Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2017

Variable Interest Entities [Abstract]

The classification of the related assets and liabilities and the maximum loss exposure as a result of the Company’s involvement with these VIEs at June 30, 2017 was as follows (in thousands):



VIE Type	Asset/Liability Type	Maximum Loss Exposure and Carrying Amount⁽¹⁾
VIE tenants - DFLs ⁽²⁾	Net investment in DFLs	$	599,561
VIE tenants - operating leases ⁽²⁾	Lease intangibles, net and straight-line rent receivables	5,952
CCRC OpCo	Investments in unconsolidated joint ventures	218,832
RIDEA II PropCo	Investments in unconsolidated joint ventures	254,137
Development JVs	Investments in unconsolidated joint ventures	11,653
Loan- Senior Secured	Loans Receivable, net	137,025
Loan- Seller Financing	Loans Receivable, net	10,000
CMBS and LLC investment	Marketable debt and cost method investment	33,511

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(1)	The Company’s maximum loss exposure represents the aggregate carrying amount of such investments (including accrued interest).


(2)	The Company’s maximum loss exposure may be mitigated by re-leasing the underlying properties to new tenants upon an event of default.

Consolidated Assets and Liabilities of Variable Interest Entities

Total assets at June 30, 2017 and December 31, 2016 include VIE assets as follows (in thousands):



	June 30, 2017			December 31, 2016
Assets
Building and Improvements	$	2,796,279		$	3,522,310
Developments in Process	17,702			31,953
Land	222,893			327,241
Accumulated Depreciation	(559,789		)	(676,276		)
Net Real Estate	2,477,085			3,205,228
Investments in and advances to unconsolidated joint ventures	2,573			3,641
Accounts Receivable, Net	12,062			19,996
Cash and Cash Equivalents	45,034			35,844
Restricted Cash	41,843			22,624
Intangible Assets, Net	133,210			169,027
Other Assets, Net	53,400			69,562
Total Assets	$	2,765,207		$	3,525,922
Liabilities
Mortgage Debt	45,156			520,870
Intangible Liabilities, Net	8,475			8,994
Accounts Payable and Accrued Expenses	100,648			120,719
Deferred Revenue	18,453			23,456
Total Liabilities	$	172,732		$	674,039

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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