v3.26.3
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative instruments to mitigate the effects of interest rate fluctuations on specific forecasted transactions as well as recognized financial obligations or assets. Utilizing derivative instruments allows the Company to manage the risk of fluctuations in interest rates and their related potential impact on future earnings and cash flows. The Company does not use derivative instruments for speculative or trading purposes. At September 30, 2026, a one percentage point increase or decrease in the underlying interest rate curve would result in a corresponding increase or decrease in the fair value of the derivative instruments by up to $25 million.
The following table summarizes the Company’s interest rate swap instruments (in thousands):
Fair Value(2)
Date Entered(1)
Maturity DateHedge DesignationNotional AmountPay RateReceive RateSeptember 30,
2026		December 31,
2025
Interest rate swap assets:
April 2022May 2026Cash flow$51,100 4.99 %
USD-SOFR w/ -5 Day Lookback + 2.50%
$— $193 
April 2022May 2026Cash flow91,000 4.54 %
USD-SOFR w/ -5 Day Lookback + 2.05%
— 344 
August 2022February 2027Cash flow250,000 2.60 %1 mo. USD-SOFR CME Term1,426 2,109 
August 2022August 2027Cash flow250,000 2.54 %1 mo. USD-SOFR CME Term4,000 2,980 
May 2023(3)
May 2028Cash flow400,000 3.59 %USD-SOFR w/ -5 Day Lookback6,265 — 
January 2024(4)
February 2029Cash flow750,000 3.59 %USD-SOFR w/ -5 Day Lookback18,217 — 
      Total interest rate swap assets
$29,908 $5,626 
Interest rate swap liabilities:
May 2023(3)
May 2028Cash flow$400,000 3.59 %USD-SOFR w/ -5 Day Lookback$— $(3,021)
January 2024(4)
February 2029Cash flow750,000 3.59 %USD-SOFR w/ -5 Day Lookback— (6,614)
      Total interest rate swap liabilities$— $(9,635)
_____________________________
(1)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.
(2)Derivative assets are recorded at fair value in other assets and derivative liabilities are recorded at fair value in accounts payable, accrued liabilities, and other liabilities on the Consolidated Balance Sheets.
(3)Includes two interest rate swap instruments each with notional amounts of $110 million and one interest rate swap instrument with a notional amount of $180 million. The aggregate fair value upon acquisition of these interest rate swap instruments in March 2024 was $7 million, which was recognized within other assets on the Consolidated Balance Sheets and is being amortized into interest expense on the Consolidated Statements of Operations over the terms of the related interest rate swap instruments. During each of the three months ended September 30, 2026 and 2025, the Company recognized $0.4 million of related amortization into interest expense. During each of the nine months ended September 30, 2026 and 2025, the Company recognized $1 million of related amortization into interest expense.
(4)Includes the following: (i) two interest rate swap instruments each with a pay rate of 3.56% and $50 million notional amount; (ii) three interest rate swap instruments each with a pay rate of 3.57% and $50 million notional amount; (iii) one interest rate swap instrument with a pay rate of 3.58% and $100 million notional amount; (iv) five interest rate swap instruments each with a pay rate of 3.60% and $50 million notional amount; and (v) three interest rate swap instruments each with a pay rate of 3.61% and $50 million notional amount.