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Investments and Dispositions | 6 Months Ended
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Jun. 30, 2017
Investments [Abstract] |
Investments | Investments and Dispositions The Company's investment spending during the six months ended June 30, 2017 totaled $1.2 billion, and included investments in each of its four operating segments. Entertainment investment spending during the six months ended June 30, 2017 totaled $114.2 million, including spending on build-to-suit development and redevelopment of megaplex theatres, entertainment retail centers and family entertainment centers, as well as $47.9 million in acquisitions of three megaplex theatres. Education investment spending during the six months ended June 30, 2017 totaled $182.2 million, including spending on build-to-suit development and redevelopment of public charter schools, early education centers and private schools, as well as $27.0 million in acquisitions of seven early education centers and one public charter school and an investment of $70.5 million in mortgage notes receivable. Recreation investment spending during the six months ended June 30, 2017 totaled $866.1 million, including the transaction with CNL Lifestyle Properties Inc. (CNL Lifestyle) and funds affiliated with Och-Ziff Real Estate (OZRE) valued at $730.8 million discussed below. Additionally, included in recreation investment spending was build-to-suit development of golf entertainment complexes and attractions, redevelopment of ski areas, $34.2 million in acquisitions of three other recreation facilities, and an investment of $10.5 million in a mortgage note secured by one other recreation facility. On April 6, 2017, the Company completed a transaction with CNL Lifestyle and OZRE. The Company acquired the Northstar California Resort, 15 attraction properties (waterparks and amusement parks), five small family entertainment centers and certain related working capital for aggregate consideration valued at $479.8 million, including final purchase price adjustments. Additionally, the Company provided $251.0 million of secured debt financing to OZRE for its purchase of 14 CNL Lifestyle ski properties valued at $374.5 million. Subsequent to the transaction, the Company sold the five family entertainment centers for approximately $6.8 million and one waterpark for approximately $2.5 million. No gain or loss was recognized on these sales. The secured debt financing with OZRE has an initial term of five years with three 2.5 year options to extend. The note bears interest fixed at 8.5%. The Company received a $3.0 million origination fee upon closing that will be recognized using the effective interest method. The Company assumed long-term, triple-net leases on the Northstar California Resort and three of the attractions properties and entered into new long-term, triple-net lease agreements on the remaining attractions properties at closing. Additionally, the Company assumed ground lease agreements on nine of the properties. The Company’s aggregate investment in this transaction was $730.8 million and was funded with $657.5 million of the Company’s common shares, consisting of 8,851,264 newly issued registered common shares valued at $74.28 per share, $61.2 million of cash and assumed working capital liabilities (net of assumed accounts receivable) of $12.1 million. CNL Lifestyle subsequently distributed the common shares to its stockholders on April 20, 2017. The Company's portion of the cash purchase price was funded with borrowings under its unsecured revolving credit facility. This transaction was previously announced as a business combination and, accordingly, related expenses were recognized as transaction costs through December 31, 2016. In connection with the adoption of ASU No. 2017-01 on January 1, 2017, this transaction was determined to be an asset acquisition. As such, transaction costs related to this asset acquisition incurred in 2017 have been capitalized. The aggregate investment of $730.8 million in this transaction was recorded as follows (in thousands):
|  | April 6, 2017 |
Rental properties, net |  | $ | 481,006 |
Mortgage notes and related accrued interest receivable |  | 251,038 |
Tradenames (included in other assets) |  | 6,355 |
Below market leases (included in accounts payable and accrued liabilities) |  | (7,611 | )
Total investment |  | $ | 730,788 |
Other investment spending during the six months ended June 30, 2017 totaled $0.8 million, and was related to the Adelaar casino and resort project in Sullivan County, New York. During the six months ended June 30, 2017, the Company completed the sale of four entertainment properties for net proceeds totaling $72.3 million. In connection with these sales, the Company recognized a gain on sale of $19.4 million. During the six months ended June 30, 2017, pursuant to tenant purchase options, the Company completed the sale of four public charter schools located in Colorado and Arizona for net proceeds totaling $39.1 million. In connection with these sales, the Company recognized a gain on sale of $6.2 million. Additionally, the Company completed the sale of two education facilities for net proceeds of $9.8 million. In connection with these sales, the Company recognized a gain on sale of $1.9 million. During the six months ended June 30, 2017, the Company received a partial prepayment of $4.0 million on one mortgage note receivable that is secured by the observation deck of the John Hancock building in Chicago, Illinois. In connection with the partial prepayment of this note, the Company received a prepayment fee of $800.0 thousand, which is being recognized over the term of the remaining note using the effective interest method.

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- Definition This element may be used to capture disclosure pertaining to acquisitions and dispositions. For acquisitions, description of business combinations or asset acquisitions completed during the period, including background, timing, and allocation of acquisition costs. For dispositions, disclosure includes details related to the disposal, manner and timing of disposal, the gain or loss recognized in the income statement and the income statement caption that includes that gain or loss. + References No definition available. + Details
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- References No definition available. + Details
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