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Equity Investment in Real Estate and the Managed REITs (Tables)
 6 Months Ended
Jun. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments
The following table presents net income from equity investments in real estate and the Managed REITs, which represents our proportionate share of the income or losses of these investments as well as certain adjustments related to other-than-temporary impairment charges and amortization of basis differences related to purchase accounting adjustments (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Proportionate share of earnings from equity investments in the Managed REITs
$
769

 
$
2,717

 
$
1,549

 
$
3,544

Amortization of basis differences on equity investments in the Managed REITs
(118
)
 
(1,655
)
 
(508
)
 
(2,460
)
Other-than-temporary impairment charges on the Special Member Interest in CPA®:16 – Global’s operating partnership
—

 
(2,844
)
 
(735
)
 
(5,528
)
Distributions of Available Cash (Note 4)
5,235

 
8,677

 
15,681

 
16,568

Deferred revenue earned (Note 4)
—

 
2,123

 
786

 
4,246

Total equity earnings from the Managed REITs
5,886

 
9,018

 
16,773

 
16,370

Equity earnings from other equity investments
3,662

 
25,076

 
7,618

 
29,932

Amortization of basis differences on other equity investments
(96
)
 
(1,553
)
 
(677
)
 
(3,105
)
Net income from equity investments in real estate and the Managed REITs
$
9,452

 
$
32,541

 
$
23,714

 
$
43,197

The following table sets forth certain information about our investments in the Managed REITs (dollars in thousands):
 
 
% of Outstanding Shares Owned at
 
Carrying Amount of Investment at
Fund
 
June 30, 2014
 
December 31, 2013
 
June 30, 2014 (a) (b)
 
December 31, 2013 (b)
CPA®:16 – Global (c)
 
100.000
%
 
18.533
%
 
$
—

 
$
282,520

CPA®:16 – Global operating partnership (d)
 
100.000
%
 
0.015
%
 
—

 
813

CPA®:17 – Global (e)
 
2.295
%
 
1.910
%
 
69,485

 
57,753

CPA®:17 – Global operating partnership (f)
 
0.009
%
 
0.009
%
 
—

 
—

CPA®:18 – Global
 
0.101
%
 
0.127
%
 
1,226

 
320

CPA®:18 – Global operating partnership (g)
 
0.034
%
 
0.034
%
 
209

 
209

CWI
 
0.918
%
 
0.538
%
 
6,953

 
3,369

CWI operating partnership (h)
 
0.015
%
 
0.015
%
 
—

 
—

 
 
 
 
 
 
$
77,873

 
$
344,984

___________
(a)
Includes asset management fees receivable, for which 240,372 shares, 21,554 class A shares and 59,469 shares of CPA®:17 – Global, CPA®:18 – Global and CWI, respectively, were issued during the third quarter of 2014.
(b)
At June 30, 2014 and December 31, 2013, the aggregate unamortized basis differences on our equity investments in the Management REITs were $15.1 million and $80.5 million, respectively.
(c)
On January 31, 2014, we acquired all the remaining interests in CPA®:16 – Global, which merged into one of our subsidiaries with our subsidiary as the surviving entity, in the CPA®:16 Merger (Note 3). We received distributions of $6.4 million and $12.5 million from this affiliate during January 2014 and the six months ended June 30, 2013, respectively.
(d)
During January 2014 and the six months ended June 30, 2013, we recognized other-than-temporary impairment charges of $0.7 million and $5.5 million, respectively, on this investment to reduce the carrying value of our interest in the investment to its estimated fair value (Note 9). In addition, we received distributions of $4.8 million and $7.4 million from this investment during January 2014 and the six months ended June 30, 2013, respectively. On January 31, 2014, we acquired the remaining interests in CPA®:16 – Global’s operating partnership and now consolidate this entity.
(e)
We received distributions of $2.1 million and $1.3 million from this affiliate during the six months ended June 30, 2014 and 2013, respectively.
(f)
We received distributions of $9.3 million and $9.1 million from this affiliate during the six months ended June 30, 2014, and 2013, respectively.
(g)
We received distributions of $0.6 million from this affiliate, which commenced operations in May 2013, during the six months ended June 30, 2014.
(h)
We received distributions of $1.1 million from this affiliate during the six months ended June 30, 2014.

The following tables present estimated combined summarized financial information for the Managed REITs. Certain prior year amounts have been retrospectively adjusted to reflect the impact of discontinued operations. Amounts provided are expected total amounts attributable to the Managed REITs and do not represent our proportionate share (in thousands):
 
June 30, 2014
 
December 31, 2013
Real estate, net
$
5,433,063

 
$
7,218,177

Other assets
2,129,614

 
2,128,862

Total assets
7,562,677

 
9,347,039

Debt
(3,128,688
)
 
(4,237,044
)
Accounts payable, accrued expenses and other liabilities
(451,457
)
 
(571,097
)
Total liabilities
(3,580,145
)
 
(4,808,141
)
Noncontrolling interests
(163,943
)
 
(192,492
)
Stockholders’ equity
$
3,818,589

 
$
4,346,406


 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Revenues
$
224,594

 
$
191,171

 
$
365,819

 
$
369,003

Expenses
(196,673
)
 
(180,018
)
 
(331,155
)
 
(340,649
)
Income from continuing operations
$
27,921

 
$
11,153

 
$
34,664

 
$
28,354

Net income attributable to the Managed REITs (a) (b)
$
40,469

 
$
16,099

 
$
47,211

 
$
26,721

 ___________
(a)
Inclusive of impairment charges recognized by the Managed REITs totaling $12.4 million and $21.7 million during the three and six months ended June 30, 2013, respectively. These impairment charges reduced our income earned from these investments by approximately $2.3 million and $4.0 million during the three and six months ended June 30, 2013, respectively. There were no such impairment charges recognized by the Managed REITs during the three and six months ended June 30, 2014.
(b)
Amounts included net losses on sale of real estate recorded by the Managed REITs totaling $12.5 million for each of the three and six months ended June 30, 2014, respectively, and $16.7 million and $14.0 million during the three and six months ended June 30, 2013, respectively.
The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed REITs, and their respective carrying values (dollars in thousands):
 
 
 
 
Ownership Interest at
 
Carrying Value at
Lessee
 
Co-owner(s)
 
June 30, 2014
 
June 30, 2014
 
December 31, 2013
Same Store Equity Investments (a) (b):
 
 
 
 
 
 
 
 
C1000 Logistiek Vastgoed B.V. (c) 
 
CPA®:17 – Global
 
15%
 
$
13,782

 
$
13,673

Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH
 
CPA®:17 – Global
 
33%
 
7,584

 
7,267

Wanbishi Archives Co. Ltd.
 
CPA®:17 – Global
 
3%
 
389

 
395

 
 
 
 
 
 
21,755

 
21,335

Equity Investments Consolidated After the CPA®:16 Merger (d): 
 
 
 
 
Schuler A.G. (a) 
 
CPA®:16 – Global
 
100%
 
—

 
65,798

Hellweg Die Profi-Baumärkte GmbH 
& Co. KG (Hellweg 2) (a) (e)
 
CPA®:16 – Global/ CPA®:17 – Global
 
63%
 
—

 
27,923

Advanced Micro Devices
 
CPA®:16 – Global
 
100%
 
—

 
22,392

The Upper Deck Company
 
CPA®:16 – Global
 
100%
 
—

 
7,518

Del Monte Corporation
 
CPA®:16 – Global
 
100%
 
—

 
7,145

Builders FirstSource, Inc.
 
CPA®:16 – Global
 
100%
 
—

 
4,968

PetSmart, Inc.
 
CPA®:16 – Global
 
100%
 
—

 
3,877

Consolidated Systems, Inc.
 
CPA®:16 – Global
 
100%
 
—

 
3,176

SaarOTEC (a) 
 
CPA®:16 – Global
 
100%
 
—

 
(639
)
 
 
 
 
 
 
—

 
142,158

Equity Investments Acquired in the CPA®:16 Merger
 
 
 
 
 
The New York Times Company (f)
 
CPA®:16 – Global/
CPA®:17 – Global
 
45%
 
74,240

 
21,543

Frontier Spinning Mills, Inc.
 
CPA®:17 – Global
 
40%
 
15,545

 
—

Actebis Peacock GmbH (a)
 
CPA®:17 – Global
 
30%
 
6,707

 
—







96,492


21,543

Recently Acquired Equity Investment
 
 
 
 
 
 
 
 
Beach House JV, LLC (g)
 
Third Party
 
N/A(g)
 
15,105

 
—

 
 
 
 
 
 
$
133,352

 
$
185,036

___________
(a)
The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the foreign currency.
(b)
Represents equity investments we acquired prior to January 1, 2013.
(c)
This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. For this investment, the co-obligor is CPA®:17 – Global and the amount due under the arrangement was approximately $93.8 million at June 30, 2014. Of this amount, $14.1 million represents the amount we agreed to pay and is included within the carrying value of the investment at June 30, 2014.
(d)
We acquired the remaining interests in these investments from CPA®:16 – Global in the CPA®:16 Merger. Subsequent to the CPA®:16 Merger, we consolidate these wholly-owned or majority-owned investments (Note 3).
(e)
We acquired an additional 25% interest in this investment in the CPA®:16 Merger. The remaining interest in this investment is owned by CPA®:17 – Global.
(f)
We acquired an additional 27% interest in this investment in the CPA®:16 Merger. The remaining interest in this investment is owned by CPA®:17 – Global.
(g)
During the six months ended June 30, 2014, we received a preferred equity position in Beach House JV, LLC, as part of the sale of the Soho House investment. The preferred equity interest, which is redeemable on March 13, 2019, has an annual interest rate of 8.5%. The rights under these preferred units allow us to have significant influence over the entity. Accordingly, we account for this investment using the equity method of accounting. We own 100 redeemable preferred units and zero common units of Beach House JV LLC.