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Interest Rate Risk
−Removed: We may periodically enter into certain interest rate protection and interest rate swap agreements to effectively convert existing floating rate debt to a fixed rate basis.
+Added: We may periodically enter into certain interest rate protection agreements, including interest rate swap agreements to effectively convert existing floating rate debt to a fixed rate basis.
We do not enter into derivatives or other financial instruments for trading or speculative purposes.
−Removed: As of September 30, 2025 we have interest rate swap agreements in effect to fix the interest rates on consolidated debt with notional amounts totaling $386.7 million.
−Removed: In addition, at our Galveston unconsolidated joint venture we have a $60.0 million interest rate swap in place.
−Removed: See Note 8 to the consolidated financial statements for additional details related to our outstanding consolidated derivatives.
−Removed: As of September 30, 2025, 4% of our outstanding consolidated debt, excluding the amount of variable rate debt with interest rate protection agreements in place, had variable interest rates and therefore was subject to market fluctuations.
−Removed: A change in the SOFR index of 100 basis points would result in an increase or decrease of approximately $600,000 in interest expense on an annual basis.
−Removed: The interest rate spreads associated with our unsecured lines of credit and our unsecured term loan are based on our three investment grade credit ratings.
−Removed: As of September 30, 2025, we had a $60.0 million balance on our unsecured line of credit.
−Removed: Upgrades to our credit ratings could provide a decrease in interest expense.
−Removed: If downgrades to our credit ratings occur, interest expense could increase depending upon the level of downgrade.
+Added: As of March 31, 2026 we had interest rate swap agreements in effect to fix the interest rates on consolidated debt with aggregate notional amounts totaling $461.7 million.
+Added: In addition, our unconsolidated joint venture in Galveston, Texas has a $60.0 million interest rate swap agreement in place.
+Added: See Note 6 to the consolidated financial statements for additional details related to our outstanding consolidated derivative instruments.
+Added: As of March 31, 2026, none of our outstanding consolidated debt, after taking into account interest rate protection agreements in place on our variable debt, had variable interest rates and therefore was not directly subject to market fluctuations.
+Added: The interest rate spreads associated with our unsecured lines of credit and our unsecured term loans are based on our three investment-grade credit ratings.
+Added: As of March 31, 2026, we had no outstanding balances on our unsecured lines of credit.
+Added: Upgrades to our credit ratings could reduce our interest expense.
+Added: If our credit ratings downgrade, our interest expense could increase, depending upon the level of downgrade.
The information presented herein is merely an estimate and has limited predictive value.
−Removed: As a result, the ultimate effect upon our operating results of interest rate fluctuations will depend on the interest rate exposures that arise during the period, our hedging strategies at that time and future changes in the level of interest rates.
+Added: As a result, the ultimate effect of interest rate fluctuations on our operating results will depend on the interest rate exposures that arise during the period, our hedging strategies at that time and future changes in the level of interest rates.
The estimated fair value and recorded value of our debt consisting of senior, unsecured notes, unsecured term loans, secured mortgages and unsecured lines of credit were as follows (in thousands):
−Removed: September 30, 2025 December 31, 2024
+Added: March 31, 2026 December 31, 2025
Fair value of debt $ 1,835,353 $ 1,557,810
Recorded value of debt $ 1,865,674 $ 1,596,821
−Removed: A 100 basis point increase from prevailing interest rates at September 30, 2025 and December 31, 2024 would result in a decrease in fair value of total consolidated debt of approximately $32.3 million and $34.5 million, respectively.
+Added: A 100 basis point increase from prevailing interest rates at March 31, 2026 and December 31, 2025 would result in a decrease in fair value of total consolidated debt of approximately $36.7 million and $30.2 million, respectively.
Refer to Note 7 to the consolidated financial statements for a description of our methodology in calculating the estimated fair value of debt.
4 unchanged sentences
Our currency exposure is concentrated in the Canadian Dollar.
−Removed: To mitigate some of the risk related to changes in foreign currency, cash flows received from our Canadian joint ventures are either reinvested to fund ongoing Canadian development activities, if applicable, or converted to US dollars and utilized to repay amounts outstanding under our unsecured lines of credit, if any.
+Added: To mitigate some of the risk related to changes in foreign currency, cash flows received from our Canadian joint ventures are either reinvested to fund ongoing Canadian development activities, if applicable, or converted to U.S.
+Added: dollars and utilized to repay amounts outstanding under our unsecured lines of credit, if any.
Accordingly, cash held in Canadian Dollars at any point in time is insignificant.
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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.