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Loans Receivable
 9 Months Ended
Sep. 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 $33,992,000 and $31,798,000 as of September 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):
 September 30, 2024December 31, 2023
Mortgage loans$1,576,567 $1,057,516 
Other real estate loans290,419 324,660 
Allowance for credit losses on real estate loans receivable(26,533)(20,589)
Real estate loans receivable, net of credit allowance1,840,453 1,361,587 
Non-real estate loans274,814 503,993 
Allowance for credit losses on non-real estate loans receivable(27,396)(173,874)
Non-real estate loans receivable, net of credit allowance247,418 330,119 
Total loans receivable, net of credit allowance$2,087,871 $1,691,706 
The following is a summary of our loan activity for the periods presented (in thousands):    
 Nine Months Ended
 September 30, 2024September 30, 2023
Advances on loans receivable$603,619 $328,554 
Less: Receipts on loans receivable250,791 68,404 
Net cash advances (receipts) on loans receivable$352,828 $260,150 
During the nine months ended September 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.
In June 2024, certain secured and unsecured indebtedness payable by Genesis to us was modified to extend the maturity date to June 30, 2025, with no other changes to the terms. In September 2024, we sold the entirety of the unsecured notes receivable from Genesis for cash proceeds of $24,246,000, which was equal to the carrying value after application of the allowance for credit losses and unrecognized interest. In addition, we sold a portion of the secured notes receivable from Genesis for cash proceeds of $55,504,000. The cash proceeds from these sales are included in receipts on loans receivable in the summary of loan activity above. Additionally, the secured notes were modified to extend the maturity date to June 30, 2026, and to convert to cash-pay interest beginning January 1, 2025.
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):
September 30, 2024
Loan categoryYears of OriginationLoan Carrying ValueAllowance for Credit LossNet Loan BalanceNo. of Loans
Deteriorated loans2007 - 2023$28,526 $(26,370)$2,156 4 
Collective loan pool2010 - 2019153,610 (1,991)151,619 11 
Collective loan pool202033,534 (434)33,100 5 
Collective loan pool2021915,539 (12,040)903,499 10 
Collective loan pool2022105,701 (1,370)104,331 14 
Collective loan pool2023332,429 (4,307)328,122 11 
Collective loan pool2024572,461 (7,417)565,044 10 
Total loans$2,141,800 $(53,929)$2,087,871 65 

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):                            
Nine Months Ended
September 30, 2024September 30, 2023
Balance at beginning of period$194,463 $164,249 
Provision for loan losses, net(1)
10,370 6,280 
Purchased deteriorated loan— 19,077 
Reserve for unrecognized interest added to principal— 2,066 
Loan write-offs(151,406)— 
Foreign currency translation502 92 
Balance at end of period$53,929 $191,764 
(1) Excludes the provision for loan loss on held-to-maturity debt securities.