Equity Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values, along with funding to developers for the acquisition, development, and construction of real estate, or ADC Arrangements, that are recorded as equity investments (dollars in thousands):



		Ownership Interest at	Carrying Value at
Lessee/Equity Investee	Co-owner	March 31, 2016	March 31, 2016		December 31, 2015
Net Lease:
C1000 Logistiek Vastgoed B.V. ^{(a) (b)}	WPC	85%	$	61,040	$	59,629
U-Haul Moving Partners, Inc. and Mercury Partners, LP ^(c)	WPC	12%	38,883		39,309
Bank Pekao S.A. ^{(a) (c)}	CPA^®:18 – Global	50%	26,492		25,785
BPS Nevada, LLC ^{(c) (d)}	Third Party	15%	21,960		22,007
State Farm ^(c)	CPA^®:18 – Global	50%	18,270		18,587
Apply Sørco AS ^(a)	CPA^®:18 – Global	49%	16,203		15,170
Berry Plastics Corporation ^(c)	WPC	50%	15,596		16,094
Hellweg Die Prof-Baumärkte GmbH & Co. KG (referred to as Hellweg 2) ^{(a) (c)}	WPC	37%	12,723		12,212
Tesco plc ^{(a) (c)}	WPC	49%	12,099		11,849
Agrokor d.d. (referred to as Agrokor 5) ^{(a) (c)}	CPA^®:18 – Global	20%	8,069		7,858
Eroski Sociedad Cooperativa – Mallorca ^(a)	WPC	30%	7,187		6,790
Dick’s Sporting Goods, Inc. ^(c)	WPC	45%	4,827		5,055
			243,349		240,345
Self-Storage:
Madison Storage NYC, LLC and Veritas Group IX-NYC, LLC ^{(c) (e)}	Third Party	85%	15,134		16,060
			15,134		16,060
All Other:
Shelborne Property Associates, LLC ^{(c) (d) (f)}	Third Party	33%	145,401		148,121
IDL Wheel Tenant, LLC ^{(c) (d) (f)}	Third Party	N/A	43,215		44,387
BG LLH, LLC ^{(c) (d)}	Third Party	7%	38,600		37,720
BPS Nevada, LLC - Preferred Equity ^{(c) (g)}	Third Party	N/A	27,500		27,514
			254,716		257,742
			$	513,199	$	514,147

__________


(a)	The carrying value of this investment is affected by the impact of fluctuations in the exchange rate of the applicable foreign currency.

(b)

This investment represents a tenancy-in-common interest, whereby the property is encumbered by debt for which we are jointly and severally liable. For this investment, the co-obligor is WPC and the amount due under the arrangement was approximately $75.0 million at March 31, 2016. Of this amount, $63.7 million represents the amount we agreed to pay and is included within the carrying value of this investment at March 31, 2016.


(c)	This investment is a VIE.


(d)	This investment is subject to the hypothetical liquidation at book value model.


(e)	The carrying value of this investment includes our 45% equity interest as well as a 40% indirect economic interest based upon certain contractual arrangements with our partner in this entity that enable or could require us to purchase their interest. On April 11, 2016 we purchased the remaining 15% equity interest in this investment.


(f)	Represents a domestic ADC Arrangement. There was no unfunded balance on the loan related to this investment at March 31, 2016.


(g)	This investment represents a preferred equity interest, which provides us with preferred rate of return between 8%-12% during 2015, and 12% during 2016 and thereafter until November 19, 2019, the date on which the preferred equity interest is redeemable.

The following table presents Equity in earnings in equity method investments in real estate, which represents our proportionate share of the income or losses of these investments, as well as amortization of basis differences related to purchase accounting adjustments (in thousands):



	Three Months Ended March 31,
	2016			2015
Equity Earnings from Equity Investments:
Net Lease	$	3,552		$	3,717
Self-Storage	(394		)	(439		)
All Other	262			(8		)
	3,420			3,270
Amortization of Basis Differences on Equity Investments:
Net Lease	(820		)	196
Self-Storage	(39		)	(39		)
All Other	(389		)	(212		)
	(1,248		)	(55		)
Equity in earnings of equity method investments in real estate	$	2,172		$	3,215