Equity Investments in the Managed Programs and Real Estate

We own interests in certain unconsolidated real estate investments with the Managed Programs and also own interests in the Managed Programs. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences).

The following table presents Equity in earnings of equity method investments in the Managed Programs and real estate, which represents our proportionate share of the income or losses of these investments, as well as certain adjustments related to amortization of basis differences related to purchase accounting adjustments (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Distributions of Available Cash (Note 3)	$	10,876		$	10,182		$	32,018		$	28,244
Proportionate share of earnings (losses) from equity investments in the Managed Programs	2,962			(431		)	7,396			565
Amortization of basis differences on equity investments in the Managed Programs	(265		)	(208		)	(756		)	(582		)
Total equity earnings from the Managed Programs	13,573			9,543			38,658			28,227
Equity earnings from other equity investments	4,197			4,034			12,456			13,188
Amortization of basis differences on other equity investments	(967		)	(942		)	(2,871		)	(2,785		)
Equity in earnings of equity method investments in the Managed Programs and real estate	$	16,803		$	12,635		$	48,243		$	38,630

Managed Programs

We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor and through our ownership of their common stock, we do not exert control over, but we do have the ability to exercise significant influence on, the Managed Programs. Operating results of the Managed REITs and CESH I are included in the Owned Real Estate segment and operating results of CCIF 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, 2016		December 31, 2015		September 30, 2016		December 31, 2015
CPA^®:17 – Global	3.358	%	3.087	%	$	98,702	$	87,912
CPA^®:17 – Global operating partnership	0.009	%	0.009	%	—		—
CPA^®:18 – Global	1.384	%	0.735	%	16,007		9,279
CPA^®:18 – Global operating partnership	0.034	%	0.034	%	209		209
CWI 1	1.114	%	1.131	%	11,731		12,619
CWI 1 operating partnership	0.015	%	0.015	%	—		—
CWI 2	0.633	%	0.379	%	3,771		949
CWI 2 operating partnership	0.015	%	0.015	%	300		300
CCIF	16.514	%	47.882	%	23,083		22,214
CESH I ^(a)	2.121	%	—	%	908		—
					$	154,711	$	133,482

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(a)	Investment is accounted for at fair value.

CPA^®:17 – Global — The carrying value of our investment in CPA^®:17 – Global at September 30, 2016 includes asset management fees receivable, for which 119,368 shares of CPA^®:17 – Global common stock were issued during the fourth quarter of 2016. We received distributions from this investment during the nine months ended September 30, 2016 and 2015 of $5.5 million and $4.5 million, respectively. We received distributions from our investment in the CPA^®:17 – Global operating partnership during the nine months ended September 30, 2016 and 2015 of $17.8 million and $17.7 million, respectively.

CPA^®:18 – Global — The carrying value of our investment in CPA^®:18 – Global at September 30, 2016 includes asset management fees receivable, for which 107,154 shares of CPA^®:18 – Global class A common stock were issued during the fourth quarter of 2016. We received distributions from this investment during the nine months ended September 30, 2016 and 2015 of $0.6 million and $0.1 million, respectively. We received distributions from our investment in the CPA^®:18 – Global operating partnership during the nine months ended September 30, 2016 and 2015 of $5.3 million and $2.3 million, respectively.

CWI 1 — We received distributions from this investment during both the nine months ended September 30, 2016 and 2015 of $0.6 million. We received distributions from our investment in the CWI 1 operating partnership during the nine months ended September 30, 2016 and 2015 of $6.9 million and $6.4 million, respectively.

CWI 2 — The carrying value of our investment in CWI 2 at September 30, 2016 includes asset management fees receivable, for which 46,042 shares of CWI 2 class A common stock were issued during the fourth quarter of 2016. We received distributions from this investment during the nine months ended September 30, 2016 of less than $0.1 million. We did not receive distributions from this investment during the nine months ended September 30, 2015. On March 27, 2015, we purchased a 0.015% special general partnership interest in the CWI 2 operating partnership for $0.3 million. This special general partnership interest entitles us to receive distributions of our proportionate share of earnings up to 10% of the Available Cash from the CWI 2 operating partnership (Note 3). We received distributions from our investment in the CWI 2 operating partnership during the nine months ended September 30, 2016 and 2015 of $2.0 million and $0.2 million, respectively.

CCIF — We received $0.6 million of distributions from our investment in CCIF during the nine months ended September 30, 2016. We did not receive distributions from this investment during the nine months ended September 30, 2015.

CESH I — Under the limited partnership agreement we have with CESH I, we pay all organization and offering costs regarding CESH I, and instead of being reimbursed by CESH I on a dollar-for-dollar basis for those costs, we receive limited partnership units of CESH I equal to 2.5% of its gross offering proceeds (Note 3). We have elected to account for our investment in CESH I at fair value by selecting the equity method fair value option available under U.S. GAAP. We did not receive distributions from this investment during the nine months ended September 30, 2016 or 2015.

At September 30, 2016 and December 31, 2015, the aggregate unamortized basis differences on our equity investments in the Managed Programs were $30.7 million and $27.4 million, respectively.

Interests in Other Unconsolidated Real Estate Investments

We own equity interests in single-tenant net-leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting. Earnings for each investment are recognized in accordance with each respective investment agreement.

The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands):



			Carrying Value at
Lessee	Co-owner	Ownership Interest	September 30, 2016		December 31, 2015
The New York Times Company	CPA^®:17 – Global	45%	$	69,772	$	70,976
Frontier Spinning Mills, Inc.	CPA^®:17 – Global	40%	24,149		24,288
Beach House JV, LLC ^(a)	Third Party	N/A	15,105		15,318
Actebis Peacock GmbH ^(b)	CPA^®:17 – Global	30%	11,981		12,186
C1000 Logistiek Vastgoed B.V. ^{(b) (c)}	CPA^®:17 – Global	15%	9,481		9,381
Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH ^(b)	CPA^®:17 – Global	33%	9,113		9,507
Wanbishi Archives Co. Ltd. ^(d)	CPA^®:17 – Global	3%	378		335
			$	139,979	$	141,991

__________


(a)	This investment is a preferred equity position.


(b)	The carrying value of this investment is affected by fluctuations in the exchange rate of the euro.

(c)

This investment represents a tenancy-in-common interest, whereby the property is encumbered by the debt for which we are jointly and severally liable. The co-obligor is CPA^®:17 – Global and the amount due under the arrangement was approximately $72.8 million at September 30, 2016. Of this amount, $10.9 million represents the amount we agreed to pay and is included within the carrying value of the investment at September 30, 2016.


(d)	The carrying value of this investment is affected by fluctuations in the exchange rate of the yen.

We received aggregate distributions of $12.4 million and $9.7 million from our other unconsolidated real estate investments for the nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016 and December 31, 2015, the aggregate unamortized basis differences on our unconsolidated real estate investments were $6.6 million and $6.7 million, respectively.