Rental Properties

12 Months Ended

Dec. 31, 2016

Real Estate [Abstract]

Rental Properties

Rental Properties

The following table summarizes the carrying amounts of rental properties as of December 31, 2016 and 2015 (in thousands):

	2016			2015
Buildings and improvements	$	3,272,865		$	2,837,611
Furniture, fixtures & equipment	40,684			34,423
Land	917,748			687,468
	4,231,297			3,559,502
Accumulated depreciation	(635,535		)	(534,303		)
Total	$	3,595,762		$	3,025,199

Depreciation expense on rental properties was $103.9 million, $85.9 million and $63.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.

On August 1, 2015, per the terms of the mortgage note agreement, the borrower for Camelback Mountain Resort exercised its option to convert the mortgage note agreement to a lease agreement. As a result, the Company recorded the carrying value of its investment into rental property, which approximated the fair value of the property on the conversion date. There was no gain or loss recognized on this transaction. The property is leased pursuant to a triple net lease with a 20-year term.

During the year ended December 31, 2015, the Company completed the sale of a theatre located in Los Angeles, California for net proceeds of $42.7 million and recognized a gain on sale of $23.7 million. In addition, during the year ended December 31, 2015, the Company sold three land parcels for net proceeds of $4.0 million and recognized a net gain of $0.1 million. The results of operations of these properties have not been classified within discontinued operations.

On June 27, 2016, the Company completed the acquisition of six theatre properties from Carmike for a net purchase price of $94.1 million. The theatres are located in five states. Five of the theatre properties are leased on a triple net basis under a master lease agreement to Carmike with the tenant responsible for all taxes, costs and expenses arising from the use or operation of the properties. The remaining initial lease term is approximately 15 years. The theatre located in Pennslyvania is leased under a separate triple net lease with the remaining initial lease term of approximately five years.

During the year ended December 31, 2016, pursuant to tenant purchase options, the Company completed the sale of two public charter schools located in Colorado for net proceeds totaling $16.6 million and recognized gains on sale totaling $2.8 million. In addition, during the year ended December 31, 2016, the Company completed the sale of three retail parcels located in Texas for total net proceeds of $5.3 million and recognized gains on sale totaling $2.5 million. The Company also completed the sale of a land parcel at Adelaar for net proceeds of $1.5 million and no gain or loss was recognized. The results of operations of these properties have not been classified within discontinued operations.

During the year ended December 31, 2016, the Company recognized a gain on insurance recovery of $4.5 million. This gain is included in other income in the accompanying consolidated statements of income. The gain on insurance recovery related to insurance proceeds received for damage from a fire at one of the Company's ski areas located in Ohio.