Segment Reporting (As Restated)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Reporting (As Restated)

Note 6 — Segment Reporting (As Restated)

The Company operates under two segments, REI and Cole Capital.

REI – Through its REI segment, the Company acquires, owns and operates a diverse portfolio of core commercial real estate investments primarily consisting of single-tenant, freestanding commercial real estate properties. The Company focuses on investing in properties that are net leased to credit tenants, which are generally large public companies with investment-grade ratings and other creditworthy tenants. The Company’s long-term business strategy is to acquire a diverse portfolio consisting of approximately 70.0% long-term leases and 30.0% medium-term, with an average portfolio remaining primary lease term of approximately 10 to 12 years. The Company considers properties that are leased on a “medium-term” basis to mean properties originally leased long-term (10 years or longer) that currently have a primary remaining lease duration of generally three to eight years, on average. The Company expects this investment strategy to provide for stable income from credit tenants and to provide for growth opportunities from re-leasing of current below market leases. As of March 31, 2014, the Company owned 3,809 properties comprising 101.8 million square feet of single and multi-tenant retail and commercial space located in 49 states, which include properties owned through consolidated joint ventures. As of March 31, 2014, the rentable space at these properties was 98.9% leased with a weighted average remaining lease term of 10.2 years. As of March 31, 2014, the Company also owned 25 commercial mortgage-backed securities (“CMBS”), 14 loans held for investment and, through the Unconsolidated Joint Ventures, had interests in six properties comprising 1.6 million rentable square feet of commercial and retail space.

Cole Capital – Cole Capital is contractually responsible for managing the Managed REITs’ affairs on a day-to-day basis, identifying and making acquisitions and investments on the Managed REITs’ behalf, and recommending to each of the Managed REIT’s respective board of directors an approach for providing investors with liquidity. Cole Capital serves as the dealer manager and distributes shares of common stock for certain Managed REITs and advises them regarding offerings, manages relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to the offerings. Cole Capital receives compensation and reimbursement for services relating to the Managed REITs’ offerings and the investment, management, financing and disposition of their respective assets, as applicable. Cole Capital also develops new REIT offerings, including obtaining regulatory approvals from the SEC, the Financial Industry Regulatory Authority, Inc. (“FINRA”) and various jurisdictions for such offerings.

The Company allocates certain operating expenses, such as audit and legal fees, board of director fees, employee related costs and benefits and general overhead expenses between its two segments. The following tables present a summary of the comparative financial results and total assets for each business segment (in thousands):

	Three Months Ended March 31,
	2014 (As Restated)			2013 (As Restated)
REI:
Rental income	$	244,415		$	40,987
Direct financing lease income		1,006			—
Operating expense reimbursements		21,476			1,910
Total real estate investment revenues		266,897			42,897
Acquisition related		13,417			10,327
Merger and other non-routine transactions		159,794			123,568
Property operating expenses		29,755			2,549
Management fees to affiliates		13,888			12,493
General and administrative expenses		35,661			7,772
Depreciation and amortization		159,483			26,753
Total operating expenses		411,998			183,462
Operating loss		(145,101	)		(140,565	)
Interest expense, net		(120,951	)		(6,801	)
Extinguishment of debt		(9,399	)		—
Other income, net		3,959			999
Loss on derivative instruments, net		(7,121	)		(5	)
Loss on disposition of properties, net		(17,605	)		—
Gain on sale of investments		—			451
Total other expenses, net		(151,117	)		(5,356	)
Net loss from continuing operations		(296,218	)		(145,921	)
Discontinued operations:
Loss from operations of held for sale properties		—			(16	)
Gain on held for sale properties		—			—
Net loss from discontinued operations		—			(16	)
Net loss	$	(296,218	)	$	(145,937	)
Cole Capital:
Dealer manager and distribution fees, selling commissions and offering reimbursements	$	42,453		$	—
Transaction service fees		4,559			—
Management fees and reimbursements		7,245			—
Total Cole Capital revenues		54,257			—
Cole Capital reallowed fees and commissions		34,436			—
Merger and other non-routine transactions		504			—
General and administrative expenses		20,831			—
Depreciation and amortization		14,359			—
Total operating expenses		70,130			—
Total other income		6,251			—
Net loss from continuing operations	$	(9,622	)	$	—
Total Company
Total revenues	$	321,154		$	42,897
Total operating expenses		482,128			183,462
Total other expense		(144,866	)		(5,356	)
Loss from continuing operations		(305,840	)		(145,921	)
Loss from discontinued operations		—			(16	)
Net loss	$	(305,840	)	$	(145,937	)
	Total Assets
	March 31, 2014			December 31, 2013
	(As Restated)			(As Restated)
Real Estate Investment	$	19,487,003		$	7,809,083
Cole Capital		1,001,092			—
Total Company	$	20,488,095		$	7,809,083