☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2020
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Class A common stock, par value $0.01 per share | BXMT | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||
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Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
ITEM 1. 2 2 3 4 5 6 8 37 54 ITEM 4. 56 PART II.ITEM 1.57ITEM 1A.57 57 57 ITEM 4. 57 ITEM 5.57ITEM 6.5859
Assets Cash and cash equivalents Restricted cash Loans receivable, net Other assets Total Assets Liabilities and Equity Secured debt agreements, net Loan participations sold, net Securitized debt obligations, net Convertible notes, net Other liabilities Total Liabilities Commitments and contingencies Equity Class A common stock, $0.01 par value, 200,000,000 shares authorized, 94,828,007 and 94,540,263 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively Additional paid-in capital Accumulated other comprehensive loss Accumulated deficit Total Blackstone Mortgage Trust, Inc. stockholders’ equity Non-controlling interests Total Equity Total Liabilities and Equity VIEs. Income from loans and other investments Interest and related income Less: Interest and related expenses Income from loans and other investments, net Other expenses Management and incentive fees General and administrative expenses Total other expenses Gain on investments at fair value Income from equity investment in unconsolidated subsidiary Income before income taxes Income tax provision Net income Net income attributable to non-controlling interests Net income attributable to Blackstone Mortgage Trust, Inc. Net income per share of common stock basic and diluted Weighted-average shares of common stock outstanding, basic and diluted Dividends declared per share of common stock Net income Other comprehensive income Unrealized gain (loss) on foreign currency remeasurement Realized and unrealized (loss) gain on derivative financial instruments Other comprehensive income (loss) Comprehensive income Comprehensive income attributable to non-controlling interests Comprehensive income attributable to Blackstone Mortgage Trust, Inc. Balance at December 31, 2015 Shares of class A common stock issued, net Restricted class A common stock earned Dividends reinvested Deferred directors’ compensation Other comprehensive loss Net income Dividends declared on common stock Distributions to non-controlling interests Balance at September 30, 2016 Balance at December 31, 2016 Shares of class A common stock issued, net Restricted class A common stock earned Issuance of convertible notes Dividends reinvested Deferred directors’ compensation Other comprehensive income Net income Contributions from non-controlling interests Dividends declared on common stock Balance at September 30, 2017 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Non-cash compensation expense Amortization of deferred fees on loans Amortization of deferred financing costs and premiums/discount on debt obligations Income from equity investment in unconsolidated subsidiary Distributions of income from unconsolidated subsidiary Gain on investments at fair value Changes in assets and liabilities, net Other assets Other liabilities Net cash provided by operating activities Cash flows from investing activities Origination and fundings of loans receivable Principal collections and sales proceeds from loans receivable and other assets Origination and exit fees received on loans receivable Receipts under derivative financial instruments Payments under derivative financial instruments Return of collateral deposited under derivative agreements Collateral deposited under derivative agreements Net cash (used in) provided by investing activities Cash flows from financing activities Borrowings under secured debt agreements Repayments under secured debt agreements Proceeds from sale of loan participations Repayment of loan participations Payment of deferred financing costs Receipts under derivative financial instruments Payments under derivative financial instruments Contributions from non-controlling interests Distributions to non-controlling interests Net proceeds from issuance of convertible notes Net proceeds from issuance of class A common stock Dividends paid on class A common stock Net cash provided by (used in) financing activities Net increase (decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of period Effects of currency translation on cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at end of period Supplemental disclosure of cash flows information Payments of interest Payments of income taxes Supplemental disclosure of non-cash investing and financing activities Dividends declared, not paid Loan principal payments held by servicer, net Consolidation of loans receivable of a VIE Consolidation of securitized debt obligations of a VIE September 30, December 31, 2017 2016 $ 61,221 $ 75,567 32,864 — 9,637,152 8,692,978 45,680 44,070 $ 9,776,917 $ 8,812,615 $ 6,079,135 $ 5,716,354 33,193 348,077 474,298 — 562,741 166,762 101,758 87,819 7,251,125 6,319,012 — — 948 945 3,109,094 3,089,997 (32,362 ) (56,202 ) (558,066 ) (541,137 ) 2,519,614 2,493,603 6,178 — 2,525,792 2,493,603 $ 9,776,917 $ 8,812,615 $ $ ) $ $ $ $ ) ) ) $ $ sheetsheets as of SeptemberJune 30, 2017 includes2020 and December 31, 2019 include assets of a consolidated variable interest entity,entities, or VIE,VIEs, that can only be used to settle obligations of theeach respective VIE, and liabilities of a consolidated VIEVIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of SeptemberJune 30, 2017,2020 and December 31, 2019, assets of the VIEconsolidated VIEs totaled $500.8 million$2.7 billion and $1.4 billion, respectively, and liabilities of the VIEconsolidated VIEs totaled $474.9 million. We did not consolidate any VIEs as of December 31, 2016.$2.2 billion and $1.2 billion, respectively. Refer to Note 1615 for additional discussion of the VIE. Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 146,446 $ 128,190 $ 391,787 $ 381,686 67,891 45,373 168,917 139,819 78,555 82,817 222,870 241,867 13,243 13,701 40,557 43,161 7,419 7,414 22,219 20,990 20,662 21,115 62,776 64,151 — 2,824 — 13,413 — 2,060 — 2,192 57,893 66,586 160,094 193,321 83 194 265 281 57,810 66,392 159,829 193,040 (88 ) (1,598 ) (88 ) (8,119 ) $ 57,722 $ 64,794 $ 159,741 $ 184,921 $ 0.61 $ 0.69 $ 1.68 $ 1.97 95,013,087 94,071,537 95,004,188 94,067,923 $ 0.62 $ 0.62 $ 1.86 $ 1.86 $ $ $ $ ) ) ) ) ) ) ) ) $ $ $ ) $ $ $ $ ) $ Three Months Ended
September 30, Nine Months Ended
September 30, 2017 2016 2017 2016 $ 57,810 $ 66,392 $ 159,829 $ 193,040 16,175 (10,128 ) 43,990 (25,472 ) (8,029 ) 5,882 (20,150 ) 11,841 8,146 (4,246 ) 23,840 (13,631 ) 65,956 62,146 183,669 179,409 (88 ) (1,598 ) (88 ) (8,119 ) $ 65,868 $ 60,548 $ 183,581 $ 171,290 $ $ $ ) $ ) ) ) ) ) ) ) ) ) ) $ $ $ ) $ Blackstone Mortgage Trust, Inc. Class A
Common
Stock Additional
Paid-In
Capital Accumulated Other
Comprehensive
(Loss) Income Accumulated
Deficit Stockholders’
Equity Non-controlling
Interests Total
Equity $ 937 $ 3,070,200 $ (32,758 ) $ (545,791 ) $ 2,492,588 $ 13,143 $ 2,505,731 2 — — — 2 — 2 — 14,190 — — 14,190 — 14,190 — 276 — (256 ) 20 — 20 — 282 — — 282 — 282 — — (13,631 ) — (13,631 ) — (13,631 ) — — — 184,921 184,921 8,119 193,040 — — — �� (174,678 ) (174,678 ) — (174,678 ) — — — — — (20,158 ) (20,158 ) $ 939 $ 3,084,948 $ (46,389 ) $ (535,804 ) $ 2,503,694 $ 1,104 $ 2,504,798 $ 945 $ 3,089,997 $ (56,202 ) $ (541,137 ) $ 2,493,603 $ — $ 2,493,603 3 — — — 3 — 3 — 17,493 — — 17,493 — 17,493 — 964 — — 964 — 964 — 327 — (296 ) 31 — 31 — 313 — — 313 — 313 — — 23,840 — 23,840 — 23,840 — — — 159,741 159,741 88 159,829 — — — — — 6,090 6,090 — — — (176,374 ) (176,374 ) — (176,374 ) $ 948 $ 3,109,094 $ (32,362 ) $ (558,066 ) $ 2,519,614 $ 6,178 $ 2,525,792 $ $ $ ) $ ) $ $ $ ) ) ) ) ) ) ) ) ) ) ) ) ) $ $ $ $ ) $ $ $ ) ) ) ) ) ) ) ) ) $ $ $ $ ) $ $ $ Cash FlowsChanges in Equity (Unaudited) Nine Months Ended
September 30, 2017 2016 $ 159,829 $ 193,040 17,809 16,517 (28,887 ) (31,594 ) 16,356 15,129 — (2,192 ) — 8,167 — (13,413 ) (219 ) 8,315 11,651 (6,405 ) 176,539 187,564 (2,314,721 ) (2,300,636 ) 1,976,271 3,054,821 38,434 35,388 6,115 — (18,115 ) — 8,980 — (16,651 ) — (319,687 ) 789,573 continued… $ $ $ ) $ ) $ $ $ ) ) ) ) ) ) $ $ $ ) $ ) $ $ $ ) ) ) ) ) ) $ $ $ ) $ ) $ $ $ Nine Months Ended
September 30, 2017 2016 $ 2,776,058 $ 2,225,895 (2,481,250 ) (2,988,217 ) 33,193 54,441 (381,310 ) (92,000 ) (13,591 ) (12,564 ) — 31,668 — (14,266 ) 6,090 — — (20,158 ) 394,074 — 31 20 (176,195 ) (174,549 ) 157,100 (989,730 ) 13,952 (12,593 ) 75,567 106,005 4,566 1,526 $ 94,085 $ 94,938 $ (141,124 ) $ (123,564 ) $ (220 ) $ (131 ) $ (58,793 ) $ (58,388 ) $ 513 $ 9,515 $ 500,000 $ — $ (474,620 ) $ — $ ) $ ) ) ) ) ) ) ) ) ) ) ) )
Six Months Ended June 30, | ||||||||||||
2020 | 2019 | |||||||||||
Cash flows from financing activities | ||||||||||||
Borrowings under secured debt agreements | $ | 2,200,042 | $ | 1,464,038 | ||||||||
Repayments under secured debt agreements | (2,486,103 | ) | (2,172,557 | ) | ||||||||
Proceeds from issuance of collateralized loan obligations | 1,243,125 | — | ||||||||||
Repayment of collateralized loan obligations | (179,759 | ) | — | |||||||||
Proceeds from sale of loan participations | — | 21,346 | ||||||||||
Repayment of loan participations | — | (115,874 | ) | |||||||||
Net proceeds from issuance of secured term loans | 315,438 | 498,750 | ||||||||||
Repayments of secured term loans | (3,744 | ) | — | |||||||||
Payment of deferred financing costs | (27,906 | ) | (23,323 | ) | ||||||||
Contributions from non-controlling interests | 8,108 | 18,628 | ||||||||||
Distributions to non-controlling interests | (10,128 | ) | (728 | ) | ||||||||
Net proceeds from issuance of class A common stock | 278,322 | 372,329 | ||||||||||
Dividends paid on class A common stock | (167,623 | ) | (154,443 | ) | ||||||||
Net cash provided by (used in) financing activities | 1,169,772 | (91,834 | ) | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,110,752 | (25,075 | ) | |||||||||
Cash and cash equivalents at beginning of period | 150,090 | 105,662 | ||||||||||
Effects of currency translation on cash and cash equivalents | (1,006 | ) | (3 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 1,259,836 | $ | 80,584 | ||||||||
Supplemental disclosure of cash flows information | ||||||||||||
Payments of interest | $ | (173,040 | ) | $ | (219,573 | ) | ||||||
Payments of income taxes | $ | (148 | ) | $ | (99 | ) | ||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||
Dividends declared, not paid | $ | (90,642 | ) | $ | (83,259 | ) | ||||||
Satisfaction of management and incentive fees in stock | $ | 19,277 | $ | — | ||||||||
Loan principal payments held by servicer, net | $ | 81,261 | $ | 32,975 | ||||||||
New York 10154. We were incorporated in Maryland in 1998, when we reorganized from a California common law business trust into a Maryland corporation.
VIEs.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Restricted As of both June 30, 2020 and December 31, 2019, we had 0 restricted cash representson our consolidated balance sheets.
The following table provides a reconciliation of cash, cash equivalents,accounts, and restricted cashthese amounts are not included in the assets and liabilities presented in our consolidated balance sheetssheets. Cash in these Servicing Accounts will be transferred by the respective third-party servicer to the total amount shown in our consolidated statementsborrower or us under the terms of cash flows ($ in thousands):
September 30, 2017 | September 30, 2016 | |||||||
Cash and cash equivalents | $ | 61,221 | $ | 94,061 | ||||
Restricted cash | 32,864 | 877 | ||||||
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Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows | $ | 94,085 | $ | 94,938 | ||||
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the applicable loan agreement upon occurrence of certain future events. We do not generate any revenue or incur any expenses as a result of these Servicing Accounts.
• | U.S. Loans |
• | Non-U.S. Loans |
• | Unique Loans |
• | Impaired Loans collateral-dependent loans. The CECL reserve is assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by our Manager. Actual losses, if any, could ultimately differ from these estimates. |
Impact of ASU 2016-13 Adoption | ||||
Assets: | ||||
Loans | ||||
U.S. Loans | $ | 8,955 | ||
Non-U.S. Loans | 3,631 | |||
Unique Loans | 1,356 | |||
CECL reserve on loans | $ | 13,942 | ||
CECL reserve on held-to-maturity debt securities | 445 | |||
Liabilities: | ||||
CECL reserve on unfunded loan commitments | 3,263 | |||
Total impact of ASU 2016-13 adoption on retained earnings | $ | 17,650 | ||
1 - | Very Low Risk | |||
2 - | Low Risk | |||
3 - | Medium Risk | |||
4 - | High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss. | |||
5 - | Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. |
During
Equity Investment in Unconsolidated Subsidiary
Our carried interest in CT Opportunity Partners I, LP, or CTOPI, was accounted for usingportfolio could vary significantly from the equity method. CTOPI’s assets and liabilities were not consolidated into our financial statements due to our determination that (i) it was not a VIE and (ii) the other investors in CTOPI had sufficient rights to preclude consolidation by us. As such,estimates we reported our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The investment was fully realizedmade as of December 31, 2016 and we no longer have any equity investments in unconsolidated subsidiaries in our consolidated financial statements.
June 30, 2020
Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date.
• | Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. |
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates.
Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2.
• | Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. |
• | Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. |
Mana
• | Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value. |
• | Loans receivable, net: The fair values of these loans were estimated by our Manager based on a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed relevant by our Manager. |
• | Debt securities held-to-maturity: The fair value of these instruments was estimated by utilizing third-party pricing service providers assuming the securities are not sold prior to maturity. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
Restricted cash: The carrying amount of restricted cash approximates fair value.
Loans receivable, net: The fair values of these loans were estimated by our Manager based on a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants.
Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads.
Secured debt agreements, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced.
Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset.
Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price.
Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices.
Blackstone Mortgage Trust, Inc.
• | Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. |
• | Secured debt agreements, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. |
• | Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
• | Secured term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
• | Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained using quoted market prices. |
In August 2017, the FASB issued ASU 2017-12 “Derivatives and Hedging Topic 815: Targeted Improvements to Accounting for Hedging Activities,” or ASU 2017-12. ASU 2017-12 is intended to better align an entity’s financial reporting for hedging activities with the economic objectives of those activities. Upon adoption of ASU 2017-12, the cumulative ineffectiveness that has previously been recognized on existing cash flow and net investment hedges will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income (loss). We adopted ASU 2017-12 in the third quarter of 2017, which did not have an impact on our financial statements as we had not previously recognized any hedge ineffectiveness related to our existing cash flow and net investment hedges. In future periods, for hedges that are deemed effective, we will no longer need to bifurcate hedges into an effective and ineffective portion, and all gains or losses on effective hedges will be recognized in other comprehensive income (loss).
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash,” or ASU 2016-18. ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. We adopted ASU 2016-18 in the second quarter of 2017 and applied the guidance retrospectively to our prior period consolidated statement of cash flows.
In June 2016, the FASB issued ASU
earnings.
of ASU
September 30, 2017 | December 31, 2016 | |||||||
Number of loans | 111 | 107 | ||||||
Principal balance | $ | 9,681,055 | $ | 8,727,218 | ||||
Net book value | $ | 9,637,152 | $ | 8,692,978 | ||||
Unfunded loan commitments(1) | $ | 1,622,216 | $ | 882,472 | ||||
Weighted-average cash coupon(2) | 5.30 | % | 5.01 | % | ||||
Weighted-average all-in yield(2) | 5.68 | % | 5.36 | % | ||||
Weighted-average maximum maturity (years)(3) | 3.4 | 3.2 | ||||||
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June 30, 2020 | December 31, 2019 | |||||||
Number of loans | 128 | 128 | ||||||
Principal balance | $ | 16,434,631 | $ | 16,277,343 | ||||
Net book value | $ | 16,161,353 | $ | 16,164,801 | ||||
Unfunded loan commitments (1) | $ | 3,590,868 | $ | 3,911,868 | ||||
Weighted-average cash coupon (2) | L + 3.17 | % | L + 3.20 | % | ||||
Weighted-average all-in yield(2) | L + 3.52 | % | L + 3.55 | % | ||||
Weighted-average maximum maturity (years) (3) | 3.5 | 3.8 | ||||||
(1) | Unfunded commitments will primarily be funded to finance | |||||
(2) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, | |||||
(3) | Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of |
Principal Balance | Deferred Fees / Other Items(1) | Net Book Value | ||||||||||
December 31, 2016 | $ | 8,727,218 | $ | (34,240) | $ | 8,692,978 | ||||||
Loan fundings | 2,789,341 | — | 2,789,341 | |||||||||
Loan repayments | (1,970,743 | ) | — | (1,970,743 | ) | |||||||
Unrealized gain (loss) on foreign currency translation | 135,239 | (116 | ) | 135,123 | ||||||||
Deferred fees and other items | — | (38,434 | ) | (38,434 | ) | |||||||
Amortization of fees and other items | — | 28,887 | 28,887 | |||||||||
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September 30, 2017 | $ | 9,681,055 | $ | (43,903 | ) | $ | 9,637,152 | |||||
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Principal Balance | Deferred Fees / Other Items (1) | Net Book Value | ||||||||||
Loans Receivable, as of December 31, 2019 | $ | 16,277,343 | $ | (112,542 | ) | $ | 16,164,801 | |||||
Loan fundings | 1,240,642 | — | 1,240,642 | |||||||||
Loan repayments | (953,069 | ) | — | (953,069 | ) | |||||||
Unrealized (loss) gain on foreign currency translation | (130,285 | ) | 1,232 | (129,053 | ) | |||||||
Deferred fees and other items | — | (11,969 | ) | (11,969 | ) | |||||||
Amortization of fees and other items | — | 28,051 | 28,051 | |||||||||
Loans Receivable, as of June 30, 2020 | $ | 16,434,631 | $ | (95,228 | ) | $ | 16,339,403 | |||||
CECL reserve | (178,050 | ) | ||||||||||
Loans Receivable, net, as of June 30, 2020 | $ | 16,161,353 | ||||||||||
(1) | Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses. |
September 30, 2017 | ||||||||||||
Property Type | Number of Loans | Net Book Value | Total Loan Exposure(1) | Percentage of Portfolio | ||||||||
Office | 55 | $ | 5,781,675 | $ | 5,814,214 | 54% | ||||||
Hotel | 14 | 1,713,162 | 1,784,893 | 17 | ||||||||
Retail | 7 | 539,752 | 982,270 | 9 | ||||||||
Multifamily | 17 | 762,969 | 767,875 | 7 | ||||||||
Condominium | 2 | 129,421 | 273,112 | 3 | ||||||||
Manufactured housing | 7 | 232,148 | 231,856 | 2 | ||||||||
Other | 9 | 478,025 | 814,457 | 8 | ||||||||
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111 | $ | 9,637,152 | $ | 10,668,677 | 100% | |||||||
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Geographic Location | Number of Loans | Net Book Value | Total Loan Exposure(1) | Percentage of Portfolio | ||||||||
United States | ||||||||||||
Northeast | 26 | $ | 2,680,546 | $ | 2,694,018 | 25% | ||||||
West | 28 | 2,470,097 | 2,629,456 | 24 | ||||||||
Southeast | 21 | 1,964,534 | 2,414,994 | 23 | ||||||||
Midwest | 8 | 890,546 | 894,564 | 8 | ||||||||
Southwest | 8 | 291,792 | 290,393 | 3 | ||||||||
Northwest | 2 | 249,118 | 251,422 | 2 | ||||||||
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Subtotal | 93 | 8,546,633 | 9,174,847 | 85 | ||||||||
International | ||||||||||||
United Kingdom | 7 | 486,794 | 838,763 | 8 | ||||||||
Canada | 7 | 462,832 | 458,619 | 4 | ||||||||
Belgium | 1 | 72,544 | 73,247 | 1 | ||||||||
Germany | 1 | 12,114 | 66,810 | 1 | ||||||||
Netherlands | 2 | 56,235 | 56,391 | 1 | ||||||||
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Subtotal | 18 | 1,090,519 | 1,493,830 | 15 | ||||||||
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Total | 111 | $ | 9,637,152 | $ | 10,668,677 | 100% | ||||||
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June 30, 2020 | ||||||||||||||||
Property Type | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | Percentage of Portfolio | ||||||||||||
Office | 60 | $ | 9,580,065 | $ | 9,940,103 | 59% | ||||||||||
Hospitality | 14 | 2,220,051 | 2,295,799 | 13 | ||||||||||||
Multifamily | 36 | 1,881,529 | 1,947,388 | 11 | ||||||||||||
Industrial | 7 | 840,065 | 844,665 | 5 | ||||||||||||
Retail | 4 | 533,088 | 544,682 | 3 | ||||||||||||
Self-Storage | 2 | 289,329 | 289,441 | 2 | ||||||||||||
Condominium | 2 | 232,220 | 233,621 | 1 | ||||||||||||
Other | 3 | 763,056 | 1,078,545 | 6 | ||||||||||||
Total loans receivable | 128 | $ | 16,339,403 | $ | 17,174,244 | 100% | ||||||||||
CECL reserve | (178,050 | ) | ||||||||||||||
Loans receivable, net | $ | 16,161,353 | ||||||||||||||
Geographic Location | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | Percentage of Portfolio | ||||||||||||
United States | ||||||||||||||||
Northeast | 27 | $ | 4,277,301 | $ | 4,301,875 | 25% | ||||||||||
West | 28 | 2,924,455 | 3,304,345 | 19 | ||||||||||||
Southeast | 25 | 2,363,782 | 2,376,630 | 14 | ||||||||||||
Midwest | 9 | 1,044,542 | 1,048,537 | 6 | ||||||||||||
Southwest | 12 | 614,003 | 616,253 | 4 | ||||||||||||
Northwest | 1 | 15,515 | 15,530 | — | ||||||||||||
Subtotal | 102 | 11,239,598 | 11,663,170 | 68 | ||||||||||||
International | ||||||||||||||||
United Kingdom | 13 | 1,658,666 | 1,997,241 | 12 | ||||||||||||
Ireland | 1 | 1,323,243 | 1,333,139 | 8 | ||||||||||||
Spain | 2 | 1,208,597 | 1,214,209 | 7 | ||||||||||||
Germany | 1 | 198,675 | 250,803 | 1 | ||||||||||||
Australia | 2 | 232,376 | 233,425 | 1 | ||||||||||||
Italy | 1 | 186,671 | 188,510 | 1 | ||||||||||||
Netherlands | 1 | 96,634 | 97,731 | 1 | ||||||||||||
Belgium | 1 | 87,222 | 87,304 | 1 | ||||||||||||
Canada | 3 | 75,534 | 75,684 | — | ||||||||||||
France | 1 | 32,187 | 33,028 | — | ||||||||||||
Subtotal | 26 | 5,099,805 | 5,511,074 | 32 | ||||||||||||
Total loans receivable | 128 | $ | 16,339,403 | $ | 17,174,244 | 100% | ||||||||||
CECL reserve | (178,050 | ) | ||||||||||||||
Loans receivable, net | $ | 16,161,353 | ||||||||||||||
(1) | In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including non-consolidated senior interests as of | |||||
(2) | Excludes investment exposure to the $857.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. |
December 31, 2016 | ||||||||||||||
Property Type | Number of | Net Book Value | Total Loan Exposure(1) | Percentage of Portfolio | ||||||||||
Office | 55 | $ | 4,800,609 | $ | 4,889,456 | 50% | ||||||||
Hotel | 18 | 1,889,732 | 1,957,334 | 20 | ||||||||||
Retail | 9 | 769,813 | 1,173,592 | 12 | ||||||||||
Multifamily | 8 | 521,097 | 523,529 | 5 | ||||||||||
Manufactured housing | 9 | 296,290 | 296,252 | 3 | ||||||||||
Condominium | 2 | 66,070 | 258,360 | 3 | ||||||||||
Other | 6 | 349,367 | 658,211 | 7 | ||||||||||
|
|
|
|
|
|
| ||||||||
107 | $ | 8,692,978 | $ | 9,756,734 | 100% | |||||||||
|
|
|
|
|
|
| ||||||||
Geographic Location | Number of | Net Book Value | Total Loan Exposure(1) | Percentage of Portfolio | ||||||||||
United States | ||||||||||||||
Northeast | 26 | $ | 2,548,257 | $ | 2,562,149 | 26% | ||||||||
Southeast | 21 | 1,492,530 | 1,899,748 | 19 | ||||||||||
West | 22 | 1,628,811 | 1,828,667 | 19 | ||||||||||
Midwest | 7 | 695,713 | 698,093 | 7 | ||||||||||
Southwest | 8 | 380,639 | 379,766 | 4 | ||||||||||
Northwest | 3 | 227,747 | 293,564 | 3 | ||||||||||
|
|
|
|
|
|
| ||||||||
Subtotal | 87 | 6,973,697 | 7,661,987 | 78 | ||||||||||
International | ||||||||||||||
United Kingdom | 9 | 977,136 | 1,305,816 | 13 | ||||||||||
Canada | 8 | 487,835 | 483,923 | 5 | ||||||||||
Germany | 1 | 204,241 | 254,644 | 3 | ||||||||||
Netherlands | 2 | 50,069 | 50,364 | 1 | ||||||||||
|
|
|
|
|
|
| ||||||||
Subtotal | 20 | 1,719,281 | 2,094,747 | 22 | ||||||||||
|
|
|
|
|
|
| ||||||||
Total | 107 | $ | 8,692,978 | $ | 9,756,734 | 100% | ||||||||
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|
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|
| ||||||||
|
December 31, 2019 | ||||||||||||
Property Type | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | Percentage of Portfolio | ||||||||
Office | 63 | $ | 9,946,055 | $ | 10,266,567 | 61% | ||||||
Hospitality | 14 | 2,199,220 | 2,281,718 | 13 | ||||||||
Multifamily | 36 | 1,596,333 | 1,642,664 | 10 | ||||||||
Industrial | 5 | 603,917 | 607,423 | 4 | ||||||||
Retail | 3 | 373,045 | 381,040 | 2 | ||||||||
Self-Storage | 2 | 291,994 | 292,496 | 2 | ||||||||
Condominium | 1 | 232,778 | 234,260 | 1 | ||||||||
Other | 4 | 921,459 | 1,259,696 | 7 | ||||||||
128 | $ | 16,164,801 | $ | 16,965,864 | 100% | |||||||
Geographic Location | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | Percentage of Portfolio | ||||||||||||
United States | ||||||||||||||||
Northeast | 25 | $ | 3,789,477 | $ | 3,815,580 | 22% | ||||||||||
West | 30 | 3,143,323 | 3,451,914 | 20 | ||||||||||||
Southeast | 23 | 2,321,444 | 2,334,852 | 14 | ||||||||||||
Midwest | 10 | 1,174,581 | 1,180,240 | 7 | ||||||||||||
Southwest | 11 | 464,989 | 467,532 | 3 | ||||||||||||
Northwest | 3 | 52,891 | 52,989 | — | ||||||||||||
Subtotal | 102 | 10,946,705 | 11,303,107 | 66 | ||||||||||||
International | ||||||||||||||||
United Kingdom | 13 | 1,738,536 | 2,102,501 | 12 | ||||||||||||
Ireland | 1 | 1,318,196 | 1,330,647 | 8 | ||||||||||||
Spain | 2 | 1,231,061 | 1,237,809 | 7 | ||||||||||||
Australia | 3 | 360,047 | 361,763 | 2 | ||||||||||||
Germany | 1 | 195,081 | 251,020 | 1 | ||||||||||||
Italy | 1 | 178,740 | 180,897 | 1 | ||||||||||||
Belgium | 1 | 86,807 | 87,201 | 1 | ||||||||||||
Canada | 3 | 77,656 | 77,953 | 1 | ||||||||||||
France | 1 | 31,972 | 32,966 | 1 | ||||||||||||
Subtotal | 26 | 5,218,096 | 5,662,757 | 34 | ||||||||||||
Total | 128 | $ | 16,164,801 | $ | 16,965,864 | 100% | ||||||||||
(1) | In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including non-consolidated senior interests as of December 31, | |||||||||
(2) | Excludes investment exposure to the $930.0 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||
Risk Rating | Number of Loans | Net Book Value | Total Loan Exposure(1) | Risk Rating | Number of Loans | Net Book Value | Total Loan Exposure(1) | |||||||||||||||||||||
1 | 4 | $ | 421,313 | $ | 421,628 | 1 | 8 | $ | 361,100 | $ | 361,574 | |||||||||||||||||
2 | 49 | 3,701,801 | 3,708,603 | 2 | 52 | 4,011,992 | 4,083,678 | |||||||||||||||||||||
3 | 57 | 5,493,409 | 6,517,829 | 3 | 46 | 4,299,026 | 5,290,668 | |||||||||||||||||||||
4 | 1 | 20,629 | 20,617 | 4 | 1 | 20,860 | 20,814 | |||||||||||||||||||||
5 | — | — | — | 5 | — | — | — | |||||||||||||||||||||
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|
|
|
|
|
|
| |||||||||||||||||||
111 | $ | 9,637,152 | $ | 10,668,677 | 107 | $ | 8,692,978 | $ | 9,756,734 | |||||||||||||||||||
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|
|
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Risk Rating | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | ||||||||||||||||||||||
1 | 6 | $ | 403,025 | $ | 404,596 | 6 | $ | 376,379 | $ | 378,427 | ||||||||||||||||||
2 | 28 | 3,143,641 | 3,163,083 | 30 | 3,481,123 | 3,504,972 | ||||||||||||||||||||||
3 | 78 | 9,509,007 | 10,306,208 | 89 | 12,137,963 | 12,912,722 | ||||||||||||||||||||||
4 | 14 | 2,951,069 | 2,966,195 | 3 | 169,336 | 169,743 | ||||||||||||||||||||||
5 | 2 | 332,661 | 334,162 | — | — | — | ||||||||||||||||||||||
Total loans receivable | 128 | $ | 16,339,403 | $ | 17,174,244 | 128 | $ | 16,164,801 | $ | 16,965,864 | ||||||||||||||||||
CECL reserve | (178,050 | ) | — | |||||||||||||||||||||||||
Loans receivable, net | $ | 16,161,353 | $ | 16,164,801 | ||||||||||||||||||||||||
(1) | In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including non-consolidated senior interests as of |
(2) | Excludes investment exposure to the 2018 Single Asset Securitization of $857.3 million and $930.0 million as of June 30, 2020 and December 31, 2019, respectively. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. |
U.S. Loans | Non-U.S. Loans | Unique Loans | Impaired Loans | Total | ||||||||||||||||
Loans Receivable, Net | ||||||||||||||||||||
CECL reserve as of December 31, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Initial CECL reserve on January 1, 2020 | 8,955 | 3,631 | 1,356 | — | 13,942 | |||||||||||||||
Increase in CECL reserve | 52,449 | 16,114 | 25,884 | 69,661 | 164,108 | |||||||||||||||
CECL reserve as of June 30, 2020 | $ | 61,404 | $ | 19,745 | $ | 27,240 | $ | 69,661 | $ | 178,050 | ||||||||||
CECL reserve as of March 31, 2020 | $ | 64,861 | $ | 21,825 | $ | 26,008 | $ | — | $ | 112,694 | ||||||||||
(Decrease) increase in CECL reserve | (3,457 | ) | (2,080 | ) | 1,232 | 69,661 | 65,356 | |||||||||||||
CECL reserve as of June 30, 2020 | $ | 61,404 | $ | 19,745 | $ | 27,240 | $ | 69,661 | $ | 178,050 | ||||||||||
We did not have any impaired loans, nonaccrual loans, or loans in maturity defaultnet book value of our loan portfolio as of SeptemberJune 30, 2017 or December 31, 2016.
2020 by year of origination, investment pool, and risk rating ($ in thousands):
Net Book Value of Loans Receivable by Year of Origination (1)(2) | ||||||||||||||||||||||||||||
As of June 30, 2020 | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||
U.S. loans | ||||||||||||||||||||||||||||
1 | $ | 20,362 | $ | 199,351 | $ | — | $ | 43,979 | $ | 22,153 | $ | — | $ | 285,845 | ||||||||||||||
2 | — | 86,727 | 1,907,488 | 758,791 | 79,947 | 223,466 | 3,056,419 | |||||||||||||||||||||
3 | 586,916 | 2,404,636 | 1,625,490 | 1,116,969 | 229,517 | 228,698 | 6,192,226 | |||||||||||||||||||||
4 | 65,860 | 165,782 | 1,042,967 | 63,212 | 110,158 | — | 1,447,979 | |||||||||||||||||||||
5 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total U.S. loans | $ | 673,138 | $ | 2,856,496 | $ | 4,575,945 | $ | 1,982,951 | $ | 441,775 | $ | 452,164 | $ | 10,982,469 | ||||||||||||||
Non-U.S. loans | ||||||||||||||||||||||||||||
1 | $ | — | $ | — | $ | 117,180 | $ | — | $ | — | $ | — | $ | 117,180 | ||||||||||||||
2 | — | — | — | 87,222 | — | — | 87,222 | |||||||||||||||||||||
3 | 96,634 | 2,423,414 | 430,690 | — | 103,880 | — | 3,054,618 | |||||||||||||||||||||
4 | — | 231,923 | — | — | — | — | 231,923 | |||||||||||||||||||||
5 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total Non-U.S. loans | $ | 96,634 | $ | 2,655,337 | $ | 547,870 | $ | 87,222 | $ | 103,880 | $ | — | $ | 3,490,943 | ||||||||||||||
Unique loans | ||||||||||||||||||||||||||||
1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
2 | — | — | — | — | — | — | — | |||||||||||||||||||||
3 | — | — | 178,505 | — | — | 83,658 | 262,163 | |||||||||||||||||||||
4 | — | 294,492 | 976,675 | — | — | — | 1,271,167 | |||||||||||||||||||||
5 | — | — | — | — | — | — | — | |||||||||||||||||||||
Total unique loans | $ | — | $ | 294,492 | $ | 1,155,180 | $ | — | $ | — | $ | 83,658 | $ | 1,533,330 | ||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
2 | — | — | — | — | — | — | — | |||||||||||||||||||||
3 | — | — | — | — | — | — | — | |||||||||||||||||||||
4 | — | — | — | — | — | — | — | |||||||||||||||||||||
5 | — | — | 279,874 | — | — | 52,787 | 332,661 | |||||||||||||||||||||
Total impaired loans | $ | — | $ | — | $ | 279,874 | $ | — | $ | — | $ | 52,787 | $ | 332,661 | ||||||||||||||
Total loans receivable | ||||||||||||||||||||||||||||
1 | $ | 20,362 | $ | 199,351 | $ | 117,180 | $ | 43,979 | $ | 22,153 | $ | — | $ | 403,025 | ||||||||||||||
2 | — | 86,727 | 1,907,488 | 846,013 | 79,947 | 223,466 | 3,143,641 | |||||||||||||||||||||
3 | 683,550 | 4,828,050 | 2,234,685 | 1,116,969 | 333,397 | 312,356 | 9,509,007 | |||||||||||||||||||||
4 | 65,860 | 692,197 | 2,019,642 | 63,212 | 110,158 | — | 2,951,069 | |||||||||||||||||||||
5 | — | — | 279,874 | — | — | 52,787 | 332,661 | |||||||||||||||||||||
Total loans receivable | $ | 769,772 | $ | 5,806,325 | $ | 6,558,869 | $ | 2,070,173 | $ | 545,655 | $ | 588,609 | $ | 16,339,403 | ||||||||||||||
CECL reserve | (178,050 | ) | ||||||||||||||||||||||||||
Loans receivable, net | $ | 16,161,353 | ||||||||||||||||||||||||||
(1) | Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. |
(2) | Excludes the $75.8 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. |
Our equity investment in unconsolidated subsidiary consisted solely of our carried interest in CTOPI, a fund formerly sponsored and managed by an affiliate of our Manager. The investment was fully realized as of December 31, 2016 and we no longer have any investments in unconsolidated subsidiaries on our consolidated financial statements.
Our carried interest in CTOPI entitled us to earn promote revenue in an amount equal to 17.7% of the fund’s profits, after a 9% preferred return and 100% return of capital to the CTOPI partners. We recognized $2.1 million and $2.2 million of promote income from CTOPI in respect of our carried interest and recorded such amounts in our consolidated statements of operations during the three and nine months ended September 30, 2016, respectively.
CTOPI Incentive Management Fee Grants
In January 2011, we created a management compensation pool for employees equal to 45% of the CTOPI promote distributions received by us. During the nine months ended September 30, 2016, we recognized $1.1 million of expenses under the CTOPI incentive plan. Such amounts were recognized as a component of general and administrative expenses in our consolidated statement of operations.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
5. OTHER ASSETS AND LIABILITIES
September 30, 2017 | December 31, 2016 | |||||||
Accrued interest receivable | $ | 34,715 | $ | 32,871 | ||||
Collateral deposited under derivative agreements | 7,750 | 79 | ||||||
Derivative assets | 1,628 | 4,086 | ||||||
Loan portfolio payments held by servicer(1) | 845 | 5,765 | ||||||
Prepaid expenses | 469 | 803 | ||||||
Prepaid taxes | 34 | 16 | ||||||
Other | 239 | 450 | ||||||
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|
|
| |||||
Total | $ | 45,680 | $ | 44,070 | ||||
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|
| |||||
|
June 30, 2020 | December 31, 2019 | |||||||
Loan portfolio payments held by servicer (1) | $ | 81,261 | $ | 49,584 | ||||
Debt securities held-to-maturity (2) | 79,955 | 86,638 | ||||||
CECL reserve | (4,119 | ) | — | |||||
Debt securities held-to-maturity, net | 75,836 | 86,638 | ||||||
Accrued interest receivable | 60,792 | 66,649 | ||||||
Collateral deposited under derivative agreements | 22,180 | 30,800 | ||||||
Prepaid taxes | 376 | 376 | ||||||
Prepaid expenses | 328 | 739 | ||||||
Derivative assets | 327 | 1,079 | ||||||
Other | 834 | 1,115 | ||||||
Total | $ | 241,934 | $ | 236,980 | ||||
(1) | Represents loan principal and interest payments held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle. |
(2) | Represents the subordinate position we own in the 2018 Single Asset Securitization, which held aggregate loan assets of $857.3 million and $930.0 million as of June 30, 2020 and December 31, 2019, respectively, with a yield to full maturity of L+10.0% and a maximum maturity date of June 9, 2025, assuming all extension options are exercised by the borrower. Refer to Note 15 for additional discussion. |
U.S. Loans | Non-U.S. Loans | Unique Loans | Impaired Loans | Total | ||||||||||||||||
Debt Securities Held-To-Maturity | ||||||||||||||||||||
CECL reserve as of December 31, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Initial CECL reserve on January 1, 2020 | 445 | — | — | — | 445 | |||||||||||||||
Increase in CECL reserve | 3,674 | — | — | — | 3,674 | |||||||||||||||
CECL reserve as of June 30, 2020 | $ | 4,119 | $ | — | $ | — | $ | — | $ | 4,119 | ||||||||||
CECL reserve as of March 31, 2020 | $ | 5,122 | $ | — | $ | — | $ | — | $ | 5,122 | ||||||||||
Decrease in CECL reserve | (1,003 | ) | — | — | (1,003 | ) | ||||||||||||||
CECL reserve as of June 30, 2020 | $ | 4,119 | $ | — | $ | — | $ | — | $ | 4,119 | ||||||||||
September��30, 2017 | December 31, 2016 | |||||||
Accrued dividends payable | $ | 58,793 | $ | 58,615 | ||||
Accrued interest payable | 19,922 | 9,049 | ||||||
Accrued management and incentive fees payable | 13,243 | 12,798 | ||||||
Derivative liabilities | 7,167 | 210 | ||||||
Accounts payable and other liabilities | 2,633 | 1,775 | ||||||
Secured debt repayments pending servicer remittance(1) | — | 5,372 | ||||||
|
|
|
| |||||
Total | $ | 101,758 | $ | 87,819 | ||||
|
|
|
| |||||
|
June 30, 2020 | December 31, 2019 | |||||||
Accrued dividends payable | $ | 90,642 | $ | 83,702 | ||||
Derivative liabilities | 26,164 | 42,263 | ||||||
Accrued interest payable | 20,895 | 24,831 | ||||||
Accrued management and incentive fees payable | 20,496 | 20,159 | ||||||
Current expected credit loss reserve for unfunded loan commitments (1) | 15,002 | — | ||||||
Accounts payable and other liabilities | 4,114 | 5,008 | ||||||
Total | $ | 177,313 | $ | 175,963 | ||||
(1) | Represents |
6.
U.S. Loans | Non-U.S. Loans | Unique Loans | Impaired Loans | Total | ||||||||||||||||
Unfunded Loan Commitments | ||||||||||||||||||||
CECL reserve as of December 31, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Initial CECL reserve on January 1, 2020 | 2,801 | 453 | 9 | — | 3,263 | |||||||||||||||
Increase in CECL reserve | 10,035 | 1,625 | 79 | — | 11,739 | |||||||||||||||
CECL reserve as of June 30, 2020 | $ | 12,836 | $ | 2,078 | $ | 88 | $ | — | $ | 15,002 | ||||||||||
CECL reserve as of March 31, 2020 | $ | 19,793 | $ | 2,672 | $ | 71 | $ | — | $ | 22,536 | ||||||||||
(Decrease) increase in CECL reserve | (6,957 | ) | (594 | ) | 17 | — | (7,534 | ) | ||||||||||||
CECL reserve as of June 30, 2020 | $ | 12,836 | $ | 2,078 | $ | 88 | $ | — | $ | 15,002 | ||||||||||
Secured Debt Agreements | ||||||||
Borrowings Outstanding | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
Credit facilities | $ | 4,386,645 | $ | 3,572,837 | ||||
GE portfolio acquisition facility | 1,090,946 | 1,479,582 | ||||||
Asset-specific financings | 517,256 | 679,207 | ||||||
Revolving credit agreement | 101,750 | — | ||||||
|
|
|
| |||||
Total secured debt agreements | $ | 6,096,597 | $ | 5,731,626 | ||||
|
|
|
| |||||
Deferred financing costs(1) | (17,462 | ) | (15,272 | ) | ||||
|
|
|
| |||||
Net book value of secured debt | $ | 6,079,135 | $ | 5,716,354 | ||||
|
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|
| |||||
|
Secured Debt Agreements | ||||||||
Borrowings Outstanding | ||||||||
June 30, 2020 | December 31, 2019 | |||||||
Secured credit facilities | $ | 9,431,109 | $ | 9,753,059 | ||||
Asset-specific financings | 285,343 | 330,879 | ||||||
Revolving credit agreement | — | — | ||||||
Total secured debt agreements | $ | 9,716,452 | $ | 10,083,938 | ||||
Deferred financing costs (1) | (26,911 | ) | (29,008 | ) | ||||
Net book value of secured debt | $ | 9,689,541 | $ | 10,054,930 | ||||
(1) | Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement. |
During the nine months ended September 30, 2017, we added two new
September 30, 2017 | ||||||||||||||||||||
Maximum | Collateral | Credit Borrowings | ||||||||||||||||||
Lender | Facility Size(1) | Assets(2) | Potential(3) | Outstanding | Available(3) | |||||||||||||||
Wells Fargo | $ | 2,000,000 | $ | 2,232,117 | $ | 1,724,227 | $ | 1,398,224 | $ | 326,003 | ||||||||||
MetLife | 1,000,000 | 1,030,148 | 807,164 | 807,164 | — | |||||||||||||||
Bank of America | 750,000 | 818,359 | 641,066 | 641,066 | — | |||||||||||||||
Citibank(4) | 795,350 | 596,119 | 464,849 | 356,751 | 108,098 | |||||||||||||||
JP Morgan(5) | 500,000 | 453,121 | 344,656 | 295,984 | 48,672 | |||||||||||||||
Deutsche Bank | 500,000 | 393,564 | 295,743 | 295,743 | — | |||||||||||||||
Société Générale(6) | 472,560 | 332,761 | 266,000 | 266,000 | — | |||||||||||||||
Morgan Stanley(7) | 669,900 | 422,332 | 331,037 | 211,105 | 119,932 | |||||||||||||||
Bank of America - Multi. JV(8) | 200,000 | 87,000 | 69,600 | 69,600 | — | |||||||||||||||
Goldman Sachs - Multi. JV(8) | 250,000 | 59,125 | 45,008 | 45,008 | — | |||||||||||||||
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$ | 7,137,810 | $ | 6,424,646 | $ | 4,989,350 | $ | 4,386,645 | $ | 602,705 | |||||||||||
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December 31, 2016 | ||||||||||||||||||||
Maximum | Collateral | Credit Borrowings | ||||||||||||||||||
Lender | Facility Size(1) | Assets(2) | Potential(3) | Outstanding | Available(3) | |||||||||||||||
Wells Fargo | $ | 2,000,000 | $ | 1,718,874 | $ | 1,339,942 | $ | 1,107,733 | $ | 232,209 | ||||||||||
MetLife | 1,000,000 | 1,106,017 | 862,454 | 862,454 | — | |||||||||||||||
Bank of America | 750,000 | 794,881 | 617,694 | 617,694 | — | |||||||||||||||
JP Morgan(5) | 500,000 | 550,560 | 420,414 | 316,219 | 104,195 | |||||||||||||||
Morgan Stanley(7) | 308,500 | 344,056 | 272,221 | 231,930 | 40,291 | |||||||||||||||
Citibank(4) | 500,000 | 508,989 | 394,677 | 229,629 | 165,048 | |||||||||||||||
Société Générale(6) | 420,680 | 274,351 | 207,178 | 207,178 | — | |||||||||||||||
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$ | 5,479,180 | $ | 5,297,728 | $ | 4,114,580 | $ | 3,572,837 | $ | 541,743 | |||||||||||
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June 30, 2020 | ||||||||||||||||
Credit Facility Borrowings | Collateral | |||||||||||||||
Lender | Potential (1) | Outstanding | Available (1) | Assets (2) | ||||||||||||
Deutsche Bank | $ | 2,011,496 | $ | 2,011,496 | $ | — | $ | 2,673,795 | ||||||||
Barclays | 1,637,749 | 1,607,267 | 30,482 | 2,110,436 | ||||||||||||
Wells Fargo | 1,516,822 | 1,497,542 | 19,280 | 1,960,089 | ||||||||||||
Citibank | 916,680 | 899,627 | 17,053 | 1,189,282 | ||||||||||||
Goldman Sachs | 582,860 | 582,854 | 6 | 781,016 | ||||||||||||
Bank of America | 540,376 | 540,376 | — | 750,722 | ||||||||||||
Morgan Stanley | 492,293 | 492,293 | — | 786,931 | ||||||||||||
MetLife | 444,502 | 444,502 | — | 556,015 | ||||||||||||
JP Morgan | 415,535 | 388,182 | 27,353 | 558,291 | ||||||||||||
Santander | 244,607 | 244,607 | — | 306,082 | ||||||||||||
Société Générale | 236,698 | 236,698 | — | 301,932 | ||||||||||||
Goldman Sachs - Multi. JV (3) | 234,464 | 234,464 | — | 306,555 | ||||||||||||
US Bank - Multi. JV (3) | 220,139 | 217,281 | 2,858 | 275,174 | ||||||||||||
Bank of America - Multi. JV (3) | 33,920 | 33,920 | — | 42,400 | ||||||||||||
$ | 9,528,141 | $ | 9,431,109 | $ | 97,032 | $ | 12,598,720 | |||||||||
(1) |
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| Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. | |||||||||||||||||
(2) |
Represents the principal balance of | |||||||||||||||||
(3) |
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| These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. |
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
December 31, 2019 | ||||||||||||||||
Credit Facility Borrowings | Collateral | |||||||||||||||
Lender | Potential (1) | Outstanding | Available (1) | Assets (2) | ||||||||||||
Wells Fargo | $ | 2,056,769 | $ | 2,018,057 | $ | 38,712 | $ | 2,621,806 | ||||||||
Deutsche Bank | 2,037,795 | 1,971,860 | 65,935 | 2,573,447 | ||||||||||||
Barclays | 1,629,551 | 1,442,083 | 187,468 | 2,044,654 | ||||||||||||
Citibank | 1,159,888 | 1,109,837 | 50,051 | 1,473,745 | ||||||||||||
Bank of America | 603,660 | 513,660 | 90,000 | 775,678 | ||||||||||||
Morgan Stanley | 524,162 | 468,048 | 56,114 | 706,080 | ||||||||||||
Goldman Sachs | 474,338 | 450,000 | 24,338 | 632,013 | ||||||||||||
MetLife | 417,677 | 417,677 | — | 536,553 | ||||||||||||
Société Générale | 333,473 | 333,473 | — | 437,130 | ||||||||||||
US Bank - Multi. JV (3) | 279,838 | 279,552 | 286 | 350,034 | ||||||||||||
JP Morgan | 303,288 | 259,062 | 44,226 | 386,545 | ||||||||||||
Santander | 239,332 | 239,332 | — | 299,597 | ||||||||||||
Goldman Sachs - Multi. JV (3) | 203,846 | 203,846 | — | 261,461 | ||||||||||||
Bank of America - Multi. JV (3) | 46,572 | 46,572 | — | 58,957 | ||||||||||||
$ | 10,310,189 | $ | 9,753,059 | $ | 557,130 | $ | 13,157,700 | |||||||||
(1) | Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. | |||||||||||||||||
(2) | Represents the principal balance of the collateral assets. | |||||||||||||||||
(3) | These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. |
Lender | Currency | Guarantee (1) | Margin Call (2) | Term/Maturity | ||||
Morgan Stanley | ||||||||
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| $ / £ / € | 25% | Collateral marks only | March 1, 2022 | ||||
Goldman Sachs - Multi. JV (3) | $ | 25% | Collateral marks only | July 12, 2022 (6) | ||||
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Bank of America - Multi. JV (3) | $ | 43% | Collateral marks only | July 19, (7) | ||||
JP Morgan | $ / £ | 43% | Collateral marks only | January 7, 2024 (8) | ||||
Bank of America | $ | 50% | Collateral marks only | May 21, 2024 (9) | ||||
MetLife | $ | 62% | Collateral marks only | September 23, 2025 (10) | ||||
Deutsche Bank | $ / € | 60% (4) | Collateral marks only | Term matched (11) | ||||
Citibank | $ / £ / € / A$ / C$ | 25% | Collateral marks only | Term matched (11) | ||||
Société Générale | $ / £ / € | 25% | Collateral marks only | Term matched (11) | ||||
Santander | € | 50% | Collateral marks only | Term matched (11) | ||||
Wells Fargo | $ / C$ | 25% (5) | Collateral marks only | Term matched (11) | ||||
US Bank - Multi. JV (3) | $ | 25% | Collateral marks only | Term matched (11) | ||||
Barclays | $ / £ / € | 25% | Collateral marks only | Term matched (11) | ||||
Goldman Sachs | $ / £ / € | 25% | Collateral marks only | Term matched (11) | ||||
(1) | Other than amounts guaranteed based on specific collateral asset types, borrowings under our credit facilities are non-recourse to us. | |
(2) | Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks. These provisions have been temporarily suspended on certain of our facilities as described above. | |
(3) | These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture. | |
(4) | Specific borrowings outstanding of $934.7 million are 100 % guaranteed. The remainder of the credit facility borrowings are 25 % guaranteed. | |
(5) | In addition to the 25 % guarantee across all borrowings, there is an incremental guarantee of $146.6 million related to $195.4 million of specific borrowings outstanding. | |
(6) | Includes a one-year extension option which may be exercised at our sole discretion. | |
(7) | Includes two one-year extension options which may be exercised at our sole discretion. | |
(8) | Includes two one-year extension options which may be exercised at our sole discretion. | |
(9) | Includes two one-year extension options which may be exercised at our sole discretion. | |
(10) | Includes five one-year extension options which may be exercised at our sole discretion. | |
(11) | These secured credit facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset. |
Currency | Potential Borrowings (1) | Outstanding Borrowings | (2) | Spread | Advance (3) | |||||||||||||||||||
$ | $ 5,783,708 | $ 5,693,741 | USD LIBOR | L + 1.63% | 75.3% | |||||||||||||||||||
€ | € 2,227,183 | € 2,220,917 | EURIBOR | E + 1.44% | 79.6% | |||||||||||||||||||
£ | £ 818,468 | £ 818,468 | GBP LIBOR | L + 1.95% | 71.5% | |||||||||||||||||||
A$ | A$ 245,254 | A$ 245,254 | BBSY | BBSY + 1.90% | 72.5% | |||||||||||||||||||
C$ | C$ 78,924 | C$ 78,886 | CDOR | CDOR + 1.80% | 78.3% | |||||||||||||||||||
$ 9,528,141 | $ 9,431,109 | INDEX + 1.62% | 75.6% | |||||||||||||||||||||
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Currency | Outstanding Borrowings | Potential Borrowings(1) | Index | Rate(2) | Advance Rate(3) | |||||||||||||||
$ | $ 4,123,064 | $ 4,610,777 | 1-month USD LIBOR | L+1.86% | 78.8% | |||||||||||||||
€ | € 66,186 | € 87,786 | 3-month EURIBOR | L+2.24% | 80.0% | |||||||||||||||
£ | £ 138,371 | £ 205,152 | 3-month GBP LIBOR | L+2.24% | 78.6% | |||||||||||||||
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$ 4,386,645 | $ 4,989,350 | L+1.88% | 78.8% | |||||||||||||||||
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(1) | Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. | |||||||||||||||||
(2) |
Floating rate indices are generally matched to the payment timing under the terms of each secured credit facility and its respective collateral assets. | |||||||||||||||||
(3) | Represents weighted-average advance rate based on the approved outstanding principal balance of the collateral assets pledged. |
GE Portfolio Acquisition Facility
During the second quarter of 2015, concurrently with our acquisition of the GE portfolio, we entered into an agreement with Wells Fargo to provide us with secured financing for the acquired portfolio. As of September 30, 2017, this facility provided for $1.2 billion of financing, of which $1.1 billion was outstanding and an additional $129.4 million was available to finance future loan fundings in the GE portfolio. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for asset-specific borrowings for each collateral asset.
The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted-average rate of 80% of our purchase price of the collateral assets and are repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of September 30, 2017, those borrowings were denominated in U.S. Dollars, Canadian Dollars, and British Pounds Sterling. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. We had outstanding asset-specific borrowings under the GE portfolio acquisition facility of $1.1 billion and a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 1.75% per annum as of September 30, 2017, compared to $1.5 billion of outstanding asset-specific borrowings and a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 1.83% per annum as of December 31, 2016.
September 30, 2017 | ||||||||||||||||||||||
Asset-Specific Financings | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost(1) | Guarantee(2) | Wtd. Avg. Term(3) | ||||||||||||||||
Collateral assets | 5 | $ | 662,223 | $ | 659,152 | L+4.70 | % | n/a | Dec. 2020 | |||||||||||||
Financing provided(4) | 5 | $ | 517,256 | $ | 516,537 | L+2.48 | % | $ | 162,517 | Dec. 2020 |
June 30, 2020 | ||||||||||||||||||||||
Asset-Specific Financings | Count | Principal | Book Value | Wtd. Avg. Yield/Cost (1) | Guarantee (2) | Wtd. Avg. Term (3) | ||||||||||||||||
Collateral assets | 3 | $ | 356,679 | $ | 346,051 | L+5.20 | % | n/a | Feb. 2023 | |||||||||||||
Financing provided | 3 | $ | 285,343 | $ | 279,132 | L+3.60 | % | $ | 16,546 | Feb. 2023 |
December 31, 2019 | ||||||||||||||||||||||
Asset-Specific Financings | Count | Principal | Book Value | Wtd. Avg. Yield/Cost (1) | Guarantee (2) | Wtd. Avg. Term (3) | ||||||||||||||||
Collateral assets | 4 | $ | 429,983 | $ | 417,820 | L+4.90 | % | n/a | Mar. 2023 | |||||||||||||
Financing provided | 4 | $ | 330,879 | $ | 323,504 | L+3.42 | % | $ | 97,930 | Mar. 2023 |
(1) | These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. | |
(2) | Other than amounts guaranteed on an | |
(3) | The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings | |
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December 31, 2016 | ||||||||||||||||||||||
Asset-Specific Financings | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost(1) | Guarantee(2) | Wtd. Avg. Term(3) | ||||||||||||||||
Collateral assets | 7 | $ | 876,083 | $ | 869,417 | L+4.84 | % | n/a | Aug. 2020 | |||||||||||||
Financing provided(4) | 7 | $ | 679,207 | $ | 676,333 | L+2.60 | % | $ | 231,585 | Aug. 2020 |
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
December 31, 2019.
During the second quarter of 2017, we increased the borrowing capacity under our
2023.
During the nine months ended September 30, 2016, the weighted-average outstandingno borrowings under the revolving credit agreement were $19.5 million and we recorded interest expense of $915,000,$972,000, including $248,000$525,000 of amortization of deferred fees and expenses. As of December 31, 2016 we had no outstanding borrowings under the agreement.
Each of the
7. LOAN PARTICIPATIONS SOLD, NET
The financing of a loan by the non-recourse sale of a senior interest Refer to Note 7 for information regarding financial covenants contained in the agreements governing our senior secured term loan through a participation agreement generally does not qualify as a sale under GAAP. Therefore, in the instancefacility.
The following tables detail our loan participations sold ($ in thousands):
September 30, 2017 | ||||||||||||||||||||
Loan Participations Sold | Count | Principal Balance | Book Value | Yield/Cost(1) | Guarantee(2) | Term | ||||||||||||||
Total loan | 1 | $ | 93,710 | $ | 91,498 | L+5.96 | % | n/a | Feb. 2022 | |||||||||||
Senior participation(3) | 1 | 33,193 | 33,193 | L+4.00 | % | n/a | Feb. 2022 | |||||||||||||
December 31, 2016 | ||||||||||||||||||||
Loan Participations Sold | Count | Principal Balance | Book Value | Yield/Cost(1) | Guarantee(2) | Term | ||||||||||||||
Total loan | 1 | $ | 419,560 | $ | 416,233 | L+4.48 | % | n/a | Dec. 2019 | |||||||||||
Senior participation(3)(4) | 1 | 349,633 | 348,077 | L+2.72 | % | $ | 29,616 | Dec. 2019 |
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8.
September 30, 2017 | ||||||||||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value | Yield/Cost(1) | Term(2) | |||||||||||||
Total loan | 1 | $ | 644,788 | $ | 641,262 | L+3.60 | % | June 2023 | ||||||||||
Securitized debt obligations(3) | 1 | 474,620 | 474,298 | L+1.94 | % | June 2033 |
June 30, 2020 | |||||||||||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost (1) | Term (2) | ||||||||||||||
2020 Collateralized Loan Obligation | |||||||||||||||||||
Collateral assets | 34 | $ | 1,500,000 | $ | 1,500,000 | L+3.20 | % | December 2023 | |||||||||||
Financing provided | 1 | 1,243,125 | 1,231,872 | L+1.42 | % | February 2038 | |||||||||||||
2017 Collateralized Loan Obligation | |||||||||||||||||||
Collateral assets | 16 | 717,763 | 717,763 | L+3.33 | % | January 2023 | |||||||||||||
Financing provided | 1 | 535,263 | 534,120 | L+1.77 | % | June 2035 | |||||||||||||
2017 Single Asset Securitization | |||||||||||||||||||
Collateral assets (3) | 1 | 688,611 | 687,775 | L+3.57 | % | June 2023 | |||||||||||||
Financing provided | 1 | 474,620 | 474,620 | L+1.63 | % | June 2033 | |||||||||||||
Total | |||||||||||||||||||
Collateral assets | 51 | $ | 2,906,374 | $ | 2,905,538 | L+3.32 | % | ||||||||||||
Financing provided (4) | 3 | $ | 2,253,008 | $ | 2,240,612 | L+1.54 | % | ||||||||||||
December 31, 2019 | |||||||||||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost (1) | Term (2) | ||||||||||||||
2017 Collateralized Loan Obligation | |||||||||||||||||||
Collateral assets | 18 | $ | 897,522 | $ | 897,522 | L+3.43 | % | September 2022 | |||||||||||
Financing provided | 1 | 715,022 | 712,517 | L+1.98 | % | June 2035 | |||||||||||||
2017 Single Asset Securitization | |||||||||||||||||||
Collateral assets (3) | 1 | 711,738 | 710,260 | L+3.60 | % | June 2023 | |||||||||||||
Financing provided | 1 | 474,620 | 474,567 | L+1.64 | % | June 2033 | |||||||||||||
Total | |||||||||||||||||||
Collateral assets | 19 | $ | 1,609,260 | $ | 1,607,782 | L+3.51 | % | ||||||||||||
Financing provided (4) | 2 | $ | 1,189,642 | $ | 1,187,084 | L+1.84 | % | ||||||||||||
(1) | In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, All-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. | |
(2) | Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the | |
(3) | The collateral assets for the 2017 Single Asset Securitization include the total loan amount, of which we securitized $500.0 million. | |
(4) | During the three and |
We did not have any securitized debt obligations as
9.
Term Loans | Face Value | Interest Rate (1) | All-in Cost(1)(2) | Maturity | ||||||||||||
2019 Term Loan | $ | 743,134 | L+2.25 | % | L+2.52 | % | April 23, 2026 | |||||||||
2020 Term Loan | $ | 325,000 | L+4.75 | % | L+5.60 | % | April 23, 2026 | |||||||||
(1) | The 2020 Term Loan includes a LIBOR floor of 1.00%. | |
(2) | Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Secured Term Loans. |
June 30, 2020 | December 31, 2019 | |||||||
Face value | $ | 1,068,134 | $ | 746,878 | ||||
Unamortized discount | (10,739 | ) | (1,456 | ) | ||||
Deferred financing costs | (12,232 | ) | (9,280 | ) | ||||
Net book value | $ | 1,045,163 | $ | 736,142 | ||||
Convertible Notes Issuance | Face Value | Coupon Rate | All-in Cost(1) | Conversion Rate(2) | Maturity | |||||||||||||
November 2013 | $ | 172,500 | 5.25 | % | 5.87 | % | 36.1380 | December 1, 2018 | ||||||||||
May 2017 | 402,500 | 4.38 | % | 4.85 | % | 28.0324 | May 5, 2022 |
Convertible Notes Issuance | Face Value | Interest Rate | All-in Cost(1) | Conversion Rate (2) | Maturity | |||||||||||||||
May 2017 | $ | 402,500 | 4.38 | % | 4.85 | % | 28.0324 | May 5, 2022 | ||||||||||||
March 2018 | $ | 220,000 | 4.75 | % | 5.33 | % | 27.6052 | March 15, 2023 |
(1) | Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. | |
(2) | Represents the shares of class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to a conversion price of |
In May 2017 we issued $287.5 million of convertible notes. In the third quarter of 2017, we issued an additional $115.0 million of convertible notes under the same indenture and with the same terms as the May 2017 convertible notes. Accordingly, as of September 30, 2017, the May 2017 convertible notes had an aggregate outstanding face value of $402.5 million.
Upon our issuance of the November 2013 convertible notes, we recorded a $9.1 million discount based on the implied value of the conversion option and an assumed effective interest rate of 6.50%, as well as $4.1 million of initial issuance costs. Including the amortization of this discount and the issuance costs, our total cost of the November 2013 convertible notes issuance is 7.16% per annum.
The following table details
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cash coupon | $ | 6,247 | $ | 2,264 | $ | 12,732 | $ | 6,792 | ||||||||
Discount and issuance cost amortization | 1,202 | 691 | 2,869 | 2,038 | ||||||||||||
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Total interest expense | $ | 7,449 | $ | 2,955 | $ | 15,601 | $ | 8,830 | ||||||||
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amortization of the discount and issuance costs, our total cost of the March 2018 convertible notes issuance is 5.49% per annum.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
September 30, 2017 | December 31, 2016 | |||||||
Face value | $ | 575,000 | $ | 172,500 | ||||
Unamortized discount | (11,386 | ) | (5,532 | ) | ||||
Deferred financing costs | (873 | ) | (206 | ) | ||||
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Net book value | $ | 562,741 | $ | 166,762 | ||||
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Accrued
June 30, 2020 | December 31, 2019 | |||||||
Face value | $ | 622,500 | $ | 622,500 | ||||
Unamortized discount | (7,277 | ) | (8,801 | ) | ||||
Deferred financing costs | (513 | ) | (628 | ) | ||||
Net book value | $ | 614,710 | $ | 613,071 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cash coupon | $ | 7,015 | $ | 7,015 | $ | 14,030 | $ | 14,030 | ||||||||
Discount and issuance cost amortization | 828 | 788 | 1,639 | 1,560 | ||||||||||||
Total interest expense | $ | 7,843 | $ | 7,803 | $ | 15,669 | $ | 15,590 | ||||||||
10.
Net Investment Hedges of Foreign Currency Risk
Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. Dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. Dollar.
The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands):
September 30, 2017 | December 31, 2016 | |||||||||||||||||
Foreign Currency Derivatives | Number of | Notional Amount | Foreign Currency Derivatives | Number of Instruments | Notional Amount | |||||||||||||
Sell GBP Forward | 1 | £ | 112,700 | Sell GBP Forward | 2 | £ | 141,900 | |||||||||||
Sell CAD Forward | 1 | C$ | 102,000 | Sell CAD Forward | 2 | C$ | 122,900 | |||||||||||
Sell EUR Forward | 1 | € | 44,900 |
risk.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
September 30, 2017 | ||||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Strike | Index | Wtd.-Avg. Maturity (Years) | |||||||
Interest Rate Swaps | 4 | C$ | 108,183 | 1.0% | CDOR | 1.7 | ||||||
Interest Rate Caps | 9 | $ | 204,248 | 2.4% | USD LIBOR | 1.7 | ||||||
Interest Rate Caps | 3 | C$ | 23,370 | 2.0% | CDOR | 0.6 | ||||||
December 31, 2016 | ||||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Strike | Index | Wtd.-Avg. Maturity (Years) | |||||||
Interest Rate Swaps | 4 | C$ | 108,271 | 1.0% | CDOR | 2.4 | ||||||
Interest Rate Caps | 21 | $ | 802,256 | 2.0% | USD LIBOR | 0.4 | ||||||
Interest Rate Caps | 5 | C$ | 400,035 | 2.0% | CDOR | 0.4 | ||||||
Interest Rate Cap | 1 | £ | 15,142 | 2.0% | GBP LIBOR | 0.3 |
June 30, 2020 | ||||||||||||||||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Strike | Index | Wtd.-Avg. Maturity (Years) | |||||||||||||||||||
Interest Rate Swaps | 2 | C$ | 17,273 | 1.0% | CDOR | 0.2 | ||||||||||||||||||
Interest Rate Caps | 1 | C$ | 21,387 | 3.0% | CDOR | 0.5 |
December 31, 2019 | ||||||||||||||||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Strike | Index | Wtd.-Avg. Maturity (Years) | |||||||||||||||||||
Interest Rate Swaps | 2 | C$ | 17,273 | 1.0% | CDOR | 0.7 | ||||||||||||||||||
Interest Rate Caps | 1 | C$ | 21,387 | 3.0% | CDOR | 1.0 |
Non-designatedexpense.
of Foreign Currency Risk
The following tables summarize our non-designated hedges (notional amount in thousands):
September 30, 2017 | ||||||
Non-designated Hedges | Number of Instruments | Notional Amount | ||||
Buy USD / Sell GBP Forward | 1 | £ | 35,000 | |||
Buy GBP / Sell USD Forward | 1 | £ | 35,000 | |||
Buy USD / Sell CAD Forward | 1 | C$ | 15,000 | |||
Buy CAD / Sell USD Forward | 1 | C$ | 15,000 | |||
Buy GBP / Sell EUR Forward | 1 | € | 12,857 | |||
December 31, 2016 | ||||||
Non-designated Hedges | Number of Instruments | Notional Amount | ||||
Interest Rate Caps | 3 | $ | 256,875 | |||
Interest Rate Caps | 2 | C$ | 37,221 | |||
Buy GBP / Sell EUR Forward | 1 | € | 12,857 |
C$24.4 million.
Valuation
Foreign Currency Risk
Fair Value of Derivatives in an Asset Position(1) as of | Fair Value of Derivatives in a Liability Position(2) as of | |||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | $ | — | $ | 3,268 | $ | 5,617 | $ | 210 | ||||||||
Interest rate derivatives | 1,238 | 331 | — | — | ||||||||||||
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|
|
|
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|
| |||||||||
Total derivatives designated as hedging instruments | $ | 1,238 | $ | 3,599 | $ | 5,617 | $ | 210 | ||||||||
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|
| |||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | $ | 390 | $ | 487 | $ | 1,550 | $ | — | ||||||||
Interest rate derivatives | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total derivatives not designated as hedging instruments | $ | 390 | $ | 487 | $ | 1,550 | $ | — | ||||||||
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|
|
|
|
|
| |||||||||
Total Derivatives | $ | 1,628 | $ | 4,086 | $ | 7,167 | $ | 210 | ||||||||
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|
| |||||||||
|
|
|
June 30, 2020 | December 31, 2019 | |||||||||||||||||
Number of | Notional | Number of | Notional | |||||||||||||||
Foreign Currency Derivatives | Instruments | Amount | Foreign Currency Derivatives | Instruments | Amount | |||||||||||||
Buy USD / Sell EUR Forward | 7 | € | 607,690 | Buy USD / Sell GBP Forward | 4 | £ | 527,100 | |||||||||||
Buy USD / Sell GBP Forward | 5 | £ | 385,087 | Buy USD / Sell EUR Forward | 5 | € | 525,600 | |||||||||||
Buy USD / Sell AUD Forward | 1 | A$ | 92,800 | Buy USD / Sell AUD Forward | 3 | A$ | 135,600 | |||||||||||
Buy USD / Sell CAD Forward | 2 | C$ | Buy USD / Sell CAD Forward | 1 | C$ | 23,200 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||
Number of | Notional | Number of | Notional | |||||||||||||||
Non-designated Hedges | Instruments | Amount | Non-designated Hedges | Instruments | Amount | |||||||||||||
Buy USD / Sell GBP Forward | 1 | £ | Buy CAD / Sell USD Forward | 1 | C$ | 15,900 | ||||||||||||
Buy USD / Sell EUR Forward | 3 | € | 68,810 | Buy USD / Sell CAD Forward | 1 | C$ | 15,900 | |||||||||||
Buy EUR / Sell USD Forward | 2 | € | 56,100 | Buy GBP / Sell EUR Forward | 1 | € | 12,857 | |||||||||||
Buy AUD / Sell USD Forward | 1 | A$ | 10,000 | |||||||||||||||
Buy USD / Sell AUD Forward | 1 | A$ | 10,000 |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | ||||||||||||||||||
Derivatives in Hedging Relationships | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | ||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||
Foreign exchange contracts(1) | $ | (8,524 | ) | $ | (21,757 | ) | Interest Expense | $ | — | $ | — | |||||||||
Cash Flow Hedges | ||||||||||||||||||||
Interest rate derivatives | 536 | 707 | | Interest Income (Expense)(2) |
| 41 | (900 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | (7,988 | ) | $ | (21,050 | ) | $ | 41 | $ | (900 | ) | |||||||||
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|
|
Amount of Income (Expense) Recognized | ||||||||||||
from Foreign Exchange Contracts | ||||||||||||
Three Months | Six Months | |||||||||||
Foreign Exchange Contracts | Location of Income | Ended | Ended | |||||||||
in Hedging Relationships | (Expense) Recognized | June 30, 2020 | June 30, 2020 | |||||||||
Designated Hedges | Interest Income (1) | $ | 509 | $ | 509 | |||||||
Non-Designated Hedges | Interest Income (1) | 5 | 5 | |||||||||
Non-Designated Hedges | Interest Expense (2) | (361 | ) | (1,515 | ) | |||||||
Total | $ | 153 | $ | (1,001 | ) |
(1) | Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. | |
(2) | Represents the spot rate movement in our non-designated hedges, which are marked-to-market and recognized in interest expense. |
Fair Value of Derivatives in an | Fair Value of Derivatives in a | |||||||||||||||
Asset Position (1) as of | Liability Position (2) as of | |||||||||||||||
June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | $ | 321 | $ | — | $ | 24,706 | $ | 41,728 | ||||||||
Interest rate derivatives | — | 96 | 9 | — | ||||||||||||
Total | $ | 321 | $ | 96 | $ | 24,715 | $ | 41,728 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | $ | 6 | $ | 983 | $ | 1,449 | $ | 535 | ||||||||
Interest rate derivatives | — | — | — | — | ||||||||||||
Total | $ | 6 | $ | 983 | $ | 1,449 | $ | 535 | ||||||||
Total Derivatives | $ | 327 | $ | 1,079 | $ | 26,164 | $ | 42,263 | ||||||||
(1) | Included in other assets in our consolidated balance sheets. |
(2) | Included in other liabilities in our consolidated balance sheets. |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | ||||||||||||||||||
Three Months | Six Months | Reclassified from | Three Months | Six Months | ||||||||||||||||
Derivatives in Hedging Relationships | Ended June 30, 2020 | Ended June 30, 2020 | Accumulated OCI into Income | Ended June 30, 2020 | Ended June 30, 2020 | |||||||||||||||
Net Investment Hedges | ||||||||||||||||||||
Foreign exchange contracts (1) | $ | (30,656 | ) | $ | 73,430 | Interest Expense | $ | — | $ | — | ||||||||||
Cash Flow Hedges | ||||||||||||||||||||
Interest rate derivatives | (18 | ) | (85 | ) | Interest Expense | (2) | (9 | ) | 20 | |||||||||||
Total | $ | (30,674 | ) | $ | 73,345 | $ | (9 | ) | $ | 20 | ||||||||||
(1) | During the three and component of accumulated other comprehensive income ( loss) onour consolidated balance sheets. | |
(2) | During the three months ended |
$30.8 million under these derivative contracts.
11.
2020.
Class A Common Stock | 2020 Total / | |||||||||||
May (1) | June 2020 | Wtd. Avg. | ||||||||||
Shares issued | 840,696 | 10,000,000 | 10,840,696 | |||||||||
Gross share issue price (2) | $ | 22.93 | $ | 28.20 | $ | 27.79 | ||||||
Net share issue price (3) | $ | 22.93 | $ | 27.91 | $ | 27.52 | ||||||
Net proceeds (4) | $ | 19,277 | $ | 278,322 | $ | 297,599 | ||||||
(1) | Represents shares issued to our Manager in satisfaction of the management and incentive feesaccrued in the first quarter of 2020.The per share price was calculated based on the volume-weighted average price on the NYSE of our class A common stock over the five trading days following our April 29, 2020 first quarter 2020 earnings conference call. | |
(2) | Represents the weighted-average gross price per share paid by the underwriters or sales agents, as applicable , in June 2020. | |
(3) | Represents the weighted-average net proceeds per share after underwriting or sales discounts and commissions, as applicable , in June 2020. | |
(4) | Net proceeds represents proceeds received from the underwriters less applicable transaction costs in June 2020. |
Nine Months Ended September 30, | ||||||||
Common Stock Outstanding(1) | 2017 | 2016 | ||||||
Beginning balance | 94,709,290 | 93,843,847 | ||||||
Issuance of class A common stock(2) | 971 | 812 | ||||||
Issuance of restricted class A common stock, net | 286,773 | 209,798 | ||||||
Issuance of deferred stock units | 20,560 | 20,850 | ||||||
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| |||||
Ending balance | 95,017,594 | 94,075,307 | ||||||
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Six Months Ended June 30, | ||||||||
Common Stock Outstanding (1) | 2020 | 2019 | ||||||
Beginning balance | 135,263,728 | 123,664,577 | ||||||
Issuance of class A common stock (2) | 10,841,667 | 10,535,181 | ||||||
Issuance of restricted class A common stock, net | 351,333 | 317,339 | ||||||
Issuance of deferred stock units | 21,077 | 15,697 | ||||||
Ending balance | 146,477,805 | 134,532,794 | ||||||
(1) | Includes deferred stock units held by members of our board of directors of | |||||
(2) |
Includes 971 and |
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Dividends declared per share of common stock | $ | 0.62 | $ | 0.62 | $ | 1.86 | $ | 1.86 | ||||||||
Total dividends declared | $ | 58,793 | $ | 58,226 | $ | 176,374 | $ | 174,678 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Dividends declared per share of common stock | $ | 0.62 | $ | 0.62 | $ | 1.24 | $ | 1.24 | ||||||||
Total dividends declared | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income(1) | $ | 57,722 | $ | 64,794 | $ | 159,741 | $ | 184,921 | ||||||||
Weighted-average shares outstanding, basic and diluted | 95,013,087 | 94,071,537 | 95,004,188 | 94,067,923 | ||||||||||||
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Per share amount, basic and diluted | $ | 0.61 | $ | 0.69 | $ | 1.68 | $ | 1.97 | ||||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net income (loss) (1) | $ | 17,544 | $ | 75,174 | $ | (35,808 | ) | $ | 151,738 | |||||||
Weighted-average shares outstanding, basic and diluted | 138,299,418 | 126,475,244 | 136,959,341 | 125,410,064 | ||||||||||||
Per share amount, basic and diluted | $ | 0.13 | $ | 0.59 | $ | (0.26 | ) | $ | 1.21 | |||||||
(1) | Represents net income (loss) attributable to Blackstone Mortgage |
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Income
12.Multifamily Joint Venture’s total equity was $147.3 million, of which $125.2 million was owned by us, and $22.1 million was allocated to
2019. During the three months ended June 30, 2020, we issued 840,696 shares of class A common stock to our Manager in satisfaction of our aggregate $19.3 million of management and incentive fees
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Professional services(1) | $ | 933 | $ | 828 | $ | 2,811 | $ | 2,474 | ||||||||
Operating and other costs(1) | 489 | 305 | 1,424 | 1,695 | ||||||||||||
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Subtotal | 1,422 | 1,133 | 4,235 | 4,169 | ||||||||||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||||||||||||||
Management incentive awards plan - CTOPI(2) | — | 938 | — | 1,106 | ||||||||||||
Management incentive awards plan - CT Legacy Partners(3) | — | 354 | — | 1,112 | ||||||||||||
Restricted class A common stock earned | 5,819 | 4,855 | 17,496 | 14,190 | ||||||||||||
Director stock-based compensation | 125 | 94 | 313 | 282 | ||||||||||||
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Subtotal | 5,944 | 6,241 | 17,809 | 16,690 | ||||||||||||
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Total BXMT expenses | 7,366 | 7,374 | 22,044 | 20,859 | ||||||||||||
Other expenses | 53 | 40 | 175 | 131 | ||||||||||||
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Total general and administrative expenses | $ | 7,419 | $ | 7,414 | $ | 22,219 | $ | 20,990 | ||||||||
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(1) During the three and nine months ended September 30, 2017 we recognized an aggregate $112,000 of expenses related to our Multifamily Joint Venture. (2) Represents the portion of CTOPI promote revenue recorded under compensation awards. See Note 4 for further discussion. (3) Represents the amounts recorded under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan. |
|
CT Legacy Partners Management Incentive Awards Plan
In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of our subsidiary, CT Legacy Partners (subject to certain caps and priority distributions). During the three and nine months ended September 30, 2016 we recognized $354,000 and $1.1 million, respectively, of expenses under the CT Legacy Partners incentive plan. Our investment in CT Legacy Partners was substantially realized as of December 31, 2016.
13.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Professional services (1) | $ | 1,752 | $ | 1,249 | $ | 3,414 | $ | 2,439 | ||||||||
Operating and other costs (1) | 882 | 894 | 2,335 | 1,249 | ||||||||||||
Subtotal | 2,634 | 2,143 | 5,749 | 3,688 | ||||||||||||
Non-cash compensation expenses | ||||||||||||||||
Restricted class A common stock earned | 8,527 | 7,629 | 17,079 | 15,272 | ||||||||||||
Director stock-based compensation | 125 | 125 | 250 | 250 | ||||||||||||
Subtotal | 8,652 | 7,754 | 17,329 | 15,522 | ||||||||||||
Total general and administrative expenses | $ | 11,286 | $ | 9,897 | $ | 23,078 | $ | 19,210 | ||||||||
(1) | During the three and six months ended June 30, 2020, we recognized an aggregate $200,000 and $576,000, respectively, of expenses related to our Multifamily Joint Venture. During the three and six months ended June 30, 2019, we recognized an aggregate $164,000 and $333,000, respectively, of expenses related to our Multifamily Joint Venture. |
Restricted Class A Common Stock | Weighted-Average Grant Date Fair Value Per Share | |||||||
Balance as of December 31, 2019 | 1,698,582 | $ | 34.52 | |||||
Granted | 351,582 | 37.19 | ||||||
Vested | (502,638 | ) | 34.26 | |||||
Forfeited | (249 | ) | 35.83 | |||||
Balance as of June 30, 2020 | 1,547,277 | $ | 35.21 | |||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 327 | $ | — | $ | 327 | $ | — | $ | 1,079 | $ | — | $ | 1,079 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 26,164 | $ | — | $ | 26,164 | $ | — | $ | 42,263 | $ | — | $ | 42,263 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Book | Face | Fair | Book | Face | Fair | |||||||||||||||||||
Value | Amount | Value | Value | Amount | Value | |||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,259,836 | $ | 1,259,836 | $ | 1,259,836 | $ | 150,090 | $ | 150,090 | $ | 150,090 | ||||||||||||
Loans receivable, net | 16,161,353 | 16,434,631 | 16,214,574 | 16,164,801 | 16,277,343 | 16,279,904 | ||||||||||||||||||
Debt securities held-to-maturity (1) | 75,836 | 82,002 | 68,940 | 86,638 | 88,958 | 88,305 | ||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Secured debt agreements, net | 9,689,541 | 9,716,452 | 9,716,452 | 10,054,930 | 10,083,938 | 10,083,938 | ||||||||||||||||||
Securitized debt obligations, net | 2,240,612 | 2,253,008 | 2,172,578 | 1,187,084 | 1,189,642 | 1,189,368 | ||||||||||||||||||
Secured term loans, net | 1,045,163 | 1,068,134 | 1,012,228 | 736,142 | 746,878 | 750,769 | ||||||||||||||||||
Convertible notes, net | 614,710 | 622,500 | 580,810 | 613,071 | 622,500 | 665,900 |
June 30, 2020 | December 31, 2019 | |||||||
Assets: | ||||||||
Loans receivable | $ | 2,644,344 | $ | 1,349,903 | ||||
Current expected credit loss reserve | (14,816 | ) | — | |||||
Loans receivable, net | 2,629,528 | 1,349,903 | ||||||
Other assets | 79,552 | 51,788 | ||||||
Total assets | $ | 2,709,080 | $ | 1,401,691 | ||||
Liabilities: | ||||||||
Securitized debt obligations, net | $ | 2,240,612 | $ | 1,187,084 | ||||
Other liabilities | 1,527 | 1,648 | ||||||
Total liabilities | $ | 2,242,139 | $ | 1,188,732 | ||||
Payment Timing | ||||||||||||||||||||
Total | Less Than | 1 to 3 | 3 to 5 | More Than | ||||||||||||||||
Obligation | 1 Year | Years | Years | 5 Years | ||||||||||||||||
Principal repayments under secured debt agreements (1) | $ | 9,716,452 | $ | 183,218 | $ | 3,749,063 | $ | 5,544,371 | $ | 239,800 | ||||||||||
Principal repayments of secured term loans (2) | 1,068,134 | 10,738 | 21,475 | 21,475 | 1,014,446 | |||||||||||||||
Principal repayments of convertible notes (3) | 622,500 | — | 622,500 | — | — | |||||||||||||||
Total (4) | $ | 11,407,086 | $ | 193,956 | $ | 4,393,038 | $ | 5,565,846 | $ | 1,254,246 | ||||||||||
(1) | The allocation of repayments under our secured debt agreements is based on the earlier of (i) the maturity date of each facility, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. | |
(2) | The Secured Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. Refer to Note 7 for further details on our secured term loans. | |
(3) | Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 8 for further details on our Convertible Notes. | |
(4) | Does not include $739.6 million of non-consolidated senior interests and $2.3 billion of securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | ||||||||
June 30, 2020 | March 31, 2020 | |||||||
Net income (loss) (1) | $ | 17,544 | $ | (53,350 | ) | |||
Weighted-average shares outstanding, basic and diluted | 138,299,418 | 135,619,264 | ||||||
Net income (loss) per share, basic and diluted | $ | 0.13 | $ | (0.39 | ) | |||
Dividends declared per share | $ | 0.62 | $ | 0.62 | ||||
(1) | Represents net income (loss) attributable to Blackstone Mortgage Trust. |
Three Months Ended | ||||||||
June 30, 2020 | March 31, 2020 | |||||||
Net income (loss) (1) | $ | 17,544 | $ | (53,350 | ) | |||
Increase in current expected credit loss reserve | 56,819 | 122,702 | ||||||
Non-cash compensation expense | 8,652 | 8,678 | ||||||
Realized hedging and foreign currency income, net (2) | 1,810 | 8,467 | ||||||
Other items | 210 | 596 | ||||||
Adjustments attributable to non-controlling interests, net | 139 | (561 | ) | |||||
Core Earnings | $ | 85,174 | $ | 86,532 | ||||
Weighted-average shares outstanding, basic and diluted | 138,299,418 | 135,619,264 | ||||||
Core Earnings per share, basic and diluted | $ | 0.62 | $ | 0.64 | ||||
(1) | Represents net income (loss) attributable to Blackstone Mortgage Trust. | |
(2) | For the three months ended June 30, 2020, represents realized gains on the repatriation of unhedged foreign currency. For the three months ended March 31, 2020, primarily represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. These amounts were not included in GAAP net income (loss), but rather as a component of Other Comprehensive Income in our consolidated financial statements. |
June 30, 2020 | March 31, 2020 | |||||||
Stockholders’ equity | $ | 3,874,763 | $ | 3,650,920 | ||||
Shares | ||||||||
Class A common stock | 146,196,662 | 135,355,320 | ||||||
Deferred stock units | 281,143 | 268,049 | ||||||
Total outstanding | 146,477,805 | 135,623,369 | ||||||
Book value per share | $ | 26.45 | $ | 26.92 | ||||
Three Months Ended | Six Months Ended | |||||||
June 30, 2020 | June 30, 2020 | |||||||
Loan originations (1) | $ | 12,000 | $ | 1,311,939 | ||||
Loan fundings (2) | $ | 317,239 | $ | 1,317,583 | ||||
Loan repayments | (385,718 | ) | (953,069 | ) | ||||
Total net fundings | $ | (68,479 | ) | $ | 364,514 | |||
(1) | Includes new loan originations and additional commitments made under existing loans. | |
(2) | Loan fundings during the three and six months ended June 30, 2020 include $47.9 million and $76.9 million, respectively, of additional fundings under related non-consolidated senior interests. |
Total Investment Exposure | ||||||||||||||||||||||||
Balance Sheet Portfolio (1) | Loan Exposure (1)(2) | Other Investments (3) | Total Investment Portfolio | |||||||||||||||||||||
Number of investments | 128 | 128 | 1 | 129 | ||||||||||||||||||||
Principal balance | $ | 16,434,631 | $ | 17,174,244 | $ | 857,293 | $ | 18,031,537 | ||||||||||||||||
Net book value | $ | 16,161,353 | $ | 16,161,353 | $ | 75,836 | $ | 16,237,189 | ||||||||||||||||
Unfunded loan commitments (4) | $ | 3,590,868 | $ | 4,543,086 | $ | — | $ | 4,543,086 | ||||||||||||||||
Weighted-average cash coupon (5) | L + 3.17 | % | L + 3.23 | % | L + 2.75 | % | L + 3.21 | % | ||||||||||||||||
Weighted-average all-in yield (5) | L + 3.52 | % | L + 3.58 | % | L + 3.03 | % | L + 3.55 | % | ||||||||||||||||
Weighted-average maximum maturity (years) (6) | 3.5 | 3.5 | 4.9 | 3.5 | ||||||||||||||||||||
Loan to value (LTV) (7) | 64.6 | % | 64.6 | % | 42.6 | % | 63.6 | % | ||||||||||||||||
(1) | Excludes investment exposure to the $82.0 million subordinate position we own in the $857.3 million 2018 Single Asset Securitization. Refer to Notes 4 and 15 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. | |
(2) | In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. Total loan exposure encompasses the entire loan we originated and financed, including $739.6 million of such non-consolidated senior interests that are not included in our balance sheet portfolio. | |
(3) | Includes investment exposure to the $857.3 million 2018 Single Asset Securitization. We do not consolidate the 2018 Single Asset Securitization on our consolidated financial statements, and instead reflect our $82.0 million subordinate position as a component of other assets on our consolidated balance sheet. Refer to Notes 4 and 15 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization. | |
(4) | Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. | |
(5) | The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each investment. As of June 30, 2020, 97% of our investments by total investment exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $13.0 billion of such investments earned interest based on floors that are above the applicable index. The other 3% of our investments earned a fixed rate of interest, which we reflect as a spread over the relevant floating benchmark rates, as of June 30, 2020, for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. | |
(6) | Maximum maturity assumes all extension options are exercised by the borrower, however our loans and other investments may be repaid prior to such date. As of June 30, 2020, 51% of our loans and other investments were subject to yield maintenance or other prepayment restrictions and 49% were open to repayment by the borrower without penalty. | |
(7) | Based on LTV as of the dates loans and other investments were originated or acquired by us. |
Investment Count | Currency | Total Investment Portfolio | Floating Rate Index (1) | Cash Coupon (2) | All-in Yield (2) | |||||||||||||||||
103 | $ | $ | 12,520,462 | USD LIBOR | L + 3.14% | L + 3.49% | ||||||||||||||||
8 | € | € | 2,810,320 | EURIBOR | E + 2.90% | E + 3.24% | ||||||||||||||||
13 | £ | £ | 1,648,942 | GBP LIBOR | L + 3.98% | L + 4.28% | ||||||||||||||||
2 | A$ | A$ | 338,150 | BBSY | BBSY + 4.01% | BBSY + 4.31% | ||||||||||||||||
3 | C$ | C$ | 102,748 | CDOR | CDOR + 3.95% | CDOR + 4.29% | ||||||||||||||||
129 | $ | 18,031,537 | INDEX + 3.21% | INDEX + 3.55% | ||||||||||||||||||
(1) | We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. We earn forward points on our forward contracts that reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the foreign currency rate exposure for such investments to USD LIBOR. |
(2) | The cash coupon and all-in yield of our fixed rate loans are reflected as a spread over USD LIBOR for purposes of the weighted-averages. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. |
June 30, 2020 | ||||||||||||
Risk Rating | Number of Loans | Net Book Value | Total Loan Exposure (1)(2) | |||||||||
1 | 6 | $ | 403,025 | $ | 404,596 | |||||||
2 | 28 | 3,143,641 | 3,163,083 | |||||||||
3 | 78 | 9,509,007 | 10,306,208 | |||||||||
4 | 14 | 2,951,069 | 2,966,195 | |||||||||
5 | 2 | 332,661 | 334,162 | |||||||||
Loans receivable | 128 | $ | 16,339,403 | $ | 17,174,244 | |||||||
CECL reserve | (178,050 | ) | ||||||||||
Loans receivable, net | $ | 16,161,353 | ||||||||||
(1) | In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 to our consolidated financial statements for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $739.6 million of such non-consolidated senior interests as of June 30, 2020. | |
(2) | Excludes investment exposure to the $857.3 million 2018 Single Asset Securitization. Refer to Notes 4 and 15 to our consolidated financial statements for details of the subordinate position we own in the 2018 Single Asset Securitization. |
Portfolio Financing | ||||||||
Outstanding Principal Balance | ||||||||
June 30, 2020 | December 31, 2019 | |||||||
Secured credit facilities | $ | 9,431,109 | $ | 9,753,059 | ||||
Asset-specific financings | 285,343 | 330,879 | ||||||
Revolving credit agreement | — | — | ||||||
Non-consolidated senior interests (1) | 739,613 | 688,521 | ||||||
Securitized debt obligations | 2,253,008 | 1,189,642 | ||||||
Non-consolidated securitized debt obligation (2) | 775,291 | 841,062 | ||||||
Total portfolio financing | $ | 13,484,364 | $ | 12,803,163 | ||||
(1) | These non-consolidated senior interests provide structural leverage for our net investments which are reflected in the form of mezzanine loans or other subordinate interests on our balance sheet and in our results of operations. | |
(2) | Represents the senior non-consolidated investment exposure to the 2018 Single Asset Securitization. We own the related subordinate position, which is classified as a held-to-maturity debt security on our balance sheet. Refer to Notes 4 and 15 to our consolidated financial statements for details of the 2018 Single Asset Securitization. |
June 30, 2020 | ||||||||||||||||||
Credit Facility Borrowings | Collateral | |||||||||||||||||
Lender | Potential (1) | Outstanding | Available (1) | Assets (2) | ||||||||||||||
Deutsche Bank | $ | 2,011,496 | $ | 2,011,496 | $ | — | $ | 2,673,795 | ||||||||||
Barclays | 1,637,749 | 1,607,267 | 30,482 | 2,110,436 | ||||||||||||||
Wells Fargo | 1,516,822 | 1,497,542 | 19,280 | 1,960,089 | ||||||||||||||
Citibank | 916,680 | 899,627 | 17,053 | 1,189,282 | ||||||||||||||
Goldman Sachs | 582,860 | 582,854 | 6 | 781,016 | ||||||||||||||
Bank of America | 540,376 | 540,376 | — | 750,722 | ||||||||||||||
Morgan Stanley | 492,293 | 492,293 | — | 786,931 | ||||||||||||||
MetLife | 444,502 | 444,502 | — | 556,015 | ||||||||||||||
JP Morgan | 415,535 | 388,182 | 27,353 | 558,291 | ||||||||||||||
Santander | 244,607 | 244,607 | — | 306,082 | ||||||||||||||
Société Générale | 236,698 | 236,698 | — | 301,932 | ||||||||||||||
Goldman Sachs - Multi. JV (3) | 234,464 | 234,464 | — | 306,555 | ||||||||||||||
US Bank - Multi. JV (3) | 220,139 | 217,281 | 2,858 | 275,174 | ||||||||||||||
Bank of America - Multi. JV (3) | 33,920 | 33,920 | — | 42,400 | ||||||||||||||
$ | 9,528,141 | $ | 9,431,109 | $ | 97,032 | $ | 12,598,720 | |||||||||||
(1) | Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility. | |
(2) | Represents the principal balance of the collateral assets. | |
(3) | These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 to our consolidated financial statements for additional discussion of our Multifamily Joint Venture. |
June 30, 2020 | ||||||||||||||||||||||
Asset-Specific Financings | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost (1) | Guarantee (2) | Wtd. Avg. Term (3) | ||||||||||||||||
Collateral assets | 3 | $ | 356,679 | $ | 346,051 | L+5.20 | % | n/a | Feb. 2023 | |||||||||||||
Financing provided | 3 | $ | 285,343 | $ | 279,132 | L+3.60 | % | $ | 16,546 | Feb. 2023 |
(1) | These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. | |
(2) | Other than amounts guaranteed on asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us. | |
(3) | The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings is term-matched to the corresponding collateral loans. |
June 30, 2020 | ||||||||||||||||||||||
Non-Consolidated Senior Interests | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost (1) | Guarantee | Wtd. Avg. Term | ||||||||||||||||
Total loan | 5 | $ | 921,301 | n/a | 5.83 | % | n/a | Jan. 2024 | ||||||||||||||
Senior participation | 5 | 739,613 | n/a | 4.42 | % | n/a | Jan. 2024 |
(1) | Our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in yield/cost includes the amortization of deferred fees / financing costs. |
June 30, 2020 | ||||||||||||||||||
Principal | Book | Wtd. Avg. | ||||||||||||||||
Securitized Debt Obligations | Count | Balance | Value | Yield/Cost (1) | Term (2) | |||||||||||||
2020 Collateralized Loan Obligation | ||||||||||||||||||
Collateral assets | 34 | $ | 1,500,000 | $ | 1,500,000 | L+3.20 | % | December 2023 | ||||||||||
Financing provided | 1 | 1,243,125 | 1,231,872 | L+1.42 | % | February 2038 | ||||||||||||
2017 Collateralized Loan Obligation | ||||||||||||||||||
Collateral assets | 16 | 717,763 | 717,763 | L+3.33 | % | January 2023 | ||||||||||||
Financing provided | 1 | 535,263 | 534,120 | L+1.77 | % | June 2035 | ||||||||||||
2017 Single Asset Securitization | ||||||||||||||||||
Collateral assets (3) | 1 | 688,611 | 687,775 | L+3.57 | % | June 2023 | ||||||||||||
Financing provided | 1 | 474,620 | 474,620 | L+1.63 | % | June 2033 | ||||||||||||
Total | ||||||||||||||||||
Collateral assets | 51 | $ | 2,906,374 | $ | 2,905,538 | L+3.32 | % | |||||||||||
Financing provided (4) | 3 | $ | 2,253,008 | $ | 2,240,612 | L+1.54 | % | |||||||||||
(1) | In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. All-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. | |
(2) | Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. | |
(3) | The collateral assets for the 2017 Single Asset Securitization include the total loan amount, of which we securitized $500.0 million. | |
(4) | During the three and six months ended June 30, 2020, we recorded $10.7 million and $22.7 million, respectively, of interest expense related to our securitized debt obligations. |
June 30, 2020 | ||||||||||||||||||
Non-Consolidated Securitized Debt Obligation | Count | Principal Balance | Book Value | Wtd. Avg. Yield/Cost (1) | Wtd. Avg. Term (2) | |||||||||||||
Collateral assets | 1 | $ | 857,293 | n/a | L+3.03 | % | Jun. 2025 | |||||||||||
Financing provided | 1 | $ | 775,291 | n/a | L+2.25 | % | Jun. 2025 |
(1) | In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts. | |
(2) | Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of non-consolidated securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. |
Term Loan Issuance | Face Value | Interest Rate (1) | All-in Cost (1)(2) | Maturity | ||||||||||||
2019 Term Loan | $ | 743,134 | L+2.25 | % | L+2.52 | % | April 23, 2026 | |||||||||
2020 Term Loan | $ | 325,000 | L+4.75 | % | L+5.60 | % | April 23, 2026 |
(1) | The 2020 Term Loan borrowing is subject to a LIBOR floor of 1.00%. | |
(2) | Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Secured Term Loans. |
Convertible Notes Issuance | Face Value | Coupon Rate | All-in Cost (1) | Maturity | ||||||||||||
May 2017 | $ | 402,500 | 4.38 | % | 4.85 | % | May 5, 2022 | |||||||||
March 2018 | $ | 220,000 | 4.75 | % | 5.33 | % | March 15, 2023 |
(1) | Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. |
USD | EUR | GBP | AUD | CAD | ||||||||||||||||
Floating rate loans (1)(2) | $ | 12,520,462 | € | 2,797,610 | £ | 1,290,854 | A$ | 338,150 | C$ | 55,917 | ||||||||||
Floating rate debt (1)(3)(4) | (10,440,646 | ) | (2,220,917 | ) | (818,468 | ) | (245,254 | ) | (61,613 | ) | ||||||||||
Net floating rate exposure (5) | $ | 2,079,816 | € | 576,693 | £ | 472,386 | A$ | 92,896 | C$ | (5,696 | ) | |||||||||
(1) | Our floating rate investments and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. | |
(2) | Includes investment exposure to the 2018 Single Asset Securitization. Refer to Notes 4 and 15 to our consolidated financial statements for details of the subordinate position we own in the 2018 Single Asset Securitization. | |
(3) | Includes borrowings under secured debt agreements, non-consolidated senior interests, securitized debt obligations, non-consolidated securitized debt obligations, and secured term loans. | |
(4) | Balance includes two interest rate swaps totaling C$17.3 million ($12.7 million as of June 30, 2020) that are used to hedge a portion of our fixed rate debt. | |
(5) | In addition, we have one interest rate cap of C$21.4 million ($15.8 million as of June 30, 2020) to limit our exposure to increases in interest rates. |
Three Months Ended | 2020 vs. | Six Months Ended | 2020 vs. | |||||||||||||||||||||
June 30, | 2019 | June 30, | 2019 | |||||||||||||||||||||
2020 | 2019 | $ | 2020 | 2019 | $ | |||||||||||||||||||
Income from loans and other investments | ||||||||||||||||||||||||
Interest and related income | $ | 191,982 | $ | 223,369 | $ | (31,387 | ) | $ | 396,857 | $ | 448,128 | $ | (51,271 | ) | ||||||||||
Less: Interest and related expenses | 84,853 | 116,891 | (32,038 | ) | 189,092 | 235,579 | (46,487 | ) | ||||||||||||||||
Income from loans and other investments, net | 107,129 | 106,478 | 651 | 207,765 | 212,549 | (4,784 | ) | |||||||||||||||||
Other expenses | ||||||||||||||||||||||||
Management and incentive fees | 20,496 | 20,984 | (488 | ) | 39,773 | 40,774 | (1,001 | ) | ||||||||||||||||
General and administrative expenses | 11,286 | 9,897 | 1,389 | 23,078 | 19,210 | 3,868 | ||||||||||||||||||
Total other expenses | 31,782 | 30,881 | 901 | 62,851 | 59,984 | 2,867 | ||||||||||||||||||
Increase in current expected credit loss reserve | (56,819 | ) | — | (56,819 | ) | (179,521 | ) | — | (179,521 | ) | ||||||||||||||
Income (loss) before income taxes | 18,528 | 75,597 | (57,069 | ) | (34,607 | ) | 152,565 | (187,172 | ) | |||||||||||||||
Income tax provision | 23 | 46 | (23 | ) | 173 | 147 | 26 | |||||||||||||||||
Net income (loss) | 18,505 | 75,551 | (57,046 | ) | (34,780 | ) | 152,418 | (187,198 | ) | |||||||||||||||
Net income attributable to non-controlling interests | (961 | ) | (377 | ) | (584 | ) | (1,028 | ) | (680 | ) | (348 | ) | ||||||||||||
Net income (loss) attributable to Blackstone Mortgage Trust, Inc. | $ | 17,544 | $ | 75,174 | $ | (57,630 | ) | $ | (35,808 | ) | $ | 151,738 | $ | (187,546 | ) | |||||||||
Net income (loss) per share - basic and diluted | $ | 0.13 | $ | 0.59 | $ | (0.46 | ) | $ | (0.26 | ) | $ | 1.21 | $ | (1.47 | ) | |||||||||
Dividends declared per share | $ | 0.62 | $ | 0.62 | $ | — | $ | 1.24 | $ | 1.24 | $ | — |
June 30, 2020 | December 31, 2019 | |||
Debt-to-equity ratio (1) | 2.6x | 3.0x | ||
Total leverage ratio (2) | 3.6x | 3.7x | ||
(1) | Represents (i) total outstanding secured debt agreements, secured term loans, and convertible notes, less cash, to (ii) total equity, in each case at period end. | |
(2) | Represents (i) total outstanding secured debt agreements, secured term loans, convertible notes, non-consolidated senior interests, and consolidated and non-consolidated securitized debt obligations, less cash, to (ii) total equity, in each case at period end. |
June 30, 2020 | December 31, 2019 | |||||||
Cash and cash equivalents | $ | 1,259,836 | $ | 150,090 | ||||
Available borrowings under secured debt agreements | 97,032 | 598,840 | ||||||
Loan principal payments held by servicer, net (1) | 11,570 | 1,965 | ||||||
$ | 1,368,438 | $ | 750,895 | |||||
(1) | Represents loan principal payments held by our third-party servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle, net of the related secured debt balance. |
Payment Timing | ||||||||||||||||||||
Total | Less Than | 1 to 3 | 3 to 5 | More Than | ||||||||||||||||
Obligation | 1 Year | Years | Years | 5 Years | ||||||||||||||||
Unfunded loan commitments (1) | $ | 3,590,868 | $ | 93,950 | $ | 787,807 | $ | 2,178,328 | $ | 530,783 | ||||||||||
Principal repayments under secured debt agreements (2) | 9,716,452 | 183,218 | 3,749,063 | 5,544,371 | 239,800 | |||||||||||||||
Principal repayments of secured term loans (3) | 1,068,134 | 10,738 | 21,475 | 21,475 | 1,014,446 | |||||||||||||||
Principal repayments of convertible notes (4) | 622,500 | — | 622,500 | — | — | |||||||||||||||
Interest payments (2)(5) | 871,765 | 262,479 | 403,742 | 174,163 | 31,381 | |||||||||||||||
Total (6) | $ | 15,869,719 | $ | 550,385 | $ | 5,584,587 | $ | 7,918,337 | $ | 1,816,410 | ||||||||||
(1) | The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the final loan maturity date, however we may be obligated to fund these commitments earlier than such date . | |
(2) | The allocation of repayments under our secured debt agreements for both principal and interest payments is based on the earlier of (i) the maturity date of each facility, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. | |
(3) | The Secured Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. Refer to Note 7 to our consolidated financial statements for further details on our secured term loans. | |
(4) | Reflects the outstanding principal balance of convertible notes, excluding any potential conversion premium. Refer to Note 8 to our consolidated financial statements for further details on our convertible notes. | |
(5) | Represents interest payments on our secured debt agreements, convertible notes, and Secured Term Loans. Future interest payment obligations are estimated assuming the interest rates in effect as of June 30, 2020 will remain constant into the future. This is only an estimate as actual amounts borrowed and interest rates will vary over time. | |
(6) | Total does not include $739.6 million of non-consolidated senior interests and $3.0 billion of consolidated and non-consolidated securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us. |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Cash flows provided by operating activities | $ | 175,708 | $ | 157,184 | ||||
Cash flows used in investing activities | (234,728 | ) | (90,425 | ) | ||||
Cash flows provided by (used in) financing activities | 1,169,772 | (91,834 | ) | |||||
Net increase (decrease) in cash and cash equivalents | $ | 1,110,752 | $ | (25,075 | ) | |||
During the three and nine months ended September 30, 2017, we recorded a current income tax provision of $83,000 and $265,000, respectively, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes. During the three and nine months ended September 30, 2016, we recorded an income tax provision of $194,000 and $281,000, respectively. We did not have any deferred tax assets or liabilities as of September 30, 2017 or December 31, 2016.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our NOLs is generally limited to $2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of December 31, 2016, we had NOLs of $159.0 million that will expire in 2029, unless they are utilized by us prior to expiration.
As of September 30, 2017, tax years 2014 through 2016 remain subject to examination by taxing authorities.
14. STOCK-BASED INCENTIVE PLANS
We are externally managed by our Manager and do not currently have any employees. However, as of September 30, 2017, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were compensated, in part, through the issuance of stock-based instruments.
We had stock-based incentive awards outstanding under seven benefit plans as of September 30, 2017: (i) our amended and restated 1997 non-employee director stock plan, or 1997 Plan; (ii) our 2007 long-term incentive plan, or 2007 Plan; (iii) our 2011 long-term incentive plan, or 2011 Plan; (iv) our 2013 stock incentive plan, or 2013 Plan; (v) our 2013 manager incentive plan, or 2013 Manager Plan; (vi) our 2016 stock incentive plan, or 2016 Plan; and (vii) our 2016 manager incentive plan, or 2016 Manager Plan. We refer to our 1997 Plan, our 2007 Plan, our 2011 Plan, our 2013 Plan, and our 2013 Manager Plan, collectively, as our Expired Plans and we refer to our 2016 Plan and 2016 Manager Plan, collectively, as our Current Plans.
Our Expired Plans have expired and no new awards may be issued under them. Under our Current Plans, a maximum of 2,400,000 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of September 30, 2017, there were 1,448,852 shares available under the Current Plans.
The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share:
Restricted Class A Common Stock | Weighted-Average Grant Date Fair Value Per Share | |||||||
Balance as of December 31, 2016 | 1,309,995 | $ | 28.68 | |||||
Granted | 289,896 | 30.55 | ||||||
Vested | (335,536 | ) | 27.78 | |||||
Forfeited | (3,123 | ) | 27.37 | |||||
|
|
|
| |||||
Balance as of September 30, 2017 | 1,261,232 | $ | 29.35 | |||||
|
|
|
|
These shares generally vest in installments over a three-year period, pursuant to the terms of the respective award agreements and the terms of the Current Plans. The 1,261,232 shares of restricted class A common stock outstanding as of September 30, 2017 will vest as follows: 412,480 shares will vest in 2017; 542,789 shares will vest in 2018; 305,218 shares will vest in 2019; and 745 shares will vest in 2020. As of September 30, 2017, total unrecognized compensation cost relating to nonvested share-based compensation arrangements was $29.8 million based on the closing price of our class A common stock of $31.02 on September 29, 2017, the last trading day in the quarter ended September 30, 2017. This cost is expected to be recognized over a weighted average period of 1.0 years from September 30, 2017.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
15. FAIR VALUES
Assets and Liabilities Measured at Fair Value
The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 1,628 | $ | — | $ | 1,628 | $ | — | $ | 4,086 | $ | — | $ | 4,086 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivatives | $ | — | $ | 7,167 | $ | — | $ | 7,167 | $ | — | $ | 210 | $ | — | $ | 210 |
The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):
Nine Months Ended September 30, | ||||||||
2017 | 2016(1) | |||||||
January 1, | $ | — | $ | 12,561 | ||||
Proceeds from investment realizations | — | (2,406 | ) | |||||
Transfers out of level 3(2) | — | (20,745 | ) | |||||
Adjustments to fair value included in earnings | ||||||||
Gain on investments at fair value | — | 11,790 | ||||||
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September 30, | $ | — | $ | 1,200 | ||||
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Refer to Note 2 for further discussion regarding fair value measurement.
Fair Value of Financial Instruments
As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands):
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Carrying | Face | Fair | Carrying | Face | Fair | |||||||||||||||||||
Amount | Amount | Value | Amount | Amount | Value | |||||||||||||||||||
Financial assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 61,221 | $ | 61,221 | $ | 61,221 | $ | 75,567 | $ | 75,567 | $ | 75,567 | ||||||||||||
Restricted cash | 32,864 | 32,864 | 32,864 | — | — | — | ||||||||||||||||||
Loans receivable, net | 9,637,152 | 9,681,055 | 9,685,422 | 8,692,978 | 8,727,218 | 8,733,784 | ||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||
Secured debt agreements, net | 6,079,135 | 6,096,597 | 6,096,597 | 5,716,354 | 5,731,626 | 5,731,626 | ||||||||||||||||||
Loan participations sold, net | 33,193 | 33,193 | 33,193 | 348,077 | 349,633 | 349,633 | ||||||||||||||||||
Securitized debt obligations, net | 474,298 | 474,620 | 474,655 | — | — | — | ||||||||||||||||||
Convertible notes, net | 562,741 | 575,000 | 602,503 | 166,762 | 172,500 | 191,763 |
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
Estimates of fair value for cash and cash equivalents, restricted cash, and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities.
16. VARIABLE INTEREST ENTITIES
In the second quarter of 2017, we financed one of our loans through the Securitization, which is a VIE. We are the primary beneficiary and consolidate the Securitization on our balance sheet as we (i) control the subordinate tranche of the Securitization, which we believe gives us the power to direct the activities that most significantly affect the Securitization, and (ii) have the right to receive benefits and obligation to absorb losses of the Securitization through the subordinate interests we own.
The following table details the assets and liabilities of our consolidated Securitization VIE ($ in thousands):
September 30, 2017 | December 31, 2016 | |||||||
Assets: | ||||||||
Loans receivable, net | $ | 500,000 | $ | — | ||||
Other assets | 763 | — | ||||||
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Total assets | $ | 500,763 | $ | — | ||||
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Liabilities: | ||||||||
Securitized debt obligations, net | $ | 474,298 | $ | — | ||||
Other liabilities | 604 | — | ||||||
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Total liabilities | $ | 474,902 | $ | — | ||||
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Assets held by the Securitization are restricted and can be used only to settle obligations of the Securitization, including the subordinate interests owned by us. The liabilities of the Securitization are non-recourse to us and can only be satisfied from the assets of the Securitization. The consolidation of the Securitization results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income. We are not obligated to provide, have not provided, and do not intend to provide financial support to the Securitization.
17. TRANSACTIONS WITH RELATED PARTIES
We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2017, and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated.
As of September 30, 2017 and December 31, 2016, our consolidated balance sheet included $13.2 million and $12.8 million of accrued management and incentive fees payable to our Manager, respectively. During the three and nine months ended September 30, 2017, we paid management and incentive fees of $14.4 million and $40.1 million, respectively, to our Manager, compared to $15.8 million and $43.8 million during the same periods of 2016. In addition, during the three and nine months ended September 30, 2017, we reimbursed our Manager for expenses incurred on our behalf of $59,000 and $325,000, respectively, compared to $82,000 and $462,000 during the same periods of 2016. During the three and nine months ended September 30, 2016, CT Legacy Partners made aggregate preferred distributions of $146,000 and $491,000, respectively, to an affiliate of our Manager.
As of September 30, 2017, our Manager held 607,789 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $17.8 million. The shares vest in installments over three years from the date of issuance. During the three and nine months ended September 30, 2017, we recorded non-cash expense related to shares held by our Manager of $2.9 million and $8.7 million, respectively, compared to $2.5 million and $7.1 million during the same periods of 2016. We did not issue any shares of restricted class A common stock to our Manager during the nine months ended September 30, 2017 or 2016, respectively. Refer to Note 14 for further details on our restricted class A common stock.
During the nine months ended September 30, 2017 and 2016, we originated five loans and one loan, respectively, whereby each respective borrower engaged an affiliate of our Manager to act as title insurance agent in connection with each transaction. We did not incur any expenses or receive any revenues as a result of these transactions.
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
(Unaudited)
During the three and nine months ended September 30, 2017, we incurred $87,000 and $254,000, respectively, of expenses for various administrative and capital market data services to third-party service providers that are affiliates of our Manager, compared to $112,000 and $282,000 during the same periods of 2016.
On June 30, 2017, in a fully subscribed offering totaling $474.6 million, certain Blackstone-advised investment vehicles purchased, in the aggregate, $72.9 million of securitized debt obligations issued by the Securitization. These investments by the Blackstone-advised investment vehicles represented no more than a 49% participation in any individual tranche and were purchased by the Blackstone-advised investment vehicles from third-party investment banks on market terms negotiated by the majority third-party investors. Refer to Note 8 for further details on the Securitization.
18. COMMITMENTS AND CONTINGENCIES
Unfunded Commitments Under Loans Receivable
As of September 30, 2017, we had unfunded commitments of $1.6 billion related to 67 of our loans receivable, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers. These future commitments will expire variously over the next four years.
Litigation
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of September 30, 2017, we were not involved in any material legal proceedings.
Board of Directors’ Compensation
In April 2017, our board of directors approved changes to the compensation of our five independent directors which were effective as of the beginning of the third quarter of 2017. The other three board members, including our chairman and our chief executive officer, will continue to serve as directors without compensation for such service. These changes increased the annual compensation of our directors from $125,000 to $175,000 and are paid $75,000 in cash and $100,000 in the form of deferred stock units. In addition, (i) the chair of our audit committee received an increase in the additional annual cash compensation from $12,000 to $20,000, (ii) the other members of our audit committee received additional annual cash compensation of $10,000, and (iii) the chairs of each of our compensation and corporate governance committees received additional annual cash compensation of $10,000.
References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.
The following discussion should be read in conjunction with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this quarterly report on Form10-Q. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors in our annual report on Form 10-K for the year ended December 31, 2016 and elsewhere in this quarterly report on Form 10-Q.
Introduction
Blackstone Mortgage Trust is a real estate finance company that originates and purchases senior loans collateralized by properties in North America and Europe. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group L.P., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We are headquartered in New York City.
We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business primarily through our various subsidiaries.
I. Key Financial Measures and Indicators
As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Core Earnings, and book value per share. For the three months ended September 30, 2017 we recorded earnings per share of $0.61, declared a dividend of $0.62 per share, and reported $0.69 per share of Core Earnings. In addition, our book value per share as of September 30, 2017 was $26.52. As further described below, Core Earnings is a measure that is not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. We use Core Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan activity and operations.
Earnings Per Share and Dividends Declared
The following table sets forth the calculation of basic and diluted net income per share and dividends declared per share ($ in thousands, except per share data):
Three Months Ended | ||||||||
September 30, 2017 | June 30, 2017 | |||||||
Net income(1) | $ | 57,722 | $ | 50,613 | ||||
Weighted-average shares outstanding, basic and diluted | 95,013,087 | 95,005,873 | ||||||
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Net income per share, basic and diluted | $ | 0.61 | $ | 0.53 | ||||
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Dividends declared per share | $ | 0.62 | $ | 0.62 | ||||
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Core Earnings
Core Earnings is a non-GAAP measure, which we define as GAAP net income (loss), including realized gains and losses not otherwise included in GAAP net income (loss), and excluding (i) net income (loss) attributable to our CT Legacy Portfolio, (ii) non-cash equity compensation expense, (iii) depreciation and amortization, (iv) unrealized gains (losses), and (v) certain non-cash items. Core Earnings may also be adjusted from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as determined by our Manager, subject to approval by a majority of our independent directors.
We believe that Core Earnings provides meaningful information to consider in addition to our net income and cash flow from operating activities determined in accordance with GAAP. This adjusted measure helps us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations. Although, according to the management agreement between our Manager and us, or our Management Agreement, we calculate the incentive and base management fees due to our Manager using Core Earnings before incentive fees expense, we report Core Earnings after incentive fee expense, as we believe this is a more meaningful presentation of the economic performance of our class A common stock.
Core Earnings does not represent net income or cash generated from operating activities and should not be considered as an alternative to GAAP net income, or an indication of our GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs. In addition, our methodology for calculating Core Earnings may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported Core Earnings may not be comparable to the Core Earnings reported by other companies.
The following table provides a reconciliation of Core Earnings to GAAP net income ($ in thousands, except per share data):
Three Months Ended | ||||||||
September 30, 2017 | June 30, 2017 | |||||||
Net income(1) | $ | 57,722 | $ | 50,613 | ||||
Non-cash compensation expense | 5,944 | 5,959 | ||||||
GE purchase discount accretion adjustment(2) | (138 | ) | (198 | ) | ||||
Other items | 1,610 | 1,001 | ||||||
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Core Earnings | $ | 65,138 | $ | 57,375 | ||||
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Weighted-average shares outstanding, basic and diluted | 95,013,087 | 95,005,873 | ||||||
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Core Earnings per share, basic and diluted | $ | 0.69 | $ | 0.60 | ||||
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Book Value Per Share
The following table calculates our book value per share ($ in thousands, except per share data):
September 30, 2017 | June 30, 2017 | |||||||
Stockholders’ equity | $ | 2,519,614 | $ | 2,506,473 | ||||
Shares | ||||||||
Class A common stock | 94,828,007 | 94,827,579 | ||||||
Deferred stock units | 189,587 | 181,931 | ||||||
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Total outstanding | 95,017,594 | 95,009,510 | ||||||
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Book value per share | $ | 26.52 | $ | 26.38 | ||||
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II. Loan Portfolio
During the quarter ended September 30, 2017, we originated $1.1 billion of loans. Loan fundings during the quarter totaled $860.5 million and repayments totaled $870.8 million. We generated interest income of $146.4 million and incurred interest expense of $67.9 million during the quarter, which resulted in $78.6 million of net interest income during the three months ended September 30, 2017.
Portfolio Overview
The following table details our loan origination activity ($ in thousands):
Three Months Ended | Nine Months Ended | |||||||
September 30, 2017 | September 30, 2017 | |||||||
Loan originations(1) | $ | 1,095,994 | $ | 3,568,900 | ||||
Loan fundings(2) | $ | 860,482 | $ | 2,838,320 | ||||
Loan repayments(3) | (870,761 | ) | (2,093,567 | ) | ||||
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Total net fundings | $ | (10,279 | ) | $ | 744,753 | |||
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(1) Includes new loan originations and additional commitments made under existing loans. Loan originations during the three and nine months ended September 30, 2017 include $4.0 million of additional commitments under related non-consolidated senior interests. (2) Loan fundings during the three and nine months ended September 30, 2017 include $10.8 million and $49.0 million, respectively, of additional fundings under related non-consolidated senior interests. (3) Loan repayments during the three and nine months ended September 30, 2017 include $17.8 million and $122.8 million, respectively, of additional repayments under related non-consolidated senior interests. |
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The following table details overall statistics for our loan portfolio as of September 30, 2017 ($ in thousands):
Total Loan Exposure(1) | ||||||||||||||||
Balance Sheet Portfolio | Total Loan Portfolio | Floating Rate Loans | Fixed Rate Loans | |||||||||||||
Number of loans | 111 | 111 | 98 | 13 | ||||||||||||
Principal balance | $ | 9,681,055 | $ | 10,668,677 | $ | 9,793,239 | $ | 875,438 | ||||||||
Net book value | $ | 9,637,152 | $ | 10,621,408 | $ | 9,746,450 | $ | 874,958 | ||||||||
Unfunded loan commitments(2) | $ | 1,622,216 | $ | 1,673,300 | $ | 1,673,300 | $ | — | ||||||||
Weighted-average cash coupon(3) | 5.30 | % | 5.13 | % | L + 3.97 | % | 4.78 | % | ||||||||
Weighted-average all-in yield(3) | 5.68 | % | 5.55 | % | L + 4.36 | % | 5.69 | % | ||||||||
Weighted-average maximum maturity (years)(4) | 3.4 | 3.4 | 3.4 | 3.9 | ||||||||||||
Loan to value (LTV)(5) | 61.8 | % | 61.1 | % | 60.3 | % | 69.6 | % | ||||||||
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The charts below detail the geographic distribution and types of properties securing these loans, as of September 30, 2017:
Refer to section VI of this Item 2 for details of our loan portfolio, on a loan-by-loan basis.
Asset Management
We actively manage the investments in our loan portfolio and exercise the rights afforded to us as a lender, including collateral level budget approvals, lease approvals, loan covenant enforcement, escrow/reserve management/collection, collateral release approvals and other rights that we may negotiate.
As discussed in Note 2 to our consolidated financial statements, our Manager performs a quarterly review of our loan portfolio, assesses the performance of each loan, and assigns it a risk rating between “1” and “5,” from less risk to greater risk. The following table allocates the principal balance and total loan exposure balances based on our internal risk ratings ($ in thousands):
September 30, 2017 | ||||||||||
Risk | Number of Loans | Net Book Value | Total Loan Exposure(1) | |||||||
1 | 4 | $ | 421,313 | $ | 421,628 | |||||
2 | 49 | 3,701,801 | 3,708,603 | |||||||
3 | 57 | 5,493,409 | 6,517,829 | |||||||
4 | 1 | 20,629 | 20,617 | |||||||
5 | — | — | — | |||||||
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111 | $ | 9,637,152 | $ | 10,668,677 | ||||||
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The weighted-average risk rating of our total loan exposure was 2.6 and 2.5 as of September 30, 2017 and December 31, 2016, respectively. The increase in weighted-average risk rating was primarily driven by repayments of loans with lower risk ratings, and not rating downgrades in the existing portfolio.
Multifamily Joint Venture
As of September 30, 2017, our Multifamily Joint Venture held $146.1 million of loans, which are included in the loan disclosures above. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.
Portfolio Financing
Our portfolio financing arrangements include credit facilities, the GE portfolio acquisition facility, asset-specific financings, a revolving credit agreement, loan participations sold, non-consolidated senior interests, and securitized debt obligations.
The following table details our portfolio financing ($ in thousands):
Portfolio Financing | ||||||||
Outstanding Principal Balance | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
Credit facilities | $ | 4,386,645 | $ | 3,572,837 | ||||
GE portfolio acquisition facility | 1,090,946 | 1,479,582 | ||||||
Asset-specific financings | 517,256 | 679,207 | ||||||
Revolving credit agreement | 101,750 | — | ||||||
Loan participations sold | 33,193 | 349,633 | ||||||
Non-consolidated senior interests | 987,621 | 1,029,516 | ||||||
Securitized debt obligations | 474,620 | — | ||||||
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Total portfolio financing | $ | 7,592,031 | $ | 7,110,775 | ||||
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Credit Facilities
The following table details our credit facilities ($ in thousands):
September 30, 2017 | ||||||||||||||||||||
Maximum | Collateral | Credit Borrowings | ||||||||||||||||||
Lender | Facility Size(1) | Assets(2) | Potential(3) | Outstanding | Available(3) | |||||||||||||||
Wells Fargo | $ | 2,000,000 | $ | 2,232,117 | $ | 1,724,227 | $ | 1,398,224 | $ | 326,003 | ||||||||||
MetLife | 1,000,000 | 1,030,148 | 807,164 | 807,164 | — | |||||||||||||||
Bank of America | 750,000 | 818,359 | 641,066 | 641,066 | — | |||||||||||||||
Citibank(4) | 795,350 | 596,119 | 464,849 | 356,751 | 108,098 | |||||||||||||||
JP Morgan(5) | 500,000 | 453,121 | 344,656 | 295,984 | 48,672 | |||||||||||||||
Deutsche Bank | 500,000 | 393,564 | 295,743 | 295,743 | — | |||||||||||||||
Société Générale(6) | 472,560 | 332,761 | 266,000 | 266,000 | — | |||||||||||||||
Morgan Stanley(7) | 669,900 | 422,332 | 331,037 | 211,105 | 119,932 | |||||||||||||||
Bank of America - Multi. JV(8) | 200,000 | 87,000 | 69,600 | 69,600 | — | |||||||||||||||
Goldman Sachs - Multi. JV(8) | 250,000 | 59,125 | 45,008 | 45,008 | — | |||||||||||||||
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$ | 7,137,810 | $ | 6,424,646 | $ | 4,989,350 | $ | 4,386,645 | $ | 602,705 | |||||||||||
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The weighted-average outstanding balance of our credit facilities was $4.0 billion for the nine months ended September 30, 2017. As of September 30, 2017, we had aggregate borrowings of $4.4 billion outstanding under our credit facilities, with a weighted-average cash coupon of LIBOR plus 1.88% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.09% per annum, and a weighted-average advance rate of 78.8%. As of September 30, 2017, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.5 years.
Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan.
GE Portfolio Acquisition Facility
During the second quarter of 2015, concurrently with our acquisition of the GE portfolio, we entered into an agreement with Wells Fargo to provide us with secured financing for the acquired portfolio. As of September 30, 2017, this facility provided for $1.2 billion of financing, of which $1.1 billion was outstanding and an additional $129.4 million was available to finance future loan fundings in the GE portfolio. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for asset-specific borrowings for each collateral asset.
The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted-average rate of 80% of our purchase price of the collateral assets and are repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of September 30, 2017, those borrowings were denominated in U.S. Dollars, Canadian Dollars, and British Pounds Sterling. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. We had outstanding asset-specific borrowings under the GE portfolio acquisition facility of $1.1 billion and a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 1.75% per annum as of September 30, 2017.
Asset-Specific Financings
The following table details our asset-specific financings ($ in thousands):
September 30, 2017 | ||||||||||||||||||||
Principal | Book | Wtd. Avg. | Wtd. Avg. | |||||||||||||||||
Asset-Specific Financings | Count | Balance | Value | Yield/Cost(1) | Guarantee(2) | Term(3) | ||||||||||||||
Collateral assets | 5 | $ | 662,223 | $ | 659,152 | L+4.70 | % | n/a | Dec. 2020 | |||||||||||
Financing provided(4) | 5 | $ | 517,256 | $ | 516,537 | L+2.48 | % | $ | 162,517 | Dec. 2020 |
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Refer to Note 6 to our consolidated financial statements for additional terms and details of our secured debt agreements, including certain financial covenants.
Revolving Credit Agreement
During the second quarter of 2017, we increased the borrowing capacity under our secured revolving credit agreement with Barclays by $125.0 million to $250.0 million. This full recourse facility is designed to finance first mortgage originations for up to six months as a bridge to term financing or syndication. Advances under the agreement are subject to availability under a specified borrowing base and accrue interest at a per annum pricing rate equal to the sum of (i) an applicable base rate or Eurodollar rate and (ii) an applicable margin, in each case, dependent on the applicable type of loan collateral. The maturity date of the facility is April 4, 2020.
During the nine months ended September 30, 2017, the weighted-average outstanding borrowings under the revolving credit agreement were $23.5 million and we recorded interest expense of $1.7 million, including $575,000 of amortization of deferred fees and expenses. As of September 30, 2017, we had $101.8 million of borrowings outstanding under the agreement.
Loan Participations Sold
The following table details our loan participations sold ($ in thousands):
September 30, 2017 | ||||||||||||||||||||||
Principal | Book | |||||||||||||||||||||
Loan Participations Sold | Count | Balance | Value | Yield/Cost(1) | Guarantee(2) | Term | ||||||||||||||||
Total loan | 1 | $ | 93,710 | $ | 91,498 | L+5.96 | % | n/a | Feb. 2022 | |||||||||||||
Senior participation(3) | 1 | 33,193 | 33,193 | L+4.00 | % | n/a | Feb. 2022 |
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Refer to Note 7 to our consolidated financial statements for additional details of our loan participations sold.
Non-Consolidated Senior Interests
In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. These non-consolidated senior interests provide structural leverage for our net investments which are reflected in the form of mezzanine loans or other subordinate interests on our balance sheet and in our results of operations. The following table details the subordinate interests retained on our balance sheet and the related non-consolidated senior interests as of September 30, 2017 ($ in thousands):
September 30, 2017 | ||||||||||||||||||||||
Principal | Book | Wtd. Avg. | Wtd. Avg. | |||||||||||||||||||
Non-Consolidated Senior Interests | Count | Balance | Value | Yield/Cost(1) | Guarantee | Term | ||||||||||||||||
Total loan | 3 | $ | 1,203,306 | n/a | 5.97 | % | n/a | Sept. 2021 | ||||||||||||||
Senior participation | 3 | 987,621 | n/a | 4.37 | % | n/a | Sept. 2021 |
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Securitized Debt Obligations
The following table details our securitized debt obligations ($ in thousands):
September 30, 2017 | ||||||||||||||||||
Principal | Book | |||||||||||||||||
Securitized Debt Obligations | Count | Balance | Value | Yield/Cost(1) | Term(2) | |||||||||||||
Total loan | 1 | $ | 644,788 | $ | 641,262 | L+3.60 | % | June 2023 | ||||||||||
Securitized debt obligations(3) | 1 | 474,620 | 474,298 | L+1.94 | % | June 2033 |
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Refer to Notes 8 and 16 to our consolidated financial statements for additional details of our securitized debt obligations.
Floating Rate Portfolio
Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates will decrease net income. As of September 30, 2017, 92% of our loans by total loan exposure earned a floating rate of interest and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. As of September 30, 2017, the remaining 8% of our loans by total loan exposure earned a fixed rate of interest, but are financed with liabilities that pay interest at floating rates, which resulted in a negative correlation to rising interest rates to the extent of our financing. In certain instances where we have financed fixed rate assets with floating rate liabilities, we have purchased interest rate swaps or caps to limit our exposure to increases in interest rates on such liabilities.
Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities. The following table details our loan portfolio’s net exposure to interest rates by currency as of September 30, 2017 ($/£/€/C$ in thousands):
USD | GBP | EUR | CAD | |||||||||||||
Floating rate loans(1) | $ | 8,923,957 | £ | 306,606 | € | 109,732 | C$ | 410,145 | ||||||||
Floating rate debt(1)(2)(3) | (6,503,552 | ) | (172,553 | ) | (66,186 | ) | (358,905 | ) | ||||||||
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Net floating rate exposure(4) | $ | 2,420,405 | £ | 134,053 | € | 43,546 | C$ | 51,240 | ||||||||
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Convertible Notes
As of September 30, 2017, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands):
Convertible Notes Issuance | Face Value | Coupon Rate | All-in Cost(1) | Maturity | ||||||||||||
November 2013 | $ | 172,500 | 5.25 | % | 5.87 | % | December 1, 2018 | |||||||||
May 2017 | 402,500 | 4.38 | % | 4.85 | % | May 5, 2022 | ||||||||||
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Refer to Notes 2 and 9 to our consolidated financial statements for additional discussion of our Convertible Notes.
III. Our Results of Operations
Operating Results
The following table sets forth information regarding our consolidated results of operations ($ in thousands, except per share data):
Three Months Ended September 30, | 2017 vs 2016 | Nine Months Ended September 30, | 2017 vs 2016 | |||||||||||||||||||||
2017 | 2016 | $ | 2017 | 2016 | $ | |||||||||||||||||||
Income from loans and other investments | ||||||||||||||||||||||||
Interest and related income | $ | 146,446 | $ | 128,190 | $ | 18,256 | $ | 391,787 | $ | 381,686 | $ | 10,101 | ||||||||||||
Less: Interest and related expenses | 67,891 | 45,373 | 22,518 | 168,917 | 139,819 | 29,098 | ||||||||||||||||||
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Income from loans and other investments, net | 78,555 | 82,817 | (4,262 | ) | 222,870 | 241,867 | (18,997 | ) | ||||||||||||||||
Other expenses | ||||||||||||||||||||||||
Management and incentive fees | 13,243 | 13,701 | (458 | ) | 40,557 | 43,161 | (2,604 | ) | ||||||||||||||||
General and administrative expenses | 7,419 | 7,414 | 5 | 22,219 | 20,990 | 1,229 | ||||||||||||||||||
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Total other expenses | 20,662 | 21,115 | (453 | ) | 62,776 | 64,151 | (1,375 | ) | ||||||||||||||||
Gain on investments at fair value | — | 2,824 | (2,824 | ) | — | 13,413 | (13,413 | ) | ||||||||||||||||
Income from equity investment in unconsolidated subsidiary | — | 2,060 | (2,060 | ) | — | 2,192 | (2,192 | ) | ||||||||||||||||
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Income before income taxes | 57,893 | 66,586 | (8,693 | ) | 160,094 | 193,321 | (33,227 | ) | ||||||||||||||||
Income tax provision | 83 | 194 | (111 | ) | 265 | 281 | (16 | ) | ||||||||||||||||
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Net income | 57,810 | 66,392 | (8,582 | ) | 159,829 | 193,040 | (33,211 | ) | ||||||||||||||||
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Net income attributable to non-controlling interests | (88 | ) | (1,598 | ) | 1,510 | (88 | ) | (8,119 | ) | 8,031 | ||||||||||||||
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Net income attributable to Blackstone Mortgage Trust, Inc. | $ | 57,722 | $ | 64,794 | $ | (7,072 | ) | $ | 159,741 | $ | 184,921 | $ | (25,180 | ) | ||||||||||
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Net income per share - basic and diluted | $ | 0.61 | $ | 0.69 | $ | (0.08 | ) | $ | 1.68 | $ | 1.97 | $ | (0.29 | ) | ||||||||||
Dividends declared per share | $ | 0.62 | $ | 0.62 | $ | — | $ | 1.86 | $ | 1.86 | $ | — |
Income from loans and other investments, net
Income from loans and other investments, net decreased $4.3 million and $19.0 million during the three and nine months ended September 30, 2017, respectively, as compared to the corresponding periods in 2016. The decreases in both periods were primarily due to a decrease in non-recurring prepayment fee income and an increase in interest expense as a result of the convertible debt we issued in May 2017.
Other expenses
Other expenses are composed of management and incentive fees payable to our Manager and general and administrative expenses. Other expenses decreased by $453,000 during the three months ended September 30, 2017 compared to the corresponding period in 2016 due to (i) a decrease of $1.3 million of compensation expenses associated with our CT Legacy Portfolio incentive plans, and (ii) a decrease of $494,000 of incentive fees payable to our Manager. These were partially offset by (i) $964,000 of additional non-cash restricted stock amortization related to shares awarded under our long-term incentive plans, and (ii) an increase of $302,000 of general operating expenses.
Other expenses decreased by $1.4 million during the nine months ended September 30, 2017 compared to the nine months ended September 30, 2016 due to (i) a decrease of $2.8 million of incentive fees payable to our Manager, and (ii) a decrease of $2.2 million of compensation expenses associated with our CT Legacy Portfolio incentive plans. These were partially offset by (i) $3.3 million of additional non-cash restricted stock amortization related to shares awarded under our long-term incentive plans, (ii) an increase of $212,000 of management fees payable to our Manager, and (iii) an increase of $87,000 of general operating expenses.
Gain on investments at fair value
During the three and nine months ended September 30, 2016, we recognized $2.8 million and $13.4 million, respectively, of net gains on investments held by CT Legacy Partners. Our investment in CT Legacy Partners was substantially realized as of December 31, 2016.
Income from equity investment in unconsolidated subsidiary
During the three and nine months ended September 30, 2016, we recognized a $2.1 million gain and a $2.2 million gain, respectively, related to our promote interest from CTOPI. The investment in CTOPI was fully realized as of December 31, 2016.
Net income attributable to non-controlling interests
During the three and nine months ended September 30, 2017, our non-controlling interests related to our Multifamily Joint Venture. During the three and nine months ended September 30, 2016, our non-controlling interests related to CT Legacy Partners. In each case, the non-controlling interests represent the portion of the consolidated entity’s net income that is not owned by us.
During the three and nine months ended September 30, 2017, we recognized $88,000 of net income attributable to non-controlling interests related to our Multifamily Joint Venture. During the three and nine months ended September 30, 2016, we recognized $1.6 million and $8.1 million, respectively, of net income attributable to non-controlling interests which related to the gain on investments at fair value recognized by CT Legacy Partners during both periods.
Dividends per share
During the three months ended September 30, 2017, we declared a dividend of $0.62 per share, or $58.8 million, which was paid on October 13, 2017 to common stockholders of record as of September 30, 2017. During the three months ended September 30, 2016, we declared a dividend of $0.62 per share, or $58.2 million.
During the nine months ended September 30, 2017, we declared aggregate dividends of $1.86 per share, or $176.4 million. During the nine months ended September 30, 2016, we declared aggregate dividends of $1.86 per share, or $174.7 million.
IV. Liquidity and Capital Resources
Capitalization
We have capitalized our business to date through, among other things, the issuance and sale of shares of our class A common stock, borrowings under secured debt agreements, and the issuance and sale of Convertible Notes. As of September 30, 2017, we had 94,828,007 shares of our class A common stock outstanding representing $2.5 billion of stockholders’ equity, $6.1 billion of outstanding borrowings under secured debt agreements, and $575.0 million of Convertible Notes outstanding.
As of September 30, 2017, our secured debt agreements consisted of credit facilities with an outstanding balance of $4.4 billion, the GE portfolio acquisition facility with an outstanding balance of $1.1 billion, and $517.3 million of asset-specific financings. We also finance our business through the sale of loan participations and non-consolidated senior interests. As of September 30, 2017 we had $33.2 million of loan participations sold and $987.6 million of non-consolidated senior interests outstanding. In addition, as of September 30, 2017, our consolidated balance sheets included $474.6 million of securitized debt obligations related to the Securitization.
See Notes 6, 7, 8, and 9 to our consolidated financial statements for additional details regarding our secured debt agreements, loan participations sold, securitized debt obligations, and Convertible Notes, respectively.
Debt-to-Equity Ratio and Total Leverage Ratio
The following table presents our debt-to-equity ratio and total leverage ratio:
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Sources of Liquidity
Our primary sources of liquidity include cash and cash equivalents, available borrowings under our credit facilities and revolving credit agreement, and net receivables from servicers related to loan repayments which are set forth in the following table ($ in thousands):
September 30, 2017 | December 31, 2016 | |||||||
Cash and cash equivalents | $ | 61,221 | $ | 75,567 | ||||
Available borrowings under secured debt agreements | 639,828 | 541,743 | ||||||
Loan principal payments held by servicer, net(1) | 845 | 670 | ||||||
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$ | 701,894 | $ | 617,980 | |||||
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In addition to our current sources of liquidity, we have access to liquidity through public offerings of debt and equity securities. To facilitate such offerings, in July 2016, we filed a shelf registration statement with the Securities and Exchange Commission, or the SEC, that is effective for a term of three years and expires in July 2019. The amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit on the amount of securities we may issue. The securities covered by this registration statement include: (i) class A common stock; (ii) preferred stock; (iii) debt securities; (iv) depositary shares representing preferred stock; (v) warrants; (vi) subscription rights; (vii) purchase contracts; and (viii) units consisting of one or more of such securities or any combination of these securities. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.
We may also access liquidity through a dividend reinvestment plan and direct stock purchase plan, under which 9,997,356 shares of class A common stock were available for issuance as of September 30, 2017, and our at-the-market stock offering program, pursuant to which we may sell, from time to time, up to $188.6 million of additional shares of our class A common stock as of September 30, 2017. Refer to Note 11 to our consolidated financial statements for additional details.
Our existing loan portfolio also provides us with liquidity as loans are repaid or sold, in whole or in part, and the proceeds from such repayments become available for us to reinvest.
Liquidity Needs
In addition to our ongoing loan origination activity, our primary liquidity needs include interest and principal payments under our $6.1 billion of outstanding borrowings under secured debt agreements, our Convertible Notes, our unfunded loan commitments, dividend distributions to our stockholders, and operating expenses.
Contractual Obligations and Commitments
Our contractual obligations and commitments as of September 30, 2017 were as follows ($ in thousands):
Payment Timing | ||||||||||||||||||||
Total | Less Than | 1 to 3 | 3 to 5 | More Than | ||||||||||||||||
Obligation | 1 Year | Years | Years | 5 Years | ||||||||||||||||
Unfunded loan commitments(1) | $ | 1,622,216 | $ | 224,032 | $ | 1,294,133 | $ | 104,051 | $ | — | ||||||||||
Principal payments under secured debt agreements(2) | 6,096,597 | 2,221,319 | 3,629,304 | 245,974 | — | |||||||||||||||
Principal payments on convertible notes | 575,000 | — | 172,500 | 402,500 | — | |||||||||||||||
Interest payments(2)(3) | 400,423 | 204,915 | 164,633 | 30,875 | — | |||||||||||||||
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Total(4) | $ | 8,694,236 | $ | 2,650,266 | $ | 5,260,570 | $ | 783,400 | $ | — | ||||||||||
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We are also required to settle our foreign currency forward contracts and interest rate swaps with our derivative counterparties upon maturity which, depending on foreign exchange and interest rate movements, may result in cash received from or due to the respective counterparty. The table above does not include these amounts as they are not fixed and determinable. Refer to Note 10 to our consolidated financial statement for details regarding our derivative contracts.
We are required to pay our Manager a base management fee, an incentive fee, and reimbursements for certain expenses pursuant to our Management Agreement. The table above does not include the amounts payable to our Manager under our Management Agreement as they are not fixed and determinable. Refer to Note 12 to our consolidated financial statements for additional terms and details of the fees payable under our Management Agreement.
As a REIT, we generally must distribute substantially all of our net taxable income to stockholders in the form of dividends to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our taxable income does not necessarily equal our net income as calculated in accordance with GAAP, or our Core Earnings as described above.
Cash Flows
The following table provides a breakdown of the net change in our cash, cash equivalents, and restricted cash ($ in thousands):
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Cash flows provided by operating activities | $ | 176,539 | $ | 187,564 | ||||
Cash flows (used in) provided by investing activities | (319,687 | ) | 789,573 | |||||
Cash flows provided by (used in) financing activities | 157,100 | (989,730 | ) | |||||
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Net increase (decrease) in cash, cash equivalents, and restricted cash | $ | 13,952 | $ | (12,593 | ) | |||
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We experienced a net increase in cash, cash equivalents, and restricted cash of $14.0 million for the nine months ended September 30, 2017, compared to a net decrease of $12.6 million for the nine months ended September 30, 2016. During the nine months ended September 30, 2017, we (i) collected $2.0 billion of proceeds from loan principal repayments, (ii) received $394.1 million of net proceeds from the issuance of a convertible note offering, and (iii) borrowed a net $294.8 million under our secured debt agreements. We used the proceeds from our debt and equity financing activities to fund $2.3 billion of new loans during the nine months ended September 30, 2017.
Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity. Refer to Notes 6 and 7 to our consolidated financial statements for additional discussion of our secured debt agreements and participations sold.
V. Other Items
Income Taxes
We elected to be taxed as a REIT, effective January 1, 2003, under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws.
Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of September 30, 2017 and December 31, 2016, we were in compliance with all REIT requirements.
Refer to Note 13 to our consolidated financial statements for additional discussion of our income taxes.
11, 2020, other than a supplement to the accounting policy for our current expected credit loss reserve. Refer to Note 2 to our consolidated financial statements for thefurther description of the accounting policy for our current expected credit loss reserve and our other significant accounting policies.
Loan Type(1) | Origination | Total Loan(3) | Principal Balance(3) | Net Book Value | Cash Coupon(4) | All-in Yield(4) | Maximum | Location | Property | Loan Per SQFT / Unit / Key | LTV(2) | Risk | ||||||||||||||||||||||||||
1 | Senior loan | 5/11/2017 | $ | 752.6 | $644.8 | $ | 641.3 | L + 3.40 % | L + 3.60 % | 6/10/2023 | Virginia | Office | 316 / sqft | 62% | 3 | |||||||||||||||||||||||
2 | Senior loan(3) | 5/15/2015 | 590.0 | 531.4 | 89.9 | L + 4.25 % | L + 4.74 % | 5/15/2020 | Miami | Retail | 674 / sqft | 36% | 3 | |||||||||||||||||||||||||
3 | Senior loan(3) | 8/6/2015 | 494.8 | 494.8 | 89.7 | 4.49% | 5.82% | 10/29/2022 | Diversified - EUR | Other | n/a | 71% | 3 | |||||||||||||||||||||||||
4 | Senior loan | 5/1/2015 | 320.3 | 294.5 | 293.9 | L + 3.45 % | L + 3.83 % | 5/1/2020 | New York | Office | 375 / sqft | 68% | 3 | |||||||||||||||||||||||||
5 | Senior loan | 1/7/2015 | 315.0 | 293.8 | 293.0 | L + 3.50 % | L + 3.71 % | 1/9/2021 | New York | Office | 252 / sqft | 53% | 2 | |||||||||||||||||||||||||
6 | Senior loan | 6/4/2015 | 274.4 | 274.4 | 277.6 | L + 4.34 % | L + 4.20 % | 9/2/2020 | Diversified - CAN | Hotel | 42,371 / key | 54% | 2 | |||||||||||||||||||||||||
7 | Senior loan | 3/31/2017 | 258.4 | 241.5 | 239.3 | L + 4.15 % | L + 4.54 % | 4/9/2022 | Maui | Hotel | 318,182 / key | 75% | 3 | |||||||||||||||||||||||||
8 | Senior loan | 6/23/2015 | 222.7 | 215.1 | 214.7 | L + 3.65 % | L + 3.97 % | 5/8/2022 | Washington DC | Office | 241 / sqft | 72% | 2 | |||||||||||||||||||||||||
9 | Senior loan | 7/31/2014 | 215.0 | 213.3 | 213.1 | L + 3.40 % | L + 3.52 % | 8/9/2019 | Chicago | Office | 281 / sqft | 64% | 1 | |||||||||||||||||||||||||
10 | Senior loan | 8/3/2016 | 275.9 | 194.1 | 192.3 | L + 4.66 % | L + 5.21 % | 8/9/2021 | New York | Office | 267 / sqft | 57% | 3 | |||||||||||||||||||||||||
11 | Senior loan | 8/19/2016 | 200.0 | 189.8 | 189.5 | L + 3.64 % | L + 4.10 % | 9/9/2021 | New York | Office | 579 / sqft | 69% | 3 | |||||||||||||||||||||||||
12 | Senior loan | 4/15/2016 | 200.0 | 188.8 | 188.1 | L + 4.25 % | L + 4.86 % | 5/9/2021 | New York | Office | 176 / sqft | 40% | 3 | |||||||||||||||||||||||||
13 | Senior loan | 2/25/2014 | 181.0 | 181.0 | 180.8 | L + 4.75 % | L + 5.07 % | 3/9/2019 | Diversified - US | Hotel | 95,113 / key | 58% | 2 | |||||||||||||||||||||||||
14 | Senior loan(3) | 6/30/2015 | 180.1 | 177.1 | 34.9 | L + 4.75 % | L + 5.16 % | 8/15/2022 | San Francisco | Condo | 827 / sqft | 60% | 3 | |||||||||||||||||||||||||
15 | Senior loan | 12/22/2016 | 204.5 | 171.9 | 170.5 | L + 3.50 % | L + 4.07 % | 1/9/2022 | New York | Office | 242 / sqft | 66% | 3 | |||||||||||||||||||||||||
16 | Senior loan | 8/17/2016 | 186.7 | 169.1 | 168.0 | L + 3.75 % | L + 4.13 % | 9/9/2021 | San Francisco | Office | 492 / sqft | 65% | 3 | |||||||||||||||||||||||||
17 | Senior loan | 8/31/2017 | 183.0 | 165.4 | 163.6 | L + 3.00 % | L + 3.40 % | 9/9/2022 | Orange County | Office | 196 / sqft | 64% | 3 | |||||||||||||||||||||||||
18 | Senior loan | 5/16/2017 | 189.2 | 163.8 | 162.0 | L + 3.90 % | L + 4.29 % | 5/16/2021 | Chicago | Office | 123 / sqft | 59% | 3 | |||||||||||||||||||||||||
19 | Senior loan | 3/8/2016 | 181.2 | 161.7 | 160.6 | L + 3.55 % | L + 3.85 % | 3/9/2021 | Orange County | Office | 203 / sqft | 52% | 3 | |||||||||||||||||||||||||
20 | Senior loan | 6/3/2016 | 160.0 | 160.0 | 160.0 | L + 4.42 % | L + 4.42 % | 6/9/2021 | Los Angeles | Office | 86 / sqft | 41% | 2 | |||||||||||||||||||||||||
21 | Senior loan | 2/17/2017 | 150.0 | 150.0 | 148.8 | L + 4.65 % | L + 5.04 % | 3/9/2022 | Honolulu | Hotel | 240,770 / key | 65% | 3 | |||||||||||||||||||||||||
22 | Senior loan | 10/30/2013 | 140.0 | 140.0 | 139.8 | L + 4.38 % | L + 4.54 % | 9/9/2020 | San Francisco | Hotel | 215,716 / key | 66% | 2 | |||||||||||||||||||||||||
23 | Senior loan | 10/5/2016 | 145.5 | 139.4 | 138.5 | L + 4.35 % | L + 4.84 % | 10/9/2021 | Diversified - US | Hotel | 52,558 / key | 61% | 2 | |||||||||||||||||||||||||
24 | Senior loan | 8/23/2017 | 165.0 | 135.8 | 134.1 | L + 3.25 % | L + 3.64 % | 10/9/2022 | Los Angeles | Office | 276 / sqft | 74% | 3 | |||||||||||||||||||||||||
25 | Senior loan | 10/26/2016 | 133.5 | 133.5 | 132.5 | L + 4.20 % | L + 4.57 % | 11/9/2021 | Oakland | Office | 137 / sqft | 72% | 2 | |||||||||||||||||||||||||
26 | Senior loan | 1/30/2014 | 133.4 | 133.4 | 133.1 | L + 4.30 % | L + 5.32 % | 12/1/2017 | New York | Hotel | 212,341 / key | 38% | 2 | |||||||||||||||||||||||||
27 | Senior loan | 2/12/2016 | 225.0 | 124.6 | 122.4 | L + 5.75 % | L + 7.08 % | 2/11/2021 | Seattle | Office | 165 / sqft | 48% | 3 | |||||||||||||||||||||||||
28 | Senior loan | 6/29/2017 | 141.1 | 121.0 | 119.7 | L + 3.35 % | L + 3.77 % | 7/9/2022 | Torrance | Multi | 239,139 / unit | 68% | 3 | |||||||||||||||||||||||||
29 | Senior loan | 12/9/2014 | 141.5 | 120.4 | 120.4 | L + 3.80 % | L + 3.80 % | 12/9/2019 | Diversified - US | Office | 79 / sqft | 65% | 2 | |||||||||||||||||||||||||
30 | Senior loan | 10/17/2016 | 111.2 | 111.2 | 110.4 | L + 3.95 % | L + 4.31 % | 10/21/2021 | Diversified - UK | Other | 158 / sqft | 73% | 3 |
continued…
Loan Type (1) | Origination Date (2) | Total Loan (3)(4) | Principal Balance (4) | Net Book Value | Cash Coupon (5) | All-in Yield (5) | Maximum Maturity (6) | Location | Property Type | Loan Per SQFT / Unit / Key | LTV (2) | Risk Rating | ||||||||||||||||||||||||||
1 | Senior loan | 8/14/2019 | $ | 1,333.1 | $ | 1,333.1 | $ | 1,323.2 | L + 2.50% | L + 2.85% | 12/23/2024 | Dublin - IE | Office | $460 / sqft | 74% | 3 | ||||||||||||||||||||||
2 | Senior loan | 3/22/2018 | 979.9 | 979.9 | 976.7 | L + 3.15% | L + 3.37% | 3/15/2023 | Diversified - Spain | Mixed-Use | n/a | 71% | 4 | |||||||||||||||||||||||||
3 | Senior loan | 11/25/2019 | 724.2 | 625.1 | 625.1 | L + 2.30% | L + 2.75% | 12/9/2024 | New York | Office | $896 / sqft | 65% | 3 | |||||||||||||||||||||||||
4 | Senior loan | 5/11/2017 | 646.8 | 615.2 | 614.4 | L + 3.40% | L + 3.57% | 6/10/2023 | Washington DC | Office | $302 / sqft | 62% | 3 | |||||||||||||||||||||||||
5 | Senior loan (4) | 8/6/2015 | 458.3 | 458.3 | 83.7 | 5.75% | 5.77% | 10/29/2022 | Diversified - EUR | Other | n/a | 71% | 3 | |||||||||||||||||||||||||
6 | Senior loan | 8/22/2018 | 362.5 | 349.8 | 348.4 | L + 3.15% | L + 3.49% | 8/9/2023 | Maui | Hospitality | $454,293 / key | 61% | 4 | |||||||||||||||||||||||||
7 | Senior loan | 10/23/2018 | 352.4 | 345.3 | 344.8 | L + 3.40% | L + 3.87% | 10/23/2021 | New York | Mixed-Use | $585 / sqft | 65% | 3 | |||||||||||||||||||||||||
8 | Senior loan | 4/11/2018 | 355.0 | 344.5 | 343.8 | L + 2.85% | L + 3.10% | 5/1/2023 | New York | Office | $437 / sqft | 71% | 2 | |||||||||||||||||||||||||
9 | Senior loan | 1/11/2019 | 297.7 | 297.7 | 294.5 | L + 4.35% | L + 4.70% | 1/11/2026 | Diversified - UK | Other | $294 / sqft | 74% | 4 | |||||||||||||||||||||||||
10 | Senior loan | 11/30/2018 | 292.9 | 281.4 | 279.9 | L + 2.85% | L + 3.20% | 12/9/2023 | New York | Hospitality | $301,581 / key | 73% | 5 | |||||||||||||||||||||||||
11 | Senior loan | 2/27/2020 | 300.0 | 279.0 | 276.5 | L + 2.70% | L + 3.03% | 3/9/2025 | New York | Mixed-Use | $875 / sqft | 59% | 3 | |||||||||||||||||||||||||
12 | Senior loan | 7/31/2018 | 279.5 | 276.8 | 275.5 | L + 3.10% | L + 3.52% | 8/9/2022 | San Francisco | Office | $698 / sqft | 50% | 2 | |||||||||||||||||||||||||
13 | Senior loan | 12/11/2018 | 310.0 | 254.3 | 252.6 | L + 2.55% | L + 2.96% | 12/9/2023 | Chicago | Office | $214 / sqft | 78% | 3 | |||||||||||||||||||||||||
14 | Senior loan | 11/30/2018 | 253.9 | 248.2 | 247.0 | L + 2.80% | L + 3.17% | 12/9/2023 | San Francisco | Hospitality | $364,513 / key | 73% | 4 | |||||||||||||||||||||||||
15 | Senior loan | 9/23/2019 | 280.9 | 234.3 | 231.9 | L + 3.00% | L + 3.22% | 11/15/2024 | Diversified - Spain | Hospitality | $125,124 / key | 62% | 4 | |||||||||||||||||||||||||
16 | Senior loan | 5/9/2018 | 242.9 | 232.9 | 232.6 | L + 2.60% | L + 3.13% | 5/9/2023 | New York | Industrial | $66 / sqft | 70% | 2 | |||||||||||||||||||||||||
17 | Senior loan | 10/23/2018 | 290.4 | 230.8 | 229.4 | L + 2.80% | L + 2.89% | 11/9/2024 | Atlanta | Office | $215 / sqft | 64% | 2 | |||||||||||||||||||||||||
18 | Senior loan (4) | 8/7/2019 | 745.8 | 226.5 | 43.1 | L + 3.12% | L + 3.48% | 9/9/2025 | Los Angeles | Office | $153 / sqft | 59% | 3 | |||||||||||||||||||||||||
19 | Senior loan | 9/30/2019 | 305.5 | 226.4 | 226.5 | L + 3.66% | L + 3.75% | 9/9/2024 | Chicago | Office | $196 / sqft | 58% | 3 | |||||||||||||||||||||||||
20 | Senior loan | 4/17/2018 | 225.0 | 224.8 | 224.6 | L + 3.25% | L + 3.47% | 5/9/2023 | New York | Office | $209 / sqft | 45% | 2 | |||||||||||||||||||||||||
21 | Senior loan | 7/20/2017 | 249.5 | 218.6 | 218.3 | L + 4.80% | L + 5.74% | 8/9/2022 | San Francisco | Office | $363 / sqft | 58% | 2 | |||||||||||||||||||||||||
22 | Senior loan | 6/23/2015 | 209.9 | 209.9 | 209.5 | L + 3.65% | L + 3.91% | 5/8/2022 | Washington DC | Office | $235 / sqft | 72% | 2 | |||||||||||||||||||||||||
23 | Senior loan | 12/12/2019 | 260.5 | 200.3 | 199.4 | L + 2.40% | L + 2.68% | 12/9/2024 | New York | Office | $95 / sqft | 42% | 1 | |||||||||||||||||||||||||
24 | Senior loan | 8/31/2017 | 203.0 | 194.7 | 194.4 | L + 2.50% | L + 2.75% | 9/9/2023 | Orange County | Office | $227 / sqft | 64% | 3 | |||||||||||||||||||||||||
25 | Senior loan | 12/22/2016 | 204.5 | 190.2 | 190.1 | L + 2.90% | L + 2.98% | 12/9/2022 | New York | Office | $267 / sqft | 64% | 3 | |||||||||||||||||||||||||
26 | Senior loan | 6/27/2019 | 215.4 | 188.9 | 187.4 | L + 2.80% | L + 3.16% | 8/15/2026 | Berlin - DEU | Office | $405 / sqft | 62% | 3 | |||||||||||||||||||||||||
27 | Senior loan | 11/5/2019 | 216.1 | 188.5 | 186.7 | L + 3.85% | L + 4.45% | 2/21/2025 | Diversified - IT | Industrial | $373 / sqft | 66% | 3 | |||||||||||||||||||||||||
28 | Senior loan | 6/4/2018 | 187.8 | 187.8 | 187.2 | L + 3.50% | L + 3.86% | 6/9/2024 | New York | Hospitality | $309,308 / key | 52% | 4 | |||||||||||||||||||||||||
29 | Senior loan | 4/9/2018 | 1,486.5 | 185.0 | 173.1 | L + 8.50% | L + 10.64% | 6/9/2025 | New York | Office | $525 / sqft | 48% | 2 | |||||||||||||||||||||||||
30 | Senior loan | 9/25/2019 | 182.5 | 182.5 | 181.3 | L + 4.35% | L + 4.93% | 9/26/2023 | London - UK | Office | $832 / sqft | 72% | 3 |
Loan Type(1) | Origination | Total Loan(3) | Principal Balance(3) | Net Book Value | Cash Coupon(4) | All-in Yield(4) | Maximum | Location | Property | Loan Per SQFT / Unit / Key | LTV(2) | Risk | ||||||||||||||||||||||||||
31 | Senior loan | 2/20/2014 | 110.0 | 110.0 | 109.7 | L + 3.95 % | L + 4.16 % | 3/9/2021 | Long Island | Office | 162 / sqft | 74% | 2 | |||||||||||||||||||||||||
32 | Senior loan | 2/18/2016 | 107.2 | 107.2 | 106.9 | L + 3.75 % | L + 4.41 % | 4/20/2019 | London - UK | Office | 913 / sqft | 44% | 3 | |||||||||||||||||||||||||
33 | Senior loan | 6/24/2015 | 107.3 | 103.7 | 103.4 | L + 4.25 % | L + 4.62 % | 7/9/2020 | Honolulu | Hotel | 173,921 / key | 67% | 2 | |||||||||||||||||||||||||
34 | Senior loan | 7/28/2016 | 119.0 | 103.4 | 102.7 | L + 3.60 % | L + 4.00 % | 8/9/2021 | Atlanta | Office | 164 / sqft | 70% | 3 | |||||||||||||||||||||||||
35 | Senior loan | 3/12/2015 | 101.2 | 101.1 | 101.0 | L + 3.25 % | L + 3.61 % | 3/11/2020 | Orange County | Office | 268 / sqft | 66% | 1 | |||||||||||||||||||||||||
36 | Senior loan | 4/27/2016 | 100.8 | 100.8 | 100.7 | L + 4.35 % | L + 5.02 % | 5/9/2021 | Chicago | Office | 134 / sqft | 74% | 2 | |||||||||||||||||||||||||
37 | Senior loan | 1/22/2016 | 128.5 | 97.8 | 97.2 | L + 4.25 % | L + 4.76 % | 2/9/2021 | Los Angeles | Retail | 254 / sqft | 64% | 3 | |||||||||||||||||||||||||
38 | Senior loan | 6/23/2015 | 93.8 | 93.8 | 95.9 | L + 4.30 % | L + 4.83 % | 1/27/2018 | Diversified - US | Other | 231,631 / unit | 57% | 3 | |||||||||||||||||||||||||
39 | Senior loan | 1/26/2017 | 288.0 | 93.7 | 91.5 | L + 5.50 % | L + 5.96 % | 2/9/2022 | Boston | Office | 252 / sqft | 42% | 2 | |||||||||||||||||||||||||
40 | Senior loan | 3/10/2016 | 98.5 | 90.7 | 90.2 | L + 4.10 % | L + 4.52 % | 4/9/2021 | Chicago | Multi | 625,799 / unit | 63% | 3 | |||||||||||||||||||||||||
41 | Senior loan | 5/16/2014 | 100.0 | 90.6 | 90.1 | L + 3.85 % | L + 4.21 % | 4/9/2022 | Miami | Office | 208 / sqft | 67% | 3 | |||||||||||||||||||||||||
42 | Senior loan | 5/22/2014 | 98.7 | 85.8 | 85.6 | L + 3.75 % | L + 4.07 % | 6/15/2021 | Orange County | Office | 150 / sqft | 67% | 2 | |||||||||||||||||||||||||
43 | Senior loan | 2/18/2015 | 89.9 | 85.6 | 85.6 | L + 3.75 % | L + 3.75 % | 3/9/2020 | Diversified - CA | Office | 177 / sqft | 71% | 2 | |||||||||||||||||||||||||
44 | Senior loan | 7/23/2014 | 90.0 | 85.0 | 84.7 | L + 3.85 % | L + 4.07 % | 7/9/2020 | Atlanta | Office | 170 / sqft | 43% | 2 | |||||||||||||||||||||||||
45 | Senior loan | 1/31/2017 | 134.8 | 84.8 | 83.7 | L + 5.00 % | L + 5.49 % | 2/9/2022 | Boston | Other | 460 / sqft | 60% | 3 | |||||||||||||||||||||||||
46 | Senior loan | 7/11/2014 | 87.2 | 82.2 | 81.7 | L + 3.55 % | L + 3.83 % | 8/9/2020 | Chicago | Office | 160 / sqft | 65% | 2 | |||||||||||||||||||||||||
47 | Senior loan | 10/28/2014 | 85.0 | 82.1 | 82.0 | L + 3.75 % | L + 4.12 % | 11/9/2019 | New York | Retail | 1,534 / sqft | 78% | 2 | |||||||||||||||||||||||||
48 | Senior loan | 6/23/2015 | 80.9 | 80.9 | 81.3 | L + 3.65 % | L + 3.82 % | 11/30/2018 | Diversified - US | Hotel | 68,474 / key | 83% | 2 | |||||||||||||||||||||||||
49 | Senior loan | 5/1/2015 | 83.5 | 79.7 | 79.5 | L + 3.95 % | L + 4.31 % | 5/9/2020 | Maryland | Hotel | 204,238 / key | 67% | 2 | |||||||||||||||||||||||||
50 | Senior loan | 2/12/2016 | 100.0 | 79.5 | 79.4 | L + 4.15 % | L + 4.68 % | 3/9/2021 | Long Island | Office | 119 / sqft | 65% | 3 | |||||||||||||||||||||||||
51 | Senior loan | 6/23/2015 | 75.4 | 75.2 | 75.3 | 5.19 % | (6) | 5.50 % | (6) | 8/31/2020 | Diversified - FL | MHC | 20,512 / unit | 69% | 1 | |||||||||||||||||||||||
52 | Senior loan | 6/4/2015 | 77.6 | 74.2 | 74.8 | 5.13 % | (6) | 5.43 % | (6) | 3/28/2019 | Diversified - CAN | Retail | 43 / sqft | 74% | 3 | |||||||||||||||||||||||
53 | Senior loan | 8/18/2017 | 82.3 | 73.2 | 72.5 | L + 4.10 % | L + 4.46 % | 8/18/2022 | Brussels | Office | 103 / sqft | 59% | 3 | |||||||||||||||||||||||||
54 | Senior loan | 3/31/2017 | 91.2 | 68.3 | 67.5 | L + 4.30 % | L + 4.87 % | 4/9/2022 | New York | Office | 335 / sqft | 64% | 3 | |||||||||||||||||||||||||
55 | Senior loan | 2/27/2015 | 102.2 | 67.7 | 67.0 | L + 3.55 % | L + 3.92 % | 4/28/2022 | Chicago | Office | 140 / sqft | 65% | 2 | |||||||||||||||||||||||||
56 | Senior loan | 9/1/2017 | 76.0 | 65.0 | 64.3 | L + 4.15 % | L + 4.58 % | 9/9/2021 | New York | Condo | 685 / sqft | 64% | 3 | |||||||||||||||||||||||||
57 | Senior loan | 10/6/2014 | 67.0 | 64.4 | 64.2 | L + 4.35 % | L + 4.61 % | 10/9/2019 | Long Island | Hotel | 104,698 / key | 56% | 3 | |||||||||||||||||||||||||
58 | Senior loan | 11/30/2016 | 79.0 | 63.9 | 63.3 | L + 3.95 % | L + 4.39 % | 12/9/2021 | Chicago | Retail | 1,263 / sqft | 54% | 3 | |||||||||||||||||||||||||
59 | Senior loan | 6/29/2016 | 75.4 | 63.7 | 63.2 | L + 3.65 % | L + 4.08 % | 7/9/2021 | Fort Lauderdale | Office | 246 / sqft | 64% | 3 | |||||||||||||||||||||||||
60 | Senior loan | 5/11/2017 | 135.9 | 62.7 | 61.5 | L + 3.40 % | L + 3.91 % | 6/10/2023 | Virginia | Office | 146 / sqft | 38% | 2 |
continued…
Loan Type(1) | Origination | Total Loan(3) | Principal Balance(3) | Net Book Value | Cash Coupon(4) | All-in Yield(4) | Maximum | Location | Property | Loan Per SQFT / Unit / Key | LTV(2) | Risk | ||||||||||||||||||||||||||
61 | Senior loan | 3/11/2014 | 65.0 | 62.1 | 62.1 | L + 4.50 % | L + 4.77 % | 4/9/2019 | New York | Multi | 698,177 / unit | 65% | 3 | |||||||||||||||||||||||||
62 | Senior loan | 7/13/2017 | 86.3 | 60.0 | 59.2 | L + 3.75 % | L + 4.18 % | 8/9/2022 | Honolulu | Hotel | 192,926 / key | 66% | 3 | |||||||||||||||||||||||||
63 | Senior loan | 1/13/2014 | 60.0 | 60.0 | 59.5 | L + 3.45 % | L + 4.89 % | 6/9/2020 | New York | Office | 284 / sqft | 53% | 2 | |||||||||||||||||||||||||
64 | Senior loan | 5/9/2017 | 73.7 | 59.3 | 58.7 | L + 3.85 % | L + 4.30 % | 5/9/2022 | New York | Multi | 357,510 / unit | 67% | 3 | |||||||||||||||||||||||||
65 | Senior loan | 6/29/2017 | 64.2 | 57.5 | 56.9 | L + 3.40 % | L + 3.71 % | 7/9/2023 | New York | Multi | 167,638 / unit | 69% | 3 | |||||||||||||||||||||||||
66 | Senior loan | 6/4/2015 | 57.0 | 57.0 | 56.8 | L + 3.25 % | L + 4.09 % | 1/6/2018 | Norwich - UK | Retail | 156 / sqft | 55% | 2 | |||||||||||||||||||||||||
67 | Senior loan | 11/28/2013 | 63.0 | 56.2 | 56.2 | L + 4.38 % | L + 5.30 % | 1/20/2019 | London - UK | Office | 689 / sqft | 58% | 3 | |||||||||||||||||||||||||
68 | Senior loan | 7/21/2017 | 55.4 | 55.4 | 55.4 | L + 3.95 % | L + 4.15 % | 4/1/2019 | Broomfield | Multi | 153,889 / unit | 49% | 2 | |||||||||||||||||||||||||
69 | Senior loan | 9/9/2014 | 56.0 | 52.5 | 52.4 | L + 4.00 % | L + 4.25 % | 9/9/2019 | Ft. Lauderdale | Office | 150 / sqft | 71% | 2 | |||||||||||||||||||||||||
70 | Senior loan | 5/20/2015 | 52.4 | 52.4 | 52.7 | L + 3.50 % | L + 3.75 % | 12/31/2018 | Chicago | Office | 133 / sqft | 67% | 3 | |||||||||||||||||||||||||
71 | Senior loan | 11/23/2016 | 55.4 | 50.0 | 49.6 | L + 3.50 % | L + 3.80 % | 12/9/2022 | New York | Multi | 208,333 / unit | 65% | 3 | |||||||||||||||||||||||||
72 | Senior loan | 5/20/2015 | 58.0 | 49.5 | 49.5 | 5.25 % | (6) | 5.52 % | (6) | 6/30/2019 | Charlotte | Office | 98 / sqft | 71% | 3 | |||||||||||||||||||||||
73 | Senior loan | 12/27/2016 | 57.2 | 49.5 | 49.0 | L + 4.65 % | L + 5.08 % | 1/9/2022 | New York | Multi | 1,260,476 / unit | 64% | 3 | |||||||||||||||||||||||||
74 | Senior loan | 9/1/2016 | 47.6 | 47.6 | 47.5 | L + 4.35 % | L + 4.97 % | 9/1/2021 | Atlanta | Multi | 240,517 / unit | 72% | 3 | |||||||||||||||||||||||||
75 | Senior loan | 9/22/2016 | 46.0 | 45.5 | 45.3 | L + 4.25 % | L + 4.90 % | 10/9/2019 | New York | Office | 456 / sqft | 51% | 3 | |||||||||||||||||||||||||
76 | Senior loan | 11/19/2015 | 50.0 | 45.3 | 45.3 | L + 4.00 % | L + 4.32 % | 10/9/2018 | New York | Office | 1,163 / sqft | 57% | 3 | |||||||||||||||||||||||||
77 | Senior loan | 2/9/2017 | 46.6 | 44.4 | 44.0 | L + 4.50 % | L + 4.98 % | 2/9/2022 | London | Office | 726 / sqft | 69% | 3 | |||||||||||||||||||||||||
78 | Senior loan | 8/29/2017 | 51.2 | 43.5 | 43.0 | L + 3.10 % | L + 3.52 % | 10/9/2022 | Southern California | Industrial | 91 / sqft | 65% | 3 | |||||||||||||||||||||||||
79 | Senior loan | 3/26/2014 | 42.9 | 42.9 | 42.8 | L + 4.30 % | L + 4.56 % | 4/9/2019 | East Bay | Office | 123 / sqft | 71% | 2 | |||||||||||||||||||||||||
80 | Senior loan | 6/11/2015 | 39.5 | 39.5 | 39.7 | 5.18 % | (6) | 5.41 % | (6) | 9/30/2020 | Diversified - US | MHC | 22,584 / unit | 79% | 2 | |||||||||||||||||||||||
81 | Senior loan | 6/26/2015 | 42.1 | 38.8 | 38.8 | L + 3.75 % | L + 3.76 % | 7/9/2020 | San Diego | Office | 177 / sqft | 73% | 2 | |||||||||||||||||||||||||
82 | Senior loan | 11/17/2014 | 38.5 | 38.5 | 38.4 | L + 5.50 % | L + 6.17 % | 12/9/2019 | Diversified - CAN | Office | 61 / sqft | 53% | 2 | |||||||||||||||||||||||||
83 | Senior loan | 5/20/2015 | 37.9 | 37.9 | 38.0 | 4.66 % | (6) | 5.19 % | (6) | 1/31/2019 | Los Angeles | Office | 176 / sqft | 59% | 2 | |||||||||||||||||||||||
84 | Senior loan | 8/25/2015 | 43.8 | 37.4 | 37.3 | L + 4.50 % | L + 4.76 % | 9/9/2018 | Los Angeles | Office | 166 / sqft | 46% | 3 | |||||||||||||||||||||||||
85 | Senior loan | 6/12/2014 | 34.8 | 34.8 | 34.7 | L + 4.00 % | L + 4.36 % | 6/30/2018 | Los Angeles | Office | 39 / sqft | 44% | 2 | |||||||||||||||||||||||||
86 | Senior loan | 10/22/2015 | 34.8 | 34.8 | 34.8 | L + 4.50 % | L + 5.03 % | 10/22/2018 | London - UK | Office | 2,614 / sqft | 64% | 3 | |||||||||||||||||||||||||
87 | Senior loan | 6/11/2015 | 34.0 | 34.0 | 34.1 | 5.34% | 5.58% | 5/31/2020 | Diversified - US | MHC | 20,801 / unit | 65% | 2 | |||||||||||||||||||||||||
88 | Senior loan | 7/14/2017 | 32.8 | 32.8 | 32.8 | L + 4.35 % | L + 4.58 % | 8/1/2018 | Davis | Multi | 215,461 / unit | 59% | 2 | |||||||||||||||||||||||||
89 | Senior loan | 5/20/2015 | 36.5 | 32.0 | 31.9 | L + 3.60 % | L + 4.07 % | 7/11/2019 | Los Angeles | Office | 387 / sqft | 46% | 1 | |||||||||||||||||||||||||
90 | Senior loan | 4/17/2015 | 31.9 | 31.9 | 31.8 | L + 4.50 % | L + 4.95 % | 4/20/2020 | Hague - NL | Hotel | 104,241 / key | 71% | 2 |
continued…
Loan Type(1) | Origination | Total Loan(3) | Principal Balance(3) | Net Book Value | Cash Coupon(4) | All-in Yield(4) | Maximum | Location | Property | Loan Per SQFT / Unit / Key | LTV(2) | Risk | ||||||||||||||||||||||||||
91 | Senior loan | 2/28/2014 | 26.0 | 26.0 | 26.0 | L + 4.00 % | L + 4.26 % | 3/9/2019 | Phoenix | Other | 123,223 / unit | 69% | 2 | |||||||||||||||||||||||||
92 | Senior loan | 6/11/2015 | 25.9 | 25.9 | 25.9 | 5.25 % | (6) | 5.74 % | (6) | 11/30/2020 | West Palm Beach | MHC | 53,418 / unit | 75% | 2 | |||||||||||||||||||||||
93 | Senior loan | 6/18/2014 | 24.5 | 24.5 | 24.4 | L + 4.00 % | L + 4.43 % | 7/20/2019 | Diversified - NL | Office | 64 / sqft | 69% | 3 | |||||||||||||||||||||||||
94 | Senior loan | 6/11/2015 | 24.4 | 24.4 | 24.4 | 5.37 % | (6) | 5.87 % | (6) | 11/30/2020 | Ft. Lauderdale | MHC | 49,523 / unit | 70% | 2 | |||||||||||||||||||||||
95 | Senior loan | 5/28/2015 | 48.7 | 21.7 | 21.7 | L + 4.00 % | L + 4.57 % | 6/30/2018 | Los Angeles | Office | 25 / sqft | 53% | 2 | |||||||||||||||||||||||||
96 | Senior loan | 6/4/2015 | 21.3 | 21.3 | 21.1 | 4.50% | 5.06% | 12/23/2021 | Montreal - CAN | Office | 58 / sqft | 45% | 2 | |||||||||||||||||||||||||
97 | Senior loan | 5/28/2015 | 20.6 | 20.6 | 20.6 | L + 3.95 % | L + 4.97 % | 3/31/2019 | Pittsburgh | Hotel | 92,455 / key | 71% | 4 | |||||||||||||||||||||||||
98 | Senior loan | 6/4/2015 | 18.2 | 18.2 | 18.3 | 4.63% | 5.00% | 3/1/2019 | Ontario - CAN | Other | 53,616 / unit | 59% | 2 | |||||||||||||||||||||||||
99 | Senior loan | 6/11/2015 | 17.9 | 17.9 | 17.8 | 5.04 % | (6) | 5.61 % | (6) | 11/30/2020 | Ft. Lauderdale | MHC | 26,119 / unit | 51% | 2 | |||||||||||||||||||||||
100 | Senior loan | 6/4/2015 | 17.2 | 17.2 | 17.3 | 5.20% | 5.55% | 9/4/2020 | Diversified - CAN | Other | 3,757 / unit | 61% | 2 | |||||||||||||||||||||||||
101 | Senior loan | 5/8/2017 | 80.0 | 15.2 | 14.4 | L + 3.75 % | L + 4.86 % | 5/8/2022 | Washington DC | Office | 71 / sqft | 73% | 3 | |||||||||||||||||||||||||
102 | Senior loan | 6/11/2015 | 14.9 | 14.9 | 14.9 | 5.34 % | (6) | 5.87 % | (6) | 9/30/2020 | Tampa | MHC | 39,244 / unit | 64% | 2 | |||||||||||||||||||||||
103 | Senior loan | 6/4/2015 | 15.6 | 14.8 | 15.4 | L + 4.50 % | L + 4.69 % | 12/1/2017 | Toronto - CAN | Office | 89 / sqft | 58% | 2 | |||||||||||||||||||||||||
104 | Senior loan | 7/21/2017 | 13.6 | 13.6 | 13.6 | L + 4.50 % | L + 4.74 % | 10/1/2018 | Phoenix | Multi | 83,951 / unit | 68% | 2 | |||||||||||||||||||||||||
105 | Senior loan | 9/6/2017 | 13.3 | 13.3 | 13.2 | L + 4.25 % | L + 5.17 % | 4/1/2019 | Austin | Multi | 127,644 / unit | 57% | 3 | |||||||||||||||||||||||||
106 | Senior loan | 7/13/2017 | 13.1 | 13.1 | 13.1 | L + 4.50 % | L + 4.86 % | 2/1/2020 | Orlando | Multi | 60,648 / unit | 61% | 2 | |||||||||||||||||||||||||
107 | Senior loan | 5/28/2015 | 12.8 | 12.8 | 12.8 | L + 4.75 % | L + 5.01 % | 10/15/2017 | Diversified - US | Office | 48 / sqft | 86% | 2 | |||||||||||||||||||||||||
108 | Senior loan | 7/21/2017 | 10.7 | 10.7 | 10.7 | L + 4.50 % | L + 4.74 % | 8/1/2018 | Phoenix | Multi | 72,297 / unit | 61% | 3 | |||||||||||||||||||||||||
109 | Senior loan | 7/21/2017 | 7.3 | 7.3 | 7.3 | L + 5.00 % | L + 5.30 % | 7/1/2019 | Phoenix | Multi | 56,154 / unit | 66% | 3 | |||||||||||||||||||||||||
110 | Senior loan | 7/20/2017 | 193.2 | 0.0 | (1.9 | ) | L + 5.10 % | L + 6.17 % | 8/9/2022 | Oakland | Office | 0 / sqft | 58% | 3 | ||||||||||||||||||||||||
111 | Senior loan | 9/22/2017 | 91.0 | 0.0 | (0.9 | ) | L + 5.25 % | L + 5.98 % | 10/9/2022 | Oakland | Multi | 0 / unit | 47% | 3 | ||||||||||||||||||||||||
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$ | 12,342.0 | $10,668.7 | $ | 9,637.2 | 5.13% | 5.55% | 3.4 yrs | 61% | 2.6 | |||||||||||||||||||||||||||||
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Loan Type (1) | Origination Date (2) | Total Loan (3)(4) | Principal Balance (4) | Net Book Value | Cash Coupon (5) | All-in Yield (5) | Maximum Maturity (6) | Location | Property Type | Loan Per SQFT / Unit / Key | LTV (2) | Risk Rating | ||||||||||||||||||||||||||
31 | Senior loan | 11/23/2018 | 184.4 | 180.0 | 178.5 | L + 2.62% | L + 2.87% | 2/15/2024 | Diversified - UK | Office | $1,091 / sqft | 50% | 3 | |||||||||||||||||||||||||
32 | Senior loan | 4/3/2018 | 178.6 | 177.3 | 176.9 | L + 2.75% | L + 3.06% | 4/9/2024 | Dallas | Mixed-Use | $502 / sqft | 64% | 3 | |||||||||||||||||||||||||
33 | Senior loan | 9/26/2019 | 175.0 | 175.0 | 174.3 | L + 3.10% | L + 3.54% | 1/9/2023 | New York | Office | $256 / sqft | 65% | 3 | |||||||||||||||||||||||||
34 | Senior loan | 9/14/2018 | 174.1 | 174.1 | 173.3 | L + 3.50% | L + 3.85% | 9/14/2023 | Canberra - AU | Mixed-Use | $401 / sqft | 68% | 3 | |||||||||||||||||||||||||
35 | Senior loan | 12/21/2017 | 197.5 | 161.8 | 161.4 | L + 2.65% | L + 3.06% | 1/9/2023 | Atlanta | Office | $121 / sqft | 51% | 2 | |||||||||||||||||||||||||
36 | Senior loan | 9/4/2018 | 172.7 | 156.8 | 156.0 | L + 3.00% | L + 3.39% | 9/9/2023 | Las Vegas | Hospitality | $189,812 / key | 70% | 4 | |||||||||||||||||||||||||
37 | Senior loan | 8/23/2017 | 165.0 | 153.0 | 152.9 | L + 3.25% | L + 3.58% | 10/9/2022 | Los Angeles | Office | $311 / sqft | 74% | 2 | |||||||||||||||||||||||||
38 | Senior loan (4) | 11/22/2019 | 470.0 | 146.2 | 28.3 | L + 3.70% | L + 4.06% | 12/9/2025 | Los Angeles | Office | $146 / sqft | 69% | 3 | |||||||||||||||||||||||||
39 | Senior loan | 12/6/2019 | 142.6 | 142.6 | 141.5 | L + 2.80% | L + 3.31% | 12/5/2024 | London - UK | Office | $944 / sqft | 75% | 3 | |||||||||||||||||||||||||
40 | Senior loan | 12/20/2019 | 139.3 | 139.3 | 138.1 | L + 3.10% | L + 3.32% | 12/18/2026 | London - UK | Office | $693 / sqft | 75% | 3 | |||||||||||||||||||||||||
41 | Senior loan | 11/16/2018 | 211.9 | 137.9 | 136.3 | L + 4.10% | L + 4.69% | 12/9/2023 | Fort Lauderdale | Mixed-Use | $388 / sqft | 59% | 3 | |||||||||||||||||||||||||
42 | Senior loan | 5/11/2017 | 135.9 | 135.4 | 135.1 | L + 3.40% | L + 3.64% | 6/10/2023 | Washington DC | Office | $311 / sqft | 38% | 2 | |||||||||||||||||||||||||
43 | Senior loan | 11/14/2017 | 133.0 | 133.0 | 132.8 | L + 2.75% | L + 3.00% | 6/9/2023 | Los Angeles | Hospitality | $532,000 / key | 56% | 3 | |||||||||||||||||||||||||
44 | Senior loan | 1/17/2020 | 203.0 | 131.8 | 130.4 | L + 2.75% | L + 3.07% | 2/9/2025 | New York | Mixed-Use | $109 / sqft | 43% | 3 | |||||||||||||||||||||||||
45 | Senior loan | 9/5/2019 | 198.4 | 130.0 | 128.3 | L + 2.75% | L + 3.24% | 9/9/2024 | New York | Office | $811 / sqft | 62% | 3 | |||||||||||||||||||||||||
46 | Senior loan | 12/14/2018 | 135.6 | 123.6 | 123.3 | L + 2.90% | L + 3.27% | 1/9/2024 | Diversified - US | Industrial | $49 / sqft | 57% | 3 | |||||||||||||||||||||||||
47 | Senior loan | 11/27/2019 | 146.3 | 122.6 | 121.3 | L + 2.75% | L + 3.13% | 12/9/2024 | Minneapolis | Office | $123 / sqft | 64% | 3 | |||||||||||||||||||||||||
48 | Senior loan | 6/1/2018 | 125.3 | 117.9 | 117.2 | L + 3.40% | L + 3.74% | 5/28/2023 | London - UK | Office | $800 / sqft | 70% | 1 | |||||||||||||||||||||||||
49 | Senior loan | 6/28/2019 | 125.0 | 117.2 | 116.7 | L + 2.75% | L + 2.91% | 2/1/2024 | Los Angeles | Office | $591 / sqft | 48% | 3 | |||||||||||||||||||||||||
50 | Senior loan | 3/10/2020 | 140.0 | 115.9 | 115.6 | L + 2.50% | L + 2.67% | 1/9/2025 | New York | Mixed-Use | $75 / sqft | 53% | 3 | |||||||||||||||||||||||||
51 | Senior loan | 4/25/2019 | 210.0 | 113.6 | 112.8 | L + 3.50% | L + 3.75% | 9/1/2025 | Los Angeles | Office | $511 / sqft | 73% | 3 | |||||||||||||||||||||||||
52 | Senior loan | 7/15/2019 | 144.6 | 113.5 | 112.5 | L + 2.90% | L + 3.25% | 8/9/2024 | Houston | Office | $205 / sqft | 58% | 3 | |||||||||||||||||||||||||
53 | Senior loan | 4/30/2018 | 158.9 | 112.6 | 111.6 | L + 3.25% | L + 3.51% | 4/30/2023 | London - UK | Office | $507 / sqft | 60% | 3 | |||||||||||||||||||||||||
54 | Senior loan | 6/28/2019 | 181.0 | 112.0 | 110.2 | L + 3.70% | L + 4.33% | 6/27/2024 | London - UK | Office | $365 / sqft | 71% | 3 | |||||||||||||||||||||||||
55 | Senior loan | 12/21/2018 | 123.1 | 106.3 | 105.6 | L + 2.60% | L + 3.00% | 1/9/2024 | Chicago | Office | $208 / key | 72% | 2 | |||||||||||||||||||||||||
56 | Senior loan | 10/16/2018 | 113.7 | 104.8 | 104.3 | L + 3.25% | L + 3.57% | 11/9/2023 | San Francisco | Hospitality | $228,253 / key | 72% | 4 | |||||||||||||||||||||||||
57 | Senior loan | 10/17/2016 | 103.9 | 103.9 | 103.9 | L + 3.95% | L + 3.96% | 10/21/2021 | Diversified - UK | Self-Storage | $143 / sqft | 73% | 3 | |||||||||||||||||||||||||
58 | Senior loan | 3/13/2018 | 123.0 | 103.6 | 103.0 | L + 3.00% | L + 3.27% | 4/9/2025 | Honolulu | Hospitality | $160,580 / key | 50% | 3 | |||||||||||||||||||||||||
59 | Senior loan | 12/19/2018 | 106.7 | 103.0 | 102.9 | L + 2.60% | L + 2.94% | 12/9/2022 | Chicago | Multi | $556,723 / unit | 66% | 2 | |||||||||||||||||||||||||
60 | Senior loan | 5/16/2014 | 100.0 | 100.0 | 100.0 | L + 3.85% | L + 4.11% | 4/9/2022 | Miami | Office | $215 / sqft | 67% | 3 |
Loan Type (1) | Origination Date (2) | Total Loan (3)(4) | Principal Balance (4) | Net Book Value | Cash Coupon (5) | All-in Yield (5) | Maximum Maturity (6) | Location | Property Type | Loan Per SQFT / Unit / Key | LTV (2) | Risk Rating | ||||||||||||||||||||||||||
61 | Senior loan | 3/25/2020 | 119.7 | 97.7 | 96.6 | L + 2.40% | L + 2.78% | 3/31/2025 | Diversified - NL | Multi | $119,330 / unit | 65% | 3 | |||||||||||||||||||||||||
62 | Senior loan | 11/30/2018 | 151.1 | 97.5 | 96.7 | L + 2.55% | L + 2.80% | 12/9/2024 | Washington DC | Office | $305 / sqft | 60% | 3 | |||||||||||||||||||||||||
63 | Senior loan | 12/23/2019 | 109.7 | 93.9 | 93.1 | L + 2.70% | L + 3.03% | 1/9/2025 | Miami | Multi | $324,861 / unit | 68% | 3 | |||||||||||||||||||||||||
64 | Senior loan | 4/12/2018 | 103.1 | 91.8 | 91.5 | L + 2.75% | L + 3.06% | 5/9/2023 | San Francisco | Office | $239 / sqft | 72% | 2 | |||||||||||||||||||||||||
65 | Senior loan | 3/28/2019 | 98.4 | 91.6 | 91.4 | L + 3.25% | L + 3.40% | 1/9/2024 | New York | Hospitality | $236,638 / key | 63% | 4 | |||||||||||||||||||||||||
66 | Senior loan (4) | 9/22/2017 | 91.0 | 90.2 | 22.4 | L + 5.25% | L + 6.69% | 10/9/2022 | San Francisco | Multi | $446,078 / unit | 46% | 3 | |||||||||||||||||||||||||
67 | Senior loan | 12/10/2018 | 110.1 | 87.7 | 86.7 | L + 2.95% | L + 3.34% | 12/3/2024 | London - UK | Office | $419 / sqft | 72% | 3 | |||||||||||||||||||||||||
68 | Senior loan | 2/18/2015 | 87.7 | 87.7 | 87.7 | L + 3.75% | L + 4.00% | 10/9/2020 | Diversified - CA | Office | $181 / sqft | 71% | 3 | |||||||||||||||||||||||||
69 | Senior loan | 8/18/2017 | 87.3 | 87.3 | 87.2 | L + 4.10% | L + 4.80% | 8/18/2022 | Brussels - BE | Office | $136 / sqft | 59% | 2 | |||||||||||||||||||||||||
70 | Senior loan | 3/31/2017 | 96.9 | 87.0 | 87.1 | L + 4.30% | L + 4.67% | 4/9/2022 | New York | Office | $427 / sqft | 64% | 3 | |||||||||||||||||||||||||
71 | Senior loan | 11/22/2019 | 85.0 | 85.0 | 84.7 | L + 2.99% | L + 3.27% | 12/1/2024 | San Jose | Multi | $317,164 / unit | 62% | 3 | |||||||||||||||||||||||||
72 | Senior loan | 6/29/2016 | 83.4 | 80.0 | 79.9 | L + 2.80% | L + 3.28% | 7/9/2021 | Miami | Office | $308 / sqft | 64% | 2 | |||||||||||||||||||||||||
73 | Senior loan | 6/18/2019 | 75.0 | 75.0 | 74.4 | L + 3.15% | L + 3.15% | 7/9/2024 | Napa Valley | Hospitality | $785,340 / key | 74% | 4 | |||||||||||||||||||||||||
74 | Senior loan | 2/20/2019 | 125.9 | 72.8 | 71.5 | L + 3.25% | L + 3.89% | 2/19/2024 | London - UK | Office | $357 / sqft | 61% | 3 | |||||||||||||||||||||||||
75 | Senior loan | 10/17/2018 | 80.4 | 72.2 | 72.1 | L + 2.60% | L + 3.03% | 11/9/2023 | San Francisco | Office | $450 / sqft | 68% | 3 | |||||||||||||||||||||||||
76 | Senior loan | 6/27/2019 | 84.0 | 71.5 | 71.2 | L + 2.50% | L + 2.77% | 7/9/2024 | West Palm Beach | Office | $245 / sqft | 70% | 3 | |||||||||||||||||||||||||
77 | Senior loan | 7/26/2018 | 84.1 | 71.1 | 71.1 | L + 2.75% | L + 2.85% | 7/1/2024 | Columbus | Multi | $66,984 / unit | 69% | 3 | |||||||||||||||||||||||||
78 | Senior loan | 3/21/2018 | 74.3 | 69.4 | 69.1 | L + 3.10% | L + 3.33% | 3/21/2024 | Jacksonville | Office | $91 / sqft | 72% | 2 | |||||||||||||||||||||||||
79 | Senior loan | 1/30/2020 | 104.4 | 66.7 | 65.9 | L + 2.85% | L + 3.22% | 2/9/2026 | Honolulu | Hospitality | $214,341 / key | 63% | 4 | |||||||||||||||||||||||||
80 | Senior loan | 4/5/2018 | 85.3 | 65.9 | 65.7 | L + 3.10% | L + 3.51% | 4/9/2023 | Diversified - US | Industrial | $24 / sqft | 54% | 3 | |||||||||||||||||||||||||
81 | Senior loan | 8/22/2019 | 74.3 | 65.0 | 64.5 | L + 2.55% | L + 2.93% | 9/9/2024 | Los Angeles | Office | $389 / sqft | 63% | 3 | |||||||||||||||||||||||||
82 | Senior loan | 6/29/2017 | 64.2 | 63.4 | 63.2 | L + 3.40% | L + 3.65% | 7/9/2023 | New York | Multi | $184,768 / unit | 69% | 4 | |||||||||||||||||||||||||
83 | Senior loan | 10/5/2018 | 59.4 | 59.4 | 59.1 | L + 5.50% | L + 5.65% | 10/5/2021 | Sydney - AU | Office | $630 / sqft | 78% | 3 | |||||||||||||||||||||||||
84 | Senior loan | 11/30/2016 | 65.2 | 56.7 | 56.6 | L + 3.10% | L + 3.32% | 12/9/2021 | Chicago | Retail | $1,167 / sqft | 54% | 4 | |||||||||||||||||||||||||
85 | Senior loan | 10/6/2017 | 55.9 | 55.8 | 55.7 | L + 2.95% | L + 3.21% | 10/9/2022 | Nashville | Multi | $99,598 / unit | 74% | 2 | |||||||||||||||||||||||||
86 | Senior loan | 8/16/2019 | 54.3 | 54.3 | 54.2 | L + 2.75% | L + 2.95% | 9/1/2022 | Sarasota | Multi | $238,158 / unit | 76% | 3 | |||||||||||||||||||||||||
87 | Senior loan | 11/23/2016 | 53.6 | 53.6 | 53.5 | L + 3.50% | L + 3.80% | 12/9/2022 | New York | Multi | $223,254 / unit | 65% | 4 | |||||||||||||||||||||||||
88 | Senior loan | 10/31/2018 | 63.3 | 52.8 | 52.6 | L + 5.00% | L + 5.67% | 11/9/2023 | New York | Multi | $274,265 / unit | 61% | 3 | |||||||||||||||||||||||||
89 | Senior loan | 3/11/2014 | 52.8 | 52.8 | 52.8 | L + 1.84% | L + 1.85% | 11/9/2020 | New York | Multi | $593,109 / unit | 65% | 5 | |||||||||||||||||||||||||
90 | Senior loan | 6/26/2019 | 66.0 | 51.8 | 51.3 | L + 3.35% | L + 3.66% | 6/20/2024 | London - UK | Office | $585 / sqft | 61% | 3 |
Loan Type (1) | Origination Date (2) | Total Loan (3)(4) | Principal Balance (4) | Net Book Value | Cash Coupon (5) | All-in Yield (5) | Maximum Maturity (6) | Location | Property Type | Loan Per SQFT / Unit / Key | LTV (2) | Risk Rating | ||||||||||||||||||||||||||
91 | Senior loan | 8/14/2019 | 70.3 | 51.5 | 50.9 | L + 2.45% | L + 2.87% | 9/9/2024 | Los Angeles | Office | $590 / sqft | 57% | 3 | |||||||||||||||||||||||||
92 | Senior loan | 6/12/2019 | 55.0 | 48.3 | 48.2 | L + 3.25% | L + 3.37% | 7/1/2022 | Grand Rapids | Multi | $92,529 / unit | 69% | 3 | |||||||||||||||||||||||||
93 | Senior loan | 5/24/2018 | 81.3 | 46.0 | 45.6 | L + 4.10% | L + 4.59% | 6/9/2023 | Boston | Office | $89 / sqft | 55% | 2 | |||||||||||||||||||||||||
94 | Senior loan | 10/31/2018 | 53.4 | 45.3 | 45.3 | L + 5.00% | L + 6.15% | 11/9/2023 | New York | Condo | $420 / sqft | 64% | 3 | |||||||||||||||||||||||||
95 | Senior loan | 9/25/2018 | 49.3 | 45.0 | 44.8 | L + 3.50% | L + 3.79% | 9/1/2023 | Chicago | Multi | $61,202 / unit | 70% | 3 | |||||||||||||||||||||||||
96 | Senior loan | 11/3/2017 | 45.0 | 44.0 | 44.0 | L + 3.00% | L + 3.08% | 11/1/2022 | Los Angeles | Office | $205 / sqft | 50% | 1 | |||||||||||||||||||||||||
97 | Senior loan | 2/21/2020 | 43.8 | 43.8 | 43.6 | L + 3.25% | L + 3.58% | 3/1/2025 | Atlanta | Multi | $137,304 / unit | 68% | 3 | |||||||||||||||||||||||||
98 | Senior loan | 8/29/2017 | 51.2 | 43.5 | 43.5 | L + 3.10% | L + 3.52% | 10/9/2022 | Southern California | Industrial | $91 / sqft | 65% | 3 | |||||||||||||||||||||||||
99 | Senior loan | 6/26/2015 | 41.6 | 41.0 | 41.0 | L + 3.75% | L + 3.94% | 7/9/2020 | San Diego | Office | $187 / sqft | 73% | 3 | |||||||||||||||||||||||||
100 | Senior loan | 2/20/2019 | 49.4 | 39.7 | 39.4 | L + 3.50% | L + 3.91% | 3/9/2024 | Calgary - CAN | Office | $109 / sqft | 52% | 3 | |||||||||||||||||||||||||
101 | Senior loan | 12/27/2016 | 39.5 | 39.5 | 39.4 | L + 3.10% | L + 3.45% | 1/9/2022 | New York | Multi | $784,286 / unit | 64% | 3 | |||||||||||||||||||||||||
102 | Senior loan | 12/13/2019 | 35.9 | 33.0 | 32.2 | L + 3.55% | L + 4.49% | 6/12/2024 | Diversified - FR | Industrial | $23 / sqft | 55% | 3 | |||||||||||||||||||||||||
103 | Senior loan | 10/31/2019 | 33.9 | 33.0 | 32.9 | L + 3.25% | L + 3.34% | 11/1/2024 | Raleigh | Multi | $162,626 / unit | 52% | 3 | |||||||||||||||||||||||||
104 | Senior loan | 10/31/2019 | 31.5 | 31.3 | 31.3 | L + 3.25% | L + 3.33% | 11/1/2024 | Atlanta | Multi | $164,816 / unit | 60% | 3 | |||||||||||||||||||||||||
105 | Senior loan | 8/14/2019 | 31.0 | 31.0 | 31.0 | L + 5.00% | L + 6.02% | 8/14/2020 | Orangeburg | Other | $150 / sqft | 36% | 3 | |||||||||||||||||||||||||
106 | Senior loan | 10/31/2019 | 30.2 | 29.6 | 29.5 | L + 3.25% | L + 3.33% | 11/1/2024 | Austin | Multi | $156,642 / unit | 52% | 3 | |||||||||||||||||||||||||
107 | Senior loan | 6/26/2019 | 28.0 | 28.0 | 28.0 | L + 3.25% | L + 3.90% | 10/1/2020 | Lake Charles | Multi | $104,478 / unit | 73% | 2 | |||||||||||||||||||||||||
108 | Senior loan | 10/31/2019 | 27.2 | 27.2 | 27.1 | L + 3.25% | L + 3.32% | 11/1/2024 | Austin | Multi | $135,084 / unit | 53% | 3 | |||||||||||||||||||||||||
109 | Senior loan | 5/31/2019 | 24.4 | 24.4 | 24.4 | L + 4.00% | L + 4.20% | 6/1/2022 | Denver | Multi | $162,720 / unit | 59% | 2 | |||||||||||||||||||||||||
110 | Senior loan | 12/15/2017 | 22.5 | 22.5 | 22.5 | L + 3.50% | L + 3.50% | 12/9/2020 | Diversified - US | Hospitality | $340,809 / key | 50% | 3 | |||||||||||||||||||||||||
111 | Senior loan | 3/24/2020 | 22.0 | 22.0 | 22.0 | L + 3.25% | L + 3.26% | 10/1/2021 | San Jose | Multi | $400,000 / unit | 58% | 3 | |||||||||||||||||||||||||
112 | Senior loan | 12/23/2019 | 26.2 | 20.5 | 20.3 | L + 2.85% | L + 3.21% | 1/9/2025 | Miami | Office | $344 / sqft | 68% | 3 | |||||||||||||||||||||||||
113 | Senior loan | 2/26/2020 | 20.4 | 20.4 | 20.4 | L + 2.80% | L + 3.27% | 3/1/2021 | Atlanta | Multi | $85,356 / unit | 36% | 1 | |||||||||||||||||||||||||
114 | Senior loan | 6/15/2018 | 22.0 | 20.4 | 20.5 | L + 3.35% | L + 3.79% | 7/1/2022 | Phoenix | Multi | $71,430 / unit | 78% | 3 | |||||||||||||||||||||||||
115 | Senior loan | 3/8/2017 | 20.1 | 20.1 | 20.1 | 4.79% (7) | 5.12% (7) | 12/23/2021 | Montreal - CAN | Office | $55 / sqft | 45% | 2 | |||||||||||||||||||||||||
116 | Senior loan | 4/26/2019 | 20.0 | 20.0 | 19.9 | L + 2.93% | L + 3.38% | 5/1/2024 | Nashville | Multi | $198,020 / unit | 73% | 2 | |||||||||||||||||||||||||
117 | Senior loan | 12/21/2018 | 22.9 | 20.0 | 19.9 | L + 3.25% | L + 3.48% | 1/1/2024 | Daytona Beach | Multi | $74,627 / unit | 77% | 3 | |||||||||||||||||||||||||
118 | Senior loan | 3/30/2016 | 15.8 | 15.8 | 16.0 | 5.15% | 5.27% | 9/4/2020 | Diversified - CAN | Self-Storage | $3,451 / unit | 56% | 1 | |||||||||||||||||||||||||
119 | Senior loan | 10/20/2017 | 17.2 | 15.1 | 15.0 | L + 4.25% | L + 4.35% | 11/1/2021 | Houston | Multi | $119,444 / unit | 56% | 2 | |||||||||||||||||||||||||
120 | Senior loan | 6/21/2019 | 14.8 | 14.5 | 14.4 | L + 3.30% | L + 3.41% | 7/1/2022 | Portland | Multi | $130,180 / unit | 66% | 2 |
Loan Type (1) | Origination Date (2) | Total Loan (3)(4) | Principal Balance (4) | Net Book Value | Cash Coupon (5) | All-in Yield (5) | Maximum Maturity (6) | Location | Property Type | Loan Per SQFT / Unit / Key | LTV (2) | Risk Rating | ||||||||||||||||||||||||||
121 | Senior loan | 4/30/2019 | 15.5 | 14.4 | 14.3 | L + 3.00% | L + 3.32% | 5/1/2024 | Houston | Multi | $46,543 / unit | 78% | 3 | |||||||||||||||||||||||||
122 | Senior loan | 5/22/2014 | 14.0 | 14.0 | 14.0 | L + 2.90% | L + 3.15% | 6/15/2021 | Orange County | Office | $25 / sqft | 74% | 2 | |||||||||||||||||||||||||
123 | Senior loan | 2/28/2019 | 15.3 | 13.9 | 13.9 | L + 3.00% | L + 3.29% | 3/1/2024 | San Antonio | Multi | $60,621 / unit | 75% | 3 | |||||||||||||||||||||||||
124 | Senior loan | 10/1/2019 | 341.7 | 12.8 | 9.2 | L + 3.75% | L + 4.25% | 10/9/2025 | Atlanta | Mixed-Use | $505 / sqft | 70% | 3 | |||||||||||||||||||||||||
125 | Senior loan | 5/30/2018 | 10.1 | 10.1 | 10.1 | L + 4.15% | L + 4.41% | 6/1/2021 | Phoenix | Multi | $112,222 / unit | 74% | 2 | |||||||||||||||||||||||||
126 | Senior loan | 9/1/2016 | 6.1 | 6.1 | 6.2 | L + 4.20% | L + 4.39% | 9/1/2022 | Atlanta | Multi | $56,544 / unit | 72% | 1 | |||||||||||||||||||||||||
127 | Senior loan | 11/30/2018 | 3.5 | 3.5 | 3.6 | L + 2.95% | L + 4.20% | 10/1/2023 | Las Vegas | Multi | $7,289 / unit | 70% | 2 | |||||||||||||||||||||||||
128 | Senior loan (4) | 3/23/2020 | 348.6 | 0.0 | (1.1 | ) | L + 3.75% | L + 4.38% | 1/9/2025 | Nashville | Mixed-Use | $348 / sqft | 78% | 3 | ||||||||||||||||||||||||
CECL reserve | (178.1 | ) | ||||||||||||||||||||||||||||||||||||
Loans receivable, net | $ | 21,717.3 | $ | 17,174.2 | $ | 16,161.4 | L + 3.23% | L + 3.58% | 3.5 yrs | 65% | 3.0 | |||||||||||||||||||||||||||
(1) | Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
(2) | Date loan was originated or acquired by us, and the LTV as of such date. |
(3) | Total loan amount reflects outstanding principal balance as well as any related unfunded loan commitment. |
(4) | In certain instances, we finance our loans through thenon-recourse sale of a senior loan interest that is not included in our consolidated financial statements. As of |
The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of |
Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date. |
Loan consists of one or more floating and fixed rate tranches. Coupon andall-in yield assume applicable floating benchmark rates for weighted-average calculation. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Loan
Currency | Assets (Liabilities) Subject to Interest Rate Sensitivity(1)(2) | 25 Basis Point Increase | 25 Basis Point Decrease | 50 Basis Point Increase | 50 Basis Point Decrease | |||||||||||||||||||
USD | $ | 8,923,957 | Interest income | $ | 22,299 | $ | (21,505 | ) | $ | 44,608 | $ | (41,195 | ) | |||||||||||
(6,503,552 | ) | Interest expense | (16,259 | ) | 16,227 | (32,518 | ) | 31,299 | ||||||||||||||||
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$ | 2,420,405 | Total | $ | 6,040 | $ | (5,278 | ) | $ | 12,090 | $ | (9,896 | ) | ||||||||||||
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GBP | $ | 410,791 | Interest income | $ | 1,027 | $ | (1,027 | ) | $ | 2,054 | $ | (1,636 | ) | |||||||||||
(231,187 | ) | Interest expense | (578 | ) | 578 | (1,156 | ) | 1,156 | ||||||||||||||||
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| |||||||||||||||
$ | 179,604 | Total | $ | 449 | $ | (449 | ) | $ | 898 | $ | (480 | ) | ||||||||||||
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EUR | $ | 129,637 | Interest income | $ | — | $ | — | $ | 222 | $ | — | |||||||||||||
(78,192 | ) | Interest expense | (195 | ) | 195 | (391 | ) | 391 | ||||||||||||||||
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| |||||||||||||||
$ | 51,445 | Total | $ | (195 | ) | $ | 195 | $ | (169 | ) | $ | 391 | ||||||||||||
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CAD(3) | $ | 328,853 | Interest income | $ | 822 | $ | (822 | ) | $ | 1,644 | $ | (1,644 | ) | |||||||||||
(287,769 | ) | Interest expense | (719 | ) | 719 | (1,439 | ) | 1,439 | ||||||||||||||||
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| |||||||||||||||
$ | 41,084 | Total | $ | 103 | $ | (103 | ) | $ | 205 | $ | (205 | ) | ||||||||||||
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Total | $ | 6,397 | $ | (5,635 | ) | $ | 13,024 | $ | (10,190 | ) | ||||||||||||||
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Assets (Liabilities) Sensitive to Changes in Interest Rates (1)(2)(3) | Interest Rate Sensitivity as of June 30, 2020 | |||||||||||||||||||||||
Increase in Rates | Decrease in Rates (4) | |||||||||||||||||||||||
Currency | 25 Basis Points | 50 Basis Points | 25 Basis Points | 50 Basis Points | ||||||||||||||||||||
USD | $ | 12,520,462 | Income | $ | 7,510 | $ | 15,440 | $ | (4,652 | ) | $ | (4,652 | ) | |||||||||||
(10,440,646 | ) | Expense | (17,202 | ) | (34,851 | ) | 11,164 | 11,164 | ||||||||||||||||
$ | 2,079,816 | Net interest | $ | (9,692 | ) | $ | (19,411 | ) | $ | 6,512 | $ | 6,512 | ||||||||||||
EUR | $ | 3,142,835 | Income | $ | — | $ | 1,350 | $ | — | $ | — | |||||||||||||
(2,494,978 | ) | Expense | — | (1,068 | ) | — | — | |||||||||||||||||
$ | 647,857 | Net interest | $ | — | $ | 282 | $ | — | $ | — | ||||||||||||||
GBP | $ | 1,600,788 | Income | $ | 1,853 | $ | 4,028 | $ | (908 | ) | $ | (908 | ) | |||||||||||
(1,014,982 | ) | Expense | (2,030 | ) | (4,060 | ) | 1,144 | 1,144 | ||||||||||||||||
$ | 585,806 | Net interest | $ | (177 | ) | $ | (32 | ) | $ | 236 | $ | 236 | ||||||||||||
AUD | $ | 233,425 | Income | $ | — | $ | — | $ | — | $ | — | |||||||||||||
(169,299 | ) | Expense | (339 | ) | (677 | ) | 202 | 202 | ||||||||||||||||
$ | 64,126 | Net interest | $ | (339 | ) | $ | (677 | ) | $ | 202 | $ | 202 | ||||||||||||
CAD (5) | $ | 41,188 | Income | $ | 3 | $ | 6 | $ | (3 | ) | $ | (6 | ) | |||||||||||
(45,384 | ) | Expense | (91 | ) | (182 | ) | 91 | 182 | ||||||||||||||||
$ | (4,196 | ) | Net interest | $ | (88 | ) | $ | (176 | ) | $ | 88 | $ | 176 | |||||||||||
Total net interest | $ | (10,296 | ) | $ | (20,014 | ) | $ | 7,038 | $ | 7,126 | ||||||||||||||
(1) | Our floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. Increases (decreases) in interest income and expense are presented net of incentive fees. In addition, $13.0 billion of our loans earned interest based on floors that are above the applicable index as of June 30, 2020. Refer to Note 11 to our consolidated financial statements for additional details of our incentive fee calculation. |
(2) | Includes |
(3) | Includes amounts outstanding under secured debt agreements, |
Decrease in rates assumes the applicable benchmark rate for each currency does not decrease below 0%. |
(5) | Liabilities balance includes |
LoanSeptemberJune 30, 2017, 8%2020, 3% of our loansinvestments by total loaninvestment exposure earned a fixed rate of interest and as such, the values of such loans are sensitive to changes in interest rates. We generally hold all of our loansinvestments to maturity and so do not expect to realize gains or losses on our fixed rate loaninvestment portfolio as a result of movements in market interest rates.
In certain circumstances, we may also enter into foreign currency derivative contracts to further mitigate this exposure.
September 30, 2017 | ||||||||||||
Foreign currency assets(1) | £ | 683,745 | € | 145,958 | C$ | 583,528 | ||||||
Foreign currency liabilities(1) | (475,609 | ) | (66,290 | ) | (467,788 | ) | ||||||
Foreign currency contracts - notional | (112,700 | ) | — | (102,000 | ) | |||||||
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Net exposure to exchange rate fluctuations | £ | 95,436 | € | 79,668 | C$ | 13,740 | ||||||
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June 30, 2020 | ||||||||||||||||
Foreign currency assets (1) | € | 2,849,505 | £ | 1,654,698 | A$ | 344,002 | C$ | 108,478 | ||||||||
Foreign currency liabilities (1) | (2,220,577 | ) | (1,123,093 | ) | (245,982 | ) | (78,943 | ) | ||||||||
Foreign currency contracts - notional | (620,400 | ) | (530,200 | ) | (92,800 | ) | (24,400 | ) | ||||||||
Net exposure to exchange rate fluctuations | € | 8,528 | £ | 1,405 | A$ | 5,220 | C$ | 5,135 | ||||||||
____________ |
(1) | Balances include non-consolidated senior interests of £302.0 |
We estimate that a 10% appreciation of the United States Dollar relative to the British Pound Sterling and the Euro would result in a decline in our net assets in U.S. Dollar terms of $27.9 million and $9.4 million, respectively, as of September 30, 2017.
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
None.
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
3.1 | ||||
10.1 | ||||
10.2 | ||||
10.3 | ||||
10.4 | ||||
10.5 | ||||
10.6 | ||||
31.1 | ||||
31.2 | ||||
32.1 + | ||||
32.2 + | ||||
101.INS | Inline XBRL Instance | |||
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||
+ | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act, |
October 24, 2017 October 24, 2017
59