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Derivative Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Floating to Fixed Interest Rate Swaps | As of September 30, 2024, the Company held the following floating-to-fixed interest rate swaps ($ in thousands):
Related Debt |  | Notional Amount |  | Index | Swap Fixed Rate |  | Debt Effective Rate |  | Effective Date |  | Expiration Date
Harbor Point Parcel 3 senior construction loan |  | $ | 90,000 |  | (a) | 1-month SOFR | 2.75 | % |  | 4.82 | % |  | 10/2/2023 |  | 10/1/2025
Floating rate pool of loans |  | 330,000 |  | (b) | 1-month SOFR | 2.75 | % |  | 4.33 | % |  | 10/1/2023 |  | 10/1/2025
Harbor Point Parcel 4 senior construction loan |  | 100,000 |  | (c) | 1-month SOFR | 2.75 | % |  | 5.12 | % |  | 11/1/2023 |  | 11/1/2025
Floating rate pool of loans |  | 300,000 |  | (d) | 1-month SOFR | 2.75 | % |  | 4.33 | % |  | 12/1/2023 |  | 12/1/2025
Revolving credit facility and TD unsecured term loan |  | 100,000 |  | (e) | Daily SOFR | 3.20 | % |  | 4.84 | % |  | 5/19/2023 |  | 5/19/2026
Thames Street Wharf loan |  | 66,819 |  | (f) | Daily SOFR | 0.93 | % |  | 2.33 | % |  | 9/30/2021 |  | 9/30/2026
M&T unsecured term loan |  | 100,000 |  | (f) | 1-month SOFR | 3.50 | % |  | 5.05 | % |  | 12/6/2022 |  | 12/6/2027
Liberty Retail & Apartments loan |  | 21,000 |  | (g) | 1-month SOFR | 3.43 | % |  | 4.93 | % |  | 12/13/2022 |  | 1/21/2028
Senior unsecured term loan |  | 79,000 |  | (g) | 1-month SOFR | 3.43 | % |  | 4.98 | % |  | 12/13/2022 |  | 1/21/2028
Total |  | $ | 1,186,819 |  |  |  |  |  |  |  |  |  |
________________________________________ (a) This interest rate swap agreement reduces the Company's interest rate exposure on the $180.4 million senior construction loan secured by the Company's Harbor Point Parcel 3 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.6 million to reduce the swap fixed rate in the period in which it was purchased. (b) The Company paid $13.3 million to reduce the swap fixed rate in the period in which it was purchased. (c) This interest rate swap agreement reduces the Company's interest rate exposure on the $109.7 million senior construction loan secured by the Company's Harbor Point Parcel 4 equity method investment as described in Note 6. As such, the loan is not reflected on the Company's consolidated balance sheets. The Company also paid $3.9 million to reduce the swap fixed rate in the period in which it was purchased. (d) The Company paid $10.5 million to reduce the swap fixed rate in the period in which it was purchased. (e) Subject to cancellation by the counterparty beginning on May 1, 2025 and the first day of each month thereafter. (f) Designated as a cash flow hedge. (g) The Company novated an existing 3.43% fixed rate swap with a $100.0 million notional and assigned (A) $11.1 million notional to the loan secured by Market at Mill Creek, effective April 17, 2024 and (B) $21.0 million to the loan secured by Liberty Retail & Apartments, effective February 1, 2024. Once the Market at Mill Creek loan was repaid, the $67.9 million swap on the senior unsecured loan increased to $79.0 million.
Schedule of Derivatives | The Company’s derivatives were comprised of the following as of September 30, 2024 and December 31, 2023 (in thousands):
|  | September 30, 2024 |  | December 31, 2023
|  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
|  |  |  | Asset |  | Liability |  |  |  | Asset |  | Liability
Derivatives not designated as accounting hedges |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 1,020,000 |  |  | $ | 9,157 |  |  | $ | (505) |  |  | $ | 1,020,000 |  |  | $ | 20,761 |  |  | $ | — |
Total derivatives not designated as accounting hedges |  | 1,020,000 |  |  | 9,157 |  |  | (505) |  |  | 1,020,000 |  |  | 20,761 |  |  | — |
Derivatives designated as accounting hedges |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | 166,819 |  |  | 3,091 |  |  | (621) |  |  | 667,894 |  |  | 7,141 |  |  | — |
Interest rate caps |  | — |  |  | — |  |  | — |  |  | 98,269 |  |  | 960 |  |  | — |
Total derivatives |  | $ | 1,186,819 |  |  | $ | 12,248 |  |  | $ | (1,126) |  |  | $ | 1,786,163 |  |  | $ | 28,862 |  |  | $ | — |
Schedule of Changes in Fair Value of Derivatives | The unrealized changes in the fair value of the Company’s derivatives during the three and nine months ended September 30, 2024 and 2023 were comprised of the following (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Interest rate swaps |  | $ | (20,018) |  |  | $ | 4,952 |  |  | $ | (10,943) |  |  | $ | 12,188 |
Interest rate caps |  | (1) |  |  | 20 |  |  | 22 |  |  | (346) |
Total unrealized change in fair value of interest rate derivatives |  | $ | (20,019) |  |  | $ | 4,972 |  |  | $ | (10,921) |  |  | $ | 11,842 |
Comprehensive income statement presentation: |  |  |  |  |  |  |  |
Change in fair value of derivatives and other |  | $ | (16,669) |  |  | $ | 1,484 |  |  | $ | (12,109) |  |  | $ | 1,974 |
Unrealized cash flow hedge gains |  | (3,350) |  |  | 3,488 |  |  | 1,188 |  |  | 9,868 |
Total unrealized change in fair value of interest rate derivatives |  | $ | (20,019) |  |  | $ | 4,972 |  |  | $ | (10,921) |  |  | $ | 11,842 |

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