Derivative Financial Instruments

9 Months Ended

Sep. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

11. Derivative Financial Instruments

The Trust has exposure to fluctuations in market interest rates. The Trust seeks to limit its risk to interest rate fluctuations through match financing on its assets as well as through hedging transactions.

The Trust’s objective in using interest rate derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Trust primarily uses interest rate caps and interest rate swaps as part of its interest rate risk management strategy relating to certain of its variable rate debt instruments.

The effective portion of changes in fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change, if any, in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2013 interest rate caps and swaps were used to hedge the variable cash flows associated with existing variable-rate debt. The Trust also assesses, both at its inception and on an ongoing basis, whether the hedging instrument is highly effective in achieving offsetting changes in the cash flows attributable to the hedged item. The Trust has recorded changes in fair value related to the effective portion of its interest rate hedges designated and qualifying as cash flow hedges as comprehensive loss totaling $150,000 and $20,000 for the three and nine months ended September 30, 2013, and $16,000 and $73,000 for the three and nine months ended September 30, 2012, respectively.

The table below presents information about the Trust’s interest rate caps and interest rate swaps that are included on the consolidated balance sheet that were designated as cash flow hedges of interest rate risk at September 30, 2013 (in thousands):

Maturity	Strike Rate			Notional Amount of Hedge		Cost of Hedge		Estimated Fair Value of Hedge in Other Comprehensive Income			Unrealized (Loss) Gain on Hedge in Other Comprehensive Income			Change in Hedge Valuations Included in Other Comprehensive Income for the Three Months Ended September 30, 2013			Change in Hedge Valuations Included in Other Comprehensive Income for the Nine Months Ended September 30, 2013
Aug 2014		0.50	%	$	13,197	$	22	$	1		$	—		$	(3	)	$	(4	)
May 2016		0.50	%	$	42,922	$	—	$	(15	)	$	(15	)	$	(147	)	$	(15	)

The table below presents information about the Trust’s interest rate caps that were not designated as cash flow hedges at September 30, 2013 (in thousands):

Maturity	Strike Rate			Notional Amount of Hedge		Cost of Hedge		Estimated Fair Value		Change in Cap Valuations Included in Interest Expense for the Three Months Ended September 30, 2013		Change in Cap Valuations Included in Interest Expense for the Nine Months Ended September 30, 2013
May 2013		1.25	%	$	—	$	196	$	—	$	—	$	—
May 2014		1.75	%		51,982		434		—		—		—
Oct 2014		1.00	%		5,753		174		—		1		1

The table below presents information about the Trust’s interest rate caps and interest rate swaps that are included on the consolidated balance sheet that were designated as cash flow hedges of interest rate risk at September 30, 2012 (in thousands):

Maturity	Strike Rate			Notional Amount of Hedge		Cost of Hedge		Estimated Fair Value of Hedge in Other Comprehensive Income			Unrealized Gain on Hedge in Other Comprehensive Income		Change in Hedge Valuations Included in Other Comprehensive Income for the Three Months Ended September 30, 2012			Change in Hedge Valuations Included in Other Comprehensive Income for the Nine Months Ended September 30, 2012
Aug 2014		0.50	%	$	13,478	$	22	$	—		$	—	$	—		$	—
Oct 2014		1.00	%	$	21,000	$	174	$	(165	)	$	—	$	(17	)	$	(77	)

The table below presents information about the Trust’s interest rate caps that were not designated as cash flow hedges at September 30, 2012 (in thousands):

Maturity	Strike Rate			Notional Amount of Hedge		Cost of Hedge		Estimated Fair Value		Change in Cap Valuations Included in Interest Expense for the Three Months Ended September 30, 2012		Change in Cap Valuations Included in Interest Expense for the Nine Months Ended September 30, 2012
May 2013		1.25	%	$	51,982	$	196	$	—	$	—	$	18
May 2014		1.75	%		51,982		434		1		5		46