Copper Property CTL Pass Through Trust Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES (Tables)

LEASES (Tables)

12 Months Ended

Dec. 31, 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:


	Year ended December 31,
		2025		2024		2023
Lease income related to fixed and variable lease payments
Fixed lease income		$	94,464	$	98,839	$	102,073
Variable lease income (a)		3,979		2,140		—
Straight-line rental income, net (b)		(2,175)		(2,275)		(2,346)
Ground lease reimbursement income (c)		4,115		4,124		4,062
Other
Amortization of above and below market lease intangibles (d)		(2,858)		(2,444)		(2,207)
Lease income		$	97,525	$	100,384	$	101,582

(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 December 31, 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
2026	$	92,848
2027	92,848
2028	92,848
2029	92,848
2030	92,848
Thereafter	928,474
Total	$	1,392,714

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 years ended December 31, 2025, 2024 and 2023, were as follows:



	Year Ended December 31,
	2025		2024		2023
Amortization of:
Above market ground lease intangibles	$	(641)	$	(641)	$	(641)
Below market ground lease intangibles	1,313		1,460		1,460
Right-of-use assets	1,002		1,006		1,012
Interest expense	4,159		4,156		4,150
Ground lease rent expense	$	5,833	$	5,981	$	5,981

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

As of December 31, 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
2026	$	4,136
2027	4,195
2028	4,255
2029	4,334
2030	4,327
Thereafter	207,216
Less imputed interest	(190,636)
Lease liabilities as of December 31, 2025	$	37,827