XML 33 R17.htm IDEA: XBRL DOCUMENT
v3.25.3

Allowance for Credit Losses | 9 Months Ended
--- | ---
Sep. 30, 2025
Credit Loss [Abstract] |
Allowance for Credit Losses | Allowance for Credit Losses Under ASC 326, we are required to estimate and record a non-cash allowance for current expected credit losses, or CECL allowance, related to our historical and any future investments in sales-type leases, lease financing receivables, loans and securities classified as held-to-maturity. The following tables detail the allowance for credit losses as of September 30, 2025 and December 31, 2024:
| September 30, 2025
($ In thousands) | Amortized Cost |  | Allowance (1) |  | Net Investment |  | Allowance as a % of Amortized Cost
Investments in leases – sales-type | $ | 24,565,707 |  |  | $ | (802,091) |  |  | $ | 23,763,616 |  |  | 3.27 | %
Investments in leases – financing receivables | 19,390,805 |  |  | (750,732) |  |  | 18,640,073 |  |  | 3.87 | %
Investments in loans and securities | 2,472,048 |  |  | (39,049) |  |  | 2,432,999 |  |  | 1.58 | %
Other assets – sales-type sub-leases | 862,469 |  |  | (20,372) |  |  | 842,097 |  |  | 2.36 | %
Totals | $ | 47,291,029 |  |  | $ | (1,612,244) |  |  | $ | 45,678,785 |  |  | 3.41 | %
| December 31, 2024
($ In thousands) | Amortized Cost |  | Allowance (1) |  | Net Investment |  | Allowance as a % of Amortized Cost
Investments in leases – sales-type | $ | 24,383,843 |  |  | $ | (802,742) |  |  | $ | 23,581,101 |  |  | 3.29 | %
Investments in leases – financing receivables | 19,167,432 |  |  | (737,112) |  |  | 18,430,320 |  |  | 3.85 | %
Investments in loans and securities | 1,676,530 |  |  | (24,997) |  |  | 1,651,533 |  |  | 1.49 | %
Other assets – sales-type sub-leases | 863,374 |  |  | (20,598) |  |  | 842,776 |  |  | 2.39 | %
Totals | $ | 46,091,179 |  |  | $ | (1,585,449) |  |  | $ | 44,505,730 |  |  | 3.44 | %
____________________ (1) The total allowance excludes the CECL allowance for unfunded commitments of our loans and for unfunded commitments made to our tenants to fund the development and construction of improvements at our properties. As of September 30, 2025 and December 31, 2024, such allowance is $9.7 million and $9.5 million, respectively, and is recorded in Other liabilities. The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three and nine months ended September 30, 2025 and 2024:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Beginning Balance |  | $ | 1,643,241 |  |  | $ | 1,534,515 |  |  | $ | 1,594,931 |  |  | $ | 1,472,386 |
Initial allowance from current period investments |  | — |  |  | — |  |  | 8,126 |  |  | 2,914 |
Current period change in credit allowance |  | (21,314) |  |  | (31,022) |  |  | 18,870 |  |  | 28,193 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Ending Balance |  | $ | 1,621,927 |  |  | $ | 1,503,493 |  |  | $ | 1,621,927 |  |  | $ | 1,503,493 |
During the three months ended September 30, 2025, we recognized a $20.2 million decrease in our allowance for credit losses primarily driven by a decrease in the volatility of the equity market performance of our tenants partially offset by negative changes in the macroeconomic forecast during the current quarter, both of which impact the reasonable and supportable period, or R&S Period, probability of default, or PD. During the nine months ended September 30, 2025, we recognized a $24.8 million increase in our allowance for credit losses primarily driven by the equity market performance of our tenants and negative changes in the macroeconomic forecast during the current period. In addition, we recorded an initial CECL allowance of $8.1 million on our $960.0 million of debt investment activity during the period. The increase was partially offset by standard annual updates to the CECL model used and certain related inputs, which decreased the estimate used for the Long-Term Period PD. During the three months ended September 30, 2024, we recognized a $31.6 million decrease in our allowance for credit losses primarily driven by positive changes in the macroeconomic forecast during the applicable quarter and equity market performance of our tenants. This decrease was partially offset by adjustments made to the assumptions used to project future cash flows for one of our investments. During the nine months ended September 30, 2024, we recognized a $32.3 million increase in our allowance for credit losses primarily driven by the market performance of our tenants and negative changes in the macroeconomic forecast during the period as well as adjustments made to the assumptions used to project future cash flows for one of our investments. As of September 30, 2025 and December 31, 2024, and since our formation on October 6, 2017, all of our lease agreements and loan and security investments are current in payment of their obligations to us and no investments are on non-accrual status. Credit Quality Indicators We assess the credit quality of our investments through the credit ratings of the senior secured debt of the guarantors of our leases, as we believe that our lease agreements have a similar credit profile to a senior secured debt instrument. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the guarantor of one of our lease agreements does not have senior secured debt with a credit rating, we use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the Long-Term Period PD when estimating credit losses for each investment. The following tables detail the amortized cost basis and year of origination of our Investments in leases - sales-type and financing receivables, Investments in loans and securities and Other assets by the credit quality indicator we assigned to each lease or loan guarantor as of September 30, 2025 and December 31, 2024:
| Amortized Cost Basis by Year of Origination as of September 30, 2025 (1)
(In thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Total
Ba2 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,854,002 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,854,002 |
Ba3 | — |  |  | — |  |  | — |  |  | 13,041,180 |  |  | 2,191,905 |  |  | 18,420,044 |  |  | 33,653,129 |
B1 | — |  |  | — |  |  | — |  |  | 2,388,638 |  |  | — |  |  | 926,711 |  |  | 3,315,349 |
B2 | — |  |  | — |  |  | 449,223 |  |  | — |  |  | — |  |  | — |  |  | 449,223 |
B3 | — |  |  | — |  |  | 287,053 |  |  | 300,829 |  |  | — |  |  | 891,294 |  |  | 1,479,176 |
Caa1 | — |  |  | — |  |  | 395,709 |  |  | — |  |  | — |  |  | 343,409 |  |  | 739,118 |
N/A (2) | 573,099 |  |  | 348,782 |  |  | 1,080,107 |  |  | 799,044 |  |  | — |  |  | — |  |  | 2,801,032 |
Total | $ | 573,099 |  |  | $ | 348,782 |  |  | $ | 2,212,092 |  |  | $ | 21,383,693 |  |  | $ | 2,191,905 |  |  | $ | 20,581,458 |  |  | $ | 47,291,029 |
| Amortized Cost Basis by Year of Origination as of December 31, 2024 (1)
(In thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Total
Ba2 | $ | — |  |  | $ | — |  |  | $ | 4,795,479 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,795,479 |
Ba3 | — |  |  | — |  |  | 12,882,102 |  |  | 2,182,313 |  |  | 5,667,136 |  |  | 12,634,167 |  |  | 33,365,718 |
B1 | — |  |  | — |  |  | 2,359,188 |  |  | — |  |  | — |  |  | 924,344 |  |  | 3,283,532 |
B2 | — |  |  | 447,554 |  |  | — |  |  | — |  |  | 887,545 |  |  | — |  |  | 1,335,099 |
B3 | — |  |  | 667,922 |  |  | 299,859 |  |  | — |  |  | — |  |  | 341,426 |  |  | 1,309,207 |
N/A (2) | 313,761 |  |  | 987,422 |  |  | 700,961 |  |  | — |  |  | — |  |  | — |  |  | 2,002,144 |
Total | $ | 313,761 |  |  | $ | 2,102,898 |  |  | $ | 21,037,589 |  |  | $ | 2,182,313 |  |  | $ | 6,554,681 |  |  | $ | 13,899,937 |  |  | $ | 46,091,179 |
____________________ (1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments. (2)We estimate the CECL allowance for our loan investments, and certain of our lease investments with similar credit characteristics, using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.

X
- References No definition available. + Details
Name: | us-gaap_CreditLossAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-42 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-44 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-21 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-4 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-11 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-7 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-8 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 20 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-20 + Details
Name: | us-gaap_CreditLossFinancialInstrumentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration