Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2017

The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:



	December 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Derivative assets⁽¹⁾	$	—	$	12,586	$	—	$	12,586	$	—	$	5,935	$	—	$	5,935
Derivative liabilities	—		265		—		265		—		1,303		—		1,303

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(1)	Included in the prepaid expenses and other assets, net line item in the Consolidated Balance Sheets.

Other Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs.

The table below represents the carrying value and fair value of the Company’s notes payable as of:



	December 31, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Unsecured notes payable⁽¹⁾⁽²⁾	$	1,974,278	$	1,960,560	$	2,025,000	$	2,011,210
Secured notes payable⁽³⁾	464,311		458,441		682,839		669,924

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(1)	Amounts represent notes payable excluding unamortized deferred financing costs.


(2)	The $400.0 million senior registered notes were issued at a discount. The discount, net of amortization was $722 thousand at December 31, 2017 and is included within unsecured notes payable.


(3)	Includes balances related to properties that have been classified as held for sale.