Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value by balance sheet groupings

We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loans and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions):

September 30, 2020	Carrying value		Estimated fair value
Mortgages payable assumed in connection with acquisitions (1)	$	334.7	$	343.5
Notes and bonds payable (2)	7,007.0		7,901.3

December 31, 2019	Carrying value		Estimated fair value
Mortgages payable assumed in connection with acquisitions (1)	$	408.4	$	417.7
Notes and bonds payable (2)	6,317.6		6,826.1

(1)Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $1.9 million at September 30, 2020, and $3.0 million at December 31, 2019. Also excludes deferred financing costs of $1.1 million at September 30, 2020 and $1.3 million at December 31, 2019.

(2)Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was approximately $28.2 million at September 30, 2020, and $6.3 million at December 31, 2019. Also excludes deferred financing costs of $40.3 million at September 30, 2020 and $35.9 million at December 31, 2019.

Schedule of derivative financial instruments

The following table summarizes the terms and fair values of our derivative financial instruments at September 30, 2020 and December 31, 2019 (dollars in millions):

Derivative Type	Accounting Classification	Hedge Designation	Notional Amount				Strike	Effective Date	Maturity Date	Fair Value - asset (liability)
			September 30,		December 31,					September 30,		December 31,
			2020		2019					2020		2019
Interest rate swap	Derivative	Cash flow	$	6.8	$	7.0	6.03%	09/25/2012	09/03/2021	$	(0.2)	$	(0.2)
Interest rate swap	Derivative	Cash flow	—		250.0		1.72%	06/20/2015	06/30/2020	—		(0.1)
Interest rate swap	Derivative	Cash flow	250.0		250.0		3.04%	10/24/2018	03/24/2024	(24.4)		(14.7)
Cross-currency swap (1)	Derivative	Cash flow	41.6		41.6		(2)	05/20/2019	05/22/2034	1.5		(2.6)
Cross-currency swap (1)	Derivative	Cash flow	41.6		41.6		(3)	05/20/2019	05/22/2034	1.5		(2.6)
Cross-currency swap (1)	Derivative	Cash flow	41.6		41.6		(4)	05/20/2019	05/22/2034	1.2		(2.9)
Cross-currency swap (1)	Derivative	Cash flow	41.6		41.6		(5)	05/20/2019	05/22/2034	0.9		(3.2)
Currency exchange swap (1)	Derivative	N/A	300.1		—		(6)	09/01/2020	10/01/2020	9.5		—
Forward-starting swap	Derivative	Cash flow	75.0		—		2.02%	(7)	06/30/2033	(7.1)		—
Forward-starting swap	Derivative	Cash flow	75.0		—		1.94%	(7)	11/30/2032	(7.1)		—
Forward-starting swap	Derivative	Cash flow	25.0		—		1.67%	(7)	11/30/2032	(1.7)		—
Forward-starting swap	Derivative	Cash flow	125.0		—		1.75%	(7)	06/30/2033	(8.5)		—
Forward-starting swap	Hybrid debt	Cash flow	125.0		—		1.88%	(7)	11/30/2032	(11.0)		—
Forward-starting swap	Hybrid debt	Cash flow	75.0		—		2.00%	(7)	06/30/2033	(6.9)		—
			$	1,223.3	$	673.4				$	(52.3)	$	(26.3)

(1)Represents British Pound Sterling, or GBP, United States Dollar, or USD, currency instrument.

(2)GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD fixed rate at 9.800%.

(3)GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD fixed rate at 9.803%.

(4)GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD fixed rate at 9.745%.

(5)GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD fixed rate at 9.755%.

(6) The forward GBP-USD exchange rate is 1.33. Upon maturity on October 1, 2020, we paid £224.9 million and received $300.1 million.

(7) The five treasury rate locks which were entered into during February 2020 were terminated in June 2020 and converted into six forward starting interest rate swaps through a cashless settlement of the terminated treasury rate locks.