SPIRIT REALTY CAPITAL, INC. - 10-Q filing on 2019-08-07

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Liabilities at Fair Value on Recurring Basis

The following table sets forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis (in thousands):

			Fair Value Hierarchy Level
Description	Fair Value		Level 1		Level 2		Level 3
June 30, 2019
Derivatives:
Interest rate swaps financial liabilities	$	20,934	$	—	$	20,934	$	—
December 31, 2018
Derivatives:
Interest rate swaps financial liabilities	$	7,159	$	—	$	7,159	$	—

Schedule of Assets at Fair Value on Nonrecurring Basis

The following table sets forth the Company’s assets that were accounted for at fair value on a nonrecurring basis as of June 30, 2019 and December 31, 2018 (in thousands):

			Fair Value Hierarchy Level
Description	Fair Value		Level 1		Level 2		Level 3
June 30, 2019
Long-lived assets held and used	$	7,926	$	—	$	—	$	7,926
Long-lived assets held for sale	$	499	$	—	$	—	$	499

December 31, 2018
Long-lived assets held and used	$	14,866	$	—	$	—	$	14,866
Long-lived assets held for sale	$	7,695	$	—	$	—	$	7,695

Fair Value Inputs of Long-Lived Assets Held and Used and Held for Sale

The following tables provides information about the price per square foot of comparable properties input used:

	June 30, 2019					December 31, 2018
Description	Range	Weighted Average		Square Footage		Range		Weighted Average		Square Footage
Long-lived assets held and used by asset type
Retail	$32.85 - $740.74	$	276.84		103,784	$	—	$	—		—

The following table provides information about the price per square foot based on a listing price and broker opinion of value used as inputs (price per square foot in dollars):

	June 30, 2019						December 31, 2018
Description	Range		Weighted Average		Square Footage		Range		Weighted Average		Square Footage
Long-lived assets held and used by asset type
Retail	$37.88 - $137.25		$	48.95		52,866	$185.42 - $638.72		$	507.11		27,302
Office	$	—	$	—		—	$	225.04	$	225.04		5,999

The Company estimated fair value of held for sale properties using price per square foot from the signed purchase and sale agreements as follows (price per square foot in dollars):

	June 30, 2019						December 31, 2018
Description	Range		Weighted Average		Square Footage		Range		Weighted Average		Square Footage
Long-lived assets held for sale by asset type
Retail	$	73.01	$	73.01		6,840	$	126.73	$	126.73		63,128

Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments

The following table discloses fair value information for these financial instruments (in thousands):

	June 30, 2019				December 31, 2018
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Loans receivable, net	$	38,220	$	38,760	$	47,044	$	48,740
Investment in Master Trust 2014		33,490		34,557		33,535		33,811
Revolving credit facilities		—		—		146,300		146,731
Term loans, net ⁽¹⁾		814,336		850,985		419,560		424,670
Senior Unsecured Notes, net⁽¹⁾		691,940		715,497		295,767		291,696
Mortgages and notes payable, net⁽¹⁾		286,312		305,845		463,196		487,548
Convertible Notes, net⁽¹⁾		333,427		352,286		729,814		740,330

⁽¹⁾	^{The carrying value of the debt instruments are net of unamortized deferred financing costs and certain debt discounts/premiums.}