Investments in Loans and Financing Receivables (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Loans Receivable and Financing Receivables


A.	Accounts receivable, net, consist of the following at:	March 31, 2025		December 31, 2024
	Straight-line rent receivables, net	$	746,757	$	694,844
	Client receivables, net	205,653		182,824
		$	952,410	$	877,668

The following table presents information about our loans as of March 31, 2025 and December 31, 2024 (dollars in millions):


			March 31, 2025
	Maturity	Interest Rates (1)	Principal		Amortized Cost		Allowance		Carrying Amount (2)
Senior Secured Notes Receivable	October 2029 - November 2030	8.125% - SONIA+5.75%	$	830.5	$	824.2	$	(11.8)	$	812.4
Mortgage Loan	September 2038	8.37%	33.5		33.5		—		33.5
Unsecured and Other Loans (3)	December 2026 - December 2028	10.25% - 11.00%	211.0		211.1		(2.3)		208.8
Total			$	1,075.0	$	1,068.8	$	(14.1)	$	1,054.7

			December 31, 2024
	Maturity	Interest Rates (1)	Principal		Amortized Cost		Allowance		Carrying Amount (2)
Senior Secured Notes Receivable	October 2029 - November 2030	8.125% - SONIA+5.75%	$	803.7	$	797.2	$	(11.4)	$	785.8
Mortgage Loan	September 2038	8.37%	33.5		33.5		—		33.5
Unsecured Loan	December 2026	11.00%	11.0		10.1		(0.9)		9.2
Total			$	848.2	$	840.8	$	(12.3)	$	828.5

(1) As of March 31, 2025 and December 31, 2024, we held two interest-only notes bearing interest at Sterling Overnight Indexed Average (“SONIA”) plus a margin.

(2) As of March 31, 2025 and December 31, 2024, the total carrying amount of the investment in loans excludes accrued interest of $29.4 million and $13.8 million, respectively, which is presented in 'Other assets, net' on our consolidated balance sheets.

(3) In February 2025, we invested $200.0 million in a loan, maturing in December 2028 with two 12-month extension options. This interest-only loan bears interest at either a cash rate of 10.25% or a payment-in-kind rate of 10.75%. We paid $199.8 million for this loan and incurred $1.1 million in origination costs. The discount and deferred costs are being amortized over the loan term.

The following table presents information about our investments in sale-leaseback transactions accounted for as financing receivables in accordance with ASC 842, Leases as of March 31, 2025 and December 31, 2024 (dollars in millions):


		Carrying Value as of
	Maturity	March 31, 2025		December 31, 2024
Financing receivables, net	2028 - 2048	$	1,582.8	$	1,609.0
Total		$	1,582.8	$	1,609.0

Schedule of Allowance for Credit Losses Related to Loans and Financing Receivable

The following table summarizes the activity within the allowance for credit losses related to loans and financing receivable for the three months ended March 31, 2025 (in millions):


	Loans Receivable		Financing Receivable		Total
Allowance for credit losses at December 31, 2024	$	12.3	$	99.2	$	111.5
Provisions for credit losses (1)	1.5		17.7		19.2


Foreign currency remeasurement	0.3		—		0.3
Allowance for credit losses at March 31, 2025	$	14.1	$	116.9	$	131.0

(1) For the three months ended March 31, 2025, the provisions for credit losses on loans receivable were primarily due to initial expected credit losses on a loan acquired in February 2025. The increase in credit losses on financing receivables was largely attributable to deterioration in the creditworthiness on certain clients.