FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (UNITED DOMINION REALTY, L.P.) (Tables)

6 Months Ended

Jun. 30, 2020

Entity information

Schedule of estimated fair values

The estimated fair values of the Company’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2020 and December 31, 2019, are summarized as follows (dollars in thousands):

					Fair Value at June 30, 2020, Using
	Total				Quoted
	Carrying				Prices in
	Amount in				Active
	Statement of				Markets		Significant
	Financial		Fair Value		for Identical		Other		Significant
	Position at		Estimate at		Assets or		Observable		Unobservable
	June 30,		June 30,		Liabilities		Inputs		Inputs
	2020 (a)		2020		(Level 1)		(Level 2)		(Level 3)
Description:
Notes receivable, net (b)	$	155,956	$	166,009	$	—	$	—	$	166,009
Derivatives - Interest rate contracts (b)		8		8		—		8		—
Total assets	$	155,964	$	166,017	$	—	$	8	$	166,009
Derivatives - Interest rate contracts (c)	$	2,414	$	2,414	$	—	$	2,414	$	—
Secured debt instruments - fixed rate: (d)
Mortgage notes payable		874,177		911,356		—		—		911,356
Credit facilities		213,857		214,374		—		—		214,374
Secured debt instruments - variable rate: (d)
Tax-exempt secured notes payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (d)
Working capital credit facility		17,180		17,180		—		—		17,180
Commercial paper program		185,000		185,000		—		—		185,000
Unsecured notes		3,474,243		3,701,850		—		—		3,701,850
Total liabilities	$	4,793,871	$	5,059,174	$	—	$	2,414	$	5,056,760
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (e)	$	834,466	$	834,466	$	—	$	834,466	$	—

					Fair Value at December 31, 2019, Using
	Total				Quoted
	Carrying				Prices in
	Amount in				Active
	Statement of				Markets		Significant
	Financial		Fair Value		for Identical		Other		Significant
	Position at		Estimate at		Assets or		Observable		Unobservable
	December 31,		December 31,		Liabilities		Inputs		Inputs
	2019 (a)		2019		(Level 1)		(Level 2)		(Level 3)
Description:
Notes receivable, net (b)	$	153,650	$	160,197	$	—	$	—	$	160,197
Derivatives - Interest rate contracts (c)		6		6		—		6		—
Total assets	$	153,656	$	160,203	$	—	$	6	$	160,197
Derivatives - Interest rate contracts (c)	$	142	$	142	$	—	$	142	$	—
Secured debt instruments - fixed rate: (d)
Mortgage notes payable		906,228		898,329		—		—		898,329
Credit facilities		218,490		213,661		—		—		213,661
Secured debt instruments - variable rate: (d)
Tax-exempt secured notes payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (d)
Working capital credit facility		16,583		16,583		—		—		16,583
Commercial paper program		300,000		300,000		—		—		300,000
Unsecured notes		3,263,152		3,397,622		—		—		3,397,622
Total liabilities	$	4,731,595	$	4,853,337	$	—	$	142	$	4,853,195
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (e)	$	1,018,665	$	1,018,665	$	—	$	1,018,665	$	—

(a) Balances include fair market value adjustments and exclude deferred financing costs.

(b) See Note 2, Significant Accounting Policies.

(c) See Note 11, Derivatives and Hedging Activity.

(d) See Note 7, Secured and Unsecured Debt, Net.

(e) See Note 9, Noncontrolling Interests.

United Dominion Realty L.P.

Entity information

Schedule of estimated fair values

The estimated fair values of the Operating Partnership’s financial instruments either recorded or disclosed on a recurring basis as of June 30, 2020 and December 31, 2019 are summarized as follows (dollars in thousands):

					Fair Value at June 30, 2020, Using
	Total				Quoted
	Carrying				Prices in
	Amount in				Active
	Statement of				Markets		Significant
	Financial		Fair Value		for Identical		Other		Significant
	Position at		Estimate at		Assets or		Observable		Unobservable
	June 30,		June 30,		Liabilities		Inputs		Inputs
	2020 (a)		2020		(Level 1)		(Level 2)		(Level 3)
Description:
Derivatives- Interest rate contracts (b)	$	8	$	8	$	—	$	8	$	—
Total assets	$	8	$	8	$	—	$	8	$	—
Secured debt instrument - fixed rate: (c)
Mortgage note payable	$	72,500	$	78,009	$	—	$	—	$	78,009
Secured debt instrument - variable rate: (c)
Tax-exempt secured note payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (d)
Notes payable due to the General Partner		655,619		655,619		—		—		655,619
Total liabilities	$	755,119	$	760,628	$	—	$	—	$	760,628

					Fair Value at December 31, 2019, Using
					Quoted
	Total				Prices in
	Carrying				Active
	Amount in				Markets
	Statement of				for Identical		Significant
	Financial		Fair Value		Assets		Other		Significant
	Position at		Estimate at		or		Observable		Unobservable
	December 31,		December 31,		Liabilities		Inputs		Inputs
	2019 (a)		2019		(Level 1)		(Level 2)		(Level 3)
Description:
Secured debt instruments - fixed rate: (c)
Mortgage notes payable	$	72,500	$	71,976	$	—	$	—	$	71,976
Secured debt instrument - variable rate: (c)
Tax-exempt secured note payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (d)
Notes payable due to the General Partner		637,233		637,233		—		—		637,233
Total liabilities	$	736,733	$	736,209	$	—	$	—	$	736,209

(a) Balances exclude deferred financing costs.

(b) See Note 9, Derivatives and Hedging Activity.

(c) See Note 6, Debt, Net.

(d) See Note 7, Related Party Transactions.