We own interests in the Managed Programs and certain unconsolidated real estate investments with CPA:18 – Global and third parties. 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) or at fair value by electing the equity method fair value option available under GAAP.

We classify distributions received from equity method investments using the cumulative earnings approach. In general, distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.

We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor, we do not exert control over, but we do have the ability to exercise significant influence over, the Managed Programs. Operating results of the Managed Programs are included in the Investment Management segment.


	% of Outstanding Interests Owned at				Carrying Amount of Investment at
Fund	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
CPA:18 – Global (a)	5.716	%	5.578	%	$	63,577	$	60,836
CPA:18 – Global operating partnership	0.034	%	0.034	%	209		209
CESH (b)	2.430	%	2.430	%	3,850		3,689
					$	67,636	$	64,734

(a)During the three months ended March 31, 2022, we received certain asset management revenue from CPA:18 – Global in shares of its common stock, which increased our ownership percentage in CPA:18 – Global. Effective as of March 1, 2022, we began receiving asset management revenue from CPA:18 – Global in cash in light of the Proposed Merger (Note 1).

CPA:18 – Global — We received distributions from this investment during the three months ended March 31, 2022 and 2021 of $0.5 million and $0.4 million, respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the three months ended March 31, 2022 and 2021 of $2.6 million and $1.5 million, respectively (Note 3).

CESH — We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH on a one quarter lag; therefore, the balance of our equity method investment in CESH recorded as of March 31, 2022 is based on the estimated fair value of our investment as of December 31, 2021. We received distributions from this investment during the three months ended March 31, 2022 of $1.2 million. We did not receive a distribution from this investment during the three months ended March 31, 2021.

At March 31, 2022 and December 31, 2021, the aggregate unamortized basis differences on our equity method investments in the Managed Programs were $22.0 million and $23.3 million, respectively.

We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with affiliates or third parties. We account for these investments under the equity method of accounting. In addition, we own shares of WLT common stock, which we accounted for under the equity method of accounting as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022, as described in Note 8. Operating results of our unconsolidated real estate investments are included in the Real Estate segment.

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


			Carrying Value at
Lessee/Fund/Description	Co-owner	Ownership Interest	March 31, 2022		December 31, 2021
Las Vegas Retail Complex (a)	Third Party	N/A	$	122,067	$	104,114
Johnson Self Storage	Third Party	90%	67,009		67,573
Kesko Senukai (b)	Third Party	70%	42,873		41,955
Harmon Retail Corner (c)	Third Party	15%	24,423		24,435
State Farm Mutual Automobile Insurance Co.	CPA:18 – Global	50%	6,743		7,129
Apply Sørco AS (d)	CPA:18 – Global	49%	6,018		5,909
Fortenova Grupa d.d. (b)	CPA:18 – Global	20%	2,603		2,936
WLT (e)	WLT	N/A	—		33,392
Bank Pekao (b) (f)	CPA:18 – Global	50%	—		4,460
			$	271,736	$	291,903

(a)On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $224.9 million for a retail complex in Las Vegas, Nevada. Through March 31, 2022, we funded $121.7 million, including $18.0 million during the three months ended March 31, 2022. Interest income from this investment was $1.6 million for the three months ended March 31, 2022, which was recognized within Earnings (losses) from equity method investments in our consolidated statements of income.

(c)This investment is reported using the hypothetical liquidation at book value (“HLBV”) model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.

(e)We own 12,208,243 shares of common stock of WLT, which we accounted for as an equity method investment in real estate as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022 (Note 8).

(f)We recognized our $4.6 million proportionate share of an impairment charge recorded on this investment during the three months ended March 31, 2022, which was reflected within Earnings (losses) from equity method investments in our consolidated statements of income. The estimated fair value of the investment is based on the estimated selling price of the international office facility owned by the investment, and the fair value of the non-recourse mortgage encumbering the property also approximates the fair value of the property.

We received aggregate distributions of $4.3 million and $2.7 million from our other unconsolidated real estate investments for the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022 and December 31, 2021, the aggregate unamortized basis differences on our unconsolidated real estate investments were $7.8 million and $7.9 million, respectively.