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Ground Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
GROUND LEASES GROUND LEASES
At December 31, 2022, the Company had three properties subject to operating ground leases with a weighted average remaining term of 78 years and one finance ground lease with a remaining term of three years. At December 31, 2022, the Company had right-of-use assets from operating ground leases of $45.8 million included in operating properties or land on the consolidated balance sheet and right-of-use assets from finance ground leases of $3.7 million included in land on the consolidated balance sheet. At December 31, 2022, the Company had lease liabilities for operating and finance ground leases of $49.6 million and $3.6 million, respectively, included in other liabilities on the consolidated balance sheet. The weighted average discount rate used in determining these liabilities associated with ground leases at December 31, 2022 was 4.3%.
Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are reflected in the statement of operations at the time of the change.
For the years ended December 31, 2022, 2021, and 2020, the Company recognized operating ground lease expense of $2.9 million, $4.1 million, and $4.3 million, respectively. For the year ended December 31, 2022 the Company had no variable lease expenses related to ground lease expense, and recognized interest expense related to finance ground leases of $162,000. For the year ended December 31, 2022, the Company paid $2.1 million in cash related to operating ground leases and made $162,000 in cash payments related to financing ground leases.
The following table represents the undiscounted cash flows of our scheduled obligations for future minimum payments for ground leases as of December 31, 2022, with a reconciliation of these cash flows to the related ground lease liabilities in accordance with ASC 842 ($ in thousands):
Operating Ground LeasesFinance Ground Leases
2023$1,925 $162 
20241,933 162 
20251,958 3,676 
20262,006 — 
20272,010 — 
Thereafter173,313 — 
$183,145 $4,000 
Discount(133,571)(445)
Lease liability$49,574 $3,555 

The following table represents the undiscounted cash flows of our scheduled obligations for future minimum payments for ground leases as of December 31, 2021, with a reconciliation of these cash flows to the related ground lease liabilities in accordance with ASC 842 ($ in thousands):
Operating Ground LeasesFinance Ground Leases
2022$1,921 $162 
20231,925 162 
20241,933 162 
20251,958 3,676 
20262,006 — 
Thereafter175,323 — 
$185,066 $4,162 
Discount(135,596)(607)
Lease liability$49,470 $3,555 
GROUND LEASES GROUND LEASES
At December 31, 2022, the Company had three properties subject to operating ground leases with a weighted average remaining term of 78 years and one finance ground lease with a remaining term of three years. At December 31, 2022, the Company had right-of-use assets from operating ground leases of $45.8 million included in operating properties or land on the consolidated balance sheet and right-of-use assets from finance ground leases of $3.7 million included in land on the consolidated balance sheet. At December 31, 2022, the Company had lease liabilities for operating and finance ground leases of $49.6 million and $3.6 million, respectively, included in other liabilities on the consolidated balance sheet. The weighted average discount rate used in determining these liabilities associated with ground leases at December 31, 2022 was 4.3%.
Rental payments on these ground leases are adjusted periodically based on either the Consumer Price Index, changes in developed square feet on the underlying leased asset, or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective leases while payments resulting from changes in the Consumer Price Index or future development are reflected in the statement of operations at the time of the change.
For the years ended December 31, 2022, 2021, and 2020, the Company recognized operating ground lease expense of $2.9 million, $4.1 million, and $4.3 million, respectively. For the year ended December 31, 2022 the Company had no variable lease expenses related to ground lease expense, and recognized interest expense related to finance ground leases of $162,000. For the year ended December 31, 2022, the Company paid $2.1 million in cash related to operating ground leases and made $162,000 in cash payments related to financing ground leases.
The following table represents the undiscounted cash flows of our scheduled obligations for future minimum payments for ground leases as of December 31, 2022, with a reconciliation of these cash flows to the related ground lease liabilities in accordance with ASC 842 ($ in thousands):
Operating Ground LeasesFinance Ground Leases
2023$1,925 $162 
20241,933 162 
20251,958 3,676 
20262,006 — 
20272,010 — 
Thereafter173,313 — 
$183,145 $4,000 
Discount(133,571)(445)
Lease liability$49,574 $3,555 

The following table represents the undiscounted cash flows of our scheduled obligations for future minimum payments for ground leases as of December 31, 2021, with a reconciliation of these cash flows to the related ground lease liabilities in accordance with ASC 842 ($ in thousands):
Operating Ground LeasesFinance Ground Leases
2022$1,921 $162 
20231,925 162 
20241,933 162 
20251,958 3,676 
20262,006 — 
Thereafter175,323 — 
$185,066 $4,162 
Discount(135,596)(607)
Lease liability$49,470 $3,555