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Derivative Instruments | 12 Months Ended
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Dec. 31, 2023
Interest Rate Derivatives [Abstract] |
Derivative Instruments | 18. Derivative Instruments The Partnership’s derivative instruments are not designated as hedging instruments and are recorded at fair value. Changes in fair value are included in current period earnings as “Net result from derivative transactions” in the Partnership's consolidated statements of operations. The following tables are a summary of the unrealized and realized gains and losses of the Partnership's derivative instruments for the years ended December 31, 2023 and 2022:
|  | For the Year ended December 31, 2023 |
|  | Realized gains on derivatives, net |  |  | Unrealized losses on derivatives, net |  |  | Net result from derivative transactions |
Interest rate swaps |  | $ | (6,043,273 | ) |  | $ | 3,082,035 |  |  | $ | (2,961,238 | )
Interest rate cap |  |  | - |  |  |  | 91,363 |  |  |  | 91,363 |
Total return swaps |  |  | (4,501,709 | ) |  |  | - |  |  |  | (4,501,709 | )
Total |  | $ | (10,544,982 | ) |  | $ | 3,173,398 |  |  | $ | (7,371,584 | )
|  | For the Year ended December 31, 2022 |
|  | Realized gains on derivatives, net |  |  | Unrealized gains on derivatives, net |  |  | Net result from derivative transactions |
Interest rate swaps |  | $ | (140,171 | ) |  | $ | (7,199,197 | ) |  | $ | (7,339,368 | )
Interest rate cap |  |  | - |  |  |  | (40,539 | ) |  |  | (40,539 | )
Total return swaps |  |  | (5,715,515 | ) |  |  | - |  |  |  | (5,715,515 | )
Total |  | $ | (5,855,686 | ) |  | $ | (7,239,736 | ) |  | $ | (13,095,422 | )
The value of the Partnership’ interest rate swaps are subject to mark-to-market collateral posting provisions in conjunction with the Partnership’s respective ISDA master agreements (Note 16). See Note 24 for a description of the methodology and significant assumptions for determining the fair value of the derivatives. The derivative instruments are presented within “Other assets” and “Accounts payable, accrued expenses and other liabilities” in the Partnership's consolidated balance sheets. Interest Rate Swap Agreements The Partnership has entered into multiple interest rate swap agreements to mitigate interest rate risk associated with variable rate TOB trust financings (Note 16). No fees were paid to the counterparties upon closing of the interest rate swaps. The following table summarizes the Partnership’s interest rate swap agreements as of December 31, 2023 and December 31, 2022:
Trade Date |  | Notional Amount |  |  | Effective Date |  | Termination Date |  | Fixed Rate Paid |  |  | Period End Variable Rate Received |  |  | Variable Rate Index |  | Variable Debt Financing Hedged |  | Counterparty |  | Fair Value as of December 31, 2023 |
February 2022 |  |  | 55,990,000 |  |  | 2/9/2022 |  | 2/1/2024 |  |  | 1.40 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  | $ | 398,093 |
March 2022 |  |  | 47,850,000 |  |  | 3/3/2022 |  | 3/1/2027 |  |  | 1.65 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 3,062,500 |
October 2022 |  |  | 55,622,192 |  | (1) | 4/1/2023 |  | 4/1/2025 |  |  | 3.92 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 628,765 |
December 2022 |  |  | 23,380,234 |  | (2) | 1/1/2023 |  | 12/1/2029 |  |  | 3.27 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 418,477 |
December 2022 |  |  | 45,500,000 |  |  | 1/3/2023 |  | 1/1/2030 |  |  | 3.47 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 153,711 |
January 2023 |  |  | 12,065,200 |  |  | 1/19/2023 |  | 1/1/2030 |  |  | 3.35 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 115,960 |
January 2023 |  |  | 8,027,600 |  |  | 2/1/2023 |  | 2/1/2030 |  |  | 3.29 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 83,952 |
March 2023 |  |  | 12,017,000 |  | (3) | 4/1/2023 |  | 6/1/2029 |  |  | 3.37 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 115,187 |
April 2023 |  |  | 4,508,000 |  |  | 5/1/2023 |  | 5/1/2033 |  |  | 3.49 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 33,306 |
May 2023 |  |  | 9,170,000 |  |  | 6/1/2023 |  | 6/1/2030 |  |  | 3.15 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 194,988 |
June 2023 |  |  | 12,800,000 |  |  | 6/1/2023 |  | 6/1/2028 |  |  | 3.46 | % |  |  | 5.21 | % |  | SOFR |  | TOB Trusts |  | Barclays Bank PLC |  |  | 49,459 |
July 2023 |  |  | 6,240,000 |  |  | 8/1/2023 |  | 6/1/2030 |  |  | 3.65 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | (46,375 | )
August 2023 |  |  | 11,000,000 |  |  | 8/8/2023 |  | 2/1/2025 |  |  | 5.05 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | (49,464 | )
September 2023 |  |  | 25,000,000 |  |  | 9/19/2023 |  | 3/19/2024 |  |  | 5.54 | % |  |  | 5.35 | % |  | CME Term SOFR |  | TOB Trusts |  | Raymond James Bank |  |  | (14,438 | )
October 2023 |  |  | 4,080,000 |  | (4) | 10/10/2023 |  | 4/1/2027 |  |  | 4.72 | % |  |  | 5.35 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | (595,417 | )
|  |  | 333,250,226 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,548,704 |
(1) The notional amount increases according to a schedule up to a maximum notional amount of $99.6 million. (2) The notional amount increases according to a schedule up to a maximum notional amount of $47.8 million. (3) The notional amount increases according to a schedule up to a maximum notional amount of $21.6 million. (4) The notional amount increases according to a schedule up to a maximum notional amount of $24.1 million.
Trade Date |  | Notional Amount |  |  | Effective Date |  | Termination Date |  | Fixed Rate Paid |  |  | Period End Variable Rate Received |  |  | Variable Rate Index |  | Variable Debt Financing Hedged |  | Counterparty |  | Fair Value as of December 31, 2022 |
February 2022 |  |  | 55,990,000 |  |  | 2/9/2022 |  | 2/1/2024 |  |  | 1.40 | % |  |  | 4.09 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  | $ | 2,205,130 |
March 2022 |  |  | 47,850,000 |  |  | 3/3/2022 |  | 3/1/2027 |  |  | 1.65 | % |  |  | 4.09 | % |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 4,048,961 |
October 2022 |  |  | 34,436,088 |  | (1) | 4/1/2023 |  | 4/1/2025 |  |  | 3.92 | % |  | N/A |  |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 131,427 |
December 2022 |  |  | 10,880,000 |  | (2) | 1/1/2023 |  | 12/1/2029 |  |  | 3.27 | % |  | N/A |  |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 370,342 |
December 2022 |  |  | 45,500,000 |  |  | 1/3/2023 |  | 1/1/2030 |  |  | 3.47 | % |  | N/A |  |  | Compounded SOFR |  | TOB Trusts |  | Mizuho Capital Markets |  |  | 443,339 |
|  |  | 194,656,088 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 7,199,199 |
(1) The notional amount increases according to a schedule up to a maximum notional amount of $99.6 million. (2) The notional amount increases according to a schedule up to a maximum notional amount of $47.8 million. Total Return Swap Agreement The following table summarizes the terms of the Partnership’s total return swap as of December 31, 2022:
Trade Date |  | Notional Amount |  |  | Effective Date |  | Termination Date |  | Period End Variable Rate Paid |  |  | Period End Variable Rate Received |  |  | Variable Rate Index |  | Counterparty |  | Fair Value as of December 31, 2022 |
December 2022 |  |  | 102,690,670 |  |  | December 2022 |  | Sept 2025 |  |  | 7.80 | % | (1) |  | 13.05 | % | (2) | SOFR |  | Mizuho Capital Markets |  | $ | 239,612 |
(1) Variable rate equal to SOFR + 4.00%, subject to an all-in floor of 4.25%. (2) Variable rate equal to SOFR + 9.25%. The total return swap had the Partnership’s Secured Notes with Mizuho as the specified reference security (Note 16), with the total return swap notional amount equal to the outstanding principal on the Secured Notes. The total return swap was terminated in December 2023 upon redemption of Secured Notes. Interest Rate Cap Agreement The Partnership has entered into an interest rate cap agreement to mitigate exposure to interest rate risk associated with a variable-rate debt financing facility. The following tables summarize the Partnership’s interest rate cap agreement as of December 31, 2023 and 2022:
Purchase Date |  | Notional Amount |  |  | Maturity Date |  | Effective Capped Rate |  |  | Index |  | Variable Debt Financing Hedged |  | Counterparty |  | Fair Value as of December 31, 2023 |
August 2019 |  |  | 73,393,729 |  |  | Aug 2024 |  |  | 4.5 | % |  | SIFMA |  | M31 TEBS |  | Barclays Bank PLC |  | $ | 265 |
Purchase Date |  | Notional Amount |  |  | Maturity Date |  | Effective Capped Rate |  |  | Index |  | Variable Debt Financing Hedged |  | Counterparty |  | Fair Value as of December 31, 2022 |
August 2019 |  |  | 75,014,903 |  |  | Aug 2024 |  |  | 4.5 | % |  | SIFMA |  | M31 TEBS |  | Barclays Bank PLC |  | $ | 91,627 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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