COMMITMENTS AND CONTINGENCIES (Tables) |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Lease Obligations |
In connection with the execution of certain lease agreements, we have committed to provide capital improvements on certain of our farms. Below is a summary of certain of those projects for which we have incurred or accrued costs as of December 31, 2024 (dollars in thousands):
(1)Our obligation to provide capital to fund these improvements does not extend beyond these respective dates.
(2)Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us.
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| Summary of Leasing Activity |
As of December 31, 2024 and 2023, we recorded the following as a result of these operating ground leases (dollars in thousands, except for footnotes):
(1)Operating lease right-of-use assets are shown net of prepaid lease payments of approximately $23,000 and $6,000 as of December 31, 2024, and 2023, respectively, and are included within , net on the accompanying Consolidated Balance Sheets.
(2)Included within , net on the accompanying Consolidated Balance Sheets.
The following table sets forth the components of our lease revenue for the years ended December 31, 2024, 2023, and 2022 (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 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, 2024, 2023, and 2022, we recorded participation rents of approximately $9.4 million, $5.9 million, and $7.7 million, respectively; reimbursements of certain property operating expenses by tenants of approximately $1.4 million, $688,000, and $110,000, respectively; and late fees of approximately $20,000, $46,000, and $0, respectively.
(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.
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| Schedule of Future Lease Payments |
Future minimum lease payments due under the remaining non-cancelable terms of these leases as of December 31, 2024, are as follows (dollars in thousands):
(1)Certain annual lease payments are set at the beginning of each year to then-current market rates (as determined by the lessor). The amounts shown above represent estimated amounts based on the lease rates currently in place.
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