XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Net Investment in Sales-type Leases and Ground Lease Receivables (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2024
Leases [Abstract] |
Net Investment in Sales Type Leases | The Company’s net investment in sales-type leases were comprised of the following ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, 2024 |  | December 31, 2023
Total undiscounted cash flows(1) | ​ | $ | 31,878,760 | ​ | $ | 30,586,189
Unguaranteed estimated residual value(1) | ​ |  | 2,982,536 | ​ |  | 2,946,928
Present value discount | ​ |  | (31,518,731) | ​ |  | (30,277,457)
Allowance for credit losses | ​ | ​ | (907) | ​ | ​ | (465)
Net investment in sales-type leases(2) | ​ | $ | 3,341,658 | ​ | $ | 3,255,195
(1) | As of March 31, 2024, total discounted cash flows were approximately $3,312 million and the discounted unguaranteed estimated residual value was $30.8 million. As of December 31, 2023, total discounted cash flows were approximately $3,225 million and the discounted unguaranteed estimated residual value was $30.4 million.
(2) | As of March 31, 2024 and December 31, 2023, $16.5 million and $16.4 million, respectively, was attributable to noncontrolling interests.
Schedule of rollforward of net investment in sales-type leases and Ground Lease receivables | The following table presents a rollforward of the Company’s net investment in sales-type leases and Ground Lease receivables for the three months ended March 31, 2024 and 2023 ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Net Investment in | ​ | Ground Lease | ​ | ​ | ​
​ |  | Sales-type Leases |  | Receivables |  | Total
Three Months Ended March 31, 2024 |  | ​ |  |  | ​ |  |  | ​ |
Beginning balance | ​ | $ | 3,255,195 | ​ | $ | 1,622,298 | ​ | $ | 4,877,493
Origination/acquisition/fundings(1) | ​ |  | 71,978 | ​ |  | 32,158 | ​ |  | 104,136
Accretion | ​ |  | 14,927 | ​ |  | 6,930 | ​ |  | 21,857
Provision for credit losses | ​ | ​ | (442) | ​ | ​ | (323) | ​ | ​ | (765)
Ending balance(2) | ​ | $ | 3,341,658 | ​ | $ | 1,661,063 | ​ | $ | 5,002,721
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Net Investment in | ​ | Ground Lease | ​ | ​ | ​
​ |  | Sales-type Leases |  | Receivables |  | Total
Three Months Ended March 31, 2023 |  | ​ |  |  | ​ |  |  | ​ |
Beginning balance | ​ | $ | 3,106,599 | ​ | $ | 1,374,716 | ​ | $ | 4,481,315
Impact from adoption of new accounting standard | ​ | ​ | (351) | ​ | ​ | (199) | ​ | ​ | (550)
Origination/acquisition/fundings(1) | ​ |  | 19,331 | ​ |  | 50,803 | ​ |  | 70,134
Accretion | ​ | ​ | 14,226 | ​ | ​ | 6,154 | ​ | ​ | 20,380
Recovery of credit losses | ​ |  | 26 | ​ |  | 4 | ​ |  | 30
Ending balance(2) | ​ | $ | 3,139,831 | ​ | $ | 1,431,478 | ​ | $ | 4,571,309
(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 March 31, 2024 and December 31, 2023, all of the Company’s net investment in sales-type leases and Ground Lease receivables were current in their payment status. As of March 31, 2024, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.2% and 5.4%, respectively. As of March 31, 2024, the weighted average remaining life of the Company’s 34 Ground Lease receivables was 97.9 years.
Schedule of changes in allowance for credit losses on net investment in sales-type leases and Ground Lease receivables | Allowance for Credit Losses—Changes in the Company’s allowance for credit losses on net investment in sales-type leases and Ground Lease receivables for the three months ended March 31, 2024 and 2023 were as follows ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Net investment in sales-type leases
​ | ​ | Stabilized | ​ | Development | ​ | Unfunded | ​ | ​
Three Months Ended March 31, 2024 | ​ | Properties | ​ | Properties | ​ | Commitments | ​ | Total
Allowance for credit losses at beginning of period | ​ | $ | 387 | ​ | $ | 78 | ​ | $ | — | ​ | $ | 465
Provision for credit losses(1) | ​ | ​ | 325 | ​ |  | 117 | ​ |  | 11 | ​ |  | 453
Allowance for credit losses at end of period(2) | ​ | $ | 712 | ​ | $ | 195 | ​ | $ | 11 | ​ | $ | 918
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Ground Lease receivables
​ | ​ | Stabilized | ​ | Development | ​ | Unfunded | ​ | ​
Three Months Ended March 31, 2024 | ​ | Properties | ​ | Properties | ​ | Commitments | ​ | Total
Allowance for credit losses at beginning of period | ​ | $ | 123 | ​ | $ | 246 | ​ | $ | 37 | ​ | $ | 406
Provision for credit losses(1) | ​ | ​ | 111 | ​ |  | 212 | ​ |  | 1 | ​ |  | 324
Allowance for credit losses at end of period(2) | ​ | $ | 234 | ​ | $ | 458 | ​ | $ | 38 | ​ | $ | 730
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Net investment in sales-type leases
​ | ​ | Stabilized | ​ | Development | ​ | Unfunded | ​ | ​
Three Months Ended March 31, 2023 | ​ | Properties | ​ | Properties | ​ | Commitments | ​ | Total
Allowance for credit losses at beginning of period | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Impact from adoption of new accounting standard(3) | ​ | ​ | 280 | ​ | ​ | 71 | ​ | ​ | 6 | ​ | ​ | 357
Recovery of credit losses(1) | ​ | ​ | (25) | ​ |  | (1) | ​ |  | (5) | ​ |  | (31)
Allowance for credit losses at end of period(2) | ​ | $ | 255 | ​ | $ | 70 | ​ | $ | 1 | ​ | $ | 326
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Ground Lease receivables
​ | ​ | Stabilized | ​ | Development | ​ | Unfunded | ​ | ​
Three Months Ended March 31, 2023 | ​ | Properties | ​ | Properties | ​ | Commitments | ​ | Total
Allowance for credit losses at beginning of period | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | —
Impact from adoption of new accounting standard(3) | ​ | ​ | 102 | ​ | ​ | 97 | ​ | ​ | 84 | ​ | ​ | 283
Provision for (recovery of) credit losses(1) | ​ | ​ | (9) | ​ |  | 5 | ​ |  | (21) | ​ |  | (25)
Allowance for credit losses at end of period(2) | ​ | $ | 93 | ​ | $ | 102 | ​ | $ | 63 | ​ | $ | 258
(1) | During the three months ended March 31, 2024, the Company recorded a provision for credit losses on net investment in sales-type leases and Ground Lease receivables of $0.5 million and $0.3 million, respectively. The provision for credit losses was due primarily to current market conditions, including an increase in the Ground Lease cost to value ratio on the Company’s portfolio of Ground Leases since December 31, 2023. During the three months ended March 31, 2023, the Company recorded a recovery of credit losses on net investment in sales-type leases and Ground Lease receivables of $31 thousand and $25 thousand, respectively. The recovery of credit losses on net investment in sales-type leases and Ground Lease receivables was due primarily to an improving macroeconomic forecast since December 31, 2023.
(2) | Allowance for credit losses on unfunded commitments is recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets.
(3) | On January 1, 2023, the Company recorded an allowance for credit losses on net investment in sales-type leases of $0.4 million and an allowance for credit losses on Ground Lease receivables of $0.2 million upon the adoption of ASU 2016-13, of which an aggregate of $0.1 million related to expected credit losses for unfunded commitments and was recorded in "Accounts payable, accrued expenses and other liabilities."
Amortized Cost Basis in Ground Lease Receivables | The Company’s amortized cost basis in Ground Lease receivables, presented by year of origination and by stabilized or development status, was as follows as of March 31, 2024 ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year of Origination |  |  | ​
​ |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior to 2020 |  | Total
Ground Lease receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Stabilized properties | ​ | $ | — | ​ | $ | 19,209 | ​ | $ | 153,704 | ​ | $ | 198,044 | ​ | $ | 181,567 | ​ | $ | 452,303 | ​ | $ | 1,004,827
Development properties | ​ |  | — | ​ |  | 142 | ​ |  | 579,251 | ​ |  | 77,535 | ​ |  | — | ​ |  | — | ​ |  | 656,928
Total | ​ | $ | — | ​ | $ | 19,351 | ​ | $ | 732,955 | ​ | $ | 275,579 | ​ | $ | 181,567 | ​ | $ | 452,303 | ​ | $ | 1,661,755
​ 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 December 31, 2023 ($ in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Year of Origination |  |  | ​
​ |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior to 2019 |  | Total
Ground Lease receivables | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Stabilized properties | ​ | $ | 19,106 | ​ | $ | 152,966 | ​ | $ | 171,664 | ​ | $ | 180,739 | ​ | $ | 450,123 | ​ | $ | — | ​ | $ | 974,598
Development properties | ​ |  | 139 | ​ |  | 545,509 | ​ |  | 102,421 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 648,069
Total | ​ | $ | 19,245 | ​ | $ | 698,475 | ​ | $ | 274,085 | ​ | $ | 180,739 | ​ | $ | 450,123 | ​ | $ | — | ​ | $ | 1,622,667
Future Minimum Lease Payments Under Sales-type Leases | Future Minimum Lease Payments under Sales-type Leases—Future minimum lease payments to be collected under sales-type leases accounted for under ASC 842 - Leases, excluding lease payments that are not fixed and determinable, in effect as of March 31, 2024, are as follows by year ($ in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ |  | ​ | ​ |  | Fixed Bumps |  | ​ | ​
​ | ​ | Fixed Bumps | ​ | ​ | ​ | ​ | with | ​ | ​ | ​
​ | ​ | with Inflation | ​ | Fixed | ​ | Percentage | ​ | ​ | ​
​ |  | Adjustments |  | Bumps |  | Rent |  | Total
2024 (remaining nine months) | ​ | $ | 86,556 | ​ | $ | 2,955 | ​ | $ | 440 | ​ | $ | 89,951
2025 | ​ |  | 108,927 | ​ |  | 4,001 | ​ |  | 586 | ​ |  | 113,514
2026 | ​ |  | 111,308 | ​ |  | 4,067 | ​ |  | 586 | ​ |  | 115,961
2027 | ​ |  | 113,331 | ​ |  | 4,135 | ​ |  | 586 | ​ |  | 118,052
2028 | ​ | ​ | 115,355 | ​ | ​ | 4,294 | ​ | ​ | 637 | ​ | ​ | 120,286
Thereafter | ​ |  | 30,059,026 | ​ |  | 1,162,938 | ​ |  | 99,032 | ​ |  | 31,320,996
Total undiscounted cash flows | ​ | $ | 30,594,503 | ​ | $ | 1,182,390 | ​ | $ | 101,867 | ​ | $ | 31,878,760
Recognized Interest Income from Sales type Leases | During the three months ended March 31, 2024 and 2023, 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 March 31, 2024 |  | Leases |  | Receivables |  | Total
Cash | ​ | $ | 27,270 | ​ | $ | 14,091 | ​ | $ | 41,361
Non-cash | ​ |  | 14,927 | ​ |  | 6,930 | ​ |  | 21,857
Total interest income from sales-type leases | ​ | $ | 42,197 | ​ | $ | 21,021 | ​ | $ | 63,218
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Net Investment |  | Ground |  | ​ | ​
​ | ​ | in Sales-type | ​ | Lease | ​ | ​ | ​
Three Months Ended March 31, 2023 | ​ | Leases | ​ | Receivables | ​ | Total
Cash | ​ | $ | 24,882 | ​ | $ | 11,804 | ​ | $ | 36,686
Non-cash | ​ |  | 14,222 | ​ |  | 6,154 | ​ |  | 20,376
Total interest income from sales-type leases | ​ | $ | 39,104 | ​ | $ | 17,958 | ​ | $ | 57,062

X
- Definition Tabular disclosure of credit quality indicator for ground lease receivable. + References No definition available. + Details
Name: | safe_GroundLeaseReceivableCreditQualityIndicatorTableTextBlock
Namespace Prefix: | safe_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allowance for credit loss on net investment in sales-type financing lease and ground lease receivable. + References No definition available. + Details
Name: | safe_SalesTypeLeaseNetInvestmentInLeaseAndGroundLeaseReceivableAllowanceForCreditLossTableTextBlock
Namespace Prefix: | safe_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of sales type lease net investment in lease. + References No definition available. + Details
Name: | safe_SalesTypeLeaseNetInvestmentInLeaseTableTextBlock
Namespace Prefix: | safe_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in net investment in sales type leases and Ground Lease receivables. + References No definition available. + Details
Name: | safe_ScheduleOfChangeInNetInvestmentInSalesTypeLeasesAndGroundLeaseReceivablesTableTextBlock
Namespace Prefix: | safe_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturity of undiscounted cash flows to be received on annual basis for sales-type and direct financing leases receivable. Includes, but is not limited to, reconciliation to lease receivable recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479773/842-30-50-10 + Details
Name: | us-gaap_SalesTypeAndDirectFinancingLeasesLeaseReceivableMaturityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of components of income from sales-type lease. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479773/842-30-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482964/270-10-50-6A + Details
Name: | us-gaap_SalesTypeLeaseLeaseIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration