Loans Receivable and Other Lending Investments, net (Tables)

12 Months Ended

Dec. 31, 2017

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	2017			2016
Senior mortgages	$	791,152		$	940,738
Corporate/Partnership loans	488,921			490,389
Subordinate mortgages	9,495			24,941
Total gross carrying value of loans	1,289,568			1,456,068
Reserves for loan losses	(78,489		)	(85,545		)
Total loans receivable, net	1,211,079			1,370,523
Other lending investments—securities	89,576			79,916
Total loans receivable and other lending investments, net	$	1,300,655		$	1,450,439

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,
	2017			2016			2015
Reserve for loan losses at beginning of period	$	85,545		$	108,165		$	98,490
(Recovery of) provision for loan losses⁽¹⁾	(5,828		)	(12,514		)	36,567
Charge-offs	(1,228		)	(10,106		)	(26,892		)
Reserve for loan losses at end of period	$	78,489		$	85,545		$	108,165

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(1)	For the years ended December 31, 2016 and 2015, the provision for loan losses includes recoveries of previously recorded asset-specific loan loss reserves of $13.7 million and $0.6 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⁾			Total
As of December 31, 2017
Loans	$	237,877		$	1,056,944		$	1,294,821
Less: Reserve for loan losses	(60,989		)	(17,500		)	(78,489		)
Total⁽³⁾	$	176,888		$	1,039,444		$	1,216,332
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

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(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.7 million and $0.4 million as of December 31, 2017 and 2016, 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 premiums of $6.2 million and $1.9 million as of December 31, 2017 and 2016, respectively.

(3)

The Company's recorded investment in loans as of December 31, 2017 and 2016 includes accrued interest of $5.3 million and $6.9 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, 2017 and 2016, excludes $89.6 million and $79.9 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,
	2017			2016
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	713,057	2.72	$	859,250	3.12
Corporate/Partnership loans	334,364		2.85	335,677		3.09
Subordinate mortgages	9,523		3.00	14,135		3.00
Total	$	1,056,944	2.77	$	1,209,062	3.11

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, 2017	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
Senior mortgages	$	719,057	$	—	$	75,343	$	75,343	$	794,400
Corporate/Partnership loans	334,364		—		156,534		156,534		490,898
Subordinate mortgages	9,523		—		—		—		9,523
Total	$	1,062,944	$	—	$	231,877	$	231,877	$	1,294,821
As of December 31, 2016
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

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(1)

As of December 31, 2017, 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 9.0 years outstanding. 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.

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, 2017							As of December 31, 2016
	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	$	81,343	$	81,431	$	(48,518	)	$	85,933	$	85,780	$	(49,774	)
Corporate/Partnership loans	156,534		145,849		(12,471		)	157,146		146,783		(12,471		)
Subtotal	$	237,877	$	227,280	$	(60,989	)	$	243,079	$	232,563	$	(62,245	)
Total:
Senior mortgages	$	81,343	$	81,431	$	(48,518	)	$	85,933	$	85,780	$	(49,774	)
Corporate/Partnership loans	156,534		145,849		(12,471		)	157,146		146,783		(12,471		)
Subordinate mortgages	—		—		—			10,862		10,846		—
Total	$	237,877	$	227,280	$	(60,989	)	$	253,941	$	243,409	$	(62,245	)

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(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,
	2017				2016				2015
	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	$	—	$	—
Subordinate mortgages	6,582		1,127		6,799		—		—		—
Subtotal	6,582		1,127		10,460		226		—		—
With an allowance recorded:
Senior mortgages	82,749		—		118,921		—		129,135		38
Corporate/Partnership loans	156,756		—		66,101		—		24,252		12
Subtotal	239,505		—		185,022		—		153,387		50
Total:
Senior mortgages	82,749		—		122,582		226		129,135		38
Corporate/Partnership loans	156,756		—		66,101		—		24,252		12
Subordinate mortgages	6,582		1,127		6,799		—		—		—
Total	$	246,087	$	1,127	$	195,482	$	226	$	153,387	$	50

Schedule of other lending investments - securities

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



	Face Value		Amortized Cost Basis		Net Unrealized Gain		Estimated Fair Value		Net Carrying Value
As of December 31, 2017
Available-for-Sale Securities
Municipal debt securities	$	21,230	$	21,230	$	1,612	$	22,842	$	22,842
Held-to-Maturity Securities
Debt securities	66,618		66,734		1,581		68,315		66,734
Total	$	87,848	$	87,964	$	3,193	$	91,157	$	89,576
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

Schedule of contractual maturities of the Company's securities

As of December 31, 2017, 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	$	48,468	$	49,451	$	—	$	—
After one year through 5 years	18,266		18,864		—		—
After 5 years through 10 years	—		—		—		—
After 10 years	—		—		21,230		22,842
Total	$	66,734	$	68,315	$	21,230	$	22,842