Fair Value Measurements
Recurring Measurements
The following financial instruments are remeasured at fair value on a recurring basis:
Fair Value Measurements as of
December 31, 2025December 31, 2024
Cash Flow Hedges: (a) (b)
Level 1Level 2 (c)Level 3Level 1Level 2 (c)Level 3
Derivative interest rate swap assets$— $5,196 $— $— $14,426 $— 
Derivative interest rate swap liabilities$— $(435)$— $— $— $— 
(a)During the twelve months subsequent to December 31, 2025, an estimated $4,267 of derivative interest rate balances recognized in accumulated comprehensive income will be reclassified into earnings.
(b)As of December 31, 2025 and 2024, the Company determined that the credit valuation adjustments associated with nonperformance risk are not significant to the overall valuation of its derivatives. As a result, the Company's derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy.
(c)Derivative assets or liabilities are recognized as a part of deferred costs and other assets, net or other liabilities, respectively.
Level 1
At December 31, 2025 and 2024, the Company had no Level 1 recurring fair value measurements.
Level 2
To calculate the fair value of the derivative interest rate instruments, the Company primarily uses quoted prices for similar contracts and inputs based on data that are observed in the forward yield curve that is widely observable in the marketplace. The Company also incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements that utilize Level 3 inputs, such as estimates of current credit spreads.
Level 3
At December 31, 2025 and 2024, the Company had no Level 3 recurring fair value measurements.
Non-Recurring Measurements
Investment Properties
During the year ended December 31, 2025, the Company had no Level 3 nonrecurring fair value measurements.
During the year ended December 31, 2024, the Company recorded an impairment of real estate assets of $3,854 on one retail property. The property was sold on October 31, 2024 for $57,800, resulting in a loss on sale of $614, which was primarily related to closing costs.
Financial Instruments Not Measured at Fair Value
The following table summarizes the estimated fair value of financial instruments presented at carrying values in the Company's consolidated financial statements as of December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Carrying ValueEstimated 
Fair Value
Market
Interest Rate
Carrying ValueEstimated 
Fair Value
Market
Interest Rate
Mortgages payable$117,605 $111,945 6.09 %$93,380 $87,576 6.64 %
Senior notes250,000 248,320 5.24 %250,000 236,480 6.23 %
Term loans400,000 398,701 4.64 %400,000 400,170 5.29 %
Revolving line of credit55,000 54,957 4.37 %— — N/A
The market interest rates used to estimate the fair value of the Company's mortgages payable, senior notes, term loan, and Revolving Credit Facility reflect the terms currently available on similar borrowing terms to borrowers with credit profiles similar to that of the Company. Debt instrument valuations within Level 2 of the fair value hierarchy.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 14, 2024
2022Feb 21, 2023
2021Feb 15, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Mar 7, 2019
2017Mar 7, 2018
2016Mar 17, 2017
2015Mar 18, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.