Mortgages, Notes and Margins Payable

6 Months Ended

Jun. 30, 2012

Mortgages, Notes and Margins Payable [Abstract]

Mortgages, Notes and Margins Payable

(8) Mortgages, Notes and Margins Payable

Mortgage loans outstanding as of June 30, 2012 and December 31, 2011 were $6,078,271 and $5,812,595 and had a weighted average interest rate of 5.2% and 5.2% per annum, respectively. Mortgage premium and discount, net was a discount of $33,219 and $30,741 as of June 30, 2012 and December 31, 2011, respectively. As of June 30, 2012, scheduled maturities for the Company’s outstanding mortgage indebtedness had various due dates through December 2047, as follows:

Maturity Date		As of June 30, 2012		Weighted average annual interest rate
2012	$		271,482		3.88%
2013			1,029,364		4.62%
2014			630,018		4.27%
2015			590,080		4.97%
2016			786,988		5.49%
Thereafter			2,770,339		5.72%

The Company is negotiating refinancing debt maturing in 2012 and 2013 with various lenders at terms that will allow us to pay comparable interest rates. It is anticipated that the Company will be able to repay, refinance or extend the debt maturing in 2012 and 2013, and the Company believes it has adequate sources of funds to meet short term cash needs related to these refinancings. Of the total outstanding debt, approximately $583,260 is recourse to the Company.

Some of the mortgage loans require compliance with certain covenants, such as debt coverage service ratios, investment restrictions and distribution limitations. As of June 30, 2012, the Company was in compliance with all mortgage loan requirements except eight loans with a carrying value of $122,513. The loans are collateralized by the underlying properties with a carrying value of $96,762. None of the loans are cross collateralized with any other mortgage loans or recourse to the Company. The stated maturities of the mortgage loans in default are reflected as follows: $12,100 in 2011, $24,970 in 2012, $9,757 in 2016 and $75,686 in 2017.

The Company has purchased a portion of its securities through margin accounts. As of June 30, 2012 and December 31, 2011, the Company has recorded a payable of $149,979 and $120,858, respectively, for securities purchased on margin. At June 30, 2012 and December 31, 2011, this average interest rate was 0.590% and 0.621%. Interest expense in the amount of $228 and $84 and $427 and $169 was recognized in interest expense on the consolidated statements of operations and other comprehensive income for the three and six months ended June 30, 2012 and 2011, respectively.