Derivatives

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

16. Derivatives

The Company uses derivative financial instruments to minimize the risks and costs associated with the Company's investments and financing transactions. The Company has not designated any of its derivative financial instruments as hedges as defined under GAAP.

Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks.

The use of derivative financial instruments involves certain risks, including the risk that counterparties do not perform as agreed. To mitigate this risk, the Company enters into derivative financial instruments with counterparties it believes to have appropriate credit ratings and that are major financial institutions with which the Company and its affiliates may also have other financial relationships.

Interest rate contracts

Certain of the Company's transactions expose the Company to interest rate risk on loans secured by the Company's real estate. The Company uses derivative financial instruments which includes interest rate swaps to limit the Company's exposure to interest rate fluctuations.

The following table details the Company’s outstanding interest rate swaps that were non-designated hedges of interest rate risk (notional amount in thousands):

	March 31, 2026
Interest rate swap	Number of Instruments		Notional Amount		Weighted-Average Strike Rate	Index	Weighted-Average Maturity (Years)		Weighted-Average Commencement Date	Weighted-Average Maturity Date
Interest rate swaps – mortgage notes		4	$	120,100	3.59%	SOFR		2.6	August 17, 2025	October 19, 2028

	December 31, 2025
Interest rate swap	Number of Instruments		Notional Amount		Weighted-Average Strike Rate	Index	Weighted-Average Maturity (Years)		Weighted-Average Commencement Date	Weighted-Average Maturity Date
Interest rate swaps – mortgage notes		4	$	120,100	3.59%	SOFR		2.8	August 17, 2025	October 19, 2028

The following table details the fair value of the Company's derivative financial instruments ($ in thousands):

	Fair Value of Derivatives(1)
	March 31, 2026			December 31, 2025
Interest rate swaps	$	(366	)	$	(354	)

(1) The derivative liability balances as of March 31, 2026 and December 31, 2025 are included in accounts payable, accrued expenses and other liabilities.