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Investments in Real Estate (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Investments in Real Estate, Net

Investments in real estate, net consisted of the following ($ in thousands):

	March 31, 2019			December 31, 2018
Building and building improvements	$	9,285,485		$	8,389,864
Land and land improvements		2,090,200			1,961,977
Furniture, fixtures and equipment		204,182			182,418
Right of use asset - operating leases		45,678			—
Right of use asset - financing leases		62,130			—
Total		11,687,675			10,534,259
Accumulated depreciation		(365,619	)		(274,572	)
Investments in real estate, net	$	11,322,056		$	10,259,687

Schedule of Details of Properties Acquired

The following table provides further details of the properties acquired during the three months ended March 31, 2019 ($ in thousands):

Investment	Ownership Interest⁽¹⁾	Number of Properties		Location	Segment	Acquisition Date	Purchase Price⁽²⁾
4500 Westport Drive	100%		1	Harrisburg, PA	Industrial	Jan. 2019	$	11,975
Roman Multifamily Portfolio	100%		14	Various⁽³⁾	Multifamily	Feb. 2019		857,540
Gilbert Heritage Apartments	90%		1	Phoenix, AZ	Multifamily	Feb. 2019		60,984
Courtyard Kona	100%		1	Kailua-Kona, HI	Hotel	Mar. 2019		105,587
			17				$	1,036,086

⁽¹⁾

Certain of the investments made by the Company provide the seller or the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by the Company and any profits interest due to the other partner is reported within non-controlling interests.

⁽²⁾	Purchase price is inclusive of acquisition related costs.

⁽³⁾	The Roman Multifamily Portfolio is primarily concentrated in Riverside, CA (18% of units), Denver, CO (13%), Tampa, FL (10%), Orlando, FL (9%), Charlotte, NC (9%), Portland, OR (8%), and Dallas, TX (8%).

Schedule of Purchase Price Allocation of Properties

The following table summarizes the purchase price allocation for the properties acquired during the three months ended March 31, 2019 ($ in thousands):

	Roman Multifamily Portfolio		All Other			Total
Building and building improvements	$	714,941	$	151,401		$	866,342
Land and land improvements		110,206		17,526			127,732
Furniture, fixtures and equipment		8,538		7,364			15,902
In-place lease intangibles		23,855		2,623			26,478
Above-market lease intangibles		—		10			10
Below-market lease intangibles		—		(378	)		(378	)
Total purchase price		857,540		178,546			1,036,086
Assumed mortgage notes⁽¹⁾		237,981		53,637			291,618
Net purchase price	$	619,559	$	124,909		$	744,468

⁽¹⁾	Refer to Note 6 for additional details on the Company’s mortgage notes.

Schedule of Future Lease Payments Due Under Ground Leases

The following table presents the future lease payments due under the Company’s ground leases ($ in thousands):

	Operating Leases		Financing Leases
2019 (remaining)	$	1,059	$	2,189
2020		1,445		2,991
2021		1,481		3,081
2022		1,518		3,174
2023		1,556		3,269
2024		1,596		3,367
Thereafter		457,749		330,546
Total undiscounted future lease payments		466,404		348,617
Difference between undiscounted cash flows and discounted cash flows		434,921		288,309
Total right of use lease liability	$	31,483	$	60,308

Summary of Fixed and Variable Components of Operating leases

The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands):

	Three Months Ended March 31,
	2019		2018
Fixed ground rent expense	$	359	$	68
Variable ground rent expense		18		6
Total cash portion of ground rent expense		377		74
Non-cash ground rent expense		1,092		51
Total operating lease costs	$	1,469	$	125

Schedule of Components of Operating Lease Income from Leases

The following table details the components of operating lease income from leases in which the Company is the lessor ($ in thousands):

	Three Months Ended March 31,
	2019		2018
Fixed lease payments	$	188,855	$	78,513
Variable lease payments		23,342		9,048
Rental revenue	$	212,197	$	87,561