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Indebtedness | 12 Months Ended
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Dec. 31, 2011
Indebtedness [Abstract] |
Indebtedness | 6. Indebtedness The following table discloses certain information regarding our indebtedness:
|  | Outstanding Balance at |  |  | Interest Rate at December 31, 2011 |  | Effective Interest Rate at Issuance |  | Maturity Date
|  | December 31, 2011 |  |  | December 31, 2010 |  |  |  |
Mortgage and Other Loans Payable, Net* |  | $ | 690,256 |  |  | $ | 486,055 |  |  | 4.45% – 9.25% |  | 4.45% – 9.25% |  | January 2013 – October 2021
Unamortized Premiums* |  |  | (305 | ) |  |  | (358 | ) |  |  |  |  |  |
Mortgage and Other Loans Payable, Gross* |  | $ | 689,951 |  |  | $ | 485,697 |  |  |  |  |  |  |
Senior Unsecured Notes, Net |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 Notes |  | $ | 159,455 |  |  | $ | 159,899 |  |  | 5.750% |  | 5.91% |  | 01/15/16
2017 Notes |  |  | 59,600 |  |  |  | 87,195 |  |  | 7.500% |  | 7.52% |  | 12/01/17
2027 Notes |  |  | 6,065 |  |  |  | 13,559 |  |  | 7.150% |  | 7.11% |  | 05/15/27
2028 Notes |  |  | 124,894 |  |  |  | 189,869 |  |  | 7.600% |  | 8.13% |  | 07/15/28
2012 Notes |  |  | 61,817 |  |  |  | 61,774 |  |  | 6.875% |  | 6.85% |  | 04/15/12
2032 Notes |  |  | 34,683 |  |  |  | 34,667 |  |  | 7.750% |  | 7.87% |  | 04/15/32
2014 Notes |  |  | 86,997 |  |  |  | 86,792 |  |  | 6.420% |  | 6.54% |  | 06/01/14
2011 Exchangeable Notes |  |  | — |  |  |  | 128,137 |  |  | N/A |  | N/A |  | 09/15/11
2017 II Notes |  |  | 106,716 |  |  |  | 117,637 |  |  | 5.950% |  | 6.37% |  | 05/15/17
Subtotal |  | $ | 640,227 |  |  | $ | 879,529 |  |  |  |  |  |  |
Unamortized Discounts |  |  | 4,625 |  |  |  | 6,980 |  |  |  |  |  |  |
Senior Unsecured Notes, Gross |  | $ | 644,852 |  |  | $ | 886,509 |  |  |  |  |  |  |
Unsecured Credit Facility |  | $ | 149,000 |  |  | $ | 376,184 |  |  | 2.385% |  | 2.385% |  | 12/12/14
* | Excludes $1,008 of Mortgage Loan Payable on Real Estate Held for Sale which is net of $48 of unamortized premiums as of December 31, 2010.
Mortgage and Other Loans Payable, Net During the year ended December 31, 2011, we originated or assumed the following mortgage loans:
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 |
I - VIII |  | $ | 178,300 |  |  |  | 4.45 | % |  | May 2, 2011 |  | June 2018 |  |  | 30-year |  |  |  | 32 |  |  |  | 5.9 |  |  | $ | 206,291 |
IX |  |  | 24,417 |  |  |  | 5.579 | % |  | May 26, 2011 |  | February 2016 |  |  | 30-year |  |  |  | 1 |  |  |  | 0.7 |  |  |  | 28,991 |
X-XX |  |  | 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 VIII and Mortgage Financings X through XX, 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 IX, principal prepayments are prohibited until three months prior to maturity, but defeasance is allowed subject to certain conditions. During the year ended December 31, 2011, we paid off and retired prior to maturity the following mortgage loans:
Loan Principal Paid Off |  | Interest Rate |  |  | Payoff Date |  | Maturity Date |  | (Loss) Gain on Retirement of Debt |
$14,520 |  |  | 6.75 | % |  | February 10, 2011 |  | September 2012 |  | $ | (213 | )
18,662 |  |  | 7.50 | % |  | March 9, 2011 |  | December 2014 |  |  | (813 | )
27,389 |  |  | 7.50 | % |  | April 1, 2011 |  | October 2014 |  |  | (1,104 | )
2,091 |  |  | 7.54 | % |  | November 30, 2011 |  | January 2012 |  |  | 2 |
$62,662 |  |  |  |  |  |  |  |  |  | $ | (2,128 | )
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 on retirement of debt for the year ended December 31, 2011. On April 30, 2010, we prepaid and retired our secured mortgage debt maturing in September 2024 in the amount of $1,654, excluding a prepayment fee of $17, which is included in Loss from Retirement of Debt. On December 1, 2010, we paid off and retired our secured mortgage debt maturing in December 2010 in the amount of $12,970. As of December 31, 2011, mortgage and other loans payable are collateralized by, and in some instances cross-collateralized by, industrial properties with a net carrying value of $889,722 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 loans payable as of December 31, 2011. Senior Unsecured Notes, Net During the years ended December 31, 2011 and December 31, 2010, we repurchased and retired the following senior unsecured notes prior to maturity:
|  | Principal Amount Repurchased |  |  | Purchase Price |
|  | For the Year Ended December 31, 2011 |  |  | For the Year Ended December 31, 2010 |  |  | For the Year Ended December 31, 2011 |  |  | For the Year Ended December 31, 2010 |
2011 Notes |  | $ | — |  |  | $ | 143,498 |  |  | $ | — |  |  | $ | 147,723 |
2011 Exchangeable Notes |  |  | — |  |  |  | 18,000 |  |  |  | — |  |  |  | 17,936 |
2012 Notes |  |  | — |  |  |  | 82,236 |  |  |  | — |  |  |  | 82,235 |
2014 Notes |  |  | 1,144 |  |  |  | 21,062 |  |  |  | 1,143 |  |  |  | 17,964 |
2016 Notes |  |  | 500 |  |  |  | — |  |  |  | 475 |  |  |  | — |
2017 Notes |  |  | 27,619 |  |  |  | — |  |  |  | 27,506 |  |  |  | — |
2017 II Notes |  |  | 10,969 |  |  |  | — |  |  |  | 10,182 |  |  |  | — |
2027 Notes |  |  | 7,500 |  |  |  | — |  |  |  | 7,500 |  |  |  | — |
2028 Notes |  |  | 65,025 |  |  |  | — |  |  |  | 63,861 |  |  |  | — |
|  | $ | 112,757 |  |  | $ | 264,796 |  |  | $ | 110,667 |  |  | $ | 265,858 |
In connection with these repurchases prior to maturity, we recognized $2,012 and $4,096 as loss from retirement of debt for the years ended December 31, 2011 and December 31, 2010, respectively, which is the difference between the repurchase price of $110,667 and $265,858, respectively, and the principal amount retired of $112,757 and $264,796, respectively, net of the pro rata write off of the unamortized debt issue discount, the unamortized loan fees, the unamortized settlement amount of the interest rate protection agreements and the professional services fees related to the repurchases of $135, $717, $3,250 and $0, respectively, and $1,707, $519, $(183) and $991 respectively. On September 15, 2011, we paid off and retired our 2011 Exchangeable Notes, at maturity, in the amount of $128,900. The indentures governing our senior unsecured notes contain certain 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 debt as of December 31, 2011. 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. Effective October 22, 2010, we amended our existing revolving credit facility to provide for a $200,000 term loan and a $200,000 revolving line of credit (together the “Old Credit Facility”). The Old Credit Facility was to mature on September 28, 2012. In connection with the amendment of the Old Credit Facility, we wrote off $191 of unamortized deferred financing costs associated with the decreased capacity of the agreement, which is included in Loss from Retirement of Debt for the year ended December 31, 2010. During June 2011, we made a permanent repayment of $100,000 on the term loan of our Old Credit Facility. During December 2011, we entered into a new $450,000 unsecured revolving credit agreement (the “Unsecured Credit Facility”) which replaced the Old 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 the Old Credit Facility. The Unsecured Credit Facility provides for interest only payments initially at LIBOR plus 210 basis points or at a base rate plus 210 basis points, at our election, 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, 2011, borrowings under the Unsecured Credit Facility bore interest at a weighted average interest rate of 2.385%. The Unsecured Credit Facility contains certain 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, 2011. 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. 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 |
2012 |  | $ | 74,518 |
2013 |  |  | 13,164 |
2014 |  |  | 305,063 |
2015 |  |  | 62,088 |
2016 |  |  | 293,467 |
Thereafter |  |  | 735,503 |
Total |  | $ | 1,483,803 |
Fair Value At December 31, 2011 and 2010, the fair value of our indebtedness was as follows:
|  | December 31, 2011 |  |  | December 31, 2010 |
|  | Carrying Amount |  |  | Fair Value |  |  | Carrying Amount |  |  | Fair Value |
Mortgage and Other Loans Payable, including mortgages Held for Sale |  | $ | 690,256 |  |  | $ | 743,419 |  |  | $ | 487,063 |  |  | $ | 548,696 |
Senior Unsecured Debt |  |  | 640,227 |  |  |  | 630,622 |  |  |  | 879,529 |  |  |  | 851,771 |
Unsecured Credit Facility |  |  | 149,000 |  |  |  | 149,000 |  |  |  | 376,184 |  |  |  | 376,184 |
Total |  | $ | 1,479,483 |  |  | $ | 1,523,041 |  |  | $ | 1,742,776 |  |  | $ | 1,776,651 |
The fair values of our mortgage loans payable 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.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
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