Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Variable Interest Entities [Abstract]

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2019 was as follows (in thousands):



VIE Type	Asset/Liability Type	Maximum Loss Exposure and Carrying Amount⁽¹⁾
VIE tenants - DFLs⁽²⁾	Net investment in DFLs	$	251,438
VIE tenants - operating leases⁽²⁾	Lease intangibles, net and straight-line rent receivables	7,446
CCRC OpCo	Investments in unconsolidated joint ventures	171,915
Unconsolidated development joint ventures	Loans receivable, net and Investments in unconsolidated joint ventures	18,715
Loan - seller financing	Loans receivable, net	10,000
CMBS and LLC investment	Marketable debt and LLC investment	34,537

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(1)	The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).

(2)

The Company’s maximum loss exposure may be mitigated by re-leasing the underlying properties to new tenants upon an event of default.

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets and total liabilities include VIE assets and liabilities as follows (in thousands):



	June 30, 2019			December 31, 2018
Assets
Buildings and improvements	$	2,454,366		$	1,949,582
Development costs and construction in progress	49,101			39,584
Land	267,288			151,746
Accumulated depreciation and amortization	(416,738		)	(398,143		)
Net real estate	2,354,017			1,742,769
Investments in and advances to unconsolidated joint ventures	—			1,550
Accounts receivable, net	5,329			7,904
Cash and cash equivalents	55,574			23,772
Restricted cash	4,349			3,399
Intangible assets, net	137,749			111,333
Right-of-use asset, net	93,363			—
Other assets, net	43,610			43,149
Total assets	$	2,693,991		$	1,933,876
Liabilities
Mortgage debt	98,064			44,598
Intangible liabilities, net	16,162			19,128
Lease liability	90,266			—
Accounts payable and accrued liabilities	57,310			66,736
Deferred revenue	24,119			24,215
Total liabilities	$	285,921		$	154,677

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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