v3.26.1
Fair Value of Financial Instruments
6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 17 – Fair Value of Financial Instruments

The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on our condensed consolidated balance sheets at June 30, 2026 and December 31, 2025 ($ in thousands):

 

 

June 30, 2026

 

 

December 31, 2025

 

 

Carrying
Value

 

 

Estimated
Fair Value

 

 

Carrying
Value

 

 

Estimated
Fair Value

 

Cash and cash equivalents

 

$

1,239,480

 

 

$

1,239,480

 

 

$

139,825

 

 

$

139,825

 

Commercial mortgage loans, net

 

 

 

 

 

 

 

 

8,712,018

 

 

 

8,650,253

 

Subordinate loans, net

 

 

 

 

 

 

 

 

62,198

 

 

 

62,198

 

Secured debt arrangements, net

 

 

 

 

 

 

 

 

(6,268,550

)

 

 

(6,268,550

)

Senior secured term loans, net

 

 

 

 

 

 

 

 

(727,533

)

 

 

(750,914

)

Senior secured notes, net

 

 

 

 

 

 

 

 

(497,226

)

 

 

(485,625

)

Debt related to real estate owned, held for investment, net

 

 

(371,428

)

 

 

(371,428

)

 

 

(424,703

)

 

 

(424,703

)

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount we could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

As discussed above, in April 2026, we sold our commercial real estate loan portfolio (other than loans that were repaid prior to closing and the Chicago Hotel Loan which repaid after the Closing Date) to Athene for cash consideration of approximately $8.6 billion, which is based on 99.7% of the total commitment amount of such loans as of the Closing Date. A portion of the proceeds from the Asset Sale were used to repay our secured debt arrangements, senior secured term loan, and senior secured notes.

Estimates of fair value for cash and cash equivalents, Senior Secured Notes, net, and Term Loans, net are measured using observable Level I inputs as defined in "Note 3 – Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 – Fair Value Disclosure."