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Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Certain of the Company’s financing transactions expose the Company to interest rate risks, which include exposure to variable interest rates on certain unsecured loans and loans secured by the Company’s real estate. The Company uses derivative financial instruments to minimize the risks and/or costs associated with the Company’s financing and to limit the Company’s exposure to the future variability of interest rates. To mitigate this risk, the Company enters into derivative financial instruments with counterparties it believes to have appropriate credit ratings and that are major financial institutions with which the Company and its affiliates may also have other financial relationships.
The Company’s objective in using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate fluctuations. To accomplish this objective, we use interest rate swap and interest rate cap contracts to manage our exposure on the variable rate interest debt. The Company has designated its derivative financial instruments as cash flow hedges as defined under GAAP as of June 30, 2023.
Changes in the fair value of cash flow hedges are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income for our interest rate swap and interest rate caps will be reclassified to interest expense as interest payments are made on the Company’s mortgages and term loan credit facility. Refer to Note 2 for additional detail.
The following table details the Company’s outstanding interest rate derivative that is designated as a cash flow hedge of interest rate risk:
Notional Amount
Financial InstrumentsMaturity DateJune 30, 2023December 31, 2022
Interest rate swap8/11/2027$950,000 $700,000 
Interest rate swap1/6/202846,779 — 
Interest rate cap9/15/2023221,405 221,405 
Interest rate cap9/9/2023347,438 347,438 
$1,565,622 $1,268,843 
The fair value of our derivative financial instruments as well as their classification on our Condensed Consolidated Balance Sheet as of June 30, 2023 is detailed below.
Fair Value
Balance Sheet
Location		June 30, 2023December 31, 2022
Derivative Assets:
Derivative instruments designated as hedging instruments - interest rate swapOther Assets$17,841 $4,379 
Derivative instruments designated as hedging instruments - interest rate capsOther Assets2,562 7,387 
Total$20,403 $11,766 
The following table details the effect of the Company’s derivative financial instrument on the Condensed Consolidated Statement of Operations during the three months ended June 30, 2023:
Amount of
Unrealized Gain
(Loss) Recognized
in OCI		Location of Gain
(Loss) Recognized in
Income on Derivatives		Amount of Gain (Loss)
Reclassified from
Accumulated OCI into Income
June 30, 2023June 30, 2023
Interest rate swap$22,361 Interest Expense$(2,138)
Interest rate caps(2,125)Interest Expense(2,217)
Total$20,236 $(4,355)
The following table details the effect of the Company’s derivative financial instrument on the Condensed Consolidated Statement of Operations during the six months ended June 30, 2023:
Amount of
Unrealized Gain
(Loss) Recognized
in OCI		Location of Gain
(Loss) Recognized in
Income on Derivatives		Amount of Gain (Loss)
Reclassified from
Accumulated OCI into Income
June 30, 2023June 30, 2023
Interest rate swap$8,102 Interest Expense$(5,317)
Interest rate caps(5,084)Interest Expense(5,266)
Total$3,018 $(10,583)