ACRES Commercial Realty Corp. Leases Disclosure
NOTE 9 - LEASES
In addition to the leases discussed in Note 8, the Company has operating leases for office space and office equipment. The leases have terms that expire between February 2029 and September 2029. The leases on the office space and office equipment contain options for early termination granted to the Company and the lessor. Lease payments are determined as follows:
The following table summarizes the Company’s operating leases (in thousands):
|
|
December 31, 2024 |
|
|
December 31, 2023 |
|
||
Operating Leases: |
|
|
|
|
|
|
||
Right of use assets |
|
$ |
606 |
|
|
$ |
693 |
|
|
$ |
(653 |
) |
|
$ |
(738 |
) |
|
|
|
|
|
|
|
|
||
Weighted average remaining lease term: |
|
4.7 years |
|
|
5.8 years |
|
||
Weighted average discount rate (1): |
|
|
8.70 |
% |
|
|
8.70 |
% |
The following table summarizes the Company’s operating lease costs and cash payments during the periods indicated (in thousands):
|
|
Year Ended December 31, 2024 |
|
|
Year Ended December 31, 2023 |
|
|
Year Ended December 31, 2022 |
|
|||
Lease Cost: |
|
|
|
|
|
|
|
|
|
|||
Operating lease cost |
|
$ |
160 |
|
|
$ |
194 |
|
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
|||
Other Information: |
|
|
|
|
|
|
|
|
|
|||
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
|
|
|
|
|
|
|||
Operating cash flows from operating leases |
|
$ |
155 |
|
|
$ |
151 |
|
|
$ |
94 |
|
The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands):
|
|
Operating Leases |
|
|
2025 |
|
$ |
162 |
|
2026 |
|
|
166 |
|
2027 |
|
|
170 |
|
2028 |
|
|
174 |
|
2029 |
|
|
131 |
|
Thereafter |
|
|
— |
|
Subtotal |
|
|
803 |
|
Less: impact of discount |
|
|
(150 |
) |
|
$ |
653 |
|
|
Want the next ACRES Commercial Realty Corp. leases disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment ACRES Commercial Realty Corp.'s next filing hits EDGAR. No credit card, your email never gets sold.
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.