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Indebtedness | 9 Months Ended
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Sep. 30, 2012
Indebtedness | 5. Indebtedness The following table discloses certain information regarding our indebtedness:
|  | Outstanding Balance at |  |  | Interest Rate at September 30, 2012 |  |  | Effective Interest Rate at Issuance |  |  | Maturity Date
|  | September 30, 2012 |  |  | December 31, 2011 |  |  |  |
Mortgage and Other Loans Payable, Net |  | $ | 781,366 |  |  | $ | 690,256 |  |  |  | 4.03% - 9.25 | % |  |  | 4.03% - 9.25 | % |  | January 2013 - September 2022
Unamortized Premiums |  |  | (257 | ) |  |  | (305 | ) |  |  |  |  |  |  |  |  |  |
Mortgage and Other Loans Payable, Gross |  | $ | 781,109 |  |  | $ | 689,951 |  |  |  |  |  |  |  |  |  |  |
Senior Unsecured Notes, Net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2016 Notes |  | $ | 159,497 |  |  | $ | 159,455 |  |  |  | 5.750 | % |  |  | 5.91 | % |  | 01/15/16
2017 Notes |  |  | 55,383 |  |  |  | 59,600 |  |  |  | 7.500 | % |  |  | 7.52 | % |  | 12/01/17
2027 Notes |  |  | 6,066 |  |  |  | 6,065 |  |  |  | 7.150 | % |  |  | 7.11 | % |  | 05/15/27
2028 Notes |  |  | 68,977 |  |  |  | 124,894 |  |  |  | 7.600 | % |  |  | 8.13 | % |  | 07/15/28
2012 Notes |  |  | — |  |  |  | 61,817 |  |  |  | 6.875 | % |  |  | 6.85 | % |  | 04/15/12
2032 Notes |  |  | 12,490 |  |  |  | 34,683 |  |  |  | 7.750 | % |  |  | 7.87 | % |  | 04/15/32
2014 Notes |  |  | 79,336 |  |  |  | 86,997 |  |  |  | 6.420 | % |  |  | 6.54 | % |  | 06/01/14
2017 II Notes |  |  | 106,738 |  |  |  | 106,716 |  |  |  | 5.950 | % |  |  | 6.37 | % |  | 05/15/17
Subtotal |  | $ | 488,487 |  |  | $ | 640,227 |  |  |  |  |  |  |  |  |  |  |
Unamortized Discounts |  |  | 2,958 |  |  |  | 4,625 |  |  |  |  |  |  |  |  |  |  |
Senior Unsecured Notes, Gross |  | $ | 491,445 |  |  | $ | 644,852 |  |  |  |  |  |  |  |  |  |  |
Unsecured Credit Facility |  | $ | 27,000 |  |  | $ | 149,000 |  |  |  | 2.175 | % |  |  | 2.175 | % |  | 12/12/14
Mortgage and Other Loans Payable, Net During the three months ended September 30, 2012, we originated 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 September 30, 2012 |
I-VI |  | $ | 100,599 |  |  |  | 4.03 | % |  |  | August 29, 2012 |  |  |  | September 1, 2022 |  |  |  | 30-year |  |  |  | 31 |  |  | 3.8 |  | $ | 104,711 |
For Mortgage Financings I through VI, 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. As of September 30, 2012, mortgage and other loans payable are collateralized by, and in some instances cross-collateralized by, industrial properties with a net carrying value of $976,321 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 and other loans payable as of September 30, 2012. Senior Unsecured Notes, Net On April 16, 2012, we paid off and retired our 2012 Notes, at maturity, in the amount of $61,829. On January 20, 2012, we repurchased and retired a portion of our 2028 Notes prior to maturity as reflected in the table below. In connection with this repurchase prior to maturity, we recognized $1 as gain on retirement of debt for the nine months ended September 30, 2012, which is the difference between the repurchase price of $406 and the principal amount retired of $430, net of the pro rata write off of unamortized loan fees and the unamortized settlement amount of the interest rate protection agreements related to the repurchase of $3 and $20, respectively. On March 29, 2012, we announced a cash tender offer to purchase up to an aggregate of $100,000 of our 2014 Notes, 2027 Notes, 2028 Notes and 2032 Notes. The tender offer expired on April 25, 2012. During the tender offer, we repurchased and retired certain of our senior unsecured debt prior to its maturity as reflected in the table below. In connection with these repurchases prior to maturity, we recognized $6,223 as loss from retirement of debt for the nine months ended September 30, 2012, which is the difference between the repurchase price of $88,922 and the principal amount retired of $86,925, 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 $578, $609, $2,599 and $440, respectively. On September 6, 2012, we repurchased and retired a portion of our 2017 Notes prior to maturity as reflected in the table below. In connection with this repurchase prior to maturity, we recognized $424 as loss on retirement of debt for the three and nine months ended September 30, 2012, which is the difference between the repurchase price of $4,632 and the principal amount retired of $4,223, net of the pro rata write off of the unamortized debt issue discount and the unamortized loan fees related to the repurchase of $2 and $13, respectively During the nine months ended September 30, 2012, we repurchased and retired the following senior unsecured notes prior to maturity:
|  | Principal Amount Repurchased |  |  | Purchase Price |
Senior Unsecured Notes Repurchases |  |  |  |  |  |  |  |
2014 Notes |  | $ | 9,000 |  |  | $ | 9,439 |
2017 Notes |  |  | 4,223 |  |  |  | 4,632 |
2028 Notes |  |  | 55,955 |  |  |  | 57,041 |
2032 Notes |  |  | 22,400 |  |  |  | 22,848 |
|  | $ | 91,578 |  |  | $ | 93,960 |
Indebtedness The following is a schedule of the stated maturities and scheduled principal payments as of September 30, 2012 of our indebtedness, exclusive of premiums and discounts, for the next five years ending December 31, and thereafter:
|  | Amount |
Remainder of 2012 |  | $ | 3,682 |
2013 |  |  | 14,944 |
2014 |  |  | 175,917 |
2015 |  |  | 64,017 |
2016 |  |  | 295,476 |
Thereafter |  |  | 745,518 |
Total |  | $ | 1,299,554 |
Our unsecured credit facility (the “Unsecured Credit Facility”) and the indentures governing our senior unsecured notes contain certain financial covenants, including limitations on incurrence of debt and debt service coverage. Under the Unsecured Credit Facility, an event of default can 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 as of September 30, 2012. However, these financial covenants are complex and there can be no assurance that these provisions would not be interpreted by our noteholders or lenders in a manner that could impose and cause us to incur material costs. Fair Value At September 30, 2012 and December 31, 2011, the fair values of our indebtedness were as follows:
|  | September 30, 2012 |  |  | December 31, 2011 |
|  | Carrying Amount |  |  | Fair Value |  |  | Carrying Amount |  |  | Fair Value |
Mortgage and Other Loans Payable, Net |  | $ | 781,366 |  |  | $ | 839,687 |  |  | $ | 690,256 |  |  | $ | 743,419 |
Senior Unsecured Notes, Net |  |  | 488,487 |  |  |  | 519,797 |  |  |  | 640,227 |  |  |  | 630,622 |
Unsecured Credit Facility |  |  | 27,000 |  |  |  | 27,000 |  |  |  | 149,000 |  |  |  | 149,000 |
Total |  | $ | 1,296,853 |  |  | $ | 1,386,484 |  |  | $ | 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 estimated 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 our 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.

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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 Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 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 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. + Details
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