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Noncontrolling Interests on the Company's Consolidated Financial Statements
9 Months Ended
Sep. 30, 2012
Noncontrolling Interest [Abstract]  
Noncontrolling Interests on the Company's Consolidated Financial Statements
Noncontrolling Interests on the Company's Consolidated Financial Statements
7.45% Series A Cumulative Redeemable Preferred Units of the Operating Partnership
On August 15, 2012 (the "Series A Redemption Date"), the Company redeemed all 1,500,000 outstanding 7.45% Series A Cumulative Redeemable Preferred Units representing preferred limited partnership interests in the Operating Partnership ("Series A Preferred Units"). On the Redemption Date, the Series A Preferred Units were redeemed at a redemption price equal to $50.00 per unit, representing $75.0 million in aggregate, plus all accrued and unpaid distributions to the Series A Redemption Date.
During the three and nine months ended September 30, 2012, we recognized a non-recurring non-cash charge of $2.1 million as a reduction to net income available to common stockholders for the original issuance costs related to the Series A Preferred Units.
Common Units of the Operating Partnership
The Company owned a 97.6%, 97.2% and 97.1% common general partnership interest in the Operating Partnership as of September 30, 2012, December 31, 2011, and September 30, 2011, respectively. The remaining 2.4%, 2.8% and 2.9% common limited partnership interest as of September 30, 2012, December 31, 2011 and September 30, 2011, respectively, was owned by non-affiliate investors and certain of our executive officers and directors in the form of noncontrolling common units. There were 1,826,503, 1,718,131 and 1,718,131 common units outstanding held by these investors, executive officers and directors as of September 30, 2012, December 31, 2011 and September 30, 2011, respectively. The increase in the common units from December 31, 2011 to September 30, 2012 was attributable to 118,372 units issued in connection with an operating property acquisition (see Note 2).
The noncontrolling common units may be redeemed by unitholders for cash. We, at our option, may satisfy the cash redemption obligation with shares of the Company's common stock on a one-for-one basis. Whether satisfied in cash or shares of the Company's common stock, the value for each noncontrolling common unit upon redemption is the amount equal to the average of the closing quoted price per share of the Company's common stock, par value $.01 per share, as reported on the NYSE for the ten trading days immediately preceding the applicable balance sheet date. The aggregate value upon redemption of the then-outstanding noncontrolling common units was $84.4 million and $64.7 million as of September 30, 2012 and December 31, 2011, respectively. This redemption value does not necessarily represent the amount that would be distributed with respect to each noncontrolling common unit in the event of our termination or liquidation. In the event of our termination or liquidation, it is expected in most cases that each common unit would be entitled to a liquidating distribution equal to the liquidating distribution payable in respect of each share of the Company's common stock.