Due to the uncertainty with respect to LREIT's ability to collect rental revenues and with respect to the timing and extent of business interruption insurance proceeds in the wake of the wildfire, LREIT withheld the June 2016 debt service payments related to the mortgages on all of its Fort McMurray properties and focused its limited cash resources on the restoration and leasing of its properties. Consequently, LREIT was in default of the debt service requirements on ten mortgage loans with an aggregate principal balance of $184.7 million at June 30, 2016. Subsequent to June 30, 2016, LREIT repaid the amounts withheld for one mortgage loan with a principal balance of $24.9 million in full and is no longer in default of the terms of its forbearance agreement.