Equity Investments

9 Months Ended

Sep. 30, 2026

Equity Investments

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 Nine Months Ended
		September 30,			December 31,			September 30,						September 30,
		2026			2025			2026			2025			2026			2025
Equity investment
425 Park Avenue		$	140,901		$	139,592		$	912		$	907		$	2,740		$	2,679
32 Old Slip			70,864			67,865			990			993			2,999			3,747
Ground Lease Plus Fund⁽¹⁾			31,000			30,787			441			487			(517)			1,301
Leasehold Loan Fund⁽²⁾			53,383			42,606			1,174			2,267			6,191			6,831
Total		$	296,148		$	280,850		$	3,517		$	4,654		$	11,413		$	14,558

(1)

As of September 30, 2026, the Company has a basis difference of $11.3 million in the Ground Lease Plus Fund. During the three and nine months ended September 30, 2026, $0.5 million and $1.1 million, respectively, of the basis difference was amortized as an increase to earnings from equity method investments. During the three and nine months ended September 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 September 30, 2025, $1.0 million of the basis difference was amortized as an increase to earnings from equity method investments. During the nine months ended September 30, 2026 and 2025, $2.7 million and $2.4 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.

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 and in August 2026 the loan commitment was further reduced to $27.6 million, which was fully funded as of September 30, 2026.

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 and in August 2026 the loan commitment was further reduced to $45.0 million, which was fully funded as of September 30, 2026.

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 September 30, 2026, the Leasehold Loan Fund funded $26.9 million of the commitment.