8. Impairment – Real Estate

Management periodically assesses its real estate for possible impairment whenever certain events or changes in circumstances indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations and eventual disposition. Events or circumstances that may occur include significant changes in real estate market conditions and the ability of the Company to re-lease or sell properties that are vacant or become vacant. Impairments are measured as the amount by which the current book value of the asset exceeds the estimated fair value of the asset. As a result of the Company’s review of Real Estate Investments, including identifiable intangible assets, the Company recognized the following real estate impairments for the nine months ended September 30:

	2011
Continuing operations	$	13,500,000
Discontinued operations		-

Total	$	13,500,000

Real Estate Investments measured as fair value due to impairment charges are considered fair value measurements on a non recurring basis. The following table presents the assets and liabilities carried on the balance sheet within the fair value hierarchy (as described above) as of September 30, 2011, for which a nonrecurring change in fair value has been recorded during the nine months ended September 30, 2011.

2011 (in thousands):		Fair Value as of measurement date				Quoted prices in active markets for identical assets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Impairment Charge
Real Estate Investments		$	19,805			$	0			$	7,100			$	12,705			$	13,500

The loss of $13.5 million represents an impairment charge related to Real Estate Investments which was included in net income during the nine months ended September 30, 2011. The fair value of certain Real Estate Investments was calculated differently based on available information. Real Estate Investments considered to be measured based on Level 1 inputs were based on actual sales negotiations and bona fide purchase offers received from third parties. Real Estate Investments considered to be measured based on Level 2 inputs were based on broker opinions of value or analysis of recent comparable sales transactions. Real Estate Investments considered to be measured based on Level 3 inputs were based on an internal valuation model using discounted cash flow analyses and income capitalization using market lease rates and market cap rates. These cash flow projections incorporate assumptions developed from the perspective of market participants valuing the Real Estate Investments. During the nine months ended September 30, 2010, the Company recorded no impairment charge related to Real Estate Investments.