Fair value measurements (Notes)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

We are required to disclose fair value information about all financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value.  We measure and disclose the estimated fair value of financial assets and liabilities utilizing a fair value hierarchy that distinguishes between data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions.  This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities, (ii) “significant other observable inputs,” and (iii) “significant unobservable inputs.”  “Significant other observable inputs” can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals.  “Significant unobservable inputs” are typically based on an entity’s own assumptions, since there is little, if any, related market activity.  In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety.  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.  There were no transfers between the levels in the fair value hierarchy during the years ended December 31, 2013 and 2012.

The following tables set forth the assets and liabilities that we measure at fair value on a recurring basis by level within the fair value hierarchy as of December 31, 2013 and 2012 (in thousands):

			December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Available-for-sale securities	$	4,469	$	4,469	$	—	$	—
Interest rate swap agreements	$	2,870	$	—	$	2,870	$	—
Liabilities:
Interest rate swap agreements	$	6,191	$	—	$	6,191	$	—

			December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Available-for-sale securities	$	2,709	$	2,709	$	—	$	—
Liabilities:
Interest rate swap agreements	$	20,661	$	—	$	20,661	$	—

Cash and cash equivalents, restricted cash, tenant receivables, other assets, accounts payable, accrued expenses, and tenant security deposits approximate fair value.  Our “available-for-sale” securities and our interest rate swap agreements, respectively, have been recognized at fair value.  The fair values of our secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loans were estimated using widely accepted valuation techniques, including discounted cash flow analyses of “significant other observable inputs” such as available market information on discount and borrowing rates with similar terms, maturities, and credit ratings.  Because the valuations of our financial instruments are based on these types of estimates, the actual fair value of our financial instruments may differ materially if our estimates do not prove to be accurate.  Additionally, the use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts.

As of December 31, 2013 and 2012, the book and fair values of our marketable equity securities, interest rate swap agreements, secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loans were as follows (in thousands):

	December 31, 2013				December 31, 2012
	Book Value		Fair Value		Book Value		Fair Value
Assets:
Marketable equity securities	$	4,469	$	4,469	$	2,709	$	2,709
Interest rate swap agreements	$	2,870	$	2,870	$	—	$	—
Liabilities:
Interest rate swap agreements	$	6,191	$	6,191	$	20,661	$	20,661
Secured notes payable	$	708,831	$	736,772	$	716,144	$	788,455
Unsecured senior notes payable	$	1,048,230	$	1,043,125	$	549,805	$	593,350
Unsecured senior line of credit	$	204,000	$	193,714	$	566,000	$	567,196
Unsecured senior bank term loans	$	1,100,000	$	1,099,897	$	1,350,000	$	1,405,124

Fair value measurements for other than on a recurring basis

See discussions at Note 3, “Investments in Real Estate, Net – Impairment of Real Estate Assets and Investments in Real Estate, Net – Sales of Land Parcels.”