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Derivative Instruments
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
From time to time, we enter into derivative instruments to manage the economic risk of changes in interest rates. We do not enter into derivative transactions for speculative or trading purposes. Designated Hedges are derivatives that meet the criteria for hedge accounting and that we have elected to designate as hedges. Non-Designated Hedges are derivatives that do not meet the criteria for hedge accounting or that we did not elect to designate as hedges.
Designated Hedges
We have entered into various interest rate swap agreements, which are used to hedge the variable cash flows associated with variable-rate interest payments. Each of our swap agreements is designated for hedge accounting purposes and is currently indexed to one month Term SOFR. On April 18, 2023, we completed a series of transactions related to certain of our variable rate debt and derivative agreements that were originally indexed to LIBOR to effectuate a transition to Term SOFR. While the original agreements provided for a prescribed transition to an alternate rate, this series of transactions amended or modified our Credit Facility and all of our LIBOR-indexed interest rate swap agreements such that each agreement is now indexed to Term SOFR. See Note 2 for additional information about reference rate reform and our transition from LIBOR. Changes in the fair value of these swaps are recorded in other comprehensive income and are subsequently reclassified into earnings in the period in which the hedged forecasted transactions affect earnings.
The table below summarizes our interest rate swap instruments as of December 31, 2023:
Agreement Date
Forward
Effective Date
Maturity
Date		Strike
Rate		IndexNotional
Amount
April 18, 2023March 31, 2023January 31, 20252.80%One month Term SOFR$400,000 
April 18, 2023March 31, 2023November 30, 20242.83%One month Term SOFR400,000 
April 18, 2023April 15, 2023November 30, 20242.78%One month Term SOFR400,000 
April 18, 2023April 15, 2023February 28, 20252.79%One month Term SOFR400,000 
April 18, 2023April 15, 2023June 9, 20252.94%One month Term SOFR325,000 
April 18, 2023April 15, 2023June 9, 20252.95%One month Term SOFR595,000 
April 18, 2023April 15, 2023July 9, 20252.83%One month Term SOFR1,100,000 
April 18, 2023April 15, 2023July 31, 20253.08%One month Term SOFR200,000 
March 22, 2023July 9, 2025May 31, 20292.99%One month Term SOFR300,000 

During the years ended December 31, 2022 and 2021, we terminated interest rate swaps or portions thereof and paid the counterparties $13,292, and $20,798, respectively, in connection with these terminations. There were no such terminations during the year ended December 31, 2023.
During the years ended December 31, 2023, 2022, and 2021, interest rate swap instruments were used to hedge the variable cash flows associated with existing variable-rate interest payments. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the next 12 months, we estimate that $57,501 will be reclassified to earnings as a decrease in interest expense.
Non-Designated Hedges
Concurrent with entering into certain of the mortgage loan agreements, we entered into or acquired and maintain interest rate cap agreements with terms and notional amounts equivalent to the terms and amounts of the mortgage loans made by the third-party lenders. To the extent that the maturity date of a mortgage loan is extended through an exercise of one or more extension options, a replacement or extension interest rate cap agreement must be executed with terms similar to those associated with the initial interest rate cap agreement and strike prices equal to the greater of the interest rate cap strike price and the interest rate at which the debt service coverage ratio (as defined) is not less than 1.2 to 1.0. The interest rate cap agreement, including all of our rights to payments owed by the counterparties and all other rights, has been pledged as additional collateral for the mortgage loan. Additionally, in certain instances, in order to minimize the cash impact of purchasing required interest rate caps, we simultaneously sell interest rate caps (which have identical terms and notional amounts) such that the purchase price and sales proceeds of the related interest rate caps are intended to offset each other. As of December 31, 2023, the remaining interest rate cap has a strike price of 8.46%.
Fair Values of Derivative Instruments on the Consolidated Balance Sheets
The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023 and 2022:
Asset DerivativesLiability Derivatives
Fair Value as ofFair Value as of
Balance
Sheet Location		December 31,
2023		December 31, 2022Balance
Sheet Location		December 31,
2023		December 31, 2022
Derivatives designated as hedging instruments:
Interest rate swapsOther assets$75,487 $119,157 Other liabilities$— $— 
Derivatives not designated as hedging instruments:
Interest rate capsOther assets1 36 Other liabilities— — 
Total$75,488 $119,193 $— $— 
Offsetting Derivatives
We enter into master netting arrangements, which reduce risk by permitting net settlement of transactions with the same counterparty. The tables below present a gross presentation, the effects of offsetting, and a net presentation of our derivatives as of December 31, 2023 and 2022:
December 31, 2023
Gross Amounts Not Offset in the Statement of Financial Position
Gross Amounts of Recognized Assets/ LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets/ Liabilities Presented in the Statement of Financial PositionFinancial InstrumentsCash Collateral ReceivedNet
Amount
Offsetting assets:
Derivatives$75,488 $— $75,488 $— $— $75,488 
Offsetting liabilities:
Derivatives$— $— $— $— $— $— 

December 31, 2022
Gross Amounts Not Offset in the Statement of Financial Position
Gross Amounts of Recognized Assets/ LiabilitiesGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets/ Liabilities Presented in the Statement of Financial PositionFinancial InstrumentsCash Collateral ReceivedNet
Amount
Offsetting assets:
Derivatives$119,193 $— $119,193 $— $— $119,193 
Offsetting liabilities:
Derivatives$— $— $— $— $— $— 
Effect of Derivative Instruments on the Consolidated Statements of Comprehensive Income (Loss) and the Consolidated Statements of Operations
The tables below present the effect of our derivative financial instruments in the consolidated statements of comprehensive income (loss) and the consolidated statements of operations for the years ended December 31, 2023, 2022, and 2021:

Amount of Gain Recognized in OCI on DerivativeLocation of Gain (Loss) Reclassified from Accumulated OCI into Net IncomeAmount of Gain (Loss) Reclassified from Accumulated OCI into Net Income
Total Amount of Interest Expense Presented in the Consolidated Statements of Operations
For the Years Ended December 31,For the Years Ended December 31,For the Years Ended December 31,
202320222021202320222021202320222021
    Derivatives in cash flow hedging relationships:
Interest rate swaps$39,488 $327,323 $113,394 Interest expense$73,856 $(59,103)$(148,742)$333,457 $304,092 $322,661 

Location of
Loss
Recognized in
Net Income on Derivative		Amount of Loss Recognized in Net Income on Derivative
For the Years Ended December 31,
202320222021
Derivatives not designated as hedging instruments:
Interest rate capsInterest expense$73 $81 $129 
Credit-Risk-Related Contingent Features
The agreements with our derivative counterparties which govern our interest rate swap agreements contain a provision where we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness.
As of December 31, 2023, we were not in a net liability position with any of our derivative counterparties.