LOANS RECEIVABLE AND OTHER INVESTMENTS

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

LOANS RECEIVABLE AND OTHER INVESTMENTS

LOANS RECEIVABLE AND OTHER INVESTMENTS

As of March 31, 2019 and December 31, 2018, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):

											March 31, 2019
Investment	Quantity as of March 31, 2019	Property Type	Principal Balance as of March 31, 2019 (1)		Book Value as of March 31, 2019			Book Value as of December 31, 2018			Weighted Average Contractual Interest Rate / Rate of Return		Weighted Average Annualized Effective Interest Rate / Rate of Return		Maturity Date as of March 31, 2019
Loans Receivable:
Mortgage	1	Specialty Hospital	$	19,000	$	19,000		$	18,577		10.0	%	10.0	%	01/31/27
Construction	2	Senior Housing	4,887		4,945			4,629			8.0	%	7.7	%	04/30/21- 09/30/22
Mezzanine	—	Skilled Nursing	—		—			2,188			N/A		N/A		N/A
Other	17	Multiple	47,633		43,611			45,324			7.1	%	7.7	%	02/28/19- 08/31/28
	20		71,520		67,556			70,718			7.9	%	8.4	%
Loan loss reserve			—		(1,767		)	(1,258		)
			$	71,520	$	65,789		$	69,460
Other Investments:
Preferred Equity	9	Skilled Nursing / Senior Housing	43,014		43,425			44,262			12.0	%	12.0	%	N/A
Total	29		$	114,534	$	109,214		$	113,722		9.4	%	9.8	%

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

As of March 31, 2019 and December 31, 2018, the Company had six and seven loans receivable investments, respectively, with an aggregate principal balance of $3.4 million and $27.7 million, respectively, that were considered to have deteriorated credit quality. As of March 31, 2019 and December 31, 2018, the book value of the outstanding loans with deteriorated credit quality was $1.8 million and $4.2 million, respectively. During the three months ended March 31, 2019, one loan with deteriorated credit quality was repaid.

The following table presents changes in the accretable yield for the three months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended March 31,
	2019			2018
Accretable yield, beginning of period	$	449		$	2,483
Accretion recognized in earnings	(218		)	(599		)
Reduction due to payoff	(33		)	—
Accretable yield, end of period	$	198		$	1,884

During the three months ended March 31, 2019, the Company recorded a $1.2 million provision for specific loan losses and recorded a $27,000 reduction to its provision for portfolio-based loan losses.

As of March 31, 2019, the Company had a $1.2 million specific loan loss reserve and a $0.5 million portfolio-based loan loss reserve. As of March 31, 2019, the Company considered one loan receivable investment to be impaired, which had a principal balance of $4.3 million as of each of March 31, 2019 and December 31, 2018. As of March 31, 2019, three loans receivable investments with an aggregate book value of $4.3 million were on nonaccrual status. As of March 31, 2019, the Company did not consider any preferred equity investments to be impaired, and no preferred equity investments were on nonaccrual status.

As of December 31, 2018, the Company had a $0.7 million specific loan loss reserve and a $0.6 million portfolio-based loan loss reserve. As of December 31, 2018, the Company considered one loan receivable investment with a principal balance of $1.3 million to be impaired, and 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 three months ended March 31, 2018, the Company recorded no provision for specific loan losses and increased its portfolio-based loan loss reserve by $0.1 million.