XML 22 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
Real Estate
 9 Months Ended
Sep. 30, 2022
Real Estate [Abstract]  
Real Estate Real Estate
As of September 30, 2022, the Company owned 31 properties located in 12 states. The following table presents the Company's real estate portfolio as of September 30, 2022 (dollars in thousands):
TenantMarketSite TypeLandBuilding and ImprovementsTotal Real EstateAccumulated DepreciationNet Real Estate
AcreageConnecticutDispensary$395 $534 $929 $(53)$876 
AcreageMassachusetts Cultivation481 9,310 9,791 (816)8,975 
AcreagePennsylvaniaCultivation952 9,209 10,161 (778)9,383 
Ayr Wellness, Inc.NevadaCultivation1,002 12,577 13,579 (109)13,470 
Ayr Wellness, Inc.PennsylvaniaCultivation2,964 11,565 14,529 (116)14,413 
Bloom MedicinalMissouriCultivation598 11,167 11,765 (50)11,715 
Calypso EnterprisesPennsylvaniaCultivation1,486 28,514 30,000 (167)29,833 
Columbia CareCaliforniaDispensary1,082 2,692 3,774 (133)3,641 
Columbia CareIllinoisDispensary162 1,053 1,215 (50)1,165 
Columbia CareIllinoisCultivation801 10,560 11,361 (508)10,853 
Columbia CareMassachusettsDispensary108 2,212 2,320 (118)2,202 
Columbia CareMassachusettsCultivation1,136 12,690 13,826 (809)13,017 
Cresco LabsIllinoisCultivation276 50,456 50,732 (3,921)46,811 
CuraleafConnecticutDispensary184 2,748 2,932 (141)2,791 
CuraleafFloridaCultivation388 75,595 75,983 (3,626)72,357 
CuraleafIllinoisDispensary69 525 594 (28)566 
CuraleafIllinoisDispensary65 959 1,024 (53)971 
CuraleafIllinoisDispensary606 1,128 1,734 (61)1,673 
CuraleafIllinoisDispensary281 3,072 3,353 (161)3,192 
CuraleafNorth DakotaDispensary779 1,395 2,174 (80)2,094 
CuraleafOhioDispensary574 2,788 3,362 (170)3,192 
CuraleafPennsylvaniaDispensary877 1,041 1,918 (71)1,847 
CuraleafPennsylvaniaDispensary216 2,011 2,227 (105)2,122 
Greenlight
'(1)
ArkansasDispensary238 1,919 2,157 (101)2,056 
MintArizonaCultivation2,400 9,032 11,432 — 11,432 
MintMassachusetts Cultivation380 1,569 1,949 — 1,949 
Organic RemediesMissouriCultivation204 20,615 20,819 (825)19,994 
PharmaCannMassachusettsDispensary411 1,701 2,112 (158)1,954 
PharmaCannPennsylvaniaDispensary44 1,271 1,315 (61)1,254 
Revolutionary ClinicsMassachusetts Cultivation926 41,934 42,860 (1,559)41,301 
TrulievePennsylvaniaCultivation1,061 43,209 44,270 (1,929)42,341 
Total Real Estate$21,146 $375,051 $396,197 $(16,757)$379,440 
(1) GL Partners, Inc. (Greenlight) took over as tenant however Curaleaf remains the guarantor subject to certain conditions in the lease agreement.
Real Estate Acquisitions
During the nine months ended September 30, 2022, the Company invested approximately $65.4 million to acquire four cultivation facilities. The following table presents the real estate acquisitions for the nine months ended September 30, 2022 (in thousands):
TenantMarketSite TypeClosing DateReal Estate Acquisitions
Bloom MedicinalMissouriCultivationApril 1, 2022$7,301 
(1)
Ayr Wellness, Inc.PennsylvaniaCultivationJune 30, 202214,529 
Ayr Wellness, Inc.NevadaCultivationJune 30, 202213,579 
Calypso EnterprisesPennsylvaniaCultivationAugust 5, 202230,000 
(2)
Total$65,409 
(1)Includes $5.0 million of TI funded at closing of the property.
(2)The Company entered into a $30.0 million mortgage loan on October 29, 2021, which converted to a 20-year sale-leaseback on August 5, 2022.

Tenant Improvements Funded
During the nine months ended September 30, 2022, the Company funded approximately $43.5 million of tenant improvements. The following table presents the tenant improvements funded for the nine months ended September 30, 2022 (in thousands):
TenantMarketSite TypeClosing DateTI FundedUnfunded Commitments
CuraleafFloridaCultivationAugust 4, 2020$20,983 
(1)
$— 
MintMassachusetts CultivationApril 1, 2021349 — 
(4)
MintArizonaCultivationJune 24, 20215,906 
(2)
3,063 
PharmaCannMassachusettsDispensaryMarch 17, 202125 — 
TrulievePennsylvaniaCultivationMarch 17, 20217,046 
(3)
— 
Organic RemediesMissouriCultivationDecember 20, 20214,745 282 
Bloom MedicinalMissouriCultivationApril 1, 20224,464 752 
(5)
Ayr Wellness, Inc.PennsylvaniaCultivationJune 30, 2022— 750 
$43,518 $4,847 
(1)On June 16, 2022, the Company funded the expansion of an existing property.
(2)The tenant has been paying rent on the remaining commitment since July 2022 in accordance with the lease agreement.
(3)The tenant had been paying rent on the TI since December 2021 in accordance with the lease agreement. As of May 2022, the TI had been fully funded.
(4)Does not include approximately $2.7 million of commitments that the Company was released from its' commitment to fund subsequent to September 30, 2022.
(5)The $0.8 million of unfunded commitments does not include a $16.5 million option but not obligation to acquire an adjacent property from an existing tenant.
Disposal of Real Estate
On March 21, 2022, the Company sold one of our PharmaCann Massachusetts properties for approximately $0.8 million. The Company recognized a loss on sale of the property of $60 thousand. The Company continues 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.
Construction in Progress
Construction in progress was $10.6 million and $13.1 million on September 30, 2022 and December 31, 2021, respectively, and is included in "Buildings and Improvements" in the accompanying consolidated balance sheet.
Depreciation and Amortization
Depreciation expense for the three months ended September 30, 2022 and 2021, was $3.1 million and $2.0 million, respectively and for the nine months ended September 30, 2022 and 2021 it was $7.6 million and $4.5 million, respectively.
Amortization of the Company’s acquired in-place lease intangible assets for the three months ended September 30, 2022 and 2021 was approximately $0.5 million and $0.5 million, respectively and was approximately $1.5 million and $1.1 million, respectively, for the nine months ended September 30, 2022 and 2021. The acquired in-place lease intangible assets have a weighted average remaining amortization period of 11.4 years.
Depreciation and Amortization
The following table presents the future amortization of the Company’s acquired in-place leases as of September 30, 2022 (in thousands):
YearExpense
2022 (three months ending December 31, 2022)$503 
20232,013 
20242,013 
20252,013 
20262,013 
Thereafter13,937 
Total$22,492 
The following table presents the future contractual minimum rent under the Company’s operating leases as of September 30, 2022 (in thousands):
YearRent
2022 (three months ending December 31, 2022)$12,014 
202348,858 
202450,153 
202551,447 
202652,774 
Thereafter610,900 
Total$826,146 
Concentration of Credit Risk
The ability of any of our tenants to honor the terms of its lease are dependent upon the economic, regulatory, competitive, natural and social factors affecting the community in which that tenant operates.
The following table presents the tenants in our portfolio that represented the largest percentage of our total rental income for each of the periods presented:

For the Three Months Ended September 30,
20222021
Number of LeasesPercentage of Rental IncomeNumber of LeasesPercentage of Rental Income
Curaleaf1024 %1129 %
Cresco Labs114 %119 %
Revolutionary Clinics111 %116 %
Trulieve111 %112 %
Columbia Care59 %513 %
Acreage36 %39 %
Organic Remedies15 %N/AN/A
AYR26 %N/AN/A
Calypso15 %N/AN/A
For the Nine Months Ended September 30,
20222021
Number of LeasesPercentage of Rental IncomeNumber of LeasesPercentage of Rental Income
Curaleaf1024 %1134 %
Cresco Labs116 %124 %
Revolutionary Clinics113 %17 %
Trulieve 113 %110 %
Columbia Care510 %511 %
Acreage37 %311 %
Organic Remedies16 %N/AN/A
Impairment
The Company reviewed tenant activities and changes in the business condition of all of its properties and did not identify the existence of any triggering events or impairment indicators. Accordingly, as of September 30, 2022 and December 31, 2021 no impairment losses were recognized.