Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has two reportable segments as it has organized its operations into two segments for management and internal financial reporting purposes, REI and Cole Capital, as further discussed below.

REI – Through its REI segment, the Company owns and actively manages a diversified portfolio of retail, restaurant, office and industrial real estate properties subject to long-term net leases with creditworthy tenants. As of March 31, 2016, the Company owned 4,378 properties comprising 99.0 million square feet of retail and commercial space located in 49 states, the District of Columbia, Puerto Rico and Canada, which includes properties owned through consolidated joint ventures. The rentable space at these properties was 98.6% leased with a weighted-average remaining lease term of 10.4 years. In addition, as of March 31, 2016, the Company owned nine CMBS and nine mortgage notes receivable.

Cole Capital – Through its Cole Capital segment, the Company is responsible for managing the day-to-day affairs of Cole Credit Property Trust IV, Inc. (“CCPT IV”); Cole Real Estate Income Strategy (Daily NAV), Inc. (“INAV”); Cole Office & Industrial REIT (CCIT II), Inc. (“CCIT II”); Cole Credit Property Trust V, Inc. (“CCPT V”); and other real estate offerings in registration (collectively with CCPT IV, INAV and CCIT II, the “Cole REITs”), raising capital for those Cole REITs still in offering, identifying and making acquisitions and investments on the Cole REITs’ behalf and recommending to the respective board of directors of each of the Cole REITs an approach for providing investors with liquidity. Cole Capital serves as the dealer manager and distributes shares of common stock for certain Cole 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 Cole REITs’ offerings and the investment, management, financing and disposition of their respective assets, as applicable. Cole Capital also develops new REIT offerings and assists in obtaining regulatory approvals from the SEC, the Financial Industry Regulatory Authority, Inc. and various blue sky jurisdictions for such offerings. See Note 17 –Related Party Transactions and Arrangements for further discussion on the Cole REITs.

The Company allocates certain operating expenses, such as legal 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 segment (in thousands):

	Three Months Ended March 31,
	2016			2015
REI segment:
Revenues:
Rental income	$	313,971		$	342,759
Direct financing lease income	569			741
Operating expense reimbursements	23,247			22,974
Total real estate investment revenues	337,787			366,474
Operating expenses:
Acquisition related	217			1,723
Litigation and other non-routine costs, net of insurance recoveries	(5,175		)	16,423
Property operating	34,813			30,999
General and administrative	12,228			15,370
Depreciation and amortization	195,991			210,788
Impairment of real estate	160,517			—
Total operating expenses	398,591			275,303
Operating (loss) income	$	(60,804	)	$	91,171
Other (expense) income:
Interest expense	$	(80,426	)	$	(95,699	)
Gain on extinguishment and forgiveness of debt, net	—			5,302
Other income, net	568			2,841
Equity in income and gain on disposition of unconsolidated entities	10,404			28
Loss on derivative instruments, net	(1,086		)	(1,028		)
Total other expenses, net	(70,540		)	(88,556		)
(Loss) income before taxes and real estate dispositions	(131,344		)	2,615
Gain (loss) on disposition of real estate, net	17,175			(31,368		)
Loss before taxes	(114,169		)	(28,753		)
Provision for income taxes	(1,365		)	(1,854		)
Net loss	$	(115,534	)	$	(30,607	)

	Three Months Ended March 31,
	2016			2015
Cole Capital segment:
Revenues:
Offering-related fees and reimbursements	$	12,391		$	3,117
Transaction service fees and reimbursements	2,384			10,260
Management fees and reimbursements	16,458			14,117
Total Cole Capital revenues	31,233			27,494
Operating expenses:
Cole Capital reallowed fees and commissions	8,068			2,031
Acquisition related	25			459
General and administrative	17,172			17,736
Depreciation and amortization	8,317			8,353
Total operating expenses	33,582			28,579
Operating loss	(2,349		)	(1,085		)
Total other income, net	494			1,219
(Loss) income before taxes	(1,855		)	134
Benefit from (provision for) income taxes	1,309			(220		)
Net loss	$	(546	)	$	(86	)
Total Company:
Total revenues	$	369,020		$	393,968
Total operating expenses	$	432,173		$	303,882
Total other expense, net	$	(70,046	)	$	(87,337	)
Net loss	$	(116,080	)	$	(30,693	)

	Total Assets
	March 31, 2016		December 31, 2015
REI segment	$	16,465,057	$	16,966,729
Cole Capital segment	378,555		439,137
Total Company	$	16,843,612	$	17,405,866