v3.26.1
Hedge Agreements
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Hedge Agreements HEDGE AGREEMENTS
We have fixed-to-fixed cross-currency swap agreements designated as net investment hedges to mitigate the impact of
fluctuations in the USD–CAD exchange rate on our real estate investments in Canada. Under the terms of the swap agreements, USD
fixed interest amounts are payable to us and CAD fixed interest amounts are payable to the counterparty.
On April 30, 2026, our cross-currency swap agreements with an aggregate notional amount of CAD $340.0 million matured.
The maturity of the swap agreements did not result in the reclassification of amounts previously recognized in accumulated other
comprehensive income to earnings because the related net investment had not been sold or substantially liquidated as of June 30,
2026.
During the three months ended June 30, 2026, we entered into new fixed-to-fixed cross-currency swap agreements
designated as net investment hedges, which were deemed effective on the commencement date and remained highly effective as of
June 30, 2026. As of June 30, 2026, the aggregate notional amount of our outstanding cross-currency swap agreements was CAD
$270.0 million, and the corresponding total USD notional amount was approximately $197.3 million. The new swap agreements mature
on January 29, 2027.
As of June 30, 2026, all of our assets in Canada were designated as held for sale. Unrealized gains or losses related to our
cross-currency swap agreements will be reclassified from accumulated other comprehensive income into net income upon the sale or
substantial liquidation of our real estate investments in Canada. Refer to “Hedge accounting” in Note 2 – “Summary of significant
accounting policies” to our unaudited consolidated financial statements for additional information.
The tables below summarize the fair value of our cross-currency swap agreements designated as net investment hedges and
the effect on our consolidated financial statements. Comparative information for the impact on the three and six months ended June 30,
2025 is not presented as there were no outstanding cross-currency swap agreements during those periods. Amounts are presented in
USD (in thousands).
Fair value of cross-currency swap agreements designated as net investment hedges
Balance Sheet Location
June 30, 2026
December 31, 2025
Other assets
$6,455
$—
Accounts payable, accrued expenses, and other liabilities
$—
$928
Effect on consolidated other comprehensive income
Location in Consolidated Statement of
Comprehensive Income
June 30, 2026
Three Months Ended
Six Months Ended
Total unrealized gains recognized in
other comprehensive income
Unrealized gains on foreign currency
translation, net
$4,730
$8,066
Effect on consolidated statements of operations
Location in Consolidated
Statement of Operations
June 30, 2026
Three Months Ended
Six Months Ended
Total gain recognized in net income(1)
Other income
$869
$3,648
(1)Represents net interest settlements and interest rate forward points excluded from assessment of hedge effectiveness. Refer to “Hedge accounting” in Note 2 –
“Summary of significant accounting policies” to our unaudited consolidated financial statements for additional information.