2 unchanged sentences
Interest rate risk —We borrow debt at a combination of variable and fixed rates.
−Removed: As of June 30, 2025, our indebtedness included $500.0 million in term loans, $400.0 million in notes payable, $159.0 million in secured revolving credit facilities and $103.0 million in secured notes payable.
−Removed: As of June 30, 2025, we had $659.0 million of outstanding variable rate indebtedness.
−Removed: The unused portion ($1.3 billion at June 30, 2025) of our revolving credit facilities, should they be drawn upon, is subject to variable rates.
+Added: As of September 30, 2025, our indebtedness included $500.0 million in term loans and $400.0 million in notes payable.
+Added: As of September 30, 2025, we had $500.0 million of outstanding variable rate indebtedness.
+Added: The unused portion ($1.2 billion at September 30, 2025) of our Third Amended Revolving Facility, should it be drawn upon, is subject to variable rates.
An increase in interest rates could make the financing of any acquis ition by us more costly as well as increase the costs of our variable rate debt obligations.
1 unchanged sentence
Increased inflation may also have a pronounced negative impact on the interest expense we pay in connection with our outstanding indebtedness, as these costs could increase at a rate higher than our rents.
−Removed: We manage, or hedge, interest rate risks related to our borrowings by means of interest rate cap agreements.
+Added: We manage, or hedge, interest rate risks related to our borrowings by means of interest rate swap agreements.
However, the REIT provisions of the Internal Revenue Code of 1986, as amended, substantially limit our ability to hedge our assets and liabilities.
1 unchanged sentence
We also expect to manage our exposure to interest rate risk by maintaining a mix of fixed and variable rates for our indebtedness.
−Removed: As of June 30, 2025, we had two interest rate caps, which set a cap for the SONIA portion of the interest rate for a notional amount of £100 million of borrowings under the secured revolving credit facilities.
−Removed: Based on our outstanding debt balance as of June 30, 2025 described above and the interest rates applicable to our outstanding debt at June 30, 2025, and inclusive of the impact of interest rate caps, a hypothetical 100 basis point increase in the interest rates related to our variable rate debt would have increased interest expense approximately $2.6 million for the six months ended June 30, 2025.
−Removed: Subsequent to June 30, 2025, the secured revolving credit facilities were fully paid off and related outstanding interest rate caps were settled.
−Removed: On July 10, 2025, we entered into two interest rate swaps, with a notional amount of $250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility.
+Added: As of September 30, 2025, we had two interest rate swaps, with a notional amount of $250.0 million each, to hedge the variable cash flows associated with the Term Loan Facility.
The interest rate swaps convert the Term Loan Facility’s Term SOFR rate to an effective fixed interest rate of 3.5%.
2 unchanged sentences
Exchange rate risk —We are exposed to changes in foreign exchange rates as a result of our real estate investments in the United Kingdom.
−Removed: Our foreign currency exposure is partially mitigated through the use of British Pound denominated intercompany debt totaling £270.4 million as of June 30, 2025 and foreign currency forward contracts.
−Removed: Based solely on our
−Removed: results of operations for the six months ended June 30, 2025, if the applicable exchange rate were to increase or decrease by 10%, our net income from our consolidated U.K.-based investments would increase or decrease, as applicable, by $0.4 million.
−Removed: To hedge a portion of the interest expense due on our intercompany debt in the U.K., at June 30, 2025, we have four foreign currency forward contracts with notional amounts totaling £31.0 million that mature between 2025 and 2026.
+Added: Our foreign currency exposure is partially mitigated through the use of British Pound denominated intercompany debt totaling £462.4 million as of September 30, 2025 and foreign currency forward contracts.
+Added: Based solely on our results of operations for the nine months ended September 30, 2025, if the applicable exchange rate were to increase or decrease by 10%, our net income from our consolidated U.K.-based investments would increase or decrease, as applicable, by $1.6 million.
+Added: To hedge a portion of the interest expense due on our intercompany debt in the U.K., at September 30, 2025, we have three foreign currency forward contracts with notional amounts totaling £23.2 million that mature between 2025 and 2026.
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.