Rent and Tenant Receivables and Other Assets, Net

Rent and tenant receivables and other assets, net consisted of the following as of December 31, 2018 and 2017 (in thousands):



	December 31, 2018		December 31, 2017

Straight-line rent receivable, net ⁽¹⁾	$	259,106	$	230,529
Accounts receivable, net⁽²⁾	36,939		36,921
Deferred costs, net ⁽³⁾	17,515		5,746
Investment in direct financing leases, net	13,254		19,539
Mortgage notes receivable, net ⁽⁴⁾	10,164		20,294
Leasehold improvements, property and equipment, net ⁽⁵⁾	9,754		12,089
Investment in Cole REITs	7,844		3,264
Prepaid expenses	5,022		6,493
Other assets, net	3,594		5,003
Income tax receivable	1,760		3,213
Restricted escrow deposits	1,140		4,995
Investment securities, at fair value⁽⁶⁾	—		40,974
Total	$	366,092	$	389,060

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(1)	Allowance for uncollectible accounts included in straight-line rent receivable, net was $1.0 million and $2.0 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, the allowance related to suspended revenue recognition was $0.1 million. As of December 31, 2017, there was no allowance related to suspended revenue recognition.

(2)

In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts in the consolidated balance sheets and bad debt expense in property operating expenses in the consolidated statements of operations. Allowance for uncollectible accounts was $5.3 million and $6.3 million as of December 31, 2018 and 2017, respectively. The Company suspends revenue recognition when the collectability of amounts due pursuant to a lease is no longer reasonably assured. As of December 31, 2018 and 2017, the allowance related to suspended revenue recognition was $9.1 million and $12.6 million, respectively.

(3)

Amortization expense for deferred costs related to the revolving credit facilities totaled $7.3 million for the year ended December 31, 2018 and $10.4 million for each of the years ended December 31, 2017 and 2016. Accumulated amortization for deferred costs related to the Revolving Credit Facility, as defined in Note 7 – Debt, was $47.6 million and $40.3 million as of December 31, 2018 and 2017, respectively.

(4)

As of December 31, 2018, the Company owned five mortgage notes receivable with a weighted-average interest rate of 6.4% and weighted-average years to maturity of 12.1 years. During the year ended December 31, 2018, the Company sold three mortgage notes receivable with an aggregate carrying value of $8.8 million at December 31, 2017, resulting in a net gain of $1.7 million, which is included in other income, net in the accompanying consolidated statements of operations.

(5)

Amortization expense for leasehold improvements totaled $1.2 million for each of the years ended December 31, 2018 and 2017, with no related write-offs. Amortization expense for leasehold improvements totaled $2.3 million for the year ended December 31, 2016, inclusive of write-offs of $1.0 million. Accumulated amortization was $5.9 million and $4.7 million as of December 31, 2018 and 2017, respectively. Depreciation expense for property and equipment totaled $2.3 million, $1.8 million and $3.4 million for the years ended December 31, 2018, 2017 and 2016, respectively, inclusive of write-offs of $0.8 million, $0.6 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively. Accumulated depreciation was $7.0 million and $5.7 million as of December 31, 2018 and 2017, respectively.


(6)	During the year ended December 31, 2018, two commercial mortgage-backed securities (“CMBS”) were repaid and six CMBS were sold for an aggregate gross sales price of $36.0 million for a net realized loss of $2.2 million, which is included in other income, net in the accompanying consolidated statements of operations.