XML 74 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
Ground and Air Rights Leases
9 Months Ended
Sep. 30, 2015
Leases [Abstract]  
Ground and Air Rights Leases

8.

Ground and Air Rights Leases

During the nine months ended September 30, 2015, in conjunction with the Novi Orthopaedic Center, UT Cancer Institute, and Columbia MOBs detailed in Note 3. “Acquisitions,” the Company acquired interests in five additional ground leases. The Novi Orthopaedic Center, UT Cancer Institute, and Columbia MOBs ground leases represent operating leases with scheduled payments over the life of the respective lease expiring in 2045 to 2076.

Overall, under the terms of its ground and air rights lease agreements, the Company is responsible for the monthly rental payments. These amounts are billed monthly and recorded as property operating expenses in the accompanying condensed consolidated statements of operations.  In some cases, the Company is able to pass this expense through to its tenants as tenant reimbursement income.  For the quarter and nine months ended September 30, 2015, the Company incurred approximately $0.7 million and $1.8 million, respectively, in ground and air rights lease expense, including any straight-line rent adjustments.  For the quarter and nine months ended September 30, 2014, the Company incurred approximately $0.04 million and $0.1 million, respectively, in ground and air rights lease expense, including any straight-line rent adjustments.

The following is a schedule of future minimum lease payments to be paid under the ground and air rights leases for the remainder of 2015, each of the next four years and thereafter, in the aggregate, as of September 30, 2015 (in thousands):

 

2015

 

$

484

 

2016

 

 

1,957

 

2017

 

 

1,984

 

2018

 

 

2,016

 

2019

 

 

2,041

 

Thereafter

 

 

115,515

 

 

 

$

123,997