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Segment Reporting
 9 Months Ended
Sep. 30, 2025
Segment Reporting  
Segment Reporting

Note 16—Segment Reporting

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The Company conducts its business through one reportable and one operating segment by acquiring, managing and capitalizing Ground Leases, which the Company believes provides an opportunity for safe, growing income. The Company’s chief executive officer is the chief operating decision maker (“CODM”) and uses net income (loss), as reported on the consolidated statements of comprehensive income (loss), to measure segment operating performance. All of the Company’s expenses are included in segment operating performance and are reviewed regularly. However, the CODM reviews interest expense and general and administrative expense on a more disaggregated basis. The CODM reviews interest expense in more detail because the Company uses its cost of capital to price its investments. The CODM also reviews general and administrative expense, which includes public company costs consisting of compensation, occupancy, and other corporate costs, in more detail to ensure its resources are in line with its business and operating needs. The measure of segment assets is reported on the Company’s consolidated balance sheets as total assets. The CODM also reviews assets and asset level metrics such as rent coverage, GAAP and cash asset yields, Ground Lease cost to value ratios, unrealized capital appreciation and certain other metrics on a regular basis.

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The following table presents the Company’s expenses that are reviewed in more detail by the CODM for the three and nine months ended September 30, 2025 and 2024 ($ in thousands):

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

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For the Nine Months Ended

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​

September 30, 

​

September 30, 

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2025

    

2024

    

2025

    

2024

Interest expense

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​

​

​

​

​

​

​

​

​

​

Cash

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$

45,749

​

$

43,064

​

$

133,618

​

$

126,788

Non-cash

​

​

6,748

​

​

6,897

​

​

20,570

​

​

20,911

Subtotal interest expense

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​

52,497

​

​

49,961

​

​

154,188

​

​

147,699

General and administrative(1)

​

​

​

​

​

​

​

​

​

​

​

​

Public company and other costs

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​

9,956

​

​

9,649

​

​

30,474

​

​

30,895

Stock-based compensation

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​

3,111

​

​

3,467

​

​

9,679

​

​

10,125

Subtotal general and administrative

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13,067

​

 

13,116

​

 

40,153

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41,020

(1)The CODM also considers management fees earned from Star Holdings (refer to Note 15) in their review of general and administrative expense because many of the Company’s employees spend time and resources performing basic functions for the management of Star Holdings. During the three months ended September 30, 2025 and 2024, the Company earned $2.7 million and $3.7 million, respectively, in management fees from Star Holdings. During the nine months ended September 30, 2025 and 2024, the Company earned $9.0 million and $13.6 million, respectively, in management fees from Star Holdings. The management fees are included in “Other income” in the Company’s consolidated statements of operations.