Equity Investments

6 Months Ended

Jun. 30, 2026

Investments, All Other Investments [Abstract]

Equity Investments

Note 8—Equity Investments

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


								Earnings from						Earnings from
		Carrying Value						Equity Method Investments⁽¹⁾						Equity Method Investments⁽¹⁾
		as of						For The Three Months Ended						For the Six Months Ended
		June 30,			December 31,			June 30,						June 30,
		2026			2025			2026			2025			2026			2025
Equity investment
425 Park Avenue		$	140,467		$	139,592		$	918		$	887		$	1,827		$	1,772
32 Old Slip			69,874			67,865			996			1,323			2,009			2,754
Ground Lease Plus Fund⁽¹⁾			30,559			30,787			(630)			330			(958)			814
Leasehold Loan Fund⁽²⁾			50,866			42,606			2,577			2,372			5,018			4,564
Total		$	291,766		$	280,850		$	3,861		$	4,912		$	7,896		$	9,904

(1)

As of June 30, 2026, the Company has a basis difference of $11.8 million in the Ground Lease Plus Fund. During both the three and six months ended June 30, 2026, $0.6 million of the basis difference was amortized as an increase to earnings from equity method investments. During the three and six months ended June 30, 2025, $0.1 million and $0.2 million, respectively, of the basis difference was amortized as a decrease to earnings from equity method investments.

(2)

The Company had a basis difference in the Leasehold Loan Fund that was amortized using the effective interest method. During the three months ended June 30, 2026 and 2025, $1.4 million and $0.7 million, respectively, of the basis difference was amortized as an increase to earnings from equity method investments. During the six months ended June 30, 2026 and 2025, $2.7 million and $1.4 million, respectively, of the basis difference was amortized as an increase to earnings from equity method investments.

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

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

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

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

In February 2022, the Leasehold Loan Fund committed to provide a $130.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a life science

property. In August 2025, the loan commitment was reduced to $30.0 million. As of June 30, 2026, the Leasehold Loan Fund funded $27.6 million of the commitment.

In June 2022, the Leasehold Loan Fund committed to provide a $105.0 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s recapitalization of a mixed-use property. In July 2025, the loan commitment was reduced to $55.5 million. As of June 30, 2026, the Leasehold Loan Fund funded $45.0 million of the commitment.

In July 2024, the Leasehold Loan Fund committed to provide a $31.5 million loan to the ground lessee of a Ground Lease originated by the Company. The loan was for the Ground Lease tenant’s construction of a student housing property. As of June 30, 2026, the Leasehold Loan Fund funded $22.4 million of the commitment.