Loans Receivable

3 Months Ended

Mar. 31, 2016

6.	Loans Receivable

The Trust’s loans receivable at March 31, 2016 and December 31, 2015 are as follows (in thousands):


			Carrying Amount (1)				Contractual Maturity Date
Description	Loan Position	Stated Interest Rate March 31, 2016	March 31, 2016		December 31, 2015		Contractual Maturity Date
Rockwell	Mezzanine	12.0%	$	—	$	—		05/01/16
Churchill	Whole Loan	LIBOR + 3.75%		—		—		08/01/16
Poipu Shopping Village	B-Note	6.62%		2,760		2,769		01/06/17
Mentor Building	Whole Loan	10.0%		2,511		2,511		09/10/17

			$	5,271	$	5,280

(1)	The carrying amount represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable.

The carrying amount of loans receivable includes accrued interest of $28,000 at March 31, 2016 and December 31, 2015.

The weighted average coupon as calculated on the par value of the Trust’s loans receivable was 7.99% and 7.97% at March 31, 2016 and December 31, 2015, respectively, and the weighted average yield to maturity as calculated on the carrying value of the Trust’s loans receivable was 13.54% and 13.54% at March 31, 2016 and December 31, 2015, respectively.

Loan Receivable Activity

Activity related to loans receivable is as follows (in thousands):


	Three Months Ended			Three Months Ended
	March 31, 2016			March 31, 2015
Balance at beginning of period	$	5,280		$	24,005
Interest (received) accrued, net		—			(189	)
Repayments		(9	)		(15,352	)

Balance at end of period	$	5,271		$	8,464

Secured Financing Receivable

In August 2013 the Trust closed on an agreement to acquire its venture partner’s (“Elad”) 50% interest in the mezzanine lender with respect to the One South State Street, Chicago, Illinois property (“Lender LP”) for $30,000,000. In connection with the transaction, the Trust entered into an option agreement with Elad granting Elad the right, but not obligation, to repurchase the interest in the venture. The option agreement provided Elad, as the transferor, the option to unilaterally cause the return of the asset at the earlier of two years from and after August 21, 2013 or an event of default on Lender LP’s mezzanine debt. As such, Elad was able to retain control of its interest in Lender LP for financial reporting purposes as the exercise of the option was unconditional other than for the passage of time. As a result, for financial reporting purposes, the transfer of the financial asset was accounted for as a secured financing rather than an acquisition.

On April 27, 2016 the Trust sold its interest in the secured financing receivable. See Note 7 – “Equity Investments” for further details on the sale.