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Commitments
 12 Months Ended
Dec. 31, 2011
Commitments  
Commitments

9.     Commitments

 

The Company’s commercial real estate operations include the leasing of office buildings and industrial properties subject to leases with terms greater than one year. The leases expire at various dates through 2023.  The following is a schedule of approximate future minimum rental income on non-cancelable operating leases as of December 31, 2011:

 

(in thousands)

 

Year ending
December 31,

 

 

 

 

 

2012

 

$

107,788

 

2013

 

105,032

 

2014

 

101,659

 

2015

 

86,968

 

2016

 

78,264

 

Thereafter (2017-2023)

 

193,637

 

 

 

$

673,348

 

 

The Company leases its corporate office space under an operating lease that commenced September 1, 2010 for a seven year term and has a five-year extension option.  The lease includes a base annual rent and additional rent for the Company’s share of taxes and operating costs and expires in 2017.  Future minimum lease payments are as follows:

 

(in thousands)

 

Year ending
December 31,

 

2012

 

$

355

 

2013

 

405

 

2014

 

417

 

2015

 

424

 

2016

 

428

 

Thereafter

 

324

 

 

 

$

2,353

 

 

Rent expense was approximately $400,000, $366,000 and $353,000 for the years ended December 31, 2011, 2010 and 2009, respectively, and is included in selling, general and administration expenses in the consolidated statements of income.

 

The Company has entered into the Sponsored REIT Loans described in Note 4, which provide for up to $192.0 million in borrowings of which $140.5 million have been drawn and are outstanding as of December 31, 2011.  The Company anticipates that any advances made will be repaid at their maturity or earlier from long term financing of the underlying properties, cash flows of the underlying properties or some other capital events.