Rent and Tenant Receivables and Other Assets, Net

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and December 31, 2020 (in thousands):

	June 30, 2021		December 31, 2020
Straight-line rent receivable, net	$	284,003	$	278,831
Accounts receivable, net	47,229		53,051
Deferred costs, net (1)	3,500		5,185
Investment in direct financing leases, net	5,806		6,547
Investment in Retained REITs (2)	7,929		7,255
Prepaid expenses	5,646		3,850
Leasehold improvements, property and equipment, net (3)	3,398		3,991
Other assets, net	7,675		7,910
Total	$	365,186	$	366,620

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(1)Amortization expense for deferred costs related to the revolving credit facilities totaled $0.8 million for each of the three months ended June 30, 2021 and 2020, and $1.7 million and $1.5 million for the six months ended June 30, 2021 and 2020, respectively. Accumulated amortization for deferred costs related to the revolving credit facilities was $54.6 million and $52.9 million as of June 30, 2021 and December 31, 2020, respectively.

(2)On February 1, 2018, the Company sold certain of its equity investments to CCA Acquisition, LLC, an affiliate of CIM Group, LLC, 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” and, collectively with CCIT II and CCIT III, the “Retained REITs”). On December 21, 2020, CIM Real Estate Finance Trust, Inc. acquired CCIT III and CCPT V. On March 1, 2021, Griffin Capital Essential Asset REIT, Inc. acquired CCIT II. Subsequent to the Company’s sale of Cole Capital, it carries these investments at fair value, as it does not exert significant influence over the Retained REITs, and any changes in the fair value are recognized in other income, net in the accompanying consolidated statement of operations. During the six months ended June 30, 2021 and 2020, the Company recognized a gain of $0.7 million and a loss of $0.7 million, respectively, related to the change in fair value.

(3)Amortization expense for leasehold improvements totaled $0.1 million and $0.3 million for the three and six months ended June 30, 2021, respectively, with no related write-offs. Amortization expense for leasehold improvements totaled $0.1 million and $0.3 million for the three and six months ended June 30, 2020, respectively, with no related write-offs. Accumulated amortization was $3.6 million and $3.4 million as of June 30, 2021 and December 31, 2020, respectively. Depreciation expense for property and equipment totaled $0.3 million and $0.5 million for the three and six months ended June 30, 2021, respectively. Depreciation expense for property and equipment totaled $0.3 million and $0.6 million for the three and six months ended June 30, 2020, respectively. Accumulated depreciation was $7.0 million and $6.5 million as of June 30, 2021 and December 31, 2020, respectively.