Mortgage Notes Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Mortgage Notes Receivable

Mortgage Notes Receivable

As of September 30, 2017, the Company owned eight mortgage notes receivable with a weighted-average interest rate of 6.2% and weighted-average years to maturity of 12.9 years. During the nine months ended September 30, 2017, one mortgage note with a carrying value of $1.5 million at repayment was paid in full prior to the maturity date. The following table details the mortgage notes receivable as of September 30, 2017 (dollar amounts in thousands):

Outstanding Balance		Carrying Value		Interest Rate Range				Maturity Date Range
$	22,700	$	20,510	5.9	%	–	6.8%	December 2026	–	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 September 30, 2017 (in thousands):

	Outstanding Balance
Due within one year	$	915
Due after one year through five years	4,341
Due after five years through 10 years	7,071
Due after 10 years(1)	14,175
Total	$	26,502

____________________________________

(1) Includes additional $3.8 million of interest that will be capitalized into the outstanding balance of the mortgage note receivable subsequent to September 30, 2017.