Mortgages and Notes Payable

On January 13, 2012, the Company procured a $215,000 secured term loan from Wells Fargo Bank, National Association ("Wells Fargo"), as agent. The term loan is secured by ownership interest pledges by certain subsidiaries that collectively own a borrowing base of properties. The secured term loan matures in January 2019. The secured term loan requires regular payments of interest only at interest rates ranging from LIBOR plus 2.00% to 2.85% dependent on the Company's leverage ratio, as defined therein. Upon the date when the Company obtains an investment grade debt rating from at least two of Standard & Poor's, Moody's and Fitch, Inc., the interest rate under the secured term loan will be dependent on the Company's debt rating. The Company may not prepay any outstanding borrowings under the secured term loan facility through January 12, 2013, but may prepay outstanding borrowings thereafter at a premium through January 12, 2016 and at par thereafter. During the nine months ended September 30, 2012, the Company entered into interest-rate swap agreements to fix LIBOR at a weighted-average rate of 1.49% through January 2019 on the $215,000 of outstanding LIBOR-based borrowings. At September 30, 2012, the Company had $215,000 outstanding under the secured term loan (see note 16).

In addition, on January 13, 2012, the Company refinanced its $300,000 secured revolving credit facility, which was scheduled to expire in January 2014, with a new $300,000 secured revolving credit facility with KeyBank N.A. ("KeyBank"), as agent. The new secured revolving credit facility has the same security as the new secured term loan. The new secured revolving credit facility bears interest at LIBOR plus 1.625% to 2.375% based on the Company's leverage ratio, as defined. Upon the date when the Company obtains an investment grade debt rating from at least two of Standard & Poor's, Moody's and Fitch, Inc., the interest rate under the new secured revolving credit facility will be dependent on the Company's debt rating. The new secured revolving credit facility matures in January 2015 but can be extended until January 2016 at the Company's option. With the consent of the lenders, the Company can increase the size of the secured revolving credit facility by $225,000 for a total secured revolving credit facility size of $525,000 by adding properties to the borrowing base or admitting additional lenders. The borrowing availability of the secured revolving credit facility is based upon the net operating income, as defined, of the properties comprising the borrowing base. At September 30, 2012, the secured revolving credit facility had an outstanding balance of $93,000, outstanding letters of credit of $3,744 and availability of $203,256. The new secured revolving credit facility and the new secured term loan are subject to financial covenants, which the Company was in compliance with at September 30, 2012 (see note 16).

The Company had $25,000 and $35,551 secured term loans with KeyBank, which were satisfied in January 2012 and the Company recognized debt satisfaction charges of $1,578 as a result of the satisfaction.

During the first quarter of 2010, the Company issued $115,000 aggregate principal amount of 6.00% Convertible Guaranteed Notes due 2030. The notes pay interest semi-annually in arrears and mature in January 2030. The holders of the notes may require the Company to repurchase their notes in January 2017, January 2020 and January 2025 for cash equal to 100% of the notes to be repurchased, plus any accrued and unpaid interest. The Company may not redeem any notes prior to January 2017, except to preserve its REIT status. The notes have a current conversion rate of 144.2599 common shares per one thousand principal amount of the notes, representing a conversion price of approximately $6.93 per common share. The conversion rate is subject to adjustment under certain circumstances, including increases in the Company's dividend rate above a certain threshold and the issuance of stock dividends. The notes are convertible by the holders under certain circumstances for cash, common shares or a combination of cash and common shares at the Company's election. The notes are convertible prior to the close of business on the second business day immediately preceding the stated maturity date, at any time beginning in January 2029 and also upon the occurrence of specified events (see note 16).

During 2007, the Company issued an aggregate $450,000 of its 5.45% Exchangeable Guaranteed Notes due 2027. The Company prepaid $387,850 of the notes prior to 2012 and the remaining $62,150 of notes were repurchased by the Company and satisfied in January 2012 pursuant to a holder repurchase option. This resulted in debt satisfaction charges of $44.

Below is a summary of additional disclosures related to the 6.00% Convertible Guaranteed Notes and the 5.45% Exchangeable Guaranteed Notes.



	6.00% Convertible Guaranteed Notes						5.45% Exchangeable Guaranteed Notes
Balance Sheets:	September 30, 2012			December 31, 2011			September 30, 2012		December 31, 2011
Principal amount of debt component	$	115,000		$	115,000		$	—	$	62,150
Unamortized discount	(8,398		)	(9,851		)	—		(48		)
Carrying amount of debt component	$	106,602		$	105,149		$	—	$	62,102
Carrying amount of equity component	$	13,134		$	13,134		$	—	$	20,293
Effective interest rate	8.1		%	8.1		%	—		7.0		%
Period through which discount is being amortized, put date	01/2017			01/2017			—		01/2012
Aggregate if-converted value in excess of aggregate principal amount	$	45,258		$	7,907		$	—	$	—



	Three months ended September 30,				Nine months ended September 30,
Statements of Operations:	2012		2011		2012		2011
6.00% Convertible Guaranteed Notes
Coupon interest	$	1,725	$	1,725	$	5,175	$	5,175
Discount amortization	484		484		1,453		1,453
	$	2,209	$	2,209	$	6,628	$	6,628
5.45% Exchangeable Guaranteed Notes
Coupon interest	$	—	$	847	$	188	$	2,540
Discount amortization	—		166		34		498
	$	—	$	1,013	$	222	$	3,038

During the nine months ended September 30, 2012 and 2011, in connection with the satisfaction of mortgage notes other than those disclosed elsewhere in these financial statements, the Company incurred debt satisfaction gains (charges), net of $(17) and $3, respectively.