Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of the notional and fair value of derivative financial instruments

The following table summarizes certain terms of the Company’s derivative contracts. The Company reports derivative assets in Other assets, net and derivative liabilities in Accounts payable and other liabilities.

							Fair Value Asset (Liability)
thousands	Notional Amount		Fixed Interest Rate (a)		Effective Date	Maturity Date	March 31, 2023		December 31, 2022
Derivative instruments not designated as hedging instruments: (b)
Interest rate cap	$	285,000	2.00	%	3/12/2021	9/15/2023	$	3,826	$	5,748
Interest rate cap	83,200		2.00	%	3/12/2021	9/15/2023	1,117		1,677
Interest rate cap	75,000		2.50	%	10/12/2021	9/29/2025	2,853		3,791
Interest rate cap	59,500		2.50	%	10/12/2021	9/29/2025	2,263		3,007
Derivative instruments designated as hedging instruments:
Interest rate swap	$	615,000	2.96	%	9/21/2018	9/18/2023	$	5,601	$	8,262
Interest rate swap	200,000		3.69	%	1/3/2023	1/1/2027	(1,344)		978
Interest rate cap	127,000		5.50	%	11/10/2022	11/7/2024	369		378
Interest rate cap	75,000		5.00	%	12/22/2022	12/21/2025	526		655
Interest rate swap	40,800		1.68	%	3/1/2022	2/18/2027	2,696		3,321
Interest rate swap	35,188		4.89	%	11/1/2019	1/1/2032	2,148		3,043
Total fair value derivative assets							$	21,399	$	30,860
Total fair value derivative liabilities							(1,344)		—
Total fair value derivative asset (liability), net							$	20,055	$	30,860

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

(b)Interest income related to these contracts was $4.2 million for the three months ended March 31, 2023, and interest expense was $5.4 million for the three months ended March 31, 2022.

Summary of effect of derivative financial instruments on the condensed consolidated statements of operations

The tables below present the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022:

	Amount of Gain (Loss) Recognized in AOCI on Derivatives
Derivatives in Cash Flow Hedging Relationships	Three Months Ended March 31,
thousands	2023		2022
Interest rate derivatives	$	(2,651)	$	11,742

Location of Gain (Loss) Reclassified from AOCI into Statements of Operations	Amount of Gain (Loss) Reclassified from AOCI into Statements of Operations
	Three Months Ended March 31,
thousands	2023		2022
Interest expense	$	2,679	$	(3,335)