Notes Receivable (Tables)

6 Months Ended

Jun. 30, 2022

Summary of mezzanine loans and other loan arrangements

The following table is a summary of our notes receivable components as of June 30, 2022 and December 31, 2021 (in thousands):


	June 30, 2022		December 31, 2021
Mezzanine loans ⁽¹⁾	$	36,815	$	11,815
Other loans		21,979		16,808
Notes receivable credit loss reserve		(588)		(286)
Total	$	58,206	$	28,337

(1)

During the first quarter of 2022, we originated a $25,000 mezzanine loan for the recapitalization of a five-property seniors housing portfolio. The mezzanine loan has a term of approximately five years, with two one-year extension options and bears interest at 8% with an IRR of 11%. The five communities are located in Oregon and Montana, have a total of 621 units, and include independent living, assisted living and memory care.

Summary of notes receivable activity

The following table summarizes our notes receivable activity for the six months ended June 30, 2022 and 2021 (in thousands):


	Six Months Ended June 30,
		2022			2021
Advances under notes receivable	$	36,788	⁽¹⁾	$	1,811
Principal payments received under notes receivable		(6,618)			(2,553)
Provision for credit losses		(301)			7
Net increase (decrease) in notes receivable	$	29,869		$	(735)

(1)

Includes origination of a $25,000 mezzanine loan for the recapitalization of five assisted living communities located in Oregon and Montana. Additionally includes origination of a working capital loan for a commitment of up to $2,000, of which $1,867 has been funded and $9,541 of funding under a working capital loan to HMG Healthcare, LLC (“HMG”).