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COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2014
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

 

14.  COMMITMENTS AND CONTINGENCIES

 

The Company currently owns six operating self-storage facilities and one self-storage facility currently under development that are subject to ground leases and four other operating self-storage facilities having portions of land that are subject to ground leases. The Company recorded ground rent expense of approximately $2.0 million, $2.2 million, and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively.  Total future minimum rental payments under non-cancelable ground leases are as follows:

 

 

 

Ground Lease

 

 

 

Amount

 

 

 

(in thousands)

 

 

 

 

 

2015

 

$
1,443 

 

2016

 
1,649 

 

2017

 
1,649 

 

2018

 
1,562 

 

2019

 
1,557 

 

2020 and thereafter

 
87,393 

 

 

 

$
95,253 

 

 

The Company has development agreements for the construction of five new self-storage facilities (see note 4), which will require payments of approximately $50.3 million, due in installments upon completion of certain construction milestones, during 2015 and 2016.

 

The Company has been named as a defendant in lawsuits in the ordinary course of business.  In most instances, these claims are covered by the Company’s liability insurance coverage.  Management believes that the ultimate settlement of the suits will not have a material adverse effect on the Company’s financial statements.