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Note 16 - Fair Value Disclosure of Financial Instruments
 12 Months Ended
Dec. 31, 2012
Fair Value Disclosures [Text Block]
16.  Fair Value Disclosure of Financial Instruments:

All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management’s estimation based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values, except those listed below, for which fair values are reflected.  The valuation method used to estimate fair value for fixed-rate and variable-rate debt and noncontrolling interests relating to mandatorily redeemable noncontrolling interests associated with finite-lived subsidiaries of the Company is based on discounted cash flow analyses, with assumptions that include credit spreads, loan amounts and debt maturities.  The fair values for marketable securities are based on published or securities dealers’ estimated market values.  Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition.

As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The following are financial instruments for which the Company’s estimate of fair value differs from the carrying amounts (in thousands):

   
December 31,
 
   
2012
   
2011
 
   
Carrying
Amounts
   
Estimated
Fair Value
   
Carrying
Amounts
   
Estimated
Fair Value
 
                         
Marketable Securities (1)
  $ 36,541     $ 36,825     $ 33,540     $ 33,908  
Notes Payable (2)
  $ 3,192,127     $ 3,408,632     $ 2,983,886     $ 3,136,728  
Mortgages Payable (3)
  $ 1,003,190     $ 1,068,616     $ 1,085,371     $ 1,166,116  
Construction Loans Payable (3)
  $ -     $ -     $ 45,128     $ 49,345  
Mandatorily Redeemable Noncontrolling Interests (termination dates ranging from 2019 – 2027) (4)
  $ -     $ -     $ 2,654     $ 5,044  

(1)  As of December 31, 2012, $33.4 million of these assets’ estimated fair value were classified within Level 1 of the fair value hierarchy and the remaining $3.4 million were classified within Level 3 of the fair value hierarchy.

(2)  The Company determined that its valuation of these Notes payable was classified within Level 2 of the fair value hierarchy. 

(3)  The Company determined that its valuation of these liabilities was classified within Level 3 of the fair value hierarchy. 

(4)  The Company sold its investment in the consolidated joint ventures that included mandatorily redeemable noncontrolling interests during 2012.

The Company has certain financial instruments that must be measured under the FASB’s Fair Value Measurements and Disclosures guidance, including: available for sale securities, convertible notes and derivatives. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Available for sale securities are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy.

The Company from time to time has used interest rate swaps to manage its interest rate risk. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts).  The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.  Based on these inputs, the Company has determined that interest rate swap valuations are classified within Level 2 of the fair value hierarchy.  The Company did not have any interest rate swaps as of December 31, 2012.

To comply with the FASB’s Fair Value Measurements and Disclosures guidance, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.  However, as of December 31, 2012, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011, aggregated by the level in the fair value hierarchy within which those measurements fall.

Assets measured at fair value on a recurring basis at December 31, 2012 and 2011 (in thousands):

   
Balance at
December 31, 2012
   
Level 1
   
Level 2
   
Level 3
 
Assets:
                       
Marketable equity securities
  $ 33,428     $ 33,428     $ -     $ -  

   
Balance at
December 31, 2011
   
Level 1
   
Level 2
   
Level 3
 
Assets:
                       
Marketable equity securities
  $ 30,462     $ 30,462     $ -     $ -  
Liabilities:
                               
Interest rate swaps
  $ 222     $ -     $ 222     $ -  

Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2012 and 2011 are as follows (in thousands):

   
Balance at
December 31, 2012
   
Level 1
   
Level 2
   
Level 3
 
Assets:
                       
Real estate
  $ 52,505     $ -     $ -     $ 52,505  

   
Balance at
December 31, 2011
   
Level 1
   
Level 2
   
Level 3
 
Assets:
                       
Real estate
  $ 5,289     $ -     $ -     $ 5,289  
Other investments
  $ 9,041     $ -     $ 9,041     $ -  

The Company’s estimated fair values for the year ended December 31, 2012, relating to the real estate assets measured on a non-recurring basis, which were non-retail assets, were based upon estimated sales prices from third party offers and comparable sales values ranging from $1.1 million to $42.0 million.  The Company does not have access to certain unobservable inputs used by these third parties to determine these estimated fair values (see footnote 6 for additional discussion related to these assets).  Certain assets in 2011 were valued through the usage of discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows were comprised of unobservable inputs which included contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observable rates that the Company believed to be within a reasonable range of current market rates for the respective properties.  Based on these inputs, the Company determined that its valuation in these investments was classified within Level 3 of the fair value hierarchy.