WPC 10-K Fiscal year ended Dec. 31, 2022

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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 August 1, 2022, a non-traded REIT that we advised, Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”) merged with and into one of our indirect subsidiaries (the “CPA:18 Merger”) ( Note 3 ). At December 31, 2022, we were the advisor to Carey European Student Housing Fund I, L.P. (“CESH”), a limited partnership formed for the purpose of developing, owning, and operating student housing properties in Europe ( Note 4 ).

We refer to CPA:18 – Global (prior to the CPA:18 Merger) and CESH collectively as the “Managed Programs.” We no longer raise capital for new or existing funds, but currently expect to continue managing CESH through the end of its life cycle ( Note 4 ).

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, 2022, our owned portfolio was comprised of our full or partial ownership interests in 1,449 properties, totaling approximately 176 million square feet (unaudited), substantially all of which were net leased to 392 tenants, with a weighted-average lease term of 10.8 years and an occupancy rate of 98.8 % (unaudited). In addition, at December 31, 2022, our portfolio was comprised of full or partial ownership interests in 87 operating properties, including 84 self-storage properties, two student housing properties, and one hotel, totaling approximately 6.6 million square feet (unaudited).

Investment Management — Through our TRSs, we manage the real estate investment portfolio for CESH, for which we earn asset management revenue. We may also be entitled to receive certain distributions pursuant to our advisory arrangements with CESH. At December 31, 2022, CESH owned (i) all or a portion of three net-leased properties, totaling approximately 0.4 million square feet (unaudited), all of which were leased to one tenant, with an occupancy rate of 100.0 % (unaudited), and (ii) one active build-to-suit project.

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

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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 (excluding the CPA:18 Merger).

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. Under the cost approach, the fair value of real estate is based on estimated costs to construct a vacant building with similar characteristics. Under the income approach, we use either the discounted cash flow method or the direct capitalization method. For the discounted cash flow method, 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. For the direct capitalization method, the fair value of real estate is determined (i) by the stabilized estimated net operating income for each property in the portfolio and (ii) 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;

• capitalization rates to be applied to an estimate of market rent at the beginning and/or 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.

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 — For acquired properties that do not qualify as sale-leaseback transactions, w e 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

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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.

For acquired properties with tenants in place, we record in-place lease intangible assets based on the estimated value ascribed to the avoidance of costs of leasing the properties for the remaining primary in-place lease terms. 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 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.

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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.

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 equity investments in real estate, we calculate the estimated fair value of the underlying investment’s real estate as described in Real Estate 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 depended on the timing and form of liquidity events for the Managed Programs ( Note 3 , Note 4 ). 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 net asset values. 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 Accounting Standards Update (“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.

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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 6 ), 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.

Upon the closing of the CPA:18 Merger, we acquired five consolidated VIEs and declassified three entities as VIEs.

At December 31, 2022 and 2021, we considered 16 and 14 entities to be VIEs, respectively, of which we consolidated 11 and six , 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,
			2022						2021
Land, buildings and improvements — net lease and other			$	590,390					$	426,831
Land, buildings and improvements — operating properties			143,390						—
Net investments in direct financing leases and loans receivable			144,103						144,103
In-place lease intangible assets and other			72,070						42,884
Above-market rent intangible assets			33,634						26,720
Accumulated depreciation and amortization			( 176,379 )						( 154,413 )
Total assets			843,500						500,884
Non-recourse mortgages, net			$	132,950					$	1,485
Below-market rent and other intangible liabilities, net			18,891						20,568
Total liabilities			199,633						46,302

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At December 31, 2022 and 2021, our five and eight unconsolidated VIEs included our interests in (i) three and six 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, 2022 and 2021, the net carrying amount of our investments in these entities was $ 693.4 million and $ 581.3 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 and financing 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 5 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.

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

We currently present Land, buildings and improvements — net lease and other and Land, buildings and improvements — operating properties on separate line items in the consolidated balance sheets. Previously, land, buildings and improvements attributable to net lease properties and operating properties were aggregated within Land, buildings and improvements in the consolidated balance sheets ( Note 5 ).

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,
			2022						2021						2020
Cash and cash equivalents			$	167,996					$	165,427					$	248,662
Restricted cash (a)			56,145						52,523						63,117
Total cash and cash equivalents and restricted cash			$	224,141					$	217,950					$	311,779

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(a) Restricted cash is included within Other assets, net on our consolidated balance sheets.

Real Estate and Operating Real Estate — 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.

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 9 ), our investment in shares of Guggenheim Credit Income Fund (“GCIF”) ( Note 9 ), 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 5 ). We record leases accounted for under the direct financing method as a net investment in direct financing leases ( Note 6 ). 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.

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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 $ 12.0 million, $ 7.2 million, and $ 5.9 million for the years ended December 31, 2022, 2021, and 2020, 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 4 .

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 6 ), 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 asset management revenue in connection with providing services to 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.

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.

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.

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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.

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 (loss) income 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 (loss) income as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive (loss) income 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 Watermark Lodging Trust, Inc. (“WLT”) management internalization ( Note 4 ), as well as the termination of the advisory agreements with CPA:18 – Global in connection with the CPA:18 Merger ( 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 CESH through the end of its life cycle. 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, were included within our Real Estate segment following the CWI 1 and CWI 2 Merger, since we were no longer 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 4 ).

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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 15 ). 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 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 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 and ATM 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.

CPA:18 Merger

On February 27, 2022, we and certain of our subsidiaries entered into a merger agreement with CPA:18 – Global, pursuant to which CPA:18 – Global would merge with and into one of our indirect subsidiaries in exchange for shares of our common stock and cash, subject to approval by the stockholders of CPA:18 – Global. The CPA:18 Merger and related transactions were approved by the stockholders of CPA:18 – Global on July 26, 2022 and completed on August 1, 2022.

At the effective time of the CPA:18 Merger, each share of CPA:18 – Global common stock issued and outstanding immediately prior to the effective time of the CPA:18 Merger was canceled and, in exchange for cancellation of such share, the rights attaching to such share were converted automatically into the right to receive (i) 0.098 shares of our common stock and (ii) $ 3.00 in cash, which we refer to herein as the Merger Consideration. Each share of CPA:18 – Global common stock owned by us or any of our subsidiaries immediately prior to the effective time of the CPA:18 Merger was automatically canceled and retired, and ceased to exist, for no Merger Consideration. In exchange for the 141,099,002 shares of CPA:18 – Global common stock that we and our subsidiaries did not previously own, we paid total merger consideration of approximately $ 1.6 billion,

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consisting of (i) the issuance of 13,786,302 shares of our common stock with a fair value of $ 1.2 billion, based on the closing price of our common stock on August 1, 2022 of $ 87.46 per share, (ii) cash consideration of $ 423.3 million, and (iii) cash of $ 0.1 million paid in lieu of issuing any fractional shares of our common stock. Pursuant to the terms of the definitive merger agreement, in connection with the closing of the CPA:18 Merger, we waived certain back-end fees that we would have otherwise been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our pre-closing advisory agreement with CPA:18 – Global.

Immediately prior to the closing of the CPA:18 Merger, CPA:18 – Global’s portfolio was comprised of full or partial ownership interests in 42 leased properties (including seven properties in which we already owned a partial ownership interest), substantially all of which were net leased with a weighted-average lease term of 7.0 years, an occupancy rate of 99.3 % (unaudited), and an estimated contractual minimum annualized base rent (“ABR”) totaling $ 81.0 million, as well as 65 self-storage operating properties and two student housing operating properties totaling 5.1 million square feet (unaudited). The related property-level debt was comprised of non-recourse mortgage loans with an aggregate consolidated fair value of approximately $ 900.2 million with a weighted-average annual interest rate of 5.1 % as of August 1, 2022. From the closing of the CPA:18 Merger through December 31, 2022, lease revenues, operating property revenues, and net income from properties acquired were $ 42.7 million, $ 39.2 million, and $ 12.3 million, respectively.

Two of the net lease properties that we acquired in the CPA:18 Merger were classified as Assets held for sale, with an aggregate fair value of $ 85.0 million at acquisition ( Note 5 ). From the closing of the CPA:18 Merger through December 31, 2022, lease revenues from these properties totaled $ 4.9 million. We sold one of these properties in August 2022 for total proceeds, net of selling costs, of $ 44.5 million, and recognized a loss on sale of $ 0.2 million ( Note 16 ).

Purchase Price Allocation

We accounted for the CPA:18 Merger as a business combination under the acquisition method of accounting. After consideration of all applicable factors pursuant to the business combination accounting rules, we were considered the “accounting acquirer” due to various factors, including the fact that our stockholders held the largest portion of the voting rights in the combined company upon completion of the CPA:18 Merger. Costs related to the CPA:18 Merger have been expensed as incurred and classified within Merger and other expenses in the consolidated statements of income, totaling $ 17.2 million for the year ended December 31, 2022.

The purchase price was allocated to the assets acquired and liabilities assumed, based upon their preliminary fair values at August 1, 2022. The following tables summarize the preliminary consideration and estimated fair values of the assets acquired and liabilities assumed in the acquisition, based on the current best estimate of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Investments in land, buildings and improvements, net investments in direct financing leases, non-recourse mortgages, and noncontrolling interests were based on preliminary valuation data and estimates.

			Preliminary Purchase Price Allocation (in thousands)
Total Consideration
Fair value of W. P. Carey shares of common stock issued			$	1,205,750
Cash consideration paid			423,297
Cash paid for fractional shares			138
Merger Consideration			1,629,185
Fair value of our equity interest in CPA:18 – Global prior to the CPA:18 Merger			88,299
Fair value of our equity interest in jointly owned investments with CPA:18 – Global prior to the CPA:18 Merger			28,574
			$	1,746,058

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			Preliminary Purchase Price Allocation (in thousands)
Assets
Land, buildings and improvements — net lease and other			$	881,613
Land, buildings and improvements — operating properties			1,000,447
Net investments in direct financing leases and loans receivable			38,517
In-place lease and other intangible assets			224,458
Above-market rent intangible assets			61,090
Assets held for sale			85,026
Cash and cash equivalents and restricted cash			331,063
Other assets, net (excluding restricted cash)			25,229
Total assets			2,647,443
Liabilities
Non-recourse mortgages, net			900,173
Accounts payable, accrued expenses and other liabilities			90,035
Below-market rent and other intangible liabilities			16,836
Deferred income taxes			52,320
Total liabilities			1,059,364
Total identifiable net assets			1,588,079
Noncontrolling interests			( 14,367 )
Goodwill			172,346
			$	1,746,058

Goodwill

The $ 172.3 million of goodwill recorded in the CPA:18 Merger was primarily due to the premium we paid over CPA:18 – Global’s estimated fair value. Management believes the premium is supported by several factors, including that the CPA:18 Merger (i) concludes our exit from the non-traded REIT business, (ii) adds a high-quality diversified portfolio of net lease assets that is well-aligned with our existing portfolio, (iii) enhances certain portfolio metrics, and (iv) adds an attractive portfolio of self-storage operating properties.

The fair value of the 13,786,302 shares of our common stock issued in the CPA:18 Merger as part of the consideration paid for CPA:18 – Global of $ 1.6 billion was derived from the closing market price of our common stock on the acquisition date. As required by GAAP, the fair value related to the assets acquired and liabilities assumed, as well as the shares exchanged, has been computed as of the date we gained control, which was the closing date of the CPA:18 Merger, in a manner consistent with the methodology described above.

Goodwill is not deductible for income tax purposes.

Equity Investments

During the third quarter of 2022, we recognized a gain on change in control of interests of approximately $ 22.5 million, which was the difference between the carrying value of approximately $ 65.8 million and the fair value of approximately $ 88.3 million of our previously held equity interest in 8,556,732 shares of CPA:18 – Global’s common stock.

The CPA:18 Merger also resulted in our acquisition of the remaining interests in four investments in which we already had a joint interest and accounted for under the equity method. Upon acquiring the remaining interests in these investments, we owned 100% of these investments and thus accounted for the acquisitions of these interests utilizing the purchase method of accounting. Due to the change in control of the four jointly owned investments that occurred, we recorded a gain on change in control of interests of approximately $ 11.4 million during the third quarter of 2022, which was the difference between our carrying values and the fair values of our previously held equity interests on August 1, 2022 of approximately $ 17.2 million and approximately $ 28.6 million, respectively. Subsequent to the CPA:18 Merger, we consolidate these wholly owned investments.

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The fair values of our previously held equity interests are based on the estimated fair market values of the underlying real estate and related mortgage debt, both of which were determined by management relying in part on a third party. Real estate valuation requires significant judgment. We determined the significant assumptions to be Level 3 with ranges for our previously held equity interests as follows:

• Market rents ranged from $ 8.65 per square foot to $ 21.00 per square foot;

• Discount rates applied to the estimated net operating income of each property ranged from approximately 5.75 % to 9.75 %;

• Discount rates applied to the estimated residual value of each property ranged from approximately 6.50 % to 8.50 %;

• Residual capitalization rates applied to the properties ranged from approximately 5.75 % to 8.00 %;

• The fair market value of the property level debt was determined based upon available market data for comparable liabilities and by applying selected discount rates to the stream of future debt payments; and

• Discount rates applied to the property level debt cash flows ranged from approximately 2.28 % to 5.50 %.

Pro Forma Financial Information (Unaudited)

The following consolidated pro forma financial information has been presented as if the CPA:18 Merger had occurred on January 1, 2021 for the years ended December 31, 2022 and 2021. The pro forma financial information is not necessarily indicative of what the actual results would have been had the CPA:18 Merger on that date, nor does it purport to represent the results of operations for future periods.

(in thousands)

			Years Ended December 31,
			2022						2021
Pro forma total revenues			$	1,590,233					$	1,509,828

Advisory Agreements and Partnership Agreements with the Managed Programs

We currently have advisory arrangements with CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain fund management expenses. Upon completion of the CPA:18 Merger on August 1, 2022 ( Note 3 ), our advisory agreements with CPA:18 – Global were terminated, and we ceased earning revenue from CPA:18 – Global. We no longer raise capital for new or existing funds, but we currently expect to continue to manage CESH and earn various fees (as described below) through the end of its life cycle.

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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,
			2022						2021						2020
Distributions of Available Cash (a)			$	8,746					$	7,345					$	7,225
Asset management revenue (b)			8,467						15,363						21,973
Reimbursable costs from affiliates (b)			2,518						4,035						8,855
Interest income on deferred acquisition fees and loans to affiliates (c)			112						120						369
Structuring and other advisory revenue (b)			—						—						494
			$	19,843					$	26,863					$	38,916

			Years Ended December 31,
			2022						2021						2020
CPA:18 – Global			$	17,854					$	22,867					$	22,200
CWI 1			—						—						5,662
CWI 2			—						—						4,668
CESH			1,989						3,713						4,723
WLT (reimbursed transition services)			—						283						1,663
			$	19,843					$	26,863					$	38,916

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(a) Included within Earnings (losses) from equity method investments in the consolidated statements of income.

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

(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,
			2022						2021
Asset management fees receivable			$	386					$	494
Accounts receivable			329						336
Reimbursable costs			204						974
Current acquisition fees receivable			—						19
Deferred acquisition fees receivable, including accrued interest			—						3
			$	919					$	1,826

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 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 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 2021 through February 28, 2022; payable in cash from March 1, 2022 to August 1, 2022 (the date of the completion of the CPA:18 Merger)

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

CESH

1.0 %

In cash

Based on gross assets at fair value

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.

Reimbursable Costs from Affiliates

CESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred.

Distributions of Available Cash

We were entitled to receive distributions of up to 10 % of the Available Cash (as defined in CPA:18 – Global’s partnership agreement) from the operating partnership of CPA:18 – Global, payable quarterly in arrears. After completion of the CPA:18 Merger on August 1, 2022 ( Note 3 ), we no longer receive distributions of Available Cash from CPA:18 – Global.

Back-End Fees and Interests in the Managed Programs

Under our advisory arrangements with CESH, we may also receive compensation in connection with providing a liquidity event for its investors. Such back-end fees or interests include or may include interests in disposition proceeds. There can be no assurance as to whether or when any back-end fees or interests will be realized. Pursuant to the terms of the definitive merger agreement, in connection with the closing of the CPA:18 Merger, we waived certain back-end fees that we would have been entitled to receive from CPA:18 – Global upon its liquidation pursuant to the terms of our advisory agreement and partnership agreement with CPA:18 – Global ( Note 3 ).

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Other Transactions with Former Affiliates

CWI 1 and CWI 2 Merger

On October 22, 2019, Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”), two non-traded REITs that we advised, 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”). 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. 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.

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 Earnings (losses) 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 9 );

• a fair value of $ 11.6 million for the 2,840,549 shares in CWI 2 common stock that we received ( Note 8 );

• 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 7 ); and

• the carrying value of our previously held equity investments in the operating partnerships of CWI 1 and CWI 2 ( Note 8 ), which totaled $ 0.5 million on the date of the merger.

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 9 ).

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 owned 12,208,243 shares of WLT common stock, which we accounted for as an equity method investment. We recorded our investment in shares of common stock of WLT on a one quarter lag. In January 2022, we reclassified our investment in shares of common stock of WLT from equity method investments to equity securities, since we no longer had significant influence over WLT, following the redemption of our investment in preferred shares of WLT, as described above ( Note 8 ). As a result, we accounted for this investment, which was included in Other assets, net in the consolidated financial statements, at fair value. WLT completed its previously announced sale to private real estate funds in October 2022 and we received $ 82.6 million in cash proceeds. We recognized non-cash unrealized gains of $ 49.2 million on our investment in common shares of WLT during the year ended December 31, 2022, which was recorded within Other gains and (losses) in the consolidated financial statements. Upon completion of this transaction, we have no remaining interest in WLT.

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Loans to Affiliates

From time to time, our board of directors (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. No amounts were outstanding on our line of credit to CPA:18 – Global as of December 31, 2021. In July 2022, CPA:18 – Global repaid the $ 16.0 million principal outstanding balance in full. The loan agreement with CPA:18 – Global was terminated upon completion of the CPA:18 Merger on August 1, 2022. No such line of credit with CESH existed during the reporting period.

Other

At December 31, 2022, we owned interests in ten jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate six such investments and account for the remaining four investments under the equity method of accounting ( Note 8 ). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option ( Note 8 ).

Land, Buildings and Improvements — Net Lease and Other

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,
			2022						2021
Land			$	2,400,002					$	2,151,327
Buildings and improvements			10,916,630						9,525,858
Real estate under construction			22,225						114,549
Less: Accumulated depreciation			( 1,672,091 )						( 1,448,020 )
			$	11,666,766					$	10,343,714

As discussed in Note 3 , we acquired 39 consolidated properties subject to existing operating leases in the CPA:18 Merger, which increased the carrying value of our Land, buildings and improvements — net lease and other by $ 881.6 million during the year ended December 31, 2022.

During 2022, 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 5.8 % to $ 1.0666 from $ 1.1326 . As a result of this fluctuation in foreign currency exchange rates, the carrying value of our Land, buildings and improvements — net lease and other decreased by $ 250.5 million from December 31, 2021 to December 31, 2022.

In connection with changes in lease classifications due to terminations or extensions of the underlying leases, we reclassified seven properties with an aggregate carrying value of $ 67.0 million from Net investments in direct financing leases and loans receivable to Land, buildings and improvements — net lease and other during 2022 ( Note 6 ).

Depreciation expense, including the effect of foreign currency translation, on our buildings and improvements subject to operating leases was $ 299.4 million, $ 286.4 million, and $ 258.9 million for the years ended December 31, 2022, 2021, and 2020, respectively.

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Acquisitions of Real Estate During 2022

During 2022, we entered into the following investments, which were deemed to be real estate asset acquisitions, and which excludes properties acquired in the CPA:18 Merger (dollars in thousands):

Property Location(s)						Number of Properties						Date of Acquisition						Property Type						Total Capitalized Costs (a)
Pleasant Prairie, Wisconsin						1						1/10/2022						Industrial						$	20,024
Various, Spain (a)						26						2/3/2022						Funeral Home						146,364
Various, Denmark (a) (b)						8						2/11/2022						Retail						33,976
Laval, Canada (a)						1						2/18/2022						Industrial						21,459
Chattanooga, Tennessee (c)						1						3/4/2022						Warehouse						43,198
Various, United States ( 4 properties), Canada ( 1 property), and Mexico ( 1 property)						6						4/27/2022; 5/9/2022						Industrial						80,595
Various, United States						6						5/16/2022						Industrial; Warehouse						110,381
Various, Denmark (a) (b)						10						6/1/2022; 6/30/2022						Retail						42,635
Medina, Ohio						1						6/17/2022						Industrial						28,913
Bree, Belgium (a)						1						6/30/2022						Warehouse						96,697
Various, Spain (a)						5						7/21/2022						Retail						19,894
Various, United States						18						7/26/2022						Industrial; Warehouse						262,061
Various, Denmark (a) (b)						8						8/1/2022; 9/28/2022						Retail						29,644
Westlake, Ohio						1						8/3/2022						Warehouse						29,517
Hebron and Strongsville, Ohio; and Scarborough, Canada						3						8/10/2022						Industrial; Warehouse						20,111
Clifton Park, New York and West Des Moines, Iowa						2						8/12/2022						Specialty						23,317
Orzinuovi, Italy (a)						1						8/26/2022						Industrial						14,033
West Chester, Pennsylvania						1						10/1/2022						Outdoor Advertising						1,863
Various, Denmark (a) (b)						4						11/30/2022						Retail						15,553
Various, United States						19						12/21/2022						Industrial						63,006
Romulus, Michigan						1						12/30/2022						Warehouse						36,569
Salisbury, North Carolina (d)						1						12/30/2022						Industrial						16,412
						125																		$	1,156,222

__________

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

(b) We also entered into a purchase agreement to acquire one additional retail facility leased to this tenant for $ 3.4 million (based on the exchange rate of the Danish krone at December 31, 2022), which is expected to be completed in 2023.

(c) We also committed to fund an additional $ 26.6 million for an expansion at the facility, which is expected to be completed in the third quarter of 2023.

(d) We also committed to fund an additional $ 13.8 million for an expansion at this facility, which is expected to be completed in the fourth quarter of 2023.

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

			Total Capitalized Costs
Land			$	145,078
Buildings and improvements			852,991
Intangible assets and liabilities:
In-place lease (weighted-average expected life of 20.6 years)			152,889
Below-market rent (weighted-average expected life of 10.9 years)			( 7,023 )
ROU assets:
Prepaid rent (a)			12,287
			$	1,156,222

__________

(a) Represents prepaid rent for a land lease. Therefore, there is no future obligation on the land lease asset and no corresponding operating lease liability. This asset is included in In-place lease intangible assets and other in the consolidated balance sheets.

Acquisitions of Real Estate During 2021 — We entered into 28 investments, which were deemed to be real estate asset acquisitions, at a total cost of $ 1.3 billion, including land of $ 191.0 million, buildings of $ 946.9 million, net lease intangibles of $ 188.9 million, land lease ROU assets of $ 6.0 million, above-market ground lease intangibles, net, of $ 4.2 million (included within ROU assets), prepaid rent liabilities of $ 15.4 million, and operating lease liabilities of $ 6.0 million.

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.

Real Estate Under Construction

During 2022, we capitalized real estate under construction totaling $ 141.2 million (including $ 78.3 million related to a student housing development project acquired in the CPA:18 Merger, as discussed below under Land, Buildings and Improvements — Operating Properties ). The number of construction projects in progress with balances included in real estate under construction was eight and six as of December 31, 2022 and 2021, respectively. Aggregate unfunded commitments totaled approximately $ 61.1 million and $ 55.3 million as of December 31, 2022 and 2021, respectively.

During 2022, 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)

Hurricane, Utah

Expansion

1

3/8/2022

Warehouse

$

20,517

Breda, Netherlands (a)

Expansion

1

3/18/2022

Warehouse

4,721

Bowling Green, Kentucky

Renovation

1

4/26/2022

Warehouse

72,971

Wageningen, Netherlands (a)

Build-to-Suit

1

7/7/2022

Research and Development

26,054

Radomsko, Poland (a)

Expansion

1

8/1/2022

Industrial

23,042

Flemington, New Jersey

Build-to-Suit

1

10/1/2022

Outdoor Advertising

832

6

$

148,137

__________

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

During 2021, we completed four construction projects, at a total cost of $ 88.2 million.

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

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In addition to the expansion commitments discussed under Acquisitions of Real Estate During 2022 above, during 2022, we committed to fund six build-to-suit or redevelopment projects, for an aggregate amount of $ 20.3 million. We currently expect to complete the projects in 2023.

Capitalized interest incurred during construction was $ 1.3 million, $ 2.5 million, and $ 2.9 million for the years ended December 31, 2022, 2021, and 2020 respectively, which reduces Interest expense in the consolidated statements of income.

Dispositions of Properties

During 2022, we sold 20 properties, which were classified as Land, buildings and improvements — net lease and other. As a result, the carrying value of our Land, buildings and improvements — net lease and other decreased by $ 118.1 million from December 31, 2021 to December 31, 2022 ( Note 16 ).

Other Lease-Related Income

2022 — For the year ended December 31, 2022, Other lease-related income on our consolidated statements of income included: (i) lease termination income totaling $ 12.4 million received from two tenants; (ii) other lease-related settlements totaling $ 17.6 million ; and (iii) income from a parking garage attached to one of our net-leased properties totaling $ 1.6 million.

2021 — For the year ended December 31, 2021, Other lease-related income 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, Other lease-related income 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.

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,
			2022						2021						2020
Lease income — fixed			$	1,160,942					$	1,066,250					$	981,430
Lease income — variable (a)			140,675						111,188						99,193
Total operating lease income			$	1,301,617					$	1,177,438					$	1,080,623

__________

(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.

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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, 2022 are as follows (in thousands):

Years Ending December 31,						Total
2023						$	1,285,481
2024						1,233,058
2025						1,179,250
2026						1,127,974
2027						1,064,061
Thereafter						9,481,009
Total						$	15,370,833

See Note 6 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,
			2022						2021						2020
Fixed lease cost			$	15,087					$	16,426					$	17,616
Variable lease cost			1,086						1,149						1,089
Total lease cost			$	16,173					$	17,575					$	18,705

During the years ended December 31, 2022, 2021, and 2020, we received sublease income totaling approximately $ 4.6 million, $ 5.1 million, and $ 5.5 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						2022						2021
Operating ROU assets — land leases			In-place lease intangible assets and other						$	123,834					$	106,095
Finance ROU assets — land leases			In-place lease intangible assets and other						12,598						—
Operating ROU assets — office leases			Other assets, net						56,674						59,902
Total operating ROU assets									$	193,106					$	165,997
Operating lease liabilities			Accounts payable, accrued expenses and other liabilities						$	146,302					$	146,437
Weighted-average remaining lease term — operating leases									25.8 years						26.1 years
Weighted-average discount rate — operating leases									6.8		%				6.8		%
Number of land lease arrangements — operating leases									72						66
Number of land lease arrangements — finance leases									1						—
Number of office space arrangements									4						4
Lease term range (excluding extension options not reasonably certain of being exercised)									< 1 – 99 years						< 1 – 100 years

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Cash paid for operating lease liabilities included in Net cash provided by operating activities totaled $ 15.8 million, $ 13.9 million, and $ 15.5 million for the years ended December 31, 2022, 2021, and 2020, respectively.

We assumed seven land lease arrangements in the CPA:18 Merger, for which we are the lessee. As a result, we capitalized (i) ROU assets totaling $ 24.5 million (comprised of below-market ground lease intangibles totaling $ 17.9 million and land lease ROU assets totaling $ 6.6 million), which are included within In-place lease intangible assets and other on our consolidated balance sheets, and (ii) operating lease liabilities totaling $ 6.6 million, which are included within Accounts payable, accrued expenses and other liabilities on our consolidated balance sheets.

During the year ended December 31, 2022, we entered into a land lease agreement for 99 years, which we account for as a finance lease. Upon entering into the lease, we prepaid the full ground rent of $ 12.3 million, which is included in Net cash used in investing activities on the consolidated statements of cash flows. During the year ended December 31, 2022, we recognized $ 0.1 million of rent expense for this finance lease, which is included in Depreciation and amortization on our consolidated statements of income.

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, 2022 is as follows (in thousands):

Years Ending December 31,						Total
2023						$	14,486
2024						13,856
2025						13,851
2026						13,721
2027						13,911
Thereafter						269,848
Total lease payments						339,673
Less: amount of lease payments representing interest						( 193,371 )
Present value of future lease payments/lease obligations						$	146,302

Land, Buildings and Improvements — Operating Properties

At December 31, 2022, Land, buildings and improvements — operating properties consisted of our investments in 75 consolidated self-storage properties, two consolidated student housing properties, and one consolidated hotel. We acquired 65 self-storage properties, one student housing property, and one student housing development project with an aggregate fair value of $ 1.0 billion in the CPA:18 Merger (including $ 78.3 million within real estate under construction) ( Note 3 ). In September 2022, we partially placed into service the student housing development project for total capitalized costs of $ 66.8 million. At December 31, 2021, Land, buildings and improvements — 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 — operating properties (in thousands):

			December 31,
			2022						2021
Land			$	122,317					$	10,452
Buildings and improvements			955,009						73,221
Real estate under construction			18,566						—
Less: Accumulated depreciation			( 28,295 )						( 16,750 )
			$	1,067,597					$	66,923

Depreciation expense on our buildings and improvements attributable to operating properties was $ 11.6 million, $ 2.7 million, and $ 2.8 million for the years ended December 31, 2022, 2021, and 2020, respectively.

For the year ended December 31, 2022, Land, buildings and improvements — operating properties revenues totaling $ 59.2 million were comprised of $ 54.4 million in lease revenues and $ 4.8 million in other income (such as food and beverage

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revenue) from 75 consolidated self-storage properties, two student housing properties, and one consolidated hotel. For the year ended December 31, 2021, Land, buildings and improvements — operating properties revenues totaling $ 13.5 million were comprised of $ 11.2 million in lease revenues and $ 2.3 million in other income from ten consolidated self-storage properties and one consolidated hotel. For the year ended December 31, 2020, Land, buildings and improvements — operating properties 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 one consolidated hotel. 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 earn student housing operating revenue primarily from leases of one year or less with individual students. We derive hotel revenue primarily from room rentals, as well as food, beverage, and other services.

Assets Held for Sale, Net

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

			December 31,
			2022						2021
Land, buildings and improvements — net lease and other			$	47,134					$	10,628
In-place lease intangible assets and other			10,854						—
Above-market rent intangible assets			3,210						—
Accumulated depreciation and amortization			( 3,254 )						( 2,359 )
Assets held for sale, net			$	57,944					$	8,269

At December 31, 2022, we had three properties classified as Assets held for sale, net, with an aggregate carrying value of $ 57.9 million. We sold one of these properties in January 2023 for gross proceeds of $ 11.2 million ( Note 18 ). We acquired two properties classified as Assets held for sale, net, with a fair value of $ 85.0 million in the CPA:18 Merger ( Note 3 ), one of which was sold in August 2022 ( Note 16 ). 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 the first quarter of 2022.

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). Operating leases are not included in finance receivables. See Note 2 and Note 5 for information on ROU operating lease assets recognized in our consolidated balance sheets.

Finance Receivables

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

			Maturity Date						December 31,
									2022						2021
Net investments in direct financing leases (a)			2023 – 2036						$	498,313					$	572,205
Sale-leaseback transactions accounted for as loans receivable (b)			2038 – 2052						234,198						217,229
Secured loans receivable (a)			2023 – 2024						39,250						24,143
									$	771,761					$	813,577

__________

(a) Amounts are net of allowance for credit losses, as disclosed below under Net Investments in Direct Financing Leases .

(b) These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases . Maturity dates reflect the current lease maturity dates.

(c) Amounts are net of allowance for credit losses of $ 2.1 million and $ 12.6 million as of December 31, 2022 and 2021, respectively.

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Net Investments in Direct Financing Leases

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

			December 31,
			2022						2021
Lease payments receivable			$	332,618					$	414,002
Unguaranteed residual value			470,839						545,896
			803,457						959,898
Less: unearned income			( 296,411 )						( 370,353 )
Less: allowance for credit losses (a)			( 8,733 )						( 17,340 )
			$	498,313					$	572,205

__________

(a) During the years ended December 31, 2022 and 2021, we recorded a net release of allowance for credit losses of $ 3.9 million and a net allowance for credit losses of $ 0.3 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions and improved credit quality for certain tenants, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the year ended December 31, 2022, we reduced the allowance for credit losses balance by $ 4.7 million, in connection with the reclassifications of properties from Net investments in direct financing leases and loans receivable to Real estate, as described below.

2022 — Income from direct financing leases, which is included in Income from direct financing leases and loans receivable in the consolidated financial statements, was $ 53.0 million for the year ended December 31, 2022.

As discussed in Note 3 , we acquired one consolidated property subject to a direct financing lease in the CPA:18 Merger, which increased the carrying value of our Net investments in direct financing leases and loans receivable by $ 10.5 million during the year ended December 31, 2022. During the year ended December 31, 2022, we reclassified seven properties with a carrying value of $ 67.0 million from Net investments in direct financing leases and loans receivable to Real estate in connection with changes in lease classifications due to terminations or extensions of the underlying leases ( Note 5 ). During the year ended December 31, 2022, the U.S. dollar strengthened against the euro, resulting in a $ 23.5 million decrease in the carrying value of Net investments in direct financing leases and loans receivable from December 31, 2021 to December 31, 2022.

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.

2020 — Income from direct financing leases, which was 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.

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, 2022 are as follows (in thousands):

Years Ending December 31,						Total
2023						50,273
2024						48,146
2025						43,897
2026						42,578
2027						41,370
Thereafter						106,354
Total						$	332,618

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

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Loans Receivable

During the year ended December 31, 2022, we entered into the following sale-leaseback, which was deemed to be a loan 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, Belgium (a)						5						6/22/2022						Retail						$	19,795
						5																		$	19,795

__________

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

During the year ended December 31, 2021, we entered into three sale-leasebacks, which were deemed to be loans receivable, at a total cost of $ 217.0 million.

As discussed in Note 3 , we acquired one secured loan receivable in the CPA:18 Merger for $ 28.0 million, which pays interest at 10 % per annum with a maturity date of July 2024.

In September 2022, one of our secured loans receivable was repaid to us for $ 34.0 million. In connection with this repayment, we recorded a release of allowance for credit losses of $ 10.5 million since the loan principal was fully repaid. In addition, in the first quarter of 2021, we entered into an agreement with the borrowers for certain of our secured loans receivable, who agreed to pay us at maturity a total of $ 3.7 million of unpaid interest due over the previous year. In connection with the repayment of the secured loan receivable in September 2022, we collected $ 2.3 million of this interest, which was included in Income from direct financing leases and loans receivable on the consolidated statements of income for the year ended December 31, 2022. The remaining $ 1.4 million of unpaid interest is related to a secured loan receivable that we still own, and has not been recognized 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 $ 21.2 million, $ 4.3 million, and $ 1.0 million for the years ended December 31, 2022, 2021, and 2020, respectively.

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, 2022 and 2021, 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 terminations and extensions noted under Net Investments in Direct Financing Leases above, there were no material modifications of finance receivables during the year ended December 31, 2022.

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.

A summary of our finance receivables by internal credit quality rating, excluding our 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						2022						2021						2022						2021
1 – 3						19						17						$	664,761					$	703,280
4						8						9						117,833						140,230
5						—						—						—						—
																		$	782,594					$	843,510

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We have recorded lease, internal-use software development, and trade name intangibles that are being amortized over periods ranging from one year 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.

Net lease intangibles recorded in connection with property acquisitions during the year ended December 31, 2022 are described in Note 5 . In connection with the CPA:18 Merger ( Note 3 ), we recorded net lease intangibles comprised as follows (life in years, dollars in thousands):

			Weighted-Average Life						Amount
Finite-Lived Intangible Assets
In-place lease			7.4						$	199,913
Above-market rent			11.9						61,090
									$	261,003
Finite-Lived Intangible Liabilities
Below-market rent			8.5						$	( 16,836 )

In connection with certain business combinations, including the CPA:18 Merger ( Note 3 ), 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, 2020			$	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 4 )			—						( 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
Acquisition of CPA:18 – Global ( Note 3 )			172,346						—						172,346
Foreign currency translation adjustments			( 7,129 )						—						( 7,129 )
Impairment charges ( Note 9 )			—						( 29,334 )						( 29,334 )
Balance at December 31, 2022			$	1,037,412					$	—					$	1,037,412

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. In connection with the completion of the CPA:18 Merger in August 2022 ( Note 3 ), we performed a test for impairment during the third quarter of 2022 for goodwill recorded in both segments and recognized an impairment charge of $ 29.3 million on goodwill within our Investment Management segment ( Note 9 ). We also performed our annual test for impairment in October 2022 for goodwill recorded in our Real Estate segment and found no impairment indicated.

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

			December 31,
			2022																		2021
			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			$	19,812					$	( 19,144 )					$	668					$	19,553					$	( 18,682 )					$	871
Trade name			—						—						—						3,975						( 3,581 )						394
			19,812						( 19,144 )						668						23,528						( 22,263 )						1,265
Lease Intangibles:
In-place lease			2,523,318						( 1,061,235 )						1,462,083						2,279,905						( 934,663 )						1,345,242
Above-market rent			833,751						( 507,436 )						326,315						843,410						( 489,861 )						353,549
			3,357,069						( 1,568,671 )						1,788,398						3,123,315						( 1,424,524 )						1,698,791
Goodwill
Goodwill			1,037,412						—						1,037,412						901,529						—						901,529
Total intangible assets			$	4,414,293					$	( 1,587,815 )					$	2,826,478					$	4,048,372					$	( 1,446,787 )					$	2,601,585
Finite-Lived Intangible Liabilities
Below-market rent			$	( 293,160 )					$	125,287					$	( 167,873 )					$	( 272,483 )					$	105,908					$	( 166,575 )
Indefinite-Lived Intangible Liabilities
Below-market purchase option			( 16,711 )						—						( 16,711 )						( 16,711 )						—						( 16,711 )
Total intangible liabilities			$	( 309,871 )					$	125,287					$	( 184,584 )					$	( 289,194 )					$	105,908					$	( 183,286 )

During 2022, the U.S. dollar strengthened against the euro, resulting in an decrease of $ 42.3 million in the carrying value of our net intangible assets from December 31, 2021 to December 31, 2022. Net amortization of intangibles, including the effect of foreign currency translation, was $ 229.2 million, $ 236.6 million, and $ 226.2 million for the years ended December 31, 2022, 2021, and 2020, 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, 2022, 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
2023						$	34,878					$	213,525					$	248,403
2024						30,783						158,641						189,424
2025						27,047						144,395						171,442
2026						21,196						128,578						149,774
2027						17,100						115,105						132,205
Thereafter						27,438						702,507						729,945
Total						$	158,442					$	1,462,751					$	1,621,193

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We own interests in the Managed Programs and certain unconsolidated real estate investments with third parties. 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						2022						2021						2022						2021
CPA:18 – Global (a)						100.000		%				5.578		%				$	—					$	60,836
CPA:18 – Global operating partnership						100.000		%				0.034		%				—						209
CESH (b)						2.430		%				2.430		%				2,225						3,689
																		$	2,225					$	64,734

__________

(a) On August 1, 2022, we acquired all of the remaining interests in CPA:18 – Global and the CPA:18 – Global operating partnership in the CPA:18 Merger ( 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, 2022, 2021, and 2020 of $ 1.6 million, $ 3.5 million, and $ 2.6 million, respectively. We received distributions from our investment in the CPA:18 – Global operating partnership during the years ended December 31, 2022, 2021, and 2020 of $ 8.7 million, $ 7.3 million, and $ 7.2 million, respectively ( Note 4 ).

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, 2022 is based on the estimated fair value of our investment as of September 30, 2022. We received distributions from this investment during the years ended December 31, 2022 and 2021 of $ 1.2 million and $ 1.3 million, respectively. We did no t receive distributions from this investment during the year ended December 31, 2020.

At December 31, 2021, the aggregate unamortized basis differences on our equity method investments in the Managed Programs were $ 23.3 million. During the third quarter of 2022, we recognized a gain on change in control of interests of approximately $ 22.5 million, which was the difference between the carrying value and the fair value of our previously held equity interest in shares of CPA:18 – Global’s common stock ( Note 3 ). Following the close of the CPA:18 Merger, there are no such unamortized basis differences on our equity method investments in the Managed Programs.

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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. We account for these investments under the equity method of accounting. In addition, we owned shares of WLT common stock, which we accounted for under the equity method of accounting as of December 31, 2021, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022, as described in Note 9 . 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/Fund/Description						Co-owner						December 31, 2022						2022						2021
Existing Equity Method Investments
Las Vegas Retail Complex (a)						Third Party						N/A						$	196,352					$	104,114
Johnson Self Storage						Third Party						90 %						65,707						67,573
Kesko Senukai (b)						Third Party						70 %						38,569						41,955
Harmon Retail Corner (c)						Third Party						15 %						24,649						24,435
WLT (d)						WLT						N/A						—						33,392
Equity Method Investments Consolidated After the CPA:18 Merger (e)
State Farm Mutual Automobile Insurance Co.						CPA:18 – Global						100 %						—						7,129
Apply Sørco AS (f)						CPA:18 – Global						N/A						—						5,909
Bank Pekao (b) (g)						CPA:18 – Global						100 %						—						4,460
Fortenova Grupa d.d. (b)						CPA:18 – Global						100 %						—						2,936
																		$	325,277					$	291,903

__________

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

(d) At December 31, 2021, we owned 12,208,243 shares of common stock of WLT, which we accounted for as an equity method investment in real estate, but was reclassified to equity securities at fair value within Other assets, net on our consolidated balance sheets in January 2022 ( Note 9 ). WLT completed its previously announced sale to private real estate funds in October 2022 ( Note 9 ).

(e) We acquired the remaining interests in these investments from CPA:18 – Global in the CPA:18 Merger, subsequent to which we consolidated these wholly owned investments ( Note 3 ).

(f) The carrying value of this investment is affected by fluctuations in the exchange rate of the Norwegian krone. We sold this investment in December 2022, which was consolidated and wholly owned at the time of disposition.

(g) We recognized our $ 4.6 million proportionate share of an impairment charge recorded on this investment during the year ended December 31, 2022, which was reflected within Earnings (losses) from equity method investments in our consolidated statements of income. The estimated fair value of the investment is based on the estimated selling price of the international office facility owned by the investment, and the fair value of the non-recourse mortgage encumbering the property also approximates the fair value of the property.

We received aggregate distributions of $ 27.8 million, $ 18.6 million, and $ 17.8 million from our other unconsolidated real estate investments for the years ended December 31, 2022, 2021, and 2020, respectively. At December 31, 2022 and 2021, the aggregate unamortized basis differences on our unconsolidated real estate investments were $ 19.1 million and $ 7.9 million, respectively. During the third quarter of 2022, we recorded a gain on change in control of interests of approximately $ 11.4 million, which was the difference between our carrying values and the fair values of our previously held equity method investments in real estate consolidated after the CPA:18 Merger ( Note 3 ).

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Las Vegas Retail Complex

On June 10, 2021, we entered into an agreement to fund a construction loan of approximately $ 261.9 million for a retail complex in Las Vegas, Nevada, at an interest rate of 6.0 % and term of 36 months. Through December 31, 2022, we funded $ 193.2 million, with the remaining amount expected to be funded in 2023. 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 . Equity income from this investment was $ 10.1 million and $ 3.0 million for the years ended December 31, 2022 and 2021, respectively, which was recognized within Earnings (losses) 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 10 ).

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.

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 8 ). We classified this investment as Level 3 because we primarily used valuation models that incorporate unobservable inputs to determine its fair value.

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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, 2022, 2021, and 2020, we recognized non-cash unrealized gains on our investment in shares of Lineage Logistics totaling $ 38.6 million, $ 76.3 million, and $ 48.3 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 years ended December 31, 2022 and 2021, we received cash dividends of $ 4.3 million and $ 6.4 million, respectively, from our investment in shares of Lineage Logistics, which was recorded within Non-operating income in the consolidated financial statements. See Note 15 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 $ 404.9 million and $ 366.3 million at December 31, 2022 and 2021, 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, 2022, we received liquidating distributions from our investment in shares of GCIF totaling $ 2.6 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). The fair value of our investment in shares of GCIF was $ 1.7 million and $ 4.3 million at December 31, 2022 and 2021, respectively.

Investment in Preferred Shares of WLT — 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). 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 (loss) income in the consolidated financial statements. In January 2022, in connection with this redemption, we reclassified this $ 18.7 million unrealized gain from Accumulated other comprehensive loss to Other gains and (losses) in the consolidated financial statements ( Note 13 ). During the years ended December 31, 2022 and 2021, we received cash dividends of $ 0.9 million and $ 4.9 million, respectively, 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 approximated its carrying value, which was $ 65.0 million as of December 31, 2021.

Investment in Common Shares of WLT — In January 2022, we reclassified our investment in 12,208,243 shares of common stock of WLT from equity method investments to equity securities, since we no longer had significant influence over WLT, following the redemption of our investment in preferred shares of WLT, as described above. As a result, we accounted for this investment, which was included in Other assets, net in the consolidated financial statements, at fair value. We classified this investment as Level 3 because it is not traded in an active market. The carrying value of this investment was $ 33.4 million as of December 31, 2021, which was included within Equity method investments in the consolidated financial statements. WLT completed its previously announced sale to private real estate funds in October 2022 and we received $ 82.6 million in cash proceeds. As a result, we recognized non-cash unrealized gains of $ 49.2 million on our investment in common shares of WLT during the year ended December 31, 2022, which was recorded within Other gains and (losses) in the consolidated financial statements. Upon completion of this transaction, we have no remaining interest in WLT.

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, 2022 or 2021. 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.

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

									December 31, 2022												December 31, 2021
			Level						Carrying Value						Fair Value						Carrying Value						Fair Value
Senior Unsecured Notes, net (a) (b) (c)			2 and 3						$	5,916,400					$	5,238,588					$	5,701,913					$	5,984,228
Non-recourse mortgages, net (a) (b) (d)			3						1,132,417						1,109,449						368,524						369,841

__________

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(a) The carrying value of Senior Unsecured Notes, net ( Note 11 ) includes unamortized deferred financing costs of $ 25.9 million and $ 28.7 million at December 31, 2022 and 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized deferred financing costs of less than $ 0.1 million at both December 31, 2022 and 2021.

(b) The carrying value of Senior Unsecured Notes, net includes unamortized discount of $ 24.1 million and $ 29.2 million at December 31, 2022 and 2021, respectively. The carrying value of Non-recourse mortgages, net includes unamortized discount of $ 10.3 million and $ 0.8 million at December 31, 2022 and 2021, respectively.

(c) For those Senior Unsecured Notes for which there are no observable market prices (specifically, our private placement Senior Unsecured Notes ( Note 11 )), we used a discounted cash flow model that estimates the present value of future loan payments by discounting such payments at current estimated market interest rates. We consider these notes to be within the Level 3 category. For all other Senior Unsecured Notes, we determined the estimated fair value using observed market prices in an open market, which may experience limited trading volume. We consider these notes to be within the Level 2 category.

(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 11 ), but excluding finance receivables ( Note 6 ), had fair values that approximated their carrying values at both December 31, 2022 and 2021.

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,
			2022												2021												2020
			Fair Value Measurements						Impairment Charges						Fair Value Measurements						Impairment Charges						Fair Value Measurements						Impairment Charges
Impairment Charges
Real estate and intangibles			$	32,497					$	39,119					$	29,494					$	24,246					$	31,350					$	35,830
Investment Management goodwill			—						29,334						—						—						—						—
Equity method investments			—						—						8,175						6,830						55,245						55,387
									$	68,453											$	31,076											$	91,217

Impairment charges, and their related triggering events and fair value measurements, recognized during 2022, 2021, and 2020 were as follows:

Real Estate and Intangibles

The impairment charges described below are reflected within Impairment charges — real estate in our consolidated statements of income.

2022 — During the year ended December 31, 2022, we recognized impairment charges totaling $ 39.1 million on 11 properties in order to reduce their carrying values to their estimated fair values, as follows:

• $ 12.4 million on three properties based on their estimated selling prices; we sold one of these properties in August 2022;

• $ 10.9 million on a property due to changes in expected cash flows related to the existing tenant’s lease expiration in 2023. The fair value measurement was determined by estimating discounted cash flows using two significant unobservable inputs, which were the cash flow discount rate ( 14.0 %) and terminal capitalization rate ( 11.0 %);

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• $ 9.3 million on six Pendragon PLC properties in order to reduce the carrying values of the properties to their estimated fair values. The fair value measurements for the properties were determined using a direct capitalization rate analysis; the capitalization rate for the various scenarios ranged from 4.75 % to 10.00 %. In March 2022, we entered into a transaction to restructure certain leases with Pendragon PLC (a tenant at certain automotive dealerships in the United Kingdom). Under this restructuring, we extended the leases on 30 properties by 11 years (no change to rent) and entered into an agreement to dispose of 12 properties, with the tenant continuing to pay rent until the earlier of sale date or certain specified dates over the following 12 months; and

• $ 6.5 million on a property due to a potential property vacancy.

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 former 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); we sold this property in September 2022; 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; we sold this property 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; we sold this property in May 2022; and

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

Investment Management Goodwill

The impairment charges described below are reflected within Impairment charges — Investment Management goodwill in our consolidated statements of income.

2022 — During the year ended December 31, 2022, we recognized an impairment charge of $ 29.3 million on goodwill within our Investment Management segment in order to reduce its carrying value to its estimated fair value of $ 0 , since future Investment Management cash flows are expected to be minimal following the CPA:18 Merger ( Note 3 ).

Equity Method Investments

The other-than-temporary impairment charges described below are reflected within Earnings (losses) 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 %).

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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.

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 11 ) 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 limited partnership units we hold in CESH, 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 (loss) income 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 (loss) income as part of the cumulative foreign currency translation adjustment. Amounts are reclassified out of Other comprehensive (loss) income 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, 2022 and 2021, 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, 2022						December 31, 2021						December 31, 2022						December 31, 2021
Foreign currency collars						Other assets, net						$	32,631					$	19,484					$	—					$	—
Interest rate swaps (a)						Other assets, net						2,679						—						—						—
Interest rate caps						Other assets, net						14						1						—						—
Foreign currency collars						Accounts payable, accrued expenses and other liabilities						—						—						( 1,445 )						( 1,311 )
Interest rate swaps						Accounts payable, accrued expenses and other liabilities						—						—						—						( 908 )
												35,324						19,485						( 1,445 )						( 2,219 )
Derivatives Not Designated as Hedging Instruments
Stock warrants						Other assets, net						3,950						4,600						—						—
Foreign currency collars						Accounts payable, accrued expenses and other liabilities						—						—						( 248 )						—
												3,950						4,600						( 248 )						—
Total derivatives												$	39,274					$	24,085					$	( 1,693 )					$	( 2,219 )

__________

(a) In connection with the CPA:18 Merger on August 1, 2022, we acquired five interest rate swaps, which had an aggregate fair value of $ 0.4 million on the date of acquisition.

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						2022						2021						2020
Foreign currency collars						$	13,013					$	29,805					$	( 24,818 )
Interest rate swaps						3,068						4,198						( 1,553 )
Interest rate caps						16						6						6
Foreign currency forward contracts						—						—						( 5,272 )
Derivatives in Net Investment Hedging Relationships (b)
Foreign currency collars						—						—						9
Total						$	16,097					$	34,009					$	( 31,628 )

												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,
												2022						2021						2020
Foreign currency collars						Non-operating income						$	17,483					$	854					$	4,956
Interest rate swaps and caps (c)						Interest expense						( 167 )						( 932 )						( 1,818 )
Foreign currency forward contracts						Non-operating income						—						—						5,716
Total												$	17,316					$	( 78 )					$	8,854

__________

(a) Excludes net gains of $ 3.6 million, net gains of $ 1.3 million, and net losses of $ 0.3 million recognized on unconsolidated jointly owned investments for the years ended December 31, 2022, 2021, and 2020, respectively.

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

(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 11 ).

Amounts reported in Other comprehensive (loss) income 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 (loss) income 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, 2022, we estimate that an additional $ 1.6 million and $ 14.6 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 in Cash Flow Hedging Relationships						Location of Gain (Loss) Recognized in Income						Years Ended December 31,
												2022						2021						2020
Foreign currency collars						Non-operating income						$	6,574					$	1,503					$	( 2,477 )
Interest rate swaps						Interest expense						171						1,592						2,132
Foreign currency forward contracts						Non-operating income						—						—						( 43 )
Derivatives Not in Cash Flow Hedging Relationships
Stock warrants						Other gains and (losses)						( 650 )						( 1,200 )						800
Foreign currency collars						Other gains and (losses)						( 248 )						—						—
Interest rate swaps						Other gains and (losses)						—						—						106
Total												$	5,847					$	1,895					$	518

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, 2022 are summarized as follows (currency in thousands):

Interest Rate Derivatives						Number of Instruments						Notional Amount									Fair Value at December 31, 2022 (a)
Designated as Cash Flow Hedging Instruments
Interest rate swaps						5						34,918			USD						$	1,399
Interest rate swaps						2						45,970			EUR						1,280
Interest rate cap						1						10,452			EUR						14
																					$	2,693

__________

(a) Fair value amounts are based on the exchange rate of the euro at December 31, 2022, 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 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, 2022 (currency in thousands):

Foreign Currency Derivatives						Number of Instruments						Notional Amount									Fair Value at December 31, 2022
Designated as Cash Flow Hedging Instruments
Foreign currency collars						75						295,400			EUR						$	25,578
Foreign currency collars						69						44,520			GBP						5,608
Not Designated as Cash Flow Hedging Instruments
Foreign currency collars						4						29,500			EUR						( 248 )
																					$	30,938

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, 2022. At December 31, 2022, our total credit exposure and the maximum exposure to any single counterparty was $ 33.8 million and $ 6.0 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, 2022, 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 $ 1.7 million and $ 2.2 million at December 31, 2022 and 2021, respectively, which included accrued interest and any nonperformance risk adjustments. If we had breached any of these provisions at December 31, 2022 or 2021, we could have been required to settle our obligations under these agreements at their aggregate termination value of $ 1.7 million and $ 2.3 million, respectively.

Net Investment Hedges

Borrowings under our Senior Unsecured Notes, Unsecured Revolving Credit Facility, and Unsecured Term Loans (all as defined in Note 11 ) 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 (loss) income 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 (loss) income as part of the cumulative foreign currency translation adjustment. Such gains (losses) related to non-derivative net investment hedges were $ 214.3 million, $ 255.9 million, and $( 280.4 ) million for the years ended December 31, 2022, 2021, and 2020, 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 London Inter-bank Offered Rate (“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, 2022 and 2021, this reference rate transition impacted only our Senior Unsecured Credit Facility.

In April 2022, we entered into a Second Amendment to the Credit Agreement to increase the Term Loan to £ 270.0 million and the Delayed Draw Term Loan to € 215.0 million, thereby increasing the total capacity of our Senior Unsecured Credit Facility to approximately $ 2.4 billion. There were no other changes to the terms of our Credit Agreement. We used the approximately $ 300 million of proceeds from this increase in the capacity of our Unsecured Term Loans to partially repay amounts outstanding under our Unsecured Revolving 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. As of December 31, 2022, the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility was able to 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 the Credit Agreement. In January 2023, we entered into a Third Amendment to the Credit Agreement to (i) transition from LIBOR to the Secured Overnight Financing Rate (“SOFR”) and (ii) increase the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility to an amount not to exceed the U.S. dollar equivalent of $ 3.05 billion, subject to the conditions to increase set forth in the Credit Agreement. See Note 18 , Subsequent Events for more information about this amendment.

At December 31, 2022, our Unsecured Revolving Credit Facility had available capacity of approximately $ 1.5 billion (net of amounts reserved for standby letters of credit totaling $ 0.6 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, 2022 (a)						Maturity Date at December 31, 2022						Principal Outstanding Balance at December 31,
Senior Unsecured Credit Facility																		2022						2021
Unsecured Term Loans:
Term Loan — borrowing in British pounds sterling (b) (c) (d)						SONIA + 0.85 %						2/20/2025						$	324,695					$	202,183
Delayed Draw Term Loan — borrowing in euros (e)						EURIBOR + 0.85 %						2/20/2025						229,319						109,296
																		554,014						311,479
Unsecured Revolving Credit Facility:
Borrowing in euros (e)						EURIBOR + 0.775 %						2/20/2025						258,117						205,001
Borrowing in Japanese yen (f)						TIBOR + 0.775 %						2/20/2025						18,275						20,935
Borrowing in British pounds sterling						N/A						2/20/2025						—						184,660
																		276,392						410,596
																		$	830,406					$	722,075

__________

(a) The applicable interest rate at December 31, 2022 was based on the credit rating for our Senior Unsecured Notes of BBB/Baa1.

(b) Balance excludes unamortized discount of $ 1.5 million and $ 0.9 million at December 31, 2022 and 2021, respectively.

(c) SONIA means Sterling Overnight Index Average.

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(d) Interest rate includes both a spread adjustment to the base rate and a credit spread.

(e) EURIBOR means Euro Interbank Offered Rate.

(f) TIBOR means Tokyo Interbank Offered Rate.

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 $ 6.0 billion at December 31, 2022 (the “Senior Unsecured Notes”).

On September 28, 2022, we completed a private placement of (i) € 150 million of 3.41 % Senior Notes due 2029, which have a 7 -year term and are scheduled to mature on September 28, 2029, and (ii) € 200 million of 3.70 % Senior Notes due 2032, which have a 10 -year term and are scheduled to mature on September 28, 2032.

We redeemed 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 for the year ended December 31, 2021.

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, 2022 (currency in thousands):

												Principal Amount						Coupon Rate						Maturity Date						Principal Outstanding Balance at December 31,
Senior Unsecured Notes, net (a)						Issue Date																								2022						2021
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						533,300						566,300
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						533,300						566,300
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						533,300						566,300
1.350 % Senior Notes due 2028						9/19/2019						€	500,000					1.350		%				4/15/2028						533,300						566,300
3.850 % Senior Notes due 2029						6/14/2019						$	325,000					3.850		%				7/15/2029						325,000						325,000
3.41 % Senior Notes due 2029						9/28/2022						€	150,000					3.41		%				9/28/2029						159,990						—
0.950 % Senior Notes due 2030						3/8/2021						€	525,000					0.950		%				6/1/2030						559,965						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						350,000
3.70 % Senior Notes due 2032						9/28/2022						€	200,000					3.70		%				9/28/2032						213,320						—
2.250 % Senior Notes due 2033						2/25/2021						$	425,000					2.250		%				4/1/2033						425,000						425,000
																														$	5,966,475					$	5,759,815

__________

(a) Aggregate balance excludes unamortized deferred financing costs totaling $ 25.9 million and $ 28.7 million, and unamortized discount totaling $ 24.1 million and $ 29.2 million at December 31, 2022 and 2021, respectively.

In connection with the private placement of the € 150 million of 3.41 % Senior Notes due 2029 and the € 200 million of 3.70 % Senior Notes due 2032 in September 2022, we incurred financing costs totaling $ 2.6 million during the year ended December 31, 2022, 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, 2022.

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, 2022, the weighted-average interest rate for our total non-recourse mortgage notes payable was 4.3 % (fixed-rate and variable-rate non-recourse mortgage notes payable were 4.4 % and 4.1 %, respectively), with maturity dates ranging from January 2023 to April 2039.

CPA:18 Merger

In connection with the CPA:18 Merger on August 1, 2022 ( Note 3 ), we assumed property-level debt comprised of non-recourse mortgage loans with fair values totaling $ 900.2 million and recorded an aggregate fair market value net discount of $ 13.1 million. The fair market value net discount will be amortized to interest expense over the remaining lives of the related loans. These non-recourse mortgage loans had a weighted-average annual interest rate of 5.1 % on the merger date.

Repayments During 2022

During the year ended December 31, 2022, we (i) repaid non-recourse mortgage loans at or close to maturity with an aggregate principal balance of approximately $ 104.7 million, and (ii) prepaid non-recourse mortgage loans totaling $ 10.4 million. We recognized an aggregate net loss on extinguishment of debt of $ 1.3 million on these repayments, 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 4.4 %.

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 %.

Interest Paid

For the years ended December 31, 2022, 2021, and 2020, interest paid was $ 191.0 million, $ 190.8 million, and $ 190.6 million, respectively.

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Foreign Currency Exchange Rate Impact

During the year ended December 31, 2022, the U.S. dollar strengthened against the euro, resulting in an aggregate decrease of $ 224.4 million in the aggregate carrying values of our Non-recourse mortgages, net, Senior Unsecured Credit Facility, and Senior Unsecured Notes, net from December 31, 2021 to December 31, 2022.

Scheduled Debt Principal Payments

Scheduled debt principal payments as of December 31, 2022 are as follows (in thousands):

Years Ending December 31,						Total
2023						$	456,708
2024						1,231,468
2025						1,664,276
2026						983,425
2027						533,760
Thereafter through 2039						3,070,039
Total principal payments						7,939,676
Unamortized discount, net						( 35,936 )
Unamortized deferred financing costs						( 25,992 )
Total						$	7,877,748

Certain amounts are based on the applicable foreign currency exchange rate at December 31, 2022.

At December 31, 2022, 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,
			2022						2021						2020
Ordinary income			$	4.0329					$	3.3300					$	3.3112
Return of capital			0.1718						0.5407						—
Capital gains			0.0273						0.3253						0.8528
Total dividends paid			$	4.2320					$	4.1960					$	4.1640

During the fourth quarter of 2022, our Board declared a quarterly dividend of $ 1.065 per share, which was paid on January 13, 2023 to stockholders of record as of December 30, 2022.

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Earnings Per Share

The following table summarizes basic and diluted earnings (dollars in thousands) :

			Years Ended December 31,
			2022						2021						2020
Net income – basic and diluted			$	599,139					$	409,988					$	455,359
Weighted-average shares outstanding – basic			199,633,802						182,486,476						174,504,406
Effect of dilutive securities			793,322						640,622						335,022
Weighted-average shares outstanding – diluted			200,427,124						183,127,098						174,839,428

For the years ended December 31, 2022, 2021, and 2020, potentially dilutive securities excluded from the computation of diluted earnings per share were insignificant.

ATM Program

On May 2, 2022, we established a continuous “at-the-market” offering program (“ATM Program”) with a syndicate of banks, pursuant to which shares of our common stock having an aggregate gross sales price of up to $ 1.0 billion may be sold (i) directly through or to the banks acting as sales agents or as principal for their own accounts or (ii) through or to participating banks or their affiliates acting as forward sellers on behalf of any forward purchasers pursuant to a forward sale agreement (our “ATM Forwards”). Effective as of that date, we terminated a prior ATM Program that was established on August 9, 2019, under which we were able to offer and sell shares of our common stock from time to time, up to an aggregate gross sales price of $ 750.0 million, with a syndicate of banks.

The following table sets forth certain information regarding the issuance of shares of our common stock under our prior ATM Program during the periods presented (net proceeds in thousands):

			Years Ended December 31,
			2022						2021						2020
Shares of common stock issued			2,740,295						4,690,073						2,500
Weighted-average price per share			$	80.79					$	73.42					$	72.05
Net proceeds			$	218,081					$	339,968					$	159

Forward Equity

We expect to settle the ATM Forwards in full on or prior to the maturity date of each ATM Forward via physical delivery of the outstanding shares of common stock in exchange for cash proceeds. However, subject to certain exceptions, we may also elect to cash settle or net share settle all or any portion of our obligations under any ATM Forwards. The forward sale price that we will receive upon physical settlement of the ATM Forwards will be (i) subject to adjustment on a daily basis based on a floating interest rate factor equal to a specified daily rate less a spread (i.e., if the specified daily rate is less than the spread on any day, the interest rate factor will result in a daily reduction of the applicable forward sale price) and (ii) decreased based on amounts related to expected dividends on shares of our common stock during the term of the ATM Forwards.

We determined that our ATM Forwards meet the criteria for equity classification and are therefore exempt from derivative accounting. We recorded the ATM Forwards at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification.

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”). Our ATM Forwards are also presented below (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, 2022
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 (d)			8/9/2021						5,175,000						78.00						403,650						—
ATM Forwards (e)			5/2/2022						6,524,437						84.09						548,626						6,524,437
																											6,524,437

__________

(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.

(d) All remaining outstanding shares were settled during the year ended December 31, 2022.

(e) We sold shares under our ATM Forwards during the year ended December 31, 2022. We did not settle any of the shares sold and therefore did not receive any proceeds from such sales. See Note 1 8 , Subsequent Events for sales through our ATM Forwards subsequent to December 31, 2022 and through the date of this Report.

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,
			2022						2021						2020
Shares of common stock delivered			3,925,000						9,798,209						2,951,791
Net proceeds			$	284,259					$	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, 2020			$	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 )
Other comprehensive loss before reclassifications			37,048						( 63,149 )						—						( 26,101 )
Amounts reclassified from accumulated other comprehensive loss to:
Non-operating income			( 17,483 )						—						—						( 17,483 )
Interest expense			167						—						—						167
Other gains and (losses) ( Note 9 )			—						—						( 18,688 )						( 18,688 )
Total			( 17,316 )						—						( 18,688 )						( 36,004 )
Net current period other comprehensive loss			19,732						( 63,149 )						( 18,688 )						( 62,105 )
Net current period other comprehensive income attributable to noncontrolling interests			—						( 5 )						—						( 5 )
Balance at December 31, 2022			$	36,079					$	( 319,859 )					$	—					$	( 283,780 )

See Note 10 for additional information on our derivatives activity recognized within Other comprehensive (loss) income for the periods presented.

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Stock-Based Compensation

At December 31, 2022, we maintained several stock-based compensation plans as described below. The total compensation expense (net of forfeitures) for awards issued under these plans was $ 32.8 million, $ 24.9 million, and $ 15.9 million for the years ended December 31, 2022, 2021, and 2020, respectively, which was included in Stock-based compensation expense in the consolidated financial statements. The tax (expense) benefit recognized by us related to these awards totaled $( 4.3 ) million, $ 0.8 million, and $ 4.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. The tax benefits for the years ended December 31, 2022, 2021, and 2020 were reflected as a deferred tax benefit within (Provision for) benefit from income taxes in the consolidated financial statements.

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, 2022, 2,186,067 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, 2022, 2021, and 2020 was less than $ 0.1 million. Cash received from purchases under the ESPP during the years ended December 31, 2022, 2021, and 2020 was $ 0.2 million, $ 0.3 million, and $ 0.4 million, respectively.

Restricted and Conditional Awards

Nonvested RSAs, RSUs, and PSUs at December 31, 2022 and changes during the years ended December 31, 2022 , 2021, and 2020 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, 2020			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			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			306,994						71.21						398,255						86.86
Granted (c)			235,348						80.28						144,311						104.97
Vested (a)			( 154,028 )						72.80						( 165,615 )						92.16
Forfeited			( 12,016 )						75.93						( 4,262 )						98.26
Adjustment (b)			—						—						159,092						80.90
Nonvested at December 31, 2022 (d)			376,298						$	74.78					531,781						$	89.14

__________

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(a) The grant date fair value of shares vested during the years ended December 31, 2022, 2021, and 2020 was $ 26.5 million, $ 21.4 million, and $ 24.0 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, 2022 and 2021, we had an obligation to issue 1,181,947 and 1,104,020 shares, respectively, of our common stock underlying such deferred awards, which is recorded within Total stockholders’ equity as a Deferred compensation obligation of $ 57.0 million and $ 49.8 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.

(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, 2022, we used a risk-free interest rate of 1.2 %, an expected volatility rate of 36.7 %, and assumed a dividend yield of zero .

(d) At December 31, 2022, total unrecognized compensation expense related to these awards was approximately $ 34.4 million, with an aggregate weighted-average remaining term of 1.8 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 2022, 2021, and 2020, 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 $ 30,500 for 2022, $ 29,000 for 2021, and $ 28,500 for 2020. For the years ended December 31, 2022, 2021, and 2020, amounts expensed for contributions to the trust were $ 2.3 million, $ 2.2 million, and $ 1.9 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.

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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,
			2022						2021						2020
Federal
Current			$	5,329					$	( 405 )					$	( 1,118 )
Deferred (a)			13						17						( 33,040 )
			5,342						( 388 )						( 34,158 )
State and Local
Current			3,388						3,008						3,284
Deferred (a)			—						( 30 )						( 7,756 )
			3,388						2,978						( 4,472 )
Foreign
Current			27,077						30,599						26,137
Deferred			( 8,083 )						( 4,703 )						( 8,266 )
			18,994						25,896						17,871
Total Provision for (Benefit from) Income Taxes			$	27,724					$	28,486					$	( 20,759 )

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

			Years Ended December 31,
			2022						2021						2020
Pre-tax income (loss) attributable to taxable subsidiaries (a) (b)			$	55,604					$	37,861					$	( 56,789 )
Federal provision at statutory tax rate (21%)			$	11,677					$	7,951					$	( 11,926 )
Change in valuation allowance			8,082						13,178						13,946
Non-deductible expense			6,972						3,148						6,303
State and local taxes, net of federal benefit			2,920						2,713						2,336
Windfall tax benefit			( 1,896 )						( 1,375 )						( 2,132 )
Rate differential			( 387 )						( 232 )						( 632 )
Revocation of TRS Status (c)			—						—						( 37,249 )
Tax expense related to allocation of goodwill based on portion of Investment Management business sold ( Note 4 )			—						—						7,203
Non-taxable income			—						—						( 2 )
Other			356						3,103						1,394
Total provision for (benefit from) income taxes			$	27,724					$	28,486					$	( 20,759 )

__________

(a) 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 9 ), (ii) the allocation of $ 34.3 million of goodwill within our Investment Management segment as a result of the WLT management internalization ( Note 4 ), and (iii) an impairment charge of $ 12.6 million recognized on an international property ( Note 9 ).

(b) Pre-tax income attributable to taxable subsidiaries for 2022 includes taxable income, recognized in connection with the CPA:18 Merger, associated with the accelerated vesting of shares previously issued by CPA:18 – Global to us for asset management services performed.

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(c) 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 9 ), which converted to a REIT during the year and is therefore no longer subject to federal and state income 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 9 ).

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.

Deferred Income Taxes

Deferred income taxes at December 31, 2022 and 2021 consist of the following (in thousands):

			December 31,
			2022						2021
Deferred Tax Assets
Net operating loss and other tax credit carryforwards			$	63,454					$	55,147
Basis differences — foreign investments			62,099						52,705
Unearned and deferred compensation			643						15,895
Lease liabilities (a)			—						14,752
Other			1,242						374
Total deferred tax assets			127,438						138,873
Valuation allowance			( 106,185 )						( 108,812 )
Net deferred tax assets			21,253						30,061
Deferred Tax Liabilities
Basis differences — foreign investments			( 179,761 )						( 145,524 )
ROU assets (a)			—						( 12,637 )
Basis differences — equity investees			—						( 1,195 )
Total deferred tax liabilities			( 179,761 )						( 159,356 )
Net Deferred Tax Liability			$	( 158,508 )					$	( 129,295 )

__________

(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

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• 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:18 Merger, and thus could not be applied to reduce future income tax liabilities.

As of December 31, 2022, U.S. federal and state net operating loss carryforwards were $ 17.5 million and $ 11.4 million, respectively, which will begin to expire in 2033. As of December 31, 2022, net operating loss carryforwards in foreign jurisdictions were $ 90.6 million, which will begin to expire in 2023.

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 $ 20.5 million and $ 16.3 million at December 31, 2022 and 2021, respectively, which are included in Other assets, net in the consolidated balance sheets, and other deferred tax liability balances of $ 179.0 million and $ 145.6 million at December 31, 2022 and 2021, respectively, which are included in Deferred income taxes in the consolidated balance sheets.

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,
			2022						2021
Beginning balance			$	5,994					$	6,312
Decrease due to lapse in statute of limitations			( 2,847 )						( 508 )
Increase due to CPA:18 Merger			2,694						—
Addition based on tax positions related to the prior year			543						315
Foreign currency translation adjustments			( 407 )						( 451 )
Addition based on tax positions related to the current year			241						326
Ending balance			$	6,218					$	5,994

At December 31, 2022 and 2021, 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, 2022 and 2021, we had approximately $ 1.6 million and $ 2.1 million, respectively, of accrued interest related to uncertain tax positions.

Income Taxes Paid

Income taxes paid were $ 42.6 million, $ 44.3 million, and $ 43.5 million for the years ended December 31, 2022, 2021, and 2020, 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.

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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.

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 2017 through 2021 or any ongoing audits remain open to adjustment in the major tax jurisdictions.

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 5 and Note 6 .

2022 — During the year ended December 31, 2022, we sold 23 properties for total proceeds, net of selling costs, of $ 234.7 million, and recognized a net gain on these sales totaling $ 43.5 million (inclusive of income taxes totaling $ 5.3 million recognized upon sale). This disposition activity included two properties acquired in the CPA:18 Merger, one of which was classified as assets held for sale and sold in August 2022 ( Note 3 , 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).

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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,
			2022						2021						2020
Revenues
Lease revenues			$	1,301,617					$	1,177,438					$	1,080,623
Income from direct financing leases and loans receivable			74,266						67,555						74,893
Operating property revenues (a)			59,230						13,478						11,399
Other lease-related income			32,988						53,655						11,082
			1,468,101						1,312,126						1,177,997
Operating Expenses
Depreciation and amortization (b)			503,403						475,989						441,948
General and administrative (b)			88,952						81,888						70,127
Reimbursable tenant costs			73,622						62,417						56,409
Property expenses, excluding reimbursable tenant costs			50,753						47,898						44,067
Impairment charges			39,119						24,246						35,830
Stock-based compensation expense (b)			32,841						24,881						15,247
Operating property expenses			27,054						9,848						9,901
Merger and other expenses			19,384						( 4,597 )						( 937 )
			835,128						722,570						672,592
Other Income and Expenses
Interest expense			( 219,160 )						( 196,831 )						( 210,087 )
Other gains and (losses)			97,149						( 13,676 )						37,104
Gain on sale of real estate, net			43,476						40,425						109,370
Non-operating income			30,289						13,778						8,970
Earnings (losses) from equity method investments in real estate			16,221						( 19,649 )						( 9,017 )
Gain on change in control of interests			11,405						—						—
			( 20,620 )						( 175,953 )						( 63,660 )
Income before income taxes			612,353						413,603						441,745
(Provision for) benefit from income taxes			( 21,407 )						( 28,703 )						18,498
Net Income from Real Estate			590,946						384,900						460,243
Net loss (income) attributable to noncontrolling interests			657						( 134 )						( 731 )
Net Income from Real Estate Attributable to W. P. Carey			$	591,603					$	384,766					$	459,512

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Investment Management

			Years Ended December 31,
			2022						2021						2020
Revenues
Asset management revenue			$	8,467					$	15,363					$	22,467
Reimbursable costs from affiliates			2,518						4,035						8,855
			10,985						19,398						31,322
Operating Expenses
Impairment charges — Investment Management goodwill			29,334						—						—
Reimbursable costs from affiliates			2,518						4,035						8,855
Merger and other expenses			3						51						1,184
General and administrative (b)			—						—						5,823
Subadvisor fees			—						—						1,469
Depreciation and amortization (b)			—						—						987
Stock-based compensation expense (b)			—						—						691
			31,855						4,086						19,009
Other Income and Expenses
Gain on change in control of interests			22,526						—						—
Earnings (losses) from equity method investments in the Managed Programs			13,288						8,820						( 9,540 )
Other gains and (losses)			( 1,111 )						791						61
Non-operating income			20						82						617
			34,723						9,693						( 8,862 )
Income before income taxes			13,853						25,005						3,451
(Provision for) benefit from income taxes			( 6,317 )						217						2,261
Net Income from Investment Management			7,536						25,222						5,712
Net income attributable to noncontrolling interests			—						—						( 9,865 )
Net Income (Loss) from Investment Management Attributable to W. P. Carey			$	7,536					$	25,222					$	( 4,153 )

Total Company

			Years Ended December 31,
			2022						2021						2020
Revenues			$	1,479,086					$	1,331,524					$	1,209,319
Operating expenses			866,983						726,656						691,601
Other income and expenses			14,103						( 166,260 )						( 72,522 )
(Provision for) benefit from income taxes			( 27,724 )						( 28,486 )						20,759
Net loss (income) attributable to noncontrolling interests			657						( 134 )						( 10,596 )
Net income attributable to W. P. Carey			$	599,139					$	409,988					$	455,359

			Total Assets at December 31,
			2022						2021
Real Estate			$	18,077,155					$	15,344,703
Investment Management (c)			24,880						135,927
Total Company			$	18,102,035					$	15,480,630

__________

(a) Operating property revenues from our hotels include (i) $ 12.0 million, $ 7.2 million, and $ 4.0 million for the years ended December 31, 2022, 2021, and 2020, respectively, generated from a hotel in Bloomington, Minnesota (revenues reflect higher occupancy as the hotel’s business recovered from the COVID-19 pandemic), and (ii) $ 1.9 million for the year ended December 31, 2020 generated from a hotel in Miami, Florida, which was sold in January 2020 ( Note 16 ).

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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 4 ), as well as the termination of the advisory agreements with CPA:18 – Global in connection with the CPA:18 Merger ( 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 CESH through the end of its life cycle ( Note 2 ). These changes between the segments had no impact on our consolidated financial statements.

(c) Following the CPA:18 Merger on August 1, 2022, we no longer own an equity investment in CPA:18 – Global, which was previously included within our Investment Management segment ( Note 3 , Note 8 ). In addition, during the year ended December 31, 2022, we recorded an impairment charge of $ 29.3 million on goodwill within our Investment Management segment ( Note 7 , Note 9 ).

Our portfolio is comprised of domestic and international investments. At December 31, 2022, our international investments within our Real Estate segment were comprised of investments in Poland, Germany, the Netherlands, Spain, the United Kingdom, France, Italy, Denmark, Croatia, Canada, Norway, Mexico, Finland, Lithuania, Hungary, Portugal, Slovakia, the Czech Republic, Belgium, Austria, Sweden, Japan, Mauritius, Latvia, and Estonia. No tenant or international country individually comprised at least 10% of our total lease revenues for the years ended December 31, 2022, 2021, or 2020, or at least 10% of our total long-lived assets at December 31, 2022 or 2021. 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,
			2022						2021						2020
Revenues
Domestic			$	985,763					$	860,961					$	756,763
International			482,338						451,165						421,234
Total			$	1,468,101					$	1,312,126					$	1,177,997

			December 31,
			2022						2021
Long-lived Assets
Domestic			$	10,053,422					$	8,170,448
International			5,435,476						4,866,921
Total			$	15,488,898					$	13,037,369
Equity Investments in Real Estate
Domestic			$	286,708					$	236,643
International			38,569						55,260
Total			$	325,277					$	291,903

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Acquisition

In January 2023, we completed one acquisition for approximately $ 64.8 million.

Disposition

In January 2023, we sold one property for gross proceeds of $ 11.2 million, which was classified as held for sale as of December 31, 2022 ( Note 5 ).

Issuances Under our ATM Program

In January 2023, we sold 353,264 shares of our common stock through our ATM Forwards at a weighted-average price of $ 81.94 per share for anticipated net proceeds of approximately $ 29 million ( Note 13 ).

Amended Credit Facility

In January 2023, we entered into a Third Amendment to the Credit Agreement ( Note 11 ) to (i) replace the benchmark rate at which U.S.-dollar-denominated borrowings bear interest from LIBOR to the forward-looking SOFR and (ii) increase the aggregate principal amount (of revolving and term loans) available under the Senior Unsecured Credit Facility from an amount not to exceed the U.S. dollar equivalent of $ 2.75 billion to $ 3.05 billion, subject to the conditions to increase set forth in the Credit Agreement.

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W. P. CAREY INC.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2022, 2021, and 2020

(in thousands)

Description						Balance at Beginning of Year						Other Additions						Deductions						Balance at End of Year
Year Ended December 31, 2022
Valuation reserve for deferred tax assets						$	108,812					$	34,894					$	( 37,521 )					$	106,185
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

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W. P. CAREY INC.

SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2022

(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
Real Estate Subject to Operating Leases
Industrial facilities in Erlanger, KY						$	—					$	1,526					$	21,427					$	2,966					$	( 84 )					$	1,526					$	24,309					$	25,835					$	15,406					1979; 1987						Jan. 1998						40 yrs.
Industrial facilities in Thurmont, MD and Farmington, NY						—						729						5,903						—						—						729						5,903						6,632						3,420						1964; 1983						Jan. 1998						15 yrs.
Warehouse facility in Commerce, CA						—						4,905						11,898						—						( 3,043 )						4,573						9,187						13,760						5,820						1948						Jan. 1998						40 yrs.
Industrial facility in Toledo, OH						—						224						2,408						—						—						224						2,408						2,632						2,007						1966						Jan. 1998						40 yrs.
Industrial facility in Goshen, IN						—						239						940						—						—						239						940						1,179						604						1973						Jan. 1998						40 yrs.
Office facility in Raleigh, NC						—						1,638						2,844						187						( 2,554 )						828						1,287						2,115						1,085						1983						Jan. 1998						20 yrs.
Office facility in King of Prussia, PA						—						1,219						6,283						1,295						—						1,219						7,578						8,797						4,627						1968						Jan. 1998						40 yrs.
Industrial facility in Pinconning, MI						—						32						1,692						—						—						32						1,692						1,724						1,057						1948						Jan. 1998						40 yrs.
Industrial facilities in Sylmar, CA						—						2,052						5,322						—						( 1,889 )						1,494						3,991						5,485						2,504						1962; 1979						Jan. 1998						40 yrs.
Retail facilities in the United States						—						9,382						—						238						14,696						9,025						15,291						24,316						10,071						Various						Jan. 1998						15 yrs.
Land in Glendora, CA						—						1,135						—						—						17						1,152						—						1,152						—						N/A						Jan. 1998						N/A
Warehouse facility in Doraville, GA						—						3,288						9,864						17,079						( 11,410 )						3,288						15,533						18,821						2,797						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						24,648						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						16,742						1989						Jan. 1998						40 yrs.
Office facility in Bridgeton, MO						—						842						4,762						2,523						( 196 )						842						7,089						7,931						4,307						1972						Jan. 1998						40 yrs.
Warehouse facility in Memphis, TN						—						1,882						3,973						294						( 3,892 )						328						1,929						2,257						1,591						1969						Jan. 1998						15 yrs.
Industrial facility in Romulus, MI						—						454						6,411						525						—						454						6,936						7,390						2,766						1970						Jan. 1998						10 yrs.
Retail facility in Bellevue, WA						—						4,125						11,812						393						( 123 )						4,371						11,836						16,207						7,149						1994						Apr. 1998						40 yrs.
Office facility in Rio Rancho, NM						—						1,190						9,353						5,866						( 238 )						2,287						13,884						16,171						7,639						1999						Jul. 1998						40 yrs.
Office facility in Moorestown, NJ						—						351						5,981						1,690						1						351						7,672						8,023						4,887						1964						Feb. 1999						40 yrs.
Industrial facility in Winston-Salem, NC						—						1,860						12,539						3,075						( 7,325 )						925						9,224						10,149						5,591						1980						Sep. 2002						40 yrs.
Office facilities in Playa Vista and Venice, CA						19,523						2,032						10,152						52,817						1						5,889						59,113						65,002						20,644						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						2,288						1995						Sep. 2004						40 yrs.
Warehouse facilities in Apopka, FL						—						362						10,855						1,195						( 155 )						337						11,920						12,257						4,891						1969						Sep. 2004						40 yrs.
Land in San Leandro, CA						—						1,532						—						—						—						1,532						—						1,532						—						N/A						Dec. 2006						N/A
Fitness facility in Austin, TX						—						1,725						5,168						—						—						1,725						5,168						6,893						2,917						1995						Dec. 2006						29 yrs.
Retail facility in Wroclaw, Poland						—						3,600						10,306						—						( 4,260 )						2,667						6,979						9,646						2,596						2007						Dec. 2007						40 yrs.
Office facility in Fort Worth, TX						—						4,600						37,580						367						—						4,600						37,947						42,547						12,191						2003						Feb. 2010						40 yrs.
Warehouse facility in Mallorca, Spain						—						11,109						12,636						—						( 2,543 )						9,901						11,301						21,202						3,553						2008						Jun. 2010						40 yrs.
Net-lease hotels in the United States						—						32,680						198,999						—						( 10,651 )						30,099						190,929						221,028						56,001						1989; 1990						Sep. 2012						34 - 37 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Auburn, IN; Clinton Township, MI; and Bluffton, OH						—						4,403						20,298						—						( 3,870 )						2,589						18,242						20,831						5,915						1968; 1975; 1995						Sep. 2012; Jan. 2014						30 yrs.
Office facility in Irvine, CA						—						4,173						—						—						13,766						4,173						13,766						17,939						665						1981						Sep. 2012						31 yrs.
Industrial facility in Alpharetta, GA						—						2,198						6,349						1,247						—						2,198						7,596						9,794						2,675						1997						Sep. 2012						30 yrs.
Office facilities in St. Petersburg, FL						—						3,280						24,627						4,627						—						3,280						29,254						32,534						9,207						1996; 1999						Sep. 2012						30 yrs.
Movie theater in Baton Rouge, LA						—						4,168						5,724						3,200						—						4,168						8,924						13,092						3,105						2003						Sep. 2012						30 yrs.
Industrial and office facility in San Diego, CA						—						7,804						16,729						5,939						( 832 )						7,804						21,836						29,640						7,626						2002						Sep. 2012						30 yrs.
Industrial facility in Richmond, CA						—						895						1,953						—						—						895						1,953						2,848						669						1999						Sep. 2012						30 yrs.
Warehouse facilities in the United States						—						16,386						84,668						10,959						—						16,386						95,627						112,013						29,926						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						3,725						1948; 1989						Sep. 2012						30 yrs.
Industrial facilities in Chattanooga, TN						—						558						5,923						—						—						558						5,923						6,481						2,006						1974; 1989						Sep. 2012						30 yrs.
Industrial facility in Mooresville, NC						—						756						9,775						—						—						756						9,775						10,531						3,302						1997						Sep. 2012						30 yrs.
Industrial facility in McCalla, AL						—						960						14,472						42,662						( 254 )						2,076						55,764						57,840						12,717						2004						Sep. 2012						31 yrs.
Office facility in Yardley, PA						—						1,726						12,781						4,378						—						1,726						17,159						18,885						5,555						2002						Sep. 2012						30 yrs.
Industrial facility in Fort Smith, AZ						—						1,063						6,159						—						—						1,063						6,159						7,222						2,058						1982						Sep. 2012						30 yrs.
Retail facilities in Greenwood, IN and Buffalo, NY						2,519						—						19,990						—						—						—						19,990						19,990						6,608						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						2,771						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						8,207						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						6,657						Various						Sep. 2012						31 yrs.
Industrial and warehouse facility in Mesquite, TX						—						2,702						13,029						—						—						2,702						13,029						15,731						507						1972						Sep. 2012						31 yrs.
Industrial facilities in Tolleson, AZ; Alsip, IL; and Solvay, NY						—						6,080						23,424						546						—						6,080						23,970						30,050						7,690						1990; 1994; 2000						Sep. 2012						31 yrs.
Fitness facility in Memphis, TN						—						4,877						4,258						5,215						( 2,353 )						2,027						9,970						11,997						4,415						1990						Sep. 2012						31 yrs.
Warehouse facilities in Oceanside, CA and Concordville, PA						1,045						3,333						8,270						—						—						3,333						8,270						11,603						2,719						1989; 1996						Sep. 2012						31 yrs.
Net-lease self-storage facilities in the United States						—						74,551						319,186						—						( 50 )						74,501						319,186						393,687						103,823						Various						Sep. 2012						31 yrs.
Warehouse facility in La Vista, NE						17,095						4,196						23,148						—						—						4,196						23,148						27,344						7,095						2005						Sep. 2012						33 yrs.
Office facility in Pleasanton, CA						—						3,675						7,468						—						—						3,675						7,468						11,143						2,423						2000						Sep. 2012						31 yrs.
Office facility in San Marcos, TX						—						440						688						—						—						440						688						1,128						223						2000						Sep. 2012						31 yrs.
Office facility in Chicago, IL						—						2,169						19,010						83						( 72 )						2,169						19,021						21,190						6,125						1910						Sep. 2012						31 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Hollywood and Orlando, FL						—						3,639						1,269						—						—						3,639						1,269						4,908						409						1996						Sep. 2012						31 yrs.
Warehouse facility in Golden, CO						—						808						4,304						77						—						808						4,381						5,189						1,551						1998						Sep. 2012						30 yrs.
Industrial facility in Texarkana, TX						—						1,755						4,493						—						( 2,783 )						216						3,249						3,465						1,046						1997						Sep. 2012						31 yrs.
Industrial facility in South Jordan, UT						—						2,183						11,340						1,642						—						2,183						12,982						15,165						4,093						1995						Sep. 2012						31 yrs.
Warehouse facility in Ennis, TX						—						478						4,087						145						( 145 )						478						4,087						4,565						1,316						1989						Sep. 2012						31 yrs.
Office facility in Paris, France						—						23,387						43,450						703						( 11,450 )						19,397						36,693						56,090						11,375						1975						Sep. 2012						32 yrs.
Retail facilities in Poland						—						26,564						72,866						—						( 17,002 )						21,993						60,435						82,428						26,047						Various						Sep. 2012						23 - 34 yrs.
Industrial facilities in Danbury, CT and Bedford, MA						—						3,519						16,329						—						—						3,519						16,329						19,848						5,608						1965; 1980						Sep. 2012						29 yrs.
Industrial facility in Brownwood, TX						—						722						6,268						—						—						722						6,268						6,990						1,671						1964						Sep. 2012						15 yrs.
Industrial facility in Rochester, MN						—						809						14,236						1,200						—						809						15,436						16,245						673						1997						Sep. 2012						31 yrs.
Industrial and office facility in Tampere, Finland						—						2,309						37,153						—						( 7,176 )						1,865						30,421						32,286						9,311						2012						Jun. 2013						40 yrs.
Office facility in Quincy, MA						—						2,316						21,537						127						—						2,316						21,664						23,980						5,594						1989						Jun. 2013						40 yrs.
Office facility in Salford, United Kingdom						—						—						30,012						—						( 6,940 )						—						23,072						23,072						5,484						1997						Sep. 2013						40 yrs.
Office facility in Lone Tree, CO						—						4,761						28,864						3,381						—						4,761						32,245						37,006						8,768						2001						Nov. 2013						40 yrs.
Office facility in Mönchengladbach, Germany						27,642						2,154						6,917						50,626						( 4,660 )						2,048						52,989						55,037						9,449						2015						Dec. 2013						40 yrs.
Fitness facility in Houston, TX						—						2,430						2,270						—						—						2,430						2,270						4,700						903						1995						Jan. 2014						23 yrs.
Fitness facility in St. Charles, MO						—						1,966						1,368						1,658						—						1,966						3,026						4,992						1,140						1987						Jan. 2014						27 yrs.
Office facility in Scottsdale, AZ						—						22,300						42,329						89						—						22,300						42,418						64,718						3,052						1977						Jan. 2014						34 yrs.
Industrial facility in Aurora, CO						—						737						2,609						—						—						737						2,609						3,346						736						1985						Jan. 2014						32 yrs.
Warehouse facility in Burlington, NJ						—						3,989						6,213						377						—						3,989						6,590						10,579						2,323						1999						Jan. 2014						26 yrs.
Industrial facility in Albuquerque, NM						—						2,467						3,476						606						—						2,467						4,082						6,549						1,382						1993						Jan. 2014						27 yrs.
Industrial facility in North Salt Lake, UT						—						10,601						17,626						—						( 16,936 )						4,388						6,903						11,291						2,352						1981						Jan. 2014						26 yrs.
Industrial facility in Lexington, NC						—						2,185						12,058						—						( 2,519 )						494						11,230						11,724						3,608						2003						Jan. 2014						28 yrs.
Industrial facility in Dallas, TX						—						3,190						10,010						—						—						3,190						10,010						13,200						133						1968						Jan. 2014						32 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						16,530						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						7,996						1978; 1979; 1986						Jan. 2014						17 - 34 yrs.
Retail facility in Torrance, CA						—						8,412						12,241						2,227						( 77 )						8,335						14,468						22,803						5,219						1973						Jan. 2014						25 yrs.
Office facility in Houston, TX						—						6,578						424						560						—						6,578						984						7,562						640						1978						Jan. 2014						27 yrs.
Land in Doncaster, United Kingdom						—						4,257						4,248						—						( 8,146 )						359						—						359						—						N/A						Jan. 2014						N/A
Warehouse facility in Norwich, CT						—						3,885						21,342						—						2						3,885						21,344						25,229						6,736						1960						Jan. 2014						28 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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
Warehouse facility in Norwich, CT						—						1,437						9,669						—						—						1,437						9,669						11,106						3,052						2005						Jan. 2014						28 yrs.
Warehouse facility in Whitehall, PA						—						7,435						9,093						27,148						( 9,545 )						6,983						27,148						34,131						971						2021						Jan. 2014						40 yrs.
Retail facility in York, PA						—						3,776						10,092						—						( 6,413 )						527						6,928						7,455						1,830						2005						Jan. 2014						34 yrs.
Warehouse facilities in Atlanta, GA and Elkwood, VA						—						5,356						4,121						—						( 2,104 )						4,284						3,089						7,373						989						1975						Jan. 2014						28 yrs.
Warehouse facility in Harrisburg, NC						—						1,753						5,840						781						( 111 )						1,642						6,621						8,263						2,071						2000						Jan. 2014						26 yrs.
Industrial facility in Chandler, AZ; industrial, office, and warehouse facility in Englewood, CO; and land in Englewood, CO						1,552						4,306						7,235						—						3						4,306						7,238						11,544						2,133						1978; 1987						Jan. 2014						30 yrs.
Industrial facility in Cynthiana, KY						831						1,274						3,505						525						( 107 )						1,274						3,923						5,197						1,257						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						722						1955; 1966; 1970						Jan. 2014						32 yrs.
Industrial facility in Columbia, SC						—						2,843						11,886						—						—						2,843						11,886						14,729						4,692						1962						Jan. 2014						23 yrs.
Movie theater in Midlothian, VA						—						2,824						16,618						—						—						2,824						16,618						19,442						2,355						2000						Jan. 2014						40 yrs.
Net-lease student housing facility in Laramie, WY						—						1,966						18,896						—						—						1,966						18,896						20,862						5,920						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						8,212						1996						Jan. 2014						23 yrs.
Land in Sunnyvale, CA						—						9,297						24,086						—						( 26,077 )						7,306						—						7,306						—						N/A						Jan. 2014						N/A
Industrial facilities in Hampton, NH						—						8,990						7,362						—						—						8,990						7,362						16,352						2,164						1976						Jan. 2014						30 yrs.
Industrial facilities in France						—						36,306						5,212						337						3,123						24,411						20,567						44,978						2,904						Various						Jan. 2014						23 yrs.
Retail facility in Fairfax, VA						—						3,402						16,353						—						( 6,219 )						1,914						11,622						13,536						5,536						1998						Jan. 2014						26 yrs.
Retail facility in Lombard, IL						—						5,087						8,578						—						—						5,087						8,578						13,665						2,904						1999						Jan. 2014						26 yrs.
Warehouse facility in Plainfield, IN						—						1,578						29,415						1,674						—						1,578						31,089						32,667						8,786						1997						Jan. 2014						30 yrs.
Retail facility in Kennesaw, GA						—						2,849						6,180						5,530						( 76 )						2,773						11,710						14,483						3,966						1999						Jan. 2014						26 yrs.
Retail facility in Leawood, KS						—						1,487						13,417						—						—						1,487						13,417						14,904						4,542						1997						Jan. 2014						26 yrs.
Office facility in Tolland, CT						—						1,817						5,709						—						11						1,817						5,720						7,537						1,860						1968						Jan. 2014						28 yrs.
Warehouse facilities in Lincolnton, NC and Mauldin, SC						—						1,962						9,247						—						—						1,962						9,247						11,209						2,936						1988; 1996						Jan. 2014						28 yrs.
Retail facilities in Germany						—						81,109						153,927						10,510						( 142,195 )						26,287						77,064						103,351						22,737						Various						Jan. 2014						Various
Office facility in Southfield, MI						—						1,726						4,856						89						—						1,726						4,945						6,671						1,425						1985						Jan. 2014						31 yrs.
Office facility in The Woodlands, TX						—						3,204						24,997						—						—						3,204						24,997						28,201						7,075						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						5,395						1978; 1998						Jan. 2014						27 yrs.
Industrial facility in Amherst, NY						5,893						674						7,971						—						—						674						7,971						8,645						3,170						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						5,850						1954; 1997						Jan. 2014						28 yrs.
Office facility in Bloomington, MN						—						2,942						7,155						—						( 3,257 )						1,740						5,100						6,840						2,200						1988						Jan. 2014						28 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Gorinchem, Netherlands						—						1,143						5,648						—						( 1,470 )						896						4,425						5,321						1,393						1995						Jan. 2014						28 yrs.
Retail facility in Cresskill, NJ						—						2,366						5,482						—						19						2,366						5,501						7,867						1,574						1975						Jan. 2014						31 yrs.
Retail facility in Livingston, NJ						—						2,932						2,001						—						14						2,932						2,015						4,947						661						1966						Jan. 2014						27 yrs.
Retail facility in Montclair, NJ						—						1,905						1,403						—						6						1,905						1,409						3,314						462						1950						Jan. 2014						27 yrs.
Retail facility in Morristown, NJ						—						3,258						8,352						—						26						3,258						8,378						11,636						2,750						1973						Jan. 2014						27 yrs.
Retail facility in Summit, NJ						—						1,228						1,465						—						8						1,228						1,473						2,701						483						1950						Jan. 2014						27 yrs.
Industrial facilities in Georgetown, TX and Woodland, WA						—						965						4,113						—						—						965						4,113						5,078						1,087						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						2,514						Various						Jan. 2014						28 yrs.
Industrial facility in Salisbury, NC						—						1,499						8,185						—						—						1,499						8,185						9,684						2,629						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						2,898						1991; 1995						Jan. 2014						27 yrs.
Industrial facility in Cambridge, Canada						—						1,849						7,371						—						( 1,607 )						1,526						6,087						7,613						1,737						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						5,087						Various						Jan. 2014						31 yrs.
Industrial facility in Ramos Arizpe, Mexico						—						1,059						2,886						—						—						1,059						2,886						3,945						821						2000						Jan. 2014						31 yrs.
Industrial facilities in Salt Lake City, UT						—						2,783						3,773						—						—						2,783						3,773						6,556						1,076						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						7,052						2005						Jan. 2014						33 yrs.
Education facility in Mooresville, NC						397						1,795						15,955						—						—						1,795						15,955						17,750						983						2002						Jan. 2014						33 yrs.
Warehouse facilities in Atlanta, Doraville, and Rockmart, GA						—						6,488						77,192						—						—						6,488						77,192						83,680						24,122						1959; 1962; 1991						Jan. 2014						23 - 33 yrs.
Warehouse facility in Muskogee, OK						—						554						4,353						—						( 3,437 )						158						1,312						1,470						357						1992						Jan. 2014						33 yrs.
Industrial facility in Richmond, MO						—						2,211						8,505						747						—						2,211						9,252						11,463						2,938						1996						Jan. 2014						28 yrs.
Industrial facility in Tuusula, Finland						—						6,173						10,321						—						( 3,570 )						4,837						8,087						12,924						2,828						1975						Jan. 2014						26 yrs.
Office facility in Turku, Finland						—						5,343						34,106						3,792						325						5,052						38,514						43,566						11,238						1981						Jan. 2014						28 yrs.
Warehouse facility in Phoenix, AZ						—						6,747						21,352						380						—						6,747						21,732						28,479						7,056						1996						Jan. 2014						28 yrs.
Land in Calgary, Canada						—						3,721						—						—						( 649 )						3,072						—						3,072						—						N/A						Jan. 2014						N/A
Industrial facilities in Kearney, MO; York, NE; Walbridge, OH; Rocky Mount, VA; and Martinsburg, WV						—						4,816						31,712						—						—						4,816						31,712						36,528						114						Various						Jan. 2014						31 yrs.
Industrial facilities in Sandersville, GA; Erwin, TN; and Gainesville, TX						739						955						4,779						—						—						955						4,779						5,734						1,374						1950; 1986; 1996						Jan. 2014						31 yrs.
Industrial facility in Buffalo Grove, IL						2,763						1,492						12,233						—						—						1,492						12,233						13,725						3,527						1996						Jan. 2014						31 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 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						1,728						Various						Jan. 2014						28 yrs.
Office facility in Carlsbad, CA						—						3,230						5,492						—						—						3,230						5,492						8,722						2,076						1999						Jan. 2014						24 yrs.
Movie theater in Pensacola, FL						—						1,746						—						—						5,181						1,746						5,181						6,927						361						2001						Jan. 2014						33 yrs.
Movie theater in Port St. Lucie, FL						—						4,654						2,576						—						—						4,654						2,576						7,230						840						2000						Jan. 2014						27 yrs.
Industrial facility in Nurieux-Volognat, France						—						121						5,328						—						( 1,085 )						94						4,270						4,364						1,177						2000						Jan. 2014						32 yrs.
Industrial facility in Monheim, Germany						—						2,500						5,727						—						( 664 )						2,303						5,260						7,563						209						1992						Jan. 2014						32 yrs.
Warehouse facility in Suwanee, GA						—						2,330						8,406						—						—						2,330						8,406						10,736						2,215						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						3,434						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						6,089						1996						Jan. 2014						16 yrs.
Industrial facility in Mesa, AZ						—						2,888						4,282						—						—						2,888						4,282						7,170						1,401						1991						Jan. 2014						27 yrs.
Industrial facility in North Amityville, NY						—						3,486						11,413						—						—						3,486						11,413						14,899						3,913						1981						Jan. 2014						26 yrs.
Industrial facility in Fort Collins, CO						—						821						7,236						—						—						821						7,236						8,057						1,965						1993						Jan. 2014						33 yrs.
Warehouse facility in Elk Grove Village, IL						—						4,037						7,865						—						—						4,037						7,865						11,902						1,160						1980						Jan. 2014						22 yrs.
Office facility in Washington, MI						—						4,085						7,496						—						—						4,085						7,496						11,581						2,040						1990						Jan. 2014						33 yrs.
Office facility in Houston, TX						—						522						7,448						227						—						522						7,675						8,197						2,610						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						6,282						Various						Jan. 2014						12 - 22 yrs.
Education facility in Sacramento, CA						23,843						—						13,715						—						—						—						13,715						13,715						3,659						2005						Jan. 2014						34 yrs.
Industrial facility in Sankt Ingbert, Germany						—						2,226						17,460						—						( 380 )						2,183						17,123						19,306						1,358						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						2,712						1969; 1974; 1984						Jan. 2014						27 yrs.
Office facility in Tinton Falls, NJ						—						1,958						7,993						725						—						1,958						8,718						10,676						2,476						2001						Jan. 2014						31 yrs.
Industrial facility in Woodland, WA						—						707						1,562						—						—						707						1,562						2,269						395						2009						Jan. 2014						35 yrs.
Warehouse facilities in Gyál and Herceghalom, Hungary						—						14,601						21,915						—						( 7,903 )						11,441						17,172						28,613						7,499						2002; 2004						Jan. 2014						21 yrs.
Industrial facility in Windsor, CT						—						453						637						3,422						( 83 )						453						3,976						4,429						671						1999						Jan. 2014						33 yrs.
Industrial facility in Aurora, CO						—						574						3,999						—						—						574						3,999						4,573						908						2012						Jan. 2014						40 yrs.
Office facility in Chandler, AZ						—						5,318						27,551						105						—						5,318						27,656						32,974						7,032						2000						Mar. 2014						40 yrs.
Warehouse facility in University Park, IL						—						7,962						32,756						221						—						7,962						32,977						40,939						8,126						2008						May 2014						40 yrs.
Office facility in Stavanger, Norway						—						10,296						91,744						—						( 37,742 )						6,550						57,748						64,298						12,287						1975						Aug. 2014						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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
Laboratory facility in Westborough, MA						—						3,409						37,914						53,065						—						3,409						90,979						94,388						12,853						1992						Aug. 2014						40 yrs.
Office facility in Andover, MA						—						3,980						45,120						323						—						3,980						45,443						49,423						9,939						2013						Oct. 2014						40 yrs.
Office facility in Newport, United Kingdom						—						—						22,587						—						( 5,695 )						—						16,892						16,892						3,512						2014						Oct. 2014						40 yrs.
Industrial facility in Lewisburg, OH						—						1,627						13,721						—						—						1,627						13,721						15,348						3,141						2014						Nov. 2014						40 yrs.
Industrial facility in Opole, Poland						—						2,151						21,438						—						( 3,354 )						1,845						18,390						20,235						4,338						2014						Dec. 2014						38 yrs.
Office facilities in Spain						—						51,778						257,624						10						( 39,234 )						47,944						222,234						270,178						46,368						Various						Dec. 2014						Various
Retail facilities in the United Kingdom						—						66,319						230,113						277						( 92,573 )						43,593						160,543						204,136						42,766						Various						Jan. 2015						20 - 40 yrs.
Warehouse facility in Rotterdam, Netherlands						—						—						33,935						20,767						( 3,270 )						—						51,432						51,432						8,516						2014						Feb. 2015						40 yrs.
Retail facility in Bad Fischau, Austria						—						2,855						18,829						—						( 221 )						2,826						18,637						21,463						4,112						1998						Apr. 2015						40 yrs.
Industrial facility in Oskarshamn, Sweden						—						3,090						18,262						—						( 4,435 )						2,447						14,470						16,917						2,999						2015						Jun. 2015						40 yrs.
Office facility in Sunderland, United Kingdom						—						2,912						30,140						—						( 7,546 )						2,247						23,259						25,506						4,949						2007						Aug. 2015						40 yrs.
Industrial facilities in Gersthofen and Senden, Germany and Leopoldsdorf, Austria						—						9,449						15,838						—						( 1,059 )						9,053						15,175						24,228						3,354						2008; 2010						Aug. 2015						40 yrs.
Net-lease hotels in the United States						—						—						49,190						17,396						—						17,396						49,190						66,586						10,402						1988; 1989; 1990						Oct. 2015						38 - 40 yrs.
Retail facilities in the Netherlands						—						5,698						38,130						79						( 306 )						5,658						37,943						43,601						8,397						Various						Nov. 2015						30 - 40 yrs.
Office facility in Irvine, CA						—						7,626						16,137						—						—						7,626						16,137						23,763						2,974						1977						Dec. 2015						40 yrs.
Education facility in Windermere, FL						—						5,090						34,721						15,333						—						5,090						50,054						55,144						11,366						1998						Apr. 2016						38 yrs.
Industrial facilities in the United States						—						66,845						87,575						65,400						( 56,517 )						49,680						113,623						163,303						28,399						Various						Apr. 2016						Various
Industrial facilities in North Dumfries and Ottawa, Canada						—						17,155						10,665						—						( 18,593 )						5,723						3,504						9,227						1,626						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						26,642						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						3,006						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						2,906						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						2,136						Various						Dec. 2016						28 - 40 yrs.
Industrial facility in Chicago, IL						—						2,222						2,655						3,511						—						2,222						6,166						8,388						1,722						1985						Jun. 2017						30 yrs.
Industrial facility in Zawiercie, Poland						—						395						102						10,378						( 931 )						361						9,583						9,944						1,124						2018						Aug. 2017						40 yrs.
Office facility in Roseville, MN						—						2,560						16,025						809						—						2,560						16,834						19,394						2,340						2001						Nov. 2017						40 yrs.
Industrial facility in Radomsko, Poland						—						1,718						59						37,496						( 442 )						1,573						37,258						38,831						1,686						2018						Nov. 2017						40 yrs.
Warehouse facility in Sellersburg, IN						—						1,016						3,838						—						—						1,016						3,838						4,854						648						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						9,046						1995; 2004						Mar. 2018						36 - 40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 and warehouse facilities in Denmark						—						20,304						185,481						—						( 15,928 )						18,733						171,124						189,857						24,289						Various						Jun. 2018						25 - 41 yrs.
Retail facilities in the Netherlands						—						38,475						117,127						—						( 13,057 )						35,246						107,299						142,545						16,996						Various						Jul. 2018						26 - 30 yrs.
Industrial facility in Oostburg, WI						—						786						6,589						—						—						786						6,589						7,375						1,318						2002						Jul. 2018						35 yrs.
Warehouse facility in Kampen, Netherlands						—						3,251						12,858						126						( 1,288 )						2,992						11,955						14,947						2,145						1976						Jul. 2018						26 yrs.
Warehouse facility in Azambuja, Portugal						—						13,527						35,631						28,051						( 6,533 )						12,463						58,213						70,676						6,890						1994						Sep. 2018						28 yrs.
Retail facilities in Amsterdam, Moordrecht, and Rotterdam, Netherlands						—						2,582						18,731						11,338						( 2,036 )						2,420						28,195						30,615						3,550						Various						Oct. 2018						27 - 37 yrs.
Office and warehouse facilities in Bad Wünnenberg and Soest, Germany						—						2,916						39,687						—						( 2,718 )						2,730						37,155						39,885						4,152						1982; 1986						Oct. 2018						40 yrs.
Industrial facility in Norfolk, NE						—						802						3,686						—						—						802						3,686						4,488						521						1975						Oct. 2018						40 yrs.
Education facility in Chicago, IL						—						7,720						17,266						—						( 7,945 )						5,113						11,928						17,041						1,764						1912						Oct. 2018						40 yrs.
Fitness facilities in Phoenix, AZ and Columbia, MD						—						18,286						33,030						—						—						18,286						33,030						51,316						3,655						2006						Oct. 2018						40 yrs.
Retail facility in Gorzow, Poland						—						1,736						8,298						—						( 640 )						1,625						7,769						9,394						932						2008						Oct. 2018						40 yrs.
Industrial facilities in Sergeant Bluff, IA; Bossier City, LA; and Alvarado, TX						8,986						6,460						49,462						—						—						6,460						49,462						55,922						5,927						Various						Oct. 2018						40 yrs.
Industrial facility in Glendale Heights, IL						—						4,237						45,484						—						—						4,237						45,484						49,721						3,008						1991						Oct. 2018						38 yrs.
Industrial facilities in Mayodan, Sanford, and Stoneville, NC						—						3,505						20,913						—						—						3,505						20,913						24,418						2,157						1992; 1997; 1998						Oct. 2018						29 yrs.
Warehouse facility in Dillon, SC						—						3,424						43,114						—						—						3,424						43,114						46,538						5,166						2001						Oct. 2018						40 yrs.
Office facility in Birmingham, United Kingdom						—						7,383						7,687						—						( 1,044 )						6,872						7,154						14,026						783						2009						Oct. 2018						40 yrs.
Retail facilities in Spain						—						17,626						44,501						—						( 3,964 )						16,502						41,661						58,163						4,702						Various						Oct. 2018						40 yrs.
Warehouse facility in Gadki, Poland						—						1,376						6,137						—						( 480 )						1,288						5,745						7,033						655						2011						Oct. 2018						40 yrs.
Office facility in The Woodlands, TX						—						1,697						52,289						—						—						1,697						52,289						53,986						5,583						2009						Oct. 2018						40 yrs.
Office facility in Hoffman Estates, IL						—						5,550						14,214						—						—						5,550						14,214						19,764						1,574						2009						Oct. 2018						40 yrs.
Warehouse facility in Zagreb, Croatia						—						15,789						33,287						—						( 3,132 )						14,781						31,163						45,944						5,163						2001						Oct. 2018						26 yrs.
Industrial facilities in Middleburg Heights and Union Township, OH						3,899						1,295						13,384						—						—						1,295						13,384						14,679						1,468						1990; 1997						Oct. 2018						40 yrs.
Retail facility in Las Vegas, NV						—						—						79,720						—						—						—						79,720						79,720						8,322						2012						Oct. 2018						40 yrs.
Industrial facilities in the United States						—						20,517						14,135						—						30,060						22,585						42,127						64,712						3,476						Various						Oct. 2018						40 yrs.
Warehouse facility in Bowling Green, KY						—						2,652						51,915						72,976						—						2,652						124,891						127,543						7,605						2011						Oct. 2018						40 yrs.
Warehouse facilities in the United Kingdom						—						6,791						2,315						—						( 631 )						6,321						2,154						8,475						264						Various						Oct. 2018						40 yrs.
Industrial facility in Evansville, IN						—						180						22,095						—						—						180						22,095						22,275						2,362						2009						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 facilities in Tampa, FL						—						3,889						49,843						1,498						—						3,889						51,341						55,230						5,585						1985; 2000						Oct. 2018						40 yrs.
Warehouse facility in Elorrio, Spain						—						7,858						12,728						—						( 1,313 )						7,357						11,916						19,273						1,503						1996						Oct. 2018						40 yrs.
Industrial and office facilities in Elberton, GA						—						879						2,014						—						—						879						2,014						2,893						303						1997; 2002						Oct. 2018						40 yrs.
Office facility in Tres Cantos, Spain						47,277						24,344						39,646						—						( 4,084 )						22,790						37,116						59,906						4,209						2002						Oct. 2018						40 yrs.
Office facility in Hartland, WI						2,228						1,454						6,406						—						—						1,454						6,406						7,860						752						2001						Oct. 2018						40 yrs.
Retail facilities in Dugo Selo, Kutina, Samobor, Spansko, and Zagreb, Croatia						—						5,549						12,408						1,625						5,048						6,373						18,257						24,630						2,841						2000; 2002; 2003						Oct. 2018						26 yrs.
Office and warehouse facilities in the United States						—						42,793						193,666						—						—						42,793						193,666						236,459						22,416						Various						Oct. 2018						40 yrs.
Warehouse facilities in Breda, Elst, Gieten, Raalte, and Woerden, Netherlands						—						37,755						91,666						4,787						( 8,402 )						35,346						90,460						125,806						9,515						Various						Oct. 2018						40 yrs.
Warehouse facilities in Oxnard and Watsonville, CA						—						22,453						78,814						—						—						22,453						78,814						101,267						8,695						1975; 1994; 2002						Oct. 2018						40 yrs.
Retail facilities in Italy						—						75,492						138,280						7,242						( 14,891 )						70,675						135,448						206,123						15,617						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						301						1982						Oct. 2018						40 yrs.
Office facility in Martinsville, VA						—						1,082						8,108						—						—						1,082						8,108						9,190						950						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						1,084						2012						Oct. 2018						40 yrs.
Net-lease self-storage facilities in the United States						—						19,583						108,971						—						—						19,583						108,971						128,554						12,879						Various						Oct. 2018						40 yrs.
Warehouse facility in Middleburg Heights, OH						—						542						2,507						—						—						542						2,507						3,049						275						2002						Oct. 2018						40 yrs.
Net-lease self-storage facility in Fort Worth, TX						—						691						6,295						—						—						691						6,295						6,986						761						2004						Oct. 2018						40 yrs.
Retail facilities in Delnice, Pozega, and Sesvete, Croatia						—						5,519						9,930						1,291						( 1,212 )						5,167						10,361						15,528						1,707						2011						Oct. 2018						27 yrs.
Office facilities in Eagan and Virginia, MN						—						16,302						91,239						—						( 722 )						15,954						90,865						106,819						10,510						Various						Oct. 2018						40 yrs.
Retail facility in Orlando, FL						—						6,262						25,134						430						—						6,371						25,455						31,826						2,692						2011						Oct. 2018						40 yrs.
Industrial facility in Avon, OH						—						1,447						5,564						—						—						1,447						5,564						7,011						662						2001						Oct. 2018						40 yrs.
Industrial facility in Chimelow, Poland						—						6,158						28,032						—						( 2,182 )						5,765						26,243						32,008						2,999						2012						Oct. 2018						40 yrs.
Net-lease self-storage facility in Fayetteville, NC						—						1,839						4,654						—						—						1,839						4,654						6,493						718						2001						Oct. 2018						40 yrs.
Retail facilities in the United States						—						19,529						42,318						—						—						19,529						42,318						61,847						4,892						Various						Oct. 2018						40 yrs.
Education facilities in Montgomery, AL and Savannah, GA						—						5,508						12,032						—						—						5,508						12,032						17,540						1,375						1969; 2002						Oct. 2018						40 yrs.
Office facilities in St. Louis, MO						—						1,297						5,362						7,951						—						1,836						12,774						14,610						1,545						1995; 1999						Oct. 2018; Aug. 2021						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 and warehouse facility in Zary, PL						—						2,062						10,034						—						( 772 )						1,931						9,393						11,324						1,101						2013						Oct. 2018						40 yrs.
Industrial facilities in San Antonio, TX and Sterling, VA						—						3,198						23,981						78,728						( 462 )						6,767						98,678						105,445						7,277						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						1,203						1961						Oct. 2018						40 yrs.
Industrial facility in Portage, WI						3,861						3,450						7,797						—						—						3,450						7,797						11,247						982						1970						Oct. 2018						40 yrs.
Office facility in Warrenville, IL						—						3,662						23,711						—						—						3,662						23,711						27,373						2,614						2002						Oct. 2018						40 yrs.
Warehouse facility in Saitama Prefecture, Japan						—						13,507						25,301						6,586						( 11,253 )						11,035						23,106						34,141						2,368						2007						Oct. 2018						40 yrs.
Retail facility in Dallas, TX						—						2,977						16,168						—						—						2,977						16,168						19,145						1,732						1913						Oct. 2018						40 yrs.
Office facility in Houston, TX						—						23,161						104,266						1,118						—						23,161						105,384						128,545						11,173						1973						Oct. 2018						40 yrs.
Retail facilities in Croatia						—						9,000						13,002						1,415						( 5,811 )						7,305						10,301						17,606						1,504						Various						Oct. 2018						29 - 37 yrs.
Office facility in Northbrook, IL						—						—						493						447						—						—						940						940						212						2007						Oct. 2018						40 yrs.
Education facilities in Chicago, IL						—						18,510						163						—						( 16,831 )						1,793						49						1,842						39						2014; 2015						Oct. 2018						40 yrs.
Warehouse facility in Dillon, SC						—						3,516						44,933						—						—						3,516						44,933						48,449						5,343						2013						Oct. 2018						40 yrs.
Net-lease self-storage facilities in New York City, NY						—						29,223						77,202						714						—						29,223						77,916						107,139						8,175						Various						Oct. 2018						40 yrs.
Net-lease self-storage facility in Hilo, HI						—						769						12,869						—						—						769						12,869						13,638						1,361						2007						Oct. 2018						40 yrs.
Net-lease self-storage facility in Clearwater, FL						—						1,247						5,733						—						—						1,247						5,733						6,980						690						2001						Oct. 2018						40 yrs.
Warehouse facilities in Gadki, Poland						—						10,422						47,727						57						( 3,714 )						9,756						44,736						54,492						5,185						2007; 2010						Oct. 2018						40 yrs.
Net-lease self-storage facility in Orlando, FL						—						1,070						8,686						—						—						1,070						8,686						9,756						986						2000						Oct. 2018						40 yrs.
Retail facility in Lewisville, TX						—						3,485						11,263						—						—						3,485						11,263						14,748						1,256						2004						Oct. 2018						40 yrs.
Industrial facility in Wageningen, Netherlands						—						5,227						18,793						—						( 1,266 )						4,894						17,860						22,754						2,039						2013						Oct. 2018						40 yrs.
Net-lease self-storage facility in Palm Coast, FL						—						1,994						4,982						—						—						1,994						4,982						6,976						704						2001						Oct. 2018						40 yrs.
Office facility in Auburn Hills, MI						—						1,910						6,773						—						—						1,910						6,773						8,683						771						2012						Oct. 2018						40 yrs.
Net-lease self-storage facility in Holiday, FL						—						1,730						4,213						—						—						1,730						4,213						5,943						580						1975						Oct. 2018						40 yrs.
Office facility in Tempe, AZ						13,417						—						19,533						—						—						—						19,533						19,533						2,152						2000						Oct. 2018						40 yrs.
Office facility in Tucson, AZ						—						2,448						17,353						869						—						2,448						18,222						20,670						1,940						2002						Oct. 2018						40 yrs.
Industrial facility in Drunen, Netherlands						—						2,316						9,370						—						( 745 )						2,169						8,772						10,941						976						2014						Oct. 2018						40 yrs.
Industrial facility New Concord, OH						1,248						958						2,309						—						—						958						2,309						3,267						313						1999						Oct. 2018						40 yrs.
Office facility in Krakow, Poland						—						2,381						6,212						—						( 548 )						2,229						5,816						8,045						652						2003						Oct. 2018						40 yrs.
Retail facility in Gelsenkirchen, Germany						11,156						2,178						17,097						—						( 1,230 )						2,039						16,006						18,045						1,774						2000						Oct. 2018						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Mszczonow and Tomaszow Mazowiecki, Poland						—						8,782						53,575						—						( 3,979 )						8,222						50,156						58,378						6,025						1995; 2000						Oct. 2018						40 yrs.
Office facility in Plymouth, MN						—						2,871						26,353						686						—						2,871						27,039						29,910						2,982						1999						Oct. 2018						40 yrs.
Office facility in San Antonio, TX						—						3,094						16,624						—						—						3,094						16,624						19,718						1,867						2002						Oct. 2018						40 yrs.
Warehouse facility in Sered, Slovakia						—						3,428						28,005						—						( 2,006 )						3,209						26,218						29,427						2,935						2004						Oct. 2018						40 yrs.
Industrial facility in Tuchomerice, Czech Republic						—						7,864						27,006						—						( 2,226 )						7,362						25,282						32,644						2,794						1998						Oct. 2018						40 yrs.
Office facility in Warsaw, Poland						31,475						—						44,990						—						( 2,871 )						—						42,119						42,119						4,540						2015						Oct. 2018						40 yrs.
Warehouse facility in Kaunas, Lithuania						34,541						10,199						47,391						—						( 3,675 )						9,548						44,367						53,915						5,022						2008						Oct. 2018						40 yrs.
Net-lease student housing facility in Jacksonville, FL						11,562						906						17,020						—						—						906						17,020						17,926						1,834						2015						Oct. 2018						40 yrs.
Warehouse facilities in Houston, TX						—						791						1,990						—						—						791						1,990						2,781						234						1972						Oct. 2018						40 yrs.
Office facility in Oak Creek, WI						—						2,858						11,055						—						—						2,858						11,055						13,913						1,310						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						4,527						Various						Oct. 2018						40 yrs.
Warehouse facility in Perrysburg, OH						—						806						11,922						—						—						806						11,922						12,728						1,483						1974						Oct. 2018						40 yrs.
Warehouse facility in Dillon, SC						—						620						46,319						434						—						620						46,753						47,373						4,422						2019						Oct. 2018						40 yrs.
Warehouse facility in Zabia Wola, Poland						14,507						4,742						23,270						5,636						( 2,118 )						4,439						27,091						31,530						2,974						1999						Oct. 2018						40 yrs.
Office facility in Buffalo Grove, IL						—						2,224						6,583						—						—						2,224						6,583						8,807						749						1992						Oct. 2018						40 yrs.
Warehouse facilities in McHenry, IL						—						5,794						21,141						—						—						5,794						21,141						26,935						3,539						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						1,459						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						5,454						2007						Dec. 2018						37 yrs.
Industrial facility in San Luis Potosi, Mexico						—						2,787						12,945						—						—						2,787						12,945						15,732						1,527						2009						Dec. 2018						39 yrs.
Industrial facility in Legnica, Poland						—						995						9,787						6,007						( 1,088 )						930						14,771						15,701						1,915						2002						Dec. 2018						29 yrs.
Industrial facility in Meru, France						—						4,231						14,731						8						( 1,186 )						3,966						13,818						17,784						2,094						1997						Dec. 2018						29 yrs.
Education facility in Portland, OR						—						2,396						23,258						4,177						—						2,396						27,435						29,831						3,355						2006						Feb. 2019						40 yrs.
Office facility in Morrisville, NC						—						2,374						30,140						2,172						—						2,374						32,312						34,686						3,375						1998						Mar. 2019						40 yrs.
Warehouse facility in Inwood, WV						—						3,265						36,692						—						—						3,265						36,692						39,957						3,817						2000						Mar. 2019						40 yrs.
Industrial facility in Hurricane, UT						—						1,914						37,279						—						—						1,914						37,279						39,193						3,668						2011						Mar. 2019						40 yrs.
Industrial facility in Bensenville, IL						—						8,640						4,948						—						300						8,940						4,948						13,888						782						1981						Mar. 2019						40 yrs.
Industrial facility in Katowice, Poland						—						—						764						15,163						( 484 )						—						15,443						15,443						1,195						2019						Apr. 2019						40 yrs.
Industrial facilities in Westerville, OH and North Wales, PA						—						1,545						6,508						—						—						1,545						6,508						8,053						781						1960; 1997						May 2019						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Fargo, ND; Norristown, PA; and Atlanta, TX						—						1,616						5,589						—						—						1,616						5,589						7,205						818						Various						May 2019						40 yrs.
Industrial facilities in Chihuahua and Juarez, Mexico						—						3,426						7,286						—						—						3,426						7,286						10,712						965						1983; 1986; 1991						May 2019						40 yrs.
Warehouse facility in Statesville, NC						—						1,683						13,827						—						—						1,683						13,827						15,510						1,489						1979						Jun. 2019						40 yrs.
Industrial facilities in Searcy, AR and Conestoga, PA						—						4,290						51,410						21,027						—						4,678						72,049						76,727						6,511						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						2,203						1964; 1992; 1993						Jul. 2019						40 yrs.
Industrial facilities in Brockville and Prescott, Canada						—						2,025						9,519						—						—						2,025						9,519						11,544						990						1955; 1995						Jul. 2019						40 yrs.
Industrial facility in Dordrecht, Netherlands						—						3,233						10,954						—						( 424 )						3,140						10,623						13,763						890						1986						Sep. 2019						40 yrs.
Industrial facilities in York, PA and Lexington, SC						—						4,155						22,930						—						—						4,155						22,930						27,085						2,600						1968; 1971						Oct. 2019						40 yrs.
Industrial facility in Queretaro, Mexico						—						2,851						12,748						—						( 3 )						2,851						12,745						15,596						1,305						1999						Oct. 2019						40 yrs.
Office facility in Dearborn, MI						—						1,431						5,402						—						—						1,431						5,402						6,833						567						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						2,444						Various						Nov. 2019						40 yrs.
Industrial facility in Pardubice, Czech Republic						—						1,694						8,793						436						( 377 )						1,639						8,907						10,546						742						1970						Nov. 2019						40 yrs.
Warehouse facilities in Brabrand, Denmark and Arlandastad, Sweden						—						6,499						27,899						146						( 1,659 )						6,140						26,745						32,885						2,294						2012; 2017						Nov. 2019						40 yrs.
Retail facility in Hamburg, PA						—						4,520						34,167						—						—						4,520						34,167						38,687						2,994						2003						Dec. 2019						40 yrs.
Warehouse facility in Charlotte, NC						—						6,481						82,936						—						—						6,481						82,936						89,417						7,128						1995						Dec. 2019						40 yrs.
Warehouse facility in Buffalo Grove, IL						—						3,287						10,167						—						—						3,287						10,167						13,454						1,049						1987						Dec. 2019						40 yrs.
Industrial facility in Hvidovre, Denmark						—						1,931						4,243						—						( 265 )						1,856						4,053						5,909						436						2007						Dec. 2019						40 yrs.
Warehouse facility in Huddersfield, United Kingdom						—						8,659						29,752						—						( 3,428 )						7,886						27,097						34,983						2,156						2005						Dec. 2019						40 yrs.
Warehouse facility in Newark, United Kingdom						—						21,869						74,777						—						( 8,170 )						20,020						68,456						88,476						5,111						2006						Jan. 2020						40 yrs.
Industrial facility in Langen, Germany						—						14,160						7,694						32,169						( 5,999 )						12,461						35,563						48,024						1,695						2021						Jan. 2020						40 yrs.
Industrial facility in Aurora, OR						—						2,914						21,459						—						( 5,000 )						2,914						16,459						19,373						1,209						1976						Jan. 2020						40 yrs.
Warehouse facility in Vojens, Denmark						—						1,031						8,784						—						( 296 )						1,000						8,519						9,519						622						2020						Jan. 2020						40 yrs.
Office facility in Kitzingen, Germany						—						4,812						41,125						—						( 3,171 )						4,481						38,285						42,766						2,694						1967						Mar. 2020						40 yrs.
Warehouse facility in Knoxville, TN						—						2,455						47,446						—						—						2,455						47,446						49,901						2,988						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						2,440						1981; 2014; 2021						Sep 2020; Dec. 2021						40 yrs.
Industrial facility in Huntley, IL						—						5,260						26,617						—						—						5,260						26,617						31,877						1,500						1996						Sep. 2020						40 yrs.

---

SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Winter Haven, FL; Belvedere, IL; and Fayetteville, NC						—						8,232						31,745						—						—						8,232						31,745						39,977						1,763						1954; 1984; 1997						Oct. 2020						40 yrs.
Retail facilities in Spain						—						34,216						57,151						239						( 8,069 )						31,198						52,339						83,537						2,842						Various						Oct. 2020						40 yrs.
Warehouse facility in Little Canada, MN						—						3,384						23,422						—						—						3,384						23,422						26,806						1,272						1987						Oct. 2020						40 yrs.
Warehouse facility in Hurricane, UT						—						5,154						22,893						20,517						—						5,154						43,410						48,564						1,602						2005						Dec. 2020						40 yrs.
Industrial facilities in Bethlehem, PA and Waco, TX						—						4,673						19,111						—						—						4,673						19,111						23,784						984						Various						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						1,078						Various						Dec. 2020						40 yrs.
Outdoor advertising in Fort Washington, Huntington Valley, and West Chester, PA						—						—						492						—						—						—						492						492						24						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						724						1995; 2001						Feb. 2021						40 yrs.
Office and retail facilities in NJ and PA						—						17,537						25,987						—						—						17,537						25,987						43,524						1,226						Various						Feb. 2021						40 yrs.
Land and warehouse facilities in CA						—						8,513						45,669						6						—						8,516						45,672						54,188						2,158						Various						Feb. 2021						40 yrs.
Research and development facility in Wageningen, Netherlands						—						1,429						5,777						18,848						1,244						1,494						25,804						27,298						315						2022						Mar. 2021						40 yrs.
Retail facilities in France						—						15,954						104,578						—						( 11,082 )						14,487						94,963						109,450						4,163						1968; 1981; 1983						Apr. 2021						40 yrs.
Warehouse facility in Detroit, MI						—						3,625						47,743						—						—						3,625						47,743						51,368						2,008						1991						Apr. 2021						40 yrs.
Warehouse facility in Solihull, United Kingdom						—						42,137						123,315						—						( 21,832 )						36,577						107,043						143,620						4,450						2021						May 2021						40 yrs.
Net-lease student housing facility in New Rochelle, NY						—						3,617						21,590						—						—						3,617						21,590						25,207						896						2018						May 2021						40 yrs.
Industrial facility in Groveport, OH						—						—						26,639						2,904						—						—						29,543						29,543						1,165						1982						May 2021						40 yrs.
Industrial facility in Dakota, IL						—						1,970						50,369						—						—						1,970						50,369						52,339						2,066						1978						May 2021						40 yrs.
Industrial facility in San Jose, CA						—						12,808						31,714						—						—						12,808						31,714						44,522						1,299						1984						May 2021						40 yrs.
Warehouse facility in Opelika, AL						—						2,115						39,980						—						—						2,115						39,980						42,095						1,569						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						981						1962; 1976; 1983						Jun. 2021						40 yrs.
Warehouse facility in Rome, NY						—						1,480						47,781						—						—						1,480						47,781						49,261						1,865						2021						Jun. 2021						40 yrs.
Warehouse facility in Frankfort, IN						—						5,423						95,915						—						—						5,423						95,915						101,338						3,239						2015						Aug. 2021						40 yrs.
Warehouse facility in Rogers, MN						—						1,871						20,959						—						—						1,871						20,959						22,830						688						2005						Sep. 2021						40 yrs.
Industrial facilities in Chattanooga, TN						—						4,859						29,302						—						—						4,859						29,302						34,161						881						2006; 2017						Oct. 2021						40 yrs.
Warehouse facility in Mankato, MN						—						2,979						11,619						—						—						2,979						11,619						14,598						330						1976						Nov. 2021						40 yrs.
Retail facilities in Denmark						—						2,695						38,428						—						( 2,157 )						2,553						36,413						38,966						973						Various						Dec. 2021						40 yrs.
Retail facilities in Poland						—						15,110						47,511						—						( 3,313 )						14,311						44,997						59,308						1,177						Various						Dec. 2021						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Cary, IL						—						4,568						31,977						—						—						4,568						31,977						36,545						808						1975						Dec. 2021						40 yrs.
Retail facilities in the Netherlands						—						9,342						32,770						—						( 2,373 )						8,816						30,923						39,739						779						Various						Dec. 2021						40 yrs.
Outdoor advertising in Flemington and Pennsauken, NJ						—						1,025						397						832						—						1,025						1,229						2,254						18						Various						Dec. 2021						40 yrs.
Industrial facility in Pleasant Prairie, WI						—						1,443						16,532						—						—						1,443						16,532						17,975						403						2001						Jan. 2022						40 yrs.
Funeral homes in Spain						—						26,735						99,822						—						( 6,953 )						25,266						94,338						119,604						2,145						Various						Feb. 2022						40 yrs.
Retail facilities in Denmark						—						3,295						35,898						—						( 1,477 )						3,154						34,562						37,716						625						Various						Various						40 yrs.
Industrial facility in Laval, Canada						—						4,014						16,037						—						( 1,237 )						3,766						15,048						18,814						327						1966						Feb. 2022						40 yrs.
Warehouse facility in Chattanooga, TN						—						5,063						36,645						—						—						5,063						36,645						41,708						761						2003						Mar. 2022						40 yrs.
Industrial facility in Coatzacoalcos, Mexico						—						9,805						17,622						—						—						9,805						17,622						27,427						301						1960						Apr. 2022						40 yrs.
Industrial facility in Lowbanks, CA						—						3,574						1,605						—						—						3,574						1,605						5,179						27						1967						Apr. 2022						40 yrs.
Industrial facilities in Chicago, IL; Geismar, LA; and Nashville, TN						—						9,300						26,945						—						—						9,300						26,945						36,245						437						Various						May 2022						40 yrs.
Industrial and warehouse facilities in the United States						—						9,847						88,227						—						—						9,847						88,227						98,074						1,390						Various						May 2022						40 yrs.
Retail facilities in Denmark						—						2,228						31,774						—						251						2,246						32,007						34,253						443						Various						Various						40 yrs.
Industrial facility in Medina, OH						—						2,029						22,938						—						—						2,029						22,938						24,967						311						1963						Jun. 2022						40 yrs.
Warehouse facility in Bree, Belgium						—						—						73,302						42						1,972						—						75,316						75,316						954						1964						Jun. 2022						40 yrs.
Retail facilities in Spain						—						4,906						12,825						—						813						5,131						13,413						18,544						151						Various						Jul. 2022						40 yrs.
Industrial and warehouse facilities in the United States						—						27,543						192,197						—						—						27,543						192,197						219,740						2,093						Various						Jul. 2022						40 yrs.
Retail facilities in Denmark						—						2,690						33,703						—						1,312						2,789						34,916						37,705						297						Various						Various						40 yrs.
Office facility in Austin, TX						72,295						31,095						45,393						—						—						31,095						45,393						76,488						476						1993						Aug. 2022						40 yrs.
Land in Chicago, IL						1,885						3,873						—						—						—						3,873						—						3,873						—						N/A						Aug. 2022						N/A
Retail facilities in Croatia						14,788						1,367						23,337						—						1,046						1,425						24,325						25,750						255						2001; 2006						Aug. 2022						40 yrs.
Warehouse in Streetsboro, OH						2,576						2,435						9,333						—						—						2,435						9,333						11,768						98						1993						Aug. 2022						40 yrs.
Office facility in Norcross, GA						2,936						1,795						2,676						—						—						1,795						2,676						4,471						28						1999						Aug. 2022						40 yrs.
Warehouse in University Park, IL						46,812						15,377						63,299						—						—						15,377						63,299						78,676						663						2003						Aug. 2022						40 yrs.
Office facility in Oslo, Norway						43,560						15,763						33,250						—						( 1,085 )						15,414						32,514						47,928						341						2013						Aug. 2022						40 yrs.
Industrial facilities in Surprise, AZ; Temple, GA; and Houston, TX						9,640						2,994						26,100						—						—						2,994						26,100						29,094						274						1998; 2007; 2011						Aug. 2022						40 yrs.
Office facility in Farmington Hills, MI						6,188						2,195						5,213						—						—						2,195						5,213						7,408						55						2001						Aug. 2022						40 yrs.
Warehouse facility in Jonesville, SC						25,198						2,895						32,152						—						—						2,895						32,152						35,047						337						1997						Aug. 2022						40 yrs.
Warehouse facility in Albany, GA						5,232						3,108						12,220						—						—						3,108						12,220						15,328						128						1977						Aug. 2022						40 yrs.
Office facility in Eagan, MN						8,573						1,298						7,445						—						—						1,298						7,445						8,743						78						2013						Aug. 2022						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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 Plymouth, MN						25,187						4,624						29,243						—						—						4,624						29,243						33,867						306						1982						Aug. 2022						40 yrs.
Industrial facilities in Dallas/Forth Worth, TX						4,336						3,918						9,817						—						—						3,918						9,817						13,735						103						1990; 2008						Aug. 2022						40 yrs.
Warehouse facility in Byron Center, MI						6,407						1,925						10,098						—						—						1,925						10,098						12,023						106						2015						Aug. 2022						40 yrs.
Net-lease hotel in Albion, Mauritius						10,972						7,633						29,274						—						1,562						7,956						30,513						38,469						320						2007						Aug. 2022						40 yrs.
Office facility in Warstein, Germany						—						3,917						4,049						20						337						4,083						4,240						8,323						44						2011						Aug. 2022						40 yrs.
Net-lease hotel in Munich, Germany						45,331						17,892						61,405						—						3,356						18,649						64,004						82,653						671						2016						Aug. 2022						40 yrs.
Office facility in Plano, TX						21,221						3,667						28,073						—						—						3,667						28,073						31,740						294						2001						Aug. 2022						40 yrs.
Industrial facility in Plymouth, MN						9,969						3,693						13,242						9						—						3,693						13,251						16,944						139						1975						Aug. 2022						40 yrs.
Net-lease hotel in Hamburg, Germany						15,419						7,328						17,467						—						1,050						7,639						18,206						25,845						191						2017						Aug. 2022						40 yrs.
Retail facility in Oslo, Norway						54,079						27,948						64,033						725						( 2,032 )						27,330						63,344						90,674						672						1971						Aug. 2022						40 yrs.
Office facility in Jacksonville, FL						9,310						2,084						6,673						—						—						2,084						6,673						8,757						70						2001						Aug. 2022						40 yrs.
Industrial facility in Michalovce, Slovakia						—						4,538						19,009						—						996						4,730						19,813						24,543						208						2006						Aug. 2022						40 yrs.
Office facility in Warrenville, IL						21,433						3,285						11,666						387						—						3,285						12,053						15,338						129						2001						Aug. 2022						40 yrs.
Office facility in Coralville, IA						—						2,222						35,695						—						—						2,222						35,695						37,917						374						2015						Aug. 2022						40 yrs.
Net-lease hotel in Stuttgart, Germany						13,338						—						31,276						—						1,324						—						32,600						32,600						342						1965						Aug. 2022						40 yrs.
Industrial facility in Menomonee Falls, WI						11,841						2,726						17,453						—						—						2,726						17,453						20,179						183						1974						Aug. 2022						40 yrs.
Warehouse facility in Iowa Falls, IA						6,138						997						8,819						—						—						997						8,819						9,816						92						2001						Aug. 2022						40 yrs.
Warehouse facility in Westlake, OH						—						1,928						24,353						—						—						1,928						24,353						26,281						252						1972						Aug. 2022						40 yrs.
Industrial facility in Hebron, Ohio and warehouse facility in Strongsville, OH						—						4,671						5,494						—						—						4,671						5,494						10,165						54						1969; 1999						Aug. 2022						40 yrs.
Warehouse facility in Scarsborough, Canada						—						5,092						1,868						—						—						5,092						1,868						6,960						18						1980						Aug. 2022						40 yrs.
Specialty facilities in West Des Moines, IA and Clifton Park, NY						—						3,229						17,080						—						—						3,229						17,080						20,309						166						1971; 2021						Aug. 2022						40 yrs.
Industrial facility in Orzinuovi, Italy						—						2,473						9,892						—						815						2,636						10,544						13,180						91						1978						Aug. 2022						40 yrs.
Outdoor advertising in West Chester, PA						—						—						559						—						—						—						559						559						10						2022						Oct. 2022						40 yrs.
Industrial facilities in the United States						—						11,117						41,107						—						—						11,117						41,107						52,224						31						Various						Dec. 2022						40 yrs.
Warehouse facility in Romulus, MI						—						2,788						33,353						—						—						2,788						33,353						36,141						5						2017						Dec. 2022						40 yrs.
Industrial facility in Salisbury, NC						—						1,308						13,082						—						—						1,308						13,082						14,390						2						2015						Dec. 2022						40 yrs.
						$	782,663					$	2,628,187					$	10,520,207					$	1,013,116					$	( 844,878 )					$	2,400,002					$	10,916,630					$	13,316,632					$	1,672,091

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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					$	—					$	( 4,227 )					$	23,372					1978						Jan. 1998
Retail facility in Freehold, NJ						2,925						—						17,067						—						( 435 )						16,632						2004						Sep. 2012
Office facilities in Corpus Christi, Odessa, San Marcos, and Waco, TX						713						2,089						14,211						—						( 1,572 )						14,728						1969; 1996; 2000						Sep. 2012
Retail facilities in Germany						—						28,734						145,854						5,582						( 64,558 )						115,612						Various						Sep. 2012
Warehouse facility in Brierley Hill, United Kingdom						—						2,147						12,357						—						( 2,554 )						11,950						1996						Sep. 2012
Retail facilities in El Paso and Fabens, TX						—						4,777						17,823						—						( 102 )						22,498						Various						Jan. 2014
Industrial facility in Eagan, MN						—						—						11,548						—						( 628 )						10,920						1975						Jan. 2014
Retail facility in Gronau, Germany						—						281						4,401						—						( 1,013 )						3,669						1989						Jan. 2014
Industrial facility in Mount Carmel, IL						—						135						3,265						—						( 303 )						3,097						1896						Jan. 2014
Retail facility in Vantaa, Finland						—						5,291						15,522						—						( 4,505 )						16,308						2004						Jan. 2014
Retail facility in Linköping, Sweden						—						1,484						9,402						—						( 4,105 )						6,781						2004						Jan. 2014
Industrial facility in Calgary, Canada						—						—						7,076						—						( 1,232 )						5,844						1965						Jan. 2014
Industrial facilities in Fair Bluff, NC and Valencia, PA						—						5,780						40,860						—						( 37,179 )						9,461						1968; 1976						Jan. 2014
Industrial facility in Göppingen, Germany						—						10,717						60,120						—						( 20,026 )						50,811						1930						Jan. 2014
Industrial and office facility in Nagold, Germany						—						4,553						17,675						—						( 1,419 )						20,809						1994						Oct. 2018
Warehouse facilities in Bristol, Leeds, Liverpool, Luton, Newport, Plymouth, and Southampton, United Kingdom						—						1,062						23,087						—						( 1,784 )						22,365						Various						Oct. 2018
Warehouse facility in Gieten, Netherlands						—						—						15,258						—						( 1,027 )						14,231						1985						Oct. 2018
Warehouse facility in Oxnard, CA						—						—						10,960						—						( 1,427 )						9,533						1975						Oct. 2018
Industrial facilities in Bartow, FL; Momence, IL; Smithfield, NC; Hudson, NY; and Ardmore, OK						—						4,454						87,030						—						2,921						94,405						Various						Oct. 2018
Industrial facility in Countryside, IL						—						563						1,457						—						37						2,057						1981						Oct. 2018
Industrial facility in Clarksville, TN						2,973						1,680						10,180						—						( 155 )						11,705						1998						Oct. 2018
Industrial facility in Bluffton, IN						1,634						503						3,407						—						( 44 )						3,866						1975						Oct. 2018
Warehouse facility in Houston, TX						—						—						5,977						—						( 128 )						5,849						1972						Oct. 2018
Warehouse in Chicago, IL						5,131						—						10,517						—						26						10,543						1942						Aug. 2022
Less: allowance for credit losses																														( 8,733 )						( 8,733 )
						$	13,376					$	74,250					$	572,653					$	5,582					$	( 154,172 )					$	498,313

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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
Operating Real Estate – Hotels
Bloomington, MN						$	—					$	3,810					$	29,126					$	3,622					$	6,329					$	( 314 )					$	3,874					$	31,265					$	7,434					$	42,573					$	14,303					2008						Jan. 2014						34 yrs.
Operating Real Estate – Student Housing Facilities
Austin, TX						28,533						12,994						60,006						—						44						—						12,994						60,033						17						73,044						629						2020						Aug. 2022						40 yrs.
Swansea, United Kingdom						43,134						—						32,884						—						33,936						3,526						—						70,346						—						70,346						364						2022						Aug. 2022						40 yrs.
Operating Real Estate – Self-Storage Facilities
Loves Park, IL						—						1,412						4,853						—						35						—						1,412						4,862						26						6,300						777						1997						Oct. 2018						40 yrs.
Cherry Valley, IL						—						1,339						4,160						—						9						—						1,339						4,160						9						5,508						640						1988						Oct. 2018						40 yrs.
Rockford, IL						—						695						3,873						—						44						—						695						3,903						14						4,612						545						1979						Oct. 2018						40 yrs.
Rockford, IL						—						87						785						—						—						—						87						785						—						872						98						1979						Oct. 2018						40 yrs.
Rockford, IL						—						454						4,724						—						12						—						454						4,733						3						5,190						546						1957						Oct. 2018						40 yrs.
Peoria, IL						—						444						4,944						—						238						—						444						5,164						18						5,626						849						1990						Oct. 2018						40 yrs.
East Peoria, IL						—						268						3,290						—						108						—						268						3,375						23						3,666						528						1986						Oct. 2018						40 yrs.
Loves Park, IL						—						721						2,973						—						27						—						721						3,000						—						3,721						429						1978						Oct. 2018						40 yrs.
Winder, GA						—						338						1,310						—						69						—						338						1,354						25						1,717						218						2006						Oct. 2018						40 yrs.
Winder, GA						—						821						3,180						—						34						—						821						3,198						16						4,035						486						2001						Oct. 2018						40 yrs.
Kissimmee, FL						6,386						2,147						17,164						—						4						—						2,147						17,168						—						19,315						180						2005						Aug. 2022						40 yrs.
St. Petersburg, FL						6,842						1,505						16,229						—						4						—						1,505						16,229						4						17,738						170						2007						Aug. 2022						40 yrs.
Corpus Christi, TX						2,563						904						10,779						—						40						—						904						10,819						—						11,723						114						1998						Aug. 2022						40 yrs.
Palm Desert, CA						6,481						1,036						22,714						—						—						—						1,036						22,714						—						23,750						238						2006						Aug. 2022						40 yrs.
Kailua-Kona, HI						3,546						1,425						12,267						—						30						—						1,425						12,297						—						13,722						129						1991						Aug. 2022						40 yrs.
Miami, FL						2,854						3,680						7,215						—						6						—						3,680						7,215						6						10,901						76						1986						Aug. 2022						40 yrs.
Columbia, SC						2,875						2,481						5,217						—						—						—						2,481						5,217						—						7,698						55						1988						Aug. 2022						40 yrs.
Kailua-Kona, HI						3,316						2,889						16,397						—						—						—						2,889						16,397						—						19,286						172						2004						Aug. 2022						40 yrs.
Pompano Beach, FL						2,869						1,227						10,897						—						—						—						1,227						10,897						—						12,124						114						1992						Aug. 2022						40 yrs.
Jensen Beach, FL						5,294						1,544						15,841						—						42						—						1,544						15,878						5						17,427						166						1989						Aug. 2022						40 yrs.
Dickinson, TX						6,094						1,952						8,826						—						—						—						1,952						8,826						—						10,778						92						2001						Aug. 2022						40 yrs.
Humble, TX						4,771						813						6,459						—						—						—						813						6,459						—						7,272						68						2009						Aug. 2022						40 yrs.
Temecula, CA						6,156						2,368						20,802						—						—						—						2,368						20,802						—						23,170						218						2006						Aug. 2022						40 yrs.
Cumming, GA						2,709						655						10,455						—						5						—						655						10,455						5						11,115						110						1994						Aug. 2022						40 yrs.
Naples, FL						10,157						6,826						20,254						—						18						—						6,826						20,264						8						27,098						213						1974						Aug. 2022						40 yrs.
Valrico, FL						5,694						1,423						11,316						—						8						—						1,423						11,316						8						12,747						119						2009						Aug. 2022						40 yrs.
Tallahassee, FL						4,891						1,534						14,416						—						6						—						1,534						14,416						6						15,956						151						1999						Aug. 2022						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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
Sebastian, FL						1,847						529						7,917						—						10						—						529						7,927						—						8,456						83						1986						Aug. 2022						40 yrs.
Lady Lake, FL						3,923						928						11,881						—						7						—						928						11,881						7						12,816						124						2010						Aug. 2022						40 yrs.
Panama City Beach, FL						2,605						736						7,581						—						—						—						736						7,581						—						8,317						79						1997						Aug. 2022						40 yrs.
Hesperia, CA						—						1,416						18,691						—						—						—						1,416						18,691						—						20,107						196						2004						Aug. 2022						40 yrs.
Hesperia, CA						—						639						9,412						—						—						—						639						9,412						—						10,051						99						2007						Aug. 2022						40 yrs.
Hesperia, CA						—						699						12,896						—						4						—						699						12,900						—						13,599						135						1985						Aug. 2022						40 yrs.
Highland, CA						—						1,465						11,966						—						—						—						1,465						11,966						—						13,431						125						2003						Aug. 2022						40 yrs.
Lancaster, CA						—						598						12,100						—						—						—						598						12,100						—						12,698						127						1989						Aug. 2022						40 yrs.
Rialto, CA						—						3,502						16,924						—						6						—						3,502						16,924						6						20,432						178						2007						Aug. 2022						40 yrs.
Thousand Palms, CA						—						2,465						17,632						—						—						—						2,465						17,632						—						20,097						185						2007						Aug. 2022						40 yrs.
Lilburn, GA						2,325						1,555						6,225						—						16						—						1,555						6,225						16						7,796						66						1998						Aug. 2022						40 yrs.
Stockbridge GA						1,614						308						7,238						—						43						—						308						7,268						13						7,589						77						2003						Aug. 2022						40 yrs.
Louisville, KY						6,564						3,115						13,908						—						115						—						3,115						14,020						3						17,138						151						1998						Aug. 2022						40 yrs.
St. Peters, MO						2,309						386						5,521						—						40						—						386						5,552						9						5,947						59						1991						Aug. 2022						40 yrs.
Crystal Lake, IL						2,615						1,325						6,056						—						2						—						1,325						6,056						2						7,383						64						1977						Aug. 2022						40 yrs.
Las Vegas, NV						6,328						717						20,963						—						24						—						717						20,985						2						21,704						220						1996						Aug. 2022						40 yrs.
Panama City Beach, FL						6,134						666						17,086						—						8						—						666						17,094						—						17,760						179						2008						Aug. 2022						40 yrs.
Sarasota, FL						5,204						1,076						13,597						—						7						—						1,076						13,597						7						14,680						142						2003						Aug. 2022						40 yrs.
Sarasota, FL						3,806						638						10,175						—						8						—						638						10,175						8						10,821						107						2001						Aug. 2022						40 yrs.
Leesburg, FL						2,407						1,272						5,888						—						—						—						1,272						5,888						—						7,160						62						1988						Aug. 2022						40 yrs.
Palm Bay, FL						7,156						2,814						21,425						—						21						—						2,814						21,425						21						24,260						225						2000						Aug. 2022						40 yrs.
Houston, TX						4,619						1,878						8,719						—						57						—						1,878						8,776						—						10,654						91						1971						Aug. 2022						40 yrs.
Hudson, FL						3,253						669						6,092						—						6						—						669						6,092						6						6,767						64						2008						Aug. 2022						40 yrs.
Las Vegas, NV						2,342						918						12,355						—						—						—						918						12,355						—						13,273						129						1984						Aug. 2022						40 yrs.
Las Vegas, NV						2,212						829						11,275						—						12						—						829						11,275						12						12,116						118						1987						Aug. 2022						40 yrs.
Ithaca, NY						2,297						890						4,484						—						8						—						890						4,484						8						5,382						47						1988						Aug. 2022						40 yrs.
Kissimmee, FL						—						626						13,147						—						—						—						626						13,147						—						13,773						138						2015						Aug. 2022						40 yrs.
El Paso, TX						3,704						2,126						5,628						—						—						—						2,126						5,628						—						7,754						59						1983						Aug. 2022						40 yrs.
El Paso, TX						2,542						1,053						4,583						—						3						—						1,053						4,583						3						5,639						48						1980						Aug. 2022						40 yrs.
El Paso, TX						3,612						994						7,451						—						105						—						994						7,556						—						8,550						79						1980						Aug. 2022						40 yrs.
El Paso, TX						3,628						1,295						6,318						—						36						—						1,295						6,354						—						7,649						67						1986						Aug. 2022						40 yrs.
El Paso, TX						1,428						587						3,121						—						14						—						587						3,121						14						3,722						34						1985						Aug. 2022						40 yrs.
El Paso, TX						3,718						1,143						5,894						—						92						—						1,143						5,986						—						7,129						63						1980						Aug. 2022						40 yrs.

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SCHEDULE III — REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)

December 31, 2022

(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
Fernandina Beach, FL						7,269						2,664						25,000						—						7						—						2,664						25,007						—						27,671						262						1986						Aug. 2022						40 yrs.
Kissimmee, FL						3,448						2,149						6,223						—						20						—						2,149						6,234						9						8,392						65						1981						Aug. 2022						40 yrs.
Houston, TX						2,758						1,350						6,257						—						12						—						1,350						6,257						12						7,619						66						1998						Aug. 2022						40 yrs.
Houston, TX						2,957						1,112						8,044						—						16						—						1,112						8,055						5						9,172						85						2001						Aug. 2022						40 yrs.
Portland, OR						6,348						994						10,176						—						—						—						994						10,176						—						11,170						107						2000						Aug. 2022						40 yrs.
Greensboro, NC						4,036						1,389						15,175						—						—						—						1,389						15,175						—						16,564						159						1953						Aug. 2022						40 yrs.
Avondale, LA						3,422						1,154						9,090						—						—						—						1,154						9,090						—						10,244						95						2008						Aug. 2022						40 yrs.
Washington, D.C.						6,470						3,371						13,655						—						—						—						3,371						13,655						—						17,026						143						1962						Aug. 2022						40 yrs.
Kissimmee, FL						—						1,770						7,034						—						10						—						1,770						7,034						10						8,814						74						2000						Aug. 2022						40 yrs.
Milford, MA						—						951						11,935						—						1						—						951						11,935						1						12,887						125						2003						Aug. 2022						40 yrs.
Millsboro, DE						—						1,180						14,286						—						—						—						1,180						14,286						—						15,466						150						2001						Aug. 2022						40 yrs.
New Castle, DE						4,367						1,110						15,787						—						—						—						1,110						15,787						—						16,897						165						2005						Aug. 2022						40 yrs.
Rehoboth, DE						8,215						1,565						18,284						—						10						—						1,565						18,284						10						19,859						192						1999						Aug. 2022						40 yrs.
Chicago, IL						—						787						4,931						—						67						—						787						4,971						27						5,785						53						1990						Aug. 2022						40 yrs.
Gilroy, CA						—						3,058						13,014						—						8						—						3,058						13,022						—						16,080						137						1999						Aug. 2022						40 yrs.
						$	292,647					$	122,253					$	906,396					$	3,622					$	41,843					$	3,212					$	122,317					$	947,171					$	7,838					$	1,077,326					$	28,295

__________

(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 6 ), (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 $ 3.4 billion and the related accumulated amortization of $ 1.6 billion, (ii) gross lease intangible liabilities of $ 309.9 million and the related accumulated amortization of $ 125.3 million, (iii) sale-leasebacks classified as loans receivable of $ 234.2 million, (iv) secured loans receivable of $ 39.3 million (as disclosed in Schedule IV – Mortgage Loans on Real Estate ), (v) assets held for sale, net of $ 57.9 million, and (vi) real estate under construction of $ 40.8 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 Real Estate Subject to Operating Leases
			Years Ended December 31,
			2022						2021						2020
Beginning balance			$	11,677,185					$	10,736,752					$	9,703,504
Acquisitions			997,937						1,144,757						555,032
Acquisitions through CPA:18 Merger			881,613						—						—
Foreign currency translation adjustment			( 269,272 )						( 267,018 )						290,559
Dispositions			( 165,516 )						( 80,129 )						( 167,671 )
Reclassification from real estate under construction			147,982						86,179						176,211
Reclassification from direct financing leases			67,001						76,929						183,789
Impairment charges			( 36,624 )						( 24,246 )						( 26,343 )
Capital improvements			29,419						14,589						35,722
Reclassification to assets held for sale			( 13,093 )						( 10,628 )						( 14,051 )
Ending balance			$	13,316,632					$	11,677,185					$	10,736,752

			Reconciliation of Accumulated Depreciation for Real Estate Subject to Operating Leases
			Years Ended December 31,
			2022						2021						2020
Beginning balance			$	1,448,020					$	1,206,912					$	950,452
Depreciation expense			298,972						286,347						259,337
Dispositions			( 47,463 )						( 17,582 )						( 24,786 )
Foreign currency translation adjustment			( 26,400 )						( 25,298 )						24,764
Reclassification to assets held for sale			( 1,038 )						( 2,359 )						( 2,855 )
Ending balance			$	1,672,091					$	1,448,020					$	1,206,912

			Reconciliation of Operating Real Estate
			Years Ended December 31,
			2022						2021						2020
Beginning balance			$	83,673					$	83,476					$	83,083
Acquisitions through CPA:18 Merger			922,161						—						—
Reclassification from real estate under construction			66,820						—						—
Foreign currency translation adjustment			3,526						—						—
Capital improvements			1,146						197						393
Ending balance			$	1,077,326					$	83,673					$	83,476

			Reconciliation of Accumulated Depreciation for Operating Real Estate
			Years Ended December 31,
			2022						2021						2020
Beginning balance			$	16,750					$	14,004					$	11,241
Depreciation expense			11,541						2,746						2,763
Foreign currency translation adjustment			4						—						—
Ending balance			$	28,295					$	16,750					$	14,004

At December 31, 2022, the aggregate cost of real estate that we and our consolidated subsidiaries own for federal income tax purposes was approximately $ 16.5 billion.

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SCHEDULE IV — MORTGAGE LOANS ON REAL ESTATE

December 31, 2022

(dollars in thousands)

						Interest Rate						Final Maturity Date						Carrying Amount
Description
Financing agreement — Cipriani						10.0		%				Jul. 2024						$	28,000
Financing agreement — observation wheel						7.5		%				Jun. 2023						11,250
																		$	39,250

			Reconciliation of Mortgage Loans on Real Estate
			Years Ended December 31,
			2022						2021						2020
Beginning balance			$	24,143					$	24,143					$	47,737
Repayments			( 34,000 )						—						( 11,000 )
Acquisition through CPA:18 Merger ( Note 6 )			28,000						—						—
Gain on repayment of secured loan receivable			10,613						—						—
Change in allowance for credit losses ( Note 6 )			10,494						—						( 12,594 )
Ending balance			$	39,250					$	24,143					$	24,143

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