Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2015

Real Estate [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the allocation of the fair values of the assets acquired and liabilities assumed during the periods presented (in thousands):

	Year Ended December 31,
	2015			2014			2013
Real estate investments, at cost:
Land	$	5,051		$	808,930		$	883,491
Buildings, fixtures and improvements	26,503			2,494,379			2,311,211
Land and construction in progress	2,140			11,030			—
Total tangible assets	33,694			3,314,339			3,194,702
Acquired intangible assets:
In-place leases	2,580			545,389			334,839
Above-market leases	153			112,484			12,317
Assumed intangible liabilities:
Below-market leases	(108		)	(107,185		)	(21,446		)
Fair value adjustment of assumed notes payable	—			(23,589		)	—
Total purchase price of assets acquired	36,319			3,841,438			3,520,412
Mortgage notes payable assumed	—			(301,532		)	—
Cash paid for acquired real estate investments	$	36,319		$	3,539,906		$	3,520,412

Summary of Pro Forma Business Acquisition Information

Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $76.1 million and $45.1 million for the years ended December 31, 2013 and 2012, respectively, and merger and other transaction related expenses of $278.3 million and $2.6 million for the years ended December 31, 2013 and 2012, respectively (amounts in thousands).

	Year Ended December 31,
	2013			2012
	(Unaudited)			(Unaudited)
Pro forma revenues	$	574,058		$	467,434
Pro forma net (loss) attributable to stockholders	$	(75,132	)	$	(15,708	)

Data below is presented in thousands.

	Year Ended December 31,
	2014			2013
	(Unaudited)			(Unaudited)
Pro forma revenues	$	1,853,014		$	1,585,511
Pro forma net (loss) attributable to stockholders	$	(606,549	)	$	(478,093	)

Schedule of Future Minimum Operating Lease Base Rent Payments

These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (in thousands):

	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments (1)
2016	$	1,281,206	$	4,505
2017	1,254,404		4,105
2018	1,220,730		3,071
2019	1,180,046		2,397
2020	1,140,336		2,023
Thereafter	8,545,006		5,892
Total	$	14,621,728	$	21,993

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(1) 37 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the minimum base rental cash payments due to the Company under the lease agreements on these respective properties.

The following table reflects the minimum base rent payments due from the Company over the next five years and thereafter for certain ground lease obligations, which are substantially reimbursable by our tenants, and office lease obligations (in thousands):

	Future Minimum Base Rent Payments
	Ground Leases		Office Leases
2016	$	18,518	$	5,112
2017	17,947		4,585
2018	15,785		4,703
2019	15,383		4,769
2020	14,694		4,805
Thereafter	236,523		14,089
Total	$	318,850	$	38,063

Schedule of Future Minimum Direct Financing Lease Payments

These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (in thousands):

	Future Minimum Operating Lease Base Rent Payments		Future Minimum Direct Financing Lease Payments (1)
2016	$	1,281,206	$	4,505
2017	1,254,404		4,105
2018	1,220,730		3,071
2019	1,180,046		2,397
2020	1,140,336		2,023
Thereafter	8,545,006		5,892
Total	$	14,621,728	$	21,993

____________________________________

(1) 37 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the minimum base rental cash payments due to the Company under the lease agreements on these respective properties.

Schedule of Capital Leased Assets

The components of the Company’s net investment in direct financing leases as of December 31, 2015 and 2014 are as follows (in thousands):

	December 31, 2015			December 31, 2014
Future minimum lease payments receivable	$	21,993		$	27,199
Unguaranteed residual value of property	31,562			39,852
Unearned income	(7,243		)	(10,975		)
Net investment in direct financing leases	$	46,312		$	56,076

Schedule of Future Construction Commitments

Below is a summary of the construction commitments as of December 31, 2015 (dollar amounts in thousands):

Development projects in progress	10
Investment to date	$	17,185
Estimated cost to complete (1)	3,660
Total Investment (2)	$	20,845

_______________________________________________

(1) The Company is contractually committed to fund a developer $1.9 million to complete the remaining six build-to-suit developments.

(2) Excludes tenant improvement costs incurred in accordance with existing leases. As of December 31, 2015, $2.8 million of tenant improvement costs were included in land and construction in progress in the consolidated financial statements.

Summary of Operating Income from Continuing Operations of Multi-Tenant Portfolio

The following table summarizes the operating income from continued operations of the Multi-Tenant Portfolio for the year ended December 31, 2014 and 2013 (in thousands):

	Year Ended December 31,
	2014			2013
Total revenue	$	122,522		$	—
Total expenses	(123,776		)	—
Loss from Multi-Tenant Portfolio	$	(1,254	)	$	—

Summary of Unconsolidated Joint Ventures

The following is a summary of the Company’s percentage ownership and carrying amount related to each of the Unconsolidated Joint Ventures as of December 31, 2015 (dollar amounts in thousands):

Name of Joint Venture	Partner	Ownership % (1)	Carrying Amount of Investment (2)
Cole/Mosaic JV South Elgin IL, LLC	Affiliate of Mosaic Properties and Development, LLC	50%	$	6,591
Cole/LBA JV OF Pleasanton CA, LLC	Affiliate of LBA Realty	90%	32,947
Cole/Faison JV Bethlehem GA, LLC	Faison-Winder Investors, LLC	90%	13,222
			$	52,760

_______________________________________________

(1) The Company’s ownership interest in this table reflects its legal ownership interest. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests.

(2) The total carrying amount of the investments is greater than the underlying equity in net assets by $10.0 million. This difference relates to a purchase price allocation of goodwill and a step up in fair value of the investment assets acquired in connection with the Cole Merger. The step up in fair value was allocated to the individual investment assets and is being amortized in accordance with the Company’s depreciation policy.