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DERIVATIVE FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2011
DERIVATIVE FINANCIAL INSTRUMENTS  
DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 8—DERIVATIVE FINANCIAL INSTRUMENTS

        As of December 31, 2011, the Company had the following outstanding interest rate derivatives, all of which were designated as cash flow hedges of interest rate risk (amounts in thousands):

Interest Rate Derivative
  Notional
Amount 		  Fixed Interest
Rate 		  Maturity Date

Interest Rate Swap

   $ 9,288     6.50 % December 2014

Interest Rate Swap

   $ 4,410     5.75 % November 2020

Interest Rate Swap

   $ 3,972     4.75 % August 2016

Interest Rate Swap

   $ 2,200     4.50 % April 2016

        The following table presents the fair value of the Company's interest rate derivatives designated as hedging instruments for the periods presented (amounts in thousands):

Asset Derivatives
As of December 31, 		  Liability Derivatives
As of December 31, 		 
2011   2010   2011   2010  
Balance Sheet
Location 		  Fair
Value 		  Balance Sheet
Location 		  Fair
Value 		  Balance Sheet
Location 		  Fair
Value 		  Balance Sheet
Location 		  Fair
Value 		 
Other Assets   $ 0   Other Assets   $ 126   Other Liabilities   $ 923   Other Liabilities   $ 302  

        The following table presents the effect of the Company's interest rate derivatives that were designated as cash flow hedges on the consolidated statement of income for the periods presented (amounts in thousands):

 
   Years Ended December 31,  
 
   2011   2010   2009  

Amount of (loss) recognized on derivative in Other Comprehensive Income

   $ (1,098 ) $ (523 ) $ (24 )

Amount of (loss) reclassified from Accumulated Other Comprehensive Income into Interest Expense

   $ (351 ) $ (236 ) $ (135 )

        During 2009, the Company recorded an $111,000 gain on hedge ineffectiveness attributable to the late designation of one of the Company's interest rate swaps which was recorded as a reduction of interest expense. During 2011 and 2010, the Company did not record any ineffectiveness. In addition, during 2009 the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the Company's termination of the loan agreement on this interest rate swap due to the sale of the mortgaged property. The accelerated amount was a gain of $63,000 reclassified out of other comprehensive income into earnings as a reduction to interest expense. There were no accelerated amounts recorded during 2011 or 2010. The Company estimates that in 2012 an additional $339,000 will be reclassified from other comprehensive income as an increase to interest expense.

        The following table presents the effect of the Company's interest rate derivative that was not designated as a cash flow hedge on the consolidated statement of income for 2009 (amounts in thousands):

Derivative Not Designated As Hedging Instrument
  Location of Gain Recognized in
Income on Derivative 		  Gain Recognized
on Derivative 		 

Interest Rate Swap

   Interest Expense   $ 201  

        The interest rate derivative agreements in effect at December 31, 2011 provide that if the wholly-owned subsidiary of the Company which is a party to the agreement defaults or is capable of being declared in default on any of its indebtedness, then a default can be declared on such subsidiary's derivative obligation. In addition, the Company is a party to one of the derivative agreements and if the subsidiary defaults on the loan subject to the derivative agreement to which the Company is a party, the Company could be held liable for interest rate swap breakage losses, if any.

        As of December 31, 2011, the fair value of the interest rate derivatives in a liability position including accrued interest but excluding any adjustments for nonperformance risk was approximately $999,000. If the Company breaches the derivative contracts, it could be required to settle its obligations thereunder at their termination liability value of $999,000.

        Two of the Company's unconsolidated joint ventures, in which a wholly owned subsidiary of the Company is a 50% partner, had an interest rate derivative outstanding at December 31, 2011 with a notional amount of $3,952,000. The interest rate derivative, which was entered into in March 2011, has an interest rate of 5.81% and matures in April 2018. The Company's 50% share of the interest rate derivative is $1,976,000 and its 50% share of the value is $(182,000) as of December 31, 2011 and is included in "Investment in Unconsolidated Joint Ventures" on the Company's balance sheet. The Company's 50% share of loss recognized in other comprehensive income was $225,000 for 2011 and the amount of loss reclassified from accumulated other comprehensive income into equity in earnings of unconsolidated joint ventures was $43,000 for 2011.