Investments (Tables)

3 Months Ended

Mar. 31, 2020

During the three months ended March 31, 2020, the Company had the following real estate activity, net of accumulated depreciation and amortization (dollars in thousands):

	Number of Properties									Dollar Amount of Investments
	Held in Use			Held for Sale			Total			Held in Use			Held for Sale			Total
Gross balance, December 31, 2019		1,750			2			1,752		$	6,140,775		$	1,223		$	6,141,998
Acquisitions/improvements ⁽¹⁾		27			—			27			215,011			—			215,011
Dispositions of real estate ⁽²⁾		(5	)		(2	)		(7	)		(17,114	)		(1,223	)		(18,337	)
Transfers to Held for Sale		(5	)		5			—			(3,362	)		3,362			—
Transfers from Held for Sale		—			—			—			—			—			—
Impairments ⁽³⁾		—			—			—			(40,468	)		—			(40,468	)
Write-off of intangibles		—			—			—			(26,594	)		—			(26,594	)
Other		—			—			—			(1,330	)		—			(1,330	)
Gross balance, March 31, 2020		1,767			5			1,772			6,266,918			3,362			6,270,280
Accumulated depreciation and amortization											(855,787	)		(236	)		(856,023	)
Net balance, March 31, 2020 ⁽⁴⁾										$	5,411,131		$	3,126		$	5,414,257

⁽¹⁾	Includes investments of $7.6 million in revenue producing capitalized expenditures, as well as $1.6 million of non-revenue producing capitalized expenditures during the three months ended March 31, 2020.

⁽²⁾	For the three months ended March 31, 2020, the total gain on disposal of assets for properties held in use and held for sale was $0.6 million and $0.1 million, respectively.

⁽³⁾	^{Impairments on owned real estate is comprised of $40.2 million of real estate and intangible asset impairment and $0.3 million of allowance for credit losses on direct financing leases.}

⁽⁴⁾	^{Reconciliation of total owned investments to the accompanying consolidated balance sheet at March 31, 2020 is as follows:}

Operating lease held in use land and buildings, net	$	5,146,530
Intangible lease assets, net		381,398
Real estate assets under direct financing leases, net		7,300
Real estate assets held for sale, net		3,126
Intangible lease liabilities, net		(124,097	)
Net balance	$	5,414,257

Schedule of Operating Lease Income

The following table summarizes the components of rental income recognized on these operating leases in the accompanying consolidated statements of operations (in thousands):

	Three Months Ended March 31,
	2020		2019
Base cash rent	$	116,546	$	96,799
Variable cash rent (including reimbursables)		3,389		3,638
Straight-line rent, net of bad debt expense		1,094		2,907
Amortization of above- and below- market lease intangibles, net ⁽¹⁾		334		723
Total rental income	$	121,363	$	104,067

⁽¹⁾	Excludes amortization of in-place leases of $8.8 million and $6.7 million for the three months ended March 31, 2020 and 2019, respectively, which is included in depreciation and amortization expense in the accompanying consolidated statements of operations.

Schedule of Minimum Future Contractual Rent to be Received from Operating Lease

Scheduled minimum future contractual rent to be received under the remaining non-cancellable term of these operating leases (including contractual fixed rent increases occurring on or after April 1, 2020) at March 31, 2020 are as follows (in thousands):

	March 31, 2020
Remainder of 2020	$	354,330
2021		461,791
2022		444,470
2023		423,969
2024		399,829
Thereafter		3,037,487
Total future minimum rentals	$	5,121,876

Schedule of Lease Intangible Assets and Liabilities, Net of Accumulated Amortization

The following table details lease intangible assets and liabilities, net of accumulated amortization (in thousands):

	March 31, 2020			December 31, 2019
In-place leases	$	454,363		$	457,616
Above-market leases		97,296			95,002
Less: accumulated amortization		(170,261	)		(167,539	)
Intangible lease assets, net	$	381,398		$	385,079

Below-market leases	$	174,965		$	176,816
Less: accumulated amortization		(50,868	)		(49,481	)
Intangible lease liabilities, net	$	124,097		$	127,335

Summary of Impairment and Credit Losses Recognized

The following table summarizes total impairments and allowance for credit losses recognized in the accompanying consolidated statements of operations (in thousands):

	Three Months Ended March 31,
	2020		2019
Real estate and intangible asset impairment	$	40,164	$	3,692
Allowance for credit losses on direct financing leases		304		—
Allowance for credit losses on loans receivable		306		—
Total impairment loss	$	40,774	$	3,692