b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024NOTE 12LEASES (Continued)LAFPP as a Lessor (Continued)lease receivables and deferred inflows of resources were fully recognized upon termination. The third lease,originally scheduled to expire in November 2025, was terminated early when the lessee vacated the space in June 2025.Accordingly, the related deferred inflow of resources was derecognized as of June 30, 2025. As of June 30, 2025, the System had no remaining lease receivables or deferred inflows of resources related to these lease agreements. The System recognized $206,115 in lease revenue for the current fiscal year. As of June 30, 2025, there are nofutureleasepaymentstobereceivedundertheseleaseagreements,asallleasesexpiredorwere terminated prior to year-end. NOTE 13MORTGAGES PAYABLEMortgages are secured by real estate.For the fiscal years 2024 and 2025, interest rates range from 1.81% to 5.71% per annum.The average monthly principal and interest payments range from $37,708 to $140,371. The mortgages mature from October 2026 to November 2032.Principal and interest payments due under such mortgages are as follows for the years ending June 30: Year Ending Principal Interest Total2026 $ - $7,545,646 $7,545,6462027 25,000,000 7,206,271 32,206,2712028- 7,095,959 7,095,9592029 66,260,000 4,669,127 70,929,1272030 62,375,000 2,219,554 64,594,5542031-2033 57,960,000 1,401,177 59,361,177$ 211,595,000 $30,137,734 $ 241,732,734The mortgages are secured by real estate that was purchased with the funds.The following is a summary of mortgage payable activities for the years ended June 30, 2025 and 2024:Balance Balance Fair ValueJune 30, 2024 Additions Deletions June 30, 2025 June 30, 2025Mortgage Payable $183,020,000 $57,625,000 $29,050,000 $211,595,000 $203,418,714Balance Balance Fair ValueJune 30, 2023 Additions Deletions June 30, 2024 June 30, 2024Mortgage Payable $196,613,299 $- $ 13,593,299 $183,020,000 $173,673,62253 68 LAFPP ANNUAL REPORT 2025'