Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value, Liabilities Measured on Recurring Basis

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, aggregated by the level in the fair value hierarchy within which those instruments fall.



(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total
September 30, 2016
Cross currency swaps, net (GBP & EUR)	$	—	$	1,606		$	—		$	1,606
Foreign currency forwards, net (GBP & EUR)	$	—	$	3,390		$	—		$	3,390
Interest rate swaps, net (GBP & EUR)	$	—	$	(16,093	)	$	—		$	(16,093	)
OPP (see Note 12)	$	—	$	—		$	(12,400	)	$	(12,400	)
December 31, 2015
Cross currency swaps, net (GBP & EUR)	$	—	$	3,042		$	—		$	3,042
Foreign currency forwards, net (GBP & EUR)	$	—	$	2,203		$	—		$	2,203
Interest rate swaps, net (GBP & EUR)	$	—	$	(5,461	)	$	—		$	(5,461	)
OPP (see Note 12)	$	—	$	—		$	(14,300	)	$	(14,300	)

Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balances for the changes in the instrument with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2016:



(In thousands)	OPP
Beginning balance as of December 31, 2015	$	14,300
Fair value adjustment	(1,900		)
Ending balance as of September 30, 2016	$	12,400

Fair Value Inputs, Instruments Classified in Shareholders' Equity, Quantitative Information

The following table provides quantitative information about the significant Level 3 input used:



Financial Instrument	Fair Value at September 30, 2016		Principal Valuation Technique	Unobservable Inputs	Input Value
	(In thousands)
OPP	$	12,400	Monte Carlo Simulation	Expected volatility	25.0%

Fair Value, by Balance Sheet Grouping

The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below.



		Carrying Amount⁽¹⁾		Fair Value		Carrying Amount⁽²⁾		Fair Value
(In thousands)	Level	September 30, 2016		September 30, 2016		December 31, 2015		December 31, 2015
Mortgage notes payable ^{(1) (2)}	3	$	508,842	$	500,768	$	532,384	$	534,041
Credit Facility	3	$	671,023	$	671,023	$	717,286	$	717,286

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(1)	Carrying value includes $508.5 million gross mortgage notes payable and $0.3 million mortgage premiums, net as of September 30, 2016.


(2)	Carrying value includes $531.7 million gross mortgage notes payable and $0.7 million mortgage premiums, net as of December 31, 2015.