Assets representing rights to receive money on demand or at fixed or determinable dates are referred to as finance receivables. Our finance receivable portfolios consist of our Net investments in direct financing leases and Notes receivable. Operating leases are not included in finance receivables as such amounts are not recognized as an asset in the consolidated balance sheets.

During the nine months ended September 30, 2011, we entered into two domestic net lease financing transactions, one of which was with Flanders Corporation for $50.8 million and the other with Spear Precision & Packaging, Inc. for $8.0 million, including acquisition-related fees and expenses. In connection with these investments, which were deemed to be real estate asset acquisitions under current authoritative accounting guidance, we capitalized acquisition-related fees and expenses of $2.6 million.

In December 2010, we provided financing of $40.0 million to China Alliance Properties Limited, a subsidiary of Shanghai Forte Land Co., Ltd (“Forte”). The financing was provided through a collateralized loan that is guaranteed by Forte's parent company, Fosun International Limited, and has an interest rate of 11% and matures in December 2015. At September 30, 2011 and December 31, 2010, the balance of the note receivable was $40.0 million.

During the first quarter of 2011, our participation in the limited-recourse mortgage loan related to our New York Times venture was repaid in full in connection with the refinancing of this loan (Note 9). At December 31, 2010, the balance of the note receivable was $49.6 million.

In June 2011, we provided financing of $30.0 million to a developer, BPS Partners, LLC (“BPS”), in connection with the construction of a shopping center, which includes a Walgreens store, in Las Vegas, Nevada. In connection with the loan, we received an option to purchase the second floor of the Walgreens store or to exchange the $30.0 million loan for an equity interest in BPS. This loan is secured by the property and personally guaranteed by each of the principals of BPS, has an annual interest rate of 0.5% and matures in September 2013. On its maturity date, if we do not elect to exchange the loan for an equity interest in BPS, we will receive additional interest at an annual rate of 7.5% from inception through maturity as consideration for making the loan. At September 30, 2011, the balance of this note receivable was $30.0 million.

We generally seek investments in facilities that we believe are critical to the tenant's business and that we believe have a low risk of tenant defaults. At September 30, 2011 and December 31, 2010, none of the balances of our finance receivables were past due and we had not established any allowances for credit losses. Additionally, there have been no modifications of finance receivables. We evaluate the credit quality of our tenant receivables utilizing an internal 5-point credit rating scale, with 1 representing the highest credit quality and 5 representing the lowest. The credit quality evaluation of our tenant receivables was last updated in the third quarter of 2011.

A summary of our finance receivables by internal credit quality rating for the periods presented is as follows (dollars in thousands):

	Number of Tenants at		Net Investments in Direct Financing Leases at
Internal Credit Quality Indicator	September 30, 2011	December 31, 2010	September 30, 2011		December 31, 2010
1	0	0	$	-	$	-
2	4	5		119,851		100,255
3	6	2		372,437		271,734
4	0	1		-		25,017
5	0	-		-		-
			$	492,288	$	397,006

	Number of Obligors at		Notes Receivable at
Internal Credit Quality Indicator	September 30, 2011	December 31, 2010	September 30, 2011		December 31, 2010
1	1	0	$	30,000	$	-
2	1	1		40,000		40,000
3	0	1		-		49,560
4	0	0		-		-
5	0	0		-		-
			$	70,000	$	89,560

At September 30, 2011 and December 31, 2010, Other assets, net included $2.3 million and $2.2 million, respectively, of accounts receivable related to amounts billed under these direct financing leases.