| Lease Revenues |
LEASE REVENUES
The following table sets forth the components of our lease revenues for the three and six months ended June 30, 2019 and 2018 (dollars in thousands, except for footnotes):
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For the Three Months Ended June 30, |
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For the Six Months Ended June 30, |
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2019 |
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2018 |
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2019 |
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2018 |
Fixed lease payments(1)
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$ |
8,332 |
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$ |
6,632 |
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$ |
16,105 |
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$ |
13,303 |
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Variable lease payments(2)
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30 |
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2 |
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87 |
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25 |
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Lease revenues, net(3)
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$ |
8,362 |
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$ |
6,634 |
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$ |
16,192 |
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$ |
13,328 |
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(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. |
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(2) |
Variable lease payments include reimbursements of certain property operating expenses by tenants and participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm. 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, 2019, we recorded reimbursements of certain property operating expenses by tenants of approximately $30,000 and $60,000, respectively, and participation rents of approximately $0 and $27,000, respectively. During the three and six months ended June 30, 2018, we recorded reimbursements of certain property operating expenses by tenants approximately $2,000 and $8,000, respectively, and participation rents of approximately $0 and $17,000, respectively.
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(3) |
Reflected as a line item on our accompanying Condensed Consolidated Statements of Operations. |
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