The Company measures expected credit losses on its mortgage notes and notes receivable on an individual basis because its financial instruments do not have similar risk characteristics. The Company uses a forward-looking commercial real estate loss forecasting tool to estimate its current expected credit losses (CECL) for each of its mortgage notes and notes receivable on a loan-by-loan basis. As of June 30, 2026, the Company did not anticipate any prepayments, except for the $3.5 million principal paydown on a mortgage note secured by an attraction property further described below. Therefore, the contractual terms of its mortgage notes and notes receivable were used for the calculation of the expected credit losses. The Company updates the CECL model inputs at each reporting period to reflect, if applicable, any newly originated loans, changes to specific loan information on existing loans and current macroeconomic conditions. The CECL allowance is a valuation account that is deducted from the related mortgage note or note receivable.

Certain of the Company’s mortgage notes and notes receivable include commitments to fund future incremental amounts to its borrowers. These future funding commitments are also subject to the CECL model. The CECL allowance related to future funding is recorded as a liability and is included in "Accounts payable and accrued liabilities" in the accompanying consolidated balance sheets.

Investment in mortgage notes, including related accrued interest receivable, was $616.9 million and $679.3 million at June 30, 2026 and December 31, 2025, respectively. Investment in notes receivable, including related accrued interest receivable, was $2.5 million and $2.7 million at June 30, 2026 and December 31, 2025, respectively, and is included in "Other assets" in the accompanying consolidated balance sheets.

During the six months ended June 30, 2026, the Company exercised its purchase option to convert a $70.0 million mortgage note receivable secured by an experiential lodging property in Tennessee into a wholly-owned rental property subject to a long-term triple-net lease. In connection with this conversion, the Company recognized a gain on real estate transactions of approximately $1.0 million and a benefit for credit losses of approximately $1.3 million.

At June 30, 2026, one of the Company's mortgage notes receivable is considered collateral-dependent and expected credit losses are based on the fair value of the underlying collateral with the credit allowance being the difference between the outstanding principal balance of the note and the estimated fair value at the reporting date. The Company assessed the fair value of the collateral as of June 30, 2026 and the mortgage note receivable is fully reserved with an allowance for credit loss totaling $6.4 million, which represents the outstanding principal balance of the note as of June 30, 2026. Income from this borrower is recognized on a cash basis. No cash interest payments were received during the six months ended June 30, 2026 and 2025 from this borrower.

During the six months ended June 30, 2026, the Company received $10.8 million in net proceeds representing payment in full on a mortgage note receivable that was secured by an eat & play property in Oregon. In connection with this loan payoff, the Company recognized defeasance fee income of $0.5 million, which is included in "Mortgage and other financing income" in the accompanying consolidated statements of income and comprehensive income. This loan was previously considered collateral-dependent.

Additionally, subsequent to June 30, 2026, the Company extended the maturity date of a mortgage note receivable secured by an attraction property in North Carolina and received a principal payment of $3.5 million in connection with the extension.

At June 30, 2026, one of the Company's notes receivable is considered collateral-dependent. The Company assessed the fair value of the collateral as of June 30, 2026 on the note receivable. The note receivable is fully reserved with an allowance for credit loss totaling $6.0 million, which represents the outstanding principal balance of the note as of June 30, 2026. At June 30, 2026, the Company's investment in this note receivable was a variable interest investment and the underlying entity is a VIE. The Company is not the primary beneficiary of this VIE because the Company does not individually have the power to direct the activities that are most significant to the entity and, accordingly, this investment is not consolidated. The Company's maximum exposure to loss associated with this VIE is limited to the Company's outstanding note receivable in the amount of $6.0 million, which is fully reserved in the allowance for credit losses at June 30, 2026. The Company's income received from this borrower is recognized on a cash basis. During both the six months ended June 30, 2026 and 2025, the Company received cash basis interest payments of $0.4 million from this note receivable borrower.


	Mortgage notes receivable		Unfunded commitments - mortgage notes receivable		Notes receivable		Unfunded commitments - notes receivable		Total
Allowance for credit losses at December 31, 2025	$	15,929	$	811	$	6,063	$	—	$	22,803
Provision (benefit) for credit losses, net	(5,040)		(406)		(13)		—		(5,459)
Charge-offs	—		—		—		—		—
Recoveries	—		—		—		—		—
Allowance for credit losses at June 30, 2026	$	10,889	$	405	$	6,050	$	—	$	17,344