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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
September 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: (212930-9400
_______________________________________________________________________________
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 October 20, 2020, there were 51,170,286 shares, $0.01 par value per share, of Safehold Inc. common stock outstanding.


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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
 September 30,
2020
December 31,
2019
ASSETS
Real estate
Real estate, at cost$707,537 $687,902 
Less: accumulated depreciation(20,807)(16,286)
Real estate, net686,730 671,616 
Real estate-related intangible assets, net239,172 242,837 
Total real estate, net and real estate-related intangible assets, net925,902 914,453 
Net investment in sales-type leases1,088,687 984,598 
Ground Lease receivables479,881 397,087 
Equity investments in Ground Leases129,261 127,524 
Cash and cash equivalents65,222 22,704 
Restricted cash42,498 24,078 
Deferred operating lease income receivable84,585 58,303 
Deferred expenses and other assets, net34,751 37,814 
Total assets$2,850,787 $2,566,561 
LIABILITIES AND EQUITY  
Liabilities:  
Accounts payable, accrued expenses and other liabilities$75,185 $43,008 
Real estate-related intangible liabilities, net56,849 57,333 
Debt obligations, net1,469,570 1,372,922 
Total liabilities1,601,604 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, 51,170 and 47,782 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
512 478 
Additional paid-in capital1,290,616 1,132,603 
Retained earnings (accumulated deficit)17,311 (2,146)
Accumulated other comprehensive loss(61,252)(39,123)
Total Safehold Inc. shareholders' equity1,247,187 1,091,812 
Noncontrolling interests1,996 1,486 
Total equity1,249,183 1,093,298 
Total liabilities and equity$2,850,787 $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 September 30,
For the Nine Months
Ended September 30,
2020201920202019
Revenues:
Operating lease income$17,195 $17,132 $55,088 $54,844 
Interest income from sales-type leases20,583 4,032 59,315 6,834 
Other income222 1,146 1,115 2,132 
Total revenues38,000 22,310 115,518 63,810 
Costs and expenses: 
Interest expense16,430 7,708 47,811 18,215 
Real estate expense493 625 1,828 2,082 
Depreciation and amortization2,361 2,345 7,064 7,031 
General and administrative5,302 3,096 16,924 10,552 
Other expense34 285 194 600 
Total costs and expenses24,620 14,059 73,821 38,480 
Income from operations before other items13,380 8,251 41,697 25,330 
Loss on early extinguishment of debt (2,011) (2,011)
Earnings (losses) from equity method investments832 (759)2,472 (759)
Net income14,212 5,481 44,169 22,560 
Net income attributable to noncontrolling interests(1)
(49)(49)(145)(5,986)
Net income attributable to Safehold Inc. common shareholders$14,163 $5,432 $44,024 $16,574 
Per common share data: 
Net income  
Basic$0.28 $0.15 $0.88 $0.62 
Diluted$0.28 $0.15 $0.88 $0.62 
Weighted average number of common shares:
Basic 51,153 36,111 50,158 26,748 
Diluted51,162 36,111 50,167 26,748 
_______________________________________________________________________________
(1)For the nine months ended September 30, 2019, includes $5.8 million 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.
2

Table of Contents
Safehold Inc.
Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(unaudited)

 For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2020201920202019
Net income $14,212 $5,481 $44,169 $22,560 
Other comprehensive income (loss): 
Reclassification of (gains) losses on derivatives into earnings508 189 1,321 (46)
Unrealized gain (loss) on derivatives984 (9,132)(23,450)(32,362)
Other comprehensive gain (loss)1,492 (8,943)(22,129)(32,408)
Comprehensive income (loss)15,704 (3,462)22,040 (9,848)
Comprehensive income attributable to noncontrolling interests(49)(49)(145)(2,328)
Comprehensive income (loss) attributable to Safehold Inc.$15,655 $(3,511)$21,895 $(12,176)

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 June 30, 2020$511 $1,287,385 $11,454 $(62,744)$1,811 $1,238,417 
Net income— — 14,163 — 49 14,212 
Issuance of common stock, net / amortization1 3,231 — — 147 3,379 
Dividends declared ($0.16224 per share)
— — (8,306)— — (8,306)
Change in accumulated other comprehensive income (loss) — — — 1,492  1,492 
Distributions to noncontrolling interests— — — — (11)(11)
Balance as of September 30, 2020$512 $1,290,616 $17,311 $(61,252)$1,996 $1,249,183 
Balance as of June 30, 2019$309 $626,793 $(4,926)$(30,341)$1,229 $593,064 
Net income— — 5,432 — 49 5,481 
Issuance of common stock, net / amortization 95 261,664 — — 91 261,850 
Dividends declared ($0.156 per share)
— — (6,315)— — (6,315)
Change in accumulated other comprehensive income (loss)— — — (8,943) (8,943)
Distributions to noncontrolling interests— — — — (11)(11)
Balance as of September 30, 2019$404 $888,457 $(5,809)$(39,284)$1,358 $845,126 
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— — 44,024 — 145 44,169 
Issuance of common stock, net / amortization34 158,013 — — 397 158,444 
Dividends declared ($0.4805 per share)
— — (24,567)— — (24,567)
Change in accumulated other comprehensive income (loss) — — — (22,129)— (22,129)
Distributions to noncontrolling interests— — — — (32)(32)
Balance as of September 30, 2020$512 $1,290,616 $17,311 $(61,252)$1,996 $1,249,183 
Balance as of December 31, 2018$183 $370,530 $(8,486)$(6,876)$2,007 $357,358 
Net income— — 16,574 — 5,986 22,560 
Issuance of common stock, net / amortization 96 265,239 — — 265 265,600 
Investor unit conversion (refer to Note 11)125 252,060 — (6,450)(245,735)— 
Dividends declared ($0.462 per share)
— — (13,897)— — (13,897)
Change in accumulated other comprehensive income (loss) — — — (28,750)(3,658)(32,408)
Contributions from noncontrolling interests net of costs— 628 — 2,792 245,426 248,846 
Distributions to noncontrolling interests— — — — (2,933)(2,933)
Balance as of September 30, 2019$404 $888,457 $(5,809)$(39,284)$1,358 $845,126 

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 Nine Months
Ended September 30,
20202019
Cash flows from operating activities:  
Net income $44,169 $22,560 
Adjustments to reconcile net income to cash flows from operating activities:  
Depreciation and amortization7,064 7,031 
Stock-based compensation expense1,555 1,450 
Deferred operating lease income(26,282)(26,360)
Non-cash interest income from sales-type leases(21,758)(2,282)
Non-cash interest expense8,088 1,204 
Amortization of real estate-related intangibles, net2,003 1,843 
Loss on early extinguishment of debt 2,011 
(Earnings) losses from equity method investments(2,472)759 
Distributions from operations of equity method investments734  
Amortization of premium, discount and deferred financing costs on debt obligations, net1,677 1,654 
Non-cash management fees9,282 4,971 
Other operating activities1,596 1,065 
Changes in assets and liabilities: 
Changes in deferred expenses and other assets, net(5)476 
Changes in accounts payable, accrued expenses and other liabilities125 (20,928)
Cash flows provided by (used in) operating activities25,776 (4,546)
Cash flows from investing activities:  
Acquisitions of real estate(20,612)(28,816)
Origination/acquisition of net investment in sales-type leases and Ground Lease receivables(117,740)(525,886)
Fundings on Ground Lease receivables(47,331) 
Deposits on Ground Lease investments1,050 (30,697)
Contributions to equity method investments (22,169)
Other investing activities(104)(4,007)
Cash flows used in investing activities(184,737)(611,575)
Cash flows from financing activities:  
Proceeds from issuance of common stock150,086 264,600 
Proceeds from debt obligations418,970 435,989 
Repayments of debt obligations(317,000)(297,500)
Payments for debt prepayment or extinguishment costs (1,358)
Payments for deferred financing costs(6,528)(2,559)
Dividends paid to common shareholders(23,702)(10,314)
Payment of offering costs(1,919)(5,029)
Distributions to noncontrolling interests(32)(2,933)
Contributions from noncontrolling interests (refer to Note 11) 250,000 
Other financing activities24 (2,412)
Cash flows provided by financing activities219,899 628,484 
Changes in cash, cash equivalents and restricted cash60,938 12,363 
Cash, cash equivalents and restricted cash at beginning of period46,782 24,425 
Cash, cash equivalents and restricted cash at end of period$107,720 $36,788 
Supplemental disclosure of non-cash investing and financing activity:
Origination of sales-type leases$ $10,194 
Acquisition of real estate383  
Assumption of other liabilities/debt obligations383 10,194 
Investor unit conversion (refer to Note 11) 250,000 
Dividends declared to common shareholders8,306 6,322 
Accrued finance costs2 561 
Accrued offering costs15 114 
The accompanying notes are an integral part of the consolidated financial statements.
6

Table of Contents
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 September 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 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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Table of Contents
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 September 30, 2020, the total assets of these consolidated VIEs were $61.9 million and total liabilities were $29.7 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 September 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 September 30, 2020 and December 31, 2019 was approximately $1.6 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. The Company will cease to qualify as an emerging growth company effective as of December 31, 2020, at which time the exemptions described above will terminate.
For the remainder of the Company's significant accounting policies, refer to the Company's 2019 Annual Report.

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

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 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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Table of Contents
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
September 30, 2020December 31, 2019
Land and land improvements, at cost$514,305 $494,670 
Buildings and improvements, at cost193,232 193,232 
Less: accumulated depreciation(20,807)(16,286)
Total real estate, net$686,730 $671,616 
Real estate-related intangible assets, net239,172 242,837 
Total real estate, net and real estate-related intangible assets, net$925,902 $914,453 

Real estate-related intangible assets, net consist of the following items ($ in thousands):
As of September 30, 2020
Gross
Intangible
Accumulated
Amortization
Carrying
Value
Above-market lease assets, net(1)
$203,778 $(8,665)$195,113 
In-place lease assets, net(2)
54,494 (11,165)43,329 
Other intangible assets, net750 (20)730 
Total$259,022 $(19,850)$239,172 

As of December 31, 2019
Gross
Intangible
Accumulated
Amortization
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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Table of Contents
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 nine months ended September 30, 2020 and 2019 ($ in thousands):

Income StatementFor the Three Months Ended September 30,
Intangible assetLocation20202019
Above-market lease assets (decrease to income)Operating lease income$830 $787 
In-place lease assets (decrease to income)Depreciation and amortization852 836 
Other intangible assets (decrease to income)Operating lease income2 2 

Income StatementFor the Nine Months Ended September 30,
Intangible assetLocation20202019
Above-market lease assets (decrease to income)Operating lease income$2,481 $2,318 
In-place lease assets (decrease to income)Depreciation and amortization2,536 2,503 
Other intangible assets (decrease to income)Operating lease income6 6 

The estimated expense from the amortization of real estate-related intangible assets for each of the five succeeding fiscal years is as follows ($ in thousands):(1)
YearAmount
2020 (remaining three months)$1,690 
20216,759 
20226,759 
20236,743 
20246,695 
_______________________________________________________________________________
(1)As of September 30, 2020, the weighted average amortization period for the Company's real estate-related intangible assets was approximately 80.2 years.

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

Real estate-related intangible liabilities, net consist of the following items ($ in thousands):(1)
As of September 30, 2020
Gross
Intangible
Accumulated
Amortization
Carrying
Value
Below-market lease liabilities(1)
$59,015 $(2,166)$56,849 
As of December 31, 2019
Gross
Intangible
Accumulated
Amortization
Carrying
Value
Below-market lease liabilities(1)
$59,015 $(1,682)$57,333 
_______________________________________________________________________________
(1)Below-market lease liabilities are recognized during business combinations and asset acquisitions when the present value of market rate rental cash flows over the term of a lease exceeds the present value of the contractual in-place rental cash flows. Below-market lease liabilities are amortized over the non-cancelable term of the leases.

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

Income StatementFor the Three Months Ended September 30,
Intangible liabilityLocation20202019
Below-market lease liabilities (increase to income)Operating lease income$161 $161 

Income StatementFor the Nine Months Ended September 30,
Intangible liabilityLocation20202019
Below-market lease liabilities (increase to income)Operating lease income$484 $481 

Future Minimum Operating Lease PaymentsFuture minimum lease payments to be collected under non-cancelable operating leases, excluding lease payments that are not fixed and determinable, in effect as of September 30, 2020, are as follows by year ($ in thousands):
YearInflation-
Linked
Fixed Bumps with Inflation AdjustmentsFixed
Bumps
Percentage
Rent
Fixed Bumps with Percentage RentTotal