Company: NSA-PB
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001628280-25-022674
Chunk: 34

Company: National Storage Affiliates Trust
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1
Chunk 34
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, for payroll and related costs reimbursable to these former PROs. Such costs are included in property operating expenses in the accompanying condensed consolidated statements of operations.

11. COMMITMENTS AND CONTINGENCIES

Legal Proceedings 

The Company is subject to litigation, claims, and assessments that may arise in the ordinary course of its business activities. Such matters include contractual matters, employment related issues, and regulatory proceedings. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on the Company's financial position, results of operations, or liquidity. 

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12. FAIR VALUE MEASUREMENTS 

Recurring Fair Value MeasurementsThe Company sometimes limits its exposure to interest rate fluctuations by entering into interest rate swap agreements. The interest rate swap agreements moderate the Company's exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The Company does not use derivatives for trading or speculative purposes. The Company measures its interest rate swap derivatives at fair value on a recurring basis. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings.Information regarding the Company's interest rate swaps measured at fair value, which are classified within Level 2 of the GAAP fair value hierarchy, is presented below (dollars in thousands):Fair ValueNumber of ContractsNotional AmountOther Assets, netInterest Rate Swap LiabilitiesAs of March 31, 2025Interest Rate Swaps10$860,000 $12,249 $1,196 As of December 31, 2024Interest Rate Swaps12$1,085,000 $22,596 $471 The following table presents the effect of our derivative instruments on our condensed consolidated financial statements (dollars in thousands):Fair value at December 31, 2023$26,160 (Gains) and losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive income (loss)(9,355)Unrealized gains and realized (losses) on interest rate swaps and forward starting swaps included in accumulated other comprehensive income (loss)20,413 Fair value at March 31, 2024$37,218 Fair value at December 31, 2024$22,125 (Gains) and losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive income