Copper Property CTL Pass Through Trust Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES (Tables)

LEASES (Tables)

12 Months Ended

Dec. 31, 2024

Lease income related to the Trust’s operating leases during the years ended December 31, 2024, 2023 and 2022 is comprised of the following:


	Year ended December 31,
		2024		2023		2022
Lease income related to fixed and variable lease payments
Fixed lease income		$	98,839	$	102,073	$	108,569
Variable lease income (a)		2,140		—		—
Straight-line rental income, net (b)		(2,275)		(2,346)		(2,498)
Ground lease reimbursement income (c)		4,124		4,062		4,015
Other
Amortization of above and below market lease intangibles (d)		(2,444)		(2,207)		(1,691)
Lease income		$	100,384	$	101,582	$	108,395

(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 December 31, 2024, undiscounted lease payments to be received under operating leases, for the next five years and thereafter are as follows:


	Lease Payments
2025	$	95,920
2026	95,920
2027	95,920
2028	95,920
2029	95,920
Thereafter	1,055,122
Total	$	1,534,722

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 years ended December 31, 2024, 2023 and 2022, were as follows:



	Year Ended December 31,
	2024		2023		2022
Amortization of:
Above market ground lease intangibles	$	(641)	$	(641)	$	(641)
Below market ground lease intangibles	1,460		1,460		1,639
Right-of-use assets	1,006		1,012		1,025
Interest expense	4,156		4,150		4,137
Ground lease rent expense	$	5,981	$	5,981	$	6,160

Undiscounted future rental obligations to be paid under long-term ground and office leases

As of December 31, 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
2025	$	4,116
2026	4,138
2027	4,197
2028	4,257
2029	4,335
Thereafter	211,567
Less imputed interest	(194,815)
Lease liabilities as of December 31, 2024	$	37,795