Annual report pursuant to Section 13 and 15(d)

Lease Revenues (Tables)

v3.22.4
Lease Revenues (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Summary of Leasing Activity
As of December 31, 2022 and 2021, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
December 31, 2022 December 31, 2021
Operating lease right-of-use assets(1)
$ 623  $ 671 
Operating lease liabilities(2)
$ 617  $ 664 
Weighted-average remaining lease term (years) 15.3 15.7
Weighted-average incremental borrowing rate 7.93  % 7.78  %
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $6,000 and $7,000 for the years ended December 31, 2022 and 2021, respectively, and are included within Other assets, net on the accompanying Consolidated Balance Sheets.
(2)Included within Other liabilities, net on the accompanying Consolidated Balance Sheets.
The following table sets forth the components of our lease revenues for the years ended December 31, 2022, 2021, and 2020 (dollars in thousands, except for footnotes):
For the Years Ended December 31,
2022 2021 2020
Fixed lease payments(1)
$ 81,423  $ 69,998  $ 51,377 
Variable lease payments(2)
7,813  5,320  5,654 
Lease revenue, net(3)
$ 89,236  $ 75,318  $ 57,031 
(1)Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue.
(2)Variable lease payments include participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the years ended December 31, 2022, 2021, and 2020, we recorded participation rents of approximately $7.7 million, $5.2 million, and $2.4 million, respectively, and reimbursements of certain property operating expenses by tenants of approximately $110,000, $101,000, and $457,000, respectively. In addition, during the year ended December 31, 2020, we received a lease termination payment of approximately $3.0 million.
(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.