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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Summary of Derivative Liabilities Measured at Fair Value | The following table includes a summary of the compound embedded derivative liabilities measured at fair value using significant unobservable (Level 3) inputs (in thousands):
|  | Fair Value
Balance at December 31, 2022 |  | $ | 23,687 |
Re-measurement of fair value |  | 934 |
Balance at March 31, 2023 |  | 24,621 |
Re-measurement of fair value |  | (1,961) |
Balance at June 30, 2023 |  | 22,660 |
Re-measurement of fair value |  | 436 |
Balance at September 30, 2023 |  | 23,096 |
Re-measurement of fair value |  | 600 |
Balance at December 31, 2023 |  | 23,696 |
Re-measurement of fair value |  | (2,624) |
Balance at March 31, 2024 |  | 21,072 |
Re-measurement of fair value |  | 128 |
Balance at June 30, 2024 |  | 21,200 |
Re-measurement of fair value |  | 1,200 |
Balance at September 30, 2024 |  | $ | 22,400 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis aggregated by the level within which measurements fall in the fair value hierarchy (in thousands):
| Quoted Market Prices (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  |  |  | Total |
September 30, 2024: |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | — |  |  | $ | 4,074 |  |  | $ | — |  |  |  |  | $ | 4,074 |  | (1)
Total | $ | — |  |  | $ | 4,074 |  |  | $ | — |  |  |  |  | $ | 4,074 |  |
Liabilities |  |  |  |  |  |  |  |  |  |
Embedded debt derivative | $ | — |  |  | $ | — |  |  | $ | (22,400) |  |  |  |  | $ | (22,400) |  | (2)
Net | $ | — |  |  | $ | 4,074 |  |  | $ | (22,400) |  |  |  |  | $ | (18,326) |  |
December 31, 2023: |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | — |  |  | $ | 13,696 |  |  | $ | — |  |  |  |  | $ | 13,696 |  | (1)
Total | $ | — |  |  | $ | 13,696 |  |  | $ | — |  |  |  |  | $ | 13,696 |  |
Liabilities |  |  |  |  |  |  |  |  |  |
Embedded debt derivative | $ | — |  |  | $ | — |  |  | $ | (23,696) |  |  |  |  | $ | (23,696) |  | (2)
Net | $ | — |  |  | $ | 13,696 |  |  | $ | (23,696) |  |  |  |  | $ | (10,000) |  |
____________________________________ (1) Reported as “derivative assets” in our consolidated balance sheets. (2) Reported in “indebtedness, net” in our consolidated balance sheets.
Effect of Fair Value Measured Assets and Liabilities on Consolidated Statements of Operations | The following table summarizes the effect of fair value measured assets and liabilities on our consolidated statements of operations (in thousands):
| Gain (Loss) Recognized in Income |  |  |  |
| Three Months Ended September 30, |  |  |  |
| 2024 |  | 2023 |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | (5,002) |  |  | $ | (2,242) |  |  |  |  |  |  |  |  |
Total | $ | (5,002) |  |  | $ | (2,242) |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |
Embedded debt derivative | $ | (1,200) |  |  | $ | (436) |  |  |  |  |  |  |  |  |
Net | $ | (6,202) |  |  | $ | (2,678) |  |  |  |  |  |  |  |  |
Total combined |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | (12,259) |  |  | $ | (12,567) |  |  |  |  |  |  |  |  |
Embedded debt derivative | (1,200) |  |  | (436) |  |  |  |  |  |  |  |  |
Unrealized gain (loss) on derivatives | (13,459) |  | (1) | (13,003) |  | (1) |  |  |  |  |  |  |
Realized gain (loss) on interest rate caps | 7,257 |  | (1) (2) | 10,325 |  | (1) (2) |  |  |  |  |  |  |
Net | $ | (6,202) |  |  | $ | (2,678) |  |  |  |  |  |  |  |  |
____________________________________ (1) Reported as “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations. (2) Represents settled and unsettled payments from counterparties on interest rate caps.
| Gain (Loss) Recognized in Income |  |  |  |  |  |  |  |
| Nine Months Ended September 30, |  |  |  |  |  |  |  |
| 2024 |  | 2023 |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |
Derivative assets: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | (1,380) |  |  | $ | 3,899 |  |  |  |  |  |  |  |  |
Total | $ | (1,380) |  |  | $ | 3,899 |  |  |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |
Embedded debt derivative | $ | 1,296 |  |  | $ | 591 |  |  |  |  |  |  |  |  |
Net | $ | (84) |  |  | $ | 4,490 |  |  |  |  |  |  |  |  |
Total combined |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - caps | $ | (24,709) |  |  | $ | (26,891) |  |  |  |  |  |  |  |  |
Embedded debt derivative | 1,296 |  |  | 591 |  |  |  |  |  |  |  |  |
Unrealized gain (loss) on derivatives | (23,413) |  | (1) | (26,300) |  | (1) |  |  |  |  |  |  |
Realized gain (loss) on interest rate caps | 23,329 |  | (1) (2) | 30,790 |  | (1) (2) |  |  |  |  |  |  |
Net | $ | (84) |  |  | $ | 4,490 |  |  |  |  |  |  |  |  |
____________________________________ (1) Reported as “realized and unrealized gain (loss) on derivatives” in our consolidated statements of operations. (2) Represents settled and unsettled payments from counterparties on interest rate caps.

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- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 102 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-102 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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