6. INTEREST RATE SWAP CONTRACT

3 Months Ended

Mar. 31, 2012

Derivatives and Fair Value [Text Block]

6. INTEREST RATE SWAP CONTRACT

The Company is exposed to interest rate risk through its borrowing activities. In order to minimize the effect of changes in interest rates, the Company has entered into an interest rate swap contract under which the Company agrees to pay an amount equal to a specified rate of 7.57% times a notional principal approximating the outstanding loan balance, and to receive in return an amount equal to 2.45% plus the one-month LIBOR Rate times the same notional amount. The Company designated this interest rate swap contract as a cash flow hedge.

As of March 31, 2012 the fair value of this hedge was an unrealized loss of approximately $1,837,000, as compared with an unrealized loss of $1,975,000 as of December 31, 2011 which resulted in an unrealized gain of $138,000 (or $69,000, net of noncontrolling interest) for the three months ended March 31, 2012. This amount has been recorded as other comprehensive income and will be reclassified to interest expense over the life of the contract.

The following tables present the required disclosures in accordance with ASC Topic 815-10:

Fair Values of Derivative Instruments:

			Liability Derivative
	March 31, 2012				December 31, 2011
		Balance			Balance
		Sheet		Fair	Sheet		Fair
		Location		Value	Location		Value
Derivatives designated as hedging instruments:
Interest rate swap contract		Liabilities	$	1,837,000	Liabilities	$	1,975,000
Total derivatives designated as hedging instruments under ASC Topic 815			$	1,837,000		$	1,975,000

The Effect of Derivative Instruments on the Statements of Comprehensive Income
for the Three Months Ended March 31, 2012 and 2011:

	Amount of Gain
	Recognized in OCI on
	Derivative
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships	(Effective Portion)
	For the three		For the three
	Months ended		Months ended
	March 31, 2012		March 31, 2011
Interest rate swap contracts	$	69,000	130,500
Total	$	69,000	130,500