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Risk Management and Derivatives | 12 Months Ended
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Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Risk Management and Derivatives | Risk management In the normal course of its on-going business operations, the Company encounters economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or reprice at different points in time and potentially at different bases, than its interest-earning assets. Credit risk is the risk of default on the Company’s lending investments or leases that result from a borrower’s or tenant’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of loans and other lending investments due to changes in interest rates or other market factors, including the rate of prepayments of principal and the value of the collateral underlying loans, the valuation of real estate assets by the Company as well as changes in foreign currency exchange rates. Risk concentrations—Concentrations of credit risks arise when a number of borrowers or tenants related to the Company’s investments are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to the Company, to be similarly affected by changes in economic conditions. Substantially all of the Company’s real estate and net investment in leases, including those classified in real estate and other assets available and held for sale and classified as discontinued operations, and assets collateralizing its loans receivable are located in the United States. As of December 31, 2022, the Company’s portfolio contains concentrations in the following property types: Ground Leases, land and development, multifamily, hotel, entertainment/leisure, condominium, retail and other property types. The Company underwrites the credit of prospective borrowers and tenants and often requires them to provide some form of credit support such as corporate guarantees, letters of credit and/or cash security deposits. Although the Company’s loans and real estate assets are geographically diverse and the borrowers and tenants operate in a variety of industries, to the extent the Company has a significant concentration of interest or operating lease revenues from any single borrower or tenant, the inability of that borrower or tenant to make its payment could have a material adverse effect on the Company. Derivatives The Company’s use of derivative financial instruments has historically been limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company’s operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. The Company may have derivatives that are not designated as hedges because they do not meet the strict hedge accounting requirements. Although not designated as hedges, such derivatives are entered into to manage the Company’s exposure to interest rate movements and other identified risks. The Company did not have any derivative financial instruments as of December 31, 2022. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2021 ($ in thousands):(1) ​
​ | ​ | ​ | ​ | ​ | ​
​ |  | Derivative Liabilities
​ | ​ | Balance Sheet | ​ | Fair
As of December 31, 2021 |  | Location |  | Value
Derivatives Designated in Hedging Relationships |  |  | ​ |  |
Interest rate swaps |  | Liabilities associated with real estate held for sale and classified as discontinued operations | ​ | $ | 8,395
Total |  |  | ​ | $ | 8,395
(1) | Over the next 12 months, the Company expects that $2.0 million related to its proportionate share of cash flow hedges held by SAFE will be reclassified from “Accumulated other comprehensive income (loss)” as a decrease to earnings from equity method investments.
The table below presents the effect of the Company’s derivative financial instruments, including the Company’s share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Amount of Gain |  | Amount of Gain
​ | ​ | Location of Gain | ​ | (Loss) Recognized in | ​ | (Loss) Reclassified
​ | ​ | (Loss) | ​ | Accumulated Other | ​ | from Accumulated
Derivatives Designated in | ​ | When Recognized in | ​ | Comprehensive | ​ | Other Comprehensive
Hedging Relationships |  | Income |  | Income |  | Income into Earnings
For the Year Ended December 31, 2022 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps |  | Earnings from equity method investments | ​ | $ | 20,317 | ​ | $ | (7,737)
For the Year Ended December 31, 2021 |  |  | ​ |  |  | ​ |  |
Interest rate swaps |  | Net income from discontinued operations | ​ | $ | 4,748 | ​ | $ | (8,140)
Interest rate swaps |  | Earnings from equity method investments | ​ |  | 8,638 | ​ |  | (1,943)
For the Year Ended December 31, 2020 |  |  | ​ |  |  | ​ |  |
Interest rate swaps |  | Net income from discontinued operations | ​ | $ | (14,940) | ​ | $ | (6,974)
Interest rate swaps |  | Earnings from equity method investments | ​ |  | (13,350) | ​ |  | (1,101)

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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