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LEASES
 9 Months Ended
Oct. 31, 2023
Leases  
LEASES

14. LEASES

 

The Trust has operating leases for its corporate offices in Phoenix, Arizona and land leased in Albuquerque, New Mexico, and a cable equipment finance lease in Tucson, Arizona. The Trust’s corporate office lease is month to month. All leases are non-cancelable.

 

Operating Leases

 

The Trust holds a month to month office lease agreement with Northpoint Properties for a commercial office lease at 1730 E Northern Ave, Suite 122, Phoenix, Arizona 85020. Base monthly rent is $4,318. The Trust also pays electricity bills and applicable sales tax.

 

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 nine months ended October 31, 2023:

 

   Nine Months
Ended		 
  

October 31,

2023

 
Operating Lease Costs:     
Operating lease cost*   105,411 

 

* Short term lease costs were immaterial.

 

 

Supplemental cash flow information is as follows:

 

   Nine Months
Ended		 
   October 31,
2023		 
     
Cash paid for amounts included in the measurement of lease liabilities:     
Operating cash flows from operating leases  $(3,443)
      
Lease obligations:     
Operating leases, net  $2,261,529 
Long-term obligations  $2,249,072 

 

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

 

Weighted average remaining lease term (years)  October 31,
2023		 
Operating leases   34 
      
Weighted average discount rate Operating leases   4.85%

 

The aggregate future lease payments for Operating Lease Liability as of October 31, 2023 are as follows:

 

For the Years Ending October 31,     
2024   $33,586 
2025    134,355 
2026    134,367 
2027    134,379 
2028    134,391 
Thereafter    4,127,256 
Total minimum lease payments   $4,698,334 
Less: amount representing interest    2,436,805 
Total present value of minimum payments    2,261,529 
Less: current portion   $12,457 
Long term portion of operating lease liability    2,249,072 

 

 

Finance Leases

 

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

 

The following table presents the Company’s lease costs for the nine months ended October 31, 2023:

 

   Nine Months
Ended		 
   October 31,
2023		 
Finance Lease Costs:     
Amortization of right-of-use assets  $13,874 
Interest on lease obligations   402 

 

Supplemental cash flow information is as follows:

 

   Nine Months
Ended		 
   October 31,
2023		 
     
Cash paid for amounts included in the measurement of lease liabilities:     
Operating cash flows from finance leases  $(2,065)
      
Lease obligations:     
Finance leases, net  $- 
Long-term obligations  $- 

 

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

 

Weighted average remaining lease term (years)  October 31,
2023		 
Finance leases   - 
      
Weighted average discount rate   4.85%
Finance leases     

 

The aggregate future lease payments for Finance Lease Liability as of October 31, 2023 are as follows:

 

For the Years Ending October 31,   - 
2024   - 
2025   - 
Total minimum lease payments  $- 
Less: amount representing interest   - 
Total present value of minimum payments   - 
Less: current portion  $- 
Long term portion of finance lease liability   -