FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2022

FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS

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, 2022 and December 31, 2021, are summarized as follows (dollars in thousands):

					Fair Value at June 30, 2022, 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
	2022 (a)		2022		(Level 1)		(Level 2)		(Level 3)
Description:
Notes receivable, net (b)	$	37,548	$	38,281	$	—	$	—	$	38,281
Equity securities (c)		12,466		12,466		12,466		—		—
Derivatives - Interest rate contracts (d)		11,760		11,760		—		11,760		—
Total assets	$	61,774	$	62,507	$	12,466	$	11,760	$	38,281
Secured debt instruments - fixed rate: (e)
Mortgage notes payable	$	1,030,973	$	956,547	$	—	$	—	$	956,547
Secured debt instruments - variable rate: (e)
Tax-exempt secured notes payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (e)
Working capital credit facility		30,927		30,927		—		—		30,927
Commercial paper program		325,000		325,000		—		—		325,000
Unsecured notes		4,132,065		3,588,514		—		—		3,588,514
Total liabilities	$	5,545,965	$	4,927,988	$	—	$	—	$	4,927,988
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (f)	$	1,013,165	$	1,013,165	$	—	$	1,013,165	$	—

					Fair Value at December 31, 2021, 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
	2021 (a)		2021		(Level 1)		(Level 2)		(Level 3)
Description:
Notes receivable, net (b)	$	26,860	$	27,372	$	—	$	—	$	27,372
Equity securities (c)		3,230		3,230		—		—		3,230
Derivatives - Interest rate contracts (d)		3,279		3,279		—		3,279		—
Total assets	$	33,369	$	33,881	$	—	$	3,279	$	30,602
Secured debt instruments - fixed rate: (e)
Mortgage notes payable	$	1,033,764	$	1,032,582	$	—	$	—	$	1,032,582
Secured debt instruments - variable rate: (e)
Tax-exempt secured notes payable		27,000		27,000		—		—		27,000
Unsecured debt instruments: (e)
Working capital credit facility		29,546		29,546		—		—		29,546
Commercial paper program		220,000		220,000		—		—		220,000
Unsecured notes		4,133,083		4,199,363		—		—		4,199,363
Total liabilities	$	5,443,393	$	5,508,491	$	—	$	—	$	5,508,491
Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (f)	$	1,299,442	$	1,299,442	$	—	$	1,299,442	$	—

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

(b) See Note 2, Significant Accounting Policies.

(c) The Company holds a direct investment in a publicly traded real estate technology company, SmartRent, that was previously subject to a lock-up restriction on selling or transferring the investment, which expired in February 2022. The investment is valued at the market price on June 30, 2022 and as of December 31, 2021, was valued at the market price on December 31, 2021 less an illiquidity discount of 15.0%. Since the lock-up restriction expired, the Company currently classifies the investment as Level 1 in the fair value hierarchy. The Company previously classified the investment as Level 3 in the fair value hierarchy based upon the lock-up restriction. During the six months ended June 30, 2022, the Company increased its direct investment in SmartRent due to stock distributions from its unconsolidated real estate technology investments.

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

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

(f) See Note 9, Noncontrolling Interests.