Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

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):

	June 30, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Money Market Funds	$	—	$	—	$	—	$	4,504	$	—	$	—
Derivative financial instruments		—		1,057		—		—		7,018		—
Liabilities
Derivative financial instruments		—		37,354		—		—		7,304		—

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps 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	June 30, 2019			December 31, 2018
Core
Interest Rate Swaps	$	424,074	Dec 2012-July 2020		Mar 2022-July 2030			1.71	%	—		3.77	%	Other Liabilities ^(a)	$	(31,570	)	$	(6,332	)
Interest Rate Swaps		163,500	Oct 2014 - July 2016		Nov 2019-June 2021			1.24	%	—		1.70	%	Other Assets		1,025			6,022
	$	587,574													$	(30,545	)	$	(310	)

Fund II
Interest Rate Swap	$	19,201	Oct 2014		Nov 2021			2.88	%	—		2.88	%	Other Liabilities	$	(150	)	$	—
Interest Rate Swap		—		—		—		—		—		—		Other Assets		—			108
Interest Rate Cap		23,300	Mar 2019		Mar 2022			3.50	%	—		3.50	%	Other Assets		9			—
	$	42,501													$	(141	)	$	108

Fund III
Interest Rate Cap	$	58,000	Dec 2016		Jan 2020			3.00	%	—		3.00	%	Other Assets	$	—		$	8

Fund IV
Interest Rate Swaps	$	23,100	Mar 2017		Mar 2020			1.82	%	—		1.82	%	Other Assets	$	23		$	851
Interest Rate Swap		70,114	Mar 2017 - May 2019		Apr 2022 - Dec 2022			1.97	%	—		4.00	%	Other Liabilities		(878	)		—
Interest Rate Caps		108,900	July 2016 - Nov 2016		Aug 2019 - Dec 2019			3.00	%	—		3.00	%	Other Assets		—			8
	$	202,114													$	(855	)	$	859

Fund V
Interest Rate Swap	$	—		—		—		—		—		—		Other Assets	$	—		$	21
Interest Rate Swaps		156,900	Jan 2018-Mar 2019		Feb 2021-Mar 2024			2.27	%	—		2.88	%	Other Liabilities		(4,756	)		(972	)
	$	156,900													$	(4,756	)	$	(951	)

Total asset derivatives															$	1,057		$	7,018
Total liability derivatives															$	(37,354	)	$	(7,304	)

(a)

Includes two swaps with an aggregate fair value of ($10.6) million and ($2.9) million at June 30, 2019 and December 31, 2018, respectively, which were acquired during July 2018 and are not effective until July 2020.

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):

			June 30, 2019				December 31, 2018
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Notes Receivable ^(a)		3	$	94,662	$	93,532	$	109,613	$	107,370
Mortgage and Other Notes Payable ^(a)		3		1,035,677		1,040,198		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		660,025		660,734		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.