Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies.

Commitments and Contingencies

21. Commitments and Contingencies

As of June 30, 2019, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $2.2 billion, of which we expect to fund $2.0 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Additionally, as of June 30, 2019, our Commercial and Residential Lending Segment had no outstanding residential mortgage loan purchase commitments under an agreement to purchase up to $600.0 million of residential mortgage loans that meet our investment criteria from a third party residential mortgage originator.

As of June 30, 2019, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $267.5 million, including $184.8 million under revolvers and letters of credit (“LCs”), and $82.7 million under delayed draw term loans. As of June 30, 2019, $16.8 million of revolvers and LCs were outstanding.

In connection with the Infrastructure Lending Segment acquisition, we assumed guarantees of certain borrowers’ performance under existing interest rate swaps.  As of June 30, 2019, we had 10 outstanding guarantees on interest rate swaps maturing between July 2019 and June 2025. Refer to Note 12 for further discussion.

Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower.

Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our condensed consolidated financial statements.

Lease Commitment Disclosures

Our lease commitments consist of corporate office leases and ground leases for investment properties, all of which are classified as operating leases. We sublease some of the space within our corporate offices to third parties. Our lease costs and sublease income were as follows (in thousands):

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Operating lease costs	$	1,272	$	1,223	$	2,510	$	2,476
Short-term lease costs		39		46		63		76
Sublease income		(405)		(396)		(804)		(835)
Total lease cost	$	906	$	873	$	1,769	$	1,717

Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet as of June 30, 2019, is as follows (dollars in thousands):

	For the Three Months Ended		For the Six Months Ended
	June 30, 2019		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities—operating	$	1,303	$	2,594

	June 30, 2019
Weighted-average remaining lease term	5.8	years
Weighted-average discount rate	4.5	%

Future maturity of operating lease liabilities:
2019 (remainder of)	$	2,620
2020		5,864
2021		3,074
2022		858
2023		858
Thereafter		5,774
Total		19,048
Less interest component		(2,273)
Operating lease liability	$	16,775