Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

As of September 30, 2026, the Company had seven interest rate swap contracts and three forward starting interest rate swap contracts with an aggregate notional amount of $930.0 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%. The Company entered into three forward starting interest rate swaps with an aggregate notional amount of $300.0 million which will become effective in October 2026 upon maturity of interest swaps on the unsecured term loan. In August 2026, the Company entered into an interest rate swap with an aggregate notional amount of $30.0 million that effectively converts $30.0 million of variable rate mortgage notes payable to an all-in fixed rate of 5.3%. These derivatives qualify for hedge accounting.

As of September 30, 2026 and December 31, 2025, the aggregate carrying value of the interest rate swap contracts was an asset of $15.0 million and $1.3 million, respectively, within prepaid expenses and other assets in the condensed consolidated balance sheets.

As of September 30, 2026 and December 31, 2025, the aggregate carrying value of the forward starting interest rate swap contracts was $11.5 million and $0.7 million, respectively, within prepaid expenses and other assets in the condensed consolidated balance sheets.