v3.25.2
Summary of Significant Accounting Policies (Tables)
 6 Months Ended
Jun. 30, 2025
Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives of Assets

The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows:

Description

 

Depreciable Life

Buildings

 

15-40 years

Site improvements - buildings and land

 

2-20 years

Furniture, fixtures and equipment

 

5-15 years

Lease intangibles

 

Over lease term
Schedule of company's assets and liabilities measured at fair value on a recurring basis

The following table details the Company’s assets and liabilities measured at fair value on a recurring basis ($ in thousands):

 

 

June 30, 2025

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate debt

 

$

—

 

 

$

—

 

 

$

134,965

 

 

$

134,965

 

 

$

—

 

 

$

—

 

 

$

79,310

 

 

$

79,310

 

Investments in real estate-related and other securities

 

 

—

 

 

 

38,858

 

 

 

—

 

 

 

38,858

 

 

 

588

 

 

 

5,829

 

 

 

—

 

 

 

6,417

 

Total

 

$

—

 

 

$

38,858

 

 

$

134,965

 

 

$

173,823

 

 

$

588

 

 

$

5,829

 

 

$

79,310

 

 

$

85,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mandatorily Redeemable Instruments

 

$

—

 

 

$

—

 

 

$

105,913

 

 

$

105,913

 

 

$

—

 

 

$

—

 

 

$

105,325

 

 

$

105,325

 

Interest rate swaps(1)

 

 

—

 

 

 

323

 

 

 

—

 

 

 

323

 

 

 

—

 

 

 

118

 

 

 

—

 

 

 

118

 

Treasury note futures contracts(1)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

17

 

 

 

—

 

 

 

—

 

 

 

17

 

Total

 

$

—

 

 

$

323

 

 

$

105,913

 

 

$

106,236

 

 

$

17

 

 

$

118

 

 

$

105,325

 

 

$

105,460

 

(1) Included in accounts payable, accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets.

The following table details the Company’s assets and liabilities measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):

 

 

Investments in Real Estate Debt (asset)

 

 

Mandatorily Redeemable Instruments (liability)

 

Balance at December 31, 2024

 

$

79,310

 

 

$

105,325

 

Additions

 

 

55,700

 

 

 

—

 

Distributions declared

 

 

—

 

 

 

2,149

 

Reclassify to distributions payable/paid

 

 

—

 

 

 

(2,149

)

Redemption value adjustment

 

 

—

 

 

 

588

 

Fair value adjustment

 

 

(45

)

 

 

—

 

Balance at June 30, 2025

 

$

134,965

 

 

$

105,913

 

 
Schedule of quantitative inputs and assumptions

The following table contains the quantitative inputs and assumptions used for items categorized in Level 3 of the fair value hierarchy ($ in thousands):

 

 

June 30, 2025

 

 

Fair Value

 

 

Valuation Technique

 

Unobservable Inputs

 

Weighted - Average Rate

 

Impact to Valuation from an Increase in Input

Assets:

 

 

 

 

 

 

 

 

 

 

 

Investments in real estate debt

 

$

134,965

 

 

Discounted cash flow

 

Market credit spread

 

SOFR(1) + 2.99%

 

Decrease

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Mandatorily Redeemable Instruments(2)

 

$

105,913

 

 

Discounted cash flow

 

Discount rate/
Exit capitalization rate/
Market yield

 

7.33%/
5.93%/
6.07%

 

Decrease

(1) "SOFR" refers to the Secured Overnight Financing Rate, which was 4.32% at June 30, 2025.

(2) Mandatorily Redeemable Instruments are carried at the NAV of the Class E units and Class E shares, which is determined monthly in accordance with the Company's valuation guidelines.
Schedule of Carrying Value and Fair Value of Financial Instruments

The following table presents the carrying value and fair value of financial instruments that are not carried at fair value on the Consolidated Balance Sheets ($ in thousands):

 

 

June 30, 2025

 

 

December 31, 2024

 

 

 

Carrying Value(1)

 

 

Fair Value

 

 

Carrying Value(1)

 

 

Fair Value

 

Mortgage notes

 

$

204,603

 

 

$

202,305

 

 

$

124,836

 

 

$

123,252

 

Repurchase facility

 

 

88,575

 

 

 

88,584

 

 

 

46,800

 

 

 

46,832

 

Total

 

$

293,178

 

 

$

290,889

 

 

$

171,636

 

 

$

170,084

 

(1) Carrying value excludes deferred financing costs and discounts.