Annual report pursuant to Section 13 and 15(d)

Lease Revenues

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Lease Revenues
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Lease Revenues LEASE REVENUES
The following table sets forth the components of our lease revenue for the years ended December 31, 2023, 2022, and 2021 (dollars in thousands, except for footnotes):
For the Years Ended December 31,
2023 2022 2021
Fixed lease payments(1)
$ 83,695  $ 81,423  $ 69,998 
Variable lease payments(2)
6,624  7,813  5,320 
Lease revenue, net(3)
$ 90,319  $ 89,236  $ 75,318 
(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, 2023, 2022, and 2021, we recorded participation rents of approximately $5.9 million, $7.7 million, and $5.2 million, respectively, and reimbursements of certain property operating expenses by tenants of approximately $688,000, $110,000, and $101,000, respectively. In addition, during the year ended December 31, 2023, we recorded late fees of approximately $46,000.
(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.