XML 49 R36.htm IDEA: XBRL DOCUMENT v3.25.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule 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, June 30, 2025 and September 30, 2025
$— 
Schedule 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
September 30, 2025:
Assets
Derivative assets:
Interest rate derivatives – floors
$— $374 $— $374 
Interest rate derivatives – caps
— 648 — 648 
Total$— $1,022 $— $1,022 
(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.
Schedule 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 September 30,
20252024
Assets
Derivative assets:
Interest rate derivatives – floors
$(283)$— 
Interest rate derivatives – caps
(945)(5,002)
Total$(1,228)$(5,002)
Liabilities
Derivative liabilities:
Embedded debt derivative$— $(1,200)
Net$(1,228)$(6,202)
Total combined
Interest rate derivatives – floors
$(283)$— 
Interest rate derivatives – caps
(1,255)(12,259)
Embedded debt derivative— (1,200)
Unrealized gain (loss) on derivatives(1,538)
(1)
(13,459)
(1)
Realized gain (loss) on interest rate caps310 
(1) (2)
7,257 
(1) (2)
Net$(1,228)$(6,202)
____________________________________
(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
Nine Months Ended September 30,
20252024
Assets
Derivative assets:
Interest rate derivatives – floors
$(60)$— 
Interest rate derivatives – caps
(3,843)(1,380)
Total$(3,903)$(1,380)
Liabilities
Derivative liabilities:
Embedded debt derivative$(901)$1,296 
Net$(4,804)$(84)
Total combined
Interest rate derivatives – floors
$(60)$— 
Interest rate derivatives – caps
(4,949)(24,709)
Embedded debt derivative(901)1,296 
Unrealized gain (loss) on derivatives(5,910)
(1)
(23,413)
(1)
Realized gain (loss) on interest rate caps1,106 
(1) (2)
23,329 
(1) (2)
Net$(4,804)$(84)
____________________________________
(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.