Related Party Transactions and Arrangements (Tables)

9 Months Ended

Sep. 30, 2016

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



Program	Selling Commissions ⁽¹⁾	Dealer Manager Fees ⁽²⁾		Annual Distribution and Stockholder Servicing Fee ⁽²⁾
Open Programs ⁽³⁾
CCPT V
Class A Shares	7%	2%		—%
Class T Shares ⁽⁴⁾	3%	2%		0.8%	^{(5) (6)}

INAV ⁽⁷⁾
Wrap Class Shares	—%	0.55%	⁽⁶⁾	—%
Advisor Class Shares	up to 3.75%	0.55%	⁽⁶⁾	0.5%	⁽⁶⁾
Institutional Class Shares	—%	0.25%	⁽⁶⁾	—%

CCIT III ⁽⁸⁾
Class A Shares	7%	2%		—%
Class T Shares	3%	2%		1%	⁽⁶⁾

_______________________________________________


(1)	The Company reallowed 100% of selling commissions earned to participating broker-dealers during the three and nine months ended September 30, 2016 and 2015.


(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)	CCIT II closed its offering during the three months ended September 30, 2016. The program’s fee structure was similar to that of CCPT V.


(4)	Commencing on April 29, 2016, CCPT V began offering Class T shares of common stock in addition to the class of shares of common stock previously offered (now referred to as Class A shares).


(5)	Subsequent to September 30, 2016, the distribution and stockholder servicing fee was amended to be 1.0%.


(6)	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. The maximum amount of the distribution and stockholder servicing fee with respect to sales of Class T shares is 4.0% of the gross offering proceeds for CCPT V and CCIT III.


(7)	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.


(8)	On September 22, 2016, the registration statement for the initial public offering of CCIT III was declared effective by the SEC, consisting of Class A shares of common stock and Class T shares 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 September 30, 2016:



Program	Acquisition Fees ⁽¹⁾	Disposition Fees	Performance Fees ⁽²⁾	Financing Coordination Fee ⁽³⁾
Open Programs
CCPT V	2%	1%	15%	—
INAV	—	—	—	—
CCIT III	2%	1%	15%	1%

Closed Programs
CCIT II	2%	1%	15%	—
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 a 6% annual cumulative, non-compounded return (8% in the case of CCIT II and CCPT IV).


(3)	Financing coordination fee payable for services in connection with the origination, assumption, or refinancing for any debt (other than loans advanced by the Company) to acquire properties or make other permitted investments.

Management Service Revenue [Member]

Schedule of Related Party Transactions

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



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

Closed Programs
CCIT II	0.65% - 0.75%	—
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) The performance fee is limited to 10% of the aggregate total return, for each class, for any individual year.

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 nine months ended September 30, 2016 and 2015 (in thousands).



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Offering-related fees and reimbursements
Selling commissions ⁽¹⁾	$	5,008	$	3,328	$	18,112	$	8,345
Dealer manager and distribution fees ⁽²⁾	2,237		1,258		7,292		3,143
Reimbursement revenue	2,300		1,264		7,446		2,995
Offering-related fees and reimbursements	9,545		5,850		32,850		14,483

Transaction service fees and reimbursements
Acquisition fees	2,813		6,233		8,273		14,913
Disposition fees ⁽³⁾	—		—		—		4,350
Reimbursement revenues	686		403		2,024		1,594
Transaction service fees and reimbursements	3,499		6,636		10,297		20,857

Management fees and reimbursements
Asset and property management fees and leasing fees	53		108		159		332
Advisory and performance fee revenue	13,011		10,998		37,621		32,674
Reimbursement revenues	4,430		2,882		12,803		8,503
Management fees and reimbursements	17,494		13,988		50,583		41,509

Interest income on Affiliate Lines of Credit	—		306		308		967

Total related party revenues⁽⁴⁾	$	30,538	$	26,780	$	94,038	$	77,816

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(1)	The Company reallowed 100% of selling commissions earned to participating broker-dealers during the three and nine months ended September 30, 2016 and 2015.

(2)

During the three and nine months ended September 30, 2016, the Company reallowed $0.9 million and $2.8 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 nine months ended September 30, 2015, the Company reallowed $0.6 million and $1.3 million, respectively, of such fees.


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


(4)	Total related party revenues excludes fees earned from 1031 real estate programs of $0.5 million and $1.1 million for the three and nine months ended September 30, 2016, respectively and fees earned from 1031 real estate programs of $1.1 million and $4.7 million for the three and nine months ended September 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 September 30, 2016 (carrying amount in thousands):



	September 30, 2016
Cole REIT	% of Outstanding Shares Owned	Carrying Amount of Investment
CCPT V	1.00%	$	1,448
INAV	0.09%	143
CCIT II	0.44%	1,299
CCIT III	100%	2,697
CCPT IV	0.01%	115
Funds not yet in offering	N/A	400
		$	6,102