|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |  |  |  |  |
| x                                                                                             | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the fiscal year ended December 31, 2019                                                   |
| or                                                                                            |
| o                                                                                             | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from ____________________________ to ______________________________ |
| Commission File Number: 001-31458                                                             |
| Drive Shack Inc.                                                                              |
| (Exact name of registrant as specified in its charter)                                        |
| Maryland                                                                                      | 81-0559116 |
| (State or other jurisdiction of incorporation or organization)                                | (I.R.S. Employer Identification No.) |
|                                                                                          |   |
| 218 W. 18th Street, 3rd Floor, New York, NY                                                   | 10011 |
| (Address of principal executive offices)                                                      | (Zip Code) |
| Registrant’s telephone number, including area code: (646) 585-5591                      |
| Securities registered pursuant to Section 12(b) of the Act:                                   |
| Title of each class:                                                                          | Trading Symbol(s) | Name of exchange on which registered: |
| Common Stock, $0.01 par value per share                                                       | DS | New York Stock Exchange (NYSE) |
| 9.75% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share               | DS-PB | New York Stock Exchange (NYSE) |
| 8.05% Series C Cumulative Redeemable Preferred Stock, $0.01 par value per share               | DS-PC | New York Stock Exchange (NYSE) |
| 8.375% Series D Cumulative Redeemable Preferred Stock, $0.01 par value per share              | DS-PD | New York Stock Exchange (NYSE) |

|                           |
|---------------------------|
|                           |  |  |  |  |
| Large Accelerated Filer o | Accelerated Filer x | Non-accelerated Filer o | Smaller Reporting Company o | Emerging Growth Company o |

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|         |                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the impact of changes to our operations, including the temporary closure of our Entertainment and Traditional Golf venues, due to the COVID-19 pandemic and uncertainties about the pandemic’s extent and duration; |
|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | uncertainty about our ability to rely on any governmental assistance relating to the COVID-19 pandemic, to re-open our venues and to finance our growth strategy or ongoing operations; |
|         |                                                        |
|---------|--------------------------------------------------------|
| • | our financial liquidity and ability to access capital; |
|         |                                                                         |
|---------|-------------------------------------------------------------------------|
| • | the ability to retain and attract members and guests to our properties; |
|         |                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes in global, national and local economic conditions, including, but not limited to, increases in unemployment levels, changes in consumer spending patterns, a prolonged economic slowdown and a downturn in the real estate market, particularly due to the COVID-19 pandemic; |
|         |                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | effects of unusual weather patterns and extreme weather events, geographical concentrations with respect to our operations and seasonality of our business; |
|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | competition within the industries in which we operate or may pursue additional investments, including competition for sites for our Entertainment Golf venues; |
|         |                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | material increases in our expenses, including but not limited to unanticipated labor issues, rent or costs with respect to our workforce, and costs of goods, utilities and supplies; |
|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | our inability to sell or exit certain properties, and unforeseen changes to our ability to develop, redevelop or renovate certain properties; |
|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | our ability to further invest in our business and implement our strategies; |
|         |                                                         |
|---------|---------------------------------------------------------|
| • | difficulty monetizing our real estate debt investments; |
|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | liabilities with respect to inadequate insurance coverage, accidents or injuries on our properties, adverse litigation judgments or settlements, or membership deposits; |
|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | changes to and failure to comply with relevant regulations and legislation, including in order to maintain certain licenses and permits, and environmental regulations in connection with our operations; |
|         |                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------|
| • | inability to execute on our growth and development strategy by successfully developing, opening and operating new venues; |
|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | impacts of failures of our information technology and cybersecurity systems; |
|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | the impact of any current or further legal proceedings and regulatory investigations and inquiries; and |
|         |                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | other risks detailed from time to time below, particularly under the heading “Risk Factors” in this Annual Report and subsequent reports filed with the SEC. |

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|            |
|------------|
|            |  |  |
|       |   | Page |
|       | PART III |   |
| Item 10.   | Directors, Executive Officers and Corporate Governance | 1 |
| Item 11.   | Executive Compensation | 6 |
| Item 12.   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 14 |
| Item 13.   | Certain Relationships and Related Transactions, and Director Independence | 17 |
| Item 14.   | Principal Accounting Fees and Services | 18 |
|       |   |   |
|       | PART IV |   |
| Item 15.   | Exhibits | 20 |
|       |   |   |
| Signatures |   | 20 |

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|           |
|-----------|
|           |  |  |  |  |  |  |
| Class     |   | Term Expiration |   | Director |   | Age |
| Class I   |   | 2021 |   | Stuart A. McFarland |   | 73 |
|      |   |   |   | Clifford Press |   | 66 |
| Class II  |   | 2022 |   | William J. Clifford |   | 62 |
|      |   |   |   | Virgis W. Colbert |   | 81 |
|      |   |   |   | Benjamin M. Crane |   | 44 |
| Class III |   | 2020 |   | Wesley R. Edens |   | 58 |

|                                                    |                                                                  |
|----------------------------------------------------|------------------------------------------------------------------|
| Chairman of the Board of Directors since inception | Mr. Edens has been Chairman of our Board since our inception and |

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|                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director since June 2018 | Mr. Clifford has been a member of our Board of Directors and a member of the Audit Committee of our Board of Directors since June 2018 and the chairman of the Nominating and Corporate Governance Committee of our Board of Directors since May 2019. Mr. Clifford was the Senior Vice President, CFO and Treasurer for Gaming and Leisure Properties Inc. (NASDAQ: GLPI) from 2013 to 2018, which was a spin-off from Penn National Gaming, Inc. (NASDAQ: PENN) where he was Senior Vice President of Finance and CFO from 2001 to 2013. He was also a member of the board of directors and Audit Committee Chairman for Intrawest Holdings, Inc. (NASDAQ: SNOW) from 2014 to 2017. Mr. Clifford previously held operational finance roles for casinos in Las Vegas and the Bahamas. Mr. Clifford’s knowledge, skill, expertise and experience as described above, in particular his financial acumen from an operational and capital planning perspective, led our Board of Directors to conclude that Mr. Clifford should be elected to serve as a director of the Company. |
|                           |                                                                                                                                                                                                                                                                                                                                                                                       |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director since April 2019 | Mr. Colbert has been a member of our Board of Directors and a member of the Audit Committee and Compensation Committee of our Board of Directors since April 2019. Mr. Colbert is a Senior Advisor to MillerCoors LLC and has served in a variety of key leadership positions with Miller Brewing Company since 1979, including Executive Vice President of Worldwide Operations from |

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|                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director since April 2019 | Mr. Crane has been a member of our Board of Directors and a member of the Compensation Committee of our Board of Directors since April 2019. Mr. Crane is an American professional golfer, who has been a member of the PGA tour since December 2001, when he was awarded his PGA tour card for 2002. Mr. Crane is actively involved in several charities, including the Crane Foundation, which he started with his wife Heather. The purpose of the Crane Foundation is to help others reach new heights and levels of achievement and spirituality in their lives through gifts, grants and additional resources. His charity also supports several other charities including the College Golf Fellowship, Forward Edge International, H.O.P.E Farm Inc., Love146 Inc., the St. Bernard Project and Young Life. Mr. Crane received his B.A. from the University of Oregon. These factors and his other qualifications and skills, including his experience and success with and connections to the game of golf and sporting industries more generally, and their business partners and fans, as well as charitable leadership, led our Board of Directors to conclude that Mr. Crane should be elected to serve as a director of the Company. |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director since October 2002 | Mr. McFarland has been a member of our Board of Directors since October 2002, and chairman of the Audit Committee and member of the Nominating and Corporate Governance Committee of our Board of Directors since November 2002. Beginning in 1997, Mr. McFarland worked for Federal City Capital Advisors, LLC, which is now a dormant entity, where he most recently served as Managing Director. Mr. McFarland was Chairman of Federal City Bancorp, Inc. from 2005 to 2007 and President and Chief Executive Officer of Pedestal Inc., an internet secondary mortgage market trading exchange, from 1997 to 2001. Mr. McFarland was Executive Vice President and General Manager of GE Capital Mortgage Services and President and CEO of GE Capital Asset Management |

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|                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Director since February 2016 | Mr. Press has been a member of our Board of Directors and a member of the Nominating and Corporate Governance Committee of our Board of Directors since February 2016. Mr. Press has been chairman of the Compensation Committee of our Board of Directors since May 2017. Mr. Press has been a Managing Member of OPP, LLC and its predecessor firm, Oliver Press Partners, LLC, an investment advisory firm, since March 2005. In September 2019, Mr. Press was named CEO of Acacia Research Corporation (NASDAQ: ACTG), where he has also served on the board of directors since June 2018. From 1986 to March 2003, Mr. Press served as a General Partner of Hyde Park Holdings, Inc., a private equity investment firm. From March 2008 to November 2009, Mr. Press served as a director and member of the Governance & Nominating Committee of Coherent Inc. (NASDAQ: COHR), a manufacturer of laser based photonic products. From December 2011 to February 2013, Mr. Press served as a director of SeaBright Holdings, Inc. (formerly NYSE:SBX), a specialty provider of multi-jurisdictional workers’ compensation insurance. From 2001 to June 2011, Mr. Press served as a director of GM Network Ltd., a private holding company providing Internet-based digital currency services. From October 2016 until June 2018 Mr. Press served as a director of Stewart Information Services Corporation (NYSE: STC), a real estate information, title insurance and transaction management company. From April 2016 until October 2019, Mr. Press served as a director of Quantum Corporation (NYSE: QTM), a provider of data storage, archive and data protection. Mr. Press received his MA degree from Oxford University and an MBA degree from Harvard Business School. Mr. Press was appointed pursuant to an agreement with BLR Partners LP and its affiliates. Mr. Press’s knowledge, skill, expertise and experience as described above, including his experience as a director of public companies, led our Board of Directors to conclude that Mr. Press should be elected to serve as a director of the Company. |

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|                            |
|----------------------------|
|                            |  |  |  |  |
| Name                       |   | Age |   | Position |
| Hana Khouri                |   | 36 |   | Chief Executive Officer (as of November 11, 2019) and President (as of August 6, 2019) |
| Lawrence A. Goodfield, Jr. |   | 41 |   | Interim Chief Financial Officer (as of March 5, 2020), Chief Accounting Officer and Treasurer |
| Kenneth A. May             |   | 59 |   | Former Chief Executive Officer, President and Director (to November 11, 2019) |
| David M. Hammarley         |   | 49 |   | Former Chief Financial Officer (to March 5, 2020) |
| Sara A. Yakin              |   | 33 |   | Former Chief Operating Officer (to January 22, 2019) |

----

----

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name                  |   | Fees Earned or Paid in Cash |   | Stock Awards(1) |   | Director Stock Program |   | Total |
| William J. Clifford   |   | $ | 75,000 |  |   | $ | 55,000 |  |   | $ | — |  |   | $ | 130,000 |  |
| Virgis W. Colbert(2)  |   | $ | 54,453 |  |   | $ | 36,302 |  |   | $ | 4,870 |  |   | $ | 95,625 |  |
| Benjamin M. Crane(3)  |   | $ | 54,453 |  |   | $ | 36,302 |  |   | $ | — |  |   | $ | 90,755 |  |
| Kevin J. Finnerty(4)  |   | $ | 51,028 |  |   | $ | — |  |   | $ | — |  |   | $ | 51,028 |  |
| Stuart A. McFarland   |   | $ | 75,000 |  |   | $ | 60,000 |  |   | $ | — |  |   | $ | 135,000 |  |
| Clifford Press        |   | $ | 75,000 |  |   | $ | 55,000 |  |   | $ | — |  |   | $ | 130,000 |  |
| Sarah L. Watterson(5) |   | $ | 200,000 |  |   | $ | — |  |   | $ | — |  |   | $ | 200,000 |  |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Each individual who was serving as a non-employee director as of the date of our annual meeting of stockholders in 2019 received an annual award of RSUs pursuant to the 2018 Plan, and the additional terms established by resolution of the Board of Directors effective on the first business day after our annual meeting of stockholders, valued at $50,000 based on the fair market value of a share of our common stock on the date of grant. In 2019, such directors accordingly received 10,374 RSUs. Mr. McFarland also received 2,711 RSUs valued at $10,000 representing the fee for his service as Audit Committee chair and Messrs. Clifford and Press each also received 1,356 RSUs valued at $5,000 representing the fee for their service as the Nominating and Governance Committee and Compensation Committee chairs, respectively. The amounts  reported in this column constitute the aggregate grant date fair value of each award of RSUs granted to our non-employee directors in 2019 calculated in accordance with FASB ASC Topic 718. For a summary of the assumptions made in the valuation of these awards, please see Note 11 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2019. All RSUs held by our non-employee directors vest on the one-year anniversary of the grant date. As of December 31, 2019, the following numbers of stock options and RSUs were held by our non-employee directors: (i) for Mr. Clifford: 11,730 RSUs; (ii) for Mr. Colbert: 11,666 RSUs; (iii) for Mr. Crane: 7,865 RSUs; (iv) for Mr. McFarland: 13,085 RSUs; and (v) for Mr. Press: 333 options and 11,730 RSUs. |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Mr. Colbert's total compensation for 2019 is pro-rated from his appointment to our Board of Directors on April 11, 2019. The RSU awards represent 40% of his total compensation earned for 2019. In addition, Mr. Colbert elected to receive $16,953 of compensation in the form of RSUs in lieu of cash, the value of which is reported pursuant to SEC guidance in the "Fees Earned or Paid in Cash" column of the table. On May 24, 2019, Mr. Colbert purchased 5,000 shares of our common stock and the Company issued 1,000 shares representing the matching grant, as permitted under the Director Stock Program. The fair value of the matching grant is based on the May 24, 2019  closing price of $4.87. |
|           |                                                                                                                                                                                                      |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)  | Mr. Crane’s total compensation for 2019 is pro-rated from his appointment to our Board of Directors on April 11, 2019. The RSU awards represent 40% of his total compensation earned for 2019. |
|           |                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------|
| (4)  | Mr. Finnerty did not stand for re-election to the Board of Directors at the 2019 Stockholders Meeting, and his term expired on May 29, 2019. |
|           |                                                                                                                                                                                                                                                                                                  |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)  | Ms. Watterson resigned from the Board of Directors on May 7, 2019. The amount shown in the table reflects compensation that Ms. Watterson received for her services as an at-will employee during 2019. Ms. Watterson was not compensated by the Company for her services as a director in 2019. |

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|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | oversee the design of our executive compensation programs, policies and practices; |
|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | determine the types and amounts of compensation for executive officers; and |
|         |                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | review and approve the adoption, termination and amendment of, and to administer and, as appropriate, make recommendations to the Board regarding, our incentive compensation plans. |

|                            |
|----------------------------|
|                            |  |  |  |  |
| Name                       |   | 2019 Base Salary |
| Hana Khouri                |   | $ | 400,000 |  |
| Lawrence A. Goodfield, Jr. |   | $ | 285,000 |  |
| Kenneth A. May             |   | $ | 500,000 |  |
| David M. Hammarley         |   | $ | 425,000 |  |
| Sara A. Yakin              |   | $ | 200,000 |  |

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|        |                                                                                                                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Company performance. The Compensation Committee reviews all aspects of the Company’s financial and operational performance, and also assesses performance in relation to the direction of the Company’s business, taking into account changing economic and market environments. |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Individual performance. The Compensation Committee also evaluates each NEO’s individual performance, including, generally, one or any combination of the following: exceptional performance of the individual’s functional responsibilities; leadership; creativity; innovation; collaboration; development and implementation of growth initiatives; and other activities that are critical to driving long-term value for our stockholders. |

|                            |
|----------------------------|
|                            |  |  |  |  |
| Name                       |   | 2019 Annual Incentive |
| Hana Khouri                |   | $ | 208,000 |  |
| Kenneth A. May             |   | $ | — |  |
| David M. Hammarley         |   | $ | 212,500 |  |
| Lawrence A. Goodfield, Jr. |   | $ | 164,000 |  |
| Sara A. Yakin              |   | $ | — |  |

----

----

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|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name and Principal Position                                              |   | Year |   | Salary($) |   | Bonus($)(1) |   | Stock Awards($)(2) |   | Option Awards($)(2) |   | All Other Compensation($)(3) |   | Total($) |
| Hana Khouri,Chief Executive Officer and President                        |   | 2019 |   | 162,192 |  |   | 208,000 |  |   | — |  |   | — |  |   | — |  |   | 370,192 |  |
| David M. Hammarley,Chief Financial Officer(4)                            |   | 2019 |   | 404,904 |  |   | 212,500 |  |   | — |  |   | 1,280,000 |  |   | 60 |  |   | 1,897,464 |  |
|                                                                     | 2018 |   | 31,154 |  |   | — |  |   | — |  |   | 169,087 |  |   | 10 |  |   | 200,251 |  |
| Lawrence A. Goodfield, Jr.,Chief Accounting Officer and Treasurer        |   | 2019 |   | 271,289 |  |   | 164,000 |  |   | 100,000 |  |   | — |  |   | 57 |  |   | 535,346 |  |
|                                                                     | 2018 |   | 200,000 |  |   | 375,000 |  |   | — |  |   | — |  |   | 95 |  |   | 575,095 |  |
|                                                                     | 2017 |   | 200,000 |  |   | 275,000 |  |   | — |  |   | — |  |   | 8,199 |  |   | 483,199 |  |
| Kenneth A. May,Former Chief Executive Officer, President and Director(5) |   | 2019 |   | 494,250 |  |   | — |  |   | — |  |   | — |  |   | 250,060 |  |   | 744,310 |  |
|                                                                     | 2018 |   | 51,742 |  |   | — |  |   | — |  |   | 7,309,144 |  |   | 22,503 |  |   | 7,383,389 |  |
| Sara A. Yakin,Former Chief Operating Officer(6)                          |   | 2019 |   | 23,077 |  |   | — |  |   | — |  |   | — |  |   | 700,005 |  |   | 723,082 |  |
|                                                                     | 2018 |   | 200,000 |  |   | — |  |   | — |  |   | — |  |   | 95 |  |   | 200,095 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Due to the onset of the COVID-19 pandemic in the United States, the annual cash incentive bonuses relating to 2019 performance that are shown in the table were either deferred or cancelled and have not yet been paid to our NEOs as of the date hereof, other than for Mr. Hammarley. The Compensation Committee is still considering whether to pay our NEOs the 2019 bonuses at a later date or cancel the 2019 bonuses. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The amounts reported in these columns constitute the aggregate grant date fair value of each RSU and stock option award granted in the applicable years, calculated in accordance with FASB ASC Topic 718. For additional information regarding these awards, refer to the “Grants of Plan-Based Awards Table,” below. For a summary of the assumptions made in the valuation of these awards, please see Note 11 to our Consolidated Financial Statements included in this Annual Report. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The 2019 amounts reported in this column consist of the following: (i) for Mr. Hammarley, $60 for life insurance premiums; (ii) for Mr. Goodfield, $57 for life insurance premiums; (iii) for Mr. May, $60 for life insurance premiums and $250,000 for severance; (iv) for Ms. Watterson, $19] for life insurance premiums; and (iv) for Ms. Yakin, $5 of life insurance premiums and $700,000 as severance. |
|     |                                                                                             |
|-----|---------------------------------------------------------------------------------------------|
| (4) | Mr. Hammarley ceased to serve as our Chief Financial Officer effective as of March 5, 2020. |
|     |                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | In connection with Mr. May's retirement on November 11, 2019, the Company agreed to make an additional $100,000 payment on the one-year anniversary of his departure, subject to certain terms and conditions (including his continued compliance with his restrictive covenant obligations). |
|     |                                                                                            |
|-----|--------------------------------------------------------------------------------------------|
| (6) | Ms. Yakin ceased to serve as our Chief Operating Officer effective as of January 22, 2019. |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name                      |   | Grant Date |   | All Other Stock Awards: Number of Stock or Units(#) |   | All Other Option Awards: Number of Securities Underlying Options(#) |   | Exercise or Base Price of Option Awards(#/Sh) |   | Grant Date Fair Value of Stock and Option Awards(1) |
| Lawrence A Goodfield, Jr. |   | 4/11/2019 |   | 21,459 |  |   | — |  |   | $ | — |  |   | $ | 100,000 |  |
| David M. Hammarley        |   | 4/11/2019 |   | — |  |   | 695,652 |  |   | $ | 4.66 |  |   | $ | 1,280,000 |  |

|     |                                                                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The amounts reported in this column constitute the aggregate grant date fair value of each award calculated in accordance with FASB ASC Topic 718. The awards granted are also disclosed in the “Stock Awards” and "Option Awards" columns in the “2019 Summary Compensation Table” above. |

|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |
| Name(1)               |   | Number of Securities Underlying Unexercised Options(#) Exercisable |   | Number of Securities Underlying Unexercised Options(#) Unexercisable |   | Option Exercise Price($) |   | Option ExpirationDate |
| Kenneth A. May(2)     |   | 1,117,118 |  |   | — |  |   | $ | 5.44 |  |   | 2/9/2020 |
| David M. Hammarley(3) |   | — |  |   | 75,000 |  |   | $ | 5.44 |  |   | 11/12/2028 |
|                  |   | — |  |   | 695,652 |  |   | $ | 4.66 |  |   | 4/11/2029 |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |
| Name(1)                    |   | Number of Shares or Units that Have Not Yet Vested (#) |   | Market Value of Shares or Units of Stock That Have Not Yet Vested($) |
| Lawrence A. Goodfield, Jr. |   | 21,429 |   | $ | 78,403 |  |

|     |                                                                                                                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Ms. Khouri held no outstanding options or RSUs as of December 31, 2019. In July 2019, Ms. Yakin was no longer an employee of Drive Shack and the 921,992 options previously held by her reverted back to an affiliate of Fortress, FIG LLC (the Company's former "Manager"). |
|     |                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | In connection with Mr. May's retirement on November 11, 2019, his option awards were modified to accelerate the vesting of 1,117,118 options, subject to a 90-day exercise period which expired on February 9, 2020. Mr. May forfeited the remaining 2,234,237 options upon his departure. |
|     |                                                                                                                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Mr. Hammarley’s options were scheduled to vest as follows: 75,000 vest and become exercisable on November 12, 2021, and 695,652 vest and become exercisable in equal annual installments on April 11, 2020, 2021 and 2022. In connection with Mr. Hammarley's departure on March 5, 2020, all of his outstanding options were forfeited. |
|     |                                                                                                                               |
|-----|-------------------------------------------------------------------------------------------------------------------------------|
| (4) | Mr. Goodfield's RSUs are scheduled to vest as follows: 7,143 vest on each of the first three anniversaries of the grant date. |

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|     |                                                                                                                                        |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|
| (i) |     voting power, which includes the power to vote, or to direct the voting of, shares of our common stock; and/or |
|      |                                                                                                                        |
|------|------------------------------------------------------------------------------------------------------------------------|
| (ii) | investment power, which includes the power to dispose of, or to direct the disposition of, shares of our common stock. |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |
| Name and Address of Beneficial Owner(1)                     |   | Amount and Nature of Beneficial Ownership |   | Percent of Class(2) |
| Wesley R. Edens(3)                                          |   | 8,562,319 |  |   | 12.8 | % |
| FMR LLC(4)                                                  |   | 5,560,465 |  |   | 8.3 | % |
| American Assets Capital Advisers, LLC(5)                    |   | 4,314,500 |  |   | 6.4 | % |
| BlackRock, Inc.(6)                                          |   | 4,137,166 |  |   | 6.2 | % |
| T. Rowe Price Associates, Inc.(7)                           |   | 3,868,151 |  |   | 5.8 | % |
| Fortress Investment Group LLC and certain affiliates(8)     |   | 3,800,093 |  |   | 5.7 | % |
| William J. Clifford                                         |   | 55,480 |  |   | * |  |
| Virgis W. Colbert                                           |   | 6,000 |  |   | * |  |
| Benjamin M. Crane                                           |   | — |  |   | * |  |
| Stuart A. McFarland                                         |   | 57,849 |  |   | * |  |
| Clifford Press(9)                                           |   | 10,115 |  |   | * |  |
| Hana Khouri(10)                                             |   | 3,355 |  |   | * |  |
| Lawrence A. Goodfield, Jr.                                  |   | 24,153 |  |   | * |  |
| Kenneth A. May(11)                                          |   | — |  |   | * |  |
| David M. Hammarley(12)                                      |   | — |  |   | * |  |
| Sara A. Yakin(13)                                           |   | — |  |   | * |  |
| All directors and executive officers as a group (8 persons) |   | 8,719,271 |  |   | 13.0 | % |

|     |                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The address of all officers and directors listed above are in the care of Drive Shack Inc., 218 W. 18th Street, 3rd Floor, New York, NY 10011. |
|     |                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Percentages shown assume the exercise by such persons of all options to acquire shares of our common stock that are exercisable within 60 days of April 8, 2020, and no exercise by any other person. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Includes 8,562,319 shares over which Mr. Edens has sole voting and investment power (including 4,714,591 shares held by Mr. Edens directly, 3,847,728 shares held in a family trust for which he serves as trustee and 16,666 shares held in a charitable trust for which he serves as a trustee). Does not include: (i) 775 shares held by Mr. Edens’ spouse or (ii) 16,666 shares held in a charitable trust of which his spouse is sole trustee, in respect of which Mr. Edens disclaims beneficial ownership. |
|     |                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Sole voting power in respect of 198,172 shares and sole dispositive power in respect of 5,560,465 shares as stated in a Schedule 13G/A filed with the SEC on April 10, 2020. FMR LLC’s address is 245 Summer Street, Boston, MA 02210. |
|     |                                                                                                                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Shared voting and dispositive power in respect of 4,314,500 shares, as stated in a Schedule 13G filed with the SEC on February 4, 2019. American Assets Capital Advisors, LLC’s address is 11455 El Camino Real, Suite 140, San Diego, CA 92130. |
|     |                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Sole voting power in respect of 4,061,376 shares and sole dispositive power in respect of 4,137,166 shares as stated in a Schedule 13G filed with the SEC on February 7, 2020. BlackRock, Inc.’s address is 55 East 52nd Street, New York, NY 10055. |
|     |                                                                                                                                                                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Sole voting power in respect of 790,531 shares and sole dispositive power in respect of 3,868,151 shares as stated in a Schedule 13G filed with the SEC on February 7, 2020. T. Rowe Price Associates, Inc.’s address is 100 E. Pratt Street, Baltimore, MD 2120. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | Shared voting power and dispositive power in respect of 3,800,093 shares (including 172,848 shares held by FIG LLC directly and 3,627,245 shares issuable upon the exercise of options within 60 days that FIG LLC may acquire by exercising options to purchase shares within 60 days of April 8, 2020) as stated in a Schedule 13D/A filed with the SEC on August 16, 2019. Each of Fortress, Fortress Operating Entity I LP (“FOE I”) and FIG Corp., may also be deemed to beneficially own and share the power to vote and dispose of the 3,800,093 shares beneficially owned by FIG LLC, by virtue of FOE I being the Class A Member of FIG LLC, FIG Corp. being the general partner of FOE I, and by virtue of Fortress’s ownership of all the interests of FIG Corp. The addresses of each of Fortress, FIG LLC, FOE I and FIG Corp., are in the care of Fortress Investment Group LLC, 1345 Avenue of the Americas, New York, NY USA 10105. |
|     |                                                                                                                                                                                                                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | Includes 333 shares issuable upon the exercise of options that are exercisable within 60 days of April 8, 2020. Does not include 574,100 shares held directly by Acacia Research Corporation, of which Clifford Press is currently the Chief Executive Officer and a member of the Board of Directors. |
|      |                                                                                                                              |
|------|------------------------------------------------------------------------------------------------------------------------------|
| (10) | Includes 3,355 shares held directly by Ms. Khouri directly. Does not include 2,000 shares held by Ms. Khouri’s spouse. |
|      |                                                                  |
|------|------------------------------------------------------------------|
| (11) | Ceased employment with the Company, effective November 11, 2019. |
|      |                                                              |
|------|--------------------------------------------------------------|
| (12) | Ceased employment with the Company, effective March 5, 2020. |

----

|      |                                                              |
|------|--------------------------------------------------------------|
| (13) | Ceased employment with the Company, effective July 10, 2019. |

|                                                                                    |
|------------------------------------------------------------------------------------|
|                                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Plan Category                                                                      |   | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights |   |   | (b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights |   |   | (c) Number of Securities Remaining Available for Future Issuance Under Equity |   |
| Equity Compensation Plans Approved by Security Holders:                            |   |   |   |   |   |   |   |   |   |
| Newcastle Investment Corp. Nonqualified Stock Option and Incentive Award Plan      |   | 862,601 |  |   |   | $ | 1.00 |  |   |   | — |  |   |
| 2012 Newcastle Investment Corp. Nonqualified Stock Option and Incentive Award Plan |   | 2,893,078 |  |   |   | $ | 2.45 |  |   |   | 25,820 |  | (D) |
| 2014 Newcastle Investment Corp. Nonqualified Stock Option and Incentive Award Plan |   | 765,416 |  |   |   | $ | 4.01 |  |   |   | — |  | (E) |
| 2015 Newcastle Investment Corp. Nonqualified Option and Incentive Award Plan       |   | 333 |  |   |   | $ | 3.78 |  |   |   | — |  | (F) |
| Drive Shack Inc. 2018 Omnibus Incentive Plan                                       |   | 1,309,652 |  | (A) |   | $ | 4.75 |  | (C) |   | 5,343,078 |  | (G) |
| Total Approved                                                                     |   | 5,831,080 |  | (B) |   | $ | 2.78 |  | (C) |   | 5,368,898 |  |   |
|                                                                               |   |   |   |   |   |   |   |   |   |
| Equity Compensation Plans Not Approved by Security Holders:                        |   |   |   |   |   |   |   |   |   |
| November 2013 Manager Option Award                                                 |   | 489,148 |  |   |   | $ | 3.57 |  |   |   | — |  |   |
| 2018 Employment Inducement Award                                                   |   | 1,098,736 |  |   |   | $ | 5.44 |  |   |   | — |  |   |
| Total Not Approved                                                                 |   | 1,587,884 |  |   |   | $ | 4.86 |  |   |   | — |  |   |

|     |                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | Includes (i) 789,034 options granted to our officers, (ii) 464,542 RSUs granted to employees (net of forfeitures and releases),and (ii) 56,076 RSUs granted to our directors, net of forfeitures and releases, other than Mr. Wesley R. Edens, representing the aggregate annual automatic stock awards to each such director for the periods subsequent to the adoption of the 2018 Plan. |
|     |                                                                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | Includes (i) 3,138,097 options held by an affiliate of the former Manager; (ii) 1,382,998 options granted to the former Manager and assigned to certain of Fortress’s former employees, (iii) 333 options and 56,076 RSUs granted to our directors, other than Mr. Edens, (iv) 789,034 options granted to our officers, and (v) 464,542 RSUs granted to employees. |
|     |                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|
| (C) | Represents the weighted average exercise price of the 789,034 options reported in column (a), and does not include the 520,618 RSUs. |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | The maximum available for issuance is 3,333,333 shares in the aggregate over the term of the 2012 Plan and no award shall be granted on or after May 7, 2022 (but awards granted may extend beyond this date).  The number of securities remaining available for future issuance is net of (i) an aggregate of 13,312 shares of our common stock awards to our directors, other than Mr. Edens, representing the annual stock awards to each such director for the periods subsequent to the adoption of the 2012 Plan and prior to the adoption of the 2014 Plan and (ii) an aggregate of 3,294,201 options which have been previously granted under the plan. |
|     |                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | The maximum available for issuance was 166,666 shares in the aggregate over the term of the 2014 Plan and no award (other than a tandem award) may be granted after April 8, 2015 (but awards granted may extend beyond that date). |
|     |                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | The maximum available for issuance was 300,000 shares in the aggregate over the term of the 2015 Plan and no award (other than a tandem award) may be granted after April 16, 2016 (but awards granted may extend beyond that date). |
|     |                                                                                                                                                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (G) | The maximum available for issuance is 5,343,078, subject to an annual limitation as detailed in the 2018 Plan, out of a total of 6,697,710 over the entire five-year term of the 2018 Plan. |

----

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | within the preceding three years: (i) the director was employed by the Company; (ii) an immediate family member of the director was employed by the Company as an executive officer; (iii) the director or an immediate family member of the director received more than $120,000 per year in direct compensation from the Company (other than director or committee fees and pension or other forms of deferred compensation for prior service, so long as such compensation is not contingent on continued service); (iv) the director was employed by or affiliated with the independent registered public accounting firm of the Company; (v) an immediate family member of the director was employed by the independent registered public accounting firm of the Company as a partner, principal or manager; or (vi) an executive officer of the Company was on the compensation committee of a company which employed the director, or which employed an immediate family member of the director as an executive officer; or |
|     |                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | he or she is a current employee, or an immediate family member is a current executive officer, of another company that has made payments to, or received payments from, the Company for property or services in an amount which, in any of the last three fiscal years, exceeds the greater of $1 million, or 2% of such other company’s consolidated gross annual revenues. |

|      |
|------|
|      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Year |   | Audit Fees |   | Audit-Related Fees |   | Tax Fees |   | All Other Fees |
| 2019 |   | $ | 1,182,680 |  |   | $ | — |  |   | $ | 443,446 |  |   | $ | — |  |
| 2018 |   | $ | 1,484,501 |  |   | $ | 150,000 |  |   | $ | 515,238 |  |   | $ | — |  |

----

|      |
|------|
|      |  |
| 31.1 | Certification of Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Certification of Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |

----

|        |
|--------|
|        |  |  |
|   | DRIVE SHACK INC. |
|   |   |   |
|   | By: | /s/ Hana Khouri |
|   |   | Hana Khouri |
|   |   | Chief Executive Officer and President |
|   |   |   |
|   |   | April 29, 2020 |