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VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2021

Variable Interest Entities [Abstract]

Below is a summary of our assets, liabilities, collateral and maximum exposure to loss associated with these unconsolidated VIEs as of December 31, 2021 and 2020:


	December 31,		December 31,
	2021		2020

	(in thousands)
Assets
Real estate assets – net	$	1,144,851	$	1,121,498
Assets held for sale		191,016		—
Other investments – net		230,768		181,401
Contractual receivables – net		1,227		1,233
Straight-line rent receivables		(41,512)		(56,664)
Lease inducement		64,307		69,666
Total assets		1,590,657		1,317,134

Liabilities
Net in-place lease liability		(305)		(331)
Security deposit		(4,715)		—
Contingent liability		(43,915)		(43,915)
Total liabilities		(48,935)		(44,246)

Collateral
Letters of credit		—		(9,253)
Personal guarantee		(48,000)		(48,000)
Other collateral⁽¹⁾		(1,335,867)		(1,121,498)
Total collateral		(1,383,867)		(1,178,751)

Maximum exposure to loss	$	157,855	$	94,137

(1)

Amount excludes accounts receivable amounts that Omega has a security interest in as collateral under the two working capital loans with operators that are VIEs. The fair value of the accounts receivable available to Omega was $29.2 million and $25.0 million as of December 31, 2021 and December 31, 2020, respectively.

Schedule of Variable Interest Entities revenue

The table below reflects our total revenues from the operators that are considered VIEs for the years ended December 31, 2021, 2020 and 2019:


	Year Ended December 31,
	2021		2020		2019

	(in thousands)
Revenue
Rental income⁽¹⁾	$	120,381	$	30,055	$	99,750
Other investment income		15,336		11,864		9,323
Total	$	135,717	$	41,919	$	109,073

(1)	The rental income for the year ended December 31, 2020, reflects the write-off of approximately $75.3 million of contractual rent receivable, straight-line rent receivable and lease inducements related to Agemo (see Note 5 – Contractual Receivables and Other Receivables and Lease Inducements).

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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