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REAL ESTATE PROPERTIES | 12 Months Ended
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Dec. 31, 2022
Real Estate [Abstract] |
REAL ESTATE PROPERTIES | REAL ESTATE PROPERTIES AND DEVELOPMENT AND VALUE-ADD PROPERTIES The Company’s Real estate properties and Development and value-add properties at December 31, 2022 and 2021 were as follows:
| December 31,
2022 |  | 2021
(In thousands)
Real estate properties: |  |  |
Land | $ | 730,445 |  |  | 544,505 |
Buildings and building improvements | 3,012,319 |  |  | 2,408,944 |
Tenant and other improvements | 633,817 |  |  | 570,627 |
Right of use assets — Ground leases (operating) (1) | 19,391 |  |  | 22,635 |
Development and value-add properties (2) | 538,449 |  |  | 504,614 |
| 4,934,421 |  |  | 4,051,325 |
Less accumulated depreciation | (1,150,814) |  |  | (1,035,617) |
| $ | 3,783,607 |  |  | 3,015,708 |
(1)See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases. (2)Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. Acquired properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% occupied as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20% or greater of the acquisition cost will be spent to redevelop the property. A summary of real estate properties acquired for the years ended December 31, 2022, 2021 and 2020 follows:
REAL ESTATE PROPERTIES ACQUIRED |  | Location |  | Size |  | Date Acquired |  | Cost (1)
|  |  |  | (Square feet) |  |  |  | (In thousands)
2022 |  |  |  |  |  |  |  |
OPERATING PROPERTIES ACQUIRED (2) |  |  |  |  |  |  |  |
Cebrian Distribution Center and Reed Distribution Center (3) |  | Sacramento, CA |  | 329,000 |  |  | 06/01/2022 |  | $ | 49,726 |
6 th Street Business Center, Benicia Distribution Center 1-5, Ettie Business Center, Laura Alice Business Center, Preston Distribution Center, Sinclair Distribution Center, Transit Distribution Center and Whipple Business Center (3) |  | San Francisco, CA |  | 1,377,000 |  |  | 06/01/2022 |  | 309,404 |
Total operating property acquisitions |  |  |  | 1,706,000 |  |  |  |  | 359,130 |
VALUE-ADD PROPERTIES ACQUIRED (4) |  |  |  |  |  |  |  |
Cypress Preserve 1 & 2 |  | Houston, TX |  | 516,000 |  |  | 03/28/2022 |  | 54,462 |
Zephyr Distribution Center |  | San Francisco, CA |  | 82,000 |  |  | 04/08/2022 |  | 29,017 |
Mesa Gateway Commerce Center |  | Phoenix, AZ |  | 147,000 |  |  | 04/15/2022 |  | 18,315 |
Access Point 3 |  | Greenville, SC |  | 299,000 |  |  | 07/12/2022 |  | 21,127 |
Total value-add property acquisitions |  |  |  | 1,044,000 |  |  |  |  | 122,921 |
Total acquired assets in 2022 (5) |  |  |  | 2,750,000 |  |  |  |  | $ | 482,051 |
2021 |  |  |  |  |  |  |  |
OPERATING PROPERTIES ACQUIRED (2) |  |  |  |  |  |  |  |
Southpark Distribution Center 2 |  | Phoenix, AZ |  | 79,000 |  |  | 06/10/2021 |  | $ | 9,177 |
DFW Global Logistics Centre |  | Dallas, TX |  | 611,000 |  |  | 08/26/2021 |  | 89,829 |
Progress Center 3 |  | Atlanta, GA |  | 50,000 |  |  | 09/23/2021 |  | 5,000 |
Texas Avenue |  | Austin, TX |  | 20,000 |  |  | 10/15/2021 |  | 4,143 |
Total operating property acquisitions |  |  |  | 760,000 |  |  |  |  | 108,149 |
VALUE-ADD PROPERTIES ACQUIRED (4) |  |  |  |  |  |  |  |
Access Point 1 |  | Greenville, SC |  | 156,000 |  |  | 01/15/2021 |  | 10,501 |
Northpoint 200 |  | Atlanta, GA |  | 79,000 |  |  | 01/21/2021 |  | 6,516 |
Access Point 2 |  | Greenville, SC |  | 159,000 |  |  | 05/19/2021 |  | 10,743 |
Cherokee 75 Business Center 2 |  | Atlanta, GA |  | 105,000 |  |  | 06/17/2021 |  | 8,837 |
Siempre Viva Distribution Center 3-6 |  | San Diego, CA |  | 547,000 |  |  | 12/01/2021 |  | 134,479 |
Total value-add property acquisitions |  |  |  | 1,046,000 |  |  |  |  | 171,076 |
Total acquired assets in 2021 (5) |  |  |  | 1,806,000 |  |  |  |  | $ | 279,225 |
2020 |  |  |  |  |  |  |  |
OPERATING PROPERTIES ACQUIRED (2) |  |  |  |  |  |  |  |
Wells Point One |  | Austin, TX |  | 50,000 |  |  | 02/28/2020 |  | $ | 6,231 |
Cherokee 75 Business Center 1 |  | Atlanta, GA |  | 85,000 |  |  | 12/15/2020 |  | 8,323 |
The Rock at Star Business Park |  | Dallas, TX |  | 212,000 |  |  | 12/17/2020 |  | 34,102 |
Total operating property acquisitions |  |  |  | 347,000 |  |  |  |  | 48,656 |
VALUE-ADD PROPERTIES ACQUIRED (4) |  |  |  |  |  |  |  |
Rancho Distribution Center |  | Los Angeles, CA |  | 162,000 |  |  | 10/15/2020 |  | 27,862 |
Total acquired assets in 2020 (5) |  |  |  | 509,000 |  |  |  |  | $ | 76,518 |
(1)Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2)Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. (3)The Company acquired these operating properties along with two land parcels, also in Sacramento, CA and San Francisco, CA, in connection with its acquisition of Tulloch Corporation in June 2022. Size and cost are presented on an aggregate basis for the properties located in Sacramento, CA and San Francisco, CA, respectively. In consideration for this acquisition, the Company assumed a $60,000,000 loan and issued 1,868,809 shares of the Company’s common stock. The acquisition date fair value of the loan assumed was $60,000,000, and the acquisition date fair value of the common shares, which was based on the closing share price on the acquisition date, was $303,756,000. (4)Value-add properties are defined in Note 2. (5)Excludes acquired development land as detailed below. Also during 2022, EastGroup purchased 456.3 acres of development land in 10 cities for $123,717,000. The land acquisitions in San Francisco and Sacramento were acquired in connection with the Company's acquisition of Tulloch Corporation in June 2022. Also in the three months ended December 31, 2022, the Company acquired the 1% noncontrolling partnership interest in Speed Distribution Center in San Diego for $18,599,000. EastGroup continues to control and now owns 100% of the property. Sales of Real Estate The Company sold operating properties during 2022, 2021 and 2020 as shown in the table below. The results of operations and gains and losses on sales for the properties sold during the periods presented are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income. The gains and losses on sales are included in Gain on sales of real estate investments. The Company did not consider its sales in 2022, 2021 or 2020 to be disposals of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results. A summary of Gain on sales of real estate investments for the years ended December 31, 2022, 2021 and 2020 follows:
Real Estate Properties |  | Location |  | Size (Square Feet) |  | Date Sold |  | Net Sales Price |  | Basis |  | Recognized Gain
|  |  |  |  |  |  |  | (In thousands)
2022 |  |  |  |  |  |  |  |  |  |  |  |
Metro Business Park |  | Phoenix, AZ |  | 189,000 |  |  | 01/06/2022 |  | $ | 32,851 |  |  | 5,880 |  |  | 26,971 |
Cypress Creek Business Park (1) |  | Fort Lauderdale, FL |  | 56,000 |  |  | 03/31/2022 |  | 5,282 |  |  | 1,901 |  |  | 3,381 |
World Houston 15 East |  | Houston, TX |  | 42,000 |  |  | 05/11/2022 |  | 12,873 |  |  | 2,226 |  |  | 10,647 |
Total for 2022 |  |  |  |  |  |  |  | $ | 51,006 |  |  | 10,007 |  |  | 40,999 |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Jetport Commerce Park |  | Tampa, FL |  | 284,000 |  |  | 11/09/2021 |  | $ | 44,260 |  |  | 5,401 |  |  | 38,859 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
University Business Center 120 (2) |  | Santa Barbara, CA |  | 46,000 |  |  | 12/01/2020 |  | $ | 10,342 |  |  | 4,007 |  |  | 6,335 |
Central Green |  | Houston, TX |  | 80,000 |  |  | 12/23/2020 |  | 10,168 |  |  | 3,358 |  |  | 6,810 |
Total for 2020 |  |  |  |  |  |  |  | $ | 20,510 |  |  | 7,365 |  |  | 13,145 |
(1)Cypress Creek Business Park is located on a ground lease. In conjunction with the sale of the property, the Company fully amortized the associated right-of-use asset and liability of $1,745,000. (2)EastGroup owned 80% of University Business Center 120 through a joint venture partnership. EastGroup sold its 80% share of the joint venture, and the partnership was dissolved. The information shown for this transaction represents EastGroup’s 80% ownership. The table above includes sales of operating properties. During 2022, 2021 and 2020, there were no land sales. Development and Value-Add Properties The Company’s development and value-add program as of December 31, 2022, was comprised of the properties detailed in the table below. Costs incurred include capitalization of interest costs during the period of construction. The interest costs capitalized on development projects for 2022 were $12,393,000 compared to $9,028,000 for 2021 and $9,651,000 for 2020. In addition, EastGroup capitalized internal development costs of $9,985,000 during the year ended December 31, 2022, compared to $7,713,000 during 2021 and $6,689,000 in 2020. Total capital invested for development and value-add properties during 2022 was $494,073,000, which primarily consisted of costs of $384,541,000 as detailed in the Development and Value-Add Properties Activity table below, $110,623,000 as detailed in the Development and Value-Add Properties Transferred to the Real Estate Properties Portfolio During 2022 table below and costs of $10,989,000 on projects subsequent to transfer to Real estate properties. These costs were partially offset by development spending prepaid in prior periods. Additionally, the Company acquired development land in the acquisition of Tulloch Corporation through the issuance of shares of the Company's common stock and the assumption of certain indebtedness, which was immediately repaid. The capitalized costs incurred on development projects subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs). The activity of the Company's Development and Value-Add Properties for the year ended December 31, 2022 follows:
DEVELOPMENT AND VALUE-ADD PROPERTIES ACTIVITY |  |  |  | Costs Incurred |  |  |  | Anticipated Building Conversion Date
|  |  | Costs Transferred in 2022 (1) |  | For the Year Ended 12/31/22 |  | Cumulative as of 12/31/22 |  | Projected Total Costs (2) |
|  |  |  | (In thousands) |  |
|  | (Unaudited) |  |  |  |  |  |  |  | (Unaudited) |  | (Unaudited)
LEASE-UP |  | Building Size (Square feet) |  |  |  |  |  |  |  |  |  |
Cypress Preserve 1 & 2, Houston, TX (3) |  | 516,000 |  |  | $ | — |  |  | 54,081 |  |  | 54,081 |  |  | 57,800 |  |  | 03/23
Grand West Crossing 1, Houston, TX |  | 121,000 |  |  | — |  |  | 4,168 |  |  | 13,037 |  |  | 15,700 |  |  | 04/23
Zephyr, San Francisco, CA (3) |  | 82,000 |  |  | — |  |  | 29,028 |  |  | 29,028 |  |  | 29,800 |  |  | 04/23
Access Point 3, Greenville, SC (3) |  | 299,000 |  |  | — |  |  | 22,632 |  |  | 22,632 |  |  | 25,400 |  |  | 07/23
McKinney 3 & 4, Dallas, TX |  | 212,000 |  |  | — |  |  | 13,714 |  |  | 24,152 |  |  | 27,000 |  |  | 07/23
Grand Oaks 75 4, Tampa, FL |  | 185,000 |  |  | — |  |  | 9,637 |  |  | 16,015 |  |  | 17,900 |  |  | 09/23
Total Lease-Up |  | 1,415,000 |  |  | — |  |  | 133,260 |  |  | 158,945 |  |  | 173,600 |  |  |
UNDER CONSTRUCTION |  |  |  |  |  |  |  |  |  |  |  |
SunCoast 11, Fort Myers, FL |  | 79,000 |  |  | 1,524 |  |  | 7,651 |  |  | 9,175 |  |  | 9,900 |  |  | 04/23
Arlington Tech 3, Fort Worth, TX |  | 77,000 |  |  | 1,980 |  |  | 6,420 |  |  | 8,400 |  |  | 10,300 |  |  | 02/24
Gateway 2, Miami, FL |  | 133,000 |  |  | 8,049 |  |  | 10,139 |  |  | 18,188 |  |  | 23,700 |  |  | 02/24
Hillside 1, Greenville, SC |  | 122,000 |  |  | 632 |  |  | 8,846 |  |  | 9,478 |  |  | 11,600 |  |  | 02/24
I-20 West Business Center, Atlanta, GA |  | 155,000 |  |  | — |  |  | 10,175 |  |  | 13,139 |  |  | 15,500 |  |  | 02/24
LakePort 4 & 5, Dallas, TX |  | 177,000 |  |  | — |  |  | 10,767 |  |  | 18,705 |  |  | 24,000 |  |  | 02/24
Horizon West 1, Orlando, FL |  | 97,000 |  |  | 3,730 |  |  | 5,839 |  |  | 9,569 |  |  | 13,200 |  |  | 03/24
Steele Creek 11 & 12, Charlotte, NC |  | 241,000 |  |  | 2,857 |  |  | 13,923 |  |  | 16,780 |  |  | 25,900 |  |  | 04/24
Springwood 1 & 2, Houston, TX |  | 292,000 |  |  | 6,741 |  |  | 16,232 |  |  | 22,973 |  |  | 33,300 |  |  | 05/24
Stonefield 35 1-3, Austin, TX |  | 274,000 |  |  | 10,279 |  |  | 6,040 |  |  | 16,319 |  |  | 35,300 |  |  | 06/24
SunCoast 10, Fort Myers, FL |  | 100,000 |  |  | 1,624 |  |  | 1,344 |  |  | 2,968 |  |  | 13,600 |  |  | 06/24
Basswood 3-5, Fort Worth, TX |  | 351,000 |  |  | 7,476 |  |  | 886 |  |  | 8,362 |  |  | 45,000 |  |  | 08/24
McKinney 1 & 2, Dallas, TX |  | 172,000 |  |  | 4,261 |  |  | 2,240 |  |  | 6,501 |  |  | 27,300 |  |  | 08/24
Cass White 1 & 2, Atlanta, GA |  | 296,000 |  |  | 3,534 |  |  | 1,795 |  |  | 5,329 |  |  | 31,900 |  |  | 10/24
Total Under Construction |  | 2,566,000 |  |  | 52,687 |  |  | 102,297 |  |  | 165,886 |  |  | 320,500 |  |  |
Total Lease-Up and Under Construction |  | 3,981,000 |  |  | 52,687 |  |  | 235,557 |  |  | 324,831 |  |  | 494,100 |  |  |
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND) |  | Estimated Building Size (Square feet) |  |  |  |  |  |  |  |  |  |
Phoenix, AZ |  | 655,000 |  |  | — |  |  | 15,395 |  |  | 15,395 |  |  |  |  |
Sacramento, CA |  | 82,000 |  |  | — |  |  | 3,130 |  |  | 3,130 |  |  |  |  |
San Francisco, CA |  | 65,000 |  |  | — |  |  | 3,561 |  |  | 3,561 |  |  |  |  |
Fort Myers, FL |  | 364,000 |  |  | (3,148) |  |  | 2,693 |  |  | 7,843 |  |  |  |  |
Miami, FL |  | 510,000 |  |  | (8,049) |  |  | 18,035 |  |  | 24,317 |  |  |  |  |
Orlando, FL |  | 1,053,000 |  |  | (9,906) |  |  | 8,338 |  |  | 24,670 |  |  |  |  |
Tampa, FL |  | 32,000 |  |  | — |  |  | — |  |  | 825 |  |  |  |  |
Atlanta, GA |  | 1,490,000 |  |  | (3,534) |  |  | 13,189 |  |  | 14,713 |  |  |  |  |
Jackson, MS |  | 28,000 |  |  | — |  |  | — |  |  | 706 |  |  |  |  |
Charlotte, NC |  | 1,146,000 |  |  | (2,857) |  |  | 1,475 |  |  | 13,722 |  |  |  |  |
Greenville, SC |  | 476,000 |  |  | (632) |  |  | 5,353 |  |  | 6,457 |  |  |  |  |
Austin, TX |  | 1,557,000 |  |  | (10,279) |  |  | 50,699 |  |  | 46,851 |  |  |  |  |
Dallas, TX |  | — |  |  | (4,261) |  |  | 457 |  |  | 4,594 |  |  |  |  |
Fort Worth, TX |  | 313,000 |  |  | (9,456) |  |  | 1,376 |  |  | 7,247 |  |  |  |  |
Houston, TX |  | 1,536,000 |  |  | (11,247) |  |  | 17,110 |  |  | 30,696 |  |  |  |  |
San Antonio, TX |  | 423,000 |  |  | — |  |  | 8,173 |  |  | 8,891 |  |  |  |  |
Total Prospective Development |  | 9,730,000 |  |  | (63,369) |  |  | 148,984 |  |  | 213,618 |  |  |  |  |
Total Development and Value-Add Properties |  | 13,711,000 |  |  | $ | (10,682) |  |  | 384,541 |  |  | 538,449 |  |  |  |  |
The Development and Value-Add Properties table is continued on the following page.
DEVELOPMENT AND VALUE-ADD PROPERTIES TRANSFERRED TO THE REAL ESTATE PROPERTIES PORTFOLIO DURING 2022 |  |  |  | Costs Incurred |  |  |  |
|  |  | Costs Transferred in 2022 (1) |  | For the Year Ended 12/31/22 |  | Cumulative as of 12/31/22 (4) |  |  |  |
|  | (Unaudited) |  | (In thousands) |  |  |  | (Unaudited)
|  | Building Size (Square feet) |  |  |  |  |  | Building Conversion Date
Access Point 1, Greenville, SC (3) |  | 156,000 |  |  | $ | — |  |  | 7 |  |  | 12,529 |  |  |  |  | 01/22
Speed Distribution Center, San Diego, CA |  | 519,000 |  |  | — |  |  | 2,884 |  |  | 70,702 |  |  |  |  | 03/22
Access Point 2, Greenville, SC (3) |  | 159,000 |  |  | — |  |  | 601 |  |  | 12,232 |  |  |  |  | 05/22
Grand Oaks 75 3, Tampa, FL |  | 136,000 |  |  | — |  |  | 1,205 |  |  | 11,397 |  |  |  |  | 06/22
Siempre Viva 3-6, San Diego, CA (3) |  | 547,000 |  |  | — |  |  | 595 |  |  | 133,283 |  |  |  |  | 06/22
Steele Creek 8, Charlotte, NC |  | 72,000 |  |  | — |  |  | 5,142 |  |  | 7,870 |  |  |  |  | 07/22
CreekView 9 & 10, Dallas, TX |  | 145,000 |  |  | — |  |  | 4,210 |  |  | 15,546 |  |  |  |  | 08/22
Gateway 3, Miami, FL |  | 133,000 |  |  | — |  |  | 4,903 |  |  | 18,069 |  |  |  |  | 08/22
Ridgeview 3, San Antonio, TX |  | 88,000 |  |  | — |  |  | 3,513 |  |  | 9,317 |  |  |  |  | 08/22
Americas Ten 2, El Paso, TX |  | 169,000 |  |  | — |  |  | 5,254 |  |  | 14,354 |  |  |  |  | 09/22
Horizon West 2 & 3, Orlando, FL |  | 210,000 |  |  | — |  |  | 1,597 |  |  | 18,787 |  |  |  |  | 09/22
Mesa Gateway, Phoenix, AZ (3) |  | 147,000 |  |  | — |  |  | 18,696 |  |  | 18,696 |  |  |  |  | 11/22
World Houston 47, Houston, TX |  | 139,000 |  |  | 4,506 |  |  | 12,517 |  |  | 17,023 |  |  |  |  | 11/22
45 Crossing, Austin, TX |  | 177,000 |  |  | — |  |  | 7,998 |  |  | 25,058 |  |  |  |  | 12/22
Basswood 1 & 2, Fort Worth, TX |  | 237,000 |  |  | — |  |  | 7,237 |  |  | 22,466 |  |  |  |  | 12/22
Horizon West 4, Orlando, FL |  | 295,000 |  |  | 6,176 |  |  | 18,201 |  |  | 24,377 |  |  |  |  | 12/22
SunCoast 12, Fort Myers, FL |  | 79,000 |  |  | — |  |  | 3,928 |  |  | 8,106 |  |  |  |  | 12/22
Tri-County Crossing 5, San Antonio, TX |  | 106,000 |  |  | — |  |  | 5,544 |  |  | 11,144 |  |  |  |  | 12/22
Tri-County Crossing 6, San Antonio, TX |  | 124,000 |  |  | — |  |  | 6,591 |  |  | 10,373 |  |  |  |  | 12/22
Total Transferred to Real Estate Properties |  | 3,638,000 |  |  | $ | 10,682 |  |  | 110,623 |  |  | 461,329 |  |  |  |  |
(1)Represents costs transferred from Prospective Development (primarily land) to Under Construction during the period. Negative amounts represent land inventory costs transferred to Under Construction. (2)Included in these costs are development obligations of $134.8 million and tenant improvement obligations of $15.0 million on properties under development. (3)Represents value-add acquisitions. (4)Represents cumulative costs at the date of transfer. Ground Leases As of December 31, 2021, the Company operated two properties in Florida, four properties in Texas and one property in Arizona that are subject to ground leases. During the year ended December 31, 2022, EastGroup sold Cypress Business Park, which was located on a ground lease. In conjunction with the sale of the property, the lease was transferred to the buyer and the Company fully amortized the associated right-of-use asset and liability of $1,745,000. The remaining properties with ground leases have terms of 40 to 50 years, expiration dates of August 2031 to October 2058, and renewal options of 15 to 35 years, except for the one lease in Arizona which is automatically and perpetually renewed annually. The Company has included renewal options in the lease terms for calculating the ground lease assets and liabilities as the Company is reasonably certain it will exercise these options. Total ground lease expenditures for the years ended December 31, 2022, 2021 and 2020 were $1,755,000, $1,354,000 and $1,051,000, respectively. Payments are subject to increases at 3 to 10 year intervals based upon the agreed or appraised fair market value of the leased premises on the adjustment date or the Consumer Price Index percentage increase since the base rent date. These future changes in payments will be considered variable payments and will not impact the assessment of the asset or liability unless there is a significant event that triggers reassessment, such as amendment with a change in the terms of the lease. The weighted-average remaining lease term as of December 31, 2022, for the ground leases is 36 years. EastGroup applies ASC 842, Leases, for its ground leases, which are classified as operating leases. There were no new ground leases in 2022 or 2020. In August 2021, the Company acquired DFW Global Logistics Centre in Dallas, which is located on land under a ground lease. The Company recorded a right of use asset of $12,708,000 in connection with this acquisition. As of December 31, 2022 and 2021, the unamortized balances of the Company’s right of use assets for its ground leases were $19,391,000 and $22,635,000, respectively. The right of use assets for ground leases are included in Real estate properties on the Consolidated Balance Sheets. The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2022: Future Minimum Ground Lease Payments as of December 31, 2022
Years Ending December 31, |  | (In thousands)
2023 |  | $ | 1,519 |
2024 |  | 1,572 |
2025 |  | 1,606 |
2026 |  | 1,643 |
2027 |  | 1,643 |
Thereafter |  | 53,758 |
Total minimum payments |  | 61,741 |
Imputed interest (1) |  | (41,835) |
Total ground lease liabilities |  | $ | 19,906 |
(1)As the Company’s leases do not provide an implicit rate, in order to calculate the present value of the remaining ground lease payments, the Company used its incremental borrowing rate, adjusted for a number of factors, including the long-term nature of the ground leases, the Company’s estimated borrowing costs, and the estimated fair value of the underlying land, to determine the imputed interest for its ground leases.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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