LOANS RECEIVABLE AND OTHER INVESTMENTS

12 Months Ended

Dec. 31, 2017

REAL ESTATE LOANS RECEIVABLE [Abstract]

LOANS RECEIVABLE AND OTHER INVESTMENTS

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of December 31, 2017 and 2016, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

											December 31, 2017
Investment	Quantity as of December 31, 2017	Property Type	Principal Balance as of December 31, 2017 (1)		Book Value as of December 31, 2017			Book Value as of December 31, 2016			Weighted Average Contractual Interest Rate / Rate of Return		Weighted Average Annualized Effective Interest Rate / Rate of Return		Maturity Date as of December 31, 2017
Loans Receivable:
Mortgage	2	Skilled Nursing / Senior Housing	$	13,366	$	12,351		$	38,262		9.9	%	11.3	%	12/31/18- 01/31/27
Construction	2	Senior Housing	2,667		2,733			842			8.0	%	7.7	%	03/31/21- 05/31/22
Mezzanine	2	Senior Housing	32,468		10,239			9,656			10.2	%	19.2	%	02/28/18- 05/25/20
Pre-development	1	Senior Housing	2,357		2,357			4,023			9.0	%	8.4	%	04/01/20
Other	15	Multiple	40,422		38,324			—			8.8	%	10.1	%	2/28/18- 04/30/27
Debtor-in-possession	—	Acute Care Hospital	—		—			813			N/A		N/A		N/A
	22		91,280		66,004			53,596			9.4	%	11.6	%
Loan loss reserve			—		(97		)	(2,750		)
			$	91,280	$	65,907		$	50,846
Other Investments:
Preferred Equity	12	Skilled Nursing / Senior Housing	48,035		48,483			45,190			12.6	%	12.6	%	N/A
Total	34		$	139,315	$	114,390		$	96,036		10.5	%	12.0	%

⁽¹⁾  Principal balance includes amounts funded and accrued but unpaid interest/preferred return and excludes capitalizable fees.

In connection with the CCP Merger, the Company acquired 18 loans receivable investments with a principal balance of $83.3 million and fair value of $58.2 million as of August 17, 2017. Of these loans, eight loans receivable investments with a principal balance of $36.3 million were considered to have deteriorated credit quality, and based on the collateral or expected cash flows, the fair value was determined to be $11.3 million as of August 17, 2017. The accretable yield was $2.9 million and $2.7 million as of August 17, 2017 and December 31, 2017, respectively. The decrease was due to $0.2 million of accretion recorded in interest and other income during the year ended December 31, 2017. As of December 31, 2017, the book value of these loans was $10.0 million.

During the year ended December 31, 2017, the Company recorded a provision for loan losses of $4.8 million related to two loans receivable investments, both of which were repaid as of December 31, 2017, and reduced its portfolio-based loan loss reserve by $0.3 million. As of December 31, 2017, the Company had no specific loan loss reserve and had a $0.1 million portfolio-based loan loss reserve. As of December 31, 2017, the Company did not consider any loans receivable investments to be impaired, and one loan receivable with a book value of $0 was on nonaccrual status.

During the year ended December 31, 2016, the Company recorded a provision for loan losses of $3.1 million related to four loans receivable investments during the year ended December 31, 2016, one of which was partially repaid prior to December 31, 2016 through the foreclosure of the real estate asset, and reduced its portfolio-based loan loss reserve by $1.3 million during the year ended December 31, 2016. The Company’s specific loan loss reserve was $2.3 million and the portfolio-based loan loss reserve was $0.4 million as of December 31, 2016. As of December 31, 2016, the Company considered three loans receivable investments with an aggregate principal balance of $17.4 million to be impaired.