10 unchanged sentences
Fixed rate (2)
−Removed: Credit facility:
+Added: Revolving credit facility and term loans:
Revolving credit facility (3)
1 unchanged sentence
Tranche A-2 Term Loan (4)
+Added: 2023 Term Loan (5)
Pro rata share of debt of unconsolidated real estate ventures (contractual balances):
2 unchanged sentences
(1) Includes variable rate mortgage loans with interest rate cap agreements.
−Removed: For mortgage loans with interest rate caps, the weighted average interest rate cap strike is 2.64%, and the weighted average maturity date of the interest rate caps is September 28, 2023.
+Added: For mortgage loans with interest rate caps, the weighted average interest rate cap strike was 3.33%, and the weighted average maturity date of the interest rate caps is March 2025.
The interest rate cap strike is exclusive of the credit spreads associated with the mortgage loans.
−Removed: As of December 31, 2022, one-month LIBOR was 4.39% and one-month term SOFR was 4.36%, as applicable.
+Added: As of December 31, 2023, one-month term SOFR was 5.35%.
The impact of these interest rate caps is reflected in our calculation of the annual effect of a 1% change in base rates.
(2) Includes variable rate mortgage loans with interest rates fixed by interest rate swap agreements.
−Removed: (3) As of December 31, 2022, one-month term SOFR was 4.36%.
+Added: (3) As of December 31, 2023, daily SOFR was 5.38%.
The interest rate for the revolving credit facility excludes a 0.15% facility fee.
+Added: In February 2024, we repaid all amounts outstanding under our revolving credit facility.
(4) As of December 31, 2023 and 2022, the outstanding balance was fixed by interest rate swap agreements.
As of December 31, 2023, the interest rate swaps fix SOFR at a weighted average interest rate of 1.46% for the Tranche A-1 Term Loan and 2.29% for the Tranche A-2 Term Loan.
+Added: See Note 10 to the consolidated financial statements for additional information.
+Added: (5) As of December 31, 2023, the outstanding balance was fixed by an interest rate swap agreement, which fixes SOFR at an interest rate of 4.01% through the maturity date.
The fair value of our mortgage loans 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 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: The fair value of our revolving credit facility and 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.
As of December 31, 2023 and 2022, the estimated fair value of our consolidated debt was $2.5 billion and $2.4 billion.
2 unchanged sentences
To manage, or hedge, our exposure to interest rate risk, we follow established risk management policies and procedures, including the use of a variety of derivative financial instruments.
−Removed: We do not enter into derivative financial instruments for speculative purposes.
Derivative Financial Instruments Designated as Effective Hedges
1 unchanged sentence
We assess the effectiveness of our hedges 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 income (loss)"
−Removed: in our consolidated balance sheets and is subsequently reclassified into "Interest expense"
−Removed: in our consolidated statements of operations in the period that the hedged forecasted transactions affect earnings.
+Added: If the hedges are deemed to be effective, the fair value is recorded in "Accumulated other comprehensive income" in our consolidated balance sheets and is subsequently reclassified into "Interest expense" in our consolidated statements of operations in the period that the hedged forecasted transactions affect earnings.
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.
1 unchanged sentence
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.
−Removed: As of December 31, 2022 and 2021, we had interest rate swap and cap agreements with an aggregate notional value of $1.4 billion and $862.7 million, which were designated as effective hedges.
−Removed: The fair value of our interest rate swaps and caps designated as effective hedges consisted of assets totaling $53.5 million and $393,000 as of December 31, 2022 and 2021 included in "Other assets, net"
−Removed: in our consolidated balance sheets, and liabilities totaling $18.4 million as of December 31, 2021, included in "Other liabilities, net"
−Removed: in our consolidated balance sheet.
−Removed: Derivative Financial Instruments Designated as Ineffective Hedges
−Removed: Certain derivative financial instruments, consisting of interest rate cap agreements, are cash flow hedges that are designated as ineffective 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 consolidated statements of operations.
−Removed: As of December 31, 2022 and 2021, we had various interest rate cap agreements with an aggregate notional value of $711.8 million and $867.7 million, which were designated as ineffective hedges.
−Removed: The fair value of our interest rate caps designated as ineffective hedges consisted of assets totaling $8.1 million and $558,000 as of December 31, 2022 and 2021, included in "Other assets, net"
−Removed: in our consolidated balance sheets.
+Added: As of December 31, 2023 and 2022, we had interest rate swap and cap agreements with an aggregate notional value of $2.2 billion and $1.4 billion, 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 $35.6 million and $53.5 million as of December 31, 2023 and 2022 included in "Other assets, net" in our consolidated balance sheets, and liabilities totaling $7.9 million as of December 31, 2023 included in "Other liabilities, net" in our consolidated balance sheet.
+Added: Non-Designated Derivatives
+Added: Certain derivative financial instruments, consisting of interest rate cap agreements, do not meet the accounting requirements to be classified as hedging instruments.
+Added: These derivatives are carried at their estimated fair value on a recurring basis with realized and unrealized gains recorded in "Interest expense" in our consolidated statements of operations.
+Added: As of December 31, 2023 and 2022, we had various interest rate cap agreements with an aggregate notional value of $642.7 million and $711.8 million, which were non-designated derivatives.
+Added: The fair value of our interest rate cap agreements which were non-designated derivatives consisted of assets totaling $6.7 million and $8.1 million as of December 31, 2023 and 2022, included in "Other assets, net" in our consolidated balance sheets, and liabilities totaling $6.5 million as of December 31, 2023, included in "Other liabilities, net" in our consolidated balance sheet.
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.