Fair Value of Financial Instruments

12 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

We determine the estimated fair value of financial assets and liabilities using the three-tier fair value hierarchy established by GAAP, which prioritizes observable inputs in active markets when measuring fair value. The three levels of inputs that may be used to measure fair value in order of priority are as follows:

Level 1 — Inputs include quoted prices in active markets for identical assets or liabilities that we have the ability to access.

Level 2 — Inputs include quoted prices in markets that are less active or inactive or for which all significant inputs are observable, either directly or indirectly.

Level 3 — Inputs include unobservable prices and are supported by little or no market activity and are significant to the overall fair value measurement.

As of September 30, 2025 and 2024, the fair values of our financial instruments, which include cash and cash equivalents, amounts due from related parties, accounts payable and accrued expenses and reimbursable accounts payable and accrued expenses, were not materially different from their carrying values due to the short term nature of these financial instruments.

We estimate the fair value of our mortgage notes payable, loans held for investment and outstanding principal balances under our secured financing facility using significant unobservable inputs (Level 3), including discounted cash flow analyses and prevailing market interest rates.

The table below provides information regarding these financial instruments not carried at fair value in our consolidated balance sheet as of September 30, 2025:

	As of September 30, 2025				As of September 30, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Loans held for investment	$	60,984	$	61,989	$	56,221	$	57,365
Secured financing facility	44,586		45,471		41,109		41,793
Mortgage notes payable (1)	136,168		137,076		45,149		46,520

(1)Includes two mortgage notes payable with an aggregate carrying value of $90,739 that carry interest at a rate of SOFR plus a premium. The carrying values of these mortgage notes approximate fair value.

On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. ASC 820, Fair Value Measurements, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities, or Level 1, the lowest priority to unobservable inputs, or Level 3, and significant other observable inputs, or Level 2. A financial asset’s or financial liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The following tables present our financial assets and liabilities that have been measured at fair value on a recurring basis:

	As of September 30, 2025
	Total		Level 1		Level 2		Level 3
Due from related parties related to share based payment awards	$	15,797	$	15,797	$	—	$	—
Investment in SEVN	17,610		17,610		—		—
Investment in Fund VII	3,156		—		—		3,156
Investment in joint ventures	11,134		—		—		11,134
Employer compensation liability related to share based payment awards	15,797		15,797		—		—
Interest rate caps	1,758		—		1,758		—
Earnout liability	3,639		—		—		3,639

	As of September 30, 2024
	Total		Level 1		Level 2		Level 3
Due from related parties related to share based payment awards	$	14,339	$	14,339	$	—	$	—
Investment in SEVN	23,520		23,520		—		—
Employer compensation liability related to share based payment awards	14,339		14,339		—		—
Earnout liability	11,958		—		—		11,958

The fair values of our interest rate caps are based on prevailing market prices in secondary markets for similar derivative contracts as of the measurement date.

The following tables present additional information about the valuation techniques and significant unobservable inputs for financial assets and liabilities that are measured at fair value and categorized within Level 3 as of September 30, 2025:

	As of September 30, 2025
	Fair Value		Valuation Technique	Unobservable Input	Range
Investment in Fund VII	$	3,156	Discounted cash flow	Discount rates	6.50% - 7.00%
				Exit capitalization rates	5.00% - 5.50%
				Holding period	10 years
Investment in joint ventures	$	11,134	Discounted cash flow	Unlevered IRR	12.02% - 12.37%
				Exit capitalization rates	4.97% - 5.15%
				Holding period	3 years
Earnout liability	$	3,639	Monte Carlo	Capital deployment volatility	15.00%
				Discount rate	5.84%

	As of September 30, 2024
	Fair Value		Valuation Technique	Unobservable Input	Range
Earnout liability	$	11,958	Monte Carlo	Capital deployment volatility	15.00%
				Discount rate	5.53%

The tables below present a summary of the changes in fair value for our investment in Fund VII and Earnout liability measured on a recurring basis:

	Fiscal Year Ended		Fiscal Year Ended
Investment in Fund VII	September 30, 2025		September 30, 2024
Beginning balance	$	—	$	—
Changes in fair value for our investment in Fund VII	3,156		—
Ending balance	$	3,156	$	—