Leases

3 Months Ended

Mar. 31, 2021

Leases

Leases

8. Leases

Leasing revenue consists of rental revenue from multi-family, senior living, 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 March 31,
	2021		2020
Leasing revenue
Lease payments	$	4,466	$	3,382
Variable lease payments		1,128		918
Total leasing revenue	$	5,594	$	4,300

Minimum future base rental revenue on non-cancelable leases subsequent to March 31, 2021, for the years ending December 31 are:

2021	$	13,000
2022		11,836
2023		9,294
2024		7,769
2025		5,246
Thereafter		14,678
	$	61,823

As of March 31, 2021, the Company leased certain office and other 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 Company recognizes short-term (twelve months or less)

lease payments in profit or loss on a straight-line basis over the term of the lease and variable lease payments in the period in which the obligation for those payments is incurred.

The components of lease expense are as follows:

	Three Months Ended March 31,
	2021			2020
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	27		$	12
Interest on lease liability		5			3
Operating lease cost		77			65
Short-term lease cost		193			78
Total lease cost	$	302		$	158
Other information
Weighted-average remaining lease term - finance lease (in years)		4.0			3.9
Weighted-average remaining lease term - operating leases (in years)		3.4			2.9
Weighted-average discount rate - finance lease		4.5	%		5.0	%
Weighted-average discount rate - operating leases		4.9	%		5.0	%

The aggregate payments of finance lease liability subsequent to March 31, 2021, for the years ending December 31 are:

2021	$	89
2022		120
2023		120
2024		73
2025		37
Total		439
Less imputed interest		(34)
Total finance lease liability	$	405

The aggregate payments of operating lease liabilities subsequent to March 31, 2021, for the years ending December 31 are:

2021	$	221
2022		245
2023		204
2024		103
2025		51
Thereafter		281
Total		1,105
Less imputed interest		(217)
Total operating lease liabilities	$	888