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FAIR VALUE
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
We estimate the fair value of our financial assets and liabilities using available market information and valuation methodologies we believe to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts that we would realize upon disposition of our financial assets and liabilities.
Fair Value Measurements on a Recurring Basis
The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:
(in thousands)Level 1Level 2Level 3Net Asset ValueTotal
Fair Value
As of December 31, 2025
Assets:
Derivative instruments$— $5,656 $— $— $5,656 
Investments in unconsolidated joint venture partnerships— — 77,703 — 77,703 
Debt-related investments— — 137,857 — 137,857 
Available-for-sale debt securities— 2,782 118,173 — 120,955 
Equity securities— — — 566 566 
DST Program Loans— — 170,865 — 170,865 
Total assets measured at fair value$— $8,438 $504,598 $566 $513,602 
Liabilities:
Derivative instruments$— $1,125 $— $— $1,125 
Financing obligations— — 2,126,267 — 2,126,267 
Total liabilities measured at fair value$— $1,125 $2,126,267 $— $2,127,392 
As of December 31, 2024
Assets:
Derivative instruments$— $20,693 $— $— $20,693 
Investments in unconsolidated joint venture partnerships— — 38,386 — 38,386 
Debt-related investments— — 28,844 — 28,844 
Available-for-sale debt securities— 13,370 123,187 — 136,557 
DST Program Loans— — 71,068 — 71,068 
Total assets measured at fair value$— $34,063 $261,485 $— $295,548 
Liabilities:
Financing obligations$— $— $878,386 $— $878,386 
Total liabilities measured at fair value$— $— $878,386 $— $878,386 
The following methods and assumptions were used to estimate the fair value of each class of financial assets and liabilities:
Derivative Instruments. The derivative instruments are interest rate swaps and interest rate caps whose fair value is estimated using market-standard valuation models. Such models involve using market-based observable inputs, including interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements, which we have concluded are not material to the valuation. Due to these derivative instruments being unique and not actively traded, the fair value is classified as Level 2. See “Note 6” above for further discussion of our derivative instruments.
Investments in Unconsolidated Joint Venture Partnerships. We have elected the fair value option on certain investments in unconsolidated joint venture partnerships. We separately value the real estate assets held by the unconsolidated joint venture partnerships to arrive at a fair value for our investments in unconsolidated joint venture partnerships. The fair value of real estate assets held by the unconsolidated joint venture partnerships is estimated using a direct capitalization methodology that is based on applying a capitalization rate to the estimated rental income to be generated by the real estate assets of the unconsolidated joint venture partnerships. The capitalization rate used in estimating the fair value of these investments is considered Level 3.
Debt-Related Investments. Our debt-related investments are unlikely to have readily available market quotations. In such cases, we will generally determine the initial value based on the acquisition price of such investments, if we acquire the investment, or the par value of such investment, if we originate the investment. Following the initial measurement, fair value is estimated by utilizing or reviewing certain of the following: (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield, debt-service coverage and/or loan-to-value ratios, and (vii) borrower financial condition and performance. These inputs are generally considered Level 3.
Available-for-Sale Debt Securities. The available-for-sale debt securities are either preferred equity investments in real estate properties, CRE CLOs or CMBS. The fair value for CRE CLOs and CMBS are estimated using third-party broker quotes, which provide valuation estimates based upon contractual cash flows, observable inputs comprising credit spreads and market liquidity. We incorporate credit valuation adjustments to appropriately reflect both our nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements, which we have concluded are not material to the valuation. Due to these CRE CLOs and CMBS being unique and not actively traded, the fair value is classified as Level 2. The preferred equity investments are unlikely to have readily available market quotations. In such cases, the initial value will generally be determined using the acquisition price of such investment if acquired, or the par value of such investment if originated. Following the initial measurement, fair value is estimated by utilizing or reviewing certain of the following: (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield, debt-service coverage and/or loan-to-value ratios, and (vii) borrower financial condition and performance. The inputs used in estimating the fair value of these preferred equity investments are generally considered Level 3.
Equity Securities. We generally value our investments using the net asset value per share equivalent calculated by the investment manager as a practical expedient to determining an independent fair value or estimates based on various valuation models of third-party pricing services, as well as internal models. We do not categorize within the fair value hierarchy investments as Level 1, Level 2 or Level 3 where fair value is measured using the net asset value per share practical expedient.
As of December 31, 2025, we held one investment in a joint venture partnership, classified as an equity security and measured using the net asset value practical expedient, which develops and operates data center properties in Japan. The joint venture partnership is closed-ended and does not permit investors to redeem their interests. We expect to receive distributions from this joint venture upon liquidation or sale of the underlying assets; however, the timing of these distributions is unknown. We did not hold any equity securities as of December 31, 2024.
DST Program Loans. The estimate of fair value of DST Program Loans takes into consideration various factors including current market rates and conditions and similar agreements with comparable loan-to-value ratios and credit profiles, as applicable. DST Program Loans with near-term maturities are generally valued at par. The inputs used in estimating the fair value of these financial assets are generally considered Level 3.
Financing Obligations. The estimate of fair value of financing obligations takes into consideration various factors including current market rates and conditions, leasing and other activity at the underlying DST Program investments, remaining master lease payments to DST investors, and the current portion of DST Program offerings sold to DST investors. The inputs used in estimating the fair value of these financial liabilities are generally considered Level 3.
The following table summarizes our financial assets measured at fair value on a recurring basis using Level 3 inputs as of December 31, 2025 and 2024:
(in thousands)Investments in
Unconsolidated Joint
Venture Partnerships		Debt-Related
Investments		Available-For-Sale
Debt Securities		DST Program
Loans		Total
Balance as of December 31, 2023$— $— $107,392 $7,753 $115,145 
Purchases and contributions33,952 27,974 — 63,332 125,258 
Paid-in-kind interest, net of repayments— 870 15,517 — 16,387 
Distributions received(128)— — — (128)
Loss on financial assets— — — (17)(17)
Gain on investments in joint venture partnerships5,220 — — — 5,220 
Foreign currency loss on investment(658)— — — (658)
Amortization of loan origination fees (1)— — 278 — 278 
Balance as of December 31, 2024$38,386 $28,844 $123,187 $71,068 $261,485 
Purchases and contributions36,977 105,764 117,878 99,780 360,399 
Paid-in-kind interest, net of repayments— 3,425 (5,594)— (2,169)
Distributions and principal collections received(2,908)— (117,878)— (120,786)
(Loss) gain on financial assets— (176)— 17 (159)
Gain on investments in joint venture partnerships2,097 — — — 2,097 
Foreign currency gain on investment3,151 — — — 3,151 
Amortization of loan origination fees (1)— — 580 — 580 
Balance as of December 31, 2025$77,703 $137,857 $118,173 $170,865 $504,598 
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(1)Included in debt-related income on the consolidated statements of operations.
The following table summarizes our financial liabilities measured at fair value on a recurring basis using Level 3 inputs as of December 31, 2025 and 2024:
(in thousands)Financing
Obligations
Balance as of December 31, 2023$102,045 
DST Interests sold, net of upfront fees774,307 
Unrealized loss on financing obligations2,034 
Balance as of December 31, 2024$878,386 
DST Interests sold, net of upfront fees1,193,105 
Unrealized loss on financing obligations54,776 
Balance as of December 31, 2025$2,126,267 
The following table presents the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of December 31, 2025:
(in thousands)Fair ValueValuation
Technique		Unobservable
Inputs		Impact to Valuation from
an Increase to Input
Assets:
Investments in unconsolidated joint venture partnerships$77,703 Direct CapitalizationCapitalization RateDecrease
Debt-related investments137,857 Yield MethodMarket YieldDecrease
Available-for-sale debt securities (1)118,173 Yield MethodMarket YieldDecrease
DST Program Loans170,865 Yield MethodMarket YieldDecrease
Liabilities:
Financing obligations$2,126,267 Discounted Cash Flow
Discount Rate
Exit Capitalization Rate
Decrease
Decrease
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(1)As of December 31, 2025, the market yield used in determining the fair value of our available-for-sale debt security was 11.0%.
The following table presents the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy as of December 31, 2024:
(in thousands)Fair ValueValuation
Technique		Unobservable
Inputs		Impact to Valuation from
an Increase to Input
Assets:
Investments in unconsolidated joint venture partnerships$38,386 Direct CapitalizationCapitalization RateDecrease
Debt-related investments28,844 Yield MethodMarket YieldDecrease
Available-for-sale debt securities (1)123,187 Yield MethodMarket YieldDecrease
DST Program Loans71,068 Yield MethodMarket YieldDecrease
Liabilities:
Financing obligations$878,386 Discounted Cash Flow
Discount Rate
Exit Capitalization Rate
Decrease
Decrease
___________________________________________________
(1)As of December 31, 2024, the market yield used in determining the fair value of our available-for-sale debt security was 13.3%.
Financial Assets and Liabilities Not Measured at Fair Value
As of December 31, 2025 and 2024, the fair values of cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses and distribution fees payable approximate their carrying values because of the short-term nature of these instruments. The table below includes fair values for certain of our financial instruments for which it is practicable to estimate fair value. The carrying values and fair values of these financial instruments were as follows:
As of December 31, 2025As of December 31, 2024
(in thousands)Level in Fair
Value Hierarchy		Carrying
Value (1)		Fair
Value		Carrying
Value (1)		Fair
Value
Assets:
Debt-related investments (2)3$44,420 $43,219 $384,759 $383,490 
DST Program Loans (2)320,637 20,637 49,785 49,583 
Liabilities:
Line of credit3$744,349 $744,349 $548,228 $548,228 
Term loans31,000,000 1,000,000 800,000 800,000 
Mortgage notes31,256,268 1,254,511 1,368,946 1,340,398 
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(1)The carrying value reflects the principal amount outstanding.
(2)Only includes instruments for which we have not elected the fair value option and do not record at fair value on the consolidated balance sheets.
The initial value of debt-related investments will generally be determined using the acquisition price of such investment if acquired, or the par value of such investment if originated. Following the initial measurement, fair value is estimated by utilizing or reviewing certain of the following: (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield, debt-service coverage and/or loan-to-value ratios, and (vii) borrower financial condition and performance. The estimate of fair value of DST Program Loans, line of credit, term loans, mortgage notes and secured financings on debt-related investments takes into consideration various factors including current market rates and conditions and similar agreements with comparable loan-to-value ratios and credit profiles, as applicable. Debt instruments with near-term maturities are generally valued at par.