Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value of Assets and Liabilities

Assets and liabilities measured at fair value

The table below presents the fair value of certain of our assets and liabilities at September 30, 2011 categorized by the level of inputs used in the valuation of each asset or liability.

Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Assets held for sale (1)	$	850	$	—	$	850
Investments in available for sale securities (2)	$	15,330	$	15,330	$	—
Unsecured senior notes (3)	$	696,946	$	696,946	$	—

(1) Assets held for sale consist of one of our properties that we expect to sell that is reported at fair value.  We used offers to purchase the properties made by third parties or comparable sales transactions (Level 2 inputs) to determine the fair value of this property and, during the three months ended September 30, 2011, recognized an impairment of assets charge of $1,028 to reduce its value to the amount stated.  We have recorded cumulative impairments of approximately $5,738 to this property in order to reduce its carrying value to fair value, or $850, at September 30, 2011.  In addition, during 2011 we recorded an impairment of assets charge of $166 related to two properties that we sold in May and June 2011.

(2) Our investments in available for sale securities include our 250,000 common shares of CWH and 4,235,000 common shares of Five Star. The fair values of these shares are based on quoted prices at September 30, 2011 in active markets (Level 1 inputs).

(3) We estimate the fair values of our unsecured senior notes using an average of the bid and ask price of our three issuances of senior notes (Level 1 inputs) on or about September 30, 2011.  The fair values of these senior note obligations exceed their book values of $670,849 by $26,097 because these notes were trading at a premium to their face amounts.