Douglas Emmett Inc
For the period ended Jun 30, 2024. Filed Aug 9, 2024.
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Jun 30, 2024 · Filed Aug 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Ground Lease
- Ground Lease
We pay rent under a ground lease located in Honolulu, Hawaii, which expires on December 31, 2086. The rent is fixed at $733 thousand per year until February 28, 2029, after which it will reset to the greater of the existing ground rent or the market rent at the time.
As of June 30, 2024, the ground lease right-of-use asset carrying value was $7.4 million and the ground lease liability was $10.8 million. Ground rent expense, which is included in Office expenses on our consolidated statements of operations, was:
$183 thousand for each of the three month periods ended June 30, 2024 and 2023, and
$366 thousand for each of the six month periods ended June 30, 2024 and 2023.
The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of June 30, 2024:
| Twelve months ending June 30: | (In thousands) |
|---|---|
| 2025 | $733 |
| 2026 | 733 |
| 2027 | 733 |
| 2028 | 733 |
| 2029 | 733 |
| Thereafter | 42,147 |
| Total future minimum ground lease payments | $45,812 |
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