Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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 (ten 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			2013
REI:
Rental income	$	244,445		$	40,987
Direct financing lease income	1,006			—
Operating expense reimbursements	21,096			1,910
Total real estate investment revenues	266,547			42,897
Acquisition related	11,884			10,327
Merger and other transaction related	222,192			137,769
Property operating expenses	29,627			2,549
General and administrative expenses	7,750			1,454
Equity based compensation	22,510			881
Depreciation and amortization	151,004			26,753
Total operating expenses	444,967			179,733
Operating loss	(178,420		)	(136,836		)
Interest expense, net	(116,717		)	(6,056		)
Other income, net	322			853
Loss on derivative instruments, net	(20,197		)	(5		)
Gain on disposition of properties, net	2,979			—
Gain on sale of investments	—			451
Total other expenses, net	(133,613		)	(4,757		)
Net loss from continuing operations	(312,033		)	(141,593		)
Discontinued operations:
Loss from operations of held for sale properties	—			(16		)
Gain on held for sale properties	—			14
Net loss from discontinued operations	—			(2		)
Net loss	$	(312,033	)	$	(141,595	)

	Three Months Ended March 31,
	2014			2013
Cole Capital:
Dealer manager and distribution fees, selling commissions and offering reimbursements	$	42,453		$	—
Transaction service fees	4,559			—
Management fees and reimbursements	7,055			—
Total Cole Capital revenues	54,067			—
Cole Capital reallowed fees and commissions	34,436			—
General and administrative expenses	19,089			—
Depreciation and amortization	14,359			—
Total operating expenses	67,884			—
Total other income	5,195			—
Net loss	$	(8,622	)	$	—
Total Company:
Total revenues	$	320,614		$	42,897
Total operating expenses	512,851			179,733
Total other expense	(128,418		)	(4,757		)
Loss from continuing operations	(320,655		)	(141,593		)
Loss from discontinued operations	—			(2		)
Net loss	$	(320,655	)	$	(141,595	)

	Total Assets
	March 31, 2014		December 31, 2013
Real Estate Investment	$	19,480,029	$	7,805,059
Cole Capital	1,000,271		—
Total Company	$	20,480,300	$	7,805,059