COVER PAGE
COVER PAGE - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-13779 | |
Entity Registrant Name | W. P. Carey Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 45-4549771 | |
Entity Address, Street Address | One Manhattan West, 395 9th Avenue, 58th Floor | |
Entity Address, City | New York, | |
Entity Address, State | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 492-1100 | |
Title of each class | Common Stock, $0.001 Par Value | |
Trading Symbol | WPC | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 218,847,015 | |
Entity Central Index Key | 0001025378 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Investments in real estate: | |||
Land, buildings and improvements — net lease and other | $ 12,341,979 | $ 12,095,458 | |
Land, buildings and improvements — operating properties | 1,238,340 | 1,256,249 | |
Net investments in finance leases and loans receivable | 667,667 | 1,514,923 | |
In-place lease intangible assets and other | 2,256,793 | 2,308,853 | |
Above-market rent intangible assets | 676,666 | 706,773 | |
Investments in real estate | 17,181,445 | 17,882,256 | |
Accumulated depreciation and amortization | (3,096,516) | (3,005,479) | |
Assets held for sale, net | 7,743 | 37,122 | |
Net investments in real estate | 14,092,672 | 14,913,899 | |
Equity method investments | 356,220 | 354,261 | |
Cash and cash equivalents | 1,085,967 | 633,860 | |
Other assets, net | 1,261,222 | 1,096,474 | |
Goodwill | 973,204 | 978,289 | |
Total assets | [1] | 17,769,285 | 17,976,783 |
Debt: | |||
Senior unsecured notes, net | 6,519,887 | 6,035,686 | |
Unsecured term loans, net | 1,100,356 | 1,125,564 | |
Unsecured revolving credit facility | 15,005 | 403,785 | |
Non-recourse mortgages, net | 467,200 | 579,147 | |
Debt, net | 8,102,448 | 8,144,182 | |
Accounts payable, accrued expenses and other liabilities | 548,397 | 615,750 | |
Below-market rent intangible liabilities, net | 128,710 | 136,872 | |
Deferred income taxes | 155,716 | 180,650 | |
Dividends payable | 194,515 | 192,332 | |
Total liabilities | [1] | 9,129,786 | 9,269,786 |
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; $218,831,869 and $218,671,874 shares, respectively, issued and outstanding | 219 | 219 | |
Additional paid-in capital | 11,782,157 | 11,784,461 | |
Distributions in excess of accumulated earnings | (2,975,236) | (2,891,424) | |
Deferred compensation obligation | 78,379 | 62,046 | |
Accumulated other comprehensive loss | (252,640) | (254,867) | |
Total stockholders’ equity | 8,632,879 | 8,700,435 | |
Noncontrolling interests | 6,620 | 6,562 | |
Total equity | 8,639,499 | 8,706,997 | |
Total liabilities and equity | $ 17,769,285 | $ 17,976,783 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
W. P. Carey stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 218,831,869 | 218,671,874 |
Common stock, shares outstanding (in shares) | 218,831,869 | 218,671,874 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Real Estate: | ||||
Income from finance leases and loans receivable | $ 14,961 | $ 27,311 | $ 40,754 | $ 48,066 |
Investment Management: | ||||
Revenues | 389,672 | 452,578 | 779,470 | 880,368 |
Operating Expenses | ||||
Depreciation and amortization | 137,481 | 143,548 | 256,249 | 299,957 |
General and administrative | 24,168 | 24,912 | 52,036 | 51,461 |
Operating property expenses | 18,565 | 26,919 | 36,515 | 48,168 |
Impairment charges — real estate | 15,752 | 0 | 15,752 | 0 |
Reimbursable tenant costs | 14,004 | 20,523 | 26,977 | 42,499 |
Property expenses, excluding reimbursable tenant costs | 13,931 | 5,371 | 26,104 | 18,143 |
Stock-based compensation expense | 8,903 | 8,995 | 17,759 | 16,761 |
Merger and other expenses | 206 | 1,419 | 4,658 | 1,443 |
Total operating expenses | 233,010 | 231,687 | 436,050 | 478,432 |
Other Income and Expenses | ||||
Interest expense | (65,307) | (75,488) | (133,958) | (142,684) |
Gain on sale of real estate, net | 39,363 | 1,808 | 54,808 | 179,557 |
Non-operating income | 9,215 | 4,509 | 24,720 | 9,135 |
Earnings from equity method investments | 6,636 | 4,355 | 11,500 | 9,591 |
Other gains and (losses) | 2,504 | (1,366) | 16,343 | 6,734 |
Other Income and Expenses | (7,589) | (66,182) | (26,587) | 62,333 |
Income before income taxes | 149,073 | 154,709 | 316,833 | 464,269 |
Provision for income taxes | (6,219) | (10,129) | (14,893) | (25,248) |
Net Income | 142,854 | 144,580 | 301,940 | 439,021 |
Net loss (income) attributable to noncontrolling interests | 41 | 40 | 178 | (21) |
Net Income Attributable to W. P. Carey | $ 142,895 | $ 144,620 | $ 302,118 | $ 439,000 |
Basic Earnings Per Share (in dollars per share) | $ 0.65 | $ 0.67 | $ 1.37 | $ 2.06 |
Diluted Earnings Per Share (in dollars per share) | $ 0.65 | $ 0.67 | $ 1.37 | $ 2.05 |
Weighted-Average Shares Outstanding | ||||
Basic (in shares) | 220,195,910 | 215,075,114 | 220,113,753 | 213,522,150 |
Diluted (in shares) | 220,214,118 | 215,184,485 | 220,261,525 | 213,875,471 |
Owned Real Estate | ||||
Real Estate: | ||||
Lease revenues | $ 324,104 | $ 369,124 | $ 646,355 | $ 721,460 |
Income from finance leases and loans receivable | 14,961 | 27,311 | 40,754 | 48,066 |
Operating property revenues | 38,715 | 50,676 | 75,358 | 91,562 |
Other lease-related income | 9,149 | 5,040 | 11,304 | 18,413 |
Investment Management: | ||||
Operating property revenues | 38,715 | 50,676 | 75,358 | 91,562 |
Revenues | 386,929 | 452,151 | 773,771 | 879,501 |
Investment Management | ||||
Real Estate: | ||||
Operating property revenues | 2,743 | 427 | 5,699 | 867 |
Investment Management: | ||||
Operating property revenues | 2,743 | 427 | 5,699 | 867 |
Revenues | 2,743 | 427 | 5,699 | 867 |
Other advisory income and reimbursements | ||||
Real Estate: | ||||
Operating property revenues | 1,057 | 124 | 2,120 | 225 |
Investment Management: | ||||
Operating property revenues | 1,057 | 124 | 2,120 | 225 |
Asset management revenue | ||||
Real Estate: | ||||
Operating property revenues | 1,686 | 303 | 3,579 | 642 |
Investment Management: | ||||
Operating property revenues | $ 1,686 | $ 303 | $ 3,579 | $ 642 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 142,854 | $ 144,580 | $ 301,940 | $ 439,021 |
Other Comprehensive (Loss) Income | ||||
Unrealized (loss) gain on derivative instruments | (119) | (4,937) | 6,313 | (12,200) |
Foreign currency translation adjustments | (24) | 9,479 | (4,362) | 15,936 |
Net current period other comprehensive income (loss) | (143) | 4,542 | 1,951 | 3,736 |
Comprehensive Income | 142,711 | 149,122 | 303,891 | 442,757 |
Amounts Attributable to Noncontrolling Interests | ||||
Net loss (income) | 41 | 40 | 178 | (21) |
Foreign currency translation adjustments | 19 | 85 | 276 | 113 |
Comprehensive loss attributable to noncontrolling interests | 60 | 125 | 454 | 92 |
Comprehensive Income Attributable to W. P. Carey | $ 142,771 | $ 149,247 | $ 304,345 | $ 442,849 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS 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, 2022 | $ 9,008,644 | $ 8,993,646 | $ 211 | $ 11,706,836 | $ (2,486,633) | $ 57,012 | $ (283,780) | $ 14,998 |
Beginning equity balance (in shares) at Dec. 31, 2022 | 210,620,949 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards | (13,618) | (13,618) | (13,618) | |||||
Shares issued upon delivery of vested restricted share awards (in shares) | 193,619 | |||||||
Shares issued under ATM Program, net | 249,863 | 249,863 | $ 3 | 249,860 | ||||
Shares issued under ATM Program, net (in shares) | 3,081,867 | |||||||
Shares issued upon purchases under employee share purchase plan (in shares) | 4,735 | |||||||
Shares issued upon purchases under employee share purchase plan | 294 | 294 | 294 | |||||
Amortization of stock-based compensation expense | 16,761 | 16,761 | 16,761 | |||||
Acquisition of noncontrolling interest | 0 | 1,153 | 1,153 | (1,153) | ||||
Delivery (deferral) of deferred vested shares, net | 0 | 0 | (4,521) | 4,521 | ||||
Dividends declared | (460,375) | (460,375) | 2,295 | (463,183) | 513 | |||
Net income | 439,021 | 439,000 | 439,000 | 21 | ||||
Contributions from noncontrolling interests | 2,886 | 2,886 | ||||||
Distributions to noncontrolling interests | (280) | (280) | ||||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized gain (loss) on derivative instruments | (12,200) | (12,200) | ||||||
Foreign currency translation adjustments | 15,936 | 16,049 | 16,049 | (113) | ||||
Ending equity balance at Jun. 30, 2023 | 9,246,932 | 9,230,573 | $ 214 | 11,959,060 | (2,510,816) | 62,046 | (279,931) | 16,359 |
Ending equity balance (in shares) at Jun. 30, 2023 | 213,901,170 | |||||||
Beginning equity balance at Mar. 31, 2023 | 9,319,362 | 9,301,581 | $ 214 | 11,948,910 | (2,425,031) | 62,046 | (284,558) | 17,781 |
Beginning equity balance (in shares) at Mar. 31, 2023 | 213,890,620 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards | (292) | (292) | (292) | |||||
Shares issued upon delivery of vested restricted share awards (in shares) | 5,815 | |||||||
Shares issued upon purchases under employee share purchase plan (in shares) | 4,735 | |||||||
Shares issued upon purchases under employee share purchase plan | 294 | 294 | 294 | |||||
Amortization of stock-based compensation expense | 8,995 | 8,995 | 8,995 | |||||
Acquisition of noncontrolling interest | 0 | 1,153 | 1,153 | (1,153) | ||||
Dividends declared | (230,405) | (230,405) | (230,405) | |||||
Net income | 144,580 | 144,620 | 144,620 | (40) | ||||
Distributions to noncontrolling interests | (144) | (144) | ||||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized gain (loss) on derivative instruments | (4,937) | (4,937) | (4,937) | |||||
Foreign currency translation adjustments | 9,479 | 9,564 | 9,564 | (85) | ||||
Ending equity balance at Jun. 30, 2023 | 9,246,932 | 9,230,573 | $ 214 | 11,959,060 | (2,510,816) | 62,046 | (279,931) | 16,359 |
Ending equity balance (in shares) at Jun. 30, 2023 | 213,901,170 | |||||||
Beginning equity balance at Dec. 31, 2023 | $ 8,706,997 | 8,700,435 | $ 219 | 11,784,461 | (2,891,424) | 62,046 | (254,867) | 6,562 |
Beginning equity balance (in shares) at Dec. 31, 2023 | 218,671,874 | 218,671,874 | ||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards | $ (6,865) | (6,865) | (6,865) | |||||
Shares issued upon delivery of vested restricted share awards (in shares) | 156,070 | |||||||
Shares issued upon purchases under employee share purchase plan (in shares) | 3,925 | |||||||
Shares issued upon purchases under employee share purchase plan | 198 | 198 | 198 | |||||
Amortization of stock-based compensation expense | 17,759 | 17,759 | 17,759 | |||||
Delivery (deferral) of deferred vested shares, net | 0 | 0 | (14,445) | 14,445 | ||||
Dividends declared | (382,993) | (382,993) | 1,049 | (385,930) | 1,888 | |||
Net income | 301,940 | 302,118 | 302,118 | (178) | ||||
Contributions from noncontrolling interests | 622 | 622 | ||||||
Distributions to noncontrolling interests | (110) | (110) | ||||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized gain (loss) on derivative instruments | 6,313 | 6,313 | 6,313 | |||||
Foreign currency translation adjustments | (4,362) | (4,086) | (4,086) | (276) | ||||
Ending equity balance at Jun. 30, 2024 | $ 8,639,499 | 8,632,879 | $ 219 | 11,782,157 | (2,975,236) | 78,379 | (252,640) | 6,620 |
Ending equity balance (in shares) at Jun. 30, 2024 | 218,831,869 | 218,831,869 | ||||||
Beginning equity balance at Mar. 31, 2024 | $ 8,679,175 | 8,673,057 | $ 219 | 11,772,948 | (2,926,085) | 78,491 | (252,516) | 6,118 |
Beginning equity balance (in shares) at Mar. 31, 2024 | 218,823,907 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon delivery of vested restricted share awards | (4) | (4) | (4) | |||||
Shares issued upon delivery of vested restricted share awards (in shares) | 4,037 | |||||||
Shares issued upon purchases under employee share purchase plan (in shares) | 3,925 | |||||||
Shares issued upon purchases under employee share purchase plan | 198 | 198 | 198 | |||||
Amortization of stock-based compensation expense | 8,903 | 8,903 | 8,903 | |||||
Delivery (deferral) of deferred vested shares, net | 0 | 112 | (112) | |||||
Dividends declared | (192,046) | (192,046) | (192,046) | |||||
Net income | 142,854 | 142,895 | 142,895 | (41) | ||||
Contributions from noncontrolling interests | 622 | |||||||
Distributions to noncontrolling interests | (60) | (60) | ||||||
Other Comprehensive Income (Loss) | ||||||||
Unrealized gain (loss) on derivative instruments | (119) | (119) | (119) | |||||
Foreign currency translation adjustments | (24) | (5) | (5) | (19) | ||||
Ending equity balance at Jun. 30, 2024 | $ 8,639,499 | $ 8,632,879 | $ 219 | $ 11,782,157 | $ (2,975,236) | $ 78,379 | $ (252,640) | $ 6,620 |
Ending equity balance (in shares) at Jun. 30, 2024 | 218,831,869 | 218,831,869 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 0.870 | $ 1.069 | $ 1.735 | $ 2.136 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows — Operating Activities | ||
Net income | $ 301,940 | $ 439,021 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 265,654 | 309,988 |
Gain on sale of real estate, net | (54,808) | (179,557) |
Straight-line rent adjustments | (35,893) | (35,965) |
Stock-based compensation expense | 17,759 | 16,761 |
Impairment charges — real estate | 15,752 | 0 |
Distributions of earnings from equity method investments | 12,147 | 9,931 |
Earnings from equity method investments | (11,500) | (9,591) |
Gain on repayment of secured loan receivable | (10,650) | 0 |
Amortization of rent-related intangibles and deferred rental revenue | 9,697 | 19,793 |
Decrease in allowance for credit losses | (5,097) | (3,629) |
Deferred income tax (benefit) expense | (2,765) | 1,643 |
Net realized and unrealized gains on equity securities, extinguishment of debt, foreign currency exchange rate movements, and other | (633) | (2,126) |
Proceeds from sales of net investments in sales-type leases | 807,080 | 0 |
Net changes in other operating assets and liabilities | (52,088) | (35,935) |
Net Cash Provided by Operating Activities | 1,256,595 | 530,334 |
Cash Flows — Investing Activities | ||
Purchases of real estate | (448,088) | (895,034) |
Proceeds from sales of real estate | 195,022 | 44,061 |
Investments in loans receivable | (83,816) | 0 |
Funding for real estate construction, redevelopments, and other capital expenditures on real estate | (47,207) | (62,135) |
Value added taxes paid in connection with acquisition of real estate | (29,097) | (5,543) |
Proceeds from repayment of loans receivable | 24,000 | 0 |
Value added taxes refunded in connection with acquisition of real estate | 8,728 | 6,767 |
Capital contributions to equity method investments | (5,024) | (23,677) |
(Release) receipt of tenant-funded escrow for investing activities | (4,959) | 29,787 |
Other investing activities, net | 2,474 | (9,787) |
Return of capital from equity method investments | 803 | 9,943 |
Net Cash Used in Investing Activities | (387,164) | (905,618) |
Cash Flows — Financing Activities | ||
Repayments of Unsecured Revolving Credit Facility | (1,248,701) | (1,577,153) |
Proceeds from issuance of Senior Unsecured Notes | 1,098,314 | 0 |
Proceeds from Unsecured Revolving Credit Facility | 868,422 | 1,820,608 |
Repayment of Senior Unsecured Notes | (500,000) | 0 |
Dividends paid | (380,810) | (456,171) |
Payments of mortgage principal | (127,683) | (138,764) |
Other financing activities, net | (12,351) | 2,359 |
Payment of financing costs | (8,853) | (166) |
Payments for withholding taxes upon delivery of equity-based awards | (6,866) | (13,618) |
Contributions from noncontrolling interests | 622 | 2,886 |
Distributions to noncontrolling interests | (110) | (280) |
Proceeds from term loans | 0 | 546,014 |
Proceeds from shares issued under forward equity, net of selling costs | 0 | 249,806 |
Net Cash (Used in) Provided by Financing Activities | (318,016) | 435,521 |
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 | (13,716) | 1,909 |
Net increase in cash and cash equivalents and restricted cash | 537,699 | 62,146 |
Cash and cash equivalents and restricted cash, beginning of period | 691,971 | 224,141 |
Cash and cash equivalents and restricted cash, end of period | $ 1,229,670 | $ 286,287 |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2024 | |
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 that are leased 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. In September 2023, we announced a plan to exit the office assets within our portfolio by (i) spinning off 59 office properties into Net Lease Office Properties (“NLOP”), so that it became a separate publicly-traded real estate investment trust (the “Spin-Off”), and (ii) implementing an asset sale program to dispose of certain office properties retained by us (the “Office Sale Program”), which is substantially completed. On November 1, 2023, we completed the Spin-Off, contributing 59 office properties to NLOP. Following the closing of the Spin-Off, NLOP operates as a separate publicly-traded REIT, which we externally manage pursuant to certain advisory agreements (the “NLOP Advisory Agreements”). Through the date of this Report, we have disposed of 85 of the office properties subject to the Office Sale Program ( Note 14 , Note 15 ). The final property is under a binding contract for sale scheduled to close in December 2024, which will complete the Office Sale Program. Effective January 1, 2024, we no longer separately analyze our business between real estate operations and investment management operations, and instead view the business as one reportable segment, since our investment management operations have been determined to be both quantitatively and qualitatively insignificant to the Company’s business. Our business is characterized as investing in operationally-critical, single-tenant commercial real estate properties that are leased on a long-term basis. These economic characteristics are similar across various property types, geographic locations, and industries in which our tenants operate and therefore considered one operating segment. The operating results of both the real estate and investment management activities are regularly reviewed, in the aggregate, by our chief operating decision maker to evaluate performance and allocate resources. Accordingly, all operations have been considered to represent one reportable segment, which are reported on our consolidated statements of income and our consolidated balance sheets. As a result of this change, we have conformed prior period segment information to reflect how we currently view our business. Lease revenues 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 June 30, 2024, our portfolio was comprised of our full or partial ownership interests in 1,291 properties, totaling approximately 170 million square feet, substantially all of which were net leased to 346 tenants, with a weighted-average lease term of 12.0 years and an occupancy rate of 98.8%. In addition, at June 30, 2024, our portfolio was comprised of full or partial ownership interests in 95 operating properties, including 89 self-storage properties, four hotels, and two student housing properties, totaling approximately 7.3 million square feet. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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 complete 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 presentation 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, 2023, which are included in the 2023 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 VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2023 Annual Report. During the six months ended June 30, 2024, we declassified ten entities as VIEs, primarily related to the completion of certain tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”) and dispositions. At June 30, 2024 and December 31, 2023, we considered 12 and 21 entities, respectively, to be VIEs, of which we consolidated seven and 15, respectively, 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): June 30, 2024 December 31, 2023 Land, buildings and improvements — net lease and other $ 126,223 $ 237,858 Land, buildings and improvements — operating properties — 39,422 Net investments in finance leases and loans receivable 159,103 595,524 In-place lease intangible assets and other 11,402 40,650 Above-market rent intangible assets 3,894 6,828 Accumulated depreciation and amortization (17,302) (23,580) Total assets 303,241 947,509 Non-recourse mortgages, net $ 50,793 $ 59,715 Below-market rent intangible liabilities, net 28 32 Total liabilities 67,580 101,047 At June 30, 2024 and December 31, 2023, our five and six unconsolidated VIEs, respectively, included our interests in (i) three unconsolidated real estate investments, which we account for under the equity method of accounting (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), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. In addition, at December 31, 2023, we had a variable interest in NLOP, which we also deemed a VIE, due to our guarantee of a non-recourse mortgage loan with approximately $19.0 million principal balance outstanding as of December 31, 2023 encumbering a property that was derecognized in the Spin-Off ( Note 1 ). This non-recourse mortgage loan was repaid by NLOP during the first quarter of 2024 and as a result, NLOP is not deemed a VIE as of June 30, 2024. As of June 30, 2024, and December 31, 2023, the net carrying amount of our investments in these entities was $732.6 million and $729.8 million, respectively, and our maximum exposure to loss in these entities was limited to our investments. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Reimbursable costs from affiliates (revenues) are now included within Other advisory income and reimbursements. Reimbursable affiliate costs (expenses) are now included within General and administrative expenses. Previously, such amounts were presented in their own financial statement line items on the consolidated statements of income. Revenue Recognition There have been no significant changes in our policies for revenue from contracts under Accounting Standards Codification (“ASC”) 606 from what was disclosed in the 2023 Annual Report. ASC 606 does not apply to our lease revenues, which constitute a majority of our revenues, but primarily applies to (i) revenues generated from our hotel operating properties and (ii) investment management revenues. Revenue from contracts primarily represented hotel operating property revenues of $12.4 million and $24.7 million for the three months ended June 30, 2024 and 2023, respectively, and $22.5 million and $40.2 million for the six months ended June 30, 2024 and 2023, respectively, generated from 13 hotels located in the United States (12 of which were reclassified from net leases to operating properties in the first quarter of 2023; eight of these properties were sold during 2023 and one was sold during the second quarter of 2024). Investment management revenue from contracts under ASC 606 is discussed in Note 3 . Cash and Cash Equivalents and 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): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 1,085,967 $ 633,860 Restricted cash (a) 143,703 58,111 Total cash and cash equivalents and restricted cash $ 1,229,670 $ 691,971 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. The amount as of June 30, 2024 includes $106.9 million of proceeds from certain dispositions, which are held by an intermediary and have been designated for future 1031 Exchange transactions. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Advisory Agreements and Partnership Agreements with NLOP and CESH We currently have advisory arrangements with NLOP and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain administrative expenses. The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Asset management revenue (a) (b) $ 1,686 $ 303 $ 3,579 $ 642 Administrative reimbursements (a) (c) 1,000 — 2,000 — Reimbursable costs from affiliates (a) (c) 57 124 120 225 $ 2,743 $ 427 $ 5,699 $ 867 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 NLOP $ 2,599 $ — $ 5,403 $ — CESH 144 427 296 867 $ 2,743 $ 427 $ 5,699 $ 867 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Asset management revenue in the consolidated statements of income. (c) Included within Other advisory income and reimbursements in the consolidated statements of income. The following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands): June 30, 2024 December 31, 2023 Asset management fees receivable $ 542 $ 1,349 Accounts receivable 514 768 Reimbursable costs 52 59 $ 1,108 $ 2,176 Asset Management Revenue Under the advisory agreement with CESH, we earn asset management revenue at a rate of 1.0% based on its gross assets at fair value, paid in cash. Under the advisory agreement with NLOP, we earn an asset management fee, which was initially set at an annual amount of $7.5 million and is being reduced proportionately following the disposition of each portfolio property. Administrative Reimbursements Under the advisory agreement with NLOP, we earn a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash. Reimbursable Costs from Affiliates CESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred. Back-End Fees and Interests in CESH Under our advisory arrangements with CESH, we may also receive compensation in connection with providing a liquidity event for its investors. Such back-end fees or interests include interests in disposition proceeds. There can be no assurance as to whether or when any back-end fees or interests will be realized. Other Transactions with Affiliates and Related Parties Other At June 30, 2024, we owned interests in eight jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate four such investments and account for the remaining four investments under the equity method of accounting ( Note 7 ). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option ( Note 7 ). |
Land, Buildings and Improvement
Land, Buildings and Improvements, and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Land, Buildings and Improvements, and Assets Held for Sale | Land, Buildings and Improvements, and Assets Held for Sale Land, Buildings and Improvements — Net Lease and Other Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Land $ 2,299,528 $ 2,248,300 Buildings and improvements 10,004,871 9,801,596 Real estate under construction 37,580 45,562 Less: Accumulated depreciation (1,589,966) (1,509,730) $ 10,752,013 $ 10,585,728 During the six months ended June 30, 2024, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro decreased by 3.1% to $1.0705 from $1.1050. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements — net lease and other decreased by $111.7 million from December 31, 2023 to June 30, 2024. In connection with changes in lease classifications due to extensions of the underlying leases or entering into a new lease, we reclassified 14 properties with an aggregate carrying value of $105.5 million from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other during the six months ended June 30, 2024 ( Note 5 ). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $72.5 million and $79.7 million for the three months ended June 30, 2024 and 2023, respectively, and $144.1 million and $171.0 million for the six months ended June 30, 2024 and 2023, respectively. Acquisitions of Real Estate During the six months ended June 30, 2024, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Capitalized Costs Doncaster, United Kingdom (a) 2 1/9/2024 Retail $ 30,055 Various, Italy (a) 5 1/30/2024 Industrial, Warehouse 148,130 Laval, Canada (a) 1 3/26/2024 Industrial 2,604 Commercial Point, Ohio 1 4/5/2024 Warehouse 94,220 Tucson, Arizona 1 5/13/2024 Warehouse 38,784 Portfolio Acquisition: Various, United States 5 5/15/2024 Industrial, Warehouse 44,400 Various, United States 4 5/15/2024 Industrial 23,330 Sylacauga, Alabama 1 5/15/2024 Industrial 5,852 Moxee, Washington and La Porte, Indiana (b) 2 6/26/2024 Industrial 37,019 Portfolio Total 12 110,601 Mesa and Laveen, Arizona 2 6/3/2024 Retail 26,964 24 $ 451,358 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) In connection with this acquisition, we assumed a non-recourse mortgage loan encumbering the properties with an outstanding principal balance of $21.9 million ( Note 10 ). The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 82,449 Buildings and improvements 311,003 Intangible assets and liabilities: In-place lease (weighted-average expected life of 14.9 years) 56,855 Below-market rent (expected life of 12.8 years) (408) Debt discount and deferred financing costs on non-recourse mortgage loan assumed 1,459 $ 451,358 Real Estate Under Construction — Net Lease and Operating Properties During the six months ended June 30, 2024, we capitalized real estate under construction totaling $24.2 million. The number of construction projects in progress with balances included in real estate under construction was three and 11 as of June 30, 2024 and December 31, 2023, respectively. Aggregate unfunded commitments totaled approximately $92.6 million and $71.8 million as of June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024, we completed the following construction projects (dollars in thousands): Property Location(s) Primary Transaction Type Number of Properties Date of Completion Property Type Total Capitalized Costs Salisbury, North Carolina Expansion 1 3/8/2024 Industrial $ 14,737 Little Rock, Arkansas Expansion 1 4/10/2024 Self-Storage (Operating) 3,280 Irvine, California Redevelopment 1 6/27/2024 Industrial 15,222 3 $ 33,239 During the six months ended June 30, 2024, we committed to fund a redevelopment project for $44.1 million. We currently expect to complete the project in 2025. Capitalized interest incurred during construction was $0.2 million and less than $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0.4 million and $0.1 million for the six months ended June 30, 2024 and 2023, respectively, which reduces Interest expense in the consolidated statements of income. Dispositions of Properties During the six months ended June 30, 2024, we sold 14 properties, which were classified as Land, buildings and improvements — net lease and other. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $102.9 million from December 31, 2023 to June 30, 2024 ( Note 14 ). Other Lease-Related Income 2024 — For the three and six months ended June 30, 2024, other lease-related income on our consolidated statements of income included other lease-related settlements totaling $8.9 million and $10.7 million, respectively. 2023 — For the three and six months ended June 30, 2023, other lease-related income on our consolidated statements of income included: (i) other lease-related settlements totaling $4.3 million and $5.6 million, respectively and (ii) lease termination income totaling $11.4 million for the six months ended June 30, 2023, received from two tenants in connection with the sales of the properties they occupied. 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Lease income — fixed $ 287,709 $ 324,468 $ 573,883 $ 632,534 Lease income — variable (a) 36,395 44,656 72,472 88,926 Total operating lease income $ 324,104 $ 369,124 $ 646,355 $ 721,460 __________ (a) Includes (i) rent increases based on changes in the U.S. Consumer Price Index and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. Land, Buildings and Improvements — Operating Properties At June 30, 2024, Land, buildings and improvements — operating properties consisted of our investments in 80 consolidated self-storage properties, four consolidated hotels, and two consolidated student housing properties. At December 31, 2023, Land, buildings and improvements — operating properties consisted of our investments in 80 consolidated self-storage properties, five consolidated hotels, and two consolidated student housing properties. Below is a summary of our Land, buildings and improvements — operating properties (in thousands): June 30, 2024 December 31, 2023 Land $ 147,170 $ 150,084 Buildings and improvements 1,091,170 1,104,635 Real estate under construction — 1,530 Less: Accumulated depreciation (88,885) (80,057) $ 1,149,455 $ 1,176,192 During the six months ended June 30, 2024, we sold one hotel operating property, which was classified as Land, buildings and improvements — operating properties. As a result, the carrying value of our Land, buildings and improvements — operating properties decreased by $14.3 million from December 31, 2023 to June 30, 2024 ( Note 14 ). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements attributable to operating properties was $7.4 million and $7.7 million for the three months ended June 30, 2024 and 2023, respectively, and $14.7 million and $14.9 million for the six months ended June 30, 2024 and 2023, respectively. Assets Held for Sale, Net Below is a summary of our properties held for sale (in thousands): June 30, 2024 December 31, 2023 Land, buildings and improvements — net lease and other $ 10,676 $ 46,986 In-place lease intangible assets and other 778 5,222 Above-market rent intangible assets — 8,374 Accumulated depreciation and amortization (3,711) (23,460) Assets held for sale, net $ 7,743 $ 37,122 At June 30, 2024, we had one property classified as Assets held for sale, net, with a carrying value of $7.7 million. This property was sold in July 2024 ( Note 1 5 ). At December 31, 2023 we had two properties classified as Assets held for sale, net, with an aggregate carrying value of $37.1 million. These properties were sold in January 2024. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2024 | |
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 finance leases and loans receivable (net of allowance for credit losses). Operating leases are not included in finance receivables. Finance Receivables Net investments in finance leases and loans receivable are summarized as follows (in thousands): Maturity Date June 30, 2024 December 31, 2023 Net investments in direct financing leases (a) 2024 – 2036 $ 320,714 $ 431,328 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 311,068 236,611 Net investments in sales-type leases (c) 2024 20,885 835,734 Secured loans receivable (d) 2024 15,000 11,250 $ 667,667 $ 1,514,923 __________ (a) Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases . (b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $6.2 million and $0.8 million as of June 30, 2024 and December 31, 2023, respectively. (c) These investments are assessed for credit loss allowances but no such allowances were recorded as of June 30, 2024 or December 31, 2023. (d) Amounts are net of allowance for credit losses of $2.1 million as of December 31, 2023. No such allowance was recorded as of June 30, 2024. During the six months ended June 30, 2024, the U.S. dollar strengthened against the euro, resulting in a $15.0 million decrease in the carrying value of Net investments in finance leases and loans receivable from December 31, 2023 to June 30, 2024. Income from finance leases and loans receivable is summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investments in direct financing leases $ 8,763 $ 12,751 $ 17,692 $ 25,449 Sale-leaseback transactions accounted for as loans receivable 5,620 3,684 9,521 7,343 Net investments in sales-type leases 578 9,688 11,576 12,917 Secured loans receivable — 1,188 1,965 2,357 $ 14,961 $ 27,311 $ 40,754 $ 48,066 Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Lease payments receivable $ 197,995 $ 285,512 Unguaranteed residual value 302,667 434,234 500,662 719,746 Less: unearned income (168,306) (251,441) Less: allowance for credit losses (a) (11,642) (36,977) $ 320,714 $ 431,328 __________ (a) During the six months ended June 30, 2024 and 2023, we recorded a net release of allowance for credit losses of $8.4 million and $3.6 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2024, we reduced the allowance for credit losses balance by $17.0 million, in connection with the reclassification of certain properties from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below. During the six months ended June 30, 2024, we reclassified 14 properties with an aggregate carrying value of $105.5 million from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other in connection with changes in lease classifications due to extensions of the underlying leases or entering into a new lease. In addition, during the six months ended June 30, 2024, we sold one property accounted for as a direct financing lease that had a net carrying value of $5.8 million. Loans Receivable During the six months ended June 30, 2024, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Investment Various, Italy (a) 4 3/26/2024 Industrial, Warehouse $ 83,890 4 $ 83,890 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. In March 2024, a secured loan receivable was repaid to us for $24.0 million. In connection with this repayment, we recorded a release of allowance for credit losses of $2.1 million since the loan principal was fully repaid. In addition, we collected $1.4 million of unpaid interest related to a prior year upon repayment of this secured loan receivable, which was included in Income from finance leases and loans receivable on the consolidated statements of income for the six months ended June 30, 2024. In June 2024, in connection with a property disposition, we provided financing to the buyer of $15.0 million with an interest rate of 15.0%, maturing in August 2024. This secured loan receivable is included Net investments in finance leases and loans receivable on our consolidated balance sheets. Net Investments in Sales-Type Leases During the six months ended June 30, 2024, we completed the sale of a portfolio of 78 net-lease self-storage properties located in the United States, which was accounted for as net investments in sales-type leases and included in Net investments in finance leases and loans receivable in the consolidated balance sheets. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $451.4 million from December 31, 2023 to June 30, 2024 ( N o t e 1 4 ). The tenant had previously provided notice of its intention to exercise its option to repurchase the properties during the first quarter of 2023. We recognized an aggregate Gain on sale of real estate, net, of $176.2 million during the six months ended June 30, 2023 related to this transaction. During the six months ended June 30, 2024, we completed the sale of a portfolio of 70 net-lease office properties located in Andalusia, Spain, to the tenant occupying the properties, which was accounted for as net investments in sales-type leases and included in Net investments in finance leases and loans receivable in the consolidated balance sheets. As a result, the carrying value of Net investments in finance leases and loans receivable decreased by $359.3 million from December 31, 2023 to June 30, 2024 ( Note 14 ). We had previously entered into an agreement to sell the portfolio to the tenant occupying the properties during the fourth quarter of 2023. We recognized an aggregate Gain on sale of real estate, net, of $59.1 million during the three months ended December 31, 2023 related to this transaction. Prior to the reclassifications of certain properties to net investments in sales-type leases, earnings from such investments were recognized in Lease revenues in the consolidated financial statements. Net investments in sales-type leases is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Lease payments receivable (a) $ 21,460 $ 849,881 21,460 849,881 Less: unearned income (575) (14,147) $ 20,885 $ 835,734 __________ (a) Includes estimated purchase price and total rents owed. 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 June 30, 2024 and December 31, 2023, no material balances of our finance receivables were past due. Other than the lease extensions and new lease noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the six months ended June 30, 2024. 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. A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 1 – 3 17 18 $ 592,885 $ 1,338,877 4 7 8 92,614 215,953 5 — — — — $ 685,499 $ 1,554,830 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles 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 intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent intangibles are included in Below-market rent intangible liabilities, net in the consolidated financial statements. Net lease intangibles recorded in connection with property acquisitions during the six months ended June 30, 2024 are described in Note 4 . Goodwill decreased by $5.1 million during the six months ended June 30, 2024 due to foreign currency translation adjustments. Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): June 30, 2024 December 31, 2023 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 $ 2,334 $ (726) $ 1,608 $ 20,745 $ (19,569) $ 1,176 2,334 (726) 1,608 20,745 (19,569) 1,176 Lease Intangibles: In-place lease 2,120,227 (945,307) 1,174,920 2,168,739 (934,138) 1,234,601 Above-market rent 676,666 (472,358) 204,308 706,773 (481,554) 225,219 2,796,893 (1,417,665) 1,379,228 2,875,512 (1,415,692) 1,459,820 Goodwill Goodwill 973,204 — 973,204 978,289 — 978,289 Total intangible assets $ 3,772,431 $ (1,418,391) $ 2,354,040 $ 3,874,546 $ (1,435,261) $ 2,439,285 Finite-Lived Intangible Liabilities Below-market rent $ (202,445) $ 73,735 $ (128,710) $ (203,413) $ 66,541 $ (136,872) Total intangible liabilities $ (202,445) $ 73,735 $ (128,710) $ (203,413) $ 66,541 $ (136,872) During the six months ended June 30, 2024, the U.S. dollar strengthened against the euro, resulting in a decrease of $12.9 million in the carrying value of our net intangible assets from December 31, 2023 to June 30, 2024. Net amortization of intangibles, including the effect of foreign currency translation, was $62.0 million and $63.6 million for the three months ended June 30, 2024 and 2023, respectively, and $104.7 million and $131.2 million for the six months ended June 30, 2024 and 2023, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development and in-place lease intangibles is included in Depreciation and amortization. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments Interests in Unconsolidated Real Estate Investments and CESH We own interests in certain unconsolidated real estate investments with third parties and in Carey European Student Housing Fund I, L.P. (“CESH”). There have been no significant changes in our equity method investment policies from what was disclosed in the 2023 Annual Report. 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 third parties. We account for these investments under the equity method of accounting. We account for our interest in CESH under the equity method because, as its advisor, we do not exert control over, but we do have the ability to exercise significant influence over, CESH. The following table sets forth our ownership interests in our equity method investments and their respective carrying values (dollars in thousands): Carrying Value at Lessee/Fund/Description Ownership Interest June 30, 2024 December 31, 2023 Las Vegas Retail Complex (a) N/A $ 239,848 $ 235,979 Johnson Self Storage 90.00% 63,130 63,934 Kesko Senukai (b) 70.00% 27,723 28,860 Harmon Retail Corner (c) 15.00% 24,343 24,229 CESH (d) 2.43% 1,176 1,259 $ 356,220 $ 354,261 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2024) for a retail complex in Las Vegas, Nevada. Through June 30, 2024, we funded $236.3 million, including $4.9 million during the six months ended June 30, 2024. Equity income from this investment was $8.3 million and $5.9 million for the six months ended June 30, 2024 and 2023, respectively, which was recognized within Earnings from equity method investments in our consolidated statements of income. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment is reported using the hypothetical liquidation at book value model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) 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 June 30, 2024 is based on the estimated fair value of our investment as of March 31, 2024. We received aggregate distributions of $13.0 million and $19.9 million from our unconsolidated real estate investments for the six months ended June 30, 2024 and 2023, respectively. At June 30, 2024 and December 31, 2023, the aggregate unamortized basis differences on our unconsolidated real estate investments were $17.4 million and $18.0 million, respectively. We received a distribution from CESH during the six months ended June 30, 2023 of $0.5 million. We did not receive a distribution from CESH during the six months ended June 30, 2024. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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, 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. 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 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 Method Investment in CESH — We have elected to account for our investment in CESH, which is included in Equity method investments 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. Investment in Shares of Lineage — We have elected to apply the measurement alternative under Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10) to account for our investment in 5,541,478 shares of Lineage (a cold storage REIT), which is included in Other assets, net in the consolidated financial statements. Under this alternative, the carrying value is adjusted for any impairments or changes in fair value resulting from observable transactions for similar or identical investments in the issuer. We classified this investment as Level 3 because it is not traded in an active market. During the six months ended June 30, 2024, we received cash dividends of $3.0 million from our investment in shares of Lineage, which was recorded within Non-operating income in the consolidated financial statements. The fair value of this investment was $404.9 million at both June 30, 2024 and December 31, 2023. 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. During the six months ended June 30, 2024, we received liquidating distributions from our investment in shares of GCIF totaling $0.4 million, which reduced the cost basis of our investment. The fair value of our investment in shares of GCIF was $0.4 million and $0.8 million at June 30, 2024 and at December 31, 2023, respectively. We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the six months ended June 30, 2024 or 2023. 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. Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 and 3 $ 6,519,887 $ 6,055,979 $ 6,035,686 $ 5,598,423 Non-recourse mortgages, net (a) (b) (d) 3 467,200 466,516 579,147 572,553 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $28.0 million and $21.0 million at June 30, 2024 and December 31, 2023, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.2 million and less than $0.1 million at June 30, 2024 and December 31, 2023, respectively. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $25.6 million and $20.1 million at June 30, 2024 and December 31, 2023, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $3.8 million and $4.3 million at June 30, 2024 and December 31, 2023, respectively. (c) For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ( Note 10 )), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category. (d) We determined the estimated fair value of our non-recourse mortgage loans 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 consider 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 and Unsecured Term Loan due 2026 ( Note 10 ), but excluding finance receivables ( Note 5 ), had fair values that approximated their carrying values at both June 30, 2024 and December 31, 2023. 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. There have been no significant changes in our impairment policies from what was disclosed in the 2023 Annual Report. The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2024 2023 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Real estate $ 75,944 $ 15,752 $ — $ — $ 15,752 $ — Six Months Ended June 30, 2024 2023 Fair Value Impairment Fair Value Impairment Impairment Charges Real estate $ 75,944 $ 15,752 $ — $ — $ 15,752 $ — Impairment charges, and their related triggering events and fair value measurements, recognized during the three and six months ended June 30, 2024, were as follows (we did not incur any impairment charges during the three and six months ended June 30, 2023): Real Estate The impairment charges described below are reflected within Impairment charges — real estate in our consolidated statements of income. 2024 — During the three and six months ended June 30, 2024, we recognized impairment charges totaling $15.8 million on three properties in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices. Two of these properties were sold in July 2024 ( Note 15 ). |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 ( Note 10 ) and unhedged variable-rate non-recourse mortgage loans. 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, Senior Unsecured Notes, and other securities, 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 There have been no significant changes in our derivative financial instrument policies from what was disclosed in the 2023 Annual Report. At both June 30, 2024 and December 31, 2023, 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 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Foreign currency collars Other assets, net $ 16,351 $ 14,103 $ — $ — Interest rate swaps Other assets, net 603 995 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (617) (4,029) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (168) (1,678) 16,954 15,098 (785) (5,707) Derivatives Not Designated as Hedging Instruments Foreign currency collars Other assets, net 301 — — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (217) 301 — — (217) Total derivatives $ 17,255 $ 15,098 $ (785) $ (5,924) 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 (Loss) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2024 2023 2024 2023 Interest rate swaps $ (447) $ 1,827 $ 1,183 $ 1,197 Foreign currency collars 332 (6,412) 5,660 (12,638) Interest rate cap — 1 — (6) Total $ (115) $ (4,584) $ 6,843 $ (11,447) Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Foreign currency collars Non-operating income $ 2,877 $ 3,564 $ 5,066 $ 7,869 Interest rate swaps and cap Interest expense 701 103 1,529 473 Total $ 3,578 $ 3,667 $ 6,595 $ 8,342 __________ (a) Excludes net losses of less than $0.1 million and $0.4 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2024 and 2023, respectively, and net losses of $0.5 million and $0.8 million for the six months ended June 30, 2024 and 2023, respectively. Amounts reported in Other comprehensive (loss) 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 (loss) income related to foreign currency derivative contracts will be reclassified to Non-operating income when the hedged foreign currency contracts are settled. As of June 30, 2024, we estimate that an additional $0.5 million and $10.1 million will be reclassified as Interest expense and Non-operating income, 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 in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest rate swaps Interest expense $ (727) $ (131) $ (1,587) $ (537) Foreign currency collars Non-operating income 448 183 1,376 (16) Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 25 98 517 (41) Total $ (254) $ 150 $ 306 $ (594) 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 have obtained, and may in the future obtain, variable-rate (i) non-recourse mortgage loans and (ii) unsecured term loans ( Note 10 ) 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 that our consolidated subsidiaries had outstanding at June 30, 2024 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 3 21,268 USD $ 557 Interest rate swaps 5 544,327 EUR (122) $ 435 __________ (a) Fair value amounts are based on the exchange rate of the euro at June 30, 2024, as applicable. Foreign Currency Collars We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling and certain other currencies. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency collars. 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. 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 collars have maturities of 59 months or less. The following table presents the foreign currency collars that we had outstanding at June 30, 2024 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at June 30, 2024 Designated as Cash Flow Hedging Instruments Foreign currency collars 51 256,000 EUR $ 14,322 Foreign currency collars 30 19,080 GBP 1,412 Not Designated as Cash Flow Hedging Instruments Foreign currency collars 2 10,000 EUR 301 $ 16,035 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 June 30, 2024. At June 30, 2024, our total credit exposure and the maximum exposure to any single counterparty was $16.7 million and $3.0 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 June 30, 2024, 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 $0.8 million and $5.9 million at June 30, 2024 and December 31, 2023, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at June 30, 2024 or December 31, 2023, we could have been required to settle our obligations under these agreements at their aggregate termination value of $0.8 million and $6.0 million, respectively. Net Investment Hedges Certain borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in Note 10 ) denominated in euro, British pounds sterling, or Japanese yen are designated as, and are effective as, economic hedges of our net investments in foreign entities. Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our borrowings under our euro-denominated senior notes and changes in the value of our euro, Japanese yen, and British pound sterling borrowings under our Senior Unsecured 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 (loss) income as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $37.4 million and $2.1 million for the three months ended June 30, 2024 and 2023, respectively, and $125.8 million and $(69.4) million for the six months ended June 30, 2024 and 2023, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan Agreement As of both June 30, 2024 and December 31, 2023, we had a €500.0 million unsecured term loan outstanding maturing on April 24, 2026 (our “Unsecured Term Loan due 2026”), comprised of (i) a €300.0 million term loan (our “Term Loan due 2026”) and (ii) a €200.0 million delayed draw term loan (our “Delayed Draw Term Loan due 2026”). The Unsecured Term Loan due 2026 is incorporated into the Senior Unsecured Credit Facility, which is described below. Senior Unsecured Credit Facility As of both June 30, 2024 and December 31, 2023, we had a multi-currency senior unsecured credit facility, comprised of (i) a $2.0 billion unsecured revolving credit facility maturing on February 14, 2029 (our “Unsecured Revolving Credit Facility”), (ii) a £270.0 million term loan maturing on February 14, 2028 (our “GBP Term Loan due 2028”), and (iii) a €215.0 million term loan maturing on February 14, 2028 (our “EUR Term Loan due 2028”). We have an option to extend each of these term loans by up to an additional year, subject to certain customary conditions. We refer to these term loans collectively as the “Unsecured Term Loans due 2028.” We refer to our Unsecured Term Loan due 2026 and Unsecured Term Loans due 2028 collectively as our “Unsecured Term Loans.” We refer to our Unsecured Revolving Credit Facility and our Unsecured Term Loans collectively as our “Senior Unsecured Credit Facility.” As of June 30, 2024, the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility was able to be increased up to an amount not to exceed the U.S. dollar equivalent of $4.35 billion, subject to the conditions to increase set forth in our credit agreement. At June 30, 2024, our Unsecured Revolving Credit Facility had available capacity of approximately $2.0 billion (net of amounts reserved for standby letters of credit totaling $5.8 million). We incur an annual facility fee of 0.15% of the total commitment on our Unsecured Revolving Credit Facility based on our credit ratings of BBB+ and Baa1, which is included within Interest expense in our consolidated statements of income. The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Senior Unsecured Credit Facility Interest Rate at June 30, 2024 (a) Maturity Date at June 30, 2024 Principal Outstanding Balance at June 30, 2024 December 31, 2023 Unsecured Term Loans: (b) Unsecured Term Loan due 2026 — borrowing in euros (c) 4.34% 4/24/2026 $ 535,250 $ 552,500 GBP Term Loan due 2028 — borrowing in British pounds sterling (d) SONIA + 0.85% 2/14/2028 341,495 343,306 EUR Term Loan due 2028 — borrowing in euros (e) EURIBOR + 0.85% 2/14/2028 230,158 237,575 1,106,903 1,133,381 Unsecured Revolving Credit Facility: Borrowing in Japanese yen (f) TIBOR + 0.775% 2/14/2029 15,005 17,035 Borrowing in euros N/A 2/14/2029 — 386,750 15,005 403,785 $ 1,121,908 $ 1,537,166 __________ (a) The applicable interest rate at June 30, 2024 was based on the credit ratings for our Senior Unsecured Notes of BBB+/Baa1. (b) Balance excludes unamortized discount of $6.2 million and $7.4 million at June 30, 2024 and December 31, 2023, respectively, and unamortized deferred financing costs of $0.3 million and $0.4 million at June 30, 2024 and December 31, 2023, respectively. (c) Interest rate is subject to variable-to-fixed interest rate swaps that fix the total per annum interest rate at 4.34% through December 31, 2024. Upon maturity of the interest rate swaps, the Unsecured Term Loan due 2026 will be subject to a variable interest rate of EURIBOR + 0.85%. (d) SONIA means Sterling Overnight Index Average. (e) EURIBOR means Euro Interbank Offered Rate. (f) TIBOR means Tokyo 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 $6.6 billion at June 30, 2024 (the “Senior Unsecured Notes”). On May 16, 2024, we completed an underwritten public offering of €650.0 million of 4.25% Senior Notes due 2032, at a price of 99.526% of par value. These 4.25% Senior Notes due 2032 have an 8.2-year On June 28, 2024, we completed an underwritten public offering of $400.0 million of 5.375% Senior Notes due 2034, at a price of 98.843% of par value. These 5.375% Senior Notes due 2034 have a 10.0-year Interest on the Senior Unsecured Notes is payable annually or semi-annually in arrears. 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 20 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2024 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date June 30, 2024 December 31, 2023 4.6% Senior Notes due 2024 (b) 3/14/2014 $ 500,000 4.6 % 4/1/2024 $ — $ 500,000 2.25% Senior Notes due 2024 (c) 1/19/2017 € 500,000 2.25 % 7/19/2024 535,250 552,500 4.0% Senior Notes due 2025 1/26/2015 $ 450,000 4.0 % 2/1/2025 450,000 450,000 2.25% Senior Notes due 2026 10/9/2018 € 500,000 2.25 % 4/9/2026 535,250 552,500 4.25% Senior Notes due 2026 9/12/2016 $ 350,000 4.25 % 10/1/2026 350,000 350,000 2.125% Senior Notes due 2027 3/6/2018 € 500,000 2.125 % 4/15/2027 535,250 552,500 1.35% Senior Notes due 2028 9/19/2019 € 500,000 1.35 % 4/15/2028 535,250 552,500 3.85% Senior Notes due 2029 6/14/2019 $ 325,000 3.85 % 7/15/2029 325,000 325,000 3.41% Senior Notes due 2029 9/28/2022 € 150,000 3.41 % 9/28/2029 160,575 165,750 0.95% Senior Notes due 2030 3/8/2021 € 525,000 0.95 % 6/1/2030 562,013 580,125 2.4% Senior Notes due 2031 10/14/2020 $ 500,000 2.4 % 2/1/2031 500,000 500,000 2.45% Senior Notes due 2032 10/15/2021 $ 350,000 2.45 % 2/1/2032 350,000 350,000 4.25% Senior Notes due 2032 5/16/2024 € 650,000 4.25 % 7/23/2032 695,825 — 3.7% Senior Notes due 2032 9/28/2022 € 200,000 3.7 % 9/28/2032 214,100 221,000 2.25% Senior Notes due 2033 2/25/2021 $ 425,000 2.25 % 4/1/2033 425,000 425,000 5.375% Senior Notes due 2034 6/28/2024 $ 400,000 5.375 % 6/30/2034 400,000 — $ 6,573,513 $ 6,076,875 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $28.0 million and $21.1 million, and unamortized discount totaling $25.6 million and $20.1 million, at June 30, 2024 and December 31, 2023, respectively. (b) In April 2024, we repaid our $500 million of 4.6% Senior Notes due 2024 at maturity. (c) In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity ( Note 15 ). Covenants The credit agreements for our Senior Unsecured Credit Facility, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. There have been no significant changes in our debt covenants from what was disclosed in the 2023 Annual Report. We were in compliance with all of these covenants at June 30, 2024. Non-Recourse Mortgages At June 30, 2024, the weighted-average interest rate for our total non-recourse mortgage notes payable was 4.5% (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.5% and 5.4%, respectively), with maturity dates ranging from August 2024 to February 2033. In June 2024, we assumed a non-recourse mortgage loan with an outstanding principal balance of $21.9 million in connection with the acquisition of a property ( Note 4 ). This mortgage loan has a fixed annual interest rate of 4.5% and a maturity date of February 6, 2028. Repayments During the six months ended June 30, 2024, we (i) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $84.9 million and (ii) prepaid non-recourse mortgage loans totaling $33.8 million. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.8%. Foreign Currency Exchange Rate Impact During the six months ended June 30, 2024, the U.S. dollar strengthened against the euro, resulting in a decrease of $150.5 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2023 to June 30, 2024. Scheduled Debt Principal Payments Scheduled debt principal payments as of June 30, 2024 are as follows (in thousands): Years Ending December 31, Total 2024 (remainder) (a) $ 602,952 2025 707,294 2026 1,510,520 2027 537,595 2028 1,156,892 Thereafter through 2034 3,651,313 Total principal payments 8,166,566 Unamortized discount, net (35,570) Unamortized deferred financing costs (28,548) Total $ 8,102,448 __________ (a) In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity ( Note 15 ). Certain amounts in the table above are based on the applicable foreign currency exchange rate at June 30, 2024. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At June 30, 2024, 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 | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity Stock-Based Compensation In June 2024, our stockholders approved the Amended and Restated 2017 Share Incentive Plan (the “Plan”), which authorizes the issuance of up to 4,000,000 additional shares of our common stock and makes certain other changes. The Plan is more fully described in the registration statement on Form S-8 filed on June 14, 2024. Our 2017 Share Incentive Plan and certain other stock-based compensation plans that we maintain are more fully described in the 2023 Annual Report. We recorded stock-based compensation expense of $8.9 million and $9.0 million during the three months ended June 30, 2024 and 2023, respectively, and $17.8 million and $16.8 million during the six months ended June 30, 2024 and 2023, respectively, which was included in Stock-based compensation expense in the consolidated financial statements. Restricted and Conditional Awards Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2024 and changes during the six months ended June 30, 2024 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Shares Weighted-Average Nonvested at January 1, 2024 447,358 $ 77.69 526,413 $ 105.92 Granted (a) 266,896 64.95 213,645 82.95 Vested (b) (158,231) 76.52 (309,670) 86.19 Forfeited (3,393) 73.29 (2,795) 101.04 Adjustment (c) — — 36,984 89.07 Nonvested at June 30, 2024 (d) 552,630 $ 71.45 464,577 $ 112.29 __________ (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 a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period. To estimate the fair value of PSUs granted during the six months ended June 30, 2024, we used a risk-free interest rate of 4.1%, an expected volatility rate of 20.5%, and assumed a dividend yield of zero. (b) The grant date fair value of shares vested during the six months ended June 30, 2024 was $38.8 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 June 30, 2024 and December 31, 2023, we had an obligation to issue 1,389,682 and 1,196,955 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $78.4 million and $62.0 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 June 30, 2024 to reflect the number of shares expected to be issued when the PSUs vest. (d) At June 30, 2024, total unrecognized compensation expense related to these awards was approximately $56.6 million, with an aggregate weighted-average remaining term of 2.0 years. Earnings Per Share The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income — basic and diluted $ 142,895 $ 144,620 $ 302,118 $ 439,000 Weighted-average shares outstanding — basic 220,195,910 215,075,114 220,113,753 213,522,150 Effect of dilutive securities 18,208 109,371 147,772 353,321 Weighted-average shares outstanding — diluted 220,214,118 215,184,485 220,261,525 213,875,471 For the three and six months ended June 30, 2024 and 2023, potentially dilutive securities excluded from the computation of diluted earnings per share were insignificant. Acquisition of Noncontrolling Interest On May 30, 2023, we acquired the remaining 3% interest in an international jointly owned investment (which we already consolidated) from the noncontrolling interest holders for nominal consideration, bringing our ownership interest to 100%. No gain or loss was recognized on the transaction. We recorded an adjustment of approximately $1.2 million to Additional paid-in capital in our consolidated statements of equity for the three and six months ended June 30, 2023 related to the difference between the consideration transferred and the carrying value of the noncontrolling interest related to this investment. ATM Program and Forward Equity On May 2, 2022, we established a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $1.0 billion may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) through or to participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (our “ATM Forwards”). During 2023, we settled the ATM Forwards in full prior to the maturity date of each ATM Forward via physical delivery of the outstanding shares of common stock in exchange for cash proceeds. The forward sale price that we received upon physical settlement of the ATM Forwards was (i) subject to adjustment on a daily basis based on a floating interest rate factor equal to a specified daily rate less a spread (i.e., if the specified daily rate is less than the spread on any day, the interest rate factor will result in a daily reduction of the applicable forward sale price) and (ii) decreased based on amounts related to expected dividends on shares of our common stock during the term of the ATM Forwards. We determined that our ATM Forwards met the criteria for equity classification and were therefore exempt from derivative accounting. We recorded the ATM Forwards at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification. The following table sets forth certain information regarding the settlement of our forward equity during the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Shares of common stock delivered — — — 3,081,867 Net proceeds $ — $ — $ — $ 249,806 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 June 30, 2024 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 16,082 $ (268,598) $ (252,516) Other comprehensive income before reclassifications 3,459 (24) 3,435 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (2,877) — (2,877) Interest expense (701) — (701) Total (3,578) — (3,578) Net current period other comprehensive loss (119) (24) (143) Net current period other comprehensive loss attributable to noncontrolling interests — 19 19 Ending balance $ 15,963 $ (268,603) $ (252,640) Three Months Ended June 30, 2023 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 28,816 $ (313,374) $ (284,558) Other comprehensive income before reclassifications (1,270) 9,479 8,209 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (3,564) — (3,564) Interest expense (103) — (103) Total (3,667) — (3,667) Net current period other comprehensive income (4,937) 9,479 4,542 Net current period other comprehensive loss attributable to noncontrolling interests — 85 85 Ending balance $ 23,879 $ (303,810) $ (279,931) Six Months Ended June 30, 2024 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 9,650 $ (264,517) $ (254,867) Other comprehensive income before reclassifications 12,908 (4,362) 8,546 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (5,066) — (5,066) Interest expense (1,529) — (1,529) Total (6,595) — (6,595) Net current period other comprehensive income 6,313 (4,362) 1,951 Net current period other comprehensive loss attributable to noncontrolling interests — 276 276 Ending balance $ 15,963 $ (268,603) $ (252,640) Six Months Ended June 30, 2023 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 36,079 $ (319,859) $ (283,780) Other comprehensive income before reclassifications (3,858) 15,936 12,078 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (7,869) — (7,869) Interest expense (473) — (473) Total (8,342) — (8,342) Net current period other comprehensive income (12,200) 15,936 3,736 Net current period other comprehensive loss attributable to noncontrolling interests — 113 113 Ending balance $ 23,879 $ (303,810) $ (279,931) See Note 9 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented. Dividends Declared During the second quarter of 2024, our board of directors declared a quarterly dividend of $0.870 per share, which was paid on July 15, 2024 to stockholders of record as of June 28, 2024. During the six months ended June 30, 2024, we declared dividends totaling $1.735 per share. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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. Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and six months ended June 30, 2024 and 2023. Certain of our subsidiaries have elected taxable REIT subsidiary (“TRS”) status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. The accompanying consolidated financial statements include an interim tax provision for our TRSs and foreign subsidiaries, as necessary, for the three and six months ended June 30, 2024 and 2023. Current income tax expense was $7.6 million and $12.9 million for the three months ended June 30, 2024 and 2023, respectively, and $17.7 million and $23.6 million for the six months ended June 30, 2024 and 2023, respectively. Deferred income tax benefit (expense) was $1.4 million and $2.7 million for the three months ended June 30, 2024 and 2023, respectively, and $2.8 million and $(1.6) million for the six months ended June 30, 2024 and 2023, respectively. |
Property Dispositions
Property Dispositions | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions | Property Dispositions We implemented the Office Sale Program in September 2023, which is substantially completed ( Note 1 ). All property dispositions are also discussed in Note 4 and Note 5 . 2024 — During the three and six months ended June 30, 2024, we sold 12 and 165 properties, respectively, for total proceeds, net of selling costs, of $133.7 million and $1.0 billion, respectively, and recognized a net gain on these sales totaling $39.4 million and $54.8 million, respectively (inclusive of income taxes totaling less than $0.1 million and $3.1 million, respectively, recognized upon sale). One of the properties sold during the second quarter of 2024 was a hotel operating property. This disposition activity for the three and six months ended June 30, 2024 includes the sale of three and 75 properties, respectively, under the Office Sale Program for total proceeds, net of selling costs, of $61.9 million and $451.9 million, respectively, resulting in a net (loss) gain on these sales totaling $(1.7) million and $0.4 million, respectively. 2023 — During the three and six months ended June 30, 2023, we sold three and eight properties, respectively, for total proceeds, net of selling costs, of $3.1 million and $44.1 million, respectively, and recognized a net gain on these sales totaling $1.8 million and $3.4 million, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Senior Unsecured Notes Repayment In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity ( Note 10 ). Acquisitions In July 2024, we completed two acquisitions totaling approximately $67.3 million. They are as follows: • $38.0 million for four properties (three industrial, one retail) in the United States, which is part of the portfolio acquisition we completed during the second quarter of 2024 ( Note 4 ); and • $29.3 million for a portfolio of 114 grocery stores in Poland. Dispositions In July 2024, we sold four properties for gross proceeds totaling approximately $74.9 million. Two of these properties were sold pursuant to the Office Sale Program for gross proceeds totaling $50.9 million ( Note 1 ), one of which was classified as held for sale as of June 30, 2024 ( Note 4 ). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Basis of Consolidation | Basis of Consolidation |
Variable Interest Entity | When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2023 Annual Report. During the six months ended June 30, 2024, we declassified ten entities as VIEs, primarily related to the completion of certain tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code (“1031 Exchange”) and dispositions. At June 30, 2024 and December 31, 2023, we considered 12 and 21 entities, respectively, to be VIEs, of which we consolidated seven and 15, respectively, 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): June 30, 2024 December 31, 2023 Land, buildings and improvements — net lease and other $ 126,223 $ 237,858 Land, buildings and improvements — operating properties — 39,422 Net investments in finance leases and loans receivable 159,103 595,524 In-place lease intangible assets and other 11,402 40,650 Above-market rent intangible assets 3,894 6,828 Accumulated depreciation and amortization (17,302) (23,580) Total assets 303,241 947,509 Non-recourse mortgages, net $ 50,793 $ 59,715 Below-market rent intangible liabilities, net 28 32 Total liabilities 67,580 101,047 At June 30, 2024 and December 31, 2023, our five and six unconsolidated VIEs, respectively, included our interests in (i) three unconsolidated real estate investments, which we account for under the equity method of accounting (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), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. In addition, at December 31, 2023, we had a variable interest in NLOP, which we also deemed a VIE, due to our guarantee of a non-recourse mortgage loan with approximately $19.0 million principal balance outstanding as of December 31, 2023 encumbering a property that was derecognized in the Spin-Off ( Note 1 ). This non-recourse mortgage loan was repaid by NLOP during the first quarter of 2024 and as a result, NLOP is not deemed a VIE as of June 30, 2024. As of June 30, 2024, and December 31, 2023, the net carrying amount of our investments in these entities was $732.6 million and $729.8 million, respectively, and our maximum exposure to loss in these entities was limited to our investments. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Reimbursable costs from affiliates (revenues) are now included within Other advisory income and reimbursements. Reimbursable affiliate costs (expenses) are now included within General and administrative expenses. Previously, such amounts were presented in their own financial statement line items on the consolidated statements of income. |
Revenue Recognition | Revenue Recognition |
Intangible Assets and Liabilities and Goodwill | 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 intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent intangibles are included in Below-market rent 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, 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 December 31, 2023 Land, buildings and improvements — net lease and other $ 126,223 $ 237,858 Land, buildings and improvements — operating properties — 39,422 Net investments in finance leases and loans receivable 159,103 595,524 In-place lease intangible assets and other 11,402 40,650 Above-market rent intangible assets 3,894 6,828 Accumulated depreciation and amortization (17,302) (23,580) Total assets 303,241 947,509 Non-recourse mortgages, net $ 50,793 $ 59,715 Below-market rent intangible liabilities, net 28 32 Total liabilities 67,580 101,047 |
Schedule of 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): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 1,085,967 $ 633,860 Restricted cash (a) 143,703 58,111 Total cash and cash equivalents and restricted cash $ 1,229,670 $ 691,971 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. The amount as of June 30, 2024 includes $106.9 million of proceeds from certain dispositions, which are held by an intermediary and have been designated for future 1031 Exchange transactions. |
Schedule of 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): June 30, 2024 December 31, 2023 Cash and cash equivalents $ 1,085,967 $ 633,860 Restricted cash (a) 143,703 58,111 Total cash and cash equivalents and restricted cash $ 1,229,670 $ 691,971 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. The amount as of June 30, 2024 includes $106.9 million of proceeds from certain dispositions, which are held by an intermediary and have been designated for future 1031 Exchange transactions. |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Asset management revenue (a) (b) $ 1,686 $ 303 $ 3,579 $ 642 Administrative reimbursements (a) (c) 1,000 — 2,000 — Reimbursable costs from affiliates (a) (c) 57 124 120 225 $ 2,743 $ 427 $ 5,699 $ 867 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 NLOP $ 2,599 $ — $ 5,403 $ — CESH 144 427 296 867 $ 2,743 $ 427 $ 5,699 $ 867 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Asset management revenue in the consolidated statements of income. (c) Included within Other advisory income and reimbursements in the consolidated statements of income. |
Schedule of Balances Due to and From Related Party | The following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands): June 30, 2024 December 31, 2023 Asset management fees receivable $ 542 $ 1,349 Accounts receivable 514 768 Reimbursable costs 52 59 $ 1,108 $ 2,176 |
Land, Buildings and Improveme_2
Land, Buildings and Improvements, and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate [Abstract] | |
Schedule of Real Estate | Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): June 30, 2024 December 31, 2023 Land $ 2,299,528 $ 2,248,300 Buildings and improvements 10,004,871 9,801,596 Real estate under construction 37,580 45,562 Less: Accumulated depreciation (1,589,966) (1,509,730) $ 10,752,013 $ 10,585,728 The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 82,449 Buildings and improvements 311,003 Intangible assets and liabilities: In-place lease (weighted-average expected life of 14.9 years) 56,855 Below-market rent (expected life of 12.8 years) (408) Debt discount and deferred financing costs on non-recourse mortgage loan assumed 1,459 $ 451,358 June 30, 2024 December 31, 2023 Land $ 147,170 $ 150,084 Buildings and improvements 1,091,170 1,104,635 Real estate under construction — 1,530 Less: Accumulated depreciation (88,885) (80,057) $ 1,149,455 $ 1,176,192 |
Schedule of Real Estate Acquired | During the six months ended June 30, 2024, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Capitalized Costs Doncaster, United Kingdom (a) 2 1/9/2024 Retail $ 30,055 Various, Italy (a) 5 1/30/2024 Industrial, Warehouse 148,130 Laval, Canada (a) 1 3/26/2024 Industrial 2,604 Commercial Point, Ohio 1 4/5/2024 Warehouse 94,220 Tucson, Arizona 1 5/13/2024 Warehouse 38,784 Portfolio Acquisition: Various, United States 5 5/15/2024 Industrial, Warehouse 44,400 Various, United States 4 5/15/2024 Industrial 23,330 Sylacauga, Alabama 1 5/15/2024 Industrial 5,852 Moxee, Washington and La Porte, Indiana (b) 2 6/26/2024 Industrial 37,019 Portfolio Total 12 110,601 Mesa and Laveen, Arizona 2 6/3/2024 Retail 26,964 24 $ 451,358 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) In connection with this acquisition, we assumed a non-recourse mortgage loan encumbering the properties with an outstanding principal balance of $21.9 million ( Note 10 ). |
Schedule of Real Estate under Construction | During the six months ended June 30, 2024, we completed the following construction projects (dollars in thousands): Property Location(s) Primary Transaction Type Number of Properties Date of Completion Property Type Total Capitalized Costs Salisbury, North Carolina Expansion 1 3/8/2024 Industrial $ 14,737 Little Rock, Arkansas Expansion 1 4/10/2024 Self-Storage (Operating) 3,280 Irvine, California Redevelopment 1 6/27/2024 Industrial 15,222 3 $ 33,239 |
Schedule of 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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Lease income — fixed $ 287,709 $ 324,468 $ 573,883 $ 632,534 Lease income — variable (a) 36,395 44,656 72,472 88,926 Total operating lease income $ 324,104 $ 369,124 $ 646,355 $ 721,460 __________ (a) Includes (i) rent increases based on changes in the U.S. Consumer Price Index and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. |
Schedule of Disclosure of Long Lived Assets Held-for-Sale | Below is a summary of our properties held for sale (in thousands): June 30, 2024 December 31, 2023 Land, buildings and improvements — net lease and other $ 10,676 $ 46,986 In-place lease intangible assets and other 778 5,222 Above-market rent intangible assets — 8,374 Accumulated depreciation and amortization (3,711) (23,460) Assets held for sale, net $ 7,743 $ 37,122 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Net Investments in Finance Leases and Loans Receivable | Finance Receivables Net investments in finance leases and loans receivable are summarized as follows (in thousands): Maturity Date June 30, 2024 December 31, 2023 Net investments in direct financing leases (a) 2024 – 2036 $ 320,714 $ 431,328 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 311,068 236,611 Net investments in sales-type leases (c) 2024 20,885 835,734 Secured loans receivable (d) 2024 15,000 11,250 $ 667,667 $ 1,514,923 __________ (a) Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases . (b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Maturity dates reflect the current lease maturity dates. Amounts are net of allowance for credit losses of $6.2 million and $0.8 million as of June 30, 2024 and December 31, 2023, respectively. (c) These investments are assessed for credit loss allowances but no such allowances were recorded as of June 30, 2024 or December 31, 2023. (d) Amounts are net of allowance for credit losses of $2.1 million as of December 31, 2023. No such allowance was recorded as of June 30, 2024. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Lease payments receivable $ 197,995 $ 285,512 Unguaranteed residual value 302,667 434,234 500,662 719,746 Less: unearned income (168,306) (251,441) Less: allowance for credit losses (a) (11,642) (36,977) $ 320,714 $ 431,328 __________ (a) During the six months ended June 30, 2024 and 2023, we recorded a net release of allowance for credit losses of $8.4 million and $3.6 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2024, we reduced the allowance for credit losses balance by $17.0 million, in connection with the reclassification of certain properties from Net investments in finance leases and loans receivable to Land, buildings and improvements — net lease and other, as described below. |
Schedule of Income from Finance Leases and Loans Receivable | Income from finance leases and loans receivable is summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net investments in direct financing leases $ 8,763 $ 12,751 $ 17,692 $ 25,449 Sale-leaseback transactions accounted for as loans receivable 5,620 3,684 9,521 7,343 Net investments in sales-type leases 578 9,688 11,576 12,917 Secured loans receivable — 1,188 1,965 2,357 $ 14,961 $ 27,311 $ 40,754 $ 48,066 |
Schedule of Net Investments in Sales-Type Leases | Net investments in sales-type leases is summarized as follows (in thousands): June 30, 2024 December 31, 2023 Lease payments receivable (a) $ 21,460 $ 849,881 21,460 849,881 Less: unearned income (575) (14,147) $ 20,885 $ 835,734 __________ (a) Includes estimated purchase price and total rents owed. |
Schedule of Loans Receivable | During the six months ended June 30, 2024, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Investment Various, Italy (a) 4 3/26/2024 Industrial, Warehouse $ 83,890 4 $ 83,890 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. |
Schedule of Finance Receivables Credit Quality Indicators | A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 1 – 3 17 18 $ 592,885 $ 1,338,877 4 7 8 92,614 215,953 5 — — — — $ 685,499 $ 1,554,830 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): June 30, 2024 December 31, 2023 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 $ 2,334 $ (726) $ 1,608 $ 20,745 $ (19,569) $ 1,176 2,334 (726) 1,608 20,745 (19,569) 1,176 Lease Intangibles: In-place lease 2,120,227 (945,307) 1,174,920 2,168,739 (934,138) 1,234,601 Above-market rent 676,666 (472,358) 204,308 706,773 (481,554) 225,219 2,796,893 (1,417,665) 1,379,228 2,875,512 (1,415,692) 1,459,820 Goodwill Goodwill 973,204 — 973,204 978,289 — 978,289 Total intangible assets $ 3,772,431 $ (1,418,391) $ 2,354,040 $ 3,874,546 $ (1,435,261) $ 2,439,285 Finite-Lived Intangible Liabilities Below-market rent $ (202,445) $ 73,735 $ (128,710) $ (203,413) $ 66,541 $ (136,872) Total intangible liabilities $ (202,445) $ 73,735 $ (128,710) $ (203,413) $ 66,541 $ (136,872) |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table sets forth our ownership interests in our equity method investments and their respective carrying values (dollars in thousands): Carrying Value at Lessee/Fund/Description Ownership Interest June 30, 2024 December 31, 2023 Las Vegas Retail Complex (a) N/A $ 239,848 $ 235,979 Johnson Self Storage 90.00% 63,130 63,934 Kesko Senukai (b) 70.00% 27,723 28,860 Harmon Retail Corner (c) 15.00% 24,343 24,229 CESH (d) 2.43% 1,176 1,259 $ 356,220 $ 354,261 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2024) for a retail complex in Las Vegas, Nevada. Through June 30, 2024, we funded $236.3 million, including $4.9 million during the six months ended June 30, 2024. Equity income from this investment was $8.3 million and $5.9 million for the six months ended June 30, 2024 and 2023, respectively, which was recognized within Earnings from equity method investments in our consolidated statements of income. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment is reported using the hypothetical liquidation at book value model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) 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 June 30, 2024 is based on the estimated fair value of our investment as of March 31, 2024. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 December 31, 2023 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 and 3 $ 6,519,887 $ 6,055,979 $ 6,035,686 $ 5,598,423 Non-recourse mortgages, net (a) (b) (d) 3 467,200 466,516 579,147 572,553 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $28.0 million and $21.0 million at June 30, 2024 and December 31, 2023, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $0.2 million and less than $0.1 million at June 30, 2024 and December 31, 2023, respectively. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $25.6 million and $20.1 million at June 30, 2024 and December 31, 2023, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $3.8 million and $4.3 million at June 30, 2024 and December 31, 2023, respectively. (c) For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ( Note 10 )), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category. (d) We determined the estimated fair value of our non-recourse mortgage loans 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 consider 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. |
Schedule of Fair Value Impairment Charges Using Unobservable Inputs Nonrecurring Basis | The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2024 2023 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Real estate $ 75,944 $ 15,752 $ — $ — $ 15,752 $ — Six Months Ended June 30, 2024 2023 Fair Value Impairment Fair Value Impairment Impairment Charges Real estate $ 75,944 $ 15,752 $ — $ — $ 15,752 $ — |
Risk Management and Use of De_2
Risk Management and Use of Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 December 31, 2023 June 30, 2024 December 31, 2023 Foreign currency collars Other assets, net $ 16,351 $ 14,103 $ — $ — Interest rate swaps Other assets, net 603 995 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (617) (4,029) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (168) (1,678) 16,954 15,098 (785) (5,707) Derivatives Not Designated as Hedging Instruments Foreign currency collars Other assets, net 301 — — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (217) 301 — — (217) Total derivatives $ 17,255 $ 15,098 $ (785) $ (5,924) |
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 (Loss) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2024 2023 2024 2023 Interest rate swaps $ (447) $ 1,827 $ 1,183 $ 1,197 Foreign currency collars 332 (6,412) 5,660 (12,638) Interest rate cap — 1 — (6) Total $ (115) $ (4,584) $ 6,843 $ (11,447) Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Foreign currency collars Non-operating income $ 2,877 $ 3,564 $ 5,066 $ 7,869 Interest rate swaps and cap Interest expense 701 103 1,529 473 Total $ 3,578 $ 3,667 $ 6,595 $ 8,342 __________ (a) Excludes net losses of less than $0.1 million and $0.4 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2024 and 2023, respectively, and net losses of $0.5 million and $0.8 million for the six months ended June 30, 2024 and 2023, respectively. |
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 in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest rate swaps Interest expense $ (727) $ (131) $ (1,587) $ (537) Foreign currency collars Non-operating income 448 183 1,376 (16) Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 25 98 517 (41) Total $ (254) $ 150 $ 306 $ (594) |
Schedule of Derivative Instruments | The interest rate swaps that our consolidated subsidiaries had outstanding at June 30, 2024 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 3 21,268 USD $ 557 Interest rate swaps 5 544,327 EUR (122) $ 435 __________ (a) Fair value amounts are based on the exchange rate of the euro at June 30, 2024, as applicable. The following table presents the foreign currency collars that we had outstanding at June 30, 2024 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at June 30, 2024 Designated as Cash Flow Hedging Instruments Foreign currency collars 51 256,000 EUR $ 14,322 Foreign currency collars 30 19,080 GBP 1,412 Not Designated as Cash Flow Hedging Instruments Foreign currency collars 2 10,000 EUR 301 $ 16,035 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Unsecured Credit Facility | The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Senior Unsecured Credit Facility Interest Rate at June 30, 2024 (a) Maturity Date at June 30, 2024 Principal Outstanding Balance at June 30, 2024 December 31, 2023 Unsecured Term Loans: (b) Unsecured Term Loan due 2026 — borrowing in euros (c) 4.34% 4/24/2026 $ 535,250 $ 552,500 GBP Term Loan due 2028 — borrowing in British pounds sterling (d) SONIA + 0.85% 2/14/2028 341,495 343,306 EUR Term Loan due 2028 — borrowing in euros (e) EURIBOR + 0.85% 2/14/2028 230,158 237,575 1,106,903 1,133,381 Unsecured Revolving Credit Facility: Borrowing in Japanese yen (f) TIBOR + 0.775% 2/14/2029 15,005 17,035 Borrowing in euros N/A 2/14/2029 — 386,750 15,005 403,785 $ 1,121,908 $ 1,537,166 __________ (a) The applicable interest rate at June 30, 2024 was based on the credit ratings for our Senior Unsecured Notes of BBB+/Baa1. (b) Balance excludes unamortized discount of $6.2 million and $7.4 million at June 30, 2024 and December 31, 2023, respectively, and unamortized deferred financing costs of $0.3 million and $0.4 million at June 30, 2024 and December 31, 2023, respectively. (c) Interest rate is subject to variable-to-fixed interest rate swaps that fix the total per annum interest rate at 4.34% through December 31, 2024. Upon maturity of the interest rate swaps, the Unsecured Term Loan due 2026 will be subject to a variable interest rate of EURIBOR + 0.85%. (d) SONIA means Sterling Overnight Index Average. (e) EURIBOR means Euro Interbank Offered Rate. (f) TIBOR means Tokyo Interbank Offered Rate. |
Schedule of Senior Unsecured Notes | The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2024 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date June 30, 2024 December 31, 2023 4.6% Senior Notes due 2024 (b) 3/14/2014 $ 500,000 4.6 % 4/1/2024 $ — $ 500,000 2.25% Senior Notes due 2024 (c) 1/19/2017 € 500,000 2.25 % 7/19/2024 535,250 552,500 4.0% Senior Notes due 2025 1/26/2015 $ 450,000 4.0 % 2/1/2025 450,000 450,000 2.25% Senior Notes due 2026 10/9/2018 € 500,000 2.25 % 4/9/2026 535,250 552,500 4.25% Senior Notes due 2026 9/12/2016 $ 350,000 4.25 % 10/1/2026 350,000 350,000 2.125% Senior Notes due 2027 3/6/2018 € 500,000 2.125 % 4/15/2027 535,250 552,500 1.35% Senior Notes due 2028 9/19/2019 € 500,000 1.35 % 4/15/2028 535,250 552,500 3.85% Senior Notes due 2029 6/14/2019 $ 325,000 3.85 % 7/15/2029 325,000 325,000 3.41% Senior Notes due 2029 9/28/2022 € 150,000 3.41 % 9/28/2029 160,575 165,750 0.95% Senior Notes due 2030 3/8/2021 € 525,000 0.95 % 6/1/2030 562,013 580,125 2.4% Senior Notes due 2031 10/14/2020 $ 500,000 2.4 % 2/1/2031 500,000 500,000 2.45% Senior Notes due 2032 10/15/2021 $ 350,000 2.45 % 2/1/2032 350,000 350,000 4.25% Senior Notes due 2032 5/16/2024 € 650,000 4.25 % 7/23/2032 695,825 — 3.7% Senior Notes due 2032 9/28/2022 € 200,000 3.7 % 9/28/2032 214,100 221,000 2.25% Senior Notes due 2033 2/25/2021 $ 425,000 2.25 % 4/1/2033 425,000 425,000 5.375% Senior Notes due 2034 6/28/2024 $ 400,000 5.375 % 6/30/2034 400,000 — $ 6,573,513 $ 6,076,875 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $28.0 million and $21.1 million, and unamortized discount totaling $25.6 million and $20.1 million, at June 30, 2024 and December 31, 2023, respectively. (b) In April 2024, we repaid our $500 million of 4.6% Senior Notes due 2024 at maturity. (c) In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity ( Note 15 ). |
Scheduled Debt Principal Payments | Scheduled debt principal payments as of June 30, 2024 are as follows (in thousands): Years Ending December 31, Total 2024 (remainder) (a) $ 602,952 2025 707,294 2026 1,510,520 2027 537,595 2028 1,156,892 Thereafter through 2034 3,651,313 Total principal payments 8,166,566 Unamortized discount, net (35,570) Unamortized deferred financing costs (28,548) Total $ 8,102,448 __________ (a) In July 2024, we repaid our €500 million of 2.25% Senior Notes due 2024 at maturity ( Note 15 ). |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Restricted and Conditional Award Activity | Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2024 and changes during the six months ended June 30, 2024 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Shares Weighted-Average Nonvested at January 1, 2024 447,358 $ 77.69 526,413 $ 105.92 Granted (a) 266,896 64.95 213,645 82.95 Vested (b) (158,231) 76.52 (309,670) 86.19 Forfeited (3,393) 73.29 (2,795) 101.04 Adjustment (c) — — 36,984 89.07 Nonvested at June 30, 2024 (d) 552,630 $ 71.45 464,577 $ 112.29 __________ (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 a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period. To estimate the fair value of PSUs granted during the six months ended June 30, 2024, we used a risk-free interest rate of 4.1%, an expected volatility rate of 20.5%, and assumed a dividend yield of zero. (b) The grant date fair value of shares vested during the six months ended June 30, 2024 was $38.8 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 June 30, 2024 and December 31, 2023, we had an obligation to issue 1,389,682 and 1,196,955 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $78.4 million and $62.0 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 June 30, 2024 to reflect the number of shares expected to be issued when the PSUs vest. (d) At June 30, 2024, total unrecognized compensation expense related to these awards was approximately $56.6 million, with an aggregate weighted-average remaining term of 2.0 years. |
Schedule of Earnings Per Share Reconciliation | The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income — basic and diluted $ 142,895 $ 144,620 $ 302,118 $ 439,000 Weighted-average shares outstanding — basic 220,195,910 215,075,114 220,113,753 213,522,150 Effect of dilutive securities 18,208 109,371 147,772 353,321 Weighted-average shares outstanding — diluted 220,214,118 215,184,485 220,261,525 213,875,471 |
Schedule of Stockholders Equity | The following table sets forth certain information regarding the settlement of our forward equity during the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Shares of common stock delivered — — — 3,081,867 Net proceeds $ — $ — $ — $ 249,806 |
Schedule of Reclassification 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 June 30, 2024 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 16,082 $ (268,598) $ (252,516) Other comprehensive income before reclassifications 3,459 (24) 3,435 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (2,877) — (2,877) Interest expense (701) — (701) Total (3,578) — (3,578) Net current period other comprehensive loss (119) (24) (143) Net current period other comprehensive loss attributable to noncontrolling interests — 19 19 Ending balance $ 15,963 $ (268,603) $ (252,640) Three Months Ended June 30, 2023 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 28,816 $ (313,374) $ (284,558) Other comprehensive income before reclassifications (1,270) 9,479 8,209 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (3,564) — (3,564) Interest expense (103) — (103) Total (3,667) — (3,667) Net current period other comprehensive income (4,937) 9,479 4,542 Net current period other comprehensive loss attributable to noncontrolling interests — 85 85 Ending balance $ 23,879 $ (303,810) $ (279,931) Six Months Ended June 30, 2024 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 9,650 $ (264,517) $ (254,867) Other comprehensive income before reclassifications 12,908 (4,362) 8,546 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (5,066) — (5,066) Interest expense (1,529) — (1,529) Total (6,595) — (6,595) Net current period other comprehensive income 6,313 (4,362) 1,951 Net current period other comprehensive loss attributable to noncontrolling interests — 276 276 Ending balance $ 15,963 $ (268,603) $ (252,640) Six Months Ended June 30, 2023 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Beginning balance $ 36,079 $ (319,859) $ (283,780) Other comprehensive income before reclassifications (3,858) 15,936 12,078 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (7,869) — (7,869) Interest expense (473) — (473) Total (8,342) — (8,342) Net current period other comprehensive income (12,200) 15,936 3,736 Net current period other comprehensive loss attributable to noncontrolling interests — 113 113 Ending balance $ 23,879 $ (303,810) $ (279,931) |
Business and Organization (Deta
Business and Organization (Details) ft² in Millions | 6 Months Ended | ||
Jun. 30, 2024 ft² property tenant segment | Nov. 01, 2023 property | Sep. 30, 2023 property | |
Additional disclosures | |||
Number of reportable segments | segment | 1 | ||
Number of business segments | segment | 1 | ||
Owned Real Estate | |||
Additional disclosures | |||
Number of real estate properties (property) | 1,291 | ||
Square footage of real estate properties | ft² | 170 | ||
Number of tenants (tenant) | tenant | 346 | ||
Lease term (in years) | 12 years | ||
Occupancy rate (as a percent) | 98.80% | ||
Owned Real Estate | Operating Properties | |||
Additional disclosures | |||
Number of real estate properties (property) | 95 | ||
Square footage of real estate properties | ft² | 7.3 | ||
Owned Real Estate | Self- Storage | |||
Additional disclosures | |||
Number of real estate properties (property) | 89 | ||
Owned Real Estate | Hotel | |||
Additional disclosures | |||
Number of real estate properties (property) | 4 | ||
Owned Real Estate | Student Housing Properties | |||
Additional disclosures | |||
Number of real estate properties (property) | 2 | ||
Office Property | Spinoff | NLOP | |||
Additional disclosures | |||
Number of real estate properties (property) | 59 | 59 | |
Office Property | Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | |||
Additional disclosures | |||
Number of real estate properties (property) | 85 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 USD ($) property vie entity | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property vie entity | Jun. 30, 2023 USD ($) property | Dec. 31, 2023 USD ($) vie property | Mar. 31, 2023 property | |
Basis of Consolidation | ||||||
Variable interest entities declassified, count | entity | (10) | (10) | ||||
Variable interest entities, count | vie | 12 | 12 | 21 | |||
Variable interest entities consolidated, count | vie | 7 | 7 | 15 | |||
Variable interest entities unconsolidated, count | vie | 5 | 5 | 6 | |||
Equity method investments in real estate | $ | $ 356,220 | $ 356,220 | $ 354,261 | |||
Proceeds from the disposition | $ | $ 106,900 | |||||
Properties Disposed of by Sale | ||||||
Basis of Consolidation | ||||||
Number of real estate properties (property) | 1 | 1 | ||||
Number of properties sold | 12 | 3 | 165 | 8 | ||
Properties Disposed of by Sale | Land, Buildings and Improvements [Member] | ||||||
Basis of Consolidation | ||||||
Number of properties sold | 1 | 14 | ||||
Owned Real Estate | ||||||
Basis of Consolidation | ||||||
Operating property revenues | $ | $ 38,715 | $ 50,676 | $ 75,358 | $ 91,562 | ||
Number of real estate properties (property) | 1,291 | 1,291 | ||||
Owned Real Estate | Hotel | ||||||
Basis of Consolidation | ||||||
Operating property revenues | $ | $ 12,400 | $ 24,700 | $ 22,500 | $ 40,200 | ||
Number of real estate properties (property) | 4 | 4 | ||||
Number of properties sold | 1 | 8 | ||||
Owned Real Estate | Hotel | United States | ||||||
Basis of Consolidation | ||||||
Number of real estate properties (property) | 13 | 13 | ||||
Owned Real Estate | Hotel | Adjustments | United States | ||||||
Basis of Consolidation | ||||||
Number of real estate properties (property) | 12 | |||||
Variable Interest Entity | ||||||
Basis of Consolidation | ||||||
Principle amount of debt derecognized | $ | $ 19,000 | |||||
Equity method investments in real estate | $ | $ 732,600 | $ 732,600 | $ 729,800 | |||
Managed Programs | ||||||
Basis of Consolidation | ||||||
Variable interest entities unconsolidated, count | vie | 2 | 2 | ||||
Owned Real Estate | ||||||
Basis of Consolidation | ||||||
Variable interest entities unconsolidated, count | vie | 3 | 3 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Assets | |||
Land, buildings and improvements — net lease and other | $ 12,341,979 | $ 12,095,458 | |
Land, buildings and improvements — operating properties | 1,238,340 | 1,256,249 | |
Net investments in finance leases and loans receivable | 667,667 | 1,514,923 | |
In-place lease intangible assets and other | 2,256,793 | 2,308,853 | |
Above-market rent intangible assets | 676,666 | 706,773 | |
Accumulated depreciation and amortization | (3,096,516) | (3,005,479) | |
Total assets | [1] | 17,769,285 | 17,976,783 |
Liabilities | |||
Non-recourse mortgages, net | 467,200 | 579,147 | |
Below-market rent intangible liabilities, net | 128,710 | 136,872 | |
Total liabilities | [1] | 9,129,786 | 9,269,786 |
Variable Interest Entity | |||
Assets | |||
Land, buildings and improvements — net lease and other | 126,223 | 237,858 | |
Land, buildings and improvements — operating properties | 0 | 39,422 | |
Net investments in finance leases and loans receivable | 159,103 | 595,524 | |
In-place lease intangible assets and other | 11,402 | 40,650 | |
Above-market rent intangible assets | 3,894 | 6,828 | |
Accumulated depreciation and amortization | (17,302) | (23,580) | |
Total assets | 303,241 | 947,509 | |
Liabilities | |||
Non-recourse mortgages, net | 50,793 | 59,715 | |
Below-market rent intangible liabilities, net | 28 | 32 | |
Total liabilities | $ 67,580 | $ 101,047 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
Basis of Presentation - Cash an
Basis of Presentation - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,085,967 | $ 633,860 | ||
Restricted cash | 143,703 | 58,111 | ||
Total cash and cash equivalents and restricted cash | $ 1,229,670 | $ 691,971 | $ 286,287 | $ 224,141 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investment Management | ||||
Related Party Transaction | ||||
Operating property revenues | $ 2,743 | $ 427 | $ 5,699 | $ 867 |
Asset management revenue | ||||
Related Party Transaction | ||||
Operating property revenues | 1,686 | 303 | 3,579 | 642 |
Administrative reimbursements | ||||
Related Party Transaction | ||||
Operating property revenues | 1,000 | 0 | 2,000 | 0 |
Reimbursable costs from affiliates | ||||
Related Party Transaction | ||||
Operating property revenues | $ 57 | $ 124 | $ 120 | $ 225 |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Related Party Income, by Program (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transaction | ||||
Operating property revenues | $ 2,743 | $ 427 | $ 5,699 | $ 867 |
NLOP | ||||
Related Party Transaction | ||||
Operating property revenues | 2,599 | 0 | 5,403 | 0 |
CESH | ||||
Related Party Transaction | ||||
Operating property revenues | $ 144 | $ 427 | $ 296 | $ 867 |
Agreements and Transactions w_5
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Related Party Transaction | ||
Due from affiliates | $ 1,261,222 | $ 1,096,474 |
Affiliated Entity | ||
Related Party Transaction | ||
Asset management fees receivable | 542 | 1,349 |
Accounts receivable | 514 | 768 |
Reimbursable costs | 52 | 59 |
Due from affiliates | $ 1,108 | $ 2,176 |
Agreements and Transactions w_6
Agreements and Transactions with Related Parties - Narratives (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 USD ($) investment | Nov. 01, 2023 USD ($) | |
Related Party Transaction | ||
Jointly owned investments | 8 | |
Jointly owned investment, accounted for under the equity method investments | 4 | |
Other Entity | ||
Related Party Transaction | ||
Jointly owned investment, accounted for under the equity method investments | 4 | |
CESH | Gross Assets Fair Value | Affiliated Entity | ||
Related Party Transaction | ||
Percentage of asset management fees earned (as a percent) | 1% | |
NLOP | Affiliated Entity | ||
Related Party Transaction | ||
Management fee payable | $ | $ 7.5 | |
Administrative fee income | $ | $ 4 |
Land, Buildings and Improveme_3
Land, Buildings and Improvements, and Assets Held for Sale - Assets Subject to Operating Leases (Details) - Operating Real Estate - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,589,966) | $ (1,509,730) |
Net property subject to operating lease | 10,752,013 | 10,585,728 |
Land | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | 2,299,528 | 2,248,300 |
Buildings and improvements | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | 10,004,871 | 9,801,596 |
Real estate under construction | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | $ 37,580 | $ 45,562 |
Land, Buildings and Improveme_4
Land, Buildings and Improvements, and Assets Held for Sale - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) property $ / € | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property $ / € | Jun. 30, 2023 USD ($) property | Dec. 31, 2023 USD ($) property $ / € | |
Real Estate Properties | |||||
Decrease in exchange rate (as a percent) | 3.10% | ||||
Foreign currency exchange rate | $ / € | 1.0705 | 1.0705 | 1.1050 | ||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (24) | $ 9,479 | $ (4,362) | $ 15,936 | |
Land, buildings and improvements — net lease and other | 12,341,979 | 12,341,979 | $ 12,095,458 | ||
Net investments in finance leases and loans receivable | 320,714 | 320,714 | $ 431,328 | ||
Investments in real estate | |||||
Capitalized construction cost | $ 24,200 | ||||
Construction projects completed (property) | property | 3 | 11 | |||
Unfunded commitment | 92,600 | $ 92,600 | $ 71,800 | ||
Funding commitment | 44,100 | 44,100 | |||
Capitalized interest | 200 | 100 | 400 | 100 | |
Lease payments | 8,900 | $ 4,300 | 10,700 | 5,600 | |
Lease termination income | $ 11,400 | ||||
Assets held for sale, net | $ 7,743 | $ 7,743 | $ 37,122 | ||
Asset Held for Sale, Not in Discontinued Operations | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 1 | 1 | 2 | ||
Investments in real estate | |||||
Assets held for sale, net | $ 7,700 | $ 7,700 | $ 37,100 | ||
Properties Disposed of by Sale | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 1 | 1 | |||
Investments in real estate | |||||
Number of properties sold | property | 12 | 3 | 165 | 8 | |
Land, Buildings and Improvements | Properties Disposed of by Sale | |||||
Investments in real estate | |||||
Number of properties sold | property | 1 | 14 | |||
Increase (decrease) in carrying value of real estate | $ (102,900) | $ (102,900) | |||
Operating Lease | |||||
Real Estate Properties | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (111,700) | ||||
Number of real estate properties (property) | property | 24 | 24 | |||
Depreciation | $ 72,500 | $ 79,700 | $ 144,100 | $ 171,000 | |
Operating Real Estate | |||||
Real Estate Properties | |||||
Depreciation | $ 7,400 | $ 7,700 | 14,700 | $ 14,900 | |
Hotel | Land, Buildings and Improvements | Properties Disposed of by Sale | |||||
Investments in real estate | |||||
Increase (decrease) in carrying value of real estate | $ (14,300) | ||||
Hotel | Operating Real Estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 4 | 4 | 5 | ||
Self- Storage | Operating Real Estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 80 | 80 | 80 | ||
Student Housing | Operating Real Estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 2 | 2 | 2 | ||
Adjustments | |||||
Real Estate Properties | |||||
Land, buildings and improvements — net lease and other | $ 105,500 | $ 105,500 | |||
Net investments in finance leases and loans receivable | $ (105,500) | $ (105,500) | |||
Adjustments | Land, Buildings and Improvements — Net Lease and Other | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 14 | 14 |
Land, Buildings and Improveme_5
Land, Buildings and Improvements, and Assets Held for Sale - Acquisition of Real Estate (Details) $ in Thousands | 6 Months Ended | ||||||||||
Jun. 26, 2024 USD ($) property | Jun. 03, 2024 USD ($) property | May 15, 2024 USD ($) property | May 13, 2024 USD ($) property | Apr. 05, 2024 USD ($) property | Mar. 26, 2024 USD ($) property | Jan. 30, 2024 USD ($) property | Jan. 09, 2024 USD ($) property | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment | |||||||||||
Total Capitalized Costs | $ 448,088 | $ 895,034 | |||||||||
Secured debt | (467,200) | $ (579,147) | |||||||||
Non-Recourse Mortgage Loan | |||||||||||
Property, Plant and Equipment | |||||||||||
Secured debt | $ (21,900) | ||||||||||
Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 24 | ||||||||||
Total Capitalized Costs | $ 451,358 | ||||||||||
Operating Lease | Acquired Properties | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 12 | ||||||||||
Total Capitalized Costs | $ 110,601 | ||||||||||
Doncaster United Kingdom | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 2 | ||||||||||
Total Capitalized Costs | $ 30,055 | ||||||||||
Various Italy | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 5 | ||||||||||
Total Capitalized Costs | $ 148,130 | ||||||||||
Laval Canada | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 1 | ||||||||||
Total Capitalized Costs | $ 2,604 | ||||||||||
Commercial Point, Ohio | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 1 | ||||||||||
Total Capitalized Costs | $ 94,220 | ||||||||||
Tucson, Arizona | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 1 | ||||||||||
Total Capitalized Costs | $ 38,784 | ||||||||||
Various, United States | Operating Lease | Acquired Properties | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 5 | ||||||||||
Total Capitalized Costs | $ 44,400 | ||||||||||
Various, United States | Operating Lease | Acquired Properties | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 4 | ||||||||||
Total Capitalized Costs | $ 23,330 | ||||||||||
Sylacauga, Alabama | Operating Lease | Acquired Properties | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 1 | ||||||||||
Total Capitalized Costs | $ 5,852 | ||||||||||
Moxee, Washington and La Porte, Indiana | Operating Lease | Acquired Properties | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 2 | ||||||||||
Total Capitalized Costs | $ 37,019 | ||||||||||
Mesa and Laveen, Arizona | Operating Lease | |||||||||||
Property, Plant and Equipment | |||||||||||
Number of real estate properties (property) | property | 2 | ||||||||||
Total Capitalized Costs | $ 26,964 |
Land, Buildings and Improveme_6
Land, Buildings and Improvements, and Assets Held for Sale - Aggregate Purchase Price Allocation (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment | ||
Payment to acquire real estate | $ 448,088 | $ 895,034 |
Operating Lease | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | 451,358 | |
Operating Lease | Long-Term Debt | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | 1,459 | |
Operating Lease | In-place lease | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | $ 56,855 | |
Finite lived intangible assets useful life (in years) | 14 years 10 months 24 days | |
Operating Lease | Below Market Rent | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | $ 408 | |
Finite lived intangible assets useful life (in years) | 12 years 9 months 18 days | |
Land | Operating Lease | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | $ 82,449 | |
Buildings and improvements | Operating Lease | ||
Property, Plant and Equipment | ||
Payment to acquire real estate | $ 311,003 |
Land, Buildings and Improveme_7
Land, Buildings and Improvements, and Assets Held for Sale - Real Estate Under Construction (Details) - Construction in Progress $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) property | |
Property, Plant and Equipment | |
Number of real estate properties (property) | property | 3 |
Total Capitalized Costs | $ | $ 33,239 |
Salisbury, North Carolina | |
Property, Plant and Equipment | |
Number of real estate properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 14,737 |
Little Rock, Arkansas | |
Property, Plant and Equipment | |
Number of real estate properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 3,280 |
Irvine, California | |
Property, Plant and Equipment | |
Number of real estate properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 15,222 |
Land, Buildings and Improveme_8
Land, Buildings and Improvements, and Assets Held for Sale - Operating Lease Income (Details) - Owned Real Estate - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Lease, Lease Income | ||||
Lease income — fixed | $ 287,709 | $ 324,468 | $ 573,883 | $ 632,534 |
Lease income — variable | 36,395 | 44,656 | 72,472 | 88,926 |
Total operating lease income | $ 324,104 | $ 369,124 | $ 646,355 | $ 721,460 |
Land, Buildings and Improveme_9
Land, Buildings and Improvements, and Assets Held for Sale - Operating Real Estate (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate Properties | ||
Land, buildings and improvements — operating properties | $ 1,238,340 | $ 1,256,249 |
Less: Accumulated depreciation | (3,096,516) | (3,005,479) |
Land, Buildings and Improvements — Operating Leases | ||
Real Estate Properties | ||
Less: Accumulated depreciation | (88,885) | (80,057) |
Investments in real estate | 1,149,455 | 1,176,192 |
Land | Land, Buildings and Improvements — Operating Leases | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | 147,170 | 150,084 |
Buildings and improvements | Land, Buildings and Improvements — Operating Leases | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | 1,091,170 | 1,104,635 |
Real estate under construction | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | $ 0 | $ 1,530 |
Land, Buildings and Improvem_10
Land, Buildings and Improvements, and Assets Held for Sale - Summary of Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Long-Lived Assets Held-for-sale | ||
Accumulated depreciation and amortization | $ (3,711) | $ (23,460) |
Assets held for sale, net | 7,743 | 37,122 |
In-place lease intangible assets and other | ||
Long-Lived Assets Held-for-sale | ||
Assets Held-for-sale, gross | 778 | 5,222 |
Above-market rent intangible assets | ||
Long-Lived Assets Held-for-sale | ||
Assets Held-for-sale, gross | 0 | 8,374 |
Land, buildings and improvements — net lease and other | ||
Long-Lived Assets Held-for-sale | ||
Assets Held-for-sale, gross | $ 10,676 | $ 46,986 |
Finance Receivables - Direct Fi
Finance Receivables - Direct Financing Leases and Loans Receivable (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivables | ||
Sale-leaseback transactions accounted for as loans receivable | $ 311,068,000 | $ 236,611,000 |
Secured loans receivable | 15,000,000 | 11,250,000 |
Net investment In lease and loans receivable | 667,667,000 | 1,514,923,000 |
Loans receivable, allowance for credit losses | 2,100,000 | |
Financing receivable, allowance for credit loss | 0 | |
Loans Receivable | ||
Financing Receivables | ||
Allowance for credit loss | 6,200,000 | 800,000 |
Direct Financing Lease | ||
Financing Receivables | ||
Net investments in direct financing leases | 320,714,000 | 431,328,000 |
Sales-Type Leases | ||
Financing Receivables | ||
Net investments in direct financing leases | $ 20,885,000 | $ 835,734,000 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) property | Mar. 31, 2024 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2024 USD ($) property | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | |
Finance Receivables | ||||||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (24) | $ 9,479 | $ (4,362) | $ 15,936 | ||||
Net investments in finance leases and loans receivable | $ 320,714 | 320,714 | $ 431,328 | 320,714 | ||||
Land, buildings and improvements — net lease and other | 12,341,979 | 12,341,979 | 12,095,458 | 12,341,979 | ||||
Proceeds from repayment of loans receivable | $ 24,000 | 24,000 | 0 | |||||
Release of allowance for credit losses | $ 2,100 | |||||||
Unpaid interest | $ 1,400 | |||||||
Gain on sale of real estate, net | 39,363 | $ 1,808 | 54,808 | 179,557 | ||||
Self-Storage Properties Located in the United States | ||||||||
Finance Receivables | ||||||||
Gain on sale of real estate, net | $ 176,200 | |||||||
Direct Financing Lease | ||||||||
Finance Receivables | ||||||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (15,000) | |||||||
Direct Financing Lease | ||||||||
Finance Receivables | ||||||||
Number of properties sold | property | 1 | |||||||
Decrease in direct financing lease | $ 5,800 | |||||||
Sales-Type Lease | ||||||||
Finance Receivables | ||||||||
Loans receivable | 451,400 | |||||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | ||||||||
Finance Receivables | ||||||||
Notes receivable, face amount | $ 15,000 | $ 15,000 | $ 15,000 | |||||
Interest rate on loan (percent) | 15% | |||||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | Properties Located In Spain | ||||||||
Finance Receivables | ||||||||
Number of real estate properties (property) | property | 70 | 70 | 70 | |||||
Gain on sale of real estate, net | $ 59,100 | |||||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | Direct Financing Lease | ||||||||
Finance Receivables | ||||||||
Number of real estate properties (property) | property | 78 | 78 | 78 | |||||
Disposal Group, Held-for-Sale or Disposed of by Sale, Not Discontinued Operations | Sales-Type Lease | Properties Located In Spain | ||||||||
Finance Receivables | ||||||||
Loans receivable | $ 359,300 | |||||||
Adjustments | ||||||||
Finance Receivables | ||||||||
Net investments in finance leases and loans receivable | $ (105,500) | $ (105,500) | (105,500) | |||||
Land, buildings and improvements — net lease and other | $ 105,500 | $ 105,500 | $ 105,500 | |||||
Adjustments | Direct Financing Lease | ||||||||
Finance Receivables | ||||||||
Number of real estate properties (property) | property | 14 | 14 | 14 | |||||
Net investments in finance leases and loans receivable | $ (105,500) | $ (105,500) | $ (105,500) | |||||
Land, buildings and improvements — net lease and other | $ 105,500 | $ 105,500 | $ 105,500 |
Finance Receivables - Income fr
Finance Receivables - Income from Finance Leases and Loans Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||||
Net investments in direct financing leases | $ 8,763 | $ 12,751 | $ 17,692 | $ 25,449 |
Sale-leaseback transactions accounted for as loans receivable | 5,620 | 3,684 | 9,521 | 7,343 |
Net investments in sales-type leases | 578 | 9,688 | 11,576 | 12,917 |
Secured loans receivable | 0 | 1,188 | 1,965 | 2,357 |
Income from finance leases and loans receivable | $ 14,961 | $ 27,311 | $ 40,754 | $ 48,066 |
Finance Receivables - Net Inves
Finance Receivables - Net Investments in Direct Financing Lease (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivables | |||
Lease payments receivable | $ 197,995 | $ 285,512 | |
Unguaranteed residual value | 302,667 | 434,234 | |
Net investment in finance leases, excluding unearned income | 500,662 | 719,746 | |
Less: unearned income | (168,306) | (251,441) | |
Less: allowance for credit losses | (11,642) | (36,977) | |
Net receivables (difference between undiscounted cash flows and discounted cash flows) | 320,714 | $ 431,328 | |
Decrease in allowance for credit losses | (5,097) | $ (3,629) | |
Loans receivable, decrease in allowance for credit losses | 17,000 | ||
Net Investments in Direct Financing Lease | |||
Financing Receivables | |||
Decrease in allowance for credit losses | $ 8,400 | $ 3,600 |
Finance Receivables - Sales-lea
Finance Receivables - Sales-leaseback (Details) - Real Estate Associated with Sale-Leaseback $ in Thousands | Jun. 30, 2024 USD ($) | Mar. 26, 2024 property |
Accounts, Notes, Loans and Financing Receivable | ||
Number of real estate properties (property) | property | 4 | |
Total Investment | $ | $ 83,890 | |
Various Italy | ||
Accounts, Notes, Loans and Financing Receivable | ||
Number of real estate properties (property) | property | 4 | |
Total Investment | $ | $ 83,890 |
Finance Receivables - Net Inv_2
Finance Receivables - Net Investments in Sales-type Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Lease payments receivable | $ 21,460 | $ 849,881 |
Lease payments receivable including unearned income | 21,460 | 849,881 |
Less: unearned income | (575) | (14,147) |
Net receivables (difference between undiscounted cash flows and discounted cash flows) | $ 20,885 | $ 835,734 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Jun. 30, 2024 USD ($) tenant | Dec. 31, 2023 USD ($) tenant |
Credit Quality of Finance Receivables | ||
Net investments in direct financing leases | $ 685,499 | $ 1,554,830 |
Internally Assigned Grade1-3 | ||
Credit Quality of Finance Receivables | ||
Number of tenants (tenant) | tenant | 17 | 18 |
Net investments in direct financing leases | $ 592,885 | $ 1,338,877 |
Internally Assigned Grade 4 | ||
Credit Quality of Finance Receivables | ||
Number of tenants (tenant) | tenant | 7 | 8 |
Net investments in direct financing leases | $ 92,614 | $ 215,953 |
Internally Assigned Grade 5 | ||
Credit Quality of Finance Receivables | ||
Number of tenants (tenant) | tenant | 0 | 0 |
Net investments in direct financing leases | $ 0 | $ 0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets, Net | ||||
Decrease in goodwill as a result of foreign currency translation adjustments | $ 5,100 | |||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (24) | $ 9,479 | (4,362) | $ 15,936 |
Amortization of intangible assets | $ 62,000 | $ 63,600 | 104,700 | $ 131,200 |
Net Intangible Assets | ||||
Finite-Lived Intangible Assets, Net | ||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (12,900) |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets | ||
Accumulated Amortization | $ (1,418,391) | $ (1,435,261) |
Goodwill | ||
Total intangible assets, gross | 3,772,431 | 3,874,546 |
Total intangible assets, net | 2,354,040 | 2,439,285 |
Finite-Lived Intangible Liabilities | ||
Less: accumulated amortization | 73,735 | 66,541 |
Total intangible liabilities, gross | (202,445) | (203,413) |
Total intangible liabilities, net | (128,710) | (136,872) |
Below-market rent | ||
Finite-Lived Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (202,445) | (203,413) |
Less: accumulated amortization | 73,735 | 66,541 |
Net amortizable intangible liabilities | (128,710) | (136,872) |
Goodwill | ||
Goodwill | ||
Indefinite-lived intangible assets | 973,204 | 978,289 |
Contracts including internal software development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,334 | 20,745 |
Accumulated Amortization | (726) | (19,569) |
Net Carrying Amount | 1,608 | 1,176 |
Internal-use software development costs | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,334 | 20,745 |
Accumulated Amortization | (726) | (19,569) |
Net Carrying Amount | 1,608 | 1,176 |
Lease intangibles | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,796,893 | 2,875,512 |
Accumulated Amortization | (1,417,665) | (1,415,692) |
Net Carrying Amount | 1,379,228 | 1,459,820 |
In-place lease | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 2,120,227 | 2,168,739 |
Accumulated Amortization | (945,307) | (934,138) |
Net Carrying Amount | 1,174,920 | 1,234,601 |
Above-market rent | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 676,666 | 706,773 |
Accumulated Amortization | (472,358) | (481,554) |
Net Carrying Amount | $ 204,308 | $ 225,219 |
Equity Method Investments - Equ
Equity Method Investments - Equity Method Investments Excluding the Managed Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 10, 2021 | |
Equity Method Investment | ||||||
Equity method investments in real estate | $ 356,220 | $ 356,220 | $ 354,261 | |||
Funding commitment | 44,100 | 44,100 | ||||
Earnings from equity method investments | 6,636 | $ 4,355 | 11,500 | $ 9,591 | ||
Owned Real Estate | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investments in real estate | 356,220 | 356,220 | 354,261 | |||
Owned Real Estate | Las Vegas Retail Complex | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investments in real estate | $ 239,848 | 239,848 | 235,979 | |||
Owned Real Estate | Las Vegas Retail Complex | Construction Commitment | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investments in real estate | $ 236,300 | |||||
Funding commitment | $ 261,900 | |||||
Payments to settle other commitments | 4,900 | |||||
Earnings from equity method investments | $ 8,300 | $ 5,900 | ||||
Owned Real Estate | Johnson Self Storage | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investment, ownership (as a percent) | 90% | 90% | ||||
Equity method investments in real estate | $ 63,130 | $ 63,130 | 63,934 | |||
Owned Real Estate | Kesko Senukai | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investment, ownership (as a percent) | 70% | 70% | ||||
Equity method investments in real estate | $ 27,723 | $ 27,723 | 28,860 | |||
Owned Real Estate | Harmon Retail Corner | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investment, ownership (as a percent) | 15% | 15% | ||||
Equity method investments in real estate | $ 24,343 | $ 24,343 | 24,229 | |||
Owned Real Estate | CESH | Affiliated Entity | ||||||
Equity Method Investment | ||||||
Equity method investment, ownership (as a percent) | 2.43% | 2.43% | ||||
Equity method investments in real estate | $ 1,176 | $ 1,176 | $ 1,259 |
Equity Method Investments - Nar
Equity Method Investments - Narratives (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Equity investments | |||
Distributions of earnings from equity method investments | $ 12,147 | $ 9,931 | |
CESH | Affiliated Entity | |||
Equity investments | |||
Distributions of earnings from equity method investments | 0 | 500 | |
Owned Real Estate | Unconsolidated Real Estate Investment | |||
Equity investments | |||
Distributions of earnings from equity method investments | 13,000 | $ 19,900 | |
Aggregate unamortized basis difference on equity investments | $ 17,400 | $ 18,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) property shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value Inputs, Assets | |||||
Equity method investments in real estate | $ 356,220 | $ 356,220 | $ 354,261 | ||
Impairment charges — real estate | 15,752 | $ 0 | 15,752 | $ 0 | |
GCIF | |||||
Fair Value Inputs, Assets | |||||
Proceeds from liquidation distribution | (400) | ||||
Equity method investments in real estate | $ 400 | $ 400 | 800 | ||
Level 3 | Fair Value, Measurements, Nonrecurring | |||||
Fair Value Inputs, Assets | |||||
Number of impaired real estate properties (property) | property | 3 | 3 | |||
Impairment charges — real estate | $ 15,752 | $ 0 | $ 15,752 | $ 0 | |
Lineage | |||||
Fair Value Inputs, Assets | |||||
Shares owned (in shares) | shares | 5,541,478 | 5,541,478 | |||
Lineage | Level 3 | |||||
Fair Value Inputs, Assets | |||||
Dividend income | $ 3,000 | ||||
Fair value of investments | $ 404,900 | $ 404,900 | $ 404,900 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Debt issuance costs, net | $ 28,548 | |
Debt instrument, unamortized discount (premium), net | 35,570 | |
Level 2 and Level 3 | Carrying Value | Non-Recourse Mortgage, Net | ||
Liabilities: | ||
Debt issuance costs, net | 200 | $ 100 |
Debt instrument, unamortized discount (premium), net | 3,800 | 4,300 |
Level 3 | Carrying Value | Non-Recourse Mortgage, Net | ||
Liabilities: | ||
Debt instrument, fair value | 467,200 | 579,147 |
Level 3 | Fair Value | Non-Recourse Mortgage, Net | ||
Liabilities: | ||
Debt instrument, fair value | 466,516 | 572,553 |
Senior Unsecured Notes, net | Level 2 and Level 3 | Carrying Value | ||
Liabilities: | ||
Debt instrument, fair value | 6,519,887 | 6,035,686 |
Debt issuance costs, net | 28,000 | 21,000 |
Debt instrument, unamortized discount (premium), net | 25,600 | 20,100 |
Senior Unsecured Notes, net | Level 2 and Level 3 | Fair Value | ||
Liabilities: | ||
Debt instrument, fair value | $ 6,055,979 | $ 5,598,423 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairment of Assets Measured on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Impairment charges — real estate | $ 15,752 | $ 0 | $ 15,752 | $ 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 75,944 | 0 | 75,944 | 0 |
Impairment charges — real estate | $ 15,752 | $ 0 | $ 15,752 | $ 0 |
Risk Management and Use of De_3
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Summary of Derivative Instruments | |||||
Net collateral posted for derivatives | $ 0 | $ 0 | $ 0 | ||
Derivative, remaining maturity (in years) | 59 months | 59 months | |||
Total credit exposure on derivatives | $ 16,700,000 | $ 16,700,000 | |||
Derivatives, net liability position | 800,000 | 800,000 | 5,900,000 | ||
Aggregate termination value for immediate settlement | 800,000 | 800,000 | $ 6,000,000 | ||
Other comprehensive income foreign currency (losses) gains | 37,400,000 | $ 2,100,000 | 125,800,000 | $ (69,400,000) | |
Individual Counterparty | |||||
Summary of Derivative Instruments | |||||
Total credit exposure on derivatives | $ 3,000,000 | 3,000,000 | |||
Interest expense | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | (500,000) | ||||
Non-operating income | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | $ (10,100,000) |
Risk Management and Use of De_4
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 17,255 | $ 15,098 |
Liability derivatives, fair value | (785) | (5,924) |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 16,954 | 15,098 |
Liability derivatives, fair value | (785) | (5,707) |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 301 | 0 |
Liability derivatives, fair value | 0 | (217) |
Other assets, net | Foreign currency collars | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 16,351 | 14,103 |
Other assets, net | Foreign currency collars | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 301 | 0 |
Other assets, net | Interest rate swaps | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 603 | 995 |
Accounts payable, accrued expenses and other liabilities | Foreign currency collars | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (617) | (4,029) |
Accounts payable, accrued expenses and other liabilities | Foreign currency collars | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | 0 | (217) |
Accounts payable, accrued expenses and other liabilities | Interest rate swaps | Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | $ (168) | $ (1,678) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ (115) | $ (4,584) | $ 6,843 | $ (11,447) |
Derivatives in Cash Flow Hedging Relationships | Equity Method Investments | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | (100) | (400) | (500) | (800) |
Interest rate swaps | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | (447) | 1,827 | 1,183 | 1,197 |
Foreign currency collars | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | 332 | (6,412) | 5,660 | (12,638) |
Interest rate cap | Derivatives in Cash Flow Hedging Relationships | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ 0 | $ 1 | $ 0 | $ (6) |
Risk Management and Use of De_6
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Reclassified From OCI (Details) - Designated as Cash Flow Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | $ 3,578 | $ 3,667 | $ 6,595 | $ 8,342 |
Foreign currency collars | Non-operating income | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | 2,877 | 3,564 | 5,066 | 7,869 |
Interest rate swaps and cap | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | $ 701 | $ 103 | $ 1,529 | $ 473 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Total | $ (254) | $ 150 | $ 306 | $ (594) |
Interest rate swaps | Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Gain (loss) on hedging activity | (727) | (131) | (1,587) | (537) |
Foreign currency collars | Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Gain (loss) on hedging activity | 448 | 183 | 1,376 | (16) |
Foreign currency collars | Derivatives Not Designated as Hedging Instruments | Other gains and (losses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 25 | $ 98 | $ 517 | $ (41) |
Risk Management and Use of De_8
Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) - Designated as Cash Flow Hedging Instruments - Derivatives Designated as Hedging Instruments € in Thousands, $ in Thousands | Jun. 30, 2024 USD ($) derivative | Jun. 30, 2024 EUR (€) derivative |
Derivative Disclosure | ||
Fair value | $ 435 | |
Interest rate swaps | USD | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 3 | 3 |
Notional Amount | $ 21,268 | |
Fair value | $ 557 | |
Interest rate swaps | EUR | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 5 | 5 |
Notional Amount | € | € 544,327 | |
Fair value | $ (122) |
Risk Management and Use of De_9
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, £ in Thousands, $ in Thousands | Jun. 30, 2024 USD ($) derivative | Jun. 30, 2024 EUR (€) derivative | Jun. 30, 2024 GBP (£) derivative |
Derivative Disclosure | |||
Fair value, foreign currency derivatives | $ 16,035 | ||
Foreign currency collars | Derivatives Not Designated as Hedging Instruments | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 2 | 2 | 2 |
Notional Amount | € | € 10,000 | ||
Fair value, foreign currency derivatives | $ 301 | ||
Foreign currency collars | Designated as Cash Flow Hedging Instruments | Derivatives Designated as Hedging Instruments | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 51 | 51 | 51 |
Notional Amount | € | € 256,000 | ||
Fair value, foreign currency derivatives | $ 14,322 | ||
Foreign currency collars | Designated as Cash Flow Hedging Instruments | Derivatives Designated as Hedging Instruments | GBP | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 30 | 30 | 30 |
Notional Amount | £ | £ 19,080 | ||
Fair value, foreign currency derivatives | $ 1,412 |
Debt - Narratives (Details)
Debt - Narratives (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 28, 2024 USD ($) | May 16, 2024 EUR (€) | Apr. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2023 GBP (£) | |
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | $ 4,350,000,000 | $ 4,350,000,000 | ||||||||||
Non Recourse Debt | ||||||||||||
Weighted average interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Non-recourse mortgages, net | $ 467,200,000 | $ 467,200,000 | $ 579,147,000 | |||||||||
Repayments of non recourse mortgage loan | 127,683,000 | $ 138,764,000 | ||||||||||
Decrease in value of balance sheet item due to foreign currency translation | (24,000) | $ 9,479,000 | (4,362,000) | $ 15,936,000 | ||||||||
Non-Recourse Mortgage Loan | ||||||||||||
Non Recourse Debt | ||||||||||||
Non-recourse mortgages, net | $ 21,900,000 | $ 21,900,000 | ||||||||||
Fixed Interest Rate | ||||||||||||
Non Recourse Debt | ||||||||||||
Weighted average interest rate (as a percent) | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Variable Interest Rate | ||||||||||||
Non Recourse Debt | ||||||||||||
Weighted average interest rate (as a percent) | 5.40% | 5.40% | 5.40% | 5.40% | ||||||||
Unsecured Senior Notes | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Principal amount | $ 6,600,000,000 | $ 6,600,000,000 | ||||||||||
Stated interest rate (as a percent) | 4.60% | |||||||||||
Repayment of unsecured debt | $ 500,000,000 | |||||||||||
Non-Recourse Debt | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Stated interest rate (as a percent) | 4.80% | 4.80% | 4.80% | 4.80% | ||||||||
Non Recourse Debt | ||||||||||||
Repayments of non recourse mortgage loan | $ 84,900,000 | |||||||||||
Prepayments of mortgage principal | 33,800,000 | |||||||||||
Decrease in value of balance sheet item due to foreign currency translation | $ (150,500,000) | |||||||||||
Government Bond Yield | Unsecured Senior Notes | Minimum | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Variable interest rate (as a percent) | 0.20% | |||||||||||
Government Bond Yield | Unsecured Senior Notes | Maximum | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Variable interest rate (as a percent) | 0.35% | |||||||||||
4.25% Senior Notes due 2032 | Unsecured Senior Notes | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Principal amount | $ 400,000,000 | € 650,000,000 | $ 650,000,000 | $ 650,000,000 | ||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | |||||||
Undiscounted rate (as a percent) | 99.526% | |||||||||||
Debt instrument term (years) | 8 years 2 months 12 days | |||||||||||
5.375% Senior Notes due 2034 | Unsecured Senior Notes | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Principal amount | $ 400,000,000 | $ 400,000,000 | ||||||||||
Stated interest rate (as a percent) | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | |||||||
Undiscounted rate (as a percent) | 98.843% | |||||||||||
Debt instrument term (years) | 10 years | |||||||||||
2.25% Senior Notes due 2024 | Unsecured Senior Notes | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Principal amount | € | € 500,000,000 | |||||||||||
Stated interest rate (as a percent) | 2.25% | 2.25% | 2.25% | 2.25% | ||||||||
Unsecured Term Loans | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | € | € 500,000,000 | € 500,000,000 | ||||||||||
Unsecured Term Loans | Term Loan due 2026 | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | € | 300,000,000 | 300,000,000 | ||||||||||
Unsecured Term Loans | EUR Term Loan due 2028 — borrowing in euros | EURIBOR | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Variable interest rate (as a percent) | 0.85% | |||||||||||
Unsecured Term Loans | Delayed Draw Term Loan due 2026 | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | € | 200,000,000 | 200,000,000 | ||||||||||
Unsecured Revolving Credit Facility | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Line of credit facility, available | $ 2,000,000,000 | $ 2,000,000,000 | ||||||||||
Debt Instrument borrowing capacity fee (as a percent) | 0.15% | |||||||||||
Unsecured Revolving Credit Facility | Unsecured Credit Facility Maturing February 2029 | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||
Unsecured Revolving Credit Facility | GBP Term Loan due 2028 — borrowing in British pounds sterling | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | £ | £ 270,000,000 | £ 270,000,000 | ||||||||||
Unsecured Revolving Credit Facility | EUR Term Loan due 2028 — borrowing in euros | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Maximum borrowing capacity | € | € 215,000,000 | € 215,000,000 | ||||||||||
Standby Letters of Credit | ||||||||||||
Senior Unsecured Credit Facility | ||||||||||||
Line of credit facility, available | $ 5,800,000 | $ 5,800,000 |
Debt - Senior Unsecured Credit
Debt - Senior Unsecured Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 1,121,908 | $ 1,537,166 |
Unamortized discount | 35,570 | |
Debt financing costs | 28,548 | |
Unsecured Term Loans | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 1,106,903 | 1,133,381 |
Unamortized discount | 6,200 | 7,400 |
Debt financing costs | 300 | 400 |
Unsecured Term Loans | Unsecured Term Loan due 2026 — borrowing in euros | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 535,250 | 552,500 |
Effective interest rate (as a percent) | 4.34% | |
Unsecured Term Loans | GBP Term Loan due 2028 — borrowing in British pounds sterling | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 341,495 | 343,306 |
Unsecured Term Loans | EUR Term Loan due 2028 — borrowing in euros | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 230,158 | 237,575 |
Unsecured Term Loans | EURIBOR | Unsecured Term Loan due 2026 — borrowing in euros | ||
Senior Unsecured Credit Facility | ||
Stated interest rate (as a percent) | 4.34% | |
Variable interest rate (as a percent) | 0.85% | |
Unsecured Term Loans | EURIBOR | EUR Term Loan due 2028 — borrowing in euros | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (as a percent) | 0.85% | |
Unsecured Term Loans | SONIA | GBP Term Loan due 2028 — borrowing in British pounds sterling | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (as a percent) | 0.85% | |
Unsecured Revolving Credit Facility: | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 15,005 | 403,785 |
Unsecured Revolving Credit Facility: | JPY, Unsecured Credit Facility due 2029 | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 15,005 | 17,035 |
Unsecured Revolving Credit Facility: | Euro Unsecured Credit Facility due 2029 | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 0 | $ 386,750 |
Unsecured Revolving Credit Facility: | JPY LIBOR | JPY, Unsecured Credit Facility due 2029 | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (as a percent) | 0.775% |
Debt - Senior Unsecured Notes (
Debt - Senior Unsecured Notes (Details) | 1 Months Ended | |||||||
Jul. 31, 2024 EUR (€) | Apr. 30, 2024 USD ($) | Jul. 24, 2024 | Jun. 30, 2024 USD ($) | Jun. 30, 2024 EUR (€) | Jun. 28, 2024 USD ($) | May 16, 2024 EUR (€) | Dec. 31, 2023 USD ($) | |
Senior Unsecured Notes | ||||||||
Unamortized deferred financing costs | $ 28,548,000 | |||||||
Unamortized discount, net | 35,570,000 | |||||||
Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 4.60% | |||||||
Principal Amount | 6,600,000,000 | |||||||
Principal amount of debt outstanding | 6,573,513,000 | $ 6,076,875,000 | ||||||
Unamortized deferred financing costs | 28,000,000 | 21,100,000 | ||||||
Unamortized discount, net | $ 25,600,000 | 20,100,000 | ||||||
Repayment of unsecured debt | $ 500,000,000 | |||||||
Unsecured Senior Notes | Subsequent Events | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.25% | 2.25% | ||||||
Repayment of unsecured debt | € | € 500,000,000 | |||||||
Principal amount of debt repaid | € | € 500,000,000 | |||||||
4.6% Senior Notes due 2024 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 4.60% | 4.60% | ||||||
Principal Amount | $ 500,000,000 | |||||||
Principal amount of debt outstanding | $ 0 | 500,000,000 | ||||||
2.25% Senior Notes due 2024 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.25% | 2.25% | ||||||
Principal Amount | € | € 500,000,000 | |||||||
Principal amount of debt outstanding | $ 535,250,000 | 552,500,000 | ||||||
4.0% Senior Notes due 2025 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 4% | 4% | ||||||
Principal Amount | $ 450,000,000 | |||||||
Principal amount of debt outstanding | $ 450,000,000 | 450,000,000 | ||||||
2.25% Senior Notes due 2026 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.25% | 2.25% | ||||||
Principal Amount | € | € 500,000,000 | |||||||
Principal amount of debt outstanding | $ 535,250,000 | 552,500,000 | ||||||
4.25% Senior Notes due 2026 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 4.25% | 4.25% | ||||||
Principal Amount | $ 350,000,000 | |||||||
Principal amount of debt outstanding | $ 350,000,000 | 350,000,000 | ||||||
2.125% Senior Notes due 2027 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.125% | 2.125% | ||||||
Principal Amount | € | € 500,000,000 | |||||||
Principal amount of debt outstanding | $ 535,250,000 | 552,500,000 | ||||||
1.35% Senior Notes due 2028 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 1.35% | 1.35% | ||||||
Principal Amount | € | € 500,000,000 | |||||||
Principal amount of debt outstanding | $ 535,250,000 | 552,500,000 | ||||||
3.85% Senior Notes due 2029 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 3.85% | 3.85% | ||||||
Principal Amount | $ 325,000,000 | |||||||
Principal amount of debt outstanding | $ 325,000,000 | 325,000,000 | ||||||
3.41% Senior Notes due 2029 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 3.41% | 3.41% | ||||||
Principal Amount | € | € 150,000,000 | |||||||
Principal amount of debt outstanding | $ 160,575,000 | 165,750,000 | ||||||
0.95% Senior Notes due 2030 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 0.95% | 0.95% | ||||||
Principal Amount | € | € 525,000,000 | |||||||
Principal amount of debt outstanding | $ 562,013,000 | 580,125,000 | ||||||
2.4% Senior Notes due 2031 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.40% | 2.40% | ||||||
Principal Amount | $ 500,000,000 | |||||||
Principal amount of debt outstanding | $ 500,000,000 | 500,000,000 | ||||||
2.45% Senior Notes due 2032 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.45% | 2.45% | ||||||
Principal Amount | $ 350,000,000 | |||||||
Principal amount of debt outstanding | $ 350,000,000 | 350,000,000 | ||||||
4.25% Senior Notes due 2032 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 4.25% | 4.25% | 4.25% | |||||
Principal Amount | $ 650,000,000 | $ 400,000,000 | € 650,000,000 | |||||
Principal amount of debt outstanding | $ 695,825,000 | 0 | ||||||
3.7% Senior Notes due 2032 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 3.70% | 3.70% | ||||||
Principal Amount | € | € 200,000,000 | |||||||
Principal amount of debt outstanding | $ 214,100,000 | 221,000,000 | ||||||
2.25% Senior Notes due 2033 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 2.25% | 2.25% | ||||||
Principal Amount | $ 425,000,000 | |||||||
Principal amount of debt outstanding | $ 425,000,000 | 425,000,000 | ||||||
5.375% Senior Notes due 2034 | Unsecured Senior Notes | ||||||||
Senior Unsecured Notes | ||||||||
Coupon rate (as a percent) | 5.375% | 5.375% | 5.375% | |||||
Principal Amount | $ 400,000,000 | |||||||
Principal amount of debt outstanding | $ 400,000,000 | $ 0 |
Debt - Debt Principal Payments
Debt - Debt Principal Payments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Long-term Debt, by Maturity | |
2024 (remainder) | $ 602,952 |
2025 | 707,294 |
2026 | 1,510,520 |
2027 | 537,595 |
2028 | 1,156,892 |
Thereafter through 2034 | 3,651,313 |
Total principal payments | 8,166,566 |
Unamortized discount, net | (35,570) |
Unamortized deferred financing costs | (28,548) |
Total | $ 8,102,448 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Narratives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 30, 2023 | May 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Stock-based compensation expense | $ 8,900,000 | $ 9,000,000 | $ 17,759,000 | $ 16,761,000 | ||
Dividends declared (in dollars per share) | $ 0.870 | $ 1.069 | $ 1.735 | $ 2.136 | ||
Acquisition of noncontrolling interest | $ 0 | $ 0 | ||||
Minority Interest | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Remaining acquired amount (as a percent) | 3% | |||||
Ownership interest parent (as a percent) | 100% | |||||
Common Stock | 2017 Share Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Issuance of common stock (in shares) | 4,000,000 | 4,000,000 | ||||
Additional Paid-in Capital | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Acquisition of noncontrolling interest | $ 1,153,000 | $ 1,153,000 | ||||
ATM Program | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
Aggregate gross sales price | $ 1,000,000,000 |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Restricted and Conditional Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Weighted-Average Grant Date Fair Value | ||
Fair value of vested stock | $ 38,800 | |
Deferred compensation obligation | $ 78,379 | $ 62,046 |
RSA and RSU Awards | ||
Shares | ||
Nonvested, beginning balance (in shares) | 447,358 | |
Granted (in shares) | 266,896 | |
Vested (in shares) | (158,231) | |
Forfeited (in shares) | (3,393) | |
Adjustments (in shares) | 0 | |
Nonvested, ending balance (in shares) | 552,630 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ 77.69 | |
Granted, weighted average grant date fair value (in dollars per share) | 64.95 | |
Vested, weighted average grant date fair value (in dollars per share) | 76.52 | |
Forfeited, weighted average grant date fair value (in dollars per share) | 73.29 | |
Adjustments, weighted average grant date fair value (in dollars per share) | 0 | |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 71.45 | |
Conversion rate (in shares) | 1 | |
PSU Awards | ||
Shares | ||
Nonvested, beginning balance (in shares) | 526,413 | |
Granted (in shares) | 213,645 | |
Vested (in shares) | (309,670) | |
Forfeited (in shares) | (2,795) | |
Adjustments (in shares) | 36,984 | |
Nonvested, ending balance (in shares) | 464,577 | |
Weighted-Average Grant Date Fair Value | ||
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ 105.92 | |
Granted, weighted average grant date fair value (in dollars per share) | 82.95 | |
Vested, weighted average grant date fair value (in dollars per share) | 86.19 | |
Forfeited, weighted average grant date fair value (in dollars per share) | 101.04 | |
Adjustments, weighted average grant date fair value (in dollars per share) | 89.07 | |
Nonvested, weighted average grant date fair value (in dollars per share) | $ 112.29 | |
Performance period (in years) | 3 years | |
PSU Awards | Minimum | ||
Weighted-Average Grant Date Fair Value | ||
Potential performance return rate for stock awards | 0 | |
PSU Awards | Maximum | ||
Weighted-Average Grant Date Fair Value | ||
Potential performance return rate for stock awards | 3 | |
Long Term Incentive Plan | ||
Weighted-Average Grant Date Fair Value | ||
Fair value assumptions expected dividend rate (as a percent) | 0% | |
Deferred compensation arrangement with individual, common stock reserved for future issuance (in shares) | 1,389,682 | 1,196,955 |
Deferred compensation obligation | $ 78,400 | $ 62,000 |
Total unrecognized compensation expense | $ 56,600 | |
Weighted-average remaining term (in years) | 2 years | |
Long Term Incentive Plan | Minimum | ||
Weighted-Average Grant Date Fair Value | ||
Risk free interest rate (as a percent) | 4.10% | |
Fair value assumptions expected volatility rate (as a percent) | 20.50% |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share Reconciliation | ||||
Net income — basic | $ 142,895 | $ 144,620 | $ 302,118 | $ 439,000 |
Net income — diluted | $ 142,895 | $ 144,620 | $ 302,118 | $ 439,000 |
Weighted-average shares outstanding – basic (in shares) | 220,195,910 | 215,075,114 | 220,113,753 | 213,522,150 |
Effect of dilutive securities (in shares) | 18,208 | 109,371 | 147,772 | 353,321 |
Weighted-average shares outstanding – diluted (in shares) | 220,214,118 | 215,184,485 | 220,261,525 | 213,875,471 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity - Settlement of Equity Forwards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net proceeds | $ 249,863 | |||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock delivered | 3,081,867 | |||
Net proceeds | $ 3 | |||
Underwriting Agreement | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock delivered | 0 | 0 | 0 | 3,081,867 |
Net proceeds | $ 0 | $ 0 | $ 0 | $ 249,806 |
Stock-Based Compensation and _7
Stock-Based Compensation and Equity - Reclassifications Out of Accumulated Other Comprehensive Loss Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | $ 8,679,175 | $ 9,319,362 | $ 8,706,997 | $ 9,008,644 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (9,215) | (4,509) | (24,720) | (9,135) |
Interest expense | 65,307 | 75,488 | 133,958 | 142,684 |
Net current period other comprehensive income (loss) | (143) | 4,542 | 1,951 | 3,736 |
Ending equity balance | 8,639,499 | 9,246,932 | 8,639,499 | 9,246,932 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (252,516) | (284,558) | (254,867) | (283,780) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (252,640) | (279,931) | (252,640) | (279,931) |
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | 16,082 | 28,816 | 9,650 | 36,079 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | 15,963 | 23,879 | 15,963 | 23,879 |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (268,598) | (313,374) | (264,517) | (319,859) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (268,603) | (303,810) | (268,603) | (303,810) |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income before reclassifications | 3,435 | 8,209 | 8,546 | 12,078 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (3,578) | (3,667) | (6,595) | (8,342) |
Net current period other comprehensive income (loss) | (143) | 4,542 | 1,951 | 3,736 |
Net current period other comprehensive loss attributable to noncontrolling interests | 19 | 85 | 276 | 113 |
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (2,877) | (3,564) | (5,066) | (7,869) |
Interest expense | (701) | (103) | (1,529) | (473) |
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income before reclassifications | 3,459 | (1,270) | 12,908 | (3,858) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (3,578) | (3,667) | (6,595) | (8,342) |
Net current period other comprehensive income (loss) | (119) | (4,937) | 6,313 | (12,200) |
Net current period other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Gains and (Losses) on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (2,877) | (3,564) | (5,066) | (7,869) |
Interest expense | (701) | (103) | (1,529) | (473) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income before reclassifications | (24) | 9,479 | (4,362) | 15,936 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (24) | 9,479 | (4,362) | 15,936 |
Net current period other comprehensive loss attributable to noncontrolling interests | 19 | 85 | 276 | 113 |
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | 0 | 0 | 0 | 0 |
Interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 7,600 | $ 12,900 | $ 17,700 | $ 23,600 |
Deferred income tax (expense) benefit | $ 1,400 | $ 2,700 | $ 2,765 | $ (1,643) |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Dec. 31, 2023 property | |
Discontinued Operation Additional Disclosures | |||||
Proceeds from sales of real estate | $ 195,022 | $ 44,061 | |||
Hotel | Owned Real Estate | |||||
Discontinued Operation Additional Disclosures | |||||
Number of properties sold | property | 1 | 8 | |||
Properties Disposed of by Sale | |||||
Discontinued Operation Additional Disclosures | |||||
Number of properties sold | property | 12 | 3 | 165 | 8 | |
Proceeds from sales of real estate | $ 133,700 | $ 3,100 | $ 1,000,000 | $ 44,100 | |
Gain (loss) on sales of property | 39,400 | $ 1,800 | 54,800 | $ 3,400 | |
Gains losses on sales of investment real estate, tax expense (benefit) | $ (100) | $ 3,100 | |||
Properties Disposed of by Sale | Office Sales Program | |||||
Discontinued Operation Additional Disclosures | |||||
Number of properties sold | property | 3 | 75 | |||
Proceeds from sales of real estate | $ 61,900 | $ 451,900 | |||
Gain (loss) on sales of property | $ (1,700) | $ 400 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2024 USD ($) property store | Jul. 31, 2024 EUR (€) property store | Apr. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) property | Jul. 24, 2024 | |
Subsequent Event | ||||||||
Payment to acquire real estate | $ 448,088 | $ 895,034 | ||||||
Proceeds from sales of real estate | $ 195,022 | $ 44,061 | ||||||
Properties Disposed of by Sale | ||||||||
Subsequent Event | ||||||||
Number of real estate properties (property) | property | 1 | 1 | ||||||
Number of properties sold | property | 12 | 3 | 165 | 8 | ||||
Proceeds from sales of real estate | $ 133,700 | $ 3,100 | $ 1,000,000 | $ 44,100 | ||||
Properties Disposed of by Sale | Office Sales Program | ||||||||
Subsequent Event | ||||||||
Number of properties sold | property | 3 | 75 | ||||||
Proceeds from sales of real estate | $ 61,900 | $ 451,900 | ||||||
Unsecured Senior Notes | ||||||||
Subsequent Event | ||||||||
Repayment of unsecured debt | $ 500,000 | |||||||
Stated interest rate (as a percent) | 4.60% | |||||||
Subsequent Events | ||||||||
Subsequent Event | ||||||||
Number of real estate properties (property) | property | 2 | 2 | ||||||
Payment to acquire real estate | $ 67,300 | |||||||
Subsequent Events | United States | ||||||||
Subsequent Event | ||||||||
Number of real estate properties (property) | property | 4 | 4 | ||||||
Payment to acquire real estate | $ 38,000 | |||||||
Subsequent Events | POLAND | ||||||||
Subsequent Event | ||||||||
Payment to acquire real estate | $ 29,300 | |||||||
Number of stores | store | 114 | 114 | ||||||
Subsequent Events | Properties Disposed of by Sale | ||||||||
Subsequent Event | ||||||||
Number of properties sold | property | 4 | 4 | ||||||
Proceeds from sales of real estate | $ 74,900 | |||||||
Subsequent Events | Properties Disposed of by Sale | Office Sales Program | ||||||||
Subsequent Event | ||||||||
Number of properties sold | property | 2 | 2 | ||||||
Proceeds from sales of real estate | $ 50,900 | |||||||
Subsequent Events | Unsecured Senior Notes | ||||||||
Subsequent Event | ||||||||
Repayment of unsecured debt | € | € 500 | |||||||
Stated interest rate (as a percent) | 2.25% | 2.25% | 2.25% |