Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

8. Derivative Instruments and Hedging Activities

Prior to August 2024, we had interest rate swap agreements with an aggregate notional amount of $500,000,000 to fix SOFR at 0.49% through August 2024. We also had interest rate cap agreements with an aggregate notional amount of $360,000,000 to cap SOFR at 4.50% through August 2024. In August 2024, upon the expiration of these agreements, we entered into new interest rate cap agreements with an aggregate notional amount of $860,000,000 to cap SOFR at 3.50% through August 2025. These interest rate swaps and interest rate caps are designated as cash flow hedges and therefore changes in their fair values are recognized in other comprehensive income or loss (outside of earnings). We recognized other comprehensive losses of $12,433,000 and $25,444,000 for the years ended December 31, 2024 and 2023, respectively, and other comprehensive income of $31,839,000 for the year ended December 31, 2022, from the changes in the fair value of these derivative financial instruments, which are recorded as a component of other comprehensive income (loss) in our consolidated financial statements. See Note 10, Accumulated Other Comprehensive Income. During the next twelve months, we estimate that $665,000 of the amounts to be recognized in accumulated other comprehensive (loss) income will be reclassified as a decrease to interest expense.

The tables below provide additional details on our interest rate swaps and interest rate caps that are designated as cash flow hedges.

Notional

Effective

Maturity

Benchmark

Strike

Fair Value as of

Property

Amount

Date

Date

Rate

Rate

December 31, 2024

December 31, 2023

(Amounts in thousands)

1301 Avenue of the Americas

$

500,000

Jul-2021

Aug-2024

SOFR

0.49

%

$

-

$

13,726

Total interest rate swap assets designated as cash flow hedges (included in "other assets")

$

-

$

13,726

	Notional		Effective	Maturity	Benchmark	Strike			Fair Value as of
Property	Amount		Date	Date	Rate	Rate			December 31, 2024		December 31, 2023
(Amounts in thousands)
1301 Avenue of the Americas	$	860,000	Aug-2024	Aug-2025	SOFR		3.50	%	$	3,650	$	-
1301 Avenue of the Americas		360,000	Aug-2023	Aug-2024	SOFR		4.50	%		-		1,263
Total interest rate cap assets designated as cash flow hedges (included in "other assets")									$	3,650	$	1,263