Debt (Tables)

3 Months Ended

Mar. 31, 2017

The following table summarizes the carrying value of debt as of March 31, 2017 and December 31, 2016, and the debt activity for the three months ended March 31, 2017 (in thousands):



					Three Months Ended March 31, 2017
		Balance as of December 31, 2016			Debt Issuances		Repayments, Extinguishment and Assumptions			Accretion and Amortization			Balance as of March 31, 2017
Mortgage notes payable:
	Outstanding balance	$	2,629,949		$	2,403	$	(78,966	)	$	—		$	2,553,386		⁽¹⁾
	Net premiums ⁽²⁾	36,751			—		—			(3,290		)	33,461
	Deferred costs	(16,633		)	—		—			817			(15,816		)
Other debt:
	Outstanding balance	20,947			—		(5,125		)	—			15,822
	Premium ⁽²⁾	92			—		—			(28		)	64
Mortgages and other debt, net		2,671,106			2,403		(84,091		)	(2,501		)	2,586,917
Corporate bonds:
	Outstanding balance	2,250,000			—		—			—			2,250,000
	Discount ⁽³⁾	(1,937		)	—		—			176			(1,761		)
	Deferred costs	(21,839		)	—		—			907			(20,932		)
Corporate bonds, net		2,226,224			—		—			1,083			2,227,307
Convertible debt:
	Outstanding balance	1,000,000			—		—			—			1,000,000
	Discount ⁽³⁾	(12,894		)	—		—			1,261			(11,633		)
	Deferred costs	(13,766		)	—		—			1,430			(12,336		)
Convertible debt, net		973,340			—		—			2,691			976,031
Credit facility:
	Outstanding balance	500,000			—		—			—			500,000
	Deferred costs ⁽⁴⁾	(3,422		)	—		—			570			(2,852		)
Credit facility, net		496,578			—		—			570			497,148

Total debt		$	6,367,248		$	2,403	$	(84,091	)	$	1,843		$	6,287,403

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(1)	Includes $41.8 million related to two mortgage notes payable in default.


(2)	Net premiums on mortgage notes payable and other debt were recorded upon the assumption of the respective debt instruments in relation to the various mergers and acquisitions. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective debt instruments using the effective-interest method.


(3)	Discounts on the corporate bonds and convertible debt were recorded based upon the fair value of the respective debt instruments as of the respective issuance dates. Amortization of these discounts is recorded as an increase to interest expense over the remaining term of the respective debt instruments using the effective-interest method.


(4)	Deferred costs relate to the term portion of the credit facility.

Mortgage Notes Payable [Member]

Debt Instrument [Line Items]

Schedule of Debt

The Company’s mortgage notes payable consisted of the following as of March 31, 2017 (dollar amounts in thousands):



	Encumbered Properties	Gross Carrying Value of Collateralized Properties ⁽¹⁾		Outstanding Balance		Weighted-Average Interest Rate ⁽²⁾		Weighted-Average Years to Maturity
Fixed-rate debt ⁽³⁾	596	$	4,949,078	$	2,539,726	4.99	%	4.6
Variable-rate debt	1	30,846		13,660		3.79	%	0.4
Total ⁽⁴⁾	597	$	4,979,924	$	2,553,386	4.99	%	4.6

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(1)	Gross carrying value is gross real estate assets, including investment in direct financing leases, net of gross real estate liabilities.


(2)	Weighted-average interest rate for variable-rate debt represents the interest rate in effect as of March 31, 2017.


(3)	Includes $188.7 million of variable-rate debt fixed by way of interest rate swap arrangements.


(4)	The table above does not include the loan amount associated with an Unconsolidated Joint Venture of $20.4 million, none of which is recourse to the Company. The loan represents a secured fixed rate of 5.20% and a maturity of July 2021.

Schedule of Aggregate Principal Payments of Mortgages

The following table summarizes the scheduled aggregate principal repayments due on mortgage notes subsequent to March 31, 2017 (in thousands):



	Total
April 1, 2017 - December 31, 2017 ⁽¹⁾	$	340,411
2018	108,694
2019	228,107
2020	280,668
2021	356,849
Thereafter	1,238,657
Total	$	2,553,386

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(1)	Includes $41.8 million of outstanding balances on mortgage notes payable, excluding accrued interest, related to two mortgage notes payable in default.

Other Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table is a summary of the outstanding balance and carrying value of the collateral by asset type as of March 31, 2017 (in thousands):



	Outstanding Balance		Collateral Carrying Value
Mortgage notes receivable	$	5,598	$	18,936
Intercompany mortgage loans	404		1,240
CMBS	9,820		30,688
Total	$	15,822	$	50,864

Corporate Bonds [Member]

Debt Instrument [Line Items]

Schedule of Debt

As of March 31, 2017, the OP had $2.25 billion aggregate principal amount of senior unsecured notes (the “Senior Notes”) outstanding comprised of the following (dollar amounts in thousands):



	Outstanding Balance March 31, 2017		Interest Rate		Maturity Date
2019 Senior Notes	750,000		3.000	%	February 6, 2019
2021 Senior Notes	400,000		4.125	%	June 1, 2021
2024 Senior Notes	500,000		4.600	%	February 6, 2024
2026 Senior Notes	600,000		4.875	%	June 1, 2026
Total balance and weighted-average interest rate	$	2,250,000	4.056	%

Convertible Debt [Member]

Debt Instrument [Line Items]

Schedule of Debt

The following table presents each of the Company’s $597.5 million aggregate principal amount of convertible senior notes due 2018 (the “2018 Convertible Notes”) and $402.5 million aggregate principal amount of convertible senior notes due 2020 (the “2020 Convertible Notes” and, together with the 2018 Convertible Notes, the “Convertible Notes”) with their respective terms (dollar amounts in thousands). The OP has issued corresponding identical convertible notes to the General Partner.



	Outstanding Balance ⁽¹⁾		Interest Rate		Conversion Rate ⁽²⁾	Maturity Date
2018 Convertible Notes	$	597,500	3.00	%	60.5997	August 1, 2018
2020 Convertible Notes	402,500		3.75	%	66.7249	December 15, 2020
Total balance and weighted-average interest rate	$	1,000,000	3.30	%

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(1)	Excludes the carrying value of the conversion options recorded within additional paid-in capital of $28.6 million and the unamortized discount of $11.6 million as of March 31, 2017. The discount will be amortized over the remaining weighted average term of 2.3 years.


(2)	Conversion rate represents the amount of the General Partner OP Units per $1,000 principal amount of Convertible Notes converted as of March 31, 2017, as adjusted in accordance with the applicable indentures as a result of cash dividend payments.