Rent and Tenant Receivables and Other Assets, Net

9 Months Ended

Sep. 30, 2020

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

Rent and tenant receivables and other assets, net consisted of the following as of September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020		December 31, 2019
Straight-line rent receivable	$	271,283	$	266,195
Accounts receivable	64,733		41,556
Mezzanine position	9,959		—
Deferred costs, net (1)	5,924		7,208
Investment in direct financing leases, net	8,198		9,341
Investment in Cole REITs (2)	6,943		7,552
Prepaid expenses	6,467		3,453
Leasehold improvements, property and equipment, net (3)	4,230		4,809
Other assets, net	13,502		8,281
Total	$	391,239	$	348,395

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(1)Amortization expense for deferred costs related to the revolving credit facilities totaled $0.8 million and $0.9 million for the three months ended September 30, 2020 and 2019, respectively, and $2.3 million and $2.9 million for the nine months ended September 30, 2020 and 2019, respectively. Accumulated amortization for deferred costs related to the revolving credit facilities was $52.1 million and $49.8 million as of September 30, 2020 and December 31, 2019, respectively.

(2)The Company has 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”), (collectively, the “Cole REITs”) and carries these investments at fair value. During the nine months ended September 30, 2020, the Company recognized a loss of $0.6 million related to the change in fair value, which is included in other income, net in the accompanying consolidated statements of operations.

(3)Amortization expense for leasehold improvements totaled $0.1 million for each of the three months ended September 30, 2020 and 2019, and $0.4 million and $0.6 million for the nine months ended September 30, 2020 and 2019, respectively, with no related write-offs. Accumulated amortization was $3.2 million and $2.8 million as of September 30, 2020 and December 31, 2019, respectively. Depreciation expense for property and equipment totaled $0.3 million for each of the three months ended September 30, 2020 and 2019, with no related write-offs. Depreciation expense for property and equipment totaled $0.8 million and $1.0 million for the nine months ended September 30, 2020 and 2019, respectively, inclusive of write-offs of less than $0.1 million for the nine months ended September 30, 2019. Accumulated depreciation was $6.3 million and $5.4 million as of September 30, 2020 and December 31, 2019, respectively.