Derivatives |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivatives | 16. Derivatives The Company uses derivative financial instruments to minimize the risks and costs associated with the Company’s investments and financing transactions. The Company has not designated any of its derivative financial instruments as hedges as defined under GAAP. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements and other identified risks. The use of derivative financial instruments involves certain risks, including the risk that counterparties do not perform as agreed. 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. Interest rate contracts Certain of the Company's transactions expose the Company to interest rate risk on loans secured by the Company's real estate. The Company uses derivative financial instruments, which include Treasury note futures contracts and interest rate swaps, to limit the Company’s exposure to interest rate fluctuations. The following table details the Company’s outstanding interest rate swaps that were non-designated hedges of interest rate risk (notional amount in thousands):
The following table details the fair value of the Company’s derivative financial instruments ($ in thousands):
(1) The derivative liability balances as of December 31, 2025 and 2024 are included in accounts payable, accrued expenses and other liabilities. For the years ended December 31, 2025, 2024 and 2023, the Company recorded an unrealized gain related to changes in the fair value of its derivative financial instruments of $0.2 million, $0.9 million and $0.6 million, respectively. During the years ended December 31, 2025, 2024 and 2023, the Company recorded a realized gain of $0.1 million and realized losses of $0.2 million and 0.1 million, respectively. Unrealized gain (loss) and realized gain (loss) from the Company’s derivative financial instruments are recorded within other income, net on the Consolidated Statements of Operations. |
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