Copper Property CTL Pass Through Trust Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

LEASES (Tables)

LEASES (Tables)

9 Months Ended

Sep. 30, 2025

The disaggregation of the Trust’s lease income as either fixed or variable lease income based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification ("ASC") Topic 842 is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Fixed lease income	$	23,485	$	24,660	$	71,283	$	74,698
Variable lease income (a)	949		493		2,880		1,494
Straight-line rental income, net (b)	(540)		(568)		(1,640)		(1,719)
Ground lease reimbursement income (c)	1,027		1,027		3,080		3,089
Other
Amortization of above and below market lease intangibles (d)	(714)		(617)		(2,177)		(1,760)
Lease income	$	24,207	$	24,995	$	73,426	$	75,802

(a)Variable lease income consists of lease payments based on either an index or a rate.

(b)Represents the impact of straight-line rent (contractual rent exceeds straight-line rent).

(c)Ground lease reimbursement income consists of lease payments due from the tenant for land leased under non-cancellable operating leases.

(d)Represents above and below market lease amortization recognized straight-line over the lease term.

Undiscounted lease payments to be received under operating leases

As of September 30, 2025, undiscounted lease payments to be received under operating leases, excluding amounts resulting from CPI adjustments, for the next five years and thereafter are as follows:


	Lease Payments
Period from October 1 to December 31, 2025	$	23,603
2026	94,410
2027	94,410
2028	94,410
2029	94,410
2030	94,410
Thereafter	944,103
Total	$	1,439,756

Components of ground lease rent expense

The components of ground lease rent expense, which are included within “Operating expenses” in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Amortization of:
Above market ground lease intangibles	$	(160)	$	(160)	$	(480)	$	(480)
Below market ground lease intangibles	318		365		995		1,095
Right-of-use assets	250		251		752		755
Interest expense	1,040		1,039		3,119		3,116
Ground lease rent expense	$	1,448	$	1,495	$	4,386	$	4,486

Undiscounted future rental obligations to be paid under long-term ground and office leases

As of September 30, 2025, undiscounted future rental obligations to be paid under the long-term ground leases by Penney Intermediate Holdings LLC under the terms of the Master Lease on behalf of the Trust, including fixed rental increases for the next five years and thereafter, are as follows:


	Lease Obligations
Period from October 1 to December 31, 2025	$	1,035
2026	4,136
2027	4,195
2028	4,255
2029	4,334
2030	4,327
Thereafter	207,216
Less imputed interest	(191,677)
Lease liabilities as of September 30, 2025	$	37,821