Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of fair value, assets and liabilities measured on recurring basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):



	December 31, 2016						December 31, 2015
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Money Market Funds	$	20,001	$	—	$	—	$	4	$	—	$	—
Derivative financial instruments	—		2,921		—		—		818		—
Liabilities
Derivative financial instruments	—		3,590		—		—		5,876		—

Schedule of derivative financial instruments

The Company had the following interest rate swaps for the periods presented (in thousands):



					Strike Rate				Fair Value at December 31,
Derivative Instrument	Aggregate Notional Amount		Effective Date	Maturity Date	Low		High	Balance Sheet Location	2016			2015
Core
Interest Rate Swaps	$	140,651	Oct 2011 - Mar 2015	Jul 2018 - Mar 2025	1.38%	—	3.77%	Other Liabilities	$	(3,218	)	$	(5,255	)
Interest Rate Swaps	190,407		Sep 2012 - Jul 2016	Jul 2020 - Jun 2026	1.24%	—	3.77%	Other Assets	2,609			815
	$	331,058							$	(609	)	$	(4,440	)

Fund II
Interest Rate Swaps	$	19,779	Oct 2014	Nov 2021	2.88%	—	2.88%	Other Liabilities	$	(228	)	$	(385	)
Interest Rate Caps	29,500		Apr 2013	Apr 2018	4%	—	4%	Other Assets	—			3
	$	49,279							$	(228	)	$	(382	)

Fund III
Interest Rate Caps	$	58,000	Dec 2016	Jan 2020	3%	—	3%	Other Assets	$	127		$	—

Fund IV
Interest Rate Swaps	$	14,509	May 2014	May 2019	1.78%	—	1.78%	Other Liabilities	$	(144	)	$	(236	)
Interest Rate Caps	108,900		Jul 2016 - Nov 2016	Aug 2019 - Dec 2019	3%	—	3%	Other Assets	185			—
	$	123,409							$	41		$	(236	)

Total asset derivatives									$	2,921		$	818
Total liability derivatives									$	(3,590	)	$	(5,876	)

Gain (loss) on derivative instruments within the statement of income

The following table presents the location in the financial statements of the (losses) income recognized related to the Company's cash flow hedges (in thousands):



	Year Ended December 31,
	2016		2015		2014
Amount of loss related to the effective portion recognized in other comprehensive income (loss)	$	646	$	5,061	$	9,061
Amount of loss related to the effective portion subsequently reclassified to earnings	—		—		—
Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing	—		—		—

Fair value, by balance sheet grouping

Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):



		December 31, 2016				December 31, 2015
	Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Notes Receivable ^(a)	3	$	276,163	$	272,052	$	147,188	$	147,188
Mortgage and Other Notes Payable, net ^(a)	3	1,055,728		1,077,926		1,050,051		1,072,473
Investment in non-traded equity securities	3	802		25,194		411		25,194
Unsecured notes payable, net ^(b)	2	432,990		435,779		287,755		288,964
Unsecured line of credit ^(c)	2	—		—		20,800		20,881

(a)

The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.


(b)	The Company determined the estimated fair value of the unsecured notes payable using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.


(c)	The Company determined the estimated fair value of the unsecured line of credit using a discounted cash flow model with rates that take into account the market-based credit spread and the Company's credit rating.