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 year ended December 31, 2024 ($ in thousands):


	Net Investment in		Ground Lease
	Sales-type Leases		Receivables		Total
Beginning balance	$	3,255,195	$	1,622,298	$	4,877,493
Origination/acquisition/fundings⁽¹⁾		145,024		183,630		328,654
Accretion		61,090		30,765		91,855
Provision for credit losses		(6,356)		(3,295)		(9,651)
Ending balance⁽²⁾	$	3,454,953	$	1,833,398	$	5,288,351

(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 December 31, 2024 and 2023, all of the Company’s net investment in sales-type leases and Ground Lease receivables were current in their payment status. As of December 31, 2024, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.3% and 5.6%, respectively. As of December 31, 2024, the weighted average remaining life of the Company’s 41 Ground Lease receivables was 97.2 years.

Amortized Cost Basis in Ground Lease Receivables

The Company’s amortized cost basis in net investment in sales-type leases and Ground Lease receivables, presented by year of origination and by stabilized or development status, was as follows as of December 31, 2024 ($ in thousands):


	Year of Origination
	2024		2023		2022		2021		2020		Prior to 2020		Total
Net investment in sales-type leases
Stabilized properties	$	35,730	$	50,191	$	653,702	$	1,096,444	$	214,396	$	1,089,992	$	3,140,455
Development properties		111,329		22,062		38,488		121,412		—		28,028		321,319
Total	$	147,059	$	72,253	$	692,190	$	1,217,856	$	214,396	$	1,118,020	$	3,461,774


	Year of Origination
	2024		2023		2022		2021		2020		Prior to 2020		Total
Ground Lease receivables
Stabilized properties	$	—	$	19,524	$	155,921	$	200,819	$	184,071	$	458,982	$	1,019,317
Development properties		87,601		23,487		628,029		78,628		—		—		817,745
Total	$	87,601	$	43,011	$	783,950	$	279,447	$	184,071	$	458,982	$	1,837,062

The Company’s amortized cost basis in net investment in sales-type leases and 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
Net investment in sales-type leases
Stabilized properties	$	49,266	$	642,340	$	1,077,813	$	210,481	$	1,069,583	$	—	$	3,049,483
Development properties		21,634		37,793		119,191		—		27,559		—		206,177
Total	$	70,900	$	680,133	$	1,197,004	$	210,481	$	1,097,142	$	—	$	3,255,660


	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

Recognized Interest Income from Sales type Leases

During the years ended December 31, 2024, 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
Year Ended December 31, 2024	Leases		Receivables		Total
Cash	$	111,909	$	60,486	$	172,395
Non-cash		61,090		30,765		91,855
Total interest income from sales-type leases	$	172,999	$	91,251	$	264,250

Year Ended December 31, 2023
Cash	$	101,306	$	50,417	$	151,723
Non-cash		57,913		25,867		83,780
Total interest income from sales-type leases	$	159,219	$	76,284	$	235,503

Year Ended December 31, 2022
Cash	$	90,487	$	37,780	$	128,267
Non-cash		53,104		20,887		73,991
Total interest income from sales-type leases	$	143,591	$	58,667	$	202,258