In the normal course of business, our operations are exposed to market risks, including the effect of changes in foreign currency exchange rates and interest rates. We may enter into derivative financial instruments to offset these underlying market risks. There have been no significant changes in our policy or strategy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities on the Consolidated Balance Sheets (in thousands):

	March 31, 2022				December 31, 2021
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	1,161	$	664	$	-
British pound sterling		10,476		2,268		5,361		3,492
Canadian dollar		1,741		3,261		2,856		1,790
Chinese renminbi		1		515		-		550
Euro		56,061		-		40,484		136
Japanese yen		31,104		-		23,341		-
Swedish krona		5,227		39		3,773		201

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		14,171		86		9,158		2,683
Canadian dollar		2,733		5,261		5,410		823

Interest rate swaps
Cash flow hedges
Euro		973		-		-		-
Total fair value of derivatives	$	122,487	$	12,591	$	91,047	$	9,675

The following table summarizes the activity of our undesignated foreign currency contracts for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):

	2022																					2021
	CAD			EUR			GBP			JPY			SEK			Other			Total			CAD			EUR			GBP			JPY			SEK			Other			Total
Notional amounts at January 1 ($)		175			749			383			250			85			20			1,662			163			474			207			252			38			28			1,162
New contracts ($)		45			350			(21	)		61			9			13			457			3			83			11			25			5			-			127
Matured, expired or settled contracts ($)		(16	)		(182	)		(19	)		(22	)		(4	)		(4	)		(247	)		(11	)		(36	)		(16	)		(20	)		(4	)		(4	)		(91	)
Notional amounts at March 31 ($)		204			917			343			289			90			29			1,872			155			521			202			257			39			24			1,198

Weighted average forward rate at March 31		1.27			1.19			1.27			104.39			9.30									1.32			1.23			1.33			102.66			8.59
Active contracts at March 31		81			93			77			85			84									58			74			53			68			51

The following table summarizes the undesignated derivative financial instruments exercised and associated realized and unrealized gains (losses) in Foreign Currency and Derivative Gains, Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):

Changes in the fair value of derivatives that are designated as net investment hedges of our foreign operations and cash flow hedges are recorded in Accumulated Other Comprehensive Income (Loss) (“AOCI/L”) and reflected within the Other Comprehensive Income (Loss) table below.

The following table summarizes the activity of our foreign currency contracts designated as net investment hedges for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):

	2022												2021
	BRL			CAD			GBP			Total			CAD			GBP		Total
Notional amounts at January 1 ($)		-			535			432			967			377			135		512
New contracts ($)		44			204			229			477			250			300		550
Matured, expired or settled contracts ($)		(44	)		(125	)		(100	)		(269	)		(63	)		-		(63	)
Notional amounts at March 31 ($)		-			614			561			1,175			564			435		999

Weighted average forward rate at March 31		-			1.26			1.35						1.29			1.38
Active contracts at March 31		-			7			5						7			4

The following table summarizes the activity of our interest rate swaps designated as cash flow hedges for the three months ended March 31 (in millions):

	2022						2021
	EUR			Total			EUR		USD		Total
Notional amounts at January 1 ($)		165			165			165		250		415
New contracts ($)		1,004			1,004			-		-		-
Matured, expired or settled contracts ($)		(722	)		(722	)		-		-		-
Notional amounts at March 31 ($)		447			447			165		250		415

The following table summarizes our debt and accrued interest, designated as a hedge of our net investment in international subsidiaries at the quarter ended (in millions):

The following table summarizes the unrealized gains (losses) in Foreign Currency and Derivative Gains, Net on the remeasurement of the unhedged portion of our debt and accrued interest, including euro and British pound sterling denominated debt (in millions):

The change in Other Comprehensive Income (Loss) in the Consolidated Statements of Comprehensive Income during the periods presented was due to the translation into U.S. dollars from the consolidation of the financial statements of our consolidated subsidiaries whose functional currency is not the U.S. dollar. The change in fair value of the effective portion of our derivative financial instruments that have been designated as net investment hedges and cash flow hedges and the translation of the hedged portion of our debt, as discussed above, are also included in Other Comprehensive Income (Loss).

The following table presents these changes in Other Comprehensive Income (Loss) (in thousands):

	Three Months Ended March 31,
	2022		2021
Derivative net investment hedges	$	4,093	$	(5,266	)
Debt designated as nonderivative net investment hedges		33,597		(6,402	)
Cumulative translation adjustment		151,833		183,427
Total foreign currency translation gains, net	$	189,523	$	171,759

Cash flow hedges⁽¹⁾	$	4,422	$	1,371
Our share of derivatives from unconsolidated co-investment ventures		8,927		3,450
Total unrealized gains on derivative contracts, net	$	13,349	$	4,821
Total change in other comprehensive income	$	202,872	$	176,580

There have been no significant changes in our policy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.

At March 31, 2022 and December 31, 2021, other than the derivatives discussed previously, we had no significant financial assets or financial liabilities that were measured at fair value on a recurring basis in the Consolidated Financial Statements. All of our derivatives held at March 31, 2022 and December 31, 2021, were classified as Level 2 of the fair value hierarchy.

Acquired properties and assets we expect to sell or contribute are significant nonfinancial assets that met the criteria to be measured at fair value on a nonrecurring basis. At March 31, 2022 and December 31, 2021, we estimated the fair value of our properties using Level 2 or Level 3 inputs from the fair value hierarchy. See more information on our acquired properties in Notes 2 and assets held for sale or contribution in Note 4.

At March 31, 2022 and December 31, 2021, the carrying amounts of certain financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses were representative of their fair values. The differences in the fair value of our debt from the carrying value in the table below were the result of differences in interest rates or borrowing spreads that were available to us at March 31, 2022 and December 31, 2021, as compared with those in effect when the debt was issued or assumed, including reduced borrowing spreads due to our improved credit ratings. The fair value of the senior notes decreased during the three months ended March 31, 2022 due to the increase in bond yields in the market as compared to the weighted average interest rates on our senior notes. The senior notes and secured mortgage debt may contain prepayment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so. We evaluate this on an on-going basis based on market conditions and other factors.

The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):

	March 31, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit Facilities	$	-	$	-	$	491,393	$	491,429
Senior notes		16,341,307		15,232,910		14,981,690		15,151,781
Term loans and unsecured other		1,751,284		1,757,948		1,825,195		1,835,569
Secured mortgage		275,947		269,220		416,776		437,215
Total	$	18,368,538	$	17,260,078	$	17,715,054	$	17,915,994