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Debt Obligations, net (Tables)
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of debt obligations

The Company's debt obligations were as follows ($ in thousands):
 
Carrying Value as of
 
Stated
Interest Rates
 
Scheduled
Maturity Date
 
June 30, 2019
 
December 31, 2018
 
 
Secured credit facilities and mortgages:
 
 
 
 
 
 
 
2015 $325 million Revolving Credit Facility
$
—

 
$
—

 
LIBOR + 2.50%

(1) 
September 2020
2016 Senior Term Loan
643,500

 
646,750

 
LIBOR + 2.75%

(2) 
June 2023
Mortgages collateralized by net lease assets(3)
631,393

 
802,367

 
3.62% - 7.26%

(3) 
 
Total secured credit facilities and mortgages
1,274,893

 
1,449,117

 
 

 
 
Unsecured notes:
 
 
 
 
 
 
 
5.00% senior notes(4)
—

 
375,000

 
5.00
%
 
—
4.625% senior notes(5)
400,000

 
400,000

 
4.625
%
 
September 2020
6.50% senior notes(6)
275,000

 
275,000

 
6.50
%
 
July 2021
6.00% senior notes(7)
375,000

 
375,000

 
6.00
%
 
April 2022
5.25% senior notes(8)
400,000

 
400,000

 
5.25
%
 
September 2022
3.125% senior convertible notes(9)
287,500

 
287,500

 
3.125
%
 
September 2022
Total unsecured notes
1,737,500

 
2,112,500

 
 

 
 
Other debt obligations:

 
 
 
 
 
 
Trust preferred securities
100,000

 
100,000

 
LIBOR + 1.50%

 
October 2035
Total debt obligations
3,112,393

 
3,661,617

 
 

 
 
Debt discounts and deferred financing costs, net
(43,837
)
 
(52,531
)
 
 

 
 
Total debt obligations, net(10)
$
3,068,556

 
$
3,609,086

 
 

 
 
_______________________________________________________________________________
(1)
The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin ranging from 1.25% to 1.75%; or (ii) LIBOR subject to a margin ranging from 2.25% to 2.75%. At maturity, the Company may convert outstanding borrowings to a one year term loan which matures in quarterly installments through September 2021.
(2)
The loan bears interest at the Company's election of either: (i) a base rate, which is the greater of (a) prime, (b) federal funds plus 0.5% or (c) LIBOR plus 1.0% and subject to a margin of 1.75%; or (ii) LIBOR subject to a margin of 2.75%.
(3)
In June 2019, the buyer of a portfolio of net lease assets assumed a $228.0 million non-recourse mortgage (refer to Note 4). As of June 30, 2019, the weighted average interest rate of these loans is 4.5%, inclusive of the effect of interest rate swaps.
(4)
The Company prepaid these senior notes in March 2019 without penalty.
(5)
The Company can prepay these senior notes without penalty beginning June 15, 2020.
(6)
The Company can prepay these senior notes without penalty beginning July 1, 2020.
(7)
The Company can prepay these senior notes without penalty beginning April 1, 2021.
(8)
The Company can prepay these senior notes without penalty beginning September 15, 2021.
(9)
The Company's 3.125% senior convertible fixed rate notes due September 2022 ("3.125% Convertible Notes") are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding September 15, 2022. The conversion rate as of June 30, 2019 was 66.8675 shares per $1,000 principal amount of 3.125% Convertible Notes, which equals a conversion price of $14.95 per share. The conversion rate is subject to adjustment from time to time for specified events. Upon conversion, the Company will pay or deliver, as the case may be, a combination of cash and shares of its common stock. As such, at issuance in September 2017, the Company valued the debt component at $221.8 million, net of fees, and the equity component of the conversion feature at $22.5 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. In October 2017, the initial purchasers of the 3.125% Convertible Notes exercised their option to purchase an additional $37.5 million aggregate principal amount of the 3.125% Convertible Notes. At issuance, the Company valued the debt component at $34.0 million, net of fees, and the equity component of the conversion feature at $3.4 million, net of fees, and recorded the equity component in "Additional paid-in capital" on the Company's consolidated balance sheet. As of June 30, 2019, the carrying value of the 3.125% Convertible Notes was $265.6 million, net of fees, and the unamortized discount of the 3.125% Convertible Notes was $18.0 million, net of fees. During the three and six months ended June 30, 2019, the Company recognized $2.2 million and $4.5 million, respectively, of contractual interest and $1.2 million and $2.5 million, respectively, of discount amortization on the 3.125% Convertible Notes. During the three and six months ended June 30, 2018, the Company recognized $2.2 million and $4.5 million, respectively, of contractual interest and $1.2 million and $2.3 million, respectively, of discount amortization on the 3.125% Convertible Notes. The effective interest rate was 5.2%.
(10)
The Company capitalized interest relating to development activities of $3.5 million and $6.5 million during the three and six months ended June 30, 2019, respectively, and $2.1 million and $4.5 million during the three and six months ended June 30, 2018, respectively..
Schedule of future scheduled maturities of outstanding debt obligations As of June 30, 2019, future scheduled maturities of outstanding debt obligations are as follows ($ in thousands):
 
Unsecured Debt
 
Secured Debt
 
Total
2019 (remaining six months)
$
—

 
$
—

 
$
—

2020
400,000

 
—

 
400,000

2021
275,000

 
160,511

 
435,511

2022
1,062,500

 
48,438

 
1,110,938

2023
—

 
643,500

 
643,500

Thereafter
100,000

 
422,444

 
522,444

Total principal maturities
1,837,500

 
1,274,893

 
3,112,393

Unamortized discounts and deferred financing costs, net
(35,026
)
 
(8,811
)
 
(43,837
)
Total debt obligations, net
$
1,802,474

 
$
1,266,082

 
$
3,068,556
Schedule of carrying value of encumbered assets by asset type The carrying value of the Company's assets that are directly pledged or are held by subsidiaries whose equity is pledged as collateral to secure the Company's obligations under its secured debt facilities are as follows, by asset type ($ in thousands):
 
As of
 
June 30, 2019
 
December 31, 2018
 
Collateral Assets(1)
 
Non-Collateral Assets
 
Collateral Assets(1)
 
Non-Collateral Assets
Real estate, net
$
1,254,161

 
$
167,441

 
$
1,620,008

 
$
151,011

Real estate available and held for sale
—

 
12,770

 
1,055

 
21,496

Net investment in leases
421,842

 
—

 
—

 
—

Land and development, net
42,300

 
626,356

 
12,300

 
585,918

Loans receivable and other lending investments, net(2)(3)
364,665

 
519,939

 
498,524

 
480,154

Other investments
—

 
564,170

 
—

 
304,275

Cash and other assets
11,010

 
763,831

 
—

 
1,329,990

Total
$
2,093,978

 
$
2,654,507

 
$
2,131,887

 
$
2,872,844

_______________________________________________________________________________
(1)
The 2016 Senior Term Loan and the 2015 Revolving Credit Facility are secured only by pledges of equity of certain of the Company's subsidiaries and not by pledges of the assets held by such subsidiaries. Such subsidiaries are subject to contractual restrictions under the terms of such credit facilities, including restrictions on incurring new debt (subject to certain exceptions). As of June 30, 2019, Collateral Assets includes $403.2 million carrying value of assets held by entities pledged as collateral for the $325.0 million 2015 Revolving Credit Facility that is undrawn as of June 30, 2019.
(2)
As of June 30, 2019 and December 31, 2018, the amounts presented exclude general reserves for loan losses of $12.5 million and $13.0 million, respectively.
(3)
As of June 30, 2019 and December 31, 2018, the amounts presented exclude loan participations of $30.1 million and $22.5 million, respectively.