Quarterly report pursuant to Section 13 or 15(d)

Lease Revenues (Tables)

v3.23.2
Lease Revenues (Tables)
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Summary of Leasing Activity
The following table sets forth the components of our lease revenue for the three and six months ended June 30, 2023 and 2022 (dollars in thousands, except for footnotes):
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Fixed lease payments(1)
$ 21,118  $ 20,273  $ 42,078  $ 40,210 
Variable lease payments(2)
92  20  334  26 
Lease revenue, net(3)
$ 21,210  $ 20,293  $ 42,412  $ 40,236 
(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 primarily consist of 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 three and six months ended June 30, 2023, we recorded participation rents of approximately $0 and $195,000, respectively, and reimbursements of certain property operating expenses by tenants of approximately $57,000 and $93,000, respectively. During the three and six months ended June 30, 2022, we recorded participation rents of approximately $20,000 during each period and reimbursements of certain property operating expenses by tenants of approximately $0 and $6,000, respectively. In addition, during the three and six months ended June 30, 2023, we recorded late fees of approximately $35,000 and $46,000, respectively.
(3)Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.