DEFERRED RENTS RECEIVABLE |
3 Months Ended |
|---|---|
Mar. 31, 2025 | |
| Lessor Disclosure [Abstract] | |
| DEFERRED RENTS RECEIVABLE | DEFERRED RENTS RECEIVABLE Through February 28, 2025, the Company was the lessor under operating leases which contained escalating rents over time, rent holidays, options to renew, and requirements to pay property taxes, insurance and/or maintenance costs. The Company leased a cannabis cultivation, processing and dispensary facility that it owns in Delaware to FSC under a triple net lease that expired. The Company also subleased two properties - a cannabis production facility with offices under a sublease that expired in January 2026 and contained an option to negotiate an extension of the sublease term, and a dispensary under a sublease that expired in April 2027. The Company also subleased a portion of a third property that it developed into a cultivation facility under a sublease that expired in March 2030, with an option to extend the term for three additional five-year periods. These properties were all subleased to FSC, which the Company acquired on March 1, 2025 (see Note 2). In connection with the FSC Acquisition, the Company ceased recognizing rental income from these properties.
The Company recognized fixed rental receipts from such lease agreements on a straight-line basis over the expected lease term. Differences between amounts received and amounts recognized were recorded in Deferred rents receivable in the condensed consolidated balance sheets. The Company is not the lessor under any finance leases.
The Company received rental payments aggregating $0.2 million and $0.3 million in the three months ended March 31, 2025 and 2024, respectively. These payments were recognized as revenue on a straight-line basis and aggregated $0.2 million and $0.3 million in the three months ended March 31, 2025 and 2024, respectively.
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