Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of carrying value and fair value of the entity's financial instruments

The carrying value and estimated fair value of our financial instruments as of September 30, 2022 and December 31, 2021 were as follows (in thousands):


	At September 30, 2022					At December 31, 2021
	Carrying		Fair			Carrying		Fair
	Value		Value			Value		Value
Financing receivable, net of credit loss reserve	$	75,507	$	75,507	⁽¹⁾	$	—	$	—
Mortgage loans receivable, net of credit loss reserve		383,006		454,185	⁽²⁾		344,442		405,162	⁽²⁾
Notes receivable, net of credit loss reserve		58,424		62,741	⁽³⁾		28,337		28,653	⁽³⁾
Revolving line of credit		151,000		151,000	⁽⁴⁾		110,900		110,900	⁽⁴⁾
Term loans, net of debt issue costs		99,474		100,000	⁽⁴⁾		99,363		100,000	⁽⁴⁾
Senior unsecured notes, net of debt issue costs		543,287		496,955	⁽⁵⁾		512,456		540,045	⁽⁵⁾

(1)	Our investment in financing receivable is classified as Level 3. At September 30, 2022, the fair value of our financing receivable approximated its carrying value since the asset was acquired during the third quarter of 2022.

(2)

Our investment in mortgage loans receivable is classified as Level 3. The fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash inflows of the mortgage loans receivable at September 30, 2022 and December 31, 2021 was 9.2% and 9.5%, respectively.

(3)

Our investments in notes receivable are classified as Level 3. The discount rate is determined using our assumption on market conditions adjusted for market and credit risk and current returns on our investments. The discount rate used to value our future cash flows of the notes receivable at September 30, 2022 and December 31, 2021, were 6.6% and 5.6%, respectively.

(4)

Our revolving line of credit and term loans bear interest at a variable interest rate. The estimated fair value of our revolving line of credit and term loans approximated their carrying values at September 30, 2022 and December 31, 2021 based upon prevailing market interest rates for similar debt arrangements.

(5)

Our obligation under our senior unsecured notes is classified as Level 3 and thus the fair value is determined using a widely accepted valuation technique, discounted cash flow analysis on the expected cash flows. The discount rate is measured based upon management’s estimates of rates currently prevailing for comparable loans available to us, and instruments of comparable maturities. At September 30, 2022, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.5% for those maturing before year 2030 and 7.0% for those maturing at or beyond year 2030. At December 31, 2021, the discount rate used to value our future cash outflow of our senior unsecured notes was 3.00% for those maturing before year 2030 and 3.25% for those maturing at or beyond year 2030.