Annual report [Section 13 and 15(d), not S-K Item 405]

DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)

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DEFERRED CHARGES AND OTHER ASSETS, NET (Tables)
12 Months Ended
Dec. 31, 2025
Other Assets [Abstract]  
Schedule Of Deferred Charges, Goodwill And Other Assets
(dollars in thousands) December 31,
2025
December 31,
2024
Deferred leasing costs $ 5,684  $ 4,765 
Deferred financing costs (a) 7,124  6,296 
Deferred charges 12,808  11,061 
Accumulated amortization (6,759) (4,558)
Deferred charges, net 6,049  6,503 
In-place lease values, related intangibles and other assets, net (b) 8,999  9,519 
Right of use assets (c) 4,079  5,145 
Prepaid expenses and other assets, net 21,461  27,309 
Total deferred charges and other assets, net $ 40,588  $ 48,476 
(a)This amount relates to the deferred financing costs associated with the revolving credit facility. Deferred financing costs related to all other loans are netted against the respective mortgage obligation for all periods presented. See Note 2: Significant Accounting Policies – Deferred Financing Costs.
(b)Includes the value of acquired above and below market lease intangibles in which the Company is the lessor which are recognized in rental revenue over the terms of the respective leases. The value of acquired in-place lease intangibles in which the Company is the lessor are amortized to
Depreciation and amortization expense over the remaining initial terms of the respective leases. The impact of amortizing the acquired above and below-market lease intangibles increased revenue by approximately $18 thousand, $30 thousand and $0.1 million, and the impact of the amortization of acquired in-place lease values is included in Depreciation and amortization expense and amounted to approximately $1.1 million, $0.5 million and $2.0 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(c)This amount has a corresponding liability of $5.7 million and $6.5 million as of December 31, 2025 and 2024, respectively, which is included in Accounts payable, accrued expense and other liabilities. See Note 12: Commitments and Contingencies – Office and Ground Lease Agreements for further details.
Schedule of Fair Value of the Derivative Financial Instruments
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of December 31, 2025 and 2024 (dollars in thousands):
  Fair Value  
Asset Derivatives designated
as hedging instruments
December 31,
2025
December 31,
2024
Balance sheet location
Interest rate caps designated as hedging instruments $ 196  $ 4,953  Deferred charges and other assets, net
Interest rate caps not designated as hedging instruments $ 110  $ 525  Deferred charges and other assets, net
Schedule of Cash Flow Hedging, Derivative Financial Instruments on the Income Statement
The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands):
Derivatives in Cash Flow Hedging Relationships
 Amount of Gain or (Loss) Recognized in OCI on Derivative (a)
Location of Gain or
(Loss) Reclassified
from Accumulated
OCI into Income
 Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (a) (b)
 Total Amount of Interest Expense presented in the Consolidated Statements of
Operations
Year Ended December 31, 2025 2024 2023 2025 2024 2023 2025 2024 2023
Interest rate caps $(951) $526 $1,184
Interest Expense
$(663) $2,967 $3,559 $(88,579) $(87,976) $(89,355)
(a)Amounts exclude net losses of $631 thousand, net gains of $632 thousand, and zero recognized on unconsolidated jointly owned investments for the years ended December 31, 2025, 2024 and 2023, respectively.
(b)The gain or loss reclassified from Accumulated OCI into Income is recorded in Interest Expense.