Net Investment in Direct Financing Leases (Tables)

3 Months Ended

Mar. 31, 2016

Loans Receivable:

Schedule of components of net investment in DFLs (dollars in thousands)

Net investment in direct financing leases (“DFLs”) consisted of the following (dollars in thousands):

	March 31,		December 31,
	2016		2015
Minimum lease payments receivable	$	26,044,849	$	26,283,392
Estimated residual values		3,930,300		3,900,679
Less unearned income		(23,300,899)		(23,462,022)
Net investment in direct financing leases before allowance		6,674,250		6,722,049
Allowance for DFL losses		(817,040)		(817,040)
Net investment in direct financing leases	$	5,857,210	$	5,905,009
Properties subject to direct financing leases		340		348

Direct Financing Leases

Loans Receivable:

Summary of the Company's internal ratings for DFLs (dollars in thousands)

The following table summarizes the Company’s internal ratings for DFLs at March 31, 2016 (dollars in thousands):

	Carrying		Percentage of	Internal Ratings
Segment	Amount		DFL Portfolio	Performing DFLs		Watch List DFLs		Workout DFLs
Senior housing	$	1,794,409	31	$	261,765	$	1,532,644	$	—
Post-acute/skilled nursing		3,938,910	67		—		3,938,910		—
Hospital		123,891	2		123,891		—		—
	$	5,857,210	100	$	385,656	$	5,471,554	$	—