阿尔卑斯收入信托公司2025年季度报告

(In thousands, except share and per share data) ASSETS Real Estate: March31, 2025 $11,826$Interest Income from Commercial Loans and Investments2,301 AdditionDividends inAccumulate Three Months EndedMarch31, 2025Cash Flow From Operating Activities: March31, 2025Supplemental Disclosure of Cash Flow Information:$3,173 of a business. Under Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic805): Clarifying the Definition of a Business, an acquisition does not qualify as a business when there is no substantive process acquired or substantially all of the fair value is concentrated in a singleidentifiable asset or group of similar identifiable assets or the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot bereplaced without significant cost, effort or delay. Transaction costs related to acquisitions that are asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transactioncosts for acquisitions that are deemed to be acquisitions of a business are expensed as incurred.Improvements and replacements are capitalized when they extend the useful life or improve theproductive capacity of the asset. Costs of repairs and maintenance are expensed as incurred. In accordance with FASB guidance, the fair value of the real estate acquired with in-place leasesis allocated to the acquired tangible assets, consisting of land, building and tenant improvements, andidentified intangible assets and liabilities, consisting of the value of above-market and below-marketleases, the value of in-place leases, and the value of leasing costs, based in each case on their relativefair values. In allocating the fair value of the identified intangible assets and liabilities of an acquiredproperty, above-market and below-market in-place lease values are recorded as other assets orliabilities based on the present value. The capitalized above-market lease values are amortized as a bargain renewal option and the likelihood of a tenant exercising such option. The value of in-placeleases and leasing costs are amortized to expense over the remaining non-cancelable periods of the amounts relating to that lease would be written off.ASSETS HELD FOR SALEInvestments in real estate which are determined to be “held for sale” pursuant to FASB Topic the lesser of carrying value or fair value, less costs to sell. Real estate investments classified as heldfor sale are not depreciated. SALES OF REAL ESTATEWhen properties are disposed of, the related cost basis of the real estate, intangible lease assets,and intangible lease liabilities, net of accumulated depreciation and/or amortization, and any accruedstraight-line rental income balance for the underlying operating leases are removed, and gains orlosses from the dispositions are reflected in net income within gains on dispositions of assets. Inaccordance with the FASB guidance, gains or losses on sales of real estate are generally recognized operating leases. The Company recognizes lease income on these properties on a straight-line basisover the term of the lease. Accordingly, contractual lease payment increases are recognized evenlyover the term of the lease. The periodic difference between lease income recognized under thismethod and contractual lease payment terms (i.e., straight-line rent) is recorded as a deferred among other things, the aging of the tenant receivable, management’s evaluation of credit riskassociated with the tenant and industry of the tenant, and a review of specifically identified accounts COMMERCIAL LOANS AND INVESTMENTS cost, net of unaccreted origination costs and current expected credit losses (“CECL”) reserve. Pursuant to ASC 326,Financial Instruments - Credit Losses, the Company measures and recordsa provision for CECL each time a new investment is made, or a loan is repaid, as well as if changes to estimates occur during a quarterly measurement period. We are unable to use historical data toestimate expected credit losses as we have incurred no losses to date. Management utilizes a loss-ratemethod and considers macroeconomic factors to estimate its CECL allowance, which is calculated Sales of participations in commercial loans and investments are evaluated for achievement of the characteristics of participating interest pursuant to ASC 860,Transfers and Servicing. If the sale of aparticipation has all of the characteristics of a participating interest, it achieves sale accounting, andthe commercial loan or investment is presented net of the participating interest.If the sale of aparticipation does not have all of the characteristics of a participating interest, it does not achieve saleaccounting and is treated as a secured borrowing. The Company’s participation in commercial loans RECOGNITION OF INTEREST INCOME FROM COMMERCIAL LOANS AND INVESTMENTS Interest income on commercial loans and investments includes interest paymen