Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies.

Commitments and Contingencies

21.        Commitments and Contingencies

In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations.

At December 31, 2014, we had contingent obligations of $735,000 for tenant improvements and leasing costs. In addition, as of December 31, 2014, we had committed $33.6 million under construction contracts, which is expected to be paid in the next twelve months.

We have certain properties that are subject to ground leases which are accounted for as operating leases.  At December 31, 2014, minimum future rental payments for the next five years and thereafter are as follows (dollars in millions):

	Ground Leases			Ground Leases
	Paid by			Paid by
	Realty Income		(1)	Our Tenants		(2)	Total
2015	$	1.0		$	12.7		$	13.7
2016	1.0			12.7			13.7
2017	1.0			12.8			13.8
2018	1.0			12.8			13.8
2019	0.9			12.7			13.6
Thereafter	8.4			131.9			140.3
Total	$	13.3		$	195.6		$	208.9

(1)  Realty Income currently pays the ground lessors directly for the rent under the ground leases.

(2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases.  In the event a tenant fails to pay the ground lease rent, we are primarily responsible.