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Derivative Instruments and Hedging
 6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Derivative Instruments and HedgingInterest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps. To mitigate the nonperformance risk, we routinely use a third-party’s analysis of the creditworthiness of the counterparties, which supports our belief that the counterparties’ nonperformance risk is limited. All derivatives are recorded at fair value.
The following table presents a summary of our interest rate derivatives entered into over each applicable period:
Six Months Ended June 30,
20222021
Interest rate caps:
Notional amount (in thousands)$2,873,651 
(1)
$3,206,301 
(1)
Strike rate low end of range3.00 %3.00 %
Strike rate high end of range4.00 %4.00 %
Effective date rangeJanuary 2022 - June 2022January 2021 - May 2021
Termination date rangeJanuary 2023 - July 2023November 2021 - December 2022
Total cost (in thousands)$5,255 $534 
_______________
(1)These instruments were not designated as cash flow hedges.
We held interest rate instruments as summarized in the table below:
June 30, 2022December 31, 2021
Interest rate caps:
Notional amount (in thousands)$3,525,751 
(1)
$3,597,301 
(1)
Strike rate low end of range2.00 %2.00 %
Strike rate high end of range4.00 %4.00 %
Termination date rangeNovember 2022 - November 2024February 2022 - November 2024
Aggregate principal balance on corresponding mortgage loans (in thousands)$3,504,500 $3,438,714 
_______________
(1)These instruments were not designated as cash flow hedges.
Compound Embedded Debt Derivative—Based on certain provisions in the Oaktree Credit Agreement, the Company is required to pay an exit fee. Under the applicable accounting guidance, the exit fee is considered an embedded derivative liability that meets the criteria for bifurcation from the debt host. There were other features that were bifurcated, but did not have a material value. The embedded debt derivative was initially measured at fair value and the fair value of the embedded debt derivative is estimated at each reporting period. See note 10.