Loans Receivable and Other Lending Investments, net (Tables)

3 Months Ended

Mar. 31, 2014

Schedule of the Company's loans and other lending investments by class

The following is a summary of the Company's loans receivable and other lending investments by class ($ in thousands):



	As of
Type of Investment	March 31, 2014			December 31, 2013
Senior mortgages	$	1,103,471		$	1,071,662
Subordinate mortgages	61,764			60,679
Corporate/Partnership loans	527,865			473,045
Total gross carrying value of loans	$	1,693,100		$	1,605,386
Reserves for loan losses	(370,076		)	(377,204		)
Total loans receivable, net	$	1,323,024		$	1,228,182
Other lending investments—securities	153,466			141,927
Total loans receivable and other lending investments, net(1)	$	1,476,490		$	1,370,109

Explanatory Note:

_______________________________________________________________________________


(1)	The Company's recorded investment in loans as of March 31, 2014 and December 31, 2013 also includes accrued interest of $7.6 million and $6.5 million, respectively, which are included in "Accrued interest and operating lease income receivable, net" on the Company's Consolidated Balance Sheets.

Schedule of changes in the Company's reserve for loan losses

Reserve for loan losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):



	For the Three Months Ended March 31,
	2014			2013
Reserve for loan losses at beginning of period	$	377,204		$	524,499
Provision for (recovery of) loan losses(1)	(3,400		)	10,206
Charge-offs	(3,728		)	(12,910		)
Reserve for loan losses at end of period	$	370,076		$	521,795

Explanatory Note:

_______________________________________________________________________________


(1)	For the three months ended March 31, 2014 and 2013, the provision for loan losses includes recoveries of previously recorded loan loss reserves of $5.2 million and $4.6 million, respectively.

Schedule of recorded investment in loans and associated reserve for loan losses

The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):



	Individually Evaluated for Impairment(1)			Collectively Evaluated for Impairment(2)			Loans Acquired with Deteriorated Credit Quality(3)		Total
As of March 31, 2014
Loans	$	687,812		$	1,003,264		$	9,586	$	1,700,662
Less: Reserve for loan losses	(339,076		)	(31,000		)	—		(370,076		)
Total	$	348,736		$	972,264		$	9,586	$	1,330,586
As of December 31, 2013
Loans	$	752,425		$	849,613		$	9,889	$	1,611,927
Less: Reserve for loan losses	(348,004		)	(29,200		)	—		(377,204		)
Total	$	404,421		$	820,413		$	9,889	$	1,234,723

Explanatory Notes:

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $0.2 million and a net premium of $0.5 million as of March 31, 2014 and December 31, 2013, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status and therefore, the unamortized amounts associated with these loans are not currently being amortized into income.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net discount of $7.6 million and $4.6 million as of March 31, 2014 and December 31, 2013, respectively.


(3)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs aggregating to a net premium of $0.4 million and $0.4 million as of March 31, 2014 and December 31, 2013, respectively. These loans had cumulative principal balances of $9.9 million and $10.2 million, as of March 31, 2014 and December 31, 2013, respectively.

Schedule of investment in performing loans, presented by class and by credit quality, as indicated by risk rating

The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):



	As of
	March 31, 2014			December 31, 2013
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	624,044	2.69	$	591,145	2.50
Subordinate mortgages	62,449		3.40	61,364		3.37
Corporate/Partnership loans	494,012		3.66	438,831		3.88
Total	$	1,180,505	3.14	$	1,091,340	3.11

Schedule of recorded investment in loans, aged by payment status and presented by class

As of March 31, 2014, the Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



	Current		Less Than and Equal to 90 Days		Greater Than 90 Days		Total Past Due		Total
Senior mortgages	$	658,085	$	—	$	448,737	$	448,737	$	1,106,822
Subordinate mortgages	62,449		—		—		—		62,449
Corporate/Partnership loans	531,391		—		—		—		531,391
Total	$	1,251,925	$	—	$	448,737	$	448,737	$	1,700,662

Schedule of recorded investment in impaired loans, presented by class

Impaired Loans—The Company's recorded investment in impaired loans, presented by class, were as follows ($ in thousands)(1):



	As of March 31, 2014							As of December 31, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Senior mortgages	$	94,013	$	93,286	$	—		$	3,012	$	2,992	$	—
With an allowance recorded:
Senior mortgages	$	505,745	$	502,319	$	(297,173	)	$	650,337	$	645,463	$	(304,544	)
Corporate/Partnership loans	88,054		88,027		(41,903		)	99,076		99,067		(43,460		)
Subtotal	$	593,799	$	590,346	$	(339,076	)	$	749,413	$	744,530	$	(348,004	)
Total:
Senior mortgages	$	599,758	$	595,605	$	(297,173	)	$	653,349	$	648,455	$	(304,544	)
Corporate/Partnership loans	88,054		88,027		(41,903		)	99,076		99,067		(43,460		)
Total	$	687,812	$	683,632	$	(339,076	)	$	752,425	$	747,522	$	(348,004	)

Explanatory Note:

_______________________________________________________________________________

(1)

All of the Company's non-accrual loans are considered impaired and included in the table above. In addition, as of March 31, 2014 and December 31, 2013, certain loans modified through troubled debt restructurings with a recorded investment of $167.7 million and $231.8 million, respectively, are also included as impaired loans in accordance with GAAP although they are performing and on accrual status.

Schedule of average recorded investment in impaired loans and interest income recognized, presented by class

The Company's average recorded investment in impaired loans and interest income recognized, presented by class, were as follows ($ in thousands):



	For the Three Months Ended March 31,
	2014				2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	48,512	$	501	$	63,394	$	844
Corporate/Partnership loans	—		—		10,110		120
Subtotal	$	48,512	$	501	$	73,504	$	964
With an allowance recorded:
Senior mortgages	$	578,041	$	53	$	911,082	$	506
Subordinate mortgages	—		—		53,888		—
Corporate/Partnership loans	93,565		65		62,326		78
Subtotal	$	671,606	$	118	$	1,027,296	$	584
Total:
Senior mortgages	$	626,553	$	554	$	974,476	$	1,350
Subordinate mortgages	—		—		53,888		—
Corporate/Partnership loans	93,565		65		72,436		198
Total	$	720,118	$	619	$	1,100,800	$	1,548

Schedule of troubled debt restructurings, presented by class

The recorded investment in this loan was impacted by the modification as follows, presented by class ($ in thousands):



	For the Three Months Ended March 31,
	2014					2013
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Senior mortgages	—	$	—	$	—	1	$	72,674	$	65,000

Marketable securities

As of March 31, 2014, other lending investments—securities includes the following ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain (Loss)		Estimated Fair Value		Net Carrying Value
Available-for-Sale Securities
Municipal debt securities	$	1,040	$	1,040	$	47	$	1,087	$	1,087
Held-to-Maturity Securities
Corporate debt securities	149,176		152,379		—		152,379		152,379
Total	$	150,216	$	153,419	$	47	$	153,466	$	153,466