Earnings from these notes and mortgages receivable are reported within the Company’s Structured Financing segment (Note 12). Interest receivable is included in Other assets, net (Note 5). The Company’s notes receivable, net are generally collateralized either by the underlying properties or the borrowers’ ownership interests in the entities that own the properties, and were as follows (dollars in thousands):


	June 30,			December 31,			June 30, 2024
Description	2024			2023			Number		Maturity Date	Interest Rate
Core Portfolio (a)	$	128,173		$	126,228			6	Apr 2020 - Dec 2027	4.65% - 12.00%
Allowance for credit losses		(1,520	)		(1,279	)
Notes receivable, net	$	126,653		$	124,949			6

(a)

Includes one note receivable from an OP Unit holder, with a balance of $6.0 million as of December 31, 2023. The note was paid off during the six months ended June 30, 2024.

Changes in the Company’s credit allowance were as follows (in thousands):


	Six Months Ended June 30,
	2024		2023

Allowance for credit losses as of beginning of periods	$	1,279	$	834
Provision of loan losses		241		65
Total - credit losses and reserves	$	1,520	$	899

Due to the lack of comparability across the Structured Financing portfolio, each note was evaluated separately. As a result, the Company did not elect the collateral-dependent allowance for credit losses practical expedient for five of its notes with a total amortized cost of $132.8 million, inclusive of accrued interest of $22.4 million, for which an allowance for credit losses has been recorded aggregating $1.5 million as of June 30, 2024. For one note in this portfolio, aggregating $21.6 million, inclusive of accrued interest of $3.8 million as of June 30, 2024, the Company has elected to apply the practical expedient in accordance with ASC Topic 326: Financial Instruments - Credit Losses (“ASC 326”) and did not establish an allowance for credit losses because (i) this note is a collateral-dependent note, which due to their settlement terms is not expected to be settled in cash but rather by the Company’s possession of the real estate collateral; and (ii) as of June 30, 2024, the Company determined that the estimated fair value of the collateral at the expected realization date for this loans was sufficient to cover the carrying value of its investments in this note receivable.

One Core Portfolio note aggregating $21.6 million including accrued interest (exclusive of default interest and other amounts due on the loan that have not been recognized) was in default as of June 30, 2024 and December 31, 2023. On April 1, 2020, the loan matured and was not repaid. The Company expects to take appropriate actions to recover the amounts due under the loan and has issued a reservation of rights letter to the borrowers and guarantor, reserving all of its rights and remedies under the applicable loan documents and otherwise. The Company has determined that the collateral for this loan is sufficient to cover the loan’s carrying value as of June 30, 2024 and December 31, 2023.