Risk Management and Use of Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table sets forth certain information regarding our derivative instruments (in thousands):

		Asset Derivatives Fair Value at				Liability Derivatives Fair Value at
Derivatives Designated as Hedging Instruments	Balance Sheet Location	December 31, 2013		December 31, 2012		December 31, 2013			December 31, 2012
Interest rate cap	Other assets, net	$	2	$	25	$	—		$	—
Interest rate swaps	Other assets, net	1,618		—		—			—
Foreign currency forward contracts	Accounts payable, accrued expenses and other liabilities	—		—		(7,083		)	(2,067		)
Interest rate swaps	Accounts payable, accrued expenses and other liabilities	—		—		(2,734		)	(5,825		)
Derivatives Not Designated    as Hedging Instruments
Stock warrants (a)	Other assets, net	2,160		1,720		—			—
Interest rate swaps (b)	Accounts payable, accrued expenses and other liabilities	—		—		(11,995		)	(16,686		)
Total derivatives		$	3,780	$	1,745	$	(21,812	)	$	(24,578	)

__________

(a) In connection with the CPA^®:15 Merger, we acquired warrants from CPA^®:15, which were granted by Hellweg to CPA^®:15. These warrants give us participation rights to any distributions made by Hellweg 2 and we are entitled to a cash distribution that equals a certain percentage of the liquidity event price of Hellweg 2, should a liquidity event occur.

(b) These interest rate swaps were acquired from CPA^®:15 in the CPA^®:15 Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the CPA^®:15 Merger.

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The following tables present the impact of derivative instruments on the consolidated financial statements (in thousands):

	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)on Derivatives (Effective Portion) (a)
	Years Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2013			2012			2011
Interest rate swaps	$	4,720		$	(1,059	)	$	(3,564	)
Interest rate cap	(15		)	277			—
Foreign currency forward contracts	(5,211		)	(1,480		)	—
Total	$	(506	)	$	(2,262	)	$	(3,564	)

	Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss) into Income (Effective Portion) (b)
	Years Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2013		2012		2011
Interest rate swaps	$	1,745	$	1,539	$	344
Foreign currency forward contracts	537		239		—
Total	$	2,282	$	1,778	$	344

(a) Excludes net gains (losses) of $0.5 million, $0.3 million and less than $(0.1) million recognized on unconsolidated jointly-owned investments for the years ended December 31, 2013, 2012 and 2011, respectively.

(b) Excludes net gains of $0.5 million, $0.4 million and $0.2 million recognized on unconsolidated jointly-owned investments for the years ended December 31, 2013, 2012 and 2011 respectively.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

		Amount of Gain (Loss) Recognized in Income on Derivatives
	Location of Gain (Loss)	Years Ended December 31,
Derivatives Not in Cash Flow Hedging Relationships	Recognized in Income	2013		2012		2011
Interest rate swaps	Interest expense	$	5,249	$	429	$	—
Stock warrants	Other income and (expenses)	440		108		—
Total		$	5,689	$	537	$	—

Schedule of Derivative Instruments

The following table presents the foreign currency derivative contracts we had outstanding at December 31, 2013, which were designated as cash flow hedges (currency in thousands):

	Number of Instruments	Notional Amount		Fair Value at December 31, 2013 (a)
Foreign Currency Derivatives
Foreign currency forward contracts	58	€	100,737	$	(6,357	)
Foreign currency forward contracts	19	£	10,773	(726		)
				$	(7,083	)

 __________ 

(a) Amounts are based on the applicable exchange rate of the foreign currency at December 31, 2013.

The interest rate swaps and cap that we had outstanding on our consolidated subsidiaries at December 31, 2013 are summarized as follows (currency in thousands):

	Number of Instruments	Notional Amount		Fair Value at December 31, 2013 (a)
Interest Rate Derivatives
Designated as Cash Flow Hedging Instruments
Interest rate swaps	5	$	72,240	$	(24	)
Interest rate swaps	2	€	8,375	(1,092		)
Interest rate cap (b)	1	€	64,543	2
Not Designated as Cash Flow Hedging Instruments
Interest rate swaps (c) (d)	3	€	109,959	(11,995		)
				$	(13,109	)

__________

(a) Amounts are based on the exchange rate of the euro at December 31, 2013, as applicable.

(b) The applicable interest rate of the related debt was 1.3%, which was below the strike price of the cap of 2.0% at December 31, 2013.

(c) These interest rate swaps were acquired from CPA^®:15 in the CPA^®:15 Merger. They do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the variable-rate debt we acquired in the CPA^®:15 Merger.

(d) Notional and fair value amounts include, on a combined basis, portions attributable to noncontrolling interests totaling $27.5 million and $3.0 million, respectively.

Schedules of Concentration of Risk, by Risk Factor

The percentages in the table below represent our directly-owned real estate properties and do not include our share of equity investments.

	December 31, 2013
Region:
California	10	%
Other U.S.	60	%
Total U.S	70	%
Total Europe	30	%
Total	100	%
Asset Type:
Office	32	%
Industrial	18	%
Warehouse/Distribution	16	%
Retail	13	%
All others	21	%
Total	100	%
Tenant Industry:
Retail	19	%
All other	81	%
Total	100	%