Mortgage Notes Receivable

3 Months Ended

Mar. 31, 2016

As of March 31, 2016, the Company owned nine mortgage notes receivable with a weighted-average interest rate of 6.3% and weighted-average years to maturity of 13.7 years. During the three months ended March 31, 2016, one note with a carrying value of $0.4 million at December 31, 2015, reached maturity and was paid in full. The following table details the mortgage notes receivable as of March 31, 2016 (dollar amounts in thousands):



Outstanding Balance		Carrying Value		Interest Rate Range				Maturity Date Range
$	25,470	$	23,559	5.9	%	–	7.2%	May 2020	–	January 2033

The Company’s mortgage notes receivable are comprised primarily of fully-amortizing or nearly fully-amortizing first mortgage loans. The Company has one mortgage note receivable where the Company does not receive monthly payments of principal and interest but rather the interest is capitalized into the outstanding balance that is due at maturity. The mortgage notes receivable are primarily on commercial real estate, each leased to a single tenant. Therefore, the Company’s monitoring of the credit quality of its mortgage notes receivable is focused primarily on an analysis of the tenant, including review of tenant quality and ratings, trends in the tenant’s industry and general economic conditions and an analysis of measures of collateral coverage, such as an estimate of the loan-to-value ratio (principal amount outstanding divided by the estimated value of the property) and its remaining term until maturity.

The following table summarizes the scheduled aggregate principal payments due to the Company on the mortgage notes receivable subsequent to March 31, 2016 (in thousands):



	Outstanding Balance
Due within one year	$	1,024
Due after one year through five years	5,344
Due after five years through 10 years	6,725
Due after 10 years⁽¹⁾	16,298
Total	$	29,391

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(1) Includes additional $3.9 million of interest that will be capitalized into the outstanding balance of the mortgage note receivable subsequent to March 31, 2016.