Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.21.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIESOperating Obligations
In connection with the execution of certain lease agreements, we have committed to provide capital improvements on certain of our farms, which are summarized in the table below (dollars in thousands):
Farm
Location		 Farm
Acreage		 Total
Commitment
Obligated
Completion
Date(1)
Amount Expended
or Accrued as of
March 31, 2021
Hillsborough, FL 55 $ 2,250 
(2)
 Q2 2021 $ 1,073 
Tulare, CA 160 700 
(2)
 Q2 2021 — 
Wicomico & Caroline, MD, and Sussex, DE 833 115 

Q3 2021 36 
Napa, CA 270 1,548 
(2)
 Q3 2023 — 
Santa Barbara, CA 271 4,000 
(2)
 Q3 2024 2,427 
Columbia, OR 157 1,800 
(2)
 Q3 2024 1,146 
Collier & Hendry, FL 3,612 2,000 
(2)
 Q2 2025 — 
(1)Our obligation to provide capital to fund these improvements does not extend beyond these respective dates.
(2)Pursuant to contractual agreements, we will earn additional rent on the cost of these capital improvements as the funds are disbursed by us.
Ground Lease Obligations
We are obligated as lessee under three ground leases. Future minimum lease payments due under the remaining non-cancelable terms of these leases as of March 31, 2021, is as follows (dollars in thousands):
Period
Future Lease Payments(1)
For the remaining nine months ending December 31: 2021 $ 33 
For the fiscal years ending December 31: 2022 70 
2023 70 
2024 70 
2025 40 
2026 40 
Thereafter 600 
Total undiscounted lease payments 923 
Less: imputed interest (279)
Present value of lease payments $ 644 
(1)Certain annual lease payments are set at the beginning of each year to then-current market rates (as determined by the State of Arizona, as lessor). The amounts shown above represent estimated amounts based on the lease rates currently in place.
As a result of these ground leases, we recorded lease expense (included within Property operating expenses on the accompanying Consolidated Statement of Operations and Comprehensive Income) of approximately $14,000 and $12,000 during the three months ended March 31, 2021 and 2020, respectively.
Litigation
In the ordinary course of business, we may be involved in legal proceedings from time to time. We are not currently subject to any material known or threatened litigation.