Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Deferred Expenses and Other Assets, Net

Deferred expenses and other assets, net, consist of the following items ($ in thousands):


	As of
	March 31, 2023		December 31, 2022
Operating lease right-of-use asset⁽¹⁾	$	37,032	$	26,312
Interest rate hedge assets		15,306		29,346
Deferred finance costs, net⁽²⁾		7,705		4,461
Other assets		13,979		2,664
Purchase deposits		4,333		4,333
Leasing costs, net		446		448
Corporate furniture, fixtures and equipment, net		1,308		—
Deferred expenses and other assets, net	$	80,109	$	67,564

(1)

Operating lease right-of-use asset relates primarily to a property that is majority-owned by a third party and is ground leased to the Company. The Company is obligated to pay the owner of the property $0.4 million, subject to adjustment for changes in the CPI, per year through 2044; however, the Company’s Ground Lease tenant at the property pays this expense directly under the terms of a master lease. Operating lease right-of-use asset is amortized on a straight-line basis over the term of the lease and is recorded in “Real estate expense” in the Company’s consolidated statements of operations. During both the three months ended March 31, 2023 and 2022, the Company recognized $0.1 million in “Real estate expense” and $0.1 million in “Other income” from its operating lease right-of-use asset. The related operating lease liability (see table below) equals the present value of the minimum rental payments due under the lease discounted at the Company’s incremental secured borrowing rate for a similar asset estimated to be 5.5%. The Company also has operating leases for office space that it assumed from iStar in connection with the Merger (refer to Note 9).

(2)	Accumulated amortization of deferred finance costs was $7.0 million and $5.7 million as of March 31, 2023 and December 31, 2022, respectively.

Schedule of Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):


	As of
	March 31, 2023		December 31, 2022
Interest payable	$	57,715	$	55,459
Other liabilities⁽¹⁾		15,656		17,639
Dividends declared and payable		27		11,067
Operating lease liability⁽²⁾		19,636		5,471
Management fee payable		—		5,301
Accrued expenses⁽³⁾		18,786		5,420
Interest rate hedge liabilities		14,384		—
Accounts payable, accrued expenses and other liabilities	$	126,204	$	100,357

(1)	As of December 31, 2022, other liabilities include $3.1 million due to the Former Manager for allocated payroll costs and costs it paid on the Company’s behalf.

(2)	Refer to Note 9.

(3)	As of March 31, 2023, accrued expenses includes merger costs and transfer taxes resulting from the Merger and also includes accrued legal, audit and property expenses. As of December 31, 2022, accrued expenses primarily includes accrued legal, audit and property expenses.