v3.26.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our investments, borrowings, and the use of derivative financial instruments. Specifically, we use derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings.
The following table summarizes changes to the notional amount of our derivative instruments in for the three months ended March 31, 2026:
in thousandsNotional Amount as of December 31, 2025AdditionsTermination or ExpirationNotional Amount as of March 31, 2026
Interest rate swaps$195,400 $— $— $195,400 
Total$195,400 $— $— $195,400 
The following tables summarize the notional amount and other information related to our interest rate swaps as of March 31, 2026 and December 31, 2025:
March 31, 2026
in thousandsNumber of Instruments
Notional Amount(1)
Fair ValueWeighted Average Strike Rate/Fixed RateWeighted Average Remaining Term In Years
Assets(2)
Interest rate swap1$52,000 $510 2.73%1.08
Total assets1$52,000 $510 
Liabilities(3)
Interest rate swaps2$142,900 $159 3.86%0.56
Total liabilities2$142,900 $159 
December 31, 2025
in thousandsNumber of Instruments
Notional Amount(1)
Fair ValueWeighted Average Strike Rate/Fixed RateWeighted Average Remaining Term In Years
Assets(2)
Interest rate swap1$52,500 $405 2.73%1.32
Total assets1$52,500 $405 
Liabilities(3)
Interest rate swaps2$142,900 $524 3.86%0.80
Total liabilities2$142,900 $524 
(1)The notional amount represents the amount of the mortgage note borrowings that we are hedging. It does not represent our exposure to credit, interest rate or market risks.
(2)Derivative assets are included as a component of other assets on our condensed consolidated balance sheets.
(3)Derivative liabilities are included as a component of accounts payable, accrued expenses and other liabilities on our condensed consolidated balance sheets.
The following tables summarize the effect of interest rate caps and interest rate swaps reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
in thousandsRealized gain (loss) on derivative instruments, net Contractual net interest income (expense)Unrealized gain (loss), netGain (loss) on derivative instruments, net
Interest rate swaps$— $91 $468 $559 
Total$— $91 $468 $559 

Three Months Ended March 31, 2025
in thousandsRealized gain (loss) on derivative instruments, net Contractual net interest income (expense)Unrealized gain (loss), netGain (loss) on derivative instruments, net
Interest rate caps$— $17 $(272)$(255)
Interest rate swap— 220 (510)(290)
Total$— $237 $(782)$(545)