Quarterly report pursuant to Section 13 or 15(d)

LEASES (Tables)

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LEASES (Tables)
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Lease income related to operating leases
The disaggregation of the Trust’s lease income as either fixed or variable lease income based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification ("ASC") Topic 842 is as follows:

Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Fixed lease income $ 24,854  $ 25,555  $ 50,038  $ 51,209 
Variable lease income (a) 497  —  1,001  — 
Straight-line rental income, net (b) (572) (588) (1,151) (1,179)
Ground lease reimbursement income (c) 1,027  1,004  2,062  2,016 
Other
Amortization of above and below market lease intangibles (d) (582) (569) (1,143) (1,120)
Lease income $ 25,224  $ 25,402  $ 50,807  $ 50,926 
(a)Variable lease income consists of lease payments based on either an index or a rate.
(b)Represents the impact of straight-line rent (contractual rent exceeds straight-line rent).
(c)Ground lease reimbursement income consists of lease payments due from the tenant for land leased under non-cancellable operating leases.
(d)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 June 30, 2024, undiscounted lease payments to be received under operating leases, excluding amounts resulting from CPI adjustments, for the next five years and thereafter are as follows:

Lease Payments
Period from July 1 to December 31, 2024 $ 49,324 
2025 98,649 
2026 98,649 
2027 98,649 
2028 98,649 
Thereafter 1,183,785 
Total $ 1,627,705 
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 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:
Above market ground lease intangibles $ (160) $ (160) $ (320) $ (320)
Below market ground lease intangibles 365  365  730  730 
Right-of-use assets
 252  253  504  508 
Interest expense 1,038  1,037  2,077  2,073 
Ground lease rent expense $ 1,495  $ 1,495  $ 2,991  $ 2,991 
Undiscounted future rental obligations to be paid under long-term ground and office leases
As of June 30, 2024, 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 July 1 to December 31, 2024 $ 2,062 
2025 4,116 
2026 4,138 
2027 4,197 
2028 4,257 
Thereafter 215,902 
Less imputed interest (196,893)
Lease liabilities as of June 30, 2024 $ 37,779