Leased Properties and Leases (Tables)
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6 Months Ended |
Jun. 30, 2016 |
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| Leases [Abstract] |
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| Significant leased properties, major tenants and lease terms |
The following table summarizes our significant leased properties, major tenants and lease terms:
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Summary of Leased Properties, Major Tenants and Lease Terms |
Property |
Grand Isle Gathering System |
Pinedale LGS(1)
|
Portland Terminal Facility |
Location |
Gulf of Mexico/Louisiana |
Pinedale, WY |
Portland, OR |
Tenant |
Energy XXI GIGS Services, LLC |
Ultra Wyoming LGS, LLC |
Arc Terminals Holdings LLC |
Asset Description |
Approximately 153 miles of offshore pipeline with total capacity of 120 thousand Bbls/d, including a 16-acre onshore terminal and saltwater disposal system |
Approximately 150 miles of pipelines and four central storage facilities |
A 42-acre rail and marine facility property adjacent to the Willamette River with 84 tanks and total storage capacity of approximately 1.5 million barrels |
Date Acquired |
June 2015 |
December 2012 |
January 2014 |
Initial Lease Term |
11 years |
15 years |
15 years |
Renewal Option |
equal to the lesser of 9-years or 75 percent of the remaining useful life |
5-year terms |
5-year terms |
Current Monthly Rent Payments |
7/1/15 - 7/30/16: $2,625,417
7/1/16 - 7/30/17: $2,826,250 |
$1,723,833 |
$513,355 |
|
Initial Estimated
Useful Life
|
30 years |
26 years |
30 years |
(1) Non-Controlling Interest Partner - Prudential funded a portion of the Pinedale LGS acquisition and, as a limited partner, holds 18.95 percent of the economic interest in Pinedale LP. The general partner, Pinedale GP, a wholly-owned subsidiary of the Company, holds the remaining 81.05 percent of the economic interest.
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| Schedule of future minimum lease payments |
The future contracted minimum rental receipts for all leases as of June 30, 2016, are as follows:
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Future Minimum Lease Receipts |
Years Ending December 31, |
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Amount |
2016 |
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$ |
30,393,548 |
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2017 |
|
60,931,762 |
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2018 |
|
61,139,762 |
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2019 |
|
63,468,195 |
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2020 |
|
70,629,654 |
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Thereafter |
|
451,794,133 |
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Total |
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$ |
738,357,054 |
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| Schedule of Significant Leases |
The table below displays the Company's individually significant leases as a percentage of total leased properties and total lease revenues for the periods presented:
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As a Percentage of (1)
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Leased Properties |
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Lease Revenues |
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As of |
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As of |
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For the Three Months Ended |
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For the Six Months Ended |
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June 30, 2016 |
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December 31, 2015 |
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June 30, 2016 |
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June 30, 2015 |
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June 30, 2016 |
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June 30, 2015 |
Pinedale LGS |
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39.8% |
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40.0% |
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30.4% |
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75.9% |
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30.4% |
|
73.0% |
Grand Isle Gathering System |
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50.1% |
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50.1% |
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59.8% |
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— |
|
59.8% |
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— |
Portland Terminal Facility |
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9.8% |
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9.6% |
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9.7% |
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23.8% |
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9.7% |
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22.2% |
Public Service of New Mexico(2)
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— |
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— |
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— |
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— |
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— |
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4.5% |
(1) Insignificant leases are not presented; thus percentages may not sum to 100%. |
(2) The Public Service of New Mexico lease terminated on April 1, 2015.
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| Schedule of Depreciation and Amortization |
The following table reflects the depreciation and amortization included in the accompanying Consolidated Statements of Income associated with our leases and leased properties:
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For the Three Months Ended |
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For the Six Months Ended |
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June 30, 2016 |
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June 30, 2015 |
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June 30, 2016 |
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June 30, 2015 |
Depreciation Expense |
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GIGS |
$ |
2,153,928 |
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$ |
— |
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$ |
4,297,650 |
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$ |
— |
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Pinedale |
2,217,360 |
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|
2,217,360 |
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|
4,434,720 |
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|
4,434,720 |
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Portland Terminal Facility |
318,915 |
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|
422,403 |
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|
205,256 |
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|
829,236 |
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Eastern Interconnect Project |
— |
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— |
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— |
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|
569,670 |
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United Property Systems |
7,425 |
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|
7,425 |
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|
14,850 |
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|
14,850 |
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Total Depreciation Expense |
$ |
4,697,628 |
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$ |
2,647,188 |
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$ |
8,952,476 |
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$ |
5,848,476 |
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Amortization Expense - Deferred Lease Costs |
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GIGS |
$ |
7,641 |
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$ |
— |
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$ |
15,282 |
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$ |
— |
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Pinedale |
15,342 |
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|
15,342 |
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|
30,684 |
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|
30,684 |
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Total Amortization Expense - Deferred Lease Costs |
$ |
22,983 |
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$ |
15,342 |
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$ |
45,966 |
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$ |
30,684 |
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| Schedule of Deferred Lease Costs |
The following table reflects the deferred costs that are included in the accompanying Consolidated Balance Sheets associated with our leased properties:
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June 30, 2016 |
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December 31, 2015 |
Net Deferred Lease Costs |
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GIGS |
$ |
305,729 |
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$ |
321,011 |
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Pinedale |
703,770 |
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|
734,454 |
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Total Deferred Lease Costs, net |
$ |
1,009,499 |
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$ |
1,055,465 |
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