Fair Value Measurements

6 Months Ended

Jun. 30, 2026

Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an

orderly transaction between market participants at the measurement date (the exit price).

ASC 820, Fair Value Measurements and Disclosures, sets forth a fair value hierarchy that categorizes inputs to

valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted

prices in active markets for identical assets or liabilities and lowest priority to unobservable inputs. Categorization

within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

•Level 1 – Quoted market prices in active markets for identical assets and liabilities

•Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities,

quoted prices in markets that are not active, or other market-corroborated inputs

•Level 3 – Inputs that are unobservable and significant to the overall fair value measurement

We evaluate our hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or

liability may be classified differently from period to period. Changes in the type of inputs may result in a

reclassification for certain assets. We have not historically had changes in classifications and do not expect that

changes in classifications between levels will be frequent.

The following tables present the carrying values and estimated fair values of financial instruments as of June 30,

2026 and December 31, 2025 (in millions):


	June 30, 2026
		Hierarchy Level
	Carrying Value	Level 1	Level 2	Level 3
Assets:
Loans receivable	$3,297.6	$—	$1,368.0	$1,966.7
Derivative assets	70.4	—	70.4	—
Total assets	$3,368.0	$—	$1,438.4	$1,966.7
Liabilities:
Term loans (1)	$2,774.9	$—	$2,071.9	$732.3
Mortgages payable (1)	37.0	—	—	36.7
Notes and bonds payable (1)	25,416.1	—	23,495.9	1,033.2
Derivative liabilities	160.4	—	160.4	—
Total liabilities	$28,388.4	$—	$25,728.2	$1,802.2

(1) Excludes non-cash net premiums and discounts, and deferred financing costs.


	December 31, 2025
		Hierarchy Level
	Carrying Value	Level 1	Level 2	Level 3
Assets:
Loans receivable	$1,682.1	$—	$1,210.5	$474.3
Derivative assets	8.0	—	8.0	—
Total assets	$1,690.1	$—	$1,218.5	$474.3
Liabilities:
Term loans	$1,711.0	$—	$1,711.0	$—
Mortgages payable	37.9	—	—	37.6
Notes and bonds payable	25,343.8	—	23,600.7	1,046.8
Derivative liabilities	205.7	—	205.7	—
Total liabilities	$27,298.4	$—	$25,517.4	$1,084.4

A.Financial Instruments Not Measured at Fair Value on our Consolidated Balance Sheets

The fair value of short-term financial instruments such as cash and cash equivalents, accounts receivable, escrow

deposits, accounts payable, distributions payable, revolving credit facilities and commercial paper borrowings, and

other liabilities approximate their carrying value in the accompanying consolidated balance sheets, due to their

short-term nature.

The following table reflects the carrying amounts and estimated fair values of our financial instruments not

measured at fair value on our consolidated balance sheets (in millions):


	June 30, 2026		December 31, 2025
	Carrying value	Fair value	Carrying value	Fair value
Loans receivable	$3,297.6	$3,334.7	$1,682.1	$1,684.8
Term loans (1)	$2,774.9	$2,804.2	$1,711.0	$1,711.0
Mortgages payable (1)	$37.0	$36.7	$37.9	$37.6
Notes and bonds payable (1)	$25,416.1	$24,529.1	$25,343.8	$24,647.5

(1) Excludes non-cash net premiums and discounts, and deferred financing costs.

The estimated fair values of our mortgage loans receivable, unsecured and other loans, private senior secured

loans receivable, our 2026 Term Loan Facility, mortgages payable, and private senior notes payable have been

calculated by discounting the future cash flows using an interest rate based upon the relevant input, such as forward

interest rate curve, plus an applicable credit-adjusted spread. Because this methodology includes unobservable

inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values related

to the named financial instruments are categorized as level 3 of the fair value hierarchy.

The estimated fair values of our publicly-traded senior secured loans receivable, publicly-traded senior notes and

bonds payable, and other term loans as discussed in note 7, Term Loans are based upon indicative market prices

and recent trading activity of each financial instrument. Because this methodology includes inputs that are less

observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair

values related to these financial instruments is categorized as level 2 of the fair value hierarchy. The fair value

estimation of secured loans receivable that are not publicly traded similarly incorporates less observable, market-

corroborated inputs.

Prior to the second quarter of 2026, the aggregate fair value of our term loans approximated carrying value due to

the frequent repricing of the variable interest rate charged on the borrowing.

B.Financial Instruments Measured at Fair Value on a Recurring Basis

For derivative assets and liabilities, we may utilize interest rate swaps, interest rate swaptions, and forward-starting

swaps to manage interest rate risk, and cross-currency swaps and foreign currency forwards to manage foreign

currency risk. The valuation of these instruments is determined using widely accepted valuation techniques,

including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the

contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs,

including interest rate curves, spot and forward rates, as well as option volatility.

Derivative fair values also include credit valuation adjustments to appropriately reflect both our own nonperformance

risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair

value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and

any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

Although we have determined that the majority of the inputs used to value our derivatives fall within level 2 on the

fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize level 3 inputs, such as

estimates of current credit spreads, to evaluate the likelihood of default by ourselves and our counterparties.

However, as of June 30, 2026 and December 31, 2025, we assessed the significance of the impact of the credit

valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation

adjustments are not significant to the overall valuation of our derivatives. As a result, we determined that our

derivative valuations in their entirety are classified as level 2. For more details on our derivatives, see note 11,

Derivative Instruments.

C.Items Measured at Fair Value on a Non-Recurring Basis

Impairment of Real Estate Investments

Certain financial and nonfinancial assets and liabilities are measured at fair value on a non-recurring basis and are

subject to fair value adjustments only under certain circumstances, such as when an impairment write-down occurs.

Depending on impairment triggering events during the applicable period, impairments are typically recorded for

properties sold, in the process of being sold, vacant, in bankruptcy, or experiencing difficulties with collection of rent.

The following table summarizes our provisions for impairment on real estate investments during the periods

indicated below (dollars in millions):


	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
Carrying value prior to impairment	$191.1	$365.2	$413.9	$505.9
Less: total provisions for impairment of real estate	(54.2)	(142.3)	(144.4)	(239.7)
Carrying value after impairment	$136.9	$222.9	$269.5	$266.2

Number of properties:
Classified as held for sale	22	58	28	61
Classified as held for investment	36	53	79	79
Sold	15	8	59	60

The valuation of impaired assets is determined by using widely accepted valuation techniques including income

capitalization approach, using net operating income for each property and applying a weighted average

capitalization rate of 8.6%, recent comparable sales transactions, broker opinions of value with discounts based on

management judgment, and purchase offers received from third parties, which are level 3 inputs. We may consider

a single valuation technique or multiple valuation techniques, as appropriate, when estimating the fair value of such

real estate. Estimating future cash flows is highly subjective and estimates can differ materially from actual results.