Notes Receivable, Net

9 Months Ended

Sep. 30, 2018

Accounts And Notes Receivable Net [Abstract]

Notes Receivable, Net

3. Notes Receivable, Net

The Company’s notes receivable, net were collateralized either by the underlying properties or the borrower’s ownership interest in the entities that own the properties, and were as follows (dollars in thousands):

	September 30,		December 31,		September 30, 2018
Description	2018		2017		Number		Maturity Date	Interest Rate
Core Portfolio	$	56,475	$	101,695		2	Apr 2019 - Apr 2020	6.0% - 8.1%
Fund II		32,379		31,778		1	May 2020	2.5%
Fund III		5,306		5,106		1	Jul 2020	18.0%
Fund IV		15,250		15,250		1	Feb 2021	15.3%
	$	109,410	$	153,829		5

During the nine months ended September 30, 2018, the Company:

• exchanged $22.0 million of a Core note receivable plus accrued interest thereon of $0.3 million for an additional undivided interest in the Town Center property (Note 4);

• received full payment on $26.0 million of Core notes receivable plus accrued interest of $0.2 million;

• funded an additional $2.8 million to its existing $15.0 million Core note receivable and entered into an agreement to extend the maturity to April 1, 2020;

• advanced an additional $0.2 million on a Fund III note receivable; and

• increased the balance of a Fund II note receivable by the interest accrued of $0.6 million.

During the year ended December 31, 2017, the Company:

• recovered the full value of a $12.0 million Core note receivable, which was previously in default, plus accrued interest and fees aggregating $16.8 million;

• exchanged $92.7 million of Core notes receivable plus accrued interest thereon of $1.8 million for additional undivided interests in the Market Square and Town Center properties (Note 4);

• funded an additional $10.0 million on an existing Core note receivable, which had a total commitment of $20.0 million, and was subsequently repaid in full during the fourth quarter;

• entered into an agreement to extend the maturity of a $15.0 million Core note receivable to June 1, 2018;

• increased the balance of a Fund II note receivable by the interest accrued of $0.8 million;

• advanced an additional $0.6 million on a Fund III note receivable; and

• exchanged a $9.0 million Fund IV note receivable plus accrued interest of $0.1 million thereon for an investment in a shopping center in Windham, Maine (Note 2).

The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company’s loan in relation to other debt secured by the collateral and the prospects of the borrower.

Earnings from these notes and mortgages receivable are reported within the Company’s Structured Financing segment (Note 12).