v3.21.2

Interest Rate Swaps | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Interest Rate Swaps | 11. Interest Rate Swaps Interest rate swaps were entered into with certain financial institutions in order to mitigate the impact of interest rate variability over the term of the related debt agreements. The interest rate swaps are considered cash flow hedges. In order to reduce counterparty concentration risk, the Company has a diversification policy for institutions that serve as swap counterparties. Under these agreements, the Company receives monthly payments from the counterparties on these interest rate swaps equal to the related variable interest rates multiplied by the outstanding notional amounts. All of the Company's interest swaps at September 30, 2021 and December 31, 2020 are tied to the one-month LIBOR rate. Certain interest rate swaps amortize on a monthly basis. In turn, the Company pays the counterparties each month an amount equal to a fixed rate multiplied by the related outstanding notional amounts. The intended net impact of these transactions is that the Company pays a fixed interest rate on its variable-rate borrowings. In connection with the issuance of the 2031 Senior Unsecured Public Notes in September 2021 and repayment of outstanding borrowings of variable rate debt indexed to the one-month LIBOR rate (see Note 9), t he Company terminated interest rate swap agreements with an aggregate termination value of $5,580. The Company determined that it is not probable the hedge forecasted transactions will not occur during the original periods, and therefore, the $5,580 of accumulated losses held in Other comprehensive income (loss) will be reclassified to interest expense on a straight-line basis over the original lives of the terminated swaps. For the three and nine months ended September 30, 2021, amounts reclassified out of Other comprehensive income (loss) to Interest expense were $126. The following is a summary of the Company’s outstanding interest rate swap agreements:
(in thousands, except interest rates) |  |  |  |  | September 30, 2021 |  |  | December 31, 2020 |  |
Counterparty |  | Maturity Date |  | Fixed Rate |  |  | Notional Amount |  |  | Fair Value |  |  | Notional Amount |  |  | Fair Value |  |
Wells Fargo Bank, N.A. |  | February 2021 |  |  | 2.39 | % |  | $ | — |  |  | $ | — |  |  | $ | 35,000 |  |  | $ | (70 | ) |
M&T Bank |  | August 2021 |  |  | 1.02 | % |  |  | — |  |  |  | — |  |  |  | 4,768 |  |  |  | (25 | ) | (a)
Capital One, National Association |  | December 2021 |  |  | 1.05 | % |  |  | — |  |  |  | — |  | (b) |  | 15,000 |  |  |  | (141 | ) |
M&T Bank |  | September 2022 |  |  | 2.83 | % |  |  | — |  |  |  | — |  | (b) |  | 25,000 |  |  |  | (1,139 | ) |
Bank of America, N.A. |  | November 2023 |  |  | 2.80 | % |  |  | — |  |  |  | — |  | (b) |  | 25,000 |  |  |  | (1,848 | ) |
M&T Bank |  | November 2023 |  |  | 2.65 | % |  |  | — |  |  |  | — |  | (b) |  | 25,000 |  |  |  | (1,785 | ) |
Regions Bank |  | December 2023 |  |  | 1.18 | % |  |  | — |  |  |  | — |  | (b) |  | 25,000 |  |  |  | (763 | ) |
Truist Financial Corporation |  | April 2024 |  |  | 1.99 | % |  |  | — |  |  |  | — |  | (b) |  | 25,000 |  |  |  | (1,487 | ) |
Bank of Montreal |  | July 2024 |  |  | 1.16 | % |  |  | — |  |  |  | — |  | (b) |  | 40,000 |  |  |  | (1,380 | ) |
Wells Fargo Bank, N.A. |  | October 2024 |  |  | 2.72 | % |  |  | 15,000 |  |  |  | (964 | ) |  |  | 15,000 |  |  |  | (1,422 | ) |
Capital One, National Association |  | December 2024 |  |  | 1.58 | % |  |  | 15,000 |  |  |  | (463 | ) |  |  | 15,000 |  |  |  | (799 | ) |
Bank of Montreal |  | January 2025 |  |  | 1.91 | % |  |  | 25,000 |  |  |  | (1,044 | ) |  |  | 25,000 |  |  |  | (1,725 | ) |
Truist Financial Corporation |  | April 2025 |  |  | 2.20 | % |  |  | 25,000 |  |  |  | (1,324 | ) |  |  | 25,000 |  |  |  | (2,084 | ) |
Bank of Montreal |  | July 2025 |  |  | 2.32 | % |  |  | 25,000 |  |  |  | (1,478 | ) |  |  | 25,000 |  |  |  | (2,351 | ) |
Truist Financial Corporation |  | July 2025 |  |  | 1.99 | % |  |  | 25,000 |  |  |  | (1,174 | ) |  |  | 25,000 |  |  |  | (1,941 | ) |
Truist Financial Corporation |  | December 2025 |  |  | 2.30 | % |  |  | 25,000 |  |  |  | (1,546 | ) |  |  | 25,000 |  |  |  | (2,481 | ) |
Bank of Montreal |  | January 2026 |  |  | 1.92 | % |  |  | 25,000 |  |  |  | (1,156 | ) |  |  | 25,000 |  |  |  | (2,039 | ) |
Bank of Montreal |  | January 2026 |  |  | 2.05 | % |  |  | 40,000 |  |  |  | (2,062 | ) |  |  | 40,000 |  |  |  | (3,523 | ) |
Capital One, National Association |  | January 2026 |  |  | 2.08 | % |  |  | 35,000 |  |  |  | (1,842 | ) |  |  | 35,000 |  |  |  | (3,078 | ) |
Truist Financial Corporation |  | January 2026 |  |  | 1.93 | % |  |  | 25,000 |  |  |  | (1,164 | ) |  |  | 25,000 |  |  |  | (2,019 | ) |
Capital One, National Association |  | April 2026 |  |  | 2.68 | % |  |  | 15,000 |  |  |  | (1,204 | ) |  |  | 15,000 |  |  |  | (1,843 | ) |
Capital One, National Association |  | July 2026 |  |  | 1.32 | % |  |  | 35,000 |  |  |  | (682 | ) |  |  | 35,000 |  |  |  | (1,806 | ) |
Bank of Montreal |  | December 2026 |  |  | 2.33 | % |  |  | 10,000 |  |  |  | (692 | ) |  |  | 10,000 |  |  |  | (1,156 | ) |
Bank of Montreal |  | December 2026 |  |  | 1.99 | % |  |  | 25,000 |  |  |  | (1,300 | ) |  |  | 25,000 |  |  |  | (2,372 | ) |
Wells Fargo Bank, N.A. |  | April 2027 |  |  | 2.72 | % |  |  | 25,000 |  |  |  | (2,287 | ) |  |  | 25,000 |  |  |  | (3,555 | ) |
Bank of Montreal |  | December 2027 |  |  | 2.37 | % |  |  | 25,000 |  |  |  | (1,904 | ) |  |  | 25,000 |  |  |  | (3,234 | ) |
Capital One, National Association |  | December 2027 |  |  | 2.37 | % |  |  | 25,000 |  |  |  | (1,909 | ) |  |  | 25,000 |  |  |  | (3,199 | ) |
Wells Fargo Bank, N.A. |  | January 2028 |  |  | 2.37 | % |  |  | 75,000 |  |  |  | (5,743 | ) |  |  | 75,000 |  |  |  | (9,650 | ) |
Bank of Montreal |  | May 2029 |  |  | 2.09 | % |  |  | 25,000 |  |  |  | (1,557 | ) |  |  | 25,000 |  |  |  | (2,994 | ) |
Regions Bank |  | May 2029 |  |  | 2.11 | % |  |  | 25,000 |  |  |  | (1,599 | ) |  |  | 25,000 |  |  |  | (3,004 | ) |
Regions Bank |  | June 2029 |  |  | 2.03 | % |  |  | 25,000 |  |  |  | (1,459 | ) |  |  | 25,000 |  |  |  | (2,843 | ) |
U.S. Bank National Association |  | June 2029 |  |  | 2.03 | % |  |  | 25,000 |  |  |  | (1,456 | ) |  |  | 25,000 |  |  |  | (2,902 | ) |
U.S. Bank National Association |  | August 2029 |  |  | 1.35 | % |  |  | 25,000 |  |  |  | (187 | ) |  |  | 25,000 |  |  |  | (1,445 | ) |
|  |  |  |  |  |  | $ | 640,000 |  |  | $ | (36,196 | ) |  | $ | 859,768 |  |  | $ | (72,103 | ) |
(a) Interest rate swap was assumed in October 2017 as part of an UPREIT transaction. (b) Interest rate swap was terminated in September 2021. At September 30, 2021, the weighted average fixed rate on all outstanding interest rate swaps was 2.11%. The total amounts recognized, and the location in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income (Loss), from converting from variable rates to fixed rates under these agreements were as follows:
|  |  |  |  | Reclassification from |  |  | Total Interest Expense |
|  | Amount of Gain |  |  | Accumulated Other |  |  | Presented in the Condensed |
|  | Recognized in |  |  | Comprehensive Loss |  |  | Consolidated Statements of |
(in thousands) |  | Accumulated Other |  |  |  |  | Amount of |  |  | Income and Comprehensive |
For the Three Months Ended September 30, |  | Comprehensive Loss |  |  | Location |  | Loss |  |  | Income (Loss) |
2021 |  | $ | 4,559 |  |  | Interest expense |  | $ | 4,085 |  |  | $ | 15,611 |
2020 |  |  | 4,352 |  |  | Interest expense |  |  | 4,166 |  |  |  | 18,511 |
|  | Amount of Gain |  |  | Reclassification from |  |  | Total Interest Expense |
|  | (Loss) |  |  | Accumulated Other |  |  | Presented in the Condensed |
|  | Recognized in |  |  | Comprehensive Loss |  |  | Consolidated Statements of |
(in thousands) |  | Accumulated Other |  |  |  |  | Amount of |  |  | Income and Comprehensive |
For the Nine Months Ended September 30, |  | Comprehensive Loss |  |  | Location |  | Loss |  |  | Income (Loss) |
2021 |  | $ | 30,328 |  |  | Interest expense |  | $ | 12,140 |  |  | $ | 47,149 |
2020 |  |  | (59,766 | ) |  | Interest expense |  |  | 8,467 |  |  |  | 59,015 |
Amounts related to the interest rate swaps expected to be reclassified out of Accumulated other comprehensive loss to Interest expense during the next twelve months are estimated to be a loss of $15,477. The Company is exposed to credit risk in the event of non-performance by the counterparties of the swaps. The Company minimizes the risk exposure by limiting counterparties to major banks who meet established credit and capital guidelines.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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