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 months ended March 31, 2024 and 2023, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):


	Three Months Ended March 31,
	2024		2023
Fixed lease income	$	45,933	$	41,005
Variable lease income		4,199		3,161
Total lease income	$	50,132	$	44,166

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

As of March 31, 2024 and December 31, 2023, our finance leases had weighted-average remaining terms of 93.1 years and 93.4 years, respectively, and weighted-average discount rates of 6.1% and 6.1%, respectively.

For the three months ended March 31, 2024, amortization related to finance leases was $0.2 million, net of amounts capitalized, compared to zero, net of amounts capitalized, for the three months ended March 31, 2023. In addition, for the three months ended March 31, 2024, we capitalized $0.9 million of lease costs associated with active development and redevelopment projects on certain of the underlying property and ground lease assets, compared to $2.1 million for the same period in 2023.

We have operating leases primarily for corporate office space. Substantially all of the payments under our office leases are fixed. As of March 31, 2024 and December 31, 2023, our operating leases had weighted-average remaining terms of 4.9 years and 5.2 years, respectively, and weighted-average discount rates of 3.4%, and 3.3%, respectively.

We record operating lease expense on a straight-line basis over the lease term. For each of the three month periods ended March 31, 2024 and 2023, we recognized total operating lease expense of $0.4 million. As of March 31, 2024 and December 31, 2023, operating lease right-of-use lease assets of $5.8 million and $6.2 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets. As of March 31, 2024 and December 31, 2023, operating lease liabilities of $10.9 million and $11.5 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 each of the three month periods ended March 31, 2024 and 2023, we recognized sublease income of $0.4 million.

Combined minimum annual lease payments under operating and finance leases, and sublease income that offsets our operating lease rent, are as follows as of March 31, 2024 (in thousands):


	Sublease Income		Operating Lease Future Minimum Rent			Finance Leases Future Minimum Payments
Remainder of 2024	$	1,061	$	1,846		$	2,691
2025		1,423		2,355			4,437
2026		1,433		2,341			4,954
2027		1,443		2,380			5,483
2028		1,453		2,181			5,596
Thereafter		630		805			1,427,620
Total	$	7,443		11,908			1,450,781
Less: Discount				(980	)		(1,331,512	)
Total lease liabilities			$	10,928		$	119,269