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Equity Investments in the Managed Programs and Real Estate (Tables)
 6 Months Ended
Jun. 30, 2020
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 Programs, and their respective carrying values (dollars in thousands):
 
 
 
 
 
 
Carrying Value at
Lessee/Fund
 
Co-owner
 
Ownership Interest
 
June 30, 2020
 
December 31, 2019
Johnson Self Storage
 
Third Party
 
90%
 
$
69,823

 
$
70,690

WLT (a)
 
WLT
 
5%
 
49,210

 
—

Kesko Senukai (b)
 
Third Party
 
70%
 
41,807

 
46,475

Bank Pekao (b)
 
CPA:18 – Global
 
50%
 
25,906

 
26,388

BPS Nevada, LLC (c)
 
Third Party
 
15%
 
23,040

 
22,900

State Farm Mutual Automobile Insurance Co.
 
CPA:18 – Global
 
50%
 
16,343

 
17,232

Apply Sørco AS (d)
 
CPA:18 – Global
 
49%
 
6,692

 
8,040

Fortenova Grupa d.d. (formerly Konzum d.d.) (b)
 
CPA:18 – Global
 
20%
 
2,923

 
2,712

 
 
 
 
 
 
$
235,744

 
$
194,437

__________
(a)
Following the closing of the CWI 1 and CWI 2 Merger, we own 12,208,243 shares of common stock of WLT, which we account for as an equity method investment in real estate. The initial fair value of this investment was based on third-party market data, including implied asset values and market capitalizations for publicly traded lodging REITS. We follow the HLBV model for this investment and recognize within equity earnings our proportionate share of WLT’s earnings based on our ownership of common shares of WLT, after giving effect to preferred dividends owed by WLT (our investment in preferred shares of WLT is included within Other assets, net on our consolidated balance sheets as available-for-sale debt securities). We record our investment in shares of common stock of WLT on a one quarter lag (Note 3).
(b)
The carrying value of this investment is affected by fluctuations in the exchange rate of the euro.
(c)
This investment is reported using the HLBV model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.
(d)
The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone.

The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands):
 
 
% of Outstanding Interests Owned at
 
Carrying Amount of Investment at
Fund
 
June 30, 2020
 
December 31, 2019
 
June 30, 2020
 
December 31, 2019
CPA:18 – Global (a)
 
4.124
%
 
3.851
%
 
$
44,147

 
$
42,644

CPA:18 – Global operating partnership
 
0.034
%
 
0.034
%
 
209

 
209

CWI 1 (b) (c)
 
—
%
 
3.943
%
 
—

 
49,032

CWI 1 operating partnership (b)
 
—
%
 
0.015
%
 
—

 
186

CWI 2 (b) (c)
 
—
%
 
3.755
%
 
—

 
33,669

CWI 2 operating partnership (b)
 
—
%
 
0.015
%
 
—

 
300

CESH (d)
 
2.430
%
 
2.430
%
 
4,543

 
3,527

 
 
 
 
 
 
$
48,899

 
$
129,567


__________
(a)
During the six months ended June 30, 2020, we received asset management revenue from CPA:18 – Global primarily in shares of its common stock, which increased our ownership percentage in CPA:18 – Global (Note 3).
(b)
The CWI 1 and CWI 2 Merger closed on April 13, 2020, as described in Note 3.
(c)
We recognized other-than-temporary impairment charges on these investments during the six months ended June 30, 2020, as described in Note 8.
(d)
Investment is accounted for at fair value.
The following table presents Equity in earnings (losses) of equity method investments in the Managed Programs and real estate, 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):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Gain on redemption of special general partner interests in CWI 1 and CWI 2, net (Note 3)
$
33,009

 
$
—

 
$
33,009

 
$
—

Distributions of Available Cash (Note 3)
2,029

 
3,765

 
3,945

 
9,450

Proportionate share of equity in (losses) earnings of equity investments in the Managed Programs
(1,142
)
 
312

 
(2,857
)
 
525

Amortization of basis differences on equity method investments in the Managed Programs
(124
)
 
(356
)
 
(568
)
 
(685
)
Other-than-temporary impairment charges on our equity method investments in CWI 1 and CWI 2 (Note 8)
—

 
—

 
(47,112
)
 
—

Total equity in earnings (losses) of equity method investments in the Managed Programs
33,772

 
3,721

 
(13,583
)
 
9,290

Equity in earnings of equity method investments in real estate
448

 
774

 
2,252

 
1,336

Amortization of basis differences on equity method investments in real estate
(237
)
 
(544
)
 
(476
)
 
(1,184
)
Total equity in earnings of equity method investments in real estate
211

 
230

 
1,776

 
152

Equity in earnings (losses) of equity method investments in the Managed Programs and real estate
$
33,983

 
$
3,951

 
$
(11,807
)
 
$
9,442