Indebtedness

3 Months Ended

Mar. 31, 2012

Indebtedness [Abstract]

Indebtedness

5. Indebtedness

The following table discloses certain information regarding our indebtedness:

	Outstanding Balance at						Interest Rate  at March 31, 2012		Effective Interest Rate at Issuance		Maturity Date
	March 31, 2012			December 31, 2011
Mortgage and Other Loans Payable, Net	$	687,139		$	690,256			4.45% – 9.25%		4.45% – 9.25%		January 2013- October 2021
Unamortized Premiums		(289	)		(305	)
Mortgage and Other Loans Payable, Gross	$	686,850		$	689,951
Senior Unsecured Notes, Net
2016 Notes	$	159,469		$	159,455			5.750%		5.91%		01/15/16
2017 Notes		59,602			59,600			7.500%		7.52%		12/01/17
2027 Notes		6,065			6,065			7.150%		7.11%		05/15/27
2028 Notes		124,465			124,894			7.600%		8.13%		07/15/28
2012 Notes		61,827			61,817			6.875%		6.85%		04/15/12
2032 Notes		34,687			34,683			7.750%		7.87%		04/15/32
2014 Notes		87,344			86,997			6.420%		6.54%		06/01/14
2017 II Notes		106,723			106,716			5.950%		6.37%		05/15/17
Subtotal	$	640,182		$	640,227
Unamortized Discounts		4,240			4,625
Senior Unsecured Notes, Gross	$	644,422		$	644,852
Unsecured Credit Facility	$	115,000		$	149,000			2.342%		2.342%		12/12/14

As of March 31, 2012, mortgage and other loans payable are collateralized by, and in some instances cross-collateralized by, industrial properties with a net carrying value of $881,599 and one letter of credit in the amount of $537. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage and other loans payable as of March 31, 2012.

During the three months ended March 31, 2012, we repurchased and retired the following senior unsecured notes prior to maturity:

	Principal Amount Repurchased		Purchase Price
2028 Notes	$	430	$	406

In connection with these repurchases prior to maturity, we recognized $1 as gain on retirement of debt for the three months ended March 31, 2012, which is the difference between the repurchase price of $406 and the principal amount retired of $430, net of the pro rata write off of the unamortized debt issue discount, the unamortized loan fees and the unamortized settlement amount of the interest rate protection agreements related to the repurchases of $0, $3 and $20, respectively.

The following is a schedule of the stated maturities and scheduled principal payments as of March 31, 2012 of our indebtedness, exclusive of premiums and discounts, for the next five years ending December 31, and thereafter:

	Amount
Remainder of 2012	$	71,417
2013		13,164
2014		271,063
2015		62,088
2016		293,467
Thereafter		735,073
Total	$	1,446,272

Our unsecured credit facility (as amended, the “Unsecured Credit Facility”) and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility, an event of default can occur if the lenders, in their good faith judgment, determine that a material adverse change has occurred which could prevent timely repayment or materially impair our ability to perform our obligations under the loan agreement. We believe that we were in compliance with all covenants as of March 31, 2012. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our noteholders or lenders in a manner that could impose and cause us to incur material costs.

Fair Value

At March 31, 2012 and December 31, 2011, the fair values of our indebtedness were as follows:

	March 31, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgage and Other Loans Payable, Net	$	687,139	$	754,110	$	690,256	$	743,419
Senior Unsecured Notes, Net		640,182		639,824		640,227		630,622
Unsecured Credit Facility		115,000		115,000		149,000		149,000
Total	$	1,442,321	$	1,508,934	$	1,479,483	$	1,523,041

The fair values of our mortgage and other loans payable were determined by discounting the future cash flows using the current rates at which similar loans would be made based upon similar leverage levels and similar remaining maturities. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our mortgage and other loans payable was primarily based upon Level 3 inputs. The fair value of the senior unsecured notes was determined by quoted market prices (Level 1) or, for certain senior unsecured notes that are thinly traded, were based upon transactions for senior unsecured notes with comparable maturities (Level 2). The fair value of the Unsecured Credit Facility was determined by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term, assuming no repayment until maturity. The current market rate utilized for our Unsecured Credit Facility was internally estimated; therefore, we have concluded that our determination of fair value was primarily based upon Level 3 inputs.