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Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 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 AmountFixed Interest Rate (a)Effective DateMaturity DateJune 30, 2023December 31, 2022
Derivative instruments not designated as hedging instruments: (b)
Interest rate cap$285,000 2.00 %3/12/20219/15/2023$1,980 $5,748 
Interest rate cap83,200 2.00 %3/12/20219/15/2023578 1,677 
Interest rate cap75,000 2.50 %10/12/20219/29/20253,609 3,791 
Interest rate cap59,500 2.50 %10/12/20219/29/20252,863 3,007 
Interest rate collar368 
2.00% - 4.50%
6/1/20236/1/20251,092 — 
Interest rate collar23,126 
2.00% - 4.50%
6/1/20236/1/20251,207 — 
Derivative instruments designated as hedging instruments:
Interest rate swap$615,000 2.98 %9/21/20189/18/2023$3,130 $8,262 
Interest rate swap200,000 3.69 %1/3/20231/1/20272,980 978 
Interest rate cap127,000 5.50 %11/10/202211/7/2024448 378 
Interest rate cap75,000 5.00 %12/22/202212/21/2025799 655 
Interest rate swap40,800 1.68 %3/1/20222/18/20273,405 3,321 
Interest rate swap35,081 4.89 %11/1/20191/1/20322,996 3,043 
Total fair value derivative assets$25,087 $30,860 
(a)These rates represent the swap rate and cap strike rate on HHC’s interest rate swaps, caps, and collars.
(b)Interest income related to these contracts was $3.3 million for the three months ended June 30, 2023, and $2.1 million for the six months ended June 30, 2023, and interest income was $2.8 million for the three months ended June 30, 2022, and $8.2 million for the six months ended June 30, 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 and six months ended June 30, 2023 and 2022:
Amount of Gain (Loss) Recognized in AOCI on Derivatives
Derivatives in Cash Flow Hedging RelationshipsThree Months Ended June 30,Six Months Ended June 30,
thousands2023202220232022
Interest rate derivatives$6,286 $5,819 $3,635 $17,561 
 
Location of Gain (Loss) Reclassified from AOCI into Statements of OperationsAmount of Gain (Loss) Reclassified from AOCI into
Statements of Operations
Three Months Ended June 30,Six Months Ended June 30,
thousands2023202220232022
Interest expense$3,538 $(2,646)$6,217 $(5,981)