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Derivative Financial Instruments
6 Months Ended
Jun. 30, 2019
Derivative Financial Instruments [Abstract]  
Derivative Financial Instruments
8. Derivative Financial Instruments
We record derivative financial instruments in our accompanying condensed consolidated balance sheets as either an asset or a liability measured at fair value. We did not have any derivative financial instruments as of December 31, 2018. The following table lists the derivative financial instruments held by us as of June 30, 2019, which are included in security deposits, prepaid rent and other liabilities in our accompanying condensed consolidated balance sheets:
Instrument
 
Notional Amount
 
Index
 
Interest Rate
 
Maturity Date
 
Fair Value
Swap
 
$
139,500,000

 
one month LIBOR
 
2.49%
 
11/19/21
 
$
2,783,000

Swap
 
58,800,000

 
one month LIBOR
 
2.49%
 
11/19/21
 
1,173,000

Swap
 
36,700,000

 
one month LIBOR
 
2.49%
 
11/19/21
 
731,000

Swap
 
15,000,000

 
one month LIBOR
 
2.53%
 
11/19/21
 
312,000

 
 
$
250,000,000

 
 
 
 
 
 
 
$
4,999,000


ASC Topic 815 permits special hedge accounting if certain requirements are met. Hedge accounting allows for gains and losses on derivatives designated as hedges to be offset by the change in value of the hedged item or items or to be deferred in other comprehensive income (loss). As of June 30, 2019, none of our derivative financial instruments were designated as hedges. Derivative financial instruments not designated as hedges are not speculative and are used to manage our exposure to interest rate movements, but do not meet the strict hedge accounting requirements of ASC Topic 815. Changes in the fair value of derivative financial instruments are recorded as a component of interest expense in gain or loss in fair value of derivative financial instruments in our accompanying condensed consolidated statements of operations. For the three and six months ended June 30, 2018, we did not have any derivative financial instruments. For the three and six months ended June 30, 2019, we recorded $3,021,000 and $4,999,000, respectively, as an increase to interest expense in our accompanying condensed consolidated statements of operations related to the change in the fair value of our derivative financial instruments.
See Note 14, Fair Value Measurements, for a further discussion of the fair value of our derivative financial instruments.