Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Trust Assets Measured on a Recurring Basis

The table below presents the Trust’s assets measured at fair value on a recurring basis as of September 30, 2013 according to the level in the fair value hierarchy within which those measurements fall (in thousands):


Recurring Basis	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Assets and Liabilities
Securities carried at fair value	$	7,074	$	—		$	—	$	7,074
Loan securities carried at fair value		—		—			226		226
Interest rate hedges		—		(14	)		—		(14	)

	$	7,074	$	(14	)	$	226	$	7,286

The table below presents the Trust’s assets measured at fair value on a recurring basis as of December 31, 2012, according to the level in the fair value hierarchy within which those measurements fall (in thousands):


Recurring Basis	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Securities carried at fair value	$	19,694	$	—	$	—	$	19,694
Loan securities carried at fair value		—		—		11		11
Interest rate hedges		—		8		—		8

	$	19,694	$	8	$	11	$	19,713

Change in Fair Value for Financial Instruments

The table below includes a roll forward of the balance sheet amounts from January 1, 2013 to September 30, 2013 and from January 1, 2012 to September 30, 2012 including the change in fair value, for financial instruments classified by the Trust within Level 3 of the valuation hierarchy (in thousands). When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement.


Loan Securities Carried at Fair Value	Nine Months Ended September 30, 2013		Nine Months Ended September 30, 2012

Fair value, January 1	$	11	$	5,309
Net unrealized gain		215		447

Fair value, September 30	$	226	$	5,756


The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2013 and 2012, respectively	$	215	$	447

Trust Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The Table below presents the Trust’s assets measured at fair value on a non-recurring basis as of September 30, 2013, according to the level in the fair value hierarchy within which those measurements fall (in thousands):


Non-Recurring Basis	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Assets held for sale	$	—	$	—	$	2,421	$	2,421

	$	—	$	—	$	2,421	$	2,421

Carrying Value and Estimated Fair Value of Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis but required to be disclosed at fair value were as follows (in thousands):


	September 30, 2013
					Fair value hierarchy level
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3

Loans receivable	$	108,163	$	122,876	$	—	$	—	$	122,876
Secured financing receivable		30,395		30,395		—		—		30,395
Mortgage loans payable		308,049		296,678		—		—		296,678
Senior notes payable		86,250		89,666		89,666		—		—
Secured financings		29,150		29,366		—		—		29,366
Notes payable		1,664		1,664		—		—		1,664


	December 31, 2012
					Fair value hierarchy level
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3

Loans receivable	$	211,250	$	222,246	$	—	$	—	$	222,246
Mortgage loans payable		280,576		270,923		—		—		270,923
Senior notes payable		86,250		89,183		89,183		—		—
Secured financings		52,920		53,253		—		—		53,253
Notes payable		1,676		1,676		—		—		1,676

Trust's Financial Assets for Which the Fair Value Option was Elected

The following table presents as of September 30, 2013 and December 31, 2012 the Trust’s financial assets for which the fair value option was elected (in thousands):


Financial Instruments at Fair Value	September 30, 2013		December 31, 2012
Assets
Securities carried at fair value:
REIT common shares	$	7,074	$	19,694
Loan securities carried at fair value		226		11

	$	7,300	$	19,705

Difference Between Fair Values and the Aggregate Contractual Amounts

The table below presents as of September 30, 2013 the difference between fair values and the aggregate contractual amounts due for which the fair value option has been elected (in thousands):


	Fair Value at September 30, 2013		Amount Due Upon Maturity		Difference
Assets
Loan securities carried at fair value	$	226	$	1,130	$	904

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items and (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures; (2) for items included in the income statement: (a) a description of how interest and dividends are measured and where they are reported in the income statement; (b) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) qualitative information about the reasons for the changes and (ii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

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