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Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Schedule of fair value by balance sheet groupings | The fair value of our financial instruments not carried at fair value are disclosed as follows (in millions):
March 31, 2023 | Carrying value |  | Estimated fair value
Mortgages payable assumed in connection with acquisitions (1) | $ | 842.1 |  | $ | 820.0 |
Notes and bonds payable (2) | $ | 15,296.7 |  | $ | 13,833.5 |
December 31, 2022 | Carrying value |  | Estimated fair value
Mortgages payable assumed in connection with acquisitions (1) | $ | 842.3 |  | $ | 810.4 |
Notes and bonds payable (2) | $ | 14,114.2 |  | $ | 12,522.8 |
(1)Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $9.2 million at March 31, 2023, and $12.4 million at December 31, 2022. Also excludes deferred financing costs of $0.7 million at March 31, 2023, and $0.8 million at December 31, 2022. (2)Excludes non-cash premiums and discounts recorded on notes payable. The unamortized balance of the net premiums was $200.0 million at March 31, 2023, and $224.6 million at December 31, 2022. Also excludes deferred financing costs of $66.3 million and basis adjustment on interest rate swaps designated as fair value hedges of $0.4 million at March 31, 2023, and $60.7 million of deferred financing costs at December 31, 2022.
Schedule of provisions for impairment | The following table summarizes our provisions for impairment on real estate investments during the periods indicated below (dollars in millions):
|  |  | Three months ended March 31,
|  |  |  |  | 2023 |  | 2022 |  |
Carrying value prior to impairment |  |  |  |  | $ | 35.6 |  |  | $ | 44.8 |  |  |
Less: total provisions for impairment |  |  |  |  | (13.2) |  |  | (7.0) |  |  |
Carrying value after impairment |  |  |  |  | $ | 22.4 |  |  | $ | 37.8 |  |  |
Schedule of gain (loss) recognized on derivatives in other comprehensive income | The following table summarizes the amount of unrecognized gain (loss) on derivatives in other comprehensive income (in thousands):
|  |  |  | Three months ended March 31,
Derivatives in Cash Flow Hedging Relationships |  |  |  |  |  | 2023 |  | 2022 |  |
Currency swaps |  |  |  |  |  | $ | — |  |  | $ | 1,895 |  |  |
Interest rate swaps |  |  |  |  |  | (1,720) |  |  | 39,005 |  |  |
Foreign currency forwards |  |  |  |  |  | (5,113) |  |  | 2,790 |  |  |
Interest rate swaption |  |  |  |  |  | (1,287) |  |  | — |  |  |
Total derivatives in cash flow hedging relationships |  |  |  |  |  | $ | (8,120) |  |  | $ | 43,690 |  |  |
Derivatives in Fair Value Hedging Relationships |  |  |  |  |  |  |  |  |  |
Currency swaps |  |  |  |  |  | $ | 5,958 |  |  | $ | — |  |  |
Total derivatives in fair value hedging relationships |  |  |  |  |  | $ | 5,958 |  |  | $ | — |  |  |
Total unrealized (loss) gain on derivatives |  |  |  |  |  | $ | (2,162) |  |  | $ | 43,690 |  |  |
Summary of gain (loss) on derivatives reclassified from accumulated other comprehensive income (loss) | The following table summarizes the amount of gain (loss) on derivatives reclassified from AOCI (in thousands):
|  |  |  |  |  | Three months ended March 31,
Derivatives in Cash Flow Hedging Relationships |  | Location of Gain (Loss) Recognized in Income |  |  |  |  |  | 2023 |  | 2022 |  |
Currency swaps |  | Foreign currency and derivative gain (loss), net |  |  |  |  |  | $ | — |  |  | $ | 6,114 |  |  |
Interest rate swaps |  | Interest expense |  |  |  |  |  | 1,480 |  |  | (2,530) |  |  |
Foreign currency forwards |  | Foreign currency and derivative gain (loss), net |  |  |  |  |  | 1,431 |  |  | — |  |  |
Total derivatives in cash flow hedging relationships |  |  |  |  |  |  |  | $ | 2,911 |  |  | $ | 3,584 |  |  |
Derivatives in Fair Value Hedging Relationships |  |  |  |  |  |  |  |  |  |  |  |
Currency swaps |  | Foreign currency and derivative gain (loss), net |  |  |  |  |  | $ | 294 |  |  | $ | — |  |  |
Total derivatives in fair value hedging relationships |  |  |  |  |  |  |  | $ | 294 |  |  | $ | — |  |  |
Net increase to net income |  |  |  |  |  |  |  | $ | 3,205 |  |  | $ | 3,584 |  |  |
Schedule of foreign currency and derivative gains (losses) | The following table details our foreign currency and derivative gains (losses), net included in income (in thousands):
|  |  |  | Three months ended March 31,
|  |  |  |  |  | 2023 |  | 2022 |  |
Realized foreign currency and derivative gain (loss), net: |  |  |  |  |  |  |  |  |  |
Loss on the settlement of undesignated derivatives |  |  |  |  |  | $ | (345) |  |  | $ | (2,681) |  |  |
Gain on the settlement of designated derivatives reclassified from AOCI |  |  |  |  |  | 1,725 |  |  | 6,114 |  |  |
Gain (loss) on the settlement of transactions with third parties |  |  |  |  |  | 1,326 |  |  | (52) |  |  |
Total realized foreign currency and derivative gain, net |  |  |  |  |  | $ | 2,706 |  |  | $ | 3,381 |  |  |
Unrealized foreign currency and derivative gain (loss), net: |  |  |  |  |  |  |  |  |  |
(Loss) gain on the change in fair value of undesignated derivatives |  |  |  |  |  | $ | (782) |  |  | $ | 22,720 |  |  |
Gain (loss) on remeasurement of certain assets and liabilities |  |  |  |  |  | 8,398 |  |  | (26,691) |  |  |
Total unrealized foreign currency and derivative gain (loss), net |  |  |  |  |  | $ | 7,616 |  |  | $ | (3,971) |  |  |
Total foreign currency and derivative gains (losses), net |  |  |  |  |  | $ | 10,322 |  |  | $ | (590) |  |  |
Schedule of derivative financial instruments | The following table summarizes the terms and fair values of our derivative financial instruments at March 31, 2023 and December 31, 2022 (dollars in millions):
Derivative Type | Number of Instruments (1) | Accounting Classification | Notional Amount as of | Weighted Average Strike Rate (2) | Maturity Date (3) | Fair Value - asset (liability) as of
Derivatives Designated as Hedging Instruments | March 31, 2023 | December 31, 2022 |  |  | March 31, 2023 | December 31, 2022
Interest rate swaps | 9 | Derivative | $ | 1,630.0 |  | $ | 250.0 | 4.26% | Jan 2024 - Jan 2026 | $ | 5.3 |  | $ | 5.6 |
Interest rate swaptions | 6 | Derivative | 1,000.0 |  | — |  | (4) | Feb 2034 | 6.3 |  | — |
Cross-currency swaps | 3 | Derivative | 320.0 |  | 320.0 | (5) | Oct 2032 | (33.1) |  | (33.3) |
Foreign currency forwards | 24 | Derivative | 155.9 |  | 185.5 | (6) | Apr 2023 - Aug 2024 | 11.0 |  | 16.1 |
|  |  | $ | 3,105.9 |  | $ | 755.5 |  |  |  | $ | (10.5) |  | $ | (11.6) |
Derivatives not Designated as Hedging Instruments |  |  |  |  |  |
Currency exchange swaps (7) | 2 | Derivative | $ | 475.9 |  | $ | 2,427.7 | (8) | April 2023 | $ | (1.1) |  | $ | 58.8 |
Cross-currency swaps | 3 | Derivative | 280.0 |  | 280.0 | (5) | Oct 2032 | (29.3) |  | (29.5) |
|  |  | $ | 755.9 |  | $ | 2,707.7 |  |  |  | $ | (30.4) |  | $ | 29.3 |
Total of all Derivatives | $ | 3,861.8 |  | $ | 3,463.2 |  |  |  | $ | (40.9) |  | $ | 17.7 |
(1)This column represents the number of instruments outstanding as of March 31, 2023. (2)Weighted average strike rate is calculated using the notional value as of March 31, 2023. (3)This column represents maturity dates for instruments outstanding as of March 31, 2023. (4)Represent purchase swaptions with a strike rate of 3.75% and a sold swaption with a strike rate of 4.25%. (5)USD fixed rate of 5.625% and EUR weighted average fixed rate of 4.697%. (6)Weighted average forward GBP-USD exchange rate of 1.35. (7)Represent one GBP currency exchange swap with a notional amount of $61.6 million and one EUR currency exchange swap with an associated notional amount of $414.3 million as of March 31, 2023. (8)Weighted average EUR-USD exchange rate of 1.09 and GBP-USD exchange rate of 1.23.

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