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 following table presents certain of our liabilities measured at fair value at June 30, 2026, categorized by level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each liability:
Fair Value at Reporting Date Using
DescriptionTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Recurring Fair Value Measurements Liabilities
Warrants$9,209 $— $— $9,209 
The following table reconciles Level 3 instruments for which significant unobservable inputs were used to determine fair value:
For the period from June 18 through June 30, 2026
Balance as of June 17, 2026 (Successor)$10,700 
Fair value adjustment of warrants(1,491)
Balance as of June 30, 2026 (Successor)$9,209 
Warrants. On the Effective Date, we issued 1,155,450 New Warrants to holders of our previously outstanding senior unsecured notes pursuant to a warrant agreement. Each New Warrant is exercisable for one common share, has an exercise price of $25.00 per share and may be exercised through June 17, 2033. Due to certain features that provide for changes in the settlement amounts, the New Warrants did not meet the criteria for equity classification under FASB ASC Topic 815, Derivatives and Hedging, and are recorded at fair value within accounts payable and other liabilities in our condensed consolidated balance sheet. Changes in fair value are recorded as change in fair value of warrants in our condensed consolidated statement of comprehensive income (loss). As of June 30, 2026, the New Warrants had an aggregate fair value of $9,209.
We estimated the fair value of the New Warrants using an option-pricing valuation technique that considered the market value of the underlying common shares, the exercise price and contractual term of the warrants, as well as assumptions regarding expected volatility, risk-free interest rates and expected dividend yield. The table below summarizes the significant inputs used in the option-pricing model as of June 17, 2026 and June 30, 2026:
As of June 17, 2026
As of June 30, 2026
Underlying stock price$19.38 $17.00 
Exercise price$25.00 $25.00 
Risk free interest rate4.3%4.3%
Volatility factor47%50%
Expected lives (years)7.0 7.0 
Value per unit$9.26 $7.97 
Our financial instruments also include our cash and cash equivalents, restricted cash, rents receivable, amounts due from related persons, accounts payable, a revolving credit facility, a term loan, senior notes, mortgage notes payable, a debtor-in-possession secured term loan, amounts due to related persons, other accrued expenses and security deposits. At June 30, 2026 and December 31, 2025, the fair values of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows:
SuccessorPredecessor
As of June 30, 2026As of December 31, 2025
Financial Instrument
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Senior unsecured notes, 2.650% interest rate, due in 2026
$— $— $133,929 $13,393 
Senior unsecured notes, 2.400% interest rate, due in 2027
— — 78,306 7,831 
Senior secured notes, 3.250% interest rate, due in 2027
— — 417,994 336,485 
Senior secured notes, 9.000% interest rate, due in March 2029
297,042 306,417 281,366 306,444 
Senior secured notes, 9.000% interest rate, due in September 2029
— — 609,999 530,699 
Senior secured notes, 8.375% interest rate, due in December 2029
376,100 366,054 — — 
Senior priority guaranteed unsecured notes, 8.000% interest rate, due in 2030
— — 14,439 4,918 
Senior secured notes, 10.000% interest rate, due in 2031
408,094 413,398 — — 
Senior unsecured notes, 3.450% interest rate, due in 2031
— — 102,402 10,240 
Senior unsecured notes, 6.375% interest rate, due in 2050
— — 162,000 12,312 
Mortgage notes payable177,320 179,432 173,840 182,223 
Total$1,258,556 $1,265,301 $1,974,275 $1,404,545 
(1)Includes net unamortized debt premiums, discounts and issuance costs totaling $23,764 and $22,115 as of June 30, 2026 and December 31, 2025, respectively. See Notes 2 and 7 for further information on our debt.

For the Successor period, we estimated the fair value of our senior notes using independent pricing services that utilize observable market information, including recent indicative bid and ask quotations, market observations and prices for comparable debt instruments (Level 2 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date and we estimated the fair values of our mortgage notes payable using discounted cash flow analyses and currently prevailing market rates (Level 3 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. For the Predecessor period, we estimated the fair values of our senior notes (except for our senior priority guaranteed unsecured notes due 2030 and senior unsecured notes due 2050) using an average of the bid and ask price of the notes (Level 2 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair value of our senior unsecured notes due 2050 based on the closing price on the OTC Pink Market, (Level 2 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair values of our senior unsecured notes due 2030 and our mortgage notes payable using discounted cash flow analyses and currently prevailing market rates (Level 3 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. Because Level 3 inputs are unobservable, our estimated fair values may differ materially from the actual fair values.