☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Maryland | 27-0467113 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
Common Stock, $0.01 par value | ARI | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||||||
Emerging growth company | ☐ |
Page | |||||
September 30, 2020 | December 31, 2019 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 438,234 | $ | 452,282 | |||||||
Commercial mortgage loans, net(1)(2) | 5,427,945 | 5,326,967 | |||||||||
Subordinate loans and other lending assets, net(2) | 1,009,092 | 1,048,126 | |||||||||
Derivative assets, net | 13,654 | 0 | |||||||||
Other assets | 43,644 | 52,716 | |||||||||
Loan proceeds held by servicer | 0 | 8,272 | |||||||||
Total Assets | $ | 6,932,569 | $ | 6,888,363 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Secured debt arrangements, net (net of deferred financing costs of $12,746 and $17,190 in 2020 and 2019, respectively) | $ | 3,465,337 | $ | 3,078,366 | |||||||
Convertible senior notes, net | 564,611 | 561,573 | |||||||||
Senior secured term loan, net (net of deferred financing costs of $7,565 and $7,277 in 2020 and 2019, respectively) | 484,191 | 487,961 | |||||||||
Accounts payable, accrued expenses and other liabilities(3) | 89,222 | 100,712 | |||||||||
Payable to related party | 9,927 | 10,430 | |||||||||
Derivative liabilities | 0 | 19,346 | |||||||||
Total Liabilities | 4,613,288 | 4,258,388 | |||||||||
Commitments and Contingencies (see Note 15) | |||||||||||
Stockholders’ Equity: | |||||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, Series B, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) | 68 | 68 | |||||||||
Common stock, $0.01 par value, 450,000,000 shares authorized, 143,288,347 and 153,537,296 shares issued and outstanding in 2020 and 2019, respectively | 1,433 | 1,535 | |||||||||
Additional paid-in-capital | 2,739,851 | 2,825,317 | |||||||||
Accumulated deficit | (422,071) | (196,945) | |||||||||
Total Stockholders’ Equity | 2,319,281 | 2,629,975 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 6,932,569 | $ | 6,888,363 |
September 30, 2019 | December 31, 2018 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 160,934 | $ | 109,806 | |||
Commercial mortgage loans, net (includes $4,118,926 and $3,197,900 pledged as collateral under secured debt arrangements in 2019 and 2018, respectively) | 4,779,501 | 3,878,981 | |||||
Subordinate loans and other lending assets, net | 1,335,073 | 1,048,612 | |||||
Other assets | 37,858 | 33,720 | |||||
Derivative assets, net | 35,729 | 23,700 | |||||
Loan proceeds held by servicer | 3,323 | 1,000 | |||||
Total Assets | $ | 6,352,418 | $ | 5,095,819 | |||
Liabilities and Stockholders' Equity | |||||||
Liabilities: | |||||||
Secured debt arrangements, net (net of deferred financing costs of $18,031 and $17,555 in 2019 and 2018, respectively) | $ | 2,541,287 | $ | 1,879,522 | |||
Convertible senior notes, net | 560,589 | 592,000 | |||||
Senior secured term loan, net (net of deferred financing costs of $7,452 and $0 in 2019 and 2018, respectively) | 488,947 | — | |||||
Accounts payable, accrued expenses and other liabilities | 98,231 | 104,746 | |||||
Derivative liabilities | 23,420 | — | |||||
Payable to related party | 10,434 | 9,804 | |||||
Total Liabilities | 3,722,908 | 2,586,072 | |||||
Commitments and Contingencies (see Note 15) | |||||||
Stockholders’ Equity: | |||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized: | |||||||
Series B preferred stock, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) | 68 | 68 | |||||
Series C preferred stock, 0 and 6,900,000 issued and outstanding ($0 and $172,500 liquidation preference in 2019 and 2018), respectively | — | 69 | |||||
Common stock, $0.01 par value, 450,000,000 shares authorized, 153,531,756 and 133,853,565 shares issued and outstanding in 2019 and 2018, respectively | 1,535 | 1,339 | |||||
Additional paid-in-capital | 2,821,419 | 2,638,441 | |||||
Accumulated deficit | (193,512 | ) | (130,170 | ) | |||
Total Stockholders’ Equity | 2,629,510 | 2,509,747 | |||||
Total Liabilities and Stockholders’ Equity | $ | 6,352,418 | $ | 5,095,819 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net interest income: | |||||||||||||||||||||||||||||||||||
Interest income from commercial mortgage loans | $ | 74,522 | $ | 81,136 | $ | 232,018 | $ | 236,880 | |||||||||||||||||||||||||||
Interest income from subordinate loans and other lending assets | 28,857 | 43,421 | 95,491 | 125,303 | |||||||||||||||||||||||||||||||
Interest expense | (34,824) | (39,341) | (113,527) | (109,147) | |||||||||||||||||||||||||||||||
Net interest income | 68,555 | 85,216 | 213,982 | 253,036 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
General and administrative expenses (includes equity-based compensation of $4,212 and $12,727 in 2020 and $3,889 and $12,084 in 2019, respectively) | (6,624) | (5,839) | (19,580) | (18,564) | |||||||||||||||||||||||||||||||
Management fees to related party | (9,927) | (10,434) | (30,152) | (30,306) | |||||||||||||||||||||||||||||||
Total operating expenses | (16,551) | (16,273) | (49,732) | (48,870) | |||||||||||||||||||||||||||||||
Other income | 128 | 429 | 1,479 | 1,431 | |||||||||||||||||||||||||||||||
Realized loss on investments | (1,037) | 0 | (17,442) | (12,513) | |||||||||||||||||||||||||||||||
Reversal of (provision for) loan losses(1) | 6,342 | (35,000) | (151,954) | (20,000) | |||||||||||||||||||||||||||||||
Foreign currency translation gain (loss) | 27,002 | (19,129) | (8,388) | (20,012) | |||||||||||||||||||||||||||||||
Gain (loss) on foreign currency forward contracts (includes unrealized gains (losses) of $(35,076) and $18,356 in 2020 and $16,227 and $12,029 in 2019, respectively) | (34,537) | 24,153 | 32,959 | 28,619 | |||||||||||||||||||||||||||||||
Loss on interest rate hedging instruments (includes unrealized gains (losses) of $(564) and $14,644 in 2020 and $(10,307) and $(23,420) in 2019, respectively) | (564) | (10,307) | (39,207) | (23,420) | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 49,338 | $ | 29,089 | $ | (18,303) | $ | 158,271 | |||||||||||||||||||||||||||
Preferred dividends | (3,385) | (3,385) | (10,155) | (15,139) | |||||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 45,953 | $ | 25,704 | $ | (28,458) | $ | 143,132 | |||||||||||||||||||||||||||
Net income (loss) per share of common stock: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.16 | $ | (0.20) | $ | 0.97 | |||||||||||||||||||||||||||
Diluted | $ | 0.31 | $ | 0.16 | $ | (0.20) | $ | 0.97 | |||||||||||||||||||||||||||
Basic weighted-average shares of common stock outstanding | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | |||||||||||||||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | |||||||||||||||||||||||||||||||
Dividend declared per share of common stock | $ | 0.35 | $ | 0.46 | $ | 1.10 | $ | 1.38 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net interest income: | ||||||||||||||||
Interest income from commercial mortgage loans | $ | 81,136 | $ | 71,179 | $ | 236,880 | $ | 188,434 | ||||||||
Interest income from subordinate loans and other lending assets | 43,421 | 37,308 | 125,303 | 105,236 | ||||||||||||
Interest expense | (39,341 | ) | (31,007 | ) | (109,147 | ) | (82,184 | ) | ||||||||
Net interest income | 85,216 | 77,480 | 253,036 | 211,486 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative expenses (includes equity-based compensation of $3,889 and $12,084 in 2019 and $4,048 and $11,404 in 2018, respectively) | (5,839 | ) | (5,843 | ) | (18,564 | ) | (16,493 | ) | ||||||||
Management fees to related party | (10,434 | ) | (9,515 | ) | (30,306 | ) | (26,620 | ) | ||||||||
Total operating expenses | (16,273 | ) | (15,358 | ) | (48,870 | ) | (43,113 | ) | ||||||||
Other income | 429 | 427 | 1,431 | 973 | ||||||||||||
Provision for loan losses and impairments, net of reversals | (35,000 | ) | — | (20,000 | ) | (5,000 | ) | |||||||||
Realized loss on investments | — | — | (12,513 | ) | — | |||||||||||
Foreign currency loss | (19,129 | ) | (4,050 | ) | (20,012 | ) | (23,574 | ) | ||||||||
Loss on early extinguishment of debt | — | (2,573 | ) | — | (2,573 | ) | ||||||||||
Gain on foreign currency forwards (includes unrealized gains of $16,227 and $12,029 in 2019 and $5,045 and $20,986 in 2018, respectively) | 24,153 | 6,291 | 28,619 | 28,797 | ||||||||||||
Unrealized loss on interest rate swap | (10,307 | ) | — | (23,420 | ) | — | ||||||||||
Net income | $ | 29,089 | $ | 62,217 | $ | 158,271 | $ | 166,996 | ||||||||
Preferred dividends | (3,385 | ) | (6,836 | ) | �� | (15,139 | ) | (20,505 | ) | |||||||
Net income available to common stockholders | $ | 25,704 | $ | 55,381 | $ | 143,132 | $ | 146,491 | ||||||||
Net income per share of common stock: | ||||||||||||||||
Basic | $ | 0.16 | $ | 0.42 | $ | 0.97 | $ | 1.19 | ||||||||
Diluted | $ | 0.16 | $ | 0.40 | $ | 0.97 | $ | 1.14 | ||||||||
Basic weighted-average shares of common stock outstanding | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 | ||||||||||||
Diluted weighted-average shares of common stock outstanding | 153,531,678 | 153,918,435 | 144,638,237 | 150,424,889 | ||||||||||||
Dividend declared per share of common stock | $ | 0.46 | $ | 0.46 | $ | 1.38 | $ | 1.38 |
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | |||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||
Balance at June 30, 2019 | 6,770,393 | $ | 68 | 153,531,597 | $ | 1,535 | $ | 2,817,542 | $ | (147,746 | ) | $ | 2,671,399 | ||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 159 | — | 3,889 | — | 3,889 | ||||||||||||||||||
Offering costs | — | — | — | — | (12 | ) | — | (12 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 29,089 | 29,089 | ||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (3,385 | ) | (3,385 | ) | ||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (71,470 | ) | (71,470 | ) | ||||||||||||||||
Balance at September 30, 2019 | 6,770,393 | $ | 68 | 153,531,756 | $ | 1,535 | $ | 2,821,419 | $ | (193,512 | ) | $ | 2,629,510 |
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 6,770,393 | $ | 68 | 153,537,296 | $ | 1,535 | $ | 2,825,317 | $ | (196,945) | $ | 2,629,975 | |||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-13, see Note 2 | — | — | — | — | — | (30,867) | (30,867) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital increase (decrease) related to Equity Incentive Plan | — | — | 503,251 | 5 | (2,236) | — | (2,231) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (300,000) | (3) | (2,438) | — | (2,441) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (127,842) | (127,842) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (3,385) | (3,385) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.40 per share | — | — | — | — | — | (62,298) | (62,298) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 6,770,393 | $ | 68 | 153,740,547 | $ | 1,537 | $ | 2,820,643 | $ | (421,337) | $ | 2,400,911 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 82,235 | 1 | 4,251 | — | 4,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (5,495,976) | (55) | (43,783) | — | (43,838) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 60,201 | 60,201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (3,385) | (3,385) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.35 per share | — | — | — | — | — | (52,635) | (52,635) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 6,770,393 | $ | 68 | 148,326,806 | $ | 1,483 | $ | 2,781,111 | $ | (417,156) | $ | 2,365,506 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 160 | — | 4,212 | — | 4,212 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (5,038,619) | (50) | (45,472) | — | (45,522) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 49,338 | 49,338 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (3,385) | (3,385) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.35 per share | — | — | — | — | — | (50,868) | (50,868) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 6,770,393 | $ | 68 | 143,288,347 | $ | 1,433 | $ | 2,739,851 | $ | (422,071) | $ | 2,319,281 | |||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 13,670,393 | $ | 137 | 133,853,565 | $ | 1,339 | $ | 2,638,441 | $ | (130,170) | $ | 2,509,747 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital increase (decrease) related to Equity Incentive Plan | — | — | 433,426 | 4 | (1,099) | — | (1,095) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversions of convertible senior notes for common stock | — | — | 1,967,361 | 20 | 33,758 | — | 33,778 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 67,758 | 67,758 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (6,835) | (6,835) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (63,529) | (63,529) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 13,670,393 | $ | 137 | 136,254,352 | $ | 1,363 | $ | 2,671,100 | $ | (132,776) | $ | 2,539,824 | |||||||||||||||||||||||||||||||||||||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 27,245 | — | 4,294 | — | 4,294 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 17,250,000 | 172 | 314,985 | — | 315,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | (6,900,000) | (69) | — | — | (172,431) | — | (172,500) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | (406) | — | (406) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 61,424 | 61,424 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (4,919) | (4,919) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (71,475) | (71,475) |
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | |||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||
Balance at June 30, 2018 | 13,670,393 | $ | 137 | 123,020,301 | $ | 1,230 | $ | 2,447,973 | $ | (106,687 | ) | $ | 2,342,653 | ||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 514 | 1 | 4,048 | — | 4,049 | ||||||||||||||||||
Exchange of convertible senior notes for common stock | — | — | 10,744,577 | 107 | 178,459 | — | 178,566 | ||||||||||||||||||
Offering Costs | — | — | — | — | (12 | ) | — | (12 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 62,217 | 62,217 | ||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (6,836 | ) | (6,836 | ) | ||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (62,266 | ) | (62,266 | ) | ||||||||||||||||
Balance at September 30, 2018 | 13,670,393 | $ | 137 | 133,765,392 | $ | 1,338 | $ | 2,630,468 | $ | (113,572 | ) | $ | 2,518,371 |
Balance at June 30, 2019 | Balance at June 30, 2019 | 6,770,393 | $ | 68 | 153,531,597 | $ | 1,535 | $ | 2,817,542 | $ | (147,746) | $ | 2,671,399 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital increase related to Equity Incentive Plan | Capital increase related to Equity Incentive Plan | — | — | 159 | — | 3,889 | — | 3,889 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par | Shares | Par | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 13,670,393 | $ | 137 | 133,853,565 | $ | 1,339 | $ | 2,638,441 | $ | (130,170 | ) | $ | 2,509,747 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 460,830 | 4 | 7,084 | $ | — | 7,088 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 17,250,000 | 172 | 314,985 | — | 315,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of preferred stock | (6,900,000 | ) | (69 | ) | — | — | (172,431 | ) | — | (172,500 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversions of convertible senior notes for common stock | — | — | 1,967,361 | 20 | 33,758 | — | 33,778 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offering costs | — | — | — | — | (418 | ) | — | (418 | ) | Offering costs | — | — | — | — | (12) | — | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 158,271 | 158,271 | Net income | — | — | — | — | — | 29,089 | 29,089 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (15,139 | ) | (15,139 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock - $0.50 per share | Dividends declared on preferred stock - $0.50 per share | — | — | — | — | — | (3,385) | (3,385) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (206,474 | ) | (206,474 | ) | Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (71,470) | (71,470) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 6,770,393 | $ | 68 | 153,531,756 | $ | 1,535 | $ | 2,821,419 | $ | (193,512 | ) | $ | 2,629,510 | Balance at September 30, 2019 | 6,770,393 | 68 | 153,531,756 | 1,535 | 2,821,419 | (193,512) | 2,629,510 |
Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Total | |||||||||||||||||||||
Shares | Par | Shares | Par | ||||||||||||||||||||||
Balance at January 1, 2018 | 13,670,393 | $ | 137 | 107,121,235 | $ | 1,071 | $ | 2,170,078 | $ | (83,143 | ) | $ | 2,088,143 | ||||||||||||
Capital increase related to Equity Incentive Plan | — | — | 374,580 | 5 | 6,672 | — | 6,677 | ||||||||||||||||||
Issuance of Common Stock | — | — | 15,525,000 | 155 | 275,724 | — | 275,879 | ||||||||||||||||||
Exchange of Convertible senior notes for common stock | — | — | 10,744,577 | 107 | 178,459 | — | 178,566 | ||||||||||||||||||
Offering Costs | — | — | — | — | (465 | ) | — | (465 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 166,996 | 166,996 | ||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (20,505 | ) | (20,505 | ) | ||||||||||||||||
Dividends declared on common stock - $0.46 per share | — | — | — | — | — | (176,920 | ) | (176,920 | ) | ||||||||||||||||
Balance at September 30, 2018 | 13,670,393 | $ | 137 | 133,765,392 | $ | 1,338 | $ | 2,630,468 | $ | (113,572 | ) | $ | 2,518,371 |
For the nine months ended September 30, | ||||||||||||||||||||||||
For the nine months ended September 30, | 2020 | 2019 | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Cash flows (used in) provided by operating activities: | ||||||||||||||||||||||||
Net income | $ | 158,271 | $ | 166,996 | ||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||
Cash flows provided by operating activities: | Cash flows provided by operating activities: | |||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | (18,303) | $ | 158,271 | |||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
Amortization of discount/premium and PIK | (61,949 | ) | (46,103 | ) | Amortization of discount/premium and PIK | (53,670) | (61,949) | |||||||||||||||||
Amortization of deferred financing costs | 8,535 | 8,204 | Amortization of deferred financing costs | 9,652 | 8,535 | |||||||||||||||||||
Equity-based compensation | 7,084 | 6,672 | Equity-based compensation | 12,721 | 7,084 | |||||||||||||||||||
Provision for loan losses and impairments, net of reversal | 20,000 | 5,000 | ||||||||||||||||||||||
Realized loss on investments | 12,513 | — | ||||||||||||||||||||||
Provision for loan losses | Provision for loan losses | 151,954 | 20,000 | |||||||||||||||||||||
Foreign currency loss | 22,111 | 22,162 | Foreign currency loss | 34,225 | 22,111 | |||||||||||||||||||
Unrealized (gain) loss on derivative instruments | 11,391 | (20,986 | ) | Unrealized (gain) loss on derivative instruments | (33,000) | 11,391 | ||||||||||||||||||
Loss on early extinguishment of debt | — | 2,573 | ||||||||||||||||||||||
Realized loss on investments | Realized loss on investments | 17,442 | 12,513 | |||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | |||||||||||||||||||||||
Proceeds received from PIK | 11,469 | 75,652 | Proceeds received from PIK | 0 | 11,469 | |||||||||||||||||||
Other assets | (4,216 | ) | (8,476 | ) | Other assets | (6,251) | (4,216) | |||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 2,462 | 8,087 | Accounts payable, accrued expenses and other liabilities | (1,233) | 2,462 | |||||||||||||||||||
Payable to related party | 630 | 1,347 | Payable to related party | (503) | 630 | |||||||||||||||||||
Net cash (used in) provided by operating activities | 188,301 | 221,128 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 113,034 | 188,301 | |||||||||||||||||||||
Cash flows used in investing activities: | Cash flows used in investing activities: | |||||||||||||||||||||||
New funding of commercial mortgage loans | (1,277,606 | ) | (1,382,440 | ) | New funding of commercial mortgage loans | (457,449) | (1,277,606) | |||||||||||||||||
Add-on funding of commercial mortgage loans | (271,720 | ) | (90,201 | ) | Add-on funding of commercial mortgage loans | (262,193) | (271,720) | |||||||||||||||||
New funding of subordinate loans and other lending assets | (493,017 | ) | (207,683 | ) | New funding of subordinate loans and other lending assets | 0 | (493,017) | |||||||||||||||||
Add-on funding of subordinate loans and other lending assets | (18,323 | ) | (84,852 | ) | Add-on funding of subordinate loans and other lending assets | (47,627) | (18,323) | |||||||||||||||||
Proceeds and payments received on commercial mortgage loans | 570,305 | 356,865 | ||||||||||||||||||||||
Proceeds and payments received on subordinate loans and other lending assets, net | 254,019 | 463,524 | ||||||||||||||||||||||
Proceeds received from the repayment and sale of commercial mortgage loans | Proceeds received from the repayment and sale of commercial mortgage loans | 528,782 | 570,305 | |||||||||||||||||||||
Proceeds received from the repayment of subordinate loans and other lending assets | Proceeds received from the repayment of subordinate loans and other lending assets | 5,122 | 254,019 | |||||||||||||||||||||
Origination and exit fees received on commercial mortgage loans, and subordinate loans and other lending assets, net | 24,524 | 32,473 | Origination and exit fees received on commercial mortgage loans, and subordinate loans and other lending assets, net | 6,420 | 24,524 | |||||||||||||||||||
(Decrease) Increase in collateral held related to derivative contracts | (19,830 | ) | 4,930 | |||||||||||||||||||||
Increase (decrease) in collateral held related to derivative contracts, net | Increase (decrease) in collateral held related to derivative contracts, net | 25,130 | (19,830) | |||||||||||||||||||||
Net cash (used in) provided by investing activities | (1,231,648 | ) | (907,384 | ) | Net cash (used in) provided by investing activities | (201,815) | (1,231,648) | |||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from issuance of common stock | 315,157 | 275,879 | Proceeds from issuance of common stock | 0 | 315,157 | |||||||||||||||||||
Redemption of preferred stock | (172,500 | ) | — | Redemption of preferred stock | 0 | (172,500) | ||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | (91,801) | 0 | |||||||||||||||||||||
Payment of offering costs | (153 | ) | (199 | ) | Payment of offering costs | 0 | (153) | |||||||||||||||||
Proceeds from secured debt arrangements | 1,948,037 | 1,623,186 | Proceeds from secured debt arrangements | 1,465,757 | 1,948,037 | |||||||||||||||||||
Repayments of secured debt arrangements | (1,264,223 | ) | (941,662 | ) | Repayments of secured debt arrangements | (1,083,849) | (1,264,223) | |||||||||||||||||
Repayments of senior secured term loan principal | (1,250 | ) | — | Repayments of senior secured term loan principal | (3,750) | (1,250) | ||||||||||||||||||
Proceeds from issuance of senior secured term loan | 497,500 | — | Proceeds from issuance of senior secured term loan | 0 | 497,500 | |||||||||||||||||||
Exchanges of convertible senior notes | (704 | ) | (40,461 | ) | Exchanges of convertible senior notes | 0 | (704) | |||||||||||||||||
Payment of deferred financing costs | (11,043 | ) | (11,545 | ) | Payment of deferred financing costs | (8,092) | (11,043) | |||||||||||||||||
Other financing activities | Other financing activities | (6,494) | 0 | |||||||||||||||||||||
Dividends on common stock | (197,757 | ) | (176,920 | ) | Dividends on common stock | (186,883) | (197,757) | |||||||||||||||||
Dividends on preferred stock | (18,589 | ) | (20,505 | ) | Dividends on preferred stock | (10,155) | (18,589) | |||||||||||||||||
Net cash (used in) provided by financing activities | 1,094,475 | 707,773 | Net cash (used in) provided by financing activities | 74,733 | 1,094,475 | |||||||||||||||||||
Net increase in cash and cash equivalents | 51,128 | 21,517 | Net increase in cash and cash equivalents | (14,048) | 51,128 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 109,806 | 77,671 | Cash and cash equivalents, beginning of period | 452,282 | 109,806 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 160,934 | $ | 99,188 | Cash and cash equivalents, end of period | $ | 438,234 | $ | 160,934 | |||||||||||||||
Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
Interest paid | $ | 96,201 | $ | 77,219 | Interest paid | $ | 100,573 | $ | 96,201 | |||||||||||||||
Supplemental disclosure of non-cash financing activities: | Supplemental disclosure of non-cash financing activities: | |||||||||||||||||||||||
Exchange of convertible senior notes for common stock | $ | 33,778 | $ | 178,567 | Exchange of convertible senior notes for common stock | $ | 0 | $ | 33,778 | |||||||||||||||
Dividend declared, not yet paid | $ | 74,855 | $ | 68,536 | Dividend declared, not yet paid | $ | 54,254 | $ | 74,855 | |||||||||||||||
Offering costs payable | $ | 200 | $ | 265 | Offering costs payable | $ | 0 | $ | 200 | |||||||||||||||
Loan proceeds held by servicer | $ | 3,323 | $ | — | Loan proceeds held by servicer | $ | 0 | $ | 3,323 | |||||||||||||||
Deferred financing costs, not yet paid | $ | 5,420 | $ | — | Deferred financing costs, not yet paid | $ | 2,596 | $ | 5,420 | |||||||||||||||
Transfer of proceeds borrowed under secured credit facilities to Barclays Private Securitization | Transfer of proceeds borrowed under secured credit facilities to Barclays Private Securitization | $ | 782,006 | $ | 0 | |||||||||||||||||||
Restructuring of subordinate loan to commercial mortgage loan | Restructuring of subordinate loan to commercial mortgage loan | $ | 68,500 | $ | 0 |
Fair Value as of September 30, 2020 | Fair Value as of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward, net | $ | 0 | $ | 13,481 | $ | 0 | $ | 13,481 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap | 0 | 173 | 0 | 173 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial instruments assets | $ | 0 | $ | 13,654 | $ | 0 | $ | 13,654 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
Fair Value as of September 30, 2019 | Fair Value as of December 31, 2018 | ||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||
Foreign currency forward assets, net | $ | — | $ | 35,729 | $ | — | $ | 35,729 | $ | — | $ | 23,700 | $ | — | $ | 23,700 | |||||||||||||||
Interest rate swap liability | — | (23,420 | ) | — | (23,420 | ) | — | — | — | — |
Fair Value as of September 30, 2020 | Fair Value as of December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward, net | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 4,876 | $ | 0 | $ | 4,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap liability | 0 | 0 | 0 | 0 | 0 | 14,470 | 0 | 14,470 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial instrument liabilities | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 19,346 | $ | 0 | $ | 19,346 |
Loan Type | September 30, 2020 | December 31, 2019 | ||||||||||||
Commercial mortgage loans, net (1) | $ | 5,427,945 | $ | 5,326,967 | ||||||||||
Subordinate loans and other lending assets, net | 1,009,092 | 1,048,126 | ||||||||||||
Carrying value, net | $ | 6,437,037 | $ | 6,375,093 |
Loan Type | September 30, 2019 | December 31, 2018 | ||||||
Commercial mortgage loans, net | $ | 4,779,501 | $ | 3,878,981 | ||||
Subordinate loans and other lending assets, net | 1,335,073 | 1,048,612 | ||||||
Total investments, net | $ | 6,114,574 | $ | 4,927,593 |
Principal Balance | Deferred Fees/Other Items (1) | Provision for Loan Loss (2) | Carrying Value | |||||||||||||
December 31, 2018 | $ | 4,982,514 | $ | (17,940 | ) | $ | (36,981 | ) | $ | 4,927,593 | ||||||
New loan fundings | 1,770,623 | — | — | 1,770,623 | ||||||||||||
Add-on loan fundings (3) | 290,043 | — | — | 290,043 | ||||||||||||
Loan repayments | (843,417 | ) | — | — | (843,417 | ) | ||||||||||
Gain (loss) on foreign currency translation | (38,505 | ) | 105 | — | (38,400 | ) | ||||||||||
Realized loss on investment, net of provision for loan loss reversal (2) | (12,513 | ) | — | 15,000 | 2,487 | |||||||||||
Provision for loan losses | — | — | (35,000 | ) | (35,000 | ) | ||||||||||
Deferred fees | — | (24,524 | ) | — | (24,524 | ) | ||||||||||
PIK interest and amortization of fees | 43,728 | 21,441 | — | 65,169 | ||||||||||||
September 30, 2019 | $ | 6,192,473 | $ | (20,918 | ) | $ | (56,981 | ) | $ | 6,114,574 |
Principal Balance | Deferred Fees/Other Items (1) | Specific Provision for Loan Loss | Carrying Value, Net | |||||||||||||||||||||||
December 31, 2019 | $ | 6,467,842 | $ | (35,768) | $ | (56,981) | $ | 6,375,093 | ||||||||||||||||||
New loan fundings | 457,449 | — | — | 457,449 | ||||||||||||||||||||||
Add-on loan fundings (2) | 309,820 | — | — | 309,820 | ||||||||||||||||||||||
Loan repayments and sales | (543,535) | — | — | (543,535) | ||||||||||||||||||||||
Gain (loss) on foreign currency translation | (15,060) | 543 | — | (14,517) | ||||||||||||||||||||||
Specific CECL Allowance | — | — | (139,950) | (139,950) | ||||||||||||||||||||||
Realized loss on investment | (20,569) | 3,127 | — | (17,442) | ||||||||||||||||||||||
Deferred fees | — | (6,027) | — | (6,027) | ||||||||||||||||||||||
PIK interest and amortization of fees | 38,197 | 17,225 | — | 55,422 | ||||||||||||||||||||||
September 30, 2020 | $ | 6,694,144 | $ | (20,900) | $ | (196,931) | $ | 6,476,313 | ||||||||||||||||||
General CECL Allowance (3) | (39,276) | |||||||||||||||||||||||||
Carrying value, net | $ | 6,437,037 |
September 30, 2020 | December 31, 2019 | |||||||||||||
Number of loans | 70 | 72 | ||||||||||||
Principal balance | $ | 6,694,144 | $ | 6,467,842 | ||||||||||
Carrying value, net | $ | 6,437,037 | $ | 6,375,093 | ||||||||||
Unfunded loan commitments (1) | $ | 1,426,404 | $ | 1,952,887 | ||||||||||
Weighted-average cash coupon (2) | 5.6 | % | 6.5 | % | ||||||||||
Weighted-average remaining fully-extended term (3) | 2.9 years | 3.3 years | ||||||||||||
Weighted-average expected term (4) | 2.0 years | 1.8 years |
September 30, 2019 | December 31, 2018 | |||||||
Number of loans | 74 | 69 | ||||||
Principal balance | $ | 6,192,473 | $ | 4,982,514 | ||||
Carrying value | $ | 6,114,574 | $ | 4,927,593 | ||||
Unfunded loan commitments (1) | $ | 1,073,423 | $ | 1,095,598 | ||||
Weighted-average cash coupon (2) | 7.5 | % | 8.4 | % | ||||
Weighted-average remaining term (3) | 3.1 years | 2.8 years |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Property Type | Carrying Value | % of Portfolio(1) | Carrying Value | % of Portfolio | ||||||||||||||||||||||||||||||||||
Office | $ | 1,832,607 | 28.3 | % | $ | 1,401,400 | 22.0 | % | ||||||||||||||||||||||||||||||
Hotel | 1,578,614 | 24.4 | 1,660,162 | 26.0 | ||||||||||||||||||||||||||||||||||
Residential-for-sale: construction | 894,610 | 13.8 | 692,816 | 10.9 | ||||||||||||||||||||||||||||||||||
Residential-for-sale: inventory | 150,015 | 2.3 | 321,673 | 5.1 | ||||||||||||||||||||||||||||||||||
Urban Retail | 636,308 | 9.8 | 643,706 | 10.1 | ||||||||||||||||||||||||||||||||||
Urban Predevelopment | 295,728 | 4.6 | 409,864 | 6.4 | ||||||||||||||||||||||||||||||||||
Healthcare | 363,170 | 5.6 | 371,423 | 5.8 | ||||||||||||||||||||||||||||||||||
Industrial | 228,674 | 3.5 | 227,940 | 3.6 | ||||||||||||||||||||||||||||||||||
Other | 496,587 | 7.7 | 646,109 | 10.1 | ||||||||||||||||||||||||||||||||||
Total | $ | 6,476,313 | 100.0 | % | $ | 6,375,093 | 100.0 | % | ||||||||||||||||||||||||||||||
General CECL Allowance (2) | (39,276) | |||||||||||||||||||||||||||||||||||||
Carrying value, net | $ | 6,437,037 |
September 30, 2019 | December 31, 2018 | |||||||||||||
Property Type | Carrying Value | % of Portfolio | Carrying Value | % of Portfolio | ||||||||||
Hotel | $ | 1,579,667 | 25.8 | % | $ | 1,286,590 | 26.1 | % | ||||||
Residential-for-sale: construction | 629,069 | 10.3 | % | 528,510 | 10.7 | % | ||||||||
Residential-for-sale: inventory | 349,259 | 5.7 | % | 577,053 | 11.7 | % | ||||||||
Office | 1,406,678 | 23.0 | % | 832,620 | 16.9 | % | ||||||||
Urban Predevelopment | 602,946 | 9.9 | % | 683,886 | 13.9 | % | ||||||||
Urban Retail | 466,343 | 7.6 | % | — | — | % | ||||||||
Multifamily | 306,142 | 5.0 | % | 448,899 | 9.1 | % | ||||||||
Industrial | 227,696 | 3.7 | % | 32,000 | 0.6 | % | ||||||||
Retail Center | 126,068 | 2.1 | % | 156,067 | 3.2 | % | ||||||||
Healthcare | 190,832 | 3.1 | % | 156,814 | 3.2 | % | ||||||||
Other | 127,229 | 2.1 | % | 151,197 | 3.1 | % | ||||||||
Mixed Use | 102,645 | 1.7 | % | 73,957 | 1.5 | % | ||||||||
Total | $ | 6,114,574 | 100.0 | % | $ | 4,927,593 | 100.0 | % |
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Geographic Location | Carrying Value | % of Portfolio(1) | Carrying Value | % of Portfolio | ||||||||||||||||||||||||||||||||||
New York City | $ | 2,393,012 | 37.0 | % | $ | 2,167,487 | 34.0 | % | ||||||||||||||||||||||||||||||
Northeast | 138,448 | 2.1 | 110,771 | 1.7 | ||||||||||||||||||||||||||||||||||
United Kingdom | 1,179,761 | 18.2 | 1,274,390 | 20.0 | ||||||||||||||||||||||||||||||||||
West | 741,971 | 11.5 | 728,182 | 11.4 | ||||||||||||||||||||||||||||||||||
Midwest | 556,011 | 8.6 | 614,337 | 9.6 | ||||||||||||||||||||||||||||||||||
Southeast | 576,420 | 8.9 | 564,166 | 8.9 | ||||||||||||||||||||||||||||||||||
Other | 890,690 | 13.7 | 915,760 | 14.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 6,476,313 | 100.0 | % | $ | 6,375,093 | 100.0 | % | ||||||||||||||||||||||||||||||
General CECL Allowance (2) | (39,276) | |||||||||||||||||||||||||||||||||||||
Carrying value, net | $ | 6,437,037 |
September 30, 2019 | December 31, 2018 | |||||||||||||
Geographic Location | Carrying Value | % of Portfolio | Carrying Value | % of Portfolio | ||||||||||
Manhattan, NY | $ | 2,286,709 | 37.4 | % | $ | 1,669,145 | 33.9 | % | ||||||
Brooklyn, NY | 443,966 | 7.3 | % | 346,056 | 7.0 | % | ||||||||
Northeast | 19,195 | 0.3 | % | 23,479 | 0.5 | % | ||||||||
West | 728,788 | 11.9 | % | 614,160 | 12.5 | % | ||||||||
Midwest | 626,867 | 10.3 | % | 631,710 | 12.8 | % | ||||||||
Southeast | 568,103 | 9.3 | % | 559,043 | 11.3 | % | ||||||||
Southwest | 126,506 | 2.1 | % | 96,345 | 2.0 | % | ||||||||
Mid Atlantic | 110,895 | 1.8 | % | 211,775 | 4.3 | % | ||||||||
United Kingdom | 815,168 | 13.3 | % | 700,460 | 14.2 | % | ||||||||
Germany | 185,208 | 3.0 | % | — | — | % | ||||||||
Italy | 129,524 | 2.1 | % | — | — | % | ||||||||
Other International | 73,645 | 1.2 | % | 75,420 | 1.5 | % | ||||||||
Total | $ | 6,114,574 | 100.0 | % | $ | 4,927,593 | 100.0 | % |
September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Originated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | Number of Loans | Total | % of Portfolio | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | 0 | $ | 0 | 0 | % | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | 1 | 32,000 | 0.5 | % | 0 | 0 | 0 | 0 | 0 | 32,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | 62 | 6,035,647 | 93.2 | % | 450,119 | 2,685,060 | 1,350,949 | 815,789 | 88,685 | 645,045 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | 0 | 0 | 0 | % | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | 7 | 408,666 | 6.3 | % | 0 | 0 | 28,872 | 137,798 | 114,910 | 127,086 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | 70 | $ | 6,476,313 | 100.0 | % | $ | 450,119 | $ | 2,685,060 | $ | 1,379,821 | $ | 953,587 | $ | 203,595 | $ | 804,131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General CECL Allowance | (39,276) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total carrying value, net | $ | 6,437,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Risk Rating | 3.1 |
December 31, 2019 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | Year Originated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | Number of Loans | Carrying Value | % of Loan Portfolio | Number of Loans | Carrying Value | % of Loan Portfolio | Risk Rating | Number of Loans | Total | % of Portfolio | 2019 | 2018 | 2017 | 2016 | 2015 | Prior | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | — | $ | — | — | % | — | $ | — | — | % | 1 | 0 | $ | 0 | 0 | % | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | 9 | 470,409 | 8 | % | 3 | 138,040 | 3 | % | 2 | 8 | 348,324 | 5.5 | % | 0 | 241,676 | 0 | 36,250 | 24,546 | 45,852 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | 63 | 5,502,402 | 90 | % | 63 | 4,573,930 | 93 | % | 3 | 61 | 5,707,555 | 89.5 | % | 2,736,825 | 1,355,014 | 912,636 | 72,540 | 499,700 | 130,840 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | — | — | — | % | — | — | — | % | 4 | 1 | 182,910 | 2.9 | % | 0 | 0 | 0 | 182,910 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | 2 | 141,763 | 2 | % | 3 | 215,623 | 4 | % | 5 | 2 | 136,304 | 2.1 | % | 0 | 0 | 0 | 0 | 0 | 136,304 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 72 | $ | 6,375,093 | 100.0 | % | $ | 2,736,825 | $ | 1,596,690 | $ | 912,636 | $ | 291,700 | $ | 524,246 | $ | 312,996 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
74 | $ | 6,114,574 | 100 | % | 69 | $ | 4,927,593 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average risk rating | 3.0 | 3.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Risk Rating | Weighted Average Risk Rating | 3.0 |
September 30, 2020 | January 1, 2020(1) | |||||||||||||
Commercial mortgage loans, net | $ | 20,161 | $ | 12,149 | ||||||||||
Subordinate loans and other lending assets, net | 19,115 | 15,630 | ||||||||||||
Unfunded commitments(2) | 3,595 | 3,088 | ||||||||||||
Total General CECL Allowance | $ | 42,871 | $ | 30,867 |
Specific CECL Allowance(1) | General CECL Allowance | Total CECL Allowance | CECL Allowance as % of Amortized Cost | |||||||||||||||||||||||||||||||||||||||||
Funded | Unfunded | Total | General | Total | ||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | $56,981 | $ | 0 | $ | 0 | $ | 0 | $ | 56,981 | 0 | % | 0 | % | |||||||||||||||||||||||||||||||
Changes: | ||||||||||||||||||||||||||||||||||||||||||||
January 1, 2020 - Adoption of CECL Standard | 0 | 27,779 | 3,088 | 30,867 | 30,867 | |||||||||||||||||||||||||||||||||||||||
Q1 Allowances | 150,000 | 30,494 | 2,971 | 33,465 | 183,465 | |||||||||||||||||||||||||||||||||||||||
March 31, 2020 | $ | 206,981 | $ | 58,273 | $ | 6,059 | $ | 64,332 | $ | 271,313 | 1.08 | % | 4.05 | % | ||||||||||||||||||||||||||||||
Changes: | ||||||||||||||||||||||||||||||||||||||||||||
Q2 Allowances (Reversals) | 5,500 | (13,729) | (1,940) | (15,669) | (10,169) | |||||||||||||||||||||||||||||||||||||||
Realized Loss | (15,000) | 0 | 0 | 0 | (15,000) | |||||||||||||||||||||||||||||||||||||||
June 30, 2020 | $ | 197,481 | $ | 44,544 | $ | 4,119 | $ | 48,663 | $ | 246,144 | 0.81 | % | 3.71 | % | ||||||||||||||||||||||||||||||
Changes: | ||||||||||||||||||||||||||||||||||||||||||||
Q3 Reversals | (550) | (5,268) | (524) | (5,792) | (6,342) | |||||||||||||||||||||||||||||||||||||||
September 30, 2020 | $ | 196,931 | $ | 39,276 | $ | 3,595 | $ | 42,871 | $ | 239,802 | 0.71 | % | 3.59 | % |
Type | Property type | Location | Amortized cost(1) | Interest recognition status/ as of date | |||||||||||||
Mortgage | |||||||||||||||||
Urban Predevelopment(3) | Brooklyn, NY | 128,418 | Cost Recovery/ 3/1/2020 | ||||||||||||||
Urban Predevelopment(3) | Miami, FL | 114,910 | Cost Recovery/ 3/1/2020 | ||||||||||||||
Retail Center(4)(5) | Cincinnati, OH | 105,561 | Cost Recovery/ 10/1/2019 | ||||||||||||||
Hotel(2) | Pittsburgh, PA | 28,872 | Cost Recovery/ 3/31/2020 | ||||||||||||||
Residential-for-sale: inventory(6)(7) | Bethesda, MD | 3,095 | Cost Recovery/ 1/1/2018 | ||||||||||||||
Mortgage total: | $ | 380,856 | |||||||||||||||
Mezzanine | |||||||||||||||||
Hotel(2) | Washington, DC | 18,430 | Cost Recovery/ 3/31/2020 | ||||||||||||||
Hotel(8) | Anaheim, CA | 9,380 | Cost Recovery/ 9/30/2020 | ||||||||||||||
Mezzanine total: | $ | 27,810 | |||||||||||||||
Grand total: | $ | 408,666 |
September 30, 2020 | December 31, 2019 | ||||||||||
Interest receivable | $ | 38,401 | $ | 35,581 | |||||||
Collateral deposited under derivative agreements | 1,810 | 17,090 | |||||||||
Other | 3,433 | 45 | |||||||||
Total | $ | 43,644 | $ | 52,716 |
September 30, 2019 | December 31, 2018 | ||||||
Interest receivable | $ | 36,908 | $ | 33,399 | |||
Other | 950 | 321 | |||||
Total | $ | 37,858 | $ | 33,720 |
September 30, 2019 (2) | December 31, 2018 (2) | |||||||||||||||||||
Maximum Amount of Borrowings | Borrowings Outstanding | Maturity (1) | Maximum Amount of Borrowings | Borrowings Outstanding | Maturity (1) | |||||||||||||||
JPMorgan Facility (USD) | $ | 1,253,271 | $ | 1,067,635 | June 2024 | $ | 1,333,503 | $ | 680,141 | June 2021 | ||||||||||
JPMorgan Facility (GBP) | 46,729 | 46,729 | June 2024 | 48,497 | 48,497 | June 2021 | ||||||||||||||
DB Repurchase Facility (USD) | 1,116,993 | 558,905 | March 2021 | 904,181 | 419,823 | March 2021 | ||||||||||||||
DB Repurchase Facility (GBP) | 133,007 | 133,007 | March 2021 | 150,819 | 150,819 | March 2021 | ||||||||||||||
Goldman Facility | 500,000 | 267,711 | November 2021 | 300,000 | 210,072 | November 2020 | ||||||||||||||
CS Facility - USD | 174,279 | 174,279 | March 2020 | 187,117 | 187,117 | June 2019 | ||||||||||||||
CS Facility - GBP | 124,707 | 124,707 | March 2020 | 151,773 | 151,773 | June 2019 | ||||||||||||||
HSBC Facility - GBP | 36,621 | 36,621 | December 2019 | 48,835 | 48,835 | December 2019 | ||||||||||||||
HSBC Facility - EUR | 149,724 | 149,724 | January 2021 | — | — | N/A | ||||||||||||||
Sub-total | 3,535,331 | 2,559,318 | 3,124,725 | 1,897,077 | ||||||||||||||||
less: deferred financing costs | N/A | (18,031 | ) | N/A | (17,555 | ) | ||||||||||||||
Total / Weighted-Average | $ | 3,535,331 | $ | 2,541,287 | $ | 3,124,725 | $ | 1,879,522 | ||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum Amount of Borrowings(1) | Borrowings Outstanding(1) | Maturity (2) | Maximum Amount of Borrowings(1) | Borrowings Outstanding(1) | Maturity (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
JPMorgan (USD) | $ | 1,132,013 | $ | 989,278 | June 2024 | $ | 1,154,109 | $ | 1,090,160 | June 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
JPMorgan (GBP) | 97,661 | 97,661 | June 2024 | 51,702 | 50,410 | June 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
JPMorgan (EUR) | 70,326 | 70,326 | June 2024 | 94,189 | 94,189 | June 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DB (USD) | 1,000,000 | 526,743 | March 2023 | 1,250,000 | 513,876 | March 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goldman (USD) | 500,000 | 362,139 | November 2021 | 500,000 | 322,170 | November 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CS - USD | 378,903 | 378,781 | January 2023(3) | 226,068 | 218,644 | June 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CS - GBP | — | — | N/A(4) | 93,915 | 93,915 | June 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HSBC - USD | 47,223 | 47,223 | January 2021 | 50,625 | 50,625 | October 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HSBC - GBP | 0 | 0 | N/A | 34,634 | 34,634 | June 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
HSBC - EUR | 157,148 | 157,148 | July 2021 | 154,037 | 154,037 | January 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Barclays (USD) | 200,000 | 35,192 | March 2024 | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Barclays (GBP) | — | — | N/A(4) | 538,916 | 290,347 | February 2024(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Barclays (EUR) | — | — | N/A(4) | 182,549 | 182,549 | November 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Credit Facilities | 3,583,274 | 2,664,491 | 4,330,744 | 3,095,556 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Barclays Private Securitization | 813,592 | 813,592 | March 2024(5) | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Debt Arrangements | 4,396,866 | 3,478,083 | 4,330,744 | 3,095,556 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
less: deferred financing costs | N/A | (12,746) | N/A | (17,190) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Debt Arrangements, net(6)(7)(8) | $ | 4,396,866 | $ | 3,465,337 | $ | 4,330,744 | $ | 3,078,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings outstanding | Fully-Extended Maturity(1) | |||||||
Total/Weighted-Average GBP | $670,024 | January 2024 | ||||||
Total/Weighted-Average EUR | 143,568 | August 2021(2) | ||||||
Total/Weighted-Average Securitization | $813,592 | March 2024 |
September 30, 2020 | |||||
Assets: | |||||
Cash | $ | 921 | |||
Commercial mortgage loans, net(1) | 1,224,154 | ||||
Other Assets | 9,401 | ||||
Total Assets | $ | 1,234,476 | |||
Liabilities: | |||||
Secured debt arrangements, net (net of deferred financing costs of $0.2 million) | $ | 813,431 | |||
Accounts payable, accrued expenses and other liabilities(2) | 1,084 | ||||
Total Liabilities | $ | 814,515 |
Three months ended | |||||
September 30, 2020 | |||||
Net Interest Income: | |||||
Interest income from commercial mortgage loans | $ | 15,075 | |||
Interest expense | (4,278) | ||||
Net interest income | $ | 10,797 | |||
Provision for loan losses and impairments | $ | (2,318) | |||
Foreign currency gain | 17,078 | ||||
Net Income | $ | 25,557 |
Less than 1 year (1) | 1 to 3 years (1) | 3 to 5 years (1) | More than 5 years | Total | |||||||||||||||
JPMorgan Facility | $ | 60,500 | $ | 311,219 | $ | 742,645 | $ | — | $ | 1,114,364 | |||||||||
DB Repurchase Facility | 102,896 | 589,016 | — | — | 691,912 | ||||||||||||||
Goldman Facility | — | 267,711 | — | — | 267,711 | ||||||||||||||
CS Facility - USD | 174,279 | — | — | — | 174,279 | ||||||||||||||
CS Facility - GBP | 124,707 | — | — | — | 124,707 | ||||||||||||||
HSBC Facility - GBP | 36,621 | — | — | — | 36,621 | ||||||||||||||
HSBC Facility - EUR | — | 149,724 | — | — | 149,724 | ||||||||||||||
Total | $ | 499,003 | $ | 1,317,670 | $ | 742,645 | $ | — | $ | 2,559,318 |
Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | Total | |||||||||||||||||||||||||
JPMorgan | $ | 45,918 | $ | 432,440 | $ | 678,907 | $ | 0 | $ | 1,157,265 | |||||||||||||||||||
DB | 15,594 | 511,149 | 0 | 0 | 526,743 | ||||||||||||||||||||||||
Goldman | 0 | 362,139 | 0 | 0 | 362,139 | ||||||||||||||||||||||||
CS - USD | 94,299 | 146,994 | 137,488 | 0 | 378,781 | ||||||||||||||||||||||||
HSBC - USD | 47,223 | 0 | 0 | 0 | 47,223 | ||||||||||||||||||||||||
HSBC - EUR | 157,148 | 0 | 0 | 0 | 157,148 | ||||||||||||||||||||||||
Barclays - USD | 0 | 0 | 35,192 | 0 | 35,192 | ||||||||||||||||||||||||
Barclays Private Securitization | 143,568 | 289,769 | 380,255 | 0 | 813,592 | ||||||||||||||||||||||||
Total | $ | 503,750 | $ | 1,742,491 | $ | 1,231,842 | $ | 0 | $ | 3,478,083 |
As of September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||
Balance | Amortized Cost of Collateral | Maximum Month-End Balance | Average Month-End Balance | ||||||||||||||||||||||||||||||||
JPMorgan | $ | 1,157,265 | $ | 1,976,965 | $ | 1,192,288 | $ | 1,106,461 | |||||||||||||||||||||||||||
DB | 526,743 | 804,835 | 526,743 | 501,470 | |||||||||||||||||||||||||||||||
Goldman | 362,139 | 548,671 | 362,139 | 343,882 | |||||||||||||||||||||||||||||||
CS - USD | 378,781 | 523,272 | 378,781 | 339,425 | |||||||||||||||||||||||||||||||
CS - GBP | — | 0 | 90,111 | 57,459 | |||||||||||||||||||||||||||||||
HSBC - USD | 47,223 | 67,203 | 50,625 | 48,357 | |||||||||||||||||||||||||||||||
HSBC - GBP | 0 | 0 | 34,500 | 32,900 | |||||||||||||||||||||||||||||||
HSBC - EUR | 157,148 | 204,040 | 160,034 | 152,982 | |||||||||||||||||||||||||||||||
Barclays - USD | 35,192 | 49,929 | 35,193 | 27,372 | |||||||||||||||||||||||||||||||
Barclays - GBP | 0 | 0 | 666,810 | 347,590 |
Barclays - EUR | 0 | 0 | 180,595 | 94,028 | |||||||||||||||||||
Barclays Private Securitization | 813,592 | 1,230,305 | 839,563 | 814,844 | |||||||||||||||||||
Total | $ | 3,478,083 | $ | 5,405,220 |
As of September 30, 2019 | For the nine months ended September 30, 2019 | ||||||||||||||
Balance | Amortized Cost of Collateral | Maximum Month-End Balance | Average Month-End Balance | ||||||||||||
JPMorgan Facility | $ | 1,114,364 | $ | 1,809,170 | $ | 1,150,317 | $ | 875,895 | |||||||
DB Repurchase Facility | 691,912 | 1,205,456 | 691,912 | 598,285 | |||||||||||
Goldman Facility | 267,711 | 445,898 | 312,507 | 220,631 | |||||||||||
CS Facility - USD | 174,279 | 241,989 | 188,037 | 180,792 | |||||||||||
CS Facility - GBP | 124,707 | 178,612 | 150,811 | 139,991 | |||||||||||
HSBC Facility - GBP | 36,621 | 52,593 | 50,784 | 44,007 | |||||||||||
HSBC Facility - EUR | 149,724 | 185,208 | 152,155 | 150,914 | |||||||||||
Total | $ | 2,559,318 | $ | 4,118,926 |
As of December 31, 2019 | For the year ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
Balance | Amortized Cost of Collateral | Maximum Month-End Balance | Average Month-End Balance | ||||||||||||||||||||||||||||||||
JPMorgan | $ | 1,234,759 | $ | 1,845,400 | $ | 1,234,759 | $ | 947,400 | |||||||||||||||||||||||||||
DB | 513,876 | 766,676 | 757,117 | 604,067 | |||||||||||||||||||||||||||||||
Goldman | 322,170 | 513,559 | 324,821 | 246,318 | |||||||||||||||||||||||||||||||
CS - USD | 218,644 | 308,884 | 218,644 | 182,646 | |||||||||||||||||||||||||||||||
CS - GBP | 93,915 | 129,723 | 150,811 | 134,694 | |||||||||||||||||||||||||||||||
HSBC - USD | 50,625 | 66,960 | 50,625 | 50,625 | |||||||||||||||||||||||||||||||
HSBC - GBP | 34,634 | 49,976 | 50,784 | 42,296 | |||||||||||||||||||||||||||||||
HSBC - EUR | 154,037 | 190,780 | 154,037 | 151,889 | |||||||||||||||||||||||||||||||
Barclays - GBP | 290,347 | 738,455 | 290,347 | 139,004 | |||||||||||||||||||||||||||||||
Barclays - EUR | 182,549 | 241,674 | 182,549 | 181,159 | |||||||||||||||||||||||||||||||
Total | $ | 3,095,556 | $ | 4,852,087 |
Principal Amount | Coupon Rate | Effective Rate (1) | Conversion Rate (2) | Maturity Date | Remaining Period of Amortization | Principal Amount | Coupon Rate | Effective Rate (1) | Conversion Rate (2) | Maturity Date | Remaining Period of Amortization | ||||||||||||||||||||
2022 Notes | $ | 345,000 | 4.75 | % | 5.60 | % | 50.2260 | 8/23/2022 | 2.90 | 2022 Notes | $ | 345,000 | 4.75 | % | 5.60 | % | 50.2260 | 8/23/2022 | 1.90 | ||||||||||||
2023 Notes | 230,000 | 5.38 | % | 6.16 | % | 48.7187 | 10/15/2023 | 4.04 | 2023 Notes | 230,000 | 5.38 | % | 6.16 | % | 48.7187 | 10/15/2023 | 3.04 | ||||||||||||||
Total | $ | 575,000 | Total | $ | 575,000 |
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Contracts | Aggregate Notional Amount (in thousands) | Notional Currency | Maturity | Weighted-Average Years to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||
Fx contracts - GBP | 106 | 422,585 | GBP | October 2020 - December 2024 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fx contracts - EUR | 70 | 238,817 | EUR | November 2020 - August 2024 | 2.79 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap | 1 | 500,000 | USD | June 2023 | 2.71 |
September 30, 2019 | |||||||||
Number of Contracts | Aggregate Notional Amount (in thousands) | Notional Currency | Maturity | Weighted-Average Years to Maturity | |||||
Fx Contracts - GBP | 97 | 431,334 | GBP | October 2019 - April 2022 | 0.75 | ||||
Fx Contracts - EUR | 27 | 178,922 | EUR | October 2019 - February 2023 | 1.47 | ||||
Interest Rate Swap | 1 | 500,000 | USD | May 2026 | 6.62 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Contracts | Aggregate Notional Amount (in thousands) | Notional Currency | Maturity | Weighted-Average Years to Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||
Fx contracts - GBP | 156 | 735,349 | GBP | January 2020 - December 2024 | 1.49 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fx contracts - EUR | 44 | 168,879 | EUR | February 2020 - August 2024 | 3.22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | 1 | 500,000 | USD | May 2026 | 6.37 |
December 31, 2018 | |||||||||
Number of Contracts | Aggregate Notional Amount (in thousands) | Notional Currency | Maturity | Weighted-Average Years to Maturity | |||||
Fx Contracts - GBP | 43 | 270,161 | GBP | January 2019 - November 2020 | 0.69 |
Amount of gain (loss) recognized in income | Amount of gain (loss) recognized in income | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
Location of Gain (Loss) Recognized in Income | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Forward currency contracts | Gain on derivative instruments - unrealized | $ | 16,227 | $ | 5,046 | $ | 12,029 | $ | 20,987 | ||||||||
Forward currency contracts | Gain on derivative instruments - realized | 7,926 | 1,246 | 16,590 | 7,811 | ||||||||||||
Interest rate caps(1) | Loss on derivative instruments - unrealized | — | (1 | ) | — | (1 | ) | ||||||||||
Gain on derivative instruments | 24,153 | 6,291 | 28,619 | 28,797 |
Amount of gain (loss) recognized in income | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Forward currency contracts | Unrealized gain (loss) on derivative instruments | $ | (35,076) | $ | 16,227 | $ | 18,356 | $ | 12,029 | ||||||||||||||||||||||||||||||||||||||
Forward currency contracts | Realized gain on derivative instruments | 539 | 7,926 | 14,603 | 16,590 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | (34,537) | $ | 24,153 | $ | 32,959 | $ | 28,619 |
Amount of loss recognized in income | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Location of Loss Recognized in Income | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Interest rate cap(1) | Unrealized gain (loss) on interest rate cap | $ | (564) | $ | 0 | $ | 174 | $ | 0 | ||||||||||||||||||||||||||||||||||||||
Interest rate swap(2) | Unrealized gain (loss) on interest rate swap | 0 | (10,307) | 14,470 | (23,420) | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap(2) | Realized loss on interest rate swap | 0 | 0 | (53,851) | 0 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | (564) | $ | (10,307) | $ | (39,207) | $ | (23,420) |
Amount of loss recognized in income | Amount of loss recognized in income | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
Location of Loss Recognized in Income | 2019 | 2018 | 2019 | 2018 | |||||||||
Interest rate swap(1) | Unrealized loss on interest rate swap | (10,307 | ) | — | (23,420 | ) | — |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount of Recognized Assets | Gross Amounts Offset in our Condensed Consolidated Balance Sheet | Net Amounts of Assets Presented in our Condensed Consolidated Balance Sheet | Gross Amount of Recognized Assets | Gross Amounts Offset in our Condensed Consolidated Balance Sheet | Net Amounts of Assets Presented in our Condensed Consolidated Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward currency contracts | $ | 20,788 | $ | (7,307) | $ | 13,481 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate cap | 173 | 0 | 173 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 20,961 | $ | (7,307) | $ | 13,654 | $ | 0 | $ | 0 | $ | 0 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gross Amount of Recognized Assets (Liabilities) | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | Gross Amount of Recognized Assets | Gross Amounts Offset in the Condensed Consolidated Balance Sheet | Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet | ||||||||||||||||||
Forward currency contracts | $ | 35,811 | $ | (82 | ) | $ | 35,729 | $ | 23,753 | $ | (53 | ) | $ | 23,700 | |||||||||
Interest rate swap | (23,420 | ) | — | (23,420 | ) | — | — | — |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount of Recognized Liability | Gross Amounts Offset in our Condensed Consolidated Balance Sheet | Net Amounts of Liability Presented in our Condensed Consolidated Balance Sheet | Gross Amount of Recognized Liabilities | Gross Amounts Offset in our Condensed Consolidated Balance Sheet | Net Amounts of Liabilities Presented in our Condensed Consolidated Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 0 | $ | 0 | $ | 0 | $ | 14,470 | $ | 0 | $ | 14,470 | |||||||||||||||||||||||||||||||||||||||||||||||
Forward currency contracts | 0 | 0 | 0 | 12,687 | (7,811) | 4,876 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative liabilities | $ | 0 | $ | 0 | $ | 0 | $ | 27,157 | $ | (7,811) | $ | 19,346 |
September 30, 2020 | December 31, 2019 | ||||||||||
Accrued dividends payable | $ | 53,689 | $ | 74,771 | |||||||
Collateral deposited under derivative agreements | 12,780 | 2,930 | |||||||||
Accrued interest payable | 13,013 | 16,089 | |||||||||
Accounts payable and other liabilities | 6,145 | 6,922 | |||||||||
General CECL Allowance on unfunded commitments(1) | 3,595 | 0 | |||||||||
Total | $ | 89,222 | $ | 100,712 |
September 30, 2019 | December 31, 2018 | ||||||
Accrued dividends payable | $ | 74,290 | $ | 69,033 | |||
Collateral deposited under derivative agreements | 170 | 20,000 | |||||
Accrued interest payable | 13,908 | 14,208 | |||||
Accounts payable and other liabilities | 9,863 | 1,505 | |||||
Total | $ | 98,231 | $ | 104,746 |
Type | Restricted Stock | RSUs | Grant Date Fair Value ($ in thousands) | |||||||||||||||||||||||
Outstanding at December 31, 2019 | 25,356 | 2,007,355 | ||||||||||||||||||||||||
Granted | 82,235 | 54,867 | 906 | |||||||||||||||||||||||
Vested | (25,356) | (264) | N/A | |||||||||||||||||||||||
Forfeiture | 0 | (13,587) | N/A | |||||||||||||||||||||||
Outstanding at September 30, 2020 | 82,235 | 2,048,371 |
Type | Restricted Stock | RSUs | Grant Date Fair Value ($ in thousands) | |||||||
Outstanding at December 31, 2018 | 65,697 | 1,852,957 | ||||||||
Granted | 27,245 | — | 500 | |||||||
Vested | (47,586 | ) | (263 | ) | N/A | |||||
Forfeiture | — | (16,451 | ) | N/A | ||||||
Outstanding at September 30, 2019 | 45,356 | 1,836,243 |
Vesting Year | Restricted Stock | RSU | Total Awards | |||||||||||||||||
2020 | 0 | 956,738 | 956,738 | |||||||||||||||||
2021 | 82,235 | 699,903 | 782,138 | |||||||||||||||||
2022 | 0 | 373,441 | 373,441 | |||||||||||||||||
2023 | 0 | 18,289 | 18,289 | |||||||||||||||||
Total | 82,235 | 2,048,371 | 2,130,606 |
Vesting Year | Restricted Stock | RSU | Total Awards | ||||||
2019 | 20,000 | 881,403 | 901,403 | ||||||
2020 | 25,356 | 621,515 | 646,871 | ||||||
2021 | — | 333,325 | 333,325 | ||||||
Total | 45,356 | 1,836,243 | 1,881,599 |
Three months ended | |||
Dividend declared per share of: | September 30, 2019 | June 30, 2019 | March 31, 2019 |
Common Stock | $0.46 | $0.46 | $0.46 |
Series B Preferred Stock | 0.50 | 0.50 | 0.50 |
Series C Preferred Stock | N/A | 0.22 | 0.50 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
Dividend declared per share of: | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||||||||
Common Stock | $0.35 | $0.46 | $1.10 | $1.38 | |||||||||||||||||||||||||||||||
Series B Preferred Stock | 0.50 | 0.50 | 1.50 | 1.50 | |||||||||||||||||||||||||||||||
Series C Preferred Stock | N/A | N/A | N/A | 0.7223 |
Three months ended | |||||||||||||||||||||||||||||||||||
March 31, 2020 | June 30, 2020 | September 30, 2020 | Total | ||||||||||||||||||||||||||||||||
Shares Repurchased | 300,000 | 5,495,976 | 5,038,619 | 10,834,595 | |||||||||||||||||||||||||||||||
Weighted Average Price | $8.12 | $7.96 | $9.01 | $ | 8.45 |
September 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
Cash and cash equivalents | $ | 160,934 | $ | 160,934 | $ | 109,806 | $ | 109,806 | |||||||
Commercial mortgage loans, net | 4,779,501 | 4,828,398 | 3,878,981 | 3,894,947 | |||||||||||
Subordinate loans and other lending assets, net (1) | 1,335,073 | 1,344,035 | 1,048,612 | 1,047,854 | |||||||||||
Secured debt arrangements, net | (2,541,287 | ) | (2,541,287 | ) | (1,897,077 | ) | (1,897,077 | ) | |||||||
Senior secured term loan, net | (488,947 | ) | (499,375 | ) | — | — | |||||||||
2019 Notes | — | — | (34,278 | ) | (35,276 | ) | |||||||||
2022 Notes | (337,126 | ) | (352,331 | ) | (335,291 | ) | (326,025 | ) | |||||||
2023 Notes | (223,463 | ) | (234,313 | ) | (222,431 | ) | (221,964 | ) |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 438,234 | $ | 438,234 | $ | 452,282 | $ | 452,282 | |||||||||||||||||||||||||||
Commercial mortgage loans, net | 5,427,945 | 5,337,301 | 5,326,967 | 5,380,693 | |||||||||||||||||||||||||||||||
Subordinate loans and other lending assets, net(1) | 1,009,092 | 982,961 | 1,048,126 | 1,050,961 | |||||||||||||||||||||||||||||||
Secured debt arrangements, net | (3,465,337) | (3,465,337) | (3,078,366) | (3,078,366) | |||||||||||||||||||||||||||||||
Senior secured term loan, net | (484,191) | (471,531) | (487,961) | (499,988) | |||||||||||||||||||||||||||||||
2022 Notes | (339,695) | (326,867) | (337,755) | (348,060) | |||||||||||||||||||||||||||||||
2023 Notes | (224,916) | (206,126) | (223,818) | (234,600) |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic Earnings | |||||||||||||||
Net Income | $ | 29,089 | $ | 62,217 | $ | 158,271 | $ | 166,996 | |||||||
Less: Preferred dividends | (3,385 | ) | (6,836 | ) | (15,139 | ) | (20,505 | ) | |||||||
Net income available to common stockholders | $ | 25,704 | $ | 55,381 | $ | 143,132 | $ | 146,491 | |||||||
Less: Dividends on participating securities | (847 | ) | (733 | ) | (2,547 | ) | (2,215 | ) | |||||||
Basic Earnings | $ | 24,857 | $ | 54,648 | $ | 140,585 | $ | 144,276 | |||||||
Diluted Earnings | |||||||||||||||
Net Income | $ | 29,089 | $ | 62,217 | $ | 158,271 | $ | 166,996 | |||||||
Less: Preferred dividends | (3,385 | ) | (6,836 | ) | (15,139 | ) | (20,505 | ) | |||||||
Net income available to common stockholders | $ | 25,704 | $ | 55,381 | $ | 143,132 | $ | 146,491 | |||||||
Add: Interest expense on Notes | — | 6,746 | — | 25,607 | |||||||||||
Diluted Earnings | $ | 25,704 | $ | 62,127 | $ | 143,132 | $ | 172,098 | |||||||
Number of Shares: | |||||||||||||||
Basic weighted-average shares of common stock outstanding | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 | |||||||||||
Diluted weighted-average shares of common stock outstanding | 153,531,678 | 153,918,435 | 144,638,237 | 150,424,889 | |||||||||||
Earnings Per Share Attributable to Common Stockholders | |||||||||||||||
Basic | $ | 0.16 | $ | 0.42 | $ | 0.97 | $ | 1.19 | |||||||
Diluted | $ | 0.16 | $ | 0.40 | $ | 0.97 | $ | 1.14 |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Basic Earnings | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 49,338 | $ | 29,089 | $ | (18,303) | $ | 158,271 | |||||||||||||||||||||||||||
Less: Preferred dividends | (3,385) | (3,385) | (10,155) | (15,139) | |||||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 45,953 | $ | 25,704 | $ | (28,458) | $ | 143,132 | |||||||||||||||||||||||||||
Less: Dividends on participating securities | (717) | (847) | (2,238) | (2,547) | |||||||||||||||||||||||||||||||
Basic Earnings | $ | 45,236 | $ | 24,857 | $ | (30,696) | $ | 140,585 | |||||||||||||||||||||||||||
Diluted Earnings | |||||||||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 45,953 | $ | 25,704 | $ | (28,458) | $ | 143,132 | |||||||||||||||||||||||||||
Less: Dividends on participating securities | (717) | 0 | (2,238) | 0 | |||||||||||||||||||||||||||||||
Add: Interest expense on Notes | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Diluted Earnings | $ | 45,236 | $ | 25,704 | $ | (30,696) | $ | 143,132 |
Number of Shares: | |||||||||||||||||||||||
Basic weighted-average shares of common stock outstanding | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | |||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | |||||||||||||||||||
Earnings Per Share Attributable to Common Stockholders | |||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.16 | $ | (0.20) | $ | 0.97 | |||||||||||||||
Diluted | $ | 0.31 | $ | 0.16 | $ | (0.20) | $ | 0.97 |
Description | Amortized Cost | Weighted-Average Coupon (1) | Weighted Average All-in Yield (1)(2) | Secured Debt Arrangements (3) | Cost of Funds | Equity at cost(4) | Description | Amortized Cost | Weighted-Average Coupon (1) | Weighted Average All-in Yield (1)(2) | Secured Debt Arrangements (3) | Cost of Funds | Equity at cost(4) | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans, net | $ | 4,779,501 | 6.2 | % | 6.8 | % | $ | 2,559,318 | 3.9 | % | $ | 2,220,183 | Commercial mortgage loans, net | $ | 5,427,945 | 4.7 | % | 5.2 | % | $ | 3,478,083 | 2.2 | % | $ | 1,949,862 | |||||||||||||||||||||||||||||||||||||
Subordinate loans and other lending assets, net | 1,335,073 | 12.0 | % | 13.2 | % | — | — | 1,335,073 | Subordinate loans and other lending assets, net | 1,009,092 | 10.5 | % | 11.4 | % | — | — | 1,009,092 | |||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted-Average | $ | 6,114,574 | 7.5 | % | 8.2 | % | $ | 2,559,318 | 3.9 | % | $ | 3,555,256 | Total/Weighted-Average | $ | 6,437,037 | 5.6 | % | 6.2 | % | $ | 3,478,083 | 2.2 | % | $ | 2,958,954 |
(1) Weighted-Average Coupon and Weighted-Average All-in Yield are based on the applicable benchmark rates as of September 30, 2020 on the floating rate loans. (2)Weighted-Average All-in Yield includes the amortization of deferred origination fees, loan origination costs and accrual of both extension and exit fees. Weighted-Average All-in Yield excludes the benefit of forward points on currency hedges relating to loans denominated in currencies other than USD. (3) Gross of deferred financing costs of $12.7 million. (4) Represents loan portfolio at amortized cost less secured debt outstanding. |
Commercial Mortgage Loan Portfolio | |||||||
Property Type | Risk Rating | Origination Date | Amortized Cost | Unfunded Commitment | Construction Loan(4) | Fully-extended Maturity | Location |
Urban Retail | 3 | 08/2019 | $315 | — | 09/2024 | Manhattan, NY | |
Hotel | 3 | 09/2016 | 210 | — | 01/2022 | Manhattan, NY | |
Urban Predevelopment | 3 | 04/2017 | 197 | — | 10/2019 | London, UK | |
Industrial | 3 | 01/2019 | 196 | 7 | 02/2024 | Brooklyn, NY | |
Office | 2 | 11/2017 | 189 | 60 | Y | 12/2022 | Manhattan, NY |
Office | 3 | 10/2018 | 185 | 14 | 10/2021 | Manhattan, NY | |
Office | 3 | 06/2019 | 185 | 31 | 11/2026 | Berlin, Germany | |
Urban Predevelopment | 3 | 01/2016 | 183 | — | 09/2021 | Miami, FL | |
Residential-for-sale: inventory | 3 | 03/2018 | 178 | — | 03/2021 | London, UK | |
Office | 3 | 09/2019 | 170 | — | 09/2023 | London, UK | |
Office | 3 | 11/2017 | 164 | — | 01/2023 | Chicago, IL | |
Hotel | 3 | 04/2018 | 151 | 2 | 04/2023 | Honolulu, HI |
Commercial Mortgage Loan Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||
# | Property Type | Risk Rating | Origination Date | Amortized Cost | Unfunded Commitment | Construction Loan | Fully-extended Maturity | Location | ||||||||||||||||||||||||||||||||||||||||||
1 | Urban Retail | 3 | 08/2019 | $317 | $— | 09/2024 | Manhattan, NY | |||||||||||||||||||||||||||||||||||||||||||
2 | Urban Retail | 3 | 12/2019 | 320 | — | 12/2023 | London, UK | |||||||||||||||||||||||||||||||||||||||||||
3 | Hotel | 3 | 10/2019 | 261 | 50 | 08/2024 | Various | |||||||||||||||||||||||||||||||||||||||||||
4 | Healthcare | 3 | 10/2019 | 220 | 29 | 10/2024 | Various | |||||||||||||||||||||||||||||||||||||||||||
5 | Office | 3 | 02/2020 | 216 | — | 02/2025 | London, UK |
6 | Industrial | 3 | 01/2019 | 197 | 7 | 02/2024 | Brooklyn, NY | |||||||||||||||||||
7 | Office | 3 | 06/2019 | 204 | 29 | 11/2026 | Berlin, Germany | |||||||||||||||||||
8 | Office | 3 | 10/2018 | 197 | 3 | 01/2022 | Manhattan, NY | |||||||||||||||||||
9 | Urban Predevelopment (1) | 5 | 01/2016 | 115 | — | 09/2021 | Miami, FL | |||||||||||||||||||
10 | Office | 3 | 09/2019 | 179 | — | 09/2023 | London, UK | |||||||||||||||||||
11 | Office | 3 | 01/2020 | 184 | 103 | 02/2025 | Long Island City, NY | |||||||||||||||||||
12 | Office | 3 | 11/2017 | 151 | — | 01/2023 | Chicago, IL | |||||||||||||||||||
13 | Urban Predevelopment(1) | 5 | 03/2017 | 128 | — | 12/2020 | Brooklyn, NY | |||||||||||||||||||
14 | Hotel | 3 | 04/2018 | 152 | — | 04/2023 | Honolulu, HI | |||||||||||||||||||
15 | Hotel | 3 | 09/2015 | 145 | — | 06/2024 | Manhattan, NY | |||||||||||||||||||
16 | Hotel | 3 | 05/2018 | 140 | — | 06/2023 | Miami, FL | |||||||||||||||||||
17 | Hotel | 3 | 08/2019 | 139 | — | 08/2024 | Puglia, Italy | |||||||||||||||||||
18 | Office | 3 | 01/2018 | 135 | 56 | 01/2022 | Renton, WA | |||||||||||||||||||
19 | Retail center(1) | 5 | 11/2014 | 105 | — | 09/2021 | Cincinnati, OH | |||||||||||||||||||
20 | Office | 3 | 10/2018 | 135 | 51 | Y | 10/2023 | Manhattan, NY | ||||||||||||||||||
21 | Residential-for-sale: construction | 3 | 12/2019 | 135 | 15 | Y | 01/2023 | Boston, MA | ||||||||||||||||||
22 | Hotel | 3 | 03/2017 | 105 | — | 03/2022 | Atlanta, GA | |||||||||||||||||||
23 | Hotel | 3 | 11/2018 | 100 | — | 12/2023 | Vail, CO | |||||||||||||||||||
24 | Hotel | 3 | 12/2017 | 91 | — | 12/2022 | Manhattan, NY | |||||||||||||||||||
25 | Office | 3 | 03/2018 | 92 | — | 04/2023 | Chicago, IL | |||||||||||||||||||
26 | Residential-for-sale: inventory | 3 | 12/2019 | 73 | — | 07/2021 | Manhattan, NY | |||||||||||||||||||
27 | Office | 3 | 04/2019 | 97 | 62 | Y | 09/2025 | Culver City, CA | ||||||||||||||||||
28 | Office | 3 | 12/2017 | 87 | 37 | 07/2022 | London, UK | |||||||||||||||||||
29 | Mixed Use | 3 | 12/2019 | 75 | 1 | 12/2024 | London, UK | |||||||||||||||||||
30 | Residential-for-sale: construction | 3 | 12/2018 | 71 | 107 | Y | 12/2023 | Manhattan, NY | ||||||||||||||||||
31 | Residential-for-sale: construction | 3 | 10/2015 | 69 | — | 08/2021 | Manhattan, NY | |||||||||||||||||||
32 | Multifamily | 3 | 04/2014 | 66 | — | 07/2023 | Various | |||||||||||||||||||
33 | Hotel | 3 | 08/2019 | 67 | — | 09/2022 | Manhattan, NY | |||||||||||||||||||
34 | Hotel | 3 | 04/2018 | 64 | — | 05/2023 | Scottsdale, AZ | |||||||||||||||||||
35 | Urban Predevelopment | 3 | 12/2016 | 52 | — | 06/2022 | Los Angeles, CA | |||||||||||||||||||
36 | Hotel | 3 | 09/2019 | 60 | — | 10/2024 | Miami, FL | |||||||||||||||||||
37 | Residential-for-sale: construction | 3 | 01/2018 | 68 | 12 | Y | 01/2023 | Manhattan, NY | ||||||||||||||||||
38 | Hotel | 3 | 12/2019 | 59 | — | 01/2025 | Tucson, AZ | |||||||||||||||||||
39 | Multifamily | 3 | 11/2014 | 54 | — | 11/2021 | Various | |||||||||||||||||||
40 | Hotel | 3 | 05/2019 | 52 | — | 06/2024 | Chicago, IL | |||||||||||||||||||
41 | Multifamily | 3 | 02/2020 | 50 | 1 | 03/2024 | Cleveland, OH | |||||||||||||||||||
42 | Hotel | 3 | 12/2015 | 42 | — | 08/2024 | St. Thomas, USVI | |||||||||||||||||||
43 | Residential-for-sale: construction | 3 | 12/2018 | 65 | 38 | Y | 01/2024 | Hallandale Beach, FL | ||||||||||||||||||
44 | Hotel(1) | 5 | 02/2018 | 29 | — | 03/2023 | Pittsburgh, PA | |||||||||||||||||||
45 | Office | 3 | 12/2019 | 34 | 3 | 12/2022 | Edinburgh, Scotland | |||||||||||||||||||
46 | Residential-for-sale: inventory | 3 | 05/2018 | 24 | — | 03/2021 | Manhattan, NY | |||||||||||||||||||
47 | Residential-for-sale: inventory | 3 | 06/2018 | 13 | — | 07/2021 | Manhattan, NY | |||||||||||||||||||
48 | Residential-for-sale: inventory(1) | 5 | 02/2014 | 3 | — | 04/2021 | Bethesda, MD | |||||||||||||||||||
49 | Mixed Use | 3 | 12/2019 | 11 | 789 | Y | 06/2025 | London, UK | ||||||||||||||||||
General CECL Allowance | (20) | |||||||||||||||||||||||||
Sub total / Weighted-Average Subordinate Loans and Other Lending Assets | 3.1 | $5,428 | $1,393 | 3.0 Years |
Subordinate Loan and Other Lending Asset Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||
# | Property Type | Risk Rating | Origination Date | Amortized Cost | Unfunded Commitment | Construction Loan | Fully-extended Maturity | Location | ||||||||||||||||||||||||||||||||||||||||||
1 | Residential-for-sale: construction (2) | 3 | 06/2015 | $224 | — | Y | 12/2020 | Manhattan, NY | ||||||||||||||||||||||||||||||||||||||||||
2 | Residential-for-sale: construction | 3 | 12/2017 | 108 | 11 | Y | 06/2022 | Manhattan, NY |
Urban Predevelopment | 3 | 03/2017 | 151 | 14 | 12/2020 | Brooklyn, NY | |
Hotel (1) | 3 | 09/2015 | 140 | — | 06/2023 | Manhattan, NY | |
Hotel | 3 | 05/2018 | 139 | — | 06/2023 | Miami, FL | |
Hotel | 3 | 08/2019 | 130 | — | 08/2024 | Puglia, Italy | |
Retail Center (3) | 5 | 11/2014 | 126 | — | 09/2020 | Cincinnati, OH | |
Office | 3 | 01/2018 | 120 | 68 | 01/2022 | Renton, WA | |
Office | 3 | 10/2018 | 107 | 79 | Y | 10/2023 | Manhattan, NY |
Hotel | 3 | 03/2017 | 105 | — | 03/2022 | Atlanta, GA | |
Hotel | 3 | 11/2018 | 99 | — | 12/2023 | Vail, CO | |
Hotel | 3 | 12/2017 | 89 | — | 12/2022 | Manhattan, NY | |
Hotel | 3 | 07/2018 | 87 | — | 08/2021 | Detroit, MI | |
Residential-for-sale: construction | 3 | 05/2018 | 79 | 4 | Y | 06/2020 | Brooklyn, NY |
Office | 3 | 12/2017 | 73 | 44 | 07/2022 | London, UK | |
Urban Predevelopment | 3 | 12/2016 | 73 | — | 12/2020 | Los Angeles, CA | |
Multifamily | 3 | 04/2014 | 71 | — | 07/2023 | Various | |
Office | 3 | 03/2018 | 71 | 17 | 04/2023 | Chicago, IL | |
Residential-for-sale: construction | 3 | 12/2018 | 70 | 107 | Y | 12/2023 | Manhattan, NY |
Hotel | 3 | 08/2019 | 67 | — | 09/2022 | Manhattan, NY | |
Hotel | 3 | 04/2018 | 63 | — | 05/2023 | Scottsdale, AZ | |
Hotel | 3 | 09/2019 | 60 | — | 10/2024 | Miami, FL | |
Residential-for-sale: inventory | 3 | 06/2018 | 57 | — | 06/2020 | Manhattan, NY | |
Other | 3 | 04/2019 | 55 | 104 | Y | 09/2025 | Culver City, CA |
Multifamily | 3 | 11/2014 | 54 | — | 11/2021 | Various | |
Multifamily | 3 | 06/2018 | 53 | — | 06/2020 | London, UK | |
Hotel | 3 | 05/2019 | 52 | — | 06/2024 | Chicago, IL | |
Residential-for-sale: construction | 3 | 01/2018 | 48 | 31 | Y | 01/2023 | Manhattan, NY |
Hotel | 3 | 12/2015 | 42 | — | 08/2024 | St. Thomas, USVI | |
Multifamily | 3 | 10/2017 | 40 | — | 10/2022 | London, UK | |
Hotel | 3 | 02/2018 | 38 | — | 03/2023 | Pittsburgh, PA | |
Residential-for-sale: inventory | 2 | 05/2018 | 37 | — | 04/2021 | Manhattan, NY | |
Office | 3 | 04/2019 | 22 | 49 | Y | 08/2022 | Birmingham, UK |
Residential-for-sale: construction | 3 | 12/2018 | 18 | 84 | Y | 01/2024 | Hallandale Beach, FL |
Residential-for-sale: inventory (3) | 5 | 02/2014 | 16 | — | 04/2020 | Bethesda, MD | |
Residential-for-sale: construction | 3 | 03/2018 | 5 | 109 | Y | 03/2023 | San Francisco, CA |
Office | 3 | 08/2018 | — | 188 | Y | 12/2022 | London, UK |
Sub total / Weighted-Average Commercial Mortgage Loans | 3.0 | $4,780 | $1,012 | 12% | 3.1 Years |
Subordinate Loan and Other Lending Asset Portfolio | |||||||
Property Type | Risk Rating | Origination Date | Amortized Cost | Unfunded Commitment | Construction Loan(4) | Fully-extended Maturity | Location |
Residential-for-sale: construction (2) | 3 | 06/2015 | $203 | — | Y | 02/2021 | Manhattan, NY |
Urban Retail | 3 | 08/2019 | 121 | — | 09/2024 | Manhattan, NY | |
Office | 3 | 01/2019 | 99 | — | 12/2025 | Manhattan, NY | |
Residential-for-sale: construction | 3 | 12/2017 | 93 | 19 | Y | 06/2022 | Manhattan, NY |
Healthcare | 3 | 01/2019 | 93 | — | 01/2024 | Various |
Other | 2 | 09/2017 | 72 | — | 09/2022 | Various | |
Multifamily | 3 | 10/2015 | 68 | — | 11/2019 | Manhattan, NY | |
Residential-for-sale: construction | 3 | 12/2017 | 65 | — | Y | 04/2023 | Los Angeles, CA |
Healthcare | 3 | 07/2019 | 51 | — | 06/2024 | Various | |
Residential-for-sale: construction (2) | 3 | 11/2017 | 48 | — | Y | 02/2021 | Manhattan, NY |
Healthcare | 2 | 01/2015 | 46 | — | 12/2019 | Various | |
Mixed Use | 3 | 01/2017 | 42 | — | 02/2027 | Cleveland, OH | |
Residential-for-sale: inventory | 2 | 10/2016 | 36 | — | 10/2020 | Manhattan, NY | |
Mixed Use | 3 | 02/2019 | 36 | — | Y | 12/2022 | London, UK |
Industrial | 2 | 05/2013 | 32 | — | 05/2023 | Various | |
Urban Retail | 3 | 08/2019 | 30 | — | 09/2024 | Manhattan, NY | |
Residential-for-sale: inventory | 3 | 06/2017 | 25 | — | 12/2020 | Manhattan, NY | |
Hotel | 2 | 06/2015 | 25 | — | 07/2025 | Phoenix, AZ | |
Hotel | 3 | 06/2015 | 20 | — | 12/2022 | Washington, DC | |
Hotel | 3 | 06/2018 | 20 | — | 06/2023 | Las Vegas, NV | |
Multifamily | 3 | 05/2018 | 20 | — | 05/2028 | Cleveland, OH | |
Hotel | 2 | 02/2015 | 20 | — | 01/2020 | Burbank, CA | |
Mixed Use | 3 | 12/2018 | 18 | 33 | Y | 12/2023 | Brooklyn, NY |
Hotel (1) | 3 | 09/2015 | 15 | 9 | 06/2023 | Manhattan, NY | |
Office | 2 | 07/2013 | 14 | — | 07/2022 | Manhattan, NY | |
Hotel | 3 | 05/2017 | 8 | — | 06/2027 | Anaheim, CA | |
Office | 3 | 08/2017 | 8 | — | 09/2024 | Troy, MI | |
Mixed Use | 3 | 07/2012 | 7 | — | 08/2022 | Chapel Hill, NC | |
Sub total / Weighted-Average Subordinate Loans and Other Lending Assets | 2.8 | $1,335 | $61 | 35% | 3.3 Years | ||
Total / Weighted-Average Loan Portfolio | 3.0 | $6,115 | $1,073 | 17% | 3.1 Years |
3 | Office | 3 | 01/2019 | 100 | — | 12/2025 | Manhattan, NY | |||||||||||||||||||
4 | Healthcare(3) | 3 | 01/2019 | 76 | — | 01/2024 | Various | |||||||||||||||||||
5 | Residential-for-sale: construction (2) | 3 | 11/2017 | 85 | — | Y | 12/2020 | Manhattan, NY | ||||||||||||||||||
6 | Residential-for-sale: construction | 3 | 12/2017 | 72 | — | Y | 04/2023 | Los Angeles, CA | ||||||||||||||||||
7 | Healthcare(4) | 3 | 07/2019 | 51 | — | 06/2024 | Various | |||||||||||||||||||
8 | Mixed Use | 3 | 01/2017 | 42 | — | 02/2027 | Cleveland, OH | |||||||||||||||||||
9 | Residential-for-sale: inventory | 3 | 10/2016 | 36 | — | 10/2020 | Manhattan, NY | |||||||||||||||||||
10 | Mixed Use | 3 | 02/2019 | 38 | — | Y | 12/2022 | London, UK | ||||||||||||||||||
11 | Industrial | 2 | 05/2013 | 32 | — | 05/2023 | Various | |||||||||||||||||||
12 | Mixed Use | 3 | 12/2018 | 29 | 22 | Y | 12/2023 | Brooklyn, NY | ||||||||||||||||||
13 | Hotel | 3 | 06/2015 | 24 | — | 07/2025 | Phoenix, AZ | |||||||||||||||||||
14 | Hotel | 3 | 06/2018 | 20 | — | 06/2023 | Las Vegas, NV | |||||||||||||||||||
15 | Multifamily | 3 | 05/2018 | 19 | — | 05/2028 | Cleveland, OH | |||||||||||||||||||
16 | Healthcare(3)(4) | 3 | 02/2019 | 17 | — | 01/2034 | Various | |||||||||||||||||||
17 | Office | 3 | 07/2013 | 14 | — | 07/2022 | Manhattan, NY | |||||||||||||||||||
18 | Hotel(1) | 5 | 06/2015 | 18 | — | 12/2022 | Washington, DC | |||||||||||||||||||
19 | Hotel(1) | 5 | 05/2017 | 9 | — | 06/2027 | Anaheim, CA | |||||||||||||||||||
20 | Office | 3 | 08/2017 | 7 | — | 09/2024 | Troy, MI | |||||||||||||||||||
21 | Mixed Use | 3 | 07/2012 | 7 | — | 08/2022 | Chapel Hill, NC | |||||||||||||||||||
General CECL Allowance | (19) | |||||||||||||||||||||||||
Sub total / Weighted-Average Subordinate Loans and Other Lending Assets | 3.0 | $1,009 | $33 | 2.5 Years | ||||||||||||||||||||||
Total / Weighted-Average Loan Portfolio | 3.1 | $6,437 | $1,426 | 2.9 Years |
Property Type | Security | Location | Date of Origination | First Date of Loss | Maximum Principal Funded | Amortized Cost | Loss | Type | ||||||
Retail Center | Mortgage | Cincinnati, OH | 11/2014 | 12/2018 | $ | 171,215 | $ | 126,068 | $ | 47,000 | Unrealized | |||
Residential-for-sale: inventory | Mortgage | Bethesda, MD | 2/2014 | 6/2017 | 80,000 | 15,695 | 13,000 | Unrealized | ||||||
Multifamily | Mortgage | Williston, ND | 11/2014 | 6/2016 | 58,000 | — | 12,513 | Realized | ||||||
Total | $ | 309,215 | $ | 141,763 | $ | 72,513 |
Realized and Unrealized Loan Losses: | $ | 72,513 | |
as a % of total assets | 1.14 | % | |
as a % of commitments since inception | 0.57 | % |
Average month-end balances for the nine months ended September 30, 2020 | ||||||||||||||||||||
Description | Assets | Related debt | ||||||||||||||||||
Commercial mortgage loans, net | $ | 5,635,603 | $ | 3,399,455 | ||||||||||||||||
Subordinate loans and other lending assets, net | 1,048,555 | — |
Average month-end balances for the nine months ended September 30, 2019 | ||||||||
Description | Assets | Related debt | ||||||
Commercial mortgage loans, net | $ | 4,227,591 | $ | 2,109,904 | ||||
Subordinate loans and other lending assets, net | 1,251,608 | — |
Three months ended September 30, | 2019 vs 2018 | Nine months ended September 30, | 2019 vs. 2018 | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net interest income: | |||||||||||||||||||||||
Interest income from commercial mortgage loans | $ | 81,136 | $ | 71,179 | $ | 9,957 | $ | 236,880 | $ | 188,434 | $ | 48,446 | |||||||||||
Interest income from subordinate loans and other lending assets | 43,421 | 37,308 | 6,113 | 125,303 | 105,236 | 20,067 | |||||||||||||||||
Interest expense | (39,341 | ) | (31,007 | ) | (8,334 | ) | (109,147 | ) | (82,184 | ) | (26,963 | ) | |||||||||||
Net interest income | 85,216 | 77,480 | 7,736 | 253,036 | 211,486 | 41,550 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
General and administrative expenses | (5,839 | ) | (5,843 | ) | 4 | (18,564 | ) | (16,493 | ) | (2,071 | ) | ||||||||||||
Management fees to related party | (10,434 | ) | (9,515 | ) | (919 | ) | (30,306 | ) | (26,620 | ) | (3,686 | ) | |||||||||||
Total operating expenses | (16,273 | ) | (15,358 | ) | (915 | ) | (48,870 | ) | (43,113 | ) | (5,757 | ) | |||||||||||
Other income | 429 | 427 | 2 | 1,431 | 973 | 458 | |||||||||||||||||
Provision for loan losses and impairments, net of reversals | (35,000 | ) | — | (35,000 | ) | (20,000 | ) | (5,000 | ) | (15,000 | ) | ||||||||||||
Realized loss on investments | — | — | — | (12,513 | ) | — | (12,513 | ) | |||||||||||||||
Foreign currency loss | (19,129 | ) | (4,050 | ) | (15,079 | ) | (20,012 | ) | (23,574 | ) | 3,562 | ||||||||||||
Loss on early extinguishment of debt | — | (2,573 | ) | 2,573 | — | (2,573 | ) | 2,573 | |||||||||||||||
Gain on foreign currency forwards | 24,153 | 6,291 | 17,862 | 28,619 | 28,797 | (178 | ) | ||||||||||||||||
Unrealized loss on interest rate swap | (10,307 | ) | — | (10,307 | ) | (23,420 | ) | — | (23,420 | ) | |||||||||||||
Net income | $ | 29,089 | $ | 62,217 | $ | (33,128 | ) | $ | 158,271 | $ | 166,996 | $ | (8,725 | ) |
Three months ended September 30, | 2020 vs 2019 | Nine months ended September 30, | 2020 vs. 2019 | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Net interest income: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest income from commercial mortgage loans | $ | 74,522 | $ | 81,136 | $ | (6,614) | $ | 232,018 | $ | 236,880 | $ | (4,862) | |||||||||||||||||||||||||||||||||||
Interest income from subordinate loans and other lending assets | 28,857 | 43,421 | (14,564) | 95,491 | 125,303 | (29,812) | |||||||||||||||||||||||||||||||||||||||||
Interest expense | (34,824) | (39,341) | 4,517 | (113,527) | (109,147) | (4,380) | |||||||||||||||||||||||||||||||||||||||||
Net interest income | 68,555 | 85,216 | (16,661) | 213,982 | 253,036 | (39,054) | |||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | (6,624) | (5,839) | (785) | (19,580) | (18,564) | (1,016) | |||||||||||||||||||||||||||||||||||||||||
Management fees to related party | (9,927) | (10,434) | 507 | (30,152) | (30,306) | 154 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | (16,551) | (16,273) | (278) | (49,732) | (48,870) | (862) | |||||||||||||||||||||||||||||||||||||||||
Other income | 128 | 429 | (301) | 1,479 | 1,431 | 48 | |||||||||||||||||||||||||||||||||||||||||
Realized loss on investments | (1,037) | — | (1,037) | (17,442) | (12,513) | (4,929) | |||||||||||||||||||||||||||||||||||||||||
Reversal of (provision for) loan losses - Specific CECL Allowance | 550 | (35,000) | 35,550 | (139,950) | (20,000) | (119,950) | |||||||||||||||||||||||||||||||||||||||||
Reversal of (provision for) loan losses - General CECL Allowance | 5,792 | — | 5,792 | (12,004) | — | (12,004) | |||||||||||||||||||||||||||||||||||||||||
Foreign currency translation gain (loss) | 27,002 | (19,129) | 46,131 | (8,388) | (20,012) | 11,624 | |||||||||||||||||||||||||||||||||||||||||
Gain (loss) on foreign currency forwards | (34,537) | 24,153 | (58,690) | 32,959 | 28,619 | 4,340 | |||||||||||||||||||||||||||||||||||||||||
Loss on interest rate hedging instruments | (564) | (10,307) | 9,743 | (39,207) | (23,420) | (15,787) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 49,338 | $ | 29,089 | $ | 20,249 | $ | (18,303) | $ | 158,271 | $ | (176,574) |
Three months ended | Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||
Dividend declared per share of: | September 30, 2019 | June 30, 2019 | March 31, 2019 | Dividend declared per share of: | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||||||||||||
Common Stock | $0.46 | $0.46 | $0.46 | Common Stock | $0.35 | $0.46 | $1.10 | $1.38 | ||||||||||||||||||||||||||||||||
Series B Preferred Stock | 0.50 | 0.50 | 0.50 | Series B Preferred Stock | 0.50 | 0.50 | 1.50 | 1.50 | ||||||||||||||||||||||||||||||||
Series C Preferred Stock | N/A | 0.22 | 0.50 | Series C Preferred Stock | N/A | N/A | N/A | 0.7223 |
September 30, 2020 | December 31, 2019 | ||||||||||
Debt to Equity Ratio (1) | 1.7 | 1.4 |
Borrowings outstanding | Fully-Extended Maturity(1) | |||||||
Total/Weighted-Average GBP | $670,024 | January 2024 | ||||||
Total/Weighted-Average EUR | 143,568 | August 2021(2) | ||||||
Total/Weighted-Average Securitization | $813,592 | March 2024 |
Less than 1 year (1) | 1 to 3 years (1) | 3 to 5 years (1) | More than 5 years (1) | Total | |||||||||||||||
Secured debt arrangements (2) | $ | 563,701 | $ | 1,439,162 | $ | 1,604,338 | $ | — | $ | 3,607,201 | |||||||||
Senior secured term loan(3) | 29,133 | 57,408 | 56,502 | 544,381 | 687,424 | ||||||||||||||
Convertible senior notes | 28,750 | 400,922 | 243,393 | — | 673,065 | ||||||||||||||
Unfunded loan commitments (4) | 667,447 | 385,012 | 20,964 | — | 1,073,423 | ||||||||||||||
Total | $ | 1,289,031 | $ | 2,282,504 | $ | 1,925,197 | $ | 544,381 | $ | 6,041,113 |
Less than 1 year (1) | 1 to 2 years(1) | 2 to 3 years (1) | 3 to 5 years (1) | More than 5 years (1) | Total | ||||||||||||||||||||||||||||||
Secured debt arrangements(1)(2) | $ | 575,514 | $ | 924,928 | $ | 904,842 | $ | 1,248,750 | $ | — | $ | 3,654,034 | |||||||||||||||||||||||
Senior secured term loan(2) | 19,465 | 19,317 | 19,170 | 37,938 | 477,267 | 573,157 | |||||||||||||||||||||||||||||
Convertible senior notes | 28,750 | 372,172 | 12,363 | 231,030 | — | 644,315 | |||||||||||||||||||||||||||||
Unfunded loan commitments (3) | 573,344 | 429,516 | 302,134 | 66,328 | — | 1,371,322 | |||||||||||||||||||||||||||||
Total | $ | 1,197,073 | $ | 1,745,933 | $ | 1,238,509 | $ | 1,584,046 | $ | 477,267 | $ | 6,242,828 |
Three months ended September 30, 2019 (1) | Nine months ended September 30, 2019 (1) | ||||
Weighted-Averages | Shares | Shares | |||
Weighted-average diluted shares - GAAP | 153,531,678 | 144,638,237 | |||
Unvested RSUs | 1,839,631 | 1,845,086 | |||
Weighted-average diluted shares - Operating Earnings | 155,371,309 | 146,483,323 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Averages | Shares | Shares | Shares | Shares | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average basic and diluted shares - GAAP | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | ||||||||||||||||||||||||||||||||||||||||||||||
Unvested RSUs | 2,051,311 | 1,839,631 | 2,028,573 | 1,845,086 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average diluted shares - Operating Earnings | 148,663,624 | 155,371,309 | 152,708,346 | 146,483,323 |
Three months ended September 30, 2018 | Nine months ended September 30, 2018 | ||||||||||||||||||
Weighted-Averages | Face | Price | Shares | Face | Price | Shares | |||||||||||||
Weighted-average diluted shares - GAAP | 153,918,435 | 150,424,889 | |||||||||||||||||
2019 Notes (1) | $ | 127,925 | $17.28 | (7,402,122 | ) | $ | 13,170 | $17.17 | (12,220,679 | ) | |||||||||
2022 Notes | $ | 345,000 | $19.91 | (17,327,970 | ) | $ | 345,000 | $19.91 | (17,327,970 | ) | |||||||||
2023 Notes | $ | — | N/A | — | $ | — | N/A | — | |||||||||||
Unvested RSUs | — | — | 1,593,070 | — | — | 1,617,398 | |||||||||||||
Weighted-average diluted shares - Operating Earnings | 130,781,413 | 122,493,638 |
Computation of Share Count for Operating Earnings | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Basic weighted-average shares of common stock outstanding | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 | ||||||||
Weighted-average unvested RSUs | 1,839,631 | 1,593,070 | 1,845,086 | 1,617,398 | ||||||||
Weighted-average diluted shares - Operating Earnings | 155,371,309 | 130,781,413 | 146,483,323 | 122,493,638 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 45,953 | $ | 25,704 | $ | (28,458) | $ | 143,132 | |||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||
Equity-based compensation expense | 4,212 | 3,889 | 12,726 | 12,084 | |||||||||||||||||||||||||||||||
Unrealized (gain) loss on interest rate swap | — | 10,307 | (14,470) | 23,420 | |||||||||||||||||||||||||||||||
(Gain) loss on currency forwards | 34,537 | (24,153) | (32,959) | (28,619) | |||||||||||||||||||||||||||||||
Foreign currency (gain) loss, net | (27,002) | 19,129 | 8,388 | 20,012 | |||||||||||||||||||||||||||||||
Unrealized (gain) loss on interest rate cap | 564 | — | (174) | — | |||||||||||||||||||||||||||||||
Realized gains (losses) relating to interest income on foreign currency hedges, net | (90) | 870 | 1,254 | 1,614 | |||||||||||||||||||||||||||||||
Realized gains relating to forward points on foreign currency hedges, net | 244 | 1,076 | 3,733 | 3,552 | |||||||||||||||||||||||||||||||
Amortization of the convertible senior notes related to equity reclassification | 777 | 732 | 2,296 | 2,362 | |||||||||||||||||||||||||||||||
Provision for (reversal of) loan losses | (6,342) | 35,000 | 151,954 | 20,000 | |||||||||||||||||||||||||||||||
Total adjustments: | 6,900 | 46,850 | 132,748 | 54,425 | |||||||||||||||||||||||||||||||
Operating Earnings | $ | 52,853 | $ | 72,554 | $ | 104,290 | $ | 197,557 | |||||||||||||||||||||||||||
Realized loss on investments | 1,037 | — | 17,442 | 12,513 | |||||||||||||||||||||||||||||||
Realized loss on interest rate swap | — | — | 53,851 | — | |||||||||||||||||||||||||||||||
Operating Earnings excluding realized loss on investments and realized loss on interest rate swap | $ | 53,890 | $ | 72,554 | $ | 175,583 | $ | 210,070 | |||||||||||||||||||||||||||
Diluted Operating Earnings per share of common stock | $ | 0.36 | $ | 0.47 | $ | 0.68 | $ | 1.35 | |||||||||||||||||||||||||||
Diluted Operating Earnings excluding realized loss on investments and realized loss on interest rate swap | $ | 0.36 | $ | 0.47 | $ | 1.15 | $ | 1.43 | |||||||||||||||||||||||||||
Basic weighted-average shares of common stock outstanding | 146,612,313 | 153,531,678 | 150,679,773 | 144,638,237 | |||||||||||||||||||||||||||||||
Weighted-average diluted shares - Operating Earnings | 148,663,624 | 155,371,309 | 152,708,346 | 146,483,323 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income available to common stockholders | $ | 25,704 | $ | 55,381 | $ | 143,132 | $ | 146,491 | |||||||
Adjustments: | |||||||||||||||
Equity-based compensation expense | 3,889 | 4,048 | 12,084 | 11,404 | |||||||||||
Unrealized loss on interest rate swap | 10,307 | — | 23,420 | — | |||||||||||
Gain on currency forwards | (24,153 | ) | (6,291 | ) | (28,619 | ) | (28,797 | ) | |||||||
Foreign currency loss, net | 19,129 | 4,050 | 20,012 | 23,574 | |||||||||||
Net realized gains (losses) relating to interest income on foreign currency hedges, net (1) | 870 | 421 | 1,614 | (89 | ) | ||||||||||
Net realized gains relating to forward points on foreign currency hedges, net | 1,076 | 257 | 3,552 | 332 | |||||||||||
Amortization of the convertible senior notes related to equity reclassification | 732 | 728 | 2,362 | 3,024 | |||||||||||
Provision for loan losses and impairments, net of reversals | 35,000 | — | 20,000 | 5,000 | |||||||||||
Total adjustments: | 46,850 | 3,213 | 54,425 | 14,448 | |||||||||||
Operating Earnings | $ | 72,554 | $ | 58,594 | $ | 197,557 | $ | 160,939 | |||||||
Realized loss on investments | — | — | 12,513 | — | |||||||||||
Loss on early extinguishment of debt | — | 2,573 | — | 2,573 | |||||||||||
Operating Earnings excluding realized loss on investments and loss on early extinguishment of debt | $ | 72,554 | $ | 61,167 | $ | 210,070 | $ | 163,512 | |||||||
Diluted Operating Earnings per share of common stock (2) | $ | 0.47 | $ | 0.45 | $ | 1.35 | $ | 1.31 | |||||||
Diluted Operating Earnings excluding realized loss on investments and loss on early extinguishment of debt | $ | 0.47 | $ | 0.47 | $ | 1.43 | $ | 1.33 | |||||||
Basic weighted-average shares of common stock outstanding | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 | |||||||||||
Weighted-average diluted shares - Operating Earnings | 155,371,309 | 130,781,413 | 146,483,323 | 122,493,638 |
September 30, 2020 | December 31, 2019 | ||||||||||
Stockholders' Equity | $ | 2,319,281 | $ | 2,629,975 | |||||||
Series B Preferred Stock (Liquidation Preference) | (169,260) | (169,260) | |||||||||
Common Stockholders' Equity | $ | 2,150,021 | $ | 2,460,715 | |||||||
Common Stock | 143,288,347 | 153,537,296 | |||||||||
Book value per share | $ | 15.00 | $ | 16.03 |
September 30, 2019 | December 31, 2018 | ||||||
Stockholders' Equity | $ | 2,629,510 | $ | 2,509,747 | |||
Series B Preferred Stock (Liquidation Preference) | (169,260 | ) | (169,260 | ) | |||
Series C Preferred Stock (Liquidation Preference) | — | (172,500 | ) | ||||
Common Stockholders' Equity | $ | 2,460,250 | $ | 2,167,987 | |||
Common Stock | 153,531,597 | 133,853,565 | |||||
Book value per share | $ | 16.02 | $ | 16.20 |
Book value per share | |||||
Book value per share at December 31, 2019 | $ | 16.03 | |||
Net unrealized gain on currency hedges | 0.15 | ||||
Repurchase of common stock | 0.45 | ||||
Decrease in fair value on interest rate swap | (0.27) | ||||
Vesting and delivery of RSUs | (0.07) | ||||
Other | (0.01) | ||||
Book value per share at September 30, 2020 prior to CECL Allowances | $ | 16.28 | |||
Specific CECL Allowance | $ | (0.98) | |||
Book value per share at September 30, 2020 prior to General CECL Allowance | $ | 15.30 | |||
General CECL Allowance | $ | (0.30) | |||
Book value per share at September 30, 2020 | $ | 15.00 |
Book value per share | |||
Book value per share at December 31, 2018 | $ | 16.20 | |
Vesting and issuance of common stock under the LTIPs | (0.09 | ) | |
Shares issued related to the conversion of the 2019 Notes | 0.01 | ||
Other | 0.01 | ||
Book value per share at March 31, 2019 | $ | 16.13 | |
Common stock offering, net of subsequent dividend | 0.20 | ||
Reversal of loan losses and impairments | 0.02 | ||
Gain on foreign currency forwards, net | 0.02 | ||
Unrealized loss on interest rate swap | (0.08 | ) | |
Other | 0.01 | ||
Book value per share at June 30, 2019 | $ | 16.30 | |
Provision for loan losses and impairments | (0.22 | ) | |
Unrealized loss on interest rate swap | (0.07 | ) | |
Other | 0.01 | ||
Book value per share at September 30, 2019 | $ | 16.02 |
Book value per share | |||
Book value per share at December 31, 2018 | $ | 16.20 | |
Provision for loan losses and impairments, net of reversal | (0.20 | ) | |
Unrealized loss on interest rate swap | (0.15 | ) | |
Vesting and issuance of common stock under the LTIPs | (0.09 | ) | |
Common stock offering, net of subsequent dividend | 0.20 | ||
Other | 0.03 | ||
Gain on foreign currency forwards, net | 0.02 | ||
Shares issued related to the conversion of the 2019 Notes | 0.01 | ||
Book value per share at September 30, 2019 | $ | 16.02 |
50 basis point increase | 50 basis point decrease | 50 basis point increase | 50 basis point decrease | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency | Net floating rate assets subject to interest rate sensitivity | Increase to net interest income (1)(2) | Increase to net interest income (per share) (1)(2) | Decrease to net interest income (1)(2) | Decrease to net interest income (per share) (1)(2) | Currency | Net floating rate assets subject to interest rate sensitivity | Increase (Decrease) to net interest income (1)(2) | Decrease to net interest income (per share) (1)(2) | Increase (Decrease) to net interest income (1)(2) | Increase to net interest income (per share) (1)(2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
USD | $ | 2,423,929 | $ | 10,337 | $ | 0.07 | $ | (5,284 | ) | $ | (0.03 | ) | USD | $ | 1,036,853 | $ | (10,867) | $ | (0.08) | $ | 3,127 | $ | 0.02 | |||||||||||||||||||||||||||||||||||||||||
GBP | 479,516 | 2,377 | 0.01 | (1,521 | ) | (0.01 | ) | GBP | 428,213 | (58) | — | 69 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
EUR | 168,219 | 100 | — | — | — | EUR | 307,899 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total: | $ | 3,071,664 | $ | 12,814 | $ | 0.08 | $ | (6,805 | ) | $ | (0.04 | ) | Total: | $ | 1,772,965 | $ | (10,925) | $ | (0.08) | $ | 3,196 | $ | 0.02 |
Period | Total Number of Shares Purchased(1) | Weighted Average Price Paid per Share | Total Number of Shares of Common Stock Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
July 2020 | 688,762 | $ | 8.93 | 688,762 | $ | 97,557 | |||||||||||||||||
August 2020 | 1,529,015 | 9.21 | 1,529,015 | 83,443 | |||||||||||||||||||
September 2020 | 2,820,842 | 8.93 | 2,820,842 | 58,199 | |||||||||||||||||||
Total | 5,038,619 | $ | 9.01 | 5,038,619 | $ | 58,199 |
3.1 | |||||||||||
3.2 | |||||||||||
3.3 | |||||||||||
4.1 | |||||||||||
4.2 | |||||||||||
4.3 | |||||||||||
4.4 | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1* | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002. Officer and Principal Financial Officer pursuant to Section 906 of 18 U.S.C. Section 1350 as adopted pursuant to the Sarbanes-Oxley Act of 2002. | ||||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | ||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | ||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase | ||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase |
Cover Page Interactive Data File (embedded with the Inline XBRL document) |
* | Filed herewith. |
APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. | ||||||||||||||
October 26, 2020 | ||||||||||||||
By: | ||||||||||||||
/s/ Stuart A. Rothstein | ||||||||||||||
Stuart A. Rothstein | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
By: | /s/ Jai Agarwal | |||||||||||||
Jai Agarwal | ||||||||||||||
Chief Financial Officer, Treasurer and Secretary | ||||||||||||||
(Principal Financial Officer and Principal Accounting Officer) |