Fair Values (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis

The following fair value hierarchy table summarizes the Company’s assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):

	Fair Value Using
			Quoted
			market		Significant
			prices in		other		Significant
			active		observable		unobservable
			markets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
As of June 30, 2022
Recurring basis:
Available-for-sale securities(1)	$	23,254	$	—	$	—	$	23,254
Non-recurring basis:
Real estate, net(2)		811		—		—		811
Held-to-maturity securities(3)		35,000		—		—		35,000
As of December 31, 2021
Recurring basis:
Derivative liabilities(1)	$	8,395	$	—	$	8,395	$	—
Available-for-sale securities(1)		28,092		—		—		28,092

(1) The fair value of the Company’s derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company’s available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3.

(2) The Company recorded a $1.8 million impairment on an operating property with an estimated fair value of $0.8 million. The estimated fair value is based on the cash flows expected to be received.

(3) In the second quarter 2022, the Company received a $40.0 million repayment on a held-to-maturity security. The Company then recorded a $25.0 million charge-off (refer to Note 7) on the held-to-maturity security to record the security at the expected future cash flows to be received.

Summary of changes in Level 3 available-for-sale securities reported at fair value

The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the six months ended June 30, 2022 and 2021 ($ in thousands):

	2022		2021
Beginning balance	$	28,092	$	25,274
Purchases		—		3,375
Repayments		(215)		(201)
Unrealized losses recorded in other comprehensive income		(4,623)		(374)
Ending balance	$	23,254	$	28,074

Schedule of carrying value and fair value of financial instruments

	As of June 30, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Assets
Net investment in leases (refer to Note 5)(1)	$	32	$	32	$	43	$	43
Loans receivable and other lending investments, net(1)		204		204		333		345
Loans receivable held for sale(1)		—		—		43		43
Cash and cash equivalents(2)		1,401		1,401		340		340
Restricted cash(2)		5		5		54		54
Liabilities
Debt obligations, net(1)(3)
Level 1		1,734		1,717		2,473		2,799
Level 3		99		101		99		104
Total debt obligations, net		1,833		1,818		2,572		2,903

(1) The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loans receivable held for sale and certain debt obligations are classified as Level 3 within the fair value hierarchy.

(2) The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy.

(3) As of June 30, 2022 and December 31, 2021, the fair value of the Company’s unsecured notes is classified as Level 1 in the fair value hierarchy. As of June 30, 2022 and December 31, 2021, the fair value of the Company’s 3.125% Senior Convertible Notes was $99.6 million and $527.5 million, respectively (refer to Note 10).