Notes Receivable (Tables)

3 Months Ended

Mar. 31, 2024

Notes Receivable.

Summary of investments in notes receivable

Interest				Type of	Gross				Type of
Rate	IRR		Maturity	Loan	Investment			# of loans	Property
4.0%	—		2024	Working capital	$	13,531		1	SNF
5.0%	—		2025	Working capital		732		1	ALF
8.0%	11.0	%	2027	Mezzanine		25,000		1	ALF
8.8%	12.0	%	2028	Mezzanine		17,000		1	ALF
6.5%	—		2030	Working capital		138		1	SNF
7.3%	—		2030	Working capital		500		1	ALF
7.4%	—		2030	Working capital		957		1	ALF
0.0%	—		2031	Working capital		2,693		1	ALF
					$	60,551	(1)	8

(1) Excludes the impact of credit loss reserve.

Summary of mezzanine loans and other loan arrangements

The following table is a summary of our notes receivable components as of March 31, 2024 and December 31, 2023 (in thousands):

	At March 31, 2024		At December 31, 2023
Mezzanine loans	$	42,000	$	42,000
Working capital loans		18,551		19,101
Notes receivable credit loss reserve		(605)		(611)
Total	$	59,946	$	60,490

Summary of notes receivable activity

The following table summarizes our notes receivable activity for the three months ended March 31, 2024 and 2023 (in thousands):

	Three Months Ended March 31,
		2024		2023
Advances under notes receivable	$	—	$	605
Principal payments received under notes receivable		(550)		(12,641)	(1)
Recovery of credit losses		6		120
Net decrease in notes receivable	$	(544)	$	(11,916)

(1) During 2023, we received $4,545, which includes a prepayment fee and the exit IRR totaling $190 from a mezzanine loan prepayment. The mezzanine loan was on a 136-unit ILF in Oregon. Additionally, another $7,461 mezzanine loan was effectively prepaid through converting it as part of our $51,111 investment in a participating interest in an existing mortgage loan that is secured by a 203-unit ALF, ILF and MC located in Georgia. We recorded $1,380 of interest income in connection with the effective prepayment of the mezzanine loan.