XML 44 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
LOANS RECEIVABLE AND OTHER INVESTMENTS
 12 Months Ended
Dec. 31, 2019
REAL ESTATE LOANS RECEIVABLE [Abstract]  
LOANS RECEIVABLE AND OTHER INVESTMENTS
LOANS RECEIVABLE AND OTHER INVESTMENTS
As of December 31, 2019 and 2018, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
Investment
 
Quantity
as of
December 31, 2019
 
Property Type
 
Principal Balance as of December 31, 2019 (1)
 
Book Value
as of
December 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
December 31, 2019
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
 
1

 
Specialty Hospital
 
$
19,000

 
$
19,000

 
$
18,577

 
10.0
%
 
10.0
%
 
01/31/27
Construction
 
1

 
Senior Housing
 
2,468

 
2,487

 
4,629

 
8.0
%
 
7.8
%
 
09/30/22
Mezzanine
 
—

 
Skilled Nursing
 
—

 
—

 
2,188

 
N/A

 
N/A

 
N/A
Other
 
16

 
Multiple
 
46,059

 
42,147

 
45,324

 
6.8
%
 
7.0
%
 
09/23/19- 08/31/28
 
 
18

 
 
 
67,527

 
63,634

 
70,718

 
7.8
%
 
7.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan loss reserve
 
 
 
 
 
—

 
(564
)
 
(1,258
)
 
 
 
 
 
 
 
 
 
 
 
 
$
67,527

 
$
63,070

 
$
69,460

 
 
 
 
 
 
Other Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
9

 
Skilled Nursing / Senior Housing
 
43,893

 
44,304

 
44,262

 
12.0
%
 
12.0
%
 
N/A
Total
 
27

 
 
 
$
111,420

 
$
107,374

 
$
113,722

 
9.4
%
 
9.6
%
 
 

(1) 
Principal balance includes amounts funded and accrued but unpaid interest / preferred return and excludes capitalizable fees.
As of December 31, 2019 and 2018, the Company had four and seven loans receivable investments, respectively, with an aggregate principal balance of $2.3 million and $27.7 million, respectively, that were considered to have deteriorated credit quality. As of December 31, 2019 and 2018, the book value of the outstanding loans with deteriorated credit quality was $0.8 million and $4.2 million, respectively. During the year ended December 31, 2019, three loans with deteriorated credit quality were repaid.
The following table presents changes in the accretable yield for the years ended December 31, 2019 and 2018 (in thousands):
 
 
Year Ended December 31,
 
 
2019
 
2018
Accretable yield, beginning of period
 
$
449

 
$
2,483

Accretion recognized in earnings
 
(377
)
 
(2,761
)
Reduction due to payoff
 
(33
)
 
—

Net reclassification from nonaccretable difference
 
—

 
727

Accretable yield, end of period
 
$
39

 
$
449


During the year ended December 31, 2019, the Company recorded a $1.2 million provision for specific loan losses and increased its portfolio-based loan loss reserve by $4,000.
As of December 31, 2019, the Company had no asset-specific loan loss reserve and a $0.6 million portfolio-based loan loss reserve. As of December 31, 2019, the Company did not consider any loans receivable investments to be impaired. As of December 31, 2019, two loans receivable investments with no book value were on nonaccrual status. As of December 31, 2019, 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, 2018, the Company recorded a $0.7 million provision for asset-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 asset-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.