XML 47 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
(a)
Includes a $15.7 million write-off of a below-market rent lease liabilities pertaining to our KBR, Inc. properties that was recognized in Rental income as a result of a lease modification during the six months ended June 30, 2017 (Note 13). In addition, as a result of a lease termination, we accelerated the below-market rent lease intangible liabilities of $3.3 million that was also recognized in Rental income during the six months ended June 30, 2017.
(b)
We recognized straight-line rent adjustments of $2.4 million and $3.9 million during the three months ended June 30, 2018 and 2017, respectively, and $5.2 million and $7.2 million during the six months ended June 30, 2018 and 2017, respectively.
(c)
Includes credit losses totaling $6.2 million related to two properties classified as direct financing leases (Note 8) recognized during both the three and six months ended June 30, 2018. Includes an impairment charge of $4.5 million related to a net-leased property (Note 8) recognized during the six months ended June 30, 2017.
(d)
In April 2017, the Croatian government passed a special law assisting the restructuring of companies considered of systemic significance in Croatia. This law directly impacts our Agrokor tenant, which is currently experiencing financial distress and recently received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and the uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $6.8 million and $3.2 million during the three months ended June 30, 2018 and 2017, respectively, and $11.2 million and $4.8 million during the six months ended June 30, 2018 and 2017, respectively. In July 2018, the creditors of Agrokor reached a settlement plan to attempt to restructure the company, but as of the date of this Report, we are unable to assess the potential impact of that plan on our investment.
(e)
Amount includes the impact of adopting ASU 2017-05 (Note 2), which resulted in the recognition of $2.5 million and $4.7 million of accretion into income during the three and six months ended June 30, 2018, respectively.
(f)
Includes an impairment charge of $5.4 million related to our CMBS investments (Note 8) recognized during the six months ended June 30, 2018.
(g)
Includes an allowance for bad debt totaling $2.0 million for both the three and six months ended June 30, 2018 related to the delay in collecting our outstanding insurance receivables on our Shelborne Hotel investment (Note 4).
(h)
Included in unallocated corporate overhead are asset management fees and general and administrative expenses, as well as interest expense and other charges related to our Senior Credit Facility. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance.
The following tables present a summary of comparative results and assets for these business segments (in thousands):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Net Lease
 
 
 
 
 
 
 
Revenues (a) (b)
$
93,526

 
$
94,331

 
$
190,518

 
$
206,854

Operating expenses (c) (d)
(48,446
)
 
(37,867
)
 
(90,403
)
 
(79,175
)
Interest expense
(17,787
)
 
(18,698
)
 
(35,479
)
 
(39,349
)
Other income and (expenses), excluding interest expense
5,431

 
1,736

 
15,941

 
5,195

(Provision for) benefit from income taxes
(1,009
)
 
(316
)
 
(1,413
)
 
298

Gain on sale of real estate, net of tax
—

 
1,171

 
24

 
2,910

Net income attributable to noncontrolling interests
(3,571
)
 
(3,948
)
 
(6,686
)
 
(6,273
)
Net income attributable to CPA:17 – Global
$
28,144

 
$
36,409

 
$
72,502

 
$
90,460

Self Storage
 
 
 
 
 
 
 
Revenues
$
9,298

 
$
9,031

 
$
18,343

 
$
17,773

Operating expenses
(5,166
)
 
(6,340
)
 
(10,614
)
 
(13,539
)
Interest expense
(2,038
)
 
(1,974
)
 
(3,949
)
 
(3,977
)
Other income and (expenses), excluding interest expense
—

 
(258
)
 
—

 
(260
)
Provision for income taxes
(44
)
 
(30
)
 
(92
)
 
(62
)
Net income (loss) attributable to CPA:17 – Global
$
2,050

 
$
429

 
$
3,688

 
$
(65
)
All Other
 
 
 
 
 
 
 
Revenues (e)
$
7,002

 
$
3,151

 
$
14,247

 
$
4,891

Operating expenses (f) (g)
(6,037
)
 
(8
)
 
(15,557
)
 
(46
)
Other income and (expenses), excluding interest expense
1,137

 
187

 
1,708

 
(2,221
)
Benefit from (provision for) income taxes
26

 
(374
)
 
2,104

 
(1,024
)
Net loss attributable to noncontrolling interests
1,010

 
—

 
1,871

 
—

Net income attributable to CPA:17 – Global
$
3,138

 
$
2,956

 
$
4,373

 
$
1,600

Corporate
 
 
 
 
 
 
 
Unallocated Corporate Overhead (h)
$
(8,592
)
 
$
(2,017
)
 
$
(22,916
)
 
$
(9,397
)
Net income attributable to noncontrolling interests — Available Cash Distributions
$
(5,185
)
 
$
(6,971
)
 
$
(11,355
)
 
$
(13,781
)
Total Company
 
 
 
 
 
 
 
Revenues
$
109,826

 
$
106,513

 
$
223,108

 
$
229,518

Operating expenses
(72,966
)
 
(55,581
)
 
(140,650
)
 
(115,196
)
Interest expense
(20,801
)
 
(21,453
)
 
(41,351
)
 
(44,843
)
Other income and (expenses), excluding interest expense
12,313

 
12,190

 
20,999

 
18,218

(Provision for) benefit from income taxes
(1,071
)
 
(1,115
)
 
332

 
(1,736
)
Gain on sale of real estate, net of tax
—

 
1,171

 
24

 
2,910

Net income attributable to noncontrolling interests
(7,746
)
 
(10,919
)
 
(16,170
)
 
(20,054
)
Net income attributable to CPA:17 – Global
$
19,555

 
$
30,806

 
$
46,292

 
$
68,817
Reconciliation of Assets from Segment to Consolidated
 
Total Assets at
 
June 30, 2018
 
December 31, 2017
Net Lease
$
3,907,121

 
$
3,980,445

All Other
262,780

 
277,702

Self-Storage
240,285

 
241,438

Corporate
60,038

 
87,885

Total Company
$
4,470,224

 
$
4,587,470