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Credit Loss Reserve
 6 Months Ended
Jun. 30, 2024
Credit Loss Reserve  
Credit Loss Reserve

6.

Credit Loss Reserve

We apply Accounting Standards Codification Topic 326, Financial Instruments-Credit Losses (“ASC 326”), which requires a forward-looking “expected loss” model, to estimate our loan losses on our mortgage loans, financing receivables and notes receivable. In determining the “expected” credit loss reserves on these instruments, we utilize the probability of default and discounted cash flow methods. Further, we stress-test the results to reflect the impact of unknown adverse future events including recessions.

The expected credit losses related to our financial instruments that are within the scope of ASC 326 are as follows (in thousands):

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Balance

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Balance

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at

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Provision

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at

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Description

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12/31/2023

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/(Recovery)

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6/30/2024

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Credit Loss Reserve- Financing Receivables

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$

1,980

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$

1,635

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$

3,615

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Credit Loss Reserve- Mortgage Loans Receivable

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$

4,814

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$

(887)

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$

3,927

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Credit Loss Reserve-Notes Receivable

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$

611

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$

(21)

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$

590

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We elected not to measure an allowance for expected credit losses on accrued interest receivable under the expected credit loss standard as we have a policy in place to reserve or write off accrued interest receivable in a timely manner through our quarterly review of the loan and property performance. Therefore, we elected the policy to write off accrued interest receivable by recognizing credit loss expense. As of June 30, 2024, the total balance of accrued interest receivable of $57,465,000 was not included in the measurement of expected credit loss. For the three and six months ended June 30, 2024 and 2023, we did not recognize any write-off related to accrued interest receivable.