Loan Receivables

9 Months Ended

Sep. 30, 2014

Loan Receivables

4. Loan Receivables

The following summarizes the Company’s loan receivables, net activity during the nine months ended September 30, 2014 (in thousands):

	September 30, 2014
	Mortgage Loans			Capital Improvement Loans			Working Capital Loans			Total Loans
Beginning balance, January 1, 2014	$	28,316		$	4,580		$	8,790		$	41,686
New loans issued		4,762			—			7,648			12,410
Reserve for uncollectible loans		—			—			(3,211	)		(3,211	)
Loan amortization and repayments		(5,394	)		(760	)		(1,459	)		(7,613	)
	$	27,684		$	3,820		$	11,768		$	43,272

The following summarizes the Company’s interest income on loans and financing leases for the three and nine months ended September 30, 2014 and 2013 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Mortgage loans	$	456	$	472	$	1,364	$	1,208
Capital improvement loans		66		117		267		417
Working capital loans		211		177		529		556
Direct financing lease		368		365		1,103		1,091
Total interest on loans and financing lease	$	1,101	$	1,131	$	3,263	$	3,272

The Company’s reserve on a loan-by-loan basis for uncollectible loan receivables balances at September 30, 2014 and December 31, 2013 was approximately $3.2 million and $0, respectively, and any movement in the reserve is reflected in reserve for uncollectible loan and other receivables in the consolidated statements of operations. The gross balance of loan receivables for which a reserve on a loan-by-loan basis for uncollectible loan receivables has been applied was approximately $3.2 million and $0, at September 30, 2014 and December 31, 2013, respectively.

During 2014 and 2013, the Company funded loans for mortgage loans, capital improvement purposes, and working capital purposes to various operators. All loans held by the Company accrue interest and are recorded as interest income unless the loan is deemed impaired in accordance with Company policy. The payments received from the operator cover both interest accrued as well as amortization of the principal balance due. Any payments received from the operator made outside of the normal loan amortization schedule are considered principal prepayments and reduce the outstanding loan receivables balance.