Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

8.     Leases

The Company’s rental revenue reflects the leasing of space to tenants primarily under non-cancelable operating leases that generally contain provisions for minimum base rents plus reimbursement for certain operating expenses. Total minimum lease payments are recognized in rental income on a straight-line basis over the term of the related lease and estimated reimbursements from tenants for real estate taxes, insurance, common area maintenance and other recoverable operating expenses are recognized in rental income in the period that the expenses are incurred. INDUS does not have any variable payment leases with its tenants.

All of INDUS’ leases with its tenants are classified as operating leases with the exception of a sixty-five year ground lease of a small land parcel which is a sale-type lease. As such, a gain of approximately $1,000 on that lease is included in gain on sales of real estate assets in the Company’s consolidated statements of operations for the three months and nine months ended September 30, 2021.

The following is a schedule of minimum future cash rentals on the Company’s industrial/logistics operating leases as of September 30, 2022. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases or for leases on facilities not yet in service and excludes real estate taxes and property operating expense reimbursements:

Balance of 2022	$	9,539
2023		39,086
2024		38,193
2025		34,692
2026		28,269
Thereafter		76,506
	$	226,285

Expenses related to operating leases where INDUS is the lessee were $104 in each of the 2022 and 2021 nine month periods. The weighted average remaining lease term for these leases as of September 30, 2022, was 4.1 years.

Maturities of lease liabilities as of September 30, 2022 are as follows:

Balance of 2022	$	36
2023		144
2024		143
2025		143
2026		117
Total undiscounted payments		583
Less: imputed interest		(40)
Present value of minimum lease payments	$	543