DEBT

Our secured debt instruments generally feature either monthly interest and principal or monthly interest-only payments with balloon payments due at maturity. For purposes of classification in the following table, variable rate debt with a derivative financial instrument designated as a cash flow hedge is deemed as fixed rate debt due to the Operating Partnership having effectively established the fixed interest rate for the underlying debt instrument. Secured debt consists of the following as of June 30, 2012 (dollars in thousands):



	Principal Outstanding				Six Months Ended June 30,
	June 30, 2012		December 31, 2011		Weighted Average Interest Rate		Weighted Average Years to Maturity	Number of Communities Encumbered
Fixed Rate Debt
Mortgage notes payable	$	397,864	$	457,723	5.31	%	4.0	5
Fannie Mae credit facilities	370,789		444,899		4.90	%	6.7	10
Total fixed rate secured debt	768,653		902,622		5.11	%	5.2	15
Variable Rate Debt
Mortgage notes payable	37,415		37,415		1.06	%	1.0	2
Tax-exempt secured note payable	27,000		27,000		0.71	%	17.7	1
Fannie Mae credit facilities	137,187		222,608		2.55	%	6.6	5
Total variable rate secured debt	201,602		287,023		2.03	%	7.3	8
Total secured debt	$	970,255	$	1,189,645	4.47	%	5.6	23

As of June 30, 2012, the General Partner had secured credit facilities with Fannie Mae with an aggregate commitment of $932.8 million with $844.0 million outstanding. The Fannie Mae credit facilities are for an initial term of 10 years and bear interest at floating and fixed rates. At June 30, 2012, $632.6 million of the outstanding balance was fixed at a weighted average interest rate of 5.12% and the remaining balance of $211.4 million on these facilities had a weighted average variable interest rate of 2.08%. There was a total of $508.0 million of these credit facilities allocated to the Operating Partnership at June 30, 2012 based on the ownership of the assets securing the debt. Following is information related to the credit facilities allocated to the Operating Partnership:



	June 30, 2012			December 31, 2011
	(dollar amounts in thousands)
Borrowings outstanding	$	507,976		$	667,507
Weighted average borrowings during the period ended	580,527			721,054
Maximum daily borrowings during the period	634,826			732,423
Weighted average interest rate during the period ended	4.3		%	4.4		%
Interest rate at the end of the period	4.4		%	4.1		%

The Operating Partnership may from time to time acquire properties subject to fixed rate debt instruments. In those situations, management will record the secured debt at its estimated fair value and amortize any difference between the fair value and par to interest expense over the life of the underlying debt instrument. The unamortized fair value adjustment of the fixed rate debt instruments on the Operating Partnership’s properties was a net premium of $15.7 million and $17.8 million at June 30, 2012 and December 31, 2011, respectively.

Fixed Rate Debt

Mortgage notes payable. Fixed rate mortgage notes payable are generally due in monthly installments of principal and interest and mature at various dates from December 2015 through May 2019 and carry interest rates ranging from 3.43% to 5.94%.

Secured credit facilities. At June 30, 2012, the General Partner had borrowings against its fixed rate facilities of $632.6 million of which $370.8 million was allocated to the Operating Partnership based on the ownership of the assets securing the debt. As of June 30, 2012, the fixed rate Fannie Mae credit facilities allocated to the Operating Partnership had a weighted average fixed interest rate of 4.90%.

Variable Rate Debt

Mortgage notes payable. Variable rate mortgage notes payable are generally due in monthly installments of principal and interest and mature on July 2013. Interest on the variable rate mortgage notes is based on LIBOR plus some basis points, which translated into interest rate of 1.06% at June 30, 2012.

Tax-exempt secured note payable. The variable rate mortgage note payable that secures tax-exempt housing bond issues matures in March 2030. Interest on this note is payable in monthly installments. The mortgage note payable has an interest rate of 0.71% as of June 30, 2012.

Secured credit facilities. At June 30, 2012, the General Partner had borrowings against its variable rate facilities of $211.4 million of which $137.2 million was allocated to the Operating Partnership based on the ownership of the assets securing the debt. As of June 30, 2012, the variable rate borrowings under the Fannie Mae credit facilities allocated to the Operating Partnership had a weighted average floating interest rate of 2.55%.

The aggregate maturities of the Operating Partnership’s secured debt due during each of the next five calendar years subsequent to June 30, 2012 are as follows (dollars in thousands):



	Fixed				Variable
	Mortgage Notes		Credit Facilities		Mortgage Notes		Tax Exempt Notes Payable		Credit Facilities		Total
2012	$	4,181	$	151	$	—	$	—	$	—	$	4,332
2013	7,732		318		37,415		—		—		45,465
2014	7,960		336		—		—		—		8,296
2015	192,853		356		—		—		—		193,209
2016	131,924		374		—		—		—		132,298
Thereafter	53,214		369,254		—		27,000		137,187		586,655
Total	$	397,864	$	370,789	$	37,415	$	27,000	$	137,187	$	970,255

Guarantor on Unsecured Debt

The Operating Partnership is a guarantor on the General Partner’s unsecured credit facility, with an aggregate borrowing capacity of $900 million, a $250 million term loan due January 2016, a $100 million term loan due December 2016, $300 million of medium-term notes due June 2018, and $400 million of medium-term notes due January 2022. As of June 30, 2012, there were no outstanding borrowings under the credit facility. As of December 31, 2011, the outstanding balance under the unsecured credit facility was $421.0 million.