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

6 Months Ended

Jun. 30, 2020

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



	June 30, 2020			December 31, 2019
Land	$	193,353		$	196,693
Buildings and improvements	992,285			1,003,952
Less: Accumulated depreciation	(148,173		)	(135,922		)
	$	1,037,465		$	1,064,723

Operating real estate, which consists of our self-storage and student housing properties (not subject to net lease agreements), is summarized as follows (in thousands):



	June 30, 2020			December 31, 2019
Land	$	77,649		$	78,240
Buildings and improvements	427,211			434,245
Less: Accumulated depreciation	(64,489		)	(57,237		)
	$	440,371		$	455,248

Schedule of 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 operations are as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Lease revenues — net-leased
Lease income — fixed ^(a)	$	21,462	$	25,414	$	39,083	$	50,801
Lease income — variable ^(b)	4,095		3,757		7,877		8,318
Total operating lease income ^(c)	$	25,557	$	29,171	$	46,960	$	59,119

Lease revenues — operating real estate
Lease income — fixed	$	16,013	$	16,639	$	33,315	$	33,280
Lease income — variable ^(d)	495		658		1,136		1,282
Total operating lease income	$	16,508	$	17,297	$	34,451	$	34,562

___________

(a)

The six months ended June 30, 2020 includes a $7.0 million write-off of straight-line rent receivables based on our current assessment of less than 75% likelihood of collecting all remaining contractual rent on certain net lease hotels. For both the three and six months ended June 30, 2020, approximately $2.6 million of rent for these properties was not collected, and thus not recognized (Note 2).


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

(c)

Excludes interest income from direct financing leases of $0.6 million and $0.9 million for the three months ended June 30, 2020 and 2019, respectively, and $1.6 million and $1.9 million for the six months ended June 30, 2020 and 2019, respectively (Note 5). Approximately $0.4 million of rent for one of our tenants was not collected during the three and six months ended June 30, 2020, and thus not recognized (Note 2). Interest income from direct financing leases is included in Lease revenues — net-leased in the condensed consolidated statements of operations.

(d)

Primarily comprised of late fees and administrative fees revenues

Schedule of real estate under construction

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



	Six Months Ended June 30, 2020
Beginning balance	$	235,751
Capitalized funds	82,786
Placed into service	(6,065		)
Capitalized interest	4,232
Foreign currency translation adjustments	(1,212		)
Ending balance	$	315,492