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Fair Value of Assets and Liabilities
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities
The following table presents certain of our assets that are measured at fair value at September 30, 2025 and December 31, 2024, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.
As of September 30, 2025As of December 31, 2024
DescriptionCarrying ValueCarrying Value
Recurring Fair Value Measurements Assets:  
Investment in unconsolidated joint venture (Level 3) (1)
$67,060 $81,949 
Investment in unconsolidated joint venture (Level 3) (2)
$45,709 $44,910 
Interest rate cap (Level 2) (3)
$1 $— 
Non-Recurring Fair Value Measurements Assets:
Real estate properties held for sale (Level 2) (4)
$129,922 $— 
(1)The 10% equity interest we own in the Seaport JV is included in investments in unconsolidated joint ventures in our condensed consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The significant unobservable inputs used in the fair value analysis are a discount rate of 7.00%, an exit capitalization rate of 6.00%, a holding period of 10 years and market rents. The assumptions made in the fair value analysis are based on the location, type and nature of the property, and current and anticipated market conditions. See Note 3 for further information regarding this joint venture.
(2)The 20% equity interest we own in the LSMD JV is included in investments in unconsolidated joint ventures in our condensed consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The significant unobservable inputs used in the fair value analysis are discount rates of between 6.25% and 8.75%, exit capitalization rates of between 5.25% and 8.00%, holding periods of 10 years and market rents. The assumptions we made in the fair value analysis are based on the location, type and nature of each property, and current and anticipated market conditions. See Note 3 for further information regarding this joint venture.
(3)The fair value of our interest rate cap derivative is based on prevailing market prices in secondary markets for similar derivative contracts as of the measurement date.
(4)We have assets in our condensed consolidated balance sheets that are measured at fair value on a non-recurring basis. During the three months ended September 30, 2025, we recorded impairment charges of $57,331 to reduce the carrying value of 12 medical office properties classified as held for sale to their estimated sales price, less estimated costs to sell, of $82,288 under agreements to sell that we have entered into with third parties. During the three months ended September 30, 2025, we also recorded impairment
charges of $35,912 to reduce the carrying value of 24 senior living communities classified as held for sale to their estimated sales price, less estimated costs to sell, of $47,634 under agreements or letters of intent to sell that we have entered into with third parties. See Note 3 for further information about impairment charges and the properties we have classified as held for sale.
In addition to the assets described in the table above, our financial instruments at September 30, 2025 and December 31, 2024 included cash and cash equivalents, restricted cash, certain other assets, our revolving credit facility, senior unsecured notes, senior secured notes, secured debt and finance leases and certain other unsecured obligations and liabilities. The fair values of these financial instruments approximated their carrying values in our condensed consolidated financial statements as of such dates, except as follows:
 As of September 30, 2025As of December 31, 2024
Description
Carrying Value (1)
Estimated Fair Value
Carrying Value (1)
Estimated Fair Value
Senior unsecured notes, 9.750% coupon rate, due 2025
$— $— $379,392 $379,970 
Senior secured notes, zero coupon rate, due 2026
322,734 330,692 826,974 885,108 
Senior unsecured notes, 4.750% coupon rate, due 2028
496,972 476,700 496,018 429,170 
Senior secured notes, 7.250% coupon rate, due 2030
364,753 381,113 — — 
Senior unsecured notes, 4.375% coupon rate, due 2031
495,346 441,700 494,702 368,240 
Senior unsecured notes, 5.625% coupon rate, due 2042
343,588 233,800 343,302 218,260 
Senior unsecured notes, 6.250% coupon rate, due 2046
244,121 176,200 243,905 157,700 
Secured debt and finance leases455,851 451,916 126,611 126,001 
 $2,723,365 $2,492,121 $2,910,904 $2,564,449 
(1)Includes unamortized net discounts, premiums and debt issuance costs, if any.
We estimated the fair values of our two issuances of senior unsecured notes due 2042 and 2046 based on the closing price on The Nasdaq Stock Market LLC, or Nasdaq, as of September 30, 2025 and December 31, 2024 (Level 1 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our three issuances of senior unsecured notes due 2025, 2028 and 2031 and our two issuances of senior secured notes due 2026 and 2030 using an average of the bid and ask price on Nasdaq on or about September 30, 2025 and December 31, 2024 (Level 2 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our secured debts by using discounted cash flows analyses and currently prevailing market terms as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP). Because Level 3 inputs are unobservable, our estimated fair values may differ materially from the actual fair values.