BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Estimated Useful Lives of Real Estate Investment Assets

Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows:

Buildings and improvements	15 - 40 years
Furniture, fixtures, and equipment	3 - 5 years
Tenant improvements	Lesser of useful life or lease term

Schedule of Deferred Rent Receivables and Charges, Net

As of December 31, 2021 and 2020, deferred rent receivable and charges, net consist of the following:

	December 31, 2021		December 31, 2020
	(in thousands)
Deferred rent receivable	$	20,870	$	20,470
Deferred leasing costs, net of accumulated amortization of $8,971 and $7,742, respectively	8,453		8,950
Deferred offering costs	6,281		6,046
Other deferred costs	491		490
Deferred rent receivable and charges, net	$	36,095	$	35,956

Schedule of Recognized Rental Income

For the years ended December 31, 2021 and 2020, the Company recognized rental income as follows:

	Year Ended December 31,
	2021		2020
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	45,773	$	50,245
Variable lease payments (2)	7,065		4,578
Rental and other property income	$	52,838	$	54,823

(1)Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.

(2)Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from the Company’s operating leases plus cash payments from tenants deemed not probable of collections.

Reconciliation of Hotel Revenue

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 16:

	Year Ended December 31,
	2021		2020
	(in thousands)
Hotel properties
Hotel income	$	16,722	$	11,882
Rental and other property income	1,070		1,353
Interest and other income	57		79
Hotel revenues	$	17,849	$	13,314