NOTE 18 – 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 models). Below are the rental commitments for these various lease arrangements:

As Lessor – Future Rental Commitments from our Tenants

Real estate revenue amounted to $15.2 million, $16.4 million, and $13.9 million, for the fiscal years ended December 31, 2018, 2017, and 2016, respectively. Also, there were no material contingent rentals recognized for the three years then ended December 31, 2018. As of December 31, 2018, 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
2019	$	7,964
2020		6,807
2021		6,190
2022		5,337
2023		4,714
Thereafter		9,632
Total	$	40,644

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, 2018, 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, 2018.

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)	2018		2017		2016
Base rent expense	$	32,281	$	31,630	$	29,824
Contingent rental expense		1,774		2,505		1,484
Total cinema rent expense	$	34,055	$	34,135	$	31,308

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, 2018
(Dollars in thousands)	Ground Lease		Premises Lease		Total
2019	$	3,717	$	27,204	$	30,921
2020		1,922		23,870		25,792
2021		1,860		23,368		25,228
2022		1,901		21,901		23,802
2023		1,905		18,737		20,642
Thereafter		10,498		78,741		89,239
Total	$	21,803	$	193,821	$	215,624

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 19 – Related Parties for the amount of leases associated with any related party leases.