Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of LIBOR Interest Rate Caps

As of December 31, 2023, the Company had the following interest rate caps ($ in thousands):

Effective Date	Maturity Date	Notional Amount			Strike Rate		Premium Paid
7/5/2022	1/1/2024	35,100		(a)	1.00%-3.00% (SOFR)	(b)	120		(c)
9/1/2022	9/1/2024	63,169		(a)(d)	1.00%-3.00% (SOFR)	(b)	1,370
		$	98,269				$	1,490

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(a) Designated as a cash flow hedge.

(b) The Company purchased interest rate caps at 1.00% and sold interest rate caps at 3.00%, resulting in interest rate cap corridors of 1.00% and 3.00%. The intended goal of these corridors is to provide a level of protection from the effect of rising interest rates and reduce the all-in cost of the derivative instrument.

(c) This amount represents the sum of the premiums paid on the original instruments. The caps were blended and extended during the year ended December 31, 2022.

(d) Represents the notional amount as of December 31, 2023. The notional amount is scheduled to increase over the term of the corridor in accordance with projected borrowings on the associated loan. The maximum notional amount that will eventually be in effect is $73.6 million.

As of December 31, 2023, 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
Floating rate pool of loans	$	50,000	(a)(b)	1-month SOFR		3.40	%	4.91	%	7/5/2023	1/1/2024
Constellation Energy Building	175,000		(a)(c)	1-month SOFR		1.84	%	3.46	%	4/3/2023	2/1/2024
Floating rate pool of loans	200,000		(a)(d)	1-month SOFR		3.39	%	4.90	%	7/1/2023	3/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(e)	0.42	%	1.82	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	1-month SOFR	(e)	0.33	%	1.73	%	4/1/2020	4/1/2024
Senior unsecured term loan	25,000		(a)	Daily SOFR	(e)	0.44	%	1.84	%	4/1/2020	4/1/2024
Harbor Point Parcel 3 senior construction loan	90,000		(f)	1-month SOFR		2.75	%	4.82	%	10/2/2023	10/1/2025
Floating rate pool of loans	330,000		(g)	1-month SOFR		2.75	%	4.26	%	10/1/2023	10/1/2025
Harbor Point Parcel 4 senior construction loan	100,000		(h)	1-month SOFR		2.75	%	5.12	%	11/1/2023	11/1/2025
Floating rate pool of loans	300,000		(i)	1-month SOFR		2.75	%	4.26	%	12/1/2023	12/1/2025
Revolving credit facility and TD unsecured term loan	100,000			Daily SOFR		3.20	%	4.70	%	5/19/2023	5/19/2026	(j)
Thames Street Wharf	67,894		(a)	Daily SOFR	(e)	0.93	%	2.33	%	9/30/2021	9/30/2026
M&T unsecured term loan	100,000		(a)	1-month SOFR		3.50	%	4.90	%	12/6/2022	12/6/2027
Senior unsecured term loan	100,000			1-month SOFR		3.43	%	4.83	%	12/13/2022	1/21/2028
Total	$	1,687,894

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(a) Designated as a cash flow hedge.

(b) On July 6, 2023, the Company terminated a SOFR corridor of 1.00%-3.00% with a notional amount of $50.0 million and entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(c) Effective April 4, 2023, the Company terminated its 4.00% BSBY interest rate cap with a notional amount of $175.0 million and its BSBY corridor of 1.00%-3.00% with a notional amount of $175.0 million and, effective April 3, 2023, entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(d) On July 5, 2023, the Company terminated a SOFR corridor of 1.00%-3.00% with a notional amount of $200.0 million and entered into this interest rate swap agreement. The Company paid a net zero premium for this transaction.

(e) Transitioned to SOFR during the year ended December 31, 2023.

(f) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 5. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate.

(g) The Company paid $13.3 million to reduce the swap fixed rate.

(h) This interest rate swap agreement reduces the Company's interest rate exposure on the $109.7 million senior construction loan secured by the Company's Harbor Point Parcel 4 equity method investment as described in Note 5. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.9 million to reduce the swap fixed rate.

(i) The Company paid $10.5 million to reduce the swap fixed rate.

(j) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter.

Schedule of Derivatives

The Company’s derivatives comprised the following as of December 31, 2023 and 2022 (in thousands):

	December 31, 2023						December 31, 2022
			Fair Value						Fair Value
	Notional Amount		Asset		Liability		Notional Amount		Asset		Liability
Derivatives not designated as accounting hedges
Interest rate swaps	$	1,020,000	$	20,761	$	—	$	250,000	$	2,201	$	—
Interest rate caps	—		—		—		289,479		2,102		—
Total derivatives not designated as accounting hedges	1,020,000		20,761		—		539,479		4,303		—
Derivatives designated as accounting hedges
Interest rate swaps	667,894		7,141		—		187,670		11,247		—
Interest rate caps	98,269		960		—		561,200		13,565		—
Total derivatives	$	1,786,163	$	28,862	$	—	$	1,288,349	$	29,115	$	—

Schedule of Changes in Fair Value of Derivatives

The unrealized changes in the fair value of the Company’s derivatives during the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):

	Years Ended December 31,
	2023		2022		2021
Interest rate swaps	$	(6,981)	$	16,210	$	4,775
Interest rate caps	(325)		12,841		1,222
Total unrealized change in fair value of interest rate derivatives	$	(7,306)	$	29,051	$	5,997
Comprehensive income statement presentation:
Change in fair value of derivatives and other(1)	$	(14,185)	$	8,886	$	2,319
Unrealized cash flow hedge gains	6,879		20,165		3,678
Total unrealized change in fair value of interest rate derivatives	$	(7,306)	$	29,051	$	5,997

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(1) Excludes $7.9 million of realized changes in the fair value of derivatives for the year-ended December 31, 2023.