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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Summary of Derivative Liabilities Measured at Fair Value
The following table includes a summary of the compound embedded derivative liabilities measured at fair value using significant unobservable (Level 3) inputs (in thousands):
Fair Value
Balance at March 31, 202421,072 
Re-measurement of fair value128 
Balance at June 30, 202421,200 
Re-measurement of fair value1,200 
Balance at September 30, 202422,400 
Re-measurement of fair value6,699 
Balance at December 31, 202429,099 
Re-measurement of fair value901 
Payment of derivative liability
(30,000)
Balance at March 31, 2025 and June 30, 2025
$— 
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
Quoted Market Prices (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total
June 30, 2025:
Assets
Derivative assets:
Interest rate derivatives – floors
$— $657 $— $657 
Interest rate derivatives – caps
— 1,788 — 1,788 
Total$— $2,445 $— $2,445 
(1)
December 31, 2024:
Assets
Derivative assets:
Interest rate derivatives – floors
$— $434 $— $434 
Interest rate derivatives – caps
— 2,160 — 2,160 
Total$— $2,594 $— $2,594 
(1)
Liabilities
Embedded debt derivative$— $— $(29,099)$(29,099)
(2)
Net$— $2,594 $(29,099)$(26,505)
____________________________________
(1)    Reported as “derivative assets” in our consolidated balance sheets.
(2)    Reported in “indebtedness, net” in our consolidated balance sheets.
Summary of Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations
The following table summarizes the effect of fair value measured assets and liabilities on our consolidated statements of operations (in thousands):
Gain (Loss) Recognized in Income
Three Months Ended June 30,
20252024
Assets
Derivative assets:
Interest rate derivatives – floors
$39 $— 
Interest rate derivatives – caps
(875)1,485 
Total$(836)$1,485 
Liabilities
Derivative liabilities:
Embedded debt derivative$— $(128)
Net$(836)$1,357 
Total combined
Interest rate derivatives – floors
$39 $— 
Interest rate derivatives – caps
(1,348)(5,873)
Embedded debt derivative— (128)
Unrealized gain (loss) on derivatives(1,309)
(1)
(6,001)
(1)
Realized gain (loss) on interest rate caps473 
(1) (2)
7,358 
(1) (2)
Net$(836)$1,357 
____________________________________
(1)    Reported as “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.
(2)    Represents settled and unsettled payments from counterparties on interest rate caps.
Gain (Loss) Recognized in Income
Six Months Ended June 30,
20252024
Assets
Derivative assets:
Interest rate derivatives – floors
$223 $— 
Interest rate derivatives – caps
(2,898)3,622 
Total$(2,675)$3,622 
Liabilities
Derivative liabilities:
Embedded debt derivative$(901)$2,496 
Net$(3,576)$6,118 
Total combined
Interest rate derivatives – floors
$223 $— 
Interest rate derivatives – caps
(3,693)(12,450)
Embedded debt derivative(901)2,496 
Unrealized gain (loss) on derivatives(4,371)
(1)
(9,954)
(1)
Realized gain (loss) on interest rate caps795 
(1) (2)
16,072 
(1) (2)
Net$(3,576)$6,118 
____________________________________
(1)    Reported as “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations.
(2)    Represents settled and unsettled payments from counterparties on interest rate caps.