Market Risk We are exposed to various market risks, including changes in interest rates. Market risk is the potential loss arising from adverse changes in market rates and prices, such as interest rates. 72 Interest Rate Risk We may periodically enter into certain interest rate protection agreements, including interest rate swap agreements to effectively convert existing floating rate debt to a fixed rate basis. We do not enter into derivatives or other financial instruments for trading or speculative purposes. As of June 30, 2026 we had interest rate swap agreements in effect to fix the interest rates on consolidated debt with aggregate notional amounts totaling $461.7 million. In addition, our unconsolidated joint venture in Galveston, Texas has a $60.0 million interest rate swap agreement in place. See Note 7 to the condensed consolidated financial statements for additional details related to our outstanding consolidated derivative instruments. As of June 30, 2026, none of our outstanding consolidated debt, after taking into account interest rate protection agreements in place on our variable debt, had variable interest rates and therefore was not directly subject to market fluctuations. The interest rate spreads associated with our unsecured lines of credit and our unsecured term loans are based on our three investment-grade credit ratings. As of June 30, 2026, we had no outstanding balances on our unsecured lines of credit. Upgrades to our credit ratings could reduce our interest expense. If our credit ratings downgrade, our interest expense could increase, depending upon the level of downgrade. The information presented herein is merely an estimate and has limited predictive value. As a result, the ultimate effect of interest rate fluctuations on our operating results will depend on the interest rate exposures that arise during the period, our hedging strategies at that time and future changes in the level of interest rates. The estimated fair value and recorded value of our debt consisting of senior, unsecured notes, unsecured term loans, secured mortgages and unsecured lines of credit were as follows (in thousands): June 30, 2026 December 31, 2025 Fair value of debt $ 1,834,481 $ 1,557,810 Recorded value of debt $ 1,860,963 $ 1,596,821 A 100 basis point increase from prevailing interest rates at June 30, 2026 and December 31, 2025 would result in a decrease in fair value of total consolidated debt of approximately $36.5 million and $30.2 million, respectively. Refer to Note 8 to the condensed consolidated financial statements for a description of our methodology in calculating the estimated fair value of debt. Considerable judgment is necessary to develop estimated fair values of financial instruments. Accordingly, the estimates presented herein are not necessarily indicative of the amounts we could realize on the disposition of the financial instruments. Foreign Currency Risk We are also exposed to foreign currency risk on investments in centers that are located in Canada. Our currency exposure is concentrated in the Canadian Dollar. To mitigate some of the risk related to changes in foreign currency, cash flows received from our Canadian joint ventures are either reinvested to fund ongoing Canadian development activities, if applicable, or converted to U.S. dollars and utilized to repay amounts outstanding under our unsecured lines of credit, if any. Accordingly, cash held in Canadian Dollars at any point in time is insignificant. We generally do not hedge currency translation exposures.