6. Indebtedness

The following table discloses certain information regarding our indebtedness:


	Outstanding Balance at						Interest Rate at December 31, 2012		Effective Interest Rate at Issuance		Maturity Date
	December 31, 2012			December 31, 2011			Interest Rate at December 31, 2012		Effective Interest Rate at Issuance		Maturity Date
Mortgage and Other Loans Payable, Net	$	763,616		$	690,256			4.03% – 8.26%		4.03% – 8.26%		January 2014 – September 2022
Unamortized Premiums		(161	)		(305	)

Mortgage and Other Loans Payable, Gross	$	763,455		$	689,951

Senior Unsecured Notes, Net
2016 Notes	$	159,510		$	159,455			5.750%		5.91%		01/15/16
2017 Notes		55,385			59,600			7.500%		7.52%		12/01/17
2027 Notes		6,066			6,065			7.150%		7.11%		05/15/27
2028 Notes		55,261			124,894			7.600%		8.13%		07/15/28
2012 Notes		—			61,817			N/A		N/A		04/15/12
2032 Notes		11,500			34,683			7.750%		7.87%		04/15/32
2014 Notes		79,683			86,997			6.420%		6.54%		06/01/14
2017 II Notes		106,745			106,716			5.950%		6.37%		05/15/17

Subtotal	$	474,150		$	640,227
Unamortized Discounts		2,570			4,625

Senior Unsecured Notes, Gross	$	476,720		$	644,852

Unsecured Credit Facility	$	98,000		$	149,000			1.912%		1.912%		12/12/14

Mortgage and Other Loans Payable, Net

During the years ended December 31, 2012 and 2011, we originated or assumed the following mortgage loans:

Mortgage

Financing

Loan
Principal

Interest
Rate

Origination
Date

Maturity
Date

Amortization
Period

Number of
Industrial
Properties
Collateralizing
Mortgage

GLA
(In millions)

Property
Carrying
Value at
December 31,
2012

I-VI

100,599

4.03

August 29, 2012

September 2022

30-year

3.8

103,671


Mortgage Financing	Loan Principal		Interest Rate			Origination/Assumption Date	Maturity Date	Amortization Period	Number of Industrial Properties Collateralizing Mortgage		GLA (In millions)		Property Carrying Value at December 31, 2011
VII-XIV	$	178,300		4.45	%	May 2, 2011	June 2018	30-year		32		5.9	$	206,291
XV		24,417		5.579	%	May 26, 2011	February 2016	30-year		1		0.7		28,991
XVI-XXVI		77,600		4.85	%	September 23, 2011	October 2021	30-year		24		2.3		84,403

	$	280,317											$	319,685

For Mortgage Financings I through XIV and Mortgage Financings XVI through XXVI, principal prepayments are prohibited for 12 months after loan origination, after which prepayment premiums are calculated at the greater of yield maintenance or 1% of the outstanding balance. For Mortgage Financing XV, principal prepayments are prohibited until three months prior to maturity, but defeasance is allowed subject to certain conditions.

During the years ended December 31, 2012 and 2011, we paid off and retired prior to maturity mortgage loans payable in the amount of $14,112 and $62,662, respectively. In connection with these repurchases prior to maturity, we recognized $361 and $2,128 as loss from retirement of debt for the years ended December 31, 2012 and 2011, respectively.

On September 20, 2011, we transferred title to a property totaling approximately 0.4 million square feet of GLA and an escrow balance in the amount of $1,845 to a lender in satisfaction of a $5,040 non-recourse mortgage loan. We recognized a $147 loss related to the transaction, which is included in loss from retirement of debt for the year ended December 31, 2011.

As of December 31, 2012, mortgage loans payable are collateralized by, and in some instances cross-collateralized by, industrial properties with a net carrying value of $949,557. We believe the Operating Partnership and the Company were in compliance with all covenants relating to mortgage loans payable as of December 31, 2012.

Senior Unsecured Notes, Net

During the years ended December 31, 2012 and 2011, we repurchased and retired the following senior unsecured notes prior to maturity:


	Principal Amount Repurchased				Purchase Price
	For the Year Ended December 31, 2012		For the Year Ended December 31, 2011		For the Year Ended December 31, 2012		For the Year Ended December 31, 2011
2014 Notes	$	9,000	$	1,144	$	9,439	$	1,143
2016 Notes		—		500		—		475
2017 Notes		4,223		27,619		4,632		27,506
2017 II Notes		—		10,969		—		10,182
2027 Notes		—		7,500		—		7,500
2028 Notes		69,680		65,025		72,541		63,861
2032 Notes		23,400		—		24,001		—

	$	106,303	$	112,757	$	110,613	$	110,667

In connection with these repurchases prior to maturity, we recognized $9,323 and $2,012 as loss from retirement of debt for the years ended December 31, 2012 and 2011, respectively, which is the difference between the purchase price of $110,613 and $110,667, respectively, and the principal amount retired of $106,303 and $112,757, respectively, net of the pro rata write-off of the unamortized debt issue discount, the unamortized deferred financing costs, the unamortized settlement amount of the interest rate protection agreements and the professional services fees related to the repurchases of $598, $728, $3,247 and $440, respectively, and $135, $717, $3,250 and $0, respectively.

On September 15, 2011, we paid off and retired our 4.625% Notes due 2011, at maturity, in the amount of $128,900.

On April 16, 2012, we paid off and retired our 2012 Notes, at maturity, in the amount of $61,829.

The indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. We believe the Operating Partnership and the Company were in compliance with all covenants relating to senior unsecured notes as of December 31, 2012. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our noteholders in a manner that could impose and cause us to incur material costs.

Unsecured Credit Facility

We have maintained an unsecured credit facility since 1997. During December 2011, we entered into a $450,000 unsecured revolving credit agreement (the “Unsecured Credit Facility”) which replaced our previous unsecured credit facility. We may request that the borrowing capacity under the Unsecured Credit Facility be increased to $500,000, subject to certain restrictions. We wrote off $1,172 of unamortized deferred financing costs reflected in Loss from Retirement of Debt for the year ended December 31, 2011 related to our previous unsecured credit facility. At December 31, 2012, the Unsecured Credit Facility provides for interest only payments at LIBOR plus 170 basis points or at a base rate plus 170 basis points, at our election. The margin on our LIBOR or base rate borrowings could increase based on our leverage ratio. The Unsecured Credit Facility matures on December 12, 2014, unless extended an additional one year at our election, subject to certain conditions. At December 31, 2012, borrowings under the Unsecured Credit Facility bore interest at a weighted average interest rate of 1.912%.

The Unsecured Credit Facility contains certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility, an event of default can also 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 relating to the Unsecured Credit Facility as of December 31, 2012. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our lenders in a manner that could impose and cause us to incur material costs.

Indebtedness

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


	Amount
2013	$	14,339
2014		234,097
2015		63,636
2016		295,309
2017		174,153
Thereafter		556,641

Total	$	1,338,175

Fair Value

At December 31, 2012 and 2011, the fair value of our indebtedness was as follows:


	December 31, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Mortgage and Other Loans Payable, Net	$	763,616	$	814,915	$	690,256	$	743,419
Senior Unsecured Debt, Net		474,150		516,943		640,227		630,622
Unsecured Credit Facility		98,000		98,192		149,000		149,000

Total	$	1,335,766	$	1,430,050	$	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 using rates, as advised by our bankers, that are based upon recent trades within the same series of the senior unsecured notes, recent trades for senior unsecured notes with comparable maturities, recent trades for fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We have determined that our estimation of the fair value of fixed rate unsecured debt was primarily based upon Level 3 inputs. 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.