Real Estate Securities

3 Months Ended

Mar. 31, 2012

REAL ESTATE SECURITIES [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

REAL ESTATE SECURITIES

As of March 31, 2012, the Company had invested in CMBS as follows (in thousands):

Description	Credit Rating	Scheduled Maturity	Coupon Rate	Face Amount		Amortized Cost Basis		Unrealized Gains		Fair Value
CMBS	AAA	06/10/2044	5.14%	$	5,170	$	5,202	$	1	$	5,203
CMBS	AAA	05/10/2043	4.54%	6,591		6,653		50		6,703
CMBS (1)	AAA	08/15/2038	5.10%	13,312		13,524		7		13,531
CMBS (1)	AAA	07/15/2042	5.11%	9,342		9,405		49		9,454
CMBS (1)	AAA	07/15/2042	5.11%	4,198		4,226		22		4,248
CMBS (1)	AAA	12/15/2043	5.33%	16,739		17,100		167		17,267
				$	55,352	$	56,110	$	296	$	56,406

_____________________

⁽¹⁾ The Company has entered into repurchase agreements with respect to these securities. See Note 7, “Note Payable and Repurchase Agreements.”

As of March 31, 2012, the Company determined the fair value of the fixed rate CMBS to be $56.4 million, resulting in unrealized gains of $0.3 million for the three months ended March 31, 2012. During the three months ended March 31, 2012, the Company did not recognize any other-than-temporary impairments on its real estate securities. It is difficult to predict the timing or magnitude of other-than-temporary impairments and significant judgments are required in determining impairments, including, but not limited to, assumptions regarding estimated prepayments, losses and changes in interest rates. As a result, actual realized losses could materially differ from these estimates.

The following summarizes the activity related to real estate securities for the three months ended March 31, 2012 (in thousands):

	Amortized Cost Basis			Unrealized Gain (Loss)			Total
Real estate securities - December 31, 2011	$	58,648		$	(46	)	$	58,602
Principal repayments received on real estate securities	(2,252		)	—			(2,252		)
Unrealized gains	—			342			342
Amortization of premium on securities	(286		)	—			(286		)
Real estate securities - March 31, 2012	$	56,110		$	296		$	56,406

The following table presents the fair value and unrealized gains of the Company’s investments in real estate securities as of March 31, 2012 (in thousands):

	Holding Period of Unrealized Gains of Investments in  Real Estate Securities
	Less than 12 Months				12 Months or More				Total
Investment	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains  (Losses)		Fair Value		Unrealized Gains
Fixed Rate CMBS	$	56,406	$	296	$	—	$	—	$	56,406	$	296