Schedule of rollforward of net investment in sales-type leases and Ground Lease receivables

The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the six months ended June 30, 2023 and 2022 ($ in thousands):


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2023
Beginning balance	$	3,106,599	$	1,374,716	$	4,481,315
Impact from adoption of new accounting standard (refer to Note 3)		(351)		(199)		(550)
Origination/acquisition/fundings⁽¹⁾		33,122		97,948		131,070
Accretion		28,579		12,505		41,084
(Provision for) recovery of credit losses		15		(22)		(7)
Ending balance⁽²⁾	$	3,167,964	$	1,484,948	$	4,652,912


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Six Months Ended June 30, 2022
Beginning balance	$	2,412,716	$	796,252	$	3,208,968
Origination/acquisition/fundings⁽¹⁾		474,281		430,517		904,798
Accretion		24,684		8,975		33,659
Ending balance	$	2,911,681	$	1,235,744	$	4,147,425

(1)

The net investment in sales-type leases is initially measured at the present value of the fixed and determinable lease payments, including any guaranteed or unguaranteed estimated residual value of the asset at the end of the lease, discounted at the rate implicit in the lease. For newly originated or acquired Ground Leases, the Company’s estimate of residual value equals the fair value of the land at lease commencement.

(2)

As of June 30, 2023 and December 31, 2022, all of the Company’s net investment in sales-type leases and Ground Lease receivables were current in their payment status. As of June 30, 2023, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.1% and 5.4%, respectively. As of June 30, 2023, the weighted average remaining life of the Company’s 34 Ground Lease receivables was 98.5 years.

Amortized Cost Basis in Ground Lease Receivables

The Company’s amortized cost basis in Ground Lease receivables, presented by year of origination and by stabilized or development status, was as follows as of June 30, 2023 ($ in thousands):


	Year of Origination
	2023		2022		2021		2020		2019		Prior to 2019		Total
Ground Lease receivables
Stabilized properties	$	—	$	523,491	$	238,734	$	179,092	$	445,730	$	—	$	1,387,047
Development properties		1		63,868		34,253		—		—		—		98,122
Total	$	1	$	587,359	$	272,987	$	179,092	$	445,730	$	—	$	1,485,169

Recognized Interest Income from Sales type Leases

During the three and six months ended June 30, 2023 and 2022, the Company recognized interest income from sales-type leases in its consolidated statements of operations as follows ($ in thousands):


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	25,168	$	12,286	$	37,454
Non-cash		14,353		6,351		20,704
Total interest income from sales-type leases	$	39,521	$	18,637	$	58,158


	Net Investment		Ground
	in Sales-type		Lease
Three Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	21,935	$	8,501	$	30,436
Non-cash		12,979		4,832		17,811
Total interest income from sales-type leases	$	34,914	$	13,333	$	48,247


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2023	Leases		Receivables		Total
Cash	$	50,050	$	24,090	$	74,140
Non-cash		28,575		12,505		41,080
Total interest income from sales-type leases	$	78,625	$	36,595	$	115,220


	Net Investment		Ground
	in Sales-type		Lease
Six Months Ended June 30, 2022	Leases		Receivables		Total
Cash	$	41,761	$	15,858	$	57,619
Non-cash		24,684		8,975		33,659
Total interest income from sales-type leases	$	66,445	$	24,833	$	91,278