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, 2025 , $3.3 billion of the Company’s $3.9 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, 2025 CALCULATED
ANNUAL INTEREST ASSUMING 10%
INCREASE
in market interest rates ASSUMING 10%
DECREASE
in market interest rates
Variable Rate Debt
Unsecured Credit Facility $ 120,000 $ 4,524 $ (452) $ 452
Unsecured Term Loan due 2027 200,000 7,745 (775) 775
Unsecured Term Loan due 2028 300,000 11,618 (1,162) 1,162
$ 620,000 $ 23,887 $ (2,389) $ 2,389
The Company has outstanding interest rate swaps to help mitigate its risk related to variable rate debt. As of December 31, 2025, the Company had $500.0 million o f interest rate swaps at a weighted average rate of 3.6 5%. See Note 10 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, 2025 1
DEC. 31, 2025 1
ASSUMING 10%
INCREASE
in market interest rates ASSUMING 10%
DECREASE
in market interest rates DEC. 31, 2024
Fixed Rate Debt
Senior Notes due 2025 $ — $ — $ — $ — $ 250,605
Senior Notes due 2026 595,026 606,164 605,811 606,493 595,052
Senior Notes due 2027 492,693 506,079 505,358 506,790 494,909
Senior Notes due 2028 298,653 300,739 300,160 301,308 290,349
Senior Notes due 2030 597,188 624,006 621,642 626,339 590,648
Senior Notes due 2030 297,610 274,335 273,254 275,389 258,718
Senior Notes due 2031 296,866 261,216 259,950 262,451 244,270
Senior Notes due 2031 685,873 707,455 704,018 710,818 659,624
Mortgage Notes Payable 28,824 28,766 28,751 28,782 44,251
Total Fixed Rate Debt $ 3,292,733 $ 3,308,760 $ 3,298,944 $ 3,318,370 $ 3,428,426
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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