v3.26.1
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 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
We record all derivatives at fair value. Our objective in utilizing interest rate derivatives is to add stability to our interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate
swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.
The changes in the fair value of designated derivatives that qualify as a cash flow hedge are recorded in Accumulated other comprehensive income/(loss) on the Consolidated Balance Sheets and subsequently reclassified into earnings in the Consolidated Statements of Income and Comprehensive Income in the period that the hedged forecasted transaction affects earnings and are presented in the same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap settlements are made. Proceeds or payments from premiums and periodic settlements of derivative instruments are classified in the same section of the Consolidated Statements of Cash Flows as the underlying hedged item.
The following table presents the terms of our derivative financial instruments (notional amounts in thousands):
As of June 30, 2026
Interest Rate DerivativesNumber of InstrumentsNotional AmountWeighted Average Interest RateIndexWeighted Average Remaining Term (Years)
Interest rate swaps7$440,0004.81%SOFR2.4
As of December 31, 2025
Interest Rate DerivativesNumber of InstrumentsNotional AmountWeighted Average Interest RateIndexWeighted Average Remaining Term (Years)
Interest rate swaps7$440,0004.81%SOFR2.9
Our derivative financial instruments are classified as Level 2 in the fair value hierarchy. The following table presents the fair value of our derivative financial instruments:
As of June 30,As of December 31,
(amounts in thousands)Balance Sheet Location20262025
Interest rate swapsOther assets, net$2,900 $— 
Interest rate swapsAccounts payable and other liabilities$— $2,208 
The following table presents the amount of (gain)/loss recognized in Other comprehensive income/(loss) on derivatives in the Consolidated Statements of Income and Comprehensive Income (in thousands):
Derivatives in Cash Flow Hedging Relationship
For the Quarters Ended June 30,
For the Six Months Ended June 30,
2026202520262025
Interest rate swaps$(3,032)$1,874 $(5,306)$2,782 
The following table presents the amount of (gain)/loss reclassified from Accumulated other comprehensive income/(loss) into income in the Consolidated Statements of Income and Comprehensive Income (in thousands):
Derivatives in Cash Flow Hedging RelationshipLocation of (gain)/ loss reclassified from
Accumulated OCI into income
For the Quarters Ended June 30,
For the Six Months Ended June 30,
2026202520262025
Interest rate swapsInterest Expense$(76)$(810)$(198)$(1,531)
During the next twelve months, we estimate that $1.2 million will be reclassified from Accumulated other comprehensive income/(loss) as a decrease to interest expense. This estimate may be subject to change as the underlying SOFR changes. As of June 30, 2026, we had not posted any collateral related to the interest rate swaps.