Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Fair Value Measurements, Recurring and Nonrecurring

The table below presents certain of our assets measured on a recurring and nonrecurring basis at fair value as of 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:


			Quoted Prices in		Significant Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
As of September 30, 2025
Recurring:
Investment in unconsolidated joint venture	$	119,100	$	—	$	—	$	119,100
Interest rate caps	$	5,340	$	—	$	5,340	$	—
Nonrecurring:
Real estate properties (1)	$	3,790	$	—	$	—	$	3,790

As of December 31, 2024
Recurring:
Investment in unconsolidated joint venture	$	116,732	$	—	$	—	$	116,732
Interest rate caps	$	16,916	$	—	$	16,916	$	—

(1)We recognized a loss on impairment of real estate of $6,081 during the nine months ended September 30, 2025, to reduce the carrying value of one property that was classified as held for sale as of September 30, 2025 to its fair value less estimated costs to sell, based on market-based comparative valuations (Level 3 inputs). See Note 3 for further information on our held for sale properties.

Schedule of Quantitative Information of Significant Unobservable Inputs

The discount rates, exit capitalization rates and holding periods used to determine the fair value of our investment in the unconsolidated joint venture are significant unobservable inputs and are shown in the table below:

Exit

Valuation

Discount

Capitalization

Holding

Technique

Rates

Periods

As of September 30, 2025

Investment in unconsolidated joint venture

Discounted cash flow

6.25% - 8.00%

5.25% - 6.50%

10 - 11 years

As of December 31, 2024

Investment in unconsolidated joint venture

Discounted cash flow

6.25% - 8.25%

5.25% - 6.50%

10 - 12 years

Schedule of the Change in Fair Value of the Investment in the Unconsolidated Joint Venture

The table below presents a summary of the changes in fair value for our investment in the unconsolidated joint venture:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Beginning balance	$	117,854	$	117,451	$	116,732	$	115,360
Equity in earnings of unconsolidated joint venture	2,236		1,161		5,338		5,232
Distributions from unconsolidated joint venture	(990)		(990)		(2,970)		(2,970)
Ending balance	$	119,100	$	117,622	$	119,100	$	117,622

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details