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Equity Investment in Real Estate and the Managed REITs (Tables)
 12 Months Ended
Dec. 31, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments
The following table sets forth our ownership interests in our equity investments in real estate, excluding the Managed REITs, and their respective carrying values (dollars in thousands):
 
 
 
 
Ownership Interest
 
Carrying Value at December 31,
Lessee
 
Co-owner(s)
 
at December 31, 2013
 
2013
 
2012
Schuler A.G. (a) (b) (c)
 
CPA®:16 – Global
 
67
%
 
$
65,798

 
$
62,006

Hellweg Die Profi-Baumärkte GmbH 
& Co. KG (Hellweg 2) (a) (c) (d) (e)
 
CPA®:16 – Global/ CPA®:17 – Global
 
38
%
 
27,923

 
42,387

Advanced Micro Devices (b) (c)
 
CPA®:16 – Global
 
33
%
 
22,392

 
23,667

The New York Times Company
 
CPA®:16 – Global/CPA®:17 – Global
 
18
%
 
21,543

 
20,584

C1000 Logistiek Vastgoed B.V. (a) (b) (d)
 
CPA®:17 – Global
 
15
%
 
13,673

 
14,929

The Upper Deck Company (c)
 
CPA®:16 – Global
 
50
%
 
7,518

 
7,198

Del Monte Corporation (b) (c) (d)
 
CPA®:16 – Global
 
50
%
 
7,145

 
8,318

Waldaschaff Automotive GmbH and Wagon Automotive Nagold GmbH (a)
 
CPA®:17 – Global
 
33
%
 
7,267

 
6,323

Builders FirstSource, Inc. (c) 
 
CPA®:16 – Global
 
40
%
 
4,968

 
5,138

PetSmart, Inc. (c)
 
CPA®:16 – Global
 
30
%
 
3,877

 
3,808

Consolidated Systems, Inc. (b) (c) 
 
CPA®:16 – Global
 
60
%
 
3,176

 
3,278

Wanbishi Archives Co. Ltd. (a) (f) (g)
 
CPA®:17 – Global
 
3
%
 
395

 
(736
)
U.S. Airways Group, Inc. (h)
 
Third party
 
75
%
 
—

 
7,995

The Talaria Company (Hinckley) (h)
 
CPA®:16 – Global
 
—

 
—

 
7,702

SaarOTEC (a) (c) (g)
 
CPA®:16 – Global
 
50
%
 
(639
)
 
(116
)
 
 
 
 
 
 
$
185,036

 
$
212,481

___________
(a)
The carrying value of the investment is affected by the impact of fluctuations in the exchange rate of the foreign currency.
(b)
Represents a tenancy-in-common interest, under which the investment is under common control by us and our investment partner. With the exception of Schuler A.G., these investments are tenancy-in-common interests whereby the property is encumbered by debt for which we are jointly and severally liable. The aggregate amount due under the arrangements was approximately $171.0 million at December 31, 2013. Of this amount, $43.9 million represents the aggregate amount we agreed to pay and is included within the carrying value of each of these investments, where applicable.
(c)
Subsequent to the CPA®:16 Merger in January 2014, we consolidate these wholly-owned or majority-owned investments (Note 20).
(d)
The decrease in carrying value is due to the distributions made to us.
(e)
The decrease in carrying value is primarily due to our share of the German real estate transfer tax incurred by the investment. Please see “Hellweg 2 Restructuring” below for more information.
(f)
We acquired our interest in this investment in December 2012.
(g)
At December 31, 2013 and 2012, as applicable, we intended to fund our share of the investment’s future operating deficits if the need arose. However, we had no legal obligation to pay for any of the investment’s liabilities nor did we have any legal obligation to fund operating deficits.
(h)
These investments were sold in 2013. Please see “Disposition of Unconsolidated Real Estate Investment” below for more information.
 
 
% of Outstanding Shares Owned at
 
Carrying Amount of Investment at
 
 
December 31,
 
December 31,
Fund
 
2013
 
2012
 
2013 (a) (b)
 
2012 (a)
CPA®:16 – Global (c)
 
18.533
%
 
18.330
%
 
$
282,520

 
$
296,301

CPA®:16 – Global operating partnership (d)
 
0.015
%
 
0.015
%
 
813

 
17,140

CPA®:17 – Global (e)
 
1.910
%
 
1.290
%
 
57,753

 
38,977

CPA®:17 – Global operating partnership (f)
 
0.009
%
 
0.015
%
 
—

 
—

CPA®:18 – Global (g)
 
0.127
%
 
100.000
%
 
320

 
—

CPA®:18 – Global operating partnership (h)
 
0.015
%
 
N/A

 
209

 
—

CWI
 
0.538
%
 
0.400
%
 
3,369

 
727

CWI operating partnership
 
0.015
%
 
0.015
%
 
—

 
—

 
 
 

 
 

 
$
344,984

 
$
353,145

___________
(a)
Includes asset management fees receivable, for which 197,231 shares, 3,781 class A shares and 43,850 shares of CPA®:17 – Global, CPA®:18 – Global and CWI, respectively, were issued during the first quarter of 2014.
(b)
At December 31, 2013, the aggregate unamortized basis differences on our equity investments in the Management REITs were $9.7 million.
(c)
We received distributions of $25.3 million, $24.3 million and $12.4 million from this affiliate during 2013, 2012, and 2011, respectively. At December 31, 2011, our investment in CPA®:16 – Global comprised more than 20% of our total assets. Therefore, the audited consolidated financial statements of CPA®:16 – Global are included in this Report.
(d)
During 2013 and 2012, we recognized other-than-temporary impairment charges of $15.4 million and $9.9 million respectively, on this investment to reduce the carrying value of our interest in the investment to its estimated fair value (Note 10). In addition, we received distributions of $15.2 million, $15.4 million and $6.2 million from this investment during 2013, 2012, and 2011, respectively.
(e)
We received distributions of $3.0 million, $1.6 million, and $0.6 million from this affiliate during 2013, 2012, and 2011, respectively.
(f)
We received distributions of $16.9 million, $14.6 million, and $9.4 million from this affiliate during 2013, 2012, and 2011, respectively.
(g)
On September 13, 2012, we purchased 1,000 shares of CPA®:18 – Global common stock, par value $0.001 per share, for an aggregate purchase price of $9,000. On December 14, 2012, we made a capital contribution of $0.2 million in exchange for 22,222 shares of CPA®:18 – Global common stock. We consolidated this investment until July 25, 2013, when CPA®:18 – Global reached its minimum offering proceeds and began admitting new stockholders. We currently account for our interests under the equity method of accounting (Note 2).
(h)
On July 3, 2013, we purchased a 0.015% special general partnership interest in CPA®:18 – Global’s operating partnership for $0.2 million. This special general partnership interest entitles us to receive distributions of our proportionate share of earnings up to 10% of the Available Cash from CPA®:18 – Global’s operating partnership (Note 4).
The following table presents net income from equity investments in real estate and the Managed REITs, which represents our proportionate share of the income or losses of these investments as well as certain adjustments related to other-than-temporary impairment charges and amortization of basis differences related to purchase accounting adjustments (in thousands):
 
Years Ended December 31,
 
2013
 
2012
 
2011
Proportionate share of earnings from equity investments in the Managed REITs
$
7,057

 
$
8,867

 
$
19,912

Amortization of basis differences on equity investments in the Managed REITs
(5,115
)
 
(4,302
)
 
(3,613
)
Other-than-temporary impairment charges on the Special Member Interest in
   CPA®:16 – Global’s operating partnership
(15,383
)
 
(9,910
)
 
—

Distributions of Available Cash (Note 4)
34,121

 
30,009

 
15,535

Deferred revenue earned (Note 4)
9,436

 
9,436

 
6,291

Total equity earnings from the Managed REITs
30,116

 
34,100

 
38,125

Equity earnings from other equity investments
26,928

 
29,864

 
13,602

Amortization of basis differences on other equity investments
(4,313
)
 
(1,572
)
 
(499
)
Net income from equity investments in real estate and the Managed REITs
$
52,731

 
$
62,392

 
$
51,228

The following tables present estimated combined summarized financial information for the Managed REITs. Certain prior year amounts have been retrospectively adjusted to reflect the impact of discontinued operations. Amounts provided are expected total amounts attributable to the Managed REITs and do not represent our proportionate share (in thousands):
 
December 31,
 
2013
 
2012
Real estate, net
$
7,218,177

 
$
6,049,926

Other assets
2,128,862

 
2,002,620

Total assets
9,347,039

 
8,052,546

Debt
(4,237,044
)
 
(3,509,394
)
Accounts payable, accrued expenses, and other liabilities
(571,097
)
 
(450,362
)
Total liabilities
(4,808,141
)
 
(3,959,756
)
Redeemable noncontrolling interest
—

 
(21,747
)
Noncontrolling interests
(192,492
)
 
(170,140
)
Stockholders’ equity
$
4,346,406

 
$
3,900,903

 
 
Years Ended December 31,
 
2013
 
2012
 
2011
Revenues
$
796,637

 
$
860,983

 
$
734,870

Expenses (a) (b)
(701,830
)
 
(759,435
)
 
(611,417
)
Income from continuing operations
$
94,807

 
$
101,548

 
$
123,453

Net income attributable to the Managed REITs (c) (d)
$
104,342

 
$
128,455

 
$
116,560

 ___________
(a)
Total net expenses recognized by the Managed REITs during the year ended December 31, 2012 included $3.1 million of CPA®:15 Merger-related expenses incurred by CPA®:15, of which our share was approximately $0.2 million.
(b)
Total net expenses recognized by the Managed REITs during the year ended December 31, 2011 included the following items related to the CPA®:14/16 Merger: (i) $78.8 million of net gains recognized by CPA®:14 in connection with selling certain properties to us, CPA®:17 – Global and third parties, of which our share was approximately $7.4 million; (ii) a net gain of $28.7 million recognized by CPA®:16 – Global in connection with the CPA®:14/16 Merger as a result of the fair value of CPA®:14 exceeding the total merger consideration, of which our share was approximately $5.0 million; (iii) $13.6 million of expenses incurred by CPA®:16 – Global related to the CPA®:14/16 Merger, of which our share was approximately $2.4 million; and (iv) a $2.8 million net loss recognized by CPA®:16 – Global in connection with the prepayment of certain non-recourse mortgage loans, of which our share was approximately $0.5 million.
(c)
Inclusive of impairment charges recognized by the Managed REITs totaling $25.6 million, $25.0 million and $57.7 million during the years ended December 31, 2013, 2012 and 2011, respectively. These impairment charges reduced our income earned from these investments by approximately $4.7 million, $4.2 million and $7.8 million during the years ended December 31, 2013, 2012 and 2011, respectively.
(d)
Amounts included net gains on sale of real estate recorded by the Managed REITs totaling $7.7 million, $35.4 million and $45.4 million during the years ended December 31, 2013, 2012 and 2011, respectively.

The following tables present combined summarized financial information of our equity investments. Amounts provided are the total amounts attributable to the investments and do not represent our proportionate share (in thousands):
 
December 31,
 
2013
 
2012
Real estate, net
$
1,038,422

 
$
1,106,640

Other assets
146,635

 
179,654

Total assets
1,185,057

 
1,286,294

Debt
(695,429
)
 
(740,595
)
Accounts payable, accrued expenses, and other liabilities
(77,819
)
 
(58,827
)
Total liabilities
(773,248
)
 
(799,422
)
Redeemable noncontrolling interest
—

 
(21,747
)
Noncontrolling interests
176

 
—

Stockholders’ equity
$
411,985

 
$
465,125

 
 
Years Ended December 31,
 
2013
 
2012
 
2011
Revenues
$
117,278

 
$
108,242

 
$
118,819

Expenses
(50,907
)
 
(64,453
)
 
(75,992
)
Impairment charge (b)
—

 
—

 
(8,602
)
Income from continuing operations
$
66,371

 
$
43,789

 
$
34,225

Net income attributable to the Managed REITs (a) (b)
$
15,762

 
$
79,591

 
$
34,225

___________
(a)
Amount during the year ended December 31, 2012 included a net gain of approximately $34.0 million recognized by a jointly-owned investment as a result of selling its interests in the Médica investment. Our share of the gain was approximately $15.1 million.
(b)
Amount during the year ended December 31, 2011 included an impairment charge of $8.6 million incurred by a jointly-owned investment that leased property to Symphony IRI Group, Inc. in connection with a potential sale of the property owned by the investment, of which our share was approximately $0.4 million. The investment completed the sale in June 2011.