Leases

9 Months Ended

Sep. 30, 2020

Leases

Leases

8. Leases

Leasing revenue consists of rental revenue from multi-family, retail, office and commercial property, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. The Company’s leases have remaining lease terms up to the year 2036, some of which include options to terminate or extend.

The components of leasing revenue are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Leasing revenue
Lease payments	$	3,874	$	3,107	$	11,027	$	8,511
Variable lease payments		1,089		930		3,142		2,707
Total leasing revenue	$	4,963	$	4,037	$	14,169	$	11,218

Minimum future base rental revenue on non-cancelable leases subsequent to September 30, 2020, for the years ending December 31 are:

2020	$	3,890
2021		12,586
2022		10,638
2023		8,436
2024		7,184
Thereafter		19,352
	$	62,086

As of September 30, 2020, the Company leased certain office equipment under a finance lease and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2049. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. Finance lease right-of-use assets are included within property, plant and equipment and operating lease right-of-use assets are included within other assets on the condensed consolidated balance sheets, which represent the Company’s right to use an underlying asset during a lease term for leases in excess of one year. Corresponding finance lease liability and operating lease liabilities are included within other liabilities on the condensed consolidated balance sheets and are related to the Company’s obligation to make lease payments for leases in excess of one year. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable.

The components of lease expense are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020			2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	13	$	12	$	38		$	28
Interest on lease liability		2		3		7			7
Operating lease cost		71		71		208			176
Short-term lease cost		473		332		823			633
Total lease cost	$	559	$	418	$	1,076		$	844
Other information
Weighted-average remaining lease term - finance lease (in years)						3.9			4.4
Weighted-average remaining lease term - operating leases (in years)						2.4			3.4
Weighted-average discount rate - finance lease						5.0	%		5.0	%
Weighted-average discount rate - operating leases						5.0	%		5.0	%

The aggregate payments of finance lease liability subsequent to September 30, 2020, for the years ending December 31 are:

2020	$	15
2021		58
2022		58
2023		58
2024		12
Thereafter		1
Total		202
Less imputed interest		(17)
Total finance lease liability	$	185

The aggregate payments of operating lease liabilities subsequent to September 30, 2020, for the years ending December 31 are:

2020	$	68
2021		214
2022		126
2023		83
2024		14
Thereafter		293
Total		798
Less imputed interest		(188)
Total operating lease liabilities	$	610