LEASES

12 Months Ended

Jan. 31, 2022

Leases

LEASES

16. LEASES

The Trust has operating leases for its corporate offices in Phoenix, Arizona and land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. The Trust’s corporate office lease includes options to extend or terminate the leases and the Trust includes these options in the lease term when it is reasonably certain to exercise that option. All leases are non-cancelable.

Operating Leases

On August 4, 2017, the Trust entered into a five-year office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020 commencing on September 1, 2017. Base monthly rent of $4,100 increases 6% on a yearly basis. No rent is due for July 2022. The Trust also agreed to pay electricity and applicable sales tax. The office lease was renewed in March, 2022 on a month to month basis.

The Trust’s Albuquerque Hotel is subject to non-cancelable ground lease. The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058.

The Trust’s Operating Lease costs recognized in the consolidated statement of operations for the year ended January 31, 2022 consist of the following:

	Fiscal Year Ended
	January 31, 2022
Operating Lease Costs:
Operating lease cost*		169,322

Supplemental cash flow information is as follows:

	Fiscal Year Ended
	January 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	28,171
Lease obligations:
Operating leases, net	$	2,310,745
Long-term obligations	$	2,273,278

Weighted average remaining lease terms and discount rates were as follows:

Weighted average remaining lease term (years)	January 31, 2022
Operating leases		36
Weighted average discount rate		4.85	%
Operating leases

Finance Leases

The Company’s Tucson Oracle Hotel is subject to non-cancelable cable lease that expires in 2023.

The Trust’s Finance Lease costs recognized in the Consolidated Statement of Income for the Fiscal Year ended January 31, 2022 consist of the following:

	Fiscal Year Ended
	January 31, 2022
Finance Lease Costs:
Amortization of right-of-use assets	$	20,812
Interest on lease obligations		2,576

Supplemental cash flow information is as follows:

	Fiscal Year Ended
	January 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	(109	)
Lease obligations:
Finance leases, net	$	52,118
Long-term obligations	$	22,878

Weighted average remaining lease terms and discount rates were as follows:

Weighted average remaining lease term (years)	January 31, 2022
Finance leases		2
Weighted average discount rate		4.85	%
Finance leases

The aggregate future lease payments for Finance Lease Liability as of January 31, 2022 are as follows:

For the Years Ending January 31,
2023		31,123
2024		23,343
Total minimum lease payments	$	54,466
Less: amount representing interest		2,348
Total present value of minimum payments		52,118
Less: current portion	$	29,240
Long term portion of finance lease liability		22,878

The aggregate annual lease obligations at January 31, 2022 are as follows:

Fiscal Year	Operating Leases		Finance Leases
2023	$	148,348	$	31,123
2024		112,116		23,343
2025		112,116
2026		112,116
2027		112,116
Thereafter		4,927,079
Total Undiscounted Lease Obligations		5,523,891		54,466
Less Imputed Interest		3,213,146		29,240
Net Lease Obligations	$	2,310,745	$	25,226