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Summary of Significant Accounting Policies | 3 Months Ended
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Mar. 31, 2022
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Note 3—Summary of Significant Accounting Policies Net Lease Sale and Discontinued Operations—A discontinued operation represents: (i) a component of the Company or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on the Company’s operations and financial results or (ii) an acquired business that is classified as held for sale on the date of acquisition. ​ Net Lease Sale—In March 2022, the Company, through certain subsidiaries of and entities managed by the Company, closed on a definitive purchase and sale agreement to sell a portfolio of net lease properties owned and managed by such subsidiaries and entities to a third party for an aggregate gross sales price of approximately $3.07 billion and recognized a gain of $663.7 million in “Net income from discontinued operations” in the Company’s consolidated statements of operations. The Company refers to this transaction as the "Net Lease Sale" in this report. The Net Lease Sale is consistent with the Company’s stated corporate strategy which is to grow its Ground Lease and Ground Lease adjacent businesses (refer to Note 8) and simplify its portfolio through sales of other assets. ​ The portfolio sold consisted of office, entertainment and industrial properties located in the United States comprising approximately 18.3 million square feet. It included assets wholly-owned by the Company and assets owned by two joint ventures (see Net Lease Venture and Net Lease Venture II below) managed by the Company and in which it owned 51.9% interests. At the time of closing, the portfolio was encumbered by an aggregate of $702 million of mortgage indebtedness, including indebtedness from equity method investments, which was repaid with proceeds from the sale. After repayment of the mortgage indebtedness and prepayment penalties, a senior term loan secured by certain of the assets (refer to Note 10), payments to terminate derivative contracts, payments to joint venture partners, and payments of promotes, transaction expenses and amounts due under employee incentive plans, the Company retained net cash proceeds of $1.2 billion from the transaction. In addition, as part of the transaction, the buyer sold three of the properties to Safehold Inc. (“SAFE”) for $122.0 million and entered into three Ground Leases with SAFE. Two net lease properties were sold to different third parties in the first quarter of 2022 and the Company’s net lease assets associated with its Ground Lease businesses were not included in the sale. The Company received net cash proceeds of $33.9 million from the sale of the two net lease properties and recognized a gain of $23.9 million in “Net income from discontinued operations” in the Company’s consolidated statements of operations. ​ Net Lease Venture—In February 2014, the Company partnered with a sovereign wealth fund to form a venture to acquire and develop net lease assets (the “Net Lease Venture”) and gave a right of first offer to the venture on all new net lease investments. The Company was responsible for sourcing new opportunities and managing the venture and its assets in exchange for a management fee and incentive fee. Several of the Company’s senior executives whose time was substantially devoted to the Net Lease Venture owned a total of 0.6% equity ownership in the venture via co-investment. These senior executives were also entitled to an amount equal to 50% of any incentive fee received based on the 47.5% external partner’s interest. Net Lease Venture was part of the Net Lease Sale. As of March 31, 2022, $316.6 million of “Noncontrolling interests” was attributable to the Net Lease Venture and represented proceeds from the Net Lease Sale that were not yet distributed to the Company’s partners in the venture as of March 31, 2022. ​ Net Lease Venture II—In July 2018, the Company entered into a new venture (the “Net Lease Venture II”) with an investment strategy similar to the Net Lease Venture. The Company was responsible for managing the venture in exchange for a management fee and incentive fee. During the three months ended March 31, 2022 and 2021, the Company recorded $0.4 million and $0.4 million, respectively, of management fees from Net Lease Venture II in “Net income from discontinued operations” in the Company’s consolidated statements of operations. Net Lease Venture II was part of the Net Lease Sale. As of March 31, 2022, $216.3 million of “Real estate and other assets available and held for sale and classified as discontinued operations” was attributable to the Net Lease Venture II and represented proceeds from the Net Lease Sale that were not yet distributed to the Company as of March 31, 2022. ​ Discontinued Operations—The Company’s net lease assets and liabilities included in the Net Lease Sale and the Company’s other two net lease assets are classified as “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of December 31, 2021. For the three months ended March 31, 2022 and 2021, the operations of such assets are classified in “Net income from discontinued operations” in the Company’s consolidated statements of operations. ​ The following table presents the Company’s consolidated assets and liabilities recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of March 31, 2022 and December 31, 2021 ($ in thousands).
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of | ​
​ | ​ | March 31, | ​ | December 31, | ​
​ | ​ | 2022 |  | 2021 | ​
ASSETS | ​ | ​ |  |  | ​ |  | ​
Real estate | ​ | ​ |  |  | ​ |  | ​
Real estate, at cost | ​ | $ | — | ​ | $ | 1,537,655 | ​
Less: accumulated depreciation | ​ |  | — | ​ |  | (271,183) | ​
Total real estate, net | ​ |  | — | ​ |  | 1,266,472 | ​
Net investment in leases | ​ |  | — | ​ |  | 486,389 | ​
Loans receivable held for sale | ​ | ​ | — | ​ | ​ | 48,675 | ​
Other investments | ​ |  | 216,309 | ​ |  | 103,229 | ​
Finance lease right of use assets | ​ | ​ | — | ​ | ​ | 150,099 | ​
Accrued interest and operating lease income receivable, net | ​ |  | 1,018 | ​ |  | 2,997 | ​
Deferred operating lease income receivable, net | ​ |  | — | ​ |  | 63,156 | ​
Deferred expenses and other assets, net | ​ |  | 8,982 | ​ |  | 178,694 | ​
Total real estate and other assets available and held for sale and classified as discontinued operations | ​ | $ | 226,309 | ​ | $ | 2,299,711 | ​
​ | ​ |  |  | ​ |  |  | ​
LIABILITIES | ​ |  |  | ​ |  |  | ​
Accounts payable, accrued expenses and other liabilities | ​ | $ | 15,963 | ​ | $ | 92,865 | ​
Finance lease liabilities | ​ | ​ | — | ​ | ​ | 161,258 | ​
Debt obligations, net | ​ |  | — | ​ |  | 714,296 | ​
Total liabilities associated with real estate held for sale and classified as discontinued operations | ​ | $ | 15,963 | ​ | $ | 968,419 | ​
​ The transaction described above involving the Company's net lease business qualified for discontinued operations and the following table summarizes net income from discontinued operations for the three months ended March 31, 2022 and 2021 ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended March 31, | ​
​ |  | 2022 |  | 2021 | ​
Revenues: | ​ | ​ |  |  | ​ |  | ​
Operating lease income | ​ | $ | 35,596 | ​ | $ | 42,513 | ​
Interest income | ​ |  | 885 | ​ |  | 861 | ​
Interest income from sales-type leases | ​ |  | 8,803 | ​ |  | 8,627 | ​
Other income | ​ |  | 4,292 | ​ |  | 1,275 | ​
Total revenues | ​ |  | 49,576 | ​ |  | 53,276 | ​
Costs and expenses: | ​ |  | ​ | ​ |  | ​ | ​
Interest expense(1) | ​ |  | 7,484 | ​ |  | 10,754 | ​
Real estate expense | ​ |  | 5,072 | ​ |  | 8,175 | ​
Depreciation and amortization(1) | ​ |  | — | ​ |  | 13,054 | ​
Recovery of loan losses | ​ | ​ | — | ​ | ​ | (152) | ​
Recovery of losses on net investment in leases | ​ |  | — | ​ |  | (1,601) | ​
Impairment of assets | ​ |  | 1,492 | ​ |  | 1,528 | ​
Other expense(2) | ​ |  | (5,669) | ​ |  | — | ​
Total costs and expenses | ​ |  | 8,379 | ​ |  | 31,758 | ​
Income from sales of real estate | ​ |  | 683,738 | ​ |  | — | ​
Income from discontinued operations before earnings from equity method investments and other items | ​ |  | 724,935 | ​ |  | 21,518 | ​
Earnings from equity method investments | ​ |  | 127,129 | ​ |  | 1,001 | ​
Loss on early extinguishment of debt, net | ​ |  | (41,408) | ​ |  | — | ​
Net income from discontinued operations before income taxes | ​ |  | 810,656 | ​ |  | 22,519 | ​
Income tax expense | ​ |  | (12,968) | ​ |  | (33) | ​
Net income from discontinued operations | ​ |  | 797,688 | ​ |  | 22,486 | ​
Net (income) from discontinued operations attributable to noncontrolling interests | ​ |  | (179,089) | ​ |  | (2,564) | ​
Net income from discontinued operations attributable to iStar Inc. | ​ | $ | 618,599 | ​ | $ | 19,922 | ​
(1) | For the three months ended March 31, 2022, the Company recorded $1.3 million of “Interest expense” in its consolidated statements of operations from its Ground Leases with SAFE. For the three months ended March 31, 2021, the Company recorded $2.1 million and $0.4 million, respectively, of “Interest expense” and “Depreciation and amortization” in its consolidated statements of operations from its Ground Leases with SAFE.
(2) | Represents the reversal of other expenses recognized in connection with the settlement of interest rate hedges during the three months ended March 31, 2022.
​ The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the three months ended March 31, 2022 and 2021 ($ in thousands). ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | For the Three Months Ended March 31,
​ | ​ | 2022 |  | 2021
Cash flows provided by operating activities | ​ | $ | 22,571 | ​ | $ | 20,847
Cash flows provided by investing activities | ​ |  | 2,553,349 | ​ |  | 566
​ ​

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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