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Fair Value
 12 Months Ended
Dec. 31, 2024
Fair Value  
Fair Value

7.

Fair Value

ASC 820 Fair Value Measurement (ASC 820), emphasizes that fair value is a market-based measurement that should be determined using assumptions market participants would use in pricing an asset or liability. The standard establishes a hierarchical disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets or liabilities at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the asset or liability. Assets or liabilities with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

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The following table presents the fair value measurement hierarchy levels required under ASC 820 for the estimated fair values of the Company’s financial instruments that are not measured at fair value on a recurring basis:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

    

December 31, 2024

    

December 31, 2023

​

​

Fair Value

​

Carrying

    

Estimated

​

Carrying

    

Estimated

in thousands

​

Hierarchy

​

Amount

​

Fair Value

​

Amount

​

Fair Value

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash and Restricted cash

 

Level 1

​

$

167,845

​

$

167,845

​

$

43,845

​

$

43,845

Accounts receivable, net (a)

 

Level 3

​

 

5,246

​

 

5,246

​

 

13,672

​

 

13,672

Liabilities:

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Fixed-rate debt (b)

 

Level 2

​

 

41,087

​

 

40,032

​

 

42,990

​

 

38,906

Variable-rate debt (b)

 

Level 2

​

$

61,300

​

$

61,300

​

 

115,000

​

 

115,000

(a)Accounts receivable, net is shown net of an allowance of $2.6 million at December 31, 2024 and $1.4 million at December 31, 2023, respectively. Refer to Note 1 – Summary of Significant Accounting Policies for additional information on the allowance.
(b)Excludes related unamortized financing costs.

The carrying amounts of Cash and Restricted cash and Accounts receivable, net approximate fair value because of the short‑term maturity of these instruments.

The fair value of fixed-rate debt in the table above was estimated based on a discounted future cash payment model, which includes risk premiums and risk-free rates derived from the SOFR or U.S. Treasury obligation interest rates as of December 31, 2024. Refer to Note 6 – Mortgages Payable, Net for additional information. The discount rates reflect the Company’s judgment as to what the approximate current lending rates for loans or groups of loans with similar maturities and credit quality would be if credit markets were operating efficiently and assuming that the debt is outstanding through maturity.

The carrying amount for the Company’s variable-rate debt approximates fair value given that the interest rate is variable and adjusts with current market rates for instruments with similar risks and maturities.

The below table includes non-financial assets that were measured at fair value on a non-recurring basis resulting in the properties and investments being impaired:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements Using

​

​

​

​

​

Quoted Prices in Active

​

Significant Other 

​

Significant Unobservable 

​

​

Total Fair Value 

​

 Markets for Identical 

​

Observable Inputs

​

Inputs

thousands

    

Measurement (a)

    

(Level 1)

    

 (Level 2)

    

(Level 3)

2023

​

​

​

​

​

​

​

​

​

​

​

​

Net investment in real estate

 

$

321,180

​

$

—

​

$

—

​

$

321,180

Investments in unconsolidated ventures

 

$

40,225

​

$

—

​

$

—

​

$

40,225

(a)The fair value was measured as of the impairment date in the third quarter of 2023 using a discounted cash flow analysis to determine fair value, with capitalization rates ranging from 5.5% to 6.75%, discount rates ranging from 8.5% to 13.3%, and restaurant multiples ranging from 8.3 to 11.8. Refer to Note 3 – Impairment for additional information.