16 unchanged sentences
However, interest rate fluctuations may affect the fair value of our fixed rate debt instruments.
−Removed: At December 31, 2024, we had $3.9 billion of fixed-rate debt outstanding, including $252.1 million in mortgage payables that are effectively fixed by five interest rate swap agreements.
+Added: At December 31, 2025, we had $4.1 billion of fixed-rate debt outstanding, including $450.0 million of our unsecured term loan and $50.6 million of mortgage payables for which the rate is effectively fixed by interest rate swap agreements.
If market interest rates used to calculate the fair value on our fixed-rate debt instruments at December 31, 2025 had been 1.0% higher, the fair value of those debt instruments on that date would have decreased by approximately $137.4 million.
2 unchanged sentences
Generally, we believe that our primary interest rate risk is due to fluctuations in interest rates on our outstanding variable rate debt.
−Removed: At December 31, 2024, we had $600.0 million of variable rate debt outstanding (the principal balance on our unsecured term loan).
+Added: At December 31, 2025, we had $865.0 million of variable rate debt outstanding, comprised of $310.0 million outstanding on our revolving credit facility, $300.0 million of our unsecured term loan, our $200.0 million mortgage loan at Bethesda Row, and our $55.0 million mortgage loan at Azalea.
Based upon this amount of variable rate debt and the specific terms, if market interest rates increased 1.0%, our annual interest expense would increase approximately $8.7 million with a corresponding decrease in our net income and cash flows for the year.
Conversely, if market interest rates decreased 1.0%, our annual interest expense would decrease by approximately $8.7 million with a corresponding increase in our net income and cash flows for the year.
−Removed: While no amounts were outstanding at December 31, 2024, we have a $1.25 billion revolving credit facility that bears interest at a variable rate.
−Removed: If we increase our outstanding balance on the revolving credit facility in the future, additional decreases to future earnings and cash flows could occur.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
2 unchanged sentences
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.