Derivative Instruments

12 Months Ended

Dec. 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 consolidated statements of

operations, with gains reported as a reduction to expenses. The following tables are a summary of the realized and unrealized gains and losses of the Partnership's derivative instruments for the years ended December 31, 2024, 2023 and 2022:


	For the Year ended December 31, 2024
	Realized (gains) losses on derivatives, net			Unrealized (gains) losses on derivatives, net			Net result from derivative transactions
Interest rate swaps	$	(6,412,028	)	$	(2,098,165	)	$	(8,510,193	)
Interest rate cap		14,502			265			14,767
Total	$	(6,397,526	)	$	(2,097,900	)	$	(8,495,426	)


	For the Year ended December 31, 2023
	Realized (gains) losses on derivatives, net			Unrealized (gains) 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) losses on derivatives, net			Unrealized (gains) losses 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’s interest rate swaps are subject to mark-to-market collateral posting provisions in conjunction with the Partnership’s respective ISDA master agreements with Mizuho and Barclays (Note 13). See Note 21 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 13). No fees were paid to the counterparties upon closing of the interest rate swaps. The Partnership previously entered into an interest rate cap agreement to mitigate its exposure to interest rate risk associated with the M31 TEBS Financing.

The following table summarizes the Partnership’s interest rate derivative agreements as of December 31, 2024 and 2023


			Fair Value as of December 31, 2024
Contract Type	Notional Amount		Asset		Liability			Weighted Average Remaining Maturity (Years)
Swaps
SOFR		416,989,686	$	6,980,820	$	(609,766	)		2.68


			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 December 31, 2024:


Year	Average Notional		Weighted Average Fixed Rate Paid
2025	$	334,078,298		3.42	%
2026		300,528,466		3.42	%
2027		217,943,332		3.50	%
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	%