v3.26.1
Investments in Unconsolidated Entities (Tables)
 6 Months Ended
Jun. 30, 2026
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Investment in Unconsolidated Entities The following is a summary of our investments in unconsolidated entities for the periods indicated below (dollars in
thousands):
Ownership
%
Number of
Properties
Carrying Amount (1) of
Investment as of
Equity in earnings of
unconsolidated entities
Six months ended June 30,
As of June 30, 2026
June 30,
2026
December 31,
2025
2026
2025
Data Center Joint Venture (2)
80.0%
2
$348,861
$293,073
$3,794
$6,547
Bellagio Las Vegas Joint
Venture - Common Equity
Interest (3)
21.9%
1
242,877
253,625
1,085
1,079
Bellagio Las Vegas Joint
Venture - Preferred Equity
Interest (3)
n/a
n/a
650,000
650,000
—
—
Passport Park Joint Venture (4)
95.0%
3
106,715
59,758
(6)
—
Total investment in
unconsolidated entities
$1,348,453
$1,256,456
$4,873
$7,626
(1)As of June 30, 2026, the total carrying amount of the investments exceeded the underlying equity in net assets (i.e., basis difference) by $9.9
million. This basis difference is primarily due to the capitalized interest related to the data center and Passport Park development joint
ventures.
(2)The joint venture with Digital Realty Trust, Inc. is expanding the capacity of its two data centers for the existing client, and our pro-rata share of
the estimated costs for this second phase of the development was $177.7 million as of June 30, 2026.
(3)During each of the six-month periods ended June 30, 2026 and 2025, we recognized interest income of $26.1 million for 8.1% preferential
cumulative distributions, included within 'Interest and dividend income on loans and preferred equity investments' in our consolidated
statements of income and comprehensive income. The unconsolidated entity had total debt outstanding of $3.0 billion as of June 30, 2026, all
of which was non-recourse to us with limited customary exceptions.
(4)As of June 30, 2026, we held a 95.0% common equity interest in the joint venture with Trammell Crow Company ("TCC"), with $70.4 million in
preferred equity. We have committed to investing an additional $60.1 million for development of three industrial facilities. We have determined
that we are not the primary beneficiary of this VIE because significant activities affecting economic performance are shared. TCC is the
managing member, and we do not have substantive kick-out rights. We will continuously evaluate whether we are the primary beneficiary as
power to direct significant activities can change during the joint venture's life. Our maximum loss exposure is limited to our common and
preferred equity investments and committed funding.