Fair Value Measurements

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Recurring Fair Value Measurements

The following tables present the fair value of those assets and (liabilities) measured on a recurring basis as of September 30, 2025 and December 31, 2024, (in thousands):

		Fair Value Measurements at
		September 30, 2025
	Consolidated Balance Sheet Location	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivative financial instruments - interest rate swaps	Prepaid expenses and other assets	$	2,521	$	—	$	2,521	$	—
Liabilities
Derivative financial instruments - interest rate swaps	Accrued and other liabilities	$	(1,476)	$	—	$	(1,476)	$	—

		Fair Value Measurements at
		December 31, 2024
	Consolidated Balance Sheet Location	Total		Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Derivative financial instruments - interest rate swaps	Prepaid expenses and other assets	$	7,378	$	—	$	7,378	$	—

Derivative Financial Instruments: The Company records its interest rate swaps at fair value. The fair values of the Company's interest rate swaps are classified as Level 2 measurements in the fair value hierarchy and are based on the estimated amounts that the Company would receive or pay to terminate the contracts at the reporting date and are determined using interest rate pricing models and interest rate related observable inputs (refer to Note 7 – Derivative Instruments for fair value information regarding the Company's derivative instruments).

Non-Recurring Fair Value

Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The Company’s process for identifying and recording impairment is discussed in Note 2 to the consolidated financial statements included in Item 8 of the Company's 2024 Form 10-K.

Investments in sales-type leases, net: The Company's net investment in sales-type lease assets are recorded at the estimated fair value as of the respective lease commencement dates. The fair value of sales-type leases is generally estimated utilizing Level 3 inputs to discount the estimated future cash flows of the lease, including any guaranteed or unguaranteed estimated residual value of the asset at the end of the lease, using the rate implicit in the lease. Refer to Note 10 – Leases - The Company as a Lessor for additional discussion of the Company's investment in sales-type leases.

Assets held for sale, net: As of September 30, 2025, one subdivided unit at a CRE improved property met the criteria for classification as held for sale and accordingly, was measured at its fair value less costs to sell. The fair value was in excess of the carrying value and accordingly, no fair value adjustment related to assets and liabilities held for sale was required. The Company classifies these fair value measurements as Level 3 in the fair value hierarchy because they are determined using significant unobservable inputs such as management assumptions about expected sales proceeds from third parties. Refer to Note 3 – Real Estate Transactions for discussion of the transaction giving rise to the subdivided unit's classification as held for sale. Refer to Note 17 – Held for Sale for information related to the major classes of assets and liabilities that were classified as held for sale as of the balance sheet date.

Financial Assets and Liabilities not Measured at Fair Value

Financial assets and liabilities that are not measured at fair value on our condensed consolidated balance sheets include cash and cash equivalents, restricted cash, accounts and notes receivable, other receivables, notes payable and other debt, accounts payable, refund liability, and accrued dividends. The fair value of the Company's cash and cash equivalents, restricted cash, accounts receivable, other receivables, accounts payable, and accrued dividends approximate their carrying values due to the short-term nature of the instruments, and are classified as Level 1 measurement in the fair value hierarchy.

The fair value of the Company's notes receivable approximated the carrying amount of $2.8 million and $13.1 million as of September 30, 2025 and December 31, 2024, respectively. The fair value of these notes is estimated using a discounted cash flow analysis in which the Company uses unobservable inputs such as market interest rates determined by the loan-to-value and market capitalization rates related to the underlying collateral at which management believes similar loans would be made, and is classified as a Level 3 measurement in the fair value hierarchy.

At September 30, 2025, the carrying amount of the Company's notes payable and other debt was $475.2 million and the corresponding fair value was $480.1 million. At December 31, 2024, the carrying amount of the Company's notes payable and other debt was $474.8 million and the corresponding fair value was $468.4 million. The fair value of debt is calculated by discounting the future cash flows of the debt at rates based on instruments with similar risk, terms and maturities as compared to the Company's existing debt arrangements, and is classified as a Level 3 measurement in the fair value hierarchy.

At September 30, 2025, the carrying amount of the Company's refund liability was $45.3 million and the corresponding fair value was $41.3 million. The fair value of the refund liability is calculated by discounting the future cash flows of the refund liability at rates based on instruments with similar risk, terms and maturities as compared to the Company's existing debt arrangements, and is classified as a Level 3 measurement in the fair value hierarchy.