Senior Notes Payable

12 Months Ended

Dec. 31, 2012

Senior Notes Payable [Abstract]

Senior Notes Payable

11. Senior Notes Payable

In August 2012 the Trust issued a total $86,250,000 of its 7.75% Senior Notes due August 2022 (the “Senior Notes”) at an issue price of 100% of par value. The Trust received net proceeds of approximately $83,228,000, after deducting the underwriting discounts, commissions and offering expenses of $3,022,000.

The Senior Notes mature on August 15, 2022 and bear interest at the rate of 7.75% per year, payable quarterly in arrears commencing November 15, 2012. The Trust may redeem the Senior Notes, in whole or in part, at any time or from time to time on or after August 15, 2015 at a redemption price in cash equal to 100% of the principal amount redeemed plus accrued and unpaid interest.

The Senior Notes rank senior to all of the Trust’s future indebtedness that by its terms is expressly subordinate to the Notes; except as discussed below, pari passu to all of the existing and future liabilities of the Trust’s subsidiaries, including the Operating Partnership. However, the Notes will have priority with respect to a security interest in a promissory note issued by the Operating Partnership with a principal balance equal to the outstanding balance of the Senior Notes, which will be pari passu with all existing and future unsecured senior indebtedness of the Operating Partnership.

The indenture relating to the Senior Notes contains certain financial restrictions and requirements, including but not limited to cross-collateralization requirements on certain of its consolidated operating properties. At December 31, 2012, the Trust was in compliance with the financial restrictions and requirements.

The Trust determines the fair value of its Senior Notes using the quoted market price. The inputs used in determining the estimated fair value of the Trust’s Senior Notes are categorized as level 1 in the fair value hierarchy. The estimated fair value of the Trust’s Senior Note is greater than its carrying value by $2,933,000 at December 31, 2012.

The following table summarizes future principal repayments of mortgage loans payable, senior notes payable, notes payable and secured financings (not including fair market value adjustments) as of December 31, 2012 (in thousands):

Year	Amount
2013	$	35,628
2014		49,471
2015		31,134
2016		121,913
2017		63,730
Thereafter		116,948
	$	418,824