2 unchanged sentences
We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control.
−Removed: The following is a summary of our exposure to a change in interest rates:
+Added: The following table summarizes our exposure to a change in interest rates:
December 31, 2025
14 unchanged sentences
(1) Includes variable rate mortgage loans with interest rate cap agreements.
−Removed: For mortgage loans with interest rate caps, the weighted average interest rate cap strike was 3.36%, and the weighted average maturity date of the interest rate caps is the first quarter of 2026.
The interest rate cap strike is exclusive of the credit spreads associated with the mortgage loans.
−Removed: As of December 31, 2024, one-month term SOFR was 4.33% and the 30-day average SOFR was 4.53%.
+Added: As of December 31, 2025, one-month term SOFR was 3.69%.
The impact of these interest rate caps is reflected in our calculation of the annual effect of a 1% change in base rates, as applicable.
1 unchanged sentence
(3) As of December 31, 2025, daily SOFR was 3.87%.
−Removed: The interest rate for the revolving credit facility excludes a 0.20% and 0.15% facility fee as of December 31, 2024 and 2023.
−Removed: (4) As of December 31, 2024, the outstanding balance was fixed by interest rate swap agreements.
−Removed: As of December 31, 2024, the interest rate swaps fix SOFR at a weighted average interest rate of 4.00% for the Tranche A-1 Term Loan, 2.81% for the Tranche A-2 Term Loan and 4.01% for the 2023 Term Loan.
+Added: The interest rate for the revolving credit facility excludes a 0.20% facility fee.
+Added: (4) As of December 31, 2025 and 2024, the outstanding balance was fixed by interest rate swap agreements.
+Added: The interest rate swaps fix SOFR at a weighted average interest rate of 4.00% for the Tranche A-1 Term Loan, 2.81% for the Tranche A-2 Term Loan and 4.01% for the 2023 Term Loan.
See Note 10 to the consolidated financial statements for additional information.
8 unchanged sentences
We assess the effectiveness of our hedges both at inception and on an ongoing basis.
−Removed: If the hedges are deemed to be effective, the fair value is recorded in "Accumulated other comprehensive income" in our consolidated balance sheets and is subsequently reclassified into "Interest expense" in our consolidated statements of operations in the period that the hedged forecasted transactions affect earnings.
+Added: If the hedges are deemed to be effective, the fair value is recorded in "Accumulated other comprehensive income (loss)" in our consolidated balance sheets and is subsequently reclassified into "Interest expense" in our consolidated statements of operations in the period that the hedged forecasted transactions affect earnings.
Our hedges become less than perfectly effective if the critical terms of the hedging instrument and the forecasted transactions do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and interest rates.
2 unchanged sentences
As of December 31, 2025 and 2024, we had interest rate swap and cap agreements with an aggregate notional value of $1.3 billion and $2.0 billion, which were designated as effective hedges.
−Removed: The fair value of our interest rate swaps and caps designated as effective hedges consisted of assets totaling $23.4 million and $35.6 million as of December 31, 2024 and 2023 included in "Other assets, net" in our consolidated balance sheets, and liabilities totaling $90,000 and $7.9 million as of December 31, 2024 and 2023 included in "Other liabilities, net" in our consolidated balance sheets.
+Added: The fair value of our interest rate swaps and caps designated as effective hedges consisted of assets totaling $7.0 million and $23.4 million as of December 31, 2025 and 2024 included in "Other assets, net" in our consolidated balance sheets, and liabilities totaling $6.4 million and $90,000 as of December 31, 2025 and 2024 included in "Other liabilities, net" in our consolidated balance sheets.
Non-Designated Derivatives
1 unchanged sentence
These derivatives are carried at their estimated fair value on a recurring basis with realized and unrealized gains (losses) recorded in "Interest expense" in our consolidated statements of operations.
−Removed: As of December 31, 2024 and 2023, we had various interest rate cap agreements with an aggregate notional value of $167.5 million and $642.7 million, which were non-designated derivatives.
+Added: As of December 31, 2025 and 2024, we had various interest rate cap agreements with an aggregate notional value of $167.5 million, which were non-designated derivatives.
The fair value of our interest rate cap agreements which were non-designated derivatives consisted of assets totaling $6.1 million and $2.3 million as of December 31, 2025 and 2024, included in "Other assets, net" in our consolidated balance sheets, and liabilities totaling $6.0 million and $2.3 million as of December 31, 2025 and 2024, included in "Other liabilities, net" in our consolidated balance sheets.
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.