Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

v3.23.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Lease income related to operating leases
Lease income related to the Trust’s operating leases during the three and nine months ended September 30, 2023 and 2022 is comprised of the following:

Lease income related to fixed lease payments Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Contractual base rent $ 25,425  $ 27,212  $ 76,634  $ 82,538 
Straight-line rental income, net (a) (585) (626) (1,763) (1,899)
Lease income related to variable lease payments
Ground lease reimbursement income (b) 1,019  1,004  3,035  3,011 
Other
Amortization of above and below market lease intangibles (c) (546) (476) (1,667) (1,140)
Lease income $ 25,313  $ 27,114  $ 76,239  $ 82,510 
(a)Represents the impact of straight-line rent (contractual rent exceeds straight line rent).
(b)Ground lease reimbursement income consists of lease payments due from the tenant for land leased under non-cancellable operating leases.
(c)Represents above and below market lease amortization recognized straight line over the lease term.
Undiscounted lease payments to be received under operating leases
As of September 30, 2023, undiscounted lease payments to be received under operating leases, for the next five years and thereafter are as follows:
Lease Payments
Period from October 1 to December 31, 2023 $ 25,332 
2024 101,326 
2025 101,326 
2026 101,326 
2027 101,326 
Thereafter 1,317,240 
Total $ 1,747,876 
Components of ground lease rent expense
The components of ground lease rent expense, which are included within “Operating expenses” in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022, were as follows:

Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
Amortization of:
Above market ground lease intangibles $ (160) $ (160) $ (480) $ (480)
Below market ground lease intangibles 365  425  1,095  1,274 
Amortization of right-of-use assets 252  256  760  770 
Interest expense 1,038  1,034  3,111  3,101 
Ground lease rent expense $ 1,495  $ 1,555  $ 4,486  $ 4,665 
Undiscounted future rental obligations to be paid under long-term ground and office leases
As of September 30, 2023, undiscounted future rental obligations to be paid under the long-term ground leases by Penney Intermediate Holdings LLC under the terms of the Master Lease on behalf of the Trust, including fixed rental increases, for the next five years and thereafter, are as follows:
Lease Obligations
Period from October 1 to December 31, 2023 $ 1,027 
2024 4,124 
2025 4,116 
2026 4,138 
2027 4,197 
Thereafter 220,159 
Less imputed interest (200,009)
Lease liabilities as of September 30, 2023 $ 37,752