Note 18 - Derivatives |
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| Derivative Instruments and Hedging Activities Disclosure [Text Block] |
18. Derivatives:
(a) Interest rate swaps and interest rate caps that meet the criteria for hedge accounting: The Company manages its exposure to floating interest rates and foreign currencies by entering into interest rate swaps and interest rate caps agreements with varying start and maturity dates.
The interest rate swaps are designed to hedge the variability of interest cash flows arising from floating rate debt, attributable to movements in three-month SOFR. According to the Company’s Risk Management Accounting Policy, after putting in place the formal documentation at the inception of the hedging relationship, as required by ASC 815, these interest rate derivatives instruments qualified for hedge accounting. The change in the fair value of the interest rate derivative instruments that qualified for hedge accounting is recorded in “Accumulated Other Comprehensive Income” and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in Interest and finance costs. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain / (Loss) on derivative instruments, net.
During the six-month period ended June 30, 2026, pursuant to the prepayment of the loan discussed in Note 10.A.2, the Company terminated one interest rate swap agreement and recorded a gain of $983 which is included in Gain / (loss) on derivative instruments, net in the accompanying 2026 consolidated statement of income. During the year ended December 31, 2025, pursuant to the prepayment of the loan discussed in Note 10.A.20, one NML subsidiary terminated interest rate swap agreement.
As of December 31, 2025 and June 30, 2026, the Company had interest rate swap agreements and interest rate cap agreements with an outstanding notional amount of $631,755 and $496,407, respectively. The fair value of these derivatives outstanding as of December 31, 2025 and June 30, 2026 amounted to a net asset of $14,071 and a asset of $15,564, respectively, and these are included in the accompanying consolidated balance sheets. The maturity of these derivatives range between June 2027 and March 2031.
The estimated net amount that is expected to be reclassified within the next 12 months from Accumulated Other Comprehensive Income / (Loss) to earnings in respect of the settlements on interest rate swap and interest rate cap amounts to $6,139.
(b) Cross currency swaps that do not meet the criteria for hedge accounting: On November 21, 2025, cross-currency swaps matured. As of December 31, 2025 and June 30, 2026, there are no outstanding cross currency swaps that do not meet the criteria for hedging accounting.
(c) Foreign currency agreements, FX option zero cost collar and Foreign currency options: As of June 30, 2026, the Company holds Euro/U.S. dollar forward agreements totaling $7,049 at an average forward rate of Euro/U.S. dollar 1.1749, expiring in monthly intervals up to December 2026. Furthermore, the Company holds six Euro/U.S. dollar foreign currency options totaling $10,575 at an average call rate of Euro/U.S. dollar 1.1750, expiring in monthly intervals up to December 2026.
As of December 31, 2025, the Company held Euro/U.S. dollar forward agreements totaling $14,099 at an average forward rate of Euro/U.S. dollar 1.1749, expiring in monthly intervals up to December 2026. Furthermore, the Company entered into 12 Euro/U.S. dollar foreign currency options totaling $21,150 at an average call rate of Euro/U.S. dollar 1.1750, expiring in monthly intervals up to December 2026.
The total change of forward contracts and foreign currency options fair value for the six-month period ended June 30, 2026, was an aggregate loss of $657 (a gain of $3,060 for the six-month period ended June 30, 2025) and is included in Gain / (loss) on derivative instruments, net in the accompanying consolidated statements of income. The fair value of the forward contracts as at December 31, 2025 and June 30, 2026, amounted to an asset of $110 and a liability of $185, respectively. The fair value of the foreign currency options as at December 31, 2025 and June 30, 2026, was an asset of $393 and an asset of $31, respectively.
During the six-month period ended June 30, 2025, the Company entered into an FX option zero cost collar agreement to manage its exposure to fluctuations of foreign currencies risks. The total change of the FX option zero cost collar contract fair value for the six-month period ended June 30, 2025, was a loss of $2,994 and is included in Gain / (loss) on derivative instruments, net in the accompanying 2025 consolidated statement of income. On November 21, 2025, the agreement matured.
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