Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Unfunded Commitments—The Company generally funds construction and development loans and build-outs of space in real estate assets over a period of time if and when the borrowers and tenants meet established milestones and other performance criteria. The Company refers to these arrangements as Performance-Based Commitments. In addition, the Company has committed to invest capital in several real estate funds and other ventures. These arrangements are referred to as Strategic Investments.

As of June 30, 2019, the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands):



	Loans and Other Lending Investments⁽¹⁾		Real Estate⁽²⁾		Other Investments		Total
Performance-Based Commitments	$	330,592	$	63,415	$	—	$	394,007
Strategic Investments	—		—		24,542		24,542
Total	$	330,592	$	63,415	$	24,542	$	418,549

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(1)	Excludes $19.9 million of commitments on loan participations sold that are not the obligation of the Company.


(2)	Includes a commitment to purchase up to $55.0 million of additional bowling centers over the next several years (refer to Note 5).

Other Commitments—Future minimum lease obligations under operating and finance leases as of June 30, 2019 are as follows ($ in thousands):



	Operating⁽¹⁾⁽²⁾			Finance⁽¹⁾
2019	$	2,147		$	1,295
2020	4,054			2,633
2021	1,468			2,686
2022	869			2,740
2023	728			2,794
Thereafter	2,074			759,082
Total undiscounted cash flows	11,340			771,230
Present value discount⁽¹⁾	(1,586		)	(702,659		)
Other adjustments⁽²⁾	19,163			—
Lease liabilities	$	28,917		$	68,571

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(1)

During the three and six months ended June 30, 2019, the Company made payments of $1.0 million and $2.0 million, respectively, related to its operating leases and $0.7 million and $0.9 million, respectively, related to its finance leases (refer to Note 4). The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 4.4 years and the weighted average discount rate was 5.6%. The lease term for the Company's finance lease was 97.7 years and the discount rate was 5.7%.


(2)	The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf.

Future minimum lease obligations under operating leases as of December 31, 2018 are as follows ($ in thousands):



	Operating⁽¹⁾
2019	$	4,340
2020	4,016
2021	1,589
2022	991
2023	849
Thereafter	2,469

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(1)	The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations.

Legal Proceedings—The Company and/or one or more of its subsidiaries is party to various pending litigation matters that are considered ordinary routine litigation incidental to the Company's business as a finance and investment company focused on the commercial real estate industry, including foreclosure-related proceedings. The Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company’s consolidated financial statements.