XML 45 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of summary of outstanding interest rate swap contracts
The following table summarizes the Company’s outstanding interest rate swap contracts which are included in other liabilities on the accompanying consolidated balance sheets as of June 30, 2020:
Hedged Debt Instrument
 
Effective Date
 
Maturity Date
 
Pay Fixed Rate
 
Receive Floating
Rate Index
 
Current Notional Amount
 
Fair Value
Cullen Oaks mortgage loan
 
Feb 18, 2014
 
Feb 15, 2021
 
2.2750%
 
LIBOR - 1 month
 
$
12,300

 
$
(163
)
Cullen Oaks mortgage loan
 
Feb 18, 2014
 
Feb 15, 2021
 
2.2750%
 
LIBOR - 1 month
 
12,426

 
(165
)
Park Point mortgage loan
 
Feb 1, 2019
 
Jan 16, 2024
 
2.7475%
 
LIBOR - 1 month
 
70,000

 
(6,454
)
College Park mortgage loan
 
Oct 16, 2019
 
Oct 16, 2022
 
1.2570%
 
LIBOR - 1 month, with 1 day lookback
 
37,500

 
(983
)
Unsecured term loan
 
Nov 4, 2019
 
Jun 27, 2022
 
1.4685%
 
LIBOR - 1 month
 
100,000

 
(2,695
)
Unsecured term loan
 
Dec 2, 2019
 
Jun 27, 2022
 
1.4203%
 
LIBOR - 1 month
 
100,000

 
(2,598
)
 
 
 
 
 
 
 
 
Total
 
$
332,226

 
$
(13,058
)
Schedule of fair value of derivative financial instruments and classification on consolidated balance sheet
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of June 30, 2020 and December 31, 2019:
 
 
Asset Derivatives
 
Liability Derivatives
 
 
 
 
Fair Value as of
 
 
 
Fair Value as of
Description
 
Balance Sheet Location
 
6/30/2020
 
12/31/2019
 
Balance Sheet Location
 
6/30/2020
 
12/31/2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap contracts
 
Other assets
 
$
—

 
$
743

 
Other liabilities
 
$
13,058

 
$
3,436

Total derivatives designated
as hedging instruments
 
 
 
$
—

 
$
743

 
 
 
$
13,058

 
$
3,436
Schedule of effect of derivative financial instruments on the income statement
The table below presents the effect of the Company’s derivative financial instruments on the accompanying consolidated statements of comprehensive income for the three and six months ended June 30, 2020 and 2019.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Description
 
2020
 
2019
 
2020
 
2019
Change in fair value of derivatives and other recognized in Other Comprehensive Income ("OCI")
 
$
(1,187
)
 
$
4,368

 
$
(11,507
)
 
$
(1,537
)
Swap interest accruals reclassified to interest expense
 
1,042

 
32

 
1,133

 
41

Termination of interest rate swap payment recognized in OCI
 
—

 
(13,159
)
 
—

 
(13,159
)
Amortization of interest rate swap terminations (1)
 
427

 
166

 
855

 
268

Total change in OCI due to derivative financial instruments
 
$
282

 
$
(8,593
)
 
$
(9,519
)
 
$
(14,387
)
 
 
 
 
 
 
 
 
 
Interest expense presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded
 
$
27,168

 
$
27,068

 
$
54,951

 
$
54,129


(1) 
Represents amortization from OCI into interest expense.