Net Investment in Leases (Tables)

6 Months Ended

Jun. 30, 2022

The Company’s net investment in leases were comprised of the following as of June 30, 2022 and December 31, 2021 ($ in thousands):


	June 30, 2022		December 31, 2021
Total undiscounted cash flows	$	356,302	$	524,712
Unguaranteed estimated residual value		21,750		42,000
Present value discount		(345,673)		(523,497)
Allowance for losses on net investment in leases		(380)		—
Net investment in leases⁽¹⁾	$	31,999	$	43,215

(1)	As of June 30, 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.

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


	Amount
2022 (remaining six months)	$	520
2023		1,056
2024		1,204
2025		1,240
2026		1,264
Thereafter		351,018
Total undiscounted cash flows	$	356,302

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


	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Allowance for losses on net investment in leases at beginning of period⁽¹⁾	$	281	$	9,270	$	—	$	10,871
Provision for (recovery of) losses on net investment in leases ⁽²⁾		99		(265)		380		(1,866)
Allowance for losses on net investment in leases at end of period⁽¹⁾	$	380	$	9,005	$	380	$	9,005

(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 and six months ended June 30, 2022, the Company recorded a provision for losses on net investment in leases of $0.1 million and $0.4 million, respectively, due primarily to the macroeconomic forecast on commercial real estate markets. 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 (both of which are included in “Net income from discontinued operations”), respectively, due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020.