LOANS RECEIVABLE AND OTHER INVESTMENTS

6 Months Ended

Jun. 30, 2015

Loans Receivable and Other Investments [Abstract]

LOANS RECEIVABLE AND OTHER INVESTMENTS

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of June 30, 2015 and December 31, 2014, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

Investment	Quantity	Facility Type	Principal Balance as of June 30, 2015		Book Value as of June 30, 2015		Book Value as of December 31, 2014		Weighted Average Contractual Interest Rate / Rate of Return		Weighted Average Annualized Effective Interest Rate / Rate of Return		Maturity Date
Loans Receivable:
Mortgage	6	Skilled Nursing / Senior Housing / Acute Care Hospital	$	161,934	$	162,258	$	144,383	8.4	%	8.2	%	10/13/15 - 4/30/18
Construction	3	Acute Care Hospital / Senior Housing	70,910		71,170		65,525		7.7	%	7.6	%	9/30/16 - 10/31/18
Mezzanine	2	Skilled Nursing / Senior Housing	19,819		19,867		21,491		11.3	%	11.1	%	9/30/15 - 8/31/17
Pre-development	3	Senior Housing	2,454		2,541		3,777		9.0	%	7.5	%	1/28/17 - 9/09/17
	14		255,117		255,836		235,176		8.4	%	8.3	%
Other Investments:
Preferred Equity	8	Skilled Nursing / Senior Housing	22,332		22,671		16,407		13.0	%	13.0	%	N/A
Total	22		$	277,449	$	278,507	$	251,583	8.8	%	8.7	%

On a quarterly basis, the Company reviews credit quality indicators of its loans receivable and other investments such as payment status, changes affecting the underlying real estate collateral (for collateral dependent loans), changes affecting the operations of the facilities securing the loans, and national and regional economic factors. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement resulting from the borrower’s failure to repay contractual amounts due, the granting of a concession by the Company or the Company’s expectation that it will receive assets with fair values less than the carrying value of the loan in satisfaction of the loan. 

As of June 30, 2015, the deferred interest under the Forest Park - Dallas (“Dallas”) mortgage loan totaled $1.9 million. Under the terms of the amended loan agreement entered into in February 2015, the borrower under the Dallas mortgage loan (“Dallas Borrower”) is required to pay all rents received from the Dallas hospital tenant toward its interest obligations to the Company. Contractual rents due under the lease agreement are sufficient to fully repay the remaining deferred amounts by mid-2016 and future contractual rent payments due under the lease agreement are adequate to allow the Dallas Borrower to timely service its debt obligations to the Company in the future.  In addition, the Company's $110.0 million investment in the Dallas mortgage loan is less than the estimated fair value of the real estate collateral, based on a third party appraisal of the real estate.

As of June 30, 2015, based on the Company's assessment, the Company’s loan investments were performing under the terms of the respective agreements and none were considered to be impaired.