FINANCIAL RESULTS
Albanese Cormier Holdings, LLC and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Years ended December 31, 2025 and 2024
11.
Interest Rate Swap Derivative, continued In May 2022, the Company entered into an interest rate swap derivatives (the “Swap”) with a notional amount of $47,700,000 with a maturity date of May 2027. The Swap involves agreements to pay a fixed rate of 4.99% and receive a floating rate, calculated on the agreed-upon notional amount. The debt and amounts that the Company hedges are determined based on its current business plan, prevailing market conditions and the current shape of the yield curve. This swap is secured by property known as Novi Town Center. In May 2023, the Company entered into an interest rate swap derivatives (the “Swap”) with a notional amount of $100,000,000 with a maturity date of December 2026. The Swap involves agreements to pay a fixed rate of 5.55% and receive a floating rate, calculated on the agreed-upon notional amount. The debt and amounts that the Company hedges are determined based on its current business plan, prevailing market conditions and the current shape of the yield curve. This swap is secured by property included as collateral for the Wells Fargo Line of Credit. The Company’s objective in entering into these interest rate financial instruments is to mitigate its exposure to significant unplanned fluctuations in earnings caused by volatility in interest rates. The Swap results in either an asset or a liability and other comprehensive income or loss based on the shape of the yield curve and the remaining term of the agreement. Therefore, if the Swap is held until termination, no residual income or loss on settlement of the Swap would be incurred.
At December 31, 2025 and 2024, the fair value of the Swap was a $798,396 and $3,890,259 respectively. Other comprehensive income (loss) on the derivative at December 31, 2025 and 2024 was $(3,091,863) and $(91,333) respectively. For the years ended December 31, 2025 and 2024, the Company incurred net interest payments related to the Swap of $(1,991,407) and $(3,616,567) respectively. 12. Long - Term Debt Long-term debt consisted of the following: 2025 2024 Current Noncurrent Current Noncurrent
Note payable to a bank, bearing interest at 6.75% per year, payable in monthly installments of $11,761 (including interest) through May 2030. This loan does not have a prepayment penalty. This note was paid in full June 2025. Note payable to a bank, bearing interest at LIBOR rate plus 2.50% per year, payable in monthly installments of $60,000 (including interest) through September 2027, at which time the remaining balance is due. This note is collateralized by certain real estate in Fort Smith, Arkansas known as ACH Central Shopping Center with a net book value of $15,028,835. Note payable to a bank, bearing interest at 7.25% per year, payable in monthly installments of $4,814 (including interest) through July 2028, at which the remaining balance is due. This note does not have a prepayment penalty. This note is collateralized by certain real estate in Covington, Tennessee known as North Plaza Shopping Center with a net book value of $1,757,074.
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1,332,635
318,322
9,209,654
305,404
9,527,976
40,271
219,404
37,445
259,662
22
90
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