Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2019

The table below presents certain of our assets measured at fair value at September 30, 2019, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset:



			Fair Value at Reporting Date Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Non-Recurring Fair Value Measurements Assets:
Assets of properties held for sale ⁽¹⁾	$	89,050	$	—	$	89,050	$	—

(1)

During the three months ended September 30, 2019, we recorded impairment charges of $6,342 to reduce the carrying value of eight properties that are classified as held for sale in our condensed consolidated balance sheet to their estimated fair value less costs to sell based upon negotiated sales prices with third party buyers (Level 2 inputs as defined in the fair value hierarchy under GAAP). See Note 4 for further details.

In addition to the assets described in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, a mortgage note receivable, accounts payable, a revolving credit facility, senior unsecured notes, mortgage notes payable, amounts due to related persons, other accrued expenses and security deposits. At September 30, 2019 and December 31, 2018, the fair values of our financial instruments approximated their carrying values in our condensed consolidated financial statements, due to their short term nature or floating interest rates, except as follows:



	As of September 30, 2019				As of December 31, 2018
Financial Instrument	Carrying Amount ⁽¹⁾		Fair Value		Carrying Amount ⁽¹⁾		Fair Value
Senior unsecured notes, 3.75% interest rate, due in 2019	$	—	$	—	$	349,239	$	348,903
Senior unsecured notes, 3.60% interest rate, due in 2020	399,738		401,348		399,146		399,146
Senior unsecured notes, 4.00% interest rate, due in 2022	297,426		306,341		296,735		295,047
Senior unsecured notes, 4.15% interest rate, due in 2022	297,530		306,747		296,736		296,736
Senior unsecured notes, 4.25% interest rate, due in 2024	339,447		359,704		337,736		337,736
Senior unsecured notes, 4.50% interest rate, due in 2025	380,124		413,982		377,329		377,329
Senior unsecured notes, 5.875% interest rate, due in 2046	300,834		328,352		300,576		274,288
Mortgage notes payable ⁽²⁾	324,223		335,481		335,241		336,365
Total	$	2,339,322	$	2,451,955	$	2,692,738	$	2,665,550


(1)	Includes unamortized debt premiums, discounts and issuance costs totaling $47,940 and $55,524 as of September 30, 2019 and December 31, 2018, respectively.


(2)	Includes one mortgage note with a carrying value of $13,198 net of unamortized issuance costs totaling $38 and which is classified in liabilities of properties held for sale in our condensed consolidated balance sheet as of September 30, 2019.

We estimated the fair value of our senior unsecured notes (except for our senior unsecured notes due in 2046) using an average of the bid and ask price of the notes as of the measurement date (Level 2 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair value of our senior unsecured notes due 2046 based on the closing price on The Nasdaq Stock Market LLC, or Nasdaq, as of the measurement date (Level 1 inputs as defined in the fair value hierarchy under GAAP). We estimated the fair values of our mortgage notes payable by using discounted cash flow analyses and currently prevailing market rates as of the measurement date (Level 3 inputs as defined in the fair value hierarchy under GAAP). Because Level 3 inputs are unobservable, our estimated fair value may differ materially from the actual fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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