Financial Statements (unaudited) June 30, 2024
The unaudited financial statements for the six months ending June 30, 2024 are included in this report.
The audited financial statements dated December 31, 2023, were sent to shareholders on February 28, 2024 and will not be duplicated here.
A copy of the audited financial statements can be mailed to shareholders within three working days by contacting Kavilco’s Corporate Administrator/Office Manager at 800.786.9574 or 206.624.6166
Statement of Assets and Liabilities
Assets | |
Investments in securities, at fair value (cost $33,997,852) | $36,240,235 |
Real estate, at fair value (cost $1,054,089) | 7,200,000 |
Cash and cash equivalents | 243,413 |
Dividend receivable | 16,879 |
Prepaid expenses and other assets | 238,743 |
Total assets | $ 43,939,270 |
LIABILITIES | |
Accounts payable and accrued expenses | $ 94,578 |
Dividends payable | 175,090 |
Lease liability | 187,830 |
Total liabilities | 457,498 |
NET ASSETS | $ 43,481,772 |
Net assets consist of: | |
Distributable earnings | $ 8,940,936 |
Net contributed capital | 34,540,836 |
Total net assets | $ 43,481,772 |
Net asset value per share of Class A and Class B common | |
stock ($43,481,772 divided by 12,000 shares outstanding) | $ 3,624 |
Financial Statements (unaudited) June 30, 2024
SCHEDULE OF INVESTMENTS
INVESTMENTS IN SECURITIES | Principal Amount or Shares | Fair Value |
U.S. Common Stock 34.1% | ||
American Depository Receipts - 0.2% | ||
Invesco Limited | 6,300 | $ 94,248 |
Total American Depository Receipts | 94,248 | |
Consumer Discretionary - 0.9% | ||
Genuine Parts Co. | 2,700 | 373,464 |
Total Consumer Discretionary | 373,464 | |
Consumer Staples - 0.1% | ||
Walgreens Boots Alliance, Inc. | 3,850 | 46,566 |
Total Consumer Staples | 46,566 | |
Energy - 0.6% | ||
Chevron Corporation | 550 | 86,031 |
Kinder Morgan, Inc. | 8,919 | 177,221 |
Total Energy | 263,252 | |
Financials - 10.6% | ||
Blackstone Group, Inc. | 4,800 | 594,240 |
Diversified Healthcare Trust | 6,400 | 19,520 |
ELME REIT | 7,450 | 118,678 |
Hospitality Properties Trust | 11,400 | 58,596 |
Iron Mountain, Inc. | 3,600 | 322,632 |
Lamar Advertising Company | 4,400 | 525,932 |
Prologis, Inc. | 5,577 | 626,353 |
Realty Income Corp. | 8,055 | 425,465 |
Stag Industrial Inc. | 14,410 | 519,625 |
T Rowe Price Group, Inc. | 5,300 | 611,143 |
Truist Financial Corp. | 5,480 | 212,898 |
Ventas, Inc. | 9,200 | 471,592 |
Vornado Realty Trust | 3,290 | 86,494 |
Wells Fargo & Co. | 40 | 2,376 |
Total Financials | 4,595,544 | |
Principal Amount or Shares | Fair Value | |
Health Care - 0.2% | ||
GE Healthcare Technologies, Inc. | 1,022 | 79,634 |
Solventum Corp. | 260 | 13,749 |
Total Health Care | 93,383 | |
Industrials - 0.4% | ||
Alaska Air Group Inc. | 360 | 14,544 |
Delta Air Lines Inc. | 520 | 24,669 |
3M Company | 1,040 | 106,278 |
Total Industrials | 145,491 | |
Information Technology - 3.0% | ||
Block, Inc. | 220 | 14,188 |
Constellation Energy Corp. | 2,166 | 433,785 |
Intel Corp. | 1,040 | 32,209 |
Paychex, Inc. | 6,925 | 821,028 |
Paypal Holdings, Inc. | 200 | 11,606 |
Total Information Technology | 1,312,816 | |
Master Limited Partnerships - 0.6% | ||
Energy Transfer Partners LP | 10,960 | 177,771 |
Sunoco LP | 1,240 | 70,110 |
Total Master Limited Partnerships | 247,881 | |
Materials - 0.4% | ||
Dow, Inc. | 3,125 | 165,781 |
Principal Amount or Shares | Fair Value | |
Telecommunication Services - 3.3% | ||
AT & T, Inc. | 21,570 | 412,203 |
Consolidated Communications | 6,600 | 29,040 |
Lumen Technologies, Inc. | 5,900 | 6,490 |
Verizon Communications | 22,540 | 929,550 |
Warner Brothers Discovery, Inc. | 7,153 | 53,218 |
Total Telecommunication Services | 1,430,501 | |
Utilities - 14.0% | ||
Alliant Energy Corp. | 11,900 | 605,710 |
American Electric Power, Inc. | 6,240 | 547,498 |
Dominion Energy, Inc. | 3,500 | 171,500 |
Eversource Energy | 8,481 | 480,957 |
Exelon Corp. | 4,500 | 155,745 |
NextEra Energy, Inc. | 10,680 | 756,251 |
Public Service Enterprise Group, Inc. | 12,000 | 884,400 |
Southern Company | 14,730 | 1,142,604 |
UGI Corp. | 4,611 | 105,592 |
WEC Energy Group, Inc. | 6,840 | 536,666 |
Xcel Energy, Inc. | 12,770 | 682,046 |
Total Utilities | 6,068,969 | |
Total U.S. Common Stock (Cost $12,595,513) | 14,837,896 | |
Government Debt Securities 47.7% | ||
United States Treasury Bills, 5.2%, due 8/8/2024 | 2,000,000 | 1,989,291 |
United States Treasury Bills, 5.1%, due 8/15/2024 | 3,000,000 | 2,980,809 |
United States Treasury Bills, 5.2%, due 9/5/2024 | 2,000,000 | 1,981,291 |
United States Treasury Bills, 5.3%, due 9/12/2024 | 3,000,000 | 2,968,969 |
United States Treasury Bills, 5.2%, due 10/3/2024 | 4,000,000 | 3,947,225 |
United States Treasury Bills, 5.2%, due 10/10/2024 | 2,000,000 | 1,971,335 |
United States Treasury Bills, 5.2%, due 10/24/2024 | 2,000,000 | 1,967,091 |
United States Treasury Bills, 5.3%, due 11/21/2024 | 2,000,000 | 1,959,036 |
United States Treasury Bills, 5.3%, due 12/5/2024 | 1,000,000 | 977,571 |
Total Government Debt Securities (Cost $20,742,618) | 20,742,618 | |
Money Market Fund - 1.5% | ||
Principal Deposit Sweep Program 0.10% yield | 659,721 | |
Total Money Market Fund (Cost $659,721) | 659,721 | |
Other Net Assets - 16.7% | ||
Total Other Net Assets (Cost $1,095,626) | 7,241,537 | |
TOTAL NET ASSETS (Cost $35,093,478) | $ 43,481,772 |
Total Net Assets | |
US Common Stock | 34.1% |
Government Debt Securities | 47.7% |
Money Market Fund | 1.5% |
Other Net Assets | 16.7% |
Financial Statements (unaudited) June 30, 2024
STATEMENT OF OPERATIONS | |
Investment Income | |
Dividends | $ 305,022 |
Interest | 537,939 |
Total investment income | 842,961 |
Expenses | |
Salaries and benefits | 234,911 |
Directors' compensation and expenses | 123,738 |
Insurance | 53,896 |
Office and equipment leases | 37,483 |
General and administrative | 28,584 |
Professional fees | 31,900 |
Custodian | 4,726 |
Total expenses | 515,238 |
Net investment income | 327,723 |
Realized Gain and Unrealized Appreciation on Investments | |
Net realized gain on investments | 186,993 |
Net change in unrealized appreciation on investments | 348,947 |
Total realized gain and unrealized appreciation on investments | 535,940 |
Net operating income | 863,663 |
Other Income and Expense, net | 96,300 |
Net increase in net assets resulting from operations | $ 959,963 |
Financial Statements (unaudited) June 30, 2024
STATEMENT OF CHANGES IN NET ASSETS
June 30, 2024 | June 30, 2023 | |
Increase (Decrease) in Net Assets from Operations | ||
Net investment income | $ 327,723 | $ 218,575 |
Net realized gain on investments | 186,993 | 238,092 |
Net change in unrealized appreciation (depreciation) on investments | 348,947 | (765,959) |
Other income and expense, net | 96,300 | 221,580 |
Net increase (decrease) in net assets resulting from operations | 959,963 | (87,712) |
Dividends and Distributions to Shareholders | (207,600) | (156,000) |
Total increase (decrease) in net assets | 752,363 | (243,712) |
Net Assets | ||
Beginning of year | 42,729,409 | 42,609,684 |
End of year (includes undistributed ordinary income of $552,642 and $149,226, respectively) | ||
$ 43,481,772 | $ 42,365,972 |
Financial Statements (unaudited) June 30, 2024
FINANCIAL HIGHLIGHTS
Per share operating performance (for a share of Class A and Class B capital stock outstanding):
| Six Months Ended | Six Months Ended |
| June 30, 2024 | June 30, 2023 |
Net asset value, beginning of year
| $ 3,561 | $ 3,551 |
Income from investment and real estate
| ||
Net investment income
| 27 | 18 |
Net realized and unrealized appreciation (depreciation)
| ||
on investments and real estate
| 45 | (44) |
Net other income
| 8 | 18 |
Net increase (decrease) in net assets resulting from operations
| 80 | (8) |
Less dividends and distributions
| (17) | (13) |
Net asset value, end of year
| $ 3,624 | $ 3,530 |
Total return
| 2.21% | (0.23)% |
Supplemental Data:
| ||
Net assets, end of period (in thousands)
| $ 43,482 | $ 42,366 |
Ratio to average net assets
| ||
Expenses
| 1.20% | 1.22% |
Net investment income
| 0.76% | 0.51% |
Portfolio turnover rate
| 0.00% | 0.57% |
Per share operating performance (for a share of Class A and Class B capital stock outstanding):
| Years Ended | Years Ended | Years Ended | Years Ended | Years Ended |
| 2023 | 2022 | 2021 | 2020 | 2019 |
Net asset value, beginning of year
| $ 3,551 | $ 3,924 | $ 3,355 | $ 3,676 | $ 3,230 |
Income from investment and real estate
| |||||
Net investment income
| 45 | 38 | 35 | 42 | 48 |
Net realized and unrealized appreciation (depreciation)
| |||||
on investments and real estate
| 17 | (341) | 613 | (294) | 484 |
Net other income
| 23 | 12 | 13 | 19 | 27 |
Net increase (decrease) in net assets resulting from operations
| 85 | (291) | 661 | (233) | 559 |
Less dividends and distributions
| (75) | (82) | (92) | (88) | (113) |
Net asset value, end of year
| $ 3,561 | $ 3,551 | $ 3,924 | $ 3,355 | $ 3,676 |
Total return
| 2.39% | 8.19% | 16.85% | (6.94)% | 15.21% |
Supplemental Data:
| |||||
Net assets, end of period (in thousands)
| $42,729 | $42,610 | $47,090 | $40,260 | $44,116 |
Ratio to average net assets
| |||||
Expenses
| 2.47% | 2.21% | 2.18% | 2.02% | 2.22% |
Net investment income
| 1.26% | 1.00% | 0.96% | 1.20% | 1.38% |
Portfolio turnover rate
| 0.70% | 2.66% | 3.28% | 4.08% | 10.50% |
Financial Statements (unaudited) June 30, 2024 ~ Notes
Note 1. Organization
Kavilco Incorporated ("the Fund") is a village corporation within the Sealaska region organized on November 13, 1973, pursuant to the Alaska Native Claims Settlement Act ("ANCSA") of 1971. Under ANCSA, the Native claims to land in Alaska were settled in exchange for part of the state's land and compensation. Settlement benefits were given to Natives of Alaska villages in the form of ownership shares in village corporations that were organized pursuant to ANCSA. The Fund was organized for the purpose of securing and administering the land and benefits for the Natives of the Kasaan village in Alaska. Contributed capital includes receipts from the U.S. government and the state of Alaska under provisions of ANCSA.
On November 1, 1989, the Fund began to operate as a self-managed, closed end management investment company, as defined by the Investment Company Act of 1940 ("the Act"). The Fund is subject to various restrictions imposed by the Act and the Internal Revenue Code, including restrictions on borrowing, dividend, distribution policies, operations, and reporting requirements. The Fund's investment decisions focus primarily on large-cap dividend equity investments and fixed income investments, are made by management under the direction of the Board of Directors.
Note 2. Significant Accounting Policies
As an investment company, the Fund follows the accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standard Codification Topic 946 “Financial Services – Investment Companies.” The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make certain estimates and assumptions at the date of the financial statements that affect certain reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Cash and Cash Equivalents
Cash and cash equivalents include cash on deposit with banks and U.S Treasury Bills. The Fund considers all short-term, highly liquid instruments that are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value to be cash equivalents. The Fund has a cash and equivalents balance that is covered by the Federal Deposit Insurance Corporation.
Financial Statements (unaudited) June 30, 2024 ~ Notes
Valuation of Investments
All investments are recorded at estimated fair value, as described in Note 3.
Investment Transactions and Income
Investment transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are computed using the last in, first out (“LIFO”) method. Interest income is recorded on an accrual basis as adjusted for the amortization of discounts and premiums using the effective interest method. Premiums and discounts, including original issue discounts, are amortized for both tax and financial reporting purposes. Dividend income is recorded as of the ex-dividend date. Unrealized gains and losses are included in the Statement of Operations.
Federal Income Taxes
The Fund files income tax returns in the U.S. federal jurisdiction and Alaska State.
The Fund's policy is to continue to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute at least 90% of its net investment taxable income to its shareholders. Generally, no federal income tax provision is required for the Fund.
The Fund records a liability, if any, for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. No liability has been recorded for uncertain tax positions or related interest or penalties as of June 30, 2024.
Dividends and Distributions to Shareholders
Dividends and distributions to shareholders are recorded on the payable date. Dividends are generally declared and paid twice a year. Capital gain distributions are generally declared and paid annually. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with accounting principles generally accepted in the United States.
Financial Statements (unaudited) June 30, 2024 ~ Notes
Directors' Compensation and Expenses
Each member of the Board of Directors receives compensation for each board meeting attended during the year, in addition to a per diem allowance. Directors are also reimbursed for such expenses as accommodation, airfare, and car rental related to Board meetings. In addition to meeting related expenses, the Fund pays for the medical insurance and out-of-pocket expenses of certain directors.
Note 3. Fair Value Measurements
Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement determined based on assumptions that market participants would use in pricing an asset or liability. There are three levels that prioritize the inputs used in measuring fair value as follows:
· Level 1: Observable market inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities;
· Level 2: Observable market inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
· Level 3: Unobservable inputs where there is little or no market data, which require the reporting entity to develop its own assumptions.
An asset's or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for assets measured at fair value, including a general description of the asset.
Money Market Funds
Fair value of money market funds is determined using quoted market prices and are categorized in Level 1 of the fair value hierarchy.
Financial Statements (unaudited) June 30, 2024 ~ Notes
U.S Treasury Bills
Investments in U.S. Treasury bills are reported at cost, net of unamortized premiums or discounts. Premiums or discounts are amortized into interest income over the term of the investment using the effective interest rate method. The Fund’s intent is to hold investments to maturity. Consequently, a provision is not made for unrealized gains or losses on these securities. U.S. Treasury Bill are categorized in Level 1 of the fair value hierarchy.
Equity Securities (Common Stock)
Securities traded on a national securities exchange (or reported on the NASDAQ national market) are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.
Real Estate
Real estate represents entitlement to the surface estate of real property, for which no readily available market quotation exists. Fair value of real estate is determined by management based on a Certified Forester's opinion as to the current value and status of the land, along with other factors. Other relevant factors include the lack of commercially viable timber due to previous harvest, amount of capital expenditures required for the future growth of timber, location of the property, recent sales of similar real property in the region and market demand and supply for this type of real property during the valuation process. Real estate is included in Level 3 of the fair value hierarchy.
Financial Statements (unaudited) June 30, 2024 ~ Notes
The following table presents information about the Fund's investments in securities and real estate measured at fair value as of June 30, 2024:
Level 1 | Level 2 | Level 3 | Balance | |
Investments in Securities | ||||
U.S. Common Stock | $ 14,837,896 | $ 14,837,896 | ||
Money Market Fund | 659,721 | 659,721 | ||
U.S. Treasury Bills | 20,742,618 | 20,742,618 | ||
$ 36,240,235 | $ - | $ - | $ 36,240,235 | |
Real Estate | $ - | $ - | $ 7,200,000 | $ 7,200,000 |
For the six months ended June 30, 2024, there was no realized gain (loss), cost or purchases, proceeds from sales, or transfers in or out of Level 3 at the end of the reporting period.
Note 4. Real Estate
At June 30, 2024, the Fund owns fee title to the surface estate of 22,946 acres of real estate located in southeast Alaska.
As of June 30, 2024, there is no commercially viable timber on the real estate and the Fund has no outstanding timber agreements. The last harvest and sale of timber from this land was in 2001.
The financial statements include real estate valued at $7,200,000 in 2023, the value of which was determined by an independent appraisal. There was no change in the value of the real estate at June 30, 2024, from December 31, 2023.
Financial Statements (unaudited) June 30, 2024 ~ Notes
Note 5. Trading Risk
In the normal course of business, the Fund enters into financial transactions involving instruments where there is risk of potential loss due to changes in the market (market risk) or failure of the other party to the transaction to perform (credit risk).
Market risk is the potential change in value caused by fluctuations in market prices of an underlying financial instrument. Subsequent market fluctuations may require selling investments at prices that differ from the values reflected on the statement of assets and liabilities. Market risk is directly impacted by the volatility and liquidity in the markets in which financial instruments are traded. The Fund's exposure to market risk may be increased in that a significant portion of its assets may be invested in a relatively small number of investment positions at any one time. Accordingly, appreciation or depreciation in value of investment positions may have a more significant effect on the value of the Fund's portfolio than would be the case in a more diversified or hedged portfolio.
Credit risk is the possibility that a loss may occur due to the failure of the counterparty to perform according to the terms of a contract. The Fund's exposure to credit risk associated with counterparty nonperformance includes cash deposits that may exceed applicable insurance limits. The Fund seeks to control such credit risk by maintaining deposits with only high-quality financial institutions and trading exchange traded financial instruments, which generally do not give rise to significant counterparty exposure due to the requirements of the individual exchanges.
Catastrophe – Force Majeure Risk
The occurrence of catastrophic events (such as hurricanes, earthquakes, pandemics, such as COVID-19, acts of terrorism and other catastrophes) could adversely affect the values recorded in the Fund's financial statements.
Financial Statements (unaudited) June 30, 2024 ~ Notes
Note 6. Investment Transactions
Purchases of investment securities (U.S. treasury bills) aggregated $20,475,250 for the six-month period ended June 30, 2024, and sales and maturities of investment securities (consisting of common stock and U.S. treasury bills) aggregated $20,988,250 for the six-month period ended June 30, 2024.
The U.S. federal income tax basis of the Fund's investments is the same as for financial reporting purposes. The gross unrealized appreciation and gross unrealized depreciation for U.S. federal income tax purposes is $4,837,684 and $2,595,301, respectively, as of June 30, 2024.
Note 7. Premises and Equipment
The following is a summary of premises and equipment at June 30, 2024:
Building | $170,601 |
Furniture, fixtures, and equipment | 37,494 |
208,095 | |
Less accumulated depreciation | (208,095) |
$ - |
All assets are recorded at cost less accumulated depreciation. Depreciation is computed on the method over the estimated useful lives of the related assets, which range from 3 to 15 years. All assets are fully depreciated. As such, no depreciation expense was recorded during the six months ended June 30, 2024.
Financial Statements (unaudited) June 30, 2024 ~ Notes
Note 8. Lease Obligation
The Fund leases office space under a non-cancelable operating lease agreement, which terminates September 30, 2028. Pursuant to the lease agreement, the Fund paid a lease deposit of $3,528 which will be credited to last month's rent. The discount rate for the office lease is 1.76% and cash paid for the six-month period ended June 30, 2024, was $21,123. The right of use asset amounting to $183,116 at June 30, 2024, is included in prepaid expenses and other assets. The lease liability at June 30, 2024, is $187,830, of which the current portion is $40,152 and the non-current portion is $147,678. Future minimum lease commitments under this non-cancelable operating lease are as follows:
2024 | $ 21,240 |
2025 | 43,733 |
2026 | 44,923 |
2027 | 46,113 |
2028 | 39,171 |
$ 195,180 | |
Imputed interest | $ (7,350) |
Lease liability | $ 187,830 |
Rent expense for the six months ended June 30, 2024, was $22,214.
Note 9. Net Assets
Upon organization of the Fund, 100 shares of common stock (Class A) were issued to each qualified shareholder enrolled in the Fund pursuant to ANCSA. The Fund utilized a roll comprising 120 Alaska Natives eligible to receive stock certificates as certified by the U.S. Secretary of the Interior. Under the provisions of ANCSA, stock dividends paid or other stock grants are restricted, and the stock may not be sold, pledged, assigned, or otherwise alienated, except in certain circumstances by court decree or death, unless approved by a majority of the shareholders. The stock carries voting rights only if the holder hereof is an eligible Alaska Native. Nonvoting common stock (Class B) is issued to non-Native persons who inherit stock or are gifted stock.
Financial Statements (unaudited) June 30, 2024 ~ Notes
The Fund's capital structure is as follows:
· Common stock:
- Class A, no par value - Authorized, 1,000,000 shares; issued and outstanding, 10,053.53 shares
- Class B, no par value - Authorized, 500,000 shares; issued and outstanding, 1,946.47 shares
Note 10. Dividends and Distributions to Shareholders
On March 1, 2024, a distribution of $17.30 per share was declared. The dividend was paid on March 7, 2024, to shareholders of record on March 1, 2024.
The tax character of dividends and distributions paid during the six months ended June 30, 2024, and the years ended December 31, 2023, and 2022 were as follows:
June 30, 2024 | 2023 | 2022 | |
Dividends and distributions paid from: | |||
Ordinary income | $ 20,607 | $ - | $ 629,216 |
Long-term capital gain | 186,993 | 900,000 | 354,784 |
$ 207,600 | $ 900,000 | $ 984,000 |
As of June 30, 2024, and the years ended December 31, 2023, and 2022, the components of distributable earnings on a tax basis were as follows:
June 30, 2024 | 2023 | 2022 | |
Undistributed ordinary income | $ 552,642 | $ 149,226 | $ 97,654 |
Net unrealized appreciation on: | |||
Investments | 2,242,383 | 1,893,436 | 2,335,283 |
Real estate | 6,145,911 | 6,145,911 | 5,635,911 |
$ 8,940,936 | $ 8,188,573 | $ 8,068,848 |
Financial Statements (unaudited) June 30, 2024 ~ Notes
Note 11. Schedule of Investments
Investments are categorized by type, country, and industry. The industry category represents management's belief as to the most meaningful presentation of the classification of the principal business of the investees. The percentage of net assets is computed by dividing the fair value of each category by net assets.
Note 12. Pension Plan
Employees of the Fund are covered by a defined contribution pension plan. The Fund contributes 20% of each participant's compensation to the plan. The Fund's contributions during the six months ended June 30, 2024, totaled $25,782.
Note 13. Other Income and Expense
The Fund earned income of $87,840 for the six months ended June 30, 2024, as a result of ANCSA Section 7(i), which requires regional corporations to distribute 70% of any net revenues derived from timber resources and the subsurface estate to other regional corporations, which then redistribute under Section 7(j) 50% of such amounts to the village corporations and at large shareholders.
Other income also includes $8,460 of lease and rental income for the six months ended June 30, 2024.