Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
9 Months Ended
Sep. 30, 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 for the three months ending December 31, 2022 and each of the five succeeding fiscal years and thereafter is as follows (dollars in thousands):
Year Future Lease Payments Due Under Operating Leases
Three Months Ending December 31, 2022 $ 123 
2023 492 
2024 493 
2025 494 
2026 498 
2027 506 
Thereafter 6,301 
Total anticipated lease payments $ 8,907 
Less: amount representing interest (3,547)
Present value of lease payments $ 5,360 

Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2022 was $0.1 million and $0.3 million, respectively, and during the three and nine months ended September 30, 2021 was $0.1 million and $0.4 million, respectively. 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 18.7 years and a weighted average discount rate of 5.33%.

Letters of Credit

As of September 30, 2022, there was $17.1 million outstanding under letters of credit. These letters of credit are not reflected on our condensed consolidated balance sheets.