Fair Values (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of assets and liabilities recorded at fair value on a recurring and non-recurring basis

The following fair value hierarchy table summarizes the Company’s assets and liabilities recorded at fair value on a recurring and non-recurring basis by the above categories ($ in thousands):


	Fair Value Using
			Quoted
			market		Significant
			prices in		other		Significant
			active		observable		unobservable
			markets		inputs		inputs
	Total		(Level 1)		(Level 2)		(Level 3)
As of September 30, 2021
Recurring basis:
Derivative liabilities⁽¹⁾	$	11,723	$	—	$	11,723	$	—
Available-for-sale securities⁽¹⁾		27,535		—		—		27,535
Non-recurring basis:
Impaired real estate available and held for sale⁽²⁾		1,682		—		—		1,682
Other investments⁽³⁾		98,461		—		98,461		—

As of December 31, 2020
Recurring basis:
Derivative liabilities⁽¹⁾		18,926		—		18,926		—
Available-for-sale securities⁽¹⁾		25,274		—		—		25,274
Non-recurring basis:
Impaired land and development⁽⁴⁾		6,078		—		—		6,078

(1)

The fair value of the Company’s derivatives are based upon widely accepted valuation techniques utilized by a third-party specialist using observable inputs such as interest rates and contractual cash flow and are classified as Level 2. The fair value of the Company’s available-for-sale securities are based upon unadjusted third-party broker quotes and are classified as Level 3.

(2)	The Company recorded a $0.4 million impairment on an operating property held for sale with an estimated fair value of $1.7 million. The estimated fair value is based on an executed sales contract with a third party.

(3)	During the nine months ended September 30, 2021, the Company identified an observable price change in an equity security held by the Company as evidenced by an orderly private issuance of similar securities by the same issuer and, as such, classified such observable price change as Level 2.

(4)	The Company recorded a $1.3 million impairment on a land and development asset with an estimated fair value of $6.1 million. The estimated fair value is based on future cash flows expected to be received.

Summary of changes in Level 3 available-for-sale securities reported at fair value

The following table summarizes changes in Level 3 available-for-sale securities reported at fair value on the Company’s consolidated balance sheets for the nine months ended September 30, 2021 and 2020 ($ in thousands):


	2021		2020
Beginning balance	$	25,274	$	23,896
Purchases		3,375		—
Repayments		(201)		(460)
Unrealized gains (losses) recorded in other comprehensive income		(913)		1,195
Ending balance	$	27,535	$	24,631

Schedule of carrying value and fair value of financial instruments


	As of September 30, 2021				As of December 31, 2020
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Net investment in leases⁽¹⁾	$	477	$	497	$	429	$	431
Loans receivable and other lending investments, net⁽¹⁾		406		436		732		772
Cash and cash equivalents⁽²⁾		299		299		99		99
Restricted cash⁽²⁾		56		56		52		52
Loan participations payable, net⁽¹⁾		—		—		43		43
Debt obligations, net⁽¹⁾⁽³⁾		3,283		3,643		3,287		3,414

(1)	The fair value of the Company’s net investment in leases, loans receivable and other lending investments, net, loan participations payable, net and debt obligations, net are classified as Level 3 within the fair value hierarchy.

(2)

The Company determined the carrying values of its cash and cash equivalents and restricted cash approximated their fair values. Restricted cash is recorded in “Deferred expenses and other assets, net” on the Company’s balance sheet. The fair value of the Company’s cash and cash equivalents and restricted cash are classified as Level 1 within the fair value hierarchy.

(3)	As of September 30, 2021 and December 31, 2020, the fair value of the Company’s 3.125% Senior Convertible Notes was $527.2 million and $338.8 million, respectively.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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