FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2012

FAIR VALUE OF FINANCIAL INSTRUMENTS

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

June 30, 2012

December 31, 2011

Fair Value Measurements Using

Fair Value Measurements Using

Significant

Significant

Quoted Prices in

Other

Significant

Quoted Prices in

Other

Significant

Active Markets for

Observable

Unobservable

Active Markets

Observable

Unobservable

Identical Assets

Inputs

Inputs

for Identical

Inputs

Inputs

Total

(Level 1)

(Level 2)

(Level 3)

Total

Assets (Level 1)

(Level 2)

(Level 3)

(In thousands)

(In thousands)

Liabilities

Warrants

$

226,185

$

—

$

—

$

226,185

$

127,764

$

—

$

—

$

127,764

Interest rate swaps

6,697

—

6,697

—

4,367

—

4,367

—

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

	2012		2011
	(In thousands)
Balance as of December 31,	$	127,764	$	227,348
Warrant liability loss	98,421		69,135
Purchases	—		2,000
Balance as of June 30,	$	226,185	$	298,483

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

			Valuation	Unobservable	Range/
	Fair Value		Technique	Input	Average
	(In thousands)
			Option Pricing	Expected	27%-33%
Warrants	$	226,185	Valuation Model	Volatility (a)	(29.6%)

(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 as a result of partner's the acquisition of interest in the Millennium Waterway Apartments

Quoted Prices in

Significant

Total Loss (Gain)

Total Fair

Active Markets for

Other

Significant

Three and Six

Value

Identical Assets

Observable

Unobservable Inputs

Months Ended

Measurement

(Level 1)

Inputs (Level 2)

(Level 3)

June 30, 2012

(In thousands)

Investment in Real Estate Affiliates

$

22,405

$

22,405

(a)

$

—

$

—

$

—

(a)We measured our equity interest in Millennium Waterway Apartments based on our purchase of our partners 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

	June 30, 2012				December 31, 2011
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(In thousands)
Fixed-rate debt	$	142,624	$	144,098	$	83,164	$	85,047
Variable-rate debt (a)	465,046		465,046		468,100		468,100
SID bonds (b)	51,727		51,727		55,213		55,213
Total	$	659,397	$	660,871	$	606,477	$	608,360

(a) 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.

(b) Due to the uncertain repayment terms of the Special Improvement District (“SID”) bonds, the carrying value approximates fair value.