Investments in Unconsolidated Subsidiaries (Tables)

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investments in Unconsolidated Subsidiaries

The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands):


Investment type	September 30, 2022		December 31, 2021
Real estate investments	$	617,099	$	453,813
Investment in Altus Power, Inc.:
Class A common stock (22 million shares)	270,342		229,900
Alignment shares (1)	121,549		114,727
Private placement warrants (2)	—		23,741
Subtotal	391,890		368,368
Other (3)	452,298		373,907
Total investment in unconsolidated subsidiaries	$	1,461,287	$	1,196,088

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(1)The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven fiscal years following the merger. As of March 31, 2022 (the first measurement date), 201,250 of alignment shares automatically converted into 2,011 shares of Class A common stock, which were issued on April 11, 2022.

(2)On September 21, 2022, we exercised all of the private placement warrants on a “cashless basis” and receive 2,552,390 shares of Class A common stock based on a 0.2763 conversion rate.

(3)Consists of our investments in Industrious and other non-public entities.

Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	688,584	$	636,229	$	1,916,277	$	2,098,850
Operating income	280,290		375,655		745,676		1,082,656
Net income (1)	937,221		909,341		3,889,302		2,386,276

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(1)Included in net income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income.