Annual report pursuant to Section 13 and 15(d)

Lease Revenues (Tables)

v3.24.0.1
Lease Revenues (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Summary of Leasing Activity
As of December 31, 2023 and 2022, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
December 31, 2023 December 31, 2022
Operating lease right-of-use assets(1)
$ 574  $ 623 
Operating lease liabilities(2)
$ 568  $ 617 
Weighted-average remaining lease term (years) 15.0 15.3
Weighted-average incremental borrowing rate 8.12  % 7.93  %
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $6,000 for each of the years ended December 31, 2023 and 2022 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 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.