v3.25.1
Derivatives
 3 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company enters into derivatives in order to hedge interest rate risk. Derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets.

The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.

The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments.

The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of March 31, 2025 and December 31, 2024:
Fair Value Assets (Liabilities)
Underlying Debt InstrumentType of InstrumentAccounting PolicyNotional AmountEffective DateMaturity
Date		Interest RateMarch 31, 2025December 31, 2024
1918 EighthSwapCash flow hedge$172,865 February 2023October 20253.75%$338 $524 
1918 EighthCap
Partial cash flow hedge(1)
$314,300 June 2023December 20255.00%9 62 
1918 Eighth
Sold cap(2)
Mark-to-market$172,865 June 2023December 20255.00%(5)(34)
Hollywood Media Portfolio CMBSSwapCash flow hedge$351,186 August 2023June 20263.31%2,185 3,663 
Hollywood Media Portfolio CMBSSwapCash flow hedge$180,000 February 2024August 20264.13%(791)(267)
Hollywood Media Portfolio CMBSCap
Partial cash flow hedge(1)
$1,100,000 August 2024August 20256.01%— 4 
Hollywood Media Portfolio CMBS
Sold cap(2)
Mark-to-market$561,000 August 2024August 20256.01%— (2)
Sunset Glenoaks StudiosCapCash flow hedge$100,600 January 2025January 20264.50%19 72 
Office Portfolio CMBSCapMark-to-market$475,000 March 2025April 20274.96%542 — 
Office Portfolio CMBS
Sold cap(2)
Mark-to-market$475,000 March 2025April 20274.96%(541)— 
TOTAL$1,756 $4,022 
__________________ 
1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio CMBS caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting.
2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio CMBS caps that are not designated as cash flow hedges for accounting purposes, as well as the change in fair value of the full Office Portfolio CMBS cap, which is not designated as a cash flow hedge for accounting purposes.

The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2025, the Company expects $1.4 million of unrealized gain included in accumulated other comprehensive loss will be reclassified as a reduction to interest expense in the next 12 months.