FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of carrying value and estimated fair value of financial instruments

The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the consolidated balance sheets at March 31, 2021 and December 31, 2020 (in thousands):

	March 31, 2021				December 31, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Cash and Cash Equivalents - Level 1	$	4,691	$	4,691	$	4,289	$	4,289
Restricted Cash - Level 1	$	609	$	609	$	29,536	$	29,536
Commercial Loan and Master Lease Investments - Level 2	$	38,417	$	38,428	$	38,320	$	38,318
Long-Term Debt - Level 2	$	280,248	$	285,735	$	273,830	$	282,884

Schedule of fair value of assets measured on recurring basis by Level

The following table presents the fair value of assets (liabilities) measured on a recurring basis by level as of March 31, 2021 and December 31, 2020 (in thousands):

			Fair Value at Reporting Date Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2021
Cash Flow Hedge - Interest Rate Swap - BMO (1)	$	(965)	$	—	$	(965)	$	—
Cash Flow Hedge - Interest Rate Swap - BMO (2)	$	292	$	—	$	292	$	—
Investment Securities	$	35,408	$	35,408	$	—	$	—
December 31, 2020
Cash Flow Hedge - Interest Rate Swap - BMO (1)	$	(1,772)	$	—	$	(1,772)	$	—
Cash Flow Hedge - Interest Rate Swap - BMO (2)	$	(50)	$	—	$	(50)	$	—
Cash Flow Hedge - Interest Rate Swap - Wells Fargo (3)	$	(88)	$	—	$	(88)	$	—
Investment Securities	$	30,574	$	30,574	$	—	$	—

⁽¹⁾ Effective March 31, 2020, utilized interest rate swap to achieve fixed interest rate of 0.7325% plus the applicable spread on $100.0 million of the outstanding principal balance on the Credit Facility.

⁽²⁾ Effective March 10, 2021, the Company redesignated the interest rate swap utilized to achieve a fixed interest rate of 0.2200% plus the applicable spread on the $50.0 million of the outstanding principal balance under the Credit Facility to the Term Loan. The interest rate swap was entered into as of August 31, 2020.

⁽³⁾ Effective March 12, 2021, in connection with the payoff of the $23.2 million variable-rate mortgage loan secured by Wells Fargo Raleigh, the interest rate swap was terminated.