Drive Shack Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

3 Months Ended

Mar. 31, 2019

The Company's commitments under lease arrangements are primarily ground leases for Entertainment Golf venues and Traditional Golf properties and related facilities, office leases and leases for equipment and golf carts. The majority of lease terms for our Entertainment Golf venues and Traditional Golf properties and related facilities initially range from 10 to 20 years, and include up to eight 5-year renewal options (see Note 13 for additional detail). Equipment and golf cart leases initially range between 2 to 6 years and typically contain renewal options which may be on a month-to-month basis. An option to renew a lease is included in the determination of the ROU asset and lease liability when it is reasonably certain that the renewal option will be exercised.

Lease related costs recognized in the Consolidated Statements of Operations for the three months ended March 31, 2019 are as follows:



Finance lease cost
Amortization of right-of-use assets	$	1,517
Interest on lease liabilities	246
Total finance lease cost	1,763

Operating lease cost
Operating lease cost	8,890
Short-term lease cost	751
Variable lease cost	2,750
Total operating lease cost	12,391

Total lease cost	$	14,154

Other information related to leases included on the Consolidated Balance Sheet as of and the three months ended March 31, 2019 are as follows:



	Operating Leases		Financing Leases
Right-of-use assets	223,278		19,793
Lease liabilities	207,153		19,775

Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows	7,484		189
Financing cash flows	N/A		1,355

Right-of-use assets obtained in exchange for lease liabilities	4,305		6,352

Weighted average remaining lease term	13.1 years		3.5 years
Weighted average discount rate	8.7	%	5.1	%

Future minimum lease payments under non-cancellable leases as of March 31, 2019 are as follows:



	Operating Leases		Financing Leases
April 1, 2019 - December 31, 2019	22,899		6,009
2020	33,680		6,013
2021	30,739		4,509
2022	29,034		2,874
2023	28,862		1,803
Thereafter	225,126		258
Total minimum lease payments	370,340		21,466
Less: imputed interest	163,187		1,691
Total lease liabilities	$	207,153	$	19,775