Related Party Transactions and Arrangements (Tables)

6 Months Ended

Jun. 30, 2016

The following table shows the offering fee summary information for the Cole REITs as of June 30, 2016:



Program	Selling Commissions ⁽¹⁾	Dealer Manager Fees ⁽²⁾		Distribution and Stockholder Servicing Fee ⁽²⁾
Open Programs
CCPT V
Class A Shares	7%	2%		—%
Class T Shares ⁽³⁾	3%	2%		0.8%	⁽⁴⁾

INAV ⁽⁵⁾
Wrap Class Shares	—%	0.55%	⁽⁴⁾	—%
Advisor Class Shares	up to 3.75%	0.55%	⁽⁴⁾	0.5%	⁽⁴⁾
Institutional Class Shares	—%	0.25%	⁽⁴⁾	—%

CCIT II
Class A Shares	7%	2%		—%
Class T Shares ⁽³⁾	3%	2%		0.8%	⁽⁴⁾

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(1)	The Company reallows 100% of selling commissions earned to participating broker-dealers.


(2)	The Company may reallow all or a portion of its dealer manager fee and/or a distribution and stockholder servicing fee to participating broker-dealers as a marketing and due diligence expense reimbursement.


(3)	Commencing on April 29, 2016, two of the Cole REITs, CCIT II and CCPT V, began offering Class T shares of common stock in addition to the class of shares of common stock already being offered (now referred to as Class A shares).


(4)	Fees are accrued daily in the amount of 1/365^th of a percentage of the estimated per share NAV and payable monthly in arrears.


(5)	In connection with the INAV offering, the Company receives selling commissions, an asset-based dealer manager fee and/or an asset-based distribution and stockholder servicing fee, all based on the net asset value for each class of common stock.

Transaction Related Fees [Member]

Schedule of Related Party Transactions

The following table shows the transaction-related fees for the Cole REITs and other real estate programs as of June 30, 2016:



Program	Acquisition Fees ⁽¹⁾	Disposition Fees	Performance Fees ⁽²⁾
Open Programs
CCPT V	2%	1%	15%
INAV	—	—	—
CCIT II	2%	1%	15%

Closed Programs
CCPT IV	2%	1%	15%
Other Programs	Various	Various	Various

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(1)	Percent taken on gross purchase price.

(2)

Performance fee paid only under the following circumstances: (i) if shares are listed on a national securities exchange; (ii) if the respective Cole REIT is sold or the assets are liquidated; or (iii) upon termination of the advisory agreement. In connection with such events, the performance fee will only be earned upon the return to investors of their net capital invested and an 8% annual cumulative, non-compounded return (6% in the case of CCPT V).

Management Service Revenue [Member]

Schedule of Related Party Transactions

The following table shows the management fees for the Cole REITs as of June 30, 2016:



Program	Asset Management / Advisory Fees ⁽¹⁾	Performance Fees ⁽²⁾
Open Programs
CCPT V	0.65% - 0.75%	—
INAV	0.90%	25%
CCIT II	0.65% - 0.75%	—

Closed Programs
CCPT IV	0.65% - 0.75%	—
Other Programs	Various	—

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(1)	Annualized fee based on the average monthly invested assets or net asset value, if available.


(2)	Performance fee paid on the amount in which the total return on stockholders’ capital exceeds 6% per annum on a calendar year basis.

Revenue from Managed REITs [Member]

Schedule of Related Party Transactions

The table below reflects the revenue earned from the Cole REITs (including closed programs, as applicable) and joint ventures for the three and six months ended June 30, 2016 and 2015 (in thousands).



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Offering-related fees and reimbursements
Securities commissions ⁽¹⁾	$	6,063	$	3,243	$	13,104	$	5,018
Dealer manager and distribution fees ⁽²⁾	2,415		1,168		5,055		1,884
Reimbursement revenue	2,436		1,105		5,146		1,731
Offering-related fees and reimbursements	10,914		5,516		23,305		8,633

Transaction service fees and reimbursements
Acquisition fees	3,758		4,192		5,460		8,680
Disposition fees ⁽³⁾	62		2,224		62		7,425
Reimbursement revenues	656		620		1,338		1,191
Transaction service fees and reimbursements	4,476		7,036		6,860		17,296

Management fees and reimbursements
Asset and property management fees and leasing fees	286		371		571		797
Advisory and performance fee revenue	12,560		10,503		24,610		21,676
Reimbursement revenues	4,250		3,103		8,373		5,621
Management fees and reimbursements	17,096		13,977		33,554		28,094

Interest income on Affiliate Lines of Credit	—		253		308		661

Total related party revenues⁽⁴⁾	$	32,486	$	26,782	$	64,027	$	54,684

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(1)	The Company reallows 100% of selling commissions earned to participating broker-dealers.

(2)

During the three and six months ended June 30, 2016, the Company reallowed $0.9 million and $1.9 million, respectively, of dealer manager fees and/or distribution and stockholder servicing fees to participating broker dealers as a marketing and due diligence expense reimbursement. During the three and six months ended June 30, 2015, the Company reallowed $0.5 million and $0.7 million, respectively, of such fees.


(3)	The Company earned a disposition fee of $4.4 million on behalf of CCIT when it merged with Select Income REIT on January 29, 2015.


(4)	Total related party revenues excludes fees earned from 1031 real estate programs of $0.2 million and $0.4 million for the three and six months ended June 30, 2016, respectively and fees earned from 1031 real estate programs of $2.4 million and $3.5 million for the three and six months ended June 30, 2015, respectively.

Investments In Managed REITs [Member]

Schedule of Related Party Transactions

The table below presents certain information related to the Company’s investments in the Cole REITs as of June 30, 2016 (carrying amount in thousands):



	June 30, 2016
Cole REIT	% of Outstanding Shares Owned	Carrying Amount of Investment
CCPT V	1.05%	$	1,496
INAV	0.10%	146
CCIT II	0.50%	1,347
CCPT IV	0.01%	117
Funds not yet in offering	N/A	600
		$	3,706