LEASING EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASING EQUIPMENT, NET

LEASING EQUIPMENT, NET AND PROPERTY

Leasing equipment, net is summarized as follows:

	December 31,
	2023		2022
Leasing equipment	$	45,982	$	44,179
Less: Accumulated depreciation	(10,395)		(9,272)
Leasing equipment, net	$	35,587	$	34,907

Depreciation expense for leasing equipment is summarized as follows:

	Year Ended December 31,
	2023		2022		2021
Depreciation expense for leasing equipment	$	1,148	$	1,105	$	1,103

Lessor, Sales-type Leases

Sales-Type Leases

In December 2023, Jefferson Terminal entered into an agreement to lease land to an entity controlled by an affiliate of the Manager. The lease is initially for a two-year construction period and eight years post-completion with renewals that extend the lease up to 32 years. We expect all renewals to be exercised as the cost to remove the assets will be significant. We determined that the lease is a sales-type lease as the present value of the lease payments is substantially all of fair value. Lease payments will increase based on an inflation escalator and be treated as variable lease payments as they occur.

At lease commencement, we recorded $6.6 million of gain on sales-type lease which is recorded in Gain (loss) on sale of assets in the Consolidated and Combined Consolidated Statements of Operations during the year ended December 31, 2023. We also recorded $0.1 million of interest income which is included in Revenues in the Consolidated and Combined Consolidated Statements of Operations during the year ended December 31, 2023.

As of December 31, 2023, we recorded $7.9 million of lease receivable and $0.6 million of unguaranteed residual value which are included in Other assets on the Consolidated Balance Sheets, as well as $0.8 million of short-term lease receivable which is included in Other current assets on the Consolidated Balance Sheets.

The following table presents future minimum lease payments under the sales-type lease as of December 31, 2023:

2024	$	780
2025	780
2026	780
2027	780
2028	780
Thereafter	21,060
Total undiscounted lease payments	24,960
Less: Imputed interest	16,222
Total lease receivable	$	8,738