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LOANS RECEIVABLE AND OTHER INVESTMENTS
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
LOANS RECEIVABLE AND OTHER INVESTMENTS LOANS RECEIVABLE AND OTHER INVESTMENTS
As of March 31, 2020 and December 31, 2019, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2020
 
 
Investment
 
Quantity
as of
March 31,
2020
 
Property Type
 
Principal Balance
as of
March 31,
2020 (1)
 
Book Value
as of
March 31,
2020
 
Book Value
as of
December 31, 2019
 
Weighted Average Contractual Interest Rate / Rate of Return
 
Weighted Average Annualized Effective Interest Rate / Rate of Return
 
Maturity Date
as of
March 31,
2020
Loans Receivable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage
 
1

 
Specialty Hospital
 
$
19,000

 
$
19,000

 
$
19,000

 
10.0
%
 
10.0
%
 
01/31/27
Construction
 
1

 
Senior Housing
 
2,518

 
2,537

 
2,487

 
8.0
%
 
7.8
%
 
09/30/22
Other
 
17

 
Multiple
 
46,027

 
42,081

 
42,147

 
6.8
%
 
6.9
%
 
09/01/20- 08/31/28
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19

 
 
 
67,545

 
63,618

 
63,634

 
7.7
%
 
7.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
—

 
(1,225
)
 
(564
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
67,545

 
$
62,393

 
$
63,070

 
 
 
 
 
 
Other Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
6

 
Skilled Nursing / Senior Housing
 
25,793

 
25,977

 
44,304

 
12.4
%
 
12.4
%
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
25

 
 
 
$
93,338

 
$
88,370

 
$
107,374

 
9.0
%
 
9.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1) 
Principal balance includes amounts funded and accrued but unpaid interest / preferred return and excludes capitalizable fees.
As of both March 31, 2020 and December 31, 2019, the Company had four loans receivable investments, with an aggregate principal balance of $2.3 million, that were considered to have deteriorated credit quality. As of March 31, 2020 and December 31, 2019, the book value of the outstanding loans with deteriorated credit quality was $0.7 million and $0.8 million, respectively.
The following table presents changes in the accretable yield for the three months ended March 31, 2020 and 2019 (in thousands):
 
 
Three Months Ended March 31,
 
 
2020
 
2019
Accretable yield, beginning of period
 
$
39

 
$
449

Accretion recognized in earnings
 
(8
)
 
(218
)
Reduction due to payoff
 
—

 
(33
)
Accretable yield, end of period
 
$
31

 
$
198

 
 
 
 
 

During the three months ended March 31, 2020, the Company increased its allowance for loan losses by $0.7 million.
As of March 31, 2020, the Company had a $1.2 million allowance for loan losses. As of March 31, 2020, the Company did not consider any loans receivable investments to be impaired. As of March 31, 2020, two loans receivable investments with no book value were on nonaccrual status. As of March 31, 2020, 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, 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 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.