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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Accordingly, such joint ventures have been consolidated, and the table below summarizes the balance sheets of consolidated VIEs, excluding the OP, in the aggregate:


(dollars in thousands)	SEPTEMBER 30, 2023
Assets:
Net real estate investments	$	72,756
Cash and cash equivalents	1,766
Receivables and other assets	2,594
Total assets	$	77,116
Liabilities:
Accrued expenses and other liabilities	$	16,909
Total equity	60,207
Total liabilities and equity	$	77,116

Schedule of Variable Interest Entities

As a result, the Company accounts for the two notes receivables as amortized cost and a joint venture arrangement under the equity method. See below for additional information regarding the Company's unconsolidated VIEs.


(dollars in thousands) ORIGINATION DATE	LOCATION	SOURCE	CARRYING AMOUNT		MAXIMUM EXPOSURE TO LOSS
2021	Houston, TX 1	Note receivable	$	30,797	$	31,150
2021	Charlotte, NC 1	Note receivable	5,743		6,000
2022	Texas 2	Joint venture	63,579		63,579

1Assumed mortgage note receivable in connection with the Merger.

2Includes investments in seven properties.

Schedule of Accounts, Notes, Loans and Financing Receivable

See below for additional information regarding the Company's financing receivables.


(dollars in thousands) ORIGINATION DATE	LOCATION	INTEREST RATE	CARRYING VALUE as of SEPTEMBER 30, 2023
May 2021	Poway, CA	5.73%	$	113,634
November 2021	Columbus, OH	6.48%	7,341
			$	120,975


(dollars in thousands)	ORIGINATION	MATURITY	STATED INTEREST RATE		MAXIMUM LOAN COMMITMENT		OUTSTANDING as of SEPT 30, 2023		ALLOWANCE FOR CREDIT LOSSES		FAIR VALUE DISCOUNT AND FEES		CARRYING VALUE as of SEPT 30, 2023
Mezzanine loans
Texas	6/24/2021	6/24/2024	8.00	%	$	54,119	$	54,119	$	(5,196)	$	(3,067)	$	45,856

Mortgage loans
Texas	6/30/2021	12/31/2023	7.00	%	31,150		31,150		—		(353)		30,797
North Carolina	12/22/2021	12/22/2024	8.00	%	6,000		6,000		—		(257)		5,743
Florida	5/17/2022	2/27/2026	6.00	%	65,000		27,651		—		(49)		27,602
California	3/30/2023	3/29/2026	6.00	%	45,000		45,000		—		—		45,000
					147,150		109,801		—		(659)		109,142

					$	201,269	$	163,920	$	(5,196)	$	(3,726)	$	154,998

Schedule of Company's Allowance For Credit Losses

The following table summarizes the Company's allowance for credit losses on real estate notes receivable:


Dollars in thousands	NINE MONTHS ENDED SEPTEMBER 30, 2023		TWELVE MONTHS ENDED DECEMBER 31, 2022
Allowance for credit losses, beginning of period	$	—	$	—
Credit loss reserves	5,196		—
Allowance for credit losses, end of period	$	5,196	$	—

Schedule of Disaggregation of revenue

Below is a detail of the amounts by category:


	THREE MONTHS ENDED September 30,				NINE MONTHS ENDED September 30,
in thousands	2023		2022		2023		2022
Type of Revenue
Parking income	$	2,751	$	2,428	$	7,511	$	6,100

Management fee income 1	1,552		1,426		5,122		2,864
Miscellaneous	358		203		875		306
	$	4,661	$	4,057	$	13,508	$	9,270

1 Includes the recovery of certain expenses under the financing receivable as outlined in the management agreement.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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