v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
 
The Company enters into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and other liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of derivatives and other in the condensed consolidated statements of comprehensive (loss) income. For derivatives that qualify as cash flow hedges, the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.
As of June 30, 2026, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
Related DebtNotional AmountIndexSwap Fixed Rate
Debt Effective Rate
Effective DateExpiration Date
Floating Rate Pool of Loans
$320,000 
(1)
1-month SOFR2.25 %3.83 %8/1/20258/1/2026
Floating Rate Pool of Loans
320,000 
(1)
1-month SOFR2.25 %3.83 %8/1/20258/1/2026
Harbor Point Parcel 3 Senior Construction Loan90,000 
(2)
1-month SOFR2.25 %4.62 %8/1/20258/1/2026
Floating Rate Pool of Loans90,000 
(2)
1-month SOFR2.25 %3.83 %8/1/20258/1/2026
Thames Street Wharf Loan
61,482 
(3)
Daily SOFR0.93 %2.33 %4/3/20239/30/2026
Floating Rate Pool of Loans
150,000 
(4)
1-month SOFR2.50 %4.08 %1/2/20251/1/2027
M&T Unsecured Term Loan
100,000 
(3)
1-month SOFR3.50 %5.05 %12/6/202212/6/2027
Senior Unsecured Term Loan
100,000 
(5)
1-month SOFR3.43 %4.98 %4/1/20241/21/2028
Total Effective Swaps
$1,231,482 
Related DebtNotional AmountIndexSwap Fixed Rate
Debt Effective Rate
Effective DateExpiration Date
Thames Street Wharf Loan
$65,103 
(3)(6)
Daily SOFR3.86 %N/A9/30/20269/30/2031
________________________________________
(1) The Company paid $5.5 million to reduce the swap fixed rate on July 28, 2025.
(2) The Company paid $1.5 million to reduce the swap fixed rate on July 28, 2025.
(3) Designated as a cash flow hedge.
(4) The Company paid $4.6 million to reduce the swap fixed rate on January 3, 2025.
(5) The Company novated an existing 3.43% fixed rate swap with a $100.0 million notional and assigned (A) $11.1 million notional to the loan secured by Market at Mill Creek, effective April 17, 2024 and (B) $21.0 million to the loan secured by Liberty Retail & Apartments, effective February 1, 2024. Once the Market at Mill Creek loan was repaid on September 27, 2024, the $67.9 million swap on the senior unsecured loan increased to $79.0 million. Once the Liberty Retail & Apartments loan was repaid on May 20, 2026, the $79.0 million swap on the senior unsecured loan increased to $100.0 million.
(6) The Company entered into a swap on May 28, 2026 with an effective date of September 30, 2026. This swap will replace the existing swap assigned to the loan secured by Thames Street Wharf at the effective date of the loan's extension.

For the interest rate swaps and caps designated as cash flow hedges, realized gains and losses are reclassified out of accumulated other comprehensive income to interest expense in the condensed consolidated statements of comprehensive (loss) income due to payments received from and paid to the counterparty. During the next 12 months, the Company anticipates recognizing approximately $0.8 million of net hedging gains as reductions to interest expense. These amounts will be reclassified from accumulated other comprehensive income into earnings to offset the variability of the hedged items during this period.

The Company’s derivatives were comprised of the following as of June 30, 2026 and December 31, 2025 (in thousands): 
June 30, 2026December 31, 2025
Notional
Amount		Fair ValueNotional
Amount		Fair Value
AssetLiabilityAssetLiability
Derivatives not designated as accounting hedges
Interest rate swaps$1,070,000 $2,902 $— $1,070,000 $7,496 $(307)
Derivatives designated as accounting hedges(1)
Interest rate swaps226,585 1,086 (91)163,007 1,161 (418)
Total derivatives$1,296,585 $3,988 $(91)$1,233,007 $8,657 $(725)
(1) Includes the $65.1 million swap entered into on May 28, 2026 in connection with the refinancing of the loan secured by Thames Street Wharf, with an effective date of September 30, 2026.
The unrealized changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2026 and 2025 were comprised of the following (in thousands): 
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Interest rate swaps$(2,223)$(4,211)$(3,236)$(10,888)
Total unrealized change in fair value of interest rate derivatives$(2,223)$(4,211)$(3,236)$(10,888)
Comprehensive (loss) gain income statement presentation:
Change in fair value of derivatives and other$(2,632)$(3,845)$(4,286)$(9,472)
Unrealized cash flow hedge gains (losses)409 (366)1,050 (1,416)
Total unrealized change in fair value of interest rate derivatives$(2,223)$(4,211)$(3,236)$(10,888)