FAIR VALUES OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2012

FAIR VALUES OF FINANCIAL INSTRUMENTS

FAIR VALUES OF FINANCIAL INSTRUMENTS

As of September 30, 2012 and December 31, 2011, the carrying amounts and fair values of our financial instruments were as follows:

	September 30, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In thousands)
Assets:
Cash and cash equivalents	$	58,530	$	58,530	$	45,807	$	45,807
Secured loans receivable, net		215,775		221,225		212,577		216,315
Derivative instruments		—		—		11		11
Marketable debt securities		42,950		42,950		43,331		43,331
Unsecured loans receivable, net		60,877		64,001		63,598		65,219
Liabilities:
Senior notes payable and other debt, gross		7,264,105		7,327,567		6,180,443		6,637,691
Derivative instruments and other liabilities		90,751		90,751		80,815		80,815
Redeemable OP unitholder interests		113,908		113,908		102,837		102,837

        Fair value estimates are subjective in nature and based upon several important assumptions, including estimates of future cash flows, risks, discount rates and relevant comparable market information associated with each financial instrument. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented above are not necessarily indicative of the amounts we would realize in a current market exchange.

        As of September 30, 2012, we held corporate marketable debt securities, classified as available-for-sale and included within other assets on our Consolidated Balance Sheets, having an aggregate amortized cost basis and fair value of $42.1 million and $43.0 million, respectively. As of December 31, 2011, our marketable debt securities had an aggregate amortized cost basis and fair value of $41.2 million and $43.3 million, respectively. The contractual maturities of our marketable debt securities range from October 1, 2012 to April 15, 2016. In October 2012, $37.5 million of our corporate marketable debt securities matured at par. During the first quarter of 2011, we sold certain marketable debt securities for $23.1 million in aggregate proceeds and recognized gains from these sales of approximately $1.8 million (which are included in income from loans and investments in our Consolidated Statement of Income for the nine months ended September 30, 2011).