Debt Obligations, net (Tables)

12 Months Ended

Dec. 31, 2019

The Company's debt obligations were as follows ($ in thousands):



	Carrying Value as of December 31,						Stated Interest Rates		Scheduled Maturity Date
	2019			2018			Stated Interest Rates		Scheduled Maturity Date
Secured credit facilities and mortgages:
2015 $350 Million Revolving Credit Facility	$	—		$	—		LIBOR + 2.25%	⁽¹⁾	September 2022
Senior Term Loan	491,875			646,750			LIBOR + 2.75%	⁽²⁾	June 2023
Mortgages collateralized by net lease assets⁽³⁾	721,118			802,367			3.31% - 7.26%	⁽³⁾
Total secured credit facilities and mortgages	1,212,993			1,449,117
Unsecured notes:
5.00% senior notes⁽⁴⁾	—			375,000			5.00%		—
4.625% senior notes⁽⁵⁾	—			400,000			4.625%		—
6.50% senior notes⁽⁶⁾	—			275,000			6.50%		—
6.00% senior notes⁽⁷⁾	110,545			375,000			6.00%		April 2022
5.25% senior notes⁽⁸⁾	400,000			400,000			5.25%		September 2022
3.125% senior convertible notes⁽⁹⁾	287,500			287,500			3.125%		September 2022
4.75% senior notes⁽¹⁰⁾	775,000			—			4.75%		October 2024
4.25% senior notes⁽¹¹⁾	550,000			—			4.25%		August 2025
Total unsecured notes	2,123,045			2,112,500
Other debt obligations:
Trust preferred securities	100,000			100,000			LIBOR + 1.50%		October 2035
Total debt obligations	3,436,038			3,661,617
Debt discounts and deferred financing costs, net	(48,958		)	(52,531		)
Total debt obligations, net ⁽¹²⁾	$	3,387,080		$	3,609,086

_______________________________________________________________________________

(1)

The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.00% and subject to a margin ranging from 1.00% to 1.50%; or (ii) LIBOR subject to a margin ranging from 2.00% to 2.50%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2023.


(2)	The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.50% or (c) LIBOR plus 1.00% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%.


(3)	In June 2019, the buyer of a portfolio of net lease assets assumed a $228.0 million non-recourse mortgage (refer to Note 4). As of December 31, 2019, the weighted average interest rate of these loans is 4.37% inclusive of the effect of interest rate swaps.


(4)	The Company prepaid these senior notes in March 2019 without penalty.


(5)	The Company prepaid these senior notes in October 2019 with a $6.0 million prepayment penalty.


(6)	The Company prepaid these senior notes in October 2019 with a $4.5 million prepayment penalty.


(7)	The Company partially prepaid these senior notes in December 2019 with a $10.1 million prepayment premium. The Company repaid the remaining senior notes in January 2020.


(8)	The Company can prepay these senior notes without penalty beginning September 15, 2021.

(9)

The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of December 31, 2019 was 67.92 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $14.72 per share. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. As such, at issuance in September 2017, the Company valued the liability component at $221.8 million, net of fees, and the equity component of the conversion feature at $22.5 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the liability component at $34.0 million, net of fees, and the equity component of the conversion feature at $3.4 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of December 31, 2019, the carrying value of the 3.125% Convertible Notes was $268.7 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $15.5 million, net of fees. As of December 31, 2018, the carrying value of the 3.125% Convertible Notes was $262.6 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $20.5 million, net of fees. During the years ended December 31, 2019, 2018 and 2017, the Company recognized $9.0 million, $9.0 million and $2.5 million, respectively, of contractual interest and $5.0 million, $4.7 million and $1.3 million, respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate for 2019, 2018 and 2017 was 5.2%.


(10)	The Company can prepay these senior notes without penalty beginning July 1, 2024.


(11)	The Company can prepay these senior notes without penalty beginning May 1, 2025.

(12)

The Company capitalized interest relating to development activities of $7.5 million, $11.3 million and $8.5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Schedule of future scheduled maturities of outstanding long-term debt obligations, net

As of December 31, 2019, future scheduled maturities of outstanding debt obligations are as follows ($ in thousands):



	Unsecured Debt			Secured Debt			Total
2020	$	—		$	—		$	—
2021	—			159,083			159,083
2022	798,045			47,901			845,946
2023	—			491,875			491,875
2024	775,000			—			775,000
Thereafter	650,000			514,134			1,164,134
Total principal maturities	2,223,045			1,212,993			3,436,038
Unamortized discounts and deferred financing costs, net	(41,228		)	(7,730		)	(48,958		)
Total debt obligations, net	$	2,181,817		$	1,205,263		$	3,387,080

Schedule of carrying value of encumbered assets by asset type

The carrying value of the Company's assets that are directly pledged or are held by subsidiaries whose equity is pledged as collateral to secure the Company's obligations under its secured debt facilities are as follows, by asset type ($ in thousands):



	As of December 31,
	2019				2018
	Collateral Assets⁽¹⁾		Non-Collateral Assets		Collateral Assets⁽¹⁾		Non-Collateral Assets
Real estate, net	$	1,409,585	$	117,634	$	1,620,008	$	151,011
Real estate available and held for sale	—		8,650		1,055		21,496
Net investment in leases	418,915		—		—		—
Land and development, net	—		580,545		12,300		585,918
Loans receivable and other lending investments, net⁽²⁾⁽³⁾	233,104		566,050		498,524		480,154
Other investments	—		907,875		—		304,275
Cash and other assets	—		814,044		—		1,329,990
Total	$	2,061,604	$	2,994,798	$	2,131,887	$	2,872,844

_______________________________________________________________________________

(1)

The Senior Term Loan and the Revolving Credit Facility are secured only by pledges of equity of certain of the Company's subsidiaries and not by pledges of the assets held by such subsidiaries. Such subsidiaries are subject to contractual restrictions under the terms of such credit facilities, including restrictions on incurring new debt (subject to certain exceptions). As of December 31, 2019, Collateral Assets includes $438.7 million carrying value of assets held by entities whose equity interests are pledged as collateral for the Revolving Credit Facility that is undrawn as of December 31, 2019.


(2)	As of December 31, 2019 and 2018, the amounts presented exclude general reserves for loan losses of $6.9 million and $13.0 million, respectively.

(3)

As of December 31, 2019 and 2018, the amounts presented exclude loan participations of $35.6 million and $22.5 million, respectively.