LOANS RECEIVABLE AND INVESTMENTS

9 Months Ended

Sep. 30, 2020

Loans Receivable And Investments [Abstract]

NOTE 5—LOANS RECEIVABLE AND INVESTMENTS

As of September 30, 2020 and December 31, 2019, we had $892.5 million and $1.0 billion, respectively, of net loans receivable and investments relating to senior 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, 2020:
Secured/mortgage loans and other, net	$	555,483	$	555,483	$	487,373	$	—
Government-sponsored pooled loan investments, net (1) (3)	48,969		54,361		48,969		3,453
Total investments reported as secured loans receivable and investments, net	604,452		609,844		536,342		3,453
Non-mortgage loans receivable, net (3)	56,844		86,347		56,832		—
Marketable debt securities (2)	231,168		213,264		231,168		17,905
Total loans receivable and investments, net	$	892,464	$	909,455	$	824,342	$	21,358

As of December 31, 2019:
Secured/mortgage loans and other, net	$	645,546	$	645,546	$	646,925	$	—
Government-sponsored pooled loan investments, net (1)	59,066		52,178		59,066		6,888
Total investments reported as secured loans receivable and investments, net	704,612		697,724		705,991		6,888
Non-mortgage loans receivable, net	63,724		63,724		63,538		—
Marketable debt securities (2)	237,360		213,062		237,360		24,298
Total loans receivable and investments, net	$	1,005,696	$	974,510	$	1,006,889	$	31,186

(1)Investments in government-sponsored pool loans have contractual maturity dates in 2021 and 2023.

(2)Investments in marketable debt securities have contractual maturity dates in 2024 and 2026.

(3)As of September 30, 2020, the carrying amounts for government-sponsored pooled loan investments, net and non-mortgage loans receivable, net reflect allowances of $8.8 million and $29.5 million, respectively.

2020 Activity

During the nine months ended September 30, 2020, we received aggregate proceeds of $106.1 million for the full repayment of the principal balances of various loans receivable with a weighted average interest rate of 8.3% that were due to mature between 2020 and 2025, resulting in total gains of $1.4 million.

In April 2020, we received as consideration $66 million of notes secured by equity pledges on real estate assets with an effective interest rate of 9.2% in connection with the termination of the Holiday Lease. See “Note 3 - Concentration Of Credit Risk”.

We recognized $5.0 million and $34.7 million in expense in establishing allowances on our loan and investment portfolio for the three and nine months ended September 30, 2020, respectively. See “Note 1 - Description Of Business - COVID-19 Update”.

In July 2020, we entered into a $45 million Note from Brookdale Senior Living in connection with certain revised Agreements, which is included above in Non-mortgage loans receivable, net. The Note has an initial interest rate of 9.0%, increasing 50 basis points per annum, and matures on December 31, 2025. In addition, Brookdale transferred fee ownership of five senior living communities to us, in full satisfaction and repayment of a $78 million loan to Brookdale Senior Living from us that was secured by the five communities. See “Note 3 - Concentration Of Credit Risk”.