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Loans Receivable and Other Lending Investments, net | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Loans Receivable and Other Lending Investments, net | 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 December 31,
Type of Investment | 2019 |  | 2018
Senior mortgages | $ | 572,584 |  |  | $ | 760,749 |
Corporate/Partnership loans | 119,818 |  |  | 148,583 |
Subordinate mortgages | 10,877 |  |  | 10,161 |
Total gross carrying value of loans | 703,279 |  |  | 919,493 |
Reserves for loan losses | (28,634 | ) |  | (53,395 | )
Total loans receivable, net | 674,645 |  |  | 866,098 |
Other lending investments(1) | 153,216 |  |  | 122,126 |
Total loans receivable and other lending investments, net | $ | 827,861 |  |  | $ | 988,224 |
_______________________________________________________________________________
(1) | As of December 31, 2019, includes a $44.3 million financing receivable related to the acquisition of bowling centers from one of the Company's lessees (refer to Note 5).
Reserve for Loan Losses—Changes in the Company's reserve for loan losses were as follows ($ in thousands):
| For the Years Ended December 31,
| 2019 |  | 2018 |  | 2017
Reserve for loan losses at beginning of period | $ | 53,395 |  |  | $ | 78,489 |  |  | $ | 85,545 |
Provision for (recovery of) loan losses | 6,482 |  |  | 16,937 |  |  | (5,828 | )
Charge-offs | (31,243 | ) |  | (42,031 | ) |  | (1,228 | )
Reserve for loan losses at end of period | $ | 28,634 |  |  | $ | 53,395 |  |  | $ | 78,489 |
_______________________________________________________________________________
(1) | During the year ended December 31, 2019, the Company charged-off $19.2 million from the specific reserve due to the resolution of a non-performing loan and $12.0 million due to the deterioration of the collateral on a separate non-performing loan.
The Company's recorded investment in loans (comprised of a loan's carrying value plus accrued interest) and the associated reserve for loan losses were as follows ($ in thousands):
| Individually Evaluated for Impairment(1) |  | Collectively Evaluated for Impairment(2) |  | Total
As of December 31, 2019 |  |  |  |  |
Loans | $ | 37,820 |  |  | $ | 668,769 |  |  | $ | 706,589 |
Less: Reserve for loan losses | (21,701 | ) |  | (6,933 | ) |  | (28,634 | )
Total(3) | $ | 16,119 |  |  | $ | 661,836 |  |  | $ | 677,955 |
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 |
_______________________________________________________________________________
(1) | The carrying value of these loans include unamortized discounts, premiums, deferred fees and costs totaling net discounts of $0.1 million and $0.5 million as of December 31, 2019 and 2018, 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 $0.7 million and $3.1 million as of December 31, 2019 and 2018, respectively.
(3) | The Company's recorded investment in loans as of December 31, 2019 and 2018 includes accrued interest of $3.3 million and $4.9 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, 2019, excludes a $44.3 million financing receivable (refer to Note 5). As of December 31, 2019 and 2018, the total amounts exclude $108.9 million and $122.1 million, respectively, of securities that are evaluated for impairment under ASC 320.
Credit Characteristics—As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. Risk ratings, which range from 1 (lower risk) to 5 (higher risk), are based on judgments which are inherently uncertain and there can be no assurance that actual performance will be similar to current expectation. The Company's recorded investment in performing loans, presented by class and by credit quality, as indicated by risk rating, was as follows ($ in thousands):
| As of December 31,
| 2019 |  | 2018
| Performing Loans |  | Weighted Average Risk Ratings |  | Performing Loans |  | Weighted Average Risk Ratings
Senior mortgages | $ | 537,201 |  |  | 2.71 |  |  | $ | 697,807 |  |  | 2.76 |
Corporate/Partnership loans | 120,658 |  |  | 2.83 |  |  | 149,663 |  |  | 2.84 |
Subordinate mortgages | 10,910 |  |  | 3.00 |  |  | 10,192 |  |  | 3.00 |
Total | $ | 668,769 |  |  | 2.73 |  |  | $ | 857,662 |  |  | 2.77 |
The Company's recorded investment in loans, aged by payment status and presented by class, was as follows ($ in thousands):
As of December 31, 2019 | Current |  | Less Than and Equal to 90 Days |  | Greater Than 90 Days(1) |  | Total Past Due |  | Total
Senior mortgages | $ | 537,201 |  |  | $ | — |  |  | $ | 37,820 |  |  | $ | 37,820 |  |  | $ | 575,021 |
Corporate/Partnership loans | 120,658 |  |  | — |  |  | — |  |  | — |  |  | 120,658 |
Subordinate mortgages | 10,910 |  |  | — |  |  | — |  |  | — |  |  | 10,910 |
Total | $ | 668,769 |  |  | $ | — |  |  | $ | 37,820 |  |  | $ | 37,820 |  |  | $ | 706,589 |
As of December 31, 2018 |  |  |  |  |  |  |  |  |
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 |
_______________________________________________________________________________
(1) | As of December 31, 2019, the Company had one loan which was greater than 90 days delinquent and was in various stages of resolution, including legal and environmental matters, and was 10.5 years outstanding. 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.
Impaired Loans—In the second quarter 2018, the Company resolved a non-performing loan with a carrying value of $145.8 million. The Company received a $45.8 million cash payment and a preferred equity investment with a face value of $100.0 million that is mandatorily redeemable in five years. The Company recorded the preferred equity at its fair value of $77.0 million and are accruing interest over the expected duration of the investment. In addition, the Company recorded a $21.4 million loan loss provision and simultaneously charged-off of the remaining unpaid balance. The Company's recorded investment in impaired loans, presented by class, was as follows ($ in thousands)(1):
| As of December 31, 2019 |  | As of December 31, 2018
| Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance |  | Recorded Investment |  | Unpaid Principal Balance |  | Related Allowance
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Senior mortgages | $ | 37,820 |  |  | $ | 37,923 |  |  | $ | (21,701 | ) |  | $ | 66,725 |  |  | $ | 66,777 |  |  | $ | (40,395 | )
Total | $ | 37,820 |  |  | $ | 37,923 |  |  | $ | (21,701 | ) |  | $ | 66,725 |  |  | $ | 66,777 |  |  | $ | (40,395 | )
_______________________________________________________________________________
(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, was as follows ($ in thousands):
| For the Years Ended December 31,
| 2019 |  | 2018 |  | 2017
| Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Subordinate mortgages | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 301 |  |  | $ | 6,582 |  |  | $ | 1,127 |
Subtotal | — |  |  | — |  |  | — |  |  | 301 |  |  | 6,582 |  |  | 1,127 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
Senior mortgages | 38,556 |  |  | — |  |  | 67,041 |  |  | — |  |  | 82,749 |  |  | — |
Corporate/Partnership loans | — |  |  | — |  |  | 39,169 |  |  | — |  |  | 156,756 |  |  | — |
Subtotal | 38,556 |  |  | — |  |  | 106,210 |  |  | — |  |  | 239,505 |  |  | — |
Total: |  |  |  |  |  |  |  |  |  |  |
Senior mortgages | 38,556 |  |  | — |  |  | 67,041 |  |  | — |  |  | 82,749 |  |  | — |
Corporate/Partnership loans | — |  |  | — |  |  | 39,169 |  |  | — |  |  | 156,756 |  |  | — |
Subordinate mortgages | — |  |  | — |  |  | — |  |  | 301 |  |  | 6,582 |  |  | 1,127 |
Total | $ | 38,556 |  |  | $ | — |  |  | $ | 106,210 |  |  | $ | 301 |  |  | $ | 246,087 |  |  | $ | 1,127 |
There was no interest income related to the resolution of non-performing loans recorded during the years ended December 31, 2019, 2018 and 2017. Other lending investments—Other lending investments includes the following securities ($ in thousands):
| Face Value |  | Amortized Cost Basis |  | Net Unrealized Gain |  | Estimated Fair Value |  | Net Carrying Value
As of December 31, 2019 |  |  |  |  |  |  |  |  |
Available-for-Sale Securities |  |  |  |  |  |  |  |  |
Municipal debt securities | $ | 21,140 |  |  | $ | 21,140 |  |  | $ | 2,756 |  |  | $ | 23,896 |  |  | $ | 23,896 |
Held-to-Maturity Securities |  |  |  |  |  |  |  |  |
Debt securities | 100,000 |  |  | 84,981 |  |  | — |  |  | 84,981 |  |  | 84,981 |
Total | $ | 121,140 |  |  | $ | 106,121 |  |  | $ | 2,756 |  |  | $ | 108,877 |  |  | $ | 108,877 |
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, 2019, 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 | 84,981 |  |  | 84,981 |  |  | — |  |  | — |
After 5 years through 10 years | — |  |  | — |  |  | — |  |  | — |
After 10 years | — |  |  | — |  |  | 21,140 |  |  | 23,896 |
Total | $ | 84,981 |  |  | $ | 84,981 |  |  | $ | 21,140 |  |  | $ | 23,896 |

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