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Equity Investments

9 Months Ended

Sep. 30, 2025

Investments, All Other Investments [Abstract]

Equity Investments

Note 8—Equity Investments

The Company’s equity investments and its proportionate share of earnings (losses) from equity investments were as follows ($ in thousands):


								Earnings from						Earnings from
		Carrying Value						Equity Method Investments						Equity Method Investments⁽¹⁾
		as of						For The Three Months Ended						For the Nine Months Ended
		September 30,			December 31,			September 30,						September 30,
		2025			2024			2025			2024			2025			2024
Equity investment
425 Park Avenue		$	139,197		$	137,348		$	907		$	654		$	2,679		$	2,389
32 Old Slip			66,864			57,574			993			1,401			3,747			4,243
Ground Lease Plus Fund⁽¹⁾			30,826			30,103			487			497			1,301			1,839
Leasehold Loan Fund⁽²⁾			36,003			25,009			2,267			2,187			6,831			9,649
Total		$	272,890		$	250,034		$	4,654		$	4,739		$	14,558		$	18,120

(1)

As of September 30, 2025, the Company has a basis difference of $19.7 million in the Ground Lease Plus Fund that will be amortized over a weighted average remaining term of 104.8 years using the effective interest method. During the three months ended September 30, 2025 and 2024, $0.1 million and $0.1 million, respectively, of the basis difference was amortized as a decrease to earnings from equity method investments. During the nine months ended September 30, 2025 and 2024, ($0.2) million and $0.1 million, respectively, of the basis difference was amortized as a (decrease) increase to earnings from equity method investments.

(2)

As of September 30, 2025, the Company has a basis difference of $4.1 million in the Leasehold Loan Fund that will be amortized over a weighted average remaining term of 0.7 years using the effective interest method. During the three months ended September 30, 2025 and 2024, $1.0 million and $0.8 million, respectively, of the basis difference was amortized as an increase to earnings from equity method investments. During the nine months ended September 30, 2025 and 2024, $2.4 million and $4.0 million, respectively, of the basis difference was amortized as an increase to earnings from equity method investments.

425 Park Avenue—In August 2019, the Company formed a venture with a sovereign wealth fund that is an existing shareholder of the Company to acquire the existing Ground Lease at 425 Park Avenue in New York City. The venture acquired the Ground Lease in November 2019. The Company has a 54.8% noncontrolling equity interest in the venture and is the manager of the venture.

32 Old Slip—In June 2021, the Company acquired a 29.2% noncontrolling equity interest in a Ground Lease at an office property in New York City.

Ground Lease Plus Fund—The Company manages a fund that targets the origination and acquisition of Ground Leases for commercial real estate projects that are in a pre-development phase (the “Ground Lease Plus Fund”). The Company owns a 53.2% noncontrolling equity interest in the Ground Lease Plus Fund. The Company does not have a controlling interest in the Ground Lease Plus Fund due to the substantive participating rights of its partner and accounts for this investment as an equity method investment. The Company receives a fee from its partner in exchange for managing the entity and is also entitled to a promote payment on investments in the Ground Lease Plus Fund.

In November 2021, iStar acquired land for $33.3 million and simultaneously structured and entered into a Ground Lease on which a multi-family project would be constructed. In December 2021, iStar sold the Ground Lease to the Ground Lease Plus Fund and recognized no gain or loss on the sale. At the time of iStar’s acquisition in November 2021, the Company and iStar entered into an agreement pursuant to which the Company would acquire the land and related Ground Lease from the Ground Lease Plus Fund when certain construction related conditions were met by a specified time period. In January 2024, the Company acquired the Ground Lease from the Ground Lease Plus Fund for $38.3 million, excluding amounts funded by the Company pursuant to a leasehold improvement allowance (refer to Note 15).

Leasehold Loan Fund—The Company manages a fund that targets customers that may require a mortgage leasehold loan as well as a Ground Lease (the “Leasehold Loan Fund”). The Company owns a 53.2% noncontrolling equity interest in the Leasehold Loan Fund. The Company does not have a controlling interest in the Leasehold Loan Fund due to the substantive participating rights of its partner. The Company accounts for this investment as an equity method investment and receives a fixed annual administrative fee and an asset management fee from its partner in exchange for managing the entity. The Company is also entitled to a promote payment on certain investments in the Leasehold Loan Fund.

In February 2022, the Leasehold Loan Fund committed to provide a $130.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a life science property. In August 2025, the loan commitment was reduced to $30.0 million. As of September 30, 2025, the Leasehold Loan Fund funded $15.5 million of the commitment.

In June 2022, the Leasehold Loan Fund committed to provide a $105.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a mixed-use property. In July 2025, the loan commitment was reduced to $55.5 million. As of September 30, 2025, the Leasehold Loan Fund funded $44.0 million of the commitment.

In July 2024, the Leasehold Loan Fund committed to provide a $31.5 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s construction of a student housing property. As of September 30, 2025, the Leasehold Loan Fund funded $15.8 million of the commitment.