Item 7. Management’s Discussion and Analysis
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.
Information required in response to Item 7 is included under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operation" on pages 10 through 21 of the Company’s 2025 Annual Report to Shareholders, and such information is incorporated herein by reference.
Item 7.A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Interest Rate Risk - We are exposed to the impact of interest rate changes through our SOFR variable-rate borrowings. If SOFR had been 100 basis points higher during 2025 interest incurred would have increased by approximately $40,000.
The following table presents the principal cash flow payments associated with our outstanding consolidated debt by year, weighted average interest rates on debt outstanding each year-end, and fair value of total debt as of December 31, 2025 (dollars in thousands):
2026 2027 2028 2029 2030 Thereafter Total Fair Value
Fixed rate debt $ — $ — $ — $ — $ — $ 180,070 $ 180,070 $ 148,736
Average interest for fixed rate debt 3.03 % 3.03 % 3.03 % 3.03 % 3.03 % 3.03 %
Variable rate debt $ — $ — $ 13,888 $ — $ — $ — $ 13,888 $ 13,888
Average interest for variable rate debt 6.50 % 6.50 % 6.50 % 6.50 % 6.50 % 6.50 %
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.