Company: INRE
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0000950170-25-033568
Chunk: 416

Company: Inland Real Estate Income Trust, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 8
Chunk 416
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 the ground lease as an operating lease with an established lease term and payment schedule. The lease liability was based on the present value of the ground lease’s future lease payments using an interest rate of 6.225% which the Company considered reasonable and within the range of the Company’s incremental borrowing rate. For the years ended December 31, 2024, 2023 and 2022, total rent expense was $1,944, $1,944 and $1,944, respectively, recorded in property operating expenses on the consolidated statements of operations and comprehensive income (loss). 

94

INLAND REAL ESTATE INCOME TRUST, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTSDecember 31, 2024(Dollar amounts in thousands, except per share amounts) 

Lease payments for the ground lease as of December 31, 2024 for each of the five succeeding years and thereafter is as follows: 

        LeasePayments

        2025
         
        $
        1,264

        2026

        1,264

        2027

        1,332

        2028

        1,401

        2029

        1,401

        Thereafter

        80,451

        Total undiscounted lease payments

        87,113

        Less: Amount representing interest

        (61,827
        )

        Present value of lease liability
         
        $
        25,286

       As of December 31, 2024, the Company’s accounts and rent receivable, net balance was $23,355, which was net of an allowance for bad debts of $1,044. As of December 31, 2023, the Company’s accounts and rent receivable, net balance was $23,645, which was net of an allowance for bad debts of $871.

NOTE 14 – FAIR VALUE MEASUREMENTSFair Value HierarchyThe Company defines fair value based on the price that it believes would be received upon sale of an asset or the exit price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value. The fair value hierarchy consists of three broad levels, which are described below: 

      Level 1 −
       
      Quoted prices in active markets for identical assets