XML 112 R38.htm IDEA: XBRL DOCUMENT

Loans Receivable and Other Lending Investments, net (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of the Company's loans and other lending investments by class

The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands):



	As of December 31,
Type of Investment	2019			2018
Senior mortgages	$	572,584		$	760,749
Corporate/Partnership loans	119,818			148,583
Subordinate mortgages	10,877			10,161
Total gross carrying value of loans	703,279			919,493
Reserves for loan losses	(28,634		)	(53,395		)
Total loans receivable, net	674,645			866,098
Other lending investments⁽¹⁾	153,216			122,126
Total loans receivable and other lending investments, net	$	827,861		$	988,224

_______________________________________________________________________________

(1)

As of December 31, 2019, includes a $44.3 million financing receivable related to the acquisition of bowling centers from one of the Company's lessees (refer to Note 5).

Schedule of changes in the Company's reserve for loan losses

Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Years Ended December 31,
	2019			2018			2017
Reserve for loan losses at beginning of period	$	53,395		$	78,489		$	85,545
Provision for (recovery of) loan losses	6,482			16,937			(5,828		)
Charge-offs	(31,243		)	(42,031		)	(1,228		)
Reserve for loan losses at end of period	$	28,634		$	53,395		$	78,489

_______________________________________________________________________________

(1)

During the year ended December 31, 2019, the Company charged-off $19.2 million from the specific reserve due to the resolution of a non-performing loan and $12.0 million due to the deterioration of the collateral on a separate non-performing loan.

Schedule of recorded investment in loans and associated reserve for loan losses

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment⁽¹⁾			Collectively Evaluated for Impairment⁽²⁾			Total
As of December 31, 2019
Loans	$	37,820		$	668,769		$	706,589
Less: Reserve for loan losses	(21,701		)	(6,933		)	(28,634		)
Total⁽³⁾	$	16,119		$	661,836		$	677,955
As of December 31, 2018
Loans	$	66,725		$	857,662		$	924,387
Less: Reserve for loan losses	(40,395		)	(13,000		)	(53,395		)
Total⁽³⁾	$	26,330		$	844,662		$	870,992

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.1 million and $0.5 million as of December 31, 2019 and 2018, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status; therefore, the unamortized amounts associated with these loans are not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.7 million and $3.1 million as of December 31, 2019 and 2018, respectively.

(3)

The Company's recorded investment in loans as of December 31, 2019 and 2018 includes accrued interest of $3.3 million and $4.9 million, respectively, which is included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. As of December 31, 2019, excludes a $44.3 million financing receivable (refer to Note 5). As of December 31, 2019 and 2018, the total amounts exclude $108.9 million and $122.1 million, respectively, of securities that are evaluated for impairment under ASC 320.

Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating

The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of December 31,
	2019			2018
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	537,201	2.71	$	697,807	2.76
Corporate/Partnership loans	120,658		2.83	149,663		2.84
Subordinate mortgages	10,910		3.00	10,192		3.00
Total	$	668,769	2.73	$	857,662	2.77

Schedule of recorded investment in loans, aged by payment status and presented by class

The Company's recorded investment in loans, aged by payment status and presented by class, was as follows ($ in thousands):



As of December 31, 2019	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
Senior mortgages	$	537,201	$	—	$	37,820	$	37,820	$	575,021
Corporate/Partnership loans	120,658		—		—		—		120,658
Subordinate mortgages	10,910		—		—		—		10,910
Total	$	668,769	$	—	$	37,820	$	37,820	$	706,589
As of December 31, 2018
Senior mortgages	$	703,807	$	—	$	60,725	$	60,725	$	764,532
Corporate/Partnership loans	149,663		—		—		—		149,663
Subordinate mortgages	10,192		—		—		—		10,192
Total	$	863,662	$	—	$	60,725	$	60,725	$	924,387

_______________________________________________________________________________

(1)

As of December 31, 2019, the Company had one loan which was greater than 90 days delinquent and was in various stages of resolution, including legal and environmental matters, and was 10.5 years outstanding. As of December 31, 2018, the Company had two loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 4.0 to 9.0 years outstanding.

Schedule of recorded investment in impaired loans, presented by class

The Company's recorded investment in impaired loans, presented by class, was as follows ($ in thousands)⁽¹⁾:



	As of December 31, 2019							As of December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With an allowance recorded:
Senior mortgages	$	37,820	$	37,923	$	(21,701	)	$	66,725	$	66,777	$	(40,395	)
Total	$	37,820	$	37,923	$	(21,701	)	$	66,725	$	66,777	$	(40,395	)

_______________________________________________________________________________

(1)

All of the Company's non-accrual loans are considered impaired and included in the table above.

Schedule of average recorded investment in impaired loans and interest income recognized, presented by class

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, was as follows ($ in thousands):



	For the Years Ended December 31,
	2019				2018				2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Subordinate mortgages	$	—	$	—	$	—	$	301	$	6,582	$	1,127
Subtotal	—		—		—		301		6,582		1,127
With an allowance recorded:
Senior mortgages	38,556		—		67,041		—		82,749		—
Corporate/Partnership loans	—		—		39,169		—		156,756		—
Subtotal	38,556		—		106,210		—		239,505		—
Total:
Senior mortgages	38,556		—		67,041		—		82,749		—
Corporate/Partnership loans	—		—		39,169		—		156,756		—
Subordinate mortgages	—		—		—		301		6,582		1,127
Total	$	38,556	$	—	$	106,210	$	301	$	246,087	$	1,127

Schedule of other lending investments - securities

Other lending investments includes the following securities ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain		Estimated Fair Value		Net Carrying Value
As of December 31, 2019
Available-for-Sale Securities
Municipal debt securities	$	21,140	$	21,140	$	2,756	$	23,896	$	23,896
Held-to-Maturity Securities
Debt securities	100,000		84,981		—		84,981		84,981
Total	$	121,140	$	106,121	$	2,756	$	108,877	$	108,877
As of December 31, 2018
Available-for-Sale Securities
Municipal debt securities	$	21,185	$	21,185	$	476	$	21,661	$	21,661
Held-to-Maturity Securities
Debt securities	120,866		100,465		7		100,472		100,465
Total	$	142,051	$	121,650	$	483	$	122,133	$	122,126

Schedule of contractual maturities of the Company's securities

As of December 31, 2019, the contractual maturities of the Company's securities were as follows ($ in thousands):



	Held-to-Maturity Securities				Available-for-Sale Securities
	Amortized Cost Basis		Estimated Fair Value		Amortized Cost Basis		Estimated Fair Value
Maturities
Within one year	$	—	$	—	$	—	$	—
After one year through 5 years	84,981		84,981		—		—
After 5 years through 10 years	—		—		—		—
After 10 years	—		—		21,140		23,896
Total	$	84,981	$	84,981	$	21,140	$	23,896