v3.25.4
Derivative Financial Instruments
 9 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative financial instruments to minimize the risks and/or costs associated with the Company’s financing transactions. The derivative in place as of December 31, 2025 qualifies as a cash flow hedge under the hedge accounting requirements of ASC 815.
Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income for our interest rate swap will be reclassified to interest expense as forecasted interest payments are made on the Company’s mortgage loans. Refer to Note 2 - Summary of Significant Accounting Policies and Estimates for additional detail.
Interest Rate Contracts
Certain of the Company’s forecasted financing transactions expose the Company to interest rate risks, which include exposure to variable interest rates on certain mortgage loans secured by the Company’s data center properties. The Company uses derivative financial instruments to minimize the risks and/or costs associated with the Company’s financing and to limit the Company’s exposure to the future variability of interest rates. To mitigate this risk, the Company enters into derivative financial instruments with counterparties it believes to have appropriate credit ratings and that are major financial institutions with which the Company and its affiliates may also have other financial relationships.
The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate fluctuations. To accomplish this objective, we use interest rate swap contracts to manage our exposure on forecasted variable rate interest debt. The Company has designated its derivative financial instruments as cash flow hedges as defined under GAAP as of December 31, 2025.
The following table details the Company’s outstanding interest rate derivative contracts:
Financial InstrumentsNumber of InstrumentsWeighted Average Maturity DateNotional Amount at December 31, 2025
Derivatives Designated as Hedging instruments
Interest rate swap13/31/2031$600,000 
Total $600,000 
The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheet is detailed below.
Balance Sheet
Location		December 31, 2025
Derivatives Designated as Hedging Instruments
Interest rate swapsOther Assets$3,881 
Total Derivatives Designated as Hedging Instruments$3,881 
The following table details the effect of the Company’s derivative financial instruments designated as hedging instruments on the Consolidated Statement of Operations during the period from Inception through December 31, 2025:
Amount of
Unrealized Gain
Recognized
in OCI		Location of Loss Recognized in
Income on Derivatives		Amount of Loss
Reclassified from
Accumulated OCI into
Income
December 31, 2025December 31, 2025
Derivatives Designated as Hedging Instruments
Interest rate swap$2,887 
z
Interest Expense$(15)
Total Derivatives Designated as Hedging Instruments$2,887 $(15)