Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | W. P. Carey Inc. | |
Entity Central Index Key | 1,025,378 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 106,909,474 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in real estate: | ||
Land, buildings and improvements | $ 5,429,239 | $ 5,285,837 |
Net investments in direct financing leases | 717,184 | 684,059 |
In-place lease and other intangible assets | 1,204,770 | 1,172,238 |
Above-market rent intangible assets | 639,140 | 632,383 |
Assets held for sale | 10,596 | 26,247 |
Investments in real estate | 8,000,929 | 7,800,764 |
Accumulated depreciation and amortization | (1,249,024) | (1,018,864) |
Net investments in real estate | 6,751,905 | 6,781,900 |
Equity investments in the Managed Programs and real estate | 327,598 | 298,893 |
Cash and cash equivalents | 169,770 | 155,482 |
Due from affiliates | 154,336 | 299,610 |
Other assets, net | 287,481 | 282,149 |
Goodwill | 643,321 | 635,920 |
Total assets | 8,334,411 | 8,453,954 |
Debt: | ||
Unsecured senior notes, net | 2,455,383 | 1,807,200 |
Unsecured term loans, net | 382,191 | 249,978 |
Unsecured revolving credit facility | 224,213 | 676,715 |
Non-recourse mortgages, net | 1,253,051 | 1,706,921 |
Debt, net | 4,314,838 | 4,440,814 |
Accounts payable, accrued expenses and other liabilities | 255,911 | 266,917 |
Below-market rent and other intangible liabilities, net | 116,980 | 122,203 |
Deferred income taxes | 86,581 | 90,825 |
Distributions payable | 109,187 | 107,090 |
Total liabilities | 4,883,497 | 5,027,849 |
Redeemable noncontrolling interest | 965 | 965 |
Commitments and contingencies (Note 11) | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.001 par value, 450,000,000 shares authorized; 106,897,515 and 106,294,162 shares, respectively, issued and outstanding | 107 | 106 |
Additional paid-in capital | 4,429,240 | 4,399,961 |
Distributions in excess of accumulated earnings | (1,017,901) | (894,137) |
Deferred compensation obligation | 46,711 | 50,222 |
Accumulated other comprehensive loss | (229,581) | (254,485) |
Total stockholders’ equity | 3,228,576 | 3,301,667 |
Noncontrolling interests | 221,373 | 123,473 |
Total equity | 3,449,949 | 3,425,140 |
Total liabilities and equity | $ 8,334,411 | $ 8,453,954 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
W. P. Carey stockholders’ equity: | ||
Preferred stock, par share 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, per share value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares outstanding (shares) | 106,897,515 | 106,294,162 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Owned Real Estate: | ||||
Lease revenues | $ 161,511 | $ 163,786 | $ 475,547 | $ 506,358 |
Operating property revenues | 8,449 | 8,524 | 23,652 | 23,696 |
Reimbursable tenant costs | 5,397 | 6,537 | 15,940 | 19,237 |
Lease termination income and other | 1,227 | 1,224 | 4,234 | 34,603 |
Total real estate revenue | 176,584 | 180,071 | 519,373 | 583,894 |
Investment Management: | ||||
Asset management revenue | 17,938 | 15,978 | 53,271 | 45,596 |
Structuring revenue | 9,817 | 12,301 | 27,981 | 30,990 |
Reimbursable costs from affiliates | 6,211 | 14,540 | 45,390 | 46,372 |
Dealer manager fees | 105 | 1,835 | 4,430 | 5,379 |
Other advisory revenue | 99 | 522 | 896 | 522 |
Revenue from the Managed Programs | 34,170 | 45,176 | 131,968 | 128,859 |
Total revenues | 210,754 | 225,247 | 651,341 | 712,753 |
Operating Expenses | ||||
Depreciation and amortization | 64,040 | 62,802 | 189,319 | 213,835 |
General and administrative | 17,236 | 15,733 | 53,189 | 58,122 |
Reimbursable tenant and affiliate costs | 11,608 | 21,077 | 61,330 | 65,609 |
Property expenses, excluding reimbursable tenant costs | 10,556 | 10,193 | 31,196 | 38,475 |
Subadvisor fees | 5,206 | 4,842 | 11,598 | 10,010 |
Stock-based compensation expense | 4,635 | 4,356 | 14,649 | 14,964 |
Restructuring and other compensation | 1,356 | 0 | 9,074 | 11,925 |
Dealer manager fees and expenses | 462 | 3,028 | 6,544 | 9,000 |
Other expenses | 65 | 0 | 1,138 | 5,359 |
Impairment charges | 0 | 14,441 | 0 | 49,870 |
Total operating expenses | 115,164 | 136,472 | 378,037 | 477,169 |
Other Income and Expenses | ||||
Interest expense | (41,182) | (44,349) | (125,374) | (139,496) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 16,318 | 16,803 | 47,820 | 48,243 |
Other income and (expenses) | (4,569) | 5,101 | (4,969) | 9,398 |
Total other income and expenses | (29,433) | (22,445) | (82,523) | (81,855) |
Income before income taxes and gain on sale of real estate | 66,157 | 66,330 | 190,781 | 153,729 |
(Provision for) benefit from income taxes | (1,760) | (3,154) | (2,903) | 4,538 |
Income before gain on sale of real estate | 64,397 | 63,176 | 187,878 | 158,267 |
Gain on sale of real estate, net of tax | 19,257 | 49,126 | 22,732 | 68,070 |
Net Income | 83,654 | 112,302 | 210,610 | 226,337 |
Net income attributable to noncontrolling interests | (3,376) | (1,359) | (8,530) | (6,294) |
Net Income Attributable to W. P. Carey | $ 80,278 | $ 110,943 | $ 202,080 | $ 220,043 |
Basic Earnings Per Share (usd per share) | $ 0.74 | $ 1.03 | $ 1.87 | $ 2.06 |
Diluted Earnings Per Share (usd per share) | $ 0.74 | $ 1.03 | $ 1.87 | $ 2.05 |
Weighted-Average Shares Outstanding | ||||
Basic (in shares) | 108,019,292 | 107,221,668 | 107,751,672 | 106,493,145 |
Diluted (in shares) | 108,143,694 | 107,468,029 | 107,947,490 | 106,853,174 |
Distributions Declared Per Share (usd per share) | $ 1.005 | $ 0.985 | $ 3 | $ 2.9392 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 83,654 | $ 112,302 | $ 210,610 | $ 226,337 |
Other Comprehensive Income (Loss) | ||||
Foreign currency translation adjustments | 28,979 | (11,824) | 71,686 | (41,999) |
Realized and unrealized loss on derivative instruments | (10,270) | (3,093) | (32,574) | (5,999) |
Change in unrealized gain (loss) on marketable securities | 66 | (7) | (260) | (3) |
Net current period other comprehensive loss | 18,775 | (14,924) | 38,852 | (48,001) |
Comprehensive Income | 102,429 | 97,378 | 249,462 | 178,336 |
Amounts Attributable to Noncontrolling Interests | ||||
Net income attributable to noncontrolling interests | (3,376) | (1,359) | (8,530) | (6,294) |
Foreign currency translation adjustments | (4,716) | (218) | (13,961) | (1,051) |
Realized and unrealized loss on derivative instruments | 8 | 17 | 13 | 17 |
Comprehensive income attributable to noncontrolling interests | (8,084) | (1,560) | (22,478) | (7,328) |
Comprehensive Income Attributable to W. P. Carey | $ 94,345 | $ 95,818 | $ 226,984 | $ 171,008 |
Consolidated Statement of Equit
Consolidated Statement of Equity (Unaudited) - USD ($) $ in Thousands | Total | Total W.P. Carey Members | $0.001 Par Value Common Stock | Additional Paid-in Capital | Distributions in Excess of Accumulated Earnings | Deferred Compensation Obligation | Accumulated Other Comprehensive Loss | Noncontrolling interests |
Balance - beginning of period at Dec. 31, 2015 | $ 3,561,428 | $ 3,427,243 | $ 104 | $ 4,282,042 | $ (738,652) | $ 56,040 | $ (172,291) | $ 134,185 |
Beginning equity balance, shares at Dec. 31, 2015 | 104,448,777 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under “at-the-market” offering, net | 83,786 | 83,786 | $ 2 | 83,784 | ||||
Shares issued under “at-the-market” offering, net, shares | 1,249,836 | |||||||
Contributions from noncontrolling interest | 14,319 | 14,319 | ||||||
Shares issued upon delivery of vested restricted shares awards, value | (14,505) | (14,505) | $ 0 | (14,505) | ||||
Shares issued upon delivery of vested restricted shares awards, shares | 326,176 | |||||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, value | 1,491 | 1,491 | $ 0 | 1,491 | ||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, shares | 32,873 | |||||||
Shares issued to a third party in connection with the redemption of a redeemable noncontrolling interest, value | 13,418 | 13,418 | $ 0 | 13,418 | ||||
Shares issued to a third party in connection with the redemption of a redeemable noncontrolling interest, shares | 217,011 | |||||||
Delivery of deferred vested shares, net | 0 | 0 | 5,712 | (5,712) | ||||
Amortization of stock-based compensation expense | 18,170 | 18,170 | 18,170 | |||||
Deconsolidation of affiliate (Note 2) | (14,184) | (14,184) | ||||||
Distributions to noncontrolling interests | (13,418) | (13,418) | ||||||
Distributions declared | (314,339) | (314,339) | 1,672 | (316,259) | 248 | |||
Net income | 226,337 | 220,043 | 220,043 | 6,294 | ||||
Redemption value adjustment | 561 | 561 | 561 | |||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | (41,999) | (43,050) | (43,050) | 1,051 | ||||
Realized and unrealized loss on derivative instruments | (5,999) | (5,982) | (5,982) | (17) | ||||
Change in unrealized loss on marketable securities | (3) | (3) | (3) | |||||
Balance - end of period at Sep. 30, 2016 | 3,512,081 | 3,383,851 | $ 106 | 4,389,363 | (834,868) | 50,576 | (221,326) | 128,230 |
Ending equity balance, shares at Sep. 30, 2016 | 106,274,673 | |||||||
Balance - beginning of period at Jun. 30, 2016 | (206,201) | |||||||
Balance - end of period at Sep. 30, 2016 | 3,512,081 | 3,383,851 | $ 106 | 4,389,363 | (834,868) | 50,576 | (221,326) | 128,230 |
Ending equity balance, shares at Sep. 30, 2016 | 106,274,673 | |||||||
Balance - beginning of period at Dec. 31, 2016 | $ 3,425,140 | 3,301,667 | $ 106 | 4,399,961 | (894,137) | 50,222 | (254,485) | 123,473 |
Beginning equity balance, shares at Dec. 31, 2016 | 106,294,162 | 106,294,162 | ||||||
W.P. Carey Stockholders | ||||||||
Shares issued under “at-the-market” offering, net | $ 22,857 | 22,857 | $ 1 | 22,856 | ||||
Shares issued under “at-the-market” offering, net, shares | 345,253 | |||||||
Contributions from noncontrolling interest | 90,487 | 90,487 | ||||||
Acquisition of noncontrolling interest | (1,845) | (1,845) | 1,845 | |||||
Shares issued upon delivery of vested restricted shares awards, value | (9,678) | (9,678) | $ 0 | (9,678) | ||||
Shares issued upon delivery of vested restricted shares awards, shares | 219,540 | |||||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, value | $ (1,595) | (1,595) | $ 0 | (1,595) | ||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, shares | 134,709 | 38,560 | ||||||
Delivery of deferred vested shares, net | $ 0 | 3,734 | (3,734) | |||||
Amortization of stock-based compensation expense | 14,649 | 14,649 | 14,649 | |||||
Distributions to noncontrolling interests | (16,910) | (16,910) | ||||||
Distributions declared | (324,463) | (324,463) | 1,158 | (325,844) | 223 | |||
Net income | 210,610 | 202,080 | 202,080 | 8,530 | ||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | 71,686 | 57,725 | 57,725 | 13,961 | ||||
Realized and unrealized loss on derivative instruments | (32,574) | (32,561) | (32,561) | (13) | ||||
Change in unrealized loss on marketable securities | (260) | (260) | (260) | |||||
Balance - end of period at Sep. 30, 2017 | $ 3,449,949 | 3,228,576 | $ 107 | 4,429,240 | (1,017,901) | 46,711 | (229,581) | 221,373 |
Ending equity balance, shares at Sep. 30, 2017 | 106,897,515 | 106,897,515 | ||||||
Balance - beginning of period at Jun. 30, 2017 | (243,648) | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued upon exercise of stock options and purchases under employee share purchase plan, shares | 2,475 | |||||||
Balance - end of period at Sep. 30, 2017 | $ 3,449,949 | $ 3,228,576 | $ 107 | $ 4,429,240 | $ (1,017,901) | $ 46,711 | $ (229,581) | $ 221,373 |
Ending equity balance, shares at Sep. 30, 2017 | 106,897,515 | 106,897,515 |
Consolidated Statement of Equi7
Consolidated Statement of Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Distributions declared (usd per share) | $ 1.005 | $ 0.985 | $ 3 | $ 2.9392 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows — Operating Activities | ||
Net income | $ 210,610 | $ 226,337 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 195,298 | 216,002 |
Investment Management revenue received in shares of Managed REITs and other | (53,170) | (22,088) |
Distributions of earnings from equity investments | 49,365 | 48,303 |
Equity in earnings of equity method investments in the Managed Programs and real estate | (47,820) | (48,243) |
Amortization of rent-related intangibles and deferred rental revenue | 37,210 | (8,796) |
Gain on sale of real estate | (22,732) | (68,070) |
Stock-based compensation expense | 14,649 | 18,170 |
Straight-line rent | (13,511) | (12,138) |
Realized and unrealized losses (gains) on foreign currency transactions, derivatives, extinguishment of debt, and other | 13,112 | (6,921) |
Deferred income taxes | (8,167) | (19,094) |
Impairment charges | 0 | 49,870 |
Allowance for credit losses | 0 | 7,064 |
Changes in assets and liabilities: | ||
Deferred structuring revenue received | 15,256 | 18,161 |
Net changes in other operating assets and liabilities | (4,526) | (15,771) |
Increase in deferred structuring revenue receivable | (3,697) | (5,310) |
Net Cash Provided by Operating Activities | 381,877 | 377,476 |
Cash Flows — Investing Activities | ||
Proceeds from repayment of short-term loans to affiliates | 229,696 | 37,053 |
Funding of short-term loans to affiliates | (123,492) | (20,000) |
Proceeds from sale of real estate | 102,503 | 392,867 |
Funding for real estate construction and expansions | (36,741) | (41,874) |
Capital expenditures on owned real estate | (10,819) | (7,104) |
Change in investing restricted cash | 9,588 | 7,775 |
Return of capital from equity investments | 6,482 | 3,522 |
Purchases of real estate | (6,000) | (385,835) |
Other investing activities, net | 5,728 | 2,549 |
Capital contributions to equity investments in real estate | (1,291) | (6) |
Capital expenditures on corporate assets | (349) | (846) |
Deconsolidation of affiliate (Note 2) | 0 | (15,408) |
Investment in assets of affiliate (Note 2) | 0 | (14,861) |
Proceeds from limited partnership units issued by affiliate (Note 2) | 0 | 14,184 |
Net Cash Provided by (Used in) Investing Activities | 175,305 | (27,984) |
Cash Flows — Financing Activities | ||
Repayments of Senior Unsecured Credit Facility | (1,557,814) | (837,575) |
Proceeds from Senior Unsecured Credit Facility | 1,189,591 | 720,568 |
Proceeds from issuance of Unsecured Senior Notes | 530,456 | 348,887 |
Distributions paid | (322,389) | (310,509) |
Scheduled payments of mortgage principal | (303,538) | (113,420) |
Prepayments of mortgage principal | (157,370) | (193,030) |
Contributions from noncontrolling interests | 90,487 | 135 |
Proceeds from shares issued under “at-the-market” offering, net of selling costs | 22,833 | 84,093 |
Distributions paid to noncontrolling interests | (16,910) | (13,418) |
Payment of financing costs | (12,672) | (2,949) |
Payments for withholding taxes upon delivery of equity-based awards and exercises of stock options | (11,423) | (15,943) |
Change in financing restricted cash | (2,097) | 926 |
Proceeds from mortgage financing | 969 | 33,935 |
Proceeds from exercise of stock options and purchases under the employee share purchase plan | 149 | 204 |
Net Cash Used in Financing Activities | (549,728) | (298,096) |
Change in Cash and Cash Equivalents During the Period | ||
Effect of exchange rate changes on cash and cash equivalents | 6,834 | 860 |
Net increase in cash and cash equivalents | 14,288 | 52,256 |
Cash and cash equivalents, beginning of period | 155,482 | 157,227 |
Cash and cash equivalents, end of period | $ 169,770 | $ 209,483 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization W. P. Carey Inc., or W. P. Carey, is, together with its consolidated subsidiaries, a REIT that provides long-term financing via sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. We invest primarily in commercial properties domestically and internationally. We earn revenue principally by leasing the properties we own to single corporate tenants, on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property. Originally founded in 1973, we reorganized as a REIT in September 2012 in connection with our merger with Corporate Property Associates 15 Incorporated. We refer to that merger as the CPA ® :15 Merger. On January 31, 2014, Corporate Property Associates 16 – Global Incorporated, or CPA ® :16 – Global, merged with and into us, which we refer to as the CPA ® :16 Merger. Our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.” We have elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code. As a REIT, we are not generally subject to United States federal income taxation other than from our taxable REIT subsidiaries, or TRSs, as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. We hold all of our real estate assets attributable to our Owned Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs. Through our TRSs, we also earn revenue as the advisor to publicly owned, non-listed REITs, which are sponsored by us under the Corporate Property Associates, or CPA ® , brand name and invest in similar properties. At September 30, 2017 , we were the advisor to Corporate Property Associates 17 – Global Incorporated, or CPA ® :17 – Global, and Corporate Property Associates 18 – Global Incorporated, or CPA ® :18 – Global. We refer to CPA ® :17 – Global and CPA ® :18 – Global together as the CPA ® REITs. At September 30, 2017 , we were also the advisor to Carey Watermark Investors Incorporated, or CWI 1, and Carey Watermark Investors 2 Incorporated, or CWI 2, two publicly owned, non-listed REITs that invest in lodging and lodging-related properties. We refer to CWI 1 and CWI 2 together as the CWI REITs and, together with the CPA ® REITs, as the Managed REITs ( Note 3 ). At September 30, 2017 , we were also the advisor to Carey European Student Housing Fund I, L.P., or CESH I, a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe ( Note 3 ). We refer to the Managed REITs and CESH I collectively as the Managed Programs. On June 15, 2017, our board of directors, or the Board, approved a plan to exit all non-traded retail fundraising activities carried out by our wholly-owned broker-dealer subsidiary, Carey Financial LLC, or Carey Financial, as of June 30, 2017. We currently expect to continue to manage all existing Managed Programs through the end of their respective natural life cycles ( Note 3 ). In August 2017, we resigned as the advisor to Carey Credit Income Fund (known as Guggenheim Credit Income Fund since October 23, 2017), or CCIF, and by extension, its feeder funds, or the CCIF Feeder Funds, each of which is a business development company, or BDC ( Note 3 ). We refer to CCIF and the CCIF Feeder Funds collectively as the Managed BDCs. The board of trustees of CCIF approved our resignation and appointed CCIF’s subadvisor Guggenheim Partners Investment Management, LLC, or Guggenheim, as the interim sole advisor to CCIF, effective as of September 11, 2017. The shareholders of CCIF approved Guggenheim’s appointment as sole advisor on a permanent basis on October 20, 2017. The Managed BDCs were included in the Managed Programs prior to our resignation as their advisor. Reportable Segments As a result of our Board’s decision to exit all non-traded retail fundraising activities, described above, we have revised how we view and present a component of our two reportable segments. As such, beginning with the second quarter of 2017, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed Programs and (ii) special general partner interests in the operating partnerships of the Managed REITs in our Investment Management segment. Previously, these items were recognized within our Owned Real Estate segment. We also include our equity investments in the Managed Programs in our Investment Management segment. Both (i) earnings from our investment in CCIF and (ii) our investment in CCIF continue to be included in our Investment Management segment. Results of operations and assets by segment for prior periods have been reclassified to conform to the current period presentation. Owned Real Estate — We own and invest in commercial properties principally in North America, Europe, Australia, and Asia, which are leased to companies, primarily on a triple-net lease basis. We also own two hotels, which are considered operating properties. We earn lease revenues from our wholly-owned and co-owned real estate investments that we control. In addition, we generate equity income through co-owned real estate investments that we do not control ( Note 7 ). At September 30, 2017 , our owned portfolio was comprised of our full or partial ownership interests in 890 properties, totaling approximately 85.9 million square feet, substantially all of which were net leased to 211 tenants, with an occupancy rate of 99.8% . Investment Management — Through our TRSs, we structure and negotiate investments and debt placement transactions for the Managed Programs, for which we earn structuring revenue, and manage their portfolios of real estate investments, for which we earn asset management revenue. We also earned asset management revenue from CCIF based on the average of its gross assets at fair value through the effective date of our resignation as its advisor. We may earn disposition revenue when we negotiate and structure the sale of properties on behalf of the Managed REITs, and we may also earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing liquidity events for the Managed REITs’ stockholders. In addition, we generate equity income through our ownership of shares and limited partnership units of the Managed Programs ( Note 7 ). Through our special general partner interests in the operating partnerships of the Managed REITs, we also participate in their cash flows ( Note 3 ). Our Board’s decision to exit all non-traded retail fundraising activities through Carey Financial as of June 30, 2017, as discussed above, will not affect the continuation of these current revenue streams. At September 30, 2017 , the CPA ® REITs collectively owned all or a portion of 461 properties (including certain properties in which we have an ownership interest), totaling approximately 54.1 million square feet, substantially all of which were net leased to 207 tenants, with an occupancy rate of approximately 99.7% . The Managed Programs also had interests in 166 operating properties, totaling approximately 20.2 million square feet in the aggregate. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair statement of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 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 September 30, 2017 , we considered 28 entities to be VIEs, 21 of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2017 December 31, 2016 (a) Land, buildings and improvements $ 910,495 $ 886,148 Net investments in direct financing leases 39,897 60,294 In-place lease and other intangible assets 265,852 245,480 Above-market rent intangible assets 102,432 98,043 Accumulated depreciation and amortization (231,323 ) (184,710 ) Total assets 1,129,154 1,150,093 Non-recourse mortgages, net $ 128,659 $ 406,574 Total liabilities 202,514 548,659 __________ (a) In 2017, we reclassified certain line items in our consolidated balance sheets, as described below. As a result, prior period amounts for certain line items included within Net investments in real estate have been reclassified to conform to the current period presentation. At September 30, 2017 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments, which we account for under the equity method of accounting, and one unconsolidated entity, which we account for under the cost method of accounting and is included within our Investment Management segment. At December 31, 2016 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments and one unconsolidated entity among our interests in the Managed Programs, all of which we accounted 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 September 30, 2017 and December 31, 2016 , the net carrying amount of our investments in these entities was $152.8 million and $152.9 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. At September 30, 2017 , we had an investment in a tenancy-in-common interest in various underlying international properties. Consolidation of this investment is not required as such interest does not qualify as a VIE and does not meet the control requirement for consolidation. Accordingly, we account for this investment using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of this investment. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments, nor do we have any legal obligation to fund operating deficits. At September 30, 2017 , none of our equity investments had carrying values below zero. On April 20, 2016, we formed a limited partnership, CESH I, for the purpose of developing, owning, and operating student housing properties and similar investments in Europe. CESH I commenced fundraising in July 2016 through a private placement with an initial offering of $100.0 million and a maximum offering of $150.0 million . Prior to August 30, 2016, which is the date that we had collected $14.2 million of net proceeds on behalf of CESH I from limited partnership units issued in the private placement (primarily to independent investors), we had included CESH I’s financial results and balances in our consolidated financial statements. On August 31, 2016, we determined that CESH I had sufficient equity to finance its operations and that we were no longer considered the primary beneficiary, and as a result we deconsolidated CESH I and began to account for our interest in it at fair value by electing the equity method fair value option available under GAAP. As of August 31, 2016, CESH I had assets totaling $30.3 million on our consolidated balance sheet, including $15.4 million in Cash and cash equivalents and $14.9 million in Other assets, net. In connection with the deconsolidation, we recorded offsetting amounts of $14.2 million for the nine months ended September 30, 2016 in Contributions from noncontrolling interests and Deconsolidation of affiliate in the consolidated statements of equity, and in Proceeds from limited partnership units issued by affiliate and Deconsolidation of affiliate in the consolidated statements of cash flows. We recognized a gain on deconsolidation of $1.9 million , which is included in Other income and (expenses) in the consolidated statements of income for the three and nine months ended September 30, 2016 . The deconsolidation did not have a material impact on our financial position or results of operations. Following the deconsolidation, we continue to serve as the advisor to CESH I ( Note 3 ). Out-of-Period Adjustments During the second quarter of 2016, we identified and recorded out-of-period adjustments related to adjustments to prior period income tax returns. We concluded that these adjustments were not material to our consolidated financial statements for any of the current or prior periods presented. The net adjustment is reflected as a $3.0 million reduction of our Benefit from income taxes in the consolidated statements of income for the nine months ended September 30, 2016 . Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. In 2017, we reclassified in-place lease intangible assets, net, below-market ground lease intangible assets, net (previously included in Other assets, net), and above-market rent 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. We also retitled the line item Real estate to Land, buildings and improvements in our consolidated balance sheets. In addition, we included the line item Operating real estate, which had previously appeared in our consolidated balance sheets, within Land, buildings and improvements in our consolidated balance sheets. Prior period balances have been reclassified to conform to the current period presentation. As a result of our Board’s decision to exit all non-traded retail fundraising activities as of June 30, 2017 ( Note 1 ), we have revised how we view and present a component of our two reportable segments. As such, effective since the second quarter of 2017, we include (i) equity in earnings of equity method investments in the Managed Programs and (ii) equity investments in the Managed Programs in our Investment Management segment. Results of operations and assets by segment for prior periods have been reclassified to conform to the current period presentation. In connection with our adoption of Accounting Standards Update, or ASU, 2016-09, Improvements to Employee Share-Based Payment Accounting , as described below, we retrospectively reclassified Payments for withholding taxes upon delivery of equity-based awards and exercises of stock options from Net cash provided by operating activities to Net cash used in financing activities within our consolidated statements of cash flows. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will primarily apply to revenues generated from our operating properties and our Investment Management business. We will adopt this guidance for our interim and annual 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. In addition, it also requires lessors to record gross revenues and expenses associated with activities that do not transfer services to the lessee (such as real estate taxes and insurance). Additionally, the new standard requires extensive quantitative and qualitative disclosures. 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. We will adopt this guidance for our interim and annual periods beginning January 1, 2019. 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 March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 amends Accounting Standards Codification, or ASC, Topic 718, Compensation-Stock Based Compensation to simplify various aspects of how share-based payments are accounted for and presented in the financial statements including (i) reflecting income tax effects of share-based payments through the income statement, (ii) allowing statutory tax withholding requirements at the employees’ maximum individual tax rate without requiring awards to be classified as liabilities, and (iii) permitting an entity to make an accounting policy election for the impact of forfeitures on the recognition of expense. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. We adopted ASU 2016-09 as of January 1, 2017 and elected to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures. This election was adopted using a modified retrospective transition method, with a cumulative effect adjustment to retained earnings. The related financial statement impact of this adjustment is not material. Depending on several factors, such as the market price of our common stock, employee stock option exercise behavior, and corporate income tax rates, the excess tax benefits associated with the exercise of stock options and the vesting and delivery of restricted share awards, or RSAs, restricted share units, or RSUs, and performance share units, or PSUs, could generate a significant income tax benefit in a particular interim period, potentially creating volatility in Net income attributable to W. P. Carey and basic and diluted earnings per share between interim periods. Under the former accounting guidance, windfall tax benefits related to stock-based compensation were recognized within Additional paid-in capital in our consolidated financial statements. Under ASU 2016-09, these amounts are reflected as a reduction to Provision for income taxes. For reference, windfall tax benefits related to stock-based compensation recorded in Additional paid-in capital for the years ended December 31, 2016 and 2015 were $6.7 million and $12.5 million , respectively. Windfall tax benefits related to stock-based compensation recorded as a deferred tax benefit for the three and nine months ended September 30, 2017 were $0.6 million and $3.6 million , respectively. 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 retrospectively 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 retrospectively 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 in the process of evaluating the impact of ASU 2017-05 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when to account for a change to the terms and conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 will be effective 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 2017-09 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Advisory Agreements with the Managed Programs We have advisory agreements with each of the Managed Programs, pursuant to which we earn fees and are entitled to receive reimbursement for fund management expenses, as well as cash distributions. The advisory agreements also entitled us to fees for serving as the dealer manager of the offerings of the Managed Programs. However, as previously noted, as of June 30, 2017, we ceased all active non-traded retail fundraising activities. We facilitated the orderly processing of sales of shares of the common stock and limited partnership units of CWI 2 and CESH I, respectively, through July 31, 2017 and closed their respective offerings on that date, and as a result, stopped receiving dealer manager fees after that date. In addition, in August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017, and as a result, we no longer earned any fees from CCIF after that date. We currently expect to continue to manage all existing Managed Programs through the end of their respective natural life cycles ( Note 1 ). The advisory agreements with each of the Managed REITs have terms of one year, may be renewed for successive one-year periods, and are currently scheduled to expire on December 31, 2017, unless otherwise renewed. The advisory agreement with CESH I, which commenced June 3, 2016, will continue until terminated pursuant to its terms. The following tables present a summary of revenue earned and/or cash received from the Managed Programs for the periods indicated, included in the consolidated financial statements. Asset management revenue excludes amounts received from third parties (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Asset management revenue $ 17,938 $ 15,955 $ 53,271 $ 45,535 Distributions of Available Cash 12,047 10,876 34,568 32,018 Structuring revenue 9,817 12,301 27,981 30,990 Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 Interest income on deferred acquisition fees and loans to affiliates 447 130 1,464 492 Dealer manager fees 105 1,835 4,430 5,379 Other advisory revenue 99 522 896 522 $ 46,664 $ 56,159 $ 168,000 $ 161,308 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 CPA ® :17 – Global $ 15,383 $ 16,616 $ 55,645 $ 51,820 CPA ® :18 – Global 4,042 5,259 18,361 22,851 CWI 1 11,940 7,771 26,051 26,453 CWI 2 11,643 19,924 45,206 49,233 CCIF 1,787 3,388 12,777 7,750 CESH I 1,869 3,201 9,960 3,201 $ 46,664 $ 56,159 $ 168,000 $ 161,308 The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): September 30, 2017 December 31, 2016 Short-term loans to affiliates, including accrued interest $ 132,210 $ 237,613 Deferred acquisition fees receivable, including accrued interest 10,720 21,967 Accounts receivable 5,358 5,005 Reimbursable costs 3,943 4,427 Current acquisition fees receivable 1,508 8,024 Asset management fees receivable 539 2,449 Organization and offering costs 58 784 Distribution and shareholder servicing fees — 19,341 $ 154,336 $ 299,610 Asset Management Revenue Under the advisory agreements with the Managed Programs, we earn asset management revenue for managing their investment portfolios. The following table presents a summary of our asset management fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA ® :17 – Global 0.5% – 1.75% 2016 50% in cash and 50% in shares of its common stock; 2017 in shares of its common stock Rate depends on the type of investment and is based on the average market or average equity value, as applicable CPA ® :18 – Global 0.5% – 1.5% In shares of its Class A common stock Rate depends on the type of investment and is based on the average market or average equity value, as applicable CWI 1 0.5% 2016 in cash; 2017 in shares of its common stock Rate is based on the average market value of the investment; we are required to pay 20% of the asset management revenue we receive to the subadvisor CWI 2 0.55% In shares of its Class A common stock Rate is based on the average market value of the investment; we are required to pay 25% of the asset management revenue we receive to the subadvisor CCIF 1.75% – 2.00% In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Based on the average of gross assets at fair value; we were required to pay 50% of the asset management revenue we received to the subadvisor CESH I 1.0% In cash Based on gross assets at fair value Structuring Revenue Under the terms of the advisory agreements with the Managed Programs, we earn revenue for structuring and negotiating investments and related financing. We did not earn any structuring revenue from the Managed BDCs. The following table presents a summary of our structuring fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA ® :17 – Global 1% – 1.75%, 4.5% In cash; for non net-lease investments, 1% – 1.75% upon completion; for net-lease investments, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the net-lease investments made; also based on the total aggregate cost of the non net-lease investments or commitments made; total limited to 6% of the contract prices in aggregate CPA ® :18 – Global 4.5% In cash; for all investments, other than readily marketable real estate securities for which we will not receive any acquisition fees, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the investments or commitments made; total limited to 6% of the contract prices in aggregate CWI REITs 2.5% In cash upon completion; however, fees were paid 50% in cash and 50% in shares of CWI 1’s common stock and CWI 2’s Class A common stock for a jointly-owned investment structured on behalf of CWI 1 and CWI 2 in September 2017, with the approval of each CWI REIT’s board of directors Based on the total aggregate cost of the lodging investments or commitments made; loan refinancing transactions up to 1% of the principal amount; we are required to pay 20% and 25% to the subadvisors of CWI 1 and CWI 2, respectively; total for each CWI REIT limited to 6% of the contract prices in aggregate CESH I 2.0% In cash upon completion Based on the total aggregate cost of investments or commitments made, including the acquisition, development, construction, or re-development of the investments Reimbursable Costs from Affiliates During their respective offering periods, the Managed Programs reimbursed us for certain costs that we incurred on their behalf, which consisted primarily of broker-dealer commissions, marketing costs, and an annual distribution and shareholder servicing fee, as applicable. The offerings for CWI 2 and CESH I closed on July 31, 2017. The Managed Programs will continue to reimburse us for certain personnel and overhead costs that we incur on their behalf. The following tables present summaries of such fee arrangements: Broker-Dealer Selling Commissions Managed Program Rate Payable Description CWI 2 Class A Shares January 1, 2016 through March 31, 2017: $0.70 April 27, 2017 through July 31, 2017: $0.84 (a) In cash upon share settlement; 100% re-allowed to broker-dealers Per share sold CWI 2 Class T Shares January 1, 2016 through March 31, 2017: $0.19 April 27, 2017 through July 31, 2017: $0.23 (a) In cash upon share settlement; 100% re-allowed to broker-dealers Per share sold CCIF Feeder Funds Through September 10, 2017: 0% – 3% (b) In cash upon share settlement; 100% re-allowed to broker-dealers Based on the selling price of each share sold; the offering for Carey Credit Income Fund 2016 T (known as Guggenheim Credit Income Fund 2016 T since October 23, 2017), or CCIF 2016 T, closed on April 28, 2017 CESH I Up to 7.0% of gross offering proceeds (a) In cash upon limited partnership unit settlement; 100% re-allowed to broker-dealers Based on the selling price of each limited partnership unit sold __________ (a) After the end of active fundraising by Carey Financial on June 30, 2017, we facilitated the orderly processing of sales in the offerings of CWI 2 and CESH I through July 31, 2017, which then closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. Dealer Manager Fees Managed Program Rate Payable Description CWI 2 Class A Shares January 1, 2016 through March 31, 2017: $0.30 April 27, 2017 through July 31, 2017: $0.36 (a) Per share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers CWI 2 Class T Shares January 1, 2016 through March 31, 2017: $0.26 April 27, 2017 through July 31, 2017: $0.31 (a) Per share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers CCIF Feeder Funds Through September 10, 2017: 2.50% – 3.0% (b) Based on the selling price of each share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers; CCIF 2016 T’s offering closed on April 28, 2017 CESH I Up to 3.0% of gross offering proceeds (a) Per limited partnership unit sold In cash upon limited partnership unit settlement; a portion may be re-allowed to broker-dealers __________ (a) In connection with the end of active fundraising by Carey Financial on June 30, 2017, CWI 2 and CESH I facilitated the orderly processing of sales through July 31, 2017 and closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. Annual Distribution and Shareholder Servicing Fee Managed Program Rate Payable Description CPA ® :18 – Global Class C Shares (a) 1.0% Accrued daily and payable quarterly in arrears in cash; a portion may be re-allowed to selected dealers Based on the purchase price per share sold or, once it was reported, the net asset value per share, or NAV; cease paying when underwriting compensation from all sources equals 10% of gross offering proceeds CWI 2 Class T Shares (a) 1.0% Accrued daily and payable quarterly in arrears in cash; a portion may be re-allowed to selected dealers Based on the purchase price per share sold or, once it was reported, the NAV; cease paying on the earlier of six years or when underwriting compensation from all sources equals 10% of gross offering proceeds CCIF 2016 T (b) 0.9% Payable quarterly in arrears in cash; 100% is re-allowed to selected dealers Based on the weighted-average net price of shares sold in the public offering; cease paying on the earlier of when underwriting compensation from all sources equals, including this fee, 10% of gross offering proceeds or the date at which a liquidity event occurs __________ (a) In connection with our exit from all non-traded retail fundraising activities as of June 30, 2017, beginning with the payment for the third quarter of 2017 (which was made during the fourth quarter of 2017), the distribution and shareholder servicing fee is now paid directly to selected dealers by the respective funds. As a result, our liability to the selected dealers and the corresponding receivable from the funds were removed during the third quarter of 2017. (b) In connection with our resignation as advisor to CCIF in August 2017, our dealer manager agreement was assigned to Guggenheim. As a result, our liability to the selected dealers and the corresponding receivable from CCIF was removed. Personnel and Overhead Costs Managed Program Payable Description CPA ® :17 – Global and CPA ® :18 – Global In cash Personnel and overhead costs, excluding those related to our legal transactions group, our senior management, and our investments team, are charged to the CPA ® REITs based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and are capped at 2.0% and 2.2% of each CPA ® REIT’s pro rata lease revenues for 2017 and 2016, respectively; for the legal transactions group, costs are charged according to a fee schedule CWI 1 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CWI 2 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CCIF and CCIF Feeder Funds In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Actual expenses incurred, excluding those related to their investment management team and senior management team CESH I In cash Actual expenses incurred Organization and Offering Costs Managed Program Payable Description CWI 2 (a) In cash; within 60 days after the end of the quarter in which the offering terminates Actual costs incurred up to 1.5% of the gross offering proceeds CCIF and CCIF Feeder Funds (b) In cash; payable monthly, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Up to 1.5% of the gross offering proceeds; we were required to pay 50% of the organization and offering costs we received to the subadvisor CESH I (a) N/A In lieu of reimbursing us for organization and offering costs, CESH I paid us limited partnership units, as described below under Other Advisory Revenue __________ (a) In connection with the end of active fundraising by Carey Financial on June 30, 2017, CWI 2 and CESH I facilitated the orderly processing of sales through July 31, 2017 and closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. Other Advisory Revenue Under the limited partnership agreement we have with CESH I, we paid all organization and offering costs on behalf of CESH I, and instead of being reimbursed by CESH I on a dollar-for-dollar basis for those costs, we received limited partnership units of CESH I equal to 2.5% of its gross offering proceeds. This revenue, which commenced in the third quarter of 2016, is included in Other advisory revenue in the consolidated statements of income and totaled $0.1 million and $0.7 million for the three and nine months ended September 30, 2017 , respectively, and $0.5 million for both the three and nine months ended September 30, 2016 , respectively. In connection with the end of active non-traded retail fundraising by Carey Financial on June 30, 2017, we facilitated the orderly processing of sales of CESH I through July 31, 2017, which closed its offering on that date. Expense Support and Conditional Reimbursements Under the expense support and conditional reimbursement agreement we had with each of the CCIF Feeder Funds, we and the CCIF subadvisor were obligated to reimburse the CCIF Feeder Funds 50% of the excess of the cumulative distributions paid to the CCIF Feeder Funds’ shareholders over the available operating funds on a monthly basis. Following any month in which the available operating funds exceeded the cumulative distributions paid to its shareholders, the excess operating funds were used to reimburse us and the CCIF subadvisor for any expense payment we made within three years prior to the last business day of such month that had not been previously reimbursed by the CCIF Feeder Fund, up to the lesser of (i) 1.75% of each CCIF Feeder Fund’s average net assets or (ii) the percentage of each CCIF Feeder Fund’s average net assets attributable to its common shares represented by other operating expenses during the fiscal year in which such expense support payment from us and the CCIF’s subadvisor was made, provided that the effective rate of distributions per share at the time of reimbursement was not less than such rate at the time of expense payment. The expense support and conditional reimbursement agreement we had with each of the CCIF Feeder Funds was terminated in connection with our resignation as the advisor to CCIF effective as of September 11, 2017. Distributions of Available Cash We are entitled to receive distributions of up to 10% of the Available Cash (as defined in the respective advisory agreements) from the operating partnerships of each of the Managed REITs, as described in their respective operating partnership agreements, payable quarterly in arrears. We are required to pay 20% and 25% of such distributions to the subadvisors of CWI 1 and CWI 2, respectively. Back-End Fees and Interests in the Managed Programs Under our advisory agreements with certain of the Managed Programs, we may also receive compensation in connection with providing liquidity events for their stockholders. For the Managed REITs, the timing and form of such liquidity events are at the discretion of each REIT’s board of directors, and in certain instances, we have waived these fees in connection with the liquidity events of prior programs that we managed. Therefore, there can be no assurance as to whether or when any of these back-end fees or interests will be realized. Other Transactions with Affiliates Loans to Affiliates From time to time, our Board has approved the making of secured and unsecured loans from us to certain of the Managed Programs, at our sole discretion, with each loan at a rate equal to the rate at which we are able to borrow funds under our senior credit facility ( Note 10 ), generally for the purpose of facilitating acquisitions or for working capital purposes. The following table sets forth certain information regarding our loans to affiliates (dollars in thousands): Interest Rate at Maturity Date at September 30, 2017 Maximum Loan Amount Authorized at September 30, 2017 Principal Outstanding Balance at (a) Managed Program September 30, 2017 December 31, 2016 CWI 1 (b) (c) (d) LIBOR + 1.00% 6/30/2018; 12/31/2018 $ 100,000 $ 97,835 $ — CPA ® :18 – Global (b) (e) LIBOR + 1.00% 10/31/2017; 5/15/2018 50,000 19,000 27,500 CESH I (b) LIBOR + 1.00% 5/3/2018; 5/9/2018 35,000 14,461 — CWI 2 (f) N/A N/A N/A — 210,000 $ 131,296 $ 237,500 __________ (a) Amounts exclude accrued interest of $0.9 million and $0.1 million at September 30, 2017 and December 31, 2016 , respectively. (b) LIBOR means London Interbank Offered Rate. (c) We entered into a secured credit facility with CWI 1 in September 2017, comprised of a $75.0 million bridge loan to facilitate an acquisition and a $25.0 million revolving working capital facility. (d) In October 2017, CWI 1 repaid $29.2 million , in aggregate, of the loans outstanding to us at September 30, 2017 ( Note 17 ). (e) In October 2017, CPA ® :18 – Global repaid in full the amount outstanding to us at September 30, 2017 ( Note 17 ). (f) In October 2017, we entered into a secured $25.0 million revolving working capital facility with CWI 2 ( Note 17 ). Other At September 30, 2017 , we owned interests ranging from 3% to 90% in jointly owned investments in real estate, including a jointly controlled tenancy-in-common interest in several properties, with the remaining interests generally held by affiliates. In addition, we owned stock of each of the Managed REITs and CCIF, and limited partnership units of CESH I. We consolidate certain of these investments and account for the remainder either (i) under the equity method of accounting, (ii) under the cost method of accounting, or (iii) at fair value by electing the equity method fair value option available under GAAP ( Note 7 ). |
Land, Building and Improvements
Land, Building and Improvements and Assets Held for Sale | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Land, Buildings and Improvements and Assets Held for Sale | Land, Buildings and Improvements and Assets Held for Sale Land, Buildings and Improvements — Operating Leases Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Land $ 1,132,569 $ 1,128,933 Buildings 4,194,213 4,053,334 Real estate under construction 20,373 21,859 Less: Accumulated depreciation (578,592 ) (472,294 ) $ 4,768,563 $ 4,731,832 During the nine months ended September 30, 2017 , the U.S. dollar weakened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro increased by 12.0% to $1.1806 from $1.0541 . As a result of this fluctuation in foreign exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases increased by $160.5 million from December 31, 2016 to September 30, 2017 . Depreciation expense, including the effect of foreign currency translation, on our Land, buildings and improvements subject to operating leases was $36.3 million and $35.4 million for the three months ended September 30, 2017 and 2016 , respectively, and $107.5 million and $107.3 million for the nine months ended September 30, 2017 and 2016 , respectively. Accumulated depreciation of real estate is included in Accumulated depreciation and amortization in the consolidated financial statements. In connection with changes in lease classifications due to extensions of the underlying leases, we reclassified six properties with an aggregate carrying value of $1.6 million from Net investments in direct financing leases to Land, buildings and improvements during the nine months ended September 30, 2017 ( Note 5 ). Acquisition of Real Estate On June 27, 2017, we acquired an industrial facility in Chicago, Illinois, which was deemed to be a real estate asset acquisition, at a total cost of $6.0 million , including land of $2.2 million , building of $2.5 million , and an in-place lease intangible asset of $1.3 million ( Note 6 ). We also committed to fund an additional $3.6 million of building improvements at that facility by June 2018. Real Estate Under Construction During the nine months ended September 30, 2017 , we capitalized real estate under construction totaling $43.5 million , including net accrual activity of $6.8 million , primarily related to construction projects on our properties. As of September 30, 2017 , we had five construction projects in progress, and as of December 31, 2016 , we had three construction projects in progress. Aggregate unfunded commitments totaled approximately $109.6 million and $135.2 million as of September 30, 2017 and December 31, 2016 , respectively. During the nine months ended September 30, 2017 , we capitalized and completed the following construction projects, at a total cost of $59.0 million , of which $35.5 million was capitalized during 2016: • an expansion project at an industrial facility in Windsor, Connecticut in March 2017 at a cost totaling $3.3 million ; • an expansion project at an educational facility in Coconut Creek, Florida in May 2017 at a cost totaling $18.2 million ; • an expansion project at two industrial facilities in Monarto, Australia in May 2017 at a cost totaling $15.9 million ; and • a build-to-suit project for an industrial facility in McCalla, Alabama in June 2017 at a cost totaling $21.6 million . Dispositions of Properties During the nine months ended September 30, 2017 , we sold nine properties and a parcel of vacant land, excluding the sale of one property that was classified as held for sale as of December 31, 2016 , and transferred ownership of two properties to the related mortgage lender ( Note 15 ). As a result, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $72.4 million from December 31, 2016 to September 30, 2017 . Future Dispositions of Properties As of September 30, 2017 , two tenants exercised options to repurchase the properties they are leasing from us in accordance with their lease agreements for an aggregate of $23.1 million (the amount for one repurchase is based on the exchange rate of the euro as of September 30, 2017 ), but there can be no assurance that such repurchases will be completed. At September 30, 2017 , these two properties had an aggregate asset carrying value of $17.5 million . Land, Buildings and Improvements — Operating Properties At both September 30, 2017 and December 31, 2016 , Land, buildings and improvements attributable to operating properties consisted of our investments in two hotels, which are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Land $ 6,041 $ 6,041 Buildings 76,043 75,670 Less: Accumulated depreciation (15,345 ) (12,143 ) $ 66,739 $ 69,568 Depreciation expense on our Land, buildings and improvements attributable to operating properties was $1.1 million for both the three months ended September 30, 2017 and 2016 , and $3.2 million for both the nine months ended September 30, 2017 and 2016 . Accumulated depreciation of Land, buildings and improvements attributable to operating properties is included in Accumulated depreciation and amortization in the consolidated financial statements. Assets Held for Sale Below is a summary of our properties held for sale (in thousands): September 30, 2017 December 31, 2016 Real estate, net $ 6,146 $ — Intangible assets, net 4,450 — Net investments in direct financing leases — 26,247 Assets held for sale $ 10,596 $ 26,247 At September 30, 2017 , we had one property classified as Assets held for sale with a carrying value of $10.6 million . At December 31, 2016 , we had one property classified as Assets held for sale with a carrying value of $26.2 million . In addition, there was a deferred tax liability of $2.5 million related to this property as of December 31, 2016 , which is included in Deferred income taxes in the consolidated balance sheets. The property was sold during the nine months ended September 30, 2017 ( Note 15 ). |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 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, note receivable, and deferred acquisition fees. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated financial statements. Net Investments in Direct Financing Leases Interest income from direct financing leases, which was included in Lease revenues in the consolidated financial statements, was $16.8 million and $17.6 million for the three months ended September 30, 2017 and 2016 , respectively, and $49.3 million and $53.9 million for the nine months ended September 30, 2017 and 2016 , respectively. During the nine months ended September 30, 2017 , the U.S. dollar weakened against the euro, resulting in a $38.9 million increase in the carrying value of Net investments in direct financing leases from December 31, 2016 to September 30, 2017 . During the nine months ended September 30, 2017 , we sold an international investment accounted for as a direct financing lease that had a net carrying value of $1.7 million . During the nine months ended September 30, 2017 , we reclassified six properties with a carrying value of $1.6 million from Net investments in direct financing leases to Land, buildings and improvements in connection with changes in lease classifications due to extensions of the underlying leases ( Note 4 ). Note Receivable At September 30, 2017 and December 31, 2016 , we had a note receivable with an outstanding balance of $10.1 million and $10.4 million , respectively, representing the expected future payments under a sales type lease, which was included in Other assets, net in the consolidated financial statements. Earnings from our note receivable are included in Lease termination income and other in the consolidated financial statements. Deferred Acquisition Fees Receivable As described in Note 3 , we earn revenue in connection with structuring and negotiating investments and related mortgage financing for the CPA ® REITs. A portion of this revenue is due in equal annual installments over three years, provided the CPA ® REITs meet their respective performance criteria. Unpaid deferred installments, including accrued interest, from the CPA ® REITs were included in Due from affiliates in the consolidated financial statements. Credit Quality of Finance Receivables We generally seek investments in facilities that we believe are critical to a tenant’s business and that we believe have a low risk of tenant default. As of December 31, 2016 , we had an allowance for credit losses of $13.3 million on a single direct financing lease investment, including the impact of foreign currency translation. This allowance was established in the fourth quarter of 2015. During the nine months ended September 30, 2016 , we increased the allowance by $7.1 million , which was recorded in Property expenses, excluding reimbursable tenant costs in the consolidated financial statements, due to a decline in the estimated amount of future payments we would receive from the tenant. We sold this direct financing lease investment in August 2017, as described above. At both September 30, 2017 and December 31, 2016 , none of the balances of our finance receivables were past due. There were no modifications of finance receivables during the nine months ended September 30, 2017 . We evaluate the credit quality of our finance receivables utilizing an internal five -point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables was last updated in the third quarter of 2017. We believe the credit quality of our deferred acquisition fees receivable falls under category one , as the CPA ® REITs are expected to have the available cash to make such payments. A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 1 - 3 24 27 $ 604,081 $ 621,955 4 8 5 123,173 70,811 5 — 1 — 1,644 $ 727,254 $ 694,410 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from three years to 40 years . In addition, we have several ground lease intangibles that are being amortized over periods of up to 99 years . In-place lease and below-market ground lease (as lessee) intangibles, at cost are included in In-place lease and other intangible assets in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease, below-market ground lease (as lessee), and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent, above-market ground lease (as lessee), and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. In connection with our investment activity during the nine months ended September 30, 2017 ( Note 4 ), we recorded an in-place lease intangible asset of $1.3 million , which has an expected life of 21 years . Goodwill within our Owned Real Estate segment increased by $7.4 million during the nine months ended September 30, 2017 due to foreign currency translation adjustments, from $572.3 million as of December 31, 2016 to $579.7 million as of September 30, 2017 . Goodwill within our Investment Management segment was $63.6 million as of September 30, 2017 , unchanged from December 31, 2016 . In connection with our Board’s decision to exit all non-traded retail fundraising activities ( Note 1 ), we performed a test for impairment during the second quarter of 2017 on goodwill recorded in our Investment Management segment, and no impairment was indicated. Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 18,649 $ (7,159 ) $ 11,490 $ 18,568 $ (5,068 ) $ 13,500 Trade name 3,975 (200 ) 3,775 3,975 — 3,975 22,624 (7,359 ) 15,265 22,543 (5,068 ) 17,475 Lease Intangibles: In-place lease 1,185,107 (398,237 ) 786,870 1,148,232 (322,119 ) 826,113 Above-market rent 639,140 (255,152 ) 383,988 632,383 (210,927 ) 421,456 Below-market ground lease 18,693 (1,698 ) 16,995 23,140 (1,381 ) 21,759 1,842,940 (655,087 ) 1,187,853 1,803,755 (534,427 ) 1,269,328 Indefinite-Lived Goodwill and Intangible Assets Goodwill 643,321 — 643,321 635,920 — 635,920 Below-market ground lease 970 — 970 866 — 866 644,291 — 644,291 636,786 — 636,786 Total intangible assets $ 2,509,855 $ (662,446 ) $ 1,847,409 $ 2,463,084 $ (539,495 ) $ 1,923,589 Finite-Lived Intangible Liabilities Below-market rent $ (136,319 ) $ 46,377 $ (89,942 ) $ (133,137 ) $ 38,231 $ (94,906 ) Above-market ground lease (13,206 ) 2,879 (10,327 ) (12,948 ) 2,362 (10,586 ) (149,525 ) 49,256 (100,269 ) (146,085 ) 40,593 (105,492 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (166,236 ) $ 49,256 $ (116,980 ) $ (162,796 ) $ 40,593 $ (122,203 ) Net amortization of intangibles, including the effect of foreign currency translation, was $38.4 million and $38.1 million for the three months ended September 30, 2017 and 2016 , respectively, and $114.1 million and $125.6 million for the nine months ended September 30, 2017 and 2016 , respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues; amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization; and amortization of above-market ground lease and below-market ground lease intangibles is included in Property expenses, excluding reimbursable tenant costs. |
Equity Investments in the Manag
Equity Investments in the Managed Programs and Real Estate | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in the Managed Programs and Real Estate | Equity Investments in the Managed Programs and Real Estate We own interests in certain unconsolidated real estate investments with the Managed Programs and also own interests in the Managed Programs. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences) or at fair value by electing the equity method fair value option available under GAAP. The following table presents Equity in earnings of equity method investments in the Managed Programs and real estate, which represents our proportionate share of the income or losses of these investments, as well as certain adjustments related to amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Distributions of Available Cash ( Note 3 ) $ 12,047 $ 10,876 $ 34,568 $ 32,018 Proportionate share of equity in earnings of equity investments in the Managed Programs 886 2,962 4,688 7,396 Amortization of basis differences on equity method investments in the Managed Programs (355 ) (265 ) (969 ) (756 ) Total equity in earnings of equity method investments in the Managed Programs 12,578 13,573 38,287 38,658 Equity in earnings of equity method investments in real estate 4,244 4,197 11,404 12,456 Amortization of basis differences on equity method investments in real estate (504 ) (967 ) (1,871 ) (2,871 ) Total equity in earnings of equity method investments in real estate 3,740 3,230 9,533 9,585 Equity in earnings of equity method investments in the Managed Programs and real estate $ 16,318 $ 16,803 $ 47,820 $ 48,243 Managed Programs We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor and through our ownership of their common stock, we do not exert control over, but we do have the ability to exercise significant influence on, the Managed Programs. Operating results of the Managed Programs are included in the Investment Management segment. The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 CPA ® :17 – Global 3.996 % 3.456 % $ 120,464 $ 99,584 CPA ® :17 – Global operating partnership 0.009 % 0.009 % — — CPA ® :18 – Global 2.298 % 1.616 % 25,812 17,955 CPA ® :18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 1.882 % 1.109 % 23,351 11,449 CWI 1 operating partnership 0.015 % 0.015 % 186 — CWI 2 1.541 % 0.773 % 14,171 5,091 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CCIF (a) — % 13.322 % — 23,528 CESH I (b) 2.430 % 2.431 % 3,110 2,701 $ 187,603 $ 160,817 __________ (a) In August 2017, we resigned as the advisor to CCIF, effective as of September 11, 2017 ( Note 1 ). As such, we reclassified our investment in CCIF from Equity investments in the Managed Programs and real estate to Other assets, net in our consolidated balance sheets and account for it under the cost method, since we no longer share decision-making responsibilities with the third-party investment partner. Our cost method investment in CCIF had a carrying value of $23.3 million at September 30, 2017 and is included in our Investment Management segment. (b) Investment is accounted for at fair value. CPA ® :17 – Global — The c arrying value of our investment in CPA ® :17 – Global at September 30, 2017 includes asset management fees receivable, for which 243,250 shares of CPA ® :17 – Global common stock were issued during the fourth quarter of 2017 . We received distributions from this investment during the nine months ended September 30, 2017 and 2016 of $6.1 million and $5.5 million , respectively. We received distributions from our investment in the CPA ® :17 – Global operating partnership during the nine months ended September 30, 2017 and 2016 of $19.2 million and $17.8 million , respectively. CPA ® :18 – Global — The c arrying value of our investment in CPA ® :18 – Global at September 30, 2017 includes asset management fees receivable, for which 117,416 shares of CPA ® :18 – Global Class A common stock were issued during the fourth quarter of 2017 . We received distributions from this investment during the nine months ended September 30, 2017 and 2016 of $1.2 million and $0.6 million , respectively. We received distributions from our investment in the CPA ® :18 – Global operating partnership during the nine months ended September 30, 2017 and 2016 of $6.1 million and $5.3 million , respectively. CWI 1 — The c arrying value of our investment in CWI 1 at September 30, 2017 includes asset management fees receivable, for which 110,715 shares of CWI 1 common stock were issued during the fourth quarter of 2017 . We received distributions from this investment during the nine months ended September 30, 2017 and 2016 of $0.8 million and $0.6 million , respectively. We received distributions from our investment in the CWI 1 operating partnership during the nine months ended September 30, 2017 and 2016 of $5.7 million and $6.9 million , respectively. CWI 2 — The carrying value of our investment in CWI 2 at September 30, 2017 includes asset management fees receivable, for which 68,367 shares of CWI 2 Class A common stock were issued during the fourth quarter of 2017 . We received distributions from this investment during the nine months ended September 30, 2017 and 2016 of $0.2 million and less than $0.1 million , respectively. We received distributions from our investment in the CWI 2 operating partnership during the nine months ended September 30, 2017 and 2016 of $3.5 million and $2.0 million , respectively. CCIF — We received distributions from this investment during the nine months ended September 30, 2017 and 2016 of $0.9 million and $0.6 million , respectively. Following our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ), and the reclassification of our investment in CCIF from Equity investments in the Managed Programs and real estate to Other assets, net in our consolidated balance sheets (as described above), distributions of earnings from CCIF are recorded within Other income and (expenses) in the consolidated financial statements. CESH I — Under the limited partnership agreement we have with CESH I, we paid all organization and offering costs on behalf of CESH I, and instead of being reimbursed by CESH I on a dollar-for-dollar basis for those costs, we received limited partnership units of CESH I equal to 2.5% of its gross offering proceeds. In connection with the end of active fundraising by Carey Financial on June 30, 2017, we facilitated the orderly processing of sales in the CESH I offering through July 31, 2017, which then closed its offering on that date ( Note 3 ). We have elected to account for our investment in CESH I at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH I on a one quarter lag; therefore, the balance of our equity method investment in CESH I recorded as of September 30, 2017 is based on the estimated fair value of our equity method investment in CESH I as of June 30, 2017 . We did not receive distributions from this investment during the nine months ended September 30, 2017 or 2016 . At September 30, 2017 and December 31, 2016 , the aggregate unamortized basis differences on our equity investments in the Managed Programs were $39.5 million and $31.7 million , respectively. Interests in Other Unconsolidated Real Estate Investments We own equity interests in single-tenant net-leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly owned with affiliates. We account for these investments under the equity method of accounting. Operating results of our unconsolidated real estate investments are included in the Owned Real Estate segment. The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee Co-owner Ownership Interest September 30, 2017 December 31, 2016 The New York Times Company CPA ® :17 – Global 45% $ 69,510 $ 69,668 Frontier Spinning Mills, Inc. CPA ® :17 – Global 40% 24,147 24,138 Beach House JV, LLC (a) Third Party N/A 15,105 15,105 ALSO Actebis GmbH (b) CPA ® :17 – Global 30% 12,072 11,205 Jumbo Logistiek Vastgoed B.V. (b) (c) CPA ® :17 – Global 15% 10,505 8,739 Wagon Automotive GmbH (b) CPA ® :17 – Global 33% 8,323 8,887 Wanbishi Archives Co. Ltd. (d) CPA ® :17 – Global 3% 333 334 $ 139,995 $ 138,076 __________ (a) This investment is in the form of a preferred equity interest. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. The co-obligor is CPA ® :17 – Global and the amount due under the arrangement was approximately $75.4 million at September 30, 2017 . Of this amount, $11.3 million represents the amount we are liable for and is included within the carrying value of the investment at September 30, 2017 . (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the yen. We received aggregate distributions of $12.1 million and $12.4 million from our other unconsolidated real estate investments for the nine months ended September 30, 2017 and 2016 , respectively. At September 30, 2017 and December 31, 2016 , the aggregate unamortized basis differences on our unconsolidated real estate investments were $7.1 million and $6.7 million , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 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. Money Market Funds — Our money market funds, which are included in Cash and cash equivalents in the consolidated financial statements, are comprised of government securities and U.S. Treasury bills. These funds were classified as Level 1 as we used quoted prices from active markets to determine their fair values. Derivative Assets — Our derivative assets, which are included in Other assets, net in the consolidated financial statements, are comprised of foreign currency forward contracts, foreign currency collars, interest rate swaps, interest rate caps, and stock warrants ( Note 9 ). The foreign currency forward contracts, foreign currency collars, interest rate swaps, and interest rate caps were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The stock warrants were measured at fair value using valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market. Derivative Liabilities — Our derivative liabilities, which are included in Accounts payable, accrued expenses and other liabilities in the consolidated financial statements, are comprised of foreign currency collars and interest rate swaps ( Note 9 ). These derivative instruments were measured at fair value using readily observable market inputs, such as quotations on interest rates, and were classified as Level 2 because they are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. Equity Investment in CESH I — We have elected to account for our investment in CESH I at fair value by selecting the equity method fair value option available under GAAP ( Note 7 ). The fair value of our equity investment in CESH I approximated its carrying value as of September 30, 2017 and December 31, 2016 . We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the three or nine months ended September 30, 2017 or 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): September 30, 2017 December 31, 2016 Level Carrying Value Fair Value Carrying Value Fair Value Unsecured Senior Notes, net (a) (b) (c) 2 $ 2,455,383 $ 2,574,990 $ 1,807,200 $ 1,828,829 Non-recourse mortgages, net (a) (b) (d) 3 1,253,051 1,265,075 1,706,921 1,711,364 Note receivable (d) 3 10,070 9,740 10,351 10,046 __________ (a) The carrying value of Unsecured Senior Notes, net ( Note 10 ) includes unamortized deferred financing costs of $15.0 million and $12.1 million at September 30, 2017 and December 31, 2016 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $1.0 million and $1.3 million at September 30, 2017 and December 31, 2016 , respectively. (b) The carrying value of Unsecured Senior Notes, net includes unamortized discount of $10.2 million and $7.8 million at September 30, 2017 and December 31, 2016 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $1.4 million and $0.2 million at September 30, 2017 and December 31, 2016 , respectively. (c) We determined the estimated fair value of the Unsecured Senior Notes using quoted market prices in an open market with limited trading volume, where available. In cases where there was no trading volume, we determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants. (d) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. We estimated that our other financial assets and liabilities (excluding net investments in direct financing leases) had fair values that approximated their carrying values at both September 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 that existed at the time. The valuation of real estate is subject to significant judgment and actual results may differ materially if market conditions or the underlying assumptions change. We did not recognize any impairment charges during the three or nine months ended September 30, 2017 . During the three months ended September 30, 2016 , we recognized impairment charges totaling $14.4 million , including an amount attributable to a noncontrolling interest of $0.6 million , on 18 properties, including a portfolio of 14 properties, in order to reduce the carrying values of the properties to their estimated fair values. The impairment charges recognized on the portfolio of 14 properties were in addition to charges recognized on the portfolio during the six months ended June 30, 2016 (as described below), based on the purchase and sale agreement for the portfolio. The fair value measurements for the properties, which totaled $158.8 million , approximated their estimated selling prices, less estimated costs to sell. We used available information, including third-party broker information and internal discounted cash flow models (Level 3 inputs), in determining the fair value of these properties. The portfolio of 14 properties was sold in October 2016. Of the other four properties, one was sold in December 2016, two were disposed of in January 2017, and one property, which was classified as held for sale as of December 31, 2016, was sold in January 2017. During the nine months ended September 30, 2016 , we recognized impairment charges totaling $49.9 million , including an amount attributable to a noncontrolling interest of $0.6 million , on 18 properties in order to reduce the carrying values of the properties to their estimated fair values. In addition to the impairment charges of $14.4 million recognized during the three months ended September 30, 2016 , described above, we recognized impairment charges totaling $35.4 million on the portfolio of 14 properties during the six months ended June 30, 2016, in order to reduce the carrying values of the properties to their estimated fair values at that time. The fair value measurements for the properties, which totaled $158.8 million , approximated their estimated selling prices, less estimated costs to sell. We used available information, including third-party broker information and internal discounted cash flow models (Level 3 inputs), in determining the fair value of these properties. |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 9 Months Ended |
Sep. 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 our Senior Unsecured Credit Facility and Unsecured Senior Notes ( Note 10 ). Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, as well as changes in the value of our other securities and the shares or limited partnership units we hold in the Managed Programs due to changes in interest rates or other market factors. We own investments in North America, Europe, Australia, 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. The ineffective portion of the change in fair value of any derivative is immediately recognized in earnings. All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both September 30, 2017 and December 31, 2016 , no cash collateral had been posted nor received for any of our derivative positions. The following table sets forth certain information regarding our derivative instruments (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Foreign currency forward contracts Other assets, net $ 15,636 $ 37,040 $ — $ — Foreign currency collars Other assets, net 5,837 17,382 — — Interest rate swaps Other assets, net 227 190 — — Interest rate cap Other assets, net 24 45 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (4,472 ) — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (1,822 ) (2,996 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 3,551 3,752 — — Interest rate swap (a) Other assets, net 14 9 — — Total derivatives $ 25,289 $ 58,418 $ (6,294 ) $ (2,996 ) __________ (a) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) (a) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency collars $ (5,398 ) $ (439 ) $ (16,002 ) $ 3,618 Foreign currency forward contracts (4,752 ) (3,622 ) (16,422 ) (7,830 ) Interest rate swaps 250 961 779 (1,536 ) Interest rate caps (17 ) (29 ) (26 ) (21 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts (1,171 ) (2,200 ) (5,347 ) (3,357 ) Total $ (11,088 ) $ (5,329 ) $ (37,018 ) $ (9,126 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Foreign currency forward contracts Other income and (expenses) $ 1,454 $ 1,773 $ 5,336 $ 5,163 Foreign currency collars Other income and (expenses) 735 654 3,154 1,259 Interest rate swaps and caps Interest expense (286 ) (512 ) (1,024 ) (1,578 ) Total $ 1,903 $ 1,915 $ 7,466 $ 4,844 __________ (a) Excludes net losses of $0.4 million and net gains of less than $0.1 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2017 and 2016 , respectively, and net losses of $0.9 million and $0.2 million for the nine months ended September 30, 2017 and 2016 , respectively. (b) The effective portion of the changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) . 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. As of September 30, 2017 , we estimate that an additional $0.7 million and $7.5 million will be reclassified as interest expense and other income, respectively, during the next 12 months. The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Foreign currency collars Other income and (expenses) $ (225 ) $ 78 $ (718 ) $ 257 Stock warrants Other income and (expenses) 134 335 (201 ) 134 Foreign currency forward contracts Other income and (expenses) (19 ) — (19 ) — Interest rate swaps Other income and (expenses) 2 401 11 2,656 Derivatives in Cash Flow Hedging Relationships Interest rate swaps (a) Interest expense 153 165 455 428 Foreign currency forward contracts Other income and (expenses) (14 ) (55 ) (75 ) 86 Foreign currency collars Other income and (expenses) (13 ) (26 ) (11 ) 12 Total $ 18 $ 898 $ (558 ) $ 3,573 __________ (a) Relates to the ineffective portion of the hedging relationship. See below for information on our purposes for entering into derivative instruments and for information on derivative instruments owned by unconsolidated investments, which are excluded from the tables above. Interest Rate Swaps and Caps We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we attempt to obtain mortgage financing on a long-term, fixed-rate basis. However, from time to time, we or our investment partners may obtain variable-rate, non-recourse mortgage loans and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swaps and caps that our consolidated subsidiaries had outstanding at September 30, 2017 are summarized as follows (currency in thousands): Number of Instruments Notional Amount Fair Value at (a) Interest Rate Derivatives Designated as Cash Flow Hedging Instruments Interest rate swaps 11 104,966 USD $ (1,455 ) Interest rate swap 1 5,813 EUR (140 ) Interest rate cap 1 30,517 EUR 24 Not Designated as Cash Flow Hedging Instruments Interest rate swap (b) 1 2,890 USD 14 $ (1,557 ) __________ (a) Fair value amounts are based on the exchange rate of the euro at September 30, 2017 , as applicable. (b) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. Foreign Currency Contracts and Collars We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling, the Australian dollar, and certain other currencies. 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 at September 30, 2017 , which were designated as cash flow hedges (currency in thousands): Number of Instruments Notional Fair Value at September 30, 2017 Foreign Currency Derivatives Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 25 77,208 EUR $ 12,553 Foreign currency collars 24 40,750 GBP 5,316 Foreign currency collars 24 87,150 EUR (3,951 ) Foreign currency forward contracts 5 2,680 GBP 603 Foreign currency forward contracts 9 11,411 AUD 404 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 3 74,463 AUD 2,076 $ 17,001 Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of September 30, 2017 . At September 30, 2017 , our total credit exposure and the maximum exposure to any single counterparty was $19.9 million and $13.5 million , respectively. Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At September 30, 2017 , we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $6.5 million and $3.3 million at September 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 September 30, 2017 or December 31, 2016 , we could have been required to settle our obligations under these agreements at their aggregate termination value of $6.8 million and $3.3 million , respectively. Net Investment Hedges At September 30, 2017 , the €236.3 million borrowed in euro outstanding under our Amended Term Loan was designated as a net investment hedge ( Note 10 ). Additionally, we have had two issuances of euro-denominated senior notes, each with a principal amount of €500.0 million , which we refer to as the 2.0% Senior Notes and 2.25% Senior Notes ( Note 10 ). These borrowings are designated as, and are effective as, economic hedges of our net investments in foreign entities. Variability in the exchange rates of the foreign currencies with respect to the U.S. dollar impacts our financial results as the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of changes in the foreign currencies to U.S. dollar exchange rates being recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. As a result, the borrowings in euro under our Amended Term Loan, 2.0% Senior Notes, and 2.25% Senior Notes are recorded at cost in the consolidated financial statements and all changes in the value related to changes in the spot rates will be reported in the same manner as a translation adjustment, which is recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. At September 30, 2017 , we also had foreign currency forward contracts that were designated as net investment hedges, as discussed in “Derivative Financial Instruments” above. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Unsecured Credit Facility As of December 31, 2016, we had a senior credit facility that provided for a $1.5 billion unsecured revolving credit facility, or our Unsecured Revolving Credit Facility, and a $250.0 million term loan facility, or our Prior Term Loan, which we refer to collectively as the Senior Unsecured Credit Facility. At December 31, 2016, the Senior Unsecured Credit Facility also permitted (i) up to $750.0 million under our Unsecured Revolving Credit Facility to be borrowed in certain currencies other than the U.S. dollar, (ii) swing line loans up to $50.0 million under our Unsecured Revolving Credit Facility, and (iii) the issuance of letters of credit under our Unsecured Revolving Credit Facility in an aggregate amount not to exceed $50.0 million . On January 26, 2017, we exercised our option to extend our Prior Term Loan by an additional year to January 31, 2018. On February 22, 2017, we amended and restated our Senior Unsecured Credit Facility to increase its capacity to approximately $1.85 billion , which is comprised of $1.5 billion under our Unsecured Revolving Credit Facility, a €236.3 million term loan, or our Amended Term Loan, and a $100.0 million delayed draw term loan, or our Delayed Draw Term Loan. The Delayed Draw Term Loan allows for borrowings in U.S. dollars, euros, or British pounds sterling. We refer to our Prior Term Loan, Amended Term Loan, and Delayed Draw Term Loan collectively as the Unsecured Term Loans. On February 22, 2017, we drew down our Amended Term Loan in full by borrowing €236.3 million (equivalent to $250.0 million ) to repay and terminate our $250.0 million Prior Term Loan. On June 8, 2017, we drew down our Delayed Draw Term Loan in full by borrowing €88.7 million (equivalent to $100.0 million ) to partially pay down the amounts then outstanding under our Unsecured Revolving Credit Facility. The maturity date of the Unsecured Revolving Credit Facility is February 22, 2021. We have two options to extend the maturity date of the Unsecured Revolving Credit Facility by six months, subject to the conditions provided in the Third Amended and Restated Credit Facility dated February 22, 2017, as amended, or the Credit Agreement. The maturity date of both the Amended Term Loan and Delayed Draw Term Loan is February 22, 2022. The Senior Unsecured Credit Facility is being used for working capital needs, for acquisitions, and for other general corporate purposes. The Credit Agreement also permits (i) a sub-limit for up to $1.0 billion under the Unsecured Revolving Credit Facility to be borrowed in certain currencies other than U.S. dollars, (ii) a sub-limit for swing line loans of up to $75.0 million under the Unsecured Revolving Credit Facility, and (iii) a sub-limit for the issuance of letters of credit under the Unsecured Revolving Credit Facility in an aggregate amount not to exceed $50.0 million . The aggregate principal amount (of revolving and term loans) available under the Credit Agreement may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.35 billion , and may be allocated as an increase to the Unsecured Revolving Credit Facility, the Amended Term Loan, or the Delayed Draw Term Loan, or if the Amended Term Loan has been terminated, an add-on term loan, in each case subject to the conditions to increase provided in the Credit Agreement. In connection with the amendment and restatement of our Senior Unsecured Credit Facility, we capitalized deferred financing costs totaling $8.5 million , which is being amortized to Interest expense over the remaining terms of the Unsecured Revolving Credit Facility and Amended Term Loan. At September 30, 2017 , our Unsecured Revolving Credit Facility had unused capacity of $1.3 billion , excluding amounts reserved for outstanding letters of credit. As of September 30, 2017 , our lenders had issued letters of credit totaling $0.1 million on our behalf in connection with certain contractual obligations, which reduce amounts that may be drawn under our Unsecured Revolving Credit Facility by the same amount. We also incur a facility fee of 0.20% of the total commitment on our Unsecured Revolving Credit Facility and a fee of 0.20% on the unused commitments under our Delayed Draw Term Loan prior to the draw or termination of such commitments. The following table presents a summary of our Senior Unsecured Credit Facility (dollars in millions): Interest Rate at (a) Maturity Date at September 30, 2017 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2017 December 31, 2016 Unsecured Term Loans: Amended Term Loan — borrowing in euros (b) (c) EURIBOR + 1.10% 2/22/2022 $ 279.0 $ — Delayed Draw Term Loan — borrowing in euros (c) EURIBOR + 1.10% 2/22/2022 104.7 — Prior Term Loan — borrowing in U.S. dollars (d) N/A N/A — 250.0 383.7 250.0 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 113.0 390.0 Unsecured Revolving Credit Facility — borrowing in euros (c) EURIBOR + 1.00% 2/22/2021 111.2 286.7 224.2 676.7 $ 607.9 $ 926.7 __________ (a) The applicable interest rate at September 30, 2017 was based on the credit rating for our Unsecured Senior Notes of BBB/Baa2 . (b) Balance excludes unamortized deferred financing costs of $0.2 million and unamortized discount of $1.3 million at September 30, 2017 . (c) EURIBOR means Euro Interbank Offered Rate. (d) Balance excludes unamortized deferred financing costs of less than $0.1 million at December 31, 2016 . Unsecured Senior Notes As set forth in the table below, we have unsecured senior notes outstanding with an aggregate principal balance outstanding of $2.5 billion at September 30, 2017 . We refer to these notes collectively as the Unsecured Senior Notes. On January 19, 2017 , we completed a public offering of €500.0 million of 2.25% Senior Notes, at a price of 99.448% of par value, issued by our wholly owned subsidiary, WPC Eurobond B.V., which are guaranteed by us. These 2.25% Senior Notes have a 7.5 -year term and are scheduled to mature on July 19, 2024 . Interest on the Unsecured Senior Notes is payable annually in arrears for our euro-denominated notes and semi-annually for U.S. dollar-denominated notes. The Unsecured Senior Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 30 to 35 basis points. The following table presents a summary of our Unsecured Senior Notes outstanding at September 30, 2017 (currency in millions): Original Issue Discount Effective Interest Rate Principal Outstanding Balance at Unsecured Senior Notes, net (a) Issue Date Principal Amount Price of Par Value Coupon Rate Maturity Date September 30, 2017 December 31, 2016 2.0% Senior Notes 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 590.3 $ 527.1 4.6% Senior Notes 3/14/2014 $ 500.0 99.639 % $ 1.8 4.645 % 4.6 % 4/1/2024 500.0 500.0 2.25% Senior Notes 1/19/2017 € 500.0 99.448 % $ 2.9 2.332 % 2.25 % 7/19/2024 590.3 — 4.0% Senior Notes 1/26/2015 $ 450.0 99.372 % $ 2.8 4.077 % 4.0 % 2/1/2025 450.0 450.0 4.25% Senior Notes 9/12/2016 $ 350.0 99.682 % $ 1.1 4.290 % 4.25 % 10/1/2026 350.0 350.0 $ 2,480.6 $ 1,827.1 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $15.0 million and $12.1 million , and unamortized discount totaling $10.2 million and $7.8 million , at September 30, 2017 and December 31, 2016 , respectively. Proceeds from the issuances of each of these notes were used primarily to partially pay down the amounts then outstanding under the unsecured revolving credit facility that we had in place at that time. In connection with the offering of the 2.25% Senior Notes in January 2017, we incurred financing costs totaling $4.0 million during the nine months ended September 30, 2017 , which are included in Unsecured Senior Notes, net in the consolidated financial statements and are being amortized to Interest expense over the term of the 2.25% Senior Notes. Covenants The Senior Unsecured Credit Facility, as amended, and each of the Unsecured Senior Notes include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. The Senior Unsecured Credit Facility also contains various customary affirmative and negative covenants applicable to us and our subsidiaries, subject to materiality and other qualifications, baskets, and exceptions as outlined in the Credit Agreement. We were in compliance with all of these covenants at September 30, 2017 . We may make unlimited Restricted Payments (as defined in the Credit Agreement), as long as no non-payment default or financial covenant default has occurred before, or would on a pro forma basis occur as a result of, the Restricted Payment. In addition, we may make Restricted Payments in an amount required to (i) maintain our REIT status and (ii) as a result of that status, not pay federal or state income or excise tax, as long as the loans under the Credit Agreement have not been accelerated and no bankruptcy or event of default has occurred. Obligations under the Senior Unsecured Credit Facility may be declared immediately due and payable upon the occurrence of certain events of default as defined in the Credit Agreement, including failure to pay any principal when due and payable, failure to pay interest within five business days after becoming due, failure to comply with any covenant, representation or condition of any loan document, any change of control, cross-defaults, and certain other events as set forth in the Credit Agreement, with grace periods in some cases. Non-Recourse Mortgages At September 30, 2017 , our mortgage notes payable bore interest at fixed annual rates ranging from 2.0% to 7.8% and variable contractual annual rates ranging from 0.9% to 6.9% , with maturity dates ranging from December 2017 to June 2027 . In January 2017, we repaid two international non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $243.8 million encumbering a German investment, comprised of certain properties leased to Hellweg Die Profi-Baumärkte GmbH & Co. KG, or the Hellweg 2 Portfolio, which is jointly owned with our affiliate, CPA ® :17 – Global. In connection with this repayment, CPA ® :17 – Global contributed $90.3 million , which was accounted for as a contribution from a noncontrolling interest. Amounts are based on the exchange rate of the euro as of the date of repayment. The weighted-average interest rate for these mortgage loans on the date of repayment was 5.4% . During the nine months ended September 30, 2017 , we repaid additional loans at maturity with an aggregate principal balance of approximately $19.3 million . During the nine months ended September 30, 2017 , we prepaid non-recourse mortgage loans totaling $157.4 million , including $38.4 million encumbering properties that were disposed of during the nine months ended September 30, 2017 ( Note 15 ). Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable. The weighted-average interest rate for these mortgage loans on their respective dates of prepayment was 5.5% . In connection with these payments, we recognized a gain on extinguishment of debt of $0.8 million during the nine months ended September 30, 2017 , which was included in Other income and (expenses) in the consolidated financial statements. Foreign Currency Exchange Rate Impact During the nine months ended September 30, 2017 , the U.S. dollar weakened against the euro, resulting in an aggregate increase of $204.7 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Unsecured Senior Notes, net from December 31, 2016 to September 30, 2017 . Scheduled Debt Principal Payments Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 , and thereafter through 2027 are as follows (in thousands): Years Ending December 31, Total (a) 2017 (remainder) $ 40,784 2018 278,163 2019 99,384 2020 221,547 2021 384,004 Thereafter through 2027 3,320,040 Total principal payments 4,343,922 Unamortized deferred financing costs (16,210 ) Unamortized discount, net (b) (12,874 ) Total $ 4,314,838 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at September 30, 2017 . (b) Represents the unamortized discount on the Unsecured Senior Notes of $10.2 million in aggregate, unamortized discount on the Unsecured Term Loans of $1.3 million , and unamortized discount of $1.4 million in aggregate resulting from the assumption of property-level debt in connection with both the CPA ® :15 Merger and the CPA ® :16 Merger ( Note 1 ). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At September 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. |
Restructuring and Other Compens
Restructuring and Other Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Compensation | Restructuring and Other Compensation Expenses Recorded During 2017 On June 15, 2017, our Board approved a plan to exit all non-traded retail fundraising activities carried out by our wholly-owned broker-dealer subsidiary, Carey Financial, as of June 30, 2017 ( Note 1 ). As a result, we incurred non-recurring charges to exit our fundraising activities, consisting primarily of severance costs. During the nine months ended September 30, 2017 , we recorded $8.2 million of severance and benefits and $0.9 million of other related costs, which are all included in Restructuring and other compensation in the consolidated financial statements. Expenses Recorded During 2016 In connection with the resignation of our then-chief executive officer, Trevor P. Bond, we and Mr. Bond entered into a letter agreement, dated February 10, 2016. Under the terms of the agreement, subject to certain conditions, Mr. Bond is entitled to receive the severance benefits provided for in his employment agreement and, subject to satisfaction of applicable performance conditions and proration, vesting of his outstanding unvested PSUs in accordance with their terms. In addition, the portion of his previously granted RSUs that were scheduled to vest on February 15, 2016, which would have been forfeited upon separation pursuant to their terms, were allowed to vest on that date. In connection with the separation agreement, we recorded $5.1 million of severance-related expenses during the nine months ended September 30, 2016 , which are included in Restructuring and other compensation in the consolidated financial statements. In February 2016, we entered into an agreement with Catherine D. Rice, our former chief financial officer, in connection with the termination of her employment, which provides for the continued vesting of her outstanding RSUs and PSUs pursuant to their terms as though her employment had continued through their respective vesting dates. In connection with the modification of these award terms, we recorded incremental stock-based compensation expense of $2.4 million during the nine months ended September 30, 2016 , which is included in Restructuring and other compensation in the consolidated financial statements. In March 2016, as part of a cost savings initiative, we undertook a reduction in force, or RIF, and realigned and consolidated certain positions within the company, resulting in employee headcount reductions. As a result of these reductions in headcount and the separations described above, during the nine months ended September 30, 2016 , we recorded $8.2 million of severance and benefits, $3.2 million of stock-based compensation, and $0.5 million of other related costs, which are all included in Restructuring and other compensation in the consolidated financial statements. As of September 30, 2017 , the accrued liability for these severance obligations recorded during 2016 and 2017 was $4.8 million , which is included within Accounts payable, accrued expenses and other liabilities in the consolidated financial statements. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity Stock-Based Compensation In June 2017, our shareholders approved the 2017 Share Incentive Plan, which replaced our predecessor plans for employees, the 2009 Share Incentive Plan, and for non-employee directors, the 2009 Non-Employee Directors’ Incentive Plan. No further awards will be granted under those predecessor plans, which are more fully described in the 2016 Annual Report. The 2017 Share Incentive Plan authorizes the issuance of up to 4,000,000 shares of our common stock, reduced by the number of shares (279,728) that were subject to awards granted under the 2009 Share Incentive Plan and the 2009 Non-Employee Directors’ Incentive Plan after December 31, 2016 and before the effective date of the 2017 Share Incentive Plan, which was June 15, 2017. The 2017 Share Incentive Plan provides for the grant of various stock- and cash-based awards, including (i) share options, (ii) RSUs, (iii) PSUs, (iv) RSAs, and (v) dividend equivalent rights. During the nine months ended September 30, 2017 and 2016 , we recorded stock-based compensation expense of $14.6 million and $18.2 million , respectively, of which $3.2 million was included in Restructuring and other compensation for the nine months ended September 30, 2016 ( Note 12 ). Restricted and Conditional Awards Nonvested RSAs, RSUs, and PSUs at September 30, 2017 and changes during the nine months ended September 30, 2017 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2017 356,865 $ 61.63 310,018 $ 73.80 Granted (a) 193,467 62.19 107,934 75.39 Vested (b) (169,560 ) 62.77 (132,412 ) 74.21 Forfeited (41,957 ) 61.09 (45,258 ) 76.91 Adjustment (c) — — 28,271 63.24 Nonvested at September 30, 2017 (d) 338,815 $ 61.45 268,553 $ 75.18 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 2017 , we used a risk-free interest rate of 1.5% , an expected volatility rate of 17.1% , and assumed a dividend yield of zero . (b) The total fair value of shares vested during the nine months ended September 30, 2017 was $20.5 million . Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 2017 and December 31, 2016 , we had an obligation to issue 1,135,563 and 1,217,274 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $46.7 million and $50.2 million , respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2017 , total unrecognized compensation expense related to these awards was approximately $21.4 million , with an aggregate weighted-average remaining term of 1.9 years. During the three and nine months ended September 30, 2017 , 2,475 and 134,709 stock options, respectively, were exercised with an aggregate intrinsic value of less than $0.1 million and $4.0 million , respectively. At September 30, 2017 , there were 10,324 stock options outstanding, all of which were exercisable and, if not exercised, will expire on December 31, 2017. Earnings Per Share Under current authoritative guidance for determining earnings per share, all nonvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of our nonvested RSUs and RSAs contain rights to receive non-forfeitable distribution equivalents or distributions, respectively, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the nonvested participating RSUs and RSAs from the numerator and such nonvested shares in the denominator. The following table summarizes basic and diluted earnings (in thousands, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income attributable to W. P. Carey $ 80,278 $ 110,943 $ 202,080 $ 220,043 Net income attributable to nonvested participating RSUs and RSAs (239 ) (386 ) (600 ) (766 ) Net income — basic and diluted $ 80,039 $ 110,557 $ 201,480 $ 219,277 Weighted-average shares outstanding — basic 108,019,292 107,221,668 107,751,672 106,493,145 Effect of dilutive securities 124,402 246,361 195,818 360,029 Weighted-average shares outstanding — diluted 108,143,694 107,468,029 107,947,490 106,853,174 For the three and nine months ended September 30, 2017 and 2016 , there were no potentially dilutive securities excluded from the computation of diluted earnings per share. At-The-Market Equity Offering Program On March 1, 2017, we filed a prospectus supplement with the SEC pursuant to which we may offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $400.0 million , through a continuous “at-the-market,” or ATM, offering program with a consortium of banks acting as sales agents. On that date, we also terminated a prior ATM program that was established on June 3, 2015, under which we could also offer and sell shares of our common stock, up to an aggregate gross sales price of $400.0 million . During the three and nine months ended September 30, 2017 , we issued 15,500 and 345,253 shares, respectively, of our common stock under the current ATM program at a weighted-average price of $67.05 and $67.78 per share, respectively, for net proceeds of $0.9 million and $22.8 million , respectively. During the three and nine months ended September 30, 2016 , we issued 968,535 and 1,249,836 shares, respectively, of our common stock under the prior ATM program at a weighted-average price of $68.54 and $68.52 per share, respectively, for net proceeds of $65.2 million and $84.1 million , respectively. As of September 30, 2017 , $376.6 million remained available for issuance under our current ATM program. Acquisition of Noncontrolling Interest On May 24, 2017, we acquired the remaining 25% interest in an international jointly owned investment (which we already consolidated) from the noncontrolling interest holders for €2 , bringing our ownership interest to 100% . No gain or loss was recognized on the transaction. We recorded an adjustment of approximately $1.8 million to Additional paid-in capital in our consolidated statement of equity for the nine months ended September 30, 2017 related to the difference between the consideration transferred and the carrying value of the noncontrolling interest related to this investment. The property owned by the investment was sold on May 26, 2017 and we recognized a gain on sale of less than $0.1 million ( Note 15 ). Redeemable Noncontrolling Interest We account for the noncontrolling interest in our subsidiary, W. P. Carey International, LLC, or WPCI, held by a third party as a redeemable noncontrolling interest, because, pursuant to a put option held by the third party, we had an obligation to redeem the interest at fair value, subject to certain conditions. This obligation was required to be settled in shares of our common stock. On October 1, 2013, we received a notice from the holder of the noncontrolling interest in WPCI regarding the exercise of the put option, pursuant to which we were required to purchase the third party’s 7.7% interest in WPCI. Pursuant to the terms of the related put agreement, the value of that interest was determined based on a third-party valuation as of October 31, 2013, which is the end of the month that the put option was exercised. In March 2016, we issued 217,011 shares of our common stock to the holder of the redeemable noncontrolling interest, which had a value of $13.4 million at the date of issuance, pursuant to a formula set forth in the put agreement. Through the date of this Report, the third party has not formally transferred his interests in WPCI to us pursuant to the put agreement because of a dispute regarding any amounts that may still be owed to him. The following table presents a reconciliation of redeemable noncontrolling interest (in thousands): Nine Months Ended September 30, 2017 2016 Beginning balance $ 965 $ 14,944 Distributions — (13,418 ) Redemption value adjustment — (561 ) Ending balance $ 965 $ 965 Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended September 30, 2017 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 24,636 $ (267,868 ) $ (416 ) $ (243,648 ) Other comprehensive income before reclassifications (8,367 ) 25,417 66 17,116 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Interest expense 286 — — 286 Other income and (expenses) (2,189 ) — — (2,189 ) Total (1,903 ) 3,562 — 1,659 Net current period other comprehensive income (10,270 ) 28,979 66 18,775 Net current period other comprehensive gain attributable to noncontrolling interests 8 (4,716 ) — (4,708 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Three Months Ended September 30, 2016 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 34,744 $ (240,985 ) $ 40 $ (206,201 ) Other comprehensive loss before reclassifications (1,178 ) (11,824 ) (7 ) (13,009 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 512 — — 512 Other income and (expenses) (2,427 ) — — (2,427 ) Total (1,915 ) — — (1,915 ) Net current period other comprehensive loss (3,093 ) (11,824 ) (7 ) (14,924 ) Net current period other comprehensive gain attributable to noncontrolling interests 17 (218 ) — (201 ) Ending balance $ 31,668 $ (253,027 ) $ 33 $ (221,326 ) Nine Months Ended September 30, 2017 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 46,935 $ (301,330 ) $ (90 ) $ (254,485 ) Other comprehensive income before reclassifications (25,108 ) 68,124 (260 ) 42,756 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Interest expense 1,024 — — 1,024 Other income and (expenses) (8,490 ) — — (8,490 ) Total (7,466 ) 3,562 — (3,904 ) Net current period other comprehensive income (32,574 ) 71,686 (260 ) 38,852 Net current period other comprehensive gain attributable to noncontrolling interests 13 (13,961 ) — (13,948 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Nine Months Ended September 30, 2016 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 37,650 $ (209,977 ) $ 36 $ (172,291 ) Other comprehensive loss before reclassifications (1,155 ) (41,999 ) (3 ) (43,157 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,578 — — 1,578 Other income and (expenses) (6,422 ) — — (6,422 ) Total (4,844 ) — — (4,844 ) Net current period other comprehensive loss (5,999 ) (41,999 ) (3 ) (48,001 ) Net current period other comprehensive gain attributable to noncontrolling interests 17 (1,051 ) — (1,034 ) Ending balance $ 31,668 $ (253,027 ) $ 33 $ (221,326 ) Distributions Declared During the third quarter of 2017 , we declared a quarterly distribution of $1.0050 per share, which was paid on October 16, 2017 to stockholders of record on October 2, 2017, in the aggregate amount of $107.4 million . During the nine months ended September 30, 2017 , we declared distributions totaling $3.00 per share in the aggregate amount of $320.3 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually and intend to do so for the tax year ending December 31, 2017 . Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and nine months ended September 30, 2017 and 2016 . Certain of our subsidiaries have elected TRS status. A TRS may provide certain services considered impermissible for REITs and may hold assets that REITs may not hold directly. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. The accompanying consolidated financial statements include an interim tax provision for our TRSs and foreign subsidiaries, as necessary, for the three and nine months ended September 30, 2017 and 2016 . Current income tax expense was $3.0 million and $4.8 million for the three months ended September 30, 2017 and 2016 , respectively, and $11.1 million and $14.7 million for the nine months ended September 30, 2017 and 2016 , respectively. During the second quarter of 2016, we identified and recorded out-of-period adjustments related to adjustments to prior period income tax returns. This adjustment is reflected as a $3.0 million reduction of our Benefit from income taxes in the consolidated statements of income for the nine months ended September 30, 2016 ( Note 2 ), and is included in current income tax expense for the nine months ended September 30, 2016 . Our TRSs and foreign subsidiaries are subject to U.S. federal, state, and foreign income taxes. As such, deferred tax assets and liabilities are established for temporary differences between the financial reporting basis and the tax basis of assets and liabilities at the enacted tax rates expected to be in effect when the temporary differences reverse. A valuation allowance for deferred tax assets is provided if we believe that it is more likely than not that we will not realize the tax benefit of deferred tax assets based on available evidence at the time the determination is made. A change in circumstances may cause us to change our judgment about whether the tax benefit of a deferred tax asset will more likely than not be realized. We generally report any change in the valuation allowance through our income statement in the period in which such changes in circumstances occur. Deferred tax assets (net of valuation allowance) and liabilities for our TRSs and foreign subsidiaries were recorded, as necessary, as of September 30, 2017 and December 31, 2016 . The majority of our deferred tax assets relate to the timing difference between the financial reporting basis and tax basis for stock-based compensation expense. The majority of our deferred tax liabilities relate to differences between the tax basis and financial reporting basis of the assets acquired in acquisitions in which the tax basis of such assets was not stepped up to fair value for income tax purposes. (Provision for) benefit from income taxes included deferred income tax benefits of $1.2 million and $1.6 million for the three months ended September 30, 2017 and 2016 , respectively, and $8.2 million and $19.2 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Property Dispositions
Property Dispositions | 9 Months Ended |
Sep. 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 make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. All property dispositions are recorded within our Owned Real Estate segment. 2017 — During the three and nine months ended September 30, 2017 , we sold five properties, and 11 properties and a parcel of vacant land, respectively, for total proceeds of $58.7 million and $102.5 million , respectively, net of selling costs, and recognized a net gain on these sales of $19.3 million and $22.7 million , respectively. In connection with the sale of a property in Malaysia in August 2017, and in accordance with ASC 830-30-40, Foreign Currency Matters , we reclassified $3.6 million of foreign currency translation losses from Accumulated other comprehensive loss to Gain on sale of real estate, net of tax (as a reduction to Gain on sale of real estate, net of tax), since the sale represented a disposal of our Malaysian investments ( Note 13 ). One of the properties sold during the nine months ended September 30, 2017 was held for sale at December 31, 2016 ( Note 4 ). In addition, in January 2017, we transferred ownership of two international properties and the related non-recourse mortgage loan, which had an aggregate asset carrying value of $31.3 million and an outstanding balance of $28.1 million (net of $3.8 million of cash held in escrow that was retained by the mortgage lender), respectively, on the dates of transfer, to the mortgage lender, resulting in a net loss of less than $0.1 million . During the nine months ended September 30, 2017 , we entered into a contract to sell one international property, which was classified as held for sale as of September 30, 2017 ( Note 4 ). 2016 — During the three and nine months ended September 30, 2016 , we sold three properties, and ten properties and a parcel of vacant land, respectively, for total proceeds of $192.0 million and $392.6 million , respectively, net of selling costs, and recognized a net gain on these sales of $37.4 million and $39.9 million , respectively, including amounts attributable to noncontrolling interests of $0.9 million for the nine months ended September 30, 2016 . In April 2016, we transferred ownership of a vacant international property and the related non-recourse mortgage loan, which had a carrying value of $39.8 million and an outstanding balance of $60.9 million , respectively, on the date of transfer, to the mortgage lender, resulting in a net gain of $16.4 million . In addition, in July 2016, a vacant domestic property with an asset carrying value of $13.7 million , which was encumbered by a $24.3 million non-recourse mortgage loan (net of $2.6 million of cash held in escrow that was retained by the mortgage lender), was foreclosed upon by the mortgage lender, resulting in a net gain of $11.6 million . In connection with those sales that constituted businesses, during the three and nine months ended September 30, 2016 we allocated goodwill totaling $18.0 million and $32.9 million , respectively, to the cost basis of the properties for our Owned Real Estate segment based on the relative fair value at the time of the sale. In the fourth quarter of 2015, we executed a lease amendment with a tenant in a domestic office building. The amendment extended the lease term an additional 15 years to January 31, 2037 and provided a one-time rent payment of $25.0 million , which was paid to us on December 18, 2015. The lease amendment also provided an option to terminate the lease effective February 29, 2016, with additional lease termination fees of $22.2 million to be paid to us on or five days before February 29, 2016 upon exercise of the option. The tenant exercised the option on January 1, 2016. The aggregate of the additional rent payment of $25.0 million and the lease termination fees of $22.2 million were amortized to lease termination income from the lease amendment date on December 4, 2015 through the end of the non-cancelable lease term on February 29, 2016, resulting in $15.0 million recognized during the year ended December 31, 2015 and $32.2 million recognized during the nine months ended September 30, 2016 within Lease termination income and other in the consolidated financial statements. In addition, during the fourth quarter of 2015, we entered into an agreement to sell the property to a third party and the buyer placed a deposit of $12.7 million for the purchase of the property that was held in escrow. In February 2016, we sold the property for proceeds of $44.4 million , net of selling costs, and recognized a loss on the sale of $10.7 million . |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We evaluate our results from operations through our two major business segments: Owned Real Estate and Investment Management. As a result of our Board’s decision to exit all non-traded retail fundraising activities as of June 30, 2017 ( Note 1 ), we have revised how we view and present a component of our two reportable segments. As such, beginning with the second quarter of 2017, we include (i) equity in earnings of equity method investments in the Managed Programs and (ii) our equity investments in the Managed Programs in our Investment Management segment. Both (i) earnings from our investment in CCIF and (ii) our investment in CCIF continue to be included in our Investment Management segment. Results of operations and assets by segment for prior periods have been reclassified to conform to the current period presentation. The following tables present a summary of comparative results and assets for these business segments (in thousands): Owned Real Estate Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Lease revenues $ 161,511 $ 163,786 $ 475,547 $ 506,358 Operating property revenues 8,449 8,524 23,652 23,696 Reimbursable tenant costs 5,397 6,537 15,940 19,237 Lease termination income and other 1,227 1,224 4,234 34,603 176,584 180,071 519,373 583,894 Operating Expenses Depreciation and amortization 62,970 61,740 186,481 210,557 General and administrative 11,234 7,453 27,311 25,653 Property expenses, excluding reimbursable tenant costs 10,556 10,193 31,196 38,475 Reimbursable tenant costs 5,397 6,537 15,940 19,237 Stock-based compensation expense 1,880 1,572 4,733 4,316 Other expenses 65 — 1,138 2,975 Impairment charges — 14,441 — 49,870 Restructuring and other compensation — — — 4,413 92,102 101,936 266,799 355,496 Other Income and Expenses Interest expense (41,182 ) (44,349 ) (125,374 ) (139,496 ) Equity in earnings of equity method investments in real estate 3,740 3,230 9,533 9,585 Other income and (expenses) (4,918 ) 3,244 (6,249 ) 7,681 (42,360 ) (37,875 ) (122,090 ) (122,230 ) Income before income taxes and gain on sale of real estate 42,122 40,260 130,484 106,168 (Provision for) benefit from income taxes (1,511 ) (530 ) (6,696 ) 6,792 Income before gain on sale of real estate 40,611 39,730 123,788 112,960 Gain on sale of real estate, net of tax 19,257 49,126 22,732 68,070 Net Income from Owned Real Estate 59,868 88,856 146,520 181,030 Net income attributable to noncontrolling interests (3,376 ) (1,359 ) (8,530 ) (6,294 ) Net Income from Owned Real Estate Attributable to W. P. Carey $ 56,492 $ 87,497 $ 137,990 $ 174,736 Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Asset management revenue $ 17,938 $ 15,978 $ 53,271 $ 45,596 Structuring revenue 9,817 12,301 27,981 30,990 Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 Dealer manager fees 105 1,835 4,430 5,379 Other advisory revenue 99 522 896 522 34,170 45,176 131,968 128,859 Operating Expenses Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 General and administrative 6,002 8,280 25,878 32,469 Subadvisor fees 5,206 4,842 11,598 10,010 Stock-based compensation expense 2,755 2,784 9,916 10,648 Restructuring and other compensation 1,356 — 9,074 7,512 Depreciation and amortization 1,070 1,062 2,838 3,278 Dealer manager fees and expenses 462 3,028 6,544 9,000 Other expenses — — — 2,384 23,062 34,536 111,238 121,673 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 12,578 13,573 38,287 38,658 Other income and (expenses) 349 1,857 1,280 1,717 12,927 15,430 39,567 40,375 Income before income taxes 24,035 26,070 60,297 47,561 (Provision for) benefit from income taxes (249 ) (2,624 ) 3,793 (2,254 ) Net Income from Investment Management Attributable to W. P. Carey $ 23,786 $ 23,446 $ 64,090 $ 45,307 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 210,754 $ 225,247 $ 651,341 $ 712,753 Operating expenses 115,164 136,472 378,037 477,169 Other income and (expenses) (29,433 ) (22,445 ) (82,523 ) (81,855 ) Gain on sale of real estate, net of tax 19,257 49,126 22,732 68,070 (Provision for) benefit from income taxes (1,760 ) (3,154 ) (2,903 ) 4,538 Net income attributable to noncontrolling interests (3,376 ) (1,359 ) (8,530 ) (6,294 ) Net income attributable to W. P. Carey $ 80,278 $ 110,943 $ 202,080 $ 220,043 Total Assets at September 30, 2017 December 31, 2016 Owned Real Estate $ 7,975,925 $ 8,104,974 Investment Management 358,486 348,980 Total Company $ 8,334,411 $ 8,453,954 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Mortgage Loan Repayments In October 2017, we repaid three non-recourse mortgage loans with an aggregate principal balance of approximately $25.2 million . Repayments of Loans to Affiliates In October 2017, CWI 1 repaid a total of $29.2 million of the loans outstanding to us at September 30, 2017, of which $15.0 million reduced the amount outstanding under the revolving working capital facility and $14.2 million went toward repaying the bridge loan. In October 2017, CPA ® :18 – Global repaid in full the $19.0 million loan that was outstanding to us at September 30, 2017 ( Note 3 ). Loan to Affiliate On October 19, 2017, we entered into a secured $25.0 million revolving working capital facility with CWI 2. The loan bears interest at LIBOR plus 1.00% and matures on the earlier of December 31, 2018 and the expiration or termination by CWI 2 of its advisory agreement with us ( Note 3 ). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States, or GAAP. |
Basis of Consolidation | Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries and our tenancy-in-common interest as described below. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. 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 September 30, 2017 , we considered 28 entities to be VIEs, 21 of which we consolidated as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2017 December 31, 2016 (a) Land, buildings and improvements $ 910,495 $ 886,148 Net investments in direct financing leases 39,897 60,294 In-place lease and other intangible assets 265,852 245,480 Above-market rent intangible assets 102,432 98,043 Accumulated depreciation and amortization (231,323 ) (184,710 ) Total assets 1,129,154 1,150,093 Non-recourse mortgages, net $ 128,659 $ 406,574 Total liabilities 202,514 548,659 __________ (a) In 2017, we reclassified certain line items in our consolidated balance sheets, as described below. As a result, prior period amounts for certain line items included within Net investments in real estate have been reclassified to conform to the current period presentation. At September 30, 2017 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments, which we account for under the equity method of accounting, and one unconsolidated entity, which we account for under the cost method of accounting and is included within our Investment Management segment. At December 31, 2016 , our seven unconsolidated VIEs included our interests in six unconsolidated real estate investments and one unconsolidated entity among our interests in the Managed Programs, all of which we accounted 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 September 30, 2017 and December 31, 2016 , the net carrying amount of our investments in these entities was $152.8 million and $152.9 million , respectively, and our maximum exposure to loss in these entities was limited to our investments. At September 30, 2017 , we had an investment in a tenancy-in-common interest in various underlying international properties. Consolidation of this investment is not required as such interest does not qualify as a VIE and does not meet the control requirement for consolidation. Accordingly, we account for this investment using the equity method of accounting. We use the equity method of accounting because the shared decision-making involved in a tenancy-in-common interest investment provides us with significant influence on the operating and financial decisions of this investment. At times, the carrying value of our equity investments may fall below zero for certain investments. We intend to fund our share of the jointly owned investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments, nor do we have any legal obligation to fund operating deficits. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 does not apply to our lease revenues, which constitute a majority of our revenues, but will primarily apply to revenues generated from our operating properties and our Investment Management business. We will adopt this guidance for our interim and annual 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. In addition, it also requires lessors to record gross revenues and expenses associated with activities that do not transfer services to the lessee (such as real estate taxes and insurance). Additionally, the new standard requires extensive quantitative and qualitative disclosures. 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. We will adopt this guidance for our interim and annual periods beginning January 1, 2019. 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 March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 amends Accounting Standards Codification, or ASC, Topic 718, Compensation-Stock Based Compensation to simplify various aspects of how share-based payments are accounted for and presented in the financial statements including (i) reflecting income tax effects of share-based payments through the income statement, (ii) allowing statutory tax withholding requirements at the employees’ maximum individual tax rate without requiring awards to be classified as liabilities, and (iii) permitting an entity to make an accounting policy election for the impact of forfeitures on the recognition of expense. ASU 2016-09 is effective for public business entities for annual reporting periods beginning after December 15, 2016, and interim periods within that reporting period, with early adoption permitted. We adopted ASU 2016-09 as of January 1, 2017 and elected to account for forfeitures as they occur, rather than to account for them based on an estimate of expected forfeitures. This election was adopted using a modified retrospective transition method, with a cumulative effect adjustment to retained earnings. The related financial statement impact of this adjustment is not material. Depending on several factors, such as the market price of our common stock, employee stock option exercise behavior, and corporate income tax rates, the excess tax benefits associated with the exercise of stock options and the vesting and delivery of restricted share awards, or RSAs, restricted share units, or RSUs, and performance share units, or PSUs, could generate a significant income tax benefit in a particular interim period, potentially creating volatility in Net income attributable to W. P. Carey and basic and diluted earnings per share between interim periods. Under the former accounting guidance, windfall tax benefits related to stock-based compensation were recognized within Additional paid-in capital in our consolidated financial statements. Under ASU 2016-09, these amounts are reflected as a reduction to Provision for income taxes. For reference, windfall tax benefits related to stock-based compensation recorded in Additional paid-in capital for the years ended December 31, 2016 and 2015 were $6.7 million and $12.5 million , respectively. Windfall tax benefits related to stock-based compensation recorded as a deferred tax benefit for the three and nine months ended September 30, 2017 were $0.6 million and $3.6 million , respectively. 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 retrospectively 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 retrospectively 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 in the process of evaluating the impact of ASU 2017-05 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting . ASU 2017-09 clarifies when to account for a change to the terms and conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, vesting conditions, or classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU 2017-09 will be effective 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 2017-09 on our consolidated financial statements and will adopt the standard for the fiscal year beginning January 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . ASU 2017-12 will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess hedge effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU 2017-12 will be effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are in the process of evaluating the impact of adopting ASU 2017-12 on our consolidated financial statements. |
Intangible Assets and Liabilities and Goodwill | Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues; amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization; and amortization of above-market ground lease and below-market ground lease intangibles is included in Property expenses, excluding reimbursable tenant costs. We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from three years to 40 years . In addition, we have several ground lease intangibles that are being amortized over periods of up to 99 years . In-place lease and below-market ground lease (as lessee) intangibles, at cost are included in In-place lease and other intangible assets in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease, below-market ground lease (as lessee), and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent, above-market ground lease (as lessee), and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. |
Fair Value Measurement | The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, foreign currency forward contracts, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. |
Earnings Per Share | Under current authoritative guidance for determining earnings per share, all nonvested share-based payment awards that contain non-forfeitable rights to distributions are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of our nonvested RSUs and RSAs contain rights to receive non-forfeitable distribution equivalents or distributions, respectively, and therefore we apply the two-class method of computing earnings per share. The calculation of earnings per share below excludes the income attributable to the nonvested participating RSUs and RSAs from the numerator and such nonvested shares in the denominator. |
Redeemable Interest | We account for the noncontrolling interest in our subsidiary, W. P. Carey International, LLC, or WPCI, held by a third party as a redeemable noncontrolling interest, because, pursuant to a put option held by the third party, we had an obligation to redeem the interest at fair value, subject to certain conditions. This obligation was required to be settled in shares of our common stock. |
Discontinued Operations | 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 make a decision to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. All property dispositions are recorded within our Owned Real Estate segment. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table presents a summary of selected financial data of the consolidated VIEs included in the consolidated balance sheets (in thousands): September 30, 2017 December 31, 2016 (a) Land, buildings and improvements $ 910,495 $ 886,148 Net investments in direct financing leases 39,897 60,294 In-place lease and other intangible assets 265,852 245,480 Above-market rent intangible assets 102,432 98,043 Accumulated depreciation and amortization (231,323 ) (184,710 ) Total assets 1,129,154 1,150,093 Non-recourse mortgages, net $ 128,659 $ 406,574 Total liabilities 202,514 548,659 __________ (a) In 2017, we reclassified certain line items in our consolidated balance sheets, as described below. As a result, prior period amounts for certain line items included within Net investments in real estate have been reclassified to conform to the current period presentation. |
Agreements and Transactions w28
Agreements and Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Party Transactions | The following table sets forth certain information regarding our loans to affiliates (dollars in thousands): Interest Rate at Maturity Date at September 30, 2017 Maximum Loan Amount Authorized at September 30, 2017 Principal Outstanding Balance at (a) Managed Program September 30, 2017 December 31, 2016 CWI 1 (b) (c) (d) LIBOR + 1.00% 6/30/2018; 12/31/2018 $ 100,000 $ 97,835 $ — CPA ® :18 – Global (b) (e) LIBOR + 1.00% 10/31/2017; 5/15/2018 50,000 19,000 27,500 CESH I (b) LIBOR + 1.00% 5/3/2018; 5/9/2018 35,000 14,461 — CWI 2 (f) N/A N/A N/A — 210,000 $ 131,296 $ 237,500 __________ (a) Amounts exclude accrued interest of $0.9 million and $0.1 million at September 30, 2017 and December 31, 2016 , respectively. (b) LIBOR means London Interbank Offered Rate. (c) We entered into a secured credit facility with CWI 1 in September 2017, comprised of a $75.0 million bridge loan to facilitate an acquisition and a $25.0 million revolving working capital facility. (d) In October 2017, CWI 1 repaid $29.2 million , in aggregate, of the loans outstanding to us at September 30, 2017 ( Note 17 ). (e) In October 2017, CPA ® :18 – Global repaid in full the amount outstanding to us at September 30, 2017 ( Note 17 ). (f) In October 2017, we entered into a secured $25.0 million revolving working capital facility with CWI 2 ( Note 17 ). The following tables present a summary of revenue earned and/or cash received from the Managed Programs for the periods indicated, included in the consolidated financial statements. Asset management revenue excludes amounts received from third parties (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Asset management revenue $ 17,938 $ 15,955 $ 53,271 $ 45,535 Distributions of Available Cash 12,047 10,876 34,568 32,018 Structuring revenue 9,817 12,301 27,981 30,990 Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 Interest income on deferred acquisition fees and loans to affiliates 447 130 1,464 492 Dealer manager fees 105 1,835 4,430 5,379 Other advisory revenue 99 522 896 522 $ 46,664 $ 56,159 $ 168,000 $ 161,308 Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 CPA ® :17 – Global $ 15,383 $ 16,616 $ 55,645 $ 51,820 CPA ® :18 – Global 4,042 5,259 18,361 22,851 CWI 1 11,940 7,771 26,051 26,453 CWI 2 11,643 19,924 45,206 49,233 CCIF 1,787 3,388 12,777 7,750 CESH I 1,869 3,201 9,960 3,201 $ 46,664 $ 56,159 $ 168,000 $ 161,308 |
Schedule of Balances Due to and From Related Party | The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): September 30, 2017 December 31, 2016 Short-term loans to affiliates, including accrued interest $ 132,210 $ 237,613 Deferred acquisition fees receivable, including accrued interest 10,720 21,967 Accounts receivable 5,358 5,005 Reimbursable costs 3,943 4,427 Current acquisition fees receivable 1,508 8,024 Asset management fees receivable 539 2,449 Organization and offering costs 58 784 Distribution and shareholder servicing fees — 19,341 $ 154,336 $ 299,610 |
Schedule of Related Party Fees | The following tables present summaries of such fee arrangements: Broker-Dealer Selling Commissions Managed Program Rate Payable Description CWI 2 Class A Shares January 1, 2016 through March 31, 2017: $0.70 April 27, 2017 through July 31, 2017: $0.84 (a) In cash upon share settlement; 100% re-allowed to broker-dealers Per share sold CWI 2 Class T Shares January 1, 2016 through March 31, 2017: $0.19 April 27, 2017 through July 31, 2017: $0.23 (a) In cash upon share settlement; 100% re-allowed to broker-dealers Per share sold CCIF Feeder Funds Through September 10, 2017: 0% – 3% (b) In cash upon share settlement; 100% re-allowed to broker-dealers Based on the selling price of each share sold; the offering for Carey Credit Income Fund 2016 T (known as Guggenheim Credit Income Fund 2016 T since October 23, 2017), or CCIF 2016 T, closed on April 28, 2017 CESH I Up to 7.0% of gross offering proceeds (a) In cash upon limited partnership unit settlement; 100% re-allowed to broker-dealers Based on the selling price of each limited partnership unit sold __________ (a) After the end of active fundraising by Carey Financial on June 30, 2017, we facilitated the orderly processing of sales in the offerings of CWI 2 and CESH I through July 31, 2017, which then closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. Dealer Manager Fees Managed Program Rate Payable Description CWI 2 Class A Shares January 1, 2016 through March 31, 2017: $0.30 April 27, 2017 through July 31, 2017: $0.36 (a) Per share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers CWI 2 Class T Shares January 1, 2016 through March 31, 2017: $0.26 April 27, 2017 through July 31, 2017: $0.31 (a) Per share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers CCIF Feeder Funds Through September 10, 2017: 2.50% – 3.0% (b) Based on the selling price of each share sold In cash upon share settlement; a portion may be re-allowed to broker-dealers; CCIF 2016 T’s offering closed on April 28, 2017 CESH I Up to 3.0% of gross offering proceeds (a) Per limited partnership unit sold In cash upon limited partnership unit settlement; a portion may be re-allowed to broker-dealers __________ (a) In connection with the end of active fundraising by Carey Financial on June 30, 2017, CWI 2 and CESH I facilitated the orderly processing of sales through July 31, 2017 and closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. Annual Distribution and Shareholder Servicing Fee Managed Program Rate Payable Description CPA ® :18 – Global Class C Shares (a) 1.0% Accrued daily and payable quarterly in arrears in cash; a portion may be re-allowed to selected dealers Based on the purchase price per share sold or, once it was reported, the net asset value per share, or NAV; cease paying when underwriting compensation from all sources equals 10% of gross offering proceeds CWI 2 Class T Shares (a) 1.0% Accrued daily and payable quarterly in arrears in cash; a portion may be re-allowed to selected dealers Based on the purchase price per share sold or, once it was reported, the NAV; cease paying on the earlier of six years or when underwriting compensation from all sources equals 10% of gross offering proceeds CCIF 2016 T (b) 0.9% Payable quarterly in arrears in cash; 100% is re-allowed to selected dealers Based on the weighted-average net price of shares sold in the public offering; cease paying on the earlier of when underwriting compensation from all sources equals, including this fee, 10% of gross offering proceeds or the date at which a liquidity event occurs __________ (a) In connection with our exit from all non-traded retail fundraising activities as of June 30, 2017, beginning with the payment for the third quarter of 2017 (which was made during the fourth quarter of 2017), the distribution and shareholder servicing fee is now paid directly to selected dealers by the respective funds. As a result, our liability to the selected dealers and the corresponding receivable from the funds were removed during the third quarter of 2017. (b) In connection with our resignation as advisor to CCIF in August 2017, our dealer manager agreement was assigned to Guggenheim. As a result, our liability to the selected dealers and the corresponding receivable from CCIF was removed. Personnel and Overhead Costs Managed Program Payable Description CPA ® :17 – Global and CPA ® :18 – Global In cash Personnel and overhead costs, excluding those related to our legal transactions group, our senior management, and our investments team, are charged to the CPA ® REITs based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and are capped at 2.0% and 2.2% of each CPA ® REIT’s pro rata lease revenues for 2017 and 2016, respectively; for the legal transactions group, costs are charged according to a fee schedule CWI 1 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CWI 2 In cash Actual expenses incurred, excluding those related to our senior management; allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter CCIF and CCIF Feeder Funds In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Actual expenses incurred, excluding those related to their investment management team and senior management team CESH I In cash Actual expenses incurred Organization and Offering Costs Managed Program Payable Description CWI 2 (a) In cash; within 60 days after the end of the quarter in which the offering terminates Actual costs incurred up to 1.5% of the gross offering proceeds CCIF and CCIF Feeder Funds (b) In cash; payable monthly, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Up to 1.5% of the gross offering proceeds; we were required to pay 50% of the organization and offering costs we received to the subadvisor CESH I (a) N/A In lieu of reimbursing us for organization and offering costs, CESH I paid us limited partnership units, as described below under Other Advisory Revenue __________ (a) In connection with the end of active fundraising by Carey Financial on June 30, 2017, CWI 2 and CESH I facilitated the orderly processing of sales through July 31, 2017 and closed their respective offerings on that date. (b) In August 2017, we resigned as the advisor to CCIF, and our advisory agreement with CCIF was terminated, effective as of September 11, 2017. The following table presents a summary of our asset management fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA ® :17 – Global 0.5% – 1.75% 2016 50% in cash and 50% in shares of its common stock; 2017 in shares of its common stock Rate depends on the type of investment and is based on the average market or average equity value, as applicable CPA ® :18 – Global 0.5% – 1.5% In shares of its Class A common stock Rate depends on the type of investment and is based on the average market or average equity value, as applicable CWI 1 0.5% 2016 in cash; 2017 in shares of its common stock Rate is based on the average market value of the investment; we are required to pay 20% of the asset management revenue we receive to the subadvisor CWI 2 0.55% In shares of its Class A common stock Rate is based on the average market value of the investment; we are required to pay 25% of the asset management revenue we receive to the subadvisor CCIF 1.75% – 2.00% In cash, prior to our resignation as the advisor to CCIF, effective September 11, 2017 ( Note 1 ) Based on the average of gross assets at fair value; we were required to pay 50% of the asset management revenue we received to the subadvisor CESH I 1.0% In cash Based on gross assets at fair value Managed BDCs. The following table presents a summary of our structuring fee arrangements with the Managed Programs: Managed Program Rate Payable Description CPA ® :17 – Global 1% – 1.75%, 4.5% In cash; for non net-lease investments, 1% – 1.75% upon completion; for net-lease investments, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the net-lease investments made; also based on the total aggregate cost of the non net-lease investments or commitments made; total limited to 6% of the contract prices in aggregate CPA ® :18 – Global 4.5% In cash; for all investments, other than readily marketable real estate securities for which we will not receive any acquisition fees, 2.5% upon completion, with 2% deferred and payable in three interest-bearing annual installments Based on the total aggregate cost of the investments or commitments made; total limited to 6% of the contract prices in aggregate CWI REITs 2.5% In cash upon completion; however, fees were paid 50% in cash and 50% in shares of CWI 1’s common stock and CWI 2’s Class A common stock for a jointly-owned investment structured on behalf of CWI 1 and CWI 2 in September 2017, with the approval of each CWI REIT’s board of directors Based on the total aggregate cost of the lodging investments or commitments made; loan refinancing transactions up to 1% of the principal amount; we are required to pay 20% and 25% to the subadvisors of CWI 1 and CWI 2, respectively; total for each CWI REIT limited to 6% of the contract prices in aggregate CESH I 2.0% In cash upon completion Based on the total aggregate cost of investments or commitments made, including the acquisition, development, construction, or re-development of the investments |
Land, Building and Improvemen29
Land, Building and Improvements and Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Net Investments in Real Estate Properties | Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Land $ 1,132,569 $ 1,128,933 Buildings 4,194,213 4,053,334 Real estate under construction 20,373 21,859 Less: Accumulated depreciation (578,592 ) (472,294 ) $ 4,768,563 $ 4,731,832 At both September 30, 2017 and December 31, 2016 , Land, buildings and improvements attributable to operating properties consisted of our investments in two hotels, which are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Land $ 6,041 $ 6,041 Buildings 76,043 75,670 Less: Accumulated depreciation (15,345 ) (12,143 ) $ 66,739 $ 69,568 |
Disclosure of Long Lived Assets Held-for-sale | Below is a summary of our properties held for sale (in thousands): September 30, 2017 December 31, 2016 Real estate, net $ 6,146 $ — Intangible assets, net 4,450 — Net investments in direct financing leases — 26,247 Assets held for sale $ 10,596 $ 26,247 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Finance Receivables Credit Quality Indicators | A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 1 - 3 24 27 $ 604,081 $ 621,955 4 8 5 123,173 70,811 5 — 1 — 1,644 $ 727,254 $ 694,410 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule Of Intangible Assets And Goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 18,649 $ (7,159 ) $ 11,490 $ 18,568 $ (5,068 ) $ 13,500 Trade name 3,975 (200 ) 3,775 3,975 — 3,975 22,624 (7,359 ) 15,265 22,543 (5,068 ) 17,475 Lease Intangibles: In-place lease 1,185,107 (398,237 ) 786,870 1,148,232 (322,119 ) 826,113 Above-market rent 639,140 (255,152 ) 383,988 632,383 (210,927 ) 421,456 Below-market ground lease 18,693 (1,698 ) 16,995 23,140 (1,381 ) 21,759 1,842,940 (655,087 ) 1,187,853 1,803,755 (534,427 ) 1,269,328 Indefinite-Lived Goodwill and Intangible Assets Goodwill 643,321 — 643,321 635,920 — 635,920 Below-market ground lease 970 — 970 866 — 866 644,291 — 644,291 636,786 — 636,786 Total intangible assets $ 2,509,855 $ (662,446 ) $ 1,847,409 $ 2,463,084 $ (539,495 ) $ 1,923,589 Finite-Lived Intangible Liabilities Below-market rent $ (136,319 ) $ 46,377 $ (89,942 ) $ (133,137 ) $ 38,231 $ (94,906 ) Above-market ground lease (13,206 ) 2,879 (10,327 ) (12,948 ) 2,362 (10,586 ) (149,525 ) 49,256 (100,269 ) (146,085 ) 40,593 (105,492 ) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711 ) — (16,711 ) (16,711 ) — (16,711 ) Total intangible liabilities $ (166,236 ) $ 49,256 $ (116,980 ) $ (162,796 ) $ 40,593 $ (122,203 ) |
Equity Investments in the Man32
Equity Investments in the Managed Programs and Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table presents Equity in earnings of equity method investments in the Managed Programs and real estate, which represents our proportionate share of the income or losses of these investments, as well as certain adjustments related to amortization of basis differences related to purchase accounting adjustments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Distributions of Available Cash ( Note 3 ) $ 12,047 $ 10,876 $ 34,568 $ 32,018 Proportionate share of equity in earnings of equity investments in the Managed Programs 886 2,962 4,688 7,396 Amortization of basis differences on equity method investments in the Managed Programs (355 ) (265 ) (969 ) (756 ) Total equity in earnings of equity method investments in the Managed Programs 12,578 13,573 38,287 38,658 Equity in earnings of equity method investments in real estate 4,244 4,197 11,404 12,456 Amortization of basis differences on equity method investments in real estate (504 ) (967 ) (1,871 ) (2,871 ) Total equity in earnings of equity method investments in real estate 3,740 3,230 9,533 9,585 Equity in earnings of equity method investments in the Managed Programs and real estate $ 16,318 $ 16,803 $ 47,820 $ 48,243 The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 CPA ® :17 – Global 3.996 % 3.456 % $ 120,464 $ 99,584 CPA ® :17 – Global operating partnership 0.009 % 0.009 % — — CPA ® :18 – Global 2.298 % 1.616 % 25,812 17,955 CPA ® :18 – Global operating partnership 0.034 % 0.034 % 209 209 CWI 1 1.882 % 1.109 % 23,351 11,449 CWI 1 operating partnership 0.015 % 0.015 % 186 — CWI 2 1.541 % 0.773 % 14,171 5,091 CWI 2 operating partnership 0.015 % 0.015 % 300 300 CCIF (a) — % 13.322 % — 23,528 CESH I (b) 2.430 % 2.431 % 3,110 2,701 $ 187,603 $ 160,817 __________ (a) In August 2017, we resigned as the advisor to CCIF, effective as of September 11, 2017 ( Note 1 ). As such, we reclassified our investment in CCIF from Equity investments in the Managed Programs and real estate to Other assets, net in our consolidated balance sheets and account for it under the cost method, since we no longer share decision-making responsibilities with the third-party investment partner. Our cost method investment in CCIF had a carrying value of $23.3 million at September 30, 2017 and is included in our Investment Management segment. (b) Investment is accounted for at fair value. The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee Co-owner Ownership Interest September 30, 2017 December 31, 2016 The New York Times Company CPA ® :17 – Global 45% $ 69,510 $ 69,668 Frontier Spinning Mills, Inc. CPA ® :17 – Global 40% 24,147 24,138 Beach House JV, LLC (a) Third Party N/A 15,105 15,105 ALSO Actebis GmbH (b) CPA ® :17 – Global 30% 12,072 11,205 Jumbo Logistiek Vastgoed B.V. (b) (c) CPA ® :17 – Global 15% 10,505 8,739 Wagon Automotive GmbH (b) CPA ® :17 – Global 33% 8,323 8,887 Wanbishi Archives Co. Ltd. (d) CPA ® :17 – Global 3% 333 334 $ 139,995 $ 138,076 __________ (a) This investment is in the form of a preferred equity interest. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. The co-obligor is CPA ® :17 – Global and the amount due under the arrangement was approximately $75.4 million at September 30, 2017 . Of this amount, $11.3 million represents the amount we are liable for and is included within the carrying value of the investment at September 30, 2017 . (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the yen. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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): September 30, 2017 December 31, 2016 Level Carrying Value Fair Value Carrying Value Fair Value Unsecured Senior Notes, net (a) (b) (c) 2 $ 2,455,383 $ 2,574,990 $ 1,807,200 $ 1,828,829 Non-recourse mortgages, net (a) (b) (d) 3 1,253,051 1,265,075 1,706,921 1,711,364 Note receivable (d) 3 10,070 9,740 10,351 10,046 __________ (a) The carrying value of Unsecured Senior Notes, net ( Note 10 ) includes unamortized deferred financing costs of $15.0 million and $12.1 million at September 30, 2017 and December 31, 2016 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $1.0 million and $1.3 million at September 30, 2017 and December 31, 2016 , respectively. (b) The carrying value of Unsecured Senior Notes, net includes unamortized discount of $10.2 million and $7.8 million at September 30, 2017 and December 31, 2016 , respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $1.4 million and $0.2 million at September 30, 2017 and December 31, 2016 , respectively. (c) We determined the estimated fair value of the Unsecured Senior Notes using quoted market prices in an open market with limited trading volume, where available. In cases where there was no trading volume, we determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants. (d) We determined the estimated fair value of these financial instruments using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates take into account interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. |
Risk Management and Use of De34
Risk Management and Use of Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 Balance Sheet Location Asset Derivatives Fair Value at Liability Derivatives Fair Value at September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Foreign currency forward contracts Other assets, net $ 15,636 $ 37,040 $ — $ — Foreign currency collars Other assets, net 5,837 17,382 — — Interest rate swaps Other assets, net 227 190 — — Interest rate cap Other assets, net 24 45 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — (4,472 ) — Interest rate swaps Accounts payable, accrued expenses and other liabilities — — (1,822 ) (2,996 ) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 3,551 3,752 — — Interest rate swap (a) Other assets, net 14 9 — — Total derivatives $ 25,289 $ 58,418 $ (6,294 ) $ (2,996 ) __________ (a) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) (a) Three Months Ended September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2017 2016 2017 2016 Foreign currency collars $ (5,398 ) $ (439 ) $ (16,002 ) $ 3,618 Foreign currency forward contracts (4,752 ) (3,622 ) (16,422 ) (7,830 ) Interest rate swaps 250 961 779 (1,536 ) Interest rate caps (17 ) (29 ) (26 ) (21 ) Derivatives in Net Investment Hedging Relationships (b) Foreign currency forward contracts (1,171 ) (2,200 ) (5,347 ) (3,357 ) Total $ (11,088 ) $ (5,329 ) $ (37,018 ) $ (9,126 ) Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Foreign currency forward contracts Other income and (expenses) $ 1,454 $ 1,773 $ 5,336 $ 5,163 Foreign currency collars Other income and (expenses) 735 654 3,154 1,259 Interest rate swaps and caps Interest expense (286 ) (512 ) (1,024 ) (1,578 ) Total $ 1,903 $ 1,915 $ 7,466 $ 4,844 __________ (a) Excludes net losses of $0.4 million and net gains of less than $0.1 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2017 and 2016 , respectively, and net losses of $0.9 million and $0.2 million for the nine months ended September 30, 2017 and 2016 , respectively. (b) The effective portion of the changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss) . |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives Not in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Foreign currency collars Other income and (expenses) $ (225 ) $ 78 $ (718 ) $ 257 Stock warrants Other income and (expenses) 134 335 (201 ) 134 Foreign currency forward contracts Other income and (expenses) (19 ) — (19 ) — Interest rate swaps Other income and (expenses) 2 401 11 2,656 Derivatives in Cash Flow Hedging Relationships Interest rate swaps (a) Interest expense 153 165 455 428 Foreign currency forward contracts Other income and (expenses) (14 ) (55 ) (75 ) 86 Foreign currency collars Other income and (expenses) (13 ) (26 ) (11 ) 12 Total $ 18 $ 898 $ (558 ) $ 3,573 __________ (a) Relates to the ineffective portion of the hedging relationship. |
Schedule of Derivative Instruments | The interest rate swaps and caps that our consolidated subsidiaries had outstanding at September 30, 2017 are summarized as follows (currency in thousands): Number of Instruments Notional Amount Fair Value at (a) Interest Rate Derivatives Designated as Cash Flow Hedging Instruments Interest rate swaps 11 104,966 USD $ (1,455 ) Interest rate swap 1 5,813 EUR (140 ) Interest rate cap 1 30,517 EUR 24 Not Designated as Cash Flow Hedging Instruments Interest rate swap (b) 1 2,890 USD 14 $ (1,557 ) __________ (a) Fair value amounts are based on the exchange rate of the euro at September 30, 2017 , as applicable. (b) This interest rate swap does not qualify for hedge accounting; however, it does protect against fluctuations in interest rates related to the underlying variable-rate debt. The following table presents the foreign currency derivative contracts we had outstanding at September 30, 2017 , which were designated as cash flow hedges (currency in thousands): Number of Instruments Notional Fair Value at September 30, 2017 Foreign Currency Derivatives Designated as Cash Flow Hedging Instruments Foreign currency forward contracts 25 77,208 EUR $ 12,553 Foreign currency collars 24 40,750 GBP 5,316 Foreign currency collars 24 87,150 EUR (3,951 ) Foreign currency forward contracts 5 2,680 GBP 603 Foreign currency forward contracts 9 11,411 AUD 404 Designated as Net Investment Hedging Instruments Foreign currency forward contracts 3 74,463 AUD 2,076 $ 17,001 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table presents a summary of our Senior Unsecured Credit Facility (dollars in millions): Interest Rate at (a) Maturity Date at September 30, 2017 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2017 December 31, 2016 Unsecured Term Loans: Amended Term Loan — borrowing in euros (b) (c) EURIBOR + 1.10% 2/22/2022 $ 279.0 $ — Delayed Draw Term Loan — borrowing in euros (c) EURIBOR + 1.10% 2/22/2022 104.7 — Prior Term Loan — borrowing in U.S. dollars (d) N/A N/A — 250.0 383.7 250.0 Unsecured Revolving Credit Facility: Unsecured Revolving Credit Facility — borrowing in U.S. dollars LIBOR + 1.00% 2/22/2021 113.0 390.0 Unsecured Revolving Credit Facility — borrowing in euros (c) EURIBOR + 1.00% 2/22/2021 111.2 286.7 224.2 676.7 $ 607.9 $ 926.7 __________ (a) The applicable interest rate at September 30, 2017 was based on the credit rating for our Unsecured Senior Notes of BBB/Baa2 . (b) Balance excludes unamortized deferred financing costs of $0.2 million and unamortized discount of $1.3 million at September 30, 2017 . (c) EURIBOR means Euro Interbank Offered Rate. (d) Balance excludes unamortized deferred financing costs of less than $0.1 million at December 31, 2016 . |
Schedule of Debt | The following table presents a summary of our Unsecured Senior Notes outstanding at September 30, 2017 (currency in millions): Original Issue Discount Effective Interest Rate Principal Outstanding Balance at Unsecured Senior Notes, net (a) Issue Date Principal Amount Price of Par Value Coupon Rate Maturity Date September 30, 2017 December 31, 2016 2.0% Senior Notes 1/21/2015 € 500.0 99.220 % $ 4.6 2.107 % 2.0 % 1/20/2023 $ 590.3 $ 527.1 4.6% Senior Notes 3/14/2014 $ 500.0 99.639 % $ 1.8 4.645 % 4.6 % 4/1/2024 500.0 500.0 2.25% Senior Notes 1/19/2017 € 500.0 99.448 % $ 2.9 2.332 % 2.25 % 7/19/2024 590.3 — 4.0% Senior Notes 1/26/2015 $ 450.0 99.372 % $ 2.8 4.077 % 4.0 % 2/1/2025 450.0 450.0 4.25% Senior Notes 9/12/2016 $ 350.0 99.682 % $ 1.1 4.290 % 4.25 % 10/1/2026 350.0 350.0 $ 2,480.6 $ 1,827.1 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $15.0 million and $12.1 million , and unamortized discount totaling $10.2 million and $7.8 million , at September 30, 2017 and December 31, 2016 , respectively. |
Fiscal Year Maturity Schedule | Scheduled debt principal payments during the remainder of 2017 , each of the next four calendar years following December 31, 2017 , and thereafter through 2027 are as follows (in thousands): Years Ending December 31, Total (a) 2017 (remainder) $ 40,784 2018 278,163 2019 99,384 2020 221,547 2021 384,004 Thereafter through 2027 3,320,040 Total principal payments 4,343,922 Unamortized deferred financing costs (16,210 ) Unamortized discount, net (b) (12,874 ) Total $ 4,314,838 __________ (a) Certain amounts are based on the applicable foreign currency exchange rate at September 30, 2017 . (b) Represents the unamortized discount on the Unsecured Senior Notes of $10.2 million in aggregate, unamortized discount on the Unsecured Term Loans of $1.3 million , and unamortized discount of $1.4 million in aggregate resulting from the assumption of property-level debt in connection with both the CPA ® :15 Merger and the CPA ® :16 Merger ( Note 1 ). |
Stock-Based Compensation and 36
Stock-Based Compensation and Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Share Based Compensation Stock Option Activity | Nonvested RSAs, RSUs, and PSUs at September 30, 2017 and changes during the nine months ended September 30, 2017 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Nonvested at January 1, 2017 356,865 $ 61.63 310,018 $ 73.80 Granted (a) 193,467 62.19 107,934 75.39 Vested (b) (169,560 ) 62.77 (132,412 ) 74.21 Forfeited (41,957 ) 61.09 (45,258 ) 76.91 Adjustment (c) — — 28,271 63.24 Nonvested at September 30, 2017 (d) 338,815 $ 61.45 268,553 $ 75.18 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 2017 , we used a risk-free interest rate of 1.5% , an expected volatility rate of 17.1% , and assumed a dividend yield of zero . (b) The total fair value of shares vested during the nine months ended September 30, 2017 was $20.5 million . Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 2017 and December 31, 2016 , we had an obligation to issue 1,135,563 and 1,217,274 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $46.7 million and $50.2 million , respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2017 , total unrecognized compensation expense related to these awards was approximately $21.4 million , with an aggregate weighted-average remaining term of 1.9 years. |
Earnings Per Share Reconciliation | The following table summarizes basic and diluted earnings (in thousands, except share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income attributable to W. P. Carey $ 80,278 $ 110,943 $ 202,080 $ 220,043 Net income attributable to nonvested participating RSUs and RSAs (239 ) (386 ) (600 ) (766 ) Net income — basic and diluted $ 80,039 $ 110,557 $ 201,480 $ 219,277 Weighted-average shares outstanding — basic 108,019,292 107,221,668 107,751,672 106,493,145 Effect of dilutive securities 124,402 246,361 195,818 360,029 Weighted-average shares outstanding — diluted 108,143,694 107,468,029 107,947,490 106,853,174 |
Redeemable Noncontrolling Interest | The following table presents a reconciliation of redeemable noncontrolling interest (in thousands): Nine Months Ended September 30, 2017 2016 Beginning balance $ 965 $ 14,944 Distributions — (13,418 ) Redemption value adjustment — (561 ) Ending balance $ 965 $ 965 |
Reclassification Out of Accumulated Other Comprehensive Income | The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended September 30, 2017 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 24,636 $ (267,868 ) $ (416 ) $ (243,648 ) Other comprehensive income before reclassifications (8,367 ) 25,417 66 17,116 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Interest expense 286 — — 286 Other income and (expenses) (2,189 ) — — (2,189 ) Total (1,903 ) 3,562 — 1,659 Net current period other comprehensive income (10,270 ) 28,979 66 18,775 Net current period other comprehensive gain attributable to noncontrolling interests 8 (4,716 ) — (4,708 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Three Months Ended September 30, 2016 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 34,744 $ (240,985 ) $ 40 $ (206,201 ) Other comprehensive loss before reclassifications (1,178 ) (11,824 ) (7 ) (13,009 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 512 — — 512 Other income and (expenses) (2,427 ) — — (2,427 ) Total (1,915 ) — — (1,915 ) Net current period other comprehensive loss (3,093 ) (11,824 ) (7 ) (14,924 ) Net current period other comprehensive gain attributable to noncontrolling interests 17 (218 ) — (201 ) Ending balance $ 31,668 $ (253,027 ) $ 33 $ (221,326 ) Nine Months Ended September 30, 2017 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 46,935 $ (301,330 ) $ (90 ) $ (254,485 ) Other comprehensive income before reclassifications (25,108 ) 68,124 (260 ) 42,756 Amounts reclassified from accumulated other comprehensive loss to: Gain on sale of real estate, net of tax ( Note 15 ) — 3,562 — 3,562 Interest expense 1,024 — — 1,024 Other income and (expenses) (8,490 ) — — (8,490 ) Total (7,466 ) 3,562 — (3,904 ) Net current period other comprehensive income (32,574 ) 71,686 (260 ) 38,852 Net current period other comprehensive gain attributable to noncontrolling interests 13 (13,961 ) — (13,948 ) Ending balance $ 14,374 $ (243,605 ) $ (350 ) $ (229,581 ) Nine Months Ended September 30, 2016 Gains and Losses on Derivative Instruments Foreign Currency Translation Adjustments Gains and Losses on Marketable Securities Total Beginning balance $ 37,650 $ (209,977 ) $ 36 $ (172,291 ) Other comprehensive loss before reclassifications (1,155 ) (41,999 ) (3 ) (43,157 ) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 1,578 — — 1,578 Other income and (expenses) (6,422 ) — — (6,422 ) Total (4,844 ) — — (4,844 ) Net current period other comprehensive loss (5,999 ) (41,999 ) (3 ) (48,001 ) Net current period other comprehensive gain attributable to noncontrolling interests 17 (1,051 ) — (1,034 ) Ending balance $ 31,668 $ (253,027 ) $ 33 $ (221,326 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present a summary of comparative results and assets for these business segments (in thousands): Owned Real Estate Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Lease revenues $ 161,511 $ 163,786 $ 475,547 $ 506,358 Operating property revenues 8,449 8,524 23,652 23,696 Reimbursable tenant costs 5,397 6,537 15,940 19,237 Lease termination income and other 1,227 1,224 4,234 34,603 176,584 180,071 519,373 583,894 Operating Expenses Depreciation and amortization 62,970 61,740 186,481 210,557 General and administrative 11,234 7,453 27,311 25,653 Property expenses, excluding reimbursable tenant costs 10,556 10,193 31,196 38,475 Reimbursable tenant costs 5,397 6,537 15,940 19,237 Stock-based compensation expense 1,880 1,572 4,733 4,316 Other expenses 65 — 1,138 2,975 Impairment charges — 14,441 — 49,870 Restructuring and other compensation — — — 4,413 92,102 101,936 266,799 355,496 Other Income and Expenses Interest expense (41,182 ) (44,349 ) (125,374 ) (139,496 ) Equity in earnings of equity method investments in real estate 3,740 3,230 9,533 9,585 Other income and (expenses) (4,918 ) 3,244 (6,249 ) 7,681 (42,360 ) (37,875 ) (122,090 ) (122,230 ) Income before income taxes and gain on sale of real estate 42,122 40,260 130,484 106,168 (Provision for) benefit from income taxes (1,511 ) (530 ) (6,696 ) 6,792 Income before gain on sale of real estate 40,611 39,730 123,788 112,960 Gain on sale of real estate, net of tax 19,257 49,126 22,732 68,070 Net Income from Owned Real Estate 59,868 88,856 146,520 181,030 Net income attributable to noncontrolling interests (3,376 ) (1,359 ) (8,530 ) (6,294 ) Net Income from Owned Real Estate Attributable to W. P. Carey $ 56,492 $ 87,497 $ 137,990 $ 174,736 Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues Asset management revenue $ 17,938 $ 15,978 $ 53,271 $ 45,596 Structuring revenue 9,817 12,301 27,981 30,990 Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 Dealer manager fees 105 1,835 4,430 5,379 Other advisory revenue 99 522 896 522 34,170 45,176 131,968 128,859 Operating Expenses Reimbursable costs from affiliates 6,211 14,540 45,390 46,372 General and administrative 6,002 8,280 25,878 32,469 Subadvisor fees 5,206 4,842 11,598 10,010 Stock-based compensation expense 2,755 2,784 9,916 10,648 Restructuring and other compensation 1,356 — 9,074 7,512 Depreciation and amortization 1,070 1,062 2,838 3,278 Dealer manager fees and expenses 462 3,028 6,544 9,000 Other expenses — — — 2,384 23,062 34,536 111,238 121,673 Other Income and Expenses Equity in earnings of equity method investments in the Managed Programs 12,578 13,573 38,287 38,658 Other income and (expenses) 349 1,857 1,280 1,717 12,927 15,430 39,567 40,375 Income before income taxes 24,035 26,070 60,297 47,561 (Provision for) benefit from income taxes (249 ) (2,624 ) 3,793 (2,254 ) Net Income from Investment Management Attributable to W. P. Carey $ 23,786 $ 23,446 $ 64,090 $ 45,307 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 210,754 $ 225,247 $ 651,341 $ 712,753 Operating expenses 115,164 136,472 378,037 477,169 Other income and (expenses) (29,433 ) (22,445 ) (82,523 ) (81,855 ) Gain on sale of real estate, net of tax 19,257 49,126 22,732 68,070 (Provision for) benefit from income taxes (1,760 ) (3,154 ) (2,903 ) 4,538 Net income attributable to noncontrolling interests (3,376 ) (1,359 ) (8,530 ) (6,294 ) Net income attributable to W. P. Carey $ 80,278 $ 110,943 $ 202,080 $ 220,043 |
Reconciliation Of Assets From Segment To Consolidated | Total Assets at September 30, 2017 December 31, 2016 Owned Real Estate $ 7,975,925 $ 8,104,974 Investment Management 358,486 348,980 Total Company $ 8,334,411 $ 8,453,954 |
Business and Organization - Nar
Business and Organization - Narratives (Details) ft² in Millions | 9 Months Ended |
Sep. 30, 2017ft²segmentpropertytenant | |
Additional disclosures | |
Number of business segments | segment | 2 |
Hotel | |
Additional disclosures | |
Number of real estate properties | 2 |
Owned Real Estate | |
Additional disclosures | |
Number of real estate properties | 890 |
Square footage of real estate properties | ft² | 85.9 |
Number of tenants | tenant | 211 |
Occupancy rate | 99.80% |
Owned Real Estate | Hotel | |
Additional disclosures | |
Number of real estate properties | 2 |
Managed REITs | Investment Management | |
Additional disclosures | |
Number of real estate properties | 461 |
Square footage of real estate properties | ft² | 54.1 |
Number of tenants | tenant | 207 |
Occupancy rate | 99.70% |
Managed Reits and CESH I | Investment Management | |
Additional disclosures | |
Number of real estate properties | 166 |
Square footage of real estate properties | ft² | 20.2 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017USD ($)vie | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)vie | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)vie | Dec. 31, 2015USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | |
Basis of Consolidation | ||||||||
Variable interest entities, count | vie | 28 | 28 | ||||||
Variable interest entities consolidated, count | vie | 21 | 21 | ||||||
Variable interest entities unconsolidated, count | vie | 7 | 7 | 7 | |||||
Variable interest entity, maximum exposure to loss | $ 152,800,000 | $ 152,800,000 | $ 152,900,000 | |||||
Assets | 8,334,411,000 | 8,334,411,000 | 8,453,954,000 | |||||
Cash and cash equivalents | 169,770,000 | $ 209,483,000 | 169,770,000 | $ 209,483,000 | 155,482,000 | $ 157,227,000 | ||
Other assets, net | 287,481,000 | 287,481,000 | 282,149,000 | |||||
Gain on deconsolidation | $ 1,900,000 | 1,900,000 | ||||||
Windfall tax benefit | $ 600,000 | $ 3,600,000 | $ 6,700,000 | $ 12,500,000 | ||||
Income taxes, net | ||||||||
Basis of Consolidation | ||||||||
Prior period adjustments | 3,000,000 | |||||||
Owned Real Estate | ||||||||
Basis of Consolidation | ||||||||
Variable interest entities unconsolidated, count | vie | 6 | 6 | 6 | |||||
CESH I | ||||||||
Basis of Consolidation | ||||||||
Assets | $ 30,300,000 | |||||||
Cash and cash equivalents | 15,400,000 | |||||||
Other assets, net | $ 14,900,000 | |||||||
Managed Programs | ||||||||
Basis of Consolidation | ||||||||
Variable interest entities unconsolidated, count | vie | 1 | 1 | 1 | |||||
CESH I | ||||||||
Basis of Consolidation | ||||||||
Initial aggregate offering amount | $ 100,000,000 | |||||||
Proceeds from limited partner units | $ 14,200,000 | |||||||
CESH I | Maximum | ||||||||
Basis of Consolidation | ||||||||
Initial aggregate offering amount | $ 150,000,000 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Land, buildings and improvements | $ 5,429,239 | $ 5,285,837 |
Net investments in direct financing leases | 717,184 | 684,059 |
In-place lease and other intangible assets | 1,204,770 | 1,172,238 |
Above-market rent intangible assets | 639,140 | 632,383 |
Accumulated depreciation and amortization | (1,249,024) | (1,018,864) |
Total assets | 8,334,411 | 8,453,954 |
Liabilities | ||
Non-recourse mortgages, net | 1,253,051 | 1,706,921 |
Total liabilities | 4,883,497 | 5,027,849 |
Variable Interest Entity | ||
Assets | ||
Land, buildings and improvements | 910,495 | 886,148 |
Net investments in direct financing leases | 39,897 | 60,294 |
In-place lease and other intangible assets | 265,852 | 245,480 |
Above-market rent intangible assets | 102,432 | 98,043 |
Accumulated depreciation and amortization | (231,323) | (184,710) |
Total assets | 1,129,154 | 1,150,093 |
Liabilities | ||
Non-recourse mortgages, net | 128,659 | 406,574 |
Total liabilities | $ 202,514 | $ 548,659 |
Agreements and Transactions w41
Agreements and Transactions with Related Parties - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Advisory revenue | $ 34,170 | $ 45,176 | $ 131,968 | $ 128,859 |
Percentage of Available cash distribution to advisor | 10.00% | |||
Maximum | ||||
Other Transactions with Affiliates | ||||
Ownership interest in joint ventures | 90.00% | |||
Minimum | ||||
Other Transactions with Affiliates | ||||
Ownership interest in joint ventures | 3.00% | |||
CCIF | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Reimbursement percentage | 50.00% | |||
CWI | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Percentage of fees earned by advisor paid to subadvisor | 20.00% | |||
CESH I | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Advisory revenue | $ 100 | $ 500 | $ 700 | $ 500 |
CWI 2 | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Percentage of fees earned by advisor paid to subadvisor | 25.00% | |||
Gross proceeds | CESH I | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Advisory fee rate | 2.50% | |||
Average net asset | CCIF | ||||
Distributions Of Available Cash and Deferred Revenue Earned | ||||
Reimbursement percentage | 1.75% |
Agreements and Transactions w42
Agreements and Transactions with Related Parties - Related Party Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue from related parties: | ||||
Asset management revenue | $ 17,938 | $ 15,955 | $ 53,271 | $ 45,535 |
Distributions of Available Cash | 12,047 | 10,876 | 34,568 | 32,018 |
Structuring revenue | 9,817 | 12,301 | 27,981 | 30,990 |
Reimbursable costs from affiliates | 6,211 | 14,540 | 45,390 | 46,372 |
Interest income on deferred acquisition fees and loans to affiliates | 447 | 130 | 1,464 | 492 |
Dealer manager fees | 105 | 1,835 | 4,430 | 5,379 |
Other advisory revenue | 99 | 522 | 896 | 522 |
Total deferred revenue earned | $ 46,664 | $ 56,159 | $ 168,000 | $ 161,308 |
Agreements and Transactions w43
Agreements and Transactions with Related Parties - Related Party Income, by Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction | ||||
Revenue from related parties | $ 46,664 | $ 56,159 | $ 168,000 | $ 161,308 |
CPA: 17 - Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 15,383 | 16,616 | 55,645 | 51,820 |
CPA:18 - Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 4,042 | 5,259 | 18,361 | 22,851 |
CWI | ||||
Related Party Transaction | ||||
Revenue from related parties | 11,940 | 7,771 | 26,051 | 26,453 |
CWI 2 | ||||
Related Party Transaction | ||||
Revenue from related parties | 11,643 | 19,924 | 45,206 | 49,233 |
CCIF | ||||
Related Party Transaction | ||||
Revenue from related parties | 1,787 | 3,388 | 12,777 | 7,750 |
CESH I | ||||
Related Party Transaction | ||||
Revenue from related parties | $ 1,869 | $ 3,201 | $ 9,960 | $ 3,201 |
Agreements and Transactions w44
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Due from affiliates | ||
Short-term loans to affiliates, including accrued interest | $ 132,210 | $ 237,613 |
Deferred acquisition fees receivable, including accrued interest | 10,720 | 21,967 |
Accounts receivable | 5,358 | 5,005 |
Reimbursable costs | 3,943 | 4,427 |
Current acquisition fees receivable | 1,508 | 8,024 |
Asset management fees receivable | 539 | 2,449 |
Organization and offering costs | 58 | 784 |
Distribution and shareholder servicing fees | 0 | 19,341 |
Due from affiliates | $ 154,336 | $ 299,610 |
Agreements and Transactions w45
Agreements and Transactions with Related Parties - Asset Management and Structuring Revenue (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CPA: 17 - Global | ||
Revenue from related parties | ||
Asset management fees receivable in cash | 50.00% | |
Asset management fees receivable in shares | 50.00% | |
CWI | ||
Revenue from related parties | ||
Percentage of fees earned by advisor paid to subadvisor | 20.00% | |
CWI 2 | ||
Revenue from related parties | ||
Percentage of fees earned by advisor paid to subadvisor | 25.00% | |
CWI REITs | ||
Structuring revenue | ||
Loan refinancing fee (percentage) | 1.00% | |
Contract sales price of investment | CWI REITs | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% | |
Percentage of structuring fees paid in cash | 50.00% | |
Percentage of structuring fees Paid in shares | 50.00% | |
Contract sales price of investment | CESH I | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% | |
Average gross assets | CCIF | ||
Revenue from related parties | ||
Percentage of fees earned by advisor paid to subadvisor | 50.00% | |
Average market value of investment | CWI | ||
Revenue from related parties | ||
Percentage of fees earned by advisor paid to subadvisor | 20.00% | |
Average market value of investment | CWI 2 | ||
Revenue from related parties | ||
Percentage of fees earned by advisor paid to subadvisor | 25.00% | |
Minimum | Average equity value | CPA: 17 - Global | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 0.50% | |
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 1.00% | |
Minimum | Average equity value | CPA:18 - Global | Class A | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 0.50% | |
Minimum | Average gross assets | CCIF | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 1.75% | |
Maximum | Contract sales price of investment | Managed Programs | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 6.00% | |
Maximum | Average equity value | CPA: 17 - Global | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 1.75% | |
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 1.75% | |
Maximum | Average equity value | CPA:18 - Global | Class A | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 1.50% | |
Maximum | Average gross assets | CCIF | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 2.00% | |
Long-term net lease | CPA: 17 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% | |
Long-term net lease | CPA:18 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% | |
Long-term net lease | CPA REITs | ||
Structuring revenue | ||
Installment period for deferred acquisition fee receivable | three interest-bearing annual installments | |
Lodging-related investments | CWI | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 0.50% | |
Lodging-related investments | CWI 2 | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 0.55% | |
Lodging-related investments | CWI REITs | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% | |
Gross assets fair value | CESH I | ||
Revenue from related parties | ||
Percentage of asset management fees earned | 1.00% | |
Upon Completion | Long-term net lease | CPA: 17 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% | |
Upon Completion | Long-term net lease | CPA:18 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.50% | |
Deferred | Long-term net lease | CPA: 17 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% | |
Deferred | Long-term net lease | CPA:18 - Global | ||
Structuring revenue | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2.00% |
Agreements and Transactions w46
Agreements and Transactions with Related Parties - Selling Commissions, Dealer Manager Fees and Shareholder Servicing Fees (Details) - $ / shares | Sep. 30, 2017 | Sep. 10, 2017 | Jul. 31, 2017 | Mar. 31, 2017 |
CCIF | Minimum | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Selling commission per share sold, percentage | 0.00% | |||
Dealer manager fee per share fee, percentage | 2.50% | |||
CCIF | Maximum | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Selling commission per share sold, percentage | 3.00% | |||
Dealer manager fee per share fee, percentage | 3.00% | |||
CESH I | Maximum | Gross Offering Proceeds | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Selling commission per share sold, percentage | 7.00% | |||
Dealer manager fee per share fee, percentage | 3.00% | |||
CCIF 2016T | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Shareholder servicing, percentage | 0.90% | |||
Class A | CWI 2 | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Selling commission per share sold | $ 0.84 | $ 0.70 | ||
Dealer manager fee per share sold | 0.36 | 0.30 | ||
Class C | CPA:18 - Global | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Shareholder servicing, percentage | 1.00% | |||
Underwriting compensation limit, percentage | 10.00% | |||
Class T | CWI 2 | ||||
Reimbursed costs from affiliates and wholesaling revenue | ||||
Selling commission per share sold | 0.23 | 0.19 | ||
Dealer manager fee per share sold | $ 0.31 | $ 0.26 | ||
Shareholder servicing, percentage | 1.00% | |||
Underwriting compensation limit, percentage | 10.00% |
Agreements and Transactions w47
Agreements and Transactions with Related Parties - Personnel, Overhead Costs, Organization and Offering (Details) | Sep. 30, 2017 | Dec. 31, 2016 |
Reimbursed Costs | ||
Required repayment percentage of organization and offering cost | 50.00% | |
CPA REITs | ||
Reimbursed Costs | ||
Maximum personnel and overhead reimbursement, percentage | 2.00% | 2.20% |
CCIF | ||
Reimbursed Costs | ||
Maximum percent of offering proceeds | 1.50% | |
Maximum | CWI 2 | ||
Reimbursed Costs | ||
Aggregate gross proceeds threshold | 1.50% |
Agreements and Transactions w48
Agreements and Transactions with Related Parties - Loans Outstanding to Related Party (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Maximum Loan Amount Authorized | $ 2,350,000,000 | |
Loans receivable, related party | 131,296,000 | $ 237,500,000 |
Accrued interest | 900,000 | 100,000 |
CWI | ||
Related Party Transaction [Line Items] | ||
Maximum Loan Amount Authorized | 100,000,000 | |
Loans receivable, related party | 97,835,000 | 0 |
CWI | Bridge Loan | ||
Related Party Transaction [Line Items] | ||
Loans receivable, related party | 75,000,000 | |
CWI | Working Capital Facility | ||
Related Party Transaction [Line Items] | ||
Loans receivable, related party | $ 25,000,000 | |
CWI | LIBOR | ||
Related Party Transaction [Line Items] | ||
Variable interest rate (percentage) | 1.00% | |
CPA:18 - Global | ||
Related Party Transaction [Line Items] | ||
Maximum Loan Amount Authorized | $ 50,000,000 | |
Loans receivable, related party | $ 19,000,000 | 27,500,000 |
CPA:18 - Global | LIBOR | ||
Related Party Transaction [Line Items] | ||
Variable interest rate (percentage) | 1.00% | |
CESH I | ||
Related Party Transaction [Line Items] | ||
Maximum Loan Amount Authorized | $ 35,000,000 | |
Loans receivable, related party | $ 14,461,000 | 0 |
CESH I | LIBOR | ||
Related Party Transaction [Line Items] | ||
Variable interest rate (percentage) | 1.00% | |
CWI 2 | ||
Related Party Transaction [Line Items] | ||
Loans receivable, related party | $ 0 | $ 210,000,000 |
Land, Building and Improvemen49
Land, Building and Improvements and Assets Held for Sale - Narratives (Details) $ in Thousands | Jun. 27, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($)propertytenant | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)propertytenant | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)propertytenant |
Real Estate Properties | |||||||||
Increase in value of balance sheet item due to foreign currency translation | $ 28,979 | $ (11,824) | $ 71,686 | $ (41,999) | |||||
Depreciation | 36,300 | 35,400 | 107,500 | 107,300 | |||||
Investments in real estate | |||||||||
Net investments in direct financing leases | 717,184 | 717,184 | $ 684,059 | ||||||
Land, buildings and improvements | 5,429,239 | 5,429,239 | $ 5,285,837 | ||||||
Funds capitalized | 43,500 | ||||||||
Accrued non-cash investing activities | $ 6,800 | ||||||||
Number of construction projects | property | 5 | 3 | |||||||
Unfunded commitment | 109,600 | $ 109,600 | $ 135,200 | ||||||
Construction in progress placed into service | 59,000 | 35,500 | |||||||
Assets held for sale | $ 10,596 | $ 10,596 | 26,247 | ||||||
Deferred tax liability held for sale | $ 2,500 | ||||||||
Held-for-sale | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 1 | 1 | 1 | ||||||
Properties sold | property | 9 | ||||||||
Number of net lease properties sold | property | 1 | ||||||||
Windsor Connecticut | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 3,300 | ||||||||
Coconut Creek, Florida | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 18,200 | ||||||||
Montaro, Australia | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 15,900 | ||||||||
McCalla, Alabama | |||||||||
Investments in real estate | |||||||||
Construction in progress placed into service | $ 21,600 | ||||||||
Reclassification | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 6 | 6 | |||||||
Net investments in direct financing leases | $ (1,600) | $ (1,600) | |||||||
Land, buildings and improvements | $ 1,600 | 1,600 | |||||||
Operating Lease | |||||||||
Real Estate Properties | |||||||||
Increase in value of balance sheet item due to foreign currency translation | $ 160,500 | ||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 2 | 2 | |||||||
Decrease in carrying value of real estate | $ 72,400 | ||||||||
Number of tenants | tenant | 2 | 2 | 2 | ||||||
Purchase option exercise price, value | $ 23,100 | ||||||||
Assets held for sale carrying value | $ 17,500 | $ 17,500 | |||||||
Operating Lease | Industrial Facility in Chicago, Illinois | |||||||||
Investments in real estate | |||||||||
Investment purchase price | $ 6,000 | ||||||||
Land acquired | 2,200 | ||||||||
Building acquired | 2,500 | ||||||||
Purchase commitment | 3,600 | ||||||||
Operating Lease | Industrial Facility in Chicago, Illinois | In-place lease | |||||||||
Investments in real estate | |||||||||
Intangible assets acquired | $ 1,300 | ||||||||
Hotel | |||||||||
Investments in real estate | |||||||||
Number of real estate properties | property | 2 | 2 | |||||||
Operating real estate | |||||||||
Real Estate Properties | |||||||||
Depreciation | $ 1,100 | $ 1,100 | $ 3,200 | $ 3,200 | |||||
EUR | |||||||||
Real Estate Properties | |||||||||
Increase in exchange rate | 12.00% | 12.00% | |||||||
Foreign currency exchange rate | 1.1806 | 1.1806 | 1.0541 |
Land, Building and Improvemen50
Land, Building and Improvements and Assets Held for Sale - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,249,024) | $ (1,018,864) |
Investments in real estate | 8,000,929 | 7,800,764 |
Operating Lease | ||
Real Estate Investment Property At Cost | ||
Land | 1,132,569 | 1,128,933 |
Buildings | 4,194,213 | 4,053,334 |
Real estate under construction | 20,373 | 21,859 |
Less: Accumulated depreciation | (578,592) | (472,294) |
Investments in real estate | 4,768,563 | 4,731,832 |
Operating real estate | ||
Real Estate Investment Property At Cost | ||
Land | 6,041 | 6,041 |
Buildings | 76,043 | 75,670 |
Less: Accumulated depreciation | (15,345) | (12,143) |
Investments in real estate | $ 66,739 | $ 69,568 |
Land, Building and Improvemen51
Land, Building and Improvements and Assets Held for Sale - Summary of Assets Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Long Lived Assets Held-for-sale | ||
Assets held for sale | $ 10,596 | $ 26,247 |
Real estate | ||
Long Lived Assets Held-for-sale | ||
Assets held for sale | 6,146 | 0 |
Intangible assets, net | ||
Long Lived Assets Held-for-sale | ||
Assets held for sale | 4,450 | 0 |
Net investments in direct financing leases | ||
Long Lived Assets Held-for-sale | ||
Assets held for sale | $ 0 | $ 26,247 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Finance Receivables | |||||
Interest income from direct financing lease | $ 16,800 | $ 17,600 | $ 49,300 | $ 53,900 | |
Increase in value of balance sheet item due to foreign currency translation | 28,979 | $ (11,824) | 71,686 | (41,999) | |
Net investments in direct financing leases | 717,184 | 717,184 | $ 684,059 | ||
Land, buildings and improvements | 5,429,239 | 5,429,239 | 5,285,837 | ||
Decrease in direct financing lease | 1,700 | ||||
Notes receivable, net | $ 10,100 | $ 10,100 | 10,400 | ||
Financing receivable credit quality additional information | We generally seek investments in facilities that we believe are critical to a tenant’s business and that we believe have a low risk of tenant default. | ||||
Allowance for doubtful accounts, receivable | $ 13,300 | ||||
Allowance for credit loss | $ 7,100 | ||||
Financing receivable credit quality range of dates ratings updated | The credit quality evaluation of our finance receivables was last updated in the third quarter of 2017. | ||||
Reclassification | |||||
Finance Receivables | |||||
Number of real estate properties | property | 6 | 6 | |||
Net investments in direct financing leases | $ (1,600) | $ (1,600) | |||
Land, buildings and improvements | $ 1,600 | 1,600 | |||
Direct financing lease | |||||
Finance Receivables | |||||
Increase in value of balance sheet item due to foreign currency translation | $ 38,900 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Sep. 30, 2017USD ($)tenant | Dec. 31, 2016USD ($)tenant |
Credit Quality Of Finance Receivables | ||
Net investments in direct financing leases | $ 727,254 | $ 694,410 |
Internally Assigned Grade1-3 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 24 | 27 |
Net investments in direct financing leases | $ 604,081 | $ 621,955 |
Internally Assigned Grade 4 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 8 | 5 |
Net investments in direct financing leases | $ 123,173 | $ 70,811 |
Internally Assigned Grade 5 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants | tenant | 0 | 1 |
Net investments in direct financing leases | $ 0 | $ 1,644 |
Goodwill and Other Intangible54
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Thousands | Jun. 27, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net | ||||||
Goodwill | $ 643,321 | $ 643,321 | $ 635,920 | |||
Amortization of intangible assets | 38,400 | $ 38,100 | 114,100 | $ 125,600 | ||
Owned Real Estate | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Goodwill foreign currency translation adjustments | 7,400 | |||||
Goodwill | 579,700 | 579,700 | 572,300 | |||
Investment Management | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Goodwill | $ 63,600 | $ 63,600 | $ 63,600 | |||
In-place lease | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Finite lived intangible assets useful life | 21 years | |||||
In-place lease | Industrial Facility in Chicago, Illinois | Operating Lease | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Intangible assets acquired | $ 1,300 | |||||
Minimum | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Finite lived intangible assets useful life | 3 years | |||||
Maximum | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Finite lived intangible assets useful life | 40 years | |||||
Maximum | Below-market ground lease | ||||||
Finite-Lived Intangible Assets, Net | ||||||
Finite lived intangible assets useful life | 99 years |
Goodwill and Other Intangible55
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortizable Intangible Assets | ||
Less: accumulated amortization | $ (662,446) | $ (539,495) |
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 644,291 | 636,786 |
Total intangible assets, gross | 2,509,855 | 2,463,084 |
Total intangible assets, net | 1,847,409 | 1,923,589 |
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (149,525) | (146,085) |
Less: accumulated amortization | 49,256 | 40,593 |
Net amortizable intangible liabilities | (100,269) | (105,492) |
Indefinite Lived Intangible Liabilities | ||
Total intangible liabilities, gross | (166,236) | (162,796) |
Total intangible liabilities, net | (116,980) | (122,203) |
Below-market purchase option | ||
Indefinite Lived Intangible Liabilities | ||
Indefinite-lived intangible liabilities | (16,711) | (16,711) |
Below-market rent | ||
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (136,319) | (133,137) |
Less: accumulated amortization | 46,377 | 38,231 |
Net amortizable intangible liabilities | (89,942) | (94,906) |
Above-market ground lease | ||
Amortizable Intangible Liabilities | ||
Finite-lived intangible liabilities, gross | (13,206) | (12,948) |
Less: accumulated amortization | 2,879 | 2,362 |
Net amortizable intangible liabilities | (10,327) | (10,586) |
Goodwill | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 643,321 | 635,920 |
Below-market ground lease | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 970 | 866 |
Contracts including internal software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 22,624 | 22,543 |
Less: accumulated amortization | (7,359) | (5,068) |
Amortizable intangible assets | 15,265 | 17,475 |
Internal-use software development costs | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 18,649 | 18,568 |
Less: accumulated amortization | (7,159) | (5,068) |
Amortizable intangible assets | 11,490 | 13,500 |
Trade name | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 3,975 | 3,975 |
Less: accumulated amortization | (200) | 0 |
Amortizable intangible assets | 3,775 | 3,975 |
Lease intangibles | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 1,842,940 | 1,803,755 |
Less: accumulated amortization | (655,087) | (534,427) |
Amortizable intangible assets | 1,187,853 | 1,269,328 |
In-place lease | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 1,185,107 | 1,148,232 |
Less: accumulated amortization | (398,237) | (322,119) |
Amortizable intangible assets | 786,870 | 826,113 |
Above-market rent | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 639,140 | 632,383 |
Less: accumulated amortization | (255,152) | (210,927) |
Amortizable intangible assets | 383,988 | 421,456 |
Below-market ground lease | ||
Amortizable Intangible Assets | ||
Finite lived intangible assets, gross | 18,693 | 23,140 |
Less: accumulated amortization | (1,698) | (1,381) |
Amortizable intangible assets | $ 16,995 | $ 21,759 |
Equity Investments in the Man56
Equity Investments in the Managed Programs and Real Estate - Narratives (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments in REITs | |||
Distributions of earnings from equity investments | $ 49,365,000 | $ 48,303,000 | |
Owned Real Estate | Unconsolidated Real Estate Investment | |||
Investments in REITs | |||
Distributions of earnings from equity investments | 12,100,000 | 12,400,000 | |
Aggregate unamortized basis difference on equity investments | $ 7,100,000 | $ 6,700,000 | |
CPA: 17 - Global | |||
Investments in REITs | |||
Asset management fees receivable, shares | 243,250 | ||
Distributions of earnings from equity investments | $ 6,100,000 | 5,500,000 | |
CPA: 17 - Global | Owned Real Estate | Jumbo Logestiek Vastgoed B.V. | |||
Investments in REITs | |||
Mortgage debt tenants in common | 75,400,000 | ||
Pro rata share mortgage debt on tenancy in common | 11,300,000 | ||
CPA:17 - Global operating partnership | |||
Investments in REITs | |||
Distributions of earnings from equity investments | 19,200,000 | 17,800,000 | |
CPA:18 - Global | |||
Investments in REITs | |||
Distributions of earnings from equity investments | $ 1,200,000 | 600,000 | |
CPA:18 - Global | Class A | |||
Investments in REITs | |||
Asset management fees receivable, shares | 117,416 | ||
CPA:18 - Global operating partnership | |||
Investments in REITs | |||
Distributions of earnings from equity investments | $ 6,100,000 | 5,300,000 | |
CWI | |||
Investments in REITs | |||
Asset management fees receivable, shares | 110,715 | ||
Distributions of earnings from equity investments | $ 800,000 | 600,000 | |
CWI operating partnership | |||
Investments in REITs | |||
Distributions of earnings from equity investments | 5,700,000 | 6,900,000 | |
CWI 2 | |||
Investments in REITs | |||
Distributions of earnings from equity investments | $ 200,000 | 100,000 | |
CWI 2 | Class A | |||
Investments in REITs | |||
Asset management fees receivable, shares | 68,367 | ||
CWI 2 operating partnership | |||
Investments in REITs | |||
Distributions of earnings from equity investments | $ 3,500,000 | 2,000,000 | |
CCIF | |||
Investments in REITs | |||
Distributions of earnings from equity investments | 900,000 | 600,000 | |
CCIF | Other assets, net | |||
Investments in REITs | |||
Cost method equity investments | 23,300,000 | ||
CESH I | |||
Investments in REITs | |||
Distributions of earnings from equity investments | $ 0 | $ 0 | |
Limited partner interest | 2.50% | ||
Managed Programs | |||
Investments in REITs | |||
Aggregate unamortized basis difference on equity investments | $ 39,500,000 | $ 31,700,000 |
Equity Investments in the Man57
Equity Investments in the Managed Programs and Real Estate - Summary of Earnings from Equity Method Investments in the Managed Programs and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Equity Method Investments | ||||
Distributions of Available Cash (Note 3) | $ 47,820 | $ 48,243 | ||
Proportionate share of equity in earnings of equity investments in the Managed Programs | $ 16,318 | $ 16,803 | 47,820 | 48,243 |
Managed Programs | ||||
Schedule Of Equity Method Investments | ||||
Distributions of Available Cash (Note 3) | 12,047 | 10,876 | 34,568 | 32,018 |
Proportionate share of equity in earnings of equity investments in the Managed Programs | 886 | 2,962 | 4,688 | 7,396 |
Amortization of basis differences on equity investments | (355) | (265) | (969) | (756) |
Total equity in earnings of equity method investments in the Managed Programs | 12,578 | 13,573 | 38,287 | 38,658 |
Jointly Owned Investments | ||||
Schedule Of Equity Method Investments | ||||
Proportionate share of equity in earnings of equity investments in the Managed Programs | 4,244 | 4,197 | 11,404 | 12,456 |
Amortization of basis differences on equity investments | (504) | (967) | (1,871) | (2,871) |
Investment in real estate | ||||
Schedule Of Equity Method Investments | ||||
Proportionate share of equity in earnings of equity investments in the Managed Programs | $ 3,740 | $ 3,230 | $ 9,533 | $ 9,585 |
Equity Investments in the Man58
Equity Investments in the Managed Programs and Real Estate - Summary of Investments in Managed Programs (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in Programs | ||
Equity investments in real estate | $ 327,598 | $ 298,893 |
CPA: 17 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.996% | 3.456% |
Equity investments in real estate | $ 120,464 | $ 99,584 |
CPA:17 - Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.009% | 0.009% |
Equity investments in real estate | $ 0 | $ 0 |
CPA:18 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.298% | 1.616% |
Equity investments in real estate | $ 25,812 | $ 17,955 |
CPA:18 - Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.034% | 0.034% |
Equity investments in real estate | $ 209 | $ 209 |
CWI | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 1.882% | 1.109% |
Equity investments in real estate | $ 23,351 | $ 11,449 |
CWI operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 186 | $ 0 |
CWI 2 | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 1.541% | 0.773% |
Equity investments in real estate | $ 14,171 | $ 5,091 |
CWI 2 operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.015% | 0.015% |
Equity investments in real estate | $ 300 | $ 300 |
CCIF | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.00% | 13.322% |
Equity investments in real estate | $ 0 | $ 23,528 |
CESH I | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.43% | 2.431% |
Equity investments in real estate | $ 3,110 | $ 2,701 |
Managed Programs | ||
Investments in Programs | ||
Equity investments in real estate | $ 187,603 | $ 160,817 |
Equity Investments in the Man59
Equity Investments in the Managed Programs and Real Estate - Equity Method Investments Excluding the Managed Programs (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in Programs | ||
Equity investments in real estate | $ 327,598 | $ 298,893 |
CPA: 17 - Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.996% | 3.456% |
Equity investments in real estate | $ 120,464 | $ 99,584 |
Owned Real Estate | ||
Investments in Programs | ||
Equity investments in real estate | 139,995 | 138,076 |
Owned Real Estate | Third Party | Beach House JV, LLC | ||
Investments in Programs | ||
Equity investments in real estate | $ 15,105 | 15,105 |
Owned Real Estate | CPA: 17 - Global | The New York Times Company | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 45.00% | |
Equity investments in real estate | $ 69,510 | 69,668 |
Owned Real Estate | CPA: 17 - Global | Frontier Spinning Mills, Inc. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 40.00% | |
Equity investments in real estate | $ 24,147 | 24,138 |
Owned Real Estate | CPA: 17 - Global | ALSO Actebis GmbH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 30.00% | |
Equity investments in real estate | $ 12,072 | 11,205 |
Owned Real Estate | CPA: 17 - Global | Jumbo Logestiek Vastgoed B.V. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 15.00% | |
Equity investments in real estate | $ 10,505 | 8,739 |
Owned Real Estate | CPA: 17 - Global | Wagon Automotive GmbH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 33.00% | |
Equity investments in real estate | $ 8,323 | 8,887 |
Owned Real Estate | CPA: 17 - Global | Wanbishi Archives Co. Ltd. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 3.00% | |
Equity investments in real estate | $ 333 | $ 334 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jan. 31, 2017property | Dec. 31, 2016USD ($)property | Jan. 31, 2017property | Sep. 30, 2016USD ($)property | Jun. 30, 2016USD ($)property | Sep. 30, 2016USD ($)property | Sep. 30, 2017USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Unamortized discount | $ 12,874 | ||||||
Total Impairment Charges | $ 14,400 | ||||||
Impaired Portfolio | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Total Impairment Charges | $ 35,400 | ||||||
Number of real estate properties | property | 18 | 14 | 18 | ||||
Properties sold | property | 2 | 1 | 4 | ||||
Impaired Portfolio | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Properties sold | property | 1 | ||||||
Previously Impaired Portfolio | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Number of real estate properties | property | 14 | 14 | |||||
Noncontrolling interests | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Total Impairment Charges | $ 600 | $ 600 | |||||
Unsecured senior notes | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Unamortized discount | $ 7,800 | 10,200 | |||||
Level 2 | Carrying Value | Unsecured senior notes | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Unamortized debt issuance cost | 12,100 | 15,000 | |||||
Unamortized discount | 7,800 | 10,200 | |||||
Level 3 | Fair Value, Measurements, Nonrecurring | Land, buildings and improvements | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Total Impairment Charges | 49,900 | ||||||
Fair value of impaired assets | $ 158,800 | $ 158,800 | |||||
Level 3 | Carrying Value | Non recourse mortgage | |||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||||||
Unamortized debt issuance cost | 1,300 | 1,000 | |||||
Unamortized discount | $ 200 | $ 1,400 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Level 2 | Carrying Value | Unsecured senior notes | ||
Liabilities: | ||
Debt Instrument, Fair Value Disclosure | $ 2,455,383 | $ 1,807,200 |
Level 2 | Fair Value | Unsecured senior notes | ||
Liabilities: | ||
Debt Instrument, Fair Value Disclosure | 2,574,990 | 1,828,829 |
Level 3 | Carrying Value | Notes Receivable | ||
Assets: | ||
Receivable, fair value | 10,070 | 10,351 |
Level 3 | Carrying Value | Non recourse mortgage | ||
Liabilities: | ||
Debt Instrument, Fair Value Disclosure | 1,253,051 | 1,706,921 |
Level 3 | Fair Value | Notes Receivable | ||
Assets: | ||
Receivable, fair value | 9,740 | 10,046 |
Level 3 | Fair Value | Non recourse mortgage | ||
Liabilities: | ||
Debt Instrument, Fair Value Disclosure | $ 1,265,075 | $ 1,711,364 |
Risk Management and Use of De62
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) | Jan. 19, 2017EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2016USD ($) |
Summary of Derivative Instruments | ||||
Net collateral posted for derivatives | $ 0 | $ 0 | ||
Derivative, remaining maturity | 77 months | |||
Total credit exposure on derivatives | $ 19,900,000 | |||
Derivatives, net liability position | 6,500,000 | 3,300,000 | ||
Aggregate termination value for immediate settlement | 6,800,000 | 3,300,000 | ||
Unsecured revolving credit facility | 224,213,000 | $ 676,715,000 | ||
Unsecured senior notes | ||||
Summary of Derivative Instruments | ||||
Principal Amount | $ 2,500,000,000 | |||
Unsecured senior notes | 2.0% Senior Notes | ||||
Summary of Derivative Instruments | ||||
Principal Amount | € | € 500,000,000 | |||
Coupon Rate | 2.00% | |||
Unsecured senior notes | 2.25% Senior Notes | ||||
Summary of Derivative Instruments | ||||
Principal Amount | € | € 500,000,000 | |||
Coupon Rate | 2.25% | 2.25% | ||
Net Investment Hedge | EUR | Revolving Credit Facility | ||||
Summary of Derivative Instruments | ||||
Unsecured revolving credit facility | € | € 236,300,000 | |||
Individual Counterparty | ||||
Summary of Derivative Instruments | ||||
Total credit exposure on derivatives | $ 13,500,000 | |||
Interest expense | ||||
Summary of Derivative Instruments | ||||
Estimated amount reclassified from OCI to income, derivatives | 700,000 | |||
Other Income | ||||
Summary of Derivative Instruments | ||||
Estimated amount reclassified from OCI to income, derivatives | $ 7,500,000 |
Risk Management and Use of De63
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 25,289 | $ 58,418 |
Liability derivatives, fair value | (6,294) | (2,996) |
Designated as Hedging Instrument | Foreign currency contracts | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 15,636 | 37,040 |
Designated as Hedging Instrument | Foreign currency collars | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 5,837 | 17,382 |
Designated as Hedging Instrument | Foreign currency collars | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (4,472) | 0 |
Designated as Hedging Instrument | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 227 | 190 |
Designated as Hedging Instrument | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (1,822) | (2,996) |
Designated as Hedging Instrument | Interest rate cap | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 24 | 45 |
Not Designated as Hedging Instrument | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 14 | 9 |
Not Designated as Hedging Instrument | Stock warrants | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 3,551 | $ 3,752 |
Risk Management and Use of De64
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | $ (11,088) | $ (5,329) | $ (37,018) | $ (9,126) |
Derivatives in Cash Flow Hedging Relationships | Equity method investments | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (400) | 100 | (900) | (200) |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (5,398) | (439) | (16,002) | 3,618 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency contracts | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (4,752) | (3,622) | (16,422) | (7,830) |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | 250 | 961 | 779 | (1,536) |
Derivatives in Cash Flow Hedging Relationships | Interest rate caps | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | (17) | (29) | (26) | (21) |
Derivatives in Net Investment Hedging Relationships | Foreign currency contracts | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (Effective Portion) | $ (1,171) | $ (2,200) | $ (5,347) | $ (3,357) |
Risk Management and Use of De65
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Reclassified From OCI (Details) - Derivatives in Cash Flow Hedging Relationships - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | $ 1,903 | $ 1,915 | $ 7,466 | $ 4,844 |
Foreign currency contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | 1,454 | 1,773 | 5,336 | 5,163 |
Foreign currency collars | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | 735 | 654 | 3,154 | 1,259 |
Interest rate swaps and caps | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) (Effective Portion) | $ (286) | $ (512) | $ (1,024) | $ (1,578) |
Risk Management and Use of De66
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 18 | $ 898 | $ (558) | $ 3,573 |
Not Designated as Hedging Instrument | Foreign currency collars | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | (225) | 78 | (718) | 257 |
Not Designated as Hedging Instrument | Stock warrants | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 134 | 335 | (201) | 134 |
Not Designated as Hedging Instrument | Foreign currency contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | (19) | 0 | (19) | 0 |
Not Designated as Hedging Instrument | Interest rate swaps | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 2 | 401 | 11 | 2,656 |
Cash Flow Hedging | Foreign currency collars | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | (13) | (26) | (11) | 12 |
Cash Flow Hedging | Foreign currency contracts | Other income and (expenses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | (14) | (55) | (75) | 86 |
Cash Flow Hedging | Interest rate swaps | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 153 | $ 165 | $ 455 | $ 428 |
Risk Management and Use of De67
Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) € in Thousands, $ in Thousands | Sep. 30, 2017USD ($)instrument | Sep. 30, 2017EUR (€)instrument |
Derivative Disclosure | ||
Fair value | $ (1,557) | |
Not Designated as Hedging Instrument | Interest rate swap | USD | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 1 | 1 |
Notional Amount | $ 2,890 | |
Fair value | $ 14 | |
Cash Flow Hedging | Interest rate swap | USD | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 11 | 11 |
Notional Amount | $ 104,966 | |
Fair value | $ (1,455) | |
Cash Flow Hedging | Interest rate swap | EUR | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 1 | 1 |
Notional Amount | € | € 5,813 | |
Fair value | $ (140) | |
Cash Flow Hedging | Interest rate caps | EUR | ||
Derivative Disclosure | ||
Derivative number of instruments | instrument | 1 | 1 |
Notional Amount | € | € 30,517 | |
Fair value | $ 24 |
Risk Management and Use of De68
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, £ in Thousands, AUD in Thousands, $ in Thousands | Sep. 30, 2017USD ($)instrument | Sep. 30, 2017GBP (£)instrument | Sep. 30, 2017EUR (€)instrument | Sep. 30, 2017AUDinstrument |
Derivative Disclosure | ||||
Fair value, foreign currency derivatives | $ 17,001 | |||
Cash Flow Hedging | Forward contracts | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 25 | 25 | 25 | 25 |
Notional Amount | € | € 77,208 | |||
Fair value, foreign currency derivatives | $ 12,553 | |||
Cash Flow Hedging | Forward contracts | GBP | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 5 | 5 | 5 | 5 |
Notional Amount | £ | £ 2,680 | |||
Fair value, foreign currency derivatives | $ 603 | |||
Cash Flow Hedging | Forward contracts | AUD | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 9 | 9 | 9 | 9 |
Notional Amount | AUD | AUD 11,411 | |||
Fair value, foreign currency derivatives | $ 404 | |||
Cash Flow Hedging | Foreign currency collars | EUR | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 24 | 24 | 24 | 24 |
Notional Amount | € | € 87,150 | |||
Fair value, foreign currency derivatives | $ (3,951) | |||
Cash Flow Hedging | Foreign currency collars | GBP | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 24 | 24 | 24 | 24 |
Notional Amount | £ | £ 40,750 | |||
Fair value, foreign currency derivatives | $ 5,316 | |||
Derivatives in Net Investment Hedging Relationships | Forward contracts | AUD | ||||
Derivative Disclosure | ||||
Derivative number of instruments | instrument | 3 | 3 | 3 | 3 |
Notional Amount | AUD | AUD 74,463 | |||
Fair value, foreign currency derivatives | $ 2,076 |
Debt - Narratives (Details)
Debt - Narratives (Details) | Jan. 19, 2017EUR (€) | Jan. 31, 2017USD ($)loan | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 08, 2017USD ($) | Jun. 08, 2017EUR (€) | Feb. 22, 2017USD ($) | Feb. 22, 2017EUR (€) | Dec. 31, 2016USD ($) |
Revolving Line Of Credit | |||||||||||
Line of credit, maximum borrowing amount | $ 2,350,000,000 | $ 2,350,000,000 | |||||||||
Unsecured revolving credit facility | 224,213,000 | 224,213,000 | $ 676,715,000 | ||||||||
Debt issuance costs | 16,210,000 | $ 16,210,000 | |||||||||
Non Recourse Mortgage | |||||||||||
Debt instrument maturity date, range start | Dec. 1, 2017 | ||||||||||
Debt instrument maturity date, range end | Jun. 1, 2027 | ||||||||||
Repayments of non recourse mortgage loan | $ 303,538,000 | $ 113,420,000 | |||||||||
Prepayments of mortgage principal | 157,370,000 | 193,030,000 | |||||||||
Increase in value of balance sheet item due to foreign currency translation | 28,979,000 | $ (11,824,000) | 71,686,000 | $ (41,999,000) | |||||||
Unamortized discount | 12,874,000 | 12,874,000 | |||||||||
Merged Entities | |||||||||||
Non Recourse Mortgage | |||||||||||
Unamortized discount | 1,400,000 | $ 1,400,000 | |||||||||
Fixed interest rate | Minimum | |||||||||||
Non Recourse Mortgage | |||||||||||
Mortgage loan on real estate, minimum interest rate | 2.00% | ||||||||||
Fixed interest rate | Maximum | |||||||||||
Non Recourse Mortgage | |||||||||||
Mortgage loan on real estate, minimum interest rate | 7.80% | ||||||||||
Variable interest rate | Minimum | |||||||||||
Non Recourse Mortgage | |||||||||||
Mortgage loan on real estate, minimum interest rate | 0.90% | ||||||||||
Variable interest rate | Maximum | |||||||||||
Non Recourse Mortgage | |||||||||||
Mortgage loan on real estate, minimum interest rate | 6.90% | ||||||||||
Revolving Credit Facility | |||||||||||
Revolving Line Of Credit | |||||||||||
Line of credit, maximum borrowing amount | $ 1,850,000,000 | 1,500,000,000 | |||||||||
Line of credit, amount available in foreign currency | 1,000,000,000 | $ 1,000,000,000 | 750,000,000 | ||||||||
Amount available for swing line loan | 75,000,000 | 75,000,000 | 50,000,000 | ||||||||
Amount available for letters of credit | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||
Line of credit facility, available | 1,300,000,000 | 1,300,000,000 | |||||||||
Letters of credit outstanding, amount | 100,000 | $ 100,000 | |||||||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | ||||||||||
Revolving Credit Facility | Other assets, net | |||||||||||
Revolving Line Of Credit | |||||||||||
Debt issuance costs | 8,500,000 | ||||||||||
Term Loan | |||||||||||
Revolving Line Of Credit | |||||||||||
Line of credit, maximum borrowing amount | € 236,300,000 | 250,000,000 | |||||||||
Unsecured revolving credit facility | 250,000,000 | € 236,300,000 | |||||||||
Debt issuance costs | 200,000 | $ 200,000 | 100,000 | ||||||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | ||||||||||
Non Recourse Mortgage | |||||||||||
Unamortized discount | 1,300,000 | $ 1,300,000 | |||||||||
Delayed Draw term loan | |||||||||||
Revolving Line Of Credit | |||||||||||
Line of credit, maximum borrowing amount | 100,000,000 | ||||||||||
Unsecured revolving credit facility | $ 100,000,000 | € 88,700,000 | |||||||||
Senior Unsecured Notes | |||||||||||
Maturity Date | Feb. 22, 2022 | ||||||||||
Amended Revolver | |||||||||||
Revolving Line Of Credit | |||||||||||
Line of credit, maximum borrowing amount | $ 1,500,000,000 | ||||||||||
Senior Unsecured Notes | |||||||||||
Revolving Line Of Credit | |||||||||||
Debt issuance costs | 15,000,000 | $ 15,000,000 | 12,100,000 | ||||||||
Senior Unsecured Notes | |||||||||||
Principal Amount | 2,500,000,000 | 2,500,000,000 | |||||||||
Non Recourse Mortgage | |||||||||||
Unamortized discount | 10,200,000 | $ 10,200,000 | $ 7,800,000 | ||||||||
Senior Unsecured Notes | Government Bond Yield | Minimum | |||||||||||
Senior Unsecured Notes | |||||||||||
Variable interest rate (percentage) | 0.30% | ||||||||||
Senior Unsecured Notes | Government Bond Yield | Maximum | |||||||||||
Senior Unsecured Notes | |||||||||||
Variable interest rate (percentage) | 0.35% | ||||||||||
Senior Unsecured Notes | 2.25% Senior Notes | |||||||||||
Revolving Line Of Credit | |||||||||||
Debt issuance costs | $ 4,000,000 | $ 4,000,000 | |||||||||
Senior Unsecured Notes | |||||||||||
Principal Amount | € | € 500,000,000 | ||||||||||
Coupon Rate | 2.25% | 2.25% | |||||||||
Issue Date | Jan. 19, 2017 | ||||||||||
Price of Par Value | 99.448% | ||||||||||
Debt Instrument, Term | 7 years 6 months | ||||||||||
Maturity Date | Jul. 19, 2024 | ||||||||||
Secured Debt | International Properties | |||||||||||
Non Recourse Mortgage | |||||||||||
Loans repaid, count | loan | 2 | ||||||||||
Repayments of non recourse mortgage loan | $ 243,800,000 | ||||||||||
Secured Debt | International Properties | Noncontrolling interests | |||||||||||
Non Recourse Mortgage | |||||||||||
Repayments of non recourse mortgage loan | $ 90,300,000 | $ 19,300,000 | |||||||||
Weighted average interest rate | 5.40% | ||||||||||
Non-Recourse Debt | |||||||||||
Non Recourse Mortgage | |||||||||||
Prepayments of mortgage principal | 157,400,000 | ||||||||||
Gain on the extinguishment of debt | 800,000 | ||||||||||
Increase in value of balance sheet item due to foreign currency translation | $ 204,700,000 | ||||||||||
Non-Recourse Debt | Properties disposed of by sale | |||||||||||
Non Recourse Mortgage | |||||||||||
Weighted average interest rate | 5.50% | 5.50% | |||||||||
Prepayments of mortgage principal | $ 38,400,000 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Credit Facility (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Capital Lease Obligations | ||
Debt and Capital Lease Obligations | $ 607,900 | $ 926,700 |
Deferred financing costs | $ 16,210 | |
Standard & Poor's, BBB Rating | ||
Capital Lease Obligations | ||
Debt instrument, credit rating | BBB | |
Moody's, Baa2 Rating | ||
Capital Lease Obligations | ||
Debt instrument, credit rating | Baa2 | |
Term Loan | ||
Capital Lease Obligations | ||
Debt and Capital Lease Obligations | $ 383,700 | 250,000 |
Deferred financing costs | 200 | 100 |
Unamortized discount | $ 1,300 | |
Term Loan | EUR | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2022 | |
Debt and Capital Lease Obligations | $ 279,000 | 0 |
Term Loan | EUR | EURIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.10% | |
Term Loan | USD | ||
Capital Lease Obligations | ||
Debt and Capital Lease Obligations | $ 0 | 250,000 |
Delayed Draw term loan | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2022 | |
Debt and Capital Lease Obligations | $ 104,700 | 0 |
Delayed Draw term loan | EURIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.10% | |
Unsecured revolving credit facility | ||
Capital Lease Obligations | ||
Debt and Capital Lease Obligations | $ 224,200 | 676,700 |
Unsecured revolving credit facility | EUR | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2021 | |
Debt and Capital Lease Obligations | $ 111,200 | 286,700 |
Unsecured revolving credit facility | EUR | EURIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.00% | |
Unsecured revolving credit facility | USD | ||
Capital Lease Obligations | ||
Maturity Date | Feb. 22, 2021 | |
Debt and Capital Lease Obligations | $ 113,000 | $ 390,000 |
Unsecured revolving credit facility | USD | LIBOR | ||
Capital Lease Obligations | ||
Variable interest rate (percentage) | 1.00% |
Debt - Summary of Unsecured Sen
Debt - Summary of Unsecured Senior Notes (Details) | Jan. 19, 2017EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2016USD ($) |
Senior Unsecured Notes | ||||
Unsecured senior notes, net | $ 2,455,383,000 | $ 1,807,200,000 | ||
Deferred financing costs | 16,210,000 | |||
Unamortized discount, net | 12,874,000 | |||
Senior Unsecured Notes | ||||
Senior Unsecured Notes | ||||
Principal Amount | 2,500,000,000 | |||
Unsecured senior notes, net | 2,480,600,000 | 1,827,100,000 | ||
Deferred financing costs | 15,000,000 | 12,100,000 | ||
Unamortized discount, net | $ 10,200,000 | 7,800,000 | ||
Senior Unsecured Notes | 2.0% Senior Notes | ||||
Senior Unsecured Notes | ||||
Issue Date | Jan. 21, 2015 | |||
Principal Amount | € | € 500,000,000 | |||
Price of Par Value | 99.22% | 99.22% | ||
Discount | $ 4,600,000 | |||
Effective Interest Rate | 2.107% | 2.107% | ||
Coupon Rate | 2.00% | |||
Maturity Date | Jan. 20, 2023 | |||
Unsecured senior notes, net | $ 590,300,000 | 527,100,000 | ||
Senior Unsecured Notes | 4.6% Senior Notes | ||||
Senior Unsecured Notes | ||||
Issue Date | Mar. 14, 2014 | |||
Principal Amount | $ 500,000,000 | |||
Price of Par Value | 99.639% | 99.639% | ||
Discount | $ 1,800,000 | |||
Effective Interest Rate | 4.645% | 4.645% | ||
Coupon Rate | 4.60% | |||
Maturity Date | Apr. 1, 2024 | |||
Unsecured senior notes, net | $ 500,000,000 | 500,000,000 | ||
Senior Unsecured Notes | 2.25% Senior Notes | ||||
Senior Unsecured Notes | ||||
Issue Date | Jan. 19, 2017 | |||
Principal Amount | € | € 500,000,000 | |||
Price of Par Value | 99.448% | |||
Discount | $ 2,900,000 | |||
Effective Interest Rate | 2.332% | 2.332% | ||
Coupon Rate | 2.25% | 2.25% | ||
Maturity Date | Jul. 19, 2024 | |||
Unsecured senior notes, net | $ 590,300,000 | 0 | ||
Deferred financing costs | $ 4,000,000 | |||
Senior Unsecured Notes | 4.0% Senior Notes | ||||
Senior Unsecured Notes | ||||
Issue Date | Jan. 26, 2015 | |||
Principal Amount | $ 450,000,000 | |||
Price of Par Value | 99.372% | 99.372% | ||
Discount | $ 2,800,000 | |||
Effective Interest Rate | 4.077% | 4.077% | ||
Coupon Rate | 4.00% | |||
Maturity Date | Feb. 1, 2025 | |||
Unsecured senior notes, net | $ 450,000,000 | 450,000,000 | ||
Senior Unsecured Notes | 4.25% Senior Notes | ||||
Senior Unsecured Notes | ||||
Issue Date | Sep. 12, 2016 | |||
Principal Amount | $ 350,000,000 | |||
Price of Par Value | 99.682% | 99.682% | ||
Discount | $ 1,100,000 | |||
Effective Interest Rate | 4.29% | 4.29% | ||
Coupon Rate | 4.25% | |||
Maturity Date | Oct. 1, 2026 | |||
Unsecured senior notes, net | $ 350,000,000 | $ 350,000,000 |
Debt - Scheduled Debt Principal
Debt - Scheduled Debt Principal Payments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Long-term Debt, by Maturity | |
2017 (remainder) | $ 40,784 |
2,018 | 278,163 |
2,019 | 99,384 |
2,020 | 221,547 |
2,021 | 384,004 |
Thereafter through 2027 | 3,320,040 |
Long term debt before unamortized discount | 4,343,922 |
Deferred financing costs | (16,210) |
Unamortized discount | (12,874) |
Total scheduled debt principal payments | $ 4,314,838 |
Restructuring and Other Compe73
Restructuring and Other Compensation - Narratives (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve | ||
Severance costs | $ 8.2 | |
Other restructuring costs | 0.9 | |
Accrued severance liability | $ 4.8 | |
Employee Severance | ||
Restructuring Cost and Reserve | ||
Severance costs | $ 8.2 | |
Other restructuring costs | 0.5 | |
Employee Severance | Stock compensation plan | ||
Restructuring Cost and Reserve | ||
Severance costs | 3.2 | |
Chief Executive Officer | ||
Restructuring Cost and Reserve | ||
Severance costs | 5.1 | |
Chief Financial Officer | Employee Severance | RSU and PSU | ||
Restructuring Cost and Reserve | ||
Severance costs | $ 2.4 |
Stock-Based Compensation and 74
Stock-Based Compensation and Equity - Narratives (Details) | May 26, 2017USD ($) | May 24, 2017EUR (€) | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Mar. 01, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jun. 03, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Stock-based compensation expense | $ 14,649,000 | $ 18,170,000 | |||||||
Severance costs | $ 8,200,000 | ||||||||
Fair value assumptions expected dividend rate | 0.00% | ||||||||
Fair value of vested stock | $ 20,500,000 | ||||||||
Deferred compensation arrangement with individual, common stock reserved for future issuance (shares) | shares | 1,135,563 | 1,135,563 | 1,217,274 | ||||||
Deferred compensation obligation | $ 46,711,000 | $ 46,711,000 | $ 50,222,000 | ||||||
Unrecognized stock based compensation expense | $ 21,400,000 | $ 21,400,000 | |||||||
Weighted-average remaining term | 1 year 10 months 25 days | ||||||||
Options exercised in period (shares) | shares | 2,475 | 134,709 | |||||||
Options exercised during the period, aggregate intrinsic value | $ 100,000 | $ 4,000,000 | |||||||
Stock options outstanding (shares) | shares | 10,324 | 10,324 | |||||||
Stock options exercisable (shares) | shares | 10,324 | 10,324 | |||||||
Shares issued under “at-the-market” offering, net | $ 22,857,000 | 83,786,000 | |||||||
Gain on sale of real estate, net of tax | $ 19,257,000 | $ 49,126,000 | 22,732,000 | 68,070,000 | |||||
Redeemable Noncontrolling Interest | |||||||||
Distributions to noncontrolling interests | $ 16,910,000 | $ 13,418,000 | |||||||
Distributions Declared | |||||||||
Distributions declared (usd per share) | $ / shares | $ 1.005 | $ 0.985 | $ 3 | $ 2.9392 | |||||
Dividend payable date | Oct. 16, 2017 | ||||||||
Aggregate distributions declared | $ 107,400,000 | $ 320,300,000 | |||||||
International Properties | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Increase in ownership interest | 25.00% | ||||||||
Ownership interest | 100.00% | ||||||||
Purchase of the remaining interest in a less-than-wholly-owned investment that we already consolidate | € | € 2 | ||||||||
Gain on sale of real estate, net of tax | $ 100,000 | ||||||||
Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Options exercised in period (shares) | shares | 38,560 | 32,873 | |||||||
Shares issued under “at-the-market” offering, net, shares | shares | 345,253 | 1,249,836 | |||||||
Shares issued under “at-the-market” offering, net | $ 1,000 | $ 2,000 | |||||||
Redeemable Noncontrolling Interest | |||||||||
Shares issued to a third party in connection with the redemption of a redeemable noncontrolling interest, shares | shares | 217,011 | ||||||||
Redeemable Noncontrolling Interest | |||||||||
Redeemable Noncontrolling Interest | |||||||||
Distributions to noncontrolling interests | $ 0 | $ 13,418,000 | |||||||
Officers | WPCI | |||||||||
Redeemable Noncontrolling Interest | |||||||||
Minority interest ownership interest | 7.70% | 7.70% | |||||||
ATM | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Common stock maximum offering value | $ 376,600,000 | $ 376,600,000 | $ 400,000,000 | $ 400,000,000 | |||||
ATM | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Shares issued under “at-the-market” offering, net, shares | shares | 15,500 | 968,535 | 345,253 | 1,249,836 | |||||
Weighted average price of shares issued under “at-the-market” offering, (usd per share) | $ / shares | $ 67.05 | $ 68.54 | $ 67.78 | $ 68.52 | |||||
Shares issued under “at-the-market” offering, net | $ 900,000 | $ 65,200,000 | $ 22,800,000 | $ 84,100,000 | |||||
Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Risk free interest rate | 1.50% | ||||||||
Fair value assumptions expected volatility rate | 17.10% | ||||||||
Long Term Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Deferred compensation obligation | $ 46,700,000 | $ 46,700,000 | $ 50,200,000 | ||||||
Employee Severance | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Severance costs | 8,200,000 | ||||||||
Employee Severance | Stock compensation plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Shares authorized for share based compensation | shares | 4,000,000 | 4,000,000 | |||||||
Severance costs | $ 3,200,000 | ||||||||
Employee Severance | Stock compensation plan | 2009 Share Incentive Plan and the 2009 Non-Employee Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Shares authorized for share based compensation | shares | 279,728 | 279,728 |
Stock-Based Compensation and 75
Stock-Based Compensation and Equity - Restricted and Conditional Awards (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Restricted Stock And RSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested, beginning balance - shares | shares | 356,865 |
Granted - shares | shares | 193,467 |
Vested - shares | shares | (169,560) |
Forfeited - shares | shares | (41,957) |
Adjustments - shares | shares | 0 |
Nonvested, ending balance - shares | shares | 338,815 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 61.63 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 62.19 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 62.77 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 61.09 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 61.45 |
Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |
Nonvested, beginning balance - shares | shares | 310,018 |
Granted - shares | shares | 107,934 |
Vested - shares | shares | (132,412) |
Forfeited - shares | shares | (45,258) |
Adjustments - shares | shares | 28,271 |
Nonvested, ending balance - shares | shares | 268,553 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 73.80 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 75.39 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 74.21 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 76.91 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 63.24 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 75.18 |
Stock-Based Compensation and 76
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Reconciliation | ||||
Net Income Attributable to W. P. Carey | $ 80,278 | $ 110,943 | $ 202,080 | $ 220,043 |
Net income attributable to nonvested participating RSUs and RSAs | (239) | (386) | (600) | (766) |
Net income — basic and diluted | $ 80,039 | $ 110,557 | $ 201,480 | $ 219,277 |
Weighted-average shares outstanding – basic (shares) | 108,019,292 | 107,221,668 | 107,751,672 | 106,493,145 |
Effect of dilutive securities - shares | 124,402 | 246,361 | 195,818 | 360,029 |
Weighted-average shares outstanding – diluted (shares) | 108,143,694 | 107,468,029 | 107,947,490 | 106,853,174 |
Anti-dilutive shares, (shares) | 0 | 0 | 0 | 0 |
Stock-Based Compensation and 77
Stock-Based Compensation and Equity - Redeemable Noncontrolling Interest Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | ||
Balance - beginning of period | $ 965 | |
Distributions | (16,910) | $ (13,418) |
Redemption value adjustment | 561 | |
Balance - end of period | 965 | |
Redeemable Noncontrolling Interest | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | ||
Balance - beginning of period | 965 | 14,944 |
Distributions | 0 | (13,418) |
Redemption value adjustment | 0 | (561) |
Balance - end of period | $ 965 | $ 965 |
Stock-Based Compensation and 78
Stock-Based Compensation and Equity - Reclassifications Out of Accumulated Other Comprehensive Loss Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation Of Accumulated Comprehensive Income | ||||
Balance - beginning of period | $ 3,425,140 | $ 3,561,428 | ||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | $ 19,257 | $ 49,126 | 22,732 | 68,070 |
Interest expense | 41,182 | 44,349 | 125,374 | 139,496 |
Net current period other comprehensive loss | 18,775 | (14,924) | 38,852 | (48,001) |
Balance - end of period | 3,449,949 | 3,512,081 | 3,449,949 | 3,512,081 |
Accumulated Other Comprehensive Income (Loss) | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Balance - beginning of period | (243,648) | (206,201) | (254,485) | (172,291) |
Other comprehensive income before reclassifications | 17,116 | (13,009) | 42,756 | (43,157) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | 1,659 | (1,915) | (3,904) | (4,844) |
Net current period other comprehensive loss | 18,775 | (14,924) | 38,852 | (48,001) |
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (13,948) | (1,034) | ||
Balance - end of period | (229,581) | (221,326) | (229,581) | (221,326) |
Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 3,562 | 3,562 | ||
Interest expense | 286 | 512 | 1,024 | 1,578 |
Other income and (expenses) | (2,189) | (2,427) | (8,490) | (6,422) |
Gains and Losses on Derivative Instruments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Balance - beginning of period | 24,636 | 34,744 | 46,935 | 37,650 |
Other comprehensive income before reclassifications | (8,367) | (1,178) | (25,108) | (1,155) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | (1,903) | (1,915) | (7,466) | (4,844) |
Net current period other comprehensive loss | (10,270) | (3,093) | (32,574) | (5,999) |
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 13 | 17 | ||
Balance - end of period | 14,374 | 31,668 | 14,374 | 31,668 |
Gains and Losses on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 0 | 0 | ||
Interest expense | 286 | 512 | 1,024 | 1,578 |
Other income and (expenses) | (2,189) | (2,427) | (8,490) | (6,422) |
Foreign Currency Translation Adjustments | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Balance - beginning of period | (267,868) | (240,985) | (301,330) | (209,977) |
Other comprehensive income before reclassifications | 25,417 | (11,824) | 68,124 | (41,999) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | 3,562 | 0 | 3,562 | 0 |
Net current period other comprehensive loss | 28,979 | (11,824) | 71,686 | (41,999) |
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (13,961) | (1,051) | ||
Balance - end of period | (243,605) | (253,027) | (243,605) | (253,027) |
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 3,562 | 3,562 | ||
Interest expense | 0 | 0 | 0 | 0 |
Other income and (expenses) | 0 | 0 | 0 | 0 |
Gains and Losses on Marketable Securities | ||||
Reconciliation Of Accumulated Comprehensive Income | ||||
Balance - beginning of period | (416) | 40 | (90) | 36 |
Other comprehensive income before reclassifications | 66 | (7) | (260) | (3) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amount reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net current period other comprehensive loss | 66 | (7) | (260) | (3) |
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 0 | 0 | ||
Balance - end of period | (350) | 33 | (350) | 33 |
Gains and Losses on Marketable Securities | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Gain on sale of real estate, net of tax | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 |
Other income and (expenses) | 0 | 0 | $ 0 | $ 0 |
Noncontrolling Interest | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (4,708) | (201) | ||
Gains and Losses on Derivative Instruments | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | 8 | 17 | ||
Foreign Currency Translation Adjustments | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | (4,716) | (218) | ||
Gains and Losses on Marketable Securities | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Net current period other comprehensive (gain) loss attributable to noncontrolling interests | $ 0 | $ 0 |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Current income tax expense | $ 3 | $ 4.8 | $ 11.1 | $ 14.7 |
Deferred income tax benefit | $ 1.2 | $ 1.6 | $ 8.2 | 19.2 |
Income taxes, net | ||||
Operating Loss Carryforwards [Line Items] | ||||
Prior period adjustments | $ 3 |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | Feb. 29, 2016USD ($) | Jan. 31, 2017USD ($) | Apr. 30, 2016USD ($) | Feb. 28, 2016USD ($) | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($)property | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($)property | Sep. 30, 2016USD ($)property | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)property |
Discontinued Operation Additional Disclosures | |||||||||||
Gain on sale of real estate, net of tax | $ 19,257 | $ 49,126 | $ 22,732 | $ 68,070 | |||||||
Foreign currency translation adjustments | 3,600 | ||||||||||
Disposal group, non current asset | $ 31,300 | ||||||||||
Disposal group, non current liability | (28,100) | ||||||||||
Disposal group, restricted cash | 3,800 | ||||||||||
Loss on sale of real estate, net of tax | $ 100 | ||||||||||
Secured debt | 1,253,051 | 1,253,051 | $ 1,706,921 | ||||||||
Additional lease term | 15 years | ||||||||||
Rental payment received | $ 25,000 | ||||||||||
Lease termination fee | $ 22,200 | ||||||||||
Lease termination income | 32,200 | $ 15,000 | |||||||||
Deposit for real estate to be purchased | $ 12,700 | ||||||||||
Owned Real Estate | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Gain on sale of real estate, net of tax | $ 19,257 | $ 49,126 | $ 22,732 | 68,070 | |||||||
Number of real estate properties | property | 890 | 890 | |||||||||
Reclassification | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Gain on sale of real estate, net of tax | $ (3,600) | ||||||||||
Number of real estate properties | property | 6 | 6 | |||||||||
Properties disposed of by sale | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Properties sold | property | 5 | 3 | 11 | 10 | |||||||
Proceeds from the sale of properties | $ 44,400 | $ 58,700 | $ 192,000 | $ 102,500 | $ 392,600 | ||||||
Gain on sale of real estate, net of tax | $ (10,700) | $ 19,300 | 37,400 | $ 22,700 | 39,900 | ||||||
Properties disposed of by sale | Owned Real Estate | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Allocation of goodwill to the cost basis of properties sold or classified as held-for-sale | $ 18,000 | 32,900 | |||||||||
Properties disposed of by sale | International Properties | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Gain on sale of real estate, net of tax | $ 16,400 | ||||||||||
Rental properties | 39,800 | ||||||||||
Mortgage loan | 60,900 | ||||||||||
Properties disposed of by sale | Domestic Property | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Rental properties | 13,700 | ||||||||||
Secured debt | 24,300 | ||||||||||
Restricted cash | 2,600 | ||||||||||
Gain on foreclosure of property | $ 11,600 | ||||||||||
Properties disposed of by sale | Noncontrolling interests | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Gain on sale of real estate, net of tax | $ 900 | ||||||||||
Held-for-sale | |||||||||||
Discontinued Operation Additional Disclosures | |||||||||||
Properties sold | property | 9 | ||||||||||
Number of real estate properties | property | 1 | 1 | 1 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Reporting - Income From
Segment Reporting - Income From Owned Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Owned Real Estate: | ||||
Lease revenues | $ 161,511 | $ 163,786 | $ 475,547 | $ 506,358 |
Operating property revenues | 8,449 | 8,524 | 23,652 | 23,696 |
Reimbursable tenant costs | 5,397 | 6,537 | 15,940 | 19,237 |
Lease termination income and other | 1,227 | 1,224 | 4,234 | 34,603 |
Total revenues | 210,754 | 225,247 | 651,341 | 712,753 |
Operating Expenses | ||||
Depreciation and amortization | 64,040 | 62,802 | 189,319 | 213,835 |
General and administrative | 17,236 | 15,733 | 53,189 | 58,122 |
Property expenses, excluding reimbursable tenant costs | 10,556 | 10,193 | 31,196 | 38,475 |
Reimbursable tenant costs | 11,608 | 21,077 | 61,330 | 65,609 |
Stock-based compensation expense | 4,635 | 4,356 | 14,649 | 14,964 |
Other expenses | 65 | 0 | 1,138 | 5,359 |
Impairment charges | 0 | 14,441 | 0 | 49,870 |
Restructuring and other compensation | 1,356 | 0 | 9,074 | 11,925 |
Total operating expenses | 115,164 | 136,472 | 378,037 | 477,169 |
Other Income and Expenses | ||||
Interest expense | (41,182) | (44,349) | (125,374) | (139,496) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 16,318 | 16,803 | 47,820 | 48,243 |
Other income and (expenses) | (4,569) | 5,101 | (4,969) | 9,398 |
Total other income and expenses | (29,433) | (22,445) | (82,523) | (81,855) |
(Provision for) benefit from income taxes | (1,760) | (3,154) | (2,903) | 4,538 |
Income before gain on sale of real estate | 64,397 | 63,176 | 187,878 | 158,267 |
Gain on sale of real estate, net of tax | 19,257 | 49,126 | 22,732 | 68,070 |
Net Income | 83,654 | 112,302 | 210,610 | 226,337 |
Net income attributable to noncontrolling interests | (3,376) | (1,359) | (8,530) | (6,294) |
Net Income Attributable to W. P. Carey | 80,278 | 110,943 | 202,080 | 220,043 |
Owned Real Estate | ||||
Owned Real Estate: | ||||
Lease revenues | 161,511 | 163,786 | 475,547 | 506,358 |
Operating property revenues | 8,449 | 8,524 | 23,652 | 23,696 |
Reimbursable tenant costs | 5,397 | 6,537 | 15,940 | 19,237 |
Lease termination income and other | 1,227 | 1,224 | 4,234 | 34,603 |
Total revenues | 176,584 | 180,071 | 519,373 | 583,894 |
Operating Expenses | ||||
Depreciation and amortization | 62,970 | 61,740 | 186,481 | 210,557 |
General and administrative | 11,234 | 7,453 | 27,311 | 25,653 |
Property expenses, excluding reimbursable tenant costs | 10,556 | 10,193 | 31,196 | 38,475 |
Reimbursable tenant costs | 5,397 | 6,537 | 15,940 | 19,237 |
Stock-based compensation expense | 1,880 | 1,572 | 4,733 | 4,316 |
Other expenses | 65 | 0 | 1,138 | 2,975 |
Impairment charges | 0 | 14,441 | 0 | 49,870 |
Restructuring and other compensation | 0 | 0 | 0 | 4,413 |
Total operating expenses | 92,102 | 101,936 | 266,799 | 355,496 |
Other Income and Expenses | ||||
Interest expense | (41,182) | (44,349) | (125,374) | (139,496) |
Equity in earnings of equity method investments in the Managed Programs and real estate | 3,740 | 3,230 | 9,533 | 9,585 |
Other income and (expenses) | (4,918) | 3,244 | (6,249) | 7,681 |
Total other income and expenses | (42,360) | (37,875) | (122,090) | (122,230) |
Income before income taxes and gain on sale of real estate | 42,122 | 40,260 | 130,484 | 106,168 |
(Provision for) benefit from income taxes | (1,511) | (530) | (6,696) | 6,792 |
Income before gain on sale of real estate | 40,611 | 39,730 | 123,788 | 112,960 |
Gain on sale of real estate, net of tax | 19,257 | 49,126 | 22,732 | 68,070 |
Net Income | 59,868 | 88,856 | 146,520 | 181,030 |
Net income attributable to noncontrolling interests | (3,376) | (1,359) | (8,530) | (6,294) |
Net Income Attributable to W. P. Carey | $ 56,492 | $ 87,497 | $ 137,990 | $ 174,736 |
Segment Reporting - Income Fr83
Segment Reporting - Income From Investment Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investment Management: | ||||
Asset management revenue | $ 17,938 | $ 15,978 | $ 53,271 | $ 45,596 |
Structuring revenue | 9,817 | 12,301 | 27,981 | 30,990 |
Reimbursable costs from affiliates | 5,397 | 6,537 | 15,940 | 19,237 |
Dealer manager fees | 105 | 1,835 | 4,430 | 5,379 |
Other advisory revenue | 99 | 522 | 896 | 522 |
Total revenues | 210,754 | 225,247 | 651,341 | 712,753 |
Operating Expenses | ||||
General and administrative | 17,236 | 15,733 | 53,189 | 58,122 |
Reimbursable tenant and affiliate costs | 11,608 | 21,077 | 61,330 | 65,609 |
Subadvisor fees | 5,206 | 4,842 | 11,598 | 10,010 |
Stock-based compensation expense | 4,635 | 4,356 | 14,649 | 14,964 |
Restructuring and other compensation | 1,356 | 0 | 9,074 | 11,925 |
Depreciation and amortization | 64,040 | 62,802 | 189,319 | 213,835 |
Dealer manager fees and expenses | 462 | 3,028 | 6,544 | 9,000 |
Other expenses | 65 | 0 | 1,138 | 5,359 |
Total operating expenses | 115,164 | 136,472 | 378,037 | 477,169 |
Other Income and Expenses | ||||
Equity in earnings of equity method investments in the Managed Programs and real estate | 16,318 | 16,803 | 47,820 | 48,243 |
Other income and (expenses) | (4,569) | 5,101 | (4,969) | 9,398 |
Total other income and expenses | (29,433) | (22,445) | (82,523) | (81,855) |
(Provision for) benefit from income taxes | (1,760) | (3,154) | (2,903) | 4,538 |
Net Income Attributable to W. P. Carey | 80,278 | 110,943 | 202,080 | 220,043 |
Investment Management | ||||
Investment Management: | ||||
Asset management revenue | 17,938 | 15,978 | 53,271 | 45,596 |
Structuring revenue | 9,817 | 12,301 | 27,981 | 30,990 |
Reimbursable costs from affiliates | 6,211 | 14,540 | 45,390 | 46,372 |
Dealer manager fees | 105 | 1,835 | 4,430 | 5,379 |
Other advisory revenue | 99 | 522 | 896 | 522 |
Total revenues | 34,170 | 45,176 | 131,968 | 128,859 |
Operating Expenses | ||||
General and administrative | 6,002 | 8,280 | 25,878 | 32,469 |
Reimbursable tenant and affiliate costs | 6,211 | 14,540 | 45,390 | 46,372 |
Subadvisor fees | 5,206 | 4,842 | 11,598 | 10,010 |
Stock-based compensation expense | 2,755 | 2,784 | 9,916 | 10,648 |
Restructuring and other compensation | 1,356 | 0 | 9,074 | 7,512 |
Depreciation and amortization | 1,070 | 1,062 | 2,838 | 3,278 |
Dealer manager fees and expenses | 462 | 3,028 | 6,544 | 9,000 |
Other expenses | 0 | 0 | 0 | 2,384 |
Total operating expenses | 23,062 | 34,536 | 111,238 | 121,673 |
Other Income and Expenses | ||||
Equity in earnings of equity method investments in the Managed Programs and real estate | 12,578 | 13,573 | 38,287 | 38,658 |
Other income and (expenses) | 349 | 1,857 | 1,280 | 1,717 |
Total other income and expenses | 12,927 | 15,430 | 39,567 | 40,375 |
Income before income taxes and gain on sale of real estate | 24,035 | 26,070 | 60,297 | 47,561 |
(Provision for) benefit from income taxes | (249) | (2,624) | 3,793 | (2,254) |
Net Income Attributable to W. P. Carey | $ 23,786 | $ 23,446 | $ 64,090 | $ 45,307 |
Segment Reporting - Total Compa
Segment Reporting - Total Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information Profit Loss | ||||
Revenues | $ 210,754 | $ 225,247 | $ 651,341 | $ 712,753 |
Operating expenses | 115,164 | 136,472 | 378,037 | 477,169 |
Other income and (expenses) | (29,433) | (22,445) | (82,523) | (81,855) |
Gain on sale of real estate, net of tax | 19,257 | 49,126 | 22,732 | 68,070 |
(Provision for) benefit from income taxes | (1,760) | (3,154) | (2,903) | 4,538 |
Net income attributable to noncontrolling interests | (3,376) | (1,359) | (8,530) | (6,294) |
Income attributable to W. P. Carey | $ 80,278 | $ 110,943 | $ 202,080 | $ 220,043 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Total assets | $ 8,334,411 | $ 8,453,954 |
Owned Real Estate | ||
Assets | ||
Total assets | 7,975,925 | 8,104,974 |
Investment Management | ||
Assets | ||
Total assets | $ 358,486 | $ 348,980 |
Subsequent Events - Narratives
Subsequent Events - Narratives (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2017USD ($)loan | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Subsequent Event [Line Items] | ||||
Repayments of non recourse mortgage loan | $ 303,538 | $ 113,420 | ||
Loans receivable, related party | $ 131,296 | $ 237,500 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Loans repaid, count | loan | 3 | |||
Repayments of non recourse mortgage loan | $ 25,200 | |||
Subsequent Event | CWI | ||||
Subsequent Event [Line Items] | ||||
Proceeds from repayments of related party loan | 29,200 | |||
Subsequent Event | CWI | Working Capital Facility | ||||
Subsequent Event [Line Items] | ||||
Proceeds from repayments of related party loan | 15,000 | |||
Subsequent Event | CWI | Bridge Loan | ||||
Subsequent Event [Line Items] | ||||
Proceeds from repayments of related party loan | 14,200 | |||
Subsequent Event | CPA:18 - Global | ||||
Subsequent Event [Line Items] | ||||
Proceeds from repayments of related party loan | 19,000 | |||
Subsequent Event | CWI 2 | Working Capital Facility | ||||
Subsequent Event [Line Items] | ||||
Loans receivable, related party | $ 25,000 | |||
Subsequent Event | CWI 2 | Working Capital Facility | LIBOR | ||||
Subsequent Event [Line Items] | ||||
Variable rate | 1.00% |