Note 10—Rent Expense

The Trust leases the land upon which three of its properties are located from third party land owners pursuant to separate ground leases.  The ground leases require fixed annual rental payments and may also include escalation clauses and renewal options. These leases have terms up to 68 years remaining, excluding extension options. As of December 31, 2013, the future minimum lease obligations under non-cancelable ground leases were as follows (in thousands):

The Crescent City Surgical Centre ground lease is paid directly by the tenant per the terms of the lease.  Therefore, the rent expense of $0.1 million, associated with this ground lease is excluded from the Consolidated and Combined Statement of Operations as of December 31, 2013.  On February 21, 2014, the Trust completed the acquisition of a 40% ownership interest in the entity that owns the land at Crescent City Surgical Centre for $1.3 million.