Gladstone Commercial Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Ground Leases

We are obligated as lessee under four ground leases. Future minimum rental payments due under the terms of these leases as of December 31, 2019, are as follows (dollars in thousands):



Year	Future Lease Payments Due Under Operating Leases
2020	466
2021	477
2022	489
2023	492
2024	493
Thereafter	7,799
Total anticipated lease payments	$	10,216
Less: amount representing interest	(4,369		)
Present value of lease payments	$	5,847

Rental expense incurred for properties with ground lease obligations was $0.5 million each for the years ended December 31, 2019, 2018 and 2017. Our ground leases are treated as operating leases and rental expenses are reflected in property operating expenses on the consolidated statements of operations and comprehensive income. Our ground leases have a weighted average remaining lease term of 22.9 years.

Future minimum rental payments due under the terms of these leases as of December 31, 2018 are as follows (dollars in thousands):



For the year ended December 31,	Minimum Rental Payments Due
2019	465
2020	466
2021	392
2022	319
2023	322
Thereafter	3,914
Total	$	5,878

Letters of Credit

As of December 31, 2019, there was $12.0 million outstanding under letters of credit. These letters of credit are not reflected on our consolidated balance sheet.