Commitments and Contingencies

9 Months Ended

Sep. 30, 2025

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 for the three months ending December 31, 2025 and each of the five succeeding fiscal years and thereafter are as follows (dollars in thousands):


Year	Future Lease Payments Due Under Operating Leases
Three Months Ending December 31, 2025	$	114
2026	460
2027	467
2028	470
2029	470
2030	385
Thereafter	2,975
Total anticipated lease payments	$	5,341
Less: amount representing interest	(1,462)
Present value of lease payments	$	3,879


Year	Future Lease Payments Due Under Finance Leases
Three Months Ending December 31, 2025	$	39
2026	172
2027	178
2028	178
2029	178
2030	178
Thereafter	7,098
Total anticipated lease payments	$	8,021
Less: amount representing interest	(5,066)
Present value of lease payments	$	2,955

Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2025 was $0.1 million and $0.4 million, respectively. Rental expense incurred for properties with ground lease obligations during the three and nine months ended September 30, 2024 was $0.1 million and $0.2 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 22.7 years and a weighted average discount rate of 5.80%.

Letters of Credit

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