DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of the derivative financial instruments

The following table summarizes certain terms of the Company’s derivative contracts:

				Fixed			Fair Value Asset (Liability)
			Notional	Interest	Effective	Maturity	December 31,		December 31,
thousands		Balance Sheet Location	Amount	Rate (a)	Date	Date	2020		2019
Derivative instruments not designated as hedging instruments:
Interest rate cap	(b)	Prepaid expenses and other assets, net	75,000	5.00%	8/31/2020	10/17/2022	$	—	$	—
Total fair value derivative assets							—		—
Derivative instruments designated as hedging instruments:
Interest rate collar	(c)	Accounts payable and accrued expenses	193,967	2.00% - 3.00%	5/1/2019	5/1/2020	—		(182)
Interest rate collar	(d)	Accounts payable and accrued expenses	354,217	2.25% - 3.25%	5/1/2020	5/1/2021	—		(2,074)
Interest rate collar	(d)	Accounts payable and accrued expenses	381,404	2.75% - 3.50%	5/1/2021	4/30/2022	—		(4,578)
Interest rate swap	(e)	Accounts payable and accrued expenses	615,000	2.96%	9/21/2018	9/18/2023	(46,613)		(31,187)
Interest rate swap	(f)	Accounts payable and accrued expenses	34,918	4.89%	11/1/2019	1/1/2032	(5,307)		(2,114)
Total fair value derivative liabilities							(51,920)		(40,135)
Total fair value derivatives, net							$	(51,920)	$	(40,135)

(a)These rates represent the strike rate on HHC’s interest swaps, caps and collars.

(b)In the third quarter of 2020, the Company executed an agreement to extend the maturing position of this cap. Interest income included in the Consolidated Statements of Operations for the years ended December 31, 2020 and 2019, related to this contract was not meaningful.

(c)On May 1, 2020, the $194.0 million interest rate collar matured as scheduled.

(d)As of September 30, 2020, the Company deconsolidated 110 North Wacker including the associated liabilities related to its interest rate collars. Refer to Note 3 - Real Estate and Other Affiliates for additional information.

(e)Concurrent with the funding of the new $615.0 million Term Loan in 2018, the Company entered into this interest rate swap which is designated as a cash flow hedge.

(f)Concurrent with the closing of the $35.5 million construction loan for 8770 New Trails in 2019, the Company entered into this interest rate swap which is designated as a cash flow hedge.

Summary of effect of derivative financial instruments on the Consolidated Statements of Operations

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the years ended December 31:

	Amount of Gain (Loss) Recognized in AOCI on Derivatives
thousands	December 31,
Derivatives in Cash Flow Hedging Relationships	2020		2019		2018
Interest rate derivatives	$	(32,134)	$	(19,245)	$	2,090

	Amount of Gain (Loss) Reclassified from AOCI into Operations
thousands	December 31,
Location of Gain (Loss) Reclassified from AOCI into Operations	2020		2019		2018
Interest expense	$	(9,064)	$	1,939	$	2,153

	Total Interest Expense Presented in the Results of Operations in which the Effects of Cash Flow Hedges are Recorded
thousands	December 31,
Interest Expense Presented in Results of Operations	2020		2019		2018
Interest expense	$	132,257	$	105,374	$	82,028