Leases

6 Months Ended

Jun. 30, 2020

Leases

Leases

8. Leases

Leasing revenue consists of rental revenue from multi-family, retail, office and commercial property, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. The Company’s leases have remaining lease terms up to the year 2036, some of which include options to terminate or extend.

The components of leasing revenue are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Leasing revenue
Lease payments	$	3,772	$	2,724	$	7,154	$	5,404
Variable lease payments		1,135		950		2,052		1,777
Total leasing revenue	$	4,907	$	3,674	$	9,206	$	7,181

Minimum future base rental revenue on non-cancelable leases subsequent to June 30, 2020, for the years ending December 31 are:

2020	$	7,458
2021		11,490
2022		10,243
2023		8,158
2024		6,913
Thereafter		17,293
	$	61,555

As of June 30, 2020, the Company leased certain office equipment under a finance lease and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2049. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. Finance lease right-of-use assets are included within property, plant and equipment and operating lease right-of-use assets are included within other assets on the condensed consolidated balance sheets, which represent the Company’s right to use an underlying asset during a lease term for leases in excess of one year. Corresponding finance lease liability and operating lease liabilities are included within other liabilities on the condensed consolidated balance sheets and are related to the Company’s obligation to make lease payments for leases in excess of one year. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable.

The components of lease expense are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020			2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	13	$	12	$	25		$	16
Interest on lease liability		2		3		5			4
Operating lease cost		72		53		137			105
Short-term lease cost		277		237		351			301
Total lease cost	$	364	$	305	$	518		$	426
Other information
Weighted-average remaining lease term - finance lease (in years)						4.1			4.7
Weighted-average remaining lease term - operating leases (in years)						2.6			1.7
Weighted-average discount rate - finance lease						5.0	%		5.0	%
Weighted-average discount rate - operating leases						5.0	%		5.0	%

The aggregate payments of finance lease liability subsequent to June 30, 2020, for the years ending December 31 are:

2020	$	29
2021		58
2022		58
2023		58
2024		12
Thereafter		1
Total		216
Less imputed interest		(19)
Total finance lease liability	$	197

The aggregate payments of operating lease liabilities subsequent to June 30, 2020, for the years ending December 31 are:

2020	$	139
2021		214
2022		126
2023		83
2024		13
Thereafter		293
Total		868
Less imputed interest		(196)
Total operating lease liabilities	$	672