Investments in Loans and Financing Receivables

12 Months Ended

Dec. 31, 2025

Investments in Loans and Financing Receivables

A. Loans

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


			December 31, 2025
Loan Type	Maturity	Interest Rates	Principal		Amortized Cost		Allowance		Carrying Amount (2)
Senior Secured Notes Receivable	October 2029 - July 2031	8.00% - SONIA(1) +6.03%	$	1,250.4	$	1,241.3	$	(27.2)	$	1,214.1
Mortgage Loans	June 2028 - September 2038	7.50% - 8.50%	256.2		256.4		(0.2)		256.2
Unsecured and Other Loans	December 2026 - December 2028	10.25% - 11.00%	214.7		214.9		(3.1)		211.8
Total			$	1,721.3	$	1,712.6	$	(30.5)	$	1,682.1

			December 31, 2024
Loan Type	Maturity	Interest Rates	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) Sterling Overnight Indexed Average (“SONIA”)

(2) As of December 31, 2025 and 2024, the total carrying amount of the investment in loans excluded accrued interest of $27.8 million and $13.8 million, respectively, which is presented in 'Other assets, net' on our consolidated balance sheets.

2025 Activity

In July 2025, we acquired EUR-denominated senior secured notes at par value with a principal amount of €100.0 million. The interest-only notes mature in July 2031 and bear interest at a fixed rate of 8.00%.

In July 2025, we acquired GBP-denominated senior secured notes with a principal amount of £200.0 million. The interest-only notes mature in November 2030 and bear interest at SONIA plus a margin ranging from 4.50% to 5.25%, based on the borrower's leverage ratio, and a credit adjustment spread of 0.11%. As of December 31, 2025, the all-in margin was determined to be 5.36%. We paid £197.0 million for the notes and accounted for the discount at amortized cost.

In June 2025, we invested £121.5 million in a mortgage loan secured by an office property in London which provides for additional funding commitments of £20.5 million. The interest-only loan bears a fixed interest rate of 7.50% and matures in June 2030. As of December 31, 2025, the remaining additional funding commitments were £17.8 million.

In June 2025, we invested £40.3 million in a mortgage loan secured by a logistics property in the U.K. which provides for additional funding commitments of £8.5 million. The interest-only loan bears a fixed interest rate of 7.50% and matures in June 2028, with one 12-month extension option available. As of December 31, 2025, the remaining additional funding commitments were £7.5 million.

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.

2024 Activity

In December 2024, we acquired a senior secured note with a principal amount of £200.0 million. The interest-only note matures in November 2030 and bears interest at SONIA plus all-in rate of 5.36%. The Company paid £199.0 million for the note and accounted for the discount at amortized cost.

In September 2024, our interest in a loan with a carrying amount of $5.3 million, which was acquired in conjunction with the Merger, was transferred to a third-party buyer. As a result of this transfer, we recorded a loss of $1.5 million, presented in 'Other income, net' in our consolidated statements of income and comprehensive income.

In May 2024, we acquired a senior secured note, maturing in May 2030, with a principal amount of £300.0 million. The interest-only note bears interest at a fixed rate of 8.125% and is callable at par beginning in May 2026.

In April 2024, a $33.0 million secured loan to an operator of Emagine Theaters, assumed in the Spirit merger, was repaid in full.

In January 2024, in conjunction with the Merger, we acquired an 11.0% fixed-rate, unsecured loan with a principal amount of $11.0 million. This interest-only loan was recorded at its acquisition-date fair value of $9.8 million and matures in December 2026.

2023 Activity

In November 2023, we acquired a senior secured note with a principal amount of £142.0 million. The interest-only note matures in October 2029 and bears interest that has been adjusted to SONIA plus 5.75% and a credit adjustment spread of 0.28% as of December 31, 2025. The Company paid £136.7 million for the note and accounted for the discount at amortized cost.

In October 2023, we issued a $33.5 million mortgage loan which is collateralized by nine automotive service properties located across seven different states. The interest-only loan bears interest at 8.37% subject to annual increases and matures in October 2038.

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


		Carrying Value as of
	Maturity	December 31, 2025		December 31, 2024
Financing receivables, net	2026 - 2050	$	1,574.6	$	1,609.0
Total		$	1,574.6	$	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 through December 31, 2025 (in millions):


	Loans Receivable		Financing Receivable		Total
Allowance for credit losses as of December 31, 2023	$	2.5	$	2.4	$	4.9
Provisions for credit losses (1)	10.0		96.8		106.8
Initial allowance for PCD assets (2)	1.8		—		1.8
Write-offs (2)	(1.8)		—		(1.8)
Foreign currency remeasurement	(0.2)		—		(0.2)
Allowance for credit losses as of December 31, 2024	$	12.3	$	99.2	$	111.5
Provisions for credit losses (1)	17.3		19.5		36.8
Write-offs (3)	—		(40.4)		(40.4)
Foreign currency remeasurement	0.9		0.1		1.0
Allowance for credit losses as of December 31, 2025	$	30.5	$	78.4	$	108.9

(1) Provisions for credit losses on loans receivable during the year ended December 31, 2024 and 2025 were primarily attributable to initial expected credit losses on loans acquired during the respective years. The increase in credit losses on financing receivables during those years were primarily attributable to deterioration in the creditworthiness of certain clients.

(2) Relates to an initial expected credit loss of $1.8 million for a purchased credit deteriorated loan we acquired in conjunction with the Merger and subsequently sold in September 2024.

(3) Write-offs during the year ended December 31, 2025 were related to lease amendments made to facilitate two clients' reorganization plans.