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LOANS RECEIVABLE AND OTHER INVESTMENTS
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
LOANS RECEIVABLE AND OTHER INVESTMENTS LOANS RECEIVABLE AND OTHER INVESTMENTS
    As of December 31, 2021 and 2020, the Company’s loans receivable and other investments consisted of the following (dollars in thousands):
As of December 31, 2021
InvestmentQuantity
as of
December 31, 2021		Property Type
Principal Balance as of December 31, 2021 (1)
Book Value
as of
December 31, 2021		Book Value
as of
December 31, 2020		Weighted Average Contractual Interest Rate / Rate of ReturnWeighted Average Annualized Effective Interest Rate / Rate of ReturnMaturity Date
as of
December 31, 2021
Loans Receivable:
Mortgage2 Specialty Hospital$309,000 $309,000 $19,000 7.7 %7.7 %11/01/26 - 01/31/27
Construction1 Senior Housing3,343 3,347 3,352 8.0 %7.8 %09/30/22
Other15 Multiple39,816 36,028 39,005 6.8 %6.1 %01/31/22 - 08/31/28
18 352,159 348,375 61,357 7.6 %7.5 %
Allowance for loan losses— (6,344)(2,458)
$352,159 $342,031 $58,899 
Other Investments:
Preferred Equity8 Skilled Nursing / Senior Housing56,805 57,055 43,940 11.1 %11.1 %N/A
Total26 $408,964 $399,086 $102,839 8.1 %8.0 %
(1)    Principal balance includes amounts funded and accrued but unpaid interest / preferred return and excludes capitalizable fees.
On October 15, 2021, the Company funded a $290.0 million mortgage loan receivable to Recovery Centers of America Holdings, LLC (the “RCA Mortgage Loan”) secured by six inpatient addiction treatment centers with a 7.50% rate of return. The transaction provides Sabra a right of first offer to acquire the underlying facilities and includes an additional $35.0 million commitment to be funded after specific performance metrics are achieved by the portfolio and by the two additional properties currently in lease-up.
In addition, as of December 31, 2021, the Company has committed to provide up to $28.0 million of future funding related to two preferred equity investments and one loan receivable investment with a maturity date of April 2022.
As of December 31, 2021 and 2020, the Company had four loans receivable investments, with an aggregate principal balance of $1.8 million and $2.1 million, respectively, that were considered to have deteriorated credit quality. As of December 31, 2021 and 2020, the book value of the outstanding loans with deteriorated credit quality was $0.2 million and $0.5 million, respectively.
During the years ended December 31, 2021 and 2020, the Company increased its allowance for loan losses by $3.9 million and $1.9 million, respectively.
As of December 31, 2021, the Company had a $6.3 million allowance for loan losses and three loans receivable investments with no book value were on nonaccrual status. As of December 31, 2021, 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, 2020, the Company had a $2.5 million allowance for loan losses and two loans receivable investments with no book value were on nonaccrual status. As of December 31, 2020, the Company did not consider any preferred equity investments to be impaired, and no preferred equity investments were on nonaccrual status.