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Fair Value Measures (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value on a recurring basis
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018, 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 June 30, 2019
Assets:








Investment in Cole REITs
 
$
—

 
$
—

 
$
7,552

 
$
7,552

Liabilities:
 
 
 
 
 
 
 
 
Derivative liabilities

$
—

 
$
(27,594
)
 
$
—


$
(27,594
)



Level 1

Level 2

Level 3

Balance as of December 31, 2018
Assets:
 
 
 
 
 
 
 
 
Derivative assets
 
$
—

 
$
544

 
$
—

 
$
544

Investment in Cole REITs
 
—

 
—

 
7,844

 
7,844

Total assets
 
$
—

 
$
544

 
$
7,844

 
$
8,388
Reconciliations of the 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 six months ended June 30, 2019 (in thousands):
 
 
Investment in Cole REITs
Beginning balance, January 1, 2019
 
$
7,844

Unrealized loss included in other income, net
 
(292
)
Ending Balance, June 30, 2019
 
$
7,552

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2018 (in thousands):
 
 
CMBS (1)
 
Investment in Cole REITs
Beginning balance, January 1, 2018
 
$
40,974

 
$
3,264

Total gains and losses
 
 
 
 
Unrealized loss included in other comprehensive income, net
 
(899
)
 
—

Realized loss included in other income, net
 
(34
)
 
—

Unrealized gain included in other income, net
 
—

 
5,102

Purchases, issuance, settlements
 
 
 
 
Return of principal received
 
(4,632
)
 
—

Amortization included in net income, net
 
80

 
—

Sale of investments
 
—

 
(522
)
Ending Balance, June 30, 2018
 
$
35,489

 
$
7,844


___________________________________
(1)
As of December 31, 2018, the Company did not own any commercial mortgage-backed securities (“CMBS”). Prior to the repayment or sale, the Company’s CMBS were carried at fair value and were valued using Level 3 inputs.
Reconciliations of the 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 six months ended June 30, 2019 (in thousands):
 
 
Investment in Cole REITs
Beginning balance, January 1, 2019
 
$
7,844

Unrealized loss included in other income, net
 
(292
)
Ending Balance, June 30, 2019
 
$
7,552

The following are reconciliations of the changes in assets and liabilities with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2018 (in thousands):
 
 
CMBS (1)
 
Investment in Cole REITs
Beginning balance, January 1, 2018
 
$
40,974

 
$
3,264

Total gains and losses
 
 
 
 
Unrealized loss included in other comprehensive income, net
 
(899
)
 
—

Realized loss included in other income, net
 
(34
)
 
—

Unrealized gain included in other income, net
 
—

 
5,102

Purchases, issuance, settlements
 
 
 
 
Return of principal received
 
(4,632
)
 
—

Amortization included in net income, net
 
80

 
—

Sale of investments
 
—

 
(522
)
Ending Balance, June 30, 2018
 
$
35,489

 
$
7,844


___________________________________
(1)
As of December 31, 2018, the Company did not own any commercial mortgage-backed securities (“CMBS”). Prior to the repayment or sale, the Company’s CMBS were carried at fair value and were valued using Level 3 inputs.
Fair value, by balance sheet grouping The fair values of the Company’s financial instruments are reported below (dollar amounts in thousands):
 
 
Level
 
Carrying Amount at June 30, 2019
 
Fair Value at June 30, 2019
 
Carrying Amount at December 31, 2018
 
Fair Value at December 31, 2018
Liabilities (1):
 
 
 
 
 
 
 
 
 
 
Mortgage notes payable and other debt, net
 
2
 
$
1,754,571

 
$
1,814,875

 
$
1,933,209

 
$
1,961,496

Corporate bonds, net
 
2
 
2,646,213

 
2,806,706

 
3,395,885

 
3,368,928

Convertible debt, net
 
2
 
399,561

 
406,372

 
398,591

 
396,905

Credit facility
 
2
 
900,000

 
900,000

 
403,000

 
403,000

Total liabilities
 
 
 
$
5,700,345

 
$
5,927,953

 
$
6,130,685

 
$
6,130,329


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