Investment in Unconsolidated Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2019

Investment in Unconsolidated Joint Ventures

Summary of investments in unconsolidated joint ventures

The following table summarizes our investment in unconsolidated joint ventures (dollar amounts in thousands):

Type

Total

Currently

Number

Preferred

Paid in

Investment

Carrying

State

Properties

Investment

Return

Cash

Beds/ Units

Commitment

Value

Arizona

ILF/ALF/MC

Preferred Equity

⁽¹⁾

⁽²⁾

585

—

19,003

⁽³⁾

Total

585

—

19,003

(1)	We have concluded that the JV is a VIE in accordance with GAAP. However, because we do not control the entity, nor do we have any role in the day-to-day management, we are not the primary beneficiary of the JV. Therefore, we account for the JV investment using the equity method.

(2)	Effective second quarter of 2019, this JV was placed on cash basis due to delinquency of our preferred return.

(3)	During the fourth quarter of 2019, we recorded an impairment loss of $5,500 to write our preferred equity investment down to its estimated sale price. See below for more detail.

Summary of capital contributions, income recognized and cash interest received from investments in unconsolidated joint ventures

The following table summarizes our capital contributions, income recognized, and cash interest received related to our investments in unconsolidated joint ventures during the years ended December 31, 2019, 2018 and 2017 (in thousands):


	Type
	of			Capital			Income			Cash Interest
Year	Properties			Contribution			Recognized			Received
2019	ILF/ALF/MC		$	472		$	1,029		$	1,580
	ILF/ALF/MC	⁽¹⁾		—	⁽¹⁾		955	⁽¹⁾		979	⁽¹⁾
	ALF/MC	⁽²⁾		—	⁽²⁾		404	⁽²⁾		432	⁽²⁾
Total			$	472		$	2,388		$	2,991

2018	ILF/ALF/MC		$	670		$	2,041		$	1,975
	ILF/ALF/MC	⁽¹⁾		—	⁽¹⁾		511	⁽¹⁾		396	⁽¹⁾
	ALF/MC	⁽²⁾		—	⁽²⁾		312	⁽²⁾		—	⁽²⁾
Total			$	670		$	2,864		$	2,371

2017	ILF/ALF/MC		$	1,101		$	1,560		$	1,436
	ILF/ALF/MC			—	⁽¹⁾		511	⁽¹⁾		302	⁽¹⁾
	UDP-ALF/MC			2,747	⁽²⁾		192	⁽²⁾		—	⁽²⁾
Total			$	3,848		$	2,263		$	1,738

(1)

We had a $2,900 mezzanine loan commitment for a 99-unit seniors housing community in Florida with a total preferred return of 15%. The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. Since interest payments were deferred and no interest was recorded for the first twelve months of the loan, we used the effective interest method in accordance with GAAP to recognize interest income and recorded the difference between the effective interest income and cash interest income to loan principal balance. During the third quarter of 2019, the mezzanine loan was paid off.

(2)

We had a $3,400 mezzanine loan commitment for the development of a 127-unit seniors housing community in Florida with a total preferred return of 15%. The mezzanine loan was an ADC arrangement which we determined it to have characteristics similar to a jointly-owned arrangement and recorded it as an unconsolidated joint venture. During the first quarter of 2019, the mezzanine loan was paid off.