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Risk Management and Use of Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table sets forth certain information regarding our derivative instruments (in thousands):
 
 
 
 
Asset Derivatives Fair Value at
 
Liability Derivatives Fair Value at
Derivatives Designated as Hedging Instruments
 
Balance Sheet Location
 
March 31, 2014
 
December 31, 2013
 
March 31, 2014
 
December 31, 2013
Interest rate caps
 
Other assets, net
 
$
29

 
$
2

 
$
—

 
$
—

Interest rate swaps
 
Other assets, net
 
1,479

 
1,618

 
—

 
—

Foreign currency forward contracts (a)
 
Accounts payable, accrued expenses and other liabilities
 
—

 
—

 
(12,893
)
 
(7,083
)
Interest rate swaps (a)
 
Accounts payable, accrued expenses and other liabilities
 
—

 
—

 
(5,216
)
 
(2,734
)
Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
 
 
Stock warrants (b)
 
Other assets, net
 
3,619

 
2,160

 
—

 
—

Interest rate swaps (c)
 
Accounts payable, accrued expenses and other liabilities
 
—

 
—

 
(11,361
)
 
(11,995
)
Total derivatives
 
 
 
$
5,127

 
$
3,780

 
$
(29,470
)
 
$
(21,812
)
__________
(a)
In connection with the CPA®:16 Merger, we acquired interest rate cap and swaps, and foreign currency forward contracts, which were in a net liability position, had fair values of $2.0 million and $5.5 million, respectively, at March 31, 2014.
(b)
In connection with the CPA®:16 Merger, we acquired warrants from CPA®:16 – Global, which had previously been granted by Hellweg 2 to CPA®:16 – Global, that had a fair value of $1.5 million at March 31, 2014. These warrants give us participation rights to any distributions made by Hellweg 2 and entitle us to a cash distribution that equals a certain percentage of the liquidity event price of Hellweg 2, should a liquidity event occur.
(c)
These interest rate swaps do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the underlying variable-rate debt.
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
(a)
Excludes net gains of $0.1 million recognized on unconsolidated jointly-owned investments for each of the three months ended March 31, 2014 and 2013.
(b)
Excludes net gains of $0.1 million recognized on unconsolidated jointly-owned investments for each of the three months ended March 31, 2014 and 2013.
The following tables present the impact of our derivative instruments on the consolidated financial statements (in thousands):
 
 
Amount of Gain (Loss) Recognized in
Other Comprehensive Income (Loss)on Derivatives (Effective Portion) (a)
 
 
Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships 
 
2014
 
2013
Interest rate swaps
 
$
(186
)
 
$
828

Interest rate caps
 
(17
)
 
(3
)
Foreign currency forward contracts
 
(2,664
)
 
2,248

Total
 
$
(2,867
)
 
$
3,073


 
 
Amount of Gain (Loss) Reclassified 
from Other Comprehensive
Income (Loss) into Income (Effective Portion) (b)
 
 
Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships 
 
2014
 
2013
Interest rate swaps
 
$
(701
)
 
$
(434
)
Foreign currency forward contracts
 
(384
)
 
47

Total
 
$
(1,085
)
 
$
(387
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
 
 
 
 
Amount of Gain (Loss) Recognized in
Income on Derivatives
 
 
Location of Gain (Loss) Recognized in Income
 
Three Months Ended March 31,
Derivatives Not in Cash Flow Hedging Relationships
 
 
2014
 
2013
Interest rate swaps
 
Interest expense
 
$
478

 
$
1,679

Stock warrants
 
Other income and (expenses)
 
—

 
280

Total
 
 
 
$
478

 
$
1,959
Schedule of Derivative Instruments
The interest rate swaps and cap that we had outstanding on our consolidated subsidiaries at March 31, 2014 are summarized as follows (currency in thousands):
 
 
 Number of Instruments

Notional Amount

Fair Value at March 31, 2014 (a)
Interest Rate Derivatives
 


Designated as Cash Flow Hedging Instruments
 
 
 
 
 
 
 
Interest rate swaps
 
14
 
$
132,253

 
$
(2,569
)
Interest rate swaps
 
2
 
€
8,328

 
(1,168
)
Interest rate caps (b)
 
2
 
€
112,259

 
29

Not Designated as Cash Flow Hedging Instruments
 
 
 

 
 
 
Interest rate swaps (c)
 
3
 
€
109,327

 
(11,361
)
 
 
 
 
 
 

 
$
(15,069
)
__________ 
(a)
Fair value amounts are based on the exchange rate of the euro at March 31, 2014, as applicable.
(b)
The applicable interest rate of the related debt was both 1.3%, which was below the strike price of the cap of 3.0% and 2.0% at March 31, 2014.
(c)
These interest rate swaps do not qualify for hedge accounting; however, they do protect against fluctuations in interest rates related to the underlying variable-rate debt.
The following table presents the foreign currency derivative contracts we had outstanding at March 31, 2014, which were designated as cash flow hedges (currency in thousands):
 
 
 Number of Instruments
 
Notional Amount
 
Fair Value at March 31, 2014 (a)
Foreign Currency Derivatives
 
 
 
Foreign currency forward contracts
 
79
 
€
171,204

 
$
(12,008
)
Foreign currency forward contracts
 
19
 
£
10,773

 
(885
)
 
 
 
 
 
 

 
$
(12,893
)
 __________ 
(a)
Fair value amounts are based on the applicable exchange rate of the foreign currency at March 31, 2014.
Schedules of Concentration of Risk, by Risk Factor
The percentages in the table below represent our directly-owned real estate properties and do not include our share of equity investments.
 
 
March 31, 2014
Region:
 
 
Total U.S.
 
66
%
Germany
 
12
%
Other Europe
 
21
%
Total Europe
 
33
%
Other international
 
1
%
Total international
 
34
%
Total
 
100
%
 
 
 
Asset Type:
 
 
Industrial
 
26
%
Office
 
25
%
Warehouse/Distribution
 
19
%
Retail
 
15
%
All other
 
15
%
Total
 
100
%
 
 
 
Tenant Industry:
 
 
Retail
 
22
%
Electronics
 
10
%
All other
 
68
%
Total
 
100
%