Annual report pursuant to Section 13 and 15(d)

Lease Revenues

Lease Revenues
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
The following table sets forth the components of our lease revenue for the years ended December 31, 2020 and 2019 (dollars in thousands, except for footnotes):
For the Years Ended December 31,
2020 2019
Fixed lease payments(1)
$ 51,377  $ 38,168 
Variable lease payments(2)
5,654  2,524 
Lease revenue, net(3)
$ 57,031  $ 40,692 
(1)Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the respective lease terms and includes the amortization of above-market lease values and lease incentives and the accretion of below-market lease values and other deferred revenue.
(2)Variable lease payments include participation rents, which are generally based on a percentage of the gross crop revenues earned on the farm, and reimbursements of certain property operating expenses by tenants. Participation rents are generally recognized when all contingencies have been resolved and when actual results become known or estimable, enabling us to estimate and/or measure our share of such gross revenues. During the years ended December 31, 2020 and 2019, we recorded participation rents of approximately $2.4 million and $2.3 million respectively, and reimbursements of certain property operating expenses by tenants of approximately $457,000 and $198,000, respectively. In addition, during the year ended December 31, 2020, we received a lease termination payment of approximately $3.0 million.
(3)Reflected as a line item on our accompanying Consolidated Statements of Operations and Comprehensive Income.