Net Investment in Leases (Tables)

3 Months Ended

Mar. 31, 2021

The Company's net investment in leases were comprised of the following as of March 31, 2021 and December 31, 2020 ($ in thousands):


	March 31, 2021		December 31, 2020
Total undiscounted cash flows	$	1,020,921	$	1,020,921
Unguaranteed estimated residual value	338,543		345,284
Present value discount	(919,068)		(926,233)
Allowance for losses on net investment in leases	(9,270)		(10,871)
Net investment in leases(1)	$	431,126	$	429,101

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(1)As of March 31, 2021 and December 31, 2020, all of the Company's net investment in leases were current in their payment status and performing in accordance with the terms of the respective leases. As of March 31, 2021, the risk rating on the Company's net investment in leases was 2.0.

Schedule of future minimum lease payments to be collected under sales-type leases

Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, in effect as of March 31, 2021, are as follows by year ($ in thousands):


	Amount
2021 (remaining nine months)	$	14,248
2022	30,481
2023	41,854
2024	41,584
2025	30,481
Thereafter	862,273
Total undiscounted cash flows	$	1,020,921

Schedule of changes in allowance for losses on net investment in leases

Changes in the Company's allowance for losses on net investment in leases for the three months ended March 31, 2021 and 2020 were as follows ($ in thousands):


	2021		2020
Allowance for losses on net investment in leases at beginning of period	$	10,871	$	—
Initial allowance recorded upon adoption of new accounting standard(1)	—		9,111
(Recovery of) provision for losses on net investment in leases(2)	(1,601)		1,292

Allowance for losses on net investment in leases at end of period	$	9,270	$	10,403

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(1)The Company recorded an initial allowance for losses on net investment in leases of $9.1 million upon the adoption of ASU 2016-13 on January 1, 2020.

(2)During the three months ended March 31, 2021, the Company recorded a recovery of losses on net investment in leases of $1.6 million due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. During the three months ended March 31, 2020, the Company recorded an allowance for losses on net investment in leases of $1.3 million due primarily to the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13.