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Leases

12 Months Ended

Dec. 31, 2024

8. Leases

Leases as a Lessee:

The Company entered into a noncancelable contract with a third party to obtain office space that commenced on September 1, 2010. The contract was amended on October 25, 2016 to extend the contract through September 30, 2024 and amended again on February 7, 2024 to extend the contract through September 30, 2026. As of December 31, 2024 and December 31, 2023, the Company’s right-of-use asset was $0.7 million and $0.3 million, respectively, which is

included in prepaid and other assets on the consolidated balance sheet. A discount rate equal to the Company’s incremental borrowing rate was applied to the future monthly contractual lease payments remaining as of December 31, 2024 to compute the lease liability. The incremental borrowing rate is the rate equal to the closest borrowing under the BofA Revolver at the time of the February 7, 2024 lease amendment.


Lease Costs
		For the Year Ended December 31,
(in thousands)		2024		2023		2022
Operating lease cost	$	411	$	419	$	419
	$	411	$	419	$	419

Other information
Cash paid for amounts included in the measurement of lease liabilities	$	412	$	447	$	438
Weighted average remaining lease terms in years - operating leases		1.75		0.75		1.75
Weighted average discount rate - operating leases		8.44%		3.86%		3.86%

Maturity analysis for liabilities	Total
	Undiscounted
(in thousands)	Cash Flows
Discount rate at commencement		8.44%

2025	$	436
2026		327
	$	763

Present value lease liability	$	707

Difference between undiscounted cash flows and discounted cash flows	$	56

Leases as a Lessor:

The Company is a lessor of commercial real estate with operations that include the leasing of office properties. Many of the leases with customers contain options to extend leases at a fair market rate and may also include options to terminate leases. The Company considers several inputs when evaluating the amount it expects to derive from its leased assets at the end of the lease terms, such as the remaining useful life, expected market conditions, fair value of lease payments, expected fair values of underlying assets, and expected deployment of the underlying assets. The Company’s strategy to address its risk for the residual value in its commercial real estate is to re-lease the commercial space.

The Company has elected to apply the practical expedient to not separate non-lease components from the related lease component of real estate leases. This combined component is primarily comprised of fixed lease payments, early termination fees, common area maintenance cost reimbursements, and parking lease payments. The Company applies ASC 842, Leases, to the combined lease and non-lease components.

For the years ended December 31, 2024, 2023 and 2022, the Company recognized the following amounts of income relating to lease payments:


Income relating to lease payments:
	For the Year Ended December 31,
(in thousands)	2024		2023		2022
Income from leases (1)	$	122,032	$	146,027	$	157,719
	$	122,032	$	146,027	$	157,719

Undiscounted Cash Flows	Year ending
(in thousands)	December 31,
2025		69,392
2026		64,321
2027		54,286
2028		48,479
2029		40,699
2030 and thereafter		113,033
	$	390,210

(1) Includes amounts recognized from variable lease payments of $35,413, $42,311, and $49,730 for the year ended December 31, 2024, 2023 and 2022, respectively.