v3.26.1
Derivative Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
We have entered into various interest rate swap agreements, which are used to hedge the variable cash flows associated with variable-rate interest payments. We do not enter into derivative transactions for speculative or trading purposes. Each of our swap agreements meets the criteria for hedge accounting and has been designated for hedge accounting purposes. Changes in the fair value of these swaps are recorded in other comprehensive income and are subsequently reclassified into earnings in the period in which the hedged forecasted transactions affect earnings.
The table below summarizes our interest rate swap instruments as of June 30, 2026:
Agreement Date
Forward
Effective Date
Maturity
Date		Strike
Rate		IndexNotional
Amount
September 20, 2024December 31, 2024May 31, 20283.13%One month Term SOFR$200,000 
September 20, 2024December 31, 2024May 31, 20283.14%One month Term SOFR200,000 
September 23, 2024December 31, 2024May 31, 20283.13%One month Term SOFR200,000 
September 24, 2024December 31, 2024May 31, 20283.08%One month Term SOFR200,000 
September 24, 2024December 31, 2024May 31, 20283.08%One month Term SOFR200,000 
September 25, 2024December 31, 2024May 31, 20281.93%One month Term SOFR200,000 
September 25, 2024December 31, 2024May 31, 20293.12%One month Term SOFR200,000 
May 8, 2025May 8, 2025May 31, 20283.51%One month Term SOFR200,000 
June 20, 2025June 20, 2025May 31, 20283.60%One month Term SOFR200,000 
March 22, 2023July 9, 2025May 31, 20292.99%One month Term SOFR300,000 
During the six months ended June 30, 2026 and 2025, interest rate swap instruments were used to hedge the variable cash flows associated with existing variable-rate interest payments. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next 12 months, we estimate that $15,903 will be reclassified to earnings as a decrease in interest expense.
Fair Values of Derivative Instruments on the Condensed Consolidated Balance Sheets
The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025:
Asset DerivativesLiability Derivatives
Fair Value as ofFair Value as of
Balance
Sheet Location		June 30,
2026		December 31, 2025Balance
Sheet Location		June 30,
2026		December 31, 2025
Derivatives designated as hedging instruments:
Interest rate swapsOther assets$37,276 $14,354 Other liabilities$— $2,616 
Derivatives not designated as hedging instruments:
Interest rate capsOther assets— — Other liabilities— — 
Total$37,276 $14,354 $— $2,616 
Offsetting Derivatives
We enter into master netting arrangements, which reduce risk by permitting net settlement of transactions with the same counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of June 30, 2026 and December 31, 2025:
June 30, 2026
Gross Amounts Not Offset in the Statement of Financial Position
Gross Amounts of Recognized Assets/ LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets/ Liabilities Presented in the Statement of Financial PositionFinancial InstrumentsCash Collateral ReceivedNet
Amount
Offsetting assets:
Derivatives$37,276 $— $37,276 $— $— $37,276 
Offsetting liabilities:
Derivatives$— $— $— $— $— $— 

December 31, 2025
Gross Amounts Not Offset in the Statement of Financial Position
Gross Amounts of Recognized Assets/ LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets/ Liabilities Presented in the Statement of Financial PositionFinancial InstrumentsCash Collateral ReceivedNet
Amount
Offsetting assets:
Derivatives$14,354 $— $14,354 $(1,106)$— $13,248 
Offsetting liabilities:
Derivatives$2,616 $— $2,616 $(1,106)$— $1,510 
Effect of Derivative Instruments on the Condensed Consolidated Statements of Comprehensive Income (Loss) and the Condensed Consolidated Statements of Operations
The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the three months ended June 30, 2026 and 2025:
Amount of Gain (Loss) Recognized in OCI on DerivativesLocation of Gain (Loss) Reclassified from Accumulated OCI into Net IncomeAmount of Gain Reclassified from Accumulated OCI into Net Income
Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations
For the Three Months
Ended June 30,		For the Three Months
Ended June 30,		For the Three Months
Ended June 30,
202620252026202520262025
    Derivatives in cash flow hedging relationships:
Interest rate swaps$17,054 $(10,768)Interest expense$2,510 $9,057 $93,987 $87,414 
During the three months ended June 30, 2026 and 2025, we did not recognize any gains or losses related to derivative instruments, as there were no undesignated instruments outstanding during those periods.
The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of comprehensive income (loss) and the condensed consolidated statements of operations for the six months ended June 30, 2026 and 2025:
Amount of Gain (Loss) Recognized in OCI on DerivativesLocation of Gain (Loss) Reclassified from Accumulated OCI into Net IncomeAmount of Gain Reclassified from Accumulated OCI into Net Income
Total Amount of Interest Expense Presented in the Condensed Consolidated Statements of Operations
For the Six Months Ended June 30,For the Six Months Ended June 30,For the Six Months Ended June 30,
202620252026202520262025
    Derivatives in cash flow hedging relationships:
Interest rate swaps$31,824 $(29,726)Interest expense$5,199 $19,844 $189,300 $171,668 
During the six months ended June 30, 2026 and 2025, we did not recognize any gains or losses related to derivative instruments, as there were no undesignated instruments outstanding during those periods.
Credit-Risk-Related Contingent Features
The agreements with our derivative counterparties which govern our interest rate swap agreements contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.
As of June 30, 2026, we were not in a net liability position with any of our derivative counterparties.