As a lessee we record ROU assets and lease liabilities for the two ground leases at our Kerrow Restaurant Operating Business and a corporate office space, both of which qualified as operating leases. In calculating the lease obligations under both the ground leases and office lease, we used discount rates estimated to be equal to what the Company would have to pay to borrow on a collateralized basis over a similar term, for an amount equal to the lease payments, in a similar economic environment.

Maturities of operating lease liabilities were as follows:


(In thousands)	September 30,
2024 (Three Months)	$	181
2025		470
2026		310
2027		319
2028		319
Thereafter		4,433
Total Payments		6,032
Less: Interest		(1,784	)
Operating Lease Liability	$	4,248

The weighted-average discount rate for operating leases at September 30, 2024 was 4.42%. The weighted-average remaining lease term was 15.8 years.

Rental expense was $230 thousand and $226 thousand for the three months ended September 30, 2024 and 2023, respectively. Rental expense was $689 thousand and $683 thousand for the nine months ended September 30, 2024 and 2023, respectively.

Our leases consist primarily of single-tenant, net leases, in which the tenants are responsible for making payments to third parties for operating expenses such as property taxes, insurance, and other costs associated with the properties leased to them. In leases where costs are paid by the Company and reimbursed by lessees, such payments are considered variable lease payments and recognized in rental revenue.

The following table shows the components of rental revenue.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Lease revenue - operating leases	$	57,144	$	54,882	$	169,255	$	155,149
Variable lease revenue (tenant reimbursements)		2,144		2,361		7,145		7,118
Total Rental Revenue	$	59,288	$	57,243	$	176,400	$	162,267

The following table presents the scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases. The table presents future minimum lease payments due during the initial lease term only as lease renewal periods are exercisable at the option of the lessee.


(In thousands)	September 30,
2024 (Three Months)	$	57,563
2025		230,150
2026		229,198
2027		221,359
2028		195,210
Thereafter		893,569
Total Future Minimum Lease Payments	$	1,827,049

As of September 30, 2024 and December 31, 2023, the Company had finance ground lease assets aggregating $13.9 million and $14.0 million, respectively. These assets are included in intangible lease assets, net in the Consolidated Balance Sheets. The Company did not recognize a lease liability as no payments are due in the future under the leases. The Company’s ground lease assets have remaining lease terms ranging from 59 years to 94 years, with options to extend certain of the lease terms for additional ninety-nine year terms, and the option to purchase the assets. The weighted average remaining non-cancelable lease term for the ground leases was 89 years at September 30, 2024.