Fair Value Measurements and Interest Rate Derivatives (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Measurements and Interest Rate Derivatives

Schedule of principal values and estimated fair values of debt

The Company’s principal balances and fair market values of its consolidated debt as of September 30, 2024 (unaudited) and December 31, 2023 were as follows (in thousands):

	September 30, 2024				December 31, 2023
	Carrying Amount (1)		Fair Value (2)		Carrying Amount (1)		Fair Value (2)
Debt	$	817,437	$	817,252	$	819,050	$	805,212

(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.

Schedule of interest rate derivatives

The Company’s interest rate derivatives, which are not designated as effective cash flow hedges, consisted of the following at September 30, 2024 (unaudited) and December 31, 2023 (in thousands):

									Estimated Fair Value of Assets (Liabilities) (1)
		Strike / Capped			Effective	Maturity	Notional		September 30,		December 31,
Hedged Debt	Type	Rate		Index	Date	Date	Amount		2024		2023
Term Loan 1	Swap	3.675	%	CME Term SOFR	March 17, 2023	March 17, 2026	$	75,000	$	(966)	$	417
Term Loan 1	Swap	3.931	%	CME Term SOFR	September 14, 2023	September 14, 2026	$	100,000		(113)		(401)
									$	(1,079)	$	16

(1) The fair value of the swap derivative asset was included in prepaid expenses and other assets, net on the accompanying consolidated balance sheet as of December 31, 2023. The fair values of the swap derivative liabilities were included in other liabilities on the accompanying consolidated balance sheets as of September 30, 2024 and December 31, 2023.

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 increases (decreases) to interest expense for the three and nine months ended September 30, 2024 and 2023 as follows (unaudited and in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Noncash interest on derivatives, net	$	3,326	$	(1,469)	$	1,095	$	(3,348)