WPC 10-K Fiscal year ended Dec. 31, 2021

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W. P. Carey Inc. (“W. P. Carey”) is a real estate investment trust (“REIT”) that, together with our consolidated subsidiaries, invests primarily in operationally-critical, single-tenant commercial real estate properties located in the United States and Northern and Western Europe on a long-term basis. We earn revenue principally by leasing the properties we own to companies on a triple-net lease basis, which generally requires each tenant to pay the costs associated with operating and maintaining the property.

Founded in 1973, our shares of common stock are listed on the New York Stock Exchange under the symbol “WPC.”

We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. As a REIT, we are not subject to federal income taxes on income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We also own real property in jurisdictions outside the United States through foreign subsidiaries and are subject to income taxes on our pre-tax income earned from properties in such countries. Through our taxable REIT subsidiaries (“TRSs”), we also earn revenue as the advisor to certain non-traded investment programs. We hold all of our real estate assets attributable to our Real Estate segment under the REIT structure, while the activities conducted by our Investment Management segment subsidiaries have been organized under TRSs.

On April 13, 2020, two of the non-traded REITs that we advised, Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”) (together, the “CWI REITs”), merged in an all-stock transaction, with CWI 2 as the surviving entity (the “CWI 1 and CWI 2 Merger”). Following the close of the CWI 1 and CWI 2 Merger, our advisory agreements with CWI 1 and CWI 2 were terminated, CWI 2 was renamed Watermark Lodging Trust, Inc. (“WLT”), and we began to provide certain services to WLT pursuant to a transition services agreement (which was terminated on October 13, 2021). At December 31, 2021, we were the advisor to the following entities ( Note 3 ):

• Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”), a publicly owned, non-traded REIT that primarily invests in commercial real estate properties; we refer to CPA:18 – Global together with the CWI REITs as the “Managed REITs” (as used throughout this Report, the term “Managed REITs” does not include CWI 1 and CWI 2 after April 13, 2020); and

• Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties and similar investments in Europe ( Note 3 ); we refer to the Managed REITs and CESH collectively as the “Managed Programs.”

We no longer raise capital for new or existing funds, but currently expect to continue managing CPA:18 – Global and CESH through the end of their respective life cycles ( Note 3 ).

On August 31, 2021, CPA:18 – Global reported that its independent directors intended to begin the process of evaluating possible liquidity alternatives for its shareholders, including a transaction involving us or one of our subsidiaries. There can be no assurance that any such liquidity transaction will occur in the near future or at all.

Reportable Segments

Real Estate — Lease revenues from our real estate investments generate the vast majority of our earnings. We invest primarily in commercial properties located in the United States and Northern and Western Europe, which are leased to companies on a triple-net lease basis. At December 31, 2021, our owned portfolio was comprised of our full or partial ownership interests in 1,304 properties, totaling approximately 156 million square feet (unaudited), substantially all of which were net leased to 352 tenants, with a weighted-average lease term of 10.8 years and an occupancy rate of 98.5 %. In addition, at December 31, 2021, our portfolio was comprised of full or partial ownership interests in 20 operating properties, including 19 self-storage properties and one hotel, totaling approximately 1.4 million square feet (unaudited).

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Investment Management — Through our TRSs, we manage the real estate investment portfolios for the Managed Programs, for which we earn asset management revenue. We may earn incentive revenue and receive other compensation through our advisory agreements with certain of the Managed Programs, including in connection with providing a liquidity event for CPA:18 – Global’s stockholders. In addition, we include equity income generated through our (i) ownership of shares and limited partnership units of the Managed Programs ( Note 7 ) and (ii) special general partner interest in the operating partnership of CPA:18 – Global (through which we participate in its cash flows ( Note 3 )), in our Investment Management segment.

At December 31, 2021, the Managed Programs owned all or a portion of 56 net-leased properties (including certain properties in which we also have an ownership interest), totaling approximately 10.8 million square feet (unaudited), substantially all of which were leased to 50 tenants, with an occupancy rate of approximately 98.3 %. The Managed Programs also had interests in 66 operating properties (totaling approximately 5.1 million square feet (unaudited) in the aggregate) and four active build-to-suit projects at the same date.

Critical Accounting Policies and Estimates

Accounting for Acquisitions

In accordance with the guidance for business combinations, we determine whether a transaction or other event is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, we account for the transaction or other event as an asset acquisition. Under both methods, we recognize the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, we evaluate the existence of goodwill or a gain from a bargain purchase. We capitalize acquisition-related costs and fees associated with asset acquisitions. We immediately expense acquisition-related costs and fees associated with business combinations. All transaction costs incurred during the reporting period were capitalized since our acquisitions were classified as asset acquisitions.

Purchase Price Allocation of Tangible Assets — When we acquire properties with leases classified as operating leases, we allocate the purchase price to the tangible and intangible assets and liabilities acquired based on their estimated fair values. The tangible assets consist of land, buildings, and site improvements. The intangible assets include the above- and below-market value of leases and the in-place leases, which includes the value of tenant relationships. Land is typically valued utilizing the sales comparison (or market) approach. Buildings are valued, as if vacant, using the cost and/or income approach. The fair value of real estate is determined (i) by applying a discounted cash flow analysis to the estimated net operating income for each property in the portfolio during the remaining anticipated lease term, and (ii) by the estimated residual value, which is based on a hypothetical sale of the property upon expiration of a lease factoring in the re-tenanting of such property at estimated market rental rates, and applying a selected capitalization rate.

Assumptions used in the model are property-specific where this information is available; however, when certain necessary information is not available, we use available regional and property-type information. Assumptions and estimates include the following:

• a discount rate or internal rate of return;

• market rents, growth factors of rents, and market lease term;

• a capitalization rate to be applied to an estimate of market rent at the end of the market lease term;

• the marketing period necessary to put a lease in place;

• carrying costs during the marketing period; and

• leasing commissions and tenant improvement allowances.

The discount rates and residual capitalization rates used to value the properties are selected based on several factors, including:

• the creditworthiness of the lessees;

• industry surveys;

• property type;

• property location and age;

• current lease rates relative to market lease rates; and

• anticipated lease duration.

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In the case where a tenant has a purchase option deemed to be favorable to the tenant, or the tenant has long-term renewal options at rental rates below estimated market rental rates, we generally include the value of the exercise of such purchase option or long-term renewal options in the determination of residual value.

The remaining economic life of leased assets is estimated by relying in part upon third-party appraisals of the leased assets and industry standards. Different estimates of remaining economic life will affect the depreciation expense that is recorded.

Purchase Price Allocation of Intangible Assets and Liabilities — We record above- and below-market lease intangible assets and liabilities for acquired properties based on the present value (using a discount rate reflecting the risks associated with the leases acquired including consideration of the credit of the lessee) of the difference between (i) the contractual rents to be paid pursuant to the leases negotiated or in place at the time of acquisition of the properties and (ii) our estimate of fair market lease rates for the property or equivalent property, both of which are measured over the estimated lease term, which includes renewal options that have rental rates below estimated market rental rates. We discount the difference between the estimated market rent and contractual rent to a present value using an interest rate reflecting our current assessment of the risk associated with the lease acquired, which includes a consideration of the credit of the lessee. When we enter into sale-leaseback transactions with above- or below-market leases, the intangibles will be accounted for as loan receivables or prepaid rent liabilities, respectively. We measure the fair value of below-market purchase option liabilities we acquire as the excess of the present value of the fair value of the real estate over the present value of the tenant’s exercise price at the option date. We determine these values using our estimates or by relying in part upon third-party valuations conducted by independent appraisal firms.

We amortize the above-market lease intangible as a reduction of lease revenue over the remaining contractual lease term. We amortize the below-market lease intangible as an increase to lease revenue over the initial term and any renewal periods in the respective leases. We include the value of below-market leases in Below-market rent and other intangible liabilities in the consolidated financial statements.

The value of any in-place lease is estimated to be equal to the acquirer’s avoidance of costs as a result of having tenants in place, that would be necessary to lease the property for a lease term equal to the remaining primary in-place lease term and the value of investment grade tenancy. The cost avoidance is derived first by determining the in-place lease term on the subject lease. Then, based on our review of the market, the cost to be borne by a property owner to replicate a market lease to the remaining in-place term is estimated. These costs consist of: (i) rent lost during downtime (i.e., assumed periods of vacancy), (ii) estimated expenses that would be incurred by the property owner during periods of vacancy, (iii) rent concessions (i.e., free rent), (iv) leasing commissions, and (v) tenant improvements allowances given to tenants. We determine these values using our estimates or by relying in part upon third-party valuations. We amortize the value of in-place lease intangibles to depreciation and amortization expense over the remaining initial term of each lease. The amortization period for intangibles does not exceed the remaining depreciable life of the building.

If a lease is terminated, we charge the unamortized portion of above- and below-market lease values to rental income and in-place lease values to amortization expense. If a lease is amended, we will determine whether the economics of the amended lease continue to support the existence of the above- or below-market lease intangibles.

Purchase Price Allocation of Debt — When we acquire leveraged properties, the fair value of the related debt instruments is determined using a discounted cash flow model with rates that take into account the credit of the tenants, where applicable, and interest rate risk. Such resulting premium or discount is amortized over the remaining term of the obligation. We also consider the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the tenant, the time until maturity and the current interest rate.

Purchase Price Allocation of Goodwill — In the case of a business combination, after identifying all tangible and intangible assets and liabilities, the excess consideration paid over the fair value of the assets and liabilities acquired and assumed, respectively, represents goodwill. We allocate goodwill to the respective reporting units in which such goodwill arises. Goodwill acquired in certain business combinations was attributed to the Real Estate segment which comprises one reporting unit. In the event we dispose of a property or an investment that constitutes a business under U.S. generally accepted accounting principles (“GAAP”) from a reporting unit with goodwill, we allocate a portion of the reporting unit’s goodwill to that business in determining the gain or loss on the disposal of the business. The amount of goodwill allocated to the business is based on the relative fair value of the business to the fair value of the reporting unit. As part of purchase accounting for a business, we record any deferred tax assets and/or liabilities resulting from the difference between the tax basis and GAAP basis of the investment

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in the taxing jurisdiction. Such deferred tax amount will be included in purchase accounting and may impact the amount of goodwill recorded depending on the fair value of all of the other assets and liabilities and the amounts paid.

Financing Arrangements — In accordance with Accounting Standards Codification (“ASC”) 310, Receivables and ASC 842, Leases , real estate assets acquired through a sale-leaseback transaction are accounted for as a financing arrangement if the investment does not meet the criteria for sale-leaseback accounting. We record such investments within Net investments in direct financing leases and loans receivable on the consolidated balance sheets. Rent payments from these investments are included within Income from direct financing leases and loans receivable on the consolidated statements of income.

Impairments

Real Estate — We periodically assess whether there are any indicators that the value of our long-lived real estate and related intangible assets may be impaired or that their carrying value may not be recoverable. These impairment indicators include, but are not limited to, vacancies, an upcoming lease expiration, a tenant with credit difficulty, the termination of a lease by a tenant, or a likely disposition of the property.

For real estate assets held for investment and related intangible assets in which an impairment indicator is identified, we follow a two-step process to determine whether an asset is impaired and to determine the amount of the charge. First, we compare the carrying value of the property’s asset group to the estimated future net undiscounted cash flow that we expect the property’s asset group will generate, including any estimated proceeds from the eventual sale of the property’s asset group. The undiscounted cash flow analysis requires us to make our best estimate of market rents, residual values, and holding periods. We estimate market rents and residual values using market information from outside sources such as third-party market research, external appraisals, broker quotes, or recent comparable sales.

As our investment objective is to hold properties on a long-term basis, holding periods used in the undiscounted cash flow analysis are generally ten years, but may be less if our intent is to hold a property for less than ten years. Depending on the assumptions made and estimates used, the future cash flow projected in the evaluation of long-lived assets and associated intangible assets can vary within a range of outcomes. We consider the likelihood of possible outcomes in determining our estimate of future cash flows and, if warranted, we apply a probability-weighted method to the different possible scenarios. If the future net undiscounted cash flow of the property’s asset group is less than the carrying value, the carrying value of the property’s asset group is considered not recoverable. We then measure the impairment loss as the excess of the carrying value of the property’s asset group over its estimated fair value.

Assets Held for Sale — We generally classify real estate assets that are subject to operating leases as held for sale when we have entered into a contract to sell the property, all material due diligence requirements have been satisfied, we received a non-refundable deposit, and we believe it is probable that the disposition will occur within one year. When we classify an asset as held for sale, we compare the asset’s fair value less estimated cost to sell to its carrying value, and if the fair value less estimated cost to sell is less than the property’s carrying value, we reduce the carrying value to the fair value less estimated cost to sell. We will continue to review the property for subsequent changes in the fair value, and may recognize an additional impairment charge, if warranted.

Direct Financing Leases — This policy was superseded by Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses , which we adopted on January 1, 2020 and which is described below under Credit Losses . Prior to this adoption, we periodically assessed whether there were any indicators that the value of our net investments in direct financing leases may have been impaired. When determining a possible impairment, we considered the collectibility of direct financing lease receivables for which a reserve would have been required if any losses were both probable and reasonably estimable. In addition, we determined whether there had been a permanent decline in the estimate of the residual value of the property. If this review indicated a permanent decline in the fair value of the asset below its carrying value , we recognized an impairment charge.

Equity Method Investments — We evaluate our equity method investments on a periodic basis to determine if there are any indicators that the value of our equity investment may be impaired and whether or not that impairment is other-than-temporary. To the extent an impairment has occurred and is determined to be other-than-temporary, we measure the charge as the excess of the carrying value of our investment over its estimated fair value, which is determined by calculating our share of the estimated fair market value of the underlying net assets based on the terms of the applicable partnership or joint-venture agreement. For our investment in CPA:18 – Global, we calculate the estimated fair value of our investment using its most recently published net asset value per share (“NAV”) multiplied by the number of shares owned. For our equity investments in real estate, we

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calculate the estimated fair value of the underlying investment’s real estate or net investment in direct financing lease as described in Real Estate and Direct Financing Leases above. The fair value of the underlying investment’s debt, if any, is calculated based on market interest rates and other market information. The fair value of the underlying investment’s other financial assets and liabilities (excluding net investment in direct financing leases) have fair values that generally approximate their carrying values.

Goodwill — We evaluate goodwill for possible impairment at least annually or upon the occurrence of a triggering event. Such a triggering event within our Investment Management segment depends on the timing and form of liquidity events for the Managed Programs ( Note 3 ). To identify any impairment, we first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. This assessment is used as a basis to determine whether it is necessary to calculate reporting unit fair values. If necessary, we calculate the estimated fair value of the Investment Management reporting unit by utilizing a discounted cash flow analysis methodology and available NAVs. We calculate the estimated fair value of the Real Estate reporting unit by utilizing our market capitalization and the aforementioned fair value of the Investment Management segment. Impairments, if any, will be the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of goodwill.

Credit Losses

We adopted ASU 2016-13, Financial Instruments — Credit Losses on January 1, 2020, which replaces the “incurred loss” model with an “expected loss” model, resulting in the earlier recognition of credit losses even if the risk of loss is remote. This standard applies to financial assets measured at amortized cost and certain other instruments, including net investments in direct financing leases and loans receivable. This standard does not apply to receivables arising from operating leases, which are within the scope of Topic 842 . We adopted ASU 2016-13 using the modified retrospective method, under which we recorded a cumulative-effect adjustment as a charge to retained earnings of $ 14.8 million on January 1, 2020, which is reflected within our consolidated statements of equity.

The allowance for credit losses, which is recorded as a reduction to Net investments in direct financing leases and loans receivable on our consolidated balance sheets, is measured on a pool basis by credit ratings ( Note 5 ), using a probability of default method based on the lessees’ respective credit ratings, the expected value of the underlying collateral upon its repossession, and our historical loss experience related to other direct financing leases. Included in our model are factors that incorporate forward-looking information. Allowance for credit losses is included in our consolidated statements of income within Other gains and (losses).

Other Accounting Policies

Basis of Consolidation — Our consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portions of equity in consolidated subsidiaries that are not attributable, directly or indirectly, to us are presented as noncontrolling interests. All significant intercompany accounts and transactions have been eliminated.

When we obtain an economic interest in an entity, we evaluate the entity to determine if it should be deemed a VIE and, if so, whether we are the primary beneficiary and are therefore required to consolidate the entity. We apply accounting guidance for consolidation of VIEs to certain entities in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered a VIE unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review the contractual arrangements provided for in the partnership agreement or other related contracts to determine whether the entity is considered a VIE, and to establish whether we have any variable interests in the VIE. We then compare our variable interests, if any, to those of the other variable interest holders to determine which party is the primary beneficiary of the VIE based on whether the entity (i) has the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The liabilities of these VIEs are non-recourse to us and can only be satisfied from each VIE’s respective assets.

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At December 31, 2021 and 2020, we considered 14 and 12 entities to be VIEs, respectively, of which we consolidated six and five , respectively, as we are considered the primary beneficiary. The following table presents a summary of selected financial data of the consolidated VIEs included in our consolidated balance sheets (in thousands):

			December 31,
			2021						2020
Land, buildings and improvements			$	426,831					$	423,333
Net investments in direct financing leases and loans receivable			144,103						15,242
In-place lease intangible assets and other			42,884						41,997
Above-market rent intangible assets			26,720						26,720
Accumulated depreciation and amortization			( 154,413 )						( 137,827 )
Total assets			500,884						381,953
Non-recourse mortgages, net			$	1,485					$	3,508
Below-market rent and other intangible liabilities, net			20,568						22,283
Total liabilities			46,302						48,971

At December 31, 2021 and 2020, our eight and seven unconsolidated VIEs included our interests in (i) six and five unconsolidated real estate investments, respectively, which we account for under the equity method of accounting (we do not consolidate these entities because we are not the primary beneficiary and the nature of our involvement in the activities of these entities allows us to exercise significant influence on, but does not give us power over, decisions that significantly affect the economic performance of these entities), and (ii) two unconsolidated investments in equity securities, which we accounted for as investments in shares of the entities at fair value. As of December 31, 2021 and 2020, the net carrying amount of our investments in these entities was $ 581.3 million and $ 425.3 million, respectively, and our maximum exposure to loss in these entities was limited to our investments.

Leases

As a Lessee : Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. We determine if an arrangement contains a lease at contract inception and determine the classification of the lease at commencement. Operating lease ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. We do not include renewal options in the lease term when calculating the lease liability unless we are reasonably certain we will exercise the option. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our variable lease payments consist of increases as a result of the Consumer Price Index (“CPI”) or other comparable indices, taxes, and maintenance costs. Lease expense for lease payments is recognized on a straight-line basis over the term of the lease. Below-market ground lease intangible assets and above-market ground lease intangible liabilities are included as a component of ROU assets. See Note 4 for additional disclosures on the presentation of these amounts in our consolidated balance sheets.

The implicit rate within our operating leases is generally not determinable and, as a result, we use our incremental borrowing rate at the lease commencement date to determine the present value of lease payments. The determination of our incremental borrowing rate requires judgment. We determine our incremental borrowing rate for each lease using estimated baseline mortgage rates. These baseline rates are determined based on a review of current mortgage debt market activity for benchmark securities across domestic and international markets, utilizing a yield curve. The rates are then adjusted for various factors, including level of collateralization and lease term.

As a Lessor : We combine non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues), since both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component, and the lease component would otherwise be classified as an operating lease. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred, if the reimbursements are deemed collectible.

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Reclassifications — Certain prior period amounts have been reclassified to conform to the current period presentation.

Asset management revenue and structuring and other advisory revenue are now included within Asset management and other revenue in the consolidated statements of income.

We currently present Non-operating income on its own line item in the consolidated statements of income, which was previously included within Other gains and (losses). Non-operating income primarily consists of realized gains and losses on derivative instruments, dividends from equity securities, and interest income on our cash deposits and loans to affiliates.

We currently present Income from direct financing leases and loans receivable on its own line item in the consolidated statements of income. Previously, income from direct financing leases was included within Lease revenues and income from loans receivable was included within Lease termination income and other in the consolidated statements of income.

Loans receivable are now included within the retitled line item Net investments in direct financing leases and loans receivable in the consolidated balance sheets. Previously, loans receivable were included within Other assets, net in the consolidated balance sheets.

Restricted Cash — Restricted cash primarily consists of security deposits and amounts required to be reserved pursuant to lender agreements for debt service, capital improvements, and real estate taxes. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to the consolidated statements of cash flows (in thousands):

			December 31,
			2021						2020						2019
Cash and cash equivalents			$	165,427					$	248,662					$	196,028
Restricted cash			52,523						63,117						55,490
Total cash and cash equivalents and restricted cash			$	217,950					$	311,779					$	251,518

Land, Buildings and Improvements — We carry land, buildings, and improvements at cost less accumulated depreciation. We capitalize costs that extend the useful life of properties or increase their value, while we expense maintenance and repairs that do not improve or extend the lives of the respective assets as incurred.

Gain/Loss on Sale — We recognize gains and losses on the sale of properties when the transaction meets the definition of a contract, criteria are met for the sale of one or more distinct assets, and control of the properties is transferred.

Cash and Cash Equivalents — We consider all short-term, highly liquid investments that are both readily convertible to cash and have a maturity of three months or less at the time of purchase to be cash equivalents. Items classified as cash equivalents include commercial paper and money market funds. Our cash and cash equivalents are held in the custody of several financial institutions, and these balances, at times, exceed federally insurable limits. We seek to mitigate this risk by depositing funds only with major financial institutions.

Internal-Use Software Development Costs and Cloud Computing Arrangements — We expense costs associated with the assessment stage of software development projects. Upon completion of the preliminary project assessment stage, we capitalize internal and external costs associated with the application development stage. We expense the personnel-related costs of training and data conversion. We also expense costs associated with the post-implementation and operation stage, including maintenance and specified upgrades; however, we capitalize internal and external costs associated with significant upgrades to existing systems that result in additional functionality. Cloud computing arrangement costs follow the internal-use software accounting guidance to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized internal-use software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is three to seven years . Capitalized implementation costs related to a service contract will be amortized over the term of the hosting arrangement beginning when the component of the hosting arrangement is ready for its intended use. Periodically, we reassess the useful life considering technology, obsolescence, and other factors.

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Other Assets and Liabilities — We include prepaid expenses, deferred rental income, tenant receivables, deferred charges, escrow balances held by lenders, restricted cash balances, marketable securities, derivative assets, other intangible assets, corporate fixed assets, our investment in shares of Lineage Logistics (a cold storage REIT) ( Note 8 ), our investment in shares of Guggenheim Credit Income Fund (“GCIF”) ( Note 8 ), and office lease ROU assets in Other assets, net. We include derivative liabilities, amounts held on behalf of tenants, operating lease liabilities, and deferred revenue in Accounts payable, accrued expenses and other liabilities.

Revenue Recognition, Real Estate Leased to Others — We lease real estate to others primarily on a triple-net leased basis, whereby the tenant is generally responsible for operating expenses relating to the property, including property taxes, insurance, maintenance, repairs, and improvements.

Substantially all of our leases provide for either scheduled rent increases, periodic rent adjustments based on formulas indexed to changes in the CPI or similar indices, or percentage rents. CPI-based adjustments are contingent on future events and are therefore not included as minimum rent in straight-line rent calculations. We recognize rents from percentage rents as reported by the lessees, which is after the level of sales requiring a rental payment to us is reached. Percentage rents were insignificant for the periods presented.

For our operating leases, we recognize future minimum rental revenue on a straight-line basis over the non-cancelable lease term of the related leases and charge expenses to operations as incurred ( Note 4 ). We record leases accounted for under the direct financing method as a net investment in direct financing leases ( Note 5 ). The net investment is equal to the cost of the leased assets. The difference between the cost and the gross investment, which includes the residual value of the leased asset and the future minimum rents, is unearned income. We defer and amortize unearned income to income over the lease term so as to produce a constant periodic rate of return on our net investment in the lease.

Revenue from contracts under ASC 606, Revenue from Contracts with Customers is recognized when, or as, control of promised goods or services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. At contract inception, we assess the services promised in our contracts with customers and identify a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. ASC 606 does not apply to our lease revenues, which constitute a majority of our revenues, but primarily applies to revenues generated from our hotel operating properties and our Investment Management segment.

Revenue from contracts for our Real Estate segment primarily represented hotel operating property revenues of $ 7.2 million, $ 5.9 million, and $ 29.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. Such operating property revenues are primarily comprised of revenues from room rentals and from food and beverage services at our hotel operating properties during those years. We identified a single performance obligation for each distinct service. Performance obligations are typically satisfied at a point in time, at the time of sale, or at the rendering of the service. Fees are generally determined to be fixed. Payment is typically due immediately following the delivery of the service. Revenue from contracts under ASC 606 from our Investment Management segment is discussed in Note 3 .

Lease revenue (including straight-line lease revenue) is only recognized when deemed probable of collection. Collectibility is assessed for each tenant receivable using various criteria including credit ratings ( Note 5 ), guarantees, past collection issues, and the current economic and business environment affecting the tenant. If collectibility of the contractual rent stream is not deemed probable, revenue will only be recognized upon receipt of cash from the tenant.

Revenue Recognition, Investment Management Operations — We earn structuring revenue and asset management revenue in connection with providing services to the Managed Programs. We earn structuring revenue for services we provide in connection with the analysis, negotiation, and structuring of transactions, including acquisitions and dispositions and the placement of mortgage financing obtained by the Managed Programs. We earn asset management revenue from property management, leasing, and advisory services performed. In addition, we earn subordinated incentive and disposition revenue related to the disposition of properties. We may also earn termination revenue in connection with a liquidity event and/or the termination of the advisory agreements for the Managed REITs.

The Managed Programs reimburse us for certain personnel and overhead costs that we incur on their behalf. We record reimbursement income as the expenses are incurred, subject to limitations imposed by the advisory agreements.

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Asset Retirement Obligations — Asset retirement obligations relate to the legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development, and/or normal operation of a long-lived asset. The fair value of a liability for an asset retirement obligation is recorded in the period in which it is incurred or at the point of acquisition of an asset with an assumed asset retirement obligation, and the cost of such liability is recorded as an increase in the carrying amount of the related long-lived asset by the same amount. The liability is accreted each period and the capitalized cost is depreciated over the estimated remaining life of the related long-lived asset. Revisions to estimated retirement obligations result in adjustments to the related capitalized asset and corresponding liability.

In order to determine the fair value of the asset retirement obligations, we make certain estimates and assumptions including, among other things, projected cash flows, the borrowing interest rate, and an assessment of market conditions that could significantly impact the estimated fair value. These estimates and assumptions are subjective.

Depreciation — We compute depreciation of building and related improvements using the straight-line method over the estimated remaining useful lives of the properties (not to exceed 40 years) and furniture, fixtures, and equipment. We compute depreciation of tenant improvements using the straight-line method over the lesser of the remaining term of the lease or the estimated useful life.

Stock-Based Compensation — We have granted restricted share awards (“RSAs”), restricted share units (“RSUs”), and performance share units (“PSUs”) to certain employees, independent directors, and nonemployees. Grants were awarded in the name of the recipient subject to certain restrictions of transferability and a risk of forfeiture. Stock-based compensation expense for all equity-classified stock-based compensation awards is based on the grant date fair value estimated in accordance with current accounting guidance for share-based payments, which includes awards granted to certain nonemployees. We recognize these compensation costs for only those shares expected to vest on a straight-line basis over the requisite service or performance period of the award. We include stock-based compensation within Additional paid-in capital in the consolidated statements of equity and Stock-based compensation expense in the consolidated statements of income.

Foreign Currency Translation and Transaction Gains and Losses — We have interests in international real estate investments primarily in Europe, Canada, and Japan, and the primary functional currencies for those investments are the euro, the British pound sterling, the Canadian dollar, and the Japanese yen. We perform the translation from these currencies to the U.S. dollar for assets and liabilities using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the average exchange rate during the month in which the transaction occurs. We report the gains and losses resulting from such translation as a component of other comprehensive income in equity. These translation gains and losses are released to net income (within Gain on sale of real estate, net, in the consolidated statements of income) when we have substantially exited from all investments in the related currency.

A transaction gain or loss (measured from the transaction date or the most recent intervening balance sheet date, whichever is later), realized upon settlement of a foreign currency transaction generally will be included in net income for the period in which the transaction is settled. Also, foreign currency intercompany transactions that are scheduled for settlement, consisting primarily of accrued interest and the translation to the reporting currency of intercompany debt that is short-term or has scheduled principal payments, are included in the determination of net income (within Other gains and (losses) in the statements of income).

The translation impact of foreign currency transactions of a long-term nature (that is, settlement is not planned or anticipated in the foreseeable future), in which the entities involved in the transactions are consolidated or accounted for by the equity method in our consolidated financial statements, are not included in net income but are reported as a component of other comprehensive income in equity.

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Derivative Instruments — We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For derivatives designated and that qualify as cash flow hedges, the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged transaction affects earnings. Gains and losses on the cash flow hedges representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. Such gains and losses are recorded within Other gains and (losses) or Interest expense in our consolidated statements of income. The earnings recognition of excluded components is presented in the same line item as the hedged transactions. For derivatives designated and that qualify as a net investment hedge, the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive income (loss) into earnings (within Gain on sale of real estate, net, in our consolidated statements of income) when the hedged investment is either sold or substantially liquidated. In accordance with fair value measurement guidance, counterparty credit risk is measured on a net portfolio position basis.

Segment Allocation Changes — Beginning with the second quarter of 2020, general and administrative expenses attributed to our Investment Management segment are comprised of the incremental costs of providing services to the Managed Programs, which are fully reimbursed by those funds (resulting in no net expense for us). All other general and administrative expenses are attributed to our Real Estate segment. Previously, general and administrative expenses were allocated based on time incurred by our personnel for the Real Estate and Investment Management segments. In addition, beginning with the second quarter of 2020, stock-based compensation expense and corporate depreciation and amortization expense are fully recognized within our Real Estate segment. In light of the termination of the advisory agreements with CWI 1 and CWI 2 in connection with the WLT management internalization ( Note 3 ), we now view essentially all assets, liabilities, and operational expenses as part of our Real Estate segment, other than incremental activities that are expected to wind down as we manage CPA:18 –Global and CESH through the end of their respective life cycles. These changes between the segments had no impact on our consolidated financial statements.

In addition, our investments in WLT, and income recognized from our investments in WLT, are included within our Real Estate segment, since we are not the advisor to that company. Previously, our investments in CWI 1 and CWI 2, and income recognized from our investments in CWI 1 and CWI 2, were included within our Investment Management segment ( Note 3 ).

Income Taxes — We conduct business in various states and municipalities primarily within North America and Europe, and as a result, we or one or more of our subsidiaries file income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. We derive most of our REIT income from our real estate operations under our Real Estate segment. Our domestic real estate operations are generally not subject to federal tax, and accordingly, no provision has been made for U.S. federal income taxes in the consolidated financial statements for these operations. These operations may be subject to certain state and local taxes, as applicable. We conduct our Investment Management operations primarily through TRSs. In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate-related business. These operations are subject to federal, state, local, and foreign taxes, as applicable. Our financial statements are prepared on a consolidated basis including these TRSs and include a provision for current and deferred taxes on these operations.

Significant judgment is required in determining our tax provision and in evaluating our tax positions. We establish tax reserves based on a benefit recognition model, which could result in a greater amount of benefit (and a lower amount of reserve) being initially recognized in certain circumstances. Provided that the tax position is deemed more likely than not of being sustained, we recognize the largest amount of tax benefit that is greater than 50% likely of being ultimately realized upon settlement. We derecognize the tax position when it is no longer more likely than not of being sustained.

Our earnings and profits, which determine the taxability of distributions to stockholders, differ from net income reported for financial reporting purposes due primarily to differences in depreciation, including hotel properties, and timing differences of rent recognition and certain expense deductions, for federal income tax purposes.

We recognize deferred income taxes in certain of our subsidiaries taxable in the United States or in foreign jurisdictions. Deferred income taxes are generally the result of temporary differences (items that are treated differently for tax purposes than for GAAP purposes as described in Note 14 ). In addition, deferred tax assets arise from unutilized tax net operating losses, generated in prior years. Deferred income taxes are computed under the asset and liability method. The asset and liability method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between tax bases and financial bases of assets and liabilities. We provide a valuation allowance against our

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deferred income tax assets when we believe that it is more likely than not that all or some portion of the deferred income tax asset may not be realized. Whenever a change in circumstances causes a change in the estimated realizability of the related deferred income tax asset, the resulting increase or decrease in the valuation allowance is included in deferred income tax expense (benefit).

Earnings Per Share — Basic earnings per share is calculated by dividing net income available to common stockholders, as adjusted for unallocated earnings attributable to the nonvested RSUs by the weighted-average number of shares of common stock outstanding during the year. Diluted earnings per share reflects potentially dilutive securities (RSAs, RSUs, PSUs, and shares available for issuance under our Equity Forwards) using the treasury stock method, except when the effect would be anti-dilutive.

Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates.

Recently Adopted Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives, and other contracts. On January 7, 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the transition. We have evaluated contracts that reference London Interbank Offered Rate (“LIBOR”) or other discontinued reference rates and accounted for the necessary modifications with a replacement reference rate using the expedients and exceptions provided for in ASU 2020-04 and ASU 2021-01. As of December 31, 2021, this reference rate transition impacted only our Senior Unsecured Credit Facility, as described in Note 10 . In December 2021, the Senior Unsecured Credit Facility was amended to transition to certain replacement reference rates. The adoption of these standards did not have a material impact on our consolidated financial statements.

Advisory Agreements and Partnership Agreements with the Managed Programs

We currently have advisory agreements with CPA:18 – Global and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. Upon completion of the CWI 1 and CWI 2 Merger on April 13, 2020, as described below, our advisory agreements with CWI 1 and CWI 2 were terminated, and we no longer receive fees, reimbursements, or distributions of Available Cash from CWI 1 and CWI 2. We no longer raise capital for new or existing funds, but we currently expect to continue to manage CPA:18 – Global and CESH and earn various fees (as described below) through the end of their respective life cycles. We have partnership agreements with CPA:18 – Global and CESH, and under the partnership agreement with CPA:18 – Global, we are entitled to receive certain cash distributions from its operating partnership.

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The following tables present a summary of revenue earned, reimbursable costs, and distributions of Available Cash received/accrued from the Managed Programs and WLT for the periods indicated, included in the consolidated financial statements (in thousands):

			Years Ended December 31,
			2021						2020						2019
Asset management revenue (a)			$	15,363					$	21,973					$	39,132
Distributions of Available Cash (b)			7,345						7,225						21,489
Reimbursable costs from affiliates (a)			4,035						8,855						16,547
Interest income on deferred acquisition fees and loans to affiliates (c)			120						369						2,237
Structuring and other advisory revenue (a)			—						494						4,224
			$	26,863					$	38,916					$	83,629

			Years Ended December 31,
			2021						2020						2019
CPA:18 – Global			$	22,867					$	22,200					$	26,039
CWI 1			—						5,662						30,770
CWI 2			—						4,668						21,584
CESH			3,713						4,723						5,236
WLT (reimbursed transition services)			283						1,663						—
			$	26,863					$	38,916					$	83,629

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(a) Amounts represent revenues from contracts under ASC 606.

(b) Included within (Losses) earnings from equity method investments in the consolidated statements of income.

(c) Included within Non-operating income in the consolidated statements of income.

The following table presents a summary of amounts included in Due from affiliates in the consolidated financial statements (in thousands):

			December 31,
			2021						2020
Reimbursable costs			$	974					$	1,760
Asset management fees receivable			494						1,054
Accounts receivable			336						305
Current acquisition fees receivable			19						136
Deferred acquisition fees receivable, including accrued interest			3						1,858
Short-term loans to affiliates, including accrued interest			—						21,144
			$	1,826					$	26,257

Performance Obligations and Significant Judgments

The fees earned pursuant to our advisory agreements are considered variable consideration. For the agreements that include multiple performance obligations, including asset management and investment structuring services, revenue is allocated to each performance obligation based on estimates of the price that we would charge for each promised service if it were sold on a standalone basis.

Judgment is applied in assessing whether there should be a constraint on the amount of fees recognized, such as amounts in excess of certain threshold limits with respect to the contract price or any potential clawback provisions included in certain of our arrangements. We exclude fees subject to such constraints to the extent it is probable that a significant reversal of those amounts will occur.

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Asset Management Revenue

Under the advisory agreements with the Managed Programs, we earn asset management revenue for managing their investment portfolios. The following table presents a summary of our asset management fee arrangements with the remaining Managed Programs:

Managed Program

Rate

Payable

Description

CPA:18 – Global

0.5 % – 1.5 %

In shares of its Class A common stock and/or cash, at the option of CPA:18 – Global; payable 50 % in cash and 50 % in shares of its Class A common stock for 2019 and for January 1, 2020 to March 31, 2020; payable in shares of its Class A common stock effective as of April 1, 2020

Rate depends on the type of investment and is based on the average market or average equity value, as applicable

CESH

1.0 %

In cash

Based on gross assets at fair value

For CWI 1 and CWI 2 (prior to the closing of the CWI 1 and CWI 2 Merger on April 13, 2020), we earned asset management fees of 0.5 % and 0.55 %, respectively, of the average market values of their respective investment portfolios, paid in shares of their common stock and Class A common stock, respectively. We were required to pay 20 % and 25 % of such fees to the subadvisors of CWI 1 and CWI 2, respectively.

The performance obligation for asset management services is satisfied over time as services are rendered. The time-based output method is used to measure progress over time, as this is representative of the transfer of the services. We are compensated for our services on a monthly or quarterly basis. However, these services represent a series of distinct daily services under ASC 606, Revenue from Contracts with Customers . Accordingly, we satisfy the performance obligation and resolve the variability associated with our fees on a daily basis. We apply the practical expedient and, as a result, do not disclose variable consideration attributable to wholly or partially unsatisfied performance obligations as of the end of the reporting period.

In providing asset management services, we are reimbursed for certain costs. Direct reimbursement of these costs does not represent a separate performance obligation. Payment for asset management services is typically due on the first business day following the month of the delivery of the service.

Structuring and Other Advisory Revenue

Under the terms of the advisory agreements with the Managed Programs, we may earn revenue for structuring and negotiating investments. For CPA:18 – Global and CESH, we may earn fees of 4.5 % and 2.0 %, respectively, of the total aggregate cost of the investments or commitments made. For CWI 1 and CWI 2 (prior to the closing of the CWI 1 and CWI 2 Merger on April 13, 2020), we were entitled to fees for structuring investments and loan refinancings. We were required to pay 20 % and 25 % of such fees to the subadvisors of CWI 1 and CWI 2, respectively.

The performance obligation for investment structuring services is satisfied at a point in time upon the closing of an investment acquisition, when there is an enforceable right to payment, and control (as well as the risks and rewards) has been transferred. Determining when control transfers requires management to make judgments that affect the timing of revenue recognized. Payment is due either on the day of acquisition (current portion) or deferred, as described above ( Note 5 ). We do not believe the deferral of the fees represents a significant financing component.

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Reimbursable Costs from Affiliates

The existing Managed Programs reimburse us in cash for certain personnel and overhead costs that we incur on their behalf. For CPA:18 – Global, such costs (excluding those related to our legal transactions group, our senior management, and our investments team) are charged to CPA:18 – Global based on the average of the trailing 12-month aggregate reported revenues of the Managed Programs and us, and personnel costs are capped at 1.0 % of CPA:18 – Global’s pro rata lease revenues for 2021, 2020, and 2019; for the legal transactions group, costs are charged according to a fee schedule. For the CWI REITs, the reimbursements were based on actual expenses incurred, excluding those related to our senior management, and allocated between the CWI REITs based on the percentage of their total pro rata hotel revenues for the most recently completed quarter. Reimbursements from the CWI REITs ceased following the closing of the CWI 1 and CWI 2 Merger on April 13, 2020; after that date, we began recording reimbursements from WLT pursuant to a transition services agreement (described below) based on actual expenses incurred. On October 13, 2021, all services provided under the transition services agreement were terminated. For CESH, reimbursements are based on actual expenses incurred.

Distributions of Available Cash

We are entitled to receive distributions of up to 10 % of the Available Cash (as defined in CPA:18 – Global’s partnership agreement) from the operating partnerships of CPA:18 – Global, payable quarterly in arrears. After completion of the CWI 1 and CWI 2 Merger on April 13, 2020, we no longer receive distributions of Available Cash from CWI 1 and CWI 2. Prior to the closing of the CWI 1 and CWI 2 Merger, we were required to pay 20 % and 25 % of such distributions to the subadvisors of CWI 1 and CWI 2, respectively.

Back-End Fees and Interests in the Managed Programs

Under our advisory agreements with certain of the Managed Programs, we may also receive compensation in connection with providing liquidity events for their stockholders. Such back-end fees or interests include or may include disposition fees, interests in disposition proceeds, and distributions related to ownership of shares or limited partnership units in the Managed Programs. On August 31, 2021, CPA:18 – Global reported that its independent directors intended to begin the process of evaluating possible liquidity alternatives for its shareholders, including a transaction involving us or one of our subsidiaries. The timing and form of any liquidity event is at the discretion of the special committee composed of CPA:18 – Global’s independent directors. Therefore, there can be no assurance as to whether or when any back-end fees or interests will be realized. Back-end fees and interests related to the CWI 1 and CWI 2 Merger are described below.

Other Transactions with Affiliates

CWI 1 and CWI 2 Merger

On October 22, 2019, CWI 1 and CWI 2 announced that they had entered into a definitive merger agreement under which the two companies intended to merge in an all-stock transaction, with CWI 2 as the surviving entity. The CWI 1 and CWI 2 Merger was approved by the stockholders of CWI 1 and CWI 2 on April 8, 2020 and closed on April 13, 2020. Subsequently, CWI 2 was renamed WLT, as described in Note 1 . In connection with the CWI 1 and CWI 2 Merger, we entered into an internalization agreement and a transition services agreement. Immediately following the closing of the CWI 1 and CWI 2 Merger, (i) the advisory agreements with each of CWI 1 and CWI 2 and each of their respective operating partnerships terminated, (ii) the subadvisory agreements with the subadvisors for CWI 1 and CWI 2 were terminated, (iii) pursuant to the internalization agreement, two of our representatives were appointed to the board of directors of WLT (however both representatives resigned from the board of directors of WLT on April 29, 2020), and (iv) we provided certain transition services at cost to WLT, pursuant to a transition services agreement. On October 13, 2021, all services provided under the transition services agreement were terminated.

In accordance with the merger agreement, at the effective time of the CWI 1 and CWI 2 Merger, each issued and outstanding share of CWI 1’s common stock (or fraction thereof), was converted into the right to receive 0.9106 shares (the “exchange ratio”) of CWI 2 Class A common stock. As a result, we exchanged 6,074,046 shares of CWI 1 common stock for 5,531,025 shares of CWI 2 Class A common stock.

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Pursuant to the internalization agreement, the operating partnerships of each of CWI 1 and CWI 2 redeemed the special general partner interests that we previously held, for which we received 1,300,000 shares of CWI 2 preferred stock with a liquidation preference of $ 50.00 per share and 2,840,549 shares in CWI 2 Class A common stock (which was a non-cash investing activity). In connection with this redemption, we recognized a non-cash net gain on sale of $ 33.0 million, which was included within (Losses) earnings from equity method investments in the consolidated statements of income for the year ended December 31, 2020. This net gain on sale was recorded based on:

• a fair value of $ 46.3 million for the 1,300,000 shares of CWI 2 preferred stock that we received ( Note 8 );

• a fair value of $ 11.6 million for the 2,840,549 shares in CWI 2 common stock that we received ( Note 7 );

• a gain recognized on the redemption of the noncontrolling interest in the special general partner interests previously held by the respective subadvisors for CWI 1 and CWI 2 of $ 9.9 million (which is included within Net income attributable to noncontrolling interests in our consolidated statements of income and Redemption of noncontrolling interest in our consolidated statements of equity);

• an allocation of $ 34.3 million of goodwill within our Investment Management segment in accordance with ASC 350, Intangibles — goodwill and other , since the WLT management internalization resulted in a sale of a portion of our Investment Management business (the allocation of goodwill was based on the relative fair value of the portion of the Investment Management business sold) ( Note 6 ); and

• the carrying value of our previously held equity investments in the operating partnerships of CWI 1 and CWI 2 ( Note 7 ), which totaled $ 0.5 million on the date of the merger.

We accounted for our investment in shares of WLT (formerly CWI 2) preferred stock as available-for-sale debt securities, which is included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 3 because we primarily used a discounted cash flow valuation model that incorporates unobservable inputs to determine its fair value. In January 2022, WLT redeemed in full our 1,300,000 shares of its preferred stock for gross proceeds of $ 65.0 million (based on the liquidation preference of $ 50.00 per share, as described above) ( Note 17 ). Since this redemption was based on market conditions that existed as of December 31, 2021, during the year ended December 31, 2021, we recognized an unrealized gain on our investment in preferred shares of WLT of $ 18.7 million, which was recognized within Other comprehensive income (loss) in the consolidated financial statements. The fair value of our investment in preferred shares of WLT approximated its carrying value, which was $ 65.0 million and $ 46.3 million as of December 31, 2021 and 2020, respectively ( Note 8 ).

Prior to the closing of the CWI 1 and CWI 2 Merger, we owned 3,836,669 shares of CWI 2 Class A common stock. Following the closing of the CWI 1 and CWI 2 Merger, execution of the internalization agreement, and CWI 2 being renamed WLT, we own 12,208,243 shares of WLT common stock, which we account for as an equity method investment. We follow the hypothetical liquidation at book value (“HLBV”) model and recognize within equity income our proportionate share of WLT’s earnings based on our ownership of common stock of WLT, after giving effect to preferred dividends owed by WLT. We record our investment in shares of common stock of WLT on a one quarter lag. Our investment in shares of common stock of WLT, which is included in Equity method investments in the consolidated financial statements (as an equity method investment in real estate), had a carrying value of $ 33.4 million and $ 44.2 million as of December 31, 2021 and 2020, respectively ( Note 7 ).

Loans to Affiliates

From time to time, our Board has approved the making of secured and unsecured loans or lines of credit from us to certain of the Managed Programs, at our sole discretion, generally for the purpose of facilitating acquisitions or for working capital purposes.

The principal outstanding balance on our line of credit to CPA:18 – Global was $ 21.1 million as of December 31, 2020. CPA:18 – Global repaid the principal outstanding in full during the year ended December 31, 2021. In the fourth quarter of 2021, the maturity date of this line of credit was extended from March 31, 2022 to March 31, 2023. In January 2022, we loaned $ 13.0 million to CPA:18 – Global.

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CPA:17 Merger

On October 31, 2018, Corporate Property Associates 17 – Global Incorporated (“CPA:17 – Global”), a former affiliate, merged with and into one of our wholly owned subsidiaries (the “CPA:17 Merger”), which we accounted for as a business combination under the acquisition method of accounting. The purchase price was allocated to the assets acquired and liabilities assumed, based upon their preliminary fair values at October 31, 2018. We identified certain measurement period adjustments during the third quarter of 2019 that impacted the provisional accounting (resulting in a $ 15.8 million increase in Goodwill ( Note 6 )). As a result, during 2019, we recorded a loss on change in control of interests of $ 8.4 million on the purchase of the remaining interest in a real estate investment from CPA:17 – Global in the CPA:17 Merger ( Note 5 ).

Other

At December 31, 2021, we owned interests in ten jointly owned investments in real estate (including our investment in shares of common stock of WLT, as described above), with the remaining interests held by affiliates or third parties. We account for nine such investments under the equity method of accounting ( Note 7 ) and consolidate the remaining investment. In addition, we owned stock of CPA:18 – Global and limited partnership units of CESH at that date. We accounted for our investment in CPA:18 – Global under the equity method of accounting and elected to account for our investment in CESH under the fair value option ( Note 7 ).

Land, Buildings and Improvements — Operating Leases

Land and buildings leased to others, which are subject to operating leases, and real estate under construction, are summarized as follows (in thousands):

			December 31,
			2021						2020
Land			$	2,151,327					$	2,012,688
Buildings and improvements			9,525,858						8,724,064
Real estate under construction			114,549						119,391
Less: Accumulated depreciation			( 1,448,020 )						( 1,206,912 )
			$	10,343,714					$	9,649,231

During 2021, the U.S. dollar strengthened against the euro, as the end-of-period rate for the U.S. dollar in relation to the euro decreased by 7.7 % to $ 1.1326 from $ 1.2271 . As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $ 244.1 million from December 31, 2020 to December 31, 2021.

In connection with changes in lease classifications due to extensions of the underlying leases, we reclassified seven properties with an aggregate carrying value of $ 76.9 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases during 2021 ( Note 5 ).

Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $ 286.4 million, $ 258.9 million, and $ 229.0 million for the years ended December 31, 2021, 2020, and 2019, respectively.

During 2021, we determined that the tenant/seller in the January 2020 acquisition of an industrial facility in Aurora, Oregon, would not be able to secure an easement on the property. As a result, the tenant/seller forfeited $ 5.0 million of the initial purchase price that we held back at the time of acquisition, the release of which was contingent on securing the easement. Since we previously accounted for this as a contingent liability and included the $ 5.0 million holdback within our capitalized real estate, we reduced the carrying value of Land, buildings and improvements subject to operating leases by this amount during 2021 and removed the corresponding liability from Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets.

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Acquisitions of Real Estate During 2021

During 2021, we entered into the following investments, which were deemed to be real estate asset acquisitions (dollars in thousands):

Property Location(s)						Number of Properties						Date of Acquisition						Property Type						Total Capitalized Costs (a)
Grove City, Ohio, and Anderson, South Carolina						2						2/2/2021						Warehouse						$	19,129
Various, New Jersey and Pennsylvania (b)						10						2/11/2021						Retail; Office						55,115
Central Valley, California (c)						4						2/11/2021						Warehouse; Land						75,008
Various, France (d) (e)						3						4/1/2021						Retail						119,341
Searcy, Arkansas						1						4/14/2021						Industrial						14,038
Detroit, Michigan						1						4/27/2021						Warehouse						52,810
Solihull, United Kingdom (d) (e)						1						5/4/2021						Warehouse						194,954
New Rochelle, New York						1						5/5/2021						Student Housing (Net Lease)						26,109
Groveport, Ohio						1						5/5/2021						Industrial						27,133
Dakota, Illinois						1						5/12/2021						Industrial						65,043
San Jose, California						1						5/13/2021						Industrial						51,949
Opelika, Alabama						1						6/7/2021						Warehouse						48,897
Niles and Elk Grove Village, Illinois; and Guelph, Canada						3						6/9/2021						Warehouse						42,829
Rome, New York						1						6/10/2021						Warehouse						44,781
St. Louis, Missouri						1						8/2/2021						Office						7,924
Frankfort, Indiana						1						8/26/2021						Warehouse						113,544
Various, United States (f)						6						9/1/2021						Land						17,396
Rogers, Minnesota						1						9/9/2021						Warehouse						26,531
Chattanooga, Tennessee						2						10/19/2021						Industrial						40,728
Mankato, Minnesota						1						11/12/2021						Warehouse						17,665
Various, Denmark (e)						11						12/7/2021						Retail						46,129
Lawrence, Kansas						1						12/9/2021						Industrial						25,728
Various, Poland (d) (e)						7						12/15/2021						Retail						74,345
Cary, Illinois						1						12/28/2021						Industrial						44,399
Various, Netherlands (e)						5						12/29/2021						Retail						51,636
Various, New Jersey and Pennsylvania (g)						5						Various						Outdoor Advertising						3,989
						73																		$	1,307,150

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(a) This table excludes the sale-leasebacks classified as loans receivable completed during 2021 ( Note 5 ).

(b) This acquisition is comprised of seven retail facilities and three office facilities.

(c) This acquisition is comprised of two warehouse facilities and two parcels of land.

(d) We also recorded estimated deferred tax liabilities of (i) $ 8.8 million on the investment in France, (ii) $ 3.6 million on the investment in the United Kingdom, and (iii) $ 0.7 million on the investment in Poland, with corresponding increases to the asset values, due to temporary tax and GAAP differences established in connection with the acquisitions.

(e) Amount reflects the applicable exchange rate on the date of transaction.

(f) This acquisition is compromised of the land under buildings we already own.

(g) We entered into an agreement to fund loans for certain outdoor advertising infrastructure. At the end of the loan term, we will acquire the properties. In accordance with ASC 810, Consolidation , we determined that these loans would be consolidated.

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The aggregate purchase price allocation for investments disclosed above is as follows (dollars in thousands):

			Total Capitalized Costs
Land			$	190,968
Buildings and improvements			946,908
Intangibles:
In-place lease (weighted-average expected life of 20.7 years)			198,869
Below-market rent (weighted-average expected life of 11.1 years)			( 9,995 )
Right-of-use assets:
Land lease right-of-use assets			5,979
Above-market ground lease intangibles, net			( 4,155 )
Prepaid rent liabilities			( 15,445 )
Operating lease liabilities			( 5,979 )
			$	1,307,150

Acquisitions of Real Estate During 2020 — We entered into 14 investments, which were deemed to be real estate asset acquisitions, at a total cost of $ 661.4 million, including land of $ 105.4 million, buildings of $ 449.4 million, and net lease intangibles of $ 106.6 million.

Acquisitions of Real Estate During 2019 — We entered into 23 investments, which were deemed to be real estate asset acquisitions, at a total cost of $ 737.5 million, including land of $ 86.3 million, buildings of $ 523.3 million, net lease intangibles of $ 134.9 million, a prepaid rent liability of $ 6.1 million, a debt premium of $ 0.8 million (related to the non-recourse mortgage loan assumed in connection with an acquisition), and net other liabilities assumed of $ 0.1 million.

Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable.

Real Estate Under Construction

During 2021, we capitalized real estate under construction totaling $ 83.3 million. The number of construction projects in progress with balances included in real estate under construction was six and five as of December 31, 2021 and 2020, respectively. Aggregate unfunded commitments totaled approximately $ 55.3 million and $ 81.8 million as of December 31, 2021 and 2020, respectively.

During 2021, we completed the following construction projects (dollars in thousands):

Property Location(s)

Primary Transaction Type

Number of Properties

Date of Completion

Property Type

Total Capitalized Costs (a)

Mason, Ohio

Expansion

1

1/15/2021

Office

$

2,428

Langen, Germany (a)

Build-to-Suit

1

2/4/2021

Industrial

52,719

San Donato Milanese, Italy (a)

Renovation

1

6/30/2021

Retail; Office

7,244

Whitehall, Pennsylvania

Redevelopment

1

8/18/2021

Warehouse

25,769

4

$

88,160

__________

(a) Amount reflects the applicable exchange rate on the date of transaction.

During 2020, we completed five construction projects, at a total cost of $ 171.2 million.

During 2019, we completed seven construction projects, at a total cost of $ 122.5 million.

During 2021, we committed to fund six build-to-suit or expansion projects totaling $ 63.5 million (based on the exchange rate of the euro at December 31, 2021, as applicable). We currently expect to complete the projects in 2022 and 2023.

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Capitalized interest incurred during construction was $ 2.5 million, $ 2.9 million, and $ 2.5 million for the years ended December 31, 2021, 2020, and 2019 respectively, which reduces Interest expense in the consolidated statements of income.

Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable.

Dispositions of Properties

During 2021, we sold 16 properties, which were classified as Land, buildings and improvements subject to operating leases. As a result, the carrying value of our Land, buildings and improvements subject to operating leases decreased by $ 62.6 million from December 31, 2020 to December 31, 2021.

Lease Termination Income and Other

2021 — For the year ended December 31, 2021, lease termination income and other on our consolidated statements of income included: (i) lease termination income of $ 41.0 million received from a tenant; (ii) other lease-related settlements totaling $ 9.8 million ; and (iii) income from a parking garage attached to one of our net-leased properties totaling $ 1.9 million.

2020 — For the year ended December 31, 2020, lease termination income and other on our consolidated statements of income included: (i) lease-related settlements totaling $ 7.9 million and (ii) income from a parking garage attached to one of our net-leased properties totaling $ 2.3 million.

2019 — For the year ended December 31, 2019, lease termination income and other on our consolidated statements of income included: (i) lease-related settlements totaling $ 24.1 million and (ii) income from a parking garage attached to one of our net-leased properties totaling $ 3.5 million ( Note 5 ).

Leases

Operating Lease Income

Lease income related to operating leases recognized and included in the consolidated statements of income is as follows (in thousands):

			Years Ended December 31,
			2021						2020						2019
Lease income — fixed			$	1,066,250					$	981,430					$	898,111
Lease income — variable (a)			111,188						99,193						89,873
Total operating lease income			$	1,177,438					$	1,080,623					$	987,984

__________

(a) Includes (i) rent increases based on changes in the CPI and other comparable indices and (ii) reimbursements for property taxes, insurance, and common area maintenance services.

Scheduled Future Lease Payments to be Received

Scheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable operating leases at December 31, 2021 are as follows (in thousands):

Years Ending December 31,						Total
2022						$	1,140,093
2023						1,116,058
2024						1,058,713
2025						997,909
2026						946,077
Thereafter						8,154,484
Total						$	13,413,334

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See Note 5 for scheduled future lease payments to be received under non-cancelable direct financing leases.

Lease Cost

Lease costs for operating leases are included in (i) General and administrative expenses (office leases), (ii) Property expenses, excluding reimbursable tenant costs (land leases), and (iii) Reimbursable tenant costs (land leases) in the consolidated statements of income. Certain information related to the total lease cost for operating leases is as follows (in thousands):

			Years Ended December 31,
			2021						2020						2019
Fixed lease cost			$	16,426					$	17,616					$	14,503
Variable lease cost			1,149						1,089						1,186
Total lease cost			$	17,575					$	18,705					$	15,689

During the years ended December 31, 2021, 2020, and 2019, we received sublease income totaling approximately $ 5.1 million, $ 5.5 million, and $ 5.4 million, respectively, which is included in Lease revenues in the consolidated statements of income.

Other Information

Supplemental balance sheet information related to ROU assets and lease liabilities is as follows (dollars in thousands):

									December 31,
			Location on Consolidated Balance Sheets						2021						2020
Operating ROU assets — land leases			In-place lease intangible assets and other						$	106,095					$	119,590
Operating ROU assets — office leases			Other assets, net						59,902						61,137
Total operating ROU assets									$	165,997					$	180,727
Operating lease liabilities			Accounts payable, accrued expenses and other liabilities						$	146,437					$	151,466
Weighted-average remaining lease term — operating leases									26.1 years						29.2 years
Weighted-average discount rate — operating leases									6.8		%				7.1		%
Number of land lease arrangements									66						68
Number of office space arrangements (a)									4						7
Lease term range (excluding extension options not reasonably certain of being exercised)									< 1 – 100 years						< 1 – 100 years

__________

(a) The leases for our former office spaces in New York expired on January 31, 2021.

Cash paid for operating lease liabilities included in Net cash provided by operating activities totaled $ 13.9 million, $ 15.5 million, and $ 14.6 million for the years ended December 31, 2021, 2020, and 2019, respectively. There are no land or office direct financing leases for which we are the lessee, therefore there are no related ROU assets or lease liabilities.

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Undiscounted Cash Flows

A reconciliation of the undiscounted cash flows for operating leases recorded on the consolidated balance sheet within Accounts payable, accrued expenses and other liabilities as of December 31, 2021 is as follows (in thousands):

Years Ending December 31,						Total
2022						$	14,230
2023						14,246
2024						13,137
2025						13,092
2026						13,034
Thereafter						275,259
Total lease payments						342,998
Less: amount of lease payments representing interest						( 196,561 )
Present value of future lease payments/lease obligations						$	146,437

Land, Buildings and Improvements — Operating Properties

At both December 31, 2021 and 2020, Land, buildings and improvements attributable to operating properties consisted of our investments in ten consolidated self-storage properties and one consolidated hotel. Below is a summary of our Land, buildings and improvements attributable to operating properties (in thousands):

			December 31,
			2021						2020
Land			$	10,452					$	10,452
Buildings and improvements			73,221						73,024
Less: Accumulated depreciation			( 16,750 )						( 14,004 )
			$	66,923					$	69,472

Depreciation expense on our buildings and improvements attributable to operating properties was $ 2.7 million, $ 2.8 million, and $ 6.9 million for the years ended December 31, 2021, 2020, and 2019, respectively.

For the year ended December 31, 2021, Operating property revenues totaling $ 13.5 million were comprised of $ 11.2 million in lease revenues and $ 2.3 million in other income (such as food and beverage revenue) from ten consolidated self-storage properties and one consolidated hotel. For the year ended December 31, 2020, Operating property revenues totaling $ 11.4 million were comprised of $ 9.5 million in lease revenues and $ 1.9 million in other income from ten consolidated self-storage properties and two consolidated hotels. For the year ended December 31, 2019, Operating property revenues totaling $ 50.2 million were comprised of $ 39.5 million in lease revenues and $ 10.7 million in other income from 37 consolidated self-storage properties and two consolidated hotels. We derive self-storage revenue primarily from rents received from customers who rent storage space under month-to-month leases for personal or business use. We derive hotel revenue primarily from room rentals, as well as food, beverage, and other services.

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Assets Held for Sale, Net

Below is a summary of our properties held for sale (in thousands):

			December 31,
			2021						2020
Land, buildings and improvements			$	10,628					$	14,051
In-place lease intangible assets and other			—						12,754
Above-market rent intangible assets			—						518
Accumulated depreciation and amortization			( 2,359 )						( 8,733 )
Assets held for sale, net			$	8,269					$	18,590

At December 31, 2021, we had two properties classified as Assets held for sale, net, with an aggregate carrying value of $ 8.3 million. These properties were sold in January and February 2022 ( Note 17 ). At December 31, 2020 we had four properties classified as Assets held for sale, net, with an aggregated carrying value of $ 18.6 million. These properties were sold in 2021.

Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivables portfolio consists of our Net investments in direct financing leases and loans receivable (net of allowance for credit losses), and deferred acquisition fees. Operating leases are not included in finance receivables. See Note 2 and Note 4 for information on ROU operating lease assets recognized in our consolidated balance sheets.

Finance Receivables

Investments in direct financing leases and loans receivable are summarized as follows (in thousands):

			Maturity Date						December 31,
									2021						2020
Net investments in direct financing leases (a)			N/A						$	572,205					$	711,974
Sale-leaseback transactions accounted for as loans receivable (b)			2038 - 2052						217,229						—
Secured loans receivable (a)			2022 - 2025						24,143						24,143
									$	813,577					$	736,117

__________

(a) Amounts are net of allowance for credit losses, as disclosed below.

(b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Such investments were completed during the year ended December 31, 2021 and are described in the table below under Loans Receivable . Maturity dates reflect the current lease maturity dates.

Net Investments in Direct Financing Leases

Net investments in direct financing leases is summarized as follows (in thousands):

			December 31,
			2021						2020
Lease payments receivable			$	414,002					$	527,691
Unguaranteed residual value			545,896						677,722
			959,898						1,205,413
Less: unearned income			( 370,353 )						( 476,365 )
Less: allowance for credit losses (a)			( 17,340 )						( 17,074 )
			$	572,205					$	711,974

__________

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(a) During the years ended December 31, 2021 and 2020, we recorded a net allowance for credit losses of $ 0.3 million and $ 9.7 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income.

2021 — Income from direct financing leases, which is included in Income from direct financing leases and loans receivable in the consolidated financial statements, was $ 63.2 million for the year ended December 31, 2021. During the year ended December 31, 2021, we sold four properties accounted for as direct financing leases that had an aggregate net carrying value of $ 35.8 million. During the year ended December 31, 2021, we reclassified seven properties with a carrying value of $ 76.9 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases in connection with changes in lease classifications due to extensions of the underlying leases ( Note 4 ). During the year ended December 31, 2021, the U.S. dollar strengthened against the euro, resulting in an $ 23.2 million decrease in the carrying value of Net investments in direct financing leases and loans receivable from December 31, 2020 to December 31, 2021.

2020 — Income from direct financing leases, which is included in Income from direct financing leases and loans receivable in the consolidated financial statements, was $ 73.9 million for the year ended December 31, 2020.

2019 — Income from direct financing leases, which was included in Income from direct financing leases and loans receivable in the consolidated financial statements, was $ 98.4 million for the year ended December 31, 2019.

During the third quarter of 2019, we identified measurement period adjustments that impacted the provisional accounting for an investment classified as net investments in direct financing leases, which was acquired in the CPA:17 Merger on October 31, 2018 ( Note 3 ). Prior to the CPA:17 Merger, we already had a joint interest in this investment and accounted for it under the equity method (subsequent to the CPA:17 Merger, we consolidated this wholly owned investment). As such, the CPA:17 Merger purchase price allocated to this investment decreased by approximately $ 21.0 million. In addition, we recorded a loss on change in control of interests of $ 8.4 million during the third quarter of 2019, reflecting adjustments to the difference between our carrying value and the preliminary estimated fair value of this former equity interest on October 31, 2018. We also recorded impairment charges totaling $ 25.8 million on this investment during the third quarter of 2019 ( Note 8 ).

Scheduled Future Lease Payments to be Received

Scheduled future lease payments to be received (exclusive of expenses paid by tenants, percentage of sales rents, and future CPI-based adjustments) under non-cancelable direct financing leases at December 31, 2021 are as follows (in thousands):

Years Ending December 31,						Total
2022						$	57,056
2023						55,840
2024						52,535
2025						45,808
2026						44,347
Thereafter						158,416
Total						$	414,002

See Note 4 for scheduled future lease payments to be received under non-cancelable operating leases.

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Loans Receivable

During 2021, we entered into the following sale-leasebacks, which were deemed to be loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases (dollars in thousands):

Property Location(s)						Number of Properties						Date of Acquisition						Property Type						Total Investment
Various, Germany and Czech Republic						4						12/20/2021						Industrial						$	29,166
Various, Netherlands						9						12/29/2021						Retail						43,731
Santa Rosa, California; Pocatello, Idaho; and White City, Oregon						3						12/29/2021						Industrial						144,103
						16																		$	217,000

Dollar amounts are based on the exchange rates of the foreign currencies on the dates of activity, as applicable.

At both December 31, 2021 and 2020, we had two secured loans receivable related to a domestic investment with an aggregate carrying value of $ 24.1 million (net of allowance for credit losses of $ 12.6 million), which are included in Net investments in direct financing leases and loans receivable in the consolidated financial statements. In the first quarter of 2021, we entered into an agreement with the borrowers, who agreed to pay us at maturity a total of $ 3.7 million of unpaid interest due over the previous year. We did not recognize this interest in the consolidated financial statements due to uncertainty of collectibility. Earnings from our loans receivable are included in Income from direct financing leases and loans receivable in the consolidated financial statements, and totaled $ 4.3 million, $ 1.0 million, and $ 6.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. We did not recognize income from our secured loans receivable during the second, third, or fourth quarters of 2020, since such income was deemed uncollectible as a result of the COVID-19 pandemic ( Note 2 ).

Credit Quality of Finance Receivables

We generally invest in facilities that we believe are critical to a tenant’s business and therefore have a lower risk of tenant default. At both December 31, 2021 and 2020, other than uncollected income from our secured loans receivable (as noted above), no material balances of our finance receivables were past due. Other than the lease extensions noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the year ended December 31, 2021.

We evaluate the credit quality of our finance receivables utilizing an internal five-point credit rating scale, with one representing the highest credit quality and five representing the lowest. A credit quality of one through three indicates a range of investment grade to stable. A credit quality of four through five indicates a range of inclusion on the watch list to risk of default. The credit quality evaluation of our finance receivables is updated quarterly. We believe the credit quality of our deferred acquisition fees receivable falls under category one, as CPA:18 – Global is expected to have the available cash to make such payments ( Note 3 ).

A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable ( Note 3 ) and allowance for credit losses, is as follows (dollars in thousands):

						Number of Tenants / Obligors at December 31,												Carrying Value at December 31,
Internal Credit Quality Indicator						2021						2020						2021						2020
1 – 3						17						18						$	703,280					$	587,103
4						9						9						140,230						141,944
5						—						2						—						36,737
																		$	843,510					$	765,784

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We have recorded net lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from three years to 48 years. In-place lease intangibles, at cost are included in In-place lease intangible assets and other in the consolidated financial statements. Above-market rent intangibles, at cost are included in Above-market rent intangible assets in the consolidated financial statements. Accumulated amortization of in-place lease and above-market rent intangibles is included in Accumulated depreciation and amortization in the consolidated financial statements. Internal-use software development and trade name intangibles are included in Other assets, net in the consolidated financial statements. Below-market rent and below-market purchase option intangibles are included in Below-market rent and other intangible liabilities, net in the consolidated financial statements.

In connection with certain business combinations, we recorded goodwill as a result of consideration exceeding the fair values of the assets acquired and liabilities assumed ( Note 2 ). The goodwill was attributed to our Real Estate reporting unit as it relates to the real estate assets we acquired in such business combinations. The following table presents a reconciliation of our goodwill (in thousands):

			Real Estate						Investment Management						Total
Balance at January 1, 2019			$	857,337					$	63,607					$	920,944
CPA:17 Merger measurement period adjustments ( Note 3 )			15,802						—						15,802
Foreign currency translation adjustments			( 2,058 )						—						( 2,058 )
Balance at December 31, 2019			871,081						63,607						934,688
Foreign currency translation adjustments			10,403						—						10,403
Allocation of goodwill based on portion of Investment Management business sold ( Note 3 )			—						( 34,273 )						( 34,273 )
Balance at December 31, 2020			881,484						29,334						910,818
Foreign currency translation adjustments			( 9,289 )						—						( 9,289 )
Balance at December 31, 2021			$	872,195					$	29,334					$	901,529

Current accounting guidance requires that we test for the recoverability of goodwill at the reporting unit level. The test for recoverability must be conducted at least annually, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. We performed our annual test for impairment in October 2021 for goodwill recorded in both segments and found no impairment indicated.

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Intangible assets, intangible liabilities, and goodwill are summarized as follows (in thousands):

			December 31,
			2021																		2020
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization						Net Carrying Amount
Finite-Lived Intangible Assets
Internal-use software development costs			$	19,553					$	( 18,682 )					$	871					$	19,204					$	( 15,711 )					$	3,493
Trade name			3,975						( 3,581 )						394						3,975						( 2,786 )						1,189
			23,528						( 22,263 )						1,265						23,179						( 18,497 )						4,682
Lease Intangibles:
In-place lease			2,279,905						( 934,663 )						1,345,242						2,181,584						( 828,219 )						1,353,365
Above-market rent			843,410						( 489,861 )						353,549						881,159						( 440,952 )						440,207
			3,123,315						( 1,424,524 )						1,698,791						3,062,743						( 1,269,171 )						1,793,572
Indefinite-Lived Goodwill
Goodwill			901,529						—						901,529						910,818						—						910,818
Total intangible assets			$	4,048,372					$	( 1,446,787 )					$	2,601,585					$	3,996,740					$	( 1,287,668 )					$	2,709,072
Finite-Lived Intangible Liabilities
Below-market rent			$	( 272,483 )					$	105,908					$	( 166,575 )					$	( 270,730 )					$	90,193					$	( 180,537 )
Indefinite-Lived Intangible Liabilities
Below-market purchase option			( 16,711 )						—						( 16,711 )						( 16,711 )						—						( 16,711 )
Total intangible liabilities			$	( 289,194 )					$	105,908					$	( 183,286 )					$	( 287,441 )					$	90,193					$	( 197,248 )

During 2021, the U.S. dollar strengthened against the euro, resulting in an decrease of $ 43.9 million in the carrying value of our net intangible assets from December 31, 2020 to December 31, 2021. Net amortization of intangibles, including the effect of foreign currency translation, was $ 236.6 million, $ 226.2 million, and $ 272.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. Amortization of below-market rent and above-market rent intangibles is recorded as an adjustment to Lease revenues and amortization of internal-use software development, trade name, and in-place lease intangibles is included in Depreciation and amortization.

Based on the intangible assets and liabilities recorded at December 31, 2021, scheduled annual net amortization of intangibles for each of the next five calendar years and thereafter is as follows (in thousands):

Years Ending December 31,						Net Decrease in Lease Revenues						Increase to Amortization						Total
2022						$	41,856					$	157,727					$	199,583
2023						34,771						146,690						181,461
2024						33,241						132,148						165,389
2025						28,451						122,199						150,650
2026						24,617						110,791						135,408
Thereafter						24,038						676,952						700,990
Total						$	186,974					$	1,346,507					$	1,533,481

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We own interests in (i) the Managed Programs, (ii) certain unconsolidated real estate investments with CPA:18 – Global and third parties, and (iii) WLT. We account for our interests in these investments under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences) or at fair value by electing the equity method fair value option available under GAAP.

We classify distributions received from equity method investments using the cumulative earnings approach. In general, distributions received are considered returns on the investment and classified as cash inflows from operating activities. If, however, the investor’s cumulative distributions received, less distributions received in prior periods determined to be returns of investment, exceeds cumulative equity in earnings recognized, the excess is considered a return of investment and is classified as cash inflows from investing activities.

Managed Programs

We own interests in the Managed Programs and account for these interests under the equity method because, as their advisor, we do not exert control over, but we do have the ability to exercise significant influence over, the Managed Programs. Operating results of the Managed Programs are included in the Investment Management segment.

The following table sets forth certain information about our investments in the Managed Programs (dollars in thousands):

						% of Outstanding Shares Owned at												Carrying Amount of Investment at
						December 31,												December 31,
Fund						2021						2020						2021						2020
CPA:18 – Global (a)						5.578		%				4.569		%				$	60,836					$	51,949
CPA:18 – Global operating partnership						0.034		%				0.034		%				209						209
CESH (b)						2.430		%				2.430		%				3,689						4,399
																		$	64,734					$	56,557

__________

(a) During 2021, we received asset management revenue from CPA:18 – Global in shares of its common stock, which increased our ownership percentage in CPA:18 – Global ( Note 3 ).

(b) Investment is accounted for at fair value.

CPA:18 – Global — We received distributions from this investment during the years ended December 31, 2021, 2020, and 2019 of $ 3.5 million, $ 2.6 million, and $ 3.3 million, respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the years ended December 31, 2021, 2020, and 2019 of $ 7.3 million, $ 7.2 million, and $ 8.1 million, respectively ( Note 3 ).

CWI 1 — We received distributions from this investment during the years ended December 31, 2020 (through April 13, 2020, the date of the CWI 1 and CWI 2 Merger ( Note 3 )) and 2019 of $ 0.8 million and $ 2.7 million, respectively. We received distributions from our investment in the CWI 1 operating partnership during the year ended December 31, 2019 of $ 7.1 million ( Note 3 ). We did not receive such a distribution during 2020 (through April 13, 2020), as a result of the adverse effect of the COVID-19 pandemic on the operations of CWI 1.

CWI 2 — We received distributions from this investment during the years ended December 31, 2020 (through April 13, 2020, the date of the CWI 1 and CWI 2 Merger ( Note 3 )) and 2019 of $ 0.5 million and $ 1.6 million, respectively. We received distributions from our investment in the CWI 2 operating partnership during the year ended December 31, 2019 of $ 6.3 million ( Note 3 ). We did not receive such a distribution during 2020 (through April 13, 2020), as a result of the adverse effect of the COVID-19 pandemic on the operations of CWI 2.

CESH — We have elected to account for our investment in CESH at fair value by selecting the equity method fair value option available under GAAP. We record our investment in CESH on a one quarter lag; therefore, the balance of our equity method investment in CESH recorded as of December 31, 2021 is based on the estimated fair value of our investment as of September 30, 2021. We received distributions from this investment during the year ended December 31, 2021 of $ 1.3 million. We did no t receive distributions from this investment during the years ended December 31, 2020 or 2019.

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At December 31, 2021 and 2020, the aggregate unamortized basis differences on our equity method investments in the Managed Programs were $ 23.3 million and $ 18.8 million, respectively.

Interests in Other Unconsolidated Real Estate Investments and WLT

We own equity interests in properties that are generally leased to companies through noncontrolling interests in partnerships and limited liability companies that we do not control but over which we exercise significant influence. The underlying investments are jointly owned with affiliates or third parties. In addition, we own shares of WLT common stock, as described in Note 3 . We account for these investments under the equity method of accounting. Investments in unconsolidated investments are required to be evaluated periodically for impairment. We periodically compare an investment’s carrying value to its estimated fair value and recognize an impairment charge to the extent that the carrying value exceeds fair value and such decline is determined to be other than temporary. Operating results of our unconsolidated real estate investments are included in the Real Estate segment.

The following table sets forth our ownership interests in our equity method investments in real estate, excluding the Managed Programs, and their respective carrying values (dollars in thousands):

												Ownership Interest at						Carrying Value at December 31,
Lessee						Co-owner						December 31, 2021						2021						2020
Las Vegas Retail Complex (a)						Third Party						N/A						$	104,114					$	—
Johnson Self Storage						Third Party						90 %						67,573						68,979
Kesko Senukai (b)						Third Party						70 %						41,955						46,443
WLT (c)						WLT						5 %						33,392						44,182
Harmon Retail Corner (d)						Third Party						15 %						24,435						23,815
State Farm Mutual Automobile Insurance Co. (e)						CPA:18 – Global						50 %						7,129						15,475
Apply Sørco AS (f)						CPA:18 – Global						49 %						5,909						7,156
Bank Pekao (b) (g)						CPA:18 – Global						50 %						4,460						17,850
Fortenova Grupa d.d. (b) (h)						CPA:18 – Global						20 %						2,936						2,989
																		$	291,903					$	226,889

__________

(a) See “Las Vegas Retail Complex” below for discussion of this equity method investment in real estate.

(b) The carrying value of this investment is affected by fluctuations in the exchange rate of the euro.

(c) Following the closing of the CWI 1 and CWI 2 Merger, we own 12,208,243 shares of common stock of WLT, which we account for as an equity method investment in real estate. We follow the HLBV model for this investment. We record any earnings from our investment in shares of common stock of WLT on a one quarter lag ( Note 3 ). For the years ended December 31, 2021 and 2020, we recognized losses of $ 10.8 million and $ 5.0 million, respectively, from our equity method investment in WLT (due to the adverse impact of the COVID-19 pandemic on its operations), which was recognized within Earnings (losses) from equity method investments in our consolidated statements of income. At December 31, 2021 and 2020, we also owned an investment in preferred shares of WLT ( Note 3 ), which is included in Other assets, net in the consolidated financial statements ( Note 8 ) and was fully redeemed in January 2022 ( Note 17 ).

(d) This investment is reported using the HLBV model, which may be different than pro rata ownership percentages, primarily due to the capital structure of the partnership agreement.

(e) We recognized an other-than-temporary impairment charge of $ 6.8 million on this investment during 2021, as described in Note 8 .

(f) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone.

(g) We recognized our $ 13.2 million proportionate share of an impairment charge recorded on this investment during 2021, which was reflected within (Losses) earnings from equity method investments in our consolidated statements of income. The estimated fair value of the investment declined due to notice of non-renewal of the lease by the current tenant at the international office facility owned by the investment (lease expiration is in May 2023). The fair value measurement was determined by estimating discounted cash flows using two significant unobservable inputs, which were the residual capitalization rate (range of 6.75 % to 7.75 %) and estimated market rents (range of $ 17 to $ 18 per square foot).

(h) In October 2021, one of the properties in this investment was sold for $ 14.1 million, net of selling costs (our proportionate share was $ 2.8 million), and a net gain on sale of $ 2.0 million was recognized (our proportionate share was $ 0.4 million).

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We received aggregate distributions of $ 18.6 million, $ 17.8 million, and $ 17.0 million from our other unconsolidated real estate investments for the years ended December 31, 2021, 2020, and 2019, respectively. At December 31, 2021 and 2020, the aggregate unamortized basis differences on our unconsolidated real estate investments were $ 7.9 million and $ 16.1 million, respectively. This decrease was primarily due to an other-than-temporary impairment charge that we recognized on an equity method investment in real estate during the year ended December 31, 2021, as described above and in Note 8 .

Las Vegas Retail Complex

On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $ 224.9 million for a retail complex in Las Vegas, Nevada, at an interest rate of 6.0 % and term of 36 months. Through December 31, 2021, we funded $ 103.7 million, with the remaining amount expected to be funded over the 15 to 22 months following closing. We hold a purchase option for two net-leased units at the complex upon its completion, as well as an equity purchase option to acquire a 47.5 % equity interest in the partnership that owns the borrower. As of the agreement date, we did not deem the exercise of the purchase options to be reasonably certain.

In accordance with ASC 810, Consolidation , we determined that this loan will not be consolidated, but due to the characteristics of the arrangement (including our participation in expected residual profits), the risks and rewards of the agreement are similar to those associated with an investment in real estate rather than a loan. Therefore, the loan will be treated as an implied investment in real estate (i.e., an equity method investment in real estate) for accounting purposes in accordance with the acquisition, development and construction arrangement sub-section of ASC 310, Receivables . Interest income from this investment was $ 3.0 million for the year ended December 31, 2021, which was recognized within (Losses) earnings from equity method investments in our consolidated statements of income.

The fair value of an asset is defined as the exit price, which is the amount that would either be received when an asset is sold or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy based on the inputs used in measuring fair value. These tiers are: Level 1, for which quoted market prices for identical instruments are available in active markets, such as money market funds, equity securities, and U.S. Treasury securities; Level 2, for which there are inputs other than quoted prices included within Level 1 that are observable for the instrument, such as certain derivative instruments including interest rate caps, interest rate swaps, and foreign currency collars; and Level 3, for securities that do not fall into Level 1 or Level 2 and for which little or no market data exists, therefore requiring us to develop our own assumptions.

Items Measured at Fair Value on a Recurring Basis

The methods and assumptions described below were used to estimate the fair value of each class of financial instrument. For significant Level 3 items, we have also provided the unobservable inputs.

Derivative Assets and Liabilities — Our derivative assets and liabilities, which are included in Other assets, net and Accounts payable, accrued expenses and other liabilities, respectively, in the consolidated financial statements, are comprised of foreign currency collars, interest rate swaps, interest rate caps, and stock warrants ( Note 9 ).

The valuation of our derivative instruments (excluding stock warrants) is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves, spot and forward rates, and implied volatilities. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative instruments for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. These derivative instruments were classified as Level 2 as these instruments are custom, over-the-counter contracts with various bank counterparties that are not traded in an active market.

The stock warrants were measured at fair value using valuation models that incorporate market inputs and our own assumptions about future cash flows. We classified these assets as Level 3 because these assets are not traded in an active market.

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Equity Method Investment in CESH — We have elected to account for our investment in CESH, which is included in Equity method investments in the consolidated financial statements, at fair value by selecting the equity method fair value option available under GAAP ( Note 7 ). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value.

Investment in Shares of Lineage Logistics — We have elected to apply the measurement alternative under ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10) to account for our investment in shares of Lineage Logistics (a cold storage REIT), which is included in Other assets, net in the consolidated financial statements. Under this alternative, the carrying value is adjusted for any impairments or changes in fair value resulting from observable transactions for similar or identical investments in the issuer. We classified this investment as Level 3 because it is not traded in an active market. During the years ended December 31, 2021, 2020, and 2019, we recognized non-cash unrealized gains on our investment in shares of Lineage Logistics totaling $ 76.3 million, $ 48.3 million, and $ 32.9 million, respectively, due to secondary market transactions at a higher price per share, which was recorded within Other gains and (losses) in the consolidated financial statements. In addition, during the year ended December 31, 2021, we received a cash dividend of $ 6.4 million from our investment in shares of Lineage Logistics, which was recorded within Non-operating income in the consolidated financial statements. See Note 14 for further discussion of the impact of Lineage Logistics’s conversion to a REIT during the first quarter of 2020. In addition, in October 2020, we purchased additional shares of Lineage Logistics for $ 95.5 million. The fair value of this investment was $ 366.3 million and $ 290.0 million at December 31, 2021 and 2020, respectively.

Investment in Shares of GCIF — We account for our investment in shares of GCIF, which is included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 2 because we used a quoted price from an inactive market to determine its fair value. During the year ended December 31, 2021, we received liquidating distributions from our investment in shares of GCIF totaling $ 1.5 million, which reduced the cost basis of our investment (in March 2021, GCIF announced its intention to liquidate and to distribute substantially all of its assets). During the year ended December 31, 2021, we redeemed a portion of our investment in shares of GCIF for approximately $ 0.8 million and recognized a net loss of $ 0.1 million, which was included within Other gains and (losses) in the consolidated statements of income. In addition, during the years ended December 31, 2021, 2020, and 2019, we received distributions from our investment in shares of GCIF totaling less than $ 0.1 million, $ 0.6 million, and $ 2.0 million, respectively, which were recorded within Non-operating income in the consolidated financial statements. During the year ended December 31, 2021, we recognized unrealized gains on our investment in shares of GCIF totaling $ 0.6 million, which was recognized within Other gains and (losses) in the consolidated financial statements. The fair value of our investment in shares of GCIF was $ 4.3 million and $ 6.1 million at December 31, 2021 and 2020, respectively.

Investment in Preferred Shares of WLT — We account for our investment in preferred shares of WLT ( Note 3 ), which is included in Other assets, net in the consolidated financial statements, as available-for-sale debt securities at fair value. The fair value was primarily determined by a discounted cash flow approach based on a weighted-average probability analysis of certain redemption options. We classified this investment as Level 3 because the discounted cash flow valuation model incorporates unobservable inputs to determine its fair value, including a cash flow discount rate of 15 % as of December 31, 2020. In January 2022, WLT redeemed in full our 1,300,000 shares of its preferred stock for gross proceeds of $ 65.0 million (based on the liquidation preference of $ 50.00 per share), as described in Note 3 and Note 17 . Since this redemption was based on market conditions that existed as of December 31, 2021, during the year ended December 31, 2021, we recognized an unrealized gain on our investment in preferred shares of WLT of $ 18.7 million, which was recognized within Other comprehensive income (loss) in the consolidated financial statements. During the year ended December 31, 2021, we received cash dividends of $ 4.9 million from our investment in preferred shares of WLT, which was recorded within Non-operating income in the consolidated financial statements. The fair value of our investment in preferred shares of WLT was $ 65.0 million and $ 46.3 million as of December 31, 2021 and 2020, respectively.

We did not have any transfers into or out of Level 1, Level 2, and Level 3 category of measurements during either the years ended December 31, 2021 or 2020. Gains and losses (realized and unrealized) recognized on items measured at fair value on a recurring basis included in earnings are reported within Other gains and (losses) on our consolidated financial statements.

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Our other material financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands):

									December 31, 2021												December 31, 2020
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Senior Unsecured Notes, net (a) (b) (c)			2						$	5,701,913					$	5,984,228					$	5,146,192					$	5,639,586
Non-recourse mortgages, net (a) (b) (d)			3						368,524						369,841						1,145,554						1,148,551

__________

(a) The carrying value of Senior Unsecured Notes, net ( Note 10 ) includes unamortized deferred financing costs of $ 28.7 million and $ 23.9 million at December 31, 2021 and 2020, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of $ 0.1 million and $ 0.4 million at December 31, 2021 and 2020, respectively.

(b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $ 29.2 million and $ 22.6 million at December 31, 2021 and 2020, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $ 0.8 million and $ 4.5 million at December 31, 2021 and 2020, respectively.

(c) We determined the estimated fair value of the Senior Unsecured Notes using observed market prices in an open market, which may experience limited trading volume.

(d) We determined the estimated fair value of our non-recourse mortgage loans using a discounted cash flow model that estimates the present value of the future loan payments by discounting such payments at current estimated market interest rates. The estimated market interest rates consider interest rate risk and the value of the underlying collateral, which includes quality of the collateral, the credit quality of the tenant/obligor, and the time until maturity.

We estimated that our other financial assets and liabilities, including amounts outstanding under our Senior Unsecured Credit Facility ( Note 10 ), but excluding finance receivables ( Note 5 ), had fair values that approximated their carrying values at both December 31, 2021 and 2020.

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

We periodically assess whether there are any indicators that the value of our real estate investments may be impaired or that their carrying value may not be recoverable. Our impairment policies are described in Note 2 .

The following table presents information about assets for which we recorded an impairment charge and that were measured at fair value on a non-recurring basis (in thousands):

			Years Ended December 31,
			2021												2020												2019
			Fair Value Measurements						Impairment Charges						Fair Value Measurements						Impairment Charges						Fair Value Measurements						Impairment Charges
Impairment Charges
Land, buildings and improvements and intangibles			$	29,494					$	24,246					$	31,350					$	35,830					$	1,012					$	1,345
Equity method investments			8,175						6,830						55,245						55,387						—						—
Net investments in direct financing leases			—						—						—						—						33,115						31,194
									$	31,076											$	91,217											$	32,539

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Impairment charges, and their related triggering events and fair value measurements, recognized during 2021, 2020, and 2019 were as follows:

Land, Buildings and Improvements and Intangibles

2021 — During the year ended December 31, 2021, we recognized impairment charges totaling $ 24.2 million on two properties in order to reduce the carrying values of the properties to their estimated fair values, as follows:

• $ 16.3 million on a property due to the existing tenant’s non-renewal of its lease expiring in 2022; the fair value measurement was determined by estimating discounted cash flows using four significant unobservable inputs, which were the cash flow discount rate (range of 7.00 % to 9.00 %), terminal capitalization rate (range of 6.00 % to 7.00 %), estimated market rents (range of $ 10 to $ 11 per square foot), and estimated capital expenditures ($ 100 per square foot); and

• $ 7.9 million on a property due to a lease termination and resulting vacancy; the fair value measurement for the property was based on the sales prices for comparable properties.

2020 — During the year ended December 31, 2020, we recognized impairment charges totaling $ 35.8 million on six properties in order to reduce the carrying values of the properties to their estimated fair values, as follows:

• $ 16.0 million on two properties leased to the same tenant, due to potential property vacancies; the fair value measurements for the properties were determined using a direct capitalization rate analysis based on the probability of vacancy versus the tenant continuing in the lease; the capitalization rate for the various scenarios ranged from 6 % to 11 %;

• $ 12.6 million on an international property due to a tenant bankruptcy; the fair value measurement for the property was determined by using a probability-weighted approach of lease restructure and vacancy scenarios;

• $ 3.4 million on an international property based on its estimated selling price; the property was sold in September 2020;

• $ 2.8 million on an international property due to a lease expiration and resulting vacancy; the fair value measurement for the property approximated its estimated selling price; and

• $ 1.0 million on a property based on its estimated selling price; the property was sold in September 2021.

2019 — During the year ended December 31, 2019, we recognized an impairment charge of $ 1.3 million on a property in order to reduce the carrying value of the property to its estimated fair value. The fair value measurement for this property approximated its estimated selling price, and this property was sold in February 2020.

Equity Method Investments

The other-than-temporary impairment charges described below are reflected within (Losses) earnings from equity method investments in our consolidated statements of income.

2021 — During the year ended December 31, 2021, we recognized an other-than-temporary impairment charge of $ 6.8 million on a jointly owned real estate investment to reduce the carrying value of our investment to its estimated fair value, which declined due to changes in expected cash flows related to the existing tenant’s lease expiration in 2028. The fair value measurement was determined by estimating discounted cash flows using three significant unobservable inputs, which were the cash flow discount rate ( 5.75 %), residual discount rate ( 7.50 %), and residual capitalization rate ( 6.75 %).

2020 — During the year ended December 31, 2020, we recognized other-than-temporary impairment charges of $ 27.8 million and $ 19.3 million on our equity method investments in CWI 1 and CWI 2, respectively, to reduce the carrying values of our investments to their estimated fair values, due to the COVID-19 pandemic, which had an adverse effect on the operations of CWI 1 and CWI 2. The fair value measurements were estimated based on implied asset value changes and changes in market capitalizations for publicly traded lodging REITs, all of which was obtained from third-party market data.

During the year ended December 31, 2020, we recognized an other-than-temporary impairment charge of $ 8.3 million on a jointly owned real estate investment to reduce the carrying value of our investment to its estimated fair value, which declined due to an uncertain probability of lease renewal with the tenant at the international office facility owned by the investment (lease expiration is in May 2023). The fair value measurement was determined by relying on an estimate of the fair market value of the property and the related mortgage loan, both provided by a third party.

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Net Investments in Direct Financing Leases

2019 — During the year ended December 31, 2019, we recognized impairment charges totaling $ 31.2 million on five properties accounted for as Net investments in direct financing leases, primarily due to a lease restructuring, based on the cash flows expected to be derived from the underlying assets (discounted at the rate implicit in the lease), in accordance with ASC 310, Receivables .

Risk Management

In the normal course of our ongoing business operations, we encounter economic risk. There are four main components of economic risk that impact us: interest rate risk, credit risk, market risk, and foreign currency risk. We are primarily subject to interest rate risk on our interest-bearing liabilities, including our Senior Unsecured Credit Facility ( Note 10 ) and unhedged variable-rate non-recourse mortgage loans. Credit risk is the risk of default on our operations and our tenants’ inability or unwillingness to make contractually required payments. Market risk includes changes in the value of our properties and related loans, Senior Unsecured Notes, other securities, and the shares or limited partnership units we hold in the Managed Programs, due to changes in interest rates or other market factors. We own investments in North America, Europe, and Japan and are subject to risks associated with fluctuating foreign currency exchange rates.

Derivative Financial Instruments

When we use derivative instruments, it is generally to reduce our exposure to fluctuations in interest rates and foreign currency exchange rate movements. We have not entered into, and do not plan to enter into, financial instruments for trading or speculative purposes. In addition to entering into derivative instruments on our own behalf, we may also be a party to derivative instruments that are embedded in other contracts, and we may be granted common stock warrants by lessees when structuring lease transactions, which are considered to be derivative instruments. The primary risks related to our use of derivative instruments include a counterparty to a hedging arrangement defaulting on its obligation and a downgrade in the credit quality of a counterparty to such an extent that our ability to sell or assign our side of the hedging transaction is impaired. While we seek to mitigate these risks by entering into hedging arrangements with large financial institutions that we deem to be creditworthy, it is possible that our hedging transactions, which are intended to limit losses, could adversely affect our earnings. Furthermore, if we terminate a hedging arrangement, we may be obligated to pay certain costs, such as transaction or breakage fees. We have established policies and procedures for risk assessment and the approval, reporting, and monitoring of derivative financial instrument activities.

We measure derivative instruments at fair value and record them as assets or liabilities, depending on our rights or obligations under the applicable derivative contract. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For derivatives designated and that qualify as cash flow hedges, the change in fair value of the derivative is recognized in Other comprehensive income (loss) until the hedged item is recognized in earnings. Gains and losses on the cash flow hedges representing hedge components excluded from the assessment of effectiveness are recognized in earnings over the life of the hedge on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. Such gains and losses are recorded within Other gains and (losses) or Interest expense in our consolidated statements of income. The earnings recognition of excluded components is presented in the same line item as the hedged transactions. For derivatives designated and that qualify as a net investment hedge, the change in the fair value and/or the net settlement of the derivative is reported in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive income (loss) into earnings (within Gain on sale of real estate, net, in our consolidated statements of income) when the hedged net investment is either sold or substantially liquidated.

All derivative transactions with an individual counterparty are governed by a master International Swap and Derivatives Association agreement, which can be considered as a master netting arrangement; however, we report all our derivative instruments on a gross basis on our consolidated financial statements. At both December 31, 2021 and 2020, no cash collateral had been posted nor received for any of our derivative positions.

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The following table sets forth certain information regarding our derivative instruments (in thousands):

Derivatives Designated as Hedging Instruments						Balance Sheet Location						Asset Derivatives Fair Value at												Liability Derivatives Fair Value at
												December 31, 2021						December 31, 2020						December 31, 2021						December 31, 2020
Foreign currency collars						Other assets, net						$	19,484					$	3,489					$	—					$	—
Interest rate caps						Other assets, net						1						—						—						—
Foreign currency collars						Accounts payable, accrued expenses and other liabilities						—						—						( 1,311 )						( 15,122 )
Interest rate swaps						Accounts payable, accrued expenses and other liabilities						—						—						( 908 )						( 5,859 )
												19,485						3,489						( 2,219 )						( 20,981 )
Derivatives Not Designated as Hedging Instruments
Stock warrants						Other assets, net						4,600						5,800						—						—
												4,600						5,800						—						—
Total derivatives												$	24,085					$	9,289					$	( 2,219 )					$	( 20,981 )

The following tables present the impact of our derivative instruments in the consolidated financial statements (in thousands):

						Amount of Gain (Loss) Recognized on Derivatives in Other Comprehensive (Loss) Income (a)
						Years Ended December 31,
Derivatives in Cash Flow Hedging Relationships						2021						2020						2019
Foreign currency collars						$	29,805					$	( 24,818 )					$	5,997
Interest rate swaps						4,198						( 1,553 )						( 1,666 )
Interest rate caps						6						6						219
Foreign currency forward contracts						—						( 5,272 )						( 4,253 )
Derivatives in Net Investment Hedging Relationships (b)
Foreign currency collars						—						9						10
Foreign currency forward contracts						—						—						7
Total						$	34,009					$	( 31,628 )					$	314

												Amount of Gain (Loss) on Derivatives Reclassified from Other Comprehensive (Loss) Income
Derivatives in Cash Flow Hedging Relationships						Location of Gain (Loss) Recognized in Income						Years Ended December 31,
												2021						2020						2019
Interest rate swaps and caps (c)						Interest expense						$	( 932 )					$	( 1,818 )					$	( 2,256 )
Foreign currency collars						Non-operating income						854						4,956						5,759
Foreign currency forward contracts						Non-operating income						—						5,716						9,582
Total												$	( 78 )					$	8,854					$	13,085

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(a) Excludes net gains of $ 1.3 million, net losses of $ 0.3 million, and net losses of $ 1.4 million recognized on unconsolidated jointly owned investments for the years ended December 31, 2021, 2020, and 2019, respectively.

(b) The changes in fair value of these contracts are reported in the foreign currency translation adjustment section of Other comprehensive income (loss).

(c) Amount for the year ended December 31, 2021 excludes other comprehensive income totaling $ 3.1 million that was released from the consolidated financial statements (along with the related liability balances) upon the termination of interest rate swaps in connection with certain prepayments of non-recourse mortgage loans during the period ( Note 10 ).

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Amounts reported in Other comprehensive income (loss) related to interest rate derivative contracts will be reclassified to Interest expense as interest is incurred on our variable-rate debt. Amounts reported in Other comprehensive income (loss) related to foreign currency derivative contracts will be reclassified to Non-operating income when the hedged foreign currency contracts are settled. As of December 31, 2021, we estimate that an additional $ 0.5 million and $ 7.6 million will be reclassified as Interest expense and Non-operating income, respectively, during the next 12 months.

The following table presents the impact of our derivative instruments in the consolidated financial statements (in thousands):

												Amount of Gain (Loss) on Derivatives Recognized in Income
Derivatives Not in Cash Flow Hedging Relationships						Location of Gain (Loss) Recognized in Income						Years Ended December 31,
												2021						2020						2019
Foreign currency collars						Non-operating income						$	1,503					$	( 2,477 )					$	184
Stock warrants						Other gains and (losses)						( 1,200 )						800						( 500 )
Interest rate swaps						Other gains and (losses)						—						106						( 118 )
Foreign currency forward contracts						Non-operating income						—						( 43 )						575
Interest rate swaps						Interest expense						—						—						265
Derivatives in Cash Flow Hedging Relationships
Interest rate swaps						Interest expense						1,592						2,132						( 941 )
Interest rate caps						Interest expense						—						—						( 220 )
Foreign currency forward contracts						Other gains and (losses)						—						—						( 132 )
Foreign currency collars						Other gains and (losses)						—						—						7
Total												$	1,895					$	518					$	( 880 )

See below for information on our purposes for entering into derivative instruments.

Interest Rate Swaps and Caps

We are exposed to the impact of interest rate changes primarily through our borrowing activities. To limit this exposure, we generally seek long-term debt financing on a fixed-rate basis. However, from time to time, we or our investment partners have obtained, and may in the future obtain, variable-rate, non-recourse mortgage loans and, as a result, we have entered into, and may continue to enter into, interest rate swap agreements or interest rate cap agreements with counterparties. Interest rate swaps, which effectively convert the variable-rate debt service obligations of a loan to a fixed rate, are agreements in which one party exchanges a stream of interest payments for a counterparty’s stream of cash flow over a specific period. The notional, or face, amount on which the swaps are based is not exchanged. Interest rate caps limit the effective borrowing rate of variable-rate debt obligations while allowing participants to share in downward shifts in interest rates. Our objective in using these derivatives is to limit our exposure to interest rate movements.

The interest rate swaps and caps that our consolidated subsidiaries had outstanding at December 31, 2021 are summarized as follows (currency in thousands):

Interest Rate Derivatives						Number of Instruments						Notional Amount									Fair Value at December 31, 2021 (a)
Designated as Cash Flow Hedging Instruments
Interest rate swaps						2						47,199			EUR						$	( 761 )
Interest rate swap						1						16,343			USD						( 147 )
Interest rate cap						1						10,764			EUR						1
																					$	( 907 )

__________

(a) Fair value amounts are based on the exchange rate of the euro or British pound sterling at December 31, 2021, as applicable.

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Foreign Currency Collars

We are exposed to foreign currency exchange rate movements, primarily in the euro and, to a lesser extent, the British pound sterling, the Norwegian krone, and certain other currencies. In order to hedge certain of our foreign currency cash flow exposures, we enter into foreign currency collars. A foreign currency collar consists of a written call option and a purchased put option to sell the foreign currency at a range of predetermined exchange rates. A foreign currency collar guarantees that the exchange rate of the currency will not fluctuate beyond the range of the options’ strike prices. Our foreign currency collars have maturities of 62 months or less.

The following table presents the foreign currency derivative contracts we had outstanding at December 31, 2021 (currency in thousands):

Foreign Currency Derivatives						Number of Instruments						Notional Amount									Fair Value at December 31, 2021
Designated as Cash Flow Hedging Instruments
Foreign currency collars						88						323,300			EUR						$	17,762
Foreign currency collars						91						56,180			GBP						411
																					$	18,173

Credit Risk-Related Contingent Features

We measure our credit exposure on a counterparty basis as the net positive aggregate estimated fair value of our derivatives, net of any collateral received. No collateral was received as of December 31, 2021. At December 31, 2021, our total credit exposure and the maximum exposure to any single counterparty was $ 18.4 million and $ 4.9 million, respectively.

Some of the agreements we have with our derivative counterparties contain cross-default provisions that could trigger a declaration of default on our derivative obligations if we default, or are capable of being declared in default, on certain of our indebtedness. At December 31, 2021, we had not been declared in default on any of our derivative obligations. The estimated fair value of our derivatives in a net liability position was $ 2.2 million and $ 25.1 million at December 31, 2021 and 2020, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at December 31, 2021 or 2020, we could have been required to settle our obligations under these agreements at their aggregate termination value of $ 2.3 million and $ 25.6 million, respectively.

Net Investment Hedges

Borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in Note 10 ) denominated in euro, British pounds sterling, or Japanese yen are designated as, and are effective as, economic hedges of our net investments in foreign entities.

Exchange rate variations impact our financial results because the financial results of our foreign subsidiaries are translated to U.S. dollars each period, with the effect of exchange rate variations being recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. As a result, changes in the value of our borrowings under our euro-denominated senior notes and changes in the value of our euro, Japanese yen, and British pound sterling borrowings under our Senior Unsecured Credit Facility, related to changes in the spot rates, will be reported in the same manner as foreign currency translation adjustments, which are recorded in Other comprehensive income (loss) as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $ 255.9 million, $( 280.4 ) million, and $ 33.4 million for the years ended December 31, 2021, 2020, and 2019, respectively.

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Senior Unsecured Credit Facility

On February 20, 2020, we entered into the Fourth Amended and Restated Credit Facility, which has capacity of approximately $ 2.1 billion, comprised of (i) a $ 1.8 billion unsecured revolving credit facility for our working capital needs, acquisitions, and other general corporate purposes (our “Unsecured Revolving Credit Facility”), (ii) a £ 150.0 million term loan (our “Term Loan”), and (iii) a € 96.5 million delayed draw term loan (our “Delayed Draw Term Loan”). We refer to our Term Loan and Delayed Draw Term Loan collectively as the “Unsecured Term Loans” and the entire facility collectively as our “Senior Unsecured Credit Facility.” In December 2021, the Senior Unsecured Credit Facility was amended to transition certain LIBOR-based rates that were discontinued after December 31, 2021 to successor alternative reference rates. The updated reference rates are included in the Senior Unsecured Credit Facility table below. As of December 31, 2021, this reference rate transition impacted only our Senior Unsecured Credit Facility.

The Senior Unsecured Credit Facility includes the ability to borrow in certain currencies other than U.S. dollars and has a maturity date of February 20, 2025. The aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility may be increased up to an amount not to exceed the U.S. dollar equivalent of $ 2.75 billion, subject to the conditions to increase set forth in our credit agreement.

As of both December 31, 2021 and 2020, we have drawn down our Unsecured Term Loans in full.

At December 31, 2021, our Unsecured Revolving Credit Facility had available capacity of approximately $ 1.4 billion (net of amounts reserved for standby letters of credit totaling $ 1.2 million). We incur an annual facility fee of 0.20 % of the total commitment on our Unsecured Revolving Credit Facility, which is included within Interest expense in our consolidated statements of income.

The following table presents a summary of our Senior Unsecured Credit Facility (dollars in thousands):

						Interest Rate at December 31, 2021 (a)						Maturity Date at December 31, 2021						Principal Outstanding Balance at December 31,
Senior Unsecured Credit Facility																		2021						2020
Unsecured Term Loans:
Term Loan — borrowing in British pounds sterling (b) (c) (d)						SONIA + 0.9826 %						2/20/2025						$	202,183					$	204,737
Delayed Draw Term Loan — borrowing in euros (e)						EURIBOR + 0.95 %						2/20/2025						109,296						118,415
																		311,479						323,152
Unsecured Revolving Credit Facility:
Borrowing in euros (e)						EURIBOR + 0.85 %						2/20/2025						205,001						58,901
Borrowing in British pounds sterling (c) (d)						SONIA + 0.8826 %						2/20/2025						184,660						—
Borrowing in Japanese yen (f)						TIBOR + 0.85 %						2/20/2025						20,935						23,380
																		410,596						82,281
																		$	722,075					$	405,433

__________

(a) The applicable interest rate at December 31, 2021 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa2.

(b) Balance excludes unamortized discount of $ 0.9 million and $ 1.2 million at December 31, 2021 and 2020, respectively.

(c) SONIA means Sterling Overnight Index Average.

(d) Interest rate includes both a spread adjustment to the base rate (in connection with the reference rate transition discussed in Note 2 ) and a credit spread.

(e) EURIBOR means Euro Interbank Offered Rate.

(f) TIBOR means Tokyo Interbank Offered Rate.

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Senior Unsecured Notes

As set forth in the table below, we have euro and U.S. dollar-denominated senior unsecured notes outstanding with an aggregate principal balance outstanding of $ 5.8 billion at December 31, 2021 (the “Senior Unsecured Notes”).

On February 25, 2021, we completed an underwritten public offering of $ 425.0 million of 2.250 % Senior Notes due 2033, at a price of 98.722 % of par value. These 2.250 % Senior Notes due 2033 have a 12.1-year term and are scheduled to mature on April 1, 2033. Proceeds from this offering were used to prepay non-recourse mortgage loans totaling $ 427.5 million (including prepayment penalties), as described below.

On March 8, 2021, we completed an underwritten public offering of € 525.0 million of 0.950 % Senior Notes due 2030, at a price of 99.335 % of par value, issued by our wholly owned finance subsidiary, WPC Eurobond B.V., and fully and unconditionally guaranteed by us. These 0.950 % Senior Notes due 2030 have a 9.2-year term and are scheduled to mature on June 1, 2030. Proceeds from this offering were used to redeem the € 500.0 million of 2.0 % Senior Notes due 2023 in March 2021. In connection with this redemption, we paid a “make-whole” amount of $ 26.2 million (based on the exchange rate of the euro as of the date of redemption) and recognized a loss on extinguishment of $ 28.2 million, which is included within Other gains and (losses) on our consolidated statements of income.

On October 15, 2021, we completed an underwritten public offering of $ 350.0 million of 2.450 % Senior Notes due 2032, at a price of 99.048 % of par value, in our inaugural green bond offering. These 2.450 % Senior Notes due 2032 have a 10.3-year term and are scheduled to mature on February 1, 2032.

Interest on the Senior Unsecured Notes is payable annually in arrears for our euro-denominated senior notes and semi-annually for U.S. dollar-denominated senior notes. The Senior Unsecured Notes can be redeemed at par within three months of their respective maturities, or we can call the notes at any time for the principal, accrued interest, and a make-whole amount based upon the applicable government bond yield plus 20 to 35 basis points. The following table presents a summary of our Senior Unsecured Notes outstanding at December 31, 2021 (currency in thousands):

												Principal Amount						Coupon Rate						Maturity Date						Principal Outstanding Balance at December 31,
Senior Unsecured Notes, net (a)						Issue Date																								2021						2020
2.0 % Senior Notes due 2023						1/21/2015						€	500,000					2.0		%				Redeemed						$	—					$	613,550
4.6 % Senior Notes due 2024						3/14/2014						$	500,000					4.6		%				4/1/2024						500,000						500,000
2.25 % Senior Notes due 2024						1/19/2017						€	500,000					2.25		%				7/19/2024						566,300						613,550
4.0 % Senior Notes due 2025						1/26/2015						$	450,000					4.0		%				2/1/2025						450,000						450,000
2.250 % Senior Notes due 2026						10/9/2018						€	500,000					2.250		%				4/9/2026						566,300						613,550
4.25 % Senior Notes due 2026						9/12/2016						$	350,000					4.25		%				10/1/2026						350,000						350,000
2.125 % Senior Notes due 2027						3/6/2018						€	500,000					2.125		%				4/15/2027						566,300						613,550
1.350 % Senior Notes due 2028						9/19/2019						€	500,000					1.350		%				4/15/2028						566,300						613,550
3.850 % Senior Notes due 2029						6/14/2019						$	325,000					3.850		%				7/15/2029						325,000						325,000
0.950 % Senior Notes due 2030						3/8/2021						€	525,000					0.950		%				6/1/2030						594,615						—
2.400 % Senior Notes due 2031						10/14/2020						$	500,000					2.400		%				2/1/2031						500,000						500,000
2.450 % Senior Notes due 2032						10/15/2021						$	350,000					2.450		%				2/1/2032						350,000						—
2.250 % Senior Notes due 2033						2/25/2021						$	425,000					2.250		%				4/1/2033						425,000						—
																														$	5,759,815					$	5,192,750

__________

(a) Aggregate balance excludes unamortized deferred financing costs totaling $ 28.7 million and $ 23.8 million, and unamortized discount totaling $ 29.2 million and $ 22.5 million at December 31, 2021 and 2020, respectively.

In connection with the offering of the 2.250 % Senior Notes due 2033 in February 2021, the 0.950 % Senior Notes due 2030 in March 2021, and the 2.450 % Senior Notes due 2032 in October 2021, we incurred financing costs totaling $ 11.3 million during the year ended December 31, 2021, which are included in the Senior Unsecured Notes, net in the consolidated financial statements and are being amortized to Interest expense over the term of their respective Senior Notes.

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Covenants

The Credit Agreement, each of the Senior Unsecured Notes, and certain of our non-recourse mortgage loan agreements include customary financial maintenance covenants that require us to maintain certain ratios and benchmarks at the end of each quarter. The Credit Agreement also contains various customary affirmative and negative covenants applicable to us and our subsidiaries, subject to materiality and other qualifications, baskets, and exceptions as outlined in the Credit Agreement. We were in compliance with all of these covenants at December 31, 2021.

We may make unlimited Restricted Payments (as defined in the Credit Agreement), as long as no non-payment default or financial covenant default has occurred before, or would on a pro forma basis occur as a result of, the Restricted Payment. In addition, we may make Restricted Payments in an amount required to (i) maintain our REIT status and (ii) as a result of that status, not pay federal or state income or excise tax, as long as the loans under the Credit Agreement have not been accelerated and no bankruptcy or event of default has occurred.

Obligations under the Unsecured Revolving Credit Facility may be declared immediately due and payable upon the occurrence of certain events of default as defined in the Credit Agreement, including failure to pay any principal when due and payable, failure to pay interest within five business days after becoming due, failure to comply with any covenant, representation or condition of any loan document, any change of control, cross-defaults, and certain other events as set forth in the Credit Agreement, with grace periods in some cases.

Non-Recourse Mortgages

Non-recourse mortgages consist of mortgage notes payable, which are collateralized by the assignment of real estate properties. For a list of our encumbered properties, please see Schedule III — Real Estate and Accumulated Depreciation . At December 31, 2021, the weighted-average interest rates for our fixed-rate and variable-rate non-recourse mortgage notes payable were 4.8 % and 2.0 %, respectively, with maturity dates ranging from June 2022 to September 2031.

Repayments During 2021

During the year ended December 31, 2021, we (i) prepaid non-recourse mortgage loans totaling $ 745.1 million, and (ii) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $ 32.7 million. We recognized an aggregate net loss on extinguishment of debt of $ 47.2 million on these repayments, primarily comprised of prepayment penalties totaling $ 45.2 million, which is included within Other gains and (losses) on our consolidated statements of income. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 4.8 %.

Repayments During 2020

During the year ended December 31, 2020, we (i) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $ 225.9 million and (ii) prepaid non-recourse mortgage loans totaling $ 68.5 million. The weighted-average interest rate for these non-recourse mortgage loans on their respective dates of repayment was 5.1 %. Amounts are based on the exchange rate of the related foreign currency as of the date of repayment, as applicable.

Interest Paid

For the years ended December 31, 2021, 2020, and 2019, interest paid was $ 190.8 million, $ 190.6 million, and $ 208.4 million, respectively.

Foreign Currency Exchange Rate Impact

During the year ended December 31, 2021, the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $ 274.8 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2020 to December 31, 2021.

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Scheduled Debt Principal Payments

Scheduled debt principal payments as of December 31, 2021 are as follows (in thousands):

Years Ending December 31,						Total (a)
2022						$	45,787
2023						190,921
2024						1,105,454
2025						1,231,816
2026						948,371
Thereafter through 2033						3,328,988
Total principal payments						6,851,337
Unamortized discount, net (b)						( 30,911 )
Unamortized deferred financing costs						( 28,810 )
Total						$	6,791,616

__________

(a) Certain amounts are based on the applicable foreign currency exchange rate at December 31, 2021.

(b) Represents the unamortized discount on the Senior Unsecured Notes of $ 29.2 million in aggregate, unamortized discount, net, of $ 0.8 million in aggregate primarily resulting from the assumption of property-level debt in connection with business combinations, and unamortized discount of $ 0.9 million on the Term Loan.

At December 31, 2021, we were not involved in any material litigation. Various claims and lawsuits arising in the normal course of business are pending against us. The results of these proceedings are not expected to have a material adverse effect on our consolidated financial position or results of operations.

Common Stock

Dividends paid to stockholders consist of ordinary income, capital gains, return of capital or a combination thereof for income tax purposes. Our dividends per share are summarized as follows:

			Dividends Paid
			During the Years Ended December 31,
			2021						2020						2019
Ordinary income			$	3.3300					$	3.3112					$	3.1939
Return of capital			0.5407						—						0.9194
Capital gains			0.3253						0.8528						0.0187
Total dividends paid (a)			$	4.1960					$	4.1640					$	4.1320

__________

(a) A portion of dividends paid during 2019 has been applied to 2018 for income tax purposes.

During the fourth quarter of 2021, our Board declared a quarterly dividend of $ 1.055 per share, which was paid on January 14, 2022 to stockholders of record as of December 31, 2021.

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Earnings Per Share

U nder current authoritative guidance for determining earnings per share, all nonvested share-based payment awards that contain non-forfeitable rights to dividends are considered to be participating securities and therefore are included in the computation of earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common shares and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. We apply the two-class method of computing earnings per share because during prior years, certain of our nonvested RSUs contained rights to receive non-forfeitable dividend equivalents or dividends. The calculation of earnings per share below excludes the income attributable to the nonvested participating RSUs from the numerator and such nonvested shares in the denominator. The following table summarizes basic and diluted earnings (dollars in thousands) :

			Years Ended December 31,
			2021						2020						2019
Net income attributable to W. P. Carey			$	409,988					$	455,359					$	305,243
Net income attributable to nonvested participating RSUs			—						—						( 77 )
Net income – basic and diluted			$	409,988					$	455,359					$	305,166
Weighted-average shares outstanding – basic			182,486,476						174,504,406						171,001,430
Effect of dilutive securities			640,622						335,022						297,984
Weighted-average shares outstanding – diluted			183,127,098						174,839,428						171,299,414

For the years ended December 31, 2021, 2020, and 2019, there were no potentially dilutive securities excluded from the computation of diluted earnings per share.

At-The-Market Equity Offering Program

On August 9, 2019, we filed a prospectus supplement with the SEC, pursuant to which we may offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $ 750.0 million, through a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks. The related equity sales agreement contemplates that, in addition to issuing shares of our common stock through or to the banks acting as sales agents or as principal for their own accounts, we may also enter into separate forward sale agreements with participating banks or their affiliates acting as forward purchasers. Effective as of that date, we terminated a prior ATM Program that was established on February 27, 2019. Previously, on February 27, 2019, we also terminated an earlier ATM Program that was established on March 1, 2017.

During the year ended December 31, 2021, we issued 4,690,073 shares of our common stock under our current ATM Program at a weighted-average price of $ 73.42 per share for net proceeds of $ 340.0 million. During the year ended December 31, 2020, we issued 2,500 shares of our common stock under our current ATM Program at a weighted-average price of $ 72.05 per share for net proceeds of $ 0.2 million. During the year ended December 31, 2019, we issued 6,672,412 shares of our common stock under our current and former ATM Programs at a weighted-average price of $ 79.70 per share for net proceeds of $ 523.3 million. As of December 31, 2021, $ 272.1 million remained available for issuance under our current ATM Program. See Note 1 7 , Subsequent Events for issuances under our current ATM Program subsequent to December 31, 2021 and through the date of this Report.

Forward Equity Offering

From time to time, we have entered into underwriting agreements and forward sale agreements with syndicates of banks acting as underwriters, forward sellers, and/or forward purchasers in connection with public offerings of our common stock. At the closing of these transactions, the offered shares were borrowed from third parties by the banks acting as forward purchasers and sold to the underwriters for distribution at the respective gross offering prices. As a result of this forward construct, we did not receive any proceeds from the sale of shares at the closing of each offering, but rather at later settlement dates. We have determined that the forward sale agreements meet the criteria for equity classification and are therefore exempt from derivative accounting. We recorded the forward sale agreements at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification.

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We refer to our three forward equity offerings presented below as the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards (collectively, the “Equity Forwards”) (gross offering proceeds at closing in thousands):

			Agreement Date (a)						Shares Offered (b)						Gross Offering Price						Gross Offering Proceeds at Closing						Outstanding Shares as of December 31, 2021
June 2020 Equity Forwards (c)			6/17/2020						5,462,500						$	70.00					$	382,375					—
June 2021 Equity Forwards (c)			6/7/2021						6,037,500						75.30						454,624						—
August 2021 Equity Forwards			8/9/2021						5,175,000						78.00						403,650						3,925,000
																											3,925,000

__________

(a) We expect to settle the Equity Forwards in full within 18 months of the respective agreement dates via physical delivery of the outstanding shares of common stock in exchange for cash proceeds, although we may elect cash settlement or net share settlement for all or a portion of our obligations under the Equity Forwards, subject to certain conditions.

(b) Includes 712,500 , 787,500 , and 675,000 shares of common stock purchased by certain underwriters in connection with the June 2020 Equity Forwards, June 2021 Equity Forwards, and August 2021 Equity Forwards, respectively, upon the exercise of 30-day options to purchase additional shares.

(c) All remaining outstanding shares were settled during the year ended December 31, 2021.

The following table sets forth certain information regarding the settlement of our Equity Forwards during the periods presented (dollars in thousands):

			Years Ended December 31,
			2021						2020
Shares of common stock delivered			9,798,209						2,951,791
Net proceeds			$	697,044					$	199,716

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Reclassifications Out of Accumulated Other Comprehensive Loss

The following tables present a reconciliation of changes in Accumulated other comprehensive loss by component for the periods presented (in thousands):

			Gains and (Losses) on Derivative Instruments						Foreign Currency Translation Adjustments						Gains and (Losses) on Investments						Total
Balance at January 1, 2019			$	14,102					$	( 269,091 )					$	( 7 )					$	( 254,996 )
Other comprehensive income before reclassifications			12,031						376						7						12,414
Amounts reclassified from accumulated other comprehensive loss to:
Non-operating income			( 15,341 )						—						—						( 15,341 )
Interest expense			2,256						—						—						2,256
Total			( 13,085 )						—						—						( 13,085 )
Net current period other comprehensive loss			( 1,054 )						376						7						( 671 )
Balance at December 31, 2019			13,048						( 268,715 )						—						( 255,667 )
Other comprehensive income before reclassifications			( 23,124 )						47,746						—						24,622
Amounts reclassified from accumulated other comprehensive loss to:
Non-operating income			( 10,672 )						—						—						( 10,672 )
Interest expense			1,818						—						—						1,818
Total			( 8,854 )						—						—						( 8,854 )
Net current period other comprehensive income			( 31,978 )						47,746						—						15,768
Net current period other comprehensive income attributable to noncontrolling interests			( 7 )						—						—						( 7 )
Balance at December 31, 2020			( 18,937 )						( 220,969 )						—						( 239,906 )
Other comprehensive income before reclassifications			35,227						( 35,736 )						18,688						18,179
Amounts reclassified from accumulated other comprehensive loss to:
Interest expense			932						—						—						932
Non-operating income			( 854 )						—						—						( 854 )
Total			78						—						—						78
Net current period other comprehensive income			35,305						( 35,736 )						18,688						18,257
Net current period other comprehensive income attributable to noncontrolling interests			( 21 )						—						—						( 21 )
Balance at December 31, 2021			$	16,347					$	( 256,705 )					$	18,688					$	( 221,670 )

See Note 9 for additional information on our derivatives activity recognized within Other comprehensive income (loss) for the periods presented.

Stock-Based Compensation

At December 31, 2021, we maintained several stock-based compensation plans as described below. The total compensation expense (net of forfeitures) for awards issued under these plans was $ 24.9 million, $ 15.9 million, and $ 18.8 million for the years ended December 31, 2021, 2020, and 2019, respectively, which was included in Stock-based compensation expense in the consolidated financial statements. The tax benefit recognized by us related to these awards totaled $ 0.8 million, $ 4.7 million, and $ 5.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. The tax benefits for the years ended December 31, 2021, 2020, and 2019 were reflected as a deferred tax benefit within (Provision for) benefit from income taxes in the consolidated financial statements.

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2017 Share Incentive Plan

We maintain the 2017 Share Incentive Plan, which authorizes the issuance of up to 4,000,000 shares of our common stock. The 2017 Share Incentive Plan provides for the grant of various stock- and cash-based awards, including (i) share options, (ii) RSUs, (iii) PSUs, (iv) RSAs, and (v) dividend equivalent rights. At December 31, 2021, 2,638,367 shares remained available for issuance under the 2017 Share Incentive Plan, which is more fully described in the 2019 Annual Report.

Employee Share Purchase Plan

We sponsor an employee share purchase plan (“ESPP”) pursuant to which eligible employees may contribute up to 10 % of compensation, subject to certain limits, to purchase our common stock semi-annually at a price equal to 90 % of the fair market value at certain plan defined dates. Compensation expense under this plan for each of the years ended December 31, 2021, 2020, and 2019 was less than $ 0.1 million. Cash received from purchases under the ESPP during the years ended December 31, 2021, 2020, and 2019 was $ 0.3 million, $ 0.4 million, and $ 0.3 million, respectively.

Restricted and Conditional Awards

Nonvested RSAs, RSUs, and PSUs at December 31, 2021 and changes during the years ended December 31, 2021 , 2020, and 2019 were as follows:

			RSA and RSU Awards												PSU Awards
			Shares						Weighted-Average Grant Date Fair Value						Shares						Weighted-Average Grant Date Fair Value
Nonvested at January 1, 2019			277,002						$	62.41					331,216						$	78.82
Granted			163,447						72.86						84,006						92.16
Vested (a)			( 152,364 )						62.11						( 403,701 )						74.04
Forfeited			( 4,108 )						68.10						( 2,829 )						75.81
Adjustment (b)			—						—						322,550						77.69
Nonvested at December 31, 2019			283,977						68.51						331,242						80.90
Granted			146,162						81.02						90,518						104.65
Vested (a)			( 163,607 )						69.62						( 156,838 )						80.42
Forfeited			( 5,555 )						71.69						( 6,715 )						88.94
Adjustment (b)			—						—						3,806						62.07
Nonvested at December 31, 2020			260,977						74.75						262,013						88.99
Granted (c)			194,940						66.40						134,290						86.19
Vested (a)			( 137,267 )						71.99						( 151,678 )						76.04
Forfeited			( 11,656 )						60.98						( 16,463 )						93.91
Adjustment (b)			—						—						170,093						71.17
Nonvested at December 31, 2021 (d)			306,994						$	71.21					398,255						$	86.86

__________

(a) The grant date fair value of shares vested during the years ended December 31, 2021, 2020, and 2019 was $ 21.4 million, $ 24.0 million, and $ 39.4 million, respectively. Employees have the option to take immediate delivery of the shares upon vesting or defer receipt to a future date pursuant to previously made deferral elections. At December 31, 2021 and 2020, we had an obligation to issue 1,104,020 and 986,859 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $ 49.8 million and $ 42.0 million, respectively.

(b) Vesting and payment of the PSUs is conditioned upon certain company and/or market performance goals being met during the relevant three-year performance period. The ultimate number of PSUs to be vested will depend on the extent to which the performance goals are met and can range from zero to three times the original awards. As a result, we recorded adjustments to reflect the number of shares expected to be issued when the PSUs vest.

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(c) The grant date fair value of RSAs and RSUs reflect our stock price on the date of grant on a one -for-one basis. The grant date fair value of PSUs was determined utilizing (i) a Monte Carlo simulation model to generate an estimate of our future stock price over the three-year performance period and (ii) future financial performance projections. To estimate the fair value of PSUs granted during the year ended December 31, 2021, we used a risk-free interest rate of 0.2 %, an expected volatility rate of 36.7 %, and assumed a dividend yield of zero .

(d) At December 31, 2021, total unrecognized compensation expense related to these awards was approximately $ 25.5 million, with an aggregate weighted-average remaining term of 1.7 years.

At the end of each reporting period, we evaluate the ultimate number of PSUs we expect to vest (based upon the extent to which we have met and expect to meet the performance goals) and where appropriate, revise our estimate and associated expense. We do not revise the associated expense on PSUs expected to vest based on market performance. Upon vesting, the RSUs and PSUs may be converted into shares of our common stock. Both the RSUs and PSUs carry dividend equivalent rights. Dividend equivalent rights on RSUs issued under the predecessor employee plan are paid in cash on a quarterly basis, whereas dividend equivalent rights on RSUs issued under the 2017 Share Incentive Plan are accrued and paid in cash only when the underlying shares vest, which is generally on an annual basis. Dividend equivalents on PSUs accrue during the performance period and are converted into additional shares of common stock at the conclusion of the performance period to the extent the PSUs vest. Dividend equivalent rights are accounted for as a reduction to retained earnings to the extent that the awards are expected to vest.

Profit-Sharing Plan

We sponsor a qualified profit-sharing plan and trust that generally permits all employees, as defined by the plan, to make pre-tax contributions into the plan. We are under no obligation to contribute to the plan and the amount of any contribution is determined by and at the discretion of our Board. In December 2021, 2020, and 2019, our Board determined that the contribution to the plan for each of those respective years would be 10 % of an eligible participant’s cash compensation, up to the legal maximum allowable in each of those years of $ 29,000 for 2021, $ 28,500 for 2020, and $ 28,000 for 2019. For the years ended December 31, 2021, 2020, and 2019, amounts expensed for contributions to the trust were $ 2.2 million, $ 1.9 million, and $ 2.1 million, respectively, which were included in General and administrative expenses in the consolidated financial statements. The profit-sharing plan is a deferred compensation plan and is therefore considered to be outside the scope of current accounting guidance for stock-based compensation.

Income Tax Provision

The components of our provision for (benefit from) income taxes for the periods presented are as follows (in thousands):

			Years Ended December 31,
			2021						2020						2019
Federal
Current			$	( 405 )					$	( 1,118 )					$	407
Deferred (a)			17						( 33,040 )						9,579
			( 388 )						( 34,158 )						9,986
State and Local
Current			3,008						3,284						( 3,814 )
Deferred (a)			( 30 )						( 7,756 )						( 376 )
			2,978						( 4,472 )						( 4,190 )
Foreign
Current			30,599						26,137						20,363
Deferred			( 4,703 )						( 8,266 )						52
			25,896						17,871						20,415
Total Provision for (Benefit from) Income Taxes			$	28,486					$	( 20,759 )					$	26,211

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A reconciliation of effective income tax for the periods presented is as follows (in thousands):

			Years Ended December 31,
			2021						2020						2019
Pre-tax income (loss) attributable to taxable subsidiaries (b) (c)			$	37,861					$	( 56,789 )					$	74,754
Federal provision at statutory tax rate (21%)			$	7,951					$	( 11,926 )					$	15,698
Change in valuation allowance			13,178						13,946						11,041
Non-deductible expense			3,148						6,303						5,313
State and local taxes, net of federal benefit			2,713						2,336						4,062
Windfall tax benefit			( 1,375 )						( 2,132 )						( 5,183 )
Rate differential (d)			( 232 )						( 632 )						( 6,820 )
Non-taxable income			—						( 2 )						103
Revocation of TRS Status (a)			—						( 37,249 )						—
Tax expense related to allocation of goodwill based on portion of Investment Management business sold ( Note 3 )			—						7,203						—
Other			3,103						1,394						1,997
Total provision for (benefit from) income taxes			$	28,486					$	( 20,759 )					$	26,211

__________

(a) Amount for the year ended December 31, 2020 includes an aggregate deferred tax benefit of $ 37.2 million as a result of the release of a deferred tax liability relating to our investment in shares of Lineage Logistics ( Note 8 ), which converted to a REIT during the year and is therefore no longer subject to federal and state income taxes

(b) Pre-tax loss attributable to taxable subsidiaries for 2020 was primarily driven by: (i) a portion of the other-than-temporary impairment charges totaling $ 47.1 million recognized on our equity method investments in CWI 1 and CWI 2 ( Note 8 ), (ii) the allocation of $ 34.3 million of goodwill within our Investment Management segment as a result of the WLT management internalization ( Note 3 ), and (iii) an impairment charge of $ 12.6 million recognized on an international property ( Note 8 ).

(c) Pre-tax income attributable to taxable subsidiaries for 2019 includes unrealized gains on our investment in shares of Lineage Logistics totaling $ 32.9 million (prior to its REIT conversion in 2020, as described below) ( Note 8 ).

(d) Amount for the year ended December 31, 2019 includes a current tax benefit of approximately $ 6.3 million due to a change in tax position for state and local taxes.

Benefit from income taxes for the year ended December 31, 2020 includes a deferred tax benefit of $ 6.3 million as a result of the other-than-temporary impairment charges that we recognized on our equity method investments in CWI 1 and CWI 2 during the year ( Note 8 ).

In light of the COVID-19 outbreak during the first quarter of 2020, we continue to monitor domestic and international tax considerations and the potential impact on our consolidated financial statements. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (U.S. federal legislation enacted on March 27, 2020 in response to the COVID-19 pandemic) provides that net operating losses incurred in 2018, 2019, or 2020 may be carried back to offset taxable income earned during the five-year period prior to the year in which the net operating loss was incurred. As a result, we recognized a $ 4.7 million current tax benefit during the year ended December 31, 2020 by carrying back certain net operating losses, which is included in Benefit from income taxes disclosed in the tables above.

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Deferred Income Taxes

Deferred income taxes at December 31, 2021 and 2020 consist of the following (in thousands):

			December 31,
			2021						2020
Deferred Tax Assets
Net operating loss and other tax credit carryforwards			$	55,147					$	49,869
Basis differences — foreign investments			52,705						43,089
Unearned and deferred compensation			15,895						9,753
Lease liabilities (a)			14,752						14,144
Other			374						—
Total deferred tax assets			138,873						116,855
Valuation allowance			( 108,812 )						( 86,069 )
Net deferred tax assets			30,061						30,786
Deferred Tax Liabilities
Basis differences — foreign investments			( 145,524 )						( 145,838 )
ROU assets (a)			( 12,637 )						( 12,618 )
Basis differences — equity investees			( 1,195 )						( 2,364 )
Deferred revenue			—						( 97 )
Other			—						( 632 )
Total deferred tax liabilities			( 159,356 )						( 161,549 )
Net Deferred Tax Liability			$	( 129,295 )					$	( 130,763 )

__________

(a) Balances represent our basis differences for our office leases on domestic taxable subsidiaries. Basis differences on our foreign ground leases are included within the line item Basis differences — foreign investments.

Our deferred tax assets and liabilities are primarily the result of temporary differences related to the following:

• Basis differences between tax and GAAP for certain international real estate investments. For income tax purposes, in certain acquisitions, we assume the seller’s basis, or the carry-over basis, in the acquired assets. The carry-over basis is typically lower than the purchase price, or the GAAP basis, resulting in a deferred tax liability with an offsetting increase to goodwill or the acquired tangible or intangible assets;

• Timing differences generated by differences in the GAAP basis and the tax basis of assets such as those related to capitalized acquisition costs, straight-line rent, prepaid rents, and intangible assets, as well as unearned and deferred compensation;

• Basis differences in equity investments represents fees earned in shares recognized under GAAP into income and deferred for U.S. taxes based upon a share vesting schedule; and

• Tax net operating losses in certain subsidiaries, including those domiciled in foreign jurisdictions, that may be realized in future periods if the respective subsidiary generates sufficient taxable income. Certain net operating losses and interest carryforwards were subject to limitations as a result of the CPA:17 Merger, and thus could not be applied to reduce future income tax liabilities.

As of December 31, 2021, U.S. federal and state net operating loss carryforwards were $ 21.0 million and $ 12.7 million, respectively, which will begin to expire in 2033. As of December 31, 2021, net operating loss carryforwards in foreign jurisdictions were $ 84.2 million, which will begin to expire in 2022.

The net deferred tax liability in the table above is comprised of deferred tax asset balances, net of certain deferred tax liabilities and valuation allowances, of $ 16.3 million and $ 15.1 million at December 31, 2021 and 2020, respectively, which are included in Other assets, net in the consolidated balance sheets, and other deferred tax liability balances of $ 145.6 million and $ 145.8 million at December 31, 2021 and 2020, respectively, which are included in Deferred income taxes in the consolidated balance sheets.

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Our taxable subsidiaries recognize tax positions in the financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements.

The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits (in thousands):

			Years Ended December 31,
			2021						2020
Beginning balance			$	6,312					$	5,756
Decrease due to lapse in statute of limitations			( 508 )						( 783 )
Foreign currency translation adjustments			( 451 )						515
Addition based on tax positions related to the current year			326						591
Addition based on tax positions related to the prior year			315						233
Ending balance			$	5,994					$	6,312

At December 31, 2021 and 2020, we had unrecognized tax benefits as presented in the table above that, if recognized, would have a favorable impact on our effective income tax rate in future periods. These unrecognized tax benefits are recorded as liabilities within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets. We recognize interest and penalties related to uncertain tax positions in income tax expense. At December 31, 2021 and 2020, we had approximately $ 2.1 million and $ 1.7 million, respectively, of accrued interest related to uncertain tax positions.

Income Taxes Paid

Income taxes paid were $ 44.3 million, $ 43.5 million, and $ 35.3 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Real Estate Operations

We elected to be taxed as a REIT under Section 856 through 860 of the Internal Revenue Code effective as of February 15, 2012. In order to maintain our qualification as a REIT, we are required, among other things, to distribute at least 90% of our REIT net taxable income to our stockholders and meet certain tests regarding the nature of our income and assets. As a REIT, we are not subject to federal income taxes on our income and gains that we distribute to our stockholders as long as we satisfy certain requirements, principally relating to the nature of our income and the level of our distributions, as well as other factors. We believe that we have operated, and we intend to continue to operate, in a manner that allows us to continue to qualify as a REIT. We conduct business primarily in North America and Europe, and as a result, we or one or more of our subsidiaries file income tax returns in the United States federal jurisdiction and various state, local, and foreign jurisdictions.

Investment Management Operations

We conduct our investment management services in our Investment Management segment through TRSs. Our use of TRSs enables us to engage in certain businesses while complying with the REIT qualification requirements and also allows us to retain income generated by these businesses for reinvestment without the requirement to distribute those earnings. Certain of our inter-company transactions that have been eliminated in consolidation for financial accounting purposes are also subject to taxation. Periodically, shares in the Managed REITs that are payable to our TRSs in consideration of services rendered are distributed from TRSs to us.

Tax authorities in the relevant jurisdictions may select our tax returns for audit and propose adjustments before the expiration of the statute of limitations. Our tax returns filed for tax years 2016 through 2020 or any ongoing audits remain open to adjustment in the major tax jurisdictions.

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We have an active capital recycling program, with a goal of extending the average lease term through reinvestment, improving portfolio credit quality through dispositions and acquisitions of assets, increasing the asset criticality factor in our portfolio, and/or executing strategic dispositions of assets. We may decide to dispose of a property when it is vacant as a result of tenants vacating space, tenants electing not to renew their leases, tenant insolvency, or lease rejection in the bankruptcy process. In such cases, we assess whether we can obtain the highest value from the property by selling it, as opposed to re-leasing it. We may also sell a property when we receive an unsolicited offer or negotiate a price for an investment that is consistent with our strategy for that investment. When it is appropriate to do so, we classify the property as an asset held for sale on our consolidated balance sheet. All property dispositions are recorded within our Real Estate segment and are also discussed in Note 4 and Note 5 .

2021 — During the year ended December 31, 2021, we sold 24 properties for total proceeds, net of selling costs, of $ 163.6 million, and recognized a net gain on these sales totaling $ 40.4 million (inclusive of income taxes totaling $ 4.7 million recognized upon sale).

2020 — During the year ended December 31, 2020, we sold 22 properties for total proceeds, net of selling costs, of $ 366.5 million (inclusive of $ 4.7 million attributable to a noncontrolling interest), and recognized a net gain on these sales totaling $ 109.4 million (inclusive of income taxes totaling $ 3.0 million recognized upon sale and $ 0.6 million attributable to a noncontrolling interest). Disposition activity included the sale of one of our two hotel operating properties in January 2020 for total proceeds, net of selling costs, of $ 103.5 million (inclusive of $ 4.7 million attributable to a noncontrolling interest).

2019 — During the year ended December 31, 2019, we sold 14 properties for total proceeds, net of selling costs, of $ 308.0 million and recognized a net gain on these sales totaling $ 10.9 million (inclusive of income taxes totaling $ 1.2 million recognized upon sale).

In June 2019, a loan receivable was repaid in full to us for $ 9.3 million, which resulted in a net loss of $ 0.1 million.

In October 2019, we transferred ownership of six properties and the related non-recourse mortgage loan, which had an aggregate asset carrying value of $ 42.3 million and a mortgage carrying value of $ 43.4 million (including a $ 13.8 million discount on the mortgage loan), respectively, on the date of transfer, to the mortgage lender, resulting in a net gain of $ 8.3 million (outstanding principal balance was $ 56.4 million and we wrote off $ 5.6 million of accrued interest payable).

In addition, in December 2019, we transferred ownership of a property and the related non-recourse mortgage loan, which had an aggregate asset carrying value of $ 10.4 million and a mortgage carrying value of $ 8.2 million (including a $ 0.5 million discount on the mortgage loan), respectively, on the date of transfer, to the mortgage lender, resulting in a net loss of $ 1.0 million (outstanding principal balance was $ 8.7 million and we wrote off $ 0.9 million of accrued interest payable).

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We evaluate our results from operations by our two major business segments: Real Estate and Investment Management ( Note 1 ). The following tables present a summary of comparative results and assets for these business segments (in thousands):

Real Estate

			Years Ended December 31,
			2021						2020						2019
Revenues
Lease revenues			$	1,177,438					$	1,080,623					$	987,984
Income from direct financing leases and loans receivable			67,555						74,893						105,112
Lease termination income and other			53,655						11,082						29,547
Operating property revenues (a)			13,478						11,399						50,220
			1,312,126						1,177,997						1,172,863
Operating Expenses
Depreciation and amortization (b)			475,989						441,948						443,300
General and administrative (b)			81,888						70,127						56,796
Reimbursable tenant costs			62,417						56,409						55,576
Property expenses, excluding reimbursable tenant costs			47,898						44,067						39,545
Stock-based compensation expense (b)			24,881						15,247						13,248
Impairment charges			24,246						35,830						32,539
Operating property expenses			9,848						9,901						38,015
Merger and other expenses			( 4,597 )						( 937 )						101
			722,570						672,592						679,120
Other Income and Expenses
Interest expense			( 196,831 )						( 210,087 )						( 233,325 )
Gain on sale of real estate, net			40,425						109,370						18,143
(Losses) earnings from equity method investments in real estate			( 19,649 )						( 9,017 )						2,361
Non-operating income			13,778						8,970						20,478
Other gains and (losses)			( 13,676 )						37,104						9,773
Loss on change in control of interests			—						—						( 8,416 )
			( 175,953 )						( 63,660 )						( 190,986 )
Income before income taxes			413,603						441,745						302,757
(Provision for) benefit from income taxes			( 28,703 )						18,498						( 30,802 )
Net Income from Real Estate			384,900						460,243						271,955
Net (income) loss attributable to noncontrolling interests			( 134 )						( 731 )						110
Net Income from Real Estate Attributable to W. P. Carey			$	384,766					$	459,512					$	272,065

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Investment Management

			Years Ended December 31,
			2021						2020						2019
Revenues
Asset management revenue			$	15,363					$	22,467					$	43,356
Reimbursable costs from affiliates			4,035						8,855						16,547
			19,398						31,322						59,903
Operating Expenses
Reimbursable costs from affiliates			4,035						8,855						16,547
Merger and other expenses			51						1,184						—
General and administrative (b)			—						5,823						18,497
Subadvisor fees			—						1,469						7,579
Depreciation and amortization (b)			—						987						3,835
Stock-based compensation expense (b)			—						691						5,539
			4,086						19,009						51,997
Other Income and Expenses
Earnings (losses) from equity method investments in the Managed Programs			8,820						( 9,540 )						20,868
Other gains and (losses)			791						61						( 849 )
Non-operating income			82						617						2,073
			9,693						( 8,862 )						22,092
Income before income taxes			25,005						3,451						29,998
Benefit from income taxes			217						2,261						4,591
Net Income from Investment Management			25,222						5,712						34,589
Net income attributable to noncontrolling interests			—						( 9,865 )						( 1,411 )
Net Income (Loss) from Investment Management Attributable to W. P. Carey			$	25,222					$	( 4,153 )					$	33,178

Total Company

			Years Ended December 31,
			2021						2020						2019
Revenues			$	1,331,524					$	1,209,319					$	1,232,766
Operating expenses			726,656						691,601						731,117
Other income and expenses			( 166,260 )						( 72,522 )						( 168,894 )
(Provision for) benefit from income taxes			( 28,486 )						20,759						( 26,211 )
Net income attributable to noncontrolling interests			( 134 )						( 10,596 )						( 1,301 )
Net income attributable to W. P. Carey			$	409,988					$	455,359					$	305,243

			Total Assets at December 31,
			2021						2020
Real Estate			$	15,344,703					$	14,582,015
Investment Management			135,927						125,621
Total Company			$	15,480,630					$	14,707,636

__________

(a) Operating property revenues from our hotels include (i) $ 7.2 million, $ 4.0 million, and $ 15.0 million for the years ended December 31, 2021, 2020, and 2019, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect the impact of the COVID-19 pandemic on the hotel’s operations), and (ii) $ 1.9 million and $ 14.4 million for the years ended December 31, 2020 and 2019, respectively, generated from a hotel in Miami, Florida, which was sold in January 2020 ( Note 15 ).

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(b) Beginning with the second quarter of 2020, general and administrative expenses attributed to our Investment Management segment are comprised of the incremental costs of providing services to the Managed Programs, which are fully reimbursed by those funds (resulting in no net expense for us). All other general and administrative expenses are attributed to our Real Estate segment. Previously, general and administrative expenses were allocated based on time incurred by our personnel for the Real Estate and Investment Management segments. In addition, beginning with the second quarter of 2020, stock-based compensation expense and corporate depreciation and amortization expense are fully recognized within our Real Estate segment. In light of the termination of the advisory agreements with CWI 1 and CWI 2 in connection with the WLT management internalization ( Note 3 ), we now view essentially all assets, liabilities, and operational expenses as part of our Real Estate segment, other than incremental activities that are expected to wind down as we manage CPA:18 – Global and CESH through the end of their respective life cycles ( Note 2 ). These changes between the segments had no impact on our consolidated financial statements.

Our portfolio is comprised of domestic and international investments. At December 31, 2021, our international investments within our Real Estate segment were comprised of investments in Germany, Spain, the Netherlands, Poland, the United Kingdom, Italy, France, Croatia, Denmark, Canada, Finland, Mexico, Norway, Hungary, Portugal, Lithuania, the Czech Republic, Sweden, Slovakia, Austria, Japan, Latvia, and Estonia. We sold our only remaining investment in Belgium during 2021. No tenant or international country individually comprised at least 10% of our total lease revenues for the years ended December 31, 2021, 2020, or 2019, or at least 10% of our total long-lived assets at December 31, 2021 or 2020. Revenues and assets within our Investment Management segment are entirely domestic. The following tables present the geographic information for our Real Estate segment (in thousands):

			Years Ended December 31,
			2021						2020						2019
Revenues
Domestic			$	860,961					$	756,763					$	783,828
International			451,165						421,234						389,035
Total			$	1,312,126					$	1,177,997					$	1,172,863

			December 31,
			2021						2020
Long-lived Assets (a)
Domestic			$	8,170,448					$	7,589,805
International			4,866,921						4,796,767
Total			$	13,037,369					$	12,386,572
Equity Investments in Real Estate
Domestic			$	236,643					$	152,451
International			55,260						74,438
Total			$	291,903					$	226,889

__________

(a) Consists of Net investments in real estate. In 2021, we reclassified loans receivable to be included within Net investments in real estate ( Note 2 ). As a result, Net investments in real estate as of December 31, 2020 has been revised to conform to the current period presentation.

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Acquisitions

In January and February 2022, we completed two acquisitions totaling approximately $ 166.3 million (based on the exchange rate of the euro on the date of acquisition, as applicable).

Dispositions

In January and February 2022, we sold two domestic properties for gross proceeds totaling $ 19.3 million. These properties were classified as held for sale as of December 31, 2021 ( Note 4 ).

Dividend from and Redemption of our Investment in Preferred Shares of WLT

In January 2022, we received a $ 0.9 million cash dividend from our investment in preferred shares of WLT ( Note 8 ). In addition, in January 2022, our investment in 1,300,000 preferred shares of WLT was redeemed in full, for gross proceeds of $ 65.0 million (based on a liquidation preference of $ 50.00 per share, as described in Note 3 ).

Issuances Under our ATM Program

In January 2022, we issued 593,060 shares of our common stock under our current ATM Program at a weighted-average price of $ 81.29 per share for net proceeds of approximately $ 47 million. As of the date of this Report, approximately $ 223.9 million remained available for issuance under our current ATM Program ( Note 12 ).

Dividend from our Investment in Shares of Lineage Logistics

In February 2022, we received a cash dividend of $ 4.3 million from our investment in shares of Lineage Logistics ( Note 8 ).

CESH Distribution

In January 2022, we received a distribution from our investment in CESH of $ 1.2 million ( N o te 7 ).

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W. P. CAREY INC.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2021, 2020, and 2019

(in thousands)

Description						Balance at Beginning of Year						Other Additions						Deductions						Balance at End of Year
Year Ended December 31, 2021
Valuation reserve for deferred tax assets						$	86,069					$	40,895					$	( 18,152 )					$	108,812
Year Ended December 31, 2020
Valuation reserve for deferred tax assets						$	73,643					$	31,470					$	( 19,044 )					$	86,069
Year Ended December 31, 2019
Valuation reserve for deferred tax assets						$	54,499					$	22,384					$	( 3,240 )					$	73,643

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W. P. CAREY INC.

SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Land, Buildings and Improvements Subject to Operating Leases
Industrial facilities in Erlanger, KY						$	—					$	1,526					$	21,427					$	2,966					$	( 84 )					$	1,526					$	24,309					$	25,835					$	14,823					1979; 1987						Jan. 1998						40 yrs.
Industrial facilities in Thurmont, MD and Farmington, NY						—						729						5,903						—						—						729						5,903						6,632						3,026						1964; 1983						Jan. 1998						15 yrs.
Warehouse facilities in Anchorage, AK and Commerce, CA						—						4,905						11,898						—						12						4,905						11,910						16,815						6,994						1948; 1975						Jan. 1998						40 yrs.
Industrial facility in Toledo, OH						—						224						2,408						—						—						224						2,408						2,632						1,906						1966						Jan. 1998						40 yrs.
Industrial facility in Goshen, IN						—						239						940						—						—						239						940						1,179						557						1973						Jan. 1998						40 yrs.
Office facility in Raleigh, NC						—						1,638						2,844						187						( 2,554 )						828						1,287						2,115						1,027						1983						Jan. 1998						20 yrs.
Office facility in King of Prussia, PA						—						1,219						6,283						1,295						—						1,219						7,578						8,797						4,430						1968						Jan. 1998						40 yrs.
Industrial facility in Pinconning, MI						—						32						1,692						—						—						32						1,692						1,724						1,015						1948						Jan. 1998						40 yrs.
Industrial facilities in Sylmar, CA						—						2,052						5,322						—						( 1,889 )						1,494						3,991						5,485						2,406						1962; 1979						Jan. 1998						40 yrs.
Retail facilities in several cities in the following states: Alabama, Florida, Georgia, Illinois, Louisiana, Missouri, New Mexico, North Carolina, South Carolina, Tennessee, and Texas						—						9,382						—						238						14,696						9,025						15,291						24,316						8,644						Various						Jan. 1998						15 yrs.
Industrial facility in Glendora, CA						—						1,135						—						—						1,942						1,152						1,925						3,077						577						1950						Jan. 1998						10 yrs.
Warehouse facility in Doraville, GA						—						3,288						9,864						17,079						( 11,410 )						3,288						15,533						18,821						2,285						2016						Jan. 1998						40 yrs.
Office facility in Collierville, TN and warehouse facility in Corpus Christi, TX						—						3,490						72,497						3,513						( 15,608 )						288						63,604						63,892						22,296						1989; 1999						Jan. 1998						40 yrs.
Land in Irving and Houston, TX						—						9,795						—						—						—						9,795						—						9,795						—						N/A						Jan. 1998						N/A
Industrial facility in Chandler, AZ						—						5,035						18,957						8,373						516						5,035						27,846						32,881						15,946						1989						Jan. 1998						40 yrs.
Office facility in Bridgeton, MO						—						842						4,762						2,523						( 196 )						842						7,089						7,931						4,039						1972						Jan. 1998						40 yrs.
Retail facility in Waterford Township, MI						—						1,039						4,788						236						( 2,297 )						494						3,272						3,766						1,428						1972						Jan. 1998						35 yrs.
Warehouse facility in Memphis, TN						—						1,882						3,973						294						( 3,892 )						328						1,929						2,257						1,483						1969						Jan. 1998						15 yrs.
Industrial facility in Romulus, MI						—						454						6,411						525						—						454						6,936						7,390						2,071						1970						Jan. 1998						10 yrs.
Retail facility in Bellevue, WA						—						4,125						11,812						393						( 123 )						4,371						11,836						16,207						6,874						1994						Apr. 1998						40 yrs.
Office facility in Rio Rancho, NM						—						1,190						9,353						5,866						( 238 )						2,287						13,884						16,171						7,136						1999						Jul. 1998						40 yrs.
Office facility in Moorestown, NJ						—						351						5,981						1,667						1						351						7,649						8,000						4,682						1964						Feb. 1999						40 yrs.
Industrial facilities in Lenexa, KS and Winston-Salem, NC						—						1,860						12,539						3,075						( 1,135 )						1,725						14,614						16,339						7,746						1968; 1980						Sep. 2002						40 yrs.
Office facilities in Playa Vista and Venice, CA						20,058						2,032						10,152						52,817						1						5,889						59,113						65,002						18,865						1991; 1999						Sep. 2004; Sep. 2012						40 yrs.
Warehouse facility in Greenfield, IN						—						2,807						10,335						223						( 8,383 )						967						4,015						4,982						2,144						1995						Sep. 2004						40 yrs.
Retail facility in Hot Springs, AR						—						850						2,939						2						( 2,614 )						—						1,177						1,177						510						1985						Sep. 2004						40 yrs.
Warehouse facilities in Apopka, FL						—						362						10,855						1,195						( 155 )						337						11,920						12,257						4,628						1969						Sep. 2004						40 yrs.
Land in San Leandro, CA						—						1,532						—						—						—						1,532						—						1,532						—						N/A						Dec. 2006						N/A

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Fitness facility in Austin, TX						—						1,725						5,168						—						—						1,725						5,168						6,893						2,735						1995						Dec. 2006						29 yrs.
Retail facility in Wroclaw, Poland						—						3,600						10,306						—						( 3,664 )						2,832						7,410						10,242						2,576						2007						Dec. 2007						40 yrs.
Office facility in Fort Worth, TX						—						4,600						37,580						186						—						4,600						37,766						42,366						11,240						2003						Feb. 2010						40 yrs.
Warehouse facility in Mallorca, Spain						—						11,109						12,636						—						( 1,230 )						10,514						12,001						22,515						3,472						2008						Jun. 2010						40 yrs.
Net-lease hotels in Irvine, Sacramento, and San Diego, CA; Orlando, FL; Des Plaines, IL; Indianapolis, IN; Louisville, KY; Linthicum Heights, MD; Newark, NJ; Albuquerque, NM; and Spokane, WA						—						32,680						198,999						—						—						32,680						198,999						231,679						50,737						1989; 1990						Sep. 2012						34 - 37 yrs.
Industrial facilities in Auburn, IN; Clinton Township, MI; and Bluffton, OH						—						4,403						20,298						—						( 3,870 )						2,589						18,242						20,831						5,276						1968; 1975; 1995						Sep. 2012; Jan. 2014						30 yrs.
Office facility in Irvine, CA						—						4,173						—						—						13,766						4,173						13,766						17,939						224						1981						Sep. 2012						31 yrs.
Industrial facility in Alpharetta, GA						—						2,198						6,349						1,247						—						2,198						7,596						9,794						2,383						1997						Sep. 2012						30 yrs.
Office facility in Clinton, NJ						13,360						2,866						34,834						—						( 16,301 )						2,866						18,533						21,399						10,570						1987						Sep. 2012						30 yrs.
Office facilities in St. Petersburg, FL						—						3,280						24,627						3,288						—						3,280						27,915						31,195						8,089						1996; 1999						Sep. 2012						30 yrs.
Movie theater in Baton Rouge, LA						—						4,168						5,724						3,200						—						4,168						8,924						13,092						2,700						2003						Sep. 2012						30 yrs.
Industrial and office facility in San Diego, CA						—						7,804						16,729						5,415						( 832 )						7,804						21,312						29,116						6,778						2002						Sep. 2012						30 yrs.
Industrial facility in Richmond, CA						—						895						1,953						—						—						895						1,953						2,848						604						1999						Sep. 2012						30 yrs.
Warehouse facilities in Kingman, AZ; Woodland, CA; Jonesboro, GA; Kansas City, MO; Springfield, OR; Fogelsville, PA; and Corsicana, TX						—						16,386						84,668						8,737						—						16,386						93,405						109,791						26,470						Various						Sep. 2012						30 yrs.
Industrial facilities in Rocky Mount, NC and Lewisville, TX						—						2,163						17,715						609						( 8,389 )						1,132						10,966						12,098						3,341						1948; 1989						Sep. 2012						30 yrs.
Industrial facilities in Chattanooga, TN						—						558						5,923						—						—						558						5,923						6,481						1,810						1974; 1989						Sep. 2012						30 yrs.
Industrial facility in Mooresville, NC						—						756						9,775						—						—						756						9,775						10,531						2,979						1997						Sep. 2012						30 yrs.
Industrial facility in McCalla, AL						—						960						14,472						42,662						( 254 )						2,076						55,764						57,840						10,959						2004						Sep. 2012						31 yrs.
Office facility in Lower Makefield Township, PA						—						1,726						12,781						4,378						—						1,726						17,159						18,885						4,847						2002						Sep. 2012						30 yrs.
Industrial facility in Fort Smith, AZ						—						1,063						6,159						—						—						1,063						6,159						7,222						1,857						1982						Sep. 2012						30 yrs.
Retail facilities in Greenwood, IN and Buffalo, NY						3,035						—						19,990						—						—						—						19,990						19,990						5,963						2000; 2003						Sep. 2012						30 - 31 yrs.
Industrial facilities in Bowling Green, KY and Jackson, TN						—						1,492						8,182						600						—						1,492						8,782						10,274						2,481						1989; 1995						Sep. 2012						31 yrs.
Education facilities in Rancho Cucamonga, CA and Exton, PA						—						14,006						33,683						9,428						( 20,142 )						6,638						30,337						36,975						6,893						2004						Sep. 2012						31 - 32 yrs.
Industrial facilities in St. Petersburg, FL; Buffalo Grove, IL; West Lafayette, IN; Excelsior Springs, MO; and North Versailles, PA						—						6,559						19,078						3,285						—						6,559						22,363						28,922						5,859						Various						Sep. 2012						31 yrs.
Industrial and warehouse facility in Mesquite, TX						—						2,702						13,029						—						—						2,702						13,029						15,731						85						1972						Sep. 2012						31 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

																								Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
												Initial Cost to Company
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Industrial facilities in Tolleson, AZ; Alsip, IL; and Solvay, NY						—						6,080						23,424						—						—						6,080						23,424						29,504						6,931						1990; 1994; 2000						Sep. 2012						31 yrs.
Fitness facilities in Memphis TN and Bedford, TX						—						4,877						4,258						5,215						1,156						3,023						12,483						15,506						4,557						1990; 1995						Sep. 2012						31 yrs.
Warehouse facilities in Oceanside, CA and Concordville, PA						1,487						3,333						8,270						—						—						3,333						8,270						11,603						2,454						1989; 1996						Sep. 2012						31 yrs.
Net-lease self-storage facilities located throughout the United States						—						74,551						319,186						—						( 50 )						74,501						319,186						393,687						93,694						Various						Sep. 2012						31 yrs.
Warehouse facility in La Vista, NE						17,740						4,196						23,148						—						—						4,196						23,148						27,344						6,403						2005						Sep. 2012						33 yrs.
Office facility in Pleasanton, CA						—						3,675						7,468						—						—						3,675						7,468						11,143						2,186						2000						Sep. 2012						31 yrs.
Office facility in San Marcos, TX						—						440						688						—						—						440						688						1,128						201						2000						Sep. 2012						31 yrs.
Office facility in Chicago, IL						—						2,169						19,010						83						( 72 )						2,169						19,021						21,190						5,522						1910						Sep. 2012						31 yrs.
Industrial facilities in Hollywood and Orlando, FL						—						3,639						1,269						—						—						3,639						1,269						4,908						369						1996						Sep. 2012						31 yrs.
Warehouse facility in Golden, CO						—						808						4,304						77						—						808						4,381						5,189						1,399						1998						Sep. 2012						30 yrs.
Industrial facility in Texarkana, TX						—						1,755						4,493						—						( 2,783 )						216						3,249						3,465						944						1997						Sep. 2012						31 yrs.
Industrial facility in South Jordan, UT						—						2,183						11,340						1,642						—						2,183						12,982						15,165						3,656						1995						Sep. 2012						31 yrs.
Warehouse facility in Ennis, TX						—						478						4,087						145						( 145 )						478						4,087						4,565						1,187						1989						Sep. 2012						31 yrs.
Office facility in Paris, France						—						23,387						43,450						703						( 7,980 )						20,597						38,963						59,560						10,876						1975						Sep. 2012						32 yrs.
Retail facilities in Bydgoszcz, Czestochowa, Jablonna, Katowice, Kielce, Lodz, Lubin, Olsztyn, Opole, Plock, Rybnik, Walbrzych, and Warsaw, Poland						—						26,564						72,866						—						( 11,902 )						23,354						64,174						87,528						24,959						Various						Sep. 2012						23 - 34 yrs.
Industrial facilities in Danbury, CT and Bedford, MA						—						3,519						16,329						—						—						3,519						16,329						19,848						5,061						1965; 1980						Sep. 2012						29 yrs.
Industrial facility in Brownwood, TX						—						722						6,268						—						—						722						6,268						6,990						1,254						1964						Sep. 2012						15 yrs.
Industrial facility in Rochester, MN						—						809						14,236						—						—						809						14,236						15,045						208						1997						Sep. 2012						31 yrs.
Industrial and office facility in Tampere, Finland						—						2,309						37,153						—						( 5,177 )						1,981						32,304						34,285						8,857						2012						Jun. 2013						40 yrs.
Office facility in Quincy, MA						—						2,316						21,537						127						—						2,316						21,664						23,980						5,031						1989						Jun. 2013						40 yrs.
Office facility in Salford, United Kingdom						—						—						30,012						—						( 4,152 )						—						25,860						25,860						5,505						1997						Sep. 2013						40 yrs.
Office facility in Lone Tree, CO						—						4,761						28,864						3,381						—						4,761						32,245						37,006						7,769						2001						Nov. 2013						40 yrs.
Office facility in Mönchengladbach, Germany						30,302						2,154						6,917						50,626						( 1,254 )						2,175						56,268						58,443						8,627						2015						Dec. 2013						40 yrs.
Fitness facility in Houston, TX						—						2,430						2,270						—						—						2,430						2,270						4,700						802						1995						Jan. 2014						23 yrs.
Fitness facility in St. Charles, MO						—						1,966						1,368						1,352						—						1,966						2,720						4,686						962						1987						Jan. 2014						27 yrs.
Office facility in Scottsdale, AZ						—						22,300						42,329						—						—						22,300						42,329						64,629						1,788						1977						Jan. 2014						34 yrs.
Industrial facility in Aurora, CO						—						737						2,609						—						—						737						2,609						3,346						654						1985						Jan. 2014						32 yrs.
Warehouse facility in Burlington, NJ						—						3,989						6,213						377						—						3,989						6,590						10,579						2,058						1999						Jan. 2014						26 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

																								Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
												Initial Cost to Company
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Industrial facility in Albuquerque, NM						—						2,467						3,476						606						—						2,467						4,082						6,549						1,223						1993						Jan. 2014						27 yrs.
Industrial facility in North Salt Lake, UT						—						10,601						17,626						—						( 16,936 )						4,388						6,903						11,291						2,088						1981						Jan. 2014						26 yrs.
Industrial facility in Lexington, NC						—						2,185						12,058						—						( 2,519 )						494						11,230						11,724						3,203						2003						Jan. 2014						28 yrs.
Land in Welcome, NC						—						980						11,230						—						( 11,724 )						486						—						486						—						N/A						Jan. 2014						N/A
Industrial facilities in Evansville, IN; Lawrence, KS; and Baltimore, MD						—						4,005						44,192						—						—						4,005						44,192						48,197						14,677						1911; 1967; 1982						Jan. 2014						24 yrs.
Industrial facilities in Colton, CA; Bonner Springs, KS; and Dallas, TX and land in Eagan, MN						—						8,451						25,457						—						298						8,451						25,755						34,206						7,099						1978; 1979; 1986						Jan. 2014						17 - 34 yrs.
Retail facility in Torrance, CA						—						8,412						12,241						1,839						( 76 )						8,335						14,081						22,416						4,584						1973						Jan. 2014						25 yrs.
Office facility in Houston, TX						—						6,578						424						560						—						6,578						984						7,562						547						1978						Jan. 2014						27 yrs.
Land in Doncaster, United Kingdom						—						4,257						4,248						—						( 8,103 )						402						—						402						—						N/A						Jan. 2014						N/A
Warehouse facility in Norwich, CT						—						3,885						21,342						—						2						3,885						21,344						25,229						5,981						1960						Jan. 2014						28 yrs.
Warehouse facility in Norwich, CT						—						1,437						9,669						—						—						1,437						9,669						11,106						2,710						2005						Jan. 2014						28 yrs.
Warehouse facility in Whitehall, PA						—						7,435						9,093						26,529						( 9,545 )						6,983						26,529						33,512						240						2021						Jan. 2014						40 yrs.
Retail facility in York, PA						—						3,776						10,092						—						( 6,413 )						527						6,928						7,455						1,625						2005						Jan. 2014						34 yrs.
Industrial facility in Pittsburgh, PA						—						1,151						10,938						—						—						1,151						10,938						12,089						3,498						1991						Jan. 2014						25 yrs.
Warehouse facilities in Atlanta, GA and Elkwood, VA						—						5,356						4,121						—						( 2,104 )						4,284						3,089						7,373						878						1975						Jan. 2014						28 yrs.
Warehouse facility in Harrisburg, NC						—						1,753						5,840						781						( 111 )						1,642						6,621						8,263						1,796						2000						Jan. 2014						26 yrs.
Industrial facility in Chandler, AZ; industrial, office, and warehouse facility in Englewood, CO; and land in Englewood, CO						2,209						4,306						7,235						—						3						4,306						7,238						11,544						1,894						1978; 1987						Jan. 2014						30 yrs.
Industrial facility in Cynthiana, KY						1,130						1,274						3,505						525						( 107 )						1,274						3,923						5,197						1,107						1967						Jan. 2014						31 yrs.
Industrial facilities in Albemarle and Old Fort, NC and Holmesville, OH						—						5,507						18,653						—						—						5,507						18,653						24,160						145						1955; 1966; 1970						Jan. 2014						32 yrs.
Industrial facility in Columbia, SC						—						2,843						11,886						—						—						2,843						11,886						14,729						4,166						1962						Jan. 2014						23 yrs.
Movie theater in Midlothian, VA						—						2,824						16,618						—						—						2,824						16,618						19,442						1,742						2000						Jan. 2014						40 yrs.
Net-lease student housing facility in Laramie, WY						—						1,966						18,896						—						—						1,966						18,896						20,862						5,383						2007						Jan. 2014						33 yrs.
Warehouse facilities in Mendota, IL; Toppenish, WA; and Plover, WI						—						1,444						21,208						—						( 623 )						1,382						20,647						22,029						7,291						1996						Jan. 2014						23 yrs.
Office facility in Sunnyvale, CA						—						9,297						24,086						—						( 14,792 )						7,306						11,285						18,591						11,285						1981						Jan. 2014						31 yrs.
Industrial facilities in Hampton, NH						—						8,990						7,362						—						—						8,990						7,362						16,352						1,921						1976						Jan. 2014						30 yrs.
Industrial facilities located throughout France						—						36,306						5,212						337						6,367						26,219						22,003						48,222						2,444						Various						Jan. 2014						23 yrs.
Retail facility in Fairfax, VA						—						3,402						16,353						—						—						3,402						16,353						19,755						4,916						1998						Jan. 2014						26 yrs.
Retail facility in Lombard, IL						—						5,087						8,578						—						—						5,087						8,578						13,665						2,578						1999						Jan. 2014						26 yrs.
Warehouse facility in Plainfield, IN						—						1,578						29,415						706						—						1,578						30,121						31,699						7,710						1997						Jan. 2014						30 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Retail facility in Kennesaw, GA						—						2,849						6,180						5,530						( 76 )						2,773						11,710						14,483						3,369						1999						Jan. 2014						26 yrs.
Retail facility in Leawood, KS						—						1,487						13,417						—						—						1,487						13,417						14,904						4,033						1997						Jan. 2014						26 yrs.
Office facility in Tolland, CT						—						1,817						5,709						—						11						1,817						5,720						7,537						1,651						1968						Jan. 2014						28 yrs.
Warehouse facilities in Lincolnton, NC and Mauldin, SC						—						1,962						9,247						—						—						1,962						9,247						11,209						2,607						1988; 1996						Jan. 2014						28 yrs.
Retail facilities located throughout Germany						—						81,109						153,927						10,510						( 135,774 )						27,939						81,833						109,772						21,202						Various						Jan. 2014						Various
Office facility in Southfield, MI						—						1,726						4,856						89						—						1,726						4,945						6,671						1,264						1985						Jan. 2014						31 yrs.
Office facility in The Woodlands, TX						—						3,204						24,997						—						—						3,204						24,997						28,201						6,282						1997						Jan. 2014						32 yrs.
Warehouse facilities in Valdosta, GA and Johnson City, TN						—						1,080						14,998						1,841						—						1,080						16,839						17,919						4,726						1978; 1998						Jan. 2014						27 yrs.
Industrial facility in Amherst, NY						6,273						674						7,971						—						—						674						7,971						8,645						2,815						1984						Jan. 2014						23 yrs.
Industrial and warehouse facilities in Westfield, MA						—						1,922						9,755						7,435						9						1,922						17,199						19,121						5,051						1954; 1997						Jan. 2014						28 yrs.
Warehouse facility in Kotka, Finland						—						—						8,546						—						( 6,971 )						—						1,575						1,575						1,295						2001						Jan. 2014						23 yrs.
Office facility in Bloomington, MN						—						2,942						7,155						—						—						2,942						7,155						10,097						1,999						1988						Jan. 2014						28 yrs.
Warehouse facility in Gorinchem, Netherlands						2,750						1,143						5,648						—						( 1,141 )						951						4,699						5,650						1,313						1995						Jan. 2014						28 yrs.
Retail facility in Cresskill, NJ						—						2,366						5,482						—						19						2,366						5,501						7,867						1,398						1975						Jan. 2014						31 yrs.
Retail facility in Livingston, NJ						—						2,932						2,001						—						14						2,932						2,015						4,947						587						1966						Jan. 2014						27 yrs.
Retail facility in Montclair, NJ						—						1,905						1,403						—						6						1,905						1,409						3,314						410						1950						Jan. 2014						27 yrs.
Retail facility in Morristown, NJ						—						3,258						8,352						—						26						3,258						8,378						11,636						2,441						1973						Jan. 2014						27 yrs.
Retail facility in Summit, NJ						—						1,228						1,465						—						8						1,228						1,473						2,701						429						1950						Jan. 2014						27 yrs.
Industrial facilities in Georgetown, TX and Woodland, WA						—						965						4,113						—						—						965						4,113						5,078						965						1998; 2001						Jan. 2014						33 - 35 yrs.
Education facilities in Union, NJ; Allentown and Philadelphia, PA; and Grand Prairie, TX						—						5,365						7,845						—						5						5,365						7,850						13,215						2,233						Various						Jan. 2014						28 yrs.
Industrial facility in Salisbury, NC						—						1,499						8,185						—						—						1,499						8,185						9,684						2,335						2000						Jan. 2014						28 yrs.
Industrial facility in Twinsburg, OH and office facility in Plymouth, MI						—						2,831						10,565						386						( 2,244 )						2,501						9,037						11,538						2,553						1991; 1995						Jan. 2014						27 yrs.
Industrial facility in Cambridge, Canada						—						1,849						7,371						—						( 1,110 )						1,626						6,484						8,110						1,643						2001						Jan. 2014						31 yrs.
Industrial facilities in Peru, IL; Huber Heights, Lima, and Sheffield, OH; and Lebanon, TN						—						2,962						17,832						—						—						2,962						17,832						20,794						4,517						Various						Jan. 2014						31 yrs.
Industrial facility in Ramos Arizpe, Mexico						—						1,059						2,886						—						—						1,059						2,886						3,945						729						2000						Jan. 2014						31 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Industrial facilities in Salt Lake City, UT						—						2,783						3,773						—						—						2,783						3,773						6,556						955						1983; 2002						Jan. 2014						31 - 33 yrs.
Net-lease student housing facility in Blairsville, PA						—						1,631						23,163						—						—						1,631						23,163						24,794						6,385						2005						Jan. 2014						33 yrs.
Education facility in Mooresville, NC						966						1,795						15,955						—						—						1,795						15,955						17,750						501						2002						Jan. 2014						33 yrs.
Warehouse facilities in Atlanta, Doraville, and Rockmart, GA						—						6,488						77,192						—						—						6,488						77,192						83,680						21,418						1959; 1962; 1991						Jan. 2014						23 - 33 yrs.
Warehouse facility in Muskogee, OK						—						554						4,353						—						( 3,437 )						158						1,312						1,470						317						1992						Jan. 2014						33 yrs.
Industrial facility in Richmond, MO						—						2,211						8,505						747						—						2,211						9,252						11,463						2,584						1996						Jan. 2014						28 yrs.
Industrial facility in Tuusula, Finland						—						6,173						10,321						—						( 2,769 )						5,137						8,588						13,725						2,666						1975						Jan. 2014						26 yrs.
Office facility in Turku, Finland						—						5,343						34,106						1,320						( 6,662 )						4,445						29,662						34,107						8,091						1981						Jan. 2014						28 yrs.
Industrial facility in Turku, Finland						—						1,105						10,243						—						( 1,890 )						920						8,538						9,458						2,437						1981						Jan. 2014						28 yrs.
Industrial facility in Baraboo, WI						—						917						10,663						1,403						—						917						12,066						12,983						6,509						1988						Jan. 2014						13 yrs.
Warehouse facility in Phoenix, AZ						—						6,747						21,352						380						—						6,747						21,732						28,479						6,211						1996						Jan. 2014						28 yrs.
Land in Calgary, Canada						—						3,721						—						—						( 448 )						3,273						—						3,273						—						N/A						Jan. 2014						N/A
Industrial facilities in Sandersville, GA; Erwin, TN; and Gainesville, TX						1,024						955						4,779						—						—						955						4,779						5,734						1,220						1950; 1986; 1996						Jan. 2014						31 yrs.
Industrial facility in Buffalo Grove, IL						3,523						1,492						12,233						—						—						1,492						12,233						13,725						3,132						1996						Jan. 2014						31 yrs.
Industrial facilities in West Jordan, UT and Tacoma, WA; office facility in Eugene, OR; and warehouse facility in Perris, CA						—						8,989						5,435						—						8						8,989						5,443						14,432						1,534						Various						Jan. 2014						28 yrs.
Office facility in Carlsbad, CA						—						3,230						5,492						—						—						3,230						5,492						8,722						1,843						1999						Jan. 2014						24 yrs.
Movie theater in Pensacola, FL						—						1,746						—						—						5,181						1,746						5,181						6,927						206						2001						Jan. 2014						33 yrs.
Movie theater in Port St. Lucie, FL						—						4,654						2,576						—						—						4,654						2,576						7,230						746						2000						Jan. 2014						27 yrs.
Industrial facility in Nurieux-Volognat, France						—						121						5,328						—						( 814 )						100						4,535						4,635						1,110						2000						Jan. 2014						32 yrs.
Industrial facility in Monheim, Germany						—						2,500						5,727						—						( 196 )						2,445						5,586						8,031						49						1992						Jan. 2014						32 yrs.
Warehouse facility in Suwanee, GA						—						2,330						8,406						—						—						2,330						8,406						10,736						1,967						1995						Jan. 2014						34 yrs.
Retail facilities in Wichita, KS and Oklahoma City, OK and warehouse facility in Wichita, KS						—						1,878						8,579						3,128						( 89 )						1,878						11,618						13,496						2,992						1954; 1975; 1984						Jan. 2014						24 yrs.
Industrial facilities in Fort Dodge, IA and Menomonie and Oconomowoc, WI						—						1,403						11,098						—						—						1,403						11,098						12,501						5,407						1996						Jan. 2014						16 yrs.
Industrial facility in Mesa, AZ						—						2,888						4,282						—						—						2,888						4,282						7,170						1,244						1991						Jan. 2014						27 yrs.
Industrial facility in North Amityville, NY						—						3,486						11,413						—						—						3,486						11,413						14,899						3,474						1981						Jan. 2014						26 yrs.
Industrial facility in Fort Collins, CO						—						821						7,236						—						—						821						7,236						8,057						1,745						1993						Jan. 2014						33 yrs.
Warehouse facility in Elk Grove Village, IL						—						4,037						7,865						—						—						4,037						7,865						11,902						784						1980						Jan. 2014						22 yrs.
Office facility in Washington, MI						—						4,085						7,496						—						—						4,085						7,496						11,581						1,812						1990						Jan. 2014						33 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Office facility in Houston, TX						—						522						7,448						227						—						522						7,675						8,197						2,315						1999						Jan. 2014						27 yrs.
Industrial facilities in Conroe, Odessa, and Weimar, TX and industrial and office facility in Houston, TX						—						4,049						13,021						—						133						4,049						13,154						17,203						5,578						Various						Jan. 2014						12 - 22 yrs.
Education facility in Sacramento, CA						24,452						—						13,715						—						—						—						13,715						13,715						3,249						2005						Jan. 2014						34 yrs.
Industrial facility in Sankt Ingbert, Germany						—						2,226						17,460						—						814						2,318						18,182						20,500						904						1960						Jan. 2014						34 yrs.
Industrial facilities in City of Industry, CA; Chelmsford, MA; and Lancaster, TX						—						5,138						8,387						—						43						5,138						8,430						13,568						2,408						1969; 1974; 1984						Jan. 2014						27 yrs.
Office facility in Tinton Falls, NJ						—						1,958						7,993						725						—						1,958						8,718						10,676						2,171						2001						Jan. 2014						31 yrs.
Industrial facility in Woodland, WA						—						707						1,562						—						—						707						1,562						2,269						351						2009						Jan. 2014						35 yrs.
Warehouse facilities in Gyál and Herceghalom, Hungary						—						14,601						21,915						—						( 6,133 )						12,148						18,235						30,383						7,070						2002; 2004						Jan. 2014						21 yrs.
Industrial facility in Windsor, CT						—						453						637						3,422						( 83 )						453						3,976						4,429						569						1999						Jan. 2014						33 yrs.
Industrial facility in Aurora, CO						—						574						3,999						—						—						574						3,999						4,573						807						2012						Jan. 2014						40 yrs.
Office facility in Chandler, AZ						—						5,318						27,551						105						—						5,318						27,656						32,974						6,221						2000						Mar. 2014						40 yrs.
Warehouse facility in University Park, IL						—						7,962						32,756						221						—						7,962						32,977						40,939						7,187						2008						May 2014						40 yrs.
Office facility in Stavanger, Norway						—						10,296						91,744						—						( 30,175 )						7,321						64,544						71,865						12,102						1975						Aug. 2014						40 yrs.
Laboratory facility in Westborough, MA						—						3,409						37,914						53,065						—						3,409						90,979						94,388						10,458						1992						Aug. 2014						40 yrs.
Office facility in Andover, MA						—						3,980						45,120						323						—						3,980						45,443						49,423						8,723						2013						Oct. 2014						40 yrs.
Office facility in Newport, United Kingdom						—						—						22,587						—						( 3,654 )						—						18,933						18,933						3,460						2014						Oct. 2014						40 yrs.
Industrial facility in Lewisburg, OH						—						1,627						13,721						—						—						1,627						13,721						15,348						2,757						2014						Nov. 2014						40 yrs.
Industrial facility in Opole, Poland						—						2,151						21,438						—						( 2,102 )						1,960						19,527						21,487						4,035						2014						Dec. 2014						38 yrs.
Office facilities located throughout Spain						—						51,778						257,624						10						( 22,516 )						50,911						235,985						286,896						43,111						Various						Dec. 2014						Various
Retail facilities located throughout the United Kingdom						—						66,319						230,113						277						( 43,800 )						56,372						196,537						252,909						45,277						Various						Jan. 2015						20 - 40 yrs.
Warehouse facility in Rotterdam, Netherlands						—						—						33,935						20,767						232						—						54,934						54,934						7,608						2014						Feb. 2015						40 yrs.
Retail facility in Bad Fischau, Austria						—						2,855						18,829						—						1,108						3,001						19,791						22,792						3,888						1998						Apr. 2015						40 yrs.
Industrial facility in Oskarshamn, Sweden						—						3,090						18,262						—						( 1,860 )						2,821						16,671						19,492						2,997						2015						Jun. 2015						40 yrs.
Office facility in Sunderland, United Kingdom						—						2,912						30,140						—						( 4,464 )						2,518						26,070						28,588						4,843						2007						Aug. 2015						40 yrs.
Industrial facilities in Gersthofen and Senden, Germany and Leopoldsdorf, Austria						—						9,449						15,838						—						440						9,613						16,114						25,727						3,176						2008; 2010						Aug. 2015						40 yrs.
Net-lease hotels in Clive, IA; Baton Rouge, LA; St. Louis, MO; Greensboro, NC; Mount Laurel, NJ; and Fort Worth, TX						—						—						49,190						17,396						—						17,396						49,190						66,586						9,001						1988; 1989; 1990						Oct. 2015						38 - 40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Retail facilities in Almere, Amsterdam, Eindhoven, Houten, Nieuwegein, Utrecht, Veghel, and Zwaag, Netherlands						—						5,698						38,130						79						2,391						6,008						40,290						46,298						7,668						Various						Nov. 2015						30 - 40 yrs.
Office facility in Irvine, CA						—						7,626						16,137						—						—						7,626						16,137						23,763						2,552						1977						Dec. 2015						40 yrs.
Education facility in Windermere, FL						—						5,090						34,721						15,333						—						5,090						50,054						55,144						10,183						1998						Apr. 2016						38 yrs.
Industrial facilities located throughout the United States						—						66,845						87,575						65,400						( 56,517 )						49,680						113,623						163,303						24,613						Various						Apr. 2016						Various
Industrial facilities in North Dumfries and Ottawa, Canada						—						17,155						10,665						—						( 17,990 )						6,097						3,733						9,830						1,637						1967; 1974						Apr. 2016						28 yrs.
Education facilities in Coconut Creek, FL and Houston, TX						—						15,550						83,862						63,830						—						15,550						147,692						163,242						22,173						1979; 1984						May 2016						37 - 40 yrs.
Office facility in Southfield, MI and warehouse facilities in London, KY and Gallatin, TN						—						3,585						17,254						—						—						3,585						17,254						20,839						2,517						1969; 1987; 2000						Nov. 2016						35 - 36 yrs.
Industrial facilities in Brampton, Toronto, and Vaughan, Canada						—						28,759						13,998						—						—						28,759						13,998						42,757						2,433						Various						Nov. 2016						28 - 35 yrs.
Industrial facilities in Queretaro and San Juan del Rio, Mexico						—						5,152						12,614						—						—						5,152						12,614						17,766						1,785						Various						Dec. 2016						28 - 40 yrs.
Industrial facility in Chicago, IL						—						2,222						2,655						3,511						—						2,222						6,166						8,388						1,393						1985						Jun. 2017						30 yrs.
Industrial facility in Zawiercie, Poland						—						395						102						10,378						( 316 )						383						10,176						10,559						939						2018						Aug. 2017						40 yrs.
Office facility in Roseville, MN						—						2,560						16,025						141						—						2,560						16,166						18,726						1,872						2001						Nov. 2017						40 yrs.
Industrial facility in Radomsko, Poland						—						1,718						59						14,454						( 501 )						1,670						14,060						15,730						1,172						2018						Nov. 2017						40 yrs.
Warehouse facility in Sellersburg, IN						—						1,016						3,838						—						—						1,016						3,838						4,854						514						2000						Feb. 2018						36 yrs.
Retail and warehouse facilities in Appleton, Madison, and Waukesha, WI						—						5,512						61,230						—						—						5,465						61,277						66,742						7,161						1995; 2004						Mar. 2018						36 - 40 yrs.
Office and warehouse facilities located throughout Denmark						—						20,304						185,481						—						( 4,177 )						19,892						181,716						201,608						20,077						Various						Jun. 2018						25 - 41 yrs.
Retail facilities located throughout the Netherlands						—						38,475						117,127						—						( 4,236 )						37,428						113,938						151,366						14,011						Various						Jul. 2018						26 - 30 yrs.
Industrial facility in Oostburg, WI						—						786						6,589						—						—						786						6,589						7,375						1,023						2002						Jul. 2018						35 yrs.
Warehouse facility in Kampen, Netherlands						—						3,251						12,858						126						( 363 )						3,177						12,695						15,872						1,765						1976						Jul. 2018						26 yrs.
Warehouse facility in Azambuja, Portugal						—						13,527						35,631						28,067						( 2,159 )						13,235						61,831						75,066						5,284						1994						Sep. 2018						28 yrs.
Retail facilities in Amsterdam, Moordrecht, and Rotterdam, Netherlands						—						2,582						18,731						11,338						( 142 )						2,569						29,940						32,509						2,689						Various						Oct. 2018						27 - 37 yrs.
Office and warehouse facilities in Bad Wünnenberg and Soest, Germany						—						2,916						39,687						—						( 251 )						2,898						39,454						42,352						3,351						1982; 1986						Oct. 2018						40 yrs.
Industrial facility in Norfolk, NE						—						802						3,686						—						—						802						3,686						4,488						396						1975						Oct. 2018						40 yrs.
Education facility in Chicago, IL						—						7,720						17,266						—						( 7,945 )						5,113						11,928						17,041						1,459						1912						Oct. 2018						40 yrs.
Fitness facilities in Phoenix, AZ and Columbia, MD						—						18,286						33,030						—						—						18,286						33,030						51,316						2,778						2006						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Retail facility in Gorzow, Poland						—						1,736						8,298						—						( 59 )						1,726						8,249						9,975						752						2008						Oct. 2018						40 yrs.
Industrial facilities in Sergeant Bluff, IA; Bossier City, LA; and Alvarado, TX						9,349						6,460						49,462						—						—						6,460						49,462						55,922						4,504						Various						Oct. 2018						40 yrs.
Industrial facility in Glendale Heights, IL						—						4,237						45,484						—						—						4,237						45,484						49,721						1,822						1991						Oct. 2018						38 yrs.
Industrial facilities in Mayodan, Sanford, and Stoneville, NC						—						3,505						20,913						—						—						3,505						20,913						24,418						1,438						1992; 1997; 1998						Oct. 2018						29 yrs.
Warehouse facility in Dillon, SC						—						3,424						43,114						—						—						3,424						43,114						46,538						3,926						2001						Oct. 2018						40 yrs.
Office facility in Birmingham, United Kingdom						—						7,383						7,687						—						650						7,702						8,018						15,720						667						2009						Oct. 2018						40 yrs.
Retail facilities located throughout Spain						—						17,626						44,501						—						( 365 )						17,523						44,239						61,762						3,795						Various						Oct. 2018						40 yrs.
Warehouse facility in Gadki, Poland						—						1,376						6,137						—						( 44 )						1,368						6,101						7,469						529						2011						Oct. 2018						40 yrs.
Office facility in The Woodlands, TX						—						1,697						52,289						—						—						1,697						52,289						53,986						4,243						2009						Oct. 2018						40 yrs.
Office facility in Hoffman Estates, IL						—						5,550						14,214						—						—						5,550						14,214						19,764						1,196						2009						Oct. 2018						40 yrs.
Warehouse facility in Zagreb, Croatia						—						15,789						33,287						—						( 288 )						15,696						33,092						48,788						4,167						2001						Oct. 2018						26 yrs.
Industrial facilities in Middleburg Heights and Union Township, OH						4,333						1,295						13,384						—						—						1,295						13,384						14,679						1,115						1990; 1997						Oct. 2018						40 yrs.
Retail facility in Las Vegas, NV						—						—						79,720						—						—						—						79,720						79,720						6,325						2012						Oct. 2018						40 yrs.
Industrial facilities located in Phoenix, AZ; Colton, Fresno, Los Angeles, Orange, Pomona, and San Diego, CA; Holly Hill and Safety Harbor, FL; Rockmart, GA; Durham, NC; Columbia, SC; Ooltewah, TN; and Dallas, TX						—						20,517						14,135						—						30,060						22,585						42,127						64,712						2,353						Various						Oct. 2018						40 yrs.
Warehouse facility in Bowling Green, KY						—						2,652						51,915						—						—						2,652						51,915						54,567						4,849						2011						Oct. 2018						40 yrs.
Warehouse facilities in Cannock, Liverpool, Luton, Plymouth, Southampton, and Taunton United Kingdom						—						6,791						2,315						—						393						7,084						2,415						9,499						225						Various						Oct. 2018						40 yrs.
Industrial facility in Evansville, IN						—						180						22,095						—						—						180						22,095						22,275						1,795						2009						Oct. 2018						40 yrs.
Office facilities in Tampa, FL						—						3,889						49,843						759						—						3,889						50,602						54,491						4,178						1985; 2000						Oct. 2018						40 yrs.
Warehouse facility in Elorrio, Spain						—						7,858						12,728						—						( 120 )						7,812						12,654						20,466						1,213						1996						Oct. 2018						40 yrs.
Industrial and office facilities in Elberton, GA						—						879						2,014						—						—						879						2,014						2,893						230						1997; 2002						Oct. 2018						40 yrs.
Office facility in Tres Cantos, Spain						53,571						24,344						39,646						—						( 377 )						24,200						39,413						63,613						3,397						2002						Oct. 2018						40 yrs.
Office facility in Hartland, WI						2,430						1,454						6,406						—						—						1,454						6,406						7,860						572						2001						Oct. 2018						40 yrs.
Retail facilities in Dugo Selo, Kutina, Samobor, Spansko, and Zagreb, Croatia						—						5,549						12,408						1,625						6,572						6,767						19,387						26,154						2,229						2000; 2002; 2003						Oct. 2018						26 yrs.
Office and warehouse facilities located throughout the United States						—						42,793						193,666						—						—						42,793						193,666						236,459						17,037						Various						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Warehouse facilities in Breda, Elst, Gieten, Raalte, and Woerden, Netherlands						—						37,755						91,666						—						( 761 )						37,533						91,127						128,660						7,605						Various						Oct. 2018						40 yrs.
Warehouse facilities in Oxnard and Watsonville, CA						—						22,453						78,814						—						—						22,453						78,814						101,267						6,608						1975; 1994; 2002						Oct. 2018						40 yrs.
Retail facilities located throughout Italy						—						75,492						138,280						7,242						( 2,107 )						75,048						143,859						218,907						12,495						Various						Oct. 2018						40 yrs.
Land in Hudson, NY						—						2,405						—						—						—						2,405						—						2,405						—						N/A						Oct. 2018						N/A
Office facility in Houston, TX						—						2,136						2,344						—						—						2,136						2,344						4,480						229						1982						Oct. 2018						40 yrs.
Office facility in Martinsville, VA						—						1,082						8,108						—						—						1,082						8,108						9,190						722						2011						Oct. 2018						40 yrs.
Land in Chicago, IL						—						9,887						—						—						—						9,887						—						9,887						—						N/A						Oct. 2018						N/A
Industrial facility in Fraser, MI						—						1,346						9,551						—						—						1,346						9,551						10,897						824						2012						Oct. 2018						40 yrs.
Net-lease self-storage facilities located throughout the United States						—						19,583						108,971						—						—						19,583						108,971						128,554						9,785						Various						Oct. 2018						40 yrs.
Warehouse facility in Middleburg Heights, OH						—						542						2,507						—						—						542						2,507						3,049						209						2002						Oct. 2018						40 yrs.
Net-lease self-storage facility in Fort Worth, TX						—						691						6,295						—						—						691						6,295						6,986						578						2004						Oct. 2018						40 yrs.
Retail facilities in Delnice, Pozega, and Sesvete, Croatia						—						5,519						9,930						1,291						( 251 )						5,486						11,003						16,489						1,360						2011						Oct. 2018						27 yrs.
Office facilities in Eagan and Virginia, MN						—						16,302						91,239						—						( 722 )						15,954						90,865						106,819						7,988						Various						Oct. 2018						40 yrs.
Retail facility in Orlando, FL						—						6,262						25,134						430						—						6,371						25,455						31,826						2,046						2011						Oct. 2018						40 yrs.
Industrial facility in Avon, OH						—						1,447						5,564						—						—						1,447						5,564						7,011						503						2001						Oct. 2018						40 yrs.
Industrial facility in Chimelow, Poland						—						6,158						28,032						—						( 201 )						6,122						27,867						33,989						2,420						2012						Oct. 2018						40 yrs.
Net-lease self-storage facility in Fayetteville, NC						—						1,839						4,654						—						—						1,839						4,654						6,493						545						2001						Oct. 2018						40 yrs.
Retail facilities in Huntsville, AL; Bentonville, AR; Bossier City, LA; Lee's Summit, MO; Fayetteville, TN, and Fort Worth, TX						—						19,529						42,318						—						—						19,529						42,318						61,847						3,718						Various						Oct. 2018						40 yrs.
Education facilities in Montgomery, AL and Savannah, GA						13,061						5,508						12,032						—						—						5,508						12,032						17,540						1,045						1969; 2002						Oct. 2018						40 yrs.
Office facilities in St. Louis, MO						—						1,297						5,362						7,951						—						1,836						12,774						14,610						1,041						1995; 1999						Oct. 2018; Aug. 2021						40 yrs.
Office and warehouse facility in Zary, PL						—						2,062						10,034						—						( 71 )						2,050						9,975						12,025						888						2013						Oct. 2018						40 yrs.
Industrial facilities in San Antonio, TX and Sterling, VA						—						3,198						23,981						78,727						—						7,228						98,678						105,906						4,792						1980; 2020						Oct. 2018; Dec. 2018						40 yrs.
Industrial facility in Elk Grove Village, IL						—						5,511						10,766						2						—						5,511						10,768						16,279						914						1961						Oct. 2018						40 yrs.
Industrial facility in Portage, WI						4,052						3,450						7,797						—						—						3,450						7,797						11,247						746						1970						Oct. 2018						40 yrs.
Office facility in Warrenville, IL						—						3,662						23,711						—						—						3,662						23,711						27,373						1,987						2002						Oct. 2018						40 yrs.
Warehouse facility in Saitama Prefecture, Japan						—						13,507						25,301						5,778						( 6,369 )						12,641						25,576						38,217						1,995						2007						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Retail facility in Dallas, TX						—						2,977						16,168						—						—						2,977						16,168						19,145						1,316						1913						Oct. 2018						40 yrs.
Office facility in Houston, TX						—						23,161						104,266						919						—						23,161						105,185						128,346						8,465						1973						Oct. 2018						40 yrs.
Retail facilities located throughout Croatia						—						9,000						13,002						1,415						( 4,722 )						7,757						10,938						18,695						1,214						Various						Oct. 2018						29 - 37 yrs.
Office facility in Northbrook, IL						—						—						493						—						—						—						493						493						156						2007						Oct. 2018						40 yrs.
Education facilities in Chicago, IL						—						18,510						163						—						( 11,855 )						6,744						74						6,818						33						2014; 2015						Oct. 2018						40 yrs.
Warehouse facility in Dillon, SC						—						3,516						44,933						—						—						3,516						44,933						48,449						4,061						2013						Oct. 2018						40 yrs.
Net-lease self-storage facilities in New York City, NY						—						29,223						77,202						414						—						29,223						77,616						106,839						6,203						Various						Oct. 2018						40 yrs.
Net-lease self-storage facility in Hilo, HI						—						769						12,869						—						—						769						12,869						13,638						1,034						2007						Oct. 2018						40 yrs.
Net-lease self-storage facility in Clearwater, FL						—						1,247						5,733						—						—						1,247						5,733						6,980						525						2001						Oct. 2018						40 yrs.
Warehouse facilities in Gadki, Poland						—						10,422						47,727						57						( 341 )						10,361						47,504						57,865						4,183						2007; 2010						Oct. 2018						40 yrs.
Net-lease self-storage facility in Orlando, FL						—						1,070						8,686						—						—						1,070						8,686						9,756						749						2000						Oct. 2018						40 yrs.
Retail facility in Lewisville, TX						—						3,485						11,263						—						—						3,485						11,263						14,748						955						2004						Oct. 2018						40 yrs.
Industrial facility in Wageningen, Netherlands						—						5,227						18,793						—						142						5,197						18,965						24,162						1,645						2013						Oct. 2018						40 yrs.
Office facility in Haibach, Germany						7,920						1,767						12,229						—						( 6,885 )						850						6,261						7,111						893						1993						Oct. 2018						40 yrs.
Net-lease self-storage facility in Palm Coast, FL						—						1,994						4,982						—						—						1,994						4,982						6,976						536						2001						Oct. 2018						40 yrs.
Office facility in Auburn Hills, MI						—						1,910						6,773						—						—						1,910						6,773						8,683						586						2012						Oct. 2018						40 yrs.
Net-lease self-storage facility in Holiday, FL						—						1,730						4,213						—						—						1,730						4,213						5,943						441						1975						Oct. 2018						40 yrs.
Office facility in Tempe, AZ						13,661						—						19,533						—						—						—						19,533						19,533						1,635						2000						Oct. 2018						40 yrs.
Office facility in Tucson, AZ						—						2,448						17,353						—						—						2,448						17,353						19,801						1,472						2002						Oct. 2018						40 yrs.
Industrial facility in Drunen, Netherlands						—						2,316						9,370						—						( 68 )						2,303						9,315						11,618						787						2014						Oct. 2018						40 yrs.
Industrial facility New Concord, OH						1,306						958						2,309						—						—						958						2,309						3,267						238						1999						Oct. 2018						40 yrs.
Office facility in Krakow, Poland						—						2,381						6,212						—						( 50 )						2,367						6,176						8,543						526						2003						Oct. 2018						40 yrs.
Retail facility in Gelsenkirchen, Germany						12,215						2,178						17,097						—						( 113 )						2,165						16,997						19,162						1,432						2000						Oct. 2018						40 yrs.
Warehouse facilities in Mszczonow and Tomaszow Mazowiecki, Poland						—						8,782						53,575						—						( 367 )						8,730						53,260						61,990						4,862						1995; 2000						Oct. 2018						40 yrs.
Office facility in Plymouth, MN						—						2,871						26,353						456						—						2,871						26,809						29,680						2,245						1999						Oct. 2018						40 yrs.
Office facility in San Antonio, TX						—						3,094						16,624						—						—						3,094						16,624						19,718						1,419						2002						Oct. 2018						40 yrs.
Warehouse facility in Sered, Slovakia						—						3,428						28,005						—						( 185 )						3,408						27,840						31,248						2,369						2004						Oct. 2018						40 yrs.
Industrial facility in Tuchomerice, Czech Republic						—						7,864						27,006						—						( 205 )						7,818						26,847						34,665						2,255						1998						Oct. 2018						40 yrs.
Office facility in Warsaw, Poland						34,427						—						44,990						—						( 265 )						—						44,725						44,725						3,664						2015						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Warehouse facility in Kaunas, Lithuania						37,507						10,199						47,391						—						( 339 )						10,139						47,112						57,251						4,053						2008						Oct. 2018						40 yrs.
Net-lease student housing facility in Jacksonville, FL						11,686						906						17,020						—						—						906						17,020						17,926						1,394						2015						Oct. 2018						40 yrs.
Warehouse facilities in Houston, TX						—						791						1,990						—						—						791						1,990						2,781						178						1972						Oct. 2018						40 yrs.
Office facility in Oak Creek, WI						—						2,858						11,055						—						—						2,858						11,055						13,913						995						2000						Oct. 2018						40 yrs.
Warehouse facilities in Shelbyville, IN; Kalamazoo, MI; Tiffin, OH; Andersonville, TN; and Millwood, WV						—						2,868						37,571						—						—						2,868						37,571						40,439						3,440						Various						Oct. 2018						40 yrs.
Warehouse facility in Perrysburg, OH						—						806						11,922						—						—						806						11,922						12,728						1,127						1974						Oct. 2018						40 yrs.
Warehouse facility in Dillon, SC						—						620						46,319						434						—						620						46,753						47,373						3,253						2019						Oct. 2018						40 yrs.
Warehouse facility in Zabia Wola, Poland						15,973						4,742						23,270						5,636						( 166 )						4,715						28,767						33,482						2,388						1999						Oct. 2018						40 yrs.
Office facility in Buffalo Grove, IL						—						2,224						6,583						—						—						2,224						6,583						8,807						569						1992						Oct. 2018						40 yrs.
Warehouse facilities in McHenry, IL						—						5,794						21,141						—						—						5,794						21,141						26,935						2,665						1990; 1999						Dec. 2018						27 - 28 yrs.
Industrial facilities in Chicago, Cortland, Forest View, Morton Grove, and Northbrook, IL and Madison and Monona, WI						—						23,267						9,166						—						—						23,267						9,166						32,433						1,091						Various						Dec. 2018; Dec. 2019						35 - 40 yrs.
Warehouse facility in Kilgore, TX						—						3,002						36,334						14,096						( 6 )						3,002						50,424						53,426						4,023						2007						Dec. 2018						37 yrs.
Industrial facility in San Luis Potosi, Mexico						—						2,787						12,945						—						—						2,787						12,945						15,732						1,149						2009						Dec. 2018						39 yrs.
Industrial facility in Legnica, Poland						—						995						9,787						6,007						( 116 )						988						15,685						16,673						1,510						2002						Dec. 2018						29 yrs.
Industrial facility in Meru, France						—						4,231						14,731						8						( 85 )						4,212						14,673						18,885						1,669						1997						Dec. 2018						29 yrs.
Education facility in Portland, OR						—						2,396						23,258						4,218						—						2,396						27,476						29,872						2,401						2006						Feb. 2019						40 yrs.
Office facility in Morrisville, NC						—						2,374						30,140						2,172						—						2,374						32,312						34,686						2,476						1998						Mar. 2019						40 yrs.
Warehouse facility in Inwood, WV						—						3,265						36,692						—						—						3,265						36,692						39,957						2,804						2000						Mar. 2019						40 yrs.
Industrial facility in Hurricane, UT						—						1,914						37,279						—						—						1,914						37,279						39,193						2,694						2011						Mar. 2019						40 yrs.
Industrial facility in Bensenville, IL						—						8,640						4,948						—						300						8,940						4,948						13,888						574						1981						Mar. 2019						40 yrs.
Industrial facility in Katowice, Poland						—						—						764						15,163						471						—						16,398						16,398						859						2019						Apr. 2019						40 yrs.
Industrial facilities in Westerville, OH and North Wales, PA						—						1,545						6,508						—						—						1,545						6,508						8,053						564						1960; 1997						May 2019						40 yrs.
Industrial facilities in Fargo, ND; Norristown, PA; and Atlanta, TX						—						1,616						5,589						—						—						1,616						5,589						7,205						590						Various						May 2019						40 yrs.
Industrial facilities in Chihuahua and Juarez, Mexico						—						3,426						7,286						—						—						3,426						7,286						10,712						696						1983; 1986; 1991						May 2019						40 yrs.
Warehouse facility in Statesville, NC						—						1,683						13,827						—						—						1,683						13,827						15,510						1,072						1979						Jun. 2019						40 yrs.
Industrial facilities in Searcy, AR and Conestoga, PA						—						4,290						51,410						11,027						—						4,678						62,049						66,727						4,273						1950; 1951						Jun. 2019; Apr. 2021						40 yrs.
Industrial facilities in Hartford and Milwaukee, WI						—						1,471						21,293						—						—						1,471						21,293						22,764						1,565						1964; 1992; 1993						Jul. 2019						40 yrs.
Industrial facilities in Brockville and Prescott, Canada						—						2,025						9,519						—						—						2,025						9,519						11,544						702						1955; 1995						Jul. 2019						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Industrial facility in Dordrecht, Netherlands						—						3,233						10,954						—						428						3,335						11,280						14,615						655						1986						Sep. 2019						40 yrs.
Industrial facilities in York, PA and Lexington, SC						—						4,155						22,930						—						—						4,155						22,930						27,085						1,799						1968; 1971						Oct. 2019						40 yrs.
Industrial facility in Queretaro, Mexico						—						2,851						12,748						—						( 3 )						2,851						12,745						15,596						903						1999						Oct. 2019						40 yrs.
Office facility in Dearborn, MI						—						1,431						5,402						—						—						1,431						5,402						6,833						393						2002						Oct. 2019						40 yrs.
Industrial facilities in Houston, TX and Metairie, LA and office facilities in Houston, TX and Mason, OH						—						6,130						24,981						2,145						—						6,130						27,126						33,256						1,649						Various						Nov. 2019						40 yrs.
Industrial facility in Pardubice, Czech Republic						—						1,694						8,793						436						276						1,741						9,458						11,199						534						1970						Nov. 2019						40 yrs.
Warehouse facilities in Brabrand, Denmark and Arlandastad, Sweden						—						6,499						27,899						42						1,503						6,803						29,140						35,943						1,691						2012; 2017						Nov. 2019						40 yrs.
Retail facility in Hamburg, PA						—						4,520						34,167						—						—						4,520						34,167						38,687						1,996						2003						Dec. 2019						40 yrs.
Warehouse facility in Charlotte, NC						—						6,481						82,936						—						—						6,481						82,936						89,417						4,782						1995						Dec. 2019						40 yrs.
Warehouse facility in Buffalo Grove, IL						—						3,287						10,167						—						—						3,287						10,167						13,454						802						1987						Dec. 2019						40 yrs.
Industrial facility in Hvidovre, Denmark						—						1,931						4,243						—						100						1,971						4,303						6,274						311						2007						Dec. 2019						40 yrs.
Warehouse facility in Huddersfield, United Kingdom						—						8,659						29,752						—						799						8,839						30,371						39,210						1,612						2005						Dec. 2019						40 yrs.
Warehouse facility in Newark, United Kingdom						—						21,869						74,777						—						2,521						22,439						76,728						99,167						3,810						2006						Jan. 2020						40 yrs.
Industrial facility in Langen, Germany						—						14,160						7,694						32,169						( 3,028 )						13,232						37,763						50,995						856						2021						Jan. 2020						40 yrs.
Industrial facility in Aurora, OR						—						2,914						21,459						—						( 5,000 )						2,914						16,459						19,373						797						1976						Jan. 2020						40 yrs.
Warehouse facility in Vojens, Denmark						—						1,031						8,784						—						293						1,062						9,046						10,108						434						2020						Jan. 2020						40 yrs.
Office facility in Kitzingen, Germany						—						4,812						41,125						—						( 526 )						4,758						40,653						45,411						1,844						1967						Mar. 2020						40 yrs.
Warehouse facility in Knoxville, TN						—						2,455						47,446						—						—						2,455						47,446						49,901						1,802						2020						Jun. 2020						40 yrs.
Industrial facilities in Bluffton and Plymouth, IN; and Lawrence, KS						—						674						33,519						20,542						—						1,064						53,671						54,735						1,099						1981; 2014; 2021						Sep 2020; Dec. 2021						40 yrs.
Industrial facility in Huntley, IL						—						5,260						26,617						—						—						5,260						26,617						31,877						835						1996						Sep. 2020						40 yrs.
Industrial facilities in Winter Haven, FL; Belvedere, IL; and Fayetteville, NC						—						8,232						31,745						—						—						8,232						31,745						39,977						969						1954; 1984; 1997						Oct. 2020						40 yrs.
Retail facilities located throughout Spain						—						34,216						57,151						—						( 2,906 )						33,128						55,333						88,461						1,621						Various						Oct. 2020						40 yrs.
Warehouse facility in Little Canada, MN						—						3,384						23,422						—						—						3,384						23,422						26,806						686						1987						Oct. 2020						40 yrs.
Warehouse facility in Hurricane, UT						—						5,154						22,893						—						—						5,154						22,893						28,047						610						2005						Dec. 2020						40 yrs.
Industrial facilities in Bethlehem, PA and Waco, TX						—						4,673						19,111						—						—						4,673						19,111						23,784						507						Various						Dec. 2020						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																		Accumulated Depreciation (d)						Date of Construction						Date Acquired						Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings																		Land						Buildings						Total
Industrial facilities in St. Charles, MO and Green Bay, WI						—						2,966						20,055						—						—						2,966						20,055						23,021						521						1981; 2009						Dec. 2020						40 yrs.
Industrial facilities in Pleasanton, KS; Savage, MN; Grove City, OH; and Mahanoy City, PA						—						7,717						21,569						—						—						7,717						21,569						29,286						539						Various						Dec. 2020						40 yrs.
Outdoor advertising in Fort Washington, Huntington Valley, and West Chester, PA						—						—						492						—						—						—						492						492						11						2011; 2014; 2016						Jan. 2021						40 yrs.
Warehouse facilities in Grove City, OH and Anderson, SC						—						1,415						15,151						—						—						1,415						15,151						16,566						346						1995; 2001						Feb. 2021						40 yrs.
Office and retail facilities in NJ and PA						—						17,537						25,987						—						—						17,537						25,987						43,524						577						Various						Feb. 2021						40 yrs.
Land and warehouse facilities in CA						—						8,513						45,669						6						—						8,516						45,672						54,188						1,017						Various						Feb. 2021						40 yrs.
Retail facilities in France						—						15,954						104,578						—						( 4,310 )						15,384						100,838						116,222						1,899						1968; 1981; 1983						Apr. 2021						40 yrs.
Warehouse facility in Detroit, MI						—						3,625						47,743						—						—						3,625						47,743						51,368						814						1991						Apr. 2021						40 yrs.
Warehouse facility in Solihull, United Kingdom						—						42,137						123,315						—						( 4,479 )						40,996						119,977						160,973						1,989						2021						May 2021						40 yrs.
Net-lease student housing facility in New Rochelle, NY						—						3,617						21,590						—						—						3,617						21,590						25,207						356						2018						May 2021						40 yrs.
Industrial facility in Groveport, OH						—						—						26,639						—						—						—						26,639						26,639						440						1982						May 2021						40 yrs.
Industrial facility in Dakota, IL						—						1,970						50,369						—						—						1,970						50,369						52,339						807						1978						May 2021						40 yrs.
Industrial facility in San Jose, CA						—						12,808						31,714						—						—						12,808						31,714						44,522						506						1984						May 2021						40 yrs.
Warehouse facility in Opelika, AL						—						2,115						39,980						—						—						2,115						39,980						42,095						570						2005						Jun. 2021						40 yrs.
Warehouse facilities in Elk Grove Village and Niles, IL; and Guelph, Canada						—						12,932						25,096						—						—						12,932						25,096						38,028						354						1962; 1976; 1983						Jun. 2021						40 yrs.
Warehouse facility in Rome, NY						—						1,480						47,781						—						—						1,480						47,781						49,261						671						2021						Jun. 2021						40 yrs.
Warehouse facility in Frankfort, IN						—						5,423						95,915						—						—						5,423						95,915						101,338						841						2015						Aug. 2021						40 yrs.
Warehouse facility in Rogers, MN						—						1,871						20,959						—						—						1,871						20,959						22,830						164						2005						Sep. 2021						40 yrs.
Industrial facilities in Chattanooga, TN						—						4,859						29,302						—						—						4,859						29,302						34,161						149						2006; 2017						Oct. 2021						40 yrs.
Warehouse facility in Mankato, MN						—						2,979						11,619						—						—						2,979						11,619						14,598						40						1976						Nov. 2021						40 yrs.
Retail facilities in Denmark						—						2,695						38,428						—						255						2,711						38,667						41,378						66						Various						Dec. 2021						40 yrs.
Retail facilities in Poland						—						15,110						47,511						—						356						15,196						47,781						62,977						56						Various						Dec. 2021						40 yrs.
Industrial facility in Cary, IL						—						4,568						31,977						—						—						4,568						31,977						36,545						9						1975						Dec. 2021						40 yrs.
Retail facilities in the Netherlands						—						9,342						32,770						—						86						9,361						32,837						42,198						—						Various						Dec. 2021						40 yrs.
Outdoor advertising in Pennsauken, NJ						—						1,025						397						—						—						1,025						397						1,422						—						Various						Dec. 2021						40 yrs.
						$	349,800					$	2,303,743					$	9,077,373					$	844,244					$	( 548,175 )					$	2,151,327					$	9,525,858					$	11,677,185					$	1,448,020

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company												Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period Total						Date of Construction						Date Acquired
Description						Encumbrances						Land						Buildings
Direct Financing Method
Industrial facilities in Irving and Houston, TX						$	—					$	—					$	27,599					$	—					$	( 4,168 )					$	23,431					1978						Jan. 1998
Retail facility in Freehold, NJ						2,986						—						17,067						—						( 379 )						16,688						2004						Sep. 2012
Office facilities in Corpus Christi, Odessa, San Marcos, and Waco, TX						1,326						2,089						14,211						—						( 1,338 )						14,962						1969; 1996; 2000						Sep. 2012
Retail facilities located throughout Germany						—						28,734						145,854						5,582						( 57,048 )						123,122						Various						Sep. 2012
Warehouse facility in Brierley Hill, United Kingdom						—						2,147						12,357						—						( 1,175 )						13,329						1996						Sep. 2012
Retail facilities in El Paso and Fabens, TX						—						4,777						17,823						—						( 85 )						22,515						Various						Jan. 2014
Industrial facility in Dallas, TX						—						3,190						10,010						—						40						13,240						1968						Jan. 2014
Industrial facility in Eagan, MN						—						—						11,548						—						( 532 )						11,016						1975						Jan. 2014
Retail facility in Gronau, Germany						—						281						4,401						—						( 786 )						3,896						1989						Jan. 2014
Industrial and warehouse facility in Newbridge, United Kingdom						9,515						6,851						22,868						—						( 7,560 )						22,159						1998						Jan. 2014
Industrial facility in Mount Carmel, IL						—						135						3,265						—						( 247 )						3,153						1896						Jan. 2014
Retail facility in Vantaa, Finland						—						5,291						15,522						—						( 3,496 )						17,317						2004						Jan. 2014
Retail facility in Linköping, Sweden						—						1,484						9,402						—						( 3,073 )						7,813						2004						Jan. 2014
Industrial facility in Calgary, Canada						—						—						7,076						—						( 850 )						6,226						1965						Jan. 2014
Industrial facilities in Kearney, MO; Fair Bluff, NC; York, NE; Walbridge, OH; Middlesex Township, PA; Rocky Mount, VA; and Martinsburg, WV						—						5,780						40,860						—						( 561 )						46,079						Various						Jan. 2014
Industrial facility in Göppingen, Germany						—						10,717						60,120						—						( 16,093 )						54,744						1930						Jan. 2014
Industrial and office facility in Nagold, Germany						—						4,553						17,675						—						( 131 )						22,097						1994						Oct. 2018
Warehouse facilities in Bristol, Leeds, Liverpool, Luton, Newport, Plymouth, and Southampton, United Kingdom						—						1,062						23,087						—						951						25,100						Various						Oct. 2018
Warehouse facility in Gieten, Netherlands						—						—						15,258						—						( 138 )						15,120						1985						Oct. 2018
Warehouse facility in Oxnard, CA						—						—						10,960						—						( 995 )						9,965						1975						Oct. 2018
Industrial facilities in Bartow, FL; Momence, IL; Smithfield, NC; Hudson, NY; and Ardmore, OK						—						4,454						87,030						—						2,496						93,980						Various						Oct. 2018
Industrial facility in Countryside, IL						—						563						1,457						—						34						2,054						1981						Oct. 2018
Industrial facility in Clarksville, TN						3,225						1,680						10,180						—						( 82 )						11,778						1998						Oct. 2018
Industrial facility in Bluffton, IN						1,672						503						3,407						—						( 32 )						3,878						1975						Oct. 2018
Warehouse facility in Houston, TX						—						—						5,977						—						( 94 )						5,883						1972						Oct. 2018
Less: allowance for credit losses																														( 17,340 )						( 17,340 )
						$	18,724					$	84,291					$	595,014					$	5,582					$	( 112,682 )					$	572,205

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2021

(in thousands)

												Initial Cost to Company																		Cost Capitalized Subsequent to Acquisition (a)						Increase (Decrease) in Net Investments (b)						Gross Amount at which Carried at Close of Period (c) (d)																																										Life on which Depreciation in Latest Statement of Income is Computed
Description						Encumbrances						Land						Buildings						Personal Property																		Land						Buildings						Personal Property						Total						Accumulated Depreciation (d)						Date of Construction						Date Acquired
Land, Buildings and Improvements Attributable to Operating Properties – Hotels
Bloomington, MN						$	—					$	3,810					$	29,126					$	3,622					$	6,182					$	( 247 )					$	3,874					$	31,199					$	7,420					$	42,493					$	12,899					2008						Jan. 2014						34 yrs.
Land, Buildings and Improvements Attributable to Operating Properties – Self-Storage Facilities
Loves Park, IL						—						1,412						4,853						—						35						—						1,412						4,862						26						6,300						588						1997						Oct. 2018						40 yrs.
Cherry Valley, IL						—						1,339						4,160						—						3						—						1,339						4,160						3						5,502						486						1988						Oct. 2018						40 yrs.
Rockford, IL						—						695						3,873						—						26						—						695						3,890						9						4,594						413						1979						Oct. 2018						40 yrs.
Rockford, IL						—						87						785						—						—						—						87						785						—						872						75						1979						Oct. 2018						40 yrs.
Rockford, IL						—						454						4,724						—						12						—						454						4,733						3						5,190						414						1957						Oct. 2018						40 yrs.
Peoria, IL						—						444						4,944						—						238						—						443						5,164						19						5,626						625						1990						Oct. 2018						40 yrs.
East Peoria, IL						—						268						3,290						—						92						—						268						3,374						8						3,650						397						1986						Oct. 2018						40 yrs.
Loves Park, IL						—						721						2,973						—						17						—						721						2,990						—						3,711						325						1978						Oct. 2018						40 yrs.
Winder, GA						—						338						1,310						—						65						—						338						1,353						22						1,713						161						2006						Oct. 2018						40 yrs.
Winder, GA						—						821						3,180						—						21						—						821						3,190						11						4,022						367						2001						Oct. 2018						40 yrs.
						$	—					$	10,389					$	63,218					$	3,622					$	6,691					$	( 247 )					$	10,452					$	65,700					$	7,521					$	83,673					$	16,750

__________

(a) Consists of the cost of improvements subsequent to acquisition and acquisition costs, including construction costs on build-to-suit transactions, legal fees, appraisal fees, title costs, and other related professional fees. For business combinations, transaction costs are excluded.

(b) The increase (decrease) in net investment was primarily due to (i) sales of properties, (ii) impairment charges, (iii) changes in foreign currency exchange rates, (iv) allowances for credit loss ( Note 5 ), (v) reclassifications from net investments in direct financing leases to real estate subject to operating leases, and (vi) the amortization of unearned income from net investments in direct financing leases, which produces a periodic rate of return that at times may be greater or less than lease payments received.

(c) Excludes (i) gross lease intangible assets of $ 3.1 billion and the related accumulated amortization of $ 1.4 billion, (ii) gross lease intangible liabilities of $ 289.2 million and the related accumulated amortization of $ 105.9 million, (iii) sale-leasebacks classified as loans receivable of $ 217.2 million, (iv) secured loans receivable of $ 24.1 million (as disclosed in Schedule IV – Mortgage Loans on Real Estate ), (v) assets held for sale, net of $ 8.3 million, and (vi) real estate under construction of $ 114.5 million.

(d) A reconciliation of real estate and accumulated depreciation follows:

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W. P. CAREY INC.

NOTES TO SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION

(in thousands)

			Reconciliation of Land, Buildings and Improvements Subject to Operating Leases
			Years Ended December 31,
			2021						2020						2019
Beginning balance			$	10,736,752					$	9,703,504					$	8,717,612
Acquisitions			1,144,757						555,032						610,381
Foreign currency translation adjustment			( 267,018 )						290,559						( 37,032 )
Reclassification from real estate under construction			86,179						176,211						122,519
Dispositions			( 80,129 )						( 167,671 )						( 90,488 )
Reclassification from direct financing leases			76,929						183,789						76,934
Impairment charges			( 24,246 )						( 26,343 )						( 1,345 )
Capital improvements			14,589						35,722						18,860
Reclassification to assets held for sale			( 10,628 )						( 14,051 )						—
Reclassification from operating properties			—						—						291,750
CPA:17 Merger measurement period adjustments			—						—						( 5,687 )
Ending balance			$	11,677,185					$	10,736,752					$	9,703,504

			Reconciliation of Accumulated Depreciation for Land, Buildings and Improvements Subject to Operating Leases
			Years Ended December 31,
			2021						2020						2019
Beginning balance			$	1,206,912					$	950,452					$	724,550
Depreciation expense			286,347						259,337						232,927
Foreign currency translation adjustment			( 25,298 )						24,764						( 916 )
Dispositions			( 17,582 )						( 24,786 )						( 6,109 )
Reclassification to assets held for sale			( 2,359 )						( 2,855 )						—
Ending balance			$	1,448,020					$	1,206,912					$	950,452

			Reconciliation of Land, Buildings and Improvements Attributable to Operating Properties
			Years Ended December 31,
			2021						2020						2019
Beginning balance			$	83,476					$	83,083					$	466,050
Capital improvements			197						393						1,853
Reclassification to operating leases			—						—						( 291,750 )
Reclassification to assets held for sale			—						—						( 94,078 )
Reclassification from real estate under construction			—						—						1,008
Ending balance			$	83,673					$	83,476					$	83,083

			Reconciliation of Accumulated Depreciation for Land, Buildings and Improvements Attributable to Operating Properties
			Years Ended December 31,
			2021						2020						2019
Beginning balance			$	14,004					$	11,241					$	10,234
Depreciation expense			2,746						2,763						2,553
Reclassification to assets held for sale			—						—						( 1,546 )
Ending balance			$	16,750					$	14,004					$	11,241

At December 31, 2021, the aggregate cost of real estate that we and our consolidated subsidiaries own for federal income tax purposes was approximately $ 13.9 billion.

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SCHEDULE IV — MORTGAGE LOANS ON REAL ESTATE

December 31, 2021

(dollars in thousands)

						Interest Rate						Final Maturity Date						Carrying Amount
Description
Financing agreement — retail facility						7.5		%				Mar. 2025						$	12,893
Financing agreement — observation wheel						7.5		%				Mar. 2022						11,250
																		$	24,143

			Reconciliation of Mortgage Loans on Real Estate
			Years Ended December 31,
			2021						2020						2019
Beginning balance			$	24,143					$	47,737					$	57,737
Allowance for credit losses ( Note 5 )			—						( 12,594 )						—
Repayments			—						( 11,000 )						( 10,000 )
Ending balance			$	24,143					$	24,143					$	47,737

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