v3.24.2
Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of Net Investments in Finance Leases and Loans Receivable
Finance Receivables

Net investments in finance leases and loans receivable are summarized as follows (in thousands):
Maturity DateJune 30, 2024December 31, 2023
Net investments in direct financing leases (a)
2024 – 2036$320,714 $431,328 
Sale-leaseback transactions accounted for as loans receivable (b)
2038 – 2052311,068 236,611 
Net investments in sales-type leases (c)
202420,885 835,734 
Secured loans receivable (d)
202415,000 11,250 
$667,667 $1,514,923 
__________
(a)Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases.
(b)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $6.2 million and $0.8 million as of June 30, 2024 and December 31, 2023, respectively.
(c)These investments are assessed for credit loss allowances but no such allowances were recorded as of June 30, 2024 or December 31, 2023.
(d)Amounts are net of allowance for credit losses of $2.1 million as of December 31, 2023. No such allowance was recorded as of June 30, 2024.
Net Investments in Direct Financing Leases
 
Net investments in direct financing leases is summarized as follows (in thousands):
June 30, 2024December 31, 2023
Lease payments receivable$197,995 $285,512 
Unguaranteed residual value302,667 434,234 
500,662 719,746 
Less: unearned income(168,306)(251,441)
Less: allowance for credit losses (a)
(11,642)(36,977)
$320,714 $431,328 
__________
(a)During the six months ended June 30, 2024 and 2023, we recorded a net release of allowance for credit losses of $8.4 million and $3.6 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2024, we reduced the allowance for credit losses balance by $17.0 million, in connection with the reclassification of certain properties from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below.
Schedule of Income from Finance Leases and Loans Receivable
Income from finance leases and loans receivable is summarized as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net investments in direct financing leases$8,763 $12,751 $17,692 $25,449 
Sale-leaseback transactions accounted for as loans receivable5,620 3,684 9,521 7,343 
Net investments in sales-type leases578 9,688 11,576 12,917 
Secured loans receivable— 1,188 1,965 2,357 
$14,961 $27,311 $40,754 $48,066 
Schedule of Net Investments in Sales-Type Leases
Net investments in sales-type leases is summarized as follows (in thousands):
June 30, 2024December 31, 2023
Lease payments receivable (a)
$21,460 $849,881 
21,460 849,881 
Less: unearned income(575)(14,147)
$20,885 $835,734 
__________
(a)Includes estimated purchase price and total rents owed.
Schedule of Loans Receivable
During the six months ended June 30, 2024, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands):
Property Location(s)Number of PropertiesDate of AcquisitionProperty TypeTotal Investment
Various, Italy (a)
43/26/2024Industrial, Warehouse $83,890 
4$83,890 
__________
(a)Amount reflects the applicable exchange rate on the date of transaction.
Schedule of Finance Receivables Credit Quality Indicators
A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands):
Number of Tenants / Obligors atCarrying Value at
Internal Credit Quality IndicatorJune 30, 2024December 31, 2023June 30, 2024December 31, 2023
1 – 31718$592,885 $1,338,877 
47892,614 215,953 
5——— — 
$685,499 $1,554,830