3 unchanged sentences
Market risk refers to the risk of loss from adverse changes in market prices and interest rates.
−Removed: As of June 30, 2024, we had $5,811 million of variable-rate debt under our revolver and term loan agreements bearing interest at 5.25%, plus a margin of up to 1.60%.
+Added: As of September 30, 2024, we had $2,735 million of variable-rate debt under our revolver and term loan agreements bearing interest at 4.91%, plus a margin of 92.5 basis points.
We have entered into interest rate hedges to effectively lock in the floating rates on $2,500 million of our variable-rate debt at a weighted average rate of 1.40% plus a margin of 92.5 basis points.
These hedges include swapping $1,000 million of borrowings under the Term Loan to a weighted average fixed interest rate of 0.49% plus a margin of 92.5 basis points through 2025 and 2% caps (plus margin) totaling $1,500 million on other variable-rate debt that expire in January 2026.
−Removed: As a result, our exposure to changes in interest rates as of June 30, 2024 primarily consists of our $1,298 million of borrowings under CMBS 5, which has a 6% interest rate cap that, as of June 30, 2024, was untriggered, and $2,400 billion of borrowings on the Delayed Draw Term Loan.
−Removed: As of June 30, 2024, one-month term and daily SOFR were approximately 5.3%, therefore a 100 basis point increase in market interest rates would result in an increase in interest expense to service our variable-rate debt of approximately $40 million.
+Added: As a result, our exposure to changes in interest rates as of September 30, 2024 primarily consists of our $324 million of unhedged variable rate debt.
+Added: As of September 30, 2024, one-month term and daily SOFR were approximately 5.0%, therefore a 100 basis point increase in market interest rates would result in an increase in interest expense to service our variable-rate debt of approximately $3 million.
A 100 basis point decrease in market interest rates would result in a decrease in interest of approximately $3 million.
−Removed: Subsequently to June 30, 2024, CMBS 5 and Delayed Draw Term Loan were each repaid in full using net proceeds from our IPO.
Foreign Currency Risk
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When the local currencies in these countries decline relative to our reporting currency, the U.S.
−Removed: dollar, our consolidated revenues, NOI margins, and net investment in properties and operations outside the United States decrease.
+Added: dollar, our consolidated revenues, segment NOI margins, and net investment in properties and operations outside the United States decrease.
The impact of currency fluctuations on our earnings is partially mitigated by the fact that most operating and other expenses are also incurred and paid in the local currency.
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dollars may also affect the book value of our assets and the amount of total equity.
−Removed: A hypothetical 10% depreciation in the U.S.
−Removed: dollar relative to the year-end functional currencies of our foreign subsidiaries would have resulted in a reduction in our total equity of approximately $330 million as of June 30, 2024.
+Added: A hypothetical 10% decline in the period-end functional currencies of our foreign subsidiaries relative to the U.S.
+Added: dollar would have resulted in a reduction in our total equity of approximately $390 million as of September 30, 2024.
Gains or losses from translating the financial statements of our foreign subsidiaries are reflected in the accumulated other comprehensive income (loss) component of equity within our condensed consolidated financial statements included in this Quarterly Report.
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.