Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | W. P. Carey Inc. | |
Entity Central Index Key | 1,025,378 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 161,063,481 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in real estate: | ||
Land, buildings and improvements | $ 5,794,494 | $ 5,457,265 |
Net investments in direct financing leases | 702,151 | 721,607 |
In-place lease and other intangible assets | 1,199,785 | 1,213,976 |
Above-market rent intangible assets | 626,390 | 640,480 |
Investments in real estate | 8,322,820 | 8,033,328 |
Accumulated depreciation and amortization | (1,485,056) | (1,329,613) |
Assets held for sale, net | 108,730 | 0 |
Net investments in real estate | 6,946,494 | 6,703,715 |
Equity investments in the Managed Programs and real estate | 366,306 | 341,457 |
Cash and cash equivalents | 176,612 | 162,312 |
Due from affiliates | 82,547 | 105,308 |
Other assets, net | 305,295 | 274,650 |
Goodwill | 641,734 | 643,960 |
Total assets | 8,518,988 | 8,231,402 |
Debt: | ||
Senior unsecured notes, net | 3,007,453 | 2,474,661 |
Unsecured revolving credit facility | 696,380 | 216,775 |
Unsecured term loans, net | 0 | 388,354 |
Non-recourse mortgages, net | 959,951 | 1,185,477 |
Debt, net | 4,663,784 | 4,265,267 |
Accounts payable, accrued expenses and other liabilities | 265,676 | 263,053 |
Below-market rent and other intangible liabilities, net | 105,898 | 113,957 |
Deferred income taxes | 98,933 | 67,009 |
Dividends payable | 111,688 | 109,766 |
Total liabilities | 5,245,979 | 4,819,052 |
Redeemable noncontrolling interest | 1,300 | 965 |
Commitments and contingencies (Note 11) | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.001 par value, 450,000,000 shares authorized; 107,214,394 and 106,922,616 shares, respectively, issued and outstanding | 107 | 107 |
Additional paid-in capital | 4,445,426 | 4,433,573 |
Distributions in excess of accumulated earnings | (1,165,914) | (1,052,064) |
Deferred compensation obligation | 36,159 | 46,656 |
Accumulated other comprehensive loss | (254,055) | (236,011) |
Total stockholders’ equity | 3,061,723 | 3,192,261 |
Noncontrolling interests | 209,986 | 219,124 |
Total equity | 3,271,709 | 3,411,385 |
Total liabilities and equity | $ 8,518,988 | $ 8,231,402 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
W. P. Carey stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares outstanding (shares) | 107,214,394 | 106,922,616 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment Management: | ||||
Revenues | $ 209,384 | $ 210,754 | $ 612,337 | $ 651,341 |
Operating Expenses | ||||
Depreciation and amortization | 67,825 | 64,040 | 198,119 | 189,319 |
General and administrative | 15,863 | 17,236 | 50,888 | 53,189 |
Reimbursable tenant and affiliate costs | 12,021 | 11,608 | 34,814 | 61,330 |
Property expenses, excluding reimbursable tenant costs | 7,953 | 10,556 | 26,760 | 31,196 |
Subadvisor fees | 3,127 | 5,206 | 7,014 | 11,598 |
Stock-based compensation expense | 2,475 | 4,635 | 14,392 | 14,649 |
Merger and other expenses | 1,673 | 65 | 4,328 | 1,138 |
Restructuring and other compensation | 0 | 1,356 | 0 | 9,074 |
Dealer manager fees and expenses | 0 | 462 | 0 | 6,544 |
Impairment charges | 0 | 0 | 4,790 | 0 |
Total operating expenses | 110,937 | 115,164 | 341,105 | 378,037 |
Other Income and Expenses | ||||
Interest expense | (41,740) | (41,182) | (121,125) | (125,374) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 18,363 | 16,318 | 46,246 | 47,820 |
Other gains and (losses) | 8,875 | (4,569) | 16,698 | (4,969) |
Total other income and expenses | (14,502) | (29,433) | (58,181) | (82,523) |
Income before income taxes and gain on sale of real estate | 83,945 | 66,157 | 213,051 | 190,781 |
Provision for income taxes | (2,715) | (1,760) | (2,975) | (2,903) |
Income before gain on sale of real estate | 81,230 | 64,397 | 210,076 | 187,878 |
Gain on sale of real estate, net of tax | 343 | 19,257 | 18,987 | 22,732 |
Net Income | 81,573 | 83,654 | 229,063 | 210,610 |
Net income attributable to noncontrolling interests | (4,225) | (3,376) | (10,760) | (8,530) |
Net Income Attributable to W. P. Carey | $ 77,348 | $ 80,278 | $ 218,303 | $ 202,080 |
Basic Earnings Per Share (usd per share) | $ 0.71 | $ 0.74 | $ 2.02 | $ 1.87 |
Diluted Earnings Per Share (usd per share) | $ 0.71 | $ 0.74 | $ 2.01 | $ 1.87 |
Weighted-Average Shares Outstanding | ||||
Basic (in shares) | 108,073,969 | 108,019,292 | 108,063,826 | 107,751,672 |
Diluted (in shares) | 108,283,666 | 108,143,694 | 108,253,841 | 107,947,490 |
Dividends Declared Per Share (in dollars per share) | $ 1.025 | $ 1.005 | $ 3.06 | $ 3 |
Asset management revenue | ||||
Real Estate: | ||||
Gross contract revenue | $ 17,349 | $ 17,938 | $ 51,602 | $ 53,271 |
Investment Management: | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Structuring revenue | ||||
Real Estate: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Investment Management: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Reimbursable costs from affiliates | ||||
Real Estate: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Investment Management: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Other advisory revenue | ||||
Real Estate: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Investment Management: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Dealer manager fees | ||||
Real Estate: | ||||
Gross contract revenue | 0 | 105 | 0 | 4,430 |
Investment Management: | ||||
Gross contract revenue | 0 | 105 | 0 | 4,430 |
Real Estate | ||||
Real Estate: | ||||
Lease revenues | 167,088 | 161,511 | 492,935 | 475,547 |
Reimbursable tenant costs | 5,979 | 5,397 | 17,931 | 15,940 |
Lease termination income and other | 1,981 | 1,227 | 3,603 | 4,234 |
Investment Management: | ||||
Revenues | 179,330 | 176,584 | 530,834 | 519,373 |
Operating Expenses | ||||
Depreciation and amortization | 66,837 | 62,970 | 195,131 | 186,481 |
General and administrative | 11,349 | 11,234 | 34,013 | 27,311 |
Reimbursable tenant and affiliate costs | 5,979 | 5,397 | 17,931 | 15,940 |
Property expenses, excluding reimbursable tenant costs | 7,953 | 10,556 | 26,760 | 31,196 |
Stock-based compensation expense | 1,380 | 1,880 | 7,676 | 4,733 |
Merger and other expenses | 1,673 | 65 | 4,328 | 1,138 |
Impairment charges | 0 | 0 | 4,790 | 0 |
Total operating expenses | 95,171 | 92,102 | 290,629 | 266,799 |
Other Income and Expenses | ||||
Interest expense | (41,740) | (41,182) | (121,125) | (125,374) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 4,699 | 3,740 | 11,586 | 9,533 |
Other gains and (losses) | 8,197 | (4,918) | 14,940 | (6,249) |
Total other income and expenses | (28,844) | (42,360) | (94,599) | (122,090) |
Income before income taxes and gain on sale of real estate | 55,315 | 42,122 | 145,606 | 130,484 |
Provision for income taxes | (424) | (1,511) | 1,792 | (6,696) |
Income before gain on sale of real estate | 54,891 | 40,611 | 147,398 | 123,788 |
Gain on sale of real estate, net of tax | 343 | 19,257 | 18,987 | 22,732 |
Net Income | 55,234 | 59,868 | 166,385 | 146,520 |
Net income attributable to noncontrolling interests | (4,225) | (3,376) | (10,760) | (8,530) |
Net Income Attributable to W. P. Carey | 51,009 | 56,492 | 155,625 | 137,990 |
Real Estate | Operating property revenues | ||||
Real Estate: | ||||
Gross contract revenue | 4,282 | 8,449 | 16,365 | 23,652 |
Investment Management: | ||||
Gross contract revenue | 4,282 | 8,449 | 16,365 | 23,652 |
Investment Management | ||||
Real Estate: | ||||
Gross contract revenue | 30,054 | 34,170 | 81,503 | 131,968 |
Investment Management: | ||||
Gross contract revenue | 30,054 | 34,170 | 81,503 | 131,968 |
Operating Expenses | ||||
Depreciation and amortization | 988 | 1,070 | 2,988 | 2,838 |
General and administrative | 4,514 | 6,002 | 16,875 | 25,878 |
Reimbursable tenant and affiliate costs | 6,042 | 6,211 | 16,883 | 45,390 |
Subadvisor fees | 3,127 | 5,206 | 7,014 | 11,598 |
Stock-based compensation expense | 1,095 | 2,755 | 6,716 | 9,916 |
Restructuring and other compensation | 0 | 1,356 | 0 | 9,074 |
Dealer manager fees and expenses | 0 | 462 | 0 | 6,544 |
Total operating expenses | 15,766 | 23,062 | 50,476 | 111,238 |
Other Income and Expenses | ||||
Equity in earnings of equity method investments in the Managed Programs and real estate | 13,664 | 12,578 | 34,660 | 38,287 |
Other gains and (losses) | 678 | 349 | 1,758 | 1,280 |
Total other income and expenses | 14,342 | 12,927 | 36,418 | 39,567 |
Income before income taxes and gain on sale of real estate | 28,630 | 24,035 | 67,445 | 60,297 |
Provision for income taxes | (2,291) | (249) | (4,767) | 3,793 |
Net Income Attributable to W. P. Carey | 26,339 | 23,786 | 62,678 | 64,090 |
Investment Management | Asset management revenue | ||||
Real Estate: | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Investment Management: | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Investment Management | Structuring revenue | ||||
Real Estate: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Investment Management: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Investment Management | Reimbursable costs from affiliates | ||||
Real Estate: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Investment Management: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Investment Management | Other advisory revenue | ||||
Real Estate: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Investment Management: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Investment Management | Dealer manager fees | ||||
Real Estate: | ||||
Gross contract revenue | 0 | 105 | 0 | 4,430 |
Investment Management: | ||||
Gross contract revenue | $ 0 | $ 105 | $ 0 | $ 4,430 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 81,573 | $ 83,654 | $ 229,063 | $ 210,610 |
Other Comprehensive (Loss) Income | ||||
Foreign currency translation adjustments | (8,102) | 28,979 | (29,401) | 71,686 |
Realized and unrealized gain (loss) on derivative instruments | 772 | (10,270) | 6,453 | (32,574) |
Change in unrealized (loss) gain on investments | (269) | 66 | 101 | (260) |
Net current period other comprehensive income | (7,599) | 18,775 | (22,847) | 38,852 |
Comprehensive Income | 73,974 | 102,429 | 206,216 | 249,462 |
Amounts Attributable to Noncontrolling Interests | ||||
Net income | (4,225) | (3,376) | (10,760) | (8,530) |
Foreign currency translation adjustments | 945 | (4,716) | 4,797 | (13,961) |
Realized and unrealized loss on derivative instruments | 1 | 8 | 6 | 13 |
Comprehensive income attributable to noncontrolling interests | (3,279) | (8,084) | (5,957) | (22,478) |
Comprehensive Income Attributable to W. P. Carey | $ 70,695 | $ 94,345 | $ 200,259 | $ 226,984 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - USD ($) $ in Thousands | Total | Total W.P. Carey Stockholders | $0.001 Par Value Common Stock | Additional Paid-in Capital | Distributions in Excess of Accumulated Earnings | Deferred Compensation Obligation | Accumulated Other Comprehensive Loss | Noncontrolling interests |
Beginning equity balance at Dec. 31, 2016 | $ 3,425,140 | $ 3,301,667 | $ 106 | $ 4,399,961 | $ (894,137) | $ 50,222 | $ (254,485) | $ 123,473 |
Beginning equity balance, shares at Dec. 31, 2016 | 106,294,162 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under “at-the-market” offering, net, value | 22,857 | 22,857 | $ 1 | 22,856 | ||||
Shares issued under “at-the-market” offering, net, shares | 345,253 | |||||||
Acquisition of noncontrolling interest | 0 | (1,845) | (1,845) | 1,845 | ||||
Shares issued upon delivery of vested restricted share awards, value | (9,678) | (9,678) | $ 0 | (9,678) | ||||
Shares issued upon delivery of vested restricted share awards, shares | 219,540 | |||||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, value | (1,595) | (1,595) | $ 0 | (1,595) | ||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, shares | 38,560 | |||||||
Delivery of deferred vested shares, net | 0 | 0 | 3,734 | (3,734) | ||||
Amortization of stock-based compensation expense | 14,649 | 14,649 | 14,649 | |||||
Contributions from noncontrolling interests | 90,487 | 90,487 | ||||||
Distributions to noncontrolling interests | (16,910) | (16,910) | ||||||
Dividends declared | (324,463) | (324,463) | 1,158 | (325,844) | 223 | |||
Net income | 210,610 | 202,080 | 202,080 | 8,530 | ||||
Other comprehensive (loss) income: | ||||||||
Foreign currency translation adjustments | 71,686 | 57,725 | 57,725 | 13,961 | ||||
Realized and unrealized gain on derivative instruments | (32,574) | (32,561) | (32,561) | (13) | ||||
Change in unrealized gain (loss) on investments | (260) | (260) | (260) | |||||
Ending equity balance at Sep. 30, 2017 | 3,449,949 | 3,228,576 | $ 107 | 4,429,240 | (1,017,901) | 46,711 | (229,581) | 221,373 |
Ending equity balance, shares at Sep. 30, 2017 | 106,897,515 | |||||||
Beginning equity balance at Jun. 30, 2017 | (243,648) | |||||||
Ending equity balance at Sep. 30, 2017 | 3,449,949 | 3,228,576 | $ 107 | 4,429,240 | (1,017,901) | 46,711 | (229,581) | 221,373 |
Ending equity balance, shares at Sep. 30, 2017 | 106,897,515 | |||||||
Beginning equity balance at Dec. 31, 2017 | $ 3,411,385 | 3,192,261 | $ 107 | 4,433,573 | (1,052,064) | 46,656 | (236,011) | 219,124 |
Beginning equity balance, shares at Dec. 31, 2017 | 106,922,616 | 106,922,616 | ||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards, value | $ (13,501) | (13,501) | $ 0 | (13,501) | ||||
Shares issued upon delivery of vested restricted share awards, shares | 289,707 | |||||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, value | 125 | 125 | $ 0 | 125 | ||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, shares | 2,071 | |||||||
Delivery of deferred vested shares, net | 0 | 10,497 | (10,497) | |||||
Amortization of stock-based compensation expense | 14,392 | 14,392 | 14,392 | |||||
Contributions from noncontrolling interests | 71 | 71 | ||||||
Distributions to noncontrolling interests | (15,166) | (15,166) | ||||||
Redemption value adjustment | (335) | (335) | (335) | |||||
Dividends declared | (331,478) | (331,478) | 675 | (332,153) | ||||
Net income | 229,063 | 218,303 | 218,303 | 10,760 | ||||
Other comprehensive (loss) income: | ||||||||
Foreign currency translation adjustments | (29,401) | (24,604) | (24,604) | (4,797) | ||||
Realized and unrealized gain on derivative instruments | 6,453 | 6,459 | 6,459 | (6) | ||||
Change in unrealized gain (loss) on investments | 101 | 101 | 101 | |||||
Ending equity balance at Sep. 30, 2018 | $ 3,271,709 | 3,061,723 | $ 107 | 4,445,426 | (1,165,914) | 36,159 | (254,055) | 209,986 |
Ending equity balance, shares at Sep. 30, 2018 | 107,214,394 | 107,214,394 | ||||||
Beginning equity balance at Jun. 30, 2018 | (247,402) | |||||||
Ending equity balance at Sep. 30, 2018 | $ 3,271,709 | $ 3,061,723 | $ 107 | $ 4,445,426 | $ (1,165,914) | $ 36,159 | $ (254,055) | $ 209,986 |
Ending equity balance, shares at Sep. 30, 2018 | 107,214,394 | 107,214,394 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (in dollars per share) | $ 1.025 | $ 1.005 | $ 3.06 | $ 3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows — Operating Activities | ||
Net income | $ 229,063 | $ 210,610 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 201,983 | 195,298 |
Distributions of earnings from equity method investments | 47,173 | 49,365 |
Equity in earnings of equity method investments in the Managed Programs and real estate | (46,246) | (47,820) |
Investment Management revenue received in shares of Managed REITs and other | (40,049) | (53,170) |
Amortization of rent-related intangibles and deferred rental revenue | 36,405 | 37,210 |
Gain on sale of real estate | (18,987) | (22,732) |
Stock-based compensation expense | 14,392 | 14,649 |
Straight-line rent adjustments | (12,142) | (13,511) |
Realized and unrealized (gains) losses on foreign currency transactions, derivatives, and other | (9,293) | 15,223 |
Deferred income taxes | (5,123) | (8,167) |
Impairment charges | 4,790 | 0 |
Changes in assets and liabilities: | ||
Net changes in other operating assets and liabilities | (35,173) | (2,548) |
Deferred structuring revenue received | 7,834 | 15,256 |
Increase in deferred structuring revenue receivable | (4,868) | (3,697) |
Net Cash Provided by Operating Activities | 369,759 | 385,966 |
Cash Flows — Investing Activities | ||
Purchases of real estate | (530,114) | (6,000) |
Proceeds from sales of real estate | 95,130 | 102,503 |
Funding for real estate construction, redevelopments, and other capital expenditures on real estate | (64,010) | (47,560) |
Proceeds from repayment of short-term loans to affiliates | 37,000 | 229,696 |
Return of capital from equity method investments | 12,129 | 6,482 |
Funding of short-term loans to affiliates | (10,000) | (123,492) |
Capital contributions to equity method investments | (715) | (1,291) |
Other investing activities, net | (576) | 5,728 |
Capital expenditures on corporate assets | (388) | (274) |
Net Cash (Used in) Provided by Investing Activities | (461,544) | 165,792 |
Cash Flows — Financing Activities | ||
Proceeds from Senior Unsecured Credit Facility | 982,538 | 1,189,591 |
Repayments of Senior Unsecured Credit Facility | (904,868) | (1,558,091) |
Proceeds from issuance of Senior Unsecured Notes | 616,355 | 530,456 |
Dividends paid | (329,552) | (322,389) |
Prepayments of mortgage principal | (164,908) | (159,204) |
Scheduled payments of mortgage principal | (59,048) | (303,538) |
Distributions paid to noncontrolling interests | (15,166) | (16,910) |
Payments for withholding taxes upon delivery of equity-based awards and exercises of stock options | (13,840) | (11,423) |
Payment of financing costs | (4,286) | (12,672) |
Other financing activities, net | (3,291) | (1,451) |
Proceeds from mortgage financing | 857 | 969 |
Contributions from noncontrolling interests | 71 | 90,487 |
Proceeds from shares issued under “at-the-market” offering, net of selling costs | 0 | 22,833 |
Net Cash Provided by (Used in) Financing Activities | 104,862 | (551,342) |
Change in Cash and Cash Equivalents and Restricted Cash During the Period | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (7,953) | 7,997 |
Net increase in cash and cash equivalents and restricted cash | 5,124 | 8,413 |
Cash and cash equivalents and restricted cash, beginning of period | 209,676 | 210,731 |
Cash and cash equivalents and restricted cash, end of period | $ 214,800 | $ 219,144 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization W. P. Carey Inc. is a REIT that, together with its consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property. Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.” On June 17, 2018, we, Corporate Property Associates 17 – Global Incorporated, or CPA:17 – Global, a publicly owned, non-listed REIT advised by us, and certain of our subsidiaries entered into an agreement and plan of merger, or Merger Agreement, pursuant to which CPA:17 – Global would merge with and into one of our subsidiaries in exchange for shares of our common stock, or the CPA:17 Merger, subject to certain conditions, including approvals of our stockholders and the stockholders of CPA:17 – Global ( Note 3 ). The CPA:17 Merger and related transactions were approved by both sets of stockholders on October 29, 2018 and completed on October 31, 2018, as described in Note 17 . We have elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code. As a REIT, we are not generally subject to United States federal income taxation other than from our taxable REIT subsidiaries, or TRSs, as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. Through our TRSs, we also earn revenue as the advisor to certain publicly owned, non-listed REITs. We hold all of our real estate assets attributable to our Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs. At September 30, 2018 , we were the advisor to the following entities: • CPA:17 – Global and Corporate Property Associates 18 – Global Incorporated, or CPA:18 – Global, publicly owned, non-listed REITs that primarily invest in commercial real estate properties leased to companies on a triple-net lease basis; we refer to CPA:17 – Global and CPA:18 – Global together as the CPA REITs; • Carey Watermark Investors Incorporated, or CWI 1, and Carey Watermark Investors 2 Incorporated, or CWI 2, two publicly owned, non-listed REITs that invest in lodging and lodging-related properties; we refer to CWI 1 and CWI 2 together as the CWI REITs and, together with the CPA REITs, as the Managed REITs ( Note 3 ); and • Carey European Student Housing Fund I, L.P., or CESH I, a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe ( Note 3 ); we refer to the Managed REITs and CESH I collectively as the Managed Programs. In June 2017, our board of directors, or the Board, approved a plan to exit non-traded retail fundraising activities carried out by our wholly-owned broker-dealer subsidiary, Carey Financial LLC, or Carey Financial, as of June 30, 2017. As a result, we will no longer be raising capital for new or existing funds that we manage, but we do expect to continue managing our existing Managed Programs through the end of their respective life cycles ( Note 3 ). In August 2017, we resigned as the advisor to Carey Credit Income Fund (known since October 23, 2017 as Guggenheim Credit Income Fund, or GCIF), or CCIF, and by extension, its feeder funds, or the CCIF Feeder Funds, each of which is a business development company, or BDC ( Note 3 ). We refer to CCIF and the CCIF Feeder Funds collectively as the Managed BDCs. The board of trustees of CCIF approved our resignation and appointed CCIF’s subadvisor, Guggenheim Partners Investment Management, LLC, or Guggenheim, as the interim sole advisor to CCIF, effective as of September 11, 2017. The shareholders of CCIF approved Guggenheim’s appointment as sole advisor on a permanent basis on October 20, 2017. The Managed BDCs were included in the Managed Programs prior to our resignation as their advisor. We have retained our initial investment in shares of CCIF (now GCIF), which is included within Other assets, net in the consolidated financial statements ( Note 7 ). Reportable Segments Real Estate — Lease revenues and equity income ( Note 7 ) from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Northern and Western Europe, which are leased to companies on a triple-net lease basis. We also owned one hotel at September 30, 2018 , which is considered an operating property. At September 30, 2018 , our owned portfolio was comprised of our full or partial ownership interests in 913 properties, totaling approximately 89.3 million square feet, substantially all of which were net leased to 210 tenants, with a weighted-average lease term of 10.2 years and an occupancy rate of 98.7% . Investment Management — Through our TRSs, we structure and negotiate investments and debt placement transactions for the Managed Programs, for which we earn structuring revenue, and manage their portfolios of real estate investments, for which we earn asset management revenue. We also earned asset management revenue from CCIF based on the average of its gross assets at fair value through the effective date of our resignation as its advisor. We may earn disposition revenue when we negotiate and structure the sale of properties on behalf of the Managed REITs, and we may also earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing liquidity events for the Managed REITs’ stockholders. In addition, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed Programs ( Note 7 ) and (ii) special general partner interests in the operating partnerships of the Managed REITs, through which we participate in their cash flows ( Note 3 ), in our Investment Management segment. At September 30, 2018 , the CPA REITs collectively owned all or a portion of 461 properties (including certain properties in which we have an ownership interest), totaling approximately 53.7 million square feet, substantially all of which were net leased to 204 tenants, with an occupancy rate of approximately 97.6% . The Managed Programs also had interests in 172 operating properties, totaling approximately 19.7 million square feet in the aggregate. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2017 , which are included in the 2017 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries and our tenancy-in-common interest as described below. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At both September 30, 2018 and December 31, 2017 , we considered 28 entities to be VIEs, 21 of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 952,534 $ 916,001 Net investments in direct financing leases 38,847 40,133 In-place lease and other intangible assets 235,578 268,863 Above-market rent intangible assets 92,226 103,081 Accumulated depreciation and amortization (253,067 ) (251,979 ) Total assets 1,245,053 1,118,727 Non-recourse mortgages, net $ 113,901 $ 128,230 Total liabilities 208,206 201,186 At both September 30, 2018 and December 31, 2017 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments, which we account for under the equity method of accounting, and one unconsolidated entity, which we accounted for at fair value as of September 30, 2018 and under the cost method of accounting as of December 31, 2017 ( Note 7 ), and is included within our Investment Management segment. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities. As of September 30, 2018 and December 31, 2017 , the net carrying amount of our investments in these entities was $150.3 million and $152.7 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. At September 30, 2018 , we had an investment in a tenancy-in-common interest in various underlying international properties. Consolidation of this investment is not required as such interest does not qualify as a VIE and does not meet the control requirement for consolidation. Accordingly, we account for this investment using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of this investment. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments, nor do we have any legal obligation to fund operating deficits. At September 30, 2018 , none of our equity investments had carrying values below zero. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Restricted Cash — In connection with our adoption of Accounting Standards Update, or ASU, 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , as described below, we revised our consolidated statements of cash flows to include restricted cash when reconciling the beginning-of-period and end-of-period cash amounts shown on the statement of cash flows. As a result, we retrospectively revised prior periods presented to conform to the current period presentation. Restricted cash primarily consists of security deposits and amounts required to be reserved pursuant to lender agreements for debt service, capital improvements, and real estate taxes. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 Cash and cash equivalents $ 176,612 $ 162,312 Restricted cash (a) 38,188 47,364 Total cash and cash equivalents and restricted cash $ 214,800 $ 209,676 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. Recent Accounting Pronouncements Pronouncements Adopted as of September 30, 2018 In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will primarily apply to revenues generated from our operating properties and our Investment Management business. We adopted this guidance for our interim and annual periods beginning January 1, 2018 using the modified retrospective transition method applied to any contracts not completed as of that date. There were no changes to the prior period presentations of revenue. Results of operations for reporting periods beginning January 1, 2018 are presented under Topic 606. The adoption of Topic 606 did not have a material impact on our consolidated financial statements. Revenue is recognized when, or as, control of promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. At contract inception, we assess the services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue from contracts under Accounting Standards Codification, or ASC, 606 in our Real Estate segment primarily represented operating property revenues of $4.3 million and $8.4 million for the three months ended September 30, 2018 and 2017 , respectively, and $16.4 million and $23.7 million for the nine months ended September 30, 2018 and 2017 , respectively. Operating property revenues are primarily comprised of revenues from room rentals and from food and beverage services at our hotel operating properties during those periods. We sold one of our two hotels in April 2018 ( Note 15 ). We identified a single performance obligation for each distinct service. Performance obligations are typically satisfied at a point in time, at the time of sale, or at the rendering of the service. Fees are generally determined to be fixed. Payment is typically due immediately following the delivery of the service. Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 3 . In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 requires all equity investments (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value, with changes in the fair value recognized through net income. We adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2016-01 did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. As a result, we reclassified debt extinguishment costs from net cash provided by operating activities to net cash used in financing activities on the consolidated statement of cash flows for the nine months ended September 30, 2017 . The adoption of ASU 2016-15 did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. See Restricted Cash above for additional information. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to non-customers, including partial sales. Nonfinancial assets within the scope of this Subtopic include the sale of land, buildings, and intangible assets. ASU 2017-05 further clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. We adopted this guidance for our interim and annual periods beginning January 1, 2018 and applied the modified retrospective transition method (applicable to any contracts not completed as of that date). The adoption of ASU 2017-05 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when to account for a change to the terms and conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. We adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2017-09 did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes, modifies, and adds certain fair value disclosure requirements. We adopted this guidance for our interim period beginning July 1, 2018. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements to be Adopted after September 30, 2018 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 modifies the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract, the lessee and the lessor. ASU 2016-02 provides new guidelines that change the accounting for leasing arrangements for lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely equivalent to the current model, with the distinction between operating, sales-type, and direct financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Early application is permitted for all entities. ASU 2016-02 provides two transition methods. The first transition method allows for application of the new model at the beginning of the earliest comparative period presented. Under the second transition method, comparative periods would not be restated, with any cumulative effect adjustments recognized in the opening balance of retained earnings in the period of adoption. In addition, a practical expedient was recently issued by the FASB which allows lessors to combine non-lease components with related lease components if certain conditions are met. We will adopt this guidance for our interim and annual periods beginning January 1, 2019 and expect to use the second transition method. ASU 2016-02 will require extensive quantitative and qualitative disclosures. In addition, under ASU 2016-02, lessors will only capitalize incremental direct leasing costs. We have historically not capitalized internal legal and leasing costs incurred, and thus do not expect to be impacted by the change. Lessors are also expected to record costs paid directly by a lessee on behalf of a lessor (e.g., real estate taxes and insurance costs) on a gross basis. Further, in March 2018, the FASB approved, but has not yet finalized or issued, an update to allow lessors to make a policy election to record certain costs (e.g., insurance) paid directly by the lessee net, if the uncertainty regarding these variable amounts is not expected to ultimately be resolved. ASU 2016-02 is expected to impact our consolidated financial statements as we have certain operating office and land lease arrangements for which we are the lessee and also certain lease arrangements that include common area maintenance services (non-lease components) where we are the lessor. We are evaluating the impact of ASU 2016-02 and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2019. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties CPA:17 Merger On June 17, 2018, we, CPA:17 – Global, and certain of our subsidiaries entered into the Merger Agreement, pursuant to which CPA:17 – Global would merge with and into one of our subsidiaries in exchange for shares of our common stock, subject to certain conditions, including approvals of our stockholders and the stockholders of CPA:17 – Global. The CPA:17 Merger and related transactions were approved by both sets of stockholders on October 29, 2018 and completed on October 31, 2018, as described in Note 17 . Through September 30, 2018 , we have incurred expenses related to the CPA:17 Merger totaling approximately $4.6 million (including expenses incurred in 2017), which are included in Merger and other expenses in the consolidated financial statements. Advisory Agreements and Partnership Agreements with the Managed Programs As of September 30, 2018 , we had advisory agreements with each of the Managed Programs, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. Upon completion of the CPA:17 Merger on October 31, 2018 ( Note 17 ), the advisory agreements with CPA:17 – Global were terminated. The advisory agreements also entitled us to fees for serving as the dealer manager for the offerings of the Managed Programs. However, we ceased all active non-traded retail fundraising activities as of June 30, 2017 and facilitated the orderly processing of sales for CWI 2 and CESH I until their offerings closed on July 31, 2017, at which point we no longer received dealer manager fees. In addition, we resigned as CCIF’s advisor in August 2017 and our advisory agreement with CCIF was terminated effective as of September 11, 2017, at which point we no longer earned any fees from CCIF. We currently expect to continue to manage all existing Managed Programs and earn various fees (as described below) through the end of their respective life cycles, such as the CPA:17 Merger ( Note 1 , Note 17 ). The advisory agreements with each of the remaining Managed REITs have one -year terms that are currently scheduled to expire on December 31, 2018, and may be renewed for successive periods. The advisory agreement with CESH I, which commenced on June 3, 2016, will continue until terminated pursuant to its terms. As of September 30, 2018 , we had partnership agreements with each of the Managed REITs, pursuant to which we are entitled to receive certain cash distributions. We also have a partnership agreement with CESH I, pursuant to which we received limited partnership units of CESH I equal to 2.5% of its gross offering proceeds in lieu of reimbursement of certain organizational expenses prior to the closing of CESH I’s offering on July 31, 2017. The following tables present a summary of revenue earned and/or cash received from the Managed Programs for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Asset management revenue (a) $ 17,349 $ 17,938 $ 51,602 $ 53,271 Distributions of Available Cash 13,135 12,047 32,413 34,568 Structuring revenue (a) 6,553 9,817 12,718 27,981 Reimbursable costs from affiliates (a) 6,042 6,211 16,883 45,390 Interest income on deferred acquisition fees and loans to affiliates 493 447 1,541 1,464 Other advisory revenue (a) 110 99 300 896 Dealer manager fees (a) — 105 — 4,430 $ 43,682 $ 46,664 $ 115,457 $ 168,000 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 CPA:17 – Global $ 17,794 $ 15,383 $ 48,131 $ 55,645 CPA:18 – Global 11,377 4,042 29,411 18,361 CWI 1 8,204 11,940 20,826 26,051 CWI 2 5,537 11,643 14,982 45,206 CCIF — 1,787 — 12,777 CESH I 770 1,869 2,107 9,960 $ 43,682 $ 46,664 $ 115,457 $ 168,000 __________ (a) Amounts represent revenues from contracts under ASC 606. The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): September 30, 2018 December 31, 2017 Short-term loans to affiliates, including accrued interest $ 58,350 $ 84,031 Deferred acquisition fees receivable, including accrued interest 9,782 12,345 Asset management fees receivable 6,058 356 Reimbursable costs 4,972 4,315 Accounts receivable 1,706 4,089 Current acquisition fees receivable 1,679 83 Organization and offering costs — 89 $ 82,547 $ 105,308 Performance Obligations and Significant Judgments The fees earned pursuant to our advisory agreements are considered variable consideration. For the agreements that include multiple performance obligations, including asset management and investment structuring services, revenue is allocated to each performance obligation based on estimates of the price that we would charge for each promised service if it were sold on a standalone basis. Judgment is applied in assessing whether there should be a constraint on the amount of fees recognized, such as amounts in excess of certain threshold limits with respect to the contract price or any potential clawback provisions included in certain of our arrangements. We exclude fees subject to such constraints to the extent it is probable that a significant reversal of those amounts will occur. Asset Management Revenue Under the advisory agreements with the Managed Programs, we earn asset management revenue for managing their investment portfolios. The following table presents a summary of our asset management fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA:17 – Global 0.5% – 1.75% In shares of its common stock and/or cash, at the option of CPA:17 – Global; payable in shares of its common stock through May 31, 2018; payable in cash effective as of June 1, 2018 in light of the CPA:17 Merger Rate depends on the type of investment and was based on the average market or average equity value, as applicable CPA:18 – Global 0.5% – 1.5% In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable in shares of its Class A common stock for 2018 and 2017 Rate depends on the type of investment and is based on the average market or average equity value, as applicable CWI 1 0.5% In shares of its common stock and/or cash, at our election; payable in shares of its common stock for 2018 and 2017 Rate is based on the average market value of the investment; we are required to pay 20% of the asset management revenue we receive to the subadvisor CWI 2 0.55% In shares of its Class A common stock and/or cash, at our election; payable in shares of its Class A common stock for 2018 and 2017 Rate is based on the average market value of the investment; we are required to pay 25% of the asset management revenue we receive to the subadvisor CCIF 1.75% – 2.00% In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Based on the average of gross assets at fair value; we were required to pay 50% of the asset management revenue we received to the subadvisor CESH I 1.0% In cash Based on gross assets at fair value The performance obligation for asset management services is satisfied over time as services are rendered. The time-based output method is used to measure progress over time, as this is representative of the transfer of the services. We are compensated for our services on a monthly or quarterly basis. However, these services represent a series of distinct daily services under ASU 2014-09. Accordingly, we satisfy the performance obligation and resolve the variability associated with our fees on a daily basis. We apply the practical expedient and, as a result, do not disclose variable consideration attributable to wholly or partially unsatisfied performance obligations as of the end of the reporting period. In providing asset management services, we are reimbursed for certain costs. Direct reimbursement of these costs does not represent a separate performance obligation. Payment for asset management services is typically due on the first business day following the month of the delivery of the service. Structuring Revenue Under the terms of the advisory agreements with the Managed Programs, we earn revenue for structuring and negotiating investments and related financing. We did not earn any structuring revenue from the Managed BDCs. The following table presents a summary of our structuring fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA:17 – Global 1% – 1.75%, 4.5% In cash; for non net-lease investments, 1% – 1.75% upon completion; for net-lease investments, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the net-lease investments made; also based on the total aggregate cost of the non net-lease investments or commitments made; total limited to 6% of the contract prices in aggregate CPA:18 – Global 4.5% In cash; for all investments, other than readily marketable real estate securities for which we will not receive any acquisition fees, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the investments or commitments made; total limited to 6% of the contract prices in aggregate CWI REITs 1% – 2.5% In cash upon completion; loan refinancing transactions up to 1% of the principal amount; 2.5% of the total investment cost of the properties acquired, however, fees were paid 50% in cash and 50% in shares of CWI 1’s common stock and CWI 2’s Class A common stock for a jointly owned investment structured on behalf of CWI 1 and CWI 2 in September 2017, with the approval of each CWI REIT’s board of directors Based on the total aggregate cost of the lodging investments or commitments made; we are required to pay 20% and 25% to the subadvisors of CWI 1 and CWI 2, respectively; total for each CWI REIT limited to 6% of the contract prices in aggregate CESH I 2.0% In cash upon acquisition Based on the total aggregate cost of investments or commitments made, including the acquisition, development, construction, or redevelopment of the investments The performance obligation for investment structuring services is satisfied at a point in time upon the closing of an investment acquisition, when there is an enforceable right to payment, and control (as well as the risks and rewards) has been transferred. Determining when control transfers requires management to make judgments that affect the timing of revenue recognized. Payment is due either on the day of acquisition (current portion) or deferred, as described above ( Note 5 ). We do not believe the deferral of the fees represents a significant financing component. Reimbursable Costs from Affiliates During their respective offering periods, the Managed Programs reimbursed us for certain costs that we incurred on their behalf, which consisted primarily of broker-dealer selling commissions, dealer manager fees, organization and offering costs, marketing costs, and annual distribution and shareholder servicing fees, as applicable. As a result of our exit from non-traded retail fundraising activities in June 2017, we ceased raising funds on behalf of the Managed Programs in the third quarter of 2017 and no longer incur these costs. The Managed Programs will continue to reimburse us for certain personnel and overhead costs that we incur on their behalf, a summary of which is presented in the table below: Managed Program Payable Description CPA:17 – Global and CPA:18 – Global In cash Personnel and overhead costs, excluding those related to our legal transactions group, our senior management, and our investments team, are charged to the CPA REITs based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and are capped at 1.0% and 2.0% of each CPA REIT’s pro rata lease revenues for 2018 and 2017, respectively; for the legal transactions group, costs are charged according to a fee schedule CWI 1 and CWI 2 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CCIF and CCIF Feeder Funds In cash Actual expenses incurred, excluding those related to their investment management team and senior management team, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) CESH I In cash Actual expenses incurred Distributions of Available Cash We are entitled to receive distributions of up to 10% of the Available Cash (as defined in the respective partnership agreements) from the operating partnerships of each of the Managed REITs, payable quarterly in arrears. We are required to pay 20% and 25% of such distributions to the subadvisors of CWI 1 and CWI 2, respectively. After completion of the CPA:17 Merger on October 31, 2018 ( Note 17 ), we no longer receive distributions of Available Cash from CPA:17 – Global. Back-End Fees and Interests in the Managed Programs Under our advisory agreements with certain of the Managed Programs, we may also receive compensation in connection with providing liquidity events for their stockholders. For the Managed REITs, the timing and form of such liquidity events are at the discretion of each REIT’s board of directors. Therefore, there can be no assurance as to whether or when any of these back-end fees or interests will be realized. Such back-end fees or interests may include disposition fees, interests in disposition proceeds, and distributions related to ownership of shares or limited partnership units in the Managed Programs. As a condition of the CPA:17 Merger, we waived certain back-end fees that we would have been entitled to receive from CPA:17 – Global upon its liquidation pursuant to the terms of our advisory agreement and partnership agreement with CPA:17 – Global ( Note 17 ). Other Transactions with Affiliates Loans to Affiliates From time to time, our Board has approved the making of secured and unsecured loans or lines of credit from us to certain of the Managed Programs, at our sole discretion, with each loan at a rate equal to the rate at which we are able to borrow funds under our Senior Unsecured Credit Facility ( Note 10 ), generally for the purpose of facilitating acquisitions or for working capital purposes. The following table sets forth certain information regarding our loans or lines of credit to affiliates (dollars in thousands): Interest Rate at September 30, 2018 Maturity Date at September 30, 2018 Maximum Loan Amount Authorized at September 30, 2018 Principal Outstanding Balance at (a) Managed Program September 30, 2018 December 31, 2017 CWI 1 (b) (c) LIBOR + 1.00% 6/30/2019 $ 65,802 $ 41,637 $ 68,637 CESH I (b) LIBOR + 1.00% 5/3/2019 35,000 14,461 14,461 CPA:18 – Global N/A N/A 50,000 — — CWI 2 N/A N/A 25,000 — — $ 56,098 $ 83,098 __________ (a) Amounts exclude accrued interest of $2.3 million and $0.9 million at September 30, 2018 and December 31, 2017 , respectively. (b) LIBOR means London Interbank Offered Rate. (c) Maximum loan amount authorized at December 31, 2017 to CWI 1 was $100.0 million . Other At September 30, 2018 , we owned interests ranging from 3% to 90% in jointly owned investments in real estate, including a jointly controlled tenancy-in-common interest in several properties, with the remaining interests generally held by affiliates. In addition, we owned stock of each of the Managed REITs and limited partnership units of CESH I. We consolidate certain of these investments and account for the remainder under the equity method of accounting or at fair value ( Note 7 ). |
Land, Buildings and Improvement
Land, Buildings and Improvements and Assets Held for Sale | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Land, Buildings and Improvements and Assets Held for Sale | Land, Buildings and Improvements and Assets Held for Sale Land, Buildings and Improvements — Operating Leases Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Land $ 1,130,930 $ 1,125,539 Buildings and improvements 4,596,754 4,208,907 Real estate under construction 24,430 39,772 Less: Accumulated depreciation (699,584 ) (613,543 ) $ 5,052,530 $ 4,760,675 During the nine months ended September 30, 2018 , the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro decreased by 3.5% to $1.1576 from $1.1993 . As a result of this fluctuation in foreign exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $58.6 million from December 31, 2017 to September 30, 2018 . Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $39.2 million and $36.3 million for the three months ended September 30, 2018 and 2017 , respectively, and $113.1 million and $107.5 million for the nine months ended September 30, 2018 and 2017 , respectively. Acquisitions of Real Estate During the nine months ended September 30, 2018 , we entered into the following investments, which were deemed to be real estate asset acquisitions, at a total cost of $617.1 million , including land of $84.4 million , buildings of $447.0 million (including capitalized acquisition-related costs of $14.3 million ), net lease intangibles of $90.6 million , and net other liabilities assumed of $4.9 million : • an investment of $6.1 million for a warehouse facility in Sellersburg, Indiana, on February 21, 2018; • an investment of $79.1 million for one warehouse facility in Waukesha, Wisconsin, and two retail facilities in Appleton and Madison, Wisconsin, on March 15, 2018; • an investment of $85.5 million for a manufacturing facility in Bessemer, Alabama, on June 5, 2018; the property was acquired as part of a nonmonetary transaction in exchange for 23 manufacturing facilities in various locations in the United States and Canada leased to the same tenant; this swap was recorded based on the fair value of the property acquired and was a non-cash investing activity ( Note 15 ); • an investment of $186.6 million for 14 logistics facilities and one office building in various locations in Denmark on June 28, 2018. In addition, we recorded an estimated deferred tax liability of $33.2 million , with a corresponding increase to the asset value, since we assumed the tax basis of the acquired portfolio; • an investment of $177.8 million for 36 retail facilities in various locations in the Netherlands on July 13, 2018; • an investment of $9.1 million for a manufacturing facility in Oostburg, Wisconsin, on July 17, 2018; • an investment of $22.9 million for an office/warehouse facility in Kampen, the Netherlands, on July 19, 2018; and • an investment of $49.9 million for a logistics facility in Azambuja, Portugal, on September 28, 2018. In addition, we recorded an estimated deferred tax liability of $10.5 million , with a corresponding increase to the asset value, since we assumed the tax basis of the acquired property. The acquired net lease intangibles are comprised of (i) in-place lease intangible assets totaling $80.9 million , which have a weighted-average expected life of 19.5 years , (ii) above-market rent intangible assets totaling $5.7 million , which have a weighted-average expected life of 14.2 years , (iii) indefinite-lived below-market ground lease intangible assets totaling $5.5 million , and (iv) below-market rent intangible liabilities totaling $1.6 million , which have a weighted-average expected life of 10.2 years . Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable. Real Estate Under Construction During the nine months ended September 30, 2018 , we capitalized real estate under construction totaling $46.8 million . The number of construction projects in progress with balances included in real estate under construction was three and five as of September 30, 2018 and December 31, 2017 , respectively. Aggregate unfunded commitments totaled approximately $119.7 million and $147.9 million as of September 30, 2018 and December 31, 2017 , respectively. During the nine months ended September 30, 2018 , we completed the following construction projects, at a total cost of $74.8 million , of which $29.8 million was capitalized during 2017: • an expansion project at an education facility in Houston, Texas, in January 2018 at a cost totaling $21.1 million , including capitalized interest; • a build-to-suit project for an industrial facility in Zawiercie, Poland, in April 2018 at a cost totaling $11.4 million , including capitalized interest; • a renovation project at two industrial facilities in Albemarle and Old Fort, North Carolina, in April 2018 at a cost totaling $2.2 million (this investment is included within Net investments in direct financing leases in the consolidated balance sheets); • a renovation project at an industrial facility in Chicago, Illinois, in June 2018 at a cost totaling $3.5 million ; • an expansion project at an education facility in Windermere, Florida, in August 2018 at a cost totaling $15.1 million , including capitalized interest; • a renovation project at a retail facility in Kennesaw, Georgia, in August 2018 at a cost totaling $5.5 million ; and • a build-to-suit project for an industrial facility in Radomsko, Poland, in August 2018 at a cost totaling $16.0 million , including capitalized interest. During the nine months ended September 30, 2018 , we committed to fund an aggregate of $19.9 million (based on the exchange rate of the euro at September 30, 2018 ) for an expansion project for an existing tenant at a warehouse facility in Rotterdam, the Netherlands. We currently expect to complete the project in the third quarter of 2019. Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable. Dispositions of Properties During the nine months ended September 30, 2018 , we sold eight properties and completed a nonmonetary transaction, which included the disposition of 23 properties in exchange for the acquisition of one property (as described in Acquisitions of Real Estate above), all of which were classified as Land, buildings and improvements subject to operating leases. As a result, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $102.6 million from December 31, 2017 to September 30, 2018 . Future Dispositions of Real Estate As of September 30, 2018 , one of our tenants had exercised its option to repurchase the property it is leasing for $8.0 million , but there can be no assurance that such repurchase will be completed. At September 30, 2018 , this property had an aggregate asset carrying value of $6.0 million . In addition, as of September 30, 2018 , one of our tenants had exercised its option to repurchase the three properties it is leasing for a price to be determined at a future date, but there can be no assurance that such repurchase will be completed. At September 30, 2018 , these properties had an aggregate asset carrying value of $14.6 million . Land, Buildings and Improvements — Operating Properties At September 30, 2018 and December 31, 2017 , Land, buildings and improvements attributable to operating properties consisted of our investments in one hotel and two hotels, respectively. In April 2018, we sold one hotel, and as a result, the carrying value of our Land, buildings and improvements attributable to operating properties decreased by $33.2 million from December 31, 2017 to September 30, 2018 ( Note 15 ). Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands): September 30, 2018 December 31, 2017 Land $ 3,874 $ 6,041 Buildings and improvements 38,506 77,006 Less: Accumulated depreciation (8,039 ) (16,419 ) $ 34,341 $ 66,628 Depreciation expense on our buildings and improvements attributable to operating properties was $0.5 million and $1.1 million for the three months ended September 30, 2018 and 2017 , respectively, and $2.0 million and $3.2 million for the nine months ended September 30, 2018 and 2017 , respectively. Assets Held for Sale, Net Below is a summary of our properties held for sale (in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 74,628 $ — In-place lease and other intangible assets 51,009 — Above-market rent intangible assets 8,570 — Accumulated depreciation and amortization (25,477 ) — Assets held for sale, net $ 108,730 $ — At September 30, 2018 , we had nine properties leased to the same tenant classified as Assets held for sale, net with an aggregate carrying value of $108.7 million . |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in direct financing leases, note receivable, and deferred acquisition fees. Operating leases are not included in finance receivables as such amounts are not recognized as assets in the consolidated financial statements. Net Investments in Direct Financing Leases Interest income from direct financing leases, which was included in Lease revenues in the consolidated financial statements, was $16.7 million and $16.8 million for the three months ended September 30, 2018 and 2017 , respectively, and $50.7 million and $49.3 million for the nine months ended September 30, 2018 and 2017 , respectively. During the nine months ended September 30, 2018 , the U.S. dollar strengthened against the euro, resulting in a $13.6 million decrease in the carrying value of Net investments in direct financing leases from December 31, 2017 to September 30, 2018 . During the nine months ended September 30, 2018 , we sold a property accounted for as a direct financing lease that had a net carrying value of $5.1 million . Note Receivable At September 30, 2018 and December 31, 2017 , we had a note receivable with an outstanding balance of $9.7 million and $10.0 million , respectively, representing the expected future payments under a sales type lease, which was included in Other assets, net in the consolidated financial statements. Earnings from our note receivable are included in Lease termination income and other in the consolidated financial statements. Deferred Acquisition Fees Receivable As described in Note 3 , we earn revenue in connection with structuring and negotiating investments and related mortgage financing for the CPA REITs. A portion of this revenue is due in equal annual installments over three years . Unpaid deferred installments, including accrued interest, from the CPA REITs were included in Due from affiliates in the consolidated financial statements. Credit Quality of Finance Receivables We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both September 30, 2018 and December 31, 2017 , none of the balances of our finance receivables were past due. There were no material modifications of finance receivables during the nine months ended September 30, 2018 . We evaluate the credit quality of our finance receivables utilizing an internal five -point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly. We believe the credit quality of our deferred acquisition fees receivable falls under category one , as the CPA REITs are expected to have the available cash to make such payments. A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 1 - 3 26 24 $ 628,744 $ 608,101 4 6 8 83,058 123,477 5 — — — — $ 711,802 $ 731,578 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from 3 years to 40 years . In addition, we have several ground lease intangibles that are being amortized over periods of up to 99 years . In-place lease and below-market ground lease (as lessee) intangibles, at cost are included in In-place lease and other intangible assets in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease, below-market ground lease (as lessee), and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent, above-market ground lease (as lessee), and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. Goodwill within our Real Estate segment decreased by $2.3 million during the nine months ended September 30, 2018 due to foreign currency translation adjustments, from $580.4 million as of December 31, 2017 to $578.1 million as of September 30, 2018 . Goodwill within our Investment Management segment was $63.6 million as of September 30, 2018 , unchanged from December 31, 2017 . Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 18,814 $ (9,972 ) $ 8,842 $ 18,649 $ (7,862 ) $ 10,787 Trade name 3,975 (997 ) 2,978 3,975 (401 ) 3,574 22,789 (10,969 ) 11,820 22,624 (8,263 ) 14,361 Lease Intangibles: In-place lease 1,175,176 (460,774 ) 714,402 1,194,055 (421,686 ) 772,369 Above-market rent 626,390 (314,487 ) 311,903 640,480 (276,110 ) 364,370 Below-market ground lease 18,238 (2,172 ) 16,066 18,936 (1,855 ) 17,081 1,819,804 (777,433 ) 1,042,371 1,853,471 (699,651 ) 1,153,820 Indefinite-Lived Goodwill and Intangible Assets Goodwill 641,734 — 641,734 643,960 — 643,960 Below-market ground lease 6,371 — 6,371 985 — 985 648,105 — 648,105 644,945 — 644,945 Total intangible assets $ 2,490,698 $ (788,402 ) $ 1,702,296 $ 2,521,040 $ (707,914 ) $ 1,813,126 Finite-Lived Intangible Liabilities Below-market rent $ (133,547 ) $ 54,015 $ (79,532 ) $ (135,704 ) $ 48,657 $ (87,047 ) Above-market ground lease (13,159 ) 3,504 (9,655 ) (13,245 ) 3,046 (10,199 ) (146,706 ) 57,519 (89,187 ) (148,949 ) 51,703 (97,246 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (163,417 ) $ 57,519 $ (105,898 ) $ (165,660 ) $ 51,703 $ (113,957 ) Net amortization of intangibles, including the effect of foreign currency translation, was $40.5 million and $38.4 million for the three months ended September 30, 2018 and 2017 , respectively, and $118.2 million and $114.1 million for the nine months ended September 30, 2018 and 2017 , respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues; amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization; and amortization of above-market ground lease and below-market ground lease intangibles is included in Property expenses, excluding reimbursable tenant costs. |
Equity Investments in the Manag
Equity Investments in the Managed Programs and Real Estate | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in the Managed Programs and Real Estate | Equity Investments in the Managed Programs and Real Estate We own interests in certain unconsolidated real estate investments with the Managed Programs and also own interests in the Managed Programs. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences) or at fair value by electing the equity method fair value option available under GAAP. We classify distributions received from equity method investments using the cumulative earnings approach. Distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities. The following table presents Equity in earnings of equity method investments in the Managed Programs and real estate, which represents our proportionate share of the income or losses of these investments, as well as certain adjustments related to amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Distributions of Available Cash ( Note 3 ) $ 13,135 $ 12,047 $ 32,413 $ 34,568 Proportionate share of equity in earnings of equity investments in the Managed Programs 1,136 886 4,166 4,688 Amortization of basis differences on equity method investments in the Managed Programs (607 ) (355 ) (1,919 ) (969 ) Total equity in earnings of equity method investments in the Managed Programs 13,664 12,578 34,660 38,287 Equity in earnings of equity method investments in real estate 5,264 4,244 13,251 11,404 Amortization of basis differences on equity method investments in real estate (565 ) (504 ) (1,665 ) (1,871 ) Total equity in earnings of equity method investments in real estate 4,699 3,740 11,586 9,533 Equity in earnings of equity method investments in the Managed Programs and real estate $ 18,363 $ 16,318 $ 46,246 $ 47,820 Managed Programs We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor, we do not exert control over, but we do have the ability to exercise significant influence over, the Managed Programs. Operating results of the Managed Programs are included in the Investment Management segment. The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 CPA:17 – Global (a) 4.572 % 4.186 % $ 130,145 $ 125,676 CPA:17 – Global operating partnership 0.009 % 0.009 % — — CPA:18 – Global (a) 3.228 % 2.540 % 36,810 28,433 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 (a) 2.830 % 2.119 % 36,026 26,810 CWI 1 operating partnership 0.015 % 0.015 % 186 186 CWI 2 (a) 2.554 % 1.786 % 23,219 16,495 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CESH I (b) 2.430 % 2.430 % 3,397 3,299 $ 230,292 $ 201,408 __________ (a) During 2018, we received asset management revenue from the Managed REITs in shares of their common stock, which increased our ownership percentage in each of the Managed REITs. Effective as of June 1, 2018, we began receiving asset management revenue from CPA:17 – Global in cash in light of the CPA:17 Merger, which closed on October 31, 2018 ( Note 1 , Note 3 , Note 17 ). (b) Investment is accounted for at fair value. CPA:17 – Global — We received distributions from this investment during the nine months ended September 30, 2018 and 2017 of $7.5 million and $6.1 million , respectively. We received distributions from our investment in the CPA:17 – Global operating partnership during the nine months ended September 30, 2018 and 2017 of $18.6 million and $19.2 million , respectively ( Note 3 ). On October 31, 2018, we acquired all of the remaining interests in CPA:17 – Global and the CPA:17 – Global operating partnership in the CPA:17 Merger ( Note 17 ). CPA:18 – Global — The c arrying value of our investment in CPA:18 – Global at September 30, 2018 includes asset management fees receivable, for which 120,831 shares of CPA:18 – Global Class A common stock were issued during the fourth quarter of 2018 . We received distributions from this investment during the nine months ended September 30, 2018 and 2017 of $1.9 million and $1.2 million , respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the nine months ended September 30, 2018 and 2017 of $6.4 million and $6.1 million , respectively ( Note 3 ). CWI 1 — The c arrying value of our investment in CWI 1 at September 30, 2018 includes asset management fees receivable, for which 113,096 shares of CWI 1 common stock were issued during the fourth quarter of 2018 . We received distributions from this investment during the nine months ended September 30, 2018 and 2017 of $1.4 million and $0.8 million , respectively. We received distributions from our investment in the CWI 1 operating partnership during the nine months ended September 30, 2018 and 2017 of $3.5 million and $5.7 million , respectively ( Note 3 ). CWI 2 — The carrying value of our investment in CWI 2 at September 30, 2018 includes asset management fees receivable, for which 78,214 shares of CWI 2 Class A common stock were issued during the fourth quarter of 2018 . We received distributions from this investment during the nine months ended September 30, 2018 and 2017 of $0.8 million and $0.2 million , respectively. We received distributions from our investment in the CWI 2 operating partnership during the nine months ended September 30, 2018 and 2017 of $3.9 million and $3.5 million , respectively ( Note 3 ). CESH I — Under the limited partnership agreement we have with CESH I, we paid all organization and offering costs on behalf of CESH I, and instead of being reimbursed by CESH I for actual costs incurred, we received limited partnership units of CESH I equal to 2.5% of its gross offering proceeds ( Note 3 ). In connection with the end of active fundraising by Carey Financial on June 30, 2017, we facilitated the orderly processing of sales in the CESH I offering through July 31, 2017, which then closed its offering on that date ( Note 3 ). We have elected to account for our investment in CESH I at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH I on a one quarter lag; therefore, the balance of our equity method investment in CESH I recorded as of September 30, 2018 is based on the estimated fair value of our equity method investment in CESH I as of June 30, 2018 . We did not receive distributions from this investment during the nine months ended September 30, 2018 or 2017 . CCIF — In August 2017, we resigned as the advisor to CCIF, effective as of September 11, 2017 ( Note 1 ). As such, we reclassified our investment in CCIF (known since October 23, 2017 as GCIF) from Equity investments in the Managed Programs and real estate to Other assets, net in our consolidated balance sheets and accounted for it under the cost method, since we no longer shared decision-making responsibilities with the third-party investment partner. Following our adoption of ASU 2016-01, effective January 1, 2018 ( Note 2 ), we account for our investment in GCIF at fair value. Our investment in GCIF had a carrying value of $23.7 million and $23.3 million at September 30, 2018 and December 31, 2017 , respectively, and is included in our Investment Management segment. We received distributions from our equity method investment in CCIF during the nine months ended September 30, 2017 of $0.9 million . Following our resignation as the advisor to CCIF in the third quarter of 2017, distributions of earnings from GCIF and unrealized gains or losses recognized on GCIF are recorded within Other gains and (losses) in the consolidated financial statements. At September 30, 2018 and December 31, 2017 , the aggregate unamortized basis differences on our equity investments in the Managed Programs were $69.4 million and $55.2 million , respectively. Interests in Other Unconsolidated Real Estate Investments We own equity interests in single-tenant net-leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly owned with affiliates. We account for these investments under the equity method of accounting. Operating results of our unconsolidated real estate investments are included in the Real Estate segment. The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee Co-owner Ownership Interest September 30, 2018 December 31, 2017 The New York Times Company (a) (b) CPA:17 – Global 45% $ 68,945 $ 69,401 Frontier Spinning Mills, Inc. (a) CPA:17 – Global 40% 24,074 24,153 Beach House JV, LLC (c) Third Party N/A 15,105 15,105 ALSO Actebis GmbH (a) (d) CPA:17 – Global 30% 11,401 12,009 Jumbo Logistiek Vastgoed B.V. (a) (d) (e) CPA:17 – Global 15% 9,430 10,661 Wagon Automotive GmbH (a) (d) (f) CPA:17 – Global 33% 6,016 8,386 Wanbishi Archives Co. Ltd. (a) (g) CPA:17 – Global 3% 1,043 334 $ 136,014 $ 140,049 __________ (a) Subsequent to the CPA:17 Merger in October 2018, we consolidate these wholly owned investments ( Note 17 ). (b) I n January 2018, this tenant exercised its option to repurchase the property it is leasing for $250.0 million . There can be no assurance that such repurchase will be completed. (c) This investment is in the form of a preferred equity interest. (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (e) This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. The co-obligor is CPA:17 – Global and the amount due under the arrangement was approximately $72.5 million at September 30, 2018 . Of this amount, $10.9 million represents the amount we were liable for and is included within the carrying value of the investment at September 30, 2018 . (f) In August 2018, this investment sold one of its two properties for $7.7 million , net of selling costs (our proportionate share was $2.6 million ), and recognized a net gain on the sale of $4.6 million (our proportionate share was $1.5 million ). (g) The carrying value of this investment is affected by fluctuations in the exchange rate of the yen. In January 2018, we contributed $0.7 million to this jointly owned investment in connection with the repayment of the non-recourse mortgage loan encumbering the investment. We received aggregate distributions of $15.4 million and $12.1 million from our other unconsolidated real estate investments for the nine months ended September 30, 2018 and 2017 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Items Measured at Fair Value on a Recurring Basis The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items, we have also provided the unobservable inputs. Money Market Funds — Our money market funds, which are included in Cash and cash equivalents in the consolidated financial statements, are comprised of government securities and U.S. Treasury bills. These funds were classified as Level 1 as we used quoted prices from active markets to determine their fair values. Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of foreign currency forward contracts, foreign currency collars, interest rate swaps, interest rate caps, and stock warrants ( Note 9 ). The foreign currency forward contracts, foreign currency collars, interest rate swaps, and interest rate caps were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The stock warrants were measured at fair value using valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market. Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of foreign currency collars and interest rate swaps ( Note 9 ). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Equity Investment in CESH I — We have elected to account for our investment in CESH I, which is included in Equity investments in the Managed Programs and real estate in the consolidated financial statements, at fair value by selecting the equity method fair value option available under GAAP ( Note 7 ). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value. Equity Investment in GCIF — We account for our investment in GCIF, which is included in Other assets, net in the consolidated financial statements, at fair value ( Note 7 ). We classified this investment as Level 2 because we used a quoted price from an inactive market to determine its fair value. We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the nine months ended September 30, 2018 or 2017 . Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other gains and (losses) on our consolidated financial statements, except for gains and losses recognized on our equity investment in CESH I, which are reported within Other comprehensive (loss) income . Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): September 30, 2018 December 31, 2017 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 3,007,453 $ 3,055,120 $ 2,474,661 $ 2,588,032 Non-recourse mortgages, net (a) (b) (d) 3 959,951 957,332 1,185,477 1,196,399 Note receivable (d) 3 9,651 9,503 9,971 9,639 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $16.7 million and $14.7 million at September 30, 2018 and December 31, 2017 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.9 million and $1.0 million at September 30, 2018 and December 31, 2017 , respectively. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $12.2 million and $9.9 million at September 30, 2018 and December 31, 2017 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $1.9 million and $1.7 million at September 30, 2018 and December 31, 2017 , respectively. (c) We determined the estimated fair value of the Senior Unsecured Notes using observed market prices in an open market with limited trading volume. (d) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. We estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility ( Note 10 ) but excluding net investments in direct financing leases, had fair values that approximated their carrying values at both September 30, 2018 and December 31, 2017 . Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate held for use for which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the future undiscounted net cash flows that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. If this amount is less than the carrying value, the property’s asset group is considered to be not recoverable. We then measure the impairment charge as the excess of the carrying value of the property’s asset group over the estimated fair value of the property’s asset group, which is primarily determined using market information such as recent comparable sales, broker quotes, or third-party appraisals. If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment. We determined that the significant inputs used to value these investments fall within Level 3 for fair value reporting. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change. During the nine months ended September 30, 2018 , we recognized impairment charges totaling $4.8 million on two properties in order to reduce the carrying values of the properties to their estimated fair values, which was $3.9 million in each case. We recognized an impairment charge of $3.8 million on one of those properties due to a tenant bankruptcy and likely vacancy, and the fair value measurement for the property was determined by estimating discounted cash flows using market rent assumptions. We recognized an impairment charge of $1.0 million on the other property due to a lease expiration and resulting vacancy, and the fair value measurement for the property approximated its estimated selling price. We did not recognize any impairment charges during the three or nine months ended September 30, 2017 . |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Use of Derivative Financial Instruments | Risk Management and Use of Derivative Financial Instruments Risk Management In the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Unsecured Credit Facility and Senior Unsecured Notes ( Note 10 ). Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, as well as changes in the value of our other securities and the shares or limited partnership units we hold in the Managed Programs due to changes in interest rates or other market factors. We own investments in Europe, Canada, Australia, Mexico, and Asia and are subject to risks associated with fluctuating foreign currency exchange rates. Derivative Financial Instruments When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may be granted common stock warrants by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities. We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated, and that qualified, as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive (loss) income until the hedged item is recognized in earnings. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings. All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both September 30, 2018 and December 31, 2017 , no cash collateral had been posted nor received for any of our derivative positions. The following table sets forth certain information regarding our derivative instruments (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Foreign currency forward contracts Other assets, net $ 15,486 $ 12,737 $ — $ — Foreign currency collars Other assets, net 6,392 4,931 — — Interest rate swaps Other assets, net 1,500 523 — — Interest rate cap Other assets, net 4 20 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (3,167 ) (6,805 ) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (164 ) (1,108 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 3,886 3,685 — — Interest rate swap (a) Other assets, net — 19 — — Total derivatives $ 27,268 $ 21,915 $ (3,331 ) $ (7,913 ) __________ (a) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive (Loss) Income (Effective Portion) (a) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Foreign currency collars $ 1,267 $ (5,398 ) $ 5,117 $ (16,002 ) Foreign currency forward contracts (786 ) (4,752 ) (644 ) (16,422 ) Interest rate swaps 244 250 1,664 779 Interest rate cap (1 ) (17 ) (12 ) (26 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts 1,100 (1,171 ) 3,416 (5,347 ) Total $ 1,824 $ (11,088 ) $ 9,541 $ (37,018 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency forward contracts Other gains and (losses) $ 1,752 $ 1,454 $ 4,556 $ 5,336 Foreign currency collars Other gains and (losses) 681 735 1,255 3,154 Interest rate swaps and cap Interest expense (10 ) (286 ) (261 ) (1,024 ) Total $ 2,423 $ 1,903 $ 5,550 $ 7,466 __________ (a) Excludes net gains of less than $0.1 million and net losses of $0.4 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2018 and 2017 , respectively, and net gains of $0.3 million and net losses of $0.9 million for the nine months ended September 30, 2018 and 2017 , respectively. (b) The effective portion of the changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive (loss) income . Amounts reported in Other comprehensive (loss) income related to interest rate swaps will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive (loss) income related to foreign currency derivative contracts will be reclassified to Other gains and (losses) when the hedged foreign currency contracts are settled. As of September 30, 2018 , we estimate that an additional $0.3 million and $10.0 million will be reclassified as interest expense and other gains, respectively, during the next 12 months. The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency collars Other gains and (losses) $ 135 $ (225 ) $ 455 $ (718 ) Stock warrants Other gains and (losses) — 134 201 (201 ) Foreign currency forward contracts Other gains and (losses) — (19 ) (125 ) (19 ) Interest rate swaps Other gains and (losses) — 2 7 11 Derivatives in Cash Flow Hedging Relationships (a) Interest rate swaps Interest expense 36 153 249 455 Foreign currency collars Other gains and (losses) (3 ) (13 ) (24 ) (11 ) Foreign currency forward contracts Other gains and (losses) — (14 ) — (75 ) Total $ 168 $ 18 $ 763 $ (558 ) __________ (a) Relates to the ineffective portion of the hedging relationship. See below for information on our purposes for entering into derivative instruments. Interest Rate Swaps and Caps We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we historically attempted to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners obtained, and may in the future obtain, variable-rate, non-recourse mortgage loans and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swaps and cap that our consolidated subsidiaries had outstanding at September 30, 2018 are summarized as follows (currency in thousands): Number of Instruments Notional Amount Fair Value at (a) Interest Rate Derivatives Designated as Cash Flow Hedging Instruments Interest rate swaps 9 86,863 USD $ 1,336 Interest rate cap 1 30,050 EUR 4 $ 1,340 __________ (a) Fair value amounts are based on the exchange rate of the euro at September 30, 2018 , as applicable. Foreign Currency Forward Contracts and Collars We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling, the Danish krone, the Australian dollar, and certain other currencies. We manage foreign currency exchange rate movements by generally having our debt service obligations in the same local currencies as our rental revenues. This reduces our overall exposure to the net cash flow. However, we are subject to foreign currency exchange rate movements to the extent that there is a difference in the timing and amount of the rental obligation and the debt service. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other gains and (losses) in the consolidated financial statements. In order to hedge certain of our foreign currency net cash flow exposures, we enter into foreign currency forward contracts and collars. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. By entering into forward contracts and holding them to maturity, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency forward contracts and foreign currency collars have maturities of 77 months or less. The following table presents the foreign currency derivative contracts we had outstanding at September 30, 2018 (currency in thousands): Number of Instruments Notional Fair Value at September 30, 2018 Foreign Currency Derivatives Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 13 47,800 EUR $ 9,980 Foreign currency collars 31 39,000 GBP 4,615 Foreign currency collars 31 101,275 EUR (1,390 ) Foreign currency forward contracts 5 6,385 AUD 541 Foreign currency forward contracts 1 540 GBP 148 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 2 68,999 AUD 4,817 $ 18,711 Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of September 30, 2018 . At September 30, 2018 , our total credit exposure and the maximum exposure to any single counterparty was $21.2 million and $15.3 million , respectively. Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At September 30, 2018 , we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $3.4 million and $8.1 million at September 30, 2018 and December 31, 2017 , respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at September 30, 2018 or December 31, 2017 , we could have been required to settle our obligations under these agreements at their aggregate termination value of $3.5 million and $8.4 million , respectively. Net Investment Hedges We have had three issuances of euro-denominated senior notes, each with a principal amount of €500.0 million , which we refer to as the 2.0% Senior Notes due 2023, 2.25% Senior Notes due 2024, and 2.125% Senior Notes due 2027 ( Note 10 ). The 2.0% Senior Notes due 2023, 2.25% Senior Notes due 2024, and a portion of the 2.125% Senior Notes due 2027 are designated as, and are effective as, economic hedges of our net investments in foreign entities. Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our euro borrowings under our 2.0% Senior Notes due 2023, 2.25% Senior Notes due 2024, and a portion of our 2.125% Senior Notes due 2027 related to changes in spot rates will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $10.5 million and $(45.4) million for the three months ended September 30, 2018 and 2017 , respectively, and $55.0 million and $(116.8) million for the nine months ended September 30, 2018 and 2017 , respectively. At September 30, 2018 , we also had foreign currency forward contracts that were designated as net investment hedges, as discussed in “Derivative Financial Instruments” above. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Unsecured Credit Facility On February 22, 2017, we entered into the Third Amended and Restated Credit Facility, or the Credit Agreement, which provided for a $1.5 billion unsecured revolving credit facility, or our Unsecured Revolving Credit Facility, a €236.3 million term loan, or our Term Loan, and a $100.0 million delayed draw term loan, or our Delayed Draw Term Loan, which we refer to collectively as the Senior Unsecured Credit Facility. The Delayed Draw Term Loan allows for borrowings in U.S. dollars, euros, or British pounds sterling. We refer to our Term Loan and Delayed Draw Term Loan collectively as the Unsecured Term Loans. As of December 31, 2017, we had drawn down our Unsecured Term Loans in full. On March 7, 2018, we repaid and terminated our Unsecured Term Loans in full for €325.0 million (equivalent to $403.6 million ), using a portion of the proceeds from the issuance of the 2.125% Senior Notes due 2027, as described below. In connection with the repayments, we recognized a non-cash loss on extinguishment of debt of $1.4 million , which was included in Other gains and (losses) in the consolidated financial statements. The maturity date of the Unsecured Revolving Credit Facility is February 22, 2021. We have two options to extend the maturity date of the Unsecured Revolving Credit Facility by six months , subject to the conditions provided in the Credit Agreement. The Unsecured Revolving Credit Facility is being used for working capital needs, for acquisitions, and for other general corporate purposes. The Credit Agreement also permits (i) a sub-limit for up to $1.0 billion under the Unsecured Revolving Credit Facility to be borrowed in certain currencies other than U.S. dollars, (ii) a sub-limit for swing line loans of up to $75.0 million under the Unsecured Revolving Credit Facility, and (iii) a sub-limit for the issuance of letters of credit under the Unsecured Revolving Credit Facility in an aggregate amount not to exceed $50.0 million . The aggregate principal amount (of revolving and term loans) available under the Credit Agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.35 billion , subject to the conditions to increase provided in the Credit Agreement. At September 30, 2018 , our Unsecured Revolving Credit Facility had unused capacity of $803.6 million . We incur a facility fee of 0.20% of the total commitment on our Unsecured Revolving Credit Facility. The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Interest Rate at (a) Maturity Date at September 30, 2018 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2018 December 31, 2017 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in euros (b) EURIBOR + 1.00% 2/22/2021 $ 449,380 $ 111,775 Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 247,000 105,000 696,380 216,775 Unsecured Term Loans (c) : Term Loan — borrowing in euros (d) N/A N/A — 283,425 Delayed Draw Term Loan — borrowing in euros N/A N/A — 106,348 — 389,773 $ 696,380 $ 606,548 __________ (a) The applicable interest rate at September 30, 2018 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) EURIBOR means Euro Interbank Offered Rate. (c) On March 7, 2018, we repaid and terminated our Unsecured Term Loans in full, as described above. (d) Balance excludes unamortized discount of $1.2 million and unamortized deferred financing costs of $0.2 million at December 31, 2017 . Senior Unsecured Notes As set forth in the table below, we have senior unsecured notes outstanding with an aggregate principal balance outstanding of $3.0 billion at September 30, 2018 . We refer to these notes collectively as the Senior Unsecured Notes. On March 6, 2018 , we completed a public offering of €500.0 million of 2.125% Senior Notes due 2027, at a price of 99.324% of par value, issued by our wholly owned subsidiary, WPC Eurobond B.V., which are guaranteed by us. These 2.125% Senior Notes due 2027 have a nine -year term and are scheduled to mature on April 15, 2027 . Interest on the Senior Unsecured Notes is payable annually in arrears for our euro-denominated notes and semi-annually for U.S. dollar-denominated notes. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 30 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at September 30, 2018 (currency in millions): Original Issue Discount Effective Interest Rate Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date Principal Amount Price of Par Value Coupon Rate Maturity Date September 30, 2018 December 31, 2017 2.0% Senior Notes due 2023 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 578.8 $ 599.7 4.6% Senior Notes due 2024 3/14/2014 $ 500.0 99.639 % $ 1.8 4.645 % 4.6 % 4/1/2024 500.0 500.0 2.25% Senior Notes due 2024 1/19/2017 € 500.0 99.448 % $ 2.9 2.332 % 2.25 % 7/19/2024 578.8 599.7 4.0% Senior Notes due 2025 1/26/2015 $ 450.0 99.372 % $ 2.8 4.077 % 4.0 % 2/1/2025 450.0 450.0 4.25% Senior Notes due 2026 9/12/2016 $ 350.0 99.682 % $ 1.1 4.290 % 4.25 % 10/1/2026 350.0 350.0 2.125% Senior Notes due 2027 3/6/2018 € 500.0 99.324 % $ 4.2 2.208 % 2.125 % 4/15/2027 578.8 — $ 3,036.4 $ 2,499.4 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $16.7 million and $14.7 million , and unamortized discount totaling $12.2 million and $9.9 million , at September 30, 2018 and December 31, 2017 , respectively. Proceeds from the issuances of each of these notes were used primarily to partially pay down the amounts then outstanding under the senior unsecured credit facility that we had in place at that time and/or to repay certain non-recourse mortgage loans. In connection with the offering of the 2.125% Senior Notes due 2027 in March 2018, we incurred financing costs totaling $4.3 million during the nine months ended September 30, 2018 , which are included in Senior Unsecured Notes, net in the consolidated financial statements and are being amortized to Interest expense over the term of the 2.125% Senior Notes due 2027. On October 9, 2018, we completed a public offering of €500.0 million of 2.250% Senior Notes due 2026, at a price of 99.252% of par value, issued by our wholly owned subsidiary, WPC Eurobond B.V., which are guaranteed by us. These 2.250% Senior Notes due 2026 have a 7.5 -year term and are scheduled to mature on April 9, 2026 ( Note 17 ). Covenants The Credit Agreement and each of the Senior Unsecured Notes include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. The Credit Agreement also contains various customary affirmative and negative covenants applicable to us and our subsidiaries, subject to materiality and other qualifications, baskets, and exceptions as outlined in the Credit Agreement. We were in compliance with all of these covenants at September 30, 2018 . We may make unlimited Restricted Payments (as defined in the Credit Agreement), as long as no non-payment default or financial covenant default has occurred before, or would on a pro forma basis occur as a result of, the Restricted Payment. In addition, we may make Restricted Payments in an amount required to (i) maintain our REIT status and (ii) as a result of that status, not pay federal or state income or excise tax, as long as the loans under the Credit Agreement have not been accelerated and no bankruptcy or event of default has occurred. Obligations under the Unsecured Revolving Credit Facility may be declared immediately due and payable upon the occurrence of certain events of default as defined in the Credit Agreement, including failure to pay any principal when due and payable, failure to pay interest within five business days after becoming due, failure to comply with any covenant, representation or condition of any loan document, any change of control, cross-defaults, and certain other events as set forth in the Credit Agreement, with grace periods in some cases. Non-Recourse Mortgages At September 30, 2018 , our non-recourse mortgage notes payable bore interest at fixed annual rates ranging from 2.0% to 7.8% and variable contractual annual rates ranging from 3.3% to 6.9% , with maturity dates ranging from October 2018 to June 2027 . Repayments During the Nine Months Ended September 30, 2018 During the nine months ended September 30, 2018 , we prepaid non-recourse mortgage loans totaling $164.9 million , including $12.5 million encumbering properties that were disposed of during the nine months ended September 30, 2018 . Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable. In addition, during the nine months ended September 30, 2018 , we repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $22.6 million . The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 2.8% . Repayments During the Nine Months Ended September 30, 2017 In January 2017, we repaid two international non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $243.8 million encumbering a German investment (comprised of certain properties leased to Hellweg Die Profi-Baumärkte GmbH & Co. KG), which is jointly owned with our affiliate, CPA:17 – Global. In connection with this repayment, CPA:17 – Global contributed $90.3 million , which was accounted for as a contribution from a noncontrolling interest. Amounts are based on the exchange rate of the euro as of the date of repayment. The weighted-average interest rate for these mortgage loans on the date of repayment was 5.4% . During the nine months ended September 30, 2017 , we repaid additional non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $19.3 million . During the nine months ended September 30, 2017 , we prepaid non-recourse mortgage loans totaling $157.4 million , including $38.4 million encumbering a property that was sold in January 2017. Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of prepayment was 5.5% . Foreign Currency Exchange Rate Impact During the nine months ended September 30, 2018 , the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $73.1 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2017 to September 30, 2018 . Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2018 , each of the next four calendar years following December 31, 2018 , and thereafter through 2027 are as follows (in thousands): Years Ending December 31, Total (a) 2018 (remainder) $ 32,885 2019 91,760 2020 220,661 2021 855,589 2022 240,696 Thereafter through 2027 3,253,934 Total principal payments 4,695,525 Unamortized deferred financing costs (17,638 ) Unamortized discount, net (b) (14,103 ) Total $ 4,663,784 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at September 30, 2018 . (b) Represents the unamortized discount on the Senior Unsecured Notes of $12.2 million in aggregate and unamortized discount of $1.9 million in aggregate primarily resulting from the assumption of property-level debt in connection with business combinations completed in prior years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At September 30, 2018 , we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations. |
Restructuring and Other Compens
Restructuring and Other Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Compensation | Restructuring and Other Compensation Expenses Recorded During 2017 In June 2017, our Board approved a plan to exit all non-traded retail fundraising activities carried out by our wholly-owned broker-dealer subsidiary, Carey Financial, as of June 30, 2017 ( Note 1 ). As a result, we incurred non-recurring charges to exit our fundraising activities, consisting primarily of severance costs. During the nine months ended September 30, 2017 , we recorded $8.2 million of severance and benefits and $0.9 million of other related costs, which are all included in Restructuring and other compensation in the consolidated financial statements. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity Stock-Based Compensation We maintain several stock-based compensation plans, which are more fully described in the 2017 Annual Report. There have been no significant changes to the terms and conditions of any of our stock-based compensation plans or arrangements during the nine months ended September 30, 2018 . During the nine months ended September 30, 2018 and 2017 , we recorded stock-based compensation expense of $14.4 million and $14.6 million , respectively. Approximately $4.2 million of the stock-based compensation expense recorded during the nine months ended September 30, 2018 was attributable to the modification of restricted share units, or RSUs, and performance share units, or PSUs, in connection with the retirement of our former chief executive officer in February 2018. Restricted and Conditional Awards Nonvested restricted share awards, or RSAs, RSUs, and PSUs at September 30, 2018 and changes during the nine months ended September 30, 2018 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2018 324,339 $ 61.43 281,299 $ 74.57 Granted (a) 137,519 64.50 75,864 75.81 Vested (b) (179,412 ) 62.22 (66,632 ) 76.96 Forfeited (3,079 ) 61.71 (3,098 ) 76.49 Adjustment (c) — — 40,308 75.11 Nonvested at September 30, 2018 (d) 279,367 $ 62.43 327,741 $ 78.99 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three -year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 2018 , we used a risk-free interest rate of 2.2% , an expected volatility rate of 17.2% , and assumed a dividend yield of zero . (b) The grant date fair value of shares vested during the nine months ended September 30, 2018 was $16.3 million . Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 2018 and December 31, 2017 , we had an obligation to issue 873,671 and 1,140,632 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $36.2 million and $46.7 million , respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three -year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at September 30, 2018 to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2018 , total unrecognized compensation expense related to these awards was approximately $21.4 million , with an aggregate weighted-average remaining term of 1.9 years . Earnings Per Share Under current authoritative guidance for determining earnings per share, all nonvested share-based payment awards that contain non-forfeitable rights to dividends are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of our nonvested RSUs and RSAs contain rights to receive non-forfeitable dividend equivalents or dividends, respectively, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the nonvested participating RSUs and RSAs from the numerator and such nonvested shares in the denominator. The following table summarizes basic and diluted earnings (in thousands, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income attributable to W. P. Carey $ 77,348 $ 80,278 $ 218,303 $ 202,080 Net income attributable to nonvested participating RSUs and RSAs (99 ) (239 ) (279 ) (600 ) Net income — basic and diluted $ 77,249 $ 80,039 $ 218,024 $ 201,480 Weighted-average shares outstanding — basic 108,073,969 108,019,292 108,063,826 107,751,672 Effect of dilutive securities 209,697 124,402 190,015 195,818 Weighted-average shares outstanding — diluted 108,283,666 108,143,694 108,253,841 107,947,490 For the three and nine months ended September 30, 2018 and 2017 , there were no potentially dilutive securities excluded from the computation of diluted earnings per share. At-The-Market Equity Offering Program On March 1, 2017, we filed a prospectus supplement with the SEC pursuant to which we may offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $400.0 million , through a continuous “at-the-market,” or ATM, offering program with a consortium of banks acting as sales agents. During both the three and nine months ended September 30, 2018 , we did not issue any shares of our common stock under our ATM program. During the three and nine months ended September 30, 2017 , we issued 15,500 and 345,253 shares, respectively, of our common stock under our ATM program at a weighted-average price of $67.05 and $67.78 per share, respectively, for net proceeds of $0.9 million and $22.8 million , respectively. As of September 30, 2018 , $376.6 million remained available for issuance under our ATM program. Noncontrolling Interests Acquisition of Noncontrolling Interest On May 24, 2017, we acquired the remaining 25% interest in an international jointly owned investment (which we already consolidated) from the noncontrolling interest holders for €2 , bringing our ownership interest to 100% . No gain or loss was recognized on the transaction. We recorded an adjustment of approximately $1.8 million to Additional paid-in capital in our consolidated statement of equity for the nine months ended September 30, 2017 related to the difference between the consideration transferred and the carrying value of the noncontrolling interest related to this investment. The property owned by the investment was sold on May 26, 2017 and we recognized a gain on sale of less than $0.1 million . Redeemable Noncontrolling Interest We accounted for the noncontrolling interest in our subsidiary, W. P. Carey International, LLC, or WPCI, held by a third party as a redeemable noncontrolling interest, because, pursuant to a put option held by the third party, we had an obligation to redeem the interest at fair value, subject to certain conditions. This obligation was required to be settled in shares of our common stock. On October 1, 2013, we received a notice from the holder of the noncontrolling interest in WPCI regarding the exercise of the put option, pursuant to which we were required to purchase the third party’s 7.7% interest in WPCI. Pursuant to the terms of the related put agreement, the value of that interest was determined based on a third-party valuation as of October 31, 2013, which is the end of the month that the put option was exercised. In March 2016, we issued 217,011 shares of our common stock to the holder of the redeemable noncontrolling interest, which had a value of $13.4 million at the date of issuance, pursuant to a formula set forth in the put agreement. However, the third party did not formally transfer his interests in WPCI to us pursuant to the put agreement at that time because of a dispute regarding any amounts that might still be owed to him. In September 2018, we negotiated a settlement of that dispute, and as a result, we recorded an adjustment of $0.3 million to Additional paid-in capital in our consolidated statement of equity for the nine months ended September 30, 2018 to reflect the redemption value of the third party’s interest. As part of the settlement, the third party acknowledged that all of his interests in WPCI have been transferred to us and all disputes between the parties were resolved in October 2018. The carrying value of our redeemable noncontrolling interest was $1.3 million and $1.0 million as of September 30, 2018 and December 31, 2017 , respectively. Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended September 30, 2018 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 14,858 $ (262,469 ) $ 209 $ (247,402 ) Other comprehensive loss before reclassifications 3,195 (8,102 ) (269 ) (5,176 ) Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (2,433 ) — — (2,433 ) Interest expense 10 — — 10 Total (2,423 ) — — (2,423 ) Net current period other comprehensive loss 772 (8,102 ) (269 ) (7,599 ) Net current period other comprehensive loss attributable to noncontrolling interests 1 945 — 946 Ending balance $ 15,631 $ (269,626 ) $ (60 ) $ (254,055 ) Three Months Ended September 30, 2017 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 24,636 $ (267,868 ) $ (416 ) $ (243,648 ) Other comprehensive income before reclassifications (8,367 ) 25,417 66 17,116 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Other gains and (losses) (2,189 ) — — (2,189 ) Interest expense 286 — — 286 Total (1,903 ) 3,562 — 1,659 Net current period other comprehensive income (10,270 ) 28,979 66 18,775 Net current period other comprehensive gain attributable to noncontrolling interests 8 (4,716 ) — (4,708 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Nine Months Ended September 30, 2018 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 9,172 $ (245,022 ) $ (161 ) $ (236,011 ) Other comprehensive loss before reclassifications 12,003 (29,401 ) 101 (17,297 ) Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (5,811 ) — — (5,811 ) Interest expense 261 — — 261 Total (5,550 ) — — (5,550 ) Net current period other comprehensive loss 6,453 (29,401 ) 101 (22,847 ) Net current period other comprehensive loss attributable to noncontrolling interests 6 4,797 — 4,803 Ending balance $ 15,631 $ (269,626 ) $ (60 ) $ (254,055 ) Nine Months Ended September 30, 2017 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 46,935 $ (301,330 ) $ (90 ) $ (254,485 ) Other comprehensive income before reclassifications (25,108 ) 68,124 (260 ) 42,756 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Other gains and (losses) (8,490 ) — — (8,490 ) Interest expense 1,024 — — 1,024 Total (7,466 ) 3,562 — (3,904 ) Net current period other comprehensive income (32,574 ) 71,686 (260 ) 38,852 Net current period other comprehensive gain attributable to noncontrolling interests 13 (13,961 ) — (13,948 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) See Note 9 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented. Dividends Declared During the third quarter of 2018 , our Board declared a quarterly dividend of $1.025 per share, which was paid on October 15, 2018 to stockholders of record on October 1, 2018. During the nine months ended September 30, 2018 , we declared dividends totaling $3.060 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually and intend to do so for the tax year ending December 31, 2018 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and nine months ended September 30, 2018 and 2017 . Certain of our subsidiaries have elected TRS status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. The accompanying consolidated financial statements include an interim tax provision for our TRSs and foreign subsidiaries, as necessary, for the three and nine months ended September 30, 2018 and 2017 . Current income tax benefit (expense) was $1.2 million and $(3.0) million for the three months ended September 30, 2018 and 2017 , respectively, and $(8.2) million and $(11.1) million for the nine months ended September 30, 2018 and 2017 , respectively. Our TRSs and foreign subsidiaries are subject to U.S. federal, state, and foreign income taxes. As such, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe that it is more likely than not that we will not realize the tax benefit of deferred tax assets based on available evidence at the time the determination is made. A change in circumstances may cause us to change our judgment about whether the tax benefit of a deferred tax asset will more likely than not be realized. We generally report any change in the valuation allowance through our income statement in the period in which such changes in circumstances occur. The majority of our deferred tax assets relate to the timing difference between the financial reporting basis and tax basis for stock-based compensation expense. The majority of our deferred tax liabilities relate to differences between the tax basis and financial reporting basis of the assets acquired in acquisitions in which the tax basis of such assets was not stepped up to fair value for income tax purposes. Provision for income taxes included deferred income tax (expense) benefits of $(3.9) million and $1.2 million for the three months ended September 30, 2018 and 2017 , respectively, and $5.2 million and $8.2 million for the nine months ended September 30, 2018 and 2017 , respectively. Benefit from income taxes for the nine months ended September 30, 2018 included a deferred tax benefit of approximately $6.2 million as a result of the release of a deferred tax liability that was no longer required due to a change in tax classification relating to a property holding company. |
Property Dispositions
Property Dispositions | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions | Property Dispositions We have an active capital recycling program, with a goal of extending the average lease term through reinvestment, improving portfolio credit quality through dispositions and acquisitions of assets, increasing the asset criticality factor in our portfolio, and/or executing strategic dispositions of assets. We may make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. All property dispositions are recorded within our Real Estate segment. 2018 — During the three and nine months ended September 30, 2018 , we sold three and ten properties, respectively, for total proceeds of $17.4 million and $95.1 million , respectively, net of selling costs, and recognized a net gain on these sales totaling $0.3 million and $12.7 million , respectively. Disposition activity included the sale of one of our two hotel operating properties in April 2018 ( Note 4 ). In addition, in June 2018, we completed a nonmonetary transaction, in which we disposed of 23 properties in exchange for the acquisition of one property leased to the same tenant. This swap was recorded based on the fair value of the property acquired of $85.5 million , which resulted in a net gain of $6.3 million , and was a non-cash investing activity ( Note 4 ). 2017 — During the three and nine months ended September 30, 2017 , we sold five properties, and 11 properties and a parcel of vacant land for total proceeds of $58.7 million and $102.5 million , respectively, net of selling costs, and recognized a net gain on these sales of $19.3 million and $22.7 million , respectively. In connection with the sale of a property in Malaysia in August 2017, and in accordance with ASC 830-30-40, Foreign Currency Matters , we reclassified $3.6 million of foreign currency translation losses from Accumulated other comprehensive loss to Gain on sale of real estate, net of tax (as a reduction to Gain on sale of real estate, net of tax), since the sale represented a disposal of our Malaysian investments ( Note 13 ). In addition, in January 2017, we transferred ownership of two international properties and the related non-recourse mortgage loan, which had an aggregate asset carrying value of $31.3 million and an outstanding balance of $28.1 million (net of $3.8 million of cash held in escrow that was retained by the mortgage lender), respectively, on the dates of transfer, to the mortgage lender, resulting in a net loss of less than $0.1 million . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We evaluate our results from operations through our two major business segments: Real Estate and Investment Management. The following tables present a summary of comparative results and assets for these business segments (in thousands): Real Estate Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues Lease revenues $ 167,088 $ 161,511 $ 492,935 $ 475,547 Reimbursable tenant costs 5,979 5,397 17,931 15,940 Operating property revenues (a) 4,282 8,449 16,365 23,652 Lease termination income and other 1,981 1,227 3,603 4,234 179,330 176,584 530,834 519,373 Operating Expenses Depreciation and amortization 66,837 62,970 195,131 186,481 General and administrative 11,349 11,234 34,013 27,311 Property expenses, excluding reimbursable tenant costs 7,953 10,556 26,760 31,196 Reimbursable tenant costs 5,979 5,397 17,931 15,940 Merger and other expenses 1,673 65 4,328 1,138 Stock-based compensation expense 1,380 1,880 7,676 4,733 Impairment charges — — 4,790 — 95,171 92,102 290,629 266,799 Other Income and Expenses Interest expense (41,740 ) (41,182 ) (121,125 ) (125,374 ) Equity in earnings of equity method investments in real estate 4,699 3,740 11,586 9,533 Other gains and (losses) 8,197 (4,918 ) 14,940 (6,249 ) (28,844 ) (42,360 ) (94,599 ) (122,090 ) Income before income taxes and gain on sale of real estate 55,315 42,122 145,606 130,484 (Provision for) benefit from income taxes (424 ) (1,511 ) 1,792 (6,696 ) Income before gain on sale of real estate 54,891 40,611 147,398 123,788 Gain on sale of real estate, net of tax 343 19,257 18,987 22,732 Net Income from Real Estate 55,234 59,868 166,385 146,520 Net income attributable to noncontrolling interests (4,225 ) (3,376 ) (10,760 ) (8,530 ) Net Income from Real Estate Attributable to W. P. Carey $ 51,009 $ 56,492 $ 155,625 $ 137,990 __________ (a) Operating property revenues are comprised of (i) $4.2 million for the three months ended September 30, 2017 , and $4.8 million and $12.4 million for the nine months ended September 30, 2018 and 2017 , respectively, generated from a hotel in Memphis, Tennessee, which was sold in April 2018 ( Note 15 ), and (ii) $4.3 million for both the three months ended September 30, 2018 and 2017 , and $11.5 million and $11.2 million for the nine months ended September 30, 2018 and 2017 , respectively, generated from a hotel in Bloomington, Minnesota. Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues Asset management revenue $ 17,349 $ 17,938 $ 51,602 $ 53,271 Structuring revenue 6,553 9,817 12,718 27,981 Reimbursable costs from affiliates 6,042 6,211 16,883 45,390 Other advisory revenue 110 99 300 896 Dealer manager fees — 105 — 4,430 30,054 34,170 81,503 131,968 Operating Expenses Reimbursable costs from affiliates 6,042 6,211 16,883 45,390 General and administrative 4,514 6,002 16,875 25,878 Subadvisor fees 3,127 5,206 7,014 11,598 Stock-based compensation expense 1,095 2,755 6,716 9,916 Depreciation and amortization 988 1,070 2,988 2,838 Restructuring and other compensation — 1,356 — 9,074 Dealer manager fees and expenses — 462 — 6,544 15,766 23,062 50,476 111,238 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 13,664 12,578 34,660 38,287 Other gains and (losses) 678 349 1,758 1,280 14,342 12,927 36,418 39,567 Income before income taxes 28,630 24,035 67,445 60,297 (Provision for) benefit from income taxes (2,291 ) (249 ) (4,767 ) 3,793 Net Income from Investment Management Attributable to W. P. Carey $ 26,339 $ 23,786 $ 62,678 $ 64,090 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 209,384 $ 210,754 $ 612,337 $ 651,341 Operating expenses 110,937 115,164 341,105 378,037 Other income and (expenses) (14,502 ) (29,433 ) (58,181 ) (82,523 ) Provision for income taxes (2,715 ) (1,760 ) (2,975 ) (2,903 ) Gain on sale of real estate, net of tax 343 19,257 18,987 22,732 Net income attributable to noncontrolling interests (4,225 ) (3,376 ) (10,760 ) (8,530 ) Net income attributable to W. P. Carey $ 77,348 $ 80,278 $ 218,303 $ 202,080 Total Assets at September 30, 2018 December 31, 2017 Real Estate $ 8,148,350 $ 7,885,751 Investment Management 370,638 345,651 Total Company $ 8,518,988 $ 8,231,402 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events CPA:17 Merger On June 17, 2018, we, CPA:17 – Global, and certain of our subsidiaries entered into the Merger Agreement, pursuant to which CPA:17 – Global would merge with and into one of our subsidiaries in exchange for shares of our common stock, subject to approvals of our stockholders and the stockholders of CPA:17 – Global. The CPA:17 Merger and related transactions were approved by both sets of stockholders on October 29, 2018 and completed on October 31, 2018. Subject to the terms and conditions contained in the Merger Agreement, at the effective time of the CPA:17 Merger, each share of CPA:17 – Global common stock issued and outstanding immediately prior to the effective time of the CPA:17 Merger was canceled and the rights attaching to such share were converted automatically into the right to receive 0.160 shares of our common stock, which we refer to herein as the Merger Consideration. Each share of CPA:17 – Global common stock owned by us or any of our subsidiaries immediately prior to the effective time of the CPA:17 Merger was automatically canceled and retired, and ceased to exist, for no Merger Consideration. We paid total Merger Consideration of approximately $3.6 billion , including the issuance of 53,849,087 shares of our common stock with a fair value of $3.6 billion , based on the closing price of our common stock on October 31, 2018 of $66.01 per share, to the stockholders of CPA:17 – Global in exchange for the 336,715,969 shares of CPA:17 – Global common stock that we and our affiliates did not previously own, and cash of $1.7 million paid in lieu of issuing any fractional shares. As a condition of the CPA:17 Merger, we waived certain back-end fees that we would have been entitled to receive from CPA:17 – Global upon its liquidation pursuant to the terms of our advisory agreement with CPA:17 – Global. CPA:17 – Global had a senior credit facility (comprised of a term loan and unsecured revolving credit facility) with an outstanding balance of approximately $180.3 million on October 31, 2018, the date of the closing of the CPA:17 Merger. On that date, we repaid in full all amounts outstanding under CPA:17 – Global’s senior credit facility using funds borrowed under our Unsecured Revolving Credit Facility. As of the date of this Report, we have not completed our initial accounting for the CPA:17 Merger, including the determination of the fair value of the assets acquired and liabilities assumed. Therefore, we are not yet able to present the pro forma impact of the CPA:17 Merger on our earnings for the three and nine months ended September 30, 2018 and 2017. The acquired assets and liabilities and related operating activity from the date of acquisition will be reflected in our consolidated financial statements as of and for the year ended December 31, 2018. Issuance of Senior Unsecured Notes On October 9, 2018, we completed a public offering of €500.0 million of 2.250% Senior Notes due 2026, at a price of 99.252% of par value, issued by our wholly owned subsidiary, WPC Eurobond B.V., which are guaranteed by us. These 2.250% Senior Notes due 2026 have a 7.5 -year term and are scheduled to mature on April 9, 2026. Proceeds from the issuances of these 2.250% Senior Notes due 2026 were used to partially pay down the amount then outstanding under the Unsecured Revolving Credit Facility. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. |
Basis of Consolidation | Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries and our tenancy-in-common interest as described below. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. |
Variable Interest Entity | When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At both September 30, 2018 and December 31, 2017 , we considered 28 entities to be VIEs, 21 of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 952,534 $ 916,001 Net investments in direct financing leases 38,847 40,133 In-place lease and other intangible assets 235,578 268,863 Above-market rent intangible assets 92,226 103,081 Accumulated depreciation and amortization (253,067 ) (251,979 ) Total assets 1,245,053 1,118,727 Non-recourse mortgages, net $ 113,901 $ 128,230 Total liabilities 208,206 201,186 At both September 30, 2018 and December 31, 2017 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments, which we account for under the equity method of accounting, and one unconsolidated entity, which we accounted for at fair value as of September 30, 2018 and under the cost method of accounting as of December 31, 2017 ( Note 7 ), and is included within our Investment Management segment. We do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities. As of September 30, 2018 and December 31, 2017 , the net carrying amount of our investments in these entities was $150.3 million and $152.7 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. At September 30, 2018 , we had an investment in a tenancy-in-common interest in various underlying international properties. Consolidation of this investment is not required as such interest does not qualify as a VIE and does not meet the control requirement for consolidation. Accordingly, we account for this investment using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of this investment. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments, nor do we have any legal obligation to fund operating deficits. At September 30, 2018 , none of our equity investments had carrying values below zero. |
New Accounting Policies | prior period amounts have been reclassified to conform to the current period presentation. Restricted Cash — In connection with our adoption of Accounting Standards Update, or ASU, 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , as described below, we revised our consolidated statements of cash flows to include restricted cash when reconciling the beginning-of-period and end-of-period cash amounts shown on the statement of cash flows. As a result, we retrospectively revised prior periods presented to conform to the current period presentation. Restricted cash primarily consists of security deposits and amounts required to be reserved pursuant to lender agreements for debt service, capital improvements, and real estate taxes. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 Cash and cash equivalents $ 176,612 $ 162,312 Restricted cash (a) 38,188 47,364 Total cash and cash equivalents and restricted cash $ 214,800 $ 209,676 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. Recent Accounting Pronouncements Pronouncements Adopted as of September 30, 2018 In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will primarily apply to revenues generated from our operating properties and our Investment Management business. We adopted this guidance for our interim and annual periods beginning January 1, 2018 using the modified retrospective transition method applied to any contracts not completed as of that date. There were no changes to the prior period presentations of revenue. Results of operations for reporting periods beginning January 1, 2018 are presented under Topic 606. The adoption of Topic 606 did not have a material impact on our consolidated financial statements. Revenue is recognized when, or as, control of promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. At contract inception, we assess the services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Revenue from contracts under Accounting Standards Codification, or ASC, 606 in our Real Estate segment primarily represented operating property revenues of $4.3 million and $8.4 million for the three months ended September 30, 2018 and 2017 , respectively, and $16.4 million and $23.7 million for the nine months ended September 30, 2018 and 2017 , respectively. Operating property revenues are primarily comprised of revenues from room rentals and from food and beverage services at our hotel operating properties during those periods. We sold one of our two hotels in April 2018 ( Note 15 ). We identified a single performance obligation for each distinct service. Performance obligations are typically satisfied at a point in time, at the time of sale, or at the rendering of the service. Fees are generally determined to be fixed. Payment is typically due immediately following the delivery of the service. Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 3 . In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 requires all equity investments (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value, with changes in the fair value recognized through net income. We adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2016-01 did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. As a result, we reclassified debt extinguishment costs from net cash provided by operating activities to net cash used in financing activities on the consolidated statement of cash flows for the nine months ended September 30, 2017 . The adoption of ASU 2016-15 did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We retrospectively adopted this guidance for our interim and annual periods beginning January 1, 2018. See Restricted Cash above for additional information. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets . ASU 2017-05 clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to non-customers, including partial sales. Nonfinancial assets within the scope of this Subtopic include the sale of land, buildings, and intangible assets. ASU 2017-05 further clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. We adopted this guidance for our interim and annual periods beginning January 1, 2018 and applied the modified retrospective transition method (applicable to any contracts not completed as of that date). The adoption of ASU 2017-05 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when to account for a change to the terms and conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. We adopted this guidance for our interim and annual periods beginning January 1, 2018. The adoption of ASU 2017-09 did not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement . ASU 2018-13 removes, modifies, and adds certain fair value disclosure requirements. We adopted this guidance for our interim period beginning July 1, 2018. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements to be Adopted after September 30, 2018 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 modifies the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract, the lessee and the lessor. ASU 2016-02 provides new guidelines that change the accounting for leasing arrangements for lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely equivalent to the current model, with the distinction between operating, sales-type, and direct financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Early application is permitted for all entities. ASU 2016-02 provides two transition methods. The first transition method allows for application of the new model at the beginning of the earliest comparative period presented. Under the second transition method, comparative periods would not be restated, with any cumulative effect adjustments recognized in the opening balance of retained earnings in the period of adoption. In addition, a practical expedient was recently issued by the FASB which allows lessors to combine non-lease components with related lease components if certain conditions are met. We will adopt this guidance for our interim and annual periods beginning January 1, 2019 and expect to use the second transition method. ASU 2016-02 will require extensive quantitative and qualitative disclosures. In addition, under ASU 2016-02, lessors will only capitalize incremental direct leasing costs. We have historically not capitalized internal legal and leasing costs incurred, and thus do not expect to be impacted by the change. Lessors are also expected to record costs paid directly by a lessee on behalf of a lessor (e.g., real estate taxes and insurance costs) on a gross basis. Further, in March 2018, the FASB approved, but has not yet finalized or issued, an update to allow lessors to make a policy election to record certain costs (e.g., insurance) paid directly by the lessee net, if the uncertainty regarding these variable amounts is not expected to ultimately be resolved. ASU 2016-02 is expected to impact our consolidated financial statements as we have certain operating office and land lease arrangements for which we are the lessee and also certain lease arrangements that include common area maintenance services (non-lease components) where we are the lessor. We are evaluating the impact of ASU 2016-02 and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2019. |
Intangible Assets and Liabilities and Goodwill | Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues; amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization; and amortization of above-market ground lease and below-market ground lease intangibles is included in Property expenses, excluding reimbursable tenant costs. We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from 3 years to 40 years . In addition, we have several ground lease intangibles that are being amortized over periods of up to 99 years . In-place lease and below-market ground lease (as lessee) intangibles, at cost are included in In-place lease and other intangible assets in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease, below-market ground lease (as lessee), and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent, above-market ground lease (as lessee), and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. |
Fair Value Measurement | The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. |
Earnings Per Share | Under current authoritative guidance for determining earnings per share, all nonvested share-based payment awards that contain non-forfeitable rights to dividends are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of our nonvested RSUs and RSAs contain rights to receive non-forfeitable dividend equivalents or dividends, respectively, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the nonvested participating RSUs and RSAs from the numerator and such nonvested shares in the denominator. |
Redeemable Interest | We accounted for the noncontrolling interest in our subsidiary, W. P. Carey International, LLC, or WPCI, held by a third party as a redeemable noncontrolling interest, because, pursuant to a put option held by the third party, we had an obligation to redeem the interest at fair value, subject to certain conditions. This obligation was required to be settled in shares of our common stock. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 952,534 $ 916,001 Net investments in direct financing leases 38,847 40,133 In-place lease and other intangible assets 235,578 268,863 Above-market rent intangible assets 92,226 103,081 Accumulated depreciation and amortization (253,067 ) (251,979 ) Total assets 1,245,053 1,118,727 Non-recourse mortgages, net $ 113,901 $ 128,230 Total liabilities 208,206 201,186 |
Reconciliation of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 Cash and cash equivalents $ 176,612 $ 162,312 Restricted cash (a) 38,188 47,364 Total cash and cash equivalents and restricted cash $ 214,800 $ 209,676 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Reconciliation of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): September 30, 2018 December 31, 2017 Cash and cash equivalents $ 176,612 $ 162,312 Restricted cash (a) 38,188 47,364 Total cash and cash equivalents and restricted cash $ 214,800 $ 209,676 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table sets forth certain information regarding our loans or lines of credit to affiliates (dollars in thousands): Interest Rate at September 30, 2018 Maturity Date at September 30, 2018 Maximum Loan Amount Authorized at September 30, 2018 Principal Outstanding Balance at (a) Managed Program September 30, 2018 December 31, 2017 CWI 1 (b) (c) LIBOR + 1.00% 6/30/2019 $ 65,802 $ 41,637 $ 68,637 CESH I (b) LIBOR + 1.00% 5/3/2019 35,000 14,461 14,461 CPA:18 – Global N/A N/A 50,000 — — CWI 2 N/A N/A 25,000 — — $ 56,098 $ 83,098 __________ (a) Amounts exclude accrued interest of $2.3 million and $0.9 million at September 30, 2018 and December 31, 2017 , respectively. (b) LIBOR means London Interbank Offered Rate. (c) Maximum loan amount authorized at December 31, 2017 to CWI 1 was $100.0 million . The following tables present a summary of revenue earned and/or cash received from the Managed Programs for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Asset management revenue (a) $ 17,349 $ 17,938 $ 51,602 $ 53,271 Distributions of Available Cash 13,135 12,047 32,413 34,568 Structuring revenue (a) 6,553 9,817 12,718 27,981 Reimbursable costs from affiliates (a) 6,042 6,211 16,883 45,390 Interest income on deferred acquisition fees and loans to affiliates 493 447 1,541 1,464 Other advisory revenue (a) 110 99 300 896 Dealer manager fees (a) — 105 — 4,430 $ 43,682 $ 46,664 $ 115,457 $ 168,000 Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 CPA:17 – Global $ 17,794 $ 15,383 $ 48,131 $ 55,645 CPA:18 – Global 11,377 4,042 29,411 18,361 CWI 1 8,204 11,940 20,826 26,051 CWI 2 5,537 11,643 14,982 45,206 CCIF — 1,787 — 12,777 CESH I 770 1,869 2,107 9,960 $ 43,682 $ 46,664 $ 115,457 $ 168,000 __________ (a) Amounts represent revenues from contracts under ASC 606. |
Schedule of Balances Due to and From Related Party | The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): September 30, 2018 December 31, 2017 Short-term loans to affiliates, including accrued interest $ 58,350 $ 84,031 Deferred acquisition fees receivable, including accrued interest 9,782 12,345 Asset management fees receivable 6,058 356 Reimbursable costs 4,972 4,315 Accounts receivable 1,706 4,089 Current acquisition fees receivable 1,679 83 Organization and offering costs — 89 $ 82,547 $ 105,308 |
Schedule of Related Party Fees | The following table presents a summary of our asset management fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA:17 – Global 0.5% – 1.75% In shares of its common stock and/or cash, at the option of CPA:17 – Global; payable in shares of its common stock through May 31, 2018; payable in cash effective as of June 1, 2018 in light of the CPA:17 Merger Rate depends on the type of investment and was based on the average market or average equity value, as applicable CPA:18 – Global 0.5% – 1.5% In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable in shares of its Class A common stock for 2018 and 2017 Rate depends on the type of investment and is based on the average market or average equity value, as applicable CWI 1 0.5% In shares of its common stock and/or cash, at our election; payable in shares of its common stock for 2018 and 2017 Rate is based on the average market value of the investment; we are required to pay 20% of the asset management revenue we receive to the subadvisor CWI 2 0.55% In shares of its Class A common stock and/or cash, at our election; payable in shares of its Class A common stock for 2018 and 2017 Rate is based on the average market value of the investment; we are required to pay 25% of the asset management revenue we receive to the subadvisor CCIF 1.75% – 2.00% In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Based on the average of gross assets at fair value; we were required to pay 50% of the asset management revenue we received to the subadvisor CESH I 1.0% In cash Based on gross assets at fair value The following table presents a summary of our structuring fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA:17 – Global 1% – 1.75%, 4.5% In cash; for non net-lease investments, 1% – 1.75% upon completion; for net-lease investments, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the net-lease investments made; also based on the total aggregate cost of the non net-lease investments or commitments made; total limited to 6% of the contract prices in aggregate CPA:18 – Global 4.5% In cash; for all investments, other than readily marketable real estate securities for which we will not receive any acquisition fees, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the investments or commitments made; total limited to 6% of the contract prices in aggregate CWI REITs 1% – 2.5% In cash upon completion; loan refinancing transactions up to 1% of the principal amount; 2.5% of the total investment cost of the properties acquired, however, fees were paid 50% in cash and 50% in shares of CWI 1’s common stock and CWI 2’s Class A common stock for a jointly owned investment structured on behalf of CWI 1 and CWI 2 in September 2017, with the approval of each CWI REIT’s board of directors Based on the total aggregate cost of the lodging investments or commitments made; we are required to pay 20% and 25% to the subadvisors of CWI 1 and CWI 2, respectively; total for each CWI REIT limited to 6% of the contract prices in aggregate CESH I 2.0% In cash upon acquisition Based on the total aggregate cost of investments or commitments made, including the acquisition, development, construction, or redevelopment of the investments The Managed Programs will continue to reimburse us for certain personnel and overhead costs that we incur on their behalf, a summary of which is presented in the table below: Managed Program Payable Description CPA:17 – Global and CPA:18 – Global In cash Personnel and overhead costs, excluding those related to our legal transactions group, our senior management, and our investments team, are charged to the CPA REITs based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and are capped at 1.0% and 2.0% of each CPA REIT’s pro rata lease revenues for 2018 and 2017, respectively; for the legal transactions group, costs are charged according to a fee schedule CWI 1 and CWI 2 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CCIF and CCIF Feeder Funds In cash Actual expenses incurred, excluding those related to their investment management team and senior management team, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) CESH I In cash Actual expenses incurred |
Land, Buildings and Improveme_2
Land, Buildings and Improvements and Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Net Investments in Real Estate Properties | Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Land $ 1,130,930 $ 1,125,539 Buildings and improvements 4,596,754 4,208,907 Real estate under construction 24,430 39,772 Less: Accumulated depreciation (699,584 ) (613,543 ) $ 5,052,530 $ 4,760,675 Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands): September 30, 2018 December 31, 2017 Land $ 3,874 $ 6,041 Buildings and improvements 38,506 77,006 Less: Accumulated depreciation (8,039 ) (16,419 ) $ 34,341 $ 66,628 |
Schedule of Assets Held for Sale | Below is a summary of our properties held for sale (in thousands): September 30, 2018 December 31, 2017 Land, buildings and improvements $ 74,628 $ — In-place lease and other intangible assets 51,009 — Above-market rent intangible assets 8,570 — Accumulated depreciation and amortization (25,477 ) — Assets held for sale, net $ 108,730 $ — |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Finance Receivables Credit Quality Indicators | A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 1 - 3 26 24 $ 628,744 $ 608,101 4 6 8 83,058 123,477 5 — — — — $ 711,802 $ 731,578 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule Of Intangible Assets And Goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 18,814 $ (9,972 ) $ 8,842 $ 18,649 $ (7,862 ) $ 10,787 Trade name 3,975 (997 ) 2,978 3,975 (401 ) 3,574 22,789 (10,969 ) 11,820 22,624 (8,263 ) 14,361 Lease Intangibles: In-place lease 1,175,176 (460,774 ) 714,402 1,194,055 (421,686 ) 772,369 Above-market rent 626,390 (314,487 ) 311,903 640,480 (276,110 ) 364,370 Below-market ground lease 18,238 (2,172 ) 16,066 18,936 (1,855 ) 17,081 1,819,804 (777,433 ) 1,042,371 1,853,471 (699,651 ) 1,153,820 Indefinite-Lived Goodwill and Intangible Assets Goodwill 641,734 — 641,734 643,960 — 643,960 Below-market ground lease 6,371 — 6,371 985 — 985 648,105 — 648,105 644,945 — 644,945 Total intangible assets $ 2,490,698 $ (788,402 ) $ 1,702,296 $ 2,521,040 $ (707,914 ) $ 1,813,126 Finite-Lived Intangible Liabilities Below-market rent $ (133,547 ) $ 54,015 $ (79,532 ) $ (135,704 ) $ 48,657 $ (87,047 ) Above-market ground lease (13,159 ) 3,504 (9,655 ) (13,245 ) 3,046 (10,199 ) (146,706 ) 57,519 (89,187 ) (148,949 ) 51,703 (97,246 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (163,417 ) $ 57,519 $ (105,898 ) $ (165,660 ) $ 51,703 $ (113,957 ) |
Equity Investments in the Man_2
Equity Investments in the Managed Programs and Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table presents Equity in earnings of equity method investments in the Managed Programs and real estate, which represents our proportionate share of the income or losses of these investments, as well as certain adjustments related to amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Distributions of Available Cash ( Note 3 ) $ 13,135 $ 12,047 $ 32,413 $ 34,568 Proportionate share of equity in earnings of equity investments in the Managed Programs 1,136 886 4,166 4,688 Amortization of basis differences on equity method investments in the Managed Programs (607 ) (355 ) (1,919 ) (969 ) Total equity in earnings of equity method investments in the Managed Programs 13,664 12,578 34,660 38,287 Equity in earnings of equity method investments in real estate 5,264 4,244 13,251 11,404 Amortization of basis differences on equity method investments in real estate (565 ) (504 ) (1,665 ) (1,871 ) Total equity in earnings of equity method investments in real estate 4,699 3,740 11,586 9,533 Equity in earnings of equity method investments in the Managed Programs and real estate $ 18,363 $ 16,318 $ 46,246 $ 47,820 The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 CPA:17 – Global (a) 4.572 % 4.186 % $ 130,145 $ 125,676 CPA:17 – Global operating partnership 0.009 % 0.009 % — — CPA:18 – Global (a) 3.228 % 2.540 % 36,810 28,433 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 (a) 2.830 % 2.119 % 36,026 26,810 CWI 1 operating partnership 0.015 % 0.015 % 186 186 CWI 2 (a) 2.554 % 1.786 % 23,219 16,495 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CESH I (b) 2.430 % 2.430 % 3,397 3,299 $ 230,292 $ 201,408 __________ (a) During 2018, we received asset management revenue from the Managed REITs in shares of their common stock, which increased our ownership percentage in each of the Managed REITs. Effective as of June 1, 2018, we began receiving asset management revenue from CPA:17 – Global in cash in light of the CPA:17 Merger, which closed on October 31, 2018 ( Note 1 , Note 3 , Note 17 ). (b) Investment is accounted for at fair value. The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee Co-owner Ownership Interest September 30, 2018 December 31, 2017 The New York Times Company (a) (b) CPA:17 – Global 45% $ 68,945 $ 69,401 Frontier Spinning Mills, Inc. (a) CPA:17 – Global 40% 24,074 24,153 Beach House JV, LLC (c) Third Party N/A 15,105 15,105 ALSO Actebis GmbH (a) (d) CPA:17 – Global 30% 11,401 12,009 Jumbo Logistiek Vastgoed B.V. (a) (d) (e) CPA:17 – Global 15% 9,430 10,661 Wagon Automotive GmbH (a) (d) (f) CPA:17 – Global 33% 6,016 8,386 Wanbishi Archives Co. Ltd. (a) (g) CPA:17 – Global 3% 1,043 334 $ 136,014 $ 140,049 __________ (a) Subsequent to the CPA:17 Merger in October 2018, we consolidate these wholly owned investments ( Note 17 ). (b) I n January 2018, this tenant exercised its option to repurchase the property it is leasing for $250.0 million . There can be no assurance that such repurchase will be completed. (c) This investment is in the form of a preferred equity interest. (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (e) This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. The co-obligor is CPA:17 – Global and the amount due under the arrangement was approximately $72.5 million at September 30, 2018 . Of this amount, $10.9 million represents the amount we were liable for and is included within the carrying value of the investment at September 30, 2018 . (f) In August 2018, this investment sold one of its two properties for $7.7 million , net of selling costs (our proportionate share was $2.6 million ), and recognized a net gain on the sale of $4.6 million (our proportionate share was $1.5 million ). (g) The carrying value of this investment is affected by fluctuations in the exchange rate of the yen. In January 2018, we contributed $0.7 million to this jointly owned investment in connection with the repayment of the non-recourse mortgage loan encumbering the investment. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Other Financial Instruments In Carrying Values And Fair Values | Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): September 30, 2018 December 31, 2017 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 3,007,453 $ 3,055,120 $ 2,474,661 $ 2,588,032 Non-recourse mortgages, net (a) (b) (d) 3 959,951 957,332 1,185,477 1,196,399 Note receivable (d) 3 9,651 9,503 9,971 9,639 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $16.7 million and $14.7 million at September 30, 2018 and December 31, 2017 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.9 million and $1.0 million at September 30, 2018 and December 31, 2017 , respectively. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $12.2 million and $9.9 million at September 30, 2018 and December 31, 2017 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $1.9 million and $1.7 million at September 30, 2018 and December 31, 2017 , respectively. (c) We determined the estimated fair value of the Senior Unsecured Notes using observed market prices in an open market with limited trading volume. (d) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. |
Risk Management and Use of De_2
Risk Management and Use of Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table sets forth certain information regarding our derivative instruments (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Foreign currency forward contracts Other assets, net $ 15,486 $ 12,737 $ — $ — Foreign currency collars Other assets, net 6,392 4,931 — — Interest rate swaps Other assets, net 1,500 523 — — Interest rate cap Other assets, net 4 20 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (3,167 ) (6,805 ) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (164 ) (1,108 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 3,886 3,685 — — Interest rate swap (a) Other assets, net — 19 — — Total derivatives $ 27,268 $ 21,915 $ (3,331 ) $ (7,913 ) __________ (a) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive (Loss) Income (Effective Portion) (a) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2018 2017 2018 2017 Foreign currency collars $ 1,267 $ (5,398 ) $ 5,117 $ (16,002 ) Foreign currency forward contracts (786 ) (4,752 ) (644 ) (16,422 ) Interest rate swaps 244 250 1,664 779 Interest rate cap (1 ) (17 ) (12 ) (26 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts 1,100 (1,171 ) 3,416 (5,347 ) Total $ 1,824 $ (11,088 ) $ 9,541 $ (37,018 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency forward contracts Other gains and (losses) $ 1,752 $ 1,454 $ 4,556 $ 5,336 Foreign currency collars Other gains and (losses) 681 735 1,255 3,154 Interest rate swaps and cap Interest expense (10 ) (286 ) (261 ) (1,024 ) Total $ 2,423 $ 1,903 $ 5,550 $ 7,466 __________ (a) Excludes net gains of less than $0.1 million and net losses of $0.4 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2018 and 2017 , respectively, and net gains of $0.3 million and net losses of $0.9 million for the nine months ended September 30, 2018 and 2017 , respectively. (b) The effective portion of the changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive (loss) income . |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Foreign currency collars Other gains and (losses) $ 135 $ (225 ) $ 455 $ (718 ) Stock warrants Other gains and (losses) — 134 201 (201 ) Foreign currency forward contracts Other gains and (losses) — (19 ) (125 ) (19 ) Interest rate swaps Other gains and (losses) — 2 7 11 Derivatives in Cash Flow Hedging Relationships (a) Interest rate swaps Interest expense 36 153 249 455 Foreign currency collars Other gains and (losses) (3 ) (13 ) (24 ) (11 ) Foreign currency forward contracts Other gains and (losses) — (14 ) — (75 ) Total $ 168 $ 18 $ 763 $ (558 ) __________ (a) Relates to the ineffective portion of the hedging relationship. |
Schedule of Derivative Instruments | The following table presents the foreign currency derivative contracts we had outstanding at September 30, 2018 (currency in thousands): Number of Instruments Notional Fair Value at September 30, 2018 Foreign Currency Derivatives Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 13 47,800 EUR $ 9,980 Foreign currency collars 31 39,000 GBP 4,615 Foreign currency collars 31 101,275 EUR (1,390 ) Foreign currency forward contracts 5 6,385 AUD 541 Foreign currency forward contracts 1 540 GBP 148 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 2 68,999 AUD 4,817 $ 18,711 The interest rate swaps and cap that our consolidated subsidiaries had outstanding at September 30, 2018 are summarized as follows (currency in thousands): Number of Instruments Notional Amount Fair Value at (a) Interest Rate Derivatives Designated as Cash Flow Hedging Instruments Interest rate swaps 9 86,863 USD $ 1,336 Interest rate cap 1 30,050 EUR 4 $ 1,340 __________ (a) Fair value amounts are based on the exchange rate of the euro at September 30, 2018 , as applicable. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Unsecured Credit Facilities | The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Interest Rate at (a) Maturity Date at September 30, 2018 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2018 December 31, 2017 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in euros (b) EURIBOR + 1.00% 2/22/2021 $ 449,380 $ 111,775 Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 247,000 105,000 696,380 216,775 Unsecured Term Loans (c) : Term Loan — borrowing in euros (d) N/A N/A — 283,425 Delayed Draw Term Loan — borrowing in euros N/A N/A — 106,348 — 389,773 $ 696,380 $ 606,548 __________ (a) The applicable interest rate at September 30, 2018 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) EURIBOR means Euro Interbank Offered Rate. (c) On March 7, 2018, we repaid and terminated our Unsecured Term Loans in full, as described above. (d) Balance excludes unamortized discount of $1.2 million and unamortized deferred financing costs of $0.2 million at December 31, 2017 . |
Schedule of Senior Unsecured Notes | The following table presents a summary of our Senior Unsecured Notes outstanding at September 30, 2018 (currency in millions): Original Issue Discount Effective Interest Rate Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date Principal Amount Price of Par Value Coupon Rate Maturity Date September 30, 2018 December 31, 2017 2.0% Senior Notes due 2023 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 578.8 $ 599.7 4.6% Senior Notes due 2024 3/14/2014 $ 500.0 99.639 % $ 1.8 4.645 % 4.6 % 4/1/2024 500.0 500.0 2.25% Senior Notes due 2024 1/19/2017 € 500.0 99.448 % $ 2.9 2.332 % 2.25 % 7/19/2024 578.8 599.7 4.0% Senior Notes due 2025 1/26/2015 $ 450.0 99.372 % $ 2.8 4.077 % 4.0 % 2/1/2025 450.0 450.0 4.25% Senior Notes due 2026 9/12/2016 $ 350.0 99.682 % $ 1.1 4.290 % 4.25 % 10/1/2026 350.0 350.0 2.125% Senior Notes due 2027 3/6/2018 € 500.0 99.324 % $ 4.2 2.208 % 2.125 % 4/15/2027 578.8 — $ 3,036.4 $ 2,499.4 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $16.7 million and $14.7 million , and unamortized discount totaling $12.2 million and $9.9 million , at September 30, 2018 and December 31, 2017 , respectively. |
Scheduled Debt Principal Payments | Scheduled debt principal payments during the remainder of 2018 , each of the next four calendar years following December 31, 2018 , and thereafter through 2027 are as follows (in thousands): Years Ending December 31, Total (a) 2018 (remainder) $ 32,885 2019 91,760 2020 220,661 2021 855,589 2022 240,696 Thereafter through 2027 3,253,934 Total principal payments 4,695,525 Unamortized deferred financing costs (17,638 ) Unamortized discount, net (b) (14,103 ) Total $ 4,663,784 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at September 30, 2018 . (b) Represents the unamortized discount on the Senior Unsecured Notes of $12.2 million in aggregate and unamortized discount of $1.9 million in aggregate primarily resulting from the assumption of property-level debt in connection with business combinations completed in prior years. |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Restricted and Conditional Award Activity | Nonvested restricted share awards, or RSAs, RSUs, and PSUs at September 30, 2018 and changes during the nine months ended September 30, 2018 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2018 324,339 $ 61.43 281,299 $ 74.57 Granted (a) 137,519 64.50 75,864 75.81 Vested (b) (179,412 ) 62.22 (66,632 ) 76.96 Forfeited (3,079 ) 61.71 (3,098 ) 76.49 Adjustment (c) — — 40,308 75.11 Nonvested at September 30, 2018 (d) 279,367 $ 62.43 327,741 $ 78.99 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three -year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 2018 , we used a risk-free interest rate of 2.2% , an expected volatility rate of 17.2% , and assumed a dividend yield of zero . (b) The grant date fair value of shares vested during the nine months ended September 30, 2018 was $16.3 million . Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 2018 and December 31, 2017 , we had an obligation to issue 873,671 and 1,140,632 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $36.2 million and $46.7 million , respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three -year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at September 30, 2018 to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2018 , total unrecognized compensation expense related to these awards was approximately $21.4 million , with an aggregate weighted-average remaining term of 1.9 years . |
Earnings Per Share Reconciliation | The following table summarizes basic and diluted earnings (in thousands, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income attributable to W. P. Carey $ 77,348 $ 80,278 $ 218,303 $ 202,080 Net income attributable to nonvested participating RSUs and RSAs (99 ) (239 ) (279 ) (600 ) Net income — basic and diluted $ 77,249 $ 80,039 $ 218,024 $ 201,480 Weighted-average shares outstanding — basic 108,073,969 108,019,292 108,063,826 107,751,672 Effect of dilutive securities 209,697 124,402 190,015 195,818 Weighted-average shares outstanding — diluted 108,283,666 108,143,694 108,253,841 107,947,490 |
Reclassification Out of Accumulated Other Comprehensive Income | The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended September 30, 2018 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 14,858 $ (262,469 ) $ 209 $ (247,402 ) Other comprehensive loss before reclassifications 3,195 (8,102 ) (269 ) (5,176 ) Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (2,433 ) — — (2,433 ) Interest expense 10 — — 10 Total (2,423 ) — — (2,423 ) Net current period other comprehensive loss 772 (8,102 ) (269 ) (7,599 ) Net current period other comprehensive loss attributable to noncontrolling interests 1 945 — 946 Ending balance $ 15,631 $ (269,626 ) $ (60 ) $ (254,055 ) Three Months Ended September 30, 2017 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 24,636 $ (267,868 ) $ (416 ) $ (243,648 ) Other comprehensive income before reclassifications (8,367 ) 25,417 66 17,116 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Other gains and (losses) (2,189 ) — — (2,189 ) Interest expense 286 — — 286 Total (1,903 ) 3,562 — 1,659 Net current period other comprehensive income (10,270 ) 28,979 66 18,775 Net current period other comprehensive gain attributable to noncontrolling interests 8 (4,716 ) — (4,708 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Nine Months Ended September 30, 2018 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 9,172 $ (245,022 ) $ (161 ) $ (236,011 ) Other comprehensive loss before reclassifications 12,003 (29,401 ) 101 (17,297 ) Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (5,811 ) — — (5,811 ) Interest expense 261 — — 261 Total (5,550 ) — — (5,550 ) Net current period other comprehensive loss 6,453 (29,401 ) 101 (22,847 ) Net current period other comprehensive loss attributable to noncontrolling interests 6 4,797 — 4,803 Ending balance $ 15,631 $ (269,626 ) $ (60 ) $ (254,055 ) Nine Months Ended September 30, 2017 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 46,935 $ (301,330 ) $ (90 ) $ (254,485 ) Other comprehensive income before reclassifications (25,108 ) 68,124 (260 ) 42,756 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Other gains and (losses) (8,490 ) — — (8,490 ) Interest expense 1,024 — — 1,024 Total (7,466 ) 3,562 — (3,904 ) Net current period other comprehensive income (32,574 ) 71,686 (260 ) 38,852 Net current period other comprehensive gain attributable to noncontrolling interests 13 (13,961 ) — (13,948 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present a summary of comparative results and assets for these business segments (in thousands): Real Estate Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues Lease revenues $ 167,088 $ 161,511 $ 492,935 $ 475,547 Reimbursable tenant costs 5,979 5,397 17,931 15,940 Operating property revenues (a) 4,282 8,449 16,365 23,652 Lease termination income and other 1,981 1,227 3,603 4,234 179,330 176,584 530,834 519,373 Operating Expenses Depreciation and amortization 66,837 62,970 195,131 186,481 General and administrative 11,349 11,234 34,013 27,311 Property expenses, excluding reimbursable tenant costs 7,953 10,556 26,760 31,196 Reimbursable tenant costs 5,979 5,397 17,931 15,940 Merger and other expenses 1,673 65 4,328 1,138 Stock-based compensation expense 1,380 1,880 7,676 4,733 Impairment charges — — 4,790 — 95,171 92,102 290,629 266,799 Other Income and Expenses Interest expense (41,740 ) (41,182 ) (121,125 ) (125,374 ) Equity in earnings of equity method investments in real estate 4,699 3,740 11,586 9,533 Other gains and (losses) 8,197 (4,918 ) 14,940 (6,249 ) (28,844 ) (42,360 ) (94,599 ) (122,090 ) Income before income taxes and gain on sale of real estate 55,315 42,122 145,606 130,484 (Provision for) benefit from income taxes (424 ) (1,511 ) 1,792 (6,696 ) Income before gain on sale of real estate 54,891 40,611 147,398 123,788 Gain on sale of real estate, net of tax 343 19,257 18,987 22,732 Net Income from Real Estate 55,234 59,868 166,385 146,520 Net income attributable to noncontrolling interests (4,225 ) (3,376 ) (10,760 ) (8,530 ) Net Income from Real Estate Attributable to W. P. Carey $ 51,009 $ 56,492 $ 155,625 $ 137,990 __________ (a) Operating property revenues are comprised of (i) $4.2 million for the three months ended September 30, 2017 , and $4.8 million and $12.4 million for the nine months ended September 30, 2018 and 2017 , respectively, generated from a hotel in Memphis, Tennessee, which was sold in April 2018 ( Note 15 ), and (ii) $4.3 million for both the three months ended September 30, 2018 and 2017 , and $11.5 million and $11.2 million for the nine months ended September 30, 2018 and 2017 , respectively, generated from a hotel in Bloomington, Minnesota. Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues Asset management revenue $ 17,349 $ 17,938 $ 51,602 $ 53,271 Structuring revenue 6,553 9,817 12,718 27,981 Reimbursable costs from affiliates 6,042 6,211 16,883 45,390 Other advisory revenue 110 99 300 896 Dealer manager fees — 105 — 4,430 30,054 34,170 81,503 131,968 Operating Expenses Reimbursable costs from affiliates 6,042 6,211 16,883 45,390 General and administrative 4,514 6,002 16,875 25,878 Subadvisor fees 3,127 5,206 7,014 11,598 Stock-based compensation expense 1,095 2,755 6,716 9,916 Depreciation and amortization 988 1,070 2,988 2,838 Restructuring and other compensation — 1,356 — 9,074 Dealer manager fees and expenses — 462 — 6,544 15,766 23,062 50,476 111,238 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 13,664 12,578 34,660 38,287 Other gains and (losses) 678 349 1,758 1,280 14,342 12,927 36,418 39,567 Income before income taxes 28,630 24,035 67,445 60,297 (Provision for) benefit from income taxes (2,291 ) (249 ) (4,767 ) 3,793 Net Income from Investment Management Attributable to W. P. Carey $ 26,339 $ 23,786 $ 62,678 $ 64,090 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ 209,384 $ 210,754 $ 612,337 $ 651,341 Operating expenses 110,937 115,164 341,105 378,037 Other income and (expenses) (14,502 ) (29,433 ) (58,181 ) (82,523 ) Provision for income taxes (2,715 ) (1,760 ) (2,975 ) (2,903 ) Gain on sale of real estate, net of tax 343 19,257 18,987 22,732 Net income attributable to noncontrolling interests (4,225 ) (3,376 ) (10,760 ) (8,530 ) Net income attributable to W. P. Carey $ 77,348 $ 80,278 $ 218,303 $ 202,080 |
Reconciliation of Assets from Segment to Consolidated | Total Assets at September 30, 2018 December 31, 2017 Real Estate $ 8,148,350 $ 7,885,751 Investment Management 370,638 345,651 Total Company $ 8,518,988 $ 8,231,402 |
Business and Organization - Nar
Business and Organization - Narratives (Details) ft² in Millions | 9 Months Ended |
Sep. 30, 2018ft²propertytenant | |
Hotel | |
Additional disclosures | |
Number of real estate properties | 1 |
Real Estate | |
Additional disclosures | |
Number of real estate properties | 913 |
Square footage of real estate properties | ft² | 89.3 |
Number of tenants | tenant | 210 |
Weighted average lease term | 10 years 2 months 12 days |
Occupancy rate | 98.70% |
Real Estate | Hotel | |
Additional disclosures | |
Number of real estate properties | 1 |
Investment Management | CPA REITs | |
Additional disclosures | |
Number of real estate properties | 461 |
Square footage of real estate properties | ft² | 53.7 |
Number of tenants | tenant | 204 |
Occupancy rate | 97.60% |
Investment Management | Managed Programs | |
Additional disclosures | |
Number of real estate properties | 172 |
Square footage of real estate properties | ft² | 19.7 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2018property | Sep. 30, 2018USD ($)vieproperty | Sep. 30, 2017USD ($)property | Sep. 30, 2018USD ($)vieproperty | Sep. 30, 2017USD ($)property | Dec. 31, 2017USD ($)vieproperty | |
Basis of Consolidation | ||||||
Variable interest entities, count | vie | 28 | 28 | 28 | |||
Variable interest entities consolidated, count | vie | 21 | 21 | 21 | |||
Variable interest entities unconsolidated, count | vie | 7 | 7 | 7 | |||
Variable interest entity, maximum exposure to loss | $ | $ 150,300 | $ 150,300 | $ 152,700 | |||
Hotel | ||||||
Basis of Consolidation | ||||||
Number of real estate properties | 1 | 1 | ||||
Properties disposed of by sale | ||||||
Basis of Consolidation | ||||||
Number of properties sold | 3 | 5 | 10 | 11 | ||
Properties disposed of by sale | Land, buildings and improvements | ||||||
Basis of Consolidation | ||||||
Number of properties sold | 1 | 8 | ||||
Properties disposed of by sale | Land, buildings and improvements | Hotel | ||||||
Basis of Consolidation | ||||||
Number of real estate properties | 2 | |||||
Real Estate | ||||||
Basis of Consolidation | ||||||
Number of real estate properties | 913 | 913 | ||||
Real Estate | Hotel | ||||||
Basis of Consolidation | ||||||
Number of real estate properties | 1 | 1 | ||||
Real Estate | Operating property revenues | ||||||
Basis of Consolidation | ||||||
Gross contract revenue | $ | $ 4,282 | $ 8,449 | $ 16,365 | $ 23,652 | ||
Managed Programs | ||||||
Basis of Consolidation | ||||||
Variable interest entities unconsolidated, count | vie | 1 | 1 | 1 | |||
Real Estate | ||||||
Basis of Consolidation | ||||||
Variable interest entities unconsolidated, count | vie | 6 | 6 | 6 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Land, buildings and improvements | $ 5,794,494 | $ 5,457,265 |
Net investments in direct financing leases | 702,151 | 721,607 |
In-place lease and other intangible assets | 1,199,785 | 1,213,976 |
Above-market rent intangible assets | 626,390 | 640,480 |
Accumulated depreciation and amortization | (1,485,056) | (1,329,613) |
Total assets | 8,518,988 | 8,231,402 |
Liabilities | ||
Non-recourse mortgages, net | 959,951 | 1,185,477 |
Total liabilities | 5,245,979 | 4,819,052 |
Variable Interest Entity | ||
Assets | ||
Land, buildings and improvements | 952,534 | 916,001 |
Net investments in direct financing leases | 38,847 | 40,133 |
In-place lease and other intangible assets | 235,578 | 268,863 |
Above-market rent intangible assets | 92,226 | 103,081 |
Accumulated depreciation and amortization | (253,067) | (251,979) |
Total assets | 1,245,053 | 1,118,727 |
Liabilities | ||
Non-recourse mortgages, net | 113,901 | 128,230 |
Total liabilities | $ 208,206 | $ 201,186 |
Basis of Presentation - Cash an
Basis of Presentation - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 176,612 | $ 162,312 | ||
Restricted cash | 38,188 | 47,364 | ||
Total cash and cash equivalents and restricted cash | $ 214,800 | $ 209,676 | $ 219,144 | $ 210,731 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Narratives (Details) - USD ($) $ in Millions | Jul. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2018 |
Related Party Transaction | |||
Merger related expenses | $ 4.6 | ||
Distributions Of Available Cash and Deferred Revenue Earned | |||
Percentage of Available cash distribution to advisor | 10.00% | ||
Minimum | |||
Other Transactions with Affiliates | |||
Ownership interest in joint ventures | 3.00% | ||
Maximum | |||
Other Transactions with Affiliates | |||
Ownership interest in joint ventures | 90.00% | ||
CESH I | Gross proceeds | |||
Distributions Of Available Cash and Deferred Revenue Earned | |||
Advisory fee rate | 2.50% | ||
Managed Reits | |||
Distributions Of Available Cash and Deferred Revenue Earned | |||
Advisory agreement, term | 1 year | ||
CWI | |||
Distributions Of Available Cash and Deferred Revenue Earned | |||
Percentage of Available cash distribution to advisor | 20.00% | ||
CWI 2 | |||
Distributions Of Available Cash and Deferred Revenue Earned | |||
Percentage of Available cash distribution to advisor | 25.00% |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction | ||||
Distributions of Available Cash | $ 13,135 | $ 12,047 | $ 32,413 | $ 34,568 |
Interest income on deferred acquisition fees and loans to affiliates | 493 | 447 | 1,541 | 1,464 |
Revenue from related parties | 43,682 | 46,664 | 115,457 | 168,000 |
Asset management revenue | ||||
Related Party Transaction | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Structuring revenue | ||||
Related Party Transaction | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Reimbursable costs from affiliates | ||||
Related Party Transaction | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Other advisory revenue | ||||
Related Party Transaction | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Dealer manager fees | ||||
Related Party Transaction | ||||
Gross contract revenue | $ 0 | $ 105 | $ 0 | $ 4,430 |
Agreements and Transactions w_5
Agreements and Transactions with Related Parties - Related Party Income, by Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction | ||||
Revenue from related parties | $ 43,682 | $ 46,664 | $ 115,457 | $ 168,000 |
CPA: 17 - Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 17,794 | 15,383 | 48,131 | 55,645 |
CPA:18 - Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 11,377 | 4,042 | 29,411 | 18,361 |
CWI | ||||
Related Party Transaction | ||||
Revenue from related parties | 8,204 | 11,940 | 20,826 | 26,051 |
CWI 2 | ||||
Related Party Transaction | ||||
Revenue from related parties | 5,537 | 11,643 | 14,982 | 45,206 |
CCIF | ||||
Related Party Transaction | ||||
Revenue from related parties | 0 | 1,787 | 0 | 12,777 |
CESH I | ||||
Related Party Transaction | ||||
Revenue from related parties | $ 770 | $ 1,869 | $ 2,107 | $ 9,960 |
Agreements and Transactions w_6
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Due from affiliates | ||
Short-term loans to affiliates, including accrued interest | $ 58,350 | $ 84,031 |
Deferred acquisition fees receivable, including accrued interest | 9,782 | 12,345 |
Asset management fees receivable | 6,058 | 356 |
Reimbursable costs | 4,972 | 4,315 |
Accounts receivable | 1,706 | 4,089 |
Current acquisition fees receivable | 1,679 | 83 |
Organization and offering costs | 0 | 89 |
Due from affiliates | $ 82,547 | $ 105,308 |
Agreements and Transactions w_7
Agreements and Transactions with Related Parties - Asset Management and Structuring Revenue (Details) | 9 Months Ended |
Sep. 30, 2018 | |
CWI REITs | |
Structuring revenue | |
Loan refinancing fee (percentage) | 1.00% |
Contract sales price of investment | CWI REITs | |
Structuring revenue | |
Percentage of structuring fees paid in cash | 50.00% |
Percentage of structuring fees paid in shares | 50.00% |
Contract sales price of investment | CESH I | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
Average gross assets | CCIF | |
Related Party Transaction | |
Fees earned by advisor paid to subadvisor (percentage) | 50.00% |
Average market value of investment | CWI | |
Related Party Transaction | |
Fees earned by advisor paid to subadvisor (percentage) | 20.00% |
Average market value of investment | CWI 2 | |
Related Party Transaction | |
Fees earned by advisor paid to subadvisor (percentage) | 25.00% |
Minimum | Lodging-related investments | CWI REITs | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 1.00% |
Minimum | Average equity value | CPA: 17 - Global | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 1.00% |
Minimum | Average equity value | CPA:18 - Global | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
Minimum | Average gross assets | CCIF | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.75% |
Maximum | Contract sales price of investment | CPA: 17 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 6.00% |
Maximum | Contract sales price of investment | CPA:18 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 6.00% |
Maximum | Contract sales price of investment | CWI REITs | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 6.00% |
Maximum | Lodging-related investments | CWI REITs | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% |
Maximum | Average equity value | CPA: 17 - Global | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.75% |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 1.75% |
Maximum | Average equity value | CPA:18 - Global | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.50% |
Maximum | Average gross assets | CCIF | |
Related Party Transaction | |
Asset management fees earned (percentage) | 2.00% |
Long-term net lease | CPA: 17 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% |
Long-term net lease | CPA:18 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% |
Lodging-related investments | CWI | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
Lodging-related investments | CWI 2 | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.55% |
Gross assets fair value | CESH I | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.00% |
Upon Completion | Long-term net lease | CPA: 17 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% |
Upon Completion | Long-term net lease | CPA:18 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% |
Deferred | Long-term net lease | CPA: 17 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
Deferred | Long-term net lease | CPA:18 - Global | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
Agreements and Transactions w_8
Agreements and Transactions with Related Parties - Personnel, Overhead Costs, Organization and Offering (Details) | Sep. 30, 2018 | Dec. 31, 2017 |
CPA REITs | ||
Reimbursed Costs | ||
Personnel and overhead reimbursement (percentage) | 1.00% | 2.00% |
Agreements and Transactions w_9
Agreements and Transactions with Related Parties - Loans Outstanding to Related Party (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction | ||
Maximum Loan Amount Authorized | $ 2,350,000,000 | |
Loans receivable, related party | 56,098,000 | $ 83,098,000 |
Accrued interest | 2,300,000 | 900,000 |
CWI | ||
Related Party Transaction | ||
Maximum Loan Amount Authorized | 65,802,000 | 100,000,000 |
Loans receivable, related party | $ 41,637,000 | 68,637,000 |
CWI | LIBOR | ||
Related Party Transaction | ||
Variable interest rate (percentage) | 1.00% | |
CESH I | ||
Related Party Transaction | ||
Maximum Loan Amount Authorized | $ 35,000,000 | |
Loans receivable, related party | $ 14,461,000 | 14,461,000 |
CESH I | LIBOR | ||
Related Party Transaction | ||
Variable interest rate (percentage) | 1.00% | |
CPA:18 - Global | ||
Related Party Transaction | ||
Maximum Loan Amount Authorized | $ 50,000,000 | |
Loans receivable, related party | 0 | 0 |
CWI 2 | ||
Related Party Transaction | ||
Maximum Loan Amount Authorized | 25,000,000 | |
Loans receivable, related party | $ 0 | $ 0 |
Land, Buildings and Improveme_3
Land, Buildings and Improvements and Assets Held for Sale - Narratives (Details) $ in Thousands | Sep. 28, 2018USD ($) | Jul. 19, 2018USD ($) | Jul. 17, 2018USD ($) | Jul. 13, 2018USD ($)property | Jun. 28, 2018USD ($)property | Jun. 05, 2018USD ($)property | Mar. 15, 2018USD ($)property | Feb. 21, 2018USD ($) | Aug. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Apr. 30, 2018USD ($)property | Jan. 31, 2018USD ($) | Sep. 30, 2018USD ($)propertytenant$ / € | Sep. 30, 2017USD ($)property | Sep. 30, 2018USD ($)propertytenant$ / € | Sep. 30, 2017USD ($)property | Dec. 31, 2017USD ($)property$ / € |
Real Estate Properties | |||||||||||||||||
Decrease in value of balance sheet item due to foreign currency translation | $ 8,102 | $ (28,979) | $ 29,401 | $ (71,686) | |||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | 530,114 | $ 6,000 | |||||||||||||||
Capitalized construction cost | $ 46,800 | $ 29,800 | |||||||||||||||
Number of construction projects | property | 3 | 5 | |||||||||||||||
Unfunded commitment | 119,700 | $ 119,700 | $ 147,900 | ||||||||||||||
Construction in progress placed into service | 74,800 | ||||||||||||||||
Carrying value of assets held for sale | $ 108,730 | $ 108,730 | 0 | ||||||||||||||
Properties disposed of by sale | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of properties sold | property | 3 | 5 | 10 | 11 | |||||||||||||
Asset held for sale, not in discontinued operations | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 9 | 9 | |||||||||||||||
Carrying value of assets held for sale | $ 108,730 | $ 108,730 | $ 0 | ||||||||||||||
Below-market rent | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 1,600 | ||||||||||||||||
Finite-lived intangible liabilities | 10 years 2 months 12 days | ||||||||||||||||
In-place lease | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 80,900 | ||||||||||||||||
Finite lived intangible assets useful life | 19 years 6 months | ||||||||||||||||
Above-market rent | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 5,700 | ||||||||||||||||
Finite lived intangible assets useful life | 14 years 2 months 12 days | ||||||||||||||||
Below-market ground lease | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 5,500 | ||||||||||||||||
Education facility in Houston, TX | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | $ 21,100 | ||||||||||||||||
Industrial facility in Zawiercie, Poland | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||
Construction in progress placed into service | $ 11,400 | ||||||||||||||||
Industrial facilities in Albemarle and Old Fort, NC | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | $ 2,200 | ||||||||||||||||
Industrial facility in Chicago, IL | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | $ 3,500 | ||||||||||||||||
Education facility in Windermere, FL | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | $ 15,100 | ||||||||||||||||
Retail facility in Kennesaw, GA | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | 5,500 | ||||||||||||||||
Industrial facility in Radomsko, Poland | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Construction in progress placed into service | $ 16,000 | ||||||||||||||||
Warehouse facility in Rotterdam, the Netherlands | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Funding commitment | 19,900 | $ 19,900 | |||||||||||||||
Land, buildings and improvements | Properties disposed of by sale | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of properties sold | property | 1 | 8 | |||||||||||||||
Decrease in carrying value of real estate | $ 102,600 | ||||||||||||||||
Operating Lease | |||||||||||||||||
Real Estate Properties | |||||||||||||||||
Decrease in value of balance sheet item due to foreign currency translation | 58,600 | ||||||||||||||||
Depreciation | 39,200 | $ 36,300 | 113,100 | $ 107,500 | |||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | 617,100 | ||||||||||||||||
Acquisition related costs | 14,300 | ||||||||||||||||
Liabilities assumed in real estate acquisition | $ 4,900 | $ 4,900 | |||||||||||||||
Number of real estate properties disposed of | property | 23 | ||||||||||||||||
Number of tenants | tenant | 1 | 1 | |||||||||||||||
Purchase option exercise price, value | $ 8,000 | ||||||||||||||||
Carrying value of assets held for sale | $ 6,000 | $ 6,000 | |||||||||||||||
Operating Lease | Asset held for sale, not in discontinued operations | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 3 | 3 | |||||||||||||||
Number of tenants | tenant | 1 | 1 | |||||||||||||||
Carrying value of assets held for sale | $ 14,600 | $ 14,600 | |||||||||||||||
Operating Lease | Sellersburg, Indiana | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 6,100 | ||||||||||||||||
Operating Lease | Properties in Wisconsin | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 79,100 | ||||||||||||||||
Operating Lease | Properties in Wisconsin | Warehouse | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 1 | ||||||||||||||||
Operating Lease | Properties in Wisconsin | Retail site | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||
Operating Lease | Manufacturing facility in Bessemer, Alabama | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 85,500 | ||||||||||||||||
Operating Lease | Various facilities in Denmark | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 186,600 | ||||||||||||||||
Deferred tax liability assumed in real estate acquisition | $ 33,200 | ||||||||||||||||
Operating Lease | Various facilities in Denmark | Logistics facility | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 14 | ||||||||||||||||
Operating Lease | Various facilities in Denmark | Office building | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 1 | ||||||||||||||||
Operating Lease | Various retail facilities in the Netherlands | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 177,800 | ||||||||||||||||
Number of real estate properties | property | 36 | ||||||||||||||||
Operating Lease | Manufacturing facility in Oostburg, Wisconsin | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 9,100 | ||||||||||||||||
Operating Lease | Office/Warehouse facility in Kampen the Netherlands | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 22,900 | ||||||||||||||||
Operating Lease | Logistics facility in Lisbon, Portugal | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 49,900 | ||||||||||||||||
Deferred tax liability assumed in real estate acquisition | $ 10,500 | ||||||||||||||||
Operating Lease | Land | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | 84,400 | ||||||||||||||||
Operating Lease | Building | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | 447,000 | ||||||||||||||||
Operating Lease | Net Lease Intangible | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Purchases of real estate | $ 90,600 | ||||||||||||||||
Hotel | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 1 | 1 | |||||||||||||||
Hotel | Land, buildings and improvements | Properties disposed of by sale | |||||||||||||||||
Investments in real estate | |||||||||||||||||
Number of real estate properties | property | 2 | ||||||||||||||||
Operating Properties | |||||||||||||||||
Real Estate Properties | |||||||||||||||||
Depreciation | $ 500 | $ 1,100 | $ 2,000 | $ 3,200 | |||||||||||||
Investments in real estate | |||||||||||||||||
Decrease in land, building and improvements | $ 33,200 | ||||||||||||||||
EUR | |||||||||||||||||
Real Estate Properties | |||||||||||||||||
Decrease in exchange rate | 3.50% | ||||||||||||||||
Foreign currency exchange rate | $ / € | 1.1576 | 1.1576 | 1.1993 |
Land, Buildings and Improveme_4
Land, Buildings and Improvements and Assets Held for Sale - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,485,056) | $ (1,329,613) |
Investments in real estate | 8,322,820 | 8,033,328 |
Operating Lease | ||
Real Estate Investment Property At Cost | ||
Land | 1,130,930 | 1,125,539 |
Buildings and improvements | 4,596,754 | 4,208,907 |
Real estate under construction | 24,430 | 39,772 |
Less: Accumulated depreciation | (699,584) | (613,543) |
Investments in real estate | 5,052,530 | 4,760,675 |
Operating Properties | ||
Real Estate Investment Property At Cost | ||
Land | 3,874 | 6,041 |
Buildings and improvements | 38,506 | 77,006 |
Less: Accumulated depreciation | (8,039) | (16,419) |
Investments in real estate | $ 34,341 | $ 66,628 |
Land, Buildings and Improveme_5
Land, Buildings and Improvements and Assets Held for Sale - Assets held for Sale, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Assets held for sale, net | $ 108,730 | $ 0 |
Asset held for sale, not in discontinued operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Assets held for sale, net | 108,730 | 0 |
Accumulated depreciation and amortization | (25,477) | 0 |
Asset held for sale, not in discontinued operations | Land, buildings and improvements | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Assets held for sale, net | 74,628 | 0 |
Asset held for sale, not in discontinued operations | In-place lease and other intangible assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Assets held for sale, net | 51,009 | 0 |
Asset held for sale, not in discontinued operations | Above-market rent intangible assets | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||
Assets held for sale, net | $ 8,570 | $ 0 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finance Receivables | |||||
Interest income from direct financing lease | $ 16,700 | $ 16,800 | $ 50,700 | $ 49,300 | |
Decrease in value of balance sheet item due to foreign currency translation | 8,102 | $ (28,979) | 29,401 | $ (71,686) | |
Decrease in direct financing lease | 5,100 | ||||
Notes receivable, net | $ 9,700 | $ 9,700 | $ 10,000 | ||
Financing receivable credit quality additional information | We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. | ||||
Financing receivable credit quality range of dates ratings updated | The credit quality evaluation of our finance receivables is updated quarterly. | ||||
CPA REITs | |||||
Finance Receivables | |||||
Deferred acquisitions fees payment period | 3 years | ||||
Direct financing lease | |||||
Finance Receivables | |||||
Decrease in value of balance sheet item due to foreign currency translation | $ 13,600 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Sep. 30, 2018USD ($)tenant | Dec. 31, 2017USD ($)tenant |
Credit Quality Of Finance Receivables | ||
Net investments in direct financing leases | $ 711,802 | $ 731,578 |
Internally Assigned Grade1-3 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 26 | 24 |
Net investments in direct financing leases | $ 628,744 | $ 608,101 |
Internally Assigned Grade 4 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 6 | 8 |
Net investments in direct financing leases | $ 83,058 | $ 123,477 |
Internally Assigned Grade 5 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 0 | 0 |
Net investments in direct financing leases | $ 0 | $ 0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net | |||||
Goodwill | $ 641,734 | $ 641,734 | $ 643,960 | ||
Amortization of intangible assets | 40,500 | $ 38,400 | 118,200 | $ 114,100 | |
Real Estate | |||||
Finite-Lived Intangible Assets, Net | |||||
Decrease in goodwill due to foreign currency translation adjustments | 2,300 | ||||
Goodwill | 578,100 | 578,100 | 580,400 | ||
Investment Management | |||||
Finite-Lived Intangible Assets, Net | |||||
Goodwill | $ 63,600 | $ 63,600 | $ 63,600 | ||
Minimum | |||||
Finite-Lived Intangible Assets, Net | |||||
Finite lived intangible assets useful life | 3 years | ||||
Maximum | |||||
Finite-Lived Intangible Assets, Net | |||||
Finite lived intangible assets useful life | 40 years | ||||
Maximum | Below-market ground lease | |||||
Finite-Lived Intangible Assets, Net | |||||
Finite lived intangible assets useful life | 99 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortizable Intangible Assets | ||
Less: accumulated amortization | $ (788,402) | $ (707,914) |
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 648,105 | 644,945 |
Total intangible assets, gross | 2,490,698 | 2,521,040 |
Total intangible assets, net | 1,702,296 | 1,813,126 |
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (146,706) | (148,949) |
Less: accumulated amortization | 57,519 | 51,703 |
Net amortizable intangible liabilities | (89,187) | (97,246) |
Indefinite Lived Intangible Liabilities | ||
Total intangible liabilities, gross | (163,417) | (165,660) |
Total intangible liabilities, net | (105,898) | (113,957) |
Below-market purchase option | ||
Indefinite Lived Intangible Liabilities | ||
Indefinite-lived intangible liabilities | (16,711) | (16,711) |
Below-market rent | ||
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (133,547) | (135,704) |
Less: accumulated amortization | 54,015 | 48,657 |
Net amortizable intangible liabilities | (79,532) | (87,047) |
Above-market ground lease | ||
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (13,159) | (13,245) |
Less: accumulated amortization | 3,504 | 3,046 |
Net amortizable intangible liabilities | (9,655) | (10,199) |
Goodwill | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 641,734 | 643,960 |
Below-market ground lease | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 6,371 | 985 |
Contracts including internal software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 22,789 | 22,624 |
Less: accumulated amortization | (10,969) | (8,263) |
Amortizable intangible assets | 11,820 | 14,361 |
Internal-use software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 18,814 | 18,649 |
Less: accumulated amortization | (9,972) | (7,862) |
Amortizable intangible assets | 8,842 | 10,787 |
Trade name | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 3,975 | 3,975 |
Less: accumulated amortization | (997) | (401) |
Amortizable intangible assets | 2,978 | 3,574 |
Lease intangibles | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 1,819,804 | 1,853,471 |
Less: accumulated amortization | (777,433) | (699,651) |
Amortizable intangible assets | 1,042,371 | 1,153,820 |
In-place lease | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 1,175,176 | 1,194,055 |
Less: accumulated amortization | (460,774) | (421,686) |
Amortizable intangible assets | 714,402 | 772,369 |
Above-market rent | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 626,390 | 640,480 |
Less: accumulated amortization | (314,487) | (276,110) |
Amortizable intangible assets | 311,903 | 364,370 |
Below-market ground lease | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 18,238 | 18,936 |
Less: accumulated amortization | (2,172) | (1,855) |
Amortizable intangible assets | $ 16,066 | $ 17,081 |
Equity Investments in the Man_3
Equity Investments in the Managed Programs and Real Estate - Narratives (Details) | Jul. 30, 2017 | Aug. 31, 2018USD ($)property | Jan. 31, 2018USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | $ 47,173,000 | $ 49,365,000 | ||||||
Equity investments in real estate | $ 366,306,000 | 366,306,000 | $ 341,457,000 | |||||
Payments to acquire equity method investments | 715,000 | 1,291,000 | ||||||
Gain on sale of real estate, net of tax | 343,000 | $ 19,257,000 | 18,987,000 | 22,732,000 | ||||
Real Estate | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 136,014,000 | 136,014,000 | 140,049,000 | |||||
Real Estate | Unconsolidated Real Estate Investment | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 15,400,000 | 12,100,000 | ||||||
Real Estate | Wagon Automotive GmbH | ||||||||
Investments in REITs | ||||||||
Proceeds from sales of real estate | $ 2,600,000 | |||||||
Gain on sale of real estate, net of tax | $ 1,500,000 | |||||||
CESH I | Gross proceeds | ||||||||
Investments in REITs | ||||||||
Advisory fee rate | 2.50% | |||||||
CPA: 17 - Global | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 7,500,000 | 6,100,000 | ||||||
Equity investments in real estate | 130,145,000 | 130,145,000 | 125,676,000 | |||||
CPA: 17 - Global | Real Estate | The New York Times Company | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 68,945,000 | 68,945,000 | 69,401,000 | |||||
Payments to acquire equity method investments | $ 250,000,000 | |||||||
CPA: 17 - Global | Real Estate | Jumbo Logestiek Vastgoed B.V. | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 9,430,000 | 9,430,000 | 10,661,000 | |||||
Mortgage debt tenants in common | 72,500,000 | 72,500,000 | ||||||
Pro rata share mortgage debt on tenancy in common | 10,900,000 | 10,900,000 | ||||||
CPA: 17 - Global | Real Estate | Wagon Automotive GmbH | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 6,016,000 | 6,016,000 | 8,386,000 | |||||
Number of properties sold | property | 1 | |||||||
Number of real estate properties | property | 2 | |||||||
Proceeds from sales of real estate | $ 7,700,000 | |||||||
Gain on sale of real estate, net of tax | $ 4,600,000 | |||||||
CPA: 17 - Global | Real Estate | Wanbishi Archives Co. Ltd. | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 1,043,000 | 1,043,000 | 334,000 | |||||
Contributions to equity method investments | $ 700,000 | |||||||
CPA:17 - Global operating partnership | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 18,600,000 | 19,200,000 | ||||||
Equity investments in real estate | 0 | 0 | 0 | |||||
CPA:18 - Global | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 1,900,000 | 1,200,000 | ||||||
Equity investments in real estate | $ 36,810,000 | $ 36,810,000 | 28,433,000 | |||||
CPA:18 - Global | Class A | ||||||||
Investments in REITs | ||||||||
Asset management fees receivable, shares | shares | 120,831 | 120,831 | ||||||
CPA:18 - Global operating partnership | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | $ 6,400,000 | 6,100,000 | ||||||
Equity investments in real estate | $ 209,000 | 209,000 | 209,000 | |||||
CWI | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | $ 1,400,000 | 800,000 | ||||||
Asset management fees receivable, shares | shares | 113,096 | 113,096 | ||||||
Equity investments in real estate | $ 36,026,000 | $ 36,026,000 | 26,810,000 | |||||
CWI operating partnership | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 3,500,000 | 5,700,000 | ||||||
Equity investments in real estate | 186,000 | 186,000 | 186,000 | |||||
CWI 2 | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 800,000 | 200,000 | ||||||
Equity investments in real estate | $ 23,219,000 | $ 23,219,000 | 16,495,000 | |||||
CWI 2 | Class A | ||||||||
Investments in REITs | ||||||||
Asset management fees receivable, shares | shares | 78,214 | 78,214 | ||||||
CWI 2 operating partnership | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | $ 3,900,000 | 3,500,000 | ||||||
Equity investments in real estate | $ 300,000 | 300,000 | 300,000 | |||||
CESH I | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | 0 | 0 | ||||||
Equity investments in real estate | 3,397,000 | 3,397,000 | 3,299,000 | |||||
CCIF | ||||||||
Investments in REITs | ||||||||
Distributions of earnings from equity method investments | $ 900,000 | |||||||
CCIF | Other assets, net | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 23,700,000 | 23,700,000 | 23,300,000 | |||||
Managed Programs | ||||||||
Investments in REITs | ||||||||
Equity investments in real estate | 230,292,000 | 230,292,000 | 201,408,000 | |||||
Aggregate unamortized basis difference on equity investments | $ 69,400,000 | $ 69,400,000 | $ 55,200,000 |
Equity Investments in the Man_4
Equity Investments in the Managed Programs and Real Estate - Summary of Earnings from Equity Method Investments in the Managed Programs and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Equity Method Investments | ||||
Distributions of Available Cash (Note 3) | $ 46,246 | $ 47,820 | ||
Proportionate share of equity in earnings of equity investments in the Managed Programs | $ 18,363 | $ 16,318 | 46,246 | 47,820 |
Managed Programs | ||||
Schedule Of Equity Method Investments | ||||
Distributions of Available Cash (Note 3) | 13,135 | 12,047 | 32,413 | 34,568 |
Proportionate share of equity in earnings of equity investments in the Managed Programs | 1,136 | 886 | 4,166 | 4,688 |
Amortization of basis differences on equity investments | (607) | (355) | (1,919) | (969) |
Total equity in earnings of equity method investments in the Managed Programs | 13,664 | 12,578 | 34,660 | 38,287 |
Jointly Owned Investments | ||||
Schedule Of Equity Method Investments | ||||
Proportionate share of equity in earnings of equity investments in the Managed Programs | 5,264 | 4,244 | 13,251 | 11,404 |
Amortization of basis differences on equity investments | (565) | (504) | (1,665) | (1,871) |
Investment in real estate | ||||
Schedule Of Equity Method Investments | ||||
Proportionate share of equity in earnings of equity investments in the Managed Programs | $ 4,699 | $ 3,740 | $ 11,586 | $ 9,533 |
Equity Investments in the Man_5
Equity Investments in the Managed Programs and Real Estate - Summary of Investments in Managed Programs (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in Programs | ||
Equity investments in real estate | $ 366,306 | $ 341,457 |
CPA: 17 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 4.572% | 4.186% |
Equity investments in real estate | $ 130,145 | $ 125,676 |
CPA:17 - Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.009% | 0.009% |
Equity investments in real estate | $ 0 | $ 0 |
CPA:18 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.228% | 2.54% |
Equity investments in real estate | $ 36,810 | $ 28,433 |
CPA:18 - Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.034% | 0.034% |
Equity investments in real estate | $ 209 | $ 209 |
CWI | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.83% | 2.119% |
Equity investments in real estate | $ 36,026 | $ 26,810 |
CWI operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 186 | $ 186 |
CWI 2 | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.554% | 1.786% |
Equity investments in real estate | $ 23,219 | $ 16,495 |
CWI 2 operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 300 | $ 300 |
CESH I | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.43% | 2.43% |
Equity investments in real estate | $ 3,397 | $ 3,299 |
Managed Programs | ||
Investments in Programs | ||
Equity investments in real estate | $ 230,292 | $ 201,408 |
Equity Investments in the Man_6
Equity Investments in the Managed Programs and Real Estate - Equity Method Investments Excluding the Managed Programs (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments in Programs | ||
Equity investments in real estate | $ 366,306 | $ 341,457 |
CPA: 17 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 4.572% | 4.186% |
Equity investments in real estate | $ 130,145 | $ 125,676 |
Real Estate | ||
Investments in Programs | ||
Equity investments in real estate | 136,014 | 140,049 |
Real Estate | Third Party | Beach House JV, LLC | ||
Investments in Programs | ||
Equity investments in real estate | $ 15,105 | 15,105 |
Real Estate | CPA: 17 - Global | The New York Times Company | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 45.00% | |
Equity investments in real estate | $ 68,945 | 69,401 |
Real Estate | CPA: 17 - Global | Frontier Spinning Mills, Inc. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 40.00% | |
Equity investments in real estate | $ 24,074 | 24,153 |
Real Estate | CPA: 17 - Global | ALSO Actebis GmbH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 30.00% | |
Equity investments in real estate | $ 11,401 | 12,009 |
Real Estate | CPA: 17 - Global | Jumbo Logestiek Vastgoed B.V. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 15.00% | |
Equity investments in real estate | $ 9,430 | 10,661 |
Real Estate | CPA: 17 - Global | Wagon Automotive GmbH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 33.00% | |
Equity investments in real estate | $ 6,016 | 8,386 |
Real Estate | CPA: 17 - Global | Wanbishi Archives Co. Ltd. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.00% | |
Equity investments in real estate | $ 1,043 | $ 334 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Unamortized discount | $ 14,103 | $ 14,103 | |||
Impairment charges | $ 0 | $ 0 | 4,790 | $ 0 | |
Impaired properties | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Impairment charges | $ 4,800 | ||||
Number of real estate properties | property | 2 | 2 | |||
Bankrupt tenants property | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Impairment charges | $ 3,800 | ||||
Fair value of impaired real estate | $ 3,900 | 3,900 | |||
Vacant property | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Impairment charges | 1,000 | ||||
Unsecured senior notes | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Unamortized discount | 12,200 | 12,200 | $ 9,900 | ||
Level 2 | Carrying Value | Unsecured senior notes | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Unamortized debt issuance cost | 16,700 | 16,700 | 14,700 | ||
Unamortized discount | 12,200 | 12,200 | 9,900 | ||
Level 3 | Carrying Value | Non-Recourse Debt | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Unamortized discount | 1,900 | 1,900 | 1,700 | ||
Level 3 | Carrying Value | Non recourse mortgage | |||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||||
Unamortized debt issuance cost | $ 900 | $ 900 | $ 1,000 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Level 2 | Carrying Value | Unsecured senior notes | ||
Liabilities: | ||
Debt instrument, fair value | $ 3,007,453 | $ 2,474,661 |
Level 2 | Fair Value | Unsecured senior notes | ||
Liabilities: | ||
Debt instrument, fair value | 3,055,120 | 2,588,032 |
Level 3 | Carrying Value | ||
Liabilities: | ||
Debt instrument, fair value | 959,951 | 1,185,477 |
Level 3 | Carrying Value | Notes Receivable | ||
Assets: | ||
Receivable, fair value | 9,651 | 9,971 |
Level 3 | Fair Value | ||
Liabilities: | ||
Debt instrument, fair value | 957,332 | 1,196,399 |
Level 3 | Fair Value | Notes Receivable | ||
Assets: | ||
Receivable, fair value | $ 9,503 | $ 9,639 |
Risk Management and Use of De_3
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Summary of Derivative Instruments | ||||||
Net collateral posted for derivatives | $ 0 | $ 0 | $ 0 | |||
Derivative, remaining maturity | 77 months | |||||
Total credit exposure on derivatives | 21,200,000 | $ 21,200,000 | ||||
Derivatives, net liability position | 3,400,000 | 3,400,000 | 8,100,000 | |||
Aggregate termination value for immediate settlement | 3,500,000 | 3,500,000 | $ 8,400,000 | |||
Other comprehensive income foreign currency gain (loss) | 10,500,000 | $ (45,400,000) | 55,000,000 | $ (116,800,000) | ||
Unsecured senior notes | ||||||
Summary of Derivative Instruments | ||||||
Principal Amount | $ 3,000,000,000 | $ 3,000,000,000 | ||||
Unsecured senior notes | 2.0% Senior Notes due 2023 | ||||||
Summary of Derivative Instruments | ||||||
Principal Amount | € | € 500,000,000 | |||||
Coupon rate (percentage) | 2.00% | 2.00% | 2.00% | |||
Unsecured senior notes | 2.25% Senior Notes due 2024 | ||||||
Summary of Derivative Instruments | ||||||
Principal Amount | € | € 500,000,000 | |||||
Coupon rate (percentage) | 2.25% | 2.25% | 2.25% | |||
Unsecured senior notes | 2.125% Senior Notes due 2027 | ||||||
Summary of Derivative Instruments | ||||||
Principal Amount | € | € 500,000,000 | |||||
Coupon rate (percentage) | 2.125% | 2.125% | 2.125% | |||
Individual Counterparty | ||||||
Summary of Derivative Instruments | ||||||
Total credit exposure on derivatives | $ 15,300,000 | $ 15,300,000 | ||||
Interest expense | ||||||
Summary of Derivative Instruments | ||||||
Estimated amount reclassified from OCI to income, derivatives | (300,000) | |||||
Other gains | ||||||
Summary of Derivative Instruments | ||||||
Estimated amount reclassified from OCI to income, derivatives | $ 10,000,000 |
Risk Management and Use of De_4
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 27,268 | $ 21,915 |
Liability derivatives, fair value | (3,331) | (7,913) |
Designated as Hedging Instrument | Foreign currency forward contracts | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 15,486 | 12,737 |
Designated as Hedging Instrument | Foreign currency collars | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 6,392 | 4,931 |
Designated as Hedging Instrument | Foreign currency collars | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (3,167) | (6,805) |
Designated as Hedging Instrument | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 1,500 | 523 |
Designated as Hedging Instrument | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (164) | (1,108) |
Designated as Hedging Instrument | Interest rate cap | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 4 | 20 |
Not Designated as Hedging Instrument | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 0 | 19 |
Not Designated as Hedging Instrument | Stock warrants | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 3,886 | $ 3,685 |
Risk Management and Use of De_5
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | $ 1,824 | $ (11,088) | $ 9,541 | $ (37,018) |
Derivatives in Cash Flow Hedging Relationships | Equity method investments | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | 100 | (400) | 300 | (900) |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | 1,267 | (5,398) | 5,117 | (16,002) |
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (786) | (4,752) | (644) | (16,422) |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | 244 | 250 | 1,664 | 779 |
Derivatives in Cash Flow Hedging Relationships | Interest rate cap | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (1) | (17) | (12) | (26) |
Derivatives in Net Investment Hedging Relationships | Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | $ 1,100 | $ (1,171) | $ 3,416 | $ (5,347) |
Risk Management and Use of De_6
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Reclassified From OCI (Details) - Derivatives in Cash Flow Hedging Relationships - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | $ 2,423 | $ 1,903 | $ 5,550 | $ 7,466 |
Foreign currency forward contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | 1,752 | 1,454 | 4,556 | 5,336 |
Foreign currency collars | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | 681 | 735 | 1,255 | 3,154 |
Interest rate swaps and caps | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income (Effective Portion) | $ (10) | $ (286) | $ (261) | $ (1,024) |
Risk Management and Use of De_7
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 168 | $ 18 | $ 763 | $ (558) |
Not Designated as Hedging Instrument | Other income and (expenses) | Foreign currency collars | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 135 | (225) | 455 | (718) |
Not Designated as Hedging Instrument | Other income and (expenses) | Stock warrants | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | 134 | 201 | (201) |
Not Designated as Hedging Instrument | Other income and (expenses) | Foreign currency forward contracts | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | (19) | (125) | (19) |
Not Designated as Hedging Instrument | Other income and (expenses) | Interest rate swaps | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | 2 | 7 | 11 |
Cash Flow Hedging | Other income and (expenses) | Foreign currency collars | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | (3) | (13) | (24) | (11) |
Cash Flow Hedging | Other income and (expenses) | Foreign currency forward contracts | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | (14) | 0 | (75) |
Cash Flow Hedging | Interest expense | Interest rate swaps | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 36 | $ 153 | $ 249 | $ 455 |
Risk Management and Use of De_8
Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) € in Thousands, $ in Thousands | Sep. 30, 2018USD ($)instrument | Sep. 30, 2018EUR (€)instrument |
Derivative Disclosure | ||
Fair value | $ 1,340 | |
Cash Flow Hedging | Interest rate swap | USD | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 9 | 9 |
Notional Amount | $ 86,863 | |
Fair value | $ 1,336 | |
Cash Flow Hedging | Interest rate cap | EUR | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 1 | 1 |
Notional Amount | € | € 30,050 | |
Fair value | $ 4 |
Risk Management and Use of De_9
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | Sep. 30, 2018USD ($)instrument | Sep. 30, 2018EUR (€)instrument | Sep. 30, 2018GBP (£)instrument | Sep. 30, 2018AUD ($)instrument |
Derivative Disclosure | ||||
Fair value, foreign currency derivatives | $ 18,711 | |||
Cash Flow Hedging | Forward contracts | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 13 | 13 | 13 | 13 |
Notional Amount | € | € 47,800 | |||
Fair value, foreign currency derivatives | $ 9,980 | |||
Cash Flow Hedging | Forward contracts | GBP | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 1 | 1 | 1 | 1 |
Notional Amount | £ | £ 540 | |||
Fair value, foreign currency derivatives | $ 148 | |||
Cash Flow Hedging | Forward contracts | AUD | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 5 | 5 | 5 | 5 |
Notional Amount | $ 6,385 | |||
Fair value, foreign currency derivatives | $ 541 | |||
Cash Flow Hedging | Foreign currency collars | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 31 | 31 | 31 | 31 |
Notional Amount | € | € 101,275 | |||
Fair value, foreign currency derivatives | $ (1,390) | |||
Cash Flow Hedging | Foreign currency collars | GBP | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 31 | 31 | 31 | 31 |
Notional Amount | £ | £ 39,000 | |||
Fair value, foreign currency derivatives | $ 4,615 | |||
Derivatives in Net Investment Hedging Relationships | Forward contracts | AUD | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 2 | 2 | 2 | 2 |
Notional Amount | $ 68,999 | |||
Fair value, foreign currency derivatives | $ 4,817 |
Debt - Narratives (Details)
Debt - Narratives (Details) | Oct. 09, 2018USD ($) | Mar. 07, 2018USD ($) | Mar. 07, 2018EUR (€) | Feb. 22, 2017USD ($)option | Jan. 31, 2017USD ($)loan | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | Feb. 22, 2017EUR (€)option |
Senior Unsecured Credit Facility | ||||||||||||
Line of credit, maximum borrowing amount | $ 2,350,000,000 | $ 2,350,000,000 | ||||||||||
Repayments of line of credit | $ 904,868,000 | $ 1,558,091,000 | ||||||||||
Non Recourse Mortgage | ||||||||||||
Debt instrument maturity date, range start | Oct. 1, 2018 | |||||||||||
Debt instrument maturity date, range end | Jun. 1, 2027 | |||||||||||
Prepayments of mortgage principal | $ 164,908,000 | 159,204,000 | ||||||||||
Repayments of non recourse mortgage loan | 59,048,000 | 303,538,000 | ||||||||||
Decrease in value of balance sheet item due to foreign currency translation | 8,102,000 | $ (28,979,000) | 29,401,000 | (71,686,000) | ||||||||
Unamortized discount | 14,103,000 | 14,103,000 | ||||||||||
Merged Entities | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Unamortized discount | 1,900,000 | $ 1,900,000 | ||||||||||
Fixed interest rate | Minimum | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Mortgage loan on real estate, minimum interest rate | 2.00% | |||||||||||
Fixed interest rate | Maximum | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Mortgage loan on real estate, minimum interest rate | 7.80% | |||||||||||
Variable interest rate | Minimum | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Mortgage loan on real estate, minimum interest rate | 3.30% | |||||||||||
Variable interest rate | Maximum | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Mortgage loan on real estate, minimum interest rate | 6.90% | |||||||||||
Euro Senior Note | Unsecured senior notes | Subsequent event | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Coupon rate (percentage) | 2.25% | |||||||||||
Senior Unsecured Notes | ||||||||||||
Principal Amount | $ 500,000,000 | |||||||||||
Price of par value (percentage) | 99.252% | |||||||||||
Debt instrument, term | 7 years 6 months | |||||||||||
Revolving Credit Facility | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Line of credit, maximum borrowing amount | $ 1,500,000,000 | |||||||||||
Number of extension options | option | 2 | 2 | ||||||||||
Option extension term | 6 months | |||||||||||
Line of credit, amount available in foreign currency | 1,000,000,000 | $ 1,000,000,000 | ||||||||||
Amount available for swing line loan | 75,000,000 | 75,000,000 | ||||||||||
Amount available for letters of credit | 50,000,000 | 50,000,000 | ||||||||||
Line of credit facility, available | 803,600,000 | $ 803,600,000 | ||||||||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | |||||||||||
Term Loan | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Line of credit, maximum borrowing amount | € | € 236,300,000 | |||||||||||
Repayments of line of credit | $ 403,600,000 | € 325,000,000 | ||||||||||
Noncash loss on extinguishment of debt | $ 1,400,000 | |||||||||||
Delayed Draw term loan | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Line of credit, maximum borrowing amount | $ 100,000,000 | |||||||||||
Unsecured senior notes | ||||||||||||
Senior Unsecured Notes | ||||||||||||
Principal Amount | 3,000,000,000 | $ 3,000,000,000 | ||||||||||
Non Recourse Mortgage | ||||||||||||
Unamortized discount | $ 12,200,000 | $ 12,200,000 | $ 9,900,000 | |||||||||
Unsecured senior notes | Government bond yield | Minimum | ||||||||||||
Senior Unsecured Notes | ||||||||||||
Variable interest rate (percentage) | 0.30% | |||||||||||
Unsecured senior notes | Government bond yield | Maximum | ||||||||||||
Senior Unsecured Notes | ||||||||||||
Variable interest rate (percentage) | 0.35% | |||||||||||
Unsecured senior notes | 2.125% Senior Notes due 2027 | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Coupon rate (percentage) | 2.125% | 2.125% | 2.125% | |||||||||
Senior Unsecured Notes | ||||||||||||
Principal Amount | € | € 500,000,000 | |||||||||||
Issue Date | Mar. 6, 2018 | |||||||||||
Price of par value (percentage) | 99.324% | 99.324% | 99.324% | |||||||||
Debt instrument, term | 9 years | |||||||||||
Maturity date | Apr. 15, 2027 | |||||||||||
Non-Recourse Debt | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Prepayments of mortgage principal | $ 164,900,000 | 157,400,000 | ||||||||||
Repayments of non recourse mortgage loan | $ 12,500,000 | $ 38,400,000 | ||||||||||
Weighted average interest rate | 2.80% | 5.50% | 2.80% | 5.50% | 2.80% | |||||||
Decrease in value of balance sheet item due to foreign currency translation | $ 73,100,000 | |||||||||||
Secured Debt | International Properties | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Repayments of non recourse mortgage loan | $ 243,800,000 | |||||||||||
Loans repaid, count | loan | 2 | |||||||||||
Secured Debt | International Properties | Noncontrolling interests | ||||||||||||
Non Recourse Mortgage | ||||||||||||
Repayments of non recourse mortgage loan | $ 90,300,000 | $ 22,600,000 | $ 19,300,000 | |||||||||
Weighted average interest rate | 5.40% |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Credit Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Capital Lease Obligations | ||
Debt | $ 696,380 | $ 606,548 |
Deferred financing costs | $ 17,638 | |
Standard & Poor's, BBB Rating | ||
Capital Lease Obligations | ||
Debt instrument, credit rating | BBB | |
Moody's, Baa2 Rating | ||
Capital Lease Obligations | ||
Debt instrument, credit rating | Baa2 | |
Unsecured revolving credit facility | ||
Capital Lease Obligations | ||
Debt | $ 696,380 | 216,775 |
Unsecured revolving credit facility | USD | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2021 | |
Debt | $ 247,000 | 105,000 |
Unsecured revolving credit facility | USD | LIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.00% | |
Unsecured revolving credit facility | EUR | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2021 | |
Debt | $ 449,380 | 111,775 |
Unsecured revolving credit facility | EUR | EURIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.00% | |
Term Loan | ||
Capital Lease Obligations | ||
Debt | $ 0 | 389,773 |
Unamortized discount | 1,200 | |
Deferred financing costs | 200 | |
Term Loan | EUR | ||
Capital Lease Obligations | ||
Debt | 0 | 283,425 |
Delayed Draw term loan | ||
Capital Lease Obligations | ||
Debt | $ 0 | $ 106,348 |
Debt - Summary of Senior Unse_2
Debt - Summary of Senior Unsecured Notes (Details) | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Dec. 31, 2017USD ($) | |
Senior Unsecured Notes | |||
Senior unsecured notes, net | $ 3,007,453,000 | $ 2,474,661,000 | |
Deferred financing costs | 17,638,000 | ||
Unamortized discount, net | 14,103,000 | ||
Senior Unsecured Notes | |||
Senior Unsecured Notes | |||
Principal Amount | 3,000,000,000 | ||
Senior unsecured notes, net | 3,036,400,000 | 2,499,400,000 | |
Deferred financing costs | 16,700,000 | 14,700,000 | |
Unamortized discount, net | $ 12,200,000 | 9,900,000 | |
Senior Unsecured Notes | 2.0% Senior Notes due 2023 | |||
Senior Unsecured Notes | |||
Issue Date | Jan. 21, 2015 | ||
Principal Amount | € | € 500,000,000 | ||
Price of Par Value (percentage) | 99.22% | 99.22% | |
Discount | $ 4,600,000 | ||
Effective Interest Rate | 2.107% | 2.107% | |
Coupon rate (percentage) | 2.00% | 2.00% | |
Maturity Date | Jan. 20, 2023 | ||
Senior unsecured notes, net | $ 578,800,000 | 599,700,000 | |
Senior Unsecured Notes | 4.6% Senior Notes due 2024 | |||
Senior Unsecured Notes | |||
Issue Date | Mar. 14, 2014 | ||
Principal Amount | $ 500,000,000 | ||
Price of Par Value (percentage) | 99.639% | 99.639% | |
Discount | $ 1,800,000 | ||
Effective Interest Rate | 4.645% | 4.645% | |
Coupon rate (percentage) | 4.60% | 4.60% | |
Maturity Date | Apr. 1, 2024 | ||
Senior unsecured notes, net | $ 500,000,000 | 500,000,000 | |
Senior Unsecured Notes | 2.25% Senior Notes due 2024 | |||
Senior Unsecured Notes | |||
Issue Date | Jan. 19, 2017 | ||
Principal Amount | € | € 500,000,000 | ||
Price of Par Value (percentage) | 99.448% | 99.448% | |
Discount | $ 2,900,000 | ||
Effective Interest Rate | 2.332% | 2.332% | |
Coupon rate (percentage) | 2.25% | 2.25% | |
Maturity Date | Jul. 19, 2024 | ||
Senior unsecured notes, net | $ 578,800,000 | 599,700,000 | |
Senior Unsecured Notes | 4.0% Senior Notes due 2025 | |||
Senior Unsecured Notes | |||
Issue Date | Jan. 26, 2015 | ||
Principal Amount | $ 450,000,000 | ||
Price of Par Value (percentage) | 99.372% | 99.372% | |
Discount | $ 2,800,000 | ||
Effective Interest Rate | 4.077% | 4.077% | |
Coupon rate (percentage) | 4.00% | 4.00% | |
Maturity Date | Feb. 1, 2025 | ||
Senior unsecured notes, net | $ 450,000,000 | 450,000,000 | |
Senior Unsecured Notes | 4.25% Senior Notes due 2026 | |||
Senior Unsecured Notes | |||
Issue Date | Sep. 12, 2016 | ||
Principal Amount | $ 350,000,000 | ||
Price of Par Value (percentage) | 99.682% | 99.682% | |
Discount | $ 1,100,000 | ||
Effective Interest Rate | 4.29% | 4.29% | |
Coupon rate (percentage) | 4.25% | 4.25% | |
Maturity Date | Oct. 1, 2026 | ||
Senior unsecured notes, net | $ 350,000,000 | 350,000,000 | |
Senior Unsecured Notes | 2.125% Senior Notes due 2027 | |||
Senior Unsecured Notes | |||
Issue Date | Mar. 6, 2018 | ||
Principal Amount | € | € 500,000,000 | ||
Price of Par Value (percentage) | 99.324% | 99.324% | |
Discount | $ 4,200,000 | ||
Effective Interest Rate | 2.208% | 2.208% | |
Coupon rate (percentage) | 2.125% | 2.125% | |
Maturity Date | Apr. 15, 2027 | ||
Senior unsecured notes, net | $ 578,800,000 | $ 0 | |
Deferred financing costs | $ 4,300,000 |
Debt - Scheduled Debt Principal
Debt - Scheduled Debt Principal Payments (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Long-term Debt, by Maturity | |
2018 (remainder) | $ 32,885 |
2,019 | 91,760 |
2,020 | 220,661 |
2,021 | 855,589 |
2,022 | 240,696 |
Thereafter through 2027 | 3,253,934 |
Long term debt before unamortized discount | 4,695,525 |
Unamortized deferred financing costs | (17,638) |
Unamortized discount, net | (14,103) |
Total scheduled debt principal payments | $ 4,663,784 |
Restructuring and Other Compe_2
Restructuring and Other Compensation - Narratives (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Restructuring and Related Activities [Abstract] | |
Severance and benefit costs | $ 8.2 |
Other restructuring costs | $ 0.9 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Narratives (Details) | May 26, 2017USD ($) | May 24, 2017EUR (€) | Mar. 31, 2016USD ($)shares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Mar. 01, 2017USD ($) | Oct. 01, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Stock-based compensation expense | $ 14,392,000 | $ 14,649,000 | ||||||||
Fair value assumptions expected dividend rate (percent) | 0.00% | |||||||||
Fair value of vested stock | $ 16,300,000 | |||||||||
Deferred compensation obligation | $ 36,159,000 | 36,159,000 | $ 46,656,000 | |||||||
Proceed from issuance of stock | 22,857,000 | |||||||||
Acquisition of noncontrolling interest | 0 | |||||||||
Redeemable Noncontrolling Interest | ||||||||||
Distributions to noncontrolling interests | 15,166,000 | $ 16,910,000 | ||||||||
Redeemable noncontrolling interest | $ 1,300,000 | $ 1,300,000 | $ 965,000 | |||||||
Distributions Declared | ||||||||||
Dividends declared per share (in dollars per share) | $ / shares | $ 1.025 | $ 1.005 | $ 3.06 | $ 3 | ||||||
Dividend payable date | Oct. 15, 2018 | |||||||||
Officers | WPCI | ||||||||||
Redeemable Noncontrolling Interest | ||||||||||
Minority interest ownership interest (percent) | 7.70% | |||||||||
International Properties | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Increase in ownership percentage | 25.00% | |||||||||
Adjustments to additional paid in capital | € | € 2 | |||||||||
Cumulative ownership percentage | 100.00% | |||||||||
Gain on sale of real estate, net of tax (less than) | $ 100,000 | |||||||||
Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Shares issued (shares) | shares | 345,253 | |||||||||
Proceed from issuance of stock | $ 1,000 | |||||||||
Redeemable Noncontrolling Interest | ||||||||||
Shares issued to a third party in connection with the redemption of a redeemable noncontrolling interest (shares) | shares | 217,011 | |||||||||
Additional Paid-in Capital | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Proceed from issuance of stock | 22,856,000 | |||||||||
Acquisition of noncontrolling interest | $ (1,845,000) | |||||||||
Redeemable Noncontrolling Interest | ||||||||||
Adjustments to additional paid in capital | $ (335,000) | |||||||||
Redeemable Noncontrolling Interest | ||||||||||
Redeemable Noncontrolling Interest | ||||||||||
Distributions to noncontrolling interests | $ 13,400,000 | |||||||||
ATM | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Common stock maximum offering value | $ 376,600,000 | $ 376,600,000 | $ 400,000,000 | |||||||
ATM | Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Shares issued (shares) | shares | 0 | 15,500 | 0 | 345,253 | ||||||
Weighted average share price (usd per share) | $ / shares | $ 67.05 | $ 67.78 | ||||||||
Proceed from issuance of stock | $ 900,000 | $ 22,800,000 | ||||||||
Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Risk free interest rate (percent) | 2.20% | |||||||||
Fair value assumptions expected volatility rate (percent) | 17.20% | |||||||||
Restricted Stock, RSU, and PSU | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Stock-based compensation expense | $ 4,200,000 | |||||||||
Performance Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Performance period (in years) | 3 years | |||||||||
Performance Stock Units | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Shares to be vested (shares) | shares | 0 | |||||||||
Performance Stock Units | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Shares to be vested (shares) | shares | 3 | |||||||||
Long Term Incentive Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||
Deferred compensation arrangement with individual, common stock reserved for future issuance (shares) | shares | 873,671 | 873,671 | 1,140,632 | |||||||
Deferred compensation obligation | $ 36,200,000 | $ 36,200,000 | $ 46,700,000 | |||||||
Unrecognized stock based compensation expense | $ 21,400,000 | $ 21,400,000 | ||||||||
Weighted-average remaining term | 1 year 10 months 17 days |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Restricted and Conditional Awards (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Restricted Stock And RSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested, beginning balance - shares | shares | 324,339 |
Granted - shares | shares | 137,519 |
Vested - shares | shares | (179,412) |
Forfeited - shares | shares | (3,079) |
Adjustments - shares | shares | 0 |
Nonvested, ending balance - shares | shares | 279,367 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 61.43 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 64.50 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 62.22 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 61.71 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 62.43 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested, beginning balance - shares | shares | 281,299 |
Granted - shares | shares | 75,864 |
Vested - shares | shares | (66,632) |
Forfeited - shares | shares | (3,098) |
Adjustments - shares | shares | 40,308 |
Nonvested, ending balance - shares | shares | 327,741 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 74.57 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 75.81 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 76.96 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 76.49 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 75.11 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 78.99 |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share Reconciliation | ||||
Net Income Attributable to W. P. Carey | $ 77,348 | $ 80,278 | $ 218,303 | $ 202,080 |
Net income attributable to nonvested participating RSUs and RSAs | (99) | (239) | (279) | (600) |
Net income — basic and diluted | $ 77,249 | $ 80,039 | $ 218,024 | $ 201,480 |
Weighted-average shares outstanding – basic (shares) | 108,073,969 | 108,019,292 | 108,063,826 | 107,751,672 |
Effect of dilutive securities (shares) | 209,697 | 124,402 | 190,015 | 195,818 |
Weighted-average shares outstanding – diluted (shares) | 108,283,666 | 108,143,694 | 108,253,841 | 107,947,490 |
Anti-dilutive shares (shares) | 0 | 0 | 0 | 0 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity - Reclassifications Out of Accumulated Other Comprehensive Loss Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation Of Accumulated Comprehensive Income | ||||
Beginning equity balance | $ 3,411,385 | $ 3,425,140 | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | $ (343) | $ (19,257) | (18,987) | (22,732) |
Interest expense | 41,740 | 41,182 | 121,125 | 125,374 |
Net current period other comprehensive income | (7,599) | 18,775 | (22,847) | 38,852 |
Ending equity balance | 3,271,709 | 3,449,949 | 3,271,709 | 3,449,949 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Other comprehensive loss before reclassifications | (5,176) | 17,116 | (17,297) | 42,756 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | (2,423) | 1,659 | (5,550) | (3,904) |
Net current period other comprehensive income | (7,599) | 18,775 | (22,847) | 38,852 |
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 3,562 | 3,562 | ||
Other gains and (losses) | (2,433) | (2,189) | (5,811) | (8,490) |
Interest expense | 10 | 286 | 261 | 1,024 |
Gains and (Losses) on Derivative Instruments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Other comprehensive loss before reclassifications | 3,195 | (8,367) | 12,003 | (25,108) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | (2,423) | (1,903) | (5,550) | (7,466) |
Net current period other comprehensive income | 772 | (10,270) | 6,453 | (32,574) |
Gains and (Losses) on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 0 | 0 | ||
Other gains and (losses) | (2,433) | (2,189) | (5,811) | (8,490) |
Interest expense | 10 | 286 | 261 | 1,024 |
Foreign Currency Translation Adjustments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Other comprehensive loss before reclassifications | (8,102) | 25,417 | (29,401) | 68,124 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 3,562 | 0 | 3,562 |
Net current period other comprehensive income | (8,102) | 28,979 | (29,401) | 71,686 |
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 3,562 | 3,562 | ||
Other gains and (losses) | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Gains and (Losses) on Investments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Other comprehensive loss before reclassifications | (269) | 66 | 101 | (260) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net current period other comprehensive income | (269) | 66 | 101 | (260) |
Gains and (Losses) on Investments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 0 | 0 | ||
Other gains and (losses) | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Beginning equity balance | (247,402) | (243,648) | (236,011) | (254,485) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (254,055) | (229,581) | (254,055) | (229,581) |
Gains and (Losses) on Derivative Instruments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Beginning equity balance | 14,858 | 24,636 | 9,172 | 46,935 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | 15,631 | 14,374 | 15,631 | 14,374 |
Foreign Currency Translation Adjustments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Beginning equity balance | (262,469) | (267,868) | (245,022) | (301,330) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (269,626) | (243,605) | (269,626) | (243,605) |
Gains and (Losses) on Investments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Beginning equity balance | 209 | (416) | (161) | (90) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (60) | (350) | (60) | (350) |
Noncontrolling Interest | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 946 | (4,708) | 4,803 | (13,948) |
Gains and (Losses) on Derivative Instruments | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 1 | 8 | 6 | 13 |
Foreign Currency Translation Adjustments | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 945 | (4,716) | 4,797 | (13,961) |
Gains and (Losses) on Investments | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax benefit (expense) | $ 1.2 | $ (3) | $ (8.2) | $ (11.1) |
Deferred income tax (expense) benefit | $ (3.9) | $ 1.2 | 5.2 | $ 8.2 |
Tax benefit from adjustment to deferred tax liability | $ 6.2 |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | Jun. 05, 2018USD ($)property | Apr. 30, 2018property | Jan. 31, 2017USD ($)property | Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($)property | Sep. 30, 2018USD ($)property | Sep. 30, 2017USD ($)property | Dec. 31, 2017property |
Discontinued Operation Additional Disclosures | ||||||||
Purchases of real estate | $ 530,114 | $ 6,000 | ||||||
Gain on sale of real estate, net of tax (reclassification) | $ 343 | $ 19,257 | $ 18,987 | 22,732 | ||||
Disposal group, non current asset | $ 31,300 | |||||||
Disposal group, non current liability | 28,100 | |||||||
Disposal group, restricted cash | 3,800 | |||||||
Loss on sale of real estate, net of tax (less than) | $ 100 | |||||||
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Gain on sale of real estate, net of tax (reclassification) | $ (3,562) | $ (3,562) | ||||||
International Properties | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Number of real estate properties | property | 2 | |||||||
Hotel | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Number of real estate properties | property | 1 | 1 | ||||||
Operating Lease | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Gain on sale of real estate, net of tax | $ 6,300 | |||||||
Number of real estate properties disposed of | property | 23 | |||||||
Purchases of real estate | $ 617,100 | |||||||
Operating Lease | Manufacturing facility in Bessemer, Alabama | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Purchases of real estate | $ 85,500 | |||||||
Properties disposed of by sale | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Number of properties sold | property | 3 | 5 | 10 | 11 | ||||
Proceeds from the sale of properties | $ 17,400 | $ 58,700 | $ 95,100 | $ 102,500 | ||||
Gain on sale of real estate, net of tax | $ 300 | $ 19,300 | $ 12,700 | $ 22,700 | ||||
Properties disposed of by sale | Land, buildings and improvements | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Number of properties sold | property | 1 | 8 | ||||||
Properties disposed of by sale | Land, buildings and improvements | Hotel | ||||||||
Discontinued Operation Additional Disclosures | ||||||||
Number of real estate properties | property | 2 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Segment Reporting Information | ||||
Number of business segments | segment | 2 | |||
Real Estate | Operating property revenues | ||||
Segment Reporting Information | ||||
Gross contract revenue | $ 4,282 | $ 8,449 | $ 16,365 | $ 23,652 |
Real Estate | Operating property revenues | Hotel in Memphis, Tennessee | ||||
Segment Reporting Information | ||||
Gross contract revenue | 4,200 | 4,800 | 12,400 | |
Real Estate | Operating property revenues | Hotel in Bloomington, Minnesota | ||||
Segment Reporting Information | ||||
Gross contract revenue | $ 4,300 | $ 4,300 | $ 11,500 | $ 11,200 |
Segment Reporting - Income From
Segment Reporting - Income From Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Revenues | $ 209,384 | $ 210,754 | $ 612,337 | $ 651,341 |
Operating Expenses | ||||
Depreciation and amortization | 67,825 | 64,040 | 198,119 | 189,319 |
General and administrative | 15,863 | 17,236 | 50,888 | 53,189 |
Property expenses, excluding reimbursable tenant costs | 7,953 | 10,556 | 26,760 | 31,196 |
Reimbursable tenant and affiliate costs | 12,021 | 11,608 | 34,814 | 61,330 |
Merger and other expenses | 1,673 | 65 | 4,328 | 1,138 |
Stock-based compensation expense | 2,475 | 4,635 | 14,392 | 14,649 |
Impairment charges | 0 | 0 | 4,790 | 0 |
Total operating expenses | 110,937 | 115,164 | 341,105 | 378,037 |
Other Income and Expenses | ||||
Interest expense | (41,740) | (41,182) | (121,125) | (125,374) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 18,363 | 16,318 | 46,246 | 47,820 |
Other gains and (losses) | 8,875 | (4,569) | 16,698 | (4,969) |
Total other income and expenses | (14,502) | (29,433) | (58,181) | (82,523) |
Income before income taxes and gain on sale of real estate | 83,945 | 66,157 | 213,051 | 190,781 |
(Provision for) benefit from income taxes | (2,715) | (1,760) | (2,975) | (2,903) |
Income before gain on sale of real estate | 81,230 | 64,397 | 210,076 | 187,878 |
Gain on sale of real estate, net of tax | 343 | 19,257 | 18,987 | 22,732 |
Net Income | 81,573 | 83,654 | 229,063 | 210,610 |
Net income attributable to noncontrolling interests | (4,225) | (3,376) | (10,760) | (8,530) |
Net Income Attributable to W. P. Carey | 77,348 | 80,278 | 218,303 | 202,080 |
Real Estate | ||||
Revenues | ||||
Lease revenues | 167,088 | 161,511 | 492,935 | 475,547 |
Reimbursable tenant costs | 5,979 | 5,397 | 17,931 | 15,940 |
Lease termination income and other | 1,981 | 1,227 | 3,603 | 4,234 |
Revenues | 179,330 | 176,584 | 530,834 | 519,373 |
Operating Expenses | ||||
Depreciation and amortization | 66,837 | 62,970 | 195,131 | 186,481 |
General and administrative | 11,349 | 11,234 | 34,013 | 27,311 |
Property expenses, excluding reimbursable tenant costs | 7,953 | 10,556 | 26,760 | 31,196 |
Reimbursable tenant and affiliate costs | 5,979 | 5,397 | 17,931 | 15,940 |
Merger and other expenses | 1,673 | 65 | 4,328 | 1,138 |
Stock-based compensation expense | 1,380 | 1,880 | 7,676 | 4,733 |
Impairment charges | 0 | 0 | 4,790 | 0 |
Total operating expenses | 95,171 | 92,102 | 290,629 | 266,799 |
Other Income and Expenses | ||||
Interest expense | (41,740) | (41,182) | (121,125) | (125,374) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 4,699 | 3,740 | 11,586 | 9,533 |
Other gains and (losses) | 8,197 | (4,918) | 14,940 | (6,249) |
Total other income and expenses | (28,844) | (42,360) | (94,599) | (122,090) |
Income before income taxes and gain on sale of real estate | 55,315 | 42,122 | 145,606 | 130,484 |
(Provision for) benefit from income taxes | (424) | (1,511) | 1,792 | (6,696) |
Income before gain on sale of real estate | 54,891 | 40,611 | 147,398 | 123,788 |
Gain on sale of real estate, net of tax | 343 | 19,257 | 18,987 | 22,732 |
Net Income | 55,234 | 59,868 | 166,385 | 146,520 |
Net income attributable to noncontrolling interests | (4,225) | (3,376) | (10,760) | (8,530) |
Net Income Attributable to W. P. Carey | 51,009 | 56,492 | 155,625 | 137,990 |
Real Estate | Operating property revenues | ||||
Revenues | ||||
Gross contract revenue | $ 4,282 | $ 8,449 | $ 16,365 | $ 23,652 |
Segment Reporting - Income Fr_2
Segment Reporting - Income From Investment Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Expenses | ||||
Reimbursable tenant and affiliate costs | $ 12,021 | $ 11,608 | $ 34,814 | $ 61,330 |
General and administrative | 15,863 | 17,236 | 50,888 | 53,189 |
Subadvisor fees | 3,127 | 5,206 | 7,014 | 11,598 |
Stock-based compensation expense | 2,475 | 4,635 | 14,392 | 14,649 |
Depreciation and amortization | 67,825 | 64,040 | 198,119 | 189,319 |
Restructuring and other compensation | 0 | 1,356 | 0 | 9,074 |
Dealer manager fees and expenses | 0 | 462 | 0 | 6,544 |
Total operating expenses | 110,937 | 115,164 | 341,105 | 378,037 |
Other Income and Expenses | ||||
Equity in earnings of equity method investments in the Managed Programs and real estate | 18,363 | 16,318 | 46,246 | 47,820 |
Other gains and (losses) | 8,875 | (4,569) | 16,698 | (4,969) |
Total other income and expenses | (14,502) | (29,433) | (58,181) | (82,523) |
Income before income taxes and gain on sale of real estate | 83,945 | 66,157 | 213,051 | 190,781 |
Provision for income taxes | (2,715) | (1,760) | (2,975) | (2,903) |
Net Income Attributable to W. P. Carey | 77,348 | 80,278 | 218,303 | 202,080 |
Asset management revenue | ||||
Investment Management: | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Structuring revenue | ||||
Investment Management: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Reimbursable costs from affiliates | ||||
Investment Management: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Other advisory revenue | ||||
Investment Management: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Dealer manager fees | ||||
Investment Management: | ||||
Gross contract revenue | 0 | 105 | 0 | 4,430 |
Investment Management | ||||
Investment Management: | ||||
Gross contract revenue | 30,054 | 34,170 | 81,503 | 131,968 |
Operating Expenses | ||||
Reimbursable tenant and affiliate costs | 6,042 | 6,211 | 16,883 | 45,390 |
General and administrative | 4,514 | 6,002 | 16,875 | 25,878 |
Subadvisor fees | 3,127 | 5,206 | 7,014 | 11,598 |
Stock-based compensation expense | 1,095 | 2,755 | 6,716 | 9,916 |
Depreciation and amortization | 988 | 1,070 | 2,988 | 2,838 |
Restructuring and other compensation | 0 | 1,356 | 0 | 9,074 |
Dealer manager fees and expenses | 0 | 462 | 0 | 6,544 |
Total operating expenses | 15,766 | 23,062 | 50,476 | 111,238 |
Other Income and Expenses | ||||
Equity in earnings of equity method investments in the Managed Programs and real estate | 13,664 | 12,578 | 34,660 | 38,287 |
Other gains and (losses) | 678 | 349 | 1,758 | 1,280 |
Total other income and expenses | 14,342 | 12,927 | 36,418 | 39,567 |
Income before income taxes and gain on sale of real estate | 28,630 | 24,035 | 67,445 | 60,297 |
Provision for income taxes | (2,291) | (249) | (4,767) | 3,793 |
Net Income Attributable to W. P. Carey | 26,339 | 23,786 | 62,678 | 64,090 |
Investment Management | Asset management revenue | ||||
Investment Management: | ||||
Gross contract revenue | 17,349 | 17,938 | 51,602 | 53,271 |
Investment Management | Structuring revenue | ||||
Investment Management: | ||||
Gross contract revenue | 6,553 | 9,817 | 12,718 | 27,981 |
Investment Management | Reimbursable costs from affiliates | ||||
Investment Management: | ||||
Gross contract revenue | 6,042 | 6,211 | 16,883 | 45,390 |
Investment Management | Other advisory revenue | ||||
Investment Management: | ||||
Gross contract revenue | 110 | 99 | 300 | 896 |
Investment Management | Dealer manager fees | ||||
Investment Management: | ||||
Gross contract revenue | $ 0 | $ 105 | $ 0 | $ 4,430 |
Segment Reporting - Total Compa
Segment Reporting - Total Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information Profit Loss | ||||
Revenues | $ 209,384 | $ 210,754 | $ 612,337 | $ 651,341 |
Operating expenses | 110,937 | 115,164 | 341,105 | 378,037 |
Other income and (expenses) | (14,502) | (29,433) | (58,181) | (82,523) |
Provision for income taxes | (2,715) | (1,760) | (2,975) | (2,903) |
Gain on sale of real estate, net of tax | 343 | 19,257 | 18,987 | 22,732 |
Net income attributable to noncontrolling interests | (4,225) | (3,376) | (10,760) | (8,530) |
Net Income Attributable to W. P. Carey | $ 77,348 | $ 80,278 | $ 218,303 | $ 202,080 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Total assets | $ 8,518,988 | $ 8,231,402 |
Real Estate | ||
Assets | ||
Total assets | 8,148,350 | 7,885,751 |
Investment Management | ||
Assets | ||
Total assets | $ 370,638 | $ 345,651 |
Subsequent Events - Narratives
Subsequent Events - Narratives (Details) - Subsequent event - USD ($) | Oct. 31, 2018 | Oct. 09, 2018 |
Subsequent Event | ||
Fair value of W. P. Carey shares of common stock issued | $ 3,600,000,000 | |
Unsecured senior notes | Euro Senior Note | ||
Subsequent Event | ||
Principal Amount | $ 500,000,000 | |
Coupon rate (percentage) | 2.25% | |
Price of par value (percentage) | 99.252% | |
Debt instrument, term | 7 years 6 months | |
CPA: 17 - Global | ||
Subsequent Event | ||
Shares issued by acquired entity (shares) | 336,715,969 | |
CPA: 17 - Global | ||
Subsequent Event | ||
Share conversion rate (per share) | $ 0.160 | |
Total consideration | $ 3,600,000,000 | |
Shares issued as consideration, shares | 53,849,087 | |
Share price (usd per share) | $ 66.01 | |
Cash paid in lieu of issuing fractional shares | $ 1,700,000 | |
Repayments of outstanding debt | $ 180,300,000 |