Real Estate Loans Receivable

12 Months Ended

Dec. 31, 2016

Real Estate Loans Receivable [Abstract]

Real Estate Loans Receivable

6. Real Estate Loans Receivable

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

		December 31,
	2016		2015
Mortgage loans	$	485,735	$	635,492
Other real estate loans		136,893		184,000
Totals	$	622,628	$	819,492

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

		Year Ended
		December 31, 2016						December 31, 2015						December 31, 2014
				Outpatient						Outpatient						Outpatient
		Triple-net		Medical		Totals		Triple-net		Medical		Totals		Triple-net		Medical		Totals
Advances on real estate loans receivable:
	Investments in new loans	$	8,445	$	-	$	8,445	$	530,497	$	-	$	530,497	$	61,730	$	60,902	$	122,632
	Draws on existing loans		118,788		2,651		121,439		65,614		2,611		68,225		59,420		20,155		79,575
	Net cash advances on real estate loans		127,233		2,651		129,884		596,111		2,611		598,722		121,150		81,057		202,207
Receipts on real estate loans receivable:
	Loan payoffs		275,439		27,303		302,742		121,778		-		121,778		71,004		48,258		119,262
	Principal payments on loans		6,867		-		6,867		33,340		-		33,340		31,998		72		32,070
	Sub-total		282,306		27,303		309,609		155,118		-		155,118		103,002		48,330		151,332
	Less: Non-cash activity(1)		(45,044)		(15,013)		(60,057)		(23,288)		-		(23,288)		-		(45,836)		(45,836)
	Net cash receipts on real estate loans		237,262		12,290		249,552		131,830		-		131,830		103,002		2,494		105,496
Net cash advances (receipts) on real estate loans			(110,029)		(9,639)		(119,668)		464,281		2,611		466,892		18,148		78,563		96,711
Change in balance due to foreign currency translation			(14,086)		-		(14,086)		(4,281)		-		(4,281)		(2,852)		-		(2,852)
Loan impairments(2)			-		(3,053)		(3,053)		-		-		-		-		-		-
Net change in real estate loans receivable		$	(169,159)	$	(27,705)	$	(196,864)	$	436,712	$	2,611	$	439,323	$	15,296	$	32,727	$	48,023
(1) Represents an acquisition of assets previously financed as a real estate loan. Please see Note 3 for additional information.
(2) Represents a direct write down of an impaired loan receivable.

The Company restructured two existing real estate loans in the triple-net segment to Genesis Healthcare. The two existing loans, with a combined principal balance of $317,000,000, were scheduled to mature in 2017 and 2018. These loans were restructured into four separate loans effective October 1, 2016. Each loan has a five year term, a 10% interest rate and 25 basis point annual escalator. We recorded a loan loss charge in the amount of $6,935,000 on one of the loans as the present value of expected future cash flows was less than the carrying value of the loan. We expect to collect all principal amounts due under the loans.

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

		Year Ended December 31,
	2016		2015		2014
Balance at beginning of year	$	-	$	-	$	-
Provision for loan losses(1)		6,935		-		-
Change in present value		(372)		-		-
Balance at end of year	$	6,563	$	-	$	-
(1) Excludes direct write down of an impaired loan receivable.

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

		Year Ended December 31,
	2016		2015		2014
Balance of impaired loans at end of year	$	377,549	$	-	$	21,000
Allowance for loan losses		6,563		-		-
Balance of impaired loans not reserved	$	370,986	$	-	$	21,000
Average impaired loans for the year	$	188,775	$	10,500	$	10,750
Interest recognized on impaired loans(1)		8,707		-		757
(1) Represents interest recognized in period since loans were identified as impaired.