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Finance Receivables (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Schedule of net investments in direct financing leases
Net investments in our direct financing lease investments is summarized as follows (in thousands):
 
June 30, 2020
 
December 31, 2019
Lease payments receivable
$
53,555

 
$
55,278

Unguaranteed residual value
39,401

 
39,401

 
92,956

 
94,679

Less: unearned income
(50,796
)
 
(52,625
)
Less: allowance for credit losses (a)
(11,768
)
 
—

 
$
30,392

 
$
42,054


___________
(a)
Upon our adoption of ASU 2016-13 on January 1, 2020, we applied changes in loss reserves through a cumulative-effect adjustment to retained earnings totaling $6.9 million (Note 2). In addition, during the six months ended June 30, 2020, due to changes in expected economic conditions, we recorded an allowance for credit losses of $4.9 million, which was included in Allowance for credit losses in our condensed consolidated statements of operations.
Schedule of financing receivable credit quality indicators

A summary of our finance receivables by internal credit quality rating is as follows (dollars in thousands):
 
 
Number of Tenants/Obligors at
 
Carrying Value at
Internal Credit Quality Indicator
 
June 30, 2020
 
December 31, 2019
 
June 30, 2020
 
December 31, 2019
1 – 3
 
3
 
4
 
$
16,956

 
$
45,457

4
 
2
 
1
 
41,436

 
24,597

5
 
—
 
—
 
—

 
—

 
 
0
 
 
 
$
58,392

 
$
70,054