XML 39 R27.htm IDEA: XBRL DOCUMENT
v3.23.3

Fair Value of Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: •Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; •Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and •Level 3: prices or valuation techniques where little or no market data is available that require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:
|  | September 30, 2023 |  | December 31, 2022
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Interest rate derivative assets(1) |  | $ | — |  |  | $ | 19,559 |  |  | $ | — |  |  | $ | 19,559 |  |  | $ | — |  |  | $ | 9,292 |  |  | $ | — |  |  | $ | 9,292 |
Interest rate derivative liabilities(2) |  | $ | — |  |  | $ | (2,221) |  |  | $ | — |  |  | $ | (2,221) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Non-real estate investments measured at fair value(1) |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |  |  | $ | 544 |  |  | $ | — |  |  | $ | — |  |  | $ | 544 |
Stock purchase warrant(1) |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | 95 |  |  | $ | — |  |  | $ | 95 |
Earnout liability(2) |  | $ | — |  |  | $ | — |  |  | $ | (6,283) |  |  | $ | (6,283) |  |  | $ | — |  |  | $ | — |  |  | $ | (9,300) |  |  | $ | (9,300) |
Non-real estate investments measured at NAV(1)(3) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 48,830 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 46,785 |
___________ 1.Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2.Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3.According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Level 1 items include an investment in common stock of a publicly traded company which is valued on a quarterly basis using the closing stock price. Level 2 items include an interest rate cap and swaps which are valued on a quarterly basis using a linear regression model, as well as investments in preferred stock and warrants of a publicly traded company value which are valued on a quarterly basis using the closing stock price and a Black-Scholes model, respectively. Level 3 items include the earnout liability which is valued on a quarterly basis using a probability-weighted discounted cash flow model. Inputs to the model include the discount rate and probability-weighted earnout payments based on a Monte Carlo simulation with one million trials. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. The following table summarizes changes in the carrying amount of the earnout liability during the nine months ended September 30, 2023:
Balance, December 31, 2022 |  | $ | (9,300) |
Remeasurement to fair value |  | 3,017
Balance, September 30, 2023 |  | $ | (6,283) |
The remeasurement gain of $3.0 million recognized during the nine months ended September 30, 2023 is recorded in transaction-related expenses on the Consolidated Statements of Operations. Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. The fair values of debt are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of:
| September 30, 2023 |  | December 31, 2022
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
LIABILITIES |  |  |  |  |  |  |
Unsecured debt(1) | $ | 2,635,000 |  |  | $ | 2,200,793 |  |  | $ | 2,660,000 |  |  | $ | 2,364,871 |
Secured debt(1) | $ | 1,798,118 |  |  | $ | 1,776,417 |  |  | $ | 1,950,088 |  |  | $ | 1,927,297 |
Consolidated joint venture partner debt | $ | 66,136 |  |  | $ | 59,558 |  |  | $ | 66,136 |  |  | $ | 60,327 |
_________________ 1.Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums.

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

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration