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Loans Receivable | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Loans Receivable | Loans Receivable The following table summarizes the Company’s loans receivable (in thousands):
| December 31,
| 2019 |  | 2018
| Real Estate Secured |  | Other Secured |  | Total |  | Real Estate Secured |  | Other Secured |  | Total
Mezzanine | $ | — |  |  | $ | 27,752 |  |  | $ | 27,752 |  |  | $ | — |  |  | $ | 21,013 |  |  | $ | 21,013 |
Participating development loans and other(1) | 161,964 |  |  | — |  |  | 161,964 |  |  | 42,037 |  |  | — |  |  | 42,037 |
Unamortized discounts, fees, and costs | — |  |  | 863 |  |  | 863 |  |  | — |  |  | (52 | ) |  | (52 | )
| $ | 161,964 |  |  | $ | 28,615 |  |  | $ | 190,579 |  |  | $ | 42,037 |  |  | $ | 20,961 |  |  | $ | 62,998 |
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(1) | At December 31, 2019, the Company had $25 million remaining of commitments to fund $174 million of senior housing development projects. At December 31, 2018, the Company had $73 million remaining of commitments to fund a $115 million senior housing development project.
Loans Receivable Internal Ratings The following table summarizes the Company’s internal ratings for loans receivable at December 31, 2019 (dollars in thousands):
|  | Carrying Amount |  | Percentage of Loan Portfolio |  | Internal Ratings
Investment Type |  |  |  | Performing Loans |  | Watch List Loans |  | Workout Loans
Real estate secured |  | $ | 161,964 |  |  | 85 |  | $ | 161,964 |  |  | $ | — |  |  | $ | — |
Other secured |  | 28,615 |  |  | 15 |  | 28,615 |  |  | — |  |  | — |
|  | $ | 190,579 |  |  | 100 |  | $ | 190,579 |  |  | $ | — |  |  | $ | — |
Real Estate Secured Loans The following table summarizes the Company’s loans receivable secured by real estate at December 31, 2019 (dollars in thousands):
Final Maturity Date |  | Number of Loans |  | Payment Terms |  | Principal Amount(1) |  | Carrying Amount
2021 |  | 1 |  | Monthly interest-only payments, accrues interest at 7.5% and secured by a senior housing facility under development in Texas |  | $ | 2,250 |  |  | $ | 2,250 |
2021 |  | 1 |  | Monthly interest-only payments, accrues interest at 7.5% and secured by a senior housing facility under development in Florida |  | 8,290 |  |  | 8,290 |
2022 |  | 1 |  | Monthly interest-only payments, accrues interest at 6.5% and secured by a senior housing facility under development in Washington(2) |  | 102,412 |  |  | 102,412 |
2022 |  | 1 |  | Monthly interest-only payments, accrues interest at 5.75% and secured by a senior housing facility in Illinois |  | 4,200 |  |  | 4,200 |
2026 |  | 1 |  | Monthly interest-only payments, accrues interest at the greater of 2% or LIBOR, plus 4.25% and secured by a senior housing facility in Florida |  | 44,812 |  |  | 44,812 |
|  | 5 |  |  |  | $ | 161,964 |  |  | $ | 161,964 |
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(1) | Represents future contractual principal payments to be received on loans receivable secured by real estate.
(2) | Contains a participation feature that allows the Company to participate in up to 20% of the appreciation of the asset through the time the loan is refinanced or repaid.
During the year ended December 31, 2019, the Company recognized $6 million in interest income related to loans secured by real estate. SHOP Seller Financing In December 2019, the Company sold two SHOP facilities in Florida for $56 million and provided the buyer with initial financing of $45 million. The remainder of the sales price was received in cash at the time of sale. Additionally, the Company has agreed to provide up to $10 million of redevelopment funding (80% of the estimated cost of redevelopment), none of which has been funded as of December 31, 2019. The initial and redevelopment financings are secured by the buyer's equity ownership in the property. Four Seasons Health Care In March 2017, pursuant to a shift in the Company’s investment strategy, the Company sold its £138.5 million par value Four Seasons senior notes (the “Four Seasons Notes”) for £83 million ($101 million). The disposition of the Four Seasons Notes generated a £42 million ($51 million) gain on sale, recognized in other income (expense), net. Other Secured Loans Tandem Health Care Loan From July 2012 through May 2015, the Company funded, in aggregate, $257 million under a collateralized mezzanine loan facility (the “Mezzanine Loan”) to certain affiliates of Tandem. During the year ended December 31, 2017, the Company recognized aggregate impairment charges of $144 million related to the Mezzanine Loan, which reduced the carrying value to $105 million as of December 31, 2017. The aggregate impairment charges were the result of a variety of factors, including, but not limited to, poor operating results of the underlying real estate assets, market and industry data that reflected a declining trend in admissions and a continuing shift away from higher-rate Medicare plans in the post-acute/skilled nursing sector, bids from prospective purchasers of the Mezzanine Loan, and eventually entering into an agreement with the borrower for a discounted repayment of the Mezzanine Loan. The calculations of the fair value were primarily based on an income approach and relied on forecasted EBITDAR and market data, including, but not limited to, sales price per unit/bed, rent coverage ratios, and real estate capitalization rates. All valuation inputs were considered to be Level 2 measurements within the fair value hierarchy. In March 2018, the Company sold the Mezzanine Loan to a third party for approximately $112 million, which resulted in an impairment recovery, net of transaction costs and fees, of $3 million included in other income (expense), net. The Company holds no further economic interest in the operations of Tandem. Beginning in the first quarter of 2017, the Company elected to recognize interest income on a cash basis. During the years ended December 31, 2018 and 2017, the Company recognized interest income of zero and $23 million, respectively, and received cash payments of zero and $25 million, respectively, from Tandem. U.K. Bridge Loan In 2016, the Company provided a £105 million ($131 million at closing) bridge loan (the “U.K. Bridge Loan”) to Maria Mallaband Care Group Ltd. ("MMCG") to fund the acquisition of a portfolio of seven care homes in the U.K. Under the U.K. Bridge Loan, the Company retained a three-year call option to acquire those seven care homes at a future date for £105 million, subject to certain conditions precedent being met. In March 2018, upon resolution of all conditions precedent, the Company began the process of exercising its call option to acquire the seven care homes and concluded that it should consolidate the real estate. As a result, the Company derecognized the outstanding loan receivable of £105 million and recognized a £29 million ($41 million) loss on consolidation. Refer to Note 18 for further discussion regarding impact of consolidating the seven care homes during the first quarter of 2018. In June 2018, the Company completed the process of exercising the above-mentioned call option. The seven care homes acquired through the call option were included in the U.K. JV transaction (see Note 4).

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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