Derivatives

6 Months Ended

Jun. 30, 2012

Derivatives [Abstract]

Derivatives

(9) Derivatives

As of June 30, 2012 in connection with certain mortgages payable that have variable interest rates, the Company has entered into interest rate swap agreements, with a notional value of $233,669. The Company’s interest rate swaps involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed rate payments over the life of the agreements without exchange of the underlying notional amount. The interest rate swaps were considered highly effective as of June 30, 2012 and December 31, 2011. The change in the fair value of the Company’s swaps as reflected in other comprehensive income was $401 and and $549 and $(1,022) and $(170) for the three and six months ended June 30, 2012 and 2011, respectively.

The following table summarizes interest rate swap contracts outstanding as of June 30, 2012 and December 31, 2011:

Date Entered	Effective Date	End Date	Pay Fixed Rate			Receive Floating Rate Index		Notional Amount			Fair Value as of December 31, 2011				Fair Value as of June 30, 2012
March 28, 2008	March 28, 2008	March 27, 2013		3.32	%		1 month LIBOR		33,062	$		(1,156	)	$		(742	)
January 16, 2009	January 13, 2009	January 13, 2012		1.62	%		1 month LIBOR		N/A			(10	)			0
August 19, 2010	August 31, 2010	March 27, 2012		0.63	%		1 month LIBOR		N/A			(22	)			0
October 15, 2010	November 1, 2010	April 23, 2013		0.94	%		1 month LIBOR		29,727			(181	)			(157	)
January 7, 2011	January 7, 2011	January 13, 2013		0.91	%		1 month LIBOR		26,221			(121	)			(86	)
January 7, 2011	January 7, 2011	January 13, 2013		0.91	%		1 month LIBOR		22,809			(105	)			(75	)
April 28, 2011	May 3, 2011	September 30, 2012		1.575	%		1 month LIBOR		56,702			(481	)			(181	)
September 1, 2011	September 29, 2012	September 29, 2014		0.79	%		1 month LIBOR		56,702			(130	)			(421	)
October 14, 2011	October 14, 2011	October 22, 2013		1.037	%		1 month LIBOR		8,446			(78	)			(73	)
									233,669	$		(2,284	)			(1,735	)

Risk Management Objective of Using Derivatives

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its debt funding and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to add stability to interest expense and to manage its exposure to interest rate movements.

Cash Flow Hedges of Interest Rate Risk

The Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company recorded $0 and $71 of ineffectiveness expense during the six months ended June 30, 2012 and 2011, which is included in interest expense on the consolidated statements of operations and other comprehensive income.

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations and other comprehensive income for the six months ended June 30, 2012 and 2011:

Derivatives in     ASC 815 Cash     Flow Hedging     Relationships		Amount of Gain or (Loss) Recognized in OCI on  Derivative (Effective Portion)					Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Location of Gain or (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)			Amount of Gain or (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
			Six Months Ended June 30,								Six Months Ended June 30,							Six Months Ended June 30,
			2012		2011						2012		2011					2012		2011
Interest Rate Products	$		549	$	(170	)		Interest expense	$		1,225	$	(2,129)		Interest expense	$		0	$	(71)