Financial Instruments and Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2022 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of fair value by balance sheet groupings |
The fair value of our financial instruments not carried at fair value are disclosed as follows (in millions): | | | | | | | | | | | | | June 30, 2022 | Carrying value | | Estimated fair value | Mortgages payable assumed in connection with acquisitions (1) | $ | 928.9 | | $ | 906.6 | | Notes and bonds payable (2) | $ | 13,390.3 | | $ | 12,377.8 | |
| | | | | | | | | | | | | December 31, 2021 | Carrying value | | Estimated fair value | Mortgages payable assumed in connection with acquisitions (1) | $ | 1,114.1 | | $ | 1,154.7 | | Notes and bonds payable (2) | $ | 12,257.3 | | $ | 13,114.5 | |
(1)Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $19.2 million at June 30, 2022, and $28.7 million at December 31, 2021. Also excludes deferred financing costs of $1.0 million at June 30, 2022, and $790,000 at December 31, 2021. (2)Excludes non-cash premiums and discounts recorded on notes payable. The unamortized balance of the net premiums was $257.0 million at June 30, 2022, and $295.5 million at December 31, 2021. Also excludes deferred financing costs of $58.7 million at June 30, 2022, and $53.1 million at December 31, 2021.
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| Schedule of provisions for impairment |
The following table summarizes our provisions for impairment on real estate investments during the periods indicated below (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | 2022 | | 2021 | | 2022 | | 2021 | | Carrying value prior to impairment | $ | 64.5 | | | $ | 45.6 | | | $ | 98.2 | | | $ | 59.2 | | | Less: total provisions for impairment | (7.7) | | | (17.2) | | | (14.7) | | | (20.0) | | | Carrying value after impairment | $ | 56.8 | | | $ | 28.4 | | | $ | 83.5 | | | $ | 39.2 | | | | | | | | | | | Number of properties: | | | | | | | | | Classified as held for sale | 9 | | | 1 | | | 23 | | | 1 | | | Classified as held for investment | 3 | | | 5 | | | 3 | | | 6 | | | Sold | 32 | | | 31 | | | 49 | | | 44 | |
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| Schedule of gain (loss) recognized on derivatives in other comprehensive income |
The following table summarizes the amount of unrealized gain (loss) on derivatives in other comprehensive income during the periods indicated below (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | Derivatives in Cash Flow Hedging Relationships | | 2022 | | 2021 | | 2022 | | 2021 | | Currency swaps | | $ | (6,986) | | | $ | 5,598 | | | $ | (5,091) | | | $ | 3,978 | | | Interest rate swaps | | 30,386 | | | (20,353) | | | 69,391 | | | 27,676 | | | Foreign currency forwards | | 10,054 | | | 3,922 | | | 12,844 | | | 3,922 | | | Total unrealized gain on derivatives | | $ | 33,454 | | | $ | (10,833) | | | $ | 77,144 | | | $ | 35,576 | |
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| Summary of gain (loss) on derivatives reclassified from accumulated other comprehensive income (loss) |
The following table summarizes the amount of gain (loss) on derivatives reclassified from accumulated other comprehensive income (loss) during the periods indicated below (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | Derivatives in Cash Flow Hedging Relationships | | Location of Gain (Loss) Recognized in Income | | 2022 | | 2021 | | 2022 | | 2021 | | Currency swaps | | Foreign currency and derivative gain, net | | $ | 21,527 | | | $ | (235) | | | $ | 27,641 | | | $ | (1,386) | | | Interest rate swaps | | Interest expense | | (2,153) | | | (2,578) | | | (4,683) | | | (5,119) | | | Net increase (decrease) to net income | | | | $ | 19,374 | | | $ | (2,813) | | | $ | 22,958 | | | $ | (6,505) | |
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| Schedule of foreign currency and derivative gains (losses) |
The following table details our foreign currency and derivative gain, net included in income (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | | 2022 | | 2021 | | 2022 | | 2021 | | Realized foreign currency and derivative gain (loss), net: | | | | | | | | | | Gain on the settlement of undesignated derivatives | | $ | 79,308 | | | $ | — | | | $ | 76,628 | | | $ | — | | | Gain (loss) on the settlement of designated derivatives reclassified from AOCI | | 21,527 | | | (235) | | | 27,641 | | | (1,386) | | | Gain (loss) on the settlement of transactions with third parties | | 1,004 | | | (104) | | | 952 | | | (104) | | | Total realized foreign currency and derivative gain (loss), net | | $ | 101,839 | | | $ | (339) | | | $ | 105,221 | | | $ | (1,490) | | | | | | | | | | | | Unrealized foreign currency and derivative gain (loss), net: | | | | | | | | | | Gain on the change in fair value of undesignated derivatives | | $ | 37,274 | | | $ | — | | | $ | 59,995 | | | $ | 3,724 | | | Gain (loss) on remeasurement of certain assets and liabilities | | (131,633) | | | 739 | | | (158,326) | | | (1,030) | | | Total unrealized foreign currency and derivative gain (loss), net | | $ | (94,359) | | | $ | 739 | | | $ | (98,331) | | | $ | 2,694 | | | Total foreign currency and derivative gain, net | | $ | 7,480 | | | $ | 400 | | | $ | 6,890 | | | $ | 1,204 | |
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| Schedule of derivative financial instruments |
The following table summarizes the terms and fair values of our derivative financial instruments at June 30, 2022, and December 31, 2021 (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivative Type | Number of Instruments (1) | Accounting Classification | Notional Amount as of | Weighted Average Strike Rate (2) | Maturity Date (3) | Fair Value - asset (liability) as of | | | | | | | | | | | Derivatives Designated as Hedging Instruments | June 30, 2022 | December 31, 2021 | | | June 30, 2022 | December 31, 2021 | | | | | | | | Interest rate swap | 1 | Derivative | $ | 250.0 | | $ | 250.0 | 2.88% | March 2024 | $ | 0.4 | | $ | (11.9) | | Cross-currency swaps (4) | — | Derivative | — | | 166.3 | — | — | — | | (13.8) | | | Foreign currency forwards | 36 | Derivative | 177.5 | | 176.1 | (5) | Jul 2022 - Aug 2024 | 20.4 | | 7.6 | | Forward-starting swaps (6) | 4 | Derivative | 300.0 | | 300.0 | 1.86% | Nov 2032 - Jun 2033 | 31.2 | | (3.2) | | Forward-starting swaps (6) | 2 | Hybrid Debt | 200.0 | | 200.0 | 1.93% | Nov 2032 - Jun 2033 | 16.2 | | (5.1) | | | | | $ | 927.5 | | $ | 1,092.4 | | | | $ | 68.2 | | $ | (26.4) | | | Derivatives not Designated as Hedging Instruments | | | | | | | Currency exchange swaps (7) | 5 | Derivative | 833.2 | | 1,639.5 | (8) | Jul 2022 - Nov 2022 | 36.9 | | (14.7) | | | | | | | | | | | | | | | | | | | | | Total of all Derivatives | $ | 1,760.7 | | $ | 2,731.9 | | | | $ | 105.1 | | $ | (41.1) | |
(1)This column represents the number of instruments outstanding as of June 30, 2022. (2)Weighted average strike rate is calculated using the current notional value as of June 30, 2022. (3)This column represents maturity dates for instruments outstanding as of June 30, 2022. (4)In June 2022, we terminated the four British Pound Sterling, or GBP, cross-currency swaps with notional amount of $166.3 million. (5)Weighted average forward GBP-USD exchange rate of 1.40. (6)There were five treasury rate locks entered into during February 2020 that were terminated in June 2020 and converted into six forward starting interest rate swaps through a cashless settlement. (7)Represents three GBP currency exchange swaps with notional amount of $564.9 million and two Euro, or EUR, currency exchange swaps with notional amount of $268.3 million. (8)Weighted average Forward GBP-USD exchange rate of 1.26 and Weighted Average Forward EUR-USD exchange rate of 1.11.
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