CorEnergy Infrastructure Trust, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Leased Properties and Leases (Tables)

Leased Properties and Leases (Tables)

12 Months Ended

Dec. 31, 2018

Significant leased properties, major tenants and lease terms

The following table summarizes the significant leased properties, major tenants and lease terms:



Summary of Leased Properties, Major Tenants and Lease Terms
Property	Grand Isle Gathering System	Pinedale LGS
Location	Gulf of Mexico/Louisiana	Pinedale, WY
Tenant	Energy XXI GIGS Services, LLC	Ultra Wyoming LGS, 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.
Date Acquired	June 2015	December 2012
Initial Lease Term	11 years	15 years
Renewal Option	Equal to the lesser of 9-years or 75 percent of the remaining useful life	5-year terms
Current Monthly Rent Payments	7/1/17 - 6/30/18: $2,854,667 7/1/18 - 6/30/19: $2,860,917	$1,776,772⁽¹⁾
Estimated Useful Life	27 years	26 years
(1) Monthly rent payments increased to $1,812,307 beginning January 1, 2019.

Schedule of future minimum lease receipts

The future contracted minimum rental receipts for all leases as of December 31, 2018, are as follows:



Future Minimum Lease Receipts
Year Ending December 31,	Amount
2019	$	58,347,190
2020	65,383,190
2021	71,345,190
2022	70,322,690
2023	67,274,690
Thereafter	193,639,760
Total	$	526,312,710

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:



	As a Percentage of ⁽¹⁾
	Leased Properties				Lease Revenues
	As of December 31,				For the Years Ended December 31,
	2018		2017		2018		2017		2016
Pinedale LGS ⁽²⁾	44.5	%	39.9	%	35.2	%	31.2	%	30.4	%
Grand Isle Gathering System	55.2	%	49.7	%	55.9	%	59.1	%	59.8	%
Portland Terminal Facility ⁽³⁾	—	%	10.1	%	8.8	%	9.6	%	9.7	%
(1) Insignificant leases are not presented; thus percentages may not sum to 100%.
(2) Pinedale LGS lease revenues include variable rent of $4.3 million and $587 thousand for the years ended December 31, 2018 and 2017, respectively.
(3) On December 21, 2018, the Portland Terminal Facility was sold to Zenith Terminals, terminating the Portland Lease Agreement. Refer to "Sale of the Portland Terminal Facility" section below.

Schedule of Depreciation, Amortization and Accretion

The following table reflects the depreciation and amortization included in the accompanying Consolidated Statements of Income associated with the Company's leases and leased properties:



	For the Years Ended December 31,
	2018		2017		2016
Depreciation Expense
GIGS	$	10,836,590	$	9,754,596	$	8,605,506
Pinedale	8,869,440		8,869,440		8,869,440
Portland Terminal Facility ⁽¹⁾	1,243,769		1,275,660		843,084
United Property Systems	36,662		36,298		32,424
Total Depreciation Expense	$	20,986,461	$	19,935,994	$	18,350,454
Amortization Expense - Deferred Lease Costs
GIGS	$	30,564	$	30,564	$	30,564
Pinedale	61,368		61,368		61,368
Total Amortization Expense - Deferred Lease Costs	$	91,932	$	91,932	$	91,932
ARO Accretion Expense
GIGS	$	499,562	$	663,065	$	726,664
Total ARO Accretion Expense	$	499,562	$	663,065	$	726,664
(1) On December 21, 2018, the Portland Terminal Facility was sold to Zenith Terminals, terminating the Portland Lease Agreement. Refer to "Sale of the Portland Terminal Facility" section below.

Schedule of Deferred Lease Costs

The following table reflects the deferred costs that are included in the accompanying Consolidated Balance Sheets associated with the Company's leased properties:



	December 31, 2018		December 31, 2017
Net Deferred Lease Costs
GIGS	$	229,319	$	259,883
Pinedale	550,349		611,717
Total Deferred Lease Costs, net	$	779,668	$	871,600