5.Lease Incentives

The following summarizes lease incentives by component as of March 31, 2018 and December 31, 2017 (in thousands):


		At March 31, 2018		At December 31, 2017
Non-contingent lease incentives	$	14,863	$	14,904
Contingent lease incentives		6,458		6,577
Totals	$	21,321	$	21,481

The following table summarizes our lease incentive activity for the three months ended March 31, 2018, and 2017 (in thousands):


	Three months ended March 31,
	2018				2017
		Funding		Amortization		Funding		Amortization
Non-contingent lease incentives	$	380	$	(421)	$	3,441	$	(360)
Contingent lease incentives		-		(119)		-		(167)
Totals	$	380	$	(540)	$	3,441	$	(527)

Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions. Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements. From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios. Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive. Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease.