Net Investment in Leases (Tables)

6 Months Ended

Jun. 30, 2021

The Company’s net investment in leases were comprised of the following as of June 30, 2021 and December 31, 2020 ($ in thousands):


	June 30, 2021		December 31, 2020
Total undiscounted cash flows	$	1,545,634	$	1,020,921
Unguaranteed estimated residual value		378,016		345,284
Present value discount		(1,436,847)		(926,233)
Allowance for losses on net investment in leases		(9,005)		(10,871)
Net investment in leases⁽¹⁾	$	477,798	$	429,101

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


	Amount
2021 (remaining six months)	$	14,249
2022		30,590
2023		43,272
2024		43,029
2025		31,955
Thereafter		1,382,539
Total undiscounted cash flows	$	1,545,634

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


	Three Months Ended				Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Allowance for losses on net investment in leases at beginning of period	$	9,270	$	10,403	$	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⁾		(265)		534		(1,866)		1,826
Allowance for losses on net investment in leases at end of period	$	9,005	$	10,937	$	9,005	$	10,937

(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 and six months ended June 30, 2021, the Company recorded a recovery of losses on net investment in leases of $0.3 million and $1.9 million, respectively, due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. During the three and six months ended June 30, 2020, the Company recorded an allowance for losses on net investment in leases of $0.5 million and $1.8 million, respectively, due primarily to the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13.