3 unchanged sentences
The following is a summary of our annual exposure to a change in interest rates:
−Removed: March 31, 2025
+Added: June 30, 2025
December 31, 2024
14 unchanged sentences
The interest rate cap strike is exclusive of the credit spreads associated with the mortgage loans.
−Removed: As of March 31, 2025, one-month term SOFR was 4.32%.
+Added: As of June 30, 2025, one-month term SOFR was 4.32%.
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.
(2) Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements.
−Removed: (3) As of March 31, 2025, daily SOFR was 4.41%.
+Added: (3) As of June 30, 2025, daily SOFR was 4.45%.
The interest rate for our revolving credit facility excludes a 0.20% facility fee.
−Removed: (4) As of March 31, 2025 and December 31, 2024, the outstanding balance was fixed by interest rate swap agreements.
+Added: (4) As of June 30, 2025 and December 31, 2024, the outstanding balance was fixed by interest rate swap agreements.
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.
2 unchanged sentences
The fair value of our revolving credit facility and term loans is calculated based on the net present value of payments over the term of the facilities using estimated market rates for similar notes and remaining terms.
−Removed: As of March 31, 2025 and December 31, 2024, the estimated fair value of our consolidated debt was $2.5 billion and $2.6 billion.
+Added: As of June 30, 2025 and December 31, 2024, the estimated fair value of our consolidated debt was $2.5 billion and $2.6 billion.
These estimates of fair value, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments.
4 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 balance sheets and is subsequently reclassified into "Interest expense" in our 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 balance sheets and is subsequently reclassified into "Interest expense" in our 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.
1 unchanged sentence
While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income (loss) and equity.
−Removed: As of March 31, 2025 and December 31, 2024, we had interest rate swap and cap agreements with an aggregate notional value of $1.4 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 primarily consisted of assets totaling $14.5 million and $23.4 million as of March 31, 2025 and December 31, 2024, included in "Other assets, net" in our balance sheets, and liabilities totaling $4.3 million and $90,000 as of March 31, 2025 and December 31, 2024, included in "Other liabilities, net" in our balance sheets.
+Added: As of June 30, 2025 and December 31, 2024, we had interest rate swap and cap agreements with an aggregate notional value of $1.4 billion and $2.0 billion, which were designated as effective hedges.
+Added: The fair value of our interest rate swaps and caps designated as effective hedges primarily consisted of assets totaling $6.5 million and $23.4 million as of June 30, 2025 and December 31, 2024, included in "Other assets, net" in our balance sheets, and liabilities totaling $6.3 million and $90,000 as of June 30, 2025 and December 31, 2024, included in "Other liabilities, net" in our 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 statements of operations.
−Removed: As of March 31, 2025 and December 31, 2024, we had various interest rate cap agreements with an aggregate notional value of $167.5 million, which were non-designated derivatives.
−Removed: The fair value of our interest rate cap agreements, which were non-designated derivatives, consisted of assets totaling $1.4 million and $2.3 million as of March 31, 2025 and December 31, 2024, included in "Other assets, net" in our balance sheets, and liabilities totaling $1.4 million and $2.3 million as of March 31, 2025 and December 31, 2024, included in "Other liabilities, net" in our balance sheets.
+Added: As of June 30, 2025 and December 31, 2024, we had various interest rate cap agreements with an aggregate notional value of $167.5 million, which were non-designated derivatives.
+Added: The fair value of our interest rate cap agreements, which were non-designated derivatives, consisted of assets totaling $8.0 million and $2.3 million as of June 30, 2025 and December 31, 2024, included in "Other assets, net" in our balance sheets, and liabilities totaling $7.9 million and $2.3 million as of June 30, 2025 and December 31, 2024, included in "Other liabilities, net" in our 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.