We accrue all income that we expect to earn through the completion of our liquidation based on the estimated disposal date of each asset, to the extent we have a reasonable basis for estimation. Rental and other property revenues are estimated based on projected multifamily operations and contractual in-place leases for commercial space through the anticipated disposition date of the properties. Sublease income is estimated based on the contractual in-place sublease arrangements. These amounts are recognized within Liabilities for estimated costs in excess of estimated receipts during liquidation in the Condensed Consolidated Statement of Net Assets. See Note 4 for additional information regarding the liabilities for costs in excess of estimated receipts during liquidation.

Future lease obligations for our ground leases are recognized within Lease liabilities - finance leases, while future lease obligations for our corporate office space are included within Accounts payable and accrued expenses in the Condensed Consolidated Statement of Net Assets. These lease liabilities are measured at the present value of the expected future lease payments over the liquidation period at discount rates equivalent to the rates we would have paid on a secured borrowing with terms similar to the leases at commencement.

Our apartment homes and commercial spaces are leased to tenants under operating leases. As of January 31, 2026, our apartment home leases generally had initial terms of 24 months or less. As of January 31, 2026, our commercial space leases generally had initial terms between 5 and 15 years and represent approximately 4% to 5% 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 month ended January 31, 2026, we recognized sublease income of $0.1 million. For the three months ended March 31, 2025, we recognized sublease income of $0.4 million.

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 month ended January 31, 2026, and three months ended March 31, 2025, our total lease income was comprised of the following amounts for all residential and commercial property leases (in thousands):


	Month Ended January 31,		Three Months Ended March 31,
	2026		2025
Fixed lease income	$	5,184	$	19,069
Variable lease income		529		2,367
Total lease income	$	5,713	$	21,436

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 month ended January 31, 2026, and three months ended March 31, 2025 (in thousands):


	Month Ended January 31,		Three Months Ended March 31,
	2026		2025
Operating lease costs	$	115	$	438
Finance lease costs:
Amortization of right-of-use assets		106		322
Interest on lease liabilities		632		1,852
Total lease costs, net of capitalized amounts	$	853	$	2,612