Lease Incentives (Tables)

12 Months Ended

Dec. 31, 2019

Lease Incentives

Summary of lease incentives by component

The following table summarizes lease incentives by component as of December 31, 2019 and 2018 (in thousands):

	At December 31,
		2019		2018
Non-contingent lease incentives	$	2,552	$	14,443

Summary of lease incentive activity

The following table summarizes our lease incentive activity for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	2019							2018							2017
		Funding		Amortization		Write-off			Funding		Amortization		Write-off			Funding		Amortization		Write-off
Non-contingent lease incentives	$	387	$	(385)	$	(11,893)	(1)	$	1,272	$	(1,733)	$	—		$	6,544	$	(1,590)	$	(1,205)	(3)
Contingent lease incentives		—		—		—			—		(359)		(6,219)	(2)		—		(619)		(2,634)	(4)
Net increase (decrease)	$	387	$	(385)	$	(11,893)		$	1,272	$	(2,092)	$	(6,219)		$	6,544	$	(2,209)	$	(3,839)

(1) In accordance with ASC 842 lease standard adopted on January 1, 2019, we wrote-off $12,093 of lease incentives related to leases for which we determined it is not probable we will collect substantially all of the contractual lease obligation through maturity. See Note 2. Summary of Significant Accounting Policies for further discussion. Additionally, we reclassified a $200 interim working capital loan as lease incentive. See Note 7. Notes Receivable for further discussion.

(2) We entered into an amended master lease agreement with Senior Lifestyle Management, LLC (“Senior Lifestyle”). Among the provisions of the amendment, the contingent lease incentive payable to Senior Lifestyle was removed. Therefore, we wrote-off the Senior Lifestyle contingent lease incentive.

(3) Represents the write-off of lease incentives related to two MC communities due to negotiations to transition these properties to another operator in our portfolio that never materialized.

(4) Represents the write-off of a lease incentive related to an ALF due to a change to the business model at the property that resulted in lower net operating income and the improbability of paying the earn-out.