XML 40 R18.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Noncontrolling Interests | 12 Months Ended
--- | ---
Dec. 31, 2021
Noncontrolling Interest [Abstract] |
Noncontrolling Interests | Noncontrolling InterestsThere are four entities with noncontrolling interests that we consolidate, including an operating partnership, Realty Income, L.P., two development joint ventures, one acquired in May 2021, one acquired in December 2020, and a joint venture acquired in 2019. From time to time, we complete the acquisitions of assets in by issuing additional common partnership units in Realty Income, L.P. as consideration for the acquisitions. In November 2021, we issued 300,604 common partnership units in Realty Income, L.P. in connection with the acquisition of seven properties and recorded $20.4 million of non-controlling interests. In December 2021, we issued 240,586 common partnership units in Realty Income, L.P. in connection with the acquisition of one property and recorded $16.6 million of non-controlling interests. In addition, during November 2021 we issued 56,400 of common partnership units in Realty Income, L.P. in exchange for VEREIT OP units in connection with our merger with VEREIT and recorded noncontrolling interests of $1.8 million. At December 31, 2021, outstanding common partnership units in Realty Income, L.P. represent 4.2% ownership interest in Realty Income L.P. We hold the remaining 95.8% interest and consolidate the entity. None of our common partnership units have voting rights. Common partnership units are entitled to monthly distributions equal to the amount paid to common stockholders of Realty Income, and are redeemable in cash or Realty Income common stock, at our option, and at a conversion ratio of 1.02934 due to the Orion Divestiture, subject to certain exceptions. Prior to the Orion Divestiture, the conversion ratio was one to one. These issuances with redemption provisions that permit the issuer to settle in either cash or common stock, at the option of the issuer, were evaluated to determine whether temporary or permanent equity classification on the balance sheet was appropriate. We determined that the units meet the requirements to qualify for presentation as permanent equity. In May 2021 and December 2020, we completed the respective acquisition of a development property by acquiring a controlling interest in a joint venture. We are the managing member of these two joint ventures, and possess the ability to control the business and manage the affairs of these entities. At December 31, 2021, we and our subsidiaries held an 72.4% interest in the joint venture established in May 2021 and an 94.5% interest in the joint venture established in December 2020. In December 2019, we completed the acquisition of nine properties by acquiring a controlling interest in a joint venture. We are the managing member of this joint venture, and possess the ability to control the business and manage the affairs of this entity. At December 31, 2021, we and our subsidiaries held an 89.9% interest, and consolidated this entity in our consolidated financial statements. The following table represents the change in the carrying value of all noncontrolling interests through December 31, 2021 (in thousands):
|  | Realty Income, L.P. units (1) |  | Other Noncontrolling Interests |  | Total
Carrying value at December 31, 2019 |  | $ | 24,596 |  |  | $ | 5,106 |  |  | $ | 29,702 |
Reallocation of equity |  | (47) |  |  | — |  |  | (47) |
Additions to noncontrolling interest |  | — |  |  | 3,168 |  |  | 3,168 |
Distributions |  | (1,297) |  |  | (299) |  |  | (1,596) |
Allocation of net income |  | 848 |  |  | 172 |  |  | 1,020 |
Carrying value at December 31, 2020 |  | $ | 24,100 |  |  | $ | 8,147 |  |  | $ | 32,247 |
Contributions |  | 36,975 |  |  | 6,415 |  |  | 43,390 |
Issued in merger |  | 3,160 |  |  | — |  |  | 3,160 |
Orion divestiture |  | (1,352) |  |  | — |  |  | (1,352) |
Reallocation of equity |  | (42) |  |  | — |  |  | (42) |
Distributions |  | (1,574) |  |  | (294) |  |  | (1,868) |
Allocation of net income |  | 1,149 |  |  | 142 |  |  | 1,291 |
Carrying value at December 31, 2021 |  | $ | 62,416 |  |  | $ | 14,410 |  |  | $ | 76,826 |
(1) 242,007 units were issued on March 30, 2018, 131,790 units were issued on April 30, 2018, 89,322 units were issued on March 28, 2019, 56,400 units were issued on November 1, 2021, 300,604 units were issued on November 30, 2021, and 240,586 units were issued on December 30, 2021. 1,060,709 units remained outstanding as of December 31, 2021. At December 31, 2021 and 2020, respectively, Realty Income, L.P. and certain of our joint venture investments were considered variable interest entities, or VIEs, in which we were deemed the primary beneficiary based on our controlling financial interests. Below is a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets at December 31, 2021 and 2020 (in thousands):
|  | December 31, 2021 |  | December 31, 2020
Net real estate |  | $ | 688,229 |  |  | $ | 635,963 |
Total assets |  | $ | 795,670 |  |  | $ | 723,668 |
Total liabilities |  | $ | 57,057 |  |  | $ | 47,962 |

X
- Definition The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 + Details
Name: | us-gaap_MinorityInterestDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_NoncontrollingInterestAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration