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Financial Instruments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):
 
 
September 30, 2017
 
December 31, 2016
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Money Market Funds
 
$
3

 
$
—

 
$
—

 
$
20,001

 
$
—

 
$
—

Derivative financial instruments
 
—

 
2,661

 
—

 
—

 
2,921

 
—

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
—

 
3,468

 
—

 
—

 
3,590

 
—
Schedule of derivative financial instruments
The Company had the following interest rate swaps for the periods presented (dollars in thousands):
 
Aggregate
Notional
Amount
 
 
Strike Rate
Balance Sheet Location
Fair Value
Derivative Instrument
Effective Date
Maturity Date
Low
 
High
September 30, 2017
 
December 31, 2016
Core
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
149,440

Oct 2011 - March 2015
July 2018 - Mar 2025
1.38%
—
3.77%
Other Liabilities
$
(2,936
)
 
$
(3,218
)
Interest Rate Swaps
204,593

Sep 2012 - July 2017
July 2020 - July 2027
1.24%
—
3.77%
Other Assets
2,622

 
2,609

 
$
354,033

 
 
 
 
 
 
$
(314
)
 
$
(609
)
 
 
 
 
 
 
 
 
 
 
 
Fund II
 
 
 
 
 
 
 
 
 
 
Interest Rate Swap
$
19,616

October 2014
November 2021
2.88%
—
2.88%
Other Liabilities
$
(168
)
 
$
(228
)
Interest Rate Cap
29,500

April 2013
April 2018
4.00%
—
4.00%
Other Assets
—

 
—

 
$
49,116

 
 
 
 
 
 
$
(168
)
 
$
(228
)
 
 
 
 
 
 
 
 
 
 
 
Fund III
 
 
 
 
 
 
 
 
 
 
Interest Rate Cap
$
58,000

Dec 2016
Jan 2020
3.00%
—
3.00%
Other Assets
$
17

 
$
127

 
 
 
 
 
 
 
 
 
 
 
Fund IV
 
 
 
 
 
 
 
 
 
 
Interest Rate Swaps
$
81,156

May 2014 - March 2017
May 2019 - April 2022
1.78%
—
1.98%
Other Liabilities
$
(364
)
 
$
(144
)
Interest Rate Caps
108,900

July 2016 - November 2016
August 2019 - December 2019
3.00%
—
3.00%
Other Assets
22

 
185

 
$
190,056

 
 
 
 
 
 
$
(342
)
 
$
41

 
 
 
 
 
 
 
 
 
 
 
Total asset derivatives
 
 
 
 
 
 
$
2,661

 
$
2,921

Total liability derivatives
 
 
 
 
 
 
$
(3,468
)
 
$
(3,590
)
Gain (loss) on derivative instruments within the statement of income
The following table presents the location in the financial statements of the income (losses) recognized related to the Company’s cash flow hedges (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Amount of (loss) income related to the effective portion recognized in other comprehensive income
$
(644
)
 
$
1,474

 
$
(2,652
)
 
(12,624
)
Amount of loss related to the effective portion subsequently reclassified to earnings
$
—

 
$
—

 
$
—

 
$
—

Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing
$
—

 
$
—

 
$
—

 
$
—
Fair value, by balance sheet grouping
The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):
 
 
 
 
September 30, 2017
 
December 31, 2016
 
 
Level
 
Carrying
Amount
 
Estimated
Fair
Value
 
Carrying
Amount
 
Estimated
Fair
Value
Notes Receivable (a)
 
3
 
$
250,194

 
$
247,143

 
$
276,163

 
$
272,052

Mortgage and Other Notes Payable, net (a)
 
3
 
1,060,550

 
1,066,539

 
1,071,034

 
1,077,926

Investment in non-traded equity securities (b)
 
3
 
—

 
22,904

 
802

 
25,194

Unsecured notes payable and Unsecured line of credit, net (c)
 
2
 
558,620

 
559,978

 
434,636

 
435,779


__________

(a)
The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.
(b)
Represents Fund II’s cost-method investment in Albertson’s supermarkets (Note 4).
(c)
The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.