Ground Lease

6 Months Ended

Jun. 30, 2020

Lessee Disclosure [Abstract]

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 market. As of June 30, 2020, the right-of-use asset carrying value of this ground lease was $7.5 million and the ground lease liability was $10.9 million.

We incurred ground rent expense of $183 thousand for the three months ended June 30, 2020 and 2019, and $365 thousand and $363 thousand for the six months ended June 30, 2020 and 2019, respectively, which is included in Office expenses in our consolidated statements of operations. 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, 2020:

Twelve months ending June 30:	(In thousands)
2021	$	733
2022	733
2023	733
2024	733
2025	733
Thereafter	45,078
Total future minimum lease payments	$	48,743