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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Measurements

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 June 30, 2023 and December 31, 2022 were as follows (in thousands):


		At June 30, 2023						At December 31, 2022
		Carrying			Fair			Carrying			Fair
		Value			Value			Value			Value
Financing receivable, net of credit loss reserve		$	196,075		$	198,927	⁽¹⁾	$	75,999		$	76,033	⁽¹⁾
Mortgage loans receivable, net of credit loss reserve			471,978			555,283	⁽²⁾		389,728			461,276	⁽²⁾
Notes receivable, net of credit loss reserve			45,949			49,727	⁽³⁾		58,383			61,858	⁽³⁾
Revolving line of credit			326,350			326,350	⁽⁴⁾		130,000			130,000	⁽⁴⁾
Term loans, net of debt issue costs			99,583			100,000	⁽⁴⁾		99,511			100,000	⁽⁴⁾
Senior unsecured notes, net of debt issue costs			527,456			465,751	⁽⁵⁾		538,343			477,653	⁽⁵⁾

(1)

Our investment in financing receivables 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 used to value our future cash inflows of the financing receivables at June 30, 2023 and December 31, 2022 was 7.6%.

(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 June 30, 2023 and December 31, 2022 was 9.1% and 9.3%, 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 June 30, 2023 and December 31, 2022, were 6.4% and 7.1%, 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 June 30, 2023 and December 31, 2022 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 June 30, 2023, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.75% for those maturing before year 2030 and 7.25% for those maturing at or beyond year 2030. At December 31, 2022, the discount rate used to value our future cash outflow of our senior unsecured notes was 6.50% for those maturing before year 2030 and 7.00% for those maturing at or beyond year 2030.