LOANS RECEIVABLE AND INVESTMENTS

6 Months Ended

Jun. 30, 2021

Loans Receivable And Investments [Abstract]

NOTE 5—LOANS RECEIVABLE AND INVESTMENTS

As of June 30, 2021 and December 31, 2020, we had $868.4 million and $900.2 million, respectively, of net loans receivable and investments relating to senior housing and healthcare operators or properties. The following is a summary of our loans receivable and investments, net, including amortized cost, fair value and unrealized gains or losses on available for sale investments:


	Amortized Cost		Allowance		Unrealized Gain		Carrying Amount		Fair Value
	(In thousands)
As of June 30, 2021:
Secured/mortgage loans and other, net (1)	$	555,083	$	—	$	—	$	555,083	$	538,417
Government-sponsored pooled loan investments, net (2)	37,548		—		3,540		41,088		41,088
Total investments reported as secured loans receivable and investments, net	592,631		—		3,540		596,171		579,505
Non-mortgage loans receivable, net	63,049		(5,689)		—		57,360		57,638
Marketable debt securities (3)	198,056		—		16,818		214,874		214,874
Total loans receivable and investments, net	$	853,736	$	(5,689)	$	20,358	$	868,405	$	852,017

As of December 31, 2020:
Secured/mortgage loans and other, net	$	555,840	$	—	$	—	$	555,840	$	508,707
Government-sponsored pooled loan investments, net	55,154		(8,846)		3,419		49,727		49,727
Total investments reported as secured loans receivable and investments, net	610,994		(8,846)		3,419		605,567		558,434
Non-mortgage loans receivable, net	74,700		(17,623)		—		57,077		57,009
Marketable debt securities	213,334		—		24,219		237,553		237,553
Total loans receivable and investments, net	$	899,028	$	(26,469)	$	27,638	$	900,197	$	852,996

(1)In July 2021, we received proceeds of $66 million in full repayment of secured notes at par from Holiday Retirement.

(2)Investment in government-sponsored pool loans has a contractual maturity date in 2023.

(3)Investment in marketable debt securities has a contractual maturity date in 2026. These securities were redeemed by the issuer in July 2021.

2021 Activity

In July 2021, we received $66 million from Holiday Retirement as repayment in full at par of the secured notes outstanding which Holiday Retirement had previously issued to us as part of the April 2020 lease termination transaction.

In June 2021, we received a notice of full redemption for Ardent’s outstanding 9.75% Senior Notes due 2026 at a price equal to 107.313% of the principal amount of the notes, plus accrued and unpaid interest. We received aggregate proceeds of $224 million from the redemption of these marketable debt securities in July 2021. We expect to recognize a gain of $16.6 million during the third quarter of 2021.

In April 2021, we received $19.2 million in full repayment of certain government-sponsored pooled loan investments. In the first quarter of 2021, prior to such repayment, we reversed an $8.8 million allowance we had previously recorded in 2020 on this investment with a corresponding adjustment to allowance on loans receivable and investments in our Consolidated Statements of Income. There was no impact to our second quarter 2021 Consolidated Statements of Income from the loan repayment.

During the six months ended June 30, 2021, we received aggregate proceeds of $16.5 million for the redemption and sale of marketable debt securities, resulting in total gains of $1.0 million. As of December 31, 2020, $1.2 million of unrealized gain was presented within accumulated other comprehensive income related to these securities. These securities had a weighted average interest rate of 8.3% and were due to mature between 2024 and 2026.

In March 2021, $11.9 million of previously reserved non-mortgage loans were forgiven. We derecognized both the amortized cost bases and allowances for these loans during the quarter ended March 31, 2021.