Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

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

REI – Through its REI segment, the Company acquires, owns and operates primarily single-tenant, freestanding commercial real estate properties primarily subject to net leases with high credit quality tenants. As of December 31, 2014, the Company owned 4,648 properties comprising 103.1 million square feet of single- and multi-tenant retail and commercial space located in 49 states, the District of Columbia, Puerto Rico, and Canada, which include properties owned through consolidated joint ventures. The rentable space at these properties was 99.3% leased with a weighted average remaining lease term of 11.8 years. In addition, as of December 31, 2014, the Company owned 10 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 U.S. Securities and Exchange Commission (the “SEC”), the Financial Industry Regulatory Authority, Inc. (“FINRA”) and various blue sky 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 operating segments. The following tables present a summary of the comparative financial results and total assets for each business segment (in thousands):

	Year Ended December 31,
	2014			2013			2012
REI:
Revenues:
Rental income	$	1,271,574		$	310,508		$	65,262
Direct financing lease income	3,603			2,244			—
Operating expense reimbursements	100,522			16,571			1,945
Total real estate investment revenues	1,375,699			329,323			67,207
Operating expenses:
Acquisition related	35,469			76,113			45,070
Merger and other non-routine transactions	198,545			210,543			2,603
Property operating	137,741			23,616			3,522
Management fees to affiliates	13,888			17,462			212
General and administrative	83,574			123,172			5,458
Depreciation and amortization	844,743			210,976			40,957
Impairment of real estate	100,547			3,346			—
Total operating expenses	1,414,507			665,228			97,822
Operating loss	(38,808		)	(335,905		)	(30,615		)

	Year Ended December 31,
	2014			2013			2012
Other (expense) income:
Interest expense, net	$	(452,648	)	$	(105,548	)	$	(11,856	)
Extinguishment of debt, net	(21,869		)	—			—
Other income, net	80,636			3,824			979
Loss on derivative instruments, net	(10,570		)	(67,946		)	—
Loss on held for sale assets and disposition of properties, net	(277,031		)	—			—
Loss on sale of investments in affiliates	—			(411		)	—
Gain (loss) on sale of investments	6,357			(1,795		)	—
Total other expenses, net	(675,125		)	(171,876		)	(10,877		)
Net loss from continuing operations	(713,933		)	(507,781		)	(41,492		)
Discontinued operations:
Loss from operations of held for sale assets	—			(34		)	(145		)
Loss on held for sale properties	—			—			(600		)
Net loss from discontinued operations	—			(34		)	(745		)
Net loss	$	(713,933	)	$	(507,815	)	$	(42,237	)
Cole Capital:
Revenues:
Dealer manager and distribution fees, selling commissions and offering reimbursements	$	87,109		$	—		$	—
Transaction service fees	60,672			—			—
Management fees and reimbursements	55,777			—			—
Total Cole Capital revenues	203,558			—			—
Operating expenses:
Cole Capital reallowed fees and commissions	66,228			—			—
Acquisition related	3,362			—			—
Merger and other non-routine transactions	1,969			—			—
General and administrative expenses	91,167			—			—
Depreciation and amortization	71,260			—			—
Impairments of intangible assets	309,444			—			—
Total operating expenses	543,430			—			—
Total other income	42,893			—			—
Net loss	$	(296,979	)	$	—		$	—
Total Company:
Total revenues	$	1,579,257		$	329,323		$	67,207
Total operating expenses	$	1,957,937		$	665,228		$	97,822
Total other expense	$	(632,232	)	$	(171,876	)	$	(10,877	)
Loss from continuing operations	$	(1,010,912	)	$	(507,781	)	$	(41,492	)
Loss from discontinued operations	$	—		$	(34	)	$	(745	)
Net loss	$	(1,010,912	)	$	(507,815	)	$	(42,237	)

	Total Assets
	December 31, 2014		December 31, 2013
REI	$	19,821,440	$	7,809,083
Cole Capital	693,699		—
Total Company	$	20,515,139	$	7,809,083