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DERIVATIVES AND HEDGING
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING
The Company estimates the fair value of derivative instruments, including its interest rate caps, swaps and foreign currency forwards, using the assistance of a third party using inputs that are observable in the market, which include forward yield curves and other relevant information.
In connection with the Acquisition, the Company assumed Care REIT’s two outstanding interest rate caps with an aggregate £100.0 million in notional value to mitigate the interest rate risk of the variable rate secured revolving credit facilities. The interest rate derivatives were not designated as a hedge in qualifying hedging relationships. In July 2025, the Company paid off its variable rate secured revolving credit facilities and terminated the interest rate cap instruments associated with them. See Note 9, Debt, for additional information. The Company recorded a $0.2 million net gain in interest expense related to the interest rate caps during the year ended December 31, 2025.
In June 2025, the Company entered into four foreign currency forward contracts with £31.0 million in notional value issued at a weighted average GBP-USD exchange rate of 1.34 that are designated as cash flow hedges. The Company entered into cash flow hedges to hedge the foreign currency risk of intercompany loans denominated in GBP.
On July 10, 2025, the Company entered into two interest rate swaps, with a notional amount of $250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility (as defined below). The interest rate swaps convert the Term Loan Facility’s Term SOFR rate to an effective fixed interest rate of 3.5%. The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. 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 term of the agreements without exchange of the underlying notional amount.
The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2025:
Derivative 
Notional Amount (in thousands)
 Maturity or Settlement Date Index Strike Rate 
Fair Value as of December 31, 2025 (in thousands)
Cash flow hedge£7,656 March 2026GBP-USD exchange rate$1.34 (67)
Cash flow hedge£7,741 June 2026GBP-USD exchange rate$1.34 (67)
Interest rate swap$250,000 June 2028USD-SOFR3.5 %(1,543)
Interest rate swap$250,000 June 2028USD-SOFR3.5 %(1,543)
The table below presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss) for the year ended December 31, 2025 (dollars in thousands):
 Gain (loss) recognized in Other Comprehensive Income (Loss) Gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss) into Income Income Statement Location
For the year ended December 31, 2025
For the year ended December 31, 2025
Cash flow hedge$276 $(142)Gain/loss on foreign currency transaction
Interest rate swap1,438 1,648 Interest expense
$1,714 $1,506 
The Company estimates that an additional $0.7 million will be reclassified from accumulated other comprehensive income as a net increase to interest expense and $0.1 million will be reclassified from accumulated other comprehensive income to loss on foreign currency transactions over the next 12 months.