Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Summary of Fair Value Estimates for Financial Instruments

prudent management decision. The following table summarizes fair value estimates for our financial instruments (in thousands):

	September 30, 2012						December 31, 2011
Asset (Liability)	Book Value			Fair Value			Book Value			Fair Value
Interest and rent receivables	$	42,094		$	34,166		$	29,862		$	22,866
Loans (1)		333,627			333,275			239,839			243,272
Debt, net		(1,025,183	)		(1,080,514	)		(689,849	)		(688,032	)

(1) Excludes loans related to the Ernest Transaction since they are recorded at fair value and discussed below.

Equity Interest in Ernest and Related Loans Measured at Fair Value on Recurring Basis

As discussed in Note 2, our equity interest in Ernest and related loans are being measured at fair value on a recurring basis. At September 30, 2012, these amounts were as follows (in thousands):

Asset Type	Fair Value		Cost		Asset Type Classification
Mortgage loans	$	100,000	$	100,000	Mortgage loans
Acquisition loan		93,200		93,200	Other loans
Equity investments		3,300		3,300	Other assets
	$	196,500	$	196,500