Annual report pursuant to Section 13 and 15(d)

COMMITMENTS AND CONTINGENCIES

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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
Operating Leases
The Company has six properties that are subject to non-cancelable leasehold interest agreements that are classified as operating leases. These lease agreements expire between 2034 and 2092, inclusive of extension options that the Company anticipates exercising. To the extent that the leasehold interest agreements provide for fixed increases throughout the term of the lease, the Company recognizes lease expense on a straight-line basis over the expected lease terms. Rent expense under these leasehold interest agreements are included in property operating expenses in the accompanying statements of operations and amounted to $1.2 million, $1.1 million and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.
In March 2014, the Company entered into a non-cancelable operating lease that expires in July 2020 for its corporate headquarters in Greenwood Village, Colorado. Under the terms of the office lease, the Company obtained an option to extend the lease for an additional term of five years at then current market rates. The office lease provides for an abated rent period and the value of this inducement is being accounted for as a reduction to rent expense over the term of the lease. Rent expense related to this office lease is included in general and administrative expenses in the accompanying statements of operations and amounted to $0.2 million, $0.1 million and $0.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.
As of December 31, 2017, future minimum cash payments under the Company's operating leases are as follows (in thousands):
Year Ending December 31,
 
Real Estate Leasehold Interests
 
Office Lease
 
Total
2018
 
$
1,329

 
$
184

 
$
1,513

2019
 
1,334

 
188

 
1,522

2020
 
1,379

 
112

 
1,491

2021
 
1,404

 

 
1,404

2022
 
1,419

 

 
1,419

2023 through 2092
 
37,498

 

 
37,498

 
 
$
44,363

 
$
484

 
$
44,847


Legal Proceedings
The Company is subject to litigation, claims, and assessments that may arise in the ordinary course of its business activities. Such matters include contractual matters, employment related issues, and regulatory proceedings. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on the Company's financial position, results of operations, or liquidity.