Investments
 9 Months Ended
Sep. 30, 2017
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments
Investments
Real Estate Investments

As of September 30, 2017, the Company's gross investment in real estate properties and loans totaled approximately $8.0 billion, representing investments in 2,511 properties, including 88 properties or other related assets securing mortgage loans. The gross investment is comprised of land, buildings, lease intangible assets and lease intangible liabilities, as adjusted for any impairment, and the carrying amount of loans receivable, real estate assets held under direct financing leases and real estate assets held for sale. The portfolio is geographically dispersed throughout 49 states with only one state, Texas, with a real estate investment of 12.2%, accounting for more than 10% of the total dollar amount of the Company’s real estate investment portfolio.
During the nine months ended September 30, 2017, the Company had the following real estate and loan activity, net of accumulated depreciation and amortization:
 
Number of Properties
 
Dollar Amount of Investments
 
Owned
 
Financed
 
Total
 
Owned
 
Financed
 
Total
 
 
 
 
 
 
 
(In Thousands)
Gross balance, December 31, 2016
2,541

 
74

 
2,615

 
$
8,181,076

 
$
66,578

 
$
8,247,654

Acquisitions/improvements (1)
43

 
15

 
58

 
314,141

 
19,190

 
333,331

Dispositions of real estate (2)
(161
)
 
—

 
(161
)
 
(392,504
)
 
—

 
(392,504
)
Principal payments and payoffs
—

 
(1
)
 
(1
)
 
—

 
(7,817
)
 
(7,817
)
Impairments
—

 
—

 
—

 
(88,109
)
 
—

 
(88,109
)
Write-off of gross lease intangibles
—

 
—

 
—

 
(64,766
)
 
—

 
(64,766
)
Loan premium amortization and other
—

 
—

 
—

 
(4,847
)
 
(1,130
)
 
(5,977
)
Gross balance, September 30, 2017
2,423

 
88

 
2,511

 
7,944,991

 
76,821

 
8,021,812

Accumulated depreciation and amortization
 
 
 
 
 
 
(1,234,978
)
 
—

 
(1,234,978
)
Other
 
 
 
 
 
 
647

 
—

 
647

Net balance, September 30, 2017
 
 
 
 
 
 
$
6,710,660

 
$
76,821

 
$
6,787,481


(1) Includes investments of $33.8 million in revenue producing capitalized expenditures, as well as $1.2 million of non-revenue producing capitalized expenditures as of September 30, 2017.
(2) The total accumulated depreciation and amortization associated with dispositions of real estate was $42.0 million as of September 30, 2017.
Scheduled minimum future contractual rent to be received under the remaining non-cancelable term of the operating leases (including realized rent increases occurring after October 1, 2017) at September 30, 2017 (in thousands):
 
September 30,
2017
Remainder of 2017
$
151,042

2018
597,808

2019
583,233

2020
566,864

2021
538,273

Thereafter
4,084,670

Total future minimum rentals
$
6,521,890


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 or other stipulated reference rate.

Loans Receivable
The following table details loans receivable, net of premium and allowance for loan losses (in thousands):
 
September 30,
2017
 
December 31,
2016
Mortgage loans - principal
$
62,833

 
$
55,410

Mortgage loans - premium, net of amortization
5,568

 
7,194

Mortgages loans, net
68,401

 
62,604

Other note receivables - principal
8,420

 
4,474

Allowance for loan losses
—

 
(500
)
Other note receivables, net
8,420

 
3,974

Total loans receivable, net
$
76,821

 
$
66,578


The mortgage loans are secured by single-tenant commercial properties and generally have fixed interest rates over the term of the loans. There are four other notes receivable included within loans receivable, of which two notes totaling $6.5 million are secured by tenant assets and stock and the remaining two notes are unsecured.
Lease Intangibles, Net
The following table details lease intangible assets and liabilities, net of accumulated amortization (in thousands):
 
September 30,
2017
 
December 31,
2016
In-place leases
$
599,905

 
$
624,723

Above-market leases
91,274

 
88,873

Less: accumulated amortization
(261,322
)
 
(243,320
)
Intangible lease assets, net
$
429,857

 
$
470,276

 
 
 
 
Below-market leases
$
222,078

 
$
236,008

Less: accumulated amortization
(59,459
)
 
(53,688
)
Intangible lease liabilities, net
$
162,619

 
$
182,320


The amounts amortized as a net increase to rental revenue for capitalized above- and below-market leases were $4.9 million and $4.7 million for the nine months ended September 30, 2017 and 2016, respectively and $1.5 million and $1.8 million for the three months ended September 30, 2017 and 2016, respectively. The value of in-place leases amortized and included in depreciation and amortization expense was $33.0 million and $35.1 million for the nine months ended September 30, 2017 and 2016, respectively, and $10.8 million and $11.6 million for the three months ended September 30, 2017 and 2016, respectively.
Real Estate Assets Under Direct Financing Leases
The components of real estate investments held under direct financing leases were as follows (in thousands):
 
September 30,
2017
 
December 31,
2016
Minimum lease payments receivable
$
7,809

 
$
9,456

Estimated residual value of leased assets
24,552

 
35,640

Unearned income
(7,478
)
 
(9,091
)
Real estate assets under direct financing leases, net
$
24,883

 
$
36,005


Real Estate Assets Held for Sale
The following table shows the activity in real estate assets held for sale for the nine months ended September 30, 2017 (dollars in thousands):
 
Number of Properties
 
Carrying
Value
Balance, December 31, 2016
44

 
$
160,570

Transfers from real estate investments held and used
80

 
212,726

Sales
(78
)
 
(157,156
)
Transfers to real estate investments held and used
(8
)
 
(63,597
)
Impairments
 
 
(19,161
)
Balance, September 30, 2017
38

 
$
133,382


Impairments

The following table summarizes total impairment losses recognized on the accompanying consolidated statements of operations (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended 
 September 30,
 
2017
 
2016
 
2017
 
2016
Real estate and intangible asset impairment
$
32,676

 
$
13,894

 
$
82,553

 
$
35,236

Write-off of lease intangibles, net
5,061

 
1,491

 
5,556

 
6,463

Loans receivable recovery
—

 
—

 
—

 
(324
)
Total impairments from real estate investment net assets
37,737

 
15,385

 
88,109

 
41,375

Other impairment
—

 
22

 
—

 
21

Total impairment loss
$
37,737

 
$
15,407

 
$
88,109

 
$
41,396



Impairments for the nine months ended September 30, 2017 were comprised of $22.6 million on properties classified as held for sale and $65.5 million on properties classified as held and used. Impairments for the nine months ended September 30, 2016 were comprised of $15.3 million on properties classified as held for sale and $26.1 million on properties classified as held and used.