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Real Estate | 9 Months Ended
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Sep. 30, 2018
Real Estate [Abstract] |
Real Estate | Real Estate The Company's real estate assets were comprised of the following ($ in thousands):
| Net Lease(1) |  | Operating Properties |  | Total
As of September 30, 2018 |  |  |  |  |
Land, at cost | $ | 334,818 |  |  | $ | 162,959 |  |  | $ | 497,777 |
Buildings and improvements, at cost | 1,511,844 |  |  | 227,672 |  |  | 1,739,516 |
Less: accumulated depreciation | (302,887 | ) |  | (40,617 | ) |  | (343,504 | )
Real estate, net | 1,543,775 |  |  | 350,014 |  |  | 1,893,789 |
Real estate available and held for sale (2) | 7,289 |  |  | 54,260 |  |  | 61,549 |
Total real estate | $ | 1,551,064 |  |  | $ | 404,274 |  |  | $ | 1,955,338 |
As of December 31, 2017 |  |  |  |  |
Land, at cost | $ | 219,092 |  |  | $ | 203,278 |  |  | $ | 422,370 |
Buildings and improvements, at cost | 888,959 |  |  | 318,107 |  |  | 1,207,066 |
Less: accumulated depreciation | (292,268 | ) |  | (55,137 | ) |  | (347,405 | )
Real estate, net | 815,783 |  |  | 466,248 |  |  | 1,282,031 |
Real estate available and held for sale (2) | — |  |  | 68,588 |  |  | 68,588 |
Total real estate | $ | 815,783 |  |  | $ | 534,836 |  |  | $ | 1,350,619 |
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(1) | On June 30, 2018, the Company consolidated the Net Lease Venture (refer to Note 7) and recorded $743.6 million to "Real estate, net" on the Company's consolidated balance sheet.
(2) | As of September 30, 2018 and December 31, 2017, the Company had $29.5 million and $48.5 million, respectively, of residential condominiums available for sale in its operating properties portfolio.
Disposition of Ground Lease Business—In April 2017, institutional investors acquired a controlling interest in the Company's ground lease business through the merger of a Company subsidiary and related transactions (the "Acquisition Transactions"). Ground leases generally represent ownership of the land underlying commercial real estate projects that is triple net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon ("Ground Lease"). The Company's Ground Lease business was a component of the Company's net lease segment and consisted of 12 properties subject to long-term net leases including seven Ground Leases and one master lease (covering five properties). The acquiring entity was a newly formed unconsolidated entity named Safety, Income & Growth Inc. ("SAFE"). The carrying value of the Company's Ground Lease assets was approximately $161.1 million. Shortly before the Acquisition Transactions, the Company completed the $227.0 million 2017 Secured Financing on its Ground Lease assets (refer to Note 10). The Company received all of the proceeds of the 2017 Secured Financing. The Company received an additional $113.0 million of proceeds in the Acquisition Transactions, including $55.5 million that the Company contributed to SAFE in its initial capitalization. As a result of the Acquisition Transactions, the Company deconsolidated the 12 properties and the associated 2017 Secured Financing. The Company accounts for its investment in SAFE as an equity method investment (refer to Note 7). The Company accounted for this transaction as an in substance sale of real estate and recognized a gain of $123.4 million, reflecting the aggregate gain less the fair value of the Company's retained interest in SAFE. As a result of the adoption of ASU 2017-05 (refer to Note 3), on January 1, 2018, the Company recorded an increase to retained earnings of $55.5 million, bringing the Company's aggregate gain on the sale of its Ground Lease business to approximately $178.9 million. Discontinued Operations—The transactions described above involving the Company's Ground Lease business qualified for discontinued operations and the following table summarizes income from discontinued operations for the nine months ended September 30, 2017 ($ in thousands)(1)(2):
Revenues |  | $ | 5,922 |
Expenses |  | (1,491 | )
Income from sales of real estate |  | 508 |
Income from discontinued operations |  | $ | 4,939 |
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(1) | The transactions closed on April 14, 2017. Revenues primarily consisted of operating lease income and expenses primarily consisted of depreciation and amortization and real estate expense.
(2) | For the nine months ended September 30, 2017, cash flows provided by operating activities and cash flows used in investing activities from discontinued operations was $5.7 million and $0.5 million, respectively.
Other Dispositions—The following table presents the net proceeds and income recognized for properties sold, by property type ($ in millions):
|  | Nine Months Ended September 30,
|  | 2018 |  | 2017
Operating Properties |  |  |  |
Proceeds(1) |  | $ | 228.7 |  |  | $ | 21.8 |
Income from sales of real estate(1) |  | 54.5 |  |  | 3.3 |
Net Lease |  |  |  |
Proceeds(2) |  | $ | 38.4 |  |  | $ | 61.7 |
Income from sales of real estate(2) |  | 24.9 |  |  | 25.0 |
Total |  |  |  |
Proceeds |  | $ | 267.1 |  |  | $ | 83.5 |
Income from sales of real estate |  | 79.4 |  |  | 28.3 |
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(1) | During the nine months ended September 30, 2018, the Company sold six operating properties and recognized $54.5 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations, of which $9.8 million was attributable to a noncontrolling interest at one of the properties.
(2) | During the nine months ended September 30, 2018, the Company sold three net lease assets and recognized $24.9 million of gains in "Income from sales of real estate" in the Company's consolidated statements of operations.
In the third quarter 2017, in conjunction with the modification of two master leases, the Company exchanged real property with the tenant. The fair value of the property exchanged exceeded the Company's cost basis by approximately $1.5 million which will be deferred and amortized to "Operating lease income" in the Company's consolidated statements of operations over the remaining master lease terms. Real Estate Available and Held for Sale—During the nine months ended September 30, 2018, the Company transferred one net lease asset and two operating properties with an aggregate carrying value of $30.2 million to held for sale due to executed contracts with third parties. During the nine months ended September 30, 2017, the Company transferred one net lease asset with a carrying value of $0.9 million to held for sale. Impairments—During the nine months ended September 30, 2018, the Company recorded aggregate impairments of $9.9 million resulting from the exercise of a below-market lease renewal option related to a net lease asset, the sale of a commercial operating property and residential condominium units contracted for sale. During the nine months ended September 30, 2017, the Company recorded an impairment of $4.4 million on a real estate asset held for sale due to shifting demand in the local condominium market along with a change in the Company's exit strategy and an impairment of $0.6 million in connection with the sale of an outparcel located at a commercial operating property. Tenant Reimbursements—The Company receives reimbursements from tenants for certain facility operating expenses including common area costs, insurance, utilities and real estate taxes. Tenant expense reimbursements were $5.7 million and $16.3 million for the three and nine months ended September 30, 2018, respectively. Tenant expense reimbursements were $6.1 million and $17.0 million for the three and nine months ended September 30, 2017, respectively. These amounts are included in "Operating lease income" in the Company's consolidated statements of operations. Allowance for Doubtful Accounts—As of September 30, 2018 and December 31, 2017, the allowance for doubtful accounts related to real estate tenant receivables was $1.2 million and $1.3 million, respectively, and the allowance for doubtful accounts related to deferred operating lease income was $1.7 million and $1.3 million as of September 30, 2018 and December 31, 2017, respectively. These amounts are included in "Accrued interest and operating lease income receivable, net" and "Deferred operating lease income receivable, net," respectively, on the Company's consolidated balance sheets.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 + Details
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