Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 1,390,213 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Registrant Name | CORPORATE PROPERTY ASSOCIATES 17 - GLOBAL INC | |
Entity Common Stock Shares Outstanding | 349,756,659 |
Consolidated Balance Sheets (UN
Consolidated Balance Sheets (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments in real estate | ||
Real estate | $ 2,713,108 | $ 2,745,424 |
Operating real estate | 259,716 | 258,971 |
Net investments in direct financing leases | 506,813 | 508,392 |
In-place lease intangible assets | 619,653 | 620,149 |
Other intangible assets | 108,175 | 103,918 |
Assets held for sale | 0 | 14,850 |
Investments in real estate | 4,207,465 | 4,251,704 |
Accumulated depreciation and amortization | (557,157) | (506,238) |
Net investments in real estate | 3,650,308 | 3,745,466 |
Equity investments in real estate | 534,435 | 451,105 |
Cash and cash equivalents | 165,084 | 273,635 |
Other assets, net | 288,779 | 228,717 |
Total assets | 4,638,606 | 4,698,923 |
Debt: | ||
Mortgage debt, net | 1,921,426 | 2,022,250 |
Senior Credit Facility, net | 77,215 | 49,751 |
Debt, net | 1,998,641 | 2,072,001 |
Accounts payable, accrued expenses and other liabilities | 119,774 | 128,911 |
Below-market rent and other intangible liabilities, net | 62,584 | 82,799 |
Deferred income taxes | 35,050 | 32,655 |
Due to affiliates | 12,228 | 11,723 |
Distributions payable | 56,388 | 55,830 |
Total liabilities | 2,284,665 | 2,383,919 |
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; 900,000,000 shares authorized; and 346,996,478 and 343,575,840 shares, respectively, issued and outstanding | 347 | 343 |
Additional paid-in capital | 3,143,260 | 3,106,456 |
Distributions in excess of accumulated earnings | (776,327) | (732,613) |
Accumulated other comprehensive loss | (111,800) | (156,676) |
Total stockholders’ equity | 2,255,480 | 2,217,510 |
Noncontrolling interests | 98,461 | 97,494 |
Total equity | 2,353,941 | 2,315,004 |
Total liabilities and equity | $ 4,638,606 | $ 4,698,923 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (UNAUDITED) (Parentheticals) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par or stated value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized, shares | 50,000,000 | 50,000,000 |
Preferred stock shares issued, shares | 0 | 0 |
Common stock, par or stated value (usd per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized, shares | 900,000,000 | 900,000,000 |
Common stock shares outstanding, shares | 346,996,478 | 343,575,840 |
Consolidated Statements of Inco
Consolidated Statements of Income (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Lease revenues: | ||||
Rental income | $ 71,754 | $ 71,829 | $ 163,008 | $ 143,083 |
Interest income from direct financing leases | 14,581 | 14,641 | 29,277 | 28,905 |
Total lease revenues | 86,335 | 86,470 | 192,285 | 171,988 |
Other real estate income | 9,575 | 13,672 | 18,912 | 26,489 |
Other operating income | 7,452 | 7,440 | 13,430 | 14,571 |
Other interest income | 3,151 | 1,603 | 4,891 | 3,363 |
Gross Revenues | 106,513 | 109,185 | 229,518 | 216,411 |
Operating Expenses | ||||
Depreciation and amortization | 28,063 | 28,980 | 58,882 | 56,315 |
Property expenses | 20,725 | 18,152 | 37,330 | 36,376 |
General and administrative | 3,806 | 3,862 | 7,376 | 8,328 |
Other real estate expenses | 3,427 | 5,060 | 6,779 | 9,883 |
Acquisition and other expenses | (440) | 3,983 | 310 | 5,340 |
Impairment charges | 0 | 0 | 4,519 | 0 |
Operating Expenses, Total | 55,581 | 60,037 | 115,196 | 116,242 |
Other Income and Expenses | ||||
Interest expense | (21,453) | (25,368) | (44,843) | (49,979) |
Other income and (expenses) | 10,273 | (1,674) | 15,930 | 4,366 |
Equity in earnings of equity method investments in real estate | 2,270 | 1,580 | 4,255 | 3,752 |
Loss on extinguishment of debt | (353) | (5,090) | (1,967) | (7,590) |
Gain on change in control of interests | 0 | 49,922 | 0 | 49,922 |
Nonoperating income expense | (9,263) | 19,370 | (26,625) | 471 |
Income before income taxes and gain on sale of real estate | 41,669 | 68,518 | 87,697 | 100,640 |
Provision for income taxes | (1,115) | (2,294) | (1,736) | (4,197) |
Income before gain on sale of real estate, net of tax | 40,554 | 66,224 | 85,961 | 96,443 |
Gain on sale of real estate, net of tax | 1,171 | 25,017 | 2,910 | 50,415 |
Net Income | 41,725 | 91,241 | 88,871 | 146,858 |
Net income attributable to noncontrolling interests (inclusive of Available Cash Distributions to a related party of $6,971, $5,859, $13,781 and $12,527, respectively) | (10,919) | (9,383) | (20,054) | (19,577) |
Net income attributable to CPA®:17 – Global | $ 30,806 | $ 81,858 | $ 68,817 | $ 127,281 |
Basic and Diluted Earnings Per Share (usd per share) | $ 0.09 | $ 0.24 | $ 0.20 | $ 0.37 |
Basic and Diluted Weighted-Average Shares Outstanding, shares | 347,672,836 | 341,349,946 | 346,739,936 | 340,373,494 |
Distributions Declared Per Share (usd per share) | $ 0.1625 | $ 0.1625 | $ 0.3250 | $ 0.3250 |
Consolidated Statements of Inc5
Consolidated Statements of Income (UNAUDITED) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses | ||||
Available Cash Distributions | $ 6,971 | $ 5,859 | $ 13,781 | $ 12,527 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Comprehensive Income Attributable to Parent | ||||
Net Income | $ 41,725 | $ 91,241 | $ 88,871 | $ 146,858 |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | 50,309 | (19,592) | 58,918 | 11,736 |
Change in net unrealized (loss) gain on derivative instruments | (10,139) | 4,139 | (12,692) | (7,605) |
Change in unrealized gain on marketable securities | 1 | 7 | 31 | 14 |
Total other comprehensive loss | 40,171 | (15,446) | 46,257 | 4,145 |
Comprehensive Income | 81,896 | 75,795 | 135,128 | 151,003 |
Amounts Attributable to Noncontrolling Interests | ||||
Net income | (10,919) | (9,383) | (20,054) | (19,577) |
Foreign currency translation adjustments | (1,122) | 470 | (1,381) | (441) |
Comprehensive income attributable to noncontrolling interests | (12,041) | (8,913) | (21,435) | (20,018) |
Comprehensive Income Attributable to CPA®:17 – Global | $ 69,855 | $ 66,882 | $ 113,693 | $ 130,985 |
Consolidated Statements of Equi
Consolidated Statements of Equity (UNAUDITED) - USD ($) $ in Thousands | Total | Total CPA®:17 – Global Stockholders | Common Stock | Additional Paid-In Capital | Distributions in Excess of Accumulated Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning equity balance, value at Dec. 31, 2015 | $ 2,294,595 | $ 2,197,347 | $ 337 | $ 3,037,727 | $ (700,912) | $ (139,805) | $ 97,248 |
Beginning equity balance, shares at Dec. 31, 2015 | 337,065,419 | ||||||
Statement of Equity | |||||||
Shares issued, value | 51,877 | 51,877 | $ 5 | 51,872 | |||
Shares issued, shares | 5,202,011 | ||||||
Shares issued to affiliates, value | 7,483 | 7,483 | $ 1 | 7,482 | |||
Shares issued to affiliates, shares | 737,217 | ||||||
Distributions declared | (110,521) | (110,521) | (110,521) | ||||
Distributions to noncontrolling interests | (19,752) | (19,752) | |||||
Net Income | 146,858 | 127,281 | 127,281 | 19,577 | |||
Contributions from noncontrolling interests | 6 | 6 | |||||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | 11,736 | 11,295 | 11,295 | 441 | |||
Change in net unrealized loss on derivative instruments | (7,605) | (7,605) | (7,605) | ||||
Change in unrealized gain on marketable securities | 14 | 14 | 14 | ||||
Repurchase of shares, value | (19,472) | (19,472) | $ (2) | (19,470) | |||
Repurchase of shares, shares | (2,034,606) | ||||||
Ending equity balance, value at Jun. 30, 2016 | 2,355,219 | 2,257,699 | $ 341 | 3,077,611 | (684,152) | (136,101) | 97,520 |
Ending equity balance, shares at Jun. 30, 2016 | 340,970,041 | ||||||
Beginning equity balance, value at Mar. 31, 2016 | (121,125) | ||||||
Statement of Equity | |||||||
Net Income | 91,241 | ||||||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | (19,592) | ||||||
Change in net unrealized loss on derivative instruments | 4,139 | ||||||
Change in unrealized gain on marketable securities | 7 | ||||||
Ending equity balance, value at Jun. 30, 2016 | 2,355,219 | 2,257,699 | $ 341 | 3,077,611 | (684,152) | (136,101) | 97,520 |
Ending equity balance, shares at Jun. 30, 2016 | 340,970,041 | ||||||
Beginning equity balance, value at Dec. 31, 2016 | $ 2,315,004 | 2,217,510 | $ 343 | 3,106,456 | (732,613) | (156,676) | 97,494 |
Beginning equity balance, shares at Dec. 31, 2016 | 343,575,840 | 343,575,840 | |||||
Statement of Equity | |||||||
Shares issued, value | $ 51,481 | 51,481 | $ 6 | 51,475 | |||
Shares issued, shares | 5,059,937 | ||||||
Shares issued to affiliates, value | 13,327 | 13,327 | $ 1 | 13,326 | |||
Shares issued to affiliates, shares | 1,316,699 | ||||||
Distributions declared | (112,531) | (112,531) | (112,531) | ||||
Distributions to noncontrolling interests | (20,468) | (20,468) | |||||
Net Income | 88,871 | 68,817 | 68,817 | 20,054 | |||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | 58,918 | 57,537 | 57,537 | 1,381 | |||
Change in net unrealized loss on derivative instruments | (12,692) | (12,692) | (12,692) | ||||
Change in unrealized gain on marketable securities | 31 | 31 | 31 | ||||
Repurchase of shares, value | (28,000) | (28,000) | $ (3) | (27,997) | |||
Repurchase of shares, shares | (2,955,998) | ||||||
Ending equity balance, value at Jun. 30, 2017 | $ 2,353,941 | 2,255,480 | $ 347 | 3,143,260 | (776,327) | (111,800) | 98,461 |
Ending equity balance, shares at Jun. 30, 2017 | 346,996,478 | 346,996,478 | |||||
Beginning equity balance, value at Mar. 31, 2017 | (150,849) | ||||||
Statement of Equity | |||||||
Net Income | $ 41,725 | ||||||
Other comprehensive income: | |||||||
Foreign currency translation adjustments | 50,309 | ||||||
Change in net unrealized loss on derivative instruments | (10,139) | ||||||
Change in unrealized gain on marketable securities | 1 | ||||||
Ending equity balance, value at Jun. 30, 2017 | $ 2,353,941 | $ 2,255,480 | $ 347 | $ 3,143,260 | $ (776,327) | $ (111,800) | $ 98,461 |
Ending equity balance, shares at Jun. 30, 2017 | 346,996,478 | 346,996,478 |
Consolidated Statements of Equ8
Consolidated Statements of Equity (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Distribution per share | ||||
Distributions declared per share, (usd per share) | $ 0.1625 | $ 0.1625 | $ 0.3250 | $ 0.3250 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flow - Operating Activities | ||
Net Cash Provided by Operating Activities | $ 118,985 | $ 92,924 |
Cash Flows — Investing Activities | ||
Capital contributions to equity investments in real estate | (149,074) | (6,125) |
Proceeds from sale of real estate, net | 111,279 | 107,650 |
Proceeds from repayment of preferred equity interest | 27,000 | 0 |
Return of capital from equity investments in real estate | 26,278 | 22,307 |
Acquisitions of real estate and direct financing leases | (11,439) | (51,781) |
Funding for build-to-suit projects and expansions | (9,197) | (2,385) |
Value added taxes refunded in connection with acquisition of real estate | 5,412 | 19,308 |
Changes in investing restricted cash | 5,291 | (76,645) |
Payment of deferred acquisition fees to an affiliate | (1,979) | (1,516) |
Value added taxes paid in connection with acquisition of real estate | (1,792) | (177) |
Capital expenditures on owned real estate | (1,425) | (5,908) |
Other investing activities, net | 1,014 | 1,327 |
Proceeds from sale of securities | 0 | 610 |
Net Cash Provided by Investing Activities | 1,368 | 6,665 |
Cash Flows — Financing Activities | ||
Scheduled payments and prepayments of mortgage principal | (329,321) | (57,969) |
Proceeds from mortgage financing | 178,695 | 107,441 |
Distributions paid | (111,973) | (109,888) |
Proceeds from Senior Credit Facility | 67,261 | 75,693 |
Proceeds from issuance of shares | 51,481 | 51,877 |
Repayments of Senior Credit Facility | (40,677) | (169,558) |
Repurchase of shares | (28,000) | (19,472) |
Distributions to noncontrolling interests | (20,468) | (19,752) |
Payment of financing costs and mortgage deposits, net of deposits refunded | (966) | (1,487) |
Other financing activities, net | (598) | 0 |
Changes in financing restricted cash | (14) | (455) |
Contributions from noncontrolling interests | 0 | 6 |
Net Cash Used in Financing Activities | (234,580) | (143,564) |
Change in Cash and Cash Equivalents During the Period | ||
Effect of exchange rate changes on cash | 5,676 | 340 |
Net decrease in cash and cash equivalents | (108,551) | (43,635) |
Cash and cash equivalents, beginning of period | 273,635 | 152,889 |
Cash and cash equivalents, end of period | $ 165,084 | $ 109,254 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Corporate Property Associates 17 – Global Incorporated, or CPA ® :17 – Global, together with its consolidated subsidiaries, is a publicly owned, non-traded real estate investment trust, or REIT, that invests primarily in commercial real estate properties leased to companies both domestically and internationally. We were formed in 2007 and are managed by W. P. Carey Inc., or WPC, through one of its subsidiaries, or collectively, our Advisor. As a REIT, we are not subject to U.S. federal income taxation as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, among other factors. We earn revenue primarily by leasing the properties we own to single corporate tenants, predominantly on a triple-net leased basis, which requires the tenant to pay substantially all of the costs associated with operating and maintaining the property. Revenue is subject to fluctuation due to the timing of new lease transactions, lease terminations, lease expirations, contractual rent adjustments, tenant defaults, sales of properties, and changes in foreign currency exchange rates. Substantially all of our assets and liabilities are held by CPA ® :17 Limited Partnership, or the Operating Partnership, and at June 30, 2017 , we owned 99.99% of general and limited partnership interests in the Operating Partnership. The remaining interest in the Operating Partnership is held by a subsidiary of WPC. At June 30, 2017 , our portfolio was comprised of full or partial ownership interests in 410 properties, substantially all of which were fully-occupied and triple-net leased to 117 tenants, and totaled approximately 45 million square feet. In addition, our portfolio was comprised of full or partial ownership interests in 38 operating properties, including 37 self-storage properties and one hotel property, for an aggregate of approximately three million square feet. As opportunities arise, we may also make other types of commercial real estate-related investments. We operate in two reportable business segments: Net Lease and Self Storage. Our Net Lease segment includes our domestic and foreign investments in net-leased properties, whether they are accounted for as operating or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. In addition, we have investments in loans receivable, commercial mortgage-backed securities, or CMBS, one hotel, and other properties, which are included in our All Other category ( Note 14 ). Our reportable business segments and All Other category are the same as our reporting units. We raised aggregate gross proceeds of approximately $2.9 billion from our initial public offering, which closed in April 2011, and our follow-on offering, which closed in January 2013. In addition, from inception through June 30, 2017 , $625.4 million of distributions to our shareholders were reinvested in our common stock through our Distribution Reinvestment Plan, or DRIP. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2016 , which are included in the 2016 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Basis of Consolidation — Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries and our tenancy-in-common interest, as described below. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a variable interest entity, or VIE, and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets. At June 30, 2017 , we considered 21 entities to be VIEs, eight of which we consolidated as we are considered the primary beneficiary and one of which we accounted for as a loan receivable. The following table presents a summary of selected financial data of the consolidated VIEs, included in the consolidated balance sheets (in thousands): As Revised (a) (b) As Revised (a) (c) As Revised (a) (d) June 30, 2017 March 31, 2017 December 31, 2016 December 31, 2015 Real estate $ 107,311 $ 104,488 $ 225,347 $ 225,270 Operating real estate — — 11,388 — Net investments in direct financing leases 311,362 315,582 315,251 303,112 In-place lease intangible assets 8,342 7,949 8,795 7,909 Accumulated depreciation and amortization (23,442 ) (21,631 ) (25,000 ) (19,049 ) Other assets, net 40,857 41,161 52,565 54,888 Total assets 447,325 450,876 590,526 578,989 Mortgage debt, net $ 128,733 $ 129,414 $ 192,839 $ 187,639 Accounts payable, accrued expenses and other liabilities 6,751 6,922 11,187 12,352 Deferred income taxes 16,319 16,344 15,687 10,675 Total liabilities 152,175 153,051 220,077 211,060 ___________ (a) In the second quarter of 2017, we reclassified certain line items in our consolidated balance sheets. As a result, net investments in real estate in the prior periods has been revised to the current period presentation. (b) The consolidated financial statements as of and for the three months ended March 31, 2017 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of March 31, 2017 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of March 31, 2017 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $22.4 million ; (iv) other assets, net by $13.2 million ; (v) total assets by $123.7 million ; (vi) mortgage debt, net by $72.5 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.2 million ; and (viii) total liabilities by $76.0 million . (c) The consolidated financial statements as of and for the year ended December 31, 2016 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of December 31, 2016 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of December 31, 2016 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $21.6 million ; (iv) other assets, net by $13.0 million ; (v) total assets by $124.4 million ; (vi) mortgage debt, net by $73.0 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.3 million ; and (viii) total liabilities by $76.6 million . (d) The consolidated financial statements as of and for the year ended December 31, 2015 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of December 31, 2015 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of December 31, 2015 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $18.2 million ; (iv) other assets, net by $11.8 million ; (v) total assets by $126.5 million ; (vi) mortgage debt, net by $75.2 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.3 million ; and (viii) total liabilities by $78.8 million . At June 30, 2017 and December 31, 2016 , we had 12 and 13 unconsolidated VIEs, respectively, 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. As of June 30, 2017 and December 31, 2016 , the net carrying amount of our investments in these entities was $404.4 million and $377.4 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. At June 30, 2017 , we had an investment in a tenancy-in-common interest in a portfolio of international properties. Consolidation of this investment is not required as such interest does not qualify as a VIE and does not meet the control requirement for consolidation. Accordingly, we account for this investment using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of this investment. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. At June 30, 2017 , none of our equity investments had carrying values below zero. Reclassifications — Certain prior period amounts have been reclassified to conform to the current period presentation. We currently present Loss on extinguishment of debt on its own line item in the consolidated financial statements, which was previously included in Other income and (expenses). In the second quarter of 2017, we reclassified in-place lease intangible assets, net and other intangible assets, net to be included within Net investments in real estate in our consolidated balance sheets. The accumulated amortization on these assets is now included in Accumulated depreciation and amortization in our consolidated balance sheets. In addition, we reclassified goodwill, which was previously included in other intangibles, net to be included in Other assets, net. Prior period balances have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will apply to reimbursed tenant costs and revenues generated from our operating properties. We will adopt this guidance for our annual and interim periods beginning January 1, 2018 using one of two methods: retrospective restatement for each reporting period presented at the time of adoption, or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. We have not decided which method of adoption we will use. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. The new standard also replaces existing sale-leaseback guidance with a new model applicable to both lessees and lessors. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. The ASU is expected to impact our consolidated financial statements as we have certain operating office and land lease arrangements for which we are the lessee. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 intends to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities, collectively referred to as a “set,” that is a business usually has outputs, outputs are not required to be present. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. ASU 2017-01 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We elected to early adopt ASU 2017-01 on January 1, 2017 on a prospective basis. While our acquisitions have historically been classified as either business combinations or asset acquisitions, certain acquisitions that were classified as business combinations by us likely would have been considered asset acquisitions under the new standard. As a result, transaction costs are more likely to be capitalized since we expect most of our future acquisitions to be classified as asset acquisitions under this new standard. In addition, goodwill that was previously allocated to businesses that were sold or held for sale will no longer be allocated and written off upon sale if future sales were deemed to be sales of assets and not businesses. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 removes step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years in which a goodwill impairment test is performed, with early adoption permitted. We adopted ASU 2017-04 as of April 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Transactions with Our Advisor We have an advisory agreement with our Advisor whereby our Advisor performs certain services for us under a fee arrangement, including the identification, evaluation, negotiation, purchase, and disposition of real estate and related assets and mortgage loans; day-to-day management; and the performance of certain administrative duties. We also reimburse our Advisor for general and administrative duties performed on our behalf. The advisory agreement has a term of one year and may be renewed for successive one-year periods. We may terminate the advisory agreement upon 60 days’ written notice without cause or penalty. The following tables present a summary of fees we paid, expenses we reimbursed, and distributions we made to our Advisor and other affiliates in accordance with the relevant agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Income Asset management fees $ 7,339 $ 7,484 $ 14,664 $ 14,966 Available Cash Distributions 6,971 5,859 13,781 12,527 Personnel and overhead reimbursements 2,310 2,364 4,601 5,025 Interest expense on deferred acquisition fees and loan from affiliate 68 66 132 129 Director compensation 53 53 106 105 Acquisition expenses — 218 — 1,441 $ 16,741 $ 16,044 $ 33,284 $ 34,193 Acquisition Fees Capitalized Current acquisition fees $ 3,537 $ 543 $ 3,823 $ 557 Deferred acquisition fees 2,829 434 3,058 445 Personnel and overhead reimbursements 379 40 486 101 $ 6,745 $ 1,017 $ 7,367 $ 1,103 The following table presents a summary of amounts included in Due to affiliates in the consolidated financial statements (in thousands): June 30, 2017 December 31, 2016 Due to Affiliates Deferred acquisition fees, including interest $ 7,346 $ 6,584 Asset management fees payable 2,463 2,250 Reimbursable costs 2,214 2,299 Accounts payable 191 360 Current acquisition fees 14 230 $ 12,228 $ 11,723 Acquisition and Disposition Fees We pay our Advisor acquisition fees for structuring and negotiating investments and related mortgage financing on our behalf, a portion of which is payable upon acquisition of investments, with the remainder subordinated to the achievement of a preferred return, which is a non-compounded cumulative distribution of 5.0% per annum (based initially on our invested capital). Acquisition fees payable to our Advisor with respect to our long-term, net-leased investments are 4.5% of the total cost of those investments and are comprised of a current portion of 2.5% , typically paid upon acquisition, and a deferred portion of 2.0% , typically paid over three years and subject to the 5.0% preferred return described above. The preferred return was achieved as of each of the cumulative periods ended June 30, 2017 and December 31, 2016 . For certain types of non-long term net-leased investments, initial acquisition fees are between 1.0% and 1.75% of the equity invested plus the related acquisition fees, with no portion of the payment being deferred. Unpaid installments of deferred acquisition fees are included in Due to affiliates in the consolidated financial statements. Unpaid installments of deferred acquisition fees bear interest at an annual rate of 5.0% . The cumulative total acquisition costs, including acquisition fees paid to the advisor, may not exceed 6.0% of the aggregate contract purchase price of all investments, which is measured at the end of each year. Our cumulative total acquisition costs have not exceeded the amount that would require our Advisor to reimburse us. Our Advisor may be entitled to receive a disposition fee equal to the lesser of (i) 50.0% of the competitive real estate commission (as defined in the advisory agreement) or (ii) 3.0% of the contract sales price of the investment being sold; however, payment of such fees is subordinated to the 5.0% preferred return. These fees are payable at the discretion of our board of directors. Asset Management Fees As described in the advisory agreement, we pay our Advisor asset management fees that vary based on the nature of the underlying investment. We pay 0.5% per annum of average market value for long-term net leases and certain other types of real estate investments, and 1.5% to 1.75% per annum of average equity value for certain types of securities. Asset management fees are payable in cash and/or shares of our common stock at our option, after consultation with our Advisor. If our Advisor receives all or a portion of its fees in shares, the number of shares issued is determined by dividing the dollar amount of fees by our most recently published estimated net asset value per share, or NAV, which was $10.11 as of December 31, 2016 . For the six months ended June 30, 2017 , we paid our Advisor 100.0% of its asset management fees in shares of our common stock. For the year ended December 31, 2016 , we paid our Advisor 50.0% of its asset management fees in cash and 50.0% in shares of our common stock. At June 30, 2017 , our Advisor owned 13,190,709 shares ( 3.8% ) of our common stock. Asset management fees are included in Property expenses in the consolidated financial statements. Available Cash Distribution WPC’s interest in the Operating Partnership entitles it to receive distributions of 10.0% of available cash generated by the Operating Partnership, referred to as the Available Cash Distribution, which is defined as cash generated from operations, excluding capital proceeds, as reduced by operating expenses and debt service, excluding prepayments and balloon payments. Available Cash Distributions are included in Net income attributable to noncontrolling interests in the consolidated financial statements. Personnel and Overhead Reimbursements Under the terms of the advisory agreement, our Advisor allocates a portion of its personnel and overhead expenses to us and the other entities that are managed by our Advisor, including Corporate Property Associates 18 – Global Incorporated, or CPA ® :18 – Global; Carey Watermark Investors Incorporated, or CWI 1; Carey Watermark Investors 2 Incorporated, or CWI 2; Carey Credit Income Fund, or CCIF; and Carey European Student Housing Fund I, L.P., or CESH I; collectively referred to as the Managed Programs. Our Advisor allocates these expenses to us on the basis of our trailing four quarters of reported revenues in comparison to those of WPC and other entities managed by WPC and its affiliates. We reimburse our Advisor for various expenses it incurs in the course of providing services to us. We reimburse certain third-party expenses paid by our Advisor on our behalf, including property-specific costs, professional fees, office expenses, and business development expenses. In addition, we reimburse our Advisor for the allocated costs of personnel and overhead in managing our day-to-day operations, including accounting services, stockholder services, corporate management, and property management and operations. We do not reimburse our Advisor for the cost of personnel if these personnel provide services for transactions for which our Advisor receives a transaction fee, such as for acquisitions and dispositions. As per the advisory agreement, the amount of applicable personnel costs allocated to us is capped at 2.0% and 2.2% for 2017 and 2016, respectively, of pro rata lease revenues for each year. Costs related to our Advisor’s legal transactions group are based on a schedule of expenses relating to services performed for different types of transactions, such as financings, lease amendments, and dispositions, among other categories, and includes 0.25% of the total investment cost of an acquisition. In general, personnel and overhead reimbursements are included in General and administrative expenses in the consolidated financial statements. However, we capitalize certain of the costs related to our Advisor’s legal transactions group if the costs relate to a transaction that is not considered to be a business combination. Excess Operating Expenses Our Advisor is obligated to reimburse us for the amount by which our operating expenses exceeds the “ 2% / 25% guidelines” (the greater of 2% of average invested assets or 25% of net income) as defined in the advisory agreement for any 12-month period, subject to certain conditions. For the most recent four trailing quarters, our operating expenses were below this threshold. Jointly Owned Investments and Other Transactions with Affiliates At June 30, 2017 , we owned interests ranging from 6% to 97% in jointly owned investments, with the remaining interests held by affiliates or by third parties. We consolidate certain of these investments and account for the remainder under the equity method of accounting. We also owned an interest in a jointly controlled tenancy-in-common interest in several properties, which we account for under the equity method of accounting ( Note 6 ). At December 31, 2016 , we had $0.9 million due from an affiliate related to one of our jointly owned investments, which has since been repaid. |
Real Estate, Operating Real Est
Real Estate, Operating Real Estate, and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Real Estate, Operating Real Estate, and Assets Held for Sale | Real Estate, Operating Real Estate, and Assets Held for Sale Real Estate Real estate, which consists of land and buildings leased to others, at cost, and which are subject to operating leases, is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Land $ 555,590 $ 563,050 Buildings and improvements 2,157,518 2,182,374 Less: Accumulated depreciation (315,987 ) (280,657 ) $ 2,397,121 $ 2,464,767 The carrying value of our real estate increased by $88.4 million from December 31, 2016 to June 30, 2017 , due to the weakening of the U.S. dollar relative to foreign currencies, particularly the euro, during the period. Depreciation expense, including the effect of foreign currency translation, on our real estate was $15.9 million and $16.0 million for the three months ended June 30, 2017 and 2016 , respectively, and $32.2 million and $31.9 million for the six months ended June 30, 2017 and 2016 , respectively. Acquisition of Real Estate During 2017 On February 2, 2017, we acquired an office facility in Buffalo Grove, Illinois, which was deemed to be a real estate asset acquisition, at a total cost of $11.5 million , including land of $2.0 million , building of $7.5 million (including acquisition-related costs of $0.5 million , which were capitalized), and an intangible asset of $2.0 million ( Note 7 ). Operating Real Estate Operating real estate, which consists of our wholly owned domestic self-storage operations, at cost, is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Land $ 55,645 $ 55,645 Buildings and improvements 204,071 203,326 Less: Accumulated depreciation (22,217 ) (18,876 ) $ 237,499 $ 240,095 Depreciation expense on our operating real estate was $1.7 million and $2.3 million for the three months ended June 30, 2017 and 2016 , respectively, and $3.3 million and $4.5 million for the six months ended June 30, 2017 and 2016 , respectively. Dispositions and Assets Held for Sale Below is a summary of our properties held for sale (in thousands): June 30, 2017 December 31, 2016 Real estate, net $ — $ 14,850 Assets held for sale $ — $ 14,850 At December 31, 2016 , we had a property classified as Assets held for sale. On March 13, 2017, we sold this property for $14.1 million , net of closing costs, to a third party. In addition, during the three months ended June 30, 2017 , we sold three net-leased properties, two of which were accounted for as direct financing leases ( Note 5 , Note 13 ). I-drive Property Disposition and I-drive Wheel Restructuring In 2012, we entered into a contract for the construction of a domestic build-to-suit project with IDL Master Tenant, LLC, a developer, for the construction of an entertainment complex, which we refer to as the I-drive Property , and an observation wheel, which we refer to as the I-drive Wheel , at the I-drive Property . We had accounted for the construction of the I-drive Property as Real estate under construction. The funding of the I-drive Wheel was provided in the form of a $50.0 million loan, which we refer to as the Wheel Loan , pursuant to the guidance of the acquisition, development and construction of real estate, or ADC Arrangement. We accounted for the Wheel Loan under the equity method of accounting as the characteristics of the arrangement with the third-party developer were more similar to a jointly-owned investment or partnership rather than a loan ( Note 6 ). During 2015, the construction on both the I-drive Property and the I-drive Wheel were completed and placed into service. On March 17, 2017, the developer exercised its purchase option and acquired the I-drive Property for a purchase price of $117.5 million ( Note 13 ). The $60.0 million non-recourse mortgage loan encumbering the I-drive Property was repaid at closing by the buyer ( Note 10 ). In connection with the disposition, we provided seller financing in the form of a $34.0 million mezzanine loan ( Note 5 ), which was considered to be a non-cash investing activity, and the sale was accounted for under the cost recovery method. As a result, the $2.1 million gain on sale was deferred and will be recognized upon recovery of the cost of the property. As a result of the sale of the I-drive Property , we no longer consider this entity to be a VIE at June 30, 2017 . |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in direct financing leases and loans receivable. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated financial statements. Our loans receivable are included in Other assets, net in the consolidated financial statements. Earnings from our loans receivable are included in Other interest income in the consolidated financial statements. Net Investments in Direct Financing Leases In June 2017, we sold two net-leased properties located in Lima and Miamisburg, Ohio, to Civitas Media, LLC for net proceeds of $6.1 million ( Note 13 ). These properties were previously accounted for as direct financing leases. We retained the remaining four net-leased properties leased to this tenant. Loans Receivable In connection with the I-drive Property disposition ( Note 4 , Note 13 ), on March 17, 2017 we provided seller financing in the form of a $34.0 million mezzanine loan ( Note 4 ) to the developer of the I-drive Property , which has an interest rate of 9.0% and is scheduled to mature in April 2019 with an option to extend to April 2020. In addition to the sale of the I-drive Property , we restructured the Wheel Loan ( Note 4 ) on March 17, 2017. Under the original ADC Arrangement that was accounted for as an equity method investment ( Note 6 ), (i) we provided all the equity for the initial construction and carried all of the risk, (ii) all interest and fees on the Wheel Loan were added to the Wheel Loan balance, and (iii) we participated in the residual profits of the I-drive Wheel post-construction through rents we received pursuant to a ground lease. The Wheel Loan was amended as follows: • $5.0 million of principal was repaid. • $10.0 million of principal was converted into separate loans to two individuals associated with the developer. These loans are guaranteed by their 80.0% equity interest in the I-Shops Property that we originally owned and sold back to the developer in 2014. The loans have an interest rate of 6.5% and are scheduled to mature in December 2018 with an option to extend to April 2020. • We reduced the interest rate to 6.5% on the remaining $35.0 million and extended the maturity in December 2018 with an option to extend to December 2020. In connection with the restructuring of the Wheel Loan , we determined that the loan no longer meets ADC equity investment classification since (i) the construction is now completed, (ii) the borrowers have contributed cash and equity pledges as security which substantially reduced our risk, and (iii) we no longer participate in the residual profits through the ground lease rents (pursuant to the aforementioned I-drive Property disposition mentioned in Note 4 ). As a result, we reclassed the combined $45.0 million loan balance noted above to loan receivable, included in Other Assets, net which was a non-cash investing activity. A deferred gain of $16.4 million was recorded during the first quarter which was the difference between the fair value of the loan of $35.0 million and the $18.6 million carrying value of our previously held equity investment on March 17, 2017. The deferred gain related to the restructuring of the Wheel Loan will be recognized into income upon recovery of the cost of the Wheel Loan . At June 30, 2017 and December 31, 2016 , we had five and one loans receivable with outstanding balances of $110.5 million and $31.5 million , respectively, which are included in Other assets, net in the consolidated financial statements. Credit Quality of Finance Receivables We generally seek investments in facilities that we believe are critical to a tenant’s business and have a low risk of tenant default. At both June 30, 2017 and December 31, 2016 , we had no significant finance receivable balances that were past due and we had not established any allowances for credit losses. Additionally, there were no modifications of finance receivables during the six months ended June 30, 2017 or the year ended December 31, 2016 . 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. The credit quality evaluation of our finance receivables was last updated in the second quarter of 2017 . A summary of our finance receivables by internal credit quality rating is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 1 — — $ — $ — 2 2 2 62,365 61,949 3 9 9 413,949 412,075 4 6 5 108,094 65,868 5 2 — 32,905 — $ 617,313 $ 539,892 |
Equity Investments in Real Esta
Equity Investments in Real Estate | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in Real Estate | Equity Investments in Real Estate We own equity interests in net-leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly owned with affiliates. We account for these investments under the equity method of accounting. Earnings for each investment are recognized in accordance with each respective investment agreement and, where applicable, based upon an allocation of the investment’s net assets at book value as if the investment were hypothetically liquidated at the end of each reporting period. As required by current authoritative accounting guidance, we periodically compare an investment’s carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary. Additionally, we provide funding to developers for ADC Arrangements, under which we have provided loans to third-party developers of real estate projects, which we account for as equity investments as the characteristics of the arrangement with the third-party developers are more similar to a jointly owned investment or partnership rather than a loan. The following table presents Equity in earnings of equity method investments in real estate, which represents our proportionate share of the income or losses of these investments, as well as amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Equity Earnings from Equity Investments: Net Lease (a) $ 2,475 $ 4,761 $ 7,430 $ 8,313 All Other 460 (2,124 ) (1,648 ) (1,862 ) Self Storage — — — (394 ) 2,935 2,637 5,782 6,057 Amortization of Basis Differences on Equity Investments: Net Lease (562 ) (820 ) (1,125 ) (1,640 ) All Other (103 ) (237 ) (402 ) (626 ) Self Storage — — — (39 ) (665 ) (1,057 ) (1,527 ) (2,305 ) Equity in earnings of equity method investments in real estate $ 2,270 $ 1,580 $ 4,255 $ 3,752 __________ (a) For both the three and six months ended June 30, 2017 , amounts include impairment charges of $2.5 million related to one of our equity investments ( Note 8 ). The following table sets forth our ownership interests in our equity method investments in real estate and their respective carrying values, along with those ADC Arrangements that are recorded as equity investments (dollars in thousands): Ownership Interest at Carrying Value at Lessee/Equity Investee Co-owner June 30, 2017 June 30, 2017 December 31, 2016 Net Lease: Hellweg Die Profi-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) (a) (b) (c) WPC 37% $ 104,637 $ 10,125 Jumbo Logistiek Vastgoed B.V. (a) (d) WPC 85% 55,215 54,621 Kesko Senukai (a) (e) Third Party 70% 55,069 — U-Haul Moving Partners, Inc. and Mercury Partners, LP (b) WPC 12% 36,748 37,601 Bank Pekao S.A. (a) (b) CPA ® :18 – Global 50% 25,709 23,025 BPS Nevada, LLC (b) (f) Third Party 15% 23,645 23,036 State Farm (b) CPA ® :18 – Global 50% 16,952 17,603 Berry Global Inc. (b) WPC 50% 14,585 14,974 Apply Sørco AS (a) CPA ® :18 – Global 49% 12,655 12,528 Tesco Global Aruhazak Zrt. (a) (b) WPC 49% 11,145 10,807 Eroski Sociedad Cooperativa — Mallorca (a) WPC 30% 7,117 6,576 Konzum d.d., Zagreb (referred to as Agrokor) (a) (b) (g) CPA ® :18 – Global 20% 4,780 7,079 Dick’s Sporting Goods, Inc. (b) WPC 45% 4,057 4,367 372,314 222,342 All Other: Shelborne Operating Associates, LLC (referred to as Shelborne) (b) (f) (h) Third Party 33% 124,720 127,424 BG LLH, LLC (b) (f) Third Party 6% 37,401 36,756 IDL Wheel Tenant, LLC (i) Third Party N/A — 37,124 BPS Nevada, LLC - Preferred Equity (b) (j) Third Party N/A — 27,459 162,121 228,763 $ 534,435 $ 451,105 __________ (a) The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the applicable foreign currency. (b) This investment is a VIE. (c) In January 2017, our Hellweg 2 jointly owned equity investment repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $243.8 million , of which we contributed $90.3 million (amounts are based on the exchange rate of the euro as of the date of repayment). This contribution was accounted for as a capital contribution to equity investments in real estate. (d) This investment represents a tenancy-in-common interest, whereby the property is encumbered by debt for which we are jointly and severally liable. The co-obligor is WPC and the amount due under the arrangement was approximately $73.3 million at June 30, 2017 . Of this amount, $62.3 million represents the amount we agreed to pay and is included within the carrying value of this investment at June 30, 2017 . (e) On May 23, 2017, we entered into a joint venture investment to acquire a 70% interest in a real estate portfolio for a total cost of $141.5 million (dollar amount is based on the exchange rate of the euro on the date of acquisition), which excludes our portion of mortgage financing totaling $88.0 million . This was structured as a sale-leaseback transaction in which the tenant retained the remaining 30% interest in the real estate portfolio. The portfolio includes 18 retail stores and one warehouse collectively located in Lithuania, Latvia, and Estonia, which we will account for as an equity method investment as the noncontrolling shareholders have significant influence. All major decisions that significantly impact the economic performance of the entity require a unanimous decision vote from each of the shareholders. (f) This investment is reported using the hypothetical liquidation at book value model. (g) During both the three and six months ended June 30, 2017 , we recognized an impairment charge of $2.5 million related to our Agrokor equity method investment ( Note 8 ). (h) Represents a domestic ADC Arrangement. There was no unfunded balance on the loan related to this investment at June 30, 2017 . (i) As of December 31, 2016 , the carrying value included our investment in the Wheel Loan ( Note 5 ) that was considered to be a VIE and was reported using the hypothetical liquidation at book value model. The Wheel Loan was restructured on March 17, 2017 and, as a result, we have derecognized the equity investment and recorded this investment as a loan receivable, included in Other assets, net and will no longer consider this to be a VIE. (j) This investment represents a preferred equity interest, with a preferred rate of return of 12% . On May 19, 2017, we received the full repayment of our preferred equity interest totaling $27.0 million ; therefore, the preferred equity interest is now retired. Aggregate distributions from our interests in unconsolidated real estate investments were $12.4 million and $11.6 million for the three months ended June 30, 2017 and 2016 , respectively, and $33.7 million and $24.6 million , for the six months ended June 30, 2017 and 2016 , respectively. At June 30, 2017 and December 31, 2016 , the unamortized basis differences on our equity investments were $24.5 million and $19.1 million , respectively. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Intangible Assets And Liabilities [Abstract] | |
Intangible Assets and Liabilities | Intangible Assets and Liabilities In-place lease intangibles are included in In-place lease intangible assets in the consolidated financial statements. Above-market rent and below-market ground lease (as lessee) intangibles are included in Other intangible assets in the consolidated financial statements. Goodwill is included in Other assets in the consolidated financial statements. Below-market rent and above-market ground lease (as lessor) intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. In connection with our investment activity during the six months ended June 30, 2017 ( Note 4 ), we recorded an In-place lease intangible asset of $2.0 million , which has an expected life of 20 years. Intangible assets and liabilities are summarized as follows (in thousands): June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets In-place lease 1 - 53 $ 619,653 $ (190,188 ) $ 429,465 $ 620,149 $ (181,598 ) $ 438,551 Above-market rent 5 - 40 95,747 (28,155 ) 67,592 91,895 (24,599 ) 67,296 Below-market ground leases 55 - 94 12,428 (610 ) 11,818 12,023 (508 ) 11,515 727,828 (218,953 ) 508,875 724,067 (206,705 ) 517,362 Indefinite-Lived Intangible Assets Goodwill 304 — 304 304 — 304 Total intangible assets $ 728,132 $ (218,953 ) $ 509,179 $ 724,371 $ (206,705 ) $ 517,666 Finite-Lived Intangible Liabilities Below-market rent 7 - 53 $ (81,372 ) $ 19,879 $ (61,493 ) $ (120,725 ) $ 39,025 $ (81,700 ) Above-market ground lease 49 - 88 (1,145 ) 54 (1,091 ) (1,145 ) 46 (1,099 ) Total intangible liabilities $ (82,517 ) $ 19,933 $ (62,584 ) $ (121,870 ) $ 39,071 $ (82,799 ) Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Rental income; amortization of below-market ground lease and above-market ground lease intangibles is included in Property expenses; and amortization of in-place lease intangibles is included in Depreciation and amortization. Amortization of below- and above-market rent intangibles, including the effect of foreign currency translation, decreased Rental income by $0.3 million for the three months ended June 30, 2017 and increased Rental income by $0.1 million for the three months ended June 30, 2016 , and $18.5 million and $0.3 million for the six months ended June 30, 2017 and 2016 , respectively. The six months ended June 30, 2017 includes the impact of a below-market rent intangible liability write off of $15.7 million recognized in conjunction with the KBR lease modification ( Note 13 ) that occurred during the current year. Net amortization expense of all of our other net intangible assets totaled $10.5 million and $10.6 million for the three months ended June 30, 2017 and 2016 , respectively, and $23.3 million and $19.9 million for the six months ended June 30, 2017 and 2016 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts, and foreign currency collars; and Level 3, for securities and other derivative assets 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 along with their weighted-average ranges. Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of interest rate caps, interest rate swaps, foreign currency forward contracts, stock warrants, foreign currency collars, and a swaption ( Note 9 ). The interest rate caps, interest rate swaps, foreign currency forward contracts, foreign currency collars, and swaption were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The stock warrants were measured at fair value using internal valuation models that incorporated market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because they are not traded in an active market. Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of interest rate swaps and foreign currency collars ( Note 9 ). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. We did not have any transfers into or out of Level 1, Level 2, and Level 3 measurements during the six months ended June 30, 2017 and 2016 . Gains and losses (realized and unrealized) included in earnings are reported within Other income and (expenses) on our consolidated financial statements. Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): June 30, 2017 December 31, 2016 Level Carrying Value Fair Value Carrying Value Fair Value Mortgage debt, net (a) (b) 3 $ 1,921,426 $ 1,953,868 $ 2,022,250 $ 2,053,353 Loans receivable (b) 3 110,500 110,500 31,500 31,500 CMBS (c) 3 5,258 7,627 4,027 7,470 ___________ (a) The carrying value of Mortgage debt, net includes unamortized deferred financing costs of $8.9 million and $9.3 million at June 30, 2017 and December 31, 2016 , respectively. (b) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. (c) At June 30, 2017 and December 31, 2016 , we had three separate tranches of CMBS investments, which are scheduled to mature between November 2017 and February 2018. The carrying value of our CMBS is inclusive of impairment charges for the year ended December 31, 2016 , as well as accretion related to the estimated cash flows expected to be received. We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both June 30, 2017 and December 31, 2016 . Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. For investments in real estate held for use for which an impairment indicator is identified, we follow a two-step process to determine whether the investment is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the future undiscounted net cash flows that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. If this amount is less than the carrying value, the property’s asset group is considered to be not recoverable. We then measure the impairment charge as the excess of the carrying value of the property’s asset group over the estimated fair value of the property’s asset group, which is primarily determined using market information (such as recent comparable sales, broker quotes, or third-party appraisals). If relevant market information is not available or is not deemed appropriate, we perform a future net cash flow analysis, discounted for inherent risk associated with each investment. We determined that the significant inputs used to value these investments fall within Level 3 for fair value reporting. As a result of our assessments, we calculated impairment charges based on market conditions and assumptions. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change. The following table presents information about the assets for which we recorded an impairment charge that was measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Fair Value Measurements Total Impairment Charges Fair Value Measurements Total Impairment Charges Impairment Charges Equity investments in real estate $ 4,780 $ 2,510 $ — $ — $ 2,510 $ — Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Fair Value Measurements Total Impairment Charges Fair Value Measurements Total Impairment Charges Impairment Charges Real estate $ 4,719 $ 4,519 $ — $ — Equity investments in real estate 4,780 2,510 — — $ 7,029 $ — Impairment charges, and their related fair value measurements, recognized during the three and six months ended June 30, 2017 were as follows: Real Estate During the six months ended June 30, 2017 , we were notified by the tenant currently occupying a property that we own with an affiliate, located in Waldaschaff, Germany, that the tenant will not be renewing its lease. As a result of this information, and with our expectation that we will not be able to replace the tenant upon the lease expiration, we recognized an impairment charge of $4.5 million , which included $1.5 million attributed to a noncontrolling interest (amounts are based on the exchange rate of the euro at the date of impairment). The fair value of the property after the impairment charge approximated $4.7 million . The fair value measurement related to the impairment charge was determined by estimating discounted cash flows using a cash flow discount rate of 9.75% , which is considered a significant unobservable input. Significant increases or decreases to this input would result in a significant change in the fair value measurement. Equity Investments in Real Estate During the three and six months ended June 30, 2017 , we recognized an other-than-temporary impairment charge of $2.5 million on our Agrokor equity method investment ( Note 6 ), to reduce the carrying value of a property held by the jointly owned investment to its estimated fair value due to a decline in market conditions. The fair value measurement related to the impairment charge was determined by estimating discounted cash flows using three significant unobservable inputs, which are the cash flow discount rate, the residual discount rate, and the residual capitalization rate equal to 12.4% , 10.9% , and 10.4% , respectively. Significant increases or decreases to these inputs in isolation would result in a significant change in the fair value measurement. |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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 the Senior Credit Facility ( Note 10 ). Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, as well as changes in the value of our other investments due to changes in interest rates or other market factors. We own investments in Europe and Asia and are subject to risks associated with fluctuating foreign currency exchange rates. Derivative Financial Instruments When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts and we may be granted common stock warrants by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities. We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated, and that qualified, as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both June 30, 2017 and December 31, 2016 , no cash collateral had been posted or 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 Asset Derivatives Fair Value at Liability Derivatives Fair Value at Balance Sheet Location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Foreign currency forward contracts Other assets, net $ 25,554 $ 38,735 $ — $ — Interest rate caps Other assets, net 336 79 — — Interest rate swaps Other assets, net 47 54 — — Foreign currency collars Other assets, net — 522 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (4,978 ) (6,011 ) Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (499 ) (4 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 1,683 1,848 — — Foreign currency forward contracts Other assets, net 123 — — — Swaption Other assets, net 130 264 — — Interest rate swap Accounts payable, accrued expenses and other liabilities — — (135 ) (173 ) Total derivatives $ 27,873 $ 41,502 $ (5,612 ) $ (6,188 ) 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) (Effective Portion) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (8,729 ) $ 3,711 $ (12,478 ) $ (5,145 ) Foreign currency collars (945 ) 540 (1,002 ) 145 Interest rate caps (105 ) — (363 ) — Interest rate swaps 44 (127 ) 1,037 (2,589 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts 84 (676 ) (207 ) (1,261 ) Foreign currency collars (7 ) 7 (9 ) (8 ) Total $ (9,658 ) $ 3,455 $ (13,022 ) $ (8,858 ) Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss) into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified to Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Foreign currency forward contracts Other income and (expenses) $ 1,161 $ 1,298 $ 4,019 $ 3,678 Interest rate swaps Interest expense (603 ) (1,822 ) (1,309 ) (3,623 ) Total $ 558 $ (524 ) $ 2,710 $ 55 __________ (a) Excludes net losses of $0.4 million and net gains of $0.1 million recognized on unconsolidated jointly owned investments for the three and six months ended June 30, 2017, respectively. We did not recognize any substantial net gains or losses on unconsolidated jointly owned investments for both the three and six months ended June 30, 2016. (b) The effective portion of the change in fair value and the settlement of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) until the underlying investment is sold, at which time we reclassify the gain or loss to earnings. Amounts reported in Other comprehensive income (loss) related to interest rate swaps will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive income (loss) related to foreign currency derivative contracts will be reclassified to Other income and (expenses) when the hedged foreign currency contracts are settled. At June 30, 2017 , we estimated that an additional $1.8 million and $7.5 million will be reclassified as interest expense and as other expenses, 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) Recognized in Income on Derivatives Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Swaption Other income and (expenses) $ (86 ) $ (70 ) $ (134 ) $ (231 ) Stock warrants Other income and (expenses) 33 (99 ) (165 ) (99 ) Foreign currency forward contracts Other income and (expenses) (25 ) — 8 — Interest rate swap Interest expense 8 — 26 — Derivatives in Cash Flow Hedging Relationships Interest rate swaps (a) Interest expense 46 72 92 96 Foreign currency collar Interest expense (5 ) 4 (5 ) — Total $ (29 ) $ (93 ) $ (178 ) $ (234 ) __________ (a) Relates to the ineffective portion of the hedging relationship. See below for information regarding why we enter into our derivative instruments and concerning derivative instruments owned by unconsolidated investments, which are excluded from the tables above. Interest Rate Swaps, Caps, and Swaption We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners have obtained, and may in the future obtain, variable-rate, non-recourse mortgage loans and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements, interest rate cap agreements or swaptions 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 downward shifts in interest rates. A swaption gives us the right but not the obligation to enter into an interest rate swap, of which the terms and conditions are set on the trade date, on a specified date in the future. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swaps, caps, and swaption that our consolidated subsidiaries had outstanding at June 30, 2017 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Amount Fair Value at June 30, 2017 (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 13 137,984 USD $ (4,497 ) Interest rate swaps 5 59,274 EUR (434 ) Interest rate caps 4 139,281 EUR 289 Interest rate cap 1 6,394 GBP 24 Interest rate cap 1 75,000 USD 23 Not Designated as Hedging Instrument Interest rate swap 1 4,902 EUR (135 ) Swaption 1 13,230 USD 130 $ (4,600 ) __________ (a) Fair value amount is based on the exchange rate of the euro or British pound sterling at June 30, 2017 , as applicable. Foreign Currency Contracts We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling, the Japanese yen, and the Norwegian krone. We manage foreign currency exchange rate movements by generally placing our debt service obligation on an investment in the same currency as the tenant’s rental obligation to us. This reduces our overall exposure to the net cash flow from that investment. However, we are subject to foreign currency exchange rate movements to the extent that there is a difference in the timing and amount of the rental obligation and the debt service. Realized and unrealized gains and losses recognized in earnings related to foreign currency transactions are included in Other income and (expenses) in the consolidated financial statements. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency forward contracts and collars. A foreign currency forward contract is a commitment to deliver a certain amount of currency at a certain price on a specific date in the future. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. By entering into forward contracts and holding them to maturity, we are locked into a future currency exchange rate for the term of the contract. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency forward contracts and foreign currency collars have maturities of 77 months or less. The following table presents the foreign currency derivative contracts we had outstanding and their designations at June 30, 2017 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Amount Fair Value at June 30, 2017 Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 52 105,951 EUR $ 22,772 Foreign currency zero-cost collars 2 15,100 EUR (478 ) Foreign currency zero-cost collars 3 2,000 NOK (9 ) Not Designated as Hedging Instruments Foreign currency forward contracts 11 7,959 NOK 123 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 3 707,716 JPY 2,695 Foreign currency forward contracts 3 5,549 NOK 86 Foreign currency zero-cost collar 1 2,500 NOK (11 ) $ 25,178 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, 2017 . At June 30, 2017 , our total credit exposure was $24.8 million and the maximum exposure to any single counterparty was $9.7 million . Some of the agreements 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, 2017 , we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives that were in a net liability position was $5.8 million and $6.7 million at June 30, 2017 and December 31, 2016 , respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at June 30, 2017 or December 31, 2016 , we could have been required to settle our obligations under these agreements at their aggregate termination value of $6.1 million and $7.3 million , respectively. Portfolio Concentration Risk Concentrations of credit risk arise when a number of tenants are engaged in similar business activities or have similar economic risks or conditions that could cause them to default on their lease obligations to us. We regularly monitor our portfolio to assess potential concentrations of credit risk. See Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Portfolio Overview for more information about our portfolio concentration risk. For the six months ended June 30, 2017 , our KBR Inc. tenant contributed 15.4% of our total revenues, which included $15.7 million for the six months ended June 30, 2017 as a result of a write-off of a below-market lease intangible liability that increased rental income ( Note 13 ). |
Debt
Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Debt, Net At June 30, 2017 , our mortgage notes payable bore interest at fixed annual rates ranging from 1.9% to 7.4% and variable contractual annual rates ranging from 1.3% to 6.0% , with maturity dates ranging from 2017 to 2031 . Financing Activity During 2017 During the six months ended June 30, 2017 , we refinanced two non-recourse mortgage loans totaling $157.7 million with new loans of $180.0 million that have a weighted-average interest rate of 2.8% and term of three years. During the six months ended June 30, 2017 , we repaid seven non-recourse mortgage loans totaling $147.0 million , all of which were scheduled to mature in 2017 (amount is based on the exchange rate of the euro as of the date of repayment, as applicable). Of the $147.0 million , $60.0 million pertained to the non-recourse mortgage loan that was paid down in connection with the I-drive Property disposition ( Note 4 , Note 13 ), on which we recognized a loss on extinguishment of debt of $1.3 million . In addition, in connection with our disposition of a property located in Pordenone, Italy, which was part of a larger portfolio of properties located throughout Italy leased to a single tenant, we repaid a portion of the principal balance of the mortgage loan on that portfolio for a total of $9.3 million (amount is based on the exchange rate of the euro as of the date of repayment). In March 2017, we completed the sale of the KBR II property ( Note 13 ), which had a non-recourse mortgage loan of $31.2 million at the time of sale. This mortgage loan, which has an interest rate 4.9% and is scheduled to mature in January 2024, has since been recollateralized with two of our existing net-lease properties. As a result of the swapping of the collateral of this loan, this debt is now considered to be a recourse mortgage loan to us in the event of a default. Senior Credit Facility On August 26, 2015, we entered into a Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and a syndicate of other lenders, which we refer to herein as the Credit Agreement. The Credit Agreement was amended on March 31, 2016 to clarify the Restricted Payments covenant (see below); no other terms were changed. The Credit Agreement provides for a $200.0 million senior unsecured revolving credit facility, or the Revolver, and a $50.0 million delayed-draw term loan facility, or the Term Loan. We refer to the Revolver and the Term Loan together as the Senior Credit Facility, which has a maximum aggregate principal amount of $250.0 million and, subject to lender approval, an accordion feature of $250.0 million . The Senior Credit Facility is scheduled to mature on August 26, 2018 , and may be extended by us for two 12-month periods. The Senior Credit Facility provides for an annual interest rate of either (i) the Eurocurrency Rate or (ii) the Base Rate, in each case plus the Applicable Rate (each as defined in the Credit Agreement). With respect to the Revolver, the Applicable Rate on Eurocurrency loans and letters of credit ranges from 1.50% to 2.25% (based on London Interbank Offered Rate, or LIBOR) and the Applicable Rate on Base Rate loans ranges from 0.50% to 1.25% (as defined in the Credit Agreement), depending on our leverage ratio. With respect to the Term Loan, the Applicable Rate on Eurocurrency loans and letters of credit ranges from 1.45% to 2.20% (based on LIBOR) and the Applicable Rate on Base Rate loans ranges from 0.45% to 1.20% (as defined in the Credit Agreement), depending on our leverage ratio. In addition, we pay a fee of either 0.15% or 0.30% on the unused portion of the Senior Credit Facility. If usage of the Senior Credit Facility is equal to or greater than 50% of the Aggregate Commitments, the Unused Fee Rate will be 0.15% , and if usage of the Senior Credit Facility is less than 50% of the Aggregate Commitments, the Unused Fee Rate will be 0.30% . In connection with the transaction, we incurred costs of $1.9 million , which are being amortized to interest expense over the remaining term of the Senior Credit Facility. The following table presents a summary of our Senior Credit Facility (dollars in thousands): Interest Rate at June 30, 2017 Outstanding Balance at Senior Credit Facility, net June 30, 2017 December 31, 2016 Term Loan (a) LIBOR + 1.45% $ 49,849 $ 49,751 Revolver: Revolver - borrowing in euros (b) LIBOR + 1.50% 27,366 — $ 77,215 $ 49,751 __________ (a) Includes unamortized deferred financing costs and discounts. (b) Amount is based on the exchange rate of the euro at June 30, 2017 . On September 30, 2016, we exercised the delayed draw option on our Term Loan and borrowed $50.0 million . The Term Loan bears interest at LIBOR + 1.55% and is scheduled to mature on August 26, 2018 , unless extended pursuant to its terms. The Revolver and Term Loan are used for our working capital needs and for new investments, as well as for general corporate purposes. During the six months ended June 30, 2017 , we drew down $67.3 million from our Senior Credit Facility (amount is based on the exchange rate of the euro on the date of each draw), of which we have since repaid $40.7 million . We are required to ensure that the total Restricted Payments (as defined in the amended Credit Agreement) in an aggregate amount in any fiscal year does not exceed the greater of 95% of MFFO and the amount of Restricted Payments required in order for us to (i) maintain our REIT status and (ii) avoid the payment of federal or state income or excise tax. Restricted Payments include quarterly dividends and the total amount of shares repurchased by us, if any, in excess of $100.0 million per year. In addition to placing limitations on dividend distributions and share repurchases, the Credit Agreement also stipulates certain customary financial covenants. We were in compliance with all such covenants at June 30, 2017 . Scheduled Debt Principal Payments Scheduled debt principal payments for the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter through 2031 are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ 104,072 2018 (a) 168,386 2019 72,638 2020 421,860 2021 443,147 Thereafter through 2031 803,149 Total principal payments 2,013,252 Deferred financing costs (9,063 ) Unamortized discount, net (5,548 ) Total $ 1,998,641 __________ (a) Includes the $50.0 million Term Loan and $27.4 million of borrowings through the Revolver outstanding at June 30, 2017 under our Senior Credit Facility, which is scheduled to mature on August 26, 2018, unless extended pursuant to its terms. Certain amounts in the table above are based on the applicable foreign currency exchange rate at June 30, 2017 . The carrying value of our Debt, net increased by $47.7 million from December 31, 2016 to June 30, 2017 due the weakening of the U.S. dollar relative to foreign currencies, particularly the euro, during the same period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At June 30, 2017 , 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. At June 30, 2017 , we did not have any substantial unfunded construction commitments. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Equity | Equity 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, 2017 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 26,996 $ (18 ) $ (177,827 ) $ (150,849 ) Other comprehensive income before reclassifications (9,581 ) 1 50,309 40,729 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 603 — — 603 Other income and (expenses) (1,161 ) — — (1,161 ) Total (558 ) — — (558 ) Net current-period Other comprehensive income (10,139 ) 1 50,309 40,171 Net current-period Other comprehensive income attributable to noncontrolling interests — — (1,122 ) (1,122 ) Ending balance $ 16,857 $ (17 ) $ (128,640 ) $ (111,800 ) Three Months Ended June 30, 2016 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 16,456 $ (70 ) $ (137,511 ) $ (121,125 ) Other comprehensive loss before reclassifications 3,615 7 (19,592 ) (15,970 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,822 — — 1,822 Other income and (expenses) (1,298 ) — — (1,298 ) Total 524 — — 524 Net current-period Other comprehensive loss 4,139 7 (19,592 ) (15,446 ) Net current-period Other comprehensive loss attributable to noncontrolling interests — — 470 470 Ending balance $ 20,595 $ (63 ) $ (156,633 ) $ (136,101 ) Six Months Ended June 30, 2017 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 29,549 $ (48 ) $ (186,177 ) $ (156,676 ) Other comprehensive income before reclassifications (9,982 ) 31 58,918 48,967 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,309 — — 1,309 Other income and (expenses) (4,019 ) — — (4,019 ) Total (2,710 ) — — (2,710 ) Net current-period Other comprehensive income (12,692 ) 31 58,918 46,257 Net current-period Other comprehensive income attributable to noncontrolling interests — — (1,381 ) (1,381 ) Ending balance $ 16,857 $ (17 ) $ (128,640 ) $ (111,800 ) Six Months Ended June 30, 2016 Gains and Losses on Derivative Instruments Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 28,200 $ (77 ) $ (167,928 ) $ (139,805 ) Other comprehensive income before reclassifications (7,550 ) 14 11,736 4,200 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 3,623 — — 3,623 Other income and (expenses) (3,678 ) — — (3,678 ) Total (55 ) — — (55 ) Net current-period Other comprehensive income (7,605 ) 14 11,736 4,145 Net current-period Other comprehensive income attributable to noncontrolling interests — — (441 ) (441 ) Ending balance $ 20,595 $ (63 ) $ (156,633 ) $ (136,101 ) Distributions During the second quarter of 2017 , our board of directors declared a quarterly distribution of $0.1625 per share, which was paid on July 14, 2017 to stockholders of record on June 30, 2017 , in the amount of $56.4 million . Distributions are declared at the discretion of our board of directors and are not guaranteed. During the six months ended June 30, 2017 , our board of directors declared distributions in the aggregate amount of $112.5 million , which equates to $0.3250 per share. |
Property Dispositions
Property Dispositions | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions | Property Dispositions From time to time, we may decide to sell a property. We have an active capital recycling program, with a goal of extending the average lease term through reinvestment, improving portfolio credit quality through dispositions and acquisitions of assets, increasing the asset criticality factor in our portfolio, and/or executing strategic dispositions of assets. We may decide to dispose of a property due to vacancy, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. Property Dispositions The results of operations for properties that have been sold or classified as held for sale are included in the consolidated financial statements and are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 898 $ 10,158 $ 7,904 $ 21,931 Expenses (121 ) (7,043 ) (4,258 ) (15,798 ) Gain on sale of real estate, net of tax 1,171 25,017 2,805 50,415 Loss on extinguishment of debt (44 ) (5,090 ) (1,364 ) (7,590 ) Benefit from (provision for) income taxes 8 (18 ) (2 ) (23 ) Equity in losses of equity method investments in real estate — (2,318 ) (688 ) (3,490 ) Income from properties sold or classified as held for sale, net of income taxes $ 1,912 $ 20,706 $ 4,397 $ 45,445 2017 Dispositions During the three months ended June 30, 2017 , we sold three properties for total proceeds of $14.6 million , net of selling costs, and recorded an aggregate gain on sale of $1.2 million (amounts are based on the euro exchange rate on the applicable date of disposition), which was recorded under the full accrual method. In March 2017, we sold one of our net-lease properties to the developer that constructed the I-drive Property for net proceeds of $23.5 million , inclusive of $34.0 million of financing provided by us to the developer in the form of a mezzanine loan. This sale was accounted for under the cost recovery method. As a result, we recorded a deferred gain on sale of $2.1 million , which will be recognized into income upon recovery of the cost of the property ( Note 4 , Note 5 ). The developer repaid the $60.0 million non-recourse mortgage loan encumbering the I-drive Property at closing ( Note 10 ). In addition, in connection with the I-drive Wheel restructuring, we also recorded a deferred gain of $16.4 million , which will be recognized into income upon recovery of the cost of the Wheel Loan ( Note 5 ). In August 2016, we simultaneously entered into two agreements with one of our tenants, KBR, Inc., to amend the lease at one property and terminate the lease at another property, both located in Houston, Texas. The lease modification and lease termination were contingent upon one another and became effective upon disposing of one net-lease property on March 13, 2017, which was previously classified as held for sale as of December 31, 2016. Upon disposition, we received proceeds of $14.1 million , net of closing costs, and recognized a gain on sale of $1.6 million , which was recorded under the full accrual method. In addition, as a result of the aforementioned lease modification, contractual rents were renegotiated to be at market and the existing below-market rent lease liability of $15.7 million was written off and recognized in Rental income during the six months ended June 30, 2017 ( Note 7 ). In addition, as a result of the termination of the lease noted above, we accelerated the below-market lease intangible liabilities of $3.3 million that were also recognized in Rental income during the six months ended June 30, 2017 . 2016 Dispositions During the three months ended June 30, 2016, we sold nine self-storage properties for total proceeds of $61.3 million , net of closing costs, and used the proceeds from the sale to repay a non-recourse mortgage loan encumbering the properties with an outstanding principal balance of $27.9 million . In connection with this transaction, we recognized an aggregate gain on sale of $25.0 million and loss on extinguishment of debt of $5.1 million . During the six months ended June 30, 2016, we sold 12 self-storage properties for total proceeds of $107.7 million , net of closing costs, and used the proceeds from the sales to repay non-recourse mortgage loans encumbering the properties with outstanding principal balances totaling $42.9 million . In connection with this transaction, we recognized an aggregate gain on the sale of $50.4 million , and loss on extinguishment of debt of $7.6 million . |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We operate in two reportable business segments: Net Lease and Self Storage. Our Net Lease segment includes our domestic and foreign investments in net-leased properties, whether they are accounted for as operating or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. In addition, we have investments in loans receivable, CMBS, one hotel, and other properties, which are included in our All Other category . The following tables present a summary of comparative results and assets for these business segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net Lease Revenues (a) (b) $ 94,331 $ 94,566 $ 206,854 $ 187,971 Operating expenses (c) (d) (37,867 ) (35,299 ) (79,175 ) (71,517 ) Interest expense (18,698 ) (22,148 ) (39,349 ) (44,281 ) Other income and (expenses), excluding interest expense (e) 1,736 2,976 5,195 5,732 (Provision for) benefit from income taxes (316 ) (2,128 ) 298 (3,903 ) Gain on sale of real estate, net of tax 1,171 — 2,910 — Net income attributable to noncontrolling interests (3,948 ) (3,524 ) (6,273 ) (7,050 ) Net income attributable to CPA ® :17 – Global $ 36,409 $ 34,443 $ 90,460 $ 66,952 Self-Storage Revenues $ 9,031 $ 13,017 $ 17,773 $ 25,078 Operating expenses (6,340 ) (13,053 ) (13,539 ) (20,915 ) Interest expense (1,974 ) (2,643 ) (3,977 ) (4,535 ) Other income and (expenses), excluding interest expense (f) (g) (258 ) 44,828 (260 ) 41,896 Provision for income taxes (30 ) (54 ) (62 ) (117 ) Gain on sale of real estate, net of tax — 25,017 — 50,415 Net income (loss) attributable to CPA ® :17 – Global $ 429 $ 67,112 $ (65 ) $ 91,822 All Other Revenues $ 3,151 $ 1,602 $ 4,891 $ 3,362 Operating expenses (8 ) (17 ) (46 ) (52 ) Interest expense — (3 ) — (6 ) Other income and (expenses), excluding interest expense 187 (2,302 ) (2,221 ) (2,397 ) Provision for income taxes (374 ) (4 ) (1,024 ) (8 ) Net income (loss) attributable to CPA ® :17 – Global $ 2,956 $ (724 ) $ 1,600 $ 899 Corporate Unallocated Corporate Overhead (h) $ (2,017 ) $ (13,114 ) $ (9,397 ) $ (19,865 ) Net income attributable to noncontrolling interests – Available Cash Distributions $ (6,971 ) $ (5,859 ) $ (13,781 ) $ (12,527 ) Total Company Revenues $ 106,513 $ 109,185 $ 229,518 $ 216,411 Operating expenses (55,581 ) (60,037 ) (115,196 ) (116,242 ) Interest expense (21,453 ) (25,368 ) (44,843 ) (49,979 ) Other income and (expenses), excluding interest expense 12,190 44,738 18,218 50,450 Provision for income taxes (1,115 ) (2,294 ) (1,736 ) (4,197 ) Gain on sale of real estate, net of tax 1,171 25,017 2,910 50,415 Net income attributable to noncontrolling interests (10,919 ) (9,383 ) (20,054 ) (19,577 ) Net income attributable to CPA ® :17 – Global $ 30,806 $ 81,858 $ 68,817 $ 127,281 Total Assets at June 30, 2017 December 31, 2016 Net Lease (i) $ 3,964,054 $ 3,905,402 All Other (j) 280,228 266,231 Self-Storage 246,381 252,195 Corporate 147,943 275,095 Total Company $ 4,638,606 $ 4,698,923 ___________ (a) Includes a $15.7 million write off and a $3.3 million acceleration of a below-market rent lease liabilities, pertaining to our KBR Inc. properties that were recognized in Rental income during the six months ended June 30, 2017 ( Note 13 ). (b) We recognized straight-line rent adjustments of $3.9 million and $4.2 million during the three months ended June 30, 2017 and 2016 , respectively, and $7.2 million and $8.8 million during the six months ended June 30, 2017 and 2016 , respectively, which increased Rental income within our consolidated financial statements for each period. (c) Includes an impairment charge of $4.5 million related to a property located in Waldaschaff, Germany ( Note 8 ) incurred during the six months ended June 30, 2017 . (d) In April 2016, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts our Agrokor tenant, which is currently experiencing financial distress and recently received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $3.2 million and $4.8 million during the three and six months ended June 30, 2017 , respectively. In addition, we recorded an impairment on our equity method investment related to this tenant of $2.5 million during both the three and six months ended June 30, 2017 , which was included in equity in earnings on our consolidated financial statements. (e) Includes loss on extinguishment of debt of $0.1 million and $1.7 million during the three and six months ended June 30, 2017 , respectively. (f) Includes a loss on extinguishment of debt of $0.3 million during both the three and six months ended June 30, 2017, and $5.1 million and $7.6 million during the three and six months ended June 30, 2016 , respectively. (g) We recognized a Gain on change in control of interests of $49.9 million during both the three and six months ended June 30, 2016 . This gain was recorded in conjunction with the change in control resulting from the acquisition of a controlling interest in a self-storage investment portfolio that we previously accounted for under the equity investment method. We recorded a non-cash gain on change in control of interests, which was the difference between the carrying value of $15.1 million and the fair value of $64.9 million from our previously held equity interest in April 2016. (h) Included in unallocated corporate overhead are asset management fees and general and administrative expenses, as well as interest expense and other charges related to our Senior Credit Facility. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance. (i) Includes the impact of the I-drive Property disposition ( Note 4 , Note 6 , Note 13 ), the sale of a property classified as Assets held for sale as of December 31, 2016 , and the sale of three other net-leased properties ( Note 13 ). (j) Includes the impact of the I-drive Wheel restructuring ( Note 4 , Note 5 , Note 13 ). |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event [Shelborne restructuring placeholder] |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation — Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries and our tenancy-in-common interest, as described below. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. |
Reclassification | Reclassifications — Certain prior period amounts have been reclassified to conform to the current period presentation. |
Recent Accounting Requirements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will apply to reimbursed tenant costs and revenues generated from our operating properties. We will adopt this guidance for our annual and interim periods beginning January 1, 2018 using one of two methods: retrospective restatement for each reporting period presented at the time of adoption, or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. We have not decided which method of adoption we will use. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 outlines a new model for accounting by lessees, whereby their rights and obligations under substantially all leases, existing and new, would be capitalized and recorded on the balance sheet. For lessors, however, the accounting remains largely unchanged from the current model, with the distinction between operating and financing leases retained, but updated to align with certain changes to the lessee model and the new revenue recognition standard. The new standard also replaces existing sale-leaseback guidance with a new model applicable to both lessees and lessors. Additionally, the new standard requires extensive quantitative and qualitative disclosures. ASU 2016-02 is effective for GAAP public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application will be permitted for all entities. The new standard must be adopted using a modified retrospective transition of the new guidance and provides for certain practical expedients. Transition will require application of the new model at the beginning of the earliest comparative period presented. The ASU is expected to impact our consolidated financial statements as we have certain operating office and land lease arrangements for which we are the lessee. We are evaluating the impact of the new standard and have not yet determined if it will have a material impact on our business or our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses. ASU 2016-13 introduces a new model for estimating credit losses based on current expected credit losses for certain types of financial instruments, including loans receivable, held-to-maturity debt securities, and net investments in direct financing leases, amongst other financial instruments. ASU 2016-13 also modifies the impairment model for available-for-sale debt securities and expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for losses. ASU 2016-13 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 intends to reduce diversity in practice for certain cash flow classifications, including, but not limited to (i) debt prepayment or debt extinguishment costs, (ii) contingent consideration payments made after a business combination, (iii) proceeds from the settlement of insurance claims, and (iv) distributions received from equity method investees. ASU 2016-15 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early application of the guidance permitted. We are in the process of evaluating the impact of adopting ASU 2016-15 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In October 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . ASU 2016-17 changes how a reporting entity that is a decision maker should consider indirect interests in a VIE held through an entity under common control. If a decision maker must evaluate whether it is the primary beneficiary of a VIE, it will only need to consider its proportionate indirect interest in the VIE held through a common control party. ASU 2016-17 amends ASU 2015-02, which we adopted on January 1, 2016, and which currently directs the decision maker to treat the common control party’s interest in the VIE as if the decision maker held the interest itself. ASU 2016-17 is effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We adopted ASU 2016-17 as of January 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . ASU 2016-18 intends to reduce diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU 2016-18 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2016-18 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 intends to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Under the current implementation guidance in Topic 805, there are three elements of a business: inputs, processes, and outputs. While an integrated set of assets and activities, collectively referred to as a “set,” that is a business usually has outputs, outputs are not required to be present. ASU 2017-01 provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. ASU 2017-01 will be effective for public business entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. We elected to early adopt ASU 2017-01 on January 1, 2017 on a prospective basis. While our acquisitions have historically been classified as either business combinations or asset acquisitions, certain acquisitions that were classified as business combinations by us likely would have been considered asset acquisitions under the new standard. As a result, transaction costs are more likely to be capitalized since we expect most of our future acquisitions to be classified as asset acquisitions under this new standard. In addition, goodwill that was previously allocated to businesses that were sold or held for sale will no longer be allocated and written off upon sale if future sales were deemed to be sales of assets and not businesses. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 removes step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. ASU 2017-04 will be effective for public business entities in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years in which a goodwill impairment test is performed, with early adoption permitted. We adopted ASU 2017-04 as of April 1, 2017 on a prospective basis. The adoption of this standard did not have a material impact on our consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) . ASU 2017-05 clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term “in substance nonfinancial asset,” in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. If substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. This amendment also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent company may transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. ASU 2017-05 is effective for periods beginning after December 15, 2017, with early application permitted for fiscal years beginning after December 15, 2016. We are currently evaluating the impact of ASU 2017-05 on our consolidated financial statements. |
Equity Method Investments | We own equity interests in net-leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly owned with affiliates. We account for these investments under the equity method of accounting. Earnings for each investment are recognized in accordance with each respective investment agreement and, where applicable, based upon an allocation of the investment’s net assets at book value as if the investment were hypothetically liquidated at the end of each reporting period. As required by current authoritative accounting guidance, we periodically compare an investment’s carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary. Additionally, we provide funding to developers for ADC Arrangements, under which we have provided loans to third-party developers of real estate projects, which we account for as equity investments as the characteristics of the arrangement with the third-party developers are more similar to a jointly owned investment or partnership rather than a loan. |
Intangible Assets and Liabilities | Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Rental income; amortization of below-market ground lease and above-market ground lease intangibles is included in Property expenses; and amortization of in-place lease intangibles is included in Depreciation and amortization. Amortization of below- and above-market rent intangibles, including the effect of foreign currency translation, decreased Rental income by $0.3 million for the three months ended June 30, 2017 and increased Rental income by $0.1 million for the three months ended June 30, 2016 , and $18.5 million and $0.3 million for the six months ended June 30, 2017 and 2016 , respectively. The six months ended June 30, 2017 includes the impact of a below-market rent intangible liability write off of $15.7 million recognized in conjunction with the KBR lease modification ( Note 13 ) that occurred during the current year. Net amortization expense of all of our other net intangible assets totaled $10.5 million and $10.6 million for the three months ended June 30, 2017 and 2016 , respectively, and $23.3 million and $19.9 million for the six months ended June 30, 2017 and 2016 , respectively. |
Fair Value of Financial Instruments | The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts, and foreign currency collars; and Level 3, for securities and other derivative assets 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. Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of interest rate caps, interest rate swaps, foreign currency forward contracts, stock warrants, foreign currency collars, and a swaption ( Note 9 ). The interest rate caps, interest rate swaps, foreign currency forward contracts, foreign currency collars, and swaption were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The stock warrants were measured at fair value using internal valuation models that incorporated market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because they are not traded in an active market. Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of interest rate swaps and foreign currency collars ( Note 9 ). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. |
Derivatives | We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative designated, and that qualified, as a cash flow hedge, the effective portion of the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. For a derivative designated, and that qualified, as a net investment hedge, the effective portion of the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both June 30, 2017 and December 31, 2016 , no cash collateral had been posted or received for any of our derivative positions. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of selected financial data of the consolidated VIEs, included in the consolidated balance sheets (in thousands): As Revised (a) (b) As Revised (a) (c) As Revised (a) (d) June 30, 2017 March 31, 2017 December 31, 2016 December 31, 2015 Real estate $ 107,311 $ 104,488 $ 225,347 $ 225,270 Operating real estate — — 11,388 — Net investments in direct financing leases 311,362 315,582 315,251 303,112 In-place lease intangible assets 8,342 7,949 8,795 7,909 Accumulated depreciation and amortization (23,442 ) (21,631 ) (25,000 ) (19,049 ) Other assets, net 40,857 41,161 52,565 54,888 Total assets 447,325 450,876 590,526 578,989 Mortgage debt, net $ 128,733 $ 129,414 $ 192,839 $ 187,639 Accounts payable, accrued expenses and other liabilities 6,751 6,922 11,187 12,352 Deferred income taxes 16,319 16,344 15,687 10,675 Total liabilities 152,175 153,051 220,077 211,060 ___________ (a) In the second quarter of 2017, we reclassified certain line items in our consolidated balance sheets. As a result, net investments in real estate in the prior periods has been revised to the current period presentation. (b) The consolidated financial statements as of and for the three months ended March 31, 2017 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of March 31, 2017 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of March 31, 2017 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $22.4 million ; (iv) other assets, net by $13.2 million ; (v) total assets by $123.7 million ; (vi) mortgage debt, net by $72.5 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.2 million ; and (viii) total liabilities by $76.0 million . (c) The consolidated financial statements as of and for the year ended December 31, 2016 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of December 31, 2016 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of December 31, 2016 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $21.6 million ; (iv) other assets, net by $13.0 million ; (v) total assets by $124.4 million ; (vi) mortgage debt, net by $73.0 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.3 million ; and (viii) total liabilities by $76.6 million . (d) The consolidated financial statements as of and for the year ended December 31, 2015 accurately reflect the correct accounting treatment for VIEs. In the second quarter of 2017, we identified an error in the notes to the consolidated financial statements as of December 31, 2015 related to the VIE tabular disclosure above in which we improperly classified four consolidated entities as VIEs. We concluded that the disclosure error to the table above was not material to the notes to the consolidated financial statements. As such, we have corrected the information as of December 31, 2015 in the table above to correctly exclude these four entities, which reduced (i) real estate by $111.1 million ; (ii) in-place lease intangible assets by $21.8 million ; (iii) accumulated depreciation and amortization by $18.2 million ; (iv) other assets, net by $11.8 million ; (v) total assets by $126.5 million ; (vi) mortgage debt, net by $75.2 million ; (vii) accounts payable, accrued expenses and other liabilities by $3.3 million ; and (viii) total liabilities by $78.8 million . |
Agreements and Transactions w27
Agreements and Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables present a summary of fees we paid, expenses we reimbursed, and distributions we made to our Advisor and other affiliates in accordance with the relevant agreements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Amounts Included in the Consolidated Statements of Income Asset management fees $ 7,339 $ 7,484 $ 14,664 $ 14,966 Available Cash Distributions 6,971 5,859 13,781 12,527 Personnel and overhead reimbursements 2,310 2,364 4,601 5,025 Interest expense on deferred acquisition fees and loan from affiliate 68 66 132 129 Director compensation 53 53 106 105 Acquisition expenses — 218 — 1,441 $ 16,741 $ 16,044 $ 33,284 $ 34,193 Acquisition Fees Capitalized Current acquisition fees $ 3,537 $ 543 $ 3,823 $ 557 Deferred acquisition fees 2,829 434 3,058 445 Personnel and overhead reimbursements 379 40 486 101 $ 6,745 $ 1,017 $ 7,367 $ 1,103 The following table presents a summary of amounts included in Due to affiliates in the consolidated financial statements (in thousands): June 30, 2017 December 31, 2016 Due to Affiliates Deferred acquisition fees, including interest $ 7,346 $ 6,584 Asset management fees payable 2,463 2,250 Reimbursable costs 2,214 2,299 Accounts payable 191 360 Current acquisition fees 14 230 $ 12,228 $ 11,723 |
Real Estate, Operating Real E28
Real Estate, Operating Real Estate, and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties | Real estate, which consists of land and buildings leased to others, at cost, and which are subject to operating leases, is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Land $ 555,590 $ 563,050 Buildings and improvements 2,157,518 2,182,374 Less: Accumulated depreciation (315,987 ) (280,657 ) $ 2,397,121 $ 2,464,767 Operating real estate, which consists of our wholly owned domestic self-storage operations, at cost, is summarized as follows (in thousands): June 30, 2017 December 31, 2016 Land $ 55,645 $ 55,645 Buildings and improvements 204,071 203,326 Less: Accumulated depreciation (22,217 ) (18,876 ) $ 237,499 $ 240,095 |
Disclosure of Long Lived Assets Held-for-sale | Below is a summary of our properties held for sale (in thousands): June 30, 2017 December 31, 2016 Real estate, net $ — $ 14,850 Assets held for sale $ — $ 14,850 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Financing Receivable Credit Quality Indicators | A summary of our finance receivables by internal credit quality rating is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 1 — — $ — $ — 2 2 2 62,365 61,949 3 9 9 413,949 412,075 4 6 5 108,094 65,868 5 2 — 32,905 — $ 617,313 $ 539,892 |
Equity Investments in Real Es30
Equity Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table sets forth our ownership interests in our equity method investments in real estate and their respective carrying values, along with those ADC Arrangements that are recorded as equity investments (dollars in thousands): Ownership Interest at Carrying Value at Lessee/Equity Investee Co-owner June 30, 2017 June 30, 2017 December 31, 2016 Net Lease: Hellweg Die Profi-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) (a) (b) (c) WPC 37% $ 104,637 $ 10,125 Jumbo Logistiek Vastgoed B.V. (a) (d) WPC 85% 55,215 54,621 Kesko Senukai (a) (e) Third Party 70% 55,069 — U-Haul Moving Partners, Inc. and Mercury Partners, LP (b) WPC 12% 36,748 37,601 Bank Pekao S.A. (a) (b) CPA ® :18 – Global 50% 25,709 23,025 BPS Nevada, LLC (b) (f) Third Party 15% 23,645 23,036 State Farm (b) CPA ® :18 – Global 50% 16,952 17,603 Berry Global Inc. (b) WPC 50% 14,585 14,974 Apply Sørco AS (a) CPA ® :18 – Global 49% 12,655 12,528 Tesco Global Aruhazak Zrt. (a) (b) WPC 49% 11,145 10,807 Eroski Sociedad Cooperativa — Mallorca (a) WPC 30% 7,117 6,576 Konzum d.d., Zagreb (referred to as Agrokor) (a) (b) (g) CPA ® :18 – Global 20% 4,780 7,079 Dick’s Sporting Goods, Inc. (b) WPC 45% 4,057 4,367 372,314 222,342 All Other: Shelborne Operating Associates, LLC (referred to as Shelborne) (b) (f) (h) Third Party 33% 124,720 127,424 BG LLH, LLC (b) (f) Third Party 6% 37,401 36,756 IDL Wheel Tenant, LLC (i) Third Party N/A — 37,124 BPS Nevada, LLC - Preferred Equity (b) (j) Third Party N/A — 27,459 162,121 228,763 $ 534,435 $ 451,105 __________ (a) The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the applicable foreign currency. (b) This investment is a VIE. (c) In January 2017, our Hellweg 2 jointly owned equity investment repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $243.8 million , of which we contributed $90.3 million (amounts are based on the exchange rate of the euro as of the date of repayment). This contribution was accounted for as a capital contribution to equity investments in real estate. (d) This investment represents a tenancy-in-common interest, whereby the property is encumbered by debt for which we are jointly and severally liable. The co-obligor is WPC and the amount due under the arrangement was approximately $73.3 million at June 30, 2017 . Of this amount, $62.3 million represents the amount we agreed to pay and is included within the carrying value of this investment at June 30, 2017 . (e) On May 23, 2017, we entered into a joint venture investment to acquire a 70% interest in a real estate portfolio for a total cost of $141.5 million (dollar amount is based on the exchange rate of the euro on the date of acquisition), which excludes our portion of mortgage financing totaling $88.0 million . This was structured as a sale-leaseback transaction in which the tenant retained the remaining 30% interest in the real estate portfolio. The portfolio includes 18 retail stores and one warehouse collectively located in Lithuania, Latvia, and Estonia, which we will account for as an equity method investment as the noncontrolling shareholders have significant influence. All major decisions that significantly impact the economic performance of the entity require a unanimous decision vote from each of the shareholders. (f) This investment is reported using the hypothetical liquidation at book value model. (g) During both the three and six months ended June 30, 2017 , we recognized an impairment charge of $2.5 million related to our Agrokor equity method investment ( Note 8 ). (h) Represents a domestic ADC Arrangement. There was no unfunded balance on the loan related to this investment at June 30, 2017 . (i) As of December 31, 2016 , the carrying value included our investment in the Wheel Loan ( Note 5 ) that was considered to be a VIE and was reported using the hypothetical liquidation at book value model. The Wheel Loan was restructured on March 17, 2017 and, as a result, we have derecognized the equity investment and recorded this investment as a loan receivable, included in Other assets, net and will no longer consider this to be a VIE. (j) This investment represents a preferred equity interest, with a preferred rate of return of 12% . On May 19, 2017, we received the full repayment of our preferred equity interest totaling $27.0 million ; therefore, the preferred equity interest is now retired. The following table presents Equity in earnings of equity method investments in real estate, which represents our proportionate share of the income or losses of these investments, as well as amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Equity Earnings from Equity Investments: Net Lease (a) $ 2,475 $ 4,761 $ 7,430 $ 8,313 All Other 460 (2,124 ) (1,648 ) (1,862 ) Self Storage — — — (394 ) 2,935 2,637 5,782 6,057 Amortization of Basis Differences on Equity Investments: Net Lease (562 ) (820 ) (1,125 ) (1,640 ) All Other (103 ) (237 ) (402 ) (626 ) Self Storage — — — (39 ) (665 ) (1,057 ) (1,527 ) (2,305 ) Equity in earnings of equity method investments in real estate $ 2,270 $ 1,580 $ 4,255 $ 3,752 __________ (a) For both the three and six months ended June 30, 2017 , amounts include impairment charges of $2.5 million related to one of our equity investments ( Note 8 ). |
Intangible Assets and Liabili31
Intangible Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Intangible Assets And Liabilities [Abstract] | |
Schedule Of Intangible Assets and Liabilities | Intangible assets and liabilities are summarized as follows (in thousands): June 30, 2017 December 31, 2016 Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets In-place lease 1 - 53 $ 619,653 $ (190,188 ) $ 429,465 $ 620,149 $ (181,598 ) $ 438,551 Above-market rent 5 - 40 95,747 (28,155 ) 67,592 91,895 (24,599 ) 67,296 Below-market ground leases 55 - 94 12,428 (610 ) 11,818 12,023 (508 ) 11,515 727,828 (218,953 ) 508,875 724,067 (206,705 ) 517,362 Indefinite-Lived Intangible Assets Goodwill 304 — 304 304 — 304 Total intangible assets $ 728,132 $ (218,953 ) $ 509,179 $ 724,371 $ (206,705 ) $ 517,666 Finite-Lived Intangible Liabilities Below-market rent 7 - 53 $ (81,372 ) $ 19,879 $ (61,493 ) $ (120,725 ) $ 39,025 $ (81,700 ) Above-market ground lease 49 - 88 (1,145 ) 54 (1,091 ) (1,145 ) 46 (1,099 ) Total intangible liabilities $ (82,517 ) $ 19,933 $ (62,584 ) $ (121,870 ) $ 39,071 $ (82,799 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Other Financial Instruments In Carrying Values And Fair Values | Our other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): June 30, 2017 December 31, 2016 Level Carrying Value Fair Value Carrying Value Fair Value Mortgage debt, net (a) (b) 3 $ 1,921,426 $ 1,953,868 $ 2,022,250 $ 2,053,353 Loans receivable (b) 3 110,500 110,500 31,500 31,500 CMBS (c) 3 5,258 7,627 4,027 7,470 ___________ (a) The carrying value of Mortgage debt, net includes unamortized deferred financing costs of $8.9 million and $9.3 million at June 30, 2017 and December 31, 2016 , respectively. (b) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. (c) At June 30, 2017 and December 31, 2016 , we had three separate tranches of CMBS investments, which are scheduled to mature between November 2017 and February 2018. The carrying value of our CMBS is inclusive of impairment charges for the year ended December 31, 2016 , as well as accretion related to the estimated cash flows expected to be received. |
Schedule Of Fair Value Impairment Charges Using Unobservable Inputs Nonrecurring Basis | The following table presents information about the assets for which we recorded an impairment charge that was measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2017 Three Months Ended June 30, 2016 Fair Value Measurements Total Impairment Charges Fair Value Measurements Total Impairment Charges Impairment Charges Equity investments in real estate $ 4,780 $ 2,510 $ — $ — $ 2,510 $ — Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Fair Value Measurements Total Impairment Charges Fair Value Measurements Total Impairment Charges Impairment Charges Real estate $ 4,719 $ 4,519 $ — $ — Equity investments in real estate 4,780 2,510 — — $ 7,029 $ — |
Risk Management and Use of De33
Risk Management and Use of Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 Asset Derivatives Fair Value at Liability Derivatives Fair Value at Balance Sheet Location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Foreign currency forward contracts Other assets, net $ 25,554 $ 38,735 $ — $ — Interest rate caps Other assets, net 336 79 — — Interest rate swaps Other assets, net 47 54 — — Foreign currency collars Other assets, net — 522 — — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (4,978 ) (6,011 ) Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (499 ) (4 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 1,683 1,848 — — Foreign currency forward contracts Other assets, net 123 — — — Swaption Other assets, net 130 264 — — Interest rate swap Accounts payable, accrued expenses and other liabilities — — (135 ) (173 ) Total derivatives $ 27,873 $ 41,502 $ (5,612 ) $ (6,188 ) |
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) (Effective Portion) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (8,729 ) $ 3,711 $ (12,478 ) $ (5,145 ) Foreign currency collars (945 ) 540 (1,002 ) 145 Interest rate caps (105 ) — (363 ) — Interest rate swaps 44 (127 ) 1,037 (2,589 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts 84 (676 ) (207 ) (1,261 ) Foreign currency collars (7 ) 7 (9 ) (8 ) Total $ (9,658 ) $ 3,455 $ (13,022 ) $ (8,858 ) Amount of Gain (Loss) Reclassified from Other Comprehensive Income (Loss) into Income (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Reclassified to Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Foreign currency forward contracts Other income and (expenses) $ 1,161 $ 1,298 $ 4,019 $ 3,678 Interest rate swaps Interest expense (603 ) (1,822 ) (1,309 ) (3,623 ) Total $ 558 $ (524 ) $ 2,710 $ 55 __________ (a) Excludes net losses of $0.4 million and net gains of $0.1 million recognized on unconsolidated jointly owned investments for the three and six months ended June 30, 2017, respectively. We did not recognize any substantial net gains or losses on unconsolidated jointly owned investments for both the three and six months ended June 30, 2016. (b) The effective portion of the change in fair value and the settlement of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) until the underlying investment is sold, at which time we reclassify the gain or loss to earnings. |
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) Recognized in Income on Derivatives Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Swaption Other income and (expenses) $ (86 ) $ (70 ) $ (134 ) $ (231 ) Stock warrants Other income and (expenses) 33 (99 ) (165 ) (99 ) Foreign currency forward contracts Other income and (expenses) (25 ) — 8 — Interest rate swap Interest expense 8 — 26 — Derivatives in Cash Flow Hedging Relationships Interest rate swaps (a) Interest expense 46 72 92 96 Foreign currency collar Interest expense (5 ) 4 (5 ) — Total $ (29 ) $ (93 ) $ (178 ) $ (234 ) __________ (a) Relates to the ineffective portion of the hedging relationship. |
Schedule of Derivative Instruments | The following table presents the foreign currency derivative contracts we had outstanding and their designations at June 30, 2017 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Amount Fair Value at June 30, 2017 Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 52 105,951 EUR $ 22,772 Foreign currency zero-cost collars 2 15,100 EUR (478 ) Foreign currency zero-cost collars 3 2,000 NOK (9 ) Not Designated as Hedging Instruments Foreign currency forward contracts 11 7,959 NOK 123 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 3 707,716 JPY 2,695 Foreign currency forward contracts 3 5,549 NOK 86 Foreign currency zero-cost collar 1 2,500 NOK (11 ) $ 25,178 The interest rate swaps, caps, and swaption that our consolidated subsidiaries had outstanding at June 30, 2017 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Amount Fair Value at June 30, 2017 (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 13 137,984 USD $ (4,497 ) Interest rate swaps 5 59,274 EUR (434 ) Interest rate caps 4 139,281 EUR 289 Interest rate cap 1 6,394 GBP 24 Interest rate cap 1 75,000 USD 23 Not Designated as Hedging Instrument Interest rate swap 1 4,902 EUR (135 ) Swaption 1 13,230 USD 130 $ (4,600 ) __________ (a) Fair value amount is based on the exchange rate of the euro or British pound sterling at June 30, 2017 , as applicable. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Credit Facilities | The following table presents a summary of our Senior Credit Facility (dollars in thousands): Interest Rate at June 30, 2017 Outstanding Balance at Senior Credit Facility, net June 30, 2017 December 31, 2016 Term Loan (a) LIBOR + 1.45% $ 49,849 $ 49,751 Revolver: Revolver - borrowing in euros (b) LIBOR + 1.50% 27,366 — $ 77,215 $ 49,751 __________ (a) Includes unamortized deferred financing costs and discounts. (b) Amount is based on the exchange rate of the euro at June 30, 2017 . |
Schedule of Debt | Scheduled debt principal payments for the remainder of 2017 , each of the next four calendar years following December 31, 2017 and thereafter through 2031 are as follows (in thousands): Years Ending December 31, Total 2017 (remainder) $ 104,072 2018 (a) 168,386 2019 72,638 2020 421,860 2021 443,147 Thereafter through 2031 803,149 Total principal payments 2,013,252 Deferred financing costs (9,063 ) Unamortized discount, net (5,548 ) Total $ 1,998,641 __________ (a) Includes the $50.0 million Term Loan and $27.4 million of borrowings through the Revolver outstanding at June 30, 2017 under our Senior Credit Facility, which is scheduled to mature on August 26, 2018, unless extended pursuant to its terms. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, 2017 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 26,996 $ (18 ) $ (177,827 ) $ (150,849 ) Other comprehensive income before reclassifications (9,581 ) 1 50,309 40,729 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 603 — — 603 Other income and (expenses) (1,161 ) — — (1,161 ) Total (558 ) — — (558 ) Net current-period Other comprehensive income (10,139 ) 1 50,309 40,171 Net current-period Other comprehensive income attributable to noncontrolling interests — — (1,122 ) (1,122 ) Ending balance $ 16,857 $ (17 ) $ (128,640 ) $ (111,800 ) Three Months Ended June 30, 2016 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 16,456 $ (70 ) $ (137,511 ) $ (121,125 ) Other comprehensive loss before reclassifications 3,615 7 (19,592 ) (15,970 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,822 — — 1,822 Other income and (expenses) (1,298 ) — — (1,298 ) Total 524 — — 524 Net current-period Other comprehensive loss 4,139 7 (19,592 ) (15,446 ) Net current-period Other comprehensive loss attributable to noncontrolling interests — — 470 470 Ending balance $ 20,595 $ (63 ) $ (156,633 ) $ (136,101 ) Six Months Ended June 30, 2017 Gains and Losses Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 29,549 $ (48 ) $ (186,177 ) $ (156,676 ) Other comprehensive income before reclassifications (9,982 ) 31 58,918 48,967 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,309 — — 1,309 Other income and (expenses) (4,019 ) — — (4,019 ) Total (2,710 ) — — (2,710 ) Net current-period Other comprehensive income (12,692 ) 31 58,918 46,257 Net current-period Other comprehensive income attributable to noncontrolling interests — — (1,381 ) (1,381 ) Ending balance $ 16,857 $ (17 ) $ (128,640 ) $ (111,800 ) Six Months Ended June 30, 2016 Gains and Losses on Derivative Instruments Gains and Losses on Marketable Securities Foreign Currency Translation Adjustments Total Beginning balance $ 28,200 $ (77 ) $ (167,928 ) $ (139,805 ) Other comprehensive income before reclassifications (7,550 ) 14 11,736 4,200 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 3,623 — — 3,623 Other income and (expenses) (3,678 ) — — (3,678 ) Total (55 ) — — (55 ) Net current-period Other comprehensive income (7,605 ) 14 11,736 4,145 Net current-period Other comprehensive income attributable to noncontrolling interests — — (441 ) (441 ) Ending balance $ 20,595 $ (63 ) $ (156,633 ) $ (136,101 ) |
Property Dispositions (Tables)
Property Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The results of operations for properties that have been sold or classified as held for sale are included in the consolidated financial statements and are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenues $ 898 $ 10,158 $ 7,904 $ 21,931 Expenses (121 ) (7,043 ) (4,258 ) (15,798 ) Gain on sale of real estate, net of tax 1,171 25,017 2,805 50,415 Loss on extinguishment of debt (44 ) (5,090 ) (1,364 ) (7,590 ) Benefit from (provision for) income taxes 8 (18 ) (2 ) (23 ) Equity in losses of equity method investments in real estate — (2,318 ) (688 ) (3,490 ) Income from properties sold or classified as held for sale, net of income taxes $ 1,912 $ 20,706 $ 4,397 $ 45,445 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | (a) Includes a $15.7 million write off and a $3.3 million acceleration of a below-market rent lease liabilities, pertaining to our KBR Inc. properties that were recognized in Rental income during the six months ended June 30, 2017 ( Note 13 ). (b) We recognized straight-line rent adjustments of $3.9 million and $4.2 million during the three months ended June 30, 2017 and 2016 , respectively, and $7.2 million and $8.8 million during the six months ended June 30, 2017 and 2016 , respectively, which increased Rental income within our consolidated financial statements for each period. (c) Includes an impairment charge of $4.5 million related to a property located in Waldaschaff, Germany ( Note 8 ) incurred during the six months ended June 30, 2017 . (d) In April 2016, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts our Agrokor tenant, which is currently experiencing financial distress and recently received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $3.2 million and $4.8 million during the three and six months ended June 30, 2017 , respectively. In addition, we recorded an impairment on our equity method investment related to this tenant of $2.5 million during both the three and six months ended June 30, 2017 , which was included in equity in earnings on our consolidated financial statements. (e) Includes loss on extinguishment of debt of $0.1 million and $1.7 million during the three and six months ended June 30, 2017 , respectively. (f) Includes a loss on extinguishment of debt of $0.3 million during both the three and six months ended June 30, 2017, and $5.1 million and $7.6 million during the three and six months ended June 30, 2016 , respectively. (g) We recognized a Gain on change in control of interests of $49.9 million during both the three and six months ended June 30, 2016 . This gain was recorded in conjunction with the change in control resulting from the acquisition of a controlling interest in a self-storage investment portfolio that we previously accounted for under the equity investment method. We recorded a non-cash gain on change in control of interests, which was the difference between the carrying value of $15.1 million and the fair value of $64.9 million from our previously held equity interest in April 2016. (h) Included in unallocated corporate overhead are asset management fees and general and administrative expenses, as well as interest expense and other charges related to our Senior Credit Facility. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance. The following tables present a summary of comparative results and assets for these business segments (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net Lease Revenues (a) (b) $ 94,331 $ 94,566 $ 206,854 $ 187,971 Operating expenses (c) (d) (37,867 ) (35,299 ) (79,175 ) (71,517 ) Interest expense (18,698 ) (22,148 ) (39,349 ) (44,281 ) Other income and (expenses), excluding interest expense (e) 1,736 2,976 5,195 5,732 (Provision for) benefit from income taxes (316 ) (2,128 ) 298 (3,903 ) Gain on sale of real estate, net of tax 1,171 — 2,910 — Net income attributable to noncontrolling interests (3,948 ) (3,524 ) (6,273 ) (7,050 ) Net income attributable to CPA ® :17 – Global $ 36,409 $ 34,443 $ 90,460 $ 66,952 Self-Storage Revenues $ 9,031 $ 13,017 $ 17,773 $ 25,078 Operating expenses (6,340 ) (13,053 ) (13,539 ) (20,915 ) Interest expense (1,974 ) (2,643 ) (3,977 ) (4,535 ) Other income and (expenses), excluding interest expense (f) (g) (258 ) 44,828 (260 ) 41,896 Provision for income taxes (30 ) (54 ) (62 ) (117 ) Gain on sale of real estate, net of tax — 25,017 — 50,415 Net income (loss) attributable to CPA ® :17 – Global $ 429 $ 67,112 $ (65 ) $ 91,822 All Other Revenues $ 3,151 $ 1,602 $ 4,891 $ 3,362 Operating expenses (8 ) (17 ) (46 ) (52 ) Interest expense — (3 ) — (6 ) Other income and (expenses), excluding interest expense 187 (2,302 ) (2,221 ) (2,397 ) Provision for income taxes (374 ) (4 ) (1,024 ) (8 ) Net income (loss) attributable to CPA ® :17 – Global $ 2,956 $ (724 ) $ 1,600 $ 899 Corporate Unallocated Corporate Overhead (h) $ (2,017 ) $ (13,114 ) $ (9,397 ) $ (19,865 ) Net income attributable to noncontrolling interests – Available Cash Distributions $ (6,971 ) $ (5,859 ) $ (13,781 ) $ (12,527 ) Total Company Revenues $ 106,513 $ 109,185 $ 229,518 $ 216,411 Operating expenses (55,581 ) (60,037 ) (115,196 ) (116,242 ) Interest expense (21,453 ) (25,368 ) (44,843 ) (49,979 ) Other income and (expenses), excluding interest expense 12,190 44,738 18,218 50,450 Provision for income taxes (1,115 ) (2,294 ) (1,736 ) (4,197 ) Gain on sale of real estate, net of tax 1,171 25,017 2,910 50,415 Net income attributable to noncontrolling interests (10,919 ) (9,383 ) (20,054 ) (19,577 ) Net income attributable to CPA ® :17 – Global $ 30,806 $ 81,858 $ 68,817 $ 127,281 |
Reconciliation of Assets from Segment to Consolidated | Total Assets at June 30, 2017 December 31, 2016 Net Lease (i) $ 3,964,054 $ 3,905,402 All Other (j) 280,228 266,231 Self-Storage 246,381 252,195 Corporate 147,943 275,095 Total Company $ 4,638,606 $ 4,698,923 Includes the impact of the I-drive Property disposition ( Note 4 , Note 6 , Note 13 ), the sale of a property classified as Assets held for sale as of December 31, 2016 , and the sale of three other net-leased properties ( Note 13 ). (j) Includes the impact of the I-drive Wheel restructuring ( Note 4 , Note 5 , Note 13 ). |
Organization - Narratives (Deta
Organization - Narratives (Details) $ in Thousands, ft² in Millions | 6 Months Ended | 73 Months Ended | 126 Months Ended | |
Jun. 30, 2017USD ($)ft²segmentpropertytenant | Jun. 30, 2016USD ($) | Jan. 31, 2013USD ($) | Jun. 30, 2017USD ($)ft²propertytenant | |
Real Estate Properties | ||||
Capital interest in operating partnership | 99.99% | 99.99% | ||
Number of real estate properties | 410 | 410 | ||
Number of tenants | tenant | 117 | 117 | ||
Square footage of real estate properties | ft² | 45 | 45 | ||
Number of reportable segments | segment | 2 | |||
Proceeds from issuance of shares | $ | $ 51,481 | $ 51,877 | $ 2,900,000 | |
Proceeds from DRIP shares | $ | $ 625,400 | |||
Operating real estate | ||||
Real Estate Properties | ||||
Number of real estate properties | 38 | 38 | ||
Square footage of operating properties | ft² | 3 | 3 | ||
Self storage | ||||
Real Estate Properties | ||||
Number of real estate properties | 37 | 37 | ||
Hotel | ||||
Real Estate Properties | ||||
Number of real estate properties | 1 | 1 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Millions | Jun. 30, 2017USD ($)vie | Dec. 31, 2016USD ($)vie |
Property, Plant and Equipment | ||
Variable interest entities, count | 21 | |
Variable interest entities consolidated, count | 8 | |
Variable interest entities unconsolidated, count | 12 | 13 |
Variable interest entities maximum risk exposure | $ | $ 404.4 | $ 377.4 |
Loans and Finance Receivables | ||
Property, Plant and Equipment | ||
Variable interest entities, count | 1 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Real estate | $ 2,713,108 | $ 2,745,424 | ||
Operating real estate | 259,716 | 258,971 | ||
Net investments in direct financing leases | 506,813 | 508,392 | ||
Finite Lived Intangible Asset Acquired In Place Leases Gross | 619,653 | 620,149 | ||
Accumulated depreciation and amortization | (557,157) | (506,238) | ||
Other assets, net | 288,779 | 228,717 | ||
Total assets | 4,638,606 | 4,698,923 | ||
Liabilities | ||||
Mortgage debt, net | 1,921,426 | 2,022,250 | ||
Accounts payable, accrued expenses and other liabilities | 119,774 | 128,911 | ||
Deferred income taxes | 35,050 | 32,655 | ||
Total liabilities | 2,284,665 | 2,383,919 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Assets | ||||
Real estate | 107,311 | $ 104,488 | 225,347 | $ 225,270 |
Operating real estate | 0 | 0 | 11,388 | 0 |
Net investments in direct financing leases | 311,362 | 315,582 | 315,251 | 303,112 |
Finite Lived Intangible Asset Acquired In Place Leases Gross | 8,342 | 7,949 | 8,795 | 7,909 |
Accumulated depreciation and amortization | (23,442) | (21,631) | (25,000) | (19,049) |
Other assets, net | 40,857 | 41,161 | 52,565 | 54,888 |
Total assets | 447,325 | 450,876 | 590,526 | 578,989 |
Liabilities | ||||
Mortgage debt, net | 128,733 | 129,414 | 192,839 | 187,639 |
Accounts payable, accrued expenses and other liabilities | 6,751 | 6,922 | 11,187 | 12,352 |
Deferred income taxes | 16,319 | 16,344 | 15,687 | 10,675 |
Total liabilities | $ 152,175 | 153,051 | 220,077 | 211,060 |
Variable Interest Entity, Primary Beneficiary | Adjustment | ||||
Assets | ||||
Real estate | (111,100) | (111,100) | (111,100) | |
Finite Lived Intangible Asset Acquired In Place Leases Gross | (21,800) | (21,800) | (21,800) | |
Accumulated depreciation and amortization | (22,400) | (21,600) | (18,200) | |
Other assets, net | (13,200) | (13,000) | (11,800) | |
Total assets | (123,700) | (124,400) | (126,500) | |
Liabilities | ||||
Mortgage debt, net | (72,500) | (73,000) | (75,200) | |
Accounts payable, accrued expenses and other liabilities | (3,200) | (3,300) | (3,300) | |
Total liabilities | $ (76,000) | $ (76,600) | $ (78,800) |
Agreements and Transactions w41
Agreements and Transactions with Related Parties - Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Acquisitions and Disposition Fees | |||
Preferred return by advisor | 5.00% | ||
Interest rate on unpaid deferred acquisition fees | 5.00% | ||
Asset Management Fees and Available Cash Distributions | |||
Net asset value (usd per share) | $ 10.11 | ||
Percentage of asset management fees paid in cash | 100.00% | 50.00% | |
Percentage of asset management fees paid in shares | 50.00% | ||
Common stock shares outstanding, shares | 346,996,478 | 343,575,840 | |
Percentage of available cash distribution to advisor | 10.00% | ||
Personnel And Office Rent Reimbursement | |||
Maximum personnel and overhead reimbursement, percentage | 2.20% | 2.00% | |
Legal fee reimbursement rate | 0.25% | ||
Due from affiliate | $ 0.9 | ||
Advisor | |||
Asset Management Fees and Available Cash Distributions | |||
Common stock shares outstanding, shares | 13,190,709 | ||
Percentage of total common stock outstanding held by related party | 3.80% | ||
Average invested assets | |||
Personnel And Office Rent Reimbursement | |||
Percentage of operating expenses reimbursements | 2.00% | ||
Adjusted net income | |||
Personnel And Office Rent Reimbursement | |||
Percentage of operating expenses reimbursements | 25.00% | ||
Minimum | |||
Personnel And Office Rent Reimbursement | |||
Ownership interest, percentage | 6.00% | ||
Minimum | Average equity value | |||
Asset Management Fees and Available Cash Distributions | |||
Percentage of asset management fees | 1.50% | ||
Maximum | |||
Acquisitions and Disposition Fees | |||
Interest rate on unpaid deferred acquisition fees | 6.00% | ||
Personnel And Office Rent Reimbursement | |||
Ownership interest, percentage | 97.00% | ||
Maximum | Real estate commission | |||
Acquisitions and Disposition Fees | |||
Percentage of subordinated disposition fees | 50.00% | ||
Maximum | Contract sales price of investment | |||
Acquisitions and Disposition Fees | |||
Percentage of subordinated disposition fees | 3.00% | ||
Maximum | Average equity value | |||
Asset Management Fees and Available Cash Distributions | |||
Percentage of asset management fees | 1.75% | ||
Long-term net lease | |||
Acquisitions and Disposition Fees | |||
Percentage of acquisition fees | 4.50% | ||
Long-term net lease | Average market value | |||
Asset Management Fees and Available Cash Distributions | |||
Percentage of asset management fees | 0.50% | ||
Long-term net lease | Current | |||
Acquisitions and Disposition Fees | |||
Percentage of acquisition fees | 2.50% | ||
Long-term net lease | Deferred | |||
Acquisitions and Disposition Fees | |||
Percentage of acquisition fees | 2.00% | ||
Non-long term net lease | Minimum | |||
Acquisitions and Disposition Fees | |||
Percentage of acquisition fees | 1.00% | ||
Non-long term net lease | Maximum | |||
Acquisitions and Disposition Fees | |||
Percentage of acquisition fees | 1.75% |
Agreements and Transactions w42
Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amounts Included in the Consolidated Statements of Income | ||||
Asset management fees | $ 7,339 | $ 7,484 | $ 14,664 | $ 14,966 |
Available Cash Distributions | 6,971 | 5,859 | 13,781 | 12,527 |
Personnel and overhead reimbursements | 2,310 | 2,364 | 4,601 | 5,025 |
Interest expense on deferred acquisition fees and loan from affiliate | 68 | 66 | 132 | 129 |
Director compensation | 53 | 53 | 106 | 105 |
Acquisition expenses | 0 | 218 | 0 | 1,441 |
Operating expenses | 16,741 | 16,044 | 33,284 | 34,193 |
Acquisition Fees Capitalized | ||||
Current acquisition fees | 3,537 | 543 | 3,823 | 557 |
Deferred acquisition fees | 2,829 | 434 | 3,058 | 445 |
Personnel and overhead reimbursements | 379 | 40 | 486 | 101 |
Transaction fees incurred | $ 6,745 | $ 1,017 | $ 7,367 | $ 1,103 |
Agreements and Transactions w43
Agreements and Transactions with Related Parties - Due to Affiliates (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Due to Affiliates | ||
Deferred acquisition fees, including interest | $ 7,346 | $ 6,584 |
Asset management fees payable | 2,463 | 2,250 |
Reimbursable costs | 2,214 | 2,299 |
Accounts payable | 191 | 360 |
Current acquisition fees | 14 | 230 |
Due to Related Parties | $ 12,228 | $ 11,723 |
Real Estate, Operating Real E44
Real Estate, Operating Real Estate, and Assets Held for Sale - Narratives (Details) $ in Thousands | Mar. 13, 2017USD ($) | Feb. 02, 2017USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 17, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2012USD ($) |
Foreign Currency Translation | ||||||||||
Effects of foreign currency translation on balance sheet item | $ 50,309 | $ (19,592) | $ 58,918 | $ 11,736 | ||||||
Acquisition | ||||||||||
Acquisition-related cost and fees, capitalized | 6,745 | 1,017 | 7,367 | 1,103 | ||||||
Financing receivable | $ 617,313 | $ 617,313 | 617,313 | $ 539,892 | ||||||
I Drive Property | ||||||||||
Acquisition | ||||||||||
Construction loan | $ 50,000 | |||||||||
Financing receivable | $ 34,000 | |||||||||
Deferred gain on the sale of property | 2,100 | |||||||||
I Drive Property | Developer | ||||||||||
Acquisition | ||||||||||
Purchase option exercised, value | 117,500 | |||||||||
Non recourse mortgage loan assumed | $ 60,000 | |||||||||
Real estate, net | ||||||||||
Acquisition | ||||||||||
Proceeds from sale of real estate | $ 14,100 | |||||||||
Number of properties sold | property | 3 | |||||||||
Real estate, net | Direct Financing Lease | ||||||||||
Acquisition | ||||||||||
Number of properties sold | property | 2 | |||||||||
Real estate | ||||||||||
Foreign Currency Translation | ||||||||||
Effects of foreign currency translation on balance sheet item | 88,400 | |||||||||
Depreciation expense including effects of foreign currency translation | $ 15,900 | 16,000 | 32,200 | 31,900 | ||||||
Real estate | Buffalo Grove, IL | ||||||||||
Acquisition | ||||||||||
Investment purchase price | $ 11,500 | |||||||||
Land assumed | 2,000 | |||||||||
Building assumed | 7,500 | |||||||||
Acquired finite-lived intangible asset, amount | 2,000 | |||||||||
Acquisition-related cost and fees, capitalized | $ 500 | |||||||||
Operating real estate | ||||||||||
Foreign Currency Translation | ||||||||||
Depreciation expense including effects of foreign currency translation | $ 2,300 | $ 1,700 | $ 3,300 | $ 4,500 |
Real Estate, Operating Real E45
Real Estate, Operating Real Estate, and Assets Held for Sale - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investments in real estate | ||
Net investments in real estate | $ 3,650,308 | $ 3,745,466 |
Real estate | ||
Investments in real estate | ||
Land | 555,590 | 563,050 |
Buildings | 2,157,518 | 2,182,374 |
Less: Accumulated depreciation | (315,987) | (280,657) |
Net investments in real estate | 2,397,121 | 2,464,767 |
Operating real estate | ||
Investments in real estate | ||
Land | 55,645 | 55,645 |
Buildings | 204,071 | 203,326 |
Less: Accumulated depreciation | (22,217) | (18,876) |
Net investments in real estate | $ 237,499 | $ 240,095 |
Real Estate, Operating Real E46
Real Estate, Operating Real Estate, and Assets Held for Sale - Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 0 | $ 14,850 |
Real estate, net | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Assets held for sale | $ 0 | $ 14,850 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | Mar. 17, 2017USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2017USD ($)property | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Accounts, Notes, Loans and Financing Receivable | ||||||
Proceeds from sale of real estate, net | $ 111,279 | $ 107,650 | ||||
Financing receivable | $ 617,313 | $ 617,313 | 617,313 | $ 539,892 | ||
Loans reclassified from equity | $ 45,000 | |||||
I Drive Property | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable | $ 34,000 | |||||
Interest rate on loan (percentage) | 9.00% | |||||
Proceeds from collection of loans receivable | $ 5,000 | |||||
Loan receivable converted | 10,000 | |||||
Deferred gain on transfer of asset | 2,100 | |||||
I Drive Property | Fair Value | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Loans receivable, fair value | 35,000 | |||||
I Drive Property | Carrying Value | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Equity investment | $ 18,600 | |||||
I Shop | Developer | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Equity interest pledged as collateral, percentage | 80.00% | |||||
I Drive Wheel | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Deferred gain on transfer of asset | $ 16,400 | |||||
I Drive Wheel | Developer | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Interest rate on loan (percentage) | 6.50% | |||||
I Drive Wheel | Refinanced | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable | $ 35,000 | |||||
Interest rate on loan (percentage) | 6.50% | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Number of properties sold | property | 3 | |||||
Direct Financing Lease | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Number of properties sold | property | 2 | |||||
Proceeds from sale of real estate, net | $ 6,100 | |||||
Other assets, net | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Financing receivable | $ 110,500 | $ 110,500 | $ 110,500 | $ 31,500 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Jun. 30, 2017USD ($)tenant | Dec. 31, 2016USD ($)tenant |
Credit Quality Of Finanace Receivables: | ||
Financing receivable | $ 617,313 | $ 539,892 |
Direct Financing Method | Internally Assigned Grade 1 | ||
Credit Quality Of Finanace Receivables: | ||
Number of tenants and obligors | tenant | 0 | 0 |
Financing receivable | $ 0 | $ 0 |
Direct Financing Method | Internally Assigned Grade 2 | ||
Credit Quality Of Finanace Receivables: | ||
Number of tenants and obligors | tenant | 2 | 2 |
Financing receivable | $ 62,365 | $ 61,949 |
Direct Financing Method | Internally Assigned Grade 3 | ||
Credit Quality Of Finanace Receivables: | ||
Number of tenants and obligors | tenant | 9 | 9 |
Financing receivable | $ 413,949 | $ 412,075 |
Direct Financing Method | Internally Assigned Grade 4 | ||
Credit Quality Of Finanace Receivables: | ||
Number of tenants and obligors | tenant | 6 | 5 |
Financing receivable | $ 108,094 | $ 65,868 |
Direct Financing Method | Internally Assigned Grade 5 | ||
Credit Quality Of Finanace Receivables: | ||
Number of tenants and obligors | tenant | 2 | 0 |
Financing receivable | $ 32,905 | $ 0 |
Equity Investments in Real Es49
Equity Investments in Real Estate - Narratives (Details) $ in Thousands | May 19, 2017USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | May 23, 2017USD ($)property |
Schedule of Equity Method Investments | ||||||||
Impairment charges | $ 2,510 | $ 0 | $ 7,029 | $ 0 | ||||
Proceeds from mortgage financing | 178,695 | 107,441 | ||||||
Mortgage debt, net | $ 1,921,426 | $ 1,921,426 | $ 2,022,250 | |||||
Number of real estate properties | property | 410 | 410 | ||||||
Preferred return | 5.00% | |||||||
Proceeds from equity method investment | $ 26,278 | 22,307 | ||||||
Unamortized basis differences on our equity investments | $ 24,500 | 24,500 | $ 19,100 | |||||
Unconsolidated Equity Investments | ||||||||
Schedule of Equity Method Investments | ||||||||
Proceeds from equity method investment | 12,400 | 11,600 | 33,700 | 24,600 | ||||
Net Lease | Hellweg 2 | ||||||||
Schedule of Equity Method Investments | ||||||||
Proceeds from mortgage financing | $ 90,300 | |||||||
Net Lease | Jumbo Logistiek Vastgooed B.V | ||||||||
Schedule of Equity Method Investments | ||||||||
Mortgage debt on tenancy in common | $ 62,300 | $ 62,300 | ||||||
Net Lease | Kesko Senukai II | Third Party | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership interest, percentage | 70.00% | 70.00% | 70.00% | |||||
Equity investments in real estate including debt obligation | $ 141,500 | |||||||
Mortgage debt, net | $ 88,000 | |||||||
Net Lease | Kesko Senukai II | Third Party | Retail Store | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of real estate properties | property | 18 | |||||||
Net Lease | Kesko Senukai II | Third Party | Warehouse | ||||||||
Schedule of Equity Method Investments | ||||||||
Number of real estate properties | property | 1 | |||||||
Net Lease | Kesko Senukai II | Third Party | Tenant | ||||||||
Schedule of Equity Method Investments | ||||||||
Ownership interest, percentage | 30.00% | |||||||
Net Lease | WPC | Hellweg 2 | ||||||||
Schedule of Equity Method Investments | ||||||||
Proceeds from mortgage financing | $ 243,800 | |||||||
Ownership interest, percentage | 37.00% | 37.00% | ||||||
Net Lease | WPC | Jumbo Logistiek Vastgooed B.V | ||||||||
Schedule of Equity Method Investments | ||||||||
Mortgage debt on tenancy in common | $ 73,300 | $ 73,300 | ||||||
Ownership interest, percentage | 85.00% | 85.00% | ||||||
All Other | BPS Nevada, LLC | Third Party | ||||||||
Schedule of Equity Method Investments | ||||||||
Preferred return | 12.00% | |||||||
Proceeds from equity method investment | $ 27,000 | |||||||
Level 3 | Nonrecurring | Equity Method Investments | ||||||||
Schedule of Equity Method Investments | ||||||||
Impairment charges | $ 2,510 | $ 0 | $ 2,510 | $ 0 |
Equity Investments in Real Es50
Equity Investments in Real Estate - Proportionate Share of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | $ 2,270 | $ 1,580 | $ 4,255 | $ 3,752 |
Equity Method Investments | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | 2,935 | 2,637 | 5,782 | 6,057 |
Equity Method Investments | Net Lease | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | 2,475 | 4,761 | 7,430 | 8,313 |
Equity Method Investments | All Other | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | 460 | (2,124) | (1,648) | (1,862) |
Equity Method Investments | Self-Storage | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | 0 | 0 | 0 | (394) |
Amortization of Basis Difference on Equity Investments | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | (665) | (1,057) | (1,527) | (2,305) |
Amortization of Basis Difference on Equity Investments | Net Lease | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | (562) | (820) | (1,125) | (1,640) |
Amortization of Basis Difference on Equity Investments | All Other | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | (103) | (237) | (402) | (626) |
Amortization of Basis Difference on Equity Investments | Self-Storage | ||||
Equity Method Investment, Financial Statement, Reported Amounts | ||||
Equity in earnings of equity method investments in real estate | $ 0 | $ 0 | $ 0 | $ (39) |
Equity Investments in Real Es51
Equity Investments in Real Estate - Ownership Interest in Equity Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | May 23, 2017 | Dec. 31, 2016 |
Ownership interest in equity investments: | |||
Equity investments in real estate | $ 534,435 | $ 451,105 | |
Net Lease | |||
Ownership interest in equity investments: | |||
Equity investments in real estate | $ 372,314 | 222,342 | |
Net Lease | Third Party | Kesko Senukai II | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 70.00% | 70.00% | |
Equity investments in real estate | $ 55,069 | 0 | |
Net Lease | Third Party | BPS Nevada, LLC | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 15.00% | ||
Equity investments in real estate | $ 23,645 | 23,036 | |
Net Lease | WPC | Hellweg Die Profi-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 37.00% | ||
Equity investments in real estate | $ 104,637 | 10,125 | |
Net Lease | WPC | Jumbo Logistiek Vastgooed B.V | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 85.00% | ||
Equity investments in real estate | $ 55,215 | 54,621 | |
Net Lease | WPC | U-Haul Moving Partners, Inc. and Mercury Partners, LP | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 12.00% | ||
Equity investments in real estate | $ 36,748 | 37,601 | |
Net Lease | WPC | Berry Global Inc. | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 50.00% | ||
Equity investments in real estate | $ 14,585 | 14,974 | |
Net Lease | WPC | Tesco Global Aruhazak Zrt. | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 49.00% | ||
Equity investments in real estate | $ 11,145 | 10,807 | |
Net Lease | WPC | Eroski Sociedad Cooperativa - Mallorca | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 30.00% | ||
Equity investments in real estate | $ 7,117 | 6,576 | |
Net Lease | WPC | Dick’s Sporting Goods, Inc. | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 45.00% | ||
Equity investments in real estate | $ 4,057 | 4,367 | |
Net Lease | CPA 18 - Global | Bank Pekao S.A. | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 50.00% | ||
Equity investments in real estate | $ 25,709 | 23,025 | |
Net Lease | CPA 18 - Global | State Farm | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 50.00% | ||
Equity investments in real estate | $ 16,952 | 17,603 | |
Net Lease | CPA 18 - Global | Apply Sorco AS | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 49.00% | ||
Equity investments in real estate | $ 12,655 | 12,528 | |
Net Lease | CPA 18 - Global | Konzum d.d., Zagreb (referred to as Agrokor) | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 20.00% | ||
Equity investments in real estate | $ 4,780 | 7,079 | |
All Other | |||
Ownership interest in equity investments: | |||
Equity investments in real estate | $ 162,121 | 228,763 | |
All Other | Third Party | Shelborne Operating Property Associates, LLC | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 33.00% | ||
Equity investments in real estate | $ 124,720 | 127,424 | |
All Other | Third Party | BG LLH, LLC | |||
Ownership interest in equity investments: | |||
Ownership interest, percentage | 6.00% | ||
Equity investments in real estate | $ 37,401 | 36,756 | |
All Other | Third Party | IDL Wheel Tenant, LLC | |||
Ownership interest in equity investments: | |||
Equity investments in real estate | 0 | 37,124 | |
All Other | Third Party | BPS Nevada, LLC Preferred Equity | |||
Ownership interest in equity investments: | |||
Equity investments in real estate | $ 0 | $ 27,459 |
Intangible Assets and Liabili52
Intangible Assets and Liabilities - Narratives (Details) - USD ($) $ in Thousands | Feb. 02, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 13, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Net amortization of intangibles | $ 10,500 | $ 10,600 | $ 23,300 | $ 19,900 | |||
Financing receivable | 617,313 | 617,313 | $ 539,892 | ||||
Below and above market rent intangibles | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Rental income | $ (300) | $ 100 | $ 18,500 | $ 300 | |||
Real estate | Buffalo Grove, IL | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquired finite-lived intangible asset, amount | $ 2,000 | ||||||
Finite lived intangible asset/liability, useful life | 20 years | ||||||
Written off | KBR | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment of intangible liabilities written off | $ 15,700 |
Intangible Assets and Liabili53
Intangible Assets and Liabilities - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | $ 727,828 | $ 724,067 |
Less: accumulated amortization | (218,953) | (206,705) |
Finite-lived intangible assets, net | 508,875 | 517,362 |
Indefinite-Lived Intangible Assets | ||
Goodwill | 304 | 304 |
Total intangible assets, gross | 728,132 | 724,371 |
Total intangible assets, net | 509,179 | 517,666 |
Finite-Lived Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (82,517) | (121,870) |
Less: accumulated amortization | 19,933 | 39,071 |
Finite-lived intangible liabilities, net | (62,584) | (82,799) |
Below-market rent | ||
Finite-Lived Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (81,372) | (120,725) |
Less: accumulated amortization | 19,879 | 39,025 |
Finite-lived intangible liabilities, net | $ (61,493) | (81,700) |
Below-market rent | Minimum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 7 years | |
Below-market rent | Maximum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 53 years | |
Above-market ground lease | ||
Finite-Lived Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | $ (1,145) | (1,145) |
Less: accumulated amortization | 54 | 46 |
Finite-lived intangible liabilities, net | $ (1,091) | (1,099) |
Above-market ground lease | Minimum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 49 years | |
Above-market ground lease | Maximum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 88 years | |
In-place lease | ||
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | $ 619,653 | 620,149 |
Less: accumulated amortization | (190,188) | (181,598) |
Finite-lived intangible assets, net | $ 429,465 | 438,551 |
In-place lease | Minimum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 1 year | |
In-place lease | Maximum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 53 years | |
Above-market rent | ||
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | $ 95,747 | 91,895 |
Less: accumulated amortization | (28,155) | (24,599) |
Finite-lived intangible assets, net | $ 67,592 | 67,296 |
Above-market rent | Minimum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 5 years | |
Above-market rent | Maximum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 40 years | |
Below-market ground leases | ||
Finite-Lived Intangible Assets | ||
Finite-lived intangible assets, gross | $ 12,428 | 12,023 |
Less: accumulated amortization | (610) | (508) |
Finite-lived intangible assets, net | $ 11,818 | $ 11,515 |
Below-market ground leases | Minimum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 55 years | |
Below-market ground leases | Maximum | ||
Intangible Assets Liabilities | ||
Finite lived intangible asset/liability, useful life | 94 years |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping | |||||
Deferred financing cost | $ 9,063 | $ 9,063 | |||
Impairment charges on real estate | 0 | $ 0 | 4,519 | $ 0 | |
Impairment charges | 2,510 | 0 | 7,029 | 0 | |
Noncontrolling Interests | |||||
Fair Value, Balance Sheet Grouping | |||||
Impairment charges | 1,500 | ||||
Level 3 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping | |||||
Deferred financing cost | 8,900 | 8,900 | $ 9,300 | ||
Nonrecurring | Real estate | Level 3 | |||||
Fair Value, Balance Sheet Grouping | |||||
Impairment charges | 4,519 | 0 | |||
Fair Value Disclosure For Impairments | 4,719 | 0 | 4,719 | 0 | |
Nonrecurring | Equity Method Investments | Level 3 | |||||
Fair Value, Balance Sheet Grouping | |||||
Impairment charges | 2,510 | 0 | 2,510 | 0 | |
Fair Value Disclosure For Impairments | $ 4,780 | $ 0 | $ 4,780 | $ 0 | |
Fair value inputs, discount rate | 9.75% | 12.40% | |||
Residual discount rate | 10.90% | ||||
Residual capitalization rate | 10.40% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping | ||
Mortgage debt, net | $ 1,921,426 | $ 2,022,250 |
Loans receivable, fair value | 110,500 | 31,500 |
CMBS | 5,258 | 4,027 |
Fair Value | ||
Fair Value, Balance Sheet Grouping | ||
Mortgage debt, net | 1,953,868 | 2,053,353 |
Loans receivable, fair value | 110,500 | 31,500 |
CMBS | $ 7,627 | $ 7,470 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Impairment Charges From Continuing Operations | ||||
Impairment charges | $ 2,510 | $ 0 | $ 7,029 | $ 0 |
Real estate | Nonrecurring | Level 3 | ||||
Impairment Charges From Continuing Operations | ||||
Fair Value Measurements | 4,719 | 0 | 4,719 | 0 |
Impairment charges | 4,519 | 0 | ||
Equity investments in real estate | Nonrecurring | Level 3 | ||||
Impairment Charges From Continuing Operations | ||||
Fair Value Measurements | 4,780 | 0 | 4,780 | 0 |
Impairment charges | $ 2,510 | $ 0 | $ 2,510 | $ 0 |
Risk Management and Use of De57
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Mar. 13, 2017 | Dec. 31, 2016 | |
Derivative Instrument Detail | |||
Derivative asset collateral offset | $ 0 | $ 0 | |
Derivative, remaining maturity | 77 months | ||
Collateral received | $ 0 | ||
Total credit exposure on derivatives | 24,800,000 | ||
Derivatives, net liability position | 5,800,000 | 6,700,000 | |
Aggregate termination value for immediate settlement | $ 6,100,000 | $ 7,300,000 | |
KBR | Written off | |||
Derivative Instrument Detail | |||
Impairment of intangible liabilities written off | $ 15,700,000 | ||
Revenue | KBR | |||
Derivative Instrument Detail | |||
Concentration risk, (percentage) | 15.40% | ||
Single Counterparty | |||
Derivative Instrument Detail | |||
Total credit exposure on derivatives | $ 9,700,000 | ||
Interest expense | |||
Derivative Instrument Detail | |||
Estimated amount reclassified from OCI to income, derivatives | 1,800,000 | ||
Other income and (expenses) | |||
Derivative Instrument Detail | |||
Estimated amount reclassified from OCI to income, derivatives | $ 7,500,000 |
Risk Management and Use of De58
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Derivative assets, fair value, net | $ 27,873 | $ 41,502 |
Derivative liability, fair value, net | (5,612) | (6,188) |
Derivatives Designated as Hedging Instruments | Other assets, net | Foreign currency forward contracts | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 25,554 | 38,735 |
Derivatives Designated as Hedging Instruments | Other assets, net | Interest rate caps | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 336 | 79 |
Derivatives Designated as Hedging Instruments | Other assets, net | Interest rate swaps | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 47 | 54 |
Derivatives Designated as Hedging Instruments | Other assets, net | Foreign currency collars | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 0 | 522 |
Derivatives Designated as Hedging Instruments | Accounts payable, accrued expenses and other liabilities | Interest rate swaps | ||
Derivatives, Fair Value | ||
Derivative liability, fair value, net | (4,978) | (6,011) |
Derivatives Designated as Hedging Instruments | Accounts payable, accrued expenses and other liabilities | Foreign currency collars | ||
Derivatives, Fair Value | ||
Derivative liability, fair value, net | (499) | (4) |
Derivatives Not Designated as Hedging Instruments | Other assets, net | Foreign currency forward contracts | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 123 | 0 |
Derivatives Not Designated as Hedging Instruments | Other assets, net | Stock warrants | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 1,683 | 1,848 |
Derivatives Not Designated as Hedging Instruments | Other assets, net | Swaption | ||
Derivatives, Fair Value | ||
Derivative assets, fair value, net | 130 | 264 |
Derivatives Not Designated as Hedging Instruments | Accounts payable, accrued expenses and other liabilities | Interest rate swaps | ||
Derivatives, Fair Value | ||
Derivative liability, fair value, net | $ (135) | $ (173) |
Risk Management and Use of De59
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in OCI (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | $ (9,658,000) | $ 3,455,000 | $ (13,022,000) | $ (8,858,000) |
Equity Method Investments | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | (400,000) | 0 | 100,000 | 0 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency forward contracts | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | (8,729,000) | 3,711,000 | (12,478,000) | (5,145,000) |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | (945,000) | 540,000 | (1,002,000) | 145,000 |
Derivatives in Cash Flow Hedging Relationships | Interest rate caps | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | (105,000) | 0 | (363,000) | 0 |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | 44,000 | (127,000) | 1,037,000 | (2,589,000) |
Derivatives in Net Investment Hedging Relationships | Foreign currency forward contracts | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | 84,000 | (676,000) | (207,000) | (1,261,000) |
Derivatives in Net Investment Hedging Relationships | Foreign currency collars | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Effective Portion) | ||||
Derivatives, income (loss) recognized in OCI, effective portion, net | $ (7,000) | $ 7,000 | $ (9,000) | $ (8,000) |
Risk Management and Use of De60
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Reclassified From OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | ||||
Derivatives, income (loss) reclassified from AOCI to Income, effective portion, net | $ 558 | $ (524) | $ 2,710 | $ 55 |
Foreign currency forward contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | ||||
Derivatives, income (loss) reclassified from AOCI to Income, effective portion, net | 1,161 | 1,298 | 4,019 | 3,678 |
Interest rate swaps | Interest expense | ||||
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | ||||
Derivatives, income (loss) reclassified from AOCI to Income, effective portion, net | $ (603) | $ (1,822) | $ (1,309) | $ (3,623) |
Risk Management and Use of De61
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | $ (29) | $ (93) | $ (178) | $ (234) |
Derivatives Not Designated as Hedging Instruments | Swaption | Other income and (expenses) | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | (86) | (70) | (134) | (231) |
Derivatives Not Designated as Hedging Instruments | Stock warrants | Other income and (expenses) | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | 33 | (99) | (165) | (99) |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | (25) | 0 | 8 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Interest expense | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | 8 | 0 | 26 | 0 |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Interest expense | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | 46 | 72 | 92 | 96 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | Interest expense | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||
Amount of gain (loss) recognized income on derivatives | $ (5) | $ 4 | $ (5) | $ 0 |
Risk Management and Use of De62
Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Swaptions Summary (Details) € in Thousands, £ in Thousands, $ in Thousands | Jun. 30, 2017USD ($)instrument | Jun. 30, 2017EUR (€)instrument | Jun. 30, 2017GBP (£)instrument |
Derivative | |||
Fair value | $ (4,600) | ||
Derivatives Designated as Hedging Instruments | Interest rate swaps | USD | |||
Derivative | |||
Number of Instruments | instrument | 13 | 13 | 13 |
Notional Amount | $ 137,984 | ||
Fair value | $ (4,497) | ||
Derivatives Designated as Hedging Instruments | Interest rate swaps | Euro | |||
Derivative | |||
Number of Instruments | instrument | 5 | 5 | 5 |
Notional Amount | € | € 59,274 | ||
Fair value | $ (434) | ||
Derivatives Designated as Hedging Instruments | Interest rate cap | USD | |||
Derivative | |||
Number of Instruments | instrument | 1 | 1 | 1 |
Notional Amount | $ 75,000 | ||
Fair value | $ 23 | ||
Derivatives Designated as Hedging Instruments | Interest rate cap | Euro | |||
Derivative | |||
Number of Instruments | instrument | 4 | 4 | 4 |
Notional Amount | € | € 139,281 | ||
Fair value | $ 289 | ||
Derivatives Designated as Hedging Instruments | Interest rate cap | GBP | |||
Derivative | |||
Number of Instruments | instrument | 1 | 1 | 1 |
Notional Amount | £ | £ 6,394 | ||
Fair value | $ 24 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Euro | |||
Derivative | |||
Number of Instruments | instrument | 1 | 1 | 1 |
Notional Amount | € | € 4,902 | ||
Fair value | $ (135) | ||
Not Designated as Hedging Instrument | Swaption | USD | |||
Derivative | |||
Number of Instruments | instrument | 1 | 1 | 1 |
Notional Amount | $ 13,230 | ||
Fair value | $ 130 |
Risk Management and Use of De63
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, ¥ in Thousands, NOK in Thousands, $ in Thousands | Jun. 30, 2017USD ($)instrument | Jun. 30, 2017JPY (¥)instrument | Jun. 30, 2017NOKinstrument | Jun. 30, 2017EUR (€)instrument |
Derivative Instrument Detail | ||||
Fair value, foreign currency derivatives | $ 25,178 | |||
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Foreign currency forward contracts | Euro | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 52 | 52 | 52 | 52 |
Notional Amount | € | € 105,951 | |||
Fair value, foreign currency derivatives | $ 22,772 | |||
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Foreign currency collars | Euro | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 2 | 2 | 2 | 2 |
Notional Amount | € | € 15,100 | |||
Fair value, foreign currency derivatives | $ (478) | |||
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Foreign currency collars | NOK | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 3 | 3 | 3 | 3 |
Notional Amount | NOK | NOK 2,000 | |||
Fair value, foreign currency derivatives | $ (9) | |||
Derivatives Designated as Hedging Instruments | Designated as Net Investment Hedging Instruments | Foreign currency forward contracts | NOK | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 3 | 3 | 3 | 3 |
Notional Amount | NOK | NOK 5,549 | |||
Fair value, foreign currency derivatives | $ 86 | |||
Derivatives Designated as Hedging Instruments | Designated as Net Investment Hedging Instruments | Foreign currency forward contracts | JPY | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 3 | 3 | 3 | 3 |
Notional Amount | ¥ | ¥ 707,716 | |||
Fair value, foreign currency derivatives | $ 2,695 | |||
Derivatives Designated as Hedging Instruments | Designated as Net Investment Hedging Instruments | Foreign currency collars | NOK | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 1 | 1 | 1 | 1 |
Notional Amount | NOK | NOK 2,500 | |||
Fair value, foreign currency derivatives | $ (11) | |||
Not Designated as Hedging Instrument | Foreign currency forward contracts | NOK | ||||
Derivative Instrument Detail | ||||
Number of Instruments | instrument | 11 | 11 | 11 | 11 |
Notional Amount | NOK | NOK 7,959 | |||
Fair value, foreign currency derivatives | $ 123 |
Debt - Narratives (Details)
Debt - Narratives (Details) | Aug. 26, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)loan | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Mar. 17, 2017USD ($) |
Additional Debt Disclosures | ||||||||
Payments of mortgage principal | $ 329,321,000 | $ 57,969,000 | ||||||
Mortgage debt, net | $ 1,921,426,000 | 1,921,426,000 | $ 2,022,250,000 | |||||
Loss on extinguishment of debt | 353,000 | $ 5,090,000 | 1,967,000 | 7,590,000 | ||||
Line of credit, maximum borrowing capacity | $ 250,000,000 | |||||||
Proceeds from Senior Credit Facility | 67,261,000 | 75,693,000 | ||||||
Repayments of Senior Credit Facility | 40,677,000 | 169,558,000 | ||||||
Commitment fee threshold | 50.00% | |||||||
Credit facility fees | $ 1,900,000 | |||||||
Debt and capital lease obligation | 77,215,000 | 77,215,000 | 49,751,000 | |||||
Line of credit | 77,215,000 | 77,215,000 | 49,751,000 | |||||
Restriction payment threshold | 100,000,000 | 100,000,000 | ||||||
Debt scheduled to mature in 2018 | 168,386,000 | 168,386,000 | ||||||
Effects of foreign currency translation on balance sheet item | 50,309,000 | $ (19,592,000) | 58,918,000 | $ 11,736,000 | ||||
Non-recourse debt | ||||||||
Additional Debt Disclosures | ||||||||
Effects of foreign currency translation on balance sheet item | 47,700,000 | |||||||
Revolver | ||||||||
Additional Debt Disclosures | ||||||||
Line of credit, maximum borrowing capacity | $ 200,000,000 | |||||||
Debt maturity date | Aug. 26, 2018 | |||||||
Revolver | Euro | ||||||||
Additional Debt Disclosures | ||||||||
Debt and capital lease obligation | 0 | |||||||
Debt scheduled to mature in 2018 | 27,366,000 | 27,366,000 | ||||||
Revolver | Accordion | ||||||||
Additional Debt Disclosures | ||||||||
Line of credit, maximum borrowing capacity | $ 250,000,000 | |||||||
Term Loan | ||||||||
Additional Debt Disclosures | ||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | |||||||
Debt maturity date | Aug. 26, 2018 | |||||||
Debt and capital lease obligation | 49,849,000 | 49,849,000 | $ 50,000,000 | $ 49,751,000 | ||||
Debt scheduled to mature in 2018 | 50,000,000 | 50,000,000 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Additional Debt Disclosures | ||||||||
Mortgage debt, net | $ 31,200,000 | $ 31,200,000 | ||||||
Interest rate on debt | 4.90% | 4.90% | ||||||
Seven Properties | ||||||||
Additional Debt Disclosures | ||||||||
Payments of mortgage principal | $ 147,000,000 | |||||||
Loans repaid, count | loan | 7 | |||||||
Property in Italy | ||||||||
Additional Debt Disclosures | ||||||||
Payments of mortgage principal | $ 9,300,000 | |||||||
I Drive Property | ||||||||
Additional Debt Disclosures | ||||||||
Loss on extinguishment of debt | $ 1,300,000 | |||||||
LIBOR | Revolver | Euro | ||||||||
Additional Debt Disclosures | ||||||||
Basis spread | 1.50% | |||||||
LIBOR | Term Loan | ||||||||
Additional Debt Disclosures | ||||||||
Basis spread | 1.45% | 1.55% | ||||||
Minimum | ||||||||
Additional Debt Disclosures | ||||||||
Debt maturity date | Dec. 31, 2017 | |||||||
Credit facility fee, rate | 0.15% | |||||||
Minimum | Revolver | Euro Currency Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 1.50% | |||||||
Minimum | Revolver | Base Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 0.50% | |||||||
Minimum | Term Loan | Euro Currency Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 1.45% | |||||||
Minimum | Term Loan | Base Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 0.45% | |||||||
Minimum | Fixed interest rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on mortgage loan | 1.90% | |||||||
Minimum | Variable interest rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on mortgage loan | 1.30% | |||||||
Maximum | ||||||||
Additional Debt Disclosures | ||||||||
Debt maturity date | Dec. 31, 2031 | |||||||
Credit facility fee, rate | 0.30% | |||||||
Maximum | Revolver | Euro Currency Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 2.25% | |||||||
Maximum | Revolver | Base Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 1.25% | |||||||
Maximum | Term Loan | Euro Currency Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 2.20% | |||||||
Maximum | Term Loan | Base Rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on debt | 1.20% | |||||||
Maximum | Fixed interest rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on mortgage loan | 7.40% | |||||||
Maximum | Variable interest rate | ||||||||
Additional Debt Disclosures | ||||||||
Interest rate on mortgage loan | 6.00% | |||||||
Developer | I Drive Property | ||||||||
Additional Debt Disclosures | ||||||||
Non recourse mortgage loan assumed | $ 60,000,000 | |||||||
Debt Refinanced | ||||||||
Additional Debt Disclosures | ||||||||
Payments of mortgage principal | $ 157,700,000 | |||||||
Weighted average interest rate | 2.80% | 2.80% | ||||||
Debt instrument, term | 3 years | |||||||
Mortgage debt, net | $ 180,000,000 | $ 180,000,000 |
Debt - Summary of Senior Credit
Debt - Summary of Senior Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Debt and capital lease obligation | $ 77,215 | $ 49,751 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Debt and capital lease obligation | $ 49,849 | $ 50,000 | 49,751 |
Term Loan | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.45% | 1.55% | |
Revolver | Euro | |||
Debt Instrument [Line Items] | |||
Debt and capital lease obligation | $ 0 | ||
Revolver | Euro | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread | 1.50% |
Debt - Schedule of Debt Princip
Debt - Schedule of Debt Principal Payments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2017 (remainder) | $ 104,072 |
2,018 | 168,386 |
2,019 | 72,638 |
2,020 | 421,860 |
2,021 | 443,147 |
Thereafter through 2031 | 803,149 |
Total principal payments | 2,013,252 |
Deferred financing cost | (9,063) |
Unamortized discount, net | (5,548) |
Total | $ 1,998,641 |
Equity - Narratives (Details)
Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Distributions Per Share | |||||
Distributions declared per share, (usd per share) | $ 0.1625 | $ 0.1625 | $ 0.3250 | $ 0.3250 | |
Distributions payable | $ 56,388 | $ 56,388 | $ 55,830 | ||
Aggregate distributions declared | $ 112,500 |
Equity - Reclassifications Out
Equity - Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning equity balance, value | $ 2,315,004 | $ 2,294,595 | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Interest expense | $ 21,453 | $ 25,368 | 44,843 | 49,979 |
Total other comprehensive loss | 40,171 | (15,446) | 46,257 | 4,145 |
Ending equity balance, value | 2,353,941 | 2,355,219 | 2,353,941 | 2,355,219 |
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning equity balance, value | (150,849) | (121,125) | (156,676) | (139,805) |
Other comprehensive loss before reclassifications | 40,729 | (15,970) | 48,967 | 4,200 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (558) | 524 | (2,710) | (55) |
Total other comprehensive loss | 40,171 | (15,446) | 46,257 | 4,145 |
Net current-period Other comprehensive income attributable to noncontrolling interests | (1,122) | 470 | (1,381) | (441) |
Ending equity balance, value | (111,800) | (136,101) | (111,800) | (136,101) |
Accumulated Other Comprehensive Loss | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Interest expense | 603 | 1,822 | 1,309 | 3,623 |
Other income and (expenses) | (1,161) | (1,298) | (4,019) | (3,678) |
Gains and Losses on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning equity balance, value | 26,996 | 16,456 | 29,549 | 28,200 |
Other comprehensive loss before reclassifications | (9,581) | 3,615 | (9,982) | (7,550) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (558) | 524 | (2,710) | (55) |
Total other comprehensive loss | (10,139) | 4,139 | (12,692) | (7,605) |
Net current-period Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending equity balance, value | 16,857 | 20,595 | 16,857 | 20,595 |
Gains and Losses on Derivative Instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Interest expense | 603 | 1,822 | 1,309 | 3,623 |
Other income and (expenses) | (1,161) | (1,298) | (4,019) | (3,678) |
Gains and Losses on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning equity balance, value | (18) | (70) | (48) | (77) |
Other comprehensive loss before reclassifications | 1 | 7 | 31 | 14 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | 0 | 0 |
Total other comprehensive loss | 1 | 7 | 31 | 14 |
Net current-period Other comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending equity balance, value | (17) | (63) | (17) | (63) |
Gains and Losses on Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Interest expense | 0 | 0 | 0 | 0 |
Other income and (expenses) | 0 | 0 | 0 | 0 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning equity balance, value | (177,827) | (137,511) | (186,177) | (167,928) |
Other comprehensive loss before reclassifications | 50,309 | (19,592) | 58,918 | 11,736 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | 0 | 0 |
Total other comprehensive loss | 50,309 | (19,592) | 58,918 | 11,736 |
Net current-period Other comprehensive income attributable to noncontrolling interests | (1,122) | 470 | (1,381) | (441) |
Ending equity balance, value | (128,640) | (156,633) | (128,640) | (156,633) |
Foreign Currency Translation Adjustments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Interest expense | 0 | 0 | 0 | 0 |
Other income and (expenses) | $ 0 | $ 0 | $ 0 | $ 0 |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | Mar. 17, 2017USD ($)property | Mar. 13, 2017USD ($) | Jun. 30, 2017USD ($)property | Jun. 30, 2016USD ($)property | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($)property | Dec. 31, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Financing receivable | $ 617,313 | $ 617,313 | $ 539,892 | ||||
Loss on extinguishment of debt | $ 353 | $ 5,090 | 1,967 | $ 7,590 | |||
Payments of mortgage principal | 329,321 | 57,969 | |||||
Property in Italy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Payments of mortgage principal | 9,300 | ||||||
I Drive Property | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Financing receivable | $ 34,000 | ||||||
Deferred gain on the sale of property | 2,100 | ||||||
Loss on extinguishment of debt | 1,300 | ||||||
I Drive Property | Developer | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Non recourse mortgage loan assumed | 60,000 | ||||||
I Drive Wheel | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Deferred gain on the sale of property | $ 16,400 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of properties sold | property | 3 | ||||||
Proceeds from sale of real estate | $ 14,100 | ||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Property in Italy | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of properties sold | property | 3 | ||||||
Proceeds from sale of real estate | $ 14,600 | ||||||
Gain on sale of real estate, net of tax | 1,200 | ||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on sale of real estate, net of tax | 1,600 | $ 1,171 | $ 25,017 | 2,805 | $ 50,415 | ||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Self-Storage | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of properties sold | property | 9 | 12 | |||||
Proceeds from sale of real estate | $ 61,300 | $ 107,700 | |||||
Gain on sale of real estate, net of tax | 25,000 | 50,400 | |||||
Loss on extinguishment of debt | 5,100 | 7,600 | |||||
Payments of mortgage principal | $ 27,900 | $ 42,900 | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | KBR | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Accelerated amortization of intangible liabilities | $ 3,300 | ||||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | I Drive Property | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of properties sold | property | 1 | ||||||
Proceeds from sale of real estate | $ 23,500 | ||||||
Written off | KBR | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment of intangible liabilities written off | $ 15,700 |
Property Dispositions - Results
Property Dispositions - Results of Operations (Details) - Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Thousands | Mar. 13, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | |||||
Revenues | $ 898 | $ 10,158 | $ 7,904 | $ 21,931 | |
Expenses | (121) | (7,043) | (4,258) | (15,798) | |
Gain on sale of real estate, net of tax | $ 1,600 | 1,171 | 25,017 | 2,805 | 50,415 |
Loss on extinguishment of debt | (44) | (5,090) | (1,364) | (7,590) | |
Benefit from (provision for) income taxes | 8 | (18) | (2) | (23) | |
Equity in earnings of equity method investments in real estate | 0 | (2,318) | (688) | (3,490) | |
Income before gain on sale of real estate, net of tax | $ 1,912 | $ 20,706 | $ 4,397 | $ 45,445 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jun. 30, 2016USD ($) | Mar. 13, 2017USD ($) | Apr. 11, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Straight line rent adjustment | $ 3,900 | $ 4,200 | $ 7,200 | $ 8,800 | ||
Impairment charges | 0 | 0 | 4,519 | 0 | ||
Impairment on equity method investment | 2,510 | 0 | 7,029 | 0 | ||
Loss on extinguishment of debt | 353 | 5,090 | 1,967 | 7,590 | ||
Gain on change in control of interests | 0 | 49,922 | 0 | 49,922 | ||
Carrying value of previously held equity investment | $ 15,100 | |||||
Fair value of previously held equity investment | $ 64,900 | |||||
Operating Segments | Net Lease | ||||||
Segment Reporting Information [Line Items] | ||||||
Bad debt expense | 3,200 | 4,800 | ||||
Loss on extinguishment of debt | 100 | 1,700 | ||||
Operating Segments | Self storage | ||||||
Segment Reporting Information [Line Items] | ||||||
Loss on extinguishment of debt | (300) | (300) | (5,100) | (7,600) | ||
Equity Method Investments | Level 3 | Nonrecurring | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment on equity method investment | $ 2,510 | $ 0 | 2,510 | $ 0 | ||
Written off | KBR | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment of intangible liabilities written off | $ 15,700 | |||||
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | KBR | ||||||
Segment Reporting Information [Line Items] | ||||||
Accelerated amortization of intangible liabilities | $ 3,300 |
Segment Reporting - Income Stat
Segment Reporting - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information, Profit (Loss) | ||||
Revenues | $ 106,513 | $ 109,185 | $ 229,518 | $ 216,411 |
Operating expenses | (55,581) | (60,037) | (115,196) | (116,242) |
Interest expense | (21,453) | (25,368) | (44,843) | (49,979) |
Other income and expenses, excluding interest expense | 12,190 | 44,738 | 18,218 | 50,450 |
Provision for income taxes | (1,115) | (2,294) | (1,736) | (4,197) |
Gain on the sale of property | 1,171 | 25,017 | 2,910 | 50,415 |
Net income attributable to noncontrolling interests | (10,919) | (9,383) | (20,054) | (19,577) |
Net income attributable to CPA®:17 – Global | 30,806 | 81,858 | 68,817 | 127,281 |
Operating Segments | Net Lease | ||||
Segment Reporting Information, Profit (Loss) | ||||
Revenues | 94,331 | 94,566 | 206,854 | 187,971 |
Operating expenses | (37,867) | (35,299) | (79,175) | (71,517) |
Interest expense | (18,698) | (22,148) | (39,349) | (44,281) |
Other income and expenses, excluding interest expense | 1,736 | 2,976 | 5,195 | 5,732 |
Provision for income taxes | (316) | (2,128) | 298 | (3,903) |
Gain on the sale of property | 1,171 | 0 | 2,910 | 0 |
Net income attributable to noncontrolling interests | (3,948) | (3,524) | (6,273) | (7,050) |
Net income attributable to CPA®:17 – Global | 36,409 | 34,443 | 90,460 | 66,952 |
Operating Segments | Self-Storage | ||||
Segment Reporting Information, Profit (Loss) | ||||
Revenues | 9,031 | 13,017 | 17,773 | 25,078 |
Operating expenses | (6,340) | (13,053) | (13,539) | (20,915) |
Interest expense | (1,974) | (2,643) | (3,977) | (4,535) |
Other income and expenses, excluding interest expense | (258) | 44,828 | (260) | 41,896 |
Provision for income taxes | (30) | (54) | (62) | (117) |
Gain on the sale of property | 0 | 25,017 | 0 | 50,415 |
Net income attributable to CPA®:17 – Global | 429 | 67,112 | (65) | 91,822 |
Operating Segments | All Other | ||||
Segment Reporting Information, Profit (Loss) | ||||
Revenues | 3,151 | 1,602 | 4,891 | 3,362 |
Operating expenses | (8) | (17) | (46) | (52) |
Interest expense | 0 | (3) | 0 | (6) |
Other income and expenses, excluding interest expense | 187 | (2,302) | (2,221) | (2,397) |
Provision for income taxes | (374) | (4) | (1,024) | (8) |
Net income attributable to CPA®:17 – Global | 2,956 | (724) | 1,600 | 899 |
Corporate | ||||
Segment Reporting Information, Profit (Loss) | ||||
Net income attributable to noncontrolling interests | (6,971) | (5,859) | (13,781) | (12,527) |
Unallocated Corporate Overhead | $ (2,017) | $ (13,114) | $ (9,397) | $ (19,865) |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information, Additional Information | ||
Assets | $ 4,638,606 | $ 4,698,923 |
Corporate | ||
Segment Reporting Information, Additional Information | ||
Assets | 147,943 | 275,095 |
Net Lease | Operating Segments | ||
Segment Reporting Information, Additional Information | ||
Assets | 3,964,054 | 3,905,402 |
Self-Storage | Operating Segments | ||
Segment Reporting Information, Additional Information | ||
Assets | 246,381 | 252,195 |
All Other | Operating Segments | ||
Segment Reporting Information, Additional Information | ||
Assets | $ 280,228 | $ 266,231 |