Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Credit Loss [Abstract]

Net Investment in Lease, Allowance for Credit Loss

The following tables detail the allowance for credit losses as of June 30, 2024 and December 31, 2023:

	June 30, 2024
($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases – sales-type	$	23,952,241	$	(762,675)	$	23,189,566	3.18	%
Investments in leases – financing receivables	19,044,531		(706,650)		18,337,881		3.71	%
Investments in loans and securities	1,487,667		(26,469)		1,461,198		1.78	%
Other assets – sales-type sub-leases	865,886		(20,020)		845,866		2.31	%
Totals	$	45,350,325	$	(1,515,814)	$	43,834,511	3.34	%

	December 31, 2023
($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases – sales-type	$	23,717,060	$	(701,129)	$	23,015,931	2.96	%
Investments in leases – financing receivables	18,914,734		(703,632)		18,211,102		3.72	%
Investments in loans and securities	1,173,949		(29,772)		1,144,177		2.54	%
Other assets – sales-type sub-leases	866,052		(18,722)		847,330		2.16	%
Totals	$	44,671,795	$	(1,453,255)	$	43,218,540	3.25	%

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(1) The total allowance excludes the CECL allowance for unfunded commitments of our loans and for unfunded commitments made to our tenants to fund the development and construction of improvements at our properties. As of June 30, 2024 and December 31, 2023, such allowance is $18.7 million and $19.1 million, respectively, and is recorded in Other liabilities.

The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three and six months ended June 30, 2024 and 2023:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2024		2023		2024		2023
Beginning Balance	$	1,578,088	$	1,480,109	$	1,472,386	$	1,368,819
Initial allowance from current period investments	2,231		—		2,914		234,064
Current period change in credit allowance	(45,804)		(40,941)		59,215		(163,715)
Charge-offs	—		—		—		—
Recoveries	—		—		—		—
Ending Balance	$	1,534,515	$	1,439,168	$	1,534,515	$	1,439,168

Financing Receivable Credit Quality Indicators

The following tables detail the amortized cost basis of our investments by the credit quality indicator we assigned to each lease or loan guarantor as of June 30, 2024 and 2023:

	June 30, 2024
(In thousands)	Ba2		Ba3		B1		B2		B3		N/A (2)		Total
Investments in leases – sales-type and financing receivable, Investments in loans and securities and Other assets (1)	$	4,452,810	$	33,172,338	$	3,708,359	$	884,715	$	1,320,293	$	1,811,810	$	45,350,325

	June 30, 2023
(In thousands)	Ba2		Ba3		B1		B2		B3		N/A (2)		Total
Investments in leases – sales-type and financing receivable, Investments in loans and securities and Other assets (1)	$	4,281,667	$	32,778,498	$	3,217,992	$	878,810	$	891,024	$	558,272	$	42,606,263

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(1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments.

(2)We estimate the CECL allowance for our loan investments using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.