Financial Instruments and Fair Values (Tables)

3 Months Ended

Mar. 31, 2019

Summary of the terms of the agreement and the fair value of derivative financial instrument

The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of March 31, 2019 and December 31, 2018 (dollar amounts in thousands):



							March 31, 2019					December 31, 2018
Derivative	Notional Amount		Receive Rate	Pay Rate	Effective Date	Expiration Date	Asset		Liability			Asset		Liability
Interest rate swap	$	265,000	1 Month LIBOR	2.1485%	August 31, 2017	August 24, 2022	$	3	$	—		$	2,536	$	—
Interest rate swap	125,000		3 Month LIBOR	2.9580%	July 1, 2019	July 1, 2026	—		(5,168		)	—		(2,623		)
Interest rate swap	125,000		3 Month LIBOR	2.9580%	July 1, 2019	July 1, 2026	—		(5,168		)	—		(2,620		)
							$	3	$	(10,336	)	$	2,536	$	(5,243	)

Effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss)

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018 (amounts in thousands):



	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2019			March 31, 2018
Amount of gain (loss) recognized in other comprehensive income (loss)	$	(7,390	)	$	4,180
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	(149		)	(599		)

The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated statements of income for the three months ended March 31, 2019 and 2018 (amounts in thousands):



	Three Months Ended
Effects of Cash Flow Hedges	March 31, 2019			March 31, 2018
Total interest (expense) presented in the condensed consolidated statements of income in which the effects of cash flow hedges are recorded	$	(20,689	)	$	(17,591	)
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense	(149		)	(599		)

Summary carrying and estimated fair values of our financial instruments

The following tables summarize the carrying and estimated fair values of our financial instruments as of March 31, 2019 and December 31, 2018 (amounts in thousands):



	March 31, 2019
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	3	$	3	$	—	$	3	$	—
Interest rate swaps included in accounts payable and accrued expenses	10,336		10,336		—		10,336		—
Mortgage notes payable	607,823		609,901		—		—		609,901
Senior unsecured notes - Exchangeable	248,745		248,750		—		248,750		—
Senior unsecured notes - Series A, B, C, D, E and F	798,333		813,490		—		—		813,490
Unsecured term loan facility	264,271		265,000		—		—		265,000
Ground lease liabilities	29,452		29,452		—		—		29,452



	December 31, 2018
			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Interest rate swaps included in prepaid expenses and other assets	$	2,536	$	2,536	$	—	$	2,536	$	—
Interest rate swaps included in accounts payable and accrued expenses	5,243		5,243		—		5,243		—
Mortgage notes payable	608,567		597,424		—		—		597,424
Senior unsecured notes - Exchangeable	247,930		250,625		—		250,625		—
Senior unsecured notes - Series A, B, C, D, E and F	798,289		795,662		—		—		795,662
Unsecured term loan facility	264,147		265,000		—		—		265,000