Gladstone Commercial Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

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 March 31, 2018 are as follows (dollars in thousands):



Year	Minimum Rental Payments Due
Nine Months Ending December 31, 2018	$	349
2019	465
2020	466
2021	392
2022	319
2023	322
Thereafter	3,914
Total	$	6,227

Expenses recorded in connection to rental expense incurred for the properties listed above during the three months ended March 31, 2018 and 2017 were $0.1 million and $0.1 million, respectively. Rental expenses are reflected in property operating expenses on the condensed consolidated statements of operations and comprehensive income.

Letters of Credit

As of March 31, 2018, there was $1.0 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets.