Copper Property CTL Pass Through Trust Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT PROPERTIES

INVESTMENT PROPERTIES

6 Months Ended

Jun. 30, 2024

As of June 30, 2024, the Trust's real estate portfolio consisted of 126 Retail Properties across 35 U.S. states and Puerto Rico.

The following table presents the amortization during the next five years and thereafter related to the lease intangible assets and liabilities for properties owned as of June 30, 2024:


	Period from July 1 to December 31, 2024		2025		2026		2027		2028		Thereafter		Total
Amortization of:
Above market lease intangibles (a)	$	3,775	$	7,550	$	7,550	$	7,550	$	7,550	$	90,607	$	124,582
In-place lease intangibles (a)	2,326		4,653		4,653		4,653		4,653		55,831		76,769
Lease intangible assets, net (b)	$	6,101	$	12,203	$	12,203	$	12,203	$	12,203	$	146,438	$	201,351

Below market lease intangibles (a)	$	2,589	$	5,177	$	5,177	$	5,177	$	5,177	$	62,127	$	85,424
Lease intangible liabilities, net (b)	$	2,589	$	5,177	$	5,177	$	5,177	$	5,177	$	62,127	$	85,424

(a)Represents the portion of the leases in which the Trust is the lessor. The amortization of above market lease intangibles is recorded as a reduction to lease income, and the amortization of below market lease intangibles is recorded as an increase to lease income. The amortization of in-place lease intangibles is recorded to depreciation and amortization expense.

(b)As of June 30, 2024, lease intangible assets, net and lease intangible liabilities, net are presented net of $41,694 and $17,689 of accumulated amortization, respectively. As of December 31, 2023, lease intangible assets, net and lease intangible liabilities, net are presented net of $36,373 and $15,969 of accumulated amortization, respectively.

As of June 30, 2024 and December 31, 2023, the weighted average amortization period for lease intangible assets and lease intangible liabilities was 16.5 years and 17.0 years, respectively.

Amortization for the three and six months ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Amortization of:
In-place lease intangibles	$	1,173	$	1,208	$	2,362	$	2,423
Above market lease intangibles	$	1,888	$	1,957	$	3,798	$	3,913
Below market lease intangibles	$	1,306	$	1,387	$	2,655	$	2,793

Dispositions

The following table summarizes the disposition activity for the six months ended June 30, 2024:


Sale Date	Location	Property Type	Ownership	Square Footage	Gross Sales Proceeds		Aggregate Proceeds, Net		Gain (Loss)
3/15/24	Transnational Portfolio (1)	Retail	Fee Simple	302	$	16,459	$	16,096	$	1,497
6/10/24	Roseville, CA	Retail	Fee Simple	167	13,364		13,113		1,029
				469	$	29,823	29,209		$	2,526

(1) Portfolio comprised of three Retail Properties located in Newnan, GA, Aurora, CO, and Kissimmee, FL.

During the six months ended June 30, 2024, gain on sales of investment properties, net was $2,450, which includes a gain of $2,526 from the disposition of Retail Properties in Newnan, GA, Aurora, CO, Kissimmee, FL and Roseville, CA, a gain of $78 in proceeds released from escrow due to a disposition that occurred in December 2022 and $154 of selling expenses from prior period dispositions.

The following table summarizes the disposition activity during the six months ended June 30, 2023:


Sale Date	Location	Property Type	Ownership	Square Footage	Gross Sales Proceeds		Aggregate Proceeds, Net		Gain (Loss)
3/22/23	Temecula, CA	Retail	Fee Simple	125	$	6,000	$	5,869	$	(496)
				125	$	6,000	5,869		$	(496)

During the six months ended June 30, 2023, gain on sales of investment properties, net was $828, which includes a gain of $1,326 less $2 of selling expenses released from escrow due to a disposition that occurred in December 2021 and a loss of $496 from the disposition of the Retail Property in Temecula, California.

The dispositions completed during the six months ended June 30, 2024 and 2023 did not qualify for discontinued operations treatment and are not considered individually significant.

Impairment of Investment Properties

For the six months ended June 30, 2024 and 2023, no impairment charges were recorded.

Investment Properties Held for Sale

As of June 30, 2024 and December 31, 2023, there were no properties classified as held for sale.