Investments in Loans and Financing Receivables

6 Months Ended

Jun. 30, 2025

Investments in Loans and Financing Receivables

A. Loans

The following table presents information about our loans as of June 30, 2025 and December 31, 2024 (dollars in millions):


			June 30, 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%	$	880.4	$	874.2	$	(11.7)	$	862.5
Mortgage Loans (3)(4)	June 2028 - September 2038	7.50% - 8.37%	255.4		255.6		(0.1)		255.5
Unsecured and Other Loans (5)	December 2026 - December 2028	10.25% - 11.00%	214.7		214.8		(3.0)		211.8
Total			$	1,350.5	$	1,344.6	$	(14.8)	$	1,329.8

			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 June 30, 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 June 30, 2025 and December 31, 2024, the total carrying amount of the investment in loans excludes accrued interest of $17.4 million and $13.8 million, respectively, which is presented in 'Other assets, net' on our consolidated balance sheets.

(3) In June 2025, we invested £121.5 million, equivalent to $166.6 million as of June 30, 2025, in a mortgage loan secured by an office property in London. The interest-only loan bears a fixed interest rate of 7.50% and matures in June 2030. The loan includes additional funding commitments of £20.5 million over the next two years.

(4) In June 2025, we invested £40.3 million, equivalent to $55.3 million as of June 30, 2025, in a mortgage loan secured by a logistics property in the U.K. The interest-only loan bears a fixed interest rate of 7.50% and matures in June 2028, with one 12-month extension option available. The loan includes additional funding commitments of £8.5 million over the next three years.

(5) In February 2025, we invested in a $200.0 million 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.

B. Financing Receivables

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 June 30, 2025 and December 31, 2024 (dollars in millions):


		Carrying Value as of
	Maturity	June 30, 2025		December 31, 2024
Financing receivables, net	2026 - 2048	$	1,588.7	$	1,609.0
Total		$	1,588.7	$	1,609.0

C. Allowance for Credit Losses

The following table summarizes the activity within the allowance for credit losses related to loans and financing receivable for the three and six months ended June 30, 2025 (in millions):


	Loans Receivable		Financing Receivable		Total
Three months ended June 30, 2025
Allowance for credit losses at March 31, 2025	$	14.1	$	116.9	$	131.0
Provisions for credit losses	(0.1)		1.2		1.1
Write-offs (1)	—		(31.1)		(31.1)
Foreign currency remeasurement	0.8		—		0.8
Allowance for credit losses at June 30, 2025	$	14.8	$	87.0	$	101.8

Six months ended June 30, 2025
Allowance for credit losses at December 31, 2024	$	12.3	$	99.2	$	111.5
Provisions for credit losses (2)	1.4		18.9		20.3


Write-offs (1)	—		(31.1)		(31.1)
Foreign currency remeasurement	1.1		—		1.1
Allowance for credit losses at June 30, 2025	$	14.8	$	87.0	$	101.8

(1) For the three and six months ended June 30, 2025, write-offs were related to lease amendments made to facilitate a client's reorganization plan.

(2) For the six months ended June 30, 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 of certain clients.