Equity Investments in the Managed Programs and Real Estate (Tables)

3 Months Ended

Mar. 31, 2018

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

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	March 31, 2018		December 31, 2017
The New York Times Company (a)	CPA:17 – Global	45%	$	69,293	$	69,401
Frontier Spinning Mills, Inc.	CPA:17 – Global	40%	24,167		24,153
Beach House JV, LLC (b)	Third Party	N/A	15,105		15,105
ALSO Actebis GmbH (c)	CPA:17 – Global	30%	12,161		12,009
Jumbo Logistiek Vastgoed B.V. (c) (d)	CPA:17 – Global	15%	10,405		10,661
Wagon Automotive GmbH (c)	CPA:17 – Global	33%	8,278		8,386
Wanbishi Archives Co. Ltd. (e)	CPA:17 – Global	3%	1,108		334
			$	140,517	$	140,049

__________

(a) In January 2018, this tenant exercised its option to repurchase the property it is leasing from the jointly owned investment with our affiliate, CPA:17 – Global, for $250.0 million (our proportionate share would be $112.5 million). There can be no assurance that such repurchase will be completed.

(b) This investment is in the form of a preferred equity interest.

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

(d) 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 $77.9 million at March 31, 2018. Of this amount, $11.7 million represents the amount we are liable for and is included within the carrying value of the investment at March 31, 2018.

(e) The carrying value of this investment is affected by fluctuations in the exchange rate of the yen. In January 2018, we contributed $0.7 million to this jointly owned investment in connection with the repayment of the non-recourse mortgage loan encumbering the investment.

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 March 31,
	2018			2017
Distributions of Available Cash (Note 3)	$	10,502		$	11,793
Proportionate share of equity in earnings of equity investments in the Managed Programs	1,863			2,199
Amortization of basis differences on equity method investments in the Managed Programs	(398		)	(290		)
Total equity in earnings of equity method investments in the Managed Programs	11,967			13,702
Equity in earnings of equity method investments in real estate	3,903			2,944
Amortization of basis differences on equity method investments in real estate	(545		)	(872		)
Total equity in earnings of equity method investments in real estate	3,358			2,072
Equity in earnings of equity method investments in the Managed Programs and real estate	$	15,325		$	15,774

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	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
CPA:17 – Global	4.377	%	4.186	%	$	132,950	$	125,676
CPA:17 – Global operating partnership	0.009	%	0.009	%	—		—
CPA:18 – Global	2.761	%	2.540	%	31,040		28,433
CPA:18 – Global operating partnership	0.034	%	0.034	%	209		209
CWI 1	2.340	%	2.119	%	30,175		26,810
CWI 1 operating partnership	0.015	%	0.015	%	186		186
CWI 2	2.033	%	1.786	%	18,961		16,495
CWI 2 operating partnership	0.015	%	0.015	%	300		300
CESH I (a)	2.430	%	2.430	%	3,730		3,299
					$	217,551	$	201,408

__________

(a) Investment is accounted for at fair value.