v3.26.1
Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
We have the following derivatives (dollars in thousands):
Fair Value of Assets (Liabilities)
Hedged DebtTypeFixed RateIndexEffective DateMaturity DateNotional AmountJune 30,
2026		December 31, 2025
Unsecured term loansSwap3.36 %SOFRMarch 1, 2023January 1, 2028$75,000 $645 $(138)
Unsecured term loansSwap3.50 %SOFRMarch 1, 2023January 1, 2027$75,000 122 (82)
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 371 (4)
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 371 (4)
Unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 95 80 
Unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 — 1 
Unsecured term loansSwap3.29 %SOFRJanuary 2, 2026January 1, 2029$75,000 1,085 (11)
Unsecured term loansSwap3.07 %SOFRJanuary 4, 2027January 1, 2029$50,000 801 155 
Unsecured term loansSwap3.83 %SOFRJune 25, 2026January 2, 2030$50,000 36 — 
Unsecured term loansSwap3.83 %SOFRJune 25, 2026January 2, 2030$50,000 32 — 
$550,000 $3,558 $(3)

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the year 2026, such derivatives were used to hedge the variable cash flows associated with variable-rate debt.

The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income2026202520262025
Gain (loss) recognized in other comprehensive incomeUnrealized gain (loss) on interest rate derivative instruments$1,855 $(1,294)$3,561 $(3,841)
Interest (income) for derivatives that were designated as cash flow hedgesInterest expense$(230)$(817)$(499)$(1,638)

During the next 12 months, we estimate that $1.9 million will be reclassified from other comprehensive income as a decrease to interest expense.