Quarterly report pursuant to Section 13 or 15(d)

Lease Revenues

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Lease Revenues
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
LEASE REVENUES LEASE REVENUES
The following table sets forth the components of our lease revenue for the three and nine months ended September 30, 2024 and 2023 (dollars in thousands, except for footnotes):
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Fixed lease payments(1)
$ 18,913  $ 21,102  $ 58,578  $ 63,180 
Variable lease payments(2)
3,658  2,432  5,089  2,766 
Lease revenue, net(3)
$ 22,571  $ 23,534  $ 63,667  $ 65,946 
(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 nine months ended September 30, 2024, we recorded participation rents of approximately $3.5 million and $4.6 million, respectively, reimbursements of certain property operating expenses by tenants of approximately $142,000 and $453,000, respectively, and late fees of approximately $4,000 and $11,000, respectively. During the three and nine months ended September 30, 2023, we recorded participation rents of approximately $2.4 million and $2.6 million, respectively, reimbursements of certain property operating expenses by tenants of approximately $47,000 and $140,000, respectively, and late fees of approximately $0 and $46,000, respectively.
(3)Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.