Non Recourse and Limited Recourse Debt

9 Months Ended

Sep. 30, 2011

Non Recourse And Limited Recourse Debt [Abstract]

Non Recourse and Limited Recourse Debt

Note 9.       Non-Recourse and Limited Recourse Debt

During the nine months ended September 30, 2011, we obtained non-recourse and limited-recourse mortgage financing totaling $213.9 million at a weighted-average annual interest rate and term of 5.6% and 10.0years, respectively. Of the total:

• $110.5 million of non-recourse financing was related to five domestic investments acquired during 2011;

• $32.6 million of non-recourse financing was related to three domestic investments acquired during 2010;

• $13.7 million of non-recourse financing was related to a United Kingdom investment acquired in 2009, based on the exchange rate of the British Pound Sterling on the date of financing;

• $48.1 million ofnon-recourse financing was related to theself-storage properties that we purchased during 2011; and

• $9.0 million incremental borrowing related to the March 2009 New York Times transaction, inclusive of amounts attributable to noncontrolling interests of $4.1 million. In March 2011, we refinanced the limited-recourse mortgage loan obtained in August 2009, which had an outstanding balance of $116.0 million at the date of refinancing, with new limited-recourse financing of $125.0 million that matures in April 2018 and has option to extend the maturity to April 2019. The new financing bears interest at an annual interest rate equal to the LIBOR plus 2.5% that has been capped at 6.25% through the use of an interest rate cap designated as a cash flow hedge, which matures in March 2014 (Note 8).

Additionally, in connection with the Metro investment, we assumed $222.7 million of indebtedness with an annual interest rate equal to Euribor plus 2.15%, that has been fixed at 4.18% through an interest rate swap, and a term of five years. Amounts are based on the exchange rate of the Euro on the date of acquisition. In connection with the self-storage investment, we also assumed a non-recourse mortgage totaling $14.8 million.

Non-recourse and limited-recourse debt consists of mortgage notes payable, which are collateralized by an assignment of real property and direct financing leases, with an aggregate carrying value of approximately $1.7 billion and $1.1 billion at September 30, 2011 and December 31, 2010, respectively. At September 30, 2011, our mortgage notes payable bore interest at fixed annual rates ranging from 3.6% to 6.6% and variable annual rates ranging from 2.8% to 6.6%, with maturity dates ranging from 2012 to2031.

Scheduled debt principal payments during each of the next five calendar years following September 30, 2011and thereafter are as follows (in thousands):

	Total
2011 (remainder)	$	3,654
2012		21,152
2013		18,543
2014		22,529
2015		64,421
Thereafter through 2031	984,423
		1,114,722
Fair market value adjustments(a)		(909)
Total	$	1,113,813

__________

• Represents the unamortized discount on two notes.

Certain amounts in the table above are based on the applicable foreign currency exchange rate at September 30, 2011.