Leases

6 Months Ended

Jun. 30, 2024

Leases

Leases

7. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living, self-storage, retail, office and commercial property, marinas, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. Variable lease payments primarily include property taxes, insurance, utilities and common area maintenance or payments based on a percentage of sales over specified levels and senior living services. The Company’s leases have remaining lease terms up to the year 2072, 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,
	2024		2023		2024		2023
Leasing revenue
Lease payments	$	12,450	$	10,682	$	24,503	$	20,878
Variable lease payments		2,302		1,696		4,591		3,290
Total leasing revenue	$	14,752	$	12,378	$	29,094	$	24,168

Minimum future base rental revenue on non-cancelable leases subsequent to June 30, 2024, for the years ending December 31 are:

2024	$	17,595
2025		18,708
2026		13,008
2027		11,195
2028		8,058
Thereafter		40,698
	$	109,262

The Company as Lessee

As of June 30, 2024, the Company leased certain office and other equipment under finance leases and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2081. Operating leases also include property for hospitality employee housing. 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. 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 Company recognizes short-term (twelve months or less) lease payments in profit or loss on a straight-line basis over the term of the lease and variable lease payments in the period in which the obligation for those payments is incurred.

The components of lease expense are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024			2023
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	46	$	34	$	87		$	68
Interest on lease liability		7		3		13			7
Operating lease cost		537		115		734			227
Variable and short-term lease cost		686		690		929			938
Total lease cost	$	1,276	$	842	$	1,763		$	1,240
Other information
Weighted-average remaining lease term - finance lease (in years)						2.5			3.0
Weighted-average remaining lease term - operating leases (in years)						1.9			1.9
Weighted-average discount rate - finance lease						5.4	%		5.3	%
Weighted-average discount rate - operating leases						5.0	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to June 30, 2024, for the years ending December 31 are:

	Finance Leases		Operating Leases
2024	$	103	$	1,106
2025		174		2,123
2026		128		2,017
2027		89		55
2028		66		55
Thereafter		9		331
Total		569		5,687
Less imputed interest		(55)		(442)
Total lease liabilities	$	514	$	5,245