Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value, Liabilities Measured on Recurring Basis

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015, aggregated by the level in the fair value hierarchy within which those instruments fall.



(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total
June 30, 2016
Cross currency swaps, net (GBP & EUR)	$	—	$	2,555		$	—		$	2,555
Foreign currency forwards, net (GBP & EUR)	$	—	$	4,004		$	—		$	4,004
Interest rate swaps, net (GBP & EUR)	$	—	$	(17,245	)	$	—		$	(17,245	)
OPP (see Note 12)	$	—	$	—		$	(11,000	)	$	(11,000	)
December 31, 2015
Cross currency swaps, net (GBP & EUR)	$	—	$	3,042		$	—		$	3,042
Foreign currency forwards, net (GBP & EUR)	$	—	$	2,203		$	—		$	2,203
Interest rate swaps, net (GBP & EUR)	$	—	$	(5,461	)	$	—		$	(5,461	)
OPP (see Note 12)	$	—	$	—		$	(14,300	)	$	(14,300	)

Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balance for the changes in the instrument with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2016:



(In thousands)	OPP
Beginning balance as of December 31, 2015	$	14,300
Fair value adjustment	(3,300		)
Ending balance as of June 30, 2016	$	11,000

Fair Value Inputs, Instruments Classified in Shareholders' Equity, Quantitative Information

The following table provides quantitative information about the significant Level 3 input used:



Financial Instrument	Fair Value at June 30, 2016		Principal Valuation Technique	Unobservable Inputs	Input Value
	(In thousands)
OPP	$	11,000	Monte Carlo Simulation	Expected volatility	23.0%

Fair Value, by Balance Sheet Grouping

The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below.



		Carrying Amount⁽¹⁾		Fair Value		Carrying Amount⁽²⁾		Fair Value
(In thousands)	Level	June 30, 2016		June 30, 2016		December 31, 2015		December 31, 2015
Mortgage notes payable ^{(1) (2)}	3	$	513,754	$	505,768	$	532,384	$	534,041
Credit Facility	3	$	673,674	$	673,674	$	717,286	$	717,286

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(1)	Carrying value includes $513.3 million gross mortgage notes payable and $0.4 million mortgage premiums, net as of June 30, 2016.


(2)	Carrying value includes $531.7 million gross mortgage notes payable and $0.7 million mortgage premiums, net as of December 31, 2015.