Net Investments in Properties and Real Estate Under Construction (Tables)

12 Months Ended

Dec. 31, 2013

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



	December 31,
	2013			2012
Land	$	66,066		$	60,493
Buildings	217,304			193,067
Furniture, fixtures, and equipment	—			1,245
Less: Accumulated depreciation	(15,354		)	(7,757		)
	$	268,016		$	247,048

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



	December 31,
	2013			2012
Land	$	553,389		$	491,584
Buildings	1,848,926			1,614,188
Less: Accumulated depreciation	(129,051		)	(77,245		)
	$	2,273,264		$	2,028,527

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the fair values of the assets acquired and liabilities assumed in the acquisition (in thousands).



Assets Acquired at Fair Value:
Land	$	91,691
Buildings	262,651
Intangible assets	57,750
Liabilities Assumed at Fair Value:
Non-recourse debt	(222,680		)
Accounts payable, accrued expenses and other liabilities	(9,050		)
Prepaid and deferred rental income	(15,488		)
Net Assets Acquired	$	164,874

Schedule of Future Minimum Rental Payments for Operating Leases

Scheduled future minimum rents, exclusive of renewals and expenses paid by tenants and future CPI-based adjustments, under non-cancelable operating leases at December 31, 2013 are as follows (in thousands):



Years Ending December 31,	Total
2014	$	236,286
2015	237,463
2016	238,841
2017	239,980
2018	242,033
Thereafter	2,776,405
Total	$	3,971,008

Other Real Estate, Roll Forward

The following table provides the activity of our Real estate under construction (in thousands):



	Years Ended December 31,
	2013			2012
Beginning balance	$	71,285		$	90,176
Capitalized funds ^(a)	90,007			121,003
Placed into service ^(b)	(42,225		)	(142,085		)
Capitalized interest ^(c)	5,208			2,100
Building improvements and other	3,660			91
Ending balance ^(d)	$	127,935		$	71,285

__________

(a)

At December 31, 2013, we had five build-to-suit projects, of which three remained as open projects, and the balance included acquisition-related costs and fees of $2.3 million, which were capitalized. At December 31, 2012, we had ten build-to-suit projects, of which four remained as open projects, and the balance included acquisition-related costs and fees of $16.4 million, which were capitalized.

(b)

During the year ended December 31, 2013, there were three build-to-suit projects, of which two are completed and one is partially-completed, that were placed into service. The two completed build-to-suit projects for $26.1 million were reclassified as Real estate, at cost, and the partially-completed build-to-suit project for $12.6 million was reclassified as Operating real estate, at cost, at December 31, 2013. During the year ended December 31, 2012, there were six build-to-projects that were placed into service totaling $142.1 million, which were reclassified as Real estate, at cost. The remaining $3.5 million was related to improvements on an existing building we own that was reclassified as Real estate, at cost, at December 31, 2013.


(c)	Includes amortization of the mortgage discount and deferred financing costs and interest on a third-party debt related to one of the build-to-suit projects totaling $3.2 million and less than $0.1 million for the years ended December 31, 2013 and 2012, respectively, that will be capitalized as part of the building’s value once the project is completed.


(d)	The aggregate unfunded commitment on the remaining open projects totaled approximately $46.7 million and $92.4 million at December 31, 2013 and 2012, respectively.

Schedule of Change in Asset Retirement Obligation

The following table provides the activity of our asset retirement obligations, which are included in Accounts payable, accrued expenses and other liabilities on the consolidated balance sheets (in thousands):



	Years Ended December 31,
	2013		2012
Beginning balance	$	19,194	$	11,453
Additions	1,619		6,842
Accretion expense ^(a)	1,203		890
Foreign currency translation adjustments and other	60		9
Ending balance	$	22,076	$	19,194

__________

(a) Accretion of the liability is included in Property expenses and recognized over the economic life of the properties.