Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of capital leases net investment In direct financing leases

Finance Receivables

Investments in direct financing leases and loans receivable are summarized as follows (in thousands):

	Maturity Date	December 31,
		2021		2020
Net investments in direct financing leases (a)	N/A	$	572,205	$	711,974
Sale-leaseback transactions accounted for as loans receivable (b)	2038 - 2052	217,229		—
Secured loans receivable (a)	2022 - 2025	24,143		24,143
		$	813,577	$	736,117

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(a)Amounts are net of allowance for credit losses, as disclosed below.

(b)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Such investments were completed during the year ended December 31, 2021 and are described in the table below under Loans Receivable. Maturity dates reflect the current lease maturity dates.

Net Investments in Direct Financing Leases

Net investments in direct financing leases is summarized as follows (in thousands):

	December 31,
	2021		2020
Lease payments receivable	$	414,002	$	527,691
Unguaranteed residual value	545,896		677,722
	959,898		1,205,413
Less: unearned income	(370,353)		(476,365)
Less: allowance for credit losses (a)	(17,340)		(17,074)
	$	572,205	$	711,974

__________

(a)During the years ended December 31, 2021 and 2020, we recorded a net allowance for credit losses of $0.3 million and $9.7 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income.

Scheduled future lease payments to be received

Scheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable direct financing leases at December 31, 2021 are as follows (in thousands):

Years Ending December 31,	Total
2022	$	57,056
2023	55,840
2024	52,535
2025	45,808
2026	44,347
Thereafter	158,416
Total	$	414,002

See Note 4 for scheduled future lease payments to be received under non-cancelable operating leases.

Schedule of sales-leaseback transactions

During 2021, we entered into the following sale-leasebacks, which were deemed to be loans 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, Germany and Czech Republic	4	12/20/2021	Industrial	$	29,166
Various, Netherlands	9	12/29/2021	Retail	43,731
Santa Rosa, California; Pocatello, Idaho; and White City, Oregon	3	12/29/2021	Industrial	144,103
	16			$	217,000

Schedule of Financing Receivable Credit Quality Indicators superscript information

A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable (Note 3) and allowance for credit losses, is as follows (dollars in thousands):

	Number of Tenants / Obligors at December 31,		Carrying Value at December 31,
Internal Credit Quality Indicator	2021	2020	2021		2020
1 – 3	17	18	$	703,280	$	587,103
4	9	9	140,230		141,944
5	—	2	—		36,737
			$	843,510	$	765,784