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Note 11 - Fair Value Measurements
 3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

11. Fair Value Measurements


All financial instruments of the Company are reflected in the accompanying Condensed 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 disclosed.  The valuation method used to estimate fair value for fixed-rate and variable-rate debt is based on discounted cash flow analyses, with assumptions that include credit spreads, market yield curves, trading activity, loan amounts and debt maturities.  The fair values for marketable securities are based on published values, securities dealers’ estimated market values or comparable market sales.  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):


   

March 31, 2015

   

December 31, 2014

 
   

Carrying

Amounts

   

Estimated

Fair Value

   

Carrying

Amounts

   

Estimated

Fair Value

 

Marketable securities (1)

  $ 105,253     $ 105,108     $ 90,235     $ 90,035  
                                 

Notes payable (2)

  $ 3,679,237     $ 3,836,369     $ 3,171,742     $ 3,313,936  
                                 

Mortgages payable (3)

  $ 2,042,014     $ 2,103,356     $ 1,424,228     $ 1,481,138  

(1)

As of March 31, 2015 and December 31, 2014, the Company determined that $102.7 million and $87.7 million, respectively, of the Marketable securities estimated fair value were classified within Level 1 of the fair value hierarchy and the remaining $2.4 million and $2.3 million, respectively, were classified within Level 3 of the fair value hierarchy.


(2)

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


(3)

The Company determined that its valuation of Mortgages payable was classified within Level 3 of the fair value hierarchy. 


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. 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.


The table below presents the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):


   

Balance at

March 31, 2015

   

Level 1

   

Level 2

   

Level 3

 

Assets:

                               

Marketable equity securities

  $ 102,732     $ 102,732     $ -     $ -  

Liabilities:

                               

Interest rate swaps

  $ 1,756     $ -     $ 1,756     $ -  

   

Balance at

December 31, 2014

   

Level 1

   

Level 2

   

Level 3

 

Assets:

                               

Marketable equity securities

  $ 87,659     $ 87,659     $ -     $ -  

Liabilities:

                               

Interest rate swaps

  $ 1,404     $ -     $ 1,404     $ -  

Assets measured at fair value on a non-recurring basis at March 31, 2015 and December 31, 2014, are as follows (in thousands):


   

Balance at

March 31, 2015

   

Level 1

   

Level 2

   

Level 3

 
                                 

Real estate

  $ 11,000     $ -     $ -     $ 11,000  

   

Balance at

December 31, 2014

   

Level 1

   

Level 2

   

Level 3

 
                                 

Real estate

  $ 80,270     $ -     $ -     $ 80,270  

During the three months ended March 31, 2015, the Company recognized impairment charges related to adjustments to property carrying values of $6.5 million of which $0.1 million, before noncontrolling interests and income taxes, is included in discontinued operations. During the three months ended March 31, 2014, the Company recognized impairment charges of $6.9 million of which $6.7 million, before noncontrolling interests and income taxes, is included in discontinued operations. These impairment charges consist of $6.8 million related to adjustments to property carrying values and $0.1 million related to other investments.


The Company’s estimated fair values, as it relates to property carrying values were primarily based upon estimated sales prices from third party offers based on signed contracts, appraisals or letters of intent for which the Company does not have access to the unobservable inputs used to determine these estimated fair values.


Based on these inputs the Company determined that its valuation of these investments was classified within Level 3 of the fair value hierarchy. (See Footnote 2 for additional discussion regarding impairment charges).