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Fair Value of Derivatives and Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Interest Rate Derivatives
As of September 30, 2023, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):
Effective DateExpiration DateCounterpartyIndex (1)NotionalFixed Rate
7/1/20197/1/2024KeyBankDaily SOFR$100,000 1.6290 %
9/1/201912/21/2025KeyBankDaily SOFR100,000 1.4180 %
9/1/201912/21/2025KeyBankDaily SOFR50,000 1.4190 %
2/3/20202/1/2025KeyBankDaily SOFR50,000 1.2790 %
3/2/20203/3/2025KeyBankDaily SOFR20,000 0.9140 %
$320,000 1.4309 %(3)
Effective DateExpiration DateCounterpartyIndex (2)NotionalFixed Rate
3/31/202211/1/2025KeyBankDaily SOFR$100,000 1.5110 %
3/31/202211/1/2025KeyBankDaily SOFR100,000 1.9190 %
3/31/202211/1/2025KeyBankDaily SOFR50,000 2.4410 %
6/1/202211/1/2025MizuhoDaily SOFR100,000 2.6284 %
6/1/202211/1/2025MizuhoDaily SOFR100,000 2.9413 %
6/1/202211/1/2025MizuhoDaily SOFR100,000 2.7900 %
7/1/202211/1/2025MizuhoDaily SOFR100,000 2.6860 %
4/3/202311/1/2025MizuhoDaily SOFR250,000 3.5993 %
$900,000 2.7438 %(3)
(1)
These interest rate swaps previously referenced one-month LIBOR, which ceased publication on June 30, 2023. Beginning July 1, 2023, these interest rate swaps transitioned to daily SOFR plus 0.1145% for the floating rate. As of September 30, 2023, daily SOFR was 5.3100%.
(2)
As of September 30, 2023, daily SOFR was 5.3100%.
(3)
Represents the weighted average fixed rate of the interest rate swaps, which have a combined weighted average fixed rate of 2.3994%.
Schedule of Derivatives Not Designated as Hedging Instruments
As of September 30, 2023, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):
DerivativeNotionalHedged Floating Rate DebtIndexIndex as of September 30, 2023Strike Rate
Interest Rate Cap$300,000 JPM FacilityOne-Month Term SOFR5.3190 %1.50 %
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The table below presents the fair value of the Company’s derivative financial instruments, which are presented on the consolidated balance sheets as of September 30, 2023 and December 31, 2022 (in thousands):
Asset DerivativesLiability Derivatives
Balance Sheet LocationSeptember 30, 2023December 31, 2022September 30, 2023December 31, 2022
Derivatives designated as hedging instruments:
Interest rate swapsInterest rate derivatives, at fair value$55,540 $49,244 $— $— 
Derivatives not designated as hedging instruments:
Interest rate capsInterest rate derivatives, at fair value20,154 21,569 — — 
Total$75,694 $70,813 $— $— 
The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 (in thousands):
For the Three Months EndedFor the Nine Months Ended
Location of gain/(loss) recognized on Statement of Operations and Comprehensive Income/(Loss)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Derivatives designated as hedging instruments:
Interest rate swapsUnrealized gain on interest rate hedges$163 $29,356 $6,297 $54,866 
Derivatives not designated as hedging instruments:
Interest rate capsInterest expense(639)7,694 (1,386)9,765 
Total$(476)$37,050 $4,911 $64,631 
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments The table below presents the carrying value (outstanding principal balance) and estimated fair value of our debt at September 30, 2023 and December 31, 2022 (in thousands):
September 30, 2023December 31, 2022
Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Debt$2,498,077 $2,405,126 $2,615,970 $2,515,475 
Schedule of Disclosure of Long-Lived Assets Held-for-sale
The following table sets forth a summary of the Company’s held for sale assets and real estate assets that underwent a casualty related impairment that were accounted for at fair value on a nonrecurring basis as of their respective measurement date (in thousands):
Fair Value Hierarchy Level
DescriptionFair ValueLevel 1Level 2Level 3
Assets held at September 30, 2023
  Real estate assets - impaired at March 31, 2023$1,949 $— $— $1,949 
  Real estate assets - impaired at June 30, 2023$49,041 $— $— $49,041 (1)
  Real estate assets - impaired at September 30, 2023$105,443 $— $— $105,443 
(1)Real estate assets impaired at June 30, 2023 include $38.1 million of assets impaired related to a casualty event in the Portales market which are included in operating real estate. Total casualty impairment for these properties was $7.5 million, partially offset by $7.4 million of insurance recoveries, which are recorded in loss on sales and impairment of real estate for the nine months ended September 30, 2023.