6 MORTGAGE NOTES PAYABLE

The Company’s mortgage notes payable are summarized as follows:

	2012		2011

Fixed rate mortgage notes payable	$	1,967,026	$	2,058,724
Variable rate mortgage notes payable	198,001		202,112
Mortgage notes payable	$	2,165,027	$	2,260,836

For 2012 and 2011, mortgage notes payable are collateralized by certain apartment communities as detailed in Schedule III. The mortgage notes payable outstanding as of December 31, 2012 mature at various dates from 2013 through 2030, with a weighted average remaining term of approximately five years. The weighted average interest rate of the Company’s fixed rate notes was 5.30% and 5.34% at December 31, 2012 and 2011, respectively. The weighted average interest rate of the Company’s variable rate notes was 2.77% and 2.98% at December 31, 2012 and 2011, respectively.

Principal payments on the mortgage notes payable for years subsequent to December 31, 2012 are as follows:

2013	$	224,607
2014	106,377
2015	276,400
2016	345,791
2017	276,684
Thereafter	935,168
	$	2,165,027

Prepayment penalties of $2,202, $13 and $190 were incurred for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in interest expense. Included in the 2012 prepayment penalties of $2,202, are penalties of $2,115 which were incurred in connection with the sale of property and are included in discontinued operations.

Deferred financing costs of $45, $72 and $340 were written off for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in interest expense. For 2010, deferred financing costs written off of $216 were incurred in connection with the deconsolidation of the VIE and are included in discontinued operations. For 2012, deferred financing costs written off of $42 were incurred in connection with the sale of property and are included in discontinued operations. For 2012, 2011 and 2010, deferred financing costs written off of $3, $72 and $124, respectively, were incurred in connection with the repayment of mortgages and are included in interest expense from continuing operations.