v3.26.3
Derivatives
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company primarily uses derivative financial instruments to minimize the risks and/or costs associated with the Company’s investments in real estate and investments in real estate debt and financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of Accounting Standards Codification Topic 815 - “Derivatives and Hedging”. Interest rate and foreign currency derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements, fluctuations in foreign exchange rates, and other identified risks. Subject to maintaining its qualifications as a REIT, the Company may enter into credit derivative instruments for investment purposes.
The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, the Company enters into derivative financial instruments with counterparties it believes to have appropriate credit ratings and that are major financial institutions with which the Company and its affiliates may also have other financial relationships.
Interest Rate Contracts
Certain of the Company’s transactions expose the Company to interest rate risks, which include exposure to variable interest rates on certain loans secured by the Company’s real estate in addition to its secured financings of investments in real estate debt. The Company uses derivative financial instruments, which includes interest rate swaps and caps, and may also include options, floors, and other interest rate derivative contracts, to limit the Company’s exposure to the future variability of interest rates. The Company has the right of offset for certain derivatives, and presents them net on its condensed consolidated financial statements.

The following tables detail the Company’s outstanding interest rate derivatives (notional amount in thousands):

September 30, 2026
Interest Rate Derivatives
Number of InstrumentsNotional AmountWeighted Average StrikeIndexWeighted Average Maturity (Years)
Derivatives designated as hedging instruments
Interest rate swaps – property debt
14$5,826,028 3.0%SOFR3.3
Derivatives not designated as hedging instruments
Interest rate caps – property debt(1)
14119,722,573 5.5%SOFR0.7
Interest rate swaps – property debt
4220,374,695 1.6%SOFR, EURIBOR1.7
Interest rate swaps – secured financings of investments in real estate debt77839,415 4.1%SOFR4.1
Total derivatives not designated as hedging instruments
$40,936,683 
December 31, 2025
Interest Rate Derivatives
Number of InstrumentsNotional AmountWeighted Average StrikeIndexWeighted Average Maturity (Years)
Derivatives designated as hedging instruments
Interest rate swaps – property debt
23$6,658,597 2.6%SOFR2.9
Derivatives not designated as hedging instruments
Interest rate caps – property debt(1)
13819,774,088 5.8%SOFR0.6
Interest rate swaps – property debt
5726,163,606 1.7%SOFR, EURIBOR2.2
Interest rate swaps – secured financings of investments in real estate debt8258,315 4.2%SOFR4.4
Total derivatives not designated as hedging instruments
$46,196,009 
(1)Includes interest rate caps presented on a net basis with an aggregate notional amount of $14.1 billion and $7.9 billion as of September 30, 2026 and December 31, 2025, respectively.
Foreign Currency Forward Contracts

Certain of the Company’s international investments expose it to fluctuations in foreign currency exchange rates and interest rates. These fluctuations may impact the value of the Company’s cash receipts and payments in terms of its functional currency, the U.S. dollar. The Company uses foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. 

The following table details the Company’s outstanding foreign currency forward contracts that were non-designated hedges of foreign currency risk (notional amount in thousands):
September 30, 2026December 31, 2025
Foreign Currency Forward ContractsNumber of InstrumentsNotional AmountNumber of InstrumentsNotional Amount
Buy USD / Sell EUR Forward3€26,582 6€47,163 
Buy USD / Sell GBP Forward1£134 1£1,180 
Buy EUR / Sell USD Forward—€— 1€66 
Credit Contracts
As of September 30, 2026, the Company has written credit protection to a third-party through one credit default swap under which it receives premiums in exchange for an obligation to make payments to the counterparty upon the occurrence of defined credit events of an underlying reference entity. The swap has a credit spread of 235 bps over SOFR with a notional amount of $100.0 million, a posted amount of $20.0 million, matures on March 13, 2030, and references an underlying debt obligation that is not externally rated. The underlying debt obligation was incurred by an entity in which the Company holds a minority equity interest, which such interest is included in Investments in Unconsolidated Entities on the Company's Condensed Consolidated Balance Sheets. The Company's credit default swap was included in Investments in Real Estate Debt on the Company’s Condensed Consolidated Balance Sheets.
Valuation and Financial Statement Impact
The following table details the fair value of the Company’s derivative financial instruments ($ in thousands):
Fair Value of Derivatives
in an Asset Position
Fair Value of Derivatives
in a Liability Position(1)
September 30, 2026December 31, 2025September 30, 2026December 31, 2025
Derivatives designated as hedging instruments
Interest rate swaps – property debt(2)
$236,523 $118,808 $— $748 
Total derivatives designated as hedging instruments(2)
236,523 118,808 — 748 
Derivatives not designated as hedging instruments(2)
Interest rate swaps – property debt(2)
851,885 827,557 — 3,728 
Interest rate caps – property debt(2)(3)
39,849 12,642 14,080 10,854 
Interest rate swaps – secured financings of investments in real estate debt(2)
19,284 201 2 7,764 
Foreign currency forward contracts(2)
219 1,120 — 1,180 
Total derivatives not designated as hedging instruments911,237 841,520 14,082 23,526 
Total interest rate and foreign currency derivatives$1,147,760 $960,328 $14,082 $24,274 
Credit contracts
Credit default swap(4)
20,000 — — — 
Total credit contracts
20,000 — — — 
Total derivatives$1,167,760 $960,328 $14,082 $24,274 
(1)Included in Other Liabilities in the Company’s Condensed Consolidated Balance Sheets.
(2)Included in Other Assets in the Company’s Condensed Consolidated Balance Sheets.
(3)Includes interest rate caps presented on a net basis with an aggregate fair value of $99.1 million and $25.3 million as of September 30, 2026 and December 31, 2025, respectively.
(4)Included in Investments in Real Estate Debt in the Company’s Condensed Consolidated Balance Sheets.
The following tables detail the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income (Loss) ($ in thousands):
Type of Derivative
Realized/Unrealized Gain (Loss)Location of Gain (Loss) Recognized Three Months Ended September 30,
20262025
Included in Net Income (Loss)
Interest rate swaps – property debt
Unrealized gain (loss)
(1)$89,580 $(156,246)
Interest rate caps – property debt
Unrealized gain (loss)
(1)7,819 (5,142)
Interest rate caps – property debt
Realized gain
(1)— 1,242 
Interest rate swaps – secured financings of investments in real estate debt
Unrealized gain
(1)
22,070 877 
Foreign currency forward contracts
Realized gain (loss)
(2)
123 (1,513)
Foreign currency forward contracts
Unrealized gain
(2)
165 2,637 
Credit default swaps
Unrealized gain (loss)(2)— — 
Total$119,757 $(158,145)
Included in Other Comprehensive Income
Interest rate swaps – property debt(3)
Unrealized gain (loss)
66,615 (21,378)
Total$186,372 $(179,523)
Type of Derivative
Realized/Unrealized Gain (Loss)Location of Gain (Loss) RecognizedNine Months Ended September 30,
20262025
Included in Net Income (Loss)
Interest rate swaps – property debt
Unrealized gain (loss)
(1)
$37,875 $(734,952)
Interest rate swaps – property debt
Realized loss(1)(1,618)— 
Interest rate caps – property debtUnrealized gain (loss)
(1)
8,966 (17,938)
Interest rate caps – property debt
Realized gain
(1)
— 1,224 
Interest rate swaps – secured financings of investments in real estate debtUnrealized gain (loss)
(1)
28,206 (6,362)
Foreign currency forward contracts
Realized gain (loss)
(2)
1,665 (6,293)
Foreign currency forward contracts
Unrealized gain (loss)
(2)
277 (3,865)
Credit default swaps
Unrealized gain (loss)(2)— — 
Total$75,371 $(768,186)
Included in Other Comprehensive Income
Interest rate swaps – property debt(3)
Unrealized gain (loss)117,086 (176,221)
Total$192,457 $(944,407)
(1)Included in Income (Loss) from Interest Rate Derivatives in the Company’s Condensed Consolidated Statements of Operations.
(2)Included in Income from Investments in Real Estate Debt in the Company’s Condensed Consolidated Statements of Operations.
(3)During the three and nine months ended September 30, 2026, net gain of $19.8 million and $57.7 million, respectively, was reclassified from accumulated other comprehensive income into net income.

Credit-Risk Related Contingent Features
The Company has entered into agreements with certain of its derivative counterparties that contain provisions whereby if the Company were to default on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company may also be declared in default under its derivative obligations. In addition, certain of the Company’s agreements with its derivative counterparties require the Company to post collateral based on a percentage of derivative notional amounts and/or to secure net liability positions.
As of September 30, 2026, the Company was in a net liability position and posted collateral of $2.7 million with one of its counterparties as required under the interest rate derivative contracts. As of December 31, 2025, the Company was in a net liability position and posted collateral of $14.9 million with one of its counterparties as required under the interest rate derivative contracts.
As of September 30, 2026, the Company posted collateral of $20.0 million to counterparties as required under the terms of the credit contract.