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Notes Receivable | 12 Months Ended
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Dec. 31, 2022
Notes Receivable. |
Notes Receivable | 7. Notes Receivable Notes receivable consists of mezzanine loans and working capital loans. The following table summarizes our investments in notes receivable at December 31, 2022 (dollar amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest | ​ | ​ | ​ | ​ | ​ | Type of | ​ | Gross | ​ | ​ | ​ | ​ | Type of | ​
Rate | ​ | IRR | ​ | Maturity | ​ | Loan | ​ | Investment | ​ | ​ | # of loans | ​ | Property | ​
5.0% | ​ | — | ​ | 2023 | ​ | Working capital | ​ | $ | 380 | ​ | ​ | 1 | ​ | ALF | ​
7.0% | ​ | — | ​ | 2023 | ​ | Working capital | ​ | ​ | 500 | ​ | ​ | 1 | ​ | ALF | ​
8.0% | ​ | 12.0% | ​ | 2023 | ​ | Mezzanine | ​ | ​ | 7,460 | ​ | ​ | 1 | ​ | ALF | ​
5.0% | ​ | — | ​ | 2024 | ​ | Working capital | ​ | ​ | 184 | ​ | ​ | 1 | ​ | ALF | ​
8.0% | ​ | 10.5% | ​ | 2024 | ​ | Mezzanine | ​ | ​ | 4,355 | (1) | ​ | 1 | ​ | ILF | ​
4.0% | ​ | — | ​ | 2024 | ​ | Working capital | ​ | ​ | 13,531 | ​ | ​ | 1 | ​ | SNF |
5.0% | ​ | — | ​ | 2025 | ​ | Working capital | ​ | ​ | 932 | ​ | ​ | 1 | ​ | ALF | ​
7.5% | ​ | — | ​ | 2027 | ​ | Working capital | ​ | ​ | 550 | ​ | ​ | 1 | ​ | ALF | ​
8.0% | ​ | 11.0% | ​ | 2027 | ​ | Mezzanine | ​ | ​ | 25,000 | ​ | ​ | 1 | ​ | ALF | ​
6.5% | ​ | — | ​ | 2030 | ​ | Working capital | ​ | ​ | 138 | ​ | ​ | 1 | ​ | SNF | ​
7.1% | ​ | — | ​ | 2030 | ​ | Working capital | ​ | ​ | 1,607 | ​ | ​ | 2 | ​ | ALF | ​
7.0% | ​ | — | ​ | 2031 | ​ | Working capital | ​ | ​ | 2,693 | ​ | ​ | 1 | ​ | ALF | ​
8.0% | ​ | — | ​ | 2032 | ​ | Working capital | ​ | ​ | 1,642 | ​ | ​ | 1 | ​ | SNF | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 58,972 | ​ | ​ | 14 | ​ | ​ | ​
(1) | Subsequent to December 31, 2022, we received $4,545 which includes a prepayment fee and the exit IRR totaling $190, from a mezzanine loan early payoff. The mezzanine loan was on a 136-unit in Oregon.
The following table is a summary of our notes receivable components at December 31, 2022 and 2021 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | At December 31,
​ | 2022 | ​ | 2021 |
Mezzanine loans (1) (2) | $ | 36,815 | ​ | $ | 11,815 | ​
Other loans | ​ | 22,157 | ​ | ​ | 16,808 | ​
Notes receivable credit loss reserve | ​ | (589) | ​ | ​ | (286) | ​
Total | $ | 58,383 | ​ | $ | 28,337 | ​
(1) | Subsequent to December 31, 2022, we received $4,545, which includes a prepayment fee and the exit IRR totaling $190 from a mezzanine loan early payoff. The mezzanine loan was on a 136-unit ILF in Oregon.
​
(2) | During 2022, we originated a $25,000 mezzanine loan for the recapitalization of a five-property seniors housing portfolio. The mezzanine loan has a term of approximately five years, with two one-year extension options and bears interest at 8% with an IRR of 11%. The five communities are located in Oregon and Montana, have a total of 621 units, and include ILF, ALF and MC.
The following table summarizes our notes receivable activity for the years ended December 31, 2022 through 2020 (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Year Ended December 31, | ​
​ | ​ | 2022 | ​ | ​ | 2021 | ​ | ​ | 2020 | ​
Advances under notes receivable | $ | 37,192 | (1) | $ | 16,353 | (2) | $ | 2,078 | ​
Interest reserve withheld | ​ | — | ​ | ​ | 353 | ​ | ​ | — | ​
Principal payments received under notes receivable (3) | ​ | (6,843) | ​ | ​ | (2,694) | ​ | ​ | (5,275) | ​
Reclassified to lease incentives | ​ | — | ​ | ​ | — | ​ | ​ | (300) | (4)
Provision (recovery) for credit losses | ​ | (303) | ​ | ​ | (140) | ​ | ​ | 35 | ​
Net increase (decrease) in notes receivable | $ | 30,046 | ​ | $ | 13,872 | ​ | $ | (3,462) | ​
(1) | Includes origination of a $25,000 mezzanine loan for the recapitalization of five ALFs located in Oregon and Montana. Additionally includes origination of a working capital loan for a commitment of up to $2,000, of which $1,867 has been funded and $9,761 of funding under a working capital loan to HMG Healthcare, LLC.
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(2) | Funding under working capital notes and mezzanine loans with interest ranging between 4.0% and 8.0%. During 2021, we originated a $4,355 mezzanine loan and withheld a $353 interest reserve. The mezzanine loan has a three-year term with two 12-month extensions. The initial rate is 8.0% for the first 18 months increasing to 10.5% thereafter with an 10.5% IRR. Additionally, we provided an operator a $25,000 secured working capital loan to facilitate the transition of the 11 properties from Senior Care and Abri Health and funded $9,900 under this working capital loan.
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(3) | Subsequent to December 31, 2022, we received $4,545, which includes a prepayment fee and the exit IRR totaling $190, from a mezzanine loan early payoff. The mezzanine loan was on a 136-unit ILF in Oregon.
​
(4) | Represents an interim working capital loan related to a development project which matured upon completion of the development project and commencement of the lease.

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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 https://asc.fasb.org/subtopic&trid=2196772 + Details
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