IMPAIRMENTS AND ASSETS HELD FOR SALE |
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| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| IMPAIRMENTS AND ASSETS HELD FOR SALE | 8 – IMPAIRMENTS AND ASSETS HELD FOR SALE
For the years ended December 31, 2025 and 2024, the Trust concluded that an impairment of value of certain assets within its greenhouse portfolio was appropriate based on market conditions. The impairment takes into account assets held for sale. During 2025 and 2024, the Trust recorded approximately $562,000 and $20 million in non-cash impairment charges.
A summary of the Trust’s impairment expense for the years ended December 31, 2025 and 2024 is below:
Any decline in the estimated fair values of our assets could result in impairment charges in the future. It is possible that such impairments, if required, could be material.
As of December 31, 2025, the Trust considered Maverick 1 (Ordway, CO), Maverick 14 (Ordway, CO), Tamarack 19 (Ordway, CO), Tamarack 3 (Ordway, CO), Tamarack 27 and 28 (Ordway, CO), Tamarack 4 and 5 (Ordway, CO), Walsenburg (CO), Desert Hot Spring (CA), and Vinita (OK), as Assets Held for Sale.
The Trust has aggregated and classified the assets and liabilities of properties to be sold as held for sale in its Consolidated Balance Sheets as of December 31, 2025 since all criteria under ASC 360-10-45-9 were met. The Balance Sheet as of December 31, 2024 has been reclassed for comparative purposes as three properties (Tamarack 7, Tam 7 -MIP, Maverick 5 – Jackson Farms, and Tamarack 8 -Apotheke) considered held for sale are now considered held for use as of December 31, 2025. Also, the balance sheet as of December 31, 2024 includes the Tamarack 18, and Tamarack 13 properties which were sold during the year ended 2025 as well as, the Michigan and Nebraska properties which were written off on April 11, 2025 as part of the resolution of the Greenhouse Loan, and therefore all removed from the December 31, 2025 column. The assets and liabilities of assets held for sale were as follows:
Other Liabilities
Other liabilities as of December 31, 2025 and December 31, 2024 is approximately $0 and $356,000, respectively. Other liabilities for 2024 represented a finance loan agreement for a tractor used at the Nebraska greenhouse. The loan was payable annually over five years with a 1.9% interest rate and matured on August 21, 2028 but is no longer outstanding after the asset was returned to the lender. Other liabilities for 2024 also include a finance agreement for a property insurance policy for properties that are considered held for sale.
Other Assets
Other assets as of December 31, 2025 and December 31, 2024 is approximately $0 and $56,000, respectively. Other assets for 2024 represent a tractor purchased by PW MillPro NE on August 21, 2023 for use at the Nebraska greenhouse (net of depreciation) that has been returned to the lender.
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