Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 10, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-38122 | ||
Entity Registrant Name | Safehold Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 30-0971238 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | SAFE | ||
Security Exchange Name | NYSE | ||
Entity Public Float | $ 762 | ||
Common Stock, Shares, Outstanding | 62,397,416 | ||
Entity Central Index Key | 0001688852 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Net investment in sales-type leases | [1] | $ 3,106,599 | $ 2,412,716 |
Ground Lease receivables | [1] | 1,374,716 | 796,252 |
Real estate, at cost | [1] | 740,971 | 740,971 |
Less: accumulated depreciation | [1] | (34,371) | (28,343) |
Real estate, net | [1] | 706,600 | 712,628 |
Real estate-related intangible assets, net | [1] | 217,795 | 224,182 |
Total real estate, net and real estate-related intangible assets, net | [1] | 924,395 | 936,810 |
Equity investments in Ground Leases | [1] | 180,388 | 173,374 |
Cash and cash equivalents | [1] | 20,066 | 29,619 |
Restricted cash | [1] | 28,324 | 8,897 |
Deferred operating lease income receivable | [1] | 148,870 | 117,311 |
Deferred expenses and other assets, net | [1] | 67,564 | 40,747 |
Total assets | [1] | 5,850,922 | 4,515,726 |
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities | [1],[2] | 100,357 | 67,592 |
Real estate-related intangible liabilities, net | [1] | 64,591 | 65,429 |
Debt obligations, net | [1] | 3,521,359 | 2,697,503 |
Total liabilities | [1] | 3,686,307 | 2,830,524 |
Commitments and contingencies (refer to Note 9) | [1] | ||
Redeemable noncontrolling interests (refer to Note 3) | [1] | 19,011 | |
Safehold Inc. shareholders' equity: | |||
Common stock, $0.01 par value, 400,000 shares authorized, 62,397 and 56,619 shares issued and outstanding as of December 31, 2022 and 2021, respectively | [1] | 624 | 566 |
Additional paid-in capital | [1] | 1,986,417 | 1,663,324 |
Retained earnings | [1] | 151,226 | 59,368 |
Accumulated other comprehensive loss | [1] | 3,281 | (40,980) |
Total Safehold Inc. shareholders' equity | [1] | 2,141,548 | 1,682,278 |
Noncontrolling interests | [1] | 4,056 | 2,924 |
Total equity | [1] | 2,145,604 | 1,685,202 |
Total liabilities, redeemable noncontrolling interests and equity | [1] | 5,850,922 | 4,515,726 |
Other Liability, Due to Related Party | |||
Liabilities: | |||
Accounts payable, accrued expenses and other liabilities | $ 8,500 | $ 6,200 | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). As of December 31, 2022 and 2021, includes $8.5 million and $6.2 million, respectively, due to related parties. |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000 | 400,000 |
Common stock, shares issued (in shares) | 62,397 | 56,619 |
Common stock, shares outstanding (in shares) | 62,397 | 56,619 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues: | ||||
Interest income from sales-type leases | [1] | $ 202,258 | $ 118,824 | $ 81,844 |
Operating lease income | 66,817 | 67,667 | 72,340 | |
Other income | 1,238 | 523 | 1,243 | |
Total revenues | 270,313 | 187,014 | 155,427 | |
Costs and expenses: | ||||
Interest expense | 128,969 | 79,707 | 64,354 | |
Real estate expense | 3,110 | 2,663 | 2,480 | |
Depreciation and amortization | 9,613 | 9,562 | 9,433 | |
General and administrative | [2] | 38,614 | 28,753 | 22,733 |
Other expense | 10,189 | 868 | 243 | |
Total costs and expenses | 190,495 | 121,553 | 99,243 | |
Gain on sale of net investment in lease | 55,811 | |||
Income from operations before other items | 135,629 | 65,461 | 56,184 | |
Loss on early extinguishment of debt | 0 | (216) | 0 | |
Earnings from equity method investments | 9,055 | 6,279 | 3,304 | |
Selling profit from sales-type leases | 1,833 | |||
Net income | 144,684 | 73,357 | 59,488 | |
Net income attributable to noncontrolling interests | (9,261) | (234) | (194) | |
Net income attributable to Safehold Inc. common shareholders | $ 135,423 | $ 73,123 | $ 59,294 | |
Net income | ||||
Basic (dollars per share) | $ 2.21 | $ 1.35 | $ 1.17 | |
Diluted (dollars per shares) | $ 2.21 | $ 1.35 | $ 1.17 | |
Weighted average number of common shares: | ||||
Basic (in shares) | 61,170 | 54,167 | 50,688 | |
Diluted (in shares) | 61,170 | 54,180 | 50,697 | |
Ground Leases with iStar | ||||
Revenues: | ||||
Interest income from sales-type leases | $ 2,100 | $ 8,400 | $ 8,200 | |
Expenses with Related Party, Equity Based Compensation | ||||
Costs and expenses: | ||||
General and administrative | $ 34,300 | $ 24,100 | $ 19,400 | |
[1] For the years ended December 31, 2022, 2021 and 2020, the Company recorded $2.1 million, $8.4 million and $8.2 million, respectively, of “Interest income from sales-type leases” in its consolidated statements of operations from its Ground Leases with iStar Inc. (“iStar”). For the years ended December 31, 2022, 2021 and 2020, includes $34.3 million, $24.1 million and $19.4 million, respectively, of general and administrative expenses incurred to related parties that includes management fees, expense reimbursements to the Company’s Manager and equity-based compensation . |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 144,684 | $ 73,357 | $ 59,488 |
Other comprehensive income (loss): | |||
Reclassification of losses on derivatives into earnings | 3,888 | 3,191 | 1,680 |
Unrealized gain on derivatives | 40,373 | 13,290 | (20,018) |
Other comprehensive income (loss) | 44,261 | 16,481 | (18,338) |
Comprehensive income | 188,945 | 89,838 | 41,150 |
Comprehensive income attributable to noncontrolling interests | (9,261) | (234) | (194) |
Comprehensive income attributable to Safehold Inc. | $ 179,684 | $ 89,604 | $ 40,956 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | ||
Balance at the beginning of the period at Dec. 31, 2019 | $ 478 | $ 1,132,603 | $ (2,146) | $ (39,123) | $ 1,486 | $ 1,093,298 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 59,294 | 194 | 59,488 | |||||
Issuance of common stock, net / amortization | 54 | 279,504 | 543 | 280,101 | ||||
Investor Unit conversion (refer to Note 11) | (33,203) | (33,203) | ||||||
Dividends declared | (18,338) | (18,338) | ||||||
Change in accumulated other comprehensive income (loss) | (43) | (43) | ||||||
Balance at the end of the period at Dec. 31, 2020 | 532 | 1,412,107 | 23,945 | (57,461) | 2,180 | 1,381,303 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 73,123 | 234 | 73,357 | |||||
Issuance of common stock, net / amortization | 34 | 251,217 | (736) | 451 | 250,966 | |||
Dividends declared | (36,964) | (36,964) | ||||||
Change in accumulated other comprehensive income (loss) | 16,481 | 16,481 | ||||||
Contributions from noncontrolling interests | 105 | 105 | ||||||
Distributions to noncontrolling interests | (46) | (46) | ||||||
Balance at the end of the period at Dec. 31, 2021 | 566 | 1,663,324 | 59,368 | (40,980) | 2,924 | 1,685,202 | [1] | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||
Net income | 647 | |||||||
Contributions from noncontrolling interests, net | 18,829 | |||||||
Distributions to noncontrolling interests | (636) | |||||||
Additional paid in capital attributable to redeemable noncontrolling interests | 171 | |||||||
Balance at the end of the period at Dec. 31, 2022 | [1] | 19,011 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 135,423 | 8,614 | 144,037 | |||||
Issuance of common stock, net / amortization | 58 | 323,264 | 413 | 323,735 | ||||
Dividends declared | (43,565) | (43,565) | ||||||
Change in accumulated other comprehensive income (loss) | 44,261 | 44,261 | ||||||
Contributions from noncontrolling interests | 18 | 18 | ||||||
Distributions to noncontrolling interests | (7,913) | (7,913) | ||||||
Additional paid in capital attributable to redeemable noncontrolling interests | (171) | (171) | ||||||
Balance at the end of the period at Dec. 31, 2022 | $ 624 | $ 1,986,417 | $ 151,226 | $ 3,281 | $ 4,056 | $ 2,145,604 | [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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share (usd per share) | $ 0.701 | $ 0.67224 | $ 0.6427 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 144,684 | $ 73,357 | $ 59,488 |
Adjustments to reconcile net income to cash flows from operating activities: | |||
Depreciation and amortization | 9,613 | 9,562 | 9,433 |
Stock-based compensation expense | 1,546 | 1,750 | 1,744 |
Deferred operating lease income | (31,558) | (33,727) | (35,004) |
Non-cash interest income from sales-type leases | (73,991) | (43,808) | (30,131) |
Non-cash interest expense | 13,641 | 11,772 | 10,986 |
Amortization of real estate-related intangibles, net | 2,305 | 2,424 | 2,648 |
Loss on early extinguishment of debt | 0 | 216 | 0 |
Earnings from equity method investments | (9,055) | (6,279) | (3,304) |
Distributions from operations of equity method investments | 2,047 | 1,973 | 1,213 |
Selling profit from sales-type leases | (1,833) | ||
Gain on sale of net investment in lease | (55,811) | ||
Amortization of premium, discount and deferred financing costs on debt obligations, net | 5,384 | 3,771 | 2,281 |
Non-cash management fees | 20,252 | 14,865 | 12,684 |
Other operating activities | 4,677 | 4,469 | 2,201 |
Changes in assets and liabilities: | |||
Changes in deferred expenses and other assets, net | 11,044 | (286) | (143) |
Changes in accounts payable, accrued expenses and other liabilities | 20,074 | (11,309) | 1,615 |
Cash flows provided by operating activities | 64,852 | 26,917 | 35,711 |
Cash flows from investing activities: | |||
Acquisitions of real estate | (57,879) | ||
Origination/acquisition of net investment in sales-type leases and Ground Lease receivables | (1,278,406) | (1,247,980) | (474,083) |
Contributions to equity method investments | (7) | (39,455) | |
Funding reserves received from Ground Lease tenant net of disbursements | 296 | ||
Net proceeds received from sale of net investment in lease | 135,529 | ||
Deposits on Ground Lease investments | (2,250) | (2,083) | 1,550 |
Other investing activities | (1,115) | 1,527 | (229) |
Cash flows used in investing activities | (1,145,953) | (1,287,991) | (530,641) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 309,160 | 243,345 | 271,206 |
Proceeds from debt obligations | 1,830,000 | 1,848,439 | 693,970 |
Repayments of debt obligations | (1,005,000) | (830,000) | (377,000) |
Payments for deferred financing costs | (5,136) | (14,063) | (6,784) |
Dividends paid to common shareholders | (42,187) | (35,947) | (32,002) |
Payment of offering costs | (5,190) | (8,710) | (4,756) |
Payments for withholding taxes upon vesting of stock-based compensation | (970) | ||
Distributions to noncontrolling interests | (8,549) | (46) | (43) |
Contributions from noncontrolling interests | 19,000 | 105 | |
Other financing activities | (153) | 24 | |
Cash flows provided by financing activities | 1,090,975 | 1,203,123 | 544,615 |
Changes in cash, cash equivalents and restricted cash | 9,874 | (57,951) | 49,685 |
Cash, cash equivalents and restricted cash at beginning of period | 38,516 | 96,467 | 46,782 |
Cash, cash equivalents and restricted cash at end of period | $ 48,390 | $ 38,516 | $ 96,467 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Reconciliation of cash and cash equivalents and restricted cash presented on the consolidated statements of cash flows | |||||
Cash and cash equivalents | $ 20,066 | [1] | $ 29,619 | [1] | $ 56,948 |
Restricted cash | 28,324 | [1] | 8,897 | [1] | 39,519 |
Total cash and cash equivalents and restricted cash | 48,390 | 38,516 | 96,467 | ||
Supplemental disclosure of cash flow information: | |||||
Cash paid for interest | 93,853 | 59,034 | 48,772 | ||
Supplemental disclosure of non-cash investing and financing activity: | |||||
Acquisition of real estate | 157 | ||||
Assumption of other liabilities/debt obligations | 157 | ||||
Non-cash interest accrued to debt obligations | 1,988 | ||||
Dividends declared to common shareholders | 11,050 | 9,647 | 8,636 | ||
Accrued finance costs | $ 54 | 89 | 8 | ||
Accrued offering costs | 50 | $ 47 | |||
Caret Unit conversion (refers to Note 11) | $ 747 | ||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Note 1—Business and Organization Business 30 The Company intends to target investments in long-term Ground Leases in which: (i) the cost of its Ground Lease represents 30% to 45% of the combined value of the land and buildings and improvements thereon as if there was no Ground Lease on the land ("Combined Property Value"); (ii) the ratio of property net operating income to the Ground Lease payment due the Company ("Ground Rent Coverage") is between 2.0x to 4.5x , and for this purpose the Company uses estimates of the stabilized property net operating income if it does not receive current tenant information and for properties under construction or in transition, in each case based on leasing activity at the property and available market information, including leasing activity at comparable properties in the relevant market; and (iii) the Ground Lease contains contractual rent escalation clauses or percentage rent that participates in gross revenues generated by the commercial real estate on the land. A Ground Lease lessor (the Company) typically has the right to regain possession of its land and take ownership of the buildings and improvements thereon upon tenant default and the termination of the Ground Lease on account of such default. The Company believes that the Ground Lease structure provides an opportunity for potential value accretion through the reversion to the Company, as the Ground Lease owner, of the buildings and improvements on the land at the expiration or earlier termination of the lease, for no additional consideration from the Company. The Company is managed by SFTY Manager, LLC (the "Manager"), a wholly-owned subsidiary of iStar, the Company’s largest shareholder, pursuant to a management agreement. The Company has no employees, as the Manager provides all services to it. The Company draws on the extensive investment origination and sourcing platform of its Manager to actively promote the benefits of the Ground Lease structure to prospective Ground Lease tenants. Organization Merger with iStar Merger Agreement Merger New SAFE As discussed further below, shortly before the closing of the Merger, iStar intends to separate its remaining legacy non-ground lease assets and businesses into a separate public company (“ Star Holdings Spin-Off Conditions to the Merger The consummation of the Merger is subject to the satisfaction or waiver of certain closing conditions, including: (i) the approval of the Company’s stockholders, (ii) the approval of iStar’s stockholders, (iii) completion of the Spin-Off, (iv) the approval of the shares of STAR Common Stock to be issued in the Merger for listing on the NYSE, (v) the absence of any temporary restraining order, injunction or other order of any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the reverse stock split or the Merger, (vi) generation of certain cash proceeds, (vii) the receipt of certain tax opinions by iStar and the Company that the Merger will qualify as a reorganization under the Internal Revenue Code and that iStar and the Company each qualifies as a REIT for federal income tax purposes, (viii) the accuracy of certain representations and warranties of iStar and the Company contained in the Merger Agreement and the compliance by the parties with the covenants contained in the Merger Agreement (subject to customary materiality qualifiers), and (ix) other conditions specified in the Merger Agreement. Conditions to the Spin-Off Completion of the Spin-Off is subject to: (i) completion of the financing documents; (ii) the satisfaction or waiver of relevant conditions to the consummation of the Merger; (iii) effectiveness of a registration statement on Securities and Exchange Commission (“SEC”) Form 10; (iv) the absence of an injunction or law preventing the consummation of the Spin-Off, the distribution and the transactions related thereto; and (v) other customary closing conditions. Other Merger related transactions iStar has entered into an agreement (the “ MSD Stock Purchase Agreement MSD Partners MSD Stock Purchase MSD Partners has also subscribed to purchase 100,000 Caret units (refer to Note 11) from the Company for an aggregate purchase price of $20.0 million (the “ MSD Caret Purchase Star Holdings will be capitalized in part with an 8.0%, four-year term loan from New SAFE having an initial principal amount of $100.0 million or such other amount as the parties may agree prior to the closing of the Merger, as well as up to $140.0 million of bank debt from Morgan Stanley Bank, N.A. which will be secured by $400.0 million in shares of the Company. New SAFE will enter into a management agreement with Star Holdings, under which it will continue to operate and pursue the orderly monetization of Star Holdings assets. Star Holdings will pay to New SAFE an annual management fee of $25.0 million in year one, $15.0 million in year two, $10.0 million in year three and $5.0 million in year four and 2.0% of the gross book value of Star Holdings assets, excluding shares of the Company’s common stock, for each annual term thereafter. New SAFE and Star Holdings will also enter into a governance agreement that will place certain restrictions on the transfer and voting of the shares of New SAFE owned by Star Holdings, and a registration rights agreement under which New SAFE will agree to register such shares for resale in accordance with applicable securities laws. The Company and iStar have entered into a voting agreement pursuant to which iStar has agreed to vote its shares representing 41.9% of the outstanding SAFE Common Stock to approve the Merger and take certain other actions, including voting against any alternative acquisition proposal or other proposal which could reasonably be expected to materially delay, postpone or materially adversely affect the consummation of the transactions contemplated by the Merger Agreement. In accordance with the terms of the existing stockholders’ agreement between SAFE and STAR, the remainder of the SAFE Common Stock owned by iStar will be voted in the same manner and proportion as the votes cast by the remaining shareholders of SAFE. The voting agreement and the obligations thereunder terminate upon the termination of the Merger Agreement in accordance with its terms. As noted above, the Merger and related transactions are subject to a number of conditions, several of which are outside the Company's control; therefore, there can be no assurance that the Merger and related transactions will occur within the time frame currently expected by the parties, or at all. The foregoing descriptions of the Merger and the Merger Agreement and the related transactions and agreements do not purport to be complete and are subject to, and qualified in their entirety by, the full text of such agreements. Please see the Company's filings with the SEC for additional information, including copies of such agreements. iStar has covenanted to redeem all of its outstanding preferred stock at the liquidation preference per share plus accrued and unpaid dividends and to retire all of its senior unsecured notes in connection with the Merger. iStar’s trust preferred securities will remain outstanding at New SAFE. Note 2—Basis of Presentation and Principles of Consolidation Basis of Presentation Principles of Consolidation Consolidated VIEs |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Note 1—Business and Organization Business 30 The Company intends to target investments in long-term Ground Leases in which: (i) the cost of its Ground Lease represents 30% to 45% of the combined value of the land and buildings and improvements thereon as if there was no Ground Lease on the land ("Combined Property Value"); (ii) the ratio of property net operating income to the Ground Lease payment due the Company ("Ground Rent Coverage") is between 2.0x to 4.5x , and for this purpose the Company uses estimates of the stabilized property net operating income if it does not receive current tenant information and for properties under construction or in transition, in each case based on leasing activity at the property and available market information, including leasing activity at comparable properties in the relevant market; and (iii) the Ground Lease contains contractual rent escalation clauses or percentage rent that participates in gross revenues generated by the commercial real estate on the land. A Ground Lease lessor (the Company) typically has the right to regain possession of its land and take ownership of the buildings and improvements thereon upon tenant default and the termination of the Ground Lease on account of such default. The Company believes that the Ground Lease structure provides an opportunity for potential value accretion through the reversion to the Company, as the Ground Lease owner, of the buildings and improvements on the land at the expiration or earlier termination of the lease, for no additional consideration from the Company. The Company is managed by SFTY Manager, LLC (the "Manager"), a wholly-owned subsidiary of iStar, the Company’s largest shareholder, pursuant to a management agreement. The Company has no employees, as the Manager provides all services to it. The Company draws on the extensive investment origination and sourcing platform of its Manager to actively promote the benefits of the Ground Lease structure to prospective Ground Lease tenants. Organization Merger with iStar Merger Agreement Merger New SAFE As discussed further below, shortly before the closing of the Merger, iStar intends to separate its remaining legacy non-ground lease assets and businesses into a separate public company (“ Star Holdings Spin-Off Conditions to the Merger The consummation of the Merger is subject to the satisfaction or waiver of certain closing conditions, including: (i) the approval of the Company’s stockholders, (ii) the approval of iStar’s stockholders, (iii) completion of the Spin-Off, (iv) the approval of the shares of STAR Common Stock to be issued in the Merger for listing on the NYSE, (v) the absence of any temporary restraining order, injunction or other order of any court of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the reverse stock split or the Merger, (vi) generation of certain cash proceeds, (vii) the receipt of certain tax opinions by iStar and the Company that the Merger will qualify as a reorganization under the Internal Revenue Code and that iStar and the Company each qualifies as a REIT for federal income tax purposes, (viii) the accuracy of certain representations and warranties of iStar and the Company contained in the Merger Agreement and the compliance by the parties with the covenants contained in the Merger Agreement (subject to customary materiality qualifiers), and (ix) other conditions specified in the Merger Agreement. Conditions to the Spin-Off Completion of the Spin-Off is subject to: (i) completion of the financing documents; (ii) the satisfaction or waiver of relevant conditions to the consummation of the Merger; (iii) effectiveness of a registration statement on Securities and Exchange Commission (“SEC”) Form 10; (iv) the absence of an injunction or law preventing the consummation of the Spin-Off, the distribution and the transactions related thereto; and (v) other customary closing conditions. Other Merger related transactions iStar has entered into an agreement (the “ MSD Stock Purchase Agreement MSD Partners MSD Stock Purchase MSD Partners has also subscribed to purchase 100,000 Caret units (refer to Note 11) from the Company for an aggregate purchase price of $20.0 million (the “ MSD Caret Purchase Star Holdings will be capitalized in part with an 8.0%, four-year term loan from New SAFE having an initial principal amount of $100.0 million or such other amount as the parties may agree prior to the closing of the Merger, as well as up to $140.0 million of bank debt from Morgan Stanley Bank, N.A. which will be secured by $400.0 million in shares of the Company. New SAFE will enter into a management agreement with Star Holdings, under which it will continue to operate and pursue the orderly monetization of Star Holdings assets. Star Holdings will pay to New SAFE an annual management fee of $25.0 million in year one, $15.0 million in year two, $10.0 million in year three and $5.0 million in year four and 2.0% of the gross book value of Star Holdings assets, excluding shares of the Company’s common stock, for each annual term thereafter. New SAFE and Star Holdings will also enter into a governance agreement that will place certain restrictions on the transfer and voting of the shares of New SAFE owned by Star Holdings, and a registration rights agreement under which New SAFE will agree to register such shares for resale in accordance with applicable securities laws. The Company and iStar have entered into a voting agreement pursuant to which iStar has agreed to vote its shares representing 41.9% of the outstanding SAFE Common Stock to approve the Merger and take certain other actions, including voting against any alternative acquisition proposal or other proposal which could reasonably be expected to materially delay, postpone or materially adversely affect the consummation of the transactions contemplated by the Merger Agreement. In accordance with the terms of the existing stockholders’ agreement between SAFE and STAR, the remainder of the SAFE Common Stock owned by iStar will be voted in the same manner and proportion as the votes cast by the remaining shareholders of SAFE. The voting agreement and the obligations thereunder terminate upon the termination of the Merger Agreement in accordance with its terms. As noted above, the Merger and related transactions are subject to a number of conditions, several of which are outside the Company's control; therefore, there can be no assurance that the Merger and related transactions will occur within the time frame currently expected by the parties, or at all. The foregoing descriptions of the Merger and the Merger Agreement and the related transactions and agreements do not purport to be complete and are subject to, and qualified in their entirety by, the full text of such agreements. Please see the Company's filings with the SEC for additional information, including copies of such agreements. iStar has covenanted to redeem all of its outstanding preferred stock at the liquidation preference per share plus accrued and unpaid dividends and to retire all of its senior unsecured notes in connection with the Merger. iStar’s trust preferred securities will remain outstanding at New SAFE. Note 2—Basis of Presentation and Principles of Consolidation Basis of Presentation Principles of Consolidation Consolidated VIEs |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3—Summary of Significant Accounting Policies Significant Accounting Policies Real estate Capitalization and depreciation—Certain improvements and replacements are capitalized when they extend the useful life of the asset. Repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight- line method over the estimated useful life, which is generally 40 years for facilities, the shorter of the remaining lease term or expected life for tenant improvements and the remaining useful life of the facility for facility improvements. Purchase price allocation—The Company’s acquisitions of properties are generally accounted for as an acquisition of assets. For asset acquisitions, the Company recognizes and measures identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree based on their relative fair values and acquisition-related costs are capitalized and recorded in "Real estate, net," "Real estate-related intangible assets, net" and "Real estate-related intangible liabilities, net" on the Company’s consolidated balance sheets. The Company accounts for its acquisition of properties by recording the purchase price of tangible and intangible assets and liabilities acquired based on their relative fair values. The value of the tangible assets, consisting of land, buildings, building improvements and tenant improvements is determined as if these assets are vacant. Intangible assets may include the value of lease incentive assets, above-market leases, below-market Ground Lease assets and in-place leases, which are each recorded at their relative fair values and included in "Real estate-related intangible assets, net" on the Company’s consolidated balance sheets. Intangible liabilities may include the value of below-market leases, which are recorded at their relative fair values and included in "Real estate-related intangible liabilities, net" on the Company’s consolidated balance sheets. In-place leases are amortized over the remaining non-cancelable term of the lease and the amortization expense is included in "Depreciation and amortization" in the Company’s consolidated statements of operations. Lease incentive assets and above-market (or below-market) lease value are amortized as a reduction of (or increase to) operating lease income over the remaining non-cancelable term of each lease. Below-market Ground Lease assets are amortized to real estate expense over the remaining non-cancelable term of the lease. The Company may also engage in sale/leaseback transactions whereby the Company executes a net lease with the occupant simultaneously with the purchase of the asset. These transactions are accounted for as asset acquisitions. Impairments—The Company reviews real estate assets for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The value of a long-lived asset held for use is impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the asset (taking into account the anticipated holding period of the asset) are less than its carrying value. Such estimate of cash flows considers factors such as expected future operating income trends, as well as the effects of demand, competition and other economic factors. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the estimated fair value of the asset and reflected as an adjustment to the basis of the asset. Impairments of real estate assets, if any, are recorded in the Company’s consolidated statements of operations. The Company did not record any impairments for the periods presented. Net Investment in Sales-type Leases and Ground Lease Receivables Reserve for losses in net investment in sales-type leases and Ground Lease receivables— The Company evaluates its net investment in sales-type leases and Ground Lease receivables for impairment under ASC 310 - Receivables. As part of the Company’s process for monitoring the credit quality of its net investment in sales-type leases and Ground Lease receivables, it performs a quarterly assessment for each of its net investment in sales-type leases and Ground Lease receivables. The Company considers a net investment in sales-type lease or Ground Lease receivable to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the Ground Lease. As of December 31, 2022, all of the Company’s net investment in sales-type leases and Ground Lease receivables were performing in accordance with the terms of the respective leases. Any potential reserve for losses in net investment in sales-type leases and Ground Lease receivables will reflect management’s estimate of losses inherent in the portfolio as of the balance sheet date. If the Company determines that the collateral fair value less costs to sell is less than the carrying value of a collateral-dependent receivable, the Company will record a reserve. The reserve, if applicable, will be increased (decreased) in the Company’s consolidated statements of operations and will be decreased by charge-offs. The Company’s policy is to charge off a receivable when it determines, based on a variety of factors, that all commercially reasonable means of recovering the receivable balance have been exhausted. This may occur at different times, including when the Company receives cash or other assets in a pre-foreclosure sale or takes control of the underlying collateral in full satisfaction of the receivable upon foreclosure or deed-in-lieu, or when the Company has otherwise ceased significant collection efforts. The Company considers circumstances such as the foregoing to be indicators that the final steps in the receivable collection process have occurred and that a receivable is uncollectible. At this point, a loss is confirmed and the receivable and related reserve will be charged off. The Company has one portfolio segment represented by acquiring, managing and capitalizing Ground Leases, whereby it utilizes a uniform process for determining its reserve for losses on net investment in sales-type leases and Ground Lease receivables. Interest Income from Sales-type Leases Equity Investments in Ground Leases The Company periodically reviews equity method investments for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. The Company will record an impairment charge to the extent that the estimated fair value of an investment is less than its carrying value and the Company determines the impairment is other-than-temporary. Impairment charges, if applicable, are recorded in "Earnings from equity method investments" in the Company’s consolidated statements of operations. Cash and cash equivalents Restricted cash— Operating lease income records percentage rent as operating lease income when earned. During the years ended December 31, 2022, 2021 and 2020, the Company recorded $1.3 million, $0.3 million and $3.8 million, respectively, of percentage rent from operating leases. Operating lease income also includes the amortization of finite lived intangible assets and liabilities, which are amortized over the period during which the assets or liabilities are expected to contribute directly or indirectly to the future cash flows of the property acquired. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any deferred operating lease income receivable balance will be written off. If and when lease payments that were previously not considered probable of collection become probable, the Company will move back to the straight-line method of income recognition and record an adjustment to operating lease income in that period as if the lease was always on the straight-line method of income recognition. Other income Earnings per share Deferred expenses and other assets Deferred financing fees Stock-based compensation During the third quarter 2018, the Company adopted an equity incentive plan providing for grants of interests (called "Caret units") in a subsidiary of the Operating Partnership intended to constitute profits interests within the meaning of relevant Internal Revenue Service guidance. The Company’s shareholders approved the plan in the second quarter of 2019. Grants under the plan are subject to graduated vesting based on time and hurdles of the Company’s common stock price (refer to Note 11). Expense from Caret units is recorded in "General and administrative" in the Company’s consolidated statements of operations and "Noncontrolling interests" on the Company’s consolidated balance sheet. Income taxes least 90% of its net taxable income to qualify as a REIT, the Company intends to distribute all of its net taxable income, if any, and eliminate federal and state taxes on undistributed net taxable income. Certain states may impose minimum franchise taxes. In addition, the Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its net taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under federal tax laws. The Company’s tax years from 2019 through 2021 remain subject to examination by major tax jurisdictions. The Company formed a taxable REIT subsidiary ("TRS") during the year ended December 31, 2018. The TRS had no activity during the periods presented, and accordingly, no provision for income taxes was required. During the years ended December 31, 2022, 2021 and 2020, the Company paid $0.5 million, $0.1 million and $0.1 million, respectively, in taxes. Derivative instruments and hedging activity Variable interest entities Fair Values The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions): As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Net investment in sales-type leases (1) $ 3,107 $ 3,236 $ 2,413 $ 2,704 Ground Lease receivables (1) 1,375 1,501 796 893 Cash and cash equivalents (2) 20 20 30 30 Restricted cash (2) 28 28 9 9 Liabilities Debt obligations, net (1) Level 1 738 573 738 741 Level 3 2,783 2,358 1,960 2,118 Total debt obligations, net 3,521 2,931 2,698 2,859 (1) The fair value of the Company’s net investment in sales-type leases and Ground Lease receivables are classified as Level 3 within the fair value hierarchy. The fair value of the Company’s debt obligations traded in secondary markets are classified as Level 1 within the fair value hierarchy and the fair value of the Company’s debt obligations not traded in secondary markets 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 and are classified as Level 1 within the fair value hierarchy. Redeemable Noncontrolling Interests The Company classifies these redeemable Caret units in accordance with Accounting Standards Codification (“ASC”) 480: Distinguishing Liabilities from Equity. ASC 480-10-S99-3A requires that equity securities redeemable at the option of the holder be classified outside of permanent stockholders’ equity. The Company classifies redeemable Caret units as “Redeemable noncontrolling interests” in its consolidated balance sheets and consolidated statements of changes in equity. The redeemable noncontrolling interest’s carrying amount is equal to the higher of (i) the initial carrying amount, increased or decreased for the redeemable noncontrolling interest’s share of net income or loss and dividends; or (ii) the redemption value. In the case of the Company’s redeemable Caret units, the carrying amount equals both the initial carrying amount and the redemption value. During the year ended December 31, 2022, redeemable noncontrolling interests were allocated $0.6 million of net income (refer to Note 4). New Accounting Pronouncements ASU 2016-13 its net investment in sales-type leases and its Ground Lease receivables, which will be recorded as a decrease equity In May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ("ASU 2019-04") to clarify certain accounting topics from previously issued ASUs, including ASU 2016-13. ASU 2019-04 addresses certain aspects of ASU 2016-13, including but not limited to, accrued interest receivable, loan recoveries, interest rate projections for variable-rate financial instruments and expected prepayments. ASU 2019-04 provides alternatives that allow entities to measure credit losses on accrued interest separate from credit losses on the principal portion of a loan, clarifies that entities should include expected recoveries in the measurement of credit losses, allows entities to consider future interest rates when measuring credit losses and can elect to adjust effective interest rates used to discount expected cash flows for expected loan prepayments. ASU 2019-04 is effective upon the adoption of ASU 2016-13. Management is currently evaluating the impact of ASU 2019-04 on the Company’s consolidated financial statements. |
Net Investment In Sales-type Le
Net Investment In Sales-type Leases and Ground Lease Receivables | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Net Investment In Sales-type Leases and Ground Lease Receivables | Note 4—Net Investment in Sales-type Leases and Ground Lease Receivables The Company classifies certain of its Ground Leases as sales-type leases and records the leases within "Net investment in sales-type leases" on the Company’s consolidated balance sheets and records interest income in "Interest income from sales-type leases" in the Company’s consolidated statements of operations. In addition, the Company may enter into transactions whereby it acquires land and enters into Ground Leases directly with the seller. These Ground Leases qualify as sales-type leases and, as such, do not qualify for sale leaseback accounting and are accounted for as financing receivables in accordance with ASC 310 - Receivables and are included in "Ground Lease receivables" on the Company’s consolidated balance sheets. The Company records interest income from Ground Lease receivables in "Interest income from sales-type leases" in the Company’s consolidated statements of operations. In September 2021, the Company entered into a lease assignment and modification with one of its tenants under an operating lease. In connection with this transaction, the lease was assigned to a new tenant and the maturity of the lease was extended by 3.5 years to September 2120. In July 2022, the Company, pursuant to an agreement with iStar and upon certain construction related conditions being met, acquired an existing Ground Lease from iStar for $36.4 million inclusive of closing costs and was recorded in “Net investment in sales-type leases” and “Real estate-related intangible assets, net” on the Company’s consolidated balance sheet. In September 2022, the Company sold a Ground Lease to a third-party for $136.0 million and recognized a gain of $55.8 million in “Gain on sale of net investment in lease” in the Company’s consolidated statements of operations for the year ended December 31, 2022. $9.5 million of the gain was attributable to noncontrolling interests, of which $0.7 million was attributable to redeemable noncontrolling interests. In December 2022, $8.5 million of proceeds from this transaction were distributed to noncontrolling interests inclusive of the portion distributed to redeemable noncontrolling interests. The Company’s net investment in sales-type leases were comprised of the following ($ in thousands): December 31, 2022 December 31, 2021 Total undiscounted cash flows $ 29,586,227 $ 23,707,424 Unguaranteed estimated residual value 2,900,218 2,319,761 Present value discount (29,379,846) (23,614,469) Net investment in sales-type leases $ 3,106,599 $ 2,412,716 The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the year ended December 31, 2022 ($ in thousands): Net Investment in Ground Lease Sales-type Leases Receivables Total Beginning balance $ 2,412,716 $ 796,252 $ 3,208,968 Sales (76,701) — (76,701) Origination/acquisition/fundings (1) 717,480 557,577 1,275,057 Accretion 53,104 20,887 73,991 Ending balance (2) $ 3,106,599 $ 1,374,716 $ 4,481,315 (1) The net investment in sales-type leases is initially measured at the present value of the fixed and determinable lease payments, including any guaranteed or unguaranteed estimated residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. For newly originated or acquired Ground Leases, the Company’s estimate of residual value equals the fair value of the land at lease commencement. (2) As of December 31, 2022, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.1% and 5.4% , respectively. As of December 31, 2022, the weighted average remaining life of the Company’s 33 Ground Lease receivables was 98.9 years. Future Minimum Lease Payments under Sales-type Leases Fixed Bumps Fixed Bumps with with Inflation Fixed Percentage Adjustments Bumps Rent Total 2023 $ 97,116 $ 2,229 $ 579 $ 99,924 2024 100,960 2,256 586 103,802 2025 102,914 2,283 586 105,783 2026 104,861 2,311 586 107,758 2027 106,754 2,339 586 109,679 Thereafter 28,376,157 583,455 99,669 29,059,281 Total undiscounted cash flows $ 28,888,762 $ 594,873 $ 102,592 $ 29,586,227 During the years ended December 31, 2022, 2021 and 2020, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands): Net Investment Ground in Sales-type Lease Year Ended December 31, 2022 Leases Receivables Total Cash $ 90,487 $ 37,780 $ 128,267 Non-cash 53,104 20,887 73,991 Total interest income from sales-type leases $ 143,591 $ 58,667 $ 202,258 Year Ended December 31, 2021 Cash $ 52,091 $ 22,925 $ 75,016 Non-cash 30,899 12,909 43,808 Total interest income from sales-type leases $ 82,990 $ 35,834 $ 118,824 Year Ended December 31, 2020 Cash $ 36,098 $ 15,615 $ 51,713 Non-cash 21,186 8,945 30,131 Total interest income from sales-type leases $ 57,284 $ 24,560 $ 81,844 |
Real Estate and Real Estate-Rel
Real Estate and Real Estate-Related Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Real Estate and Real Estate-Related Intangibles | Note 5—Real Estate and Real Estate-Related Intangibles The Company’s real estate assets consist of the following ($ in thousands): As of December 31, 2022 December 31, 2021 Land and land improvements, at cost $ 547,739 $ 547,739 Buildings and improvements, at cost 193,232 193,232 Less: accumulated depreciation (34,371) (28,343) Total real estate, net $ 706,600 $ 712,628 Real estate-related intangible assets, net 217,795 224,182 Total real estate, net and real estate-related intangible assets, net $ 924,395 $ 936,810 Real estate-related intangible assets, net consist of the following items ($ in thousands): As of December 31, 2022 Gross Accumulated Carrying Intangible Amortization Value Above-market lease assets, net (1) $ 186,002 $ (15,254) $ 170,748 In-place lease assets, net (2) 65,345 (19,011) 46,334 Other intangible assets, net 750 (37) 713 Total $ 252,097 $ (34,302) $ 217,795 As of December 31, 2021 Gross Accumulated Carrying Intangible Amortization Value Above-market lease assets, net (1) $ 186,002 $ (12,119) $ 173,883 In-place lease assets, net (2) 65,102 (15,523) 49,579 Other intangible assets, net 750 (30) 720 Total $ 251,854 $ (27,672) $ 224,182 (1) Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases. (2) In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases. The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Income Statement For the Years Ended December 31, Intangible asset Location 2022 2021 2020 Above-market lease assets (decrease to income) Operating lease income $ 3,135 $ 3,255 $ 3,310 In-place lease assets (decrease to income) Depreciation and amortization 3,576 3,525 3,396 Other intangible assets (decrease to income) Operating lease income 8 8 8 The estimated expense from the amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands): (1) Year Amount 2023 $ 6,682 2024 6,634 2025 6,634 2026 3,725 2027 3,725 (1) As of December 31, 2022, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 79.9 years. Real estate-related intangible liabilities, net consist of the following items ($ in thousands): As of December 31, 2022 Gross Accumulated Carrying Intangible Amortization Value Below-market lease liabilities (1) $ 68,618 $ (4,027) $ 64,591 As of December 31, 2021 Gross Accumulated Carrying Intangible Amortization Value Below-market lease liabilities (1) $ 68,618 $ (3,189) $ 65,429 (1) Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases. The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Income Statement For the Years Ended December 31, Intangible liability Location 2022 2021 2020 Below-market lease liabilities (increase to income) Operating lease income $ 838 $ 838 $ 669 Future Minimum Operating Lease Payments Fixed Bumps Fixed with Bumps with Inflation- Inflation Fixed Percentage Percentage Year Linked Adjustments Bumps Rent Rent Total 2023 $ 5,783 $ 17,347 $ 2,213 $ 11,018 $ 368 $ 36,729 2024 5,802 17,677 2,247 11,018 398 37,142 2025 5,802 18,004 2,313 11,018 398 37,535 2026 5,802 18,370 2,357 986 398 27,913 2027 5,802 18,755 2,388 986 398 28,329 Thereafter 434,803 4,308,109 433,110 15,826 286 5,192,134 |
Equity Investments in Ground Le
Equity Investments in Ground Leases | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Equity Investments in Ground Leases | Note 6—Equity Investments in Ground Leases In June 2021, the Company acquired a 29.2% noncontrolling equity interest in a Ground Lease at an office property in New York City. As of December 31, 2022 and 2021, the Company’s investment in the Ground Lease was $47.3 million and $42.1 million, respectively. During the years ended December 31, 2022 and 2021, the Company recorded $5.7 million and $2.9 million, respectively, in earnings from equity method investments from the Ground Lease. In August 2019, the Company formed a venture with a sovereign wealth fund that is an existing shareholder of the Company to acquire the existing Ground Lease at 425 Park Avenue in New York City. The venture acquired the Ground Lease in November 2019. The Company has a 54.8% noncontrolling equity interest in the venture and iStar is the manager of the venture. As of December 31, 2022 and 2021, the Company’s investment in the venture was $133.1 million and $131.3 million, respectively. During the years ended December 31, 2022, 2021 and 2020, the Company recorded $3.4 million, $3.4 million and $3.3 million, respectively, in earnings (losses) from the venture. |
Deferred Expenses and Other Ass
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities | Note 7—Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of December 31, 2022 December 31, 2021 Operating lease right-of-use asset (1) $ 26,312 $ 27,435 Interest rate hedge assets 29,346 — Deferred finance costs, net (2) 4,461 7,875 Other assets 2,664 2,898 Purchase deposits 4,333 2,083 Leasing costs, net 448 456 Deferred expenses and other assets, net $ 67,564 $ 40,747 (1) Operating lease right-of-use asset (and operating lease liability below) relates to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.4 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company’s Ground Lease tenant at the property pays this expense directly under the terms of a master lease. Operating lease right-of-use asset is amortized on a straight-line basis over the term of the lease and is recorded in "Real estate expense" in the Company’s consolidated statements of operations. During each of the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.4 million in "Real estate expense" and $0.4 million in "Other income" from its operating lease right-of-use asset. The related operating lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the Company’s incremental secured borrowing rate for a similar asset estimated to be 5.5% . (2) Accumulated amortization of deferred finance costs was $5.7 million and $2.2 million as of December 31, 2022 and 2021, respectively. Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of December 31, 2022 December 31, 2021 Interest payable $ 55,459 $ 31,601 Other liabilities (1) 17,639 14,998 Dividends declared and payable 11,067 9,690 Operating lease liability 5,471 5,605 Management fee payable 5,301 4,271 Accrued expenses (2) 5,420 1,427 Accounts payable, accrued expenses and other liabilities $ 100,357 $ 67,592 (1) As of December 31, 2022 and 2021, other liabilities includes $3.1 million and $1.9 million, respectively, due to the Manager for allocated payroll costs and costs it paid on the Company’s behalf. (2) As of December 31, 2022 and 2021, accrued expenses primarily includes accrued legal, audit and property expenses. |
Debt Obligations, net
Debt Obligations, net | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Obligations, net | Note 8—Debt Obligations, net The Company’s outstanding debt obligations consist of the following ($ in thousands): As of Interest Scheduled December 31, 2022 December 31, 2021 Rate (1) Maturity Date (2) Secured credit financing: Mortgages $ 1,498,113 $ 1,498,113 3.99 % April 2027 to November 2069 Total secured credit financing (3) 1,498,113 1,498,113 Unsecured financing: 2.80% senior notes 400,000 400,000 2.80 % June 2031 2.85% senior notes 350,000 350,000 2.85 % January 2032 3.98% senior notes 475,000 — 3.98 % February 2052 5.15% senior notes 151,988 — 5.15 % May 2052 Unsecured Revolver 690,000 490,000 LIBOR plus 1.00 % March 2026 Total unsecured financing 2,066,988 1,240,000 Total debt obligations 3,565,101 2,738,113 Debt premium, discount and deferred financing costs, net (43,742) (40,610) Total debt obligations, net $ 3,521,359 $ 2,697,503 (1) For mortgages, represents the weighted average interest rate of consolidated mortgage debt in effect over the life of the mortgage debt and excludes the effect of debt premium, discount and deferred financing costs. As of December 31, 2022, the weighted average cash interest rate for the Company’s consolidated mortgage debt, based on interest rates in effect at that date, was 3.26% . The difference between the weighted average interest rate and the weighted average cash interest rate is recorded to interest payable within "Accounts payable, accrued expenses, and other liabilities" on the Company’s consolidated balance sheets. As of December 31, 2022, the Company’s combined weighted average interest rate and combined weighted average cash interest rate of the Company’s consolidated mortgage debt, the mortgage debt of the Company’s unconsolidated ventures (applying the Company’s percentage interest in the ventures - refer to Note 6) and the Company’s unsecured senior notes were 3.74% and 3.19% , respectively. (2) Represents the extended maturity date for all debt obligations. (3) As of December 31, 2022, $2.0 billion of real estate, at cost, net investment in sales-type leases and Ground Lease receivables served as collateral for the Company’s debt obligations . Mortgages Unsecured Notes In November 2021, the Operating Partnership (as issuer) and the Company (as guarantor), issued $350.0 million aggregate principal amount of 2.85% senior notes due January 2032 (the “2.85% Notes”). The 2.85% Notes were issued at 99.123% of par. The Company may redeem the 2.85% Notes in whole at any time or in part from time to time prior to October 15, 2031, at the Company’s option and sole discretion, at a redemption price equal to the greater of: (i) 100% of the principal amount of the 2.85% Notes being redeemed; and (ii) a make-whole premium calculated in accordance with the indenture, plus, in each case, accrued and unpaid interest thereon to, but not including, the applicable redemption date. If the 2.85% Notes are redeemed on or after October 15, 2031, the redemption price will be equal to 100% of the principal amount of the 2.85% Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date. In January 2022, the Operating Partnership (as issuer) and the Company (as guarantor), issued $475.0 million aggregate principal amount of privately-placed 3.98% senior notes due February 2052 (the “3.98% Notes”). The Operating Partnership elected to draw these funds in March 2022. The Company may, at its option, prepay at any time all, or from time to time any part of, the 3.98% Notes, in an amount not less than 5% of the aggregate principal amount of the 3.98% Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the applicable make-whole amount calculated in accordance with the indenture, for such tranche determined for the prepayment date with respect to such principal amount; provided, that, so long as no default or event of default shall then exist, at any time on or after November 15, 2051, the Company may, at its option, prepay all or any part of the 3.98% Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date, without any make-whole amount. In May 2022, the Operating Partnership (as issuer) and the Company (as guarantor), issued $150.0 million aggregate principal amount of privately-placed 5.15% senior notes due May 2052 (the “5.15% Notes”). The structure of the 5.15% Notes features a stairstep coupon rate in which the Company will pay cash interest at a rate of 2.50% in years 1 through 10, 3.75% in years 11 through 20, and 5.15% in years 21 through 30. The difference between the 5.15% stated rate and the cash interest rate will accrue in each semi-annual payment period and be paid in kind by adding such accrued interest to the outstanding principal balance, to be repaid at maturity in May 2052. The Company may, at its option, prepay at any time all, or from time to time any part of, the 5.15% Notes, in an amount not less than 5% of the aggregate principal amount of the 5.15% Notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the applicable make-whole amount calculated in accordance with the indenture; provided, that, so long as no default or event of default shall then exist, at any time on or after February 13, 2052, the Company may, at its option, prepay all or any part of the 5.15% Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date, without any make-whole amount. Unsecured Revolver 12-month Debt Covenants ratio Future Scheduled Maturities Secured (1) Unsecured Total 2023 $ — $ — $ — 2024 — — — 2025 — — — 2026 — 690,000 690,000 2027 237,000 — 237,000 Thereafter 1,261,113 1,376,988 2,638,101 Total principal maturities 1,498,113 2,066,988 3,565,101 Debt premium, discount and deferred financing costs, net (27,086) (16,656) (43,742) Total debt obligations, net $ 1,471,027 $ 2,050,332 $ 3,521,359 (1) As of December 31, 2022, the Company’s weighted average maturity for its secured mortgages was 28.5 years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9—Commitments and Contingencies Unfunded Commitments The Company also has unfunded forward commitments related to agreements that it entered into for the acquisition of new Ground Leases or additions to existing Ground Leases if certain conditions are met (refer to Note 13). These commitments may also include leasehold improvement allowances that will be funded to the Ground Lease tenants when certain conditions are met. As of December 31, 2022, the Company had an aggregate $398.9 million of such commitments. There can be no assurance that the conditions to closing for these transactions will be satisfied and that the Company will acquire the Ground Leases or fund the leasehold improvement allowances Legal Proceedings —The Company evaluates developments in legal proceedings that could require a liability to be accrued and/or disclosed. Based on its current knowledge, and after consultation with legal counsel, the Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company’s consolidated financial statements; however, the Company is a party to the following legal proceeding: On December 23, 2022, following the announcement of the Merger, a purported stockholder of the Company filed a complaint against the Company and each member of the Board of Directors alleging violations of the federal securities laws in a case captioned Ryan O’Dell v. Safehold Inc. et al ., No. 22-cv-10862 (SDNY) (“ O’Dell Action ”). Such complaint alleges that the Registration Statement filed on December 16, 2022 omits material information with respect to the Merger and that, as a result, all defendants violated Section 14(a) of the Exchange Act, Rule 14a-9, and 17 C.F.R. § 244.100, and that each member of the Board of Directors violated Section 20(a) of the Exchange Act. The complaint seeks injunctive relief, rescission in the event the Merger is consummated or alternatively rescissory damages, plaintiff’s attorneys’ and experts’ fees and costs, and other such relief that the court deems just and proper. On February 10, 2023, a second purported stockholder of the Company filed a complaint against the Company and each member of the Board of Directors raising similar allegations about the Schedule 14A Definitive Proxy statement filed on January 31, 2023 and seeking similar relief as in the O’Dell Action , with such case captioned John Thompson v. Safehold Inc. et. al , No. 23-cv-01164 (SDNY) (“ Thompson Action ”). In addition, two purported stockholders of the Company sent demand letters and one purported stockholder sent a draft complaint alleging similar deficiencies in the Registration Statement and Proxy Statement, as the case may be, as those alleged in the O’Dell Action and Thompson Action . |
Risk Management and Derivatives
Risk Management and Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Risk Management and Derivatives | Note 10—Risk Management and Derivatives In the normal course of its ongoing business operations, the Company encounters credit risk. Credit risk is the risk of default on the Company’s leases that result from a tenant’s inability or unwillingness to make contractually required payments. Risk concentrations Although the Company’s Ground Leases are geographically diverse and the tenants operate in a variety of industries and property types, to the extent the Company has a significant concentration of interest income from sales-type leases or operating lease income from any tenant, the inability of that tenant to make its payment could have a material adverse effect on the Company. The Company did not have a significant concentration of operating lease income from any tenant for the periods presented. Derivative instruments and hedging activity The Company recognizes derivatives as either assets or liabilities on the Company’s consolidated balance sheets at fair value. Interest rate hedge assets are recorded in "Deferred expenses and other assets, net" and interest rate hedge liabilities are recorded in "Accounts payable, accrued expenses and other liabilities" on the Company’s consolidated balance sheets. If certain conditions are met, a derivative may be specifically designated as a hedge of the exposure to changes in the fair value of a recognized asset or liability, a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For the Company’s derivatives designated and qualifying as cash flow hedges, changes in the fair value of the derivatives are reported as a component of accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same periods during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. For the Company’s derivatives not designated as hedges, the changes in the fair value of the derivatives are reported in "Interest expense" in the Company’s consolidated statements of operations. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks but do not meet the strict hedge accounting requirements. The table below presents the Company’s derivatives as well as their classification on the consolidated balance sheets as of December 31, 2022 and 2021 ($ in thousands): (1) December 31, 2022 December 31, 2021 Fair Fair Balance Sheet Derivative Type Value (2) Value (2) Location Assets Interest rate swaps (3) $ 29,346 $ — Deferred expenses and other assets, net Total $ 29,346 $ — (1) During the years ended December 31, 2022, 2021 and 2020, the Company recorded $40.4 million, $13.3 million and ($20.0) million, respectively, of unrealized gains (losses) in accumulated other comprehensive income (loss). (2) 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 within the fair value hierarchy. Over the next 12 months, the Company expects that $3.8 million related to cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" as an increase to interest expense. (3) During the year ended December 31, 2022, the Company received $11.0 million in settlement of certain interest rate hedges. During the year ended December 31, 2021, the Company paid $19.9 million to terminate certain interest rate hedges. Credit Risk-Related Contingent Features The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations and the consolidated statements of comprehensive income for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Amount of Gain Amount of Gain (Loss) Recognized in (Loss) Reclassified Location of Gain (Loss) Accumulated Other from Accumulated When Recognized Comprehensive Other Comprehensive Derivatives Designated in Hedging Relationships in Income Income Income into Earnings For the Year Ended December 31, 2022 Interest rate swaps Interest expense $ 40,373 $ (3,888) For the Year Ended December 31, 2021 Interest rate swaps Interest expense $ 13,290 $ (3,191) For the Year Ended December 31, 2020 Interest rate swaps Interest expense $ (20,018) $ (1,680) |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Note 11—Equity Common Stock iStar has also purchased shares of the Company’s common stock through private placements with the Company in connection with the Company’s public offerings. In March 2022, the Company sold shares of its common stock in a public offering for gross proceeds of $ million. Concurrently with the public offering, the Company sold $ million in shares, or shares, of its common stock to iStar in a private placement. The Company incurred approximately million of offering costs in connection with these transactions which were recorded as a reduction to additional paid-in capital. the public offering, the Company sold $50.0 million in shares, or 657,894 shares, of its common stock to iStar in a private placement. The Company incurred approximately $8.0 million of offering costs in connection with these transactions which were recorded as a reduction to additional paid-in capital. In December 2022, iStar distributed approximately 6.63 million shares of the Company’s common stock to iStar shareholders in the form of a non-cash dividend. As of December 31, 2022, iStar owned 54.3% of the Company’s common stock; however, its discretionary voting power is limited to 41.9% as a result of limitations on its voting power contained in a stockholder’s agreement entered into in connection with its purchase of newly designated limited partnership units (the “Investor Units”) in January 2019. In May 2019, after approval of the Company’s shareholders, the Investor Units were exchanged for shares of the Company’s common stock on a one-for-one basis. In February 2021, the Company and its affiliates, entered into an at-the-market equity offering (the “ATM”) pursuant to which the Company may sell shares of its common stock up to an aggregate purchase price of $250.0 million. Through December 31, 2022, the Company sold 12,881 shares at an average net price of $81.45 per share, paid $15,977 of offering costs and raised $1.0 million of net proceeds pursuant to the ATM. Proceeds from the ATM were used for general corporate purposes. As of December 31, 2022, the Company had $248.9 million of aggregate purchase price remaining under its ATM. Equity Plans As of December 31, 2022, 12% of the awards granted in March 2020 had vested and 88% of the awards were forfeited. In August 2021, in order to ensure that the interests of the non-management directors are best aligned with the interests of the Company’s common shareholders, each of the non-management directors (or, in the case of two directors, their affiliated trusts to which the Caret units had been issued) entered into agreements to exchange their Caret units that were granted at the time of plan adoption into shares of the Company’s common stock. Effective December 1, 2021, each non-management director (or, in the case of two directors, their affiliated trusts to which the Caret units had been issued) exchanged 3,750 Caret units for 2,546 shares of the Company’s common stock. The Company’s board of directors approved the exchanges having considered the report of a leading independent valuation firm. The Company adopted the 2017 Equity Incentive Plan to provide equity incentive opportunities to members of the Manager’s management team and employees who perform services for the Company, the Company’s non-management directors, advisers, consultants and other personnel. The 2017 Equity Incentive Plan provides for grants of stock options, shares of restricted common stock, phantom shares, dividend equivalent rights and other equity-based awards, including long-term incentive plan units. In the second quarter 2020, the Company issued 22,000 fully-vested shares with a fair value of $1.0 million, or $46.94 per share, to its directors who are not employees of the Manager or iStar in consideration for their annual services as directors. In the second quarter of 2021, the Company issued 16,000 fully-vested shares with a fair value of $1.1 million, or $69.86 per share, to its directors who are not employees of the Manager or iStar in consideration for their annual services as directors. In the second quarter 2022, the Company issued 26,000 fully-vested shares with a fair value of $1.1 million, or $43.51 per share, to its directors who are not employees of the Manager or iStar in consideration for their annual services as directors. Dividends will accrue as and when dividends are declared by the Company on shares of its common stock but will not be paid unless and until the restricted stock units vest and are settled. As of December 31, 2022 , an aggregate of 698,500 shares remain available for issuance pursuant to future awards under the 2017 Equity Incentive Plan. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $1.1 million, $1.3 million and $1.2 million, respectively, in stock-based compensation expense related to the 2017 Equity Incentive Plan, which is classified within "General and administrative" in the Company’s consolidated statements of operations. Accumulated Other Comprehensive Income (Loss) Noncontrolling Interests Dividends |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12—Earnings Per Share EPS is calculated by dividing net income attributable to common shareholders by the weighted average number of shares outstanding for the period. The following tables present a reconciliation of net income used in the basic and diluted EPS calculations ($ in thousands, except for per share data): For the Years Ended December 31, 2022 2021 2020 Net income $ 144,684 $ 73,357 $ 59,488 Net income attributable to noncontrolling interests (9,261) (234) (194) Net income attributable to Safehold Inc. common shareholders for basic and diluted earnings per common share $ 135,423 $ 73,123 $ 59,294 For the Years Ended December 31, 2022 2021 2020 Earnings attributable to common shares: Numerator for basic and diluted earnings per share: Net income attributable to Safehold Inc. common shareholders - basic $ 135,423 $ 73,123 $ 59,294 Net income attributable to Safehold Inc. common shareholders - diluted $ 135,423 $ 73,123 $ 59,294 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 61,170 54,167 50,688 Add: Effect of assumed shares under treasury stock method for restricted stock units — 13 9 Weighted average common shares outstanding for diluted earnings per common share (1) 61,170 54,180 50,697 Basic and diluted earnings per common share: Net income attributable to Safehold Inc. common shareholders - basic $ 2.21 $ 1.35 $ 1.17 Net income attributable to Safehold Inc. common shareholders - diluted $ 2.21 $ 1.35 $ 1.17 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13—Related Party Transactions The Company is externally managed by an affiliate of iStar, the Company’s largest shareholder. iStar has been an active real estate investor for over 20 years and has an extensive network for sourcing investments, which includes relationships with brokers, corporate tenants and developers that it has established over its long operating history. Management Agreement A summary of the terms of the management agreement is below: Manager SFTY Manager, LLC, a wholly-owned subsidiary of iStar Inc. Management Fee Annual fee of 1.00% of total equity (up to $1.5 billion) Management Fee Consideration At the discretion of the Company’s independent directors, payment will be made in cash or in shares of the Company’s common stock (valued at the greater of: (i) the volume weighted average market price during a specified pricing period; or (ii) the initial public offering price of $20.00 per share) Lock-up Restriction from selling common stock received for management fees for two years from the date of such issuance (restriction will terminate in the event of and effective with the termination of the management agreement) Incentive Fee None Term Non-terminable through June 30, 2023, except for cause. Automatic annual renewals thereafter, subject to non-renewal upon certain findings by the Company’s independent directors and payment of termination fee. Termination Fee 3x prior year’s management fee During the years ended December 31, 2022, 2021 and 2020, the Company recorded $20.3 million, $14.9 million and $12.7 million, respectively, in management fees to the Manager. These management fees are recorded in "General and administrative" in the Company’s consolidated statements of operations. Expense Reimbursements The Company pays, or reimburses the Manager for, certain of the Company’s operating expenses as well as the costs of personnel performing certain legal, accounting, finance, due diligence tasks and other services, in each case except those specifically required to be borne or elected not to be charged by the Manager under the management agreement. Historically, pursuant to the Manager’s option under the management agreement, the Manager 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 Manager 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 years ended December 31, 2022, 2021 and 2020, the Company was allocated $12.5 million, $7.5 million and $5.0 million, respectively, in expenses from the Manager. These expenses are recorded in "General and administrative" in the Company’s consolidated statements of operations. Acquisitions and Commitments iStar has participated in certain of the Company’s investment transactions, as the Company’s tenant or either as a seller of land or by providing financing to the Company’s Ground Lease tenants. Following is a list of transactions in which the Company and iStar or other persons deemed to be related parties have participated for the periods presented. These transactions were approved by the Company’s independent directors in accordance with the Company’s policy with respect to related party transactions. In July 2022, the Company, pursuant to an agreement with iStar and upon certain construction related conditions being met, acquired an existing Ground Lease from iStar for $36.4 million inclusive of closing costs (refer to Note 4). In June 2022, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a mixed-use property. The Company also committed to provide an additional $35.0 million to the Ground Lease tenant if certain construction and leasing milestones are met. A venture in which iStar owns a noncontrolling equity interest and an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling equity interest committed to provide a $105.0 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid the venture $5.0 million of additional consideration in connection with this investment. In April 2022, the Company acquired an existing Ground Lease from iStar for $9.0 million. In March 2022, the Company acquired land for a purchase price of $28.5 million and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a hotel property. One of the Company’s independent directors has an indirect ownership interest in the entity that is the Ground Lease tenant and controls the company that indirectly manages that entity. In March 2022, the Company paid iStar $0.3 million to terminate a purchase option that allowed iStar to purchase the land at the expiration of its Ground Lease with the Company. iStar sold the leasehold to a third party in March 2022. In March 2022, the Company acquired three land properties from iStar for a total purchase price of $122.0 million and simultaneously structured and entered into three Ground Lease’s directly with the Ground Lease tenant. In February 2022, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of a life science development property. A venture in which iStar owns a noncontrolling equity interest and an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling equity interest committed to provide a $130.0 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid the venture $9.0 million of additional consideration in connection with this investment. In December 2021, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of an existing multifamily property. Prior to the recapitalization, iStar and the Ground Lease tenant owned the property through a venture. As part of the recapitalization, the Ground Lease tenant acquired iStar’s equity interest in the venture and repaid a mezzanine loan iStar had provided to the venture in August 2018. In November 2021, the Company entered into an agreement pursuant to which it agreed to acquire land and a related Ground Lease originated by iStar 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 iStar to achieve the greater of a 1.25x multiple or a 12% return on its investment. In addition, the Ground Lease documents contain future funding obligations to the Ground Lease tenant of approximately $51.8 million of leasehold improvement allowance upon achievement of certain milestones. In December 2021, iStar contributed the Ground Lease to an investment fund it formed that targets the origination and acquisition of Ground Leases for commercial real estate projects that are in a pre-development phase. iStar has a noncontrolling interest in the investment fund and an affiliate of an existing shareholder (which is affiliated with one of the Company’s independent directors) has a noncontrolling interest in the investment fund. The terms of the Company’s commitment under the agreement did not change upon iStar’s contribution of the Ground Lease to the investment fund. There can be no assurance that the conditions to closing will be satisfied and that the Company will acquire the Ground Lease from the investment fund. In June 2021, the Company acquired from iStar a purchase option agreement for $1.2 million, which amount was equal to the deposit previously made by iStar under such option agreement plus assumption of iStar’s out of pocket costs and expenses in connection with entering into such option agreement. Under the option agreement, the Company has the right to acquire for $215.0 million a property that is under a separate option for the benefit of a third party, whereby such third party has the right to enter into a Ground Lease and develop approximately 1.1 million square feet of office space. In June 2021, the Company entered into two agreements pursuant to each of which it agreed to acquire land and a related Ground Lease originated by iStar 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 iStar 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 the Company upon acquisition. In January 2022, iStar sold the Ground Leases to an investment fund in which iStar owns a noncontrolling interest and an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling interest. There can be no assurance that the conditions to closing will be satisfied and that the Company will acquire the properties and Ground Leases from the investment fund. In March 2021, the Company entered into an agreement pursuant to which, subject to certain conditions being met, it agreed to acquire 100% of the limited liability company interests in the owner of a fee estate subject to a Ground Lease on which a multi-family project is currently being constructed. In March 2021, iStar originated a $75.0 million construction loan commitment to the Ground Lease tenant and acquired the Ground Lease for $16.1 million. iStar subsequently sold the loan commitment to an entity in which it has a noncontrolling interest and an existing shareholder (which is affiliated with one of the Company’s independent directors) owns a noncontrolling interest . In February 2021, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of an existing hotel property. iStar provided a $50.0 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid iStar $1.9 million of additional consideration in connection with this investment. In October 2020, the Company acquired land and simultaneously structured and entered into a Ground Lease as part of the Ground Lease tenant’s recapitalization of an existing multi-family property. iStar provided a $22.5 million loan to the Company’s Ground Lease tenant for the recapitalization of the leasehold. The Company paid iStar $2.3 million of additional consideration in connection with this investment. In September 2020, the Company closed on the acquisition of a Ground Lease pursuant to a purchase agreement that it entered into with iStar in October 2017 to acquire land subject to a Ground Lease on which a luxury multi-family project is currently being constructed for a purchase price of $34.0 million. iStar committed to provide a $80.5 million construction loan to the ground lessee. In June 2020, the Company acquired the fee interest in an office condominium and simultaneously structured and entered into a Ground Lease with the condominium’s tenant. The tenant simultaneously acquired the leasehold interest in the office condominium. The Ground Lease has a term of 99 years. The tenant was a venture in which iStar owned a 51.9% equity interest. In the fourth quarter 2021, iStar acquired an additional 47.5% equity interest in the venture. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14—Subsequent Events In January 2023, the Company closed on a new $500 million unsecured revolving credit facility. The new facility has a current borrowing rate of adjusted SOFR plus 100 basis points, with a maturity of July 31, 2025. The Company also amended its Unsecured Revolver (refer to Note 8) primarily to transition from LIBOR to SOFR. Both facilities are subject to a pricing grid based on the Company’s credit ratings. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SEC Schedule III, Real Estate and Accumulated Depreciation | Schedule III—Real Estate and Accumulated Depreciation As of December 31, 2022 ($ in thousands) Cost Gross Amount Carried Initial Cost to Company Capitalized at Close of Period Depreciable Building and Subsequent to Building and Accumulated Date Life Location Encumbrances Land Improvements Acquisition Land Improvements Total (1) Depreciation Acquired (Years) Detroit, MI $ 31,961 (2) $ 29,086 $ — $ — $ 29,086 $ — $ 29,086 $ — 2017 N/A Dallas, TX 3,736 (2) 1,954 — — 1,954 — 1,954 — 2017 N/A Dallas, TX 4,151 (2) 2,751 — — 2,751 — 2,751 — 2017 N/A Atlanta, GA 7,577 (2) 4,097 — — 4,097 — 4,097 — 2017 N/A Milwaukee, WI 3,633 (2) 4,638 51,323 — 4,638 51,323 55,961 7,378 2017 40 (3) Washington, DC 5,190 (2) 1,484 — — 1,484 — 1,484 — 2017 N/A Minneapolis, MN 1,452 (2) 716 — — 716 — 716 — 2017 N/A Durango, CO 16,604 (2) 1,415 17,080 — 1,415 17,080 18,495 3,120 2017 35 (3) Rohnert Park, CA 19,300 (2) 5,869 13,752 — 5,869 13,752 19,621 3,121 2017 32 (3) Salt Lake City, UT 55,312 (2) 8,573 40,583 — 8,573 40,583 49,156 6,828 2017 34 (3) San Diego, CA 38,084 (2) 5,077 24,096 — 5,077 24,096 29,173 4,283 2017 33 (3) Seattle, WA 40,000 (2) 7,813 45,562 — 7,813 45,562 53,375 9,544 2017 30 (3) Los Angeles, CA 57,936 (2) 72,836 — — 72,836 — 72,836 — 2017 N/A Los Angeles, CA 62,764 (2) 68,140 — — 68,140 — 68,140 — 2017 N/A Atlanta, GA — 6,300 — — 6,300 — 6,300 — 2017 N/A Washington, DC 23,100 (2) 27,354 — — 27,354 — 27,354 — 2018 N/A Orlando, FL 7,800 (2) 6,626 — — 6,626 — 6,626 — 2018 N/A Raleigh-Durham, NC 11,940 (2) 4,502 — — 4,502 — 4,502 — 2018 N/A Atlanta, GA 9,882 (2) 8,478 — — 8,478 — 8,478 — 2018 N/A San Diego, CA — 8,168 — — 8,168 — 8,168 — 2018 N/A Washington, DC 10,000 (2) 15,217 — — 15,217 — 15,217 — 2018 N/A Phoenix, AZ — 5,996 — — 5,996 — 5,996 — 2018 N/A Washington, DC — 21,478 — — 21,478 — 21,478 — 2018 N/A Miami, FL 6,000 (2) 9,170 — — 9,170 — 9,170 — 2018 N/A Miami, FL 2,471 (2) 3,735 — — 3,735 — 3,735 — 2018 N/A Washington, DC 95,000 (2) 121,100 — — 121,100 — 121,100 — 2018 N/A Nashville, TN 17,500 (2) 13,505 — — 13,505 — 13,505 — 2018 N/A Portland, OR — — 3,641 — — 3,641 — 3,641 — 2019 N/A San Antonio, TX 10,000 (2) 2,103 836 — 2,103 836 2,939 97 2019 40 Riverside, CA — 11,399 — — 11,399 — 11,399 — 2019 N/A San Ramon, CA — 19,635 — — 19,635 — 19,635 — 2020 N/A Washington, DC — 44,883 — — 44,883 — 44,883 — 2020 N/A Total $ 541,393 $ 547,739 $ 193,232 $ — $ 547,739 $ 193,232 $ 740,971 $ 34,371 (1) The aggregate cost for Federal income tax purposes was approximately $1.0 billion as of December 31, 2022. (2) Pledged as collateral under mortgages. (3) These properties have land improvements with depreciable lives from 7 to 12 years . The following table reconciles real estate for the years ended December 31, 2022, 2021 and 2020: For the Years Ended December 31, 2022 2021 2020 Beginning balance $ 740,971 $ 752,420 $ 687,902 Acquisitions — — 64,518 Transfer to net investment in sales-type lease — (11,449) — Ending balance $ 740,971 $ 740,971 $ 752,420 The following table reconciles accumulated depreciation for the years ended December 31, 2022, 2021 and 2020: For the Years Ended December 31, 2022 2021 2020 Beginning balance $ 28,343 $ 22,314 $ 16,286 Additions 6,028 6,029 6,028 Ending balance $ 34,371 $ 28,343 $ 22,314 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Combination and Consolidation | Principles of Consolidation |
Real estate | Real estate Capitalization and depreciation—Certain improvements and replacements are capitalized when they extend the useful life of the asset. Repair and maintenance costs are expensed as incurred. Depreciation is computed using the straight- line method over the estimated useful life, which is generally 40 years for facilities, the shorter of the remaining lease term or expected life for tenant improvements and the remaining useful life of the facility for facility improvements. |
Purchase price allocation | Purchase price allocation—The Company’s acquisitions of properties are generally accounted for as an acquisition of assets. For asset acquisitions, the Company recognizes and measures identifiable assets acquired, liabilities assumed and any noncontrolling interest in the acquiree based on their relative fair values and acquisition-related costs are capitalized and recorded in "Real estate, net," "Real estate-related intangible assets, net" and "Real estate-related intangible liabilities, net" on the Company’s consolidated balance sheets. The Company accounts for its acquisition of properties by recording the purchase price of tangible and intangible assets and liabilities acquired based on their relative fair values. The value of the tangible assets, consisting of land, buildings, building improvements and tenant improvements is determined as if these assets are vacant. Intangible assets may include the value of lease incentive assets, above-market leases, below-market Ground Lease assets and in-place leases, which are each recorded at their relative fair values and included in "Real estate-related intangible assets, net" on the Company’s consolidated balance sheets. Intangible liabilities may include the value of below-market leases, which are recorded at their relative fair values and included in "Real estate-related intangible liabilities, net" on the Company’s consolidated balance sheets. In-place leases are amortized over the remaining non-cancelable term of the lease and the amortization expense is included in "Depreciation and amortization" in the Company’s consolidated statements of operations. Lease incentive assets and above-market (or below-market) lease value are amortized as a reduction of (or increase to) operating lease income over the remaining non-cancelable term of each lease. Below-market Ground Lease assets are amortized to real estate expense over the remaining non-cancelable term of the lease. The Company may also engage in sale/leaseback transactions whereby the Company executes a net lease with the occupant simultaneously with the purchase of the asset. These transactions are accounted for as asset acquisitions. |
Impairments | Impairments—The Company reviews real estate assets for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The value of a long-lived asset held for use is impaired if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the asset (taking into account the anticipated holding period of the asset) are less than its carrying value. Such estimate of cash flows considers factors such as expected future operating income trends, as well as the effects of demand, competition and other economic factors. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the asset over the estimated fair value of the asset and reflected as an adjustment to the basis of the asset. Impairments of real estate assets, if any, are recorded in the Company’s consolidated statements of operations. The Company did not record any impairments for the periods presented. |
Net Investment in Sales-type Leases and Ground Lease Receivables | Net Investment in Sales-type Leases and Ground Lease Receivables |
Reserve for losses in net investment in sales-type leases and Ground Lease receivables | Reserve for losses in net investment in sales-type leases and Ground Lease receivables— The Company evaluates its net investment in sales-type leases and Ground Lease receivables for impairment under ASC 310 - Receivables. As part of the Company’s process for monitoring the credit quality of its net investment in sales-type leases and Ground Lease receivables, it performs a quarterly assessment for each of its net investment in sales-type leases and Ground Lease receivables. The Company considers a net investment in sales-type lease or Ground Lease receivable to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the Ground Lease. As of December 31, 2022, all of the Company’s net investment in sales-type leases and Ground Lease receivables were performing in accordance with the terms of the respective leases. Any potential reserve for losses in net investment in sales-type leases and Ground Lease receivables will reflect management’s estimate of losses inherent in the portfolio as of the balance sheet date. If the Company determines that the collateral fair value less costs to sell is less than the carrying value of a collateral-dependent receivable, the Company will record a reserve. The reserve, if applicable, will be increased (decreased) in the Company’s consolidated statements of operations and will be decreased by charge-offs. The Company’s policy is to charge off a receivable when it determines, based on a variety of factors, that all commercially reasonable means of recovering the receivable balance have been exhausted. This may occur at different times, including when the Company receives cash or other assets in a pre-foreclosure sale or takes control of the underlying collateral in full satisfaction of the receivable upon foreclosure or deed-in-lieu, or when the Company has otherwise ceased significant collection efforts. The Company considers circumstances such as the foregoing to be indicators that the final steps in the receivable collection process have occurred and that a receivable is uncollectible. At this point, a loss is confirmed and the receivable and related reserve will be charged off. The Company has one portfolio segment represented by acquiring, managing and capitalizing Ground Leases, whereby it utilizes a uniform process for determining its reserve for losses on net investment in sales-type leases and Ground Lease receivables. |
Interest Income from Sales-type Leases | Interest Income from Sales-type Leases |
Equity Investments In Ground Leases | Equity Investments in Ground Leases The Company periodically reviews equity method investments for impairment in value whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. The Company will record an impairment charge to the extent that the estimated fair value of an investment is less than its carrying value and the Company determines the impairment is other-than-temporary. Impairment charges, if applicable, are recorded in "Earnings from equity method investments" in the Company’s consolidated statements of operations. |
Cash and cash equivalents | Cash and cash equivalents |
Restricted cash | Restricted cash— |
Operating lease income | Operating lease income records percentage rent as operating lease income when earned. During the years ended December 31, 2022, 2021 and 2020, the Company recorded $1.3 million, $0.3 million and $3.8 million, respectively, of percentage rent from operating leases. Operating lease income also includes the amortization of finite lived intangible assets and liabilities, which are amortized over the period during which the assets or liabilities are expected to contribute directly or indirectly to the future cash flows of the property acquired. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any deferred operating lease income receivable balance will be written off. If and when lease payments that were previously not considered probable of collection become probable, the Company will move back to the straight-line method of income recognition and record an adjustment to operating lease income in that period as if the lease was always on the straight-line method of income recognition. |
Other Income | Other income |
Earnings per share | Earnings per share |
Deferred expense and other assets | Deferred expenses and other assets |
Deferred financing fees | Deferred financing fees |
Stock-based compensation | Stock-based compensation During the third quarter 2018, the Company adopted an equity incentive plan providing for grants of interests (called "Caret units") in a subsidiary of the Operating Partnership intended to constitute profits interests within the meaning of relevant Internal Revenue Service guidance. The Company’s shareholders approved the plan in the second quarter of 2019. Grants under the plan are subject to graduated vesting based on time and hurdles of the Company’s common stock price (refer to Note 11). Expense from Caret units is recorded in "General and administrative" in the Company’s consolidated statements of operations and "Noncontrolling interests" on the Company’s consolidated balance sheet. |
Income taxes | Income taxes least 90% of its net taxable income to qualify as a REIT, the Company intends to distribute all of its net taxable income, if any, and eliminate federal and state taxes on undistributed net taxable income. Certain states may impose minimum franchise taxes. In addition, the Company is allowed certain other non-cash deductions or adjustments, such as depreciation expense, when computing its net taxable income and distribution requirement. These deductions permit the Company to reduce its dividend payout requirement under federal tax laws. The Company’s tax years from 2019 through 2021 remain subject to examination by major tax jurisdictions. The Company formed a taxable REIT subsidiary ("TRS") during the year ended December 31, 2018. The TRS had no activity during the periods presented, and accordingly, no provision for income taxes was required. During the years ended December 31, 2022, 2021 and 2020, the Company paid $0.5 million, $0.1 million and $0.1 million, respectively, in taxes. |
Derivative instruments and hedging activity | Derivative instruments and hedging activity |
Variable interest entities | Variable interest entities |
Fair values | Fair Values The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions): As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Net investment in sales-type leases (1) $ 3,107 $ 3,236 $ 2,413 $ 2,704 Ground Lease receivables (1) 1,375 1,501 796 893 Cash and cash equivalents (2) 20 20 30 30 Restricted cash (2) 28 28 9 9 Liabilities Debt obligations, net (1) Level 1 738 573 738 741 Level 3 2,783 2,358 1,960 2,118 Total debt obligations, net 3,521 2,931 2,698 2,859 (1) The fair value of the Company’s net investment in sales-type leases and Ground Lease receivables are classified as Level 3 within the fair value hierarchy. The fair value of the Company’s debt obligations traded in secondary markets are classified as Level 1 within the fair value hierarchy and the fair value of the Company’s debt obligations not traded in secondary markets 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 and are classified as Level 1 within the fair value hierarchy. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests The Company classifies these redeemable Caret units in accordance with Accounting Standards Codification (“ASC”) 480: Distinguishing Liabilities from Equity. ASC 480-10-S99-3A requires that equity securities redeemable at the option of the holder be classified outside of permanent stockholders’ equity. The Company classifies redeemable Caret units as “Redeemable noncontrolling interests” in its consolidated balance sheets and consolidated statements of changes in equity. The redeemable noncontrolling interest’s carrying amount is equal to the higher of (i) the initial carrying amount, increased or decreased for the redeemable noncontrolling interest’s share of net income or loss and dividends; or (ii) the redemption value. In the case of the Company’s redeemable Caret units, the carrying amount equals both the initial carrying amount and the redemption value. During the year ended December 31, 2022, redeemable noncontrolling interests were allocated $0.6 million of net income (refer to Note 4). |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2016-13 its net investment in sales-type leases and its Ground Lease receivables, which will be recorded as a decrease equity In May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ("ASU 2019-04") to clarify certain accounting topics from previously issued ASUs, including ASU 2016-13. ASU 2019-04 addresses certain aspects of ASU 2016-13, including but not limited to, accrued interest receivable, loan recoveries, interest rate projections for variable-rate financial instruments and expected prepayments. ASU 2019-04 provides alternatives that allow entities to measure credit losses on accrued interest separate from credit losses on the principal portion of a loan, clarifies that entities should include expected recoveries in the measurement of credit losses, allows entities to consider future interest rates when measuring credit losses and can elect to adjust effective interest rates used to discount expected cash flows for expected loan prepayments. ASU 2019-04 is effective upon the adoption of ASU 2016-13. Management is currently evaluating the impact of ASU 2019-04 on the Company’s consolidated financial statements. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table presents the carrying value and fair value for the Company’s financial instruments ($ in millions): As of December 31, 2022 As of December 31, 2021 Carrying Fair Carrying Fair Value Value Value Value Assets Net investment in sales-type leases (1) $ 3,107 $ 3,236 $ 2,413 $ 2,704 Ground Lease receivables (1) 1,375 1,501 796 893 Cash and cash equivalents (2) 20 20 30 30 Restricted cash (2) 28 28 9 9 Liabilities Debt obligations, net (1) Level 1 738 573 738 741 Level 3 2,783 2,358 1,960 2,118 Total debt obligations, net 3,521 2,931 2,698 2,859 (1) The fair value of the Company’s net investment in sales-type leases and Ground Lease receivables are classified as Level 3 within the fair value hierarchy. The fair value of the Company’s debt obligations traded in secondary markets are classified as Level 1 within the fair value hierarchy and the fair value of the Company’s debt obligations not traded in secondary markets 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 and are classified as Level 1 within the fair value hierarchy. |
Net Investment In Sales-type _2
Net Investment In Sales-type Leases and Ground Lease Receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Sales-type Lease, Lease Income | The Company’s net investment in sales-type leases were comprised of the following ($ in thousands): December 31, 2022 December 31, 2021 Total undiscounted cash flows $ 29,586,227 $ 23,707,424 Unguaranteed estimated residual value 2,900,218 2,319,761 Present value discount (29,379,846) (23,614,469) Net investment in sales-type leases $ 3,106,599 $ 2,412,716 The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the year ended December 31, 2022 ($ in thousands): Net Investment in Ground Lease Sales-type Leases Receivables Total Beginning balance $ 2,412,716 $ 796,252 $ 3,208,968 Sales (76,701) — (76,701) Origination/acquisition/fundings (1) 717,480 557,577 1,275,057 Accretion 53,104 20,887 73,991 Ending balance (2) $ 3,106,599 $ 1,374,716 $ 4,481,315 (1) The net investment in sales-type leases is initially measured at the present value of the fixed and determinable lease payments, including any guaranteed or unguaranteed estimated residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. For newly originated or acquired Ground Leases, the Company’s estimate of residual value equals the fair value of the land at lease commencement. (2) As of December 31, 2022, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.1% and 5.4% , respectively. As of December 31, 2022, the weighted average remaining life of the Company’s 33 Ground Lease receivables was 98.9 years. During the years ended December 31, 2022, 2021 and 2020, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands): Net Investment Ground in Sales-type Lease Year Ended December 31, 2022 Leases Receivables Total Cash $ 90,487 $ 37,780 $ 128,267 Non-cash 53,104 20,887 73,991 Total interest income from sales-type leases $ 143,591 $ 58,667 $ 202,258 Year Ended December 31, 2021 Cash $ 52,091 $ 22,925 $ 75,016 Non-cash 30,899 12,909 43,808 Total interest income from sales-type leases $ 82,990 $ 35,834 $ 118,824 Year Ended December 31, 2020 Cash $ 36,098 $ 15,615 $ 51,713 Non-cash 21,186 8,945 30,131 Total interest income from sales-type leases $ 57,284 $ 24,560 $ 81,844 |
Future Minimum Lease Payments Under Sales-type Leases | Future Minimum Lease Payments under Sales-type Leases Fixed Bumps Fixed Bumps with with Inflation Fixed Percentage Adjustments Bumps Rent Total 2023 $ 97,116 $ 2,229 $ 579 $ 99,924 2024 100,960 2,256 586 103,802 2025 102,914 2,283 586 105,783 2026 104,861 2,311 586 107,758 2027 106,754 2,339 586 109,679 Thereafter 28,376,157 583,455 99,669 29,059,281 Total undiscounted cash flows $ 28,888,762 $ 594,873 $ 102,592 $ 29,586,227 |
Real Estate and Real Estate-R_2
Real Estate and Real Estate-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Real Estate Assets | The Company’s real estate assets consist of the following ($ in thousands): As of December 31, 2022 December 31, 2021 Land and land improvements, at cost $ 547,739 $ 547,739 Buildings and improvements, at cost 193,232 193,232 Less: accumulated depreciation (34,371) (28,343) Total real estate, net $ 706,600 $ 712,628 Real estate-related intangible assets, net 217,795 224,182 Total real estate, net and real estate-related intangible assets, net $ 924,395 $ 936,810 |
Schedule of Real Estate-Related Intangible Assets, Net | Real estate-related intangible assets, net consist of the following items ($ in thousands): As of December 31, 2022 Gross Accumulated Carrying Intangible Amortization Value Above-market lease assets, net (1) $ 186,002 $ (15,254) $ 170,748 In-place lease assets, net (2) 65,345 (19,011) 46,334 Other intangible assets, net 750 (37) 713 Total $ 252,097 $ (34,302) $ 217,795 As of December 31, 2021 Gross Accumulated Carrying Intangible Amortization Value Above-market lease assets, net (1) $ 186,002 $ (12,119) $ 173,883 In-place lease assets, net (2) 65,102 (15,523) 49,579 Other intangible assets, net 750 (30) 720 Total $ 251,854 $ (27,672) $ 224,182 (1) Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases. (2) In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases. |
Schedule or Amortization of Real Estate Properties | The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Income Statement For the Years Ended December 31, Intangible asset Location 2022 2021 2020 Above-market lease assets (decrease to income) Operating lease income $ 3,135 $ 3,255 $ 3,310 In-place lease assets (decrease to income) Depreciation and amortization 3,576 3,525 3,396 Other intangible assets (decrease to income) Operating lease income 8 8 8 |
Schedule of Future Amortization Expense | The estimated expense from the amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands): (1) Year Amount 2023 $ 6,682 2024 6,634 2025 6,634 2026 3,725 2027 3,725 (1) As of December 31, 2022, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 79.9 years. |
Real Estate - Related Intangibles, Liabilities | Real estate-related intangible liabilities, net consist of the following items ($ in thousands): As of December 31, 2022 Gross Accumulated Carrying Intangible Amortization Value Below-market lease liabilities (1) $ 68,618 $ (4,027) $ 64,591 As of December 31, 2021 Gross Accumulated Carrying Intangible Amortization Value Below-market lease liabilities (1) $ 68,618 $ (3,189) $ 65,429 (1) Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases. |
Purchase Price Allocations | The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Income Statement For the Years Ended December 31, Intangible liability Location 2022 2021 2020 Below-market lease liabilities (increase to income) Operating lease income $ 838 $ 838 $ 669 |
Future Minimum Ground Net Lease Payments | Future Minimum Operating Lease Payments Fixed Bumps Fixed with Bumps with Inflation- Inflation Fixed Percentage Percentage Year Linked Adjustments Bumps Rent Rent Total 2023 $ 5,783 $ 17,347 $ 2,213 $ 11,018 $ 368 $ 36,729 2024 5,802 17,677 2,247 11,018 398 37,142 2025 5,802 18,004 2,313 11,018 398 37,535 2026 5,802 18,370 2,357 986 398 27,913 2027 5,802 18,755 2,388 986 398 28,329 Thereafter 434,803 4,308,109 433,110 15,826 286 5,192,134 |
Deferred Expenses and Other A_2
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of deferred expenses and other assets, net | Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of December 31, 2022 December 31, 2021 Operating lease right-of-use asset (1) $ 26,312 $ 27,435 Interest rate hedge assets 29,346 — Deferred finance costs, net (2) 4,461 7,875 Other assets 2,664 2,898 Purchase deposits 4,333 2,083 Leasing costs, net 448 456 Deferred expenses and other assets, net $ 67,564 $ 40,747 (1) Operating lease right-of-use asset (and operating lease liability below) relates to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.4 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company’s Ground Lease tenant at the property pays this expense directly under the terms of a master lease. Operating lease right-of-use asset is amortized on a straight-line basis over the term of the lease and is recorded in "Real estate expense" in the Company’s consolidated statements of operations. During each of the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.4 million in "Real estate expense" and $0.4 million in "Other income" from its operating lease right-of-use asset. The related operating lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the Company’s incremental secured borrowing rate for a similar asset estimated to be 5.5% . (2) Accumulated amortization of deferred finance costs was $5.7 million and $2.2 million as of December 31, 2022 and 2021, respectively. |
Schedule of accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of December 31, 2022 December 31, 2021 Interest payable $ 55,459 $ 31,601 Other liabilities (1) 17,639 14,998 Dividends declared and payable 11,067 9,690 Operating lease liability 5,471 5,605 Management fee payable 5,301 4,271 Accrued expenses (2) 5,420 1,427 Accounts payable, accrued expenses and other liabilities $ 100,357 $ 67,592 (1) As of December 31, 2022 and 2021, other liabilities includes $3.1 million and $1.9 million, respectively, due to the Manager for allocated payroll costs and costs it paid on the Company’s behalf. (2) As of December 31, 2022 and 2021, accrued expenses primarily includes accrued legal, audit and property expenses. |
Debt Obligations, net (Tables)
Debt Obligations, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The Company’s outstanding debt obligations consist of the following ($ in thousands): As of Interest Scheduled December 31, 2022 December 31, 2021 Rate (1) Maturity Date (2) Secured credit financing: Mortgages $ 1,498,113 $ 1,498,113 3.99 % April 2027 to November 2069 Total secured credit financing (3) 1,498,113 1,498,113 Unsecured financing: 2.80% senior notes 400,000 400,000 2.80 % June 2031 2.85% senior notes 350,000 350,000 2.85 % January 2032 3.98% senior notes 475,000 — 3.98 % February 2052 5.15% senior notes 151,988 — 5.15 % May 2052 Unsecured Revolver 690,000 490,000 LIBOR plus 1.00 % March 2026 Total unsecured financing 2,066,988 1,240,000 Total debt obligations 3,565,101 2,738,113 Debt premium, discount and deferred financing costs, net (43,742) (40,610) Total debt obligations, net $ 3,521,359 $ 2,697,503 (1) For mortgages, represents the weighted average interest rate of consolidated mortgage debt in effect over the life of the mortgage debt and excludes the effect of debt premium, discount and deferred financing costs. As of December 31, 2022, the weighted average cash interest rate for the Company’s consolidated mortgage debt, based on interest rates in effect at that date, was 3.26% . The difference between the weighted average interest rate and the weighted average cash interest rate is recorded to interest payable within "Accounts payable, accrued expenses, and other liabilities" on the Company’s consolidated balance sheets. As of December 31, 2022, the Company’s combined weighted average interest rate and combined weighted average cash interest rate of the Company’s consolidated mortgage debt, the mortgage debt of the Company’s unconsolidated ventures (applying the Company’s percentage interest in the ventures - refer to Note 6) and the Company’s unsecured senior notes were 3.74% and 3.19% , respectively. (2) Represents the extended maturity date for all debt obligations. (3) As of December 31, 2022, $2.0 billion of real estate, at cost, net investment in sales-type leases and Ground Lease receivables served as collateral for the Company’s debt obligations . |
Schedule of Maturities of Long-term Debt | As of December 31, 2022, future scheduled maturities of outstanding debt obligations, assuming all extensions that can be exercised at the Company’s option, are as follows ($ in thousands): Secured (1) Unsecured Total 2023 $ — $ — $ — 2024 — — — 2025 — — — 2026 — 690,000 690,000 2027 237,000 — 237,000 Thereafter 1,261,113 1,376,988 2,638,101 Total principal maturities 1,498,113 2,066,988 3,565,101 Debt premium, discount and deferred financing costs, net (27,086) (16,656) (43,742) Total debt obligations, net $ 1,471,027 $ 2,050,332 $ 3,521,359 (1) As of December 31, 2022, the Company’s weighted average maturity for its secured mortgages was 28.5 years. |
Risk Management and Derivativ_2
Risk Management and Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Derivative Financial Instruments Designated in Hedging Relationships | The table below presents the Company’s derivatives as well as their classification on the consolidated balance sheets as of December 31, 2022 and 2021 ($ in thousands): (1) December 31, 2022 December 31, 2021 Fair Fair Balance Sheet Derivative Type Value (2) Value (2) Location Assets Interest rate swaps (3) $ 29,346 $ — Deferred expenses and other assets, net Total $ 29,346 $ — (1) During the years ended December 31, 2022, 2021 and 2020, the Company recorded $40.4 million, $13.3 million and ($20.0) million, respectively, of unrealized gains (losses) in accumulated other comprehensive income (loss). (2) 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 within the fair value hierarchy. Over the next 12 months, the Company expects that $3.8 million related to cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" as an increase to interest expense. (3) During the year ended December 31, 2022, the Company received $11.0 million in settlement of certain interest rate hedges. During the year ended December 31, 2021, the Company paid $19.9 million to terminate certain interest rate hedges. |
Derivative Instruments, Gain (Loss) | The tables below present the effect of the Company’s derivative financial instruments in the consolidated statements of operations and the consolidated statements of comprehensive income for the years ended December 31, 2022, 2021 and 2020 ($ in thousands): Amount of Gain Amount of Gain (Loss) Recognized in (Loss) Reclassified Location of Gain (Loss) Accumulated Other from Accumulated When Recognized Comprehensive Other Comprehensive Derivatives Designated in Hedging Relationships in Income Income Income into Earnings For the Year Ended December 31, 2022 Interest rate swaps Interest expense $ 40,373 $ (3,888) For the Year Ended December 31, 2021 Interest rate swaps Interest expense $ 13,290 $ (3,191) For the Year Ended December 31, 2020 Interest rate swaps Interest expense $ (20,018) $ (1,680) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following tables present a reconciliation of net income used in the basic and diluted EPS calculations ($ in thousands, except for per share data): For the Years Ended December 31, 2022 2021 2020 Net income $ 144,684 $ 73,357 $ 59,488 Net income attributable to noncontrolling interests (9,261) (234) (194) Net income attributable to Safehold Inc. common shareholders for basic and diluted earnings per common share $ 135,423 $ 73,123 $ 59,294 For the Years Ended December 31, 2022 2021 2020 Earnings attributable to common shares: Numerator for basic and diluted earnings per share: Net income attributable to Safehold Inc. common shareholders - basic $ 135,423 $ 73,123 $ 59,294 Net income attributable to Safehold Inc. common shareholders - diluted $ 135,423 $ 73,123 $ 59,294 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 61,170 54,167 50,688 Add: Effect of assumed shares under treasury stock method for restricted stock units — 13 9 Weighted average common shares outstanding for diluted earnings per common share (1) 61,170 54,180 50,697 Basic and diluted earnings per common share: Net income attributable to Safehold Inc. common shareholders - basic $ 2.21 $ 1.35 $ 1.17 Net income attributable to Safehold Inc. common shareholders - diluted $ 2.21 $ 1.35 $ 1.17 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | A summary of the terms of the management agreement is below: Manager SFTY Manager, LLC, a wholly-owned subsidiary of iStar Inc. Management Fee Annual fee of 1.00% of total equity (up to $1.5 billion) Management Fee Consideration At the discretion of the Company’s independent directors, payment will be made in cash or in shares of the Company’s common stock (valued at the greater of: (i) the volume weighted average market price during a specified pricing period; or (ii) the initial public offering price of $20.00 per share) Lock-up Restriction from selling common stock received for management fees for two years from the date of such issuance (restriction will terminate in the event of and effective with the termination of the management agreement) Incentive Fee None Term Non-terminable through June 30, 2023, except for cause. Automatic annual renewals thereafter, subject to non-renewal upon certain findings by the Company’s independent directors and payment of termination fee. Termination Fee 3x prior year’s management fee |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2022 employee segment | |
Business Acquisition [Line Items] | |
Number of reportable segments | segment | 1 |
Number of employees | employee | 0 |
Minimum | |
Business Acquisition [Line Items] | |
Ground leases term | 30 years |
Ground lease investment initial targeted value of ground lease of combined value | 30% |
Ground lease, ratio of property net operating income to ground lease payments due | 2 |
Percentage cap for Ground Lease rent increases based on consumer price index | 3% |
Maximum | |
Business Acquisition [Line Items] | |
Ground leases term | 99 years |
Ground lease investment initial targeted value of ground lease of combined value | 45% |
Ground lease, ratio of property net operating income to ground lease payments due | 4.5 |
Percentage cap for Ground Lease rent increases based on consumer price index | 3.50% |
Safehold Operating Partnership LP | Limited Partner | |
Business Acquisition [Line Items] | |
Ownership interest by shareholders' (percent) | 100% |
General partner interests ownership interest | 100% |
Business and Organization - Mer
Business and Organization - Merger Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Feb. 28, 2022 | Mar. 31, 2023 | Mar. 31, 2028 | Mar. 31, 2027 | Mar. 31, 2026 | Mar. 31, 2025 | Mar. 31, 2024 | Dec. 31, 2022 | |
Caret Units | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares to be sold under purchase commitment related to merger | 28,571 | |||||||
Expected proceeds from sale of shares under purchase commitment related to merger | $ 5 | |||||||
iStar Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Voting interest of shareholder agreement | 41.90% | |||||||
Star Holdings | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Annual management fee | $ 5 | $ 10 | $ 15 | $ 25 | ||||
Annual management Fee, Percent, Year Five and Thereafter | 2% | |||||||
MSD Partners | Caret Units | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares to be sold under purchase commitment related to merger | 100,000 | |||||||
Expected proceeds from sale of shares under purchase commitment related to merger | $ 20 | |||||||
Star Holdings | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Stated interest on projected term loan | 8% | |||||||
Term on projected loan | 4 years | |||||||
Projected tern loan to be extended as part of merger | $ 100 | |||||||
Maximum borrowing capacity of proposed bank debt | 140 | |||||||
Value of company shares to be pledged as security on bank debt | $ 400 | |||||||
iStar Inc. | MSD Partners | Forecast | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares to be sold under purchase commitment related to merger | 5,405,406 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation and Combination (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Assets | [1] | $ 5,850,922 | $ 4,515,726 |
Liabilities | [1] | 3,686,307 | $ 2,830,524 |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Assets | 71,300 | ||
Liabilities | $ 29,900 | ||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) class | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Class of Stock [Line Items] | |||
Operating lease income | $ 66,817 | $ 67,667 | $ 72,340 |
Number of classes of common stock | class | 1 | ||
Income taxes paid | $ 500 | 100 | 100 |
Percentage Rent | |||
Class of Stock [Line Items] | |||
Operating lease income | $ 1,300 | $ 300 | $ 3,800 |
Facilities | |||
Class of Stock [Line Items] | |||
Facilities useful life | 40 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Assets | ||||||
Net investment in sales-type leases | [1] | $ 3,106,599 | $ 2,412,716 | |||
Ground Lease receivables | [1] | 1,374,716 | 796,252 | |||
Cash and cash equivalents | 20,066 | [1] | 29,619 | [1] | $ 56,948 | |
Restricted cash | 28,324 | [1] | 8,897 | [1] | $ 39,519 | |
Liabilities | ||||||
Debt obligations, net | [1] | 3,521,359 | 2,697,503 | |||
Carrying Value | ||||||
Assets | ||||||
Net investment in sales-type leases | 3,107,000 | 2,413,000 | ||||
Ground Lease receivables | 1,375,000 | 796,000 | ||||
Cash and cash equivalents | 20,000 | 30,000 | ||||
Restricted cash | 28,000 | 9,000 | ||||
Liabilities | ||||||
Debt obligations, net | 3,521,000 | 2,698,000 | ||||
Carrying Value | Fair Value, Inputs, Level 1 | ||||||
Liabilities | ||||||
Debt obligations, net | 738,000 | 738,000 | ||||
Carrying Value | Fair Value, Inputs, Level 3 | ||||||
Liabilities | ||||||
Debt obligations, net | 2,783,000 | 1,960,000 | ||||
Fair Value | ||||||
Assets | ||||||
Net investment in sales-type leases | 3,236,000 | 2,704,000 | ||||
Ground Lease receivables | 1,501,000 | 893,000 | ||||
Cash and cash equivalents | 20,000 | 30,000 | ||||
Restricted cash | 28,000 | 9,000 | ||||
Liabilities | ||||||
Debt obligations, net | 2,931,000 | 2,859,000 | ||||
Fair Value | Fair Value, Inputs, Level 1 | ||||||
Liabilities | ||||||
Debt obligations, net | 573,000 | 741,000 | ||||
Fair Value | Fair Value, Inputs, Level 3 | ||||||
Liabilities | ||||||
Debt obligations, net | $ 2,358,000 | $ 2,118,000 | ||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Redeemable Noncontrolling Interests (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 USD ($) director shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Subsidiary, Sale of Stock [Line Items] | ||||
Retained earnings | [1] | $ 151,226 | $ 59,368 | |
Cumulative Effect, Period of Adoption, Adjustment | Pro-forma | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Adopt ASU 2016-13 | us-gaap:AccountingStandardsUpdate201613Member | |||
Cumulative Effect, Period of Adoption, Adjustment | Pro-forma | Minimum | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
CECL allowance to be recorded upon adoption | $ 500 | |||
Retained earnings | 0 | |||
Cumulative Effect, Period of Adoption, Adjustment | Pro-forma | Maximum | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
CECL allowance to be recorded upon adoption | 2,000 | |||
Retained earnings | 0 | |||
Caret Units | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of units sold | shares | 108,571 | |||
Number of shares to be sold under purchase commitment related to merger | shares | 28,571 | |||
Proceeds from stock transaction | $ 19,000 | |||
Expected proceeds from sale of shares under purchase commitment | $ 5,000 | |||
Number of independent directors affiliated with an existing shareholder investing in redeemable noncontrolling interest | director | 1 | |||
Period in which the entity is obligated to provide a public market listing | 2 years | |||
Net income attributable to redeemable noncontrolling interests | $ 600 | |||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Net Investment In Sales-type _3
Net Investment In Sales-type Leases and Ground Lease Receivables (Lease Assignment and Modification) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) lease | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Lease reclassification | |||||||||
Number of tenant leases modified and assigned | lease | 1 | ||||||||
Net investment in sales-type leases | [1] | $ 3,106,599 | $ 3,106,599 | $ 2,412,716 | |||||
Real estate, net | [1] | 706,600 | 706,600 | 712,628 | |||||
Deferred operating lease income receivable | [1] | 148,870 | 148,870 | 117,311 | |||||
Real estate-related intangible assets, net | [1] | 217,795 | 217,795 | 224,182 | |||||
Selling profit from sales-type leases | 1,833 | ||||||||
Ground lease acquisition | 557,577 | ||||||||
Net proceeds received from sale of net investment in lease | 135,529 | ||||||||
Gain on sale of net investment in lease | 55,811 | ||||||||
Net income attributable to noncontrolling interests | 9,261 | 234 | $ 194 | ||||||
Distributions to noncontrolling interests | 8,549 | 46 | $ 43 | ||||||
iStar Inc. | |||||||||
Lease reclassification | |||||||||
Ground lease acquisition | $ 36,400 | $ 9,000 | |||||||
Land and Related Ground Lease | |||||||||
Lease reclassification | |||||||||
Net proceeds received from sale of net investment in lease | $ 136,000 | ||||||||
Gain on sale of net investment in lease | 55,800 | ||||||||
Net income attributable to noncontrolling interests | 9,500 | ||||||||
Net income attributable to redeemable noncontrolling interests | $ 700 | ||||||||
Distributions to noncontrolling interests | $ 8,500 | ||||||||
Reclassification of Lease to Sales-Type Lease | |||||||||
Lease reclassification | |||||||||
Lease maturity extension | 3 years 6 months | ||||||||
Net investment in sales-type leases | $ 40,900 | ||||||||
Real estate, net | (11,400) | ||||||||
Deferred operating lease income receivable | (9,800) | ||||||||
Real estate-related intangible assets, net | $ (17,900) | ||||||||
Selling profit from sales-type leases | $ 1,800 | ||||||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Net Investment In Sales-type _4
Net Investment In Sales-type Leases and Ground Lease Receivables (Schedule of Net Investment in Sales-type Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Total undiscounted cash flows | $ 29,586,227 | $ 23,707,424 | |
Unguaranteed estimated residual value | 2,900,218 | 2,319,761 | |
Present value discount | (29,379,846) | (23,614,469) | |
Net investment in sales-type leases | [1] | $ 3,106,599 | $ 2,412,716 |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Net Investment In Sales-type _5
Net Investment In Sales-type Leases and Ground Lease Receivables (Schedule of Net Investment in Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) lease | ||
Net Investment in Sales-type Leases | ||
Net Investment in Sales-type Leases, Beginning Balance | $ 2,412,716 | [1] |
Net Investment in Sales-type Leases, Purchase price allocation adjustment | (76,701) | |
Net Investment in Sales-type Leases, Origination/acquisition/fundings | 717,480 | |
Net Investment in Sales-type Leases, Accretion | 53,104 | |
Net Investment in Sales-type Leases, Ending Balance | 3,106,599 | [1] |
Ground Lease Receivables | ||
Ground Lease Receivables, Beginning balance | 796,252 | [1] |
Ground Lease Receivables, Origination/acquisition/fundings | 557,577 | |
Ground Lease Receivables, Accretion | 20,887 | |
Ground Lease Receivables, Ending balance | 1,374,716 | [1] |
Total | ||
Beginning balance | 3,208,968 | |
Purchase price allocation adjustment | (76,701) | |
Origination/acquisition/fundings | 1,275,057 | |
Accretion | 73,991 | |
Ending balance | $ 4,481,315 | |
Weighted average accrual rate for net investment in sales-type leases | 5.10% | |
Weighted average accrual rate for net investment in ground lease receivables | 5.40% | |
Ground lease receivables | lease | 33 | |
Ground leases term | 98 years 10 months 24 days | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Net Investment In Sales-type _6
Net Investment In Sales-type Leases and Ground Lease Receivables (Fiscal Year Maturity) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
2023 | $ 99,924 |
2024 | 103,802 |
2025 | 105,783 |
2026 | 107,758 |
2027 | 109,679 |
Thereafter | 29,059,281 |
Total undiscounted cash flows | 29,586,227 |
Fixed Bumps with Inflation Adjustments | |
Lessee, Lease, Description [Line Items] | |
2023 | 97,116 |
2024 | 100,960 |
2025 | 102,914 |
2026 | 104,861 |
2027 | 106,754 |
Thereafter | 28,376,157 |
Total undiscounted cash flows | 28,888,762 |
Fixed Bumps | |
Lessee, Lease, Description [Line Items] | |
2023 | 2,229 |
2024 | 2,256 |
2025 | 2,283 |
2026 | 2,311 |
2027 | 2,339 |
Thereafter | 583,455 |
Total undiscounted cash flows | 594,873 |
Fixed Bumps with Percentage Rent | |
Lessee, Lease, Description [Line Items] | |
2023 | 579 |
2024 | 586 |
2025 | 586 |
2026 | 586 |
2027 | 586 |
Thereafter | 99,669 |
Total undiscounted cash flows | $ 102,592 |
Net Investment In Sales-type _7
Net Investment In Sales-type Leases and Ground Lease Receivables (Interest Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | [1] | $ 202,258 | $ 118,824 | $ 81,844 |
Cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 128,267 | 75,016 | 51,713 | |
Non-cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 73,991 | 43,808 | 30,131 | |
Net Investment in Sales-type Leases | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 143,591 | 82,990 | 57,284 | |
Net Investment in Sales-type Leases | Cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 90,487 | 52,091 | 36,098 | |
Net Investment in Sales-type Leases | Non-cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 53,104 | 30,899 | 21,186 | |
Ground Lease Receivables | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 58,667 | 35,834 | 24,560 | |
Ground Lease Receivables | Cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | 37,780 | 22,925 | 15,615 | |
Ground Lease Receivables | Non-cash | ||||
Lessor, Lease, Description [Line Items] | ||||
Interest income from sales-type leases | $ 20,887 | $ 12,909 | $ 8,945 | |
[1] For the years ended December 31, 2022, 2021 and 2020, the Company recorded $2.1 million, $8.4 million and $8.2 million, respectively, of “Interest income from sales-type leases” in its consolidated statements of operations from its Ground Leases with iStar Inc. (“iStar”). |
Real Estate and Real Estate-R_3
Real Estate and Real Estate-Related Intangibles (Real Estate Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Abstract] | |||
Land and land improvements, at cost | $ 547,739 | $ 547,739 | |
Buildings and improvements, at cost | 193,232 | 193,232 | |
Less: accumulated depreciation | [1] | (34,371) | (28,343) |
Real estate, net | [1] | 706,600 | 712,628 |
Real estate-related intangible assets, net | [1] | 217,795 | 224,182 |
Total real estate, net and real estate-related intangible assets, net | [1] | $ 924,395 | $ 936,810 |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Real Estate and Real Estate-R_4
Real Estate and Real Estate-Related Intangibles (Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Intangible | $ 252,097 | $ 251,854 | ||
Accumulated Amortization | (34,302) | (27,672) | ||
Carrying Value | [1] | 217,795 | 224,182 | |
Below-market lease liabilities - Gross Intangible | 68,618 | 68,618 | ||
Below-market lease liabilities - Accumulated Amortization | (4,027) | (3,189) | ||
Below-market lease liabilities - Carrying Value | [1] | 64,591 | 65,429 | |
Above-market lease assets, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Intangible | 186,002 | 186,002 | ||
Accumulated Amortization | (15,254) | (12,119) | ||
Carrying Value | 170,748 | 173,883 | ||
Above-market lease assets, net | Operating Lease Income | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 3,135 | 3,255 | $ 3,310 | |
In-place lease assets, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Intangible | 65,345 | 65,102 | ||
Accumulated Amortization | (19,011) | (15,523) | ||
Carrying Value | 46,334 | 49,579 | ||
In-place lease assets, net | Depreciation and amortization | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 3,576 | 3,525 | 3,396 | |
Below-market lease | Operating Lease Income | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of real estate related intangible liabilities | 838 | 838 | 669 | |
Other intangible assets, net | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Intangible | 750 | 750 | ||
Accumulated Amortization | (37) | (30) | ||
Carrying Value | 713 | 720 | ||
Other intangible assets, net | Operating Lease Income | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 8 | $ 8 | $ 8 | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Real Estate and Real Estate-R_5
Real Estate and Real Estate-Related Intangibles (Intangible Asset Future Amortization Expense) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Real Estate [Abstract] | |
2023 | $ 6,682 |
2024 | 6,634 |
2025 | 6,634 |
2026 | 3,725 |
2027 | $ 3,725 |
Weighted average useful life | 79 years 10 months 24 days |
Real Estate and Real Estate-R_6
Real Estate and Real Estate-Related Intangibles (Future Minimum Ground Net Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | $ 36,729 | ||
2024 | 37,142 | ||
2025 | 37,535 | ||
2026 | 27,913 | ||
2027 | 28,329 | ||
Thereafter | 5,192,134 | ||
Operating lease income | 66,817 | $ 67,667 | $ 72,340 |
Inflation- Linked | |||
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | 5,783 | ||
2024 | 5,802 | ||
2025 | 5,802 | ||
2026 | 5,802 | ||
2027 | 5,802 | ||
Thereafter | 434,803 | ||
Fixed Bumps with Inflation Adjustments | |||
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | 17,347 | ||
2024 | 17,677 | ||
2025 | 18,004 | ||
2026 | 18,370 | ||
2027 | 18,755 | ||
Thereafter | 4,308,109 | ||
Fixed Bumps | |||
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | 2,213 | ||
2024 | 2,247 | ||
2025 | 2,313 | ||
2026 | 2,357 | ||
2027 | 2,388 | ||
Thereafter | 433,110 | ||
Percentage Rent | |||
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | 11,018 | ||
2024 | 11,018 | ||
2025 | 11,018 | ||
2026 | 986 | ||
2027 | 986 | ||
Thereafter | 15,826 | ||
Operating lease income | 1,300 | $ 300 | $ 3,800 |
Fixed Bumps with Percentage Rent | |||
Future Minimum Ground Net Lease Payments to be Collected | |||
2023 | 368 | ||
2024 | 398 | ||
2025 | 398 | ||
2026 | 398 | ||
2027 | 398 | ||
Thereafter | $ 286 |
Equity Investments in Ground _2
Equity Investments in Ground Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Aug. 31, 2019 | ||
Equity investments | ||||||
Equity investments in Ground Leases | [1] | $ 180,388 | $ 173,374 | |||
Earnings from equity method investments | 9,055 | 6,279 | $ 3,304 | |||
Joint Venture | ||||||
Equity investments | ||||||
Equity investments in Ground Leases | 133,100 | 131,300 | ||||
Earnings from equity method investments | 3,400 | 3,400 | $ 3,300 | |||
Office Property, New York City | ||||||
Equity investments | ||||||
Ownership percentage | 29.20% | |||||
Equity investments in Ground Leases | 47,300 | 42,100 | ||||
Earnings from equity method investments | $ 5,700 | $ 2,900 | ||||
425 Park Avenue, New York City | ||||||
Equity investments | ||||||
Ownership percentage | 54.80% | |||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Deferred Expenses and Other A_3
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Deferred expenses and other assets | ||||
Operating lease, right-of-use asset | $ 26,312 | $ 27,435 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Deferred expenses and other assets, net | Deferred expenses and other assets, net | ||
Interest rate hedge assets | $ 29,346 | |||
Deferred finance costs, net | 4,461 | $ 7,875 | ||
Other assets | 2,664 | 2,898 | ||
Purchase deposits | 4,333 | 2,083 | ||
Leasing costs, net | 448 | 456 | ||
Deferred expenses and other assets, net | [1] | $ 67,564 | 40,747 | |
Lease discount rate | 5.50% | |||
Accumulated amortization of deferred finance costs | $ 5,700 | 2,200 | ||
Below-market lease | ||||
Deferred expenses and other assets | ||||
Annual lease fee | 400 | |||
Real estate expense | ||||
Deferred expenses and other assets | ||||
Operating lease expense | 400 | 400 | $ 400 | |
Other Income | ||||
Deferred expenses and other assets | ||||
Operating lease expense | $ 400 | $ 400 | $ 400 | |
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Deferred Expenses and Other A_4
Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest payable | $ 55,459 | $ 31,601 | |
Other liabilities | 17,639 | 14,998 | |
Dividends declared and payable | 11,067 | 9,690 | |
Operating lease liability | 5,471 | 5,605 | |
Management fee payable | 5,301 | 4,271 | |
Accrued expenses | 5,420 | 1,427 | |
Accounts payable, accrued expenses and other liabilities | [1],[2] | $ 100,357 | $ 67,592 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities | |
Payable to the Manager for costs it paid on the Company's behalf | $ 3,100 | $ 1,900 | |
[1] As of December 31, 2022 and 2021, includes $8.5 million and $6.2 million, respectively, due to related parties. Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Debt Obligations, net (Schedule
Debt Obligations, net (Schedule of Debt) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2022 | Jan. 31, 2022 | Nov. 30, 2021 | May 31, 2021 | ||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 3,565,101 | $ 2,738,113 | ||||||
Debt premium, net | (43,742) | (40,610) | ||||||
Total debt obligations, net | [1] | 3,521,359 | 2,697,503 | |||||
Assets pledged as collateral without right | ||||||||
Debt Instrument [Line Items] | ||||||||
Real estate, net investment in sales-type leases and Ground Leases receivables pledged as collateral on debt obligations | 2,000,000 | |||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | 1,498,113 | 1,498,113 | ||||||
Debt premium, net | (27,086) | |||||||
Total debt obligations, net | 1,471,027 | |||||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | 2,066,988 | 1,240,000 | ||||||
Debt premium, net | (16,656) | |||||||
Total debt obligations, net | 2,050,332 | |||||||
Mortgages | Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 1,498,113 | 1,498,113 | ||||||
Weighted average interest rate | 3.99% | |||||||
Weighted average cash interest rate | 3.26% | |||||||
Consolidated Mortgage Debt, Unconsolidated Mortgage Debt and Unsecured Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate | 3.74% | |||||||
Weighted average cash interest rate | 3.19% | |||||||
2.80% Senior Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 400,000 | $ 400,000 | ||||||
Stated interest rate | 2.80% | 2.80% | 2.80% | |||||
2.85% Senior Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 350,000 | $ 350,000 | ||||||
Stated interest rate | 2.85% | 2.85% | 2.85% | |||||
3.980% Senior Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 475,000 | |||||||
Stated interest rate | 3.98% | 3.98% | ||||||
5.15% Senior Notes | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 151,988 | |||||||
Stated interest rate | 5.15% | 5.15% | ||||||
Unsecured Revolver maturing in 2026 | Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Total debt obligations | $ 690,000 | $ 490,000 | ||||||
Unsecured Revolver maturing in 2026 | Unsecured Debt | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis point spread on variable interest rate (percent) | 1% | 1% | 1% | |||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Debt Obligations, net (Narrativ
Debt Obligations, net (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2022 USD ($) | Jan. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) | May 31, 2021 USD ($) | Mar. 31, 2021 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Secured Debt | Mortgages | |||||||
Line of Credit Facility [Line Items] | |||||||
Weighted average interest rate | 3.99% | ||||||
Unsecured Debt | Unsecured Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Unencumbered assets to unsecured debt ration | 1.25 | ||||||
Unsecured Debt | 2.80% Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 400 | ||||||
Stated interest rate | 2.80% | 2.80% | 2.80% | ||||
Percent of par value at which the notes were issued | 99.127% | ||||||
Percentage of principal amount of debt at which debt can be redeemed | 100% | ||||||
Unsecured Debt | 2.85% Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 350 | ||||||
Stated interest rate | 2.85% | 2.85% | 2.85% | ||||
Percent of par value at which the notes were issued | 99.123% | ||||||
Percentage of principal amount of debt at which debt can be redeemed | 100% | ||||||
Unsecured Debt | 3.980% Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 475 | ||||||
Stated interest rate | 3.98% | 3.98% | |||||
Minimum percentage of aggregate principal amount that can be repaid at any time at the Company's discretion | 5% | ||||||
Percentage of principal amount of debt at which debt can be redeemed | 100% | ||||||
Unsecured Debt | 5.15% Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 150 | ||||||
Stated interest rate | 5.15% | 5.15% | |||||
Stairstep interest rate, Years 1 through 10 | 2.50% | ||||||
Stairstep interest rate, Years 11 through 20 | 3.75% | ||||||
Stairstep interest rate, Years 21 through 30 | 5.15% | ||||||
Minimum percentage of aggregate principal amount that can be repaid at any time at the Company's discretion | 5% | ||||||
Percentage of principal amount of debt at which debt can be redeemed | 100% | ||||||
Unsecured Debt | Unsecured Revolver maturing in 2026 | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000 | $ 1,350 | |||||
Number of extension options available | item | 2 | ||||||
Debt extension term | 12 months | ||||||
Line of credit facility fee, percent | 0.125% | ||||||
Remaining borrowing capacity | $ 660 | ||||||
Unsecured Debt | LIBOR | Unsecured Revolver maturing in 2026 | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis point spread on variable interest rate (percent) | 1% | 1% | 1% | ||||
Minimum | Unsecured Debt | Unsecured Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Unencumbered assets to unsecured debt ration | 1.25 | ||||||
Minimum | Unsecured Debt | Unsecured Revolver maturing in 2026 | |||||||
Line of Credit Facility [Line Items] | |||||||
Unencumbered assets to unsecured debt ration | 1.33 | ||||||
Debt instrument covenant multiple of minimum fixed charges on outstanding borrowings | 1.15 |
Debt Obligations, net (Schedu_2
Debt Obligations, net (Schedule of Debt Maturities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 690,000 | ||
2027 | 237,000 | ||
Thereafter | 2,638,101 | ||
Total principal maturities | 3,565,101 | $ 2,738,113 | |
Debt premium, discount and deferred financing costs, net | (43,742) | (40,610) | |
Total debt obligations, net | [1] | $ 3,521,359 | 2,697,503 |
Weighted average maturity of mortgages | 28 years 6 months | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
2023 | $ 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 237,000 | ||
Thereafter | 1,261,113 | ||
Total principal maturities | 1,498,113 | 1,498,113 | |
Debt premium, discount and deferred financing costs, net | (27,086) | ||
Total debt obligations, net | 1,471,027 | ||
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 690,000 | ||
2027 | 0 | ||
Thereafter | 1,376,988 | ||
Total principal maturities | 2,066,988 | $ 1,240,000 | |
Debt premium, discount and deferred financing costs, net | (16,656) | ||
Total debt obligations, net | $ 2,050,332 | ||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Unfunded commitments | |
Leasehold improvement allowance, unfunded, pending milestone achievement | $ 308.2 |
Future funding obligation, amount | $ 398.9 |
Risk Management and Derivativ_3
Risk Management and Derivatives (Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross Asset | $ 29,346 | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | 3,800 | ||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 40,373 | $ 13,290 | $ (20,018) |
Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Settlement of interest rate hedges | 11,000 | ||
Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross Asset | 29,346 | ||
Designated as Hedging Instrument | Interest rate swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Interest rate hedges terminated | $ 19,900 | ||
Designated as Hedging Instrument | Interest rate swap | Deferred expenses and other assets, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gross Asset | $ 29,346 |
Risk Management and Derivativ_4
Risk Management and Derivatives (Derivative Instrument Gain (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 40,373 | $ 13,290 | $ (20,018) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | (3,888) | (3,191) | (1,680) |
Designated as Hedging Instrument | Interest Expense | Interest rate swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | 40,373 | 13,290 | (20,018) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | $ (3,888) | $ (3,191) | $ (1,680) |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 01, 2021 director shares | Dec. 31, 2022 USD ($) class $ / shares shares | Mar. 31, 2022 USD ($) shares | Feb. 28, 2022 USD ($) | Sep. 30, 2021 USD ($) shares | Aug. 31, 2021 director | Feb. 28, 2021 USD ($) | Mar. 31, 2020 USD ($) employee | Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Jun. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) class $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | Feb. 29, 2020 USD ($) | Jun. 30, 2019 USD ($) | |
Class of Stock [Line Items] | |||||||||||||||||
Number of classes of common stock | class | 1 | 1 | |||||||||||||||
Percentage of taxable income including capital gains to be distributed to qualify as REIT | 100% | ||||||||||||||||
Minimum percentage of taxable income excluding capital gains to be distributed to qualify as REIT | 90% | ||||||||||||||||
Cash dividends declared | $ 43,600,000 | $ 37,000,000 | $ 33,200,000 | ||||||||||||||
Dividends declared, per share (usd per share) | $ / shares | $ 0.701 | $ 0.67224 | $ 0.6427 | ||||||||||||||
Number of directors with affiliated trusts which hold CARET Units | director | 2 | 2 | |||||||||||||||
Number of common shares issued in exchange for Caret Units | shares | 2,546 | ||||||||||||||||
ATM | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock offering amount | $ 250,000,000 | ||||||||||||||||
Number of shares issued in transaction | shares | 12,881 | ||||||||||||||||
Sale of stock, share price (in dollars per share) | $ / shares | $ 81.45 | $ 81.45 | |||||||||||||||
Payments of stock issuance costs | $ 15,977 | ||||||||||||||||
Consideration received, net of issuance costs | 1,000,000 | ||||||||||||||||
Aggregate purchase price remaining | $ 248,900,000 | $ 248,900,000 | |||||||||||||||
Public Offering and Private Placement | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Payments of stock issuance costs | $ 5,100,000 | $ 8,000,000 | |||||||||||||||
Public Offering | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Proceeds from stock transaction | $ 118,000,000 | $ 192,300,000 | |||||||||||||||
Number of shares issued in transaction | shares | 2,000,000 | 2,530,000 | |||||||||||||||
iStar Inc. | Private Placement | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Proceeds from private placement offering | $ 191,200,000 | $ 50,000,000 | |||||||||||||||
Number of shares issued in transaction | shares | 3,240,000 | 657,894 | |||||||||||||||
2017 Equity Incentive Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Capital shares reserved for future issuance (in shares) | shares | 698,500 | 698,500 | |||||||||||||||
Caret Units | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Ownership percentage after transaction | 84% | ||||||||||||||||
Caret Units | Equity Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Aggregate value of awards granted | $ 1,400,000 | ||||||||||||||||
Amortization period | 4 years | ||||||||||||||||
Number of CARET Units exchanged for common shares | shares | 3,750 | ||||||||||||||||
Caret Units | Equity Plan | Maximum | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Capital appreciation aggregate distribution, percent | 15% | ||||||||||||||||
Manager | Caret Units | Equity Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Employee of Manager | Equity Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of individuals receiving award grants | employee | 1 | ||||||||||||||||
Employee of Manager | Caret Units | Equity Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Aggregate value of awards granted | $ 100,000 | $ 100,000 | $ 500,000 | ||||||||||||||
Award vesting period | 2 years | ||||||||||||||||
Awards expected to vest within the next year. | shares | 1,100 | 1,100 | |||||||||||||||
Percentage of awards vested | 12% | ||||||||||||||||
Percentage of awards forfeited | 88% | ||||||||||||||||
Director | 2017 Equity Incentive Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Issuance of common stock, net of amortization | $ 1,100,000 | $ 1,100,000 | $ 1,000,000 | ||||||||||||||
Share price (in dollars per share) | $ / shares | $ 43.51 | $ 69.86 | $ 46.94 | ||||||||||||||
Stock issued (in shares) | shares | 26,000 | 16,000 | 22,000 | ||||||||||||||
General and Administrative Expense | 2017 Equity Incentive Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Share-based payment arrangement, expense | $ 1,100,000 | $ 1,300,000 | $ 1,200,000 | ||||||||||||||
General and Administrative Expense | Caret Units | Equity Plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Aggregate compensation cost | $ 400,000 | $ 500,000 | $ 500,000 | ||||||||||||||
iStar Inc. | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Voting interest of shareholder agreement | 41.90% | 41.90% | |||||||||||||||
iStar Inc. | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common shares distributed as non-cash dividend | shares | 6,630,000 | ||||||||||||||||
Common stock purchase plan, shares, purchased in period | shares | 24,108 | 200,000 | |||||||||||||||
Common stock purchase plan, amount purchased in period | $ 1,800,000 | $ 10,500,000 | |||||||||||||||
Common Stock purchase plan, average share price (in dollars per share) | $ / shares | $ 66.83 | ||||||||||||||||
Percentage of ownership | 54.30% | 54.30% | |||||||||||||||
iStar Inc. | SAFE | Maximum | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock voting rights, investor units voting power threshold | 41.90% | 41.90% |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 144,684 | $ 73,357 | $ 59,488 |
Net income attributable to noncontrolling interests | (9,261) | (234) | (194) |
Net income attributable to Safehold Inc. common shareholders for basic earnings per share | 135,423 | 73,123 | 59,294 |
Net income attributable to Safehold Inc. common shareholders - diluted | $ 135,423 | $ 73,123 | $ 59,294 |
Earnings Per Share (Earnings Al
Earnings Per Share (Earnings Allocable to Common Shares) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator for basic and diluted earnings per share: | |||
Net income attributable to Safehold Inc. common shareholders - basic | $ 135,423 | $ 73,123 | $ 59,294 |
Net income attributable to Safehold Inc. common shareholders - diluted | $ 135,423 | $ 73,123 | $ 59,294 |
Denominator for basic and diluted earnings per share: | |||
Weighted average common shares outstanding for basic earnings (in shares) | 61,170 | 54,167 | 50,688 |
Add: Effect of assumed shares under treasury stock method for restricted stock units | 0 | 13 | 9 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 61,170 | 54,180 | 50,697 |
Basic and diluted earnings per common share: | |||
Net income attributable to Safehold Inc. common shareholders - basic | $ 2.21 | $ 1.35 | $ 1.17 |
Net income attributable to Safehold Inc. common shareholders - diluted | $ 2.21 | $ 1.35 | $ 1.17 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ / shares in Units, ft² in Millions | 1 Months Ended | 12 Months Ended | 21 Months Ended | |||||||||||||||||
Dec. 01, 2021 director shares | Jul. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) director | Apr. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) property lease director | Feb. 28, 2022 USD ($) director shares | Nov. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Aug. 31, 2021 director | Jun. 30, 2021 USD ($) ft² agreement | Mar. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) | Oct. 31, 2020 USD ($) | Jun. 30, 2020 | Oct. 31, 2017 USD ($) | Dec. 31, 2022 USD ($) employee lease $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) employee lease $ / shares | ||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of employees | employee | 0 | 0 | ||||||||||||||||||
Management fee paid with common stock, period of restriction from selling stock | 2 years | |||||||||||||||||||
Management fee, transaction share price (in dollars per share) | $ / shares | $ 20 | $ 20 | ||||||||||||||||||
Management fee, percent, threshold one | 1% | |||||||||||||||||||
Management fee, percent, threshold two | 1.25% | |||||||||||||||||||
Management fee, percent, threshold three | 1.375% | |||||||||||||||||||
Management fee, percent, threshold four | 1.50% | |||||||||||||||||||
Management fee expense | $ 20,252,000 | $ 14,865,000 | $ 12,684,000 | |||||||||||||||||
Termination fee, percent of prior years management fee | 300% | 300% | ||||||||||||||||||
Ground lease acquisition | $ 557,577,000 | |||||||||||||||||||
Long-term debt, gross | 3,565,101,000 | 2,738,113,000 | $ 3,565,101,000 | |||||||||||||||||
Future funding obligation, amount | 398,900,000 | 398,900,000 | ||||||||||||||||||
Leasehold improvement allowance, unfunded, pending milestone achievement | 308,200,000 | 308,200,000 | ||||||||||||||||||
Assets | [1] | $ 5,850,922,000 | 4,515,726,000 | $ 5,850,922,000 | ||||||||||||||||
Number of new Ground Leases entered into | lease | 3 | |||||||||||||||||||
Number of ground leases | lease | 33 | 33 | ||||||||||||||||||
Number of directors with affiliated trusts which hold CARET Units | director | 2 | 2 | ||||||||||||||||||
Number of common shares issued in exchange for Caret Units | shares | 2,546 | |||||||||||||||||||
Land | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payments to acquire land | $ 28,500,000 | |||||||||||||||||||
iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of years as active real estate investor | 20 years | |||||||||||||||||||
iStar Inc. | General and Administrative Expense | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expenses from transactions with related party | $ 12,500,000 | 7,500,000 | 5,000,000 | |||||||||||||||||
Manager | General and Administrative Expense | Management Fees | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expenses from transactions with related party | 20,300,000 | 14,900,000 | $ 12,700,000 | |||||||||||||||||
Manager | General and Administrative Expense | Incentive Fee | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expenses from transactions with related party | 0 | |||||||||||||||||||
Office space development property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of square feet | ft² | 1.1 | |||||||||||||||||||
Purchase price of property under purchase option agreement | $ 215,000,000 | |||||||||||||||||||
Mixed-use property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease, additional construction, funding commitment | $ 35,000,000 | |||||||||||||||||||
Minimum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount two | 1,500,000,000 | $ 1,500,000,000 | ||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount three | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount four | $ 5,000,000,000 | 5,000,000,000 | ||||||||||||||||||
Ground leases term | 30 years | |||||||||||||||||||
Maximum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount one | $ 1,500,000,000 | 1,500,000,000 | ||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount two | 3,000,000,000 | 3,000,000,000 | ||||||||||||||||||
Management fee, shareholders' equity, incremental threshold amount three | $ 5,000,000,000 | 5,000,000,000 | ||||||||||||||||||
Ground leases term | 99 years | |||||||||||||||||||
Caret Units | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of units sold | shares | 108,571 | |||||||||||||||||||
Number of shares to be sold under purchase commitment related to merger | shares | 28,571 | |||||||||||||||||||
Expected proceeds from sale of shares under purchase commitment | $ 5,000,000 | |||||||||||||||||||
Number of independent directors affiliated with an existing shareholder investing in redeemable noncontrolling interest | director | 1 | |||||||||||||||||||
Proceeds from stock transaction | $ 19,000,000 | |||||||||||||||||||
Period in which the entity is obligated to provide a public market listing | 2 years | |||||||||||||||||||
Ground Lease Tenant for Recapitalization of an Existing Hotel Property | Hotel | iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease, additional construction, funding commitment | $ 50,000,000 | |||||||||||||||||||
Multi-Family Project Under Construction | iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease, additional construction, funding commitment | $ 75,000,000 | |||||||||||||||||||
Multi-Family Project Under Construction | iStar Inc. | Land | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payments to acquire productive assets | 16,100,000 | |||||||||||||||||||
Future funding obligation, amount | 11,900,000 | |||||||||||||||||||
Leasehold improvement allowance, unfunded, pending milestone achievement | $ 52,000,000 | |||||||||||||||||||
Payment of deferred purchase price obligation | 6,000,000 | |||||||||||||||||||
iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease acquisition | $ 36,400,000 | $ 9,000,000 | ||||||||||||||||||
Payments to acquire land | $ 122,000,000 | |||||||||||||||||||
Number of land properties acquired | property | 3 | |||||||||||||||||||
Payment to terminate a real estate purchase option | $ 300,000 | |||||||||||||||||||
iStar Inc. | Land and Related Ground Lease | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of agreements entered into to acquire land and related ground lease | agreement | 2 | |||||||||||||||||||
Purchase price per agreement for acquisition of land and related Ground Lease, subject to certain conditions being met | $ 33,300,000 | $ 42,000,000 | ||||||||||||||||||
Multiple required by seller that may trigger payment of additional consideration | 1.25 | 1.25 | ||||||||||||||||||
Percentage of required seller return on investment that may trigger payment of additional consideration | 12% | 9% | ||||||||||||||||||
Future funding obligation, amount | $ 51,800,000 | |||||||||||||||||||
iStar Inc. | Office space development property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payment to acquire purchase option agreement | $ 1,200,000 | |||||||||||||||||||
iStar Inc. | Maximum | Land and Related Ground Lease | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Real estate, leasehold improvement allowance | $ 83,000,000 | |||||||||||||||||||
iStar Inc. | Ground Lease Tenant for Recapitalization of an Existing Hotel Property | Hotel | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expenses from transactions with related party | $ 1,900,000 | |||||||||||||||||||
iStar Inc. | Multi-Family Project Under Construction | Land | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Payments to acquire productive assets | $ 24,800,000 | |||||||||||||||||||
Pending ownership interests acquired, subject to conditions being met | 100% | |||||||||||||||||||
Director | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of independent directors affiliated with an existing shareholder participating in or related to a particular project or transaction | director | 1 | |||||||||||||||||||
iStar Affiliate | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of independent directors affiliated with an existing shareholder participating in or related to a particular project or transaction | director | 1 | |||||||||||||||||||
iStar Affiliate | Life Science Office Property Development | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Additional consideration paid | $ 9,000,000 | |||||||||||||||||||
iStar Affiliate | Life Science Office Property Development | Ground Lease tenant | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Loan commitment received to fund a recapitalization project | $ 130,000,000 | |||||||||||||||||||
iStar Affiliate | Mixed-use property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Additional consideration paid | 5,000,000 | |||||||||||||||||||
iStar Affiliate | Mixed-use property | Venture in which iStar and an affiliate of an existing shareholder own noncontrolling interest | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Loan commitment received to fund a recapitalization project | $ 105,000,000 | |||||||||||||||||||
iStar Shareholder Affiliate | Mixed-use property | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of directors affiliated with shareholder having indirect ownership in venture | director | 1 | |||||||||||||||||||
Secured Debt | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Long-term debt, gross | $ 1,498,113,000 | $ 1,498,113,000 | $ 1,498,113,000 | |||||||||||||||||
San Jose, CA | iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease, additional construction, funding commitment | $ 80,500,000 | |||||||||||||||||||
Payments to acquire productive assets | $ 34,000,000 | |||||||||||||||||||
Honolulu, HI | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Term of contract, initial lease term | 99 years | |||||||||||||||||||
Honolulu, HI | Office Condominium Tenant Venture | iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership percentage | 51.90% | |||||||||||||||||||
Ownership percentage acquired during the period | 47.50% | |||||||||||||||||||
Seattle, WA | iStar Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ground lease, additional construction, funding commitment | $ 22,500,000 | |||||||||||||||||||
iStar Inc. | Seattle, WA | Commitment II | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expenses from transactions with related party | $ 2,300,000 | |||||||||||||||||||
[1] Refer to Note 2 for details on the Company’s consolidated variable interest entities ("VIEs"). |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Events - Unsecured Revolver maturing in 2025 $ in Millions | 1 Months Ended |
Jan. 31, 2023 USD ($) | |
Subsequent events | |
Maximum borrowing capacity | $ 500 |
Adjusted SOFR | |
Subsequent events | |
Basis point spread on variable interest rate (percent) | 1% |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Schedule of Real Estate Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 541,393 | |||
Initial Cost to Company, Land | 547,739 | |||
Initial Cost to Company, Building and Improvements | 193,232 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 547,739 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 193,232 | |||
Gross Amount Carried at Close of Period, Total | 740,971 | $ 740,971 | $ 752,420 | $ 687,902 |
Accumulated Depreciation | 34,371 | $ 28,343 | $ 22,314 | $ 16,286 |
Aggregate cost for federal income tax purposes | $ 1,000,000 | |||
Minimum | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 7 years | |||
Maximum | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 12 years | |||
Detroit, MI | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 31,961 | |||
Initial Cost to Company, Land | 29,086 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 29,086 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 29,086 | |||
Accumulated Depreciation | 0 | |||
Dallas, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,736 | |||
Initial Cost to Company, Land | 1,954 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 1,954 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 1,954 | |||
Accumulated Depreciation | 0 | |||
Dallas, TX 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 4,151 | |||
Initial Cost to Company, Land | 2,751 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 2,751 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 2,751 | |||
Accumulated Depreciation | 0 | |||
Atlanta, GA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 7,577 | |||
Initial Cost to Company, Land | 4,097 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 4,097 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 4,097 | |||
Accumulated Depreciation | 0 | |||
Milwaukee, WI | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 3,633 | |||
Initial Cost to Company, Land | 4,638 | |||
Initial Cost to Company, Building and Improvements | 51,323 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 4,638 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 51,323 | |||
Gross Amount Carried at Close of Period, Total | 55,961 | |||
Accumulated Depreciation | $ 7,378 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 40 years | |||
Washington, DC | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 5,190 | |||
Initial Cost to Company, Land | 1,484 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 1,484 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 1,484 | |||
Accumulated Depreciation | 0 | |||
Minneapolis, MN | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 1,452 | |||
Initial Cost to Company, Land | 716 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 716 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 716 | |||
Accumulated Depreciation | 0 | |||
Durango, CO | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 16,604 | |||
Initial Cost to Company, Land | 1,415 | |||
Initial Cost to Company, Building and Improvements | 17,080 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 1,415 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 17,080 | |||
Gross Amount Carried at Close of Period, Total | 18,495 | |||
Accumulated Depreciation | $ 3,120 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 35 years | |||
Rohnert Park, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 19,300 | |||
Initial Cost to Company, Land | 5,869 | |||
Initial Cost to Company, Building and Improvements | 13,752 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 5,869 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 13,752 | |||
Gross Amount Carried at Close of Period, Total | 19,621 | |||
Accumulated Depreciation | $ 3,121 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 32 years | |||
Salt Lake City, UT | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 55,312 | |||
Initial Cost to Company, Land | 8,573 | |||
Initial Cost to Company, Building and Improvements | 40,583 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 8,573 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 40,583 | |||
Gross Amount Carried at Close of Period, Total | 49,156 | |||
Accumulated Depreciation | $ 6,828 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 34 years | |||
San Diego, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 38,084 | |||
Initial Cost to Company, Land | 5,077 | |||
Initial Cost to Company, Building and Improvements | 24,096 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 5,077 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 24,096 | |||
Gross Amount Carried at Close of Period, Total | 29,173 | |||
Accumulated Depreciation | $ 4,283 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 33 years | |||
Seattle, WA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 40,000 | |||
Initial Cost to Company, Land | 7,813 | |||
Initial Cost to Company, Building and Improvements | 45,562 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 7,813 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 45,562 | |||
Gross Amount Carried at Close of Period, Total | 53,375 | |||
Accumulated Depreciation | $ 9,544 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 30 years | |||
Los Angeles, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 57,936 | |||
Initial Cost to Company, Land | 72,836 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 72,836 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 72,836 | |||
Accumulated Depreciation | 0 | |||
Los Angeles, CA 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 62,764 | |||
Initial Cost to Company, Land | 68,140 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 68,140 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 68,140 | |||
Accumulated Depreciation | 0 | |||
Atlanta, GA 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 6,300 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 6,300 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 6,300 | |||
Accumulated Depreciation | 0 | |||
Washington, DC 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 23,100 | |||
Initial Cost to Company, Land | 27,354 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 27,354 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 27,354 | |||
Accumulated Depreciation | 0 | |||
Orlando, FL | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 7,800 | |||
Initial Cost to Company, Land | 6,626 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 6,626 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 6,626 | |||
Accumulated Depreciation | 0 | |||
Raleigh-Durham, NC | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 11,940 | |||
Initial Cost to Company, Land | 4,502 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 4,502 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 4,502 | |||
Accumulated Depreciation | 0 | |||
Atlanta, GA 3 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 9,882 | |||
Initial Cost to Company, Land | 8,478 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 8,478 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 8,478 | |||
Accumulated Depreciation | 0 | |||
San Diego, CA 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 8,168 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 8,168 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 8,168 | |||
Accumulated Depreciation | 0 | |||
Washington, DC 3 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 10,000 | |||
Initial Cost to Company, Land | 15,217 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 15,217 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 15,217 | |||
Accumulated Depreciation | 0 | |||
Phoenix, AZ | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 5,996 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 5,996 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 5,996 | |||
Accumulated Depreciation | 0 | |||
Washington, DC 4 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 21,478 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 21,478 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 21,478 | |||
Accumulated Depreciation | 0 | |||
Miami, FL | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 6,000 | |||
Initial Cost to Company, Land | 9,170 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 9,170 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 9,170 | |||
Accumulated Depreciation | 0 | |||
Miami, FL 2 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 2,471 | |||
Initial Cost to Company, Land | 3,735 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 3,735 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 3,735 | |||
Accumulated Depreciation | 0 | |||
Washington, DC 5 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 95,000 | |||
Initial Cost to Company, Land | 121,100 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 121,100 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 121,100 | |||
Accumulated Depreciation | 0 | |||
Nashville, TN | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 17,500 | |||
Initial Cost to Company, Land | 13,505 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 13,505 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 13,505 | |||
Accumulated Depreciation | 0 | |||
Portland, OR | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 3,641 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 3,641 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 3,641 | |||
Accumulated Depreciation | 0 | |||
San Antonio, TX | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 10,000 | |||
Initial Cost to Company, Land | 2,103 | |||
Initial Cost to Company, Building and Improvements | 836 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 2,103 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 836 | |||
Gross Amount Carried at Close of Period, Total | 2,939 | |||
Accumulated Depreciation | $ 97 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation, Life Used for Depreciation | 40 years | |||
Riverside, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 0 | |||
Initial Cost to Company, Land | 11,399 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 11,399 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 11,399 | |||
Accumulated Depreciation | 0 | |||
San Ramon, CA | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 19,635 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 19,635 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 19,635 | |||
Accumulated Depreciation | 0 | |||
Washington, DC 6 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | 0 | |||
Initial Cost to Company, Land | 44,883 | |||
Initial Cost to Company, Building and Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | 0 | |||
Gross Amount Carried at Close of Period, Land | 44,883 | |||
Gross Amount Carried at Close of Period, Building and Improvements | 0 | |||
Gross Amount Carried at Close of Period, Total | 44,883 | |||
Accumulated Depreciation | $ 0 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation (Real Estate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Beginning balance | $ 740,971 | $ 752,420 | $ 687,902 |
Acquisitions | 64,518 | ||
Transfer to net investment in sales-type lease | (11,449) | ||
Ending balance | $ 740,971 | $ 740,971 | $ 752,420 |
Schedule III - Real Estate an_4
Schedule III - Real Estate and Accumulated Depreciation (Accumulated Depreciation Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Beginning balance | $ 28,343 | $ 22,314 | $ 16,286 |
Additions | 6,028 | 6,029 | 6,028 |
Ending balance | $ 34,371 | $ 28,343 | $ 22,314 |