| Schedule of Segment Results |
The Company’s income statement segment information is as follows for the three and six months ended June 30, 2026 ($ in thousands): | | | | | | | | | | | | Ground | | Hotel | | | Three Months Ended June 30, 2026 | | Leases | | Operations | | Total | Revenues: | | | | | | | | | | Interest income from sales-type leases | | $ | 76,902 | | $ | — | | $ | 76,902 | Operating lease income | | | 15,806 | | | — | | | 15,806 | Hotel revenues | | | — | | | 15,937 | | | 15,937 | Interest income | | | 3,291 | | | — | | | 3,291 | Other income | | | 2,710 | | | — | | | 2,710 | Total revenues | | | 98,709 | | | 15,937 | | | 114,646 | Costs and expenses and other items: | | | | | | | | | | Interest expense - cash | | | (47,948) | | | — | | | | Interest expense - non-cash | | | (7,240) | | | — | | | | Hotel expenses | | | — | | | (13,932) | | | | Depreciation and amortization | | | (1,236) | | | (613) | | | | General and administrative - public company costs(1) | | | (10,954) | | | — | | | | General and administrative - stock-based compensation(1) | | | (3,389) | | | — | | | | (Provision for) recovery of credit losses | | | (270) | | | — | | | | Earnings (losses) from equity method investments | | | 3,861 | | | — | | | | Other segment items(2) | | | (561) | | | (247) | | | | Segment profit (loss) | | $ | 30,972 | | $ | 1,145 | | $ | 32,117 | | | | | | | | | | | Six Months Ended June 30, 2026 | | | | | | | | | | Revenues: | | | | | | | | | | Interest income from sales-type leases | | $ | 151,936 | | $ | — | | $ | 151,936 | Operating lease income | | | 35,962 | | | — | | | 35,962 | Hotel revenues | | | — | | | 25,801 | | | 25,801 | Interest income | | | 6,400 | | | — | | | 6,400 | Other income | | | 5,401 | | | — | | | 5,401 | Total revenues | | | 199,699 | | | 25,801 | | | 225,500 | Costs and expenses and other items: | | | | | | | | | | Interest expense - cash | | | (94,339) | | | — | | | | Interest expense - non-cash | | | (14,364) | | | — | | | | Hotel expenses | | | — | | | (26,127) | | | | Depreciation and amortization | | | (2,472) | | | (1,225) | | | | General and administrative - public company costs(1) | | | (22,478) | | | — | | | | General and administrative - stock-based compensation(1) | | | (7,168) | | | — | | | | (Provision for) recovery of credit losses | | | (768) | | | — | | | | Earnings (losses) from equity method investments | | | 7,896 | | | — | | | | Other segment items(2) | | | (2,262) | | | (494) | | | | Segment profit (loss) | | $ | 63,744 | | $ | (2,045) | | $ | 61,699 |
| (1) | The CODM also considers management fees earned from Star Holdings (refer to Note 15) in their review of general and administrative expense because many of the Company’s employees spend time and resources performing basic functions for the management of Star Holdings. During the three and six months ended June 30, 2026, the Company earned $1.9 million and $4.0 million, respectively, in management fees from Star Holdings. The management fees are included in “Other income” in the Company’s consolidated statements of operations. |
| (2) | Includes real estate expense and other expenses. |
As of June 30, 2026, approximately $92.8 million of total assets were attributable to the Hotel Operations segment. All other total assets were attributable to the Ground Leases segment.
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