3 unchanged sentences
The following is a summary of our annual exposure to a change in interest rates:
−Removed: September 30, 2021
+Added: March 31, 2022
December 31, 2021
11 unchanged sentences
Fixed rate (3)
+Added: (1) Excludes mortgages payable related to assets held for sale as of March 31, 2022, which were repaid in April 2022.
(2) Includes variable rate mortgages payable with interest rate cap agreements.
1 unchanged sentence
(4) The interest rate for our revolving credit facility excludes a 0.15% facility fee.
−Removed: (4) As of September 30, 2021 and December 31, 2020, the outstanding balance was fixed by interest rate swap agreements.
−Removed: The interest rate swaps mature concurrently with the term loan and provide a weighted average interest rate of 1.39% for the Tranche A-1 Term Loan and 1.34% for the Tranche A-2 Term Loan.
+Added: (5) As of March 31, 2022 and December 31, 2021, the outstanding balance was fixed by interest rate swap agreements.
+Added: As of March 31, 2022, the interest rate swaps mature in July 2024, and fix SOFR at a weighted average interest rate of 1.46% for the Tranche A-1 Term Loan and fix LIBOR at a weighted average rate of 1.34% for the Tranche A-2 Term Loan.
The fair value of our mortgages payable is estimated by discounting the future contractual cash flows of these instruments using current risk-adjusted rates available to borrowers with similar credit profiles based on market sources.
−Removed: The fair value of our unsecured term loans is calculated based on the net present value of payments over the term of the facilities using estimated market rates for similar notes and remaining terms.
−Removed: As of September 30, 2021 and December 31, 2020, the estimated fair value of our consolidated debt was $2.1 billion and $2.0 billion.
+Added: The fair value of our revolving credit facility and unsecured term loans is calculated based on the net present value of payments over the term of the facilities using estimated market rates for similar notes and remaining terms.
+Added: As of March 31, 2022 and December 31, 2021, the estimated fair value of our consolidated debt was $2.5 billion.
These estimates of fair value, which are made at the end of the reporting period, may be different from the amounts that may ultimately be realized upon the disposition of our financial instruments.
2 unchanged sentences
We do not enter into derivative financial instruments for speculative purposes.
−Removed: Derivative Financial Instruments Designated as Cash Flow Hedges
−Removed: Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are designated as cash flow hedges, and are carried at their estimated fair value on a recurring basis.
−Removed: We assess the effectiveness of our cash flow hedges
−Removed: both at inception and on an ongoing basis.
−Removed: If the hedges are deemed to be effective, the fair value is recorded in “Accumulated other comprehensive loss” in our balance sheets and is subsequently reclassified into "Interest expense"
+Added: Derivative Financial Instruments Designated as Effective Hedges
+Added: Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are cash flow hedges that are designated as effective hedges, and are carried at their estimated fair value on a recurring basis.
+Added: We assess the effectiveness of our hedges both at inception and on an ongoing basis.
+Added: If the hedges are deemed to be effective, the fair value is recorded in "Accumulated other comprehensive income (loss)"
+Added: in our balance sheets and is subsequently reclassified into "Interest expense"
in our statements of operations in the period that the hedged forecasted transactions affect earnings.
−Removed: Our cash flow hedges become less than perfectly effective if the critical terms of the hedging instrument and the forecasted transactions do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and interest rates.
+Added: Our hedges become less than perfectly effective if the critical terms of the hedging instrument and the forecasted transactions do not perfectly match such as notional amounts, settlement dates, reset dates, calculation period and interest rates.
In addition, we evaluate the default risk of the counterparty by monitoring the creditworthiness of the counterparty.
−Removed: While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income and equity.
−Removed: As of September 30, 2021 and December 31, 2020, we had interest rate swap agreements with an aggregate notional value of $862.7 million, which were designated as cash flow hedges.
−Removed: The fair value of our interest rate swaps designated as cash flow hedges consisted of liabilities totaling $28.4 million and $44.2 million as of September 30, 2021 and December 31, 2020, included in "Other liabilities, net"
+Added: While management believes its judgments are reasonable, a change in a derivative's effectiveness as a hedge could materially affect expenses, net income (loss) and equity.
+Added: As of March 31, 2022 and December 31, 2021, we had interest rate swap and cap agreements with an aggregate notional value of $1.0 billion and $862.7 million, which were designated as effective hedges.
+Added: The fair value of our interest rate swaps and caps designated as effective hedges consisted of assets totaling $11.6 million and $393,000 as of March 31, 2022 and December 31, 2021 included in "Other assets, net"
+Added: in our balance sheets, and liabilities totaling $658,000 and $18.4 million as of March 31, 2022 and December 31, 2021, included in "Other liabilities, net"
in our balance sheets.
−Removed: Derivative Financial Instruments Not Designated as Hedges
−Removed: Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are considered economic hedges, but not designated as accounting hedges, and are carried at their estimated fair value on a recurring basis.
−Removed: Realized and unrealized gains are recorded in "Interest expense"
−Removed: in our statements of operations in the period in which the change occurs.
−Removed: As of September 30, 2021 and December 31, 2020, we had various interest rate cap agreements with an aggregate notional value of $867.7 million, which were not designated as cash flow hedges.
−Removed: The fair value of our interest rate caps not designated as hedges consisted of assets totaling $266,000 and $35,000 as of September 30, 2021 and December 31, 2020, included in "Other assets, net"
+Added: Derivative Financial Instruments Designated as Ineffective Hedges
+Added: Certain derivative financial instruments, consisting of interest rate swap and cap agreements, are cash flow hedges that are designated as ineffective hedges, and are carried at their estimated fair value on a recurring basis.
+Added: Realized and unrealized gains or losses are recorded in "Interest expense"
+Added: in our statements of operations.
+Added: As of March 31, 2022 and December 31, 2021, we had various interest rate swap and cap agreements with an aggregate notional value of $692.7 million and $867.7 million, which were designated as ineffective hedges.
+Added: The fair value of our interest rate swaps and caps designated as ineffective hedges consisted of assets totaling $3.9 million and $558,000 as of March 31, 2022 and December 31, 2021, included in "Other assets, net"
in our balance sheets.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.