Real Estate Loans Receivable

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Real Estate Loans Receivable

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, 2018 for discussion of our accounting policies for real estate loans receivable and related interest income. 

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

	March 31, 2019			December 31, 2018
Mortgage loans	$	326,687		$	317,443
Other real estate loans	111,459			81,268
Less allowance for losses on loans receivable	(87,062		)	(68,372		)
Totals	$	351,085		$	330,339

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

	Three Months Ended
	March 31, 2019								March 31, 2018
	Seniors Housing Operating		Triple-net		Outpatient Medical		Totals		Seniors Housing Operating		Triple-net			Outpatient Medical		Totals
Advances on real estate loans receivable:
Investments in new loans	$	25,000	$	—	$	—	$	25,000	$	11,806	$	1,172		$	2,458	$	15,436
Draws on existing loans	—		12,956		5,008		17,964		—		12,111			—		12,111
Net cash advances on real estate loans	25,000		12,956		5,008		42,964		11,806		13,283			2,458		27,547
Receipts on real estate loans receivable:
Loan payoffs	—		4,384		—		4,384		—		58,557			—		58,557
Principal payments on loans	—		1,965		—		1,965		—		32,174			—		32,174
Net cash receipts on real estate loans	—		6,349		—		6,349		—		90,731			—		90,731
Net cash advances (receipts) on real estate loans	$	25,000	$	6,607	$	5,008	$	36,615	$	11,806	$	(77,448	)	$	2,458	$	(63,184	)

 

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. In March 2019, we recognized a provision for loan losses of $18,690,000 to fully reserve for certain Triple-net real estate loans receivable that are no longer deemed collectible. At March 31, 2019, the allowance for loan loss of $87,062,000 is deemed to be sufficient to absorb expected losses. At March 31, 2019, we had three real estate loans with an outstanding balance of $21,224,000 on non-accrual status.

The following is a summary of our impaired loans (in thousands):

	Three Months Ended
	March 31, 2019		March 31, 2018
Balance of impaired loans at end of period	$	206,783	$	214,896
Allowance for loan losses	87,062		68,372
Balance of impaired loans not reserved	$	119,721	$	146,524
Average impaired loans for the period	$	198,028	$	265,973
Interest recognized on impaired loans(1)	3,971		5,327

 

⁽¹⁾ Represents cash interest recognized in the period since loans were identified as impaired.