Leases

3 Months Ended

Mar. 31, 2023

Leases

Leases

7. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living, self-storage, retail, office and commercial property, marinas, 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 2072, some of which include options to terminate or extend.

The components of leasing revenue are as follows:

	Three Months Ended March 31,
	2023		2022
Leasing revenue
Lease payments	$	10,196	$	7,379
Variable lease payments		1,594		1,443
Total leasing revenue	$	11,790	$	8,822

Minimum future base rental revenue on non-cancelable leases subsequent to March 31, 2023, for the years ending December 31 are:

2023	$	19,206
2024		13,404
2025		9,762
2026		8,041
2027		6,842
Thereafter		28,868
	$	86,123

The Company as Lessee

As of March 31, 2023, 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 2081. 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 March 31,
	2023			2022
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	33		$	29
Interest on lease liability		3			4
Operating lease cost		110			102
Variable and short-term lease cost		248			192
Total lease cost	$	394		$	327
Other information
Weighted-average remaining lease term - finance lease (in years)		3.1			3.2
Weighted-average remaining lease term - operating leases (in years)		2.1			3.4
Weighted-average discount rate - finance lease		5.2	%		4.6	%
Weighted-average discount rate - operating leases		4.9	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to March 31, 2023, for the years ending December 31 are:

	Finance Leases		Operating Leases
2023	$	113	$	339
2024		102		265
2025		58		93
2026		15		55
2027		7		55
Thereafter		—		385
Total		295		1,192
Less imputed interest		(17)		(166)
Total lease liabilities	$	278	$	1,026