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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments
 
During the three years ended December 31, 2019, the Company had the following LIBOR interest rate caps, which are not designated as cash flow hedges for accounting purposes ($ in thousands):
Origination Date
 
Expiration Date
 
Notional Amount
 
 Strike Rate
 
Premium Paid
10/26/2015
 
10/15/2017
 
$
75,000

 
1.25
%
 
$
137

2/25/2016
 
3/1/2018
 
75,000

 
1.50
%
 
57

6/17/2016
 
6/17/2018
 
70,000

 
1.00
%
 
150

2/7/2017
 
3/1/2019
 
50,000

 
1.50
%
 
187

6/23/2017
 
7/1/2019
 
50,000

 
1.50
%
 
154

9/18/2017
 
10/1/2019
 
50,000

 
1.50
%
 
199

11/28/2017
 
12/1/2019
 
50,000

 
1.50
%
 
359

3/7/2018
 
4/1/2020
 
50,000

 
2.25
%
 
310

7/16/2018
 
8/1/2020
 
50,000

 
2.50
%
 
319

12/11/2018
 
1/1/2021
 
50,000

 
2.75
%
 
210

5/15/2019
 
6/1/2022
 
100,000

 
2.50
%
 
288

 
 
 
 
 
 
 
 
$
2,370



As of December 31, 2019, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
Related Debt
 
Notional Amount
 
 
Index
 
Swap Fixed Rate
 
Debt effective rate
 
Effective Date
 
Expiration Date
Senior unsecured term loan
 
$
50,000

 
 
1-month LIBOR
 
2.00
%
 
3.45
%
 
3/1/2016
 
2/20/2020
Senior unsecured term loan
 
50,000

 
 
1-month LIBOR
 
2.78
%
 
4.23
%
 
5/1/2018
 
5/1/2023
John Hopkins Village
 
51,800

(a) 
 
1-month LIBOR
 
2.94
%
 
4.19
%
 
8/7/2018
 
8/7/2025
Senior unsecured term loan
 
10,500

(a)(b) 
 
1-month LIBOR
 
3.02
%
 
4.47
%
 
10/12/2018
 
10/12/2023
249 Central Park Retail, South Retail, and Fountain Plaza Retail
 
34,342

(a) 
 
1-month LIBOR
 
2.25
%
 
3.85
%
 
4/1/2019
 
8/10/2023
Senior unsecured term loan
 
50,000

(a) 
 
1-month LIBOR
 
2.26
%
 
3.71
%
 
4/1/2019
 
10/26/2022
Total
 
$
246,642

 
 
 
 
 
 
 
 
 
 
 
________________________________________
(a) Designated as a cash flow hedge.
(b) Prior to August 15, 2019, this swap was used as a hedge for the cash flows for the loan secured by Lightfoot Marketplace.


For the interest rate swaps designated as cash flow hedges, realized losses are reclassified out of accumulated other comprehensive loss to interest expense in the Consolidated Statements of Comprehensive Income due to payments made to the swap counterparty. During the next 12 months, the Company anticipates reclassifying approximately $1.4 million of net hedging losses from accumulated other comprehensive loss into earnings to offset the variability of the hedged items during this period.

The Company’s derivatives comprised the following as of December 31, 2019 and 2018 (in thousands):
 
 
 
December 31, 2019
 
December 31, 2018
 
 
 
 
Fair Value
 
 
 
Fair Value
 
 
Notional Amount
 
Asset
 
Liability
 
Notional Amount
 
Asset
 
Liability
Derivatives not designated as accounting hedges
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
100,000

 
$
—

 
$
(1,992
)
 
$
100,000

 
$
303

 
$
(749
)
Interest rate caps
 
250,000

 
25

 
—

 
350,000

 
1,790

 
—

Total derivatives not designated as accounting hedges
 
350,000

 
25

 
(1,992
)
 
450,000

 
2,093

 
(749
)
Derivatives designated as accounting hedges
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
146,642

 
—

 
(5,728
)
 
63,208

 
—

 
(1,725
)
Total derivatives
 
$
496,642

 
$
25

 
$
(7,720
)
 
$
513,208

 
$
2,093

 
$
(2,474
)

 
The changes in the fair value of the Company’s derivatives during the years ended December 31, 2019, 2018, and 2017 was as follows (in thousands):
 
Years Ended December 31, 
 
2019
 
2018
 
2017
Interest rate swaps
$
(6,050
)
 
$
(2,281
)
 
$
770

Interest rate caps
(2,053
)
 
(564
)
 
357

Total change in fair value of interest rate derivatives
$
(8,103
)
 
$
(2,845
)
 
$
1,127

Comprehensive income statement presentation:
 

 
 

 
 

Change in fair value of interest rate derivatives
$
(3,599
)
 
$
(951
)
 
$
1,127

Unrealized cash flow hedge losses
(4,504
)
 
(1,894
)
 
—

Total change in fair value of interest rate derivatives
$
(8,103
)
 
$
(2,845
)
 
$
1,127



Subsequent to December 31, 2019

On January 10, 2020, the Company entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.75% for a premium of $0.1 million. The interest rate cap agreement will expire on February 1, 2022.

On January 28, 2020, the Company entered into an additional LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.75% for a premium of $0.1 million. The interest rate cap agreement will expire on February 1, 2022.