Net Investment in Leases (Tables)

9 Months Ended

Sep. 30, 2022

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


	September 30, 2022		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, 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 changes in allowance for losses on net investment in leases


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Allowance for losses on net investment in leases at beginning of period⁽¹⁾	$	380	$	9,005	$	—	$	10,871
Provision for (recovery of) losses on net investment in leases ⁽²⁾		(380)		131		—		(1,735)
Allowance for losses on net investment in leases at end of period⁽¹⁾	$	—	$	9,136	$	—	$	9,136

(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 nine months ended September 30, 2022, the Company recorded a provision for (recovery of) losses on net investment in leases of ($0.4) million and $0.0 million, respectively, due primarily to asset sales. During the three and nine months ended September 30, 2021, the Company recorded a provision for (recovery of) losses on net investment in leases of $0.1 million and ($1.7) million (both of which are included in “Net income from discontinued operations”), respectively. The provision for losses for the three months ended September 30, 2021 resulted from market changes since June 30, 2021 and the recovery of losses for the nine months ended September 30, 2021 was due primarily to asset sales and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020.