Derivatives (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Outstanding Derivatives |
The following tables detail the Company’s outstanding interest rate derivatives (notional amount in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | Interest Rate Derivatives | | Number of Instruments | | Notional Amount | | Weighted Average Strike | | Index | | Weighted Average Maturity (Years) | Derivatives designated as hedging instruments | | | | | | | | | | | Interest rate swaps – property debt | | 14 | | $ | 5,826,028 | | | 3.0% | | SOFR | | 3.3 | Derivatives not designated as hedging instruments | | | | | | | | | | | Interest rate caps – property debt(1) | | 141 | | 19,722,573 | | | 5.5% | | SOFR | | 0.7 | Interest rate swaps – property debt | | 42 | | 20,374,695 | | | 1.6% | | SOFR, EURIBOR | | 1.7 | | Interest rate swaps – secured financings of investments in real estate debt | | 77 | | 839,415 | | | 4.1% | | SOFR | | 4.1 | Total derivatives not designated as hedging instruments | | | | $ | 40,936,683 | | | | | | | | | | December 31, 2025 | Interest Rate Derivatives | | Number of Instruments | | Notional Amount | | Weighted Average Strike | | Index | | Weighted Average Maturity (Years) | Derivatives designated as hedging instruments | | | | | | | | | | | Interest rate swaps – property debt | | 23 | | $ | 6,658,597 | | | 2.6% | | SOFR | | 2.9 | Derivatives not designated as hedging instruments | | | | | | | | | | | Interest rate caps – property debt(1) | | 138 | | 19,774,088 | | | 5.8% | | SOFR | | 0.6 | Interest rate swaps – property debt | | 57 | | 26,163,606 | | | 1.7% | | SOFR, EURIBOR | | 2.2 | | Interest rate swaps – secured financings of investments in real estate debt | | 8 | | 258,315 | | | 4.2% | | SOFR | | 4.4 | 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 $7.9 billion as of September 30, 2026 and December 31, 2025, respectively. The following table details the Company’s outstanding foreign currency forward contracts that were non-designated hedges of foreign currency risk (notional amount in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | Foreign Currency Forward Contracts | | Number of Instruments | | Notional Amount | | Number of Instruments | | Notional Amount | | Buy USD / Sell EUR Forward | | 3 | | € | 26,582 | | | 6 | | € | 47,163 | | | Buy USD / Sell GBP Forward | | 1 | | £ | 134 | | | 1 | | £ | 1,180 | | | Buy EUR / Sell USD Forward | | — | | € | — | | | 1 | | € | 66 | | | | | | | | | | | | | | | | | | | |
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| Schedule of Fair Value of Derivative Financial Instruments |
The following table details the fair value of the Company’s derivative financial instruments ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value of Derivatives in an Asset Position | | Fair Value of Derivatives in a Liability Position(1) | | September 30, 2026 | | December 31, 2025 | | September 30, 2026 | | December 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 instruments | 911,237 | | | 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 $25.3 million as of September 30, 2026 and December 31, 2025, respectively. (4)Included in Investments in Real Estate Debt in the Company’s Condensed Consolidated Balance Sheets.
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| Schedule of Effect of Derivative Financial Instruments on Condensed Consolidated Statements of Operations |
The following tables detail the effect of the Company’s derivative financial instruments on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income (Loss) ($ in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Type of Derivative | | Realized/Unrealized Gain (Loss) | | Location of Gain (Loss) Recognized | | Three Months Ended September 30, | | | | 2026 | | 2025 | | | | 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) Recognized | | Nine Months Ended September 30, | | | | 2026 | | 2025 | | | 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 debt | | Unrealized 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 debt | | Unrealized 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.
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