Loans receivable are recorded on our Consolidated Balance Sheets in real estate loans receivable, net of credit allowance, or for non-real estate loans receivable, in receivables and other assets. Real estate loans receivable consists of mortgage loans and other real estate loans, which are primarily collateralized by a first, second or third mortgage lien, a leasehold mortgage on, or an assignment or pledge of the partnership interest in, the related properties, as well as corporate guarantees and/or personal guarantees. Non-real estate loans are generally corporate loans with no real estate backing. Interest income on loans is recognized as earned based on the principal amount outstanding, subject to an evaluation of the risk of credit loss. Accrued interest receivable was $39,051,000 and $23,497,000 as of June 30, 2026 and December 31, 2025, respectively, and is included in receivables and other assets on the Consolidated Balance Sheets.


	June 30, 2026		December 31, 2025
Mortgage loans	$	2,043,538	$	1,021,355
Other real estate loans	931,104		827,742
Allowance for credit losses on real estate loans receivable	(21,933)		(17,887)
Real estate loans receivable, net of credit allowance	2,952,709		1,831,210
Non-real estate loans	290,724		258,205
Allowance for credit losses on non-real estate loans receivable	(6,896)		(7,150)
Non-real estate loans receivable, net of credit allowance	283,828		251,055
Total loans receivable, net of credit allowance	$	3,236,537	$	2,082,265


	Six Months Ended
	June 30, 2026		June 30, 2025
Advances on loans receivable	$	1,876,185	$	40,244
Less: Receipts on loans receivable	827,881		162,039
Net cash advances (receipts) on loans receivable	$	1,048,304	$	(121,795)

In March 2026, we provided two mortgage loans collateralized by a first mortgage lien in the aggregate principal amount of $895,000,000, each collateralized by a portfolio of skilled nursing facilities. The loans bear interest at 8% per annum.

The allowance for credit losses on loans receivable is maintained at a level believed adequate to absorb potential losses in our loans receivable. The determination of the credit allowance is based on a quarterly evaluation of all outstanding loans, including general economic conditions and estimated collectability of loan payments. We evaluate the collectability of our loans receivable based on a combination of credit quality indicators, including, but not limited to, payment status, historical loan charge-offs, financial strength of the borrower and guarantors and nature, extent and value of the underlying collateral.

A loan is considered to have deteriorated credit quality when, based on current information and events, it is probable that we will be unable to collect all amounts due as scheduled according to the contractual terms of the loan agreement. For those loans we identified as having deteriorated credit quality, we determine the amount of credit loss on an individual basis. Placement on non-accrual status may be required. Consistent with this definition, all loans on non-accrual status are deemed to have deteriorated credit quality. To the extent circumstances improve and the risk of collectability is diminished, we may return these loans to income accrual status. While a loan is on non-accrual status, any cash receipts are applied against the outstanding principal balance.

For the remaining loans, we generally assess credit loss on a collective pool basis and use our historical loss experience for similar loans and expectations of future performance of the borrowers to determine the reserve for credit losses. The following is a summary of our loans by credit loss category (in thousands):


	June 30, 2026
Loan category	Years of Origination	Loan Carrying Value		Allowance for Credit Loss		Net Loan Balance		No. of Loans
Deteriorated loans(1)	2007 - 2019	$	134,059	$	(8,049)	$	126,010	5
Collective loan pool	2010 - 2021	80,590		(535)		80,055		15
Collective loan pool	2022	62,104		(412)		61,692		11
Collective loan pool	2023	45,167		(300)		44,867		5
Collective loan pool	2024	59,348		(394)		58,954		7
Collective loan pool	2025	1,100,320		(7,302)		1,093,018		13
Collective loan pool	2026	1,783,778		(11,837)		1,771,941		18
Total loans		$	3,265,366	$	(28,829)	$	3,236,537	74

(1) Interest recognized on loans classified as deteriorated loans as of the end of the respective reporting period was $3,874,000 and $7,607,000 for the three and six months ended June 30, 2026, respectively.

During the year ended December 31, 2025, we reclassified the entirety of the secured notes receivable from Genesis to the deteriorated loan category following Genesis’s initiation of Chapter 11 bankruptcy proceedings. The carrying value of the outstanding notes as of June 30, 2026 is $124,681,000. The notes receivable were evaluated on an individual basis to determine the appropriateness of the allowance for credit losses, which included an estimate of collectability, collateral valuation and the anticipated recovery through the bankruptcy process.

The total allowance for credit losses balance is deemed sufficient to absorb expected losses relating to our loan portfolio. The following is a summary of the activity within the allowance for credit losses on loans receivable for the periods presented (in thousands):


	Six Months Ended
	June 30, 2026		June 30, 2025
Balance at beginning of period	$	25,037	$	33,797
Provision for loan losses, net	3,815		(3,120)



Effect of foreign currency	(23)		1,009
Balance at end of period	$	28,829	$	31,686