v3.26.1
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 
Information about our derivative financial instruments at June 30, 2026 and December 31, 2025 is as follows (dollars in thousands): 
Notional AmountFair Value
Contract DateEffective DateExpiration DateAverage Annual Effective Fixed RateJune 30, 2026December 31, 2025June 30, 2026December 31, 2025
Operating Partnership:
July 26, 2022January 31, 2023January 31, 20272.60 %$100,000 $100,000 $728 $816 
July 26, 2022January 31, 2023January 31, 20292.56 %100,000 100,000 3,305 2,161 
June 5, 2025June 2, 2025May 15, 20283.57 %58,000 58,000 384 (404)
November 17, 2025December 31, 2025December 31, 20273.31 %125,000 125,000 1,175 (109)
Total Operating Partnership383,000 383,000 5,592 2,464 
GIC Joint Venture:
March 24, 2023July 1, 2023January 13, 20263.35 %— 100,000 — 12 
March 24, 2023July 1, 2023January 13, 20263.35 %— 100,000 — 12 
January 19, 2024October 1, 2024January 13, 20263.77 %— 100,000 — (2)
August 25, 2025January 13, 2026(2)January 13, 20283.26 %150,000 150,000 1,558 (4)
August 25, 2025January 13, 2026(2)January 13, 20283.27 %150,000 150,000 1,548 (17)
Total GIC Joint Venture
300,000 600,000 3,106 1 
Total
3.10 %(1)$683,000 $983,000 $8,698 $2,465 
(1)    Represents the weighted-average effective interest rate of our current interest rate swaps at June 30, 2026.
(2)    In August 2025, the GIC Joint Venture entered into two $150 million forward starting interest rate swaps to fix one-month term SOFR to replace $300 million of existing GIC Joint Venture interest rate swaps that matured in January 2026. The forward starting interest rate swaps were outstanding at December 31, 2025 but did not become effective until January 13, 2026.


At June 30, 2026, debt related to our wholly-owned properties and our pro rata share of joint venture debt has a fixed-rate debt ratio of approximately 51% of our total pro rata indebtedness when taking into consideration interest rate swaps that are currently in effect.

At June 30, 2026 and December 31, 2025, we had interest rate swaps in effect to convert $683 million of debt with variable interest rates to fixed interest rates. The interest rate swaps are carried at fair value on our Condensed Consolidated Balance Sheets. Differences between carrying value and fair value of our fixed-rate debt are primarily due to changes in interest rates. Inherently, fixed-rate debt is subject to fluctuations in fair value as a result of changes in the current market rate of interest on the valuation date.
Our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At June 30, 2026, all of our interest rate swaps were in an asset position. At December 31, 2025, four of our interest rate swaps were in an asset position and five were in a liability position. Derivative assets related to our interest rate swaps are recorded in Other assets and derivative liabilities are recorded in Accrued expenses and other on our Condensed Consolidated Balance Sheets. We are not required to post any collateral related to these agreements and are not in breach of any financial provisions of the agreements.

Changes in the fair value of the hedging instruments are deferred in Accumulated other comprehensive income on our Condensed Consolidated Balance Sheets and are reclassified to Interest expense on our Condensed Consolidated Statements of Operations in the period in which the hedged item affects earnings. In the next 12 months, we estimate that $5.1 million will be reclassified from Accumulated other comprehensive income and recorded as a decrease to Interest expense.
 
We characterize the realized and unrealized gain or loss related to derivative financial instruments designated as cash flow hedges as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Unrealized gain (loss) recognized in Accumulated other comprehensive income (loss) on derivative financial instruments$3,943 $(395)$8,145 $(2,093)
Gain reclassified from Accumulated other comprehensive income to Interest expense$940 $2,023 $1,912 $3,992 
Total interest expense and other finance expense presented on the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
$22,068 $20,628 $42,518 $40,584