XML 32 R20.htm IDEA: XBRL DOCUMENT v3.25.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The Company uses interest rate cap arrangements with financial institutions to manage exposure to interest rate changes for loans with variable interest rates. As of September 30, 2025 and December 31, 2024, we had interest rate cap agreements with an aggregate notional value of $194.2 million and $185.1 million, respectively. The fair value of these derivative assets as of September 30, 2025 and December 31, 2024 was $0.1 million and $1.5 million, respectively, which was determined using significant observable inputs (Level 2), including quantitative models that utilize multiple market inputs to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions, and third-party pricing services. See “Note 15– Derivatives and Hedging.”
Financial Instruments Not Reported at Fair Value
For those financial instruments not carried at fair value, the carrying amount and estimated fair values of our financial assets and liabilities, were as follows as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025December 31, 2024
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Cash and cash equivalents$16,961 $16,961 $16,992 $16,992 
Restricted cash18,959 18,959 22,095 22,095 
Debt, excluding deferred loan costs688,128 625,495 655,156 621,597 
Liabilities held for sale 1
13,113 12,417 — — 
1 Notes payable on one community that is currently held for sale.
We believe the carrying amount of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable, and accrued liabilities approximate fair value due to their short-term nature.
The fair value of debt, excluding deferred loan costs, is estimated using discounted cash flow analysis, based on current incremental borrowing rates for similar types of borrowing arrangements, which represent Level 2 inputs as defined in ASC 820, Fair Value Measurement.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The Company adjusts the carrying amount of certain non-financial assets to fair value on a non-recurring basis when they are impaired. There were no impairment losses for the nine months ended September 30, 2024.

As of September 30, 2025, the Company’s assets measured at fair value on a non-recurring basis were as follows (in thousands):

September 30, 2025December 31, 2024
Carrying
Amount		Fair ValueCarrying
Amount		Fair Value
Assets
Assets held for sale9,3749,374— — 


During the three and nine months ended September 30, 2025, the Company recorded non-cash impairment charges of $4.7 million to “Property and equipment, net.” The fair value of the impaired assets was $9.4 million as of September 30, 2025. The fair value of the property and equipment, net was primarily determined based on market analysis, industry trends, and recent comparable sales transactions.