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

9 Months Ended

Sep. 30, 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
		September 30, 2023			December 31, 2022
Operating lease right-of-use asset⁽¹⁾		$	34,981		$	26,312
Interest rate hedge assets			92,616			29,346
Deferred finance costs, net⁽²⁾			5,031			4,461
Other assets⁽³⁾			15,619			2,664
Purchase deposits			3,373			4,333
Leasing costs, net			441			448
Corporate furniture, fixtures and equipment, net			1,078			—
Deferred expenses and other assets, net		$	153,139		$	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 $0.5 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 September 30, 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. During the nine months ended September 30, 2023 and 2022, the Company recognized $0.4 million and $0.3 million, respectively, in “Real estate expense” and $0.4 million and $0.3 million, respectively, 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 $9.7 million and $5.7 million as of September 30, 2023 and December 31, 2022, respectively.

(3)

As of September 30, 2023, includes $6.9 million of management fees due from Star Holdings. Through September 30, 2023, the Company has earned $13.2 million of management fees from Star Holdings and as of September 30, 2023, $36.8 million of the transaction price is attributable to performance obligations that remain unsatisfied.

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
		September 30, 2023			December 31, 2022
Interest payable		$	63,232		$	55,459
Other liabilities⁽¹⁾			14,671			17,639
Dividends declared and payable			12,907			11,067
Operating lease liability⁽²⁾			17,047			5,471
Management fee payable			—			5,301
Accrued expenses⁽³⁾			15,129			5,420
Accounts payable, accrued expenses and other liabilities		$	122,986		$	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 September 30, 2023, accrued expenses includes accrued compensation, legal, audit and property expenses. As of December 31, 2022, accrued expenses includes accrued legal, audit and property expenses.