v3.26.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Derivative Liabilities Measured at Fair Value
The following table includes a summary of the compound embedded derivative liabilities measured at fair value using significant unobservable (Level 3) inputs (in thousands):
Fair Value
Balance at December 31, 2022
$23,687 
Re-measurement of fair value9 
Balance at December 31, 202323,696 
Re-measurement of fair value5,403 
Balance at December 31, 202429,099 
Re-measurement of fair value901 
Payment of derivative liability(30,000)
Balance at December 31, 2025
$— 
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
Quoted Market Prices (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total
December 31, 2025:
Assets
Derivative assets:
Interest rate derivatives – floors$— $177 $— $177 
Interest rate derivatives – caps
— 233 — 233 
Total$— $410 $— $410 
(1)
December 31, 2024:
Assets
Derivative assets:
Interest rate derivatives – floors
$— $434 $— $434 
Interest rate derivatives – caps
— 2,160 — 2,160 
Total$— $2,594 $— $2,594 
(1)
Liabilities
Embedded debt derivative$— $— $(29,099)$(29,099)
(2)
Net$— $2,594 $(29,099)$(26,505)
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(1)    Reported as “derivative assets” in our consolidated balance sheets.
(2)    Reported in “indebtedness, net” in our consolidated balance sheets.
Schedule of Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations
The following table summarizes the effect of fair value measured assets and liabilities on our consolidated statements of operations (in thousands):
Gain (Loss) Recognized in Income
Year Ended December 31,
202520242023
Assets
Derivative assets:
Interest rate derivatives - floors$(257)$(320)$— 
Interest rate derivatives - caps(4,188)(757)(2,191)
(4,445)(1,077)(2,191)
Liabilities
Derivative liabilities:
Embedded debt derivative(901)(5,403)(9)
Net$(5,346)$(6,480)$(2,200)
Total combined
Interest rate derivatives - floors$(257)$(320)$— 
Interest rate derivatives - caps(5,363)(27,067)(44,032)
Embedded debt derivative(901)(5,403)(9)
Unrealized gain (loss) on derivatives(6,521)
(1)
(32,790)
(1)
(44,041)
(1)
Realized gain (loss) on interest rate caps1,175 
(1) (2)
26,310 
(1) (2)
41,841 
(1) (2)
Net$(5,346)$(6,480)$(2,200)
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(1)    Reported in “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.
(2)    Represents settled and unsettled payments from counterparties on interest rate caps.