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Real Estate, Real Estate-Related Intangibles and Real Estate Available and Held for Sale (Tables)

12 Months Ended

Dec. 31, 2023

Real Estate [Abstract]

Schedule of Real Estate Assets

The Company’s real estate assets consist of the following ($ in thousands):


		As of
		December 31, 2023			December 31, 2022
Land and land improvements, at cost		$	551,105		$	547,739
Buildings and improvements, at cost			193,232			193,232
Less: accumulated depreciation			(40,400)			(34,371)
Total real estate, net		$	703,937		$	706,600
Real estate-related intangible assets, net			211,113			217,795
Real estate available and held for sale⁽¹⁾			9,711			—
Total real estate, net and real estate-related intangible assets, net and real estate available and held for sale		$	924,761		$	924,395

(1)

During the year ended December 31, 2023, the Company acquired $9.7 million of real property that is being marketed for sale and is recorded in real estate available and held for sale. During the year ended December 31, 2023, the Company sold $1.5 million of real property that was acquired from iStar that was classified as available for sale upon acquisition. The Company recognized $0.1 million of gains on the sales, which is recorded in “Other income” in the Company’s consolidated statements of operations.

Schedule of Real Estate-Related Intangible Assets, Net

Real estate-related intangible assets, net consist of the following items ($ in thousands):


		As of December 31, 2023
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Above-market lease assets, net⁽¹⁾		$	186,002		$	(18,388)		$	167,614
In-place lease assets, net⁽²⁾			65,345			(22,551)			42,794
Other intangible assets, net			750			(45)			705
Total		$	252,097		$	(40,984)		$	211,113


		As of December 31, 2022
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Above-market lease assets, net⁽¹⁾		$	186,002		$	(15,254)		$	170,748
In-place lease assets, net⁽²⁾			65,345			(19,011)			46,334
Other intangible assets, net			750			(37)			713
Total		$	252,097		$	(34,302)		$	217,795

(1)

Above-market lease assets are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases.

(2)

In-place lease assets are recognized during asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases.

Schedule of Amortization of Real Estate Related Intangible Assets

The amortization of real estate-related intangible assets had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 ($ in thousands):


		Income Statement		For the Years Ended December 31,
Intangible asset		Location		2023			2022			2021
Above-market lease assets (decrease to income)		Operating lease income		$	3,135		$	3,135		$	3,255
In-place lease assets (decrease to income)		Depreciation and amortization			3,540			3,576			3,525
Other intangible assets (decrease to income)		Operating lease income			8			8			8

Schedule of Future Amortization Expense

The estimated expense from the amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):⁽¹⁾


Year		Amount
2024		$	6,634
2025			6,634
2026			3,255
2027			3,255
2028			3,247

(1)	As of December 31, 2023, the weighted average amortization period for the Company’s real estate-related intangible assets was approximately 80.4 years.

Schedule of Real Estate Related Intangible Liabilities

Real estate-related intangible liabilities, net consist of the following items ($ in thousands):


		As of December 31, 2023
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Below-market lease liabilities⁽¹⁾		$	68,618		$	(4,863)		$	63,755


		As of December 31, 2022
		Gross			Accumulated			Carrying
		Intangible			Amortization			Value
Below-market lease liabilities⁽¹⁾		$	68,618		$	(4,027)		$	64,591

(1)

Below-market lease liabilities are recognized during asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases.

Schedule of Impact of Amortization of Real Estate Related Intangible Liabilities on Statements of Operations

The amortization of real estate-related intangible liabilities had the following impact on the Company’s consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 ($ in thousands):


		Income Statement		For the Years Ended December 31,
Intangible liability		Location		2023			2022			2021
Below-market lease liabilities (increase to income)		Operating lease income		$	837		$	838		$	838

Future Minimum Ground Net Lease Payments

Future Minimum Operating Lease Payments—Future minimum lease payments to be collected under non-cancelable operating leases, excluding lease payments that are not fixed and determinable, in effect as of December 31, 2023, are as follows by year ($ in thousands):


					Fixed Bumps									Fixed
					with									Bumps with
		Inflation-			Inflation			Fixed			Percentage			Percentage
Year		Linked			Adjustments			Bumps			Rent			Rent			Total
2024		$	5,811		$	17,677		$	2,247		$	11,018		$	421		$	37,174
2025			5,811			18,004			2,313			11,018			421			37,567
2026			5,811			18,370			2,357			986			421			27,945
2027			5,811			18,755			2,388			986			421			28,361
2028			5,811			19,101			2,421			986			304			28,623
Thereafter			429,245			4,289,009			430,688			14,841			—			5,163,783