| Schedule of Fair Value, by Balance Sheet Grouping |
The table below details the fair values and carrying values for our notes and mortgage note receivable, and interest rate swaps at March 31, 2026 and December 31, 2025. | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | (Dollars in thousands) | Carrying Value | Fair Value | | Carrying Value | Fair Value | | | | | | | | Notes and mortgage note receivable, level 2 | $ | 3,680 | | $ | 3,808 | | | $ | 3,830 | | $ | 3,964 | | Notes receivable, net of credit loss, level 3(1)(2) | $ | — | | $ | — | | | $ | — | | $ | — | | | Interest rate swap asset | $ | 7,395 | | $ | 7,395 | | | $ | 6,691 | | $ | 6,691 | | | | | | | | | | | | | | | ___________________ | | | | | | (1) During 2025 and 2024, the Company recorded an $8.7 million and $11.0 million, respectively, credit loss reserve related to the notes receivable with one tenant and moved from measuring fair value utilizing Level 2 inputs to Level 3 inputs, based on its estimated value of the underlying collateral. | (2) Calculated utilizing Level 3 inputs at March 31, 2026 and December 31, 2025. See the table below for Level 3 activity for the three months ended March 31, 2026 and the year ended December 31, 2025. |
| | | | | | | | | | | | | | Level 3 Inputs | | Notes Receivable: | | March 31, 2026 | December 31, 2025 | | Beginning fair value | | $ | — | | $ | 10,547 | | | Payments | | — | | (1,875) | | | Transfers from Level 2 to Level 3 | | — | | — | | | Credit loss reserve | | — | | (8,672) | | | Ending fair value | | $ | — | | $ | — | |
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