Other Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments, All Other Investments [Abstract]

Schedule of other investments and proportionate share of earnings from equity method investments

The Company’s other investments and its proportionate share of earnings (losses) from equity method investments were as follows ($ in thousands):


					Earnings (Losses) from				Earnings (Losses) from
	Carrying Value				Equity Method Investments				Equity Method Investments
	as of				For the Three Months Ended				For the Nine Months Ended
	September 30,		December 31,		September 30,				September 30,
	2022		2021		2022		2021		2022		2021
Real estate equity investments
SAFE⁽¹⁾	$	1,459,476	$	1,168,532	$	42,800	$	73,475	$	74,549	$	94,590
Ground Lease Plus Fund		65,793		17,630		725		—		2,014		—
Other real estate equity investments⁽²⁾		33,808		44,349		12,365		11,965		19,749		9,902
Subtotal		1,559,077		1,230,511		55,890		85,440		96,312		104,492
Other strategic investments⁽³⁾		46,191		66,770		1,907		2,355		5,910		6,169
Total	$	1,605,268	$	1,297,281	$	57,797	$	87,795	$	102,222	$	110,661

(1)

As of September 30, 2022, the Company owned 40.3 million shares of SAFE common stock which, based on the closing price of $26.46 on September 30, 2022, had a market value of $1.1 billion. Pursuant to ASC 323-10-40-1, an equity method investor shall account for a share issuance by an investee as if the investor had sold a proportionate share of its investment. Any gain or loss to the investor resulting from an investee’s share issuance shall be recognized in earnings. For the three months ended September 30, 2021, equity in earnings includes a dilution gain of $60.2 million resulting from a SAFE equity offering. For the nine months ended September 30, 2022 and 2021, equity in earnings includes dilution gains of $0.9 million and $60.7 million, respectively, resulting from SAFE equity offerings.

(2)

During the three and nine months ended September 30, 2022, one of the Company’s real estate equity investments closed on the sale of a multifamily property. The Company received a distribution of $15.9 million from the sale and recognized a gain of $11.5 million in “Earnings from equity method investments” in the Company’s consolidated statements of operations.

(3)

During the three and nine months ended September 30, 2021, the Company identified observable price changes in an equity security held by the Company as evidenced by orderly private issuances of similar securities by the same issuer. In accordance with ASC 321 – Investments – Equity Securities, the Company remeasured its equity investment at fair value and recognized mark-to-market gains of $14.0 million and $19.1 million, respectively, in “Other income” in the Company’s consolidated statements of operations. The Company’s equity security was redeemed at its carrying value in the fourth quarter of 2021.

Schedule of summarized financial information


	Revenues		Expenses		Net Income Attributable to SAFE⁽¹⁾
For the Nine Months Ended September 30, 2022
SAFE	$	196,943	$	136,517	$	113,628

For the Nine Months Ended September 30, 2021
SAFE	$	135,001	$	88,585	$	51,844

(1)	Net Income Attributable to SAFE also includes gain on sale of net investment in leases, earnings from equity method investments, loss on early extinguishment of debt and selling profit from sales-type leases.