Fair Value Measures (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis, based on market rates of the Company’s positions and other observable interest rates as discussed in Note 6 –Investment Securities, at Fair Value andNote 11 –Derivatives and Hedging Activities, as of March 31, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands):

	Level 1		Level 2			Level 3		Balance as of March 31, 2017
Assets:
CMBS	$	—	$	—		$	42,630	$	42,630
Derivative assets	—		371			—		371
Total assets	$	—	$	371		$	42,630	$	43,001
Liabilities:
Derivative liabilities	$	—	$	(1,996	)	$	—	$	(1,996	)
	Level 1		Level 2			Level 3		Balance as of December 31, 2016
Assets:
CMBS	$	—	$	—		$	47,215	$	47,215
Derivative assets	—		199			—		199
Total assets	$	—	$	199		$	47,215	$	47,414
Liabilities:
Derivative liabilities	$	—	$	(3,547	)	$	—	$	(3,547	)

Reconciliations of Changes in (Liabilities) with Level 3 Inputs

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2017 and 2016 (in thousands):

	CMBS
Balance as of December 31, 2016	$	47,215
Total gains and losses
Unrealized loss included in other comprehensive income, net	(194		)
Purchases, issuance, settlements
Return of principal received	(3,469		)
Amortization included in net income, net	(922		)
Ending Balance, March 31, 2017	$	42,630

	CMBS
Balance as of December 31, 2015	$	53,304
Total gains and losses
Unrealized loss included in other comprehensive loss, net	(1,961		)
Purchases, issuance, settlements
Return of principal received	(3,217		)
Accretion included in net loss, net	36
Ending Balance, March 31, 2016	$	48,162

Reconciliations of Changes in Assets with Level 3 Inputs

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2017 and 2016 (in thousands):

	CMBS
Balance as of December 31, 2016	$	47,215
Total gains and losses
Unrealized loss included in other comprehensive income, net	(194		)
Purchases, issuance, settlements
Return of principal received	(3,469		)
Amortization included in net income, net	(922		)
Ending Balance, March 31, 2017	$	42,630

	CMBS
Balance as of December 31, 2015	$	53,304
Total gains and losses
Unrealized loss included in other comprehensive loss, net	(1,961		)
Purchases, issuance, settlements
Return of principal received	(3,217		)
Accretion included in net loss, net	36
Ending Balance, March 31, 2016	$	48,162

Fair Value, by Balance Sheet Grouping

The fair values of the Company’s financial instruments that are not reported at fair value in the consolidated balance sheets are reported below (dollar amounts in thousands):

	Level	Carrying Amount at March 31, 2017		Fair Value at March 31, 2017		Carrying Amount at December 31, 2016		Fair Value at December 31, 2016
Assets:
Mortgage notes receivable	3	$	22,545	$	30,355	$	22,764	$	30,460
Liabilities (1):
Mortgage notes payable and other debt, net	2	$	2,602,733	$	2,644,244	$	2,687,739	$	2,713,155
Corporate bonds, net	2	2,248,239		2,305,877		2,248,063		2,273,850
Convertible debt, net	2	988,367		1,007,731		987,106		1,004,733
Credit facility	2	500,000		500,000		500,000		500,000
Total liabilities		$	6,339,339	$	6,457,852	$	6,422,908	$	6,491,738

_______________________________________________

(1) Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs

Summary of Impairment Charges by Asset Class

The following table presents the impairment charges by asset class recorded during the three months ended March 31, 2017 (dollar amounts in thousands):

	Three Months Ended March 31, 2017
Properties impaired (1)	14
Asset classes impaired:
Investment in real estate assets, net	$	6,748
Below-market lease liabilities, net	(23		)
Total impairment loss	$	6,725

_______________________________________________

(1) None of these properties were disposed of during the three months ended March 31, 2017.