Quarterly report [Sections 13 or 15(d)]

Credit Losses on Financial Assets and Other Instruments

v3.26.1
Credit Losses on Financial Assets and Other Instruments
 6 Months Ended
Jun. 30, 2026
Credit Loss [Abstract]  
Credit Losses on Financial Assets and Other Instruments Credit Losses on Financial Assets and Other Instruments
The table below presents the activity for our allowance for credit losses for the six months ended June 30, 2026 and 2025 (in thousands):
Investing Receivables Tenant Notes
Receivable (1)		 Investments in Sales-Type Leases Other Assets (2) Total
December 31, 2025 $ 3,575  $ 532  $ —  $ 109  $ 4,216 
Net credit loss (recoveries) expense (3) (1,337) (35) 60  (35) (1,347)
June 30, 2026 $ 2,238  $ 497  $ 60  $ 74  $ 2,869 
December 31, 2024 $ 2,792  $ 615  $ —  $ 75  $ 3,482 
Net credit loss expense (recoveries) (3) 1,774  (43) —  (29) 1,702 
June 30, 2025 $ 4,566  $ 572  $ —  $ 46  $ 5,184 
(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.
(2)Includes insignificant amounts in the lines entitled “accounts receivable, net” and “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 table below 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 June 30, 2026 (in thousands):
Origination Year
2021 and Earlier
 2022 2023 2024 2025 2026 Total
Investing receivables
Credit risk classification
Investment grade $ 64,201  $ —  $ 1,916  $ —  $ —  $ —  $ 66,117 
Non-investment grade —  —  —  —  8,758  —  8,758 
Total $ 64,201  $ —  $ 1,916  $ —  $ 8,758  $ —  $ 74,875 
Tenant notes receivable
Credit risk classification
Investment grade $ 339  $ —  $ —  $ —  $ —  $ —  $ 339 
Non-investment grade 1,148  —  —  285  17  —  1,450 
Total $ 1,487  $ —  $ —  $ 285  $ 17  $ —  $ 1,789 
Investments in sales-type leases
Credit risk classification
Investment grade $ 3,483  $ —  $ —  $ —  $ —  $ 44,827  $ 48,310 
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 June 2026.

None of the investing and tenant notes receivables set forth above were past due, which we define as being delinquent by more than three months from the due date, as of June 30, 2026.
We did not have any tenant notes receivable on nonaccrual status as of June 30, 2026 and December 31, 2025. We did not recognize any interest income on tenant notes receivable on nonaccrual status during the three and six months ended June 30, 2026 and 2025.