We own equity interests in single-tenant net leased properties that are generally leased to companies through noncontrolling interests (i) in partnerships and limited liability companies that we do not control but over which we exercise significant influence or (ii) as tenants-in-common subject to common control. Generally, the underlying investments are jointly-owned with affiliates. We account for these investments under the equity method of accounting. Earnings for each investment are recognized in accordance with each respective investment agreement and where applicable, based upon an allocation of the investment's net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period. Investments in unconsolidated investments are required to be evaluated periodically. We periodically compare an investment's carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary. Additionally, we provide funding to developers for the acquisition, development and construction of real estate (“ADC Arrangement”). Under ADC Arrangements, we have provided two loans to third-party developers of real estate projects, which we account for as equity investments.

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values along with those ADC Arrangements that are recorded as equity investments (dollars in thousands):


	Ownership Interest	Carrying Value at
Lessee/Counterparty	at September 30, 2013	September 30, 2013		December 31, 2012
C1000 Logistiek Vastgoed B.V. ^{(a) (b)}	85%	$	81,853	$	81,516
U-Haul Moving Partners, Inc. and Mercury Partners, LP ^{(c) (d)}	12%		27,367		28,019
BPS Nevada, LLC (formerly known as BPS Parent, LLC)	15%		26,767		26,253
Madison Storage NYC, LLC ^(e)	85%		22,731		-
State Farm ^(f)	50%		21,182		-
Hellweg Die Profi-Baumärkte GmbH & Co. KG ^{(a) (c) (d) (g)}	33%		20,750		22,827
Berry Plastics Corporation ^{(c) (h)}	50%		17,875		18,529
Tesco plc ^{(a) (c)}	49%		17,231		17,487
Eroski Sociedad Cooperativa - Mallorca ^{(a) (d)}	30%		9,649		9,336
Dick’s Sporting Goods, Inc. ^(c)	45%		4,668		5,010
			250,073		208,977
Shelborne Property Associates, LLC ⁽ⁱ⁾	N/A		107,707		63,896
IDL Wheel Tenant, LLC ^(j)	N/A		5,947		2,260
		$	363,727	$	275,133

(e) In June 2013, we acquired an interest in Madison Storage NYC, LLC (“Madison Storage”), which is a VIE. This ownership interest represents our effective economic interest based upon certain contractual arrangements with our partner in this entity that enable or could require us to purchase their interest.

(f) This investment is jointly-owned with CPA®:18 – Global. See “Acquisition of Equity Investment” below.

(g) We received distributions of $1.3 million and $2.3 million from this investment during the nine months ended September 30, 2013 and 2012, respectively.

(h) We received distributions of $1.8 million and $1.7 million from this investment during the nine months ended September 30, 2013 and 2012, respectively.

(i) Represents a domestic ADC Arrangement that we account for under the equity method of accounting as the characteristics of the arrangement with the third-party developer are more similar to a jointly-owned investment or partnership rather than a loan. This investment is a VIE. We provided funding of $45.3 million to this investment during the nine months ended September 30, 2013. At September 30, 2013, the unfunded balance on the loan related to this investment was $18.7 million.

(j) Represents a domestic ADC Arrangement that we account for under the equity method of accounting as the characteristics of the arrangement with the third-party developer are more similar to a jointly-owned investment or partnership rather than a loan. This investment is a VIE. We provided funding of $3.7 million to this investment during the nine months ended September 30, 2013. At September 30, 2013, the unfunded balance on the loan related to this investment was $44.5 million.

We recognized net income from equity investments in real estate of $0.5 million and $1.0 million for the three months ended September 30, 2013 and 2012, respectively, and $3.4 million and $5.2 million for the nine months ended September 30, 2013 and 2012, respectively.

In August 2013, we and CPA®:18 – Global acquired an office facility from State Farm through a jointly-owned investment for a total cost of $115.6 million, which includes capitalized acquisition-related costs and fees totaling $5.6 million. We acquired a 50% interest in this venture for $57.8 million and account for this investment under the equity method of accounting. In connection with this transaction, the jointly-owned investment obtained non-recourse financing totaling $72.8 million, of which our share is $36.4 million, which is included within the carrying value of this investment. This mortgage loan bears a fixed annual interest rate of 4.5% and matures in September 2023.