XML 27 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Loans Receivable
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans Receivable Loans Receivable
Loans receivable are recorded on our Consolidated Balance Sheets in real estate loans receivable, net of credit allowance, 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 or pledge 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 on the principal amount outstanding, subject to an evaluation of the risk of credit loss. Accrued interest receivable was $33,032,000 and $32,205,000 as of March 31, 2025 and December 31, 2024, 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):
 March 31, 2025December 31, 2024
Mortgage loans$1,571,028 $1,540,437 
Other real estate loans225,965 290,438 
Allowance for credit losses on real estate loans receivable(24,285)(25,831)
Real estate loans receivable, net of credit allowance1,772,708 1,805,044 
Non-real estate loans229,554 230,508 
Allowance for credit losses on non-real estate loans receivable(7,816)(7,966)
Non-real estate loans receivable, net of credit allowance221,738 222,542 
Total loans receivable, net of credit allowance$1,994,446 $2,027,586 
The following is a summary of our loan activity for the periods presented (in thousands):    
 Three Months Ended
 March 31, 2025March 31, 2024
Advances on loans receivable$19,672 $116,789 
Less: Receipts on loans receivable100,372 36,472 
Net cash advances (receipts) on loans receivable$(80,700)$80,317 
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 all outstanding 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 status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, we may 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 and expectations of future performance of the borrowers to determine the reserve for credit losses. The following is a summary of our loans by credit loss category (in thousands):
March 31, 2025
Loan categoryYears of OriginationLoan Carrying ValueAllowance for Credit LossNet Loan BalanceNo. of Loans
Deteriorated loans2007 - 2019$9,450 $(7,293)$2,157 3 
Collective loan pool2010 - 2020162,537 (1,987)160,550 14 
Collective loan pool2021898,478 (11,129)887,349 9 
Collective loan pool202294,866 (1,160)93,706 13 
Collective loan pool2023307,447 (3,760)303,687 8 
Collective loan pool2024544,470 (6,658)537,812 11 
Collective loan pool20259,299 (114)9,185 2 
Total loans$2,026,547 $(32,101)$1,994,446 60 
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 activity within the allowance for credit losses on loans receivable for the periods presented (in thousands):
Three Months Ended
March 31, 2025March 31, 2024
Balance at beginning of period$33,797 $194,463 
Provision for loan losses, net(2,007)1,014 
Loan write-offs— (1,088)
Effect of foreign currency311 (123)
Balance at end of period$32,101 $194,266