v3.26.1
Fair Value of Assets and Liabilities
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities
The table below presents certain of our assets that are measured on a recurring basis at fair value as of June 30, 2026 and December 31, 2025, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset:
Quoted Prices in Significant OtherSignificant
Active Markets forObservableUnobservable
Identical AssetsInputsInputs
Total(Level 1)(Level 2)(Level 3)
As of June 30, 2026
Interest rate cap (1)
$53 $— $53 $— 
Investment in Seaport JV (2)
$74,134 $— $— $74,134 
Investment in LSMD JV (2)
$46,738 $— $— $46,738 
As of December 31, 2025
Interest rate cap (1)
$— $— $— $— 
Investment in Seaport JV (2)
$73,471 $— $— $73,471 
Investment in LSMD JV (2)
$46,655 $— $— $46,655 
(1)The fair values of our interest rate cap derivatives are based on prevailing market prices in secondary markets for similar derivative contracts as of the measurement date.
(2)The assumptions we made in the fair value analysis are based on the location, type and nature of each property, and current and anticipated market conditions.
The discount rates, exit capitalization rates and holding periods used to determine the fair value of our investments in the unconsolidated joint ventures' significant unobservable inputs are shown in the table below:
Exit
Valuation Discount Capitalization Holding
TechniqueRatesRatesPeriods
As of June 30, 2026
Investment in Seaport JVDiscounted cash flow
7.00%
6.00%
10 years
Investment in LSMD JVDiscounted cash flow
6.25% - 8.75%
5.25% - 9.00%
10 years
As of December 31, 2025
Investment in Seaport JVDiscounted cash flow
7.00%
6.00%
10 years
Investment in LSMD JVDiscounted cash flow
6.25% - 8.75%
5.25% - 8.00%
10 - 12 years
The table below presents a summary of the changes in fair value for our investments in the unconsolidated joint ventures:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Beginning balance$119,622 $133,797 $120,126 $126,859 
Equity in earnings of unconsolidated joint ventures1,850 2,654 1,946 3,792 
Contributions to unconsolidated joint ventures
— 2,700 — 8,500 
Distributions from unconsolidated joint ventures(600)— (1,200)— 
Ending balance$120,872 $139,151 $120,872 $139,151 
In addition to the assets described in the tables above, our financial instruments at June 30, 2026 and December 31, 2025 included cash and cash equivalents, restricted cash, certain other assets, our revolving credit facility, senior unsecured notes, senior secured notes, secured debt and finance leases and certain other unsecured obligations and liabilities. The fair values of these financial instruments approximated their carrying values in our condensed consolidated financial statements as of such dates, except as follows:
As of June 30, 2026As of December 31, 2025
Carrying Estimated Carrying Estimated
Value (1)
Fair Value
Value (1)
Fair Value
Senior unsecured notes, 4.750% interest rate, due 2028
$497,926 $490,500 $497,290 $482,635 
Senior secured notes, 7.250% interest rate, due 2030
366,019 385,988 365,005 383,434 
Senior unsecured notes, 4.375% interest rate, due 2031
495,990 457,700 495,561 440,000 
Senior unsecured notes, 5.625% interest rate, due 2042
343,873 249,480 343,683 224,140 
Senior unsecured notes, 6.250% interest rate, due 2046
244,338 183,700 244,192 175,000 
Secured debt and finance leases454,688 476,736 455,093 484,932 
Total$2,402,834 $2,244,104 $2,400,824 $2,190,141 
(1)Includes unamortized net discounts, premiums and debt issuance costs, if any.
The fair values of our two issuances of senior unsecured notes due 2042 and 2046 are based on the closing price on The Nasdaq Stock Market LLC, or Nasdaq, as of June 30, 2026 and December 31, 2025 (Level 1 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our two issuances of senior unsecured notes due 2028 and 2031 and our issuance of senior secured notes due 2030 using an average of the bid and ask price on Nasdaq on or about June 30, 2026 and December 31, 2025 (Level 2 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our secured debts by using discounted cash flows analyses and currently prevailing market terms as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP). Because Level 3 inputs are unobservable, our estimated fair values may differ materially from the actual fair values.