LOANS RECEIVABLE AND OTHER INVESTMENTS

12 Months Ended

Dec. 31, 2018

REAL ESTATE LOANS RECEIVABLE [Abstract]

LOANS RECEIVABLE AND OTHER INVESTMENTS

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of December 31, 2018 and 2017, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

											December 31, 2018
Investment	Quantity as of December 31, 2018	Property Type	Principal Balance as of December 31, 2018 (1)		Book Value as of December 31, 2018			Book Value as of December 31, 2017			Weighted Average Contractual Interest Rate / Rate of Return		Weighted Average Annualized Effective Interest Rate / Rate of Return		Maturity Date as of December 31, 2018
Loans Receivable:
Mortgage	1	Specialty Hospital	$	18,577	$	18,577		$	12,351		10.0	%	10.0	%	01/31/27
Construction	2	Senior Housing	4,569		4,629			2,733			8.0	%	7.7	%	04/30/21- 09/30/22
Mezzanine	1	Skilled Nursing	23,952		2,188			10,239			10.0	%	41.9	%	05/25/20
Pre-development	—	Senior Housing	—		—			2,357			N/A		N/A		N/A
Other	18	Multiple	49,394		45,324			38,324			7.3	%	8.1	%	02/28/19- 08/31/28
	22		96,492		70,718			66,004			8.5	%	9.7	%
Loan loss reserve			—		(1,258		)	(97		)
			$	96,492	$	69,460		$	65,907
Other Investments:
Preferred Equity	9	Skilled Nursing / Senior Housing	43,851		44,262			48,483			12.1	%	12.1	%	N/A
Total	31		$	140,343	$	113,722		$	114,390		9.6	%	10.6	%

⁽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 the loans acquired in connection with the CCP Merger, 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 and the accretable yield was $3.5 million as of August 17, 2017. During the year ended December 31, 2018, one loan with deteriorated credit quality was repaid in full. As of December 31, 2018 and 2017, the book value of these loans was $4.2 million and $10.0 million, respectively.

The following table presents changes in the accretable yield for the years ended December 31, 2018 and 2017 (in thousands):

	Year Ended December 31,
	2018			2017
Accretable yield, beginning of period	$	2,483		$	—
Additions	—			3,481
Accretion recognized in earnings	(2,761		)	(998		)
Net reclassification from nonaccretable difference	727			—
Accretable yield, end of period	$	449		$	2,483

During the year ended December 31, 2018, the Company recorded a $0.7 million provision for specific loan losses and increased its portfolio-based loan loss reserve by $0.5 million.

As of December 31, 2018, the Company had a $0.7 million specific loan loss reserve, and the portfolio-based loan loss reserve was $0.6 million. As of December 31, 2018, the Company considered one loan receivable investment to be impaired, which had a principal balance of $1.3 million and $1.4 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, two loans receivable investments with an aggregate book value of $1.3 million were on nonaccrual status. Additionally, as of December 31, 2018, the Company recognized interest income related to one loan receivable investment, with a book value of $4.3 million, that was more than 90 days past due. As of December 31, 2018, the Company did not consider any preferred equity investments to be impaired, and no preferred equity investments were on nonaccrual status.

During the year ended December 31, 2017, the Company recorded a $4.8 million provision for specific loan losses 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 the portfolio-based loan loss reserve was $0.1 million. As of December 31, 2017, the Company did not consider any loans receivable investments to be impaired, and one loan receivable investment with a book value of $0 was on nonaccrual status.