BrightSpire Capital Inc

16. Commitments and Contingencies

Lending Commitments

The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, perf ormance of capital expenditures and construction in progress with an approved budget. At December 31, 2024, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans held for investment were $105.2 million for senior loans and $1.1 million for mezzanine loans. At December 31, 2023, total unfunded lending commitments for loans held for investment were $155.4 million for senior loans and $12.8 million for mezzanine loans.

Ground Lease Obligation

The Company’s operating leases include ground leases acquired with real estate.

At December 31, 2024 and December 31, 2023, the weighted average remaining lease term was 12.0 years and 14.3 years for ground leases, respectively.

The following table presents ground lease expense, included in property operating expense, for the years ended December 31, 2024, 2023 and 2022 (dollars in thousands):

The operating lease liability for ground leases was determined using a weighted average discount rate of 5.4%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of December 31, 2024 (dollars in thousands):

For these ground leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Office Lease

At December 31, 2024 and December 31, 2023, the weighted average remaining lease term was 4.3 years and 5.3 yearsfor office leases, respectively. The office leases are located in New York, New York and Los Angeles, California.

For the years ended December 31, 2024, 2023 and 2022, the following table summarizes lease expense, included in operating expense (dollars in thousands):

The operating lease liability for the office leases was determined using a weighted average discount rate of 2.4%. As of December 31, 2024, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands):

For these office leases, the Company has elected the practical expedient to combine lease and related nonlease components as a single lease component.

Litigation and Claims

The Company may be involved in litigation and claims in the ordinary course of the business. As of December 31, 2024, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity.