ITEM 3—Quantitative and Qualitative Disclosures about Market Risk.
−Removed: We are exposed to certain market risks, one of the most predominant of which is a change in interest rates.
+Added: We are exposed to certain market risks, of which one of the most significant is a change in interest rates.
+Added: Our future earnings, cash flows and fair values relevant to financial instruments are dependent upon prevalent market interest rates.
+Added: Our primary market risk results from our indebtedness, which bears interest at fixed and variable rates.
+Added: The fair values of our debt obligations are affected by changes in the market interest rates.
Unless we have entered into interest rate swaps or other derivatives to fix the interest rate, increases in interest rates can result in increased interest expense under our 2025 Credit Facility, 2024 Unsecured Term Loan, Commercial Paper Program, certain mortgage loans and other debt that bears interest at variable rates.
Increases in interest rates can also result in increased interest expense when our fixed rate debt matures and needs to be refinanced.
−Removed: As of September 30, 2025, approximately $14.3 billion of our indebtedness bore interest at fixed rates and therefore the fair value of these instruments is not affected by changes in the market interest rates.
+Added: We manage our market risk by matching long-term leases with long-term, fixed-rate, non-recourse debt of similar duration.
+Added: We continue to follow a conservative strategy of generally pre-leasing development projects on a long-term basis to creditworthy clients in order to achieve the most favorable construction and permanent financing terms.
+Added: As of March 31, 2026, approximately $13.3 billion of our indebtedness bore interest at fixed rates, and therefore the fair value of these instruments is not affected by changes in the market interest rates.
The remaining approximately $2.3 billion of outstanding indebtedness bore interest at variable rates, including approximately $800.0 million of unsecured term loans, $750.0 million of borrowings under the Commercial Paper Program, and approximately $800.0 million of secured debt.
However, we have entered into interest rate swaps with notional amounts aggregating $800.0 million for our secured debt and $100.0 million for BPLP’s 2024 Unsecured Term Loan, thus fixing the interest rates for all or a portion of the applicable debt term (See Note 7 to the Consolidated Financial Statements for information pertaining to interest rate swap contracts).
−Removed: Therefore, as of September 30, 2025, we had approximately $1.4 billion of variable rate debt outstanding.
−Removed: The following table presents our aggregate debt obligations carrying value, estimated fair value and where applicable, the corresponding weighted-average GAAP interest rates sorted by maturity date as of September 30, 2025.
+Added: Therefore, as of March 31, 2026, we effectively had approximately $1.4 billion of variable rate debt outstanding.
+Added: The following table presents our aggregate debt obligations carrying value, estimated fair value and where applicable, the corresponding weighted-average GAAP interest rates sorted by maturity date as of March 31, 2026.
The table below does not include our unconsolidated joint venture debt.
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Total Debt $ 1,836,796 $ 3,035,835 $ 1,789,087 $ 1,722,293 $ 690,362 $ 6,539,636 $ 15,614,009 $ 14,868,607
−Removed: At September 30, 2025, the weighted-average stated interest rates on the fixed rate debt stated above was 3.59% per annum.
−Removed: At September 30, 2025, our outstanding variable rate debt totaled approximately $2.3 billion, of which $900.0 million was subject to interest rate swaps.
−Removed: At September 30, 2025, the weighted-average stated interest rate on our variable rate debt, including the effect of the interest rate swaps, was 5.22% per annum.
−Removed: If market interest rates on our variable rate debt had been 100 basis points greater, total interest expense would have increased approximately $5.9 million and $17.6 million for the three and nine months ended September 30, 2025, respectively.
+Added: At March 31, 2026, the weighted-average stated interest rate on the fixed rate debt stated above was 3.73% per annum.
+Added: At March 31, 2026, our outstanding variable rate debt totaled approximately $2.3 billion, of which $900.0 million was subject to interest rate swaps.
+Added: At March 31, 2026, the weighted-average stated interest rate on our variable rate debt, including the effect of the interest rate swaps, was 4.85% per annum.
+Added: interest rates on our variable rate debt had been 100 basis points greater, total interest expense would have increased approximately $5.9 million for the three months ended March 31, 2026.
Our use of derivative instruments also involves certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in the contract.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.