NOTE 7 – VARIABLE INTEREST ENTITIES

As of December 31, 2018, Orianna and Agemo are VIEs. Below is a summary of our assets and liabilities associated with each operator as of December 31, 2018:


	Operator
	Orianna		Agemo
	(in thousands)
Assets
Real estate investments - net	$	30,459	$	413,396
Investments in direct financing leases - net		120,545		-
Other investments - net		40,242		46,287
Contractual receivables - net		249		18,017
Straight-line rent receivables		—		34,203
Lease inducement		—		2,362
Above market lease		—		2
Subtotal		191,495		514,267

Collateral
Letters of credit		—		(9,253)
Personal guarantee		—		(15,000)
Other collateral		(176,253)		(413,396)
Subtotal		(176,253)		(437,649)

Maximum exposure to loss	$	15,242	$	76,618

In determining our maximum exposure to loss from these VIEs, we considered the underlying value of the real estate subject to leases with these operators and other collateral, if any, supporting our other investments, which may include accounts receivable, security deposits, letters of credit or personal guarantees, if any. See Note 4 – Direct Financing Leases regarding our relationship with Orianna, Note 6 – Other Investments regarding the terms of other investments with these two operators and Note 20 – Commitments and Contingencies regarding our commitment to provide capital expenditure funding to our operators which includes Agemo.

The table below reflects our total revenues from Orianna and Agemo for the twelve months ended December 31, 2018 and 2017:


	Year Ended December 31, 2018				Year Ended December 31, 2017
	Operator				Operator
	Orianna		Agemo		Orianna		Agemo
	(in thousands)
Revenue
Rental income	$	—	$	59,291	$	2,401	$	62,287
Income from direct financing leases		—		—		29,877		—
Other investment income		3,477		3,500		906		4,884
Total (1)	$	3,477	$	62,791	$	33,184	$	67,171

(1)

For the years ended December 31, 2018 and 2017, we received cash rental income and other investment income from Agemo of approximately $56.8 million and $39.8 million, respectively.