Note 3 - Real Estate

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Real Estate Disclosure [Text Block]

Note 3 - REAL ESTATE

Tenant Improvements Funded

During the three months ended March 31, 2022, we funded approximately $3.2 million of tenant improvements at our Missouri property leased to Organic Remedies, which resulted in an increase in rent at the property.

During the three months ended March 31, 2022 we funded approximately $0.2 million of tenant improvements at our Massachusetts property leased to the Mint which resulted in an increase in rent at the property.

Lease Amendments and Disposal of Real Estate

On March 21, 2022, we sold our PharmaCann Massachusetts property for approximately $0.8 million. We recognized a loss on sale of the property of $60,113. We continue to collect the rent that would have been received from the PharmaCann Massachusetts property through increased lease payments from each of the remaining properties operated by PharmaCann in our portfolio.

Depreciation expense was approximately $2.2 million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively. 

Amortization of the Company’s acquired in-place lease intangible assets were approximately $0.5 million and $0.1 million for the three months ended March 31, 2022 and 2021, respectively. Acquired in-place lease intangible assets have a weighted average remaining amortization period of 11.9 years.

Future amortization of the Company’s acquired in-place leases as of March 31, 2022, is as follows (in thousands):

Year	Amortization Expense
2022 (nine months ending December 31, 2022)	$	1,509
2023		2,013
2024		2,013
2025		2,013
2026		2,013
Thereafter		13,937
Total	$	23,498

Future contractual minimum rent under the Company’s operating leases as of March 31, 2022 for future periods is summarized as follows (in thousands):

Year	Contractual Minimum Rent
2022 (nine months ending December 31, 2022)	$	28,373
2023		39,240
2024		40,294
2025		41,330
2026		42,394
Thereafter		440,309
Total	$	631,940