Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies

v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
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, 2022, are as follows (dollars in thousands):

Year Future Lease Payments Due Under Operating Leases
2023 $ 492 
2024 493 
2025 494 
2026 498 
2027 506 
Thereafter 6,301 
Total anticipated lease payments $ 8,784 
Less: amount representing interest (3,476)
Present value of lease payments $ 5,308 

Rental expense incurred for properties with ground lease obligations was $0.4 million, $0.5 million, and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. 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 18.5 years and weighted average discount rate of 5.33%.

Letters of Credit

As of December 31, 2022, there was $15.6 million outstanding under letters of credit. These letters of credit are not reflected on our consolidated balance sheet.