Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, accounts payable, a revolving credit facility, senior unsecured notes, a mortgage note payable, amounts due to related persons, other accrued expenses and security deposits. At December 31, 2022 and 2021, the fair values of our financial instruments approximated their carrying values in our consolidated financial statements, due to their short term nature or floating interest rates, except as follows:


	As of December 31, 2022				As of December 31, 2021
Financial Instrument	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value
Senior unsecured notes, 4.00% interest rate, due in 2022 (2)	$	—	$	—	$	299,500	$	304,148
Senior unsecured notes, 4.25% interest rate, due in 2024	346,863		331,601		344,581		365,449
Senior unsecured notes, 4.50% interest rate, due in 2025	642,818		589,388		639,370		687,749
Senior unsecured notes, 2.650% interest rate, due in 2026	297,839		232,770		297,213		298,502
Senior unsecured notes, 2.400% interest rate, due in 2027	347,466		256,606		346,845		339,764
Senior unsecured notes, 3.450% interest rate, due in 2031	396,178		268,004		395,744		388,458
Senior unsecured notes, 6.375% interest rate, due in 2050	156,711		113,075		156,519		177,098
Mortgage notes payable (3)	49,917		49,099		98,178		100,294
Total	$	2,237,792	$	1,840,543	$	2,577,950	$	2,661,462

(1)Includes unamortized debt premiums, discounts and issuance costs totaling $24,208 and $32,351 as of December 31, 2022 and 2021, respectively.

(2)These senior notes were redeemed in June 2022.

(3)Balance as of December 31, 2021 includes a mortgage note secured by one property with an outstanding principal amount of $25,055 that was prepaid, at par plus accrued interest, in April 2022 and a mortgage note secured by one property with an outstanding principal balance of $23,246 that was prepaid, at a discounted amount of $22,176 plus accrued interest, in October 2022.

We estimated the fair values of our senior unsecured notes (except for our senior unsecured notes due 2050) using an average of the bid and ask price of the notes (Level 2 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair values of our senior unsecured notes due 2050 based on the closing price on Nasdaq (Level 1 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. We estimated the fair values of our mortgage notes payable using discounted cash flow analyses and currently prevailing market rates (Level 3 inputs as defined in the fair value hierarchy under GAAP) as of the measurement date. Because Level 3 inputs are unobservable, our estimated fair values may differ materially from the actual fair values.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details