Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
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 (in shares) | 69,475,927 | |
Entity Central Index Key | 0001095651 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Common Stock | ||
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, 2021 | Dec. 31, 2020 | |
Real estate | |||
Real estate, at cost | [1] | $ 1,657,866 | $ 1,752,053 |
Less: accumulated depreciation | [1] | (300,942) | (267,772) |
Real estate, net | [1] | 1,356,924 | 1,484,281 |
Real estate available and held for sale | [1] | 1,983 | 5,212 |
Total real estate | [1] | 1,358,907 | 1,489,493 |
Net investment in leases ($9,136 and $10,871 of allowances as of September 30, 2021 and December 31, 2020, respectively) | [1] | 477,360 | 429,101 |
Land and development, net | [1] | 302,845 | 430,663 |
Loans receivable and other lending investments, net ($6,370 and $13,170 of allowances as of September 30, 2021 and December 31, 2020, respectively) | [1] | 405,509 | 732,330 |
Loan receivable held for sale | 42,683 | ||
Other investments | [1] | 1,419,766 | 1,176,560 |
Cash and cash equivalents | [1] | 298,886 | 98,633 |
Finance lease right-of-use asset | 142,615 | 143,727 | |
Accrued interest and operating lease income receivable, net | [1] | 5,046 | 10,061 |
Deferred operating lease income receivable, net | [1] | 66,002 | 58,128 |
Deferred expenses and other assets, net | [1] | 282,546 | 293,112 |
Total assets | [1] | 4,802,165 | 4,861,808 |
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities | [1] | 300,461 | 317,402 |
Finance lease liabilities | 152,629 | 150,520 | |
Liabilities associated with properties held for sale | [1] | 252 | 27 |
Loan participations payable, net | [1] | 42,501 | |
Debt obligations, net | [1] | 3,282,598 | 3,286,975 |
Total liabilities | [1] | 3,735,940 | 3,797,425 |
Commitments and contingencies (refer to Note 12) | [1] | ||
iStar Inc. shareholders' equity: | |||
Preferred Stock Series D, G and I, liquidation preference $25.00 per share (refer to Note 14) | [1] | 12 | 12 |
Common Stock, $0.001 par value, 200,000 shares authorized, 70,031 and 73,967 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | [1] | 70 | 74 |
Additional paid-in capital | [1] | 3,127,401 | 3,240,535 |
Accumulated deficit | [1] | (2,225,552) | (2,316,972) |
Accumulated other comprehensive loss (refer to Note 14) | [1] | (34,350) | (52,680) |
Total iStar Inc. shareholders' equity | [1] | 867,581 | 870,969 |
Noncontrolling interests | [1] | 198,644 | 193,414 |
Total equity | [1] | 1,066,225 | 1,064,383 |
Total liabilities and equity | [1] | $ 4,802,165 | $ 4,861,808 |
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for losses on net investment in leases at end of period | $ 9,136 | $ 10,871 |
Loans receivable and other lending investments, allowances | $ 6,370 | $ 13,170 |
Preferred stock, 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) | 70,031 | 73,967 |
Common Stock, shares outstanding (in shares) | 70,031 | 73,967 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Total revenues | $ 195,485 | $ 115,054 | $ 414,335 | $ 384,930 |
Costs and expenses: | ||||
Interest expense | 39,471 | 42,407 | 118,451 | 127,748 |
Depreciation and amortization | 14,856 | 14,621 | 44,971 | 43,407 |
General and administrative | 17,121 | 19,868 | 68,954 | 73,138 |
(Recovery of) provision for loan losses | (1,556) | (1,976) | (7,613) | 4,093 |
(Recovery of) provision for losses on net investment in leases | 131 | 175 | (1,735) | 2,001 |
Impairment of assets | 1,179 | 0 | 2,965 | 6,491 |
Other expense | 2,011 | 73 | 2,475 | 351 |
Total costs and expenses | 179,317 | 113,461 | 429,882 | 425,641 |
Income from sales of real estate | 25,611 | 6,055 | 28,433 | 6,118 |
Loss from operations before earnings from equity method investments and other items | 41,779 | 7,648 | 12,886 | (34,593) |
Loss on early extinguishment of debt, net | 0 | (7,924) | 0 | (12,038) |
Earnings (losses) from equity method investments | 89,209 | 6,805 | 114,675 | 26,003 |
Net income (loss) before income taxes | 130,988 | 6,529 | 127,561 | (20,628) |
Income tax benefit (expense) | 6 | (78) | 6 | (165) |
Net income (loss) | 130,994 | 6,451 | 127,567 | (20,793) |
Net (income) attributable to noncontrolling interests | (3,264) | (2,646) | (8,037) | (8,435) |
Net income (loss) attributable to iStar Inc. | 127,730 | 3,805 | 119,530 | (29,228) |
Preferred dividends | (5,874) | (5,874) | (17,622) | (17,622) |
Net income (loss) allocable to common shareholders - Basic | $ 121,856 | $ (2,069) | $ 101,908 | $ (46,850) |
Net loss allocable to common shareholders: | ||||
Basic (in dollars per share) | $ 1.71 | $ (0.03) | $ 1.40 | $ (0.61) |
Diluted (in dollars per share) | $ 1.51 | $ (0.03) | $ 1.30 | $ (0.61) |
Weighted average number of common shares: | ||||
Weighted average common shares outstanding for basic earnings per common share | 71,299 | 75,033 | 72,675 | 76,232 |
Diluted (in shares) | 80,487 | 75,033 | 78,402 | 76,232 |
Operating lease income | ||||
Revenues: | ||||
Total revenues | $ 44,392 | $ 46,370 | $ 137,381 | $ 140,529 |
Interest income | ||||
Revenues: | ||||
Total revenues | 7,951 | 14,270 | 27,574 | 46,925 |
Interest income from sales-type leases | ||||
Revenues: | ||||
Total revenues | 9,578 | 8,360 | 26,895 | 25,010 |
Other income | ||||
Revenues: | ||||
Total revenues | 40,195 | 25,552 | 64,549 | 56,212 |
Land development revenue | ||||
Revenues: | ||||
Total revenues | 93,369 | 20,502 | 157,936 | 116,254 |
Costs and expenses: | ||||
Cost of sales expense | 87,380 | 21,358 | 147,507 | 114,704 |
Real estate expense | ||||
Costs and expenses: | ||||
Cost of sales expense | $ 18,724 | $ 16,935 | $ 53,907 | $ 53,708 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 130,994 | $ 6,451 | $ 127,567 | $ (20,793) | |
Other comprehensive income (loss): | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | [1] | 2,683 | 2,371 | 7,507 | 5,792 |
Unrealized (losses) gains on available-for-sale securities | (539) | 19 | (913) | 1,195 | |
Unrealized gains (losses) on cash flow hedges | 273 | 197 | 11,483 | (30,930) | |
Other comprehensive income (loss) | 2,417 | 2,587 | 18,077 | (23,943) | |
Comprehensive income (loss) | 133,411 | 9,038 | 145,644 | (44,736) | |
Comprehensive (income) loss attributable to noncontrolling interests | (4,207) | (3,299) | (11,951) | (2,894) | |
Comprehensive income (loss) attributable to iStar Inc. | $ 129,204 | $ 5,739 | $ 133,693 | $ (47,630) | |
[1] | Amounts reclassified to “Interest expense” in the Company’s consolidated statements of operations for the three months ended September 30, 2021 and 2020 are $2,050 and $2,038 , respectively, and amounts reclassified to “Interest expense” in the Company’s consolidated statements of operations for the nine months ended September 30, 2021 and 2020 are $6,183 and $4,926 , respectively. Amounts reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the three months ended September 30, 2021 and 2020 are $633 and $333 , respectively, and amounts reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the nine months ended September 30, 2021 and 2020 are $1,324 and $866 , respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest expense | $ 39,471 | $ 42,407 | $ 118,451 | $ 127,748 |
Earnings (losses) from equity method investments | 89,209 | 6,805 | 114,675 | 26,003 |
Other expenses | 2,011 | 73 | 2,475 | 351 |
Reclassification out of Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge | ||||
Interest expense | 2,050 | 2,038 | 6,183 | 4,926 |
Earnings (losses) from equity method investments | $ 633 | $ 333 | $ 1,324 | $ 866 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In CapitalPeriod of Adoption, Adjustment | Additional Paid-In Capital | Retained Earnings (Deficit)Period of Adoption, Adjustment | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Period of Adoption, Adjustment | Total | |
Beginning Balance at Dec. 31, 2019 | $ 12 | $ 78 | $ 3,284,877 | $ (12,382) | $ (2,205,838) | $ (38,707) | $ 197,538 | $ (12,382) | $ 1,237,960 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (17,622) | (17,622) | |||||||||
Dividends declared-common | (24,598) | (24,598) | |||||||||
Issuance of stock/restricted stock unit amortization, net(2) | 1 | 3,985 | 2,469 | 6,455 | |||||||
Net income (loss) | (29,228) | 8,435 | (20,793) | ||||||||
Change in accumulated other comprehensive income (loss) | (18,404) | (5,539) | (23,943) | ||||||||
Repurchase of stock | (5) | (41,409) | (41,414) | ||||||||
Contributions from noncontrolling interests | 760 | 760 | |||||||||
Distributions to noncontrolling interests | (10,975) | (10,975) | |||||||||
Ending Balance at Sep. 30, 2020 | 12 | 74 | 3,247,453 | (2,289,668) | (57,111) | 192,688 | 1,093,448 | ||||
Beginning Balance at Jun. 30, 2020 | 12 | 76 | 3,260,173 | (2,279,284) | (59,045) | 191,853 | 1,113,785 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (5,874) | (5,874) | |||||||||
Dividends declared-common | (8,315) | (8,315) | |||||||||
Issuance of stock/restricted stock unit amortization, net(2) | 903 | 894 | 1,797 | ||||||||
Net income (loss) | 3,805 | 2,646 | 6,451 | ||||||||
Change in accumulated other comprehensive income (loss) | 1,934 | 653 | 2,587 | ||||||||
Repurchase of stock | (2) | (13,623) | (13,625) | ||||||||
Contributions from noncontrolling interests | 444 | 444 | |||||||||
Distributions to noncontrolling interests | (3,802) | (3,802) | |||||||||
Ending Balance at Sep. 30, 2020 | 12 | 74 | 3,247,453 | (2,289,668) | (57,111) | 192,688 | 1,093,448 | ||||
Beginning Balance at Dec. 31, 2020 | 12 | 74 | $ (25,869) | 3,240,535 | $ 15,850 | (2,316,972) | (52,680) | 193,414 | $ (10,019) | 1,064,383 | [1] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (17,622) | (17,622) | |||||||||
Dividends declared-common | (26,338) | (26,338) | |||||||||
Issuance of stock/restricted stock unit amortization, net(2) | 4,929 | 2,645 | 7,574 | ||||||||
Net income (loss) | 119,530 | 8,037 | 127,567 | ||||||||
Change in accumulated other comprehensive income (loss) | 18,077 | ||||||||||
Change in accumulated other comprehensive income (loss) | 18,330 | 3,913 | 22,243 | ||||||||
Repurchase of stock | (4) | (91,859) | (91,863) | ||||||||
Contributions from noncontrolling interests | 1,026 | 1,026 | |||||||||
Distributions to noncontrolling interests | (335) | (10,317) | (10,652) | ||||||||
Change to noncontrolling interest | (74) | (74) | |||||||||
Ending Balance at Sep. 30, 2021 | 12 | 70 | 3,127,401 | (2,225,552) | (34,350) | 198,644 | 1,066,225 | [1] | |||
Beginning Balance at Jun. 30, 2021 | 12 | 72 | 3,185,748 | (2,338,454) | (35,824) | 197,152 | 1,008,706 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (5,874) | (5,874) | |||||||||
Dividends declared-common | (8,954) | (8,954) | |||||||||
Issuance of stock/restricted stock unit amortization, net(2) | 1,158 | 1,107 | 2,265 | ||||||||
Net income (loss) | 127,730 | 3,264 | 130,994 | ||||||||
Change in accumulated other comprehensive income (loss) | 2,417 | ||||||||||
Change in accumulated other comprehensive income (loss) | 1,474 | 943 | 2,417 | ||||||||
Repurchase of stock | (2) | (59,505) | (59,507) | ||||||||
Contributions from noncontrolling interests | 169 | 169 | |||||||||
Distributions to noncontrolling interests | (3,917) | (3,917) | |||||||||
Change to noncontrolling interest | (74) | (74) | |||||||||
Ending Balance at Sep. 30, 2021 | $ 12 | $ 70 | $ 3,127,401 | $ (2,225,552) | $ (34,350) | $ 198,644 | $ 1,066,225 | [1] | |||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared - common (in dollars per share) | $ 0.125 | $ 0.11 | $ 0.36 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 127,567 | $ (20,793) | |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | |||
(Recovery of) provision for loan losses | (7,613) | 4,093 | |
(Recovery of) provision for losses on net investment in leases | (1,735) | 2,001 | |
Impairment of assets | 2,965 | 6,491 | |
Depreciation and amortization | 44,971 | 43,407 | |
Non-cash interest income from sales-type leases | (22,243) | (15,681) | |
Stock-based compensation expense | 23,300 | 26,675 | |
Amortization of discounts/premiums and deferred financing costs on debt obligations, net | 5,920 | 10,055 | |
Amortization of discounts/premiums and deferred interest on loans, net | (11,730) | (24,360) | |
Deferred interest on loans received | 24,394 | 15,275 | |
Earnings from equity method investments | (114,675) | (26,003) | |
Distributions from operations of other investments | 37,433 | 17,146 | |
Deferred operating lease income | (7,874) | (11,276) | |
Income from sales of real estate | (28,433) | (6,118) | |
Land development revenue in excess of cost of sales | (10,429) | (1,550) | |
Loss on early extinguishment of debt, net | 0 | 12,038 | |
Other operating activities, net | (14,031) | (21,207) | |
Changes in assets and liabilities: | |||
Originations and fundings of loans receivable, net | (42,000) | 0 | |
Changes in accrued interest and operating lease income receivable | 5,259 | 352 | |
Changes in deferred expenses and other assets, net | (9,186) | (6,079) | |
Changes in accounts payable, accrued expenses and other liabilities | (6,601) | (10,644) | |
Cash flows used in operating activities | (4,741) | (6,178) | |
Cash flows from investing activities: | |||
Originations and fundings of loans receivable, net | (71,921) | (80,635) | |
Capital expenditures on real estate assets | (5,835) | (11,661) | |
Capital expenditures on land and development assets | (15,603) | (33,488) | |
Acquisition of real estate, net investments in leases and land assets | (42,000) | 0 | |
Repayments of and principal collections on loans receivable and other lending investments, net | 226,065 | 151,612 | |
Net proceeds from sales of loans receivable | 122,609 | 0 | |
Net proceeds from sales of real estate | 140,576 | 42,684 | |
Net proceeds from sales of land and development assets | 154,094 | 113,670 | |
Net proceeds from sales of other investments | 3,000 | 0 | |
Distributions from other investments | 34,926 | 12,139 | |
Contributions to and acquisition of interest in other investments | (171,005) | (194,775) | |
Other investing activities, net | (1,184) | (5,214) | |
Cash flows provided by (used in) investing activities | 373,722 | (5,668) | |
Cash flows from financing activities: | |||
Borrowings from debt obligations | 25,000 | 737,913 | |
Repayments and repurchases of debt obligations | (44,534) | (824,740) | |
Preferred dividends paid | (17,622) | (17,622) | |
Common dividends paid | (26,149) | (24,397) | |
Repurchase of stock | (88,946) | (47,272) | |
Payments for debt prepayment or extinguishment costs | 0 | (8,567) | |
Payments for deferred financing costs | (75) | (7,475) | |
Payments for withholding taxes upon vesting of stock-based compensation | (2,210) | (2,001) | |
Contributions from noncontrolling interests | 233 | 760 | |
Distributions to noncontrolling interests | (10,317) | (10,975) | |
Cash flows (used in) provided by financing activities | (164,620) | (204,376) | |
Effect of exchange rate changes on cash | (126) | (10) | |
Changes in cash, cash equivalents and restricted cash | 204,235 | (216,232) | |
Cash, cash equivalents and restricted cash at beginning of period | 150,566 | 352,206 | |
Cash, cash equivalents and restricted cash at end of period | 354,801 | 135,974 | |
Reconciliation of cash and cash equivalents and restricted cash presented on the consolidated statements of cash flows | |||
Cash and cash equivalents | 298,886 | [1] | 88,187 |
Restricted cash included in deferred expenses and other assets, net | 55,915 | 47,787 | |
Cash, cash equivalents and restricted cash at end of period | 354,801 | 135,974 | |
Supplemental disclosure of non-cash investing and financing activity: | |||
Fundings and (repayments) of loan receivables and loan participations, net | (42,501) | 6,160 | |
Accounts payable for capital expenditures on real estate assets | 1,125 | ||
Contributions to other investments | 2,000 | ||
Accrued repurchase of stock | $ 3,117 | $ 499 | |
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Note 1—Business and Organization Business Organization |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Note 2—Basis of Presentation and Principles of Consolidation Basis of Presentation 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 Consolidated VIEs December 31, 2020. The following table presents the assets and liabilities of the Company’s consolidated VIEs as of September 30, 2021 and December 31, 2020 ($ in thousands): As of September 30, 2021 December 31, 2020 ASSETS Real estate Real estate, at cost $ 901,254 $ 899,110 Less: accumulated depreciation (80,409) (61,917) Real estate, net 820,845 837,193 Land and development, net 190,929 240,137 Other investments 26 35 Cash and cash equivalents 25,114 22,571 Accrued interest and operating lease income receivable, net 1,282 1,472 Deferred operating lease income receivable, net 36,665 29,428 Deferred expenses and other assets, net 119,127 122,591 Total assets $ 1,193,988 $ 1,253,427 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 74,307 $ 115,581 Debt obligations, net 478,567 488,719 Total liabilities 552,874 604,300 Unconsolidated VIEs |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3—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, 2021. The Company adopted 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”) on January 1, 2021 using the modified retrospective approach method. Under the modified retrospective approach, the Company recorded a cumulative effect adjustment on January 1, 2021 by increasing “Debt obligations, net” by $10.0 million, increasing retained earnings by $15.9 million and decreasing “Additional paid-in capital” by $25.9 million with respect to its 3.125% senior convertible notes (refer to Note 11). Periods presented that are prior to the adoption date of January 1, 2021 will not be adjusted. In addition, upon the adoption of ASU 2020-06, the Company is required to use a modified if-converted method when calculating earnings per share. The Company will settle conversions of the 3.125% senior convertible notes by paying the conversion value in cash up to the original principal amount of the notes being converted and shares of common stock to the extent of any conversion premium. The if-converted method is modified so that interest expense is not added back to the numerator, and the denominator only includes the net number of incremental shares that would be issued upon conversion. For the remainder of the Company’s significant accounting policies, refer to the Company’s 2020 Annual Report. New Accounting Pronouncements — |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate | Note 4—Real Estate The Company’s real estate assets were comprised of the following ($ in thousands): Net Operating Lease (1) Properties Total As of September 30, 2021 Land, at cost $ 188,418 $ 6,830 $ 195,248 Buildings and improvements, at cost 1,355,984 106,634 1,462,618 Less: accumulated depreciation (280,521) (20,421) (300,942) Real estate, net (1) 1,263,881 93,043 1,356,924 Real estate available and held for sale (2) — 1,983 1,983 Total real estate $ 1,263,881 $ 95,026 $ 1,358,907 As of December 31, 2020 Land, at cost $ 188,418 $ 103,530 $ 291,948 Buildings and improvements, at cost 1,353,683 106,422 1,460,105 Less: accumulated depreciation (250,198) (17,574) (267,772) Real estate, net (1) 1,291,903 192,378 1,484,281 Real estate available and held for sale (2) — 5,212 5,212 Total real estate $ 1,291,903 $ 197,590 $ 1,489,493 (1) As of September 30, 2021 and December 31, 2020, real estate, net included $741.6 million and $755.5 million, respectively, of real estate of the Net Lease Venture (refer to Net Lease Venture below). (2) As of September 30, 2021 and December 31, 2020, the Company had $2.0 million and $5.2 million, respectively, of residential condominiums available for sale in its operating properties portfolio. Net Lease Venture Dispositions— recorded in “Income from sales of real estate” in the Company’s consolidated statements of operations. 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. Impairments— Tenant Reimbursements— and nine and $ million and $ million for the three and nine months ended September 30, 2020, respectively Allowance for Doubtful Accounts— Future Minimum Operating Lease Payments Net Operating Year Lease Properties 2021 (remaining three months) $ 32,800 $ 1,455 2022 133,616 6,226 2023 125,330 5,966 2024 119,714 5,913 2025 123,248 5,318 Thereafter 1,385,609 7,825 |
Net Investment in Leases
Net Investment in Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Net Investment in Leases | Note 5—Net Investment in Leases In June 2021, the Company acquired two parcels leasehold 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 was 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 $44.1 million in “Loans receivable and other lending investments, net” on its consolidated balance sheet (refer to Note 7). For the three and nine months ended September 30, 2021 Dispositions— The Company’s net investment in leases were comprised of the following as of September 30, 2021 and December 31, 2020 ($ in thousands): September 30, 2021 December 31, 2020 Total undiscounted cash flows $ 1,538,758 $ 1,020,921 Unguaranteed estimated residual value 367,804 345,284 Present value discount (1,420,066) (926,233) Allowance for losses on net investment in leases (9,136) (10,871) Net investment in leases (1) $ 477,360 $ 429,101 (1) As of September 30, 2021 and December 31, 2020, 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, 2021, the weighted average risk rating on the Company’s net investment in leases was 2.0 . Future Minimum Lease Payments under Sales-type Leases Amount 2021 (remaining three months) $ 7,372 2022 30,590 2023 43,272 2024 43,029 2025 31,955 Thereafter 1,382,540 Total undiscounted cash flows $ 1,538,758 Allowance for Losses on Net Investment in Leases and nine Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Allowance for losses on net investment in leases at beginning of period $ 9,005 $ 10,937 $ 10,871 $ — Initial allowance recorded upon adoption of new accounting standard (1) — — — 9,111 Provision for (recovery of) losses on net investment in leases (2) 131 176 (1,735) 2,002 Allowance for losses on net investment in leases at end of period $ 9,136 $ 11,113 $ 9,136 $ 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. (2) During the three and nine months ended September 30, 2021, the Company recorded a provision for (recovery of) losses on net investment in leases of $0.1 million and ($1.7) million, respectively. The provision for losses for the three months ended September 30, 2021 resulted from market changes since June 30, 2021 and the recovery of losses for the nine months ended September 30, 2021 was due primarily to asset sales and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. During the three and nine months ended September 30, 2020, the Company recorded a provision for losses on net investment in leases of $0.2 million and $2.0 million, respectively, due primarily to the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13 . |
Land and Development
Land and Development | 9 Months Ended |
Sep. 30, 2021 | |
Land And Development [Abstract] | |
Land and Development | Note 6—Land and Development The Company’s land and development assets were comprised of the following ($ in thousands): As of September 30, December 31, 2021 2020 Land and land development, at cost $ 313,428 $ 441,201 Less: accumulated depreciation (10,583) (10,538) Total land and development, net $ 302,845 $ 430,663 Dispositions— Impairments— |
Loans Receivable and Other Lend
Loans Receivable and Other Lending Investments, net | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Receivable and Other Lending Investments, net | Note 7—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, 2021 December 31, 2020 Construction loans Senior mortgages $ 191,697 $ 449,733 Corporate/Partnership loans 3,516 65,100 Subtotal - gross carrying value of construction loans (1) 195,213 514,833 Loans Senior mortgages 15,181 35,922 Corporate/Partnership loans 17,941 20,567 Subordinate mortgages 12,248 11,640 Subtotal - gross carrying value of loans 45,370 68,129 Other lending investments Financing receivables (refer to Note 5) 48,503 46,549 Held-to-maturity debt securities 95,258 90,715 Available-for-sale debt securities 27,535 25,274 Subtotal - other lending investments 171,296 162,538 Total gross carrying value of loans receivable and other lending investments 411,879 745,500 Allowance for loan losses (6,370) (13,170) Total loans receivable and other lending investments, net $ 405,509 $ 732,330 (1) As of September 30, 2021, 98% of gross carrying value of construction loans had completed construction. Allowance for Loan Losses General Allowance Held to Construction Maturity Debt Financing Specific Three Months Ended September 30, 2021 Loans Loans Securities Receivables Allowance Total Allowance for loan losses at beginning of period $ 1,640 $ 1,619 $ 2,393 $ 893 $ 590 $ 7,135 (Recovery of) provision for loan losses (1) (149) (865) 145 54 50 (765) Allowance for loan losses at end of period $ 1,491 $ 754 $ 2,538 $ 947 $ 640 $ 6,370 Three Months Ended September 30, 2020 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, 2021 and 2020, the Company recorded a provision for (recovery of) loan losses of ($1.6) million and ( $2.0 ) million, respectively, in its consolidated statements of operations. The recovery in 2021 was due primarily to the repayment of loans during the three months ended September 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since June 30, 2021. Of this amount, $0.9 million related to a recovery of loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities." The recovery in 2020 resulted 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 loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." Changes in the Company’s allowance for loan losses were as follows for the nine months ended September 30, 2021 and 2020 ($ in thousands): General Allowance Held to Construction Maturity Debt Financing Specific Nine Months Ended September 30, 2021 Loans Loans Securities Receivables Allowance Total Allowance for loan losses at beginning of period $ 6,541 $ 1,643 $ 3,093 $ 1,150 $ 743 $ 13,170 Recovery of loan losses (1) (5,050) (889) (555) (203) (103) (6,800) Allowance for loan losses at end of period $ 1,491 $ 754 $ 2,538 $ 947 $ 640 $ 6,370 Nine Months Ended September 30, 2020 Allowance for loan losses at beginning of period $ 6,668 $ 265 $ — $ — $ 21,701 $ 28,634 Adoption of new accounting standard (2) (353) 98 20 964 — 729 Provision for loan losses (1) 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) During the nine months ended September 30, 2021 and 2020, the Company recorded a provision for (recovery of) loan losses of ($7.6) million and $4.1 million, respectively, in its consolidated statements of operations. The recovery in 2021 was due primarily to the repayment of loans during the nine months ended September 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. Of this amount, $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 .” The provision for loan losses in 2020 resulted 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." (2) 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, of which $2.5 million related to expected credit losses for unfunded loan commitments and was recorded in “Accounts payable, accrued expenses and other liabilities.” The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of September 30, 2021 and December 31, 2020 ($ in thousands): Individually Collectively Evaluated for Evaluated for Impairment (1) Impairment Total As of September 30, 2021 Construction loans (2) $ 58,819 $ 136,394 $ 195,213 Loans (2) — 45,370 45,370 Financing receivables — 48,503 48,503 Held-to-maturity debt securities — 95,258 95,258 Available-for-sale debt securities (3) — 27,535 27,535 Less: Allowance for loan losses (640) (5,730) (6,370) Total $ 58,179 $ 347,330 $ 405,509 As of December 31, 2020 Construction loans (2) $ 53,305 $ 461,528 $ 514,833 Loans (2) — 68,129 68,129 Financing receivables — 46,549 46,549 Held-to-maturity debt securities — 90,715 90,715 Available-for-sale debt securities (3) — 25,274 25,274 Less: Allowance for loan losses (743) (12,427) (13,170) Total $ 52,562 $ 679,768 $ 732,330 (1) The carrying value of this loan includes an unamortized discount of $0.8 million and $0.8 million as of September 30, 2021 and December 31, 2020, respectively. The Company’s loans individually evaluated for impairment represent 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 $0.2 million and $2.3 million as of September 30, 2021 and December 31, 2020, respectively. (3) Available-for-sale debt securities are evaluated for impairment under ASC 326-30. Credit Characteristics The Company’s amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, as of September 30, 2021 were as follows ($ in thousands): Year of Origination 2021 2020 2019 2018 2017 Prior to 2017 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — 11,900 — — 11,900 2.5 — — — — — — — 3.0 — — — 109,137 — 3,281 112,418 3.5 — — — 23,741 — — 23,741 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ — $ — $ 144,778 $ — $ 3,281 $ 148,059 Corporate/partnership loans Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — 3,516 — — 3,516 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — 17,941 — — 17,941 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ 21,457 $ — $ — $ 21,457 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 12,248 12,248 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 12,248 $ 12,248 Financing receivables Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — 48,503 — — — 48,503 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ 48,503 $ — $ — $ — $ 48,503 Total $ — $ — $ 48,503 $ 166,235 $ — $ 15,529 $ 230,267 (1) As of September 30, 2021, excludes $58.8 million for one loan on non-accrual status. The Company’s amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Less Than Greater or Equal Than Total Current to 90 Days 90 Days Past Due Total As of September 30, 2021 Senior mortgages $ 148,059 $ — $ 58,819 58,819 $ 206,878 Corporate/Partnership loans 21,457 — — — 21,457 Subordinate mortgages 12,248 — — — 12,248 Total $ 181,764 $ — $ 58,819 $ 58,819 $ 240,583 As of December 31, 2020 Senior mortgages $ 443,154 $ 42,501 $ — $ 42,501 $ 485,655 Corporate/Partnership loans 42,721 42,946 — 42,946 85,667 Subordinate mortgages 11,640 — — — 11,640 Total $ 497,515 $ 85,447 $ — $ 85,447 $ 582,962 Impaired Loans As of September 30, 2021 As of December 31, 2020 Unpaid Unpaid Amortized Principal Related Amortized Principal Related Cost Balance Allowance Cost Balance Allowance With an allowance recorded: Senior mortgages (1) $ 58,819 $ 58,069 $ (640) $ 53,305 $ 52,552 $ (743) Total $ 58,819 $ 58,069 $ (640) $ 53,305 $ 52,552 $ (743) (1) The Company has one non-accrual loan as of September 30, 2021 and December 31, 2020 that is considered impaired and included in the table above. The Company did no t record any interest income on impaired loans for the nine months ended September 30, 2021 and 2020. Loans receivable held for sale In June 2021, the Company acquired a parcel of land for $42.0 million and simultaneously entered into a Ground Lease (refer to Note 5). The Company also concurrently entered into an agreement pursuant to which SAFE would acquire the Ground Lease from the Company. The Ground Lease was entered into with the seller of the land and did not qualify for sale leaseback accounting, and as such, was accounted for as a financing transaction and $42.0 million was recorded in “Loans receivable held for sale” on the Company’s consolidated balance sheets. Other lending investments Net Net Amortized Unrealized Estimated Carrying Face Value Cost Basis Gain Fair Value Value As of September 30, 2021 Available-for-Sale Securities Municipal debt securities $ 23,855 $ 23,855 $ 3,680 $ 27,535 $ 27,535 Held-to-Maturity Securities Debt securities 100,000 95,258 — 95,258 95,258 Total $ 123,855 $ 119,113 $ 3,680 $ 122,793 $ 122,793 As of December 31, 2020 Available-for-Sale Securities Municipal debt securities $ 20,680 $ 20,680 $ 4,594 $ 25,274 $ 25,274 Held-to-Maturity Securities Debt securities 100,000 90,715 — 90,715 90,715 Total $ 120,680 $ 111,395 $ 4,594 $ 115,989 $ 115,989 As of September 30, 2021, the contractual maturities of the Company’s securities were as follows ($ in thousands): Held-to-Maturity Debt Securities Available-for-Sale Debt Securities Amortized Estimated Amortized Estimated Cost Basis Fair Value Cost Basis Fair Value Maturities Within one year $ — $ — $ — $ — After one year through 5 years 95,258 95,258 — — After 5 years through 10 years — — — — After 10 years — — 23,855 27,535 Total $ 95,258 $ 95,258 $ 23,855 $ 27,535 |
Other Investments
Other Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Note 8—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 Earnings (Losses) from Carrying Value Equity Method Investments (1) Equity Method Investments (1) as of For the Three Months Ended For the Nine Months Ended September 30, December 31, September 30, September 30, 2021 2020 2021 2020 2021 2020 Real estate equity investments Safehold Inc. ("SAFE") (2) $ 1,113,333 $ 937,712 $ 73,475 $ 9,331 $ 94,590 $ 36,905 iStar Net Lease II LLC ("Net Lease Venture II") 100,471 78,998 1,414 811 4,014 1,568 Other real estate equity investments 44,196 89,939 11,965 (3,542) 9,902 (10,517) Subtotal 1,258,000 1,106,649 86,854 6,600 108,506 27,956 Other strategic investments (3) 161,766 69,911 2,355 205 6,169 (1,953) Total $ 1,419,766 $ 1,176,560 $ 89,209 $ 6,805 $ 114,675 $ 26,003 (1) For the three months ended September 30, 2021 and 2020, earnings (losses) from equity method investments is net of the Company’s pro rata share of $5.1 million and $4.6 million, respectively, of depreciation expense and $18.5 million and $14.6 million, respectively, of interest expense. For the nine months ended September 30, 2021 and 2020, earnings (losses) from equity method investments is net of the Company’s pro rata share of $16.2 million and $13.4 million, respectively, of depreciation expense and $51.7 million and $44.0 million, respectively, of interest expense. (2) As of September 30, 2021, the Company owned 36.0 million shares of SAFE common stock which, based on the closing price of $71.89 on September 30, 2021, had a market value of $2.6 billion. Pursuant to ASC 323-10-40-1, an equity method investor shall account for a share issuance by an investee as if the investor had sold a proportionate share of its investment. Any gain or loss to the investor resulting from an investee’s share issuance shall be recognized in earnings. For the three months ended September 30, 2021, equity in earnings includes a dilution gain of $60.2 million resulting from a SAFE equity offering. For the nine months ended September 30, 2021 and 2020, equity in earnings includes dilution gains of $60.7 million and $7.9 million, respectively, resulting from SAFE equity offerings. (3) During the three and nine months ended September 30, 2021 and 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 $19.1 million for the three and nine months ended September 30, 2021, respectively, and aggregate mark-to-market gains of $14.0 million and $23.9 million for the three and nine months ended September30, 2020, respectively, in “Other income” in the Company’s consolidated statements of operations. Safehold Inc. 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. 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 until January 2022; ● subjects the Company to certain standstill provisions; and ● provides the Company certain preemptive rights. In September 2021, the Company acquired 657,894 shares of SAFE’s common stock in a private placement for $50.0 million. 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 with SAFE: ● 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, 2021 and 2020, the Company recorded $3.6 million and $3.2 million, respectively, of management fees pursuant to its management agreement with SAFE. During the nine months ended September 30, 2021 and 2020, the Company recorded $10.6 million and $9.3 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, 2021 and 2020, the Company recognized $1.9 million and $1.3 million, respectively, of expense reimbursements pursuant to its management agreement with SAFE. During the nine months ended September 30, 2021 and 2020, the Company recognized $5.6 million and $3.8 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 October 2017, the Company closed on a 99-year and $ million, respectively, of interest income on the loan. and recognized a gain of $6.1 million in "Income from sales of real estate" in connection with the sale 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 was for the conversion of an office building into a multi-family property. The loan was repaid during the fourth quarter 2020. During the three and nine months ended September 30, 2020, the Company recorded $0.3 million and $0.8 million, respectively, of interest income on the loan. 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. In February 2021, the Company provided a $50.0 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan was for the Ground Lease tenant’s recapitalization of a hotel property. The Company received $1.9 million of consideration from SAFE in connection with this transaction. The Company sold the loan in July 2021 and recorded no gain or loss on the sale. During the three and nine months ended September 30, 2021, the Company recorded $0.4 million and $2.9 million, respectively, of interest income on the loan. In March 2021, the Company acquired land and simultaneously structured and entered into with the seller a Ground Lease on which a multi-family project will be constructed. At closing, the Company entered into an agreement with SAFE pursuant to which, subject to certain conditions being met, SAFE would acquire the ground lessor entity from the Company. The Company sold the ground lessor entity to SAFE in September 2021 and recognized no gain or loss on the sale (refer to Note 7 - Loans receivable held for sale). The Company also committed to provide a $75.0 million construction loan to the Ground Lease tenant. The Company received $2.7 million of consideration from SAFE in connection with this transaction. In September 2021, the construction loan commitment and the $2.7 million of consideration was transferred to an entity in which the Company has a 53.0% noncontrolling equity interest (refer to “Other strategic investments” below). In June 2021, the Company sold to SAFE its rights under a purchase option agreement for $1.2 million. The Company had previously acquired such purchase option agreement from a third-party property owner for $1.0 million and incurred $0.2 million of expenses. Under the option agreement, upon certain conditions being met by an outside developer who may become the Ground Lease tenant, SAFE has the right to acquire for $215.0 million a property and hold a Ground Lease under approximately 1.1 million square feet of office space that may be developed on the property. No gain or loss was recognized by the Company as a result of the sale. In June 2021, the Company and SAFE entered into two agreements pursuant to each of which SAFE would acquire land and a related Ground Lease originated by the Company when certain construction related conditions are met by a specified time period. The purchase price to be paid for each is $42.0 million, plus an amount necessary for the Company to achieve the greater of a 1.25x multiple and a 9% return on its investment. In addition, each Ground Lease provides for a leasehold improvement allowance up to a maximum of $83.0 million, which obligation would be assumed by SAFE upon acquisition. If certain construction conditions are not met within a specified time period, SAFE will have no obligation to acquire the Ground Leases or fund the leasehold improvement allowances. There can be no assurance that the conditions to closing will be satisfied and that SAFE will acquire the properties and Ground Leases from the Company. Net Lease Venture II Other real estate equity investments In August 2018, the Company provided a mezzanine loan with a principal balance of $33.0 million as of September 30, 2021 and December 31, 2020 to an unconsolidated entity in which the Company owns a 50% equity interest. The loan matures in August 2022. As of September 30, 2021, and December 31, 2020, 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, 2021 and 2020, the Company recorded $0.6 million and $0.6 million, respectively, of interest income on the mezzanine loan. During the nine months ended September 30, 2021 and 2020, the Company recorded $ million and $ million, respectively, of interest income on the mezzanine loan. Other strategic investments In January 2021, the Company sold two loans for $83.4 million to a newly formed entity in which the Company has a 53.0% noncontrolling equity interest. The Company did not recognize any gain or loss on the sales. In September 2021, the Company transferred a $75.0 million construction loan commitment to this entity. The Company does not have a controlling interest in this entity due to the substantive participating rights of its partner. The Company accounts for this investment as an equity method investment and receives a fixed annual fee in exchange for managing the entity. Summarized investee financial information Revenues Expenses Net Income Attributable to Parent For the Nine Months Ended September 30, 2021 SAFE $ 135,001 $ 88,585 $ 51,844 For the Nine Months Ended September 30, 2020 SAFE $ 115,518 $ 73,821 $ 44,024 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Note 9—Other Assets and Other Liabilities Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of September 30, 2021 December 31, 2020 Intangible assets, net (1) $ 146,588 $ 156,041 Restricted cash 55,915 51,933 Operating lease right-of-use assets (2) 43,799 48,891 Other assets (3) 17,572 19,453 Other receivables 11,052 10,881 Leasing costs, net (4) 4,936 2,340 Corporate furniture, fixtures and equipment, net (5) 1,843 2,024 Deferred financing fees, net 841 1,549 Deferred expenses and other assets, net $ 282,546 $ 293,112 (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 $50.8 million and $44.4 million as of September 30, 2021 and December 31, 2020, respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company’s consolidated statements of operations by $0.5 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.1 million and $1.0 million for the nine months ended September 30, 2021 and 2020, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $ 2.8 million and $ 2.6 million for the three months ended September 30, 2021 and 2020, respectively, and $ 8.6 million and $ 7.9 million for the nine months ended September 30, 2021 and 2020, respectively. These amounts are included in “Depreciation and amortization” in the Company’s consolidated statements of operations. As of September 30, 2021, the weighted average remaining amortization period for the Company’s intangible assets was approximately 16.2 years. (2) Right-of-use lease assets relate primarily to the Company’s leases of office space. Right-of use lease assets initially equal the lease liability. 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, 2021 and 2020, the Company recognized $1.2 million and $1.2 million, respectively, in "General and administrative" and $0.9 million and $0.9 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. During the nine months ended September 30, 2021 and 2020, the Company recognized $3.7 million and $3.4 million, respectively, in "General and administrative" and $2.7 million and $2.6 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. (3) Other assets primarily includes prepaid expenses, deposits for certain real estate assets and management fees and expense reimbursements due from SAFE (refer to Note 8). (4) Accumulated amortization of leasing costs was $2.1 million and $2.6 million as of September 30, 2021 and December 31, 2020, respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $14.7 million and $14.3 million as of September 30, 2021 and December 31, 2020, respectively. Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of September 30, 2021 December 31, 2020 Other liabilities (1) $ 65,318 91,513 Accrued expenses 112,223 94,724 Intangible liabilities, net (2) 46,870 48,738 Operating lease liabilities (see table above) 47,111 50,072 Accrued interest payable 28,939 32,355 Accounts payable, accrued expenses and other liabilities $ 300,461 $ 317,402 (1) As of September 30, 2021 and December 31, 2020, other liabilities includes $20.7 million and $36.9 million, respectively, of deferred income. As of September 30, 2021 and December 31, 2020, other liabilities includes $11.7 million and $19.0 million, respectively, of derivative liabilities. As of September 30, 2021 and December 31, 2020, other liabilities includes $0.1 million and $1.0 million, respectively, 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 $9.0 million and $7.5 million as of September 30, 2021 and December 31, 2020, respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.6 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $ 1.9 million and $ 1.9 million for the nine months ended September 30, 2021 and 2020, respectively. |
Loan Participations Payable, ne
Loan Participations Payable, net | 9 Months Ended |
Sep. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Loan Participations Payable, net | Note 10—Loan Participations Payable, net The Company had one loan participation payable with a carrying value of $42.5 million and an interest rate of 6.0% as of December 31, 2020. The loan was repaid in the first quarter 2021. Loan participations represent transfers of financial assets that did not meet the sales criteria established under ASC Topic 860 and are accounted for as loan participations payable, net as of December 31, 2020. As of December 31, 2020, the corresponding loan receivable balance was $42.5 million and is included in “Loans receivable and other lending investments, net” on the Company’s consolidated balance sheets. The principal and interest due on loan participations payable are paid from cash flows of the corresponding loans receivable, which serve as collateral for the participations. |
Debt Obligations, net
Debt Obligations, net | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations, net | Note 11—Debt Obligations, net The Company’s debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled September 30, 2021 December 31, 2020 Interest Rates Maturity Date Secured credit facilities and mortgages: Revolving Credit Facility $ — $ — 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 701,541 721,075 1.63% - 7.19 % (3) Total secured credit facilities and mortgages (4) 1,193,416 1,212,950 Unsecured notes: 3.125% senior convertible notes (5) 287,500 287,500 3.125 % September 2022 4.75% senior notes (6) 775,000 775,000 4.75 % October 2024 4.25% senior notes (7) 550,000 550,000 4.25 % August 2025 5.50% senior notes (8) 400,000 400,000 5.50 % February 2026 Total unsecured notes 2,012,500 2,012,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50 % October 2035 Total debt obligations 3,305,916 3,325,450 Debt discounts and deferred financing costs, net (9) (23,318) (38,475) Total debt obligations, net (10) $ 3,282,598 $ 3,286,975 (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, 2021, the weighted average interest rate of these loans is 4.4% , inclusive of the effect of interest rate swaps. (4) As of September 30, 2021, $2.0 billion net carrying value of assets served as collateral for the Company’s secured debt obligations. (5) 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, 2021 was 71.5797 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $13.97 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. As of December 31, 2020, the carrying value of the 3.125% Convertible Notes was $275.1 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $10.2 million, net of fees. Upon the adoption of ASU 2020-06 on January 1, 2021, the Company reclassed the unamortized discount to shareholders equity (refer to Note 3). During the three months ended September 30, 2021 and 2020, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and during the three months ended September 30, 2020, the Company recognized $1.3 million of discount amortization on the 3.125% Convertible Notes. During the nine months ended September 30, 2021 and 2020, the Company recognized $6.7 million and $6.7 million, respectively, of contractual interest and during the nine months ended September 30, 2020, the Company recognized $3.9 million of discount amortization on the 3.125% Convertible Notes. The effective interest rate for the three and nine months ended September 30, 2020 was 5.2% . (6) The Company can prepay these senior notes without penalty beginning July 1, 2024. (7) The Company can prepay these senior notes without penalty beginning May 1, 2025. (8) The Company can prepay these senior notes without penalty beginning August 15, 2024. (9) On January 1, 2021, the Company adopted ASU 2020-06 and reclassed $10.0 million of debt discount and unamortized fees from the 3.125% Convertible Notes to shareholders’ equity on the Company’s consolidated balance sheet (refer to Note 3). (10) The Company capitalized interest relating to development activities of $ 0.2 million and $ 0.5 million during the three months ended September 30, 2021 and 2020, respectively, and $ 0.7 million and $ 1.6 million during the nine months ended September 30, 2021 and 2020, respectively. Future Scheduled Maturities Unsecured Debt Secured Debt Total 2021 (remaining three months) $ — $ 95,495 $ 95,495 2022 287,500 95,324 382,824 2023 — 491,875 491,875 2024 775,000 — 775,000 2025 550,000 269,780 819,780 Thereafter 500,000 240,942 740,942 Total principal maturities 2,112,500 1,193,416 3,305,916 Unamortized discounts and deferred financing costs, net (18,426) (4,892) (23,318) Total debt obligations, net $ 2,094,074 $ 1,188,524 $ 3,282,598 Senior Term Loan Revolving Credit Facility Unsecured Notes During the nine months ended September 30, 2020, repayments of unsecured notes prior to maturity resulted in losses on early extinguishment of debt of $12.0 million. This amount is included in “Loss on early extinguishment of debt, net” in the Company’s consolidated statements of operations. Debt Covenants 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, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12—Commitments and Contingencies Unfunded Commitments As of September 30, 2021, 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 Real Other Investments Estate Investments Total Performance-Based Commitments $ 7,860 $ 29,716 $ 71,319 $ 108,895 Strategic Investments — 1,900 7,592 9,492 Total $ 7,860 $ 31,616 $ 78,911 $ 118,387 Other Commitments Operating (1)(2) Finance (1) 2021 (remaining three months) $ 1,728 $ 1,384 2022 6,635 5,604 2023 6,272 5,716 2024 6,188 5,830 2025 6,176 5,946 Thereafter 334 1,567,826 Total undiscounted cash flows 27,333 1,592,306 Present value discount (1) (2,717) (1,439,677) Other adjustments (2) 22,495 — Lease liabilities $ 47,111 $ 152,629 (1) The lease liability 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 5.0% and the weighted average remaining lease term is 7.6 years. The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 4.9 years and the weighted average discount rate was 4.7% . For finance leases, which relate primarily to the Company’s Ground Leases with SAFE, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average remaining lease term is 96.2 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, 2021 and 2020, the Company recognized $ 2.1 million and $ 2.0 million, respectively, in "Interest expense" and $ 0.4 million and $ 0.4 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the nine months ended September 30, 2021 and 2020, the Company recognized $ 6.2 million and $ 6.1 million, respectively, in "Interest expense" and $ 1.1 million and $ 1.1 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the three months ended September 30, 2021 and 2020, the Company made payments of $0.8 million and $1.0 million, respectively, related to its operating leases and $1.3 million and $1.4 million, respectively, related to its finance leases with SAFE . During the nine months ended September 30, 2021 and 2020, the Company made payments of $2.1 million and $3.2 million, respectively, related to its operating leases and $4.1 million and $4.0 million, respectively, related to its finance leases with SAFE . (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company’s tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company’s tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2021 $ 3,797 $ 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 2025 6,297 5,946 Thereafter 496 1,567,826 Total undiscounted cash flows 30,048 1,596,416 Present value discount (1) (3,771) (1,445,896) Other adjustments (2) 23,795 — Lease liabilities $ 50,072 $ 150,520 (1) The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 5.6 years and the weighted average discount rate was 5.0% . The weighted average remaining lease term for the Company’s finance leases was 97 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. Legal Proceedings |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 13—Derivatives The 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, 2021 and December 31, 2020 ($ in thousands): (1) Derivative Liabilities Balance Sheet Fair As of September 30, 2021 Location Value Derivatives Designated in Hedging Relationships Interest rate swaps Accounts payable, accrued expenses and other liabilities $ 11,723 Total $ 11,723 As of December 31, 2020 Derivatives Designated in Hedging Relationships Interest rate swaps Accounts payable, accrued expenses and other liabilities $ 18,926 Total $ 18,926 (1) Over the next 12 months, the Company expects that $9.1 million related to cash flow hedges will be reclassified from “Accumulated other comprehensive income (loss)” as an increase to interest expense. The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Amount of Gain Amount of Gain Location of Gain (Loss) Recognized in (Loss) Reclassified (Loss) Accumulated Other from Accumulated Derivatives Designated in When Recognized in Comprehensive Other Comprehensive Hedging Relationships Income Income Income into Earnings For the Three Months Ended September 30, 2021 Interest rate swaps Interest expense $ 278 $ (2,050) Interest rate swaps Earnings from equity method investments (5) (633) For the Three Months Ended September 30, 2020 Interest rate swaps Interest expense $ (401) $ (2,038) Interest rate swaps Earnings from equity method investments 598 (333) For the Nine Months Ended September 30, 2021 Interest rate swaps Interest expense $ 2,834 $ (6,183) Interest rate swaps Earnings from equity method investments 8,649 (1,324) For the Nine Months Ended September 30, 2020 Interest rate swaps Interest Expense $ (15,371) $ (4,926) Interest rate swaps Earnings from equity method investments (15,559) (866) |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Note 14—Equity Preferred Stock Cumulative Preferential Cash Dividends (1)(2) Shares Issued and Annual Carrying Outstanding Par Liquidation Rate per Dividend Value Series (in thousands) Value Preference (3) Annum per share (in thousands) 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 30-day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Company’s Board of Directors for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date. (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, 2021 and 2020. The character of the 2020 dividends was 100% return of capital. 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 Stock Repurchase Program Accumulated Other Comprehensive Income (Loss) As of September 30, 2021 December 31, 2020 Unrealized gains on available-for-sale securities $ 3,681 $ 4,594 Unrealized losses on cash flow hedges (38,031) (53,075) Unrealized losses on cumulative translation adjustment — (4,199) Accumulated other comprehensive loss $ (34,350) $ (52,680) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Employee Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Employee Benefits | Note 15—Stock-Based Compensation Plans and Employee Benefits Stock-Based Compensation Performance Incentive Plans 2019-2022 iPIP Plans The following is a summary of the status of the Company’s equity-classified iPIP plans and changes during the nine months ended September 30, 2021. iPIP Investment Pool 2019-2020 2021-2022 Points at beginning of period 97.40 — Granted — 94.75 Forfeited (2.20) (10.00) Points at end of period 95.20 84.75 As of September 30, 2021, investments with an aggregate gross book value of $1.2 billion, including 26.7 million shares of SAFE common stock acquired by the Company, were attributable to the 2019-2020 Plan and investments with an aggregate gross book value of $163 million, including 1.0 million shares of SAFE common stock acquired by the Company, were attributable to the 2021-2022 Plan. 2013-2018 iPIP 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, 2021. iPIP Investment Pool 2013 ‑ 2014 2015 ‑ 2016 2017 ‑ 2018 Points at beginning of period 80.17 70.40 73.34 Granted — — 2.00 Points at end of period 80.17 70.40 75.34 During the nine months ended September 30, 2021 and 2020, the Company recorded $15.0 million and $20.2 million, respectively, of expense related to the 2013-2018 iPIP plans. As of September 30, 2021, investments with an aggregate gross book value of $387 million were attributable to the 2013-2014 Plan, investments with an aggregate gross book value of $396 million were attributable to the 2015-2016 Plan and investments with an aggregate gross book value of $480 million, including 7.6 million shares of SAFE common stock acquired by the Company, were attributable to the 2017-2018 Plan. During the nine months ended September 30, 2021, the Company made distributions to participants in the 2015-2016 investment pool. The iPIP participants received total distributions in the amount of $3.2 million as compensation, comprised of cash and 97,881 shares of the Company’s common stock with a fair value of $17.65 per share, which are fully-vested and issued under the 2009 LTIP (see below). After deducting statutory minimum tax withholdings, a total of 57,920 shares of the Company’s common stock were issued. 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. After deducting statutory minimum tax withholdings, a total of 32,825 shares of the Company’s common stock were issued. As of September 30, 2021 and December 31, 2020, the Company had accrued compensation costs relating to iPIP of $80.9 million and $69.1 million, respectively, which are included in “Accounts payable, accrued expenses and other liabilities” on the Company’s consolidated balance sheets. Long-Term Incentive Plan Company’s shareholders approved an increase in the number of shares available for issuance under the 2009 LTIP from a maximum of 8.9 million to 9.9 million and extended the expiration date of the 2009 LTIP from May 2029 to May 2031. As of September 30, 2021, an aggregate of 3.1 million shares remain available for issuance pursuant to future awards under the Company’s 2009 LTIP. Restricted Stock Unit Activity Nonvested at beginning of period 531 Granted 372 Vested (112) Forfeited (32) Nonvested at end of period 759 As of September 30, 2021, there was $6.8 million of total unrecognized compensation cost related to all unvested restricted stock units that are expected to be recognized over a weighted average remaining vesting/service period of 1.35 years. Directors’ Awards 401(k) Plan |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 16—Earnings Per Share The following table presents a reconciliation of income from operations used in the basic and diluted earnings per share (“EPS”) calculations ($ in thousands, except for per share data): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Net income (loss) $ 130,994 $ 6,451 $ 127,567 $ (20,793) Net income attributable to noncontrolling interests (3,264) (2,646) (8,037) (8,435) Preferred dividends (5,874) (5,874) (17,622) (17,622) Net income (loss) allocable to common shareholders for basic and diluted earnings per common share $ 121,856 $ (2,069) $ 101,908 $ (46,850) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Earnings allocable to common shares: Numerator for basic earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ 121,856 $ (2,069) $ 101,908 $ (46,850) Numerator for diluted earnings per share: Net income (loss) allocable to common shareholders $ 121,856 $ (2,069) $ 101,908 $ (46,850) Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 71,299 75,033 72,675 76,232 Add: Effect of assumed shares issued under treasury stock method for restricted stock units 221 — 206 — Add: Effect of convertible debt 8,967 — 5,521 — Weighted average common shares outstanding for basic and diluted earnings per common share 80,487 75,033 78,402 76,232 Basic and diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ 1.71 $ (0.03) $ 1.40 $ (0.61) Diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ 1.51 $ (0.03) $ 1.30 $ (0.61) (1) For the three and nine months ended September 30, 2020, no shares of common stock would have been issuable upon conversion of the 3.125% Convertible Notes, and therefore the 3.125% Convertible Notes had no effect on diluted EPS for such periods. |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Note 17—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 Quoted market Significant prices in other Significant active observable unobservable markets inputs inputs Total (Level 1) (Level 2) (Level 3) As of September 30, 2021 Recurring basis: Derivative liabilities (1) $ 11,723 $ — $ 11,723 $ — Available-for-sale securities (1) 27,535 — — 27,535 Non-recurring basis: Impaired real estate available and held for sale (2) 1,682 — — 1,682 Other investments (3) 98,461 — 98,461 — As of December 31, 2020 Recurring basis: Derivative liabilities (1) 18,926 — 18,926 — Available-for-sale securities (1) 25,274 — — 25,274 Non-recurring basis: Impaired land and development (4) 6,078 — — 6,078 (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) The Company recorded a $0.4 million impairment on an operating property held for sale with an estimated fair value of $1.7 million. The estimated fair value is based on an executed sales contract with a third party. (3) During the nine months ended September 30, 2021, 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. (4) The Company recorded a $1.3 million impairment on a land and development asset with an estimated fair value of $6.1 million. The estimated fair value is based on future cash flows expected to be received. The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the nine months ended September 30, 2021 and 2020 ($ in thousands): 2021 2020 Beginning balance $ 25,274 $ 23,896 Purchases 3,375 — Repayments (201) (460) Unrealized gains (losses) recorded in other comprehensive income (913) 1,195 Ending balance $ 27,535 $ 24,631 Fair values of financial instruments— As of September 30, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Net investment in leases (1) $ 477 $ 497 $ 429 $ 431 Loans receivable and other lending investments, net (1) 406 436 732 772 Cash and cash equivalents (2) 299 299 99 99 Restricted cash (2) 56 56 52 52 Loan participations payable, net (1) — — 43 43 Debt obligations, net (1)(3) 3,283 3,643 3,287 3,414 (1) The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loan participations payable, net and debt obligations, net are classified as Level 3 within the fair value hierarchy. (2) The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy. (3) As of September 30, 2021 and December 31, 2020, the fair value of the Company’s 3.125% Senior Convertible Notes was $527.2 million and $338.8 million, respectively. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 18—Segment Reporting The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Net Lease, Real Estate Finance, Operating Properties and Land and Development. The Net Lease segment includes the Company’s activities and operations related to the ownership of properties generally leased to single corporate tenants and its investments in SAFE and Net Lease Venture II (refer to Note 8). The Real Estate Finance segment includes all of the Company’s activities related to senior and mezzanine real estate loans and real estate related securities. The Operating Properties segment includes the Company’s activities and operations related to its commercial and residential properties. The Land and Development segment includes the Company’s activities related to its developable land portfolio. The Company evaluates performance-based on the following financial measures for each segment. The Company’s segment information is as follows ($ in thousands): Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Three Months Ended September 30, 2021 Operating lease income $ 40,659 $ — $ 3,637 $ 96 $ — $ 44,392 Interest income 1,630 6,321 — — — 7,951 Interest income from sales-type leases 9,578 — — — — 9,578 Other income 4,767 1,095 16,869 3,189 14,275 40,195 Land development revenue — — — 93,369 — 93,369 Earnings (losses) from equity method investments 74,889 872 1,129 10,836 1,483 89,209 Income from sales of real estate — — 25,611 — — 25,611 Total revenue and other earnings 131,523 8,288 47,246 107,490 15,758 310,305 Real estate expense (5,446) — (9,184) (4,094) — (18,724) Land development cost of sales — — — (87,380) — (87,380) Other expense (1,327) (270) — (64) (350) (2,011) Allocated interest expense (26,467) (3,331) (1,641) (3,679) (4,353) (39,471) Allocated general and administrative (2) (5,487) (958) (473) (2,173) (5,029) (14,120) Segment profit (loss) (3) $ 92,796 $ 3,729 $ 35,948 $ 10,100 $ 6,026 $ 148,599 Other significant items: Provision for (recovery of) loan losses $ 54 $ (1,610) $ — $ — $ — $ (1,556) Provision for losses on net investment in leases 131 — — — — 131 Impairment of assets 757 — 422 — — 1,179 Depreciation and amortization 13,114 — 1,385 228 129 14,856 Capitalized expenditures 969 — 121 7,416 — 8,506 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 non-cash 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 Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Nine Months Ended September 30, 2021 Operating lease income $ 123,926 $ — $ 13,176 $ 279 $ — $ 137,381 Interest income 3,696 23,878 — — — 27,574 Interest income from sales-type leases 26,895 — — — — 26,895 Other income 14,213 1,245 23,159 5,894 20,038 64,549 Land development revenue — — — 157,936 — 157,936 Earnings (losses) from equity method investments 98,604 2,092 (5,553) 15,456 4,076 114,675 Income from sales of real estate 2,114 — 26,319 — — 28,433 Total revenue and other earnings 269,448 27,215 57,101 179,565 24,114 557,443 Real estate expense (21,065) — (19,238) (13,604) — (53,907) Land development cost of sales — — — (147,507) — (147,507) Other expense (1,327) (422) — (64) (662) (2,475) Allocated interest expense (76,888) (11,737) (5,714) (11,481) (12,631) (118,451) Allocated general and administrative (2) (17,544) (3,659) (1,797) (6,968) (15,686) (45,654) Segment profit (loss) (3) $ 152,624 $ 11,397 $ 30,352 $ (59) $ (4,865) $ 189,449 Other significant items: Recovery of loan losses $ (202) $ (7,411) $ — $ — $ — $ (7,613) Recovery of losses on net investment in leases (1,735) — — — — (1,735) Impairment of assets 2,286 — 679 — — 2,965 Depreciation and amortization 39,255 — 4,593 674 449 44,971 Capitalized expenditures 2,300 — 610 16,727 — 19,637 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 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 As of September 30, 2021 Real estate, net $ 1,263,881 $ — $ 93,043 $ — $ — $ 1,356,924 Real estate available and held for sale — — 1,983 — — 1,983 Total real estate 1,263,881 — 95,026 — — 1,358,907 Net investment in leases 477,360 — — — — 477,360 Land and development, net — — — 302,845 — 302,845 Loans receivable and other lending investments, net 47,555 357,954 — — — 405,509 Loan receivable held for sale 42,683 — — — — 42,683 Other investments 1,213,804 47,936 43,659 537 113,830 1,419,766 Total portfolio assets 3,045,283 405,890 138,685 303,382 113,830 4,007,070 Cash and other assets 795,095 Total assets $ 4,802,165 As of December 31, 2020 Real estate, net $ 1,291,903 $ — $ 192,378 $ — $ — $ 1,484,281 Real estate available and held for sale — — 5,212 — — 5,212 Total real estate 1,291,903 — 197,590 — — 1,489,493 Net investment in leases 429,101 — — — — 429,101 Land and development, net — — — 430,663 — 430,663 Loans receivable and other lending investments, net 45,398 686,932 — — — 732,330 Other investments 1,016,710 — 58,739 31,200 69,911 1,176,560 Total portfolio assets $ 2,783,112 $ 686,932 $ 256,329 $ 461,863 $ 69,911 4,258,147 Cash and other assets 603,661 Total assets $ 4,861,808 (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 $ 3.0 million and $23.3 million for the three and nine months ended September 30, 2021, respectively, and $ 5.7 million and $ 26.7 million for the three and nine months ended September 30, 2020, 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, 2021 2020 2021 2020 Segment profit $ 148,599 $ 32,934 $ 189,449 $ 74,077 Less: Recovery of (provision for) loan losses 1,556 1,976 7,613 (4,093) Less: (Provision for) recovery of losses on net investment in leases (131) (175) 1,735 (2,001) Less: Impairment of assets (1,179) — (2,965) (6,491) Less: Stock-based compensation expense (3,001) (5,661) (23,300) (26,675) Less: Depreciation and amortization (14,856) (14,621) (44,971) (43,407) Less: Income tax benefit (expense) 6 (78) 6 (165) Less: Loss on early extinguishment of debt, net — (7,924) — (12,038) Net income (loss) $ 130,994 $ 6,451 $ 127,567 $ (20,793) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events | |
Subsequent Events | Note 19—Subsequent Events Subsequent to the end of the quarter, the Company obtained the consents of holders of its outstanding 4.75% senior notes due 2024, 4.25% senior notes due 2025 and 5.50% senior notes due 2026 to certain amendments to the indentures governing the notes intended to align the indentures with the potential sale of the Company's net lease assets. The Company paid holders consent fees ranging from 0.75% to 1.00% of the principal amount of consenting notes, depending on the relevant series. The Company previously announced on July 6, 2021 that it intended to explore market interest for possible sales of its net lease assets. That process remains ongoing. There can be no assurance as to whether the Company will sell some, all or none of its net lease assets, or as to the timing and terms of any sales. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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 | Principles of Consolidation |
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, 2021. The Company adopted 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”) on January 1, 2021 using the modified retrospective approach method. Under the modified retrospective approach, the Company recorded a cumulative effect adjustment on January 1, 2021 by increasing “Debt obligations, net” by $10.0 million, increasing retained earnings by $15.9 million and decreasing “Additional paid-in capital” by $25.9 million with respect to its 3.125% senior convertible notes (refer to Note 11). Periods presented that are prior to the adoption date of January 1, 2021 will not be adjusted. In addition, upon the adoption of ASU 2020-06, the Company is required to use a modified if-converted method when calculating earnings per share. The Company will settle conversions of the 3.125% senior convertible notes by paying the conversion value in cash up to the original principal amount of the notes being converted and shares of common stock to the extent of any conversion premium. The if-converted method is modified so that interest expense is not added back to the numerator, and the denominator only includes the net number of incremental shares that would be issued upon conversion. New Accounting Pronouncements — |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of assets and liabilities of consolidated VIEs | As of September 30, 2021 December 31, 2020 ASSETS Real estate Real estate, at cost $ 901,254 $ 899,110 Less: accumulated depreciation (80,409) (61,917) Real estate, net 820,845 837,193 Land and development, net 190,929 240,137 Other investments 26 35 Cash and cash equivalents 25,114 22,571 Accrued interest and operating lease income receivable, net 1,282 1,472 Deferred operating lease income receivable, net 36,665 29,428 Deferred expenses and other assets, net 119,127 122,591 Total assets $ 1,193,988 $ 1,253,427 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 74,307 $ 115,581 Debt obligations, net 478,567 488,719 Total liabilities 552,874 604,300 |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of real estate assets | The Company’s real estate assets were comprised of the following ($ in thousands): Net Operating Lease (1) Properties Total As of September 30, 2021 Land, at cost $ 188,418 $ 6,830 $ 195,248 Buildings and improvements, at cost 1,355,984 106,634 1,462,618 Less: accumulated depreciation (280,521) (20,421) (300,942) Real estate, net (1) 1,263,881 93,043 1,356,924 Real estate available and held for sale (2) — 1,983 1,983 Total real estate $ 1,263,881 $ 95,026 $ 1,358,907 As of December 31, 2020 Land, at cost $ 188,418 $ 103,530 $ 291,948 Buildings and improvements, at cost 1,353,683 106,422 1,460,105 Less: accumulated depreciation (250,198) (17,574) (267,772) Real estate, net (1) 1,291,903 192,378 1,484,281 Real estate available and held for sale (2) — 5,212 5,212 Total real estate $ 1,291,903 $ 197,590 $ 1,489,493 (1) As of September 30, 2021 and December 31, 2020, real estate, net included $741.6 million and $755.5 million, respectively, of real estate of the Net Lease Venture (refer to Net Lease Venture below). (2) As of September 30, 2021 and December 31, 2020, the Company had $2.0 million and $5.2 million, respectively, of residential condominiums available for sale in its operating properties portfolio. |
Schedule of future minimum lease payments to be collected under non-cancelable operating leases | Net Operating Year Lease Properties 2021 (remaining three months) $ 32,800 $ 1,455 2022 133,616 6,226 2023 125,330 5,966 2024 119,714 5,913 2025 123,248 5,318 Thereafter 1,385,609 7,825 |
Net Investment in Leases (Table
Net Investment in Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of net investment in leases | The Company’s net investment in leases were comprised of the following as of September 30, 2021 and December 31, 2020 ($ in thousands): September 30, 2021 December 31, 2020 Total undiscounted cash flows $ 1,538,758 $ 1,020,921 Unguaranteed estimated residual value 367,804 345,284 Present value discount (1,420,066) (926,233) Allowance for losses on net investment in leases (9,136) (10,871) Net investment in leases (1) $ 477,360 $ 429,101 |
Schedule of future minimum lease payments to be collected under sales-type leases | Amount 2021 (remaining three months) $ 7,372 2022 30,590 2023 43,272 2024 43,029 2025 31,955 Thereafter 1,382,540 Total undiscounted cash flows $ 1,538,758 |
Schedule of changes in allowance for losses on net investment in leases | Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Allowance for losses on net investment in leases at beginning of period $ 9,005 $ 10,937 $ 10,871 $ — Initial allowance recorded upon adoption of new accounting standard (1) — — — 9,111 Provision for (recovery of) losses on net investment in leases (2) 131 176 (1,735) 2,002 Allowance for losses on net investment in leases at end of period $ 9,136 $ 11,113 $ 9,136 $ 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. (2) During the three and nine months ended September 30, 2021, the Company recorded a provision for (recovery of) losses on net investment in leases of $0.1 million and ($1.7) million, respectively. The provision for losses for the three months ended September 30, 2021 resulted from market changes since June 30, 2021 and the recovery of losses for the nine months ended September 30, 2021 was due primarily to asset sales and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. During the three and nine months ended September 30, 2020, the Company recorded a provision for losses on net investment in leases of $0.2 million and $2.0 million, respectively, due primarily to the macroeconomic impact of COVID-19 on commercial real estate markets and the adoption of ASU 2016-13 . |
Land and Development (Tables)
Land and Development (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Land And Development [Abstract] | |
Schedule of land and development assets | The Company’s land and development assets were comprised of the following ($ in thousands): As of September 30, December 31, 2021 2020 Land and land development, at cost $ 313,428 $ 441,201 Less: accumulated depreciation (10,583) (10,538) Total land and development, net $ 302,845 $ 430,663 |
Loans Receivable and Other Le_2
Loans Receivable and Other Lending Investments, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 December 31, 2020 Construction loans Senior mortgages $ 191,697 $ 449,733 Corporate/Partnership loans 3,516 65,100 Subtotal - gross carrying value of construction loans (1) 195,213 514,833 Loans Senior mortgages 15,181 35,922 Corporate/Partnership loans 17,941 20,567 Subordinate mortgages 12,248 11,640 Subtotal - gross carrying value of loans 45,370 68,129 Other lending investments Financing receivables (refer to Note 5) 48,503 46,549 Held-to-maturity debt securities 95,258 90,715 Available-for-sale debt securities 27,535 25,274 Subtotal - other lending investments 171,296 162,538 Total gross carrying value of loans receivable and other lending investments 411,879 745,500 Allowance for loan losses (6,370) (13,170) Total loans receivable and other lending investments, net $ 405,509 $ 732,330 (1) As of September 30, 2021, 98% of gross carrying value of construction loans had completed construction. |
Schedule of changes in the company's allowance for loan losses | General Allowance Held to Construction Maturity Debt Financing Specific Three Months Ended September 30, 2021 Loans Loans Securities Receivables Allowance Total Allowance for loan losses at beginning of period $ 1,640 $ 1,619 $ 2,393 $ 893 $ 590 $ 7,135 (Recovery of) provision for loan losses (1) (149) (865) 145 54 50 (765) Allowance for loan losses at end of period $ 1,491 $ 754 $ 2,538 $ 947 $ 640 $ 6,370 Three Months Ended September 30, 2020 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, 2021 and 2020, the Company recorded a provision for (recovery of) loan losses of ($1.6) million and ( $2.0 ) million, respectively, in its consolidated statements of operations. The recovery in 2021 was due primarily to the repayment of loans during the three months ended September 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since June 30, 2021. Of this amount, $0.9 million related to a recovery of loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities." The recovery in 2020 resulted 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 loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities" and $0.9 million related to a provision on a non-performing loan that was recorded as a reduction to "Accrued interest and operating lease income receivable, net." Changes in the Company’s allowance for loan losses were as follows for the nine months ended September 30, 2021 and 2020 ($ in thousands): General Allowance Held to Construction Maturity Debt Financing Specific Nine Months Ended September 30, 2021 Loans Loans Securities Receivables Allowance Total Allowance for loan losses at beginning of period $ 6,541 $ 1,643 $ 3,093 $ 1,150 $ 743 $ 13,170 Recovery of loan losses (1) (5,050) (889) (555) (203) (103) (6,800) Allowance for loan losses at end of period $ 1,491 $ 754 $ 2,538 $ 947 $ 640 $ 6,370 Nine Months Ended September 30, 2020 Allowance for loan losses at beginning of period $ 6,668 $ 265 $ — $ — $ 21,701 $ 28,634 Adoption of new accounting standard (2) (353) 98 20 964 — 729 Provision for loan losses (1) 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) During the nine months ended September 30, 2021 and 2020, the Company recorded a provision for (recovery of) loan losses of ($7.6) million and $4.1 million, respectively, in its consolidated statements of operations. The recovery in 2021 was due primarily to the repayment of loans during the nine months ended September 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. Of this amount, $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 .” The provision for loan losses in 2020 resulted 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." (2) 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, of which $2.5 million related to expected credit losses for unfunded loan commitments and was recorded in “Accounts payable, accrued expenses and other liabilities.” |
Schedule of recorded investment in loans and associated allowance for loan losses | The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of September 30, 2021 and December 31, 2020 ($ in thousands): Individually Collectively Evaluated for Evaluated for Impairment (1) Impairment Total As of September 30, 2021 Construction loans (2) $ 58,819 $ 136,394 $ 195,213 Loans (2) — 45,370 45,370 Financing receivables — 48,503 48,503 Held-to-maturity debt securities — 95,258 95,258 Available-for-sale debt securities (3) — 27,535 27,535 Less: Allowance for loan losses (640) (5,730) (6,370) Total $ 58,179 $ 347,330 $ 405,509 As of December 31, 2020 Construction loans (2) $ 53,305 $ 461,528 $ 514,833 Loans (2) — 68,129 68,129 Financing receivables — 46,549 46,549 Held-to-maturity debt securities — 90,715 90,715 Available-for-sale debt securities (3) — 25,274 25,274 Less: Allowance for loan losses (743) (12,427) (13,170) Total $ 52,562 $ 679,768 $ 732,330 (1) The carrying value of this loan includes an unamortized discount of $0.8 million and $0.8 million as of September 30, 2021 and December 31, 2020, respectively. The Company’s loans individually evaluated for impairment represent 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 $0.2 million and $2.3 million as of September 30, 2021 and December 31, 2020, respectively. (3) Available-for-sale debt securities are evaluated for impairment under ASC 326-30. |
Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating | The Company’s amortized cost basis in performing senior mortgages, corporate/partnership loans, subordinate mortgages and financing receivables, presented by year of origination and by credit quality, as indicated by risk rating, as of September 30, 2021 were as follows ($ in thousands): Year of Origination 2021 2020 2019 2018 2017 Prior to 2017 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — 11,900 — — 11,900 2.5 — — — — — — — 3.0 — — — 109,137 — 3,281 112,418 3.5 — — — 23,741 — — 23,741 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ — $ — $ 144,778 $ — $ 3,281 $ 148,059 Corporate/partnership loans Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — 3,516 — — 3,516 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — 17,941 — — 17,941 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ 21,457 $ — $ — $ 21,457 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 12,248 12,248 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 12,248 $ 12,248 Financing receivables Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — 48,503 — — — 48,503 2.5 — — — — — — — 3.0 — — — — — — — 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ 48,503 $ — $ — $ — $ 48,503 Total $ — $ — $ 48,503 $ 166,235 $ — $ 15,529 $ 230,267 (1) As of September 30, 2021, excludes $58.8 million for one loan on non-accrual status. |
Schedule of recorded investment in loans, aged by payment status and presented by class | The Company’s amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Less Than Greater or Equal Than Total Current to 90 Days 90 Days Past Due Total As of September 30, 2021 Senior mortgages $ 148,059 $ — $ 58,819 58,819 $ 206,878 Corporate/Partnership loans 21,457 — — — 21,457 Subordinate mortgages 12,248 — — — 12,248 Total $ 181,764 $ — $ 58,819 $ 58,819 $ 240,583 As of December 31, 2020 Senior mortgages $ 443,154 $ 42,501 $ — $ 42,501 $ 485,655 Corporate/Partnership loans 42,721 42,946 — 42,946 85,667 Subordinate mortgages 11,640 — — — 11,640 Total $ 497,515 $ 85,447 $ — $ 85,447 $ 582,962 |
Schedule of recorded investment in impaired loans | As of September 30, 2021 As of December 31, 2020 Unpaid Unpaid Amortized Principal Related Amortized Principal Related Cost Balance Allowance Cost Balance Allowance With an allowance recorded: Senior mortgages (1) $ 58,819 $ 58,069 $ (640) $ 53,305 $ 52,552 $ (743) Total $ 58,819 $ 58,069 $ (640) $ 53,305 $ 52,552 $ (743) (1) The Company has one non-accrual loan as of September 30, 2021 and December 31, 2020 that is considered impaired and included in the table above. The Company did no t record any interest income on impaired loans for the nine months ended September 30, 2021 and 2020. |
Schedule of contractual maturities of securities | Net Net Amortized Unrealized Estimated Carrying Face Value Cost Basis Gain Fair Value Value As of September 30, 2021 Available-for-Sale Securities Municipal debt securities $ 23,855 $ 23,855 $ 3,680 $ 27,535 $ 27,535 Held-to-Maturity Securities Debt securities 100,000 95,258 — 95,258 95,258 Total $ 123,855 $ 119,113 $ 3,680 $ 122,793 $ 122,793 As of December 31, 2020 Available-for-Sale Securities Municipal debt securities $ 20,680 $ 20,680 $ 4,594 $ 25,274 $ 25,274 Held-to-Maturity Securities Debt securities 100,000 90,715 — 90,715 90,715 Total $ 120,680 $ 111,395 $ 4,594 $ 115,989 $ 115,989 As of September 30, 2021, the contractual maturities of the Company’s securities were as follows ($ in thousands): Held-to-Maturity Debt Securities Available-for-Sale Debt Securities Amortized Estimated Amortized Estimated Cost Basis Fair Value Cost Basis Fair Value Maturities Within one year $ — $ — $ — $ — After one year through 5 years 95,258 95,258 — — After 5 years through 10 years — — — — After 10 years — — 23,855 27,535 Total $ 95,258 $ 95,258 $ 23,855 $ 27,535 |
Other Investments (Tables)
Other Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Earnings (Losses) from Carrying Value Equity Method Investments (1) Equity Method Investments (1) as of For the Three Months Ended For the Nine Months Ended September 30, December 31, September 30, September 30, 2021 2020 2021 2020 2021 2020 Real estate equity investments Safehold Inc. ("SAFE") (2) $ 1,113,333 $ 937,712 $ 73,475 $ 9,331 $ 94,590 $ 36,905 iStar Net Lease II LLC ("Net Lease Venture II") 100,471 78,998 1,414 811 4,014 1,568 Other real estate equity investments 44,196 89,939 11,965 (3,542) 9,902 (10,517) Subtotal 1,258,000 1,106,649 86,854 6,600 108,506 27,956 Other strategic investments (3) 161,766 69,911 2,355 205 6,169 (1,953) Total $ 1,419,766 $ 1,176,560 $ 89,209 $ 6,805 $ 114,675 $ 26,003 (1) For the three months ended September 30, 2021 and 2020, earnings (losses) from equity method investments is net of the Company’s pro rata share of $5.1 million and $4.6 million, respectively, of depreciation expense and $18.5 million and $14.6 million, respectively, of interest expense. For the nine months ended September 30, 2021 and 2020, earnings (losses) from equity method investments is net of the Company’s pro rata share of $16.2 million and $13.4 million, respectively, of depreciation expense and $51.7 million and $44.0 million, respectively, of interest expense. (2) As of September 30, 2021, the Company owned 36.0 million shares of SAFE common stock which, based on the closing price of $71.89 on September 30, 2021, had a market value of $2.6 billion. Pursuant to ASC 323-10-40-1, an equity method investor shall account for a share issuance by an investee as if the investor had sold a proportionate share of its investment. Any gain or loss to the investor resulting from an investee’s share issuance shall be recognized in earnings. For the three months ended September 30, 2021, equity in earnings includes a dilution gain of $60.2 million resulting from a SAFE equity offering. For the nine months ended September 30, 2021 and 2020, equity in earnings includes dilution gains of $60.7 million and $7.9 million, respectively, resulting from SAFE equity offerings. (3) During the three and nine months ended September 30, 2021 and 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 $19.1 million for the three and nine months ended September 30, 2021, respectively, and aggregate mark-to-market gains of $14.0 million and $23.9 million for the three and nine months ended September30, 2020, respectively, in “Other income” in the Company’s consolidated statements of operations. |
Schedule of summarized financial information | The following table presents the investee level summarized financial information for the Company’s equity method investment that was significant as of September 30, 2021 ($ in thousands): Revenues Expenses Net Income Attributable to Parent For the Nine Months Ended September 30, 2021 SAFE $ 135,001 $ 88,585 $ 51,844 For the Nine Months Ended September 30, 2020 SAFE $ 115,518 $ 73,821 $ 44,024 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 December 31, 2020 Intangible assets, net (1) $ 146,588 $ 156,041 Restricted cash 55,915 51,933 Operating lease right-of-use assets (2) 43,799 48,891 Other assets (3) 17,572 19,453 Other receivables 11,052 10,881 Leasing costs, net (4) 4,936 2,340 Corporate furniture, fixtures and equipment, net (5) 1,843 2,024 Deferred financing fees, net 841 1,549 Deferred expenses and other assets, net $ 282,546 $ 293,112 (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 $50.8 million and $44.4 million as of September 30, 2021 and December 31, 2020, respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company’s consolidated statements of operations by $0.5 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $1.1 million and $1.0 million for the nine months ended September 30, 2021 and 2020, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $ 2.8 million and $ 2.6 million for the three months ended September 30, 2021 and 2020, respectively, and $ 8.6 million and $ 7.9 million for the nine months ended September 30, 2021 and 2020, respectively. These amounts are included in “Depreciation and amortization” in the Company’s consolidated statements of operations. As of September 30, 2021, the weighted average remaining amortization period for the Company’s intangible assets was approximately 16.2 years. (2) Right-of-use lease assets relate primarily to the Company’s leases of office space. Right-of use lease assets initially equal the lease liability. 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, 2021 and 2020, the Company recognized $1.2 million and $1.2 million, respectively, in "General and administrative" and $0.9 million and $0.9 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. During the nine months ended September 30, 2021 and 2020, the Company recognized $3.7 million and $3.4 million, respectively, in "General and administrative" and $2.7 million and $2.6 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. (3) Other assets primarily includes prepaid expenses, deposits for certain real estate assets and management fees and expense reimbursements due from SAFE (refer to Note 8). (4) Accumulated amortization of leasing costs was $2.1 million and $2.6 million as of September 30, 2021 and December 31, 2020, respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $14.7 million and $14.3 million as of September 30, 2021 and December 31, 2020, respectively. |
Schedule of accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of September 30, 2021 December 31, 2020 Other liabilities (1) $ 65,318 91,513 Accrued expenses 112,223 94,724 Intangible liabilities, net (2) 46,870 48,738 Operating lease liabilities (see table above) 47,111 50,072 Accrued interest payable 28,939 32,355 Accounts payable, accrued expenses and other liabilities $ 300,461 $ 317,402 (1) As of September 30, 2021 and December 31, 2020, other liabilities includes $20.7 million and $36.9 million, respectively, of deferred income. As of September 30, 2021 and December 31, 2020, other liabilities includes $11.7 million and $19.0 million, respectively, of derivative liabilities. As of September 30, 2021 and December 31, 2020, other liabilities includes $0.1 million and $1.0 million, respectively, 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 $9.0 million and $7.5 million as of September 30, 2021 and December 31, 2020, respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.6 million and $0.6 million for the three months ended September 30, 2021 and 2020, respectively, and $ 1.9 million and $ 1.9 million for the nine months ended September 30, 2021 and 2020, respectively. |
Debt Obligations, net (Tables)
Debt Obligations, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 December 31, 2020 Interest Rates Maturity Date Secured credit facilities and mortgages: Revolving Credit Facility $ — $ — 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 701,541 721,075 1.63% - 7.19 % (3) Total secured credit facilities and mortgages (4) 1,193,416 1,212,950 Unsecured notes: 3.125% senior convertible notes (5) 287,500 287,500 3.125 % September 2022 4.75% senior notes (6) 775,000 775,000 4.75 % October 2024 4.25% senior notes (7) 550,000 550,000 4.25 % August 2025 5.50% senior notes (8) 400,000 400,000 5.50 % February 2026 Total unsecured notes 2,012,500 2,012,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50 % October 2035 Total debt obligations 3,305,916 3,325,450 Debt discounts and deferred financing costs, net (9) (23,318) (38,475) Total debt obligations, net (10) $ 3,282,598 $ 3,286,975 (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, 2021, the weighted average interest rate of these loans is 4.4% , inclusive of the effect of interest rate swaps. (4) As of September 30, 2021, $2.0 billion net carrying value of assets served as collateral for the Company’s secured debt obligations. (5) 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, 2021 was 71.5797 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $13.97 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. As of December 31, 2020, the carrying value of the 3.125% Convertible Notes was $275.1 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $10.2 million, net of fees. Upon the adoption of ASU 2020-06 on January 1, 2021, the Company reclassed the unamortized discount to shareholders equity (refer to Note 3). During the three months ended September 30, 2021 and 2020, the Company recognized $2.2 million and $2.2 million, respectively, of contractual interest and during the three months ended September 30, 2020, the Company recognized $1.3 million of discount amortization on the 3.125% Convertible Notes. During the nine months ended September 30, 2021 and 2020, the Company recognized $6.7 million and $6.7 million, respectively, of contractual interest and during the nine months ended September 30, 2020, the Company recognized $3.9 million of discount amortization on the 3.125% Convertible Notes. The effective interest rate for the three and nine months ended September 30, 2020 was 5.2% . (6) The Company can prepay these senior notes without penalty beginning July 1, 2024. (7) The Company can prepay these senior notes without penalty beginning May 1, 2025. (8) The Company can prepay these senior notes without penalty beginning August 15, 2024. (9) On January 1, 2021, the Company adopted ASU 2020-06 and reclassed $10.0 million of debt discount and unamortized fees from the 3.125% Convertible Notes to shareholders’ equity on the Company’s consolidated balance sheet (refer to Note 3). (10) The Company capitalized interest relating to development activities of $ 0.2 million and $ 0.5 million during the three months ended September 30, 2021 and 2020, respectively, and $ 0.7 million and $ 1.6 million during the nine months ended September 30, 2021 and 2020, respectively. |
Schedule of future scheduled maturities of outstanding debt obligations | Unsecured Debt Secured Debt Total 2021 (remaining three months) $ — $ 95,495 $ 95,495 2022 287,500 95,324 382,824 2023 — 491,875 491,875 2024 775,000 — 775,000 2025 550,000 269,780 819,780 Thereafter 500,000 240,942 740,942 Total principal maturities 2,112,500 1,193,416 3,305,916 Unamortized discounts and deferred financing costs, net (18,426) (4,892) (23,318) Total debt obligations, net $ 2,094,074 $ 1,188,524 $ 3,282,598 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of unfunded commitments | As of September 30, 2021, 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 Real Other Investments Estate Investments Total Performance-Based Commitments $ 7,860 $ 29,716 $ 71,319 $ 108,895 Strategic Investments — 1,900 7,592 9,492 Total $ 7,860 $ 31,616 $ 78,911 $ 118,387 |
Schedule of future minimum lease obligations operating leases | Operating (1)(2) Finance (1) 2021 (remaining three months) $ 1,728 $ 1,384 2022 6,635 5,604 2023 6,272 5,716 2024 6,188 5,830 2025 6,176 5,946 Thereafter 334 1,567,826 Total undiscounted cash flows 27,333 1,592,306 Present value discount (1) (2,717) (1,439,677) Other adjustments (2) 22,495 — Lease liabilities $ 47,111 $ 152,629 (1) The lease liability 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 5.0% and the weighted average remaining lease term is 7.6 years. The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 4.9 years and the weighted average discount rate was 4.7% . For finance leases, which relate primarily to the Company’s Ground Leases with SAFE, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average remaining lease term is 96.2 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, 2021 and 2020, the Company recognized $ 2.1 million and $ 2.0 million, respectively, in "Interest expense" and $ 0.4 million and $ 0.4 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the nine months ended September 30, 2021 and 2020, the Company recognized $ 6.2 million and $ 6.1 million, respectively, in "Interest expense" and $ 1.1 million and $ 1.1 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the three months ended September 30, 2021 and 2020, the Company made payments of $0.8 million and $1.0 million, respectively, related to its operating leases and $1.3 million and $1.4 million, respectively, related to its finance leases with SAFE . During the nine months ended September 30, 2021 and 2020, the Company made payments of $2.1 million and $3.2 million, respectively, related to its operating leases and $4.1 million and $4.0 million, respectively, related to its finance leases with SAFE . (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company’s tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company’s tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2021 $ 3,797 $ 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 2025 6,297 5,946 Thereafter 496 1,567,826 Total undiscounted cash flows 30,048 1,596,416 Present value discount (1) (3,771) (1,445,896) Other adjustments (2) 23,795 — Lease liabilities $ 50,072 $ 150,520 (1) The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 5.6 years and the weighted average discount rate was 5.0% . The weighted average remaining lease term for the Company’s finance leases was 97 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. |
Schedule of future minimum lease obligations finance leases | Operating (1)(2) Finance (1) 2021 (remaining three months) $ 1,728 $ 1,384 2022 6,635 5,604 2023 6,272 5,716 2024 6,188 5,830 2025 6,176 5,946 Thereafter 334 1,567,826 Total undiscounted cash flows 27,333 1,592,306 Present value discount (1) (2,717) (1,439,677) Other adjustments (2) 22,495 — Lease liabilities $ 47,111 $ 152,629 (1) The lease liability 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 5.0% and the weighted average remaining lease term is 7.6 years. The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 4.9 years and the weighted average discount rate was 4.7% . For finance leases, which relate primarily to the Company’s Ground Leases with SAFE, lease liabilities were discounted at a weighted average rate implicit in the lease of 5.5% and the weighted average remaining lease term is 96.2 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, 2021 and 2020, the Company recognized $ 2.1 million and $ 2.0 million, respectively, in "Interest expense" and $ 0.4 million and $ 0.4 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the nine months ended September 30, 2021 and 2020, the Company recognized $ 6.2 million and $ 6.1 million, respectively, in "Interest expense" and $ 1.1 million and $ 1.1 million, respectively, in "Depreciation and amortization" in its consolidated statements of operations relating to finance leases. During the three months ended September 30, 2021 and 2020, the Company made payments of $0.8 million and $1.0 million, respectively, related to its operating leases and $1.3 million and $1.4 million, respectively, related to its finance leases with SAFE . During the nine months ended September 30, 2021 and 2020, the Company made payments of $2.1 million and $3.2 million, respectively, related to its operating leases and $4.1 million and $4.0 million, respectively, related to its finance leases with SAFE . (2) The Company is obligated to pay ground rent under certain operating leases; however, the Company’s tenants at the properties pay this expense directly under the terms of various subleases and these amounts are excluded from lease obligations. The amount shown above is the net present value of the payments to be made by the Company’s tenants on its behalf. Future minimum lease obligations under non-cancelable operating and finance leases as of December 31, 2020 are as follows ($ in thousands): Operating (1)(2) Finance (1) 2021 $ 3,797 $ 5,494 2022 6,756 5,604 2023 6,393 5,716 2024 6,309 5,830 2025 6,297 5,946 Thereafter 496 1,567,826 Total undiscounted cash flows 30,048 1,596,416 Present value discount (1) (3,771) (1,445,896) Other adjustments (2) 23,795 — Lease liabilities $ 50,072 $ 150,520 (1) The weighted average remaining lease term for the Company’s operating leases, excluding operating leases for which the Company’s tenants pay rent on its behalf, was 5.6 years and the weighted average discount rate was 5.0% . The weighted average remaining lease term for the Company’s finance leases was 97 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. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and December 31, 2020 ($ in thousands): (1) Derivative Liabilities Balance Sheet Fair As of September 30, 2021 Location Value Derivatives Designated in Hedging Relationships Interest rate swaps Accounts payable, accrued expenses and other liabilities $ 11,723 Total $ 11,723 As of December 31, 2020 Derivatives Designated in Hedging Relationships Interest rate swaps Accounts payable, accrued expenses and other liabilities $ 18,926 Total $ 18,926 (1) Over the next 12 months, the Company expects that $9.1 million related to cash flow hedges will be reclassified from “Accumulated other comprehensive income (loss)” as an increase to interest expense. |
Schedule of derivative financial instruments on consolidated statements of operations and comprehensive income | The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Amount of Gain Amount of Gain Location of Gain (Loss) Recognized in (Loss) Reclassified (Loss) Accumulated Other from Accumulated Derivatives Designated in When Recognized in Comprehensive Other Comprehensive Hedging Relationships Income Income Income into Earnings For the Three Months Ended September 30, 2021 Interest rate swaps Interest expense $ 278 $ (2,050) Interest rate swaps Earnings from equity method investments (5) (633) For the Three Months Ended September 30, 2020 Interest rate swaps Interest expense $ (401) $ (2,038) Interest rate swaps Earnings from equity method investments 598 (333) For the Nine Months Ended September 30, 2021 Interest rate swaps Interest expense $ 2,834 $ (6,183) Interest rate swaps Earnings from equity method investments 8,649 (1,324) For the Nine Months Ended September 30, 2020 Interest rate swaps Interest Expense $ (15,371) $ (4,926) Interest rate swaps Earnings from equity method investments (15,559) (866) |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of cumulative redeemable preferred stock outstanding by series | Cumulative Preferential Cash Dividends (1)(2) Shares Issued and Annual Carrying Outstanding Par Liquidation Rate per Dividend Value Series (in thousands) Value Preference (3) Annum per share (in thousands) 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 30-day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Company’s Board of Directors for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date. (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, 2021 and 2020. The character of the 2020 dividends was 100% return of capital. 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, 2021 December 31, 2020 Unrealized gains on available-for-sale securities $ 3,681 $ 4,594 Unrealized losses on cash flow hedges (38,031) (53,075) Unrealized losses on cumulative translation adjustment — (4,199) Accumulated other comprehensive loss $ (34,350) $ (52,680) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of performance incentive plans | The following is a summary of the status of the Company’s equity-classified iPIP plans and changes during the nine months ended September 30, 2021. iPIP Investment Pool 2019-2020 2021-2022 Points at beginning of period 97.40 — Granted — 94.75 Forfeited (2.20) (10.00) Points at end of period 95.20 84.75 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, 2021. iPIP Investment Pool 2013 ‑ 2014 2015 ‑ 2016 2017 ‑ 2018 Points at beginning of period 80.17 70.40 73.34 Granted — — 2.00 Points at end of period 80.17 70.40 75.34 |
Schedule of restricted stock units activity | Nonvested at beginning of period 531 Granted 372 Vested (112) Forfeited (32) Nonvested at end of period 759 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 2020 2021 2020 Net income (loss) $ 130,994 $ 6,451 $ 127,567 $ (20,793) Net income attributable to noncontrolling interests (3,264) (2,646) (8,037) (8,435) Preferred dividends (5,874) (5,874) (17,622) (17,622) Net income (loss) allocable to common shareholders for basic and diluted earnings per common share $ 121,856 $ (2,069) $ 101,908 $ (46,850) |
Schedule of earnings per share allocable to common shares | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Earnings allocable to common shares: Numerator for basic earnings per share: Net income (loss) attributable to iStar Inc. and allocable to common shareholders $ 121,856 $ (2,069) $ 101,908 $ (46,850) Numerator for diluted earnings per share: Net income (loss) allocable to common shareholders $ 121,856 $ (2,069) $ 101,908 $ (46,850) Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 71,299 75,033 72,675 76,232 Add: Effect of assumed shares issued under treasury stock method for restricted stock units 221 — 206 — Add: Effect of convertible debt 8,967 — 5,521 — Weighted average common shares outstanding for basic and diluted earnings per common share 80,487 75,033 78,402 76,232 Basic and diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ 1.71 $ (0.03) $ 1.40 $ (0.61) Diluted earnings per common share: (1) Net income (loss) allocable to common shareholders $ 1.51 $ (0.03) $ 1.30 $ (0.61) (1) For the three and nine months ended September 30, 2020, no shares of common stock would have been issuable upon conversion of the 3.125% Convertible Notes, and therefore the 3.125% Convertible Notes had no effect on diluted EPS for such periods. |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Quoted market Significant prices in other Significant active observable unobservable markets inputs inputs Total (Level 1) (Level 2) (Level 3) As of September 30, 2021 Recurring basis: Derivative liabilities (1) $ 11,723 $ — $ 11,723 $ — Available-for-sale securities (1) 27,535 — — 27,535 Non-recurring basis: Impaired real estate available and held for sale (2) 1,682 — — 1,682 Other investments (3) 98,461 — 98,461 — As of December 31, 2020 Recurring basis: Derivative liabilities (1) 18,926 — 18,926 — Available-for-sale securities (1) 25,274 — — 25,274 Non-recurring basis: Impaired land and development (4) 6,078 — — 6,078 (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) The Company recorded a $0.4 million impairment on an operating property held for sale with an estimated fair value of $1.7 million. The estimated fair value is based on an executed sales contract with a third party. (3) During the nine months ended September 30, 2021, 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. (4) The Company recorded a $1.3 million impairment on a land and development asset with an estimated fair value of $6.1 million. The estimated fair value is based on future cash flows expected to be received. |
Summary of changes in Level 3 available-for-sale securities reported at fair value | The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the nine months ended September 30, 2021 and 2020 ($ in thousands): 2021 2020 Beginning balance $ 25,274 $ 23,896 Purchases 3,375 — Repayments (201) (460) Unrealized gains (losses) recorded in other comprehensive income (913) 1,195 Ending balance $ 27,535 $ 24,631 |
Schedule of carrying value and fair value of financial instruments | As of September 30, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Net investment in leases (1) $ 477 $ 497 $ 429 $ 431 Loans receivable and other lending investments, net (1) 406 436 732 772 Cash and cash equivalents (2) 299 299 99 99 Restricted cash (2) 56 56 52 52 Loan participations payable, net (1) — — 43 43 Debt obligations, net (1)(3) 3,283 3,643 3,287 3,414 (1) The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loan participations payable, net and debt obligations, net are classified as Level 3 within the fair value hierarchy. (2) The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy. (3) As of September 30, 2021 and December 31, 2020, the fair value of the Company’s 3.125% Senior Convertible Notes was $527.2 million and $338.8 million, respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial measures for each segment based on which performance is evaluated | The Company evaluates performance-based on the following financial measures for each segment. The Company’s segment information is as follows ($ in thousands): Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Three Months Ended September 30, 2021 Operating lease income $ 40,659 $ — $ 3,637 $ 96 $ — $ 44,392 Interest income 1,630 6,321 — — — 7,951 Interest income from sales-type leases 9,578 — — — — 9,578 Other income 4,767 1,095 16,869 3,189 14,275 40,195 Land development revenue — — — 93,369 — 93,369 Earnings (losses) from equity method investments 74,889 872 1,129 10,836 1,483 89,209 Income from sales of real estate — — 25,611 — — 25,611 Total revenue and other earnings 131,523 8,288 47,246 107,490 15,758 310,305 Real estate expense (5,446) — (9,184) (4,094) — (18,724) Land development cost of sales — — — (87,380) — (87,380) Other expense (1,327) (270) — (64) (350) (2,011) Allocated interest expense (26,467) (3,331) (1,641) (3,679) (4,353) (39,471) Allocated general and administrative (2) (5,487) (958) (473) (2,173) (5,029) (14,120) Segment profit (loss) (3) $ 92,796 $ 3,729 $ 35,948 $ 10,100 $ 6,026 $ 148,599 Other significant items: Provision for (recovery of) loan losses $ 54 $ (1,610) $ — $ — $ — $ (1,556) Provision for losses on net investment in leases 131 — — — — 131 Impairment of assets 757 — 422 — — 1,179 Depreciation and amortization 13,114 — 1,385 228 129 14,856 Capitalized expenditures 969 — 121 7,416 — 8,506 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 non-cash 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 Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Nine Months Ended September 30, 2021 Operating lease income $ 123,926 $ — $ 13,176 $ 279 $ — $ 137,381 Interest income 3,696 23,878 — — — 27,574 Interest income from sales-type leases 26,895 — — — — 26,895 Other income 14,213 1,245 23,159 5,894 20,038 64,549 Land development revenue — — — 157,936 — 157,936 Earnings (losses) from equity method investments 98,604 2,092 (5,553) 15,456 4,076 114,675 Income from sales of real estate 2,114 — 26,319 — — 28,433 Total revenue and other earnings 269,448 27,215 57,101 179,565 24,114 557,443 Real estate expense (21,065) — (19,238) (13,604) — (53,907) Land development cost of sales — — — (147,507) — (147,507) Other expense (1,327) (422) — (64) (662) (2,475) Allocated interest expense (76,888) (11,737) (5,714) (11,481) (12,631) (118,451) Allocated general and administrative (2) (17,544) (3,659) (1,797) (6,968) (15,686) (45,654) Segment profit (loss) (3) $ 152,624 $ 11,397 $ 30,352 $ (59) $ (4,865) $ 189,449 Other significant items: Recovery of loan losses $ (202) $ (7,411) $ — $ — $ — $ (7,613) Recovery of losses on net investment in leases (1,735) — — — — (1,735) Impairment of assets 2,286 — 679 — — 2,965 Depreciation and amortization 39,255 — 4,593 674 449 44,971 Capitalized expenditures 2,300 — 610 16,727 — 19,637 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 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 As of September 30, 2021 Real estate, net $ 1,263,881 $ — $ 93,043 $ — $ — $ 1,356,924 Real estate available and held for sale — — 1,983 — — 1,983 Total real estate 1,263,881 — 95,026 — — 1,358,907 Net investment in leases 477,360 — — — — 477,360 Land and development, net — — — 302,845 — 302,845 Loans receivable and other lending investments, net 47,555 357,954 — — — 405,509 Loan receivable held for sale 42,683 — — — — 42,683 Other investments 1,213,804 47,936 43,659 537 113,830 1,419,766 Total portfolio assets 3,045,283 405,890 138,685 303,382 113,830 4,007,070 Cash and other assets 795,095 Total assets $ 4,802,165 As of December 31, 2020 Real estate, net $ 1,291,903 $ — $ 192,378 $ — $ — $ 1,484,281 Real estate available and held for sale — — 5,212 — — 5,212 Total real estate 1,291,903 — 197,590 — — 1,489,493 Net investment in leases 429,101 — — — — 429,101 Land and development, net — — — 430,663 — 430,663 Loans receivable and other lending investments, net 45,398 686,932 — — — 732,330 Other investments 1,016,710 — 58,739 31,200 69,911 1,176,560 Total portfolio assets $ 2,783,112 $ 686,932 $ 256,329 $ 461,863 $ 69,911 4,258,147 Cash and other assets 603,661 Total assets $ 4,861,808 (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 $ 3.0 million and $23.3 million for the three and nine months ended September 30, 2021, respectively, and $ 5.7 million and $ 26.7 million for the three and nine months ended September 30, 2020, 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, 2021 2020 2021 2020 Segment profit $ 148,599 $ 32,934 $ 189,449 $ 74,077 Less: Recovery of (provision for) loan losses 1,556 1,976 7,613 (4,093) Less: (Provision for) recovery of losses on net investment in leases (131) (175) 1,735 (2,001) Less: Impairment of assets (1,179) — (2,965) (6,491) Less: Stock-based compensation expense (3,001) (5,661) (23,300) (26,675) Less: Depreciation and amortization (14,856) (14,621) (44,971) (43,407) Less: Income tax benefit (expense) 6 (78) 6 (165) Less: Loss on early extinguishment of debt, net — (7,924) — (12,038) Net income (loss) $ 130,994 $ 6,451 $ 127,567 $ (20,793) |
Schedule of reconciliation of segment profit to income (loss) | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Segment profit $ 148,599 $ 32,934 $ 189,449 $ 74,077 Less: Recovery of (provision for) loan losses 1,556 1,976 7,613 (4,093) Less: (Provision for) recovery of losses on net investment in leases (131) (175) 1,735 (2,001) Less: Impairment of assets (1,179) — (2,965) (6,491) Less: Stock-based compensation expense (3,001) (5,661) (23,300) (26,675) Less: Depreciation and amortization (14,856) (14,621) (44,971) (43,407) Less: Income tax benefit (expense) 6 (78) 6 (165) Less: Loss on early extinguishment of debt, net — (7,924) — (12,038) Net income (loss) $ 130,994 $ 6,451 $ 127,567 $ (20,793) |
Business and Organization (Deta
Business and Organization (Details) $ in Billions | Sep. 30, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment across a range of real estate sectors over the past two decades | $ 40 |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |||
Real estate | ||||||
Real estate, at cost | [1] | $ 1,657,866 | $ 1,752,053 | |||
Less: accumulated depreciation | [1] | (300,942) | (267,772) | |||
Real estate, net | [1] | 1,356,924 | 1,484,281 | |||
Land and development, net | [1] | 302,845 | 430,663 | |||
Other investments | [1] | 1,419,766 | 1,176,560 | |||
Cash and cash equivalents | 298,886 | [1] | 98,633 | [1] | $ 88,187 | |
Accrued interest and operating lease income receivable, net | [1] | 5,046 | 10,061 | |||
Deferred operating lease income receivable, net | [1] | 66,002 | 58,128 | |||
Deferred expenses and other assets, net | [1] | 282,546 | 293,112 | |||
Total assets | [1] | 4,802,165 | 4,861,808 | |||
LIABILITIES | ||||||
Accounts payable, accrued expenses and other liabilities | [1] | 300,461 | 317,402 | |||
Debt obligations, net | [1] | 3,282,598 | 3,286,975 | |||
Total liabilities | [1] | 3,735,940 | 3,797,425 | |||
Consolidated VIEs | ||||||
Real estate | ||||||
Real estate, at cost | 901,254 | 899,110 | ||||
Less: accumulated depreciation | (80,409) | (61,917) | ||||
Real estate, net | 820,845 | 837,193 | ||||
Land and development, net | 190,929 | 240,137 | ||||
Other investments | 26 | 35 | ||||
Cash and cash equivalents | 25,114 | 22,571 | ||||
Accrued interest and operating lease income receivable, net | 1,282 | 1,472 | ||||
Deferred operating lease income receivable, net | 36,665 | 29,428 | ||||
Deferred expenses and other assets, net | 119,127 | 122,591 | ||||
Total assets | 1,193,988 | 1,253,427 | ||||
LIABILITIES | ||||||
Accounts payable, accrued expenses and other liabilities | 74,307 | 115,581 | ||||
Debt obligations, net | 478,567 | 488,719 | ||||
Total liabilities | 552,874 | $ 604,300 | ||||
Unconsolidated VIEs | ||||||
LIABILITIES | ||||||
Carrying value of the investments | 149,400 | |||||
Variable interest entity unfunded commitment | $ 7,600 | |||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt obligations, net | [1] | $ 3,282,598 | $ 3,286,975 | ||
Retained earnings | [1] | (2,225,552) | (2,316,972) | ||
Additional paid-in capital | [1] | $ (3,127,401) | (3,240,535) | ||
3.125% Senior Convertible Notes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stated interest rate | 3.125% | 3.125% | |||
3.125% Senior Convertible Notes | Unsecured notes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt obligations, net | $ 275,100 | ||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | |
Accounting Standards Update 2020-06 | Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt obligations, net | $ 10,000 | ||||
Retained earnings | 15,900 | ||||
Additional paid-in capital | $ 25,900 | ||||
Accounting Standards Update 2020-06 | Period of Adoption, Adjustment | 3.125% Senior Convertible Notes | Unsecured notes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stated interest rate | 3.125% | ||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Real Estate (Schedule of Real E
Real Estate (Schedule of Real Estate Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | |||
Less: accumulated depreciation | [1] | $ (300,942) | $ (267,772) |
Real estate, net | [1] | 1,356,924 | 1,484,281 |
Real estate available and held for sale | [1] | 1,983 | 5,212 |
Total real estate | [1] | 1,358,907 | 1,489,493 |
Net Lease | |||
Real Estate Properties [Line Items] | |||
Land, at cost | 188,418 | 188,418 | |
Buildings and improvements, at cost | 1,355,984 | 1,353,683 | |
Less: accumulated depreciation | (280,521) | (250,198) | |
Real estate, net | 1,263,881 | 1,291,903 | |
Real estate available and held for sale | 0 | 0 | |
Total real estate | 1,263,881 | 1,291,903 | |
Net Lease | iStar Net Lease I LLC | |||
Real Estate Properties [Line Items] | |||
Real estate, net | 741,600 | 755,500 | |
Operating Properties | |||
Real Estate Properties [Line Items] | |||
Land, at cost | 6,830 | 103,530 | |
Buildings and improvements, at cost | 106,634 | 106,422 | |
Less: accumulated depreciation | (20,421) | (17,574) | |
Real estate, net | 93,043 | 192,378 | |
Real estate available and held for sale | 1,983 | 5,212 | |
Total real estate | 95,026 | 197,590 | |
Real Estate Properties | |||
Real Estate Properties [Line Items] | |||
Land, at cost | 195,248 | 291,948 | |
Buildings and improvements, at cost | 1,462,618 | 1,460,105 | |
Less: accumulated depreciation | (300,942) | (267,772) | |
Real estate, net | 1,356,924 | 1,484,281 | |
Real estate available and held for sale | 1,983 | 5,212 | |
Total real estate | 1,358,907 | 1,489,493 | |
Residential Operating Properties | |||
Real Estate Properties [Line Items] | |||
Real estate available and held for sale | $ 2,000 | $ 5,200 | |
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Real Estate (Net Lease Venture)
Real Estate (Net Lease Venture) (Details) | Sep. 30, 2021 |
Schedule of Equity Method Investments [Line Items] | |
Asset acquisition, partner ownership percentage | 47.50% |
iStar Net Lease I LLC | Net Lease | |
Schedule of Equity Method Investments [Line Items] | |
Asset acquisition, ownership percentage | 51.90% |
Asset acquisition, related party ownership percentage | 0.60% |
Asset acquisition, related party promote fee percentage | 50.00% |
Real Estate (Dispositions) (Det
Real Estate (Dispositions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | |
Real Estate [Line Items] | |||||
Net proceeds from sales of real estate | $ 140,576 | $ 42,684 | |||
Impairment of assets | $ 1,179 | $ 0 | 2,965 | 6,491 | |
Net Lease | |||||
Real Estate [Line Items] | |||||
Net proceeds from sales of real estate | 7,500 | ||||
Impairment of assets | $ 1,700 | ||||
Operating Properties | |||||
Real Estate [Line Items] | |||||
Real estate asset held for sale | $ 96,800 | ||||
Proceeds from sale of real estate held for sale | 125,000 | ||||
Gain on sale of real estate held for sale | $ 25,600 |
Real Estate (Impairments) (Deta
Real Estate (Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | ||||
Impairment of real estate - Held for sale | $ 0.4 | $ 3 | ||
Impairment of real estate | $ 1.3 | |||
Net Lease | ||||
Real Estate Properties [Line Items] | ||||
Impairment of real estate | $ 1.7 | |||
Operating Properties | ||||
Real Estate Properties [Line Items] | ||||
Impairment of real estate - Held for sale | $ 0.4 | $ 0.4 |
Real Estate (Tenant Reimburseme
Real Estate (Tenant Reimbursements) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate [Abstract] | ||||
Tenant expense reimbursements | $ 5.3 | $ 5.8 | $ 17.4 | $ 17.1 |
Real Estate (Allowance for Doub
Real Estate (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate Tenant Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts receivable | $ 0.4 | $ 1.7 |
Real Estate (Future Minimum Ope
Real Estate (Future Minimum Operating Lease Payments) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Net Lease | |
Real Estate Properties [Line Items] | |
2021 (remaining three months) | $ 32,800 |
2022 | 133,616 |
2023 | 125,330 |
2024 | 119,714 |
2025 | 123,248 |
Thereafter | 1,385,609 |
Operating Properties | |
Real Estate Properties [Line Items] | |
2021 (remaining three months) | 1,455 |
2022 | 6,226 |
2023 | 5,966 |
2024 | 5,913 |
2025 | 5,318 |
Thereafter | $ 7,825 |
Net Investment in Leases (Narra
Net Investment in Leases (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2021USD ($)lease | May 31, 2019USD ($)property | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)lease | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | [1] | |||
Net investment in leases [Line Items] | |||||||||||
Obligation to acquire the Ground Leases or fund the leasehold improvement allowances if certain construction conditions are not met within a specified time period | $ 0 | ||||||||||
Payments to acquire real estate assets | $ 56,700 | ||||||||||
Number of properties acquired from lessee | 2 | 7 | |||||||||
Purchase price for properties acquired from lessee | $ 42,000 | $ 44,100 | |||||||||
Number of ground leases entered into | lease | 2 | ||||||||||
Loan receivable held for sale | $ 42,683 | $ 42,683 | |||||||||
Extension of existing master net leases | 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 | 477,360 | [1] | 477,360 | [1] | $ 429,101 | |||||
Cash interest income from sales-type leases | 7,000 | $ 1,500 | 7,300 | $ 10,700 | |||||||
Noncash interest income from sales-type leases | $ 2,500 | $ 6,900 | 19,600 | $ 14,300 | |||||||
Net Lease | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Net proceeds from net investment in leases | 8,700 | ||||||||||
Impairment loss | $ 2,300 | ||||||||||
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 | ||||||||||
Loans Receivable Held-for-sale | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Loan receivable held for sale | $ 42,000 | ||||||||||
Land Parcel One | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Purchase price for properties acquired from lessee | $ 42,000 | ||||||||||
Number of ground leases classified as sales-type lease | lease | 1 | ||||||||||
Land Parcel One | Maximum | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Leasehold improvement allowance, Ground Leases | $ 83,000 | ||||||||||
Land Parcel Two | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Purchase price for properties acquired from lessee | $ 42,000 | ||||||||||
Number of ground leases accounted for as a financing transaction | lease | 1 | ||||||||||
Land Parcel Two | Maximum | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Leasehold improvement allowance, Ground Leases | $ 83,000 | ||||||||||
Land Parcel Two | Loans Receivable Held-for-sale | |||||||||||
Net investment in leases [Line Items] | |||||||||||
Loan receivable held for sale | $ 42,000 | ||||||||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Net Investment in Leases - Net
Net Investment in Leases - Net Investment in Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | May 31, 2019 | ||
Leases [Abstract] | ||||||||
Total undiscounted cash flows | $ 1,538,758 | $ 1,020,921 | ||||||
Unguaranteed estimated residual value | 367,804 | 345,284 | ||||||
Present value discount | (1,420,066) | (926,233) | ||||||
Allowance for losses on net investment in leases | (9,136) | $ (9,005) | (10,871) | $ (11,113) | $ (10,937) | |||
Net investment in leases | $ 477,360 | [1] | $ 429,101 | [1] | $ 424,100 | |||
Risk rating | 2.00% | |||||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Net Investment in Leases (Futur
Net Investment in Leases (Future Minimum Lease Payments to be Collected Under Sales-Type Leases) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Amount | |
2021 (remaining three months) | $ 7,372 |
2022 | 30,590 |
2023 | 43,272 |
2024 | 43,029 |
2025 | 31,955 |
Thereafter | 1,382,540 |
Total undiscounted cash flows | $ 1,538,758 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for losses on net investment in leases at beginning of period | $ 9,005 | $ 10,937 | $ 10,871 | |
(Recovery of) provision for losses on net investment in leases | 131 | 176 | (1,735) | $ 2,002 |
Allowance for losses on net investment in leases at end of period | $ 9,136 | $ 11,113 | $ 9,136 | 11,113 |
Period of Adoption, Adjustment | ASU 2016-13 | ||||
Sales-type Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for losses on net investment in leases at beginning of period | $ 9,111 |
Land and Development (Schedule
Land and Development (Schedule of Land and Development Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | |||
Total land and development, net | [1] | $ 302,845 | $ 430,663 |
Land and Land Development | |||
Real Estate Properties [Line Items] | |||
Land and land development, at cost | 313,428 | 441,201 | |
Less: accumulated depreciation | (10,583) | (10,538) | |
Total land and development, net | $ 302,845 | $ 430,663 | |
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Land and Development (Narrative
Land and Development (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Real Estate Properties [Line Items] | ||||
Revenues | $ 195,485 | $ 115,054 | $ 414,335 | $ 384,930 |
Impairment of assets | 1,179 | 0 | 2,965 | 6,491 |
Land development revenue | ||||
Real Estate Properties [Line Items] | ||||
Revenues | 93,369 | 20,502 | 157,936 | 116,254 |
Cost of sales expense | $ 87,380 | $ 21,358 | $ 147,507 | 114,704 |
Land and Land Development | ||||
Real Estate Properties [Line Items] | ||||
Impairment of assets | $ 1,500 |
Loans Receivable and Other Le_3
Loans Receivable and Other Lending Investments, net (Schedule of Loans Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | $ 171,296 | $ 162,538 | |||||
Total gross carrying value of loans receivable and other lending investments | 411,879 | 745,500 | |||||
Allowance for loan losses | (6,370) | (13,170) | |||||
Total loans receivable and other lending investments, net | [1] | 405,509 | 732,330 | ||||
Financing receivables | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | 48,503 | 46,549 | |||||
Held-to-maturity debt securities | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | 95,258 | 90,715 | |||||
Available-for-sale debt securities | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | 27,535 | 25,274 | |||||
Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 240,583 | 582,962 | |||||
Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 206,878 | 485,655 | |||||
Commercial Portfolio Segment | Corporate/Partnership loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 21,457 | 85,667 | |||||
Commercial Portfolio Segment | Subordinate mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 12,248 | 11,640 | |||||
Construction Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 195,213 | 514,833 | |||||
Allowance for loan losses | (1,491) | $ (1,640) | (6,541) | $ (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 | 195,213 | 514,833 | |||||
Construction Loans | Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 191,697 | 449,733 | |||||
Construction Loans | Commercial Portfolio Segment | Corporate/Partnership loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 3,516 | 65,100 | |||||
Completed construction | Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Percentage of construction loans | 98.00% | ||||||
Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 45,370 | 68,129 | |||||
Allowance for loan losses | (754) | $ (1,619) | (1,643) | $ (478) | $ (905) | $ (265) | |
Loans | Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 15,181 | 35,922 | |||||
Loans | Commercial Portfolio Segment | Corporate/Partnership loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 17,941 | 20,567 | |||||
Loans | Commercial Portfolio Segment | Subordinate mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 12,248 | $ 11,640 | |||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | |
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | $ 13,170 | |||||
(Recovery of) provision for loan losses | $ (1,556) | $ (1,976) | (7,613) | $ 4,093 | ||
Allowance for loan losses at end of period | 6,370 | 6,370 | ||||
Held to Maturity Debt Securities | ||||||
Allowance for loan losses at beginning of period | 2,393 | 111 | 3,093 | |||
(Recovery of) Provision for loan losses | 145 | (56) | (555) | 35 | ||
Allowance for loan losses at end of period | 2,538 | 55 | 2,538 | 55 | ||
Total | ||||||
Allowance for loan losses at beginning of period | 7,135 | 35,612 | 13,170 | 28,634 | ||
(Recovery of) Provision for loan losses | (765) | (2,165) | (6,800) | 4,084 | ||
Allowance for loan losses at end of period | 6,370 | 33,447 | 6,370 | 33,447 | ||
Increase to reserves for loan losses | 100 | 100 | $ 1,000 | |||
Provision for (recovery of) loan losses | (1,600) | (2,000) | (7,600) | 4,100 | ||
Accrued Interest And Operating Lease Income Receivable, Net | ||||||
Total | ||||||
Provision for (recovery of) loan losses | 900 | 900 | ||||
Accounts Payable, Accrued Expenses and Other Liabilities | ||||||
Total | ||||||
Provision for ( recovery of) unfunded commitments | (900) | (700) | (900) | (900) | ||
Period of Adoption, Adjustment | ASU 2016-13 | ||||||
Held to Maturity Debt Securities | ||||||
Allowance for loan losses at beginning of period | 20 | |||||
Total | ||||||
Allowance for loan losses at beginning of period | 729 | |||||
Increase to reserves for loan losses | $ 3,300 | |||||
Period of Adoption, Adjustment | ASU 2016-13 | Accounts Payable, Accrued Expenses and Other Liabilities | ||||||
Total | ||||||
Increase to reserves for loan losses | $ 2,500 | |||||
Construction Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 1,640 | 11,736 | 6,541 | 6,668 | ||
(Recovery of) provision for loan losses | (149) | (2,598) | (5,050) | 2,823 | ||
Allowance for loan losses at end of period | 1,491 | 9,138 | 1,491 | 9,138 | ||
Construction Loans | Period of Adoption, Adjustment | ASU 2016-13 | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | (353) | |||||
Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 1,619 | 905 | 1,643 | 265 | ||
(Recovery of) provision for loan losses | (865) | (427) | (889) | 115 | ||
Allowance for loan losses at end of period | 754 | 478 | 754 | 478 | ||
Loans | Period of Adoption, Adjustment | ASU 2016-13 | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 98 | |||||
Financing receivables | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 893 | 1,159 | 1,150 | |||
(Recovery of) provision for loan losses | 54 | 17 | (203) | 212 | ||
Allowance for loan losses at end of period | 947 | 1,176 | 947 | 1,176 | ||
Financing receivables | Period of Adoption, Adjustment | ASU 2016-13 | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 964 | |||||
Specific receivables | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 590 | 21,701 | 743 | 21,701 | ||
(Recovery of) provision for loan losses | 50 | 899 | (103) | 899 | ||
Allowance for loan losses at end of period | $ 640 | $ 22,600 | $ 640 | $ 22,600 |
Loans Receivable and Other Le_5
Loans Receivable and Other Lending Investments, net (Investment in Loans and Associated Allowance for Loan Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Other Lending Investments | |||||||
Total | $ 171,296 | $ 162,538 | |||||
Less: Allowance for loan losses | |||||||
Individually evaluated for impairment | (640) | (743) | |||||
Collectively evaluated for impairment | (5,730) | (12,427) | |||||
Total | (6,370) | (13,170) | |||||
Individually Evaluated for Impairment | 58,179 | 52,562 | |||||
Collectively Evaluated for Impairment | 347,330 | 679,768 | |||||
Total loans receivable and other lending investments, net | [1] | 405,509 | 732,330 | ||||
Net discounts | 800 | 800 | |||||
Held-to-maturity debt securities | |||||||
Other Lending Investments | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 95,258 | 90,715 | |||||
Total | 95,258 | 90,715 | |||||
Available-for-sale debt securities | |||||||
Other Lending Investments | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 27,535 | 25,274 | |||||
Total | 27,535 | 25,274 | |||||
Construction Loans | |||||||
Loans | |||||||
Individually Evaluated for Impairment | 58,819 | 53,305 | |||||
Collectively Evaluated for Impairment | 136,394 | 461,528 | |||||
Total | 195,213 | 514,833 | |||||
Less: Allowance for loan losses | |||||||
Total | (1,491) | $ (1,640) | (6,541) | $ (9,138) | $ (11,736) | $ (6,668) | |
Loans | |||||||
Loans | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 45,370 | 68,129 | |||||
Total | 45,370 | 68,129 | |||||
Less: Allowance for loan losses | |||||||
Total | (754) | (1,619) | (1,643) | (478) | (905) | $ (265) | |
Net discounts | 200 | 2,300 | |||||
Financing receivables | |||||||
Loans | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 48,503 | 46,549 | |||||
Total | 48,503 | 46,549 | |||||
Less: Allowance for loan losses | |||||||
Total | $ (947) | $ (893) | $ (1,150) | $ (1,176) | $ (1,159) | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Loans Receivable and Other Le_6
Loans Receivable and Other Lending Investments, net (Credit Characteristics for Performing Loans) (Details) $ in Thousands | Sep. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan |
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Number of non accrual loans | loan | 1 | 1 |
Commercial Portfolio Segment | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | $ 240,583 | $ 582,962 |
Commercial Portfolio Segment | Senior mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 206,878 | 485,655 |
Loan on non-accrual status | 58,800 | |
Commercial Portfolio Segment | Corporate/Partnership loans | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 21,457 | 85,667 |
Commercial Portfolio Segment | Subordinate mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Total | 12,248 | $ 11,640 |
Commercial Portfolio Segment | Performing Financial Instruments | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 48,503 | |
2018 | 166,235 | |
2017 | 0 | |
Prior to 2017 | 15,529 | |
Total | 230,267 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 144,778 | |
2017 | 0 | |
Prior to 2017 | 3,281 | |
Total | 148,059 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 1.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 1.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 2.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 11,900 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 11,900 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 2.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 3.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 109,137 | |
2017 | 0 | |
Prior to 2017 | 3,281 | |
Total | 112,418 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 3.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 23,741 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 23,741 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 4.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 4.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | Risk Rating 5.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 21,457 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 21,457 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 1.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 1.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 3,516 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 3,516 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 2.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 2.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 3.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 3.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 4.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 17,941 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 17,941 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 4.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Corporate/Partnership loans | Risk Rating 5.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 12,248 | |
Total | 12,248 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 1.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 1.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 2.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 2.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 3.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 12,248 | |
Total | 12,248 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 3.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 4.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 4.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Subordinate mortgages | Risk Rating 5.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 48,503 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 48,503 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 1.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 1.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 2.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 48,503 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 48,503 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 2.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 3.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 3.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 4.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 4.5 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | 0 | |
Commercial Portfolio Segment | Performing Financial Instruments | Financing receivables | Risk Rating 5.0 | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior to 2017 | 0 | |
Total | $ 0 |
Loans Receivable and Other Le_7
Loans Receivable and Other Lending Investments, net (Credit Characteristics by Payment Status) (Details) - Commercial Portfolio Segment - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Recorded investment in loans, aged by payment status and presented by class | ||
Current | $ 181,764 | $ 497,515 |
Total Past Due | 58,819 | 85,447 |
Total | 240,583 | 582,962 |
Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 85,447 |
Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 58,819 | 0 |
Senior mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 148,059 | 443,154 |
Total Past Due | 58,819 | 42,501 |
Total | 206,878 | 485,655 |
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 | 42,501 |
Senior mortgages | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 58,819 | 0 |
Corporate/Partnership loans | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 21,457 | 42,721 |
Total Past Due | 0 | 42,946 |
Total | 21,457 | 85,667 |
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 | 42,946 |
Corporate/Partnership loans | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total Past Due | 0 | 0 |
Subordinate mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 12,248 | 11,640 |
Total Past Due | 0 | 0 |
Total | 12,248 | 11,640 |
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 |
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, 2021USD ($)loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |||||
(Recovery of) provision for loan losses | $ (1,556,000) | $ (1,976,000) | $ (7,613,000) | $ 4,093,000 | |
Impaired Loans | |||||
Number of non accrual loans | loan | 1 | 1 | 1 | ||
Interest income on Impaired loans | $ 0 | $ 0 | |||
Commercial Portfolio Segment | |||||
Impaired Loans | |||||
Amortized Cost | $ 58,819,000 | 58,819,000 | $ 53,305,000 | ||
Unpaid Principal Balance | 58,069,000 | 58,069,000 | 52,552,000 | ||
Related Allowance | (640,000) | (640,000) | (743,000) | ||
Commercial Portfolio Segment | Senior mortgages | |||||
Impaired Loans | |||||
Amortized Cost | 58,819,000 | 58,819,000 | 53,305,000 | ||
Unpaid Principal Balance | 58,069,000 | 58,069,000 | 52,552,000 | ||
Related Allowance | $ (640,000) | $ (640,000) | $ (743,000) |
Loans Receivable and Other Le_9
Loans Receivable and Other Lending Investments, net (Loan Receivable Held for Sale) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | May 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||||||||
Income from sales of real estate | $ 25,611 | $ 6,055 | $ 28,433 | $ 6,118 | |||||
Purchase price for properties acquired | $ 42,000 | $ 44,100 | |||||||
Loan receivable held for sale | $ 42,683 | $ 42,683 | $ 42,683 | $ 42,683 | |||||
SAFE | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Amount of loan funded | $ 16,100 | ||||||||
Deferred purchase price | 11,900 | ||||||||
Leasehold improvement allowance | $ 52,000 | ||||||||
Payment of deferred purchase price | $ 6,000 | ||||||||
Consideration received | 22,100 | ||||||||
Income from sales of real estate | $ 0 | ||||||||
Loans Receivable Held-for-sale | |||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||
Loan receivable held for sale | $ 42,000 |
Loans Receivable and Other L_10
Loans Receivable and Other Lending Investments, net (Other Lending Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale Securities | ||
Amortized Cost Basis | $ 23,855 | |
Estimated Fair Value | 27,535 | |
Held-to-Maturity Securities | ||
Amortized Cost Basis | 95,258 | |
Estimated Fair Value | 95,258 | |
Total Other Lending Investments | ||
Face Value | 123,855 | $ 120,680 |
Amortized Cost Basis | 119,113 | 111,395 |
Net Unrealized Gain | 3,680 | 4,594 |
Estimated Fair Value | 122,793 | 115,989 |
Net Carrying Value | 122,793 | 115,989 |
Municipal debt securities | ||
Available-for-Sale Securities | ||
Face Value | 23,855 | 20,680 |
Amortized Cost Basis | 23,855 | 20,680 |
Net Unrealized Gain | 3,680 | 4,594 |
Estimated Fair Value | 27,535 | 25,274 |
Net Carrying Value | 27,535 | 25,274 |
Debt securities | ||
Held-to-Maturity Securities | ||
Face Value | 100,000 | 100,000 |
Amortized Cost Basis | 95,258 | 90,715 |
Estimated Fair Value | 95,258 | 90,715 |
Net Carrying Value | $ 95,258 | $ 90,715 |
Loans Receivable and Other L_11
Loans Receivable and Other Lending Investments, net (Maturities of Company Securities) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Amortized Cost Basis | |
Within one year | $ 0 |
After one year through 5 years | 95,258 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Amortized Cost Basis | 95,258 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 95,258 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 95,258 |
Amortized Cost Basis | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 23,855 |
Amortized Cost Basis | 23,855 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 27,535 |
Total | $ 27,535 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | [1] | $ 1,419,766 | $ 1,419,766 | $ 1,176,560 | ||
Earnings (losses) from equity method investments | 89,209 | $ 6,805 | 114,675 | $ 26,003 | ||
Interest expense | 39,471 | 42,407 | 118,451 | 127,748 | ||
Mark-to-market gain | $ 14,000 | 14,000 | $ 19,100 | 23,900 | ||
Safehold Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of shares owned (in shares) | 36 | 36 | ||||
Closing price (in dollars per share) | $ 71.89 | $ 71.89 | ||||
Market value | $ 2,600,000 | $ 2,600,000 | ||||
Dilution gain | 60,200 | 60,700 | 7,900 | |||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | 1,419,766 | 1,419,766 | 1,176,560 | |||
Earnings (losses) from equity method investments | 89,209 | 6,805 | 114,675 | 26,003 | ||
Depreciation expense | 5,100 | 4,600 | 16,200 | 13,400 | ||
Interest expense | 18,500 | 14,600 | 51,700 | 44,000 | ||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Other strategic investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | 161,766 | 161,766 | 69,911 | |||
Earnings (losses) from equity method investments | 2,355 | 205 | 6,169 | (1,953) | ||
Real estate equity investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 1,258,000 | 1,258,000 | 1,106,649 | |||
Earnings (losses) from equity method investments | 86,854 | 6,600 | 108,506 | 27,956 | ||
Real estate equity investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | Safehold Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 1,113,333 | 1,113,333 | 937,712 | |||
Earnings (losses) from equity method investments | 73,475 | 9,331 | 94,590 | 36,905 | ||
Real estate equity investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | iStar Net Lease II LLC (Net Lease Venture II) | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 100,471 | 100,471 | 78,998 | |||
Earnings (losses) from equity method investments | 1,414 | 811 | 4,014 | 1,568 | ||
Real estate equity investments | Equity Method Investment, Nonconsolidated Investee or Group of Investees | Other real estate equity investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 44,196 | 44,196 | $ 89,939 | |||
Earnings (losses) from equity method investments | $ 11,965 | $ (3,542) | $ 9,902 | $ (10,517) | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Other Investments (Safehold Inc
Other Investments (Safehold Inc). (Details) $ / shares in Units, ft² in Millions | Jan. 02, 2019director | Sep. 30, 2021USD ($)$ / sharesshares | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($)ft²agreement | Feb. 28, 2021USD ($) | Jan. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020 | Mar. 31, 2020USD ($)shares | May 31, 2019 | Jan. 31, 2019USD ($)$ / sharesshares | Oct. 31, 2017USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Mar. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Number of limited partnership units purchased (in shares) | shares | 12,500,000 | |||||||||||||||||
Investor units, purchase price per unit (in dollars per share) | $ / shares | $ 20 | |||||||||||||||||
Cash investment in equity method investments | $ 250,000,000 | $ 171,005,000 | $ 194,775,000 | |||||||||||||||
Conversion of stock | 1 | |||||||||||||||||
Restriction period on common stock received as payment | 2 years | |||||||||||||||||
Management agreement, termination fee as multiple of prior year management fee | 3 | 3 | 3 | |||||||||||||||
Income from sales of real estate | $ 25,611,000 | $ 6,055,000 | $ 28,433,000 | 6,118,000 | ||||||||||||||
Payment to acquire purchase option agreement | $ 1,000,000 | |||||||||||||||||
Expenses incurred in acquisition of purchase option agreement | 200,000 | |||||||||||||||||
SAFE | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Expense reimbursements from related party | 1,900,000 | 1,300,000 | 5,600,000 | 3,800,000 | ||||||||||||||
Proceeds from sale of purchase option agreement | $ 1,200,000 | 1,200,000 | ||||||||||||||||
Gain recognized on sale of purchase option agreement | $ 0 | |||||||||||||||||
Number of agreements | agreement | 2 | |||||||||||||||||
Sale price per agreement for sale of land and related Ground Lease, subject to certain conditions being met | $ 42,000,000 | $ 42,000,000 | ||||||||||||||||
Multiple required that may trigger receipt of additional consideration | 1.25 | 1.25 | ||||||||||||||||
Percentage of required return on investment that may trigger receipt of additional consideration | 9.00% | |||||||||||||||||
Management Fees | SAFE | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Management fee revenue from related party | 3,600,000 | 3,200,000 | $ 10,600,000 | 9,300,000 | ||||||||||||||
Maximum | SAFE | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Leasehold improvement allowance, Ground Leases | $ 83,000,000 | $ 83,000,000 | ||||||||||||||||
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 | $ 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 | $ 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 | $ 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 | $ 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 | $ 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 | Maximum | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Management fee equity threshold amount | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | |||||||||||||||
Safehold Inc. | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Purchase option, purchase price to acquire property | $ 215,000,000 | 215,000,000 | ||||||||||||||||
Purchase option, square feet of future office space development | ft² | 1.1 | |||||||||||||||||
Safehold Inc. | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Equity interest | 63.60% | 63.60% | 63.60% | |||||||||||||||
Cash investment in equity method investments | $ 27,900,000 | |||||||||||||||||
Shares acquired (in shares) | shares | 400,000 | |||||||||||||||||
Average cost per share | $ / shares | $ 71.68 | $ 71.68 | $ 71.68 | |||||||||||||||
Safehold Inc. | Private Placement | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Cash investment in equity method investments | $ 50,000,000 | $ 80,000,000 | ||||||||||||||||
Shares acquired (in shares) | shares | 657,894 | 1,700,000 | ||||||||||||||||
Safehold Inc. | Real estate equity investments | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Voting power cap threshold | 41.90% | |||||||||||||||||
Number of director nominees | director | 3 | |||||||||||||||||
Multifamily Development San Jose | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Lessor, operating lease, term of contract (in years) | 99 years | |||||||||||||||||
Leasehold improvement allowance, Ground Leases | $ 7,200,000 | |||||||||||||||||
Interest income | 900,000 | 2,500,000 | ||||||||||||||||
Proceeds from sale of ground lease | $ 34,000,000 | |||||||||||||||||
Income from sales of real estate | $ 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, Washington DC building conversion | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Commitment to provide loan to lessee | $ 13,300,000 | |||||||||||||||||
Interest income | $ 300,000 | $ 800,000 | ||||||||||||||||
Other Real Estate Equity Investment January 2021 | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Equity interest | 53.00% | |||||||||||||||||
Equity method investments | $ 63,300,000 | |||||||||||||||||
Recognized gain or loss | $ 0 | |||||||||||||||||
Other Real Estate Equity Investment September 2021 | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Equity interest | 53.00% | 53.00% | 53.00% | |||||||||||||||
Cash investment in equity method investments | $ 2,700,000 | |||||||||||||||||
Commitment to provide loan to lessee | 75,000,000 | $ 75,000,000 | $ 75,000,000 | |||||||||||||||
Multi-Family Project | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Commitment to provide loan to lessee | $ 75,000,000 | |||||||||||||||||
Income from sales of real estate | 0 | |||||||||||||||||
Consideration received | $ 2,700,000 | |||||||||||||||||
Hotel Property | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Commitment to provide loan to lessee | $ 50,000,000 | |||||||||||||||||
Interest income | $ 400,000 | $ 2,900,000 | ||||||||||||||||
Consideration received | $ 1,900,000 | |||||||||||||||||
Recognized gain or loss | $ 0 | |||||||||||||||||
Ground Lease, Honolulu, Hawaii [Member] | iStar Net Lease II LLC (Net Lease Venture II) | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Lessor, operating lease, term of contract (in years) | 99 years | |||||||||||||||||
Land Parcel One | Maximum | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Leasehold improvement allowance, Ground Leases | $ 83,000,000 | 83,000,000 | ||||||||||||||||
Land Parcel Two | Maximum | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Leasehold improvement allowance, Ground Leases | $ 83,000,000 | $ 83,000,000 |
Other Investments (Net Lease Ve
Other Investments (Net Lease Venture II) (Details) - iStar Net Lease II LLC (Net Lease Venture II) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest | 51.90% | 51.90% | ||
Other income | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Management fee revenue from related party | $ 0.4 | $ 0.4 | $ 1.2 | $ 1.1 |
Other Investments (Other Real E
Other Investments (Other Real Estate Equity Investments) (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021USD ($)loan | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Net proceeds from sales of loans receivable | $ 122,609,000 | $ 0 | ||||
Other real estate equity investments | Minimum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest | 48.00% | 48.00% | ||||
Other real estate equity investments | Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest | 95.00% | 95.00% | ||||
Other real estate equity investments | Operating Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 43,700,000 | $ 43,700,000 | $ 58,700,000 | |||
Other real estate equity investments | Land and Land Development | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 500,000 | $ 500,000 | $ 31,200,000 | |||
Other Real Estate Equity Investment Aug 2018 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest | 50.00% | 50.00% | ||||
Loans receivable, carrying value | $ 33,000,000 | $ 33,000,000 | ||||
Interest income | $ 600,000 | $ 600,000 | $ 1,700,000 | $ 1,800,000 | ||
Other Real Estate Equity Investment January 2021 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest | 53.00% | |||||
Equity method investments | $ 63,300,000 | |||||
Number of loans sold | loan | 2 | |||||
Net proceeds from sales of loans receivable | $ 83,400,000 | |||||
Recognized gain or loss | $ 0 | |||||
Other Real Estate Equity Investment September 2021 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity interest | 53.00% | 53.00% | ||||
Commitment to provide loan to lessee | $ 75,000,000 | $ 75,000,000 |
Other Investments (Summarized I
Other Investments (Summarized Investee Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 195,485 | $ 115,054 | $ 414,335 | $ 384,930 |
Expenses | 179,317 | 113,461 | 429,882 | 425,641 |
Net Income Attributable to Parent | $ 127,730 | $ 3,805 | 119,530 | (29,228) |
Safehold Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 135,001 | 115,518 | ||
Expenses | 88,585 | 73,821 | ||
Net Income Attributable to Parent | $ 51,844 | $ 44,024 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Real Estate Properties [Line Items] | ||||||
Intangible assets, net | $ 146,588 | $ 146,588 | $ 156,041 | |||
Restricted cash | 55,915 | 55,915 | 51,933 | |||
Operating lease right-of-use assets | 43,799 | 43,799 | 48,891 | |||
Other receivables | 11,052 | 11,052 | 10,881 | |||
Other assets | 17,572 | 17,572 | 19,453 | |||
Leasing costs, net | 4,936 | 4,936 | 2,340 | |||
Corporate furniture, fixtures and equipment, net | 1,843 | 1,843 | 2,024 | |||
Deferred financing fees, net | 841 | 841 | 1,549 | |||
Deferred expenses and other assets, net | [1] | 282,546 | 282,546 | 293,112 | ||
Intangible assets, accumulated amortization | 50,800 | 50,800 | 44,400 | |||
Amortization of above market lease | 500 | $ 300 | $ 1,100 | $ 1,000 | ||
Weighted average amortization period | 16 years 2 months 12 days | |||||
Accumulated amortization on leasing costs | 2,100 | $ 2,100 | 2,600 | |||
Accumulated depreciation on corporate furniture, fixtures and equipment | 14,700 | 14,700 | $ 14,300 | |||
In-Place Leases | ||||||
Real Estate Properties [Line Items] | ||||||
Amortization of intangible assets | 2,800 | 2,600 | 8,600 | 7,900 | ||
General and Administrative | ||||||
Real Estate Properties [Line Items] | ||||||
Operating lease, expense | 1,200 | 1,200 | 3,700 | 3,400 | ||
Real Estate Expense | ||||||
Real Estate Properties [Line Items] | ||||||
Operating lease, expense | $ 900 | $ 900 | $ 2,700 | $ 2,600 | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Other Assets and Other Liabilities [Abstract] | ||||||
Other liabilities | $ 65,318 | $ 65,318 | $ 91,513 | |||
Accrued expenses | 112,223 | 112,223 | 94,724 | |||
Operating lease liabilities (see table above) | 47,111 | 47,111 | 50,072 | |||
Accrued interest payable | 28,939 | 28,939 | 32,355 | |||
Intangible liabilities, net | 46,870 | 46,870 | 48,738 | |||
Accounts payable, accrued expenses and other liabilities | [1] | 300,461 | 300,461 | 317,402 | ||
Deferred income | 20,700 | 20,700 | 36,900 | |||
Derivative liabilities | 11,700 | 11,700 | 19,000 | |||
Increase to reserves for loan losses | 100 | 100 | 1,000 | |||
Below market lease, accumulated amortization | 9,000 | 9,000 | $ 7,500 | |||
Amortization of below market lease | $ 600 | $ 600 | $ 1,900 | $ 1,900 | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Loan Participations Payable, _2
Loan Participations Payable, net (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($)item | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable and other lending investments, net | [1] | $ 405,509 | $ 732,330 |
Loan Participations | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable and other lending investments, net | $ 42,500 | ||
Loan Participations Payable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of debt instruments | item | 1 | ||
Loans receivable and other lending investments, net | $ 42,500 | ||
Weighted average interest rate | 6.00% | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Debt Obligations, net (Schedule
Debt Obligations, net (Schedule of Debt) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Sep. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 3,305,916 | $ 3,305,916 | |||||||||||||
Debt discounts and deferred financing costs, net | (23,318) | (23,318) | $ (38,475) | ||||||||||||
Total debt obligations, net | [1] | 3,282,598 | 3,282,598 | 3,286,975 | |||||||||||
Stockholders' equity | 1,066,225 | [1] | $ 1,093,448 | 1,066,225 | [1] | $ 1,093,448 | $ 1,008,706 | 1,064,383 | [1] | $ 1,113,785 | $ 1,237,960 | ||||
Interest costs capitalized | $ 200 | $ 500 | $ 700 | $ 1,600 | |||||||||||
Period of Adoption, Adjustment | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stockholders' equity | (10,019) | $ (12,382) | |||||||||||||
Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt discounts and deferred financing costs, net | $ 10,000 | ||||||||||||||
Total debt obligations, net | $ 10,000 | ||||||||||||||
Senior Term Loan | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.00% | ||||||||||||||
3.125% Senior Convertible Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | |||||||||||
4.75% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 4.75% | 4.75% | |||||||||||||
4.25% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 4.25% | 4.25% | |||||||||||||
5.50% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 5.50% | 5.50% | |||||||||||||
Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 1,193,416 | $ 1,193,416 | 1,212,950 | ||||||||||||
Debt discounts and deferred financing costs, net | (4,892) | (4,892) | |||||||||||||
Total debt obligations, net | 1,188,524 | 1,188,524 | |||||||||||||
Assets served as collateral | 2,000,000 | 2,000,000 | |||||||||||||
Secured Debt | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | 0 | $ 0 | 0 | ||||||||||||
Debt instrument term | 1 year | ||||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.00% | ||||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.00% | 1.00% | |||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | Interest Rate Category Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.00% | ||||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.50% | ||||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Maximum | Interest Rate Category Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.50% | ||||||||||||||
Secured Debt | Revolving Credit Facility | Federal Funds Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 0.50% | ||||||||||||||
Secured Debt | Revolving Credit Facility | Base Rate | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.00% | ||||||||||||||
Secured Debt | Revolving Credit Facility | Base Rate | Minimum | Interest Rate Category One | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.00% | ||||||||||||||
Secured Debt | Revolving Credit Facility | Base Rate | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.50% | ||||||||||||||
Secured Debt | Revolving Credit Facility | Base Rate | Maximum | Interest Rate Category One | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.50% | ||||||||||||||
Secured Debt | Senior Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | 491,875 | $ 491,875 | 491,875 | ||||||||||||
Secured Debt | Senior Term Loan | LIBOR | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 2.75% | 2.75% | |||||||||||||
Secured Debt | Senior Term Loan | LIBOR | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.75% | ||||||||||||||
Secured Debt | Senior Term Loan | Federal Funds Rate | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 0.50% | ||||||||||||||
Secured Debt | Mortgages Collateralized by Net Lease Assets | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 701,541 | $ 701,541 | 721,075 | ||||||||||||
Weighted average interest rate | 4.40% | 4.40% | |||||||||||||
Secured Debt | Mortgages Collateralized by Net Lease Assets | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 1.63% | ||||||||||||||
Secured Debt | Mortgages Collateralized by Net Lease Assets | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis point spread on variable interest rate | 7.19% | ||||||||||||||
Unsecured notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 2,012,500 | $ 2,012,500 | 2,012,500 | ||||||||||||
Unsecured notes | 3.125% Senior Convertible Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 287,500 | $ 287,500 | 287,500 | ||||||||||||
Total debt obligations, net | $ 275,100 | ||||||||||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | |||||||||
Convertible debt, conversion ratio (in shares per par value) | 0.0715797 | ||||||||||||||
Convertible debt, conversion price (in dollars per share) | $ 13.97 | $ 13.97 | |||||||||||||
Unamortized discount | $ 10,200 | ||||||||||||||
Contractual interest | $ 2,200 | $ 2,200 | $ 6,700 | $ 6,700 | |||||||||||
Amortization of debt discount | $ 1,300 | $ 3,900 | |||||||||||||
Effective interest rate | 5.20% | 5.20% | |||||||||||||
Unsecured notes | 3.125% Senior Convertible Notes | Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Stated interest rate | 3.125% | ||||||||||||||
Unsecured notes | 4.75% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 775,000 | $ 775,000 | 775,000 | ||||||||||||
Stated interest rate | 4.75% | 4.75% | |||||||||||||
Unsecured notes | 4.25% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 550,000 | $ 550,000 | 550,000 | ||||||||||||
Stated interest rate | 4.25% | 4.25% | |||||||||||||
Unsecured notes | 5.50% Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 400,000 | $ 400,000 | 400,000 | ||||||||||||
Stated interest rate | 5.50% | 5.50% | |||||||||||||
Other Debt Obligations | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 3,305,916 | $ 3,305,916 | 3,325,450 | ||||||||||||
Other Debt Obligations | Trust Preferred Securities | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Total debt obligations | $ 100,000 | $ 100,000 | $ 100,000 | ||||||||||||
Basis point spread on variable interest rate | 1.50% | ||||||||||||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Debt Obligations, net (Future S
Debt Obligations, net (Future Scheduled Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Maturities of Long-term Debt [Abstract] | |||
2021 (remaining six months) | $ 95,495 | ||
2022 | 382,824 | ||
2023 | 491,875 | ||
2024 | 775,000 | ||
2025 | 819,780 | ||
Thereafter | 740,942 | ||
Total principal maturities | 3,305,916 | ||
Debt discounts and deferred financing costs, net | (23,318) | $ (38,475) | |
Total debt obligations, net | [1] | 3,282,598 | 3,286,975 |
Unsecured Debt | |||
Maturities of Long-term Debt [Abstract] | |||
2021 (remaining six months) | 0 | ||
2022 | 287,500 | ||
2023 | 0 | ||
2024 | 775,000 | ||
2025 | 550,000 | ||
Thereafter | 500,000 | ||
Total principal maturities | 2,112,500 | ||
Debt discounts and deferred financing costs, net | (18,426) | ||
Total debt obligations, net | 2,094,074 | ||
Secured Debt | |||
Maturities of Long-term Debt [Abstract] | |||
2021 (remaining six months) | 95,495 | ||
2022 | 95,324 | ||
2023 | 491,875 | ||
2024 | 0 | ||
2025 | 269,780 | ||
Thereafter | 240,942 | ||
Total principal maturities | 1,193,416 | $ 1,212,950 | |
Debt discounts and deferred financing costs, net | (4,892) | ||
Total debt obligations, net | $ 1,188,524 | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
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, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||
Long-term debt, outstanding balance | $ 3,305,916,000 | |||
Senior Term Loan | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 1.00% | |||
Secured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, outstanding balance | $ 1,193,416,000 | $ 1,212,950,000 | ||
Secured Debt | Senior Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, face amount | $ 650,000,000 | |||
Long-term debt, outstanding balance | $ 491,875,000 | 491,875,000 | ||
Secured Debt | Senior Term Loan | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 2.75% | 2.75% | ||
Secured Debt | Senior Term Loan | LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 1.75% | |||
Secured Debt | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, outstanding balance | $ 0 | $ 0 | ||
Maximum borrowing capacity | $ 350,000,000 | |||
Debt instrument term | 1 year | |||
Current borrowing capacity | $ 340,200,000 | |||
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 | 2.00% | |||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 2.00% | 1.00% | ||
Secured Debt | Revolving Credit Facility | LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 2.50% | |||
Secured Debt | Revolving Credit Facility | Base Rate | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 1.00% | |||
Secured Debt | Revolving Credit Facility | Base Rate | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Basis point spread on variable interest rate | 1.50% |
Debt Obligations, net (Unsecure
Debt Obligations, net (Unsecured Notes Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ 0 | $ 7,924 | $ 0 | $ 12,038 |
Unsecured notes | ||||
Debt Instrument [Line Items] | ||||
Loss on early extinguishment of debt | $ 12,000 |
Debt Obligations, net (Debt Cov
Debt Obligations, net (Debt Covenants) (Details) | Sep. 30, 2021 |
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_2
Commitments and Contingencies (Unfunded Commitments) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Other Commitments [Line Items] | |
Percentage of capital committed that may be drawn down | 100.00% |
Performance-Based Commitments | $ 108,895 |
Strategic Investments | 9,492 |
Total | 118,387 |
Loans | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 7,860 |
Strategic Investments | 0 |
Total | 7,860 |
Real Estate | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 29,716 |
Strategic Investments | 1,900 |
Total | 31,616 |
Other Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 71,319 |
Strategic Investments | 7,592 |
Total | $ 78,911 |
Commitments and Contingencies_3
Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating | |||||
2021 (remaining three months) | $ 1,728 | $ 1,728 | $ 3,797 | ||
2022 | 6,635 | 6,635 | 6,756 | ||
2023 | 6,272 | 6,272 | 6,393 | ||
2024 | 6,188 | 6,188 | 6,309 | ||
2025 | 6,176 | 6,176 | 6,297 | ||
Thereafter | 334 | 334 | 496 | ||
Total undiscounted cash flows | 27,333 | 27,333 | 30,048 | ||
Present value discount | (2,717) | (2,717) | (3,771) | ||
Other adjustments | 22,495 | 22,495 | 23,795 | ||
Lease liabilities | 47,111 | 47,111 | 50,072 | ||
Finance | |||||
2021 (remaining six months) | 1,384 | 1,384 | 5,494 | ||
2022 | 5,604 | 5,604 | 5,604 | ||
2023 | 5,716 | 5,716 | 5,716 | ||
2024 | 5,830 | 5,830 | 5,830 | ||
2025 | 5,946 | 5,946 | 5,946 | ||
Thereafter | 1,567,826 | 1,567,826 | 1,567,826 | ||
Total undiscounted cash flows | 1,592,306 | 1,592,306 | 1,596,416 | ||
Present value discount | (1,439,677) | (1,439,677) | (1,445,896) | ||
Other adjustments | 0 | 0 | 0 | ||
Lease liabilities | $ 152,629 | $ 152,629 | $ 150,520 | ||
Operating leases, weighted average incremental borrowing rate, discount rate (percent) | 5.00% | 5.00% | |||
Operating leases, weighted average lease term (in years) | 7 years 7 months 6 days | 7 years 7 months 6 days | |||
Operating lease payments made | $ 800 | $ 1,000 | $ 2,100 | $ 3,200 | |
Operating leases, excluding tenant paid leases, weighted average lease term | 4 years 10 months 24 days | 5 years 7 months 6 days | |||
Operating leases, weighted average incremental borrowing rate, discount rate | 4.70% | 4.70% | 5.00% | ||
Finance lease payments made | $ 1,300 | 1,400 | $ 4,100 | 4,000 | |
Finance leases, weighted average rate implicit in the lease, discount rate (percent) | 5.50% | 5.50% | 5.50% | ||
Finance leases, weighted average lease term (in years) | 96 years 2 months 12 days | 96 years 2 months 12 days | |||
Finance leases, weighted average lease term | 97 years | ||||
Interest Expense | |||||
Finance | |||||
Finance lease, interest expense | $ 2,100 | 2,000 | $ 6,200 | 6,100 | |
Depreciation and Amortization | |||||
Finance | |||||
Finance lease, amortization | $ 400 | $ 400 | $ 1,100 | $ 1,100 |
Derivatives - Classification on
Derivatives - Classification on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||
Expected amount related to cash flow hedge that will be reclassified over next twelve months | $ 9,100 | |
Derivatives Designated in Hedging Relationships | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 11,723 | $ 18,926 |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 11,723 | $ 18,926 |
Derivatives (Effect in the Cons
Derivatives (Effect in the Consolidated Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 273 | $ 197 | $ 11,483 | $ (30,930) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | [1] | (2,683) | (2,371) | (7,507) | (5,792) |
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 | 278 | (401) | 2,834 | (15,371) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | (2,050) | (2,038) | (6,183) | (4,926) | |
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 | (5) | 598 | 8,649 | (15,559) | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | $ (633) | $ (333) | $ (1,324) | $ (866) | |
[1] | Amounts reclassified to “Interest expense” in the Company’s consolidated statements of operations for the three months ended September 30, 2021 and 2020 are $2,050 and $2,038 , respectively, and amounts reclassified to “Interest expense” in the Company’s consolidated statements of operations for the nine months ended September 30, 2021 and 2020 are $6,183 and $4,926 , respectively. Amounts reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the three months ended September 30, 2021 and 2020 are $633 and $333 , respectively, and amounts reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the nine months ended September 30, 2021 and 2020 are $1,324 and $866 , respectively. |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jun. 30, 2021 | |
Preferred Stock | ||||||
Shares Issued and Outstanding (in shares) | 12,200 | 12,200 | 12,200 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | |||
Carrying Value | $ 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 | |||||
Number of months used in the computation of preferred stock dividends for any partial dividend period | 12 months | |||||
Number of days in month, dividends computation of dividends payable for any partial dividend period | 30 days | |||||
Preferred stock dividends declared and paid | $ 5,874,000 | $ 5,874,000 | $ 17,622,000 | $ 17,622,000 | ||
Capital gains distribution | 100.00% | |||||
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 | |||||
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 | |||||
Series G And I Preferred Stock | ||||||
Preferred Stock | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||
Redemption price as a percentage of liquidation preference | 100.00% | |||||
7.65% Series G Cumulative Redeemable Preferred Stock, $0.001 par value | ||||||
Preferred Stock | ||||||
Shares Issued and Outstanding (in shares) | 3,200 | 3,200 | 3,200 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 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 | |||
Preferred stock dividends declared and paid | $ 4,600,000 | $ 4,600,000 | ||||
7.50% Series I Cumulative Redeemable Preferred Stock, $0.001 par value | ||||||
Preferred Stock | ||||||
Shares Issued and Outstanding (in shares) | 5,000 | 5,000 | 5,000 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 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 | |||
Preferred stock dividends declared and paid | $ 7,000,000 | 7,000,000 | ||||
8.00% Series D Cumulative Redeemable Preferred Stock, $0.001 par value | ||||||
Preferred Stock | ||||||
Shares Issued and Outstanding (in shares) | 4,000 | 4,000 | 4,000 | |||
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock, liquidation preference (in dollars per share) | $ 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 |
Equity (Dividends) (Details)
Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Dividends [Abstract] | |||||
Operating loss carryforwards | $ 529,600 | ||||
Common stock dividends declared | $ 8,954 | $ 8,315 | $ 26,338 | $ 24,598 | |
Common stock dividends declared per share (in dollars per share) | $ 0.36 | $ 0.32 | |||
Capital gains distribution | 100.00% |
Equity (Stock Repurchase Progra
Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Stock repurchase program | ||
Shares repurchased and retired during period (in shares) | 4.2 | 3.7 |
Common stock value repurchased including acquisition costs | $ 91,900,000 | $ 41,400,000 |
Average cost per share of repurchased shares (in dollars per share) | $ 21.70 | $ 11.32 |
Maximum | ||
Stock repurchase program | ||
Stock repurchase program, authorized amount | $ 50,000,000 | |
Stock repurchase program remaining authorized amount | $ 30,900,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ 1,066,225 | [1] | $ 1,008,706 | $ 1,064,383 | [1] | $ 1,093,448 | $ 1,113,785 | $ 1,237,960 |
Unrealized gains on available-for-sale securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | 3,681 | 4,594 | ||||||
Unrealized losses on cash flow hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | (38,031) | (53,075) | ||||||
Unrealized losses on cumulative translation adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | (4,199) | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ (34,350) | $ (35,824) | $ (52,680) | $ (57,111) | $ (59,045) | $ (38,707) | ||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | May 31, 2021 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 3,001 | $ 5,661 | $ 23,300 | $ 26,675 | ||
Long-term Incentive Plan 2009 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares remaining available for issuance (in shares) | 3,100,000 | 3,100,000 | ||||
Long-term Incentive Plan 2009 | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance (in shares) | 9,900,000 | 8,900,000 |
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, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)itemplan$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15.00% | ||||
Equity-based compensation | $ 3,001 | $ 5,661 | $ 23,300 | $ 26,675 | |
Performance Incentive Plan | |||||
Accrued expenses | 112,223 | $ 112,223 | $ 94,724 | ||
iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 6 years | ||||
Vesting rights percentage | 40.00% | ||||
Number of iPIP plans | plan | 5 | ||||
Investment period of iPIP plans | 2 years | ||||
Performance Incentive Plan | |||||
Accrued expenses | 80,900 | $ 80,900 | $ 69,100 | ||
2019-2022 Performance Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of ownership classes of consolidated subsidiary | item | 2 | ||||
Ownership percentage of class A units (as a percent) | 100.00% | ||||
Equity-based compensation | $ 2,600 | 2,500 | |||
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% | ||||
2020-2021 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Aggregate gross book value of investments | $ 163,000 | $ 163,000 | |||
2019-2020 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 95.20 | 95.20 | |||
Granted (in shares) | 0 | ||||
Forfeited (in shares) | (2.20) | ||||
Points at end of period (in shares) | 97.40 | ||||
Aggregate gross book value of investments | $ 1,200,000 | $ 1,200,000 | |||
2021-2022 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 84.75 | 84.75 | |||
Granted (in shares) | 94.75 | ||||
Forfeited (in shares) | (10) | ||||
Points at end of period (in shares) | 0 | ||||
2013-2018 Performance Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation | $ 15,000 | 20,200 | |||
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 | |||
Granted (in shares) | 0 | ||||
Points at end of period (in shares) | 80.17 | ||||
Aggregate gross book value of investments | $ 387,000 | $ 387,000 | |||
2015-2016 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 70.40 | 70.40 | |||
Granted (in shares) | 0 | ||||
Points at end of period (in shares) | 70.40 | ||||
Aggregate gross book value of investments | $ 396,000 | $ 396,000 | |||
iPIP distributions to plan participants | $ 3,200 | $ 1,500 | |||
iPIP distributions, equity component (in shares) | shares | 97,881 | 54,245 | |||
iPIP distributions, equity component, fair value (in dollars per share) | $ / shares | $ 17.65 | $ 14.51 | |||
iPIP distributions, shares issued net of tax withholdings (in shares) | shares | 57,920 | 32,825 | |||
2017-2018 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 75.34 | 75.34 | |||
Granted (in shares) | 2 | ||||
Points at end of period (in shares) | 73.34 | ||||
Aggregate gross book value of investments | $ 480,000 | $ 480,000 | |||
Safehold Inc. | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 36,000,000 | 36,000,000 | |||
Safehold Inc. | Common Stock | 2020-2021 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 1,000,000 | 1,000,000 | |||
Safehold Inc. | Common Stock | 2019-2020 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 26,700,000 | 26,700,000 | |||
Safehold Inc. | Common Stock | 2017-2018 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 7,600,000 | 7,600,000 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans and Employee Benefits (Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands, $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($)shares | |
Number of Shares | |
Non-vested at beginning of period (in shares) | 531 |
Granted (in shares) | 372 |
Vested (in shares) | (112) |
Forfeited (in shares) | (32) |
Non-vested at end of period (in shares) | 759 |
Unrecognized compensation cost | $ | $ 6.8 |
Weighted-average period to recognize the unrecognized compensation cost | 1 year 4 months 6 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, 2021USD ($)$ / sharesshares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 38,186 |
Grant date fair value (in dollars per share) | $ / shares | $ 17.51 |
Common Stock Equivalents | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,592 |
Grant date fair value (in dollars per share) | $ / shares | $ 20.41 |
Non-vested, outstanding (in shares) | 129,452 |
Non-vested, aggregate intrinsic value | $ | $ 3.2 |
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, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Gross contributions made by the Company | $ 0.1 | $ 0.2 | $ 0.8 | $ 1 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 130,994 | $ 6,451 | $ 127,567 | $ (20,793) |
Net income attributable to noncontrolling interests | (3,264) | (2,646) | (8,037) | (8,435) |
Preferred dividends | (5,874) | (5,874) | (17,622) | (17,622) |
Net income (loss) allocable to common shareholders - Basic | 121,856 | (2,069) | 101,908 | (46,850) |
Net loss allocable to common shareholders - Diluted | $ 121,856 | $ (2,069) | $ 101,908 | $ (46,850) |
Earnings Per Share (Earnings Al
Earnings Per Share (Earnings Allocable to Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator for basic earnings per share: | ||||
Net income (loss) allocable to common shareholders | $ 121,856 | $ (2,069) | $ 101,908 | $ (46,850) |
Numerator for diluted earnings per share: | ||||
Net income (loss) allocable to common shareholders - Diluted | $ 121,856 | $ (2,069) | $ 101,908 | $ (46,850) |
Denominator for basic and diluted earnings per share: | ||||
Weighted average common shares outstanding for basic earnings per common share | 71,299,000 | 75,033,000 | 72,675,000 | 76,232,000 |
Add: Effect of assumed shares issued under treasury stock method for restricted stock units | 221,000 | 206,000 | ||
Add: Effect of convertible debt | 8,967,000 | 5,521,000 | ||
Weighted average common shares outstanding for diluted earnings per common share | 80,487,000 | 75,033,000 | 78,402,000 | 76,232,000 |
Basic and diluted earnings per common share: | ||||
Net income (loss) allocable to common shareholders - Basic (in dollars per share) | $ 1.71 | $ (0.03) | $ 1.40 | $ (0.61) |
Diluted earnings per common share: | ||||
Net income (loss) allocable to common shareholders - Diluted (in dollars per share) | $ 1.51 | $ (0.03) | $ 1.30 | $ (0.61) |
3.125% Senior Convertible Notes | ||||
Diluted earnings per common share: | ||||
Antidilutive (in shares) | 0 | 0 | ||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
Fair Values (Schedule of Fair V
Fair Values (Schedule of Fair Value Measurement) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Assets and liabilities recorded at fair value | ||||
Derivative liabilities | $ 11,700 | $ 19,000 | ||
Loan receivable held for sale | 42,683 | |||
Other investments | [1] | 1,419,766 | 1,176,560 | |
Impairment of real estate - Held for sale | 400 | $ 3,000 | ||
Impairment of real estate | 1,300 | |||
Recurring Basis | ||||
Assets and liabilities recorded at fair value | ||||
Derivative liabilities | 11,723 | 18,926 | ||
Available-for-sale securities | 27,535 | 25,274 | ||
Recurring Basis | Fair Value, Inputs, Level 2 | ||||
Assets and liabilities recorded at fair value | ||||
Derivative liabilities | 11,723 | 18,926 | ||
Recurring Basis | Fair Value, Inputs, Level 3 | ||||
Assets and liabilities recorded at fair value | ||||
Available-for-sale securities | 27,535 | 25,274 | ||
Non-recurring Basis | ||||
Assets and liabilities recorded at fair value | ||||
impaired real estate available and held for sale | 1,682 | |||
Other investments | 98,461 | |||
Impaired land and development | 6,078 | |||
Non-recurring Basis | Fair Value, Inputs, Level 2 | ||||
Assets and liabilities recorded at fair value | ||||
Other investments | 98,461 | |||
Non-recurring Basis | Fair Value, Inputs, Level 3 | ||||
Assets and liabilities recorded at fair value | ||||
impaired real estate available and held for sale | $ 1,682 | |||
Impaired land and development | $ 6,078 | |||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Fair Values (Summary of Changes
Fair Values (Summary of Changes in Level 3 Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 25,274 | $ 23,896 |
Purchases | 3,375 | |
Repayments | (201) | (460) |
Unrealized gains (losses) recorded in other comprehensive income | (913) | 1,195 |
Ending balance | $ 27,535 | $ 24,631 |
Fair Values - (Carrying Value a
Fair Values - (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Carrying Value | ||||
Book and estimated fair values of financial instruments | ||||
Net investment in leases | $ 477 | $ 429 | ||
Loans receivable and other lending investments | 406 | 732 | ||
Cash and cash equivalents | 299 | 99 | ||
Restricted cash | 56 | 52 | ||
Loan participations payable, net | 0 | 43 | ||
Debt obligations, net | 3,283 | 3,287 | ||
Fair Value | ||||
Book and estimated fair values of financial instruments | ||||
Net investment in leases | 497 | 431 | ||
Loans receivable and other lending investments | 436 | 772 | ||
Cash and cash equivalents | 299 | 99 | ||
Restricted cash | 56 | 52 | ||
Loan participations payable, net | 0 | 43 | ||
Debt obligations, net | $ 3,643 | 3,414 | ||
3.125% Senior Convertible Notes | ||||
Book and estimated fair values of financial instruments | ||||
Stated interest rate | 3.125% | 3.125% | ||
3.125% Senior Convertible Notes | Unsecured notes | ||||
Book and estimated fair values of financial instruments | ||||
Debt obligations, net | $ 527,200 | $ 338,800 | ||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segments) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | May 31, 2019USD ($) | |||||
Segment Profit (Loss) | ||||||||||
Number of reportable segments | segment | 4 | |||||||||
Revenues | $ 195,485 | $ 115,054 | $ 414,335 | $ 384,930 | ||||||
Earnings (losses) from equity method investments | 89,209 | 6,805 | 114,675 | 26,003 | ||||||
Income from sales of real estate | 25,611 | 6,055 | 28,433 | 6,118 | ||||||
Total revenue and other earnings | 310,305 | 127,914 | 557,443 | 417,051 | ||||||
Other expense | (2,011) | (73) | (2,475) | (351) | ||||||
Allocated interest expense | (39,471) | (42,407) | (118,451) | (127,748) | ||||||
Allocated general and administrative | (14,120) | (14,207) | (45,654) | (46,463) | ||||||
Segment profit (loss) | 148,599 | 32,934 | 189,449 | 74,077 | ||||||
Other significant items: | ||||||||||
(Recovery of) provision for loan losses | (1,556) | (1,976) | (7,613) | 4,093 | ||||||
(Recovery of) provision for losses on net investment in leases | 131 | 175 | (1,735) | 2,001 | ||||||
Impairment of assets | 1,179 | 0 | 2,965 | 6,491 | ||||||
Depreciation and amortization | 14,856 | 14,621 | 44,971 | 43,407 | ||||||
Capitalized expenditures | 8,506 | 7,150 | 19,637 | 35,556 | ||||||
Segment assets | ||||||||||
Real estate, net | [1] | 1,356,924 | 1,356,924 | $ 1,484,281 | ||||||
Real estate available and held for sale | [1] | 1,983 | 1,983 | 5,212 | ||||||
Total real estate | [1] | 1,358,907 | 1,358,907 | 1,489,493 | ||||||
Net investment in leases | 477,360 | [1] | 477,360 | [1] | 429,101 | [1] | $ 424,100 | |||
Land and development, net | [1] | 302,845 | 302,845 | 430,663 | ||||||
Loans receivable and other lending investments, net | 405,509 | 405,509 | 732,330 | |||||||
Loan receivable held for sale | 42,683 | 42,683 | ||||||||
Other investments | [1] | 1,419,766 | 1,419,766 | 1,176,560 | ||||||
Total portfolio assets | 4,007,070 | 4,007,070 | 4,258,147 | |||||||
Cash and other assets | 795,095 | 795,095 | 603,661 | |||||||
Total assets | [1] | 4,802,165 | 4,802,165 | 4,861,808 | ||||||
Stock-based compensation expense | 3,001 | 5,661 | 23,300 | 26,675 | ||||||
Operating lease income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 44,392 | 46,370 | 137,381 | 140,529 | ||||||
Interest income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 7,951 | 14,270 | 27,574 | 46,925 | ||||||
Interest income from sales-type leases | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 9,578 | 8,360 | 26,895 | 25,010 | ||||||
Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 40,195 | 25,552 | 64,549 | 56,212 | ||||||
Land development revenue | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 93,369 | 20,502 | 157,936 | 116,254 | ||||||
Cost of sales expense | (87,380) | (21,358) | (147,507) | (114,704) | ||||||
Real estate expense | ||||||||||
Segment Profit (Loss) | ||||||||||
Cost of sales expense | (18,724) | (16,935) | (53,907) | (53,708) | ||||||
Operating Segments | Net Lease | ||||||||||
Segment Profit (Loss) | ||||||||||
Earnings (losses) from equity method investments | 74,889 | 10,141 | 98,604 | 38,472 | ||||||
Income from sales of real estate | 6,055 | 2,114 | 6,056 | |||||||
Total revenue and other earnings | 131,523 | 71,165 | 269,448 | 209,709 | ||||||
Other expense | (1,327) | (1,327) | ||||||||
Allocated interest expense | (26,467) | (26,049) | (76,888) | (74,915) | ||||||
Allocated general and administrative | (5,487) | (5,161) | (17,544) | (17,327) | ||||||
Segment profit (loss) | 92,796 | 32,819 | 152,624 | 97,970 | ||||||
Other significant items: | ||||||||||
(Recovery of) provision for loan losses | 54 | 19 | (202) | 212 | ||||||
(Recovery of) provision for losses on net investment in leases | 131 | 175 | (1,735) | 2,001 | ||||||
Impairment of assets | 757 | 2,286 | 2,036 | |||||||
Depreciation and amortization | 13,114 | 12,781 | 39,255 | 37,924 | ||||||
Capitalized expenditures | 969 | 1,896 | 2,300 | 8,913 | ||||||
Segment assets | ||||||||||
Real estate, net | 1,263,881 | 1,263,881 | 1,291,903 | |||||||
Total real estate | 1,263,881 | 1,263,881 | 1,291,903 | |||||||
Net investment in leases | 477,360 | 477,360 | 429,101 | |||||||
Loans receivable and other lending investments, net | 47,555 | 47,555 | 45,398 | |||||||
Loan receivable held for sale | 42,683 | 42,683 | ||||||||
Other investments | 1,213,804 | 1,213,804 | 1,016,710 | |||||||
Total portfolio assets | 3,045,283 | 3,045,283 | 2,783,112 | |||||||
Operating Segments | Net Lease | Operating lease income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 40,659 | 41,144 | 123,926 | 124,109 | ||||||
Operating Segments | Net Lease | Interest income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 1,630 | 911 | 3,696 | 2,594 | ||||||
Operating Segments | Net Lease | Interest income from sales-type leases | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 9,578 | 8,360 | 26,895 | 25,010 | ||||||
Operating Segments | Net Lease | Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 4,767 | 4,554 | 14,213 | 13,468 | ||||||
Operating Segments | Net Lease | Real estate expense | ||||||||||
Segment Profit (Loss) | ||||||||||
Cost of sales expense | (5,446) | (7,136) | (21,065) | (19,497) | ||||||
Operating Segments | Real Estate Finance | ||||||||||
Segment Profit (Loss) | ||||||||||
Earnings (losses) from equity method investments | 872 | 2,092 | ||||||||
Total revenue and other earnings | 8,288 | 13,463 | 27,215 | 48,580 | ||||||
Other expense | (270) | (37) | (422) | (80) | ||||||
Allocated interest expense | (3,331) | (5,831) | (11,737) | (17,989) | ||||||
Allocated general and administrative | (958) | (1,451) | (3,659) | (5,123) | ||||||
Segment profit (loss) | 3,729 | 6,144 | 11,397 | 25,388 | ||||||
Other significant items: | ||||||||||
(Recovery of) provision for loan losses | (1,610) | (1,995) | (7,411) | 3,881 | ||||||
Segment assets | ||||||||||
Loans receivable and other lending investments, net | 357,954 | 357,954 | 686,932 | |||||||
Other investments | 47,936 | 47,936 | ||||||||
Total portfolio assets | 405,890 | 405,890 | 686,932 | |||||||
Operating Segments | Real Estate Finance | Interest income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 6,321 | 13,359 | 23,878 | 44,331 | ||||||
Operating Segments | Real Estate Finance | Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 1,095 | 104 | 1,245 | 4,249 | ||||||
Operating Segments | Operating Properties | ||||||||||
Segment Profit (Loss) | ||||||||||
Earnings (losses) from equity method investments | 1,129 | (4,134) | (5,553) | (11,741) | ||||||
Income from sales of real estate | 25,611 | 26,319 | 62 | |||||||
Total revenue and other earnings | 47,246 | 3,959 | 57,101 | 11,079 | ||||||
Allocated interest expense | (1,641) | (2,289) | (5,714) | (6,731) | ||||||
Allocated general and administrative | (473) | (582) | (1,797) | (1,966) | ||||||
Segment profit (loss) | 35,948 | (3,340) | 30,352 | (14,218) | ||||||
Other significant items: | ||||||||||
Impairment of assets | 422 | 679 | 2,983 | |||||||
Depreciation and amortization | 1,385 | 1,287 | 4,593 | 3,843 | ||||||
Capitalized expenditures | 121 | 84 | 610 | 1,421 | ||||||
Segment assets | ||||||||||
Real estate, net | 93,043 | 93,043 | 192,378 | |||||||
Real estate available and held for sale | 1,983 | 1,983 | 5,212 | |||||||
Total real estate | 95,026 | 95,026 | 197,590 | |||||||
Other investments | 43,659 | 43,659 | 58,739 | |||||||
Total portfolio assets | 138,685 | 138,685 | 256,329 | |||||||
Operating Segments | Operating Properties | Operating lease income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 3,637 | 5,137 | 13,176 | 16,153 | ||||||
Operating Segments | Operating Properties | Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 16,869 | 2,956 | 23,159 | 6,605 | ||||||
Operating Segments | Operating Properties | Real estate expense | ||||||||||
Segment Profit (Loss) | ||||||||||
Cost of sales expense | (9,184) | (4,428) | (19,238) | (16,600) | ||||||
Operating Segments | Land and Development | ||||||||||
Segment Profit (Loss) | ||||||||||
Earnings (losses) from equity method investments | 10,836 | 592 | 15,456 | 1,225 | ||||||
Total revenue and other earnings | 107,490 | 25,014 | 179,565 | 123,304 | ||||||
Other expense | (64) | (64) | ||||||||
Allocated interest expense | (3,679) | (4,606) | (11,481) | (13,598) | ||||||
Allocated general and administrative | (2,173) | (2,320) | (6,968) | (7,524) | ||||||
Segment profit (loss) | 10,100 | (8,641) | (59) | (30,133) | ||||||
Other significant items: | ||||||||||
Impairment of assets | 1,472 | |||||||||
Depreciation and amortization | 228 | 243 | 674 | 729 | ||||||
Capitalized expenditures | 7,416 | 5,170 | 16,727 | 25,222 | ||||||
Segment assets | ||||||||||
Land and development, net | 302,845 | 302,845 | 430,663 | |||||||
Other investments | 537 | 537 | 31,200 | |||||||
Total portfolio assets | 303,382 | 303,382 | 461,863 | |||||||
Operating Segments | Land and Development | Operating lease income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 96 | 89 | 279 | 267 | ||||||
Operating Segments | Land and Development | Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 3,189 | 3,831 | 5,894 | 5,558 | ||||||
Operating Segments | Land and Development | Land development revenue | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | 93,369 | 20,502 | 157,936 | 116,254 | ||||||
Cost of sales expense | (87,380) | (21,358) | (147,507) | (114,704) | ||||||
Operating Segments | Land and Development | Real estate expense | ||||||||||
Segment Profit (Loss) | ||||||||||
Cost of sales expense | (4,094) | (5,371) | (13,604) | (17,611) | ||||||
Corporate/Other | ||||||||||
Segment Profit (Loss) | ||||||||||
Earnings (losses) from equity method investments | 1,483 | 206 | 4,076 | (1,953) | ||||||
Total revenue and other earnings | 15,758 | 14,313 | 24,114 | 24,379 | ||||||
Other expense | (350) | (36) | (662) | (271) | ||||||
Allocated interest expense | (4,353) | (3,632) | (12,631) | (14,515) | ||||||
Allocated general and administrative | (5,029) | (4,693) | (15,686) | (14,523) | ||||||
Segment profit (loss) | 6,026 | 5,952 | (4,865) | (4,930) | ||||||
Other significant items: | ||||||||||
Depreciation and amortization | 129 | 310 | 449 | 911 | ||||||
Segment assets | ||||||||||
Other investments | 113,830 | 113,830 | 69,911 | |||||||
Total portfolio assets | 113,830 | 113,830 | $ 69,911 | |||||||
Corporate/Other | Other income | ||||||||||
Segment Profit (Loss) | ||||||||||
Revenues | $ 14,275 | $ 14,107 | $ 20,038 | $ 26,332 | ||||||
[1] | Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation of Segment Profit to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Segment profit | $ 148,599 | $ 32,934 | $ 189,449 | $ 74,077 |
Less: Recovery of (provision for) loan losses | 1,556 | 1,976 | 7,613 | (4,093) |
Less: Recovery of (provision for) losses on net investment in leases | (131) | (175) | 1,735 | (2,001) |
Less: Impairment of assets | (1,179) | 0 | (2,965) | (6,491) |
Less: Stock-based compensation expense | (3,001) | (5,661) | (23,300) | (26,675) |
Less: Depreciation and amortization | (14,856) | (14,621) | (44,971) | (43,407) |
Less: Income tax expense | 6 | (78) | 6 | (165) |
Less: Loss on early extinguishment of debt, net | 0 | (7,924) | 0 | (12,038) |
Net income (loss) | $ 130,994 | $ 6,451 | $ 127,567 | $ (20,793) |
Subsequent Events (Detail)
Subsequent Events (Detail) | 1 Months Ended | |
Nov. 02, 2021 | Sep. 30, 2021 | |
4.75% Senior Notes | ||
Subsequent events | ||
Stated interest rate | 4.75% | |
4.25% Senior Notes | ||
Subsequent events | ||
Stated interest rate | 4.25% | |
5.50% Senior Notes | ||
Subsequent events | ||
Stated interest rate | 5.50% | |
Subsequent Event | Minimum | ||
Subsequent events | ||
Percentage of principal amount of consenting notes paid as consent fees to note holders | 0.75% | |
Subsequent Event | Maximum | ||
Subsequent events | ||
Percentage of principal amount of consenting notes paid as consent fees to note holders | 1.00% |