NOTE 17 – LEASES

Our leasing business consists of various arrangements, where we act either (i) as the lessor (for our owned properties rented to third parties), or (ii) as the lessee (mostly our cinema locations on leased-facility model). Below are the rental commitments for these various lease arrangements:

As Lessor – Future Rental Commitments from our Tenants

Real estate revenue amounted to $16.3 million, $13.6 million, and $15.0 million, for the fiscal years ended December 31, 2017, 2016, and 2015, respectively. Also, there were no material contingent rentals recognized for the three years then ended December 31, 2017. As of December 31, 2017, the minimum future rentals on our real estate properties currently leased to third parties under non-cancellable operating lease arrangements for the next five years are summarized as follows:


(Dollars in thousands)	Future Minimum Rentals
2018	$	9,583
2019		8,692
2020		7,200
2021		6,599
2022		5,807
Thereafter		16,986
Total	$	54,867

As Lessee – Future Lease Commitments to our Landlords

The Company has entered into various leases for our cinema exhibition segment. We also lease office space and equipment under non-cancelable operating leases. As of December 31, 2017, the remaining terms of these leases, inclusive of renewal options, range from 1 to 35 years. All of our leases are accounted for as operating leases and we do not have any capital leases as of December 31, 2017.

We determine the annual base rent expense of our cinemas by amortizing total minimum lease obligations on a straight-line basis over the lease terms. Certain of our cinema leases provide for both base and in addition contingent rentals based upon a specified percentage of cinema revenue with a guaranteed minimum. Substantially all of our leases require the payment of property taxes, insurance, and other costs applicable to the property. The base rent and contingent rental expenses are summarized as follows:


(Dollars in thousands)	2017		2016		2015
Base rent expense	$	31,630	$	29,824	$	30,565
Contingent rental expense		2,505		1,484		1,848
Total cinema rent expense	$	34,135	$	31,308	$	32,413

Future minimum lease payments by year and, in the aggregate, under non-cancelable operating leases consisted of the following:


	Minimum Lease Payments at December 31, 2017
(Dollars in thousands)	Ground Lease		Premises Lease		Equipment Lease		Total
2018	$	3,629	$	27,980	$	--	$	31,609
2019		3,717		27,837		--		31,554
2020		2,792		23,883		--		26,675
2021		2,730		23,677		--		26,407
2022		2,771		5,069		--		7,840
Thereafter		20,823		185,910		--		206,733
Total	$	36,462	$	294,356	$	--	$	330,818

We expect the amount of minimum lease payments will fluctuate depending on the foreign currency exchange rates of the Australian dollar to the U.S. dollar and the New Zealand dollar to the U.S. dollar, mainly because a significant portion of our cinema exhibition business is conducted in Australia and New Zealand. See Note 18 – Related Parties for the amount of leases associated with any related party leases.

Debt Guarantee

As of December 31, 2017 we no longer have any guarantee in place relating to our unconsolidated joint ventures. The total estimated debt of unconsolidated joint ventures and entities, consisting solely of Rialto Distribution (see Note 6 – Investments in Unconsolidated Joint Ventures), was $1.0 million (NZ$1.5 million) as of December 31, 2016. Our share of the unconsolidated debt, based on our ownership percentage, was NZ$500,000 as of December 31, 2016. This debt was guaranteed by one of our subsidiaries to the extent of our ownership percentage up until the point that this was transferred to one of our business partners. Based on the financial position of Rialto Distribution and in consideration of this debt guarantee, we accrued $348,000 (NZ$500,000) as of December 31, 2016, recorded as part of Accounts payable and accrued liabilities.