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Investment in Unconsolidated Joint Ventures (Tables)
 12 Months Ended
Dec. 31, 2018
Investment in Unconsolidated Joint Ventures  
Summary of investments in unconsolidated joint ventures

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

 

 

Carrying

 

State

 

Properties

 

Investment

 

Return

 

 

Cash

 

 

Beds/ Units

 

 

Commitment

 

 

Value

 

Arizona

 

ALF/MC/ILF

 

Preferred Equity

(1)
15

%

 
7

%

 
585

 

$

25,650

 

$

24,032

 

Florida

 

ALF/IL/MC

 

Mezzanine

(2)
15

%

 
12

%

 
99

 

 

2,900

(3)

 

3,183

(3)

Florida

 

UDP-ALF/MC

 

Mezzanine

(2)
15

%

 
10

%

 
127

 

 

3,400

 

 

3,400

 

Total

 

 

 

 

 

 

 

 

 

 

 
811

 

$

31,950

 

$

30,615

 

(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 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.

 

(3)

Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to the loan principal balance.
Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures

The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the years ended December 31, 2018, 2017 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Type

 

 

 

 

 

of

 

 

Capital

 

 

Income

 

 

Cash Interest

 

Year

 

Properties

 

 

Contribution

 

 

Recognized

 

 

Received

 

2018

 

ALF/MC/ILF

 

$

670

 

$

2,041

 

$

1,975

 

 

 

ALF/IL/MC

 

 

 —

 

 

511

 

 

396

 

 

 

UDP-ALF/MC

 

 

 —

 

 

312

(1)

 

 —

(1)

Total 2018

 

 

 

$

670

 

$

2,864

 

$

2,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

ALF/MC/ILF

 

 

1,101

 

 

1,560

 

 

1,436

 

 

 

ALF/IL/MC

 

 

 —

 

 

511

 

 

302

 

 

 

UDP-ALF/MC

 

 

2,747

 

 

192

(1)

 

 —

(1)

Total 2017

 

 

 

$

3,848

 

$

2,263

 

$

1,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

ALF/MC/ILF

 

$

1,770

 

$

1,138

 

$

1,695

 

 

 

ALF/IL/MC

 

 

 —

 

 

 —

 

 

 —

 

 

 

UDP-ALF/MC

 

 

 —

 

 

 —

 

 

 —

 

Total 2016

 

 

 

$

1,770

 

$

1,138

 

$

1,695

 

We withheld $653 at the time of loan origination which is being applied to interest. As of December 31, 2018, we still hold $177 which will be applied to future interest.