Net Investment in Leases (Tables)

3 Months Ended

Mar. 31, 2022

The Company’s net investment in leases were comprised of the following as of March 31, 2022 and December 31, 2021 ($ in thousands):


	March 31, 2022		December 31, 2021
Total undiscounted cash flows	$	356,338	$	524,712
Unguaranteed estimated residual value		21,750		42,000
Present value discount		(349,676)		(523,497)
Allowance for losses on net investment in leases		(281)		—
Net investment in leases⁽¹⁾	$	28,131	$	43,215

(1)	As of March 31, 2022 and December 31, 2021, 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 March 31, 2022, the risk rating on the Company’s net investment in leases was 1.0.

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


	Amount
2022 (remaining nine months)	$	688
2023		934
2024		1,194
2025		1,240
2026		1,264
Thereafter		351,018
Total undiscounted cash flows	$	356,338

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


	Three Months Ended
	March 31, 2022		March 31, 2021
Allowance for losses on net investment in leases at beginning of period⁽¹⁾	$	—	$	10,871
Provision for (recovery of) losses on net investment in leases ⁽²⁾		281		(1,601)
Allowance for losses on net investment in leases at end of period⁽¹⁾	$	281	$	9,270

(1)	All 2021 amounts were for net investment in leases included in the Net Lease Sale (refer to Note 3 – Net Lease Sale and Discontinued Operations).

(2)

During the three months ended March 31, 2022, the Company recorded a provision for losses on net investment in leases of $0.3 million due primarily to the macroeconomic forecast on commercial real estate markets. During the three months ended March 31, 2021, the Company recorded a recovery of losses on net investment in leases of $1.6 million (which is included in “Net income from discontinued operations’) due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020.