Loans Receivable and Other Lending Investments, net

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, 2016			December 31, 2015
Senior mortgages	$	1,010,329		$	975,915
Corporate/Partnership loans	664,564			643,270
Subordinate mortgages	25,454			28,676
Total gross carrying value of loans	1,700,347			1,647,861
Reserves for loan losses	(109,671		)	(108,165		)
Total loans receivable, net	1,590,676			1,539,696
Other lending investments—securities	46,711			62,289
Total loans receivable and other lending investments, net⁽¹⁾	$	1,637,387		$	1,601,985

_______________________________________________________________________________


(1)	The Company's recorded investment in loans as of March 31, 2016 and December 31, 2015 includes accrued interest of $10.1 million and $9.0 million, respectively, which are included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets.

During the three months ended March 31, 2015, the Company sold a loan with a carrying value of $5.5 million. No gain or loss was recognized as a result of the transaction.

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,
	2016		2015
Reserve for loan losses at beginning of period	$	108,165	$	98,490
Provision for loan losses⁽¹⁾	1,506		4,293
Reserve for loan losses at end of period	$	109,671	$	102,783

_______________________________________________________________________________


(1)	For the three months ended March 31, 2015 the provision for loan losses includes recoveries of previously recorded loan loss reserves of $0.2 million.

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⁾			Total
As of March 31, 2016
Loans	$	141,420		$	1,569,029		$	1,710,449
Less: Reserve for loan losses	(73,071		)	(36,600		)	(109,671		)
Total	$	68,349		$	1,532,429		$	1,600,778
As of December 31, 2015
Loans	$	132,492		$	1,524,347		$	1,656,839
Less: Reserve for loan losses	(72,165		)	(36,000		)	(108,165		)
Total	$	60,327		$	1,488,347		$	1,548,674

_______________________________________________________________________________

(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.2 million as of March 31, 2016 and December 31, 2015. 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 totaling net discounts of $6.5 million and $8.2 million as of March 31, 2016 and December 31, 2015, respectively.

Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain and there can be no assurance that actual performance will be similar to current expectation.

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, 2016			As of December 31, 2015
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	879,019	2.96	$	853,595	2.96
Corporate/Partnership loans	664,210		3.31	641,713		3.37
Subordinate mortgages	25,800		3.92	29,039		3.64
Total	$	1,569,029	3.13	$	1,524,347	3.15

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⁽¹⁾		Total Past Due		Total
As of March 31, 2016
Senior mortgages	$	889,128	$	9,083	$	116,825	$	125,908	$	1,015,036
Corporate/Partnership loans	669,613		—		—		—		669,613
Subordinate mortgages	25,800		—		—		—		25,800
Total	$	1,584,541	$	9,083	$	116,825	$	125,908	$	1,710,449
As of December 31, 2015
Senior mortgages	$	864,099	$	—	$	116,250	$	116,250	$	980,349
Corporate/Partnership loans	647,451		—		—		—		647,451
Subordinate mortgages	29,039		—		—		—		29,039
Total	$	1,540,589	$	—	$	116,250	$	116,250	$	1,656,839

_______________________________________________________________________________

(1)

As of March 31, 2016, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal proceedings, environmental concerns and foreclosure-related proceedings, and ranged from 1.0 to 8.0 years outstanding. As of December 31, 2015, the Company had four loans which were greater than 90 days delinquent and were in various stages of resolution, including legal proceedings, environmental concerns and foreclosure-related proceedings, and ranged from 1.0 to 7.0 years outstanding.

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



	As of March 31, 2016							As of December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Senior mortgages	$	9,083	$	9,082	$	—		$	—	$	—	$	—
With an allowance recorded:
Senior mortgages	126,933		125,882		(70,533		)	126,754		125,776		(69,627		)
Corporate/Partnership loans	5,404		5,402		(2,538		)	5,738		5,738		(2,538		)
Subtotal	132,337		131,284		(73,071		)	132,492		131,514		(72,165		)
Total	$	141,420	$	140,366	$	(73,071	)	$	132,492	$	131,514	$	(72,165	)

____________________________________________________________


(1)	All of the Company's non-accrual loans are considered impaired and included in the table above.

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,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	4,542	$	—	$	—	$	—
With an allowance recorded:
Senior mortgages	126,843		—		130,491		17
Corporate/Partnership loans	5,571		—		7,868		9
Subtotal	132,414		—		138,359		26
Total	$	136,956	$	—	$	138,359	$	26

Securities—Other lending investments—securities includes the following ($ in thousands):



	Face Value		Amortized Cost Basis		Net Unrealized Gain (Loss)		Estimated Fair Value		Net Carrying Value
As of March 31, 2016
Available-for-Sale Securities
Municipal debt securities	$	5,365	$	5,365	$	171	$	5,536	$	5,536
Held-to-Maturity Securities
Corporate debt securities	41,563		41,175		—		41,204		41,175
Total	$	46,928	$	46,540	$	171	$	46,740	$	46,711
As of December 31, 2015
Available-for-Sale Securities
Municipal debt securities	$	1,010	$	1,010	$	151	$	1,161	$	1,161
Held-to-Maturity Securities
Corporate debt securities	54,549		61,128		—		61,199		61,128
Total	$	55,559	$	62,138	$	151	$	62,360	$	62,289