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FAIR VALUE OF DERIVATIVES AND FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 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 September 30, 2022 and December 31, 2021, are summarized as follows (dollars in thousands):

Fair Value at September 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

September 30,

September 30,

Liabilities

Inputs

Inputs

2022 (a)

2022

(Level 1)

(Level 2)

(Level 3)

Description:

Notes receivable, net (b)

$

40,128

$

41,275

$

—

$

—

$

41,275

Equity securities (c)

7,664

7,664

7,664

—

—

Derivatives - Interest rate contracts (d)

16,117

16,117

—

16,117

—

Total assets

$

63,909

$

65,056

$

7,664

$

16,117

$

41,275

Secured debt instruments - fixed rate: (e)

Mortgage notes payable

$

1,029,572

$

898,145

$

—

$

—

$

898,145

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

41,181

41,181

—

—

41,181

Commercial paper program

425,000

425,000

—

—

425,000

Unsecured notes

4,131,556

3,366,736

—

—

3,366,736

Total liabilities

$

5,654,309

$

4,758,062

$

—

$

—

$

4,758,062

Redeemable noncontrolling interests in the Operating Partnership and DownREIT Partnership (f)

$

920,311

$

920,311

$

—

$

920,311

$

—


								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 September 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 nine months ended September 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.