Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments

Schedule of derivative instruments

The following table summarizes the Company’s outstanding interest-rate swap contracts as of September 30, 2011 (dollars in thousands):

Date Entered	Maturity Date	Hedge Designation	Fixed Rate		Floating Rate Index	Notional Amount		Fair Value(1)
July 2005(2)	July 2020	Cash Flow	3.82	%	BMA Swap Index	$	45,600	$	(7,133	)
November 2008(3)	October 2016	Cash Flow	5.95	%	1 Month LIBOR+1.50%	27,800		(4,219		)
July 2009(4)	July 2013	Cash Flow	6.13	%	1 Month LIBOR+3.65%	14,000		(496		)

(1)Interest-rate swap assets are recorded in other assets, net and interest-rate swap liabilities are recorded in accounts payable and accrued liabilities on the condensed consolidated balance sheets.

(2) Represents three interest-rate swap contracts with an aggregate notional amount of $45.6 million, which hedge fluctuations in interest payments on variable-rate secured debt due to overall changes in hedged cash flows.

(3)Acquired in conjunction with mortgage debt assumed related to real estate acquired on December 28, 2010. Hedges fluctuations in interest payments on variable-rate secured debt due to fluctuations in the underlying benchmark interest rate.

(4)Hedges fluctuations in interest payments on variable-rate secured debt due to fluctuations in the underlying benchmark interest rate.

Schedule of effect of change in interest rate

		Effects of Change in Interest Rates
Date Entered	Maturity Date	+50 Basis Points		-50 Basis Points			+100 Basis Points		-100 Basis Points
July 2005	July 2020	$	1,683	$	(2,019	)	$	3,535	$	(3,870	)
November 2008	October 2016	659		(654		)	1,315		(1,310		)
July 2009	July 2013	119		(124		)	241		(246		)