XML 33 R15.htm IDEA: XBRL DOCUMENT
v3.24.3

Derivative Instruments and Hedging Activities | 9 Months Ended
--- | ---
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure | 7. Derivative Instruments and Hedging Activities BPLP’s agreements with derivative counterparties contain provisions whereby if BPLP defaults on the underlying indebtedness, including defaults where repayment of the indebtedness has not been accelerated by the lender, then BPLP could also be declared in default of the swap derivative obligation. As of September 30, 2024, the Company had not posted any collateral related to the agreements. Effective Hedge Instruments BPLP assesses the effectiveness of its derivatives both at inception and on an ongoing basis. If the hedges are deemed to be effective, the fair value is recorded in “Accumulated other comprehensive loss” in the Company’s Consolidated Balance Sheets and is subsequently reclassified into “Interest expense” in the Company’s Consolidated Statements of Operations in the period that the hedged forecasted transactions affect earnings. BPLP’s derivative financial instruments are cash flow hedges that are designated as effective hedges, and they are carried at their estimated fair value on a recurring basis (See Note 2). The Company did not incur ineffectiveness during the three and nine months ended September 30, 2024. BPLP’s and SMBP LLC’s derivative contracts consisted of the following at September 30, 2024 (dollars in thousands):
Derivative Instrument |  | Aggregate Notional Amount |  |  |  |  |  | Strike Rate Range |  | Balance Sheet Location |  |
|  | Effective Date |  | Maturity Date |  | Low |  | High |  |  | Fair Value
BPLP: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | $ | 600,000 |  |  | December 15, 2023 |  | October 26, 2028 |  | 3.790 | % | — | 3.798 | % |  | Other liabilities |  | $ | (12,600) |
Interest Rate Swaps |  | 100,000 |  |  | September 27, 2024 |  | April 1, 2025 |  | 2.688 | % | — | 2.688 | % |  | Prepaid expenses and other assets |  | 799 |
|  | 700,000 |  |  |  |  |  |  |  |  |  |  |  |  | (11,801) |
SMBP LLC (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swaps |  | 200,000 |  |  | December 14, 2023 |  | April 1, 2025 |  | 2.661 | % | — | 2.688 | % |  | Prepaid expenses and other assets |  | 1,610 |
|  | $ | 900,000 |  |  |  |  |  |  |  |  |  |  |  |  | $ | (10,191) |
_______________ (1)A consolidated subsidiary of the Company that is the borrower under the mortgage loan collateralized by its Santa Monica Business Park property. The following table presents the location in the financial statements of the gains or (losses) recognized as a result of the Company’s cash flow hedges for the three and nine months ended September 30, 2024 and 2023 (in thousands):
|  | Three months ended September 30, |  | Nine months ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023 |  |
Amount of gain (loss) related to the effective portion recognized in other comprehensive income (1) |  | $ | (32,263) |  |  | $ | 5,459 |  |  | $ | (14,976) |  |  | $ | 13,886 |  |  |
Amount of gain (loss) related to the effective portion subsequently reclassified to earnings (2) |  | $ | 3,077 |  |  | $ | 1,677 |  |  | $ | 9,518 |  |  | $ | 5,026 |  |  |
Amount of gain (loss) related do the ineffective portion and amount excluded from effectiveness testing |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
_______________ (1)Includes the Company’s share of gain (loss) related to the effective portion of derivatives outstanding at its unconsolidated joint venture properties. (2)Includes amounts from previous interest rate programs. BPLP has formally documented all of its relationships between hedge instruments and hedging items, as well as its risk-management objectives and strategy for undertaking various hedge transactions. While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income (loss) and equity. Ineffective Hedging Instruments During the year ended December 31, 2023, to satisfy a lender requirement, the Company entered into two agreements with the same third-party to purchase and sell a $600.0 million interest rate cap. The Company did not elect hedge accounting, and as such, any change in market value will be recognized in Gain (losses) from interest rate contracts in the Consolidated Statement of Operations. For the three and nine months ended September 30, 2024 and 2023, the Company recognized no impact to its Consolidated Statement of Operations from entering into these agreements.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration