FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2013

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities that are measured at fair value on a recurring basis

	December 31, 2013								December 31, 2012
			Fair Value Measurements Using								Fair Value Measurements Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
			(In thousands)								(In thousands)
Liabilities:
Warrants	$	305,560	$	—	$	—	$	305,560	$	123,573	$	—	$	—	$	123,573
Interest rate swaps	$	4,164	$	—	$	4,164	$	—	$	7,183	$	—	$	7,183	$	—

Schedule of reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level 3)

	December 31,
	2013		2012			2011
	(In thousands)
Beginning of year	$	123,573	$	127,764		$	227,348
Warrant liability loss (gain) (a)		181,987		185,017			(101,584	)
Settlements (b)		—		(189,208	)		—
Purchases		—		—			2,000
End of year	$	305,560	$	123,573		$	127,764

(a)

The unrealized losses during 2013 and 2012 related to the Sponsors and Management warrants held as of December 31, 2013 and 2012, of $182.0 million and $73.8 million, respectively. The gain for 2011 was also unrealized.

(b)

Settlements were for $80.5 million in cash and 1,525,272 shares of our common stock. Please refer to Note 3 – Sponsors and Management Warrants.

Schedule of significant unobservable input used in the fair value measurement of warrants designated as Level 3

	Fair Value		Valuation Technique	Unobservable Input	Volatility
	(In thousands)
Warrants	$	305,560	Option Pricing Valuation Model	Expected Volatility (a)		32.9	%

(a)

Based on the asset volatility of comparable companies.

Summary of assets and liabilities that were measured at fair value on a non-recurring basis

Investment in Real Estate Affiliates	Total Fair Value Measurement as of December 31,			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Loss Year Ended December 31,
	(In thousands)
2012	$	22,405	(a)	$	22,405	$	—	$	—	$	—

(a)

We measured our equity interest in Millennium Waterway Apartments based on our purchase of our partner's 23.5% economic interest in Millennium Waterway Apartments. We used Level 1 inputs for the cash payment.

Schedule of estimated fair values of the Company's financial instruments that are not measured at fair value on a recurring basis

	December 31, 2013					December 31, 2012
	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
	(In thousands)
Assets:
Notes receivable, net	$	20,554	$	20,554		$	27,953	$	27,953
Tax indemnity receivable, including interest		320,494		(a	)		319,622		(a	)
Liabilities:
Fixed-rate debt	$	971,786	$	1,012,461		$	158,636	$	158,879
Variable-rate debt (b)		509,737		509,737			479,964		479,964
SID bonds		33,100		32,837			49,712		56,475
Total mortgages, notes and loans payable	$	1,514,623	$	1,555,035		$	688,312	$	695,318

(a)

It is not practicable to estimate the fair value of the tax indemnity receivable, including interest, as the timing and ultimate amount received under contract is highly dependent on numerous future events that cannot be reliably predicted.

(b)

As more fully described below, $172.0 million of variable-rate debt has been swapped to a fixed rate for the term of the related debt.