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Loans Receivable
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Loans Receivable Loans Receivable
Loans receivable are recorded on our Consolidated Balance Sheets in real estate loans receivable, net of allowance for credit losses, or for non-real estate loans receivable, in receivables and other assets. Real estate loans receivable consists of mortgage loans and other real estate loans, which are primarily collateralized by a first, second or third mortgage lien, a leasehold mortgage on, or an assignment of the partnership interest in, the related properties, as well as corporate guarantees and/or personal guarantees. Non-real estate loans are generally corporate loans with no real estate backing. Interest income on loans is recognized as earned based upon the principal amount outstanding subject to an evaluation of the risk of credit loss. Accrued interest receivable was $35,569,000 and $31,798,000 as of June 30, 2024 and December 31, 2023, respectively, and is included in receivables and other assets on the Consolidated Balance Sheets. The following is a summary of our loans receivable (in thousands):
 June 30, 2024December 31, 2023
Mortgage loans$1,511,008 $1,057,516 
Other real estate loans306,399 324,660 
Allowance for credit losses on real estate loans receivable(26,205)(20,589)
Real estate loans receivable, net of credit allowance1,791,202 1,361,587 
Non-real estate loans519,513 503,993 
Allowance for credit losses on non-real estate loans receivable(171,888)(173,874)
Non-real estate loans receivable, net of credit allowance347,625 330,119 
Total loans receivable, net of credit allowance$2,138,827 $1,691,706 
The following is a summary of our loan activity for the periods presented (in thousands):    
 Six Months Ended
 June 30, 2024June 30, 2023
Advances on loans receivable$580,145 $76,397 
Less: Receipts on loans receivable138,059 46,493 
Net cash advances (receipts) on loans receivable$442,086 $29,904 
During the six months ended June 30, 2024, we provided a first mortgage loan collateralized by a portfolio of seniors housing communities for $456,199,000. The loan bears interest at 10% per annum.
The allowance for credit losses on loans receivable is maintained at a level believed adequate to absorb potential losses in our loans receivable. The determination of the credit allowance is based on a quarterly evaluation of each of these loans, including general economic conditions and estimated collectability of loan payments. We evaluate the collectability of our loans receivable based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors, and nature, extent, and value of the underlying collateral.
A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that we will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans we identified as having deteriorated credit quality, we determine the amount of credit loss on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, we will return these loans to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance.
For the remaining loans we assess credit loss on a collective pool basis and use our historical loss experience for similar loans to determine the reserve for credit losses. The following is a summary of our loans by credit loss category (in thousands):
June 30, 2024
Loan categoryYears of OriginationLoan Carrying ValueAllowance for Credit LossNet Loan BalanceNo. of Loans
Deteriorated loans2007 - 2023$196,211 $(169,808)$26,403 6 
Collective loan pool2010 - 2019230,146 (3,021)227,125 16 
Collective loan pool202033,415 (439)32,976 5 
Collective loan pool2021867,202 (11,566)855,636 10 
Collective loan pool2022115,338 (1,514)113,824 16 
Collective loan pool2023343,267 (4,507)338,760 13 
Collective loan pool2024551,341 (7,238)544,103 8 
Total loans$2,336,920 $(198,093)$2,138,827 74 
During the three months ended June 30, 2024, certain secured and unsecured indebtedness payable by Genesis to us, which has a carrying value of $202,434,000, was modified to extend the maturity date to June 30, 2025, with no other changes to the terms.
The total allowance for credit losses balance is deemed sufficient to absorb expected losses relating to our loan portfolio. The following is a summary of the allowance for credit losses on loans receivable for the periods presented (in thousands):                            
Six Months Ended
June 30, 2024June 30, 2023
Balance at beginning of period$194,463 $164,249 
Provision for loan losses, net(1)
6,177 3,233 
Purchased deteriorated loan— 19,077 
Loan write-offs(2,399)— 
Foreign currency translation(148)(219)
Balance at end of period$198,093 $186,340 
(1) Excludes the provision for loan loss on held-to-maturity debt securities.