Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2023

Note 13. Fair Value of Assets and Liabilities

The table below presents certain of our assets carried at fair value at December 31, 2023, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.


			Fair Value at Reporting Date Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Non-recurring Fair Value Measurements Assets:
Assets of properties held for sale (1)	$	10,446	$	—	$	—	$	10,446

(1) We recorded a loss on asset impairment, net of $3,206 during the year ended December 31, 2023, to reduce the carrying value of one hotel and nine net lease properties in our consolidated balance sheets to their estimated fair value less costs to sell based on brokers’ opinion of values (Level 3 inputs as defined in the fair value hierarchy under GAAP).

In addition to the assets included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, revolving credit facility, net lease mortgage notes, senior notes and security deposits. At December 31, 2023 and 2022, the fair values of these financial instruments approximated their carrying values in our consolidated balance sheets due to their short-term nature or floating interest rates, except as follows:


	December 31, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value (1)		Value		Value (1)		Value
Senior Unsecured Notes, due 2023 at 4.50%	$	—	$	—	$	499,925	$	491,345
Senior Unsecured Notes, due 2024 at 4.65%	—		—		349,510		334,292
Senior Unsecured Notes, due 2024 at 4.35%	—		—		822,487		749,983
Senior Unsecured Notes, due 2025 at 4.50%	349,181		341,688		348,493		301,893
Senior Unsecured Notes, due 2025 at 7.50%	796,007		808,888		793,673		762,344
Senior Unsecured Notes, due 2026 at 5.25%	347,601		339,780		346,472		292,282
Senior Unsecured Notes, due 2026 at 4.75%	448,347		419,909		447,736		354,128
Senior Unsecured Notes, due 2027 at 4.95%	397,672		362,108		396,916		315,040
Senior Unsecured Notes, due 2027 at 5.50%	445,631		412,002		444,505		387,522
Net Lease Mortgage Notes, due 2028 at 5.60%	558,876		585,784		—		—
Senior Unsecured Notes, due 2028 at 3.95%	395,355		327,708		394,206		283,996
Senior Unsecured Notes, due 2029 at 4.95%	420,477		351,726		419,684		293,718
Senior Unsecured Notes, due 2030 at 4.375%	393,056		310,524		391,923		264,280
Senior Secured Notes, due 2031 at 8.625%	968,017		1,047,430		—		—
Total financial liabilities	$	5,520,220	$	5,307,547	$	5,655,530	$	4,830,823

(1)Carrying value includes unamortized discounts, premiums and certain debt issuance costs.

At December 31, 2023 and 2022, we estimated the fair values of our senior notes using an average of the bid and ask price of our then outstanding issuances of senior notes (Level 2 inputs). At December 31, 2023, we estimated the fair value of our net lease mortgage notes using discounted cash flow analyses and current prevailing market rates as of the measurement date (Level 3 inputs). As Level 3 inputs are unobservable, our estimated value may differ materially from the actual fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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