Fair Value of Derivative and Financial Instruments (Tables)
|
3 Months Ended |
Mar. 31, 2026 |
|---|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
|
| Summary of Company's Outstanding Interest Rate Swaps |
As of March 31, 2026, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):
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|
Effective Date |
|
Termination Date |
|
Counterparty |
|
Notional Amount |
|
|
Fixed Rate (1) |
|
|
September 1, 2019 |
|
September 1, 2026 |
|
KeyBank |
|
$ |
100,000 |
|
|
|
1.462 |
% |
|
September 1, 2019 |
|
September 1, 2026 |
|
KeyBank |
|
|
125,000 |
|
|
|
1.302 |
% |
|
January 3, 2020 |
|
September 1, 2026 |
|
KeyBank |
|
|
92,500 |
|
|
|
1.609 |
% |
|
March 4, 2020 |
|
June 1, 2026 |
|
Truist |
|
|
100,000 |
|
|
|
0.820 |
% |
|
June 1, 2021 |
|
September 1, 2026 |
|
KeyBank |
|
|
200,000 |
|
|
|
0.845 |
% |
|
June 1, 2021 |
|
September 1, 2026 |
|
KeyBank |
|
|
200,000 |
|
|
|
0.953 |
% |
|
April 3, 2025 |
|
April 1, 2030 |
|
JPM |
|
|
100,000 |
|
|
|
3.489 |
% |
|
|
|
|
|
|
|
$ |
917,500 |
|
|
|
1.361 |
% |
(2) |
(1)The floating rate option for the interest rate swaps is Adjusted SOFR other than for the JPM swap which is based on SOFR. As of March 31, 2026, Adjusted SOFR and SOFR were 3.77% and 3.65%, respectively. (2)Represents the weighted average fixed rate of the interest rate swaps. As of March 31, 2026, the Company had the following outstanding interest rate swap that was designated as a cash flow hedge of interest rate risk with a future effective date (dollars in thousands): Future Swap
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|
|
|
Effective Date |
|
Termination Date |
|
Counterparty |
|
Notional Amount |
|
|
Fixed Rate (1) |
|
|
September 1, 2026 |
|
January 1, 2027 |
|
KeyBank |
|
$ |
92,500 |
|
|
|
1.798 |
% |
|
(1)The floating rate option for the interest rate swap is Adjusted SOFR. As of March 31, 2026, Adjusted SOFR was 3.77%.
|
| Summary of Derivative Financial Instruments and Classification on the Consolidated Balance Sheet |
The table below presents the fair value of the Company’s derivative financial instruments, which use level 2 inputs, as well as their classification on the consolidated balance sheets as of March 31, 2026 and December 31, 2025 (in thousands):
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Asset Derivatives |
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|
Liability Derivatives |
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|
Balance Sheet Location |
|
March 31, 2026 |
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|
December 31, 2025 |
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|
March 31, 2026 |
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|
December 31, 2025 |
|
Derivatives designated as hedging instruments: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
Fair market value of interest rate swaps |
|
$ |
9,222 |
|
|
$ |
13,434 |
|
|
$ |
— |
|
|
$ |
475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
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|
|
|
|
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Interest rate caps |
|
Prepaid and other assets |
|
|
144 |
|
|
|
16 |
|
|
|
— |
|
|
|
— |
|
Total |
|
|
|
$ |
9,366 |
|
|
$ |
13,450 |
|
|
$ |
— |
|
|
$ |
475 |
|
|
| Summary of Derivative Financial Instruments on Consolidated Statements of Operations and Comprehensive Loss |
The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2026 and 2025 (in thousands):
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|
Amount of gain (loss)
recognized in OCI |
|
|
Location of gain
(loss) reclassified
from accumulated |
|
Amount of gain (loss)
reclassified from
OCI into income |
|
|
|
2026 |
|
|
2025 |
|
|
OCI into income |
|
2026 |
|
|
2025 |
|
Derivatives designated as hedging instruments: |
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|
|
|
|
|
|
|
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|
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|
For the three months ended March 31, |
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|
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|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
1,805 |
|
|
$ |
(1,787 |
) |
|
Interest expense |
|
$ |
5,542 |
|
|
$ |
8,436 |
|
Interest rate caps |
|
$ |
— |
|
|
$ |
139 |
|
|
Interest expense |
|
$ |
— |
|
|
$ |
88 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
Location of gain
(loss) |
|
Amount of gain (loss)
recognized in income |
|
|
|
|
|
|
|
recognized in
income |
|
2026 |
|
|
2025 |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31, |
|
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|
|
|
|
|
|
|
|
|
|
Interest rate caps |
|
|
|
|
|
Interest expense |
|
$ |
98 |
|
|
$ |
(591 |
) |
|
| Schedule of Outstanding Principal Balance and Estimated Fair Value of Debt Instruments |
The table below presents the outstanding principal balance and estimated fair values of our debt at March 31, 2026 and December 31, 2025 (in thousands):
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|
March 31, 2026 |
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|
December 31, 2025 |
|
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|
Outstanding Principal Balance |
|
|
Estimated
Fair Value |
|
|
Outstanding Principal Balance |
|
|
Estimated
Fair Value |
|
Fixed rate debt |
|
$ |
33,817 |
|
|
$ |
33,061 |
|
|
$ |
33,817 |
|
|
$ |
33,152 |
|
Floating rate debt (1) |
|
$ |
1,566,712 |
|
|
$ |
1,537,078 |
|
|
$ |
1,559,425 |
|
|
$ |
1,527,915 |
|
(1)Includes balances outstanding under our Credit Facility.
|
| Not Designated as Hedging Instruments |
|
| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
|
| Summary of Company's Outstanding Interest Rate Caps |
As of March 31, 2026, the Company had the following interest rate caps outstanding that were not designated as cash flow hedges of interest rate risk (dollars in thousands):
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Properties |
|
Type |
|
Maturity Date |
|
Notional |
|
|
Strike Rate |
|
Avant at Pembroke Pines |
|
Floating |
|
10/1/2027 |
|
$ |
248,185 |
|
|
8.16% |
|
Brandywine I & II |
|
Floating |
|
10/1/2027 |
|
|
59,526 |
|
|
8.16% |
|
Sabal Palm at Lake Buena Vista |
|
Floating |
|
10/1/2027 |
|
|
56,220 |
|
|
8.41% |
|
Cornerstone |
|
Floating |
|
10/1/2027 |
|
|
45,815 |
|
|
8.66% |
|
Arbors of Brentwood |
|
Floating |
|
10/1/2027 |
|
|
39,977 |
|
|
8.16% |
|
Bella Vista |
|
Floating |
|
10/1/2027 |
|
|
37,400 |
|
|
8.91% |
|
Estates on Maryland |
|
Floating |
|
10/1/2027 |
|
|
37,345 |
|
|
8.91% |
|
The Venue on Camelback |
|
Floating |
|
10/1/2027 |
|
|
36,465 |
|
|
8.16% |
|
The Enclave |
|
Floating |
|
10/1/2027 |
|
|
33,440 |
|
|
8.66% |
|
Residences at Glenview Reserve |
|
Floating |
|
10/1/2027 |
|
|
33,271 |
|
|
8.16% |
|
The Adair |
|
Floating |
|
10/1/2027 |
|
|
33,229 |
|
|
8.16% |
|
High House at Cary |
|
Floating |
|
10/1/2027 |
|
|
32,478 |
|
|
8.16% |
|
Six Forks Station |
|
Floating |
|
10/1/2027 |
|
|
30,430 |
|
|
8.16% |
|
The Verandas at Lake Norman |
|
Floating |
|
10/1/2027 |
|
|
30,113 |
|
|
8.16% |
|
The Heritage |
|
Floating |
|
10/1/2027 |
|
|
29,810 |
|
|
8.91% |
|
Versailles II |
|
Floating |
|
10/1/2027 |
|
|
15,706 |
|
|
8.16% |
|
Summers Landing |
|
Floating |
|
10/1/2027 |
|
|
14,135 |
|
|
8.66% |
|
Rockledge Apartments |
|
Floating |
|
12/1/2027 |
|
|
78,444 |
|
|
7.66% |
|
The Preserve at Terrell Mill |
|
Floating |
|
12/1/2027 |
|
|
74,341 |
|
|
7.66% |
|
Bloom |
|
Floating |
|
12/1/2027 |
|
|
60,848 |
|
|
7.66% |
|
Fairways at San Marcos |
|
Floating |
|
12/1/2027 |
|
|
55,056 |
|
|
7.66% |
|
Torreyana Apartments |
|
Floating |
|
12/1/2027 |
|
|
43,153 |
|
|
7.66% |
|
Atera Apartments |
|
Floating |
|
12/1/2027 |
|
|
38,555 |
|
|
7.66% |
|
Bella Solara |
|
Floating |
|
12/1/2027 |
|
|
37,772 |
|
|
7.66% |
|
Seasons 704 Apartments |
|
Floating |
|
12/1/2027 |
|
|
33,960 |
|
|
7.66% |
|
Courtney Cove |
|
Floating |
|
12/1/2027 |
|
|
31,596 |
|
|
7.66% |
|
Parc500 |
|
Floating |
|
12/1/2027 |
|
|
30,012 |
|
|
7.66% |
|
Madera Point |
|
Floating |
|
12/1/2027 |
|
|
29,676 |
|
|
7.66% |
|
Creekside at Matthews |
|
Floating |
|
12/1/2027 |
|
|
28,703 |
|
|
7.66% |
|
The Summit at Sabal Park |
|
Floating |
|
12/1/2027 |
|
|
26,735 |
|
|
7.66% |
|
Versailles |
|
Floating |
|
12/1/2027 |
|
|
26,108 |
|
|
7.66% |
|
Venue at 8651 |
|
Floating |
|
12/1/2027 |
|
|
24,620 |
|
|
7.66% |
|
Cutter's Point |
|
Floating |
|
12/1/2027 |
|
|
18,994 |
|
|
7.66% |
|
Arbors on Forest Ridge |
|
Floating |
|
12/1/2027 |
|
|
17,307 |
|
|
7.66% |
|
Sedona at Lone Mountain |
|
Floating |
|
2/1/2029 |
|
|
40,287 |
|
|
7.17% |
|
|
|
|
|
|
|
$ |
1,509,712 |
|
|
8.01% |
|
|