Lease Revenues (Tables) |
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Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Leasing Activity |
The following table sets forth the components of our lease revenue for the three and six months ended June 30, 2024 and 2023 (dollars in thousands, except for footnotes):
(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, 2024, we recorded participation rents of approximately $1.1 million during each period, reimbursements of certain property operating expenses by tenants of approximately $78,000 and $311,000, respectively, and late fees of approximately $7,000 during each period. During the three and six months ended June 30, 2023, we recorded participation rents of approximately $0 and $195,000, respectively, reimbursements of certain property operating expenses by tenants of approximately $57,000 and $93,000, respectively, and 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.
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