Interest rate swap agreements (Notes)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest rate swap agreements

Interest rate swap agreements

During the years ended December 31, 2013, 2012, and 2011, our interest rate swap agreements were used primarily to hedge the variable cash flows associated with certain of our existing LIBOR-based variable-rate debt, including our unsecured senior line of credit and unsecured senior bank term loans.  The ineffective portion of the change in fair value of our interest rate swap agreements is required to be recognized directly in earnings.  During the years ended December 31, 2013, 2012, and 2011, our interest rate swap agreements were 100% effective; because of this, no hedge ineffectiveness was recognized in earnings.  Changes in fair value, including accrued interest and adjustments for non-performance risk, on the effective portion of our interest rate swap agreements that are designated and that qualify as cash flow hedges are classified in accumulated other comprehensive loss. Amounts classified in accumulated other comprehensive loss are subsequently reclassified into earnings in the period during which the hedged transactions affect earnings.  During the next 12 months, we expect to reclassify approximately $6.2 million in accumulated other comprehensive loss to interest expense as an increase to interest expense. As of December 31, 2013 and 2012, the fair values of our interest rate swap agreements aggregating an asset balance were classified in other assets and those aggregating a liability balance were classified in accounts payable, accrued expenses, and tenant security deposits based upon their respective fair values. Under our interest rate swap agreements, we have no collateral posting requirements. We had the following outstanding interest rate swap agreements that were designated as cash flow hedges of interest rate risk as of December 31, 2013 (dollars in thousands):

Effective Date	Maturity Date	Number of Contracts	Weighted Average Interest Pay Rate (1)	Fair Value as of 12/31/13			Notional Amount in Effect as of
							12/31/13		12/31/14		12/31/15		12/31/16
December 29, 2006	March 31, 2014	1	4.99%	$	(596	)	$	50,000	$	—	$	—	$	—
November 30, 2009	March 31, 2014	2	5.02%	(1,800		)	150,000		—		—		—
December 31, 2013	December 31, 2014	2	0.98%	(3,795		)	500,000		—		—		—
December 31, 2013	March 31, 2015	2	0.23%	66			250,000		250,000		—		—
December 31, 2014	March 31, 2016	3	0.53%	658			—		500,000		500,000		—
March 31, 2016	March 31, 2017	3	1.40%	2,146			—		—		—		500,000
Total				$	(3,321	)	$	950,000	$	750,000	$	500,000	$	500,000

(1) In addition to the interest pay rate, borrowings outstanding as of December 31, 2013, under our unsecured senior bank term loans include an Applicable Margin of 1.20% and borrowings outstanding under our unsecured senior line of credit include an Applicable Margin of 1.10%.