Fair Value of Assets and Liabilities

3 Months Ended

Mar. 31, 2024

Note 14. Fair Value of Assets and Liabilities

The table below presents certain of our assets carried at fair value at March 31, 2024, 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 Measurement Assets:
Assets of properties held for sale (1)	$	1,863	$	—	$	—	$	1,863

(1)We recorded a loss on asset impairment of $2,451 during the three months ended March 31, 2024, to reduce the carrying value of five net lease properties in our condensed consolidated balance sheet 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 March 31, 2024 and December 31, 2023, the fair values of these financial instruments approximated their carrying values in our condensed consolidated balance sheets due to their short-term nature or floating interest rates, except as follows:


	March 31, 2024				December 31, 2023
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value



Senior Unsecured Notes, due 2025 at 4.50%	$	349,353	$	341,950	$	349,181	$	341,688
Senior Unsecured Notes, due 2025 at 7.50%	796,591		810,784		796,007		808,888
Senior Unsecured Notes, due 2026 at 5.25%	347,883		338,587		347,601		339,780
Senior Unsecured Notes, due 2026 at 4.75%	448,499		419,436		448,347		419,909
Senior Unsecured Notes, due 2027 at 4.95%	397,861		369,984		397,672		362,108
Senior Unsecured Notes, due 2027 at 5.50%	445,913		428,958		445,631		412,002
Net Lease Mortgage Notes, due 2028 at 5.60%	561,349		580,423		558,876		585,784
Senior Unsecured Notes, due 2028 at 3.95%	395,643		342,336		395,355		327,708
Senior Unsecured Notes, due 2029 at 4.95%	420,675		347,935		420,477		351,726
Senior Unsecured Notes, due 2030 at 4.375%	393,339		305,332		393,056		310,524
Senior Secured Notes, due 2031 at 8.625%	969,039		1,066,440		968,017		1,047,430
Total financial liabilities	$	5,526,145	$	5,352,165	$	5,520,220	$	5,307,547

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

At March 31, 2024 and December 31, 2023, we estimated the fair values of our senior notes using an average of the bid and ask price of the notes (Level 2 inputs) as of the measurement dates. At March 31, 2024 and 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 dates (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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