Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

The following table presents the Company’s consolidated assets and liabilities recorded in “Real estate and other assets available and held for sale and classified as discontinued operations” and “Liabilities associated with real estate held for sale and classified as discontinued operations,” respectively, on the Company’s consolidated balance sheets as of June 30, 2022 and December 31, 2021 ($ in thousands).


	As of
	June 30,		December 31,
	2022		2021
ASSETS
Real estate
Real estate, at cost	$	—	$	1,537,655
Less: accumulated depreciation		—		(271,183)
Total real estate, net		—		1,266,472
Net investment in leases		—		486,389
Loans receivable held for sale		—		48,675
Other investments		1,972		103,229
Finance lease right of use assets		—		150,099
Accrued interest and operating lease income receivable, net		548		2,997
Deferred operating lease income receivable, net		—		63,156
Deferred expenses and other assets, net		8,998		178,694
Total real estate and other assets available and held for sale and classified as discontinued operations	$	11,518	$	2,299,711

LIABILITIES
Accounts payable, accrued expenses and other liabilities	$	5,715	$	92,865
Finance lease liabilities		—		161,258
Debt obligations, net		—		714,296
Total liabilities associated with real estate held for sale and classified as discontinued operations	$	5,715	$	968,419

The transaction described above involving the Company's net lease business qualified for discontinued operations and the following table summarizes net income from discontinued operations for the three and six months ended June 30, 2022 and 2021 ($ in thousands):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Operating lease income	$	—	$	40,752	$	35,596	$	83,265
Interest income		—		889		885		1,749
Interest income from sales-type leases		—		8,532		8,803		17,159
Other income		—		1,161		4,292		2,436
Total revenues		—		51,334		49,576		104,609
Costs and expenses:
Interest expense⁽¹⁾		—		10,776		7,484		21,530
Real estate expense		—		6,972		5,072		15,148
Depreciation and amortization⁽¹⁾		—		13,087		—		26,141
Recovery of loan losses		—		(105)		—		(257)
Recovery of losses on net investment in leases		—		(1,044)		—		(2,646)
Impairment of assets⁽²⁾		—		—		1,492		1,528
Other expense⁽³⁾		—		—		(5,669)		—
Total costs and expenses		—		29,686		8,379		61,444
Income from sales of real estate		—		2,114		683,738		2,114
Income from discontinued operations before earnings from equity method investments and other items		—		23,762		724,935		45,279
Earnings from equity method investments		—		1,599		127,129		2,600
Loss on early extinguishment of debt, net		—		—		(41,408)		—
Net income from discontinued operations before income taxes		—		25,361		810,656		47,879
Income tax expense		—		(46)		(12,968)		(79)
Net income from discontinued operations		—		25,315		797,688		47,800
Net (income) from discontinued operations attributable to noncontrolling interests		—		(2,273)		(179,089)		(4,838)
Net income from discontinued operations attributable to iStar Inc.	$	—	$	23,042	$	618,599	$	42,962

(1)

For the six months ended June 30, 2022, the Company recorded $1.3 million of “Interest expense” in its consolidated statements of operations from its Ground Leases with SAFE. For the three and six months ended June 30, 2021, the Company recorded $2.1 million and $4.1 million, respectively, of “Interest expense” and $0.4 million and $0.7 million, respectively, of “Depreciation and amortization” in its consolidated statements of operations from its Ground Leases with SAFE.

(2)	During both the six months ended June 30, 2022 and 2021, the Company sold assets and recognized aggregate impairments of $1.5 million in connection with the sales.

(3)	Represents the reversal of other expenses recognized in connection with the settlement of interest rate hedges during the six months ended June 30, 2022.

The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the six months ended June 30, 2022 and 2021 ($ in thousands):


	For the Six Months Ended June 30,
	2022		2021
Cash flows provided by operating activities	$	119,950	$	43,934
Cash flows provided by investing activities		2,660,531		4,845

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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