The majority of lease payments we receive from our residents and tenants are fixed. We receive variable payments from our residents and commercial tenants primarily for utility reimbursements and other services.

For the three and six months ended June 30, 2023 and 2022, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):

Aimco as Lessee


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fixed lease income	$	42,208	$	46,851	$	83,213	$	92,982
Variable lease income		3,244		3,673		6,406		7,409
Total lease income	$	45,452	$	50,524	$	89,619	$	100,391

We are lessee to finance leases for the land underlying the development sites at Upton Place, Strathmore Square, and Oak Shore.

As of June 30, 2023 and December 31, 2022, our finance leases had weighted-average remaining terms of 93.8 years and 94.2 years, respectively, and weighted-average discount rates of 6.1% at both period ends.

For the three and six months ended June 30, 2023, amortization related to our finance leases was $0.0 million for both periods, net of amounts capitalized, compared to $3.4 million and $6.7 million, respectively, for the three and six months ended June 30, 2022.

For the three and six months ended June 30, 2023, we capitalized $2.1 million and $4.2 million, respectively, of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets, compared to $1.8 million and $4.8 million, respectively, for the three and six months ended June 30, 2022.

We have operating leases primarily for corporate office space. Substantially all of the payments under our office leases are fixed. As of June 30, 2023 and December 31, 2022, our operating leases had weighted-average remaining terms of 5.6 years and 6.3 years, respectively, and weighted-average discount rates of 3.3%, and 3.4%, respectively.

We record operating lease expense on a straight-line basis over the lease term. Total operating lease expense for the three and six months ended June 30, 2023 was $0.4 million and $0.8 million, respectively, compared to $0.2 million and $0.3 million, respectively, for the three and six months ended June 30, 2022. As of June 30, 2023 and December 31, 2022, operating lease right-of-use lease assets of $6.9 million and $6.7 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, operating lease liabilities of $12.7 million and $12.8 million, respectively, are included in Accrued liabilities and other in our Condensed Consolidated Balance Sheets.

For finance and operating leases, when the rate implicit in the lease cannot be determined, we estimate the value of our lease liabilities using discount rates equivalent to the rates we would pay on a secured borrowing with terms similar to the leases. We determine if an arrangement is or contains a lease at inception. We have lease agreements with lease and non-lease components, and have elected to not separate these components for all classes of underlying assets. Leases with an initial term of 12 months or less are not recorded in our Condensed Consolidated Balance Sheets. Leases with initial terms greater than 12 months are recorded as operating or finance leases in our Condensed Consolidated Balance Sheets.

We have a sublease arrangement to provide space within our corporate office for fixed rents, which commenced on January 1, 2021 and expires on May 31, 2029. For the three and six months ended June 30, 2023, we recognized sublease income of $0.4 million and $0.7 million, respectively, compared to $0.4 million and $0.7 million, respectively, for the three and six months ended June 30, 2022.

Combined minimum annual lease payments under operating and finance leases, and sublease income that offsets our operating lease rent, are as follows (in thousands):


	Sublease Income and Lease Modification Income		Operating Lease Future Minimum Rent			Finance Leases Future Minimum Payments
Remainder of 2023	$	704	$	1,271		$	1,451
2024		1,413		2,657			3,921
2025		1,423		2,355			4,437
2026		1,433		2,341			4,954
2027		1,443		2,380			5,483
Thereafter		2,083		3,023			1,433,296
Total	$	8,499		14,027			1,453,542
Less: Discount				(1,283	)		(1,336,949	)
Total lease liabilities			$	12,744		$	116,593