Quarterly report pursuant to Section 13 or 15(d)

Credit Losses on Financial Assets and Other Instruments

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Credit Losses on Financial Assets and Other Instruments
 9 Months Ended
Sep. 30, 2024
Credit Loss [Abstract]  
Credit Losses on Financial Assets and Other Instruments Credit Losses on Financial Assets and Other Instruments
The table below sets forth the activity for our allowance for credit losses for the nine months ended September 30, 2024 and 2023 (in thousands):
Investing Receivables Tenant Notes
Receivable (1)		 Other Assets (2) Total
December 31, 2023 $ 2,377  $ 666  $ 153  $ 3,196 
Net credit loss expense (recoveries) (3) 490  57  (51) 496 
September 30, 2024 $ 2,867  $ 723  $ 102  $ 3,692 
December 31, 2022 $ 2,794  $ 778  $ 268  $ 3,840 
Net credit loss expense (recoveries) (3) 829  (64) (88) 677 
Write-offs —  (33) —  (33)
September 30, 2023 $ 3,623  $ 681  $ 180  $ 4,484 
(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.
(2)The balance as of September 30, 2024 and December 31, 2023 included $46,000 and $87,000, respectively, in the line entitled “accounts receivable, net” and $56,000 and $66,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets.
(3)Included in the line entitled “interest and other income, net” on our consolidated statements of operations.

The following table presents the amortized cost basis of our investing receivables, tenant notes receivable and sales-type lease receivables by credit risk classification, by origination year as of September 30, 2024 (in thousands):
Origination Year
2019 and Earlier
 2020 2021 2022 2023 2024 Total
Investing receivables:
Credit risk classification:
Investment grade $ 69,247  $ 2,656  $ 10,623  $ —  $ 632  $ —  $ 83,158 
Non-investment grade —  —  —  3,245  —  —  3,245 
Total $ 69,247  $ 2,656  $ 10,623  $ 3,245  $ 632  $ —  $ 86,403 
Tenant notes receivable:
Credit risk classification:
Investment grade $ 591  $ 51  $ —  $ —  $ —  $ —  $ 642 
Non-investment grade 110  1,333  —  —  —  446  1,889 
Total $ 701  $ 1,384  $ —  $ —  $ —  $ 446  $ 2,531 
Sales-type lease receivables:
Credit risk classification:
Investment grade $ —  $ 4,644  $ —  $ —  $ —  $ 965  $ 5,609 
Our investment grade credit risk classification represents entities with investment grade credit ratings from ratings agencies (such as S&P Global Ratings, Moody’s Investors Service, Inc. or Fitch Ratings, Inc.), meaning that they are considered to have at least an adequate capacity to meet their financial commitments, with credit risk ranging from minimal to moderate. Our non-investment grade credit risk classification represents entities with either no credit agency credit ratings or ratings deemed to be sub-investment grade; we believe that there is significantly more credit risk associated with this classification. The credit risk classifications of our investing receivables and tenant notes receivable were last updated in September 2024.

An insignificant portion of the tenant notes receivable set forth above was past due, which we define as being delinquent by more than three months from the due date.
Tenant notes receivable on nonaccrual status as of September 30, 2024 and December 31, 2023 were not significant. We did not recognize any interest income on tenant notes receivable on nonaccrual status during the nine months ended September 30, 2024 and 2023.