| Schedule of principal balances and fair market values of debt |
The Company’s principal balances and fair market values of its consolidated debt as of June 30, 2026 (unaudited) and December 31, 2025 were as follows (in thousands): | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Carrying Amount (1) | | Fair Value (2) | | Carrying Amount (1) | | Fair Value (2) | Debt | $ | 980,000 | | $ | 977,541 | | $ | 930,000 | | $ | 929,162 | | | | | | | | | | | | |
| (1) | The principal balance of debt is presented before any unamortized deferred financing costs. |
| (2) | Due to changes in market conditions and the economic environment, actual interest rates could vary materially from those estimated, which would result in variances in the Company’s calculations of the fair market value of its debt. |
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| Schedule of interest rate derivatives |
The Company’s interest rate swap derivatives, which are not designated as effective cash flow hedges, consisted of the following at June 30, 2026 (unaudited) and December 31, 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | Estimated Fair Value of Assets (Liabilities) (1) | | | Effective | Maturity | | Notional | | June 30, | | December 31, | Hedged Debt | Fixed Rate | Date | Date | | Amount | | 2026 | | 2025 | Term Loan 2 | 3.675 | % | March 17, 2023 | March 17, 2026 | | $ | N/A | | $ | N/A | | $ | — | Term Loan 2 | 3.931 | % | September 14, 2023 | September 14, 2026 | | $ | 100,000 | | | (46) | | | (311) | Term Loan 2 | 4.020 | % | January 31, 2025 | November 7, 2026 | | $ | 100,000 | | | (87) | | | (491) | Term Loan 1 | 3.226 | % | September 9, 2025 | September 9, 2028 | | $ | 210,000 | | | 3,154 | | | 395 | Term Loan 1 | 3.206 | % | January 10, 2026 | January 10, 2028 | | $ | 65,000 | | | 742 | | | 85 | | | | | | | | | | $ | 3,763 | | $ | (322) |
| (1) | All of the Company’s swap agreements are indexed to CME Term SOFR. The fair values of the swap derivative assets were included in prepaid expenses and other assets, net on the accompanying consolidated balance sheets as of June 30, 2026 and December 31, 2025. The fair values of the swap derivative liabilities were included in other liabilities on the accompanying consolidated balance sheets as of June 30, 2026 and December 31, 2025. |
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| Schedule of changes in fair value of interest rate derivatives |
Noncash changes in the fair values of the Company’s interest rate derivatives resulted in (decreases) increases to interest expense for the three and six months ended June 30, 2026 and 2025 as follows (unaudited and in thousands): | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Noncash interest on derivatives, net | | $ | (1,964) | | $ | 181 | | $ | (4,085) | | $ | 1,163 |
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