XML 31 R15.htm IDEA: XBRL DOCUMENT v3.25.4
Derivatives
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
As of December 31, 2025 and 2024, the Company had the following derivatives (in thousands):

Fair Value of Assets (Liabilities)
Hedged DebtTypeFixed RateIndexEffective DateMaturity DateNotional AmountDecember 31, 2025December 31, 2024
Unsecured term loansSwap3.36 %SOFRMarch 1, 2023January 1, 2028$75,000 $(138)$1,328 
Unsecured term loansSwap3.50 %SOFRMarch 1, 2023January 1, 2027$75,000 (82)747 
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 (4)757 
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 (4)758 
Unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 80 456 
Unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 1 628 
Unsecured term loansSwap3.29 %SOFRJanuary 2, 2026January 1, 2029$75,000 (11)— 
Unsecured term loansSwap3.07 %SOFRJanuary 4, 2027January 1, 2029$50,000 155 — 
$450,000 $(3)$4,674 

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt.
The table below details the location in the consolidated financial statements of the gains and losses recognized on derivative financial statements (in thousands):
Year Ended December 31,
Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income202520242023
Gain (loss) recognized in other comprehensive incomeUnrealized gain (loss) on interest rate derivative instruments$(4,677)$353 $(2,634)
Interest income for derivatives that were designated as cash flow hedgesInterest expense$3,066 $6,629 $7,688 
Interest income (expense) for derivatives that were not designated as cash flow hedgesInterest expense$— $— $(469)

During the next twelve months, the Company estimates that $0.2 million will be reclassified from other comprehensive income as an increase to interest expense.