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LEASES
 6 Months Ended
Jul. 31, 2022
Leases  
LEASES

14. LEASES

 

The Trust has operating leases for its land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. All leases are non-cancelable.

 

Operating Leases

 

The Trust’s Albuquerque Hotel is subject to non-cancelable ground lease. The Albuquerque Hotel non-cancelable ground lease was extended on January 14, 2014 and expires in 2058.

 

The following table presents the Trust’s lease costs for the six months ended July 31, 2022:

 

      
   Six Months
Ended		 
   July 31, 2022 
Operating Lease Costs:     
Operating lease cost*   (24,080)

 

  * Short term lease costs were immaterial.

 

 

Supplemental cash flow information is as follows:

 

      
   Six Months
Ended		 
   July 31, 2022 
     
Cash paid for amounts included in the measurement of lease liabilities:     
Operating cash flows from operating leases  $(82,836)
      
Lease obligations:     
Operating leases, net  $2,291,379 
Long-term obligations  $2,267,645 

 

Weighted average remaining lease terms and discount rates were as follows:

 

Weighted average remaining lease term (years)  July 31, 2022 
Operating leases   35 
      
Weighted average discount rate Operating leases   4.85%

 

The aggregate future lease payments for Operating Lease Liability as of July 31, 2021 are as follows:

 

      
For the Years Ending July 31,    
2023  $67,171 
2024   134,342 
2025   134,355 
2026   134,367 
2027   134,379 
Thereafter   4,261,650 
Total minimum lease payments  $4,866,264 
Less: amount representing interest   2,574,885 
Total present value of minimum payments   2,291,379 
Less: current portion  $23,734 
Long term portion of operating lease liability   2,267,645 

 

 

Finance Leases

 

The Company’s Tucson Oracle Hotel is subject to non-cancelable cable lease. The Tucson Oracle Hotel non-cancelable cable lease expires in 2023.

 

The following table presents the Company’s lease costs for the three months ended July 31, 2022:

 

      
   Six Months
Ended		 
   July 31, 2022 
Finance Lease Costs:     
Amortization of right-of-use assets  $13,874 
Interest on lease obligations   1,119 

 

Supplemental cash flow information is as follows:

 

      
   Six Months
Ended		 
   July 31, 2022 
     
Cash paid for amounts included in the measurement of lease liabilities:     
Operating cash flows from finance leases  $(570)
      
Lease obligations:     
Finance leases, net  $37,674 
Long-term obligations  $7,718 

 

Weighted average remaining lease terms and discount rates were as follows:

 

Weighted average remaining lease term (years)   July 31, 2022  
Finance leases     2  
         
Weighted average discount rate     4.85 %
Finance leases        

 

The aggregate future lease payments for Finance Lease Liability as of July 31, 2022 are as follows:

 

         
For the Years Ending July 31,      
2023     15,562  
2024     23,342  
Total minimum lease payments   $ 38,904  
Less: amount representing interest     1,230  
Total present value of minimum payments     37,674  
Less: current portion   $ 29,956  
Long term portion of finance lease liability     7,718