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Net Investment in Sales-type Leases and Ground Lease Receivables (Tables)

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

Net Investment in Sales Type Leases

The Company’s net investment in sales-type leases were comprised of the following ($ in thousands):

​	​	​	​	​	​	​
​		September 30, 2025			December 31, 2024
Total undiscounted cash flows(1)	​	$	33,945,980	​	$	32,934,705
Unguaranteed estimated residual value(1)	​		3,090,615	​		3,039,649
Present value discount	​		(33,500,354)	​		(32,512,580)
Allowance for credit losses	​	​	(8,966)	​	​	(6,821)
Net investment in sales-type leases	​	$	3,527,275	​	$	3,454,953

(1) As of September 30, 2025, total discounted cash flows were approximately $3,503 million and the discounted unguaranteed estimated residual value was $33.4 million. As of December 31, 2024, total discounted cash flows were approximately $3,430 million and the discounted unguaranteed estimated residual value was $32.0 million.

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 nine months ended September 30, 2025 and 2024 ($ in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	Net Investment in		​	Ground Lease		​	​	​
​		Sales-type Leases			Receivables			Total
Nine Months Ended September 30, 2025		​			​			​
Beginning balance	​	$	3,454,953	​	$	1,833,398	​	$	5,288,351
Origination/acquisition/fundings(1)	​		25,770	​		103,303	​		129,073
Accretion	​		48,697	​		26,646	​		75,343
(Provision for) recovery of credit losses	​	​	(2,145)	​	​	(2,328)	​	​	(4,473)
Ending balance(2)	​	$	3,527,275	​	$	1,961,019	​	$	5,488,294

​

​	​	​	​	​	​	​	​	​	​
​	​	Net Investment in		​	Ground Lease		​	​	​
​		Sales-type Leases			Receivables			Total
Nine Months Ended September 30, 2024		​			​			​
Beginning balance	​	$	3,255,195	​	$	1,622,298	​	$	4,877,493
Origination/acquisition/fundings(1)	​		145,144	​		137,490	​		282,634
Accretion	​	​	45,285	​	​	22,374	​	​	67,659
(Provision for) recovery of credit losses	​		(5,582)	​		(3,015)	​		(8,597)
Ending balance(2)	​	$	3,440,042	​	$	1,779,147	​	$	5,219,189

(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 September 30, 2025 and December 31, 2024, all of the Company’s net investment in sales-type leases and Ground Lease receivables were current in their payment status. As of September 30, 2025, the Company’s weighted average accrual rate for its net investment in sales-type leases and Ground Lease receivables was 5.3% and 5.7%, respectively. As of September 30, 2025, the weighted average remaining life of the Company’s 47 Ground Lease receivables was 96.6 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 for the three and nine months ended September 30, 2025 and 2024 were as follows ($ in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net investment in sales-type leases

​

​

Stabilized

​

Development

​

Unfunded

​

​

Three Months Ended September 30, 2025

​

Properties

​

Properties

​

Commitments

​

Total

Allowance for credit losses at beginning of period

​

$

7,833

​

$

497

​

$

30

​

$

8,360

Provision for (recovery of) credit losses(1)

​

​

607

​

29

​

—

​

636

Allowance for credit losses at end of period(2)

​

$

8,440

​

$

526

​

$

30

​

$

8,996

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2024

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

1,431

​

$

91

​

$

1

​

$

1,523

Provision for (recovery of) credit losses(1)

​

​

4,226

​

299

​

—

​

4,525

Allowance for credit losses at end of period(2)

​

$

5,657

​

$

390

​

$

1

​

$

6,048

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2025

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

6,385

​

$

436

​

$

—

​

$

6,821

Provision for (recovery of) credit losses(1)

​

​

2,055

​

90

​

30

​

2,175

Allowance for credit losses at end of period(2)

​

$

8,440

​

$

526

​

$

30

​

$

8,996

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2024

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

387

​

$

78

​

$

—

​

$

465

Provision for (recovery of) credit losses(1)

​

​

5,270

​

312

​

1

​

5,583

Allowance for credit losses at end of period(2)

​

$

5,657

​

$

390

​

$

1

​

$

6,048

(1) During the three months ended September 30, 2025 and 2024, the Company recorded a provision for credit losses on net investment in sales-type leases of $0.6 million and $4.5 million, respectively. The provision for credit losses for the three months ended September 30, 2025 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 June 30, 2025, and growth in the carrying value of the portfolio during the period. The provision for credit losses for the three months ended September 30, 2024 was due primarily to enhancements to the Company’s general provision for credit loss methodology, current market conditions and growth in the portfolio during the period. During the nine months ended September 30, 2025 and 2024, the Company recorded a provision for credit losses on net investment in sales-type leases of $2.2 million and $5.6 million, respectively. The provision for credit losses for the nine months ended September 30, 2025 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, 2024, and growth in the carrying value of the portfolio during the period. The provision for credit losses for the nine months ended September 30, 2024 was due primarily to enhancements to the Company’s general provision for credit loss methodology, current market conditions and growth in the portfolio during the period. 

(2) Allowance for credit losses on unfunded commitments is recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets.

​

Changes in the Company’s allowance for credit losses on Ground Lease receivables for the three and nine months ended September 30, 2025 and 2024 were as follows ($ in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Ground Lease receivables

​

​

Stabilized

​

Development

​

Unfunded

​

​

Three Months Ended September 30, 2025

​

Properties

​

Properties

​

Commitments

​

Total

Allowance for credit losses at beginning of period

​

$

4,423

​

$

1,167

​

$

44

​

$

5,634

Provision for (recovery of) credit losses(1)

​

​

297

​

105

​

(12)

​

390

Allowance for credit losses at end of period(2)

​

$

4,720

​

$

1,272

​

$

32

​

$

6,024

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2024

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

471

​

$

302

​

$

13

​

$

786

Provision for (recovery of) credit losses(1)

​

​

2,016

​

595

​

42

​

2,653

Allowance for credit losses at end of period(2)

​

$

2,487

​

$

897

​

$

55

​

$

3,439

​

​

Nine Months Ended September 30, 2025

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

2,652

​

$

1,012

​

$

37

​

$

3,701

Provision for (recovery of) credit losses(1)

​

​

2,068

​

260

​

(5)

​

2,323

Allowance for credit losses at end of period(2)

​

$

4,720

​

$

1,272

​

$

32

​

$

6,024

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2024

​

​

​

​

​

​

​

​

Allowance for credit losses at beginning of period

​

$

123

​

$

246

​

$

37

​

$

406

Provision for (recovery of) credit losses(1)

​

​

2,364

​

651

​

18

​

3,033

Allowance for credit losses at end of period(2)

​

$

2,487

​

$

897

​

$

55

​

$

3,439

(1) During the three months ended September 30, 2025 and 2024, the Company recorded a provision for credit losses on Ground Lease receivables of $0.4 million and $2.7 million, respectively. The provision for credit losses for the three months ended September 30, 2025 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 June 30, 2025, and growth in the carrying value of the portfolio during the period. The provision for credit losses for the three months ended September 30, 2024 was due primarily to enhancements to the Company’s general provision for credit loss methodology, current market conditions and growth in the portfolio during the period. During the nine months ended September 30, 2025 and 2024, the Company recorded a provision for credit losses on Ground Lease receivables of $2.3 million and $3.0 million, respectively. The provision for credit losses for the nine months ended September 30, 2025 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, 2024. The provision for credit losses for the nine months ended September 30, 2024 was due primarily to enhancements to the Company’s general provision for credit loss methodology, current market conditions and growth in the portfolio during the period. 

(2) Allowance for credit losses on unfunded commitments is recorded in “Accounts payable and accrued expenses” on the Company’s consolidated balance sheets.

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 September 30, 2025 ($ in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year of Origination

​

​

2025

2024

2023

2022

2021

Prior to 2021

Total

Net investment in sales-type leases

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Stabilized properties

​

$

22,831

​

$

36,300

​

$

50,987

​

$

662,244

​

$

1,114,314

​

$

1,322,996

​

$

3,209,672

Development properties

​

113

​

113,558

​

22,387

​

39,015

​

123,101

​

28,395

​

326,569

Total

​

$

22,944

​

$

149,858

​

$

73,374

​

$

701,259

​

$

1,237,415

​

$

1,351,391

​

$

3,536,241

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year of Origination

​

​

2025

2024

2023

2022

2021

Prior to 2021

Total

Ground Lease receivables

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Stabilized properties

​

$

37,891

​

$

—

​

$

19,845

​

$

158,176

​

$

203,591

​

$

652,314

​

$

1,071,817

Development properties

​

33,588

​

120,514

​

24,770

​

636,592

​

79,730

​

—

​

895,194

Total

​

$

71,479

​

$

120,514

​

$

44,615

​

$

794,768

​

$

283,321

​

$

652,314

​

$

1,967,011

​

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

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 September 30, 2025, are as follows by year ($ in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fixed Bumps

​

​

​

​

Fixed Bumps

​

​

​

​

with

​

​

​

​

​

with Inflation

​

Fixed

​

Percentage

​

​

​

​

Adjustments

Bumps

Rent

Total

2025 (remaining three months)

​

$

26,796

​

$

2,022

​

$

349

​

$

29,167

2026

​

109,757

​

8,580

​

1,545

​

119,882

2027

​

112,379

​

9,320

​

1,695

​

123,394

2028

​

114,371

​

9,595

​

1,746

​

125,712

2029

​

​

116,922

​

​

9,785

​

​

1,753

​

​

128,460

Thereafter

​

29,608,690

​

3,524,762

​

285,913

​

33,419,365

Total undiscounted cash flows

​

$

30,088,915

​

$

3,564,064

​

$

293,001

​

$

33,945,980

Recognized Interest Income from Sales type Leases

During the three and nine months ended September 30, 2025 and 2024, 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 September 30, 2025		Leases			Receivables			Total
Cash	​	$	29,000	​	$	17,592	​	$	46,592
Non-cash	​		16,655	​		9,182	​		25,837
Total interest income from sales-type leases	​	$	45,655	​	$	26,774	​	$	72,429

​

​	​	​	​	​	​	​	​	​	​
​		Net Investment			Ground			​	​
​	​	in Sales-type		​	Lease		​	​	​
Three Months Ended September 30, 2024	​	Leases		​	Receivables		​	Total
Cash	​	$	28,203	​	$	15,678	​	$	43,881
Non-cash	​		15,332	​		7,907	​		23,239
Total interest income from sales-type leases	​	$	43,535	​	$	23,585	​	$	67,120

​

​	​	​	​	​	​	​	​	​	​
​	​	Net Investment		​	Ground		​	​	​
​	​	in Sales-type		​	Lease		​	​	​
Nine Months Ended September 30, 2025		Leases			Receivables			Total
Cash	​	$	86,627	​	$	50,765	​	$	137,392
Non-cash	​		48,697	​		26,646	​		75,343
Total interest income from sales-type leases	​	$	135,324	​	$	77,411	​	$	212,735

​

​	​	​	​	​	​	​	​	​	​
​		Net Investment			Ground			​	​
​	​	in Sales-type		​	Lease		​	​	​
Nine Months Ended September 30, 2024	​	Leases		​	Receivables		​	Total
Cash	​	$	83,318	​	$	44,596	​	$	127,914
Non-cash	​		45,284	​		22,375	​		67,659
Total interest income from sales-type leases	​	$	128,602	​	$	66,971	​	$	195,573

​

X

- Definition

Tabular disclosure of credit quality indicator for ground lease receivable.

+ References

No definition available.

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- 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

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- Definition

Tabular disclosure of sales type lease net investment in lease.

+ References

No definition available.

+ Details

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- Definition

Tabular disclosure of changes in net investment in sales type leases and Ground Lease receivables.

+ References

No definition available.

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- References

No definition available.

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- 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

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- 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

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