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Financial Instruments and Fair Values (Tables) | 9 Months Ended
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Sep. 30, 2017
Fair Value Disclosures [Abstract] |
Summary of the Terms of Agreements and the Fair Value of Derivative Financial Instruments | The table below summarizes the terms of agreements and the fair values of our derivative financial instruments as of September 30, 2017 and December 31, 2016 (dollar amounts in thousands):
|  |  |  | September 30, 2017 |  | December 31, 2016
Derivative |  | Notional Amount | Receive Rate | Pay Rate | Effective Date | Expiration Date |  | Asset | Liability |  | Asset | Liability
Interest rate swap |  | $ | 265,000 |  | 1 Month LIBOR | 2.1485% | August 31, 2017 | August 24, 2022 |  | $ | — |  | $ | (3,436 | ) |  | $ | — |  | $ | (1,634 | )
Interest rate swap (1) |  | 100,000 |  | 3 Month LIBOR | 2.5050% | July 5, 2017 | July 5, 2027 |  | — |  | — |  |  | — |  | (684 | )
Interest rate swap (1) (2) |  | 80,000 |  | 3 Month LIBOR | 2.5050% | July 5, 2017 | July 5, 2027 |  | — |  | — |  |  | — |  | (685 | )
Interest rate swap |  | 100,000 |  | 3 Month LIBOR | 2.4860% | January 5, 2018 | January 5, 2028 |  | — |  | (1,448 | ) |  | 224 |  | — |
Interest rate swap |  | 100,000 |  | 3 Month LIBOR | 2.4860% | January 5, 2018 | January 5, 2028 |  | — |  | (1,448 | ) |  | 223 |  | — |
Interest rate swap |  | 75,000 |  | 3 Month LIBOR | 2.4860% | January 5, 2018 | January 5, 2028 |  | — |  | (1,086 | ) |  | 167 |  | — |
Interest rate swap |  | 75,000 |  | 3 Month LIBOR | 2.7620% | June 1, 2018 | June 1, 2028 |  | — |  | (2,592 | ) |  | — |  | (1,295 | )
Interest rate swap |  | 75,000 |  | 3 Month LIBOR | 2.7620% | June 1, 2018 | June 1, 2028 |  | — |  | (2,591 | ) |  | — |  | (1,293 | )
Interest rate swap |  | 100,000 |  | 3 Month LIBOR | 2.4625% | June 1, 2018 | June 1, 2028 |  | — |  | (777 | ) |  | — |  | — |
|  |  |  |  |  |  |  | $ | — |  | $ | (13,378 | ) |  | $ | 614 |  | $ | (5,591 | )
(1) | During June 2017, these swaps aggregating $180.0 million were terminated in connection with the refinancing of several of our mortgage debt (see Note 4 Debt). As of September 30, 2017, the deferred net losses from these terminated hedges amounted to $5.9 million which is included in accumulated other comprehensive loss relating to net unrealized loss from derivative financial instruments.
(2) | During March 2017, $20.0 million of an original notional amount of $100.0 million was terminated. In connection with the partial termination and re-designation of the related cash flow hedges, $0.3 million is recognized as a loss from derivative financial instruments and included in Other Expenses on the condensed consolidated statement of income for the nine months ended September 30, 2017. There was no loss from derivative financial instruments for the three months ended September 30, 2017 and for the three and nine months ended September 30, 2016.
Effect of Derivative Financial Instruments Designated as Cash Flow Hedges | The table below shows the effect of our derivative financial instruments designated as cash flow hedges on accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands):
|  | Three Months Ended |  | Nine Months Ended
Effects of Cash Flow Hedges |  | September 30, 2017 |  | September 30, 2016 |  | September 30, 2017 |  | September 30, 2016
Amount of gain (loss) recognized in other comprehensive income (loss) |  | $ | (1,638 | ) |  | $ | 930 |  |  | $ | (14,654 | ) |  | $ | (29,305 | )
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense |  | (359 | ) |  | — |  |  | (402 | ) |  | — |
The table below shows the effect of our derivative financial instruments designated as cash flow hedges on the condensed consolidated income statements for the three and nine months ended September 30, 2017 and 2016 (amounts in thousands):
|  | Three Months Ended |  | Nine Months Ended
Effects of Cash Flow Hedges |  | September 30, 2017 |  | September 30, 2016 |  | September 30, 2017 |  | September 30, 2016
Total interest (expense) presented in the condensed consolidated income statements in which the effects of cash flow hedges are recorded |  | $ | (16,890 | ) |  | $ | (17,939 | ) |  | $ | (52,109 | ) |  | $ | (52,758 | )
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into interest expense |  | (359 | ) |  | — |  |  | (402 | ) |  | — |
Summary of the Carrying and Estimated Fair Values of Financial Instruments | The following tables summarize the carrying and estimated fair values of our financial instruments as of September 30, 2017 and December 31, 2016 (amounts in thousands):
| September 30, 2017
|  |  | Estimated Fair Value
| Carrying Value |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Interest rate swaps included in prepaid expenses and other assets | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest rate swaps included in accounts payable and accrued expenses | 13,378 |  |  | 13,378 |  |  | — |  |  | 13,378 |  |  | — |
Mortgage notes payable | 720,830 |  |  | 712,365 |  |  | — |  |  | — |  |  | 712,365 |
Senior unsecured notes - Exchangeable | 243,923 |  |  | 281,068 |  |  | — |  |  | 281,068 |  |  | — |
Senior unsecured notes - Series A, B, and C | 348,991 |  |  | 344,267 |  |  | — |  |  | — |  |  | 344,267 |
Unsecured term loan facility | 263,546 |  |  | 265,000 |  |  | — |  |  | — |  |  | 265,000 |
| December 31, 2016
|  |  | Estimated Fair Value
| Carrying Value |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Interest rate swaps included in prepaid expenses and other assets | $ | 614 |  |  | $ | 614 |  |  | $ | — |  |  | $ | 614 |  |  | $ | — |
Interest rate swaps included in accounts payable and accrued expenses | 5,591 |  |  | 5,591 |  |  | — |  |  | 5,591 |  |  | — |
Mortgage notes payable | 759,016 |  |  | 755,640 |  |  | — |  |  | — |  |  | 755,640 |
Senior unsecured notes - Exchangeable | 241,474 |  |  | 282,435 |  |  | — |  |  | 282,435 |  |  | — |
Senior unsecured notes - Series A, B, and C | 348,914 |  |  | 339,274 |  |  | — |  |  | — |  |  | 339,274 |
Unsecured term loan facility | 262,927 |  |  | 265,000 |  |  | — |  |  | — |  |  | 265,000 |

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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=75026489&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=77997519&loc=d3e13433-108611 + Details
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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5618551-113959 + Details
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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624163-113959 + Details
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