Fair Value of Financial Instruments (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Schedule of Assets at Fair Value on a Recurring Basis |
The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of June 30, 2026 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Bond |
|
$ |
— |
|
|
$ |
49 |
|
|
$ |
— |
|
|
$ |
49 |
|
Common stock |
|
|
60,474 |
|
|
|
— |
|
|
|
118,492 |
|
|
|
178,966 |
|
Convertible notes |
|
|
— |
|
|
|
— |
|
|
|
12,019 |
|
|
|
12,019 |
|
LLC interest |
|
|
— |
|
|
|
— |
|
|
|
57,278 |
|
|
|
57,278 |
|
LP interest |
|
|
— |
|
|
|
62,260 |
|
|
|
132,647 |
|
|
|
194,907 |
|
Preferred Shares |
|
|
— |
|
|
|
— |
|
|
|
74,028 |
|
|
|
74,028 |
|
Rights and warrants |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Senior loan |
|
|
— |
|
|
|
59 |
|
|
|
51,130 |
|
|
|
51,189 |
|
|
|
$ |
60,474 |
|
|
$ |
62,368 |
|
|
$ |
445,598 |
|
|
$ |
568,440 |
|
The table below summarizes the Company’s assets within the valuation hierarchy carried at fair value on a recurring basis as of December 31, 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value |
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Bond |
|
$ |
— |
|
|
$ |
54 |
|
|
$ |
— |
|
|
$ |
54 |
|
Common stock |
|
|
57,278 |
|
|
|
— |
|
|
|
120,690 |
|
|
|
177,968 |
|
Convertible notes |
|
|
— |
|
|
|
— |
|
|
|
11,994 |
|
|
|
11,994 |
|
LLC interest |
|
|
— |
|
|
|
— |
|
|
|
54,488 |
|
|
|
54,488 |
|
LP interest |
|
|
— |
|
|
|
56,558 |
|
|
|
147,172 |
|
|
|
203,730 |
|
Preferred Shares |
|
|
— |
|
|
|
— |
|
|
|
73,388 |
|
|
|
73,388 |
|
Rights and warrants |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
Senior loan |
|
|
— |
|
|
|
58 |
|
|
|
46,926 |
|
|
|
46,984 |
|
|
|
$ |
57,278 |
|
|
$ |
56,670 |
|
|
$ |
454,662 |
|
|
$ |
568,610 |
|
|
| Summary of Changes in Level 3 Assets |
The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the six months ended June 30, 2026 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
Contributions/
purchases |
|
|
Paid
in-kind
dividends |
|
|
Redemptions/
conversions |
|
|
Realized
gain/
(loss) |
|
|
Unrealized
gain/
(loss) |
|
|
June 30, 2026 |
|
Common stock |
|
$ |
120,690 |
|
|
$ |
1,500 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(9 |
) |
|
$ |
(3,689 |
) |
|
$ |
118,492 |
|
Convertible notes |
|
|
11,994 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25 |
|
|
|
12,019 |
|
LLC interest |
|
|
54,488 |
|
|
|
— |
|
|
|
1,701 |
|
|
|
— |
|
|
|
— |
|
|
|
1,089 |
|
|
|
57,278 |
|
LP interest |
|
|
147,172 |
|
|
|
1,398 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,923 |
) |
|
|
132,647 |
|
Preferred Shares |
|
|
73,388 |
|
|
|
— |
|
|
|
2,890 |
|
|
|
(2,250 |
) |
|
|
— |
|
|
|
— |
|
|
|
74,028 |
|
Rights and warrants |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
Senior loan |
|
|
46,926 |
|
|
|
961 |
|
|
|
2,855 |
|
|
|
(235 |
) |
|
|
— |
|
|
|
623 |
|
|
|
51,130 |
|
Total |
|
$ |
454,662 |
|
|
$ |
3,859 |
|
|
$ |
7,446 |
|
|
$ |
(2,485 |
) |
|
$ |
(9 |
) |
|
$ |
(17,875 |
) |
|
$ |
445,598 |
|
The table below sets forth a summary of changes in the Company’s Level 3 assets (assets measured at fair value using significant unobservable inputs) for the six months ended June 30, 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2024 |
|
|
Contributions/
purchases |
|
|
Paid
in-kind
dividends |
|
|
Redemptions/
conversions |
|
|
Realized
gain/
(loss) |
|
|
Unrealized
gain/
(loss) |
|
|
June 30, 2025 |
|
Common stock |
|
$ |
157,828 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3,687 |
) |
|
$ |
1,511 |
|
|
$ |
(29,180 |
) |
|
$ |
126,472 |
|
Convertible notes |
|
|
20,846 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,001 |
) |
|
|
— |
|
|
|
236 |
|
|
|
14,081 |
|
LLC interest |
|
|
36,777 |
|
|
|
22,345 |
|
|
|
— |
|
|
|
(3,995 |
) |
|
|
3,462 |
|
|
|
(7,116 |
) |
|
|
51,473 |
|
LP interest |
|
|
189,659 |
|
|
|
1,310 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(23,571 |
) |
|
|
167,398 |
|
Preferred Shares |
|
|
69,895 |
|
|
|
— |
|
|
|
2,824 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72,719 |
|
Rights and warrants |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Senior loan |
|
|
43,693 |
|
|
|
— |
|
|
|
2,514 |
|
|
|
(522 |
) |
|
|
2 |
|
|
|
260 |
|
|
|
45,947 |
|
Total |
|
$ |
518,698 |
|
|
$ |
23,655 |
|
|
$ |
5,338 |
|
|
$ |
(15,205 |
) |
|
$ |
4,975 |
|
|
$ |
(59,371 |
) |
|
$ |
478,090 |
|
|
| Schedule of Significant Unobservable Inputs of Level 3 Assets |
The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of June 30, 2026.
|
|
|
|
|
|
|
|
|
|
|
Significant |
|
|
|
|
Category |
Valuation Technique |
Unobservable Inputs |
Input/Range Values |
|
Fair Value |
|
Common Stock |
Market Approach |
Unadjusted Price/MHz-PoP |
$0.10 - $1.10 ($0.565) |
|
$ |
118,492 |
|
|
Discounted Cash Flow |
Discount Rate |
7.00% - 13.50 % (9.375%) |
|
|
|
|
|
Market Rent (per sqft) |
$13.00 - $42.50 ($27.75) |
|
|
|
|
NAV Approach |
Discount Rate |
10.00% |
|
|
|
|
|
NAV per Share |
$ |
3.27 |
|
|
|
|
Multiples Analysis |
Multiple of EBITDA |
3.25x - 4.50x (3.875x) |
|
|
|
|
Recent Transaction |
Implied Enterprise Value from Transaction Price ($mm) |
$ |
1,211.50 |
|
|
|
|
|
|
|
|
|
|
Convertible Notes |
Discounted Cash Flow |
Discount Rate |
6.33% - 8.58% (7.38%) |
|
|
12,019 |
|
|
|
|
|
|
|
|
LLC Interest |
Discounted Cash Flow |
Discount Rate |
7.00% - 27.00% (12.75%) |
|
|
57,278 |
|
|
|
Market Rent (per sqft) |
$13.00 - $42.50 ($27.75) |
|
|
|
|
|
Capitalization Rate |
5.375% |
|
|
|
|
|
|
|
|
|
|
LP Interest |
Market Approach |
Capitalization Rate |
5.50% - 6.00% (5.75%) |
|
|
132,647 |
|
|
|
Terminal Capitalization Rate |
6.09% |
|
|
|
|
NAV Approach |
Discount Rate |
7.50% - 12.50% (10.00%) |
|
|
|
|
|
NAV per Share |
4.625% - 5.125% (4.75%) |
|
|
|
|
|
|
|
|
|
|
Preferred Shares |
Liquidation Analysis |
Par |
$ |
1,000.00 |
|
|
74,028 |
|
|
|
|
|
|
|
|
Rights and Warrants |
|
Price per Share |
$ |
0.08 |
|
|
4 |
|
|
|
|
|
|
|
|
Senior Loan |
Discounted Cash Flow |
Discount Rate |
12.50% - 17.50% (14.13%) |
|
|
51,130 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
$ |
445,598 |
|
The following is a summary of the significant unobservable inputs used in the fair valuation of assets categorized within Level 3 of the fair value hierarchy as of December 31, 2025.
|
|
|
|
|
|
|
|
|
Category |
Valuation Technique |
Unobservable Inputs |
Input/Range Values |
|
Fair Value |
|
Common Stock |
Market Approach |
Unadjusted Price/MHz-PoP |
$0.10 - $1.10 ($0.565) |
|
$ |
120,690 |
|
|
Discounted Cash Flow |
Discount Rate |
7.00% - 14.00 % (9.50%) |
|
|
|
|
|
Market Rent (per sqft) |
$13.00 - $42.50 ($27.75) |
|
|
|
|
NAV Approach |
Discount Rate |
10.00% |
|
|
|
|
|
NAV per Share |
$ |
4.18 |
|
|
|
|
Multiples Analysis |
Multiple of EBITDA |
3.50x - 4.75x (4.125x) |
|
|
|
|
Recent Transaction |
Implied Enterprise Value from Transaction Price ($mm) |
$ |
1,211.00 |
|
|
|
|
|
|
|
|
|
|
Convertible Notes |
Discounted Cash Flow |
Discount Rate |
6.08% - 8.08% (7.08%) |
|
|
11,994 |
|
|
|
|
|
|
|
|
LLC Interest |
Discounted Cash Flow |
Discount Rate |
7.00% - 27.00% (12.75%) |
|
|
54,488 |
|
|
|
Market Rent (per sqft) |
$13.00 - $42.50 ($27.75) |
|
|
|
|
|
Capitalization Rate |
5.375% |
|
|
|
|
|
|
|
|
|
|
LP Interest |
Market Approach |
Capitalization Rate |
5.50% - 6.00% (5.75%) |
|
|
147,172 |
|
|
|
Terminal Capitalization Rate |
6.09% |
|
|
|
|
NAV Approach |
Discount Rate |
5.00% - 10.00% (7.50%) |
|
|
|
|
|
NAV per Share |
4.50% - 5.00% (4.75%) |
|
|
|
|
|
|
|
|
|
|
Preferred Shares |
Liquidation Analysis |
Par |
$ |
1,000.00 |
|
|
73,388 |
|
|
|
|
|
|
|
|
Rights and Warrants |
|
Price per Share |
$ |
0.08 |
|
|
4 |
|
|
|
|
|
|
|
|
Senior Loan |
Discounted Cash Flow |
Discount Rate |
12.50% - 17.50% (14.13%) |
|
|
46,926 |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
$ |
454,662 |
|
|
| Schedule of Long-Term Debt Indebtedness |
The following table contains summary information of the Company’s debt as of June 30, 2026 and December 31, 2025 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
principal as of |
|
|
|
|
|
|
|
Description |
|
|
Type |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
Interest Rate |
|
|
Maturity Date (7) |
|
Mortgages Payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cityplace Note A-1 |
(1) |
|
Floating |
|
$ |
96,915 |
|
|
$ |
97,755 |
|
|
|
5.98 |
% |
|
11/8/2026 |
|
Cityplace Note A-2 |
(1) |
|
Floating |
|
|
12,200 |
|
|
|
12,306 |
|
|
|
5.98 |
% |
|
11/8/2026 |
|
Cityplace Note B-1 |
(1) |
|
Floating |
|
|
21,200 |
|
|
|
21,384 |
|
|
|
9.98 |
% |
|
11/8/2026 |
|
Cityplace Note B-2 |
(1) |
|
Floating |
|
|
2,669 |
|
|
|
2,692 |
|
|
|
9.98 |
% |
|
11/8/2026 |
|
Cityplace Mezz Note-1 |
(1) |
|
Floating |
|
|
3,029 |
|
|
|
3,055 |
|
|
|
9.98 |
% |
|
11/8/2026 |
|
Cityplace Mezz Note-2 |
(1) |
|
Floating |
|
|
381 |
|
|
|
385 |
|
|
|
9.98 |
% |
|
11/8/2026 |
|
NHT - Note A |
(2) |
|
Floating |
|
|
23,743 |
|
|
|
26,381 |
|
|
|
5.65 |
% |
|
2/8/2027 |
|
NHT - Note B |
(2) |
|
Floating |
|
|
11,432 |
|
|
|
12,702 |
|
|
|
10.11 |
% |
|
2/8/2027 |
|
OSL Loan |
(3) |
|
Fixed |
|
|
14,140 |
|
|
|
— |
|
|
|
8.50 |
% |
|
2/12/2029 |
|
NHT - PC & B Loan |
(3) |
|
Floating |
|
|
— |
|
|
|
38,580 |
|
|
|
— |
|
|
|
— |
|
White Rock Center Note |
(4) |
|
Fixed |
|
|
11,375 |
|
|
|
10,000 |
|
|
|
10.55 |
% |
|
6/26/2031 |
|
Notes Payable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dominion Note |
|
|
Floating |
|
|
13,250 |
|
|
|
13,250 |
|
|
|
6.75 |
% |
|
8/8/2027 |
|
NexBank Revolver |
(5) |
|
Floating |
|
|
8,830 |
|
|
|
10,994 |
|
|
|
7.11 |
% |
|
11/21/2026 |
|
Convertible Notes Due to Affiliates |
|
|
Fixed |
|
|
58,111 |
|
|
|
58,111 |
|
|
2.25% - 7.50% |
|
|
2/14/2027 - 9/30/2042 |
|
Promissory Notes Due to Affiliates |
|
|
Fixed |
|
|
847 |
|
|
|
817 |
|
|
|
7.33 |
% |
|
4/17/2027 |
|
Prime Brokerage Borrowing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jefferies Line of Credit |
|
|
Floating |
|
|
5,907 |
|
|
|
5,136 |
|
|
|
4.12 |
% |
|
N/A (8) |
|
Total Debt |
|
|
|
|
$ |
284,029 |
|
|
$ |
313,548 |
|
|
|
|
|
|
|
Fair market value adjustment, net of accumulated amortization |
(6) |
|
|
|
|
(5,491 |
) |
|
|
(6,222 |
) |
|
|
|
|
|
|
Deferred financing costs |
|
|
|
|
|
(431 |
) |
|
|
(303 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
278,107 |
|
|
$ |
307,023 |
|
|
|
|
|
|
|
(1)This debt is secured by the following property: Cityplace. (2)This debt is secured by the following properties: Dallas Hilton Garden Inn and the St. Petersburg Marriott. (3)As of December 31, 2025, this debt was secured by the following properties: Hyatt Place Park City and Bradenton Hampton Inn & Suites. As of June 30, 2026, following the sale of the Bradenton Hampton Inn & Suites on March 24, 2026, this debt is secured by the following property: Hyatt Place Park City. (4)This debt is secured by the following property: White Rock Center. (5)This debt is secured by the following property and investments: 5916 W Loop 289 and IQHQ, LP. (6)The Company recorded a valuation adjustment of the Convertible Notes Due to Affiliates upon the consolidation of NHT to adjust for the difference between the fair value and the outstanding principal amount of the debt. The difference is amortized into interest expense over the terms of the notes. (7)See Note 17 for additional information regarding the maturity date of the loans. (8)This debt balance has no stated maturity date. Long-term indebtedness is carried at amounts that reasonably approximate their fair value at June 30, 2026 and December 31, 2025, except for the following debt (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
Outstanding
Principal Balance |
|
|
Estimated Fair Value |
|
|
Outstanding
Principal Balance |
|
|
Estimated Fair Value |
|
Notes payable |
$ |
81,038 |
|
|
$ |
65,682 |
|
|
$ |
83,172 |
|
|
$ |
67,959 |
|
|
| Schedule of Derivative Instruments |
As of December 31, 2025, the Hospitality segment had the following outstanding interest rate caps (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Derivative |
|
Hedged Financial
Instrument |
|
Notional |
|
|
Strike
Rate |
|
Reference Rate |
|
Termination Date |
Interest rate cap |
|
Note payable |
|
$ |
39,300 |
|
|
2.00% |
|
One-month SOFR |
|
2.00% |
|
February 5, 2026 |
|