Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

8. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living, self-storage, 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 2042, 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,
	2022		2021		2022		2021
Leasing revenue
Lease payments	$	8,765	$	5,904	$	24,131	$	15,541
Variable lease payments		1,284		1,242		4,084		3,571
Total leasing revenue	$	10,049	$	7,146	$	28,215	$	19,112

Minimum future base rental revenue on non-cancelable leases subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	6,727
2023		18,153
2024		12,100
2025		9,004
2026		7,281
Thereafter		32,485
	$	85,750

The Company as Lessee

As of September 30, 2022, the Company leased certain office and other equipment under finance leases 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 liabilities 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	30	$	29	$	90		$	85
Interest on lease liability		3		5		11			14
Operating lease cost		92		80		286			236
Variable and short-term lease cost		576		518		1,401			1,262
Total lease cost	$	701	$	632	$	1,788		$	1,597
Other information
Weighted-average remaining lease term - finance lease (in years)						3.2			3.8
Weighted-average remaining lease term - operating leases (in years)						3.0			3.4
Weighted-average discount rate - finance lease						4.9	%		4.6	%
Weighted-average discount rate - operating leases						4.8	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to September 30, 2022, for the years ending December 31 are:

	Finance Leases		Operating Leases
2022	$	34	$	92
2023		136		329
2024		89		178
2025		52		55
2026		8		12
Thereafter		1		269
Total		320		935
Less imputed interest		(19)		(174)
Total lease liabilities	$	301	$	761