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LOANS RECEIVABLE AND OTHER INVESTMENTS
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
LOANS RECEIVABLE AND OTHER INVESTMENTS LOANS RECEIVABLE AND OTHER INVESTMENTS
As of June 30, 2019 and December 31, 2018, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2019
 
 
Investment
 
Quantity
as of
June 30,
2019
 
Property Type
 
Principal Balance
as of
June 30,
2019 (1)
 
Book Value
as of
June 30,
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
June 30,
2019
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
 
1

 
Specialty Hospital
 
$
19,000

 
$
19,000

 
$
18,577

 
10.0
%
 
10.0
%
 
01/31/27
Construction
 
2

 
Senior Housing
 
5,363

 
5,418

 
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
 
48,365

 
44,418

 
45,324

 
6.8
%
 
7.3
%
 
02/28/19- 08/31/28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20

 
 
 
72,728

 
68,836

 
70,718

 
7.7
%
 
8.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan loss reserve
 
 
 
—

 
(1,960
)
 
(1,258
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
72,728

 
$
66,876

 
$
69,460

 
 
 
 
 
 
Other Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
9

 
Skilled Nursing / Senior Housing
 
43,915

 
44,327

 
44,262

 
12.0
%
 
12.0
%
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
29

 
 
 
$
116,643

 
$
111,203

 
$
113,722

 
9.3
%
 
9.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Principal balance includes amounts funded and accrued but unpaid interest / preferred return and excludes capitalizable fees.
As of June 30, 2019 and December 31, 2018, the Company had six and seven loans receivable investments, respectively, with an aggregate principal balance of $3.1 million and $27.7 million, respectively, that were considered to have deteriorated credit quality. As of June 30, 2019 and December 31, 2018, the book value of the outstanding loans with deteriorated credit quality was $1.5 million and $4.2 million, respectively. During the six months ended June 30, 2019, one loan with deteriorated credit quality was repaid.
The following table presents changes in the accretable yield for the three and six months ended June 30, 2019 and 2018 (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Accretable yield, beginning of period
 
$
198

 
$
1,883

 
$
449

 
$
2,483

Accretion recognized in earnings
 
(86
)
 
(1,529
)
 
(304
)
 
(2,129
)
Reduction due to payoff
 
—

 
—

 
(33
)
 
—

Net reclassification from nonaccretable difference
 
—

 
727

 
—

 
727

Accretable yield, end of period
 
$
112

 
$
1,081

 
$
112

 
$
1,081

 
 
 
 
 
 
 
 
 

During the three months ended June 30, 2019, the Company recorded no provision for specific loan losses, and during the six months ended June 30, 2019, the Company recorded a $1.2 million provision for specific loan losses. During each of the three and six months ended June 30, 2019, the Company increased its portfolio-based loan loss reserve by $0.2 million.
As of June 30, 2019, the Company had a $1.3 million specific loan loss reserve and a $0.7 million portfolio-based loan loss reserve. As of June 30, 2019, the Company considered one loan receivable investment to be impaired, which had a principal balance of $4.3 million as of each of June 30, 2019 and December 31, 2018. As of June 30, 2019, three loans receivable investments with an aggregate book value of $4.3 million were on nonaccrual status. As of June 30, 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 and six months ended June 30, 2018, the Company recorded no provision for specific loan losses and increased its portfolio-based loan loss reserve by $0.2 million and $0.3 million, respectively.