We may be exposed to interest rate changes primarily as a result of maintaining floating rate borrowings under our revolving credit facility and term loan, assumption of long-term debt in connection with our acquisitions, and upon refinancing of existing debt. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve these objectives, we seek to borrow primarily at fixed rates or variable rates with the lowest margins available and, in some cases, with the ability to convert variable rates to fixed rates. With respect to variable rate financing, we will assess interest rate risk by identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company estimates the fair value of its fixed rate debt by discounting the future cash flows of each instrument at estimated market rates. Rates take into consideration general market conditions, maturity and fair value of the underlying collateral. The estimated fair value of the Company’s fixed rate debt at June 30, 2026 and December 31, 2025 was $152.1 million and $154.0 million, respectively. At June 30, 2026, our consolidated debt was comprised of floating and fixed interest rate debt. The fair value of our fixed rate debt indicates the estimated principal amount of debt having the same debt service requirements that could have been borrowed at the date presented, at then current market interest rates. The following table provides information about the maturities of our financial instruments as of June 30, 2026 that are sensitive to changes in interest rates (dollars in thousands): Total/ Weighted 2026 2027 2028 2029 2030 Thereafter Average Fair Value Floating rate: Debt — — — $ 275,000 — — $ 275,000 $ 275,000 Average interest rate — — — 5.12 % — — 5.12 % Fixed rate: Debt — — $ 24,590 $ 23,681 $ 410 $ 94,544 $ 143,225 $ 152,051 Average interest rate — — 7.61 % 7.29 % 7.42 % 7.12 % 7.23 % As of June 30, 2026, we estimate that a hypothetical 100 basis points increase in SOFR would result in additional interest of approximately $2.8 million annually. This assumes that the amount of floating rate debt outstanding on our revolving credit facility and unsecured term loan remains $275.0 million, the total balance as of June 30, 2026.