v3.25.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Swap Instruments
The following table summarizes the Company’s interest rate swap instruments (in thousands):
Fair Value(2)
Date Entered(1)
Maturity DateHedge DesignationNotional AmountPay RateReceive RateJune 30,
2025		December 31,
2024
Interest rate swap assets:
April 2022May 2026Cash flow$51,100 4.99 %
USD-SOFR w/ -5 Day Lookback + 2.50%
$602 $1,050 
April 2022May 2026Cash flow91,000 4.54 %
USD-SOFR w/ -5 Day Lookback + 2.05%
1,073 1,870 
August 2022February 2027Cash flow250,000 2.60 %1 mo. USD-SOFR CME Term3,704 7,224 
August 2022August 2027Cash flow250,000 2.54 %1 mo. USD-SOFR CME Term4,543 9,122 
May 2023(3)(4)
May 2028Cash flow400,000 3.59 %USD-SOFR w/ -5 Day Lookback— 4,887 
January 2024(5)
February 2029Cash flow750,000 3.59 %USD-SOFR w/ -5 Day Lookback— 10,967 
      Total interest rate swap assets
$9,922 $35,120 
Interest rate swap liabilities:
May 2023(3)(4)
May 2028Cash flow$400,000 3.59 %USD-SOFR w/ -5 Day Lookback$(2,642)$— 
January 2024(5)
February 2029Cash flow750,000 3.59 %USD-SOFR w/ -5 Day Lookback(6,370)— 
      Total interest rate swap liabilities$(9,012)$— 
_____________________________
(1)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.
(2)Derivative assets are recorded at fair value in other assets, net and derivative liabilities are recorded at fair value in accounts payable, accrued liabilities, and other liabilities on the Consolidated Balance Sheets.
(3)Includes interest rate swap instruments acquired as part of the Merger (see Note 3). These interest rate swap instruments were redesignated as cash flow hedges on the Closing Date. As a result of the Merger, the aggregate fair value of these interest rate swap instruments was determined to be $7 million on March 1, 2024, which was recognized within other assets, net on the Consolidated Balance Sheets on the Closing Date. The aggregate fair value as of the Closing Date is being amortized into interest expense on the Consolidated Statements of Operations over the terms of the related interest rate swap instruments. During the three months ended June 30, 2025 and 2024, the Company recognized $0.4 million and $0.7 million, respectively, of related amortization into interest expense. During the six months ended June 30, 2025 and 2024, the Company recognized $0.7 million and $0.9 million, respectively, of related amortization into interest expense.
(4)Includes two interest rate swap instruments each with notional amounts of $110 million and one interest rate swap instrument with a notional amount of $180 million.
(5)Includes the following: (i) two interest rate swap instruments each with a pay rate of 3.56% and $50 million notional amount; (ii) three interest rate swap instruments each with a pay rate of 3.57% and $50 million notional amount; (iii) one interest rate swap instrument with a pay rate of 3.58% and $100 million notional amount; (iv) five interest rate swap instruments each with a pay rate of 3.60% and $50 million notional amount; and (v) three interest rate swap instruments each with a pay rate of 3.61% and $50 million notional amount.