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Derivatives

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

The Company had the following derivatives that were designated as cash flow hedges of interest rate risk (in thousands):

																																										Fair Value of Assets
Hedged Debt						Type						Fixed Rate						Index						Effective Date						Maturity Date						Notional Amount						June 30, 2024						December 31, 2023
Senior unsecured term loans						Swap (1)						1.63		%				SOFR						November 28, 2022						July 25, 2024						$	87,500					216						1,660
Senior unsecured term loans						Swap (1)						1.63		%				SOFR						November 28, 2022						July 25, 2024						$	87,500					216						1,658
Senior unsecured term loans						Swap						3.36		%				SOFR						March 1, 2023						January 1, 2028						$	75,000					1,958						554
Senior unsecured term loans						Swap						3.50		%				SOFR						March 1, 2023						January 1, 2027						$	75,000					1,537						449
																																										$	3,927					$	4,321

______________________

(1)Swap was designated as cash flow hedge as of April 1, 2023.

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2024, such derivatives were used to hedge the variable cash flows associated with variable-rate debt.

The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands):

						Three Months Ended June 30,												Six Months Ended June 30,
Effect of derivative instruments			Location in Statements of Operations and Comprehensive Income			2024						2023						2024						2023
Loss (gain) recognized in other comprehensive income			Unrealized loss (gain) on interest rate derivative instruments			$	1,355					$	(3,467)					$	394					$	(3,383)
Interest (income) for derivatives that were designated as cash flow hedges			Interest expense			$	(2,351)					$	(2,395)					$	(4,708)					$	(2,542)
Interest (income) expense for derivatives that were not designated as cash flow hedges			Interest expense			$	—					$	—					$	—					$	469

During the next twelve months, the Company estimates that $2.3 million will be reclassified from other comprehensive income as a decrease to interest expense.

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- References

No definition available.

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- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-5

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 815
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/815/tableOfContent

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