XML 46 R32.htm IDEA: XBRL DOCUMENT v3.19.1
Financial Instruments and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

 

 

 

March 31, 2019

 

 

December 31, 2018

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Funds

 

$

1,000

 

 

$

 

 

$

 

 

$

4,504

 

 

$

 

 

$

 

Derivative financial instruments

 

 

 

 

 

3,528

 

 

 

 

 

 

 

 

 

7,018

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

 

 

 

17,374

 

 

 

 

 

 

 

 

 

7,304

 

 

 

 

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps for the periods presented (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

Strike Rate

 

 

 

 

Fair Value

 

Derivative

Instrument

 

Aggregate Notional Amount

 

 

Effective Date

 

Maturity Date

 

Low

 

 

 

 

High

 

 

Balance Sheet

Location

 

March 31,

2019

 

 

December 31,

2018

 

Core

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

286,058

 

 

Dec 2012-July 2020

 

Mar 2022-July 2030

 

 

2.22

%

 

 

 

3.77

%

 

Other Liabilities (a)

 

$

(15,104

)

 

$

(6,332

)

Interest Rate Swaps

 

 

245,827

 

 

Feb 2013 - Dec 2017

 

Nov 2019-June 2026

 

 

1.24

%

 

 

 

3.77

%

 

Other Assets

 

 

3,129

 

 

 

6,022

 

 

 

$

531,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(11,975

)

 

$

(310

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swap

 

$

19,264

 

 

Oct 2014

 

Nov 2021

 

 

2.88

%

 

 

 

2.88

%

 

Other Assets

 

$

16

 

 

$

108

 

Interest Rate Cap

 

 

23,300

 

 

Mar 2019

 

Mar 2022

 

 

3.50

%

 

 

 

3.50

%

 

Other Assets

 

 

17

 

 

 

 

 

 

$

42,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

33

 

 

$

108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund III

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Cap

 

$

58,000

 

 

Dec 2016

 

Jan 2020

 

 

3.00

%

 

 

 

3.00

%

 

Other Assets

 

$

 

 

$

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund IV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

71,602

 

 

Mar 2017 - Nov 2017

 

Mar 2020 - Dec 2022

 

 

1.82

%

 

 

 

2.11

%

 

Other Assets

 

$

366

 

 

$

851

 

Interest Rate Swap

 

 

2,246

 

 

Jan 2019

 

Apr 2022

 

 

2.61

%

 

 

 

2.61

%

 

Other Liabilities

 

 

(37

)

 

 

 

Interest Rate Caps

 

 

108,900

 

 

July 2016 - Nov 2016

 

Aug 2019 - Dec 2019

 

 

3.00

%

 

 

 

3.00

%

 

Other Assets

 

 

 

 

 

8

 

 

 

$

182,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

329

 

 

$

859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund V

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swap

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

 

 

$

21

 

Interest Rate Swaps

 

 

156,900

 

 

Jan 2018-Mar 2019

 

Feb 2021-Mar 2024

 

 

2.27

%

 

 

 

2.88

%

 

Other Liabilities

 

 

(2,233

)

 

 

(972

)

 

 

$

156,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(2,233

)

 

$

(951

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,528

 

 

$

7,018

 

Total liability derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,374

)

 

$

(7,304

)

 

 

(a)

Includes two swaps with a fair value of ($6.1) million and ($2.9) million at March 31, 2019 and December 31, 2018, respectively, which were acquired during July 2018 and are not effective until July 2020.

Financial statements of Income (Losses) Recognized Related to Cash Flow Hedges

The following table presents the location in the financial statements of the income (losses) recognized related to the Company’s cash flow hedges (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Amount of (loss) income recognized in other comprehensive income

 

$

(13,306

)

 

$

5,653

 

Amount of (income) loss subsequently reclassified to earnings

 

 

(551

)

 

 

363

 

Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

 

 

 

 

 

 

 

March 31, 2019

 

 

December 31, 2018

 

 

 

Level

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

Notes Receivable (a)

 

 

3

 

 

$

109,769

 

 

$

108,343

 

 

$

109,613

 

 

$

107,370

 

Mortgage and Other Notes Payable (a)

 

 

3

 

 

 

1,120,349

 

 

 

1,122,067

 

 

 

1,026,708

 

 

 

1,021,075

 

Investment in non-traded equity securities (b)

 

 

3

 

 

 

 

 

 

23,208

 

 

 

 

 

 

23,208

 

Unsecured notes payable and Unsecured line of credit (c)

 

 

2

 

 

 

490,425

 

 

 

490,819

 

 

 

533,625

 

 

 

533,954

 

 

(a)

The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.

(b)

Represents Fund II’s cost-method investment in Albertson’s supermarkets (Note 4).

(c)

The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.