8. Lease Incentives

The following table summarizes lease incentives by component as of December 31, 2018 and 2017 (in thousands):


	At December 31,
		2018		2017
Non-contingent lease incentives	$	14,443	$	14,904
Contingent lease incentives		—		6,577
Total	$	14,443	$	21,481

The following table summarizes our lease incentive activity for the years ended December 31, 2018, 2017 and 2016 (in thousands):


	2018							2017							2016
		Funding		Amortization		Write-off			Funding		Amortization		Write-off			Funding		Amortization		Write-off
Non-contingent lease incentives	$	1,272	$	(1,733)	$	—		$	6,544	$	(1,590)	$	(1,205)	(2)	$	4,559	$	(1,207)	$	—
Contingent lease incentives		—		(359)		(6,219)	(1)		—		(619)		(2,634)	(3)		268		(748)		(514)	(4)
Net increase (decrease) in lease incentives	$	1,272	$	(2,092)	$	(6,219)		$	6,544	$	(2,209)	$	(3,839)		$	4,827	$	(1,955)	$	(514)

(1)

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.

(2)

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.

(3)

Represents the write-off of 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.

(4)

Represents the write-off of lease incentive related to two MC due to transitioning these properties to another operator in our portfolio.

Non-contingent lease incentives represent payments made to our lessees for various reasons including entering into a new lease or lease amendments and extensions. Contingent lease incentives represent potential contingent earn-out payments that may be made to our lessees in the future, as part of our lease agreements. From time to time, we may commit to provide contingent payments to our lessees, upon our properties achieving certain rent coverage ratios. Once the contingent payment becomes probable and estimable, the contingent payment is recorded as a lease incentive. Lease incentives are amortized as a yield adjustment to rental income over the remaining life of the lease.