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Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

3 Months Ended

Mar. 31, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

Note 8—Deferred Expenses and Other Assets, Net and Accounts Payable, Accrued Expenses and Other Liabilities

Deferred expenses and other assets, net, consist of the following items ($ in thousands):


	As of
	March 31, 2025		December 31, 2024
Operating lease right-of-use asset⁽¹⁾	$	28,594	$	29,707
Interest rate hedge assets		30,650		45,439
Deferred finance costs, net⁽²⁾		15,215		16,471
Other assets⁽³⁾		14,047		12,278
Purchase deposits		—		42
Leasing costs, net		429		431
Corporate furniture, fixtures and equipment, net		598		647
Deferred expenses and other assets, net	$	89,533	$	105,015

(1)

Operating lease right-of-use asset (and operating lease liability below) 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 March 31, 2025 and 2024, 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. 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.

(2)	Accumulated amortization of deferred finance costs was $4.7 million and $3.5 million as of March 31, 2025 and December 31, 2024, respectively.

(3)

As of March 31, 2025 and December 31, 2024, includes $3.5 million and $3.7 million, respectively, of management fees due from Star Holdings. Through March 31, 2025, the Company has earned $39.8 million of management fees from Star Holdings and as of March 31, 2025, $10.2 million of the transaction price is attributable to performance obligations that remain unsatisfied.

Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands):


	As of
	March 31, 2025		December 31, 2024
Interest payable	$	97,782	$	87,854
Other liabilities		17,361		17,105
Dividends declared and payable		13,449		13,307
Operating lease liabilities⁽¹⁾		8,980		10,374
Accrued expenses⁽²⁾		6,409		16,351
Accounts payable, accrued expenses and other liabilities	$	143,981	$	144,991

(1)	Refer to Note 10.

(2)	As of March 31, 2025 and December 31, 2024, accrued expenses includes accrued compensation, legal, audit and property expenses.