We have exposure to fluctuations in interest rates, which are sensitive to many factors that are beyond our control. Our exposure to a change in interest rates is summarized in the table below. 2026 2025 (Amounts in thousands, except per share amounts) June 30, Balance Weighted Average Interest Rate Effect of 1% Change in Base Rates December 31, Balance Weighted Average Interest Rate Variable Rate $ 175,000 5.62% $ 1,750 $ 175,000 5.72% Fixed Rate(1) 665,522 4.58% — 661,691 4.58% $ 840,522 4.79% $ 1,750 $ 836,691 4.82% Total effect on diluted earnings per share $ 0.34 (1)Includes the 731 Lexington Avenue retail condominium C-Note loan balance of $171,522 and $167,691 as of June 30, 2026 and December 31, 2025, respectively, including PIK interest of $4,022 and $191, respectively. We have an interest rate cap relating to the mortgage loan on the Rego Park shopping center with a notional amount of $175,000,000 that caps SOFR at 4.50% through December 2026. Fair Value of Debt The fair value of our consolidated debt is calculated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit ratings, which are provided by a third-party specialist. As of June 30, 2026 and December 31, 2025, the estimated fair value of our consolidated debt was $788,814,000 and $783,004,000, respectively. Our fair value estimates, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments.