Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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) | 85,377,094 | |
Entity Central Index Key | 0001095651 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Real estate | |||
Real estate, at cost | [1] | $ 111,909 | $ 113,510 |
Less: accumulated depreciation | [1] | (21,678) | (21,360) |
Real estate, net | [1] | 90,231 | 92,150 |
Real estate available and held for sale | [1] | 1,970 | 301 |
Total real estate | [1] | 92,201 | 92,451 |
Real estate and other assets available and held for sale and classified as discontinued operations | 11,518 | 2,299,711 | |
Net investment in leases ($380 and $0 of allowances as of June 30, 2022 and December 31, 2021, respectively) | 31,999 | 43,215 | |
Land and development, net | [1] | 259,718 | 286,810 |
Loans receivable and other lending investments, net ($3,033 and $4,769 of allowances as of June 30, 2022 and December 31, 2021, respectively) | [1] | 204,252 | 332,844 |
Loan receivable held for sale | 43,215 | ||
Other investments | [1] | 1,556,792 | 1,297,281 |
Cash and cash equivalents | [1] | 1,400,658 | 339,601 |
Accrued interest and operating lease income receivable, net | [1] | 1,601 | 1,813 |
Deferred operating lease income receivable, net | [1] | 2,941 | 3,159 |
Deferred expenses and other assets, net | [1] | 48,940 | 100,434 |
Total assets | [1] | 3,610,620 | 4,840,534 |
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities | [1] | 140,791 | 236,732 |
Liabilities associated with real estate held for sale and classified as discontinued operations | 5,715 | 968,419 | |
Liabilities associated with properties held for sale | [1] | 3 | |
Debt obligations, net | [1] | 1,833,250 | 2,572,174 |
Total liabilities | [1] | 1,979,756 | 3,777,328 |
Commitments and contingencies (refer to Note 11) | [1] | ||
iStar Inc. shareholders' equity: | |||
Preferred Stock Series D, G and I, liquidation preference $25.00 per share | [1] | 12 | 12 |
Common Stock, $0.001 par value, 200,000 shares authorized, 83,303 and 68,870 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | [1] | 84 | 69 |
Additional paid-in capital | [1] | 3,406,422 | 3,100,015 |
Accumulated deficit | [1] | (1,774,069) | (2,227,213) |
Accumulated other comprehensive loss | [1] | (17,872) | (21,587) |
Total iStar Inc. shareholders' equity | [1] | 1,614,577 | 851,296 |
Noncontrolling interests | [1] | 16,287 | 211,910 |
Total equity | [1] | 1,630,864 | 1,063,206 |
Total liabilities and equity | [1] | $ 3,610,620 | $ 4,840,534 |
[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 | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Net investment in leases, allowances | $ 380 | $ 0 |
Loans receivable and other lending investments, allowances | $ 3,033 | $ 4,769 |
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) | 83,303 | 68,870 |
Common Stock, shares outstanding (in shares) | 83,303 | 68,870 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 48,063 | $ 54,254 | $ 80,016 | $ 114,238 |
Costs and expenses: | ||||
Interest expense | 24,149 | 28,641 | 53,392 | 57,450 |
Depreciation and amortization | 1,338 | 1,573 | 2,695 | 3,974 |
General and administrative | (5,179) | (3,804) | ||
General and administrative | 30,394 | 51,833 | ||
Provision for (recovery of) loan losses | 22,578 | (2,158) | 22,713 | (5,800) |
Provision for losses on net investment in leases | 99 | 779 | 380 | 780 |
Impairment of assets | 1,768 | 0 | 1,768 | 257 |
Other expense | 1,523 | 211 | 2,453 | 463 |
Total costs and expenses | 83,387 | 101,560 | 141,321 | 189,118 |
Income from sales of real estate | 96 | 492 | 708 | |
Loss from operations before earnings from equity method investments and other items | (35,324) | (47,210) | (60,813) | (74,172) |
Loss on early extinguishment of debt, net | (116,563) | 0 | (117,991) | 0 |
Earnings from equity method investments | 19,393 | 11,098 | 44,425 | 22,866 |
Net loss from continuing operations before income taxes | (132,494) | (36,112) | (134,379) | (51,306) |
Income tax (expense) benefit | 0 | (619) | (3) | 79 |
Net loss from continuing operations | (132,494) | (36,731) | (134,382) | (51,227) |
Net income from discontinued operations | 25,315 | 797,688 | 47,800 | |
Net income (loss) | (132,494) | (11,416) | 663,306 | (3,427) |
Net (income) loss from continuing operations attributable to noncontrolling interests | (117) | 20 | (99) | 65 |
Net (income) from discontinued operations attributable to noncontrolling interests | (2,273) | (179,089) | (4,838) | |
Net income (loss) attributable to iStar Inc. | (132,611) | (13,669) | 484,118 | (8,200) |
Preferred dividends | (5,874) | (5,874) | (11,748) | (11,748) |
Net income (loss) allocable to common shareholders - Basic | $ (138,485) | $ (19,543) | $ 472,370 | $ (19,948) |
Per common share data: | ||||
Net income (loss) allocable to common shareholders - Basic | $ (1.70) | $ (0.27) | $ 6.28 | $ (0.27) |
Net income (loss) allocable to common shareholders - Diluted | (1.70) | (0.27) | 6.28 | (0.27) |
Net loss from continuing operations and allocable to common shareholders: | ||||
Basic (in dollars per share) | (1.70) | (0.59) | (1.94) | (0.86) |
Diluted (in dollars per share) | $ (1.70) | (0.59) | (1.94) | (0.86) |
Net income from discontinued operations and allocable to common shareholders | ||||
Basic (in dollars per share) | 0.32 | 8.22 | 0.59 | |
Diluted (in dollars per share) | $ 0.32 | $ 8.22 | $ 0.59 | |
Weighted average number of common shares: | ||||
Basic (in shares) | 81,442 | 72,872 | 75,274 | 73,374 |
Diluted (in shares) | 81,442 | 72,872 | 75,274 | 73,374 |
Operating lease income | ||||
Revenues: | ||||
Total revenues | $ 3,182 | $ 4,792 | $ 6,291 | $ 9,723 |
Interest income | ||||
Revenues: | ||||
Total revenues | 4,221 | 8,084 | 9,169 | 17,874 |
Interest income from sales-type leases | ||||
Revenues: | ||||
Total revenues | 376 | 157 | 732 | 157 |
Other income | ||||
Revenues: | ||||
Total revenues | 15,881 | 8,903 | 24,521 | 21,917 |
Land development revenue | ||||
Revenues: | ||||
Total revenues | 24,403 | 32,318 | 39,303 | 64,567 |
Costs and expenses: | ||||
Cost of sales expense | 24,095 | 30,803 | 38,591 | 60,126 |
Real estate expense | ||||
Costs and expenses: | ||||
Cost of sales expense | $ 13,016 | $ 11,317 | $ 23,133 | $ 20,035 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (132,494) | $ (11,416) | $ 663,306 | $ (3,427) | |
Other comprehensive income (loss): | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | [1] | 580 | 2,486 | 1,201 | 4,824 |
Unrealized (losses) gains on available-for-sale securities | (1,610) | 657 | (4,623) | (374) | |
Unrealized gains (losses) on cash flow hedges | 4,382 | (764) | 7,137 | 11,211 | |
Other comprehensive income | 3,352 | 2,379 | 3,715 | 15,661 | |
Comprehensive income (loss) | (129,142) | (9,037) | 667,021 | 12,234 | |
Comprehensive (income) loss attributable to noncontrolling interests | (117) | (2,765) | (179,188) | (7,744) | |
Comprehensive income (loss) attributable to iStar Inc. | $ (129,259) | $ (11,802) | $ 487,833 | $ 4,490 | |
[1] Reclassified to “Net income from discontinued operations” in the Company’s consolidated statements of operations for the three and six months ended June 30, 2021 is $2,029 and $4,133 , respectively. Reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the three months ended June 30, 2022 and 2021 are $580 and $457 respectively. Reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the six months ended June 30, 2022 and 2021 are $1,201 and $691 , respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income from discontinued operations | $ 25,315 | $ 797,688 | $ 47,800 | |
Earnings from equity method investments | $ 19,393 | 11,098 | 44,425 | 22,866 |
Other expenses | 1,523 | 211 | 2,453 | 463 |
Comprehensive income attributable to noncontrolling interests from discontinued operations | 2,800 | 179,100 | 7,800 | |
Reclassification out of Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge | ||||
Net income from discontinued operations | 2,029 | 4,133 | ||
Earnings from equity method investments | $ 580 | $ 457 | $ 1,201 | $ 691 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-In Capital Period 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, 2020 | $ 12 | $ 74 | $ (25,869) | $ 3,240,535 | $ 15,850 | $ (2,316,972) | $ (52,680) | $ 193,414 | $ (10,019) | $ 1,064,383 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (11,748) | (11,748) | |||||||||
Dividends declared-common | (17,384) | (17,384) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 3,771 | 1,538 | 5,309 | ||||||||
Net income (loss) | (8,200) | 4,773 | (3,427) | ||||||||
Change in accumulated other comprehensive income (loss) | 16,856 | 2,970 | 19,826 | ||||||||
Repurchase of stock | (2) | (32,354) | (32,356) | ||||||||
Contributions from noncontrolling interests | 857 | 857 | |||||||||
Distributions to noncontrolling interests | (335) | (6,400) | (6,735) | ||||||||
Ending Balance at Jun. 30, 2021 | 12 | 72 | 3,185,748 | (2,338,454) | (35,824) | 197,152 | 1,008,706 | ||||
Beginning Balance at Mar. 31, 2021 | 12 | 73 | 3,204,862 | (2,309,763) | (41,858) | 197,681 | 1,051,007 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (5,874) | (5,874) | |||||||||
Dividends declared-common | (9,148) | (9,148) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 1,199 | 168 | 1,367 | ||||||||
Net income (loss) | (13,669) | 2,253 | (11,416) | ||||||||
Change in accumulated other comprehensive income (loss) | 6,034 | 512 | 6,546 | ||||||||
Repurchase of stock | (1) | (19,978) | (19,979) | ||||||||
Contributions from noncontrolling interests | 794 | 794 | |||||||||
Distributions to noncontrolling interests | (335) | (4,256) | (4,591) | ||||||||
Ending Balance at Jun. 30, 2021 | 12 | 72 | 3,185,748 | (2,338,454) | (35,824) | 197,152 | 1,008,706 | ||||
Beginning Balance at Dec. 31, 2021 | 12 | 69 | 3,100,015 | (2,227,213) | (21,587) | 211,910 | 1,063,206 | [1] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (11,748) | (11,748) | |||||||||
Dividends declared-common | (19,226) | (19,226) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 1 | 8,886 | 2,427 | 11,314 | |||||||
Issuance of common stock in connection with 3.125% convertible notes | 14 | 297,521 | 297,535 | ||||||||
Net income (loss) | 484,118 | 179,188 | 663,306 | ||||||||
Change in accumulated other comprehensive income (loss) | 3,715 | 3,715 | |||||||||
Contributions from noncontrolling interests | 7,893 | 7,893 | |||||||||
Distributions to noncontrolling interests | (385,131) | (385,131) | |||||||||
Ending Balance at Jun. 30, 2022 | 12 | 84 | 3,406,422 | (1,774,069) | (17,872) | 16,287 | 1,630,864 | [1] | |||
Beginning Balance at Mar. 31, 2022 | 12 | 69 | 3,100,665 | (1,625,086) | (21,224) | 330,514 | 1,784,950 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared-preferred | (5,874) | (5,874) | |||||||||
Dividends declared-common | (10,498) | (10,498) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 1 | 8,236 | 1,077 | 9,314 | |||||||
Issuance of common stock in connection with 3.125% convertible notes | 14 | 297,521 | 297,535 | ||||||||
Net income (loss) | (132,611) | 117 | (132,494) | ||||||||
Change in accumulated other comprehensive income (loss) | 3,352 | 3,352 | |||||||||
Distributions to noncontrolling interests | (315,421) | (315,421) | |||||||||
Ending Balance at Jun. 30, 2022 | $ 12 | $ 84 | $ 3,406,422 | $ (1,774,069) | $ (17,872) | $ 16,287 | $ 1,630,864 | [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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Dividends declared | ||||
Dividends declared - common (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.25 | $ 0.235 |
3.125% Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
Unsecured notes | 3.125% Senior Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 663,306 | $ (3,427) |
Adjustments to reconcile net income (loss) to cash flows from operating activities: | ||
Provision for (recovery of) loan losses | 22,713 | (6,057) |
Provision for losses on net investment in leases | 380 | (1,866) |
Impairment of assets | 3,260 | 1,785 |
Depreciation and amortization | 2,695 | 30,115 |
Non-cash interest income from sales-type leases | (1,706) | (18,808) |
Stock-based compensation (income) expense | (30,350) | 20,299 |
Amortization of discounts/premiums and deferred financing costs on debt obligations, net | 5,278 | 3,957 |
Amortization of discounts/premiums and deferred interest on loans, net | (5,398) | (7,459) |
Deferred interest on loans received | 4,738 | 23,703 |
Earnings from equity method investments | (171,305) | (25,466) |
Distributions from operations of other investments | 130,245 | 18,193 |
Deferred operating lease income | (2,267) | (5,211) |
Income from sales of real estate | (684,229) | (2,822) |
Land development revenue in excess of cost of sales | (712) | (4,441) |
Loss on early extinguishment of debt, net | 159,399 | 0 |
Other operating activities, net | (9,958) | (2,148) |
Changes in assets and liabilities: | ||
Originations and fundings of loans receivable held for sale | 0 | (62,525) |
Changes in accrued interest and operating lease income receivable | 1,937 | 3,572 |
Changes in deferred expenses and other assets, net | (8,921) | (1,637) |
Changes in accounts payable, accrued expenses and other liabilities | (51,724) | (4,719) |
Cash flows provided by (used in) operating activities | 27,381 | (44,962) |
Cash flows from investing activities: | ||
Originations and fundings of loans receivable, net | (4,762) | (65,208) |
Capital expenditures on real estate assets | (858) | (4,287) |
Capital expenditures on land and development assets | (10,165) | (8,382) |
Acquisition of real estate, net investments in leases and land assets | (34,115) | (42,000) |
Repayments of and principal collections on loans receivable and other lending investments, net | 57,273 | 209,779 |
Net proceeds from sales of loans receivable | 145,583 | 79,560 |
Net proceeds from sales of real estate | 1,981,599 | 3,259 |
Net proceeds from sales of net investment in leases | 572,251 | 12,825 |
Net proceeds from sales of land and development assets | 38,004 | 61,945 |
Distributions from other investments | 153,629 | 22,996 |
Contributions to and acquisition of interest in other investments | (273,179) | (91,419) |
Other investing activities, net | (138) | 4,910 |
Cash flows provided by investing activities | 2,625,122 | 183,978 |
Cash flows from financing activities: | ||
Borrowings from debt obligations | 50,000 | 25,000 |
Repayments and repurchases of debt obligations | (1,037,079) | (35,900) |
Purchase of marketable securities in connection with the defeasance of mortgage notes payable | (252,571) | 0 |
Preferred dividends paid | (11,748) | (11,748) |
Common dividends paid | (19,385) | (17,304) |
Repurchase of stock | 0 | (32,556) |
Payments for debt prepayment or extinguishment costs | (16,289) | 0 |
Payments for deferred financing costs | 0 | (75) |
Payments for withholding taxes upon vesting of stock-based compensation | (10,428) | (2,181) |
Contributions from noncontrolling interests | 7,893 | 64 |
Distributions to noncontrolling interests | (351,005) | (6,401) |
Cash flows used in financing activities | (1,640,612) | (81,101) |
Effect of exchange rate changes on cash | (50) | (111) |
Changes in cash, cash equivalents and restricted cash | 1,011,841 | 57,804 |
Cash, cash equivalents and restricted cash at beginning of period | 393,996 | 150,566 |
Cash, cash equivalents and restricted cash at end of period | $ 1,405,837 | $ 208,370 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Reconciliation of cash and cash equivalents and restricted cash presented on the consolidated statements of cash flows | |||
Cash and cash equivalents | $ 1,400,658 | [1] | $ 154,941 |
Restricted cash included in deferred expenses and other assets, net | 5,179 | 53,429 | |
Total cash and cash equivalents and restricted cash | 1,405,837 | 208,370 | |
Supplemental disclosure of non-cash investing and financing activity: | |||
Fundings and (repayments) of loan receivables and loan participations, net | (42,501) | ||
Accounts payable for capital expenditures on real estate assets | 2,839 | $ 930 | |
Marketable securities transferred in connection with the defeasance of mortgage notes payable | 252,571 | ||
Defeasance of mortgage notes payable | 230,452 | ||
Distributions to noncontrolling interests | 34,467 | ||
Assumption of mortgage by third party | $ 62,825 | ||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
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 | 6 Months Ended |
Jun. 30, 2022 | |
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 (refer to Note 3 – Net Lease Sale and Discontinued Operations) to conform to the current period presentation. Principles of Consolidation Consolidated VIEs 2021. The following table presents the assets and liabilities of the Company’s consolidated VIEs as of June 30, 2022 and December 31, 2021 ($ in thousands): As of June 30, 2022 December 31, 2021 ASSETS Real estate Real estate, at cost $ 93,835 $ 93,477 Less: accumulated depreciation (16,518) (14,987) Real estate, net 77,317 78,490 Real estate and other assets available and held for sale and classified as discontinued operations 198 886,845 Land and development, net 153,044 176,833 Cash and cash equivalents 21,318 23,908 Deferred operating lease income receivable, net 7 3 Deferred expenses and other assets, net 5,061 5,001 Total assets $ 256,945 $ 1,171,081 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 26,151 $ 24,744 Liabilities associated with real estate held for sale and classified as discontinued operations 291 493,739 Total liabilities 26,442 518,483 Unconsolidated VIEs |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3—Summary of Significant Accounting Policies Net Lease Sale and Discontinued Operations — Net Lease Sale — The portfolio sold consisted of office, entertainment and industrial properties located in the United States comprising approximately 18.3 million square feet. It included assets wholly-owned by the Company and assets owned by two joint ventures (see Net Lease Venture and Net Lease Venture II below) managed by the Company and in which it owned 51.9% interests Inc. (“SAFE”) for $122.0 million and entered into three Ground Leases with SAFE. Two net lease properties were sold to different third parties in the first quarter of 2022 and the Company’s net lease assets associated with its Ground Lease businesses were not included in the sale. The Company received net cash proceeds of $33.9 million from the sale of the two net lease properties and recognized a gain of $23.9 million in “Net income from discontinued operations” in the Company’s consolidated statements of operations. Net Lease Venture Net Lease Venture II Discontinued Operations — The following table presents the Company’s consolidated assets and liabilities recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands). As of June 30, December 31, 2022 2021 ASSETS Real estate Real estate, at cost $ — $ 1,537,655 Less: accumulated depreciation — (271,183) Total real estate, net — 1,266,472 Net investment in leases — 486,389 Loans receivable held for sale — 48,675 Other investments 1,972 103,229 Finance lease right of use assets — 150,099 Accrued interest and operating lease income receivable, net 548 2,997 Deferred operating lease income receivable, net — 63,156 Deferred expenses and other assets, net 8,998 178,694 Total real estate and other assets available and held for sale and classified as discontinued operations $ 11,518 $ 2,299,711 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 5,715 $ 92,865 Finance lease liabilities — 161,258 Debt obligations, net — 714,296 Total liabilities associated with real estate held for sale and classified as discontinued operations $ 5,715 $ 968,419 The transaction described above involving the Company's net lease business qualified for discontinued operations and the following table summarizes net income from discontinued operations for the three and six months ended June 30, 2022 and 2021 ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Revenues: Operating lease income $ — $ 40,752 $ 35,596 $ 83,265 Interest income — 889 885 1,749 Interest income from sales-type leases — 8,532 8,803 17,159 Other income — 1,161 4,292 2,436 Total revenues — 51,334 49,576 104,609 Costs and expenses: Interest expense (1) — 10,776 7,484 21,530 Real estate expense — 6,972 5,072 15,148 Depreciation and amortization (1) — 13,087 — 26,141 Recovery of loan losses — (105) — (257) Recovery of losses on net investment in leases — (1,044) — (2,646) Impairment of assets (2) — — 1,492 1,528 Other expense (3) — — (5,669) — Total costs and expenses — 29,686 8,379 61,444 Income from sales of real estate — 2,114 683,738 2,114 Income from discontinued operations before earnings from equity method investments and other items — 23,762 724,935 45,279 Earnings from equity method investments — 1,599 127,129 2,600 Loss on early extinguishment of debt, net — — (41,408) — Net income from discontinued operations before income taxes — 25,361 810,656 47,879 Income tax expense — (46) (12,968) (79) Net income from discontinued operations — 25,315 797,688 47,800 Net (income) from discontinued operations attributable to noncontrolling interests — (2,273) (179,089) (4,838) Net income from discontinued operations attributable to iStar Inc. $ — $ 23,042 $ 618,599 $ 42,962 (1) For the six months ended June 30, 2022, the Company recorded $1.3 million of “Interest expense” in its consolidated statements of operations from its Ground Leases with SAFE. For the three and six months ended June 30, 2021, the Company recorded $2.1 million and $4.1 million, respectively, of “Interest expense” and $0.4 million and $0.7 million, respectively, of “Depreciation and amortization” in its consolidated statements of operations from its Ground Leases with SAFE. (2) During both the six months ended June 30, 2022 and 2021, the Company sold assets and recognized aggregate impairments of $1.5 million in connection with the sales. (3) Represents the reversal of other expenses recognized in connection with the settlement of interest rate hedges during the six months ended June 30, 2022. The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the six months ended June 30, 2022 and 2021 ($ in thousands): For the Six Months Ended June 30, 2022 2021 Cash flows provided by operating activities $ 119,950 $ 43,934 Cash flows provided by investing activities 2,660,531 4,845 |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate | Note 4—Real Estate The Company’s real estate assets were comprised of the following ($ in thousands): As of June 30, 2022 December 31, 2021 Land, at cost $ 7,125 $ 6,831 Buildings and improvements, at cost 104,784 106,679 Less: accumulated depreciation (21,678) (21,360) Real estate, net 90,231 92,150 Real estate available and held for sale (1) 1,970 301 Total real estate $ 92,201 $ 92,451 (1) As of June 30, 2022 and December 31, 2021, the Company had $2.0 million and $0.3 million, respectively, of residential homes/condominiums available for sale in its operating properties portfolio. Dispositions— Impairments— Tenant Reimbursements— and $ million for the three and six months ended June 30, 2022, respectively, and and $ million for the three and six months ended June 30, 2021, respectively Allowance for Doubtful Accounts— Future Minimum Operating Lease Payments Operating Year Properties 2022 (remaining six months) $ 3,236 2023 6,322 2024 6,206 2025 5,600 2026 5,125 Thereafter 4,361 |
Net Investment in Leases
Net Investment in Leases | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Net Investment in Leases | Note 5—Net Investment in Leases In June 2021, the Company acquired two parcels leasehold Company’s consolidated balance sheet at the time of acquisition. In January 2022, the Company sold the Ground Lease to an investment fund in which the Company owns a 53% noncontrolling interest (refer to Note 8 – Ground Lease Plus Fund). One 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 sheet at the time of acquisition. 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. In January 2022, the Company sold the Ground Lease to the Ground Lease Plus Fund (refer to Note 8). In January 2022, the Company entered into a commitment to acquire land for $36.0 million and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of an existing multifamily property. As of June 30, 2022, the Company had funded $32.0 million of this commitment. SAFE (refer to Note 8) waived its right of first refusal on this investment but entered into an agreement with the Company pursuant to which SAFE would acquire the land and related Ground Lease when certain construction related conditions are met. SAFE acquired the Ground Lease from the Company in July 2022. The Company’s net investment in leases were comprised of the following as of June 30, 2022 and December 31, 2021 ($ in thousands): June 30, 2022 December 31, 2021 Total undiscounted cash flows $ 356,302 $ 524,712 Unguaranteed estimated residual value 21,750 42,000 Present value discount (345,673) (523,497) Allowance for losses on net investment in leases (380) — Net investment in leases (1) $ 31,999 $ 43,215 (1) As of June 30, 2022 and December 31, 2021, the Company’s net investment in lease was current in its payment status and performing in accordance with the terms of the lease. Future Minimum Lease Payments under Sales-type Leases Amount 2022 (remaining six months) $ 520 2023 1,056 2024 1,204 2025 1,240 2026 1,264 Thereafter 351,018 Total undiscounted cash flows $ 356,302 Allowance for Losses on Net Investment in Leases Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Allowance for losses on net investment in leases at beginning of period (1) $ 281 $ 9,270 $ — $ 10,871 Provision for (recovery of) losses on net investment in leases (2) 99 (265) 380 (1,866) Allowance for losses on net investment in leases at end of period (1) $ 380 $ 9,005 $ 380 $ 9,005 (1) All 2021 amounts were for net investment in leases included in the Net Lease Sale (refer to Note 3 – Net Lease Sale and Discontinued Operations). (2) During the three and six months ended June 30, 2022, the Company recorded a provision for losses on net investment in leases of $0.1 million and $0.4 million, respectively, due primarily to the macroeconomic forecast on commercial real estate markets. During the three and six months ended June 30, 2021, the Company recorded a recovery of losses on net investment in leases of $0.3 million and $1.9 million (both of which are included in “Net income from discontinued operations”), respectively, due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. |
Land and Development
Land and Development | 6 Months Ended |
Jun. 30, 2022 | |
Land And Development [Abstract] | |
Land and Development | Note 6—Land and Development The Company’s land and development assets were comprised of the following ($ in thousands): As of June 30, December 31, 2022 2021 Land and land development, at cost $ 270,978 $ 297,621 Less: accumulated depreciation (11,260) (10,811) Total land and development, net $ 259,718 $ 286,810 Dispositions— |
Loans Receivable and Other Lend
Loans Receivable and Other Lending Investments, net | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Construction loans Senior mortgages $ 133,555 $ 184,643 Corporate/Partnership loans — 618 Subtotal - gross carrying value of construction loans (1) 133,555 185,261 Loans Senior mortgages 2,590 14,965 Subordinate mortgages 12,886 12,457 Subtotal - gross carrying value of loans 15,476 27,422 Other lending investments Held-to-maturity debt securities 35,000 96,838 Available-for-sale debt securities 23,254 28,092 Subtotal - other lending investments 58,254 124,930 Total gross carrying value of loans receivable and other lending investments 207,285 337,613 Allowance for loan losses (3,033) (4,769) Total loans receivable and other lending investments, net $ 204,252 $ 332,844 (1) As of June 30, 2022, 100% of gross carrying value of construction loans had completed construction. Allowance for Loan Losses General Allowance Held to Construction Maturity Debt Specific Three Months Ended June 30, 2022 Loans Loans Securities Allowance Total Allowance for loan losses at beginning of period $ 1,252 $ 674 $ 2,415 $ 591 $ 4,932 Provision for (recovery of) loan losses (1) (391) (224) 23,599 117 23,101 Charge-offs (1) — — (25,000) — (25,000) Allowance for loan losses at end of period $ 861 $ 450 $ 1,014 $ 708 $ 3,033 Three Months Ended June 30, 2021 Allowance for loan losses at beginning of period $ 2,893 $ 1,815 $ 2,685 $ 667 $ 8,060 (Recovery of) provision for loan losses (1) (1,253) (196) (292) (77) (1,818) Allowance for loan losses at end of period $ 1,640 $ 1,619 $ 2,393 $ 590 $ 6,242 (1) During the three months ended June 30, 2022 and 2021, the Company recorded a provision for (recovery of) loan losses of $22.6 million and ( $2.2 ) million, respectively, in its consolidated statements of operations. The provision in 2022 was due primarily to a $25.0 million charge-off on the Company’s held-to-maturity debt security, which is now recorded at its expected repayment proceeds. The recovery in 2021 was d ue primarily to the repayment of loans during the three months ended June 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since March 31, 2021. Of this amount, $0.4 million related to a provision for loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities .” Changes in the Company’s allowance for loan losses were as follows for the six months ended June 30, 2022 and 2021 ($ in thousands): General Allowance Held to Construction Maturity Debt Specific Six Months Ended June 30, 2022 Loans Loans Securities Allowance Total Allowance for loan losses at beginning of period $ 1,213 $ 676 $ 2,304 $ 576 $ 4,769 Provision for (recovery of) loan losses (1) (352) (226) 23,710 132 23,264 Charge-offs (1) — — (25,000) — (25,000) Allowance for loan losses at end of period $ 861 $ 450 $ 1,014 $ 708 $ 3,033 Six Months Ended June 30, 2021 Allowance for loan losses at beginning of period $ 6,541 $ 1,643 $ 3,093 $ 743 $ 12,020 Recovery of loan losses (1) (4,901) (24) (700) (153) (5,778) Allowance for loan losses at end of period $ 1,640 $ 1,619 $ 2,393 $ 590 $ 6,242 (1) During the six months ended June 30, 2022 and 2021, the Company recorded a provision for (recovery of) loan losses of $22.7 million and ($5.8) million, respectively, in its consolidated statements of operations. The provision in 2022 was due primarily to a $25.0 million charge-off on the Company’s held-to-maturity debt security, which is now recorded at its expected repayment proceeds. The recovery in 2021 was d ue primarily to the repayment of loans during the six months ended June 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of June 30, 2022 and December 31, 2021 ($ in thousands): Individually Collectively Evaluated for Evaluated for Impairment (1) Impairment Total As of June 30, 2022 Construction loans (2) $ 60,256 $ 73,299 $ 133,555 Loans (2) — 15,476 15,476 Held-to-maturity debt securities — 35,000 35,000 Available-for-sale debt securities (3) — 23,254 23,254 Less: Allowance for loan losses (708) (2,325) (3,033) Total $ 59,548 $ 144,704 $ 204,252 As of December 31, 2021 Construction loans (2) $ 59,640 $ 125,621 $ 185,261 Loans (2) — 27,422 27,422 Held-to-maturity debt securities — 96,838 96,838 Available-for-sale debt securities (3) — 28,092 28,092 Less: Allowance for loan losses (576) (4,193) (4,769) Total $ 59,064 $ 273,780 $ 332,844 (1) The carrying value of this loan includes an amortized exit fee of $0.8 million and $0.8 million as of June 30, 2022 and December 31, 2021, 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 includes unamortized discounts, premiums, deferred fees and costs totaling net premiums (discounts) of $0.3 million and ($0.2) million as of June 30, 2022 and December 31, 2021, respectively. (3) Available-for-sale debt securities are evaluated for impairment under ASC 326-30 – Financial Instruments-Credit Losses . Credit Characteristics time as: (1) interest payments become 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. The Company’s amortized cost basis in performing senior mortgages, corporate/partnership loans and subordinate mortgages, presented by year of origination and by credit quality, as indicated by risk rating, as of June 30, 2022 were as follows ($ in thousands): Year of Origination 2022 2021 2020 2019 2018 Prior to 2018 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — 2,590 2,590 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — 64,323 — 64,323 3.5 — — — — 8,976 — 8,976 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ — $ — $ — $ 73,299 $ 2,590 $ 75,889 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 12,886 12,886 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 12,886 $ 12,886 Total $ — $ — $ — $ — $ 73,299 $ 15,476 $ 88,775 (1) As of June 30, 2022, excludes $60.3 million for one loan on non-accrual status. The Company’s amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Less Than Greater or Equal Than Total Current to 90 Days 90 Days Past Due Total As of June 30, 2022 Senior mortgages $ 75,889 $ — $ 60,256 60,256 $ 136,145 Subordinate mortgages 12,886 — — — 12,886 Total $ 88,775 $ — $ 60,256 $ 60,256 $ 149,031 As of December 31, 2021 Senior mortgages $ 139,968 $ — $ 59,640 59,640 $ 199,608 Corporate/Partnership loans 618 — — — 618 Subordinate mortgages 12,457 — — — 12,457 Total $ 153,043 $ — $ 59,640 $ 59,640 $ 212,683 Impaired Loans As of June 30, 2022 As of December 31, 2021 Unpaid Unpaid Amortized Principal Related Amortized Principal Related Cost Balance Allowance Cost Balance Allowance With an allowance recorded: Senior mortgages (1) $ 60,256 $ 59,505 $ (708) $ 59,640 $ 58,888 $ (576) Total $ 60,256 $ 59,505 $ (708) $ 59,640 $ 58,888 $ (576) (1) The Company has one non-accrual loan as of June 30, 2022 and December 31, 2021 that is considered impaired and included in the table above. The Company did no t record any interest income on impaired loans for the three and six months ended June 30, 2022 and 2021. 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 sheet at the time of acquisition. In January 2022, the Company sold its loan receivable held for sale to the Ground Lease Plus Fund (refer to Note 8). Other lending investments Net Net Amortized Unrealized Estimated Carrying Face Value Cost Basis Gain (Loss) Fair Value Value As of June 30, 2022 Available-for-Sale Securities Municipal debt securities $ 23,640 $ 23,640 $ (386) $ 23,254 $ 23,254 Held-to-Maturity Securities Debt securities (1) 35,000 35,000 — 35,000 35,000 Total $ 58,640 $ 58,640 $ (386) $ 58,254 $ 58,254 As of December 31, 2021 Available-for-Sale Securities Municipal debt securities $ 23,855 $ 23,855 $ 4,237 $ 28,092 $ 28,092 Held-to-Maturity Securities Debt securities 100,000 96,838 — 96,838 96,838 Total $ 123,855 $ 120,693 $ 4,237 $ 124,930 $ 124,930 (1) During the three months ended June 30, 2022, the Company received a $40.0 million repayment, reduced the maturity date by six months to December 30, 2022 and recorded a $25.0 million provision in ‘Provision for (recovery of) loan losses” in its consolidated statements of operations on its debt security. As of June 30, 2022, the contractual maturities of the Company’s securities were as follows ($ 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 $ 35,000 $ 35,000 $ — $ — After one year through 5 years — — — — After 5 years through 10 years — — — — After 10 years — — 23,640 23,254 Total $ 35,000 $ 35,000 $ 23,640 $ 23,254 |
Other Investments
Other Investments | 6 Months Ended |
Jun. 30, 2022 | |
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 Equity Method Investments as of For the Three Months Ended For the Six Months Ended June 30, December 31, June 30, June 30, 2022 2021 2022 2021 2022 2021 Real estate equity investments Safehold Inc. ("SAFE") (1) $ 1,405,985 $ 1,168,532 $ 14,720 $ 9,703 $ 31,749 $ 21,115 Ground Lease Plus Fund 65,068 17,630 520 — 1,289 — Other real estate equity investments 38,458 44,349 3,773 (1,461) 7,384 (2,063) Subtotal 1,509,511 1,230,511 19,013 8,242 40,422 19,052 Other strategic investments (2) 47,281 66,770 380 2,856 4,003 3,814 Total $ 1,556,792 $ 1,297,281 $ 19,393 $ 11,098 $ 44,425 $ 22,866 (1) As of June 30, 2022, the Company owned 40.1 million shares of SAFE common stock which, based on the closing price of $35.37 on June 30, 2022, had a market value of $1.4 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 six months ended June 30, 2022 and 2021, equity in earnings includes dilution gains of $0.9 million and $0.5 million, respectively, resulting from SAFE equity offerings. (2) During the six months ended June 30, 2021, 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 – Investments – Equity Securities, the Company remeasured its equity investment at fair value and recognized a mark-to-market gain of $5.1 million in “Other income” in the Company’s consolidated statements of operations. The Company’s equity security was redeemed at its carrying value in the fourth quarter of 2021. Safehold Inc. In March 2022, the Company acquired 3,240,000 shares of SAFE’s common stock in a private placement for $191.2 million. 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 shareholders, 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% ; and ● provides the Company certain preemptive rights. 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 June 30, 2022 and 2021, the Company recorded $5.2 million and $3.5 million, respectively, of management fees pursuant to its management agreement with SAFE. During the six months ended June 30, 2022 and 2021, the Company recorded $9.7 million and $7.0 million, respectively, of management fees pursuant to its management agreement with SAFE. The Company is also entitled to receive certain expense reimbursements, including for the allocable costs of its personnel that perform certain legal, accounting, due diligence tasks and other services that third-party professionals or outside consultants otherwise would perform. Historically, pursuant to the Company’s option under the management agreement, the Company has elected to not seek reimbursement for certain expenses. This historical election is not a waiver of reimbursement for similar expenses in future periods and the Company has started to elect to seek, and may further seek in the future, reimbursement of such additional expenses that it has not previously sought, including, without limitation, rent, overhead and certain personnel costs. During the three months ended June 30, 2022 and 2021, the Company recognized $3.1 million and $1.9 million, respectively, of expense reimbursements pursuant to its management agreement with SAFE. During the six months ended June 30, 2022 and 2021, the Company recognized $6.3 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 for the periods presented, all of which were approved by the Company’s and SAFE’s independent directors: In October 2017, the Company closed on a 99-year and in January 2021 In June 2020, Net Lease Venture II (see Note 3) acquired the leasehold interest in an office laboratory property in Honolulu, HI and simultaneously entered into a 99-year Ground Lease with SAFE. In November 2021, the Company acquired the property from Net Lease Venture II. The Company paid $0.6 million to its partner to acquire its equity interest in the property and assumed a $44.4 million mortgage on the property. The Company sold the property in the first quarter of 2022. Prior to the sale, SAFE paid $0.3 million to terminate a purchase option that allowed the Company to purchase the land at the expiration of the Ground Lease. 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. 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 the Loan Fund (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. In January 2022, the Company sold the Ground Leases to the Ground Lease Plus Fund (see below). 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 Ground Lease Plus Fund. In November 2021, the Company and SAFE entered into an agreement pursuant to 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 is $33.3 million, plus an amount necessary for the Company to achieve the greater of a 1.25x multiple and a 12% return on its investment. In addition, the Ground Lease provides for a leasehold improvement allowance up to a maximum of $51.8 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 Lease or fund the leasehold improvement allowance. There can be no assurance that the conditions to closing will be satisfied and that SAFE will acquire the land and Ground Lease from the Ground Lease Plus Fund (refer to Ground Lease Plus Fund below). In December 2021, the Company’s partner in a venture recapitalized an existing multifamily property, which included a Ground Lease provided by SAFE. As part of the recapitalization, the Company’s partner acquired its 50% equity interest in the entity and the mezzanine loan held by the Company was repaid in full. During the three and six months ended June 30, 2021, the Company recorded $0.6 million and $1.1 million, respectively, of interest income on the mezzanine loan. In January 2022, the Company and SAFE entered into an agreement pursuant to which SAFE would acquire land and a related Ground Lease originated by the Company when certain construction related conditions are met. The purchase price to be paid is a maximum of $36.0 million (refer to Note 5), plus an amount necessary for the Company to achieve the greater of a 1.05x multiple and a 10% return on its investment. There can be no assurance that the conditions to closing will be satisfied and that SAFE will acquire the land and Ground Lease from the Company. In February 2022, the Loan Fund (refer to Other Strategic Investments below) committed to provide a $130.0 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan is for the Ground Lease tenant’s recapitalization of a life science property. The Loan Fund received $9.0 million of consideration from SAFE in connection with this transaction. In April 2022, the Company sold a Ground Lease on a hotel property to SAFE for $9.0 million. The Company previously owned a 50% equity interest in a venture that owned the hotel property. The Company did not recognize any gain or loss on the sale. In June 2022, the Loan Fund (refer to Other Strategic Investments below) committed to provide a $105.0 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan is for the Ground Lease tenant’s recapitalization of a mixed-use property. The Loan Fund received $5.0 million of consideration from SAFE in connection with this transaction. Ground Lease Plus Fund In November 2021, the Company acquired land for $33.3 million and simultaneously structured and entered into a Ground Lease on which a multi-family project will be constructed. In December 2021, the Company sold the Ground Lease to the Ground Lease Plus Fund and recognized no gain or loss on the sale. The Company and SAFE entered into an agreement pursuant to which SAFE would acquire the land and related Ground Lease from the Ground Lease Plus Fund when certain construction related conditions are met by a specified time period (refer to “Safehold Inc.” above). In January 2022, the Company sold two Ground Leases to the Ground Lease Plus Fund (refer to Note 5) and recognized an aggregate $0.5 million of gains in “Income from sales of real estate” on the sale. The Company and SAFE entered into an agreement pursuant to which SAFE would acquire the land properties and related Ground Leases from the Ground Lease Plus Fund when certain construction related conditions are met by a specified time period (refer to “Safehold Inc.” above). Other real estate equity investments Other strategic investments In January 2021, the Company sold two loans for $83.4 million to a newly formed entity in which the Company owns a 53.0% noncontrolling equity interest (the “Loan Fund”). 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 the Loan Fund. The Company does not have a controlling interest in the Loan Fund 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. In February 2022, the Loan Fund committed to provide a $130.0 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 life science property. In June 2022, the Loan Fund committed to provide a $105.0 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 mixed-use property. Summarized investee financial information Revenues Expenses Net Income Attributable to Parent For the Six Months Ended June 30, 2022 SAFE $ 125,247 $ 82,157 $ 47,551 For the Six Months Ended June 30, 2021 SAFE $ 87,720 $ 57,536 $ 31,640 |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
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): (1) As of June 30, 2022 December 31, 2021 Other assets (2) $ 19,006 $ 16,040 Operating lease right-of-use assets (3) 18,101 20,437 Restricted cash 5,179 54,395 Other receivables 3,739 5,054 Corporate furniture, fixtures and equipment, net (4) 1,696 1,852 Leasing costs, net (5) 665 818 Intangible assets, net (6) 350 1,209 Deferred financing fees, net 204 629 Deferred expenses and other assets, net $ 48,940 $ 100,434 (1) Certain items have been reclassified to “Real estate and other assets available and held for sale and classified as discontinued operations” (refer to Note 3). (2) 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). (3) 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 June 30, 2022 and 2021, the Company recognized $1.2 million and $1.2 million, respectively, in "General and administrative" and $0.3 million and $0.2 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. During the six months ended June 30, 2022 and 2021, the Company recognized $2.4 million and $2.5 million, respectively, in "General and administrative" and $0.4 million and $0.3 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. (4) Accumulated depreciation on corporate furniture, fixtures and equipment was $12.0 million and $14.8 million as of June 30, 2022 and December 31, 2021, respectively. (5) Accumulated amortization of leasing costs was $0.4 million and $1.1 million as of June 30, 2022 and December 31, 2021, respectively. (6) 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 $0.1 million and $10.2 million as of June 30, 2022 and December 31, 2021, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases for the three and six months ended June 30, 2021 was $0.1 million and $ 0.7 million, respectively. This amount is included in “Depreciation and amortization” in the Company’s consolidated statements of operations. As of June 30, 2022, the weighted average remaining amortization period for the Company’s intangible assets was approximately 5.4 years. Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of June 30, 2022 December 31, 2021 Accrued expenses $ 65,760 $ 151,810 Accrued interest payable 27,556 31,293 Other liabilities (1) 27,120 30,362 Operating lease liabilities (see table above) 20,355 23,267 Accounts payable, accrued expenses and other liabilities $ 140,791 $ 236,732 (1) As of June 30, 2022 and December 31, 2021, other liabilities includes $20.2 million and $20.1 million, respectively, of deferred income. As of December 31, 2021, other liabilities includes $0.1 million of expected credit losses for unfunded loan commitments. |
Debt Obligations, net
Debt Obligations, net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt Obligations, net | Note 10—Debt Obligations, net The Company’s debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled June 30, 2022 December 31, 2021 Interest Rates Maturity Date Secured credit facilities: Revolving Credit Facility $ — $ — LIBOR + 2.00 % (1) September 2022 Senior Term Loan — 491,875 LIBOR + 2.75 % (2) — Total secured credit facilities — 491,875 Unsecured notes: 3.125% senior convertible notes (3) 93,110 287,500 3.125 % September 2022 4.75% senior notes (4) 767,941 775,000 4.75 % October 2024 4.25% senior notes (5) 550,000 550,000 4.25 % August 2025 5.50% senior notes (6) 346,906 400,000 5.50 % February 2026 Total unsecured notes 1,757,957 2,012,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50 % October 2035 Total debt obligations 1,857,957 2,604,375 Debt discounts and deferred financing costs, net (24,707) (32,201) Total debt obligations, net (7) $ 1,833,250 $ 2,572,174 (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 accrued 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) 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 June 30, 2022 was 72.8554 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $13.73 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. During the three months ended June 30, 2022 and 2021, the Company recognized $0.9 million and $2.2 million, respectively, of contractual interest on the 3.125% Convertible Notes. During the six months ended June 30, 2022 and 2021, the Company recognized $3.2 million and $4.5 million, respectively, of contractual interest on the 3.125% Convertible Notes. (4) The Company can prepay these senior notes without penalty beginning July 1, 2024. (5) The Company can prepay these senior notes without penalty beginning May 1, 2025. (6) The Company can prepay these senior notes without penalty beginning August 15, 2024. (7) The Company capitalized interest relating to development activities of $ 0.4 million and $ 0.2 million during the three months ended June 30, 2022 and 2021, respectively, and $0.7 million and $0.4 million during the six months ended June 30, 2022 and 2021, respectively. Future Scheduled Maturities Unsecured Debt Secured Debt Total 2022 (remaining six months) $ 93,110 $ — $ 93,110 2023 — — — 2024 767,941 — 767,941 2025 550,000 — 550,000 2026 346,906 — 346,906 Thereafter 100,000 — 100,000 Total principal maturities 1,857,957 — 1,857,957 Unamortized discounts and deferred financing costs, net (24,707) — (24,707) Total debt obligations, net $ 1,833,250 $ — $ 1,833,250 Senior Term Loan Revolving Credit Facility Unsecured Notes In April 2022, the Company completed separate, privately-negotiated transactions with holders of $194 million aggregate principal amount of the Company's 3.125% Convertible Notes in which the noteholders exchanged their convertible notes with the Company for 13.75 million newly issued shares of the Company's common stock and aggregate cash payments of $14 million. The 3.125% Convertible Senior Notes received by the Company were retired. The Company recognized a net increase in shareholders’ equity of $180.6 million inclusive of a $118.1 million loss on extinguishment of debt in connection with these transactions. In April 2022, the Company redeemed $7.1 million principal amount of its 4.75% senior notes due October 2024 for $7.2 million. The Company recognized a $0.2 million loss on extinguishment of debt in connection with these transactions. In June 2022, the Company redeemed $53.1 million principal amount of its 5.50% senior notes due February 2026 for $50.6 million. The Company recognized a $1.7 million net gain on extinguishment of debt in connection with these transactions. Debt Covenants The Company’s Revolving Credit Facility contains 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. 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 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 Revolving Credit Facility contains 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 | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11—Commitments and Contingencies Unfunded Commitments As of June 30, 2022, 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 $ 1,877 $ 4,271 $ 149,502 $ 155,650 Strategic Investments — 3,161 2,249 5,410 Total $ 1,877 $ 7,432 $ 151,751 $ 161,060 Other Commitments (1) 2022 (remaining six months) $ 3,237 2023 6,295 2024 6,178 2025 6,166 2026 142 Thereafter 162 Total undiscounted cash flows 22,180 Present value discount (1) (1,825) Lease liabilities $ 20,355 (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 4.7% and the weighted average remaining lease term is 4.2 years. During the three months ended June 30, 2022 and 2021, the Company made payments of $1.7 million and $0.4 million, respectively, related to its operating leases and during the three months ended June 30, 2021 made payments of $1.4 million related to finance leases with SAFE . During the six months ended June 30, 2022 and 2021, the Company made payments of $3.4 million and $1.2 million, respectively, related to its operating leases and $1.3 million and $2.7 million, respectively, related to finance leases with SAFE . Legal Proceedings |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 12—Derivatives The Company’s use of derivative financial instruments has historically been limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company’s operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. The Company may have derivatives that are not designated as hedges because they do not meet the strict hedge accounting requirements. Although not designated as hedges, such derivatives are entered into to manage the Company’s exposure to interest rate movements and other identified risks. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands): (1) Derivative Liabilities Balance Sheet Fair As of June 30, 2022 Location Value Derivatives Designated in Hedging Relationships Interest rate swaps Liabilities associated with real estate held for sale and classified as discontinued operations $ — Total $ — As of December 31, 2021 Derivatives Designated in Hedging Relationships Interest rate swaps Liabilities associated with real estate held for sale and classified as discontinued operations $ 8,395 Total $ 8,395 (1) Over the next 12 months, the Company expects that $2.4 million related to its proportionate share of cash flow hedges held by SAFE will be reclassified from “Accumulated other comprehensive income (loss)” as a decrease to earnings from equity method investments. The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ 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 June 30, 2022 Interest rate swaps Earnings from equity method investments $ 4,382 $ (580) For the Three Months Ended June 30, 2021 Interest rate swaps Net income from discontinued operations $ (764) $ (2,029) Interest rate swaps Earnings from equity method investments — (457) For the Six Months Ended June 30, 2022 Interest rate swaps Earnings from equity method investments $ 7,138 $ (1,201) For the Six Months Ended June 30, 2021 Interest rate swaps Net income from discontinued operations $ 2,573 $ (4,133) Interest rate swaps Earnings from equity method investments 8,638 (691) |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Note 13—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 $4.0 million, $3.1 million and $4.7 million on its Series D, G and I Cumulative Redeemable Preferred Stock during both the six months ended June 30, 2022 and 2021. The character of the 2021 dividends was 100% capital gain distribution, of which 18.31% represented unrecaptured section 1250 gain. (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 in February 2022, the Company's Board of Directors authorized an increase to the stock repurchase program to $50.0 million. Accumulated Other Comprehensive Income (Loss) As of June 30, 2022 December 31, 2021 Unrealized (losses) gains on available-for-sale securities $ (386) $ 4,237 Unrealized losses on cash flow hedges (17,486) (25,824) Accumulated other comprehensive loss $ (17,872) $ (21,587) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Employee Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Employee Benefits | Note 14—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 six months ended June 30, 2022. iPIP Investment Pool 2019-2020 2021-2022 Points at beginning of period 95.20 84.75 Granted — 7.95 Forfeited — (0.35) Points at end of period 95.20 92.35 As of June 30, 2022, investments with an aggregate gross book value of $764 million, 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 $435 million, including 5.0 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 six months ended June 30, 2022. iPIP Investment Pool 2013 ‑ 2014 2015 ‑ 2016 (1) 2017 ‑ 2018 Points at beginning of period 80.17 70.40 75.34 Granted — — — Points at end of period 80.17 70.40 75.34 (1) As of June 30, 2022, all awards under the 2015-2016 Plan had been paid. During the six months ended June 30, 2022, the Company recorded a $37.1 million reduction of expense related to the 2013-2018 iPIP plans, primarily due to a decrease in the price per share of SAFE common stock. During the six months ended June 30, 2021, the Company recorded $15.1 million of expense related to the 2013-2018 iPIP plans. As of June 30, 2022, investments with an aggregate gross book value of $13 million were attributable to the 2013-2014 Plan and investments with an aggregate gross book value of $238 million, including 7.6 million shares of SAFE common stock acquired by the Company, were attributable to the 2017-2018 Plan. As of June 30, 2022 there were no investments attributable to the 2015-2016 Plan. During the six months ended June 30, 2022, the Company made distributions to participants in the 2013-2014 investment pool. The iPIP participants received total distributions in the amount of $19.6 million as compensation, comprised of cash and 412,041 shares of the Company’s common stock with a fair value of $16.06 per share, which are fully-vested and issued under the 2009 LTIP. After deducting statutory minimum tax withholdings, a total of 215,657 shares of the Company’s common stock were issued. During the six months ended June 30, 2022, the Company made distributions to participants in the 2015-2016 investment pool. The iPIP participants received total distributions in the amount of $19.2 million as compensation, comprised of cash and 402,731 shares of the Company’s common stock with a fair value of $16.06 per share, which are fully-vested and issued under the 2009 LTIP. After deducting statutory minimum tax withholdings, a total of 193,416 shares of the Company’s common stock were issued. During the six months ended June 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. After deducting statutory minimum tax withholdings, a total of 57,920 shares of the Company’s common stock were issued. As of June 30, 2022 and December 31, 2021, the Company had accrued compensation costs relating to iPIP of $47.0 million and $116.6 million, respectively, which are included in “Accounts payable, accrued expenses and other liabilities” on the Company’s consolidated balance sheets. Long-Term Incentive Plan As of June 30, 2022, an aggregate of 2.3 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 754 Granted 214 Vested (283) Forfeited (13) Nonvested at end of period 672 As of June 30, 2022, there was $7.7 million of total unrecognized compensation cost related to all unvested restricted stock units that are expected to be recognized over a weighted average remaining vesting/service period of 1.54 years. Directors’ Awards 401(k) Plan |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 15—Earnings Per Share The following table presents a reconciliation of income from operations used in the basic and diluted earnings per share (“EPS”) calculations ($ in thousands, except for per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net loss from continuing operations $ (132,494) $ (36,731) $ (134,382) $ (51,227) Net (income) loss from continuing operations attributable to noncontrolling interests (117) 20 (99) 65 Preferred dividends (5,874) (5,874) (11,748) (11,748) Net loss from continuing operations and allocable to common shareholders for basic and diluted earnings per common share $ (138,485) $ (42,585) $ (146,229) $ (62,910) For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Earnings allocable to common shares: Numerator for basic and diluted earnings per share: Net loss from continuing operations and allocable to common shareholders $ (138,485) $ (42,585) $ (146,229) $ (62,910) Net income from discontinued operations — 25,315 797,688 47,800 Net (income) from discontinued operations attributable to noncontrolling interests — (2,273) (179,089) (4,838) Net income (loss) allocable to common shareholders $ (138,485) $ (19,543) $ 472,370 $ (19,948) Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic and diluted earnings per common share 81,442 72,872 75,274 73,374 Basic and diluted earnings per common share: (1) Net loss from continuing operations and allocable to common shareholders $ (1.70) $ (0.59) $ (1.94) $ (0.86) Net income from discontinued operations and allocable to common shareholders — 0.32 8.22 0.59 Net income (loss) allocable to common shareholders $ (1.70) $ (0.27) $ 6.28 $ (0.27) (1) For the three and six months ended June 30, 2022 and 2021, the effect of certain of the Company’s restricted stock awards were anti-dilutive due to the Company having a net loss from continuing operations and allocable to common shareholders for the period. For the three months ended June 30, 2022 and 2021, 1,787,708 and 4,700,805 shares, respectively, of the 3.125% Convertible Notes were antidilutive based upon the conversion price for such periods. For the six months ended June 30, 2022 and 2021, 5,308,491 and 3,797,296 shares, respectively, of the 3.125% Convertible Notes were antidilutive based upon the conversion price for such periods . |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Note 16—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 June 30, 2022 Recurring basis: Available-for-sale securities (1) $ 23,254 $ — $ — $ 23,254 Non-recurring basis: Real estate, net (2) 811 — — 811 Held-to-maturity securities (3) 35,000 — — 35,000 As of December 31, 2021 Recurring basis: Derivative liabilities (1) $ 8,395 $ — $ 8,395 $ — Available-for-sale securities (1) 28,092 — — 28,092 (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 $1.8 million impairment on an operating property with an estimated fair value of $0.8 million. The estimated fair value is based on the cash flows expected to be received. (3) In the second quarter 2022, the Company received a $40.0 million repayment on a held-to-maturity security. The Company then recorded a $25.0 million charge-off (refer to Note 7) on the held-to-maturity security to record the security at the expected future cash flows to be received. The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the six months ended June 30, 2022 and 2021 ($ in thousands): 2022 2021 Beginning balance $ 28,092 $ 25,274 Purchases — 3,375 Repayments (215) (201) Unrealized losses recorded in other comprehensive income (4,623) (374) Ending balance $ 23,254 $ 28,074 Fair values of financial instruments— As of June 30, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Net investment in leases (refer to Note 5) (1) $ 32 $ 32 $ 43 $ 43 Loans receivable and other lending investments, net (1) 204 204 333 345 Loans receivable held for sale (1) — — 43 43 Cash and cash equivalents (2) 1,401 1,401 340 340 Restricted cash (2) 5 5 54 54 Liabilities Debt obligations, net (1)(3) Level 1 1,734 1,717 2,473 2,799 Level 3 99 101 99 104 Total debt obligations, net 1,833 1,818 2,572 2,903 (1) The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loans receivable held for sale and certain debt obligations 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 June 30, 2022 and December 31, 2021, t he fair value of the Company’s unsecured notes is classified as Level 1 in the fair value hierarchy. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s 3.125% Senior Convertible Notes was $99.6 million and $527.5 million, respectively (refer to Note 10). |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 17—Segment Reporting The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Net Lease, Real Estate Finance, Operating Properties and Land and Development. The Net Lease segment (refer to Note 3 - Net Lease Sale and Discontinued Operations) includes the Company’s investments in SAFE and its Ground Lease adjacent businesses (refer to Note 8). The Real Estate Finance segment includes all of the Company’s activities related to senior and mezzanine real estate loans and real estate related securities. The Operating Properties segment includes the Company’s activities and operations related to its commercial and residential properties. The Land and Development segment includes the Company’s activities related to its developable land portfolio. The Company evaluates performance-based on the following financial measures for each segment. The Company’s segment information is as follows ($ in thousands): Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Three Months Ended June 30, 2022 Operating lease income $ — $ — $ 3,082 $ 100 $ — $ 3,182 Interest income — 4,221 — — — 4,221 Interest income from sales-type leases 376 — — — — 376 Other income 5,219 26 7,592 1,318 1,726 15,881 Land development revenue — — — 24,403 — 24,403 Earnings (losses) from equity method investments 15,240 769 3,673 100 (389) 19,393 Income from sales of real estate — — — — — — Total revenue and other earnings 20,835 5,016 14,347 25,921 1,337 67,456 Real estate expense (461) — (8,261) (4,294) — (13,016) Land development cost of sales — — — (24,095) — (24,095) Other expense (521) (40) — (238) (724) (1,523) Allocated interest expense (13,162) (2,196) (1,139) (2,745) (4,907) (24,149) Allocated general and administrative (2) (3,838) (1,226) (625) (2,114) (4,941) (12,744) Segment profit (loss) (3) $ 2,853 $ 1,554 $ 4,322 $ (7,565) $ (9,235) $ (8,071) Other significant items: Provision for loan losses $ — $ 22,578 $ — $ — $ — $ 22,578 Provision for losses on net investment in leases 99 — — — — 99 Impairment of assets — — 1,750 — 18 1,768 Depreciation and amortization — — 969 227 142 1,338 Capitalized expenditures — — 320 5,813 — 6,133 Three Months Ended June 30, 2021 Operating lease income $ — $ — $ 4,703 $ 89 $ — $ 4,792 Interest income 299 7,785 — — — 8,084 Interest income from sales-type leases 157 — — — — 157 Other income 3,529 52 3,953 1,315 54 8,903 Land development revenue — — — 32,318 — 32,318 Earnings (losses) from equity method investments 9,703 755 (2,935) 1,474 2,101 11,098 Income from sales of real estate — — 96 — — 96 Total revenue and other earnings 13,688 8,592 5,817 35,196 2,155 65,448 Real estate expense (12) — (6,256) (5,049) — (11,317) Land development cost of sales — — — (30,803) — (30,803) Other expense — (87) — — (124) (211) Allocated interest expense (14,566) (3,828) (2,030) (3,864) (4,353) (28,641) Allocated general and administrative (2) (6,120) (1,242) (664) (2,367) (5,210) (15,603) Segment profit (loss) (3) (7,010) $ 3,435 $ (3,133) $ (6,887) $ (7,532) $ (21,127) Other significant non-cash items: Provision for (recovery of) loan losses $ — $ (2,158) $ — $ — $ — $ (2,158) Provision for losses on net investment in leases 779 — — — — 779 Depreciation and amortization 1 — 1,221 228 123 1,573 Capitalized expenditures — — 432 4,571 — 5,003 Six Months Ended June 30, 2022 Operating lease income $ — $ — $ 6,056 $ 235 $ — $ 6,291 Interest income 75 9,094 — — — 9,169 Interest income from sales-type leases 732 — — — — 732 Other income 9,680 37 10,255 2,635 1,914 24,521 Land development revenue — — — 39,303 — 39,303 Earnings from equity method investments 33,038 1,783 3,718 3,665 2,221 44,425 Income from sales of real estate 492 — — — — 492 Total revenue and other earnings 44,017 10,914 20,029 45,838 4,135 124,933 Real estate expense (657) — (14,133) (8,343) — (23,133) Land development cost of sales — — — (38,591) — (38,591) Other expense (992) (159) — (320) (982) (2,453) Allocated interest expense (29,377) (5,336) (2,480) (6,988) (9,211) (53,392) Allocated general and administrative (3) (8,854) (2,350) (1,103) (4,369) (9,870) (26,546) Segment profit (loss) (4) $ 4,137 $ 3,069 $ 2,313 $ (12,773) $ (15,928) $ (19,182) Other significant items: Provision for loan losses $ — $ 22,713 $ — $ — $ — $ 22,713 Provision for losses on net investment in leases 380 — — — — 380 Impairment of assets — — 1,750 — 18 1,768 Depreciation and amortization — — 1,955 456 284 2,695 Capitalized expenditures — — 540 10,524 — 11,064 Six Months Ended June 30, 2021 Operating lease income $ — $ — $ 9,540 $ 183 $ — $ 9,723 Interest income 317 17,557 — — — 17,874 Interest income from sales-type leases 157 — — — — 157 Other income 7,007 151 6,291 2,704 5,764 21,917 Land development revenue — — — 64,567 — 64,567 Earnings (losses) from equity method investments 21,115 1,220 (6,682) 4,619 2,594 22,866 Income from sales of real estate — — 708 — — 708 Total revenue and other earnings 28,596 18,928 9,857 72,073 8,358 137,812 Real estate expense (468) — (10,055) (9,512) — (20,035) Land development cost of sales — — — (60,126) — (60,126) Other expense — (153) — — (310) (463) Allocated interest expense (28,891) (8,406) (4,073) (7,802) (8,278) (57,450) Allocated general and administrative (3) (12,057) (2,701) (1,324) (4,795) (10,657) (31,534) Segment profit (loss) (4) $ (12,820) $ 7,668 $ (5,595) $ (10,162) $ (10,887) $ (31,796) Other significant items: Recovery of loan losses $ — $ (5,800) $ — $ — $ — $ (5,800) Provision for losses on net investment in leases 780 — — — — 780 Impairment of assets — — 257 — — 257 Depreciation and amortization — — 3,208 446 320 3,974 Capitalized expenditures — — 489 9,311 — 9,800 As of June 30, 2022 Real estate, net $ — $ — $ 90,231 $ — $ — $ 90,231 Real estate available and held for sale — — 1,970 — — 1,970 Total real estate — — 92,201 — — 92,201 Real estate and other assets available and held for sale and classified as discontinued operations (1) 11,518 — — — — 11,518 Net investment in leases 31,999 — — — — 31,999 Land and development, net — — — 259,718 — 259,718 Loans receivable and other lending investments, net — 204,252 — — — 204,252 Loan receivable held for sale — — — — — — Other investments 1,471,053 23,219 38,168 290 24,062 1,556,792 Total portfolio assets 1,514,570 227,471 130,369 260,008 24,062 2,156,480 Cash and other assets 1,454,140 Total assets $ 3,610,620 As of December 31, 2021 Real estate, net $ — $ — $ 92,150 $ — $ — $ 92,150 Real estate available and held for sale — — 301 — — 301 Total real estate — — 92,451 — — 92,451 Real estate and other assets available and held for sale and classified as discontinued operations (1) 2,299,711 — — — — 2,299,711 Net investment in leases 43,215 — — — — 43,215 Land and development, net — — — 286,810 — 286,810 Loans receivable and other lending investments, net — 332,844 — — — 332,844 Loan receivable held for sale 43,215 — — — — 43,215 Other investments 1,186,162 48,862 43,252 1,096 17,909 1,297,281 Total portfolio assets $ 3,572,303 $ 381,706 $ 135,703 $ 287,906 $ 17,909 4,395,527 Cash and other assets 445,007 Total assets $ 4,840,534 (1) Refer to Note 3 – Net Lease Sale and Discontinued Operations. (2) 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. (3) General and administrative excludes stock-based compensation of ($ 17.9) million and $ 14.8 million for the three months ended June 30, 2022 and 2021, respectively, and ($30.4) million and $20.3 million for the six months ended June 30, 2022 and 2021, respectively. (4) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Segment loss $ (8,071) $ (21,127) $ (19,182) $ (31,796) Less: (Provision for) recovery of loan losses (22,578) 2,158 (22,713) 5,800 Less: Provision for losses on net investment in leases (99) (779) (380) (780) Less: Impairment of assets (1,768) — (1,768) (257) Less: Stock-based compensation income (expense) 17,923 (14,791) 30,350 (20,299) Less: Depreciation and amortization (1,338) (1,573) (2,695) (3,974) Less: Income tax (expense) benefit — (619) (3) 79 Less: Loss on early extinguishment of debt, net (116,563) — (117,991) — Less: Net income from discontinued operations — 25,315 797,688 47,800 Net income (loss) $ (132,494) $ (11,416) $ 663,306 $ (3,427) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events | |
Subsequent Events | Note 18 – Subsequent Events In July and August 2022, the Company completed a series of privately-negotiated exchange transactions with holders of approximately $47.9 million aggregate principal amount of the Company's 3.125% Convertible Notes due 2022 (refer to Note 10) in which the noteholders exchanged their convertible notes with the Company for an aggregate of approximately 2.0 million newly issued shares of the Company's common stock and aggregate cash payments of approximately $24.3 million. The convertible notes received by the Company were retired. The Company will recognize a net increase in shareholders’ equity of $24.2 million inclusive of a $6.1 million loss on extinguishment of debt in connection with these transactions. In July 2022, the Company sold a Ground Lease to SAFE for $36.0 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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 (refer to Note 3 – Net Lease Sale and Discontinued Operations) to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation |
Net lease sale and discontinued operations | Net Lease Sale and Discontinued Operations — Net Lease Sale — The portfolio sold consisted of office, entertainment and industrial properties located in the United States comprising approximately 18.3 million square feet. It included assets wholly-owned by the Company and assets owned by two joint ventures (see Net Lease Venture and Net Lease Venture II below) managed by the Company and in which it owned 51.9% interests Inc. (“SAFE”) for $122.0 million and entered into three Ground Leases with SAFE. Two net lease properties were sold to different third parties in the first quarter of 2022 and the Company’s net lease assets associated with its Ground Lease businesses were not included in the sale. The Company received net cash proceeds of $33.9 million from the sale of the two net lease properties and recognized a gain of $23.9 million in “Net income from discontinued operations” in the Company’s consolidated statements of operations. Net Lease Venture Net Lease Venture II Discontinued Operations — The following table presents the Company’s consolidated assets and liabilities recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands). As of June 30, December 31, 2022 2021 ASSETS Real estate Real estate, at cost $ — $ 1,537,655 Less: accumulated depreciation — (271,183) Total real estate, net — 1,266,472 Net investment in leases — 486,389 Loans receivable held for sale — 48,675 Other investments 1,972 103,229 Finance lease right of use assets — 150,099 Accrued interest and operating lease income receivable, net 548 2,997 Deferred operating lease income receivable, net — 63,156 Deferred expenses and other assets, net 8,998 178,694 Total real estate and other assets available and held for sale and classified as discontinued operations $ 11,518 $ 2,299,711 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 5,715 $ 92,865 Finance lease liabilities — 161,258 Debt obligations, net — 714,296 Total liabilities associated with real estate held for sale and classified as discontinued operations $ 5,715 $ 968,419 The transaction described above involving the Company's net lease business qualified for discontinued operations and the following table summarizes net income from discontinued operations for the three and six months ended June 30, 2022 and 2021 ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Revenues: Operating lease income $ — $ 40,752 $ 35,596 $ 83,265 Interest income — 889 885 1,749 Interest income from sales-type leases — 8,532 8,803 17,159 Other income — 1,161 4,292 2,436 Total revenues — 51,334 49,576 104,609 Costs and expenses: Interest expense (1) — 10,776 7,484 21,530 Real estate expense — 6,972 5,072 15,148 Depreciation and amortization (1) — 13,087 — 26,141 Recovery of loan losses — (105) — (257) Recovery of losses on net investment in leases — (1,044) — (2,646) Impairment of assets (2) — — 1,492 1,528 Other expense (3) — — (5,669) — Total costs and expenses — 29,686 8,379 61,444 Income from sales of real estate — 2,114 683,738 2,114 Income from discontinued operations before earnings from equity method investments and other items — 23,762 724,935 45,279 Earnings from equity method investments — 1,599 127,129 2,600 Loss on early extinguishment of debt, net — — (41,408) — Net income from discontinued operations before income taxes — 25,361 810,656 47,879 Income tax expense — (46) (12,968) (79) Net income from discontinued operations — 25,315 797,688 47,800 Net (income) from discontinued operations attributable to noncontrolling interests — (2,273) (179,089) (4,838) Net income from discontinued operations attributable to iStar Inc. $ — $ 23,042 $ 618,599 $ 42,962 (1) For the six months ended June 30, 2022, the Company recorded $1.3 million of “Interest expense” in its consolidated statements of operations from its Ground Leases with SAFE. For the three and six months ended June 30, 2021, the Company recorded $2.1 million and $4.1 million, respectively, of “Interest expense” and $0.4 million and $0.7 million, respectively, of “Depreciation and amortization” in its consolidated statements of operations from its Ground Leases with SAFE. (2) During both the six months ended June 30, 2022 and 2021, the Company sold assets and recognized aggregate impairments of $1.5 million in connection with the sales. (3) Represents the reversal of other expenses recognized in connection with the settlement of interest rate hedges during the six months ended June 30, 2022. The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the six months ended June 30, 2022 and 2021 ($ in thousands): For the Six Months Ended June 30, 2022 2021 Cash flows provided by operating activities $ 119,950 $ 43,934 Cash flows provided by investing activities 2,660,531 4,845 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of assets and liabilities of consolidated VIEs | As of June 30, 2022 December 31, 2021 ASSETS Real estate Real estate, at cost $ 93,835 $ 93,477 Less: accumulated depreciation (16,518) (14,987) Real estate, net 77,317 78,490 Real estate and other assets available and held for sale and classified as discontinued operations 198 886,845 Land and development, net 153,044 176,833 Cash and cash equivalents 21,318 23,908 Deferred operating lease income receivable, net 7 3 Deferred expenses and other assets, net 5,061 5,001 Total assets $ 256,945 $ 1,171,081 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 26,151 $ 24,744 Liabilities associated with real estate held for sale and classified as discontinued operations 291 493,739 Total liabilities 26,442 518,483 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedules of discontinued operations | The following table presents the Company’s consolidated assets and liabilities recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands). As of June 30, December 31, 2022 2021 ASSETS Real estate Real estate, at cost $ — $ 1,537,655 Less: accumulated depreciation — (271,183) Total real estate, net — 1,266,472 Net investment in leases — 486,389 Loans receivable held for sale — 48,675 Other investments 1,972 103,229 Finance lease right of use assets — 150,099 Accrued interest and operating lease income receivable, net 548 2,997 Deferred operating lease income receivable, net — 63,156 Deferred expenses and other assets, net 8,998 178,694 Total real estate and other assets available and held for sale and classified as discontinued operations $ 11,518 $ 2,299,711 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 5,715 $ 92,865 Finance lease liabilities — 161,258 Debt obligations, net — 714,296 Total liabilities associated with real estate held for sale and classified as discontinued operations $ 5,715 $ 968,419 The transaction described above involving the Company's net lease business qualified for discontinued operations and the following table summarizes net income from discontinued operations for the three and six months ended June 30, 2022 and 2021 ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Revenues: Operating lease income $ — $ 40,752 $ 35,596 $ 83,265 Interest income — 889 885 1,749 Interest income from sales-type leases — 8,532 8,803 17,159 Other income — 1,161 4,292 2,436 Total revenues — 51,334 49,576 104,609 Costs and expenses: Interest expense (1) — 10,776 7,484 21,530 Real estate expense — 6,972 5,072 15,148 Depreciation and amortization (1) — 13,087 — 26,141 Recovery of loan losses — (105) — (257) Recovery of losses on net investment in leases — (1,044) — (2,646) Impairment of assets (2) — — 1,492 1,528 Other expense (3) — — (5,669) — Total costs and expenses — 29,686 8,379 61,444 Income from sales of real estate — 2,114 683,738 2,114 Income from discontinued operations before earnings from equity method investments and other items — 23,762 724,935 45,279 Earnings from equity method investments — 1,599 127,129 2,600 Loss on early extinguishment of debt, net — — (41,408) — Net income from discontinued operations before income taxes — 25,361 810,656 47,879 Income tax expense — (46) (12,968) (79) Net income from discontinued operations — 25,315 797,688 47,800 Net (income) from discontinued operations attributable to noncontrolling interests — (2,273) (179,089) (4,838) Net income from discontinued operations attributable to iStar Inc. $ — $ 23,042 $ 618,599 $ 42,962 (1) For the six months ended June 30, 2022, the Company recorded $1.3 million of “Interest expense” in its consolidated statements of operations from its Ground Leases with SAFE. For the three and six months ended June 30, 2021, the Company recorded $2.1 million and $4.1 million, respectively, of “Interest expense” and $0.4 million and $0.7 million, respectively, of “Depreciation and amortization” in its consolidated statements of operations from its Ground Leases with SAFE. (2) During both the six months ended June 30, 2022 and 2021, the Company sold assets and recognized aggregate impairments of $1.5 million in connection with the sales. (3) Represents the reversal of other expenses recognized in connection with the settlement of interest rate hedges during the six months ended June 30, 2022. The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the six months ended June 30, 2022 and 2021 ($ in thousands): For the Six Months Ended June 30, 2022 2021 Cash flows provided by operating activities $ 119,950 $ 43,934 Cash flows provided by investing activities 2,660,531 4,845 |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of real estate assets | The Company’s real estate assets were comprised of the following ($ in thousands): As of June 30, 2022 December 31, 2021 Land, at cost $ 7,125 $ 6,831 Buildings and improvements, at cost 104,784 106,679 Less: accumulated depreciation (21,678) (21,360) Real estate, net 90,231 92,150 Real estate available and held for sale (1) 1,970 301 Total real estate $ 92,201 $ 92,451 (1) As of June 30, 2022 and December 31, 2021, the Company had $2.0 million and $0.3 million, respectively, of residential homes/condominiums available for sale in its operating properties portfolio. |
Schedule of future minimum lease payments to be collected under non-cancelable operating leases | Operating Year Properties 2022 (remaining six months) $ 3,236 2023 6,322 2024 6,206 2025 5,600 2026 5,125 Thereafter 4,361 |
Net Investment in Leases (Table
Net Investment in Leases (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of net investment in leases | The Company’s net investment in leases were comprised of the following as of June 30, 2022 and December 31, 2021 ($ in thousands): June 30, 2022 December 31, 2021 Total undiscounted cash flows $ 356,302 $ 524,712 Unguaranteed estimated residual value 21,750 42,000 Present value discount (345,673) (523,497) Allowance for losses on net investment in leases (380) — Net investment in leases (1) $ 31,999 $ 43,215 (1) As of June 30, 2022 and December 31, 2021, the Company’s net investment in lease was current in its payment status and performing in accordance with the terms of the lease. |
Schedule of future minimum lease payments to be collected under sales-type leases | Amount 2022 (remaining six months) $ 520 2023 1,056 2024 1,204 2025 1,240 2026 1,264 Thereafter 351,018 Total undiscounted cash flows $ 356,302 |
Schedule of changes in allowance for losses on net investment in leases | Three Months Ended Six Months Ended June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Allowance for losses on net investment in leases at beginning of period (1) $ 281 $ 9,270 $ — $ 10,871 Provision for (recovery of) losses on net investment in leases (2) 99 (265) 380 (1,866) Allowance for losses on net investment in leases at end of period (1) $ 380 $ 9,005 $ 380 $ 9,005 (1) All 2021 amounts were for net investment in leases included in the Net Lease Sale (refer to Note 3 – Net Lease Sale and Discontinued Operations). (2) During the three and six months ended June 30, 2022, the Company recorded a provision for losses on net investment in leases of $0.1 million and $0.4 million, respectively, due primarily to the macroeconomic forecast on commercial real estate markets. During the three and six months ended June 30, 2021, the Company recorded a recovery of losses on net investment in leases of $0.3 million and $1.9 million (both of which are included in “Net income from discontinued operations”), respectively, due primarily to an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. |
Land and Development (Tables)
Land and Development (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Land And Development [Abstract] | |
Schedule of land and development assets | The Company’s land and development assets were comprised of the following ($ in thousands): As of June 30, December 31, 2022 2021 Land and land development, at cost $ 270,978 $ 297,621 Less: accumulated depreciation (11,260) (10,811) Total land and development, net $ 259,718 $ 286,810 |
Loans Receivable and Other Le_2
Loans Receivable and Other Lending Investments, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 December 31, 2021 Construction loans Senior mortgages $ 133,555 $ 184,643 Corporate/Partnership loans — 618 Subtotal - gross carrying value of construction loans (1) 133,555 185,261 Loans Senior mortgages 2,590 14,965 Subordinate mortgages 12,886 12,457 Subtotal - gross carrying value of loans 15,476 27,422 Other lending investments Held-to-maturity debt securities 35,000 96,838 Available-for-sale debt securities 23,254 28,092 Subtotal - other lending investments 58,254 124,930 Total gross carrying value of loans receivable and other lending investments 207,285 337,613 Allowance for loan losses (3,033) (4,769) Total loans receivable and other lending investments, net $ 204,252 $ 332,844 (1) As of June 30, 2022, 100% 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 Specific Three Months Ended June 30, 2022 Loans Loans Securities Allowance Total Allowance for loan losses at beginning of period $ 1,252 $ 674 $ 2,415 $ 591 $ 4,932 Provision for (recovery of) loan losses (1) (391) (224) 23,599 117 23,101 Charge-offs (1) — — (25,000) — (25,000) Allowance for loan losses at end of period $ 861 $ 450 $ 1,014 $ 708 $ 3,033 Three Months Ended June 30, 2021 Allowance for loan losses at beginning of period $ 2,893 $ 1,815 $ 2,685 $ 667 $ 8,060 (Recovery of) provision for loan losses (1) (1,253) (196) (292) (77) (1,818) Allowance for loan losses at end of period $ 1,640 $ 1,619 $ 2,393 $ 590 $ 6,242 (1) During the three months ended June 30, 2022 and 2021, the Company recorded a provision for (recovery of) loan losses of $22.6 million and ( $2.2 ) million, respectively, in its consolidated statements of operations. The provision in 2022 was due primarily to a $25.0 million charge-off on the Company’s held-to-maturity debt security, which is now recorded at its expected repayment proceeds. The recovery in 2021 was d ue primarily to the repayment of loans during the three months ended June 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since March 31, 2021. Of this amount, $0.4 million related to a provision for loan losses for unfunded loan commitments and is recorded as a reduction to "Accounts payable, accrued expenses and other liabilities .” Changes in the Company’s allowance for loan losses were as follows for the six months ended June 30, 2022 and 2021 ($ in thousands): General Allowance Held to Construction Maturity Debt Specific Six Months Ended June 30, 2022 Loans Loans Securities Allowance Total Allowance for loan losses at beginning of period $ 1,213 $ 676 $ 2,304 $ 576 $ 4,769 Provision for (recovery of) loan losses (1) (352) (226) 23,710 132 23,264 Charge-offs (1) — — (25,000) — (25,000) Allowance for loan losses at end of period $ 861 $ 450 $ 1,014 $ 708 $ 3,033 Six Months Ended June 30, 2021 Allowance for loan losses at beginning of period $ 6,541 $ 1,643 $ 3,093 $ 743 $ 12,020 Recovery of loan losses (1) (4,901) (24) (700) (153) (5,778) Allowance for loan losses at end of period $ 1,640 $ 1,619 $ 2,393 $ 590 $ 6,242 (1) During the six months ended June 30, 2022 and 2021, the Company recorded a provision for (recovery of) loan losses of $22.7 million and ($5.8) million, respectively, in its consolidated statements of operations. The provision in 2022 was due primarily to a $25.0 million charge-off on the Company’s held-to-maturity debt security, which is now recorded at its expected repayment proceeds. The recovery in 2021 was d ue primarily to the repayment of loans during the six months ended June 30, 2021 and an improving macroeconomic forecast on commercial real estate markets since December 31, 2020. |
Schedule of recorded investment in loans and associated allowance for loan losses | The Company’s investment in loans and other lending investments and the associated allowance for loan losses were as follows as of June 30, 2022 and December 31, 2021 ($ in thousands): Individually Collectively Evaluated for Evaluated for Impairment (1) Impairment Total As of June 30, 2022 Construction loans (2) $ 60,256 $ 73,299 $ 133,555 Loans (2) — 15,476 15,476 Held-to-maturity debt securities — 35,000 35,000 Available-for-sale debt securities (3) — 23,254 23,254 Less: Allowance for loan losses (708) (2,325) (3,033) Total $ 59,548 $ 144,704 $ 204,252 As of December 31, 2021 Construction loans (2) $ 59,640 $ 125,621 $ 185,261 Loans (2) — 27,422 27,422 Held-to-maturity debt securities — 96,838 96,838 Available-for-sale debt securities (3) — 28,092 28,092 Less: Allowance for loan losses (576) (4,193) (4,769) Total $ 59,064 $ 273,780 $ 332,844 (1) The carrying value of this loan includes an amortized exit fee of $0.8 million and $0.8 million as of June 30, 2022 and December 31, 2021, 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 includes unamortized discounts, premiums, deferred fees and costs totaling net premiums (discounts) of $0.3 million and ($0.2) million as of June 30, 2022 and December 31, 2021, respectively. (3) Available-for-sale debt securities are evaluated for impairment under ASC 326-30 – Financial Instruments-Credit Losses . |
Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating | The Company’s amortized cost basis in performing senior mortgages, corporate/partnership loans and subordinate mortgages, presented by year of origination and by credit quality, as indicated by risk rating, as of June 30, 2022 were as follows ($ in thousands): Year of Origination 2022 2021 2020 2019 2018 Prior to 2018 Total Senior mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — 2,590 2,590 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — 64,323 — 64,323 3.5 — — — — 8,976 — 8,976 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal (1) $ — $ — $ — $ — $ 73,299 $ 2,590 $ 75,889 Subordinate mortgages Risk rating 1.0 $ — $ — $ — $ — $ — $ — $ — 1.5 — — — — — — — 2.0 — — — — — — — 2.5 — — — — — — — 3.0 — — — — — 12,886 12,886 3.5 — — — — — — — 4.0 — — — — — — — 4.5 — — — — — — — 5.0 — — — — — — — Subtotal $ — $ — $ — $ — $ — $ 12,886 $ 12,886 Total $ — $ — $ — $ — $ 73,299 $ 15,476 $ 88,775 (1) As of June 30, 2022, excludes $60.3 million for one loan on non-accrual status. |
Schedule of recorded investment in loans, aged by payment status and presented by class | The Company’s amortized cost basis in loans, aged by payment status and presented by class, was as follows ($ in thousands): Less Than Greater or Equal Than Total Current to 90 Days 90 Days Past Due Total As of June 30, 2022 Senior mortgages $ 75,889 $ — $ 60,256 60,256 $ 136,145 Subordinate mortgages 12,886 — — — 12,886 Total $ 88,775 $ — $ 60,256 $ 60,256 $ 149,031 As of December 31, 2021 Senior mortgages $ 139,968 $ — $ 59,640 59,640 $ 199,608 Corporate/Partnership loans 618 — — — 618 Subordinate mortgages 12,457 — — — 12,457 Total $ 153,043 $ — $ 59,640 $ 59,640 $ 212,683 |
Schedule of recorded investment in impaired loans | As of June 30, 2022 As of December 31, 2021 Unpaid Unpaid Amortized Principal Related Amortized Principal Related Cost Balance Allowance Cost Balance Allowance With an allowance recorded: Senior mortgages (1) $ 60,256 $ 59,505 $ (708) $ 59,640 $ 58,888 $ (576) Total $ 60,256 $ 59,505 $ (708) $ 59,640 $ 58,888 $ (576) (1) The Company has one non-accrual loan as of June 30, 2022 and December 31, 2021 that is considered impaired and included in the table above. The Company did no t record any interest income on impaired loans for the three and six months ended June 30, 2022 and 2021. |
Schedule of other lending investments - securities | Net Net Amortized Unrealized Estimated Carrying Face Value Cost Basis Gain (Loss) Fair Value Value As of June 30, 2022 Available-for-Sale Securities Municipal debt securities $ 23,640 $ 23,640 $ (386) $ 23,254 $ 23,254 Held-to-Maturity Securities Debt securities (1) 35,000 35,000 — 35,000 35,000 Total $ 58,640 $ 58,640 $ (386) $ 58,254 $ 58,254 As of December 31, 2021 Available-for-Sale Securities Municipal debt securities $ 23,855 $ 23,855 $ 4,237 $ 28,092 $ 28,092 Held-to-Maturity Securities Debt securities 100,000 96,838 — 96,838 96,838 Total $ 123,855 $ 120,693 $ 4,237 $ 124,930 $ 124,930 |
Schedule of contractual maturities of securities | As of June 30, 2022, 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 $ 35,000 $ 35,000 $ — $ — After one year through 5 years — — — — After 5 years through 10 years — — — — After 10 years — — 23,640 23,254 Total $ 35,000 $ 35,000 $ 23,640 $ 23,254 |
Other Investments (Tables)
Other Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Equity Method Investments as of For the Three Months Ended For the Six Months Ended June 30, December 31, June 30, June 30, 2022 2021 2022 2021 2022 2021 Real estate equity investments Safehold Inc. ("SAFE") (1) $ 1,405,985 $ 1,168,532 $ 14,720 $ 9,703 $ 31,749 $ 21,115 Ground Lease Plus Fund 65,068 17,630 520 — 1,289 — Other real estate equity investments 38,458 44,349 3,773 (1,461) 7,384 (2,063) Subtotal 1,509,511 1,230,511 19,013 8,242 40,422 19,052 Other strategic investments (2) 47,281 66,770 380 2,856 4,003 3,814 Total $ 1,556,792 $ 1,297,281 $ 19,393 $ 11,098 $ 44,425 $ 22,866 (1) As of June 30, 2022, the Company owned 40.1 million shares of SAFE common stock which, based on the closing price of $35.37 on June 30, 2022, had a market value of $1.4 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 six months ended June 30, 2022 and 2021, equity in earnings includes dilution gains of $0.9 million and $0.5 million, respectively, resulting from SAFE equity offerings. (2) During the six months ended June 30, 2021, 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 – Investments – Equity Securities, the Company remeasured its equity investment at fair value and recognized a mark-to-market gain of $5.1 million in “Other income” in the Company’s consolidated statements of operations. The Company’s equity security was redeemed at its carrying value in the fourth quarter of 2021. |
Schedule of summarized financial information | The following table presents the investee level summarized financial information for the Company’s equity method investment that was significant as of June 30, 2022 ($ in thousands): Revenues Expenses Net Income Attributable to Parent For the Six Months Ended June 30, 2022 SAFE $ 125,247 $ 82,157 $ 47,551 For the Six Months Ended June 30, 2021 SAFE $ 87,720 $ 57,536 $ 31,640 |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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): (1) As of June 30, 2022 December 31, 2021 Other assets (2) $ 19,006 $ 16,040 Operating lease right-of-use assets (3) 18,101 20,437 Restricted cash 5,179 54,395 Other receivables 3,739 5,054 Corporate furniture, fixtures and equipment, net (4) 1,696 1,852 Leasing costs, net (5) 665 818 Intangible assets, net (6) 350 1,209 Deferred financing fees, net 204 629 Deferred expenses and other assets, net $ 48,940 $ 100,434 (1) Certain items have been reclassified to “Real estate and other assets available and held for sale and classified as discontinued operations” (refer to Note 3). (2) 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). (3) 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 June 30, 2022 and 2021, the Company recognized $1.2 million and $1.2 million, respectively, in "General and administrative" and $0.3 million and $0.2 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. During the six months ended June 30, 2022 and 2021, the Company recognized $2.4 million and $2.5 million, respectively, in "General and administrative" and $0.4 million and $0.3 million, respectively, in "Real estate expense" in its consolidated statements of operations relating to operating leases. (4) Accumulated depreciation on corporate furniture, fixtures and equipment was $12.0 million and $14.8 million as of June 30, 2022 and December 31, 2021, respectively. (5) Accumulated amortization of leasing costs was $0.4 million and $1.1 million as of June 30, 2022 and December 31, 2021, respectively. (6) 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 $0.1 million and $10.2 million as of June 30, 2022 and December 31, 2021, respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases for the three and six months ended June 30, 2021 was $0.1 million and $ 0.7 million, respectively. This amount is included in “Depreciation and amortization” in the Company’s consolidated statements of operations. As of June 30, 2022, the weighted average remaining amortization period for the Company’s intangible assets was approximately 5.4 years. |
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 June 30, 2022 December 31, 2021 Accrued expenses $ 65,760 $ 151,810 Accrued interest payable 27,556 31,293 Other liabilities (1) 27,120 30,362 Operating lease liabilities (see table above) 20,355 23,267 Accounts payable, accrued expenses and other liabilities $ 140,791 $ 236,732 (1) As of June 30, 2022 and December 31, 2021, other liabilities includes $20.2 million and $20.1 million, respectively, of deferred income. As of December 31, 2021, other liabilities includes $0.1 million of expected credit losses for unfunded loan commitments. |
Debt Obligations, net (Tables)
Debt Obligations, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The Company’s debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled June 30, 2022 December 31, 2021 Interest Rates Maturity Date Secured credit facilities: Revolving Credit Facility $ — $ — LIBOR + 2.00 % (1) September 2022 Senior Term Loan — 491,875 LIBOR + 2.75 % (2) — Total secured credit facilities — 491,875 Unsecured notes: 3.125% senior convertible notes (3) 93,110 287,500 3.125 % September 2022 4.75% senior notes (4) 767,941 775,000 4.75 % October 2024 4.25% senior notes (5) 550,000 550,000 4.25 % August 2025 5.50% senior notes (6) 346,906 400,000 5.50 % February 2026 Total unsecured notes 1,757,957 2,012,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50 % October 2035 Total debt obligations 1,857,957 2,604,375 Debt discounts and deferred financing costs, net (24,707) (32,201) Total debt obligations, net (7) $ 1,833,250 $ 2,572,174 (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 accrued 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) 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 June 30, 2022 was 72.8554 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $13.73 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. During the three months ended June 30, 2022 and 2021, the Company recognized $0.9 million and $2.2 million, respectively, of contractual interest on the 3.125% Convertible Notes. During the six months ended June 30, 2022 and 2021, the Company recognized $3.2 million and $4.5 million, respectively, of contractual interest on the 3.125% Convertible Notes. (4) The Company can prepay these senior notes without penalty beginning July 1, 2024. (5) The Company can prepay these senior notes without penalty beginning May 1, 2025. (6) The Company can prepay these senior notes without penalty beginning August 15, 2024. (7) The Company capitalized interest relating to development activities of $ 0.4 million and $ 0.2 million during the three months ended June 30, 2022 and 2021, respectively, and $0.7 million and $0.4 million during the six months ended June 30, 2022 and 2021, respectively. |
Schedule of future scheduled maturities of outstanding debt obligations | Unsecured Debt Secured Debt Total 2022 (remaining six months) $ 93,110 $ — $ 93,110 2023 — — — 2024 767,941 — 767,941 2025 550,000 — 550,000 2026 346,906 — 346,906 Thereafter 100,000 — 100,000 Total principal maturities 1,857,957 — 1,857,957 Unamortized discounts and deferred financing costs, net (24,707) — (24,707) Total debt obligations, net $ 1,833,250 $ — $ 1,833,250 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of unfunded commitments | As of June 30, 2022, 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 $ 1,877 $ 4,271 $ 149,502 $ 155,650 Strategic Investments — 3,161 2,249 5,410 Total $ 1,877 $ 7,432 $ 151,751 $ 161,060 |
Schedule of future minimum lease obligations operating leases | 2022 (remaining six months) $ 3,237 2023 6,295 2024 6,178 2025 6,166 2026 142 Thereafter 162 Total undiscounted cash flows 22,180 Present value discount (1) (1,825) Lease liabilities $ 20,355 (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 4.7% and the weighted average remaining lease term is 4.2 years. During the three months ended June 30, 2022 and 2021, the Company made payments of $1.7 million and $0.4 million, respectively, related to its operating leases and during the three months ended June 30, 2021 made payments of $1.4 million related to finance leases with SAFE . During the six months ended June 30, 2022 and 2021, the Company made payments of $3.4 million and $1.2 million, respectively, related to its operating leases and $1.3 million and $2.7 million, respectively, related to finance leases with SAFE . |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative financial instruments on consolidated balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands): (1) Derivative Liabilities Balance Sheet Fair As of June 30, 2022 Location Value Derivatives Designated in Hedging Relationships Interest rate swaps Liabilities associated with real estate held for sale and classified as discontinued operations $ — Total $ — As of December 31, 2021 Derivatives Designated in Hedging Relationships Interest rate swaps Liabilities associated with real estate held for sale and classified as discontinued operations $ 8,395 Total $ 8,395 (1) Over the next 12 months, the Company expects that $2.4 million related to its proportionate share of cash flow hedges held by SAFE will be reclassified from “Accumulated other comprehensive income (loss)” as a decrease to earnings from equity method investments. |
Schedule of derivative financial instruments on consolidated statements of operations and comprehensive income | The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ 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 June 30, 2022 Interest rate swaps Earnings from equity method investments $ 4,382 $ (580) For the Three Months Ended June 30, 2021 Interest rate swaps Net income from discontinued operations $ (764) $ (2,029) Interest rate swaps Earnings from equity method investments — (457) For the Six Months Ended June 30, 2022 Interest rate swaps Earnings from equity method investments $ 7,138 $ (1,201) For the Six Months Ended June 30, 2021 Interest rate swaps Net income from discontinued operations $ 2,573 $ (4,133) Interest rate swaps Earnings from equity method investments 8,638 (691) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 $4.0 million, $3.1 million and $4.7 million on its Series D, G and I Cumulative Redeemable Preferred Stock during both the six months ended June 30, 2022 and 2021. The character of the 2021 dividends was 100% capital gain distribution, of which 18.31% represented unrecaptured section 1250 gain. (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 June 30, 2022 December 31, 2021 Unrealized (losses) gains on available-for-sale securities $ (386) $ 4,237 Unrealized losses on cash flow hedges (17,486) (25,824) Accumulated other comprehensive loss $ (17,872) $ (21,587) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022. iPIP Investment Pool 2019-2020 2021-2022 Points at beginning of period 95.20 84.75 Granted — 7.95 Forfeited — (0.35) Points at end of period 95.20 92.35 The following is a summary of the status of the Company’s liability-classified iPIP plans and changes during the six months ended June 30, 2022. iPIP Investment Pool 2013 ‑ 2014 2015 ‑ 2016 (1) 2017 ‑ 2018 Points at beginning of period 80.17 70.40 75.34 Granted — — — Points at end of period 80.17 70.40 75.34 |
Schedule of restricted stock units activity | Nonvested at beginning of period 754 Granted 214 Vested (283) Forfeited (13) Nonvested at end of period 672 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Net loss from continuing operations $ (132,494) $ (36,731) $ (134,382) $ (51,227) Net (income) loss from continuing operations attributable to noncontrolling interests (117) 20 (99) 65 Preferred dividends (5,874) (5,874) (11,748) (11,748) Net loss from continuing operations and allocable to common shareholders for basic and diluted earnings per common share $ (138,485) $ (42,585) $ (146,229) $ (62,910) |
Schedule of earnings per share allocable to common shares | For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Earnings allocable to common shares: Numerator for basic and diluted earnings per share: Net loss from continuing operations and allocable to common shareholders $ (138,485) $ (42,585) $ (146,229) $ (62,910) Net income from discontinued operations — 25,315 797,688 47,800 Net (income) from discontinued operations attributable to noncontrolling interests — (2,273) (179,089) (4,838) Net income (loss) allocable to common shareholders $ (138,485) $ (19,543) $ 472,370 $ (19,948) Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic and diluted earnings per common share 81,442 72,872 75,274 73,374 Basic and diluted earnings per common share: (1) Net loss from continuing operations and allocable to common shareholders $ (1.70) $ (0.59) $ (1.94) $ (0.86) Net income from discontinued operations and allocable to common shareholders — 0.32 8.22 0.59 Net income (loss) allocable to common shareholders $ (1.70) $ (0.27) $ 6.28 $ (0.27) (1) For the three and six months ended June 30, 2022 and 2021, the effect of certain of the Company’s restricted stock awards were anti-dilutive due to the Company having a net loss from continuing operations and allocable to common shareholders for the period. For the three months ended June 30, 2022 and 2021, 1,787,708 and 4,700,805 shares, respectively, of the 3.125% Convertible Notes were antidilutive based upon the conversion price for such periods. For the six months ended June 30, 2022 and 2021, 5,308,491 and 3,797,296 shares, respectively, of the 3.125% Convertible Notes were antidilutive based upon the conversion price for such periods . |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 Recurring basis: Available-for-sale securities (1) $ 23,254 $ — $ — $ 23,254 Non-recurring basis: Real estate, net (2) 811 — — 811 Held-to-maturity securities (3) 35,000 — — 35,000 As of December 31, 2021 Recurring basis: Derivative liabilities (1) $ 8,395 $ — $ 8,395 $ — Available-for-sale securities (1) 28,092 — — 28,092 (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 $1.8 million impairment on an operating property with an estimated fair value of $0.8 million. The estimated fair value is based on the cash flows expected to be received. (3) In the second quarter 2022, the Company received a $40.0 million repayment on a held-to-maturity security. The Company then recorded a $25.0 million charge-off (refer to Note 7) on the held-to-maturity security to record the security at the expected future cash flows to be received. |
Summary of changes in Level 3 available-for-sale securities reported at fair value | The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the six months ended June 30, 2022 and 2021 ($ in thousands): 2022 2021 Beginning balance $ 28,092 $ 25,274 Purchases — 3,375 Repayments (215) (201) Unrealized losses recorded in other comprehensive income (4,623) (374) Ending balance $ 23,254 $ 28,074 |
Schedule of carrying value and fair value of financial instruments | As of June 30, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Net investment in leases (refer to Note 5) (1) $ 32 $ 32 $ 43 $ 43 Loans receivable and other lending investments, net (1) 204 204 333 345 Loans receivable held for sale (1) — — 43 43 Cash and cash equivalents (2) 1,401 1,401 340 340 Restricted cash (2) 5 5 54 54 Liabilities Debt obligations, net (1)(3) Level 1 1,734 1,717 2,473 2,799 Level 3 99 101 99 104 Total debt obligations, net 1,833 1,818 2,572 2,903 (1) The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loans receivable held for sale and certain debt obligations 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 June 30, 2022 and December 31, 2021, t he fair value of the Company’s unsecured notes is classified as Level 1 in the fair value hierarchy. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s 3.125% Senior Convertible Notes was $99.6 million and $527.5 million, respectively (refer to Note 10). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of financial measures for each segment based on which performance is evaluated | The Company evaluates performance-based on the following financial measures for each segment. The Company’s segment information is as follows ($ in thousands): Net Real Estate Operating Land and Corporate/ Company Lease Finance Properties Development Other (1) Total Three Months Ended June 30, 2022 Operating lease income $ — $ — $ 3,082 $ 100 $ — $ 3,182 Interest income — 4,221 — — — 4,221 Interest income from sales-type leases 376 — — — — 376 Other income 5,219 26 7,592 1,318 1,726 15,881 Land development revenue — — — 24,403 — 24,403 Earnings (losses) from equity method investments 15,240 769 3,673 100 (389) 19,393 Income from sales of real estate — — — — — — Total revenue and other earnings 20,835 5,016 14,347 25,921 1,337 67,456 Real estate expense (461) — (8,261) (4,294) — (13,016) Land development cost of sales — — — (24,095) — (24,095) Other expense (521) (40) — (238) (724) (1,523) Allocated interest expense (13,162) (2,196) (1,139) (2,745) (4,907) (24,149) Allocated general and administrative (2) (3,838) (1,226) (625) (2,114) (4,941) (12,744) Segment profit (loss) (3) $ 2,853 $ 1,554 $ 4,322 $ (7,565) $ (9,235) $ (8,071) Other significant items: Provision for loan losses $ — $ 22,578 $ — $ — $ — $ 22,578 Provision for losses on net investment in leases 99 — — — — 99 Impairment of assets — — 1,750 — 18 1,768 Depreciation and amortization — — 969 227 142 1,338 Capitalized expenditures — — 320 5,813 — 6,133 Three Months Ended June 30, 2021 Operating lease income $ — $ — $ 4,703 $ 89 $ — $ 4,792 Interest income 299 7,785 — — — 8,084 Interest income from sales-type leases 157 — — — — 157 Other income 3,529 52 3,953 1,315 54 8,903 Land development revenue — — — 32,318 — 32,318 Earnings (losses) from equity method investments 9,703 755 (2,935) 1,474 2,101 11,098 Income from sales of real estate — — 96 — — 96 Total revenue and other earnings 13,688 8,592 5,817 35,196 2,155 65,448 Real estate expense (12) — (6,256) (5,049) — (11,317) Land development cost of sales — — — (30,803) — (30,803) Other expense — (87) — — (124) (211) Allocated interest expense (14,566) (3,828) (2,030) (3,864) (4,353) (28,641) Allocated general and administrative (2) (6,120) (1,242) (664) (2,367) (5,210) (15,603) Segment profit (loss) (3) (7,010) $ 3,435 $ (3,133) $ (6,887) $ (7,532) $ (21,127) Other significant non-cash items: Provision for (recovery of) loan losses $ — $ (2,158) $ — $ — $ — $ (2,158) Provision for losses on net investment in leases 779 — — — — 779 Depreciation and amortization 1 — 1,221 228 123 1,573 Capitalized expenditures — — 432 4,571 — 5,003 Six Months Ended June 30, 2022 Operating lease income $ — $ — $ 6,056 $ 235 $ — $ 6,291 Interest income 75 9,094 — — — 9,169 Interest income from sales-type leases 732 — — — — 732 Other income 9,680 37 10,255 2,635 1,914 24,521 Land development revenue — — — 39,303 — 39,303 Earnings from equity method investments 33,038 1,783 3,718 3,665 2,221 44,425 Income from sales of real estate 492 — — — — 492 Total revenue and other earnings 44,017 10,914 20,029 45,838 4,135 124,933 Real estate expense (657) — (14,133) (8,343) — (23,133) Land development cost of sales — — — (38,591) — (38,591) Other expense (992) (159) — (320) (982) (2,453) Allocated interest expense (29,377) (5,336) (2,480) (6,988) (9,211) (53,392) Allocated general and administrative (3) (8,854) (2,350) (1,103) (4,369) (9,870) (26,546) Segment profit (loss) (4) $ 4,137 $ 3,069 $ 2,313 $ (12,773) $ (15,928) $ (19,182) Other significant items: Provision for loan losses $ — $ 22,713 $ — $ — $ — $ 22,713 Provision for losses on net investment in leases 380 — — — — 380 Impairment of assets — — 1,750 — 18 1,768 Depreciation and amortization — — 1,955 456 284 2,695 Capitalized expenditures — — 540 10,524 — 11,064 Six Months Ended June 30, 2021 Operating lease income $ — $ — $ 9,540 $ 183 $ — $ 9,723 Interest income 317 17,557 — — — 17,874 Interest income from sales-type leases 157 — — — — 157 Other income 7,007 151 6,291 2,704 5,764 21,917 Land development revenue — — — 64,567 — 64,567 Earnings (losses) from equity method investments 21,115 1,220 (6,682) 4,619 2,594 22,866 Income from sales of real estate — — 708 — — 708 Total revenue and other earnings 28,596 18,928 9,857 72,073 8,358 137,812 Real estate expense (468) — (10,055) (9,512) — (20,035) Land development cost of sales — — — (60,126) — (60,126) Other expense — (153) — — (310) (463) Allocated interest expense (28,891) (8,406) (4,073) (7,802) (8,278) (57,450) Allocated general and administrative (3) (12,057) (2,701) (1,324) (4,795) (10,657) (31,534) Segment profit (loss) (4) $ (12,820) $ 7,668 $ (5,595) $ (10,162) $ (10,887) $ (31,796) Other significant items: Recovery of loan losses $ — $ (5,800) $ — $ — $ — $ (5,800) Provision for losses on net investment in leases 780 — — — — 780 Impairment of assets — — 257 — — 257 Depreciation and amortization — — 3,208 446 320 3,974 Capitalized expenditures — — 489 9,311 — 9,800 As of June 30, 2022 Real estate, net $ — $ — $ 90,231 $ — $ — $ 90,231 Real estate available and held for sale — — 1,970 — — 1,970 Total real estate — — 92,201 — — 92,201 Real estate and other assets available and held for sale and classified as discontinued operations (1) 11,518 — — — — 11,518 Net investment in leases 31,999 — — — — 31,999 Land and development, net — — — 259,718 — 259,718 Loans receivable and other lending investments, net — 204,252 — — — 204,252 Loan receivable held for sale — — — — — — Other investments 1,471,053 23,219 38,168 290 24,062 1,556,792 Total portfolio assets 1,514,570 227,471 130,369 260,008 24,062 2,156,480 Cash and other assets 1,454,140 Total assets $ 3,610,620 As of December 31, 2021 Real estate, net $ — $ — $ 92,150 $ — $ — $ 92,150 Real estate available and held for sale — — 301 — — 301 Total real estate — — 92,451 — — 92,451 Real estate and other assets available and held for sale and classified as discontinued operations (1) 2,299,711 — — — — 2,299,711 Net investment in leases 43,215 — — — — 43,215 Land and development, net — — — 286,810 — 286,810 Loans receivable and other lending investments, net — 332,844 — — — 332,844 Loan receivable held for sale 43,215 — — — — 43,215 Other investments 1,186,162 48,862 43,252 1,096 17,909 1,297,281 Total portfolio assets $ 3,572,303 $ 381,706 $ 135,703 $ 287,906 $ 17,909 4,395,527 Cash and other assets 445,007 Total assets $ 4,840,534 (1) Refer to Note 3 – Net Lease Sale and Discontinued Operations. (2) 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. (3) General and administrative excludes stock-based compensation of ($ 17.9) million and $ 14.8 million for the three months ended June 30, 2022 and 2021, respectively, and ($30.4) million and $20.3 million for the six months ended June 30, 2022 and 2021, respectively. (4) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Segment loss $ (8,071) $ (21,127) $ (19,182) $ (31,796) Less: (Provision for) recovery of loan losses (22,578) 2,158 (22,713) 5,800 Less: Provision for losses on net investment in leases (99) (779) (380) (780) Less: Impairment of assets (1,768) — (1,768) (257) Less: Stock-based compensation income (expense) 17,923 (14,791) 30,350 (20,299) Less: Depreciation and amortization (1,338) (1,573) (2,695) (3,974) Less: Income tax (expense) benefit — (619) (3) 79 Less: Loss on early extinguishment of debt, net (116,563) — (117,991) — Less: Net income from discontinued operations — 25,315 797,688 47,800 Net income (loss) $ (132,494) $ (11,416) $ 663,306 $ (3,427) |
Schedule of reconciliation of segment profit to income (loss) | For the Three Months Ended June 30, For the Six Months Ended June 30, 2022 2021 2022 2021 Segment loss $ (8,071) $ (21,127) $ (19,182) $ (31,796) Less: (Provision for) recovery of loan losses (22,578) 2,158 (22,713) 5,800 Less: Provision for losses on net investment in leases (99) (779) (380) (780) Less: Impairment of assets (1,768) — (1,768) (257) Less: Stock-based compensation income (expense) 17,923 (14,791) 30,350 (20,299) Less: Depreciation and amortization (1,338) (1,573) (2,695) (3,974) Less: Income tax (expense) benefit — (619) (3) 79 Less: Loss on early extinguishment of debt, net (116,563) — (117,991) — Less: Net income from discontinued operations — 25,315 797,688 47,800 Net income (loss) $ (132,494) $ (11,416) $ 663,306 $ (3,427) |
Basis of Presentation and Pri_3
Basis of Presentation and Principles of Consolidation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |||
Real estate | ||||||
Real estate, at cost | [1] | $ 111,909 | $ 113,510 | |||
Less: accumulated depreciation | [1] | (21,678) | (21,360) | |||
Real estate, net | [1] | 90,231 | 92,150 | |||
Land and development, net | [1] | 259,718 | 286,810 | |||
Cash and cash equivalents | 1,400,658 | [1] | 339,601 | [1] | $ 154,941 | |
Accrued interest and operating lease income receivable, net | [1] | 1,601 | 1,813 | |||
Deferred operating lease income receivable, net | [1] | 2,941 | 3,159 | |||
Deferred expenses and other assets, net | [1] | 48,940 | 100,434 | |||
Total assets | [1] | 3,610,620 | 4,840,534 | |||
LIABILITIES | ||||||
Accounts payable, accrued expenses and other liabilities | [1] | 140,791 | 236,732 | |||
Liabilities associated with real estate held for sale and classified as discontinued operations | 5,715 | 968,419 | ||||
Debt obligations, net | [1] | 1,833,250 | 2,572,174 | |||
Total liabilities | [1] | 1,979,756 | 3,777,328 | |||
Carrying value of investment | [1] | 1,556,792 | 1,297,281 | |||
Consolidated VIEs | ||||||
Real estate | ||||||
Real estate, at cost | 93,835 | 93,477 | ||||
Less: accumulated depreciation | (16,518) | (14,987) | ||||
Real estate, net | 77,317 | 78,490 | ||||
Real estate and other assets available and held for sale and classified as discontinued operations. | 198 | 886,845 | ||||
Land and development, net | 153,044 | 176,833 | ||||
Cash and cash equivalents | 21,318 | 23,908 | ||||
Deferred operating lease income receivable, net | 7 | 3 | ||||
Deferred expenses and other assets, net | 5,061 | 5,001 | ||||
Total assets | 256,945 | 1,171,081 | ||||
LIABILITIES | ||||||
Accounts payable, accrued expenses and other liabilities | 26,151 | 24,744 | ||||
Liabilities associated with real estate held for sale and classified as discontinued operations | 291 | 493,739 | ||||
Total liabilities | 26,442 | $ 518,483 | ||||
Unconsolidated VIEs | ||||||
LIABILITIES | ||||||
Carrying value of investment | 57,500 | |||||
Variable interest entity unfunded commitment | $ 2,200 | |||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Net Lease Sale) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2022 USD ($) item lease property | Jun. 30, 2021 lease | Mar. 31, 2022 USD ($) property | Jun. 30, 2022 USD ($) property | |
Discontinued operations | ||||
Number of ground leases entered into | lease | 2 | |||
Third Party Buyer - Net Lease Properties | ||||
Discontinued operations | ||||
Number of properties sold | property | 3 | |||
Consideration for sale of properties | $ 122 | |||
Number of ground leases entered into | lease | 3 | |||
Net Lease Venture | ||||
Discontinued operations | ||||
Equity interest in joint ventures | 51.90% | 51.90% | ||
Net Lease Venture II | ||||
Discontinued operations | ||||
Equity interest in joint ventures | 51.90% | 51.90% | ||
Discontinued Operations, Disposed of by Sale | Net Lease Sale | ||||
Discontinued operations | ||||
Aggregate sales price | $ 3,070 | $ 3,070 | ||
Recognized gain on disposal | $ 663.7 | |||
Aggregate square footage of net lease assets | 18.3 | 18.3 | ||
Number of joint ventures with properties included in Net Lease Sale | item | 2 | |||
Mortgage indebtedness on lease assets | $ 702 | $ 702 | ||
Amount of net cash consideration retained after settlement of obligations | $ 1,200 | 1,200 | ||
Discontinued Operations, Disposed of by Sale | Two Net Lease Properties | ||||
Discontinued operations | ||||
Aggregate sales price | $ 33.9 | |||
Recognized gain on disposal | $ 23.9 | |||
Number of properties sold | property | 2 | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Net Lease Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Discontinued operations | |||||
Noncontrolling interests | [1] | $ 16,287 | $ 211,910 | ||
Net Lease Venture | External Partner | |||||
Discontinued operations | |||||
Ownership Percentage | 47.50% | ||||
Net Lease Venture II | Net income from discontinued operations | |||||
Discontinued operations | |||||
Management fee revenue from related party | $ 400 | $ 400 | $ 800 | ||
Senior executives | Net Lease Venture | |||||
Discontinued operations | |||||
Ownership Percentage | 0.60% | ||||
Percentage of incentive fees | 50% | ||||
Discontinued Operations, Disposed of by Sale | Net Lease Business Segment | |||||
Discontinued operations | |||||
Other investments | $ 1,972 | ||||
Discontinued Operations, Disposed of by Sale | Net Lease Sale | Net Lease Venture | |||||
Discontinued operations | |||||
Noncontrolling interests | 3,200 | ||||
Discontinued Operations, Disposed of by Sale | Net Lease Sale | Net Lease Venture II | |||||
Discontinued operations | |||||
Other investments | $ 2,000 | ||||
Discontinued Operations - Held for Sale | Net Lease Business Segment | |||||
Discontinued operations | |||||
Other investments | $ 103,229 | ||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Discontinued Operations - Balance Sheet) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Total real estate and other assets available and held for sale and classified as discontinued operations | $ 11,518 | $ 2,299,711 |
Liabilities | ||
Total liabilities associated with real estate held for sale and classified as discontinued operations | 5,715 | 968,419 |
Discontinued Operations, Disposed of by Sale | Net Lease Business Segment | ||
Assets | ||
Other investments | 1,972 | |
Accrued interest and operating lease income receivable, net | 548 | |
Deferred expenses and other assets, net | 8,998 | |
Total real estate and other assets available and held for sale and classified as discontinued operations | 11,518 | |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 5,715 | |
Total liabilities associated with real estate held for sale and classified as discontinued operations | $ 5,715 | |
Discontinued Operations - Held for Sale | Net Lease Business Segment | ||
Assets | ||
Real estate, at cost | 1,537,655 | |
Less: accumulated depreciation | (271,183) | |
Total real estate, net | 1,266,472 | |
Net investment in leases ($10,871 of allowances as of December 31, 2020) | 486,389 | |
Loan receivable held for sale | 48,675 | |
Other investments | 103,229 | |
Finance lease right of use assets | 150,099 | |
Accrued interest and operating lease income receivable, net | 2,997 | |
Deferred operating lease income receivable, net | 63,156 | |
Deferred expenses and other assets, net | 178,694 | |
Total real estate and other assets available and held for sale and classified as discontinued operations | 2,299,711 | |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 92,865 | |
Finance lease liabilities | 161,258 | |
Debt obligations, net | 714,296 | |
Total liabilities associated with real estate held for sale and classified as discontinued operations | $ 968,419 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Discontinued Operations - Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income from discontinued operations | |||
Impairment of assets | $ 1,500 | $ 1,500 | |
Net income from discontinued operations | $ 25,315 | 797,688 | 47,800 |
Net (income) from discontinued operations attributable to noncontrolling interests | (2,273) | (179,089) | (4,838) |
Discontinued Operations, Disposed of by Sale | Net Lease Business Segment | |||
Net income from discontinued operations | |||
Operating lease income | 35,596 | ||
Interest income | 885 | ||
Interest income from sales-type leases | 8,803 | ||
Other income | 4,292 | ||
Total revenues | 49,576 | ||
Interest expense | 7,484 | ||
Real estate expense | 5,072 | ||
Impairment of assets | 1,492 | ||
Other expense | (5,669) | ||
Total costs and expenses | 8,379 | ||
Income from sales of real estate | 683,738 | ||
Income from discontinued operations before earnings from equity method investments and other items | 724,935 | ||
Earnings from equity method investments | 127,129 | ||
Loss on early extinguishment of debt, net | (41,408) | ||
Net income from discontinued operations before income taxes | 810,656 | ||
Income tax expense | (12,968) | ||
Net income from discontinued operations | 797,688 | ||
Net (income) from discontinued operations attributable to noncontrolling interests | (179,089) | ||
Net income from discontinued operations attributable to iStar Inc. | 618,599 | ||
Discontinued Operations, Disposed of by Sale | Net Lease Business Segment | SAFE | |||
Net income from discontinued operations | |||
Interest expense | $ 1,300 | ||
Discontinued Operations - Held for Sale | Net Lease Business Segment | |||
Net income from discontinued operations | |||
Operating lease income | 40,752 | 83,265 | |
Interest income | 889 | 1,749 | |
Interest income from sales-type leases | 8,532 | 17,159 | |
Other income | 1,161 | 2,436 | |
Total revenues | 51,334 | 104,609 | |
Interest expense | 10,776 | 21,530 | |
Real estate expense | 6,972 | 15,148 | |
Depreciation and amortization | 13,087 | 26,141 | |
Recovery of loan losses | (105) | (257) | |
Recovery of losses on net investment in leases | (1,044) | (2,646) | |
Impairment of assets | 1,528 | ||
Total costs and expenses | 29,686 | 61,444 | |
Income from sales of real estate | 2,114 | 2,114 | |
Income from discontinued operations before earnings from equity method investments and other items | 23,762 | 45,279 | |
Earnings from equity method investments | 1,599 | 2,600 | |
Net income from discontinued operations before income taxes | 25,361 | 47,879 | |
Income tax expense | (46) | (79) | |
Net income from discontinued operations | 25,315 | 47,800 | |
Net (income) from discontinued operations attributable to noncontrolling interests | (2,273) | (4,838) | |
Net income from discontinued operations attributable to iStar Inc. | 23,042 | 42,962 | |
Discontinued Operations - Held for Sale | Net Lease Business Segment | SAFE | |||
Net income from discontinued operations | |||
Interest expense | 2,100 | 4,100 | |
Depreciation and amortization | $ 400 | $ 700 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Discontinued Operations - Cash Flows) (Details) - Net Lease Business Segment - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Discontinued Operations, Disposed of by Sale | ||
Cash flows from discontinued operations | ||
Cash flows provided by operating activities | $ 119,950 | |
Cash flows provided by investing activities | $ 2,660,531 | |
Discontinued Operations - Held for Sale | ||
Cash flows from discontinued operations | ||
Cash flows provided by operating activities | $ 43,934 | |
Cash flows provided by investing activities | $ 4,845 |
Real Estate (Schedule of Real E
Real Estate (Schedule of Real Estate Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | |||
Less: accumulated depreciation | [1] | $ (21,678) | $ (21,360) |
Real estate, net | [1] | 90,231 | 92,150 |
Real estate available and held for sale | [1] | 1,970 | 301 |
Total real estate | [1] | 92,201 | 92,451 |
Operating Properties | |||
Real Estate Properties [Line Items] | |||
Land, at cost | 7,125 | 6,831 | |
Buildings and improvements, at cost | 104,784 | 106,679 | |
Less: accumulated depreciation | (21,678) | (21,360) | |
Real estate, net | 90,231 | 92,150 | |
Real estate available and held for sale | 1,970 | 301 | |
Total real estate | 92,201 | 92,451 | |
Residential Operating Properties | |||
Real Estate Properties [Line Items] | |||
Real estate available and held for sale | $ 2,000 | $ 300 | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Real Estate (Dispositions) (Det
Real Estate (Dispositions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Abstract] | ||||
Income from sales of real estate | $ 96 | $ 492 | $ 708 | |
Impairment of assets | $ 1,768 | $ 0 | $ 1,768 | $ 257 |
Real Estate (Impairments) (Deta
Real Estate (Impairments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Real Estate Properties [Line Items] | ||
Impairment of real estate | $ 1.8 | |
Operating Properties | ||
Real Estate Properties [Line Items] | ||
Impairment of real estate | $ 1.8 | $ 1.8 |
Real Estate (Tenant Reimburseme
Real Estate (Tenant Reimbursements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Abstract] | ||||
Tenant expense reimbursements | $ 0.7 | $ 0.8 | $ 1.4 | $ 1.4 |
Real Estate (Allowance for Doub
Real Estate (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate Tenant Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts receivable | $ 0.1 | $ 0.1 |
Real Estate (Future Minimum Ope
Real Estate (Future Minimum Operating Lease Payments) (Details) - Operating Properties $ in Thousands | Jun. 30, 2022 USD ($) |
Real Estate Properties [Line Items] | |
2022 (remaining six months) | $ 3,236 |
2023 | 6,322 |
2024 | 6,206 |
2025 | 5,600 |
2026 | 5,125 |
Thereafter | $ 4,361 |
Net Investment in Leases (Narra
Net Investment in Leases (Narrative) (Details) $ in Thousands | 1 Months Ended | |||
Jun. 30, 2021 USD ($) lease | Jun. 30, 2022 USD ($) | Jan. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
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 | |||
Number of properties acquired from lessee | lease | 2 | |||
Purchase price for properties acquired | $ 42,000 | |||
Number of ground leases entered into | lease | 2 | |||
Loan receivable held for sale | $ 43,215 | |||
Net investment in leases | $ 31,999 | $ 43,215 | ||
Ground Lease Plus Fund | ||||
Net investment in leases [Line Items] | ||||
Equity interest | 53% | |||
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 | $ 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 | $ 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 | |||
Land Parcel Three | ||||
Net investment in leases [Line Items] | ||||
Purchase price for properties acquired | $ 36,000 | |||
Funding for land purchase commitment | $ 32,000 |
Net Investment in Leases - Net
Net Investment in Leases - Net Investment in Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||||||
Total undiscounted cash flows | $ 356,302 | $ 524,712 | ||||
Unguaranteed estimated residual value | 21,750 | 42,000 | ||||
Present value discount | (345,673) | (523,497) | ||||
Allowance for losses on net investment in leases | 380 | $ 9,005 | $ 281 | 0 | $ 9,270 | $ 10,871 |
Net investment in leases | 31,999 | $ 43,215 | ||||
Impairment of net lease assets | $ 1,500 | $ 1,500 |
Net Investment in Leases (Futur
Net Investment in Leases (Future Minimum Lease Payments to be Collected Under Sales-Type Leases) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Amount | |
2022 (remaining six months) | $ 520 |
2023 | 1,056 |
2024 | 1,204 |
2025 | 1,240 |
2026 | 1,264 |
Thereafter | 351,018 |
Total undiscounted cash flows | $ 356,302 |
Net Investment in Leases - Allo
Net Investment in Leases - Allowance for Losses on Net Investment in Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 281 | $ 9,270 | $ 0 | $ 10,871 |
Provision for (recovery of) losses on net investment in leases | 99 | (265) | 380 | (1,866) |
Allowance for losses on net investment in leases at end of period | $ 380 | $ 9,005 | $ 380 | $ 9,005 |
Land and Development (Schedule
Land and Development (Schedule of Land and Development Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Real Estate Properties [Line Items] | |||
Total land and development, net | [1] | $ 259,718 | $ 286,810 |
Land | |||
Real Estate Properties [Line Items] | |||
Land and land development, at cost | 270,978 | 297,621 | |
Less: accumulated depreciation | (11,260) | (10,811) | |
Total land and development, net | $ 259,718 | $ 286,810 | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Land and Development (Dispositi
Land and Development (Dispositions) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate Properties [Line Items] | ||||
Revenues | $ 48,063 | $ 54,254 | $ 80,016 | $ 114,238 |
Impairment of assets | 1,768 | 0 | 1,768 | 257 |
Land development revenue | ||||
Real Estate Properties [Line Items] | ||||
Revenues | 24,403 | 32,318 | 39,303 | 64,567 |
Cost of sales expense | $ 24,095 | $ 30,803 | $ 38,591 | $ 60,126 |
Loans Receivable and Other Le_3
Loans Receivable and Other Lending Investments, net (Schedule of Loans Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | $ 58,254 | $ 124,930 | |||||
Total gross carrying value of loans receivable and other lending investments | 207,285 | 337,613 | |||||
Allowance for loan losses | (3,033) | (4,769) | |||||
Total loans receivable and other lending investments, net | [1] | 204,252 | 332,844 | ||||
Held-to-maturity debt securities | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | 35,000 | 96,838 | |||||
Available-for-sale debt securities | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Other lending investments | 23,254 | 28,092 | |||||
Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 149,031 | 212,683 | |||||
Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 136,145 | 199,608 | |||||
Commercial Portfolio Segment | Corporate/Partnership loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 618 | ||||||
Commercial Portfolio Segment | Subordinate mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 12,886 | 12,457 | |||||
Construction Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 133,555 | 185,261 | |||||
Allowance for loan losses | (861) | $ (1,252) | (1,213) | $ (1,640) | $ (2,893) | $ (6,541) | |
Construction Loans | Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 133,555 | 185,261 | |||||
Construction Loans | Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 133,555 | 184,643 | |||||
Construction Loans | Commercial Portfolio Segment | Corporate/Partnership loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 0 | 618 | |||||
Completed construction | Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Percentage of construction loans | 100% | ||||||
Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 15,476 | 27,422 | |||||
Allowance for loan losses | (450) | $ (674) | (676) | $ (1,619) | $ (1,815) | $ (1,643) | |
Loans | Commercial Portfolio Segment | Senior mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | 2,590 | 14,965 | |||||
Loans | Commercial Portfolio Segment | Subordinate mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Subtotal - gross carrying value of loans | $ 12,886 | $ 12,457 | |||||
[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 | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | $ 4,769 | |||||
Provision for (recovery of) loan losses | $ 22,578 | $ (2,158) | 22,713 | $ (5,800) | ||
Allowance for loan losses at end of period | 3,033 | 3,033 | ||||
Held to Maturity Debt Securities | ||||||
Allowance for loan losses at beginning of period | 2,415 | 2,685 | $ 3,093 | 2,304 | 3,093 | |
(Recovery of) Provision for loan losses | 23,599 | (292) | 23,710 | (700) | ||
Charge offs | (25,000) | (25,000) | ||||
Allowance for loan losses at end of period | 1,014 | 2,393 | 2,685 | 1,014 | 2,393 | |
Total | ||||||
Allowance for loan losses at beginning of period | 4,932 | 8,060 | 12,020 | 4,769 | 12,020 | |
(Recovery of) Provision for loan losses | 23,101 | (1,818) | 23,264 | (5,778) | ||
Charge offs | (25,000) | (25,000) | ||||
Allowance for loan losses at end of period | 3,033 | 6,242 | 8,060 | 3,033 | 6,242 | |
Increase to reserves for loan losses | $ 100 | |||||
Provision for (recovery of) loan losses | 22,600 | (2,200) | 22,700 | (5,800) | ||
Accounts Payable, Accrued Expenses and Other Liabilities | ||||||
Total | ||||||
Provision for ( recovery of) unfunded commitments | (400) | |||||
Construction Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 1,252 | 2,893 | 6,541 | 1,213 | 6,541 | |
Provision for (recovery of) loan losses | (391) | (1,253) | (352) | (4,901) | ||
Allowance for loan losses at end of period | 861 | 1,640 | 2,893 | 861 | 1,640 | |
Loans | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 674 | 1,815 | 1,643 | 676 | 1,643 | |
Provision for (recovery of) loan losses | (224) | (196) | (226) | (24) | ||
Allowance for loan losses at end of period | 450 | 1,619 | 1,815 | 450 | 1,619 | |
Specific receivables | ||||||
Financing Receivables | ||||||
Allowance for loan losses at beginning of period | 591 | 667 | 743 | 576 | 743 | |
Provision for (recovery of) loan losses | 117 | (77) | 132 | (153) | ||
Allowance for loan losses at end of period | $ 708 | $ 590 | $ 667 | $ 708 | $ 590 |
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 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Other Lending Investments | |||||||
Total | $ 58,254 | $ 124,930 | |||||
Less: Allowance for loan losses | |||||||
Individually evaluated for impairment | (708) | (576) | |||||
Collectively evaluated for impairment | (2,325) | (4,193) | |||||
Total | (3,033) | (4,769) | |||||
Individually Evaluated for Impairment | 59,548 | 59,064 | |||||
Collectively Evaluated for Impairment | 144,704 | 273,780 | |||||
Total loans receivable and other lending investments, net | [1] | 204,252 | 332,844 | ||||
Net premiums (discounts) | 800 | 800 | |||||
Held-to-maturity debt securities | |||||||
Other Lending Investments | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 35,000 | 96,838 | |||||
Total | 35,000 | 96,838 | |||||
Available-for-sale debt securities | |||||||
Other Lending Investments | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 23,254 | 28,092 | |||||
Total | 23,254 | 28,092 | |||||
Construction Loans | |||||||
Loans | |||||||
Individually Evaluated for Impairment | 60,256 | 59,640 | |||||
Collectively Evaluated for Impairment | 73,299 | 125,621 | |||||
Total | 133,555 | 185,261 | |||||
Less: Allowance for loan losses | |||||||
Total | (861) | $ (1,252) | (1,213) | $ (1,640) | $ (2,893) | $ (6,541) | |
Loans | |||||||
Loans | |||||||
Individually Evaluated for Impairment | 0 | 0 | |||||
Collectively Evaluated for Impairment | 15,476 | 27,422 | |||||
Total | 15,476 | 27,422 | |||||
Less: Allowance for loan losses | |||||||
Total | (450) | $ (674) | (676) | $ (1,619) | $ (1,815) | $ (1,643) | |
Net premiums (discounts) | $ 300 | $ (200) | |||||
[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 | Jun. 30, 2022 USD ($) loan | Feb. 28, 2022 loan | Dec. 31, 2021 USD ($) 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 | 1 |
Commercial Portfolio Segment | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
Total | $ 149,031 | $ 212,683 | |
Commercial Portfolio Segment | Senior mortgages | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
Total | 136,145 | 199,608 | |
Loan on non-accrual status | 60,300 | ||
Commercial Portfolio Segment | Corporate/Partnership loans | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
Total | 618 | ||
Commercial Portfolio Segment | Subordinate mortgages | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
Total | 12,886 | $ 12,457 | |
Commercial Portfolio Segment | Performing Financial Instruments | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 73,299 | ||
Prior to 2018 | 15,476 | ||
Total | 88,775 | ||
Commercial Portfolio Segment | Performing Financial Instruments | Senior mortgages | |||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 73,299 | ||
Prior to 2018 | 2,590 | ||
Total | 75,889 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 2,590 | ||
Total | 2,590 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 0 | ||
Total | 0 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 64,323 | ||
Prior to 2018 | 0 | ||
Total | 64,323 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 8,976 | ||
Prior to 2018 | 0 | ||
Total | 8,976 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 12,886 | ||
Total | 12,886 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 12,886 | ||
Total | 12,886 | ||
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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | |||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior to 2018 | 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 | Jun. 30, 2022 | Dec. 31, 2021 |
Recorded investment in loans, aged by payment status and presented by class | ||
Total | $ 149,031 | $ 212,683 |
Past Due | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 60,256 | 59,640 |
Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 60,256 | 59,640 |
Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | 0 |
Current | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 88,775 | 153,043 |
Senior mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 136,145 | 199,608 |
Senior mortgages | Past Due | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 60,256 | 59,640 |
Senior mortgages | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 60,256 | 59,640 |
Senior mortgages | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | 0 |
Senior mortgages | Current | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 75,889 | 139,968 |
Corporate/Partnership loans | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 618 | |
Corporate/Partnership loans | Past Due | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | |
Corporate/Partnership loans | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | |
Corporate/Partnership loans | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | |
Corporate/Partnership loans | Current | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 618 | |
Subordinate mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 12,886 | 12,457 |
Subordinate mortgages | Past Due | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | 0 |
Subordinate mortgages | Greater Than 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | 0 |
Subordinate mortgages | Less Than and Equal to 90 Days | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | 0 | 0 |
Subordinate mortgages | Current | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Total | $ 12,886 | $ 12,457 |
Loans Receivable and Other Le_8
Loans Receivable and Other Lending Investments, Net (Impaired Loans) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Feb. 28, 2022 loan | Dec. 31, 2021 USD ($) loan | |
Financing Receivable, Impaired [Line Items] | ||||||
(Recovery of) provision for loan losses | $ 22,578,000 | $ (2,158,000) | $ 22,713,000 | $ (5,800,000) | ||
Impaired Loans | ||||||
Number of non accrual loans | loan | 1 | 1 | 1 | 1 | ||
Interest income on Impaired loans | $ 0 | $ 0 | $ 0 | $ 0 | ||
Commercial Portfolio Segment | ||||||
Impaired Loans | ||||||
Amortized Cost | 60,256,000 | 60,256,000 | $ 59,640,000 | |||
Unpaid Principal Balance | 59,505,000 | 59,505,000 | 58,888,000 | |||
Related Allowance | (708,000) | (708,000) | (576,000) | |||
Commercial Portfolio Segment | Senior mortgages | ||||||
Impaired Loans | ||||||
Amortized Cost | 60,256,000 | 60,256,000 | 59,640,000 | |||
Unpaid Principal Balance | 59,505,000 | 59,505,000 | 58,888,000 | |||
Related Allowance | $ (708,000) | $ (708,000) | $ (576,000) |
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 | 6 Months Ended | 7 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Income from sales of real estate | $ 96 | $ 492 | $ 708 | ||||
Purchase price for properties acquired | 42,000 | 42,000 | |||||
Loan receivable held for sale | $ 43,215 | ||||||
Safehold Inc. | |||||||
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 | $ 42,000 |
Loans Receivable and Other L_10
Loans Receivable and Other Lending Investments, net (Other Lending Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Available-for-Sale Securities | |||
Amortized Cost Basis | $ 23,640 | $ 23,640 | |
Estimated Fair Value | 23,254 | 23,254 | |
Held-to-Maturity Securities | |||
Amortized Cost Basis | 35,000 | 35,000 | |
Estimated Fair Value | 35,000 | 35,000 | |
Total Other Lending Investments | |||
Face Value | 58,640 | 58,640 | $ 123,855 |
Amortized Cost Basis | 58,640 | 58,640 | 120,693 |
Net Unrealized Gain (Loss) | (386) | (386) | 4,237 |
Estimated Fair Value | 58,254 | 58,254 | 124,930 |
Net Carrying Value | 58,254 | 58,254 | 124,930 |
Repayment on held-to-maturity security | 40,000 | ||
Charge-off of held-to-maturity security | 25,000 | 25,000 | |
Municipal debt securities | |||
Available-for-Sale Securities | |||
Face Value | 23,640 | 23,640 | 23,855 |
Amortized Cost Basis | 23,640 | 23,640 | 23,855 |
Net Unrealized Gain (Loss) | (386) | (386) | 4,237 |
Estimated Fair Value | 23,254 | 23,254 | 28,092 |
Net Carrying Value | 23,254 | 23,254 | 28,092 |
Debt securities | |||
Held-to-Maturity Securities | |||
Face Value | 35,000 | 35,000 | 100,000 |
Amortized Cost Basis | 35,000 | 35,000 | 96,838 |
Estimated Fair Value | 35,000 | 35,000 | 96,838 |
Net Carrying Value | 35,000 | $ 35,000 | $ 96,838 |
Total Other Lending Investments | |||
Repayment on held-to-maturity security | $ 40,000 | ||
Reduction in maturity date of held-to-maturity debt security | 6 months | ||
Charge-off of held-to-maturity security | $ 25,000 |
Loans Receivable and Other L_11
Loans Receivable and Other Lending Investments, net (Maturities of Company Securities) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Amortized Cost Basis | |
Within one year | $ 35,000 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Amortized Cost Basis | 35,000 |
Estimated Fair Value | |
Within one year | 35,000 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 35,000 |
Amortized Cost Basis | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 23,640 |
Amortized Cost Basis | 23,640 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 23,254 |
Total | $ 23,254 |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | $ 1,556,792 | $ 1,556,792 | $ 1,297,281 | |||
Other investments | [1] | 1,556,792 | 1,556,792 | 1,297,281 | ||
Earnings (losses) from equity method investments | 19,393 | $ 11,098 | 44,425 | $ 22,866 | ||
Interest expense | $ 24,149 | 28,641 | $ 53,392 | 57,450 | ||
Mark-to-market gain | 5,100 | |||||
Safehold Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of shares owned (in shares) | 40.1 | 40.1 | ||||
Closing price (in dollars per share) | $ 35.37 | $ 35.37 | ||||
Market value | $ 1,400,000 | $ 1,400,000 | ||||
Dilution gain | 900 | 500 | ||||
Other strategic investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other investments | 47,281 | 47,281 | 66,770 | |||
Earnings (losses) from equity method investments | 380 | 2,856 | 4,003 | 3,814 | ||
Real estate equity investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 1,509,511 | 1,509,511 | 1,230,511 | |||
Earnings (losses) from equity method investments | 19,013 | 8,242 | 40,422 | 19,052 | ||
Real estate equity investments | Safehold Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 1,405,985 | 1,405,985 | 1,168,532 | |||
Earnings (losses) from equity method investments | 14,720 | 9,703 | 31,749 | 21,115 | ||
Real estate equity investments | Ground Lease Plus Fund | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 65,068 | 65,068 | 17,630 | |||
Earnings (losses) from equity method investments | 520 | 1,289 | ||||
Real estate equity investments | Other real estate equity investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value | 38,458 | 38,458 | $ 44,349 | |||
Earnings (losses) from equity method investments | $ 3,773 | $ (1,461) | $ 7,384 | $ (2,063) | ||
[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 | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2022 USD ($) $ / shares | Apr. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) shares | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jul. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) ft² agreement | Feb. 28, 2021 USD ($) | Jan. 31, 2021 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 | May 31, 2019 | Jan. 31, 2019 USD ($) $ / shares shares | Oct. 31, 2017 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jan. 02, 2019 | |
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 | $ 273,179,000 | $ 91,419,000 | ||||||||||||||||||||
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 | $ 96,000 | $ 492,000 | 708,000 | ||||||||||||||||||||
Equity method investments | $ 1,556,792,000 | $ 1,556,792,000 | 1,556,792,000 | $ 1,297,281,000 | |||||||||||||||||||
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 | 3,100,000 | 1,900,000 | 6,300,000 | 3,800,000 | |||||||||||||||||||
Proceeds from sale of purchase option agreement | $ 1,200,000 | 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 | $ 33,300,000 | $ 42,000,000 | $ 42,000,000 | $ 42,000,000 | |||||||||||||||||||
Multiple required that may trigger receipt of additional consideration | 1.05 | 1.25 | 1.25 | 1.25 | 1.25 | ||||||||||||||||||
Percentage of required return on investment that may trigger receipt of additional consideration | 10% | 12% | 9% | ||||||||||||||||||||
Management Fees | SAFE | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Management fee revenue from related party | 5,200,000 | $ 3,500,000 | $ 9,700,000 | $ 7,000,000 | |||||||||||||||||||
Maximum | SAFE | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Leasehold improvement allowance, Ground Leases | $ 51,800,000 | $ 83,000,000 | 83,000,000 | 83,000,000 | |||||||||||||||||||
Sale price per agreement for sale of land and related Ground Lease, subject to certain conditions being met | $ 36,000,000 | ||||||||||||||||||||||
Fee percent of SAFE Equity up to $1.5 billion | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Management fee as percent of equity | 1% | ||||||||||||||||||||||
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 | 215,000,000 | ||||||||||||||||||||
Purchase option, square feet of future office space development | ft² | 1.1 | ||||||||||||||||||||||
Loan Fund | SAFE | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Commitment to provide loan to lessee | 105,000,000 | $ 130,000,000 | 105,000,000 | 105,000,000 | |||||||||||||||||||
Consideration received for loan commitment | 5,000,000 | $ 9,000,000 | |||||||||||||||||||||
Real estate equity investments | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investments | $ 1,509,511,000 | $ 1,509,511,000 | $ 1,509,511,000 | 1,230,511,000 | |||||||||||||||||||
Safehold Inc. | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity interest | 64.70% | 64.70% | 64.70% | ||||||||||||||||||||
Cash investment in equity method investments | $ 10,500,000 | ||||||||||||||||||||||
Shares acquired (in shares) | shares | 200,000 | ||||||||||||||||||||||
Average cost per share | $ / shares | $ 66.83 | $ 66.83 | $ 66.83 | ||||||||||||||||||||
Amount of loan funded | $ 16,100,000 | ||||||||||||||||||||||
Income from sales of real estate | $ 0 | ||||||||||||||||||||||
Consideration received | 22,100,000 | ||||||||||||||||||||||
Safehold Inc. | Private Placement | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Cash investment in equity method investments | $ 191,200,000 | ||||||||||||||||||||||
Shares acquired (in shares) | shares | 3,240,000 | ||||||||||||||||||||||
Safehold Inc. | Real estate equity investments | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Voting power cap threshold | 41.90% | ||||||||||||||||||||||
Equity method investments | $ 1,405,985,000 | $ 1,405,985,000 | $ 1,405,985,000 | $ 1,168,532,000 | |||||||||||||||||||
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 | ||||||||||||||||||||||
Proceeds from sale of ground lease | $ 34,000,000 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||
Other Real Estate Equity Investment January 2021 | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity interest | 53% | ||||||||||||||||||||||
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] | |||||||||||||||||||||||
Cash investment in equity method investments | 2,700,000 | ||||||||||||||||||||||
Commitment to provide loan to lessee | 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] | |||||||||||||||||||||||
Percentage ownership sold | 50% | 50% | 50% | ||||||||||||||||||||
Commitment to provide loan to lessee | $ 50,000,000 | ||||||||||||||||||||||
Consideration received | $ 1,900,000 | ||||||||||||||||||||||
Recognized gain or loss | $ 0 | ||||||||||||||||||||||
Hotel Property | SAFE | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Proceeds from sale of ground lease | $ 9,000,000 | ||||||||||||||||||||||
Gain (loss) from sale of ground lease | $ 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 | 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 | $ 83,000,000 |
Other Investments (Net Lease Ve
Other Investments (Net Lease Venture II) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Nov. 30, 2021 | Mar. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire property | $ 33.3 | |
Net Lease Venture II | Office laboratory property | Liabilities associated with real estate held for sale and classified as discontinued operations | ||
Schedule of Equity Method Investments [Line Items] | ||
Mortgage liability assumed | 44.4 | |
Safehold Inc. | Net Lease Venture II | Office laboratory property | ||
Schedule of Equity Method Investments [Line Items] | ||
Payment to terminate a real estate purchase option | $ 0.3 | |
Net Lease Venture II | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest | 51.90% | |
Net Lease Venture II | Office laboratory property | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire property | $ 0.6 |
Other Investments (Other Real E
Other Investments (Other Real Estate Equity Investments) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2022 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) lease | Dec. 31, 2021 USD ($) | Nov. 30, 2021 USD ($) | Jan. 31, 2021 USD ($) loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investments | $ 1,556,792,000 | $ 1,297,281,000 | $ 1,556,792,000 | |||||||
Net proceeds from sales of loans receivable | 145,583,000 | $ 79,560,000 | ||||||||
Income from sales of real estate | $ 96,000 | $ 492,000 | 708,000 | |||||||
Payments to acquire property | $ 33,300,000 | |||||||||
Ground Lease Plus Fund | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of ground leases sold | lease | 2 | |||||||||
Income from sales of real estate | $ 500,000 | 0 | ||||||||
Other real estate equity investments | Minimum | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest | 48% | 48% | ||||||||
Other real estate equity investments | Maximum | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest | 95% | 95% | ||||||||
Other real estate equity investments | Operating Properties | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investments | $ 38,200,000 | 43,300,000 | $ 38,200,000 | |||||||
Other real estate equity investments | Land | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity method investments | $ 300,000 | $ 1,100,000 | $ 300,000 | |||||||
Other Real Estate Equity Investment Aug 2018 | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Interest sold | 50% | |||||||||
Interest income | $ 600,000 | $ 1,100,000 | ||||||||
Other Real Estate Equity Investment January 2021 | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest | 53% | |||||||||
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] | ||||||||||
Commitment to provide loan to lessee | $ 75,000,000 | |||||||||
Loan Fund [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest | 53% | 53% | ||||||||
Loan Fund [Member] | SAFE | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Commitment to provide loan to lessee | $ 105,000,000 | $ 130,000,000 | $ 105,000,000 | |||||||
Consideration received for loan commitment | $ 5,000,000 | $ 9,000,000 |
Other Investments (Summarized I
Other Investments (Summarized Investee Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Total assets | [1] | $ 3,610,620 | $ 3,610,620 | $ 4,840,534 | ||
Total liabilities | [1] | 1,979,756 | 1,979,756 | 3,777,328 | ||
Noncontrolling interests | [1] | 16,287 | 16,287 | 211,910 | ||
Total equity attributable to parent entities | [1] | 1,614,577 | 1,614,577 | $ 851,296 | ||
Revenues | 48,063 | $ 54,254 | 80,016 | $ 114,238 | ||
Expenses | 83,387 | 101,560 | 141,321 | 189,118 | ||
Net Income Attributable to Parent | $ (132,611) | $ (13,669) | 484,118 | (8,200) | ||
Safehold Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenues | 125,247 | 87,720 | ||||
Expenses | 82,157 | 57,536 | ||||
Net Income Attributable to Parent | $ 47,551 | $ 31,640 | ||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities (“VIEs”). |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities (Deferred Expenses and Other Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | ||
Real Estate Properties [Line Items] | ||||||
Intangible assets, net | $ 350 | $ 350 | $ 1,209 | |||
Restricted cash | 5,179 | 5,179 | 54,395 | |||
Operating lease right-of-use assets | 18,101 | 18,101 | 20,437 | |||
Other receivables | 3,739 | 3,739 | 5,054 | |||
Other assets | 19,006 | 19,006 | 16,040 | |||
Leasing costs, net | 665 | 665 | 818 | |||
Corporate furniture, fixtures and equipment, net | 1,696 | 1,696 | 1,852 | |||
Deferred financing fees, net | 204 | 204 | 629 | |||
Deferred expenses and other assets, net | [1] | 48,940 | 48,940 | 100,434 | ||
Intangible assets, accumulated amortization | 100 | $ 100 | 10,200 | |||
Weighted average amortization period | 5 years 4 months 24 days | |||||
Accumulated amortization on leasing costs | 400 | $ 400 | 1,100 | |||
Accumulated depreciation on corporate furniture, fixtures and equipment | 12,000 | 12,000 | $ 14,800 | |||
In-Place Leases | ||||||
Real Estate Properties [Line Items] | ||||||
Amortization of intangible assets | $ 100 | $ 700 | ||||
General and Administrative | ||||||
Real Estate Properties [Line Items] | ||||||
Operating lease, expense | 1,200 | 1,200 | 2,400 | 2,500 | ||
Real Estate Expense | ||||||
Real Estate Properties [Line Items] | ||||||
Operating lease, expense | $ 300 | $ 200 | $ 400 | $ 300 | ||
[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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Other Assets and Other Liabilities [Abstract] | |||
Other liabilities | $ 27,120 | $ 30,362 | |
Accrued expenses | 65,760 | 151,810 | |
Operating lease liabilities (see table above) | 20,355 | 23,267 | |
Accrued interest payable | 27,556 | 31,293 | |
Accounts payable, accrued expenses and other liabilities | [1] | 140,791 | 236,732 |
Deferred income | $ 20,200 | 20,100 | |
Expected credit losses for unfunded commitments | $ 100 | ||
[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 | 6 Months Ended | |||||||||||
Jun. 30, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Apr. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | $ 1,857,957 | $ 1,857,957 | ||||||||||||
Debt discounts and deferred financing costs, net | (24,707) | (24,707) | $ (32,201) | |||||||||||
Total debt obligations, net | [1] | 1,833,250 | 1,833,250 | 2,572,174 | ||||||||||
Stockholders' equity | 1,630,864 | [1] | $ 1,008,706 | 1,630,864 | [1] | $ 1,008,706 | $ 1,784,950 | 1,063,206 | [1] | $ 1,051,007 | $ 1,064,383 | |||
Interest costs capitalized | $ 400 | $ 200 | $ 700 | $ 400 | ||||||||||
Period of Adoption, Adjustment | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stockholders' equity | $ (10,019) | |||||||||||||
Senior Term Loan | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis point spread on variable interest rate | 1% | |||||||||||||
3.125% Senior Convertible Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | ||||||||||
Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | $ 0 | $ 0 | 491,875 | |||||||||||
Debt discounts and deferred financing costs, net | 0 | 0 | ||||||||||||
Total debt obligations, net | 0 | 0 | ||||||||||||
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% | |||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis point spread on variable interest rate | 1% | |||||||||||||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | Interest Rate Category Two | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis point spread on variable interest rate | 2% | |||||||||||||
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 | Interest Rate Category One | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Basis point spread on variable interest rate | 1% | |||||||||||||
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 | 0 | $ 0 | 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% | |||||||||||||
Unsecured notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | 1,757,957 | $ 1,757,957 | 2,012,500 | |||||||||||
Unsecured notes | 3.125% Senior Convertible Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | $ 93,110 | $ 93,110 | $ 287,500 | |||||||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||||||
Convertible debt, conversion ratio (in shares per par value) | 0.0728554 | |||||||||||||
Convertible debt, conversion price (in dollars per share) | $ 13.73 | $ 13.73 | ||||||||||||
Contractual interest | $ 900 | $ 2,200 | $ 3,200 | $ 4,500 | ||||||||||
Unsecured notes | 4.75% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | $ 767,941 | $ 767,941 | $ 775,000 | |||||||||||
Stated interest rate | 4.75% | 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 | $ 346,906 | $ 346,906 | 400,000 | |||||||||||
Stated interest rate | 5.50% | 5.50% | ||||||||||||
Other Debt Obligations | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Total debt obligations | $ 1,857,957 | $ 1,857,957 | 2,604,375 | |||||||||||
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 | Jun. 30, 2022 | Dec. 31, 2021 | |
Maturities of Long-term Debt [Abstract] | |||
2022 (remaining six months) | $ 93,110 | ||
2023 | 0 | ||
2024 | 767,941 | ||
2025 | 550,000 | ||
2026 | 346,906 | ||
Thereafter | 100,000 | ||
Total principal maturities | 1,857,957 | ||
Debt discounts and deferred financing costs, net | (24,707) | $ (32,201) | |
Total debt obligations, net | [1] | 1,833,250 | 2,572,174 |
Unsecured Debt | |||
Maturities of Long-term Debt [Abstract] | |||
2022 (remaining six months) | 93,110 | ||
2023 | 0 | ||
2024 | 767,941 | ||
2025 | 550,000 | ||
2026 | 346,906 | ||
Thereafter | 100,000 | ||
Total principal maturities | 1,857,957 | ||
Debt discounts and deferred financing costs, net | (24,707) | ||
Total debt obligations, net | 1,833,250 | ||
Secured Debt | |||
Maturities of Long-term Debt [Abstract] | |||
2022 (remaining six months) | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
Thereafter | 0 | ||
Total principal maturities | 0 | $ 491,875 | |
Debt discounts and deferred financing costs, net | 0 | ||
Total debt obligations, net | $ 0 | ||
[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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | ||||||
Long-term debt, outstanding balance | $ 1,857,957,000 | $ 1,857,957,000 | ||||
Loss (gain) on early extinguishment of debt | 116,563,000 | $ 0 | 117,991,000 | $ 0 | ||
Senior Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Loss (gain) on early extinguishment of debt | $ 1,400,000 | |||||
Senior Term Loan | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis point spread on variable interest rate | 1% | |||||
Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, outstanding balance | 0 | $ 0 | $ 491,875,000 | |||
Secured Debt | Senior Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, face amount | $ 650,000,000 | |||||
Long-term debt, outstanding balance | 0 | $ 0 | 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 | $ 0 | |||
Maximum borrowing capacity | 350,000,000 | $ 350,000,000 | ||||
Debt instrument term | 1 year | |||||
Current borrowing capacity | $ 35,200,000 | $ 35,200,000 | ||||
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% | |||||
Secured Debt | Revolving Credit Facility | LIBOR | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis point spread on variable interest rate | 1% | |||||
Secured Debt | Revolving Credit Facility | LIBOR | Interest Rate Category Two | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis point spread on variable interest rate | 2% | |||||
Secured Debt | Revolving Credit Facility | LIBOR | Interest Rate Category Two | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis point spread on variable interest rate | 2.50% | |||||
Secured Debt | Revolving Credit Facility | Base Rate | Interest Rate Category One | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis point spread on variable interest rate | 1% | |||||
Secured Debt | Revolving Credit Facility | Base Rate | Interest Rate Category One | 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 ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Loss (gain) on early extinguishment of debt | $ 116,563 | $ 0 | $ 117,991 | $ 0 | |||
3.125% Senior Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||
Unsecured notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of consenting notes paid as consent fees to note holders | 0.75% | ||||||
Unsecured notes | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of consenting notes paid as consent fees to note holders | 1% | ||||||
Unsecured notes | 3.125% Senior Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal of debt converted and retired | $ 194,000 | ||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% |
Common shares issued in in conversion of convertible notes | 13,750 | ||||||
Payments to debt holders in conjunction with the conversion and retirement of debt | $ 14,000 | ||||||
Net increase in shareholders equity on conversion of convertible notes | 180,600 | ||||||
Loss (gain) on early extinguishment of debt | $ 118,100 | ||||||
Unsecured notes | 4.75% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | 4.75% | |||
Principal amount of notes repurchased | $ 7,100 | ||||||
Payments for repurchase of notes | 7,200 | ||||||
Loss (gain) on early extinguishment of debt | $ 200 | ||||||
Unsecured notes | 4.25% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.25% | 4.25% | 4.25% | ||||
Unsecured notes | 5.50% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.50% | 5.50% | 5.50% | ||||
Principal amount of notes repurchased | $ 53,100 | $ 53,100 | $ 53,100 | ||||
Payments for repurchase of notes | 50,600 | $ 50,600 | $ 50,600 | ||||
Loss (gain) on early extinguishment of debt | $ (1,700) |
Debt Obligations, net (Debt Cov
Debt Obligations, net (Debt Covenants) (Details) | Jun. 30, 2022 |
Unsecured Debt | |
Debt Instrument [Line Items] | |
Unencumbered assets to unsecured indebtedness ratio (at least) | 1.3 |
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 | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Other Commitments [Line Items] | |
Percentage of capital committed that may be drawn down | 100% |
Performance-Based Commitments | $ 155,650 |
Strategic Investments | 5,410 |
Total | 161,060 |
Loans | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 1,877 |
Strategic Investments | 0 |
Total | 1,877 |
Real Estate | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 4,271 |
Strategic Investments | 3,161 |
Total | 7,432 |
Other Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 149,502 |
Strategic Investments | 2,249 |
Total | $ 151,751 |
Commitments and Contingencies_3
Commitments and Contingencies (Other Commitments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Operating | |||||
2022 (remaining six months) | $ 3,237 | $ 3,237 | |||
2023 | 6,295 | 6,295 | |||
2024 | 6,178 | 6,178 | |||
2025 | 6,166 | 6,166 | |||
2026 | 142 | 142 | |||
Thereafter | 162 | 162 | |||
Total undiscounted cash flows | 22,180 | 22,180 | |||
Present value discount | (1,825) | (1,825) | |||
Lease liabilities | $ 20,355 | $ 20,355 | $ 23,267 | ||
Operating leases, weighted average incremental borrowing rate, discount rate (percent) | 4.70% | 4.70% | |||
Operating leases, weighted average lease term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | |||
Operating lease payments made | $ 1,700 | $ 400 | $ 3,400 | $ 1,200 | |
Finance lease payments made | $ 1,400 | $ 1,300 | $ 2,700 |
Derivatives - Classification on
Derivatives - Classification on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Expected amount related to cash flow hedge that will be reclassified over next twelve months | $ 2,400 | |
Derivatives Designated in Hedging Relationships | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | $ 8,395 |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0 | $ 8,395 |
Derivatives (Effect in the Cons
Derivatives (Effect in the Consolidated Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 4,382 | $ (764) | $ 7,137 | $ 11,211 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | [1] | (580) | (2,486) | (1,201) | (4,824) |
Derivatives Designated in Hedging Relationships | Interest rate swaps | Net income from discontinued operations | |||||
Derivative financial instruments on consolidated statements of operations | |||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (764) | 2,573 | |||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | (2,029) | (4,133) | |||
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 | 4,382 | 0 | 7,138 | 8,638 | |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | $ (580) | $ (457) | $ (1,201) | $ (691) | |
[1] Reclassified to “Net income from discontinued operations” in the Company’s consolidated statements of operations for the three and six months ended June 30, 2021 is $2,029 and $4,133 , respectively. Reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the three months ended June 30, 2022 and 2021 are $580 and $457 respectively. Reclassified to “Earnings from equity method investments” in the Company’s consolidated statements of operations for the six months ended June 30, 2022 and 2021 are $1,201 and $691 , respectively. |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Feb. 28, 2022 | |
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 | $ 282,490 | $ 282,490 | |||
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 | $ 5,874 | $ 11,748 | $ 11,748 | ||
Capital gains distribution | 100% | |||||
Unrecaptured Section 1250 gain percentage | 18.31% | |||||
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% | |||||
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 | $ 72,664 | $ 72,664 | |||
Preferred stock dividends declared and paid | $ 3,100 | 3,100 | ||||
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 | ||||
Rate per Annum | 7.50% | 7.50% | ||||
Annual Dividend Per Share (in dollars per share) | $ 1.88 | $ 1.88 | ||||
Carrying Value | $ 120,785 | $ 120,785 | $ 120,785 | |||
Preferred stock dividends declared and paid | $ 4,700 | 4,700 | ||||
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% | 8% | ||||
Annual Dividend Per Share (in dollars per share) | $ 2 | $ 2 | ||||
Carrying Value | $ 89,041 | $ 89,041 | $ 89,041 | |||
Preferred stock dividends declared and paid | $ 4,000 | $ 4,000 |
Equity (Dividends) (Details)
Equity (Dividends) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Dividends | |||||
Operating loss carryforwards | $ 614,600 | ||||
Operating loss carryforwards, no expiration | $ 154,000 | ||||
Common stock dividends declared | $ 10,498 | $ 9,148 | $ 19,226 | $ 17,384 | |
Common stock dividends declared per share (in dollars per share) | $ 0.25 | $ 0.235 | |||
Capital gains distribution | 100% | ||||
Unrecaptured Section 1250 gain percentage | 18.31% | ||||
Common Stock | |||||
Dividends | |||||
Capital gains distribution | 100% | ||||
Unrecaptured Section 1250 gain percentage | 18.31% |
Equity (Stock Repurchase Progra
Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2022 | Feb. 28, 2022 | |
Stock repurchase program | |||
Shares repurchased and retired during period (in shares) | 1.8 | ||
Common stock value repurchased including acquisition costs | $ 32,400,000 | ||
Average cost per share of repurchased shares (in dollars per share) | $ 17.57 | ||
Maximum | |||
Stock repurchase program | |||
Stock repurchase program, authorized amount | $ 50,000,000 | ||
Stock repurchase program remaining authorized amount | $ 50,000,000 | ||
Increase in authorized shares for repurchase | $ 50,000,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ 1,630,864 | [1] | $ 1,784,950 | $ 1,063,206 | [1] | $ 1,008,706 | $ 1,051,007 | $ 1,064,383 |
Unrealized (losses) gains on available-for-sale securities | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | (386) | 4,237 | ||||||
Unrealized losses on cash flow hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | (17,486) | (25,824) | ||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Stockholders' equity | $ (17,872) | $ (21,224) | $ (21,587) | $ (35,824) | $ (41,858) | $ (52,680) | ||
[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 | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ (17,923) | $ 14,791 | $ (30,350) | $ 20,299 | ||
Long-term Incentive Plan 2009 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares remaining available for issuance (in shares) | 2,300,000 | 2,300,000 | ||||
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 | 6 Months Ended | |||
Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) plan item $ / shares shares | Jun. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting rights percentage | 15% | ||||
Equity-based compensation | $ (17,923) | $ 14,791 | $ (30,350) | $ 20,299 | |
Performance Incentive Plan | |||||
Accrued expenses | 65,760 | $ 65,760 | $ 151,810 | ||
iPIP Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 6 years | ||||
Vesting rights percentage | 40% | ||||
Number of iPIP plans | plan | 5 | ||||
Investment period of iPIP plans | 2 years | ||||
Performance Incentive Plan | |||||
Accrued expenses | $ 47,000 | $ 47,000 | $ 116,600 | ||
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% | ||||
Equity-based compensation | $ 2,400 | 1,500 | |||
Settlement or distribution on units and awards, cash (as a percent) | 50% | ||||
Settlement or distribution on units and awards, common stock (as a percent) | 50% | ||||
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) | 0 | ||||
Points at end of period (in shares) | 95.20 | ||||
Aggregate gross book value of investments | $ 764,000,000 | $ 764,000,000 | |||
2021-2022 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 92.35 | 92.35 | |||
Granted (in shares) | 7.95 | ||||
Forfeited (in shares) | (0.35) | ||||
Points at end of period (in shares) | 84.75 | ||||
Aggregate gross book value of investments | $ 435,000 | $ 435,000 | |||
2013-2018 Performance Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity-based compensation | $ (37,100) | 15,100 | |||
Settlement or distribution on units and awards, cash (as a percent) | 50% | ||||
Settlement or distribution on units and awards, common stock (as a percent) | 50% | ||||
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 | $ 13,000 | $ 13,000 | |||
iPIP distributions to plan participants | $ 19,600 | ||||
iPIP distributions, equity component (in shares) | shares | 412,041 | ||||
iPIP distributions, equity component, fair value (in dollars per share) | $ / shares | $ 16.06 | ||||
iPIP distributions, shares issued net of tax withholdings (in shares) | shares | 215,657 | ||||
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 | $ 0 | $ 0 | |||
iPIP distributions to plan participants | $ 19,200 | $ 3,200 | |||
iPIP distributions, equity component (in shares) | shares | 402,731 | 97,881 | |||
iPIP distributions, equity component, fair value (in dollars per share) | $ / shares | $ 16.06 | $ 17.65 | |||
iPIP distributions, shares issued net of tax withholdings (in shares) | shares | 193,416 | 57,920 | |||
2017-2018 Performance Incentive Plan | |||||
Performance Incentive Plan | |||||
Points at beginning of period (in shares) | 75.34 | 75.34 | |||
Granted (in shares) | 0 | ||||
Points at end of period (in shares) | 75.34 | ||||
Aggregate gross book value of investments | $ 238,000 | $ 238,000 | |||
Safehold Inc. | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 40,100,000 | 40,100,000 | |||
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 | 2021-2022 Performance Incentive Plans | |||||
Performance Incentive Plan | |||||
Number of shares owned (in shares) | shares | 5,000,000 | 5,000,000 | |||
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 | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Number of Shares | |
Non-vested at beginning of period (in shares) | 754 |
Granted (in shares) | 214 |
Vested (in shares) | (283) |
Forfeited (in shares) | (13) |
Non-vested at end of period (in shares) | 672 |
Unrecognized compensation cost | $ | $ 7.7 |
Weighted-average period to recognize the unrecognized compensation cost | 1 year 6 months 14 days |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans and Employee Benefits (Directors' Awards) (Details) - Directors $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 38,953 |
Grant date fair value (in dollars per share) | $ / shares | $ 16.33 |
Common Stock Equivalents | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,280 |
Grant date fair value (in dollars per share) | $ / shares | $ 17.97 |
Non-vested, outstanding (in shares) | 131,983 |
Non-vested, aggregate intrinsic value | $ | $ 1.8 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans and Employee Benefits (401(k) Plan) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | ||||
Gross contributions made by the Company | $ 0.1 | $ 0.1 | $ 0.9 | $ 0.7 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ (132,494) | $ (36,731) | $ (134,382) | $ (51,227) |
Net (income) loss from continuing operations attributable to noncontrolling interests | (117) | 20 | (99) | 65 |
Preferred dividends | (5,874) | (5,874) | (11,748) | (11,748) |
Net loss from continuing operations and allocable to common shareholders for basic earnings per common share | (138,485) | (42,585) | (146,229) | (62,910) |
Net loss from continuing operations and allocable to common shareholders - Diluted | $ (138,485) | $ (42,585) | $ (146,229) | $ (62,910) |
Earnings Per Share (Earnings Al
Earnings Per Share (Earnings Allocable to Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator for basic and diluted earnings per share: | ||||
Net loss from continuing operations and allocable to common shareholders - Basic | $ (138,485) | $ (42,585) | $ (146,229) | $ (62,910) |
Net loss from continuing operations and allocable to common shareholders - Diluted | (138,485) | (42,585) | (146,229) | (62,910) |
Net income from discontinued operations - Basic | 25,315 | 797,688 | 47,800 | |
Net income from discontinued operations | 25,315 | 797,688 | 47,800 | |
Net (income) from discontinued operations attributable to noncontrolling interests | (2,273) | (179,089) | (4,838) | |
Net income (loss) allocable to common shareholders - Basic | (138,485) | (19,543) | 472,370 | (19,948) |
Net income (loss) allocable to common shareholders - Diluted | $ (138,485) | $ (19,543) | $ 472,370 | $ (19,948) |
Denominator for basic and diluted earnings per share: | ||||
Weighted average common shares outstanding for basic earnings per common share | 81,442,000 | 72,872,000 | 75,274,000 | 73,374,000 |
Weighted average common shares outstanding for diluted earnings per common share | 81,442,000 | 72,872,000 | 75,274,000 | 73,374,000 |
Basic and diluted earnings per common share: | ||||
Net loss from continuing operations and allocable to common shareholders - Basic | $ (1.70) | $ (0.59) | $ (1.94) | $ (0.86) |
Net loss from continuing operations and allocable to common shareholders - Diluted | (1.70) | (0.59) | (1.94) | (0.86) |
Net income from discontinued operations - Basic | 0.32 | 8.22 | 0.59 | |
Net income from discontinued operations - Diluted | 0.32 | 8.22 | 0.59 | |
Net income (loss) allocable to common shareholders - Basic | (1.70) | (0.27) | 6.28 | (0.27) |
Net income (loss) allocable to common shareholders - Diluted | $ (1.70) | $ (0.27) | $ 6.28 | $ (0.27) |
3.125% Senior Convertible Notes | ||||
Basic and diluted earnings per common share: | ||||
Antidilutive (in shares) | 1,787,708 | 4,700,805 | 5,308,491 | 3,797,296 |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | ||
Assets and liabilities recorded at fair value | ||||
Held-to-maturity securities | $ 35,000 | $ 35,000 | ||
Loan receivable held for sale | $ 43,215 | |||
Other investments | [1] | 1,556,792 | 1,556,792 | 1,297,281 |
Impairment of real estate | 1,800 | |||
Repayment on held-to-maturity security | 40,000 | |||
Charge-off of held-to-maturity security | 25,000 | 25,000 | ||
Recurring Basis | ||||
Assets and liabilities recorded at fair value | ||||
Derivative liabilities | 8,395 | |||
Available-for-sale securities | 23,254 | 23,254 | 28,092 | |
Recurring Basis | Fair Value, Inputs, Level 2 | ||||
Assets and liabilities recorded at fair value | ||||
Derivative liabilities | 8,395 | |||
Recurring Basis | Fair Value, Inputs, Level 3 | ||||
Assets and liabilities recorded at fair value | ||||
Available-for-sale securities | 23,254 | 23,254 | $ 28,092 | |
Non-recurring Basis | ||||
Assets and liabilities recorded at fair value | ||||
Real estate, net | 811 | 811 | ||
Held-to-maturity securities | 35,000 | 35,000 | ||
Non-recurring Basis | Fair Value, Inputs, Level 3 | ||||
Assets and liabilities recorded at fair value | ||||
Real estate, net | 811 | 811 | ||
Held-to-maturity securities | $ 35,000 | $ 35,000 | ||
[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 | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 28,092 | $ 25,274 |
Purchases | 0 | 3,375 |
Repayments | (215) | (201) |
Unrealized gains (losses) recorded in other comprehensive income | (4,623) | (374) |
Ending balance | $ 23,254 | $ 28,074 |
Fair Values - (Carrying Value a
Fair Values - (Carrying Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Apr. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Carrying Value | ||||
Book and estimated fair values of financial instruments | ||||
Net investment in leases | $ 32 | $ 43 | ||
Loans receivable and other lending investments | 204 | 333 | ||
Loans receivable held for sale | 0 | 43 | ||
Cash and cash equivalents | 1,401 | 340 | ||
Restricted cash | 5 | 54 | ||
Debt obligations, net | 1,833 | 2,572 | ||
Carrying Value | Fair Value, Inputs, Level 1 | ||||
Book and estimated fair values of financial instruments | ||||
Debt obligations, net | 1,734 | 2,473 | ||
Carrying Value | Fair Value, Inputs, Level 3 | ||||
Book and estimated fair values of financial instruments | ||||
Debt obligations, net | 99 | 99 | ||
Fair Value | ||||
Book and estimated fair values of financial instruments | ||||
Net investment in leases | 32 | 43 | ||
Loans receivable and other lending investments | 204 | 345 | ||
Loans receivable held for sale | 0 | 43 | ||
Cash and cash equivalents | 1,401 | 340 | ||
Restricted cash | 5 | 54 | ||
Debt obligations, net | 1,818 | 2,903 | ||
Fair Value | Fair Value, Inputs, Level 1 | ||||
Book and estimated fair values of financial instruments | ||||
Debt obligations, net | 1,717 | 2,799 | ||
Fair Value | Fair Value, Inputs, Level 3 | ||||
Book and estimated fair values of financial instruments | ||||
Debt obligations, net | $ 101 | 104 | ||
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 | $ 99,600 | $ 527,500 | ||
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 | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | ||
Segment Profit (Loss) | ||||||
Number of reportable segments | segment | 4 | |||||
Revenues | $ 48,063 | $ 54,254 | $ 80,016 | $ 114,238 | ||
Earnings from equity method investments | 19,393 | 11,098 | 44,425 | 22,866 | ||
Income from sales of real estate | 96 | 492 | 708 | |||
Total revenue and other earnings | 67,456 | 65,448 | 124,933 | 137,812 | ||
Other expense | (1,523) | (211) | (2,453) | (463) | ||
Allocated interest expense | (24,149) | (28,641) | (53,392) | (57,450) | ||
Allocated general and administrative | (12,744) | (15,603) | (26,546) | (31,534) | ||
Segment profit (loss) | (8,071) | (21,127) | (19,182) | (31,796) | ||
Other significant items: | ||||||
Provision for (recovery of) loan losses | 22,578 | (2,158) | 22,713 | (5,800) | ||
Provision for losses on net investment in leases | 99 | 779 | 380 | 780 | ||
Impairment of assets | 1,768 | 0 | 1,768 | 257 | ||
Depreciation and amortization | 1,338 | 1,573 | 2,695 | 3,974 | ||
Capitalized expenditures | 6,133 | 5,003 | 11,064 | 9,800 | ||
Segment assets | ||||||
Real estate, net | [1] | 90,231 | 90,231 | $ 92,150 | ||
Real estate available and held for sale | [1] | 1,970 | 1,970 | 301 | ||
Total real estate | [1] | 92,201 | 92,201 | 92,451 | ||
Real estate and other assets available and held for sale and classified as discontinued operations | 11,518 | 11,518 | 2,299,711 | |||
Net investment in leases | 31,999 | 31,999 | 43,215 | |||
Land and development, net | [1] | 259,718 | 259,718 | 286,810 | ||
Loans receivable and other lending investments, net | 204,252 | 204,252 | 332,844 | |||
Loan receivable held for sale | 43,215 | |||||
Other investments | [1] | 1,556,792 | 1,556,792 | 1,297,281 | ||
Total portfolio assets | 2,156,480 | 2,156,480 | 4,395,527 | |||
Cash and other assets | 1,454,140 | 1,454,140 | 445,007 | |||
Total assets | [1] | 3,610,620 | 3,610,620 | 4,840,534 | ||
Stock-based compensation expense | (17,923) | 14,791 | (30,350) | 20,299 | ||
Operating lease income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 3,182 | 4,792 | 6,291 | 9,723 | ||
Interest income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 4,221 | 8,084 | 9,169 | 17,874 | ||
Interest income from sales-type leases | ||||||
Segment Profit (Loss) | ||||||
Revenues | 376 | 157 | 732 | 157 | ||
Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 15,881 | 8,903 | 24,521 | 21,917 | ||
Land development revenue | ||||||
Segment Profit (Loss) | ||||||
Revenues | 24,403 | 32,318 | 39,303 | 64,567 | ||
Cost of sales expense | (24,095) | (30,803) | (38,591) | (60,126) | ||
Real estate expense | ||||||
Segment Profit (Loss) | ||||||
Cost of sales expense | (13,016) | (11,317) | (23,133) | (20,035) | ||
Operating Segments | Net Lease | ||||||
Segment Profit (Loss) | ||||||
Earnings from equity method investments | 15,240 | 9,703 | 33,038 | 21,115 | ||
Income from sales of real estate | 492 | |||||
Total revenue and other earnings | 20,835 | 13,688 | 44,017 | 28,596 | ||
Other expense | (521) | (992) | ||||
Allocated interest expense | (13,162) | (14,566) | (29,377) | (28,891) | ||
Allocated general and administrative | (3,838) | (6,120) | (8,854) | (12,057) | ||
Segment profit (loss) | 2,853 | (7,010) | 4,137 | (12,820) | ||
Other significant items: | ||||||
Provision for losses on net investment in leases | 99 | 779 | 380 | 780 | ||
Depreciation and amortization | 1 | |||||
Segment assets | ||||||
Real estate and other assets available and held for sale and classified as discontinued operations | 11,518 | 11,518 | 2,299,711 | |||
Net investment in leases | 31,999 | 31,999 | 43,215 | |||
Loan receivable held for sale | 43,215 | |||||
Other investments | 1,471,053 | 1,471,053 | 1,186,162 | |||
Total portfolio assets | 1,514,570 | 1,514,570 | 3,572,303 | |||
Operating Segments | Net Lease | Interest income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 299 | 75 | 317 | |||
Operating Segments | Net Lease | Interest income from sales-type leases | ||||||
Segment Profit (Loss) | ||||||
Revenues | 376 | 157 | 732 | 157 | ||
Operating Segments | Net Lease | Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 5,219 | 3,529 | 9,680 | 7,007 | ||
Operating Segments | Net Lease | Real estate expense | ||||||
Segment Profit (Loss) | ||||||
Cost of sales expense | (461) | (12) | (657) | (468) | ||
Operating Segments | Real Estate Finance | ||||||
Segment Profit (Loss) | ||||||
Earnings from equity method investments | 769 | 755 | 1,783 | 1,220 | ||
Total revenue and other earnings | 5,016 | 8,592 | 10,914 | 18,928 | ||
Other expense | (40) | (87) | (159) | (153) | ||
Allocated interest expense | (2,196) | (3,828) | (5,336) | (8,406) | ||
Allocated general and administrative | (1,226) | (1,242) | (2,350) | (2,701) | ||
Segment profit (loss) | 1,554 | 3,435 | 3,069 | 7,668 | ||
Other significant items: | ||||||
Provision for (recovery of) loan losses | 22,578 | (2,158) | 22,713 | (5,800) | ||
Segment assets | ||||||
Loans receivable and other lending investments, net | 204,252 | 204,252 | 332,844 | |||
Other investments | 23,219 | 23,219 | 48,862 | |||
Total portfolio assets | 227,471 | 227,471 | 381,706 | |||
Operating Segments | Real Estate Finance | Interest income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 4,221 | 7,785 | 9,094 | 17,557 | ||
Operating Segments | Real Estate Finance | Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 26 | 52 | 37 | 151 | ||
Operating Segments | Operating Properties | ||||||
Segment Profit (Loss) | ||||||
Earnings from equity method investments | 3,673 | (2,935) | 3,718 | (6,682) | ||
Income from sales of real estate | 96 | 708 | ||||
Total revenue and other earnings | 14,347 | 5,817 | 20,029 | 9,857 | ||
Allocated interest expense | (1,139) | (2,030) | (2,480) | (4,073) | ||
Allocated general and administrative | (625) | (664) | (1,103) | (1,324) | ||
Segment profit (loss) | 4,322 | (3,133) | 2,313 | (5,595) | ||
Other significant items: | ||||||
Impairment of assets | 1,750 | 1,750 | 257 | |||
Depreciation and amortization | 969 | 1,221 | 1,955 | 3,208 | ||
Capitalized expenditures | 320 | 432 | 540 | 489 | ||
Segment assets | ||||||
Real estate, net | 90,231 | 90,231 | 92,150 | |||
Real estate available and held for sale | 1,970 | 1,970 | 301 | |||
Total real estate | 92,201 | 92,201 | 92,451 | |||
Other investments | 38,168 | 38,168 | 43,252 | |||
Total portfolio assets | 130,369 | 130,369 | 135,703 | |||
Operating Segments | Operating Properties | Operating lease income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 3,082 | 4,703 | 6,056 | 9,540 | ||
Operating Segments | Operating Properties | Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 7,592 | 3,953 | 10,255 | 6,291 | ||
Operating Segments | Operating Properties | Real estate expense | ||||||
Segment Profit (Loss) | ||||||
Cost of sales expense | (8,261) | (6,256) | (14,133) | (10,055) | ||
Operating Segments | Land and Development | ||||||
Segment Profit (Loss) | ||||||
Earnings from equity method investments | 100 | 1,474 | 3,665 | 4,619 | ||
Total revenue and other earnings | 25,921 | 35,196 | 45,838 | 72,073 | ||
Other expense | (238) | (320) | ||||
Allocated interest expense | (2,745) | (3,864) | (6,988) | (7,802) | ||
Allocated general and administrative | (2,114) | (2,367) | (4,369) | (4,795) | ||
Segment profit (loss) | (7,565) | (6,887) | (12,773) | (10,162) | ||
Other significant items: | ||||||
Depreciation and amortization | 227 | 228 | 456 | 446 | ||
Capitalized expenditures | 5,813 | 4,571 | 10,524 | 9,311 | ||
Segment assets | ||||||
Land and development, net | 259,718 | 259,718 | 286,810 | |||
Other investments | 290 | 290 | 1,096 | |||
Total portfolio assets | 260,008 | 260,008 | 287,906 | |||
Operating Segments | Land and Development | Operating lease income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 100 | 89 | 235 | 183 | ||
Operating Segments | Land and Development | Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | 1,318 | 1,315 | 2,635 | 2,704 | ||
Operating Segments | Land and Development | Land development revenue | ||||||
Segment Profit (Loss) | ||||||
Revenues | 24,403 | 32,318 | 39,303 | 64,567 | ||
Cost of sales expense | (24,095) | (30,803) | (38,591) | (60,126) | ||
Operating Segments | Land and Development | Real estate expense | ||||||
Segment Profit (Loss) | ||||||
Cost of sales expense | (4,294) | (5,049) | (8,343) | (9,512) | ||
Corporate/Other | ||||||
Segment Profit (Loss) | ||||||
Earnings from equity method investments | (389) | 2,101 | 2,221 | 2,594 | ||
Total revenue and other earnings | 1,337 | 2,155 | 4,135 | 8,358 | ||
Other expense | (724) | (124) | (982) | (310) | ||
Allocated interest expense | (4,907) | (4,353) | (9,211) | (8,278) | ||
Allocated general and administrative | (4,941) | (5,210) | (9,870) | (10,657) | ||
Segment profit (loss) | (9,235) | (7,532) | (15,928) | (10,887) | ||
Other significant items: | ||||||
Impairment of assets | 18 | 18 | ||||
Depreciation and amortization | 142 | 123 | 284 | 320 | ||
Segment assets | ||||||
Other investments | 24,062 | 24,062 | 17,909 | |||
Total portfolio assets | 24,062 | 24,062 | $ 17,909 | |||
Corporate/Other | Other income | ||||||
Segment Profit (Loss) | ||||||
Revenues | $ 1,726 | $ 54 | $ 1,914 | $ 5,764 | ||
[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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Segment profit | $ (8,071) | $ (21,127) | $ (19,182) | $ (31,796) |
Less: Recovery of (provision for) loan losses | (22,578) | 2,158 | (22,713) | 5,800 |
Less: Recovery of (provision for) losses on net investment in leases | (99) | (779) | (380) | (780) |
Less: Impairment of assets | (1,768) | 0 | (1,768) | (257) |
Less: Stock-based compensation expense | 17,923 | (14,791) | 30,350 | (20,299) |
Less: Depreciation and amortization | (1,338) | (1,573) | (2,695) | (3,974) |
Less: Income tax expense | 0 | (619) | (3) | 79 |
Less: Loss on early extinguishment of debt, net | (116,563) | 0 | (117,991) | 0 |
Less: Net income from discontinued operations | 25,315 | 797,688 | 47,800 | |
Net income (loss) | $ (132,494) | $ (11,416) | $ 663,306 | $ (3,427) |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 04, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Subsequent events | ||||||||
Loss on early extinguishment of debt | $ 116,563 | $ 0 | $ 117,991 | $ 0 | ||||
3.125% Senior Convertible Notes | ||||||||
Subsequent events | ||||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | ||||
3.125% Senior Convertible Notes | Unsecured notes | ||||||||
Subsequent events | ||||||||
Aggregate principal of debt converted and retired | $ 194,000 | |||||||
Stated interest rate | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||
Common shares issued in in conversion of convertible notes | 13,750 | |||||||
Payments to debt holders in conjunction with the conversion and retirement of debt | $ 14,000 | |||||||
Net increase in shareholders equity on conversion of convertible notes | 180,600 | |||||||
Loss on early extinguishment of debt | $ 118,100 | |||||||
Subsequent Events | SAFE | ||||||||
Subsequent events | ||||||||
Proceeds from sale of ground lease | $ 36,000 | |||||||
Subsequent Events | 3.125% Senior Convertible Notes | Unsecured notes | ||||||||
Subsequent events | ||||||||
Aggregate principal of debt converted and retired | $ 47,900 | |||||||
Stated interest rate | 3.125% | |||||||
Common shares issued in in conversion of convertible notes | 2,000 | |||||||
Payments to debt holders in conjunction with the conversion and retirement of debt | $ 24,300 | |||||||
Net increase in shareholders equity on conversion of convertible notes | 24,200 | |||||||
Loss on early extinguishment of debt | $ 6,100 |