Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and December 31, 2023.


	September 30, 2024
(In thousands)			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:

Derivative instruments – forward-starting interest rate swaps (1)	$	745	$	—	$	745	$	—
Financial liabilities:
Derivative instruments - forward-starting interest rate swaps (1)	$	3,459	$	—	$	3,459	$	—


	December 31, 2023
(In thousands)			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial assets:

Derivative instruments – forward-starting interest rate swaps (1)	$	1,563	$	—	$	1,563	$	—
Financial liabilities:
Derivative instruments - forward-starting interest rate swaps (1)	$	11,218	$	—	$	11,218	$	—

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(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.

Schedule of Estimated Fair Value

The estimated fair values of our financial instruments as of September 30, 2024 and December 31, 2023 for which fair value is only disclosed are as follows:


	September 30, 2024				December 31, 2023
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Investments in leases – financing receivables (1)	$	18,410,105	$	17,769,698	$	18,211,102	$	17,717,435
Investments in loans and securities (2)	1,550,680		1,461,516		1,144,177		1,060,249
Cash and cash equivalents	355,667		355,667		522,574		522,574

Financial liabilities:
Debt (3)
Revolving Credit Facility	167,704		167,704		173,804		173,804
MGM Grand/Mandalay Bay CMBS Debt	2,793,787		2,775,600		2,773,758		2,627,984
Senior Unsecured Notes	13,782,093		13,864,637		13,776,563		13,469,176

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(1)Represents our asset acquisitions structured as sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have been transferred to us, such lease agreements are accounted for as financings under ASC 310. Except as noted below, 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 master lease agreement for the Bowlero portfolio and the lease agreement for Chelsea Piers, 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)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.