Real Estate Loans Receivable

9 Months Ended

Sep. 30, 2017

Real Estate Loans Receivable [Abstract]

Real Estate Loans Receivable

6. 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):

		Nine Months Ended
		September 30, 2017						September 30, 2016
				Outpatient						Outpatient
		Triple-net		Medical		Totals		Triple-net		Medical		Totals
Advances on real estate loans receivable:
	Investments in new loans	$	11,315	$	-	$	11,315	$	8,223	$	-	$	8,223
	Draws on existing loans		58,736		-		58,736		94,622		2,651		97,273
	Net cash advances on real estate loans		70,051		-		70,051		102,845		2,651		105,496
Receipts on real estate loans receivable:
	Loan payoffs		142,392		60,500		202,892		251,293		27,303		278,596
	Principal payments on loans		1,121		-		1,121		6,553		-		6,553
	Sub-total		143,513		60,500		204,013		257,846		27,303		285,149
	Less: Non-cash activity(1)(2)		(61,250)		(60,500)		(121,750)		(45,044)		(15,013)		(60,057)
	Net cash receipts on real estate loans		82,263		-		82,263		212,802		12,290		225,092
Net cash advances (receipts) on real estate loans			(12,212)		-		(12,212)		(109,957)		(9,639)		(119,596)
Change in balance due to foreign currency translation			8,183		-		8,183		(9,819)		-		(9,819)
Net change in real estate loans receivable		$	(65,279)	$	(60,500)	$	(125,779)	$	(164,820)	$	(24,652)	$	(189,472)
(1) Triple-net and prior year outpatient medical represents acquisitions of assets previously financed as real estate loans.
(2) Current year 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 September 30, 2017, the allowance for loan losses related to these loans is $5,406,000. At September 30, 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 September 30, 2017.

		Nine Months Ended
	September 30, 2017		September 30, 2016
Balance of impaired loans at end of period	$	282,929	$	-
Allowance for loan losses		5,406		-
Balance of impaired loans not reserved	$	277,523	$	-
Average impaired loans for the period	$	324,255	$	-
Interest recognized on impaired loans		23,957		-