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Financial Instruments and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable equity securities

 

$

21,668

 

 

$

—

 

 

$

—

 

 

$

33,284

 

 

$

—

 

 

$

—

 

Derivative financial instruments

 

 

—

 

 

 

40,338

 

 

 

—

 

 

 

—

 

 

 

28,989

 

 

 

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

—

 

 

 

(3,760

)

 

 

—

 

 

 

—

 

 

 

(8,892

)

 

 

—

 
Schedule realized and unrealized gain (loss) on marketable securities

The following table represents the realized and unrealized gain (loss) on marketable securities included in Realized and unrealized holding (losses) gains on investments and other on the Company's Condensed Consolidated Statements of Operations (in thousands):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Realized gain on marketable securities, net

$

3,586

 

 

$

—

 

 

$

7,580

 

 

$

—

 

Less: previously recognized unrealized gains on marketable securities sold during the period

 

(3,586

)

 

 

—

 

 

 

(7,580

)

 

 

—

 

Unrealized (losses) gains on marketable securities still held as of the end of the period and through the disposition date on marketable securities sold during the period

 

(2,020

)

 

 

1,713

 

 

 

(4,035

)

 

 

(346

)

(Loss) gain on marketable securities, net

$

(2,020

)

 

$

1,713

 

 

$

(4,035

)

 

$

(346

)
Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (information is as of June 30, 2024, unless otherwise noted, and dollars in thousands):

 

 

 

 

 

 

 

 

 

 

Strike Rate

 

 

 

Fair Value

 

Derivative
Instrument

 

Aggregate Notional Amount

 

 

Effective Date

 

Maturity Date

 

Low

 

 

High

 

Balance Sheet
Location

 

June 30,
2024

 

 

December 31,
2023

 

Core

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

175,000

 

 

Oct 2023

 

Jul 2027 - Jul 2029

 

4.59%

 

—

 

4.69%

 

Accounts payable and other liabilities

 

$

(3,760

)

 

$

(8,807

)

Interest Rate Swaps

 

 

681,000

 

 

May 2022 - May 2023

 

Mar 2025 - Jul 2030

 

1.98%

 

—

 

3.61%

 

Other Assets

 

 

34,303

 

 

 

22,675

 

 

 

$

856,000

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30,543

 

 

$

13,868

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund II

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swap

 

$

50,000

 

 

Jan 2023

 

Dec 2029

 

3.23%

 

—

 

3.23%

 

Other Assets

 

$

1,814

 

 

$

634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund III

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Cap

 

$

33,000

 

 

Sep 2023

 

Oct 2025

 

5.50%

 

—

 

5.50%

 

Other Assets

 

$

14

 

 

$

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund IV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Cap

 

$

54,500

 

 

Dec 2023

 

Dec 2025

 

6.00%

 

—

 

6.00%

 

Other Assets

 

$

14

 

 

$

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fund V

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Swaps

 

$

341,944

 

 

Apr 2022 - Mar 2024

 

Sep 2024- Dec 2027

 

1.14%

 

—

 

4.49%

 

Other Assets

 

$

3,981

 

 

$

5,523

 

Interest Rate Caps

 

 

72,164

 

 

Aug 2023 - Feb 2024

 

Jan 2025 - Sep 2025

 

4.50%

 

—

 

5.00%

 

Other Assets

 

 

212

 

 

 

102

 

Interest Rate Swaps

 

 

—

 

 

 

 

 

 

 

 

 

 

 

Accounts payable and other liabilities

 

 

—

 

 

 

(85

)

 

 

$

414,108

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,193

 

 

$

5,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

$

40,338

 

 

$

28,989

 

Total liability derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(3,760

)

 

$

(8,892

)

 
Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

 

 

 

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

Level

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes Receivable (a)

 

 

3

 

 

$

126,653

 

 

$

126,647

 

 

$

124,949

 

 

$

124,789

 

City Point Loan (a)

 

 

3

 

 

 

66,741

 

 

 

66,674

 

 

 

66,741

 

 

 

66,017

 

Mortgage and Other Notes Payable (a)

 

 

3

 

 

 

961,212

 

 

 

947,938

 

 

 

937,200

 

 

 

921,563

 

Investment in non-traded equity securities (b)

 

 

3

 

 

 

4,141

 

 

 

4,141

 

 

 

4,398

 

 

 

4,702

 

Unsecured notes payable and Unsecured line of credit (c)

 

 

2

 

 

 

746,446

 

 

 

746,873

 

 

 

943,887

 

 

 

937,153

 

 

(a)
The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and changes in interest rates. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment. Amounts exclude discounts and loan costs. The estimated market rates are between 5.00% to 14.00% for the Company's notes receivable and City Point Loan, and 5.52% to 8.37% for the Company's mortgage and other notes payable, depending on the attributes of the specific loans.
(b)
Includes the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).
(c)
The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.