Real Estate Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2012

The following is a summary of our real estate loans receivable (in thousands):

The following is a summary of our real estate loan activity for the periods presented (in thousands):

		Year Ended
		December 31, 2012								December 31, 2011						December 31, 2010
		Seniors		Seniors						Seniors						Seniors
		Housing		Housing		Medical				Housing		Medical				Housing		Medical
		Triple-net		Operating⁽¹⁾		Facilities		Totals		Triple-net		Facilities		Totals		Triple-net		Facilities		Totals
Advances:
	Investments in new loans	$	2,220	$	580,834	$	38,336	$	621,390	$	18,541	$	0	$	18,541	$	9,742	$	41,644	$	51,386
	Draws on existing loans		41,754		0		1,950		43,704		29,752		3,184		32,936		46,113		1,236		47,349
	Sub-total		43,974		580,834		40,286		665,094		48,293		3,184		51,477		55,855		42,880		98,735
	Less: Seller financing on property sales		0		0		0		0		0		0		0		0		(1,470)		(1,470)
	Net cash advances on real estate loans		43,974		580,834		40,286		665,094		48,293		3,184		51,477		55,855		41,410		97,265
Receipts:
	Loan payoffs		10,387		0		2,168		12,555		162,705		2,943		165,648		5,619		6,233		11,852
	Principal payments on loans		19,786		0		2,679		22,465		17,856		5,307		23,163		24,203		7,440		31,643
	Total receipts on real estate loans		30,173		0		4,847		35,020		180,561		8,250		188,811		29,822		13,673		43,495
Net advances (receipts) on real estate loans		$	13,801	$	580,834	$	35,439	$	630,074	$	(132,268)	$	(5,066)	$	(137,334)	$	26,033	$	27,737	$	53,770


(1) Represents loan to Sunrise Senior Living, Inc. that was acquired upon merger consummation on January 9, 2013 as discussed in Note 21.

The following is a summary of the allowance for losses on loans receivable for the periods presented (in thousands):

		Year Ended December 31,
	2012⁽¹⁾		2011⁽²⁾		2010⁽³⁾
Balance at beginning of year	$	-	$	1,276	$	5,183
Provision for loan losses		27,008		2,010		29,684
Charge-offs		(27,008)		(3,286)		(33,591)
Balance at end of year	$	-	$	-	$	1,276


(1) Provision and charge-off amounts relate to one entrance fee community in our seniors housing triple-net segment.
(2) Provision and charge-off amounts relate to one hospital in our medical facilities segment.
(3) Provision and charge-off amounts relate to certain early stage seniors housing and CCRC development projects in our seniors housing triple-net segment.

The following is a summary of our loan impairments (in thousands):

		Year Ended December 31,
	2012		2011		2010
Balance of impaired loans at end of year	$	4,230	$	6,244	$	9,691
Allowance for loan losses		-		-		1,276
Balance of impaired loans not reserved	$	4,230	$	6,244	$	8,415
Average impaired loans for the year	$	5,237	$	7,968	$	38,409
Interest recognized on impaired loans⁽¹⁾		44		-		103


(1) Represents interest recognized prior to placement on non-accrual status.