Loans Receivable and Other Lending Investments, net (Tables)

12 Months Ended

Dec. 31, 2016

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 December 31,
Type of Investment	2016			2015
Senior mortgages	$	940,738		$	975,915
Corporate/Partnership loans	490,389			643,270
Subordinate mortgages	24,941			28,676
Total gross carrying value of loans	1,456,068			1,647,861
Reserves for loan losses	(85,545		)	(108,165		)
Total loans receivable, net	1,370,523			1,539,696
Other lending investments—securities	79,916			62,289
Total loans receivable and other lending investments, net	$	1,450,439		$	1,601,985

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

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



	For the Years Ended December 31,
	2016			2015			2014
Reserve for loan losses at beginning of period	$	108,165		$	98,490		$	377,204
(Recovery of) provision for loan losses⁽¹⁾	(12,514		)	36,567			(1,714		)
Charge-offs	(10,106		)	(26,892		)	(277,000		)
Reserve for loan losses at end of period	$	85,545		$	108,165		$	98,490

______________________________________________________________________________


(1)	For the years ended December 31, 2016, 2015 and 2014, the provision for loan losses includes recoveries of previously recorded asset-specific loan loss reserves of $13.7 million, $0.6 million and $10.1 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⁾			Total
As of December 31, 2016
Loans	$	253,941		$	1,209,062		$	1,463,003
Less: Reserve for loan losses	(62,245		)	(23,300		)	(85,545		)
Total⁽³⁾	$	191,696		$	1,185,762		$	1,377,458
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⁽³⁾	$	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 $0.4 million and $0.2 million as of December 31, 2016 and 2015, 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. During the year ended December 31, 2016, the Company transferred a loan with a gross carrying value of $157.2 million to non-performing status due to the initiation of bankruptcy proceedings related to the collateral, which resulted in the release of $11.6 million of the general reserve. The Company performed a valuation and recorded a specific reserve of $12.5 million.


(2)	The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $1.9 million and $8.2 million as of December 31, 2016 and 2015, respectively.

(3)

The Company's recorded investment in loans as of December 31, 2016 and 2015 includes accrued interest of $6.9 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. As of December 31, 2016 and 2015, excludes $79.9 million and $62.3 million, respectively, of securities that are evaluated for impairment under ASC 320.

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 December 31,
	2016			2015
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	859,250	3.12	$	853,595	2.96
Corporate/Partnership loans	335,677		3.09	641,713		3.37
Subordinate mortgages	14,135		3.00	29,039		3.64
Total	$	1,209,062	3.11	$	1,524,347	3.15

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

The Company's recorded investment in loans, aged by payment status and presented by class, were as follows ($ in thousands):



As of December 31, 2016	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
Senior mortgages	$	868,505	$	—	$	76,677	$	76,677	$	945,182
Corporate/Partnership loans	335,677		—		157,146		157,146		492,823
Subordinate mortgages	24,998		—		—		—		24,998
Total	$	1,229,180	$	—	$	233,823	$	233,823	$	1,463,003
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 December 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.

Schedule of recorded investment in impaired loans, presented by class

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



	As of December 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:
Subordinate mortgages	$	10,862	$	10,846	$	—		$	—	$	—	$	—
Subtotal	$	10,862	$	10,846	$	—		$	—	$	—	$	—
With an allowance recorded:
Senior mortgages	$	85,933	$	85,780	$	(49,774	)	$	126,754	$	125,776	$	(69,627	)
Corporate/Partnership loans	157,146		146,783		(12,471		)	5,738		5,738		(2,538		)
Subtotal	$	243,079	$	232,563	$	(62,245	)	$	132,492	$	131,514	$	(72,165	)
Total:
Senior mortgages	$	85,933	$	85,780	$	(49,774	)	$	126,754	$	125,776	$	(69,627	)
Corporate/Partnership loans	157,146		146,783		(12,471		)	5,738		5,738		(2,538		)
Subordinate mortgages	10,862		10,846		—			—		—		—
Total	$	253,941	$	243,409	$	(62,245	)	$	132,492	$	131,514	$	(72,165	)

_______________________________________________________________________________


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

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 Years Ended December 31,
	2016				2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Senior mortgages	$	3,661	$	226	$	—	$	—	$	35,659	$	1,922
Subordinate mortgages	6,799		—		—		—		—		—
Subtotal	10,460		226		—		—		35,659		1,922
With an allowance recorded:
Senior mortgages	118,921		—		129,135		38		334,351		158
Corporate/Partnership loans	66,101		—		24,252		12		52,963		181
Subtotal	185,022		—		153,387		50		387,314		339
Total:
Senior mortgages	122,582		226		129,135		38		370,010		2,080
Corporate/Partnership loans	66,101		—		24,252		12		52,963		181
Subordinate mortgages	6,799		—		—		—		—		—
Total	$	195,482	$	226	$	153,387	$	50	$	422,973	$	2,261

Schedule of other lending investments - 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 December 31, 2016
Available-for-Sale Securities
Municipal debt securities	$	21,240	$	21,240	$	426	$	21,666	$	21,666
Held-to-Maturity Securities
Debt securities	58,454		58,250		2,753		61,003		58,250
Total	$	79,694	$	79,490	$	3,179	$	82,669	$	79,916
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
Debt securities	54,549		61,128		71		61,199		61,128
Total	$	55,559	$	62,138	$	222	$	62,360	$	62,289

Schedule of contractual maturities of the Company's securities

As of December 31, 2016, the contractual maturities of the Company's securities were as follows ($ in thousands):



	Held-to-Maturity Securities				Available-for-Sale Securities
	Amortized Cost Basis		Estimated Fair Value		Amortized Cost Basis		Estimated Fair Value
Maturities
Within one year	$	—	$	—	$	—	$	—
After one year through 5 years	58,250		61,003		—		—
After 5 years through 10 years	—		—		—		—
After 10 years	—		—		21,240		21,666
Total	$	58,250	$	61,003	$	21,240	$	21,666