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Derivative Instruments

9 Months Ended

Sep. 30, 2024

Interest Rate Derivatives [Abstract]

Derivative Instruments

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 and nine months ended September 30, 2024 and 2023:

		For the Three Months ended September 30, 2024												For the Nine Months ended September 30, 2024
		Realized (gains) losses on derivatives, net				Unrealized (gains) losses on derivatives, net				Net result from derivative transactions				Realized (gains) losses on derivatives, net				Unrealized (gains) losses on derivatives, net				Net result from derivative transactions
Interest rate swaps		$	(1,812,945	)		$	9,695,459			$	7,882,514			$	(5,150,745	)		$	4,880,396			$	(270,349	)
Interest rate cap			14,502				-				14,502				14,502				265				14,767
Total		$	(1,798,443	)		$	9,695,459			$	7,897,016			$	(5,136,243	)		$	4,880,661			$	(255,582	)

		For the Three Months ended September 30, 2023												For the Nine Months ended September 30, 2023
		Realized (gains) losses on derivatives, net				Unrealized (gains) losses on derivatives, net				Net result from derivative transactions				Realized (gains) losses on derivatives, net				Unrealized (gains) losses on derivatives, net				Net result from derivative transactions
Interest rate swaps		$	(1,681,013	)		$	(4,312,984	)		$	(5,993,997	)		$	(3,783,987	)		$	(6,911,481	)		$	(10,695,468	)
Interest rate cap			-				76,387				76,387				-				90,587				90,587
Total return swaps			(1,291,775	)			-				(1,291,775	)			(3,935,115	)			-				(3,935,115	)
Total		$	(2,972,788	)		$	(4,236,597	)		$	(7,209,385	)		$	(7,719,102	)		$	(6,820,894	)		$	(14,539,996	)

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 September 30, 2024 and December 31, 2023:

						Fair Value as of September 30, 2024
Contract Type		Notional Amount				Asset				Liability				Weighted Average Remaining Maturity (Years)
Swaps
SOFR			392,782,208			$	2,704,180			$	(3,166,639	)			2.94
Cap
4.5% SIFMA Rate Cap			65,602,587				-				-				0.25
			458,384,795			$	2,704,180			$	(3,166,639	)

						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 September 30, 2024:

Year		Average Notional				Weighted Average Fixed Rate Paid
Remainder of 2024		$	406,596,769				3.54	%
2025			327,531,631				3.40	%
2026			277,393,799				3.37	%
2027			191,995,466				3.45	%
2028			155,697,132				3.55	%
2029			119,142,299				3.47	%
2030			19,392,800				3.77	%
2031			11,799,667				3.79	%
2032			9,583,000				3.71	%
2033			6,577,667				3.84	%
2034			2,537,500				3.91	%

X

- 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

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X

- References

No definition available.

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