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 Note receivable and Net investments in direct financing leases.

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 interest-only mortgage note 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 both September 30, 2013 and December 31, 2012, the principal balance of the note receivable was $40.0 million.

We generally seek investments in facilities that we believe are critical to each tenant's business and that we believe have a low risk of tenant defaults. At both September 30, 2013 and December 31, 2012, 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 during the nine months ended September 30, 2013. 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 2013.

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, 2013	December 31, 2012	September 30, 2013		December 31, 2012
1	1	1	$	2,247	$	2,239
2	0	2		-		60,218
3	7	8		389,402		413,415
4	3	0		86,697		-
5	0	0		-		-
			$	478,346	$	475,872

At September 30, 2013 and December 31, 2012, Other assets, net included $3.9 million and $1.0 million, respectively, of accounts receivable related to amounts billed under these direct financing leases.


	Number of Obligor at		Note Receivable at
Internal Credit Quality Indicator	September 30, 2013	December 31, 2012	September 30, 2013		December 31, 2012
1	-	-	$	-	$	-
2	-	-		-		-
3	1	1		40,000		40,000
4	-	-		-		-
5	-	-		-		-
			$	40,000	$	40,000