v3.25.2
Commitments and Contingencies
6 Months Ended
Jun. 30, 2025
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 for the six months ending December 31, 2025 and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):
YearFuture Lease Payments Due Under Operating Leases
Six Months Ending December 31, 2025$228 
2026460 
2027467 
2028470 
2029470 
2030385 
Thereafter2,974 
Total anticipated lease payments$5,454 
Less: amount representing interest(1,513)
Present value of lease payments$3,941 

YearFuture Lease Payments Due Under Finance Leases
Six Months Ending December 31, 2025$77 
2026172 
2027178 
2028178 
2029178 
2030178 
Thereafter7,098 
Total anticipated lease payments$8,059 
Less: amount representing interest(5,112)
Present value of lease payments$2,947 

Rental expense incurred for properties with ground lease obligations during the three and six months ended June 30, 2025 was $0.1 million and $0.2 million, respectively. Rental expense incurred for properties with ground lease obligations during the three and six months ended June 30, 2024 was $0.1 million and $0.1 million, respectively. Three of 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. One of our ground leases is treated as a finance lease and rental expense is reflected in interest expenses on the condensed consolidated statements of operations and comprehensive income. Our ground leases have a weighted average remaining lease term of 22.8 years and a weighted average discount rate of 5.79%.

Letters of Credit

As of June 30, 2025, there were $2.1 million outstanding letters of credit related to mortgage requirements at our Maitland, Florida properties.