Net Investments in Properties

6 Months Ended

Jun. 30, 2011

Real Estate Owned Disclosure Of Detailed Components [Abstract]

Real Estate Disclosure [Text Block]

Note 4.       Net Investments in Properties and Real Estate Under Construction

Real Estate

Real estate, which consists of land and buildings leased to others, at cost, and accounted for as operating leases, is summarized as follows (in thousands):

	June 30, 2011		December 31, 2010
Land	$	281,841	$	242,145
Buildings		812,130		688,259
Less: Accumulated depreciation		(28,191)		(16,274)
	$	1,065,780	$	914,130

Acquisitions of Real Estate

During the six months ended June 30, 2011, we entered into five domestic investments, which were classified as operating leases, including our $100.0 million investment with Terminal Freezers, Inc. for three cold storage facilities, at a total cost of $144.4 million, including net lease intangible assets totaling $17.1 million (see Other below) and acquisition-related fees and expenses. In connection with these investments, which we deemed to be real estate asset acquisitions under current authoritative accounting guidance, we capitalized acquisition-related costs and fees totaling $6.5 million.

Operating Real Estate

Operating real estate, which consists primarily ofour hotel and self-storage operations, at cost, is summarized as follows (in thousands):

	June 30, 2011		December 31, 2010
Land	$	24,690	$	1,330
Buildings		78,960		10,483
Furniture, Fixtures & Equipment		364		364
Less: Accumulated depreciation		(539)		(300)
	$	103,475	$	11,877

Acquisitions of Operating Real Estate

During the six months ended June 30, 2011, we entered into two domestic investments, which consisted of 25 self-storage properties at a total cost of $89.4million, including net lease intangible assets totaling $3.4million (see Other below). As these acquisitions were deemed to be business combinations under current authoritative accounting guidance, we expensed the acquisition-related fees and expenses of $2.7million, which are included in General and administrative expenses in the consolidated financial statements.

Real Estate Under Construction

During the six months ended June 30, 2011, we entered into eight build-to-suit projects located in the U.S., seven of which were with Dollar General Corp. as part of an estimated $40.0 million platform build-to-suit program covering up to 40 facilities, for a total cost of up to $21.9million on theseeight projects, based on estimated construction costs at the respective dates of acquisition. In connection with these investments, which were deemed to be real estate acquisitions under current authoritative accounting guidance, we capitalized acquisition-related costs and fees totaling $1.0million. Costs incurred and capitalized on our build-to-suit projects through June 30, 2011 totaled $82.9million, including fundings of $2.3million on projects entered into during 2011 and $24.4 million, net of amounts placed in service in 2011, on projects entered into in 2010,which have been included as Real estate under construction in the consolidated balance sheet.

At December 31, 2010, Real estate under construction consisted of $53.0 million in costs incurred and/or capitalized on several build-to-suit projects located in the U.S. and Poland.

Other

In connection with our prior acquisitions of properties, we have recorded net lease intangibles of $265.7 million, including $20.5million of net lease intangibles acquired in connection with our investment activity during the three months ended June 30, 2011. These intangible assets and liabilities are being amortized over periods ranging from 10 years to 40 years. In-place lease, tenant relationship and above-market rent intangibles are included in Intangible assets, net in the consolidated financial statements. Below-market rent intangibles are included in Prepaid and deferred rental income. Amortization of below-market and above-market rent intangibles is recorded as an adjustment to Lease revenues in the consolidated financial statements, while amortization of in-place lease and tenant relationship intangibles is included in Depreciation and amortization. Net amortization of intangibles, including the effect of foreign currency translation, was $3.6 million and $1.3million for the three and six months ended June 30, 2011 and $6.9million and $1.9million for the three and six months ended June 30, 2010, respectively.