Company: PEB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001474098-25-000039
Chunk: 41

Company: Pebblebrook Hotel Trust
Filing Date: 2025-02-26
Form: 10-K
Item: Item 15
Chunk 41
---
 and is classified within Level 1 of the fair value hierarchy. The estimated fair value of the Company’s fixed rate debt (unsecured senior notes, convertible senior notes and the Estancia mortgage loan) as of December 31, 2024 and 2023 was $1.1 billion and $686.3 million, respectively. The fair value of the Company's variable rate debt approximates its carrying value.Future Minimum Principal PaymentsAs of December 31, 2024, the future minimum principal payments for the Company's debt, assuming all extension options available in the Company's debt agreements are exercised, are as follows (in thousands):2025$19,201 2026752,308 2027362,429 2028545,310 2029585,217 Total debt principle payments$2,264,465 Deferred financing costs, net(17,733)Total debt$2,246,732 Derivative and Hedging ActivitiesThe Company enters into interest rate swap agreements to hedge against interest rate fluctuations. All of the Company's interest rate swaps are designated as cash flow hedges. All unrealized gains and losses on these hedging instruments are reported in accumulated other comprehensive income (loss) and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.The Company's interest rate swaps at December 31, 2024 and 2023 consisted of the following, by maturity date (dollars in thousands):Aggregate Notional Value as of Hedge TypeInterest Rate Range(SOFR)MaturityDecember 31, 2024December 31, 2023Swap-cash flow 2.47% - 2.50%January 2024$— $300,000 Swap-cash flow 3.22% - 3.25%October 2025200,000 200,000 Swap-cash flow 1.33% - 1.36%February 2026290,000 290,000 Swap-cash flow 3.02% - 3.03%October 2026200,000 200,000 Swap-cash flow3.29%October 2027165,000 165,000 Total$855,000 $1,155,000 F-22

Table of Contents

The Company records all derivative instruments at fair value in the accompanying consolidated balance sheets. Fair values of interest rate swaps and caps are determined using the standard market