Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair value measurements

Schedule of fair value of assets and liabilities

The following tables present estimated fair values of our financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated:

	June 30, 2021				Fair Value Measurements Using
	Carrying		Estimated
(dollars in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	164,023	$	164,023	$	164,023	$	—	$	—
Mortgage notes receivable, net		814,454		814,454		—		—		814,454
Financial Liabilities
Accounts payable and accrued liabilities (1)		8,542		8,542		—		4,808		3,734

(1)As of June 30, 2021, includes the level 3 valuation of the private placement warrant liability derivative measured at fair value on a recurring basis.

	December 31, 2020				Fair Value Measurements Using
	Carrying		Estimated
(dollars in thousands)	Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	223,375	$	223,375	$	223,375	$	—	$	—
Mortgage notes receivable, net		798,486		798,486		—		—		798,486

Schedule of valuation methodologies and inputs used for assets that are measured at fair value

The following table sets forth assets and liabilities measured and reported at fair value on a recurring and nonrecurring basis, as well as for which fair value is only disclosed, as of June 30, 2021 and December 31, 2020. All of these fair values are categorized as Level 3. The table also contains information about valuation methodologies and inputs used for assets that are measured at fair value and categorized within Level 3 as of June 30, 2021 and December 31, 2020:

	Level 3				Valuation	Unobservable	Range of
(dollars in thousands)	June 30, 2021		December 31, 2020		technique	inputs	inputs
Private Placement Warrants(1)	$	3,734	$	-	Valuation model	Equity volatility of underlying stock price	0 - 25%
Real property(2)		41,725		8,473	Collateral valuations	Discount to appraised value based on comparable market prices	0 - 10%
Collateral dependent loans, net of allowance for credit losses(3)		37,242		30,920	Collateral valuations	Discount to appraised value based on comparable market prices	0 - 10%
Total	$	82,701	$	39,393

(1)Private placement warrant liability derivative measured at fair value on a recurring basis.

(2)Real property is stated at lower of cost or fair value, a non-recurring measurement of fair value.

(3)Loans meeting the definition of collateral dependent are measured at the fair value less the costs to sell the underlying property. The carrying value of the collateral dependent loans, net of the allowance for credit losses, approximates fair value.