v3.26.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Fair Value Measurements  
Fair Value Measurements

Note 7. Fair Value Measurements

The Company measures certain financial assets and liabilities at fair value on a recurring basis in accordance with ASC 820 - Fair Value Measurement. This includes the use of quoted prices in active markets, observable inputs, and unobservable inputs to determine the fair value of financial assets and liabilities. The accounting guidance for fair value measurement establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels:

Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical, unrestricted assets or liabilities in active markets.
Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly, valued using inputs other than quoted prices.
Level 3 – Prices or valuation that requires inputs that are both significant to the fair value measurement and unobservable.

The fair value of the Company’s financial instruments and non-financial assets has been estimated using available market information and accepted valuation methods. Given the inherent judgment and subjectivity involved, these estimates may differ from the values that could be realized in a sale or transaction.

Financial Assets and Liabilities Measured at Fair Value

Derivative contracts held by the Company are valued on a quarterly basis by obtaining third party valuations from the Royal Bank of Canada and are classified as level II in the fair value hierarchy. The valuation of these contracts is determined using a discounted cash flow analysis based on the terms of the contract and the forward interest rate curve adjusted for the Company’s nonperformance risk. The following table details the Company’s assets measured at fair value on a recurring basis:

December 31, 2025

December 31, 2024

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

Interest rate swap contracts

$

(51)

$

$

$

Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Company had no financial assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2025 and December 31, 2024.

Financial Assets and Liabilities not Measured at Fair Value

The carrying amounts of cash and cash equivalents, restricted cash, receivables, certain other assets, accounts payable, accrued expenses and other liabilities approximate their fair value due to their terms and/or short-term nature. Financial liabilities not measured at fair value on our consolidated balance sheets consist of notes and mortgages payable and the revolving credit facility. The following table summarizes the carrying amounts and fair value of these financial instruments as of the dates set forth below.

As of December 31, 2025

As of December 31, 2024

  ​ ​ ​

Carrying amount

  ​ ​ ​

Fair value

  ​ ​ ​

Carrying amount

  ​ ​ ​

Fair value

Mortgages payable, net

$

904,352

$

840,792

$

815,523

$

728,030

Revolving credit facility

 

27,768

 

27,768

 

88,000

 

88,000

Aggregation facility

Affiliate line of credit

Total

$

932,120

$

868,560

$

903,523

$

816,030