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REAL ESTATE AND ACQUIRED IN PLACE LEASE VALUE
 12 Months Ended
Dec. 31, 2019
Real Estate [Abstract]  
REAL ESTATE AND ACQUIRED IN PLACE LEASE VALUE REAL ESTATE AND ACQUIRED IN PLACE LEASE VALUE
The following table summarizes the Company's investment in consolidated real estate properties at December 31, 2019 and 2018:
 
 
December 31,
(Dollars in millions)
 
2019
 
2018
Land
 
$
1,330.6

 
$
1,371.3

Buildings
 
3,630.4

 
3,958.4

Building improvements
 
469.5

 
652.0

Acquired in-place lease values
 
352.9

 
344.4


 
5,783.4

 
6,326.1

Less accumulated depreciation and amortization
 
(703.2
)
 
(623.6
)
Real estate and acquired in place lease values, net of accumulated depreciation and amortization
 
$
5,080.2

 
$
5,702.5


Real property, including land, buildings, and building improvements, are included in real estate and are generally stated at cost.  Buildings and building improvements are depreciated on the straight-line method over their estimated lives not to exceed 40 years. Acquired in-place lease values are recorded at their estimated fair value and depreciated over their respective weighted-average lease term which was 7.1 years at December 31, 2019.
Depreciation and amortization expense on buildings, building improvements and acquired in-place lease values for the years ended December 31, 2019, 2018 and 2017 was $173.4 million, $190.3 million and $198.9 million, respectively.

Consolidated Acquisitions
The purchase of property is recorded to land, buildings, building improvements, and intangible lease value (including the value of above-market and below-market leases, acquired in-place lease values, and tenant relationships, if any) based on their respective estimated relative fair values. The purchase price generally approximates the fair value of the properties as acquisitions are generally transacted with third-party willing sellers.
During the year ended December 31, 2019, Kennedy Wilson acquired the following consolidated properties:
(Dollars in millions)
Purchase Price Allocation at Acquisition(1)
Location
Description
Land
Building
Acquired in-place lease values(2)
Investment debt
KWH Shareholders' Equity
Western U.S.
One multifamily property and one commercial property
$
39.9

$
123.0

$
37.2

$
112.2

$
87.9

United Kingdom
One commercial property and one industrial property
29.0

39.2

2.9

58.6

12.5

Ireland
One commercial property
7.2

31.7

3.4

44.0

(1.7
)
 
 
$
76.1

$
193.9

$
43.5

$
214.8

$
98.7

(1) Excludes net other assets.
(2) Above- and below-market leases are included in other assets, net and accrued expenses and other liabilities.

During the year ended December 31, 2018, Kennedy Wilson acquired the following consolidated properties:
(Dollars in millions)
Purchase Price Allocation at Acquisition(1)
Location
Description
Land
Building
Acquired in-place lease values(2)
Investment debt
KWH Shareholders' Equity
Western U.S.
Five multifamily properties, three land development and one commercial property
$
72.1

$
167.5

$
1.2

$
145.8

$
95.0

United Kingdom
One residential property
4.2

—

—

—

4.2

Ireland
One multifamily
11.1

96.0

2.1

61.3

47.9

 
 
$
87.4

$
263.5

$
3.3

$
207.1

$
147.1

(1) Excludes net other assets.
(2) Above- and below-market leases are included in other assets, net and accrued expenses and other liabilities.
Gains on Real Estate
During the years ended December 31, 2019, 2018 and 2017, Kennedy Wilson recognized the following net gains on sale of real estate. Included in the net gains for December 31, 2018 is an impairment loss on a vacated office building in the United Kingdom which was subsequently sold.
(Dollars in millions)
Gain on sale of real estate
Year ended December 31,
Description
Consolidated(1)
NCI
Net of NCI
2019
11 commercial properties and one hotel in the United Kingdom, one hotel in Ireland, 10 Spanish retail properties, five retail properties, one hotel, and one multifamily property in the Western United States, and the deconsolidation of previously consolidated real estate as discussed below
$
434.9

$
116.7

$
318.2

2018
26 commercial properties in United Kingdom, three commercial properties in Ireland, two commercials properties in Italy, six multifamily properties in Ireland, three multifamily properties in Western United States, and one residential property in Ireland, and one residential property in Western United States
369.6

70.6

299.0

2017
Three multifamily properties and one retail center in the Western U.S., one commercial development and three commercial properties in Ireland, one residential property in the United Kingdom, 25 commercial properties across the United Kingdom and Ireland, two condo unit sales in Spain and a residential property in Spain
258.0

43.3

214.7

(1) Includes sale of real estate and cost of real estate sold, which are presented net in the table above.

Deconsolidation of previously consolidated real estate
AXA Investment Managers - Real Assets ("AXA") and the Company established a joint venture platform ("AXA Joint Venture") during 2018 targeting multifamily and office assets in Ireland. As of December 31, 2019, the AXA Joint Venture consists of 2,270 multifamily units and 391,000 square feet of office space across 12 assets in Dublin, Ireland. These assets were previously wholly owned by the Company or were held with a different equity partner (held in 50/50 joint ventures) that were previously consolidated in the Company’s financial statements.
As the Company does not control the AXA Joint Venture, the assets are no longer consolidated and its investment with AXA is accounted for under the equity method. The Company has elected the fair value option on its interest in the joint venture and records the investment at fair value. The Company continues to hold a 50% ownership interest in the assets discussed above through its ownership in the AXA Joint Venture.
There are two assets in the AXA Joint Venture in which the Company has an 80% ownership interest as of December 31, 2019. The Company sold a 20% interest in these assets in December 2019 and as a result, the Company no longer controlled these assets due to substantive participating rights held by AXA. Accordingly, subsequent to the sale, these investments are accounted for under the equity method and the Company has elected the fair value option on its 80% ownership interest in these assets. In January 2020, the Company sold an additional 30% ownership interest in these two assets and currently holds all assets within the AXA Joint Venture at 50% ownership interest. The sale of the additional 30% will be treated as a distribution and a reduction in our basis in these unconsolidated investments with no gain or loss recognized as these assets were already deconsolidated.
Under ASC Subtopic 610-20, due to the deconsolidation of the assets discussed above, the Company recognized a gain of $317.8 million through gain on sale of real estate, net, of which the Company's share, net of noncontrolling interest, was $212.4 million for the year ended December 31, 2019. During the year ended December 31, 2018 the Company recognized a gain of $169.5 million through gain on sale of real estate, net, of which the Company's share, net of noncontrolling interest, was $102.7 million. Additionally, as such investments have been sold, the related accumulated other comprehensive income associated with foreign currency translation adjustments and hedged derivative instruments have been recognized in the consolidated statements of income.
Leases
The Company leases its operating properties to customers under agreements that are classified as operating leases. The total minimum lease payments provided for under the leases are recognized on a straight-line basis over the lease term. The majority of the Company's rental expenses, including common area maintenance, real estate taxes and insurance, are recovered from the Company's tenants. The Company records amounts reimbursed by customers in the period that the applicable expenses are incurred, which is generally ratably throughout the term of the lease. The reimbursements are recognized in rental income in the consolidated statements of operations as the Company is the primary obligor with respect to purchasing and selecting goods and services from third-party vendors and bearing the associated credit risk.
The following table summarizes the minimum lease payments due from the Company's tenants on leases with lease periods greater than one year at December 31, 2019:
(Dollars in millions)
Minimum
 
Rental Revenues(1)
2020
223.0

2021
222.1

2022
205.7

2023
169.2

2024
139.7

Thereafter
672.9

Total
$
1,632.6

(1) These amounts do not reflect future rental revenues from the renewal or replacement of existing leases, rental increases that are not fixed and exclude reimbursements of rental expenses.