v3.25.4
Fair Value of Derivatives and Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Derivatives Not Designated as Hedging Instruments

As of December 31, 2025, the Company had the following outstanding interest rate cap that was not designated as a hedge in qualifying hedging relationships (dollars in thousands):

 

Derivative

 

Notional

 

 

Expiration Date

 

Index

 

Index as of December 31, 2025

 

 

Strike Rate

Interest Rate Cap

 

$

82,860

 

 

7/9/2027

 

One-Month Term SOFR

 

 

3.6875

%

 

4.25 %

Schedule of Derivative Financial Instruments Classification

The table below presents the fair value of the Company’s derivative financial instruments, which are presented on the consolidated balance sheets as of December 31, 2025 and December 31, 2024 (in thousands):

 

 

 

 

 

Asset Derivatives

 

 

 

Balance Sheet Location

 

December 31, 2025

 

 

December 31, 2024

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

Interest rate swaps

 

Interest rate derivatives, at fair value

 

$

 

 

$

11,276

 

 

 

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

Interest rate swaps

 

Interest rate derivatives, at fair value

 

 

 

 

 

3,450

 

Interest rate caps

 

Interest rate derivatives, at fair value

 

 

21

 

 

 

6,563

 

Total

 

 

 

$

21

 

 

$

21,289

 

 

Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements but either do not meet the strict requirements to apply hedge accounting in accordance with FASB ASC 815, Derivatives and Hedging, or the Company has elected not to designate such derivatives as hedges. Changes in the fair value of derivatives not designated in hedging relationships are recognized as either increases or decreases to interest expense. The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2025, 2024 and 2023 (in thousands):

 

 

 

Amount of gain (loss) recognized in OCI

 

 

 

 

Amount of gain (loss) reclassified from OCI into income

 

 

 

 

2025

 

 

 

2024

 

 

 

2023

 

 

Location of gain (loss) reclassified from OCI into income

 

 

2025

 

 

 

2024

 

 

 

2023

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

(4,666

)

 

$

9,787

 

 

$

(15,050

)

 

Interest expense

 

$

9,871

 

 

$

29,444

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain (loss) recognized in income

 

 

 

 

 

 

 

 

 

 

 

Location of gain (loss) recognized in income

 

 

2025

 

 

 

2024

 

 

 

2023

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

6,636

 

 

$

3,685

 

 

$

 

Interest rate cap

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

504

 

 

$

3,509

 

 

$

(7,319

)

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The table below presents the outstanding principal balance and estimated fair value of our debt as of December 31, 2025 and December 31, 2024 (in thousands):

 

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Outstanding Principal Balance

 

 

Estimated Fair Value

 

 

Outstanding Principal Balance

 

 

Estimated Fair Value

 

Debt

 

 

2,726,197

 

 

 

2,718,893

 

 

 

2,572,401

 

 

 

2,500,760

 

 

Schedule of Disclosure of Long-Lived Assets Held-for-sale

The following table sets forth a summary of the Company’s held for sale assets, held and used real estate assets that underwent impairment and real estate assets that underwent a casualty related impairment that were accounted for at fair value on a nonrecurring basis as of their respective measurement date (in thousands):

 

 

 

 

 

 

Fair Value Hierarchy Level

 

 

Description

 

Fair Value

 

 

Level 1

 

Level 2

 

Level 3

 

 

Assets held at December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

Fair value of real estate assets - impaired at December 31, 2025

 

$

19,257

 

 

$

 

$

 

$

19,257