Risk Management and Use of Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location	Derivative Assets Fair Value at				Derivative Liabilities Fair Value at
		June 30, 2020		December 31, 2019		June 30, 2020			December 31, 2019
Foreign currency collars	Other assets, net	$	24,772	$	14,460	$	—		$	—
Interest rate caps	Other assets, net	1		1		—			—
Foreign currency forward contracts	Other assets, net	—		9,689		—			—
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(6,676		)	(4,494		)
Foreign currency collars	Accounts payable, accrued expenses and other liabilities	—		—		(365		)	(1,587		)
		24,773		24,150		(7,041		)	(6,081		)
Derivatives Not Designated as Hedging Instruments
Stock warrants	Other assets, net	3,700		5,000		—			—
Interest rate swap (a)	Other assets, net	—		8		—			—
Interest rate swap (a)	Accounts payable, accrued expenses and other liabilities	—		—		(71		)	(93		)
		3,700		5,008		(71		)	(93		)
Total derivatives		$	28,473	$	29,158	$	(7,112	)	$	(6,174	)

__________

(a)

These interest rate swaps do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the underlying variable-rate debt.

Schedule of derivative instruments, effect on other comprehensive income (loss)

The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized on Derivatives in  Other Comprehensive Income (Loss) (a)
	Three Months Ended June 30,						Six Months Ended June 30,
Derivatives in Cash Flow Hedging Relationships	2020			2019			2020			2019
Foreign currency collars	$	(6,311	)	$	262		$	11,505		$	3,878
Foreign currency forward contracts	(2,943		)	(2,289		)	(5,272		)	(1,170		)
Interest rate swaps	(122		)	(562		)	(2,359		)	(2,377		)
Interest rate caps	(1		)	176			1			149
Derivatives in Net Investment Hedging Relationships (b)
Foreign currency collars	(20		)	1			25			1
Foreign currency forward contracts	—			(1		)	—			(1		)
Total	$	(9,397	)	$	(2,413	)	$	3,900		$	480

		Amount of Gain (Loss) on Derivatives Reclassified from  Other Comprehensive Income (Loss)
Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended June 30,						Six Months Ended June 30,
		2020			2019			2020			2019
Foreign currency forward contracts	Other gains and (losses)	$	2,917		$	2,120		$	5,716		$	4,554
Foreign currency collars	Other gains and (losses)	1,917			1,285			2,901			2,373
Interest rate swaps and caps	Interest expense	(468		)	(1,547		)	(706		)	(1,614		)
Total		$	4,366		$	1,858		$	7,911		$	5,313

__________

(a) Excludes net losses of less than $0.1 million and $1.0 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2020 and 2019, respectively, and net losses of $0.5 million and $1.9 million for the six months ended June 30, 2020 and 2019, respectively.

(b) The changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss).

Schedule of derivative instruments, gain (loss) in statement of financial performance

The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands):

		Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income	Three Months Ended June 30,						Six Months Ended June 30,
		2020			2019			2020			2019
Stock warrants	Other gains and (losses)	$	(1,400	)	$	(300	)	$	(1,300	)	$	(300	)
Foreign currency forward contracts	Other gains and (losses)	(267		)	(31		)	(43		)	(261		)
Foreign currency collars	Other gains and (losses)	(208		)	154			431			195
Interest rate swaps	Interest expense	15			13			30			22
Interest rate swaps	Other gains and (losses)	—			(26		)	—			(26		)
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps	Interest expense	547			(1,062		)	864			(1,127		)
Interest rate caps	Interest expense	—			(54		)	—			(95		)
Foreign currency forward contracts	Other gains and (losses)	—			—			—			(132		)
Foreign currency collars	Other gains and (losses)	—			—			—			7
Total		$	(1,313	)	$	(1,306	)	$	(18	)	$	(1,717	)

Schedule of derivative instruments

The following table presents the foreign currency collars that we had outstanding at June 30, 2020 (currency in thousands):

Foreign Currency Derivatives	Number of Instruments	Notional Amount		Fair Value at June 30, 2020
Designated as Cash Flow Hedging Instruments
Foreign currency collars	88	296,800	EUR	$	20,322
Foreign currency collars	64	42,400	GBP	4,035
Foreign currency collars	2	1,300	NOK	17
Designated as Net Investment Hedging Instruments
Foreign currency collar	1	2,500	NOK	33
				$	24,407

The interest rate swaps and caps that our consolidated subsidiaries had outstanding at June 30, 2020 are summarized as follows (currency in thousands):

Interest Rate Derivatives	Number of Instruments	Notional Amount		Fair Value at June 30, 2020 (a)
Designated as Cash Flow Hedging Instruments
Interest rate swaps	5	74,998	USD	$	(5,149	)
Interest rate swaps	2	49,041	EUR	(1,527		)
Interest rate cap	1	11,232	EUR	1
Interest rate cap	1	6,394	GBP	—
Not Designated as Hedging Instruments
Interest rate swap (b)	1	4,549	EUR	(71		)
				$	(6,746	)

__________ 

(a) Fair value amounts are based on the exchange rate of the euro or British pound sterling at June 30, 2020, as applicable.

(b) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt.