Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value, Net Derivative Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes our assets and liabilities measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022:


	June 30, 2023
(In thousands)			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:
Derivative instruments - forward-starting interest rate swaps (1)	$	1,310	$	—	$	1,310	$	—
Financial liabilities:
Derivative instruments - forward-starting interest rate swaps (1)	1,130		—		1,130		—


	December 31, 2022
(In thousands)			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:

Short-term investments (2)	$	217,342	$	—	$	217,342	$	—

___________________

(1) The fair values of our interest rate swap derivative instruments were estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising interest rate curves and credit spreads, which are Level 2 measurements as defined under ASC 820.

(2) The carrying value of these investments is equal to their fair value due to the short-term nature of the investments as well as their credit quality.

Schedule of Estimated Fair Value

The estimated fair values of our financial instruments as of June 30, 2023 and December 31, 2022 for which fair value is only disclosed are as follows:


	June 30, 2023				December 31, 2022
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Investments in leases - financing receivables (1)	$	17,144,528	$	17,797,191	$	16,740,770	$	17,871,771
Investments in loans and securities (2)	627,259		606,108		685,793		675,456
Cash and cash equivalents	738,793		738,793		208,933		208,933

Financial liabilities:
Debt (3)
Revolving Credit Facility	105,728		105,728		—		—
MGM Grand/Mandalay Bay CMBS Debt	2,760,388		2,747,877		—		—
Senior Unsecured Notes	13,758,081		13,073,694		13,739,675		13,020,636

____________________

(1)These investments represent the JACK Master Lease, the Harrah’s Call Properties, the MGM Master Lease, the Foundation Master Lease, Mirage Lease, Gold Strike Lease and the PURE Master Lease. In relation to the Harrah’s Call Properties, JACK Master Lease, Mirage Lease, Gold Strike Lease and MGM Master Lease the fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to the Foundation Master Lease and PURE Master Lease, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets.

(2)These investments represent our investments in eleven senior secured and mezzanine loans and one series of senior secured notes. The fair value of investments in loans is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. The fair value of our senior secured notes was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.

(3)The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.