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Real Estate, Operating Real Estate, Real Estate Under Construction, and Equity Investment in Real Estate (Tables)

3 Months Ended

Mar. 31, 2019

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



	March 31, 2019			December 31, 2018
Land	$	194,592		$	195,275
Buildings and improvements	1,005,915			1,015,501
Less: Accumulated depreciation	(118,667		)	(112,061		)
	$	1,081,840		$	1,098,715

Operating real estate, which consists of our self-storage, student housing, and multi-family residential properties, is summarized as follows (in thousands):



	March 31, 2019			December 31, 2018
Land	$	78,168		$	77,984
Buildings and improvements	428,903			425,165
Less: Accumulated depreciation	(45,800		)	(41,969		)
	$	461,271		$	461,180

Operating Lease Income

Lease income related to operating leases recognized and included within Lease revenues — net-leased and Lease revenues — operating real estate in the condensed consolidated statements of income is as follows (in thousands):



	Three Months Ended March 31, 2019
Lease income — fixed	$	42,028
Lease income — variable ^(a)	5,186
Total operating lease income ^(b)	$	47,214

___________


(a)	Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.


(b)	Excludes $1.0 million of interest income from direct financing leases that is included in Lease revenues — net-leased in the condensed consolidated statements of income.

Scheduled Future Lease Payments

Scheduled future lease payments (exclusive of renewal options that are determined to be reasonably certain of exercise, expenses paid by tenants, percentage rents, and future CPI-based adjustments) under non-cancelable operating leases at March 31, 2019 are as follows (in thousands):



Years Ending December 31,	Total
2019 (remainder)	$	72,365
2020	95,113
2021	94,844
2022	95,054
2023	88,505
Thereafter	576,362
Total	$	1,022,243

Scheduled Future Lease Payments - Before Adoption



Years Ending December 31,	Total
2019	$	101,618
2020	101,413
2021	101,261
2022	101,535
2023	94,502
Thereafter	590,636
Total	$	1,090,965

Lease Cost

Certain information related to the total lease cost for operating leases for the three months ended March 31, 2019 is as follows (in thousands):



	Three Months Ended March 31, 2019
Fixed lease cost	$	278
Total lease cost	$	278

Supplemental Balance Sheet

Supplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands):



	Location on Condensed Consolidated Balance Sheets	March 31, 2019
Operating ROU assets — ground leases	Right-of-use and other intangible assets	$	36,226

Operating lease liabilities — ground leases	Accounts payable, accrued expenses and other liabilities	$	9,409

Weighted-average remaining lease term — operating leases		47.2 years
Weighted-average discount rate — operating leases		7.0		%

Undiscounted Cash Flows

A reconciliation of the undiscounted cash flows for operating leases recorded on the condensed consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of March 31, 2019 is as follows (in thousands):



Years Ending December 31,	Total
2019 (remainder)	$	614
2020	742
2021	742
2022	742
2023	742
Thereafter	28,835
Total lease payments	32,417
Less: amount of lease payments representing interest	(23,008		)
Present value of future lease payments/lease obligations	$	9,409

Real Estate Under Construction

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



	Three Months Ended March 31, 2019
Beginning balance	$	152,106
Capitalized funds	30,142
Foreign currency translation adjustments	(2,087		)
Capitalized interest	1,562
Placed into service	(1,165		)
Ending balance	$	180,558

Schedule of Assets-held for Sale

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



	March 31, 2019		December 31, 2018
Operating real estate — Land, buildings and improvements	$	—	$	26,277
In-place lease intangible assets	—		1,090
Accumulated depreciation and amortization	—		(3,759		)
Assets held for sale, net	$	—	$	23,608

Non-recourse mortgages, net, including debt attributable to Assets held for sale	$	—	$	24,250