Our apartment homes and commercial spaces are leased to tenants under operating leases. As of September 30, 2025, our apartment home leases generally have initial terms of 24 months or less. As of September 30, 2025, our commercial space leases generally have initial terms between 5 and 15 years and represent approximately 9% to 10% of our total revenue. Our apartment home leases are generally renewable at the end of the lease term, subject to potential changes in rental rates, and our commercial space leases generally have renewal options, subject to associated increases in rental rates due to market based or fixed price renewal options and other certain conditions.

We have a sublease arrangement providing space within our corporate office for fixed rents, which commenced on January 1, 2021 and expires on May 31, 2029. For the three and nine months ended September 30, 2025, we recognized sublease income of $0.4 million and $1.1 million, respectively. For the same periods in 2024, we recognized sublease income of $0.4 million and $1.1 million, respectively.

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. We have elected the practical expedient to not separate non-lease components from associated lease components in accordance with ASC 842. For the three and nine months ended September 30, 2025 and 2024, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Fixed lease income	$	30,197	$	30,825	$	89,270	$	89,199
Variable lease income		2,945		2,614		9,058		7,550
Total lease income	$	33,142	$	33,439	$	98,328	$	96,749

Future minimum lease payments that are contractually due to us from our office space sublease and commercial space leases, excluding extension options, as of September 30, 2025, are as follows (in thousands):


	Corporate Office Sublease		Commercial Leases
Remainder of 2025	$	356	$	644
2026		1,433		3,298
2027		1,443		3,388
2028		1,453		3,326
2029		630		3,364
Thereafter		—		23,828
Total	$	5,315	$	37,848

We are lessee to finance leases for the land underlying our properties at Upton Place, Strathmore Square, and Oak Shore. We have operating leases primarily for corporate office space. Substantially all of our office lease payments are fixed. See the table below for lease costs, net of capitalized finance lease costs, for the three and nine months ended September 30, 2025 and 2024 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease costs	$	399	$	375	$	1,248	$	1,137
Finance lease costs:
Amortization of right-of-use assets, net of capitalized amounts		319		312		958		743
Interest on lease liabilities, net of capitalized amounts		1,875		1,794		5,592		4,467
Total lease costs, net of capitalized amounts	$	2,593	$	2,481	$	7,798	$	6,347

The weighted-average remaining terms and discount rates for our operating and finance leases are summarized in the table below as of September 30, 2025, and December 31, 2024:


	September 30, 2025			December 31, 2024
Weighted average remaining lease term (years):
Operating leases		3.5			4.3
Finance leases		91.8			92.5

Weighted-average discount rate:
Operating leases		3.4	%		3.5	%
Finance leases		6.1	%		6.1	%

Our finance lease at Oak Shore provides Aimco with the option to terminate the lease after the property reaches stabilization, subject to certain conditions. The lease term includes the periods covered by this option. Additionally, the lease provides the lessor at Oak Shore with a residual value guarantee of $6.1 million, which provides that if the residual value of the leased asset is less than the specified residual value guarantee at the earlier of lease expiration or termination, we are required to pay the difference.

As of September 30, 2025 and December 31, 2024, operating lease right-of-use lease assets of $3.8 million and $4.7 million, respectively, are included in Other assets, net in our Condensed Consolidated Balance Sheets. As of September 30, 2025 and December 31, 2024, operating lease liabilities of $7.8 million and $9.2 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 an initial term greater than 12 months are recorded as operating or finance leases in our Condensed Consolidated Balance Sheets.

Combined annual future minimum lease payments under our operating and finance leases are as follows as of September 30, 2025 (in thousands):


	Operating Leases			Finance Leases
Remainder of 2025	$	386		$	1,109
2026		2,466			4,954
2027		2,380			5,483
2028		2,181			5,596
2029		843			5,708
Thereafter		—			1,421,989
Total		8,256			1,444,839
Less: Discount		(493	)		(1,320,436	)
Total lease liabilities	$	7,763		$	124,403