Leases

12 Months Ended

Nov. 30, 2020

Leases

Leases

9. Leases

As lessor, all of INDUS’s leases with its tenants were classified as operating leases under previous guidance and remained operating leases upon the adoption of ASC 842, therefore, as a lessor there was no significant impact upon adoption. The Company’s rental revenue reflects the leasing of industrial/logistics and, to a lesser extent, office/flex space and certain land parcels. INDUS does not have any variable payment leases with its tenants.

The following is a schedule of minimum future cash rentals on tenant operating leases in effect as of November 30, 2020. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases and excludes real estate taxes and property operating expense reimbursements:

2021	$	27,493
2022		24,236
2023		21,171
2024		18,644
2025		16,085
Later years		26,677
	$	134,306

Effective October 1, 2016, INDUS entered into a ten-year sublease (the “New York Office Lease”) for approximately 1,920 square feet in New York City for its executive offices. The sublease is with Bloomingdale Properties, Inc., an entity that is controlled by certain members of the Cullman and Ernst Group, which is considered a related party to the Company. The New York Office Lease was approved by the Audit Committee of INDUS’s Board of Directors and the lease rates under the sublease were at market rate at the time the sublease was signed.

Upon adoption of ASC 842 on December 1, 2019, INDUS, as lessee, recognized two ROU assets aggregating $858 and lease liabilities aggregating $858 for operating leases it had previously entered into, the New York Office Lease and a lease for office equipment. The Company adopted the practical expedient for not separating lease components from non-lease components. ROU assets and lease liabilities are included in other assets and other liabilities, respectively, on INDUS’s consolidated balance sheet. ROU assets are evaluated for impairment in a manner consistent with the treatment of other long-lived assets. These lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors, therefore, INDUS utilized its incremental borrowing rate of 3.5% at the time of adoption in order to discount lease payments to present value. These lease agreements do not contain any significant residual value guarantees or restrictive covenants. The lease costs are allocated over the remaining lease terms on a straight-line basis.

Total rental expense for all operating leases, as lessee, in fiscal 2020, fiscal 2019 and fiscal 2018 was $159, $146 and $149, respectively. The weighted average remaining lease term for INDUS’s operating leases as of November 30, 2020, was 5.9 years.

Maturities of lease liabilities as of November 30, 2020 are as follows:

Fiscal 2021	$	136
Fiscal 2022		143
Fiscal 2023		141
Fiscal 2024		140
Fiscal 2025		140
Thereafter		129
Total undiscounted payments		829
Less: imputed interest		(81)
Present value of minimum lease payments	$	748