LOANS RECEIVABLE AND INVESTMENTS

9 Months Ended

Sep. 30, 2019

Loans Receivable And Investments [Abstract]

NOTE 6—LOANS RECEIVABLE AND INVESTMENTS

As of September 30, 2019 and December 31, 2018, we had $1.0 billion and $756.5 million, 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, 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, 2019:
Secured/mortgage loans and other, net	$	653,691	$	653,691	$	653,656	$	—
Government-sponsored pooled loan investments, net ⁽¹⁾	56,023		51,492		56,023		4,531
Total investments reported as secured loans receivable and investments, net	709,714		705,183		709,679		4,531
Non-mortgage loans receivable, net	62,852		62,852		62,952		—
Marketable debt securities ⁽²⁾	227,947		212,998		227,947		14,949
Total loans receivable and investments, net	$	1,000,513	$	981,033	$	1,000,578	$	19,480

As of December 31, 2018:
Secured/mortgage loans and other, net	$	439,491	$	439,491	$	425,290	$	—
Government-sponsored pooled loan investments, net ⁽³⁾	56,378		49,601		56,378		6,777
Total investments reported as secured loans receivable and investments, net	495,869		489,092		481,668		6,777
Non-mortgage loans receivable, net	54,164		54,164		54,081		—
Marketable debt securities ⁽⁴⁾	206,442		197,473		206,442		8,969
Total loans receivable and investments, net	$	756,475	$	740,729	$	742,191	$	15,746

⁽¹⁾ As of September 30, 2019, investments in government-sponsored pool loans have contractual maturity dates in 2021 and 2023.

⁽²⁾ As of September 30, 2019, investments in marketable debt securities have contractual maturity dates in 2024 and 2026.

⁽³⁾ As of December 31, 2018, investments in government-sponsored pool loans have contractual maturity dates in 2023.

⁽⁴⁾ As of December 31, 2018, investments in marketable debt securities have contractual maturity dates in 2026.

2019 Activity

In April 2019, we purchased $5.0 million and $10.5 million of senior secured notes issued by a healthcare company which mature in 2024 and 2026, respectively. The 2024 and 2026 notes were purchased at a price of 102% and 98% of par, respectively, and have an effective interest rate of 8.1% and 8.3%, respectively. These investments are classified as available for sale and are reflected on our Consolidated Balance Sheets at fair value.

In June 2019, we provided new secured debt financing of $490 million to certain subsidiaries of Colony Capital, Inc. The London Inter-bank Offered Rate (“LIBOR”) based debt financing has a five-year term (inclusive of three one-year extension options) and an initial effective interest rate of 9.2%. In connection with this transaction, our previous loan to certain subsidiaries of Colony Capital, Inc. of $282 million was paid in full and we recognized a gain of $0.5 million in income from loans and investments in our Consolidated Statements of Income.

In July 2019, we closed the first phase of the LGM Acquisition by funding C$947 million (US $723 million) to LGM as a bridge loan to enable LGM to buy out its former partner. The bridge loan and all outstanding interest was fully repaid in September 2019 upon the closing of the LGM Acquisition. See “NOTE 4—ACQUISITIONS OF REAL ESTATE PROPERTY.”