Equity Method Investments (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

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, 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).

(b)Investment is accounted for at fair value.

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.

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

(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.

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

(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.