Finance Receivables (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of capital leases net investment In direct financing leases

Finance Receivables

Net investments in direct financing leases and loans receivable are summarized as follows (in thousands):

	Maturity Date	March 31, 2022		December 31, 2021
Net investments in direct financing leases (a)	2022 - 2036	$	547,751	$	572,205
Sale-leaseback transactions accounted for as loans receivable (b)	2038 - 2052	215,780		217,229
Secured loans receivable (a) (c)	2022 - 2025	24,143		24,143
		$	787,674	$	813,577

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(a)Amounts are net of allowance for credit losses, as disclosed below.

(b)These investments are accounted for as loans receivable in accordance with ASC 310, Receivables and ASC 842, Leases. Maturity dates reflect the current lease maturity dates.

(c)Amounts are net of allowance for credit losses of $12.6 million as of both March 31, 2022 and December 31, 2021.

Net Investments in Direct Financing Leases

Net investments in direct financing leases is summarized as follows (in thousands):

	March 31, 2022		December 31, 2021
Lease payments receivable	$	377,824	$	414,002
Unguaranteed residual value	522,586		545,896
	900,410		959,898
Less: unearned income	(339,284)		(370,353)
Less: allowance for credit losses (a)	(13,375)		(17,340)
	$	547,751	$	572,205

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(a)During the three months ended March 31, 2022 and 2021, we recorded an allowance for credit losses of $0.8 million and a net reversal of allowance for credit losses of $1.4 million, respectively, on our net investments in direct financing leases due to changes in expected economic conditions, which was included within Other gains and (losses) in our consolidated statements of income. In addition, during the three months ended March 31, 2022, we reduced the allowance for credit losses balance by $4.7 million, in connection with the reclassification of a property from Net investments in direct financing leases and loans receivable to Land, buildings and improvements subject to operating leases, as described below.

Schedule of finance receivables credit quality indicators

A summary of our finance receivables by internal credit quality rating, excluding our deferred acquisition fees receivable (Note 3) and allowance for credit losses, is as follows (dollars in thousands):

	Number of Tenants / Obligors at		Carrying Value at
Internal Credit Quality Indicator	March 31, 2022	December 31, 2021	March 31, 2022		December 31, 2021
1 – 3	17	17	$	696,946	$	703,280
4	8	9	116,696		140,230
5	—	—	—		—
			$	813,642	$	843,510