Land, Buildings and Improvements and Assets Held for Sale (Tables)

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

Schedule of Land, Building and Improvements

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):

	March 31, 2020			December 31, 2019
Land	$	1,868,126		$	1,875,065
Buildings and improvements	7,960,373			7,828,439
Real estate under construction	107,977			69,604
Less: Accumulated depreciation	(1,005,110		)	(950,452		)
	$	8,931,366		$	8,822,656

Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands):

	March 31, 2020			December 31, 2019
Land	$	10,452		$	10,452
Buildings and improvements	72,669			72,631
Less: Accumulated depreciation	(11,917		)	(11,241		)
	$	71,204		$	71,842

Real Estate Acquired

During the three months ended March 31, 2020, we entered into the following investments, which were deemed to be real estate asset acquisitions, at a total cost of $204.6 million, including land of $30.7 million, buildings of $145.9 million (including capitalized acquisition-related costs of $8.6 million), and net lease intangibles of $28.0 million (dollars in thousands):

Property Location(s)	Number of Properties	Date of Acquisition	Property Type	Total Capitalized Costs
Newark, United Kingdom (a)	1	1/6/2020	Warehouse	$	111,546
Aurora, Oregon (b)	1	1/24/2020	Industrial	28,755
Vojens, Denmark (a) (c)	1	1/31/2020	Warehouse	10,611
Kitzingen, Germany (a)	1	3/9/2020	Office	53,666
				$	204,578

__________

(a) Amount reflects the applicable exchange rate on the date of acquisition.

(b) Amount includes approximately $5.0 million in contingent consideration that will be released to the tenant/seller upon the tenant securing an easement on the property.

(c)

We also recorded an estimated deferred tax liability of $0.5 million, with a corresponding increase to the asset value, since we assumed the tax basis of the acquired property

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 March 31,
	2020		2019
Lease income — fixed	$	238,969	$	215,118
Lease income — variable (a)	23,080		21,263
Total operating lease income (b)	$	262,049	$	236,381

__________

(a) Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

(b)

Excludes $20.1 million and $26.6 million for the three months ended March 31, 2020 and 2019, respectively, of interest income from direct financing leases that is included in Lease revenues in the consolidated statements of income.

Disclosure of Long Lived Assets Held-for-sale

Below is a summary of our properties held for sale (in thousands):

	March 31, 2020		December 31, 2019
Land, buildings and improvements	$	—	$	105,573
Accumulated depreciation and amortization	—		(1,563		)
Assets held for sale, net	$	—	$	104,010