Derivative Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedges, Assets [Abstract]

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

The Company has entered into several interest rate cap and swap contracts in connection with certain of its secured mortgage loans in order to limit its exposure against the variability of future interest rates on its variable interest rate borrowings.  The Company’s interest rate contracts have economically limited the interest rate on the loan to which they relate.  The Company has not designated these derivatives as hedges for accounting purposes. The Company has not entered into a master netting arrangement with its third-party counterparty and does not offset on its Condensed Consolidated Balance Sheets the fair value amount recorded for its derivative instruments.

The Company has also entered into foreign currency forward contracts as economic hedges against the variability of foreign exchange rates related to certain cash flows of some of its international investments. These forward contracts fixed the currency exchange rates on each of the investments to which they related. The Company did not designate any of these contracts as fair value or cash flow hedges for accounting purposes.

The table below provides additional information regarding the Company’s interest rate contracts as of September 30, 2020 (in thousands, except percentages).

Interest Rate Contracts
Type	Property	Effective Date	Expiration Date	Maximum Capacity of Debt in Functional Currency			Notional Amount		Interest Rate Received	Pay Rate /Strike Rate
Interest rate cap	Montrose Student Residences	March 24, 2017	March 23, 2022	€	22,605		€	16,954	Euribor	1.25	%
Interest rate cap	Queen’s Court Student Residences	December 20, 2017	December 20, 2020	£	29,500		£	22,125	LIBOR	2.00	%
Interest rate cap	Venue Museum District	September 21, 2018	October 9, 2020	$	45,000		$	45,000	LIBOR	3.50	%
Interest rate cap	Fresh Park Venlo	October 8, 2018	August 15, 2023	€	75,000		€	52,487	Euribor	2.00	%
Interest rate cap	Maintal Logistics	February 28, 2019	February 28, 2024	€	23,500		€	16,450	Euribor	2.00	%
Interest rate cap	ABC Westland	May 3, 2019	February 15, 2024	€	75,000		€	52,500	Euribor	1.00	%
Interest rate swap	Łódź Urban Logistics	October 10, 2019	September 20, 2024	€	13,600		€	13,600	Euribor	(0.36)	%
Interest rate swap	Gdańsk PL II	October 10, 2019	September 20, 2024	€	16,800		€	16,800	Euribor	(0.36)	%
Interest rate cap	Glasgow West End	September 27, 2019	September 24, 2024	£	43,200		£	32,400	LIBOR	2.00	%
Interest rate cap	Charles Tyrwhitt	July 2, 2020	July 2, 2023	£	9,598	(1)	£	9,598	LIBOR	1.50	%
Interest rate cap	DSG Bristol	July 2, 2020	July 2, 2023	£	20,240	(1)	£	20,240	LIBOR	1.50	%
Interest rate cap	Royal Mail	July 2, 2020	July 2, 2023	£	13,970	(1)	£	13,970	LIBOR	1.50	%
Interest rate cap	Wakefield Logistics	July 2, 2020	July 2, 2023	£	11,330	(1)	£	11,330	LIBOR	1.50	%

(1)Represents an allocation of a total maximum capacity of £55.1 million borrowed under one facility agreement. See Note 4—Debt Financing for more information on the borrowing.

The table below provides additional information regarding the Company’s foreign currency forward contracts that were active during the three and nine months ended September 30, 2020 (in thousands).

Foreign Currency Forward Contracts
Effective Date	Expiration Date	Notional Amount		Buy/Sell	Traded Currency Rate
October 24, 2019	February 28, 2020	£	31,000	USD/GBP	$	1.29
December 9, 2019	February 28, 2020	£	15,000	USD/GBP	$	1.32
February 21, 2020	May 29, 2020	£	31,000	USD/GBP	$	1.30
February 21, 2020	May 29, 2020	£	15,000	USD/GBP	$	1.30
March 2, 2020	April 30, 2020	€	60,000	USD/EUR	$	1.12
March 10, 2020	April 30, 2020	€	50,000	USD/EUR	$	1.14
May 27, 2020	June 30, 2020	£	31,000	USD/GBP	$	1.23
May 27, 2020	June 30, 2020	£	15,000	USD/GBP	$	1.23
June 26, 2020	July 15, 2020	£	32,500	USD/GBP	$	1.24

The table below presents the effects of the changes in fair value of the Company’s derivative instruments in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Gain (Loss) on Derivative Instruments
	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Derivatives not designated as hedging instruments:
Interest rate swaps	$	68	$	—	$	416	$	—
Interest rate caps	(64)		(97)		(138)		(408)
Foreign currency forward contracts	(871)		—		7,324		(876)
Total gain (loss) on derivatives	$	(867)	$	(97)	$	7,602	$	(1,284)