Real Estate (Tables)

12 Months Ended

Dec. 31, 2018

Depreciation—Real estate held for investment, other than land, are depreciated on a straight-line basis over the estimated useful lives of the assets, as follows:



Real Estate Assets		Term
Building (fee interest)		5 to 51 years
Building leasehold interests		Lesser of remaining term of the lease or remaining life of the building
Building improvements		Lesser of useful life or remaining life of the building
Land improvements		6 to 20 years
Tenant improvements		Lesser of useful life or remaining term of the lease
Furniture, fixtures and equipment		3 to 20 years

The Company's real estate held for investment was as follows:



(In thousands)	December 31, 2018			December 31, 2017
Land	$	1,950,412		$	2,011,794
Buildings and improvements	11,895,642			12,403,794
Tenant improvements	163,397			134,709
Furniture, fixtures and equipment	389,969			383,855
Construction in progress	155,511			108,403
	14,554,931			15,042,555
Less: Accumulated depreciation	(935,917		)	(578,297		)
Real estate assets, net	$	13,619,014		$	14,464,258

Schedule of Proceeds From Sales of Real Estate

Results from sales of real estate were as follows:



	Year Ended December 31,
(In thousands)	2018		2017		2016
Proceeds from sales of real estate	$	864,347	$	1,607,806	$	390,943
Gain on sale of real estate	167,231		137,370		73,616

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the Company's real estate acquisitions, excluding real estate acquired as part of business combinations discussed in Note 3.



($ in thousands)						Purchase Price Allocation ⁽¹⁾
	Acquisition Date	Property Type and Location	Number of Buildings	Purchase Price ⁽¹⁾		Land and Improvements		Building and Improvements		Lease Intangible Assets		Lease Intangible Liabilities
Year Ended December 31, 2018
Asset Acquisitions⁽²⁾
	September	Healthcare—United Kingdom⁽³⁾	1	$	24,444	$	10,506	$	12,458	$	1,480	$	—
	November	Office and Industrial—France	220	478,844		125,949		314,661		38,234		—
	Various	Industrial—Various in U.S.⁽⁴⁾	40	569,442		131,334		412,900		30,183		(4,975		)
				$	1,072,730	$	267,789	$	740,019	$	69,897	$	(4,975	)
Year Ended Ended December 31, 2017
Asset Acquisitions
	January	Industrial—Spain	2	$	10,374	$	3,855	$	5,564	$	955	$	—
	June	Office—Los Angeles, CA ⁽⁵⁾	1	455,699		93,577		314,590		50,518		(2,986		)
	Various	Industrial—Various in U.S.	55	636,690		137,005		472,747		31,512		(4,574		)
				$	1,102,763	$	234,437	$	792,901	$	82,985	$	(7,560	)



($ in thousands)						Purchase Price Allocation ⁽¹⁾
	Acquisition Date	Property Type and Location	Number of Buildings	Purchase Price ⁽¹⁾		Land and Improvements		Building and Improvements		Lease Intangible Assets		Lease Intangible Liabilities
Year Ended Ended December 31, 2016
Business Combinations ⁽⁶⁾
	January	Industrial—Spain	23	$	94,403	$	33,265	$	56,585	$	5,318	$	(765	)
	April	Industrial—Massachusetts, U.S.	1	34,900		5,235		27,731		1,934		—
	May	Office—France	1	18,203		14,150		3,815		388		(150		)
	Various	Industrial—Various in U.S.	18	201,635		36,974		151,689		16,063		(3,091		)
Asset Acquisitions
	Various	Industrial—Various in U.S.	12	113,200		20,749		84,724		8,398		(671		)
				$	462,341	$	110,373	$	324,544	$	32,101	$	(4,677	)

__________


⁽¹⁾	Dollar amounts of purchase price and allocation to assets acquired and liabilities assumed are translated using foreign exchange rates as of the respective dates of acquisition, where applicable.


⁽²⁾	Useful life of real estate acquired in 2018 is 5 to 51 years for buildings, 6 to 14 years for site improvements and 4 months (based on remaining lease terms) to 10 years for both tenant improvements and lease intangibles.


⁽³⁾	Net leased senior housing acquired pursuant to a purchase option under the Company's development facility to the healthcare operator at a purchase price equivalent to the outstanding loan balance.


⁽⁴⁾	Includes acquisition of $13.1 million of land for co-development with operating partners.


⁽⁵⁾	In September 2017, 90% of equity in the property holding entity was syndicated to third party investors. The new equity partners were granted certain participation rights in the business, resulting in a deconsolidation of the investment. The interest retained by the Company is reflected as an equity method investment.

Schedule of Components of Property Operating Income

The components of property operating income were as follows:



	Year Ended December 31,
(In thousands)	2018		2017		2016
Rental income	$	623,785	$	672,292	$	276,404
Tenant reimbursements	143,759		138,433		65,657
Resident fee income ⁽¹⁾	275,911		286,818		—
Hotel operating income	1,204,285		1,016,294		29,021
	$	2,247,740	$	2,113,837	$	371,082

__________


⁽¹⁾	Healthcare properties that operate through management agreements with independent third-party operators through structures permitted by the REIT Investment Diversification and Empowerment Act of 2007 (“RIDEA”) allow us, through a TRS, to have direct exposure to resident fee income and incur customary related operating expenses.

Schedule Of Future Minimum Rental Payments Receivable For Operating Leases

The Company has operating leases with tenants that expire at various dates through 2061. Future contractual minimum rental payments to be received under noncancelable operating leases for real estate held for investment as of December 31, 2018 are as follows.



Year Ending December 31,	(In thousands)
2019	$	495,765
2020	464,229
2021	413,416
2022	372,432
2023	327,836
2024 and thereafter	1,123,879
Total ⁽¹⁾	$	3,197,557

__________


⁽¹⁾	Excludes hotel operating income and rents from short-term leases.

Schedule of Future Minimum Rental Payments

At December 31, 2018, future minimum rental payments on noncancelable ground leases, excluding any contingent rent payments, on real estate held for investment were as follows.



Year Ending December 31,	(In thousands)
2019	$	5,236
2020	5,318
2021	5,487
2022	5,877
2023	5,821
2024 and thereafter	89,276
Total	$	117,015

Future contractual minimum rental payments for office leases at December 31, 2018 are as follows:



Year Ending December 31,	(In thousands)
2019	$	9,380
2020	9,007
2021	8,617
2022	7,602
2023	7,045
2024 and thereafter	29,615
Total	$	71,266