Company: BHR-PD
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001574085-25-000092
Chunk: 28

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 interest rate caps180 (1) (2)1,539 (1) (2)368 (1) (2)3,210 (1) (2)Realized gain (loss) on investment in securities(1,250)(3)— (1,250)(3)— Net$(1,235)$326 $(1,433)$1,258 ________(1)Reported in “realized and unrealized gain (loss) on derivatives” in our condensed consolidated statements of operations.(2)Represents settled and unsettled payments from counterparties on interest rate caps.(3)Reported in “other income (expense)” in our condensed consolidated statements of operations.

The amortized cost of the CMBS at June 30, 2025 and December 31, 2024, was $17.3 million and $42.3 million, respectively. The unrealized gain (loss) recognized as a change in other comprehensive income (loss) for the three and six months ended June 30, 2025 was $(260,000) and $599,000, respectively. During the three and six months ended June 30, 2025, the Company sold a portion of the CMBS with a par value of $25 million resulting in a realized loss of approximately $1.3 million included in “other income (expense)” on the condensed consolidated statements of operations. As a result of the sale, $68,000 of unrealized gain was reclassified to realized loss in the three and six months ended June 30, 2025. There was no unrealized gain (loss) recognized as a change in other comprehensive income (loss) for the three and six months ended June 30, 2024.

9. Summary of Fair Value of Financial Instruments

Determining the estimated fair values of certain financial instruments such as indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled.

17

BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):June 30, 2025December