Quarterly report pursuant to Section 13 or 15(d)

Leased Properties and Leases (Tables)

v3.10.0.1
Leased Properties and Leases (Tables)
6 Months Ended
Jun. 30, 2018
Leases [Abstract]  
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
Portland Terminal Facility
Location
Gulf of Mexico/Louisiana
Pinedale, WY
Portland, OR
Tenant
Energy XXI GIGS Services, LLC
Ultra Wyoming LGS, LLC
Zenith Energy 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 39-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(1)
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
7/1/2017 - 6/30/2018: $2,854,667
7/1/2018 - 6/30/2019: $2,860,917
$1,776,772
$513,355
Initial Estimated
Useful Life
27 years
26 years
30 years
(1) The lessee of the Portland Terminal Facility has a purchase option on the facility, which it can exercise with 90-days notice, as well as lease termination options on the fifth and tenth anniversaries of the lease. If exercised, the purchase option and termination options are subject to additional payment provisions and termination fees prescribed under the lease.
Schedule of future minimum lease receipts
The future contracted minimum rental receipts for all leases as of June 30, 2018, are as follows:
Future Minimum Lease Receipts (1)
Years Ending December 31,
Amount
2018
$
30,919,514

2019
64,103,462

2020
71,264,921

2021
77,445,396

2022
76,553,434

Thereafter
302,242,184

Total
$
622,528,911

(1) Future minimum lease receipts include base rents for the Portland Terminal Facility through its initial 15-year term.
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
 
 
 
 
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30, 2018
 
December 31, 2017
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
Pinedale LGS(2)
39.9
%
 
39.9
%
 
35.3
%
 
30.6
%
 
34.1
%
 
30.6
%
Grand Isle Gathering System
49.7
%
 
49.7
%
 
55.6
%
 
59.6
%
 
56.7
%
 
59.6
%
Portland Terminal Facility
10.2
%
 
10.1
%
 
9.0
%
 
9.6
%
 
9.1
%
 
9.7
%
(1) Insignificant leases are not presented; thus percentages may not sum to 100%.
 
 
 
 
(2) Pinedale LGS lease revenues include variable rent of $1.1 million and $1.5 million for the three and six months ended June 30, 2018, respectively.
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 Three Months Ended
 
For the Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
Depreciation Expense
 
 
 
 
 
 
 
GIGS
$
2,751,272

 
$
2,438,649

 
$
5,502,544

 
$
4,877,298

Pinedale
2,217,360

 
2,217,360

 
4,434,720

 
4,434,720

Portland Terminal Facility
318,915

 
318,915

 
637,830

 
637,830

United Property Systems
9,120

 
9,060

 
18,242

 
18,119

Total Depreciation Expense
$
5,296,667

 
$
4,983,984

 
$
10,593,336

 
$
9,967,967

Amortization Expense - Deferred Lease Costs
 
 
 
 
 
 
 
GIGS
$
7,641

 
$
7,641

 
$
15,282

 
$
15,282

Pinedale
15,342

 
15,342

 
30,684

 
30,684

Total Amortization Expense - Deferred Lease Costs
$
22,983

 
$
22,983

 
$
45,966

 
$
45,966

ARO Accretion Expense
 
 
 
 
 
 
 
GIGS
$
127,928

 
$
160,629

 
$
255,856

 
$
321,258

Total ARO Accretion Expense
$
127,928

 
$
160,629

 
$
255,856

 
$
321,258

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:
 
June 30, 2018
 
December 31, 2017
Net Deferred Lease Costs
 
 
 
GIGS
$
244,601

 
$
259,883

Pinedale
581,033

 
611,717

Total Deferred Lease Costs, net
$
825,634

 
$
871,600