Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-15371 | |
Entity Registrant Name | iStar Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 95-6881527 | |
Entity Address, Address Line One | 1114 Avenue of the Americas, 39th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 930-9400 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Common Stock, Shares, Outstanding | 73,976,922 | |
Entity Central Index Key | 0001095651 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $0.001 par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | STAR | |
Security Exchange Name | NYSE | |
8.00% Series D Cumulative Redeemable Preferred Stock, $0.001 par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 8.00% Series D Cumulative Redeemable Preferred Stock,$0.001 par value | |
Trading Symbol | STAR-PD | |
Security Exchange Name | NYSE | |
7.65% Series G Cumulative Redeemable Preferred Stock, $0.001 par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.65% Series G Cumulative Redeemable Preferred Stock, $0.001 par value | |
Trading Symbol | STAR-PG | |
Security Exchange Name | NYSE | |
7.50% Series I Cumulative Redeemable Preferred Stock, $0.001 par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 7.50% Series I Cumulative Redeemable Preferred Stock, $0.001 par value | |
Trading Symbol | STAR-PI | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real estate | ||
Real estate, at cost | $ 1,744,613 | $ 1,761,079 |
Less: accumulated depreciation | (257,518) | (233,860) |
Real estate, net | 1,487,095 | 1,527,219 |
Real estate available and held for sale | 5,519 | 8,650 |
Total real estate | 1,492,614 | 1,535,869 |
Net investment in leases ($11,113 of allowances as of September 30, 2020) | 420,417 | 418,915 |
Land and development, net | 488,916 | 580,545 |
Loans receivable and other lending investments, net ($33,447 and $28,634 of allowances as of September 30, 2020 and December 31, 2019, respectively) | 765,073 | 827,861 |
Other investments | 1,123,093 | 907,875 |
Cash and cash equivalents | 88,187 | 307,172 |
Accrued interest and operating lease income receivable, net | 8,053 | 10,162 |
Deferred operating lease income receivable, net | 55,625 | 54,222 |
Deferred expenses and other assets, net | 446,145 | 442,488 |
Total assets | 4,888,123 | 5,085,109 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 444,956 | 424,374 |
Liabilities associated with properties held for sale | 105 | 57 |
Loan participations payable, net | 41,931 | 35,638 |
Debt obligations, net | 3,307,683 | 3,387,080 |
Total liabilities | 3,794,675 | 3,847,149 |
Commitments and contingencies (refer to Note 12) | ||
iStar Inc. shareholders' equity: | ||
Preferred Stock Series D, G and I, liquidation preference $25.00 per share (refer to Note 14) | 12 | 12 |
Common Stock, $0.001 par value, 200,000 shares authorized, 74,433 and 77,810 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 74 | 78 |
Additional paid-in capital | 3,247,453 | 3,284,877 |
Accumulated deficit | (2,289,668) | (2,205,838) |
Accumulated other comprehensive loss (refer to Note 14) | (57,111) | (38,707) |
Total iStar Inc. shareholders' equity | 900,760 | 1,040,422 |
Noncontrolling interests | 192,688 | 197,538 |
Total equity | 1,093,448 | 1,237,960 |
Total liabilities and equity | $ 4,888,123 | $ 5,085,109 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for losses on net investment in leases at end of period | $ 11,113 | $ 0 |
Loans receivable and other lending investments, allowances | $ 33,447 | $ 28,634 |
Liquidation preference (in dollars per share) | $ 25 | $ 25 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 200,000 | 200,000 |
Common Stock, shares issued (in shares) | 74,433 | 77,810 |
Common Stock, shares outstanding (in shares) | 74,433 | 77,810 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 115,054 | $ 145,338 | $ 384,930 | $ 350,608 |
Costs and expenses: | ||||
Interest expense | 42,407 | 46,522 | 127,748 | 136,851 |
Depreciation and amortization | 14,621 | 14,199 | 43,407 | 43,586 |
General and administrative | 19,868 | 24,110 | 73,138 | 72,512 |
(Recovery of) provision for loan losses | (1,976) | (3,805) | 4,093 | (3,792) |
Provision for losses on net investment in leases | 175 | 0 | 2,001 | 0 |
Impairment of assets | 0 | 0 | 6,491 | 4,953 |
Other expense | 73 | 407 | 351 | 12,798 |
Total costs and expenses | 113,461 | 152,721 | 425,641 | 409,858 |
Income from sales of real estate | 6,055 | 3,476 | 6,118 | 233,406 |
Income (loss) from operations before earnings from equity method investments and other items | 7,648 | (3,907) | (34,593) | 174,156 |
Loss on early extinguishment of debt, net | (7,924) | 0 | (12,038) | (468) |
Earnings from equity method investments | 6,805 | 7,617 | 26,003 | 16,566 |
Selling profit from sales-type leases | 0 | 0 | 0 | 180,416 |
Net income (loss) before income taxes | 6,529 | 3,710 | (20,628) | 370,670 |
Income tax expense | (78) | (84) | (165) | (323) |
Net income (loss) | 6,451 | 3,626 | (20,793) | 370,347 |
Net (income) attributable to noncontrolling interests | (2,646) | (2,845) | (8,435) | (8,168) |
Net income (loss) attributable to iStar Inc. | 3,805 | 781 | (29,228) | 362,179 |
Preferred dividends | (5,874) | (8,124) | (17,622) | (24,372) |
Net income (loss) allocable to common shareholders | $ (2,069) | $ (7,343) | $ (46,850) | $ 337,807 |
Net income (loss) allocable to common shareholders: | ||||
Basic (in dollars per share) | $ (0.03) | $ (0.12) | $ (0.61) | $ 5.23 |
Diluted (in dollars per share) | $ (0.03) | $ (0.12) | $ (0.61) | $ 4.26 |
Weighted average number of common shares: | ||||
Basic (in shares) | 75,033 | 62,168 | 76,232 | 64,624 |
Diluted (in shares) | 75,033 | 62,168 | 76,232 | 80,876 |
Operating lease income | ||||
Revenues: | ||||
Total revenues | $ 46,370 | $ 44,110 | $ 140,529 | $ 158,210 |
Interest income | ||||
Revenues: | ||||
Total revenues | 14,270 | 19,701 | 46,925 | 60,417 |
Interest income from sales-type leases | ||||
Revenues: | ||||
Total revenues | 8,360 | 8,339 | 25,010 | 12,157 |
Other income | ||||
Revenues: | ||||
Total revenues | 25,552 | 18,270 | 56,212 | 43,133 |
Land development revenue | ||||
Revenues: | ||||
Total revenues | 20,502 | 54,918 | 116,254 | 76,691 |
Costs and expenses: | ||||
Cost of sales expense | 21,358 | 48,101 | 114,704 | 71,785 |
Real estate expense | ||||
Costs and expenses: | ||||
Cost of sales expense | $ 16,935 | $ 23,187 | $ 53,708 | $ 71,165 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 6,451 | $ 3,626 | $ (20,793) | $ 370,347 | |
Other comprehensive income (loss): | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | [1] | 2,371 | 665 | 5,792 | 13,408 |
Unrealized gains on available-for-sale securities | 19 | 777 | 1,195 | 2,486 | |
Unrealized gains (losses) on cash flow hedges | 197 | (9,091) | (30,930) | (45,090) | |
Other comprehensive income (loss) | 2,587 | (7,649) | (23,943) | (29,196) | |
Comprehensive income (loss) | 9,038 | (4,023) | (44,736) | 341,151 | |
Comprehensive (income) attributable to noncontrolling interests | (3,299) | (1,581) | (2,894) | (2,224) | |
Comprehensive income (loss) attributable to iStar Inc. | $ 5,739 | $ (5,604) | $ (47,630) | $ 338,927 | |
[1] | Amounts reclassified to "Interest expense" in the Company's consolidated statements of operations for the three months ended September 30, 2020 and 2019 are $2,038 and $539, respectively, and amounts reclassified to "Interest expense" in the Company's consolidated statements of operations for the nine months ended September 30, 2020 and 2019 are $4,926 and $957, respectively. Amount reclassified to "Income from sales of real estate" in the Company's consolidated statements of operations is $806 for the nine months ended September 30, 2019. Amounts reclassified to "Earnings (losses) from equity method investments" in the Company's consolidated statements of operations for the three months ended September 30, 2020 and 2019 are $333 and $126, respectively, and amounts reclassified to "Earnings (losses) from equity method investments" in the Company's consolidated statements of operations for the nine months ended September 30, 2020 and 2019 are $866 and $(28), respectively. Amount reclassified to "Other expense" in the Company's consolidated statements of operations is $11,673 for the nine months ended September 30, 2019 resulting from hedged forecasted transactions becoming not probable to occur. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest expense | $ 42,407 | $ 46,522 | $ 127,748 | $ 136,851 |
Earnings from equity method investments | 6,805 | 7,617 | 26,003 | 16,566 |
Other expense | 73 | 407 | 351 | 12,798 |
Reclassification out of Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge | ||||
Interest expense | 2,038 | 539 | 4,926 | 957 |
Income from sales of real estate | 806 | |||
Earnings from equity method investments | $ 333 | $ 126 | $ 866 | (28) |
Other expense | $ 11,673 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Period of Adoption, Adjustment | Preferred Stock | Preferred Stock Series J | Common Stock at Par | Additional Paid-In Capital | Retained Earnings (Deficit) | Retained Earnings (Deficit)Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | $ 1,064,115 | $ 12 | [1] | $ 4 | [1] | $ 68 | $ 3,352,225 | $ (2,472,061) | $ (17,270) | $ 201,137 | ||
Beginning Balance at Dec. 31, 2018 | 1,064,115 | 12 | [1] | 4 | [1] | 68 | 3,352,225 | (2,472,061) | (17,270) | 201,137 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,064,115 | 12 | [1] | 4 | [1] | 68 | 3,352,225 | (2,472,061) | (17,270) | 196,507 | ||
Dividends declared—preferred | (24,372) | (24,372) | ||||||||||
Dividends declared—common | (18,991) | (18,991) | ||||||||||
Issuance of stock/restricted stock unit amortization, net | 6,393 | 4,361 | 2,032 | |||||||||
Net income (loss) | 370,347 | 362,179 | 8,168 | |||||||||
Change in accumulated other comprehensive income (loss) | (29,196) | (23,252) | (5,944) | |||||||||
Repurchase of stock | (58,787) | (6) | (58,781) | |||||||||
Contributions from noncontrolling interests | 2,039 | 2,039 | ||||||||||
Distributions to noncontrolling interests | (10,925) | (10,925) | ||||||||||
Ending Balance at Sep. 30, 2019 | 1,300,623 | 12 | [1] | 4 | [1] | 62 | 3,297,805 | (2,153,245) | (40,522) | 196,507 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,321,197 | 12 | [2] | 4 | [2] | 62 | 3,297,303 | (2,139,611) | (34,137) | 197,564 | ||
Beginning Balance at Jun. 30, 2019 | 1,321,197 | 12 | [2] | 4 | [2] | 62 | 3,297,303 | (2,139,611) | (34,137) | 197,564 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,300,623 | 12 | [1] | 4 | [1] | 62 | 3,297,805 | (2,153,245) | (40,522) | 196,507 | ||
Dividends declared—preferred | (8,124) | (8,124) | ||||||||||
Dividends declared—common | (6,291) | (6,291) | ||||||||||
Issuance of stock/restricted stock unit amortization, net | 1,621 | 944 | 677 | |||||||||
Net income (loss) | 3,626 | 781 | 2,845 | |||||||||
Change in accumulated other comprehensive income (loss) | (7,649) | (6,385) | (1,264) | |||||||||
Repurchase of stock | (442) | 0 | (442) | |||||||||
Distributions to noncontrolling interests | (3,315) | (3,315) | ||||||||||
Ending Balance at Sep. 30, 2019 | 1,300,623 | 12 | [1] | 4 | [1] | 62 | 3,297,805 | (2,153,245) | (40,522) | 196,507 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,300,623 | 12 | [1] | 4 | [1] | 62 | 3,297,805 | (2,153,245) | (40,522) | 196,507 | ||
Impact from adoption of new accounting standards | 1,237,960 | $ (12,382) | 12 | [1] | 0 | [1] | 78 | 3,284,877 | (2,205,838) | $ (12,382) | (38,707) | 197,538 |
Beginning Balance at Dec. 31, 2019 | 1,237,960 | (12,382) | 12 | [1] | 0 | [1] | 78 | 3,284,877 | (2,205,838) | (12,382) | (38,707) | 197,538 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,093,448 | $ (12,382) | 12 | [1] | 0 | [1] | 78 | 3,247,453 | (2,205,838) | $ (12,382) | (38,707) | 197,538 |
Dividends declared—preferred | (17,622) | (17,622) | ||||||||||
Dividends declared—common | (24,598) | (24,598) | ||||||||||
Issuance of stock/restricted stock unit amortization, net | 6,455 | 1 | 3,985 | 2,469 | ||||||||
Net income (loss) | (20,793) | (29,228) | 8,435 | |||||||||
Change in accumulated other comprehensive income (loss) | (23,943) | (18,404) | (5,539) | |||||||||
Repurchase of stock | (41,414) | (5) | (41,409) | |||||||||
Contributions from noncontrolling interests | 760 | 760 | ||||||||||
Distributions to noncontrolling interests | (10,975) | (10,975) | ||||||||||
Ending Balance at Sep. 30, 2020 | 1,093,448 | 12 | [1] | 0 | [1] | 74 | 3,247,453 | (2,289,668) | (57,111) | 192,688 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,113,785 | 12 | [2] | 0 | [2] | 76 | 3,260,173 | (2,279,284) | (59,045) | 191,853 | ||
Beginning Balance at Jun. 30, 2020 | 1,113,785 | 12 | [2] | 0 | [2] | 76 | 3,260,173 | (2,279,284) | (59,045) | 191,853 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | 1,093,448 | 12 | [1] | 0 | [1] | 74 | 3,247,453 | (2,289,668) | (57,111) | 192,688 | ||
Dividends declared—preferred | (5,874) | (5,874) | ||||||||||
Dividends declared—common | (8,315) | (8,315) | ||||||||||
Issuance of stock/restricted stock unit amortization, net | 1,797 | 0 | 903 | 894 | ||||||||
Net income (loss) | 6,451 | 3,805 | 2,646 | |||||||||
Change in accumulated other comprehensive income (loss) | 2,587 | 1,934 | 653 | |||||||||
Repurchase of stock | (13,625) | (2) | (13,623) | |||||||||
Contributions from noncontrolling interests | 444 | 444 | ||||||||||
Distributions to noncontrolling interests | (3,802) | (3,802) | ||||||||||
Ending Balance at Sep. 30, 2020 | 1,093,448 | 12 | [1] | 0 | [1] | 74 | 3,247,453 | (2,289,668) | (57,111) | 192,688 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Impact from adoption of new accounting standards | $ 1,093,448 | $ 12 | [1] | $ 0 | [1] | $ 74 | $ 3,247,453 | $ (2,289,668) | $ (57,111) | $ 192,688 | ||
[1] | Refer to Note 14 for details on the Company's Preferred Stock. | |||||||||||
[2] | Refer to Note 14 for details on the Company's Preferred Stock. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared - common (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.29 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (20,793) | $ 370,347 |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||
Provision for loan losses | 4,093 | (3,792) |
Provision for losses on net investment in leases | 2,001 | 0 |
Impairment of assets | 6,491 | 4,953 |
Depreciation and amortization | 43,407 | 43,586 |
Non-cash interest income from sales-type leases | (15,681) | (2,228) |
Stock-based compensation expense | 26,675 | 20,694 |
Amortization of discounts/premiums and deferred financing costs on debt obligations, net | 10,055 | 10,573 |
Amortization of discounts/premiums and deferred interest on loans, net | (24,360) | (33,136) |
Deferred interest on loans received | 15,275 | 9,507 |
Selling profit from sales-type leases | 0 | (180,416) |
Earnings from equity method investments | (26,003) | (16,566) |
Distributions from operations of other investments | 17,146 | 15,712 |
Deferred operating lease income | (11,276) | (12,210) |
Income from sales of real estate | (6,118) | (233,406) |
Land development revenue in excess of cost of sales | (1,550) | (4,906) |
Loss on early extinguishment of debt, net | 12,038 | 468 |
Other operating activities, net | (21,207) | 12,827 |
Changes in assets and liabilities: | ||
Deposit on loan to be held for sale | 0 | (21,226) |
Changes in accrued interest and operating lease income receivable | 352 | 2,010 |
Changes in deferred expenses and other assets, net | (6,079) | (8,268) |
Changes in accounts payable, accrued expenses and other liabilities | (10,644) | (50,319) |
Cash flows used in operating activities | (6,178) | (75,796) |
Cash flows from investing activities: | ||
Originations and fundings of loans receivable, net | (80,635) | (191,559) |
Capital expenditures on real estate assets | (11,661) | (21,081) |
Capital expenditures on land and development assets | (33,488) | (93,395) |
Acquisitions of real estate, net investments in leases and land assets | 0 | (240,487) |
Repayments of and principal collections on loans receivable and other lending investments, net | 151,612 | 380,071 |
Net proceeds from sales of loans receivable | 0 | 5,898 |
Net proceeds from sales of real estate | 42,684 | 307,493 |
Net proceeds from sales of land and development assets | 113,670 | 73,733 |
Distributions from other investments | 12,139 | 60,411 |
Contributions to and acquisition of interest in other investments | (194,775) | (494,339) |
Other investing activities, net | (5,214) | (28,002) |
Cash flows used in investing activities | (5,668) | (241,257) |
Cash flows from financing activities: | ||
Borrowings from debt obligations | 737,913 | 834,980 |
Repayments and repurchases of debt obligations | (824,740) | (389,571) |
Preferred dividends paid | (17,622) | (24,372) |
Common dividends paid | (24,397) | (18,764) |
Repurchase of stock | (47,272) | (58,787) |
Payments for debt prepayment or extinguishment costs | (8,567) | 0 |
Payments for deferred financing costs | (7,475) | (11,416) |
Payments for withholding taxes upon vesting of stock-based compensation | (2,001) | (1,842) |
Contributions from noncontrolling interests | 760 | 2,039 |
Distributions to noncontrolling interests | (10,975) | (10,925) |
Cash flows (used in) provided by financing activities | (204,376) | 321,342 |
Effect of exchange rate changes on cash | (10) | (15) |
Changes in cash, cash equivalents and restricted cash | (216,232) | 4,274 |
Cash, cash equivalents and restricted cash at beginning of period | 352,206 | 974,544 |
Cash, cash equivalents and restricted cash at end of period | 135,974 | 978,818 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Fundings and repayments of loan receivables and loan participations, net | 6,160 | 10,547 |
Contributions of land and development assets to equity method investments, net | 0 | 4,073 |
Accrued repurchase of stock | 499 | 0 |
Acquisition of land and development asset through joint venture consolidation | 0 | 27,000 |
Assumption of mortgage by third party | 0 | 228,000 |
Accounts payable for finance costs | 0 | 1,878 |
Sales-type lease origination | $ 0 | $ 411,523 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Business —iStar Inc. (the "Company") finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. The Company also manages entities focused on ground lease and net lease investments (refer to Note 8). The Company has invested over $40 billion of capital over the past two decades and is structured as a real estate investment trust ("REIT") with a diversified portfolio focused on larger assets located in major metropolitan markets. The Company's primary reportable business segments are net lease, real estate finance, operating properties and land and development (refer to Note 18). Organization —The Company began its business in 1993 through the management of private investment funds and became publicly traded in 1998. Since that time, the Company has grown through the origination of new investments and corporate acquisitions. |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Basis of Presentation —The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10-01 of Regulation S-X for interim financial statements. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. These unaudited consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the "Annual Report"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim periods or the entire year. Certain prior year amounts have been reclassified in the Company's consolidated financial statements and the related notes to conform to the current period presentation. Principles of Consolidation —The consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, controlled partnerships and VIEs for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The Company's involvement with VIEs affects its financial performance and cash flows primarily through amounts recorded in "Operating lease income," "Interest income," "Earnings from equity method investments," "Real estate expense" and "Interest expense" in the Company's consolidated statements of operations. The Company has provided no financial support to those VIEs that it was not previously contractually required to provide. Consolidated VIEs —The Company consolidates VIEs for which it is considered the primary beneficiary. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from each VIE's respective assets. The Company did not have any unfunded commitments related to consolidated VIEs as of September 30, 2020. The following table presents the assets and liabilities of the Company's consolidated VIEs as of September 30, 2020 and December 31, 2019 ($ in thousands): As of September 30, December 31, ASSETS Real estate Real estate, at cost $ 898,733 $ 891,000 Less: accumulated depreciation (55,785) (37,542) Real estate, net 842,948 853,458 Land and development, net 249,585 273,617 Other investments 39 45 Cash and cash equivalents 29,933 19,112 Accrued interest and operating lease income receivable, net 1,154 1,208 Deferred operating lease income receivable, net 26,998 19,547 Deferred expenses and other assets, net 126,573 134,117 Total assets $ 1,277,230 $ 1,301,104 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 118,786 $ 107,455 Debt obligations, net 490,987 482,918 Total liabilities 609,773 590,373 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following paragraph describes the impact on the Company's consolidated financial statements from the adoption of Accounting Standards Updates ("ASUs") on January 1, 2020. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), as amended, on January 1, 2020 using the modified retrospective approach method. Under the modified retrospective approach, the Company recorded a cumulative effect adjustment to retained earnings by increasing its allowance for loan losses and recording an initial allowance for losses on net investment in leases. Periods presented that are prior to the adoption date of January 1, 2020 will not be adjusted. ASU 2016-13 replaced the incurred loss impairment methodology with a methodology that reflects a current expected credit loss ("Expected Loss"). ASU 2016-13 impacted all of the Company’s investments held at amortized cost, which included its loans (including unfunded loan commitments), financing receivables, net investment in leases and held-to-maturity debt securities. Upon adoption of ASU 2016-13 on January 1, 2020, the Company recorded an increase to its allowance for loan losses of $3.3 million and an initial allowance for losses on net investment in leases of $9.1 million, both of which were recorded as a cumulative effect adjustment to retained earnings. Subsequent increases or decreases in the allowance for loan losses or the allowance for losses on net investment in leases will be charged to "Provision for (recovery of) loan losses" and "Provision for (recovery of) losses on net investment in leases," respectively, in the Company's consolidated statements of operations. Refer to "Significant Accounting Policies" below for more information on how the Company determines its allowance for loan losses and its allowance for losses on net investment in leases. Significant Accounting Policies Allowance for Loan Losses and Net Investment in Leases— The Company performs quarterly a comprehensive analysis of its loan and sales-type lease portfolios and assigns risk ratings that incorporate management's current judgments about credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower or tenant financial resources and investment collateral, collateral type, project economics and geographical location as well as national and regional economic factors. This methodology results in loans and sales-type leases being risk rated, with ratings ranging from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The Company estimates loss rates based on historical realized losses experienced within its portfolio taking into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience. Upon adoption of ASU 2016-13 on January 1, 2020, the Company estimates its Expected Loss on its loans (including unfunded loan commitments), held-to-maturity debt securities and net investment in leases based on relevant information including historical realized loss rates, current market conditions and reasonable and supportable forecasts that affect the collectability of its investments. The estimate of the Company's Expected Loss requires significant judgment and the Company analyzes its loan portfolio based upon its different categories of financial assets, which includes (i) loans and held-to-maturity debt securities; (ii) construction loans; and (iii) net investment in leases and financings that resulted from the acquisition of properties that did not qualify as a sale leaseback transaction and, as such, are accounted for as financing receivables (refer to Note 5). For the Company's loans and held-to-maturity debt securities, the Company utilized a loan loss model developed by Trepp LLC ("Trepp") to estimate its Expected Loss. The model is a loss forecasting tool that utilizes loan level data including each loans position in the capital structure, interest rates, maturity dates, unfunded commitments, debt service coverage ratios, etc. and also utilizes forward looking macroeconomic variables and pool-level mean loss rates to produce an Expected Loss over the life each loan. The Company utilized the model to estimate its Expected Loss for this category of loans after inputting its individual loan level data for this category of loans into the model. For the Company's construction loans, the Company analyzed its historical realized loss experience on its construction loan portfolio to estimate its Expected Loss. The Company also utilized third-party market data that included historical loss rates on commercial real estate loans and forecasted economic trends, including interest and unemployment rates. The Company utilized the third-party market data to support the Expected Loss the Company calculated using its own historical realized loss experience. For the Company's net investment in leases and financings that resulted from the acquisition of properties that did not qualify as sale leaseback transactions, the Company analyzed historical loss rates for lessors from tenants with a credit rating similar to the Company's tenant at these properties. The Company also utilized third-party market information as well as market data from Trepp which forecasted economic trends, including interest and unemployment rates, to assist in developing a probability of default and loss given default to calculate the Company's Expected Loss. The Company utilized the third-party market information to support the Expected Loss the Company calculated by analyzing the historical loss rates for lessors from tenants with a credit rating similar to the Company's tenant. The Company considers a loan or sales-type lease to be non-performing and places it on non-accrual status at such time as: (1) interest payments become 90 days delinquent; (2) it has a maturity default; or (3) management determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan or sales-type lease. Non-accrual loans or sales-type leases are returned to accrual status when they have become contractually current and management believes all amounts contractually owed will be received. The Company will record a specific allowance on a non-performing loan or sales-type lease if the Company determines that the collateral fair value less costs to sell is less than the carrying value of the collateral-dependent asset. The specific allowance is increased (decreased) through "Provision for (recovery of) loan losses" or "Provision for losses on net investment in leases" in the Company's consolidated statements of operations and is decreased by charge-offs. During delinquency and the foreclosure process, there are typically numerous points of negotiation with the borrower or tenant as the Company works toward a settlement or other alternative resolution, which can impact the potential for repayment or receipt of collateral. The Company's policy is to charge off a loan when it determines, based on a variety of factors, that all commercially reasonable means of recovering the loan balance have been exhausted. This may occur at different times, including when the Company receives cash or other assets in a pre-foreclosure sale or takes control of the underlying collateral in full satisfaction of the loan upon foreclosure or deed-in-lieu, or when the Company has otherwise ceased significant collection efforts. The Company considers circumstances such as the foregoing to be indicators that the final steps in the loan collection process have occurred and that a loan is uncollectible. At this point, a loss is confirmed and the loan and related allowance will be charged off. The Company made the accounting policy election to record accrued interest on its loan portfolio separate from its loans receivable and other lending investments and to exclude accrued interest from its amortized cost basis disclosures (refer to Note 7). As of September 30, 2020 and December 31, 2019, accrued interest was $3.6 million and $4.2 million, respectively, and is recorded in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. The Company places loans on non-accrual status once the loan becomes 90 days delinquent and reverses any accrued interest as a reduction to interest income or recognizes a credit loss expense at such time. As such, the Company elected the practical expedient to not record an allowance against accrued interest receivable. During the nine months ended September 30, 2020, the Company did not reverse any accrued interest on its loan portfolio. For the remainder of the Company's significant accounting policies, refer to the Company's Annual Report. New Accounting Pronouncements — In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) ("ASU 2020-06"). ASU 2020-06 was issued to reduce the complexity associated with applying current accounting guidance for certain financial instruments with characteristics of both liabilities and equity. ASU 2020-06 removes certain separation models under ASC 470-20 so that a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. In addition, ASU 2020-06 requires that the if-converted method be used for all convertibles and that the treasury stock method no longer be used. ASU 2020-06 is effective for interim and annual reporting periods beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact of ASU 2020-06 on the Company’s consolidated financial statements. |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate | Real Estate The Company's real estate assets were comprised of the following ($ in thousands): Net Lease (1) Operating Properties Total As of September 30, 2020 Land, at cost $ 188,418 $ 106,187 $ 294,605 Buildings and improvements, at cost 1,340,832 109,176 1,450,008 Less: accumulated depreciation (240,319) (17,199) (257,518) Real estate, net (1) 1,288,931 198,164 1,487,095 Real estate available and held for sale (2) — 5,519 5,519 Total real estate $ 1,288,931 $ 203,683 $ 1,492,614 As of December 31, 2019 Land, at cost $ 199,710 $ 106,187 $ 305,897 Buildings and improvements, at cost 1,347,321 107,861 1,455,182 Less: accumulated depreciation (219,949) (13,911) (233,860) Real estate, net (1) 1,327,082 200,137 1,527,219 Real estate available and held for sale (2) — 8,650 8,650 Total real estate $ 1,327,082 $ 208,787 $ 1,535,869 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, real estate, net included $760.4 million and $768.6 million, respectively, of real estate of the Net Lease Venture (refer to Net Lease Venture below). During the nine months ended September 30, 2020, the Company's largest net lease tenant contributed 11.9% of total revenues. (2) As of September 30, 2020 and December 31, 2019, the Company had $5.5 million and $8.6 million, respectively, of residential condominiums available for sale in its operating properties portfolio. Net Lease Venture —In February 2014, the Company partnered with a sovereign wealth fund to form a venture to acquire and develop net lease assets (the "Net Lease Venture") and gave a right of first offer to the venture on all new net lease investments. The Company and its partner had joint decision making rights pertaining to the acquisition of new investments. Upon the expiration of the investment period on June 30, 2018, the Company obtained control of the venture through its unilateral rights of management and disposition of the assets. As a result, the expiration of the investment period resulted in a reconsideration event under GAAP and the Company determined that the Net Lease Venture is a VIE for which the Company is the primary beneficiary. Effective June 30, 2018, the Company consolidated the Net Lease Venture as an asset acquisition under ASC 810. The Net Lease Venture had previously been accounted for as an equity method investment. The Company has an equity interest in the Net Lease Venture of approximately 51.9%. The Company is responsible for sourcing new opportunities and managing the venture and its assets in exchange for a management fee and incentive fee. Several of the Company's senior executives whose time is substantially devoted to the Net Lease Venture own a total of 0.6% equity ownership in the venture via co-investment. These senior executives are also entitled to an amount equal to 50% of any incentive fee received based on the 47.5% external partner's interest. The Company earned $0.4 million and $0.4 million, respectively, of management fees after the effect of eliminations during the three months ended September 30, 2020 and 2019 and earned $1.1 million and $1.1 million, respectively, of management fees after the effect of eliminations during the nine months ended September 30, 2020 and 2019, with respect to services provided to other investors in the Net Lease Venture, which was recorded as a reduction to "Net income attributable to noncontrolling interests" in the Company's consolidated statements of operations. Acquisitions— During the nine months ended September 30, 2019, the Company acquired a net lease asset for $11.5 million. In addition, the Company acquired the leasehold interest in a net lease asset for $98.2 million, inclusive of closing costs, and simultaneously entered into a new 98-year Ground Lease with SAFE (refer to Note 8) and also acquired the leasehold interest in a net lease asset for $110.6 million and simultaneously entered into a new 99-year Ground Lease with SAFE (refer to Note 8). Dispositions— During the nine months ended September 30, 2020, the Company sold a net lease asset for net proceeds of $7.5 million and recognized an impairment of $1.7 million in connection with the sale. During the nine months ended September 30, 2019, the Company sold a portfolio of net lease assets with an aggregate carrying value of $220.4 million and recognized gains of $219.7 million in "Income from sales of real estate" in the Company's consolidated statements of operations. In connection with the sale of this portfolio of assets the buyer assumed a $228.0 million non-recourse mortgage. In addition, during the nine months ended September 30, 2019, the Company sold commercial and residential operating properties with an aggregate carrying value of $69.9 million and recognized gains of $10.2 million in "Income from sales of real estate" in the Company's consolidated statements of operations. Real Estate Available and Held for Sale— During the nine months ended September 30, 2020, the Company transferred a net lease asset with an aggregate carrying value of $25.7 million to held for sale due to an executed contract with SAFE. The net lease asset was sold to SAFE in September 2020 (refer to Note 8). Impairments— During the nine months ended September 30, 2020, the Company recorded an impairment of $1.7 million in connection with the sale of a net lease asset and an impairment of $3.0 million on a real estate asset held for sale. During the nine months ended September 30, 2019, the Company recorded an impairment of $3.3 million on a commercial operating property based on an executed purchase and sale agreement and recorded $0.6 million of impairments in connection with the sale of residential condominium units. Tenant Reimbursements— The Company receives reimbursements from tenants for certain facility operating expenses including common area costs, insurance, utilities and real estate taxes. Tenant expense reimbursements were $5.8 million and $17.1 million for the three and nine months ended September 30, 2020, respectively, and $4.9 million and $14.8 million for the three and nine months ended September 30, 2019, respectively. These amounts are included in "Operating lease income" in the Company's consolidated statements of operations. Allowance for Doubtful Accounts— As of September 30, 2020 and December 31, 2019, the allowance for doubtful accounts related to real estate tenant receivables was $2.1 million and $1.0 million, respectively, and the allowance for doubtful accounts related to deferred operating lease income was $1.0 million as of December 31, 2019. These amounts are included in "Accrued interest and operating lease income receivable, net" and "Deferred operating lease income receivable, net," respectively, on the Company's consolidated balance sheets. |
Net Investment in Leases
Net Investment in Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Net Investment in Leases | Net Investment in Leases In May 2019, the Company entered into a transaction with an operator of bowling entertainment venues, consisting of the purchase of nine bowling centers for $56.7 million, of which seven were acquired from the lessee for $44.1 million, and a commitment to invest up to $55.0 million in additional bowling centers over the next several years. The new centers were added to the Company's existing master leases with the tenant. In connection with this transaction, the maturities of the master leases were extended by 15 years to 2047. In the second quarter 2020, the Company entered into a transaction with the lessee whereby it would apply $10 million of the net proceeds it received from certain sales of the lessee's facilities to the lessee's upcoming rent obligations to the Company. In exchange, the Company's obligation under the lease to acquire an equal amount of new facilities for them or to reduce their rent in the future has been terminated. In the third quarter 2020, the Company granted the lessee a nine-month rent deferral on its two wholly-owned master leases in exchange for eliminating the Company's commitment to invest up to $55.0 million in additional bowling centers over the next several years. All deferred amounts are required to be repaid with interest beginning in January 2023. As a result of the May 2019 modifications to the leases, the Company classified the leases as sales-type leases and recorded $424.1 million in "Net investment in leases" on its consolidated balance sheet. As a result of the modifications in the second and third quarter 2020, the Company reassessed this classification as required by ASC 842, and concluded that the leases should continue to be classified as sales-type leases. In May 2019, the Company determined that the seven bowling centers acquired did not qualify as a sale leaseback transaction and recorded $44.1 million in "Loans receivable and other lending investments, net" on its consolidated balance sheet (refer to Note 7). The Company recognized $180.4 million in "Selling profit from sales-type leases" in its consolidated statements of operations for the nine months ended September 30, 2019 as a result of the transaction. For the three and nine months ended September 30, 2020, the Company recognized $1.5 million and $10.7 million, respectively, of cash interest income and $6.9 million and $14.3 million, respectively, of non-cash interest income in "Interest income from sales-type leases" in the Company's consolidated statements of operations. For the three and nine months ended September 30, 2019, the Company recognized $6.9 million and $10.1 million, respectively, of cash interest income and $1.4 million and $2.1 million, respectively, of non-cash interest income in "Interest income from sales-type leases" in the Company's consolidated statements of operations. The Company's net investment in leases were comprised of the following as of September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 December 31, 2019 Total undiscounted cash flows $ 1,020,921 $ 1,042,019 Unguaranteed estimated residual value 345,815 340,620 Present value discount (935,206) (963,724) Allowance for losses on net investment in leases (11,113) — Net investment in leases (1) $ 420,417 $ 418,915 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, all of the Company's net investment in leases were current in their payment status and performing in accordance with the terms of the respective leases. As of September 30, 2020, the risk rating on the Company's net investment in leases was 2.0 (refer to Note 3). Future Minimum Lease Payments under Sales-type Leases —Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, in effect as of September 30, 2020, are as follows by year ($ in thousands): Amount 2020 (remaining three months) $ — 2021 14,248 2022 30,481 2023 41,855 2024 41,584 Thereafter 892,753 Total undiscounted cash flows $ 1,020,921 Allowance for Losses on Net Investment in Leases —Changes in the Company's allowance for losses on net investment in leases for the three and nine months ended September 30, 2020 were as follows ($ in thousands): Three Months Nine Months Reserve for losses on net investment in leases at beginning of period $ 10,937 $ — Initial allowance recorded upon adoption of new accounting standard (1) — 9,111 Provision for losses on net investment in leases (2) 176 2,002 Allowance for losses on net investment in leases at end of period $ 11,113 $ 11,113 _________________________________________________________ (1) The Company recorded an initial allowance for losses on net investment in leases of $9.1 million upon the adoption of ASU 2016-13 on January 1, 2020 (refer to Note 3). (2) During the three and nine months ended September 30, 2020, the Company recorded an allowance for losses on net investment in leases of $0.2 million and $2.0 million, respectively, primarily resulting from the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13 (refer to Note 3). |
Land and Development
Land and Development | 9 Months Ended |
Sep. 30, 2020 | |
Land And Development [Abstract] | |
Land and Development | Land and Development The Company's land and development assets were comprised of the following ($ in thousands): As of September 30, December 31, 2020 2019 Land and land development, at cost $ 499,231 $ 590,153 Less: accumulated depreciation (10,315) (9,608) Total land and development, net $ 488,916 $ 580,545 Acquisitions— During the nine months ended September 30, 2019, the Company acquired a land and development asset from an unconsolidated entity in which the Company owned a noncontrolling 50% equity interest for $34.3 million, which consisted of a $7.3 million cash payment and the assumption of a $27.0 million loan. Dispositions— During the nine months ended September 30, 2020 and 2019, the Company sold land parcels and residential lots and units and recognized land development revenue of $116.3 million and $76.7 million, respectively. During the nine months ended September 30, 2020 and 2019, the Company recognized land development cost of sales of $114.7 million and $71.8 million, respectively, from its land and development portfolio. Impairments— During the nine months ended September 30, 2020, the Company recorded an impairment of $1.5 million on a land and development asset. During the nine months ended September 30, 2019, the Company recorded an impairment of $1.1 million on a land and development asset due to a change in business strategy. |
Loans Receivable and Other Lend
Loans Receivable and Other Lending Investments, net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans Receivable and Other Lending Investments, net | Loans Receivable and Other Lending Investments, net The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands): As of September 30, December 31, Construction loans Senior mortgages $ 467,774 $ 518,992 Corporate/Partnership loans 85,032 95,394 Subtotal - gross carrying value of construction loans (1) 552,806 614,386 Loans Senior mortgages 52,855 53,592 Corporate/Partnership loans 21,845 24,424 Subordinate mortgages 11,445 10,877 Subtotal - gross carrying value of loans 86,145 88,893 Other lending investments Financing receivables (refer to Note 5) 45,704 44,339 Held-to-maturity debt securities 89,234 84,981 Available-for-sale debt securities 24,631 23,896 Subtotal - other lending investments 159,569 153,216 Total gross carrying value of loans receivable and other lending investments 798,520 856,495 Allowance for loan losses (33,447) (28,634) Total loans receivable and other lending investments, net $ 765,073 $ 827,861 ____________________________________________________________ (1) As of September 30, 2020, 47%, or $262.1 million, gross carrying value of construction loans had completed construction and 4%, or $22.5 million, gross carrying value of construction loans had substantially completed construction. Allowance for Loan Losses —Changes in the Company's allowance for loan losses were as follows for the three months ended September 30, 2020 ($ in thousands): General Allowance Construction Loans Held to Financing Receivables Specific Total Allowance for loan losses at beginning of period $ 11,736 $ 905 $ 111 $ 1,159 $ 21,701 $ 35,612 (Recovery of) provision for loan losses (1) (2,598) (427) (56) 17 899 (2,165) Allowance for loan losses at end of period $ 9,138 $ 478 $ 55 $ 1,176 $ 22,600 $ 33,447 ____________________________________________________________ (1) During the three months ended September 30, 2020, the Company recorded a recovery of loan losses of $2.0 million in its consolidated statement of operations resulting from the reversal of CECL allowances on loans that repaid in full in the third quarter 2020 and a more favorable economic outlook on commercial real estate markets in the third quarter 2020 as compared to the second quarter 2020. Of this amount, $0.7 million related to a recovery of credit losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." Changes in the Company's allowance for loan losses were as follows for the nine months ended September 30, 2020 ($ in thousands): General Allowance Construction Loans Held to Financing Receivables Specific Total Allowance for loan losses at beginning of period $ 6,668 $ 265 $ — $ — $ 21,701 $ 28,634 Adoption of new accounting standard (1) (353) 98 20 964 — 729 Provision for loan losses (2) 2,823 115 35 212 899 4,084 Allowance for loan losses at end of period $ 9,138 $ 478 $ 55 $ 1,176 $ 22,600 $ 33,447 ____________________________________________________________ (1) On January 1, 2020, the Company recorded an increase to its allowance for loan losses of $3.3 million upon the adoption of ASU 2016-13 (refer to Note 3), of which $2.5 million related to expected credit losses for unfunded loan commitments and was recorded in "Accounts payable, accrued expenses and other liabilities." (2) During the nine months ended September 30, 2020, the Company recorded a provision for loan losses of $4.1 million in its consolidated statement of operations resulting from the macroeconomic impact of COVID-19 on commercial real estate markets, of which $0.9 million related to a recovery of credit losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." The Company's investment in loans and other lending investments and the associated allowance for loan losses were as follows as of September 30, 2020 and December 31, 2019 ($ in thousands): Individually Evaluated for Impairment (1) Collectively Total As of September 30, 2020 Construction loans (2) $ 50,257 $ 502,549 $ 552,806 Loans (2) 37,020 49,125 86,145 Financing receivables — 45,704 45,704 Held-to-maturity debt securities — 89,234 89,234 Available-for-sale debt securities (3) — 24,631 24,631 Less: Allowance for loan losses (22,600) (10,847) (33,447) Total $ 64,677 $ 700,396 $ 765,073 As of December 31, 2019 Construction loans (2) $ — $ 614,386 $ 614,386 Loans (2) 37,820 51,073 88,893 Financing receivables — 44,339 44,339 Held-to-maturity debt securities — 84,981 84,981 Available-for-sale debt securities (3) — 23,896 23,896 Less: Allowance for loan losses (21,701) (6,933) (28,634) Total $ 16,119 $ 811,742 $ 827,861 _______________________________________________________________________________ (1) The carrying value of these loans includes an unamortized discount of $0.6 million and $0.1 million as of September 30, 2020 and December 31, 2019, respectively. The Company's loans individually evaluated for impairment represents two loans on non-accrual status and the unamortized amounts associated with these loans are not currently being amortized into income. (2) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.3 million and $0.7 million as of September 30, 2020 and December 31, 2019, respectively. (3) Available-for-sale debt securities are evaluated for impairment under ASC 326-30. Credit Characteristics —As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments, which are inherently uncertain, and there can be no assurance that actual performance will be similar to current expectation. The Company designates loans as non-performing at such time as: (1) interest payments become 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. The Company's amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, as of September 30, 2020 were as follows ($ in thousands): Year of Origination 2020 2019 2018 2017 2016 Prior to 2016 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — 123,519 — — — 123,519 3.0 — 13,296 106,465 144,011 41,931 4,130 309,833 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ 13,296 $ 229,984 $ 144,011 $ 41,931 $ 4,130 $ 433,352 Corporate/partnership loans Risk rating 1.0 $ — $ — $ 16,404 $ — $ — $ — $ 16,404 1.5 — — — — — — — 2.0 — — — — — — 2.5 — — — — — — — 3.0 — 1,504 25,194 — — — 26,698 3.5 — — — — — — — 4.0 — — 21,844 — 41,931 — 63,775 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ 1,504 $ 63,442 $ — $ 41,931 $ — $ 106,877 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 11,445 11,445 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 11,445 $ 11,445 Financing receivables Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — 45,704 — — — — 45,704 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ 45,704 $ — $ — $ — $ — $ 45,704 Total $ — $ 60,504 $ 293,426 $ 144,011 $ 83,862 $ 15,575 $ 597,378 ____________________________________________________________ (1) As of September 30, 2020, excludes $87.3 million for two loans on non-accrual status. The Company's amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Current Less Than Greater Than 90 Days (1) Total Total As of September 30, 2020 Senior mortgages $ 483,609 $ — $ 37,020 $ 37,020 $ 520,629 Corporate/Partnership loans 106,877 — — — 106,877 Subordinate mortgages 11,445 — — — 11,445 Total $ 601,931 $ — $ 37,020 $ 37,020 $ 638,951 As of December 31, 2019 Senior mortgages $ 534,765 $ — $ 37,820 $ 37,820 $ 572,585 Corporate/Partnership loans 119,818 — — — 119,818 Subordinate mortgages 10,877 — — — 10,877 Total $ 665,460 $ — $ 37,820 $ 37,820 $ 703,280 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, the Company had one loan which was greater than 90 days delinquent and was in various stages of resolution, including legal and environmental matters, and was 11.3 years and 10.5 years outstanding, respectively. Impaired Loans —The Company's impaired loans were as follows ($ in thousands): As of September 30, 2020 As of December 31, 2019 Amortized Unpaid Related Amortized Unpaid Related With an allowance recorded: Senior mortgages (1) $ 87,277 $ 86,627 $ (22,600) $ 37,820 $ 37,923 $ (21,701) Total $ 87,277 $ 86,627 $ (22,600) $ 37,820 $ 37,923 $ (21,701) ____________________________________________________________ (1) The Company has two non-accrual loans as of September 30, 2020 and one non-accrual loan as of December 31, 2019 that are considered impaired and included in the table above. The Company did not record any interest income on impaired loans for the three and nine months ended September 30, 2020 and 2019. Other lending investments —Other lending investments includes the following securities ($ in thousands): Face Value Amortized Cost Basis Net Unrealized Gain Estimated Fair Value Net Carrying Value As of September 30, 2020 Available-for-Sale Securities Municipal debt securities $ 20,680 $ 20,680 $ 3,951 $ 24,631 $ 24,631 Held-to-Maturity Securities Debt securities 100,000 89,234 — 89,234 89,234 Total $ 120,680 $ 109,914 $ 3,951 $ 113,865 $ 113,865 As of December 31, 2019 Available-for-Sale Securities Municipal debt securities $ 21,140 $ 21,140 $ 2,756 $ 23,896 $ 23,896 Held-to-Maturity Securities Debt securities 100,000 84,981 — 84,981 84,981 Total $ 121,140 $ 106,121 $ 2,756 $ 108,877 $ 108,877 As of September 30, 2020, the contractual maturities of the Company's securities were as follows ($ in thousands): Held-to-Maturity Debt Securities Available-for-Sale Debt Securities Amortized Cost Basis Estimated Fair Value Amortized Cost Basis Estimated Fair Value Maturities Within one year $ — $ — $ — $ — After one year through 5 years 89,234 89,234 — — After 5 years through 10 years — — — — After 10 years — — 20,680 24,631 Total $ 89,234 $ 89,234 $ 20,680 $ 24,631 |
Other Investments
Other Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Other Investments The Company's other investments and its proportionate share of earnings (losses) from equity method investments were as follows ($ in thousands): Earnings (Losses) from Equity Method Investments (1) Carrying Value For the Three Months Ended September 30, For the Nine Months September 30, 2020 December 31, 2019 2020 2019 2020 2019 Real estate equity investments Safehold Inc. ("SAFE") (2) $ 855,925 $ 729,357 $ 9,331 $ 2,946 $ 36,905 $ 14,076 iStar Net Lease II LLC ("Net Lease Venture II") 103,276 30,712 811 (98) 1,568 (416) Other real estate equity investments 91,672 104,553 (3,542) 4,574 (10,517) 2,744 Subtotal 1,050,873 864,622 6,600 7,422 27,956 16,404 Other strategic investments (3) 72,220 43,253 205 195 (1,953) 162 Total $ 1,123,093 $ 907,875 $ 6,805 $ 7,617 $ 26,003 $ 16,566 ____________________________________________________________ (1) For the three months ended September 30, 2020 and 2019, earnings (losses) from equity method investments is net of the Company's pro rata share of $4.6 million and $3.5 million, respectively, of depreciation expense and $14.6 million and $8.2 million, respectively, of interest expense. For the nine months ended September 30, 2020 and 2019, earnings (losses) from equity method investments is net of the Company's pro rata share of $13.4 million and $10.7 million, respectively, of depreciation expense and $44.0 million and $21.6 million, respectively, of interest expense. (2) As of September 30, 2020, the Company owned 33.7 million shares of SAFE common stock which, based on the closing price of $62.10 on September 30, 2020, had a market value of $2.1 billion. For the nine months ended September 30, 2020, equity in earnings includes a dilution gain of $7.9 million resulting from a SAFE equity offering in March 2020. (3) During the three and nine months ended September 30, 2020, the Company identified observable price changes in an equity security held by the Company as evidenced by orderly private issuances of similar securities by the same issuer. In accordance with ASC 321, the Company remeasured its equity investment at fair value and recognized aggregate mark-to-market gains of $14.0 million and $23.9 million, respectively, in "Other income" in the Company's consolidated statements of operations. During the three and nine months ended September 30, 2019, equity in earnings (losses) includes $8.2 million of income resulting from the sale of a property at one of the Company's equity method investments. Safehold Inc. —Safehold Inc. ("SAFE") is a publicly-traded company formed by the Company primarily to acquire, own, manage, finance and capitalize ground leases. Ground leases generally represent ownership of the land underlying commercial real estate projects that is net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon ("Ground Leases"). As of September 30, 2020, the Company owned approximately 65.8% of SAFE's common stock outstanding. In January 2019, the Company purchased 12.5 million newly designated limited partnership units (the "Investor Units") in SAFE's operating partnership ("SAFE OP"), at a purchase price of $20.00 per unit, for a total purchase price of $250.0 million. The purpose of the investment was to allow SAFE to fund additional Ground Lease acquisitions and originations. Each Investor Unit received distributions equivalent to distributions declared and paid on one share of SAFE's common stock. The Investor Units had no voting rights. They had limited protective consent rights over certain matters such as amendments to the terms of the Investor Units that would adversely affect the Investor Units. In May 2019, after the approval of SAFE's stockholders, the Investor Units were exchanged for shares of SAFE's common stock on a one-for-one basis. Following the exchange, the Investor Units were retired. In connection with the Company's purchase of the Investor Units, it entered into a Stockholder's Agreement with SAFE on January 2, 2019. The Stockholder's Agreement: • limits the Company's discretionary voting power to 41.9% of the outstanding voting power of SAFE's common stock until its aggregate ownership of SAFE common stock is less than 41.9%; • requires the Company to cast all of its voting power in favor of three director nominees to SAFE's board who are independent of each of the Company and SAFE for three years; • subjects the Company to certain standstill provisions for two years; • restricts the Company's ability to transfer shares of SAFE common stock issued in exchange for Investor Units, or "Exchange Shares," for one year after their issuance; • prohibits the Company from transferring shares of SAFE common stock representing more than 20% of the outstanding SAFE common stock in one transaction or a series of related transactions to any person or group, other than pursuant to a widely distributed public offering, unless SAFE's other stockholders have participation rights in the transaction; and • provides the Company certain preemptive rights. In March 2020, the Company acquired 1.7 million shares of SAFE's common stock in a private placement for $80.0 million. A wholly-owned subsidiary of the Company is the external manager of SAFE and is entitled to a management fee. In addition, the Company is also the external manager of a venture in which SAFE is a member. Following are the key terms of the management agreement: • The Company receives a fee equal to 1.0% of total SAFE equity (as defined in the management agreement) up to $1.5 billion; 1.25% of total SAFE equity (for incremental equity of $1.5 billion - $3.0 billion); 1.375% of total SAFE equity (for incremental equity of $3.0 billion - $5.0 billion); and 1.5% of total SAFE equity (for incremental equity over $5.0 billion); • Fee to be paid in cash or in shares of SAFE common stock, at the discretion of SAFE's independent directors; • The stock is locked up for two years, subject to certain restrictions; • There is no additional performance or incentive fee; • The management agreement is non-terminable by SAFE through June 30, 2023, except for cause; and • Automatic annual renewals thereafter, subject to non-renewal upon certain findings by SAFE's independent directors and payment of termination fee equal to three times the prior year's management fee. During the three months ended September 30, 2020 and 2019, the Company recorded $3.2 million and $1.9 million, respectively, of management fees pursuant to its management agreement with SAFE. During the nine months ended September 30, 2020 and 2019, the Company recorded $9.3 million and $5.0 million, respectively, of management fees pursuant to its management agreement with SAFE. The Company is also entitled to receive certain expense reimbursements, including for the allocable costs of its personnel that perform certain legal, accounting, due diligence tasks and other services that third-party professionals or outside consultants otherwise would perform. The Company has elected not to charge in full certain of the expense reimbursements while SAFE is growing its portfolio. During the three months ended September 30, 2020 and 2019, the Company recognized $1.3 million and $0.5 million, respectively, of expense reimbursements pursuant to its management agreement with SAFE. During the nine months ended September 30, 2020 and 2019, the Company recognized $3.8 million and $1.6 million, respectively, of expense reimbursements pursuant to its management agreement with SAFE. The Company has an exclusivity agreement with SAFE pursuant to which it agreed, subject to certain exceptions, that it will not acquire, originate, invest in, or provide financing for a third party’s acquisition of, a Ground Lease unless it has first offered that opportunity to SAFE and a majority of its independent directors has declined the opportunity. Following is a list of investments that the Company has transacted with SAFE, all of which were approved by the Company's and SAFE's independent directors, for the periods presented: In August 2017, the Company committed to provide a $24.0 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan was for the renovation of a medical office building in Atlanta, GA. The Company funded $18.4 million of the loan, which was fully repaid in August 2019. During the three and nine months ended September 30, 2019, the Company recorded $0.3 million and $1.2 million, respectively, of interest income on the loan. In October 2017, the Company closed on a 99-year Ground Lease and a $80.5 million construction financing commitment to support the ground-up development of a to-be-built luxury multi-family project in San Jose, CA. The transaction included a combination of: (i) a newly created Ground Lease and a $7.2 million leasehold improvement allowance, which was fully funded as of September 30, 2020; and (ii) a $80.5 million leasehold first mortgage. As of September 30, 2020, $59.1 million of the leasehold first mortgage was funded. During the three months ended September 30, 2020 and 2019, the Company recorded $0.9 million and $0.4 million, respectively, of interest income on the loan. During the nine months ended September 30, 2020 and 2019, the Company recorded $2.5 million and $0.7 million, respectively, of interest income on the loan. The Company sold the Ground Lease to SAFE in September 2020 for $34.0 million and recognized a gain of $6.1 million in "Income from sales of real estate" in connection with the sale. In May 2018, the Company provided a $19.9 million leasehold mortgage loan to the ground lessee of a Ground Lease originated at SAFE. The loan was for the acquisition of two multi-tenant office buildings in Atlanta, GA. The loan was repaid in full in November 2019 and during the three and nine months ended September 30, 2019, the Company recorded $0.5 million and$1.6 million, respectively, of interest income on the loan. In January 2019, the Company committed to provide a $13.3 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan is for the conversion of an office building into a multi-family property in Washington, DC. As of September 30, 2020 the loan was fully funded. During the three months ended September 30, 2020 and 2019, the Company recorded $0.3 million and $0.3 million, respectively, of interest income on the loan. During the nine months ended September 30, 2020 and 2019, the Company recorded $0.8 million and $0.7 million, respectively, of interest income on the loan. In February 2019, the Company acquired the leasehold interest in an office property and simultaneously entered into a new 98-year Ground Lease with SAFE (refer to Note 4). In August 2019, the Company acquired the leasehold interest in a net lease asset and simultaneously entered into a new 99-year Ground Lease with SAFE (refer to Note 4). In June 2020, Net Lease Venture II (see below) acquired the leasehold interest in an office laboratory property in Honolulu, HI and simultaneously entered into a 99 year Ground Lease with SAFE. Net Lease Venture II —In July 2018, the Company entered into a new venture ("Net Lease Venture II") with an investment strategy similar to the Net Lease Venture. The Net Lease Venture II has a right of first offer on all new net lease investments (excluding Ground Leases) originated by the Company. Net Lease Venture II's investment period ends in June 2021. Net Lease Venture II is a voting interest entity and the Company has an equity interest in the venture of approximately 51.9%. The Company does not have a controlling interest in Net Lease Venture II due to the substantive participating rights of its partner. The Company accounts for its investment in Net Lease Venture II as an equity method investment and is responsible for managing the venture in exchange for a management fee and incentive fee. During the three months ended September 30, 2020 and 2019, the Company recorded $0.4 million and $0.4 million, respectively, of management fees from Net Lease Venture II. During the nine months ended September 30, 2020 and 2019, the Company recorded $1.1 million and $1.1 million, respectively, of management fees from Net Lease Venture II. In December 2019, Net Lease Venture II closed on a commitment to provide up to $150.0 million in net lease financing for the construction of three industrial centers and entered into a 25 year master lease with the tenant. As of September 30, 2020, Net Lease Venture II had funded $81.6 million of its commitment. In December 2019, Net Lease Venture II closed on the acquisition of two grocery distribution centers for $81.8 million, inclusive of assumed debt. The properties are 100% leased with two separate coterminous leveraged leases that expire in February 2026. In December 2018, Net Lease Venture II acquired four buildings comprising 168,636 square feet located in Livermore, CA. Net Lease Venture II acquired the buildings for $31.2 million which are 100% leased with four separate leases that expire in December 2028. Other real estate equity investments —As of September 30, 2020, the Company's other real estate equity investments include equity interests in real estate ventures ranging from 31% to 95%, comprised of investments of $61.3 million in operating properties and $30.4 million in land assets. As of December 31, 2019, the Company's other real estate equity investments included $61.7 million in operating properties and $42.9 million in land assets. In August 2018, the Company provided a mezzanine loan with a principal balance of $33.0 million as of September 30, 2020 and December 31, 2019 to an unconsolidated entity in which the Company owns a 50% equity interest. As of September 30, 2020 and December 31, 2019, the loan is included in "Loans receivable and other lending investments, net" on the Company's consolidated balance sheet. During the three months ended September 30, 2020 and 2019, the Company recorded $0.6 million and $0.7 million, respectively, of interest income on the mezzanine loan. During the nine months ended September 30, 2020 and 2019, the Company recorded $1.8 million and $2.1 million, respectively, of interest income on the mezzanine loan. Other strategic investments —As of September 30, 2020 and December 31, 2019, the Company also had investments in real estate related funds and other strategic investments in real estate entities. Summarized investee financial information —The following table presents the investee level summarized financial information of the Company's equity method investments that were significant as of September 30, 2020 ($ in thousands): Revenues Expenses Net Income Attributable to Parent For the Nine Months Ended September 30, 2020 SAFE $ 115,518 $ 73,821 $ 44,024 For the Nine Months Ended September 30, 2019 SAFE $ 63,810 $ 38,480 $ 16,574 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of September 30, 2020 December 31, 2019 Intangible assets, net (1) $ 158,976 $ 174,973 Restricted cash 47,787 45,034 Finance lease right-of-use assets (2) 144,097 145,209 Operating lease right-of-use assets (2) 50,371 34,063 Other assets (3) 21,114 17,534 Other receivables 16,997 16,846 Leasing costs, net (4) 2,830 3,793 Corporate furniture, fixtures and equipment, net (5) 2,204 2,736 Deferred financing fees, net 1,769 2,300 Deferred expenses and other assets, net $ 446,145 $ 442,488 _______________________________________________________________________________ (1) Intangible assets, net includes above market and in-place lease assets and lease incentives related to the acquisition of real estate assets. Accumulated amortization on intangible assets, net was $42.2 million and $33.4 million as of September 30, 2020 and December 31, 2019, respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.3 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and $1.0 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $2.6 million and $2.4 million for the three months ended September 30, 2020 and 2019, respectively, and $7.9 million and $6.9 million for the nine months ended September 30, 2020 and 2019, respectively. These amounts are included in "Depreciation and amortization" in the Company's consolidated statements of operations. As of September 30, 2020, the weighted average amortization period for the Company's intangible assets was approximately 16.9 years. (2) Right-of-use lease assets relate primarily to the Company's leases of office space and certain of its ground leases. Right-of use lease assets initially equal the lease liability. The lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company's incremental secured borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company's weighted average incremental secured borrowing rate for similar collateral estimated to be 5.1% and the weighted average lease term is 8.5 years. For finance leases, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average lease term is 97.2 years. Right-of-use assets for finance leases are amortized on a straight-line basis over the term of the lease and are recorded in "Depreciation and amortization" in the Company's consolidated statements of operations. During the three months ended September 30, 2020 and 2019, the Company recognized $2.0 million and $1.7 million, respectively, in "Interest expense" and $0.4 million and $0.3 million, respectively, in "Depreciation and amortization" in its consolidated statement of operations relating to finance leases. During the nine months ended September 30, 2020 and 2019, the Company recognized $6.1 million and $3.0 million, respectively, in "Interest expense" and $1.1 million and $0.5 million, respectively, in "Depreciation and amortization" in its consolidated statement of operations relating to finance leases. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in "General and administrative" and "Real estate expense" in the Company's consolidated statements of operations. During the three months ended September 30, 2020 and 2019, the Company recognized $1.2 million and $0.9 million, respectively, in "General and administrative" and $0.9 million and $0.9 million, respectively, in "Real estate expense" in its consolidated statement of operations relating to operating leases. During the nine months ended September 30, 2020 and 2019, the Company recognized $3.4 million and $2.8 million, respectively, in "General and administrative" and $2.6 million and $2.6 million, respectively, in "Real estate expense" in its consolidated statement of operations relating to operating leases. (3) Other assets primarily includes prepaid expenses and deposits for certain real estate assets. (4) Accumulated amortization of leasing costs was $2.5 million and $3.3 million as of September 30, 2020 and December 31, 2019, respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $14.0 million and $13.1 million as of September 30, 2020 and December 31, 2019, respectively. Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of September 30, 2020 December 31, 2019 Other liabilities (1) $ 81,422 81,709 Accrued expenses 84,742 83,778 Finance lease liabilities (see table above) 149,823 147,749 Intangible liabilities, net (2) 49,361 51,223 Operating lease liabilities (see table above) 51,223 34,182 Accrued interest payable 28,385 25,733 Accounts payable, accrued expenses and other liabilities $ 444,956 $ 424,374 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, other liabilities includes $26.8 million and $27.5 million, respectively, of deferred income. As of September 30, 2020 and December 31, 2019, other liabilities includes $20.8 million and $8.7 million, respectively, of derivative liabilities. As of September 30, 2020, other liabilities includes $1.7 million of expected credit losses for unfunded loan commitments. (2) Intangible liabilities, net includes below market lease liabilities related to the acquisition of real estate assets. Accumulated amortization on below market lease liabilities was $6.9 million and $5.0 million as of September 30, 2020 and December 31, 2019, respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.6 million and $0.7 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.8 million for the nine months ended September 30, 2020 and 2019, respectively. |
Loan Participations Payable, ne
Loan Participations Payable, net | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Loan Participations Payable, net | Loan Participations Payable, net The Company's loan participations payable, net were as follows ($ in thousands): Carrying Value as of September 30, 2020 December 31, 2019 Loan participations payable (1) $ 41,941 $ 35,656 Debt premiums, discounts and deferred financing costs, net (10) (18) Total loan participations payable, net $ 41,931 $ 35,638 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, the Company had one loan participation payable with an interest rate of 6.0% and 6.3%, respectively. |
Debt Obligations, net
Debt Obligations, net | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligations, net | Debt Obligations, net The Company's debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled September 30, 2020 December 31, 2019 Secured credit facilities and mortgages: Revolving Credit Facility $ 20,000 $ — LIBOR + 2.00% (1) September 2022 Senior Term Loan 491,875 491,875 LIBOR + 2.75% (2) June 2023 Mortgages collateralized by net lease assets (3) 724,836 721,118 1.70% - 7.26% (3) Total secured credit facilities and mortgages 1,236,711 1,212,993 Unsecured notes: 6.00% senior notes (4) — 110,545 6.00% — 5.25% senior notes (5) — 400,000 5.25% — 3.125% senior convertible notes (6) 287,500 287,500 3.125% September 2022 4.75% senior notes (7) 775,000 775,000 4.75% October 2024 4.25% senior notes (8) 550,000 550,000 4.25% August 2025 5.50% senior notes (9) 400,000 — 5.50% February 2026 Total unsecured notes 2,012,500 2,123,045 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50% October 2035 Total debt obligations 3,349,211 3,436,038 Debt discounts and deferred financing costs, net (41,528) (48,958) Total debt obligations, net (10) $ 3,307,683 $ 3,387,080 _______________________________________________________________________________ (1) The Revolving Credit Facility bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.00% to 1.50%; or (ii) LIBOR subject to a margin ranging from 2.00% to 2.50%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023. (2) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%. (3) As of September 30, 2020, the weighted average interest rate of these loans is 4.4%, inclusive of the effect of interest rate swaps. (4) The Company repaid these senior notes in January 2020. (5) The Company repaid these senior notes in September 2020. (6) The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of September 30, 2020 was 69.7134 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $14.34 per share. The conversion rate is subject to adjustment from time to time for specified events. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. At issuance in September 2017, the Company valued the liability component at $221.8 million, net of fees, and the equity component of the conversion feature at $22.5 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the liability component at $34.0 million, net of fees, and the equity component of the conversion feature at $3.4 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of September 30, 2020, the carrying value of the 3.125% Convertible Notes was $273.5 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $11.6 million, net of fees. As of December 31, 2019, the carrying value of the 3.125% Convertible Notes was $268.7 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $15.5 million, net of fees. During the three months ended September 30, 2020 and 2019, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and $1.3 million and $1.3 million, respectively, of discount amortization on the 3.125% Convertible Notes. During the nine months ended September 30, 2020 and 2019, the Company recognized $6.7 million and $6.7 million, respectively, of contractual interest and $3.9 million and $3.7 million, respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2%. (7) The Company can prepay these senior notes without penalty beginning July 1, 2024. (8) The Company can prepay these senior notes without penalty beginning May 1, 2025. (9) The Company can prepay these senior notes without penalty beginning August 15, 2024. (10) The Company capitalized interest relating to development activities of $0.5 million and $0.5 million during the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $6.9 million during the nine months ended September 30, 2020 and 2019, respectively. Future Scheduled Maturities —As of September 30, 2020, future scheduled maturities of outstanding debt obligations are as follows ($ in thousands): Unsecured Debt Secured Debt Total 2020 (remaining three months) $ — $ — $ — 2021 — 156,891 156,891 2022 287,500 67,074 354,574 2023 — 491,875 491,875 2024 775,000 — 775,000 Thereafter 1,050,000 520,871 1,570,871 Total principal maturities 2,112,500 1,236,711 3,349,211 Unamortized discounts and deferred financing costs, net (35,081) (6,447) (41,528) Total debt obligations, net $ 2,077,419 $ 1,230,264 $ 3,307,683 Senior Term Loan —In June 2018, the Company amended its senior term loan (the "Senior Term Loan") to increase the amount of the loan to $650.0 million, reduce the interest rate to LIBOR plus 2.75% and extend its maturity to June 2023. The Senior Term Loan is secured by pledges of equity of certain subsidiaries that own a defined pool of assets. The Senior Term Loan permits substitution of collateral, subject to overall collateral pool coverage and concentration limits, over the life of the facility. The Company may make optional prepayments, subject to prepayment fees, and is required to repay 0.25% of the principal amount each quarter. Revolving Credit Facility —In September 2019, the Company amended its secured revolving credit facility (the "Revolving Credit Facility") to increase the maximum capacity to $350.0 million, extend the maturity date to September 2022 and make certain other changes. Outstanding borrowings under the Revolving Credit Facility are secured by a pledge of the equity interests in the Company's subsidiaries that own a defined pool of assets. Borrowings under this credit facility bear interest at a floating rate indexed to one of several base rates plus a margin which adjusts upward or downward based upon the Company's corporate credit rating, ranging from 1.0% to 1.5% in the case of base rate loans and from 2.0% to 2.5% in the case of LIBOR loans. In addition, there is an undrawn credit facility commitment fee that ranges from 0.25% to 0.45%, based on corporate credit ratings. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023. As of September 30, 2020, based on the Company's borrowing base of assets, had the ability to draw $330.0 million without pledging any additional assets to the facility. Unsecured Notes —In August 2020, the Company issued $400.0 million principal amount of 5.50% senior unsecured notes due February 2026. Proceeds from the offering, together with cash on hand, were used to repay in full the $400.0 million principal amount outstanding of the 5.25% senior unsecured notes due September 2022. In September 2019, the Company issued $675.0 million principal amount of 4.75% senior unsecured notes due October 2024. Proceeds from the offering, together with cash on hand, were used to repay in full the $400.0 million principal amount outstanding of the 4.625% senior unsecured notes due September 2020 and the $275.0 million principal amount outstanding of the 6.50% senior unsecured notes due July 2021. In November 2019, the Company issued an additional $100.0 million principal amount of 4.75% senior unsecured notes due October 2024 at 102% of par, representing a yield to maturity of 4.29%. In December 2019, the Company issued $550.0 million principal amount of 4.25% senior unsecured notes due August 2025. Proceeds from the offering were used to redeem the $375.0 million principal amount outstanding ($110.5 million was redeemed in January 2020) of the 6.00% senior unsecured notes due April 2022, repay a portion of the borrowings outstanding under the Senior Term Loan and pay related premiums and expenses in connection with the transaction. During the nine months ended September 30, 2020 and 2019, repayments of unsecured notes prior to maturity resulted in losses on early extinguishment of debt of $12.0 million and $0.5 million, respectively. Debt Covenants —The Company's outstanding unsecured debt securities contain corporate level covenants that include a covenant to maintain a ratio of unencumbered assets to unsecured indebtedness, as such terms are defined in the indentures governing the debt securities, of at least 1.2x and a covenant restricting certain incurrences of debt based on a fixed charge coverage ratio. If any of the Company's covenants are breached and not cured within applicable cure periods, the breach could result in acceleration of its debt securities unless a waiver or modification is agreed upon with the requisite percentage of the bondholders. The Company's Senior Term Loan and the Revolving Credit Facility contain certain covenants, including covenants relating to collateral coverage, restrictions on fundamental changes, transactions with affiliates, matters relating to the liens granted to the lenders and the delivery of information to the lenders. In particular, the Senior Term Loan requires the Company to maintain collateral coverage of at least 1.25x outstanding borrowings on the facility. The Revolving Credit Facility is secured by a borrowing base of assets and requires the Company to maintain both borrowing base asset value of at least 1.5x outstanding borrowings on the facility and a consolidated ratio of cash flow to fixed charges of at least 1.5x. The Revolving Credit Facility does not require that proceeds from the borrowing base be used to pay down outstanding borrowings provided the borrowing base asset value remains at least 1.5x outstanding borrowings on the facility. To satisfy this covenant, the Company has the option to pay down outstanding borrowings or substitute assets in the borrowing base. Under both the Senior Term Loan and the Revolving Credit Facility the Company is permitted to pay dividends provided that no material default (as defined in the relevant agreement) has occurred and is continuing or would result therefrom and the Company remains in compliance with its financial covenants after giving effect to the dividend. The Company's Senior Term Loan and the Revolving Credit Facility contain cross default provisions that would allow the lenders to declare an event of default and accelerate the Company's indebtedness to them if the Company fails to pay amounts due in respect of its other recourse indebtedness in excess of specified thresholds or if the lenders under such other indebtedness are otherwise permitted to accelerate such indebtedness for any reason. The indentures governing the Company's unsecured public debt securities permit the bondholders to declare an event of default and accelerate the Company's indebtedness to them if the Company's other recourse indebtedness in excess of specified thresholds is not paid at final maturity or if such indebtedness is accelerated. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unfunded Commitments —The Company generally funds construction and development loans and build-outs of space in real estate assets over a period of time if and when the borrowers and tenants meet established milestones and other performance criteria. The Company refers to these arrangements as Performance-Based Commitments. In addition, the Company has committed to invest capital in several real estate funds and other ventures. These arrangements are referred to as Strategic Investments. As of September 30, 2020, the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands): Loans and Other Lending Investments (1) Real Estate Other Total Performance-Based Commitments $ 83,423 $ 14,726 $ 27,902 $ 126,051 Strategic Investments — — 9,967 9,967 Total $ 83,423 $ 14,726 $ 37,869 $ 136,018 _______________________________________________________________________________ (1) Excludes $8.0 million of commitments on loan participations sold that are not the obligation of the Company. Other Commitments —Future minimum lease obligations under operating and finance leases as of September 30, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 (remaining three months) $ 1,065 $ 1,357 2021 3,797 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 Thereafter 6,793 1,573,773 Total undiscounted cash flows 31,113 1,597,774 Present value discount (1) (4,103) (1,447,951) Other adjustments (2) 24,213 — Lease liabilities $ 51,223 $ 149,823 _______________________________________________________________________________ (1) During the three months ended September 30, 2020 and 2019, the Company made payments of $1.0 million and $1.0 million, respectively, related to its operating leases and $1.4 million and $1.1 million, respectively, related to its finance leases. During the nine months ended September 30, 2020 and 2019, the Company made payments of $3.2 million and $3.0 million, respectively, related to its operating leases and $4.0 million and $2.0 million, respectively, related to its finance leases. The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 5.8 years and the weighted average discount rate was 5.0%. The weighted average lease term for the Company's finance leases was 97.2 years and the weighted average discount rate was 5.5%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2019 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 $ 4,167 $ 5,386 2021 1,803 5,494 2022 1,098 5,604 2023 728 5,716 2024 617 5,830 Thereafter 1,447 1,573,824 Total undiscounted cash flows 9,860 1,601,854 Present value discount (1) (1,057) (1,454,105) Other adjustments (2) 25,379 — Lease liabilities $ 34,182 $ 147,749 _______________________________________________________________________________ (1) The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 4.2 years and the weighted average discount rate was 5.6%. The weighted average lease term for the Company's finance leases was 93 years and the weighted average discount rate was 5.4%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. Legal Proceedings —The Company and/or one or more of its subsidiaries is party to various pending litigation matters that are considered ordinary routine litigation incidental to the Company's business as a finance and investment company focused on the commercial real estate industry, including foreclosure-related proceedings. The Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company’s consolidated financial statements. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DerivativesThe Company's use of derivative financial instruments has historically been limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. The Company may have derivatives that are not designated as hedges because they do not meet the strict hedge accounting requirements. Although not designated as hedges, such derivatives are entered into to manage the Company's exposure to interest rate movements and other identified risks. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2020 and December 31, 2019 ($ in thousands): (1) Derivative Assets Derivative Liabilities As of September 30, 2020 Balance Sheet Fair Balance Sheet Fair Derivatives Designated in Hedging Relationships Interest rate swaps Deferred expenses and other assets, net $ — Accounts payable, accrued expenses and other liabilities $ 20,818 Total $ — $ 20,818 Derivative Assets Derivative Liabilities As of December 31, 2019 Balance Sheet Fair Balance Sheet Fair Derivatives Designated in Hedging Relationships Interest rate swaps Deferred expenses and other assets, net $ 114 Accounts payable, accrued expenses and other liabilities $ 8,680 Total $ 114 $ 8,680 _________________________________________________________ (1) Over the next 12 months, the Company expects that $9.8 million related to cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" as an increase to interest expense. The tables below present the effect of the Company's derivative financial instruments, including the Company's share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Derivatives Designated in Hedging Relationships Location of Gain (Loss) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings For the Three Months Ended September 30, 2020 Interest rate swaps Earnings from equity method investments $ 598 $ (333) Interest rate swaps Interest expense (401) (2,038) For the Three Months Ended September 30, 2019 Interest rate swaps Interest Expense (3,009) (539) Interest rate swaps Earnings from equity method investments (6,082) (126) For the Nine Months Ended September 30, 2020 Interest rate swaps Earnings from equity method investments (15,559) (866) Interest rate swaps Interest expense (15,371) (4,926) For the Nine Months Ended September 30, 2019 Interest rate swaps Interest Expense (23,781) (957) Interest rate swaps Earnings from equity method investments (21,309) 28 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock —In December 2019, the Company issued an aggregate 16.5 million shares of its common stock upon conversion of its outstanding Series J Preferred Stock at a conversion rate of 4.125 shares of common stock per each share of Series J Preferred Stock. The total carrying value of the Series J Preferred Stock prior to redemption was $193.5 million, net of discounts and fees, and was recorded in "Additional paid-in-capital" and "Convertible Preferred Stock Series J, liquidation preference $50.00 per share" on the Company's consolidated balance sheet prior to the conversion. The Company had the following series of Cumulative Redeemable Preferred Stock outstanding as of September 30, 2020 and December 31, 2019: Cumulative Preferential Cash Dividends (1)(2) Series Shares Issued and Par Value Liquidation Preference (3) Rate per Annum Annual Carrying Value D 4,000 $ 0.001 $ 25.00 8.00 % $ 2.00 $ 89,041 G 3,200 0.001 25.00 7.65 % 1.91 72,664 I 5,000 0.001 25.00 7.50 % 1.88 120,785 Total 12,200 $ 282,490 ________________________________________ (1) Holders of shares of the Series D, G and I preferred stock are entitled to receive dividends, when and as declared by the Company's Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360-day year consisting of twelve (2) The Company declared and paid dividends of $6.0 million, $4.6 million and $7.0 million on its Series D, G and I Cumulative Redeemable Preferred Stock during both the nine months ended September 30, 2020 and 2019. The Company declared and paid dividends of $6.8 million on its Series J Convertible Perpetual Preferred Stock during the nine months ended September 30, 2019. The character of the 2019 dividends was 100% capital gain distribution, of which 34.01% represented unrecaptured section 1250 gain. There are no dividend arrearages on any of the preferred shares currently outstanding. (3) The Company may, at its option, redeem the Series G and I Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. Dividends —To maintain its qualification as a REIT, the Company must annually distribute, at a minimum, an amount equal to 90% of its taxable income, excluding net capital gains, and must distribute 100% of its taxable income (including net capital gains) to eliminate corporate federal income taxes payable by the REIT. The Company has recorded NOLs and may record NOLs in the future, which may reduce its taxable income in future periods and lower or eliminate entirely the Company's obligation to pay dividends for such periods in order to maintain its REIT qualification. As of December 31, 2019, the Company had $460.6 million of NOL carryforwards at the corporate REIT level that can generally be used to offset both ordinary taxable income and capital gain net income in future years. The NOL carryforwards will begin to expire in 2031 and will fully expire in 2036 if unused. Because taxable income differs from cash flow from operations due to non-cash revenues and expenses (such as depreciation and certain asset impairments), in certain circumstances, the Company may generate operating cash flow in excess of its dividends, or alternatively, may need to make dividend payments in excess of operating cash flows. The Senior Term Loan and the Revolving Credit Facility permit the Company to pay common dividends with no restrictions so long as the Company is not in default on any of its debt obligations. The Company declared common stock dividends of $24.6 million, or $0.32 per share, for the nine months ended September 30, 2020 and $19.0 million, or $0.29 per share, for the nine months ended September 30, 2019. Stock Repurchase Program —The Company may repurchase shares in negotiated transactions or open market transactions, including through one or more trading plans. During the nine months ended September 30, 2020, the Company repurchased 3.7 million shares of its outstanding common stock for $41.4 million, for an average cost of $11.32 per share. During the nine months ended September 30, 2019, the Company repurchased 6.2 million shares of its outstanding common stock for $58.8 million, for an average cost of $9.44 per share. In August 2020, the Company's Board of Directors authorized an increase to the stock repurchase program to $50.0 million. As of September 30, 2020, the Company had remaining authorization to repurchase up to $40.8 million of common stock under its stock repurchase program. Accumulated Other Comprehensive Income (Loss) —"Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands): As of September 30, 2020 December 31, 2019 Unrealized gains on available-for-sale securities $ 3,951 $ 2,756 Unrealized losses on cash flow hedges (56,863) (37,264) Unrealized losses on cumulative translation adjustment (4,199) (4,199) Accumulated other comprehensive loss $ (57,111) $ (38,707) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Employee Benefits | Stock-Based Compensation Plans and Employee Benefits Stock-Based Compensation —The Company recorded stock-based compensation expense, including the expense related to performance incentive plans (see below), of $5.7 million and $26.7 million for the three and nine months ended September 30, 2020, respectively, and $6.7 million and $20.7 million for the three and nine months ended September 30, 2019, respectively, in "General and administrative" in the Company's consolidated statements of operations. Performance Incentive Plans —The Company's Performance Incentive Plans ("iPIP") are designed to provide, primarily to senior executives and select professionals engaged in the Company's investment activities, long-term compensation which has a direct relationship to the realized returns on investments included in the plans. Awards vest over six years, with 40% being vested at the end of the second year and 15% each year thereafter. 2019-2020 iPIP Plan —The Company's 2019-2020 iPIP plan is an equity-classified award which is measured at the grant date fair value and recognized as compensation cost in "General and administrative" in the Company's consolidated statements of operations and "Noncontrolling interests" in the Company's consolidated statements of changes in equity over the requisite service period. Investments in the 2019-2020 iPIP plan will be held by a consolidated subsidiary of the Company that has two ownership classes, class A units and class B units. The Company owns 100% of the class A units and the class B units were issued to employees as long-term compensation. Except for certain clawback provisions, participants can retain vested class B units upon their termination of employment with the Company. The class B units are entitled to distributions from the net cash realized from the investments in the plan after the Company, through its ownership of the class A units, has received a specified return on its invested capital and a return of its invested capital. Distributions on the class B units are also subject to reductions under a total shareholder return ("TSR") adjustment. The fair value of the class B units was determined using a model that forecasts the underlying cash flows from the investments within the entity to which the class B units have ownership rights. During the nine months ended September 30, 2020 and 2019, the Company recorded $2.5 million and $2.0 million, respectively, of expense related to the 2019-2020 iPIP plan. Distributions on the class B units will be 50% in cash and 50% in shares of the Company's common stock or in shares of SAFE's common stock owned by the Company. 2013-2018 iPIP Plans —The remainder of the Company's iPIP plans, as shown in the table below, are liability-classified awards and are remeasured each reporting period at fair value until the awards are settled. Certain employees will be granted awards that entitle employees to receive the residual cash flows from the investments in the plans after the Company has received a specified return on its invested capital and a return of its invested capital. Awards are also subject to reductions under a TSR adjustment. The fair value of awards is determined using a model that forecasts the Company's projected investment performance. Settlement of the awards will be 50% in cash and 50% in shares of the Company's common stock or in shares of SAFE's common stock owned by the Company. The following is a summary of the status of the Company’s liability-classified iPIP plans and changes during the nine months ended September 30, 2020. iPIP Investment Pool 2013-2014 2015-2016 2017-2018 Points at beginning of period 81.17 73.28 77.27 Forfeited (1.00) (2.88) (3.93) Points at end of period 80.17 70.40 73.34 During the nine months ended September 30, 2020 and 2019, the Company recorded $20.2 million and $14.1 million, respectively, of expense related to the 2013-2018 iPIP plans. During the nine months ended September 30, 2020, the Company made distributions to participants in the 2015-2016 investment pool. The iPIP participants received total distributions in the amount of $1.5 million as compensation, comprised of cash and 54,245 shares of the Company's common stock with a fair value of $14.51 per share, which are fully-vested and issued under the 2009 LTIP (see below). After deducting statutory minimum tax withholdings, a total of 32,825 shares of the Company's common stock were issued. During the nine months ended September 30, 2019, the Company made distributions to participants in the 2013-2014 investment pool. The iPIP participants received total distributions in the amount of $7.4 million as compensation, comprised of cash and 389,545 shares of the Company's common stock, with a fair value of $9.21 per share, which are fully-vested and issued under the 2009 LTIP (see below). After deducting statutory minimum tax withholdings, a total of 209,118 shares of the Company's common stock were issued. As of September 30, 2020 and December 31, 2019, the Company had accrued compensation costs relating to iPIP of $58.6 million and $41.9 million, respectively, which are included in "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheets. Long-Term Incentive Plan —The Company's 2009 Long-Term Incentive Plan (the "2009 LTIP") is designed to provide incentive compensation for officers, key employees, directors and advisors of the Company. The 2009 LTIP provides for awards of stock options, shares of restricted stock, phantom shares, restricted stock units, dividend equivalent rights and other share-based performance awards. All awards under the 2009 LTIP are made at the discretion of the Company's Board of Directors or a committee of the Board of Directors. The Company's shareholders approved the 2009 LTIP in 2009 and approved the performance-based provisions of the 2009 LTIP, as amended, in 2014. In May 2019, the Company's shareholders approved an increase in the number of shares available for issuance under the 2009 LTIP from a maximum of 8.0 million to 8.9 million and extended the expiration date of the 2009 LTIP from May 2019 to May 2029. As of September 30, 2020, an aggregate of 2.4 million shares remain available for issuance pursuant to future awards under the Company's 2009 LTIP. Restricted Stock Unit Activity —A summary of the Company’s stock-based compensation awards to certain employees in the form of long-term incentive awards for the nine months ended September 30, 2020, is as follows (in thousands): Nonvested at beginning of period 598 Granted 181 Vested (109) Nonvested at end of period 670 As of September 30, 2020, there was $3.3 million of total unrecognized compensation cost related to all unvested restricted stock units that are expected to be recognized over a weighted average remaining vesting/service period of 1.2 years. Directors' Awards —During the nine months ended September 30, 2020, the Company granted 79,138 restricted shares of common stock to non-employee Directors at a fair value of $9.75 at the time of grant for their annual equity awards, 10,710 restricted shares of common stock to a non-employee Director at a fair value of $11.52 at the time of grant for their annual equity awards and also issued 2,438 common stock equivalents ("CSEs") at a fair value of $11.48 per CSE in respect of dividend equivalents on outstanding CSEs. As of September 30, 2020, a combined total of 178,864 CSEs and restricted shares of common stock granted to members of the Company's Board of Directors remained outstanding under the Company's Non-Employee Directors Deferral Plan, with an aggregate intrinsic value of $2.1 million. 401(k) Plan —The Company made contributions of $0.2 million and $0.1 million for the three months ended September 30, 2020 and 2019, respectively, and $1.0 million and $0.8 million for the nine months ended September 30, 2020 and 2019, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of income from operations used in the basic and diluted earnings per share ("EPS") calculations ($ in thousands, except for per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) $ 6,451 $ 3,626 $ (20,793) $ 370,347 Net income attributable to noncontrolling interests (2,646) (2,845) (8,435) (8,168) Preferred dividends (5,874) (8,124) (17,622) (24,372) Net income (loss) allocable to common shareholders for basic earnings per common share $ (2,069) $ (7,343) $ (46,850) $ 337,807 Add: Effect of Series J convertible perpetual preferred stock — — — 6,750 Net income (loss) allocable to common shareholders for diluted earnings per common share $ (2,069) $ (7,343) $ (46,850) $ 344,557 For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Earnings allocable to common shares: Numerator for basic earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ (2,069) $ (7,343) $ (46,850) $ 337,807 Numerator for diluted earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ (2,069) $ (7,343) $ (46,850) $ 344,557 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 75,033 62,168 76,232 64,624 Add: Effect of assumed shares issued under treasury stock method for restricted stock units — — — 114 Add: Effect of series J convertible perpetual preferred stock — — — 16,138 Weighted average common shares outstanding for diluted earnings per common share 75,033 62,168 76,232 80,876 Basic earnings per common share: Net income (loss) allocable to common shareholders $ (0.03) $ (0.12) $ (0.61) $ 5.23 Diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ (0.03) $ (0.12) $ (0.61) $ 4.26 ____________________________________________________________ |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Fair Values Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs to be used in valuation techniques to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Certain of the Company's assets and liabilities are recorded at fair value either on a recurring or non-recurring basis. Assets required to be marked-to-market and reported at fair value every reporting period are classified as being valued on a recurring basis. Assets not required to be recorded at fair value every period may be recorded at fair value if a specific provision or other impairment is recorded within the period to mark the carrying value of the asset to market as of the reporting date. Such assets are classified as being valued on a non-recurring basis. The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands): Fair Value Using Total Quoted market Significant other Significant As of September 30, 2020 Recurring basis: Derivative liabilities (1) $ 20,818 $ — $ 20,818 $ — Available-for-sale securities (1) 24,631 — — 24,631 Non-recurring basis: Other investments (2) 62,961 — 62,961 — As of December 31, 2019 Recurring basis: Derivative assets (1) $ 114 $ — $ 114 $ — Derivative liabilities (1) 8,680 — 8,680 — Available-for-sale securities (1) 23,896 — — 23,896 Non-recurring basis: Impaired land and development (3) 40,000 — — 40,000 ____________________________________________________________ (1) The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3. (2) During the three months ended September 30, 2020, the Company identified an observable price change in an equity security held by the Company as evidenced by an orderly private issuance of similar securities by the same issuer and, as such, classified such observable price change as Level 2. (3) The Company recorded aggregate impairments of $5.3 million on two land and development assets with an estimated aggregate fair value of $40.0 million. The estimated fair values are based on expected sales proceeds. The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the nine months ended September 30, 2020 and 2019 ($ in thousands): 2020 2019 Beginning balance $ 23,896 $ 21,661 Repayments (460) (45) Unrealized gains recorded in other comprehensive income 1,195 2,486 Ending balance $ 24,631 $ 24,102 Fair values of financial instruments— The Company's estimated fair values of its loans receivable and other lending investments and outstanding debt was $0.8 billion and $3.3 billion, respectively, as of September 30, 2020 and $0.9 billion and $3.6 billion, respectively, as of December 31, 2019. The Company determined that the significant inputs used to value its loans receivable and other lending investments and debt obligations fall within Level 3 of the fair value hierarchy. The carrying value of other financial instruments including cash and cash equivalents, restricted cash and net investment in leases, approximate the fair values of the instruments. Cash and cash equivalents and restricted cash values are considered Level 1 on the fair value hierarchy. The fair value of other financial instruments, including derivative assets and liabilities, are included in the fair value hierarchy table above. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Net Lease, Real Estate Finance, Operating Properties and Land and Development. The Net Lease segment includes the Company's activities and operations related to the ownership of properties generally leased to single corporate tenants and its investment in SAFE (refer to Note 8). The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans and real estate related securities. The Operating Properties segment includes the Company's activities and operations related to its commercial and residential properties. The Land and Development segment includes the Company's activities related to its developable land portfolio. The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands): Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total Three Months Ended September 30, 2020: Operating lease income $ 41,144 $ — $ 5,137 $ 89 $ — $ 46,370 Interest income 911 13,359 — — — 14,270 Interest income from sales-type leases 8,360 — — — — 8,360 Other income 4,554 104 2,956 3,831 14,107 25,552 Land development revenue — — — 20,502 — 20,502 Earnings (losses) from equity method investments 10,141 — (4,134) 592 206 6,805 Income from sales of real estate 6,055 — — — — 6,055 Total revenue and other earnings 71,165 13,463 3,959 25,014 14,313 127,914 Real estate expense (7,136) — (4,428) (5,371) — (16,935) Land development cost of sales — — — (21,358) — (21,358) Other expense — (37) — — (36) (73) Allocated interest expense (26,049) (5,831) (2,289) (4,606) (3,632) (42,407) Allocated general and administrative (2) (5,161) (1,451) (582) (2,320) (4,693) (14,207) Segment profit (loss) (3) $ 32,819 $ 6,144 $ (3,340) $ (8,641) $ 5,952 $ 32,934 Other significant items: Provision for (recovery of) loan losses $ 19 $ (1,995) $ — $ — $ — $ (1,976) Provision for losses on net investment in leases 175 — — — — 175 Depreciation and amortization 12,781 — 1,287 243 310 14,621 Capitalized expenditures 1,896 — 84 5,170 — 7,150 Three Months Ended September 30, 2019: Operating lease income $ 38,006 $ — $ 6,034 $ 70 $ — $ 44,110 Interest income 789 18,912 — — — 19,701 Interest income from sales-type leases 8,339 — — — — 8,339 Other income 6,347 115 7,611 2,124 2,073 18,270 Land development revenue — — — 54,918 — 54,918 Earnings (losses) from equity method investments 2,848 — 4,875 (301) 195 7,617 Income from sales of real estate 3,458 — 18 — — 3,476 Total revenue and other earnings 59,787 19,027 18,538 56,811 2,268 156,431 Real estate expense (6,460) — (9,314) (7,413) — (23,187) Land development cost of sales — — — (48,101) — (48,101) Other expense — (49) — — (358) (407) Allocated interest expense (25,176) (6,902) (2,393) (5,268) (6,783) (46,522) Allocated general and administrative (2) (6,887) (2,035) (727) (3,019) (4,702) (17,370) Segment profit (loss) (3) $ 21,264 $ 10,041 $ 6,104 $ (6,990) $ (9,575) $ 20,844 Other significant items: Recovery of loan losses $ — $ (3,805) $ — $ — $ — $ (3,805) Depreciation and amortization 12,409 — 1,244 243 303 14,199 Capitalized expenditures 7,846 — 2,816 20,536 — 31,198 Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total Nine Months Ended September 30, 2020: Operating lease income $ 124,109 $ — $ 16,153 $ 267 $ — $ 140,529 Interest income 2,594 44,331 — — — 46,925 Interest income from sales-type leases 25,010 — — — — 25,010 Other income 13,468 4,249 6,605 5,558 26,332 56,212 Land development revenue — — — 116,254 — 116,254 Earnings (losses) from equity method investments 38,472 — (11,741) 1,225 (1,953) 26,003 Income from sales of real estate 6,056 — 62 — — 6,118 Total revenue and other earnings 209,709 48,580 11,079 123,304 24,379 417,051 Real estate expense (19,497) — (16,600) (17,611) — (53,708) Land development cost of sales — — — (114,704) — (114,704) Other expense — (80) — — (271) (351) Allocated interest expense (74,915) (17,989) (6,731) (13,598) (14,515) (127,748) Allocated general and administrative (2) (17,327) (5,123) (1,966) (7,524) (14,523) (46,463) Segment profit (loss) (3) $ 97,970 $ 25,388 $ (14,218) $ (30,133) $ (4,930) $ 74,077 Other significant non-cash items: Provision for loan losses $ 212 $ 3,881 $ — $ — $ — $ 4,093 Provision for losses on net investment in leases 2,001 — — — — 2,001 Impairment of assets 2,036 — 2,983 1,472 — 6,491 Depreciation and amortization 37,924 — 3,843 729 911 43,407 Capitalized expenditures 8,913 — 1,421 25,222 — 35,556 Nine Months Ended September 30, 2019: Operating lease income $ 136,150 $ — $ 21,844 $ 216 $ — $ 158,210 Interest income 1,197 59,220 — — — 60,417 Interest income from sales-type leases 12,157 — — — — 12,157 Other income 12,705 2,836 13,960 6,877 6,755 43,133 Land development revenue — — — 76,691 — 76,691 Earnings (losses) from equity method investments 13,660 — (166) 2,910 162 16,566 Selling profit from sales-type leases 180,416 — — — — 180,416 Income from sales of real estate 223,200 — 10,206 — — 233,406 Total revenue and other earnings 579,485 62,056 45,844 86,694 6,917 780,996 Real estate expense (18,335) — (28,646) (24,184) — (71,165) Land development cost of sales — — — (71,785) — (71,785) Other expense — (359) — — (12,439) (12,798) Allocated interest expense (70,548) (23,251) (7,859) (15,888) (19,305) (136,851) Allocated general and administrative (2) (19,299) (6,523) (2,214) (9,199) (14,583) (51,818) Segment profit (loss) (3) $ 471,303 $ 31,923 $ 7,125 $ (34,362) $ (39,410) $ 436,579 Other significant non-cash items: Recovery of loan losses $ — $ (3,792) $ — $ — $ — $ (3,792) Impairment of assets — — 3,853 1,100 — 4,953 Depreciation and amortization 38,242 — 3,701 733 910 43,586 Capitalized expenditures 12,707 — 4,878 86,029 — 103,614 Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total As of September 30, 2020 Real estate, net $ 1,288,931 $ — $ 198,164 $ — $ — $ 1,487,095 Real estate available and held for sale — — 5,519 — — 5,519 Total real estate 1,288,931 — 203,683 — — 1,492,614 Net investment in leases 420,417 — — — — 420,417 Land and development, net — — — 488,916 — 488,916 Loans receivable and other lending investments, net 44,528 720,545 — — — 765,073 Other investments 959,201 — 61,315 30,357 72,220 1,123,093 Total portfolio assets $ 2,713,077 $ 720,545 $ 264,998 $ 519,273 $ 72,220 4,290,113 Cash and other assets 598,010 Total assets $ 4,888,123 As of December 31, 2019 Real estate, net $ 1,327,082 $ — $ 200,137 $ — $ — $ 1,527,219 Real estate available and held for sale — — 8,650 — — 8,650 Total real estate 1,327,082 — 208,787 — — 1,535,869 Net investment in leases 418,915 — — — — 418,915 Land and development, net — — — 580,545 — 580,545 Loans receivable and other lending investments, net 44,339 783,522 — — — 827,861 Other investments 760,068 — 61,686 42,866 43,255 907,875 Total portfolio assets $ 2,550,404 $ 783,522 $ 270,473 $ 623,411 $ 43,255 4,271,065 Cash and other assets 814,044 Total assets $ 5,085,109 _______________________________________________________________________________ (1) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above. (2) General and administrative excludes stock-based compensation expense of $5.7 million and $26.7 million for the three and nine months ended September 30, 2020, respectively, and $6.7 million and $20.7 million for the three and nine months ended September 30, 2019, respectively. (3) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Segment profit $ 32,934 $ 20,844 $ 74,077 $ 436,579 Less: Recovery of (provision for) loan losses 1,976 3,805 (4,093) 3,792 Less: Provision for losses on net investment in leases (175) — (2,001) — Less: Impairment of assets — — (6,491) (4,953) Less: Stock-based compensation expense (5,661) (6,740) (26,675) (20,694) Less: Depreciation and amortization (14,621) (14,199) (43,407) (43,586) Less: Income tax expense (78) (84) (165) (323) Less: Loss on early extinguishment of debt, net (7,924) — (12,038) (468) Net income (loss) $ 6,451 $ 3,626 $ (20,793) $ 370,347 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Adoption of Accounting Standards Updates and New Accounting Pronouncements | The following paragraph describes the impact on the Company's consolidated financial statements from the adoption of Accounting Standards Updates ("ASUs") on January 1, 2020. The Company adopted ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), as amended, on January 1, 2020 using the modified retrospective approach method. Under the modified retrospective approach, the Company recorded a cumulative effect adjustment to retained earnings by increasing its allowance for loan losses and recording an initial allowance for losses on net investment in leases. Periods presented that are prior to the adoption date of January 1, 2020 will not be adjusted. ASU 2016-13 replaced the incurred loss impairment methodology with a methodology that reflects a current expected credit loss ("Expected Loss"). ASU 2016-13 impacted all of the Company’s investments held at amortized cost, which included its loans (including unfunded loan commitments), financing receivables, net investment in leases and held-to-maturity debt securities. Upon adoption of ASU 2016-13 on January 1, 2020, the Company recorded an increase to its allowance for loan losses of $3.3 million and an initial allowance for losses on net investment in leases of $9.1 million, both of which were recorded as a cumulative effect adjustment to retained earnings. Subsequent increases or decreases in the allowance for loan losses or the allowance for losses on net investment in leases will be charged to "Provision for (recovery of) loan losses" and "Provision for (recovery of) losses on net investment in leases," respectively, in the Company's consolidated statements of operations. Refer to "Significant Accounting Policies" below for more information on how the Company determines its allowance for loan losses and its allowance for losses on net investment in leases. New Accounting Pronouncements — In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) ("ASU 2020-06"). ASU 2020-06 was issued to reduce the complexity associated with applying current accounting guidance for certain financial instruments with characteristics of both liabilities and equity. ASU 2020-06 removes certain separation models under ASC 470-20 so that a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. In addition, ASU 2020-06 requires that the if-converted method be used for all convertibles and that the treasury stock method no longer be used. ASU 2020-06 is effective for interim and annual reporting periods beginning after December 15, 2021. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Management is currently evaluating the impact of ASU 2020-06 on the Company’s consolidated financial statements. |
Allowance for Loan Losses and Net Investment in Leases | Allowance for Loan Losses and Net Investment in Leases— The Company performs quarterly a comprehensive analysis of its loan and sales-type lease portfolios and assigns risk ratings that incorporate management's current judgments about credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower or tenant financial resources and investment collateral, collateral type, project economics and geographical location as well as national and regional economic factors. This methodology results in loans and sales-type leases being risk rated, with ratings ranging from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The Company estimates loss rates based on historical realized losses experienced within its portfolio taking into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience. Upon adoption of ASU 2016-13 on January 1, 2020, the Company estimates its Expected Loss on its loans (including unfunded loan commitments), held-to-maturity debt securities and net investment in leases based on relevant information including historical realized loss rates, current market conditions and reasonable and supportable forecasts that affect the collectability of its investments. The estimate of the Company's Expected Loss requires significant judgment and the Company analyzes its loan portfolio based upon its different categories of financial assets, which includes (i) loans and held-to-maturity debt securities; (ii) construction loans; and (iii) net investment in leases and financings that resulted from the acquisition of properties that did not qualify as a sale leaseback transaction and, as such, are accounted for as financing receivables (refer to Note 5). For the Company's loans and held-to-maturity debt securities, the Company utilized a loan loss model developed by Trepp LLC ("Trepp") to estimate its Expected Loss. The model is a loss forecasting tool that utilizes loan level data including each loans position in the capital structure, interest rates, maturity dates, unfunded commitments, debt service coverage ratios, etc. and also utilizes forward looking macroeconomic variables and pool-level mean loss rates to produce an Expected Loss over the life each loan. The Company utilized the model to estimate its Expected Loss for this category of loans after inputting its individual loan level data for this category of loans into the model. For the Company's construction loans, the Company analyzed its historical realized loss experience on its construction loan portfolio to estimate its Expected Loss. The Company also utilized third-party market data that included historical loss rates on commercial real estate loans and forecasted economic trends, including interest and unemployment rates. The Company utilized the third-party market data to support the Expected Loss the Company calculated using its own historical realized loss experience. For the Company's net investment in leases and financings that resulted from the acquisition of properties that did not qualify as sale leaseback transactions, the Company analyzed historical loss rates for lessors from tenants with a credit rating similar to the Company's tenant at these properties. The Company also utilized third-party market information as well as market data from Trepp which forecasted economic trends, including interest and unemployment rates, to assist in developing a probability of default and loss given default to calculate the Company's Expected Loss. The Company utilized the third-party market information to support the Expected Loss the Company calculated by analyzing the historical loss rates for lessors from tenants with a credit rating similar to the Company's tenant. The Company considers a loan or sales-type lease to be non-performing and places it on non-accrual status at such time as: (1) interest payments become 90 days delinquent; (2) it has a maturity default; or (3) management determines it is probable that it will be unable to collect all amounts due according to the contractual terms of the loan or sales-type lease. Non-accrual loans or sales-type leases are returned to accrual status when they have become contractually current and management believes all amounts contractually owed will be received. The Company will record a specific allowance on a non-performing loan or sales-type lease if the Company determines that the collateral fair value less costs to sell is less than the carrying value of the collateral-dependent asset. The specific allowance is increased (decreased) through "Provision for (recovery of) loan losses" or "Provision for losses on net investment in leases" in the Company's consolidated statements of operations and is decreased by charge-offs. During delinquency and the foreclosure process, there are typically numerous points of negotiation with the borrower or tenant as the Company works toward a settlement or other alternative resolution, which can impact the potential for repayment or receipt of collateral. The Company's policy is to charge off a loan when it determines, based on a variety of factors, that all commercially reasonable means of recovering the loan balance have been exhausted. This may occur at different times, including when the Company receives cash or other assets in a pre-foreclosure sale or takes control of the underlying collateral in full satisfaction of the loan upon foreclosure or deed-in-lieu, or when the Company has otherwise ceased significant |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of assets and liabilities of consolidated VIEs | The following table presents the assets and liabilities of the Company's consolidated VIEs as of September 30, 2020 and December 31, 2019 ($ in thousands): As of September 30, December 31, ASSETS Real estate Real estate, at cost $ 898,733 $ 891,000 Less: accumulated depreciation (55,785) (37,542) Real estate, net 842,948 853,458 Land and development, net 249,585 273,617 Other investments 39 45 Cash and cash equivalents 29,933 19,112 Accrued interest and operating lease income receivable, net 1,154 1,208 Deferred operating lease income receivable, net 26,998 19,547 Deferred expenses and other assets, net 126,573 134,117 Total assets $ 1,277,230 $ 1,301,104 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 118,786 $ 107,455 Debt obligations, net 490,987 482,918 Total liabilities 609,773 590,373 |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of real estate assets | The Company's real estate assets were comprised of the following ($ in thousands): Net Lease (1) Operating Properties Total As of September 30, 2020 Land, at cost $ 188,418 $ 106,187 $ 294,605 Buildings and improvements, at cost 1,340,832 109,176 1,450,008 Less: accumulated depreciation (240,319) (17,199) (257,518) Real estate, net (1) 1,288,931 198,164 1,487,095 Real estate available and held for sale (2) — 5,519 5,519 Total real estate $ 1,288,931 $ 203,683 $ 1,492,614 As of December 31, 2019 Land, at cost $ 199,710 $ 106,187 $ 305,897 Buildings and improvements, at cost 1,347,321 107,861 1,455,182 Less: accumulated depreciation (219,949) (13,911) (233,860) Real estate, net (1) 1,327,082 200,137 1,527,219 Real estate available and held for sale (2) — 8,650 8,650 Total real estate $ 1,327,082 $ 208,787 $ 1,535,869 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, real estate, net included $760.4 million and $768.6 million, respectively, of real estate of the Net Lease Venture (refer to Net Lease Venture below). During the nine months ended September 30, 2020, the Company's largest net lease tenant contributed 11.9% of total revenues. |
Net Investment in Leases (Table
Net Investment in Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of net investment in leases | The Company's net investment in leases were comprised of the following as of September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 December 31, 2019 Total undiscounted cash flows $ 1,020,921 $ 1,042,019 Unguaranteed estimated residual value 345,815 340,620 Present value discount (935,206) (963,724) Allowance for losses on net investment in leases (11,113) — Net investment in leases (1) $ 420,417 $ 418,915 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, all of the Company's net investment in leases were current in their payment status and performing in accordance with the terms of the respective leases. As of September 30, 2020, the risk rating on the Company's net investment in leases was 2.0 (refer to Note 3). |
Schedule of future minimum lease payments to be collected under sales-type leases | Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, in effect as of September 30, 2020, are as follows by year ($ in thousands): Amount 2020 (remaining three months) $ — 2021 14,248 2022 30,481 2023 41,855 2024 41,584 Thereafter 892,753 Total undiscounted cash flows $ 1,020,921 |
Schedule of changes in allowance for losses on net investment in leases | Changes in the Company's allowance for losses on net investment in leases for the three and nine months ended September 30, 2020 were as follows ($ in thousands): Three Months Nine Months Reserve for losses on net investment in leases at beginning of period $ 10,937 $ — Initial allowance recorded upon adoption of new accounting standard (1) — 9,111 Provision for losses on net investment in leases (2) 176 2,002 Allowance for losses on net investment in leases at end of period $ 11,113 $ 11,113 _________________________________________________________ (1) The Company recorded an initial allowance for losses on net investment in leases of $9.1 million upon the adoption of ASU 2016-13 on January 1, 2020 (refer to Note 3). (2) During the three and nine months ended September 30, 2020, the Company recorded an allowance for losses on net investment in leases of $0.2 million and $2.0 million, respectively, primarily resulting from the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13 (refer to Note 3). |
Land and Development (Tables)
Land and Development (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Land And Development [Abstract] | |
Schedule of land and development assets | The Company's land and development assets were comprised of the following ($ in thousands): As of September 30, December 31, 2020 2019 Land and land development, at cost $ 499,231 $ 590,153 Less: accumulated depreciation (10,315) (9,608) Total land and development, net $ 488,916 $ 580,545 |
Loans Receivable and Other Le_2
Loans Receivable and Other Lending Investments, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of the company's loans and other lending investments by class | The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands): As of September 30, December 31, Construction loans Senior mortgages $ 467,774 $ 518,992 Corporate/Partnership loans 85,032 95,394 Subtotal - gross carrying value of construction loans (1) 552,806 614,386 Loans Senior mortgages 52,855 53,592 Corporate/Partnership loans 21,845 24,424 Subordinate mortgages 11,445 10,877 Subtotal - gross carrying value of loans 86,145 88,893 Other lending investments Financing receivables (refer to Note 5) 45,704 44,339 Held-to-maturity debt securities 89,234 84,981 Available-for-sale debt securities 24,631 23,896 Subtotal - other lending investments 159,569 153,216 Total gross carrying value of loans receivable and other lending investments 798,520 856,495 Allowance for loan losses (33,447) (28,634) Total loans receivable and other lending investments, net $ 765,073 $ 827,861 ____________________________________________________________ |
Schedule of changes in the company's allowance for loan losses | Changes in the Company's allowance for loan losses were as follows for the three months ended September 30, 2020 ($ in thousands): General Allowance Construction Loans Held to Financing Receivables Specific Total Allowance for loan losses at beginning of period $ 11,736 $ 905 $ 111 $ 1,159 $ 21,701 $ 35,612 (Recovery of) provision for loan losses (1) (2,598) (427) (56) 17 899 (2,165) Allowance for loan losses at end of period $ 9,138 $ 478 $ 55 $ 1,176 $ 22,600 $ 33,447 ____________________________________________________________ (1) During the three months ended September 30, 2020, the Company recorded a recovery of loan losses of $2.0 million in its consolidated statement of operations resulting from the reversal of CECL allowances on loans that repaid in full in the third quarter 2020 and a more favorable economic outlook on commercial real estate markets in the third quarter 2020 as compared to the second quarter 2020. Of this amount, $0.7 million related to a recovery of credit losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." Changes in the Company's allowance for loan losses were as follows for the nine months ended September 30, 2020 ($ in thousands): General Allowance Construction Loans Held to Financing Receivables Specific Total Allowance for loan losses at beginning of period $ 6,668 $ 265 $ — $ — $ 21,701 $ 28,634 Adoption of new accounting standard (1) (353) 98 20 964 — 729 Provision for loan losses (2) 2,823 115 35 212 899 4,084 Allowance for loan losses at end of period $ 9,138 $ 478 $ 55 $ 1,176 $ 22,600 $ 33,447 ____________________________________________________________ (1) On January 1, 2020, the Company recorded an increase to its allowance for loan losses of $3.3 million upon the adoption of ASU 2016-13 (refer to Note 3), of which $2.5 million related to expected credit losses for unfunded loan commitments and was recorded in "Accounts payable, accrued expenses and other liabilities." (2) During the nine months ended September 30, 2020, the Company recorded a provision for loan losses of $4.1 million in its consolidated statement of operations resulting from the macroeconomic impact of COVID-19 on commercial real estate markets, of which $0.9 million related to a recovery of credit losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." |
Schedule of recorded investment in loans and associated allowance for loan losses | The Company's investment in loans and other lending investments and the associated allowance for loan losses were as follows as of September 30, 2020 and December 31, 2019 ($ in thousands): Individually Evaluated for Impairment (1) Collectively Total As of September 30, 2020 Construction loans (2) $ 50,257 $ 502,549 $ 552,806 Loans (2) 37,020 49,125 86,145 Financing receivables — 45,704 45,704 Held-to-maturity debt securities — 89,234 89,234 Available-for-sale debt securities (3) — 24,631 24,631 Less: Allowance for loan losses (22,600) (10,847) (33,447) Total $ 64,677 $ 700,396 $ 765,073 As of December 31, 2019 Construction loans (2) $ — $ 614,386 $ 614,386 Loans (2) 37,820 51,073 88,893 Financing receivables — 44,339 44,339 Held-to-maturity debt securities — 84,981 84,981 Available-for-sale debt securities (3) — 23,896 23,896 Less: Allowance for loan losses (21,701) (6,933) (28,634) Total $ 16,119 $ 811,742 $ 827,861 _______________________________________________________________________________ (1) The carrying value of these loans includes an unamortized discount of $0.6 million and $0.1 million as of September 30, 2020 and December 31, 2019, respectively. The Company's loans individually evaluated for impairment represents two loans on non-accrual status and the unamortized amounts associated with these loans are not currently being amortized into income. (2) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.3 million and $0.7 million as of September 30, 2020 and December 31, 2019, respectively. |
Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating | The Company's amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, as of September 30, 2020 were as follows ($ in thousands): Year of Origination 2020 2019 2018 2017 2016 Prior to 2016 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — 123,519 — — — 123,519 3.0 — 13,296 106,465 144,011 41,931 4,130 309,833 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ 13,296 $ 229,984 $ 144,011 $ 41,931 $ 4,130 $ 433,352 Corporate/partnership loans Risk rating 1.0 $ — $ — $ 16,404 $ — $ — $ — $ 16,404 1.5 — — — — — — — 2.0 — — — — — — 2.5 — — — — — — — 3.0 — 1,504 25,194 — — — 26,698 3.5 — — — — — — — 4.0 — — 21,844 — 41,931 — 63,775 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ 1,504 $ 63,442 $ — $ 41,931 $ — $ 106,877 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 11,445 11,445 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 11,445 $ 11,445 Financing receivables Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — 45,704 — — — — 45,704 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ 45,704 $ — $ — $ — $ — $ 45,704 Total $ — $ 60,504 $ 293,426 $ 144,011 $ 83,862 $ 15,575 $ 597,378 ____________________________________________________________ |
Schedule of recorded investment in loans, aged by payment status and presented by class | The Company's amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Current Less Than Greater Than 90 Days (1) Total Total As of September 30, 2020 Senior mortgages $ 483,609 $ — $ 37,020 $ 37,020 $ 520,629 Corporate/Partnership loans 106,877 — — — 106,877 Subordinate mortgages 11,445 — — — 11,445 Total $ 601,931 $ — $ 37,020 $ 37,020 $ 638,951 As of December 31, 2019 Senior mortgages $ 534,765 $ — $ 37,820 $ 37,820 $ 572,585 Corporate/Partnership loans 119,818 — — — 119,818 Subordinate mortgages 10,877 — — — 10,877 Total $ 665,460 $ — $ 37,820 $ 37,820 $ 703,280 _______________________________________________________________________________ |
Schedule of recorded investment in impaired loans | The Company's impaired loans were as follows ($ in thousands): As of September 30, 2020 As of December 31, 2019 Amortized Unpaid Related Amortized Unpaid Related With an allowance recorded: Senior mortgages (1) $ 87,277 $ 86,627 $ (22,600) $ 37,820 $ 37,923 $ (21,701) Total $ 87,277 $ 86,627 $ (22,600) $ 37,820 $ 37,923 $ (21,701) ____________________________________________________________ (1) The Company has two non-accrual loans as of September 30, 2020 and one non-accrual loan as of December 31, 2019 that are considered impaired and included in the table above. The Company did not record any interest income on impaired loans for the three and nine months ended September 30, 2020 and 2019. |
Schedule of available-for-sale securities | Other lending investments includes the following securities ($ in thousands): Face Value Amortized Cost Basis Net Unrealized Gain Estimated Fair Value Net Carrying Value As of September 30, 2020 Available-for-Sale Securities Municipal debt securities $ 20,680 $ 20,680 $ 3,951 $ 24,631 $ 24,631 Held-to-Maturity Securities Debt securities 100,000 89,234 — 89,234 89,234 Total $ 120,680 $ 109,914 $ 3,951 $ 113,865 $ 113,865 As of December 31, 2019 Available-for-Sale Securities Municipal debt securities $ 21,140 $ 21,140 $ 2,756 $ 23,896 $ 23,896 Held-to-Maturity Securities Debt securities 100,000 84,981 — 84,981 84,981 Total $ 121,140 $ 106,121 $ 2,756 $ 108,877 $ 108,877 |
Schedule of held-to-maturity securities | Other lending investments includes the following securities ($ in thousands): Face Value Amortized Cost Basis Net Unrealized Gain Estimated Fair Value Net Carrying Value As of September 30, 2020 Available-for-Sale Securities Municipal debt securities $ 20,680 $ 20,680 $ 3,951 $ 24,631 $ 24,631 Held-to-Maturity Securities Debt securities 100,000 89,234 — 89,234 89,234 Total $ 120,680 $ 109,914 $ 3,951 $ 113,865 $ 113,865 As of December 31, 2019 Available-for-Sale Securities Municipal debt securities $ 21,140 $ 21,140 $ 2,756 $ 23,896 $ 23,896 Held-to-Maturity Securities Debt securities 100,000 84,981 — 84,981 84,981 Total $ 121,140 $ 106,121 $ 2,756 $ 108,877 $ 108,877 |
Schedule of contractual maturities of securities | As of September 30, 2020, the contractual maturities of the Company's securities were as follows ($ in thousands): Held-to-Maturity Debt Securities Available-for-Sale Debt Securities Amortized Cost Basis Estimated Fair Value Amortized Cost Basis Estimated Fair Value Maturities Within one year $ — $ — $ — $ — After one year through 5 years 89,234 89,234 — — After 5 years through 10 years — — — — After 10 years — — 20,680 24,631 Total $ 89,234 $ 89,234 $ 20,680 $ 24,631 |
Other Investments (Tables)
Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Schedule of other investments and proportionate share of earnings from equity method investments | The Company's other investments and its proportionate share of earnings (losses) from equity method investments were as follows ($ in thousands): Earnings (Losses) from Equity Method Investments (1) Carrying Value For the Three Months Ended September 30, For the Nine Months September 30, 2020 December 31, 2019 2020 2019 2020 2019 Real estate equity investments Safehold Inc. ("SAFE") (2) $ 855,925 $ 729,357 $ 9,331 $ 2,946 $ 36,905 $ 14,076 iStar Net Lease II LLC ("Net Lease Venture II") 103,276 30,712 811 (98) 1,568 (416) Other real estate equity investments 91,672 104,553 (3,542) 4,574 (10,517) 2,744 Subtotal 1,050,873 864,622 6,600 7,422 27,956 16,404 Other strategic investments (3) 72,220 43,253 205 195 (1,953) 162 Total $ 1,123,093 $ 907,875 $ 6,805 $ 7,617 $ 26,003 $ 16,566 ____________________________________________________________ (1) For the three months ended September 30, 2020 and 2019, earnings (losses) from equity method investments is net of the Company's pro rata share of $4.6 million and $3.5 million, respectively, of depreciation expense and $14.6 million and $8.2 million, respectively, of interest expense. For the nine months ended September 30, 2020 and 2019, earnings (losses) from equity method investments is net of the Company's pro rata share of $13.4 million and $10.7 million, respectively, of depreciation expense and $44.0 million and $21.6 million, respectively, of interest expense. (2) As of September 30, 2020, the Company owned 33.7 million shares of SAFE common stock which, based on the closing price of $62.10 on September 30, 2020, had a market value of $2.1 billion. For the nine months ended September 30, 2020, equity in earnings includes a dilution gain of $7.9 million resulting from a SAFE equity offering in March 2020. (3) During the three and nine months ended September 30, 2020, the Company identified observable price changes in an equity security held by the Company as evidenced by orderly private issuances of similar securities by the same issuer. In accordance with ASC 321, the Company remeasured its equity investment at fair value and recognized aggregate mark-to-market gains of $14.0 million and $23.9 million, respectively, in "Other income" in the Company's consolidated statements of operations. During the three and nine months ended September 30, 2019, equity in earnings (losses) includes $8.2 million of income resulting from the sale of a property at one of the Company's equity method investments. |
Schedule of summarized financial information | The following table presents the investee level summarized financial information of the Company's equity method investments that were significant as of September 30, 2020 ($ in thousands): Revenues Expenses Net Income Attributable to Parent For the Nine Months Ended September 30, 2020 SAFE $ 115,518 $ 73,821 $ 44,024 For the Nine Months Ended September 30, 2019 SAFE $ 63,810 $ 38,480 $ 16,574 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Assets and Other Liabilities [Abstract] | |
Schedule of deferred expenses and other assets, net | Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of September 30, 2020 December 31, 2019 Intangible assets, net (1) $ 158,976 $ 174,973 Restricted cash 47,787 45,034 Finance lease right-of-use assets (2) 144,097 145,209 Operating lease right-of-use assets (2) 50,371 34,063 Other assets (3) 21,114 17,534 Other receivables 16,997 16,846 Leasing costs, net (4) 2,830 3,793 Corporate furniture, fixtures and equipment, net (5) 2,204 2,736 Deferred financing fees, net 1,769 2,300 Deferred expenses and other assets, net $ 446,145 $ 442,488 _______________________________________________________________________________ (1) Intangible assets, net includes above market and in-place lease assets and lease incentives related to the acquisition of real estate assets. Accumulated amortization on intangible assets, net was $42.2 million and $33.4 million as of September 30, 2020 and December 31, 2019, respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.3 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and $1.0 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $2.6 million and $2.4 million for the three months ended September 30, 2020 and 2019, respectively, and $7.9 million and $6.9 million for the nine months ended September 30, 2020 and 2019, respectively. These amounts are included in "Depreciation and amortization" in the Company's consolidated statements of operations. As of September 30, 2020, the weighted average amortization period for the Company's intangible assets was approximately 16.9 years. (2) Right-of-use lease assets relate primarily to the Company's leases of office space and certain of its ground leases. Right-of use lease assets initially equal the lease liability. The lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the rate implicit in the lease or the Company's incremental secured borrowing rate for similar collateral. For operating leases, lease liabilities were discounted at the Company's weighted average incremental secured borrowing rate for similar collateral estimated to be 5.1% and the weighted average lease term is 8.5 years. For finance leases, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average lease term is 97.2 years. Right-of-use assets for finance leases are amortized on a straight-line basis over the term of the lease and are recorded in "Depreciation and amortization" in the Company's consolidated statements of operations. During the three months ended September 30, 2020 and 2019, the Company recognized $2.0 million and $1.7 million, respectively, in "Interest expense" and $0.4 million and $0.3 million, respectively, in "Depreciation and amortization" in its consolidated statement of operations relating to finance leases. During the nine months ended September 30, 2020 and 2019, the Company recognized $6.1 million and $3.0 million, respectively, in "Interest expense" and $1.1 million and $0.5 million, respectively, in "Depreciation and amortization" in its consolidated statement of operations relating to finance leases. For operating leases, rent expense is recognized on a straight-line basis over the term of the lease and is recorded in "General and administrative" and "Real estate expense" in the Company's consolidated statements of operations. During the three months ended September 30, 2020 and 2019, the Company recognized $1.2 million and $0.9 million, respectively, in "General and administrative" and $0.9 million and $0.9 million, respectively, in "Real estate expense" in its consolidated statement of operations relating to operating leases. During the nine months ended September 30, 2020 and 2019, the Company recognized $3.4 million and $2.8 million, respectively, in "General and administrative" and $2.6 million and $2.6 million, respectively, in "Real estate expense" in its consolidated statement of operations relating to operating leases. (3) Other assets primarily includes prepaid expenses and deposits for certain real estate assets. (4) Accumulated amortization of leasing costs was $2.5 million and $3.3 million as of September 30, 2020 and December 31, 2019, respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $14.0 million and $13.1 million as of September 30, 2020 and December 31, 2019, respectively. |
Schedule of accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of September 30, 2020 December 31, 2019 Other liabilities (1) $ 81,422 81,709 Accrued expenses 84,742 83,778 Finance lease liabilities (see table above) 149,823 147,749 Intangible liabilities, net (2) 49,361 51,223 Operating lease liabilities (see table above) 51,223 34,182 Accrued interest payable 28,385 25,733 Accounts payable, accrued expenses and other liabilities $ 444,956 $ 424,374 _______________________________________________________________________________ (1) As of September 30, 2020 and December 31, 2019, other liabilities includes $26.8 million and $27.5 million, respectively, of deferred income. As of September 30, 2020 and December 31, 2019, other liabilities includes $20.8 million and $8.7 million, respectively, of derivative liabilities. As of September 30, 2020, other liabilities includes $1.7 million of expected credit losses for unfunded loan commitments. (2) Intangible liabilities, net includes below market lease liabilities related to the acquisition of real estate assets. Accumulated amortization on below market lease liabilities was $6.9 million and $5.0 million as of September 30, 2020 and December 31, 2019, respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.6 million and $0.7 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million and $1.8 million for the nine months ended September 30, 2020 and 2019, respectively. |
Loan Participations Payable, _2
Loan Participations Payable, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of loan participations payable | The Company's loan participations payable, net were as follows ($ in thousands): Carrying Value as of September 30, 2020 December 31, 2019 Loan participations payable (1) $ 41,941 $ 35,656 Debt premiums, discounts and deferred financing costs, net (10) (18) Total loan participations payable, net $ 41,931 $ 35,638 _______________________________________________________________________________ |
Debt Obligations, net (Tables)
Debt Obligations, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The Company's debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled September 30, 2020 December 31, 2019 Secured credit facilities and mortgages: Revolving Credit Facility $ 20,000 $ — LIBOR + 2.00% (1) September 2022 Senior Term Loan 491,875 491,875 LIBOR + 2.75% (2) June 2023 Mortgages collateralized by net lease assets (3) 724,836 721,118 1.70% - 7.26% (3) Total secured credit facilities and mortgages 1,236,711 1,212,993 Unsecured notes: 6.00% senior notes (4) — 110,545 6.00% — 5.25% senior notes (5) — 400,000 5.25% — 3.125% senior convertible notes (6) 287,500 287,500 3.125% September 2022 4.75% senior notes (7) 775,000 775,000 4.75% October 2024 4.25% senior notes (8) 550,000 550,000 4.25% August 2025 5.50% senior notes (9) 400,000 — 5.50% February 2026 Total unsecured notes 2,012,500 2,123,045 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50% October 2035 Total debt obligations 3,349,211 3,436,038 Debt discounts and deferred financing costs, net (41,528) (48,958) Total debt obligations, net (10) $ 3,307,683 $ 3,387,080 _______________________________________________________________________________ (1) The Revolving Credit Facility bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.00% to 1.50%; or (ii) LIBOR subject to a margin ranging from 2.00% to 2.50%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023. (2) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.0% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%. (3) As of September 30, 2020, the weighted average interest rate of these loans is 4.4%, inclusive of the effect of interest rate swaps. (4) The Company repaid these senior notes in January 2020. (5) The Company repaid these senior notes in September 2020. (6) The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of September 30, 2020 was 69.7134 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $14.34 per share. The conversion rate is subject to adjustment from time to time for specified events. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. At issuance in September 2017, the Company valued the liability component at $221.8 million, net of fees, and the equity component of the conversion feature at $22.5 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the liability component at $34.0 million, net of fees, and the equity component of the conversion feature at $3.4 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of September 30, 2020, the carrying value of the 3.125% Convertible Notes was $273.5 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $11.6 million, net of fees. As of December 31, 2019, the carrying value of the 3.125% Convertible Notes was $268.7 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $15.5 million, net of fees. During the three months ended September 30, 2020 and 2019, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and $1.3 million and $1.3 million, respectively, of discount amortization on the 3.125% Convertible Notes. During the nine months ended September 30, 2020 and 2019, the Company recognized $6.7 million and $6.7 million, respectively, of contractual interest and $3.9 million and $3.7 million, respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2%. (7) The Company can prepay these senior notes without penalty beginning July 1, 2024. (8) The Company can prepay these senior notes without penalty beginning May 1, 2025. (9) The Company can prepay these senior notes without penalty beginning August 15, 2024. (10) The Company capitalized interest relating to development activities of $0.5 million and $0.5 million during the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $6.9 million during the nine months ended September 30, 2020 and 2019, respectively. |
Schedule of future scheduled maturities of outstanding debt obligations | As of September 30, 2020, future scheduled maturities of outstanding debt obligations are as follows ($ in thousands): Unsecured Debt Secured Debt Total 2020 (remaining three months) $ — $ — $ — 2021 — 156,891 156,891 2022 287,500 67,074 354,574 2023 — 491,875 491,875 2024 775,000 — 775,000 Thereafter 1,050,000 520,871 1,570,871 Total principal maturities 2,112,500 1,236,711 3,349,211 Unamortized discounts and deferred financing costs, net (35,081) (6,447) (41,528) Total debt obligations, net $ 2,077,419 $ 1,230,264 $ 3,307,683 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of unfunded commitments | As of September 30, 2020, the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands): Loans and Other Lending Investments (1) Real Estate Other Total Performance-Based Commitments $ 83,423 $ 14,726 $ 27,902 $ 126,051 Strategic Investments — — 9,967 9,967 Total $ 83,423 $ 14,726 $ 37,869 $ 136,018 _______________________________________________________________________________ (1) Excludes $8.0 million of commitments on loan participations sold that are not the obligation of the Company. |
Schedule of future minimum lease obligations - operating leases | Future minimum lease obligations under operating and finance leases as of September 30, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 (remaining three months) $ 1,065 $ 1,357 2021 3,797 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 Thereafter 6,793 1,573,773 Total undiscounted cash flows 31,113 1,597,774 Present value discount (1) (4,103) (1,447,951) Other adjustments (2) 24,213 — Lease liabilities $ 51,223 $ 149,823 _______________________________________________________________________________ (1) During the three months ended September 30, 2020 and 2019, the Company made payments of $1.0 million and $1.0 million, respectively, related to its operating leases and $1.4 million and $1.1 million, respectively, related to its finance leases. During the nine months ended September 30, 2020 and 2019, the Company made payments of $3.2 million and $3.0 million, respectively, related to its operating leases and $4.0 million and $2.0 million, respectively, related to its finance leases. The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 5.8 years and the weighted average discount rate was 5.0%. The weighted average lease term for the Company's finance leases was 97.2 years and the weighted average discount rate was 5.5%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2019 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 $ 4,167 $ 5,386 2021 1,803 5,494 2022 1,098 5,604 2023 728 5,716 2024 617 5,830 Thereafter 1,447 1,573,824 Total undiscounted cash flows 9,860 1,601,854 Present value discount (1) (1,057) (1,454,105) Other adjustments (2) 25,379 — Lease liabilities $ 34,182 $ 147,749 _______________________________________________________________________________ (1) The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 4.2 years and the weighted average discount rate was 5.6%. The weighted average lease term for the Company's finance leases was 93 years and the weighted average discount rate was 5.4%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. |
Schedule of future minimum lease obligations - finance leases | Future minimum lease obligations under operating and finance leases as of September 30, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 (remaining three months) $ 1,065 $ 1,357 2021 3,797 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 Thereafter 6,793 1,573,773 Total undiscounted cash flows 31,113 1,597,774 Present value discount (1) (4,103) (1,447,951) Other adjustments (2) 24,213 — Lease liabilities $ 51,223 $ 149,823 _______________________________________________________________________________ (1) During the three months ended September 30, 2020 and 2019, the Company made payments of $1.0 million and $1.0 million, respectively, related to its operating leases and $1.4 million and $1.1 million, respectively, related to its finance leases. During the nine months ended September 30, 2020 and 2019, the Company made payments of $3.2 million and $3.0 million, respectively, related to its operating leases and $4.0 million and $2.0 million, respectively, related to its finance leases. The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 5.8 years and the weighted average discount rate was 5.0%. The weighted average lease term for the Company's finance leases was 97.2 years and the weighted average discount rate was 5.5%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2019 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2020 $ 4,167 $ 5,386 2021 1,803 5,494 2022 1,098 5,604 2023 728 5,716 2024 617 5,830 Thereafter 1,447 1,573,824 Total undiscounted cash flows 9,860 1,601,854 Present value discount (1) (1,057) (1,454,105) Other adjustments (2) 25,379 — Lease liabilities $ 34,182 $ 147,749 _______________________________________________________________________________ (1) The weighted average lease term for the Company's operating leases, excluding operating leases for which the Company's tenants pay rent on its behalf, was 4.2 years and the weighted average discount rate was 5.6%. The weighted average lease term for the Company's finance leases was 93 years and the weighted average discount rate was 5.4%. (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company's tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company's tenants on its behalf. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative financial instruments on consolidated balance sheet | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2020 and December 31, 2019 ($ in thousands): (1) Derivative Assets Derivative Liabilities As of September 30, 2020 Balance Sheet Fair Balance Sheet Fair Derivatives Designated in Hedging Relationships Interest rate swaps Deferred expenses and other assets, net $ — Accounts payable, accrued expenses and other liabilities $ 20,818 Total $ — $ 20,818 Derivative Assets Derivative Liabilities As of December 31, 2019 Balance Sheet Fair Balance Sheet Fair Derivatives Designated in Hedging Relationships Interest rate swaps Deferred expenses and other assets, net $ 114 Accounts payable, accrued expenses and other liabilities $ 8,680 Total $ 114 $ 8,680 _________________________________________________________ |
Schedule of derivative financial instruments on consolidated statements of operations and comprehensive income | The tables below present the effect of the Company's derivative financial instruments, including the Company's share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Derivatives Designated in Hedging Relationships Location of Gain (Loss) Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings For the Three Months Ended September 30, 2020 Interest rate swaps Earnings from equity method investments $ 598 $ (333) Interest rate swaps Interest expense (401) (2,038) For the Three Months Ended September 30, 2019 Interest rate swaps Interest Expense (3,009) (539) Interest rate swaps Earnings from equity method investments (6,082) (126) For the Nine Months Ended September 30, 2020 Interest rate swaps Earnings from equity method investments (15,559) (866) Interest rate swaps Interest expense (15,371) (4,926) For the Nine Months Ended September 30, 2019 Interest rate swaps Interest Expense (23,781) (957) Interest rate swaps Earnings from equity method investments (21,309) 28 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of cumulative redeemable preferred stock outstanding by series | The Company had the following series of Cumulative Redeemable Preferred Stock outstanding as of September 30, 2020 and December 31, 2019: Cumulative Preferential Cash Dividends (1)(2) Series Shares Issued and Par Value Liquidation Preference (3) Rate per Annum Annual Carrying Value D 4,000 $ 0.001 $ 25.00 8.00 % $ 2.00 $ 89,041 G 3,200 0.001 25.00 7.65 % 1.91 72,664 I 5,000 0.001 25.00 7.50 % 1.88 120,785 Total 12,200 $ 282,490 ________________________________________ (1) Holders of shares of the Series D, G and I preferred stock are entitled to receive dividends, when and as declared by the Company's Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360-day year consisting of twelve (2) The Company declared and paid dividends of $6.0 million, $4.6 million and $7.0 million on its Series D, G and I Cumulative Redeemable Preferred Stock during both the nine months ended September 30, 2020 and 2019. The Company declared and paid dividends of $6.8 million on its Series J Convertible Perpetual Preferred Stock during the nine months ended September 30, 2019. The character of the 2019 dividends was 100% capital gain distribution, of which 34.01% represented unrecaptured section 1250 gain. There are no dividend arrearages on any of the preferred shares currently outstanding. (3) The Company may, at its option, redeem the Series G and I Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. |
Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity | "Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands): As of September 30, 2020 December 31, 2019 Unrealized gains on available-for-sale securities $ 3,951 $ 2,756 Unrealized losses on cash flow hedges (56,863) (37,264) Unrealized losses on cumulative translation adjustment (4,199) (4,199) Accumulated other comprehensive loss $ (57,111) $ (38,707) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of performance incentive plans | The following is a summary of the status of the Company’s liability-classified iPIP plans and changes during the nine months ended September 30, 2020. iPIP Investment Pool 2013-2014 2015-2016 2017-2018 Points at beginning of period 81.17 73.28 77.27 Forfeited (1.00) (2.88) (3.93) Points at end of period 80.17 70.40 73.34 |
Schedule of restricted stock units activity | A summary of the Company’s stock-based compensation awards to certain employees in the form of long-term incentive awards for the nine months ended September 30, 2020, is as follows (in thousands): Nonvested at beginning of period 598 Granted 181 Vested (109) Nonvested at end of period 670 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of income (loss) from continuing operations used in the basic and diluted EPS calculations | The following table presents a reconciliation of income from operations used in the basic and diluted earnings per share ("EPS") calculations ($ in thousands, except for per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Net income (loss) $ 6,451 $ 3,626 $ (20,793) $ 370,347 Net income attributable to noncontrolling interests (2,646) (2,845) (8,435) (8,168) Preferred dividends (5,874) (8,124) (17,622) (24,372) Net income (loss) allocable to common shareholders for basic earnings per common share $ (2,069) $ (7,343) $ (46,850) $ 337,807 Add: Effect of Series J convertible perpetual preferred stock — — — 6,750 Net income (loss) allocable to common shareholders for diluted earnings per common share $ (2,069) $ (7,343) $ (46,850) $ 344,557 |
Schedule of earnings per share allocable to common shares and HPU shares | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Earnings allocable to common shares: Numerator for basic earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ (2,069) $ (7,343) $ (46,850) $ 337,807 Numerator for diluted earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ (2,069) $ (7,343) $ (46,850) $ 344,557 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 75,033 62,168 76,232 64,624 Add: Effect of assumed shares issued under treasury stock method for restricted stock units — — — 114 Add: Effect of series J convertible perpetual preferred stock — — — 16,138 Weighted average common shares outstanding for diluted earnings per common share 75,033 62,168 76,232 80,876 Basic earnings per common share: Net income (loss) allocable to common shareholders $ (0.03) $ (0.12) $ (0.61) $ 5.23 Diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ (0.03) $ (0.12) $ (0.61) $ 4.26 ____________________________________________________________ |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis | The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands): Fair Value Using Total Quoted market Significant other Significant As of September 30, 2020 Recurring basis: Derivative liabilities (1) $ 20,818 $ — $ 20,818 $ — Available-for-sale securities (1) 24,631 — — 24,631 Non-recurring basis: Other investments (2) 62,961 — 62,961 — As of December 31, 2019 Recurring basis: Derivative assets (1) $ 114 $ — $ 114 $ — Derivative liabilities (1) 8,680 — 8,680 — Available-for-sale securities (1) 23,896 — — 23,896 Non-recurring basis: Impaired land and development (3) 40,000 — — 40,000 ____________________________________________________________ (1) The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3. (2) During the three months ended September 30, 2020, the Company identified an observable price change in an equity security held by the Company as evidenced by an orderly private issuance of similar securities by the same issuer and, as such, classified such observable price change as Level 2. (3) The Company recorded aggregate impairments of $5.3 million on two land and development assets with an estimated aggregate fair value of $40.0 million. The estimated fair values are based on expected sales proceeds. |
Summary of changes in Level 3 available-for-sale securities reported at fair value | The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the nine months ended September 30, 2020 and 2019 ($ in thousands): 2020 2019 Beginning balance $ 23,896 $ 21,661 Repayments (460) (45) Unrealized gains recorded in other comprehensive income 1,195 2,486 Ending balance $ 24,631 $ 24,102 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial measures for each segment based on which performance is evaluated | The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands): Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total Three Months Ended September 30, 2020: Operating lease income $ 41,144 $ — $ 5,137 $ 89 $ — $ 46,370 Interest income 911 13,359 — — — 14,270 Interest income from sales-type leases 8,360 — — — — 8,360 Other income 4,554 104 2,956 3,831 14,107 25,552 Land development revenue — — — 20,502 — 20,502 Earnings (losses) from equity method investments 10,141 — (4,134) 592 206 6,805 Income from sales of real estate 6,055 — — — — 6,055 Total revenue and other earnings 71,165 13,463 3,959 25,014 14,313 127,914 Real estate expense (7,136) — (4,428) (5,371) — (16,935) Land development cost of sales — — — (21,358) — (21,358) Other expense — (37) — — (36) (73) Allocated interest expense (26,049) (5,831) (2,289) (4,606) (3,632) (42,407) Allocated general and administrative (2) (5,161) (1,451) (582) (2,320) (4,693) (14,207) Segment profit (loss) (3) $ 32,819 $ 6,144 $ (3,340) $ (8,641) $ 5,952 $ 32,934 Other significant items: Provision for (recovery of) loan losses $ 19 $ (1,995) $ — $ — $ — $ (1,976) Provision for losses on net investment in leases 175 — — — — 175 Depreciation and amortization 12,781 — 1,287 243 310 14,621 Capitalized expenditures 1,896 — 84 5,170 — 7,150 Three Months Ended September 30, 2019: Operating lease income $ 38,006 $ — $ 6,034 $ 70 $ — $ 44,110 Interest income 789 18,912 — — — 19,701 Interest income from sales-type leases 8,339 — — — — 8,339 Other income 6,347 115 7,611 2,124 2,073 18,270 Land development revenue — — — 54,918 — 54,918 Earnings (losses) from equity method investments 2,848 — 4,875 (301) 195 7,617 Income from sales of real estate 3,458 — 18 — — 3,476 Total revenue and other earnings 59,787 19,027 18,538 56,811 2,268 156,431 Real estate expense (6,460) — (9,314) (7,413) — (23,187) Land development cost of sales — — — (48,101) — (48,101) Other expense — (49) — — (358) (407) Allocated interest expense (25,176) (6,902) (2,393) (5,268) (6,783) (46,522) Allocated general and administrative (2) (6,887) (2,035) (727) (3,019) (4,702) (17,370) Segment profit (loss) (3) $ 21,264 $ 10,041 $ 6,104 $ (6,990) $ (9,575) $ 20,844 Other significant items: Recovery of loan losses $ — $ (3,805) $ — $ — $ — $ (3,805) Depreciation and amortization 12,409 — 1,244 243 303 14,199 Capitalized expenditures 7,846 — 2,816 20,536 — 31,198 Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total Nine Months Ended September 30, 2020: Operating lease income $ 124,109 $ — $ 16,153 $ 267 $ — $ 140,529 Interest income 2,594 44,331 — — — 46,925 Interest income from sales-type leases 25,010 — — — — 25,010 Other income 13,468 4,249 6,605 5,558 26,332 56,212 Land development revenue — — — 116,254 — 116,254 Earnings (losses) from equity method investments 38,472 — (11,741) 1,225 (1,953) 26,003 Income from sales of real estate 6,056 — 62 — — 6,118 Total revenue and other earnings 209,709 48,580 11,079 123,304 24,379 417,051 Real estate expense (19,497) — (16,600) (17,611) — (53,708) Land development cost of sales — — — (114,704) — (114,704) Other expense — (80) — — (271) (351) Allocated interest expense (74,915) (17,989) (6,731) (13,598) (14,515) (127,748) Allocated general and administrative (2) (17,327) (5,123) (1,966) (7,524) (14,523) (46,463) Segment profit (loss) (3) $ 97,970 $ 25,388 $ (14,218) $ (30,133) $ (4,930) $ 74,077 Other significant non-cash items: Provision for loan losses $ 212 $ 3,881 $ — $ — $ — $ 4,093 Provision for losses on net investment in leases 2,001 — — — — 2,001 Impairment of assets 2,036 — 2,983 1,472 — 6,491 Depreciation and amortization 37,924 — 3,843 729 911 43,407 Capitalized expenditures 8,913 — 1,421 25,222 — 35,556 Nine Months Ended September 30, 2019: Operating lease income $ 136,150 $ — $ 21,844 $ 216 $ — $ 158,210 Interest income 1,197 59,220 — — — 60,417 Interest income from sales-type leases 12,157 — — — — 12,157 Other income 12,705 2,836 13,960 6,877 6,755 43,133 Land development revenue — — — 76,691 — 76,691 Earnings (losses) from equity method investments 13,660 — (166) 2,910 162 16,566 Selling profit from sales-type leases 180,416 — — — — 180,416 Income from sales of real estate 223,200 — 10,206 — — 233,406 Total revenue and other earnings 579,485 62,056 45,844 86,694 6,917 780,996 Real estate expense (18,335) — (28,646) (24,184) — (71,165) Land development cost of sales — — — (71,785) — (71,785) Other expense — (359) — — (12,439) (12,798) Allocated interest expense (70,548) (23,251) (7,859) (15,888) (19,305) (136,851) Allocated general and administrative (2) (19,299) (6,523) (2,214) (9,199) (14,583) (51,818) Segment profit (loss) (3) $ 471,303 $ 31,923 $ 7,125 $ (34,362) $ (39,410) $ 436,579 Other significant non-cash items: Recovery of loan losses $ — $ (3,792) $ — $ — $ — $ (3,792) Impairment of assets — — 3,853 1,100 — 4,953 Depreciation and amortization 38,242 — 3,701 733 910 43,586 Capitalized expenditures 12,707 — 4,878 86,029 — 103,614 Net Real Estate Finance Operating Properties Land and Development Corporate/Other (1) Company Total As of September 30, 2020 Real estate, net $ 1,288,931 $ — $ 198,164 $ — $ — $ 1,487,095 Real estate available and held for sale — — 5,519 — — 5,519 Total real estate 1,288,931 — 203,683 — — 1,492,614 Net investment in leases 420,417 — — — — 420,417 Land and development, net — — — 488,916 — 488,916 Loans receivable and other lending investments, net 44,528 720,545 — — — 765,073 Other investments 959,201 — 61,315 30,357 72,220 1,123,093 Total portfolio assets $ 2,713,077 $ 720,545 $ 264,998 $ 519,273 $ 72,220 4,290,113 Cash and other assets 598,010 Total assets $ 4,888,123 As of December 31, 2019 Real estate, net $ 1,327,082 $ — $ 200,137 $ — $ — $ 1,527,219 Real estate available and held for sale — — 8,650 — — 8,650 Total real estate 1,327,082 — 208,787 — — 1,535,869 Net investment in leases 418,915 — — — — 418,915 Land and development, net — — — 580,545 — 580,545 Loans receivable and other lending investments, net 44,339 783,522 — — — 827,861 Other investments 760,068 — 61,686 42,866 43,255 907,875 Total portfolio assets $ 2,550,404 $ 783,522 $ 270,473 $ 623,411 $ 43,255 4,271,065 Cash and other assets 814,044 Total assets $ 5,085,109 _______________________________________________________________________________ (1) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above. (2) General and administrative excludes stock-based compensation expense of $5.7 million and $26.7 million for the three and nine months ended September 30, 2020, respectively, and $6.7 million and $20.7 million for the three and nine months ended September 30, 2019, respectively. (3) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Segment profit $ 32,934 $ 20,844 $ 74,077 $ 436,579 Less: Recovery of (provision for) loan losses 1,976 3,805 (4,093) 3,792 Less: Provision for losses on net investment in leases (175) — (2,001) — Less: Impairment of assets — — (6,491) (4,953) Less: Stock-based compensation expense (5,661) (6,740) (26,675) (20,694) Less: Depreciation and amortization (14,621) (14,199) (43,407) (43,586) Less: Income tax expense (78) (84) (165) (323) Less: Loss on early extinguishment of debt, net (7,924) — (12,038) (468) Net income (loss) $ 6,451 $ 3,626 $ (20,793) $ 370,347 |
Schedule of reconciliation of segment profit to income (loss) | The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Segment profit $ 32,934 $ 20,844 $ 74,077 $ 436,579 Less: Recovery of (provision for) loan losses 1,976 3,805 (4,093) 3,792 Less: Provision for losses on net investment in leases (175) — (2,001) — Less: Impairment of assets — — (6,491) (4,953) Less: Stock-based compensation expense (5,661) (6,740) (26,675) (20,694) Less: Depreciation and amortization (14,621) (14,199) (43,407) (43,586) Less: Income tax expense (78) (84) (165) (323) Less: Loss on early extinguishment of debt, net (7,924) — (12,038) (468) Net income (loss) $ 6,451 $ 3,626 $ (20,793) $ 370,347 |
Business and Organization (Deta
Business and Organization (Details) $ in Billions | Sep. 30, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment across a range of real estate sectors over the past two decades (more than) | $ 40 |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Real estate | ||
Real estate, at cost | $ 1,744,613 | $ 1,761,079 |
Less: accumulated depreciation | (257,518) | (233,860) |
Real estate, net | 1,487,095 | 1,527,219 |
Land and development, net | 488,916 | 580,545 |
Other investments | 1,123,093 | 907,875 |
Cash and cash equivalents | 88,187 | 307,172 |
Accrued interest and operating lease income receivable, net | 8,053 | 10,162 |
Deferred operating lease income receivable, net | 55,625 | 54,222 |
Deferred expenses and other assets, net | 446,145 | 442,488 |
Total assets | 4,888,123 | 5,085,109 |
LIABILITIES | ||
Accounts payable, accrued expenses and other liabilities | 444,956 | 424,374 |
Debt obligations, net | 3,307,683 | 3,387,080 |
Total liabilities | 3,794,675 | 3,847,149 |
Consolidated VIEs | ||
Real estate | ||
Real estate, at cost | 898,733 | 891,000 |
Less: accumulated depreciation | (55,785) | (37,542) |
Real estate, net | 842,948 | 853,458 |
Land and development, net | 249,585 | 273,617 |
Other investments | 39 | 45 |
Cash and cash equivalents | 29,933 | 19,112 |
Accrued interest and operating lease income receivable, net | 1,154 | 1,208 |
Deferred operating lease income receivable, net | 26,998 | 19,547 |
Deferred expenses and other assets, net | 126,573 | 134,117 |
Total assets | 1,277,230 | 1,301,104 |
LIABILITIES | ||
Accounts payable, accrued expenses and other liabilities | 118,786 | 107,455 |
Debt obligations, net | 490,987 | 482,918 |
Total liabilities | 609,773 | $ 590,373 |
Unconsolidated VIEs | ||
LIABILITIES | ||
Carrying value of the investments | 140,500 | |
Variable interest entity unfunded commitment | $ 10,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to reserves for loan losses | $ 1,700 | |||
Allowance for losses on net investment in leases at end of period | 11,113 | $ 10,937 | $ 0 | |
Accrued interest | $ 3,600 | $ 4,200 | ||
ASU 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to reserves for loan losses | $ 3,300 | |||
Allowance for losses on net investment in leases at end of period | $ 9,100 |
Real Estate - Schedule of Real
Real Estate - Schedule of Real Estate Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Real Estate Properties [Line Items] | ||
Land, at cost | $ 294,605 | $ 305,897 |
Buildings and improvements, at cost | 1,450,008 | 1,455,182 |
Less: accumulated depreciation | (257,518) | (233,860) |
Real estate, net | 1,487,095 | 1,527,219 |
Real estate available and held for sale | 5,519 | 8,650 |
Total real estate | 1,492,614 | 1,535,869 |
Net Lease | ||
Real Estate Properties [Line Items] | ||
Land, at cost | 188,418 | 199,710 |
Buildings and improvements, at cost | 1,340,832 | 1,347,321 |
Less: accumulated depreciation | (240,319) | (219,949) |
Real estate, net | 1,288,931 | 1,327,082 |
Real estate available and held for sale | 0 | 0 |
Total real estate | $ 1,288,931 | 1,327,082 |
Net Lease | Revenue Benchmark | Customer Concentration Risk | ||
Real Estate Properties [Line Items] | ||
Percentage of revenues attributable to largest net lease tenant | 11.90% | |
Net Lease | Net Lease Venture | ||
Real Estate Properties [Line Items] | ||
Real estate, net | $ 760,400 | 768,600 |
Operating Properties | ||
Real Estate Properties [Line Items] | ||
Land, at cost | 106,187 | 106,187 |
Buildings and improvements, at cost | 109,176 | 107,861 |
Less: accumulated depreciation | (17,199) | (13,911) |
Real estate, net | 198,164 | 200,137 |
Real estate available and held for sale | 5,519 | 8,650 |
Total real estate | 203,683 | 208,787 |
Residential Condominiums | ||
Real Estate Properties [Line Items] | ||
Real estate available and held for sale | $ 5,500 | $ 8,600 |
Real Estate - Net Lease Venture
Real Estate - Net Lease Venture (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 50.00% | 50.00% | ||
Equity method investment, partner ownership percentage | 47.50% | 47.50% | ||
Revenues | $ 115,054 | $ 145,338 | $ 384,930 | $ 350,608 |
Net Lease Venture | Management Fees | Other income | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 400 | $ 400 | $ 1,100 | $ 1,100 |
Net Lease Venture | Net Lease | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 51.90% | 51.90% | ||
Equity method investment, related party ownership percentage | 0.60% | 0.60% | ||
Equity method investment, related party promote fee percentage | 50.00% | 50.00% |
Real Estate - Acquisitions (Det
Real Estate - Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Jun. 30, 2020 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Properties [Line Items] | ||||||
Acquisitions of real estate assets | $ 56,700 | $ 0 | $ 240,487 | |||
SAFE | ||||||
Real Estate Properties [Line Items] | ||||||
Ground lease term (in years) | 99 years | 99 years | 98 years | 99 years | ||
Net Lease Asset | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions of real estate assets | $ 11,500 | |||||
Leasehold Interest | SAFE | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions of real estate assets | 98,200 | |||||
Net Lease Asset Two | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions of real estate assets | $ 110,600 |
Real Estate - Dispositions (Det
Real Estate - Dispositions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate [Line Items] | ||||
Net proceeds from sales of real estate | $ 42,684 | $ 307,493 | ||
Impairment of assets | $ 0 | $ 0 | 6,491 | 4,953 |
Income from sales of real estate | $ 6,055 | $ 3,476 | 6,118 | 233,406 |
Net Lease | ||||
Real Estate [Line Items] | ||||
Net proceeds from sales of real estate | 7,500 | |||
Impairment of assets | $ 1,700 | |||
Carrying value of property sold | 220,400 | |||
Income from sales of real estate | 219,700 | |||
Non-recourse mortgage assumed by buyer | 228,000 | |||
Operating Properties | ||||
Real Estate [Line Items] | ||||
Carrying value of property sold | 69,900 | |||
Income from sales of real estate | $ 10,200 |
Real Estate - Real Estate Avail
Real Estate - Real Estate Available and Held for Sale (Details) $ in Millions | Sep. 30, 2020USD ($) |
Net Lease | |
Real Estate Properties [Line Items] | |
Real estate asset transferred to held for sale | $ 25.7 |
Real Estate - Impairments (Deta
Real Estate - Impairments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Properties [Line Items] | ||
Impairment of real estate | $ 3 | $ 3.3 |
Impairment in connection with sale of residential condominium units | $ 0.6 | |
Net Lease | ||
Real Estate Properties [Line Items] | ||
Impairment of real estate | $ 1.7 |
Real Estate - Tenant Reimbursem
Real Estate - Tenant Reimbursements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate [Abstract] | ||||
Tenant expense reimbursements | $ 5.8 | $ 4.9 | $ 17.1 | $ 14.8 |
Real Estate - Allowance for Dou
Real Estate - Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Real Estate Tenant Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts receivable | $ 2.1 | $ 1 |
Deferred Operating Lease | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts receivable | $ 1 |
Net Investment in Leases - Narr
Net Investment in Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2019USD ($)property | Sep. 30, 2020USD ($)lease | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Net investment in leases [Line Items] | |||||||
Payments to acquire real estate assets | $ 56,700 | $ 0 | $ 240,487 | ||||
Number of properties acquired from lessee | property | 7 | ||||||
Purchase price for properties acquired from lessee | $ 44,100 | ||||||
Extension of existing master net leases (in years) | 15 years | ||||||
Net proceeds from sale of lessee's facilities | $ 10,000 | ||||||
Term of rent deferral granted for lessee | 9 months | ||||||
Number of master leases | lease | 2 | ||||||
Net investment in leases | $ 424,100 | $ 420,417 | 420,417 | $ 418,915 | |||
Selling profit from sales-type leases | 0 | $ 0 | 0 | 180,416 | |||
Cash interest income from sales-type leases | 1,500 | 6,900 | 10,700 | 10,100 | |||
Noncash interest income from sales-type leases | 6,900 | $ 1,400 | $ 14,300 | $ 2,100 | |||
Bowling Entertainment Venue Operator | |||||||
Net investment in leases [Line Items] | |||||||
Number of bowling centers acquired | property | 9 | ||||||
Bowling Entertainment Venue Operator | Bowling Center Commitment | |||||||
Net investment in leases [Line Items] | |||||||
Commitment to invest additional bowling centers | $ 55,000 |
Net Investment in Leases - Net
Net Investment in Leases - Net Investment in Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | May 31, 2019 |
Leases [Abstract] | ||||
Total undiscounted cash flows | $ 1,020,921 | $ 1,042,019 | ||
Unguaranteed estimated residual value | 345,815 | 340,620 | ||
Present value discount | (935,206) | (963,724) | ||
Allowance for losses on net investment in leases | (11,113) | $ (10,937) | 0 | |
Net investment in leases | $ 420,417 | $ 418,915 | $ 424,100 | |
Risk rating | 200.00% |
Net Investment in Leases - Futu
Net Investment in Leases - Future Minimum Lease Payments to be Collected Under Sales-Type Leases (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Amount | |
2020 (remaining three months) | $ 0 |
2021 | 14,248 |
2022 | 30,481 |
2023 | 41,855 |
2024 | 41,584 |
Thereafter | 892,753 |
Total undiscounted cash flows | $ 1,020,921 |
Net Investment in Leases - Allo
Net Investment in Leases - Allowance for Losses on Net Investment in Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Jan. 01, 2020 | |
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |||
Reserve for losses on net investment in leases at beginning of period | $ 10,937 | $ 0 | |
Initial allowance recorded upon adoption of new accounting standard | 10,937 | 0 | |
Provision for losses on net investment in leases | 176 | 2,002 | |
Allowance for losses on net investment in leases at end of period | 11,113 | $ 11,113 | |
ASU 2016-13 | |||
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |||
Initial allowance recorded upon adoption of new accounting standard | $ 9,100 | ||
Period of Adoption, Adjustment | |||
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |||
Reserve for losses on net investment in leases at beginning of period | 0 | ||
Initial allowance recorded upon adoption of new accounting standard | $ 0 | $ 9,111 |
Land and Development - Schedule
Land and Development - Schedule of Land and Development Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Land And Development [Abstract] | ||
Land and land development, at cost | $ 499,231 | $ 590,153 |
Less: accumulated depreciation | (10,315) | (9,608) |
Total land and development, net | $ 488,916 | $ 580,545 |
Land and Development - Narrativ
Land and Development - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Equity interest (as a percent) | 50.00% | 50.00% | ||
Real estate transaction price | $ 34,300 | |||
Payments to acquire land and develop asset | 7,300 | |||
Assumption of loan in acquisition transaction | 27,000 | |||
Revenues | $ 115,054 | $ 145,338 | $ 384,930 | 350,608 |
Impairment of assets | 0 | 0 | 6,491 | 4,953 |
Land and development asset | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 1,500 | 1,100 | ||
Land development revenue | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenues | 20,502 | 54,918 | 116,254 | 76,691 |
Cost of sales expense | $ 21,358 | $ 48,101 | $ 114,704 | $ 71,785 |
Loans Receivable and Other Le_3
Loans Receivable and Other Lending Investments, net - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other lending investments | $ 159,569 | $ 153,216 | |
Total gross carrying value of loans receivable and other lending investments | 798,520 | 856,495 | |
Allowance for loan losses | (33,447) | (28,634) | |
Total loans receivable and other lending investments, net | 765,073 | 827,861 | |
Financing receivables (refer to Note 5) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other lending investments | 45,704 | 44,339 | |
Held-to-maturity debt securities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other lending investments | 89,234 | 84,981 | |
Available-for-sale debt securities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other lending investments | 24,631 | 23,896 | |
Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 638,951 | 703,280 | |
Commercial Portfolio Segment | Senior mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 520,629 | 572,585 | |
Commercial Portfolio Segment | Corporate/Partnership loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 106,877 | 119,818 | |
Commercial Portfolio Segment | Subordinate mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 11,445 | 10,877 | |
Construction loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 552,806 | 614,386 | |
Allowance for loan losses | (9,138) | $ (11,736) | (6,668) |
Construction loans | Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 552,806 | 614,386 | |
Construction loans | Commercial Portfolio Segment | Senior mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 467,774 | 518,992 | |
Construction loans | Commercial Portfolio Segment | Corporate/Partnership loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 85,032 | 95,394 | |
Completed construction | Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | $ 262,100 | ||
Percentage of construction loans | 47.00% | ||
Substantially completed construction | Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | $ 22,500 | ||
Percentage of construction loans | 4.00% | ||
Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | $ 86,145 | 88,893 | |
Allowance for loan losses | (478) | $ (905) | (265) |
Loans | Commercial Portfolio Segment | Senior mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 52,855 | 53,592 | |
Loans | Commercial Portfolio Segment | Corporate/Partnership loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | 21,845 | 24,424 | |
Loans | Commercial Portfolio Segment | Subordinate mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Subtotal - gross carrying value of loans | $ 11,445 | $ 10,877 |
Loans Receivable and Other Le_4
Loans Receivable and Other Lending Investments, net - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Jan. 01, 2020 | |
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | $ 28,634 | |||||
Adoption of new accounting | $ 33,447 | 28,634 | $ 33,447 | |||
(Recovery of) provision for loan losses | (1,976) | $ (3,805) | 4,093 | $ (3,792) | ||
Allowance for loan losses at end of period | 33,447 | 33,447 | ||||
Held to Maturity Debt Securities | ||||||
Allowance for loan losses at beginning of period | 111 | 0 | ||||
Adoption of new accounting standard | 55 | 0 | 55 | |||
(Recovery of) Provision for loan losses | (56) | 35 | ||||
Allowance for loan losses at end of period | 55 | 55 | ||||
Total | ||||||
Allowance for loan losses at beginning of period | 35,612 | 28,634 | ||||
Allowance For Credit Loss | 33,447 | 33,447 | 33,447 | |||
(Recovery of) Provision for loan losses | (2,165) | 4,084 | ||||
Allowance for loan losses at end of period | 33,447 | 33,447 | ||||
Increase to reserves for loan losses | 1,700 | |||||
Recovery for loan losses | 2,000 | 4,100 | ||||
Accounts Payable, Accrued Expenses, and Other Liabilities | ||||||
Total | ||||||
Increase to reserves for loan losses | $ 2,500 | |||||
Recoveries for unfunded commitments | 700 | 900 | ||||
Accrued Interest And Operating Lease Income Receivable, Net | ||||||
Financing Receivables | ||||||
(Recovery of) provision for loan losses | 900 | 900 | ||||
ASU 2016-13 | ||||||
Total | ||||||
Increase to reserves for loan losses | 3,300 | |||||
Period of Adoption, Adjustment | ||||||
Held to Maturity Debt Securities | ||||||
Adoption of new accounting standard | 20 | |||||
Total | ||||||
Allowance For Credit Loss | 729 | |||||
Construction Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 11,736 | 6,668 | ||||
Adoption of new accounting | 9,138 | 6,668 | 9,138 | |||
(Recovery of) provision for loan losses | (2,598) | 2,823 | ||||
Allowance for loan losses at end of period | 9,138 | 9,138 | ||||
Construction Loans | Period of Adoption, Adjustment | ||||||
Financing Receivables | ||||||
Adoption of new accounting | (353) | |||||
Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 905 | 265 | ||||
Adoption of new accounting | 478 | 265 | 478 | |||
(Recovery of) provision for loan losses | (427) | 115 | ||||
Allowance for loan losses at end of period | 478 | 478 | ||||
Loans | Period of Adoption, Adjustment | ||||||
Financing Receivables | ||||||
Adoption of new accounting | 98 | |||||
Financing Receivables | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 1,159 | 0 | ||||
Adoption of new accounting | 1,176 | 0 | 1,176 | |||
(Recovery of) provision for loan losses | 17 | 212 | ||||
Allowance for loan losses at end of period | 1,176 | 1,176 | ||||
Financing Receivables | Period of Adoption, Adjustment | ||||||
Financing Receivables | ||||||
Adoption of new accounting | 964 | |||||
Specific Allowance | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 21,701 | 21,701 | ||||
Adoption of new accounting | 22,600 | 22,600 | $ 22,600 | |||
(Recovery of) provision for loan losses | 899 | 899 | ||||
Allowance for loan losses at end of period | $ 22,600 | $ 22,600 | ||||
Specific Allowance | Period of Adoption, Adjustment | ||||||
Financing Receivables | ||||||
Adoption of new accounting | $ 0 |
Loans Receivable and Other Le_5
Loans Receivable and Other Lending Investments, net - Investment in Loans and Associated Allowance for Loan Losses (Details) $ in Thousands | Sep. 30, 2020USD ($)Loan | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)Loan |
Other Lending Investments | |||
Total | $ 159,569 | $ 153,216 | |
Less: Allowance for loan losses | |||
Individually Evaluated for Impairment | (22,600) | (21,701) | |
Collectively Evaluated for Impairment | (10,847) | (6,933) | |
Total | (33,447) | (28,634) | |
Individually Evaluated for Impairment | 64,677 | 16,119 | |
Collectively Evaluated for Impairment | 700,396 | 811,742 | |
Total loans receivable and other lending investments, net | 765,073 | 827,861 | |
Net discounts | $ 600 | $ 100 | |
Number of non accrual loans | Loan | 2 | 1 | |
Held-to-maturity debt securities | |||
Other Lending Investments | |||
Individually Evaluated for Impairment | $ 0 | $ 0 | |
Collectively Evaluated for Impairment | 89,234 | 84,981 | |
Total | 89,234 | 84,981 | |
Available-for-sale debt securities | |||
Other Lending Investments | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 24,631 | 23,896 | |
Total | 24,631 | 23,896 | |
Construction loans | |||
Loans | |||
Individually Evaluated for Impairment | 50,257 | 0 | |
Collectively Evaluated for Impairment | 502,549 | 614,386 | |
Total | 552,806 | 614,386 | |
Less: Allowance for loan losses | |||
Total | (9,138) | $ (11,736) | (6,668) |
Loans and Other Lending Investments | |||
Loans | |||
Individually Evaluated for Impairment | 37,020 | 37,820 | |
Collectively Evaluated for Impairment | 49,125 | 51,073 | |
Total | 86,145 | 88,893 | |
Less: Allowance for loan losses | |||
Total | (478) | (905) | (265) |
Net discounts | 300 | 700 | |
Financing Receivables | |||
Loans | |||
Individually Evaluated for Impairment | 0 | 0 | |
Collectively Evaluated for Impairment | 45,704 | 44,339 | |
Total | 45,704 | 44,339 | |
Less: Allowance for loan losses | |||
Total | $ (1,176) | $ (1,159) | $ 0 |
Loans Receivable and Other Le_6
Loans Receivable and Other Lending Investments, net - Credit Characteristics for Performing Loans (Details) $ in Thousands | Sep. 30, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan |
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Number of non accrual loans | Loan | 2 | 1 |
Commercial Portfolio Segment | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | $ 638,951 | $ 703,280 |
Commercial Portfolio Segment | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 60,504 | |
2018 | 293,426 | |
2017 | 144,011 | |
2016 | 83,862 | |
Prior to 2016 | 15,575 | |
Total | 597,378 | |
Commercial Portfolio Segment | Senior mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 520,629 | 572,585 |
Loan on non-accrual status | 87,300 | |
Commercial Portfolio Segment | Senior mortgages | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 13,296 | |
2018 | 229,984 | |
2017 | 144,011 | |
2016 | 41,931 | |
Prior to 2016 | 4,130 | |
Total | 433,352 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 1.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 1.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 2.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 2.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 123,519 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 123,519 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 3.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 13,296 | |
2018 | 106,465 | |
2017 | 144,011 | |
2016 | 41,931 | |
Prior to 2016 | 4,130 | |
Total | 309,833 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 3.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 4.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 4.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Senior mortgages | Risk Rating 5.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 106,877 | 119,818 |
Commercial Portfolio Segment | Corporate/Partnership loans | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 1,504 | |
2018 | 63,442 | |
2017 | 0 | |
2016 | 41,931 | |
Prior to 2016 | 0 | |
Total | 106,877 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 1.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 16,404 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 16,404 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 1.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 2.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | ||
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 2.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 3.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 1,504 | |
2018 | 25,194 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 26,698 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 3.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 4.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 21,844 | |
2017 | 0 | |
2016 | 41,931 | |
Prior to 2016 | 0 | |
Total | 63,775 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 4.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Corporate/Partnership loans | Risk Rating 5.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 11,445 | $ 10,877 |
Commercial Portfolio Segment | Subordinate mortgages | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 11,445 | |
Total | 11,445 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 1.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 1.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 2.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 2.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 3.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 11,445 | |
Total | 11,445 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 3.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 4.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 4.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Subordinate mortgages | Risk Rating 5.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 45,704 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 45,704 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 1.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 1.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 2.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 45,704 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 45,704 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 2.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 3.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 3.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 4.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 4.5 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Financing Receivables | Risk Rating 5.0 | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior to 2016 | 0 | |
Total | $ 0 |
Loans Receivable and Other Le_7
Loans Receivable and Other Lending Investments, net - Credit Characteristics by Payment Status (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Financing receivable, number of loans greater than 90 days past due | loan | 1 | 1 |
Financing receivables, past due time period | 11 years 3 months 18 days | 10 years 6 months |
Commercial Portfolio Segment | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | $ 601,931 | $ 665,460 |
Total Past Due | 37,020 | 37,820 |
Total | 638,951 | 703,280 |
Commercial Portfolio Segment | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 37,020 | 37,820 |
Commercial Portfolio Segment | Senior mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 483,609 | 534,765 |
Total Past Due | 37,020 | 37,820 |
Total | 520,629 | 572,585 |
Commercial Portfolio Segment | Senior mortgages | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Senior mortgages | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 37,020 | 37,820 |
Commercial Portfolio Segment | Corporate/Partnership loans | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 106,877 | 119,818 |
Total Past Due | 0 | 0 |
Total | 106,877 | 119,818 |
Commercial Portfolio Segment | Corporate/Partnership loans | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Corporate/Partnership loans | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Subordinate mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 11,445 | 10,877 |
Total Past Due | 0 | 0 |
Total | 11,445 | 10,877 |
Commercial Portfolio Segment | Subordinate mortgages | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment | Subordinate mortgages | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Other Le_8
Loans Receivable and Other Lending Investments, net - Impaired Loans (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Loan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Loan | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Number of non accrual loans | Loan | 2 | 2 | 1 | ||
Interest income on Impaired loans | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized cost with related allowance recorded | 87,277,000 | 87,277,000 | $ 37,820,000 | ||
Unpaid principal balance with related allowance recorded | 86,627,000 | 86,627,000 | 37,923,000 | ||
Related Allowance with an allowance recorded | (22,600,000) | (22,600,000) | (21,701,000) | ||
Commercial Portfolio Segment | Senior mortgages | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Amortized cost with related allowance recorded | 87,277,000 | 87,277,000 | 37,820,000 | ||
Unpaid principal balance with related allowance recorded | 86,627,000 | 86,627,000 | 37,923,000 | ||
Related Allowance with an allowance recorded | $ (22,600,000) | $ (22,600,000) | $ (21,701,000) |
Loans Receivable and Other Le_9
Loans Receivable and Other Lending Investments, net - Other Lending Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale Securities | ||
Amortized Cost Basis | $ 20,680 | |
Estimated Fair Value | 24,631 | |
Held-to-Maturity Securities | ||
Amortized Cost Basis | 89,234 | |
Estimated Fair Value | 89,234 | |
Total Other Lending Investments | ||
Face Value | 120,680 | $ 121,140 |
Amortized Cost Basis | 109,914 | 106,121 |
Net Unrealized Gain | 3,951 | 2,756 |
Estimated Fair Value | 113,865 | 108,877 |
Net Carrying Value | 113,865 | 108,877 |
Municipal debt securities | ||
Available-for-Sale Securities | ||
Face Value | 20,680 | 21,140 |
Amortized Cost Basis | 20,680 | 21,140 |
Net Unrealized Gain | 3,951 | 2,756 |
Estimated Fair Value | 24,631 | 23,896 |
Net Carrying Value | 24,631 | 23,896 |
Debt securities | ||
Held-to-Maturity Securities | ||
Face Value | 100,000 | 100,000 |
Amortized Cost Basis | 89,234 | 84,981 |
Net Unrealized Gain | 0 | 0 |
Estimated Fair Value | 89,234 | 84,981 |
Net Carrying Value | $ 89,234 | $ 84,981 |
Loans Receivable and Other L_10
Loans Receivable and Other Lending Investments, net - Maturities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Amortized Cost Basis | |
Within one year | $ 0 |
After one year through 5 years | 89,234 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Amortized Cost Basis | 89,234 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 89,234 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 89,234 |
Amortized Cost Basis | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 20,680 |
Amortized Cost Basis | 20,680 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 24,631 |
Total | $ 24,631 |
Other Investments - Schedule of
Other Investments - Schedule of Other Investments (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Other investments | $ 1,123,093 | $ 1,123,093 | $ 907,875 | ||
Earnings (losses) from equity method investments | 6,805 | $ 7,617 | 26,003 | $ 16,566 | |
Interest expense | 42,407 | 46,522 | 127,748 | 136,851 | |
Dilution gain | 8,200 | 8,200 | |||
Mark-to-market gain | 14,000 | 23,900 | |||
Equity in earnings | 8,200 | 8,200 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Depreciation expense | 4,600 | 3,500 | 13,400 | 10,700 | |
Interest expense | $ 14,600 | 8,200 | $ 44,000 | 21,600 | |
SAFE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of shares owned (in shares) | 33.7 | 33.7 | |||
Closing price (in dollars per share) | $ 62.10 | $ 62.10 | |||
Market value | $ 2,100,000 | $ 2,100,000 | |||
Dilution gain | 7,900 | ||||
Equity in earnings | 7,900 | ||||
Other strategic investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other investments | 72,220 | 72,220 | 43,253 | ||
Earnings (losses) from equity method investments | 205 | 195 | (1,953) | 162 | |
Real estate equity investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value | 1,050,873 | 1,050,873 | 864,622 | ||
Earnings (losses) from equity method investments | 6,600 | 7,422 | 27,956 | 16,404 | |
Real estate equity investments | SAFE | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value | 855,925 | 855,925 | 729,357 | ||
Earnings (losses) from equity method investments | 9,331 | 2,946 | 36,905 | 14,076 | |
Real estate equity investments | iStar Net Lease II LLC (Net Lease Venture II) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value | 103,276 | 103,276 | 30,712 | ||
Earnings (losses) from equity method investments | 811 | (98) | 1,568 | (416) | |
Real estate equity investments | Other real estate equity investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying value | 91,672 | 91,672 | $ 104,553 | ||
Earnings (losses) from equity method investments | $ (3,542) | $ 4,574 | $ (10,517) | $ 2,744 |
Other Investments - Safehold In
Other Investments - Safehold Inc. (Details) $ / shares in Units, shares in Millions | Jan. 02, 2019director | Jun. 30, 2020 | Mar. 31, 2020USD ($)shares | Aug. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019USD ($)$ / sharesshares | May 31, 2018USD ($)office_building | Oct. 31, 2017USD ($) | Sep. 30, 2020USD ($)multiple | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)multiple | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2017USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity interest (as a percent) | 50.00% | 50.00% | ||||||||||||
Number of limited partnership units purchased (in shares) | shares | 12.5 | |||||||||||||
Investor units, purchase price per unit (in dollars per share) | $ / shares | $ 20 | |||||||||||||
Additional cash investment in equity method investment | $ 250,000,000 | $ 194,775,000 | $ 494,339,000 | |||||||||||
Restriction period on common stock received as payment | 2 years | |||||||||||||
Management agreement, termination fee as multiple of prior year management fee | multiple | 3 | 3 | ||||||||||||
Commitment to provide loan to lessee | $ 150,000,000 | |||||||||||||
SAFE | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Ground lease term (in years) | 99 years | 99 years | 98 years | 99 years | ||||||||||
SAFE | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Equity interest (as a percent) | 65.80% | 65.80% | ||||||||||||
Ground Lease, Atlanta medical office | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Commitment to provide loan to lessee | $ 24,000,000 | |||||||||||||
Amount of loan funded | $ 18,400,000 | |||||||||||||
Interest income | $ 300,000 | $ 1,200,000 | ||||||||||||
Multifamily Development San Jose | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Amount of loan funded | $ 59,100,000 | $ 59,100,000 | ||||||||||||
Interest income | 900,000 | 400,000 | 2,500,000 | 700,000 | ||||||||||
Lessor, operating lease, term of contract (in years) | 99 years | |||||||||||||
Real estate, leasehold improvement allowance | $ 7,200,000 | |||||||||||||
Proceeds from sale of ground lease | 34,000,000 | 34,000,000 | ||||||||||||
Gain on sale of ground lease | 6,100,000 | |||||||||||||
Multifamily Development San Jose | Leasehold First Mortgage | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Commitment to provide loan to lessee | 80,500,000 | |||||||||||||
Carrying value of loans | $ 80,500,000 | |||||||||||||
Ground Lease, Multi-tenant Office Atlanta | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Commitment to provide loan to lessee | $ 19,900,000 | |||||||||||||
Interest income | 500,000 | 1,600,000 | ||||||||||||
Number of office buildings | office_building | 2 | |||||||||||||
Ground Lease, Washington DC building conversion | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Commitment to provide loan to lessee | $ 13,300,000 | |||||||||||||
Interest income | 300,000 | 300,000 | 800,000 | 700,000 | ||||||||||
SAFE | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Expense reimbursements from related party | 1,300,000 | 500,000 | 3,800,000 | 1,600,000 | ||||||||||
Management Fees | SAFE | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee revenue from related party | 3,200,000 | $ 1,900,000 | $ 9,300,000 | $ 5,000,000 | ||||||||||
Fee percent of SAFE Equity up to $1.5 billion | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee as percent of equity | 1.00% | |||||||||||||
Fee percent of SAFE Equity up to $1.5 billion | Maximum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | 1,500,000,000 | $ 1,500,000,000 | ||||||||||||
Fee percent of SAFE Equity between $1.5 billion and $3.0 billion | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee as percent of equity | 1.25% | |||||||||||||
Fee percent of SAFE Equity between $1.5 billion and $3.0 billion | Maximum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | 3,000,000,000 | $ 3,000,000,000 | ||||||||||||
Fee percent of SAFE Equity between $1.5 billion and $3.0 billion | Minimum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | 1,500,000,000 | $ 1,500,000,000 | ||||||||||||
Fee percent of SAFE Equity between $3.0 billion and $5.0 billion | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee as percent of equity | 1.375% | |||||||||||||
Fee percent of SAFE Equity between $3.0 billion and $5.0 billion | Maximum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | 5,000,000,000 | $ 5,000,000,000 | ||||||||||||
Fee percent of SAFE Equity between $3.0 billion and $5.0 billion | Minimum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | 3,000,000,000 | $ 3,000,000,000 | ||||||||||||
Fee percent of SAFE Equity over $5.0 billion | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee as percent of equity | 1.50% | |||||||||||||
Fee percent of SAFE Equity over $5.0 billion | Minimum | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Management fee equity threshold amount | $ 5,000,000,000 | $ 5,000,000,000 | ||||||||||||
SAFE | Private Placement | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Shares acquired (in shares) | shares | 1.7 | |||||||||||||
Value of common stock issued in private placement | $ 80,000,000 | |||||||||||||
Real estate equity investments | SAFE | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Voting power cap threshold (as a percent) | 41.90% | |||||||||||||
Number of director nominees | director | 3 | |||||||||||||
Independent period | 3 years | |||||||||||||
Standstill provisions (in years) | 2 years | |||||||||||||
Exchange shares restriction period | 1 year | |||||||||||||
Stock transfer limitation maximum per agreement, other than widely distributed public offering (as a percent) | 20.00% |
Other Investments - Net Lease V
Other Investments - Net Lease Venture II (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019USD ($)ft²buildinglease | May 31, 2019USD ($) | Dec. 31, 2018USD ($)leasebuilding | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 50.00% | 50.00% | |||||
Commitment to provide loan to lessee | $ 150,000,000 | ||||||
Number of units to be built | building | 3 | ||||||
Acquisitions of real estate assets | $ 56,700,000 | $ 0 | $ 240,487,000 | ||||
Net Lease Venture II | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 51.90% | 51.90% | |||||
Net Lease Venture II | The Properties Livermore CA | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of properties | building | 2 | 4 | |||||
Acquisitions of real estate assets | $ 81,800,000 | $ 31,200,000 | |||||
Percentage of acquired properties leased (as a percent) | 100.00% | 100.00% | |||||
Number of leases | lease | 2 | 4 | |||||
Area of properties (sq ft) | ft² | 168,636 | ||||||
Net Lease Venture II | Other income | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Management fee revenue from related party | $ 400,000 | $ 400,000 | $ 1,100,000 | $ 1,100,000 | |||
Net Lease Venture II | Other income | Management Fees | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Amount of loan funded | $ 81,600,000 | $ 81,600,000 | |||||
Net Lease Venture II | Other income | Master Lease | Management Fees | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Term of master lease | 25 years |
Other Investments - Other Real
Other Investments - Other Real Estate Equity Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest (as a percent) | 50.00% | 50.00% | |||
Other Real Estate Equity Investments | Minimum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest (as a percent) | 31.00% | 31.00% | |||
Other Real Estate Equity Investments | Maximum | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest (as a percent) | 95.00% | 95.00% | |||
Other Real Estate Equity Investments | Operating Properties | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 61.3 | $ 61.3 | $ 61.7 | ||
Other Real Estate Equity Investments | Land Assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 30.4 | $ 30.4 | $ 42.9 | ||
Other Real Estate Equity Investment Aug 2018 | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest (as a percent) | 50.00% | 50.00% | 50.00% | ||
Loans receivable, carrying value | $ 33 | $ 33 | $ 33 | ||
Interest income | $ 0.6 | $ 0.7 | $ 1.8 | $ 2.1 |
Other Investments - Summarized
Other Investments - Summarized Investee Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 115,054 | $ 145,338 | $ 384,930 | $ 350,608 |
Expenses | 113,461 | 152,721 | 425,641 | 409,858 |
Net Income Attributable to Parent | $ 3,805 | $ 781 | (29,228) | 362,179 |
SAFE | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 115,518 | 63,810 | ||
Expenses | 73,821 | 38,480 | ||
Net Income Attributable to Parent | $ 44,024 | $ 16,574 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Deferred Expenses and Other Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating Leased Assets [Line Items] | |||||
Intangible assets, net | $ 158,976 | $ 158,976 | $ 174,973 | ||
Restricted cash | 47,787 | 47,787 | 45,034 | ||
Finance lease right-of-use assets | 144,097 | 144,097 | 145,209 | ||
Operating lease right-of-use assets | 50,371 | 50,371 | 34,063 | ||
Other assets | 21,114 | 21,114 | 17,534 | ||
Other receivables | 16,997 | 16,997 | 16,846 | ||
Leasing costs, net | 2,830 | 2,830 | 3,793 | ||
Corporate furniture, fixtures and equipment, net | 2,204 | 2,204 | 2,736 | ||
Deferred financing fees, net | 1,769 | 1,769 | 2,300 | ||
Deferred expenses and other assets, net | 446,145 | 446,145 | 442,488 | ||
Intangible assets, accumulated amortization | 42,200 | 42,200 | 33,400 | ||
Amortization of above market lease | $ 300 | $ 400 | $ 1,000 | $ 1,400 | |
Weighted average amortization period | 16 years 10 months 24 days | ||||
Operating leases, weighted average incremental borrowing rate, discount rate (percent) | 5.10% | 5.10% | |||
Operating leases, weighted average lease term (in years) | 8 years 6 months | 8 years 6 months | |||
Finance leases, weighted average rate implicit in the lease, discount rate (percent) | 5.50% | 5.50% | |||
Finance leases, weighted average lease term (in years) | 97 years 2 months 12 days | 97 years 2 months 12 days | |||
Accumulated amortization on leasing costs | $ 2,500 | $ 2,500 | 3,300 | ||
Accumulated depreciation on corporate furniture, fixtures and equipment | 14,000 | 14,000 | $ 13,100 | ||
Interest Expense | |||||
Operating Leased Assets [Line Items] | |||||
Finance lease, interest expense | 2,000 | 1,700 | 6,100 | 3,000 | |
Depreciation and Amortization | |||||
Operating Leased Assets [Line Items] | |||||
Finance lease, amortization | 400 | 300 | 1,100 | 500 | |
General and Administrative | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, expense | 1,200 | 900 | 3,400 | 2,800 | |
Real Estate Expense | |||||
Operating Leased Assets [Line Items] | |||||
Operating lease, expense | 900 | 900 | 2,600 | 2,600 | |
In-Place Leases | |||||
Operating Leased Assets [Line Items] | |||||
Amortization of intangible assets | $ 2,600 | $ 2,400 | $ 7,900 | $ 6,900 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Other Assets and Other Liabilities [Abstract] | |||||
Other liabilities | $ 81,422 | $ 81,422 | $ 81,709 | ||
Accrued expenses | 84,742 | 84,742 | 83,778 | ||
Finance lease liabilities (see table above) | 149,823 | 149,823 | 147,749 | ||
Intangible liabilities, net | 49,361 | 49,361 | 51,223 | ||
Operating lease liabilities (see table above) | 51,223 | 51,223 | 34,182 | ||
Accrued interest payable | 28,385 | 28,385 | 25,733 | ||
Accounts payable, accrued expenses and other liabilities | 444,956 | 444,956 | 424,374 | ||
Deferred income | 26,800 | 26,800 | 27,500 | ||
Derivative liabilities | 20,800 | 20,800 | 8,700 | ||
Expected credit losses for unfunded commitments | 1,700 | 1,700 | |||
Below market lease, accumulated amortization | 6,900 | 6,900 | $ 5,000 | ||
Amortization of below market lease | $ 600 | $ 700 | $ 1,900 | $ 1,800 |
Loan Participations Payable, _3
Loan Participations Payable, net (Details) $ in Thousands | Sep. 30, 2020USD ($)loan_payable | Dec. 31, 2019USD ($)loan_payable |
Transfers and Servicing [Abstract] | ||
Loan participations payable | $ 41,941 | $ 35,656 |
Debt premiums, discounts and deferred financing costs, net | (10) | (18) |
Total loan participations payable, net | 41,931 | 35,638 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable and other lending investments, net | 765,073 | 827,861 |
Loan Participations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable and other lending investments, net | $ 41,900 | $ 35,600 |
Loan Participations Payable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of debt instruments | loan_payable | 1 | 1 |
Weighted average interest rate (as a percent) | 600.00% | 6.30% |
Debt Obligations, net - Schedul
Debt Obligations, net - Schedule of Debt (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Aug. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 3,349,211,000 | $ 3,349,211,000 | $ 3,436,038,000 | ||||||||
Debt discounts and deferred financing costs, net | (41,528,000) | (41,528,000) | (48,958,000) | ||||||||
Total debt obligations, net | 3,307,683,000 | 3,307,683,000 | 3,387,080,000 | ||||||||
Interest costs capitalized | $ 500,000 | $ 500,000 | $ 1,600,000 | $ 6,900,000 | |||||||
Senior Term Loan | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||||||||||
3.125% Senior Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||||
Secured Credit Facility and Mortgages | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 1,236,711,000 | $ 1,236,711,000 | 1,212,993,000 | ||||||||
Debt discounts and deferred financing costs, net | (6,447,000) | (6,447,000) | |||||||||
Total debt obligations, net | 1,230,264,000 | 1,230,264,000 | |||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | 20,000,000 | $ 20,000,000 | 0 | ||||||||
Debt instrument term (in years) | 1 year | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 0.50% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.00% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | LIBOR | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.00% | 1.00% | |||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | LIBOR | Minimum | Interest Rate Category Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.00% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.50% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | LIBOR | Maximum | Interest Rate Category Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.50% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | Base Rate | Minimum | Interest Rate Category One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.50% | ||||||||||
Secured Credit Facility and Mortgages | Revolving Credit Facility | Base Rate | Maximum | Interest Rate Category One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.50% | ||||||||||
Secured Credit Facility and Mortgages | Senior Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | 491,875,000 | $ 491,875,000 | 491,875,000 | ||||||||
Debt instrument, face amount | $ 650,000,000 | ||||||||||
Secured Credit Facility and Mortgages | Senior Term Loan | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 0.50% | ||||||||||
Secured Credit Facility and Mortgages | Senior Term Loan | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.75% | 2.75% | |||||||||
Secured Credit Facility and Mortgages | Senior Term Loan | LIBOR | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.75% | ||||||||||
Secured Credit Facility and Mortgages | Mortgages Collateralized by Net Lease Assets | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 724,836,000 | $ 724,836,000 | 721,118,000 | ||||||||
Weighted average interest rate (as a percent) | 4.40% | 4.40% | |||||||||
Secured Credit Facility and Mortgages | Mortgages Collateralized by Net Lease Assets | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 1.70% | 1.70% | |||||||||
Secured Credit Facility and Mortgages | Mortgages Collateralized by Net Lease Assets | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 7.26% | 7.26% | |||||||||
Unsecured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 2,012,500,000 | $ 2,012,500,000 | 2,123,045,000 | ||||||||
Unsecured Notes | 6.00% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 0 | $ 0 | $ 110,545,000 | ||||||||
Stated interest rates (as a percent) | 6.00% | 6.00% | 6.00% | ||||||||
Unsecured Notes | 5.25% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 0 | $ 0 | $ 400,000,000 | ||||||||
Stated interest rates (as a percent) | 5.25% | 5.25% | |||||||||
Unsecured Notes | 3.125% Senior Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 287,500,000 | $ 287,500,000 | 287,500,000 | ||||||||
Total debt obligations, net | $ 273,500,000 | $ 273,500,000 | $ 268,700,000 | ||||||||
Stated interest rates (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||
Convertible debt, conversion ratio (in shares per par value) | 0.0697134 | ||||||||||
Convertible debt, conversion price (in dollars per share) | $ / shares | $ 14.34 | $ 14.34 | |||||||||
Liability component of convertible debt | $ 34,000,000 | $ 221,800,000 | |||||||||
Equity component of convertible debt | 3,400,000 | $ 22,500,000 | |||||||||
Debt instrument, face amount | $ 37,500,000 | ||||||||||
Unamortized discount | $ 11,600,000 | $ 11,600,000 | $ 15,500,000 | ||||||||
Contractual interest | 2,200,000 | $ 2,200,000 | 6,700,000 | $ 6,700,000 | |||||||
Amortization of debt discount | $ 1,300,000 | $ 1,300,000 | $ 3,900,000 | $ 3,700,000 | |||||||
Effective interest rate (as a percent) | 5.20% | 5.20% | |||||||||
Unsecured Notes | 4.75% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 775,000,000 | $ 775,000,000 | 775,000,000 | ||||||||
Stated interest rates (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||||
Debt instrument, face amount | $ 675,000,000 | $ 675,000,000 | $ 675,000,000 | $ 100,000,000 | |||||||
Effective interest rate (as a percent) | 4.29% | ||||||||||
Unsecured Notes | 4.25% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 550,000,000 | $ 550,000,000 | $ 550,000,000 | ||||||||
Stated interest rates (as a percent) | 4.25% | 4.25% | 4.25% | ||||||||
Debt instrument, face amount | $ 550,000,000 | ||||||||||
Unsecured Notes | 5.50% Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 400,000,000 | $ 400,000,000 | 0 | ||||||||
Stated interest rates (as a percent) | 5.50% | 5.50% | 5.50% | ||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
Other Debt Obligations | Trust Preferred Securities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||||
Other Debt Obligations | Trust Preferred Securities | LIBOR | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.50% |
Debt Obligations, net - Future
Debt Obligations, net - Future Scheduled Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
2020 (remaining three months) | $ 0 | |
2021 | 156,891 | |
2022 | 354,574 | |
2023 | 491,875 | |
2024 | 775,000 | |
Thereafter | 1,570,871 | |
Total principal maturities | 3,349,211 | $ 3,436,038 |
Unamortized discounts and deferred financing costs, net | (41,528) | (48,958) |
Total debt obligations, net | 3,307,683 | 3,387,080 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
2020 (remaining three months) | 0 | |
2021 | 0 | |
2022 | 287,500 | |
2023 | 0 | |
2024 | 775,000 | |
Thereafter | 1,050,000 | |
Total principal maturities | 2,112,500 | |
Unamortized discounts and deferred financing costs, net | (35,081) | |
Total debt obligations, net | 2,077,419 | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
2020 (remaining three months) | 0 | |
2021 | 156,891 | |
2022 | 67,074 | |
2023 | 491,875 | |
2024 | 0 | |
Thereafter | 520,871 | |
Total principal maturities | 1,236,711 | $ 1,212,993 |
Unamortized discounts and deferred financing costs, net | (6,447) | |
Total debt obligations, net | $ 1,230,264 |
Debt Obligations, net - Secured
Debt Obligations, net - Secured Term Loan and Credit Facility Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2020 | |
Senior Term Loan | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||
Secured Debt | Senior Term Loan | |||
Line of Credit Facility [Line Items] | |||
Debt instrument, face amount | $ 650,000,000 | ||
Required quarterly principal payment (as a percent) | 0.25% | ||
Secured Debt | Senior Term Loan | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 2.75% | 2.75% | |
Secured Debt | Senior Term Loan | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 1.75% | ||
Secured Debt | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 350,000,000 | ||
Debt instrument term (in years) | 1 year | ||
Current borrowing capacity | $ 330,000,000 | ||
Secured Debt | Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.25% | ||
Secured Debt | Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.45% | ||
Secured Debt | Revolving Credit Facility | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 2.00% | ||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 2.00% | 1.00% | |
Secured Debt | Revolving Credit Facility | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 2.50% | ||
Secured Debt | Revolving Credit Facility | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||
Secured Debt | Revolving Credit Facility | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis point spread on variable interest rate (as a percent) | 1.50% |
Debt Obligations, net - Unsecur
Debt Obligations, net - Unsecured Notes Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Aug. 31, 2020 | Nov. 30, 2019 | |
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | $ 7,924,000 | $ 0 | $ 12,038,000 | $ 468,000 | ||||
Unsecured notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on early extinguishment of debt | $ 12,000,000 | 500,000 | ||||||
Unsecured notes | 5.50% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||
Stated interest rates (as a percent) | 5.50% | 5.50% | 5.50% | |||||
Unsecured notes | 5.25% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||
Stated interest rates (as a percent) | 5.25% | |||||||
Unsecured notes | 4.75% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 675,000,000 | $ 675,000,000 | $ 100,000,000 | |||||
Stated interest rates (as a percent) | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |||
Percentage of par | 102.00% | |||||||
Yield to maturity (as a percent) | 4.29% | |||||||
Unsecured notes | 4.625% senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400,000,000 | $ 400,000,000 | ||||||
Stated interest rates (as a percent) | 4.625% | 4.625% | ||||||
Unsecured notes | 6.50% senior notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 275,000,000 | $ 275,000,000 | ||||||
Stated interest rates (as a percent) | 6.50% | 6.50% | ||||||
Unsecured notes | 4.25% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 550,000,000 | |||||||
Stated interest rates (as a percent) | 4.25% | 4.25% | 4.25% | |||||
Principal amount redeemed | $ 375,000,000 | |||||||
Unsecured notes | 6.00% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rates (as a percent) | 6.00% | 6.00% | 6.00% | |||||
Principal amount redeemed | $ 110,500,000 |
Debt Obligations, net - Debt Co
Debt Obligations, net - Debt Covenants (Details) | Sep. 30, 2020 |
Unsecured Debt | |
Debt Instrument [Line Items] | |
Unencumbered assets to unsecured indebtedness ratio (at least) | 1.2 |
Secured Debt | Senior Term Loan | |
Debt Instrument [Line Items] | |
Collateral coverage ratio (at least) | 1.25 |
Secured Debt | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Borrowing base asset value ratio | 1.5 |
Cash flow to fixed charges ratio | 1.5 |
Commitments and Contingencies -
Commitments and Contingencies - Fundings That May be Required (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Percentage of capital committed that may be drawn down | 100.00% |
Other Commitments [Line Items] | |
Performance-Based Commitments | $ 126,051 |
Strategic Investments | 9,967 |
Total | 136,018 |
Loans and Other Lending Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 83,423 |
Strategic Investments | 0 |
Total | 83,423 |
Real Estate | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 14,726 |
Strategic Investments | 0 |
Total | 14,726 |
Other Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 27,902 |
Strategic Investments | 9,967 |
Total | 37,869 |
Loan Participations | |
Other Commitments [Line Items] | |
Performance-Based Commitments | $ 8,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Other Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating | |||||
Remainder of fiscal year | $ 1,065 | $ 1,065 | |||
Year one | 3,797 | 3,797 | $ 4,167 | ||
Year two | 6,756 | 6,756 | 1,803 | ||
Year three | 6,393 | 6,393 | 1,098 | ||
Year four | 6,309 | 6,309 | 728 | ||
After year four | 6,793 | 6,793 | |||
Year five | 617 | ||||
After year five | 1,447 | ||||
Total undiscounted cash flows | 31,113 | 31,113 | 9,860 | ||
Present value discount | (4,103) | (4,103) | (1,057) | ||
Other adjustments | 24,213 | 24,213 | 25,379 | ||
Lease liabilities | 51,223 | 51,223 | 34,182 | ||
Finance | |||||
Remainder of fiscal year | 1,357 | 1,357 | |||
Year one | 5,494 | 5,494 | 5,386 | ||
Year two | 5,604 | 5,604 | 5,494 | ||
Year three | 5,716 | 5,716 | 5,604 | ||
Year four | 5,830 | 5,830 | 5,716 | ||
After year four | 1,573,773 | 1,573,773 | |||
Year five | 5,830 | ||||
After year five | 1,573,824 | ||||
Total undiscounted cash flows | 1,597,774 | 1,597,774 | 1,601,854 | ||
Present value discount | (1,447,951) | (1,447,951) | (1,454,105) | ||
Other adjustments | 0 | 0 | 0 | ||
Lease liabilities | 149,823 | 149,823 | $ 147,749 | ||
Operating lease payments made | 1,000 | $ 1,000 | 3,200 | $ 3,000 | |
Finance lease payments made | $ 1,400 | $ 1,100 | $ 4,000 | $ 2,000 | |
Operating leases, excluding tenant paid leases, weighted average lease term (in years) | 5 years 9 months 18 days | 4 years 2 months 12 days | |||
Operating leases, weighted average incremental borrowing rate, discount rate (as a percent) | 5.00% | 5.00% | 5.60% | ||
Finance leases, weighted average lease term (in years) | 97 years 2 months 12 days | 97 years 2 months 12 days | 93 years | ||
Finance leases, weighted average rate implicit in the lease, discount rate (as a percent) | 5.50% | 5.50% | 5.40% |
Derivatives - Classification on
Derivatives - Classification on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 20,800 | $ 8,700 |
Expected amount related to cash flow hedge that will be reclassified over next twelve months | 9,800 | |
Derivatives Designated in Hedging Relationships | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 114 |
Derivative Liabilities | 20,818 | 8,680 |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Deferred expenses and other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 114 |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 20,818 | $ 8,680 |
Derivatives - Effect in the Con
Derivatives - Effect in the Consolidated Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 197 | $ (9,091) | $ (30,930) | $ (45,090) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | [1] | (2,371) | (665) | (5,792) | (13,408) |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Earnings from equity method investments | |||||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 598 | (6,082) | (15,559) | (21,309) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | (333) | (126) | (866) | 28 | |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Interest expense | |||||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (401) | (3,009) | (15,371) | (23,781) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | $ (2,038) | $ (539) | $ (4,926) | $ (957) | |
[1] | Amounts reclassified to "Interest expense" in the Company's consolidated statements of operations for the three months ended September 30, 2020 and 2019 are $2,038 and $539, respectively, and amounts reclassified to "Interest expense" in the Company's consolidated statements of operations for the nine months ended September 30, 2020 and 2019 are $4,926 and $957, respectively. Amount reclassified to "Income from sales of real estate" in the Company's consolidated statements of operations is $806 for the nine months ended September 30, 2019. Amounts reclassified to "Earnings (losses) from equity method investments" in the Company's consolidated statements of operations for the three months ended September 30, 2020 and 2019 are $333 and $126, respectively, and amounts reclassified to "Earnings (losses) from equity method investments" in the Company's consolidated statements of operations for the nine months ended September 30, 2020 and 2019 are $866 and $(28), respectively. Amount reclassified to "Other expense" in the Company's consolidated statements of operations is $11,673 for the nine months ended September 30, 2019 resulting from hedged forecasted transactions becoming not probable to occur. |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 01, 2019 | |
Class of Stock [Line Items] | |||||||
Carrying value prior to redemption | $ 282,490,000 | $ 282,490,000 | $ 282,490,000 | $ 282,490,000 | |||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred Stock | |||||||
Shares Issued and Outstanding (in shares) | 12,200,000 | 12,200,000 | 12,200,000 | 12,200,000 | |||
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Carrying Value | $ 282,490,000 | $ 282,490,000 | $ 282,490,000 | $ 282,490,000 | |||
Number of days in year used in the computation of preferred stock dividends for any partial dividend period | 360 days | 360 days | |||||
Number of months used in the computation of preferred stock dividends for any partial dividend period | 12 months | 12 months | |||||
Number of days in month, dividends computation of dividends payable for any partial dividend period | 30 days | 30 days | |||||
Preferred stock dividends declared and paid | 5,874,000 | $ 8,124,000 | $ 17,622,000 | $ 24,372,000 | |||
Capital gains distribution (as a percent) | 100.00% | ||||||
Unrecaptured Section 1250 gain (as a percent) | 34.01% | ||||||
Amount of preferred dividends in arrears | $ 0 | ||||||
Maximum | |||||||
Preferred Stock | |||||||
Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date | 30 days | 30 days | |||||
Minimum | |||||||
Preferred Stock | |||||||
Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date | 10 days | 10 days | |||||
Series J (convertible) | |||||||
Class of Stock [Line Items] | |||||||
Shares issued upon conversion (in shares) | 16,500,000 | ||||||
Conversion rate (in shares) | 4.125 | ||||||
Carrying value prior to redemption | $ 193,500,000 | ||||||
Liquidation preference (in dollars per share) | $ 50 | ||||||
Preferred Stock | |||||||
Liquidation Preference (in dollars per share) | $ 50 | ||||||
Carrying Value | $ 193,500,000 | ||||||
Preferred stock dividends declared and paid | $ 6,800,000 | ||||||
Series D | |||||||
Class of Stock [Line Items] | |||||||
Carrying value prior to redemption | $ 89,041,000 | $ 89,041,000 | $ 89,041,000 | $ 89,041,000 | |||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred Stock | |||||||
Shares Issued and Outstanding (in shares) | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Rate per Annum | 8.00% | 8.00% | |||||
Annual Dividend Per Share (in dollars per share) | $ 2 | $ 2 | |||||
Carrying Value | $ 89,041,000 | $ 89,041,000 | $ 89,041,000 | $ 89,041,000 | |||
Preferred stock dividends declared and paid | 6,000,000 | 6,000,000 | |||||
Series G | |||||||
Class of Stock [Line Items] | |||||||
Carrying value prior to redemption | $ 72,664,000 | $ 72,664,000 | $ 72,664,000 | $ 72,664,000 | |||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred Stock | |||||||
Shares Issued and Outstanding (in shares) | 3,200,000 | 3,200,000 | 3,200,000 | 3,200,000 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Rate per Annum | 7.65% | 7.65% | |||||
Annual Dividend Per Share (in dollars per share) | $ 1.91 | $ 1.91 | |||||
Carrying Value | $ 72,664,000 | $ 72,664,000 | $ 72,664,000 | $ 72,664,000 | |||
Preferred stock dividends declared and paid | $ 4,600,000 | 4,600,000 | |||||
Redemption price as a percentage of liquidation preference | 100.00% | ||||||
Series I | |||||||
Class of Stock [Line Items] | |||||||
Carrying value prior to redemption | $ 120,785,000 | $ 120,785,000 | $ 120,785,000 | $ 120,785,000 | |||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Preferred Stock | |||||||
Shares Issued and Outstanding (in shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | $ 25 | $ 25 | |||
Rate per Annum | 7.50% | 7.50% | |||||
Annual Dividend Per Share (in dollars per share) | $ 1.88 | $ 1.88 | |||||
Carrying Value | $ 120,785,000 | $ 120,785,000 | $ 120,785,000 | $ 120,785,000 | |||
Preferred stock dividends declared and paid | $ 7,000,000 | $ 7,000,000 | |||||
Redemption price as a percentage of liquidation preference | 100.00% |
Equity - Dividends (Details)
Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Equity [Abstract] | |||||
Operating loss carryforwards | $ 460,600 | ||||
Common stock dividends declared | $ 8,315 | $ 6,291 | $ 24,598 | $ 18,991 | |
Common stock dividends declared per share (in dollars per share) | $ 0.11 | $ 0.10 | $ 0.32 | $ 0.29 |
Equity - Stock Repurchase Progr
Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Aug. 31, 2020 | |
Equity [Abstract] | |||
Stock repurchased during period (in shares) | 3.7 | 6.2 | |
Common stock value repurchased including acquisition costs | $ 41,400,000 | $ 58,800,000 | |
Average cost per share of repurchased shares (in dollars per share) | $ 11.32 | $ 9.44 | |
Stock repurchase program, authorized amount | $ 50,000,000 | ||
Stock repurchase program remaining authorized amount | $ 40,800,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Impact from adoption of new accounting standards | $ 1,093,448 | $ 1,113,785 | $ 1,237,960 | $ 1,300,623 | $ 1,321,197 | $ 1,064,115 |
Unrealized gains on available-for-sale securities | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Impact from adoption of new accounting standards | 3,951 | 2,756 | ||||
Unrealized losses on cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Impact from adoption of new accounting standards | (56,863) | (37,264) | ||||
Unrealized losses on cumulative translation adjustment | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Impact from adoption of new accounting standards | (4,199) | (4,199) | ||||
Accumulated other comprehensive loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Impact from adoption of new accounting standards | $ (57,111) | $ (59,045) | $ (38,707) | $ (40,522) | $ (34,137) | $ (17,270) |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans and Employee Benefits - Stock-Based Compensation and Long-Term Incentive Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 5,661 | $ 6,740 | $ 26,675 | $ 20,694 | ||
Shares authorized for issuance (in shares) | 8,900,000 | 8,000,000 | ||||
Long-term Incentive Plan 2009 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares remaining available for issuance (in shares) | 2,400,000 | 2,400,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans and Employee Benefits - Performance Incentive Plans (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)ownership_class$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation | $ | $ 5,661 | $ 6,740 | $ 26,675 | $ 20,694 | |
Performance Incentive Plan | |||||
Accrued expenses | $ | 84,742 | $ 84,742 | $ 83,778 | ||
iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 6 years | ||||
Performance Incentive Plan | |||||
Accrued expenses | $ | $ 58,600 | $ 58,600 | $ 41,900 | ||
2019-2020 Performance Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of ownership classes of consolidated subsidiary | ownership_class | 2 | ||||
Ownership percentage of class A units (as a percent) | 100.00% | ||||
Equity-based compensation | $ | $ 2,500 | 2,000 | |||
Settlement or distribution on units and awards, cash (as a percent) | 50.00% | ||||
Settlement or distribution on units and awards, common stock (as a percent) | 50.00% | ||||
2013-2018 Performance Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation | $ | $ 20,200 | 14,100 | |||
Settlement or distribution on units and awards, cash (as a percent) | 50.00% | ||||
Settlement or distribution on units and awards, common stock (as a percent) | 50.00% | ||||
2013-2014 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 80.17 | 80.17 | |||
Forfeited (in shares) | (1) | ||||
Points at end of period (in shares) | 81.17 | ||||
iPIP distributions to plan participants | $ | $ 7,400 | ||||
iPIP distributions, equity component (in shares) | 389,545 | ||||
iPIP distributions, equity component, fair value (in dollars per share) | $ / shares | $ 9.21 | ||||
iPIP distributions, shares issued net of tax withholdings (in shares) | 209,118 | ||||
2015-2016 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 70.40 | 70.40 | |||
Forfeited (in shares) | (2.88) | ||||
Points at end of period (in shares) | 73.28 | ||||
iPIP distributions to plan participants | $ | $ 1,500 | ||||
iPIP distributions, equity component (in shares) | 54,245 | ||||
iPIP distributions, equity component, fair value (in dollars per share) | $ / shares | $ 14.51 | ||||
iPIP distributions, shares issued net of tax withholdings (in shares) | 32,825 | ||||
2017-2018 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 73.34 | 73.34 | |||
Forfeited (in shares) | (3.93) | ||||
Points at end of period (in shares) | 77.27 | ||||
Vesting at end of second year | iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 40.00% | ||||
Vesting at end of third year | iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15.00% | ||||
Vesting at end of fourth year | iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15.00% | ||||
Vesting at end of fifth year | iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15.00% | ||||
Vesting at end of sixth year | iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15.00% |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans and Employee Benefits - Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)shares | |
Number of Shares | |
Non-vested at beginning of period (in shares) | 598 |
Granted (in shares) | 181 |
Vested (in shares) | (109) |
Non-vested at end of period (in shares) | 670 |
Unrecognized compensation cost | $ | $ 3.3 |
Weighted-average period to recognize the unrecognized compensation cost | 1 year 2 months 12 days |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans and Employee Benefits - Directors' Awards (Details) - Directors $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
CSE | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted (in shares) | 2,438 |
Grant date fair value (in dollars per share) | $ / shares | $ 11.48 |
CSE and Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, outstanding (in shares) | 178,864 |
Non-vested, aggregate intrinsic value | $ | $ 2.1 |
Award Date One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted (in shares) | 79,138 |
Grant date fair value (in dollars per share) | $ / shares | $ 9.75 |
Award Date Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares granted (in shares) | 10,710 |
Grant date fair value (in dollars per share) | $ / shares | $ 11.52 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans and Employee Benefits - 401(k) Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Gross contributions made by the Company | $ 0.2 | $ 0.1 | $ 1 | $ 0.8 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 6,451 | $ 3,626 | $ (20,793) | $ 370,347 |
Net income attributable to noncontrolling interests | (2,646) | (2,845) | (8,435) | (8,168) |
Preferred dividends | (5,874) | (8,124) | (17,622) | (24,372) |
Net income (loss) allocable to common shareholders | (2,069) | (7,343) | (46,850) | 337,807 |
Add: Effect of Series J convertible perpetual preferred stock | 0 | 0 | 0 | 6,750 |
Net income (loss) allocable to common shareholders for diluted earnings per common share | $ (2,069) | $ (7,343) | $ (46,850) | $ 344,557 |
Earnings Per Share - Earnings A
Earnings Per Share - Earnings Allocable to Common Shares (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($)trading_day$ / sharesshares | |
Numerator for basic earnings per share: | ||||
Net income (loss) attributable to iStar Inc. and allocable to common shareholders | $ | $ (2,069) | $ (7,343) | $ (46,850) | $ 337,807 |
Numerator for diluted earnings per share: | ||||
Net income (loss) attributable to iStar Inc. and allocable to common shareholders | $ | $ (2,069) | $ (7,343) | $ (46,850) | $ 344,557 |
Denominator for basic and diluted earnings per share: | ||||
Weighted average common shares outstanding for basic earnings per common share (in shares) | 75,033 | 62,168 | 76,232 | 64,624 |
Add: Effect of assumed shares issued under treasury stock method for restricted stock units (in shares) | 0 | 0 | 0 | 114 |
Add: Effect of series J convertible perpetual preferred stock (in shares) | 0 | 0 | 0 | 16,138 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 75,033 | 62,168 | 76,232 | 80,876 |
Basic earnings per common share: | ||||
Net income (loss) allocable to common shareholders (in dollars per share) | $ / shares | $ (0.03) | $ (0.12) | $ (0.61) | $ 5.23 |
Diluted earnings per common share: | ||||
Net income (loss) allocable to common shareholders (in dollars per share) | $ / shares | $ (0.03) | $ (0.12) | $ (0.61) | $ 4.26 |
Series J convertible perpetual preferred stock | 16,306 | |||
3.125% Senior Convertible Notes | ||||
Diluted earnings per common share: | ||||
Stated interest rates (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% |
Threshold consecutive trading days | trading_day | 40 |
Fair Values - Schedule of Fair
Fair Values - Schedule of Fair Value Measurement (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)land_asset | Sep. 30, 2020USD ($) | |
Assets and liabilities recorded at fair value | ||
Derivative liabilities | $ 8,700 | $ 20,800 |
Other investments | 907,875 | 1,123,093 |
Recurring Basis | Fair Value | ||
Assets and liabilities recorded at fair value | ||
Derivative assets | 114 | |
Derivative liabilities | 8,680 | 20,818 |
Available-for-sale securities | 23,896 | 24,631 |
Recurring Basis | Quoted market prices in active markets (Level 1) | ||
Assets and liabilities recorded at fair value | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Recurring Basis | Significant other observable inputs (Level 2) | ||
Assets and liabilities recorded at fair value | ||
Derivative assets | 114 | |
Derivative liabilities | 8,680 | 20,818 |
Available-for-sale securities | 0 | 0 |
Recurring Basis | Significant unobservable inputs (Level 3) | ||
Assets and liabilities recorded at fair value | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Available-for-sale securities | 23,896 | 24,631 |
Non-recurring Basis | ||
Assets and liabilities recorded at fair value | ||
Aggregate impairments | $ 5,300 | |
Number of land and development assets impaired | land_asset | 2 | |
Non-recurring Basis | Fair Value | ||
Assets and liabilities recorded at fair value | ||
Other investments | 62,961 | |
Impaired land and development | $ 40,000 | |
Non-recurring Basis | Quoted market prices in active markets (Level 1) | ||
Assets and liabilities recorded at fair value | ||
Other investments | 0 | |
Impaired land and development | 0 | |
Non-recurring Basis | Significant other observable inputs (Level 2) | ||
Assets and liabilities recorded at fair value | ||
Other investments | 62,961 | |
Impaired land and development | 0 | |
Non-recurring Basis | Significant unobservable inputs (Level 3) | ||
Assets and liabilities recorded at fair value | ||
Other investments | $ 0 | |
Impaired land and development | $ 40,000 |
Fair Values - Summary of Change
Fair Values - Summary of Changes in Level 3 Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 23,896 | $ 21,661 |
Repayments | (460) | (45) |
Unrealized gains recorded in other comprehensive income | 1,195 | 2,486 |
Ending balance | $ 24,631 | $ 24,102 |
Fair Values - Fair Values of Fi
Fair Values - Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Book and estimated fair values of financial instruments | ||
Loans receivable and other lending investments, net | $ 765,073 | $ 827,861 |
Debt obligations, net | 3,307,683 | 3,387,080 |
Fair Value | ||
Book and estimated fair values of financial instruments | ||
Loans receivable and other lending investments, net | 800,000 | 900,000 |
Debt obligations, net | $ 3,300,000 | $ 3,600,000 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 4 | |||||
Segment Reporting | ||||||
Revenues | $ 115,054 | $ 145,338 | $ 384,930 | $ 350,608 | ||
Earnings from equity method investments | 6,805 | 7,617 | 26,003 | 16,566 | ||
Selling profit from sales-type leases | 0 | 0 | 0 | 180,416 | ||
Income from sales of real estate | 6,055 | 3,476 | 6,118 | 233,406 | ||
Total revenue and other earnings | 127,914 | 156,431 | 417,051 | 780,996 | ||
Other expense | (73) | (407) | (351) | (12,798) | ||
Allocated interest expense | (42,407) | (46,522) | (127,748) | (136,851) | ||
Allocated general and administrative | (14,207) | (17,370) | (46,463) | (51,818) | ||
Segment profit (loss) | 32,934 | 20,844 | 74,077 | 436,579 | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | (1,976) | (3,805) | 4,093 | (3,792) | ||
Provision for losses on net investment in leases | 175 | 0 | 2,001 | 0 | ||
Impairment of assets | 0 | 0 | 6,491 | 4,953 | ||
Depreciation and amortization | 14,621 | 14,199 | 43,407 | 43,586 | ||
Capitalized expenditures | 7,150 | 31,198 | 35,556 | 103,614 | ||
Segment assets | ||||||
Real estate, net | 1,487,095 | 1,487,095 | $ 1,527,219 | |||
Real estate available and held for sale | 5,519 | 5,519 | 8,650 | |||
Total real estate | 1,492,614 | 1,492,614 | 1,535,869 | |||
Net investment in leases | 420,417 | 420,417 | 418,915 | $ 424,100 | ||
Land and development, net | 488,916 | 488,916 | 580,545 | |||
Loans receivable and other lending investments, net | 765,073 | 765,073 | 827,861 | |||
Other investments | 1,123,093 | 1,123,093 | 907,875 | |||
Total portfolio assets | 4,290,113 | 4,290,113 | 4,271,065 | |||
Cash and other assets | 598,010 | 598,010 | 814,044 | |||
Total assets | 4,888,123 | 4,888,123 | 5,085,109 | |||
Stock-based compensation expense | 5,661 | 6,740 | 26,675 | 20,694 | ||
Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 46,370 | 44,110 | 140,529 | 158,210 | ||
Interest income | ||||||
Segment Reporting | ||||||
Revenues | 14,270 | 19,701 | 46,925 | 60,417 | ||
Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 8,360 | 8,339 | 25,010 | 12,157 | ||
Other income | ||||||
Segment Reporting | ||||||
Revenues | 25,552 | 18,270 | 56,212 | 43,133 | ||
Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | (16,935) | (23,187) | (53,708) | (71,165) | ||
Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 20,502 | 54,918 | 116,254 | 76,691 | ||
Cost of sales expense | (21,358) | (48,101) | (114,704) | (71,785) | ||
Operating Segments | Net Lease | ||||||
Segment Reporting | ||||||
Earnings from equity method investments | 10,141 | 2,848 | 38,472 | 13,660 | ||
Selling profit from sales-type leases | 180,416 | |||||
Income from sales of real estate | 6,055 | 3,458 | 6,056 | 223,200 | ||
Total revenue and other earnings | 71,165 | 59,787 | 209,709 | 579,485 | ||
Other expense | 0 | 0 | 0 | 0 | ||
Allocated interest expense | (26,049) | (25,176) | (74,915) | (70,548) | ||
Allocated general and administrative | (5,161) | (6,887) | (17,327) | (19,299) | ||
Segment profit (loss) | 32,819 | 21,264 | 97,970 | 471,303 | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | 19 | 0 | 212 | 0 | ||
Provision for losses on net investment in leases | 175 | 2,001 | ||||
Impairment of assets | 2,036 | 0 | ||||
Depreciation and amortization | 12,781 | 12,409 | 37,924 | 38,242 | ||
Capitalized expenditures | 1,896 | 7,846 | 8,913 | 12,707 | ||
Segment assets | ||||||
Real estate, net | 1,288,931 | 1,288,931 | 1,327,082 | |||
Real estate available and held for sale | 0 | 0 | 0 | |||
Total real estate | 1,288,931 | 1,288,931 | 1,327,082 | |||
Net investment in leases | 420,417 | 420,417 | 418,915 | |||
Land and development, net | 0 | 0 | 0 | |||
Loans receivable and other lending investments, net | 44,528 | 44,528 | 44,339 | |||
Other investments | 959,201 | 959,201 | 760,068 | |||
Total portfolio assets | 2,713,077 | 2,713,077 | 2,550,404 | |||
Operating Segments | Net Lease | Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 41,144 | 38,006 | 124,109 | 136,150 | ||
Operating Segments | Net Lease | Interest income | ||||||
Segment Reporting | ||||||
Revenues | 911 | 789 | 2,594 | 1,197 | ||
Operating Segments | Net Lease | Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 8,360 | 8,339 | 25,010 | 12,157 | ||
Operating Segments | Net Lease | Other income | ||||||
Segment Reporting | ||||||
Revenues | 4,554 | 6,347 | 13,468 | 12,705 | ||
Operating Segments | Net Lease | Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | (7,136) | (6,460) | (19,497) | (18,335) | ||
Operating Segments | Net Lease | Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of sales expense | 0 | 0 | 0 | 0 | ||
Operating Segments | Real Estate Finance | ||||||
Segment Reporting | ||||||
Earnings from equity method investments | 0 | 0 | 0 | 0 | ||
Selling profit from sales-type leases | 0 | |||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||
Total revenue and other earnings | 13,463 | 19,027 | 48,580 | 62,056 | ||
Other expense | (37) | (49) | (80) | (359) | ||
Allocated interest expense | (5,831) | (6,902) | (17,989) | (23,251) | ||
Allocated general and administrative | (1,451) | (2,035) | (5,123) | (6,523) | ||
Segment profit (loss) | 6,144 | 10,041 | 25,388 | 31,923 | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | (1,995) | (3,805) | 3,881 | (3,792) | ||
Provision for losses on net investment in leases | 0 | 0 | ||||
Impairment of assets | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Capitalized expenditures | 0 | 0 | 0 | 0 | ||
Segment assets | ||||||
Real estate, net | 0 | 0 | 0 | |||
Real estate available and held for sale | 0 | 0 | 0 | |||
Total real estate | 0 | 0 | 0 | |||
Net investment in leases | 0 | 0 | 0 | |||
Land and development, net | 0 | 0 | 0 | |||
Loans receivable and other lending investments, net | 720,545 | 720,545 | 783,522 | |||
Other investments | 0 | 0 | 0 | |||
Total portfolio assets | 720,545 | 720,545 | 783,522 | |||
Operating Segments | Real Estate Finance | Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Real Estate Finance | Interest income | ||||||
Segment Reporting | ||||||
Revenues | 13,359 | 18,912 | 44,331 | 59,220 | ||
Operating Segments | Real Estate Finance | Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Real Estate Finance | Other income | ||||||
Segment Reporting | ||||||
Revenues | 104 | 115 | 4,249 | 2,836 | ||
Operating Segments | Real Estate Finance | Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | 0 | 0 | 0 | 0 | ||
Operating Segments | Real Estate Finance | Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of sales expense | 0 | 0 | 0 | 0 | ||
Operating Segments | Operating Properties | ||||||
Segment Reporting | ||||||
Earnings from equity method investments | (4,134) | 4,875 | (11,741) | (166) | ||
Selling profit from sales-type leases | 0 | |||||
Income from sales of real estate | 0 | 18 | 62 | 10,206 | ||
Total revenue and other earnings | 3,959 | 18,538 | 11,079 | 45,844 | ||
Other expense | 0 | 0 | 0 | 0 | ||
Allocated interest expense | (2,289) | (2,393) | (6,731) | (7,859) | ||
Allocated general and administrative | (582) | (727) | (1,966) | (2,214) | ||
Segment profit (loss) | (3,340) | 6,104 | (14,218) | 7,125 | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | 0 | 0 | 0 | 0 | ||
Provision for losses on net investment in leases | 0 | 0 | ||||
Impairment of assets | 2,983 | 3,853 | ||||
Depreciation and amortization | 1,287 | 1,244 | 3,843 | 3,701 | ||
Capitalized expenditures | 84 | 2,816 | 1,421 | 4,878 | ||
Segment assets | ||||||
Real estate, net | 198,164 | 198,164 | 200,137 | |||
Real estate available and held for sale | 5,519 | 5,519 | 8,650 | |||
Total real estate | 203,683 | 203,683 | 208,787 | |||
Net investment in leases | 0 | 0 | 0 | |||
Land and development, net | 0 | 0 | 0 | |||
Loans receivable and other lending investments, net | 0 | 0 | 0 | |||
Other investments | 61,315 | 61,315 | 61,686 | |||
Total portfolio assets | 264,998 | 264,998 | 270,473 | |||
Operating Segments | Operating Properties | Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 5,137 | 6,034 | 16,153 | 21,844 | ||
Operating Segments | Operating Properties | Interest income | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Operating Properties | Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Operating Properties | Other income | ||||||
Segment Reporting | ||||||
Revenues | 2,956 | 7,611 | 6,605 | 13,960 | ||
Operating Segments | Operating Properties | Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | (4,428) | (9,314) | (16,600) | (28,646) | ||
Operating Segments | Operating Properties | Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of sales expense | 0 | 0 | 0 | 0 | ||
Operating Segments | Land and Development | ||||||
Segment Reporting | ||||||
Earnings from equity method investments | 592 | (301) | 1,225 | 2,910 | ||
Selling profit from sales-type leases | 0 | |||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||
Total revenue and other earnings | 25,014 | 56,811 | 123,304 | 86,694 | ||
Other expense | 0 | 0 | 0 | 0 | ||
Allocated interest expense | (4,606) | (5,268) | (13,598) | (15,888) | ||
Allocated general and administrative | (2,320) | (3,019) | (7,524) | (9,199) | ||
Segment profit (loss) | (8,641) | (6,990) | (30,133) | (34,362) | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | 0 | 0 | 0 | 0 | ||
Provision for losses on net investment in leases | 0 | 0 | ||||
Impairment of assets | 1,472 | 1,100 | ||||
Depreciation and amortization | 243 | 243 | 729 | 733 | ||
Capitalized expenditures | 5,170 | 20,536 | 25,222 | 86,029 | ||
Segment assets | ||||||
Real estate, net | 0 | 0 | 0 | |||
Real estate available and held for sale | 0 | 0 | 0 | |||
Total real estate | 0 | 0 | 0 | |||
Net investment in leases | 0 | 0 | 0 | |||
Land and development, net | 488,916 | 488,916 | 580,545 | |||
Loans receivable and other lending investments, net | 0 | 0 | 0 | |||
Other investments | 30,357 | 30,357 | 42,866 | |||
Total portfolio assets | 519,273 | 519,273 | 623,411 | |||
Operating Segments | Land and Development | Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 89 | 70 | 267 | 216 | ||
Operating Segments | Land and Development | Interest income | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Land and Development | Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Operating Segments | Land and Development | Other income | ||||||
Segment Reporting | ||||||
Revenues | 3,831 | 2,124 | 5,558 | 6,877 | ||
Operating Segments | Land and Development | Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | (5,371) | (7,413) | (17,611) | (24,184) | ||
Operating Segments | Land and Development | Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 20,502 | 54,918 | 116,254 | 76,691 | ||
Cost of sales expense | (21,358) | (48,101) | (114,704) | (71,785) | ||
Corporate/Other | ||||||
Segment Reporting | ||||||
Earnings from equity method investments | 206 | 195 | (1,953) | 162 | ||
Selling profit from sales-type leases | 0 | |||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||
Total revenue and other earnings | 14,313 | 2,268 | 24,379 | 6,917 | ||
Other expense | (36) | (358) | (271) | (12,439) | ||
Allocated interest expense | (3,632) | (6,783) | (14,515) | (19,305) | ||
Allocated general and administrative | (4,693) | (4,702) | (14,523) | (14,583) | ||
Segment profit (loss) | 5,952 | (9,575) | (4,930) | (39,410) | ||
Other significant items: | ||||||
(Recovery of) provision for loan losses | 0 | 0 | 0 | 0 | ||
Provision for losses on net investment in leases | 0 | 0 | ||||
Impairment of assets | 0 | 0 | ||||
Depreciation and amortization | 310 | 303 | 911 | 910 | ||
Capitalized expenditures | 0 | 0 | 0 | 0 | ||
Segment assets | ||||||
Real estate, net | 0 | 0 | 0 | |||
Real estate available and held for sale | 0 | 0 | 0 | |||
Total real estate | 0 | 0 | 0 | |||
Net investment in leases | 0 | 0 | 0 | |||
Land and development, net | 0 | 0 | 0 | |||
Loans receivable and other lending investments, net | 0 | 0 | 0 | |||
Other investments | 72,220 | 72,220 | 43,255 | |||
Total portfolio assets | 72,220 | 72,220 | $ 43,255 | |||
Corporate/Other | Operating lease income | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Corporate/Other | Interest income | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Corporate/Other | Interest income from sales-type leases | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Corporate/Other | Other income | ||||||
Segment Reporting | ||||||
Revenues | 14,107 | 2,073 | 26,332 | 6,755 | ||
Corporate/Other | Real estate expense | ||||||
Segment Reporting | ||||||
Cost of sales expense | 0 | 0 | 0 | 0 | ||
Corporate/Other | Land development revenue | ||||||
Segment Reporting | ||||||
Revenues | 0 | 0 | 0 | 0 | ||
Cost of sales expense | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Profit to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting [Abstract] | ||||
Segment profit | $ 32,934 | $ 20,844 | $ 74,077 | $ 436,579 |
Less: Recovery of (provision for) loan losses | 1,976 | 3,805 | (4,093) | 3,792 |
Less: Provision for losses on net investment in leases | (175) | 0 | (2,001) | 0 |
Less: Impairment of assets | 0 | 0 | (6,491) | (4,953) |
Less: Stock-based compensation expense | (5,661) | (6,740) | (26,675) | (20,694) |
Less: Depreciation and amortization | (14,621) | (14,199) | (43,407) | (43,586) |
Less: Income tax expense | (78) | (84) | (165) | (323) |
Less: Loss on early extinguishment of debt, net | (7,924) | 0 | (12,038) | (468) |
Net income (loss) | $ 6,451 | $ 3,626 | $ (20,793) | $ 370,347 |