Real Estate Loans Receivable

3 Months Ended

Mar. 31, 2018

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, 2017 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, 2018								March 31, 2017
				Senior								Senior
				Housing		Outpatient						Housing		Outpatient
		Triple-net		Operating		Medical		Totals		Triple-net		Operating		Medical		Totals
Advances on real estate loans receivable:
	Investments in new loans	$	1,172	$	11,806	$	2,458	$	15,436	$	7,828	$	-	$	-	$	7,828
	Draws on existing loans		12,111		-		-		12,111		17,547		-		-		17,547
	Net cash advances on real estate loans		13,283		11,806		2,458		27,547		25,375		-		-		25,375
Receipts on real estate loans receivable:
	Loan payoffs		58,557		-		-		58,557		14,474		-		60,500		74,974
	Principal payments on loans		32,174		-		-		32,174		667		-		-		667
	Sub-total		90,731		-		-		90,731		15,141		-		60,500		75,641
	Less: Non-cash activity(1)		-		-		-		-		(6,349)		-		(60,500)		(66,849)
	Net cash receipts on real estate loans		90,731		-		-		90,731		8,792		-		-		8,792
Net cash advances (receipts) on real estate loans		$	(77,448)	$	11,806	$	2,458	$	(63,184)	$	16,583	$	-	$	-	$	16,583
(1) Triple-net represents acquisitions of assets previously financed as real estate loans. Please see Note 3 for additional information. Outpatient medical represents a deed in lieu of foreclosure on a previously financed first mortgage property.

In 2016, we restructured real estate loans with Genesis HealthCare and 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. In 2017, we recorded an additional loan loss charge of $62,966,000 relating to real estate loans with Genesis HealthCare based on an estimation of expected future cash flows discounted at the effective interest rate of the loans. At March 31, 2018, the allowance for loan losses totals $68,372,000 and is deemed to be sufficient to absorb expected losses related to these loans. At March 31, 2018, 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, 2018.

		Three Months Ended
	March 31, 2018		March 31, 2017
Balance of impaired loans at end of period	$	214,896	$	317,049
Allowance for loan losses		68,372		6,196
Balance of impaired loans not reserved	$	146,524	$	310,853
Average impaired loans for the period	$	265,973	$	340,920
Interest recognized on impaired loans(1)		5,327		8,243
(1) Represents cash interest recognized in the period since loans were identified as impaired.