In the normal course of business, our operations are exposed to market risks, including the effect of changes in foreign currency exchange rates and interest rates. We may enter into derivative financial instruments to offset these underlying market risks. There have been no significant changes in our policy and strategy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities in the Consolidated Balance Sheets (in thousands):


	September 30, 2026				December 31, 2025
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	1,037	$	-	$	394
British pound sterling		1,923		7,623		164		11,688
Canadian dollar		8,344		5		5,680		214
Euro		5,846		2,418		1,660		17,571
Japanese yen		44,248		-		54,147		22
Swedish krona		503		1,435		198		5,352
Options
Mexican peso		1,623		-		14,733		-

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		9,247		-		841		4,279
Canadian dollar		-		-		1,866		968

Interest rate contracts
Cash flow hedges
Euro		14,600		-		-		-
Japanese yen		2,086		-		-		-
U.S. dollar		-		-		1,480		-
Total fair value of derivatives	$	88,420	$	12,518	$	80,769	$	40,488

The following table summarizes the activity of our undesignated foreign currency contracts for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):


	2026																		2025
	CAD			EUR			GBP			JPY			Other			Total			CAD			EUR			GBP			JPY			Other			Total
Notional amounts at January 1 ($)		296			587			385			335			(202	)		1,401			254			526			386			312			(27	)		1,451
New contracts ($)		9			21			254			12			31			327			111			186			100			68			18			483
Matured, expired or settled contracts ($)		(85	)		(132	)		(81	)		(62	)		116			(244	)		(49	)		(98	)		(66	)		(59	)		(19	)		(291	)
Notional amounts at September 30 ($)		220			476			558			285			(55	)		1,484			316			614			420			321			(28	)		1,643

Weighted average forward rate at September 30		1.33			1.18			1.31			126.65									1.33			1.16			1.29			123.15
Active contracts at September 30		88			109			130			92									120			127			108			93

Changes in the fair value of derivatives that are designated as net investment hedges ("NIHs") of our foreign operations and cash flow hedges ("CFHs") are recorded in Accumulated Other Comprehensive Income (Loss) (“AOCI/L”) in the Consolidated Balance Sheets and reflected within the AOCI/L table below.

The following table summarizes the activity of our foreign currency contracts designated as NIHs for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):


	2026									2025
	CAD			GBP			Total			CAD			GBP			Total
Notional amounts at January 1 ($)		200			683			883			163			432			595
New contracts ($)		100			776			876			200			549			749
Matured, expired or settled contracts ($)		(300	)		(773	)		(1,073	)		(163	)		(305	)		(468	)
Notional amounts at September 30 ($)		-			686			686			200			676			876

Weighted average forward rate at September 30		-			1.35						1.36			1.33
Active contracts at September 30		-			6						2			6

The following table summarizes the activity of our interest rate contracts designated as CFHs for the nine months ended September 30 (in millions):


	2026														2025
	CAD			EUR			JPY		USD			Total			CAD			EUR			USD			Total
Notional amounts at January 1 ($)		-			-			-		425			425			-			-			280			280
New contracts ($)		254			418			285		725			1,682			139			543			1,250			1,932
Matured, expired or settled contracts ($)		(254	)		(90	)		-		(1,150	)		(1,494	)		(139	)		(543	)		(1,155	)		(1,837	)
Notional amounts at September 30 ($)		-			328			285		-			613			-			-			375			375

The change in AOCI/L in the Consolidated Statements of Equity during the periods presented was due to the following: (i) the currency translation adjustments ("CTA") that we recognize due to the translation of the financial statements of our consolidated subsidiaries, whose functional currency is not the U.S. dollar, into U.S. dollars; and (ii) the change in the fair value of the effective portion of our derivative financial instruments that have been designated as NIHs and CFHs and the translation of the hedged portion of our debt.

The following tables present these changes in AOCI/L (in thousands):

Three Months Ended September 30, 2026 and 2025


	Unrealized gains (losses) on CFHs (1)			Our share of derivatives from unconsolidated entities		Derivative NIHs			Debt designated as nonderivative NIHs (2)			CTA			Total AOCI/L
Balance at July 1, 2026	$	(7,290	)	$	21,281	$	319,712		$	235,523		$	(966,943	)	$	(397,717	)
Other comprehensive income (loss), net		17,623			2,710		(233	)		(18,267	)		(16,789	)		(14,956	)
Balance at September 30, 2026	$	10,333		$	23,991	$	319,479		$	217,256		$	(983,732	)	$	(412,673	)


	Unrealized gains (losses) on CFHs			Our share of derivatives from unconsolidated entities		Derivative NIHs		Debt designated as nonderivative NIHs (2)		CTA			Total AOCI/L
Balance at July 1, 2025	$	(10,379	)	$	12,806	$	295,707	$	99,385	$	(1,163,026	)	$	(765,507	)
Other comprehensive income (loss), net		848			2,735		17,627		53,361		(45,164	)		29,407
Balance at September 30, 2025	$	(9,531	)	$	15,541	$	313,334	$	152,746	$	(1,208,190	)	$	(736,100	)

Nine Months Ended September 30, 2026 and 2025


	Unrealized gains (losses) on CFHs (1)			Our share of derivatives from unconsolidated entities		Derivative NIHs		Debt designated as nonderivative NIHs (2)		CTA			Total AOCI/L
Balance at January 1, 2026	$	(9,332	)	$	18,532	$	310,320	$	106,834	$	(1,102,630	)	$	(676,276	)
Other comprehensive income (loss), net		19,665			5,459		9,159		110,422		118,898			263,603
Balance at September 30, 2026	$	10,333		$	23,991	$	319,479	$	217,256	$	(983,732	)	$	(412,673	)


	Unrealized gains (losses) on CFHs			Our share of derivatives from unconsolidated entities		Derivative NIHs			Debt designated as nonderivative NIHs (2)			CTA			Total AOCI/L
Balance at January 1, 2025	$	(11,659	)	$	12,652	$	341,852		$	327,897		$	(790,957	)	$	(120,215	)
Other comprehensive income (loss), net		2,128			2,889		(28,518	)		(175,151	)		(417,233	)		(615,885	)
Balance at September 30, 2025	$	(9,531	)	$	15,541	$	313,334		$	152,746		$	(1,208,190	)	$	(736,100	)

(1)

We estimate that less than $1 million of expense will be reclassified to Interest Expense in the Consolidated Statements of Income over the next twelve months from September 30, 2026, due to the amortization of settled derivatives designated as cash flow hedges.

(2)

Reclassification of amounts out of AOCI/L due to the remeasurement of the unhedged portion of our foreign denominated debt and accrued interest is included within other comprehensive income (loss), net.

There have been no significant changes in our policy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

At September 30, 2026 and December 31, 2025, other than the derivatives discussed previously, we had no significant financial assets or financial liabilities that were measured at fair value on a recurring basis in the Consolidated Financial Statements. All of our derivatives held at September 30, 2026 and December 31, 2025, were classified as Level 2 of the fair value hierarchy.

Acquired properties, certain assets we expect to sell or contribute and assets subject to impairment charges are significant nonfinancial assets that met the criteria to be measured at fair value on a nonrecurring basis. At September 30, 2026 and December 31, 2025, we estimated the fair value of our properties using Level 2 or Level 3 inputs from the fair value hierarchy. See more information on our acquired properties in Note 2 and assets held for sale or contribution in Note 4.

At September 30, 2026 and December 31, 2025, the carrying amounts of certain financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses were representative of their fair values.

The differences in the fair value of our debt from the carrying value in the table below were the result of differences in interest rates or borrowing spreads that were available to us at September 30, 2026 and December 31, 2025, as compared with those in effect when the debt was issued or assumed, including lower borrowing spreads due to our credit ratings. See Note 5 for more information on our debt activity.

The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):


	September 30, 2026				December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit facilities and commercial paper	$	785,686	$	785,686	$	44,679	$	44,679
Senior notes		34,002,443		30,540,954		32,887,971		30,950,062
Term loans and unsecured other		1,821,219		1,750,061		1,908,723		1,862,065
Secured mortgage		223,134		204,327		195,700		185,965
Total	$	36,832,482	$	33,281,028	$	35,037,073	$	33,042,771