Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.20.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Ground Leases

We are obligated as lessee under four ground leases. Future lease payments due under the terms of these leases as of September 30, 2020 are as follows (dollars in thousands):
Year Future Lease Payments Due Under Operating Leases
Three Months Ending December 31, 2020 $ 116 
2021 477 
2022 489 
2023 492 
2024 493 
2025 494 
Thereafter 7,305 
Total anticipated lease payments $ 9,866 
Less: amount representing interest (4,138)
Present value of lease payments $ 5,728 

Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2020 was $0.1 million and $0.4 million, respectively, and during the three and nine months ended September 30, 2019 was $0.1 million and $0.4 million, respectively. Our ground leases are treated as operating leases and rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations and comprehensive income.

Letters of Credit

As of September 30, 2020, there was $13.7 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets.