Investments
 12 Months Ended
Dec. 31, 2014
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments
Investments
Real Estate Investments
At December 31, 2014 and 2013, the Company’s gross investment in real estate properties and loans, including real estate assets held for sale, totaled approximately $8.04 billion and $7.24 billion, respectively. These investments are comprised of 2,509 and 2,186, respectively, owned or financed properties that are geographically dispersed throughout 49 states. Only one state, Texas, with a 12.2% investment, accounted for more than 10% of the total dollar amount of the Company’s investment portfolio. At December 31, 2014 and 2013, respectively, the Company’s gross investment portfolio was comprised of 2,364 and 2,041 owned properties. The Company also held mortgage loans receivable with aggregate carrying amounts of $109.0 million and $117.3 million secured by 145 real properties at each of December 31, 2014 and 2013. An unsecured loan receivable with a carrying amount of $0.4 million was held at each of December 31, 2014 and 2013.
During the years ended December 31, 2014 and 2013, the Company had the following gross real estate and loan activity:
 
Number of
Properties
Owned or
Financed
 

Investments (1)
 
 
 
(in thousands)
Balance, December 31, 2012
1,207

 
$
3,654,925

Acquisitions/improvements and loan originations - Non-merger
194

 
422,458

Acquisitions/improvements and loan originations - Cole/Merger
816

 
3,580,108

Dispositions of real estate (2) (3) (Note 13)
(22
)
 
(396,717
)
Principal payments and payoffs
(9
)
 
(15,254
)
Impairments
—

 
(7,233
)
Loan premium amortization and other
—

 
(2,555
)
Balance, December 31, 2013
2,186

 
7,235,732

Acquisitions/improvements (4)
361

 
973,653

Dispositions of real estate (2) (Note 13)
(38
)
 
(117,755
)
Principal payments and payoffs
—

 
(5,771
)
Impairments
—

 
(35,908
)
Write off of gross lease intangibles
—

 
(2,748
)
Loan premium amortization and other
—

 
(2,840
)
Balance, December 31, 2014
2,509

 
$
8,044,363

(1) 
The dollar amount of investments includes the gross investment in land, buildings and lease intangibles, as adjusted for any impairment, related to properties owned and the carrying amount of loans receivable and real estate assets held under direct financing leases.
(2) 
The total accumulated depreciation and amortization associated with dispositions of real estate was $17.3 million and $33.2 million for the years ended December 31, 2014 and 2013, respectively.
(3) 
The balance includes a real estate property surrendered to a lender resulting in a gain on debt extinguishment of approximately $1.0 million.
(4) 
Includes non-revenue producing capital expenditures not reflected in our gross investments disclosed elsewhere.

The properties that the Company owns are leased to tenants under long-term operating leases that typically include one or more renewal options. The leases are generally triple-net, which provides that the tenant is responsible for the payment of all property operating expenses, including property taxes, maintenance and repairs, and insurance costs. Therefore, the Company is generally not responsible for repairs or other capital expenditures related to its properties, unless the property is not subject to a lease agreement. At December 31, 2014, 37 of the Company’s properties were vacant, not subject to a lease and in the Company’s possession; eight of these properties were held for sale. At December 31, 2013, 21 properties were vacant, not subject to a lease and in the Company’s possession; six of these properties were held for sale.
Scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases (including realized rent increases occurring after January 1, 2015) are as follows (in thousands):
 
December 31,
2014
2015
$
598,921

2016
579,275

2017
564,242

2018
549,285

2019
529,080

Thereafter
4,312,351

Total future minimum rentals
$
7,133,154



Because lease renewal periods are exercisable at the option of the lessee, the preceding table presents future minimum lease payments due during the initial lease term only. In addition, the future minimum rentals do not include any contingent rentals based on a percentage of the lessees’ gross sales or lease escalations based on future changes in the CPI.

Certain of the Company’s leases contain tenant purchase options. Most of these options are at or above fair market value at the time the option is exercisable, and none of these purchase options represent bargain purchase options under GAAP.
Loans Receivable
The following table details loans receivable, net of premium, as of December 31, 2014 and 2013 (in thousands):

 
December 31,
2014
 
December 31,
2013
Mortgage - principal
$
96,594

 
$
102,315

Mortgage - premium
12,452

 
14,976

    Mortgages, net
109,046

 
117,291

Other note - principal
379

 
430

Total loans receivable, net
$
109,425

 
$
117,721


As of December 31, 2014 and 2013, the Company held a total of 79 and 80, respectively, first-priority mortgage loans (representing loans to eight and nine borrowers, respectively). These mortgage loans, which are secured by single-tenant commercial properties, generally provide for monthly payments of principal and interest and may provide for scheduled increases in interest rates over the term of the loans. The other note receivable is unsecured.
Real Estate Assets Under Direct Financing Leases
The Company's direct financing leases were acquired in the Merger. The components of investment assets held under direct financing leases as of December 31, 2014 and 2013 were as follows (in thousands):
 
December 31,
2014
 
December 31, 2013
Minimum lease payments receivable
$
15,897

 
$
19,555

Estimated residual value of leased assets
55,858

 
57,739

Unearned income
(15,191
)
 
(18,534
)
Real estate assets under direct financing leases, net
$
56,564

 
$
58,760

Real Estate Assets Held for Sale
The following table shows the activity in real estate assets held for sale for the years ended December 31, 2014 and 2013 (dollars in thousands):
 
Number of
Properties
 
Carrying
Value
Balance, December 31, 2012
7

 
$
5,898

Transfers from real estate investments
15

 
94,732

Sales (Note 13)
(11
)
 
(81,019
)
Balance, December 31, 2013
11

 
19,611

Transfers from real estate investments
36

 
155,641

Sales (Note 13)
(23
)
 
(55,340
)
Balance, December 31, 2014 (1)
24

 
$
119,912


(1) Includes 19 properties with a net carrying amount of $110.9 million in which its operating results are reported in continuing operations.
The following table is a reconciliation of the major classes of assets and liabilities from discontinued operations included in real estate assets held for sale on the accompanying consolidated balance sheets as of December 31, 2014 and 2013 (in thousands):
 
December 31,
2014
 
December 31, 2013
Assets
 
 
 
Land and improvements
$
5,351

 
$
10,003

Buildings and improvements
5,798

 
14,178

Total real estate investments
11,149

 
24,181

Less: Accumulated depreciation
(2,167
)
 
(4,819
)
Intangible lease assets, net
460

 
697

Total assets
$
9,442

 
$
20,059

 
 
 
 
Liabilities
 
 
 
Intangible lease liabilities, net
$
448

 
$
448

Total liabilities
$
448

 
$
448



Impairments
The following table summarizes total impairment losses recognized for the years ended ended December 31, 2014, 2013 and 2012 (in thousands): 
 
Years Ended December 31,
 
2014
 
2013
 
2012
Real estate and intangible asset impairment
$
40,728

 
$
6,829

 
$
10,923

Write-off of lease intangibles due to lease terminations, net
(4,820
)
 
487

 
2,809

Loans receivable (recovery) / impairment
—

 
(367
)
 
(180
)
Other impairment
528

 
—

 
—

Total impairment loss in continuing and discontinued operations
$
36,436

 
$
6,949

 
$
13,552