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Equity Investments in the Managed Programs and Real Estate (Tables)
 9 Months Ended
Sep. 30, 2020
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of equity method investments
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 September 30,Nine Months Ended September 30,
2020201920202019
Distributions of Available Cash (Note 3)
$1,168 $5,480 $5,113 $14,930 
Amortization of basis differences on equity method investments in the Managed Programs
(158)(385)(726)(1,070)
Proportionate share of equity in earnings (losses) of equity investments in the Managed Programs79 96 (2,778)621 
Other-than-temporary impairment charges on our equity method investments in CWI 1 and CWI 2 (Note 8)
— — (47,112)— 
Gain on redemption of special general partner interests in CWI 1 and CWI 2, net (Note 3)
— — 33,009 — 
Total equity in earnings (losses) of equity method investments in the Managed Programs
1,089 5,191 (12,494)14,481 
Equity in earnings of equity method investments in real estate
630 896 2,882 2,232 
Amortization of basis differences on equity method investments in real estate
1 (318)(475)(1,502)
Total equity in earnings of equity method investments in real estate
631 578 2,407 730 
Equity in earnings (losses) of equity method investments in the Managed Programs and real estate
$1,720 $5,769 $(10,087)$15,211 
The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands):
% of Outstanding Interests Owned atCarrying Amount of Investment at
FundSeptember 30, 2020December 31, 2019September 30, 2020December 31, 2019
CPA:18 – Global (a)
4.337 %3.851 %$47,173 $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 %4,200 3,527 
$51,582 $129,567 
__________
(a)During the nine months ended September 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 nine months ended September 30, 2020, as described in Note 8.
(d)Investment is accounted for at fair value.
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/FundCo-ownerOwnership InterestSeptember 30, 2020December 31, 2019
Johnson Self StorageThird Party90%$69,404 $70,690 
WLT (a)
WLT5%48,362 — 
Kesko Senukai (b)
Third Party70%44,091 46,475 
Bank Pekao (b)
CPA:18 – Global50%26,173 26,388 
BPS Nevada, LLC (c)
Third Party15%23,535 22,900 
State Farm Mutual Automobile Insurance Co.CPA:18 – Global50%15,903 17,232 
Apply Sørco AS (d)
CPA:18 – Global49%6,536 8,040 
Fortenova Grupa d.d. (b)
CPA:18 – Global20%2,858 2,712 
$236,862 $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 any earnings from 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.