Real Estate Loans Receivable

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

Real Estate Loans Receivable

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, 2018 for discussion of our accounting policies for real estate loans receivable and related interest income. 

The following is a summary of our net real estate loans receivable (in thousands):

	September 30, 2019			December 31, 2018
Mortgage loans	$	320,989		$	317,443
Other real estate loans	108,913			81,268
Less allowance for losses on loans receivable	(68,372		)	(68,372		)
Totals	$	361,530		$	330,339

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

	Nine Months Ended
	September 30, 2019							September 30, 2018
		Triple-net		Outpatient Medical		Totals		Seniors Housing Operating		Triple-net			Outpatient Medical		Totals
Advances on real estate loans receivable:
Investments in new loans		$	25,000	$	5,000	$	30,000	$	11,806	$	10,628		$	14,993	$	37,427
Draws on existing loans		33,955		18,390		52,345		—		29,709			—		29,709
Net cash advances on real estate loans		58,955		23,390		82,345		11,806		40,337			14,993		67,136
Receipts on real estate loans receivable:
Loan payoffs		29,020		—		29,020		—		116,161			—		116,161
Principal payments on loans		3,110		—		3,110		—		33,431			—		33,431
Net cash receipts on real estate loans		32,130		—		32,130		—		149,592			—		149,592
Net cash advances (receipts) on real estate loans		$	26,825	$	23,390	$	50,215	$	11,806	$	(109,255	)	$	14,993	$	(82,456	)

 

In 2016, we restructured real estate loans with Genesis HealthCare and 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. In 2017, we recorded an additional loan loss charge of $62,966,000 relating to real estate loans with Genesis HealthCare based on an estimation of expected future cash flows discounted at the effective interest rate of the loans. In March 2019, we recognized a provision for loan losses of $18,690,000 to fully reserve for certain Triple-net real estate loans receivable that were no longer deemed collectible. During the quarter ended June 30, 2019, these loans were written off. As of September 30, 2019, the allowance for loan loss balance of $68,372,000 is deemed to be sufficient to absorb expected losses. At September 30, 2019, we had one real estate loan with an outstanding balance of $2,534,000 on non-accrual status.

The following is a summary of our impaired loans (in thousands):

	Nine Months Ended
	September 30, 2019		September 30, 2018
Balance of impaired loans at end of period	$	188,043	$	201,971
Allowance for loan losses	68,372		68,372
Balance of impaired loans not reserved	$	119,671	$	133,599
Average impaired loans for the period	$	194,298	$	230,645
Interest recognized on impaired loans(1)	12,082		13,361

 

⁽¹⁾ Represents cash interest recognized in the period since loans were identified as impaired.