7.Commitments and Contingencies

At September 30, 2017, we had commitments as follows (in thousands):


						Total
	Investment			2017		Commitment		Remaining
	Commitment			Funding		Funded		Commitment
Real estate properties (See Note 2. Real Estate Investments)	$	60,274	(1)	$	12,120	$	28,456	$	31,818
Accrued incentives and earn-out liabilities (2)		14,000			—		—		14,000
Lease incentives		7,113			438		438		6,675
Mortgage loans (See Note 2.Real Estate Investments)		51,000	(1)		9,333		14,672		36,328
Joint venture investments (See Note 3. Investments in Unconsolidated Joint Ventures)		25,650			1,101		23,014		2,636
Notes receivable (See Note 4. Notes Receivable)		500			—		—		500
Totals	$	158,537		$	22,992	$	66,580	$	91,957

⁽¹⁾

Represents commitments to purchase land and improvements, if applicable, and to develop, re-develop, renovate or expand seniors housing and health care properties.

⁽²⁾

During the three and nine months ended September 30, 2017, we recorded non‑cash interest expense of $125 and $476, respectively, related to these contingent liabilities. At September 30, 2017, the fair value of our contingent payments was $8,790.

As part of a lease arrangement, we committed to provide the lessee a lease incentive payment upon the properties covered under the lease achieving a certain rent coverage ratios. Based on the projected performance at lease commencement, the lease incentive payment was deemed probable and estimable; therefore, we recorded the contingent lease incentive liability and the related lease incentive asset. The contingent lease incentive liability was accreting up to the settlement amount of the estimated payment date and the related lease incentive asset was amortizing as a yield adjustment over the life of the lease. During the third quarter of 2017, upon reviewing the current projections of the properties, we concluded that as a result of the lessee changing its business model, the payment of the contingent lease incentive was not probable and the current projections do not support the properties achieving the required rent coverage ratios within the exercisable period. Accordingly, we wrote off the accrued incentive liability of $3,476,000 and the related lease incentive asset of $2,634,000 resulting in income of $842,000 which was included in the interest and other income line item in our consolidated statement of income.

We are a party from time to time to various general and professional liability claims and lawsuits asserted against the lessees or borrowers of our properties, which in our opinion are not singularly or in the aggregate material to our results of operations or financial condition. These types of claims and lawsuits may include matters involving general or professional liability, which we believe under applicable legal principles are not our responsibility as a non-possessory landlord or mortgage holder. We believe that these matters are the responsibility of our lessees and borrowers pursuant to general legal principles and pursuant to insurance and indemnification provisions in the applicable leases or mortgages. We intend to continue to vigorously defend such claims.