Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ISTAR INC. | |
Entity Central Index Key | 1,095,651 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 67,968,039 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate | ||
Real estate, at cost | $ 2,255,537 | $ 1,629,436 |
Less: accumulated depreciation | (340,538) | (347,405) |
Real estate, net | 1,914,999 | 1,282,031 |
Real estate available and held for sale | 37,597 | 68,588 |
Total real estate | 1,952,596 | 1,350,619 |
Land and development, net | 641,627 | 860,311 |
Loans receivable and other lending investments, net | 1,052,872 | 1,300,655 |
Other investments | 293,017 | 321,241 |
Cash and cash equivalents | 1,039,591 | 657,688 |
Accrued interest and operating lease income receivable, net | 10,994 | 11,957 |
Deferred operating lease income receivable, net | 88,080 | 86,877 |
Deferred expenses and other assets, net | 279,390 | 141,730 |
Total assets | 5,358,167 | 4,731,078 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 249,494 | 238,004 |
Loan participations payable, net | 14,709 | 102,425 |
Debt obligations, net | 3,869,576 | 3,476,400 |
Total liabilities | 4,133,779 | 3,816,829 |
Commitments and contingencies (refer to Note 11) | ||
Redeemable noncontrolling interests | 11,814 | 0 |
iStar Inc. shareholders' equity: | ||
Common Stock, $0.001 par value, 200,000 shares authorized, 67,968 and 68,236 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 68 | 68 |
Additional paid-in capital | 3,350,750 | 3,352,665 |
Retained deficit | (2,325,291) | (2,470,564) |
Accumulated other comprehensive income (loss) (refer to Note 13) | (2,233) | (2,482) |
Total iStar Inc. shareholders' equity | 1,023,310 | 879,703 |
Noncontrolling interests | 189,264 | 34,546 |
Total equity | 1,212,574 | 914,249 |
Total liabilities and equity | 5,358,167 | 4,731,078 |
Preferred Stock Series D, G and I | ||
iStar Inc. shareholders' equity: | ||
Preferred Stock | 12 | 12 |
Preferred Stock Series J | ||
iStar Inc. shareholders' equity: | ||
Preferred Stock | $ 4 | $ 4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 67,968,000 | 68,236,000 |
Common Stock, shares outstanding (in shares) | 67,968,000 | 68,236,000 |
Preferred Stock Series D, G and I | ||
Liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred Stock Series J | ||
Liquidation preference (in dollars per share) | $ 50 | $ 50 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenues: | |||||
Operating lease income | $ 44,609 | $ 47,002 | $ 90,407 | $ 94,349 | |
Interest income | 25,212 | 28,645 | 51,909 | 57,703 | |
Other income | 20,823 | 139,510 | 36,142 | 151,374 | |
Land development revenue | 80,927 | 132,710 | 357,356 | 152,760 | |
Total revenues | 171,571 | 347,867 | 535,814 | 456,186 | |
Costs and expenses: | |||||
Interest expense | 43,172 | 48,807 | 88,353 | 99,952 | |
Real estate expense | 37,043 | 34,684 | 73,224 | 70,274 | |
Land development cost of sales | 83,361 | 122,466 | 306,768 | 138,376 | |
Depreciation and amortization | 10,767 | 13,171 | 21,878 | 25,451 | |
General and administrative | [1] | 23,228 | 27,218 | 52,041 | 52,392 |
Provision for (recovery of) loan losses | 18,892 | (600) | 18,037 | (5,528) | |
Impairment of assets | 6,088 | 10,284 | 10,188 | 14,696 | |
Other expense | 3,716 | 16,276 | 4,882 | 18,145 | |
Total costs and expenses | 226,267 | 272,306 | 575,371 | 413,758 | |
Income (loss) before earnings from equity method investments and other items | (54,696) | 75,561 | (39,557) | 42,428 | |
Loss on early extinguishment of debt, net | (2,164) | (3,315) | (2,536) | (3,525) | |
Earnings (losses) from equity method investments | (7,278) | 5,515 | (3,946) | 11,217 | |
Gain on consolidation of equity method investment | 67,877 | 0 | 67,877 | 0 | |
Income from continuing operations before income taxes | 3,739 | 77,761 | 21,838 | 50,120 | |
Income tax expense | (128) | (1,644) | (249) | (2,251) | |
Income from continuing operations | 3,611 | 76,117 | 21,589 | 47,869 | |
Income from discontinued operations | 0 | 173 | 0 | 4,939 | |
Gain from discontinued operations | 0 | 123,418 | 0 | 123,418 | |
Income tax expense from discontinued operations | 0 | (4,545) | 0 | (4,545) | |
Income from sales of real estate | [2] | 56,895 | 844 | 73,943 | 8,954 |
Net income | 60,506 | 196,007 | 95,532 | 180,635 | |
Net income attributable to noncontrolling interests | (9,509) | (5,710) | (9,604) | (4,610) | |
Net income attributable to iStar Inc. | 50,997 | 190,297 | 85,928 | 176,025 | |
Preferred dividends | (8,124) | (12,830) | (16,248) | (25,660) | |
Net income allocable to common shareholders | $ 42,873 | $ 177,467 | $ 69,680 | $ 150,365 | |
Income attributable to iStar Inc. from continuing operations: | |||||
Basic (in dollars per share) | $ 0.63 | $ 0.81 | $ 1.03 | $ 0.37 | |
Diluted (in dollars per share) | 0.54 | 0.69 | 0.89 | 0.35 | |
Net income attributable to iStar Inc.: | |||||
Basic (in dollars per share) | 0.63 | 2.46 | 1.03 | 2.09 | |
Diluted (in dollars per share) | $ 0.54 | $ 2.04 | $ 0.89 | $ 1.76 | |
Weighted average number of common shares: | |||||
Basic (in shares) | 67,932 | 72,142 | 67,922 | 72,104 | |
Weighted average common shares outstanding for diluted earnings per common share | 83,694 | 88,195 | 83,682 | 88,156 | |
Equity-based compensation | $ 3,503 | $ 3,915 | $ 12,593 | $ 9,796 | |
All Performance Incentive Plans | |||||
Weighted average number of common shares: | |||||
Equity-based compensation | $ 2,200 | $ 2,900 | $ 10,200 | $ 7,900 | |
[1] | For the three months ended June 30, 2018 and 2017, includes $2.2 million and $2.9 million, respectively, of equity-based compensation associated with iPIP Plans (refer to Note 14). For the six months ended June 30, 2018 and 2017, includes $10.2 million and $7.9 million, respectively, of equity-based compensation associated with iPIP Plans (refer to Note 14). These plans are liability-based plans which are marked-to-market quarterly and such marks are based upon the performance of the assets underlying the plans as of the quarterly measurement dates; however, actual amounts cannot be determined until the end date of the plans and the ultimate repayment or monetization of the related assets. | ||||
[2] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 60,506 | $ 196,007 | $ 95,532 | $ 180,635 | |
Other comprehensive income (loss): | |||||
Impact from adoption of new accounting standards | 0 | 0 | 276 | 0 | |
Reclassification of (gains)/losses on cumulative translation adjustment into earnings upon realization | [1] | 721 | 0 | 721 | 0 |
Reclassification of losses on cash flow hedges into earnings upon realization | [2] | (1,795) | (313) | (1,786) | (191) |
Unrealized gains (losses) on available-for-sale securities | 15 | 583 | (956) | 566 | |
Unrealized gains (losses) on cash flow hedges | 7 | (146) | 2,358 | 394 | |
Unrealized gains (losses) on cumulative translation adjustment | (256) | 172 | (364) | (229) | |
Other comprehensive income | (1,308) | 296 | 249 | 540 | |
Comprehensive income | 59,198 | 196,303 | 95,781 | 181,175 | |
Comprehensive (income) attributable to noncontrolling interests | (9,509) | (5,710) | (9,604) | (4,610) | |
Comprehensive income attributable to iStar Inc. | $ 49,689 | $ 190,593 | $ 86,177 | $ 176,565 | |
[1] | Amounts were reclassified to "Earnings from equity method investments" in the Company's consolidated statements of operations. | ||||
[2] | Amounts reclassified to "Interest expense" in the Company's consolidated statements of operations are $30 and $60 for the three and six months ended June 30, 2017, respectively. Amount reclassified to "Gain on consolidation of equity method investment" in the Company's consolidated statements of operations is $1,876 for the three and six months ended June 30, 2018. Amounts reclassified to "Earnings from equity method investments" in the Company's consolidated statements of operations are $81 and $90 for the three and six months ended June 30, 2018, respectively, and $70 and $164 for the three and six months ended June 30, 2017, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification of losses on cash flow hedges into earnings upon realization | [1] | $ (1,795) | $ (313) | $ (1,786) | $ (191) |
Interest Expense | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | (30) | (60) | |||
Earnings from equity method investments | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | 81 | $ (70) | 90 | $ (164) | |
Gain on consolidation of equity method investments | |||||
Reclassification of losses on cash flow hedges into earnings upon realization | $ (1,876) | $ (1,876) | |||
[1] | Amounts reclassified to "Interest expense" in the Company's consolidated statements of operations are $30 and $60 for the three and six months ended June 30, 2017, respectively. Amount reclassified to "Gain on consolidation of equity method investment" in the Company's consolidated statements of operations is $1,876 for the three and six months ended June 30, 2018. Amounts reclassified to "Earnings from equity method investments" in the Company's consolidated statements of operations are $81 and $90 for the three and six months ended June 30, 2018, respectively, and $70 and $164 for the three and six months ended June 30, 2017, respectively. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Preferred Stock | [1] | Preferred Stock Series J | [1] | Common Stock at Par | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | |
Beginning Balance at Dec. 31, 2016 | $ 1,059,684 | $ 22 | $ 4 | $ 72 | $ 3,602,172 | $ (2,581,488) | $ (4,218) | $ 43,120 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared—preferred | (25,660) | (25,660) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 1,699 | 1,699 | |||||||||
Net income for the period | [2] | 181,971 | 176,025 | 5,946 | |||||||
Change in accumulated other comprehensive income (loss) | 540 | 540 | |||||||||
Change in additional paid in capital attributable to redeemable noncontrolling interest | 110 | 110 | |||||||||
Distributions to noncontrolling interests | (12,988) | (12,988) | |||||||||
Ending Balance at Jun. 30, 2017 | 1,205,356 | 22 | 4 | 72 | 3,603,981 | (2,431,123) | (3,678) | 36,078 | |||
Beginning Balance at Dec. 31, 2017 | 914,249 | 12 | 4 | 68 | 3,352,665 | (2,470,564) | (2,482) | 34,546 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared—preferred | (16,248) | (16,248) | |||||||||
Issuance of stock/restricted stock unit amortization, net | 6,389 | 1 | 6,388 | ||||||||
Net income for the period | [2] | 95,532 | 85,928 | 9,604 | |||||||
Change in accumulated other comprehensive income (loss) | (27) | (27) | |||||||||
Change in accumulated other comprehensive income (loss) | 249 | ||||||||||
Repurchase of stock | (8,304) | (1) | (8,303) | ||||||||
Contributions from noncontrolling interests | 9 | 9 | |||||||||
Distributions to noncontrolling interests | (43,174) | (43,174) | |||||||||
Change in noncontrolling interest attributable to consolidation of equity method investment (refer to Note 7) | 188,279 | ||||||||||
Impact from adoption of new accounting standards (refer to Note 3) | 75,869 | 75,593 | 276 | ||||||||
Ending Balance at Jun. 30, 2018 | $ 1,212,574 | $ 12 | $ 4 | $ 68 | $ 3,350,750 | $ (2,325,291) | $ (2,233) | $ 189,264 | |||
[1] | Refer to Note 13 for details on the Company's Preferred Stock. | ||||||||||
[2] | For the six months ended June 30, 2017, net income (loss) shown above excludes $(1,336) of net loss attributable to redeemable noncontrolling interests. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity (Parenthetical) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Net income (loss) attributable to redeemable noncontrolling interest | $ (1,336) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 95,532 | $ 180,635 |
Adjustments to reconcile net income to cash flows from operating activities: | ||
Provision for (recovery of) loan losses | 18,037 | (5,528) |
Impairment of assets | 10,188 | 14,696 |
Depreciation and amortization | 21,878 | 26,352 |
Non-cash expense for stock-based compensation | 12,593 | 9,796 |
Amortization of discounts/premiums and deferred financing costs on debt obligations, net | 7,900 | 6,615 |
Amortization of discounts/premiums on loans and deferred interest on loans, net | (18,487) | (31,445) |
Deferred interest on loans received | 39,254 | 23,177 |
Gain from consolidation of equity method investment | (67,877) | 0 |
Gain from discontinued operations | 0 | (123,418) |
(Earnings) losses from equity method investments | 3,946 | (11,217) |
Distributions from operations of other investments | 6,745 | 35,502 |
Deferred operating lease income | (3,752) | (3,070) |
Income from sales of real estate | (73,943) | (9,462) |
Land development revenue in excess of cost of sales | (50,588) | (14,384) |
Loss on early extinguishment of debt, net | 2,536 | 3,525 |
Other operating activities, net | 3,281 | 10,606 |
Changes in assets and liabilities: | ||
Changes in accrued interest and operating lease income receivable | 1,530 | 2,798 |
Changes in deferred expenses and other assets, net | (2,426) | (7,567) |
Changes in accounts payable, accrued expenses and other liabilities | (27,483) | 3,941 |
Cash flows provided by (used in) operating activities | (21,136) | 111,552 |
Cash flows from investing activities: | ||
Originations and fundings of loans receivable, net | (294,476) | (130,701) |
Capital expenditures on real estate assets | (17,805) | (16,346) |
Capital expenditures on land and development assets | (61,577) | (53,894) |
Acquisitions of real estate assets | (3,390) | 0 |
Repayments of and principal collections on loans receivable and other lending investments, net | 552,696 | 367,028 |
Net proceeds from sales of real estate | 238,834 | 154,291 |
Net proceeds from sales of land and development assets | 170,662 | 146,713 |
Cash, cash equivalents and restricted cash acquired upon consolidation of equity method investment | 13,608 | 0 |
Distributions from other investments | 22,296 | 11,275 |
Contributions to and acquisition of interest in other investments | (53,012) | (139,139) |
Other investing activities, net | (1,357) | 5,317 |
Cash flows provided by investing activities | 566,479 | 344,544 |
Cash flows from financing activities: | ||
Borrowings from debt obligations and convertible notes | 332,746 | 854,637 |
Repayments and repurchases of debt obligations | (412,215) | (632,237) |
Preferred dividends paid | (16,248) | (25,660) |
Repurchase of stock | (8,304) | 0 |
Payments for deferred financing costs | (4,921) | (12,243) |
Payments for withholding taxes upon vesting of stock-based compensation | (4,008) | (511) |
Payments for debt prepayment or extinguishment costs | 0 | (3,637) |
Distributions to noncontrolling interests | (43,174) | (12,759) |
Other financing activities, net | 8 | (661) |
Cash flows provided by (used in) financing activities | (156,116) | 166,929 |
Effect of exchange rate changes on cash | 30 | 7 |
Changes in cash, cash equivalents and restricted cash | 389,257 | 623,032 |
Cash, cash equivalents and restricted cash at beginning of period | 677,733 | 354,627 |
Cash, cash equivalents and restricted cash at end of period | 1,066,990 | 977,659 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Fundings and repayments of loan receivables and loan participations, net | (87,800) | (52,406) |
Accounts payable for capital expenditures on land and development assets | 12,473 | 2,984 |
Accounts payable for capital expenditures on real estate assets | 0 | 1,488 |
Receivable from sales of real estate and land parcels | 0 | 3,139 |
Acquisitions of land and development assets through foreclosure | 4,600 | 0 |
Financing provided on sales of land and development assets, net | 142,639 | 0 |
Increase in net lease assets upon consolidation of equity method investment | 844,550 | 0 |
Increase in debt obligations upon consolidation of equity method investment | 464,706 | 0 |
Increase To Noncontrolling Interest Upon Consolidation Of Equity Method Investment | $ 200,093 | |
Increase in noncontrolling interests upon consolidation of equity method investment | $ 0 |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Business —iStar Inc. (the "Company") finances, invests in and develops real estate and real estate related projects as part of its fully-integrated investment platform. The Company also provides management services for its ground lease equity method investment and net lease joint ventures (refer to Note 7). The Company has invested approximately $40 billion of capital over the past two decades and is structured as a real estate investment trust ("REIT") with a diversified portfolio focused on larger assets located in major metropolitan markets. The Company's primary reportable business segments are real estate finance, net lease, operating properties and land and development (refer to Note 17). Organization —The Company began its business in 1993 through the management of private investment funds and became publicly traded in 1998. Since that time, the Company has grown through the origination of new investments and corporate acquisitions. |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Basis of Presentation —The accompanying unaudited consolidated financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10-01 of Regulation S-X for interim financial statements. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. These unaudited consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 (the " 2017 Annual Report"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim periods or the entire year. Certain prior year amounts have been reclassified in the Company's consolidated financial statements and the related notes to conform to the current period presentation. Principles of Consolidation —The consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, controlled partnerships and VIEs for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The Company's involvement with VIEs affects its financial performance and cash flows primarily through amounts recorded in "Operating lease income," "Interest income," "Earnings from equity method investments," "Real estate expense" and "Interest expense" in the Company's consolidated statements of operations. The Company has provided no financial support to those VIEs that it was not previously contractually required to provide. Consolidated VIEs —The Company consolidates VIEs for which it is considered the primary beneficiary. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from each VIE's respective assets. The Company did not have any unfunded commitments related to consolidated VIEs as of June 30, 2018 . The following table presents the assets and liabilities of the Company's consolidated VIEs as of June 30, 2018 and December 31, 2017 ($ in thousands): As of June 30, 2018 December 31, ASSETS Real estate Real estate, at cost $ 817,979 $ 47,073 Less: accumulated depreciation (4,593 ) (2,732 ) Real estate, net 813,386 44,341 Land and development, net 242,213 212,408 Other investments 88 — Cash and cash equivalents 12,918 10,704 Accrued interest and operating lease income receivable, net 557 230 Deferred expenses and other assets, net 179,129 29,929 Total assets $ 1,248,291 $ 297,612 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 99,784 $ 38,616 Debt obligations, net 464,706 — Total liabilities 564,490 38,616 Unconsolidated VIEs —The Company has investments in VIEs where it is not the primary beneficiary and accordingly the VIEs have not been consolidated in the Company's consolidated financial statements. As of June 30, 2018 , the Company's maximum exposure to loss from these investments does not exceed the sum of the $88.5 million carrying value of the investments, which are classified in "Other investments" and "Loans receivable and other lending investments, net" on the Company's consolidated balance sheets, and $22.7 million of related unfunded commitments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The following paragraphs describe the impact on the Company's consolidated financial statements from the adoption of Accounting Standards Updates ("ASUs") on January 1, 2018. ASU 2014-09 — ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts with customers, including lease contracts and financial instruments and other contractual rights, are not within the scope of the new guidance. The Company's revenue within the scope of the guidance is primarily ancillary income related to its operating properties. The Company adopted ASU 2014-09 using the modified retrospective approach and the adoption did not have a material impact on the Company's consolidated financial statements. ASU 2016-01 and ASU 2018-03 — ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, provided technical corrections and improvements to ASU 2016-01. ASU 2016-01 requires entities to measure equity investments not accounted for under the equity method at fair value and recognize changes in fair value in net income. For equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. ASU 2016-01 also eliminated the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The adoption of ASU 2016-01 and ASU 2018-03 did not have a material impact on the Company's consolidated financial statements. ASU 2016-15 — ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"), was issued to reduce diversity in practice in how certain cash receipts and cash payments, including debt prepayment or debt extinguishment costs, distributions from equity method investees, and other separately identifiable cash flows, are presented and classified in the statement of cash flows. The adoption of ASU 2016-15 was retrospective and resulted in an increase to cash flows provided by operating activities of $9.3 million and a decrease to cash flows provided by financing activities of $9.3 million for the six months ended June 30, 2017 , primarily resulting from the reclassification of cash payments made related to the extinguishment of debt. ASU 2016-18 — ASU 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18"), requires that restricted cash be included with cash and cash equivalents when reconciling beginning and ending cash and cash equivalents on the statement of cash flows and requires disclosure of what is included in restricted cash. The adoption of ASU 2016-18 did not have a material impact on the Company's consolidated financial statements. The adoption of ASU 2016-18 was retrospective and resulted in a decrease to cash flows provided by operating activities of $0.7 million and a decrease to cash flows provided by investing activities of $1.8 million for the six months ended June 30, 2017 . The following table provides a reconciliation of the cash and cash equivalents and restricted cash reported in the Company's consolidated balance sheets that total to the same amount as reported in the consolidated statements of cash flows (in thousands): June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 Cash and cash equivalents $ 1,039,591 $ 657,688 $ 954,279 $ 328,744 Restricted cash included in deferred expenses and other assets, net (1) 27,399 20,045 23,380 25,883 Total cash, cash equivalents and restricted cash reported in the consolidated statements of cash flows $ 1,066,990 $ 677,733 $ 977,659 $ 354,627 _______________________________________________________________________________ (1) Restricted cash represents amounts required to be maintained under certain of the Company's debt obligations, loans, leasing, land development, sale and derivative transactions. ASU 2017-01 — The adoption of ASU 2017-01, Business Combinations: Clarifying the Definition of a Business ("ASU 2017-01"), did not have a material impact on the Company's consolidated financial statements. Under ASU 2017-01, certain transactions previously accounted for as business combinations under the former accounting guidance will be accounted for as asset acquisitions under ASU 2017-01. As a result, the Company expects more transaction costs to be capitalized relating to real estate acquisitions as a result of ASU 2017-01. ASU 2017-05 — ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets ("ASU 2017-05"), simplifies GAAP by eliminating several accounting differences between transactions involving assets and transactions involving businesses. The amendments in ASU 2017-05 require an entity to initially measure a retained noncontrolling interest in a nonfinancial asset at fair value consistent with how a retained noncontrolling interest in a business is measured. Also, if an entity transfers ownership interests in a consolidated subsidiary that is within the scope of ASC 610-20 and continues to have a controlling financial interest in that subsidiary, ASU 2017-05 requires the entity to account for the transaction as an equity transaction, which is consistent with how changes in ownership interests in a consolidated subsidiary that is a business are recorded when a parent retains a controlling financial interest in the business. The Company adopted ASU 2017-05 using the modified retrospective approach which was applied to all contracts. On January 1, 2018, the Company recorded a step-up in basis to fair value of its retained noncontrolling interest relating to the sale of its ground lease business (refer to Note 4) and other transactions where the Company sold or contributed real estate to a venture and previously recognized partial gains. Prior to the adoption of ASU 2017-05, the Company was required to recognize gains on only the portion of its interest transferred to third parties and was precluded from recognizing a gain on its retained noncontrolling interest which was carried at the Company’s historical cost basis. The adoption of ASU 2017-05 had the following impact on the Company's consolidated financial statements (in thousands): Impact from ASU 2017-05 on January 1, 2018 December 31, 2017 January 1, 2018 Other investments $ 321,241 $ 75,869 $ 397,110 Total assets 4,731,078 75,869 4,806,947 Retained earnings (deficit) $ (2,470,564 ) $ 75,869 $ (2,394,695 ) Total equity 914,249 75,869 990,118 ASU 2017-12 — ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted ASU 2017-12 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements — In June 2016 , the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments held by a reporting entity. This amendment replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company currently records a general reserve that covers performing loans and reserves for loan losses are recorded when: (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio; and (ii) the amount of the loss can be reasonably estimated. The formula-based general reserve is derived from estimated principal default probabilities and loss severities applied to groups of loans based upon risk ratings assigned to loans with similar risk characteristics during our quarterly loan portfolio assessment. The Company estimates loss rates based on historical realized losses experienced within its portfolio and take into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Management does not believe the guidance will have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. For operating leases, a lessee will be required to do the following: (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and (iii) classify all cash payments within operating activities in the statement of cash flows. In July 2018, the FASB issued ASU 2018-11, Leases (“ASU 2018-11”), to address two requirements of ASU 2016-02. ASU 2018-11 allows entities to recognize a cumulative-effect adjustment from the application of ASU 2016-02 to the opening balance of retained earnings in the period of adoption. In addition, ASU 2018-11 provides lessors with a practical expedient to not separate non-lease components from the associated lease component if certain conditions are met. For operating lease arrangements for which the Company is the lessee, primarily the lease of office space, the Company expects the impact of ASU 2016-02 to be the recognition of a right-of-use asset and lease liability on its consolidated balance sheets. The accounting applied by the Company as a lessor will be largely unchanged from that applied under previous GAAP. However, in certain instances, a new long-term lease of land subsequent to adoption could be classified as a sales-type lease, which could result in the Company derecognizing the underlying asset and recording a profit or loss on sale and the net investment in the lease. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the impact of the guidance on the Company's consolidated financial statements. |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate | Real Estate The Company's real estate assets were comprised of the following ($ in thousands): Net Lease (1) Operating Properties Total As of June 30, 2018 Land, at cost $ 335,926 $ 181,973 $ 517,899 Buildings and improvements, at cost 1,495,393 242,245 1,737,638 Less: accumulated depreciation (298,730 ) (41,808 ) (340,538 ) Real estate, net 1,532,589 382,410 1,914,999 Real estate available and held for sale (2) — 37,597 37,597 Total real estate $ 1,532,589 $ 420,007 $ 1,952,596 As of December 31, 2017 Land, at cost $ 219,092 $ 203,278 $ 422,370 Buildings and improvements, at cost 888,959 318,107 1,207,066 Less: accumulated depreciation (292,268 ) (55,137 ) (347,405 ) Real estate, net 815,783 466,248 1,282,031 Real estate available and held for sale (2) — 68,588 68,588 Total real estate $ 815,783 $ 534,836 $ 1,350,619 _______________________________________________________________________________ (1) On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $743.6 million to "Real estate, net" on the Company's consolidated balance sheet. (2) As of June 30, 2018 and December 31, 2017 , the Company had $36.7 million and $48.5 million , respectively, of residential condominiums available for sale in its operating properties portfolio. Disposition of Ground Lease Business— In April 2017, institutional investors acquired a controlling interest in the Company's ground lease business through the merger of a Company subsidiary and related transactions (the "Acquisition Transactions"). Ground leases generally represent ownership of the land underlying commercial real estate projects that is triple net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon ("Ground Lease"). The Company's Ground Lease business was a component of the Company's net lease segment and consisted of 12 properties subject to long-term net leases including seven Ground Leases and one master lease (covering five properties). The acquiring entity was a newly formed unconsolidated entity named Safety, Income & Growth Inc. ("SAFE"). The carrying value of the Company's Ground Lease assets was approximately $161.1 million . Shortly before the Acquisition Transactions, the Company completed the $227.0 million 2017 Secured Financing on its Ground Lease assets (refer to Note 10). The Company received all of the proceeds of the 2017 Secured Financing. The Company received an additional $113.0 million of proceeds in the Acquisition Transactions, including $55.5 million that the Company contributed to SAFE in its initial capitalization. As a result of the Acquisition Transactions, the Company deconsolidated the 12 properties and the associated 2017 Secured Financing. The Company accounts for its investment in SAFE as an equity method investment (refer to Note 7). The Company accounted for this transaction as an in substance sale of real estate and recognized a gain of $123.4 million , reflecting the aggregate gain less the fair value of the Company's retained interest in SAFE. As a result of the adoption of ASU 2017-05 (refer to Note 3), on January 1, 2018, the Company recorded an increase to retained earnings of $55.5 million , bringing the Company's aggregate gain on the sale of its Ground Lease business to approximately $178.9 million . Discontinued Operations— The transactions described above involving the Company's Ground Lease business qualified for discontinued operations and the following table summarizes income from discontinued operations for the three and six months ended June 30, 2017 ($ in thousands) (1)(2) : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Revenues $ 678 $ 5,922 Expenses (505 ) (1,491 ) Income from sales of real estate — 508 Income from discontinued operations $ 173 $ 4,939 _______________________________________________________________________________ (1) The transactions closed on April 14, 2017. Revenues primarily consisted of operating lease income and expenses primarily consisted of depreciation and amortization and real estate expense. (2) For the six months ended June 30, 2017, cash flows provided by operating activities and cash flows used in investing activities from discontinued operations was $5.7 million and $0.5 million , respectively. Other Dispositions— The following table presents the net proceeds and income recognized for properties sold, by property type ($ in millions): Six Months Ended June 30, 2018 2017 Operating Properties Proceeds (1) $ 196.2 $ 17.6 Income from sales of real estate (1) 49.0 2.7 Net Lease Proceeds (2) $ 38.4 $ 19.5 Income from sales of real estate (2) 24.9 6.2 Total Proceeds $ 234.6 $ 37.1 Income from sales of real estate 73.9 8.9 _______________________________________________________________________________ (1) During the six months ended June 30, 2018, the Company sold four operating properties and recognized $49.0 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations, of which $9.8 million was attributable to a noncontrolling interest at one of the properties. (2) During the six months ended June 30, 2018, the Company sold three net lease assets and recognized $24.9 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations. Impairments— During the six months ended June 30, 2018 , the Company recorded aggregate impairments of $8.9 million resulting from the exercise of a below-market lease renewal option related to a net lease asset and a real estate asset held for sale due to contracts to sell the remaining four condominium units at the property. During the six months ended June 30, 2017 , the Company recorded an impairment of $4.4 million on a real estate asset held for sale due to shifting demand in the local condominium market along with a change in the Company's exit strategy. Tenant Reimbursements— The Company receives reimbursements from tenants for certain facility operating expenses including common area costs, insurance, utilities and real estate taxes. Tenant expense reimbursements were $5.0 million and $10.6 million for the three and six months ended June 30, 2018 , respectively. Tenant expense reimbursements were $5.2 million and $10.7 million for the three and six months ended June 30, 2017, respectively. These amounts are included in "Operating lease income" in the Company's consolidated statements of operations. Allowance for Doubtful Accounts— As of June 30, 2018 and December 31, 2017 , the allowance for doubtful accounts related to real estate tenant receivables was $1.3 million and $1.3 million , respectively, and the allowance for doubtful accounts related to deferred operating lease income was $1.5 million and $1.3 million as of June 30, 2018 and December 31, 2017 , respectively. These amounts are included in "Accrued interest and operating lease income receivable, net" and "Deferred operating lease income receivable, net," respectively, on the Company's consolidated balance sheets. |
Land and Development
Land and Development | 6 Months Ended |
Jun. 30, 2018 | |
Land and development [Abstract] | |
Land and Development | Land and Development The Company's land and development assets were comprised of the following ($ in thousands): As of June 30, December 31, 2018 2017 Land and land development, at cost (1) $ 649,783 $ 868,692 Less: accumulated depreciation (8,156 ) (8,381 ) Total land and development, net $ 641,627 $ 860,311 _______________________________________________________________________________ (1) During the six months ended June 30, 2018 , the Company funded capital expenditures on land and development assets of $61.6 million . Acquisitions— During the six months ended June 30, 2018 , the Company acquired, via foreclosure, title to a land asset which had a total fair value of $4.6 million and had previously served as collateral for loans receivable held by the Company. No gain or loss was recorded in connection with this transaction. Dispositions— During the six months ended June 30, 2018 and 2017, the Company sold land parcels and residential lots and units and recognized land development revenue of $357.4 million and $152.8 million , respectively. In connection with the sale of two land parcels totaling 93 acres during the six months ended June 30, 2018 , the Company originated an aggregate $145.0 million of financing to the buyers. $81.2 million was repaid in the second quarter 2018. During the six months ended June 30, 2018 and 2017, the Company recognized land development cost of sales of $306.8 million and $138.4 million , respectively, from its land and development portfolio. In connection with the resolution of litigation involving a dispute over the purchase and sale of approximately 1,250 acres of land in Prince George’s County, Maryland, during the three and six months ended June 30, 2017, the Company recognized $114.0 million of land development revenue and $106.3 million of land development cost of sales. Impairments— During the six months ended June 30, 2018 , the Company recorded an impairment of $1.3 million on a land and development asset based upon market comparable sales. During the six months ended June 30, 2017, the Company recorded an impairment of $10.1 million on a land and development asset due to a change in the Company's exit strategy. |
Loans Receivable and Other Lend
Loans Receivable and Other Lending Investments, net | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans Receivable and Other Lending Investments, net | Loans Receivable and Other Lending Investments, net The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands): As of Type of Investment June 30, December 31, Senior mortgages $ 849,192 $ 791,152 Corporate/Partnership loans (1) 129,988 488,921 Subordinate mortgages 9,822 9,495 Total gross carrying value of loans 989,002 1,289,568 Reserves for loan losses (54,495 ) (78,489 ) Total loans receivable, net 934,507 1,211,079 Other lending investments—securities 118,365 89,576 Total loans receivable and other lending investments, net $ 1,052,872 $ 1,300,655 _______________________________________________________________________________ (1) In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million . Refer to "Impaired Loans" section below. Reserve for Loan Losses —Changes in the Company's reserve for loan losses were as follows ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Reserve for loan losses at beginning of period $ 69,466 $ 79,389 $ 78,489 $ 85,545 Provision for (recovery of) loan losses 18,892 (600 ) 18,037 (5,528 ) Charge-offs (33,863 ) — (42,031 ) (1,228 ) Reserve for loan losses at end of period $ 54,495 $ 78,789 $ 54,495 $ 78,789 The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands): Individually Evaluated for Impairment (1) Collectively Evaluated for Impairment (2) Total As of June 30, 2018 Loans $ 67,068 $ 927,074 $ 994,142 Less: Reserve for loan losses (40,395 ) (14,100 ) (54,495 ) Total (3) $ 26,673 $ 912,974 $ 939,647 As of December 31, 2017 Loans $ 237,877 $ 1,056,944 $ 1,294,821 Less: Reserve for loan losses (60,989 ) (17,500 ) (78,489 ) Total (3) $ 176,888 $ 1,039,444 $ 1,216,332 _______________________________________________________________________________ (1) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.5 million and $0.7 million as of June 30, 2018 and December 31, 2017 , respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status; therefore, the unamortized amounts associated with these loans are not currently being amortized into income. (2) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $3.7 million and net premiums of $6.2 million as of June 30, 2018 and December 31, 2017 , respectively. (3) The Company's recorded investment in loans as of June 30, 2018 and December 31, 2017 , including accrued interest of $5.1 million and $5.3 million , respectively, is included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. As of June 30, 2018 and December 31, 2017 , the total amounts exclude $118.4 million and $89.6 million , respectively, of securities that are evaluated for impairment under ASC 320. Credit Characteristics —As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments, which are inherently uncertain, and there can be no assurance that actual performance will be similar to current expectation. The Company designates loans as non-performing at such time as: (1) the loan becomes 90 days delinquent; (2) the loan has a maturity default; or (3) management determines it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan. All non-performing loans are placed on non-accrual status and income is only recognized in certain cases upon actual cash receipt. The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands): As of June 30, 2018 As of December 31, 2017 Performing Loans Weighted Average Risk Ratings Performing Loans Weighted Average Risk Ratings Senior mortgages $ 786,399 2.78 $ 713,057 2.72 Corporate/Partnership loans 130,823 2.85 334,364 2.85 Subordinate mortgages 9,852 3.00 9,523 3.00 Total $ 927,074 2.79 $ 1,056,944 2.77 The Company's recorded investment in loans, aged by payment status and presented by class, was as follows ($ in thousands): Current Less Than and Equal to 90 Days Greater Than 90 Days (1) Total Past Due Total As of June 30, 2018 Senior mortgages $ 792,399 $ — $ 61,068 $ 61,068 $ 853,467 Corporate/Partnership loans 130,823 — — — 130,823 Subordinate mortgages 9,852 — — — 9,852 Total $ 933,074 $ — $ 61,068 $ 61,068 $ 994,142 As of December 31, 2017 Senior mortgages $ 719,057 $ — $ 75,343 $ 75,343 $ 794,400 Corporate/Partnership loans 334,364 — 156,534 156,534 490,898 Subordinate mortgages 9,523 — — — 9,523 Total $ 1,062,944 $ — $ 231,877 $ 231,877 $ 1,294,821 _______________________________________________________________________________ (1) As of June 30, 2018 , the Company had two loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 3.0 to 9.0 years outstanding. As of December 31, 2017, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 1.0 to 9.0 years outstanding. Impaired Loans — In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million . The Company received a $45.8 million cash payment and a preferred equity position with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity at its fair value of $77.0 million and will accrue interest over the expected duration of the position. In addition, the Company recorded a $21.4 million loan loss provision and simultaneously charged-off of the remaining unpaid balance. The Company's recorded investment in impaired loans, presented by class, was as follows ($ in thousands) (1) : As of June 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded: Senior mortgages $ 67,068 $ 67,451 $ (40,395 ) $ 81,343 $ 81,431 $ (48,518 ) Corporate/Partnership loans — — — 156,534 145,849 (12,471 ) Total $ 67,068 $ 67,451 $ (40,395 ) $ 237,877 $ 227,280 $ (60,989 ) ____________________________________________________________ (1) All of the Company's non-accrual loans are considered impaired and included in the table above. The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average Interest Average Interest Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Subordinate mortgages $ — $ — $ 11,023 $ — $ — $ 92 $ 10,970 $ — Subtotal — — 11,023 — — 92 10,970 — With an allowance recorded: Senior mortgages 67,252 — 82,368 — 71,949 — 83,556 — Corporate/Partnership loans 78,338 — 156,839 — 104,403 — 156,941 — Subtotal 145,590 — 239,207 — 176,352 — 240,497 — Total: Senior mortgages 67,252 — 82,368 — 71,949 — 83,556 — Corporate/Partnership loans 78,338 — 156,839 — 104,403 — 156,941 — Subordinate mortgages — — 11,023 — — 92 10,970 — Total $ 145,590 $ — $ 250,230 $ — $ 176,352 $ 92 $ 251,467 $ — Securities —Other lending investments—securities include the following ($ in thousands): Face Value Amortized Cost Basis Net Unrealized Gain Estimated Fair Value Net Carrying Value As of June 30, 2018 Available-for-Sale Securities Municipal debt securities $ 21,185 $ 21,185 $ 655 $ 21,840 $ 21,840 Held-to-Maturity Securities Debt securities 119,538 96,525 378 96,903 96,525 Total $ 140,723 $ 117,710 $ 1,033 $ 118,743 $ 118,365 As of December 31, 2017 Available-for-Sale Securities Municipal debt securities $ 21,230 $ 21,230 $ 1,612 $ 22,842 $ 22,842 Held-to-Maturity Securities Debt securities 66,618 66,734 1,581 68,315 66,734 Total $ 87,848 $ 87,964 $ 3,193 $ 91,157 $ 89,576 As of June 30, 2018 , the contractual maturities of the Company's securities were as follows ($ in thousands): Held-to-Maturity Securities Available-for-Sale Securities Amortized Cost Basis Estimated Fair Value Amortized Cost Basis Estimated Fair Value Maturities Within one year $ 19,518 $ 19,896 $ — $ — After one year through 5 years 77,007 77,007 — — After 5 years through 10 years — — — — After 10 years — — 21,185 21,840 Total $ 96,525 $ 96,903 $ 21,185 $ 21,840 |
Other Investments
Other Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Other Investments | Other Investments The Company's other investments and its proportionate share of earnings from equity method investments were as follows ($ in thousands): Equity in Earnings (Losses) Carrying Value as of For the Three Months Ended June 30, For the Six Months June 30, 2018 December 31, 2017 2018 2017 2018 2017 Real estate equity investments iStar Net Lease I LLC ("Net Lease Venture") (1) $ — $ 121,139 $ 2,016 $ 1,032 $ 4,100 $ 2,013 Safety, Income & Growth Inc. ("SAFE") (2) 147,512 83,868 680 48 2,152 48 Other real estate equity investments (2) 138,716 102,616 (295 ) 4,075 (25 ) 8,549 Subtotal 286,228 307,623 2,401 5,155 6,227 10,610 Other strategic investments (3) 6,789 13,618 (9,679 ) 360 (10,173 ) 607 Total $ 293,017 $ 321,241 $ (7,278 ) $ 5,515 $ (3,946 ) $ 11,217 ____________________________________________________________ (1) The Company consolidated the assets and liabilities of the Net Lease Venture on June 30, 2018 (refer to Net Lease Venture below). (2) On January 1, 2018, the Company recorded a step-up in basis to fair value of its retained noncontrolling interest relating to the sale of its Ground Lease business (refer to Note 4) and other transactions where the Company sold or contributed real estate to a venture and previously recognized partial gains. Prior to the adoption of ASU 2017-05 (refer to Note 3), the Company was required to recognize gains on only the portion of its interest transferred to third parties and was precluded from recognizing a gain on its retained noncontrolling interest, which was carried at the Company’s historical cost basis. (3) For the three and six months ended June 30, 2018, equity in earnings (losses) includes a $10.0 million impairment on a foreign equity method investment due to local market conditions. Net Lease Venture —In February 2014, the Company partnered with a sovereign wealth fund to form a net lease venture (the "Net Lease Venture") to acquire and develop net lease assets and gave a right of first offer to the venture on all new net lease investments. The Company and its partner had joint decision making rights pertaining to the acquisition of new investments. Upon the expiration of the investment period on June 30, 2018, the Company obtained control of the venture through its unilateral rights of management and disposition of the assets. As a result, the expiration of the investment period resulted in a reconsideration event under GAAP and the Company determined that the Net Lease Venture is a VIE for which the Company is the primary beneficiary. Effective June 30, 2018, the Company consolidated the Net Lease Venture as an asset acquisition under ASC 810. The Company recorded a gain of $67.9 million in "Gain on consolidation of equity method investment" in the Company's consolidated statement of operations as a result of the consolidation. The Net Lease Venture had previously been accounted for as an equity method investment. The Company has an equity interest in the Net Lease Venture of approximately 51.9% and recorded a $188.3 million increase to "Noncontrolling interests" and $11.8 million increase to "Redeemable noncontrolling interest" on the Company's consolidated balance sheet as a result of the consolidation. The Company is responsible for managing the venture in exchange for a management fee and incentive fee. Several of the Company's senior executives whose time is substantially devoted to the Net Lease Venture have a 0.6% equity ownership in the venture via co-investment. These senior executives are also entitled to an amount equal to 50.0% of any incentive fee received based on the 47.5% partner's interest. In July 2018, the Company entered into a new venture ("Net Lease Venture II") with similar investment strategies as the Net Lease Venture. The Net Lease Venture II has a right of first offer on all new net lease investments originated by the Company. The Company has an equity interest in the new venture of approximately 51.9% , which will be accounted for as an equity method investment, and is responsible for managing the venture in exchange for a management fee and incentive fee. During the three and six months ended June 30, 2018 , the Company recorded management fees of $0.7 million and $1.3 million , respectively, and $0.5 million and $0.9 million during the three and six months ended June 30, 2017, respectively, from the Net Lease Venture which are included in "Other income" in the Company's consolidated statements of operations. Safety, Income & Growth Inc. —The Company and two institutional investors capitalized SIGI Acquisition, Inc. ("SIGI") on April 14, 2017 to acquire, manage and capitalize Ground Leases. The Company contributed $55.5 million for an initial 49.1% noncontrolling interest in SIGI and the two institutional investors contributed an aggregate $57.5 million for an initial 50.9% controlling interest in SIGI. A wholly-owned subsidiary of the Company that held the Company's Ground Lease business and assets merged with and into SIGI on April 14, 2017 with SIGI surviving the merger and being renamed Safety, Income & Growth Inc. ("SAFE"). Through this merger and related transactions, the institutional investors acquired a controlling interest in the Company's Ground Lease business. The Company's carrying value of the Ground Lease assets was approximately $161.1 million . Shortly before the Acquisition Transactions, the Company completed the $227.0 million 2017 Secured Financing on its Ground Lease assets (refer to Note 10). The Company received all of the proceeds of the 2017 Secured Financing. The Company received an additional $113.0 million of proceeds in the Acquisition Transactions, including $55.5 million that the Company contributed to SAFE in its initial capitalization. As a result of the Acquisition Transactions, the Company deconsolidated the 12 properties and the associated 2017 Secured Financing. The Company accounted for this transaction as an in substance sale of real estate and recognized a gain of $123.4 million , reflecting the aggregate gain less the fair value of the Company's retained interest in SAFE. As a result of the adoption of ASU 2017-05, on January 1, 2018, the Company recorded an increase to retained earnings of $55.5 million , bringing the Company's aggregate gain on the sale of its Ground Lease business to approximately $178.9 million . On June 27, 2017, SAFE completed its initial public offering (the "Offering") raising $205.0 million in gross proceeds and concurrently completed a $45.0 million private placement to the Company. In addition, the Company paid $18.9 million in organization and offering costs of the up to $25.0 million in organization and offering costs it agreed to pay in connection with the Offering and concurrent private placement. The Company expensed the portion of offering costs that was attributable to other investors in "Other expense" in the Company's consolidated statements of operations and capitalized the portion of offering costs attributable to the Company's ownership interest in "Other investments" on the Company's consolidated balance sheets. Subsequent to the initial public offering, the Company purchased 2.2 million shares of SAFE's common stock for $41.7 million , representing an average cost of $18.67 per share, pursuant to two 10b5-1 plans in accordance with Rules 10b5-1 and 10b-18 under the Securities and Exchange Act of 1934, as amended, under which the Company could buy shares of SAFE's common stock in the open market. As of June 30, 2018 , the Company owned approximately 39.8% of SAFE's common stock outstanding. In addition, subsequent to SAFE's initial public offering, trusts established by Jay Sugarman, the Company's Chairman and Chief Executive Officer, and Geoffrey Jervis, the Company's former Chief Operating Officer and former Chief Financial Officer, purchased 26,000 shares in the aggregate of SAFE's common stock for an aggregate $0.5 million , representing an average cost of $19.20 per share, pursuant to a 10b5-1 plan in accordance with Rules 10b5-1 and 10b-18 under the Securities and Exchange Act of 1934, as amended. A wholly-owned subsidiary of the Company is the external manager of SAFE and is entitled to a management fee, payable solely in shares of SAFE's common stock, equal to the sum of 1.0% of SAFE's total equity up to $2.5 billion and 0.75% of SAFE's total equity in excess of $2.5 billion . The Company is not entitled to receive any performance or incentive compensation. The Company is also entitled to receive expense reimbursements, including for the allocable costs of its personnel that perform certain legal, accounting, due diligence tasks and other services that third-party professionals or outside consultants otherwise would perform. The Company waived both the management fee and certain of the expense reimbursements through June 30, 2018. For the three and six months ended June 30, 2018 , the Company waived $0.9 million and $1.8 million , respectively, of management fees and $0.4 million and $0.8 million , respectively, of expense reimbursements. The Company has an exclusivity agreement with SAFE pursuant to which it agreed, subject to certain exceptions, that it will not acquire, originate, invest in, or provide financing for a third party’s acquisition of, a Ground Lease unless it has first offered that opportunity to SAFE and a majority of its independent directors has declined the opportunity. In August 2017, the Company committed to provide a $24.0 million loan to the ground lessee of a Ground Lease originated at SAFE. The loan has an initial term of one year and will be used for the renovation of a medical office building in Atlanta, GA. $13.0 million of the loan was funded as of June 30, 2018 . The transaction was approved by the Company's and SAFE's independent directors. In October 2017, the Company closed on a 99 -year Ground Lease and a $80.5 million construction financing commitment to support the ground-up development of Great Oaks Multifamily, a to-be-built 301 -unit community within the Great Oaks Master Plan of San Jose, CA. The transaction includes a combination of: (i) a newly created Ground Lease and up to a $7.2 million leasehold improvement allowance; and (ii) a $80.5 million leasehold first mortgage. The Company entered into a forward purchase contract with SAFE under which SAFE would acquire the Ground Lease in November 2020 for approximately $34.0 million . The forward purchase contract was approved by the Company's and SAFE's independent directors. In May 2018, the Company provided a $19.9 million mortgage loan to the ground lessee of a Ground Lease originated at SAFE. The loan has an initial term of one year and will be used for the acquisition of 100 and 200 Glenridge Point, two multi-tenant office buildings in Atlanta, GA. The transaction was approved by the Company's and SAFE's independent directors. In June 2018, the Company sold two industrial facilities located in Miami, FL to a third-party and simultaneously structured and entered into two Ground Leases. The Company then sold the two Ground Leases to SAFE. Net proceeds from the transactions totaled $36.1 million and the Company recognized a $24.5 million gain on sale. The transactions were approved by the Company's and SAFE's independent directors. Other real estate equity investments —As of June 30, 2018 , the Company's other real estate equity investments include equity interests in real estate ventures ranging from 15.5% to 95.0% , comprised of investments of $62.0 million in operating properties and $76.7 million in land assets. As of December 31, 2017 , the Company's other real estate equity investments included $38.8 million in operating properties and $61.3 million in land assets. In December 2016, the Company sold a land and development asset to a newly formed unconsolidated entity in which the Company owns a 50.0% equity interest. This entity is a VIE and the Company does not have a controlling interest due to shared control of the entity with its partner. The Company and its partner each made a $7.0 million contribution to the venture and the Company provided financing to the entity in the form of a $27.0 million senior loan commitment, of which $26.8 million and $25.4 million was funded as of June 30, 2018 and December 31, 2017 , respectively, and is included in "Loans receivable and other lending investments, net" on the Company's consolidated balance sheets. During the three and six months ended June 30, 2018 , the Company recorded $0.5 million and $1.0 million of interest income, respectively, on the senior loan. During the three and six months ended June 30, 2017, the Company recorded $0.5 million and $0.9 million of interest income, respectively, on the senior loan. Other strategic investments —As of June 30, 2018 and December 31, 2017, the Company also had investments in real estate related funds and other strategic investments in real estate entities. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets and Other Liabilities [Abstract] | |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of June 30, 2018 December 31, 2017 Intangible assets, net (1) $ 162,014 $ 27,124 Other receivables (2) 47,355 56,369 Other assets (3) 29,952 23,081 Restricted cash 27,399 20,045 Leasing costs, net (4) 7,141 9,050 Corporate furniture, fixtures and equipment, net (5) 4,362 4,652 Deferred financing fees, net 1,167 1,409 Deferred expenses and other assets, net $ 279,390 $ 141,730 _______________________________________________________________________________ (1) Intangible assets, net includes above market and in-place lease assets and lease incentives related to the acquisition of real estate assets. Accumulated amortization on intangible assets, net was $30.9 million and $34.9 million as of June 30, 2018 and December 31, 2017 , respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.4 million and $0.8 million for the three and six months ended June 30, 2018 , respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.8 million and $1.6 million for the three and six months ended June 30, 2017 , respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $0.4 million and $0.7 million for the three and six months ended June 30, 2018 , respectively. The amortization expense for in-place leases was $0.7 million and $1.2 million for the three and six months ended June 30, 2017 , respectively. These amounts are included in "Depreciation and amortization" in the Company's consolidated statements of operations. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $135.3 million of intangible assets to "Deferred expenses and other assets, net" on the Company's consolidated balance sheet. (2) As of June 30, 2018 and December 31, 2017 , includes $26.5 million and $26.0 million , respectively, of reimbursements receivable related to the construction and development of an operating property. (3) Other assets primarily includes prepaid expenses and deposits for certain real estate assets. (4) Accumulated amortization of leasing costs was $3.9 million and $4.7 million as of June 30, 2018 and December 31, 2017 , respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $11.2 million and $10.5 million as of June 30, 2018 and December 31, 2017 , respectively. Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of June 30, 2018 December 31, 2017 Accrued expenses (1) $ 87,734 $ 101,035 Other liabilities (2) 69,368 79,015 Accrued interest payable 50,359 49,933 Intangible liabilities, net (3) 42,033 8,021 Accounts payable, accrued expenses and other liabilities $ 249,494 $ 238,004 _______________________________________________________________________________ (1) As of June 30, 2018 and December 31, 2017 , accrued expenses includes $2.3 million and $2.5 million , respectively, associated with "Real estate available and held for sale" on the Company's consolidated balance sheets. (2) As of June 30, 2018 and December 31, 2017 , other liabilities includes $18.5 million and $29.2 million , respectively, related to profit sharing arrangements with developers for certain properties sold. As of June 30, 2018 and December 31, 2017 , includes $0.7 million and $1.6 million , respectively, associated with "Real estate available and held for sale" on the Company's consolidated balance sheets. As of June 30, 2018 and December 31, 2017 , other liabilities also includes $4.3 million and $6.2 million , respectively, related to tax increment financing bonds which were issued by government entities to fund development within two of the Company's land projects. The amount represents tax assessments associated with each project, which will decrease as the Company sells units. (3) Intangible liabilities, net includes below market lease liabilities related to the acquisition of real estate assets. Accumulated amortization on below market lease liabilities was $5.9 million and $7.8 million as of June 30, 2018 and December 31, 2017 , respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.1 million and $0.3 million for the three and six months ended June 30, 2018 , respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.8 million and $1.0 million for the three and six months ended June 30, 2017 , respectively. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $34.3 million of intangible liabilities to "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheet. |
Loan Participations Payable, ne
Loan Participations Payable, net | 6 Months Ended |
Jun. 30, 2018 | |
Loan Participations Payable [Abstract] | |
Loan Participations Payable, net | Loan Participations Payable, net The Company's loan participations payable, net were as follows ($ in thousands): Carrying Value as of June 30, 2018 December 31, 2017 Loan participations payable (1) $ 14,938 $ 102,737 Debt discounts and deferred financing costs, net (229 ) (312 ) Total loan participations payable, net $ 14,709 $ 102,425 _______________________________________________________________________________ (1) One loan participation payable with a carrying value of $93.8 million and a corresponding loan receivable balance of $93.6 million was fully repaid during the six months ended June 30, 2018. As of June 30, 2018 , the Company had one loan participation payable with an interest rate of 6.6% . As of December 31, 2017, the Company had two loan participations payable with a weighted average interest rate of 6.5% . Loan participations represent transfers of financial assets that did not meet the sales criteria established under ASC Topic 860 and are accounted for as loan participations payable, net as of June 30, 2018 and December 31, 2017 . As of June 30, 2018 and December 31, 2017 , the corresponding loan receivable balances were $14.7 million and $102.3 million , respectively, and are included in "Loans receivable and other lending investments, net" on the Company's consolidated balance sheets. The principal and interest due on these loan participations payable are paid from cash flows of the corresponding loans receivable, which serve as collateral for the participations. |
Debt Obligations, net
Debt Obligations, net | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt Obligations, net | Debt Obligations, net The Company's debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled June 30, 2018 December 31, 2017 Secured credit facilities and mortgages: 2015 $325 million Revolving Credit Facility $ — $ 325,000 LIBOR + 2.50% (1) September 2020 2016 Senior Term Loan 650,000 399,000 LIBOR + 2.75% (2) June 2023 Mortgages collateralized by net lease assets (3) 670,872 208,491 3.62% - 7.26% (4) Total secured credit facilities and mortgages 1,320,872 932,491 Unsecured notes: 5.00% senior notes (5) 770,000 770,000 5.00 % July 2019 4.625% senior notes (6) 400,000 400,000 4.625 % September 2020 6.50% senior notes (7) 275,000 275,000 6.50 % July 2021 6.00% senior notes (8) 375,000 375,000 6.00 % April 2022 5.25% senior notes (9) 400,000 400,000 5.25 % September 2022 3.125% senior convertible notes (10) 287,500 287,500 3.125 % September 2022 Total unsecured notes 2,507,500 2,507,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50% October 2035 Total debt obligations 3,928,372 3,539,991 Debt discounts and deferred financing costs, net (58,796 ) (63,591 ) Total debt obligations, net (11) $ 3,869,576 $ 3,476,400 _______________________________________________________________________________ (1) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.25% to 1.75% ; or (ii) LIBOR subject to a margin ranging from 2.25% to 2.75% . At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2021. (2) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin of 1.75% ; or (ii) LIBOR subject to a margin of 2.75% . (3) On June 30, 2018, the Company consolidated the Net Lease Venture and recorded $464.7 million to "Debt obligations, net" on the Company's consolidated balance sheet. (4) As of June 30, 2018 , the weighted average interest rate of these loans is 4.6% , inclusive of the effect interest rate swaps. (5) The Company can prepay these senior notes without penalty. In July 2018, the Company redeemed $273.0 million of the 5.00% senior notes. (6) The Company can prepay these senior notes without penalty beginning June 15, 2020. (7) The Company can prepay these senior notes without penalty beginning July 1, 2020. (8) The Company can prepay these senior notes without penalty beginning April 1, 2021. (9) The Company can prepay these senior notes without penalty beginning September 15, 2021. (10) The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at a conversion rate of 64.36 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $15.54 per share, at any time prior to the close of business on the business day immediately preceding September 15, 2022. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. As such, at issuance in September 2017, the Company valued the debt component at $221.8 million , net of fees, and the equity component of the conversion feature at $22.5 million , net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the debt component at $34.0 million , net of fees, and the equity component of the conversion feature at $3.4 million , net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of June 30, 2018 , the carrying value of the 3.125% Convertible Notes was $259.6 million , net of fees, and the unamortized discount of the 3.125% Convertible Notes was $22.9 million , net of fees. During the three and six months ended June 30, 2018 , the Company recognized $2.2 million and $4.5 million , respectively, of contractual interest and $1.2 million and $2.3 million , respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2% . (11) The Company capitalized interest relating to development activities of $2.1 million and $4.5 million during the three and six months ended June 30, 2018 , respectively, and $2.0 million and $4.0 million during the three and six months ended June 30, 2017 , respectively. Future Scheduled Maturities —As of June 30, 2018 , future scheduled maturities of outstanding debt obligations are as follows ($ in thousands): Unsecured Debt (1) Secured Debt Total 2018 (remaining six months) $ — $ 90,186 $ 90,186 2019 770,000 1,054 771,054 2020 400,000 — 400,000 2021 275,000 269,647 544,647 2022 1,062,500 57,992 1,120,492 Thereafter 100,000 901,993 1,001,993 Total principal maturities 2,607,500 1,320,872 3,928,372 Unamortized discounts and deferred financing costs, net (48,784 ) (10,012 ) (58,796 ) Total debt obligations, net $ 2,558,716 $ 1,310,860 $ 3,869,576 _______________________________________________________________________________ (1) In July 2018, the Company redeemed $273.0 million of senior notes. 2017 Secured Financing —In March 2017, the predecessor of SAFE (which at the time was comprised of the Company's wholly-owned subsidiaries conducting its Ground Lease business) entered into a $227.0 million secured financing transaction (the "2017 Secured Financing") that accrued interest at 3.795% and matures in April 2027 . The 2017 Secured Financing was collateralized by the 12 properties comprising SAFE's initial portfolio. In connection with the 2017 Secured Financing, the Company incurred $7.3 million of lender and third-party fees, substantially all of which was capitalized in "Debt obligations, net" on the Company's consolidated balance sheets. In April 2017, the Company derecognized the 2017 Secured Financing when third parties acquired a controlling interest in SAFE's predecessor, prior to SAFE's initial public offering (refer to Note 4). The Company is providing a limited recourse guaranty and environmental indemnity under the 2017 Secured Financing that will remain in effect until SAFE has achieved either an equity market capitalization of at least $500.0 million (inclusive of the initial portfolio that the Company contributed to SAFE) or a net worth of at least $250.0 million (exclusive of the initial portfolio that the Company contributed to SAFE), and SAFE or another replacement guarantor provides similar guaranties and indemnities to the lenders. The management agreement with SAFE provides that SAFE may not terminate the management agreement unless a successor guarantor reasonably acceptable to the Company has agreed to replace the Company as guarantor and indemnitor or has provided the Company with a reasonably acceptable indemnity for any losses suffered by the Company as guarantor and indemnitor. SAFE has generally agreed to indemnify the Company for any amounts the Company is required to pay, or other losses the Company may suffer, under the limited recourse guaranty and environmental indemnity. 2016 Senior Term Loan —In June 2016, the Company entered into a senior term loan of $450.0 million (the "2016 Senior Term Loan"). In August 2016, the Company upsized the facility to $500.0 million . The initial $450.0 million of the 2016 Senior Term Loan was issued at 99% of par and the upsize was issued at par. In September 2017, the Company reduced, repriced and extended the 2016 Senior Term Loan to $400.0 million priced at LIBOR plus 3.00% with a 0.75% LIBOR floor and maturing in October 2021 . In June 2018, the Company increased the 2016 Senior Term Loan to $650.0 million , re-priced at LIBOR plus 2.75% and extended its maturity to June 2023. The facility was also modified to permit substitution of collateral, subject to overall collateral pool coverage and concentration limits, over the life of the facility. This modification eliminates the mandatory amortization upon payoff or sale of collateral which existed prior to the upsize and broadens the types of collateral permitted under the facility. The Company may make optional prepayments, subject to prepayment fees, and is required to repay 0.25% of the principal amount on the first business day of each quarter. During the three and six months ended June 30, 2018 , repayments of the 2016 Senior Term Loan prior to its modification and the modification and upsize of the 2016 Senior Term Loan resulted in losses on early extinguishment of debt of $2.2 million and $2.5 million , respectively. 2015 Revolving Credit Facility —In March 2015, the Company entered into a secured revolving credit facility with a maximum capacity of $250.0 million (the "2015 Revolving Credit Facility"). In September 2017, the Company upsized the 2015 Revolving Credit Facility to $325.0 million , added additional lenders to the syndicate, extended the maturity date to September 2020 and made certain other changes. This facility is secured by a pledge of the equity interest in a pool of assets which provide asset value coverage for borrowings under the facility. Borrowings under this credit facility bear interest at a floating rate indexed to one of several base rates plus a margin which adjusts upward or downward based upon the Company's corporate credit rating. An undrawn credit facility commitment fee ranges from 0.30% to 0.50% , based on corporate credit ratings. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2021. During the six months ended June 30, 2018 , the Company repaid from cash on hand the $325.0 million outstanding on the 2015 Revolving Credit Facility and as of June 30, 2018 , based on the Company's borrowing base of assets, the Company had $325.0 million of borrowing capacity available under the 2015 Revolving Credit Facility. Unsecured Notes —In September 2017, the Company issued $400.0 million principal amount of 4.625% senior unsecured notes due September 2020, $400.0 million principal amount of 5.25% senior unsecured notes due September 2022 and $250.0 million of 3.125% Convertible Notes due September 2022. The Company incurred approximately $18.6 million in fees related to these offerings, all of which was capitalized in "Debt obligations, net" on the Company's consolidated balance sheets. Proceeds from these offerings, together with cash on hand, were used to repay in full the $550.0 million principal amount outstanding of the 4.0% senior unsecured notes due November 2017, the $300.0 million principal amount outstanding of the 7.125% senior unsecured notes due February 2018 and the $300.0 million principal amount outstanding of the 4.875% senior unsecured notes due July 2018. In addition, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. Collateral Assets —The carrying value of the Company's assets that are directly pledged or are held by subsidiaries whose equity is pledged as collateral to secure the Company's obligations under its secured debt facilities are as follows, by asset type ($ in thousands): As of June 30, 2018 December 31, 2017 Collateral Assets (1) Non-Collateral Assets Collateral Assets (1) Non-Collateral Assets Real estate, net $ 1,583,330 $ 331,669 $ 795,321 $ 486,710 Real estate available and held for sale — 37,597 20,069 48,519 Land and development, net 10,100 631,527 25,100 835,211 Loans receivable and other lending investments, net (2)(3) 523,425 528,812 194,529 1,021,340 Other investments — 293,017 — 321,241 Cash and other assets — 1,418,055 — 898,252 Total $ 2,116,855 $ 3,240,677 $ 1,035,019 $ 3,611,273 _______________________________________________________________________________ (1) The 2016 Senior Term Loan and the 2015 Revolving Credit Facility are secured only by pledges of equity of certain of the Company's subsidiaries and not by pledges of the assets held by such subsidiaries. Such subsidiaries are subject to contractual restrictions under the terms of such credit facilities, including restrictions on incurring new debt (subject to certain exceptions). As of June 30, 2018, Collateral Assets includes $423.6 million carrying value of assets held by entities pledged as collateral for the $325.0 million 2015 Revolving Credit Facility that is fully undrawn as of June 30, 2018. (2) As of June 30, 2018 and December 31, 2017 , the amounts presented exclude general reserves for loan losses of $14.1 million and $17.5 million , respectively. (3) As of June 30, 2018 and December 31, 2017 , the amounts presented exclude loan participations of $14.7 million and $102.3 million , respectively. Debt Covenants The Company's outstanding unsecured debt securities contain corporate level covenants that include a covenant to maintain a ratio of unencumbered assets to unsecured indebtedness, as such terms are defined in the indentures governing the debt securities, of at least 1.2 x and a covenant not to incur additional indebtedness (except for incurrences of permitted debt), if on a pro forma basis the Company's consolidated fixed charge coverage ratio, determined in accordance with the indentures governing the Company's debt securities, is 1.5 x or lower. If any of the Company's covenants are breached and not cured within applicable cure periods, the breach could result in acceleration of its debt securities unless a waiver or modification is agreed upon with the requisite percentage of the bondholders. If the Company's ability to incur additional indebtedness under the fixed charge coverage ratio is limited, the Company is permitted to incur indebtedness for the purpose of refinancing existing indebtedness and for other permitted purposes under the indentures. The Company's 2016 Senior Term Loan and the 2015 Revolving Credit Facility contain certain covenants, including covenants relating to collateral coverage, restrictions on fundamental changes, transactions with affiliates, matters relating to the liens granted to the lenders and the delivery of information to the lenders. In particular, the 2016 Senior Term Loan requires the Company to maintain collateral coverage of at least 1.25 x outstanding borrowings on the facility. The 2015 Revolving Credit Facility is secured by a borrowing base of assets and requires the Company to maintain both borrowing base asset value of at least 1.5 x outstanding borrowings on the facility and a consolidated ratio of cash flow to fixed charges of at least 1.5 x. The 2015 Revolving Credit Facility does not require that proceeds from the borrowing base be used to pay down outstanding borrowings provided the borrowing base asset value remains at least 1.5 x outstanding borrowings on the facility. To satisfy this covenant, the Company has the option to pay down outstanding borrowings or substitute assets in the borrowing base. The Company may not pay common dividends if it ceases to qualify as a REIT. In June 2018, the Company amended the terms of the 2016 Senior Term Loan and the 2015 Revolving Credit Facility to include the ability to pay common dividends with no restrictions so long as the Company is not in default on any of its debt obligations. The Company's 2016 Senior Term Loan and the 2015 Revolving Credit Facility contain cross default provisions that would allow the lenders to declare an event of default and accelerate the Company's indebtedness to them if the Company fails to pay amounts due in respect of its other recourse indebtedness in excess of specified thresholds or if the lenders under such other indebtedness are otherwise permitted to accelerate such indebtedness for any reason. The indentures governing the Company's unsecured public debt securities permit the bondholders to declare an event of default and accelerate the Company's indebtedness to them if the Company's other recourse indebtedness in excess of specified thresholds is not paid at final maturity or if such indebtedness is accelerated. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unfunded Commitments —The Company generally funds construction and development loans and build-outs of space in real estate assets over a period of time if and when the borrowers and tenants meet established milestones and other performance criteria. The Company refers to these arrangements as Performance-Based Commitments. In addition, the Company has committed to invest capital in several real estate funds and other ventures. These arrangements are referred to as Strategic Investments. As of June 30, 2018 , the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands): Loans and Other Lending Investments (1) Real Estate Other Investments Total Performance-Based Commitments $ 505,345 $ 9,774 $ 15,024 $ 530,143 Strategic Investments — — 9,322 9,322 Total $ 505,345 $ 9,774 $ 24,346 $ 539,465 _______________________________________________________________________________ (1) Excludes $35.1 million of commitments on loan participations sold that are not the obligation of the Company. Legal Proceedings —The Company and/or one or more of its subsidiaries is party to various pending litigation matters that are considered ordinary routine litigation incidental to the Company's business as a finance and investment company focused on the commercial real estate industry, including foreclosure-related proceedings. The Company believes it is not a party to, nor are any of its properties the subject of, any pending legal proceeding that would have a material adverse effect on the Company’s consolidated financial statements. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company's use of derivative financial instruments has historically been limited to the utilization of interest rate swaps, interest rate caps and foreign exchange contracts. The principal objective of such financial instruments is to minimize the risks and/or costs associated with the Company's operating and financial structure and to manage its exposure to interest rates and foreign exchange rates. The Company may have derivatives that are not designated as hedges because they do not meet the strict hedge accounting requirements. Although not designated as hedges, such derivatives are entered into to manage the Company's exposure to interest rate movements, foreign exchange rate movements and other identified risks. The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets ($ in thousands) (1) : Derivative Assets as of Derivative Liabilities as of June 30, 2018 June 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated in Hedging Relationships Interest rate swaps Other assets $ 8,120 Other liabilities $ (1,150 ) Total $ 8,120 $ (1,150 ) _________________________________________________________ (1) The Company did not directly own any derivative financial instruments as of December 31, 2017. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7), including all derivative financial instruments of the venture. Over the next 12 months, the Company expects that $0.4 million related to cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" as a reduction to interest expense. As of June 30, 2018, the Company would not have been required to post any additional collateral to settle these contracts had the Company been declared in default on its derivative obligations. The tables below present the effect of the Company's derivative financial instruments, including the Company's share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Derivatives Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings For the Three Months Ended June 30, 2018 Interest rate swaps Earnings from equity method investments $ 1,157 $ 81 Interest rate swaps Interest expense (1,150 ) — For the Three Months Ended June 30, 2017 Interest rate swaps Interest Expense (44 ) 384 Interest rate cap Earnings from equity method investments (9 ) (9 ) Interest rate swap Earnings from equity method investments (93 ) (62 ) Foreign exchange contracts Earnings from equity method investments (70 ) — For the Six Months Ended June 30, 2018 Interest rate swaps Earnings from equity method investments 3,508 90 Interest rate swaps Interest expense (1,150 ) — For the Six Months Ended June 30, 2017 Interest rate swaps Interest Expense 424 355 Interest rate cap Earnings from equity method investments (14 ) (14 ) Interest rate swap Earnings from equity method investments (15 ) (150 ) Foreign exchange contracts Earnings from equity method investments (369 ) — Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Derivatives not Designated in Hedging Relationships For the Three Months Ended June 30, For the Six Months 2018 2017 2018 2017 Interest rate cap Other Expense $ — $ (41 ) $ — $ 6 Foreign exchange contracts Other Expense — (645 ) — (769 ) During the six months ended June 30, 2017, the Company entered into and settled a rate lock swap in connection with the 2017 Secured Financing and a simultaneous rate lock swap with SAFE. As a result of the settlements, the Company initially recorded a $0.4 million unrealized gain in “Accumulated other comprehensive income” on the Company’s consolidated balance sheets and subsequently derecognized the gain when third parties acquired a controlling interest in the Company's Ground Lease business (refer to Note 4). |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | Equity Preferred Stock —The Company had the following series of Cumulative Redeemable and Convertible Perpetual Preferred Stock outstanding as of June 30, 2018 and December 31, 2017: Cumulative Preferential Cash Dividends (1)(2) Series Shares Issued and Outstanding (in thousands) Par Value Liquidation Preference (3)(4) Rate per Annum Equivalent to Fixed Annual Rate (per share) Carrying Value (in thousands) D 4,000 $ 0.001 $ 25.00 8.00 % $ 2.00 $ 89,041 G 3,200 0.001 25.00 7.65 % 1.91 72,664 I 5,000 0.001 25.00 7.50 % 1.88 120,785 J (convertible) (4) 4,000 0.001 50.00 4.50 % 2.25 193,510 16,200 $ 476,000 ________________________________________ (1) Holders of shares of the Series D, G, I and J preferred stock are entitled to receive dividends, when and as declared by the Company's Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360 -day year consisting of twelve 30 -day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Company's Board of Directors for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date. (2) The Company declared and paid dividends of $4.0 million , $3.1 million and $4.7 million on its Series D, G and I Cumulative Redeemable Preferred Stock during the six months ended June 30, 2018 and 2017 , respectively. The Company declared and paid dividends of $4.5 million on its Series J Convertible Perpetual Preferred Stock during the six months ended June 30, 2018 and 2017 . The Company declared and paid dividends of $5.5 million and $3.9 million on its Series E and F Cumulative Redeemable Preferred Stock, respectively, during the six months ended June 30, 2017. The Company redeemed all of its issued and outstanding Series E and F Cumulative Redeemable Preferred Stock in October 2017. The character of the 2017 dividends was 100% capital gain distribution, of which 27.90% represented unrecaptured section 1250 gain and 72.10% represented long term capital gain. There are no dividend arrearages on any of the preferred shares currently outstanding. (3) The Company may, at its option, redeem the Series G and I Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. (4) Each share of the Series J Preferred Stock is convertible at the holder's option at any time, initially into 3.9087 shares of the Company's common stock (equal to an initial conversion price of approximately $12.79 per share), subject to specified adjustments. On or after March 15, 2018, the Company may, at its option, redeem the Series J Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $50.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. Dividends —To maintain its qualification as a REIT, the Company must annually distribute, at a minimum, an amount equal to 90% of its taxable income, excluding net capital gains, and must distribute 100% of its taxable income (including net capital gains) to eliminate corporate federal income taxes payable by the REIT. The Company has recorded NOLs and may record NOLs in the future, which may reduce its taxable income in future periods and lower or eliminate entirely the Company's obligation to pay dividends for such periods in order to maintain its REIT qualification. As of December 31, 2016, the Company had $948.8 million of NOL carryforwards at the corporate REIT level that can generally be used to offset both ordinary taxable income and capital gain net income in future years. The NOL carryforwards will expire beginning in 2029 and through 2036 if unused. The Company estimates that the amount of NOL carryforwards as of December 31, 2017 will be approximately $588 million ; however, the actual NOL carryforward as of December 31, 2017 will be determined upon filing the Company's 2017 tax return. Because taxable income differs from cash flow from operations due to non-cash revenues and expenses (such as depreciation and certain asset impairments), in certain circumstances, the Company may generate operating cash flow in excess of its dividends, or alternatively, may need to make dividend payments in excess of operating cash flows. The 2016 Senior Term Loan and the 2015 Revolving Credit Facility permit the Company to pay common dividends with no restrictions so long as the Company is not in default on any of its debt obligations. The Company did not declare or pay any common stock dividends for the six months ended June 30, 2018 and 2017 . Stock Repurchase Program —The Company may repurchase shares in negotiated transactions or open market transactions, including through one or more trading plans. During the three months ended March 31, 2018, the Company repurchased 0.8 million shares of its outstanding common stock for $8.3 million , representing an average cost of $10.22 per share. No common stock was repurchased during the three months ended June 30, 2018. As of June 30, 2018 , the Company had remaining authorization to repurchase up to $41.7 million of common stock under its stock repurchase program. Accumulated Other Comprehensive Income (Loss) —"Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands): As of June 30, 2018 December 31, 2017 Unrealized gains on available-for-sale securities $ 655 $ 1,335 Unrealized gains on cash flow hedges 1,311 707 Unrealized losses on cumulative translation adjustment (4,199 ) (4,524 ) Accumulated other comprehensive income (loss) $ (2,233 ) $ (2,482 ) |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans and Employee Benefits | Stock-Based Compensation Plans and Employee Benefits Stock-Based Compensation —The Company recorded stock-based compensation expense, including the expense related to performance incentive plans (see below), of $3.5 million and $12.6 million for the three and six months ended June 30, 2018 , respectively, and $3.9 million and $9.8 million for the three and six months ended June 30, 2017 , respectively, in "General and administrative" in the Company's consolidated statements of operations. Performance Incentive Plans —The Company's Performance Incentive Plan ("iPIP") is designed to provide, primarily to senior executives and select professionals engaged in the Company's investment activities, long-term compensation which has a direct relationship to the realized returns on investments included in the plan. The fair value of points is determined using a model that forecasts the Company's projected investment performance. iPIP is a liability-classified award, which will be remeasured each reporting period at fair value until the awards are settled. The following is a summary of the status of the Company’s iPIP points and changes during the six months ended June 30, 2018 and the year ended December 31, 2017. Six Months Ended June 30, 2018 Year Ended December 31, 2017 iPIP Investment Pool iPIP Investment Pool 2013-2014 2015-2016 2017-2018 2013-2014 2015-2016 2017-2018 Points at beginning of period 86.57 84.16 40.97 92.00 74.10 0 Granted 0.50 — 49.08 5.00 17.88 41.68 Forfeited (0.15 ) (0.89 ) (4.56 ) (10.43 ) (7.82 ) (0.71 ) Points at end of period 86.92 83.27 85.49 86.57 84.16 40.97 During the six months ended June 30, 2018 , the Company made initial distributions to participants in the 2013-2014 investment pool following a determination that, as of December 31, 2017, the Company had realized a return of all invested capital in the assets included in the 2013-2014 investment pool, together with a return based on leverage and a preferred return hurdle of 9.0% . After the amount distributable to participants was reduced based on the Company's total shareholder return in accordance with the provisions of the iPIP, iPIP participants received total distributions in the amount of $13.6 million as compensation, comprised of $6.8 million in cash and 595,869 shares of the Company's common stock, with a fair value of $6.8 million or $11.41 per share, which are fully-vested and issued under the 2009 LTIP (see below). After deducting statutory minimum tax withholdings, a total of 328,074 shares of the Company's common stock were issued. As of June 30, 2018 and December 31, 2017 , the Company had accrued compensation costs relating to iPIP of $34.3 million and $38.1 million , respectively, which are included in "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheets. Long-Term Incentive Plan —The Company's 2009 Long-Term Incentive Plan (the "2009 LTIP") is designed to provide incentive compensation for officers, key employees, directors and advisors of the Company. The 2009 LTIP provides for awards of stock options, shares of restricted stock, phantom shares, restricted stock units, dividend equivalent rights and other share-based performance awards. All awards under the 2009 LTIP are made at the discretion of the Company's Board of Directors or a committee of the Board of Directors. The Company's shareholders approved the 2009 LTIP in 2009 and approved the performance-based provisions of the 2009 LTIP, as amended, in 2014. As of June 30, 2018 , an aggregate of 2.7 million shares remain available for issuance pursuant to future awards under the Company's 2009 LTIP. Restricted Share Issuances —During the six months ended June 30, 2018 , the Company granted 213,609 shares of common stock to certain employees under the 2009 LTIP as part of annual incentive awards that included a mix of cash and equity awards. The shares are fully-vested and 135,503 shares were issued net of required, statutory minimum tax withholdings. The employees are restricted from selling these shares for up to 18 months from the date of grant. Restricted Stock Unit Activity —A summary of the Company’s stock-based compensation awards to certain employees in the form of long-term incentive awards for the six months ended June 30, 2018 and the year ended December 31, 2017, are as follows (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Nonvested at beginning of period 282 290 Granted 264 116 Vested (40 ) (75 ) Forfeited (49 ) (49 ) Nonvested at end of period 457 282 As of June 30, 2018 , there was $2.9 million of total unrecognized compensation cost related to all unvested restricted stock units that are expected to be recognized over a weighted average remaining vesting/service period of 2.0 years. Directors' Awards —During the six months ended June 30, 2018 , the Company awarded to non-employee Directors 67,631 restricted shares of common stock at a fair value of $10.65 at the time of grant. The restricted shares have a vesting term of one year. As of June 30, 2018 , a combined total of 236,996 CSEs and restricted shares of common stock granted to members of the Company's Board of Directors remained outstanding under the Company's Non-Employee Directors Deferral Plan, with an aggregate intrinsic value of $2.6 million . 401(k) Plan —The Company made contributions of $0.1 million and $0.8 million for the three and six months ended June 30, 2018 , respectively, and $0.1 million and $0.8 million for the three and six months ended June 30, 2017 , respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share ("EPS") calculations ($ in thousands, except for per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Income from continuing operations $ 3,611 $ 76,117 $ 21,589 $ 47,869 Income from sales of real estate 56,895 844 73,943 8,954 Net income attributable to noncontrolling interests (9,509 ) (5,710 ) (9,604 ) (4,610 ) Preferred dividends (8,124 ) (12,830 ) (16,248 ) (25,660 ) Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for basic earnings per common share $ 42,873 $ 58,421 $ 69,680 $ 26,553 Add: Effect of joint venture shares — 5 — 9 Add: Effect of Series J convertible perpetual preferred stock 2,250 2,250 4,500 4,500 Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for diluted earnings per common share $ 45,123 $ 60,676 $ 74,180 $ 31,062 For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Earnings allocable to common shares: Numerator for basic earnings per share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 42,873 $ 58,421 $ 69,680 $ 26,553 Income from discontinued operations — 173 — 4,939 Gain from discontinued operations — 123,418 — 123,418 Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 42,873 $ 177,467 $ 69,680 $ 150,365 Numerator for diluted earnings per share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 45,123 $ 60,676 $ 74,180 $ 31,062 Income from discontinued operations — 173 — 4,939 Gain from discontinued operations — 123,418 — 123,418 Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 45,123 $ 179,722 $ 74,180 $ 154,874 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 67,932 72,142 67,922 72,104 Add: Effect of assumed shares issued under treasury stock method for restricted stock units 127 120 125 119 Add: Effect of joint venture shares — 298 — 298 Add: Effect of series J convertible perpetual preferred stock 15,635 15,635 15,635 15,635 Weighted average common shares outstanding for diluted earnings per common share 83,694 88,195 83,682 88,156 Basic earnings per common share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 0.63 $ 0.81 $ 1.03 $ 0.37 Income from discontinued operations — — — 0.07 Gain from discontinued operations — 1.71 — 1.71 Income tax expense from discontinued operations — (0.06 ) — (0.06 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 0.63 $ 2.46 $ 1.03 $ 2.09 Diluted earnings per common share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 0.54 $ 0.69 $ 0.89 $ 0.35 Income from discontinued operations — — — 0.06 Gain from discontinued operations — 1.40 — 1.40 Income tax expense from discontinued operations — (0.05 ) — (0.05 ) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Net income attributable to iStar Inc. and allocable to common shareholders $ 0.54 $ 2.04 $ 0.89 $ 1.76 |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Values | Fair Values Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs to be used in valuation techniques to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Certain of the Company's assets and liabilities are recorded at fair value either on a recurring or non-recurring basis. Assets required to be marked-to-market and reported at fair value every reporting period are classified as being valued on a recurring basis. Assets not required to be recorded at fair value every period may be recorded at fair value if a specific provision or other impairment is recorded within the period to mark the carrying value of the asset to market as of the reporting date. Such assets are classified as being valued on a non-recurring basis. The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands): Fair Value Using Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) As of June 30, 2018 Recurring basis: Derivative assets (1) $ 8,120 $ — $ 8,120 $ — Derivative liabilities (1) 1,150 — 1,150 — Available-for-sale securities (1) 21,840 $ — $ — 21,840 Non-recurring basis: Impaired real estate (2) 5,632 — — 5,632 Impaired land and development (3) 8,873 — — 8,873 Debt security (4) 77,007 — — 77,007 As of December 31, 2017 Recurring basis: Available-for-sale securities (1) $ 22,842 $ — $ — $ 22,842 Non-recurring basis: Impaired real estate (5) 12,400 — — 12,400 Impaired real estate available and held for sale (6) 800 — — 800 Impaired land and development (7) 21,400 — — 21,400 ____________________________________________________________ (1) The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3. (2) The Company recorded an impairment on a net lease asset with a fair value of $5.6 million due to the exercise of a below-market lease renewal option related to a net lease asset. (3) The Company recorded an impairment on a land and development asset with a fair value of $8.9 million based on market comparable sales. (4) In connection with the resolution of a non-performing loan, the Company received a preferred equity position with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity position at its fair value of $77.0 million based on a discount rate of 7.375% . (5) The Company recorded an impairment on a real estate asset with a fair value of $12.4 million based on market comparable sales. (6) The Company recorded an impairment on a residential real estate asset available and held for sale based on market comparable sales. (7) The Company recorded an impairment on a land and development asset with a fair value of $21.4 million based on a discount rate of 6% and a 10 year holding period. The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the six months ended June 30, 2018 and 2017 ($ in thousands): 2018 2017 Beginning balance $ 22,842 $ 21,666 Repayments (46 ) (10 ) Unrealized gains (losses) recorded in other comprehensive income (956 ) 566 Ending balance $ 21,840 $ 22,222 Fair values of financial instruments— The Company's estimated fair values of its loans receivable and other lending investments and outstanding debt was $1.1 billion and $3.9 billion , respectively, as of June 30, 2018 and $1.3 billion and $3.7 billion , respectively, as of December 31, 2017 . The Company determined that the significant inputs used to value its loans receivable and other lending investments and debt obligations fall within Level 3 of the fair value hierarchy. The carrying value of other financial instruments including cash and cash equivalents, restricted cash, accrued interest receivable and accounts payable, approximate the fair values of the instruments. Cash and cash equivalents and restricted cash values are considered Level 1 on the fair value hierarchy. The fair value of other financial instruments, including derivative assets and liabilities, is included in the fair value hierarchy table above. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Real Estate Finance, Net Lease, Operating Properties and Land and Development. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans and real estate related securities. The Net Lease segment includes the Company's activities and operations related to the ownership of properties generally leased to single corporate tenants. The Operating Properties segment includes the Company's activities and operations related to its commercial and residential properties. The Land and Development segment includes the Company's activities related to its developable land portfolio. The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands): Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Three Months Ended June 30, 2018: Operating lease income $ — $ 29,310 $ 15,199 $ 100 $ — $ 44,609 Interest income 25,212 — — — — 25,212 Other income 3,133 698 13,351 1,313 2,328 20,823 Land development revenue — — — 80,927 — 80,927 Earnings (losses) from equity method investments — 2,694 (1,316 ) 1,023 (9,679 ) (7,278 ) Gain on consolidation of equity method investment — 67,877 — — — 67,877 Income from sales of real estate — 24,493 32,402 — — 56,895 Total revenue and other earnings 28,345 125,072 59,636 83,363 (7,351 ) 289,065 Real estate expense — (3,433 ) (23,818 ) (9,792 ) — (37,043 ) Land development cost of sales — — — (83,361 ) — (83,361 ) Other expense (290 ) — — — (3,426 ) (3,716 ) Allocated interest expense (10,648 ) (13,591 ) (4,578 ) (5,308 ) (9,047 ) (43,172 ) Allocated general and administrative (2) (3,852 ) (4,853 ) (1,975 ) (3,747 ) (5,298 ) (19,725 ) Segment profit (loss) (3) $ 13,555 $ 103,195 $ 29,265 $ (18,845 ) $ (25,122 ) $ 102,048 Other significant items: Provision for loan losses $ 18,892 $ — $ — $ — $ — $ 18,892 Impairment of assets — 4,342 446 1,300 — 6,088 Depreciation and amortization — 6,341 3,738 318 370 10,767 Capitalized expenditures — 720 4,623 42,603 — 47,946 Three Months Ended June 30, 2017: Operating lease income $ — $ 30,852 $ 15,940 $ 210 $ — $ 47,002 Interest income 28,645 — — — — 28,645 Other income 479 550 13,333 123,871 1,277 139,510 Land development revenue — — — 132,710 — 132,710 Earnings from equity method investments — 1,080 469 3,606 360 5,515 Income from discontinued operations — 173 — — — 173 Gain from discontinued operations — 123,418 — — — 123,418 Income from sales of real estate — — 844 — — 844 Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Total revenue and other earnings 29,124 156,073 30,586 260,397 1,637 477,817 Real estate expense — (4,064 ) (22,653 ) (7,967 ) — (34,684 ) Land development cost of sales — — — (122,466 ) — (122,466 ) Other expense (399 ) — — — (15,877 ) (16,276 ) Allocated interest expense (10,508 ) (13,669 ) (5,006 ) (7,122 ) (12,502 ) (48,807 ) Allocated general and administrative (2) (4,691 ) (5,921 ) (2,364 ) (5,004 ) (5,323 ) (23,303 ) Segment profit (loss) (3) $ 13,526 $ 132,419 $ 563 $ 117,838 $ (32,065 ) $ 232,281 Other significant items: Recovery of loan losses $ (600 ) $ — $ — $ — $ — $ (600 ) Impairment of assets — 219 — 10,065 — 10,284 Depreciation and amortization — 7,400 4,923 521 327 13,171 Capitalized expenditures — 917 8,355 30,286 — 39,558 Six Months Ended June 30, 2018 Operating lease income $ — $ 59,036 $ 31,016 $ 355 $ — $ 90,407 Interest income 51,909 — — — — 51,909 Other income 3,516 1,746 25,496 1,784 3,600 36,142 Land development revenue — — — 357,356 — 357,356 Earnings (losses) from equity method investments — 6,252 (2,591 ) 2,566 (10,173 ) (3,946 ) Gain on consolidation of equity method investment — 67,877 — — — 67,877 Income from sales of real estate — 24,907 49,036 — — 73,943 Total revenue and other earnings 55,425 159,818 102,957 362,061 (6,573 ) 673,688 Real estate expense — (7,411 ) (45,443 ) (20,370 ) — (73,224 ) Land development cost of sales — — — (306,768 ) — (306,768 ) Other expense (690 ) — — — (4,192 ) (4,882 ) Allocated interest expense (22,413 ) (27,792 ) (10,106 ) (11,781 ) (16,261 ) (88,353 ) Allocated general and administrative (2) (7,821 ) (9,439 ) (4,018 ) (7,552 ) (10,618 ) (39,448 ) Segment profit (loss) (3) $ 24,501 $ 115,176 $ 43,390 $ 15,590 $ (37,644 ) $ 161,013 Other significant non-cash items: Provision for loan losses $ 18,037 $ — $ — $ — $ — $ 18,037 Impairment of assets — 4,342 4,546 1,300 — 10,188 Depreciation and amortization — 12,652 7,664 832 730 21,878 Capitalized expenditures — 1,198 12,324 74,050 — 87,572 Six Months Ended June 30, 2017: Operating lease income $ — $ 62,104 $ 31,929 $ 316 $ — $ 94,349 Interest income 57,703 — — — — 57,703 Other income 556 1,056 23,688 124,256 1,818 151,374 Land development revenue — — — 152,760 — 152,760 Earnings (losses) from equity method investments — 2,062 1,101 7,448 606 11,217 Income from discontinued operations — 4,939 — — — 4,939 Gain from discontinued operations — 123,418 — — — 123,418 Income from sales of real estate — 6,212 2,742 — — 8,954 Total revenue and other earnings 58,259 199,791 59,460 284,780 2,424 604,714 Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Real estate expense — (8,640 ) (44,171 ) (17,463 ) — (70,274 ) Land development cost of sales — — — (138,376 ) — (138,376 ) Other expense (1,004 ) — — — (17,141 ) (18,145 ) Allocated interest expense (22,396 ) (29,404 ) (10,612 ) (15,240 ) (22,300 ) (99,952 ) Allocated general and administrative (2) (8,287 ) (10,563 ) (4,119 ) (8,930 ) (10,697 ) (42,596 ) Segment profit (loss) (3) $ 26,572 $ 151,184 $ 558 $ 104,771 $ (47,714 ) $ 235,371 Other significant non-cash items: Recovery of loan losses $ (5,528 ) $ — $ — $ — $ — $ (5,528 ) Impairment of assets — 219 4,413 10,064 — 14,696 Depreciation and amortization — 15,039 8,962 791 659 25,451 Capitalized expenditures — 1,687 16,566 56,879 — 75,132 As of June 30, 2018 Real estate Real estate, net $ — $ 1,532,589 $ 382,410 $ — $ — $ 1,914,999 Real estate available and held for sale — — 37,597 — — 37,597 Total real estate — 1,532,589 420,007 — — 1,952,596 Land and development, net — — — 641,627 — 641,627 Loans receivable and other lending investments, net 1,052,872 — — — — 1,052,872 Other investments — 147,512 62,024 76,693 6,788 293,017 Total portfolio assets $ 1,052,872 $ 1,680,101 $ 482,031 $ 718,320 $ 6,788 3,940,112 Cash and other assets 1,418,055 Total assets $ 5,358,167 As of December 31, 2017 Real estate Real estate, net $ — $ 815,783 $ 466,248 $ — $ — $ 1,282,031 Real estate available and held for sale — — 68,588 — — 68,588 Total real estate — 815,783 534,836 — — 1,350,619 Land and development, net — — — 860,311 — 860,311 Loans receivable and other lending investments, net 1,300,655 — — — — 1,300,655 Other investments — 205,007 38,761 63,855 13,618 321,241 Total portfolio assets $ 1,300,655 $ 1,020,790 $ 573,597 $ 924,166 $ 13,618 3,832,826 Cash and other assets 898,252 Total assets $ 4,731,078 _______________________________________________________________________________ (1) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above. (2) General and administrative excludes stock-based compensation expense of $3.5 million and $12.6 million for the three and six months ended June 30, 2018 , respectively, and $3.9 million and $9.8 million for the three and six months ended June 30, 2017 , respectively. (3) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Segment profit $ 102,048 $ 232,281 $ 161,013 $ 235,371 Add: (Provision for) recovery of loan losses (18,892 ) 600 (18,037 ) 5,528 Less: Impairment of assets (6,088 ) (10,284 ) (10,188 ) (14,696 ) Less: Stock-based compensation expense (3,503 ) (3,915 ) (12,593 ) (9,796 ) Less: Depreciation and amortization (10,767 ) (13,171 ) (21,878 ) (25,451 ) Less: Income tax expense (128 ) (1,644 ) (249 ) (2,251 ) Less: Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Less: Loss on early extinguishment of debt, net (2,164 ) (3,315 ) (2,536 ) (3,525 ) Net income $ 60,506 $ 196,007 $ 95,532 $ 180,635 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | The following paragraphs describe the impact on the Company's consolidated financial statements from the adoption of Accounting Standards Updates ("ASUs") on January 1, 2018. ASU 2014-09 — ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Certain contracts with customers, including lease contracts and financial instruments and other contractual rights, are not within the scope of the new guidance. The Company's revenue within the scope of the guidance is primarily ancillary income related to its operating properties. The Company adopted ASU 2014-09 using the modified retrospective approach and the adoption did not have a material impact on the Company's consolidated financial statements. ASU 2016-01 and ASU 2018-03 — ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), addressed certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, provided technical corrections and improvements to ASU 2016-01. ASU 2016-01 requires entities to measure equity investments not accounted for under the equity method at fair value and recognize changes in fair value in net income. For equity investments without readily determinable fair values, entities may elect a measurement alternative that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Upon adoption, entities must record a cumulative-effect adjustment to the balance sheet as of the beginning of the first reporting period in which the standard is adopted. ASU 2016-01 also eliminated the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. The adoption of ASU 2016-01 and ASU 2018-03 did not have a material impact on the Company's consolidated financial statements. ASU 2016-15 — ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"), was issued to reduce diversity in practice in how certain cash receipts and cash payments, including debt prepayment or debt extinguishment costs, distributions from equity method investees, and other separately identifiable cash flows, are presented and classified in the statement of cash flows. The adoption of ASU 2016-15 was retrospective and resulted in an increase to cash flows provided by operating activities of $9.3 million and a decrease to cash flows provided by financing activities of $9.3 million for the six months ended June 30, 2017 , primarily resulting from the reclassification of cash payments made related to the extinguishment of debt. ASU 2016-18 — ASU 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18"), requires that restricted cash be included with cash and cash equivalents when reconciling beginning and ending cash and cash equivalents on the statement of cash flows and requires disclosure of what is included in restricted cash. The adoption of ASU 2016-18 did not have a material impact on the Company's consolidated financial statements. The adoption of ASU 2016-18 was retrospective and resulted in a decrease to cash flows provided by operating activities of $0.7 million and a decrease to cash flows provided by investing activities of $1.8 million for the six months ended June 30, 2017 . ASU 2017-12 — ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 expands and refines hedge accounting for both nonfinancial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted ASU 2017-12 on January 1, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements — In June 2016 , the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments held by a reporting entity. This amendment replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The Company currently records a general reserve that covers performing loans and reserves for loan losses are recorded when: (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio; and (ii) the amount of the loss can be reasonably estimated. The formula-based general reserve is derived from estimated principal default probabilities and loss severities applied to groups of loans based upon risk ratings assigned to loans with similar risk characteristics during our quarterly loan portfolio assessment. The Company estimates loss rates based on historical realized losses experienced within its portfolio and take into account current economic conditions affecting the commercial real estate market when establishing appropriate time frames to evaluate loss experience. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Management does not believe the guidance will have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"), which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. For operating leases, a lessee will be required to do the following: (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial position; (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis; and (iii) classify all cash payments within operating activities in the statement of cash flows. In July 2018, the FASB issued ASU 2018-11, Leases (“ASU 2018-11”), to address two requirements of ASU 2016-02. ASU 2018-11 allows entities to recognize a cumulative-effect adjustment from the application of ASU 2016-02 to the opening balance of retained earnings in the period of adoption. In addition, ASU 2018-11 provides lessors with a practical expedient to not separate non-lease components from the associated lease component if certain conditions are met. For operating lease arrangements for which the Company is the lessee, primarily the lease of office space, the Company expects the impact of ASU 2016-02 to be the recognition of a right-of-use asset and lease liability on its consolidated balance sheets. The accounting applied by the Company as a lessor will be largely unchanged from that applied under previous GAAP. However, in certain instances, a new long-term lease of land subsequent to adoption could be classified as a sales-type lease, which could result in the Company derecognizing the underlying asset and recording a profit or loss on sale and the net investment in the lease. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. Management is evaluating the impact of the guidance on the Company's consolidated financial statements. ASU 2017-01 — The adoption of ASU 2017-01, Business Combinations: Clarifying the Definition of a Business ("ASU 2017-01"), did not have a material impact on the Company's consolidated financial statements. Under ASU 2017-01, certain transactions previously accounted for as business combinations under the former accounting guidance will be accounted for as asset acquisitions under ASU 2017-01. As a result, the Company expects more transaction costs to be capitalized relating to real estate acquisitions as a result of ASU 2017-01. ASU 2017-05 — ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets ("ASU 2017-05"), simplifies GAAP by eliminating several accounting differences between transactions involving assets and transactions involving businesses. The amendments in ASU 2017-05 require an entity to initially measure a retained noncontrolling interest in a nonfinancial asset at fair value consistent with how a retained noncontrolling interest in a business is measured. Also, if an entity transfers ownership interests in a consolidated subsidiary that is within the scope of ASC 610-20 and continues to have a controlling financial interest in that subsidiary, ASU 2017-05 requires the entity to account for the transaction as an equity transaction, which is consistent with how changes in ownership interests in a consolidated subsidiary that is a business are recorded when a parent retains a controlling financial interest in the business. The Company adopted ASU 2017-05 using the modified retrospective approach which was applied to all contracts. On January 1, 2018, the Company recorded a step-up in basis to fair value of its retained noncontrolling interest relating to the sale of its ground lease business (refer to Note 4) and other transactions where the Company sold or contributed real estate to a venture and previously recognized partial gains. Prior to the adoption of ASU 2017-05, the Company was required to recognize gains on only the portion of its interest transferred to third parties and was precluded from recognizing a gain on its retained noncontrolling interest which was carried at the Company’s historical cost basis. |
Basis of Presentation and Pri28
Basis of Presentation and Principles of Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of assets and liabilities of consolidated Variable Interest Entities | The following table presents the assets and liabilities of the Company's consolidated VIEs as of June 30, 2018 and December 31, 2017 ($ in thousands): As of June 30, 2018 December 31, ASSETS Real estate Real estate, at cost $ 817,979 $ 47,073 Less: accumulated depreciation (4,593 ) (2,732 ) Real estate, net 813,386 44,341 Land and development, net 242,213 212,408 Other investments 88 — Cash and cash equivalents 12,918 10,704 Accrued interest and operating lease income receivable, net 557 230 Deferred expenses and other assets, net 179,129 29,929 Total assets $ 1,248,291 $ 297,612 LIABILITIES Accounts payable, accrued expenses and other liabilities $ 99,784 $ 38,616 Debt obligations, net 464,706 — Total liabilities 564,490 38,616 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of the cash and cash equivalents and restricted cash reported in the Company's consolidated balance sheets that total to the same amount as reported in the consolidated statements of cash flows (in thousands): June 30, 2018 December 31, 2017 June 30, 2017 December 31, 2016 Cash and cash equivalents $ 1,039,591 $ 657,688 $ 954,279 $ 328,744 Restricted cash included in deferred expenses and other assets, net (1) 27,399 20,045 23,380 25,883 Total cash, cash equivalents and restricted cash reported in the consolidated statements of cash flows $ 1,066,990 $ 677,733 $ 977,659 $ 354,627 _______________________________________________________________________________ (1) Restricted cash represents amounts required to be maintained under certain of the Company's debt obligations, loans, leasing, land development, sale and derivative transactions. |
Schedule of impact of new accounting standard | The adoption of ASU 2017-05 had the following impact on the Company's consolidated financial statements (in thousands): Impact from ASU 2017-05 on January 1, 2018 December 31, 2017 January 1, 2018 Other investments $ 321,241 $ 75,869 $ 397,110 Total assets 4,731,078 75,869 4,806,947 Retained earnings (deficit) $ (2,470,564 ) $ 75,869 $ (2,394,695 ) Total equity 914,249 75,869 990,118 |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of real estate assets | The Company's real estate assets were comprised of the following ($ in thousands): Net Lease (1) Operating Properties Total As of June 30, 2018 Land, at cost $ 335,926 $ 181,973 $ 517,899 Buildings and improvements, at cost 1,495,393 242,245 1,737,638 Less: accumulated depreciation (298,730 ) (41,808 ) (340,538 ) Real estate, net 1,532,589 382,410 1,914,999 Real estate available and held for sale (2) — 37,597 37,597 Total real estate $ 1,532,589 $ 420,007 $ 1,952,596 As of December 31, 2017 Land, at cost $ 219,092 $ 203,278 $ 422,370 Buildings and improvements, at cost 888,959 318,107 1,207,066 Less: accumulated depreciation (292,268 ) (55,137 ) (347,405 ) Real estate, net 815,783 466,248 1,282,031 Real estate available and held for sale (2) — 68,588 68,588 Total real estate $ 815,783 $ 534,836 $ 1,350,619 _______________________________________________________________________________ (1) On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $743.6 million to "Real estate, net" on the Company's consolidated balance sheet. (2) As of June 30, 2018 and December 31, 2017 , the Company had $36.7 million and $48.5 million , respectively, of residential condominiums available for sale in its operating properties portfolio. |
Schedule of income (loss) from discontinued operations | The transactions described above involving the Company's Ground Lease business qualified for discontinued operations and the following table summarizes income from discontinued operations for the three and six months ended June 30, 2017 ($ in thousands) (1)(2) : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Revenues $ 678 $ 5,922 Expenses (505 ) (1,491 ) Income from sales of real estate — 508 Income from discontinued operations $ 173 $ 4,939 _______________________________________________________________________________ (1) The transactions closed on April 14, 2017. Revenues primarily consisted of operating lease income and expenses primarily consisted of depreciation and amortization and real estate expense. (2) For the six months ended June 30, 2017, cash flows provided by operating activities and cash flows used in investing activities from discontinued operations was $5.7 million and $0.5 million , respectively. |
Schedule of other dispositions | The following table presents the net proceeds and income recognized for properties sold, by property type ($ in millions): Six Months Ended June 30, 2018 2017 Operating Properties Proceeds (1) $ 196.2 $ 17.6 Income from sales of real estate (1) 49.0 2.7 Net Lease Proceeds (2) $ 38.4 $ 19.5 Income from sales of real estate (2) 24.9 6.2 Total Proceeds $ 234.6 $ 37.1 Income from sales of real estate 73.9 8.9 _______________________________________________________________________________ (1) During the six months ended June 30, 2018, the Company sold four operating properties and recognized $49.0 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations, of which $9.8 million was attributable to a noncontrolling interest at one of the properties. (2) During the six months ended June 30, 2018, the Company sold three net lease assets and recognized $24.9 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations. |
Land and Development (Tables)
Land and Development (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Land and development [Abstract] | |
Schedule of land and development assets | The Company's land and development assets were comprised of the following ($ in thousands): As of June 30, December 31, 2018 2017 Land and land development, at cost (1) $ 649,783 $ 868,692 Less: accumulated depreciation (8,156 ) (8,381 ) Total land and development, net $ 641,627 $ 860,311 _______________________________________________________________________________ (1) During the six months ended June 30, 2018 , the Company funded capital expenditures on land and development assets of $61.6 million . |
Loans Receivable and Other Le32
Loans Receivable and Other Lending Investments, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of the Company's loans and other lending investments by class | The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands): As of Type of Investment June 30, December 31, Senior mortgages $ 849,192 $ 791,152 Corporate/Partnership loans (1) 129,988 488,921 Subordinate mortgages 9,822 9,495 Total gross carrying value of loans 989,002 1,289,568 Reserves for loan losses (54,495 ) (78,489 ) Total loans receivable, net 934,507 1,211,079 Other lending investments—securities 118,365 89,576 Total loans receivable and other lending investments, net $ 1,052,872 $ 1,300,655 _______________________________________________________________________________ (1) In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million . Refer to "Impaired Loans" section below. |
Schedule of changes in the Company's reserve for loan losses | Changes in the Company's reserve for loan losses were as follows ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Reserve for loan losses at beginning of period $ 69,466 $ 79,389 $ 78,489 $ 85,545 Provision for (recovery of) loan losses 18,892 (600 ) 18,037 (5,528 ) Charge-offs (33,863 ) — (42,031 ) (1,228 ) Reserve for loan losses at end of period $ 54,495 $ 78,789 $ 54,495 $ 78,789 |
Schedule of recorded investment in loans and associated reserve for loan losses | The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands): Individually Evaluated for Impairment (1) Collectively Evaluated for Impairment (2) Total As of June 30, 2018 Loans $ 67,068 $ 927,074 $ 994,142 Less: Reserve for loan losses (40,395 ) (14,100 ) (54,495 ) Total (3) $ 26,673 $ 912,974 $ 939,647 As of December 31, 2017 Loans $ 237,877 $ 1,056,944 $ 1,294,821 Less: Reserve for loan losses (60,989 ) (17,500 ) (78,489 ) Total (3) $ 176,888 $ 1,039,444 $ 1,216,332 _______________________________________________________________________________ (1) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.5 million and $0.7 million as of June 30, 2018 and December 31, 2017 , respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status; therefore, the unamortized amounts associated with these loans are not currently being amortized into income. (2) The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $3.7 million and net premiums of $6.2 million as of June 30, 2018 and December 31, 2017 , respectively. (3) The Company's recorded investment in loans as of June 30, 2018 and December 31, 2017 , including accrued interest of $5.1 million and $5.3 million , respectively, is included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. As of June 30, 2018 and December 31, 2017 , the total amounts exclude $118.4 million and $89.6 million , respectively, of securities that are evaluated for impairment under ASC 320. |
Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating | The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands): As of June 30, 2018 As of December 31, 2017 Performing Loans Weighted Average Risk Ratings Performing Loans Weighted Average Risk Ratings Senior mortgages $ 786,399 2.78 $ 713,057 2.72 Corporate/Partnership loans 130,823 2.85 334,364 2.85 Subordinate mortgages 9,852 3.00 9,523 3.00 Total $ 927,074 2.79 $ 1,056,944 2.77 |
Schedule of recorded investment in loans, aged by payment status and presented by class | The Company's recorded investment in loans, aged by payment status and presented by class, was as follows ($ in thousands): Current Less Than and Equal to 90 Days Greater Than 90 Days (1) Total Past Due Total As of June 30, 2018 Senior mortgages $ 792,399 $ — $ 61,068 $ 61,068 $ 853,467 Corporate/Partnership loans 130,823 — — — 130,823 Subordinate mortgages 9,852 — — — 9,852 Total $ 933,074 $ — $ 61,068 $ 61,068 $ 994,142 As of December 31, 2017 Senior mortgages $ 719,057 $ — $ 75,343 $ 75,343 $ 794,400 Corporate/Partnership loans 334,364 — 156,534 156,534 490,898 Subordinate mortgages 9,523 — — — 9,523 Total $ 1,062,944 $ — $ 231,877 $ 231,877 $ 1,294,821 _______________________________________________________________________________ (1) As of June 30, 2018 , the Company had two loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 3.0 to 9.0 years outstanding. As of December 31, 2017, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 1.0 to 9.0 years outstanding. |
Schedule of recorded investment in impaired loans, presented by class | The Company's recorded investment in impaired loans, presented by class, was as follows ($ in thousands) (1) : As of June 30, 2018 As of December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With an allowance recorded: Senior mortgages $ 67,068 $ 67,451 $ (40,395 ) $ 81,343 $ 81,431 $ (48,518 ) Corporate/Partnership loans — — — 156,534 145,849 (12,471 ) Total $ 67,068 $ 67,451 $ (40,395 ) $ 237,877 $ 227,280 $ (60,989 ) ____________________________________________________________ (1) All of the Company's non-accrual loans are considered impaired and included in the table above. |
Schedule of average recorded investment in impaired loans and interest income recognized, presented by class | The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average Interest Average Interest Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Subordinate mortgages $ — $ — $ 11,023 $ — $ — $ 92 $ 10,970 $ — Subtotal — — 11,023 — — 92 10,970 — With an allowance recorded: Senior mortgages 67,252 — 82,368 — 71,949 — 83,556 — Corporate/Partnership loans 78,338 — 156,839 — 104,403 — 156,941 — Subtotal 145,590 — 239,207 — 176,352 — 240,497 — Total: Senior mortgages 67,252 — 82,368 — 71,949 — 83,556 — Corporate/Partnership loans 78,338 — 156,839 — 104,403 — 156,941 — Subordinate mortgages — — 11,023 — — 92 10,970 — Total $ 145,590 $ — $ 250,230 $ — $ 176,352 $ 92 $ 251,467 $ — |
Schedule of other lending investments - securities | Other lending investments—securities include the following ($ in thousands): Face Value Amortized Cost Basis Net Unrealized Gain Estimated Fair Value Net Carrying Value As of June 30, 2018 Available-for-Sale Securities Municipal debt securities $ 21,185 $ 21,185 $ 655 $ 21,840 $ 21,840 Held-to-Maturity Securities Debt securities 119,538 96,525 378 96,903 96,525 Total $ 140,723 $ 117,710 $ 1,033 $ 118,743 $ 118,365 As of December 31, 2017 Available-for-Sale Securities Municipal debt securities $ 21,230 $ 21,230 $ 1,612 $ 22,842 $ 22,842 Held-to-Maturity Securities Debt securities 66,618 66,734 1,581 68,315 66,734 Total $ 87,848 $ 87,964 $ 3,193 $ 91,157 $ 89,576 |
Schedule of contractual maturities of securities | As of June 30, 2018 , the contractual maturities of the Company's securities were as follows ($ in thousands): Held-to-Maturity Securities Available-for-Sale Securities Amortized Cost Basis Estimated Fair Value Amortized Cost Basis Estimated Fair Value Maturities Within one year $ 19,518 $ 19,896 $ — $ — After one year through 5 years 77,007 77,007 — — After 5 years through 10 years — — — — After 10 years — — 21,185 21,840 Total $ 96,525 $ 96,903 $ 21,185 $ 21,840 |
Other Investments (Tables)
Other Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Schedule of other investments and proportionate share of earnings from equity method investments | The Company's other investments and its proportionate share of earnings from equity method investments were as follows ($ in thousands): Equity in Earnings (Losses) Carrying Value as of For the Three Months Ended June 30, For the Six Months June 30, 2018 December 31, 2017 2018 2017 2018 2017 Real estate equity investments iStar Net Lease I LLC ("Net Lease Venture") (1) $ — $ 121,139 $ 2,016 $ 1,032 $ 4,100 $ 2,013 Safety, Income & Growth Inc. ("SAFE") (2) 147,512 83,868 680 48 2,152 48 Other real estate equity investments (2) 138,716 102,616 (295 ) 4,075 (25 ) 8,549 Subtotal 286,228 307,623 2,401 5,155 6,227 10,610 Other strategic investments (3) 6,789 13,618 (9,679 ) 360 (10,173 ) 607 Total $ 293,017 $ 321,241 $ (7,278 ) $ 5,515 $ (3,946 ) $ 11,217 ____________________________________________________________ (1) The Company consolidated the assets and liabilities of the Net Lease Venture on June 30, 2018 (refer to Net Lease Venture below). (2) On January 1, 2018, the Company recorded a step-up in basis to fair value of its retained noncontrolling interest relating to the sale of its Ground Lease business (refer to Note 4) and other transactions where the Company sold or contributed real estate to a venture and previously recognized partial gains. Prior to the adoption of ASU 2017-05 (refer to Note 3), the Company was required to recognize gains on only the portion of its interest transferred to third parties and was precluded from recognizing a gain on its retained noncontrolling interest, which was carried at the Company’s historical cost basis. (3) For the three and six months ended June 30, 2018, equity in earnings (losses) includes a $10.0 million impairment on a foreign equity method investment due to local market conditions. |
Other Assets and Other Liabil34
Other Assets and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Assets and Other Liabilities [Abstract] | |
Schedule of deferred expenses and other assets, net | Deferred expenses and other assets, net, consist of the following items ($ in thousands): As of June 30, 2018 December 31, 2017 Intangible assets, net (1) $ 162,014 $ 27,124 Other receivables (2) 47,355 56,369 Other assets (3) 29,952 23,081 Restricted cash 27,399 20,045 Leasing costs, net (4) 7,141 9,050 Corporate furniture, fixtures and equipment, net (5) 4,362 4,652 Deferred financing fees, net 1,167 1,409 Deferred expenses and other assets, net $ 279,390 $ 141,730 _______________________________________________________________________________ (1) Intangible assets, net includes above market and in-place lease assets and lease incentives related to the acquisition of real estate assets. Accumulated amortization on intangible assets, net was $30.9 million and $34.9 million as of June 30, 2018 and December 31, 2017 , respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.4 million and $0.8 million for the three and six months ended June 30, 2018 , respectively. The amortization of above market leases and lease incentive assets decreased operating lease income in the Company's consolidated statements of operations by $0.8 million and $1.6 million for the three and six months ended June 30, 2017 , respectively. These intangible lease assets are amortized over the remaining term of the lease. The amortization expense for in-place leases was $0.4 million and $0.7 million for the three and six months ended June 30, 2018 , respectively. The amortization expense for in-place leases was $0.7 million and $1.2 million for the three and six months ended June 30, 2017 , respectively. These amounts are included in "Depreciation and amortization" in the Company's consolidated statements of operations. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $135.3 million of intangible assets to "Deferred expenses and other assets, net" on the Company's consolidated balance sheet. (2) As of June 30, 2018 and December 31, 2017 , includes $26.5 million and $26.0 million , respectively, of reimbursements receivable related to the construction and development of an operating property. (3) Other assets primarily includes prepaid expenses and deposits for certain real estate assets. (4) Accumulated amortization of leasing costs was $3.9 million and $4.7 million as of June 30, 2018 and December 31, 2017 , respectively. (5) Accumulated depreciation on corporate furniture, fixtures and equipment was $11.2 million and $10.5 million as of June 30, 2018 and December 31, 2017 , respectively. |
Schedule of accounts payable, accrued expenses and other liabilities | Accounts payable, accrued expenses and other liabilities consist of the following items ($ in thousands): As of June 30, 2018 December 31, 2017 Accrued expenses (1) $ 87,734 $ 101,035 Other liabilities (2) 69,368 79,015 Accrued interest payable 50,359 49,933 Intangible liabilities, net (3) 42,033 8,021 Accounts payable, accrued expenses and other liabilities $ 249,494 $ 238,004 _______________________________________________________________________________ (1) As of June 30, 2018 and December 31, 2017 , accrued expenses includes $2.3 million and $2.5 million , respectively, associated with "Real estate available and held for sale" on the Company's consolidated balance sheets. (2) As of June 30, 2018 and December 31, 2017 , other liabilities includes $18.5 million and $29.2 million , respectively, related to profit sharing arrangements with developers for certain properties sold. As of June 30, 2018 and December 31, 2017 , includes $0.7 million and $1.6 million , respectively, associated with "Real estate available and held for sale" on the Company's consolidated balance sheets. As of June 30, 2018 and December 31, 2017 , other liabilities also includes $4.3 million and $6.2 million , respectively, related to tax increment financing bonds which were issued by government entities to fund development within two of the Company's land projects. The amount represents tax assessments associated with each project, which will decrease as the Company sells units. (3) Intangible liabilities, net includes below market lease liabilities related to the acquisition of real estate assets. Accumulated amortization on below market lease liabilities was $5.9 million and $7.8 million as of June 30, 2018 and December 31, 2017 , respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.1 million and $0.3 million for the three and six months ended June 30, 2018 , respectively. The amortization of below market leases increased operating lease income in the Company's consolidated statements of operations by $0.8 million and $1.0 million for the three and six months ended June 30, 2017 , respectively. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $34.3 million of intangible liabilities to "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheet. |
Loan Participations Payable, 35
Loan Participations Payable, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loan Participations Payable [Abstract] | |
Schedule of loan participations payable | The Company's loan participations payable, net were as follows ($ in thousands): Carrying Value as of June 30, 2018 December 31, 2017 Loan participations payable (1) $ 14,938 $ 102,737 Debt discounts and deferred financing costs, net (229 ) (312 ) Total loan participations payable, net $ 14,709 $ 102,425 _______________________________________________________________________________ (1) One loan participation payable with a carrying value of $93.8 million and a corresponding loan receivable balance of $93.6 million was fully repaid during the six months ended June 30, 2018. As of June 30, 2018 , the Company had one loan participation payable with an interest rate of 6.6% . As of December 31, 2017, the Company had two loan participations payable with a weighted average interest rate of 6.5% . |
Debt Obligations, net (Tables)
Debt Obligations, net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The Company's debt obligations were as follows ($ in thousands): Carrying Value as of Stated Scheduled June 30, 2018 December 31, 2017 Secured credit facilities and mortgages: 2015 $325 million Revolving Credit Facility $ — $ 325,000 LIBOR + 2.50% (1) September 2020 2016 Senior Term Loan 650,000 399,000 LIBOR + 2.75% (2) June 2023 Mortgages collateralized by net lease assets (3) 670,872 208,491 3.62% - 7.26% (4) Total secured credit facilities and mortgages 1,320,872 932,491 Unsecured notes: 5.00% senior notes (5) 770,000 770,000 5.00 % July 2019 4.625% senior notes (6) 400,000 400,000 4.625 % September 2020 6.50% senior notes (7) 275,000 275,000 6.50 % July 2021 6.00% senior notes (8) 375,000 375,000 6.00 % April 2022 5.25% senior notes (9) 400,000 400,000 5.25 % September 2022 3.125% senior convertible notes (10) 287,500 287,500 3.125 % September 2022 Total unsecured notes 2,507,500 2,507,500 Other debt obligations: Trust preferred securities 100,000 100,000 LIBOR + 1.50% October 2035 Total debt obligations 3,928,372 3,539,991 Debt discounts and deferred financing costs, net (58,796 ) (63,591 ) Total debt obligations, net (11) $ 3,869,576 $ 3,476,400 _______________________________________________________________________________ (1) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.25% to 1.75% ; or (ii) LIBOR subject to a margin ranging from 2.25% to 2.75% . At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2021. (2) The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin of 1.75% ; or (ii) LIBOR subject to a margin of 2.75% . (3) On June 30, 2018, the Company consolidated the Net Lease Venture and recorded $464.7 million to "Debt obligations, net" on the Company's consolidated balance sheet. (4) As of June 30, 2018 , the weighted average interest rate of these loans is 4.6% , inclusive of the effect interest rate swaps. (5) The Company can prepay these senior notes without penalty. In July 2018, the Company redeemed $273.0 million of the 5.00% senior notes. (6) The Company can prepay these senior notes without penalty beginning June 15, 2020. (7) The Company can prepay these senior notes without penalty beginning July 1, 2020. (8) The Company can prepay these senior notes without penalty beginning April 1, 2021. (9) The Company can prepay these senior notes without penalty beginning September 15, 2021. (10) The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at a conversion rate of 64.36 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $15.54 per share, at any time prior to the close of business on the business day immediately preceding September 15, 2022. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. As such, at issuance in September 2017, the Company valued the debt component at $221.8 million , net of fees, and the equity component of the conversion feature at $22.5 million , net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the debt component at $34.0 million , net of fees, and the equity component of the conversion feature at $3.4 million , net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of June 30, 2018 , the carrying value of the 3.125% Convertible Notes was $259.6 million , net of fees, and the unamortized discount of the 3.125% Convertible Notes was $22.9 million , net of fees. During the three and six months ended June 30, 2018 , the Company recognized $2.2 million and $4.5 million , respectively, of contractual interest and $1.2 million and $2.3 million , respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2% . (11) The Company capitalized interest relating to development activities of $2.1 million and $4.5 million during the three and six months ended June 30, 2018 , respectively, and $2.0 million and $4.0 million during the three and six months ended June 30, 2017 , respectively. |
Schedule of future scheduled maturities of outstanding debt obligations | As of June 30, 2018 , future scheduled maturities of outstanding debt obligations are as follows ($ in thousands): Unsecured Debt (1) Secured Debt Total 2018 (remaining six months) $ — $ 90,186 $ 90,186 2019 770,000 1,054 771,054 2020 400,000 — 400,000 2021 275,000 269,647 544,647 2022 1,062,500 57,992 1,120,492 Thereafter 100,000 901,993 1,001,993 Total principal maturities 2,607,500 1,320,872 3,928,372 Unamortized discounts and deferred financing costs, net (48,784 ) (10,012 ) (58,796 ) Total debt obligations, net $ 2,558,716 $ 1,310,860 $ 3,869,576 _______________________________________________________________________________ (1) In July 2018, the Company redeemed $273.0 million of senior notes. |
Schedule of carrying value of encumbered assets by asset type | The carrying value of the Company's assets that are directly pledged or are held by subsidiaries whose equity is pledged as collateral to secure the Company's obligations under its secured debt facilities are as follows, by asset type ($ in thousands): As of June 30, 2018 December 31, 2017 Collateral Assets (1) Non-Collateral Assets Collateral Assets (1) Non-Collateral Assets Real estate, net $ 1,583,330 $ 331,669 $ 795,321 $ 486,710 Real estate available and held for sale — 37,597 20,069 48,519 Land and development, net 10,100 631,527 25,100 835,211 Loans receivable and other lending investments, net (2)(3) 523,425 528,812 194,529 1,021,340 Other investments — 293,017 — 321,241 Cash and other assets — 1,418,055 — 898,252 Total $ 2,116,855 $ 3,240,677 $ 1,035,019 $ 3,611,273 _______________________________________________________________________________ (1) The 2016 Senior Term Loan and the 2015 Revolving Credit Facility are secured only by pledges of equity of certain of the Company's subsidiaries and not by pledges of the assets held by such subsidiaries. Such subsidiaries are subject to contractual restrictions under the terms of such credit facilities, including restrictions on incurring new debt (subject to certain exceptions). As of June 30, 2018, Collateral Assets includes $423.6 million carrying value of assets held by entities pledged as collateral for the $325.0 million 2015 Revolving Credit Facility that is fully undrawn as of June 30, 2018. (2) As of June 30, 2018 and December 31, 2017 , the amounts presented exclude general reserves for loan losses of $14.1 million and $17.5 million , respectively. (3) As of June 30, 2018 and December 31, 2017 , the amounts presented exclude loan participations of $14.7 million and $102.3 million , respectively. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of unfunded commitments | As of June 30, 2018 , the maximum amount of fundings the Company may be required to make under each category, assuming all performance hurdles and milestones are met under the Performance-Based Commitments and that 100% of its capital committed to Strategic Investments is drawn down, are as follows ($ in thousands): Loans and Other Lending Investments (1) Real Estate Other Investments Total Performance-Based Commitments $ 505,345 $ 9,774 $ 15,024 $ 530,143 Strategic Investments — — 9,322 9,322 Total $ 505,345 $ 9,774 $ 24,346 $ 539,465 _______________________________________________________________________________ (1) Excludes $35.1 million of commitments on loan participations sold that are not the obligation of the Company. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative financial instruments on consolidated balance sheet | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets ($ in thousands) (1) : Derivative Assets as of Derivative Liabilities as of June 30, 2018 June 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives Designated in Hedging Relationships Interest rate swaps Other assets $ 8,120 Other liabilities $ (1,150 ) Total $ 8,120 $ (1,150 ) _________________________________________________________ (1) The Company did not directly own any derivative financial instruments as of December 31, 2017. On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7), including all derivative financial instruments of the venture. Over the next 12 months, the Company expects that $0.4 million related to cash flow hedges will be reclassified from "Accumulated other comprehensive income (loss)" as a reduction to interest expense. As of June 30, 2018, the Company would not have been required to post any additional collateral to settle these contracts had the Company been declared in default on its derivative obligations. |
Schedule of derivative financial instruments on consolidated statements of operations and comprehensive income | The tables below present the effect of the Company's derivative financial instruments, including the Company's share of derivative financial instruments at certain of its equity method investments, in the consolidated statements of operations and the consolidated statements of comprehensive income (loss) ($ in thousands): Derivatives Designated in Hedging Relationships Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings For the Three Months Ended June 30, 2018 Interest rate swaps Earnings from equity method investments $ 1,157 $ 81 Interest rate swaps Interest expense (1,150 ) — For the Three Months Ended June 30, 2017 Interest rate swaps Interest Expense (44 ) 384 Interest rate cap Earnings from equity method investments (9 ) (9 ) Interest rate swap Earnings from equity method investments (93 ) (62 ) Foreign exchange contracts Earnings from equity method investments (70 ) — For the Six Months Ended June 30, 2018 Interest rate swaps Earnings from equity method investments 3,508 90 Interest rate swaps Interest expense (1,150 ) — For the Six Months Ended June 30, 2017 Interest rate swaps Interest Expense 424 355 Interest rate cap Earnings from equity method investments (14 ) (14 ) Interest rate swap Earnings from equity method investments (15 ) (150 ) Foreign exchange contracts Earnings from equity method investments (369 ) — Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Recognized in Income Derivatives not Designated in Hedging Relationships For the Three Months Ended June 30, For the Six Months 2018 2017 2018 2017 Interest rate cap Other Expense $ — $ (41 ) $ — $ 6 Foreign exchange contracts Other Expense — (645 ) — (769 ) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of cumulative redeemable and convertible perpetual preferred stock outstanding by series | The Company had the following series of Cumulative Redeemable and Convertible Perpetual Preferred Stock outstanding as of June 30, 2018 and December 31, 2017: Cumulative Preferential Cash Dividends (1)(2) Series Shares Issued and Outstanding (in thousands) Par Value Liquidation Preference (3)(4) Rate per Annum Equivalent to Fixed Annual Rate (per share) Carrying Value (in thousands) D 4,000 $ 0.001 $ 25.00 8.00 % $ 2.00 $ 89,041 G 3,200 0.001 25.00 7.65 % 1.91 72,664 I 5,000 0.001 25.00 7.50 % 1.88 120,785 J (convertible) (4) 4,000 0.001 50.00 4.50 % 2.25 193,510 16,200 $ 476,000 ________________________________________ (1) Holders of shares of the Series D, G, I and J preferred stock are entitled to receive dividends, when and as declared by the Company's Board of Directors, out of funds legally available for the payment of dividends. Dividends are cumulative from the date of original issue and are payable quarterly in arrears on or before the 15th day of each March, June, September and December or, if not a business day, the next succeeding business day. Any dividend payable on the preferred stock for any partial dividend period will be computed on the basis of a 360 -day year consisting of twelve 30 -day months. Dividends will be payable to holders of record as of the close of business on the first day of the calendar month in which the applicable dividend payment date falls or on another date designated by the Company's Board of Directors for the payment of dividends that is not more than 30 nor less than 10 days prior to the dividend payment date. (2) The Company declared and paid dividends of $4.0 million , $3.1 million and $4.7 million on its Series D, G and I Cumulative Redeemable Preferred Stock during the six months ended June 30, 2018 and 2017 , respectively. The Company declared and paid dividends of $4.5 million on its Series J Convertible Perpetual Preferred Stock during the six months ended June 30, 2018 and 2017 . The Company declared and paid dividends of $5.5 million and $3.9 million on its Series E and F Cumulative Redeemable Preferred Stock, respectively, during the six months ended June 30, 2017. The Company redeemed all of its issued and outstanding Series E and F Cumulative Redeemable Preferred Stock in October 2017. The character of the 2017 dividends was 100% capital gain distribution, of which 27.90% represented unrecaptured section 1250 gain and 72.10% represented long term capital gain. There are no dividend arrearages on any of the preferred shares currently outstanding. (3) The Company may, at its option, redeem the Series G and I Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. (4) Each share of the Series J Preferred Stock is convertible at the holder's option at any time, initially into 3.9087 shares of the Company's common stock (equal to an initial conversion price of approximately $12.79 per share), subject to specified adjustments. On or after March 15, 2018, the Company may, at its option, redeem the Series J Preferred Stock, in whole or in part, at any time and from time to time, for cash at a redemption price equal to 100% of the liquidation preference of $50.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. |
Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity | "Accumulated other comprehensive income (loss)" reflected in the Company's shareholders' equity is comprised of the following ($ in thousands): As of June 30, 2018 December 31, 2017 Unrealized gains on available-for-sale securities $ 655 $ 1,335 Unrealized gains on cash flow hedges 1,311 707 Unrealized losses on cumulative translation adjustment (4,199 ) (4,524 ) Accumulated other comprehensive income (loss) $ (2,233 ) $ (2,482 ) |
Stock-Based Compensation Plan40
Stock-Based Compensation Plans and Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of iPip Activity | The following is a summary of the status of the Company’s iPIP points and changes during the six months ended June 30, 2018 and the year ended December 31, 2017. Six Months Ended June 30, 2018 Year Ended December 31, 2017 iPIP Investment Pool iPIP Investment Pool 2013-2014 2015-2016 2017-2018 2013-2014 2015-2016 2017-2018 Points at beginning of period 86.57 84.16 40.97 92.00 74.10 0 Granted 0.50 — 49.08 5.00 17.88 41.68 Forfeited (0.15 ) (0.89 ) (4.56 ) (10.43 ) (7.82 ) (0.71 ) Points at end of period 86.92 83.27 85.49 86.57 84.16 40.97 |
Schedule of Restricted Stock Units activity | A summary of the Company’s stock-based compensation awards to certain employees in the form of long-term incentive awards for the six months ended June 30, 2018 and the year ended December 31, 2017, are as follows (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Nonvested at beginning of period 282 290 Granted 264 116 Vested (40 ) (75 ) Forfeited (49 ) (49 ) Nonvested at end of period 457 282 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of income (loss) from continuing operations used in the basic and diluted EPS calculations | The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share ("EPS") calculations ($ in thousands, except for per share data): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Income from continuing operations $ 3,611 $ 76,117 $ 21,589 $ 47,869 Income from sales of real estate 56,895 844 73,943 8,954 Net income attributable to noncontrolling interests (9,509 ) (5,710 ) (9,604 ) (4,610 ) Preferred dividends (8,124 ) (12,830 ) (16,248 ) (25,660 ) Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for basic earnings per common share $ 42,873 $ 58,421 $ 69,680 $ 26,553 Add: Effect of joint venture shares — 5 — 9 Add: Effect of Series J convertible perpetual preferred stock 2,250 2,250 4,500 4,500 Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for diluted earnings per common share $ 45,123 $ 60,676 $ 74,180 $ 31,062 |
Schedule of earnings per share allocable to common shares and HPU shares | For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Earnings allocable to common shares: Numerator for basic earnings per share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 42,873 $ 58,421 $ 69,680 $ 26,553 Income from discontinued operations — 173 — 4,939 Gain from discontinued operations — 123,418 — 123,418 Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 42,873 $ 177,467 $ 69,680 $ 150,365 Numerator for diluted earnings per share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 45,123 $ 60,676 $ 74,180 $ 31,062 Income from discontinued operations — 173 — 4,939 Gain from discontinued operations — 123,418 — 123,418 Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 45,123 $ 179,722 $ 74,180 $ 154,874 Denominator for basic and diluted earnings per share: Weighted average common shares outstanding for basic earnings per common share 67,932 72,142 67,922 72,104 Add: Effect of assumed shares issued under treasury stock method for restricted stock units 127 120 125 119 Add: Effect of joint venture shares — 298 — 298 Add: Effect of series J convertible perpetual preferred stock 15,635 15,635 15,635 15,635 Weighted average common shares outstanding for diluted earnings per common share 83,694 88,195 83,682 88,156 Basic earnings per common share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 0.63 $ 0.81 $ 1.03 $ 0.37 Income from discontinued operations — — — 0.07 Gain from discontinued operations — 1.71 — 1.71 Income tax expense from discontinued operations — (0.06 ) — (0.06 ) Net income attributable to iStar Inc. and allocable to common shareholders $ 0.63 $ 2.46 $ 1.03 $ 2.09 Diluted earnings per common share: Income from continuing operations attributable to iStar Inc. and allocable to common shareholders $ 0.54 $ 0.69 $ 0.89 $ 0.35 Income from discontinued operations — — — 0.06 Gain from discontinued operations — 1.40 — 1.40 Income tax expense from discontinued operations — (0.05 ) — (0.05 ) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Net income attributable to iStar Inc. and allocable to common shareholders $ 0.54 $ 2.04 $ 0.89 $ 1.76 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis | The following fair value hierarchy table summarizes the Company's assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands): Fair Value Using Total Quoted market prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) As of June 30, 2018 Recurring basis: Derivative assets (1) $ 8,120 $ — $ 8,120 $ — Derivative liabilities (1) 1,150 — 1,150 — Available-for-sale securities (1) 21,840 $ — $ — 21,840 Non-recurring basis: Impaired real estate (2) 5,632 — — 5,632 Impaired land and development (3) 8,873 — — 8,873 Debt security (4) 77,007 — — 77,007 As of December 31, 2017 Recurring basis: Available-for-sale securities (1) $ 22,842 $ — $ — $ 22,842 Non-recurring basis: Impaired real estate (5) 12,400 — — 12,400 Impaired real estate available and held for sale (6) 800 — — 800 Impaired land and development (7) 21,400 — — 21,400 ____________________________________________________________ (1) The fair value of the Company's derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company's available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3. (2) The Company recorded an impairment on a net lease asset with a fair value of $5.6 million due to the exercise of a below-market lease renewal option related to a net lease asset. (3) The Company recorded an impairment on a land and development asset with a fair value of $8.9 million based on market comparable sales. (4) In connection with the resolution of a non-performing loan, the Company received a preferred equity position with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity position at its fair value of $77.0 million based on a discount rate of 7.375% . (5) The Company recorded an impairment on a real estate asset with a fair value of $12.4 million based on market comparable sales. (6) The Company recorded an impairment on a residential real estate asset available and held for sale based on market comparable sales. (7) The Company recorded an impairment on a land and development asset with a fair value of $21.4 million based on a discount rate of 6% and a 10 year holding period. |
Summary of changes in Level 3 available-for-sale securities reported at fair value | The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company's consolidated balance sheets for the six months ended June 30, 2018 and 2017 ($ in thousands): 2018 2017 Beginning balance $ 22,842 $ 21,666 Repayments (46 ) (10 ) Unrealized gains (losses) recorded in other comprehensive income (956 ) 566 Ending balance $ 21,840 $ 22,222 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of financial measures for each segment based on which performance is evaluated | The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands): Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Three Months Ended June 30, 2018: Operating lease income $ — $ 29,310 $ 15,199 $ 100 $ — $ 44,609 Interest income 25,212 — — — — 25,212 Other income 3,133 698 13,351 1,313 2,328 20,823 Land development revenue — — — 80,927 — 80,927 Earnings (losses) from equity method investments — 2,694 (1,316 ) 1,023 (9,679 ) (7,278 ) Gain on consolidation of equity method investment — 67,877 — — — 67,877 Income from sales of real estate — 24,493 32,402 — — 56,895 Total revenue and other earnings 28,345 125,072 59,636 83,363 (7,351 ) 289,065 Real estate expense — (3,433 ) (23,818 ) (9,792 ) — (37,043 ) Land development cost of sales — — — (83,361 ) — (83,361 ) Other expense (290 ) — — — (3,426 ) (3,716 ) Allocated interest expense (10,648 ) (13,591 ) (4,578 ) (5,308 ) (9,047 ) (43,172 ) Allocated general and administrative (2) (3,852 ) (4,853 ) (1,975 ) (3,747 ) (5,298 ) (19,725 ) Segment profit (loss) (3) $ 13,555 $ 103,195 $ 29,265 $ (18,845 ) $ (25,122 ) $ 102,048 Other significant items: Provision for loan losses $ 18,892 $ — $ — $ — $ — $ 18,892 Impairment of assets — 4,342 446 1,300 — 6,088 Depreciation and amortization — 6,341 3,738 318 370 10,767 Capitalized expenditures — 720 4,623 42,603 — 47,946 Three Months Ended June 30, 2017: Operating lease income $ — $ 30,852 $ 15,940 $ 210 $ — $ 47,002 Interest income 28,645 — — — — 28,645 Other income 479 550 13,333 123,871 1,277 139,510 Land development revenue — — — 132,710 — 132,710 Earnings from equity method investments — 1,080 469 3,606 360 5,515 Income from discontinued operations — 173 — — — 173 Gain from discontinued operations — 123,418 — — — 123,418 Income from sales of real estate — — 844 — — 844 Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Total revenue and other earnings 29,124 156,073 30,586 260,397 1,637 477,817 Real estate expense — (4,064 ) (22,653 ) (7,967 ) — (34,684 ) Land development cost of sales — — — (122,466 ) — (122,466 ) Other expense (399 ) — — — (15,877 ) (16,276 ) Allocated interest expense (10,508 ) (13,669 ) (5,006 ) (7,122 ) (12,502 ) (48,807 ) Allocated general and administrative (2) (4,691 ) (5,921 ) (2,364 ) (5,004 ) (5,323 ) (23,303 ) Segment profit (loss) (3) $ 13,526 $ 132,419 $ 563 $ 117,838 $ (32,065 ) $ 232,281 Other significant items: Recovery of loan losses $ (600 ) $ — $ — $ — $ — $ (600 ) Impairment of assets — 219 — 10,065 — 10,284 Depreciation and amortization — 7,400 4,923 521 327 13,171 Capitalized expenditures — 917 8,355 30,286 — 39,558 Six Months Ended June 30, 2018 Operating lease income $ — $ 59,036 $ 31,016 $ 355 $ — $ 90,407 Interest income 51,909 — — — — 51,909 Other income 3,516 1,746 25,496 1,784 3,600 36,142 Land development revenue — — — 357,356 — 357,356 Earnings (losses) from equity method investments — 6,252 (2,591 ) 2,566 (10,173 ) (3,946 ) Gain on consolidation of equity method investment — 67,877 — — — 67,877 Income from sales of real estate — 24,907 49,036 — — 73,943 Total revenue and other earnings 55,425 159,818 102,957 362,061 (6,573 ) 673,688 Real estate expense — (7,411 ) (45,443 ) (20,370 ) — (73,224 ) Land development cost of sales — — — (306,768 ) — (306,768 ) Other expense (690 ) — — — (4,192 ) (4,882 ) Allocated interest expense (22,413 ) (27,792 ) (10,106 ) (11,781 ) (16,261 ) (88,353 ) Allocated general and administrative (2) (7,821 ) (9,439 ) (4,018 ) (7,552 ) (10,618 ) (39,448 ) Segment profit (loss) (3) $ 24,501 $ 115,176 $ 43,390 $ 15,590 $ (37,644 ) $ 161,013 Other significant non-cash items: Provision for loan losses $ 18,037 $ — $ — $ — $ — $ 18,037 Impairment of assets — 4,342 4,546 1,300 — 10,188 Depreciation and amortization — 12,652 7,664 832 730 21,878 Capitalized expenditures — 1,198 12,324 74,050 — 87,572 Six Months Ended June 30, 2017: Operating lease income $ — $ 62,104 $ 31,929 $ 316 $ — $ 94,349 Interest income 57,703 — — — — 57,703 Other income 556 1,056 23,688 124,256 1,818 151,374 Land development revenue — — — 152,760 — 152,760 Earnings (losses) from equity method investments — 2,062 1,101 7,448 606 11,217 Income from discontinued operations — 4,939 — — — 4,939 Gain from discontinued operations — 123,418 — — — 123,418 Income from sales of real estate — 6,212 2,742 — — 8,954 Total revenue and other earnings 58,259 199,791 59,460 284,780 2,424 604,714 Real Estate Finance Net Lease Operating Properties Land and Development Corporate/Other (1) Company Total Real estate expense — (8,640 ) (44,171 ) (17,463 ) — (70,274 ) Land development cost of sales — — — (138,376 ) — (138,376 ) Other expense (1,004 ) — — — (17,141 ) (18,145 ) Allocated interest expense (22,396 ) (29,404 ) (10,612 ) (15,240 ) (22,300 ) (99,952 ) Allocated general and administrative (2) (8,287 ) (10,563 ) (4,119 ) (8,930 ) (10,697 ) (42,596 ) Segment profit (loss) (3) $ 26,572 $ 151,184 $ 558 $ 104,771 $ (47,714 ) $ 235,371 Other significant non-cash items: Recovery of loan losses $ (5,528 ) $ — $ — $ — $ — $ (5,528 ) Impairment of assets — 219 4,413 10,064 — 14,696 Depreciation and amortization — 15,039 8,962 791 659 25,451 Capitalized expenditures — 1,687 16,566 56,879 — 75,132 As of June 30, 2018 Real estate Real estate, net $ — $ 1,532,589 $ 382,410 $ — $ — $ 1,914,999 Real estate available and held for sale — — 37,597 — — 37,597 Total real estate — 1,532,589 420,007 — — 1,952,596 Land and development, net — — — 641,627 — 641,627 Loans receivable and other lending investments, net 1,052,872 — — — — 1,052,872 Other investments — 147,512 62,024 76,693 6,788 293,017 Total portfolio assets $ 1,052,872 $ 1,680,101 $ 482,031 $ 718,320 $ 6,788 3,940,112 Cash and other assets 1,418,055 Total assets $ 5,358,167 As of December 31, 2017 Real estate Real estate, net $ — $ 815,783 $ 466,248 $ — $ — $ 1,282,031 Real estate available and held for sale — — 68,588 — — 68,588 Total real estate — 815,783 534,836 — — 1,350,619 Land and development, net — — — 860,311 — 860,311 Loans receivable and other lending investments, net 1,300,655 — — — — 1,300,655 Other investments — 205,007 38,761 63,855 13,618 321,241 Total portfolio assets $ 1,300,655 $ 1,020,790 $ 573,597 $ 924,166 $ 13,618 3,832,826 Cash and other assets 898,252 Total assets $ 4,731,078 _______________________________________________________________________________ (1) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above. (2) General and administrative excludes stock-based compensation expense of $3.5 million and $12.6 million for the three and six months ended June 30, 2018 , respectively, and $3.9 million and $9.8 million for the three and six months ended June 30, 2017 , respectively. (3) The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Segment profit $ 102,048 $ 232,281 $ 161,013 $ 235,371 Add: (Provision for) recovery of loan losses (18,892 ) 600 (18,037 ) 5,528 Less: Impairment of assets (6,088 ) (10,284 ) (10,188 ) (14,696 ) Less: Stock-based compensation expense (3,503 ) (3,915 ) (12,593 ) (9,796 ) Less: Depreciation and amortization (10,767 ) (13,171 ) (21,878 ) (25,451 ) Less: Income tax expense (128 ) (1,644 ) (249 ) (2,251 ) Less: Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Less: Loss on early extinguishment of debt, net (2,164 ) (3,315 ) (2,536 ) (3,525 ) Net income $ 60,506 $ 196,007 $ 95,532 $ 180,635 |
Reconciliation of segment profit to income (loss) | The following is a reconciliation of segment profit to net income (loss) ($ in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Segment profit $ 102,048 $ 232,281 $ 161,013 $ 235,371 Add: (Provision for) recovery of loan losses (18,892 ) 600 (18,037 ) 5,528 Less: Impairment of assets (6,088 ) (10,284 ) (10,188 ) (14,696 ) Less: Stock-based compensation expense (3,503 ) (3,915 ) (12,593 ) (9,796 ) Less: Depreciation and amortization (10,767 ) (13,171 ) (21,878 ) (25,451 ) Less: Income tax expense (128 ) (1,644 ) (249 ) (2,251 ) Less: Income tax expense from discontinued operations — (4,545 ) — (4,545 ) Less: Loss on early extinguishment of debt, net (2,164 ) (3,315 ) (2,536 ) (3,525 ) Net income $ 60,506 $ 196,007 $ 95,532 $ 180,635 |
Business and Organization (Deta
Business and Organization (Details) $ in Billions | Jun. 30, 2018USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment across a range of real estate sectors over the past two decades (more than) | $ 40 |
Basis of Presentation and Pri45
Basis of Presentation and Principles of Consolidation (VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Real estate | ||||
Real estate, at cost | $ 2,255,537 | $ 1,629,436 | ||
Less: accumulated depreciation | (340,538) | (347,405) | ||
Real estate, net | 1,914,999 | 1,282,031 | ||
Land and development, net | 641,627 | 860,311 | ||
Other investments | 293,017 | 321,241 | ||
Cash and cash equivalents | 1,039,591 | 657,688 | $ 954,279 | $ 328,744 |
Accrued interest and operating lease income receivable, net | 10,994 | 11,957 | ||
Deferred expenses and other assets, net | 279,390 | 141,730 | ||
Total assets | 5,358,167 | 4,731,078 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 249,494 | 238,004 | ||
Debt obligations, net | 3,869,576 | 3,476,400 | ||
Total liabilities | 4,133,779 | 3,816,829 | ||
Consolidated VIEs | ||||
Real estate | ||||
Real estate, at cost | 817,979 | 47,073 | ||
Less: accumulated depreciation | (4,593) | (2,732) | ||
Real estate, net | 813,386 | 44,341 | ||
Land and development, net | 242,213 | 212,408 | ||
Other investments | 88 | 0 | ||
Cash and cash equivalents | 12,918 | 10,704 | ||
Accrued interest and operating lease income receivable, net | 557 | 230 | ||
Deferred expenses and other assets, net | 179,129 | 29,929 | ||
Total assets | 1,248,291 | 297,612 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 99,784 | 38,616 | ||
Debt obligations, net | 464,706 | 0 | ||
Total liabilities | 564,490 | $ 38,616 | ||
Unconsolidated VIEs | ||||
Liabilities: | ||||
Carrying value of the investments | 88,500 | |||
Variable interest entity unfunded commitment | $ 22,700 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements | |||||
Increase (decrease) to cash flows provided by operating activities | $ (21,136) | $ 111,552 | |||
Decrease to cash flows provided by investing activities | 156,116 | (166,929) | |||
Decrease to net cash provided by investing activities | (566,479) | (344,544) | |||
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | |||||
Cash and cash equivalents | 1,039,591 | 954,279 | $ 657,688 | $ 328,744 | |
Restricted cash included in deferred expenses and other assets, net | 27,399 | 23,380 | 20,045 | 25,883 | |
Total cash, cash equivalents and restricted cash reported in the consolidated statements of cash flows | 1,066,990 | 977,659 | 677,733 | 354,627 | |
Impact of Adoption on Consolidated Financial Statements | |||||
Other investments | 293,017 | 321,241 | |||
Total assets | 5,358,167 | 4,731,078 | |||
Retained deficit | (2,325,291) | (2,470,564) | |||
Total equity | $ 1,212,574 | 1,205,356 | $ 914,249 | $ 1,059,684 | |
Accounting Standards Update 2016-15 | |||||
New Accounting Pronouncements | |||||
Increase (decrease) to cash flows provided by operating activities | 9,300 | ||||
Decrease to cash flows provided by investing activities | 9,300 | ||||
Accounting Standards Update 2016-18 | |||||
New Accounting Pronouncements | |||||
Increase (decrease) to cash flows provided by operating activities | (700) | ||||
Decrease to net cash provided by investing activities | $ 1,800 | ||||
Accounting Standards Update 2017-05 | |||||
Impact of Adoption on Consolidated Financial Statements | |||||
Other investments | $ 397,110 | ||||
Total assets | 4,806,947 | ||||
Retained deficit | (2,394,695) | ||||
Total equity | 990,118 | ||||
Impact of Adoption of ASU | Accounting Standards Update 2017-05 | |||||
Impact of Adoption on Consolidated Financial Statements | |||||
Other investments | 75,869 | ||||
Total assets | 75,869 | ||||
Retained deficit | 75,869 | ||||
Total equity | $ 75,869 |
Real Estate (Schedule of Real E
Real Estate (Schedule of Real Estate Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real Estate Properties [Line Items] | ||
Land, at cost | $ 517,899 | $ 422,370 |
Buildings and improvements, at cost | 1,737,638 | 1,207,066 |
Less: accumulated depreciation | (340,538) | (347,405) |
Real estate, net | 1,914,999 | 1,282,031 |
Real estate available and held for sale | 37,597 | 68,588 |
Total real estate | 1,952,596 | 1,350,619 |
Net Lease | ||
Real Estate Properties [Line Items] | ||
Land, at cost | 335,926 | 219,092 |
Buildings and improvements, at cost | 1,495,393 | 888,959 |
Less: accumulated depreciation | (298,730) | (292,268) |
Real estate, net | 1,532,589 | 815,783 |
Real estate available and held for sale | 0 | 0 |
Total real estate | 1,532,589 | 815,783 |
Net Lease | Net lease venture | ||
Real Estate Properties [Line Items] | ||
Real estate, net | 743,600 | |
Operating Properties | ||
Real Estate Properties [Line Items] | ||
Land, at cost | 181,973 | 203,278 |
Buildings and improvements, at cost | 242,245 | 318,107 |
Less: accumulated depreciation | (41,808) | (55,137) |
Real estate, net | 382,410 | 466,248 |
Real estate available and held for sale | 37,597 | 68,588 |
Total real estate | 420,007 | 534,836 |
Residential Operating Properties | ||
Real Estate Properties [Line Items] | ||
Real estate available and held for sale | $ 36,700 | $ 48,500 |
Real Estate (Dispositions) (Det
Real Estate (Dispositions) (Details) | Apr. 14, 2017USD ($) | Jun. 30, 2018USD ($) | Apr. 30, 2017USD ($)leaseproperty | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Mar. 31, 2017USD ($) | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Net proceeds from sales of real estate | $ 36,100,000 | $ 238,834,000 | $ 154,291,000 | |||||||||||
Payments to acquire equity method investments | 53,012,000 | 139,139,000 | ||||||||||||
Income from sales of real estate | 24,500,000 | $ 56,895,000 | [1] | $ 844,000 | [1] | 73,943,000 | [1] | 8,954,000 | [1] | |||||
Retained deficit | $ (2,325,291,000) | $ (2,325,291,000) | $ (2,325,291,000) | $ (2,470,564,000) | ||||||||||
Safety, Income and Growth, Inc. | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Carrying value of properties | $ 161,100,000 | |||||||||||||
Income from sales of real estate | $ 123,400,000 | |||||||||||||
Safety, Income and Growth, Inc. | Ground Net Lease Business | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of properties | property | 12 | |||||||||||||
Number of ground net leases | lease | 7 | |||||||||||||
Number of master leases | lease | 1 | |||||||||||||
Number of properties covered under master lease agreement | property | 5 | |||||||||||||
Net proceeds from sales of real estate | $ 113,000,000 | $ 113,000,000 | ||||||||||||
Payments to acquire equity method investments | $ 55,500,000 | $ 55,500,000 | ||||||||||||
2017 Secured Financing | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 227,000,000 | $ 227,000,000 | $ 227,000,000 | |||||||||||
Accounting Standards Update 2017-05 | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Retained deficit | $ (2,394,695,000) | |||||||||||||
Accounting Standards Update 2017-05 | New Accounting Pronouncement, Early Adoption, Effect | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Retained deficit | $ 55,500,000 | |||||||||||||
Accounting Standards Update 2017-05 | New Accounting Pronouncement, Early Adoption, Effect | Ground Net Lease Business | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Gain on sale of business | $ 178,900,000 | |||||||||||||
[1] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Real Estate (Discontinued Opera
Real Estate (Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash flows provided by discontinued operations, operating activities | $ 5,700 | |
Cash flows used in discontinued operations, investing activities | 500 | |
Ground Net Lease Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | $ 678 | 5,922 |
Expenses | (505) | (1,491) |
Income sales of real estate | 0 | 508 |
Income from discontinued operations | $ 173 | $ 4,939 |
Real Estate (Other Dispositions
Real Estate (Other Dispositions) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | [1] | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Income from sales of real estate | $ 24,500 | $ 56,895 | $ 844 | $ 73,943 | [1] | $ 8,954 | [1] | ||
Operating Properties | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Number of Real Estate Properties Sold | property | 4 | ||||||||
Proceeds | $ 196,200 | 17,600 | |||||||
Income from sales of real estate | $ 49,000 | 2,700 | |||||||
Operating Properties, Noncontrolling Interest | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Number of Real Estate Properties Sold | property | 1 | ||||||||
Income from sales of real estate | $ 9,800 | ||||||||
Net Lease | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Number of Real Estate Properties Sold | property | 3 | ||||||||
Proceeds | $ 38,400 | 19,500 | |||||||
Income from sales of real estate | 24,900 | 6,200 | |||||||
Total | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds | 234,600 | 37,100 | |||||||
Income from sales of real estate | $ 73,900 | $ 8,900 | |||||||
[1] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Real Estate (Impairments) (Deta
Real Estate (Impairments) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)Condominium_Unit | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Condominium_Unit | Jun. 30, 2017USD ($) | |
Investment [Line Items] | ||||
Impairment of assets | $ 6,088 | $ 10,284 | $ 10,188 | $ 14,696 |
Number of units to be sold per contract | Condominium_Unit | 4 | 4 | ||
Held-for-Sale, Impending Contract to Sell Condominiums | ||||
Investment [Line Items] | ||||
Impairment of assets | $ 8,900 | |||
Held-for-Sale, Change in Business Strategy | ||||
Investment [Line Items] | ||||
Impairment of assets | $ 4,400 |
Real Estate (Tenant Reimburseme
Real Estate (Tenant Reimbursements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Lease Income | ||||
Real Estate Properties [Line Items] | ||||
Tenant reimbursements | $ 5 | $ 5.2 | $ 10.6 | $ 10.7 |
Real Estate (Allowance for Doub
Real Estate (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Real Estate Tenant Receivables | ||
Schedule of Operating Lease Allowance for Doubtful Accounts [Line Items] | ||
Allowance for doubtful accounts receivable | $ 1.3 | $ 1.3 |
Deferred Operating Lease | ||
Schedule of Operating Lease Allowance for Doubtful Accounts [Line Items] | ||
Allowance for doubtful accounts receivable | $ 1.5 | $ 1.3 |
Land and Development (Schedule
Land and Development (Schedule of Land and Development) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Land and Development Assets | |||
Total land and development, net | $ 641,627 | $ 860,311 | |
Capital expenditures on land and development assets | 61,577 | $ 53,894 | |
Land & Development | |||
Land and Development Assets | |||
Land and land development, at cost | 649,783 | 868,692 | |
Less: accumulated depreciation | (8,156) | (8,381) | |
Total land and development, net | $ 641,627 | $ 860,311 |
Land and Development (Acquisiti
Land and Development (Acquisitions, Dispositions, Impairments) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($)a | Jun. 30, 2018USD ($)aproperty | Jun. 30, 2017USD ($)a | |
Property, Plant and Equipment [Line Items] | ||||
Increase in net lease assets upon consolidation of equity method investment | $ 844,550 | $ 0 | ||
Land development revenue | $ 80,927 | $ 132,710 | $ 357,356 | 152,760 |
Number of land parcels sold | property | 2 | |||
Area of land parcels sold (acres) | a | 93 | |||
Land development cost of sales | 83,361 | 122,466 | $ 306,768 | 138,376 |
Prince George's County, Maryland | ||||
Property, Plant and Equipment [Line Items] | ||||
Land development revenue | 114,000 | 114,000 | ||
Land development cost of sales | $ 106,300 | $ 106,300 | ||
Land subject to litigation (acres) | a | 1,250 | 1,250 | ||
Land & Development | ||||
Property, Plant and Equipment [Line Items] | ||||
Notes receivable issued for sale of land | 145,000 | |||
Proceeds from collection of notes receivable | $ 81,200 | |||
Impairment charges | 1,300 | $ 10,100 | ||
Land & Development | Foreclosure | ||||
Property, Plant and Equipment [Line Items] | ||||
Increase in net lease assets upon consolidation of equity method investment | $ 4,600 |
Loans Receivable and Other Le56
Loans Receivable and Other Lending Investments, net (Schedule of Loans Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross carrying value of loans | $ 989,002 | $ 1,289,568 | ||||
Reserves for loan losses | (54,495) | $ (69,466) | (78,489) | $ (78,789) | $ (79,389) | $ (85,545) |
Total loans receivable, net | 934,507 | 1,211,079 | ||||
Other lending investments—securities | 118,365 | 89,576 | ||||
Total loans receivable and other lending investments, net | 1,052,872 | 1,300,655 | ||||
Senior mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross carrying value of loans | 849,192 | 791,152 | ||||
Corporate/Partnership loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross carrying value of loans | 129,988 | 488,921 | ||||
Subordinate mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross carrying value of loans | 9,822 | $ 9,495 | ||||
Non-performing loan | Corporate/Partnership loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total gross carrying value of loans | $ 145,800 |
Loans Receivable and Other Le57
Loans Receivable and Other Lending Investments, net (Reserve for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Loan Losses [Roll Forward] | ||||
Reserve for loan losses at beginning of period | $ 69,466 | $ 79,389 | $ 78,489 | $ 85,545 |
Provision for (recovery of) loan losses | 18,892 | (600) | 18,037 | (5,528) |
Charge-offs | (33,863) | 0 | (42,031) | (1,228) |
Reserve for loan losses at end of period | $ 54,495 | $ 78,789 | $ 54,495 | $ 78,789 |
Loans Receivable and Other Le58
Loans Receivable and Other Lending Investments, net (Loans and Associated Reserve for Loan Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans | $ 994,142 | $ 1,294,821 | ||||
Less: Reserve for loan losses | (54,495) | $ (69,466) | (78,489) | $ (78,789) | $ (79,389) | $ (85,545) |
Total | 939,647 | 1,216,332 | ||||
Interest receivable | 5,100 | 5,300 | ||||
Held-to-maturity and available-for-sale securities | 118,365 | 89,576 | ||||
Individually Evaluated for Impairment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans | 67,068 | 237,877 | ||||
Less: Reserve for loan losses | (40,395) | (60,989) | ||||
Total | 26,673 | 176,888 | ||||
Unamortized discounts, premiums, deferred fees and costs, net (discount) or premium | (500) | (700) | ||||
Collectively Evaluated for Impairment | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans | 927,074 | 1,056,944 | ||||
Less: Reserve for loan losses | (14,100) | (17,500) | ||||
Total | 912,974 | 1,039,444 | ||||
Unamortized discounts, premiums, deferred fees and costs, net (discount) or premium | $ (3,700) | $ 6,200 |
Loans Receivable and Other Le59
Loans Receivable and Other Lending Investments, net (Credit Characteristics for Performing Loans) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | $ 994,142 | $ 1,294,821 |
Senior mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | 853,467 | 794,400 |
Corporate/Partnership loans | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | 130,823 | 490,898 |
Subordinate mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | 9,852 | 9,523 |
Real Estate Finance | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | $ 927,074 | $ 1,056,944 |
Weighted Average Risk Ratings | 2.79 | 2.77 |
Real Estate Finance | Senior mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | $ 786,399 | $ 713,057 |
Weighted Average Risk Ratings | 2.78 | 2.72 |
Real Estate Finance | Corporate/Partnership loans | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | $ 130,823 | $ 334,364 |
Weighted Average Risk Ratings | 2.85 | 2.85 |
Real Estate Finance | Subordinate mortgages | ||
Recorded Investments in loans, presented by class and by credit quality, as indicated by risk rating | ||
Performing Loans | $ 9,852 | $ 9,523 |
Weighted Average Risk Ratings | 3 | 3 |
Loans Receivable and Other Le60
Loans Receivable and Other Lending Investments, net (Credit Characteristics by Payment Status) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Recorded investment in loans, aged by payment status and presented by class | ||
Current | $ 933,074 | $ 1,062,944 |
Less Than and Equal to 90 Days | 0 | 0 |
Greater Than 90 Days | 61,068 | 231,877 |
Total Past Due | 61,068 | 231,877 |
Loans | $ 994,142 | $ 1,294,821 |
Financing receivable, number of loans greater than 90 days past due | loan | 2 | 4 |
Financing receivables, past due time period | 90 days | 90 days |
Minimum | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Financing receivables, past due time period | 3 years | 1 year |
Maximum | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Financing receivables, past due time period | 9 years | 9 years |
Senior mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | $ 792,399 | $ 719,057 |
Less Than and Equal to 90 Days | 0 | 0 |
Greater Than 90 Days | 61,068 | 75,343 |
Total Past Due | 61,068 | 75,343 |
Loans | 853,467 | 794,400 |
Corporate/Partnership loans | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 130,823 | 334,364 |
Less Than and Equal to 90 Days | 0 | 0 |
Greater Than 90 Days | 0 | 156,534 |
Total Past Due | 0 | 156,534 |
Loans | 130,823 | 490,898 |
Subordinate mortgages | ||
Recorded investment in loans, aged by payment status and presented by class | ||
Current | 9,852 | 9,523 |
Less Than and Equal to 90 Days | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Loans | $ 9,852 | $ 9,523 |
Loans Receivable and Other Le61
Loans Receivable and Other Lending Investments, net (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | $ 145,590 | $ 250,230 | $ 176,352 | $ 251,467 | |
Interest Income Recognized | 0 | 0 | 92 | 0 | |
Non-performing loan | |||||
Total gross carrying value of loans | 989,002 | 989,002 | $ 1,289,568 | ||
Preferred equity security, face value | $ 100,000 | 100,000 | |||
Preferred equity security, mandatory redemption period | 5 years | ||||
Senior mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | $ 67,252 | 82,368 | 71,949 | 83,556 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Non-performing loan | |||||
Total gross carrying value of loans | 849,192 | 849,192 | 791,152 | ||
Corporate/Partnership loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 78,338 | 156,839 | 104,403 | 156,941 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Non-performing loan | |||||
Total gross carrying value of loans | 129,988 | 129,988 | 488,921 | ||
Subordinate mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 11,023 | 0 | 10,970 | |
Interest Income Recognized | 0 | 0 | 92 | 0 | |
Non-performing loan | |||||
Total gross carrying value of loans | 9,822 | 9,822 | 9,495 | ||
With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 11,023 | 0 | 10,970 | |
Interest Income Recognized | 0 | 0 | 92 | 0 | |
With no related allowance recorded | Subordinate mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average Recorded Investment | 0 | 11,023 | 0 | 10,970 | |
Interest Income Recognized | 0 | 0 | 92 | 0 | |
With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 67,068 | 67,068 | 237,877 | ||
Unpaid Principal Balance | 67,451 | 67,451 | 227,280 | ||
Related Allowance | (40,395) | (40,395) | (60,989) | ||
Average Recorded Investment | 145,590 | 239,207 | 176,352 | 240,497 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance recorded | Senior mortgages | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 67,068 | 67,068 | 81,343 | ||
Unpaid Principal Balance | 67,451 | 67,451 | 81,431 | ||
Related Allowance | (40,395) | (40,395) | (48,518) | ||
Average Recorded Investment | 67,252 | 82,368 | 71,949 | 83,556 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
With an allowance recorded | Corporate/Partnership loans | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | 0 | 0 | 156,534 | ||
Unpaid Principal Balance | 0 | 0 | 145,849 | ||
Related Allowance | 0 | 0 | $ (12,471) | ||
Average Recorded Investment | 78,338 | 156,839 | 104,403 | 156,941 | |
Interest Income Recognized | 0 | $ 0 | 0 | $ 0 | |
Non-performing loan | Corporate/Partnership loans | |||||
Non-performing loan | |||||
Total gross carrying value of loans | 145,800 | $ 145,800 | |||
Proceeds from repayment of loan | 45,800 | ||||
Loan loss provision | $ 21,400 |
Loans Receivable and Other Le62
Loans Receivable and Other Lending Investments, net (Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-Sale Securities | ||
Amortized Cost Basis | $ 21,185 | |
Estimated Fair Value | 21,840 | |
Held-to-Maturity Securities | ||
Amortized Cost Basis | 96,525 | |
Estimated Fair Value | 96,903 | |
Investments, Debt and Equity Securities [Abstract] | ||
Face Value | 140,723 | $ 87,848 |
Amortized Cost Basis | 117,710 | 87,964 |
Net Unrealized Gain | 1,033 | 3,193 |
Estimated Fair Value | 118,743 | 91,157 |
Net Carrying Value | 118,365 | 89,576 |
Municipal debt securities | ||
Available-for-Sale Securities | ||
Face Value | 21,185 | 21,230 |
Amortized Cost Basis | 21,185 | 21,230 |
Net Unrealized Gain | 655 | 1,612 |
Estimated Fair Value | 21,840 | 22,842 |
Net Carrying Value | 21,840 | 22,842 |
Debt securities | ||
Held-to-Maturity Securities | ||
Face Value | 119,538 | 66,618 |
Amortized Cost Basis | 96,525 | 66,734 |
Net Unrealized Gain | 378 | 1,581 |
Estimated Fair Value | 96,903 | 68,315 |
Net Carrying Value | $ 96,525 | $ 66,734 |
Loans Receivable and Other Le63
Loans Receivable and Other Lending Investments, net (Maturities) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Amortized Cost Basis | |
Within one year | $ 19,518 |
After one year through 5 years | 77,007 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Amortized Cost Basis | 96,525 |
Estimated Fair Value | |
Within one year | 19,896 |
After one year through 5 years | 77,007 |
After 5 years through 10 years | 0 |
After 10 years | 0 |
Total | 96,903 |
Amortized Cost Basis | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 21,185 |
Amortized Cost Basis | 21,185 |
Estimated Fair Value | |
Within one year | 0 |
After one year through 5 years | 0 |
After 5 years through 10 years | 0 |
After 10 years | 21,840 |
Total | $ 21,840 |
Other Investments (Schedule of
Other Investments (Schedule of Other Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | $ 293,017 | $ 293,017 | $ 321,241 | ||
Earnings (losses) from equity method investments | (7,278) | $ 5,515 | (3,946) | $ 11,217 | |
Impairment on foreign equity method investment | 10,000 | ||||
Other strategic investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | 6,789 | 6,789 | 13,618 | ||
Earnings (losses) from equity method investments | (9,679) | 360 | (10,173) | 607 | |
Real estate equity investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | 286,228 | 286,228 | 307,623 | ||
Earnings (losses) from equity method investments | 2,401 | 5,155 | 6,227 | 10,610 | |
Real estate equity investments | Net lease venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | 0 | 0 | 121,139 | ||
Earnings (losses) from equity method investments | 2,016 | 1,032 | 4,100 | 2,013 | |
Real estate equity investments | Safety, Income and Growth, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | 147,512 | 147,512 | 83,868 | ||
Earnings (losses) from equity method investments | 680 | 48 | 2,152 | 48 | |
Real estate equity investments | Other real estate equity investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments, carrying value | 138,716 | 138,716 | $ 102,616 | ||
Earnings (losses) from equity method investments | $ (295) | $ 4,075 | $ (25) | $ 8,549 |
Other Investments (Narrative) (
Other Investments (Narrative) (Details) | Jun. 27, 2017USD ($) | Apr. 14, 2017USD ($) | Jun. 30, 2018USD ($)leasefacility | May 31, 2018USD ($) | Oct. 31, 2017USD ($)unit | Aug. 31, 2017USD ($) | Apr. 30, 2017USD ($)property | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)plan$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Jan. 01, 2018USD ($) | Mar. 31, 2017USD ($) | ||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Gain on consolidation of equity method investment | $ 67,877,000 | $ 0 | $ 67,877,000 | $ 0 | ||||||||||||||||
Increase in noncontrolling interest from consolidation of equity method investment | 188,279,000 | |||||||||||||||||||
Increase in redeemable noncontrolling interest from consolidation of equity method investment | 11,800,000 | |||||||||||||||||||
Payments to acquire equity method investments | 53,012,000 | 139,139,000 | ||||||||||||||||||
Carrying value of assets | $ 5,358,167,000 | 5,358,167,000 | 5,358,167,000 | $ 5,358,167,000 | $ 4,731,078,000 | |||||||||||||||
Net proceeds from sales of real estate | 36,100,000 | 238,834,000 | 154,291,000 | |||||||||||||||||
Gain from discontinued operations | 0 | 123,418,000 | 0 | 123,418,000 | ||||||||||||||||
Retained deficit | (2,325,291,000) | (2,325,291,000) | (2,325,291,000) | (2,325,291,000) | (2,470,564,000) | |||||||||||||||
Debt obligation | 3,928,372,000 | 3,928,372,000 | 3,928,372,000 | 3,928,372,000 | 3,539,991,000 | |||||||||||||||
Carrying value of loans | $ 989,002,000 | 989,002,000 | 989,002,000 | 989,002,000 | 1,289,568,000 | |||||||||||||||
Number of industrial facilities sold | facility | 2 | |||||||||||||||||||
Number of ground leases structured and entered into | lease | 2 | |||||||||||||||||||
Number of ground leases sold | lease | 2 | |||||||||||||||||||
Gain on sale of real estate | $ 24,500,000 | 56,895,000 | [1] | 844,000 | [1] | 73,943,000 | [1] | 8,954,000 | [1] | |||||||||||
Equity method investments, carrying value | $ 293,017,000 | $ 293,017,000 | $ 293,017,000 | $ 293,017,000 | 321,241,000 | |||||||||||||||
iStar Net Lease II LLC | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity interest in lease acquisition and development venture (percent) | 51.90% | 51.90% | 51.90% | 51.90% | ||||||||||||||||
Net lease venture | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity method investment, related party ownership percentage | 0.60% | 0.60% | 0.60% | 0.60% | ||||||||||||||||
Equity method investment, related party promote fee percentage | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||||||||
Equity method investment, partner ownership percentage | 47.50% | 47.50% | 47.50% | 47.50% | ||||||||||||||||
Net lease venture | Other income | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Management fees revenue | $ 700,000 | 500,000 | $ 1,300,000 | 900,000 | ||||||||||||||||
Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Management fees waived | 900,000 | 1,800,000 | ||||||||||||||||||
Reimbursement revenue waived | 400,000 | 800,000 | ||||||||||||||||||
Other real estate equity investments | Operating Properties | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Payments to acquire equity method investments | $ 7,000,000 | |||||||||||||||||||
Equity method investments, carrying value | $ 62,000,000 | 62,000,000 | 62,000,000 | $ 62,000,000 | 38,800,000 | |||||||||||||||
Loan commitments | $ 27,000,000 | |||||||||||||||||||
Loans receivable, carrying value | 26,800,000 | 26,800,000 | 26,800,000 | 26,800,000 | 25,400,000 | |||||||||||||||
Interest income | 500,000 | 500,000 | 1,000,000 | 900,000 | ||||||||||||||||
Other real estate equity investments | Land & Development | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity method investments, carrying value | $ 76,700,000 | $ 76,700,000 | $ 76,700,000 | $ 76,700,000 | $ 61,300,000 | |||||||||||||||
Other real estate equity investments | Minimum | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity interest in lease acquisition and development venture (percent) | 15.50% | 15.50% | 15.50% | 15.50% | ||||||||||||||||
Other real estate equity investments | Maximum | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity interest in lease acquisition and development venture (percent) | 95.00% | 95.00% | 95.00% | 95.00% | ||||||||||||||||
Great Oaks | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Lessor, operating lease, term of contract | 99 years | |||||||||||||||||||
Real estate, leasehold improvement allowance | $ 7,200,000 | |||||||||||||||||||
Forward purchase contract, purchase agreement, amount | $ 34,000,000 | |||||||||||||||||||
Number of units in real estate property to be built | unit | 301 | |||||||||||||||||||
Great Oaks | Leasehold First Mortgage | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Debt obligation | $ 80,500,000 | |||||||||||||||||||
Carrying value of loans | $ 80,500,000 | |||||||||||||||||||
Newly formed unconsolidated entity | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity interest in lease acquisition and development venture (percent) | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||||||||||
Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Equity interest in lease acquisition and development venture (percent) | 39.80% | 39.80% | 39.80% | 39.80% | ||||||||||||||||
Contributions by majority shareholders | $ 57,500,000 | |||||||||||||||||||
Carrying value of assets | 161,100,000 | |||||||||||||||||||
Gain from discontinued operations | $ 123,400,000 | |||||||||||||||||||
Gain on sale of real estate | 123,400,000 | |||||||||||||||||||
Safety, Income and Growth, Inc. | Ground Lease | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Commitment to provide loan to lessee | $ 19,900,000 | $ 24,000,000 | ||||||||||||||||||
Loan term | 1 year | 1 year | ||||||||||||||||||
Amount of loan funded | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 | ||||||||||||||||
Safety, Income and Growth, Inc. | Private Placement | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Proceeds from issuance initial public offering | $ 205,000,000 | |||||||||||||||||||
Proceeds from issuance of private placement | 45,000,000 | |||||||||||||||||||
Safety, Income and Growth, Inc. | IPO | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Payments of stock issuance costs | 18,900,000 | |||||||||||||||||||
Offering costs | $ 25,000,000 | |||||||||||||||||||
Wholly-owned Subsidiary | Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Management fee, percent of equity below threshold | 1.00% | |||||||||||||||||||
Management fee, shareholders' equity threshold amount | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,500,000,000 | ||||||||||||||||
Management fee, percent of equity above threshold | 0.75% | |||||||||||||||||||
Ground Net Lease Business | Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Payments to acquire equity method investments | $ 55,500,000 | 55,500,000 | ||||||||||||||||||
Noncontrolling interest (as a percent) | 49.10% | |||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 50.90% | |||||||||||||||||||
Net proceeds from sales of real estate | $ 113,000,000 | $ 113,000,000 | ||||||||||||||||||
Number of properties | property | 12 | |||||||||||||||||||
2017 Secured Financing | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | $ 227,000,000 | $ 227,000,000 | $ 227,000,000 | |||||||||||||||||
10b5-1 Plan | Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Number of shares purchased | shares | 2,200,000 | |||||||||||||||||||
Aggregate value of common stock purchased | $ 41,700,000 | |||||||||||||||||||
Average share price (in dollars per share) | $ / shares | $ 18.67 | |||||||||||||||||||
Common stock purchase plan, number of plans | plan | 2 | |||||||||||||||||||
Chief Executive Officer and Chief Financial Officer | 10b5-1 Plan | Safety, Income and Growth, Inc. | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Number of shares purchased | shares | 26,000 | |||||||||||||||||||
Aggregate value of common stock purchased | $ 500,000 | |||||||||||||||||||
Average share price (in dollars per share) | $ / shares | $ 19.20 | |||||||||||||||||||
Accounting Standards Update 2017-05 | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Carrying value of assets | $ 4,806,947,000 | |||||||||||||||||||
Retained deficit | (2,394,695,000) | |||||||||||||||||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-05 | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Retained deficit | $ 55,500,000 | |||||||||||||||||||
New Accounting Pronouncement, Early Adoption, Effect | Accounting Standards Update 2017-05 | Ground Net Lease Business | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Gain on sale of business | $ 178,900,000 | |||||||||||||||||||
[1] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Other Assets and Other Liabil66
Other Assets and Other Liabilities (Schedule of Other Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Expenses and Other Assets, Net | ||||||
Intangible assets, net | $ 162,014 | $ 162,014 | $ 27,124 | |||
Other receivables | 47,355 | 47,355 | 56,369 | |||
Other assets | 29,952 | 29,952 | 23,081 | |||
Restricted cash | 27,399 | $ 23,380 | 27,399 | $ 23,380 | 20,045 | $ 25,883 |
Leasing costs, net | 7,141 | 7,141 | 9,050 | |||
Corporate furniture, fixtures and equipment, net | 4,362 | 4,362 | 4,652 | |||
Deferred financing fees, net | 1,167 | 1,167 | 1,409 | |||
Deferred expenses and other assets, net | 279,390 | 279,390 | 141,730 | |||
Intangible assets, accumulated amortization | 30,900 | 30,900 | 34,900 | |||
Amortization of above market lease | 400 | 800 | 800 | 1,600 | ||
Accumulated amortization on leasing costs | 3,900 | 3,900 | 4,700 | |||
Accumulated depreciation on corporate furniture, fixtures and equipment | 11,200 | 11,200 | 10,500 | |||
Depreciation and Amortization | ||||||
Deferred Expenses and Other Assets, Net | ||||||
Amortization of intangible assets | 400 | $ 700 | 700 | $ 1,200 | ||
Operating Properties | ||||||
Deferred Expenses and Other Assets, Net | ||||||
Other receivables | 26,500 | 26,500 | $ 26,000 | |||
Net lease venture | ||||||
Deferred Expenses and Other Assets, Net | ||||||
Intangible assets, net | $ 135,300 | $ 135,300 |
Other Assets and Other Liabil67
Other Assets and Other Liabilities (Schedule of Other Liabilities) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Accrued expenses | $ 87,734 | $ 87,734 | $ 101,035 | ||
Other liabilities | 69,368 | 69,368 | 79,015 | ||
Accrued interest payable | 50,359 | 50,359 | 49,933 | ||
Intangible liabilities, net | 42,033 | 42,033 | 8,021 | ||
Accounts payable, accrued expenses and other liabilities | 249,494 | 249,494 | 238,004 | ||
Developer fee payable | 18,500 | 18,500 | 29,200 | ||
Special assessment bond | 4,300 | 4,300 | 6,200 | ||
Below market lease, accumulated amortization | 5,900 | 5,900 | 7,800 | ||
Amortization of below market lease | 100 | $ 800 | 300 | $ 1,000 | |
Real Estate Available and Held for Sale | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Accrued expenses | 2,300 | $ 2,300 | 2,500 | ||
Residential Real Estate | Master Planned Community | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Number of properties | property | 2 | ||||
Real Estate Assets Held-for-Sale | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Other liabilities | 700 | $ 700 | $ 1,600 | ||
Net lease venture | |||||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Intangible liabilities, net | $ 34,300 | $ 34,300 |
Loan Participations Payable, 68
Loan Participations Payable, net (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Loan Participations Payable, net [Line Items] | ||
Unamortized discounts and deferred financing costs, net | $ (58,796) | $ (63,591) |
Loan participations payable, net | 14,709 | 102,425 |
Loans receivable | 934,507 | $ 1,211,079 |
Loan participations payable, net | ||
Loan Participations Payable, net [Line Items] | ||
Loan participations payable, gross | $ 93,800 | |
Number of loan participations repaid | loan | 1 | |
Loans receivable | $ 93,600 | |
Number of loan participations payable | loan | 1 | 2 |
Weighted average interest rate (as a percent) | 6.60% | 6.50% |
Loan participations payable, net | ||
Loan Participations Payable, net [Line Items] | ||
Loan participations payable, gross | $ 14,938 | $ 102,737 |
Unamortized discounts and deferred financing costs, net | (229) | (312) |
Loan participations payable, net | ||
Loan Participations Payable, net [Line Items] | ||
Loans receivable | $ 14,700 | $ 102,300 |
Debt Obligations, net (Schedule
Debt Obligations, net (Schedule of Debt) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jul. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Oct. 31, 2017 | Aug. 31, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 3,928,372,000 | $ 3,928,372,000 | $ 3,928,372,000 | $ 3,539,991,000 | |||||||
Debt discounts and deferred financing costs, net | (58,796,000) | (58,796,000) | (58,796,000) | (63,591,000) | |||||||
Total debt obligations, net | 3,869,576,000 | 3,869,576,000 | 3,869,576,000 | 3,476,400,000 | |||||||
Interest costs capitalized | 2,100,000 | $ 2,000,000 | 4,500,000 | $ 4,000,000 | |||||||
2015 $325 million Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | 0 | 0 | $ 0 | 325,000,000 | |||||||
Converted term loan, term | 1 year | ||||||||||
2015 $325 million Revolving Credit Facility | Minimum | Interest Rate Category One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.25% | ||||||||||
2015 $325 million Revolving Credit Facility | Minimum | Interest Rate Category Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.25% | ||||||||||
2015 $325 million Revolving Credit Facility | Maximum | Interest Rate Category One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.75% | ||||||||||
2015 $325 million Revolving Credit Facility | Maximum | Interest Rate Category Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.75% | ||||||||||
2015 $325 million Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.50% | ||||||||||
2015 $325 million Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||||||||||
2015 $325 million Revolving Credit Facility | Federal Funds Effective Swap Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 0.50% | ||||||||||
2016 Senior Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | 650,000,000 | 650,000,000 | $ 650,000,000 | 399,000,000 | |||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | ||||||||||
Debt instrument, face amount | $ 650,000,000 | $ 400,000,000 | 650,000,000 | $ 650,000,000 | $ 500,000,000 | $ 450,000,000 | |||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 2.75% | 3.00% | 2.75% | ||||||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 0.75% | ||||||||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 1.75% | ||||||||||
2016 Senior Term Loan | Federal Funds Effective Swap Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis point spread on variable interest rate (as a percent) | 0.50% | ||||||||||
Mortgages collateralized by net lease assets | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 670,872,000 | $ 670,872,000 | $ 670,872,000 | 208,491,000 | |||||||
Weighted average interest rate (as a percent) | 4.60% | 4.60% | 4.60% | ||||||||
Mortgages collateralized by net lease assets | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 3.62% | 3.62% | 3.62% | ||||||||
Mortgages collateralized by net lease assets | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 7.26% | 7.26% | 7.26% | ||||||||
Total secured credit facilities and mortgages | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 1,320,872,000 | $ 1,320,872,000 | $ 1,320,872,000 | 932,491,000 | |||||||
5.00% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 770,000,000 | $ 770,000,000 | $ 770,000,000 | 770,000,000 | |||||||
Stated interest rates (as a percent) | 5.00% | 5.00% | 5.00% | ||||||||
4.625% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | 400,000,000 | |||||||
Stated interest rates (as a percent) | 4.625% | 4.625% | 4.625% | 4.625% | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
6.50% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | 275,000,000 | |||||||
Stated interest rates (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||
6.00% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 375,000,000 | $ 375,000,000 | $ 375,000,000 | 375,000,000 | |||||||
Stated interest rates (as a percent) | 6.00% | 6.00% | 6.00% | ||||||||
5.25% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | 400,000,000 | |||||||
Stated interest rates (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||
3.125% senior convertible notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 287,500,000 | $ 287,500,000 | $ 287,500,000 | 287,500,000 | |||||||
Total debt obligations, net | $ 259,600,000 | $ 259,600,000 | $ 259,600,000 | ||||||||
Stated interest rates (as a percent) | 3.125% | 3.125% | 3.125% | 3.125% | 3.125% | ||||||
Convertible debt, conversion ratio (in shares per par value) | 64.36 | ||||||||||
Convertible debt, conversion price (in dollars per share) | $ 15.54 | $ 15.54 | $ 15.54 | ||||||||
Liability component of convertible debt | $ 221,800,000 | $ 34,000,000 | |||||||||
Carrying value of equity component of convertible debt | 22,500,000 | 3,400,000 | |||||||||
Debt instrument, face amount | $ 250,000,000 | $ 37,500,000 | |||||||||
Debt instrument, unamortized discount | $ 22,900,000 | $ 22,900,000 | $ 22,900,000 | ||||||||
Interest expense, debt | 2,200,000 | 4,500,000 | |||||||||
Amortization of debt discount | $ 1,200,000 | $ 2,300,000 | |||||||||
Effective interest rate | 5.20% | 5.20% | 5.20% | ||||||||
Unsecured Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | $ 2,507,500,000 | $ 2,507,500,000 | $ 2,507,500,000 | 2,507,500,000 | |||||||
Trust preferred securities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations | 100,000,000 | 100,000,000 | $ 100,000,000 | $ 100,000,000 | |||||||
Basis point spread on variable interest rate (as a percent) | 1.50% | ||||||||||
Subsequent Event | 5.00% senior notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rates (as a percent) | 5.00% | ||||||||||
Redemption of senior debt | $ 273,000,000 | ||||||||||
Net lease venture | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt obligations, net | $ 464,700,000 | $ 464,700,000 | $ 464,700,000 |
Debt Obligations, net (Future S
Debt Obligations, net (Future Scheduled Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Maturities of Long-term Debt [Abstract] | ||
2018 (remaining six months) | $ 90,186 | |
2,019 | 771,054 | |
2,020 | 400,000 | |
2,021 | 544,647 | |
2,022 | 1,120,492 | |
Thereafter | 1,001,993 | |
Total principal maturities | 3,928,372 | $ 3,539,991 |
Unamortized discounts and deferred financing costs, net | (58,796) | (63,591) |
Total debt obligations, net | 3,869,576 | $ 3,476,400 |
Unsecured Debt | ||
Maturities of Long-term Debt [Abstract] | ||
2018 (remaining six months) | 0 | |
2,019 | 770,000 | |
2,020 | 400,000 | |
2,021 | 275,000 | |
2,022 | 1,062,500 | |
Thereafter | 100,000 | |
Total principal maturities | 2,607,500 | |
Unamortized discounts and deferred financing costs, net | (48,784) | |
Total debt obligations, net | 2,558,716 | |
Secured Debt | ||
Maturities of Long-term Debt [Abstract] | ||
2018 (remaining six months) | 90,186 | |
2,019 | 1,054 | |
2,020 | 0 | |
2,021 | 269,647 | |
2,022 | 57,992 | |
Thereafter | 901,993 | |
Total principal maturities | 1,320,872 | |
Unamortized discounts and deferred financing costs, net | (10,012) | |
Total debt obligations, net | $ 1,310,860 |
Debt Obligations, net (Secured
Debt Obligations, net (Secured Credit Facility Narrative) (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($)property | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Aug. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||
Loss on early extinguishment of debt, net | $ 2,164,000 | $ 3,315,000 | $ 2,536,000 | $ 3,525,000 | ||||||
2017 Secured Financing | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, face amount | $ 227,000,000 | $ 227,000,000 | $ 227,000,000 | |||||||
Stated interest rates (as a percent) | 3.795% | |||||||||
Number of properties collateralizing loan | property | 12 | |||||||||
Deferred financing costs | $ 7,300,000 | |||||||||
2016 Senior Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, face amount | $ 650,000,000 | $ 400,000,000 | 650,000,000 | $ 650,000,000 | $ 500,000,000 | $ 450,000,000 | ||||
Percentage of par credit facilities were issued at | 99.00% | |||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | |||||||||
Required quarterly principal payment (as a percent) | 0.25% | |||||||||
2016 Senior Term Loan | Other Expense | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Loss on early extinguishment of debt, net | 2,200,000 | $ 2,500,000 | ||||||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis point spread on variable interest rate (as a percent) | 2.75% | 3.00% | 2.75% | |||||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis point spread on variable interest rate (as a percent) | 0.75% | |||||||||
2016 Senior Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis point spread on variable interest rate (as a percent) | 1.75% | |||||||||
2015 $325 million Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 325,000,000 | $ 325,000,000 | 325,000,000 | $ 325,000,000 | $ 250,000,000 | |||||
Converted term loan, term | 1 year | |||||||||
Repayments of credit facility | $ 325,000,000 | |||||||||
2015 $325 million Revolving Credit Facility | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Commitment fee percentage | 0.30% | |||||||||
2015 $325 million Revolving Credit Facility | Maximum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Commitment fee percentage | 0.50% | |||||||||
2015 $325 million Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis point spread on variable interest rate (as a percent) | 2.50% | |||||||||
2015 $325 million Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis point spread on variable interest rate (as a percent) | 1.00% | |||||||||
Safety, Income and Growth, Inc. | 2017 Secured Financing | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Equity capitalization amount, at least | 500,000,000 | 500,000,000 | $ 500,000,000 | |||||||
Net worth, at least | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Debt Obligations, net (Unsecure
Debt Obligations, net (Unsecured Notes Narrative) (Details) - USD ($) | 1 Months Ended | ||
Sep. 30, 2017 | Jun. 30, 2018 | Oct. 31, 2017 | |
4.625% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Stated interest rates (as a percent) | 4.625% | 4.625% | |
5.25% senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Stated interest rates (as a percent) | 5.25% | 5.25% | |
3.125% senior convertible notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 250,000,000 | $ 37,500,000 | |
Stated interest rates (as a percent) | 3.125% | 3.125% | 3.125% |
Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Deferred financing costs | $ 18,600,000 | ||
Unsecured Notes 4.0% Senior Notes Due November 2017 | |||
Debt Instrument [Line Items] | |||
Stated interest rates (as a percent) | 4.00% | ||
Extinguishment of debt, amount | $ 550,000,000 | ||
Unsecured Notes 7.125% Senior Notes Due February 2018 | |||
Debt Instrument [Line Items] | |||
Stated interest rates (as a percent) | 7.125% | ||
Extinguishment of debt, amount | $ 300,000,000 | ||
Unsecured Notes 4.875% Senior Notes Due July 2018 | |||
Debt Instrument [Line Items] | |||
Stated interest rates (as a percent) | 4.875% | ||
Extinguishment of debt, amount | $ 300,000,000 |
Debt Obligations, net (Encumber
Debt Obligations, net (Encumbered/Unencumbered Assets) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||||
Real estate, net | $ 1,914,999,000 | $ 1,282,031,000 | ||
Real estate available and held for sale | 37,597,000 | 68,588,000 | ||
Land and development, net | 641,627,000 | 860,311,000 | ||
Loans receivable and other lending investments, net | 1,052,872,000 | 1,300,655,000 | ||
Other investments | 293,017,000 | 321,241,000 | ||
Cash and other assets | 1,418,055,000 | 898,252,000 | ||
Total assets | 5,358,167,000 | 4,731,078,000 | ||
Carrying amount of assets held by entities pledged as collateral | 423,600,000 | |||
Loans receivable, net | 934,507,000 | 1,211,079,000 | ||
Loan participations payable, net | ||||
Debt Instrument [Line Items] | ||||
Loans receivable, net | 14,700,000 | 102,300,000 | ||
Collectively Evaluated for Impairment | ||||
Debt Instrument [Line Items] | ||||
General reserves for loan losses | 14,100,000 | 17,500,000 | ||
Collateral Assets | ||||
Debt Instrument [Line Items] | ||||
Real estate, net | 1,583,330,000 | 795,321,000 | ||
Real estate available and held for sale | 0 | 20,069,000 | ||
Land and development, net | 10,100,000 | 25,100,000 | ||
Loans receivable and other lending investments, net | 523,425,000 | 194,529,000 | ||
Other investments | 0 | 0 | ||
Cash and other assets | 0 | 0 | ||
Total assets | 2,116,855,000 | 1,035,019,000 | ||
Non-Collateral Assets | ||||
Debt Instrument [Line Items] | ||||
Real estate, net | 331,669,000 | 486,710,000 | ||
Real estate available and held for sale | 37,597,000 | 48,519,000 | ||
Land and development, net | 631,527,000 | 835,211,000 | ||
Loans receivable and other lending investments, net | 528,812,000 | 1,021,340,000 | ||
Other investments | 293,017,000 | 321,241,000 | ||
Cash and other assets | 1,418,055,000 | 898,252,000 | ||
Total assets | 3,240,677,000 | $ 3,611,273,000 | ||
2015 $325 million Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 325,000,000 | $ 325,000,000 | $ 250,000,000 |
Debt Obligations, net (Debt Cov
Debt Obligations, net (Debt Covenants) (Details) | Jun. 30, 2018 |
Unsecured Credit Facilities | |
Debt Instrument [Line Items] | |
Minimum ratio of unencumbered assets to unsecured indebtedness (at least) | 1.2 |
Debt instrument covenant multiple of minimum fixed charges on outstanding borrowings | 1.5 |
2016 Senior Term Loan | |
Debt Instrument [Line Items] | |
Multiple of the minimum collateral coverage on outstanding borrowings (at least) | 1.25 |
2015 $325 Million Secured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Debt instrument covenant multiple of minimum fixed charges on outstanding borrowings | 1.5 |
Multiple of the minimum collateral coverage on outstanding borrowings (at least) | 1.5 |
Commitments and Contingencies75
Commitments and Contingencies (Unfunded Commitments) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Other Commitments [Line Items] | |
Percentage of Capital Committed that May be Drawn Down | 100.00% |
Performance-Based Commitments | $ 530,143 |
Strategic Investments | 9,322 |
Total | 539,465 |
Loans and Other Lending Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 505,345 |
Strategic Investments | 0 |
Total | 505,345 |
Real Estate | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 9,774 |
Strategic Investments | 0 |
Total | 9,774 |
Other Investments | |
Other Commitments [Line Items] | |
Performance-Based Commitments | 15,024 |
Strategic Investments | 9,322 |
Total | 24,346 |
Loan participations, not the obligation of the Company | |
Other Commitments [Line Items] | |
Performance-Based Commitments | $ 35,100 |
Derivatives (Classification on
Derivatives (Classification on Consolidated Balance Sheets) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Derivatives, Fair Value [Line Items] | |
Cash flow hedge to be reclassified over next 12 months | $ 400 |
Designated as hedge | |
Derivatives, Fair Value [Line Items] | |
Derivative assets | 8,120 |
Derivative liabilities | (1,150) |
Interest rate swaps | Designated as hedge | Other assets | |
Derivatives, Fair Value [Line Items] | |
Derivative assets | 8,120 |
Interest rate swaps | Designated as hedge | Other liabilities | |
Derivatives, Fair Value [Line Items] | |
Derivative liabilities | $ (1,150) |
Derivatives (Classification o77
Derivatives (Classification on the Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings from equity method investments | Interest rate swaps | Designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | $ 1,157 | $ (93) | $ 3,508 | $ (15) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | 81 | (62) | 90 | (150) |
Earnings from equity method investments | Interest rate cap | Designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (9) | (14) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | (9) | (14) | ||
Earnings from equity method investments | Foreign exchange contracts | Designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (70) | (369) | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | 0 | 0 | ||
Interest Expense | Interest rate swaps | Designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income | (1,150) | (44) | (1,150) | 424 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings | 0 | 384 | 0 | 355 |
Other Expense | Interest rate cap | Not designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Income | 0 | (41) | 0 | 6 |
Other Expense | Foreign exchange contracts | Not designated as hedge | ||||
Derivative financial instruments on consolidated statements of operations | ||||
Amount of Gain (Loss) Recognized in Income | $ 0 | $ (645) | $ 0 | $ (769) |
Derivatives (Interest Rate Hedg
Derivatives (Interest Rate Hedges) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain (loss) recognized in accumulated other comprehensive income | $ 0.4 |
Equity (Preferred Stock) (Detai
Equity (Preferred Stock) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Preferred Stock | |||
Shares Issued and Outstanding (in shares) | 16,200,000 | 16,200,000 | |
Carrying value of preferred stock | $ 476,000,000 | $ 476,000,000 | |
Number of days in year used in the computation of preferred stock dividends for any partial dividend period | 360 days | 360 days | |
Number of months used in the computation of preferred stock dividends for any partial dividend period | 12 months | 12 months | |
Number of days in month, dividends computation of dividends payable for any partial dividend period | 30 days | 30 days | |
Capital gains distribution (as a percent) | 100.00% | ||
Unrecaptured Section 1250 gain (s a percent) | 27.90% | ||
Long term capital gain (as a percent) | 72.10% | ||
Amount of preferred dividends in arrears | $ 0 | ||
Shares issued upon conversion | 3.9087 | ||
Maximum | |||
Preferred Stock | |||
Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date | 30 days | 30 days | |
Minimum | |||
Preferred Stock | |||
Number of days prior to dividend payment date that Board of Directors may elect to designate as the payment date | 10 days | 10 days | |
Series D | |||
Preferred Stock | |||
Shares Issued and Outstanding (in shares) | 4,000,000 | 4,000,000 | |
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | |
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | |
Rate per Annum | 8.00% | 8.00% | |
Equivalent to Fixed Annual Rate (in dollars per share) | $ 2 | $ 2 | |
Carrying value of preferred stock | $ 89,041,000 | $ 89,041,000 | |
Dividends declared and paid | $ 4,000,000 | $ 4,000,000 | |
Series G | |||
Preferred Stock | |||
Shares Issued and Outstanding (in shares) | 3,200,000 | 3,200,000 | |
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | |
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | |
Rate per Annum | 7.65% | 7.65% | |
Equivalent to Fixed Annual Rate (in dollars per share) | $ 1.91 | $ 1.91 | |
Carrying value of preferred stock | $ 72,664,000 | $ 72,664,000 | |
Dividends declared and paid | $ 3,100,000 | 3,100,000 | |
Series I | |||
Preferred Stock | |||
Shares Issued and Outstanding (in shares) | 5,000,000 | 5,000,000 | |
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | |
Liquidation Preference (in dollars per share) | $ 25 | $ 25 | |
Rate per Annum | 7.50% | 7.50% | |
Equivalent to Fixed Annual Rate (in dollars per share) | $ 1.88 | $ 1.88 | |
Carrying value of preferred stock | $ 120,785,000 | $ 120,785,000 | |
Dividends declared and paid | $ 4,700,000 | 4,700,000 | |
Series J | |||
Preferred Stock | |||
Shares Issued and Outstanding (in shares) | 4,000,000 | 4,000,000 | |
Par Value (in dollars per share) | $ 0.001 | $ 0.001 | |
Liquidation Preference (in dollars per share) | $ 50 | $ 50 | |
Rate per Annum | 4.50% | 4.50% | |
Equivalent to Fixed Annual Rate (in dollars per share) | $ 2.25 | $ 2.25 | |
Carrying value of preferred stock | $ 193,510,000 | $ 193,510,000 | |
Dividends declared and paid | $ 4,500,000 | 4,500,000 | |
Conversion price per share (in dollars per share) | $ 12.79 | ||
Series E | |||
Preferred Stock | |||
Dividends declared and paid | 5,500,000 | ||
Series F | |||
Preferred Stock | |||
Dividends declared and paid | $ 3,900,000 | ||
Series G and Series I | |||
Preferred Stock | |||
Redemption price as a percentage of liquidation preference | 100.00% |
Equity (Dividends) (Details)
Equity (Dividends) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Dividends [Abstract] | |||
Minimum percentage of taxable income (excluding net capital gains) to be distributed in order to qualify as REIT | 90.00% | ||
Percentage of taxable income (including net capital gains) to be distributed in order to qualify as REIT | 100.00% | ||
Operating loss carryforwards | $ 588 | $ 948.8 |
Equity (Stock Repurchase Progra
Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2018 | |
Equity [Abstract] | ||
Treasury stock, shares, acquired (in shares) | 0.8 | |
Treasury stock value acquired including acquisition costs | $ 8.3 | |
Treasury stock acquired, average cost per share (in dollars per share) | $ 10.22 | |
Available repurchase of common stock, authorized amount (up to) | $ 41.7 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accumulated other comprehensive income (loss) reflected in the Company's shareholders' equity | ||
Unrealized gains on available-for-sale securities | $ 655 | $ 1,335 |
Unrealized gains on cash flow hedges | 1,311 | 707 |
Unrealized losses on cumulative translation adjustment | (4,199) | (4,524) |
Accumulated other comprehensive income (loss) | $ (2,233) | $ (2,482) |
Stock-Based Compensation Plan83
Stock-Based Compensation Plans and Employee Benefits (Stock-Based Compensation) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)pointshares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)point$ / sharesshares | Jun. 30, 2017USD ($)pointshares | Dec. 31, 2017USD ($)pointshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 3,503 | $ 3,915 | $ 12,593 | $ 9,796 | |
Number of Points Outstanding [Roll Forward] | |||||
Accrued expenses | $ | $ 87,734 | $ 87,734 | $ 101,035 | ||
Long-term Incentive Plan 2009 | |||||
Number of Points Outstanding [Roll Forward] | |||||
Shares available for issuance | shares | 2,700,000 | 2,700,000 | |||
2013-2014 Performance Incentive Plan | |||||
Number of Points Outstanding [Roll Forward] | |||||
Points at beginning of period | 86.57 | 92 | 92 | ||
Granted (points) | 0.50 | 5 | |||
Forfeited (points) | (0.15) | (10.43) | |||
Points at end of period | 86.92 | 86.92 | 86.57 | ||
Preferred return hurdle | 9.00% | ||||
Compensation value of total distribution | $ | $ 13,600 | ||||
Cash portion of points distribution | $ | $ 6,800 | ||||
Number of shares issued in points distribution | shares | 595,869 | ||||
Value of shares issued in points distribution | $ | $ 6,800 | ||||
Fair value of shares in points distribution | $ / shares | $ 11.41 | ||||
Number of shares issued, net of tax withholding in points distribution | shares | 328,074 | ||||
2015-2016 Performance Plan | |||||
Number of Points Outstanding [Roll Forward] | |||||
Points at beginning of period | 84.16 | 74.10 | 74.10 | ||
Granted (points) | 0 | 17.88 | |||
Forfeited (points) | (0.89) | (7.82) | |||
Points at end of period | 83.27 | 83.27 | 84.16 | ||
2017-2018 Performance Incentive Plan | |||||
Number of Points Outstanding [Roll Forward] | |||||
Points at beginning of period | 40.97 | 0 | 0 | ||
Granted (points) | 49.08 | 41.68 | |||
Forfeited (points) | (4.56) | (0.71) | |||
Points at end of period | 85.49 | 85.49 | 40.97 | ||
All Performance Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 2,200 | $ 2,900 | $ 10,200 | $ 7,900 | |
Number of Points Outstanding [Roll Forward] | |||||
Accrued expenses | $ | $ 34,300 | $ 34,300 | $ 38,100 | ||
Common Stock Subject to Sales Restriction | Employees | |||||
Number of Points Outstanding [Roll Forward] | |||||
Vested, number of shares | shares | 213,609 | ||||
Restricted shares awarded | shares | 135,503 | ||||
Sale restriction period | 18 months | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Non-vested at beginning of period (in shares) | shares | 282,000 | 290,000 | 290,000 | ||
Granted | shares | 264,000 | 116,000 | |||
Vested | shares | (40,000) | (75,000) | |||
Forfeited | shares | (49,000) | (49,000) | |||
Non-vested at end of period (in shares) | shares | 457,000 | 457,000 | 282,000 | ||
Unrecognized compensation cost | $ | $ 2,900 | $ 2,900 | |||
Weighted-average period to recognize the unrecognized compensation cost | 1 year 11 months 27 days |
Stock-Based Compensation Plan84
Stock-Based Compensation Plans and Employee Benefits (Directors' Awards) (Details) - Directors $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Equity award granted | 67,631 |
Equity award grant date fair value | $ / shares | $ 10.65 |
CSE and Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested, outstanding (in shares) | 236,996 |
Aggregate intrinsic value for directors | $ | $ 2.6 |
Stock-Based Compensation Plan85
Stock-Based Compensation Plans and Employee Benefits (401(k) Plan) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Gross contributions made by the Company | $ 0.1 | $ 0.1 | $ 0.8 | $ 0.8 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||||
Earnings Per Share [Abstract] | |||||||||
Income from continuing operations | $ 3,611 | $ 76,117 | $ 21,589 | $ 47,869 | |||||
Income from sales of real estate | $ 24,500 | 56,895 | [1] | 844 | [1] | 73,943 | [1] | 8,954 | [1] |
Net income attributable to noncontrolling interests | (9,509) | (5,710) | (9,604) | (4,610) | |||||
Preferred dividends | (8,124) | (12,830) | (16,248) | (25,660) | |||||
Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for basic earnings per common share | 42,873 | 58,421 | 69,680 | 26,553 | |||||
Add: Effect of joint venture shares | 0 | 5 | 0 | 9 | |||||
Add: Effect of Series J convertible perpetual preferred stock | 2,250 | 2,250 | 4,500 | 4,500 | |||||
Income from continuing operations attributable to iStar Inc. and allocable to common shareholders for diluted earnings per common share | $ 45,123 | $ 60,676 | $ 74,180 | $ 31,062 | |||||
[1] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Earnings Per Share (Earnings Al
Earnings Per Share (Earnings Allocable to Common Shares) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator for basic earnings per share: | ||||
Income (loss) from continuing operations attributable to iStar Inc. and allocable to common shareholders | $ 42,873 | $ 58,421 | $ 69,680 | $ 26,553 |
Income from discontinued operations | 0 | 173 | 0 | 4,939 |
Gain from discontinued operations | 0 | 123,418 | 0 | 123,418 |
Income tax expense from discontinued operations | 0 | (4,545) | 0 | (4,545) |
Net income allocable to common shareholders | 42,873 | 177,467 | 69,680 | 150,365 |
Numerator for diluted earnings per share: | ||||
Income from continuing operations attributable to iStar Inc. and allocable to common shareholders | 45,123 | 60,676 | 74,180 | 31,062 |
Income from discontinued operations | 0 | 173 | 0 | 4,939 |
Gain from discontinued operations | 0 | 123,418 | 0 | 123,418 |
Income tax expense from discontinued operations | 0 | (4,545) | 0 | (4,545) |
Net income attributable to iStar Inc. and allocable to common shareholders | $ 45,123 | $ 179,722 | $ 74,180 | $ 154,874 |
Denominator for basic and diluted earnings per share: | ||||
Weighted average common shares outstanding for basic earnings per common share (in shares) | 67,932 | 72,142 | 67,922 | 72,104 |
Add: Effect of assumed shares issued under treasury stock method for restricted stock units (in shares) | 127 | 120 | 125 | 119 |
Add: Effect of joint venture shares (in shares) | 0 | 298 | 0 | 298 |
Add: Effect of series J convertible perpetual preferred stock (in shares) | 15,635 | 15,635 | 15,635 | 15,635 |
Weighted average common shares outstanding for diluted earnings per common share (in shares) | 83,694 | 88,195 | 83,682 | 88,156 |
Basic earnings per common share: | ||||
Income from continuing operations attributable to iStar Inc. and allocable to common shareholders (in dollars per share) | $ 0.63 | $ 0.81 | $ 1.03 | $ 0.37 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.07 |
Gain from discontinued operations (in dollars per share) | 0 | 1.71 | 0 | 1.71 |
Income tax expense from discontinued operations (in dollars per share) | 0 | (0.06) | 0 | (0.06) |
Net income attributable to iStar Inc. and allocable to common shareholders (in dollars per share) | 0.63 | 2.46 | 1.03 | 2.09 |
Diluted earnings per common share: | ||||
Income from continuing operations attributable to iStar Inc. and allocable to common shareholders (in dollars per share) | 0.54 | 0.69 | 0.89 | 0.35 |
Income from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.06 |
Gain from discontinued operations (in dollars per share) | 0 | 1.40 | 0 | 1.40 |
Income tax expense from discontinued operations (in dollars per share) | 0 | (0.05) | 0 | (0.05) |
Net income attributable to iStar Inc. and allocable to common shareholders (in dollars per share) | $ 0.54 | $ 2.04 | $ 0.89 | $ 1.76 |
Fair Values (Schedule of Fair V
Fair Values (Schedule of Fair Value Measurement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets and liabilities recorded at fair value | |||
Preferred equity security, face value | $ 100,000 | $ 100,000 | |
Preferred equity security, mandatory redemption period | 5 years | ||
Recurring basis | Quoted market prices in active markets (Level 1) | |||
Assets and liabilities recorded at fair value | |||
Derivative assets | $ 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | $ 0 |
Recurring basis | Significant other observable inputs (Level 2) | |||
Assets and liabilities recorded at fair value | |||
Derivative assets | 8,120 | 8,120 | |
Derivative liabilities | 1,150 | 1,150 | |
Recurring basis | Significant unobservable inputs (Level 3) | |||
Assets and liabilities recorded at fair value | |||
Available-for-sale securities | 21,840 | 21,840 | 22,842 |
Non-recurring basis | Quoted market prices in active markets (Level 1) | |||
Assets and liabilities recorded at fair value | |||
Impaired real estate | 0 | 0 | |
Impaired real estate available and held for sale | 0 | ||
Impaired land and development | 0 | 0 | 0 |
Non-recurring basis | Significant other observable inputs (Level 2) | |||
Assets and liabilities recorded at fair value | |||
Impaired land and development | 0 | 0 | 0 |
Non-recurring basis | Significant unobservable inputs (Level 3) | |||
Assets and liabilities recorded at fair value | |||
Impaired real estate | 5,632 | 5,632 | 12,400 |
Impaired real estate available and held for sale | 800 | ||
Impaired land and development | 8,873 | 8,873 | 21,400 |
Debt security | 77,007 | 77,007 | |
Preferred equity security, fair value | 77,000 | 77,000 | |
Fair Value | Recurring basis | |||
Assets and liabilities recorded at fair value | |||
Derivative assets | 8,120 | 8,120 | |
Derivative liabilities | 1,150 | 1,150 | |
Available-for-sale securities | 21,840 | 21,840 | 22,842 |
Fair Value | Non-recurring basis | |||
Assets and liabilities recorded at fair value | |||
Impaired real estate | 5,632 | 5,632 | 12,400 |
Impaired real estate available and held for sale | 800 | ||
Impaired land and development | $ 8,873 | $ 8,873 | $ 21,400 |
Loans Receivable and Other Lending Investments, Net [Member] | Fair Value | Non-recurring basis | |||
Assets and liabilities recorded at fair value | |||
Discount rate | 7.375% | ||
Land and Land Development Asset | Fair Value | Non-recurring basis | |||
Assets and liabilities recorded at fair value | |||
Discount rate | 6.00% | ||
Estimated sales period | 10 years |
Fair Values (Schedule of Level
Fair Values (Schedule of Level 3 Assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 22,842 | $ 21,666 |
Repayments | (46) | (10) |
Unrealized gains (losses) recorded in other comprehensive income | (956) | 566 |
Ending balance | $ 21,840 | $ 22,222 |
Fair Values (Narrative) (Detail
Fair Values (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Book and estimated fair values of financial instruments | ||
Loans receivable and other lending investments, net | $ 1,052,872 | $ 1,300,655 |
Debt obligations, net | 3,869,576 | 3,476,400 |
Fair Value | ||
Book and estimated fair values of financial instruments | ||
Loans receivable and other lending investments, net | 1,100,000 | 1,300,000 |
Debt obligations, net | $ 3,900,000 | $ 3,700,000 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segments) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segments | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |||||
Segment Reporting [Abstract] | ||||||||||
Number of reportable segments | segments | 4 | |||||||||
Segment profit (loss) | ||||||||||
Operating lease income | $ 44,609 | $ 47,002 | $ 90,407 | $ 94,349 | ||||||
Interest income | 25,212 | 28,645 | 51,909 | 57,703 | ||||||
Other income | 20,823 | 139,510 | 36,142 | 151,374 | ||||||
Land development revenue | 80,927 | 132,710 | 357,356 | 152,760 | ||||||
Earnings (losses) from equity method investments | (7,278) | 5,515 | (3,946) | 11,217 | ||||||
Gain on consolidation of equity method investment | 67,877 | 0 | 67,877 | 0 | ||||||
Income from discontinued operations | 0 | 173 | 0 | 4,939 | ||||||
Gain from discontinued operations | 0 | 123,418 | 0 | 123,418 | ||||||
Income from sales of real estate | $ 24,500 | 56,895 | [1] | 844 | [1] | 73,943 | [1] | 8,954 | [1] | |
Total revenue and other earnings | 289,065 | 477,817 | 673,688 | 604,714 | ||||||
Real estate expense | (37,043) | (34,684) | (73,224) | (70,274) | ||||||
Land development cost of sales | (83,361) | (122,466) | (306,768) | (138,376) | ||||||
Other expense | (3,716) | (16,276) | (4,882) | (18,145) | ||||||
Allocated interest expense | (43,172) | (48,807) | (88,353) | (99,952) | ||||||
Allocated general and administrative | (19,725) | (23,303) | (39,448) | (42,596) | ||||||
Segment profit (loss) | 102,048 | 232,281 | 161,013 | 235,371 | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 18,892 | (600) | 18,037 | (5,528) | ||||||
Impairment of assets | 6,088 | 10,284 | 10,188 | 14,696 | ||||||
Depreciation and amortization | 10,767 | 13,171 | 21,878 | 25,451 | ||||||
Capitalized expenditures | 47,946 | 39,558 | 87,572 | 75,132 | ||||||
Segment assets | ||||||||||
Real estate, net | 1,914,999 | 1,914,999 | 1,914,999 | $ 1,282,031 | ||||||
Real estate available and held for sale | 37,597 | 37,597 | 37,597 | 68,588 | ||||||
Total real estate | 1,952,596 | 1,952,596 | 1,952,596 | 1,350,619 | ||||||
Land and development, net | 641,627 | 641,627 | 641,627 | 860,311 | ||||||
Loans receivable and other lending investments, net | 1,052,872 | 1,052,872 | 1,052,872 | 1,300,655 | ||||||
Other investments | 293,017 | 293,017 | 293,017 | 321,241 | ||||||
Total portfolio assets | 3,940,112 | 3,940,112 | 3,940,112 | 3,832,826 | ||||||
Cash and other assets | 1,418,055 | 1,418,055 | 1,418,055 | 898,252 | ||||||
Total assets | 5,358,167 | 5,358,167 | 5,358,167 | 4,731,078 | ||||||
Stock-based compensation expense | 3,503 | 3,915 | 12,593 | 9,796 | ||||||
Operating Segments | Real Estate Finance | ||||||||||
Segment profit (loss) | ||||||||||
Operating lease income | 0 | 0 | 0 | 0 | ||||||
Interest income | 25,212 | 28,645 | 51,909 | 57,703 | ||||||
Other income | 3,133 | 479 | 3,516 | 556 | ||||||
Land development revenue | 0 | 0 | 0 | 0 | ||||||
Earnings (losses) from equity method investments | 0 | 0 | 0 | 0 | ||||||
Gain on consolidation of equity method investment | 0 | 0 | ||||||||
Income from discontinued operations | 0 | 0 | ||||||||
Gain from discontinued operations | 0 | 0 | ||||||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||||||
Total revenue and other earnings | 28,345 | 29,124 | 55,425 | 58,259 | ||||||
Real estate expense | 0 | 0 | 0 | 0 | ||||||
Land development cost of sales | 0 | 0 | 0 | 0 | ||||||
Other expense | (290) | (399) | (690) | (1,004) | ||||||
Allocated interest expense | (10,648) | (10,508) | (22,413) | (22,396) | ||||||
Allocated general and administrative | (3,852) | (4,691) | (7,821) | (8,287) | ||||||
Segment profit (loss) | 13,555 | 13,526 | 24,501 | 26,572 | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 18,892 | (600) | 18,037 | (5,528) | ||||||
Impairment of assets | 0 | 0 | 0 | 0 | ||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Capitalized expenditures | 0 | 0 | 0 | 0 | ||||||
Segment assets | ||||||||||
Real estate, net | 0 | 0 | 0 | 0 | ||||||
Real estate available and held for sale | 0 | 0 | 0 | 0 | ||||||
Total real estate | 0 | 0 | 0 | 0 | ||||||
Land and development, net | 0 | 0 | 0 | 0 | ||||||
Loans receivable and other lending investments, net | 1,052,872 | 1,052,872 | 1,052,872 | 1,300,655 | ||||||
Other investments | 0 | 0 | 0 | 0 | ||||||
Total portfolio assets | 1,052,872 | 1,052,872 | 1,052,872 | 1,300,655 | ||||||
Operating Segments | Net Lease | ||||||||||
Segment profit (loss) | ||||||||||
Operating lease income | 29,310 | 30,852 | 59,036 | 62,104 | ||||||
Interest income | 0 | 0 | 0 | 0 | ||||||
Other income | 698 | 550 | 1,746 | 1,056 | ||||||
Land development revenue | 0 | 0 | 0 | 0 | ||||||
Earnings (losses) from equity method investments | 2,694 | 1,080 | 6,252 | 2,062 | ||||||
Gain on consolidation of equity method investment | 67,877 | 67,877 | ||||||||
Income from discontinued operations | 173 | 4,939 | ||||||||
Gain from discontinued operations | 123,418 | 123,418 | ||||||||
Income from sales of real estate | 24,493 | 0 | 24,907 | 6,212 | ||||||
Total revenue and other earnings | 125,072 | 156,073 | 159,818 | 199,791 | ||||||
Real estate expense | (3,433) | (4,064) | (7,411) | (8,640) | ||||||
Land development cost of sales | 0 | 0 | 0 | 0 | ||||||
Other expense | 0 | 0 | 0 | 0 | ||||||
Allocated interest expense | (13,591) | (13,669) | (27,792) | (29,404) | ||||||
Allocated general and administrative | (4,853) | (5,921) | (9,439) | (10,563) | ||||||
Segment profit (loss) | 103,195 | 132,419 | 115,176 | 151,184 | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||||
Impairment of assets | 4,342 | 219 | 4,342 | 219 | ||||||
Depreciation and amortization | 6,341 | 7,400 | 12,652 | 15,039 | ||||||
Capitalized expenditures | 720 | 917 | 1,198 | 1,687 | ||||||
Segment assets | ||||||||||
Real estate, net | 1,532,589 | 1,532,589 | 1,532,589 | 815,783 | ||||||
Real estate available and held for sale | 0 | 0 | 0 | 0 | ||||||
Total real estate | 1,532,589 | 1,532,589 | 1,532,589 | 815,783 | ||||||
Land and development, net | 0 | 0 | 0 | 0 | ||||||
Loans receivable and other lending investments, net | 0 | 0 | 0 | 0 | ||||||
Other investments | 147,512 | 147,512 | 147,512 | 205,007 | ||||||
Total portfolio assets | 1,680,101 | 1,680,101 | 1,680,101 | 1,020,790 | ||||||
Operating Segments | Operating Properties | ||||||||||
Segment profit (loss) | ||||||||||
Operating lease income | 15,199 | 15,940 | 31,016 | 31,929 | ||||||
Interest income | 0 | 0 | 0 | 0 | ||||||
Other income | 13,351 | 13,333 | 25,496 | 23,688 | ||||||
Land development revenue | 0 | 0 | 0 | 0 | ||||||
Earnings (losses) from equity method investments | (1,316) | 469 | (2,591) | 1,101 | ||||||
Gain on consolidation of equity method investment | 0 | 0 | ||||||||
Income from discontinued operations | 0 | 0 | ||||||||
Gain from discontinued operations | 0 | 0 | ||||||||
Income from sales of real estate | 32,402 | 844 | 49,036 | 2,742 | ||||||
Total revenue and other earnings | 59,636 | 30,586 | 102,957 | 59,460 | ||||||
Real estate expense | (23,818) | (22,653) | (45,443) | (44,171) | ||||||
Land development cost of sales | 0 | 0 | 0 | 0 | ||||||
Other expense | 0 | 0 | 0 | 0 | ||||||
Allocated interest expense | (4,578) | (5,006) | (10,106) | (10,612) | ||||||
Allocated general and administrative | (1,975) | (2,364) | (4,018) | (4,119) | ||||||
Segment profit (loss) | 29,265 | 563 | 43,390 | 558 | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||||
Impairment of assets | 446 | 0 | 4,546 | 4,413 | ||||||
Depreciation and amortization | 3,738 | 4,923 | 7,664 | 8,962 | ||||||
Capitalized expenditures | 4,623 | 8,355 | 12,324 | 16,566 | ||||||
Segment assets | ||||||||||
Real estate, net | 382,410 | 382,410 | 382,410 | 466,248 | ||||||
Real estate available and held for sale | 37,597 | 37,597 | 37,597 | 68,588 | ||||||
Total real estate | 420,007 | 420,007 | 420,007 | 534,836 | ||||||
Land and development, net | 0 | 0 | 0 | 0 | ||||||
Loans receivable and other lending investments, net | 0 | 0 | 0 | 0 | ||||||
Other investments | 62,024 | 62,024 | 62,024 | 38,761 | ||||||
Total portfolio assets | 482,031 | 482,031 | 482,031 | 573,597 | ||||||
Operating Segments | Land and Development | ||||||||||
Segment profit (loss) | ||||||||||
Operating lease income | 100 | 210 | 355 | 316 | ||||||
Interest income | 0 | 0 | 0 | 0 | ||||||
Other income | 1,313 | 123,871 | 1,784 | 124,256 | ||||||
Land development revenue | 80,927 | 132,710 | 357,356 | 152,760 | ||||||
Earnings (losses) from equity method investments | 1,023 | 3,606 | 2,566 | 7,448 | ||||||
Gain on consolidation of equity method investment | 0 | 0 | ||||||||
Income from discontinued operations | 0 | 0 | ||||||||
Gain from discontinued operations | 0 | 0 | ||||||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||||||
Total revenue and other earnings | 83,363 | 260,397 | 362,061 | 284,780 | ||||||
Real estate expense | (9,792) | (7,967) | (20,370) | (17,463) | ||||||
Land development cost of sales | (83,361) | (122,466) | (306,768) | (138,376) | ||||||
Other expense | 0 | 0 | 0 | 0 | ||||||
Allocated interest expense | (5,308) | (7,122) | (11,781) | (15,240) | ||||||
Allocated general and administrative | (3,747) | (5,004) | (7,552) | (8,930) | ||||||
Segment profit (loss) | (18,845) | 117,838 | 15,590 | 104,771 | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||||
Impairment of assets | 1,300 | 10,065 | 1,300 | 10,064 | ||||||
Depreciation and amortization | 318 | 521 | 832 | 791 | ||||||
Capitalized expenditures | 42,603 | 30,286 | 74,050 | 56,879 | ||||||
Segment assets | ||||||||||
Real estate, net | 0 | 0 | 0 | 0 | ||||||
Real estate available and held for sale | 0 | 0 | 0 | 0 | ||||||
Total real estate | 0 | 0 | 0 | 0 | ||||||
Land and development, net | 641,627 | 641,627 | 641,627 | 860,311 | ||||||
Loans receivable and other lending investments, net | 0 | 0 | 0 | 0 | ||||||
Other investments | 76,693 | 76,693 | 76,693 | 63,855 | ||||||
Total portfolio assets | 718,320 | 718,320 | 718,320 | 924,166 | ||||||
Corporate/Other | ||||||||||
Segment profit (loss) | ||||||||||
Operating lease income | 0 | 0 | 0 | 0 | ||||||
Interest income | 0 | 0 | 0 | 0 | ||||||
Other income | 2,328 | 1,277 | 3,600 | 1,818 | ||||||
Land development revenue | 0 | 0 | 0 | 0 | ||||||
Earnings (losses) from equity method investments | (9,679) | 360 | (10,173) | 606 | ||||||
Gain on consolidation of equity method investment | 0 | 0 | ||||||||
Income from discontinued operations | 0 | 0 | ||||||||
Gain from discontinued operations | 0 | 0 | ||||||||
Income from sales of real estate | 0 | 0 | 0 | 0 | ||||||
Total revenue and other earnings | (7,351) | 1,637 | (6,573) | 2,424 | ||||||
Real estate expense | 0 | 0 | 0 | 0 | ||||||
Land development cost of sales | 0 | 0 | 0 | 0 | ||||||
Other expense | (3,426) | (15,877) | (4,192) | (17,141) | ||||||
Allocated interest expense | (9,047) | (12,502) | (16,261) | (22,300) | ||||||
Allocated general and administrative | (5,298) | (5,323) | (10,618) | (10,697) | ||||||
Segment profit (loss) | (25,122) | (32,065) | (37,644) | (47,714) | ||||||
Other significant items: | ||||||||||
Provision for loan losses | 0 | 0 | 0 | 0 | ||||||
Impairment of assets | 0 | 0 | 0 | 0 | ||||||
Depreciation and amortization | 370 | 327 | 730 | 659 | ||||||
Capitalized expenditures | 0 | $ 0 | 0 | $ 0 | ||||||
Segment assets | ||||||||||
Real estate, net | 0 | 0 | 0 | 0 | ||||||
Real estate available and held for sale | 0 | 0 | 0 | 0 | ||||||
Total real estate | 0 | 0 | 0 | 0 | ||||||
Land and development, net | 0 | 0 | 0 | 0 | ||||||
Loans receivable and other lending investments, net | 0 | 0 | 0 | 0 | ||||||
Other investments | 6,788 | 6,788 | 6,788 | 13,618 | ||||||
Total portfolio assets | $ 6,788 | $ 6,788 | $ 6,788 | $ 13,618 | ||||||
[1] | Income from sales of real estate represents gains from sales of real estate that do not qualify as discontinued operations |
Segment Reporting (Reconciliati
Segment Reporting (Reconciliation of Segment Profit to Net Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of segment profit (loss) to income (loss) from continuing operations | ||||
Segment profit | $ 102,048 | $ 232,281 | $ 161,013 | $ 235,371 |
Add: (Provision for) recovery of loan losses | (18,892) | 600 | (18,037) | 5,528 |
Less: Impairment of assets | (6,088) | (10,284) | (10,188) | (14,696) |
Less: Stock-based compensation expense | (3,503) | (3,915) | (12,593) | (9,796) |
Less: Depreciation and amortization | (10,767) | (13,171) | (21,878) | (25,451) |
Less: Income tax expense | (128) | (1,644) | (249) | (2,251) |
Less: Income tax expense from discontinued operations | 0 | (4,545) | 0 | (4,545) |
Less: Loss on early extinguishment of debt, net | (2,164) | (3,315) | (2,536) | (3,525) |
Net income | $ 60,506 | $ 196,007 | $ 95,532 | $ 180,635 |