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Net Investment in Leases | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Net Investment in Leases | Note 5—Net Investment in Leases In June 2021, the Company acquired two parcels of land for $42.0 million each and simultaneously entered into two Ground Leases with the respective tenants. Each Ground Lease also provides for a leasehold improvement allowance up to a maximum of $83.0 million. The Company also concurrently entered into an agreement pursuant to which SAFE would acquire the Ground Leases from the Company. If certain construction conditions are not met within a specified time period, SAFE will have no obligation to acquire the Ground Leases or fund the leasehold improvement allowances. The Company classified one of the Ground Leases as a sales-type lease and it is recorded in “Net investment in leases available for sale” on the Company’s consolidated balance sheets. For the year ended December 31, 2021, the Company recognized $1.2 million of non-cash interest income in "Interest income from sales-type leases" in the Company’s consolidated statements of operations. One Ground Lease was entered into with the seller of the land and did not qualify for sale leaseback accounting, and as such, was accounted for as a financing transaction and $42.0 million was recorded in “Loans receivable held for sale” on the Company’s consolidated balance sheet at the time of acquisition. There can be no assurance that the conditions to closing will be satisfied and that SAFE will acquire the properties and Ground Leases from the Company. The Company’s net investment in leases were comprised of the following as of December 31, 2021 ($ in thousands):
​ | ​ | ​ | ​
​ |  | December 31, 2021
Total undiscounted cash flows | ​ | $ | 524,712
Unguaranteed estimated residual value | ​ |  | 42,000
Present value discount | ​ |  | (523,497)
Net investment in leases(1) | ​ | $ | 43,215
(1) | As of December 31, 2021 and 2020, the Company’s net investment in lease was current in its payment status and performing in accordance with the terms of the lease. As of December 31, 2021, the risk rating on the Company’s net investment in leases was 1.0.
​ Future Minimum Lease Payments under Sales-type Leases—Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable and lease payments for assets that are classified as discontinued operations, in effect as of December 31, 2021, are as follows by year ($ in thousands):(1) ​
​ | ​ | ​ | ​
​ |  | Amount
2022 | ​ | $ | 109
2023 | ​ |  | 1,417
2024 | ​ |  | 1,445
2025 | ​ |  | 1,474
2026 | ​ |  | 1,504
Thereafter | ​ |  | 518,763
Total undiscounted cash flows | ​ | $ | 524,712
(1) | Refer to Note 3 - Net Lease Sale and Discontinued Operations.
​ Allowance for Losses on Net Investment in Leases—Changes in the Company’s allowance for losses on net investment in leases for the years ended December 31, 2021 and 2020 were as follows ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year Ended |
​ | ​ | December 31, 2021 |  | December 31, 2020 | ​
Allowance for losses on net investment in leases at beginning of period(1) |  | $ | 10,871 | ​ | $ | — |
Initial allowance recorded upon adoption of new accounting standard(2) | ​ |  | — | ​ |  | 9,111 | ​
Provision for (recovery of) losses on net investment in leases included in discontinued operations(1) | ​ | ​ | (10,871) | ​ | ​ | 1,760 | ​
Allowance for losses on net investment in leases at end of period(1) | ​ | $ | — | ​ | $ | 10,871 | ​
(1) | Refer to Note 3 - Net Lease Sale and Discontinued Operations. During the year ended December 31, 2021, the Company recorded a recovery of losses on net investment in leases of $10.9 million. The recovery of losses on net investment in leases for the year ended December 31, 2021 resulted primarily from the cash flows the Company expects to receive upon disposition of the Company’s net investment in leases included in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Net investment in leases” on the Company’s consolidated balance sheets. During the year ended December 31, 2020, the Company recorded a provision for losses on net investment in leases of $1.8 million resulting primarily from the macroeconomic impact of the COVID-19 pandemic on commercial real estate markets and the adoption of ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13").
(2) | 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.
​ In May 2019, the Company entered into a transaction with an operator of bowling entertainment venues, consisting of the purchase of nine bowling centers for $56.7 million, of which seven were acquired from the lessee for $44.1 million, and a commitment to invest up to $55.0 million in additional bowling centers over the next several years. The new centers were added to the Company’s existing master leases with the tenant. In connection with this transaction, the maturities of the master leases were extended by 15 years to 2047. In the second quarter 2020, the Company entered into a transaction with the lessee whereby it would apply $10 million of the net proceeds it received from certain sales of the lessee’s facilities to the lessee’s upcoming rent obligations to the Company. In exchange, the Company’s obligation under the lease to acquire an equal amount of new facilities for them or to reduce their rent in the future was terminated. In the third quarter 2020, the Company granted the lessee a nine-month rent deferral on its two wholly-owned master leases in exchange for eliminating the Company’s commitment to invest up to $55.0 million in additional bowling centers over the next several years. All deferred amounts are required to be repaid with interest beginning in January 2023. As a result of the May 2019 modifications to the leases, the Company classified the leases as sales-type leases and recorded $424.1 million in "Net investment in leases" on its consolidated balance sheet. As a result of the modifications in the second and third quarter 2020, the Company reassessed this classification as required by ASC 842 - Leases, and concluded that the leases should continue to be classified as sales-type leases. In May 2019, the Company determined that the seven bowling centers acquired did not qualify as a sale leaseback transaction and recorded $44.1 million in "Loans receivable and other lending investments, net" on its consolidated balance sheet (refer to Note 7). As of December 31, 2021 and 2020, the assets and liabilities of these sales-type leases are recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets (refer to Note 3 – Net Lease Sale and Discontinued Operations).

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- Definition The entire disclosure of lessor's sales-type leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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