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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________
FORM 10-Q
(Mark One) 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to            
Commission File No. 001-38122
_______________________________________________________________________________
Safehold Inc.
(Exact name of registrant as specified in its charter)
Maryland30-0971238
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
1114 Avenue of the Americas 
39th Floor
New York,NY10036
(Address of principal executive offices)(Zip code)
Registrant's telephone number, including area code: (212) 930-9400
_______________________________________________________________________________
Indicate by check mark whether the registrant: (i) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports); and (ii) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large 
accelerated filer
 Accelerated filer Non-accelerated filer Smaller reporting companyEmerging growth company


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes     No ý
        If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   


Table of Contents
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock SAFE NYSE
As of July 21, 2020, there were 51,109,914 shares, $0.01 par value per share, of Safehold Inc. common stock outstanding.


Table of Contents
TABLE OF CONTENTS
  Page


Table of Contents
PART I. CONSOLIDATED FINANCIAL INFORMATION
Item 1.    Financial Statements
Safehold Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
 As of
 June 30,
2020
December 31,
2019
ASSETS
Real estate
Real estate, at cost$707,381  $687,902  
Less: accumulated depreciation(19,300) (16,286) 
Real estate, net688,081  671,616  
Real estate-related intangible assets, net240,845  242,837  
Total real estate, net and real estate-related intangible assets, net928,926  914,453  
Net investment in sales-type leases1,045,003  984,598  
Ground Lease receivables477,460  397,087  
Equity investments in Ground Leases128,736  127,524  
Cash and cash equivalents96,700  22,704  
Restricted cash42,373  24,078  
Deferred operating lease income receivable75,841  58,303  
Deferred expenses and other assets, net34,324  37,814  
Total assets$2,829,363  $2,566,561  
LIABILITIES AND EQUITY  
Liabilities:  
Accounts payable, accrued expenses and other liabilities$73,825  $43,008  
Real estate-related intangible liabilities, net57,007  57,333  
Debt obligations, net1,460,114  1,372,922  
Total liabilities1,590,946  1,473,263  
Commitments and contingencies (refer to Note 9)
Equity:  
Safehold Inc. shareholders' equity:
Common stock, $0.01 par value, 400,000 shares authorized, 51,110 and 47,782 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
511  478  
Additional paid-in capital1,287,385  1,132,603  
Retained earnings (accumulated deficit)11,454  (2,146) 
Accumulated other comprehensive loss(62,744) (39,123) 
Total Safehold Inc. shareholders' equity1,236,606  1,091,812  
Noncontrolling interests1,811  1,486  
Total equity1,238,417  1,093,298  
Total liabilities and equity$2,829,363  $2,566,561  
_______________________________________________________________________________
Note - Refer to Note 2 for details on the Company's consolidated variable interest entities ("VIEs").

The accompanying notes are an integral part of the consolidated financial statements.
1

Table of Contents
Safehold Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)

 For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2020201920202019
Revenues:
Operating lease income$17,113  $17,196  $37,893  $37,712  
Interest income from sales-type leases19,831  1,880  38,732  2,802  
Other income409  604  893  986  
Total revenues37,353  19,680  77,518  41,500  
Costs and expenses: 
Interest expense16,233  5,986  31,381  10,507  
Real estate expense536  645  1,335  1,457  
Depreciation and amortization2,355  2,343  4,702  4,686  
General and administrative6,369  4,474  11,622  7,456  
Other expense120  290  160  315  
Total costs and expenses25,613  13,738  49,200  24,421  
Income from operations before other items11,740  5,942  28,318  17,079  
Earnings from equity method investments822    1,640    
Net income12,562  5,942  29,958  17,079  
Net income attributable to noncontrolling interests(1)
(48) (1,419) (97) (5,937) 
Net income attributable to Safehold Inc. common shareholders$12,514  $4,523  $29,861  $11,142  
Per common share data: 
Net income  
Basic$0.24  $0.18  $0.60  $0.51  
Diluted$0.24  $0.18  $0.60  $0.51  
Weighted average number of common shares:
Basic 51,084  25,640  49,656  22,001  
Diluted51,093  25,640  49,664  22,001  
_______________________________________________________________________________
(1)For the three and six months ended June 30, 2019, includes $1.4 million and $5.8 million, respectively, of income attributable to the Company's Manager relating to Investor Units it held in the Operating Partnership (refer to Note 11).


The accompanying notes are an integral part of the consolidated financial statements.
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Safehold Inc.
Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(unaudited)

 For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2020201920202019
Net income $12,562  $5,942  $29,958  $17,079  
Other comprehensive income (loss): 
Reclassification of (gains) losses on derivatives into earnings469  (13) 813  (235) 
Unrealized loss on derivatives(1,434) (12,168) (24,434) (23,230) 
Other comprehensive loss(965) (12,181) (23,621) (23,465) 
Comprehensive income (loss)11,597  (6,239) 6,337  (6,386) 
Comprehensive (income) loss attributable to noncontrolling interests(48) (2,336) (97) (2,279) 
Comprehensive income (loss) attributable to Safehold Inc.$11,549  $(8,575) $6,240  $(8,665) 

The accompanying notes are an integral part of the consolidated financial statements.
3


Safehold Inc.
Consolidated Statements of Changes in Equity
(In thousands)
(unaudited)


Common
Stock at
Par
Additional
Paid-In
Capital
Retained
Earnings
(Accumulated Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Equity
Balance as of March 31, 2020$510  $1,283,643  $7,236  $(61,779) $1,628  $1,231,238  
Net income—  —  12,514  —  48  12,562  
Issuance of common stock, net / amortization1  3,742  —  —  145  3,888  
Dividends declared ($0.16224 per share)
—  —  (8,296) —  —  (8,296) 
Change in accumulated other comprehensive income (loss) —  —  —  (965)   (965) 
Distributions to noncontrolling interests—  —  —  —  (10) (10) 
Balance as of June 30, 2020$511  $1,287,385  $11,454  $(62,744) $1,811  $1,238,417  
Balance as of March 31, 2019$183  $372,093  $(4,619) $(10,793) $244,546  $601,410  
Net income—  —  4,523  —  1,419  5,942  
Issuance of common stock / amortization 1  2,640  —  —  90  2,731  
Investor unit conversion (refer to Note 11)125  252,060  —  (6,450) (245,735)   
Dividends declared ($0.156 per share)
—  —  (4,830) —  —  (4,830) 
Change in accumulated other comprehensive income (loss)—  —  —  (13,098) 917  (12,181) 
Distributions to noncontrolling interests—  —  —  —  (8) (8) 
Balance as of June 30, 2019$309  $626,793  $(4,926) $(30,341) $1,229  $593,064  
4


Safehold Inc.
Consolidated Statements of Changes in Equity
(In thousands)
(unaudited)


Common
Stock at
Par
Additional
Paid-In
Capital
Retained
Earnings
(Accumulated Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interests
Total
Equity
Balance as of December 31, 2019$478  $1,132,603  $(2,146) $(39,123) $1,486  $1,093,298  
Net income—  —  29,861  —  97  29,958  
Issuance of common stock, net / amortization33  154,782  —  —  249  155,064  
Dividends declared ($0.31824 per share)
—  —  (16,261) —  —  (16,261) 
Change in accumulated other comprehensive income (loss) —  —  —  (23,621) —  (23,621) 
Distributions to noncontrolling interests—  —  —  —  (21) (21) 
Balance as of June 30, 2020$511  $1,287,385  $11,454  $(62,744) $1,811  $1,238,417  
Balance as of December 31, 2018$183  $370,530  $(8,486) $(6,876) $2,007  $357,358  
Net income—  —  11,142  —  5,937  17,079  
Issuance of common stock / amortization 1  3,575  —  —  174  3,750  
Investor unit conversion (refer to Note 11)125  252,060  —  (6,450) (245,735) —  
Dividends declared ($0.306 per share)
—  —  (7,582) —  —  (7,582) 
Change in accumulated other comprehensive income (loss) —  —  —  (19,807) (3,658) (23,465) 
Contributions from noncontrolling interests net of costs—  628  —  2,792  245,426  248,846  
Distributions to noncontrolling interests—  —  —  —  (2,922) (2,922) 
Balance as of June 30, 2019$309  $626,793  $(4,926) $(30,341) $1,229  $593,064  

The accompanying notes are an integral part of the consolidated financial statements.
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Safehold Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
 For the Six Months
Ended June 30,
20202019
Cash flows from operating activities:  
Net income $29,958  $17,079  
Adjustments to reconcile net income to cash flows from operating activities:  
Depreciation and amortization4,702  4,686  
Stock-based compensation expense1,366  1,318  
Deferred operating lease income(17,538) (17,581) 
Non-cash interest income from sales-type leases(14,162) (916) 
Amortization of real estate-related intangibles, net1,330  1,216  
Earnings from equity method investments(1,640)   
Distributions from operations of equity method investments427    
Amortization of premium, discount and deferred financing costs on debt obligations, net1,097  1,084  
Non-cash management fees6,048  3,051  
Other operating activities1,064  628  
Changes in assets and liabilities: 
Changes in deferred expenses and other assets, net612  722  
Changes in accounts payable, accrued expenses and other liabilities5,512  (12,709) 
Cash flows provided by (used in) operating activities18,776  (1,422) 
Cash flows from investing activities:  
Acquisitions of real estate(20,276) (6,809) 
Origination/acquisition of net investment in sales-type leases and Ground Lease receivables(83,424) (149,018) 
Fundings on Ground Lease receivables(43,192)   
Deposits on Ground Lease investments1,550  (3,200) 
Other investing activities(361) 143  
Cash flows used in investing activities(145,703) (158,884) 
Cash flows from financing activities:  
Proceeds from issuance of common stock150,086    
Proceeds from debt obligations409,600  218,625  
Repayments of debt obligations(317,000) (226,500) 
Payments for deferred financing costs(6,140) (1,631) 
Dividends paid to common shareholders(15,412) (5,489) 
Payment of offering costs(1,919) (761) 
Distributions to noncontrolling interests(21) (2,922) 
Contributions from noncontrolling interests (refer to Note 11)  250,000  
Other financing activities24  (1,962) 
Cash flows provided by financing activities219,218  229,360  
Changes in cash, cash equivalents and restricted cash92,291  69,054  
Cash, cash equivalents and restricted cash at beginning of period46,782  24,425  
Cash, cash equivalents and restricted cash at end of period$139,073  $93,479  
Supplemental disclosure of non-cash investing and financing activity:
Origination of sales-type leases$  $10,194  
Acquisition of real estate551    
Assumption of other liabilities/debt obligations551  10,194  
Investor unit conversion (refer to Note 11)  250,000  
Dividends declared to common shareholders8,296  4,834  
Accrued finance costs305  510  

The accompanying notes are an integral part of the consolidated financial statements.
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Safehold Inc.
Notes to Consolidated Financial Statements
(unaudited)




Note 1—Business and Organization

        Business—Safehold Inc. (the "Company") operates its business through one reportable segment by acquiring, managing and capitalizing ground leases. Ground leases are long-term contracts between the landlord (the Company) and a tenant or leaseholder. The Company believes that it is the first publicly-traded company formed primarily to acquire, own, manage, finance and capitalize ground leases. Ground leases generally represent ownership of the land underlying commercial real estate projects that is net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon ("Ground Leases"). Under a Ground Lease, the tenant is generally responsible for all property operating expenses, such as maintenance, real estate taxes and insurance and is also responsible for development costs and capital expenditures. Ground Leases are typically long-term (base terms ranging from 30 to 99 years, often with tenant renewal options) and have contractual base rent increases (either at a specified percentage or consumer price index ("CPI") based, or both) and sometimes include percentage rent participations.

        The Company intends to target investments in long-term Ground Leases in which: (i) the cost of its Ground Lease represents 30% to 45% of the combined value of the land and buildings and improvements thereon as if there was no Ground Lease on the land ("Combined Property Value"); (ii) the ratio of property net operating income to the Ground Lease payment due the Company ("Ground Rent Coverage") is between 2.0x to 4.5x, and for this purpose the Company uses estimates of the stabilized property net operating income if it doesn't receive current tenant information and for properties under construction or in transition, in each case based on leasing activity at the property and available market information, including leasing activity at comparable properties in the relevant market; and (iii) the Ground Lease contains contractual rent escalation clauses or percentage rent that participates in gross revenues generated by the commercial real estate on the land. A Ground Lease lessor (the Company) typically has the right to regain possession of its land and take ownership of the buildings and improvements thereon upon tenant default and the termination of the Ground Lease on account of such default. The Company believes that the Ground Lease structure provides an opportunity for potential value accretion through the reversion to the Company, as the Ground Lease owner, of the buildings and improvements on the land at the expiration or earlier termination of the lease, for no additional consideration from the Company.

        The Company is managed by SFTY Manager, LLC (the "Manager"), a wholly-owned subsidiary of iStar Inc. ("iStar"), the Company's largest shareholder, pursuant to a management agreement (refer to Note 13). The Company has no employees, as the Manager provides all services to it. The Company draws on the extensive investment origination and sourcing platform of its Manager to actively promote the benefits of the Ground Lease structure to prospective Ground Lease tenants.

        Organization—The Company is a Maryland corporation and completed its initial public offering in June 2017. The Company's common stock is listed on the New York Stock Exchange under the symbol "SAFE." The Company elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes, commencing with the tax year ended December 31, 2017. The Company is structured as an Umbrella Partnership REIT ("UPREIT"). As such, all of the Company's properties are owned through a subsidiary partnership, Safehold Operating Partnership LP (the "Operating Partnership"). As of June 30, 2020, the Company owned 100% of the limited partner interests and a subsidiary of the Company owned 100% of the general partner interests, in the Operating Partnership. The UPREIT structure may afford the Company certain benefits as it seeks to acquire properties from third parties who may want to defer taxes by contributing their Ground Leases to the Company.

Note 2—Basis of Presentation and Principles of Consolidation
Basis of Presentation—The accompanying unaudited condensed 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 and combined financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 (the "2019 Annual Report").
        The preparation of these consolidated 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.

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Safehold Inc.
Notes to Consolidated Financial Statements (Continued)
(unaudited)

        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.

Principles of Consolidation—The consolidated financial statements include the accounts and operations of the Company, its wholly-owned subsidiaries and VIEs for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
         Consolidated VIEs—The Company consolidates VIEs for which it is considered the primary beneficiary. As of June 30, 2020, the total assets of these consolidated VIEs were $60.8 million and total liabilities were $29.6 million. The classifications of these assets are primarily within "Real estate, net," "Real estate-related intangible assets, net" and "Deferred operating lease income receivable" on the Company's consolidated balance sheets. The classifications of liabilities are primarily within "Debt obligations, net" and "Accounts payable, accrued expenses and other liabilities" on the Company's consolidated balance sheets. The liabilities of these VIEs are non-recourse to the Company and can only be satisfied from each VIE's respective assets. The Company has provided no financial support to VIEs that it was not previously contractually required to provide and did not have any unfunded commitments related to consolidated VIEs as of June 30, 2020.

Note 3—Summary of Significant Accounting Policies

        Fair Values—The Company is required to disclose fair value information with regard to its financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practical to estimate fair value. The Financial Accounting Standards Board ("FASB") guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Company determines the estimated fair values of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the Company and the Company’s own assumptions about market participant assumptions. The Company determined the carrying values of its cash and cash equivalents; net investment in sales-type leases; Ground Lease receivables and restricted cash approximated their fair values. The Company determined the fair value of its debt obligations, net as of June 30, 2020 and December 31, 2019 was approximately $1.5 billion and $1.4 billion, respectively, and is classified as Level 3 within the fair value hierarchy.  

Other—The Company is an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and is eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other publicly-traded companies that are not "emerging growth companies," including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002. The Company has elected to utilize the exemption for auditor attestation requirements.
In addition, the JOBS Act provides that an "emerging growth company" can take advantage of the extended transition period provided in the Securities Act of 1933, as amended, for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. However, the Company has chosen to "opt out" of this extended transition period, and as a result, it will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for all public companies that are not emerging growth companies. The Company's decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.
The Company will remain an "emerging growth company" until the earliest to occur of: (i) the last day of the fiscal year during which our total annual revenue equals or exceeds $1.07 billion (subject to adjustment for inflation); (ii) the last day of the fiscal year following the fifth anniversary of the Company's initial public offering; (iii) the date on which the Company has, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (iv) the date on which the Company is deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended.
For the remainder of the Company's significant accounting policies, refer to the Company's 2019 Annual Report.

New Accounting PronouncementsIn 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
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Safehold Inc.
Notes to Consolidated Financial Statements (Continued)
(unaudited)

reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public entities such as the Company that qualify as smaller reporting companies, ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2022. Early adoption is permitted. Management is currently evaluating the impact of ASU 2016-13 on the Company’s consolidated financial statements.
In May 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ("ASU 2019-04") to clarify certain accounting topics from previously issued ASUs, including ASU 2016-13. ASU 2019-04 addresses certain aspects of ASU 2016-13, including but not limited to, accrued interest receivable, loan recoveries, interest rate projections for variable-rate financial instruments and expected prepayments. ASU 2019-04 provides alternatives that allow entities to measure credit losses on accrued interest separate from credit losses on the principal portion of a loan, clarifies that entities should include expected recoveries in the measurement of credit losses, allows entities to consider future interest rates when measuring credit losses and can elect to adjust effective interest rates used to discount expected cash flows for expected loan prepayments. ASU 2019-04 is effective upon the adoption of ASU 2016-13. Management is currently evaluating the impact of ASU 2019-04 on the Company’s consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform: Topic 848 ("ASU 2020-04") to provide entities optional expedients for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to dedesignate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective beginning March 12, 2020 upon issuance and remains effective through December 31, 2022. During the first quarter 2020, the Company elected to apply the hedge accounting expedients described above. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company will continue to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.
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Safehold Inc.
Notes to Consolidated Financial Statements (Continued)
(unaudited)

Note 4—Real Estate and Real Estate-Related Intangibles
The Company's real estate assets consist of the following ($ in thousands):
As of
June 30, 2020December 31, 2019
Land and land improvements, at cost$514,149  $494,670  
Buildings and improvements, at cost193,232  193,232  
Less: accumulated depreciation(19,300) (16,286) 
Total real estate, net$688,081  $671,616  
Real estate-related intangible assets, net240,845  242,837  
Total real estate, net and real estate-related intangible assets, net$928,926  $914,453  

Real estate-related intangible assets, net consist of the following items ($ in thousands):
As of June 30, 2020
Gross
Intangible
Accumulated
Depreciation
Carrying
Value
Above-market lease assets, net(1)
$203,774  $(7,835) $195,939  
In-place lease assets, net(2)
54,487  (10,313) 44,174  
Other intangible assets, net750  (18) 732  
Total$259,011  $(18,166) $240,845  

As of December 31, 2019
Gross
Intangible
Accumulated
Depreciation
Carrying
Value
Above-market lease assets, net(1)
$203,288  $(6,183) $197,105  
In-place lease assets, net(2)
53,626  (8,629) 44,997  
Other intangible assets, net750  (15) 735  
Total$257,664  $(14,827) $242,837  
_______________________________________________________________________________
(1)Above-market lease assets are recognized during business combinations and asset acquisitions when the present value of market rate rental cash flows over the term of a lease is less than the present value of the contractual in-place rental cash flows. Above-market lease assets are amortized over the non-cancelable term of the leases.
(2)In-place lease assets are recognized during business combinations and asset acquisitions and are estimated based on the value associated with the costs avoided in originating leases comparable to the acquired in-place leases as well as the value associated with lost rental revenue during the assumed lease-up period. In-place lease assets are amortized over the non-cancelable term of the leases.

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Safehold Inc.
Notes to Consolidated Financial Statements (Continued)
(unaudited)

The amortization of real estate-related intangible assets had the following impact on the Company's consolidated statements of operations for the three and six months ended June 30, 2020 and 2019 ($ in thousands):

Income StatementFor the Three Months Ended June 30,
Intangible assetLocation20202019
Above-market lease assets (decrease to income)Operating lease income$826  $766  
In-place lease assets (decrease to income)Depreciation and amortization845  833  
Other intangible assets (decrease to income)Operating lease income2  2  

Income StatementFor the Six Months Ended June 30,
Intangible assetLocation20202019
Above-market lease assets (decrease to income)