DORCHESTER MINERALS, L.P. Leases Disclosure
| 7. | Leases |
The third amendment to our Office Lease was executed in April 2017 for a term of 129 months, beginning June 1, 2018 and expiring in 2029. At lease commencement, the Partnership concluded the Office Lease was an operating lease. Under the third amendment to the Office Lease, monthly rental payments range from $25,000 to $30,000 and the Partnership received lease incentives of $0.7 million.
Lease expense for the years ended December 31, 2025, 2024 and 2023 was as follows:
| In Thousands | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating lease expense | $ | 262 | $ | 262 | $ | 262 | ||||||
Supplemental cash flow information related to leases was as follows:
| In Thousands | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||
| Operating cash flows from operating leases | $ | 362 | $ | 356 | $ | 350 | ||||||
Supplemental balance sheet information related to leases was as follows:
| 2025 | 2024 | 2023 | ||||||||||
| Weighted-Average Remaining Lease Term (months) | ||||||||||||
| Operating lease | 38 | 50 | 62 | |||||||||
| Weighted-Average Discount Rate | ||||||||||||
| Operating lease | 5 | % | 5 | % | 5 | % | ||||||
Maturities of lease liabilities are as follows:
| In Thousands | ||||
| 2025 | ||||
| 2026 | $ | 368 | ||
| 2027 | 374 | |||
| 2028 | 380 | |||
| 2029 | 63 | |||
| Total lease payments | 1,185 | |||
| Less amount representing interest | (408 | ) | ||
| Total lease obligation | $ | 777 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
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.