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Loans Receivable
 9 Months Ended
Sep. 30, 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 $36,024,000 and $32,205,000 as of September 30, 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 as of the dates indicated (in thousands):
 September 30, 2025December 31, 2024
Mortgage loans$1,631,292 $1,540,437 
Other real estate loans165,777 290,438 
Allowance for credit losses on real estate loans receivable(23,281)(25,831)
Real estate loans receivable, net of credit allowance1,773,788 1,805,044 
Non-real estate loans617,872 230,508 
Allowance for credit losses on non-real estate loans receivable(9,189)(7,966)
Non-real estate loans receivable, net of credit allowance608,683 222,542 
Total loans receivable, net of credit allowance$2,382,471 $2,027,586 
The following is a summary of our loan activity for the periods presented (in thousands):    
 Nine Months Ended
 September 30, 2025September 30, 2024
Advances on loans receivable$436,629 $603,619 
Less: Receipts on loans receivable208,136 250,791 
Net cash advances (receipts) on loans receivable$228,493 $352,828 
During the nine months ended September 30, 2024, we provided a first mortgage loan in the amount of $456,199,000, collateralized by a portfolio of seniors housing communities. The loan bears interest at 10% per annum.
Both the unsecured and the secured notes with Genesis Healthcare ("Genesis") are recorded in non-real estate loans receivable. During the nine months ended September 30, 2024, we sold the entirety of the Genesis unsecured notes receivable for cash proceeds of $24,246,000. 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 for the nine months ended September 30, 2024 in the table above. Additionally during 2024, the 2024 secured notes were modified to extend the maturity date to June 30, 2026 and to convert to cash-pay interest beginning January 1, 2025.
During the nine months ended September 30, 2025, we reclassified the entirety of the secured notes receivable from Genesis, with a carrying value of $108,047,000, to the deteriorated loan category following Genesis's initiation of Chapter 11 bankruptcy proceedings. The notes receivable were evaluated on an individual basis to determine the appropriateness of the allowance for credit losses, which included an estimate of collectability, collateral valuation and the anticipated recovery through the bankruptcy process.
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 generally 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):
September 30, 2025
Loan categoryYears of OriginationLoan Carrying ValueAllowance for Credit LossNet Loan BalanceNo. of Loans
Deteriorated loans(1)
2007 - 2019$120,863 $(8,523)$112,340 5 
Collective loan pool2010 - 202039,450 (461)38,989 11 
Collective loan pool2021926,938 (10,944)915,994 7 
Collective loan pool202299,819 (1,166)98,653 13 
Collective loan pool2023308,278 (3,600)304,678 8 
Collective loan pool2024515,829 (6,023)509,806 10 
Collective loan pool2025403,764 (1,753)402,011 10 
Total loans$2,414,941 $(32,470)$2,382,471 64 
(1) Interest recognized on loans classified as deteriorated loans as of the end of the respective reporting period was $4,698,000 and $9,320,000, for the three and nine months ended September 30, 2025, respectively.
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):
Nine Months Ended
September 30, 2025September 30, 2024
Balance at beginning of period$33,797 $194,463 
Provision for loan losses, net(2,032)10,370 
Loan write-offs(71)(151,406)
Effect of foreign currency776 502 
Balance at end of period$32,470 $53,929