Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Note 4 — Leases

Tenant Lessor Arrangements

The majority of lease payments we receive from our residents and tenants are fixed. We receive variable payments from our residents primarily for utility reimbursements. Our total lease income was comprised of the following amounts for all operating leases (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Fixed lease income	$	169,337	$	165,044	$	337,567	$	329,012
Variable lease income		11,216		11,177		22,021		21,636
Total lease income	$	180,553	$	176,221	$	359,588	$	350,648

Generally, our residential leases do not provide extension options and, as of June 30, 2022, have an average remaining term of 8.8 months. In general, our commercial leases have options to extend for a certain period of time at the tenant’s option. Future minimum annual rental payments we are contractually obligated to receive under residential and commercial leases, excluding such extension options, are as follows as of June 30, 2022 (in thousands):

2022 (remaining)	$	324,862
2023		352,182
2024		62,478
2025		11,183
2026		9,470
Thereafter		42,416
Total	$	802,591

Lessor Arrangements

As of June 30, 2022, the aggregate minimum lease payments owed to us under the sales-type leases is as follows (in thousands):

2022 (remaining)	$	12,632
2023		25,262
2024		25,262
2025		25,373
2026		25,966
Thereafter		704,267
Total lease receivable (1)	$	818,762
Add: Unguaranteed residual value		131,580
Less: Discount		484,329
Total leased real estate assets	$	466,013

(1)As of June 30, 2022, this amount includes $244.8 million of guaranteed residual value and $574.0 million of remaining cash lease payments. The total future minimum lease payments assume that no early termination option is elected. The term of each of the leases ranges from 10 to 25 years.

During the three and six months ended June 30, 2022, we recognized income of $6.5 million and $13.1 million related to these sales-type leases, respectively, compared to $6.5 million and $12.9 million, respectively, during the same periods in 2021, on an effective interest basis at a constant rate of return over the term of the applicable leases, which is reflected in interest income in our condensed consolidated statements of operations.

During the second quarter of 2022, we reached an agreement with Aimco to cancel the existing sales-type leases, which is expected to occur during the third quarter of 2022. Accordingly, the preceding Lessor Arrangements table will not have any minimum lease payments associated with these sales-type leases going forward.