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), the 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