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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
We utilize interest rate swap agreements for risk management purposes to reduce the impact of changes in interest rates on our variable rate debt.  We may also enter into forward starting swaps to set the effective interest rate on planned variable rate financing. On the date we enter into an interest rate swap, the derivative is designated as a hedge against the variability of cash flows that are to be paid in connection with a recognized liability.  Subsequent changes in the fair value of a derivative designated as a cash flow hedge that is determined to be effective are recorded in other comprehensive income (“OCI”) until earnings are affected by the variability of cash flows of the hedged transaction.  The differential between fixed and variable rates to be paid or received is accrued, as interest rates change, and recognized currently as interest expense in the condensed consolidated statements of operations and comprehensive income.  We assess effectiveness of our cash flow hedges both at inception and on an ongoing basis.  Our cash flow hedges become ineffective, for example, if critical terms of the hedging instrument and the debt do not perfectly match such as notional amounts, settlement dates, reset dates and calculation period and Secured Overnight Financing Rate (“SOFR”) rate. At September 30, 2023, all of our hedges were effective.

As of September 30, 2023, the Company had 11 interest rate swap agreements in effect for an aggregate notional amount of $310.0 million and two forward starting interest rate swap agreements for an aggregate notional amount of $100.0 million, converting our floating rate corporate debt to fixed rate debt.

The following table summarizes the notional values and fair values of our derivative financial instruments as of September 30, 2023:
 Hedge
Type		Reference RateNotional
Value		Fixed
Rate		Fair
Value		Expiration
Date
Underlying Debt
  (In thousands) (In thousands) 
Derivative Assets
Unsecured term loanCash FlowSOFR$30,000 1.165 %$1,323 11/2024
Unsecured term loanCash FlowSOFR10,000 1.169 %442 11/2024
Unsecured term loanCash FlowSOFR10,000 1.182 %441 11/2024
Unsecured term loanCash FlowSOFR25,000 1.210 %1,226 01/2025
Unsecured term loanCash FlowSOFR25,000 1.239 %1,216 01/2025
Unsecured term loanCash FlowSOFR50,000 1.201 %4,817 11/2026
Unsecured term loanCash FlowSOFR25,000 1.308 %2,418 01/2027
Unsecured term loanCash FlowSOFR50,000 1.289 %4,824 01/2027
Unsecured term loanCash FlowSOFR25,000 1.335 %2,399 01/2027
Unsecured term loanCash FlowSOFR30,000 3.344 %1,189 02/2028
Unsecured term loanCash FlowSOFR30,000 3.359 %1,176 02/2028
$310,000 $21,471 
Derivative Assets - Forward Swaps
Unsecured term loanCash FlowSOFR$50,000 2.855 %$1,279 08/2027
Unsecured term loanCash FlowSOFR50,000 2.865 %1,612 02/2028
Total Derivative Assets$410,000 $24,362 
    
The following table summarizes the notional values and fair values of our derivative financial instruments as of December 31, 2022:
 Hedge
Type		Reference RateNotional
Value		Fixed
Rate		Fair
Value		Expiration
Date
Underlying Debt
  (In thousands) (In thousands) 
Derivative Assets
Unsecured term loanCash FlowLIBOR$60,000 1.770 %$264 03/2023
Unsecured term loanCash FlowSOFR30,000 1.165 %1,761 11/2024
Unsecured term loanCash FlowSOFR10,000 1.169 %587 11/2024
Unsecured term loanCash FlowSOFR10,000 1.182 %585 11/2024
Unsecured term loanCash FlowSOFR25,000 1.210 %1,529 01/2025
Unsecured term loanCash FlowSOFR25,000 1.239 %1,512 01/2025
Unsecured term loanCash FlowSOFR50,000 1.201 %4,694 11/2026
Unsecured term loanCash FlowSOFR25,000 1.308 %2,316 01/2027
Unsecured term loanCash FlowSOFR50,000 1.289 %4,634 01/2027
Unsecured term loanCash FlowSOFR25,000 1.335 %2,292 01/2027
$310,000 $20,174 
Derivative Assets - Forward Swaps
Unsecured term loanCash FlowSOFR$50,000 2.855 %$367 08/2027
Unsecured term loanCash FlowSOFR30,000 3.344 %421 02/2028
Unsecured term loanCash FlowSOFR30,000 3.359 %407 02/2028
Unsecured term loanCash FlowSOFR50,000 2.865 %459 02/2028
$470,000 $21,828 

The effect of derivative financial instruments on our condensed consolidated statements of operations and comprehensive income for the three months ended September 30, 2023 and 2022 is summarized as follows:
Amount of Gain (Loss)
Recognized in OCI on Derivative		Location of Gain
(Loss)
Reclassified from
Accumulated OCI
into Income		Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
Derivatives in Cash Flow Hedging RelationshipThree Months Ended September 30,Three Months Ended September 30,
2023202220232022
 (In thousands) (In thousands)
Interest rate contracts - assets$5,372 $8,159 Interest expense$(2,826)$(658)
Interest rate contracts - liabilities— — Interest expense— — 
Equity investments in unconsolidated joint ventures50 — (Loss) earnings from unconsolidated joint ventures(21)— 
Total$5,422 $8,159 Total$(2,847)$(658)
The effect of derivative financial instruments on our condensed consolidated statements of operations and comprehensive income for the nine months ended September 30, 2023 and 2022 is summarized as follows:
Amount of Gain (Loss)
Recognized in OCI on Derivative		Location of Gain
(Loss)
Reclassified from
Accumulated OCI
into Income		Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
Derivatives in Cash Flow Hedging RelationshipNine Months Ended September 30,Nine Months Ended September 30,
2023202220232022
 (In thousands) (In thousands)
Interest rate contracts - assets$10,139 $21,037 Interest expense$(7,605)$570 
Interest rate contracts - liabilities224 2,477 Interest expense(224)235 
Equity investments in unconsolidated joint ventures188 — (Loss) earnings from unconsolidated joint ventures(33)— 
Total$10,551 $23,514 Total$(7,862)$805