Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

As of June 30, 2026, the Company had six interest rate swap contracts and two forward starting interest rate swap contracts with an aggregate notional amount of $800.0 million. The Company has $600.0 million in notional amount that effectively fixed the interest rate on the Company’s $600.0 million unsecured term loan at 4.1%. In December 2025, the Company had entered into a $100.0 million forward starting interest rate swap which became effective in the second quarter of 2026. In April 2026, the Company entered into two forward starting interest rate swaps with an aggregate notional amount of $200.0 million which will be effective at a future date. These derivatives qualify for hedge accounting.

As of June 30, 2026 and December 31, 2025, the aggregate carrying value of the interest rate swap contracts was an asset of $6.7 million and $1.3 million, respectively, within prepaid expenses and other assets in the condensed consolidated balance sheets.

As of June 30, 2026 and December 31, 2025, the aggregate carrying value of the forward starting interest rate swap contracts was $2.5 million and $0.7 million, respectively, within prepaid expenses and other assets in the condensed consolidated balance sheets.