Copper Property CTL Pass Through Trust Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT PROPERTIES

INVESTMENT PROPERTIES

6 Months Ended

Jun. 30, 2021

As of the Effective Date, the Trust obtained control of a real estate portfolio that consists of 160 Retail Properties and six Warehouses located across 37 U.S. states and Puerto Rico. The January 30, 2021 balance sheet reflects the allocation of fair value to the assets and liabilities that existed on the Effective Date and emergence from bankruptcy.

The following table summarizes the allocated fair value by property type as of the Effective Date, including Retail Properties classified as held for sale:


Property Type	Ownership	Square Footage	Fair Value
Retail	Fee Simple	18,326	$	1,234,100
	Ground Leasehold	3,386	203,208
Warehouse	Fee Simple	10,109	497,900
		31,821	$	1,935,208

As of the Effective Date, the weighted average amortization period for lease intangible assets and lease intangible liabilities was 19.9 years.

The following table presents the amortization during the next five years and thereafter related to the lease intangible assets and liabilities for properties owned as of June 30, 2021, excluding Retail Properties classified as held for sale:


	Period from July 1 to December 31, 2021		2022		2023		2024		2025		Thereafter		Total
Amortization of:
Above market lease intangibles (a)	$	4,174	$	8,347	$	8,347	$	8,347	$	8,347	$	125,204	$	162,766
In-place lease intangibles (a)	3,558		7,116		7,116		7,116		7,116		106,744		138,766
Lease intangible assets, net (b)	$	7,732	$	15,463	$	15,463	$	15,463	$	15,463	$	231,948	$	301,532

Below market lease intangibles (a)	$	4,043	$	8,086	$	8,086	$	8,086	$	8,086	$	121,296	$	157,683
Lease intangible liabilities, net (b)	$	4,043	$	8,086	$	8,086	$	8,086	$	8,086	$	121,296	$	157,683

(a) Represents the portion of the leases in which the Trust is the lessor. The amortization of above and below market lease intangibles is recorded as an adjustment to lease income and the amortization of in-place lease intangibles is recorded to depreciation and amortization expense.

(b) Lease intangible assets, net and lease intangible liabilities, net are presented net of $6,575 and $3,518 of accumulated amortization, respectively, as of June 30, 2021.

Amortization expense pertaining to in-place lease intangibles was $1,833 for the three months ended June 30, 2021 and $3,055 from the Effective Date to June 30, 2021.

Amortization pertaining to above market lease intangibles of $2,112 for the three months ended June 30, 2021 and $3,519 from the Effective Date to June 30, 2021, was recorded as a reduction to “Lease income” in the accompanying consolidated statements of operations. Amortization pertaining to below market lease intangibles of $2,111 for the three months ended June 30, 2021 and $3,518 from the Effective Date to June 30, 2021, was recorded as an increase to “Lease income” in the accompanying consolidated statements of operations.