Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value, Liabilities Measured on Recurring Basis

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those instruments fall.



(In thousands)	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3			Total
June 30, 2017
Cross currency swaps, net (GBP & EUR)	$	—	$	11,648		$	—		$	11,648
Foreign currency forwards, net (GBP & EUR)	$	—	$	2,337		$	—		$	2,337
Interest rate swaps, net (GBP & EUR)	$	—	$	(11,931	)	$	—		$	(11,931	)
Put options (GBP & EUR)	$	—	$	323		$	—		$	323
OPP (see Note 13)	$	—	$	—		$	(5,300	)	$	(5,300	)
December 31, 2016
Cross currency swaps, net (GBP & EUR)	$	—	$	21,179		$	—		$	21,179
Foreign currency forwards, net (GBP & EUR)	$	—	$	6,998		$	—		$	6,998
Interest rate swaps, net (GBP & EUR)	$	—	$	(15,457	)	$	—		$	(15,457	)
Put options (GBP & EUR)	$	—	$	523		$	—		$	523
OPP (see Note 13)	$	—	$	—		$	(13,400	)	$	(13,400	)

Fair Value, Instruments Classified in Shareholders' Equity Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balances for the changes in the instrument with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2017:



(In thousands)	OPP
Beginning Balance as of December 31, 2016	$	13,400
Fair value adjustment	(8,100		)
Ending balance as of June 30, 2017	$	5,300

Fair Value Inputs, Instruments Classified in Shareholders' Equity, Quantitative Information

The following table provides quantitative information about the significant Level 3 input used:



Financial Instrument	Fair Value at June 30, 2017		Principal Valuation Technique	Unobservable Inputs	Input Value
	(In thousands)
OPP	$	5,300	Monte Carlo Simulation	Expected volatility	20.0%

Fair Value, by Balance Sheet Grouping

The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported below.



		Carrying Amount		Fair Value		Carrying Amount		Fair Value
(In thousands)	Level	June 30, 2017		June 30, 2017		December 31, 2016		December 31, 2016
Mortgage notes payable ^{(1) (2)}	3	$	775,088	$	770,686	$	752,484	$	747,870
Credit Facility ⁽³⁾	3	$	722,108	$	722,108	$	616,614	$	616,614
Mezzanine Facility ⁽⁴⁾	3	$	—	$	—	$	55,383	$	55,400

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⁽¹⁾	Carrying value includes $777.5 million gross mortgage notes payable and $2.4 million mortgage discount/(premium), net as of June 30, 2017.


⁽²⁾	Carrying value includes $755.0 million gross mortgage notes payable and $2.5 million mortgage discount/(premium), net as of December 31, 2016.


⁽³⁾	On July 24, 2017, the Company terminated the Credit Facility and repaid the outstanding balance primarily with proceeds from the New Credit Facility (see Note 5 — Credit Borrowings for further details).


⁽⁴⁾	Carrying value includes $55.4 million Mezzanine Facility and $17,000 mezzanine discount, net as of December 31, 2016.