Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Ground Leases

We are obligated as lessee under three ground leases. Future minimum rental payments due under the terms of these leases for the nine months ending December 31, 2024 and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):

Year Future Lease Payments Due Under Operating Leases
Nine Months Ending December 31, 2024 $ 343 
2025 457 
2026 460 
2027 467 
2028 470 
2029 470 
Thereafter 3,359 
Total anticipated lease payments $ 6,026 
Less: amount representing interest (1,785)
Present value of lease payments $ 4,241 

Rental expense incurred for properties with ground lease obligations during the three months ended March 31, 2024 was $0.1 million and during the three months ended March 31, 2023 was $0.1 million. 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. Our ground leases have a weighted average remaining lease term of 13.9 years and a weighted average discount rate of 5.30%.

Letters of Credit

As of March 31, 2024, there were no outstanding letters of credit.