Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

8. Leases

The Company’s rental revenue reflects the leasing of industrial/logistics space and certain land parcels. 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 2021.

The following is a schedule of minimum future cash rentals on the Company’s operating leases as of December 31, 2022. The schedule does not reflect future rental revenues from the renewal or replacement of existing leases or for facilities not yet in service and excludes real estate taxes and property operating expense reimbursements:

2023	$	39,507
2024		39,658
2025		36,230
2026		28,793
2027		20,341
Thereafter		56,848
	$	221,377

In December 2022, INDUS, as lessee, entered into a ten-year lease agreement with the buyer of the Office/Flex Portfolio for approximately 14,500 square feet in Bloomfield, Connecticut.

In 2016, INDUS, as lessee, 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’ Board of Directors and the lease rates under the sublease were at market rate at the time the sublease was signed.

Expenses related to operating leases where INDUS is the lessee were $154 and $138 in 2022 and 2021, respectively. The weighted average remaining lease term for these leases as of December 31, 2022, was 8.5 years.

Maturities of lease liabilities as of December 31, 2022 are as follows:

2023	$	326
2024		330
2025		333
2026		310
2027		197
Thereafter		1,028
Total undiscounted payments		2,524
Less: imputed interest		(374)
Present value of minimum lease payments	$	2,150