v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements
9.
Fair Value Measurements

A three-level valuation hierarchy exists for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

•
Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
•
Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
•
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The following table summarizes the inputs to the valuations for each type of fair value measurement:

 

Fair Value Measurement Type

 

Valuation Inputs

Employee holdings (other than Common Shares) within the supplemental executive retirement plan (the “SERP”)

 

Quoted market prices for identical assets. These holdings are included in other assets and other liabilities on the consolidated balance sheets.

Redeemable Noncontrolling Interests – Operating Partnership/Redeemable Limited Partners

 

Quoted market price of Common Shares.

Mortgage notes payable and private unsecured debt (including its commercial paper and line of credit, if applicable)

 

Indicative rates provided by lenders of similar loans.

Public unsecured notes

 

Quoted market prices for each underlying issuance.

Derivatives

 

Readily observable market parameters such as forward yield curves and credit default swap data.

 

The fair values of the Company’s financial instruments (other than the items listed above and the investments disclosed below) approximate their carrying or contract value. The following table provides a summary of the carrying and fair values for the Company’s mortgage notes payable and unsecured debt (including its commercial paper and line of credit, if applicable) at June 30, 2026 and December 31, 2025, respectively (amounts in thousands):

 

 

 

June 30, 2026

 

 

December 31, 2025

 

 

 

Carrying Value

 

 

Estimated Fair
Value (Level 2)

 

 

Carrying Value

 

 

Estimated Fair
Value (Level 2)

 

Mortgage notes payable, net

 

$

1,591,821

 

 

$

1,535,522

 

 

$

1,589,904

 

 

$

1,532,421

 

Unsecured debt, net

 

 

6,669,848

 

 

 

6,355,634

 

 

 

6,585,106

 

 

 

6,333,952

 

Total debt, net

 

$

8,261,669

 

 

$

7,891,156

 

 

$

8,175,010

 

 

$

7,866,373

 

 

The following tables provide a summary of the fair value measurements for each major category of assets and liabilities measured at fair value on a recurring basis and the location within the accompanying consolidated balance sheets at June 30, 2026 and December 31, 2025, respectively (amounts in thousands):

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

Balance Sheet
Location

 

6/30/2026

 

 

Quoted Prices in
Active Markets for
Identical Assets/Liabilities
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Executive Retirement Plan

 

Other Assets

 

$

100,579

 

 

$

100,579

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Executive Retirement Plan

 

Other Liabilities

 

$

100,579

 

 

$

100,579

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership/Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Limited Partners

 

Mezzanine

 

$

189,941

 

 

$

—

 

 

$

189,941

 

 

$

—

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

Description

 

Balance Sheet
Location

 

12/31/2025

 

 

Quoted Prices in
Active Markets for
Identical Assets/Liabilities
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Executive Retirement Plan

 

Other Assets

 

$

107,365

 

 

$

107,365

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Executive Retirement Plan

 

Other Liabilities

 

$

107,365

 

 

$

107,365

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable Noncontrolling Interests –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership/Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Limited Partners

 

Mezzanine

 

$

176,289

 

 

$

—

 

 

$

176,289

 

 

$

—

 

 

The following tables provide a summary of the effect of cash flow hedges on the Company’s accompanying consolidated statements of operations and comprehensive income for the six months ended June 30, 2026 and 2025, respectively (amounts in thousands):

 

June 30, 2026
Type of Cash Flow Hedge

 

Amount of
Gain/(Loss)
Recognized in OCI
on Derivative

 

 

Location of
Gain/(Loss)
Reclassified from
Accumulated OCI
into Income

 

Amount of
Gain/(Loss)
Reclassified from
Accumulated
OCI into Income

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

Interest Rate Contracts:

 

 

 

 

 

 

 

 

Forward Starting Swaps

 

$

—

 

 

Interest expense

 

$

(573

)

Total

 

$

—

 

 

 

 

$

(573

)

 

June 30, 2025
Type of Cash Flow Hedge

 

Amount of
Gain/(Loss)
Recognized in OCI
on Derivative

 

 

Location of
Gain/(Loss)
Reclassified from
Accumulated OCI
into Income

 

Amount of
Gain/(Loss)
Reclassified from
Accumulated
OCI into Income

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

Interest Rate Contracts:

 

 

 

 

 

 

 

 

Forward Starting Swaps

 

$

(3,550

)

 

Interest expense

 

$

(951

)

Total

 

$

(3,550

)

 

 

 

$

(951

)

 

As of June 30, 2026 and December 31, 2025, there were approximately $2.7 million and $2.2 million in deferred gains, net, included in accumulated other comprehensive income (loss), respectively, related to previously settled and/or unsettled derivative instruments, of which an estimated $0.8 million may be recognized as additional interest expense during the twelve months ending June 30, 2027.

Other

The Company has invested in various equity securities without readily determinable fair values and has elected to measure them using the measurement alternative in accordance with the applicable accounting standards for equity securities. These investments are carried at cost less any impairment and adjusted to fair value if there are observable price changes for an identical or similar investment of the same issuer.

The following table summarizes the Company’s real estate technology investment securities included in other assets as of June 30, 2026 and December 31, 2025 (amounts in thousands):

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Real Estate Technology Investments

 

$

43,185

 

 

$

47,409

 

 

During the six months ended June 30, 2026, the Company sold one of these investment securities for proceeds of approximately $14.6 million and realized a gain on sale of approximately $10.1 million, which is included in interest and other income in the consolidated statements of operations.