Segment Reporting

We operate in three reportable business segments: Net Lease, Self Storage, and Multi-Family. Our Net Lease segment includes our investments in net-leased properties, whether they are accounted for as operating leases or direct financing leases. Our Self Storage segment is comprised of our investments in self-storage properties. Our Multi-Family segment is comprised of our investments in multi-family residential properties and student-housing developments. In addition, we have an All Other category that includes our notes receivable investments. The following tables present a summary of comparative results and assets for these business segments (in thousands):



	Three Months Ended March 31,
	2018			2017
Net Lease
Revenues ^(a)	$	32,999		$	27,370
Operating expenses ^{(b) (c)}	(19,119		)	(16,035		)
Interest expense	(8,858		)	(6,993		)
Other income and (expenses), excluding interest expense	4,351			205
Benefit from income taxes	145			66
Net income attributable to noncontrolling interests	(94		)	(239		)
Net income attributable to CPA:18 – Global	$	9,424		$	4,374
Self Storage
Revenues	$	13,966		$	13,194
Operating expenses	(9,349		)	(12,090		)
Interest expense	(3,094		)	(3,006		)
Other income and (expenses), excluding interest expense ^(d)	(479		)	(99		)
Provision for income taxes	(27		)	(77		)
Net income (loss) attributable to CPA:18 – Global	$	1,017		$	(2,078	)
Multi-Family
Revenues	$	5,690		$	6,167
Operating expenses	(4,162		)	(4,326		)
Interest expense	(905		)	(1,152		)
Other income and (expenses), excluding interest expense	1			1
Benefit from (provision for) income taxes	13			(27		)
Net loss (income) attributable to noncontrolling interests	8			(11		)
Net income attributable to CPA:18 – Global	$	645		$	652
All Other
Revenues	$	1,780		$	1,749
Operating expenses	(1		)	(9		)
Net income attributable to CPA:18 – Global	$	1,779		$	1,740
Corporate
Unallocated Corporate Overhead ^(e)	$	(633	)	$	(2,393	)
Net income attributable to noncontrolling interests — Available Cash Distributions	$	(1,905	)	$	(1,675	)
Total Company
Revenues	$	54,435		$	48,480
Operating expenses	(37,270		)	(36,976		)
Interest expense	(12,930		)	(11,452		)
Other income and (expenses), excluding interest expense	7,668			2,563
Benefit from (provision for) income taxes	415			(70		)
Net income attributable to noncontrolling interests	(1,991		)	(1,925		)
Net income attributable to CPA:18 – Global	$	10,327		$	620



	Total Assets
	March 31, 2018		December 31, 2017
Net Lease	$	1,600,618	$	1,572,437
Self Storage	397,470		398,944
Multi-Family	292,707		256,875
Corporate	77,684		35,812
All Other	64,382		66,929
Total Company	$	2,432,861	$	2,330,997

__________


(a)	We recognized straight-line rent adjustments of $1.3 million and $1.0 million during the three months ended March 31, 2018 and 2017, respectively, which increased Lease revenues within our consolidated financial statements for each period.

(b)

In April 2017, the Croatian government passed a special law assisting the restructuring of companies considered of systematic significance in Croatia. This law directly impacts our Agrokor tenant, which is currently experiencing financial distress and received a credit downgrade from both Standard & Poor’s and Moody’s. As a result of the financial difficulties and uncertainty regarding future rent collections from the tenant, we recorded bad debt expense of $1.1 million and $1.0 million during the three months ended March 31, 2018 and 2017, respectively.


(c)	As a result of the financial difficulties and uncertainty regarding future rent collections from a tenant in Stavanger, Norway, we recorded bad debt expense of $0.5 million during the three months ended March 31, 2017.


(d)	Includes Equity in losses of equity method investment in real estate.


(e)	Included in unallocated corporate overhead are asset management fees and general and administrative expenses. These expenses are calculated and reported at the portfolio level and not evaluated as part of any segment’s operating performance.