CaliberCos Inc.CWD
CaliberCos Inc. Leases Disclosure
Leases
Lessee - Company
As of December 31, 2025, the Company is the lessee under one corporate office lease which meets the criteria of an operating lease and has a remaining lease term of 1.8 years and a 9.4% discount rate. As of December 31, 2024, the Company was the lessee under one corporate office lease which meets the criteria of an operating lease which had a remaining lease term of 2.8 years and a 9.4% discount rate. As the Company’s lease does not specifically state an implicit rate, the Company uses a discount rate indicative of synthetic credit rate based on a market-specific analysis and applied based on the lease term as of the lease commencement date or upon a remeasurement event when calculating the present value of the remaining lease payments. Therefore, the incremental borrowing rate used reflects the cost to borrow on a securitized basis. The remaining lease term does not reflect all renewal options available to the Company, only those renewal options that the Company has assessed as reasonably certain of being exercised. The operating lease agreement does not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2025, the Company does not have any material operating or financing leases with
related parties or that have not yet commenced, or any sale-leaseback arrangements. Variable lease expense is primarily costs reimbursed related to common area maintenance.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Fixed | $ | 57 | $ | 58 | ||||||||||
| Variable | — | 1 | ||||||||||||
| Total | $ | 57 | $ | 59 | ||||||||||
During the years ended December 31, 2025 and 2024, cash paid for amounts included in the measurement of operating lease liabilities and future maturities of operating lease liabilities are immaterial.
Lessee - Consolidated Funds
As of December 31, 2025, the consolidated funds are the lessee under seven ground lease arrangements that meet the criteria of an operating lease which have a weighted average remaining lease term of 62.5 years and a weighted average discount rate of 10.9%. As the consolidated funds leases do not specifically state an implicit rate, the consolidated funds use discount rates indicative of synthetic credit rate based on a market-specific analysis and applied based on the lease term as of the lease commencement date or upon a remeasurement event when calculating the present value of the remaining lease payments. Therefore, the incremental borrowing rate used reflects the cost to borrow on a securitized basis. The remaining lease terms do not reflect all renewal options available to the consolidated funds, only those renewal options that the consolidated funds have assessed as reasonably certain of being exercised. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As of December 31, 2024, the consolidated funds were not a lessee under any lease arrangements that meet the criteria of an operating lease and did not have any material operating or financing leases with related parties or any sale-leaseback arrangements.
During the years ended December 31, 2025 and 2024, there were no fixed or variable lease expenses for the consolidated funds. During the years ended December 31, 2025 and 2024, there was no cash paid for operating lease liabilities or lease liabilities arising from lease modifications.
The following table summarizes the maturity of our undiscounted operating lease liabilities over the next five years and thereafter as of December 31, 2025 (in thousands):
| Year | Amount | |||||||
| 2026 | $ | 1,174 | ||||||
| 2027 | 1,174 | |||||||
| 2028 | 1,174 | |||||||
| 2029 | 1,174 | |||||||
| 2030 | 1,174 | |||||||
| Thereafter | 67,396 | |||||||
| Total lease payments | $ | 73,266 | ||||||
| Less: Imputed interest | (62,509) | |||||||
| Total | $ | 10,757 | ||||||
Lessor - Company
Rental revenue of the Company includes the revenue generated by the rental operations of one commercial office property. As of December 31, 2025, the leases have non-cancelable remaining lease terms from 0.2 years to 10.6 years. Certain leases contain options to extend the term of the lease and impose financial penalties, including paying all future payments required under the remaining term of the lease, if the tenant terminates the lease. The leases do not contain any lessee purchase options. As of December 31, 2025, the Company does not have any material related party leases as a lessor. The components of rental revenue for the years ended December 31, 2025 and 2024, are presented in the table below (in thousands). Variable rental revenue is primarily costs reimbursed related to common area maintenance.
| Year Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Fixed | $ | 1,542 | $ | 1,859 | ||||||||||
| Variable | 225 | 211 | ||||||||||||
| Total | $ | 1,767 | $ | 2,070 | ||||||||||
Future minimum lease payments due to the Company under non-cancellable operating leases over the next five years and thereafter as of December 31, 2025 are as follows (in thousands):
| Year | Amount | |||||||
| 2026 | $ | 1,806 | ||||||
| 2027 | 1,189 | |||||||
| 2028 | 609 | |||||||
| 2029 | 510 | |||||||
| 2030 | 419 | |||||||
| Thereafter | 1,983 | |||||||
| Total | $ | 6,516 | ||||||
Lessor - Consolidated Funds
Rental revenue of the consolidated funds includes the revenues generated primarily by the rental operations of one multi-family residential property and two commercial properties. As of December 31, 2025, the leases have non-cancellable remaining lease terms from 0.2 years to 30.9 years. Certain leases contain options to extend the term of the lease and impose financial penalties, including paying all future payments required under the remaining term of the lease, if the tenant terminates the lease. The leases do not contain any lessee purchase options. As of December 31, 2025, the consolidated funds do not have any material related party leases as a lessor. The components of rental revenue for the years ended December 31, 2025 and 2024 (in thousands) are presented in the table below. Variable rental revenue is primarily costs reimbursed related to common area maintenance.
| Years Ended December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Fixed | $ | 696 | $ | 870 | ||||||||||
| Variable | (80) | 558 | ||||||||||||
| Total | $ | 616 | $ | 1,428 | ||||||||||
Future minimum lease payments due to the consolidated funds under non-cancellable operating leases over the next five years and thereafter as of December 31, 2025 are as follows (in thousands):
| Year | Amount | |||||||
| 2026 | $ | 1,139 | ||||||
| 2027 | 823 | |||||||
| 2028 | 819 | |||||||
| 2029 | 819 | |||||||
| 2030 | 819 | |||||||
| Thereafter | 7,938 | |||||||
| Total | $ | 12,357 | ||||||
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.