Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-13779 | |
Entity Registrant Name | W. P. Carey Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 45-4549771 | |
Entity Address, Street Address | One Manhattan West, 395 9th Avenue, 58th Floor | |
Entity Address, City | New York, | |
Entity Address, State | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 212 | |
Local Phone Number | 492-1100 | |
Title of each class | Common Stock, $0.001 Par Value | |
Trading Symbol | WPC | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 192,908,916 | |
Entity Central Index Key | 0001025378 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Investments in real estate: | |||
Land, buildings and improvements | $ 12,026,671 | $ 11,875,407 | |
Net investments in direct financing leases and loans receivable | 786,462 | 813,577 | |
In-place lease intangible assets and other | 2,384,032 | 2,386,000 | |
Above-market rent intangible assets | 822,470 | 843,410 | |
Investments in real estate | 16,019,635 | 15,918,394 | |
Accumulated depreciation and amortization | (3,043,146) | (2,889,294) | |
Assets held for sale, net | 0 | 8,269 | |
Net investments in real estate | 12,976,489 | 13,037,369 | |
Equity method investments | 344,360 | 356,637 | |
Cash and cash equivalents | 103,590 | 165,427 | |
Due from affiliates | 18,937 | 1,826 | |
Other assets, net | 1,119,389 | 1,017,842 | |
Goodwill | 891,464 | 901,529 | |
Total assets | [1] | 15,454,229 | 15,480,630 |
Debt: | |||
Senior unsecured notes, net | 5,471,066 | 5,701,913 | |
Unsecured term loans, net | 548,287 | 310,583 | |
Unsecured revolving credit facility | 417,455 | 410,596 | |
Non-recourse mortgages, net | 328,820 | 368,524 | |
Debt, net | 6,765,628 | 6,791,616 | |
Accounts payable, accrued expenses and other liabilities | 529,719 | 572,846 | |
Below-market rent and other intangible liabilities, net | 174,766 | 183,286 | |
Deferred income taxes | 135,128 | 145,572 | |
Dividends payable | 207,526 | 203,859 | |
Total liabilities | [1] | 7,812,767 | 7,897,179 |
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; 192,891,792 and 190,013,751 shares, respectively, issued and outstanding | 193 | 190 | |
Additional paid-in capital | 10,201,614 | 9,977,686 | |
Distributions in excess of accumulated earnings | (2,352,839) | (2,224,231) | |
Deferred compensation obligation | 57,012 | 49,810 | |
Accumulated other comprehensive loss | (266,157) | (221,670) | |
Total stockholders’ equity | 7,639,823 | 7,581,785 | |
Noncontrolling interests | 1,639 | 1,666 | |
Total equity | 7,641,462 | 7,583,451 | |
Total liabilities and equity | $ 15,454,229 | $ 15,480,630 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
W. P. Carey stockholders’ equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (shares) | 192,891,792 | 190,013,751 |
Common stock, shares outstanding (shares) | 192,891,792 | 190,013,751 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Investment Management: | ||||
Revenues | $ 344,397 | $ 319,724 | $ 692,835 | $ 630,890 |
Operating Expenses | ||||
Depreciation and amortization | 115,080 | 114,348 | 230,473 | 224,670 |
General and administrative | 20,841 | 20,464 | 43,925 | 42,547 |
Reimbursable tenant costs | 16,704 | 15,092 | 33,664 | 30,850 |
Property expenses, excluding reimbursable tenant costs | 11,851 | 11,815 | 25,630 | 22,698 |
Stock-based compensation expense | 9,758 | 9,048 | 17,591 | 14,429 |
Impairment charges | 6,206 | 0 | 26,385 | 0 |
Operating property expenses | 3,191 | 2,049 | 5,978 | 3,960 |
Merger and other expenses | 1,984 | (2,599) | (338) | (3,075) |
Reimbursable costs from affiliates | 1,143 | 968 | 2,070 | 2,009 |
Total operating expenses | 186,758 | 171,185 | 385,378 | 338,088 |
Other Income and Expenses | ||||
Interest expense | (46,417) | (49,252) | (92,470) | (100,892) |
Gain on sale of real estate, net | 31,119 | 19,840 | 42,367 | 29,212 |
Other gains and (losses) | (21,746) | 7,545 | 13,999 | (33,643) |
Earnings (losses) from equity method investments | 7,401 | (156) | 12,173 | (9,889) |
Non-operating income | 5,974 | 3,065 | 14,520 | 9,421 |
Total other income and expenses | (23,669) | (18,958) | (9,411) | (105,791) |
Income before income taxes | 133,970 | 129,581 | 298,046 | 187,011 |
Provision for income taxes | (6,252) | (9,298) | (13,335) | (15,087) |
Net Income | 127,718 | 120,283 | 284,711 | 171,924 |
Net income attributable to noncontrolling interests | (40) | (38) | (38) | (45) |
Net Income Attributable to W. P. Carey | $ 127,678 | $ 120,245 | $ 284,673 | $ 171,879 |
Basic and Diluted Earnings Per Share [Abstract] | ||||
Basic earnings per share (usd per share) | $ 0.66 | $ 0.67 | $ 1.48 | $ 0.96 |
Diluted earnings per share (usd per share) | $ 0.66 | $ 0.67 | $ 1.47 | $ 0.96 |
Weighted-Average Shares Outstanding | ||||
Basic (in shares) | 194,019,451 | 180,099,370 | 192,971,256 | 178,379,654 |
Diluted (in shares) | 194,763,695 | 180,668,732 | 193,706,035 | 178,902,259 |
Real Estate | ||||
Real Estate: | ||||
Lease revenues | $ 314,354 | $ 289,064 | $ 622,079 | $ 573,729 |
Income from direct financing leases and loans receivable | 17,778 | 17,422 | 36,157 | 35,164 |
Operating property revenues | 5,064 | 3,245 | 8,929 | 5,424 |
Lease termination income and other | 2,591 | 5,059 | 16,713 | 6,644 |
Investment Management: | ||||
Operating property revenues | 5,064 | 3,245 | 8,929 | 5,424 |
Revenues | 339,787 | 314,790 | 683,878 | 620,961 |
Operating Expenses | ||||
Depreciation and amortization | 115,080 | 114,348 | 230,473 | 224,670 |
General and administrative | 20,841 | 20,464 | 43,925 | 42,547 |
Reimbursable tenant costs | 16,704 | 15,092 | 33,664 | 30,850 |
Property expenses, excluding reimbursable tenant costs | 11,851 | 11,815 | 25,630 | 22,698 |
Stock-based compensation expense | 9,758 | 9,048 | 17,591 | 14,429 |
Impairment charges | 6,206 | 0 | 26,385 | 0 |
Operating property expenses | 3,191 | 2,049 | 5,978 | 3,960 |
Merger and other expenses | 1,984 | (2,599) | (341) | (3,090) |
Total operating expenses | 185,615 | 170,217 | 383,305 | 336,064 |
Other Income and Expenses | ||||
Interest expense | (46,417) | (49,252) | (92,470) | (100,892) |
Gain on sale of real estate, net | 31,119 | 19,840 | 42,367 | 29,212 |
Other gains and (losses) | (20,155) | 7,472 | 14,263 | (34,717) |
Earnings (losses) from equity method investments | 4,529 | (1,854) | 3,742 | (12,973) |
Non-operating income | 5,975 | 3,065 | 14,517 | 9,337 |
Total other income and expenses | (24,949) | (20,729) | (17,581) | (110,033) |
Income before income taxes | 129,223 | 123,844 | 282,992 | 174,864 |
Provision for income taxes | (5,955) | (9,119) | (12,868) | (15,545) |
Net Income | 123,268 | 114,725 | 270,124 | 159,319 |
Net income attributable to noncontrolling interests | (40) | (38) | (38) | (45) |
Net Income Attributable to W. P. Carey | 123,228 | 114,687 | 270,086 | 159,274 |
Investment Management | ||||
Investment Management: | ||||
Revenues | 4,610 | 4,934 | 8,957 | 9,929 |
Operating Expenses | ||||
Merger and other expenses | 0 | 0 | 3 | 15 |
Reimbursable costs from affiliates | 1,143 | 968 | 2,070 | 2,009 |
Total operating expenses | 1,143 | 968 | 2,073 | 2,024 |
Other Income and Expenses | ||||
Other gains and (losses) | (1,591) | 73 | (264) | 1,074 |
Earnings (losses) from equity method investments | 2,872 | 1,698 | 8,431 | 3,084 |
Non-operating income | (1) | 0 | 3 | 84 |
Total other income and expenses | 1,280 | 1,771 | 8,170 | 4,242 |
Income before income taxes | 4,747 | 5,737 | 15,054 | 12,147 |
Provision for income taxes | (297) | (179) | (467) | 458 |
Net Income Attributable to W. P. Carey | 4,450 | 5,558 | 14,587 | 12,605 |
Investment Management | Asset management and other revenue | ||||
Real Estate: | ||||
Operating property revenues | 3,467 | 3,966 | 6,887 | 7,920 |
Investment Management: | ||||
Operating property revenues | 3,467 | 3,966 | 6,887 | 7,920 |
Investment Management | Reimbursable costs from affiliates | ||||
Real Estate: | ||||
Operating property revenues | 1,143 | 968 | 2,070 | 2,009 |
Investment Management: | ||||
Operating property revenues | $ 1,143 | $ 968 | $ 2,070 | $ 2,009 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 127,718 | $ 120,283 | $ 284,711 | $ 171,924 |
Other Comprehensive (Loss) Income | ||||
Foreign currency translation adjustments | (43,993) | 5,973 | (53,145) | (7,929) |
Unrealized gain (loss) on derivative instruments | 19,976 | (2,023) | 27,346 | 17,896 |
Reclassification of unrealized gain on investments to net income | 0 | 0 | (18,688) | 0 |
Other Comprehensive (Loss) Income | (24,017) | 3,950 | (44,487) | 9,967 |
Comprehensive Income | 103,701 | 124,233 | 240,224 | 181,891 |
Amounts Attributable to Noncontrolling Interests | ||||
Net income | (40) | (38) | (38) | (45) |
Unrealized gain on derivative instruments | 0 | (21) | 0 | (21) |
Comprehensive income attributable to noncontrolling interests | (40) | (59) | (38) | (66) |
Comprehensive Income Attributable to W. P. Carey | $ 103,661 | $ 124,174 | $ 240,186 | $ 181,825 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Total W.P. Carey Stockholders | $0.001 Par Value Common Stock | Additional Paid-in Capital | Distributions in Excess of Accumulated Earnings | Deferred Compensation Obligation | Accumulated Other Comprehensive Loss | Noncontrolling interests |
Beginning equity balance at Dec. 31, 2020 | $ 6,878,369 | $ 6,876,713 | $ 175 | $ 8,925,365 | $ (1,850,935) | $ 42,014 | $ (239,906) | $ 1,656 |
Beginning equity balance, shares at Dec. 31, 2020 | 175,401,757 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under our Equity Forwards, net | 309,507 | 309,507 | $ 5 | 309,502 | ||||
Shares issued under our Equity Forwards, net, shares | 4,523,209 | |||||||
Shares issued under ATM Program, net | 302,623 | 302,623 | $ 4 | 302,619 | ||||
Shares issued under ATM Program, net, shares | 4,225,624 | |||||||
Shares issued upon purchases under employee share purchase plan | 176 | 176 | 176 | |||||
Shares issued upon purchases under employee share purchase plan, shares | 2,597 | |||||||
Shares issued upon delivery of vested restricted share awards | (3,777) | (3,777) | (3,777) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 99,964 | |||||||
Amortization of stock-based compensation expense | 14,429 | 14,429 | 14,429 | |||||
Deferral of vested shares, net | 0 | (7,049) | 7,049 | |||||
Distributions to noncontrolling interests | (56) | (56) | ||||||
Dividends declared | (382,395) | (382,395) | 906 | (384,053) | 752 | |||
Net income | 171,924 | 171,879 | 171,879 | 45 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (7,929) | (7,929) | (7,929) | |||||
Unrealized gain (loss) on derivative instruments | 17,896 | 17,875 | 17,875 | 21 | ||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Jun. 30, 2021 | 7,300,767 | 7,299,101 | $ 184 | 9,542,171 | (2,063,109) | 49,815 | (229,960) | 1,666 |
Ending equity balance, shares at Jun. 30, 2021 | 184,253,151 | |||||||
Beginning equity balance at Mar. 31, 2021 | 6,890,455 | 6,888,807 | $ 178 | 9,061,143 | (1,988,440) | 49,815 | (233,889) | 1,648 |
Beginning equity balance, shares at Mar. 31, 2021 | 177,520,962 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under our Equity Forwards, net | 309,507 | 309,507 | $ 5 | 309,502 | ||||
Shares issued under our Equity Forwards, net, shares | 4,523,209 | |||||||
Shares issued under ATM Program, net | 162,336 | 162,336 | $ 1 | 162,335 | ||||
Shares issued under ATM Program, net, shares | 2,205,509 | |||||||
Shares issued upon purchases under employee share purchase plan | 176 | 176 | 176 | |||||
Shares issued upon purchases under employee share purchase plan, shares | 2,597 | |||||||
Shares issued upon delivery of vested restricted share awards | (33) | (33) | (33) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 874 | |||||||
Amortization of stock-based compensation expense | 9,048 | 9,048 | 9,048 | |||||
Distributions to noncontrolling interests | (41) | (41) | ||||||
Dividends declared | (194,914) | (194,914) | (194,914) | |||||
Net income | 120,283 | 120,245 | 120,245 | 38 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | 5,973 | 5,973 | 5,973 | |||||
Unrealized gain (loss) on derivative instruments | (2,023) | (2,044) | (2,044) | 21 | ||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Jun. 30, 2021 | 7,300,767 | 7,299,101 | $ 184 | 9,542,171 | (2,063,109) | 49,815 | (229,960) | 1,666 |
Ending equity balance, shares at Jun. 30, 2021 | 184,253,151 | |||||||
Beginning equity balance at Dec. 31, 2021 | $ 7,583,451 | 7,581,785 | $ 190 | 9,977,686 | (2,224,231) | 49,810 | (221,670) | 1,666 |
Beginning equity balance, shares at Dec. 31, 2021 | 190,013,751 | 190,013,751 | ||||||
W.P. Carey Stockholders | ||||||||
Shares issued under ATM Program, net | $ 218,101 | 218,101 | $ 3 | 218,098 | ||||
Shares issued under ATM Program, net, shares | 2,740,295 | |||||||
Shares issued upon purchases under employee share purchase plan | 155 | 155 | 155 | |||||
Shares issued upon purchases under employee share purchase plan, shares | 2,040 | |||||||
Shares issued upon delivery of vested restricted share awards | (6,600) | (6,600) | (6,600) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 135,706 | |||||||
Amortization of stock-based compensation expense | 17,591 | 17,591 | 17,591 | |||||
Deferral of vested shares, net | 0 | (6,696) | 6,696 | |||||
Distributions to noncontrolling interests | (65) | (65) | ||||||
Dividends declared | (411,395) | (411,395) | 1,380 | (413,281) | 506 | |||
Net income | 284,711 | 284,673 | 284,673 | 38 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (53,145) | (53,145) | (53,145) | |||||
Unrealized gain (loss) on derivative instruments | 27,346 | 27,346 | 27,346 | |||||
Reclassification of unrealized gain on investments to net income | (18,688) | (18,688) | (18,688) | |||||
Ending equity balance at Jun. 30, 2022 | $ 7,641,462 | 7,639,823 | $ 193 | 10,201,614 | (2,352,839) | 57,012 | (266,157) | 1,639 |
Ending equity balance, shares at Jun. 30, 2022 | 192,891,792 | 192,891,792 | ||||||
Beginning equity balance at Mar. 31, 2022 | $ 7,694,661 | 7,693,011 | $ 192 | 10,152,426 | (2,274,619) | 57,152 | (242,140) | 1,650 |
Beginning equity balance, shares at Mar. 31, 2022 | 192,394,960 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under ATM Program, net | 39,136 | 39,136 | $ 1 | 39,135 | ||||
Shares issued under ATM Program, net, shares | 491,068 | |||||||
Shares issued upon purchases under employee share purchase plan | 155 | 155 | 155 | |||||
Shares issued upon purchases under employee share purchase plan, shares | 2,040 | |||||||
Shares issued upon delivery of vested restricted share awards, shares | 3,724 | |||||||
Amortization of stock-based compensation expense | 9,758 | 9,758 | 9,758 | |||||
Deferral of vested shares, net | 140 | (140) | ||||||
Distributions to noncontrolling interests | (51) | (51) | ||||||
Dividends declared | (205,898) | (205,898) | (205,898) | |||||
Net income | 127,718 | 127,678 | 127,678 | 40 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (43,993) | (43,993) | (43,993) | |||||
Unrealized gain (loss) on derivative instruments | 19,976 | 19,976 | 19,976 | |||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Jun. 30, 2022 | $ 7,641,462 | $ 7,639,823 | $ 193 | $ 10,201,614 | $ (2,352,839) | $ 57,012 | $ (266,157) | $ 1,639 |
Ending equity balance, shares at Jun. 30, 2022 | 192,891,792 | 192,891,792 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.059 | $ 1.050 | $ 2.116 | $ 2.098 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows — Operating Activities | ||
Net income | $ 284,711 | $ 171,924 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 237,672 | 232,111 |
Gain on sale of real estate, net | (42,367) | (29,212) |
Straight-line rent adjustments | (27,146) | (21,986) |
Impairment charges | 26,385 | 0 |
Amortization of rent-related intangibles and deferred rental revenue | 22,701 | 28,554 |
Stock-based compensation expense | 17,591 | 14,429 |
Distributions of earnings from equity method investments | 15,907 | 3,730 |
Net realized and unrealized (gains) losses on equity securities, extinguishment of debt, foreign currency exchange rate movements, and other | (12,621) | 39,781 |
(Earnings) losses from equity method investments | (12,173) | 9,889 |
Deferred income tax benefit | (1,597) | (2,351) |
Asset management revenue received in shares of CPA:18 – Global | (1,024) | (6,292) |
Change in allowance for credit losses | (980) | (6,249) |
Net changes in other operating assets and liabilities | (60,176) | (35,581) |
Net Cash Provided by Operating Activities | 446,883 | 398,747 |
Cash Flows — Investing Activities | ||
Purchases of real estate | (614,397) | (837,003) |
Proceeds from sales of real estate | 115,133 | 98,433 |
Proceeds from redemption of securities | 65,000 | 0 |
Funding for real estate construction, redevelopments, and other capital expenditures on real estate | (56,741) | (54,381) |
Capital contributions to equity method investments | (39,609) | (88,692) |
Funding of short-term loans to affiliates | (26,000) | (31,000) |
Investment in loan receivable | (19,293) | 0 |
Proceeds from repayment of short-term loans to affiliates | 10,000 | 37,048 |
Return of capital from equity method investments | 8,105 | 11,627 |
Other investing activities, net | (2,723) | (21,913) |
Net Cash Used in Investing Activities | (560,525) | (885,881) |
Cash Flows — Financing Activities | ||
Proceeds from Unsecured Revolving Credit Facility | 696,984 | 1,088,217 |
Repayments of Unsecured Revolving Credit Facility | (657,866) | (893,104) |
Dividends paid | (407,728) | (372,585) |
Proceeds from term loan | 283,139 | 0 |
Proceeds from shares issued under ATM Program, net of selling costs | 218,095 | 302,512 |
Scheduled payments of mortgage principal | (14,705) | (20,239) |
Prepayments of mortgage principal | (10,380) | (426,907) |
Payments for withholding taxes upon delivery of equity-based awards | (6,599) | (3,777) |
Other financing activities, net | 5,656 | 2,250 |
Distributions paid to noncontrolling interests | (65) | (56) |
Proceeds from issuance of Senior Unsecured Notes | 0 | 1,038,391 |
Redemption of Senior Unsecured Notes | 0 | (617,442) |
Proceeds from shares issued under our Equity Forwards, net of selling costs | 0 | 309,864 |
Payment of financing costs | 0 | (8,176) |
Net Cash Provided by Financing Activities | 106,531 | 398,948 |
Change in Cash and Cash Equivalents and Restricted Cash During the Period | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (10,346) | (5,390) |
Net decrease in cash and cash equivalents and restricted cash | (17,457) | (93,576) |
Cash and cash equivalents and restricted cash, beginning of period | 217,950 | 311,779 |
Cash and cash equivalents and restricted cash, end of period | $ 200,493 | $ 218,203 |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization W. P. Carey Inc. (“W. P. Carey”) is a REIT that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property. Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.” On February 27, 2022, we, Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”) (a publicly owned, non-traded REIT that primarily invests in commercial real estate properties and is advised by us), CPA:18 Limited Partnership (a subsidiary of CPA:18 – Global, “CPA:18 LP”), and certain of our subsidiaries entered into an agreement and plan of merger (the “Merger Agreement”), pursuant to which CPA:18 – Global will merge with and into one of our indirect subsidiaries in exchange for shares of our common stock and cash (the “Proposed Merger”). The Proposed Merger and related transactions were approved by the stockholders of CPA:18 – Global at a special meeting on July 26, 2022. We currently expect the transaction to close on August 1, 2022. Subject to the terms and conditions contained in the Merger Agreement, at the effective time of the Proposed Merger, each share of CPA:18 – Global common stock issued and outstanding immediately prior to the effective time of the Proposed Merger will be canceled and, in exchange for cancellation of such share, the rights attaching to such share will be converted automatically into the right to receive (i) 0.0978 shares of our common stock and (ii) $3.00 in cash, which we refer to herein as the Merger Consideration. Each share of CPA:18 – Global common stock owned by us or any of our subsidiaries immediately prior to the effective time of the Proposed Merger will automatically be canceled and retired, and will cease to exist, for no Merger Consideration. We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. Through our taxable REIT subsidiaries (“TRSs”), we also earn revenue as the advisor to certain non-traded investment programs. We hold all of our real estate assets attributable to our Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs. At June 30, 2022, we were the advisor to the following entities ( Note 3 ): • CPA:18 – Global; and • Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe. We refer to CPA:18 – Global and CESH collectively as the “Managed Programs.” We no longer raise capital for new or existing funds, but currently expect to continue managing CPA:18 – Global and CESH through the end of their respective life cycles ( Note 3 ). Reportable Segments Real Estate — Lease revenues from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Northern and Western Europe, which are leased to companies on a triple-net lease basis. At June 30, 2022, our owned portfolio was comprised of our full or partial ownership interests in 1,357 properties, totaling approximately 161 million square feet, substantially all of which were net leased to 356 tenants, with a weighted-average lease term of 11.0 years and an occupancy rate of 99.1%. In addition, at June 30, 2022, our portfolio was comprised of full or partial ownership interests in 20 operating properties, including 19 self-storage properties and one hotel, totaling approximately 1.4 million square feet. Investment Management — Through our TRSs, we manage the real estate investment portfolios for the Managed Programs, for which we earn asset management revenue. We may earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing a liquidity event for CPA:18 – Global’s stockholders. In addition, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed Programs ( Note 7 ) and (ii) special general partner interest in the operating partnership of CPA:18 – Global (through which we participate in its cash flows ( Note 3 )), in our Investment Management segment. At June 30, 2022, the Managed Programs owned all or a portion of 46 net-leased properties (including certain properties in which we also have an ownership interest), totaling approximately 9.7 million square feet, substantially all of which were leased to 47 tenants, with an occupancy rate of approximately 99.3%. The Managed Programs also had interests in 66 operating properties (totaling approximately 5.1 million square feet in the aggregate) and two active build-to-suit projects at the same date. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation Our interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a complete statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this Report reflects all normal and recurring adjustments necessary for a fair presentation of financial position, results of operations, and cash flows. Our interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and accompanying notes for the year ended December 31, 2021, which are included in the 2021 Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this Report. Operating results for interim periods are not necessarily indicative of operating results for an entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. Basis of Consolidation Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2021 Annual Report. At both June 30, 2022 and December 31, 2021, we considered 14 entities to be VIEs, of which we consolidated six, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): June 30, 2022 December 31, 2021 Land, buildings and improvements $ 429,623 $ 426,831 Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 44,165 42,884 Above-market rent intangible assets 26,720 26,720 Accumulated depreciation and amortization (162,739) (154,413) Total assets 499,806 500,884 Non-recourse mortgages, net $ 1,279 $ 1,485 Below-market rent and other intangible liabilities, net 19,711 20,568 Total liabilities 44,233 46,302 At both June 30, 2022 and December 31, 2021, our eight unconsolidated VIEs included our interests in (i) six unconsolidated real estate investments, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. As of June 30, 2022, and December 31, 2021, the net carrying amount of our investments in these entities was $612.9 million and $581.3 million, respectively, and our maximum exposure to loss in these entities was limited to our investments. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. We currently present Income from direct financing leases and loans receivable on its own line item in the consolidated statements of income. Previously, income from direct financing leases was included within Lease revenues and income from loans receivable was included within Lease termination income and other in the consolidated statements of income. Revenue Recognition There have been no significant changes in our policies for revenue from contracts under Accounting Standards Codification (“ASC”) 606 from what was disclosed in the 2021 Annual Report. ASC 606 does not apply to our lease revenues, which constitute a majority of our revenues, but primarily applies to revenues generated from our hotel operating properties and our Investment Management segment. Revenue from contracts for our Real Estate segment primarily represented hotel operating property revenues of $3.3 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $2.5 million for the six months ended June 30, 2022 and 2021, respectively ( Note 15 ). Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 3 . Lease revenue (including straight-line lease revenue) is only recognized when deemed probable of collection. Collectibility is assessed for each tenant receivable using various criteria including credit ratings ( Note 5 ), guarantees, past collection issues, and the current economic and business environment affecting the tenant. If collectibility of the contractual rent stream is not deemed probable, revenue will only be recognized upon receipt of cash from the tenant. Restricted Cash The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): June 30, 2022 December 31, 2021 Cash and cash equivalents $ 103,590 $ 165,427 Restricted cash (a) 96,903 52,523 Total cash and cash equivalents and restricted cash $ 200,493 $ 217,950 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Proposed Merger with CPA:18 – Global The Proposed Merger with CPA:18 – Global is described in Note 1 . Advisory Agreements and Partnership Agreements with the Managed Programs We currently have advisory agreements with CPA:18 – Global and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. We no longer raise capital for new or existing funds, but we currently expect to continue to manage CPA:18 – Global and CESH and earn various fees (as described below) through the end of their respective life cycles. We have partnership agreements with CPA:18 – Global and CESH, and under the partnership agreement with CPA:18 – Global, we are entitled to receive certain cash distributions from its operating partnership. Upon the expected completion of the Proposed Merger, the advisory agreement and partnership agreement with CPA:18 – Global will be terminated, after which we will no longer receive fees and distributions from CPA:18 – Global. The merger between Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”), two former affiliates (the “CWI 1 and CWI 2 Merger”), closed on April 13, 2020 and is discussed in detail in the 2021 Annual Report. Subsequently, CWI 2 was renamed Watermark Lodging Trust, Inc. (“WLT”). In connection with the CWI 1 and CWI 2 Merger, we entered into a transition services agreement, under which we provided certain transition services at cost to WLT generally for a period of 12 months from closing. On October 13, 2021, all services provided under the transition services agreement were terminated. The following tables present a summary of revenue earned, reimbursable costs, and distributions of Available Cash received/accrued from the Managed Programs and WLT for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Asset management revenue (a) (b) $ 3,467 $ 3,966 $ 6,887 $ 7,920 Distributions of Available Cash (c) 2,814 1,787 5,401 3,326 Reimbursable costs from affiliates (a) 1,143 968 2,070 2,009 Interest income on deferred acquisition fees and loans to affiliates (d) 75 30 108 64 $ 7,499 $ 6,751 $ 14,466 $ 13,319 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 CPA:18 – Global $ 6,937 $ 5,611 $ 13,388 $ 10,970 CESH 562 1,044 1,078 2,145 WLT (reimbursed transition services) — 96 — 204 $ 7,499 $ 6,751 $ 14,466 $ 13,319 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Asset management and other revenue in the consolidated statements of income. (c) Included within Earnings (losses) from equity method investments in the consolidated statements of income. (d) Included within Non-operating income in the consolidated statements of income. The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands): June 30, 2022 December 31, 2021 Short-term loans to affiliates, including accrued interest $ 16,108 $ — Asset management fees receivable 1,767 494 Reimbursable costs 873 974 Accounts receivable 171 336 Current acquisition fees receivable 18 19 Deferred acquisition fees receivable, including accrued interest — 3 $ 18,937 $ 1,826 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 remaining Managed Programs: Managed Program Rate Payable Description CPA:18 – Global 0.5% – 1.5% In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable in shares of its Class A common stock for 2021 through February 28, 2022; payable in cash effective as of March 1, 2022, in light of the Proposed Merger Rate depends on the type of investment and is based on the average market or average equity value, as applicable CESH 1.0% In cash Based on gross assets at fair value Structuring and Other Advisory Revenue Under the terms of the advisory agreements with the Managed Programs, we may earn revenue for structuring and negotiating investments. For CPA:18 – Global and CESH, we may earn fees of 4.5% and 2.0%, respectively, of the total aggregate cost of the investments or commitments made. Reimbursable Costs from Affiliates The existing Managed Programs reimburse us in cash for certain personnel and overhead costs that we incur on their behalf. For CPA:18 – Global, such costs (excluding those related to our legal transactions group, our senior management, and our investments team) are charged to CPA:18 – Global based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and personnel costs are capped at 1.0% of CPA:18 – Global’s pro rata lease revenues for both 2022 and 2021. For CESH, reimbursements are based on actual expenses incurred. Distributions of Available Cash We are entitled to receive distributions of up to 10% of the Available Cash (as defined in CPA:18 – Global’s partnership agreement) from the operating partnership of CPA:18 – Global, payable quarterly in arrears. 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. Such back-end fees or interests include or may include disposition fees, interests in disposition proceeds, and distributions related to ownership of shares or limited partnership units in the Managed Programs. There can be no assurance as to whether or when any back-end fees or interests will be realized. Subject to the terms and conditions of the Merger Agreement, upon consummation of the Proposed Merger, we have agreed to waive certain back-end fees that we would have been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our advisory agreement and partnership agreement with CPA:18 – Global. Other Transactions with Affiliates Loans to Affiliates From time to time, our board of directors has approved the making of secured and unsecured loans or lines of credit from us to certain of the Managed Programs, at our sole discretion, generally for the purpose of facilitating acquisitions or for working capital purposes. The principal outstanding balance on our line of credit to CPA:18 – Global was $16.0 million as of June 30, 2022. No amounts were outstanding as of December 31, 2021. In July 2022, CPA:18 – Global repaid the principal outstanding balance in full. Other At June 30, 2022, we owned interests in nine jointly owned investments in real estate, with the remaining interests held by affiliates or third parties. We account for eight such investments under the equity method of accounting ( Note 7 ) and consolidate the remaining investment. In addition, we owned stock of CPA:18 – Global and limited partnership units of CESH at that date. We accounted for our investment in CPA:18 – Global under the equity method of accounting and elected to account for our investment in CESH under the fair value option ( Note 7 ). |
Land, Buildings and Improvement
Land, Buildings and Improvements and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2022 | |
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): June 30, 2022 December 31, 2021 Land $ 2,136,338 $ 2,151,327 Buildings and improvements 9,743,900 9,525,858 Real estate under construction 62,732 114,549 Less: Accumulated depreciation (1,530,006) (1,448,020) $ 10,412,964 $ 10,343,714 During the six months ended June 30, 2022, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro decreased by 8.3% to $1.0387 from $1.1326. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $328.8 million from December 31, 2021 to June 30, 2022. In connection with a change in lease classification due to termination of the underlying lease, we reclassified one property with an aggregate carrying value of $17.3 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements during the six months ended June 30, 2022 ( Note 5 ). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $73.0 million and $69.4 million for the three months ended June 30, 2022 and 2021, respectively, and $145.0 million and $136.4 million for the six months ended June 30, 2022 and 2021, respectively. Acquisitions of Real Estate During the six months ended June 30, 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Capitalized Costs Pleasant Prairie, Wisconsin 1 1/10/2022 Industrial $ 20,024 Various, Spain (a) 26 2/3/2022 Funeral Home 146,364 Various, Denmark (a) (b) 8 2/11/2022 Retail 33,976 Laval, Canada (a) 1 2/18/2022 Industrial 21,459 Chattanooga, Tennessee (c) 1 3/4/2022 Warehouse 43,198 Various, United States (4 properties), Canada (1 property, and Mexico (1 property) 6 4/27/2022; 5/9/2022 Industrial 80,595 Various, United States 6 5/16/2022 Industrial; Warehouse 110,381 Various, Denmark (a) (b) 10 6/1/2022; 6/30/2022 Retail 42,635 Medina, Ohio 1 6/17/2022 Industrial 28,913 Bree, Belgium (a) 1 6/30/2022 Warehouse 96,697 61 $ 624,242 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) We also entered into purchase agreements to acquire 13 additional retail facilities leased to this tenant totaling $49.3 million (based on the exchange rate of the Danish krone at June 30, 2022), which is expected to be completed in 2022. (c) We also committed to fund an additional $22.8 million for an expansion at the facility, which is expected to be completed in the second quarter of 2023. The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 77,122 Buildings and improvements 463,233 Intangible assets and liabilities: In-place lease (weighted-average expected life of 22.8 years) 74,979 Below-market rent (expected life of 6.8 years) (3,379) Right-of-use assets: Prepaid rent (a) 12,287 $ 624,242 __________ (a) Represents prepaid rent for a land lease. Therefore, there is no future obligation on the land lease asset and no corresponding operating lease liability. This asset is included in In-place lease intangible assets and other in the consolidated balance sheets. Real Estate Under Construction During the six months ended June 30, 2022, we capitalized real estate under construction totaling $46.4 million. The number of construction projects in progress with balances included in real estate under construction was five and six as of June 30, 2022 and December 31, 2021, respectively. Aggregate unfunded commitments totaled approximately $34.0 million and $55.3 million as of June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022, we completed the following construction projects (dollars in thousands): Property Location(s) Primary Transaction Type Number of Properties Date of Completion Property Type Total Capitalized Costs (a) Hurricane, Utah Expansion 1 3/8/2022 Warehouse $ 20,517 Breda, Netherlands (a) Expansion 1 3/18/2022 Warehouse 4,721 Bowling Green, Kentucky Renovation 1 4/26/2022 Warehouse 72,971 3 $ 98,209 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. During the six months ended June 30, 2022, we committed to fund a build-to-suit project for an outdoor advertising structure in Mount Laurel, New Jersey, for an aggregate amount of $2.1 million. We currently expect to complete the project in the third quarter of 2022. Capitalized interest incurred during construction was $0.4 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $1.1 million and $1.3 million for the six months ended June 30, 2022 and 2021, respectively, which reduces Interest expense in the consolidated statements of income. Dispositions of Properties During the six months ended June 30, 2022, we sold 12 properties, which were classified as Land, buildings and improvements subject to operating leases. As a result, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $58.8 million from December 31, 2021 to June 30, 2022 ( Note 14 ). Lease Termination Income and Other 2022 — For the three and six months ended June 30, 2022, lease termination income and other on our consolidated statements of income included: (i) other lease-related settlements totaling $1.4 million and $6.1 million, respectively ; (ii) income from a parking garage attached to one of our net-leased properties totaling $0.6 million and $1.2 million, respectively, and (iii) lease termination income of $8.2 million received from a tenant during the six months ended June 30, 2022. 2021 — For the three and six months ended June 30, 2021, lease termination income and other on our consolidated statements of income included: (i) lease-related settlements totaling $4.4 million and $5.3 million, respectively; and (ii) income from a parking garage attached to one of our net-leased properties totaling $0.4 million and $0.9 million, respectively. Leases Operating Lease Income Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lease income — fixed $ 281,269 $ 261,704 $ 557,410 $ 519,031 Lease income — variable (a) 33,085 27,360 64,669 54,698 Total operating lease income $ 314,354 $ 289,064 $ 622,079 $ 573,729 __________ (a) Includes (i) rent increases based on changes in the U.S. Consumer Price Index and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. Land, Buildings and Improvements — Operating Properties At both June 30, 2022 and December 31, 2021, Land, buildings and improvements attributable to operating properties consisted of our investments in ten consolidated self-storage properties and one consolidated hotel. Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands): June 30, 2022 December 31, 2021 Land $ 10,452 $ 10,452 Buildings and improvements 73,249 73,221 Less: Accumulated depreciation (18,051) (16,750) $ 65,650 $ 66,923 Depreciation expense on our buildings and improvements attributable to operating properties was $0.7 million for both the three months ended June 30, 2022 and 2021, and $1.4 million for both the six months ended June 30, 2022 and 2021. Assets Held for Sale, Net Below is a summary of our properties held for sale (in thousands): June 30, 2022 December 31, 2021 Land, buildings and improvements $ — $ 10,628 Accumulated depreciation and amortization — (2,359) Assets held for sale, net $ — $ 8,269 At December 31, 2021, we had two properties classified as Assets held for sale, net, with an aggregate carrying value of $8.3 million. These properties were sold in the first quarter of 2022. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in direct financing leases and loans receivable (net of allowance for credit losses), and deferred acquisition fees. Operating leases are not included in finance receivables. Finance Receivables Net investments in direct financing leases and loans receivable are summarized as follows (in thousands): Maturity Date June 30, 2022 December 31, 2021 Net investments in direct financing leases (a) 2022 – 2036 $ 530,318 $ 572,205 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 232,001 217,229 Secured loans receivable (c) 2022 – 2025 24,143 24,143 $ 786,462 $ 813,577 __________ (a) Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases . (b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Maturity dates reflect the current lease maturity dates. (c) Amounts are net of allowance for credit losses of $12.6 million as of both June 30, 2022 and December 31, 2021. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): June 30, 2022 December 31, 2021 Lease payments receivable $ 354,530 $ 414,002 Unguaranteed residual value 504,806 545,896 859,336 959,898 Less: unearned income (317,396) (370,353) Less: allowance for credit losses (a) (11,622) (17,340) $ 530,318 $ 572,205 __________ (a) During the six months ended June 30, 2022 and 2021, we recorded a net reversal of allowance for credit losses of $1.0 million and $6.2 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions and improved credit quality for certain tenants, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2022, we reduced the allowance for credit losses balance by $4.7 million, in connection with the reclassification of a property from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases, as described below. Income from direct financing leases, which is included in Income from direct financing leases and loans receivable in the consolidated financial statements, was $13.3 million and $16.2 million for the three months ended June 30, 2022 and 2021, respectively, and $27.2 million and $33.3 million for the six months ended June 30, 2022 and 2021, respectively. During the six months ended June 30, 2022, we reclassified one property with an aggregate carrying value of $17.3 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases in connection with a change in lease classification due to termination of the underlying lease. During the six months ended June 30, 2022, the U.S. dollar strengthened against the euro, resulting in a $31.0 million decrease in the carrying value of Net investments in direct financing leases and loans receivable from December 31, 2021 to June 30, 2022. Loans Receivable During the six months ended June 30, 2022, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Investment Various, Belgium (a) 5 6/22/2022 Retail $ 19,795 5 $ 19,795 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. Earnings from our loans receivable are included in Income from direct financing leases and loans receivable in the consolidated financial statements, and totaled $4.5 million and $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and $8.9 million and $1.8 million for the six months ended June 30, 2022 and 2021, respectively. In the first quarter of 2021, we entered into an agreement with the borrowers for our two secured loans receivable, who agreed to pay us at maturity a total of $3.7 million of unpaid interest due over the previous year. We did not recognize this interest in the consolidated financial statements due to uncertainty of collectibility. Credit Quality of Finance Receivables We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both June 30, 2022 and December 31, 2021, other than uncollected income from our secured loans receivable (as noted above), no material balances of our finance receivables were past due. Other than the lease termination noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the six months ended June 30, 2022. We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly. A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 1 – 3 18 17 $ 698,244 $ 703,280 4 8 9 112,433 140,230 5 — — — — $ 810,677 $ 843,510 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other IntangiblesWe have recorded lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from less than one year to 48 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements. Goodwill within our Real Estate segment decreased by $10.1 million during the six months ended June 30, 2022 due to foreign currency translation adjustments, from $872.2 million as of December 31, 2021 to $862.1 million as of June 30, 2022. Goodwill within our Investment Management segment was $29.3 million as of June 30, 2022, unchanged from December 31, 2021. Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 19,661 $ (18,923) $ 738 $ 19,553 $ (18,682) $ 871 Trade name 3,975 (3,975) — 3,975 (3,581) 394 23,636 (22,898) 738 23,528 (22,263) 1,265 Lease Intangibles: In-place lease 2,274,546 (983,304) 1,291,242 2,279,905 (934,663) 1,345,242 Above-market rent 822,470 (511,785) 310,685 843,410 (489,861) 353,549 3,097,016 (1,495,089) 1,601,927 3,123,315 (1,424,524) 1,698,791 Goodwill Goodwill 891,464 — 891,464 901,529 — 901,529 Total intangible assets $ 4,012,116 $ (1,517,987) $ 2,494,129 $ 4,048,372 $ (1,446,787) $ 2,601,585 Finite-Lived Intangible Liabilities Below-market rent $ (272,239) $ 114,184 $ (158,055) $ (272,483) $ 105,908 $ (166,575) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711) — (16,711) (16,711) — (16,711) Total intangible liabilities $ (288,950) $ 114,184 $ (174,766) $ (289,194) $ 105,908 $ (183,286) During the six months ended June 30, 2022, the U.S. dollar strengthened against the euro, resulting in a decrease of $53.4 million in the carrying value of our net intangible assets from December 31, 2021 to June 30, 2022. Net amortization of intangibles, including the effect of foreign currency translation, was $50.8 million and $57.6 million for the three months ended June 30, 2022 and 2021, respectively, and $103.5 million and $111.6 million for the six months ended June 30, 2022 and 2021, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments We own interests in the Managed Programs and certain unconsolidated real estate investments with CPA:18 – Global and third parties. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences) or at fair value by electing the equity method fair value option available under GAAP. We classify distributions received from equity method investments using the cumulative earnings approach. In general, distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities. Managed Programs We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor, we do not exert control over, but we do have the ability to exercise significant influence over, the Managed Programs. Operating results of the Managed Programs are included in the Investment Management segment. The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands): % of Outstanding Interests Owned at Carrying Amount of Investment at Fund June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 CPA:18 – Global (a) 5.718 % 5.578 % $ 60,989 $ 60,836 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CESH (b) 2.430 % 2.430 % 2,488 3,689 $ 63,686 $ 64,734 __________ (a) During the six months ended June 30, 2022, we received certain asset management revenue from CPA:18 – Global in shares of its common stock, which increased our ownership percentage in CPA:18 – Global. Effective as of March 1, 2022, we began receiving asset management revenue from CPA:18 – Global in cash in light of the Proposed Merger ( Note 1 ). (b) Investment is accounted for at fair value. CPA:18 – Global — We received distributions from this investment during the six months ended June 30, 2022 and 2021 of $1.1 million and $0.9 million, respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the six months ended June 30, 2022 and 2021 of $5.4 million and $3.3 million, respectively ( Note 3 ). CESH — We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH on a one quarter lag; therefore, the balance of our equity method investment in CESH recorded as of June 30, 2022 is based on the estimated fair value of our investment as of March 31, 2022. We received distributions from this investment during the six months ended June 30, 2022 and 2021 of $1.2 million and $0.1 million, respectively. At June 30, 2022 and December 31, 2021, the aggregate unamortized basis differences on our equity method investments in the Managed Programs were $22.0 million and $23.3 million, respectively. Interests in Other Unconsolidated Real Estate Investments and WLT We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with affiliates or third parties. We account for these investments under the equity method of accounting. In addition, we own shares of WLT common stock, which we accounted for under the equity method of accounting as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022, as described in Note 8 . Operating results of our unconsolidated real estate investments are included in the Real Estate segment. The following table sets forth our ownership interests in our equity method investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee/Fund/Description Co-owner Ownership Interest June 30, 2022 December 31, 2021 Las Vegas Retail Complex (a) Third Party N/A $ 141,341 $ 104,114 Johnson Self Storage Third Party 90% 66,552 67,573 Kesko Senukai (b) Third Party 70% 33,416 41,955 Harmon Retail Corner (c) Third Party 15% 24,725 24,435 State Farm Mutual Automobile Insurance Co. CPA:18 – Global 50% 6,411 7,129 Apply Sørco AS (d) CPA:18 – Global 49% 3,977 5,909 Fortenova Grupa d.d. (b) CPA:18 – Global 20% 2,146 2,936 Bank Pekao (b) (e) CPA:18 – Global 50% 2,106 4,460 WLT (f) WLT N/A — 33,392 $ 280,674 $ 291,903 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2022) for a retail complex in Las Vegas, Nevada. Through June 30, 2022, we funded $141.0 million, including $37.3 million during the six months ended June 30, 2022. Interest income from this investment was $3.4 million and $0.3 million for the six months ended June 30, 2022 and 2021, respectively, which was recognized within Earnings (losses) from equity method investments in our consolidated statements of income. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment is reported using the hypothetical liquidation at book value (“HLBV”) model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (e) We recognized our $4.6 million proportionate share of an impairment charge recorded on this investment during the six months ended June 30, 2022, which was reflected within Earnings (losses) from equity method investments in our consolidated statements of income. The estimated fair value of the investment is based on the estimated selling price of the international office facility owned by the investment, and the fair value of the non-recourse mortgage encumbering the property also approximates the fair value of the property. (f) We own 12,208,243 shares of common stock of WLT, which we accounted for as an equity method investment in real estate as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022 ( Note 8 ). We received aggregate distributions of $18.4 million and $11.1 million from our other unconsolidated real estate investments for the six months ended June 30, 2022 and 2021, respectively. At June 30, 2022 and December 31, 2021, the aggregate unamortized basis differences on our unconsolidated real estate investments were $7.6 million and $7.9 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. Items Measured at Fair Value on a Recurring Basis The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items, we have also provided the unobservable inputs. Derivative Assets and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are comprised of foreign currency collars, interest rate swaps, interest rate caps, and stock warrants ( Note 9 ). The valuation of our derivative instruments (excluding stock warrants) is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market. The stock warrants were measured at fair value using valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market. Equity Method Investment in CESH — We have elected to account for our investment in CESH, which is included in Equity method investments in the consolidated financial statements, at fair value by selecting the equity method fair value option available under GAAP ( Note 7 ). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value. Investment in Shares of Lineage Logistics — We have elected to apply the measurement alternative under Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10) to account for our investment in shares of Lineage Logistics (a cold storage REIT), which is included in Other assets, net in the consolidated financial statements. Under this alternative, the carrying value is adjusted for any impairments or changes in fair value resulting from observable transactions for similar or identical investments in the issuer. We classified this investment as Level 3 because it is not traded in an active market. We recognized non-cash unrealized gains on our investment in shares of Lineage Logistics of $23.4 million during the six months ended June 30, 2021, due to a secondary market transaction at a higher price per share, which was recorded within Other gains and (losses) in the consolidated financial statements. In addition, during the six months ended June 30, 2022 and 2021, we received cash dividends of $4.3 million and $6.4 million, respectively, from our investment in shares of Lineage Logistics, which was recorded within Non-operating income in the consolidated financial statements. The fair value of this investment was $366.3 million at both June 30, 2022 and December 31, 2021. Investment in Shares of GCIF — We account for our investment in shares of Guggenheim Credit Income Fund (“GCIF”), which is included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 2 because we used a quoted price from an inactive market to determine its fair value. During the six months ended June 30, 2022, we received liquidating distributions from our investment in shares of GCIF totaling $1.1 million, which reduced the cost basis of our investment (in March 2021, GCIF announced its intention to liquidate and to distribute substantially all of its assets). The fair value of our investment in shares of GCIF was $3.3 million and $4.3 million at June 30, 2022 and December 31, 2021, respectively. Investment in Preferred Shares of WLT — In January 2022, WLT redeemed in full our 1,300,000 shares of its preferred stock for gross proceeds of $65.0 million (based on the liquidation preference of $50.00 per share). In connection with this redemption, we reclassified an unrealized gain on this investment of $18.7 million from Accumulated other comprehensive loss to Other gains and (losses) in the consolidated financial statements ( Note 12 ). Prior to this redemption, we accounted for this investment, which was included in Other assets, net in the consolidated financial statements, as available-for-sale debt securities at fair value (Level 3). During the six months ended June 30, 2022, we received cash dividends of $0.9 million from our investment in preferred shares of WLT, which was recorded within Non-operating income in the consolidated financial statements. The fair value of our investment in preferred shares of WLT was $65.0 million as of December 31, 2021. Investment in Common Shares of WLT — In January 2022, we reclassified our investment in 12,208,243 shares of common stock of WLT from equity method investments to equity securities, since we no longer have significant influence over WLT, following the redemption of our investment in preferred shares of WLT, as described above. As a result, we account for this investment, which is included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 3 because it is not traded in an active market. The carrying value of this investment was $33.4 million as of December 31, 2021, which was included within Equity method investments in the consolidated financial statements. We recognized non-cash unrealized gains of $43.4 million on our investment in common shares of WLT during the six months ended June 30, 2022, reflecting the most recently published net asset value of WLT, which was recorded within Other gains and (losses) in the consolidated financial statements. The fair value of our investment in common shares of WLT was $76.8 million as of June 30, 2022. We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the six months ended June 30, 2022 or 2021. Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other gains and (losses) on our consolidated financial statements. Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): June 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 5,471,066 $ 4,983,231 $ 5,701,913 $ 5,984,228 Non-recourse mortgages, net (a) (b) (d) 3 328,820 324,326 368,524 369,841 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $25.6 million and $28.7 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of less than $0.1 million at both June 30, 2022 and December 31, 2021. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $26.0 million and $29.2 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $0.4 million and $0.8 million at June 30, 2022 and December 31, 2021, respectively. (c) We determined the estimated fair value of the Senior Unsecured Notes using observed market prices in an open market, which may experience limited trading volume. (d) We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. We estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility ( Note 10 ), but excluding finance receivables ( Note 5 ), had fair values that approximated their carrying values at both June 30, 2022 and December 31, 2021. Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. There have been no significant changes in our impairment policies from what was disclosed in the 2021 Annual Report. The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2022 2021 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Land, buildings and improvements and intangibles $ 10,270 $ 6,206 $ — $ — Equity method investments — — — — $ 6,206 $ — Six Months Ended June 30, 2022 2021 Fair Value Impairment Fair Value Impairment Impairment Charges Land, buildings and improvements and intangibles $ 24,497 $ 26,385 $ — $ — Equity method investments — — 8,175 6,830 $ 26,385 $ 6,830 Impairment charges, and their related triggering events and fair value measurements, recognized during the three and six months ended June 30, 2022 and 2021 were as follows: Land, Buildings and Improvements and Intangibles The impairment charges described below are reflected within Impairment charges in our consolidated statements of income. During the three and six months ended June 30, 2022, we recognized impairment charges totaling $6.2 million on two properties in order to reduce their carrying values to their estimated fair values, which approximated their estimated selling prices. During the six months ended June 30, 2022, we recognized an impairment charge of $10.9 million on a property in order to reduce its carrying value to its estimated fair value, which declined due to changes in expected cash flows related to the existing tenant’s lease expiration in 2023. The fair value measurement was determined by estimating discounted cash flows using two significant unobservable inputs, which were the cash flow discount rate (14.0%) and terminal capitalization rate (11.0%) In March 2022, we entered into a transaction to restructure certain leases with Pendragon PLC (a tenant at certain automotive dealerships in the United Kingdom). Under this restructuring, we extended the leases on 30 properties by 11 years (no change to rent) and entered into an agreement to dispose of 12 properties, with the tenant continuing to pay rent until the earlier of sale date or certain specified dates over the following 12 months. As a result, during the six months ended June 30, 2022, we recognized impairment charges totaling $9.3 million on six of these properties in order to reduce the carrying values of the properties to their estimated fair values. The fair value measurements for the properties were determined using a direct capitalization rate analysis; the capitalization rate for the various scenarios ranged from 4.75% to 10.00%. Equity Method Investments The other-than-temporary impairment charges described below are reflected within Earnings (losses) from equity method investments in our consolidated statements of income. During the six months ended June 30, 2021, we recognized an other-than-temporary impairment charge of $6.8 million on a jointly owned real estate investment to reduce the carrying value of our investment to its estimated fair value, which declined due to changes in expected cash flows related to the existing tenant’s lease expiration in 2028. The fair value measurement was determined by estimating discounted cash flows using three significant unobservable inputs, which were the cash flow discount rate (5.75%), residual discount rate (7.50%), and residual capitalization rate (6.75%). |
Risk Management and Use of Deri
Risk Management and Use of Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management and Use of Derivative Financial Instruments | Risk Management and Use of Derivative Financial Instruments Risk Management In the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Unsecured Credit Facility ( Note 10 ) and unhedged variable-rate non-recourse mortgage loans. Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, Senior Unsecured Notes, other securities, and the shares or limited partnership units we hold in the Managed Programs, due to changes in interest rates or other market factors. We own investments in North America, Europe, and Japan and are subject to risks associated with fluctuating foreign currency exchange rates. Derivative Financial Instruments There have been no significant changes in our derivative financial instrument policies from what was disclosed in the 2021 Annual Report. At both June 30, 2022 and December 31, 2021, no cash collateral had been posted nor received for any of our derivative positions. The following table sets forth certain information regarding our derivative instruments (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Derivative Assets Fair Value at Derivative Liabilities Fair Value at June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Foreign currency collars Other assets, net $ 41,827 $ 19,484 $ — $ — Interest rate swap Other assets, net 503 — — — Interest rate cap Other assets, net 5 1 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (1,311) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (908) 42,335 19,485 — (2,219) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 4,600 4,600 — — Foreign currency collars Other assets, net 1,126 — — — 5,726 4,600 — — Total derivatives $ 48,061 $ 24,085 $ — $ (2,219) The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency collars $ 18,456 $ (2,539) $ 23,654 $ 13,628 Interest rate swaps 575 235 1,356 3,648 Interest rate caps 2 2 5 4 Total $ 19,033 $ (2,302) $ 25,015 $ 17,280 Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 3,359 $ 614 $ 5,463 $ (567) Interest rate swaps and caps (b) Interest expense (122) (198) (286) (524) Total $ 3,237 $ 416 $ 5,177 $ (1,091) __________ (a) Excludes net gains of $0.9 million and $0.3 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2022 and 2021, respectively, and net gains of $2.3 million and $0.6 million for the six months ended June 30, 2022 and 2021, respectively. (b) Amount for the six months ended June 30, 2021 excludes other comprehensive income totaling $3.1 million that was released from the consolidated financial statements (along with the related liability balances) upon the termination of interest rate swaps in connection with certain prepayments of non-recourse mortgage loans during the period. Amounts reported in Other comprehensive (loss) income related to interest rate derivative contracts will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive (loss) income related to foreign currency derivative contracts will be reclassified to Non-operating income when the hedged foreign currency contracts are settled. As of June 30, 2022, we estimate that an additional $0.2 million and $18.1 million will be reclassified as Interest expense and Non-operating income, respectively, during the next 12 months. The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 2,575 $ (841) $ 3,783 $ 159 Interest rate swaps Interest expense 144 225 331 1,131 Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 842 — 1,126 — Stock warrants Other gains and (losses) — (500) — (500) Total $ 3,561 $ (1,116) $ 5,240 $ 790 See below for information on our purposes for entering into derivative instruments. Interest Rate Swaps and Caps We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we generally seek long-term debt financing on a fixed-rate basis. However, from time to time, we or our investment partners have obtained, and may in the future obtain, variable-rate, non-recourse mortgage loans and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements. The interest rate swaps and caps that our consolidated subsidiaries had outstanding at June 30, 2022 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Fair Value at (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 2 46,584 EUR $ 496 Interest rate swap 1 15,718 USD 7 Interest rate cap 1 10,608 EUR 5 $ 508 __________ (a) Fair value amounts are based on the exchange rate of the euro at June 30, 2022, as applicable. Foreign Currency Collars We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling, the Norwegian krone, and certain other currencies. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency collars. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency collars have maturities of 62 months or less. The following table presents the foreign currency collars that we had outstanding at June 30, 2022 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at June 30, 2022 Designated as Cash Flow Hedging Instruments Foreign currency collars 79 311,100 EUR $ 35,741 Foreign currency collars 85 55,120 GBP 6,086 Not Designated as Cash Flow Hedging Instruments Foreign currency collars 2 15,100 EUR 1,126 $ 42,953 Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of June 30, 2022. At June 30, 2022, our total credit exposure and the maximum exposure to any single counterparty was $43.8 million and $8.5 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 June 30, 2022, 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 $2.2 million at December 31, 2021, which included accrued interest and any nonperformance risk adjustments (there was no such liability balance at June 30, 2022). If we had breached any of these provisions at December 31, 2021, we could have been required to settle our obligations under these agreements at their aggregate termination value of $2.3 million. Net Investment Hedges Borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in Note 10 ) denominated in euro, British pounds sterling, or Japanese yen are designated as, and are effective as, economic hedges of our net investments in foreign entities. Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our borrowings under our euro-denominated senior notes and changes in the value of our euro, Japanese yen, and British pound sterling borrowings under our Senior Unsecured Credit Facility, related to changes in the spot rates, will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive (loss) income as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $236.4 million and $(44.5) million for the three months ended June 30, 2022 and 2021, respectively, and $313.3 million and $98.0 million for the six months ended June 30, 2022 and 2021, respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Unsecured Credit Facility On February 20, 2020, we entered into the Fourth Amended and Restated Credit Facility, which had capacity of approximately $2.1 billion, comprised of (i) a $1.8 billion unsecured revolving credit facility for our working capital needs, acquisitions, and other general corporate purposes (our “Unsecured Revolving Credit Facility”), (ii) a £150.0 million term loan (our “Term Loan”), and (iii) a €96.5 million delayed draw term loan (our “Delayed Draw Term Loan”). We refer to our Term Loan and Delayed Draw Term Loan collectively as the “Unsecured Term Loans” and the entire facility collectively as our “Senior Unsecured Credit Facility.” The Senior Unsecured Credit Facility includes the ability to borrow in certain currencies other than U.S. dollars and has a maturity date of February 20, 2025. The aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility may be increased up to an amount not to exceed the U.S. dollar equivalent of $2.75 billion, subject to the conditions to increase set forth in our Credit Agreement, as described above. In April 2022, we entered into a Second Amendment to the Credit Agreement to increase the Term Loan to £270.0 million and the Delayed Draw Term Loan to €215.0 million, thereby increasing the total capacity of our Senior Unsecured Credit Facility to approximately $2.4 billion. There were no other changes to the terms of our Credit Agreement. We used the approximately $300 million of proceeds from this increase in the capacity of our Unsecured Term Loans to partially repay amounts outstanding under our Unsecured Revolving Credit Facility. At June 30, 2022, our Unsecured Revolving Credit Facility had available capacity of approximately $1.4 billion (net of amounts reserved for standby letters of credit totaling $0.6 million). We incur an annual facility fee of 0.20% of the total commitment on our Unsecured Revolving Credit Facility, which is included within Interest expense in our consolidated statements of income. The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Interest Rate at June 30, 2022 (a) Maturity Date at June 30, 2022 Principal Outstanding Balance at Senior Unsecured Credit Facility June 30, 2022 December 31, 2021 Unsecured Term Loans: Term Loan — borrowing in British pounds sterling (b) (c) (d) SONIA + 0.9826% 2/20/2025 $ 326,787 $ 202,183 Delayed Draw Term Loan — borrowing in euros (e) EURIBOR + 0.95% 2/20/2025 223,321 109,296 550,108 311,479 Unsecured Revolving Credit Facility: Borrowing in euros (e) EURIBOR + 0.85% 2/20/2025 248,769 205,001 Borrowing in U.S. dollars (f) LIBOR + 0.85% 2/20/2025 151,000 — Borrowing in Japanese yen (g) TIBOR + 0.85% 2/20/2025 17,686 20,935 Borrowing in British pounds sterling N/A 2/20/2025 — 184,660 417,455 410,596 $ 967,563 $ 722,075 __________ (a) The applicable interest rate at June 30, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) SONIA means Sterling Overnight Index Average. (c) Interest rate includes both a spread adjustment to the base rate and a credit spread. (d) Balance excludes unamortized discount of $1.8 million and $0.9 million at June 30, 2022 and December 31, 2021, respectively. (e) EURIBOR means Euro Interbank Offered Rate. (f) LIBOR means London Interbank Offered Rate. (g) TIBOR means Tokyo Interbank Offered Rate. Senior Unsecured Notes As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $5.5 billion at June 30, 2022 (the “Senior Unsecured Notes”). We redeemed the €500.0 million of 2.0% Senior Notes due 2023 in March 2021. In connection with this redemption, we paid a “make-whole” amount of $26.2 million (based on the exchange rate of the euro as of the date of redemption) and recognized a loss on extinguishment of $28.2 million, which is included within Other gains and (losses) on our consolidated statements of income for the six months ended June 30, 2021. Interest on the Senior Unsecured Notes is payable annually in arrears for our euro-denominated senior notes and semi-annually for U.S. dollar-denominated senior notes. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 20 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2022 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date June 30, 2022 December 31, 2021 4.6% Senior Notes due 2024 3/14/2014 $ 500,000 4.6 % 4/1/2024 $ 500,000 $ 500,000 2.25% Senior Notes due 2024 1/19/2017 € 500,000 2.25 % 7/19/2024 519,350 566,300 4.0% Senior Notes due 2025 1/26/2015 $ 450,000 4.0 % 2/1/2025 450,000 450,000 2.250% Senior Notes due 2026 10/9/2018 € 500,000 2.250 % 4/9/2026 519,350 566,300 4.25% Senior Notes due 2026 9/12/2016 $ 350,000 4.25 % 10/1/2026 350,000 350,000 2.125% Senior Notes due 2027 3/6/2018 € 500,000 2.125 % 4/15/2027 519,350 566,300 1.350% Senior Notes due 2028 9/19/2019 € 500,000 1.350 % 4/15/2028 519,350 566,300 3.850% Senior Notes due 2029 6/14/2019 $ 325,000 3.850 % 7/15/2029 325,000 325,000 0.950% Senior Notes due 2030 3/8/2021 € 525,000 0.950 % 6/1/2030 545,318 594,615 2.400% Senior Notes due 2031 10/14/2020 $ 500,000 2.400 % 2/1/2031 500,000 500,000 2.450% Senior Notes due 2032 10/15/2021 $ 350,000 2.450 % 2/1/2032 350,000 350,000 2.250% Senior Notes due 2033 2/25/2021 $ 425,000 2.250 % 4/1/2033 425,000 425,000 $ 5,522,718 $ 5,759,815 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $25.6 million and $28.7 million, and unamortized discount totaling $26.0 million and $29.2 million, at June 30, 2022 and December 31, 2021, respectively. Covenants The Credit Agreement, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. There have been no significant changes in our debt covenants from what was disclosed in the 2021 Annual Report. We were in compliance with all of these covenants at June 30, 2022. Non-Recourse Mortgages At June 30, 2022, the weighted-average interest rate for our total non-recourse mortgage notes payable was 3.8% (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.8% and 1.9%, respectively), with maturity dates ranging from August 2022 to September 2031. Repayments During the six months ended June 30, 2022, we (i) prepaid a non-recourse mortgage loan of $10.4 million and (ii) repaid a non-recourse mortgage loan at maturity with a principal balance of approximately $2.5 million. We recognized a net loss on extinguishment of debt of $1.1 million on these repayments, which is included within Other gains and (losses) on our consolidated statements of income. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 5.8%. During the six months ended June 30, 2021, we (i) prepaid non-recourse mortgage loans totaling $426.9 million, and (ii) repaid a non-recourse mortgage loan at maturity with a principal balance of approximately $3.0 million. We recognized an aggregate net loss on extinguishment of debt of $31.9 million on these repayments, primarily comprised of prepayment penalties totaling $31.8 million, which is included within Other gains and (losses) on our consolidated statements of income. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 5.1%. Foreign Currency Exchange Rate Impact During the six months ended June 30, 2022, the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $329.4 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2021 to June 30, 2022. Scheduled Debt Principal Payments Scheduled debt principal payments as of June 30, 2022 are as follows (in thousands): Years Ending December 31, Total 2022 (remainder) $ 30,717 2023 178,319 2024 1,056,815 2025 1,466,474 2026 901,421 Thereafter through 2033 3,185,790 Total principal payments 6,819,536 Unamortized discount, net (28,209) Unamortized deferred financing costs (25,699) Total $ 6,765,628 Certain amounts in the table above are based on the applicable foreign currency exchange rate at June 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesAt June 30, 2022, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations. |
Stock-Based Compensation and Eq
Stock-Based Compensation and Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stock-Based Compensation and Equity | Stock-Based Compensation and Equity Stock-Based Compensation We maintain several stock-based compensation plans, which are more fully described in the 2021 Annual Report. There have been no significant changes to the terms and conditions of any of our stock-based compensation plans or arrangements during the six months ended June 30, 2022. We recorded stock-based compensation expense of $9.8 million and $9.0 million during the three months ended June 30, 2022 and 2021, respectively, and $17.6 million and $14.4 million during the six months ended June 30, 2022 and 2021, respectively, which was included in Stock-based compensation expense in the consolidated financial statements. Restricted and Conditional Awards Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2022 and changes during the six months ended June 30, 2022 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Shares Weighted-Average Nonvested at January 1, 2022 306,994 $ 71.21 398,255 $ 86.86 Granted (a) 212,226 80.10 144,311 104.97 Vested (b) (136,412) 72.53 (165,615) 92.16 Forfeited (5,412) 76.54 — — Adjustment (c) — — 143,984 81.65 Nonvested at June 30, 2022 (d) 377,396 $ 75.65 520,935 $ 89.53 __________ (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 six months ended June 30, 2022, we used a risk-free interest rate of 1.2%, an expected volatility rate of 36.7%, and assumed a dividend yield of zero. (b) The grant date fair value of shares vested during the six months ended June 30, 2022 was $25.2 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At June 30, 2022 and December 31, 2021, we had an obligation to issue 1,181,947 and 1,104,020 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $57.0 million and $49.8 million, respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at June 30, 2022 to reflect the number of shares expected to be issued when the PSUs vest. (d) At June 30, 2022, total unrecognized compensation expense related to these awards was approximately $47.5 million, with an aggregate weighted-average remaining term of 2.2 years. Earnings Per Share The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income — basic and diluted $ 127,678 $ 120,245 $ 284,673 $ 171,879 Weighted-average shares outstanding — basic 194,019,451 180,099,370 192,971,256 178,379,654 Effect of dilutive securities 744,244 569,362 734,779 522,605 Weighted-average shares outstanding — diluted 194,763,695 180,668,732 193,706,035 178,902,259 For the three and six months ended June 30, 2022 and 2021, there were no potentially dilutive securities excluded from the computation of diluted earnings per share. ATM Program On May 2, 2022, we established a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $1.0 billion may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (our “ATM Forwards”). Effective as of that date, we terminated a prior ATM Program that was established on August 9, 2019. Our prior ATM Program is discussed in the 2021 Annual Report. The following table sets forth certain information regarding the issuance of shares of our common stock under our prior ATM Program during the periods presented (net proceeds in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares of common stock issued 491,068 2,205,509 2,740,295 4,225,624 Weighted-average price per share $ 81.70 $ 74.56 $ 80.79 $ 72.50 Net proceeds $ 39,101 $ 162,292 $ 218,095 $ 302,512 Forward Equity We expect to settle the ATM Forwards in full on or prior to the maturity date of each ATM Forward via physical delivery of the outstanding shares of common stock in exchange for cash proceeds. However, subject to certain exceptions, we may also elect to cash settle or net share settle all or any portion of our obligations under any ATM Forwards. The forward sale price that we will receive upon physical settlement of the ATM Forwards will be (i) subject to adjustment on a daily basis based on a floating interest rate factor equal to a specified daily rate less a spread (i.e., if the specified daily rate is less than the spread on any day, the interest rate factor will result in a daily reduction of the applicable forward sale price) and (ii) decreased based on amounts related to expected dividends on shares of our common stock during the term of the ATM Forwards. We determined that our ATM Forwards meet the criteria for equity classification and are therefore exempt from derivative accounting. We recorded the ATM Forwards at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification. In addition, we refer to our three forward equity offerings presented below as the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards (collectively, the “Equity Forwards”), which are discussed in the 2021 Annual Report. Our ATM Forwards are also presented below (gross offering proceeds at closing in thousands): Agreement Date (a) Shares Offered (b) Average Gross Offering Price Average Gross Offering Proceeds at Closing Outstanding Shares as of June 30, 2022 June 2020 Equity Forwards (c) 6/17/2020 5,462,500 $ 70.00 $ 382,375 — June 2021 Equity Forwards (d) 6/7/2021 6,037,500 75.30 454,624 — August 2021 Equity Forwards 8/9/2021 5,175,000 78.00 403,650 3,925,000 ATM Forwards (e) 5/2/2022 3,674,187 83.98 308,553 3,674,187 7,599,187 __________ (a) We expect to settle the Equity Forwards in full within 18 months of the respective agreement dates via physical delivery of the outstanding shares of common stock in exchange for cash proceeds, although we may elect cash settlement or net share settlement for all or a portion of our obligations under the Equity Forwards, subject to certain conditions. (b) Includes 712,500, 787,500, and 675,000 shares of common stock purchased by certain underwriters in connection with the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards, respectively, upon the exercise of 30-day options to purchase additional shares. (c) All remaining outstanding shares were settled during the three months ended June 30, 2021. (d) All remaining outstanding shares were settled during the three months ended December 31, 2021. (e) We sold shares under our ATM Forwards during the second quarter of 2022. We did not settle any of the shares sold and therefore did not receive any proceeds from such sales. The following table sets forth certain information regarding the settlement of our Equity Forwards during the periods presented (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares of common stock delivered — 4,523,209 — 4,523,209 Net proceeds $ — $ 309,864 $ — $ 309,864 Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 23,717 $ (265,857) $ — $ (242,140) Other comprehensive loss before reclassifications 23,213 (43,993) — (20,780) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (3,359) — — (3,359) Interest expense 122 — — 122 Total (3,237) — — (3,237) Net current period other comprehensive loss 19,976 (43,993) — (24,017) Ending balance $ 43,693 $ (309,850) $ — $ (266,157) Three Months Ended June 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 982 $ (234,871) $ — $ (233,889) Other comprehensive income before reclassifications (1,607) 5,973 — 4,366 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (614) — — (614) Interest expense 198 — — 198 Total (416) — — (416) Net current period other comprehensive income (2,023) 5,973 — 3,950 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ (1,062) $ (228,898) $ — $ (229,960) Six Months Ended June 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 16,347 $ (256,705) $ 18,688 $ (221,670) Other comprehensive loss before reclassifications 32,523 (53,145) — (20,622) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (5,463) — — (5,463) Interest expense 286 — — 286 Other gains and (losses) ( Note 8 ) — — (18,688) (18,688) Total (5,177) — (18,688) (23,865) Net current period other comprehensive loss 27,346 (53,145) (18,688) (44,487) Ending balance $ 43,693 $ (309,850) $ — $ (266,157) Six Months Ended June 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ (18,937) $ (220,969) $ — $ (239,906) Other comprehensive income before reclassifications 16,805 (7,929) — 8,876 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income 567 — — 567 Interest expense 524 — — 524 Total 1,091 — — 1,091 Net current period other comprehensive income 17,896 (7,929) — 9,967 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ (1,062) $ (228,898) $ — $ (229,960) See Note 9 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented. Dividends Declared During the second quarter of 2022, our Board declared a quarterly dividend of $1.059 per share, which was paid on July 15, 2022 to stockholders of record as of June 30, 2022. During the six months ended June 30, 2022, we declared dividends totaling $2.116 per share. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We elected to be treated as a REIT and believe that we have been organized and have operated in such a manner to maintain our qualification as a REIT for federal and state income tax purposes. As a REIT, we are generally not subject to corporate level federal income taxes on earnings distributed to our stockholders. Since inception, we have distributed at least 100% of our taxable income annually. Accordingly, we have not included any provisions for federal income taxes related to the REIT in the accompanying consolidated financial statements for the three and six months ended June 30, 2022 and 2021. 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 six months ended June 30, 2022 and 2021. |
Property Dispositions
Property Dispositions | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property Dispositions | Property Dispositions We have an active capital recycling program, with a goal of extending the average lease term through reinvestment, improving portfolio credit quality through dispositions and acquisitions of assets, increasing the asset criticality factor in our portfolio, and/or executing strategic dispositions of assets. We may decide to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. All property dispositions are recorded within our Real Estate segment and are also discussed in Note 4 . 2022 — During the three and six months ended June 30, 2022, we sold eight and 14 properties, respectively, for total proceeds, net of selling costs, of $88.4 million and $115.1 million, respectively, and recognized a net gain on these sales totaling $31.1 million and $42.4 million, respectively (inclusive of income taxes totaling less than $0.1 million for both the three and six months ended June 30, 2022, recognized upon sale). 2021 — During the three and six months ended June 30, 2021, we sold ten and 12 properties, respectively, for total proceeds, net of selling costs, of $85.0 million and $98.4 million, respectively, and recognized a net gain on these sales totaling $19.8 million and $29.2 million, respectively (inclusive of income taxes totaling $3.7 million and $3.8 million, respectively, recognized upon sale). |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting We evaluate our results from operations through our two major business segments: Real Estate and Investment Management. The following tables present a summary of comparative results and assets for these business segments (in thousands): Real Estate Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues Lease revenues $ 314,354 $ 289,064 $ 622,079 $ 573,729 Income from direct financing leases and loans receivable 17,778 17,422 36,157 35,164 Operating property revenues (a) 5,064 3,245 8,929 5,424 Lease termination income and other 2,591 5,059 16,713 6,644 339,787 314,790 683,878 620,961 Operating Expenses Depreciation and amortization 115,080 114,348 230,473 224,670 General and administrative 20,841 20,464 43,925 42,547 Reimbursable tenant costs 16,704 15,092 33,664 30,850 Property expenses, excluding reimbursable tenant costs 11,851 11,815 25,630 22,698 Stock-based compensation expense 9,758 9,048 17,591 14,429 Impairment charges 6,206 — 26,385 — Operating property expenses 3,191 2,049 5,978 3,960 Merger and other expenses 1,984 (2,599) (341) (3,090) 185,615 170,217 383,305 336,064 Other Income and Expenses Interest expense (46,417) (49,252) (92,470) (100,892) Gain on sale of real estate, net 31,119 19,840 42,367 29,212 Other gains and (losses) (20,155) 7,472 14,263 (34,717) Non-operating income 5,975 3,065 14,517 9,337 Earnings (losses) from equity method investments in real estate 4,529 (1,854) 3,742 (12,973) (24,949) (20,729) (17,581) (110,033) Income before income taxes 129,223 123,844 282,992 174,864 Provision for income taxes (5,955) (9,119) (12,868) (15,545) Net Income from Real Estate 123,268 114,725 270,124 159,319 Net income attributable to noncontrolling interests (40) (38) (38) (45) Net Income from Real Estate Attributable to W. P. Carey $ 123,228 $ 114,687 $ 270,086 $ 159,274 Investment Management Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues Asset management and other revenue $ 3,467 $ 3,966 $ 6,887 $ 7,920 Reimbursable costs from affiliates 1,143 968 2,070 2,009 4,610 4,934 8,957 9,929 Operating Expenses Reimbursable costs from affiliates 1,143 968 2,070 2,009 Merger and other expenses — — 3 15 1,143 968 2,073 2,024 Other Income and Expenses Earnings from equity method investments in the Managed Programs 2,872 1,698 8,431 3,084 Other gains and (losses) (1,591) 73 (264) 1,074 Non-operating (loss) income (1) — 3 84 1,280 1,771 8,170 4,242 Income before income taxes 4,747 5,737 15,054 12,147 (Provision for) benefit from income taxes (297) (179) (467) 458 Net Income from Investment Management Attributable to W. P. Carey $ 4,450 $ 5,558 $ 14,587 $ 12,605 Total Company Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 344,397 $ 319,724 $ 692,835 $ 630,890 Operating expenses 186,758 171,185 385,378 338,088 Other income and (expenses) (23,669) (18,958) (9,411) (105,791) Provision for income taxes (6,252) (9,298) (13,335) (15,087) Net income attributable to noncontrolling interests (40) (38) (38) (45) Net income attributable to W. P. Carey $ 127,678 $ 120,245 $ 284,673 $ 171,879 Total Assets at June 30, 2022 December 31, 2021 Real Estate $ 15,314,097 $ 15,344,703 Investment Management 140,132 135,927 Total Company $ 15,454,229 $ 15,480,630 __________ (a) Operating property revenues from our hotels include $3.3 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $2.5 million for the six months ended June 30, 2022 and 2021, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect higher occupancy as the hotel’s business recovered from the COVID-19 pandemic). |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisitions and Completed Construction Project In July 2022, we completed two acquisitions totaling approximately $281.9 million. They are as follows: • $262.0 million for a portfolio of 20 industrial facilities in the United States; and • $19.9 million for a portfolio of five retail facilities in Spain. In addition, in July 2022, we completed a build-to-suit project for $25.7 million. Amounts are based on the applicable exchange rate on the date of transaction. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationOur interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not necessarily include all information and footnotes necessary for a complete statement of our consolidated financial position, results of operations, and cash flows in accordance with generally accepted accounting principles in the United States (“GAAP”). |
Basis of Consolidation | Basis of ConsolidationOur consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. |
Variable Interest Entity | When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. There have been no significant changes in our VIE policies from what was disclosed in the 2021 Annual Report. At both June 30, 2022 and December 31, 2021, we considered 14 entities to be VIEs, of which we consolidated six, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): June 30, 2022 December 31, 2021 Land, buildings and improvements $ 429,623 $ 426,831 Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 44,165 42,884 Above-market rent intangible assets 26,720 26,720 Accumulated depreciation and amortization (162,739) (154,413) Total assets 499,806 500,884 Non-recourse mortgages, net $ 1,279 $ 1,485 Below-market rent and other intangible liabilities, net 19,711 20,568 Total liabilities 44,233 46,302 At both June 30, 2022 and December 31, 2021, our eight unconsolidated VIEs included our interests in (i) six unconsolidated real estate investments, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. As of June 30, 2022, and December 31, 2021, the net carrying amount of our investments in these entities was $612.9 million and $581.3 million, respectively, and our maximum exposure to loss in these entities was limited to our investments. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. We currently present Income from direct financing leases and loans receivable on its own line item in the consolidated statements of income. Previously, income from direct financing leases was included within Lease revenues and income from loans receivable was included within Lease termination income and other in the consolidated statements of income. |
Lease Revenue | Lease revenue (including straight-line lease revenue) is only recognized when deemed probable of collection. Collectibility is assessed for each tenant receivable using various criteria including credit ratings ( Note 5 ), guarantees, past collection issues, and the current economic and business environment affecting the tenant. If collectibility of the contractual rent stream is not deemed probable, revenue will only be recognized upon receipt of cash from the tenant. |
Intangible Assets and Liabilities and Goodwill | We have recorded lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from less than one year to 48 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements.Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization. |
Fair Value Measurement | The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of variable interest entities | The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): June 30, 2022 December 31, 2021 Land, buildings and improvements $ 429,623 $ 426,831 Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 44,165 42,884 Above-market rent intangible assets 26,720 26,720 Accumulated depreciation and amortization (162,739) (154,413) Total assets 499,806 500,884 Non-recourse mortgages, net $ 1,279 $ 1,485 Below-market rent and other intangible liabilities, net 19,711 20,568 Total liabilities 44,233 46,302 |
Reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): June 30, 2022 December 31, 2021 Cash and cash equivalents $ 103,590 $ 165,427 Restricted cash (a) 96,903 52,523 Total cash and cash equivalents and restricted cash $ 200,493 $ 217,950 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Reconciliation of restrictions on cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands): June 30, 2022 December 31, 2021 Cash and cash equivalents $ 103,590 $ 165,427 Restricted cash (a) 96,903 52,523 Total cash and cash equivalents and restricted cash $ 200,493 $ 217,950 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The following tables present a summary of revenue earned, reimbursable costs, and distributions of Available Cash received/accrued from the Managed Programs and WLT for the periods indicated, included in the consolidated financial statements (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Asset management revenue (a) (b) $ 3,467 $ 3,966 $ 6,887 $ 7,920 Distributions of Available Cash (c) 2,814 1,787 5,401 3,326 Reimbursable costs from affiliates (a) 1,143 968 2,070 2,009 Interest income on deferred acquisition fees and loans to affiliates (d) 75 30 108 64 $ 7,499 $ 6,751 $ 14,466 $ 13,319 Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 CPA:18 – Global $ 6,937 $ 5,611 $ 13,388 $ 10,970 CESH 562 1,044 1,078 2,145 WLT (reimbursed transition services) — 96 — 204 $ 7,499 $ 6,751 $ 14,466 $ 13,319 __________ (a) Amounts represent revenues from contracts under ASC 606. (b) Included within Asset management and other revenue in the consolidated statements of income. (c) Included within Earnings (losses) from equity method investments in the consolidated statements of income. (d) Included within Non-operating income in the consolidated statements of income. |
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): June 30, 2022 December 31, 2021 Short-term loans to affiliates, including accrued interest $ 16,108 $ — Asset management fees receivable 1,767 494 Reimbursable costs 873 974 Accounts receivable 171 336 Current acquisition fees receivable 18 19 Deferred acquisition fees receivable, including accrued interest — 3 $ 18,937 $ 1,826 |
Schedule of related party fees | The following table presents a summary of our asset management fee arrangements with the remaining Managed Programs: Managed Program Rate Payable Description CPA:18 – Global 0.5% – 1.5% In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable in shares of its Class A common stock for 2021 through February 28, 2022; payable in cash effective as of March 1, 2022, in light of the Proposed Merger Rate depends on the type of investment and is based on the average market or average equity value, as applicable CESH 1.0% In cash Based on gross assets at fair value |
Land, Buildings and Improveme_2
Land, Buildings and Improvements and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of land, building and improvements | Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Land $ 2,136,338 $ 2,151,327 Buildings and improvements 9,743,900 9,525,858 Real estate under construction 62,732 114,549 Less: Accumulated depreciation (1,530,006) (1,448,020) $ 10,412,964 $ 10,343,714 The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 77,122 Buildings and improvements 463,233 Intangible assets and liabilities: In-place lease (weighted-average expected life of 22.8 years) 74,979 Below-market rent (expected life of 6.8 years) (3,379) Right-of-use assets: Prepaid rent (a) 12,287 $ 624,242 __________ (a) Represents prepaid rent for a land lease. Therefore, there is no future obligation on the land lease asset and no corresponding operating lease liability. This asset is included in In-place lease intangible assets and other in the consolidated balance sheets. June 30, 2022 December 31, 2021 Land $ 10,452 $ 10,452 Buildings and improvements 73,249 73,221 Less: Accumulated depreciation (18,051) (16,750) $ 65,650 $ 66,923 |
Schedule of real estate acquired | During the six months ended June 30, 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Capitalized Costs Pleasant Prairie, Wisconsin 1 1/10/2022 Industrial $ 20,024 Various, Spain (a) 26 2/3/2022 Funeral Home 146,364 Various, Denmark (a) (b) 8 2/11/2022 Retail 33,976 Laval, Canada (a) 1 2/18/2022 Industrial 21,459 Chattanooga, Tennessee (c) 1 3/4/2022 Warehouse 43,198 Various, United States (4 properties), Canada (1 property, and Mexico (1 property) 6 4/27/2022; 5/9/2022 Industrial 80,595 Various, United States 6 5/16/2022 Industrial; Warehouse 110,381 Various, Denmark (a) (b) 10 6/1/2022; 6/30/2022 Retail 42,635 Medina, Ohio 1 6/17/2022 Industrial 28,913 Bree, Belgium (a) 1 6/30/2022 Warehouse 96,697 61 $ 624,242 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) We also entered into purchase agreements to acquire 13 additional retail facilities leased to this tenant totaling $49.3 million (based on the exchange rate of the Danish krone at June 30, 2022), which is expected to be completed in 2022. (c) We also committed to fund an additional $22.8 million for an expansion at the facility, which is expected to be completed in the second quarter of 2023. |
Schedule of real estate under construction | During the six months ended June 30, 2022, we completed the following construction projects (dollars in thousands): Property Location(s) Primary Transaction Type Number of Properties Date of Completion Property Type Total Capitalized Costs (a) Hurricane, Utah Expansion 1 3/8/2022 Warehouse $ 20,517 Breda, Netherlands (a) Expansion 1 3/18/2022 Warehouse 4,721 Bowling Green, Kentucky Renovation 1 4/26/2022 Warehouse 72,971 3 $ 98,209 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. |
Schedule of operating lease income | Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lease income — fixed $ 281,269 $ 261,704 $ 557,410 $ 519,031 Lease income — variable (a) 33,085 27,360 64,669 54,698 Total operating lease income $ 314,354 $ 289,064 $ 622,079 $ 573,729 __________ (a) Includes (i) rent increases based on changes in the U.S. Consumer Price Index and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services. |
Disclosure of long lived assets held-for-sale | Below is a summary of our properties held for sale (in thousands): June 30, 2022 December 31, 2021 Land, buildings and improvements $ — $ 10,628 Accumulated depreciation and amortization — (2,359) Assets held for sale, net $ — $ 8,269 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of capital leases net investment In direct financing leases | Finance Receivables Net investments in direct financing leases and loans receivable are summarized as follows (in thousands): Maturity Date June 30, 2022 December 31, 2021 Net investments in direct financing leases (a) 2022 – 2036 $ 530,318 $ 572,205 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 232,001 217,229 Secured loans receivable (c) 2022 – 2025 24,143 24,143 $ 786,462 $ 813,577 __________ (a) Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases . (b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Maturity dates reflect the current lease maturity dates. (c) Amounts are net of allowance for credit losses of $12.6 million as of both June 30, 2022 and December 31, 2021. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): June 30, 2022 December 31, 2021 Lease payments receivable $ 354,530 $ 414,002 Unguaranteed residual value 504,806 545,896 859,336 959,898 Less: unearned income (317,396) (370,353) Less: allowance for credit losses (a) (11,622) (17,340) $ 530,318 $ 572,205 __________ (a) During the six months ended June 30, 2022 and 2021, we recorded a net reversal of allowance for credit losses of $1.0 million and $6.2 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions and improved credit quality for certain tenants, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the six months ended June 30, 2022, we reduced the allowance for credit losses balance by $4.7 million, in connection with the reclassification of a property from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases, as described below. |
Sales-Leaseback | During the six months ended June 30, 2022, we entered into the following sale-leaseback, which was deemed to be a loan receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands): Property Location(s) Number of Properties Date of Acquisition Property Type Total Investment Various, Belgium (a) 5 6/22/2022 Retail $ 19,795 5 $ 19,795 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. |
Schedule of finance receivables credit quality indicators | A summary of our finance receivables by internal credit quality rating, excluding our allowance for credit losses, is as follows (dollars in thousands): Number of Tenants / Obligors at Carrying Value at Internal Credit Quality Indicator June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 1 – 3 18 17 $ 698,244 $ 703,280 4 8 9 112,433 140,230 5 — — — — $ 810,677 $ 843,510 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule of intangible assets And goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): June 30, 2022 December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets Internal-use software development costs $ 19,661 $ (18,923) $ 738 $ 19,553 $ (18,682) $ 871 Trade name 3,975 (3,975) — 3,975 (3,581) 394 23,636 (22,898) 738 23,528 (22,263) 1,265 Lease Intangibles: In-place lease 2,274,546 (983,304) 1,291,242 2,279,905 (934,663) 1,345,242 Above-market rent 822,470 (511,785) 310,685 843,410 (489,861) 353,549 3,097,016 (1,495,089) 1,601,927 3,123,315 (1,424,524) 1,698,791 Goodwill Goodwill 891,464 — 891,464 901,529 — 901,529 Total intangible assets $ 4,012,116 $ (1,517,987) $ 2,494,129 $ 4,048,372 $ (1,446,787) $ 2,601,585 Finite-Lived Intangible Liabilities Below-market rent $ (272,239) $ 114,184 $ (158,055) $ (272,483) $ 105,908 $ (166,575) Indefinite-Lived Intangible Liabilities Below-market purchase option (16,711) — (16,711) (16,711) — (16,711) Total intangible liabilities $ (288,950) $ 114,184 $ (174,766) $ (289,194) $ 105,908 $ (183,286) |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | 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 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 CPA:18 – Global (a) 5.718 % 5.578 % $ 60,989 $ 60,836 CPA:18 – Global operating partnership 0.034 % 0.034 % 209 209 CESH (b) 2.430 % 2.430 % 2,488 3,689 $ 63,686 $ 64,734 __________ (a) During the six months ended June 30, 2022, we received certain asset management revenue from CPA:18 – Global in shares of its common stock, which increased our ownership percentage in CPA:18 – Global. Effective as of March 1, 2022, we began receiving asset management revenue from CPA:18 – Global in cash in light of the Proposed Merger ( Note 1 ). (b) Investment is accounted for at fair value. The following table sets forth our ownership interests in our equity method investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands): Carrying Value at Lessee/Fund/Description Co-owner Ownership Interest June 30, 2022 December 31, 2021 Las Vegas Retail Complex (a) Third Party N/A $ 141,341 $ 104,114 Johnson Self Storage Third Party 90% 66,552 67,573 Kesko Senukai (b) Third Party 70% 33,416 41,955 Harmon Retail Corner (c) Third Party 15% 24,725 24,435 State Farm Mutual Automobile Insurance Co. CPA:18 – Global 50% 6,411 7,129 Apply Sørco AS (d) CPA:18 – Global 49% 3,977 5,909 Fortenova Grupa d.d. (b) CPA:18 – Global 20% 2,146 2,936 Bank Pekao (b) (e) CPA:18 – Global 50% 2,106 4,460 WLT (f) WLT N/A — 33,392 $ 280,674 $ 291,903 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of June 30, 2022) for a retail complex in Las Vegas, Nevada. Through June 30, 2022, we funded $141.0 million, including $37.3 million during the six months ended June 30, 2022. Interest income from this investment was $3.4 million and $0.3 million for the six months ended June 30, 2022 and 2021, respectively, which was recognized within Earnings (losses) from equity method investments in our consolidated statements of income. (b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro. (c) This investment is reported using the hypothetical liquidation at book value (“HLBV”) model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (e) We recognized our $4.6 million proportionate share of an impairment charge recorded on this investment during the six months ended June 30, 2022, which was reflected within Earnings (losses) from equity method investments in our consolidated statements of income. The estimated fair value of the investment is based on the estimated selling price of the international office facility owned by the investment, and the fair value of the non-recourse mortgage encumbering the property also approximates the fair value of the property. (f) We own 12,208,243 shares of common stock of WLT, which we accounted for as an equity method investment in real estate as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022 ( Note 8 ). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of other financial instruments in carrying values and fair values | Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands): June 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 $ 5,471,066 $ 4,983,231 $ 5,701,913 $ 5,984,228 Non-recourse mortgages, net (a) (b) (d) 3 328,820 324,326 368,524 369,841 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $25.6 million and $28.7 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of less than $0.1 million at both June 30, 2022 and December 31, 2021. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $26.0 million and $29.2 million at June 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $0.4 million and $0.8 million at June 30, 2022 and December 31, 2021, respectively. (c) We determined the estimated fair value of the Senior Unsecured Notes using observed market prices in an open market, which may experience limited trading volume. (d) We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. |
Schedule of fair value impairment charges using unobservable inputs nonrecurring basis | The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands): Three Months Ended June 30, 2022 2021 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Land, buildings and improvements and intangibles $ 10,270 $ 6,206 $ — $ — Equity method investments — — — — $ 6,206 $ — Six Months Ended June 30, 2022 2021 Fair Value Impairment Fair Value Impairment Impairment Charges Land, buildings and improvements and intangibles $ 24,497 $ 26,385 $ — $ — Equity method investments — — 8,175 6,830 $ 26,385 $ 6,830 |
Risk Management and Use of De_2
Risk Management and Use of Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The following table sets forth certain information regarding our derivative instruments (in thousands): Derivatives Designated as Hedging Instruments Balance Sheet Location Derivative Assets Fair Value at Derivative Liabilities Fair Value at June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Foreign currency collars Other assets, net $ 41,827 $ 19,484 $ — $ — Interest rate swap Other assets, net 503 — — — Interest rate cap Other assets, net 5 1 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (1,311) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (908) 42,335 19,485 — (2,219) Derivatives Not Designated as Hedging Instruments Stock warrants Other assets, net 4,600 4,600 — — Foreign currency collars Other assets, net 1,126 — — — 5,726 4,600 — — Total derivatives $ 48,061 $ 24,085 $ — $ (2,219) |
Schedule of derivative instruments, effect on other comprehensive income (loss) | The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive Income (Loss) (a) Three Months Ended June 30, Six Months Ended June 30, Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency collars $ 18,456 $ (2,539) $ 23,654 $ 13,628 Interest rate swaps 575 235 1,356 3,648 Interest rate caps 2 2 5 4 Total $ 19,033 $ (2,302) $ 25,015 $ 17,280 Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 3,359 $ 614 $ 5,463 $ (567) Interest rate swaps and caps (b) Interest expense (122) (198) (286) (524) Total $ 3,237 $ 416 $ 5,177 $ (1,091) __________ (a) Excludes net gains of $0.9 million and $0.3 million recognized on unconsolidated jointly owned investments for the three months ended June 30, 2022 and 2021, respectively, and net gains of $2.3 million and $0.6 million for the six months ended June 30, 2022 and 2021, respectively. (b) Amount for the six months ended June 30, 2021 excludes other comprehensive income totaling $3.1 million that was released from the consolidated financial statements (along with the related liability balances) upon the termination of interest rate swaps in connection with certain prepayments of non-recourse mortgage loans during the period. |
Schedule of derivative instruments, gain (loss) in statement of financial performance | The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands): Amount of Gain (Loss) on Derivatives Recognized in Income Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 2,575 $ (841) $ 3,783 $ 159 Interest rate swaps Interest expense 144 225 331 1,131 Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 842 — 1,126 — Stock warrants Other gains and (losses) — (500) — (500) Total $ 3,561 $ (1,116) $ 5,240 $ 790 |
Schedule of derivative instruments | The interest rate swaps and caps that our consolidated subsidiaries had outstanding at June 30, 2022 are summarized as follows (currency in thousands): Interest Rate Derivatives Number of Instruments Notional Fair Value at (a) Designated as Cash Flow Hedging Instruments Interest rate swaps 2 46,584 EUR $ 496 Interest rate swap 1 15,718 USD 7 Interest rate cap 1 10,608 EUR 5 $ 508 __________ (a) Fair value amounts are based on the exchange rate of the euro at June 30, 2022, as applicable. The following table presents the foreign currency collars that we had outstanding at June 30, 2022 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at June 30, 2022 Designated as Cash Flow Hedging Instruments Foreign currency collars 79 311,100 EUR $ 35,741 Foreign currency collars 85 55,120 GBP 6,086 Not Designated as Cash Flow Hedging Instruments Foreign currency collars 2 15,100 EUR 1,126 $ 42,953 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of senior unsecured credit facilities | The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands): Interest Rate at June 30, 2022 (a) Maturity Date at June 30, 2022 Principal Outstanding Balance at Senior Unsecured Credit Facility June 30, 2022 December 31, 2021 Unsecured Term Loans: Term Loan — borrowing in British pounds sterling (b) (c) (d) SONIA + 0.9826% 2/20/2025 $ 326,787 $ 202,183 Delayed Draw Term Loan — borrowing in euros (e) EURIBOR + 0.95% 2/20/2025 223,321 109,296 550,108 311,479 Unsecured Revolving Credit Facility: Borrowing in euros (e) EURIBOR + 0.85% 2/20/2025 248,769 205,001 Borrowing in U.S. dollars (f) LIBOR + 0.85% 2/20/2025 151,000 — Borrowing in Japanese yen (g) TIBOR + 0.85% 2/20/2025 17,686 20,935 Borrowing in British pounds sterling N/A 2/20/2025 — 184,660 417,455 410,596 $ 967,563 $ 722,075 __________ (a) The applicable interest rate at June 30, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2 . (b) SONIA means Sterling Overnight Index Average. (c) Interest rate includes both a spread adjustment to the base rate and a credit spread. (d) Balance excludes unamortized discount of $1.8 million and $0.9 million at June 30, 2022 and December 31, 2021, respectively. (e) EURIBOR means Euro Interbank Offered Rate. (f) LIBOR means London Interbank Offered Rate. (g) TIBOR means Tokyo Interbank Offered Rate. |
Schedule of senior unsecured notes | The following table presents a summary of our Senior Unsecured Notes outstanding at June 30, 2022 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date June 30, 2022 December 31, 2021 4.6% Senior Notes due 2024 3/14/2014 $ 500,000 4.6 % 4/1/2024 $ 500,000 $ 500,000 2.25% Senior Notes due 2024 1/19/2017 € 500,000 2.25 % 7/19/2024 519,350 566,300 4.0% Senior Notes due 2025 1/26/2015 $ 450,000 4.0 % 2/1/2025 450,000 450,000 2.250% Senior Notes due 2026 10/9/2018 € 500,000 2.250 % 4/9/2026 519,350 566,300 4.25% Senior Notes due 2026 9/12/2016 $ 350,000 4.25 % 10/1/2026 350,000 350,000 2.125% Senior Notes due 2027 3/6/2018 € 500,000 2.125 % 4/15/2027 519,350 566,300 1.350% Senior Notes due 2028 9/19/2019 € 500,000 1.350 % 4/15/2028 519,350 566,300 3.850% Senior Notes due 2029 6/14/2019 $ 325,000 3.850 % 7/15/2029 325,000 325,000 0.950% Senior Notes due 2030 3/8/2021 € 525,000 0.950 % 6/1/2030 545,318 594,615 2.400% Senior Notes due 2031 10/14/2020 $ 500,000 2.400 % 2/1/2031 500,000 500,000 2.450% Senior Notes due 2032 10/15/2021 $ 350,000 2.450 % 2/1/2032 350,000 350,000 2.250% Senior Notes due 2033 2/25/2021 $ 425,000 2.250 % 4/1/2033 425,000 425,000 $ 5,522,718 $ 5,759,815 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $25.6 million and $28.7 million, and unamortized discount totaling $26.0 million and $29.2 million, at June 30, 2022 and December 31, 2021, respectively. |
Scheduled debt principal payments | Scheduled debt principal payments as of June 30, 2022 are as follows (in thousands): Years Ending December 31, Total 2022 (remainder) $ 30,717 2023 178,319 2024 1,056,815 2025 1,466,474 2026 901,421 Thereafter through 2033 3,185,790 Total principal payments 6,819,536 Unamortized discount, net (28,209) Unamortized deferred financing costs (25,699) Total $ 6,765,628 |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of restricted and conditional award activity | Nonvested restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) at June 30, 2022 and changes during the six months ended June 30, 2022 were as follows: RSA and RSU Awards PSU Awards Shares Weighted-Average Shares Weighted-Average Nonvested at January 1, 2022 306,994 $ 71.21 398,255 $ 86.86 Granted (a) 212,226 80.10 144,311 104.97 Vested (b) (136,412) 72.53 (165,615) 92.16 Forfeited (5,412) 76.54 — — Adjustment (c) — — 143,984 81.65 Nonvested at June 30, 2022 (d) 377,396 $ 75.65 520,935 $ 89.53 __________ (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 six months ended June 30, 2022, we used a risk-free interest rate of 1.2%, an expected volatility rate of 36.7%, and assumed a dividend yield of zero. (b) The grant date fair value of shares vested during the six months ended June 30, 2022 was $25.2 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At June 30, 2022 and December 31, 2021, we had an obligation to issue 1,181,947 and 1,104,020 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $57.0 million and $49.8 million, respectively. (c) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments at June 30, 2022 to reflect the number of shares expected to be issued when the PSUs vest. (d) At June 30, 2022, total unrecognized compensation expense related to these awards was approximately $47.5 million, with an aggregate weighted-average remaining term of 2.2 years. |
Schedule of earnings per share reconciliation | The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income — basic and diluted $ 127,678 $ 120,245 $ 284,673 $ 171,879 Weighted-average shares outstanding — basic 194,019,451 180,099,370 192,971,256 178,379,654 Effect of dilutive securities 744,244 569,362 734,779 522,605 Weighted-average shares outstanding — diluted 194,763,695 180,668,732 193,706,035 178,902,259 |
Schedule of issuance of shares | The following table sets forth certain information regarding the issuance of shares of our common stock under our prior ATM Program during the periods presented (net proceeds in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares of common stock issued 491,068 2,205,509 2,740,295 4,225,624 Weighted-average price per share $ 81.70 $ 74.56 $ 80.79 $ 72.50 Net proceeds $ 39,101 $ 162,292 $ 218,095 $ 302,512 |
Schedule of Stockholders Equity | In addition, we refer to our three forward equity offerings presented below as the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards (collectively, the “Equity Forwards”), which are discussed in the 2021 Annual Report. Our ATM Forwards are also presented below (gross offering proceeds at closing in thousands): Agreement Date (a) Shares Offered (b) Average Gross Offering Price Average Gross Offering Proceeds at Closing Outstanding Shares as of June 30, 2022 June 2020 Equity Forwards (c) 6/17/2020 5,462,500 $ 70.00 $ 382,375 — June 2021 Equity Forwards (d) 6/7/2021 6,037,500 75.30 454,624 — August 2021 Equity Forwards 8/9/2021 5,175,000 78.00 403,650 3,925,000 ATM Forwards (e) 5/2/2022 3,674,187 83.98 308,553 3,674,187 7,599,187 __________ (a) We expect to settle the Equity Forwards in full within 18 months of the respective agreement dates via physical delivery of the outstanding shares of common stock in exchange for cash proceeds, although we may elect cash settlement or net share settlement for all or a portion of our obligations under the Equity Forwards, subject to certain conditions. (b) Includes 712,500, 787,500, and 675,000 shares of common stock purchased by certain underwriters in connection with the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards, respectively, upon the exercise of 30-day options to purchase additional shares. (c) All remaining outstanding shares were settled during the three months ended June 30, 2021. (d) All remaining outstanding shares were settled during the three months ended December 31, 2021. (e) We sold shares under our ATM Forwards during the second quarter of 2022. We did not settle any of the shares sold and therefore did not receive any proceeds from such sales. |
Reclassification out of accumulated other comprehensive loss | The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended June 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 23,717 $ (265,857) $ — $ (242,140) Other comprehensive loss before reclassifications 23,213 (43,993) — (20,780) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (3,359) — — (3,359) Interest expense 122 — — 122 Total (3,237) — — (3,237) Net current period other comprehensive loss 19,976 (43,993) — (24,017) Ending balance $ 43,693 $ (309,850) $ — $ (266,157) Three Months Ended June 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 982 $ (234,871) $ — $ (233,889) Other comprehensive income before reclassifications (1,607) 5,973 — 4,366 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (614) — — (614) Interest expense 198 — — 198 Total (416) — — (416) Net current period other comprehensive income (2,023) 5,973 — 3,950 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ (1,062) $ (228,898) $ — $ (229,960) Six Months Ended June 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 16,347 $ (256,705) $ 18,688 $ (221,670) Other comprehensive loss before reclassifications 32,523 (53,145) — (20,622) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (5,463) — — (5,463) Interest expense 286 — — 286 Other gains and (losses) ( Note 8 ) — — (18,688) (18,688) Total (5,177) — (18,688) (23,865) Net current period other comprehensive loss 27,346 (53,145) (18,688) (44,487) Ending balance $ 43,693 $ (309,850) $ — $ (266,157) Six Months Ended June 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ (18,937) $ (220,969) $ — $ (239,906) Other comprehensive income before reclassifications 16,805 (7,929) — 8,876 Amounts reclassified from accumulated other comprehensive loss to: Non-operating income 567 — — 567 Interest expense 524 — — 524 Total 1,091 — — 1,091 Net current period other comprehensive income 17,896 (7,929) — 9,967 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ (1,062) $ (228,898) $ — $ (229,960) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of operating profit (loss) from segments to consolidated | The following tables present a summary of comparative results and assets for these business segments (in thousands): Real Estate Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues Lease revenues $ 314,354 $ 289,064 $ 622,079 $ 573,729 Income from direct financing leases and loans receivable 17,778 17,422 36,157 35,164 Operating property revenues (a) 5,064 3,245 8,929 5,424 Lease termination income and other 2,591 5,059 16,713 6,644 339,787 314,790 683,878 620,961 Operating Expenses Depreciation and amortization 115,080 114,348 230,473 224,670 General and administrative 20,841 20,464 43,925 42,547 Reimbursable tenant costs 16,704 15,092 33,664 30,850 Property expenses, excluding reimbursable tenant costs 11,851 11,815 25,630 22,698 Stock-based compensation expense 9,758 9,048 17,591 14,429 Impairment charges 6,206 — 26,385 — Operating property expenses 3,191 2,049 5,978 3,960 Merger and other expenses 1,984 (2,599) (341) (3,090) 185,615 170,217 383,305 336,064 Other Income and Expenses Interest expense (46,417) (49,252) (92,470) (100,892) Gain on sale of real estate, net 31,119 19,840 42,367 29,212 Other gains and (losses) (20,155) 7,472 14,263 (34,717) Non-operating income 5,975 3,065 14,517 9,337 Earnings (losses) from equity method investments in real estate 4,529 (1,854) 3,742 (12,973) (24,949) (20,729) (17,581) (110,033) Income before income taxes 129,223 123,844 282,992 174,864 Provision for income taxes (5,955) (9,119) (12,868) (15,545) Net Income from Real Estate 123,268 114,725 270,124 159,319 Net income attributable to noncontrolling interests (40) (38) (38) (45) Net Income from Real Estate Attributable to W. P. Carey $ 123,228 $ 114,687 $ 270,086 $ 159,274 Investment Management Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues Asset management and other revenue $ 3,467 $ 3,966 $ 6,887 $ 7,920 Reimbursable costs from affiliates 1,143 968 2,070 2,009 4,610 4,934 8,957 9,929 Operating Expenses Reimbursable costs from affiliates 1,143 968 2,070 2,009 Merger and other expenses — — 3 15 1,143 968 2,073 2,024 Other Income and Expenses Earnings from equity method investments in the Managed Programs 2,872 1,698 8,431 3,084 Other gains and (losses) (1,591) 73 (264) 1,074 Non-operating (loss) income (1) — 3 84 1,280 1,771 8,170 4,242 Income before income taxes 4,747 5,737 15,054 12,147 (Provision for) benefit from income taxes (297) (179) (467) 458 Net Income from Investment Management Attributable to W. P. Carey $ 4,450 $ 5,558 $ 14,587 $ 12,605 Total Company Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenues $ 344,397 $ 319,724 $ 692,835 $ 630,890 Operating expenses 186,758 171,185 385,378 338,088 Other income and (expenses) (23,669) (18,958) (9,411) (105,791) Provision for income taxes (6,252) (9,298) (13,335) (15,087) Net income attributable to noncontrolling interests (40) (38) (38) (45) Net income attributable to W. P. Carey $ 127,678 $ 120,245 $ 284,673 $ 171,879 __________ (a) Operating property revenues from our hotels include $3.3 million and $1.7 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $2.5 million for the six months ended June 30, 2022 and 2021, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect higher occupancy as the hotel’s business recovered from the COVID-19 pandemic). |
Reconciliation of assets from segment to consolidated | Total Assets at June 30, 2022 December 31, 2021 Real Estate $ 15,314,097 $ 15,344,703 Investment Management 140,132 135,927 Total Company $ 15,454,229 $ 15,480,630 |
Business and Organization - Nar
Business and Organization - Narratives (Details) ft² in Millions | 6 Months Ended | |
Jun. 30, 2022 ft² property tenant | Feb. 27, 2022 $ / shares | |
CPA:18 | ||
Additional disclosures | ||
Business acquisition (share price) | $ / shares | $ 3 | |
CPA:18 | Common Stock | ||
Additional disclosures | ||
Share conversion rate (usd per share) | $ / shares | $ 0.0978 | |
Real Estate | ||
Additional disclosures | ||
Number of real estate properties (property) | 1,357 | |
Square footage of real estate properties | ft² | 161 | |
Number of tenants (tenant) | tenant | 356 | |
Lease term (years) | 11 years | |
Occupancy rate | 99.10% | |
Real Estate | Operating properties | ||
Additional disclosures | ||
Number of real estate properties (property) | 20 | |
Square footage of real estate properties | ft² | 1.4 | |
Real Estate | Self-storage | ||
Additional disclosures | ||
Number of real estate properties (property) | 19 | |
Real Estate | Hotel | ||
Additional disclosures | ||
Number of real estate properties (property) | 1 | |
Investment Management | Affiliated Entity | Managed Programs | ||
Additional disclosures | ||
Number of tenants (tenant) | tenant | 47 | |
Occupancy rate | 99.30% | |
Investment Management | Affiliated Entity | Managed Programs | Built-to-suit | ||
Additional disclosures | ||
Number of real estate properties (property) | 2 | |
Investment Management | Operating properties | Affiliated Entity | Managed Programs | ||
Additional disclosures | ||
Number of real estate properties (property) | 66 | |
Square footage of real estate properties | ft² | 5.1 | |
Investment Management | Net- lease properties | Affiliated Entity | Managed Programs | ||
Additional disclosures | ||
Number of real estate properties (property) | 46 | |
Square footage of real estate properties | ft² | 9.7 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) vie variable_interest_entity | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) vie variable_interest_entity | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) variable_interest_entity vie | |
Basis of Consolidation | |||||
Variable interest entities, count | variable_interest_entity | 14 | 14 | 14 | ||
Variable interest entities consolidated, count | vie | 6 | 6 | 6 | ||
Variable interest entities unconsolidated, count | variable_interest_entity | 8 | 8 | 8 | ||
Equity method investments in real estate | $ 344,360 | $ 344,360 | $ 356,637 | ||
Real Estate | |||||
Basis of Consolidation | |||||
Operating property revenues | 5,064 | $ 3,245 | 8,929 | $ 5,424 | |
Real Estate | Hotel | |||||
Basis of Consolidation | |||||
Operating property revenues | 3,300 | $ 1,700 | 5,400 | $ 2,500 | |
Variable Interest Entity | |||||
Basis of Consolidation | |||||
Equity method investments in real estate | $ 612,900 | $ 612,900 | $ 581,300 | ||
Managed Programs | |||||
Basis of Consolidation | |||||
Variable interest entities unconsolidated, count | variable_interest_entity | 2 | 2 | 2 | ||
Real Estate | |||||
Basis of Consolidation | |||||
Variable interest entities unconsolidated, count | variable_interest_entity | 6 | 6 | 6 | ||
Equity method investments in real estate | $ 280,674 | $ 280,674 | $ 291,903 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Land, buildings and improvements | $ 12,026,671 | $ 11,875,407 | |
Net investments in direct financing leases and loans receivable | 786,462 | 813,577 | |
In-place lease intangible assets and other | 2,384,032 | 2,386,000 | |
Above-market rent intangible assets | 822,470 | 843,410 | |
Accumulated depreciation and amortization | (3,043,146) | (2,889,294) | |
Total assets | [1] | 15,454,229 | 15,480,630 |
Liabilities | |||
Non-recourse mortgages, net | 328,820 | 368,524 | |
Below-market rent and other intangible liabilities, net | 174,766 | 183,286 | |
Total liabilities | [1] | 7,812,767 | 7,897,179 |
Variable Interest Entity | |||
Assets | |||
Land, buildings and improvements | 429,623 | 426,831 | |
Net investments in direct financing leases and loans receivable | 144,103 | 144,103 | |
In-place lease intangible assets and other | 44,165 | 42,884 | |
Above-market rent intangible assets | 26,720 | 26,720 | |
Accumulated depreciation and amortization | (162,739) | (154,413) | |
Total assets | 499,806 | 500,884 | |
Liabilities | |||
Non-recourse mortgages, net | 1,279 | 1,485 | |
Below-market rent and other intangible liabilities, net | 19,711 | 20,568 | |
Total liabilities | $ 44,233 | $ 46,302 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
Basis of Presentation - Cash an
Basis of Presentation - Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 103,590 | $ 165,427 | ||
Restricted cash | 96,903 | 52,523 | ||
Total cash and cash equivalents and restricted cash | $ 200,493 | $ 217,950 | $ 218,203 | $ 311,779 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Narratives (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | |
Advisory Agreements with REIT | ||
Percentage of available cash distribution to advisor | 10% | |
Other Transactions with Affiliates | ||
Due from affiliates | $ | $ 18,937,000 | $ 1,826,000 |
Jointly owned investments | investment | 9 | |
Jointly owned investment, accounted for under the equity method investments | investment | 8 | |
CPA:18 – Global | Maximum | Affiliated Entity | ||
Advisory Agreements with REIT | ||
Personnel and overhead reimbursement (percentage) | 1% | 1% |
Aggregate cost of investment | CPA:18 – Global | Affiliated Entity | ||
Advisory Agreements with REIT | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 4.50% | |
Aggregate cost of investment | CESH | Affiliated Entity | ||
Advisory Agreements with REIT | ||
Percentage of acquisition fees earned (structuring revenue percentage) | 2% | |
Affiliated Entity | CPA:18 – Global | ||
Other Transactions with Affiliates | ||
Due from affiliates | $ | $ 16,000,000 | $ 0 |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Related Party Income (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction | ||||
Distributions of Available Cash | $ 2,814 | $ 1,787 | $ 5,401 | $ 3,326 |
Interest income on deferred acquisition fees and loans to affiliates | 75 | 30 | 108 | 64 |
Revenue from related parties | 7,499 | 6,751 | 14,466 | 13,319 |
Asset management and other revenue | ||||
Related Party Transaction | ||||
Operating property revenues | 3,467 | 3,966 | 6,887 | 7,920 |
Reimbursable costs from affiliates | ||||
Related Party Transaction | ||||
Operating property revenues | $ 1,143 | $ 968 | $ 2,070 | $ 2,009 |
Agreements and Transactions w_5
Agreements and Transactions with Related Parties - Related Party Income, by Program (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction | ||||
Revenue from related parties | $ 7,499 | $ 6,751 | $ 14,466 | $ 13,319 |
CPA:18 – Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 6,937 | 5,611 | 13,388 | 10,970 |
CESH | ||||
Related Party Transaction | ||||
Revenue from related parties | 562 | 1,044 | 1,078 | 2,145 |
WLT (reimbursed transition services) | ||||
Related Party Transaction | ||||
Revenue from related parties | $ 0 | $ 96 | $ 0 | $ 204 |
Agreements and Transactions w_6
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Due from affiliates | ||
Short-term loans to affiliates, including accrued interest | $ 16,108 | $ 0 |
Asset management fees receivable | 1,767 | 494 |
Reimbursable costs | 873 | 974 |
Accounts receivable | 171 | 336 |
Current acquisition fees receivable | 18 | 19 |
Deferred acquisition fees receivable, including accrued interest | 0 | 3 |
Due from affiliates | $ 18,937 | $ 1,826 |
Agreements and Transactions w_7
Agreements and Transactions with Related Parties - Asset Management, Structuring, Other Revenue and Personnel, Overhead Costs (Details) - Affiliated Entity | 6 Months Ended |
Jun. 30, 2022 | |
CPA:18 – Global | Average equity value | Minimum | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 0.50% |
CPA:18 – Global | Average equity value | Maximum | Class A | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1.50% |
CESH | Gross assets fair value | |
Related Party Transaction | |
Asset management fees earned (percentage) | 1% |
Land, Buildings and Improveme_3
Land, Buildings and Improvements and Assets Held for Sale - Assets Subject To Operating Leases (Details) - Operating real estate - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,530,006) | $ (1,448,020) |
Net property subject to operating lease | 10,412,964 | 10,343,714 |
Land | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | 2,136,338 | 2,151,327 |
Buildings and improvements | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | 9,743,900 | 9,525,858 |
Real estate under construction | ||
Real Estate Investment Property At Cost | ||
Gross property subject to operating lease | $ 62,732 | $ 114,549 |
Land, Buildings and Improveme_4
Land, Buildings and Improvements and Assets Held for Sale - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) property $ / € | Jun. 30, 2021 USD ($) property | Jun. 30, 2022 USD ($) property $ / € | Jun. 30, 2021 USD ($) property | Dec. 31, 2021 USD ($) property $ / € | |
Real Estate Properties | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (43,993) | $ 5,973 | $ (53,145) | $ (7,929) | |
Net investments in direct financing leases and loans receivable | 530,318 | 530,318 | $ 572,205 | ||
Land, buildings and improvements | 12,026,671 | 12,026,671 | $ 11,875,407 | ||
Investments in real estate | |||||
Capitalized construction cost | $ 46,400 | ||||
Construction projects completed (property) | property | 5 | 6 | |||
Unfunded commitment | 34,000 | $ 34,000 | $ 55,300 | ||
Capitalized interest | 400 | 600 | 1,100 | 1,300 | |
Lease termination income | 8,200 | ||||
Lease payments | 1,400 | 4,400 | 6,100 | 5,300 | |
Assets held for sale, net | $ 0 | $ 0 | $ 8,269 | ||
EUR | |||||
Real Estate Properties | |||||
Decrease in exchange rate | (8.30%) | ||||
Foreign currency exchange rate | $ / € | 1.0387 | 1.0387 | 1.1326 | ||
Real Estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 1,357 | 1,357 | |||
Investments in real estate | |||||
Other income | $ 600 | $ 400 | $ 1,200 | $ 900 | |
Properties disposed of by sale | |||||
Investments in real estate | |||||
Number of properties sold (property) | property | 8 | 10 | 14 | 12 | |
Asset held for sale, not in discontinued operations | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 2 | ||||
Investments in real estate | |||||
Assets held for sale, net | $ 8,300 | ||||
Land, buildings and improvements | Properties disposed of by sale | |||||
Investments in real estate | |||||
Number of properties sold (property) | property | 12 | ||||
Decrease in carrying value of real estate | $ 58,800 | ||||
Construction in progress | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 3 | 3 | |||
Investments in real estate | |||||
Funding commitment | $ 2,100 | $ 2,100 | |||
Operating Lease | |||||
Real Estate Properties | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (328,800) | ||||
Number of real estate properties (property) | property | 61 | 61 | |||
Depreciation | $ 73,000 | $ 69,400 | $ 145,000 | $ 136,400 | |
Operating real estate | |||||
Real Estate Properties | |||||
Depreciation | $ 700 | $ 700 | $ 1,400 | $ 1,400 | |
Self-storage | Operating real estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 10 | 10 | 10 | ||
Hotel | Operating real estate | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 1 | 1 | 1 | ||
Adjustments | |||||
Real Estate Properties | |||||
Net investments in direct financing leases and loans receivable | $ (17,300) | $ (17,300) | |||
Land, buildings and improvements | $ 17,300 | $ 17,300 | |||
Direct financing lease | Adjustments | |||||
Real Estate Properties | |||||
Number of real estate properties (property) | property | 1 | 1 |
Land, Buildings and Improveme_5
Land, Buildings and Improvements and Assets Held for Sale - Acquisition of Real Estate (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2022 USD ($) property | Jun. 17, 2022 USD ($) property | May 16, 2022 USD ($) property | May 09, 2022 USD ($) property | Mar. 04, 2022 USD ($) property | Feb. 18, 2022 USD ($) property | Feb. 11, 2022 USD ($) property | Feb. 03, 2022 USD ($) property | Jan. 10, 2022 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | |
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | $ 614,397 | $ 837,003 | ||||||||||
Operating Lease | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 61 | 61 | 61 | |||||||||
Total Capitalized Costs | $ 624,242 | |||||||||||
Operating Lease | Land | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | 77,122 | |||||||||||
Operating Lease | Buildings and improvements | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | 463,233 | |||||||||||
Operating Lease | Below-market rent | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | $ 3,379 | |||||||||||
Finite lived intangible assets useful life (in years) | 6 years 9 months 18 days | |||||||||||
Operating Lease | Prepaid rent (a) | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | $ 12,287 | |||||||||||
Operating Lease | In-place lease | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Total Capitalized Costs | $ 74,979 | |||||||||||
Finite lived intangible assets useful life (in years) | 22 years 9 months 18 days | |||||||||||
Operating Lease | Pleasant Prairie, Wisconsin | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Total Capitalized Costs | $ 20,024 | |||||||||||
Operating Lease | Various, Spain | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 26 | |||||||||||
Total Capitalized Costs | $ 146,364 | |||||||||||
Operating Lease | Various, Denmark | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 10 | 8 | 10 | 10 | ||||||||
Total Capitalized Costs | $ 33,976 | $ 42,635 | ||||||||||
Operating Lease | Additional properties acquired , Denmark | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 13 | 13 | 13 | |||||||||
Total Capitalized Costs | $ 49,300 | |||||||||||
Operating Lease | Laval, Canada | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Total Capitalized Costs | $ 21,459 | |||||||||||
Operating Lease | Chattanooga, Tennessee | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Total Capitalized Costs | $ 43,198 | |||||||||||
Funding commitment | $ 22,800 | $ 22,800 | $ 22,800 | |||||||||
Operating Lease | Various, United States (4 properties), Canada (1 property, and Mexico (1 property) | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 6 | |||||||||||
Total Capitalized Costs | $ 80,595 | |||||||||||
Operating Lease | Various Industrials Properties In The United States | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 4 | |||||||||||
Operating Lease | Industrials Property In Canada | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Operating Lease | Industrial Property In Mexico | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Operating Lease | Various, United States | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 6 | |||||||||||
Total Capitalized Costs | $ 110,381 | |||||||||||
Operating Lease | Medina, Ohio | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | |||||||||||
Total Capitalized Costs | $ 28,913 | |||||||||||
Operating Lease | Bree, Belgium | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Number of properties (property) | property | 1 | 1 | 1 | |||||||||
Total Capitalized Costs | $ 96,697 |
Land, Buildings and Improveme_6
Land, Buildings and Improvements and Assets Held for Sale - Real Estate Under Construction (Details) - Construction in progress $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) property | |
Property, Plant and Equipment | |
Number of properties (property) | property | 3 |
Total Capitalized Costs | $ | $ 98,209 |
Hurricane, Utah | |
Property, Plant and Equipment | |
Number of properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 20,517 |
Breda, Netherlands | |
Property, Plant and Equipment | |
Number of properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 4,721 |
Bowling Green, Kentucky | |
Property, Plant and Equipment | |
Number of properties (property) | property | 1 |
Total Capitalized Costs | $ | $ 72,971 |
Land, Buildings and Improveme_7
Land, Buildings and Improvements and Assets Held for Sale - Operating Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Lease, Lease Income [Abstract] | ||||
Lease income — fixed | $ 281,269 | $ 261,704 | $ 557,410 | $ 519,031 |
Lease income – variable | 33,085 | 27,360 | 64,669 | 54,698 |
Total operating lease income | $ 314,354 | $ 289,064 | $ 622,079 | $ 573,729 |
Land, Buildings and Improveme_8
Land, Buildings and Improvements and Assets Held for Sale - Operating Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate Properties | ||
Less: Accumulated depreciation | $ (3,043,146) | $ (2,889,294) |
Investments in real estate | 16,019,635 | 15,918,394 |
Land, Buildings and Improvements — Operating Leases | ||
Real Estate Properties | ||
Land | 10,452 | 10,452 |
Buildings and improvements | 73,249 | 73,221 |
Less: Accumulated depreciation | (18,051) | (16,750) |
Investments in real estate | $ 65,650 | $ 66,923 |
Land, Buildings and Improveme_9
Land, Buildings and Improvements and Assets Held for Sale - Summary of Assets Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land, buildings and improvements | $ 0 | $ 10,628 |
Accumulated depreciation and amortization | 0 | (2,359) |
Assets held for sale, net | $ 0 | $ 8,269 |
Finance Receivables - Direct Fi
Finance Receivables - Direct Financing Leases and Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Net investments in direct financing leases | $ 530,318 | $ 572,205 |
Sale-leaseback transactions accounted for as loans receivable | 232,001 | 217,229 |
Secured loans receivable | 24,143 | 24,143 |
Net investment In lease and loans receivable | $ 786,462 | $ 813,577 |
Finance Receivables - Net Inves
Finance Receivables - Net Investments in Direct Financing Lease (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Lease payments receivable | $ 354,530 | $ 414,002 |
Unguaranteed residual value | 504,806 | 545,896 |
Net investment in finance leases, excluding unearned income | 859,336 | 959,898 |
Less: unearned income | (317,396) | (370,353) |
Less: allowance for credit losses | (11,622) | (17,340) |
Net receivables (difference between undiscounted cash flows and discounted cash flows) | $ 530,318 | $ 572,205 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) property loan | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) property loan | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | |
Finance Receivables | |||||
Allowance for credit loss | $ (980) | $ (6,249) | |||
Credit to allowance for direct finance lease related to reclassification | 4,700 | ||||
Interest income from direct financing leases | $ 13,300 | $ 16,200 | 27,200 | 33,300 | |
Net investments in direct financing leases and loans receivable | 530,318 | 530,318 | $ 572,205 | ||
Land, buildings and improvements | 12,026,671 | 12,026,671 | $ 11,875,407 | ||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (43,993) | 5,973 | $ (53,145) | (7,929) | |
Number of loans receivable (loans) | loan | 2 | 2 | 2 | ||
Loans receivable, allowance for credit losses | $ 12,600 | $ 12,600 | $ 12,600 | ||
Interest receivable | 3,700 | 3,700 | |||
Interest income from loans receivables | 4,500 | $ 1,200 | 8,900 | 1,800 | |
Adjustments | |||||
Finance Receivables | |||||
Net investments in direct financing leases and loans receivable | (17,300) | (17,300) | |||
Land, buildings and improvements | $ 17,300 | 17,300 | |||
Direct financing lease | |||||
Finance Receivables | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (31,000) | ||||
Direct financing lease | Adjustments | |||||
Finance Receivables | |||||
Number of real estate properties (property) | property | 1 | 1 | |||
Net investments in direct financing lease | |||||
Finance Receivables | |||||
Allowance for credit loss | $ (1,000) | $ (6,200) |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Jun. 30, 2022 USD ($) tenant | Dec. 31, 2021 USD ($) tenant |
Credit Quality Of Finance Receivables | ||
Net investments in direct financing leases | $ 810,677 | $ 843,510 |
Internally Assigned Grade1-3 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants (tenant) | tenant | 18 | 17 |
Net investments in direct financing leases | $ 698,244 | $ 703,280 |
Internally Assigned Grade 4 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants (tenant) | tenant | 8 | 9 |
Net investments in direct financing leases | $ 112,433 | $ 140,230 |
Internally Assigned Grade 5 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants (tenant) | tenant | 0 | 0 |
Net investments in direct financing leases | $ 0 | $ 0 |
Finance Receivables - Sales-lea
Finance Receivables - Sales-leaseback (Details) - Various Belgium $ in Thousands | Jun. 30, 2022 USD ($) property |
Accounts, Notes, Loans and Financing Receivable | |
Number of real estate properties (property) | property | 5 |
Total Investment | $ | $ 19,795 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net | |||||
Goodwill | $ 891,464 | $ 891,464 | $ 901,529 | ||
Increase (decrease) in value of balance sheet item due to foreign currency translation | (43,993) | $ 5,973 | (53,145) | $ (7,929) | |
Amortization of intangible assets | 50,800 | $ 57,600 | 103,500 | $ 111,600 | |
Real Estate | |||||
Finite-Lived Intangible Assets, Net | |||||
Foreign currency translation adjustments | (10,100) | ||||
Goodwill | 862,100 | 862,100 | $ 872,200 | ||
Investment Management | |||||
Finite-Lived Intangible Assets, Net | |||||
Goodwill | $ 29,300 | 29,300 | |||
Net intangible assets | |||||
Finite-Lived Intangible Assets, Net | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (53,400) | ||||
Minimum | |||||
Finite-Lived Intangible Assets, Net | |||||
Finite lived intangible assets useful life (in years) | 1 year | ||||
Maximum | |||||
Finite-Lived Intangible Assets, Net | |||||
Finite lived intangible assets useful life (in years) | 48 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortizable Intangible Assets | ||
Accumulated Amortization | $ (1,517,987) | $ (1,446,787) |
Indefinite Lived Intangible Assets Including Goodwill | ||
Total intangible assets, gross | 4,012,116 | 4,048,372 |
Total intangible assets, net | 2,494,129 | 2,601,585 |
Amortizable Intangible Liabilities | ||
Less: accumulated amortization | 114,184 | 105,908 |
Indefinite Lived Intangible Liabilities | ||
Total intangible liabilities, gross | (288,950) | (289,194) |
Total intangible liabilities, net | (174,766) | (183,286) |
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 | (272,239) | (272,483) |
Less: accumulated amortization | 114,184 | 105,908 |
Net amortizable intangible liabilities | (158,055) | (166,575) |
Goodwill | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 891,464 | 901,529 |
Contracts including internal software development costs | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 23,636 | 23,528 |
Accumulated Amortization | (22,898) | (22,263) |
Net Carrying Amount | 738 | 1,265 |
Internal-use software development costs | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 19,661 | 19,553 |
Accumulated Amortization | (18,923) | (18,682) |
Net Carrying Amount | 738 | 871 |
Trade name | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 3,975 | 3,975 |
Accumulated Amortization | (3,975) | (3,581) |
Net Carrying Amount | 0 | 394 |
Lease intangibles | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 3,097,016 | 3,123,315 |
Accumulated Amortization | (1,495,089) | (1,424,524) |
Net Carrying Amount | 1,601,927 | 1,698,791 |
In-place lease | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 2,274,546 | 2,279,905 |
Accumulated Amortization | (983,304) | (934,663) |
Net Carrying Amount | 1,291,242 | 1,345,242 |
Above-market rent | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 822,470 | 843,410 |
Accumulated Amortization | (511,785) | (489,861) |
Net Carrying Amount | $ 310,685 | $ 353,549 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Investments in Managed Programs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments in Programs | ||
Equity method investments in real estate | $ 344,360 | $ 356,637 |
CPA:18 – Global | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 5.718% | 5.578% |
Equity method investments in real estate | $ 60,989 | $ 60,836 |
CPA:18 – Global operating partnership | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 0.034% | 0.034% |
Equity method investments in real estate | $ 209 | $ 209 |
CESH | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 2.43% | 2.43% |
Equity method investments in real estate | $ 2,488 | $ 3,689 |
Affiliated Entity | Managed Programs | ||
Investments in Programs | ||
Equity method investments in real estate | $ 63,686 | $ 64,734 |
Equity Investments in the Manag
Equity Investments in the Managed Programs and Real Estate - Narratives (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jun. 10, 2021 | |
Equity investments | ||||
Distributions of earnings from equity method investments | $ 15,907 | $ 3,730 | ||
Equity method investments | ||||
Equity investments | ||||
Investment income | 3,400 | 300 | ||
Real Estate | Unconsolidated Real Estate Investment | ||||
Equity investments | ||||
Distributions of earnings from equity method investments | 18,400 | 11,100 | ||
Aggregate unamortized basis difference on equity investments | 7,600 | $ 7,900 | ||
Affiliated Entity | CPA:18 – Global | ||||
Equity investments | ||||
Distributions of earnings from equity method investments | 1,100 | 900 | ||
Affiliated Entity | CPA:18 – Global operating partnership | ||||
Equity investments | ||||
Distributions of earnings from equity method investments | 5,400 | 3,300 | ||
Affiliated Entity | CESH | ||||
Equity investments | ||||
Distributions of earnings from equity method investments | 1,200 | $ 100 | ||
Affiliated Entity | Managed Programs | ||||
Equity investments | ||||
Aggregate unamortized basis difference on equity investments | 22,000 | $ 23,300 | ||
Affiliated Entity | Common Stock | WLT (reimbursed transition services) | ||||
Equity investments | ||||
Shares owned (shares) | 12,208,243 | |||
Affiliated Entity | Las Vegas Retail Complex | Real Estate | Third Party | Construction Commitment | ||||
Equity investments | ||||
Funding commitment | $ 261,900 | |||
Cumulative payments for other commitments | $ 141,000 | |||
Payments to settle other commitments | 37,300 | |||
Affiliated Entity | Bank Pekao S.A. | Real Estate | CPA:18 – Global | ||||
Equity investments | ||||
Recognized impairment costs | $ 4,600 |
Equity Method Investments - Equ
Equity Method Investments - Equity Method Investments Excluding the Managed Programs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments in Programs | ||
Equity method investments in real estate | $ 344,360 | $ 356,637 |
Real Estate | ||
Investments in Programs | ||
Equity method investments in real estate | 280,674 | 291,903 |
Real Estate | Third Party | Affiliated Entity | Las Vegas Retail Complex | ||
Investments in Programs | ||
Equity method investments in real estate | $ 141,341 | 104,114 |
Real Estate | Third Party | Affiliated Entity | Johnson Self Storage | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 90% | |
Equity method investments in real estate | $ 66,552 | 67,573 |
Real Estate | Third Party | Affiliated Entity | Kesko Senukai | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 70% | |
Equity method investments in real estate | $ 33,416 | 41,955 |
Real Estate | Third Party | Affiliated Entity | Harmon Retail Corner | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 15% | |
Equity method investments in real estate | $ 24,725 | 24,435 |
Real Estate | WLT (reimbursed transition services) | Affiliated Entity | WLT (reimbursed transition services) | ||
Investments in Programs | ||
Equity method investments in real estate | $ 0 | 33,392 |
Real Estate | CPA:18 – Global | Affiliated Entity | State Farm Mutual Automobile Insurance Co. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 50% | |
Equity method investments in real estate | $ 6,411 | 7,129 |
Real Estate | CPA:18 – Global | Affiliated Entity | Apply Sorco AS | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 49% | |
Equity method investments in real estate | $ 3,977 | 5,909 |
Real Estate | CPA:18 – Global | Affiliated Entity | Fortenova Grupa d.d. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 20% | |
Equity method investments in real estate | $ 2,146 | 2,936 |
Real Estate | CPA:18 – Global | Affiliated Entity | Bank Pekao S.A. | ||
Investments in Programs | ||
Equity method investment, ownership percentage | 50% | |
Equity method investments in real estate | $ 2,106 | $ 4,460 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2022 property | Jan. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) property shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) property shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) property shares | |
Fair Value Inputs, Assets | |||||||
Equity method investments in real estate | $ 344,360 | $ 344,360 | $ 356,637 | ||||
Preferred stock, shares issued (shares) | shares | 0 | 0 | 0 | ||||
Reclassification of unrealized gain on investments to net income | $ 0 | $ 0 | $ (18,688) | $ 0 | |||
Unamortized deferred financing costs | 25,699 | 25,699 | |||||
Unamortized discount | 28,209 | 28,209 | |||||
Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Number of real estate properties (property) | property | 2 | ||||||
Land, buildings and improvements and intangibles | Pendragon PLC | |||||||
Fair Value Inputs, Assets | |||||||
Number of real estate properties (property) | property | 30 | ||||||
Lease extension term | 11 years | ||||||
Land, buildings and improvements and intangibles | Pendragon PLC | Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Number of real estate properties (property) | property | 12 | ||||||
GCIF | |||||||
Fair Value Inputs, Assets | |||||||
Proceeds from liquidation distribution | 1,100 | ||||||
Equity method investments in real estate | 3,300 | 3,300 | $ 4,300 | ||||
Level 3 | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | 6,206 | 0 | 26,385 | 6,830 | |||
Level 3 | Carrying Value | Non-recourse mortgage, net | |||||||
Fair Value Inputs, Assets | |||||||
Unamortized deferred financing costs | 100 | 100 | 100 | ||||
Unamortized discount | 400 | 400 | 800 | ||||
Level 3 | Land, buildings and improvements and intangibles | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 6,206 | 0 | 26,385 | 0 | |||
Level 3 | Land, buildings and improvements and intangibles | Fair Value, Measurements, Nonrecurring | Pendragon PLC | Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 9,300 | ||||||
Number of real estate properties (property) | property | 6 | 6 | |||||
Level 3 | Land, buildings and improvements and intangibles | Fair Value, Measurements, Nonrecurring | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 10,900 | ||||||
Level 3 | Land, buildings and improvements and intangibles | Fair Value, Measurements, Nonrecurring | Two Properties | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 6,200 | $ 6,200 | |||||
Number of real estate properties (property) | property | 2 | 2 | |||||
Level 3 | Land, buildings and improvements and intangibles | Cashflow discount rate | Fair Value, Measurements, Nonrecurring | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.140 | 0.140 | |||||
Level 3 | Land, buildings and improvements and intangibles | Terminal capitalization rate | Fair Value, Measurements, Nonrecurring | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.110 | 0.110 | |||||
Level 3 | Land, buildings and improvements and intangibles | Terminal capitalization rate | Fair Value, Measurements, Nonrecurring | Minimum | Pendragon PLC | Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.0475 | 0.0475 | |||||
Level 3 | Land, buildings and improvements and intangibles | Terminal capitalization rate | Fair Value, Measurements, Nonrecurring | Maximum | Pendragon PLC | Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.1000 | 0.1000 | |||||
Level 3 | Equity method investments | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 0 | $ 0 | $ 0 | 6,830 | |||
Other-than-temporary impairment charges | $ 6,800 | ||||||
Level 3 | Equity method investments | Cashflow discount rate | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Measurement input | 0.0575 | 0.0575 | |||||
Level 3 | Equity method investments | Residual discount rate | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Measurement input | 0.0750 | 0.0750 | |||||
Level 3 | Equity method investments | Residual capitalization rate | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Measurement input | 0.0675 | 0.0675 | |||||
Level 2 | Carrying Value | Unsecured senior notes | |||||||
Fair Value Inputs, Assets | |||||||
Unamortized deferred financing costs | 25,600 | 25,600 | 28,700 | ||||
Unamortized discount | 26,000 | 26,000 | 29,200 | ||||
Lineage Logistics | Level 3 | |||||||
Fair Value Inputs, Assets | |||||||
Reclassification of unrealized gain on investments to net income | $ 23,400 | ||||||
Dividend income | 4,300 | $ 6,400 | |||||
Fair value of investments | 366,300 | 366,300 | 366,300 | ||||
WLT (reimbursed transition services) | |||||||
Fair Value Inputs, Assets | |||||||
Preferred stock, shares issued (shares) | shares | 1,300,000 | ||||||
WLT (reimbursed transition services) | Affiliated Entity | |||||||
Fair Value Inputs, Assets | |||||||
Proceeds from Sale of Equity Securities, FV-NI | $ 65,000 | ||||||
Preferred stock liquidation preference (usd per share) | $ / shares | $ 50 | ||||||
Reclassification of unrealized gain on investments to net income | 18,700 | ||||||
WLT (reimbursed transition services) | Level 3 | |||||||
Fair Value Inputs, Assets | |||||||
Reclassification of unrealized gain on investments to net income | 43,400 | ||||||
Dividend income | 900 | ||||||
Equity securities | 33,400 | ||||||
Preferred Stock | WLT (reimbursed transition services) | Level 3 | |||||||
Fair Value Inputs, Assets | |||||||
Equity securities | $ 76,800 | $ 76,800 | $ 65,000 | ||||
Common Stock | Affiliated Entity | WLT (reimbursed transition services) | |||||||
Fair Value Inputs, Assets | |||||||
Shares owned (shares) | shares | 12,208,243 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Level 2 | Carrying Value | Senior Unsecured Notes, net | ||
Liabilities: | ||
Debt instrument, fair value | $ 5,471,066 | $ 5,701,913 |
Level 2 | Fair Value | Senior Unsecured Notes, net | ||
Liabilities: | ||
Debt instrument, fair value | 4,983,231 | 5,984,228 |
Level 3 | Carrying Value | Non-recourse mortgage, net | ||
Liabilities: | ||
Debt instrument, fair value | 328,820 | 368,524 |
Level 3 | Fair Value | Non-recourse mortgage, net | ||
Liabilities: | ||
Debt instrument, fair value | $ 324,326 | $ 369,841 |
Fair Value Measurements - Impai
Fair Value Measurements - Impairment of Assets Measured on a Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Impairment Charges | $ 6,206 | $ 0 | $ 26,385 | $ 6,830 |
Land, buildings and improvements and intangibles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 10,270 | 0 | 24,497 | 0 |
Impairment Charges | 6,206 | 0 | 26,385 | 0 |
Equity method investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 0 | 0 | 0 | 8,175 |
Impairment Charges | $ 0 | $ 0 | $ 0 | $ 6,830 |
Risk Management and Use of De_3
Risk Management and Use of Derivative Financial Instruments - Narratives (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Summary of Derivative Instruments | |||||
Net collateral posted for derivatives | $ 0 | $ 0 | $ 0 | ||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | 19,033,000 | $ (2,302,000) | $ 25,015,000 | $ 17,280,000 | |
Derivative, remaining maturity | 62 months | ||||
Total credit exposure on derivatives | 43,800,000 | $ 43,800,000 | |||
Derivatives, net liability position | 0 | 0 | 2,200,000 | ||
Aggregate termination value for immediate settlement | $ 2,300,000 | ||||
Other comprehensive income foreign currency gain (loss) | 236,400,000 | (44,500,000) | 313,300,000 | 98,000,000 | |
Individual Counterparty | |||||
Summary of Derivative Instruments | |||||
Total credit exposure on derivatives | 8,500,000 | 8,500,000 | |||
Interest expense | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | (200,000) | ||||
Other gains | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | (18,100,000) | ||||
Designated as Cash Flow Hedging Instruments | |||||
Summary of Derivative Instruments | |||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | 3,237,000 | 416,000 | 5,177,000 | (1,091,000) | |
Interest rate swaps | Designated as Cash Flow Hedging Instruments | |||||
Summary of Derivative Instruments | |||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | 575,000 | 235,000 | 1,356,000 | 3,648,000 | |
Interest rate swaps | Designated as Cash Flow Hedging Instruments | Interest expense | |||||
Summary of Derivative Instruments | |||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | 3,100,000 | ||||
Equity method investments | Designated as Cash Flow Hedging Instruments | |||||
Summary of Derivative Instruments | |||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ 900,000 | $ 300,000 | $ 2,300,000 | $ 600,000 |
Risk Management and Use of De_4
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 48,061 | $ 24,085 |
Liability derivatives, fair value | (2,219) | |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 42,335 | 19,485 |
Liability derivatives, fair value | (2,219) | |
Derivatives Designated as Hedging Instruments | Foreign currency collars | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 41,827 | 19,484 |
Derivatives Designated as Hedging Instruments | Foreign currency collars | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (1,311) | |
Derivatives Designated as Hedging Instruments | Interest rate swaps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 503 | |
Derivatives Designated as Hedging Instruments | Interest rate swaps | Accounts payable, accrued expenses and other liabilities | ||
Derivatives, Fair Value | ||
Liability derivatives, fair value | (908) | |
Derivatives Designated as Hedging Instruments | Interest rate caps | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 5 | 1 |
Derivatives Not in Cash Flow Hedging Relationships | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 5,726 | 4,600 |
Derivatives Not in Cash Flow Hedging Relationships | Foreign currency collars | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | 1,126 | |
Derivatives Not in Cash Flow Hedging Relationships | Stock warrants | Other assets, net | ||
Derivatives, Fair Value | ||
Derivative assets, fair value | $ 4,600 | $ 4,600 |
Risk Management and Use of De_5
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ 19,033 | $ (2,302) | $ 25,015 | $ 17,280 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | 18,456 | (2,539) | 23,654 | 13,628 |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | 575 | 235 | 1,356 | 3,648 |
Derivatives in Cash Flow Hedging Relationships | Interest rate caps | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ 2 | $ 2 | $ 5 | $ 4 |
Risk Management and Use of De_6
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Reclassified From OCI (Details) - Designated as Cash Flow Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | $ 3,237 | $ 416 | $ 5,177 | $ (1,091) |
Foreign currency collars | Non-operating income | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | 3,359 | 614 | 5,463 | (567) |
Interest rate swaps and caps | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | ||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | $ (122) | $ (198) | $ (286) | $ (524) |
Risk Management and Use of De_7
Risk Management and Use of Derivative Financial Instruments - Derivative Gain Loss Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Total | $ 3,561 | $ (1,116) | $ 5,240 | $ 790 |
Derivatives in Cash Flow Hedging Relationships | Foreign currency collars | Non-operating income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Gain (loss) on hedging activity | 2,575 | (841) | 3,783 | 159 |
Derivatives in Cash Flow Hedging Relationships | Interest rate swaps | Interest expense | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Gain (loss) on hedging activity | 144 | 225 | 331 | 1,131 |
Derivatives Not in Cash Flow Hedging Relationships | Foreign currency collars | Other gains and (losses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | 842 | 0 | 1,126 | 0 |
Derivatives Not in Cash Flow Hedging Relationships | Stock warrants | Other gains and (losses) | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Amount of Gain (Loss) on Derivatives Recognized in Income | $ 0 | $ (500) | $ 0 | $ (500) |
Risk Management and Use of De_8
Risk Management and Use of Derivative Financial Instruments - Interest Rate Swap and Caps Summary (Details) - Derivatives Designated as Hedging Instruments - Designated as Cash Flow Hedging Instruments € in Thousands, $ in Thousands | Jun. 30, 2022 EUR (€) derivative | Jun. 30, 2022 USD ($) derivative |
Derivative Disclosure | ||
Fair value | $ 508 | |
Interest rate swaps | EUR | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 2 | 2 |
Notional Amount | € | € 46,584 | |
Fair value | $ 496 | |
Interest rate swaps | USD | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 1 | 1 |
Notional Amount | $ 15,718 | |
Fair value | $ 7 | |
Interest rate caps | EUR | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 1 | 1 |
Notional Amount | € | € 10,608 | |
Fair value | $ 5 |
Risk Management and Use of De_9
Risk Management and Use of Derivative Financial Instruments - Foreign Currency Derivatives Details (Details) € in Thousands, £ in Thousands, $ in Thousands | Jun. 30, 2022 EUR (€) derivative | Jun. 30, 2022 USD ($) derivative | Jun. 30, 2022 GBP (£) derivative |
Derivative Disclosure | |||
Fair value, foreign currency derivatives | $ 42,953 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 79 | 79 | 79 |
Notional Amount | € | € 311,100 | ||
Fair value, foreign currency derivatives | $ 35,741 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | GBP | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 85 | 85 | 85 |
Notional Amount | £ | £ 55,120 | ||
Fair value, foreign currency derivatives | $ 6,086 | ||
Derivatives Not in Cash Flow Hedging Relationships | Foreign currency collars | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 2 | 2 | 2 |
Notional Amount | € | € 15,100 | ||
Fair value, foreign currency derivatives | $ 1,126 |
Debt - Narratives (Details)
Debt - Narratives (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Apr. 29, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 EUR (€) | Apr. 29, 2022 GBP (£) | Apr. 29, 2022 EUR (€) | Feb. 20, 2020 USD ($) | Feb. 20, 2020 GBP (£) | Feb. 20, 2020 EUR (€) | |
Senior Unsecured Credit Facility | |||||||||||
Maximum borrowing capacity | $ 2,750,000,000 | $ 2,750,000,000 | $ 2,100,000,000 | ||||||||
Repayments of line of credit | $ 657,866,000 | $ 893,104,000 | |||||||||
Non Recourse Mortgage | |||||||||||
Weighted average interest rate (in percentage) | 3.80% | 3.80% | 3.80% | ||||||||
Prepayments of mortgage principal | $ (10,380,000) | (426,907,000) | |||||||||
Repayments of secured debt | (14,705,000) | (20,239,000) | |||||||||
Decrease in value of balance sheet item due to foreign currency translation | $ (43,993,000) | $ 5,973,000 | $ (53,145,000) | (7,929,000) | |||||||
Fixed interest rate | |||||||||||
Non Recourse Mortgage | |||||||||||
Weighted average interest rate (in percentage) | 4.80% | 4.80% | 4.80% | ||||||||
Variable interest rate | |||||||||||
Non Recourse Mortgage | |||||||||||
Weighted average interest rate (in percentage) | 1.90% | 1.90% | 1.90% | ||||||||
Unsecured senior notes | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Principal Amount | $ 5,500,000,000 | $ 5,500,000,000 | |||||||||
Unsecured senior notes | 0.950% Senior Notes due 2030 | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Principal Amount | € | € 525,000,000 | ||||||||||
Stated interest rate (percentage) | 0.95% | 0.95% | 0.95% | ||||||||
Redemption premium | $ 26,200,000 | ||||||||||
Loss on extinguishment of debt | $ 28,200,000 | ||||||||||
Unsecured senior notes | Euro Senior Note 2.0% Due 2023 | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Principal Amount | € | € 500,000,000 | ||||||||||
Stated interest rate (percentage) | 2% | 2% | 2% | ||||||||
Unsecured senior notes | Government bond yield | Minimum | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Variable interest rate (percentage) | 0.20% | ||||||||||
Unsecured senior notes | Government bond yield | Maximum | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Variable interest rate (percentage) | 0.35% | ||||||||||
Non-Recourse Debt | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Stated interest rate (percentage) | 5.80% | 5.80% | 5.80% | ||||||||
Loss on extinguishment of debt | $ 1,100,000 | $ 31,900,000 | |||||||||
Non Recourse Mortgage | |||||||||||
Weighted average interest rate (in percentage) | 5.10% | 5.10% | |||||||||
Prepayments of mortgage principal | (10,400,000) | $ (426,900,000) | |||||||||
Repayments of secured debt | (2,500,000) | (3,000,000) | |||||||||
Debt extinguishment cost | $ 31,800,000 | ||||||||||
Decrease in value of balance sheet item due to foreign currency translation | (329,400,000) | ||||||||||
Unsecured Revolving Credit Facility | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Maximum borrowing capacity | $ 2,400,000,000 | ||||||||||
Repayments of line of credit | $ 300,000,000 | ||||||||||
Line of credit facility, available | $ 1,400,000,000 | $ 1,400,000,000 | |||||||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | ||||||||||
Unsecured Revolving Credit Facility | USD | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Maximum borrowing capacity | $ 1,800,000,000 | ||||||||||
Variable interest rate (percentage) | 0.85% | ||||||||||
Unsecured Term Loans | GBP | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Maximum borrowing capacity | £ | £ 270,000,000 | £ 150,000,000 | |||||||||
Unsecured Term Loans | EUR | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Maximum borrowing capacity | € | € 215,000,000 | € 96,500,000 | |||||||||
Standby Letters of Credit | |||||||||||
Senior Unsecured Credit Facility | |||||||||||
Line of credit facility, available | $ 600,000 | $ 600,000 |
Debt - Summary of Senior Unsecu
Debt - Summary of Senior Unsecured Credit Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 967,563 | $ 722,075 |
Unamortized discount | 28,209 | |
Unsecured Term Loans: | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 550,108 | 311,479 |
Unsecured Term Loans: | GBP | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 326,787 | 202,183 |
Unamortized discount | $ 1,800 | 900 |
Unsecured Term Loans: | GBP | GBP LIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.9826% | |
Unsecured Term Loans: | EUR | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 223,321 | 109,296 |
Unsecured Term Loans: | EUR | EURIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.95% | |
Unsecured Revolving Credit Facility: | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 417,455 | 410,596 |
Unsecured Revolving Credit Facility: | GBP | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 0 | 184,660 |
Unsecured Revolving Credit Facility: | EUR | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 248,769 | 205,001 |
Unsecured Revolving Credit Facility: | EUR | EURIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.85% | |
Unsecured Revolving Credit Facility: | USD | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.85% | |
Debt outstanding | $ 151,000 | 0 |
Unsecured Revolving Credit Facility: | JPY | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 17,686 | $ 20,935 |
Unsecured Revolving Credit Facility: | JPY | JPY LIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.85% |
Debt - Summary of Senior Unse_2
Debt - Summary of Senior Unsecured Notes (Details) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | Dec. 31, 2021 USD ($) |
Senior Unsecured Notes | |||
Unamortized deferred financing costs | $ 25,699,000 | ||
Unamortized discount, net | 28,209,000 | ||
Unsecured senior notes | |||
Senior Unsecured Notes | |||
Principal Amount | 5,500,000,000 | ||
Principal amount of debt outstanding | 5,522,718,000 | $ 5,759,815,000 | |
Unamortized deferred financing costs | 25,600,000 | 28,700,000 | |
Unamortized discount, net | $ 26,000,000 | 29,200,000 | |
Unsecured senior notes | 4.6% Senior Notes due 2024 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 4.60% | 4.60% | |
Principal Amount | $ 500,000,000 | ||
Principal amount of debt outstanding | $ 500,000,000 | 500,000,000 | |
Unsecured senior notes | 2.25% Senior Notes due 2024 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.25% | 2.25% | |
Principal Amount | € | € 500,000,000 | ||
Principal amount of debt outstanding | $ 519,350,000 | 566,300,000 | |
Unsecured senior notes | 4.0% Senior Notes due 2025 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 4% | 4% | |
Principal Amount | $ 450,000,000 | ||
Principal amount of debt outstanding | $ 450,000,000 | 450,000,000 | |
Unsecured senior notes | 2.250% Senior Notes due 2026 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.25% | 2.25% | |
Principal Amount | € | € 500,000,000 | ||
Principal amount of debt outstanding | $ 519,350,000 | 566,300,000 | |
Unsecured senior notes | 4.25% Senior Notes due 2026 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 4.25% | 4.25% | |
Principal Amount | $ 350,000,000 | ||
Principal amount of debt outstanding | $ 350,000,000 | 350,000,000 | |
Unsecured senior notes | 2.125% Senior Notes due 2027 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.125% | 2.125% | |
Principal Amount | € | € 500,000,000 | ||
Principal amount of debt outstanding | $ 519,350,000 | 566,300,000 | |
Unsecured senior notes | 1.350% Senior Notes due 2028 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 1.35% | 1.35% | |
Principal Amount | € | € 500,000,000 | ||
Principal amount of debt outstanding | $ 519,350,000 | 566,300,000 | |
Unsecured senior notes | 3.850% Senior Notes due 2029 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 3.85% | 3.85% | |
Principal Amount | $ 325,000,000 | ||
Principal amount of debt outstanding | $ 325,000,000 | 325,000,000 | |
Unsecured senior notes | 0.950% Senior Notes due 2030 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 0.95% | 0.95% | |
Principal Amount | € | € 525,000,000 | ||
Principal amount of debt outstanding | $ 545,318,000 | 594,615,000 | |
Unsecured senior notes | 2.400% Senior Notes due 2031 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.40% | 2.40% | |
Principal Amount | $ 500,000,000 | ||
Principal amount of debt outstanding | $ 500,000,000 | 500,000,000 | |
Unsecured senior notes | 2.450% Senior Notes due 2032 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.45% | 2.45% | |
Principal Amount | $ 350,000,000 | ||
Principal amount of debt outstanding | $ 350,000,000 | 350,000,000 | |
Unsecured senior notes | 2.250% Senior Notes due 2033 | |||
Senior Unsecured Notes | |||
Coupon rate (percentage) | 2.25% | 2.25% | |
Principal Amount | $ 425,000,000 | ||
Principal amount of debt outstanding | $ 425,000,000 | $ 425,000,000 |
Debt - Scheduled Debt Principal
Debt - Scheduled Debt Principal Payments (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Long-term Debt, by Maturity | |
2022 (remainder) | $ 30,717 |
2023 | 178,319 |
2024 | 1,056,815 |
2025 | 1,466,474 |
2026 | 901,421 |
Thereafter through 2033 | 3,185,790 |
Total principal payments | 6,819,536 |
Unamortized discount, net | (28,209) |
Unamortized deferred financing costs | (25,699) |
Total | $ 6,765,628 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation expense | $ 9,800 | $ 9,000 | $ 17,591 | $ 14,429 | |
Fair value of vested stock | 25,200 | ||||
Deferred compensation obligation | $ 57,012 | $ 57,012 | $ 49,810 | ||
Potentially dilutive securities excluded from computation of diluted earning per share (share) | 0 | 0 | 0 | 0 | |
Aggregate gross sales price | $ 39,136 | $ 162,336 | $ 218,101 | $ 302,623 | |
Dividends declared (in dollars per share) | $ 1.059 | $ 1.050 | $ 2.116 | $ 2.098 | |
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Aggregate gross sales price | $ 1 | $ 1 | $ 3 | $ 4 | |
Underwriting Agreement | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Aggregate gross sales price | $ 0 | $ 309,864 | $ 0 | $ 309,864 | |
RSA and RSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Conversion rate (shares) | 1 | 1 | |||
PSU Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Performance period (in years) | 3 years | ||||
PSU Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Potential performance return rate for stock awards | 0 | ||||
PSU Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Potential performance return rate for stock awards | 3 | ||||
Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Fair value assumptions expected dividend rate (percent) | 0% | ||||
Deferred compensation arrangement with individual, common stock reserved for future issuance (shares) | 1,181,947 | 1,181,947 | 1,104,020 | ||
Deferred compensation obligation | $ 57,000 | $ 57,000 | $ 49,800 | ||
Unrecognized stock based compensation expense | $ 47,500 | $ 47,500 | |||
Weighted-average remaining term (in years) | 2 years 2 months 12 days | ||||
Long Term Incentive Plan | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Risk free interest rate (percent) | 1.20% | ||||
Fair value assumptions expected volatility rate (percent) | 36.70% |
Stock-Based Compensation and _4
Stock-Based Compensation and Equity - Restricted and Conditional Awards (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
RSA and RSU Awards | |
Shares | |
Nonvested, beginning balance - shares | shares | 306,994 |
Granted - shares | shares | 212,226 |
Vested - shares | shares | (136,412) |
Forfeited - shares | shares | (5,412) |
Adjustments - shares | shares | 0 |
Nonvested, ending balance - shares | shares | 377,396 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 71.21 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 80.10 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 72.53 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 76.54 |
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 | $ 75.65 |
PSU Awards | |
Shares | |
Nonvested, beginning balance - shares | shares | 398,255 |
Granted - shares | shares | 144,311 |
Vested - shares | shares | (165,615) |
Forfeited - shares | shares | 0 |
Adjustments - shares | shares | 143,984 |
Nonvested, ending balance - shares | shares | 520,935 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning balance, weighted average grant date fair value (in dollars per share) | $ / shares | $ 86.86 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 104.97 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 92.16 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Adjustments, weighted average grant date fair value (in dollars per share) | $ / shares | 81.65 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 89.53 |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share Reconciliation | ||||
Net income — basic | $ 127,678 | $ 120,245 | $ 284,673 | $ 171,879 |
Net income — diluted | $ 127,678 | $ 120,245 | $ 284,673 | $ 171,879 |
Weighted-average shares outstanding – basic (shares) | 194,019,451 | 180,099,370 | 192,971,256 | 178,379,654 |
Effect of dilutive securities (shares) | 744,244 | 569,362 | 734,779 | 522,605 |
Weighted-average shares outstanding – diluted (shares) | 194,763,695 | 180,668,732 | 193,706,035 | 178,902,259 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity - ATM Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Net proceeds | $ 39,136 | $ 162,336 | $ 218,101 | $ 302,623 | |
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares of common stock issued (shares) | 491,068 | 2,205,509 | 2,740,295 | 4,225,624 | |
Net proceeds | $ 1 | $ 1 | $ 3 | $ 4 | |
ATM Program | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares of common stock issued (shares) | 491,068 | 2,205,509 | 2,740,295 | 4,225,624 | |
Weighted-average price per share (usd per share) | $ 81.70 | $ 74.56 | $ 80.79 | $ 72.50 | |
Net proceeds | $ 39,101 | $ 162,292 | $ 218,095 | $ 302,512 | |
Number of shares authorized for issuance | $ 1,000,000 |
Stock-Based Compensation and _7
Stock-Based Compensation and Equity - Forward Equity Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||||
May 02, 2022 | Aug. 09, 2021 | Jun. 07, 2021 | Jun. 17, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 450,000,000 | 450,000,000 | |||||
Average Gross Offering Proceeds at Closing | $ 0 | $ 309,864 | |||||
Underwriting Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Remaining shares authorized for distribution (shares) | 7,599,187 | ||||||
Underwriting Agreement | June 2020 Equity Forwards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 5,462,500 | ||||||
Average gross offering price (usd per share) | $ 70 | ||||||
Average Gross Offering Proceeds at Closing | $ 382,375 | ||||||
Remaining shares authorized for distribution (shares) | 0 | ||||||
Share purchase option (shares) | 712,500 | ||||||
Underwriting Agreement | June 2021 Equity Forwards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 6,037,500 | ||||||
Average gross offering price (usd per share) | $ 75.30 | ||||||
Average Gross Offering Proceeds at Closing | $ 454,624 | ||||||
Remaining shares authorized for distribution (shares) | 0 | ||||||
Share purchase option (shares) | 787,500 | ||||||
Underwriting Agreement | August 2021 Equity Forwards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 5,175,000 | ||||||
Average gross offering price (usd per share) | $ 78 | ||||||
Average Gross Offering Proceeds at Closing | $ 403,650 | ||||||
Remaining shares authorized for distribution (shares) | 3,925,000 | ||||||
Share purchase option (shares) | 675,000 | ||||||
Underwriting Agreement | ATM Forwards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 3,674,187 | ||||||
Average gross offering price (usd per share) | $ 83.98 | ||||||
Average Gross Offering Proceeds at Closing | $ 308,553 | ||||||
Remaining shares authorized for distribution (shares) | 3,674,187 |
Stock-Based Compensation and _8
Stock-Based Compensation and Equity - Settlement of Equity Forwards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Net proceeds | $ 39,136 | $ 162,336 | $ 218,101 | $ 302,623 |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares of common stock delivered | 491,068 | 2,205,509 | 2,740,295 | 4,225,624 |
Net proceeds | $ 1 | $ 1 | $ 3 | $ 4 |
Common Stock | Underwriting Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares of common stock delivered | 0 | 4,523,209 | 0 | 4,523,209 |
Net proceeds | $ 0 | $ 309,864 | $ 0 | $ 309,864 |
Stock-Based Compensation and _9
Stock-Based Compensation and Equity - Reclassifications Out of Accumulated Other Comprehensive Loss Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | $ 7,694,661 | $ 6,890,455 | $ 7,583,451 | $ 6,878,369 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (5,974) | (3,065) | (14,520) | (9,421) |
Interest expense | 46,417 | 49,252 | 92,470 | 100,892 |
Other gains and (losses) | 21,746 | (7,545) | (13,999) | 33,643 |
Other Comprehensive (Loss) Income | (24,017) | 3,950 | (44,487) | 9,967 |
Ending equity balance | 7,641,462 | 7,300,767 | 7,641,462 | 7,300,767 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (242,140) | (233,889) | (221,670) | (239,906) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (266,157) | (229,960) | (266,157) | (229,960) |
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | 23,717 | 982 | 16,347 | (18,937) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | 43,693 | (1,062) | 43,693 | (1,062) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (265,857) | (234,871) | (256,705) | (220,969) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (309,850) | (228,898) | (309,850) | (228,898) |
Gains and (Losses) on Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | 0 | 0 | 18,688 | 0 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | 0 | 0 | 0 | 0 |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | (20,780) | 4,366 | (20,622) | 8,876 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (3,237) | (416) | (23,865) | 1,091 |
Other Comprehensive (Loss) Income | (24,017) | 3,950 | (44,487) | 9,967 |
Net current period other comprehensive income attributable to noncontrolling interests | (21) | (21) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (3,359) | (614) | (5,463) | 567 |
Interest expense | 122 | 198 | 286 | 524 |
Other gains and (losses) | (18,688) | |||
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | 23,213 | (1,607) | 32,523 | 16,805 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (3,237) | (416) | (5,177) | 1,091 |
Other Comprehensive (Loss) Income | 19,976 | (2,023) | 27,346 | 17,896 |
Net current period other comprehensive income attributable to noncontrolling interests | (21) | (21) | ||
Gains and (Losses) on Derivative Instruments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (3,359) | (614) | (5,463) | 567 |
Interest expense | 122 | 198 | 286 | 524 |
Other gains and (losses) | 0 | |||
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | (43,993) | 5,973 | (53,145) | (7,929) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | 0 | 0 |
Other Comprehensive (Loss) Income | (43,993) | 5,973 | (53,145) | (7,929) |
Net current period other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Foreign Currency Translation Adjustments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other gains and (losses) | 0 | |||
Gains and (Losses) on Investments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | (18,688) | 0 |
Other Comprehensive (Loss) Income | 0 | 0 | (18,688) | 0 |
Net current period other comprehensive income attributable to noncontrolling interests | 0 | 0 | ||
Gains and (Losses) on Investments | Amounts reclassified from accumulated other comprehensive loss to: | ||||
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | 0 | 0 | 0 | 0 |
Interest expense | $ 0 | $ 0 | 0 | $ 0 |
Other gains and (losses) | $ (18,688) |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 6,600 | $ 9,100 | $ 14,900 | $ 17,500 |
Deferred income tax benefit (expense) | $ 400 | $ (200) | $ 1,597 | $ 2,351 |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) property | |
Discontinued Operation Additional Disclosures | ||||
Proceeds from sales of real estate | $ 115,133 | $ 98,433 | ||
Properties disposed of by sale | ||||
Discontinued Operation Additional Disclosures | ||||
Number of properties sold (property) | property | 8 | 10 | 14 | 12 |
Proceeds from sales of real estate | $ 88,400 | $ 85,000 | $ 115,100 | $ 98,400 |
Gain (loss) on sale of real estate, net of tax | 31,100 | 19,800 | 42,400 | 29,200 |
Gain (loss) on sales of investments, tax (less than) | $ 100 | $ 3,700 | $ 100 | $ 3,800 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | |
Segment Reporting Information | ||||
Number of business segments | segment | 2 | |||
Real Estate | ||||
Segment Reporting Information | ||||
Operating property revenues | $ 5,064 | $ 3,245 | $ 8,929 | $ 5,424 |
Real Estate | Hotel in Bloomington, Minnesota | ||||
Segment Reporting Information | ||||
Operating property revenues | $ 3,300 | $ 1,700 | $ 5,400 | $ 2,500 |
Segment Reporting - Income From
Segment Reporting - Income From Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 344,397 | $ 319,724 | $ 692,835 | $ 630,890 |
Operating Expenses | ||||
Depreciation and amortization | 115,080 | 114,348 | 230,473 | 224,670 |
General and administrative | 20,841 | 20,464 | 43,925 | 42,547 |
Reimbursable tenant costs | 16,704 | 15,092 | 33,664 | 30,850 |
Property expenses, excluding reimbursable tenant costs | 11,851 | 11,815 | 25,630 | 22,698 |
Stock-based compensation expense | 9,758 | 9,048 | 17,591 | 14,429 |
Impairment charges | 6,206 | 0 | 26,385 | 0 |
Operating property expenses | 3,191 | 2,049 | 5,978 | 3,960 |
Merger and other expenses | 1,984 | (2,599) | (338) | (3,075) |
Total operating expenses | 186,758 | 171,185 | 385,378 | 338,088 |
Other Income and Expenses | ||||
Interest expense | (46,417) | (49,252) | (92,470) | (100,892) |
Gain on sale of real estate, net | 31,119 | 19,840 | 42,367 | 29,212 |
Other gains and (losses) | (21,746) | 7,545 | 13,999 | (33,643) |
Non-operating income | 5,974 | 3,065 | 14,520 | 9,421 |
Earnings (losses) from equity method investments in real estate | 7,401 | (156) | 12,173 | (9,889) |
Total other income and expenses | (23,669) | (18,958) | (9,411) | (105,791) |
Income before income taxes | 133,970 | 129,581 | 298,046 | 187,011 |
Provision for income taxes | (6,252) | (9,298) | (13,335) | (15,087) |
Net Income | 127,718 | 120,283 | 284,711 | 171,924 |
Net income attributable to noncontrolling interests | (40) | (38) | (38) | (45) |
Net Income Attributable to W. P. Carey | 127,678 | 120,245 | 284,673 | 171,879 |
Real Estate | ||||
Revenues | ||||
Lease revenues | 314,354 | 289,064 | 622,079 | 573,729 |
Income from direct financing leases and loans receivable | 17,778 | 17,422 | 36,157 | 35,164 |
Operating property revenues | 5,064 | 3,245 | 8,929 | 5,424 |
Lease termination income and other | 2,591 | 5,059 | 16,713 | 6,644 |
Revenues | 339,787 | 314,790 | 683,878 | 620,961 |
Operating Expenses | ||||
Depreciation and amortization | 115,080 | 114,348 | 230,473 | 224,670 |
General and administrative | 20,841 | 20,464 | 43,925 | 42,547 |
Reimbursable tenant costs | 16,704 | 15,092 | 33,664 | 30,850 |
Property expenses, excluding reimbursable tenant costs | 11,851 | 11,815 | 25,630 | 22,698 |
Stock-based compensation expense | 9,758 | 9,048 | 17,591 | 14,429 |
Impairment charges | 6,206 | 0 | 26,385 | 0 |
Operating property expenses | 3,191 | 2,049 | 5,978 | 3,960 |
Merger and other expenses | 1,984 | (2,599) | (341) | (3,090) |
Total operating expenses | 185,615 | 170,217 | 383,305 | 336,064 |
Other Income and Expenses | ||||
Interest expense | (46,417) | (49,252) | (92,470) | (100,892) |
Gain on sale of real estate, net | 31,119 | 19,840 | 42,367 | 29,212 |
Other gains and (losses) | (20,155) | 7,472 | 14,263 | (34,717) |
Non-operating income | 5,975 | 3,065 | 14,517 | 9,337 |
Earnings (losses) from equity method investments in real estate | 4,529 | (1,854) | 3,742 | (12,973) |
Total other income and expenses | (24,949) | (20,729) | (17,581) | (110,033) |
Income before income taxes | 129,223 | 123,844 | 282,992 | 174,864 |
Provision for income taxes | (5,955) | (9,119) | (12,868) | (15,545) |
Net Income | 123,268 | 114,725 | 270,124 | 159,319 |
Net income attributable to noncontrolling interests | (40) | (38) | (38) | (45) |
Net Income Attributable to W. P. Carey | $ 123,228 | $ 114,687 | $ 270,086 | $ 159,274 |
Segment Reporting - Income Fr_2
Segment Reporting - Income From Investment Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Revenues | $ 344,397 | $ 319,724 | $ 692,835 | $ 630,890 |
Operating Expenses | ||||
Reimbursable costs from affiliates | 1,143 | 968 | 2,070 | 2,009 |
Merger and other expenses | 1,984 | (2,599) | (338) | (3,075) |
Total operating expenses | 186,758 | 171,185 | 385,378 | 338,088 |
Other Income and Expenses | ||||
Earnings from equity method investments in the Managed Programs | 7,401 | (156) | 12,173 | (9,889) |
Other gains and (losses) | (21,746) | 7,545 | 13,999 | (33,643) |
Non-operating (loss) income | 5,974 | 3,065 | 14,520 | 9,421 |
Total other income and expenses | (23,669) | (18,958) | (9,411) | (105,791) |
Income before income taxes | 133,970 | 129,581 | 298,046 | 187,011 |
Provision for income taxes | (6,252) | (9,298) | (13,335) | (15,087) |
Net income | (40) | (38) | (38) | (45) |
Net Income from Investment Management Attributable to W. P. Carey | 127,678 | 120,245 | 284,673 | 171,879 |
Investment Management | ||||
Revenues | ||||
Revenues | 4,610 | 4,934 | 8,957 | 9,929 |
Operating Expenses | ||||
Reimbursable costs from affiliates | 1,143 | 968 | 2,070 | 2,009 |
Merger and other expenses | 0 | 0 | 3 | 15 |
Total operating expenses | 1,143 | 968 | 2,073 | 2,024 |
Other Income and Expenses | ||||
Earnings from equity method investments in the Managed Programs | 2,872 | 1,698 | 8,431 | 3,084 |
Other gains and (losses) | (1,591) | 73 | (264) | 1,074 |
Non-operating (loss) income | (1) | 0 | 3 | 84 |
Total other income and expenses | 1,280 | 1,771 | 8,170 | 4,242 |
Income before income taxes | 4,747 | 5,737 | 15,054 | 12,147 |
Provision for income taxes | (297) | (179) | (467) | 458 |
Net Income from Investment Management Attributable to W. P. Carey | 4,450 | 5,558 | 14,587 | 12,605 |
Investment Management | Asset management and other revenue | ||||
Revenues | ||||
Operating property revenues | 3,467 | 3,966 | 6,887 | 7,920 |
Investment Management | Reimbursable costs from affiliates | ||||
Revenues | ||||
Operating property revenues | $ 1,143 | $ 968 | $ 2,070 | $ 2,009 |
Segment Reporting - Total Compa
Segment Reporting - Total Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information Profit Loss | ||||
Revenues | $ 344,397 | $ 319,724 | $ 692,835 | $ 630,890 |
Operating expenses | 186,758 | 171,185 | 385,378 | 338,088 |
Other income and (expenses) | (23,669) | (18,958) | (9,411) | (105,791) |
Provision for income taxes | (6,252) | (9,298) | (13,335) | (15,087) |
Net income attributable to noncontrolling interests | (40) | (38) | (38) | (45) |
Net income attributable to W. P. Carey | $ 127,678 | $ 120,245 | $ 284,673 | $ 171,879 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Total assets | [1] | $ 15,454,229 | $ 15,480,630 |
Real Estate | |||
Assets | |||
Total assets | 15,314,097 | 15,344,703 | |
Investment Management | |||
Assets | |||
Total assets | $ 140,132 | $ 135,927 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2022 USD ($) property | Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | |
Subsequent Event | |||
Payment to acquire real estate | $ 614,397 | $ 837,003 | |
Construction in progress | |||
Subsequent Event | |||
Number of real estate properties (property) | property | 3 | ||
Payments to complete build-to-suit projects | $ 98,209 | ||
Subsequent Events | |||
Subsequent Event | |||
Payment to acquire real estate | $ 281,900 | ||
Subsequent Events | Construction in progress | |||
Subsequent Event | |||
Payments to complete build-to-suit projects | $ 25,700 | ||
Subsequent Events | Industrial Facilities In The United States | |||
Subsequent Event | |||
Number of real estate properties (property) | property | 20 | ||
Payment to acquire real estate | $ 262,000 | ||
Subsequent Events | Retail Facilities In Spain | |||
Subsequent Event | |||
Number of real estate properties (property) | property | 5 | ||
Payment to acquire real estate | $ 19,900 |