Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

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


March 31, 2026:
Assets
Derivative assets:
Interest rate derivatives – floors	$	—	$	210	$	—	$	210
Interest rate derivatives – caps	—		1,002		—		1,002


Total	$	—	$	1,212	$	—	$	1,212	(1)









December 31, 2025:
Assets
Derivative assets:
Interest rate derivatives – floors	$	—	$	177	$	—	$	177
Interest rate derivatives – caps	—		233		—		233





Total	$	—	$	410	$	—	$	410	(1)

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(1) Reported as “derivative assets” 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
	Three Months Ended March 31,
	2026			2025
Assets
Derivative assets:
Interest rate derivatives – floors	$	33		$	184
Interest rate derivatives – caps	724			(2,023)





Total	$	757		$	(1,839)

Liabilities
Derivative liabilities:

Embedded debt derivative	$	—		$	(901)	(1)
Net	$	757		$	(2,740)

Total combined
Interest rate derivatives – floors	$	33		$	184
Interest rate derivatives – caps	724			(2,345)


Embedded debt derivative	—			(901)
Unrealized gain (loss) on derivatives	757		(2)	(3,062)		(2)
Realized gain (loss) on interest rate caps	—		(2) (3)	322		(2) (3)




Net	$	757		$	(2,740)

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(1) Relates to the change in the fair value of an exit fee on a term loan which was repaid on February 12, 2025. Prior to the repayment date, the exit fee was considered under the applicable accounting guidance as an embedded derivative liability that met the criteria for bifurcation from the debt host and was measured at estimated fair value at each reporting period.

(2) Reported as “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.

(3) Represents settled and unsettled payments from counterparties on interest rate caps.