v3.26.1
Derivative Instruments and Hedging Activities
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.
For derivatives designated and qualifying as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest is incurred on the Company’s variable rate debt. During the next twelve months, the Company estimates that an additional $1,948,000 will be reclassified from accumulated other comprehensive income (loss) as a reduction to interest expense. As of March 31, 2026, the Company had 10 interest rate swap agreements, of which six mature on January 31, 2028 and four mature on March 20, 2029.
The following table summarizes the notional amount and fair value of the Company’s derivative instruments (amounts in thousands):
Derivatives
Designated as
Hedging
Instruments		Weighted Average Fixed Interest RateEffective
Dates		Maturity
Dates		March 31, 2026December 31, 2025
Outstanding
Notional
Amount(2)
Fair Value ofOutstanding
Notional
Amount		Fair Value of
Assets(Liabilities)Assets(Liabilities)
Interest rate swaps(1)
2.83%05/02/2022 to 05/01/202301/31/2028$275,000 $3,873 $(197)$275,000 $2,915 $(472)
Interest rate swaps(1)
3.76%12/31/202403/20/2029250,000 — (1,651)250,000 — (3,457)
$525,000 $3,873 $(1,848)$525,000 $2,915 $(3,929)
(1)     Derivative assets and liabilities are reported in the condensed consolidated balance sheets as other assets and accounts payable and other liabilities, respectively.
(2)    The notional amount under the agreements is an indication of the extent of the Company’s involvement in each instrument at the time, but does not represent exposure to credit, interest rate or market risks.
The table below summarizes the amount of income and (loss) recognized on the interest rate derivatives designated as cash flow hedges for the three months ended March 31, 2026 and 2025 (amounts in thousands):
Derivatives in Cash Flow
Hedging Relationships
Amount of Income (Loss) Recognized
in Other Comprehensive Income (Loss) on Derivatives
Location of Income Reclassified From
Accumulated Other
Comprehensive Income (Loss) to
Net Income
Amount of Income
Reclassified From
Accumulated Other
Comprehensive Income to
Net Income
Total Amount of Line Item in Condensed Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2026
Interest rate swaps$3,568 Interest expense$529 $(9,044)
Three Months Ended March 31, 2025
Interest rate swaps$(5,745)Interest expense$1,393 $(7,325)
Credit Risk-Related Contingent Features
The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. As of March 31, 2026, the fair value of derivatives related to counterparties that were in a net liability position was $1,287,000, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of December 31, 2025, the fair value of derivatives related to counterparties that were in a net liability position was $3,499,000, inclusive of accrued interest but excluding any adjustment for nonperformance risk related to the agreement. As of both March 31, 2026 and December 31, 2025, there were no termination events or events of default related to the interest rate swaps.
Tabular Disclosure Offsetting Derivatives
The Company has elected not to offset derivative positions in its condensed consolidated financial statements. The following tables present the effect on the Company’s financial position had the Company made the election to offset its derivative positions as of March 31, 2026 and December 31, 2025 (amounts in thousands):
Offsetting of Derivative Assets    
    Gross Amounts Not Offset in the Balance Sheet 
 Gross
Amounts of
Recognized
Assets		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Assets Presented in
the Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
March 31, 2026$3,873 $— $3,873 $(616)$— $3,257 
December 31, 2025$2,915 $— $2,915 $(447)$— $2,468 
Offsetting of Derivative Liabilities
Gross Amounts Not Offset in the Balance Sheet
Gross
Amounts of
Recognized
Liabilities		Gross Amounts
Offset in the
Balance Sheet		Net Amounts of
Liabilities
Presented in the
Balance Sheet		Financial Instruments
Collateral		Cash CollateralNet
Amount
March 31, 2026$1,848 $— $1,848 $(616)$— $1,232 
December 31, 2025$3,929 $— $3,929 $(447)$— $3,482