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Real Estate, Operating Real Estate, and Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2017

Operating real estate, which consists of our wholly owned domestic self-storage operations and a majority ownership in one hotel, at cost, is summarized as follows (in thousands):



	December 31,
	2017			2016
Land	$	90,042		$	55,645
Buildings and improvements	250,730			203,326
Less: Accumulated depreciation	(26,087		)	(18,876		)
	$	314,685		$	240,095

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,
	2017			2016
Land	$	567,113		$	563,050
Buildings and improvements	2,200,901			2,182,374
Real estate under construction	4,597			—
Less: Accumulated depreciation	(354,668		)	(280,657		)
	$	2,417,943		$	2,464,767

Schedule of Future Minimum Rental Payments for Operating Leases

Scheduled future minimum rents, exclusive of renewals, expenses paid by tenants, and future CPI-based adjustments, under non-cancelable operating leases at December 31, 2017 are as follows (in thousands):



Years Ending December 31,	Total
2018	$	283,901
2019	285,026
2020	287,210
2021	289,060
2022	288,150
Thereafter	2,231,027
Total	$	3,664,374

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following tables present a summary of assets acquired and liabilities assumed, and revenues and earnings thereon since the date of acquisition through December 31, 2016 (in thousands):



	Madison Storage NYC, LLC and Veritas Group IX-NYC, LLC
Cash consideration	$	11,363
Assets acquired at fair value:
Land	$	26,941
Buildings	109,399
In-place lease intangible assets	9,783
Other assets acquired	1,705
	147,828
Liabilities assumed at fair value:
Non-recourse debt, net	(70,578		)
Other liabilities assumed	(831		)
	(71,409		)
Total identifiable net assets	76,419
Gain on change in control of interests	(49,922		)
Carrying value of previously held equity investment	(15,134		)
	$	11,363

We determined the following purchase price allocation based on an appraisal provided by an independent valuation firm performed as of the date of acquisition (in thousands):



	Shelborne Hotel
	October 3, 2017
Assets acquired at fair value:
Land	$	34,397
Buildings and improvements	46,261
Other assets, net ^(a)	32,695
	113,353
Liabilities assumed at fair value:
Other liabilities assumed	(2,777		)
	(2,777		)
Total identifiable net assets	110,576
Noncontrolling interest contribution ^(b)	(9,529		)
Net cash received	3,829
Fair value of our majority interest in investment	104,876
Carrying value of previously held equity investment	(118,727		)
Loss on change in control of interest	$	(13,851	)

___________


(a)	Includes insurance receivables of $29.4 million related to the damage caused by Hurricane Irma, which excludes remediation costs of $1.4 million noted below.


(b)	Includes a non-cash contribution of $5.5 million from the joint-venture partner.

Schedule Of Revenues and Net Income



	Madison Storage NYC, LLC and Veritas Group IX-NYC, LLC
	April 11, 2016 through December 31, 2016
Revenues	$	7,166

Net loss ^{(a) (b)}	$	(9,021	)
Net loss attributable to CPA:17 – Global ^{(a) (b)}	$	(9,021	)

___________


(a)	Excludes a $49.9 million gain on change in control of interests.


(b)	Includes equity in losses of equity method investments in real estate of $0.4 million.

Business Acquisition, Pro Forma Information

The pro forma financial information is not necessarily indicative of what the actual results would have been had the acquisition actually occurred on January 1, 2015, nor does it purport to represent the results of operations for future periods.

(In thousands, except per share data)



	Years Ended December 31,
	2016			2015
Pro forma total revenues	$	442,972		$	437,295

Pro forma net income ^(a)	$	184,487		$	165,489
Pro forma net income attributable to noncontrolling interests	(38,863		)	(39,915		)
Pro forma net income attributable to CPA:17 – Global	$	145,624		$	125,574
Pro forma basic and diluted weighted-average shares outstanding	342,147,444			334,468,362
Pro-forma basic and diluted income per share	$	0.43		$	0.38

___________

(a) Pro forma net income for 2015 includes a gain on change in control of interests of $49.9 million and transaction costs of $3.7 million as if they were recognized on January 1, 2015.

Disclosure of Long Lived Assets Held-for-sale

Below is a summary of our properties held for sale (in thousands):



	December 31,
	2017		2016
Real estate, net	$	—	$	14,850
Assets held for sale	$	—	$	14,850

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 in the consolidated financial statements (in thousands):



	Years Ended December 31,
	2017			2016
Beginning balance	$	17,749		$	25,424
Reductions due to dispositions	(2,038		)	(10,541		)
Accretion expense ^(a)	991			1,292
Foreign currency translation adjustments and other	230			(314		)
Additions	—			1,888
Ending balance	$	16,932		$	17,749

__________


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