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Impairment Charges | 9 Months Ended
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Sep. 30, 2024
Asset Impairment Charges [Abstract] |
Impairment Charges | 9. Impairment Charges For the nine months ended September 30, 2024, the Company recorded impairment charges aggregating $66.6 million, based on the difference between the carrying value of the assets and the estimated fair market value. The impairment charges recorded were triggered by a change in the hold period assumptions. Items Measured at Fair Value The Company is required to assess the fair value of certain impaired consolidated investments. The valuation of impaired real estate assets is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each asset, as well as the income capitalization approach considering prevailing market capitalization rates, analysis of recent comparable sales transactions, actual sales negotiations and bona fide purchase offers received from third parties and/or consideration of the amount that currently would be required to replace the asset, as adjusted for obsolescence. In general, the Company considers multiple valuation techniques when measuring fair value of an investment. However, in certain circumstances, a single valuation technique may be appropriate. These valuations are calculated based on market conditions and assumptions made by management at the time the valuation adjustments and impairments were recorded, which may differ materially from actual results if market conditions or the underlying assumptions change. The following table presents information about the fair value of real estate that was impaired, and therefore, measured on a fair value basis, along with the related impairment charge for the nine months ended September 30, 2024. The table also indicates the fair value hierarchy of the valuation techniques used by the Company to determine such fair value (in millions):
|  | Fair Value Measurements |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Total Impairment Charges |
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets held and used |  | $ | — |  |  | $ | — |  |  | $ | 138.2 |  |  | $ | 138.2 |  |  | $ | 66.6 |
The following table presents quantitative information about the significant unobservable inputs used by the Company to determine the fair value (in millions, except per square foot):
|  | Quantitative Information about Level 3 Fair Value Measurements |
|  | Fair Value at |  |  | Valuation |  |  |  |  |
Description |  | September 30, 2024 |  |  | Technique |  | Unobservable Inputs |  | Range |
Impairment of consolidated assets |  | $ | 22.2 |  |  | Indicative Bid |  | Indicative Bid(A) |  | N/A |
|  |  | 116.0 |  |  | Income Capitalization Approach |  | Market Capitalization Rate |  | 7.0%—7.7% |
|  |  |  |  |  |  | Cost per square foot |  | $ | 44 |
(A) Fair value measurements based upon an indicative bid and developed by third-party sources (including offers and comparable sales values), subject to the Company’s corroboration for reasonableness. The Company does not have access to certain unobservable inputs used by these third parties to determine these estimated fair values.

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- Definition The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported. + References No definition available. + Details
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