Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | W. P. Carey Inc. | |
Entity Central Index Key | 0001025378 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
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 | 170,396,695 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments in real estate: | ||
Land, buildings and improvements | $ 9,396,426 | $ 9,251,396 |
Net investments in direct financing leases | 1,279,122 | |
Net investments in direct financing leases | 1,306,215 | |
In-place lease intangible assets and other | 2,101,473 | 2,009,628 |
Above-market rent intangible assets | 922,427 | 925,797 |
Investments in real estate | 13,699,448 | 13,493,036 |
Accumulated depreciation and amortization | (1,681,942) | (1,564,182) |
Net investments in real estate | 12,017,506 | 11,928,854 |
Equity investments in the Managed Programs and real estate | 320,066 | 329,248 |
Cash and cash equivalents | 243,325 | 217,644 |
Due from affiliates | 71,477 | 74,842 |
Other assets, net | 584,855 | 711,507 |
Goodwill | 918,673 | 920,944 |
Total assets | 14,155,902 | 14,183,039 |
Debt: | ||
Senior unsecured notes, net | 3,513,268 | 3,554,470 |
Unsecured revolving credit facility | 106,899 | 91,563 |
Non-recourse mortgages, net | 2,503,321 | 2,732,658 |
Debt, net | 6,123,488 | 6,378,691 |
Accounts payable, accrued expenses and other liabilities | 452,920 | 403,896 |
Below-market rent and other intangible liabilities, net | 217,506 | 225,128 |
Deferred income taxes | 167,294 | 173,115 |
Dividends payable | 176,965 | 172,154 |
Total liabilities | 7,138,173 | 7,352,984 |
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; 169,636,526 and 165,279,642 shares, respectively, issued and outstanding | 170 | 165 |
Additional paid-in capital | 8,483,301 | 8,187,335 |
Distributions in excess of accumulated earnings | (1,256,754) | (1,143,992) |
Deferred compensation obligation | 37,263 | 35,766 |
Accumulated other comprehensive loss | (252,683) | (254,996) |
Total stockholders’ equity | 7,011,297 | 6,824,278 |
Noncontrolling interests | 6,432 | 5,777 |
Total equity | 7,017,729 | 6,830,055 |
Total liabilities and equity | $ 14,155,902 | $ 14,183,039 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 169,636,526 | 165,279,642 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investment Management: | ||
Revenues | $ 298,323 | $ 201,810 |
Operating Expenses | ||
Depreciation and amortization | 112,379 | 65,957 |
General and administrative | 21,285 | 18,583 |
Reimbursable tenant costs | 13,171 | 6,219 |
Operating property expenses | 10,594 | 5,670 |
Property expenses, excluding reimbursable tenant costs | 9,912 | 4,229 |
Stock-based compensation expense | 4,165 | 8,219 |
Reimbursable costs from affiliates | 3,868 | 5,304 |
Subadvisor fees | 2,202 | 2,032 |
Merger and other expenses | 146 | (37) |
Impairment charges | 0 | 4,790 |
Total operating expenses | 177,722 | 120,966 |
Other Income and Expenses | ||
Interest expense | (61,313) | (38,074) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,491 | 15,325 |
Other gains and (losses) | 955 | (2,763) |
Gain on sale of real estate, net | 933 | 6,732 |
Total other income and expenses | (53,934) | (18,780) |
Income before income taxes | 66,667 | 62,064 |
Benefit from income taxes | 2,129 | 6,002 |
Net Income | 68,796 | 68,066 |
Net income attributable to noncontrolling interests | (302) | (2,792) |
Net Income Attributable to W. P. Carey | $ 68,494 | $ 65,274 |
Basic Earnings Per Share (usd per share) | $ 0.41 | $ 0.60 |
Diluted Earnings Per Share (usd per share) | $ 0.41 | $ 0.60 |
Weighted-Average Shares Outstanding | ||
Basic (in shares) | 167,234,121 | 108,057,940 |
Diluted (in shares) | 167,434,740 | 108,211,936 |
Real Estate | ||
Real Estate: | ||
Lease revenues | $ 262,939 | $ 169,432 |
Gross contract revenue | 15,996 | 7,218 |
Lease termination income and other | 3,270 | 942 |
Investment Management: | ||
Gross contract revenue | 15,996 | 7,218 |
Revenues | 282,205 | 177,592 |
Operating Expenses | ||
Depreciation and amortization | 111,413 | 64,920 |
General and administrative | 15,188 | 12,065 |
Reimbursable tenant costs | 13,171 | 6,219 |
Operating property expenses | 10,594 | 5,670 |
Property expenses, excluding reimbursable tenant costs | 9,912 | 4,229 |
Stock-based compensation expense | 2,800 | 4,306 |
Merger and other expenses | 146 | (37) |
Impairment charges | 0 | 4,790 |
Total operating expenses | 163,224 | 102,162 |
Other Income and Expenses | ||
Interest expense | (61,313) | (38,074) |
Equity in earnings of equity method investments in the Managed Programs and real estate | (78) | 3,358 |
Other gains and (losses) | 970 | (2,887) |
Gain on sale of real estate, net | 933 | 6,732 |
Total other income and expenses | (59,488) | (30,871) |
Income before income taxes | 59,493 | 44,559 |
Benefit from income taxes | (6,159) | 3,533 |
Net Income | 53,334 | 48,092 |
Net income attributable to noncontrolling interests | 74 | (2,792) |
Net Income Attributable to W. P. Carey | 53,408 | 45,300 |
Investment Management | ||
Real Estate: | ||
Gross contract revenue | 16,118 | 24,218 |
Investment Management: | ||
Gross contract revenue | 16,118 | 24,218 |
Operating Expenses | ||
Depreciation and amortization | 966 | 1,037 |
General and administrative | 6,097 | 6,518 |
Stock-based compensation expense | 1,365 | 3,913 |
Reimbursable costs from affiliates | 3,868 | 5,304 |
Subadvisor fees | 2,202 | 2,032 |
Total operating expenses | 14,498 | 18,804 |
Other Income and Expenses | ||
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,569 | 11,967 |
Other gains and (losses) | (15) | 124 |
Total other income and expenses | 5,554 | 12,091 |
Income before income taxes | 7,174 | 17,505 |
Benefit from income taxes | 8,288 | 2,469 |
Net Income | 15,462 | 19,974 |
Net income attributable to noncontrolling interests | (376) | 0 |
Net Income Attributable to W. P. Carey | 15,086 | 19,974 |
Investment Management | Asset management revenue | ||
Real Estate: | ||
Gross contract revenue | 9,732 | 16,985 |
Investment Management: | ||
Gross contract revenue | 9,732 | 16,985 |
Investment Management | Reimbursable costs from affiliates | ||
Real Estate: | ||
Gross contract revenue | 3,868 | 5,304 |
Investment Management: | ||
Gross contract revenue | 3,868 | 5,304 |
Investment Management | Structuring and other advisory revenue | ||
Real Estate: | ||
Gross contract revenue | 2,518 | 1,929 |
Investment Management: | ||
Gross contract revenue | $ 2,518 | $ 1,929 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 68,796 | $ 68,066 |
Other Comprehensive Income | ||
Unrealized gain (loss) on derivative instruments | 1,949 | (8,392) |
Change in unrealized gain on investments | 537 | 428 |
Foreign currency translation adjustments | (173) | 18,516 |
Net current period other comprehensive income | 2,313 | 10,552 |
Comprehensive Income | 71,109 | 78,618 |
Amounts Attributable to Noncontrolling Interests | ||
Net income | (302) | (2,792) |
Foreign currency translation adjustments | 0 | (3,782) |
Unrealized loss on derivative instruments | 0 | 3 |
Comprehensive income attributable to noncontrolling interests | (302) | (6,571) |
Comprehensive Income Attributable to W. P. Carey | $ 70,807 | $ 72,047 |
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, 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 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards, value | (13,543) | (13,543) | $ 0 | (13,543) | ||||
Shares issued upon delivery of vested restricted share awards, shares | 271,824 | |||||||
Deferral of vested shares, net | 0 | 0 | 10,509 | (10,509) | ||||
Amortization of stock-based compensation expense | 8,219 | 8,219 | 8,219 | |||||
Distributions to noncontrolling interests | (5,224) | (5,224) | ||||||
Dividends declared | (109,950) | (109,950) | 675 | (110,625) | ||||
Net Income | 68,066 | 65,274 | 65,274 | 2,792 | ||||
Other comprehensive income: | ||||||||
Unrealized gain (loss) on derivative instruments | (8,392) | (8,389) | (8,389) | (3) | ||||
Change in unrealized gain on investments | 428 | 428 | 428 | |||||
Foreign currency translation adjustments | 18,516 | 14,734 | 14,734 | 3,782 | ||||
Ending equity balance at Mar. 31, 2018 | 3,369,505 | 3,149,034 | $ 107 | 4,439,433 | (1,097,415) | 36,147 | (229,238) | 220,471 |
Ending equity balance, shares at Mar. 31, 2018 | 107,194,440 | |||||||
Beginning equity balance at Dec. 31, 2018 | $ 6,830,055 | 6,824,278 | $ 165 | 8,187,335 | (1,143,992) | 35,766 | (254,996) | 5,777 |
Beginning equity balance, shares at Dec. 31, 2018 | 165,279,642 | 165,279,642 | ||||||
W.P. Carey Stockholders | ||||||||
Shares issued under ATM Program, net, value | $ 303,831 | 303,831 | $ 4 | 303,827 | ||||
Shares issued under ATM Program, net, shares | 4,053,623 | |||||||
Shares issued upon delivery of vested restricted share awards, value | (15,565) | (15,565) | $ 1 | (15,566) | ||||
Shares issued upon delivery of vested restricted share awards, shares | 303,261 | |||||||
Deferral of vested shares, net | 0 | (1,445) | 1,445 | |||||
Amortization of stock-based compensation expense | 4,165 | 4,165 | 4,165 | |||||
Contributions from noncontrolling interests | 849 | 849 | ||||||
Distributions to noncontrolling interests | (496) | (496) | ||||||
Dividends declared | (176,219) | (176,219) | 4,985 | (181,256) | 52 | |||
Net Income | 68,796 | 68,494 | 68,494 | 302 | ||||
Other comprehensive income: | ||||||||
Unrealized gain (loss) on derivative instruments | 1,949 | 1,949 | 1,949 | |||||
Change in unrealized gain on investments | 537 | 537 | 537 | |||||
Foreign currency translation adjustments | (173) | (173) | (173) | |||||
Ending equity balance at Mar. 31, 2019 | $ 7,017,729 | $ 7,011,297 | $ 170 | $ 8,483,301 | $ (1,256,754) | $ 37,263 | $ (252,683) | $ 6,432 |
Ending equity balance, shares at Mar. 31, 2019 | 169,636,526 | 169,636,526 |
Consolidated Statement of Equ_2
Consolidated Statement of Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 1.032 | $ 1.015 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows — Operating Activities | ||
Net income | $ 68,796 | $ 68,066 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 115,400 | 65,837 |
Amortization of rent-related intangibles and deferred rental revenue | 15,925 | 11,455 |
Straight-line rent adjustments | (11,192) | (3,722) |
Investment Management revenue received in shares of Managed REITs and other | (7,681) | (16,505) |
Realized and unrealized losses on foreign currency transactions, derivatives, and other | 7,504 | 4,267 |
Distributions of earnings from equity method investments | 7,080 | 15,289 |
Equity in earnings of equity method investments in the Managed Programs and real estate | (5,491) | (15,325) |
Stock-based compensation expense | 4,165 | 8,219 |
Deferred income tax benefit | (1,829) | (12,155) |
Gain on sale of real estate, net | (933) | (6,732) |
Impairment charges | 0 | 4,790 |
Changes in assets and liabilities: | ||
Net changes in other operating assets and liabilities | (50,939) | (23,893) |
Deferred structuring revenue received | 2,581 | 4,080 |
Increase in deferred structuring revenue receivable | (540) | (725) |
Net Cash Provided by Operating Activities | 142,846 | 102,946 |
Cash Flows — Investing Activities | ||
Purchases of real estate | (164,929) | (85,197) |
Funding for real estate construction, redevelopments, and other capital expenditures on real estate | (27,076) | (20,548) |
Return of capital from equity method investments | 18,750 | 3,244 |
Other investing activities, net | 16,835 | 380 |
Proceeds from sales of real estate | 4,851 | 35,691 |
Capital contributions to equity method investments | (2,594) | (715) |
Proceeds from repayment of short-term loans to affiliates | 0 | 37,000 |
Funding of short-term loans to affiliates | 0 | (10,000) |
Net Cash Used in Investing Activities | (154,163) | (40,145) |
Cash Flows — Financing Activities | ||
Proceeds from shares issued under ATM Program, net of selling costs | 303,831 | 0 |
Prepayments of mortgage principal | (199,579) | (164,908) |
Dividends paid | (171,408) | (109,407) |
Proceeds from Senior Unsecured Credit Facility | 145,225 | 292,964 |
Repayments of Senior Unsecured Credit Facility | (128,452) | (650,722) |
Scheduled payments of mortgage principal | (40,360) | (22,472) |
Payments for withholding taxes upon delivery of equity-based awards and exercises of stock options | (15,565) | (13,883) |
Other financing activities, net | 1,238 | (137) |
Contributions from noncontrolling interests | 849 | 0 |
Distributions paid to noncontrolling interests | (496) | (5,224) |
Proceeds from issuance of Senior Unsecured Notes | 0 | 616,355 |
Payment of financing costs | 0 | (3,590) |
Proceeds from mortgage financing | 0 | 857 |
Net Cash Used in Financing Activities | (104,717) | (60,167) |
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 | (2,350) | 3,073 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (118,384) | 5,707 |
Cash and cash equivalents and restricted cash, beginning of period | 424,063 | 209,676 |
Cash and cash equivalents and restricted cash, end of period | $ 305,679 | $ 215,383 |
Business and Organization
Business and Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization W. P. Carey Inc. (“W. P. Carey”) is a REIT that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe on a long-term basis. 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.” We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders 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 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. Through our taxable REIT subsidiaries (“TRSs”), we also earn revenue as the advisor to certain publicly owned, non-traded investment programs. 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. On October 31, 2018, one of the non-traded REITs that we advised, Corporate Property Associates 17 – Global Incorporated (“CPA:17 – Global”), merged with and into one of our wholly owned subsidiaries (the “CPA:17 Merger”) ( Note 3 ). At March 31, 2019 , we were the advisor to the following entities: • Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”), a publicly owned, non-traded REIT that primarily invests in commercial real estate properties; we refer to CPA:17 – Global (until the closing of the CPA:17 Merger on October 31, 2018) and CPA:18 – Global together as the “CPA REITs;” • Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”), two publicly owned, non-traded 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. (“CESH”), 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 (including CPA:17 – Global prior to the CPA:17 Merger) and CESH collectively as the “Managed Programs.” We no longer raise capital for new or existing funds, but currently expect to continue managing our existing Managed Programs through the end of their respective life cycles ( Note 3 ). 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. At March 31, 2019 , our owned portfolio was comprised of our full or partial ownership interests in 1,168 properties, totaling approximately 133.5 million square feet, substantially all of which were net leased to 310 tenants, with a weighted-average lease term of 10.2 years and an occupancy rate of 98.2% . In addition, at March 31, 2019 , our portfolio was comprised of full or majority ownership interests in 48 operating properties, including 46 self-storage properties and two hotels, totaling approximately 3.4 million square feet. 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 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 March 31, 2019 , CPA:18 – Global owned all or a portion of 56 net-leased properties (including certain properties in which we also have an ownership interest), totaling approximately 10.0 million square feet, substantially all of which were leased to 90 tenants, with an occupancy rate of approximately 97.8% . CPA:18 – Global and the other Managed Programs also had interests in 129 operating properties, totaling approximately 15.5 million square feet in the aggregate. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 (“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, 2018 , which are included in the 2018 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. 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 (“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. During the three months ended March 31, 2019 , we received a full repayment of our preferred equity interest in an unconsolidated VIE entity. As a result, this preferred equity interest is now retired and is no longer considered a VIE ( Note 7 ). At March 31, 2019 and December 31, 2018 , we considered 31 and 32 entities to be VIEs, respectively, of which we consolidated 24 as of both period ends, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): March 31, 2019 December 31, 2018 Land, buildings and improvements $ 798,667 $ 781,347 Net investments in direct financing leases 300,896 305,493 In-place lease intangible assets and other 99,620 84,870 Above-market rent intangible assets 43,763 45,754 Accumulated depreciation and amortization (171,527 ) (164,942 ) Total assets 1,137,418 1,112,984 Non-recourse mortgages, net $ 149,701 $ 157,955 Total liabilities 215,443 227,461 At March 31, 2019 and December 31, 2018 , our seven and eight unconsolidated VIEs, respectively, included our interests in five and six unconsolidated real estate investments, respectively, which we account for under the equity method of accounting, and two unconsolidated entities, which we accounted for at fair value. 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 March 31, 2019 and December 31, 2018 , the net carrying amount of our investments in these entities was $281.1 million and $301.6 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. 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 March 31, 2019 , 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. We currently present Operating property expenses on its own line item in the consolidated statements of income, which was previously included within Property expenses, excluding reimbursable tenant costs. In addition, in accordance with the SEC’s adoption of certain rule and form amendments on August 17, 2018, we moved Gain on sale of real estate, net in the consolidated statements of income to be included within Other Income and Expenses. Also, structuring revenue and other advisory revenue are now included within Structuring and other advisory revenue in the consolidated statements of income. In connection with our adoption of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , as described below in Recent Accounting Pronouncements , reimbursable tenant costs (within Real Estate revenues) are now included within Lease revenues in the consolidated statements of income. In addition, we currently present Reimbursable tenant costs and Reimbursable costs from affiliates (both within operating expenses) on their own line items in the consolidated statements of income. Previously, these line items were included within Reimbursable tenant and affiliate costs. Revenue Recognition Revenue from contracts under Accounting Standards Codification (“ASC”) 606 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 for our Real Estate segment primarily represented operating property revenues of $6.3 million and $7.2 million for the three months ended March 31, 2019 and 2018 , respectively. Such 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 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 . Restricted Cash 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): March 31, 2019 December 31, 2018 Cash and cash equivalents $ 243,325 $ 217,644 Restricted cash (a) 62,354 206,419 Total cash and cash equivalents and restricted cash $ 305,679 $ 424,063 __________ (a) Restricted cash is included within Other assets, net in our consolidated balance sheets. The amount as of December 31, 2018 includes $145.7 million of proceeds from the sale of a portfolio of Australian properties in December 2018. These funds were transferred from a restricted cash account to us in January 2019. Recent Accounting Pronouncements Pronouncements Adopted as of March 31, 2019 In February 2016, the Financial Accounting Standards Board (“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, are capitalized and recorded on the balance sheet. For lessors, however, the new standard remains generally consistent with existing guidance, but has been updated to align with certain changes to the lessee model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). We adopted this guidance for our interim and annual periods beginning January 1, 2019 using the modified retrospective method, applying the transition provisions at the beginning of the period of adoption rather than at the beginning of the earliest comparative period presented. We elected the package of practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, lease classification, and initial direct costs. The adoption of the lease standard did not result in a cumulative effect adjustment recognized in the opening balance of retained earnings as of January 1, 2019. • As a Lessee : we recognized $115.6 million of land lease right-of-use (“ROU”) assets, $12.7 million of office lease ROU assets, and $95.3 million of corresponding lease liabilities for certain operating office and land lease arrangements for which we were the lessee on January 1, 2019, which included reclassifying below-market ground lease intangible assets, above-market ground lease intangible liabilities, prepaid rent, and deferred rent as a component of the ROU asset (a net reclassification of $33.0 million ). See Note 4 for additional disclosures on the presentation of these amounts in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. We determine if an arrangement contains a lease at contract inception and determine the classification of the lease at commencement. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We do not include renewal options in the lease term when calculating the lease liability unless we are reasonably certain we will exercise the option. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our variable lease payments consist of increases as a result of the Consumer Price Index (“CPI”) or other comparable indices, taxes, and maintenance costs. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The implicit rate within our operating leases is generally not determinable and, as a result, we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using estimated baseline mortgage rates. These baseline rates are determined based on a review of current mortgage debt market activity for benchmark securities across domestic and international markets, utilizing a yield curve. The rates are then adjusted for various factors, including level of collateralization and lease term. • As a Lessor : a practical expedient allows lessors to combine non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues), if both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component, and the lease component would otherwise be classified as an operating lease. We elected the practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred. Under ASU 2016-02, lessors are allowed to only capitalize incremental direct leasing costs. Historically, we have not capitalized internal legal and leasing costs incurred, and, as a result, will not be impacted by this change. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 makes more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and eliminates the requirements to separately measure and disclose 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. We adopted this guidance for our interim and annual periods beginning January 1, 2019. The adoption of this standard impacted our consolidated financial statements for both cash flow hedges and net investment hedges. Changes in the fair value of our hedging instruments are no longer separated into effective and ineffective portions. The entire change in the fair value of these hedging instruments included in the assessment of effectiveness is now recorded in Accumulated other comprehensive loss. The impact to our consolidated financial statements as a result of these changes was not material. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees, which will align the accounting for such payments to nonemployees with the existing requirements for share-based payments granted to employees (with certain exceptions). These share-based payments will now be measured at the grant-date fair value of the equity instrument issued. We adopted this guidance for our interim and annual periods beginning January 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements to be Adopted after March 31, 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating 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. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. 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. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Advisory Agreements and Partnership Agreements with the Managed Programs We have advisory agreements with each of the existing 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 1 ), the advisory agreements with CPA:17 – Global were terminated, and we no longer receive fees or reimbursements from CPA:17 – Global. We no longer raise capital for new or existing funds, but 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 ( Note 1 ). We have partnership agreements with each of the Managed Programs, and under the partnership agreements with the Managed REITs, we are entitled to receive certain cash distributions from their respective operating partnerships. The following tables present a summary of revenue earned from the Managed Programs for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended March 31, 2019 2018 Asset management revenue (a) $ 9,732 $ 16,985 Distributions of Available Cash 5,685 10,502 Reimbursable costs from affiliates (a) 3,868 5,304 Structuring and other advisory revenue (a) 2,518 1,929 Interest income on deferred acquisition fees and loans to affiliates (b) 520 553 $ 22,323 $ 35,273 Three Months Ended March 31, 2019 2018 CPA:17 – Global (c) $ — $ 15,784 CPA:18 – Global 7,961 6,887 CWI 1 7,501 6,979 CWI 2 5,746 5,037 CESH 1,115 586 $ 22,323 $ 35,273 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Other gains and (losses) in the consolidated statements of income. (c) We no longer earn revenue from CPA:17 – Global following the completion of the CPA:17 Merger on October 31, 2018 ( Note 1 ). The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): March 31, 2019 December 31, 2018 Short-term loans to affiliates, including accrued interest $ 59,312 $ 58,824 Deferred acquisition fees receivable, including accrued interest 6,704 8,697 Reimbursable costs 2,643 3,227 Asset management fees receivable 1,653 563 Accounts receivable 997 1,425 Current acquisition fees receivable 168 2,106 $ 71,477 $ 74,842 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 existing Managed Programs: Managed Program Rate Payable Description 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 50% in cash and 50% in shares of its Class A common stock for 2019; payable in shares of its Class A common stock for 2018 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 2019 and 2018 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 2019 and 2018 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 CESH 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 and Other Advisory Revenue Under the terms of the advisory agreements with the Managed Programs, we earn revenue for structuring and negotiating investments and related financing. For the Managed REITs, the combined total of acquisition fees and other acquisition expenses are limited to 6% of the contract prices in aggregate. The following table presents a summary of our structuring fee arrangements with the existing Managed Programs: Managed Program Rate Payable Description 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 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 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 CESH 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. In addition, we may earn fees for dispositions and mortgage loan refinancings completed on behalf of the Managed Programs. Reimbursable Costs from Affiliates The existing Managed Programs 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: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 CPA:18 – Global based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and personnel costs are capped at 1.0% of CPA:18 – Global’s pro rata lease revenues for both 2019 and 2018; 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 CESH 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 existing 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. 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. Other Transactions with Affiliates CPA:17 Merger On October 31, 2018, CPA:17 – Global merged with and into one of our wholly owned subsidiaries, primarily in exchange for shares of our common stock, which we accounted for as a business combination under the acquisition method of accounting. The purchase price was allocated to the assets acquired and liabilities assumed, based upon their preliminary fair values at October 31, 2018. During the first quarter of 2019, we identified certain measurement period adjustments that impacted the provisional accounting, which increased equity investments in real estate by $2.6 million , decreased other assets, net by $3.0 million , and decreased deferred income taxes by $0.7 million , resulting in a $0.3 million decrease in goodwill. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Accordingly, the fair value of these assets and liabilities and the impact to goodwill are subject to change during the measurement period, which will end up to one year from the acquisition date. 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 March 31, 2019 Maturity Date at March 31, 2019 Maximum Loan Amount Authorized at March 31, 2019 Principal Outstanding Balance at (a) Managed Program March 31, 2019 December 31, 2018 CWI 1 (b) (c) (d) LIBOR + 1.00% 6/30/2019 $ 65,802 $ 41,637 $ 41,637 CESH (c) LIBOR + 1.00% 5/31/2020 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 $ 56,098 __________ (a) Amounts exclude accrued interest of $3.2 million and $2.7 million at March 31, 2019 and December 31, 2018 , respectively. (b) Maturity date does not take into account extension option. (c) LIBOR means London Interbank Offered Rate. (d) On April 24, 2019, CWI 1 borrowed an additional $5.0 million under its line of credit with us. Other At March 31, 2019 , we owned interests in nine jointly owned investments in real estate, with the remaining interests held by affiliates or third parties. We consolidate two such investments and account for the remaining seven investments under the equity method of accounting ( Note 7 ). In addition, we owned stock of each of the existing Managed REITs and limited partnership units of CESH at that date. We account for these investments under the equity method of accounting or at fair value ( Note 7 ). |
Land, Buildings and Improvement
Land, Buildings and Improvements | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Land, Buildings and Improvements | Land, Buildings and Improvements 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): March 31, 2019 December 31, 2018 Land $ 1,780,858 $ 1,772,099 Buildings and improvements 7,114,453 6,945,513 Real estate under construction 28,800 63,114 Less: Accumulated depreciation (777,458 ) (724,550 ) $ 8,146,653 $ 8,056,176 During the three months ended March 31, 2019 , 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 1.9% to $1.1235 from $1.1450 . As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $40.3 million from December 31, 2018 to March 31, 2019 . In connection with a change in lease classification due to an extension of the underlying lease, we reclassified one property with a carrying value of $16.6 million from Net investments in direct financing leases to Land, buildings and improvements subject to operating leases during the three months ended March 31, 2019 ( Note 5 ). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $55.1 million and $37.2 million for the three months ended March 31, 2019 and 2018 , respectively. Acquisitions of Real Estate During the three months ended March 31, 2019 , we entered into the following investments, which were deemed to be real estate asset acquisitions, at a total cost of $184.5 million , including land of $18.9 million , buildings of $132.3 million (including capitalized acquisition-related costs of $0.9 million ), net lease intangibles of $34.1 million , and a debt premium of $0.8 million (related to the non-recourse mortgage loan assumed in connection with an acquisition, as described below): • an investment of $32.7 million for an educational facility in Portland, Oregon, on February 20, 2019; • an investment of $48.3 million for an office building in Morrisville, North Carolina, on March 7, 2019; • an investment of $37.6 million for a distribution center in Inwood, West Virginia, on March 27, 2019, which is encumbered by a non-recourse mortgage loan that we assumed on the date of acquisition with an outstanding principal balance of $20.2 million ( Note 10 ); • an investment of $49.3 million for an industrial facility in Hurricane, Utah, on March 28, 2019; and • an investment of $16.6 million for an industrial facility in Bensenville, Illinois, on March 29, 2019. The acquired net lease intangibles are comprised of (i) in-place lease intangible assets totaling $43.6 million , which have a weighted-average expected life of 15.9 years , and (ii) below-market rent intangible liabilities totaling $9.6 million , which have a weighted-average expected life of 15.0 years . Real Estate Under Construction During the three months ended March 31, 2019 , we capitalized real estate under construction totaling $18.6 million . The number of construction projects in progress with balances included in real estate under construction was two and four as of March 31, 2019 and December 31, 2018 , respectively. Aggregate unfunded commitments totaled approximately $198.7 million and $204.5 million as of March 31, 2019 and December 31, 2018 , respectively. During the three months ended March 31, 2019 , we completed the following construction projects, at a total cost of $53.0 million : • an expansion project at a warehouse facility in Zabia Wola, Poland, in March 2019 at a cost totaling $5.6 million , including capitalized interest; and • a built-to-suit project for a warehouse facility in Dillon, South Carolina, in March 2019 at a cost totaling $47.4 million , including capitalized interest. Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable. Dispositions of Properties During the three months ended March 31, 2019 , we sold one property, which was 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 $3.3 million from December 31, 2018 to March 31, 2019 . Future Dispositions of Real Estate As of March 31, 2019 , two of our tenants had exercised their options to repurchase the properties they are leasing for an aggregate of $8.6 million (the amount for one repurchase option is based on the exchange rate of the euro as of March 31, 2019 ), but there can be no assurance that such repurchases will be completed. At March 31, 2019 , these two properties had an aggregate asset carrying value of $6.5 million . Leases Operating Lease Income Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands): Three Months Ended March 31, 2019 Lease income — fixed $ 215,118 Lease income — variable (a) 21,263 Total operating lease income (b) $ 236,381 __________ (a) Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. (b) Excludes $26.6 million of interest income from direct financing leases that is included in Lease revenues in the consolidated statement of income. Scheduled Future Lease Payments Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable operating leases at March 31, 2019 are as follows (in thousands): Years Ending December 31, Total 2019 (remainder) $ 704,412 2020 933,380 2021 914,977 2022 880,940 2023 822,002 Thereafter 6,560,712 Total $ 10,816,423 Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable operating leases at December 31, 2018 are as follows (in thousands): Years Ending December 31, Total 2019 $ 920,044 2020 915,411 2021 896,083 2022 861,688 2023 802,509 Thereafter 6,151,480 Total $ 10,547,215 Lease Cost Certain information related to the total lease cost for operating leases for the three months ended March 31, 2019 is as follows (in thousands): Three Months Ended March 31, 2019 Fixed lease cost $ 3,814 Variable lease cost 136 Total lease cost $ 3,950 During the three months ended March 31, 2019 , we received sublease income totaling approximately $1.5 million , which is included in Lease revenues in the consolidated statement of income. Other Information Supplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands): Location on Consolidated Balance Sheets March 31, 2019 Operating ROU assets — land leases In-place lease intangible assets and other $ 113,708 Operating ROU assets — office leases Other assets, net 11,415 Total operating ROU assets $ 125,123 Operating lease liabilities Accounts payable, accrued expenses and other liabilities $ 92,351 Weighted-average remaining lease term — operating leases 36.7 years Weighted-average discount rate — operating leases 7.7 % Number of land lease arrangements 61 Number of office space arrangements 6 Lease term range (excluding extension options not reasonably certain of being exercised) 1 – 101 years Cash paid for operating lease liabilities included in Net cash provided by operating activities totaled $3.9 million for the three months ended March 31, 2019 . There are no land or office direct financing leases for which we are the lessee, therefore there are no related ROU assets or lease liabilities. Undiscounted Cash Flows A reconciliation of the undiscounted cash flows for operating leases recorded on the consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of March 31, 2019 is as follows (in thousands): Years Ending December 31, Total 2019 (remainder) $ 11,029 2020 14,946 2021 8,447 2022 7,591 2023 7,444 Thereafter 255,495 Total lease payments 304,952 Less: amount of lease payments representing interest (212,601 ) Present value of future lease payments/lease obligations $ 92,351 Scheduled future lease payments (excluding amounts paid directly by tenants) for the years subsequent to the year ended December 31, 2018 are: $14.5 million for 2019, $13.5 million for 2020, $7.9 million for 2021, $7.1 million for 2022, $7.0 million for 2023, and $246.7 million for the years thereafter. Land, Buildings and Improvements — Operating Properties At both March 31, 2019 and December 31, 2018 , Land, buildings and improvements attributable to operating properties consisted of our investments in 37 consolidated self-storage properties and two consolidated hotels. Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands): March 31, 2019 December 31, 2018 Land $ 102,478 $ 102,478 Buildings and improvements 365,494 363,572 Real estate under construction 4,343 4,620 Less: Accumulated depreciation (12,832 ) (10,234 ) $ 459,483 $ 460,436 Depreciation expense on our buildings and improvements attributable to operating properties was $2.8 million and $1.1 million for the three months ended March 31, 2019 and 2018 , respectively. For the three months ended March 31, 2019 , Operating property revenues totaling $16.0 million were comprised of $13.2 million in lease revenues and $2.8 million in other income (such as food and beverage revenue) from 37 consolidated self-storage properties and two consolidated hotels. For the three months ended March 31, 2018 , Operating property revenues totaling $7.2 million were comprised of $5.1 million in lease revenues and $2.1 million in other income from two consolidated hotels. We derive self-storage revenue primarily from rents received from customers who rent storage space under month-to-month leases for personal or business use. We derive hotel revenue primarily from room rentals, as well as food, beverage, and other services. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Mar. 31, 2019 | |
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, loans receivable, and deferred acquisition fees. Operating leases are not included in finance receivables. See Note 2 and Note 4 for information on ROU operating lease assets recognized in our consolidated balance sheets. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): March 31, 2019 December 31, 2018 Lease payments receivable $ 1,117,679 $ 1,160,977 Unguaranteed residual value 944,902 966,826 2,062,581 2,127,803 Less: unearned income (783,459 ) (821,588 ) $ 1,279,122 $ 1,306,215 Interest income from direct financing leases, which was included in Lease revenues in the consolidated financial statements, was $26.6 million and $17.2 million for the three months ended March 31, 2019 and 2018 , respectively. During the three months ended March 31, 2019 , we reclassified one property with a carrying value of $16.6 million from Net investments in direct financing leases to Land, buildings and improvements subject to operating leases in connection with a change in lease classification due to an extension of the underlying lease ( Note 4 ). During the three months ended March 31, 2019 , the U.S. dollar strengthened against the euro, resulting in a $5.5 million decrease in the carrying value of Net investments in direct financing leases from December 31, 2018 to March 31, 2019 . As of March 31, 2019 , we had exercised our option to sell four properties leased to the same tenant (which were accounted for as Net investments in direct financing leases) back to the tenant for $7.7 million . At March 31, 2019 , these properties had an aggregate asset carrying value of $6.4 million . These properties were sold in April 2019. Scheduled Future Lease Payments Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable direct financing leases at March 31, 2019 are as follows (in thousands): Years Ending December 31, Total 2019 (remainder) (a) $ 340,942 2020 96,592 2021 94,595 2022 85,254 2023 79,495 Thereafter 420,801 Total $ 1,117,679 Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable direct financing leases at December 31, 2018 are as follows (in thousands) Years Ending December 31, Total 2019 (a) $ 373,632 2020 98,198 2021 95,181 2022 85,801 2023 80,033 Thereafter 428,132 Total $ 1,160,977 __________ (a) Includes $250.0 million for a bargain purchase option. As of both March 31, 2019 and December 31, 2018 , The New York Times Company, a tenant at one of our properties, exercised its bargain purchase option to repurchase the property for $250.0 million in the fourth quarter of 2019. There can be no assurance that such repurchase will be completed. At March 31, 2019 , this property had an aggregate asset carrying value of $260.5 million . Loans Receivable At both March 31, 2019 and December 31, 2018 , we had four loans receivable related to a domestic investment with an aggregate carrying value of $57.8 million . In addition, at March 31, 2019 and December 31, 2018 , we had a loan receivable representing the expected future payments under a sales type lease with a carrying value of $9.4 million and $9.5 million , respectively. As of March 31, 2019 , the tenant at the property underlying this loan receivable had exercised its option to repurchase the property for $9.3 million , but there can be no assurance that such repurchase will be completed. Our loans receivable are included in Other assets, net in the consolidated financial statements. Earnings from our loans 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 CPA:18 – Global. A portion of this revenue is due in equal annual installments over three years . Unpaid deferred installments, including accrued interest, from CPA:18 – Global 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 March 31, 2019 and December 31, 2018 , none of the balances of our finance receivables were past due. Other than the lease extension noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the three months ended March 31, 2019 . 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 CPA:18 – Global is 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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 1 - 3 35 36 $ 1,108,250 $ 1,135,321 4 10 10 227,620 227,591 5 1 1 10,381 10,580 $ 1,346,251 $ 1,373,492 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
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 two years to 48 years . In-place lease intangibles, at cost are included in In-place lease intangible assets and other 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 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 and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. The following table presents a reconciliation of our goodwill (in thousands): Real Estate Investment Management Total Balance at December 31, 2018 $ 857,337 $ 63,607 $ 920,944 Foreign currency translation adjustments (1,928 ) — (1,928 ) CPA:17 Merger measurement period adjustments ( Note 3 ) (343 ) — (343 ) Balance at March 31, 2019 $ 855,066 $ 63,607 $ 918,673 Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): March 31, 2019 December 31, 2018 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 $ 19,115 $ (11,373 ) $ 7,742 $ 18,924 $ (10,672 ) $ 8,252 Trade name 3,975 (1,395 ) 2,580 3,975 (1,196 ) 2,779 23,090 (12,768 ) 10,322 22,899 (11,868 ) 11,031 Lease Intangibles: In-place lease 1,987,765 (541,360 ) 1,446,405 1,960,437 (496,096 ) 1,464,341 Above-market rent 922,427 (350,292 ) 572,135 925,797 (330,935 ) 594,862 Below-market ground lease (a) — — — 42,889 (2,367 ) 40,522 2,910,192 (891,652 ) 2,018,540 2,929,123 (829,398 ) 2,099,725 Indefinite-Lived Goodwill and Intangible Assets Goodwill 918,673 — 918,673 920,944 — 920,944 Below-market ground lease (a) — — — 6,302 — 6,302 918,673 — 918,673 927,246 — 927,246 Total intangible assets $ 3,851,955 $ (904,420 ) $ 2,947,535 $ 3,879,268 $ (841,266 ) $ 3,038,002 Finite-Lived Intangible Liabilities Below-market rent $ (262,430 ) $ 61,635 $ (200,795 ) $ (253,633 ) $ 57,514 $ (196,119 ) Above-market ground lease (a) — — — (15,961 ) 3,663 (12,298 ) (262,430 ) 61,635 (200,795 ) (269,594 ) 61,177 (208,417 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (279,141 ) $ 61,635 $ (217,506 ) $ (286,305 ) $ 61,177 $ (225,128 ) __________ (a) In connection with our adoption of ASU 2016-02 ( Note 2 ), in the first quarter of 2019, we prospectively reclassified below-market ground lease intangible assets and above-market ground lease intangible liabilities to be a component of ROU assets within In-place lease intangible assets and other in our consolidated balance sheets. As of December 31, 2018, below-market ground lease intangible assets were included in In-place lease intangible assets and other in the consolidated balance sheets, and above-market ground lease intangible liabilities were included in Below-market rent and other intangible liabilities, net in the consolidated balance sheets. Net amortization of intangibles, including the effect of foreign currency translation, was $69.4 million and $38.8 million for the three months ended March 31, 2019 and 2018 , 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 was included in Property expenses, excluding reimbursable tenant costs, prior to the reclassification of above-market ground lease and below-market ground lease intangibles to ROU assets in the first quarter of 2019, as described above and in Note 2 . |
Equity Investments in the Manag
Equity Investments in the Managed Programs and Real Estate | 3 Months Ended |
Mar. 31, 2019 | |
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 CPA:18 – Global and third parties, 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 March 31, 2019 2018 Distributions of Available Cash ( Note 3 ) $ 5,685 $ 10,502 Proportionate share of equity in earnings of equity investments in the Managed Programs 213 1,863 Amortization of basis differences on equity method investments in the Managed Programs (329 ) (398 ) Total equity in earnings of equity method investments in the Managed Programs 5,569 11,967 Equity in earnings of equity method investments in real estate 562 3,903 Amortization of basis differences on equity method investments in real estate (640 ) (545 ) Total equity in (losses) earnings of equity method investments in real estate (78 ) 3,358 Equity in earnings of equity method investments in the Managed Programs and real estate $ 5,491 $ 15,325 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 existing Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 CPA:18 – Global (a) 3.571 % 3.446 % $ 40,524 $ 39,600 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 (a) 3.271 % 3.062 % 40,945 38,600 CWI 1 operating partnership 0.015 % 0.015 % 186 186 CWI 2 (a) 3.039 % 2.807 % 27,505 25,200 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CESH (b) 2.430 % 2.430 % 4,032 3,495 $ 113,701 $ 107,590 __________ (a) During the three months ended March 31, 2019 , we received asset management revenue from the existing Managed REITs primarily in shares of their common stock, which increased our ownership percentage in each of the existing Managed REITs ( Note 3 ). (b) Investment is accounted for at fair value. CPA:17 – Global — 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 3 ). We received distributions from CPA:17 – Global during the three months ended March 31, 2018 of $2.4 million . We received distributions from our investment in the CPA:17 – Global operating partnership during the three months ended March 31, 2018 of $6.2 million ( Note 3 ). CPA:18 – Global — The c arrying value of our investment in CPA:18 – Global at March 31, 2019 includes asset management fees receivable, for which 55,419 shares of CPA:18 – Global Class A common stock were issued during the second quarter of 2019 . We received distributions from this investment during the three months ended March 31, 2019 and 2018 of $0.8 million and $0.6 million , respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the three months ended March 31, 2019 and 2018 of $1.8 million and $1.9 million , respectively ( Note 3 ). CWI 1 — The c arrying value of our investment in CWI 1 at March 31, 2019 includes asset management fees receivable, for which 117,857 shares of CWI 1 common stock were issued during the second quarter of 2019 . We received distributions from this investment during the three months ended March 31, 2019 and 2018 of $0.6 million and $0.4 million , respectively. We received distributions from our investment in the CWI 1 operating partnership during the three months ended March 31, 2019 and 2018 of $1.9 million and $1.0 million , respectively ( Note 3 ). CWI 2 — The carrying value of our investment in CWI 2 at March 31, 2019 includes asset management fees receivable, for which 82,861 shares of CWI 2 Class A common stock were issued during the second quarter of 2019 . We received distributions from this investment during the three months ended March 31, 2019 and 2018 of $0.4 million and $0.2 million , respectively. We received distributions from our investment in the CWI 2 operating partnership during the three months ended March 31, 2019 and 2018 of $1.9 million and $1.5 million , respectively ( Note 3 ). CESH — We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH on a one quarter lag; therefore, the balance of our equity method investment in CESH recorded as of March 31, 2019 is based on the estimated fair value of our equity method investment in CESH as of December 31, 2018 . We did not receive distributions from this investment during the three months ended March 31, 2019 or 2018 . At March 31, 2019 and December 31, 2018 , the aggregate unamortized basis differences on our equity investments in the Managed Programs were $38.1 million and $35.2 million , respectively. Interests in Other Unconsolidated Real Estate Investments We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with affiliates or third parties. 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 March 31, 2019 December 31, 2018 Johnson Self Storage Third Party 90% $ 72,187 $ 73,475 Kesko Senukai (a) Third Party 70% 51,074 52,432 Bank Pekao S.A. (a) CPA:18 – Global 50% 29,154 29,086 BPS Nevada, LLC (b) Third Party 15% 22,392 22,292 State Farm Automobile Co. CPA:18 – Global 50% 18,489 18,927 Apply Sørco AS (referred to as Apply) (c) (d) CPA:18 – Global 49% 9,937 7,483 Konzum d.d. (referred to as Agrokor) (a) CPA:18 – Global 20% 3,132 2,858 Beach House JV, LLC (e) Third Party N/A — 15,105 $ 206,365 $ 221,658 __________ (a) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (b) This investment was reported using the hypothetical liquidation at book value model, which may have been different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (c) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (d) During the first quarter of 2019, we identified measurement period adjustments that impacted the provisional accounting for this investment, which was acquired in the CPA:17 Merger on October 31, 2018 ( Note 3 ). As such, the CPA:17 Merger purchase price allocated to this jointly owned investment increased by approximately $5.2 million , of which our proportionate share was $2.6 million . (e) On February 27, 2019, we received a full repayment of our preferred equity interest in this investment totaling $15.0 million . As a result, this preferred equity interest is now retired. We received aggregate distributions of $3.4 million and $4.4 million from our other unconsolidated real estate investments for the three months ended March 31, 2019 and 2018 , respectively. At March 31, 2019 and December 31, 2018 , the aggregate unamortized basis differences on our unconsolidated real estate investments were $25.6 million and $23.7 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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 and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, 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 valuation of our derivative instruments (excluding stock warrants) is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments 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. Equity Investment in CESH — We have elected to account for our investment in CESH, 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. The fair value of our equity investment in CESH approximated its carrying value as of March 31, 2019 and December 31, 2018 . Investment in Shares of a Cold Storage Operator — We account for our investment in shares of a cold storage operator, which is included in Other assets, net in the consolidated financial statements, at fair value using valuation models that incorporated the following significant unobservable inputs: a 15.6 x multiple of a comparable public company and a 25% EBITDA growth rate. We classified this investment as Level 3 because it is not traded in an active market. During the first quarter of 2019, we identified measurement period adjustments that impacted the provisional accounting for this investment, which was acquired in the CPA:17 Merger on October 31, 2018 ( Note 3 ). As such, the CPA:17 Merger purchase price allocated to this investment decreased by approximately $3.0 million . The fair value of this investment approximated its carrying value, which was $113.3 million and $116.3 million at March 31, 2019 and December 31, 2018 , respectively. Investment in Shares of GCIF — We account for our investment in shares of Guggenheim Credit Income Fund (“GCIF”), which is included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 2 because we used a quoted price from an inactive market to determine its fair value. The fair value of our investment in shares of GCIF approximated its carrying value, which was $22.5 million and $23.6 million at March 31, 2019 and December 31, 2018 , respectively. 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. We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the three months ended March 31, 2019 or 2018 . 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, which are reported within Other comprehensive income . Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): March 31, 2019 December 31, 2018 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 3,513,268 $ 3,631,030 $ 3,554,470 $ 3,567,593 Non-recourse mortgages, net (a) (b) (d) 3 2,503,321 2,515,119 2,732,658 2,737,861 Loans receivable (d) 3 67,129 66,828 67,277 67,123 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $18.8 million and $19.7 million at March 31, 2019 and December 31, 2018 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.8 million at both March 31, 2019 and December 31, 2018 . (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $14.9 million and $15.8 million at March 31, 2019 and December 31, 2018 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $21.0 million and $21.8 million at March 31, 2019 and December 31, 2018 , 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 March 31, 2019 and December 31, 2018 . 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. We did not recognize any impairment charges during the three months ended March 31, 2019 . During the three months ended March 31, 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 the resulting 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. |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 North America, Europe, and Japan 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 derivatives designated and that qualify as cash flow hedges, the change in fair value of the derivative is recognized in Other comprehensive income until the hedged transaction affects earnings. Gains and losses on the cash flow hedges representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. Such gains and losses are recorded within Other gains and (losses) or Interest expense in our consolidated statements of income. The earnings recognition of excluded components is presented in the same line item as the hedged transactions. For derivatives designated and that qualify as a net investment hedge, the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive income into earnings (within Gain on sale of real estate, net, in our consolidated statements of income) when the hedged net investment is either sold or substantially liquidated. 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 March 31, 2019 and December 31, 2018 , 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 Derivative Assets Fair Value at Derivative Liabilities Fair Value at March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Foreign currency forward contracts Other assets, net $ 21,183 $ 22,520 $ — $ — Foreign currency collars Other assets, net 11,086 8,536 — — Interest rate swaps Other assets, net 724 1,435 — — Interest rate caps Other assets, net 8 56 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (4,565 ) (3,387 ) Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (606 ) (1,679 ) 33,001 32,547 (5,171 ) (5,066 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 5,500 5,500 — — Foreign currency forward contracts Other assets, net — 7,144 — — Interest rate swaps (a) Accounts payable, accrued expenses and other liabilities — — (294 ) (343 ) 5,500 12,644 (294 ) (343 ) Total derivatives $ 38,501 $ 45,191 $ (5,465 ) $ (5,409 ) __________ (a) These interest rate swaps do not qualify for hedge accounting; however, they do 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 Income (a) Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationships 2019 2018 Foreign currency collars $ 3,616 $ (6,149 ) Interest rate swaps (1,815 ) 1,006 Foreign currency forward contracts 1,119 (3,164 ) Interest rate caps (27 ) (7 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts — 403 Total $ 2,893 $ (7,911 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 Foreign currency forward contracts Other gains and (losses) $ 2,434 $ 1,182 Foreign currency collars Other gains and (losses) 1,088 407 Interest rate swaps and cap Interest expense (67 ) (211 ) Total $ 3,455 $ 1,378 __________ (a) Excludes net losses of $0.9 million and less than $0.1 million recognized on unconsolidated jointly owned investments for the three months ended March 31, 2019 and 2018 , respectively. (b) The changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income . Amounts reported in Other comprehensive income related to interest rate derivative contracts will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive 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 March 31, 2019 , we estimate that an additional $1.7 million and $13.0 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 March 31, 2019 2018 Foreign currency forward contracts Other gains and (losses) $ (230 ) $ (125 ) Foreign currency collars Other gains and (losses) 41 (237 ) Stock warrants Other gains and (losses) — 268 Interest rate swaps Other gains and (losses) — 5 Derivatives in Cash Flow Hedging Relationships Foreign currency forward contracts Other gains and (losses) (132 ) — Interest rate swaps Interest expense (114 ) 150 Foreign currency collars Other gains and (losses) 7 (46 ) Total $ (428 ) $ 15 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 generally seek long-term debt financing on a fixed-rate basis. However, from time to time, we or our investment partners have 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 caps that our consolidated subsidiaries had outstanding at March 31, 2019 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Fair Value at (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 20 199,605 USD $ (2,270 ) Interest rate swaps 3 64,706 EUR (1,571 ) Interest rate caps 5 155,841 EUR 4 Interest rate cap 1 75,000 USD 3 Interest rate cap 1 6,394 GBP 1 Not Designated as Hedging Instruments Interest rate swaps (b) 3 15,466 EUR (294 ) $ (4,127 ) __________ (a) Fair value amounts are based on the exchange rate of the euro or British pound sterling at March 31, 2019 , as applicable. (b) These interest rate swaps do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the underlying variable-rate debt. 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, and certain other currencies. In order to hedge certain of our foreign currency 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 March 31, 2019 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at March 31, 2019 Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 29 75,288 EUR $ 21,070 Foreign currency collars 55 193,000 EUR 6,717 Foreign currency collars 44 43,500 GBP 3,765 Foreign currency forward contracts 4 2,911 NOK 61 Foreign currency collars 3 2,000 NOK (1 ) Designated as Net Investment Hedging Instruments Foreign currency forward contract 1 2,468 NOK 52 Foreign currency collar 1 2,500 NOK (1 ) $ 31,663 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 March 31, 2019 . At March 31, 2019 , our total credit exposure and the maximum exposure to any single counterparty was $31.7 million and $14.9 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 March 31, 2019 , 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 $8.6 million and $7.3 million at March 31, 2019 and December 31, 2018 , respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at March 31, 2019 or December 31, 2018 , we could have been required to settle our obligations under these agreements at their aggregate termination value of $8.9 million and $7.6 million , respectively. Net Investment Hedges We have completed four offerings 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, 2.250% Senior Notes due 2026, and 2.125% Senior Notes due 2027 ( Note 10 ). In addition, at March 31, 2019 , the amounts borrowed in euro and Japanese yen outstanding under our Unsecured Revolving Credit Facility ( Note 10 ) were €49.0 million and ¥2.4 billion , respectively. These borrowings 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 income as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our borrowings under our euro-denominated senior notes and changes in the value of our euro and Japanese yen borrowings under our Unsecured Revolving Credit Facility, related to changes in the spot rates, will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive income as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $44.1 million and $(40.0) million for the three months ended March 31, 2019 and 2018 , respectively. At March 31, 2019 , we also had foreign currency forward contracts that were designated as net investment hedges, as discussed in “Derivative Financial Instruments” above. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Unsecured Credit Facility On February 22, 2017, we entered into the Third Amended and Restated Credit Facility (the “Credit Agreement”), which provided for a $1.5 billion unsecured revolving credit facility (our “Unsecured Revolving Credit Facility”), a €236.3 million term loan, and a $100.0 million delayed draw term loan, which we refer to collectively as the “Senior Unsecured Credit Facility.” 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. 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 permits borrowing under the Unsecured Revolving Credit Facility in certain currencies other than U.S. dollars. At March 31, 2019 , our Unsecured Revolving Credit Facility had available capacity of $1.4 billion . We incur an annual 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 March 31, 2019 Principal Outstanding Balance at Senior Unsecured Credit Facility March 31, 2019 December 31, 2018 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in euros (b) EURIBOR + 1.00% 2/22/2021 $ 55,052 $ 69,273 Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 30,000 — Unsecured Revolving Credit Facility — borrowing in Japanese yen JPY LIBOR + 1.00% 2/22/2021 21,847 22,290 $ 106,899 $ 91,563 __________ (a) The applicable interest rate at March 31, 2019 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) EURIBOR means Euro Interbank Offered Rate. Senior Unsecured Notes As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $3.5 billion at March 31, 2019 (the “Senior Unsecured Notes”). Interest on the Senior Unsecured Notes is payable annually in arrears for our euro-denominated senior notes and semi-annually for U.S. dollar-denominated senior 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 March 31, 2019 (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 March 31, 2019 December 31, 2018 2.0% Senior Notes due 2023 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 561.7 $ 572.5 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 561.7 572.5 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 2.250% Senior Notes due 2026 10/9/2018 € 500.0 99.252 % $ 4.3 2.361 % 2.250 % 4/9/2026 561.7 572.5 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 561.7 572.5 $ 3,546.8 $ 3,590.0 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $18.6 million and $19.7 million , and unamortized discount totaling $14.9 million and $15.8 million , at March 31, 2019 and December 31, 2018 , 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. 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 March 31, 2019 . 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 March 31, 2019 , our non-recourse mortgage notes payable bore interest at fixed annual rates ranging from 1.9% to 9.4% and variable contractual annual rates ranging from 1.3% to 8.5% , with maturity dates ranging from August 2019 to September 2031 . During the three months ended March 31, 2019 , we assumed a non-recourse mortgage loan with an outstanding principal balance of $20.2 million in connection with the acquisition of a property ( Note 4 ). This mortgage loan has a fixed annual interest rate of 4.7% and a maturity date of July 6, 2024 . A non-recourse mortgage loan encumbering six vacant properties that were acquired in the CPA:17 Merger, with an outstanding principal balance of approximately $57.2 million , was in default as of both March 31, 2019 and December 31, 2018 . The former tenant at the properties declared bankruptcy in 2018 and vacated the properties prior to the CPA:17 Merger. This loan currently bears interest at 4.4% , with a default interest rate of 5.0% , and is collateralized by the six properties, which we wholly-own. As of March 31, 2019 , the carrying value of the properties totaled $42.9 million and the carrying value of the mortgage loan was approximately $41.9 million . Repayments During the Three Months Ended March 31, 2019 During the three months ended March 31, 2019 , we (i) prepaid non-recourse mortgage loans totaling $199.6 million and (ii) repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $18.8 million . The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 5.0% . Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable. We primarily used proceeds from issuances of common stock under our ATM Program ( Note 12 ) during the three months ended March 31, 2019 to fund these prepayments. See Note 16 , Subsequent Events for mortgage loan prepayments subsequent to March 31, 2019 and through the date of this Report. Repayments During the Three Months Ended March 31, 2018 During the three months ended March 31, 2018 , we (i) prepaid non-recourse mortgage loans totaling $164.9 million , including $12.5 million encumbering properties that were disposed of during the three months ended March 31, 2018 , and (ii) repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $9.5 million . The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 2.5% . Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable. Foreign Currency Exchange Rate Impact During the three months ended March 31, 2019 , the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $56.3 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2018 to March 31, 2019 . Scheduled Debt Principal Payments Scheduled debt principal payments as of March 31, 2019 are as follows (in thousands): Years Ending December 31, Total (a) 2019 (remainder) $ 82,410 2020 585,697 2021 676,791 2022 586,005 2023 922,665 Thereafter through 2031 3,325,412 Total principal payments 6,178,980 Unamortized discount, net (b) (35,913 ) Unamortized deferred financing costs (19,579 ) Total $ 6,123,488 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2019 . (b) Represents the unamortized discount, net, of $21.0 million in aggregate primarily resulting from the assumption of property-level debt in connection with business combinations, including the CPA:17 Merger ( Note 3 ), and the unamortized discount on the Senior Unsecured Notes of $14.9 million in aggregate. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At March 31, 2019 , 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. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 3 Months Ended |
Mar. 31, 2019 | |
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 2018 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 three months ended March 31, 2019 . During the three months ended March 31, 2019 and 2018 , we recorded stock-based compensation expense of $4.2 million and $8.2 million , respectively. Approximately $4.2 million of the stock-based compensation expense recorded during the three months ended March 31, 2018 was attributable to the modification of restricted share units (“RSUs”) and performance share units (“PSUs”) in connection with the retirement of our former chief executive officer in February 2018. Restricted and Conditional Awards Nonvested restricted share awards (“RSAs”), RSUs, and PSUs at March 31, 2019 and changes during the three months ended March 31, 2019 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2019 277,002 $ 62.41 331,216 $ 78.82 Granted (a) 132,743 69.86 84,006 92.16 Vested (b) (133,469 ) 61.14 (403,701 ) 74.04 Forfeited (1,834 ) 64.72 — — Adjustment (c) — — 301,426 77.95 Nonvested at March 31, 2019 (d) 274,442 $ 66.62 312,947 $ 80.96 __________ (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 three months ended March 31, 2019 , we used a risk-free interest rate of 2.5% , an expected volatility rate of 15.8% , and assumed a dividend yield of zero . (b) The grant date fair value of shares vested during the three months ended March 31, 2019 was $38.1 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 March 31, 2019 and December 31, 2018 , we had an obligation to issue 893,713 and 867,871 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $37.3 million and $35.8 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 March 31, 2019 to reflect the number of shares expected to be issued when the PSUs vest. (d) At March 31, 2019 , total unrecognized compensation expense related to these awards was approximately $33.0 million , with an aggregate weighted-average remaining term of 2.3 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 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 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 March 31, 2019 2018 Net income attributable to W. P. Carey $ 68,494 $ 65,274 Net income attributable to nonvested participating RSUs (19 ) (85 ) Net income — basic and diluted $ 68,475 $ 65,189 Weighted-average shares outstanding — basic 167,234,121 108,057,940 Effect of dilutive securities 200,619 153,996 Weighted-average shares outstanding — diluted 167,434,740 108,211,936 For the three months ended March 31, 2019 and 2018 , there were no potentially dilutive securities excluded from the computation of diluted earnings per share. ATM Program On February 27, 2019, 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 $500.0 million , through an ATM Program with a consortium of banks acting as sales agents. On that date, we also terminated a prior ATM Program that was established on March 1, 2017. During the three months ended March 31, 2019 , we issued 4,053,623 shares of our common stock under our current and former ATM Programs at a weighted-average price of $76.17 per share for net proceeds of $303.8 million . Proceeds from issuances of common stock under our ATM Program during the three months ended March 31, 2019 were used primarily to prepay certain non-recourse mortgage loans ( Note 10 ) and to fund acquisitions. During the three months ended March 31, 2018 , we did not issue any shares of our common stock under our prior ATM Program. As of March 31, 2019 , $248.8 million remained available for issuance under our current ATM Program. See Note 16 , Subsequent Events for issuances under our ATM Program subsequent to March 31, 2019 and through the date of this Report. 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 March 31, 2019 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 14,102 $ (269,091 ) $ (7 ) $ (254,996 ) Other comprehensive income before reclassifications 5,404 (173 ) 537 5,768 Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (3,522 ) — — (3,522 ) Interest expense 67 — — 67 Total (3,455 ) — — (3,455 ) Net current period other comprehensive income 1,949 (173 ) 537 2,313 Ending balance $ 16,051 $ (269,264 ) $ 530 $ (252,683 ) Three Months Ended March 31, 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 income before reclassifications (7,014 ) 18,516 428 11,930 Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (1,589 ) — — (1,589 ) Interest expense 211 — — 211 Total (1,378 ) — — (1,378 ) Net current period other comprehensive income (8,392 ) 18,516 428 10,552 Net current period other comprehensive gain attributable to noncontrolling interests 3 (3,782 ) — (3,779 ) Ending balance $ 783 $ (230,288 ) $ 267 $ (229,238 ) See Note 9 for additional information on our derivatives activity recognized within Other comprehensive income for the periods presented. Dividends Declared During the first quarter of 2019 , our Board declared a quarterly dividend of $1.032 per share, which was paid on April 15, 2019 to stockholders of record as of March 29, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three months ended March 31, 2019 and 2018 . 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 months ended March 31, 2019 and 2018 . Current income tax benefit (expense) was $0.3 million and $(6.2) million for the three months ended March 31, 2019 and 2018 , respectively. Benefit from income taxes for the three months ended March 31, 2019 included a current tax benefit of approximately $6.3 million due to a change in tax position for state and local taxes. 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. Benefit from income taxes included deferred income tax benefit of $1.8 million and $12.2 million for the three months ended March 31, 2019 and 2018 , respectively. Benefit from income taxes for the three months ended March 31, 2018 included a deferred tax benefit of approximately $6.2 million as a result of the release of a deferred tax liability relating to a property holding company that was no longer required due to a change in tax classification. |
Property Dispositions
Property Dispositions | 3 Months Ended |
Mar. 31, 2019 | |
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. 2019 — During the three months ended March 31, 2019 , we sold one property for proceeds of $4.9 million , net of selling costs, and recognized a net gain on the sale of $0.9 million . 2018 — During the three months ended March 31, 2018 , we sold five properties for total proceeds of $35.7 million , net of selling costs, and recognized a net gain on these sales totaling $6.7 million (inclusive of income taxes totaling less than $0.1 million recognized upon sale). |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Revenues Lease revenues $ 262,939 $ 169,432 Operating property revenues (a) 15,996 7,218 Lease termination income and other 3,270 942 282,205 177,592 Operating Expenses Depreciation and amortization 111,413 64,920 General and administrative 15,188 12,065 Reimbursable tenant costs 13,171 6,219 Operating property expenses 10,594 5,670 Property expenses, excluding reimbursable tenant costs 9,912 4,229 Stock-based compensation expense 2,800 4,306 Merger and other expenses 146 (37 ) Impairment charges — 4,790 163,224 102,162 Other Income and Expenses Interest expense (61,313 ) (38,074 ) Other gains and (losses) 970 (2,887 ) Gain on sale of real estate, net 933 6,732 Equity in (losses) earnings of equity method investments in real estate (78 ) 3,358 (59,488 ) (30,871 ) Income before income taxes 59,493 44,559 (Provision for) benefit from income taxes (6,159 ) 3,533 Net Income from Real Estate 53,334 48,092 Net loss (income) attributable to noncontrolling interests 74 (2,792 ) Net Income from Real Estate Attributable to W. P. Carey $ 53,408 $ 45,300 __________ (a) Operating property revenues from our hotels include (i) $3.9 million for the three months ended March 31, 2018 generated from a hotel in Memphis, Tennessee, which was sold in April 2018, (ii) $3.4 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively, generated from a hotel in Bloomington, Minnesota, and (iii) $2.9 million for the three months ended March 31, 2019 , generated from a hotel in Miami, Florida, which was acquired in the CPA:17 Merger ( Note 3 ). Investment Management Three Months Ended March 31, 2019 2018 Revenues Asset management revenue $ 9,732 $ 16,985 Reimbursable costs from affiliates 3,868 5,304 Structuring and other advisory revenue 2,518 1,929 16,118 24,218 Operating Expenses General and administrative 6,097 6,518 Reimbursable costs from affiliates 3,868 5,304 Subadvisor fees 2,202 2,032 Stock-based compensation expense 1,365 3,913 Depreciation and amortization 966 1,037 14,498 18,804 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 5,569 11,967 Other gains and (losses) (15 ) 124 5,554 12,091 Income before income taxes 7,174 17,505 Benefit from income taxes 8,288 2,469 Net Income from Investment Management 15,462 19,974 Net income attributable to noncontrolling interests (376 ) — Net Income from Investment Management Attributable to W. P. Carey $ 15,086 $ 19,974 Total Company Three Months Ended March 31, 2019 2018 Revenues $ 298,323 $ 201,810 Operating expenses 177,722 120,966 Other income and (expenses) (53,934 ) (18,780 ) Benefit from income taxes 2,129 6,002 Net income attributable to noncontrolling interests (302 ) (2,792 ) Net income attributable to W. P. Carey $ 68,494 $ 65,274 Total Assets at March 31, 2019 December 31, 2018 Real Estate $ 13,899,667 $ 13,941,963 Investment Management 256,235 241,076 Total Company $ 14,155,902 $ 14,183,039 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Issuances Under our ATM Program Since March 31, 2019 and through the date of this Report, we issued 760,169 shares of our common stock under our ATM Program at a weighted-average price of $78.27 per share for net proceeds of approximately $59 million . As of the date of this Report, approximately $189.3 million remained available for issuance under our ATM Program ( Note 12 ). Mortgage Loan Prepayments Since March 31, 2019 and through the date of this Report, we prepaid non-recourse mortgage loans with an aggregate principal balance of approximately $185.0 million and a weighted-average interest rate of 5.0% , primarily using proceeds from issuances of common stock under our ATM Program ( Note 12 ). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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 (“GAAP”). |
Basis of Consolidation | Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. 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 (“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. During the three months ended March 31, 2019 , we received a full repayment of our preferred equity interest in an unconsolidated VIE entity. As a result, this preferred equity interest is now retired and is no longer considered a VIE ( Note 7 ). At March 31, 2019 and December 31, 2018 , we considered 31 and 32 entities to be VIEs, respectively, of which we consolidated 24 as of both period ends, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): March 31, 2019 December 31, 2018 Land, buildings and improvements $ 798,667 $ 781,347 Net investments in direct financing leases 300,896 305,493 In-place lease intangible assets and other 99,620 84,870 Above-market rent intangible assets 43,763 45,754 Accumulated depreciation and amortization (171,527 ) (164,942 ) Total assets 1,137,418 1,112,984 Non-recourse mortgages, net $ 149,701 $ 157,955 Total liabilities 215,443 227,461 At March 31, 2019 and December 31, 2018 , our seven and eight unconsolidated VIEs, respectively, included our interests in five and six unconsolidated real estate investments, respectively, which we account for under the equity method of accounting, and two unconsolidated entities, which we accounted for at fair value. 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 March 31, 2019 and December 31, 2018 , the net carrying amount of our investments in these entities was $281.1 million and $301.6 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. 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 March 31, 2019 , none of our equity investments had carrying values below zero. |
New Accounting Policies | Recent Accounting Pronouncements Pronouncements Adopted as of March 31, 2019 In February 2016, the Financial Accounting Standards Board (“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, are capitalized and recorded on the balance sheet. For lessors, however, the new standard remains generally consistent with existing guidance, but has been updated to align with certain changes to the lessee model and ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). We adopted this guidance for our interim and annual periods beginning January 1, 2019 using the modified retrospective method, applying the transition provisions at the beginning of the period of adoption rather than at the beginning of the earliest comparative period presented. We elected the package of practical expedients as permitted under the transition guidance, which allowed us to not reassess whether arrangements contain leases, lease classification, and initial direct costs. The adoption of the lease standard did not result in a cumulative effect adjustment recognized in the opening balance of retained earnings as of January 1, 2019. • As a Lessee : we recognized $115.6 million of land lease right-of-use (“ROU”) assets, $12.7 million of office lease ROU assets, and $95.3 million of corresponding lease liabilities for certain operating office and land lease arrangements for which we were the lessee on January 1, 2019, which included reclassifying below-market ground lease intangible assets, above-market ground lease intangible liabilities, prepaid rent, and deferred rent as a component of the ROU asset (a net reclassification of $33.0 million ). See Note 4 for additional disclosures on the presentation of these amounts in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. We determine if an arrangement contains a lease at contract inception and determine the classification of the lease at commencement. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We do not include renewal options in the lease term when calculating the lease liability unless we are reasonably certain we will exercise the option. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our variable lease payments consist of increases as a result of the Consumer Price Index (“CPI”) or other comparable indices, taxes, and maintenance costs. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. The implicit rate within our operating leases is generally not determinable and, as a result, we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using estimated baseline mortgage rates. These baseline rates are determined based on a review of current mortgage debt market activity for benchmark securities across domestic and international markets, utilizing a yield curve. The rates are then adjusted for various factors, including level of collateralization and lease term. • As a Lessor : a practical expedient allows lessors to combine non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues), if both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component, and the lease component would otherwise be classified as an operating lease. We elected the practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred. Under ASU 2016-02, lessors are allowed to only capitalize incremental direct leasing costs. Historically, we have not capitalized internal legal and leasing costs incurred, and, as a result, will not be impacted by this change. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 makes more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and eliminates the requirements to separately measure and disclose 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. We adopted this guidance for our interim and annual periods beginning January 1, 2019. The adoption of this standard impacted our consolidated financial statements for both cash flow hedges and net investment hedges. Changes in the fair value of our hedging instruments are no longer separated into effective and ineffective portions. The entire change in the fair value of these hedging instruments included in the assessment of effectiveness is now recorded in Accumulated other comprehensive loss. The impact to our consolidated financial statements as a result of these changes was not material. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees, which will align the accounting for such payments to nonemployees with the existing requirements for share-based payments granted to employees (with certain exceptions). These share-based payments will now be measured at the grant-date fair value of the equity instrument issued. We adopted this guidance for our interim and annual periods beginning January 1, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. Pronouncements to be Adopted after March 31, 2019 In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating 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. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. 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. |
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 was included in Property expenses, excluding reimbursable tenant costs, prior to the reclassification of above-market ground lease and below-market ground lease intangibles to ROU assets in the first quarter of 2019, as described above and in Note 2 . We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from two years to 48 years . In-place lease intangibles, at cost are included in In-place lease intangible assets and other 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 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 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 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 from the numerator and such nonvested shares in the denominator. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 our consolidated balance sheets (in thousands): March 31, 2019 December 31, 2018 Land, buildings and improvements $ 798,667 $ 781,347 Net investments in direct financing leases 300,896 305,493 In-place lease intangible assets and other 99,620 84,870 Above-market rent intangible assets 43,763 45,754 Accumulated depreciation and amortization (171,527 ) (164,942 ) Total assets 1,137,418 1,112,984 Non-recourse mortgages, net $ 149,701 $ 157,955 Total liabilities 215,443 227,461 |
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): March 31, 2019 December 31, 2018 Cash and cash equivalents $ 243,325 $ 217,644 Restricted cash (a) 62,354 206,419 Total cash and cash equivalents and restricted cash $ 305,679 $ 424,063 __________ (a) Restricted cash is included within Other assets, net in our consolidated balance sheets. The amount as of December 31, 2018 includes $145.7 million of proceeds from the sale of a portfolio of Australian properties in December 2018. These funds were transferred from a restricted cash account to us in January 2019. |
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): March 31, 2019 December 31, 2018 Cash and cash equivalents $ 243,325 $ 217,644 Restricted cash (a) 62,354 206,419 Total cash and cash equivalents and restricted cash $ 305,679 $ 424,063 __________ (a) Restricted cash is included within Other assets, net in our consolidated balance sheets. The amount as of December 31, 2018 includes $145.7 million of proceeds from the sale of a portfolio of Australian properties in December 2018. These funds were transferred from a restricted cash account to us in January 2019. |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Maturity Date at March 31, 2019 Maximum Loan Amount Authorized at March 31, 2019 Principal Outstanding Balance at (a) Managed Program March 31, 2019 December 31, 2018 CWI 1 (b) (c) (d) LIBOR + 1.00% 6/30/2019 $ 65,802 $ 41,637 $ 41,637 CESH (c) LIBOR + 1.00% 5/31/2020 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 $ 56,098 __________ (a) Amounts exclude accrued interest of $3.2 million and $2.7 million at March 31, 2019 and December 31, 2018 , respectively. (b) Maturity date does not take into account extension option. (c) LIBOR means London Interbank Offered Rate. (d) On April 24, 2019, CWI 1 borrowed an additional $5.0 million under its line of credit with us. The following tables present a summary of revenue earned from the Managed Programs for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended March 31, 2019 2018 Asset management revenue (a) $ 9,732 $ 16,985 Distributions of Available Cash 5,685 10,502 Reimbursable costs from affiliates (a) 3,868 5,304 Structuring and other advisory revenue (a) 2,518 1,929 Interest income on deferred acquisition fees and loans to affiliates (b) 520 553 $ 22,323 $ 35,273 Three Months Ended March 31, 2019 2018 CPA:17 – Global (c) $ — $ 15,784 CPA:18 – Global 7,961 6,887 CWI 1 7,501 6,979 CWI 2 5,746 5,037 CESH 1,115 586 $ 22,323 $ 35,273 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Other gains and (losses) in the consolidated statements of income. (c) We no longer earn revenue from CPA:17 – Global following the completion of the CPA:17 Merger on October 31, 2018 ( Note 1 ). |
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): March 31, 2019 December 31, 2018 Short-term loans to affiliates, including accrued interest $ 59,312 $ 58,824 Deferred acquisition fees receivable, including accrued interest 6,704 8,697 Reimbursable costs 2,643 3,227 Asset management fees receivable 1,653 563 Accounts receivable 997 1,425 Current acquisition fees receivable 168 2,106 $ 71,477 $ 74,842 |
Schedule of Related Party Fees | The following table presents a summary of our asset management fee arrangements with the existing Managed Programs: Managed Program Rate Payable Description 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 50% in cash and 50% in shares of its Class A common stock for 2019; payable in shares of its Class A common stock for 2018 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 2019 and 2018 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 2019 and 2018 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 CESH 1.0% In cash Based on gross assets at fair value The existing Managed Programs 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: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 CPA:18 – Global based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and personnel costs are capped at 1.0% of CPA:18 – Global’s pro rata lease revenues for both 2019 and 2018; 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 CESH In cash Actual expenses incurred The following table presents a summary of our structuring fee arrangements with the existing Managed Programs: Managed Program Rate Payable Description 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 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 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 CESH 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 |
Land, Buildings and Improveme_2
Land, Buildings and Improvements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of Land, Building and Improvements | Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands): March 31, 2019 December 31, 2018 Land $ 102,478 $ 102,478 Buildings and improvements 365,494 363,572 Real estate under construction 4,343 4,620 Less: Accumulated depreciation (12,832 ) (10,234 ) $ 459,483 $ 460,436 Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): March 31, 2019 December 31, 2018 Land $ 1,780,858 $ 1,772,099 Buildings and improvements 7,114,453 6,945,513 Real estate under construction 28,800 63,114 Less: Accumulated depreciation (777,458 ) (724,550 ) $ 8,146,653 $ 8,056,176 |
Operating Lease Income | Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands): Three Months Ended March 31, 2019 Lease income — fixed $ 215,118 Lease income — variable (a) 21,263 Total operating lease income (b) $ 236,381 __________ (a) Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. (b) Excludes $26.6 million of interest income from direct financing leases that is included in Lease revenues in the consolidated statement of income. |
Schedule of Future Minimum Rents | Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable operating leases at March 31, 2019 are as follows (in thousands): Years Ending December 31, Total 2019 (remainder) $ 704,412 2020 933,380 2021 914,977 2022 880,940 2023 822,002 Thereafter 6,560,712 Total $ 10,816,423 |
Schedule of Future Lease Payments - Before Adoption | Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable operating leases at December 31, 2018 are as follows (in thousands): Years Ending December 31, Total 2019 $ 920,044 2020 915,411 2021 896,083 2022 861,688 2023 802,509 Thereafter 6,151,480 Total $ 10,547,215 |
Lease Cost | Certain information related to the total lease cost for operating leases for the three months ended March 31, 2019 is as follows (in thousands): Three Months Ended March 31, 2019 Fixed lease cost $ 3,814 Variable lease cost 136 Total lease cost $ 3,950 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands): Location on Consolidated Balance Sheets March 31, 2019 Operating ROU assets — land leases In-place lease intangible assets and other $ 113,708 Operating ROU assets — office leases Other assets, net 11,415 Total operating ROU assets $ 125,123 Operating lease liabilities Accounts payable, accrued expenses and other liabilities $ 92,351 Weighted-average remaining lease term — operating leases 36.7 years Weighted-average discount rate — operating leases 7.7 % Number of land lease arrangements 61 Number of office space arrangements 6 Lease term range (excluding extension options not reasonably certain of being exercised) 1 – 101 years |
Undiscounted Cash Flows - Operating Lease | A reconciliation of the undiscounted cash flows for operating leases recorded on the consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of March 31, 2019 is as follows (in thousands): Years Ending December 31, Total 2019 (remainder) $ 11,029 2020 14,946 2021 8,447 2022 7,591 2023 7,444 Thereafter 255,495 Total lease payments 304,952 Less: amount of lease payments representing interest (212,601 ) Present value of future lease payments/lease obligations $ 92,351 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Capital Leases Net Investment In Direct Financing Leases | Net investments in direct financing leases is summarized as follows (in thousands): March 31, 2019 December 31, 2018 Lease payments receivable $ 1,117,679 $ 1,160,977 Unguaranteed residual value 944,902 966,826 2,062,581 2,127,803 Less: unearned income (783,459 ) (821,588 ) $ 1,279,122 $ 1,306,215 |
Schedule of Future Lease Payments | (a) Includes $250.0 million for a bargain purchase option. As of both March 31, 2019 and December 31, 2018 , The New York Times Company, a tenant at one of our properties, exercised its bargain purchase option to repurchase the property for $250.0 million in the fourth quarter of 2019. There can be no assurance that such repurchase will be completed. At March 31, 2019 , this property had an aggregate asset carrying value of $260.5 million . Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable direct financing leases at March 31, 2019 are as follows (in thousands): Years Ending December 31, Total 2019 (remainder) (a) $ 340,942 2020 96,592 2021 94,595 2022 85,254 2023 79,495 Thereafter 420,801 Total $ 1,117,679 |
Schedule of Lease Payments - Before Adoption | Scheduled future lease payments, exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments, under non-cancelable direct financing leases at December 31, 2018 are as follows (in thousands) Years Ending December 31, Total 2019 (a) $ 373,632 2020 98,198 2021 95,181 2022 85,801 2023 80,033 Thereafter 428,132 Total $ 1,160,977 __________ (a) Includes $250.0 million for a bargain purchase option. As of both March 31, 2019 and December 31, 2018 , The New York Times Company, a tenant at one of our properties, exercised its bargain purchase option to repurchase the property for $250.0 million in the fourth quarter of 2019. There can be no assurance that such repurchase will be completed. At March 31, 2019 , this property had an aggregate asset carrying value of $260.5 million . |
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 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 1 - 3 35 36 $ 1,108,250 $ 1,135,321 4 10 10 227,620 227,591 5 1 1 10,381 10,580 $ 1,346,251 $ 1,373,492 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule of Reconcliation Goodwill | The following table presents a reconciliation of our goodwill (in thousands): Real Estate Investment Management Total Balance at December 31, 2018 $ 857,337 $ 63,607 $ 920,944 Foreign currency translation adjustments (1,928 ) — (1,928 ) CPA:17 Merger measurement period adjustments ( Note 3 ) (343 ) — (343 ) Balance at March 31, 2019 $ 855,066 $ 63,607 $ 918,673 |
Schedule Of Intangible Assets And Goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): March 31, 2019 December 31, 2018 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 $ 19,115 $ (11,373 ) $ 7,742 $ 18,924 $ (10,672 ) $ 8,252 Trade name 3,975 (1,395 ) 2,580 3,975 (1,196 ) 2,779 23,090 (12,768 ) 10,322 22,899 (11,868 ) 11,031 Lease Intangibles: In-place lease 1,987,765 (541,360 ) 1,446,405 1,960,437 (496,096 ) 1,464,341 Above-market rent 922,427 (350,292 ) 572,135 925,797 (330,935 ) 594,862 Below-market ground lease (a) — — — 42,889 (2,367 ) 40,522 2,910,192 (891,652 ) 2,018,540 2,929,123 (829,398 ) 2,099,725 Indefinite-Lived Goodwill and Intangible Assets Goodwill 918,673 — 918,673 920,944 — 920,944 Below-market ground lease (a) — — — 6,302 — 6,302 918,673 — 918,673 927,246 — 927,246 Total intangible assets $ 3,851,955 $ (904,420 ) $ 2,947,535 $ 3,879,268 $ (841,266 ) $ 3,038,002 Finite-Lived Intangible Liabilities Below-market rent $ (262,430 ) $ 61,635 $ (200,795 ) $ (253,633 ) $ 57,514 $ (196,119 ) Above-market ground lease (a) — — — (15,961 ) 3,663 (12,298 ) (262,430 ) 61,635 (200,795 ) (269,594 ) 61,177 (208,417 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (279,141 ) $ 61,635 $ (217,506 ) $ (286,305 ) $ 61,177 $ (225,128 ) __________ (a) In connection with our adoption of ASU 2016-02 ( Note 2 ), in the first quarter of 2019, we prospectively reclassified below-market ground lease intangible assets and above-market ground lease intangible liabilities to be a component of ROU assets within In-place lease intangible assets and other in our consolidated balance sheets. As of December 31, 2018, below-market ground lease intangible assets were included in In-place lease intangible assets and other in the consolidated balance sheets, and above-market ground lease intangible liabilities were included in Below-market rent and other intangible liabilities, net in the consolidated balance sheets. |
Equity Investments in the Man_2
Equity Investments in the Managed Programs and Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Distributions of Available Cash ( Note 3 ) $ 5,685 $ 10,502 Proportionate share of equity in earnings of equity investments in the Managed Programs 213 1,863 Amortization of basis differences on equity method investments in the Managed Programs (329 ) (398 ) Total equity in earnings of equity method investments in the Managed Programs 5,569 11,967 Equity in earnings of equity method investments in real estate 562 3,903 Amortization of basis differences on equity method investments in real estate (640 ) (545 ) Total equity in (losses) earnings of equity method investments in real estate (78 ) 3,358 Equity in earnings of equity method investments in the Managed Programs and real estate $ 5,491 $ 15,325 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 March 31, 2019 December 31, 2018 Johnson Self Storage Third Party 90% $ 72,187 $ 73,475 Kesko Senukai (a) Third Party 70% 51,074 52,432 Bank Pekao S.A. (a) CPA:18 – Global 50% 29,154 29,086 BPS Nevada, LLC (b) Third Party 15% 22,392 22,292 State Farm Automobile Co. CPA:18 – Global 50% 18,489 18,927 Apply Sørco AS (referred to as Apply) (c) (d) CPA:18 – Global 49% 9,937 7,483 Konzum d.d. (referred to as Agrokor) (a) CPA:18 – Global 20% 3,132 2,858 Beach House JV, LLC (e) Third Party N/A — 15,105 $ 206,365 $ 221,658 __________ (a) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (b) This investment was reported using the hypothetical liquidation at book value model, which may have been different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (c) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (d) During the first quarter of 2019, we identified measurement period adjustments that impacted the provisional accounting for this investment, which was acquired in the CPA:17 Merger on October 31, 2018 ( Note 3 ). As such, the CPA:17 Merger purchase price allocated to this jointly owned investment increased by approximately $5.2 million , of which our proportionate share was $2.6 million . (e) On February 27, 2019, we received a full repayment of our preferred equity interest in this investment totaling $15.0 million . As a result, this preferred equity interest is now retired. The following table sets forth certain information about our investments in the existing Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 CPA:18 – Global (a) 3.571 % 3.446 % $ 40,524 $ 39,600 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 (a) 3.271 % 3.062 % 40,945 38,600 CWI 1 operating partnership 0.015 % 0.015 % 186 186 CWI 2 (a) 3.039 % 2.807 % 27,505 25,200 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CESH (b) 2.430 % 2.430 % 4,032 3,495 $ 113,701 $ 107,590 __________ (a) During the three months ended March 31, 2019 , we received asset management revenue from the existing Managed REITs primarily in shares of their common stock, which increased our ownership percentage in each of the existing Managed REITs ( Note 3 ). (b) Investment is accounted for at fair value. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Other Financial Instruments In Carrying Values And Fair Values | Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): March 31, 2019 December 31, 2018 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 3,513,268 $ 3,631,030 $ 3,554,470 $ 3,567,593 Non-recourse mortgages, net (a) (b) (d) 3 2,503,321 2,515,119 2,732,658 2,737,861 Loans receivable (d) 3 67,129 66,828 67,277 67,123 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $18.8 million and $19.7 million at March 31, 2019 and December 31, 2018 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.8 million at both March 31, 2019 and December 31, 2018 . (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $14.9 million and $15.8 million at March 31, 2019 and December 31, 2018 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $21.0 million and $21.8 million at March 31, 2019 and December 31, 2018 , 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) | 3 Months Ended |
Mar. 31, 2019 | |
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 Derivative Assets Fair Value at Derivative Liabilities Fair Value at March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Foreign currency forward contracts Other assets, net $ 21,183 $ 22,520 $ — $ — Foreign currency collars Other assets, net 11,086 8,536 — — Interest rate swaps Other assets, net 724 1,435 — — Interest rate caps Other assets, net 8 56 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (4,565 ) (3,387 ) Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (606 ) (1,679 ) 33,001 32,547 (5,171 ) (5,066 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 5,500 5,500 — — Foreign currency forward contracts Other assets, net — 7,144 — — Interest rate swaps (a) Accounts payable, accrued expenses and other liabilities — — (294 ) (343 ) 5,500 12,644 (294 ) (343 ) Total derivatives $ 38,501 $ 45,191 $ (5,465 ) $ (5,409 ) __________ (a) These interest rate swaps do not qualify for hedge accounting; however, they do 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 Income (a) Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationships 2019 2018 Foreign currency collars $ 3,616 $ (6,149 ) Interest rate swaps (1,815 ) 1,006 Foreign currency forward contracts 1,119 (3,164 ) Interest rate caps (27 ) (7 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts — 403 Total $ 2,893 $ (7,911 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended March 31, 2019 2018 Foreign currency forward contracts Other gains and (losses) $ 2,434 $ 1,182 Foreign currency collars Other gains and (losses) 1,088 407 Interest rate swaps and cap Interest expense (67 ) (211 ) Total $ 3,455 $ 1,378 __________ (a) Excludes net losses of $0.9 million and less than $0.1 million recognized on unconsolidated jointly owned investments for the three months ended March 31, 2019 and 2018 , respectively. (b) The changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive 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 March 31, 2019 2018 Foreign currency forward contracts Other gains and (losses) $ (230 ) $ (125 ) Foreign currency collars Other gains and (losses) 41 (237 ) Stock warrants Other gains and (losses) — 268 Interest rate swaps Other gains and (losses) — 5 Derivatives in Cash Flow Hedging Relationships Foreign currency forward contracts Other gains and (losses) (132 ) — Interest rate swaps Interest expense (114 ) 150 Foreign currency collars Other gains and (losses) 7 (46 ) Total $ (428 ) $ 15 |
Schedule of Derivative Instruments | The following table presents the foreign currency derivative contracts we had outstanding at March 31, 2019 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at March 31, 2019 Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 29 75,288 EUR $ 21,070 Foreign currency collars 55 193,000 EUR 6,717 Foreign currency collars 44 43,500 GBP 3,765 Foreign currency forward contracts 4 2,911 NOK 61 Foreign currency collars 3 2,000 NOK (1 ) Designated as Net Investment Hedging Instruments Foreign currency forward contract 1 2,468 NOK 52 Foreign currency collar 1 2,500 NOK (1 ) $ 31,663 The interest rate swaps and caps that our consolidated subsidiaries had outstanding at March 31, 2019 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Fair Value at (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 20 199,605 USD $ (2,270 ) Interest rate swaps 3 64,706 EUR (1,571 ) Interest rate caps 5 155,841 EUR 4 Interest rate cap 1 75,000 USD 3 Interest rate cap 1 6,394 GBP 1 Not Designated as Hedging Instruments Interest rate swaps (b) 3 15,466 EUR (294 ) $ (4,127 ) __________ (a) Fair value amounts are based on the exchange rate of the euro or British pound sterling at March 31, 2019 , as applicable. (b) These interest rate swaps do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the underlying variable-rate debt. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Principal Outstanding Balance at Senior Unsecured Credit Facility March 31, 2019 December 31, 2018 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in euros (b) EURIBOR + 1.00% 2/22/2021 $ 55,052 $ 69,273 Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 30,000 — Unsecured Revolving Credit Facility — borrowing in Japanese yen JPY LIBOR + 1.00% 2/22/2021 21,847 22,290 $ 106,899 $ 91,563 __________ (a) The applicable interest rate at March 31, 2019 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) EURIBOR means Euro Interbank Offered Rate. |
Schedule of Senior Unsecured Notes | The following table presents a summary of our Senior Unsecured Notes outstanding at March 31, 2019 (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 March 31, 2019 December 31, 2018 2.0% Senior Notes due 2023 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 561.7 $ 572.5 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 561.7 572.5 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 2.250% Senior Notes due 2026 10/9/2018 € 500.0 99.252 % $ 4.3 2.361 % 2.250 % 4/9/2026 561.7 572.5 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 561.7 572.5 $ 3,546.8 $ 3,590.0 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $18.6 million and $19.7 million , and unamortized discount totaling $14.9 million and $15.8 million , at March 31, 2019 and December 31, 2018 , respectively. |
Scheduled Debt Principal Payments | Scheduled debt principal payments as of March 31, 2019 are as follows (in thousands): Years Ending December 31, Total (a) 2019 (remainder) $ 82,410 2020 585,697 2021 676,791 2022 586,005 2023 922,665 Thereafter through 2031 3,325,412 Total principal payments 6,178,980 Unamortized discount, net (b) (35,913 ) Unamortized deferred financing costs (19,579 ) Total $ 6,123,488 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at March 31, 2019 . (b) Represents the unamortized discount, net, of $21.0 million in aggregate primarily resulting from the assumption of property-level debt in connection with business combinations, including the CPA:17 Merger ( Note 3 ), and the unamortized discount on the Senior Unsecured Notes of $14.9 million in aggregate. |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Restricted and Conditional Award Activity | Nonvested restricted share awards (“RSAs”), RSUs, and PSUs at March 31, 2019 and changes during the three months ended March 31, 2019 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2019 277,002 $ 62.41 331,216 $ 78.82 Granted (a) 132,743 69.86 84,006 92.16 Vested (b) (133,469 ) 61.14 (403,701 ) 74.04 Forfeited (1,834 ) 64.72 — — Adjustment (c) — — 301,426 77.95 Nonvested at March 31, 2019 (d) 274,442 $ 66.62 312,947 $ 80.96 __________ (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 three months ended March 31, 2019 , we used a risk-free interest rate of 2.5% , an expected volatility rate of 15.8% , and assumed a dividend yield of zero . (b) The grant date fair value of shares vested during the three months ended March 31, 2019 was $38.1 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 March 31, 2019 and December 31, 2018 , we had an obligation to issue 893,713 and 867,871 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $37.3 million and $35.8 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 March 31, 2019 to reflect the number of shares expected to be issued when the PSUs vest. (d) At March 31, 2019 , total unrecognized compensation expense related to these awards was approximately $33.0 million , with an aggregate weighted-average remaining term of 2.3 years . |
Earnings Per Share Reconciliation | The following table summarizes basic and diluted earnings (in thousands, except share amounts): Three Months Ended March 31, 2019 2018 Net income attributable to W. P. Carey $ 68,494 $ 65,274 Net income attributable to nonvested participating RSUs (19 ) (85 ) Net income — basic and diluted $ 68,475 $ 65,189 Weighted-average shares outstanding — basic 167,234,121 108,057,940 Effect of dilutive securities 200,619 153,996 Weighted-average shares outstanding — diluted 167,434,740 108,211,936 |
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 March 31, 2019 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 14,102 $ (269,091 ) $ (7 ) $ (254,996 ) Other comprehensive income before reclassifications 5,404 (173 ) 537 5,768 Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (3,522 ) — — (3,522 ) Interest expense 67 — — 67 Total (3,455 ) — — (3,455 ) Net current period other comprehensive income 1,949 (173 ) 537 2,313 Ending balance $ 16,051 $ (269,264 ) $ 530 $ (252,683 ) Three Months Ended March 31, 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 income before reclassifications (7,014 ) 18,516 428 11,930 Amounts reclassified from accumulated other comprehensive loss to: Other gains and (losses) (1,589 ) — — (1,589 ) Interest expense 211 — — 211 Total (1,378 ) — — (1,378 ) Net current period other comprehensive income (8,392 ) 18,516 428 10,552 Net current period other comprehensive gain attributable to noncontrolling interests 3 (3,782 ) — (3,779 ) Ending balance $ 783 $ (230,288 ) $ 267 $ (229,238 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Revenues Lease revenues $ 262,939 $ 169,432 Operating property revenues (a) 15,996 7,218 Lease termination income and other 3,270 942 282,205 177,592 Operating Expenses Depreciation and amortization 111,413 64,920 General and administrative 15,188 12,065 Reimbursable tenant costs 13,171 6,219 Operating property expenses 10,594 5,670 Property expenses, excluding reimbursable tenant costs 9,912 4,229 Stock-based compensation expense 2,800 4,306 Merger and other expenses 146 (37 ) Impairment charges — 4,790 163,224 102,162 Other Income and Expenses Interest expense (61,313 ) (38,074 ) Other gains and (losses) 970 (2,887 ) Gain on sale of real estate, net 933 6,732 Equity in (losses) earnings of equity method investments in real estate (78 ) 3,358 (59,488 ) (30,871 ) Income before income taxes 59,493 44,559 (Provision for) benefit from income taxes (6,159 ) 3,533 Net Income from Real Estate 53,334 48,092 Net loss (income) attributable to noncontrolling interests 74 (2,792 ) Net Income from Real Estate Attributable to W. P. Carey $ 53,408 $ 45,300 __________ (a) Operating property revenues from our hotels include (i) $3.9 million for the three months ended March 31, 2018 generated from a hotel in Memphis, Tennessee, which was sold in April 2018, (ii) $3.4 million and $3.3 million for the three months ended March 31, 2019 and 2018 , respectively, generated from a hotel in Bloomington, Minnesota, and (iii) $2.9 million for the three months ended March 31, 2019 , generated from a hotel in Miami, Florida, which was acquired in the CPA:17 Merger ( Note 3 ). Investment Management Three Months Ended March 31, 2019 2018 Revenues Asset management revenue $ 9,732 $ 16,985 Reimbursable costs from affiliates 3,868 5,304 Structuring and other advisory revenue 2,518 1,929 16,118 24,218 Operating Expenses General and administrative 6,097 6,518 Reimbursable costs from affiliates 3,868 5,304 Subadvisor fees 2,202 2,032 Stock-based compensation expense 1,365 3,913 Depreciation and amortization 966 1,037 14,498 18,804 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 5,569 11,967 Other gains and (losses) (15 ) 124 5,554 12,091 Income before income taxes 7,174 17,505 Benefit from income taxes 8,288 2,469 Net Income from Investment Management 15,462 19,974 Net income attributable to noncontrolling interests (376 ) — Net Income from Investment Management Attributable to W. P. Carey $ 15,086 $ 19,974 Total Company Three Months Ended March 31, 2019 2018 Revenues $ 298,323 $ 201,810 Operating expenses 177,722 120,966 Other income and (expenses) (53,934 ) (18,780 ) Benefit from income taxes 2,129 6,002 Net income attributable to noncontrolling interests (302 ) (2,792 ) Net income attributable to W. P. Carey $ 68,494 $ 65,274 |
Reconciliation of Assets from Segment to Consolidated | Total Assets at March 31, 2019 December 31, 2018 Real Estate $ 13,899,667 $ 13,941,963 Investment Management 256,235 241,076 Total Company $ 14,155,902 $ 14,183,039 |
Business and Organization - Nar
Business and Organization - Narratives (Details) ft² in Millions | 3 Months Ended |
Mar. 31, 2019ft²propertytenant | |
Real Estate | |
Additional disclosures | |
Number of real estate properties | 1,168 |
Square footage of real estate properties | ft² | 133.5 |
Number of tenants | tenant | 310 |
Weighted average lease term | 10 years 2 months 12 days |
Occupancy rate | 98.20% |
Real Estate | Operating properties | |
Additional disclosures | |
Number of real estate properties | 48 |
Square footage of real estate properties | ft² | 3.4 |
Real Estate | Self-storage | |
Additional disclosures | |
Number of real estate properties | 46 |
Real Estate | Hotel | |
Additional disclosures | |
Number of real estate properties | 2 |
Investment Management | Affiliated Entity | CPA:18 – Global | |
Additional disclosures | |
Number of real estate properties | 56 |
Square footage of real estate properties | ft² | 10 |
Number of tenants | tenant | 90 |
Occupancy rate | 97.80% |
Investment Management | Affiliated Entity | Managed Programs | |
Additional disclosures | |
Number of real estate properties | 129 |
Square footage of real estate properties | ft² | 15.5 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)vie | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)vie | |
Basis of Consolidation | ||||
Variable interest entities, count | vie | 31 | 32 | ||
Variable interest entities consolidated, count | vie | 24 | 24 | ||
Variable interest entities unconsolidated, count | vie | 7 | 8 | ||
Variable interest entity, maximum exposure to loss | $ 281,100 | $ 301,600 | ||
Restricted cash | 62,354 | $ 206,419 | ||
Right of use asset | 125,123 | |||
Lease liabilty | 92,351 | |||
ASU 2016-02 | ||||
Basis of Consolidation | ||||
Lease liabilty | $ 95,300 | |||
Net reclassification of below-market ground lease intangible assets, above-market ground lease intangible liabilities, prepaid rent, and deferred rent | (33,000) | |||
Real Estate | ||||
Basis of Consolidation | ||||
Gross contract revenue | 15,996 | $ 7,218 | ||
Real Estate | Hotel | ||||
Basis of Consolidation | ||||
Gross contract revenue | $ 6,300 | $ 7,200 | ||
Managed Programs | ||||
Basis of Consolidation | ||||
Variable interest entities unconsolidated, count | vie | 2 | 2 | ||
Real Estate | ||||
Basis of Consolidation | ||||
Variable interest entities unconsolidated, count | vie | 5 | 6 | ||
Land | ||||
Basis of Consolidation | ||||
Right of use asset | $ 113,708 | |||
Land | ASU 2016-02 | ||||
Basis of Consolidation | ||||
Right of use asset | 115,600 | |||
Office | ||||
Basis of Consolidation | ||||
Right of use asset | $ 11,415 | |||
Office | ASU 2016-02 | ||||
Basis of Consolidation | ||||
Right of use asset | $ 12,700 | |||
Australian Properties | Other assets, net | ||||
Basis of Consolidation | ||||
Restricted cash | $ 145,700 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Land, buildings and improvements | $ 9,396,426 | $ 9,251,396 |
Net investments in direct financing leases | 1,279,122 | |
In-place lease intangible assets and other | 2,101,473 | 2,009,628 |
Above-market rent intangible assets | 922,427 | 925,797 |
Accumulated depreciation and amortization | (1,681,942) | (1,564,182) |
Total assets | 14,155,902 | 14,183,039 |
Liabilities | ||
Non-recourse mortgages, net | 2,503,321 | 2,732,658 |
Total liabilities | 7,138,173 | 7,352,984 |
Variable Interest Entity | ||
Assets | ||
Land, buildings and improvements | 798,667 | 781,347 |
Net investments in direct financing leases | 300,896 | 305,493 |
In-place lease intangible assets and other | 99,620 | 84,870 |
Above-market rent intangible assets | 43,763 | 45,754 |
Accumulated depreciation and amortization | (171,527) | (164,942) |
Total assets | 1,137,418 | 1,112,984 |
Liabilities | ||
Non-recourse mortgages, net | 149,701 | 157,955 |
Total liabilities | $ 215,443 | $ 227,461 |
Basis of Presentation - Cash an
Basis of Presentation - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 243,325 | $ 217,644 | ||
Restricted cash | 62,354 | 206,419 | ||
Total cash and cash equivalents and restricted cash | $ 305,679 | $ 424,063 | $ 215,383 | $ 209,676 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Narratives (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)investment | |
Distributions Of Available Cash and Deferred Revenue Earned | |
Percentage of Available Cash distribution to advisor | 10.00% |
Measurement period adjustment, decrease to goodwill | $ 343 |
Other Transactions with Affiliates | |
Jointly owned investments | investment | 9 |
Jointly owned investments, consolidated | investment | 2 |
Jointly owned investment, accounted for under the equity method investments | investment | 7 |
CPA:17 – Global | |
Distributions Of Available Cash and Deferred Revenue Earned | |
Measurement period adjustment, increase to investment in real estate | $ 2,600 |
Measurement period adjustment, decrease to other assets, net | (3,000) |
Measurement period adjustment, decrease to deferred income taxes | 700 |
Measurement period adjustment, decrease to goodwill | $ (300) |
Affiliated Entity | CWI 1 | |
Distributions Of Available Cash and Deferred Revenue Earned | |
Percentage of Available Cash distribution to advisor | 20.00% |
Affiliated Entity | CWI 2 | |
Distributions Of Available Cash and Deferred Revenue Earned | |
Percentage of Available Cash distribution to advisor | 25.00% |
Maximum | Contract sales price of investment | Affiliated Entity | Managed Reits | |
Related Party Transaction | |
Percentage of Acquisition Fees earned | 6.00% |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Related Party Income (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction | ||
Distributions of Available Cash | $ 5,685 | $ 10,502 |
Interest income on deferred acquisition fees and loans to affiliates | 520 | 553 |
Revenue from related parties | 22,323 | 35,273 |
Asset management revenue | ||
Related Party Transaction | ||
Gross contract revenue | 9,732 | 16,985 |
Reimbursable costs from affiliates | ||
Related Party Transaction | ||
Gross contract revenue | 3,868 | 5,304 |
Structuring and other advisory revenue | ||
Related Party Transaction | ||
Gross contract revenue | $ 2,518 | $ 1,929 |
Agreements and Transactions w_5
Agreements and Transactions with Related Parties - Related Party Income, by Program (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related Party Transaction | ||
Revenue from related parties | $ 22,323 | $ 35,273 |
CPA:17 – Global | ||
Related Party Transaction | ||
Revenue from related parties | 0 | 15,784 |
CPA:18 – Global | ||
Related Party Transaction | ||
Revenue from related parties | 7,961 | 6,887 |
CWI 1 | ||
Related Party Transaction | ||
Revenue from related parties | 7,501 | 6,979 |
CWI 2 | ||
Related Party Transaction | ||
Revenue from related parties | 5,746 | 5,037 |
CESH | ||
Related Party Transaction | ||
Revenue from related parties | $ 1,115 | $ 586 |
Agreements and Transactions w_6
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Due from affiliates | ||
Short-term loans to affiliates, including accrued interest | $ 59,312 | $ 58,824 |
Deferred acquisition fees receivable, including accrued interest | 6,704 | 8,697 |
Reimbursable costs | 2,643 | 3,227 |
Asset management fees receivable | 1,653 | 563 |
Accounts receivable | 997 | 1,425 |
Current acquisition fees receivable | 168 | 2,106 |
Due from affiliates | $ 71,477 | $ 74,842 |
Agreements and Transactions w_7
Agreements and Transactions with Related Parties - Asset Management, Structuring and Other Revenue (Details) - Affiliated Entity | 3 Months Ended |
Mar. 31, 2019 | |
CPA:18 – Global | Long-term net lease | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% |
CPA:18 – Global | Upon Completion | Long-term net lease | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% |
CPA:18 – Global | Deferred | Long-term net lease | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
CPA:18 – Global | Average equity value | |
Related Party Transaction | |
Percentage of asset management fees paid in cash (percentage) | 50.00% |
CPA:18 – Global | Average equity value | Class A | |
Related Party Transaction | |
Percentage of asset management fees paid in shares (percentage) | 50.00% |
CPA:18 – Global | Average equity value | Minimum | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
CPA:18 – Global | Average equity value | Maximum | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.50% |
CWI 1 | Lodging-related investments | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
CWI 1 | Average market value of investment | |
Related Party Transaction | |
Fees earned by advisor paid to subadvisor (percentage) | 20.00% |
CWI 2 | Lodging-related investments | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.55% |
CWI 2 | Average market value of investment | |
Related Party Transaction | |
Fees earned by advisor paid to subadvisor (percentage) | 25.00% |
CESH | Gross assets fair value | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.00% |
CESH | Contract sales price of investment | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
CWI REITs | |
Structuring revenue | |
Loan refinancing fee (percentage) | 1.00% |
CWI REITs | Lodging-related investments | Minimum | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 1.00% |
CWI REITs | Lodging-related investments | Maximum | |
Structuring revenue | |
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% |
Agreements and Transactions w_8
Agreements and Transactions with Related Parties - Personnel, Overhead Costs, Organization and Offering (Details) | Mar. 31, 2019 | Dec. 31, 2018 |
Affiliated Entity | CPA:18 – Global | Maximum | ||
Reimbursed Costs | ||
Personnel and overhead reimbursement (percentage) | 1.00% | 1.00% |
Agreements and Transactions w_9
Agreements and Transactions with Related Parties - Loans Outstanding to Related Party (Details) - USD ($) | Apr. 24, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction | |||
Maximum Loan Amount Authorized | $ 2,350,000,000 | ||
Loans receivable, related party | 56,098,000 | $ 56,098,000 | |
Accrued interest | 3,200,000 | 2,700,000 | |
Affiliated Entity | CWI 1 | |||
Related Party Transaction | |||
Maximum Loan Amount Authorized | 65,802,000 | ||
Loans receivable, related party | $ 41,637,000 | 41,637,000 | |
Affiliated Entity | CWI 1 | Subsequent Events | |||
Related Party Transaction | |||
Loans to related party | $ 5,000,000 | ||
Affiliated Entity | CWI 1 | LIBOR | |||
Related Party Transaction | |||
Variable interest rate (percentage) | 1.00% | ||
Affiliated Entity | CESH | |||
Related Party Transaction | |||
Maximum Loan Amount Authorized | $ 35,000,000 | ||
Loans receivable, related party | $ 14,461,000 | 14,461,000 | |
Affiliated Entity | CESH | LIBOR | |||
Related Party Transaction | |||
Variable interest rate (percentage) | 1.00% | ||
Affiliated Entity | CPA:18 – Global | |||
Related Party Transaction | |||
Maximum Loan Amount Authorized | $ 50,000,000 | ||
Loans receivable, related party | 0 | 0 | |
Affiliated Entity | 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 - Narratives (Details) $ in Thousands | Mar. 29, 2019USD ($) | Mar. 28, 2019USD ($) | Mar. 27, 2019USD ($) | Mar. 07, 2019USD ($) | Feb. 20, 2019USD ($) | Mar. 31, 2019USD ($)propertytenant$ / € | Mar. 31, 2019USD ($)propertytenant$ / € | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($)property$ / € |
Real Estate Properties | |||||||||
Decrease in value of balance sheet item due to foreign currency translation | $ 173 | $ (18,516) | |||||||
Direct financing lease, number of properties reclassified | property | 1 | ||||||||
Direct financing lease, net investments reclassified | $ 16,600 | ||||||||
Investments in real estate | |||||||||
Purchases of real estate | 164,929 | 85,197 | |||||||
Capitalized construction cost | $ 18,600 | ||||||||
Number of construction projects | property | 2 | 4 | |||||||
Unfunded commitment | $ 198,700 | $ 198,700 | $ 204,500 | ||||||
Real estate carrying value | $ 12,017,506 | 12,017,506 | 11,928,854 | ||||||
Interest income from direct financing leases | 26,600 | ||||||||
Sublease income | 1,500 | ||||||||
Cash paid for operating lease liabilities | $ 3,900 | ||||||||
Scheduled future minimum operating lease payments, year one | 14,500 | ||||||||
Scheduled future minimum operating lease payments, year two | 13,500 | ||||||||
Scheduled future minimum operating lease payments, year three | 7,900 | ||||||||
Scheduled future minimum operating lease payments, year four | 7,100 | ||||||||
Scheduled future minimum operating lease payments, year five | 7,000 | ||||||||
Scheduled future minimum operating lease payments, thereafter | $ 246,700 | ||||||||
Owned Real Estate Segment [Member] | |||||||||
Investments in real estate | |||||||||
Number of tenants | tenant | 310 | 310 | |||||||
Number of real estate properties | property | 1,168 | 1,168 | |||||||
Gross contract revenue | $ 15,996 | 7,218 | |||||||
Owned Real Estate Segment [Member] | Lease revenue | |||||||||
Investments in real estate | |||||||||
Gross contract revenue | 13,200 | 5,100 | |||||||
Owned Real Estate Segment [Member] | Food, bevarge and other | |||||||||
Investments in real estate | |||||||||
Gross contract revenue | $ 2,800 | $ 2,100 | |||||||
Minimum (less than) | |||||||||
Investments in real estate | |||||||||
Finite lived intangible assets useful life | 2 years | ||||||||
Maximum | |||||||||
Investments in real estate | |||||||||
Finite lived intangible assets useful life | 48 years | ||||||||
Properties disposed of by sale | |||||||||
Investments in real estate | |||||||||
Number of properties sold | property | 1 | 5 | |||||||
Below-market rent | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 9,600 | ||||||||
Finite lived intangible assets useful life | 15 years | ||||||||
In-place lease | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 43,600 | ||||||||
Finite lived intangible assets useful life | 15 years 10 months 24 days | ||||||||
Land | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 18,900 | ||||||||
Building | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | 132,300 | ||||||||
Net Lease Intangible | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | 34,100 | ||||||||
Other liabilities | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | 800 | ||||||||
Construction in progress | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 53,000 | ||||||||
Construction in progress | Warehouse Facility In Zabia Wola, Poland | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 5,600 | ||||||||
Construction in progress | Warehouse Facility in Dillon SC | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 47,400 | ||||||||
Land, buildings and improvements | Properties disposed of by sale | |||||||||
Investments in real estate | |||||||||
Number of properties sold | property | 1 | ||||||||
Decrease in carrying value of real estate | $ 3,300 | ||||||||
Operating Lease | |||||||||
Real Estate Properties | |||||||||
Decrease in value of balance sheet item due to foreign currency translation | 40,300 | ||||||||
Depreciation | 55,100 | $ 37,200 | |||||||
Investments in real estate | |||||||||
Purchases of real estate | 184,500 | ||||||||
Acquisition related costs | $ 900 | ||||||||
Number of tenants | tenant | 2 | 2 | |||||||
Purchase option exercise price, value | $ 8,600 | $ 8,600 | |||||||
Operating Lease | Asset held for sale, not in discontinued operations | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 2 | 2 | |||||||
Real estate carrying value | $ 6,500 | $ 6,500 | |||||||
Operating Lease | Educational Facility In Portland, Oregon | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 32,700 | ||||||||
Operating Lease | Office Building In Morrisville, North Carolina | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 48,300 | ||||||||
Operating Lease | Distribution Center In Inwood, West Virginia | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 37,600 | ||||||||
Liabilities assumed | $ 20,200 | ||||||||
Operating Lease | Industrial Facility in Hurricane, Utah | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 49,300 | ||||||||
Operating Lease | Office Building And Tractor/trailers Hub In Bensenville, Illinois | |||||||||
Investments in real estate | |||||||||
Purchases of real estate | $ 16,600 | ||||||||
Operating Properties | |||||||||
Real Estate Properties | |||||||||
Depreciation | $ 2,800 | $ 1,100 | |||||||
Operating Properties | Self-storage | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 37 | 37 | 37 | ||||||
Operating Properties | Hotel | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 2 | 2 | 2 | ||||||
EUR | |||||||||
Real Estate Properties | |||||||||
Decrease in exchange rate | 1.90% | ||||||||
Foreign currency exchange rate | $ / € | 1.1235 | 1.1235 | 1.1450 |
Land, Buildings and Improveme_4
Land, Buildings and Improvements - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,681,942) | $ (1,564,182) |
Investments in real estate | 13,699,448 | 13,493,036 |
Operating Properties | ||
Real Estate Investment Property At Cost | ||
Land | 102,478 | 102,478 |
Buildings and improvements | 365,494 | 363,572 |
Real estate under construction | 4,343 | 4,620 |
Less: Accumulated depreciation | (12,832) | (10,234) |
Investments in real estate | 459,483 | 460,436 |
Assets Leased to Others | ||
Real Estate Investment Property At Cost | ||
Land | 1,780,858 | 1,772,099 |
Buildings and improvements | 7,114,453 | 6,945,513 |
Real estate under construction | 28,800 | 63,114 |
Less: Accumulated depreciation | (777,458) | (724,550) |
Investments in real estate | $ 8,146,653 | $ 8,056,176 |
Land, Buildings and Improveme_5
Land, Buildings and Improvements - Operating Lease Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating Leases, Lease Income [Abstract] | |
Lease income — fixed | $ 215,118 |
Lease income – variable | 21,263 |
Total operating lease income | $ 236,381 |
Land, Buildings and Improveme_6
Land, Buildings and Improvements - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Lessor, Operating Lease Rents | |
2019 (remainder) | $ 704,412 |
2020 | 933,380 |
2021 | 914,977 |
2022 | 880,940 |
2023 | 822,002 |
Thereafter | 6,560,712 |
Total | $ 10,816,423 |
Land, Buildings and Improveme_7
Land, Buildings and Improvements - Schedule of Future Minimum Lease Payments - Before Adoption (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Future Minimum Payments Receivable | |
2019 | $ 920,044 |
2020 | 915,411 |
2021 | 896,083 |
2022 | 861,688 |
2023 | 802,509 |
Thereafter | 6,151,480 |
Total | $ 10,547,215 |
Land, Buildings and Improveme_8
Land, Buildings and Improvements - Supplemental Balance Sheet Information (Details) $ in Thousands | Mar. 31, 2019USD ($)lease |
Lessee, Lease, Description | |
Total operating ROU assets | $ 125,123 |
Operating ROU liabilities | $ 92,351 |
Weighted-average remaining lease term — operating leases | 36 years 8 months 12 days |
Weighted-average discount rate — operating leases | 7.70% |
Minimum | |
Lessee, Lease, Description | |
Operating lease contract term | 1 year |
Maximum | |
Lessee, Lease, Description | |
Operating lease contract term | 101 years |
Land | |
Lessee, Lease, Description | |
Total operating ROU assets | $ 113,708 |
Operating lease right of use asset, (lease) | lease | 61 |
Office | |
Lessee, Lease, Description | |
Total operating ROU assets | $ 11,415 |
Operating lease right of use asset, (lease) | lease | 6 |
Land, Buildings and Improveme_9
Land, Buildings and Improvements - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed lease cost | $ 3,814 |
Variable lease cost | 136 |
Total lease cost | $ 3,950 |
Land, Buildings and Improvem_10
Land, Buildings and Improvements - Undiscounted Cash Flow (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remainder) | $ 11,029 |
2020 | 14,946 |
2021 | 8,447 |
2022 | 7,591 |
2023 | 7,444 |
Thereafter | 255,495 |
Total minimum lease payments | 304,952 |
Less: amount of lease payments representing interest | (212,601) |
Lease liabilty | $ 92,351 |
Finance Receivables - Net Inves
Finance Receivables - Net Investments in Direct Financing Lease (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Lease payments receivable | $ 1,117,679 | |
Unguaranteed residual value | 944,902 | |
Net investment in finance leases, excluding unearned income | 2,062,581 | |
Less: unearned income | (783,459) | |
Net receivables (difference between undiscounted cash flows and discounted cash flows) | $ 1,279,122 | |
Lease payments receivable | $ 1,160,977 | |
Unguaranteed residual value | 966,826 | |
Net invesment in finance leases, excluding unearned income | 2,127,803 | |
Less: unearned income | (821,588) | |
Net investment in finance leases | $ 1,306,215 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($)loanproperty | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)loan | |
Finance Receivables | ||||
Interest income from direct financing leases | $ 26,600 | |||
Interest income from direct financing leases | $ 17,200 | |||
Direct financing lease, number of properties reclassified | property | 1 | |||
Direct financing lease, net investments reclassified | $ 16,600 | |||
Decrease in value of balance sheet item due to foreign currency translation | $ 173 | $ (18,516) | ||
Direct financing lease, number of properties to be sold | property | 4 | |||
Real estate carrying value | $ 12,017,506 | $ 11,928,854 | ||
Number of loans receivable | loan | 4 | 4 | ||
Loans receivable | $ 57,800 | $ 57,800 | ||
Loans receivable, dales type lease | 9,400 | 9,500 | ||
Loan receivable contract selling price | $ 9,300 | |||
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 | $ 5,500 | |||
Properties to be sold, carrying value | 6,400 | |||
Direct financing lease | Subsequent Events | ||||
Finance Receivables | ||||
Proceeds from sales of properties | $ 7,700 | |||
New York Times Company | ||||
Finance Receivables | ||||
Bargain purchase option | 250,000 | $ 250,000 | ||
Real estate carrying value | $ 260,500 |
Finance Receivables - Schedule
Finance Receivables - Schedule of Future Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Direct Financing Leases, Lease Receivable, Fiscal Year Maturity | |
2019 (remainder) | $ 340,942 |
2020 | 96,592 |
2021 | 94,595 |
2022 | 85,254 |
2023 | 79,495 |
Thereafter | 420,801 |
Total | $ 1,117,679 |
Finance Receivables - Schedul_2
Finance Receivables - Schedule of Future Lease Payments - Before Adoption (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Future Minimum Rents | |
2019 | $ 373,632 |
2020 | 98,198 |
2021 | 95,181 |
2022 | 85,801 |
2023 | 80,033 |
Thereafter | 428,132 |
Total | $ 1,160,977 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Mar. 31, 2019USD ($)tenant | Dec. 31, 2018USD ($)tenant |
Credit Quality Of Finance Receivables | ||
Net investments in direct financing leases | $ 1,346,251 | $ 1,373,492 |
Internally Assigned Grade1-3 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 35 | 36 |
Net investments in direct financing leases | $ 1,108,250 | $ 1,135,321 |
Internally Assigned Grade 4 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 10 | 10 |
Net investments in direct financing leases | $ 227,620 | $ 227,591 |
Internally Assigned Grade 5 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 1 | 1 |
Net investments in direct financing leases | $ 10,381 | $ 10,580 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets, Net | ||
Amortization of intangible assets | $ 69.4 | $ 38.8 |
Minimum | ||
Finite-Lived Intangible Assets, Net | ||
Finite lived intangible assets useful life | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets, Net | ||
Finite lived intangible assets useful life | 48 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 920,944 |
Foreign currency translation adjustments | (1,928) |
CPA:17 Merger measurement period adjustments (Note 3) | (343) |
Goodwill, ending balance | 918,673 |
Real Estate | |
Goodwill | |
Goodwill, beginning balance | 857,337 |
Foreign currency translation adjustments | (1,928) |
CPA:17 Merger measurement period adjustments (Note 3) | (343) |
Goodwill, ending balance | 855,066 |
Investment Management | |
Goodwill | |
Goodwill, beginning balance | 63,607 |
Goodwill, ending balance | $ 63,607 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortizable Intangible Assets | ||
Less: accumulated amortization | $ (904,420) | $ (841,266) |
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 918,673 | 927,246 |
Total intangible assets, gross | 3,851,955 | 3,879,268 |
Total intangible assets, net | 2,947,535 | 3,038,002 |
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (262,430) | (269,594) |
Less: accumulated amortization | 61,635 | 61,177 |
Net amortizable intangible liabilities | (200,795) | (208,417) |
Indefinite Lived Intangible Liabilities | ||
Total intangible liabilities, gross | (279,141) | (286,305) |
Total intangible liabilities, net | (217,506) | (225,128) |
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 | (262,430) | (253,633) |
Less: accumulated amortization | 61,635 | 57,514 |
Net amortizable intangible liabilities | (200,795) | (196,119) |
Above-market ground lease (a) | ||
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | 0 | (15,961) |
Less: accumulated amortization | 0 | 3,663 |
Net amortizable intangible liabilities | 0 | (12,298) |
Goodwill | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 918,673 | 920,944 |
Below-market ground lease | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 0 | 6,302 |
Contracts including internal software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 23,090 | 22,899 |
Less: accumulated amortization | (12,768) | (11,868) |
Amortizable intangible assets | 10,322 | 11,031 |
Internal-use software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 19,115 | 18,924 |
Less: accumulated amortization | (11,373) | (10,672) |
Amortizable intangible assets | 7,742 | 8,252 |
Trade name | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 3,975 | 3,975 |
Less: accumulated amortization | (1,395) | (1,196) |
Amortizable intangible assets | 2,580 | 2,779 |
Lease intangibles | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 2,910,192 | 2,929,123 |
Less: accumulated amortization | (891,652) | (829,398) |
Amortizable intangible assets | 2,018,540 | 2,099,725 |
In-place lease | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 1,987,765 | 1,960,437 |
Less: accumulated amortization | (541,360) | (496,096) |
Amortizable intangible assets | 1,446,405 | 1,464,341 |
Above-market rent | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 922,427 | 925,797 |
Less: accumulated amortization | (350,292) | (330,935) |
Amortizable intangible assets | 572,135 | 594,862 |
Below-market ground lease (a) | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 0 | 42,889 |
Less: accumulated amortization | 0 | (2,367) |
Amortizable intangible assets | $ 0 | $ 40,522 |
Equity Investments in the Man_3
Equity Investments in the Managed Programs and Real Estate - Narratives (Details) - USD ($) $ in Thousands | Feb. 27, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 7,080 | $ 15,289 | ||
CPA:17 – Global | ||||
Investments in REITs | ||||
Measurement period adjustment, increase to investment in real estate | 2,600 | |||
Real Estate | Unconsolidated Real Estate Investment | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | 3,400 | 4,400 | ||
Aggregate unamortized basis difference on equity investments | 25,600 | $ 23,700 | ||
Managed Programs | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | 5,685 | 10,502 | ||
Beach House JV, LLC | Third Party | Real Estate | ||||
Investments in REITs | ||||
Proceeds from repayment of preferred equity interest | $ 15,000 | |||
Affiliated Entity | CPA:17 – Global | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | 2,400 | |||
Affiliated Entity | CPA: 17 operating partnership | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | 6,200 | |||
Affiliated Entity | CPA:18 – Global | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 800 | 600 | ||
Affiliated Entity | CPA:18 – Global | Class A | ||||
Investments in REITs | ||||
Asset management fees receivable, shares | 55,419 | |||
Affiliated Entity | CPA:18 – Global operating partnership | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 1,800 | 1,900 | ||
Affiliated Entity | CWI 1 | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 600 | 400 | ||
Asset management fees receivable, shares | 117,857 | |||
Affiliated Entity | CWI 1 operating partnership | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 1,900 | 1,000 | ||
Affiliated Entity | CWI 2 | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 400 | 200 | ||
Affiliated Entity | CWI 2 | Class A | ||||
Investments in REITs | ||||
Asset management fees receivable, shares | 82,861 | |||
Affiliated Entity | CWI 2 operating partnership | ||||
Investments in REITs | ||||
Distributions of earnings from equity method investments | $ 1,900 | $ 1,500 | ||
Affiliated Entity | Managed Programs | ||||
Investments in REITs | ||||
Aggregate unamortized basis difference on equity investments | 38,100 | $ 35,200 | ||
Affiliated Entity | Apply Sorco AS (referred to as Apply) | CPA:18 – Global | Real Estate | ||||
Investments in REITs | ||||
Measurement period adjustment, increase to investment in real estate | 5,200 | |||
Affiliated Entity | Apply Sorco AS (referred to as Apply) | CPA:18 – Global | Real Estate | CPA:17 – Global | ||||
Investments in REITs | ||||
Measurement period adjustment, increase to investment in real estate | $ 2,600 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Equity Method Investments | ||
Distributions of Available Cash (Note 3) | $ 7,080 | $ 15,289 |
Proportionate share of equity in earnings of equity investments | 5,491 | 15,325 |
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,491 | 15,325 |
Managed Programs | ||
Schedule Of Equity Method Investments | ||
Distributions of Available Cash (Note 3) | 5,685 | 10,502 |
Proportionate share of equity in earnings of equity investments | 213 | 1,863 |
Amortization of basis differences on equity investments | (329) | (398) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,569 | 11,967 |
Investment in real estate | ||
Schedule Of Equity Method Investments | ||
Proportionate share of equity in earnings of equity investments | 562 | 3,903 |
Amortization of basis differences on equity investments | (640) | (545) |
Equity in earnings of equity method investments in the Managed Programs and real estate | $ (78) | $ 3,358 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Investments in Programs | ||
Equity investments in real estate | $ 320,066 | $ 329,248 |
Affiliated Entity | CPA:18 – Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.571% | 3.446% |
Equity investments in real estate | $ 40,524 | $ 39,600 |
Affiliated Entity | CPA:18 – Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.034% | 0.034% |
Equity investments in real estate | $ 209 | $ 209 |
Affiliated Entity | CWI 1 | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.271% | 3.062% |
Equity investments in real estate | $ 40,945 | $ 38,600 |
Affiliated Entity | CWI 1 operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 186 | $ 186 |
Affiliated Entity | CWI 2 | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.039% | 2.807% |
Equity investments in real estate | $ 27,505 | $ 25,200 |
Affiliated Entity | CWI 2 operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 300 | $ 300 |
Affiliated Entity | CESH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.43% | 2.43% |
Equity investments in real estate | $ 4,032 | $ 3,495 |
Affiliated Entity | Managed Programs | ||
Investments in Programs | ||
Equity investments in real estate | $ 113,701 | $ 107,590 |
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 | Mar. 31, 2019 | Dec. 31, 2018 |
Investments in Programs | ||
Equity investments in real estate | $ 320,066 | $ 329,248 |
Real Estate | ||
Investments in Programs | ||
Equity investments in real estate | $ 206,365 | 221,658 |
Real Estate | Third Party | Kesko Senukai | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 70.00% | |
Equity investments in real estate | $ 51,074 | 52,432 |
Real Estate | Third Party | BPS Nevada, LLC | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 15.00% | |
Equity investments in real estate | $ 22,392 | 22,292 |
Real Estate | Third Party | Beach House JV, LLC | ||
Investments in Programs | ||
Equity investments in real estate | $ 0 | 15,105 |
Real Estate | Third Party | Affiliated Entity | Johnson Self Storage | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 90.00% | |
Equity investments in real estate | $ 72,187 | 73,475 |
Real Estate | CPA:18 – Global | Affiliated Entity | Bank Pekao S.A. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 50.00% | |
Equity investments in real estate | $ 29,154 | 29,086 |
Real Estate | CPA:18 – Global | Affiliated Entity | State Farm Automobile Co. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 50.00% | |
Equity investments in real estate | $ 18,489 | 18,927 |
Real Estate | CPA:18 – Global | Affiliated Entity | Apply Sorco AS (referred to as Apply) | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 49.00% | |
Equity investments in real estate | $ 9,937 | 7,483 |
Real Estate | CPA:18 – Global | Affiliated Entity | Konzum d.d. (referred to as Agrokor) | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 20.00% | |
Equity investments in real estate | $ 3,132 | $ 2,858 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | Dec. 31, 2018USD ($) | |
Fair Value Inputs, Assets | |||
Equity investments in real estate | $ 320,066 | $ 329,248 | |
Unamortized discount | 35,913 | ||
Impairment charges | $ 0 | $ 4,790 | |
Bankrupt tenants property | |||
Fair Value Inputs, Assets | |||
Fair value of impaired real estate | 3,900 | ||
Impairment charges | 3,800 | ||
Vacant property | |||
Fair Value Inputs, Assets | |||
Number of real estate properties | property | 6 | ||
Impairment charges | 1,000 | ||
Unsecured senior notes | |||
Fair Value Inputs, Assets | |||
Unamortized discount | $ 14,900 | ||
GCIF | Other assets, net | |||
Fair Value Inputs, Assets | |||
Equity investments in real estate | 22,500 | 23,600 | |
CPA:17 – Global | |||
Fair Value Inputs, Assets | |||
Measurement period adjustment, decrease to other assets, net | (3,000) | ||
Level 3 | Carrying Value | Non-Recourse Debt | |||
Fair Value Inputs, Assets | |||
Unamortized discount | 21,000 | 21,800 | |
Level 3 | Carrying Value | Non recourse mortgage | |||
Fair Value Inputs, Assets | |||
Debt instrument, unamortized discount and debt issuance costs, net | 800 | 800 | |
Level 3 | Land, buildings and improvements | Fair Value, Measurements, Nonrecurring | |||
Fair Value Inputs, Assets | |||
Recognized impairment costs | $ 4,800 | ||
Number of real estate properties | property | 2 | ||
Level 2 | Carrying Value | Unsecured senior notes | |||
Fair Value Inputs, Assets | |||
Debt instrument, unamortized discount and debt issuance costs, net | 18,800 | 19,700 | |
Unamortized discount | 14,900 | 15,800 | |
Investment in a Cold Storage Operator | Level 3 | |||
Fair Value Inputs, Assets | |||
Fair value of investments | $ 113,300 | $ 116,300 | |
Investment in a Cold Storage Operator | Level 3 | Revenue Multiple | |||
Fair Value Inputs, Assets | |||
Fair value of investment, measurement input | 15.6 | ||
Investment in a Cold Storage Operator | Level 3 | EBITDA Growth Rate | |||
Fair Value Inputs, Assets | |||
Fair value of investment, measurement input | 0.25 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Level 2 | Carrying Value | Unsecured senior notes | ||
Liabilities: | ||
Debt instrument, fair value | $ 3,513,268 | $ 3,554,470 |
Level 2 | Fair Value | Unsecured senior notes | ||
Liabilities: | ||
Debt instrument, fair value | 3,631,030 | 3,567,593 |
Level 3 | Carrying Value | ||
Liabilities: | ||
Debt instrument, fair value | 2,503,321 | 2,732,658 |
Level 3 | Carrying Value | Notes Receivable | ||
Assets: | ||
Loans receivable | 67,129 | 67,277 |
Level 3 | Fair Value | ||
Liabilities: | ||
Debt instrument, fair value | 2,515,119 | 2,737,861 |
Level 3 | Fair Value | Notes Receivable | ||
Assets: | ||
Loans receivable | $ 66,828 | $ 67,123 |
Risk Management and Use of De_3
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) ¥ in Billions | 3 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019JPY (¥) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Summary of Derivative Instruments | |||||
Net collateral posted for derivatives | $ 0 | $ 0 | |||
Derivative, remaining maturity | 77 months | ||||
Total credit exposure on derivatives | $ 31,700,000 | ||||
Derivatives, net liability position | 8,600,000 | 7,300,000 | |||
Aggregate termination value for immediate settlement | 8,900,000 | 7,600,000 | |||
Other comprehensive income foreign currency gain (loss) | 44,100,000 | $ (40,000,000) | |||
Unsecured revolving credit facility | |||||
Summary of Derivative Instruments | |||||
Debt | 106,899,000 | 91,563,000 | |||
EUR | Unsecured revolving credit facility | |||||
Summary of Derivative Instruments | |||||
Debt | 55,052,000 | € 49,000,000 | 69,273,000 | ||
JPY | Unsecured revolving credit facility | |||||
Summary of Derivative Instruments | |||||
Debt | 21,847,000 | ¥ 2.4 | $ 22,290,000 | ||
Unsecured senior notes | |||||
Summary of Derivative Instruments | |||||
Principal amount | $ 3,500,000,000 | ||||
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 | 2.250% Senior Notes due 2026 | |||||
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 | $ 14,900,000 | ||||
Interest expense | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | 1,700,000 | ||||
Other gains | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | $ (13,000,000) |
Risk Management and Use of De_4
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 38,501 | $ 45,191 |
Liability derivatives, fair value | (5,465) | (5,409) |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 33,001 | 32,547 |
Liability derivatives, fair value | (5,171) | (5,066) |
Derivatives Designated as Hedging Instruments | Foreign currency forward contracts | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 21,183 | 22,520 |
Derivatives Designated as Hedging Instruments | Foreign currency collars | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 11,086 | 8,536 |
Derivatives Designated as Hedging Instruments | Foreign currency collars | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (606) | (1,679) |
Derivatives Designated as Hedging Instruments | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 724 | 1,435 |
Derivatives Designated as Hedging Instruments | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (4,565) | (3,387) |
Derivatives Designated as Hedging Instruments | Interest rate caps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 8 | 56 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 5,500 | 12,644 |
Liability derivatives, fair value | (294) | (343) |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 7,144 | |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (294) | (343) |
Derivatives Not Designated as Hedging Instruments | Stock warrants | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 5,500 | $ 5,500 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income | $ 2,893 | $ (7,911) |
Derivatives in Cash Flow Hedging Relationships | Equity method investments | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income | (900) | (100) |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income | 3,616 | (6,149) |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income | (1,815) | 1,006 |
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 | 1,119 | (3,164) |
Derivatives in Cash Flow Hedging Relationships | Interest rate caps | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income | (27) | (7) |
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 | $ 0 | $ 403 |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | $ 3,455 | $ 1,378 |
Foreign currency forward contracts | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | 2,434 | 1,182 |
Foreign currency collars | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | 1,088 | 407 |
Interest rate swaps and cap | Interest expense | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | ||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income | $ (67) | $ (211) |
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ (428) | $ 15 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | (230) | (125) |
Derivatives Not Designated as Hedging Instruments | Foreign currency collars | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | 41 | (237) |
Derivatives Not Designated as Hedging Instruments | Stock warrants | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | 268 |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | 0 | 5 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | (132) | 0 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | Other gains and (losses) | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | 7 | (46) |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Interest expense | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ (114) | $ 150 |
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, $ in Thousands | Mar. 31, 2019USD ($)instrument | Mar. 31, 2019EUR (€)instrument | Mar. 31, 2019GBP (£)instrument |
Derivative Disclosure | |||
Fair value | $ (4,127) | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Interest rate swaps | USD | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 20 | 20 | 20 |
Notional Amount | $ 199,605 | ||
Fair value | $ (2,270) | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Interest rate swaps | EUR | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 3 | 3 | 3 |
Notional Amount | € | € 64,706 | ||
Fair value | $ (1,571) | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Interest rate caps | USD | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 1 | 1 | 1 |
Notional Amount | $ 75,000 | ||
Fair value | $ 3 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Interest rate caps | EUR | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 5 | 5 | 5 |
Notional Amount | € | € 155,841 | ||
Fair value | $ 4 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Interest rate caps | GBP | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 1 | 1 | 1 |
Notional Amount | £ | £ 6,394 | ||
Fair value | $ 1 | ||
Not Designated as Hedging Instruments | Interest rate swaps | EUR | |||
Derivative Disclosure | |||
Derivative number of instruments | instrument | 3 | 3 | 3 |
Notional Amount | € | € 15,466 | ||
Fair value | $ (294) |
Risk Management and Use of De_9
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, £ in Thousands, kr in Thousands, $ in Thousands | Mar. 31, 2019USD ($)instrument | Mar. 31, 2019NOK (kr)instrument | Mar. 31, 2019EUR (€)instrument | Mar. 31, 2019GBP (£)instrument |
Derivative Disclosure | ||||
Fair value, foreign currency derivatives | $ 31,663 | |||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency forward contracts | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 29 | 29 | 29 | 29 |
Notional Amount | € | € 75,288 | |||
Fair value, foreign currency derivatives | $ 21,070 | |||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency forward contracts | NOK | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 4 | 4 | 4 | 4 |
Notional Amount | kr | kr 2,911 | |||
Fair value, foreign currency derivatives | $ 61 | |||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 55 | 55 | 55 | 55 |
Notional Amount | € | € 193,000 | |||
Fair value, foreign currency derivatives | $ 6,717 | |||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | GBP | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 44 | 44 | 44 | 44 |
Notional Amount | £ | £ 43,500 | |||
Fair value, foreign currency derivatives | $ 3,765 | |||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | NOK | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 3 | 3 | 3 | 3 |
Notional Amount | kr | kr 2,000 | |||
Fair value, foreign currency derivatives | $ (1) | |||
Derivatives Designated as Hedging Instruments | Derivatives in Net Investment Hedging Relationships | Foreign currency forward contracts | NOK | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 1 | 1 | 1 | 1 |
Notional Amount | kr | kr 2,468 | |||
Fair value, foreign currency derivatives | $ 52 | |||
Derivatives Designated as Hedging Instruments | Derivatives in Net Investment Hedging Relationships | Foreign currency collars | NOK | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 1 | 1 | 1 | 1 |
Notional Amount | kr | kr 2,500 | |||
Fair value, foreign currency derivatives | $ (1) |
Debt - Narratives (Details)
Debt - Narratives (Details) | Mar. 27, 2019USD ($) | Feb. 22, 2017USD ($)option | Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Feb. 22, 2017EUR (€)option |
Senior Unsecured Credit Facility | ||||||
Line of credit, maximum borrowing amount | $ 2,350,000,000 | |||||
Non Recourse Mortgage | ||||||
Debt instrument maturity date, range start | Aug. 1, 2019 | |||||
Debt instrument maturity date, range end | Sep. 1, 2031 | |||||
Real estate carrying value | $ 12,017,506,000 | $ 11,928,854,000 | ||||
Non-recourse mortgages, net | 2,503,321,000 | 2,732,658,000 | ||||
Prepayments of mortgage principal | 199,579,000 | $ 164,908,000 | ||||
Repayments of non recourse mortgage loan | 40,360,000 | 22,472,000 | ||||
Decrease in value of balance sheet item due to foreign currency translation | 173,000 | (18,516,000) | ||||
Unamortized discount | 35,913,000 | |||||
Merged Entities | ||||||
Non Recourse Mortgage | ||||||
Unamortized discount | $ 21,000,000 | |||||
Vacant property | ||||||
Non Recourse Mortgage | ||||||
Number of real estate properties | property | 6 | |||||
Vacant property | CPA:17 – Global | ||||||
Senior Unsecured Credit Facility | ||||||
Principal Amount | $ 57,200,000 | 57,200,000 | ||||
Non Recourse Mortgage | ||||||
Real estate carrying value | 42,900,000 | |||||
Non-recourse mortgages, net | $ 41,900,000 | |||||
Stated interest rate (percentage) | 4.4065% | |||||
Default interest rate (percentage) | 5.00% | |||||
Operating Lease | ||||||
Non Recourse Mortgage | ||||||
Decrease in value of balance sheet item due to foreign currency translation | $ 40,300,000 | |||||
Operating Lease | Distribution Center In Inwood, West Virginia | ||||||
Non Recourse Mortgage | ||||||
Mortgage loan on real estate, interest rate (percent) | 4.70% | |||||
Liabilities assumed | $ 20,200,000 | |||||
Fixed interest rate | Minimum | ||||||
Non Recourse Mortgage | ||||||
Mortgage loan on real estate, interest rate (percent) | 1.90% | |||||
Fixed interest rate | Maximum | ||||||
Non Recourse Mortgage | ||||||
Mortgage loan on real estate, interest rate (percent) | 9.40% | |||||
Variable interest rate | Minimum | ||||||
Non Recourse Mortgage | ||||||
Mortgage loan on real estate, interest rate (percent) | 1.30% | |||||
Variable interest rate | Maximum | ||||||
Non Recourse Mortgage | ||||||
Mortgage loan on real estate, interest rate (percent) | 8.50% | |||||
Unsecured senior notes | ||||||
Senior Unsecured Credit Facility | ||||||
Principal Amount | $ 3,500,000,000 | |||||
Non Recourse Mortgage | ||||||
Unamortized discount | 14,900,000 | $ 15,800,000 | ||||
Non-Recourse Debt | ||||||
Non Recourse Mortgage | ||||||
Prepayments of mortgage principal | 199,600,000 | |||||
Repayments of non recourse mortgage loan | $ 18,800,000 | $ 9,500,000 | ||||
Weighted average interest rate | 5.00% | 2.50% | ||||
Non-Recourse Debt | Disposed of by Means Other than Sale, Not Discontinued Operations | ||||||
Non Recourse Mortgage | ||||||
Prepayments of mortgage principal | $ 12,500,000 | |||||
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 facility, available | $ 1,400,000,000 | |||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | |||||
Delayed Draw term loan | ||||||
Senior Unsecured Credit Facility | ||||||
Line of credit, maximum borrowing amount | $ 100,000,000 | |||||
Term Loan | ||||||
Senior Unsecured Credit Facility | ||||||
Line of credit, maximum borrowing amount | € | € 236,300,000 | |||||
Unsecured senior notes | ||||||
Non Recourse Mortgage | ||||||
Unamortized discount | $ 14,900,000 | |||||
Unsecured senior notes | Government bond yield | Minimum | ||||||
Senior Unsecured Credit Facility | ||||||
Variable interest rate (percentage) | 0.30% | |||||
Unsecured senior notes | Government bond yield | Maximum | ||||||
Senior Unsecured Credit Facility | ||||||
Variable interest rate (percentage) | 0.35% | |||||
Non-Recourse Debt | ||||||
Non Recourse Mortgage | ||||||
Prepayments of mortgage principal | $ 164,900,000 | |||||
Decrease in value of balance sheet item due to foreign currency translation | $ 56,300,000 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Credit Facility (Details) $ in Thousands, € in Millions, ¥ in Billions | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2019JPY (¥) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Standard & Poor's, BBB Rating | ||||
Senior Unsecured Credit Facility | ||||
Debt instrument, credit rating | BBB | |||
Moody's, Baa2 Rating | ||||
Senior Unsecured Credit Facility | ||||
Debt instrument, credit rating | Baa2 | |||
Unsecured revolving credit facility | ||||
Senior Unsecured Credit Facility | ||||
Debt | $ 106,899 | $ 91,563 | ||
Unsecured revolving credit facility | EUR | ||||
Senior Unsecured Credit Facility | ||||
Maturity Date | Feb. 22, 2021 | |||
Debt | $ 55,052 | € 49 | 69,273 | |
Unsecured revolving credit facility | EUR | EURIBOR | ||||
Senior Unsecured Credit Facility | ||||
Variable interest rate (percentage) | 1.00% | |||
Unsecured revolving credit facility | USD | ||||
Senior Unsecured Credit Facility | ||||
Maturity Date | Feb. 22, 2021 | |||
Debt | $ 30,000 | 0 | ||
Unsecured revolving credit facility | USD | LIBOR | ||||
Senior Unsecured Credit Facility | ||||
Variable interest rate (percentage) | 1.00% | |||
Unsecured revolving credit facility | JPY | ||||
Senior Unsecured Credit Facility | ||||
Maturity Date | Feb. 22, 2021 | |||
Debt | $ 21,847 | ¥ 2.4 | $ 22,290 | |
Unsecured revolving credit facility | JPY | JPY LIBOR | ||||
Senior Unsecured Credit Facility | ||||
Variable interest rate (percentage) | 1.00% |
Debt - Summary of Senior Unse_2
Debt - Summary of Senior Unsecured Notes (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | |
Senior Unsecured Notes | |||
Senior unsecured notes, net | $ 3,513,268,000 | $ 3,554,470,000 | |
Deferred financing costs | 19,579,000 | ||
Unamortized discount, net | 35,913,000 | ||
Unsecured senior notes | |||
Senior Unsecured Notes | |||
Principal Amount | 3,500,000,000 | ||
Senior unsecured notes, net | 3,546,800,000 | 3,590,000,000 | |
Deferred financing costs | 18,600,000 | 19,700,000 | |
Unamortized discount, net | $ 14,900,000 | 15,800,000 | |
Unsecured senior 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% | |
Original Issue Discount | $ 4,600,000 | ||
Effective Interest Rate (percentage) | 2.107% | 2.107% | |
Coupon rate (percentage) | 2.00% | 2.00% | |
Maturity Date | Jan. 20, 2023 | ||
Senior unsecured notes, net | $ 561,700,000 | 572,500,000 | |
Unsecured senior 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% | |
Original Issue Discount | $ 1,800,000 | ||
Effective Interest Rate (percentage) | 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 | |
Unsecured senior 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% | |
Original Issue Discount | $ 2,900,000 | ||
Effective Interest Rate (percentage) | 2.332% | 2.332% | |
Coupon rate (percentage) | 2.25% | 2.25% | |
Maturity Date | Jul. 19, 2024 | ||
Senior unsecured notes, net | $ 561,700,000 | 572,500,000 | |
Unsecured senior 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% | |
Original Issue Discount | $ 2,800,000 | ||
Effective Interest Rate (percentage) | 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 | |
Unsecured senior notes | 2.250% Senior Notes due 2026 | |||
Senior Unsecured Notes | |||
Issue Date | Oct. 9, 2018 | ||
Principal Amount | € | € 500,000,000 | ||
Price of Par Value (percentage) | 99.252% | 99.252% | |
Original Issue Discount | $ 4,300,000 | ||
Effective Interest Rate (percentage) | 2.361% | 2.361% | |
Coupon rate (percentage) | 2.25% | 2.25% | |
Maturity Date | Apr. 9, 2026 | ||
Senior unsecured notes, net | $ 561,700,000 | 572,500,000 | |
Unsecured senior 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% | |
Original Issue Discount | $ 1,100,000 | ||
Effective Interest Rate (percentage) | 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 | |
Unsecured senior 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% | |
Original Issue Discount | $ 4,200,000 | ||
Effective Interest Rate (percentage) | 2.208% | 2.208% | |
Coupon rate (percentage) | 2.125% | 2.125% | |
Maturity Date | Apr. 15, 2027 | ||
Senior unsecured notes, net | $ 561,700,000 | $ 572,500,000 |
Debt - Scheduled Debt Principal
Debt - Scheduled Debt Principal Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Long-term Debt, by Maturity | |
2019 (remainder) | $ 82,410 |
2020 | 585,697 |
2021 | 676,791 |
2022 | 586,005 |
2023 | 922,665 |
Thereafter through 2031 | 3,325,412 |
Long term debt before unamortized discount | 6,178,980 |
Unamortized discount, net | (35,913) |
Unamortized deferred financing costs | (19,579) |
Total scheduled debt principal payments | $ 6,123,488 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Narratives (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 27, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 4,165,000 | $ 8,219,000 | ||
Fair value of vested stock | 38,100,000 | |||
Deferred compensation obligation | 37,263,000 | $ 35,766,000 | ||
Proceed from issuance of stock | $ 303,831,000 | |||
Distributions Declared | ||||
Dividends declared per share (in dollars per share) | $ 1.032 | $ 1.015 | ||
Dividend payable date | Apr. 15, 2019 | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares issued (shares) | 4,053,623 | |||
Proceed from issuance of stock | $ 4,000 | |||
ATM Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Common stock maximum offering value | $ 248,800,000 | $ 500,000,000 | ||
ATM Program | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares issued (shares) | 4,053,623 | 0 | ||
Weighted average share price (usd per share) | $ 76.17 | |||
Proceed from issuance of stock | $ 303,800,000 | |||
Restricted Stock, RSU, and PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 4,200,000 | |||
PSU Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Performance period (in years) | 3 years | |||
PSU Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Potential performance return rate for stock awards | 0 | |||
PSU Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Potential performance return rate for stock awards | 3 | |||
Long Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Fair value assumptions expected dividend rate (percent) | 0.00% | |||
Deferred compensation arrangement with individual, common stock reserved for future issuance (shares) | 893,713 | 867,871 | ||
Deferred compensation obligation | $ 37,300,000 | $ 35,800,000 | ||
Unrecognized stock based compensation expense | $ 33,000,000 | |||
Weighted-average remaining term | 2 years 3 months 4 days | |||
Long Term Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Risk free interest rate (percent) | 2.50% | |||
Fair value assumptions expected volatility rate (percent) | 15.80% |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Restricted and Conditional Awards (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
RSA 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 | 277,002 |
Granted - shares | shares | 132,743 |
Vested - shares | shares | (133,469) |
Forfeited - shares | shares | (1,834) |
Adjustments - shares | shares | 0 |
Nonvested, ending balance - shares | shares | 274,442 |
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 | $ 62.41 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 69.86 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 61.14 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 64.72 |
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 | $ 66.62 |
PSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested, beginning balance - shares | shares | 331,216 |
Granted - shares | shares | 84,006 |
Vested - shares | shares | (403,701) |
Forfeited - shares | shares | 0 |
Adjustments - shares | shares | 301,426 |
Nonvested, ending balance - shares | shares | 312,947 |
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 | $ 78.82 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 92.16 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 74.04 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 77.95 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 80.96 |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share Reconciliation | ||
Net Income Attributable to W. P. Carey | $ 68,494 | $ 65,274 |
Net income attributable to nonvested participating RSUs | (19) | (85) |
Net income — basic and diluted | $ 68,475 | $ 65,189 |
Weighted-average shares outstanding – basic (shares) | 167,234,121 | 108,057,940 |
Effect of dilutive securities (shares) | 200,619 | 153,996 |
Weighted-average shares outstanding – diluted (shares) | 167,434,740 | 108,211,936 |
Anti-dilutive shares (shares) | 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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reconciliation Of Accumulated Comprehensive Income | ||
Beginning equity balance | $ 6,830,055 | $ 3,411,385 |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Other gains and (losses) | (955) | 2,763 |
Interest expense | 61,313 | 38,074 |
Net current period other comprehensive income | 2,313 | 10,552 |
Ending equity balance | 7,017,729 | 3,369,505 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Other comprehensive income before reclassifications | 5,768 | 11,930 |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Total | (3,455) | (1,378) |
Net current period other comprehensive income | 2,313 | 10,552 |
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to: | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Other gains and (losses) | (3,522) | (1,589) |
Interest expense | 67 | 211 |
Gains and (Losses) on Derivative Instruments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Other comprehensive income before reclassifications | 5,404 | (7,014) |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Total | (3,455) | (1,378) |
Net current period other comprehensive income | 1,949 | (8,392) |
Gains and (Losses) on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to: | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Other gains and (losses) | (3,522) | (1,589) |
Interest expense | 67 | 211 |
Foreign Currency Translation Adjustments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Other comprehensive income before reclassifications | (173) | 18,516 |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Total | 0 | 0 |
Net current period other comprehensive income | (173) | 18,516 |
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Other gains and (losses) | 0 | 0 |
Interest expense | 0 | 0 |
Gains and (Losses) on Investments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Other comprehensive income before reclassifications | 537 | 428 |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Total | 0 | 0 |
Net current period other comprehensive income | 537 | 428 |
Gains and (Losses) on Investments | Amounts reclassified from accumulated other comprehensive loss to: | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Other gains and (losses) | 0 | 0 |
Interest expense | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Beginning equity balance | (254,996) | (236,011) |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Ending equity balance | (252,683) | (229,238) |
Gains and (Losses) on Derivative Instruments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Beginning equity balance | 14,102 | 9,172 |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Ending equity balance | 16,051 | 783 |
Foreign Currency Translation Adjustments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Beginning equity balance | (269,091) | (245,022) |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Ending equity balance | (269,264) | (230,288) |
Gains and (Losses) on Investments | ||
Reconciliation Of Accumulated Comprehensive Income | ||
Beginning equity balance | (7) | (161) |
Amounts reclassified from accumulated other comprehensive loss to: | ||
Ending equity balance | $ 530 | 267 |
Noncontrolling Interest | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (3,779) | |
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 | 3 | |
Foreign Currency Translation Adjustments | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (3,782) | |
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 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes | ||
Current income tax benefit (expense) | $ 0.3 | $ (6.2) |
Deferred income tax (expense) benefit | 1.8 | 12.2 |
Deferred tax benefit | $ 6.2 | |
Adjustments | ||
Income Taxes | ||
Current income tax benefit (expense) | $ 6.3 |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) - Properties disposed of by sale $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | |
Discontinued Operation Additional Disclosures | ||
Number of properties sold | property | 1 | 5 |
Proceeds from the sale of properties | $ 4.9 | $ 35.7 |
Gain on sale of real estate, net of tax | $ 0.9 | 6.7 |
Gain on sales of real estate, applicable tax | $ 0.1 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information | ||
Number of business segments | segment | 2 | |
Real Estate | ||
Segment Reporting Information | ||
Gross contract revenue | $ 15,996 | $ 7,218 |
Real Estate | Hotel in Memphis, Tennessee | ||
Segment Reporting Information | ||
Gross contract revenue | 3,900 | |
Real Estate | Hotel in Bloomington, Minnesota | ||
Segment Reporting Information | ||
Gross contract revenue | 3,400 | $ 3,300 |
Real Estate | Hotel in Miami, FL | ||
Segment Reporting Information | ||
Gross contract revenue | $ 2,900 |
Segment Reporting - Income From
Segment Reporting - Income From Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Revenues | $ 298,323 | $ 201,810 |
Operating Expenses | ||
Depreciation and amortization | 112,379 | 65,957 |
General and administrative | 21,285 | 18,583 |
Reimbursable tenant costs | 13,171 | 6,219 |
Operating property expenses | 10,594 | 5,670 |
Property expenses, excluding reimbursable tenant costs | 9,912 | 4,229 |
Stock-based compensation expense | 4,165 | 8,219 |
Merger and other expenses | 146 | (37) |
Impairment charges | 0 | 4,790 |
Total operating expenses | 177,722 | 120,966 |
Other Income and Expenses | ||
Interest expense | (61,313) | (38,074) |
Other gains and (losses) | 955 | (2,763) |
Gain on sale of real estate, net | 933 | 6,732 |
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,491 | 15,325 |
Total other income and expenses | (53,934) | (18,780) |
Income before income taxes | 66,667 | 62,064 |
(Provision for) benefit from income taxes | 2,129 | 6,002 |
Net Income | 68,796 | 68,066 |
Net income attributable to noncontrolling interests | (302) | (2,792) |
Net Income Attributable to W. P. Carey | 68,494 | 65,274 |
Real Estate | ||
Revenues | ||
Lease revenues | 262,939 | 169,432 |
Gross contract revenue | 15,996 | 7,218 |
Lease termination income and other | 3,270 | 942 |
Revenues | 282,205 | 177,592 |
Operating Expenses | ||
Depreciation and amortization | 111,413 | 64,920 |
General and administrative | 15,188 | 12,065 |
Reimbursable tenant costs | 13,171 | 6,219 |
Operating property expenses | 10,594 | 5,670 |
Property expenses, excluding reimbursable tenant costs | 9,912 | 4,229 |
Stock-based compensation expense | 2,800 | 4,306 |
Merger and other expenses | 146 | (37) |
Impairment charges | 0 | 4,790 |
Total operating expenses | 163,224 | 102,162 |
Other Income and Expenses | ||
Interest expense | (61,313) | (38,074) |
Other gains and (losses) | 970 | (2,887) |
Gain on sale of real estate, net | 933 | 6,732 |
Equity in earnings of equity method investments in the Managed Programs and real estate | (78) | 3,358 |
Total other income and expenses | (59,488) | (30,871) |
Income before income taxes | 59,493 | 44,559 |
(Provision for) benefit from income taxes | (6,159) | 3,533 |
Net Income | 53,334 | 48,092 |
Net income attributable to noncontrolling interests | 74 | (2,792) |
Net Income Attributable to W. P. Carey | $ 53,408 | $ 45,300 |
Segment Reporting - Income Fr_2
Segment Reporting - Income From Investment Management (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Expenses | ||
General and administrative | $ 21,285 | $ 18,583 |
Reimbursable costs from affiliates | 3,868 | 5,304 |
Subadvisor fees | 2,202 | 2,032 |
Stock-based compensation expense | 4,165 | 8,219 |
Depreciation and amortization | 112,379 | 65,957 |
Total operating expenses | 177,722 | 120,966 |
Other Income and Expenses | ||
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,491 | 15,325 |
Other gains and (losses) | 955 | (2,763) |
Total other income and expenses | (53,934) | (18,780) |
Income before income taxes | 66,667 | 62,064 |
Benefit from income taxes | 2,129 | 6,002 |
Net Income | 68,796 | 68,066 |
Net income attributable to noncontrolling interests | (302) | (2,792) |
Net Income Attributable to W. P. Carey | 68,494 | 65,274 |
Investment Management | ||
Investment Management: | ||
Gross contract revenue | 16,118 | 24,218 |
Operating Expenses | ||
General and administrative | 6,097 | 6,518 |
Reimbursable costs from affiliates | 3,868 | 5,304 |
Subadvisor fees | 2,202 | 2,032 |
Stock-based compensation expense | 1,365 | 3,913 |
Depreciation and amortization | 966 | 1,037 |
Total operating expenses | 14,498 | 18,804 |
Other Income and Expenses | ||
Equity in earnings of equity method investments in the Managed Programs and real estate | 5,569 | 11,967 |
Other gains and (losses) | (15) | 124 |
Total other income and expenses | 5,554 | 12,091 |
Income before income taxes | 7,174 | 17,505 |
Benefit from income taxes | 8,288 | 2,469 |
Net Income | 15,462 | 19,974 |
Net income attributable to noncontrolling interests | (376) | 0 |
Net Income Attributable to W. P. Carey | 15,086 | 19,974 |
Investment Management | Asset management revenue | ||
Investment Management: | ||
Gross contract revenue | 9,732 | 16,985 |
Investment Management | Reimbursable costs from affiliates | ||
Investment Management: | ||
Gross contract revenue | 3,868 | 5,304 |
Investment Management | Structuring and other advisory revenue | ||
Investment Management: | ||
Gross contract revenue | $ 2,518 | $ 1,929 |
Segment Reporting - Total Compa
Segment Reporting - Total Company (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information Profit Loss | ||
Revenues | $ 298,323 | $ 201,810 |
Operating expenses | 177,722 | 120,966 |
Other income and (expenses) | (53,934) | (18,780) |
Benefit from income taxes | 2,129 | 6,002 |
Net income attributable to noncontrolling interests | (302) | (2,792) |
Net Income Attributable to W. P. Carey | $ 68,494 | $ 65,274 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Total assets | $ 14,155,902 | $ 14,183,039 |
Real Estate | ||
Assets | ||
Total assets | 13,899,667 | 13,941,963 |
Investment Management | ||
Assets | ||
Total assets | $ 256,235 | $ 241,076 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 03, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Feb. 27, 2019 | |
Subsequent Event | ||||
Proceed from issuance of stock | $ 303,831,000 | |||
Prepayments of mortgage principal | 199,579,000 | $ 164,908,000 | ||
Common Stock | ||||
Subsequent Event | ||||
Proceed from issuance of stock | 4,000 | |||
ATM Program | ||||
Subsequent Event | ||||
Common stock maximum offering value | $ 248,800,000 | $ 500,000,000 | ||
ATM Program | Common Stock | ||||
Subsequent Event | ||||
Weighted average share price (usd per share) | $ 76.17 | |||
Proceed from issuance of stock | $ 303,800,000 | |||
Subsequent Events | ||||
Subsequent Event | ||||
Prepayments of mortgage principal | $ 185,000,000 | |||
Weighted average interest rate | 5.00% | |||
Subsequent Events | ATM Program | ||||
Subsequent Event | ||||
Common stock maximum offering value | $ 189,300,000 | |||
Subsequent Events | ATM Program | Common Stock | ||||
Subsequent Event | ||||
Proceed from issuance of stock | $ 59,000,000 | |||
Subsequent Events | Long Term Incentive Plan | ATM Program | Common Stock | ||||
Subsequent Event | ||||
Shares issued (shares) | 760,169 | |||
Weighted average share price (usd per share) | $ 78.27 |