Derivative Instruments

The Company uses forward currency contracts to economically hedge interest and principal payments due under its loans denominated in currencies other than U.S. dollars.

The Company has entered into a series of forward contracts to sell an amount of foreign currency (British pound ("GBP")) for an agreed upon amount of U.S. dollars at various dates through April 2018. These forward contracts were executed to economically fix the U.S. dollar amounts of foreign denominated cash flows expected to be received by the Company related to foreign denominated loan investments.

The following table summarizes the Company's non-designated foreign exchange (“Fx”) forwards as of September 30, 2017:



Type of Derivative	September 30, 2017
	Number of Contracts	Aggregate Notional Amount	Notional Currency	Maturity
Fx Contracts - GBP	13	197,401	GBP	October 2017- April 2018

The following table summarizes the Company's non-designated Fx forwards as of December 31, 2016:



Type of Derivative	December 31, 2016
	Number of Contracts	Aggregate Notional Amount	Notional Currency	Maturity
Fx Contracts - GBP	11	148,310	GBP	January 2017- December 2017

The Company has not designated any of its derivative instruments as hedges as defined in ASC 815, Derivatives and Hedging and, therefore, changes in the fair value of the Company's derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to the Company’s derivative instruments for the three and nine months ended September 30, 2017 and 2016.



		Three months ended September 30,						Nine months ended September 30,
	Location of Loss Recognized in Income	2017			2016			2017			2016
Forward currency contract	Gain (loss) on derivative instruments - unrealized	$	(7,308	)	$	(10,304	)	$	(17,629	)	$	1,812
Forward currency contract	Gain (loss) on derivative instruments - realized	(179		)	15,112			(290		)	21,100
Interest rate caps ⁽¹⁾	Gain (loss) on derivative instruments - unrealized	6			7			3			(81		)
Sub-total		$	(7,481	)	$	4,815		$	(17,916	)	$	22,831

Forward currency contract	Income (loss) from unconsolidated joint venture	—			—			(587		)	—
Total		$	(7,481	)	$	4,815		$	(18,503	)	$	22,831

———————

(1) With a notional amount of $41,507 and $46,798 at September 30, 2017 and 2016, respectively.

The following table summarizes the gross asset and liability amounts related to the Company's derivative instruments at September 30, 2017 and December 31, 2016.



	September 30, 2017								December 31, 2016
	Gross Amount of Recognized Liabilities			Gross Amounts Offset in the Condensed Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheet			Gross Amount of Recognized Assets		Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet
Interest rate caps	$	—		$	1	$	1		$	23	$	—	$	23
Forward currency contract	(11,747		)	—		(11,747		)	5,883		—		5,883
Total derivative instruments	$	(11,747	)	$	1	$	(11,746	)	$	5,906	$	—	$	5,906