Company: INRE
Filing Date: 2025-03-05
Form Type: 10-K
Source: 0000950170-25-033568
Chunk: 81

Company: Inland Real Estate Income Trust, Inc.
Filing Date: 2025-03-05
Form: 10-K
Item: Item 16
Chunk 81
---
        Total
         
        $
        552,455

       Lease ExpenseThe Company is the lessee under one ground lease. The ground lease, which commenced on July 1, 2007, was assumed as part of a property purchased in October 2015 and extends through June 30, 2037 with six 5-year renewal options which the Company assumes will be exercised. When the Company acquired the lease, the Company considered the lease terms and lease classification. As reassessment was not required under practical expedients accorded in ASC 842, the Company has continued to account for 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