Real Estate (Tables)

12 Months Ended

Dec. 31, 2018

Real Estate [Abstract]

Schedule of real estate assets

The Company's real estate assets were comprised of the following ($ in thousands):

	Net Lease(1)			Operating Properties			Total
As of December 31, 2018
Land, at cost	$	336,740		$	133,599		$	470,339
Buildings and improvements, at cost	1,487,270			118,724			1,605,994
Less: accumulated depreciation	(287,516		)	(17,798		)	(305,314		)
Real estate, net	1,536,494			234,525			1,771,019
Real estate available and held for sale (2)	1,055			21,496			22,551
Total real estate	$	1,537,549		$	256,021		$	1,793,570
As of December 31, 2017
Land, at cost	$	219,092		$	203,278		$	422,370
Buildings and improvements, at cost	888,959			318,107			1,207,066
Less: accumulated depreciation	(292,268		)	(55,137		)	(347,405		)
Real estate, net	815,783			466,248			1,282,031
Real estate available and held for sale (2)	—			68,588			68,588
Total real estate	$	815,783		$	534,836		$	1,350,619

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(1) On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $743.6 million to "Real estate, net" on the Company's consolidated balance sheet.

(2) As of December 31, 2018 and 2017 the Company had $20.6 million and $48.5 million, respectively, of residential condominiums available for sale in its operating properties portfolio.

Schedule of real estate available and held for sale

The following table presents the carrying value of properties transferred to held for sale, by segment ($ in millions)⁽¹⁾:

	Year Ended December 31,
Property Type	2018		2017		2016
Operating Properties	$	23.2	$	20.1	$	16.1
Net Lease	8.1		0.9		1.8
Total	$	31.3	$	21.0	$	17.9

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(1) Properties were transferred to held for sale due to executed contracts with third parties or changes in business strategy.

Schedule of income (loss) from discontinued operations

The transactions described above involving the Company's Ground Lease business qualified for discontinued operations and the following table summarizes income from discontinued operations for the years ended December 31, 2017 and 2016 ($ in thousands)⁽¹⁾:

	Year Ended December 31,
	2017			2016
Revenues	$	5,922		$	21,839
Expenses	(1,491		)	(3,569		)
Income from sales of real estate	508			—
Income from discontinued operations	$	4,939		$	18,270

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(1) The transactions closed on April 14, 2017. Revenues primarily consisted of operating lease income and expenses primarily consisted of depreciation and amortization and real estate expense.

The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the years ended December 31, 2017 and 2016 ($ in thousands).

	Year Ended December 31,
	2017			2016
Cash flows provided by operating activities	$	5,702		$	16,662
Cash flows used in investing activities	(534		)	(7,972		)

Schedule of proceeds from other dispositions

The following table presents the proceeds and income recognized for properties sold, by property type ($ in millions):

	Year Ended December 31,
	2018		2017		2016
Operating Properties(1)
Proceeds	$	327.9	$	41.3	$	326.9
Income from sales of real estate	81.0		4.5		75.4
Net Lease(2)(3)
Proceeds	$	79.7	$	175.4	$	117.2
Income from sales of real estate	45.0		87.5		21.1
Total
Proceeds	$	407.6	$	216.7	$	444.1
Income from sales of real estate	126.0		92.0		96.5

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(1) During the year ended December 31, 2018, the Company sold 10 commercial operating properties and residential condominium units from other properties and recognized $81.0 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations, of which $9.8 million was attributable to a noncontrolling interest at one of the properties.

(2) During the year ended December 31, 2018, the Company sold five net lease assets and recognized $45.0 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations.

(3) During the year ended December 31, 2017, the Company sold one net lease property and recognized a gain on sale of $62.5 million. Prior to the sale, the Company acquired the noncontrolling interest with a carrying value of $3.5 million for $12.0 million.

Schedule of future minimum rental payments for operating leases

Future minimum operating lease payments to be collected under non-cancelable leases, excluding customer reimbursements of expenses, in effect as of December 31, 2018, are as follows ($ in thousands):

Year	Net Lease Assets		Operating Properties
2019	$	156,968	$	22,400
2020	157,476		21,146
2021	158,453		19,953
2022	160,395		11,358
2023	154,105		10,417

Future minimum lease obligations under non-cancelable operating leases are as follows ($ in thousands):

2019	$	4,340
2020	4,016
2021	1,589
2022	991
2023	849
Thereafter	2,469