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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING
 
Information about our derivative financial instruments at September 30, 2025 and December 31, 2024 is as follows (dollars in thousands): 
Notional AmountFair Value
Contract DateEffective DateExpiration DateAverage Annual Effective Fixed RateSeptember 30, 2025December 31, 2024September 30, 2025December 31, 2024
Operating Partnership:
June 11, 2018December 31, 2018December 31, 20252.92 %$125,000 $125,000 $361 $1,582 
July 26, 2022January 31, 2023January 31, 20272.60 %100,000 100,000 1,135 2,824 
July 26, 2022January 31, 2023January 31, 20292.56 %100,000 100,000 2,312 5,325 
June 5, 2025June 2, 2025May 15, 20283.57 %58,000 — (396)— 
Total Operating Partnership383,000 325,000 3,412 9,731 
GIC Joint Venture:
March 24, 2023July 1, 2023January 13, 20263.35 %100,000 100,000 166 754 
March 24, 2023July 1, 2023January 13, 20263.35 %100,000 100,000 166 754 
January 19, 2024October 1, 2024January 13, 20263.77 %100,000 100,000 48 334 
August 25, 2025January 13, 2026January 13, 20283.26 %150,000 — (99)— 
August 25, 2025January 13, 2026January 13, 20283.27 %150,000 — (112)— 
Total GIC Joint Venture
600,000 300,000 169 1,842 
Total
3.17 %(1)$983,000 $625,000 $3,581 $11,573 
 (1)    Represents the weighted-average effective interest rate of our current interest rate swaps at September 30, 2025.

At September 30, 2025, debt related to our wholly-owned properties and our pro rata share of joint venture debt has a fixed-rate debt ratio of approximately 75% of our total pro rata indebtedness when taking into consideration interest rate swaps that are currently in effect.
At September 30, 2025 and December 31, 2024, we had $683 million and $625 million, respectively, of debt with variable interest rates that had been converted to fixed interest rates through derivative financial instruments which are carried at fair value. Differences between carrying value and fair value of our fixed-rate debt are primarily due to changes in interest rates. Inherently, fixed-rate debt is subject to fluctuations in fair value as a result of changes in the current market rate of interest on the valuation date.

In June 2025, the Operating Partnership entered into a $58 million interest rate swap related to the Brickell Mortgage Loan to fix one-month term SOFR until May 2028. The interest rate swap has an effective date of June 2, 2025 and an expiration date of May 15, 2028.

In August 2025, the Term Loan Borrowers under the 2025 GIC Joint Venture Term Loan entered into two $150 million forward-starting interest rate swaps to fix one-month term SOFR until January 2028 to replace interest swaps with a combined notional amount of $300 million that will expire in January 2026. The new interest rate swaps have an effective date of January 13, 2026 and an expiration date of January 13, 2028.

Our interest rate swaps have been designated as cash flow hedges and are valued using a market approach, which is a Level 2 valuation technique. At September 30, 2025, six of our interest rate swaps were in an asset position and three were in a liability position. At December 31, 2024, all of our interest rate swaps were in an asset position. Derivative assets related to our interest rate swaps are recorded in Other assets and derivative liabilities are recorded in Accrued expenses and other on our Condensed Consolidated Balance Sheets. We are not required to post any collateral related to these agreements and are not in breach of any financial provisions of the agreements.

Changes in the fair value of the hedging instruments are deferred in Accumulated other comprehensive income on our Condensed Consolidated Balance Sheets and are reclassified to Interest expense on our Condensed Consolidated Statements of Operations in the period in which the hedged item affects earnings. In the next 12 months, we estimate that $3.1 million will be reclassified from Accumulated other comprehensive income and recorded as a decrease to Interest expense.
 
We characterize the realized and unrealized gain or loss related to derivative financial instruments designated as cash flow hedges as follows (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2025202420252024
Unrealized gain (loss) recognized in Accumulated other comprehensive income (loss) on derivative financial instruments$213 $(9,380)$(1,880)$3,093 
Gain reclassified from Accumulated other comprehensive income to Interest expense$2,120 $3,660 $6,112 $11,000 
Total interest expense and other finance expense presented on the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
$20,676 $20,428 $61,260 $62,840