Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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, $0.001 Par Value | |
Trading Symbol | WPC | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 208,032,718 | |
Entity Central Index Key | 0001025378 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Investments in real estate: | |||
Land, buildings and improvements — net lease and other | $ 12,862,423 | $ 11,791,734 | |
Land, buildings and improvements — operating properties | 1,084,524 | 83,673 | |
Net investments in direct financing leases and loans receivable | 781,345 | 813,577 | |
In-place lease intangible assets and other | 2,578,236 | 2,386,000 | |
Above-market rent intangible assets | 840,943 | 843,410 | |
Investments in real estate | 18,147,471 | 15,918,394 | |
Accumulated depreciation and amortization | (3,065,161) | (2,889,294) | |
Assets held for sale, net | 38,578 | 8,269 | |
Net investments in real estate | 15,120,888 | 13,037,369 | |
Equity method investments | 297,665 | 356,637 | |
Cash and cash equivalents | 186,417 | 165,427 | |
Due from affiliates | 602 | 1,826 | |
Other assets, net | 1,146,099 | 1,017,842 | |
Goodwill | 1,023,171 | 901,529 | |
Total assets | [1] | 17,774,842 | 15,480,630 |
Debt: | |||
Senior unsecured notes, net | 5,651,865 | 5,701,913 | |
Unsecured term loans, net | 506,004 | 310,583 | |
Unsecured revolving credit facility | 462,660 | 410,596 | |
Non-recourse mortgages, net | 1,162,814 | 368,524 | |
Debt, net | 7,783,343 | 6,791,616 | |
Accounts payable, accrued expenses and other liabilities | 594,139 | 572,846 | |
Below-market rent and other intangible liabilities, net | 184,885 | 183,286 | |
Deferred income taxes | 174,276 | 145,572 | |
Dividends payable | 224,302 | 203,859 | |
Total liabilities | [1] | 8,960,945 | 7,897,179 |
Commitments and contingencies (Note 12) | |||
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; 208,032,718 and 190,013,751 shares, respectively, issued and outstanding | 208 | 190 | |
Additional paid-in capital | 11,510,303 | 9,977,686 | |
Distributions in excess of accumulated earnings | (2,470,261) | (2,224,231) | |
Deferred compensation obligation | 57,012 | 49,810 | |
Accumulated other comprehensive loss | (298,057) | (221,670) | |
Total stockholders’ equity | 8,799,205 | 7,581,785 | |
Noncontrolling interests | 14,692 | 1,666 | |
Total equity | 8,813,897 | 7,583,451 | |
Total liabilities and equity | $ 17,774,842 | $ 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 | Sep. 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) | 208,032,718 | 190,013,751 |
Common stock, shares outstanding (shares) | 208,032,718 | 190,013,751 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Investment Management: | ||||
Revenues | $ 383,622 | $ 325,754 | $ 1,076,457 | $ 956,644 |
Operating Expenses | ||||
Depreciation and amortization | 132,181 | 115,657 | 362,654 | 340,327 |
Impairment charges — Investment Management goodwill | 29,334 | 0 | 29,334 | 0 |
General and administrative | 22,299 | 19,750 | 66,224 | 62,297 |
Reimbursable tenant costs | 18,874 | 15,092 | 52,538 | 45,942 |
Merger and other expenses | 17,667 | (908) | 17,329 | (3,983) |
Property expenses, excluding reimbursable tenant costs | 11,244 | 13,734 | 36,874 | 36,432 |
Operating property expenses | 9,357 | 3,001 | 15,335 | 6,961 |
Stock-based compensation expense | 5,511 | 4,361 | 23,102 | 18,790 |
Reimbursable costs from affiliates | 344 | 1,041 | 2,414 | 3,050 |
Impairment charges — real estate | 0 | 16,301 | 26,385 | 16,301 |
Total operating expenses | 246,811 | 188,029 | 632,189 | 526,117 |
Other Income and Expenses | ||||
Interest expense | (59,022) | (48,731) | (151,492) | (149,623) |
Gain on change in control of interests | 33,931 | 0 | 33,931 | 0 |
Other gains and (losses) | (15,020) | 49,219 | (1,021) | 15,576 |
Earnings (losses) from equity method investments | 11,304 | 5,735 | 23,477 | (4,154) |
Non-operating income | 9,263 | 1,283 | 23,783 | 10,704 |
(Loss) gain on sale of real estate, net | (4,736) | 1,702 | 37,631 | 30,914 |
Total other income and expenses | (24,280) | 9,208 | (33,691) | (96,583) |
Income before income taxes | 112,531 | 146,933 | 410,577 | 333,944 |
Provision for income taxes | (8,263) | (8,347) | (21,598) | (23,434) |
Net Income | 104,268 | 138,586 | 388,979 | 310,510 |
Net loss (income) attributable to noncontrolling interests | 660 | (39) | 622 | (84) |
Net Income Attributable to W. P. Carey | $ 104,928 | $ 138,547 | $ 389,601 | $ 310,426 |
Basic earnings per share (usd per share) | $ 0.52 | $ 0.75 | $ 1.98 | $ 1.72 |
Diluted earnings per share (usd per share) | $ 0.51 | $ 0.74 | $ 1.98 | $ 1.71 |
Weighted-Average Shares Outstanding | ||||
Basic (in shares) | 203,093,553 | 185,422,639 | 196,382,433 | 180,753,115 |
Diluted (in shares) | 204,098,116 | 186,012,478 | 197,264,509 | 181,323,128 |
Real Estate | ||||
Real Estate: | ||||
Lease revenues | $ 331,902 | $ 298,616 | $ 953,981 | $ 872,345 |
Income from direct financing leases and loans receivable | 20,637 | 16,754 | 56,794 | 51,917 |
Operating property revenues | 21,350 | 4,050 | 30,279 | 9,474 |
Lease termination income and other | 8,192 | 1,421 | 24,905 | 8,066 |
Investment Management: | ||||
Operating property revenues | 21,350 | 4,050 | 30,279 | 9,474 |
Revenues | 382,081 | 320,841 | 1,065,959 | 941,802 |
Operating Expenses | ||||
Depreciation and amortization | 132,181 | 115,657 | 362,654 | 340,327 |
Impairment charges — Investment Management goodwill | 0 | |||
General and administrative | 22,299 | 19,750 | 66,224 | 62,297 |
Reimbursable tenant costs | 18,874 | 15,092 | 52,538 | 45,942 |
Merger and other expenses | 17,667 | (908) | 17,326 | (3,998) |
Property expenses, excluding reimbursable tenant costs | 11,244 | 13,734 | 36,874 | 36,432 |
Operating property expenses | 9,357 | 3,001 | 15,335 | 6,961 |
Stock-based compensation expense | 5,511 | 4,361 | 23,102 | 18,790 |
Impairment charges — real estate | 0 | 16,301 | 26,385 | 16,301 |
Total operating expenses | 217,133 | 186,988 | 600,438 | 523,052 |
Other Income and Expenses | ||||
Interest expense | (59,022) | (48,731) | (151,492) | (149,623) |
Gain on change in control of interests | 11,405 | 0 | 11,405 | 0 |
Other gains and (losses) | (13,960) | 48,172 | 303 | 13,455 |
Earnings (losses) from equity method investments | 6,447 | 2,445 | 10,189 | (10,528) |
Non-operating income | 9,264 | 1,283 | 23,781 | 10,620 |
(Loss) gain on sale of real estate, net | (4,736) | 1,702 | 37,631 | 30,914 |
Total other income and expenses | (50,602) | 4,871 | (68,183) | (105,162) |
Income before income taxes | 114,346 | 138,724 | 397,338 | 313,588 |
Provision for income taxes | (3,631) | (7,827) | (16,499) | (23,372) |
Net Income | 110,715 | 130,897 | 380,839 | 290,216 |
Net loss (income) attributable to noncontrolling interests | 660 | (39) | 622 | (84) |
Net Income Attributable to W. P. Carey | 111,375 | 130,858 | 381,461 | 290,132 |
Investment Management | ||||
Investment Management: | ||||
Revenues | 1,541 | 4,913 | 10,498 | 14,842 |
Operating Expenses | ||||
Impairment charges — Investment Management goodwill | 29,334 | 0 | 29,334 | 0 |
Merger and other expenses | 0 | 0 | 3 | 15 |
Reimbursable costs from affiliates | 344 | 1,041 | 2,414 | 3,050 |
Total operating expenses | 29,678 | 1,041 | 31,751 | 3,065 |
Other Income and Expenses | ||||
Gain on change in control of interests | 22,526 | 0 | 22,526 | 0 |
Other gains and (losses) | (1,060) | 1,047 | (1,324) | 2,121 |
Earnings (losses) from equity method investments | 4,857 | 3,290 | 13,288 | 6,374 |
Non-operating income | (1) | 0 | 2 | 84 |
Total other income and expenses | 26,322 | 4,337 | 34,492 | 8,579 |
Income before income taxes | (1,815) | 8,209 | 13,239 | 20,356 |
Provision for income taxes | (4,632) | (520) | (5,099) | (62) |
Net Income Attributable to W. P. Carey | (6,447) | 7,689 | 8,140 | 20,294 |
Investment Management | Asset management and other revenue | ||||
Real Estate: | ||||
Operating property revenues | 1,197 | 3,872 | 8,084 | 11,792 |
Investment Management: | ||||
Operating property revenues | 1,197 | 3,872 | 8,084 | 11,792 |
Investment Management | Reimbursable costs from affiliates | ||||
Real Estate: | ||||
Operating property revenues | 344 | 1,041 | 2,414 | 3,050 |
Investment Management: | ||||
Operating property revenues | $ 344 | $ 1,041 | $ 2,414 | $ 3,050 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 104,268 | $ 138,586 | $ 388,979 | $ 310,510 |
Other Comprehensive (Loss) Income | ||||
Foreign currency translation adjustments | (56,053) | (20,400) | (109,198) | (28,329) |
Unrealized gain on derivative instruments | 23,610 | 13,114 | 50,956 | 31,010 |
Reclassification of unrealized gain on investments to net income | 0 | 0 | (18,688) | 0 |
Other Comprehensive (Loss) Income | (32,443) | (7,286) | (76,930) | 2,681 |
Comprehensive Income | 71,825 | 131,300 | 312,049 | 313,191 |
Amounts Attributable to Noncontrolling Interests | ||||
Net loss (income) | 660 | (39) | 622 | (84) |
Foreign currency translation adjustments | 543 | 0 | 543 | 0 |
Unrealized gain on derivative instruments | 0 | 0 | 0 | (21) |
Comprehensive loss (income) attributable to noncontrolling interests | 1,203 | (39) | 1,165 | (105) |
Comprehensive Income Attributable to W. P. Carey | $ 73,028 | $ 131,261 | $ 313,214 | $ 313,086 |
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 Equity Forwards, net | 457,200 | 457,200 | $ 7 | 457,193 | ||||
Shares issued under Equity Forwards, net, shares | 6,535,709 | |||||||
Shares issued upon delivery of vested restricted share awards | (3,779) | (3,779) | (3,779) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 119,268 | |||||||
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 | |||||||
Amortization of stock-based compensation expense | 18,790 | 18,790 | 18,790 | |||||
Deferral of vested shares, net | (7,044) | 7,044 | ||||||
Distributions to noncontrolling interests | (104) | (104) | ||||||
Dividends declared | (579,769) | (579,769) | 906 | (581,427) | 752 | |||
Net income | 310,510 | 310,426 | 310,426 | 84 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (28,329) | (28,329) | (28,329) | |||||
Unrealized gain on derivative instruments | 31,010 | 30,989 | 30,989 | 21 | ||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Sep. 30, 2021 | 7,386,697 | 7,385,040 | $ 186 | 9,694,226 | (2,121,936) | 49,810 | (237,246) | 1,657 |
Ending equity balance, shares at Sep. 30, 2021 | 186,284,955 | |||||||
Beginning 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 |
Beginning equity balance, shares at Jun. 30, 2021 | 184,253,151 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued under Equity Forwards, net | 147,693 | 147,693 | $ 2 | 147,691 | ||||
Shares issued under Equity Forwards, net, shares | 2,012,500 | |||||||
Shares issued upon delivery of vested restricted share awards | (2) | (2) | (2) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 19,304 | |||||||
Amortization of stock-based compensation expense | 4,361 | 4,361 | 4,361 | |||||
Deferral of vested shares, net | 5 | (5) | ||||||
Distributions to noncontrolling interests | (48) | (48) | ||||||
Dividends declared | (197,374) | (197,374) | (197,374) | |||||
Net income | 138,586 | 138,547 | 138,547 | 39 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (20,400) | (20,400) | (20,400) | |||||
Unrealized gain on derivative instruments | 13,114 | 13,114 | 13,114 | |||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Sep. 30, 2021 | 7,386,697 | 7,385,040 | $ 186 | 9,694,226 | (2,121,936) | 49,810 | (237,246) | 1,657 |
Ending equity balance, shares at Sep. 30, 2021 | 186,284,955 | |||||||
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 to stockholders of CPA:18 – Global in connection with CPA:18 Merger | $ 1,205,750 | 1,205,750 | $ 14 | 1,205,736 | ||||
Shares issued to stockholders of CPA:18 – Global in connection with CPA:18 Merger, shares | 13,786,302 | |||||||
Shares issued under Equity Forwards, net | 97,455 | 97,455 | $ 1 | 97,454 | ||||
Shares issued under Equity Forwards, net, shares | 1,337,500 | |||||||
Shares issued upon delivery of vested restricted share awards | (6,612) | (6,612) | (6,612) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 152,830 | |||||||
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 | |||||||
Amortization of stock-based compensation expense | 23,102 | 23,102 | 23,102 | |||||
Deferral of vested shares, net | (6,696) | 6,696 | ||||||
Acquisition of noncontrolling interests in connection with the CPA:18 Merger | 14,367 | 14,367 | ||||||
Distributions to noncontrolling interests | (176) | (176) | ||||||
Dividends declared | (633,745) | (633,745) | 1,380 | (635,631) | 506 | |||
Net income | 388,979 | 389,601 | 389,601 | (622) | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (109,198) | (108,655) | (108,655) | (543) | ||||
Unrealized gain on derivative instruments | 50,956 | 50,956 | 50,956 | |||||
Reclassification of unrealized gain on investments to net income | (18,688) | (18,688) | (18,688) | |||||
Ending equity balance at Sep. 30, 2022 | $ 8,813,897 | 8,799,205 | $ 208 | 11,510,303 | (2,470,261) | 57,012 | (298,057) | 14,692 |
Ending equity balance, shares at Sep. 30, 2022 | 208,032,718 | 208,032,718 | ||||||
Beginning 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 |
Beginning equity balance, shares at Jun. 30, 2022 | 192,891,792 | |||||||
W.P. Carey Stockholders | ||||||||
Shares issued to stockholders of CPA:18 – Global in connection with CPA:18 Merger | 1,205,750 | 1,205,750 | $ 14 | 1,205,736 | ||||
Shares issued to stockholders of CPA:18 – Global in connection with CPA:18 Merger, shares | 13,786,302 | |||||||
Shares issued under Equity Forwards, net | 97,455 | 97,455 | $ 1 | 97,454 | ||||
Shares issued under Equity Forwards, net, shares | 1,337,500 | |||||||
Shares issued upon delivery of vested restricted share awards | (12) | (12) | (12) | |||||
Shares issued upon delivery of vested restricted share awards, shares | 17,124 | |||||||
Amortization of stock-based compensation expense | 5,511 | 5,511 | 5,511 | |||||
Acquisition of noncontrolling interests in connection with the CPA:18 Merger | 14,367 | 14,367 | ||||||
Distributions to noncontrolling interests | (111) | (111) | ||||||
Dividends declared | (222,350) | (222,350) | (222,350) | |||||
Net income | 104,268 | 104,928 | 104,928 | (660) | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | (56,053) | (55,510) | (55,510) | (543) | ||||
Unrealized gain on derivative instruments | 23,610 | 23,610 | 23,610 | |||||
Reclassification of unrealized gain on investments to net income | 0 | |||||||
Ending equity balance at Sep. 30, 2022 | $ 8,813,897 | $ 8,799,205 | $ 208 | $ 11,510,303 | $ (2,470,261) | $ 57,012 | $ (298,057) | $ 14,692 |
Ending equity balance, shares at Sep. 30, 2022 | 208,032,718 | 208,032,718 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in dollars per share) | $ 1.061 | $ 1.052 | $ 3.177 | $ 3.150 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows — Operating Activities | ||
Net income | $ 388,979 | $ 310,510 |
Adjustments to net income: | ||
Depreciation and amortization, including intangible assets and deferred financing costs | 374,163 | 351,503 |
Straight-line rent adjustments | (42,342) | (34,034) |
Gain on sale of real estate, net | (37,631) | (30,914) |
Gain on change in control of interests | (33,931) | 0 |
Amortization of rent-related intangibles and deferred rental revenue | 34,378 | 41,346 |
Impairment charges — Investment Management goodwill | 29,334 | 0 |
Decrease in allowance for credit losses | (27,777) | (6,737) |
Impairment charges — real estate | 26,385 | 16,301 |
Distributions of earnings from equity method investments | 26,276 | 8,816 |
(Earnings) losses from equity method investments | (23,477) | 4,154 |
Stock-based compensation expense | 23,102 | 18,790 |
Net realized and unrealized losses (gains) on equity securities, extinguishment of debt, foreign currency exchange rate movements, and other | 22,322 | (5,992) |
Deferred income tax benefit | (1,561) | (3,012) |
Asset management revenue received in shares of CPA:18 – Global | (1,024) | (9,452) |
Net changes in other operating assets and liabilities | (54,668) | (35,883) |
Net Cash Provided by Operating Activities | 702,528 | 625,396 |
Cash Flows — Investing Activities | ||
Purchases of real estate | (1,013,950) | (1,004,433) |
Cash paid to stockholders of CPA:18 – Global in the CPA:18 Merger | (423,435) | 0 |
Cash and restricted cash acquired in connection with the CPA:18 Merger | 331,063 | 0 |
Proceeds from sales of real estate | 170,341 | 126,697 |
Funding for real estate construction, redevelopments, and other capital expenditures on real estate | (83,721) | (87,955) |
Capital contributions to equity method investments | (69,127) | (97,380) |
Proceeds from redemption of WLT preferred stock (Note 9) | 65,000 | 0 |
Proceeds from repayment of loans receivable | 34,000 | 0 |
Proceeds from repayment of short-term loans to affiliates | 26,000 | 62,048 |
Funding of short-term loans to affiliates | (26,000) | (41,000) |
Investment in loan receivable | (20,098) | 0 |
Other investing activities, net | (16,945) | (22,854) |
Return of capital from equity method investments | 7,447 | 11,611 |
Net Cash Used in Investing Activities | (1,019,425) | (1,053,266) |
Cash Flows — Financing Activities | ||
Proceeds from Unsecured Revolving Credit Facility | 1,460,226 | 1,360,312 |
Repayments of Unsecured Revolving Credit Facility | (1,357,254) | (1,179,552) |
Dividends paid | (613,302) | (567,240) |
Proceeds from issuance of Senior Unsecured Notes | 334,775 | 1,038,391 |
Proceeds from Unsecured Term Loans | 283,139 | 0 |
Proceeds from shares issued under ATM Program, net of selling costs | 218,081 | 302,506 |
Proceeds from shares issued under Equity Forwards, net of selling costs | 97,456 | 457,227 |
Scheduled payments of mortgage principal | (51,548) | (51,013) |
Prepayments of mortgage principal | (10,381) | (427,492) |
Payments for withholding taxes upon delivery of equity-based awards | (6,612) | (3,779) |
Other financing activities, net | 11,781 | 2,252 |
Payment of financing costs | (2,128) | (8,201) |
Distributions paid to noncontrolling interests | (176) | (104) |
Redemption of Senior Unsecured Notes | 0 | (617,442) |
Net Cash Provided by Financing Activities | 364,057 | 305,865 |
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 | (15,097) | (7,852) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 32,063 | (129,857) |
Cash and cash equivalents and restricted cash, beginning of period | 217,950 | 311,779 |
Cash and cash equivalents and restricted cash, end of period | $ 250,013 | $ 181,922 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - CPA 18 Merger (Parenthetical) $ in Thousands | Aug. 01, 2022 USD ($) |
CPA 18 Merger | |
Total Consideration | |
Fair value of W. P. Carey shares of common stock issued | $ 1,205,750 |
Cash consideration paid | 423,297 |
Cash paid for fractional shares | 138 |
Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger | 88,299 |
Estimate of consideration expected to be transferred | 1,746,058 |
Assets Acquired at Fair Value | |
Land, buildings and improvements — net lease and other | 881,613 |
Land, buildings and improvements — operating properties | 1,000,447 |
Net investments in direct financing leases and loans receivable | 38,517 |
In-place lease and other intangible assets | 224,458 |
Above-market rent intangible assets | 61,090 |
Assets held for sale | 85,026 |
Goodwill | 172,346 |
Other assets, net (excluding restricted cash) | 25,229 |
Liabilities Assumed at Fair Value | |
Non-recourse mortgages, net | 900,173 |
Accounts payable, accrued expenses and other liabilities | 90,035 |
Below-market rent and other intangible liabilities | 16,836 |
Deferred income taxes | 52,320 |
Amounts attributable to noncontrolling interests | 14,367 |
Net assets acquired excluding cash and restricted cash | 1,414,995 |
Cash and cash equivalents and restricted cash acquired | 331,063 |
CPA 18 Merger | Jointly owned investments | |
Total Consideration | |
Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger | $ 28,574 |
Business and Organization
Business and Organization | 9 Months Ended |
Sep. 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.” 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. On August 1, 2022, a non-traded REIT that we advised, Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”) merged with and into one of our indirect subsidiaries (the “CPA:18 Merger”) ( Note 3 ). At September 30, 2022, we were the advisor to Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties in Europe ( Note 4 ). We refer to CPA:18 – Global (prior to the CPA:18 Merger) and CESH collectively as the “Managed Programs.” We no longer raise capital for new or existing funds, but currently expect to continue managing CESH through the end of its life cycle ( Note 4 ). 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 September 30, 2022, our owned portfolio was comprised of our full or partial ownership interests in 1,428 properties, totaling approximately 175 million square feet, substantially all of which were net leased to 391 tenants, with a weighted-average lease term of 10.9 years and an occupancy rate of 98.9%. In addition, at September 30, 2022, our portfolio was comprised of full or partial ownership interests in 87 operating properties, including 84 self-storage properties, two student housing properties, and one hotel, totaling approximately 6.6 million square feet. Investment Management — Through our TRSs, we manage the real estate investment portfolio for CESH, for which we earn asset management revenue. We may also be entitled to receive certain distributions pursuant to our advisory arrangements with CESH. At September 30, 2022, CESH owned all or a portion of three net-leased properties, totaling approximately 0.4 million square feet, all of which were leased to one tenant, with an occupancy rate of 100.0%. CESH also owned one active build-to-suit project at the same date. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 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. Upon the closing of the CPA:18 Merger, we acquired five consolidated VIEs and declassified three entities as VIEs. At September 30, 2022 and December 31, 2021, we considered 16 and 14 entities to be VIEs, respectively, of which we consolidated 11 and six, respectively, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): September 30, 2022 December 31, 2021 Land, buildings and improvements — net lease and other $ 606,459 $ 426,831 Land, buildings and improvements — operating properties 105,883 — Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 71,017 42,884 Above-market rent intangible assets 33,414 26,720 Accumulated depreciation and amortization (168,802) (154,413) Total assets 823,378 500,884 Non-recourse mortgages, net $ 157,044 $ 1,485 Below-market rent and other intangible liabilities, net 19,318 20,568 Total liabilities 224,509 46,302 At September 30, 2022 and December 31, 2021, our five and eight unconsolidated VIEs included our interests in (i) three and six unconsolidated real estate investments, respectively, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. As of September 30, 2022, and December 31, 2021, the net carrying amount of our investments in these entities was $629.8 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. We currently present Land, buildings and improvements — net lease and other and Land, buildings and improvements — operating properties on separate line items in the consolidated balance sheets. Previously, land, buildings and improvements attributable to net lease properties and operating properties were aggregated within Land, buildings and improvements in the consolidated balance sheets ( Note 5 ). 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 $3.7 million and $2.4 million for the three months ended September 30, 2022 and 2021, respectively, and $9.1 million and $4.9 million for the nine months ended September 30, 2022 and 2021, respectively ( Note 16 ). Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 4 . 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 6 ), 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): September 30, 2022 December 31, 2021 Cash and cash equivalents $ 186,417 $ 165,427 Restricted cash (a) 63,596 52,523 Total cash and cash equivalents and restricted cash $ 250,013 $ 217,950 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Merger with CPA_18 _ Global
Merger with CPA:18 – Global | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Merger with CPA:18 – Global | Merger with CPA:18 – Global CPA:18 Merger On February 27, 2022, we and certain of our subsidiaries entered into a merger agreement with CPA:18 – Global, pursuant to which CPA:18 – Global would merge with and into one of our indirect subsidiaries in exchange for shares of our common stock and cash, subject to approval by the stockholders of CPA:18 – Global. The CPA:18 Merger and related transactions were approved by the stockholders of CPA:18 – Global on July 26, 2022 and completed on August 1, 2022. At the effective time of the CPA:18 Merger, each share of CPA:18 – Global common stock issued and outstanding immediately prior to the effective time of the CPA:18 Merger was canceled and, in exchange for cancellation of such share, the rights attaching to such share were 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 CPA:18 Merger was automatically canceled and retired, and ceased to exist, for no Merger Consideration. In exchange for the 141,099,002 shares of CPA:18 – Global common stock that we and our subsidiaries did not previously own, we paid total merger consideration of approximately $1.6 billion, consisting of (i) the issuance of 13,786,302 shares of our common stock with a fair value of $1.2 billion, based on the closing price of our common stock on August 1, 2022 of $87.46 per share, (ii) cash consideration of $423.3 million, and (iii) cash of $0.1 million paid in lieu of issuing any fractional shares of our common stock. Pursuant to the terms of the definitive merger agreement, in connection with the closing of the CPA:18 Merger, we waived certain back-end fees that we would have otherwise been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our pre-closing advisory agreement with CPA:18 – Global. Immediately prior to the closing of the CPA:18 Merger, CPA:18 – Global’s portfolio was comprised of full or partial ownership interests in 42 leased properties (including seven properties in which we already owned a partial ownership interest), substantially all of which were net leased with a weighted-average lease term of 7.0 years, an occupancy rate of 99.3%, and an estimated contractual minimum annualized base rent (“ABR”) totaling $81.0 million, as well as 65 self-storage operating properties and two student housing operating properties totaling 5.1 million square feet. The related property-level debt was comprised of non-recourse mortgage loans with an aggregate consolidated fair value of approximately $900.2 million with a weighted-average annual interest rate of 5.1% as of August 1, 2022. From the closing of the CPA:18 Merger through September 30, 2022, lease revenues, operating property revenues, and net loss from properties acquired were $16.5 million, $15.4 million, and $0.5 million, respectively. Two of the net lease properties that we acquired in the CPA:18 Merger were classified as Assets held for sale, with an aggregate fair value of $85.0 million at acquisition ( Note 5 ). From the closing of the CPA:18 Merger through September 30, 2022, lease revenues from these properties totaled $2.1 million. We sold one of these properties in August 2022 for total proceeds, net of selling costs, of $44.5 million, and recognized a loss on sale of $0.2 million ( N ote 15 ). Purchase Price Allocation We accounted for the CPA:18 Merger as a business combination under the acquisition method of accounting. After consideration of all applicable factors pursuant to the business combination accounting rules, we were considered the “accounting acquirer” due to various factors, including the fact that our stockholders held the largest portion of the voting rights in the combined company upon completion of the CPA:18 Merger. Costs related to the CPA:18 Merger have been expensed as incurred and classified within Merger and other expenses in the consolidated statements of income, totaling $17.1 million for the nine months ended September 30, 2022. The purchase price was allocated to the assets acquired and liabilities assumed, based upon their preliminary fair values at August 1, 2022. The following tables summarize the preliminary consideration and estimated fair values of the assets acquired and liabilities assumed in the acquisition, based on the current best estimate of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Investments in land, buildings and improvements, net investments in direct financing leases, non-recourse mortgages, and noncontrolling interests were based on preliminary valuation data and estimates. Preliminary Purchase Price Allocation (in thousands) Total Consideration Fair value of W. P. Carey shares of common stock issued $ 1,205,750 Cash consideration paid 423,297 Cash paid for fractional shares 138 Merger Consideration 1,629,185 Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger 88,299 Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger 28,574 $ 1,746,058 Preliminary Purchase Price Allocation (in thousands) Assets Land, buildings and improvements — net lease and other $ 881,613 Land, buildings and improvements — operating properties 1,000,447 Net investments in direct financing leases and loans receivable 38,517 In-place lease and other intangible assets 224,458 Above-market rent intangible assets 61,090 Assets held for sale 85,026 Cash and cash equivalents and restricted cash 331,063 Other assets, net (excluding restricted cash) 25,229 Total assets 2,647,443 Liabilities Non-recourse mortgages, net 900,173 Accounts payable, accrued expenses and other liabilities 90,035 Below-market rent and other intangible liabilities 16,836 Deferred income taxes 52,320 Total liabilities 1,059,364 Total identifiable net assets 1,588,079 Noncontrolling interests (14,367) Goodwill 172,346 $ 1,746,058 Goodwill The $172.3 million of goodwill recorded in the CPA:18 Merger was primarily due to the premium we paid over CPA:18 – Global’s estimated fair value. Management believes the premium is supported by several factors, including that the CPA:18 Merger (i) concludes our exit from the non-traded REIT business, (ii) adds a high-quality diversified portfolio of net lease assets that is well-aligned with our existing portfolio, (iii) enhances certain portfolio metrics, and (iv) adds an attractive portfolio of self-storage operating properties. The fair value of the 13,786,302 shares of our common stock issued in the CPA:18 Merger as part of the consideration paid for CPA:18 – Global of $1.6 billion was derived from the closing market price of our common stock on the acquisition date. As required by GAAP, the fair value related to the assets acquired and liabilities assumed, as well as the shares exchanged, has been computed as of the date we gained control, which was the closing date of the CPA:18 Merger, in a manner consistent with the methodology described above. Goodwill is not deductible for income tax purposes. Equity Investments During the third quarter of 2022, we recognized a gain on change in control of interests of approximately $22.5 million, which was the difference between the carrying value of approximately $65.8 million and the fair value of approximately $88.3 million of our previously held equity interest in 8,556,732 shares of CPA:18 – Global’s common stock. The CPA:18 Merger also resulted in our acquisition of the remaining interests in four investments in which we already had a joint interest and accounted for under the equity method. Upon acquiring the remaining interests in these investments, we owned 100% of these investments and thus accounted for the acquisitions of these interests utilizing the purchase method of accounting. Due to the change in control of the four jointly owned investments that occurred, we recorded a gain on change in control of interests of approximately $11.4 million during the third quarter of 2022, which was the difference between our carrying values and the fair values of our previously held equity interests on August 1, 2022 of approximately $17.2 million and approximately $28.6 million, respectively. Subsequent to the CPA:18 Merger, we consolidate these wholly owned investments. The fair values of our previously held equity interests are based on the estimated fair market values of the underlying real estate and related mortgage debt, both of which were determined by management relying in part on a third party. Real estate valuation requires significant judgment. We determined the significant assumptions to be Level 3 with ranges for our previously held equity interests as follows: • Market rents ranged from $8.65 per square foot to $21.00 per square foot; • Discount rates applied to the estimated net operating income of each property ranged from approximately 5.75% to 9.75%; • Discount rates applied to the estimated residual value of each property ranged from approximately 6.50% to 8.50%; • Residual capitalization rates applied to the properties ranged from approximately 5.75% to 8.00%; • The fair market value of the property level debt was determined based upon available market data for comparable liabilities and by applying selected discount rates to the stream of future debt payments; and • Discount rates applied to the property level debt cash flows ranged from approximately 2.28% to 5.50%. Pro Forma Financial Information The following consolidated pro forma financial information has been presented as if the CPA:18 Merger had occurred on January 1, 2021 for the three and nine months ended September 30, 2022 and 2021. The pro forma financial information is not necessarily indicative of what the actual results would have been had the CPA:18 Merger on that date, nor does it purport to represent the results of operations for future periods. (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Pro forma total revenues $ 397,915 $ 372,498 $ 1,187,887 $ 1,089,031 |
Agreements and Transactions wit
Agreements and Transactions with Related Parties | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Agreements and Transactions with Related Parties | Agreements and Transactions with Related Parties Advisory Agreements and Partnership Agreements with the Managed Programs We currently have advisory arrangements with CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. Upon completion of the CPA:18 Merger on August 1, 2022 ( Note 3 ), our advisory agreements with CPA:18 – Global were terminated, and we ceased earning revenue from CPA:18 – Global. We no longer raise capital for new or existing funds, but we currently expect to continue to manage CESH and earn various fees (as described below) through the end of its life cycle. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Distributions of Available Cash (a) $ 3,345 $ 1,623 $ 8,746 $ 4,949 Asset management revenue (b) (c) 1,197 3,872 8,084 11,792 Reimbursable costs from affiliates (b) 344 1,041 2,414 3,050 Interest income on deferred acquisition fees and loans to affiliates (d) 4 57 112 121 $ 4,890 $ 6,593 $ 19,356 $ 19,912 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 CPA:18 – Global $ 4,466 $ 5,608 $ 17,854 $ 16,578 CESH 424 909 1,502 3,054 WLT (reimbursed transition services) — 76 — 280 $ 4,890 $ 6,593 $ 19,356 $ 19,912 __________ (a) Included within Earnings (losses) from equity method investments in the consolidated statements of income. Amounts for the three and nine months ended September 30, 2022 reflect an additional month of activity as compared to the prior year periods, since the CPA:18 Merger closed on August 1, 2022 and distributions of Available Cash are paid on a quarter lag. (b) Amounts represent revenues from contracts under ASC 606. (c) Included within Asset management and other revenue 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): September 30, 2022 December 31, 2021 Asset management fees receivable $ 352 $ 494 Accounts receivable 159 336 Reimbursable costs 91 974 Current acquisition fees receivable — 19 Deferred acquisition fees receivable, including accrued interest — 3 $ 602 $ 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 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 from March 1, 2022 to August 1, 2022 (the date of the completion of the CPA:18 Merger) Rate depended on the type of investment and was based on the average market or average equity value, as applicable CESH 1.0% In cash Based on gross assets at fair value Reimbursable Costs from Affiliates CESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred. Distributions of Available Cash We were 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. After completion of the CPA:18 Merger on August 1, 2022 ( Note 3 ), we no longer receive distributions of Available Cash from CPA:18 – Global. Back-End Fees and Interests in the Managed Programs Under our advisory arrangements with CESH, we may also receive compensation in connection with providing a liquidity event for its investors. Such back-end fees or interests include or may include interests in disposition proceeds. There can be no assurance as to whether or when any back-end fees or interests will be realized. Pursuant to the terms of the definitive merger agreement, in connection with the closing of the CPA:18 Merger, we waived 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 ( Note 3 ). 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. The loan agreement with CPA:18 – Global was terminated upon completion of the CPA:18 Merger on August 1, 2022. No such line of credit with CESH existed during the reporting period. Other At September 30, 2022, we owned interests in ten jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate six such investments and account for the remaining four investments under the equity method of accounting ( Note 8 ). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option ( Note 8 ). |
Land, Buildings and Improvement
Land, Buildings and Improvements and Assets Held for Sale | 9 Months Ended |
Sep. 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 — Net Lease and Other Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2022 December 31, 2021 Land $ 2,320,763 $ 2,151,327 Buildings and improvements 10,525,449 9,525,858 Real estate under construction 16,211 114,549 Less: Accumulated depreciation (1,563,622) (1,448,020) $ 11,298,801 $ 10,343,714 As discussed in Note 3 , we acquired 39 consolidated properties subject to existing operating leases in the CPA:18 Merger, which increased the carrying value of our Land, buildings and improvements — net lease and other by $881.6 million during the nine months ended September 30, 2022. During the nine months ended September 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 13.9% to $0.9748 from $1.1326. As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements — net lease and other decreased by $601.1 million from December 31, 2021 to September 30, 2022. In connection with changes in lease classifications due to termination of the underlying leases, we reclassified two properties with an aggregate carrying value of $30.5 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements — net lease and other during the nine months ended September 30, 2022 ( Note 6 ). Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $76.0 million and $70.8 million for the three months ended September 30, 2022 and 2021, respectively, and $221.0 million and $207.2 million for the nine months ended September 30, 2022 and 2021, respectively. Acquisitions of Real Estate During the nine months ended September 30, 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions, and which excludes properties acquired in the CPA:18 Merger (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 Various, Spain (a) 5 7/21/2022 Retail 19,894 Various, United States 18 7/26/2022 Industrial; Warehouse 262,061 Various, Denmark (a) (b) 8 8/1/2022; 9/28/2022 Retail 29,644 Westlake, Ohio 1 8/3/2022 Warehouse 29,517 Hebron and Strongsville, Ohio; and Scarborough, Canada 3 8/10/2022 Industrial; Warehouse 20,111 Clifton Park, New York and West Des Moines, Iowa 2 8/12/2022 Specialty 23,317 Orzinuovi, Italy (a) 1 8/26/2022 Industrial 14,033 99 $ 1,022,819 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) We also entered into purchase agreements to acquire five additional retail facilities leased to this tenant totaling $17.7 million (based on the exchange rate of the Danish krone at September 30, 2022), which is expected to be completed in 2022. (c) We also committed to fund an additional $21.9 million for an expansion at the facility, which is expected to be completed in the third quarter of 2023. The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 129,005 Buildings and improvements 751,579 Intangible assets and liabilities: In-place lease (weighted-average expected life of 21.4 years) 133,327 Below-market rent (expected life of 6.8 years) (3,379) Right-of-use assets: Prepaid rent (a) 12,287 $ 1,022,819 __________ (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 nine months ended September 30, 2022, we capitalized real estate under construction totaling $127.3 million (including $78.3 million related to a student housing development project acquired in the CPA:18 Merger, as discussed below under Land, Buildings and Improvements — Operating Properties ). The number of construction projects in progress with balances included in real estate under construction was four and six as of September 30, 2022 and December 31, 2021, respectively. Aggregate unfunded commitments totaled approximately $38.2 million and $55.3 million as of September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 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 Wageningen, Netherlands (a) Build-to-Suit 1 7/7/2022 Research and Development 26,054 Radomsko, Poland (a) Expansion 1 8/1/2022 Industrial 23,042 5 $ 147,305 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. During the nine months ended September 30, 2022, we committed to fund two build-to-suit projects for outdoor advertising structures in New Jersey, for an aggregate amount of $3.6 million. We currently expect to complete the projects in the first quarter of 2023. Capitalized interest incurred during construction was $0.3 million and $0.6 million for the three months ended September 30, 2022 and 2021, respectively, and $1.3 million and $1.9 million for the nine months ended September 30, 2022 and 2021, respectively, which reduces Interest expense in the consolidated statements of income. Dispositions of Properties During the nine months ended September 30, 2022, we sold 14 properties, which were classified as Land, buildings and improvements — net lease and other. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $74.7 million from December 31, 2021 to September 30, 2022 ( Note 15 ). Lease Termination Income and Other 2022 — For the three and nine months ended September 30, 2022, lease termination income and other on our consolidated statements of income included: (i) lease termination income of $4.2 million received from a tenant during the third quarter of 2022, (ii) other lease-related settlements totaling $3.8 million and $10.0 million, respectively ; (iii) income from a parking garage attached to one of our net-leased properties totaling $0.2 million and $1.5 million, respectively, and (iv) lease termination income of $8.2 million received from a tenant during the nine months ended September 30, 2022. 2021 — For the three and nine months ended September 30, 2021, lease termination income and other on our consolidated statements of income included: (i) lease-related settlements totaling $0.8 million and $6.1 million, respectively; and (ii) income from a parking garage attached to one of our net-leased properties totaling $0.5 million and $1.4 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Lease income — fixed $ 295,433 $ 271,360 $ 852,843 $ 790,391 Lease income — variable (a) 36,469 27,256 101,138 81,954 Total operating lease income $ 331,902 $ 298,616 $ 953,981 $ 872,345 __________ (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. We assumed seven land lease arrangements in the CPA:18 Merger. As a result, we capitalized (i) right-of-use assets totaling $24.5 million (comprised of below-market ground lease intangibles totaling $17.9 million and land lease right-of-use assets totaling $6.6 million), which are included within In-place lease intangible assets and other on our consolidated balance sheets, and (ii) operating lease liabilities totaling $6.6 million, which are included within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets. Land, Buildings and Improvements — Operating Properties At September 30, 2022, Land, buildings and improvements — operating properties consisted of our investments in 75 consolidated self-storage properties, two consolidated student housing properties, and one consolidated hotel. We acquired 65 self-storage properties, one student housing property, and one student housing development project with an aggregate fair value of $1.0 billion in the CPA:18 Merger (including $78.3 million within real estate under construction) ( Note 3 ). In September 2022, we partially placed into service the student housing development project for total capitalized costs of $32.9 million. At December 31, 2021, Land, buildings and improvements — 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 — operating properties (in thousands): September 30, 2022 December 31, 2021 Land $ 122,317 $ 10,452 Buildings and improvements 916,866 73,221 Real estate under construction 45,341 — Less: Accumulated depreciation (22,118) (16,750) $ 1,062,406 $ 66,923 Depreciation expense on our buildings and improvements attributable to Operating real estate was $4.1 million and $0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $5.4 million and $2.1 million for the nine months ended September 30, 2022 and 2021, respectively. Assets Held for Sale, Net Below is a summary of our properties held for sale (in thousands): September 30, 2022 December 31, 2021 Land, buildings and improvements — net lease and other $ 31,111 $ 10,628 In-place lease intangible assets and other 7,296 — Above-market rent intangible assets 171 — Accumulated depreciation and amortization — (2,359) Assets held for sale, net $ 38,578 $ 8,269 At September 30, 2022, we had one property classified as Assets held for sale, net, with a carrying value of $38.6 million. We acquired two properties classified as Assets held for sale, net, with a fair value of $85.0 million in the CPA:18 Merger ( Note 3 ), one of which was sold in August 2022 ( Note 15 ). 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 | 9 Months Ended |
Sep. 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 September 30, 2022 December 31, 2021 Net investments in direct financing leases (a) 2022 – 2036 $ 515,662 $ 572,205 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 226,433 217,229 Secured loans receivable (c) 2022 – 2024 39,250 24,143 $ 781,345 $ 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 $2.1 million and $12.6 million as of September 30, 2022 and December 31, 2021, respectively. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): September 30, 2022 December 31, 2021 Lease payments receivable $ 338,733 $ 414,002 Unguaranteed residual value 485,790 545,896 824,523 959,898 Less: unearned income (302,930) (370,353) Less: allowance for credit losses (a) (5,931) (17,340) $ 515,662 $ 572,205 __________ (a) During both the nine months ended September 30, 2022 and 2021, we recorded a net release of allowance for credit losses of $6.7 million 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 nine months ended September 30, 2022, we reduced the allowance for credit losses balance by $4.7 million, in connection with the reclassifications of properties from Net investments in direct financing leases and loans receivable to Real estate, 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 $13.0 million and $15.6 million for the three months ended September 30, 2022 and 2021, respectively, and $40.2 million and $48.9 million for the nine months ended September 30, 2022 and 2021, respectively. As discussed in Note 3 , we acquired one consolidated property subject to a direct financing lease in the CPA:18 Merger, which increased the carrying value of our Net investments in direct financing leases and loans receivable by $10.5 million during the nine months ended September 30, 2022. During the nine months ended September 30, 2022, we reclassified two properties with an aggregate carrying value of $30.5 million from Net investments in direct financing leases and loans receivable to Real estate in connection with changes in lease classifications due to termination of the underlying leases. During the nine months ended September 30, 2022, the U.S. dollar strengthened against the euro, resulting in a $53.7 million decrease in the carrying value of Net investments in direct financing leases and loans receivable from December 31, 2021 to September 30, 2022. Loans Receivable During the nine months ended September 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. As discussed in Note 3 , we acquired one secured loan receivable in the CPA:18 Merger for $28.0 million, which pays interest at 10% per annum with a maturity date of July 2024. In September 2022, one of our secured loans receivable was repaid to us for $34.0 million. In connection with this repayment, we recorded a release of allowance for credit losses of $10.5 million since the loan principal was fully repaid. In addition, in the first quarter of 2021, we entered into an agreement with the borrowers for certain of our secured loans receivable, who agreed to pay us at maturity a total of $3.7 million of unpaid interest due over the previous year. In connection with the repayment of the secured loan receivable in September 2022, we collected $2.3 million of this interest, which was included in Income from direct financing leases and loans receivable on the consolidated statements of income for the three and nine months ended September 30, 2022. The remaining $1.4 million of unpaid interest is related to a secured loan receivable that we still own, and has not been recognized in the consolidated financial statements due to uncertainty of collectibility. Earnings from our loans receivable are included in Income from direct financing leases and loans receivable in the consolidated financial statements, and totaled $7.6 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively, and $16.6 million and $3.0 million for the nine months ended September 30, 2022 and 2021, respectively. 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 September 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 terminations noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the nine months ended September 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 1 – 3 19 17 $ 676,152 $ 703,280 4 8 9 113,224 140,230 5 — — — — $ 789,376 $ 843,510 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles 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. Net lease intangibles recorded in connection with property acquisitions during the nine months ended September 30, 2022 are described in Note 5 . In connection with the CPA:18 Merger ( Note 3 ), we recorded net lease intangibles comprised as follows (life in years, dollars in thousands): Weighted-Average Life Amount Finite-Lived Intangible Assets In-place lease 7.4 $ 199,913 Above-market rent 11.9 61,090 $ 261,003 Finite-Lived Intangible Liabilities Below-market rent 8.5 $ (16,836) In connection with certain business combinations, including the CPA:18 Merger ( Note 3 ), we recorded goodwill as a result of consideration exceeding the fair values of the assets acquired and liabilities assumed. The goodwill was attributed to our Real Estate reporting unit as it relates to the real estate assets we acquired in such business combinations. The following table presents a reconciliation of our goodwill (in thousands): Real Estate Investment Management Total Balance at January 1, 2022 $ 872,195 $ 29,334 $ 901,529 Acquisition of CPA:18 – Global ( Note 3 ) 172,346 — 172,346 Foreign currency translation adjustments (21,370) — (21,370) Impairment charges ( Note 9 ) — (29,334) (29,334) Balance at September 30, 2022 $ 1,023,171 $ — $ 1,023,171 Current accounting guidance requires that we test for the recoverability of goodwill at the reporting unit level. The test for recoverability must be conducted at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. In connection with the completion of the CPA:18 Merger in August 2022 ( Note 3 ), we performed a test for impairment during the third quarter of 2022 for goodwill recorded in both segments and recognized an impairment charge of $29.3 million on goodwill within our Investment Management segment ( Note 9 ). Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 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 $ 19,700 $ (19,040) $ 660 $ 19,553 $ (18,682) $ 871 Trade name — — — 3,975 (3,581) 394 19,700 (19,040) 660 23,528 (22,263) 1,265 Lease Intangibles: In-place lease 2,449,354 (983,045) 1,466,309 2,279,905 (934,663) 1,345,242 Above-market rent 840,943 (496,376) 344,567 843,410 (489,861) 353,549 3,290,297 (1,479,421) 1,810,876 3,123,315 (1,424,524) 1,698,791 Goodwill Goodwill 1,023,171 — 1,023,171 901,529 — 901,529 Total intangible assets $ 4,333,168 $ (1,498,461) $ 2,834,707 $ 4,048,372 $ (1,446,787) $ 2,601,585 Finite-Lived Intangible Liabilities Below-market rent $ (286,446) $ 118,272 $ (168,174) $ (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 $ (303,157) $ 118,272 $ (184,885) $ (289,194) $ 105,908 $ (183,286) During the nine months ended September 30, 2022, the U.S. dollar strengthened against the euro, resulting in a decrease of $96.7 million in the carrying value of our net intangible assets from December 31, 2021 to September 30, 2022. Net amortization of intangibles, including the effect of foreign currency translation, was $62.1 million and $55.2 million for the three months ended September 30, 2022 and 2021, respectively, and $165.6 million and $166.9 million for the nine months ended September 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 | 9 Months Ended |
Sep. 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 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 CPA:18 – Global (a) 100.000 % 5.578 % $ — $ 60,836 CPA:18 – Global operating partnership (a) 100.000 % 0.034 % — 209 CESH (b) 2.430 % 2.430 % 2,334 3,689 $ 2,334 $ 64,734 __________ (a) On August 1, 2022, we acquired all of the remaining interests in CPA:18 – Global and the CPA:18 – Global operating partnership in the CPA:18 Merger ( Note 3 ). (b) Investment is accounted for at fair value. CPA:18 – Global — We received distributions from this investment during the nine months ended September 30, 2022 and 2021 of $1.6 million and $1.4 million, respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the nine months ended September 30, 2022 and 2021 of $8.7 million and $4.9 million, respectively ( Note 4 ). 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 September 30, 2022 is based on the estimated fair value of our investment as of June 30, 2022. We received distributions from this investment during the nine months ended September 30, 2022 and 2021 of $1.2 million and $1.3 million, respectively. At December 31, 2021, the aggregate unamortized basis differences on our equity method investments in the Managed Programs were $23.3 million. Following the close of the CPA:18 Merger, there are no such unamortized basis differences on our equity method investments in the Managed Programs. 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 9 . 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 September 30, 2022 December 31, 2021 Existing Equity Method Investments Las Vegas Retail Complex (a) Third Party N/A $ 169,896 $ 104,114 Johnson Self Storage Third Party 90% 66,137 67,573 Kesko Senukai (b) Third Party 70% 34,554 41,955 Harmon Retail Corner (c) Third Party 15% 24,744 24,435 WLT (d) WLT N/A — 33,392 295,331 271,469 Equity Method Investments Consolidated After the CPA:18 Merger (e) State Farm Mutual Automobile Insurance Co. CPA:18 – Global 50% — 7,129 Apply Sørco AS (f) CPA:18 – Global 49% — 5,909 Bank Pekao (b) (g) CPA:18 – Global 50% — 4,460 Fortenova Grupa d.d. (b) CPA:18 – Global 20% — 2,936 — 20,434 $ 295,331 $ 291,903 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of September 30, 2022) for a retail complex in Las Vegas, Nevada. Through September 30, 2022, we funded $168.9 million, including $65.2 million during the nine months ended September 30, 2022. Equity income from this investment was $6.1 million and $1.6 million for the nine months ended September 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 model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) At September 30, 2022, we owned 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 9 ). WLT completed its previously announced sale to private real estate funds in October 2022 ( Note 17 ). (e) We acquired the remaining interests in these investments from CPA:18 – Global in the CPA:18 Merger, subsequent to which we now consolidate these wholly owned investments ( Note 3 ). (f) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (g) We recognized our $4.6 million proportionate share of an impairment charge recorded on this investment during the nine months ended September 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. We received aggregate distributions of $24.2 million and $14.1 million from our other unconsolidated real estate investments for the nine months ended September 30, 2022 and 2021, respectively. At September 30, 2022 and December 31, 2021, the aggregate unamortized basis differences on our unconsolidated real estate investments were $19.3 million and $7.9 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 10 ). 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 8 ). 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 $76.3 million during the nine months ended September 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 nine months ended September 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 September 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 nine months ended September 30, 2022, we received liquidating distributions from our investment in shares of GCIF totaling $1.7 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 $2.7 million and $4.3 million at September 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 13 ). 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 nine months ended September 30, 2022 and 2021, we received cash dividends of $0.9 million and $4.1 million, respectively, 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 nine months ended September 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 September 30, 2022. WLT completed its previously announced sale to private real estate funds in October 2022 ( Note 17 ). We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the nine months ended September 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): September 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 and 3 $ 5,651,865 $ 4,943,242 $ 5,701,913 $ 5,984,228 Non-recourse mortgages, net (a) (b) (d) 3 1,162,814 1,142,390 368,524 369,841 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 11 ) includes unamortized deferred financing costs of $26.3 million and $28.7 million at September 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 September 30, 2022 and December 31, 2021. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $24.4 million and $29.2 million at September 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $11.6 million and $0.8 million at September 30, 2022 and December 31, 2021, respectively. (c) For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ( Note 11 )), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category. (d) We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. We estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility ( Note 11 ), but excluding finance receivables ( Note 6 ), had fair values that approximated their carrying values at both September 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 September 30, 2022 2021 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Investment Management goodwill $ — $ 29,334 $ — $ — Real estate and intangibles — — 13,912 16,301 Equity method investments — — — — $ 29,334 $ 16,301 Nine Months Ended September 30, 2022 2021 Fair Value Impairment Fair Value Impairment Impairment Charges Investment Management goodwill $ — $ 29,334 $ — $ — Real estate and intangibles 24,497 26,385 13,912 16,301 Equity method investments — — 8,175 6,830 $ 55,719 $ 23,131 Impairment charges, and their related triggering events and fair value measurements, recognized during the three and nine months ended September 30, 2022 and 2021 were as follows: Investment Management Goodwill The impairment charges described below are reflected within Impairment charges — Investment Management goodwill in our consolidated statements of income. During the three and nine months ended September 30, 2022, we recognized an impairment charge of $29.3 million on goodwill within our Investment Management segment in order to reduce its carrying value to its estimated fair value of $0, since future Investment Management cash flows are expected to be minimal following the CPA:18 Merger ( Note 3 ). Real Estate and Intangibles The impairment charges described below are reflected within Impairment charges — real estate in our consolidated statements of income. During the nine months ended September 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 nine months ended September 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 nine months ended September 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%. During the three and nine months ended September 30, 2021, we recognized an impairment charge of $16.3 million on a property in order to reduce the carrying value of the property to its estimated fair value, due to the existing tenant’s non-renewal of its lease expiring in 2022. The fair value measurement was determined by estimating discounted cash flows using four significant unobservable inputs, which were the cash flow discount rate (range of 7.00% to 9.00%), terminal capitalization rate (range of 6.00% to 7.00%), estimated market rents (range of $10 to $11 per square foot), and estimated capital expenditures ($100 per square foot). We sold this property in September 2022. 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 nine months ended September 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 | 9 Months Ended |
Sep. 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 11 ) 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 September 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Foreign currency collars Other assets, net $ 62,583 $ 19,484 $ — $ — Interest rate swaps (a) Other assets, net 2,557 — — — Interest rate cap Other assets, net 15 1 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (1,311) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (908) 65,155 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 1,573 — — — 6,173 4,600 — — Total derivatives $ 71,328 $ 24,085 $ — $ (2,219) __________ (a) In connection with the CPA:18 Merger on August 1, 2022, we acquired five interest rate swaps, which had an aggregate fair value of $0.4 million on the date of acquisition. 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 September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency collars $ 20,756 $ 12,666 $ 44,410 $ 26,294 Interest rate swaps 1,663 203 3,019 3,851 Interest rate caps 11 1 16 5 Total $ 22,430 $ 12,870 $ 47,445 $ 30,150 Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 4,987 $ 14 $ 10,450 $ (553) Interest rate swaps and caps (b) Interest expense (66) (196) (352) (720) Total $ 4,921 $ (182) $ 10,098 $ (1,273) __________ (a) Excludes net gains of $1.2 million and $0.2 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2022 and 2021, respectively, and net gains of $3.5 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. (b) Amount for the nine months ended September 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 September 30, 2022, we estimate that an additional $1.5 million and $26.4 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 3,737 $ 357 $ 7,520 $ 516 Interest rate swaps Interest expense 56 223 387 1,354 Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 447 — 1,573 — Stock warrants Other gains and (losses) — — — (500) Total $ 4,240 $ 580 $ 9,480 $ 1,370 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 September 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 5 35,176 USD $ 1,410 Interest rate swaps 2 46,277 EUR 1,147 Interest rate cap 1 10,530 EUR 15 $ 2,572 __________ (a) Fair value amounts are based on the exchange rate of the euro at September 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 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 September 30, 2022 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at September 30, 2022 Designated as Cash Flow Hedging Instruments Foreign currency collars 71 280,600 EUR $ 51,271 Foreign currency collars 77 49,820 GBP 11,312 Not Designated as Cash Flow Hedging Instruments Foreign currency collar 1 10,600 EUR 1,573 $ 64,156 Credit Risk-Related Contingent Features We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of September 30, 2022. At September 30, 2022, our total credit exposure and the maximum exposure to any single counterparty was $67.3 million and $11.2 million, respectively. Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At September 30, 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 September 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 11 ) 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 $215.0 million and $92.6 million for the three months ended September 30, 2022 and 2021, respectively, and $528.4 million and $190.5 million for the nine months ended September 30, 2022 and 2021, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 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 September 30, 2022, our Unsecured Revolving Credit Facility had available capacity of approximately $1.3 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 September 30, 2022 (a) Maturity Date at September 30, 2022 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2022 December 31, 2021 Unsecured Term Loans: Term Loan — borrowing in British pounds sterling (b) (c) (d) SONIA + 0.85% 2/20/2025 $ 298,070 $ 202,183 Delayed Draw Term Loan — borrowing in euros (e) EURIBOR + 0.85% 2/20/2025 209,582 109,296 507,652 311,479 Unsecured Revolving Credit Facility: Borrowing in U.S. dollars (f) LIBOR + 0.775% 2/20/2025 446,000 — Borrowing in Japanese yen (g) TIBOR + 0.775% 2/20/2025 16,660 20,935 Borrowing in euros N/A 2/20/2025 — 205,001 Borrowing in British pounds sterling N/A 2/20/2025 — 184,660 462,660 410,596 $ 970,312 $ 722,075 __________ (a) The applicable interest rate at September 30, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa1. (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 $1.6 million and $0.9 million at September 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 $5.7 billion at September 30, 2022 (the “Senior Unsecured Notes”). On September 28, 2022, we completed a private placement of (i) €150.0 million of 3.41% Senior Notes due 2029, which have a 7-year term and are scheduled to mature on September 28, 2029, and (ii) €200 million of 3.70% Senior Notes due 2032, which have a 10-year term and are scheduled to mature on September 28, 2032. 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 nine months ended September 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 September 30, 2022 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date September 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 487,400 566,300 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 487,400 566,300 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 487,400 566,300 1.350% Senior Notes due 2028 9/19/2019 € 500,000 1.350 % 4/15/2028 487,400 566,300 3.850% Senior Notes due 2029 6/14/2019 $ 325,000 3.850 % 7/15/2029 325,000 325,000 3.41% Senior Notes due 2029 9/28/2022 € 150,000 3.41 % 9/28/2029 146,220 — 0.950% Senior Notes due 2030 3/8/2021 € 525,000 0.950 % 6/1/2030 511,770 594,615 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 3.70% Senior Notes due 2032 9/28/2022 € 200,000 3.70 % 9/28/2032 194,960 — 2.250% Senior Notes due 2033 2/25/2021 $ 425,000 2.250 % 4/1/2033 425,000 425,000 $ 5,702,550 $ 5,759,815 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $26.3 million and $28.7 million, and unamortized discount totaling $24.4 million and $29.2 million, at September 30, 2022 and December 31, 2021, respectively. In connection with the private placement of the 3.41% Senior Notes due 2029 and the €200 million of 3.70% Senior Notes due 2032 in September 2022, we incurred financing costs totaling $2.3 million during the nine months ended September 30, 2022, which are included in the Senior Unsecured Notes, net in the consolidated financial statements and are being amortized to Interest expense over the term of their respective Senior Notes. 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 September 30, 2022. Non-Recourse Mortgages At September 30, 2022, the weighted-average interest rate for our total non-recourse mortgage notes payable was 4.3% (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.4% and 3.9%, respectively), with maturity dates ranging from October 2022 to April 2039. CPA:18 Merger In connection with the CPA:18 Merger on August 1, 2022 ( Note 3 ), we assumed property-level debt comprised of non-recourse mortgage loans with fair values totaling $900.2 million and recorded an aggregate fair market value net discount of $13.1 million. The fair market value net discount will be amortized to interest expense over the remaining lives of the related loans. These non-recourse mortgage loans had a weighted-average annual interest rate of 5.1% on the merger date. Repayments During the nine months ended September 30, 2022, we (i) prepaid a non-recourse mortgage loan of $10.4 million and (ii) repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $35.6 million. We recognized a net gain on extinguishment of debt of $1.3 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 4.6%. During the nine months ended September 30, 2021, we (i) prepaid non-recourse mortgage loans totaling $427.5 million and (ii) repaid non-recourse mortgage loans at maturity with an aggregate principal balance of approximately $27.5 million. We recognized an aggregate net loss on extinguishment of debt of $32.0 million on these repayments, primarily comprised of prepayment penalties totaling $32.1 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 nine months ended September 30, 2022, the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $579.1 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 September 30, 2022. Scheduled Debt Principal Payments Scheduled debt principal payments as of September 30, 2022 are as follows (in thousands): Years Ending December 31, Total 2022 (remainder) $ 96,744 2023 428,242 2024 1,161,427 2025 1,769,956 2026 959,287 Thereafter through 2039 3,431,674 Total principal payments 7,847,330 Unamortized discount, net (37,597) Unamortized deferred financing costs (26,390) Total $ 7,783,343 Certain amounts in the table above are based on the applicable foreign currency exchange rate at September 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesAt September 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 | 9 Months Ended |
Sep. 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 nine months ended September 30, 2022. We recorded stock-based compensation expense of $5.5 million and $4.4 million during the three months ended September 30, 2022 and 2021, respectively, and $23.1 million and $18.8 million during the nine months ended September 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 September 30, 2022 and changes during the nine months ended September 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) 229,497 80.35 144,311 104.97 Vested (b) (154,028) 72.80 (165,615) 92.16 Forfeited (5,546) 76.44 — — Adjustment (c) — — 84,248 88.78 Nonvested at September 30, 2022 (d) 376,917 $ 76.04 461,199 $ 92.00 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 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 nine months ended September 30, 2022 was $26.5 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 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 September 30, 2022 to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2022, total unrecognized compensation expense related to these awards was approximately $39.2 million, with an aggregate weighted-average remaining term of 2.0 years. Earnings Per Share The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income — basic and diluted $ 104,928 $ 138,547 $ 389,601 $ 310,426 Weighted-average shares outstanding — basic 203,093,553 185,422,639 196,382,433 180,753,115 Effect of dilutive securities 1,004,563 589,839 882,076 570,013 Weighted-average shares outstanding — diluted 204,098,116 186,012,478 197,264,509 181,323,128 For the three and nine months ended September 30, 2022 and 2021, potentially dilutive securities excluded from the computation of diluted earnings per share were insignificant. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock issued — — 2,740,295 4,225,624 Weighted-average price per share $ — $ — $ 80.79 $ 72.50 Net proceeds $ — $ — $ 218,081 $ 302,506 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 September 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 2,587,500 ATM Forwards (e) 5/2/2022 5,538,037 84.81 469,697 5,538,037 8,125,537 __________ (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 and third quarters 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock delivered 1,337,500 2,012,500 1,337,500 6,535,709 Net proceeds $ 97,456 $ 147,363 $ 97,456 $ 457,227 Reclassifications Out of Accumulated Other Comprehensive Loss The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands): Three Months Ended September 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 43,693 $ (309,850) $ — $ (266,157) Other comprehensive loss before reclassifications 28,531 (56,053) — (27,522) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (4,987) — — (4,987) Interest expense 66 — — 66 Total (4,921) — — (4,921) Net current period other comprehensive loss 23,610 (56,053) — (32,443) Net current period other comprehensive loss attributable to noncontrolling interests — 543 — 543 Ending balance $ 67,303 $ (365,360) $ — $ (298,057) Three Months Ended September 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ (1,062) $ (228,898) $ — $ (229,960) Other comprehensive loss before reclassifications 12,932 (20,400) — (7,468) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 196 — — 196 Non-operating income (14) — — (14) Total 182 — — 182 Net current period other comprehensive loss 13,114 (20,400) — (7,286) Ending balance $ 12,052 $ (249,298) $ — $ (237,246) Nine Months Ended September 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 61,054 (109,198) — (48,144) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (10,450) — — (10,450) Interest expense 352 — — 352 Other gains and (losses) ( Note 9 ) — — (18,688) (18,688) Total (10,098) — (18,688) (28,786) Net current period other comprehensive loss 50,956 (109,198) (18,688) (76,930) Net current period other comprehensive loss attributable to noncontrolling interests — 543 — 543 Ending balance $ 67,303 $ (365,360) $ — $ (298,057) Nine Months Ended September 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 29,737 (28,329) — 1,408 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 720 — — 720 Non-operating income 553 — — 553 Total 1,273 — — 1,273 Net current period other comprehensive income 31,010 (28,329) — 2,681 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ 12,052 $ (249,298) $ — $ (237,246) See Note 10 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented. Dividends Declared During the third quarter of 2022, our Board declared a quarterly dividend of $1.061 per share, which was paid on October 14, 2022 to stockholders of record as of September 30, 2022. During the nine months ended September 30, 2022, we declared dividends totaling $3.177 per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 nine months ended September 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 nine months ended September 30, 2022 and 2021. |
Property Dispositions
Property Dispositions | 9 Months Ended |
Sep. 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 5 . 2022 — During the three and nine months ended September 30, 2022, we sold three and 17 properties, respectively, for total proceeds, net of selling costs, of $55.2 million and $170.3 million, respectively, and recognized a net (loss) gain on these sales totaling $(4.7) million and $37.6 million, respectively (inclusive of income taxes totaling $2.8 million and $2.9 million for the three and nine months ended September 30, 2022, respectively, recognized upon sale). This disposition activity included one property acquired in the CPA:18 Merger classified as assets held for sale ( Note 3 , Note 5 ), which was sold in August 2022. 2021 — During the three and nine months ended September 30, 2021, we sold five and 17 properties, respectively, for total proceeds, net of selling costs, of $28.3 million and $126.7 million, respectively, and recognized a net gain on these sales totaling $1.7 million and $30.9 million, respectively (inclusive of income taxes totaling $3.8 million recognized upon sale during the nine months ended September 30, 2021). |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Lease revenues $ 331,902 $ 298,616 $ 953,981 $ 872,345 Income from direct financing leases and loans receivable 20,637 16,754 56,794 51,917 Operating property revenues (a) 21,350 4,050 30,279 9,474 Lease termination income and other 8,192 1,421 24,905 8,066 382,081 320,841 1,065,959 941,802 Operating Expenses Depreciation and amortization 132,181 115,657 362,654 340,327 General and administrative 22,299 19,750 66,224 62,297 Reimbursable tenant costs 18,874 15,092 52,538 45,942 Merger and other expenses 17,667 (908) 17,326 (3,998) Property expenses, excluding reimbursable tenant costs 11,244 13,734 36,874 36,432 Operating property expenses 9,357 3,001 15,335 6,961 Stock-based compensation expense 5,511 4,361 23,102 18,790 Impairment charges — real estate — 16,301 26,385 16,301 217,133 186,988 600,438 523,052 Other Income and Expenses Interest expense (59,022) (48,731) (151,492) (149,623) Other gains and (losses) (13,960) 48,172 303 13,455 Gain on change in control of interests 11,405 — 11,405 — Non-operating income 9,264 1,283 23,781 10,620 Earnings (losses) from equity method investments in real estate 6,447 2,445 10,189 (10,528) (Loss) gain on sale of real estate, net (4,736) 1,702 37,631 30,914 (50,602) 4,871 (68,183) (105,162) Income before income taxes 114,346 138,724 397,338 313,588 Provision for income taxes (3,631) (7,827) (16,499) (23,372) Net Income from Real Estate 110,715 130,897 380,839 290,216 Net loss (income) attributable to noncontrolling interests 660 (39) 622 (84) Net Income from Real Estate Attributable to W. P. Carey $ 111,375 $ 130,858 $ 381,461 $ 290,132 Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Asset management and other revenue $ 1,197 $ 3,872 $ 8,084 $ 11,792 Reimbursable costs from affiliates 344 1,041 2,414 3,050 1,541 4,913 10,498 14,842 Operating Expenses Impairment charges — Investment Management goodwill 29,334 — 29,334 — Reimbursable costs from affiliates 344 1,041 2,414 3,050 Merger and other expenses — — 3 15 29,678 1,041 31,751 3,065 Other Income and Expenses Gain on change in control of interests 22,526 — 22,526 — Earnings from equity method investments in the Managed Programs 4,857 3,290 13,288 6,374 Other gains and (losses) (1,060) 1,047 (1,324) 2,121 Non-operating (loss) income (1) — 2 84 26,322 4,337 34,492 8,579 (Loss) income before income taxes (1,815) 8,209 13,239 20,356 Provision for income taxes (4,632) (520) (5,099) (62) Net (Loss) Income from Investment Management Attributable to W. P. Carey $ (6,447) $ 7,689 $ 8,140 $ 20,294 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues $ 383,622 $ 325,754 $ 1,076,457 $ 956,644 Operating expenses 246,811 188,029 632,189 526,117 Other income and (expenses) (24,280) 9,208 (33,691) (96,583) Provision for income taxes (8,263) (8,347) (21,598) (23,434) Net loss (income) attributable to noncontrolling interests 660 (39) 622 (84) Net income attributable to W. P. Carey $ 104,928 $ 138,547 $ 389,601 $ 310,426 Total Assets at September 30, 2022 December 31, 2021 Real Estate $ 17,747,813 $ 15,344,799 Investment Management (b) 27,029 135,831 Total Company $ 17,774,842 $ 15,480,630 __________ (a) Operating property revenues from our hotels include $3.7 million and $2.4 million for the three months ended September 30, 2022 and 2021, respectively, and $9.1 million and $4.9 million for the nine months ended September 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). (b) Following the CPA:18 Merger on August 1, 2022, we no longer own an equity investment in CPA:18 – Global, which was previously included within our Investment Management segment ( N ote 3 , Note 8 ). In addition, during the nine months ended September 30, 2022, we recorded an impairment charge of $29.3 million on goodwill within our Investment Management segment ( Note 7 , Note 9 ). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Received for Shares of WLT In October 2022, we received $82.6 million in cash proceeds as a result of certain private real estate funds’ acquisition of all outstanding shares of WLT common stock. As of the date of acquisition, we owned 12,208,243 shares of WLT common stock ( Note 9 ). Upon completion of this transaction, we have no remaining interest in WLT. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 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. Upon the closing of the CPA:18 Merger, we acquired five consolidated VIEs and declassified three entities as VIEs. At September 30, 2022 and December 31, 2021, we considered 16 and 14 entities to be VIEs, respectively, of which we consolidated 11 and six, respectively, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands): September 30, 2022 December 31, 2021 Land, buildings and improvements — net lease and other $ 606,459 $ 426,831 Land, buildings and improvements — operating properties 105,883 — Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 71,017 42,884 Above-market rent intangible assets 33,414 26,720 Accumulated depreciation and amortization (168,802) (154,413) Total assets 823,378 500,884 Non-recourse mortgages, net $ 157,044 $ 1,485 Below-market rent and other intangible liabilities, net 19,318 20,568 Total liabilities 224,509 46,302 |
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. We currently present Land, buildings and improvements — net lease and other and Land, buildings and improvements — operating properties on separate line items in the consolidated balance sheets. Previously, land, buildings and improvements attributable to net lease properties and operating properties were aggregated within Land, buildings and improvements in the consolidated balance sheets ( Note 5 ). |
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 6 ), 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) | 9 Months Ended |
Sep. 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): September 30, 2022 December 31, 2021 Land, buildings and improvements — net lease and other $ 606,459 $ 426,831 Land, buildings and improvements — operating properties 105,883 — Net investments in direct financing leases and loans receivable 144,103 144,103 In-place lease intangible assets and other 71,017 42,884 Above-market rent intangible assets 33,414 26,720 Accumulated depreciation and amortization (168,802) (154,413) Total assets 823,378 500,884 Non-recourse mortgages, net $ 157,044 $ 1,485 Below-market rent and other intangible liabilities, net 19,318 20,568 Total liabilities 224,509 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): September 30, 2022 December 31, 2021 Cash and cash equivalents $ 186,417 $ 165,427 Restricted cash (a) 63,596 52,523 Total cash and cash equivalents and restricted cash $ 250,013 $ 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): September 30, 2022 December 31, 2021 Cash and cash equivalents $ 186,417 $ 165,427 Restricted cash (a) 63,596 52,523 Total cash and cash equivalents and restricted cash $ 250,013 $ 217,950 __________ (a) Restricted cash is included within Other assets, net on our consolidated balance sheets. |
Merger with CPA_18 _ Global (Ta
Merger with CPA:18 – Global (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Consideration and Estimated Fair Values of the Assets Acquired and Liabilities Assumed in the Acquisition | The purchase price was allocated to the assets acquired and liabilities assumed, based upon their preliminary fair values at August 1, 2022. The following tables summarize the preliminary consideration and estimated fair values of the assets acquired and liabilities assumed in the acquisition, based on the current best estimate of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Investments in land, buildings and improvements, net investments in direct financing leases, non-recourse mortgages, and noncontrolling interests were based on preliminary valuation data and estimates. Preliminary Purchase Price Allocation (in thousands) Total Consideration Fair value of W. P. Carey shares of common stock issued $ 1,205,750 Cash consideration paid 423,297 Cash paid for fractional shares 138 Merger Consideration 1,629,185 Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger 88,299 Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger 28,574 $ 1,746,058 |
Preliminary Purchase Price Allocation | Preliminary Purchase Price Allocation (in thousands) Assets Land, buildings and improvements — net lease and other $ 881,613 Land, buildings and improvements — operating properties 1,000,447 Net investments in direct financing leases and loans receivable 38,517 In-place lease and other intangible assets 224,458 Above-market rent intangible assets 61,090 Assets held for sale 85,026 Cash and cash equivalents and restricted cash 331,063 Other assets, net (excluding restricted cash) 25,229 Total assets 2,647,443 Liabilities Non-recourse mortgages, net 900,173 Accounts payable, accrued expenses and other liabilities 90,035 Below-market rent and other intangible liabilities 16,836 Deferred income taxes 52,320 Total liabilities 1,059,364 Total identifiable net assets 1,588,079 Noncontrolling interests (14,367) Goodwill 172,346 $ 1,746,058 |
Pro forma Financial Information | The following consolidated pro forma financial information has been presented as if the CPA:18 Merger had occurred on January 1, 2021 for the three and nine months ended September 30, 2022 and 2021. The pro forma financial information is not necessarily indicative of what the actual results would have been had the CPA:18 Merger on that date, nor does it purport to represent the results of operations for future periods. (in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Pro forma total revenues $ 397,915 $ 372,498 $ 1,187,887 $ 1,089,031 |
Agreements and Transactions w_2
Agreements and Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Distributions of Available Cash (a) $ 3,345 $ 1,623 $ 8,746 $ 4,949 Asset management revenue (b) (c) 1,197 3,872 8,084 11,792 Reimbursable costs from affiliates (b) 344 1,041 2,414 3,050 Interest income on deferred acquisition fees and loans to affiliates (d) 4 57 112 121 $ 4,890 $ 6,593 $ 19,356 $ 19,912 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 CPA:18 – Global $ 4,466 $ 5,608 $ 17,854 $ 16,578 CESH 424 909 1,502 3,054 WLT (reimbursed transition services) — 76 — 280 $ 4,890 $ 6,593 $ 19,356 $ 19,912 __________ (a) Included within Earnings (losses) from equity method investments in the consolidated statements of income. Amounts for the three and nine months ended September 30, 2022 reflect an additional month of activity as compared to the prior year periods, since the CPA:18 Merger closed on August 1, 2022 and distributions of Available Cash are paid on a quarter lag. (b) Amounts represent revenues from contracts under ASC 606. (c) Included within Asset management and other revenue 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): September 30, 2022 December 31, 2021 Asset management fees receivable $ 352 $ 494 Accounts receivable 159 336 Reimbursable costs 91 974 Current acquisition fees receivable — 19 Deferred acquisition fees receivable, including accrued interest — 3 $ 602 $ 1,826 |
Schedule of related party fees | The following table presents a summary of our asset management fee arrangements with the 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 from March 1, 2022 to August 1, 2022 (the date of the completion of the CPA:18 Merger) Rate depended on the type of investment and was 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) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of real estate | Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands): September 30, 2022 December 31, 2021 Land $ 2,320,763 $ 2,151,327 Buildings and improvements 10,525,449 9,525,858 Real estate under construction 16,211 114,549 Less: Accumulated depreciation (1,563,622) (1,448,020) $ 11,298,801 $ 10,343,714 The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands): Total Capitalized Costs Land $ 129,005 Buildings and improvements 751,579 Intangible assets and liabilities: In-place lease (weighted-average expected life of 21.4 years) 133,327 Below-market rent (expected life of 6.8 years) (3,379) Right-of-use assets: Prepaid rent (a) 12,287 $ 1,022,819 __________ (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. September 30, 2022 December 31, 2021 Land $ 122,317 $ 10,452 Buildings and improvements 916,866 73,221 Real estate under construction 45,341 — Less: Accumulated depreciation (22,118) (16,750) $ 1,062,406 $ 66,923 |
Schedule of real estate acquired | During the nine months ended September 30, 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions, and which excludes properties acquired in the CPA:18 Merger (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 Various, Spain (a) 5 7/21/2022 Retail 19,894 Various, United States 18 7/26/2022 Industrial; Warehouse 262,061 Various, Denmark (a) (b) 8 8/1/2022; 9/28/2022 Retail 29,644 Westlake, Ohio 1 8/3/2022 Warehouse 29,517 Hebron and Strongsville, Ohio; and Scarborough, Canada 3 8/10/2022 Industrial; Warehouse 20,111 Clifton Park, New York and West Des Moines, Iowa 2 8/12/2022 Specialty 23,317 Orzinuovi, Italy (a) 1 8/26/2022 Industrial 14,033 99 $ 1,022,819 __________ (a) Amount reflects the applicable exchange rate on the date of transaction. (b) We also entered into purchase agreements to acquire five additional retail facilities leased to this tenant totaling $17.7 million (based on the exchange rate of the Danish krone at September 30, 2022), which is expected to be completed in 2022. (c) We also committed to fund an additional $21.9 million for an expansion at the facility, which is expected to be completed in the third quarter of 2023. |
Schedule of real estate under construction | During the nine months ended September 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 Wageningen, Netherlands (a) Build-to-Suit 1 7/7/2022 Research and Development 26,054 Radomsko, Poland (a) Expansion 1 8/1/2022 Industrial 23,042 5 $ 147,305 __________ (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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Lease income — fixed $ 295,433 $ 271,360 $ 852,843 $ 790,391 Lease income — variable (a) 36,469 27,256 101,138 81,954 Total operating lease income $ 331,902 $ 298,616 $ 953,981 $ 872,345 __________ (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): September 30, 2022 December 31, 2021 Land, buildings and improvements — net lease and other $ 31,111 $ 10,628 In-place lease intangible assets and other 7,296 — Above-market rent intangible assets 171 — Accumulated depreciation and amortization — (2,359) Assets held for sale, net $ 38,578 $ 8,269 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 December 31, 2021 Net investments in direct financing leases (a) 2022 – 2036 $ 515,662 $ 572,205 Sale-leaseback transactions accounted for as loans receivable (b) 2038 – 2052 226,433 217,229 Secured loans receivable (c) 2022 – 2024 39,250 24,143 $ 781,345 $ 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 $2.1 million and $12.6 million as of September 30, 2022 and December 31, 2021, respectively. Net Investments in Direct Financing Leases Net investments in direct financing leases is summarized as follows (in thousands): September 30, 2022 December 31, 2021 Lease payments receivable $ 338,733 $ 414,002 Unguaranteed residual value 485,790 545,896 824,523 959,898 Less: unearned income (302,930) (370,353) Less: allowance for credit losses (a) (5,931) (17,340) $ 515,662 $ 572,205 __________ (a) During both the nine months ended September 30, 2022 and 2021, we recorded a net release of allowance for credit losses of $6.7 million 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 nine months ended September 30, 2022, we reduced the allowance for credit losses balance by $4.7 million, in connection with the reclassifications of properties from Net investments in direct financing leases and loans receivable to Real estate, as described below. |
Sales-leaseback | During the nine months ended September 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 1 – 3 19 17 $ 676,152 $ 703,280 4 8 9 113,224 140,230 5 — — — — $ 789,376 $ 843,510 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Liabilities Disclosure [Abstract] | |
Schedule of net lease intangibles | Net lease intangibles recorded in connection with property acquisitions during the nine months ended September 30, 2022 are described in Note 5 . In connection with the CPA:18 Merger ( Note 3 ), we recorded net lease intangibles comprised as follows (life in years, dollars in thousands): Weighted-Average Life Amount Finite-Lived Intangible Assets In-place lease 7.4 $ 199,913 Above-market rent 11.9 61,090 $ 261,003 Finite-Lived Intangible Liabilities Below-market rent 8.5 $ (16,836) |
Schedule of reconciliation goodwill | The goodwill was attributed to our Real Estate reporting unit as it relates to the real estate assets we acquired in such business combinations. The following table presents a reconciliation of our goodwill (in thousands): Real Estate Investment Management Total Balance at January 1, 2022 $ 872,195 $ 29,334 $ 901,529 Acquisition of CPA:18 – Global ( Note 3 ) 172,346 — 172,346 Foreign currency translation adjustments (21,370) — (21,370) Impairment charges ( Note 9 ) — (29,334) (29,334) Balance at September 30, 2022 $ 1,023,171 $ — $ 1,023,171 |
Schedule of intangible assets And goodwill | Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands): September 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 $ 19,700 $ (19,040) $ 660 $ 19,553 $ (18,682) $ 871 Trade name — — — 3,975 (3,581) 394 19,700 (19,040) 660 23,528 (22,263) 1,265 Lease Intangibles: In-place lease 2,449,354 (983,045) 1,466,309 2,279,905 (934,663) 1,345,242 Above-market rent 840,943 (496,376) 344,567 843,410 (489,861) 353,549 3,290,297 (1,479,421) 1,810,876 3,123,315 (1,424,524) 1,698,791 Goodwill Goodwill 1,023,171 — 1,023,171 901,529 — 901,529 Total intangible assets $ 4,333,168 $ (1,498,461) $ 2,834,707 $ 4,048,372 $ (1,446,787) $ 2,601,585 Finite-Lived Intangible Liabilities Below-market rent $ (286,446) $ 118,272 $ (168,174) $ (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 $ (303,157) $ 118,272 $ (184,885) $ (289,194) $ 105,908 $ (183,286) |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 CPA:18 – Global (a) 100.000 % 5.578 % $ — $ 60,836 CPA:18 – Global operating partnership (a) 100.000 % 0.034 % — 209 CESH (b) 2.430 % 2.430 % 2,334 3,689 $ 2,334 $ 64,734 __________ (a) On August 1, 2022, we acquired all of the remaining interests in CPA:18 – Global and the CPA:18 – Global operating partnership in the CPA:18 Merger ( Note 3 ). (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 September 30, 2022 December 31, 2021 Existing Equity Method Investments Las Vegas Retail Complex (a) Third Party N/A $ 169,896 $ 104,114 Johnson Self Storage Third Party 90% 66,137 67,573 Kesko Senukai (b) Third Party 70% 34,554 41,955 Harmon Retail Corner (c) Third Party 15% 24,744 24,435 WLT (d) WLT N/A — 33,392 295,331 271,469 Equity Method Investments Consolidated After the CPA:18 Merger (e) State Farm Mutual Automobile Insurance Co. CPA:18 – Global 50% — 7,129 Apply Sørco AS (f) CPA:18 – Global 49% — 5,909 Bank Pekao (b) (g) CPA:18 – Global 50% — 4,460 Fortenova Grupa d.d. (b) CPA:18 – Global 20% — 2,936 — 20,434 $ 295,331 $ 291,903 __________ (a) On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $261.9 million (as of September 30, 2022) for a retail complex in Las Vegas, Nevada. Through September 30, 2022, we funded $168.9 million, including $65.2 million during the nine months ended September 30, 2022. Equity income from this investment was $6.1 million and $1.6 million for the nine months ended September 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 model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement. (d) At September 30, 2022, we owned 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 9 ). WLT completed its previously announced sale to private real estate funds in October 2022 ( Note 17 ). (e) We acquired the remaining interests in these investments from CPA:18 – Global in the CPA:18 Merger, subsequent to which we now consolidate these wholly owned investments ( Note 3 ). (f) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. (g) We recognized our $4.6 million proportionate share of an impairment charge recorded on this investment during the nine months ended September 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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): September 30, 2022 December 31, 2021 Level Carrying Value Fair Value Carrying Value Fair Value Senior Unsecured Notes, net (a) (b) (c) 2 and 3 $ 5,651,865 $ 4,943,242 $ 5,701,913 $ 5,984,228 Non-recourse mortgages, net (a) (b) (d) 3 1,162,814 1,142,390 368,524 369,841 __________ (a) The carrying value of Senior Unsecured Notes, net ( Note 11 ) includes unamortized deferred financing costs of $26.3 million and $28.7 million at September 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 September 30, 2022 and December 31, 2021. (b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $24.4 million and $29.2 million at September 30, 2022 and December 31, 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $11.6 million and $0.8 million at September 30, 2022 and December 31, 2021, respectively. (c) For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ( Note 11 )), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category. (d) We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity. |
Schedule of fair value impairment charges using unobservable inputs nonrecurring basis | The following tables present information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands): Three Months Ended September 30, 2022 2021 Fair Value Measurements Impairment Charges Fair Value Measurements Impairment Charges Impairment Charges Investment Management goodwill $ — $ 29,334 $ — $ — Real estate and intangibles — — 13,912 16,301 Equity method investments — — — — $ 29,334 $ 16,301 Nine Months Ended September 30, 2022 2021 Fair Value Impairment Fair Value Impairment Impairment Charges Investment Management goodwill $ — $ 29,334 $ — $ — Real estate and intangibles 24,497 26,385 13,912 16,301 Equity method investments — — 8,175 6,830 $ 55,719 $ 23,131 |
Risk Management and Use of De_2
Risk Management and Use of Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Foreign currency collars Other assets, net $ 62,583 $ 19,484 $ — $ — Interest rate swaps (a) Other assets, net 2,557 — — — Interest rate cap Other assets, net 15 1 — — Foreign currency collars Accounts payable, accrued expenses and other liabilities — — — (1,311) Interest rate swaps Accounts payable, accrued expenses and other liabilities — — — (908) 65,155 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 1,573 — — — 6,173 4,600 — — Total derivatives $ 71,328 $ 24,085 $ — $ (2,219) __________ (a) In connection with the CPA:18 Merger on August 1, 2022, we acquired five interest rate swaps, which had an aggregate fair value of $0.4 million on the date of acquisition. |
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 September 30, Nine Months Ended September 30, Derivatives in Cash Flow Hedging Relationships 2022 2021 2022 2021 Foreign currency collars $ 20,756 $ 12,666 $ 44,410 $ 26,294 Interest rate swaps 1,663 203 3,019 3,851 Interest rate caps 11 1 16 5 Total $ 22,430 $ 12,870 $ 47,445 $ 30,150 Amount of Gain (Loss) on Derivatives Reclassified from Derivatives in Cash Flow Hedging Relationships Location of Gain (Loss) Recognized in Income Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 4,987 $ 14 $ 10,450 $ (553) Interest rate swaps and caps (b) Interest expense (66) (196) (352) (720) Total $ 4,921 $ (182) $ 10,098 $ (1,273) __________ (a) Excludes net gains of $1.2 million and $0.2 million recognized on unconsolidated jointly owned investments for the three months ended September 30, 2022 and 2021, respectively, and net gains of $3.5 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. (b) Amount for the nine months ended September 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Foreign currency collars Non-operating income $ 3,737 $ 357 $ 7,520 $ 516 Interest rate swaps Interest expense 56 223 387 1,354 Derivatives Not in Cash Flow Hedging Relationships Foreign currency collars Other gains and (losses) 447 — 1,573 — Stock warrants Other gains and (losses) — — — (500) Total $ 4,240 $ 580 $ 9,480 $ 1,370 |
Schedule of derivative instruments | The interest rate swaps and caps that our consolidated subsidiaries had outstanding at September 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 5 35,176 USD $ 1,410 Interest rate swaps 2 46,277 EUR 1,147 Interest rate cap 1 10,530 EUR 15 $ 2,572 __________ (a) Fair value amounts are based on the exchange rate of the euro at September 30, 2022, as applicable. The following table presents the foreign currency collars that we had outstanding at September 30, 2022 (currency in thousands): Foreign Currency Derivatives Number of Instruments Notional Fair Value at September 30, 2022 Designated as Cash Flow Hedging Instruments Foreign currency collars 71 280,600 EUR $ 51,271 Foreign currency collars 77 49,820 GBP 11,312 Not Designated as Cash Flow Hedging Instruments Foreign currency collar 1 10,600 EUR 1,573 $ 64,156 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 (a) Maturity Date at September 30, 2022 Principal Outstanding Balance at Senior Unsecured Credit Facility September 30, 2022 December 31, 2021 Unsecured Term Loans: Term Loan — borrowing in British pounds sterling (b) (c) (d) SONIA + 0.85% 2/20/2025 $ 298,070 $ 202,183 Delayed Draw Term Loan — borrowing in euros (e) EURIBOR + 0.85% 2/20/2025 209,582 109,296 507,652 311,479 Unsecured Revolving Credit Facility: Borrowing in U.S. dollars (f) LIBOR + 0.775% 2/20/2025 446,000 — Borrowing in Japanese yen (g) TIBOR + 0.775% 2/20/2025 16,660 20,935 Borrowing in euros N/A 2/20/2025 — 205,001 Borrowing in British pounds sterling N/A 2/20/2025 — 184,660 462,660 410,596 $ 970,312 $ 722,075 __________ (a) The applicable interest rate at September 30, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa1. (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 $1.6 million and $0.9 million at September 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 September 30, 2022 (currency in thousands): Principal Amount Coupon Rate Maturity Date Principal Outstanding Balance at Senior Unsecured Notes, net (a) Issue Date September 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 487,400 566,300 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 487,400 566,300 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 487,400 566,300 1.350% Senior Notes due 2028 9/19/2019 € 500,000 1.350 % 4/15/2028 487,400 566,300 3.850% Senior Notes due 2029 6/14/2019 $ 325,000 3.850 % 7/15/2029 325,000 325,000 3.41% Senior Notes due 2029 9/28/2022 € 150,000 3.41 % 9/28/2029 146,220 — 0.950% Senior Notes due 2030 3/8/2021 € 525,000 0.950 % 6/1/2030 511,770 594,615 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 3.70% Senior Notes due 2032 9/28/2022 € 200,000 3.70 % 9/28/2032 194,960 — 2.250% Senior Notes due 2033 2/25/2021 $ 425,000 2.250 % 4/1/2033 425,000 425,000 $ 5,702,550 $ 5,759,815 __________ (a) Aggregate balance excludes unamortized deferred financing costs totaling $26.3 million and $28.7 million, and unamortized discount totaling $24.4 million and $29.2 million, at September 30, 2022 and December 31, 2021, respectively. |
Scheduled debt principal payments | Scheduled debt principal payments as of September 30, 2022 are as follows (in thousands): Years Ending December 31, Total 2022 (remainder) $ 96,744 2023 428,242 2024 1,161,427 2025 1,769,956 2026 959,287 Thereafter through 2039 3,431,674 Total principal payments 7,847,330 Unamortized discount, net (37,597) Unamortized deferred financing costs (26,390) Total $ 7,783,343 |
Stock-Based Compensation and _2
Stock-Based Compensation and Equity (Tables) | 9 Months Ended |
Sep. 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 September 30, 2022 and changes during the nine months ended September 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) 229,497 80.35 144,311 104.97 Vested (b) (154,028) 72.80 (165,615) 92.16 Forfeited (5,546) 76.44 — — Adjustment (c) — — 84,248 88.78 Nonvested at September 30, 2022 (d) 376,917 $ 76.04 461,199 $ 92.00 __________ (a) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one-for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the nine months ended September 30, 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 nine months ended September 30, 2022 was $26.5 million. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At September 30, 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 September 30, 2022 to reflect the number of shares expected to be issued when the PSUs vest. (d) At September 30, 2022, total unrecognized compensation expense related to these awards was approximately $39.2 million, with an aggregate weighted-average remaining term of 2.0 years. |
Schedule of earnings per share reconciliation | The following table summarizes basic and diluted earnings (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income — basic and diluted $ 104,928 $ 138,547 $ 389,601 $ 310,426 Weighted-average shares outstanding — basic 203,093,553 185,422,639 196,382,433 180,753,115 Effect of dilutive securities 1,004,563 589,839 882,076 570,013 Weighted-average shares outstanding — diluted 204,098,116 186,012,478 197,264,509 181,323,128 |
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock issued — — 2,740,295 4,225,624 Weighted-average price per share $ — $ — $ 80.79 $ 72.50 Net proceeds $ — $ — $ 218,081 $ 302,506 The following table sets forth certain information regarding the settlement of our Equity Forwards during the periods presented (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Shares of common stock delivered 1,337,500 2,012,500 1,337,500 6,535,709 Net proceeds $ 97,456 $ 147,363 $ 97,456 $ 457,227 |
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 September 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 2,587,500 ATM Forwards (e) 5/2/2022 5,538,037 84.81 469,697 5,538,037 8,125,537 __________ (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 and third quarters 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 September 30, 2022 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ 43,693 $ (309,850) $ — $ (266,157) Other comprehensive loss before reclassifications 28,531 (56,053) — (27,522) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (4,987) — — (4,987) Interest expense 66 — — 66 Total (4,921) — — (4,921) Net current period other comprehensive loss 23,610 (56,053) — (32,443) Net current period other comprehensive loss attributable to noncontrolling interests — 543 — 543 Ending balance $ 67,303 $ (365,360) $ — $ (298,057) Three Months Ended September 30, 2021 Gains and (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Gains and (Losses) on Investments Total Beginning balance $ (1,062) $ (228,898) $ — $ (229,960) Other comprehensive loss before reclassifications 12,932 (20,400) — (7,468) Amounts reclassified from accumulated other comprehensive loss to: Interest expense 196 — — 196 Non-operating income (14) — — (14) Total 182 — — 182 Net current period other comprehensive loss 13,114 (20,400) — (7,286) Ending balance $ 12,052 $ (249,298) $ — $ (237,246) Nine Months Ended September 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 61,054 (109,198) — (48,144) Amounts reclassified from accumulated other comprehensive loss to: Non-operating income (10,450) — — (10,450) Interest expense 352 — — 352 Other gains and (losses) ( Note 9 ) — — (18,688) (18,688) Total (10,098) — (18,688) (28,786) Net current period other comprehensive loss 50,956 (109,198) (18,688) (76,930) Net current period other comprehensive loss attributable to noncontrolling interests — 543 — 543 Ending balance $ 67,303 $ (365,360) $ — $ (298,057) Nine Months Ended September 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 29,737 (28,329) — 1,408 Amounts reclassified from accumulated other comprehensive loss to: Interest expense 720 — — 720 Non-operating income 553 — — 553 Total 1,273 — — 1,273 Net current period other comprehensive income 31,010 (28,329) — 2,681 Net current period other comprehensive income attributable to noncontrolling interests (21) — — (21) Ending balance $ 12,052 $ (249,298) $ — $ (237,246) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Lease revenues $ 331,902 $ 298,616 $ 953,981 $ 872,345 Income from direct financing leases and loans receivable 20,637 16,754 56,794 51,917 Operating property revenues (a) 21,350 4,050 30,279 9,474 Lease termination income and other 8,192 1,421 24,905 8,066 382,081 320,841 1,065,959 941,802 Operating Expenses Depreciation and amortization 132,181 115,657 362,654 340,327 General and administrative 22,299 19,750 66,224 62,297 Reimbursable tenant costs 18,874 15,092 52,538 45,942 Merger and other expenses 17,667 (908) 17,326 (3,998) Property expenses, excluding reimbursable tenant costs 11,244 13,734 36,874 36,432 Operating property expenses 9,357 3,001 15,335 6,961 Stock-based compensation expense 5,511 4,361 23,102 18,790 Impairment charges — real estate — 16,301 26,385 16,301 217,133 186,988 600,438 523,052 Other Income and Expenses Interest expense (59,022) (48,731) (151,492) (149,623) Other gains and (losses) (13,960) 48,172 303 13,455 Gain on change in control of interests 11,405 — 11,405 — Non-operating income 9,264 1,283 23,781 10,620 Earnings (losses) from equity method investments in real estate 6,447 2,445 10,189 (10,528) (Loss) gain on sale of real estate, net (4,736) 1,702 37,631 30,914 (50,602) 4,871 (68,183) (105,162) Income before income taxes 114,346 138,724 397,338 313,588 Provision for income taxes (3,631) (7,827) (16,499) (23,372) Net Income from Real Estate 110,715 130,897 380,839 290,216 Net loss (income) attributable to noncontrolling interests 660 (39) 622 (84) Net Income from Real Estate Attributable to W. P. Carey $ 111,375 $ 130,858 $ 381,461 $ 290,132 Investment Management Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues Asset management and other revenue $ 1,197 $ 3,872 $ 8,084 $ 11,792 Reimbursable costs from affiliates 344 1,041 2,414 3,050 1,541 4,913 10,498 14,842 Operating Expenses Impairment charges — Investment Management goodwill 29,334 — 29,334 — Reimbursable costs from affiliates 344 1,041 2,414 3,050 Merger and other expenses — — 3 15 29,678 1,041 31,751 3,065 Other Income and Expenses Gain on change in control of interests 22,526 — 22,526 — Earnings from equity method investments in the Managed Programs 4,857 3,290 13,288 6,374 Other gains and (losses) (1,060) 1,047 (1,324) 2,121 Non-operating (loss) income (1) — 2 84 26,322 4,337 34,492 8,579 (Loss) income before income taxes (1,815) 8,209 13,239 20,356 Provision for income taxes (4,632) (520) (5,099) (62) Net (Loss) Income from Investment Management Attributable to W. P. Carey $ (6,447) $ 7,689 $ 8,140 $ 20,294 Total Company Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues $ 383,622 $ 325,754 $ 1,076,457 $ 956,644 Operating expenses 246,811 188,029 632,189 526,117 Other income and (expenses) (24,280) 9,208 (33,691) (96,583) Provision for income taxes (8,263) (8,347) (21,598) (23,434) Net loss (income) attributable to noncontrolling interests 660 (39) 622 (84) Net income attributable to W. P. Carey $ 104,928 $ 138,547 $ 389,601 $ 310,426 __________ (a) Operating property revenues from our hotels include $3.7 million and $2.4 million for the three months ended September 30, 2022 and 2021, respectively, and $9.1 million and $4.9 million for the nine months ended September 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). (b) Following the CPA:18 Merger on August 1, 2022, we no longer own an equity investment in CPA:18 – Global, which was previously included within our Investment Management segment ( N ote 3 , Note 8 ). In addition, during the nine months ended September 30, 2022, we recorded an impairment charge of $29.3 million on goodwill within our Investment Management segment ( Note 7 , Note 9 ). |
Reconciliation of assets from segment to consolidated | Total Assets at September 30, 2022 December 31, 2021 Real Estate $ 17,747,813 $ 15,344,799 Investment Management (b) 27,029 135,831 Total Company $ 17,774,842 $ 15,480,630 |
Business and Organization (Deta
Business and Organization (Details) ft² in Millions | 9 Months Ended |
Sep. 30, 2022 ft² property tenant | |
Real Estate | |
Additional disclosures | |
Number of real estate properties (property) | 1,428 |
Square footage of real estate properties | ft² | 175 |
Number of tenants (tenant) | tenant | 391 |
Lease term (years) | 10 years 10 months 24 days |
Occupancy rate | 98.90% |
Real Estate | Operating Properties | |
Additional disclosures | |
Number of real estate properties (property) | 87 |
Square footage of real estate properties | ft² | 6.6 |
Real Estate | Self-storage | |
Additional disclosures | |
Number of real estate properties (property) | 84 |
Real Estate | Student Housing | |
Additional disclosures | |
Number of real estate properties (property) | 2 |
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 | 1 |
Occupancy rate | 100% |
Investment Management | Affiliated Entity | Managed Programs | Built-to-suit | |
Additional disclosures | |
Number of real estate properties (property) | 1 |
Investment Management | Net- lease Properties | Affiliated Entity | Managed Programs | |
Additional disclosures | |
Number of real estate properties (property) | 3 |
Square footage of real estate properties | ft² | 0.4 |
Basis of Presentation - Narrati
Basis of Presentation - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) vie | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) vie | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) vie | |
Basis of Consolidation | |||||
Variable interest entities consolidated, count | 11 | 11 | 6 | ||
Variable interest entities, count | 16 | 16 | 14 | ||
Variable interest entities unconsolidated, count | 5 | 5 | 8 | ||
Equity method investments in real estate | $ | $ 297,665 | $ 297,665 | $ 356,637 | ||
Real Estate | |||||
Basis of Consolidation | |||||
Operating property revenues | $ | 21,350 | $ 4,050 | 30,279 | $ 9,474 | |
Real Estate | Hotel | |||||
Basis of Consolidation | |||||
Operating property revenues | $ | 3,700 | $ 2,400 | 9,100 | $ 4,900 | |
Variable Interest Entity | |||||
Basis of Consolidation | |||||
Equity method investments in real estate | $ | $ 629,800 | $ 629,800 | $ 581,300 | ||
Managed Programs | |||||
Basis of Consolidation | |||||
Variable interest entities unconsolidated, count | 2 | 2 | 2 | ||
Real Estate | |||||
Basis of Consolidation | |||||
Variable interest entities unconsolidated, count | 3 | 3 | 6 | ||
Equity method investments in real estate | $ | $ 295,331 | $ 295,331 | $ 291,903 | ||
CPA 18 Merger | |||||
Basis of Consolidation | |||||
Variable interest entities consolidated, count | 5 | 5 | |||
Variable interest entities, count | 3 | 3 |
Basis of Presentation - Variabl
Basis of Presentation - Variable Interest Entity Disclosure (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Land, buildings and improvements — net lease and other | $ 12,862,423 | $ 11,791,734 | |
Land, buildings and improvements — operating properties | 1,084,524 | 83,673 | |
Net investments in direct financing leases and loans receivable | 781,345 | 813,577 | |
In-place lease intangible assets and other | 2,578,236 | 2,386,000 | |
Above-market rent intangible assets | 840,943 | 843,410 | |
Accumulated depreciation and amortization | (3,065,161) | (2,889,294) | |
Total assets | [1] | 17,774,842 | 15,480,630 |
Liabilities | |||
Non-recourse mortgages, net | 1,162,814 | 368,524 | |
Below-market rent and other intangible liabilities, net | 184,885 | 183,286 | |
Total liabilities | [1] | 8,960,945 | 7,897,179 |
Variable Interest Entity | |||
Assets | |||
Land, buildings and improvements — net lease and other | 606,459 | 426,831 | |
Land, buildings and improvements — operating properties | 105,883 | 0 | |
Net investments in direct financing leases and loans receivable | 144,103 | 144,103 | |
In-place lease intangible assets and other | 71,017 | 42,884 | |
Above-market rent intangible assets | 33,414 | 26,720 | |
Accumulated depreciation and amortization | (168,802) | (154,413) | |
Total assets | 823,378 | 500,884 | |
Liabilities | |||
Non-recourse mortgages, net | 157,044 | 1,485 | |
Below-market rent and other intangible liabilities, net | 19,318 | 20,568 | |
Total liabilities | $ 224,509 | $ 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 | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 186,417 | $ 165,427 | ||
Restricted cash | 63,596 | 52,523 | ||
Total cash and cash equivalents and restricted cash | $ 250,013 | $ 217,950 | $ 181,922 | $ 311,779 |
Merger with CPA_18 _ Global - N
Merger with CPA:18 – Global - Narratives (Details) $ / shares in Units, $ in Thousands, ft² in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 01, 2022 USD ($) ft² property $ / shares $ / ft² shares | Aug. 31, 2022 USD ($) property | Sep. 30, 2022 USD ($) ft² property shares | Sep. 30, 2022 USD ($) ft² property shares | Sep. 30, 2022 USD ($) ft² property shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) ft² property shares | Sep. 30, 2021 USD ($) | Jul. 31, 2022 shares | Dec. 31, 2021 USD ($) property shares | |
Business Acquisition | ||||||||||
Common stock shares, outstanding (shares) | shares | 208,032,718 | 208,032,718 | 208,032,718 | 208,032,718 | 190,013,751 | |||||
Cash consideration paid | $ 423,435 | $ 0 | ||||||||
Non-recourse mortgages, net | $ 1,162,814 | $ 1,162,814 | $ 1,162,814 | $ 1,162,814 | $ 368,524 | |||||
Weighted average interest rate (in percentage) | 4.30% | 4.30% | 4.30% | 4.30% | ||||||
Proceeds from sales of real estate | $ 170,341 | 126,697 | ||||||||
Goodwill | $ 1,023,171 | $ 1,023,171 | $ 1,023,171 | 1,023,171 | $ 901,529 | |||||
Gain on change in control of interests | 33,931 | $ 0 | 33,931 | 0 | ||||||
Properties disposed of by sale | ||||||||||
Business Acquisition | ||||||||||
Proceeds from sales of real estate | 55,200 | 28,300 | 170,300 | 126,700 | ||||||
Losses on sales of property | $ (4,700) | 1,700 | $ 37,600 | 30,900 | ||||||
Asset held for sale, not in discontinued operations | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 1 | 1 | 1 | 1 | 2 | |||||
Minimum | Other Jointly Owned Investments | ||||||||||
Business Acquisition | ||||||||||
Market rents (sqft/usd) | $ / ft² | 8.65 | |||||||||
Minimum | Other Jointly Owned Investments | Level 3 | Measurement Input, Discount Rate | ||||||||||
Business Acquisition | ||||||||||
Real estate measurement input (percent) | 5.75% | |||||||||
Estimated residual value (percent) | 6.50% | |||||||||
Debt instrument, measurement input (percent) | 0.0228 | |||||||||
Minimum | Other Jointly Owned Investments | Level 3 | Residual capitalization rate | ||||||||||
Business Acquisition | ||||||||||
Real estate measurement input (percent) | 5.75% | |||||||||
Maximum | Other Jointly Owned Investments | ||||||||||
Business Acquisition | ||||||||||
Market rents (sqft/usd) | $ / ft² | 21 | |||||||||
Maximum | Other Jointly Owned Investments | Level 3 | Measurement Input, Discount Rate | ||||||||||
Business Acquisition | ||||||||||
Real estate measurement input (percent) | 9.75% | |||||||||
Estimated residual value (percent) | 8.50% | |||||||||
Debt instrument, measurement input (percent) | 0.0550 | |||||||||
Maximum | Other Jointly Owned Investments | Level 3 | Residual capitalization rate | ||||||||||
Business Acquisition | ||||||||||
Real estate measurement input (percent) | 8% | |||||||||
Real Estate | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 1,428 | 1,428 | 1,428 | 1,428 | ||||||
Lease term (years) | 10 years 10 months 24 days | 10 years 10 months 24 days | 10 years 10 months 24 days | 10 years 10 months 24 days | ||||||
Occupancy rate | 98.90% | |||||||||
Square footage of real estate properties | ft² | 175 | 175 | 175 | 175 | ||||||
Lease revenues | $ 331,902 | 298,616 | $ 953,981 | 872,345 | ||||||
Goodwill | $ 1,023,171 | $ 1,023,171 | 1,023,171 | 1,023,171 | $ 872,195 | |||||
Gain on change in control of interests | $ 11,405 | $ 0 | $ 11,405 | $ 0 | ||||||
CPA:18 | Affiliated Entity | ||||||||||
Business Acquisition | ||||||||||
Jointly owned investments, count | property | 4 | |||||||||
Real Estate | CPA:18 | Affiliated Entity | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 7 | |||||||||
Operating Properties | Real Estate | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 87 | 87 | 87 | 87 | ||||||
Square footage of real estate properties | ft² | 6.6 | 6.6 | 6.6 | 6.6 | ||||||
Self-storage | Real Estate | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 84 | 84 | 84 | 84 | ||||||
CPA:18 | ||||||||||
Business Acquisition | ||||||||||
Common stock shares, outstanding (shares) | shares | 141,099,002 | |||||||||
Number of properties (property) | property | 42 | |||||||||
Lease term (years) | 7 years | |||||||||
Occupancy rate | 99.30% | |||||||||
Contractual minimum annualized base rent | $ 81,000 | |||||||||
Non-recourse mortgages, net | $ 900,200 | |||||||||
Weighted average interest rate (in percentage) | 5.10% | |||||||||
CPA:18 | Self-storage | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 65 | |||||||||
CPA:18 | Student Housing | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 2 | |||||||||
CPA:18 | ||||||||||
Business Acquisition | ||||||||||
Share price (usd per share) | $ / shares | $ 87.46 | |||||||||
Fair value of W. P. Carey shares of common stock issued | $ 1,600,000 | |||||||||
Shares issued as compensation in acquisition (shares) | shares | 13,786,302 | |||||||||
Fair value of shares issued | $ 1,200,000 | |||||||||
Actual revenue from acquiree | $ 16,500 | |||||||||
Actual net loss from acquiree | (500) | |||||||||
Merger related costs | $ 17,100 | |||||||||
Goodwill | 172,300 | $ 172,300 | $ 172,300 | $ 172,300 | ||||||
Gain on change in control of interests | 22,500 | |||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | 88,300 | |||||||||
CPA:18 | Jointly owned investments | ||||||||||
Business Acquisition | ||||||||||
Gain on change in control of interests | $ 11,400 | |||||||||
CPA:18 | Carrying Value | ||||||||||
Business Acquisition | ||||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | 65,800 | |||||||||
CPA:18 | Carrying Value | Jointly owned investments | ||||||||||
Business Acquisition | ||||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | 17,200 | |||||||||
CPA:18 | Fair Value | Jointly owned investments | ||||||||||
Business Acquisition | ||||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | $ 28,600 | |||||||||
CPA:18 | Operating Properties | ||||||||||
Business Acquisition | ||||||||||
Square footage of real estate properties | ft² | 5.1 | |||||||||
CPA:18 | Operating Properties | Real Estate | ||||||||||
Business Acquisition | ||||||||||
Actual revenue from acquiree | $ 15,400 | |||||||||
CPA:18 | $0.001 Par Value Common Stock | ||||||||||
Business Acquisition | ||||||||||
Share conversion rate (usd per share) | $ / shares | $ 0.0978 | |||||||||
Share price (usd per share) | $ / shares | $ 3 | |||||||||
Shares of acquiree held prior to merger (shares) | shares | 8,556,732 | |||||||||
CPA 18 Merger | ||||||||||
Business Acquisition | ||||||||||
Fair value of W. P. Carey shares of common stock issued | $ 1,205,750 | |||||||||
Cash consideration paid | 423,297 | |||||||||
Cash paid for fractional shares | 138 | |||||||||
Assets held for sale | 85,026 | |||||||||
Goodwill | 172,346 | |||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | $ 88,299 | |||||||||
CPA 18 Merger | Properties disposed of by sale | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 1 | |||||||||
Proceeds from sales of real estate | $ 44,500 | |||||||||
Losses on sales of property | (200) | |||||||||
CPA 18 Merger | Asset held for sale, not in discontinued operations | ||||||||||
Business Acquisition | ||||||||||
Number of properties (property) | property | 2 | |||||||||
Assets held for sale | $ 85,000 | |||||||||
CPA 18 Merger | Jointly owned investments | ||||||||||
Business Acquisition | ||||||||||
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger | $ 28,574 | |||||||||
CPA 18 Merger | Real Estate | ||||||||||
Business Acquisition | ||||||||||
Lease revenues | $ 2,100 |
Merger with CPA_18 _ Global - P
Merger with CPA:18 – Global - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Aug. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition | ||||
Cash consideration paid | $ 423,435 | $ 0 | ||
Liabilities Assumed at Fair Value | ||||
Goodwill | $ 1,023,171 | $ 901,529 | ||
CPA 18 Merger | ||||
Business Acquisition | ||||
Fair value of W. P. Carey shares of common stock issued | $ 1,205,750 | |||
Cash consideration paid | 423,297 | |||
Cash paid for fractional shares | 138 | |||
Merger Consideration | 1,629,185 | |||
Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger | 88,299 | |||
Fair value of our equity interest | 1,746,058 | |||
Assets Acquired at Fair Value | ||||
Land, buildings and improvements — net lease and other | 881,613 | |||
Land, buildings and improvements — operating properties | 1,000,447 | |||
Net investments in direct financing leases and loans receivable | 38,517 | |||
In-place lease and other intangible assets | 224,458 | |||
Above-market rent intangible assets | 61,090 | |||
Assets held for sale | 85,026 | |||
Cash and cash equivalents and restricted cash acquired | 331,063 | |||
Other assets, net (excluding restricted cash) | 25,229 | |||
Net assets acquired excluding cash and restricted cash | 2,647,443 | |||
Liabilities Assumed at Fair Value | ||||
Non-recourse mortgages, net | 900,173 | |||
Accounts payable, accrued expenses and other liabilities | 90,035 | |||
Below-market rent and other intangible liabilities | 16,836 | |||
Deferred income taxes | 52,320 | |||
Total liabilities | 1,059,364 | |||
Total identifiable net assets | 1,588,079 | |||
Amounts attributable to noncontrolling interests | (14,367) | |||
Goodwill | 172,346 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | 1,746,058 | |||
Cash and cash equivalents and restricted cash acquired | 331,063 | |||
CPA 18 Merger | Jointly owned investments | ||||
Business Acquisition | ||||
Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger | $ 28,574 |
Merger with CPA_18 _ Global -_2
Merger with CPA:18 – Global - Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition, Pro Forma Information | ||||
Pro forma total revenues | $ 397,915 | $ 372,498 | $ 1,187,887 | $ 1,089,031 |
Agreements and Transactions w_3
Agreements and Transactions with Related Parties - Narratives (Details) | 9 Months Ended | ||
Sep. 30, 2022 USD ($) investment | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Advisory Agreements with REIT | |||
Percentage of available cash distribution to advisor | 10% | ||
Other Transactions with Affiliates | |||
Due from affiliates | $ | $ 602,000 | $ 1,826,000 | |
Jointly owned investments | 10 | ||
Jointly owned investment, accounted for under the equity method investments | 4 | ||
Affiliated Entity | CPA:18 – Global | |||
Other Transactions with Affiliates | |||
Due from affiliates | $ | $ 16,000,000 | $ 0 | |
Other Entity | |||
Other Transactions with Affiliates | |||
Jointly owned investments | 6 |
Agreements and Transactions w_4
Agreements and Transactions with Related Parties - Related Party Income (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction | ||||
Distributions of Available Cash | $ 3,345 | $ 1,623 | $ 8,746 | $ 4,949 |
Interest income on deferred acquisition fees and loans to affiliates | 4 | 57 | 112 | 121 |
Revenue from related parties | 4,890 | 6,593 | 19,356 | 19,912 |
Asset management and other revenue | ||||
Related Party Transaction | ||||
Operating property revenues | 1,197 | 3,872 | 8,084 | 11,792 |
Reimbursable costs from affiliates | ||||
Related Party Transaction | ||||
Operating property revenues | $ 344 | $ 1,041 | $ 2,414 | $ 3,050 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction | ||||
Revenue from related parties | $ 4,890 | $ 6,593 | $ 19,356 | $ 19,912 |
CPA:18 – Global | ||||
Related Party Transaction | ||||
Revenue from related parties | 4,466 | 5,608 | 17,854 | 16,578 |
CESH | ||||
Related Party Transaction | ||||
Revenue from related parties | 424 | 909 | 1,502 | 3,054 |
WLT (reimbursed transition services) | ||||
Related Party Transaction | ||||
Revenue from related parties | $ 0 | $ 76 | $ 0 | $ 280 |
Agreements and Transactions w_6
Agreements and Transactions with Related Parties - Due from Affiliates (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Due from affiliates | ||
Asset management fees receivable | $ 352 | $ 494 |
Accounts receivable | 159 | 336 |
Reimbursable costs | 91 | 974 |
Current acquisition fees receivable | 0 | 19 |
Deferred acquisition fees receivable, including accrued interest | 0 | 3 |
Due from affiliates | $ 602 | $ 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 | 9 Months Ended |
Sep. 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 | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate Investment Property At Cost | ||
Less: Accumulated depreciation | $ (1,563,622) | $ (1,448,020) |
Net property subject to operating lease | 11,298,801 | 10,343,714 |
Land | ||
Real Estate Investment Property At Cost | ||
Land, buildings and improvements — net lease and other | 2,320,763 | 2,151,327 |
Buildings and improvements | ||
Real Estate Investment Property At Cost | ||
Land, buildings and improvements — net lease and other | 10,525,449 | 9,525,858 |
Real estate under construction | ||
Real Estate Investment Property At Cost | ||
Land, buildings and improvements — net lease and other | $ 16,211 | $ 114,549 |
Land, Buildings and Improveme_4
Land, Buildings and Improvements and Assets Held for Sale - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) property lease $ / € | Sep. 30, 2022 USD ($) property lease $ / € | Sep. 30, 2021 USD ($) property | Sep. 30, 2022 USD ($) property lease $ / € | Sep. 30, 2021 USD ($) property | Dec. 31, 2021 USD ($) property $ / € | Aug. 31, 2022 property | Aug. 01, 2022 USD ($) property | |
Real Estate Properties | ||||||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (56,053) | $ (20,400) | $ (109,198) | $ (28,329) | ||||
Net investments in direct financing leases and loans receivable | $ 515,662 | 515,662 | 515,662 | $ 572,205 | ||||
Land, buildings and improvements — net lease and other | 12,862,423 | 12,862,423 | 12,862,423 | $ 11,791,734 | ||||
Investments in real estate | ||||||||
Capitalized construction cost | $ 127,300 | |||||||
Construction projects completed (property) | property | 4 | 6 | ||||||
Unfunded commitment | 38,200 | 38,200 | $ 38,200 | $ 55,300 | ||||
Capitalized interest | 300 | 600 | 1,300 | 1,900 | ||||
Lease termination income | 4,200 | 8,200 | ||||||
Lease payments | 3,800 | 800 | 10,000 | 6,100 | ||||
Assets held for sale, net | $ 38,578 | $ 38,578 | $ 38,578 | $ 8,269 | ||||
CPA 18 Merger | ||||||||
Investments in real estate | ||||||||
Number of lease arrangements acquired (lease) | lease | 7 | 7 | 7 | |||||
Right-of-use assets | $ 24,500 | $ 24,500 | $ 24,500 | |||||
Lease liability | 6,600 | 6,600 | 6,600 | |||||
Land, buildings and improvements — net lease and other | $ 881,613 | |||||||
CPA 18 Merger | Below-market rent | ||||||||
Investments in real estate | ||||||||
Right-of-use assets | $ 17,900 | $ 17,900 | $ 17,900 | |||||
EUR | ||||||||
Real Estate Properties | ||||||||
Decrease in exchange rate | 13.90% | |||||||
Foreign currency exchange rate | $ / € | 0.9748 | 0.9748 | 0.9748 | 1.1326 | ||||
Real Estate | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1,428 | 1,428 | 1,428 | |||||
Investments in real estate | ||||||||
Other income | $ 200 | $ 500 | $ 1,500 | $ 1,400 | ||||
Properties disposed of by sale | ||||||||
Investments in real estate | ||||||||
Number of properties sold (property) | property | 3 | 5 | 17 | 17 | ||||
Properties disposed of by sale | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1 | |||||||
Asset held for sale, not in discontinued operations | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1 | 1 | 1 | 2 | ||||
Investments in real estate | ||||||||
Assets held for sale, net | $ 38,600 | $ 38,600 | $ 38,600 | $ 8,300 | ||||
Asset held for sale, not in discontinued operations | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 2 | |||||||
Land, buildings and improvements | Properties disposed of by sale | ||||||||
Investments in real estate | ||||||||
Number of properties sold (property) | property | 14 | |||||||
Decrease in carrying value of real estate | $ 74,700 | |||||||
Construction in progress | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 5 | 5 | 5 | |||||
Investments in real estate | ||||||||
Funding commitment | $ 3,600 | $ 3,600 | $ 3,600 | |||||
Land | CPA 18 Merger | ||||||||
Investments in real estate | ||||||||
Right-of-use assets | $ 6,600 | $ 6,600 | $ 6,600 | |||||
Operating Lease | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 99 | 99 | 99 | |||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (601,100) | |||||||
Depreciation | $ 76,000 | $ 70,800 | 221,000 | $ 207,200 | ||||
Operating Real Estate | ||||||||
Real Estate Properties | ||||||||
Depreciation | $ 4,100 | $ 700 | $ 5,400 | $ 2,100 | ||||
Operating Real Estate | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 39 | 39 | 39 | |||||
Self-storage | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 65 | 65 | 65 | |||||
Self-storage | Operating Real Estate | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 75 | 75 | 75 | 10 | ||||
Student Housing | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1 | 1 | 1 | |||||
Student Housing | Operating Real Estate | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 2 | 2 | 2 | |||||
Student Housing Development Project | ||||||||
Investments in real estate | ||||||||
Assets placed into service | $ 32,900 | |||||||
Student Housing Development Project | CPA 18 Merger | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1 | 1 | 1 | |||||
Land, buildings and improvements — net lease and other | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||||
Investments in real estate | ||||||||
Capitalized construction cost | $ 78,300 | |||||||
Build to Suit | Construction in progress | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 2 | 2 | 2 | |||||
Hotel | Operating Real Estate | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 1 | 1 | 1 | 1 | ||||
Adjustments | ||||||||
Real Estate Properties | ||||||||
Net investments in direct financing leases and loans receivable | $ (30,500) | $ (30,500) | $ (30,500) | |||||
Land, buildings and improvements — net lease and other | $ 30,500 | $ 30,500 | $ 30,500 | |||||
Direct financing lease | Adjustments | ||||||||
Real Estate Properties | ||||||||
Number of real estate properties (property) | property | 2 | 2 | 2 |
Land, Buildings and Improveme_5
Land, Buildings and Improvements and Assets Held for Sale - Acquisition of Real Estate (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 9 Months Ended | ||||||||||||||||
Aug. 26, 2022 USD ($) property | Aug. 12, 2022 USD ($) property | Aug. 10, 2022 USD ($) property | Aug. 03, 2022 USD ($) property | Jul. 26, 2022 USD ($) property | Jul. 21, 2022 USD ($) property | 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 | Sep. 28, 2022 USD ($) property | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | |
Property, Plant and Equipment | |||||||||||||||||||
Total Capitalized Costs | $ 1,013,950 | $ 1,004,433 | |||||||||||||||||
Operating Lease | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 99 | ||||||||||||||||||
Total Capitalized Costs | $ 1,022,819 | ||||||||||||||||||
Operating Lease | Land | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Total Capitalized Costs | 129,005 | ||||||||||||||||||
Operating Lease | Buildings and improvements | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Total Capitalized Costs | 751,579 | ||||||||||||||||||
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 | $ 133,327 | ||||||||||||||||||
Finite lived intangible assets useful life (in years) | 21 years 4 months 24 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 | 8 | |||||||||||||||
Total Capitalized Costs | $ 33,976 | $ 42,635 | $ 29,644 | ||||||||||||||||
Operating Lease | Additional properties acquired , Denmark | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 5 | ||||||||||||||||||
Total Capitalized Costs | $ 17,700 | ||||||||||||||||||
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 | $ 21,900 | ||||||||||||||||||
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 | 18 | 4 | |||||||||||||||||
Total Capitalized Costs | $ 262,061 | ||||||||||||||||||
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 | |||||||||||||||||
Total Capitalized Costs | $ 96,697 | ||||||||||||||||||
Operating Lease | Various, Spain | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 5 | ||||||||||||||||||
Total Capitalized Costs | $ 19,894 | ||||||||||||||||||
Operating Lease | Westlake, Ohio | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 1 | ||||||||||||||||||
Total Capitalized Costs | $ 29,517 | ||||||||||||||||||
Operating Lease | Hebron and Strongsville, Ohio; and Scarborough, Canada | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 3 | ||||||||||||||||||
Total Capitalized Costs | $ 20,111 | ||||||||||||||||||
Operating Lease | Clifton Park, New York and West Des Moines, Iowa | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 2 | ||||||||||||||||||
Total Capitalized Costs | $ 23,317 | ||||||||||||||||||
Operating Lease | Orzinuovi, Italy | |||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||
Number of properties (property) | property | 1 | ||||||||||||||||||
Total Capitalized Costs | $ 14,033 |
Land, Buildings and Improveme_6
Land, Buildings and Improvements and Assets Held for Sale - Real Estate Under Construction (Details) - Construction in progress $ in Thousands | 9 Months Ended | ||
Aug. 01, 2022 USD ($) property | Jul. 07, 2022 USD ($) property | Sep. 30, 2022 USD ($) property | |
Property, Plant and Equipment | |||
Number of properties (property) | property | 5 | ||
Total Capitalized Costs | $ | $ 147,305 | ||
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 | ||
Wageningen, Netherlands | |||
Property, Plant and Equipment | |||
Number of properties (property) | property | 1 | ||
Total Capitalized Costs | $ | $ 26,054 | ||
Radomsko, Poland | |||
Property, Plant and Equipment | |||
Number of properties (property) | property | 1 | ||
Total Capitalized Costs | $ | $ 23,042 |
Land, Buildings and Improveme_7
Land, Buildings and Improvements and Assets Held for Sale - Operating Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Lease, Lease Income [Abstract] | ||||
Lease income — fixed | $ 295,433 | $ 271,360 | $ 852,843 | $ 790,391 |
Lease income – variable | 36,469 | 27,256 | 101,138 | 81,954 |
Total operating lease income | $ 331,902 | $ 298,616 | $ 953,981 | $ 872,345 |
Land, Buildings and Improveme_8
Land, Buildings and Improvements and Assets Held for Sale - Operating Real Estate (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate Properties | ||
Land, buildings and improvements — operating properties | $ 1,084,524 | $ 83,673 |
Less: Accumulated depreciation | (3,065,161) | (2,889,294) |
Real estate under construction | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | 45,341 | 0 |
Land, Buildings and Improvements — Operating Leases | ||
Real Estate Properties | ||
Less: Accumulated depreciation | (22,118) | (16,750) |
Investments in real estate | 1,062,406 | 66,923 |
Land, Buildings and Improvements — Operating Leases | Land | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | 122,317 | 10,452 |
Land, Buildings and Improvements — Operating Leases | Buildings and improvements | ||
Real Estate Properties | ||
Land, buildings and improvements — operating properties | $ 916,866 | $ 73,221 |
Land, Buildings and Improveme_9
Land, Buildings and Improvements and Assets Held for Sale - Summary of Assets Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Long-Lived Assets Held-for-sale [Line Items] | ||
Accumulated depreciation and amortization | $ 0 | $ (2,359) |
Assets held for sale, net | 38,578 | 8,269 |
In-place lease intangible assets and other | ||
Long-Lived Assets Held-for-sale [Line Items] | ||
Assets Held-for-sale, gross | 7,296 | 0 |
Above-market rent intangible assets | ||
Long-Lived Assets Held-for-sale [Line Items] | ||
Assets Held-for-sale, gross | 171 | 0 |
Land, buildings and improvements — net lease and other | ||
Long-Lived Assets Held-for-sale [Line Items] | ||
Assets Held-for-sale, gross | $ 31,111 | $ 10,628 |
Finance Receivables - Direct Fi
Finance Receivables - Direct Financing Leases and Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Net investments in direct financing leases | $ 515,662 | $ 572,205 |
Sale-leaseback transactions accounted for as loans receivable | 226,433 | 217,229 |
Secured loans receivable | 39,250 | 24,143 |
Net investment In lease and loans receivable | $ 781,345 | $ 813,577 |
Finance Receivables - Net Inves
Finance Receivables - Net Investments in Direct Financing Lease (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Lease payments receivable | $ 338,733 | $ 414,002 |
Unguaranteed residual value | 485,790 | 545,896 |
Net investment in finance leases, excluding unearned income | 824,523 | 959,898 |
Less: unearned income | (302,930) | (370,353) |
Less: allowance for credit losses | (5,931) | (17,340) |
Net receivables (difference between undiscounted cash flows and discounted cash flows) | $ 515,662 | $ 572,205 |
Finance Receivables - Narrative
Finance Receivables - Narratives (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) property | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | |
Finance Receivables | |||||||
Allowance for credit loss | $ (27,777) | $ (6,737) | |||||
Credit to allowance for direct finance lease related to reclassification | 4,700 | ||||||
Interest income from direct financing leases | $ 13,000 | $ 15,600 | 40,200 | 48,900 | |||
Net investments in direct financing leases and loans receivable | $ 515,662 | 515,662 | 515,662 | $ 572,205 | |||
Land, buildings and improvements — net lease and other | 12,862,423 | 12,862,423 | 12,862,423 | 11,791,734 | |||
Increase (decrease) in value of balance sheet item due to foreign currency translation | (56,053) | (20,400) | (109,198) | (28,329) | |||
Loans receivable, allowance for credit losses | 2,100 | 2,100 | 2,100 | $ 12,600 | |||
Proceeds from repayment of loans receivable | 34,000 | 34,000 | 0 | ||||
Release of allowance for credit losses | 10,500 | ||||||
Interest receivable | $ 3,700 | ||||||
Proceeds from the collection of interest related to secured loans | 2,300 | ||||||
Potentially uncollectible interest receivable | 1,400 | 1,400 | 1,400 | ||||
Interest income from direct financing leases and loans receivables | 7,600 | $ 1,200 | 16,600 | 3,000 | |||
CPA 18 Merger | |||||||
Finance Receivables | |||||||
Net investments in direct financing leases and loans receivable | 10,500 | 10,500 | 10,500 | ||||
Secured loans receivables acquired | 28,000 | 28,000 | $ 28,000 | ||||
Interest rate on loan (percent) | 10% | ||||||
Adjustments | |||||||
Finance Receivables | |||||||
Net investments in direct financing leases and loans receivable | (30,500) | (30,500) | $ (30,500) | ||||
Land, buildings and improvements — net lease and other | $ 30,500 | $ 30,500 | 30,500 | ||||
Direct financing lease | |||||||
Finance Receivables | |||||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (53,700) | ||||||
Direct financing lease | Adjustments | |||||||
Finance Receivables | |||||||
Number of real estate properties (property) | property | 2 | 2 | 2 | ||||
Net investments in direct financing lease | |||||||
Finance Receivables | |||||||
Allowance for credit loss | $ 6,700 | $ 6,700 |
Finance Receivables - Sales-lea
Finance Receivables - Sales-leaseback (Details) - Various Belgium $ in Thousands | Sep. 30, 2022 USD ($) property |
Accounts, Notes, Loans and Financing Receivable | |
Number of real estate properties (property) | property | 5 |
Total Investment | $ | $ 19,795 |
Finance Receivables - Internal
Finance Receivables - Internal Credit Quality Rating (Details) $ in Thousands | Sep. 30, 2022 USD ($) tenant | Dec. 31, 2021 USD ($) tenant |
Credit Quality Of Finance Receivables | ||
Net investments in direct financing leases | $ 789,376 | $ 843,510 |
Internally Assigned Grade1-3 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants (tenant) | tenant | 19 | 17 |
Net investments in direct financing leases | $ 676,152 | $ 703,280 |
Internally Assigned Grade 4 | ||
Credit Quality Of Finance Receivables | ||
Number of tenants (tenant) | tenant | 8 | 9 |
Net investments in direct financing leases | $ 113,224 | $ 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets, Net | ||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (56,053) | $ (20,400) | $ (109,198) | $ (28,329) |
Amortization of intangible assets | $ 62,100 | $ 55,200 | 165,600 | $ 166,900 |
Net intangible assets | ||||
Finite-Lived Intangible Assets, Net | ||||
Increase (decrease) in value of balance sheet item due to foreign currency translation | $ (96,700) | |||
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 - Net Lease Intangibles (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
CPA 18 Merger | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Finite-Lived Intangible Assets | $ 261,003 | |
In-place lease | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Finite-Lived Intangible Assets | $ 1,466,309 | $ 1,345,242 |
In-place lease | CPA 18 Merger | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Weighted-Average Life | 7 years 4 months 24 days | |
Finite-Lived Intangible Assets | $ 199,913 | |
Above-market rent | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Finite-Lived Intangible Assets | $ 344,567 | $ 353,549 |
Above-market rent | CPA 18 Merger | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Weighted-Average Life | 11 years 10 months 24 days | |
Finite-Lived Intangible Assets | $ 61,090 | |
Below-market rent | CPA 18 Merger | ||
Schedule Of Finite And Indefinite Lived Intangible Assets Liabilities [Line Items] | ||
Weighted-Average Life | 8 years 6 months | |
Finite-Lived Intangible Liabilities | $ (16,836) |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Goodwill Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill | ||||
Goodwill, beginning balance | $ 901,529 | |||
Acquisition of CPA:18 – Global (Note 3) | 172,346 | |||
Foreign currency translation adjustments | (21,370) | |||
Goodwill, Impairment Loss | $ (29,334) | $ 0 | (29,334) | $ 0 |
Goodwill, ending balance | 1,023,171 | 1,023,171 | ||
Real Estate | ||||
Goodwill | ||||
Goodwill, beginning balance | 872,195 | |||
Acquisition of CPA:18 – Global (Note 3) | 172,346 | |||
Foreign currency translation adjustments | (21,370) | |||
Goodwill, Impairment Loss | 0 | |||
Goodwill, ending balance | 1,023,171 | 1,023,171 | ||
Investment Management | ||||
Goodwill | ||||
Goodwill, beginning balance | 29,334 | |||
Acquisition of CPA:18 – Global (Note 3) | 0 | |||
Foreign currency translation adjustments | 0 | |||
Goodwill, Impairment Loss | (29,334) | $ 0 | (29,334) | $ 0 |
Goodwill, ending balance | $ 0 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Intangible Assets and Liabilities Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Amortizable Intangible Assets | ||
Accumulated Amortization | $ (1,498,461) | $ (1,446,787) |
Indefinite Lived Intangible Assets Including Goodwill | ||
Total intangible assets, gross | 4,333,168 | 4,048,372 |
Total intangible assets, net | 2,834,707 | 2,601,585 |
Amortizable Intangible Liabilities | ||
Less: accumulated amortization | 118,272 | 105,908 |
Indefinite Lived Intangible Liabilities | ||
Total intangible liabilities, gross | (303,157) | (289,194) |
Total intangible liabilities, net | (184,885) | (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 | (286,446) | (272,483) |
Less: accumulated amortization | 118,272 | 105,908 |
Net amortizable intangible liabilities | (168,174) | (166,575) |
Goodwill | ||
Indefinite Lived Intangible Assets Including Goodwill | ||
Indefinite-lived intangible assets | 1,023,171 | 901,529 |
Contracts including internal software development costs | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 19,700 | 23,528 |
Accumulated Amortization | (19,040) | (22,263) |
Net Carrying Amount | 660 | 1,265 |
Internal-use software development costs | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 19,700 | 19,553 |
Accumulated Amortization | (19,040) | (18,682) |
Net Carrying Amount | 660 | 871 |
Trade name | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 0 | 3,975 |
Accumulated Amortization | 0 | (3,581) |
Net Carrying Amount | 0 | 394 |
Lease intangibles | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 3,290,297 | 3,123,315 |
Accumulated Amortization | (1,479,421) | (1,424,524) |
Net Carrying Amount | 1,810,876 | 1,698,791 |
In-place lease | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 2,449,354 | 2,279,905 |
Accumulated Amortization | (983,045) | (934,663) |
Net Carrying Amount | 1,466,309 | 1,345,242 |
Above-market rent | ||
Amortizable Intangible Assets | ||
Gross Carrying Amount | 840,943 | 843,410 |
Accumulated Amortization | (496,376) | (489,861) |
Net Carrying Amount | $ 344,567 | $ 353,549 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Investments in Managed Programs (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Existing Equity Method Investments | ||
Equity method investments in real estate | $ 297,665 | $ 356,637 |
CPA:18 – Global | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 100% | 5.578% |
Equity method investments in real estate | $ 0 | $ 60,836 |
CPA:18 – Global operating partnership (a) | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 100% | 0.034% |
Equity method investments in real estate | $ 0 | $ 209 |
CESH | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 2.43% | 2.43% |
Equity method investments in real estate | $ 2,334 | $ 3,689 |
Affiliated Entity | Managed Programs | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | $ 2,334 | $ 64,734 |
Equity Investments - Narratives
Equity Investments - Narratives (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 | Sep. 30, 2021 | Oct. 31, 2022 | Jan. 31, 2022 | Dec. 31, 2021 | Jun. 10, 2021 | |
Equity investments | ||||||
Distributions of earnings from equity method investments | $ 26,276 | $ 8,816 | ||||
Real Estate | Unconsolidated Real Estate Investment | ||||||
Equity investments | ||||||
Distributions of earnings from equity method investments | 24,200 | 14,100 | ||||
Aggregate unamortized basis difference on equity investments | 19,300 | $ 7,900 | ||||
Las Vegas Retail Complex | ||||||
Equity investments | ||||||
Investment income | 6,100 | 1,600 | ||||
Affiliated Entity | CPA:18 – Global | ||||||
Equity investments | ||||||
Distributions of earnings from equity method investments | 1,600 | 1,400 | ||||
Affiliated Entity | CPA:18 – Global operating partnership (a) | ||||||
Equity investments | ||||||
Distributions of earnings from equity method investments | 8,700 | 4,900 | ||||
Affiliated Entity | CESH | ||||||
Equity investments | ||||||
Distributions of earnings from equity method investments | $ 1,200 | $ 1,300 | ||||
Affiliated Entity | Managed Programs | ||||||
Equity investments | ||||||
Aggregate unamortized basis difference on equity investments | $ 23,300 | |||||
Affiliated Entity | Common Stock | WLT (reimbursed transition services) | ||||||
Equity investments | ||||||
Shares owned (shares) | 12,208,243 | 12,208,243 | ||||
Affiliated Entity | Common Stock | WLT (reimbursed transition services) | Subsequent Events | ||||||
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 | $ 168,900 | |||||
Payments to settle other commitments | $ 65,200 | |||||
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Existing Equity Method Investments | ||
Equity method investments in real estate | $ 297,665 | $ 356,637 |
Real Estate | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | 295,331 | 291,903 |
Real Estate | Affiliated Entity | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | 295,331 | 271,469 |
Real Estate | Third Party | Affiliated Entity | Las Vegas Retail Complex | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | $ 169,896 | 104,114 |
Real Estate | Third Party | Affiliated Entity | Johnson Self Storage | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 90% | |
Equity method investments in real estate | $ 66,137 | 67,573 |
Real Estate | Third Party | Affiliated Entity | Kesko Senukai | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 70% | |
Equity method investments in real estate | $ 34,554 | 41,955 |
Real Estate | Third Party | Affiliated Entity | Harmon Retail Corner | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 15% | |
Equity method investments in real estate | $ 24,744 | 24,435 |
Real Estate | WLT (reimbursed transition services) | Affiliated Entity | WLT (reimbursed transition services) | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | 0 | 33,392 |
Real Estate | CPA:18 – Global | Affiliated Entity | ||
Existing Equity Method Investments | ||
Equity method investments in real estate | $ 0 | 20,434 |
Real Estate | CPA:18 – Global | Affiliated Entity | State Farm Mutual Automobile Insurance Co. | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 50% | |
Equity method investments in real estate | $ 0 | 7,129 |
Real Estate | CPA:18 – Global | Affiliated Entity | Apply Sorco AS | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 49% | |
Equity method investments in real estate | $ 0 | 5,909 |
Real Estate | CPA:18 – Global | Affiliated Entity | Bank Pekao S.A. | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 50% | |
Equity method investments in real estate | $ 0 | 4,460 |
Real Estate | CPA:18 – Global | Affiliated Entity | Fortenova Grupa d.d. | ||
Existing Equity Method Investments | ||
Equity method investment, ownership percentage | 20% | |
Equity method investments in real estate | $ 0 | $ 2,936 |
Fair Value Measurements - Narra
Fair Value Measurements - Narratives (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 property | Jan. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) property shares | Sep. 30, 2021 USD ($) $ / ft² | Sep. 30, 2022 USD ($) property shares | Sep. 30, 2021 USD ($) $ / ft² | Dec. 31, 2021 USD ($) property shares | |
Fair Value Inputs, Assets | |||||||
Equity method investments in real estate | $ 297,665 | $ 297,665 | $ 356,637 | ||||
Preferred stock, shares issued (shares) | shares | 0 | 0 | 0 | ||||
Proceeds from issuance of preferred stock | $ 65,000 | $ 0 | |||||
Reclassification of unrealized gain on investments to net income | $ 0 | $ 0 | 18,688 | 0 | |||
Unamortized deferred financing costs | 26,390 | 26,390 | |||||
Unamortized discount | 37,597 | 37,597 | |||||
Goodwill impairment | 29,334 | 0 | 29,334 | 0 | |||
Investment Management | |||||||
Fair Value Inputs, Assets | |||||||
Goodwill impairment | 29,334 | 0 | 29,334 | 0 | |||
Goodwill, fair value | $ 0 | $ 0 | |||||
Asset held for sale, not in discontinued operations | |||||||
Fair Value Inputs, Assets | |||||||
Number of real estate properties (property) | property | 1 | 1 | 2 | ||||
Real estate and intangibles | Pendragon PLC | |||||||
Fair Value Inputs, Assets | |||||||
Number of real estate properties (property) | property | 30 | ||||||
Lease extension term | 11 years | ||||||
Real estate 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 | $ 1,700 | ||||||
Equity method investments in real estate | $ 2,700 | $ 2,700 | $ 4,300 | ||||
Affiliated Entity | Common Stock | WLT (reimbursed transition services) | |||||||
Fair Value Inputs, Assets | |||||||
Shares owned (shares) | shares | 12,208,243 | 12,208,243 | 12,208,243 | ||||
Level 3 | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 29,334 | 16,301 | $ 55,719 | 23,131 | |||
Level 3 | Carrying Value | Non-recourse mortgage, net | |||||||
Fair Value Inputs, Assets | |||||||
Unamortized deferred financing costs | 100 | 100 | 100 | ||||
Unamortized discount | 11,600 | 11,600 | 800 | ||||
Level 3 | Real estate and intangibles | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 0 | $ 16,301 | 26,385 | 16,301 | |||
Level 3 | Real estate 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 | Real estate and intangibles | Fair Value, Measurements, Nonrecurring | Two Properties | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 6,200 | ||||||
Number of real estate properties (property) | property | 2 | 2 | |||||
Level 3 | Real estate and intangibles | Fair Value, Measurements, Nonrecurring | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Recognized impairment costs | $ 10,900 | $ 16,300 | |||||
Capital expenditures ( in dollars per Sq foot) | $ / ft² | 100 | 100 | |||||
Level 3 | Real estate and intangibles | Fair Value, Measurements, Nonrecurring | Minimum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Market rent (in dollars per Sq foot) | $ / ft² | 10 | 10 | |||||
Level 3 | Real estate and intangibles | Fair Value, Measurements, Nonrecurring | Maximum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Market rent (in dollars per Sq foot) | $ / ft² | 11 | 11 | |||||
Level 3 | Real estate 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 | Real estate and intangibles | Cashflow discount rate | Fair Value, Measurements, Nonrecurring | Minimum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.0700 | 0.0700 | |||||
Level 3 | Real estate and intangibles | Cashflow discount rate | Fair Value, Measurements, Nonrecurring | Maximum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.0900 | 0.0900 | |||||
Level 3 | Real estate 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 | Real estate 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 | Real estate and intangibles | Terminal capitalization rate | Fair Value, Measurements, Nonrecurring | Minimum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.0600 | 0.0600 | |||||
Level 3 | Real estate 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 | Real estate and intangibles | Terminal capitalization rate | Fair Value, Measurements, Nonrecurring | Maximum | Potentially vacant properties | |||||||
Fair Value Inputs, Assets | |||||||
Capitalization rate for the various scenarios | 0.0700 | 0.0700 | |||||
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 | 26,300 | 26,300 | 28,700 | ||||
Unamortized discount | 24,400 | 24,400 | 29,200 | ||||
Lineage Logistics | Level 3 | |||||||
Fair Value Inputs, Assets | |||||||
Reclassification of unrealized gain on investments to net income | $ 76,300 | ||||||
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 issuance of preferred stock | $ 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 | $ 4,100 | |||||
Equity securities | 33,400 | ||||||
WLT (reimbursed transition services) | Level 3 | Preferred Stock | |||||||
Fair Value Inputs, Assets | |||||||
Equity securities | $ 76,800 | $ 76,800 | $ 65,000 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Level 2 | Carrying Value | Senior Unsecured Notes, net | ||
Liabilities: | ||
Debt instrument, fair value | $ 5,651,865 | $ 5,701,913 |
Level 2 | Fair Value | Senior Unsecured Notes, net | ||
Liabilities: | ||
Debt instrument, fair value | 4,943,242 | 5,984,228 |
Level 3 | Carrying Value | Non-recourse mortgage, net | ||
Liabilities: | ||
Debt instrument, fair value | 1,162,814 | 368,524 |
Level 3 | Fair Value | Non-recourse mortgage, net | ||
Liabilities: | ||
Debt instrument, fair value | $ 1,142,390 | $ 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Impairment Charges | $ 29,334 | $ 16,301 | $ 55,719 | $ 23,131 |
Investment Management goodwill | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 0 | 0 | 0 | 0 |
Impairment Charges | 29,334 | 0 | 29,334 | 0 |
Real estate and intangibles | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Fair Value Measurements | 0 | 13,912 | 24,497 | 13,912 |
Impairment Charges | 0 | 16,301 | 26,385 | 16,301 |
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 | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 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) | 22,430,000 | $ 12,870,000 | $ 47,445,000 | $ 30,150,000 | |
Derivative, remaining maturity | 62 months | ||||
Total credit exposure on derivatives | 67,300,000 | $ 67,300,000 | |||
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) | 215,000,000 | 92,600,000 | 528,400,000 | 190,500,000 | |
Individual Counterparty | |||||
Summary of Derivative Instruments | |||||
Total credit exposure on derivatives | 11,200,000 | 11,200,000 | |||
Interest expense | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | (1,500,000) | ||||
Non-operating income | |||||
Summary of Derivative Instruments | |||||
Estimated amount reclassified from OCI to expense (gain) | (26,400,000) | ||||
Designated as Cash Flow Hedging Instruments | |||||
Summary of Derivative Instruments | |||||
Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive Income (Loss) | 4,921,000 | (182,000) | 10,098,000 | (1,273,000) | |
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) | 1,663,000 | 203,000 | 3,019,000 | 3,851,000 | |
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) | $ 1,200,000 | $ 200,000 | $ 3,500,000 | $ 900,000 |
Risk Management and Use of De_4
Risk Management and Use of Derivative Financial Instruments - Information Regarding Derivative Instruments (Details) $ in Thousands | Sep. 30, 2022 USD ($) | Aug. 01, 2022 USD ($) derivative | Dec. 31, 2021 USD ($) |
Derivatives, Fair Value | |||
Derivative assets, fair value | $ 71,328 | $ 24,085 | |
Liability derivatives, fair value | (2,219) | ||
Derivatives Designated as Hedging Instruments | |||
Derivatives, Fair Value | |||
Derivative assets, fair value | 65,155 | 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 | 62,583 | 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 | CPA 18 Merger | |||
Derivatives, Fair Value | |||
Derivative assets, fair value | $ 400 | ||
Number of Instruments | derivative | 5 | ||
Derivatives Designated as Hedging Instruments | Interest rate swaps | Other assets, net | |||
Derivatives, Fair Value | |||
Derivative assets, fair value | 2,557 | ||
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 | 15 | 1 | |
Derivatives Not in Cash Flow Hedging Relationships | |||
Derivatives, Fair Value | |||
Derivative assets, fair value | 6,173 | 4,600 | |
Derivatives Not in Cash Flow Hedging Relationships | Foreign currency collars | Other assets, net | |||
Derivatives, Fair Value | |||
Derivative assets, fair value | 1,573 | ||
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of gain (loss) recognized on derivatives in other comprehensive income (loss) | $ 22,430 | $ 12,870 | $ 47,445 | $ 30,150 |
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) | 20,756 | 12,666 | 44,410 | 26,294 |
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) | 1,663 | 203 | 3,019 | 3,851 |
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) | $ 11 | $ 1 | $ 16 | $ 5 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 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) | $ 4,921 | $ (182) | $ 10,098 | $ (1,273) |
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) | 4,987 | 14 | 10,450 | (553) |
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) | $ (66) | $ (196) | $ (352) | $ (720) |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Amount of Gain (Loss) on Derivatives Recognized in Income | ||||
Total | $ 4,240 | $ 580 | $ 9,480 | $ 1,370 |
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 | 3,737 | 357 | 7,520 | 516 |
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 | 56 | 223 | 387 | 1,354 |
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 | 447 | 0 | 1,573 | 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 | $ 0 | $ 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 | Sep. 30, 2022 USD ($) derivative | Sep. 30, 2022 EUR (€) derivative |
Derivative Disclosure | ||
Fair value | $ 2,572 | |
Interest rate swaps | USD | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 5 | 5 |
Notional Amount | $ 35,176 | |
Fair value | $ 1,410 | |
Interest rate swaps | EUR | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 2 | 2 |
Notional Amount | € | € 46,277 | |
Fair value | $ 1,147 | |
Interest rate caps | EUR | ||
Derivative Disclosure | ||
Number of Instruments | derivative | 1 | 1 |
Notional Amount | € | € 10,530 | |
Fair value | $ 15 |
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 | Sep. 30, 2022 USD ($) derivative | Sep. 30, 2022 EUR (€) derivative | Sep. 30, 2022 GBP (£) derivative |
Derivative Disclosure | |||
Fair value, foreign currency derivatives | $ 64,156 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 71 | 71 | 71 |
Notional Amount | € | € 280,600 | ||
Fair value, foreign currency derivatives | $ 51,271 | ||
Derivatives Designated as Hedging Instruments | Designated as Cash Flow Hedging Instruments | Foreign currency collars | GBP | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 77 | 77 | 77 |
Notional Amount | £ | £ 49,820 | ||
Fair value, foreign currency derivatives | $ 11,312 | ||
Derivatives Not in Cash Flow Hedging Relationships | Foreign currency collars | EUR | |||
Derivative Disclosure | |||
Number of Instruments | derivative | 1 | 1 | 1 |
Notional Amount | € | € 10,600 | ||
Fair value, foreign currency derivatives | $ 1,573 |
Debt - Narratives (Details)
Debt - Narratives (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
Sep. 28, 2022 USD ($) | Apr. 29, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 28, 2022 EUR (€) | Aug. 01, 2022 USD ($) | Apr. 29, 2022 GBP (£) | Apr. 29, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 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 | 1,357,254,000 | $ 1,179,552,000 | ||||||||||||||
Debt financing costs | $ 26,390,000 | $ 26,390,000 | ||||||||||||||
Non Recourse Debt | ||||||||||||||||
Weighted average interest rate (in percentage) | 4.30% | 4.30% | 4.30% | |||||||||||||
Non-recourse mortgages, net | $ 1,162,814,000 | $ 1,162,814,000 | $ 368,524,000 | |||||||||||||
Prepayments of mortgage principal | (10,381,000) | (427,492,000) | ||||||||||||||
Repayments of secured debt | (51,548,000) | (51,013,000) | ||||||||||||||
Decrease in value of balance sheet item due to foreign currency translation | $ (56,053,000) | $ (20,400,000) | $ (109,198,000) | (28,329,000) | ||||||||||||
CPA:18 | ||||||||||||||||
Non Recourse Debt | ||||||||||||||||
Weighted average interest rate (in percentage) | 5.10% | |||||||||||||||
Non-recourse mortgages, net | $ 900,200,000 | |||||||||||||||
Net discount | $ 13,100,000 | |||||||||||||||
Fixed interest rate | ||||||||||||||||
Non Recourse Debt | ||||||||||||||||
Weighted average interest rate (in percentage) | 4.40% | 4.40% | 4.40% | |||||||||||||
Variable interest rate | ||||||||||||||||
Non Recourse Debt | ||||||||||||||||
Weighted average interest rate (in percentage) | 3.90% | 3.90% | 3.90% | |||||||||||||
Unsecured Senior Notes | ||||||||||||||||
Senior Unsecured Credit Facility | ||||||||||||||||
Principal Amount | $ 5,700,000,000 | $ 5,700,000,000 | ||||||||||||||
Debt financing costs | $ 2,300,000 | $ 26,300,000 | $ 26,300,000 | $ 28,700,000 | ||||||||||||
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 | |||||||||||||||
Gain (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% | |||||||||||||||
Unsecured Senior Notes | Euro Senior Notes 3.41% Due 2029 | ||||||||||||||||
Senior Unsecured Credit Facility | ||||||||||||||||
Principal Amount | € | € 150,000,000 | |||||||||||||||
Stated interest rate (percentage) | 3.41% | 3.41% | ||||||||||||||
Debt instrument term (years) | 7 years | |||||||||||||||
Unsecured Senior Notes | Euro Senior Notes 3.70% Due 2032 | ||||||||||||||||
Senior Unsecured Credit Facility | ||||||||||||||||
Principal Amount | € | € 200,000,000 | |||||||||||||||
Stated interest rate (percentage) | 3.70% | 3.70% | ||||||||||||||
Debt instrument term (years) | 10 years | |||||||||||||||
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) | 4.60% | 4.60% | 4.60% | |||||||||||||
Gain (loss) on extinguishment of debt | $ 1,300,000 | $ (32,000,000) | ||||||||||||||
Non Recourse Debt | ||||||||||||||||
Weighted average interest rate (in percentage) | 5.10% | 5.10% | ||||||||||||||
Prepayments of mortgage principal | (10,400,000) | $ (427,500,000) | ||||||||||||||
Repayments of secured debt | (35,600,000) | (27,500,000) | ||||||||||||||
Debt extinguishment cost | $ 32,100,000 | |||||||||||||||
Decrease in value of balance sheet item due to foreign currency translation | (579,100,000) | |||||||||||||||
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 | $ 1,300,000,000 | $ 1,300,000,000 | ||||||||||||||
Debt Instrument borrowing capacity fee (percentage) | 0.20% | |||||||||||||||
Unsecured Revolving Credit Facility | USD | ||||||||||||||||
Senior Unsecured Credit Facility | ||||||||||||||||
Maximum borrowing capacity | $ 1,800,000,000 | |||||||||||||||
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 | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 970,312 | $ 722,075 |
Unamortized discount | 37,597 | |
Unsecured Term Loans: | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 507,652 | 311,479 |
Unsecured Term Loans: | GBP | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | 298,070 | 202,183 |
Unamortized discount | $ 1,600 | 900 |
Unsecured Term Loans: | GBP | GBP LIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.85% | |
Unsecured Term Loans: | EUR | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 209,582 | 109,296 |
Unsecured Term Loans: | EUR | EURIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.85% | |
Unsecured Revolving Credit Facility: | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 462,660 | 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 | 0 | 205,001 |
Unsecured Revolving Credit Facility: | USD | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 446,000 | 0 |
Unsecured Revolving Credit Facility: | USD | LIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.775% | |
Unsecured Revolving Credit Facility: | JPY | ||
Senior Unsecured Credit Facility | ||
Debt outstanding | $ 16,660 | $ 20,935 |
Unsecured Revolving Credit Facility: | JPY | JPY LIBOR | ||
Senior Unsecured Credit Facility | ||
Variable interest rate (percentage) | 0.775% |
Debt - Summary of Senior Unse_2
Debt - Summary of Senior Unsecured Notes (Details) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Senior Unsecured Notes | ||||
Unamortized deferred financing costs | $ 26,390,000 | |||
Unamortized discount, net | 37,597,000 | |||
Unsecured Senior Notes | ||||
Senior Unsecured Notes | ||||
Principal Amount | 5,700,000,000 | |||
Principal amount of debt outstanding | 5,702,550,000 | $ 5,759,815,000 | ||
Unamortized deferred financing costs | 26,300,000 | $ 2,300,000 | 28,700,000 | |
Unamortized discount, net | $ 24,400,000 | 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 | $ 487,400,000 | 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 | $ 487,400,000 | 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 | $ 487,400,000 | 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 | $ 487,400,000 | 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 | 3.41% Senior Notes due 2029 | ||||
Senior Unsecured Notes | ||||
Coupon rate (percentage) | 3.41% | 3.41% | ||
Principal Amount | € | € 150,000,000 | |||
Principal amount of debt outstanding | $ 146,220,000 | 0 | ||
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 | $ 511,770,000 | 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 | 3.70% Senior Notes due 2032 | ||||
Senior Unsecured Notes | ||||
Coupon rate (percentage) | 3.70% | 3.70% | ||
Principal Amount | € | € 200,000,000 | |||
Principal amount of debt outstanding | $ 194,960,000 | 0 | ||
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 | Sep. 30, 2022 USD ($) |
Long-term Debt, by Maturity | |
2022 (remainder) | $ 96,744 |
2023 | 428,242 |
2024 | 1,161,427 |
2025 | 1,769,956 |
2026 | 959,287 |
Thereafter through 2039 | 3,431,674 |
Total principal payments | 7,847,330 |
Unamortized discount, net | (37,597) |
Unamortized deferred financing costs | (26,390) |
Total | $ 7,783,343 |
Stock-Based Compensation and _3
Stock-Based Compensation and Equity - Narratives (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation expense | $ 5,500 | $ 4,400 | $ 23,102 | $ 18,790 | |
Fair value of vested stock | 26,500 | ||||
Deferred compensation obligation | $ 57,012 | $ 57,012 | $ 49,810 | ||
Dividends declared (in dollars per share) | $ 1.061 | $ 1.052 | $ 3.177 | $ 3.150 | |
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 | $ 39,200 | $ 39,200 | |||
Weighted-average remaining term (in years) | 2 years | ||||
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) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
RSA and RSU Awards | |
Shares | |
Nonvested, beginning balance - shares | shares | 306,994 |
Granted - shares | shares | 229,497 |
Vested - shares | shares | (154,028) |
Forfeited - shares | shares | (5,546) |
Adjustments - shares | shares | 0 |
Nonvested, ending balance - shares | shares | 376,917 |
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 | 80.35 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 72.80 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 76.44 |
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 | $ 76.04 |
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 | 84,248 |
Nonvested, ending balance - shares | shares | 461,199 |
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 | 88.78 |
Nonvested, weighted average grant date fair value (in dollars per share) | $ / shares | $ 92 |
Stock-Based Compensation and _5
Stock-Based Compensation and Equity - Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share Reconciliation | ||||
Net income — basic | $ 104,928 | $ 138,547 | $ 389,601 | $ 310,426 |
Net income — diluted | $ 104,928 | $ 138,547 | $ 389,601 | $ 310,426 |
Weighted-average shares outstanding – basic (shares) | 203,093,553 | 185,422,639 | 196,382,433 | 180,753,115 |
Effect of dilutive securities (shares) | 1,004,563 | 589,839 | 882,076 | 570,013 |
Weighted-average shares outstanding – diluted (shares) | 204,098,116 | 186,012,478 | 197,264,509 | 181,323,128 |
Stock-Based Compensation and _6
Stock-Based Compensation and Equity - ATM Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | May 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Net proceeds | $ 218,101 | $ 302,623 | |||
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares of common stock issued (shares) | 2,740,295 | 4,225,624 | |||
Net proceeds | $ 3 | $ 4 | |||
ATM Program | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares of common stock issued (shares) | 0 | 0 | 2,740,295 | 4,225,624 | |
Weighted-average price per share (usd per share) | $ 0 | $ 0 | $ 80.79 | $ 72.50 | |
Net proceeds | $ 0 | $ 0 | $ 218,081 | $ 302,506 | |
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 | 9 Months Ended | ||||||
May 02, 2022 | Aug. 09, 2021 | Jun. 07, 2021 | Jun. 17, 2020 | Sep. 30, 2022 | Sep. 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 | $ 97,456 | $ 457,227 | |||||
Underwriting Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Remaining shares authorized for distribution (shares) | 8,125,537 | ||||||
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) | 2,587,500 | ||||||
Share purchase option (shares) | 675,000 | ||||||
Underwriting Agreement | ATM Forwards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Common stock, shares authorized (shares) | 5,538,037 | ||||||
Average gross offering price (usd per share) | $ 84.81 | ||||||
Average Gross Offering Proceeds at Closing | $ 469,697 | ||||||
Remaining shares authorized for distribution (shares) | 5,538,037 |
Stock-Based Compensation and _8
Stock-Based Compensation and Equity - Settlement of Equity Forwards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Net proceeds | $ 218,101 | $ 302,623 | ||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares of common stock delivered | 2,740,295 | 4,225,624 | ||
Net proceeds | $ 3 | $ 4 | ||
Common Stock | Underwriting Agreement | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares of common stock delivered | 1,337,500 | 2,012,500 | 1,337,500 | 6,535,709 |
Net proceeds | $ 97,456 | $ 147,363 | $ 97,456 | $ 457,227 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | $ 7,641,462 | $ 7,300,767 | $ 7,583,451 | $ 6,878,369 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Non-operating income | (9,263) | (1,283) | (23,783) | (10,704) |
Interest expense | 59,022 | 48,731 | 151,492 | 149,623 |
Other gains and (losses) (Note 9) | 15,020 | (49,219) | 1,021 | (15,576) |
Other Comprehensive (Loss) Income | (32,443) | (7,286) | (76,930) | 2,681 |
Ending equity balance | 8,813,897 | 7,386,697 | 8,813,897 | 7,386,697 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (266,157) | (229,960) | (221,670) | (239,906) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (298,057) | (237,246) | (298,057) | (237,246) |
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | 43,693 | (1,062) | 16,347 | (18,937) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | 67,303 | 12,052 | 67,303 | 12,052 |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning equity balance | (309,850) | (228,898) | (256,705) | (220,969) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Ending equity balance | (365,360) | (249,298) | (365,360) | (249,298) |
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 | (27,522) | (7,468) | (48,144) | 1,408 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (4,921) | 182 | (28,786) | 1,273 |
Other Comprehensive (Loss) Income | (32,443) | (7,286) | (76,930) | 2,681 |
Net current period other comprehensive income attributable to noncontrolling interests | 543 | 543 | (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 | (4,987) | (14) | (10,450) | 553 |
Interest expense | 66 | 196 | 352 | 720 |
Other gains and (losses) (Note 9) | (18,688) | |||
Gains and (Losses) on Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | 28,531 | 12,932 | 61,054 | 29,737 |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | (4,921) | 182 | (10,098) | 1,273 |
Other Comprehensive (Loss) Income | 23,610 | 13,114 | 50,956 | 31,010 |
Net current period other comprehensive income attributable to noncontrolling interests | 0 | 0 | (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 | (4,987) | (14) | (10,450) | 553 |
Interest expense | 66 | 196 | 352 | 720 |
Other gains and (losses) (Note 9) | 0 | |||
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) before reclassifications | (56,053) | (20,400) | (109,198) | (28,329) |
Amounts reclassified from accumulated other comprehensive loss to: | ||||
Total | 0 | 0 | 0 | 0 |
Other Comprehensive (Loss) Income | (56,053) | (20,400) | (109,198) | (28,329) |
Net current period other comprehensive income attributable to noncontrolling interests | 543 | 543 | 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) (Note 9) | 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 | 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) (Note 9) | $ (18,688) |
Income Taxes - Narratives (Deta
Income Taxes - Narratives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 8,200 | $ 9,000 | $ 23,200 | $ 26,500 |
Deferred income tax expense (benefit) (less than) | $ 100 | $ (700) | $ (1,561) | $ (3,012) |
Property Dispositions - Narrati
Property Dispositions - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) property | Sep. 30, 2022 USD ($) property | Sep. 30, 2021 USD ($) property | |
Discontinued Operation Additional Disclosures | ||||
Proceeds from sales of real estate | $ 170,341 | $ 126,697 | ||
Properties disposed of by sale | ||||
Discontinued Operation Additional Disclosures | ||||
Number of properties sold (property) | property | 3 | 5 | 17 | 17 |
Proceeds from sales of real estate | $ 55,200 | $ 28,300 | $ 170,300 | $ 126,700 |
Gain (loss) on sale of real estate, net of tax | (4,700) | $ 1,700 | 37,600 | 30,900 |
Gain (loss) on sales of investments, tax (less than) | $ 2,800 | $ 2,900 | $ 3,800 |
Segment Reporting - Narratives
Segment Reporting - Narratives (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment Reporting Information | ||||
Number of business segments | segment | 2 | |||
Real Estate | ||||
Segment Reporting Information | ||||
Operating property revenues | $ 21,350 | $ 4,050 | $ 30,279 | $ 9,474 |
Real Estate | Hotel in Bloomington, Minnesota | ||||
Segment Reporting Information | ||||
Operating property revenues | $ 3,700 | $ 2,400 | $ 9,100 | $ 4,900 |
Segment Reporting - Income From
Segment Reporting - Income From Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Revenues | $ 383,622 | $ 325,754 | $ 1,076,457 | $ 956,644 |
Operating Expenses | ||||
Depreciation and amortization | 132,181 | 115,657 | 362,654 | 340,327 |
General and administrative | 22,299 | 19,750 | 66,224 | 62,297 |
Reimbursable tenant costs | 18,874 | 15,092 | 52,538 | 45,942 |
Merger and other expenses | 17,667 | (908) | 17,329 | (3,983) |
Property expenses, excluding reimbursable tenant costs | 11,244 | 13,734 | 36,874 | 36,432 |
Operating property expenses | 9,357 | 3,001 | 15,335 | 6,961 |
Stock-based compensation expense | 5,511 | 4,361 | 23,102 | 18,790 |
Impairment charges — real estate | 0 | 16,301 | 26,385 | 16,301 |
Total operating expenses | 246,811 | 188,029 | 632,189 | 526,117 |
Other Income and Expenses | ||||
Interest expense | (59,022) | (48,731) | (151,492) | (149,623) |
Other gains and (losses) | (15,020) | 49,219 | (1,021) | 15,576 |
Gain on change in control of interests | 33,931 | 0 | 33,931 | 0 |
Non-operating income | 9,263 | 1,283 | 23,783 | 10,704 |
Earnings (losses) from equity method investments in real estate | 11,304 | 5,735 | 23,477 | (4,154) |
(Loss) gain on sale of real estate, net | (4,736) | 1,702 | 37,631 | 30,914 |
Total other income and expenses | (24,280) | 9,208 | (33,691) | (96,583) |
Income before income taxes | 112,531 | 146,933 | 410,577 | 333,944 |
Provision for income taxes | (8,263) | (8,347) | (21,598) | (23,434) |
Net Income | 104,268 | 138,586 | 388,979 | 310,510 |
Net loss (income) attributable to noncontrolling interests | 660 | (39) | 622 | (84) |
Net Income Attributable to W. P. Carey | 104,928 | 138,547 | 389,601 | 310,426 |
Real Estate | ||||
Revenues | ||||
Lease revenues | 331,902 | 298,616 | 953,981 | 872,345 |
Income from direct financing leases and loans receivable | 20,637 | 16,754 | 56,794 | 51,917 |
Operating property revenues | 21,350 | 4,050 | 30,279 | 9,474 |
Lease termination income and other | 8,192 | 1,421 | 24,905 | 8,066 |
Revenues | 382,081 | 320,841 | 1,065,959 | 941,802 |
Operating Expenses | ||||
Depreciation and amortization | 132,181 | 115,657 | 362,654 | 340,327 |
General and administrative | 22,299 | 19,750 | 66,224 | 62,297 |
Reimbursable tenant costs | 18,874 | 15,092 | 52,538 | 45,942 |
Merger and other expenses | 17,667 | (908) | 17,326 | (3,998) |
Property expenses, excluding reimbursable tenant costs | 11,244 | 13,734 | 36,874 | 36,432 |
Operating property expenses | 9,357 | 3,001 | 15,335 | 6,961 |
Stock-based compensation expense | 5,511 | 4,361 | 23,102 | 18,790 |
Impairment charges — real estate | 0 | 16,301 | 26,385 | 16,301 |
Total operating expenses | 217,133 | 186,988 | 600,438 | 523,052 |
Other Income and Expenses | ||||
Interest expense | (59,022) | (48,731) | (151,492) | (149,623) |
Other gains and (losses) | (13,960) | 48,172 | 303 | 13,455 |
Gain on change in control of interests | 11,405 | 0 | 11,405 | 0 |
Non-operating income | 9,264 | 1,283 | 23,781 | 10,620 |
Earnings (losses) from equity method investments in real estate | 6,447 | 2,445 | 10,189 | (10,528) |
(Loss) gain on sale of real estate, net | (4,736) | 1,702 | 37,631 | 30,914 |
Total other income and expenses | (50,602) | 4,871 | (68,183) | (105,162) |
Income before income taxes | 114,346 | 138,724 | 397,338 | 313,588 |
Provision for income taxes | (3,631) | (7,827) | (16,499) | (23,372) |
Net Income | 110,715 | 130,897 | 380,839 | 290,216 |
Net loss (income) attributable to noncontrolling interests | 660 | (39) | 622 | (84) |
Net Income Attributable to W. P. Carey | $ 111,375 | $ 130,858 | $ 381,461 | $ 290,132 |
Segment Reporting - Income Fr_2
Segment Reporting - Income From Investment Management (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Revenues | $ 383,622 | $ 325,754 | $ 1,076,457 | $ 956,644 |
Operating Expenses | ||||
Impairment charges — Investment Management goodwill | 29,334 | 0 | 29,334 | 0 |
Reimbursable costs from affiliates | 344 | 1,041 | 2,414 | 3,050 |
Merger and other expenses | 17,667 | (908) | 17,329 | (3,983) |
Total operating expenses | 246,811 | 188,029 | 632,189 | 526,117 |
Other Income and Expenses | ||||
Gain on change in control of interests | 33,931 | 0 | 33,931 | 0 |
Earnings from equity method investments in the Managed Programs | 11,304 | 5,735 | 23,477 | (4,154) |
Other gains and (losses) | (15,020) | 49,219 | (1,021) | 15,576 |
Non-operating (loss) income | 9,263 | 1,283 | 23,783 | 10,704 |
Total other income and expenses | (24,280) | 9,208 | (33,691) | (96,583) |
(Loss) income before income taxes | 112,531 | 146,933 | 410,577 | 333,944 |
Provision for income taxes | (8,263) | (8,347) | (21,598) | (23,434) |
Net loss (income) | 660 | (39) | 622 | (84) |
Net (Loss) Income from Investment Management Attributable to W. P. Carey | 104,928 | 138,547 | 389,601 | 310,426 |
Investment Management | ||||
Revenues | ||||
Revenues | 1,541 | 4,913 | 10,498 | 14,842 |
Operating Expenses | ||||
Impairment charges — Investment Management goodwill | 29,334 | 0 | 29,334 | 0 |
Reimbursable costs from affiliates | 344 | 1,041 | 2,414 | 3,050 |
Merger and other expenses | 0 | 0 | 3 | 15 |
Total operating expenses | 29,678 | 1,041 | 31,751 | 3,065 |
Other Income and Expenses | ||||
Gain on change in control of interests | 22,526 | 0 | 22,526 | 0 |
Earnings from equity method investments in the Managed Programs | 4,857 | 3,290 | 13,288 | 6,374 |
Other gains and (losses) | (1,060) | 1,047 | (1,324) | 2,121 |
Non-operating (loss) income | (1) | 0 | 2 | 84 |
Total other income and expenses | 26,322 | 4,337 | 34,492 | 8,579 |
(Loss) income before income taxes | (1,815) | 8,209 | 13,239 | 20,356 |
Provision for income taxes | (4,632) | (520) | (5,099) | (62) |
Net (Loss) Income from Investment Management Attributable to W. P. Carey | (6,447) | 7,689 | 8,140 | 20,294 |
Investment Management | Asset management and other revenue | ||||
Revenues | ||||
Operating property revenues | 1,197 | 3,872 | 8,084 | 11,792 |
Investment Management | Reimbursable costs from affiliates | ||||
Revenues | ||||
Operating property revenues | $ 344 | $ 1,041 | $ 2,414 | $ 3,050 |
Segment Reporting - Total Compa
Segment Reporting - Total Company (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information Profit Loss | ||||
Revenues | $ 383,622 | $ 325,754 | $ 1,076,457 | $ 956,644 |
Operating expenses | 246,811 | 188,029 | 632,189 | 526,117 |
Other income and (expenses) | (24,280) | 9,208 | (33,691) | (96,583) |
Provision for income taxes | (8,263) | (8,347) | (21,598) | (23,434) |
Net loss (income) attributable to noncontrolling interests | 660 | (39) | 622 | (84) |
Net income attributable to W. P. Carey | $ 104,928 | $ 138,547 | $ 389,601 | $ 310,426 |
Segment Reporting - Segment Ass
Segment Reporting - Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Assets | |||
Total assets | [1] | $ 17,774,842 | $ 15,480,630 |
Real Estate | |||
Assets | |||
Total assets | 17,747,813 | 15,344,799 | |
Investment Management | |||
Assets | |||
Total assets | $ 27,029 | $ 135,831 | |
[1] See Note 2 for details related to variable interest entities (“VIEs”). |
Subsequent Events (Details)
Subsequent Events (Details) - Watermark Lodging Trust - Common Stock - Affiliated Entity - USD ($) $ in Millions | 1 Months Ended | ||
Oct. 31, 2022 | Sep. 30, 2022 | Jan. 31, 2022 | |
Subsequent Event | |||
Shares owned (shares) | 12,208,243 | 12,208,243 | |
Subsequent Events | |||
Subsequent Event | |||
Proceeds from sale of shares | $ 82.6 | ||
Shares owned (shares) | 12,208,243 |