Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis

The following table presents financial assets that were accounted for at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 by level within the fair value hierarchy (dollars in thousands):

	June 30, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Other assets - PE Investments	$	—	$	—	$	2,790	$	2,790	$	—	$	—	$	3,035	$	3,035
Other assets - derivative assets	—		2,355		—		2,355		—		1,601		—		1,601

Schedule of Changes in Level 3

The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the six months ended June 30, 2023 and 2022 (dollars in thousands):

	Six Months Ended June 30,
	2023		2022
	Other assets - PE Investments		Other assets - PE Investments		Mortgage loans held in securitization trusts(1)
Beginning balance	$	3,035	$	4,406	$	813,310
Distributions/paydowns	(245)		—		(15,946)
Unrealized loss in earnings	—		—		(79,029)
Ending balance	$	2,790	$	4,406	$	718,335

_________________________________________

(1)For the six months ended June 30, 2022, the Company recorded an unrealized loss of $79.0 million related to mortgage loans held in securitization trusts, at fair value and an unrealized gain of $79.0 million related to mortgage obligations held in securitization trusts, at fair value.

Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities

The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of June 30, 2023 and December 31, 2022 (dollars in thousands):

	June 30, 2023						December 31, 2022
	Principal Amount		Carrying Value		Fair Value		Principal Amount		Carrying Value		Fair Value
Financial assets:(1)
Loans held for investment, net(2)	$	3,225,635	$	3,112,973	$	3,118,907	$	3,586,248	$	3,468,472	$	3,480,001
Financial liabilities:(1)
Securitization bonds payable, net	$	995,187	$	992,583	$	995,187	$	1,172,717	$	1,167,600	$	1,172,717
Mortgage and other notes payable, net	646,477		644,891		620,611		656,568		656,468		656,568
Master repurchase facilities	1,217,251		1,217,251		1,217,251		1,339,993		1,339,993		1,339,993

_________________________________________

(1)The fair value of other financial instruments not included in this table is estimated to approximate their carrying value.

(2)Excludes future funding commitments of $225.6 million and $263.4 million as of June 30, 2023 and December 31, 2022, respectively.

Fair Value Measurements, Nonrecurring

he following tables summarize assets carried at fair value on a nonrecurring basis as of June 30, 2023 and December 31, 2022 (dollars in thousands):

	June 30, 2023
	Level 1		Level 2		Level 3		Total
Loans held for investment, net	$	—	$	—	$	41,000	$	41,000

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Loans held for investment, net	$	—	$	—	$	79,596	$	79,596