Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Legal Matters

The Company is subject, from time to time, to various types of third-party legal claims or litigation that arise in the ordinary course of business, including, but not limited to, property loss claims, personal injury or other damages resulting from contact with the Company's properties. These claims and lawsuits and any resulting damages are generally covered by the Company's insurance policies. The Company accrues for legal costs associated with loss contingencies when these costs are probable and reasonably estimable. While the resolution of these matters cannot be predicted with certainty, based on currently available information, management does not expect that the final outcome of any pending claims or legal proceedings will have a material adverse effect on the financial condition, results of operations or cash flows of the Company.

Captive Insurance Company

In April 2023, the Company formed a wholly-owned captive insurance company (the "Captive") which provides insurance coverage for all losses below the deductibles of the Company’s third party liability insurance policies relating to wind, flood, named windstorm, earthquake, fire, and other property-related perils. The Company formed the Captive as part of its overall risk management program and to stabilize insurance costs, manage exposures, and recoup expenses through the function of the captive program. The Captive is capitalized in accordance with the applicable regulatory requirements. As of December 31, 2023, the Captive had no outstanding or unpaid claims.

Operating Lease Commitments

The Company is the lessee under various operating leases for corporate office space for which the Company recognizes right-of-use (“ROU”) assets and related lease liabilities.

The following table summarizes the Company's operating lease arrangements as of December 31, 2023 and 2022:


		As of
	Balance Sheet Caption	December 31, 2023			December 31, 2022
Operating lease ROU assets	Deferred costs and other assets, net	$	3,220		$	3,220
Operating lease ROU accumulated amortization	Deferred costs and other assets, net	$	(967)		$	(570)
Operating lease liabilities	Other liabilities	$	3,023		$	3,265

Weighted-average remaining lease term		6.0 years			6.7 years
Weighted-average discount rate		4.47		%	4.35		%

The following table summarizes the Company's operating lease arrangements for the years ended December 31, 2023 and 2022:


	Statement of Operations and Comprehensive Income (Loss) Caption	Year ended December 31,
		2023		2022
Minimum lease payments	General and administrative	$	570	$	528
Variable lease payments	General and administrative	298		343
Short-term lease payments	General and administrative	114		97
Total lease cost		$	982	$	968

The following table summarizes the Company's future minimum operating lease obligations as of December 31, 2023:


Scheduled minimum payments by year:	Future Minimum Lease Payments
2024	$	628
2025	511
2026	517
2027	529
2028	522
Thereafter	786
Total expected minimum lease obligation	3,493
Less: Amount representing interest (a)	(470)
Present value of net minimum lease payments	$	3,023

(a)Interest includes the amount necessary to reduce the total expected minimum lease obligations to present value calculated at the Company's incremental borrowing rate.