Rent and Tenant Receivables and Other Assets, Net

9 Months Ended

Sep. 30, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Rent and Tenant Receivables and Other Assets, Net

Rent and tenant receivables and other assets, net consisted of the following as of September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019		December 31, 2018
Straight-line rent receivable, net ⁽¹⁾	$	261,074	$	259,106
Accounts receivable, net⁽¹⁾	38,732		36,939
Deferred costs, net ⁽²⁾	10,359		17,515
Investment in direct financing leases, net	9,914		13,254
Investment in Cole REITs ⁽³⁾	7,552		7,844
Prepaid expenses	6,662		5,022
Leasehold improvements, property and equipment, net ⁽⁴⁾	5,042		9,754
Other assets, net	8,120		16,658
Total	$	347,455	$	366,092

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(1)

As of December 31, 2018, allowance for uncollectible accounts included in straight-line rent receivable, net and accounts receivable, net was $1.0 million and $5.3 million, respectively. Upon adoption of ASC 842, the Company recognizes all changes in the collectability assessment for an operating lease as an adjustment to rental revenue and does not record an allowance for uncollectible accounts. Any recoveries for those receivables reserved prior to adoption of ASC 842 will be recorded as an adjustment to rental revenue.

(2)

Amortization expense for deferred costs related to the revolving credit facilities totaled $0.9 million and $1.3 million for the three months ended September 30, 2019 and 2018, respectively, and $2.9 million and $6.0 million for the nine months ended September 30, 2019 and 2018, respectively. Accumulated amortization for deferred costs related to the revolving credit facilities was $50.6 million and $47.6 million as of September 30, 2019 and December 31, 2018, respectively.


(3)	On February 1, 2018, the Company completed the sale of Cole Capital (as described in Note 13 — Discontinued Operations), retaining interests in Cole Office & Industrial REIT (CCIT II), Inc. (“CCIT II”), Cole Office & Industrial REIT (CCIT III), Inc. (“CCIT III”) and Cole Credit Property Trust V, Inc. (“CCPT V”).

(4)

Amortization expense for leasehold improvements totaled $0.1 million and $0.3 million for the three months ended September 30, 2019 and 2018, respectively, and $0.6 million and $0.9 million for the nine months ended September 30, 2019 and 2018, respectively, with no related write-offs. Accumulated amortization was $2.7 million and $5.9 million as of September 30, 2019 and December 31, 2018, respectively. Depreciation expense for property and equipment totaled $0.3 million for each of the three months ended September 30, 2019 and 2018, with no related write-offs. Depreciation expense for property and equipment totaled $1.0 million for the nine months ended September 30, 2019, inclusive of write-offs of less than $0.1 million and $1.2 million for the nine months ended September 30, 2018, with no related write-offs. Accumulated depreciation was $5.1 million and $7.0 million as of September 30, 2019 and December 31, 2018, respectively. The Company disposed of $4.1 million, net, of leasehold improvements, property and equipment, which is included in restructuring in the accompanying consolidated statements of operations for the nine months ended September 30, 2019.