Fair Value Measures (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Impairment Charges by Asset Class

The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2015 and 2014 (dollar amounts in thousands):



	Six Months Ended June 30,
	2015			2014
Properties impaired	188			4

Asset classes impaired:
Investment in real estate assets, net	$	82,654		$	1,556
Investment in direct financing leases, net	3,417			—
Below-market lease liabilities, net	(730		)	—
Total impairment loss	$	85,341		$	1,556

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands):



	Level 1		Level 2			Level 3		Balance as of June 30, 2015
Assets:
CMBS	$	—	$	—		$	55,802	$	55,802
Interest rate swap assets	—		2,093			—		2,093
Total assets	$	—	$	2,093		$	55,802	$	57,895
Liabilities:
Interest rate swap liabilities	$	—	$	(9,409	)	$	—	$	(9,409	)

	Level 1		Level 2			Level 3		Balance as of December 31, 2014
Assets:
CMBS	$	—	$	—		$	58,646	$	58,646
Interest rate swap assets	—		5,509			—		5,509
Total assets	$	—	$	5,509		$	58,646	$	64,155
Liabilities:
Interest rate swap liabilities	$	—	$	(7,384	)	$	—	$	(7,384	)

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following are reconciliations of the changes in assets and (liabilities) with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2015 and 2014 (in thousands):



	CMBS
Beginning Balance, December 31, 2014	$	58,646
Total gains and losses:
Unrealized gain included in other comprehensive income, net	686
Purchases, issuances, settlements and amortization:
Principal payments received	(3,596		)
Amortization included in net loss	66
Ending balance, June 30, 2015	$	55,802



	CMBS			Series D Preferred Stock Embedded Derivative			Contingent Consideration Arrangements			Total
Balance, December 31, 2013	$	60,583		$	(16,736	)	$	—		$	43,847
Total gains and losses:
Unrealized gain included in other comprehensive income, net	8,598			—			—			8,598
Changes in fair value included in net loss	—			5,216			(1,212		)	4,004
Purchases, issuances, settlements and amortization:
Fair value at purchase/issuance	151,197			—			(3,606		)	147,591
Amortization included in net loss	(3,065		)	—			—			(3,065		)
Ending balance, June 30, 2014	$	217,313		$	(11,520	)	$	(4,818	)	$	200,975

Fair Value, by Balance Sheet Grouping

The fair values of the Company’s financial instruments that are not reported at fair value in the consolidated balance sheets are reported below (dollar amounts in thousands):



	Level	Carrying Amount at June 30, 2015		Fair Value at June 30, 2015		Carrying Amount at December 31, 2014		Fair Value at December 31, 2014
Assets:
Loans held for investment	3	$	40,598	$	44,249	$	42,106	$	42,645

Liabilities:
Mortgage notes payable and other debt, net ⁽¹⁾	3	$	3,618,637	$	3,558,050	$	3,805,761	$	3,931,029
Corporate bonds, net	3	2,546,864		2,455,768		2,546,499		2,709,845
Convertible debt, net	3	979,852		946,219		977,521		1,088,069
Credit facilities	3	2,300,000		2,308,088		3,184,000		3,145,884
Total liabilities		$	9,445,353	$	9,268,125	$	10,513,781	$	10,874,827