LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease income related to operating leases

Lease income related to the Trust’s operating leases during the years ended December 31, 2023, 2022, and the period from the Effective Date to December 31, 2021 is comprised of the following:

	Year ended December 31, 2023		Year ended December 31, 2022		Period from the Effective Date to December 31, 2021
Lease income related to fixed and variable lease payments
Base rent	$	102,073	$	108,569	$	85,575
Straight-line rental income, net (a)	(2,346)		(2,498)		58,037
Ground lease reimbursement income (b)	4,062		4,015		3,717
Other
Amortization of above and below market lease intangibles (c)	(2,207)		(1,691)		(405)
Lease income	$	101,582	$	108,395	$	146,924

(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 December 31, 2023, undiscounted lease payments to be received under operating leases, for the next five years and thereafter are as follows:

	Lease Payments
2024	$	100,978
2025	100,978
2026	100,978
2027	100,978
2028	100,978
Thereafter	1,211,738
Total	$	1,716,628

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, 2023 and 2022, and the period from the Effective Date to December 31, 2021, were as follows:

	Year ended December 31, 2023		Year ended December 31, 2022		Period from the Effective Date to December 31, 2021
Amortization of:
Above market ground lease intangibles	$	(641)	$	(641)	$	(587)
Below market ground lease intangibles	1,460		1,639		1,609
Right-of-use assets	1,012		1,025		950
Interest expense	4,150		4,137		3,810
Ground rent lease expense	$	5,981	$	6,160	$	5,782

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

As of December 31, 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
2024	$	4,124
2025	4,116
2026	4,138
2027	4,197
2028	4,257
Thereafter	215,902
Less imputed interest	(198,971)
Lease liabilities as of December 31, 2023	$	37,763