v3.26.1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Summary of Estimate of Fair Value Differs From Carrying Amount

The following table presents the carrying amount and estimated fair value of the Company's financial instruments not measured at fair value as of March 31, 2026 and December 31, 2025 (in thousands):

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

 

Fair Value Hierarchy

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage and other financing receivables (1)

 

Level 3

 

$

420,448

 

 

$

413,217

 

 

$

383,935

 

 

$

392,222

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable, net (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior unsecured notes

 

Level 2

 

$

6,860,102

 

 

$

6,457,438

 

 

$

6,859,458

 

 

$

6,550,537

 

Unsecured term loans

 

Level 3

 

$

859,434

 

 

$

860,139

 

 

$

859,272

 

 

$

860,685

 

Mortgages payable, net (3)

 

Level 3

 

$

465,433

 

 

$

452,446

 

 

$

467,203

 

 

$

455,214

 

 

(1)
The carrying value includes and the fair value excludes allowance for credit losses of $5.4 million as of both March 31, 2026 and December 31, 2025.
(2)
The carrying value includes and the fair value excludes deferred financing costs of $60.4 million and $62.5 million as of March 31, 2026 and December 31, 2025, respectively.
(3)
The carrying value includes and the fair value excludes deferred financing costs of $0.9 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively.
Summary of Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis

The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025, aggregated by the level of the fair value hierarchy within which those measurements fall (in thousands):

 

 

Balance at
March 31, 2026

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

2,952

 

 

$

2,952

 

 

$

-

 

 

$

-

 

Interest rate swap derivative asset

 

$

210

 

 

$

-

 

 

$

210

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps derivative liabilities

 

$

3,352

 

 

$

-

 

 

$

3,352

 

 

$

-

 

 

 

Balance at
 December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

2,649

 

 

$

2,649

 

 

$

-

 

 

$

-

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps derivative liabilities

 

$

8,570

 

 

$

-

 

 

$

8,570

 

 

$

-

 

Embedded derivative liability

 

$

5,440

 

 

$

-

 

 

$

-

 

 

$

5,440

 

Assets measured at fair value on a non-recurring basis at December 31, 2025, were as follows (in thousands):

 

 

Balance at
 December 31, 2025

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Real estate

 

$

9,718

 

 

$

-

 

 

$

-

 

 

$

9,718

 
Summary of Change in Fair Value of Embedded Derivative Liability

The table below summarizes the change in the fair value of the embedded derivative liability measured using Level 3 inputs for the three months ended March 31, 2026 and 2025 (in thousands):

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Balance as of January 1,

 

$

5,440

 

 

$

19,864

 

Settlements

 

 

(5,440

)

 

 

(370

)

Change in fair value (included in Other (expense)/income, net)

 

 

-

 

 

 

316

 

Balance as of March 31,

 

$

-

 

 

$

19,810