LEASES

3 Months Ended

Apr. 30, 2022

Leases

LEASES

14. LEASES

The Trust has operating leases for its land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. All leases are non-cancelable.

Operating Leases

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 following table presents the Trust’s lease costs for the three months ended April 30, 2022:

	Three Months Ended
	April 30, 2022
Operating Lease Costs:
Operating lease cost*		52,558

* Short term lease costs were immaterial.

Supplemental cash flow information is as follows:

	Three Months Ended
	April 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,027
Lease obligations:
Operating leases, net	$	2,274,647
Long-term obligations	$	2,272,811

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

Weighted average remaining lease term (years)	April 30, 2022
Operating leases		35
Weighted average discount rate Operating leases		4.85	%

The aggregate future lease payments for Operating Lease Liability as of April 30, 2022 are as follows:

For the Years Ending January 31,
2023	$	84,087
2024		112,116
2025		112,116
2026		112,116
2027		112,116
Thereafter		4,927,079
Total minimum lease payments	$	5,459,630
Less: amount representing interest		3,184,983
Total present value of minimum payments		2,274,647
Less: current portion	$	1,836
Long term portion of operating lease liability		2,272,811

Finance Leases

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

The following table presents the Company’s lease costs for the three months ended April 30, 2022:

	Three Months Ended
	April 30, 2022
Finance Lease Costs:
Amortization of right-of-use assets	$	6,937
Interest on lease obligations		603

Supplemental cash flow information is as follows:

	Three Months Ended
	April 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	(241	)
Lease obligations:
Finance leases, net	$	44,940
Long-term obligations	$	15,344

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

Weighted average remaining lease term (years)	April 30, 2022
Finance leases		2
Weighted average discount rate		4.85	%
Finance leases

The aggregate future lease payments for Finance Lease Liability as of April 30, 2022 are as follows:

For the Years Ending January 31,
2023		23,343
2024		23,343
Total minimum lease payments	$	46,686
Less: amount representing interest		1,746
Total present value of minimum payments		44,940
Less: current portion	$	29,596
Long term portion of finance lease liability		15,344