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Derivatives
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
We have the following derivatives (dollars in thousands):

Fair Value of Assets (Liabilities)
Hedged DebtTypeFixed RateIndexEffective DateMaturity DateNotional AmountSeptember 30,
2025		December 31, 2024
Unsecured term loansSwap3.36 %SOFRMarch 1, 2023January 1, 2028$75,000 $(61)$1,328 
Unsecured term loansSwap3.50 %SOFRMarch 1, 2023January 1, 2027$75,000 4 747 
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 42 757 
Unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 42 758 
Unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 134 456 
Unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 140 628 
Unsecured term loansSwap3.23 %SOFRJanuary 2, 2026January 1, 2029$75,000 (133)— 
$168 $4,674 
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 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt. On October 15, 2025, we entered into an additional interest rate swap agreement for a notional amount of $50 million that will be effective January 4, 2027.

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 September 30,Nine Months Ended September 30,
Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income2025202420252024
Loss recognized in other comprehensive incomeUnrealized loss on interest rate derivative instruments$664 $4,237 $4,505 $4,631 
Interest income for derivatives that were designated as cash flow hedgesInterest expense$(847)$(1,155)$(2,485)$(5,863)

During the next 12 months, we estimate that $0.8 million will be reclassified from other comprehensive income as a decrease to interest expense.