Derivatives (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of September 30, 2023, the information related to these offsetting arrangements were as follows (in thousands):


Instrument Description	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet		Notional Amount (1)
Assets:
Derivatives designated as hedging instruments	$	170,712	$	(6)	$	170,706	$	1,758,578
Derivatives not designated as hedging instruments	88,211		—		88,211		1,856,690
Total derivative assets	$	258,923	$	(6)	$	258,917	$	3,615,268

Liabilities:
Derivatives designated as hedging instruments	$	(6)	$	6	$	—	$	—
Derivatives not designated as hedging instruments	—		—		—		—
Total derivative liabilities	$	(6)	$	6	$	—	$	—
Total	$	258,917	$	—	$	258,917	$	3,615,268

(1) Comprised of 75 interest rate swaps which effectively fix the SOFR portion of interest rates on outstanding balances of certain loans under the senior and securitized sections of the debt footnote table (see Note 8, Indebtedness) at 0.31% to 3.78% per annum. These swaps mature from April 30, 2024 to January 31, 2043.

As of December 31, 2022, the information related to these offsetting arrangements were as follows (in thousands):


Instrument Description	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet		Notional Amount
Assets:
Derivatives designated as hedging instruments	$	133,168	$	—	$	133,168	$	2,122,222
Derivatives not designated as hedging instruments	44,659		(4,523)		40,136		1,095,820
Total derivative assets	$	177,827	$	(4,523)	$	173,304	$	3,218,042

Liabilities:
Derivatives designated as hedging instruments	(3,724)		—		(3,724)		—
Derivatives not designated as hedging instruments	(4,523)		4,523		—		—
Total derivative liabilities	$	(8,247)	$	4,523	$	(3,724)	$	—
Total	$	169,580	$	—	$	169,580	$	3,218,042

Schedule of Offsetting Liabilities

As of September 30, 2023, the information related to these offsetting arrangements were as follows (in thousands):


Instrument Description	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet		Notional Amount (1)
Assets:
Derivatives designated as hedging instruments	$	170,712	$	(6)	$	170,706	$	1,758,578
Derivatives not designated as hedging instruments	88,211		—		88,211		1,856,690
Total derivative assets	$	258,923	$	(6)	$	258,917	$	3,615,268

Liabilities:
Derivatives designated as hedging instruments	$	(6)	$	6	$	—	$	—
Derivatives not designated as hedging instruments	—		—		—		—
Total derivative liabilities	$	(6)	$	6	$	—	$	—
Total	$	258,917	$	—	$	258,917	$	3,615,268

As of December 31, 2022, the information related to these offsetting arrangements were as follows (in thousands):


Instrument Description	Gross Amounts of Recognized Assets / Liabilities		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets / Liabilities Included in the Consolidated Balance Sheet		Notional Amount
Assets:
Derivatives designated as hedging instruments	$	133,168	$	—	$	133,168	$	2,122,222
Derivatives not designated as hedging instruments	44,659		(4,523)		40,136		1,095,820
Total derivative assets	$	177,827	$	(4,523)	$	173,304	$	3,218,042

Liabilities:
Derivatives designated as hedging instruments	(3,724)		—		(3,724)		—
Derivatives not designated as hedging instruments	(4,523)		4,523		—		—
Total derivative liabilities	$	(8,247)	$	4,523	$	(3,724)	$	—
Total	$	169,580	$	—	$	169,580	$	3,218,042

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The gains on derivatives designated as cash flow hedges recognized into OCI, before tax effect, consisted of the following (in thousands):


	Three months ended September 30,
	2023		2022
Derivatives designated as cash flow hedges:
Interest rate swaps	$	(79,261)	$	(60,900)


	Nine months ended September 30,
	2023		2022
Derivatives designated as cash flow hedges:
Interest rate swaps	$	(92,306)	$	(171,664)

The gains (losses) on derivatives financial instruments recognized into the consolidated statements of operations, before tax effect, consisted of the following (in thousands):


	Three months ended September 30,
	2023				2022
	Interest expense, net		Other expense, net		Interest expense, net		Other expense, net
Derivatives designated as cash flow hedges:
Interest rate swaps:
Gains reclassified from AOCI into income	$	(10,274)	$	—	$	(7,887)	$	—
Derivatives not designated as cash flow hedges:
Interest rate swaps:
Gains recognized into income	—		(81,461)		—		(71,825)
Total gains	$	(10,274)	$	(81,461)	$	(7,887)	$	(71,825)


	Nine months ended September 30,
	2023				2022
	Interest expense, net		Other expense, net		Interest expense, net		Other expense, net
Derivatives designated as cash flow hedges:
Interest rate swaps:
(Gains) losses reclassified from AOCI into income	$	(26,345)	$	—	$	1,025	$	—
Derivatives not designated as cash flow hedges:
Interest rate swaps:
Gains recognized into income	—		(99,133)		—		(192,838)
Total (gains) losses	$	(26,345)	$	(99,133)	$	1,025	$	(192,838)