Investment in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2018

Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

3.Investment in Unconsolidated Joint Ventures

Our investment in unconsolidated joint ventures consists of a preferred equity investment and two mezzanine loans which are accounted for as unconsolidated joint ventures in accordance with GAAP. The following table summarizes our investment in unconsolidated joint ventures (dollar amounts in thousands):

	Type	Type		Total		Currently		Number
	of	of		Preferred		Paid in		of		Investment
State	Properties	Investment		Return		Cash		Beds/ Units		Commitment
Arizona	ALF/MC/ILF	Preferred Equity	(1)	15	%	6	%	585	$	25,650
Florida	UDP-ALF/IL/MC	Mezzanine	(2)	15	%	10	%	99		2,900
Florida	UDP-ALF/MC	Mezzanine	(2)	15	%	10	%	127		3,400
								811	$	31,950

⁽¹⁾ We have concluded that the JV is a VIE in accordance with GAAP. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the JV. Therefore, we account for the JV investment using the equity method.

⁽²⁾ We evaluated these acquisition, development and construction (or ADC) arrangements and determined that the characteristics are similar to jointly-owned investments or partnerships, and accordingly, these investments are accounted for as unconsolidated joint ventures under the equity method of accounting instead of loan accounting.

The following table summarizes our capital contributions, income recognized and cash interest received related to our investments in unconsolidated joint ventures (in thousands):

	Three Months Ended March 31,
Type	2018						2017
of		Capital		Income		Cash Interest		Capital		Income		Cash Interest
Properties		Contribution		Recognized		Received		Contribution		Recognized		Received
ALF/MC/ILF	$	380	$	429	$	446	$	914	$	317	$	302
UDP-ALF/IL/MC		—		128		97		—		128		54
UDP-ALF/MC		—		74		—		—		—		—
	$	380	$	631	$	543	$	914	$	445	$	356