Real Estate Loans Receivable

3 Months Ended

Mar. 31, 2017

Real Estate Loans Receivable [Abstract]

Real Estate Loans Receivable

Please see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 for discussion of our accounting policies for real estate loans receivable and related interest income.

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

		Three Months Ended
		March 31, 2017						March 31, 2016
				Outpatient						Outpatient
		Triple-net		Medical		Totals		Triple-net		Medical		Totals
Advances on real estate loans receivable:
	Investments in new loans	$	7,828	$	-	$	7,828	$	8,013	$	-	$	8,013
	Draws on existing loans		17,547		-		17,547		19,206		32		19,238
	Net cash advances on real estate loans		25,375		-		25,375		27,219		32		27,251
Receipts on real estate loans receivable:
	Loan payoffs		14,474		60,500		74,974		104,068		12,290		116,358
	Principal payments on loans		667		-		667		3,107		-		3,107
	Sub-total		15,141		60,500		75,641		107,175		12,290		119,465
	Less: Non-cash activity(1)(2)		(6,349)		(60,500)		(66,849)		(25,691)		-		(25,691)
	Net cash receipts on real estate loans		8,792		-		8,792		81,484		12,290		93,774
Net cash advances (receipts) on real estate loans			16,583		-		16,583		(54,265)		(12,258)		(66,523)
Change in balance due to foreign currency translation			1,718		-		1,718		(1,987)		-		(1,987)
Net change in real estate loans receivable		$	11,952	$	(60,500)	$	(48,548)	$	(81,943)	$	(12,258)	$	(94,201)
(1) Triple-net represents acquisitions of assets previously financed as real estate loans. Please see Note 3 for additional information.
(2) Outpatient medical represents a deed in lieu of foreclosure on a previously financed first mortgage property.

In 2016, we restructured two existing real estate loans in the triple-net segment with 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. In 2016, 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 and, due to the passage of time, at March 31, 2017, the allowance for loan losses related to these loans is $6,196,000. At March 31, 2017, we had no real estate loans with outstanding balances on non-accrual status and recorded no provision for loan losses during the three months ended March 31, 2017.

		Three Months Ended
	March 31, 2017		March 31, 2016
Balance of impaired loans at end of period	$	317,049	$	-
Allowance for loan losses		6,196		-
Balance of impaired loans not reserved	$	310,853	$	-
Average impaired loans for the period	$	340,920	$	-
Interest recognized on impaired loans(1)		8,243		-
(1) Represents interest recognized in period since loans were identified as impaired.