v3.26.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2026
Interest Rate Derivatives [Abstract]  
Derivative Instruments

15. Derivative Instruments

The Partnership’s derivative instruments are not designated as hedging instruments and are recorded at fair value. Changes in fair value are included in current period earnings as “Net result from derivative transactions” in the Partnership's condensed consolidated statements of operations, with gains reported as a reduction to expenses. The following tables are a summary of the realized and unrealized gains and losses of the Partnership's derivative instruments for the three months ended March 31, 2026 and 2025

 

 

For the Three Months ended March 31, 2026

 

 

 

Realized (gains) losses on derivatives, net

 

 

Unrealized (gains) losses on derivatives, net

 

 

Net result from derivative transactions

 

Interest rate swaps

 

$

(21,641

)

 

$

(1,542,998

)

 

$

(1,564,639

)

 

 

 

For the Three Months ended March 31, 2025

 

 

 

Realized (gains) losses on derivatives, net

 

 

Unrealized (gains) losses on derivatives, net

 

 

Net result from derivative transactions

 

Interest rate swaps

 

$

(847,059

)

 

$

3,883,196

 

 

$

3,036,137

 

The value of the Partnership’s interest rate swaps are subject to mark-to-market collateral posting provisions in conjunction with the Partnership’s respective ISDA master agreements with Mizuho and Barclays. See Note 20 for a description of the methodology and significant assumptions for determining the fair value of the derivatives. The derivative instruments are presented within “Other assets” and “Accounts payable, accrued expenses and other liabilities” in the Partnership's condensed consolidated balance sheets.

Interest Rate Swap Agreements

The Partnership has entered into multiple interest rate swap agreements to mitigate interest rate risk associated with variable rate TOB trust financings and a mortgage payable. No fees were paid to the counterparties upon closing of the interest rate swaps.

The following tables summarize the Partnership’s interest rate derivative agreements as of March 31, 2026 and December 31, 2025:

 

 

 

 

 

Fair Value as of
March 31, 2026

 

 

 

 

Contract Type

 

Notional Amount

 

 

Asset

 

 

Liability

 

 

Weighted Average
Remaining Maturity (Years)

 

Swaps

 

 

 

 

 

 

 

 

 

 

 

 

SOFR

 

 

340,261,799

 

 

$

2,050,163

 

 

$

(1,049,859

)

 

 

2.15

 

 

 

 

 

 

 

Fair Value as of
December 31, 2025

 

 

 

 

Contract Type

 

Notional Amount

 

 

Asset

 

 

Liability

 

 

Weighted Average
Remaining Maturity (Years)

 

Swaps

 

 

 

 

 

 

 

 

 

 

 

 

SOFR

 

 

294,473,799

 

 

$

1,338,175

 

 

$

(1,843,464

)

 

 

2.78

 

 

The following table summarizes the average notional amount and weighted average fixed rate by year for our interest rate swaps as of March 31, 2026:

Year

 

Average Notional

 

 

Weighted Average
Fixed Rate Paid

 

Remainder of 2026

 

$

345,805,132

 

 

 

3.40

%

2027

 

 

261,443,332

 

 

 

3.47

%

2028

 

 

119,755,466

 

 

 

3.61

%

2029

 

 

83,152,299

 

 

 

3.53

%

2030

 

 

28,852,800

 

 

 

3.82

%

2031

 

 

21,205,500

 

 

 

3.86

%

2032

 

 

18,931,333

 

 

 

3.83

%

2033

 

 

15,863,500

 

 

 

3.90

%

2034

 

 

11,755,833

 

 

 

3.94

%

2035

 

 

9,145,833

 

 

 

3.95

%

2036

 

 

9,066,667

 

 

 

3.95

%

2037

 

 

8,983,333

 

 

 

3.95

%

2038

 

 

8,893,333

 

 

 

3.95

%

2039

 

 

8,833,333

 

 

 

3.95

%