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Derivative Instruments | 3 Months Ended
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Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments |
6. | Derivative Instruments
The Company may use derivative financial instruments, including interest swaps, caps, options, floors, and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The Company does not intend to utilize derivative instruments for speculative transactions or purposes other than mitigation of interest rate risk. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties that have high credit ratings. The Company does not anticipate that any of the counterparties will fail to meet their obligations. Detail on the Company's interest rate derivatives outstanding as of March 31, 2025 and December 31, 2024 is as follows:
(in thousands, except number of instruments data) |  |  |  |  |  |
Interest Rate Swaps |  | March 31, 2025 |  |  | December 31, 2024 |
Notional amount |  | $ | 303,116 |  |  |  | 301,444 |
Number of instruments |  |  | 15 |  |  |  | 14 |
Detail on the fair value of the Company's interest rate derivatives as of March 31, 2025 and December 31, 2024 is as follows:
(in thousands) |  |  |  |  |  |
Interest rate swaps classified as: |  | March 31, 2025 |  |  | December 31, 2024 |
Derivative assets |  | $ | 10,204 |  |  |  | 12,781 |
Derivative liabilities |  |  | (1,352 | ) |  |  | (423 | )
Derivatives in an asset position are included within Other assets in the accompanying Consolidated Balance Sheets, while those in a liability position are included within Accounts payable and other liabilities. These derivative financial instruments are all interest rate swaps, which are designated and qualify as cash flow hedges. The Company does not enter into derivative instruments for trading or speculative purposes. As of March 31, 2025, all of the Company's derivatives are designated as cash flow hedges. The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Accumulated other comprehensive income ("AOCI") and subsequently reclassified into earnings in the period that the hedged interest payments affects earnings. The following table represents the effect of the derivative financial instruments on the accompanying Consolidated Financial Statements:
Location and Amount of (Loss) Gain Recognized in OCI on Derivative |  |  | Location and Amount of Gain Reclassified from AOCI into Net Income |  |  | Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |
|  | Three months ended March 31, |  |  |  |  | Three months ended March 31, |  |  |  |  | Three months ended March 31, |
(in thousands) |  | 2025 |  |  | 2024 |  |  |  |  | 2025 |  |  | 2024 |  |  |  |  | 2025 |  |  | 2024 |
Interest rate swaps |  | $ | (2,648 | ) |  |  | 8,593 |  |  | I nterest expense, ne t |  | $ | (1,745 | ) |  |  | (2,367 | ) |  | Interest expense, net |  | $ | 48,013 |  |  |  | 42,868 |
As of March 31, 2025, the Company expects approximately $1.7 million of accumulated comprehensive income on derivative instruments, including the Company's share from its Investments in real estate partnerships, to be reclassified into earnings during the next 12 months.

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- 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
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