Fair Value Measures (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis, based on market rates of the Company’s positions and other observable interest rates as discussed in Note 6 –Investment Securities, at Fair Value andNote 11 –Derivatives and Hedging Activities, as of September 30, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those instruments fall (in thousands):

	Level 1		Level 2			Level 3		Balance as of September 30, 2017
Assets:
CMBS	$	—	$	—		$	41,677	$	41,677
Derivative assets	—		351			—		351
Total assets	$	—	$	351		$	41,677	$	42,028
	Level 1		Level 2			Level 3		Balance as of December 31, 2016
Assets:
CMBS	$	—	$	—		$	47,215	$	47,215
Derivative assets	—		199			—		199
Total assets	$	—	$	199		$	47,215	$	47,414
Liabilities:
Derivative liabilities	$	—	$	(3,547	)	$	—	$	(3,547	)

Reconciliations of Changes in Liabilities with Level 3 Inputs

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2017 and 2016 (in thousands):

	CMBS
Balance as of December 31, 2016	$	47,215
Total gains and losses
Unrealized loss included in other comprehensive income, net	(547		)
Purchases, issuance, settlements
Return of principal received	(4,077		)
Amortization included in net income, net	(914		)
Ending Balance, September 30, 2017	$	41,677

	CMBS
Balance as of December 31, 2015	$	53,304
Total gains and losses
Unrealized loss included in other comprehensive loss, net	(1,599		)
Purchases, issuance, settlements
Return of principal received	(3,786		)
Accretion included in net loss, net	179
Ending Balance, September 30, 2016	$	48,098

Reconciliations of Changes in Assets with Level 3 Inputs

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2017 and 2016 (in thousands):

	CMBS
Balance as of December 31, 2016	$	47,215
Total gains and losses
Unrealized loss included in other comprehensive income, net	(547		)
Purchases, issuance, settlements
Return of principal received	(4,077		)
Amortization included in net income, net	(914		)
Ending Balance, September 30, 2017	$	41,677

	CMBS
Balance as of December 31, 2015	$	53,304
Total gains and losses
Unrealized loss included in other comprehensive loss, net	(1,599		)
Purchases, issuance, settlements
Return of principal received	(3,786		)
Accretion included in net loss, net	179
Ending Balance, September 30, 2016	$	48,098

Fair Value, by Balance Sheet Grouping

The fair values of the Company’s financial instruments that are not reported at fair value in the consolidated balance sheets are reported below (dollar amounts in thousands):

	Level	Carrying Amount at September 30, 2017		Fair Value at September 30, 2017		Carrying Amount at December 31, 2016		Fair Value at December 31, 2016
Assets:
Mortgage notes receivable	3	$	20,510	$	28,539	$	22,764	$	30,460
Liabilities (1):
Mortgage notes payable and other debt, net	2	$	2,129,461	$	2,186,955	$	2,687,739	$	2,713,155
Corporate bonds, net	2	2,848,591		2,944,615		2,248,063		2,273,850
Convertible debt, net	2	990,922		1,021,580		987,106		1,004,733
Credit facility	2	—		—		500,000		500,000
Total liabilities		$	5,968,974	$	6,153,150	$	6,422,908	$	6,491,738

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(1) Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs

Summary of Impairment Charges by Asset Class

The following table presents the impairment charges by asset class recorded during the nine months ended September 30, 2017 (dollar amounts in thousands):

	Nine Months Ended September 30, 2017
Properties impaired (1)	53
Asset classes impaired:
Investment in real estate assets, net	$	30,327
Investment in direct financing leases, net	553
Below-market lease liabilities, net	(23		)
Total impairment loss	$	30,857

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(1) Six of these properties were disposed of during the nine months ended September 30, 2017.