| Schedule of Error Corrections and Prior Period Adjustments |
The following table presents the consolidated balance sheet as previously reported, restatement adjustments and the consolidated balance sheet as restated at March 31, 2015 (in thousands, except per share data): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Assets | | | | | | Investments: | | | | | | Real estate investments: | | | | | | Land and improvements | $ | 2,666,746 |
| | $ | — |
| | $ | 2,666,746 |
| Buildings and improvements | 4,651,097 |
| | — |
| | 4,651,097 |
| Total real estate investments | 7,317,843 |
| | — |
| | 7,317,843 |
| Less: accumulated depreciation | (779,083 | ) | | — |
| | (779,083 | ) | | 6,538,760 |
| | — |
| | 6,538,760 |
| Loans receivable, net | 107,403 |
| | — |
| | 107,403 |
| Intangible lease assets, net | 573,925 |
| | — |
| | 573,925 |
| Real estate assets under direct financing leases, net | 52,852 |
| | — |
| | 52,852 |
| Real estate assets held for sale, net | 177,237 |
| | (1,443 | ) | | 175,794 |
| Net investments | 7,450,177 |
| | (1,443 | ) | | 7,448,734 |
| Cash and cash equivalents | 108,134 |
| | — |
| | 108,134 |
| Deferred costs and other assets, net | 149,789 |
| | — |
| | 149,789 |
| Goodwill | 291,421 |
| | (7,757 | ) | | 283,664 |
| Total assets | $ | 7,999,521 |
| | $ | (9,200 | ) | | $ | 7,990,321 |
| Liabilities and stockholders’ equity | | | | | | Liabilities: | | | | | | Revolving credit facilities | $ | 181,518 |
| | $ | — |
| | $ | 181,518 |
| Mortgages and notes payable, net | 3,456,609 |
| | — |
| | 3,456,609 |
| Convertible Notes, net | 681,109 |
| | — |
| | 681,109 |
| Total debt, net | 4,319,236 |
| | — |
| | 4,319,236 |
| Intangible lease liabilities, net | 204,161 |
| | — |
| | 204,161 |
| Accounts payable, accrued expenses and other liabilities | 122,973 |
| | — |
| | 122,973 |
| Total liabilities | 4,646,370 |
| | — |
| | 4,646,370 |
| Commitments and contingencies (see Note 8) |
| |
| |
| Stockholders’ equity: | | | | | | Common stock, $0.01 par value | 4,189 |
| | (5 | ) | | 4,184 |
| Capital in excess of par value | 4,443,468 |
| | — |
| | 4,443,468 |
| Accumulated deficit | (1,087,306 | ) | | (14,777 | ) | | (1,102,083 | ) | Accumulated other comprehensive loss | (1,618 | ) | | — |
| | (1,618 | ) | Treasury stock, at cost | (5,582 | ) | | 5,582 |
| | — |
| Total stockholders’ equity | 3,353,151 |
| | (9,200 | ) | | 3,343,951 |
| Total liabilities and stockholders’ equity | $ | 7,999,521 |
| | $ | (9,200 | ) | | $ | 7,990,321 |
|
The following table presents the consolidated balance sheet as previously reported, restatement adjustments and the consolidated balance sheet as restated at December 31, 2014 (in thousands, except per share data): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Assets | | | | | | Investments: | | | | | | Real estate investments: | | | | | | Land and improvements | $ | 2,614,630 |
| | $ | — |
| | $ | 2,614,630 |
| Buildings and improvements | 4,579,166 |
| | — |
| | 4,579,166 |
| Total real estate investments | 7,193,796 |
| | — |
| | 7,193,796 |
| Less: accumulated depreciation | (752,210 | ) | | — |
| | (752,210 | ) | | 6,441,586 |
| | — |
| | 6,441,586 |
| Loans receivable, net | 109,425 |
| | — |
| | 109,425 |
| Intangible lease assets, net | 590,073 |
| | — |
| | 590,073 |
| Real estate assets under direct financing leases, net | 56,564 |
| | — |
| | 56,564 |
| Real estate assets held for sale, net | 119,912 |
| | (866 | ) | | 119,046 |
| Net investments | 7,317,560 |
| | (866 | ) | | 7,316,694 |
| Cash and cash equivalents | 176,181 |
| | — |
| | 176,181 |
| Deferred costs and other assets, net | 183,173 |
| | 2,334 |
| | 185,507 |
| Goodwill | 291,421 |
| | (5,573 | ) | | 285,848 |
| Total assets | $ | 7,968,335 |
| | $ | (4,105 | ) | | $ | 7,964,230 |
| Liabilities and stockholders’ equity | | | | | | Liabilities: | | | | | | Revolving credit facilities | $ | 12,780 |
| | $ | 2,334 |
| | $ | 15,114 |
| Mortgages and notes payable, net | 3,629,998 |
| | — |
| | 3,629,998 |
| Convertible Notes, net | 678,190 |
| | — |
| | 678,190 |
| Total debt, net | 4,320,968 |
| | 2,334 |
| | 4,323,302 |
| Intangible lease liabilities, net | 205,968 |
| | — |
| | 205,968 |
| Accounts payable, accrued expenses and other liabilities | 123,298 |
| | — |
| | 123,298 |
| Total liabilities | 4,650,234 |
| | 2,334 |
| | 4,652,568 |
| Commitments and contingencies (see Note 8) |
| |
| |
| Stockholders’ equity: | | | | | | Common stock, $0.01 par value | 4,118 |
| | (5 | ) | | 4,113 |
| Capital in excess of par value | 4,361,320 |
| | — |
| | 4,361,320 |
| Accumulated deficit | (1,041,392 | ) | | (11,296 | ) | | (1,052,688 | ) | Accumulated other comprehensive loss | (1,083 | ) | | — |
| | (1,083 | ) | Treasury stock, at cost | (4,862 | ) | | 4,862 |
| | — |
| Total stockholders’ equity | 3,318,101 |
| | (6,439 | ) | | 3,311,662 |
| Total liabilities and stockholders’ equity | $ | 7,968,335 |
| | $ | (4,105 | ) | | $ | 7,964,230 |
|
The following table presents the consolidated statement of operations as previously reported, restatement adjustments and the consolidated statement of operations as restated for the three months ended March 31, 2015 (in thousands, except per share data): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Revenues: | | | | | | Rentals | $ | 154,518 |
| | $ | — |
| | $ | 154,518 |
| Interest income on loans receivable | 1,722 |
| | — |
| | 1,722 |
| Earned income from direct financing leases | 795 |
| | — |
| | 795 |
| Tenant reimbursement income | 4,631 |
| | — |
| | 4,631 |
| Interest income and other | 621 |
| | — |
| | 621 |
| Total revenues | 162,287 |
| | — |
| | 162,287 |
| Expenses: | | | | | | General and administrative | 12,600 |
| | — |
| | 12,600 |
| Property costs | 7,407 |
| | — |
| | 7,407 |
| Real estate acquisition costs | 1,093 |
| | — |
| | 1,093 |
| Interest | 57,914 |
| | — |
| | 57,914 |
| Depreciation and amortization | 66,296 |
| | — |
| | 66,296 |
| Impairments | 1,624 |
| | 576 |
| | 2,200 |
| Total expenses | 146,934 |
| | 576 |
| | 147,510 |
| Income from continuing operations before other expense and income tax expense | 15,353 |
| | (576 | ) | | 14,777 |
| Other expense: | | | | | | Loss on debt extinguishment | (1,230 | ) | | — |
| | (1,230 | ) | Total other expense | (1,230 | ) | | — |
| | (1,230 | ) | Income from continuing operations before income tax expense | 14,123 |
| | (576 | ) | | 13,547 |
| Income tax expense | (362 | ) | | — |
| | (362 | ) | Income from continuing operations | 13,761 |
| | (576 | ) | | 13,185 |
| Discontinued operations: | | | | | | Income from discontinued operations | 227 |
| | — |
| | 227 |
| Income before gain on dispositions of assets | 13,988 |
| | (576 | ) | | 13,412 |
| Gain on dispositions of assets | 11,336 |
| | (2,185 | ) | | 9,151 |
| Net income attributable to common stockholders | $ | 25,324 |
| | $ | (2,761 | ) | | $ | 22,563 |
| Net income per share of common stock—basic: | | | | | | Continuing operations | $ | 0.06 |
| | $ | (0.01 | ) | | $ | 0.05 |
| Discontinued operations | — |
| | — |
| | — |
| Net income per share attributable to common stockholders—basic: | $ | 0.06 |
| | $ | (0.01 | ) | | $ | 0.05 |
| Net income per share of common stock—diluted: | | | | | | Continuing operations | $ | 0.06 |
| | $ | (0.01 | ) | | $ | 0.05 |
| Discontinued operations | — |
| | — |
| | — |
| Net income per share attributable to common stockholders—diluted: | $ | 0.06 |
| | $ | (0.01 | ) | | $ | 0.05 |
| Weighted average common shares outstanding: | | | | | | Basic | 411,017,895 |
| | — |
| | 411,017,895 |
| Diluted | 411,622,434 |
| | — |
| | 411,622,434 |
|
The following table presents the consolidated statement of operations as previously reported, restatement adjustments and the consolidated statement of operations as restated for the three months ended March 31, 2014 (in thousands, except per share data): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Revenues: | | | | | | Rentals | $ | 137,479 |
| | | | $ | 137,479 |
| Interest income on loans receivable | 1,837 |
| | | | 1,837 |
| Earned income from direct financing leases | 846 |
| | | | 846 |
| Tenant reimbursement income | 3,319 |
| | | | 3,319 |
| Interest income and other | 491 |
| | | | 491 |
| Total revenues | 143,972 |
| | — |
| | 143,972 |
| Expenses: | | | | | | General and administrative | 11,067 |
| | | | 11,067 |
| Property costs | 5,282 |
| | | | 5,282 |
| Real estate acquisition costs | 1,281 |
| | | | 1,281 |
| Interest | 54,399 |
| | | | 54,399 |
| Depreciation and amortization | 60,549 |
| | | | 60,549 |
| Impairments | 1,707 |
| | 204 |
| | 1,911 |
| Total expenses | 134,285 |
| | 204 |
| | 134,489 |
| Income from continuing operations before income tax expense | 9,687 |
| | (204 | ) | | 9,483 |
| Income tax expense | (217 | ) | | | | (217 | ) | Income from continuing operations | 9,470 |
| | (204 | ) | | 9,266 |
| Discontinued operations: | | | | | | Income from discontinued operations | 3,054 |
| | | | 3,054 |
| Loss on dispositions of assets | (7 | ) | | | | (7 | ) | Income from discontinued operations | 3,047 |
| | — |
| | 3,047 |
| Income before gain on dispositions of assets | 12,517 |
| | (204 | ) | | 12,313 |
| Gain on dispositions of assets | 1,722 |
| | (187 | ) | | 1,535 |
| Net income attributable to common stockholders | $ | 14,239 |
| | $ | (391 | ) | | $ | 13,848 |
| Net income per share of common stock—basic: | | | | | | Continuing operations | $ | 0.03 |
| | $ | — |
| | $ | 0.03 |
| Discontinued operations | 0.01 |
| | — |
| | 0.01 |
| Net income per share attributable to common stockholders—basic: | $ | 0.04 |
| | $ | — |
| | $ | 0.04 |
| Net income per share of common stock—diluted: | | | | | | Continuing operations | $ | 0.03 |
| | $ | — |
| | $ | 0.03 |
| Discontinued operations | 0.01 |
| | — |
| | 0.01 |
| Net income per share attributable to common stockholders—diluted: | $ | 0.04 |
| | $ | — |
| | $ | 0.04 |
| Weighted average common shares outstanding: | | | | | | Basic | 368,684,942 |
| | — |
| | 368,684,942 |
| Diluted | 369,387,638 |
| | — |
| | 369,387,638 |
|
The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments and the consolidated statement of cash flows as restated for the three months ended March 31, 2015 (in thousands): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Operating activities | | | | | | Net income attributable to common stockholders | $ | 25,324 |
| | $ | (2,761 | ) | | $ | 22,563 |
| Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities: | | | | | | Depreciation and amortization | 66,296 |
| | — |
| | 66,296 |
| Impairments | 1,658 |
| | 576 |
| | 2,234 |
| Amortization of deferred financing costs | 2,072 |
| | — |
| | 2,072 |
| Derivative net settlements, amortization and other interest rate hedge losses | (28 | ) | | — |
| | (28 | ) | Amortization of debt (premiums) discounts | 476 |
| | — |
| | 476 |
| Stock-based compensation expense | 3,827 |
| | — |
| | 3,827 |
| Loss (gain) on debt extinguishment | 1,230 |
| | — |
| | 1,230 |
| Debt extinguishment costs | (2,733 | ) | | — |
| | (2,733 | ) | Gains on dispositions of real estate and other assets, net | (11,336 | ) | | 2,185 |
| | (9,151 | ) | Non-cash revenue | (4,809 | ) | | — |
| | (4,809 | ) | Other | (14 | ) | | — |
| | (14 | ) | Changes in operating assets and liabilities: | | | | | | Deferred costs and other assets, net | (1,938 | ) | | — |
| | (1,938 | ) | Accounts payable, accrued expenses and other liabilities | (420 | ) | | — |
| | (420 | ) | Net cash provided by operating activities | 79,605 |
| | — |
| | 79,605 |
| Investing activities | | | | | | Acquisitions/investments of real estate | (265,740 | ) | | — |
| | (265,740 | ) | Collections of principal on loans receivable and real estate assets under direct financing leases | 1,452 |
| | — |
| | 1,452 |
| Proceeds from dispositions of real estate and other assets | 71,547 |
| | — |
| | 71,547 |
| Transfers of net sales proceeds to restricted accounts under 1031 exchanges | (6,937 | ) | | — |
| | (6,937 | ) | Transfers of net sales proceeds from Master Trust Release | 43,412 |
| | — |
| | 43,412 |
| Net cash used in investing activities | (156,266 | ) | | — |
| | (156,266 | ) | Financing activities | | | | | | Borrowings under credit facilities | 345,000 |
| | — |
| | 345,000 |
| Repayments under credit facilities | (175,101 | ) | | — |
| | (175,101 | ) | Borrowings under Convertible Notes | — |
| | — |
| | — |
| Borrowings under mortgages and notes payable | — |
| | — |
| | — |
| Repayments under mortgages and notes payable | (167,102 | ) | | — |
| | (167,102 | ) | Deferred financing costs | (3,562 | ) | | — |
| | (3,562 | ) | Proceeds from issuance of common stock, net of offering costs | 78,552 |
| | — |
| | 78,552 |
| Proceeds from exercise of stock options | — |
| | — |
| | — |
| Purchase of shares of common stock | (720 | ) | | — |
| | (720 | ) | Dividends paid/distributions to equity owners | (70,046 | ) | | — |
| | (70,046 | ) | Transfers from escrow deposits with lenders | 1,593 |
| | — |
| | 1,593 |
| Net cash provided by financing activities | 8,614 |
| | — |
| | 8,614 |
| Net decrease in cash and cash equivalents | (68,047 | ) | | — |
| | (68,047 | ) | Cash and cash equivalents, beginning of period | 176,181 |
| | — |
| | 176,181 |
| Cash and cash equivalents, end of period | $ | 108,134 |
| | $ | — |
| | $ | 108,134 |
|
The following table presents the consolidated statement of cash flows as previously reported, restatement adjustments and the consolidated statement of cash flows as restated for the three months ended March 31, 2014 (in thousands): | | | | | | | | | | | | | | As Previously Reported | | Restatement Adjustments | | As Restated | Operating activities | | | | | | Net income attributable to common stockholders | $ | 14,239 |
| | $ | (391 | ) | | $ | 13,848 |
| Adjustments to reconcile net income attributable to common stockholders to net cash provided by operating activities: | | | | | | Depreciation and amortization | 60,549 |
| | — |
| | 60,549 |
| Impairments | 1,707 |
| | 204 |
| | 1,911 |
| Amortization of deferred financing costs | 973 |
| | — |
| | 973 |
| Derivative net settlements, amortization and other interest rate hedge losses | (26 | ) | | — |
| | (26 | ) | Amortization of debt (premiums) discounts | (929 | ) | | — |
| | (929 | ) | Stock-based compensation expense | 2,452 |
| | — |
| | 2,452 |
| Loss (gain) on debt extinguishment | — |
| | — |
| | — |
| Debt extinguishment costs | — |
| | — |
| | — |
| Gains on dispositions of real estate and other assets, net | (1,715 | ) | | 187 |
| | (1,528 | ) | Non-cash revenue | (3,962 | ) | | — |
| | (3,962 | ) | Other | 121 |
| | — |
| | 121 |
| Changes in operating assets and liabilities: | | | | | | Deferred costs and other assets, net | (1,510 | ) | | — |
| | (1,510 | ) | Accounts payable, accrued expenses and other liabilities | (6,055 | ) | | — |
| | (6,055 | ) | Net cash provided by operating activities | 65,844 |
| | — |
| | 65,844 |
| Investing activities | | | | | | Acquisitions/investments of real estate | (157,972 | ) | | — |
| | (157,972 | ) | Collections of principal on loans receivable and real estate assets under direct financing leases | 1,319 |
| | — |
| | 1,319 |
| Proceeds from dispositions of real estate and other assets | 6,243 |
| | — |
| | 6,243 |
| Transfers of net sales proceeds from restricted accounts under 1031 Exchanges | 20,784 |
| | — |
| | 20,784 |
| Transfers of net sales proceeds to Master Trust Release | (6,345 | ) | | — |
| | (6,345 | ) | Net cash used in investing activities | (135,971 | ) | | — |
| | (135,971 | ) | Financing activities | | | | | | Borrowings under credit facilities | 180,535 |
| | — |
| | 180,535 |
| Repayments under credit facilities | (80,049 | ) | | — |
| | (80,049 | ) | Borrowings under mortgages and notes payable | 10,000 |
| | — |
| | 10,000 |
| Repayments under mortgages and notes payable | (14,116 | ) | | — |
| | (14,116 | ) | Deferred financing costs | (503 | ) | | — |
| | (503 | ) | Proceeds from issuance of common stock, net of offering costs | — |
| | — |
| | — |
| Proceeds from exercise of stock options | 183 |
| | — |
| | 183 |
| Purchase of shares of common stock | (104 | ) | | — |
| | (104 | ) | Dividends paid/distributions to equity owners | (61,573 | ) | | — |
| | (61,573 | ) | Transfers to escrow deposits with lenders | (850 | ) | | — |
| | (850 | ) | Net cash provided by financing activities | 33,523 |
| | — |
| | 33,523 |
| Net decrease in cash and cash equivalents | (36,604 | ) | | — |
| | (36,604 | ) | Cash and cash equivalents, beginning of period | 66,588 |
| | — |
| | 66,588 |
| Cash and cash equivalents, end of period | $ | 29,984 |
| | $ | — |
| | $ | 29,984 |
|
|