Fair Value

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value

10. FAIR VALUE:

Fair Value of Financial Instruments:

The fair value of the Company’s financial instruments is determined based upon applicable accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2), and significant valuation assumptions that are not readily observable in the market (Level 3).

The fair values of cash and cash equivalents, restricted cash, rent and other receivables, dividends payable, accounts payable and accrued expenses approximated their carrying value because of the short-term nature based on Level 1 inputs. The fair values of mortgage notes payable are based on the discounted cash flow method using current treasury rates and commercial loan spreads, which are Level 2 inputs. The fair values of secured revolving credit facility and term loan payable are based on borrowing rates available to the Company, which are Level 2 inputs. The carrying values of term loan payable and mortgage notes payable are stated at their principal balances below. The following table summarizes the carrying values and the estimated fair values of the financial instruments (in thousands):

	December 31, 2024				December 31, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Value		Value		Value
Financial assets:
Cash and cash equivalents	$	29,380	$	29,380	$	27,913	$	27,913
Restricted cash		143		143		1,400		1,400
Rent and other receivables		1,285		1,285		569		569
Financial liabilities:
Dividends payable	$	1,601	$	1,601	$	1,333	$	1,333
Accounts payable and accrued expenses		5,800		5,800		5,234		5,234
Secured revolving credit facility		18,400		18,400		40,000		40,000
Term loan payable		—		—		50,000		50,000
Mortgage notes payable		486,822		455,082		379,187		345,009