Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to market risk in the form of changing interest rates on its debt. Management uses regular monitoring of market conditions and analysis techniques to manage this risk.
As of December 31, 2024 , $3.5 billion of the Company’s $4.7 billion carrying value of debt bore interest at fixed rates, excluding the interest rate swaps.
The following table provides information regarding the sensitivity of certain of the Company’s financial instruments, as described above, to market conditions and changes resulting from changes in interest rates. For purposes of this analysis, sensitivity is demonstrated based on hypothetical 10% changes in the underlying market interest rates.
IMPACT ON EARNINGS AND CASH FLOW
Dollars in thousands OUTSTANDING
PRINCIPAL BALANCE
as of Dec. 31, 2024 CALCULATED
ANNUAL INTEREST ASSUMING 10%
INCREASE
in market interest rates ASSUMING 10%
DECREASE
in market interest rates
Variable Rate Debt
Unsecured Credit Facility $ — $ — $ — $ —
Unsecured Term Loan due 2025 200,000 11,180 (1,118) 1,118
Unsecured Term Loan due 2025 300,000 16,770 (1,677) 1,677
Unsecured Term Loan due 2026 150,000 8,385 (839) 839
Unsecured Term Loan due 2027 200,000 11,180 (1,118) 1,118
Unsecured Term Loan due 2028 300,000 16,770 (1,677) 1,677
$ 1,150,000 $ 64,285 $ (6,429) $ 6,429
The Company has outstanding interest rate swaps to help mitigate its risk related to variable rate debt. As of December 31, 2024, the Company h ad $1.1 billion of interest rate swaps at a weighted average rate of 3.92% . See Note 11 to the Consolidated Financial Statements for more information regarding the Company's interest rate swaps.
FAIR VALUE
Dollars in thousands CARRYING VALUE
as of Dec. 31, 2024 1
DEC. 31, 2024 1
ASSUMING 10%
INCREASE
in market interest rates ASSUMING 10%
DECREASE
in market interest rates DEC. 31, 2023
Fixed Rate Debt
Senior Notes due 2025 $ 249,868 $ 250,605 $ 250,515 $ 250,679 $ 244,233
Senior Notes due 2026 586,824 595,052 594,141 595,919 581,556
Senior Notes due 2027 488,104 494,909 493,756 496,037 483,590
Senior Notes due 2028 298,029 290,349 289,532 291,144 282,200
Senior Notes due 2030 586,028 590,648 587,926 593,321 577,702
Senior Notes due 2030 297,190 258,718 257,480 259,924 249,124
Senior Notes due 2031 296,343 244,270 242,884 245,622 235,894
Senior Notes due 2031 667,233 659,624 655,870 663,292 649,347
Mortgage Notes Payable 45,136 44,251 44,196 44,305 69,058
Total Fixed Rate Debt $ 3,514,755 $ 3,428,426 $ 3,416,300 $ 3,440,243 $ 3,372,704
1 Balances are presented net of discounts and debt issuance costs and including premiums. The fair value presented is based on Level 2 inputs defined as model-derived valuations in which significant inputs and significant value drivers are observable in active markets.
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