{"url_path":"/sec/cik-0000926660/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/926660/0001628280-26-034734-index.html","accession_number":"0001628280-26-034734","cik":"0000926660","ticker":null,"issuer_name":"Apartment Income REIT, L.P.","edgar_url":"https://www.sec.gov/Archives/edgar/data/926660/0001628280-26-034734-index.html","primary_entity_key":"0000926660","primary_entity_name":"Apartment Income REIT, L.P."},"word_count":416,"has_tables":true,"body_markdown":"ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nOur primary market risks are refunding risk, that is the availability of property debt or other cash sources to refund maturing property debt, and repricing risk, that is the possibility of increases in base interest rates and credit risk spreads. We use working capital to fund short-term uses, with long-term uses expected to be financed by cash from operating activities, proceeds from apartment community sales, and long-term debt. We use derivative financial instruments, principally interest rate swaps, interest rate caps, and treasury rate locks, to reduce our exposure to interest rate risk. We closely monitor the credit quality of the institutions with which we transact.\n\nAs of March 31, 2026, on a consolidated basis, we had $1.7 billion of non-recourse fixed-rate property debt and $4.1 billion of non-recourse variable-rate property debt outstanding. As of March 31, 2026, all outstanding variable-rate property debt was economically hedged by interest rate swaps and interest rate caps. These derivative instruments reduce or cap the entirety of our variable-rate exposure at a weighted-average rate of 6.9%. As of March 31, 2026, the capped rate on our interest rate caps is above the prevailing market rate.\n\nAfter consideration of all outstanding interest rate swaps and our interest rate caps, we estimate that a change in the floating rate of 100-basis points with constant credit risk spreads would increase net income (loss) by $6.6 million or ($4.5) million, respectively, on an annual basis.\n\nAs of March 31, 2026, we had $245.1 million of cash and cash equivalents and restricted cash, which may partially mitigate the effect of an increase in variable rates on our variable-rate debt discussed above. As a result, we estimate that a change in the floating rate of 100-basis points with constant credit risk spreads would increase or decrease interest income by $1.6 million on an annual basis.\n\nAfter consideration of the interest rate swaps, interest rate caps, and cash and cash equivalents and restricted cash described above, we estimate that a change in the floating rate of 100-basis points with constant credit risk spreads would increase net income (loss) by $5.0 million or ($2.8) million, respectively, on an annual basis.\n\n22\n\n[Table of Contents](#i95ac47bb6940421283faa0a22a4d4ae2_10)\n\nWe estimate the fair value of debt instruments as described in [Note 9](#i95ac47bb6940421283faa0a22a4d4ae2_73) to the condensed consolidated financial statements in [Item 1](#i95ac47bb6940421283faa0a22a4d4ae2_16). The estimated fair value of total indebtedness, including our non-recourse fixed-rate and variable-rate property debt was approximately $5.7 billion as of March 31, 2026."}