LOANS RECEIVABLE AND INVESTMENTS

9 Months Ended

Sep. 30, 2018

Loans Receivable And Investments [Abstract]

NOTE 5—LOANS RECEIVABLE AND INVESTMENTS

As of September 30, 2018 and December 31, 2017, we had $786.4 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 September 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 September 30, 2018:
Secured/mortgage loans and other, net	$	466,614	$	466,614	$	452,646	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	61,237		53,292		61,237		7,945
Total investments reported as Secured loans receivable and investments, net	527,851		519,906		513,883		7,945
Non-mortgage loans receivable, net	50,478		50,478		49,915		—
Senior unsecured notes ⁽²⁾	208,090		197,417		208,090		10,673
Total loans receivable and investments, net	$	786,419	$	767,801	$	771,888	$	18,618

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 senior unsecured notes have contractual maturity dates in 2026.

2018 Activity

During the nine months ended September 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 investments are classified as available for sale and are reflected on our Consolidated Balance Sheets at fair value.

There was no impact on our 9.8% equity investment in Ardent as a result of these transactions.