v3.26.1
Derivative Instruments and Hedging
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Derivative Instruments and Hedging
Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps and floors. To mitigate nonperformance risk, we routinely use a third party’s analysis of the creditworthiness of the counterparties, which supports our belief that the counterparties’ nonperformance risk is limited. All derivatives are recorded at fair value. Payments from counterparties on in-the-money interest rate caps and floors are recognized as realized gains on our consolidated statements of operations.
The following table presents a summary of our interest rate derivatives entered into over each applicable period:
Year Ended December 31,
202520242023
Interest rate caps:
Notional amount (in thousands)$1,642,505 
(1)
$2,341,742 
(1)
$2,583,271 
(1)
Strike rate low end of range4.00 %3.10 %2.50 %
Strike rate high end of range5.25 %7.31 %6.90 %
Effective date range
February 2025 - September 2025
February 2024 - December 2024March 2023 - December 2023
Termination date range
January 2026 - September 2027
February 2025 - November 2027
February 2024 - June 2025
Total cost (in thousands)$5,120 $15,532 $28,256 
Interest rate floors:
Notional amount (in thousands)$— $121,500 
(1)
$— 
Strike rate low end of range— %2.75 %— %
Strike rate high end of range— %2.75 %— %
Effective date rangeNovember 2024
Termination date rangeNovember 2027
Total cost (in thousands)$— $754 $— 
_______________
(1)These instruments were not designated as cash flow hedges.
We held interest rate instruments as summarized in the table below:
December 31, 2025December 31, 2024
Interest rate caps:
Notional amount (in thousands)$2,068,205 
(1)
$2,477,192 
(1)
Strike rate low end of range4.00 %3.10 %
Strike rate high end of range5.50 %7.31 %
Termination date range
January 2026 - November 2027
January 2025 - November 2027
Aggregate principal balance on corresponding mortgage loans (in thousands)$1,764,005 $2,123,951 
Interest rate floors:
Notional amount (in thousands)$121,500 
(1)
$121,500 
(1)
Strike rate low end of range2.75 %2.75 %
Strike rate high end of range2.75 %2.75 %
Termination date rangeNovember 2027November 2027
_______________
(1)These instruments were not designated as cash flow hedges.
Compound Embedded Debt Derivative—On February 12, 2025, we repaid the outstanding balance on our corporate strategic financing with Oaktree Capital Management, L.P. (the “Oaktree Credit Agreement”), which included an exit fee of $30.0 million. Prior to the repayment date, the exit fee was considered under the applicable accounting guidance as an embedded derivative liability that met the criteria for bifurcation from the debt host and was measured at estimated fair value at each reporting period. See note 10.