REAL ESTATE LOAN RECEIVABLE

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

REAL ESTATE LOAN RECEIVABLE

REAL ESTATE LOAN RECEIVABLE

As of March 31, 2018 and December 31, 2017, the Company, through an indirect wholly owned subsidiary, had originated the following real estate loan receivable (dollars in thousands):

Loan Name      Location of Related Property or Collateral

Date Acquired/ Originated

Property Type

Loan Type

Outstanding Principal Balance as of March 31, 2018 (1)

Book Value as of March 31, 2018 (2)

Book Value as of December 31, 2017 (2)

Contractual Interest Rate (3)

Annualized Effective Interest Rate (3)

Maturity Date

Sheraton Charlotte Airport Hotel First Mortgage Charlotte, North Carolina

07/11/2011

Hotel

Mortgage

$

13,878

$

13,879

$

13,923

7.5%

7.6%

08/01/2018

_____________________

⁽¹⁾ Outstanding principal balance as of March 31, 2018 represents original principal balance outstanding under the loan, increased for any subsequent fundings and reduced for any principal paydowns.

⁽²⁾ Book value represents outstanding principal balance, adjusted for unamortized acquisition discounts, origination fees and direct origination and acquisition costs.

⁽³⁾ Contractual interest rate is the stated interest rate on the face of the loan. Annualized effective interest rate is calculated as the actual interest income recognized in 2018, using the interest method, annualized and divided by the average amortized cost basis of the investment during 2018. The contractual interest rate and annualized effective interest rate presented are as of March 31, 2018.

The following summarizes the activity related to the real estate loan receivable for the three months ended March 31, 2018 (in thousands):

Real estate loan receivable - December 31, 2017	$	13,923
Principal repayments received on the real estate loan receivable	(43		)
Amortization of closing costs and origination fees on the real estate loan receivable	(1		)
Real estate loan receivable - March 31, 2018	$	13,879

For the three months ended March 31, 2018 and 2017, interest income from the real estate loan receivable consisted of the following (in thousands):

	Three Months Ended March 31,
	2018			2017
Contractual interest income	$	261		$	264
Amortization of closing costs and origination fees	(1		)	(1		)
Interest income from real estate loan receivable	$	260		$	263

As of March 31, 2018 and December 31, 2017, the borrower under the Company’s real estate loan receivable was current on its debt obligations.