SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2012

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 16              SUBSEQUENT EVENTS

As disclosed in Note 2 - Sponsors and Management Warrants, we have issued warrants to purchase 8.0 million shares of our common stock to certain sponsors.  In early November, Brookfield Asset Management, Inc. (“Brookfield”), one of our sponsors, exercised warrants to purchase 1,525,272 shares of our common stock at an exercise price of $50.00 per warrant or $76.3 million.  In addition, we agreed to purchase Brookfield’s remaining warrants to purchase 2,308,061 shares of our common stock for $89.3 million.  The cash consideration paid to Brookfield net of the exercise price was $13.0 million.  The warrant liability included in our condensed consolidated balance sheet as of September 30, 2012 associated with these warrants that has subsequently been settled was $110.3 million.  As a result of these transactions, an additional warrant liability loss of $11.4 million related to Brookfield’s warrants will be recorded in our financial statements in the fourth quarter.

As a result of superstorm Sandy, South Street Seaport which is one of our operating assets located in lower Manhattan in New York City, suffered damage due to flooding. We believe that our insurance will cover most of the cost of repairing the property and the surrounding area and also will compensate us for any rental income or other revenue that is lost as a result of the storm or the recovery from the storm. Consequently, we do not believe that Hurricane Sandy, or the resulting damage, will have a significant impact on our earnings.