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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023 were as follows (in thousands):


		At March 31, 2024						At December 31, 2023
		Carrying			Fair			Carrying			Fair
		Value			Value			Value			Value
Financing receivables, net of credit loss reserve		$	196,010		$	199,381	⁽¹⁾	$	196,032		$	199,199	⁽¹⁾
Mortgage loans receivable, net of credit loss reserve			480,250			564,493	⁽²⁾		477,266			554,993	⁽²⁾
Notes receivable, net of credit loss reserve			59,946			67,278	⁽³⁾		60,490			67,877	⁽³⁾
Revolving line of credit			277,050			277,050	⁽⁴⁾		302,250			302,250	⁽⁴⁾
Term loans, net of debt issue costs			99,695			100,000	⁽⁴⁾		99,658			100,000	⁽⁴⁾
Senior unsecured notes, net of debt issue costs			483,466			435,801	⁽⁵⁾		489,409			439,865	⁽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 March 31, 2024 and December 31, 2023 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 March 31, 2024 and December 31, 2023 was 9.2%.

(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 March 31, 2024 and December 31, 2023 was 6.9%.

(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 March 31, 2024 and December 31, 2023 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 March 31, 2024, 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 6.75% for those maturing at or beyond year 2030. At December 31, 2023, 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 6.75% for those maturing at or beyond year 2030.