Real Estate Loans Receivable

6 Months Ended

Jun. 30, 2017

Real Estate Loans Receivable [Abstract]

Real Estate Loans Receivable

6. Real Estate Loans Receivable

Please see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 for discussion of our accounting policies for real estate loans receivable and related interest income.

The following is a summary of our real estate loan activity for the periods presented (in thousands):

		Six Months Ended
		June 30, 2017						June 30, 2016
				Outpatient						Outpatient
		Triple-net		Medical		Totals		Triple-net		Medical		Totals
Advances on real estate loans receivable:
	Investments in new loans	$	10,037	$	-	$	10,037	$	8,223	$	-	$	8,223
	Draws on existing loans		40,680		-		40,680		42,803		33		42,836
	Net cash advances on real estate loans		50,717		-		50,717		51,026		33		51,059
Receipts on real estate loans receivable:
	Loan payoffs		97,039		60,500		157,539		182,613		27,303		209,916
	Principal payments on loans		798		-		798		4,454		-		4,454
	Sub-total		97,837		60,500		158,337		187,067		27,303		214,370
	Less: Non-cash activity(1)(2)		(61,337)		(60,500)		(121,837)		(31,014)		(15,013)		(46,027)
	Net cash receipts on real estate loans		36,500		-		36,500		156,053		12,290		168,343
Net cash advances (receipts) on real estate loans			14,217		-		14,217		(105,027)		(12,257)		(117,284)
Change in balance due to foreign currency translation			5,471		-		5,471		(8,504)		-		(8,504)
Net change in real estate loans receivable		$	(41,649)	$	(60,500)	$	(102,149)	$	(144,545)	$	(27,270)	$	(171,815)
(1) Triple-net and prior year outpatient medical represents acquisitions of assets previously financed as real estate loans. Please see Note 3 for additional information.
(2) Current year outpatient medical represents a deed in lieu of foreclosure on a previously financed first mortgage property.

In 2016, we restructured two existing real estate loans in the triple-net segment with Genesis Healthcare. The two existing loans, with a combined principal balance of $317,000,000, were scheduled to mature in 2017 and 2018. These loans were restructured into four separate loans effective October 1, 2016. Each loan has a five-year term, a 10% interest rate and 25 basis point annual escalator. In 2016, we recorded a loan loss charge in the amount of $6,935,000 on one of the loans as the present value of expected future cash flows was less than the carrying value of the loan. We expect to collect all principal amounts due under the loans and, due to the passage of time, at June 30, 2017, the allowance for loan losses related to these loans is $5,811,000. At June 30, 2017, we had no real estate loans with outstanding balances on non-accrual status and recorded no provision for loan losses during the three months ended June 30, 2017.

		Six Months Ended
	June 30, 2017		June 30, 2016
Balance of impaired loans at end of period	$	289,473	$	-
Allowance for loan losses		5,811		-
Balance of impaired loans not reserved	$	283,662	$	-
Average impaired loans for the period	$	327,324	$	-
Interest recognized on impaired loans		16,464		-