Fair Value of Derivative and Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Summary of Company's Outstanding Interest Rate Swaps

As of March 31, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Effective Date	Termination Date	Counterparty	Notional Amount		Fixed Rate (1)
April 1, 2017	April 1, 2022	KeyBank	$	100,000		1.9570	%
May 1, 2017	April 1, 2022	KeyBank		50,000		1.9610	%
July 1, 2017	July 1, 2022	KeyBank		100,000		1.7820	%
June 1, 2019	June 1, 2024	KeyBank		50,000		2.0020	%
June 1, 2019	June 1, 2024	Truist		50,000		2.0020	%
September 1, 2019	September 1, 2026	KeyBank		100,000		1.4620	%
September 1, 2019	September 1, 2026	KeyBank		125,000		1.3020	%
January 3, 2020	September 1, 2026	KeyBank		92,500		1.6090	%
March 4, 2020	June 1, 2026	Truist		100,000		0.8200	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.8450	%
June 1, 2021	September 1, 2026	KeyBank		200,000		0.9530	%
March 1, 2022	March 1, 2025	Truist		145,000		0.5730	%
March 1, 2022	March 1, 2025	Truist		105,000		0.6140	%
			$	1,417,500		1.2128	%	(2)

(1)	The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2022, one-month LIBOR was 0.452%.

(2)	Represents the weighted average fixed rate of the interest rate swaps.

As of March 31, 2022, the Company had the following outstanding interest rate swaps that were designated as cash flow hedges of interest rate risk with future effective dates (dollars in thousands):

Effective Date

Termination Date

Counterparty

Notional Amount

Fixed Rate (1)

September 1, 2026

January 1, 2027

KeyBank

92,500

1.7980

(1)	The floating rate option for the interest rate swaps is one-month LIBOR. As of March 31, 2022, one-month LIBOR was 0.452%.

(2)	Represents the weighted average fixed rate of the interest rate swaps.

Schedule of Outstanding Interest Rate Derivatives

As of March 31, 2022 and 2021, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships (dollars in thousands):

As of March 31,

Number of

Instruments

Notional Amount

2022

458,846

2021

379,406

Summary of Derivative Financial Instruments and Classification on the Consolidated Balance Sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of March 31, 2022 and December 31, 2021 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance Sheet Location	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivatives designated as hedging instruments:
Interest rate swaps	Fair market value of interest rate swaps	$	58,350	$	11,045	$	246	$	7,519

Derivatives not designated as hedging instruments:
Interest rate caps	Prepaid and other assets		1,453		263		—		—
Total		$	59,803	$	11,308	$	246	$	7,519

Summary of Derivative Financial Instruments on Consolidated Statements of Operations and Comprehensive Income

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and comprehensive income for the three months ended March 31, 2022 and 2021 (in thousands):

	Amount of gain (loss) recognized in OCI				Location of gain (loss) reclassified from accumulated	Amount of gain (loss) reclassified from OCI into income
	2022		2021		OCI into income	2022			2021
Derivatives designated as hedging instruments:
For the three months ended March 31,
Interest rate products	$	51,017	$	27,679	Interest expense	$	(3,562	)	$	(3,663	)

	Location of gain (loss)	Amount of gain (loss) recognized in income
	recognized in income	2022		2021
Derivatives not designated as hedging instruments:
For the three months ended March 31,
Interest rate products	Interest expense	$	1,184	$	12

Schedule of Carrying Value and Estimated Fair Value of Debt Instruments

The table below presents the carrying value and estimated fair value of our debt at March 31, 2022 and December 31, 2021 (in thousands):

	March 31, 2022				December 31, 2021
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Fixed rate debt	$	69,079	$	68,962	$	69,285	$	71,141
Floating rate debt (1)	$	1,546,686	$	1,635,044	$	1,491,861	$	1,525,298

(1)	Includes balances outstanding under our Corporate Credit Facility.