LOANS RECEIVABLE

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

LOANS RECEIVABLE

LOANS RECEIVABLE AND INVESTMENTS

As of September 30, 2013 and December 31, 2012, we had $439.1 million and $697.1 million, respectively, of net loans receivable and investments relating to seniors housing and healthcare operators or properties.

During the nine months ended September 30, 2013, we received aggregate proceeds of $78.6 million in final repayment of six secured loans receivable and one unsecured loan receivable and recognized a gain of $3.6 million.

In May 2013, we acquired an interest in a government-sponsored pooled loan investment that matures in 2023 for $21.0 million. The investment is a marketable debt security classified as available-for-sale and included within secured loans receivable and investments, net on our Consolidated Balance Sheets. As of September 30, 2013, the investment had an amortized cost basis and fair value of $21.4 million and $21.2 million, respectively.

In December 2012, we made a secured loan in the aggregate principal amount of $375.0 million, bearing interest at a fixed rate of 8.0% per annum and maturing in 2017, and in March 2013, we sold a pari passu portion of the loan receivable to a third party, at par. In July 2013, we sold a senior secured portion of our interest in the loan, which will accrue interest at a fixed rate of 4.5% per annum, to an institutional holder, at par, for $66.4 million. After these transactions, our remaining interest in the loan totals $183 million principal amount and bears interest at a fixed rate of 9.4% per annum.

Also in December 2012, we made a secured loan in the aggregate principal amount of $50.0 million, bearing interest at a fixed rate of 12.0% per annum and maturing in 2017, and in May 2013, we sold a $25.0 million pari passu portion of the loan receivable to a third party, at par.

Under the terms of each secured loan agreement described above, we act as the administrative agent for the loan and will continue to receive the stated interest rate on our remaining loan receivable balance. No gain or loss was recognized from the sales of a portion of our interests in the loans receivable.