Derivative Instruments

3 Months Ended

Mar. 31, 2024

Interest Rate Derivatives [Abstract]

15. 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 condensed consolidated statements of operations, with gains reported as a reduction to expenses. The following tables are a summary of the unrealized and realized gains and losses of the Partnership's derivative instruments for the three months ended March 31, 2024 and 2023:


	For the Three Months ended March 31, 2024
	Realized (gains) losses on derivatives, net			Unrealized (gains) losses on derivatives, net			Net result from derivative transactions
Interest rate swaps	$	(1,663,449	)	$	(4,604,445	)	$	(6,267,894	)
Interest rate cap		-			230			230
Total	$	(1,663,449	)	$	(4,604,215	)	$	(6,267,664	)


	For the Three Months ended March 31, 2023
	Realized (gains) losses on derivatives, net			Unrealized (gains) losses on derivatives, net		Net result from derivative transactions
Interest rate swaps	$	(829,480	)	$	3,430,002	$	2,600,522
Interest rate cap					5,965		5,965
Total return swaps		(1,323,351	)		-		(1,323,351	)
Total	$	(2,152,831	)	$	3,435,967	$	1,283,136

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 13). See Note 20 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 condensed consolidated balance sheets.

The Partnership has entered into multiple interest rate swap agreements with large financial institutions to mitigate interest rate risk associated with variable rate TOB trust financings (Note 13). No fees were paid to the counterparties upon closing of the interest rate swaps. The Partnership has entered into an interest rate cap agreement to mitigate our exposure to interest rate risk associated with a variable-rate debt financing facility.

The following tables summarize the Partnership’s derivative instruments as of March 31, 2024 and December 31, 2023:


			Fair Value as of March 31, 2024
Contract Type	Notional Amount		Asset		Liability			Weighted Average Remaining Maturity (Years)
Swaps
SOFR		313,264,293	$	9,263,567	$	(224,845	)		3.04
Cap
4.5% SIFMA Rate Cap		72,988,749		35		-			0.42
		386,253,042	$	9,263,602	$	(224,845	)


			Fair Value as of December 31, 2023
Contract Type	Notional Amount		Asset		Liability			Weighted Average Remaining Maturity (Years)
Swaps
SOFR		333,250,226	$	5,254,398	$	(705,694	)		3.48
Cap
4.5% SIFMA Rate Cap		73,393,729		265		-			0.67
		406,643,955	$	5,254,663	$	(705,694	)

The following table summarizes the average notional amount and weighted average fixed rate by year for our interest rate swaps as of March 31, 2024:


Year	Average Notional		Weighted Average Fixed Rate Paid
Remainder of 2024	$	354,680,757		3.45	%
2025		297,636,631		3.31	%
2026		247,498,799		3.27	%
2027		162,100,466		3.31	%
2028		125,802,132		3.38	%
2029		103,872,299		3.38	%
2030		8,997,800		3.40	%