Loans Receivable and Other Lending Investments, net (Tables)

12 Months Ended

Dec. 31, 2018

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	2018			2017
Senior mortgages	$	760,749		$	791,152
Corporate/Partnership loans⁽¹⁾	148,583			488,921
Subordinate mortgages	10,161			9,495
Total gross carrying value of loans	919,493			1,289,568
Reserves for loan losses	(53,395		)	(78,489		)
Total loans receivable, net	866,098			1,211,079
Other lending investments—securities	122,126			89,576
Total loans receivable and other lending investments, net	$	988,224		$	1,300,655

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(1)	In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million. Refer to "Impaired Loans" section below.

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,
	2018			2017			2016
Reserve for loan losses at beginning of period	$	78,489		$	85,545		$	108,165
(Recovery of) provision for loan losses⁽¹⁾	16,937			(5,828		)	(12,514		)
Charge-offs	(42,031		)	(1,228		)	(10,106		)
Reserve for loan losses at end of period	$	53,395		$	78,489		$	85,545

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(1)	For the year ended December 31, 2016, the (recovery of) provision for loan losses includes recoveries of previously recorded asset-specific loan loss reserves of $13.7 million.

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, 2018
Loans	$	66,725		$	857,662		$	924,387
Less: Reserve for loan losses	(40,395		)	(13,000		)	(53,395		)
Total⁽³⁾	$	26,330		$	844,662		$	870,992
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

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(1)

The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.5 million and $0.7 million as of December 31, 2018 and 2017, respectively. The Company's loans individually evaluated for impairment primarily represent loans on non-accrual status; 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 $3.1 million and net premiums of $6.2 million as of December 31, 2018 and 2017, respectively.

(3)

The Company's recorded investment in loans as of December 31, 2018 and 2017 includes accrued interest of $4.9 million and $5.3 million, respectively, which is included in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheets. As of December 31, 2018 and 2017, the total amounts exclude $122.1 million and $89.6 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,
	2018			2017
	Performing Loans		Weighted Average Risk Ratings	Performing Loans		Weighted Average Risk Ratings
Senior mortgages	$	697,807	2.76	$	713,057	2.72
Corporate/Partnership loans	149,663		2.84	334,364		2.85
Subordinate mortgages	10,192		3.00	9,523		3.00
Total	$	857,662	2.77	$	1,056,944	2.77

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, was as follows ($ in thousands):



As of December 31, 2018	Current		Less Than and Equal to 90 Days		Greater Than 90 Days⁽¹⁾		Total Past Due		Total
Senior mortgages	$	703,807	$	—	$	60,725	$	60,725	$	764,532
Corporate/Partnership loans	149,663		—		—		—		149,663
Subordinate mortgages	10,192		—		—		—		10,192
Total	$	863,662	$	—	$	60,725	$	60,725	$	924,387
As of December 31, 2017
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

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(1)

As of December 31, 2018, the Company had two loans which were greater than 90 days delinquent and were in various stages of resolution, including legal and foreclosure-related proceedings and environmental matters, and ranged from 4.0 to 9.0 years outstanding. 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 and foreclosure-related proceedings and environmental matters, and ranged from 1.0 to 9.0 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, 2018							As of December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With an allowance recorded:
Senior mortgages	$	66,725	$	66,777	$	(40,395	)	$	81,343	$	81,431	$	(48,518	)
Corporate/Partnership loans	—		—		—			156,534		145,849		(12,471		)
Total	$	66,725	$	66,777	$	(40,395	)	$	237,877	$	227,280	$	(60,989	)

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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, was as follows ($ in thousands):



	For the Years Ended December 31,
	2018				2017				2016
	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	—		301		6,582		1,127		6,799		—
Subtotal	—		301		6,582		1,127		10,460		226
With an allowance recorded:
Senior mortgages	67,041		—		82,749		—		118,921		—
Corporate/Partnership loans	39,169		—		156,756		—		66,101		—
Subtotal	106,210		—		239,505		—		185,022		—
Total:
Senior mortgages	67,041		—		82,749		—		122,582		226
Corporate/Partnership loans	39,169		—		156,756		—		66,101		—
Subordinate mortgages	—		301		6,582		1,127		6,799		—
Total	$	106,210	$	301	$	246,087	$	1,127	$	195,482	$	226

Schedule of other lending investments - securities

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



	Face Value		Amortized Cost Basis		Net Unrealized Gain		Estimated Fair Value		Net Carrying Value
As of December 31, 2018
Available-for-Sale Securities
Municipal debt securities	$	21,185	$	21,185	$	476	$	21,661	$	21,661
Held-to-Maturity Securities
Debt securities	120,866		100,465		7		100,472		100,465
Total	$	142,051	$	121,650	$	483	$	122,133	$	122,126
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

Schedule of contractual maturities of the Company's securities

As of December 31, 2018, 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	$	20,859	$	20,866	$	—	$	—
After one year through 5 years	79,606		79,606		—		—
After 5 years through 10 years	—		—		—		—
After 10 years	—		—		21,185		21,661
Total	$	100,465	$	100,472	$	21,185	$	21,661