Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2025 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Interest Rate Cap Agreements |
The following table provides a summary of the Company’s interest rate cap agreements:
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| Financial instrument |
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Number of instruments |
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In effect as of September 30, 2025 |
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Current notional amount of instruments in effect |
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Annuitized premium of instruments in effect |
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Cap rate in effect for all agreements at September 30, 2025 |
| Interest rate caps |
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4 |
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3 |
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$ |
625,000 |
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$ |
35,285 |
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1.00 |
% |
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| Fair Values of Derivative Instruments Held |
The fair values of derivative instruments held as of September 30, 2025 and December 31, 2024, respectively, are shown below:
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Balance sheet location |
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September 30,
2025 |
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December 31,
2024 |
| Derivative assets |
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| Derivatives designated as cash flow hedges: |
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| Interest rate caps |
Prepaid and other current assets |
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$ |
1,142 |
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$ |
6,532 |
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| Interest rate caps |
Other long-term assets |
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48 |
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5,968 |
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1,190 |
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12,500 |
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| Derivative not designated as hedging instrument: |
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| Interest rate caps |
Prepaid and other current assets |
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1,228 |
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— |
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| Interest rate caps |
Other long-term assets |
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92 |
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— |
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| Total derivative assets |
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$ |
2,510 |
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$ |
12,500 |
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| Derivative liabilities |
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| Derivatives designated as cash flow hedges: |
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| Interest rate caps |
Accrued liabilities |
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$ |
949 |
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$ |
235 |
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| Interest rate caps |
Other long-term liabilities |
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620 |
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475 |
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| Total derivative liabilities |
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$ |
1,569 |
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$ |
710 |
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| Effect of Derivative Instruments Designated as Cash Flow Hedges on AOCI |
The following tables show the effect of the Company’s derivative instruments designated as cash flow hedges on AOCI and the condensed consolidated statements of (loss) income for the three and nine months ended September 30, 2025 and 2024, respectively:
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Amount of gain (loss) recognized in OCI |
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Three months ended September 30, |
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Nine months ended
September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
| Interest rate caps |
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$ |
224 |
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$ |
(10,828) |
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$ |
(4,503) |
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$ |
2,209 |
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Amount of loss reclassified from AOCI |
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Three months ended September 30, |
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Nine months ended
September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
| Interest rate caps |
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$ |
(2,041) |
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$ |
(4,711) |
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$ |
(6,266) |
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$ |
(14,029) |
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Amount of loss reclassified into income |
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Three months ended September 30, |
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Nine months ended
September 30, |
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2025 |
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2024 |
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2025 |
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2024 |
| Interest rate caps |
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$ |
2,041 |
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$ |
4,711 |
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$ |
6,266 |
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$ |
14,029 |
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| Cash Flow Hedge Impact on Income Statement |
The following table shows the amounts in the line items presented in the condensed consolidated statements of (loss) income in which the effects of derivatives designated as cash flow hedges are recorded for the three and nine months ended September 30, 2025 and 2024, respectively:
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Three months ended
September 30, |
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Location and amount of gain (loss) recognized in income on cash flow hedging relationships |
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2025 |
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2024 |
| Interest rate caps |
Interest expense |
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$ |
(8,368) |
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$ |
(7,912) |
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Nine months ended
September 30, |
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2025 |
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2024 |
| Interest rate caps |
Interest expense |
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$ |
(24,802) |
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$ |
(27,068) |
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