Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes the Company’s interest rate swap instruments (in thousands):

							Fair Value(2)
Date Entered(1)	Maturity Date	Hedge Designation	Notional Amount		Pay Rate	Receive Rate	September 30, 2024		December 31, 2023
October 2019(3)	October 2024	Cash flow	$	36,050	1.37 %	1 mo. USD-SOFR CME Term	$	105	$	—
April 2022	May 2026	Cash flow	51,100		4.99 %	USD-SOFR w/ -5 Day Lookback + 2.50%	818		1,602
April 2022	May 2026	Cash flow	91,000		4.54 %	USD-SOFR w/ -5 Day Lookback + 2.05%	1,456		2,851
August 2022	February 2027	Cash flow	250,000		2.60 %	1 mo. USD-SOFR CME Term	4,231		7,933
August 2022	August 2027	Cash flow	250,000		2.54 %	1 mo. USD-SOFR CME Term	5,127		8,973
Interest rate swap assets							$	11,737	$	21,359
May 2023(3)(4)	May 2028	Cash flow	400,000		3.59 %	USD-SOFR w/ -5 Day Lookback	$	(4,847)	$	—
January 2024(5)	February 2029	Cash flow	750,000		3.59 %	USD-SOFR w/ -5 Day Lookback	(11,382)		—
Interest rate swap liabilities							$	(16,229)	$	—

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(1)Represents interest rate swap instruments that hedge fluctuations in interest payments on variable rate debt by converting the interest rates to fixed interest rates. The changes in fair value of designated derivatives that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets.

(2)Derivative assets are recorded at fair value in other assets, net and derivative liabilities are recorded at fair value in accounts payable, accrued liabilities, and other liabilities on the Consolidated Balance Sheets.

(3)Includes interest rate swap instruments acquired as part of the Merger (see Note 3). These interest rate swap instruments were redesignated as cash flow hedges on the Closing Date. As a result of the Merger, the aggregate fair value of these interest rate swap instruments was determined to be $7 million on March 1, 2024, which was recognized within other assets, net on the Consolidated Balance Sheets on the Closing Date. The aggregate fair value as of the Closing Date is being amortized into interest expense on the Consolidated Statements of Operations over the terms of the related interest rate swap instruments. During the three and nine months ended September 30, 2024, the Company recognized $1 million and $2 million, respectively, of related amortization into interest expense.

(4)Includes two interest rate swap instruments each with notional amounts of $110 million and one interest rate swap instrument with a notional amount of $180 million.

(5)Includes the following: (i) two interest rate swap instruments each with a pay rate of 3.56% and $50 million notional amount; (ii) three interest rate swap instruments each with a pay rate of 3.57% and $50 million notional amount; (iii) one interest rate swap instrument with a pay rate of 3.58% and $100 million notional amount; (iv) five interest rate swap instruments each with a pay rate of 3.60% and $50 million notional amount; and (v) three interest rate swap instruments each with a pay rate of 3.61% and $50 million notional amount.