Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of fair value by balance sheet groupings

We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable and commercial paper borrowings, term loan and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions):

September 30, 2021	Carrying value		Estimated fair value
Mortgages payable assumed in connection with acquisitions (1)	$	285.6	$	297.9
Notes and bonds payable (2)	$	8,353.0	$	9,000.5

December 31, 2020	Carrying value		Estimated fair value
Mortgages payable assumed in connection with acquisitions (1)	$	299.6	$	309.4
Notes and bonds payable (2)	$	8,302.4	$	9,324.0

(1)Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $933,000 at September 30, 2021, and $1.7 million at December 31, 2020. Also excludes deferred financing costs of $865,000 at September 30, 2021 and $973,000 at December 31, 2020.

(2)Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was approximately $7.2 million at September 30, 2021, and $14.6 million at December 31, 2020. Also excludes deferred financing costs of $51.0 million at September 30, 2021 and $49.2 million at December 31, 2020.

Schedule of derivative financial instruments

The following table summarizes the terms and fair values of our derivative financial instruments at September 30, 2021 and December 31, 2020 (dollars in millions):

Derivative Type (1)	Number of Instruments (2)	Accounting Classification	Hedge Designation	Notional Amount				Weighted Average Strike Rate (3)	Maturity Date (4)	Fair Value - asset (liability)
				September 30,		December 31,				September 30,		December 31,
				2021		2020				2021		2020
Interest rate swap	1	Derivative	Cash flow	$	250.0	$	250.0	3.04%	03/2024	$	(16.1)	$	(22.6)
Cross-currency swaps (5)	4	Derivative	Cash flow	166.4		166.4		(6)	05/2034	(10.4)		(21.4)
Currency exchange swaps (5)	2	Derivative	N/A	1,179.3		625.0		(7)	10/2021	16.4		(8.2)
Forward-starting swaps (8)	4	Derivative	Cash flow	300.0		300.0		1.86%	11/2032 - 06/2033	(0.8)		(16.5)
Forward-starting swaps (8)	2	Hybrid debt	Cash flow	200.0		200.0		1.93%	11/2032 - 06/2033	(3.8)		(12.8)
Foreign currency collars (9)	4	Derivative	N/A	100.0		—		1.39	10/2021 - 12/2021	(0.1)		—
Foreign currency forwards	35	Derivative	Cash flow	184.3		—		(10)	10/2021 - 08/2024	8.5		—
				$	2,380.0	$	1,541.4			$	(6.3)	$	(81.5)

(1)There have been no changes to hedging arrangements in-place at December 31, 2020. All hedges remained effective through September 30, 2021. For full discussion of the hedging arrangements, please refer to note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020.

(2)This column represents the number of instruments outstanding as of September 30, 2021.

(3)Weighted average strike rate is calculated using the current notional value as of September 30, 2021.

(4)This column represents maturity dates for instruments outstanding as of September 30, 2021.

(5)Represents five British Pound Sterling, or GBP currency instruments with notional amount of $1,173.1 million and one Euro, or EUR currency instrument with notional amount of $172.6 million.

(6)GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD weighted average fixed rate at 9.78%.

(7) Forward GBP-USD exchange rate of 1.37 and Forward EUR-USD exchange rate of 1.18.

(8) There were five treasury rate locks entered into during February 2020 that were terminated in June 2020 and converted into six forward starting interest rate swaps through a cashless settlement. For full discussion of the hedging arrangements for these six forward starting swaps, please refer to Note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020.

(9) Represents GBP-USD foreign currency collars.

(10) Weighted average forward GBP-USD exchange rate of 1.41.