Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we use interest rate swaps as part of our interest rate risk management strategy. The effective portion of the change in the fair value of the derivative that qualifies as a cash flow hedge is recorded in accumulated other comprehensive income (loss) (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt.

The following table summarizes the terms of our derivative financial instruments as of September 30, 2022:


	Notional Amount	Strike	Effective Date	Maturity Date
Interest Rate Derivative:
CDOR Swap (1)	$16,500,000	4.02%	September 27, 2022	September 20, 2025

The following table presents a gross presentation of the fair value of our derivative financial instruments as well as their classification on our consolidated balance sheets as of September 30, 2022:


	Asset/Liability Derivatives Fair Value
	September 30, 2022	December 31, 2021
Interest Rate Swap
Accounts payable and accrued liabilities	$19,085	$—