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Derivatives and Hedging
 9 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging
Derivatives and Hedging
 
The Company employs interest rate swaps and caps to hedge against interest rate fluctuations. For derivative instruments designated as cash flow hedges, unrealized gains and losses on the effective portion are reported in accumulated other comprehensive income (loss), a component of shareholders’ equity.  Unrealized gains and losses on the ineffective portion of all designated hedges are recognized in earnings in the current period.  For derivative instruments not designated as hedging instruments, unrealized gains or losses are recognized in earnings in the current period.
 
At September 30, 2013, the fair value of interest rate swap assets of $2.8 million was included in prepaid expenses and other assets in the accompanying combined consolidated balance sheets.  At September 30, 2013 and December 31, 2012, the aggregate fair value of interest rate swap liabilities of $14.2 million and $0.5 million, respectively, was included in accounts payable and accrued expenses in the accompanying combined consolidated balance sheets.
 
As of September 30, 2013 and December 31, 2012, the Company had entered into the following interest rate swaps and caps (in thousands):
 
 
Notional value at
 
 
 
 
 
Fair value at
Hedge type
September 30, 2013
 
December 31, 2012
 
Hedge interest rate
 
Maturity
 
September 30, 2013
 
December 31, 2012
Swap-cash flow (1)
$
40,000

 
$
40,000

 
1.00%
 
10/6/2013
 
$
(31
)
 
$
(265
)
Swap-cash flow (1)
31,000

 
31,000

 
1.00%
 
10/6/2013
 
(24
)
 
(205
)
Interest rate cap (1)
—

 
60,000

 
1.00%
 
6/29/2013
 
—

 
—

Swap-cash flow (2)
275,000

 
—

 
1.12%
 
11/20/2017
 
2,765

 
—

Swap-cash flow (2)
175,000

 
—

 
1.56%
 
3/6/2018
 
(2,792
)
 
—

Swap-cash flow (2)
175,000

 
—

 
1.64%
 
3/6/2018
 
(3,362
)
 
—

Swap-cash flow (2)
16,500

 
—

 
1.83%
 
9/15/2018
 
(354
)
 
—

Swap-cash flow (2)
16,500

 
—

 
1.75%
 
9/15/2018
 
(294
)
 
—

Swap-cash flow (2)
40,500

 
—

 
1.83%
 
9/15/2018
 
(869
)
 
—

Swap-cash flow (2)
41,500

 
—

 
1.75%
 
9/15/2018
 
(740
)
 
—

Swap-cash flow (2)
18,000

 
—

 
1.83%
 
9/15/2018
 
(386
)
 
—

Swap-cash flow (2)
17,000

 
—

 
1.75%
 
9/15/2018
 
(303
)
 
—

Swap-cash flow (2)
125,000

 
—

 
2.02%
 
3/6/2019
 
(3,054
)
 
—

Swap-cash flow (2)
100,000

 
—

 
1.94%
 
3/6/2019
 
(2,040
)
 
—

 
$
1,071,000

 
$
131,000

 
 
 
 
 
$
(11,484
)
 
$
(470
)
 
 
 

1.
Not designated as a cash flow hedge
2.
Designated as a cash flow hedge

 
As of September 30, 2013 and December 31, 2012, there was approximately $11.4 million and zero, respectively, in unrealized losses included in accumulated other comprehensive income related to interest rate hedges that are effective in offsetting the variable cash flows.  There was no ineffectiveness recorded on designated hedges during the three and nine month periods ended September 30, 2013 and 2012.