LOANS RECEIVABLE AND INVESTMENTS

6 Months Ended

Jun. 30, 2018

Loans Receivable And Investments [Abstract]

NOTE 5—LOANS RECEIVABLE AND INVESTMENTS

As of June 30, 2018 and December 31, 2017, we had $780.3 million and $1.4 billion, respectively, of net loans receivable and investments relating to seniors housing and healthcare operators or properties. The following is a summary of our loans receivable and investments, net as of June 30, 2018 and December 31, 2017, including amortized cost, fair value and unrealized gains or losses on available-for-sale investments:



	Carrying Amount		Amortized Cost		Fair Value		Unrealized Gain
	(In thousands)
As of June 30, 2018:
Secured/mortgage loans and other, net	$	466,632	$	466,632	$	445,194	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	59,921		52,831		59,921		7,090
Total investments reported as Secured loans receivable and investments, net	526,553		519,463		505,115		7,090
Non-mortgage loans receivable, net	49,972		49,972		49,575		—
Marketable debt securities ⁽²⁾	203,760		197,363		203,760		6,397
Total loans receivable and investments, net	$	780,285	$	766,798	$	758,450	$	13,487

As of December 31, 2017:
Secured/mortgage loans and other, net	$	1,291,694	$	1,291,694	$	1,286,322	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	54,665		53,863		54,665		802
Total investments reported as Secured loans receivable and investments, net	1,346,359		1,345,557		1,340,987		802
Non-mortgage loans receivable, net	59,857		59,857		58,849		—
Total loans receivable and investments, net	$	1,406,216	$	1,405,414	$	1,399,836	$	802

⁽¹⁾ Investments in government-sponsored pool loans have contractual maturity dates in 2023.

⁽²⁾ Investments in marketable debt securities have contractual maturity dates in 2026.

2018 Activity

During the six months ended June 30, 2018, we received $846.7 million for the full repayment of the principal balances of ten loans receivable with a weighted average interest rate of 9.1% that were due to mature between 2018 and 2033.

Included in the repayments above is $713 million that we received in June 2018 for the full repayment of the principal balance of a $700 million term loan and $13 million then outstanding on a revolving line of credit we made to a subsidiary of Ardent. We also received a $14.0 million cash pre-payment fee and accelerated recognition of the unamortized portion ($13.2 million) of a previously received cash “upfront” fee for the loans, resulting in income of $27.2 million, which is recorded in income from loans and investments in our Consolidated Statements of Income.

In June 2018, we also made a $200 million investment in senior unsecured notes issued by a subsidiary of Ardent at a price of 98.6% of par value. The notes have an effective interest rate of 10.0% and mature in 2026. These marketable debt securities are classified as available for sale and are reflected on our Consolidated Balance Sheets at fair value.

There was no impact on our 9.9% equity investment in Ardent as a result of these transactions.