Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 21, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BXMT | |
Entity Registrant Name | BLACKSTONE MORTGAGE TRUST, INC. | |
Entity Central Index Key | 1,061,630 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 93,230,131 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 104,252 | $ 51,810 |
Restricted cash | 7,025 | 11,591 |
Loans receivable, net | 10,131,323 | 4,428,500 |
Equity investments in unconsolidated subsidiaries | 7,406 | 10,604 |
Accrued interest receivable, prepaid expenses, and other assets | 216,055 | 86,016 |
Total Assets | 10,466,061 | 4,588,521 |
Liabilities and Equity | ||
Accounts payable, accrued expenses, and other liabilities | 83,182 | 61,013 |
Secured debt agreements | 7,088,738 | 2,365,336 |
Loan participations sold | 635,581 | 499,433 |
Convertible notes, net | 163,073 | 161,853 |
Total Liabilities | 7,970,574 | 3,087,635 |
Equity | ||
Additional paid-in capital | 3,063,429 | 2,027,404 |
Accumulated other comprehensive loss | (19,332) | (15,024) |
Accumulated deficit | (561,905) | (547,592) |
Total Blackstone Mortgage Trust, Inc. stockholders' equity | 2,483,124 | 1,465,371 |
Non-controlling interests | 12,363 | 35,515 |
Total Equity | 2,495,487 | 1,500,886 |
Total Liabilities and Equity | 10,466,061 | 4,588,521 |
Class A Common Stock [Member] | ||
Equity | ||
Class A common stock, $0.01 par value, 200,000,000 shares authorized, 93,229,986 and 58,269,889 shares issued and outstanding as of June 30, 2015 and December 31, 2014, respectively | $ 932 | $ 583 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - Class A Common Stock [Member] - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 93,229,986 | 58,269,889 |
Common stock, shares outstanding | 93,229,986 | 58,269,889 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income from loans and other investments | ||||
Interest and related income | $ 80,481 | $ 42,466 | $ 143,889 | $ 76,122 |
Less: Interest and related expenses | 30,634 | 15,720 | 54,796 | 27,794 |
Income from loans and other investments, net | 49,847 | 26,746 | 89,093 | 48,328 |
Other expenses | ||||
Management and incentive fees | 8,051 | 4,410 | 14,721 | 7,807 |
General and administrative expenses | 15,698 | 15,356 | 23,359 | 18,554 |
Total other expenses | 23,749 | 19,766 | 38,080 | 26,361 |
Unrealized gain on investments at fair value | 4,714 | 7,163 | 22,190 | 5,824 |
Income from equity investments in unconsolidated subsidiaries | 1,710 | 24,294 | 5,659 | 24,294 |
Income before income taxes | 32,522 | 38,437 | 78,862 | 52,085 |
Income tax provision (benefit) | 105 | (2) | 350 | 530 |
Net income | 32,417 | 38,439 | 78,512 | 51,555 |
Net income attributable to non-controlling interests | (3,133) | (4,973) | (13,833) | (5,024) |
Net income attributable to Blackstone Mortgage Trust, Inc. | $ 29,284 | $ 33,466 | $ 64,679 | $ 46,531 |
Net income per share of common stock basic and diluted | $ 0.36 | $ 0.70 | $ 0.93 | $ 1.08 |
Weighted-average shares of common stock outstanding, basic and diluted | 80,940,535 | 47,977,813 | 69,820,061 | 43,000,242 |
Dividends declared per share of common stock | $ 0.52 | $ 0.48 | $ 1.04 | $ 0.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net income | $ 32,417 | $ 38,439 | $ 78,512 | $ 51,555 |
Other comprehensive income: | ||||
Unrealized gain (loss) on foreign currency remeasurement | 15,732 | 1,894 | (4,336) | 1,930 |
Unrealized (loss) gain on derivative financial instruments | (3,308) | 28 | ||
Comprehensive income | 44,841 | 40,333 | 74,204 | 53,485 |
Comprehensive income attributable to non-controlling interests | (3,133) | (4,973) | (13,833) | (5,024) |
Comprehensive income attributable to Blackstone Mortgage Trust, Inc. | $ 41,708 | $ 35,360 | $ 60,371 | $ 48,461 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Accumulated Deficit [Member] | Blackstone Mortgage Trust Inc [Member] | Non-Controlling Interests [Member] | Class A Common Stock [Member]Common Stock [Member] |
Balance at Dec. 31, 2013 | $ 756,750 | $ 1,252,986 | $ 798 | $ (536,170) | $ 717,909 | $ 38,841 | $ 295 |
Shares of class A common stock issued, net | 510,845 | 510,654 | 510,845 | 191 | |||
Restricted class A common stock earned | 4,027 | 4,029 | 4,027 | (2) | |||
Dividends reinvested | 97 | (97) | |||||
Deferred directors' compensation | 188 | 188 | 188 | ||||
Other comprehensive income (loss) | 1,930 | 1,930 | 1,930 | ||||
Net income | 51,555 | 46,531 | 46,531 | 5,024 | |||
Dividends declared on common stock | (42,122) | (42,122) | (42,122) | ||||
Distributions to non-controlling interests | (1,148) | (1,148) | |||||
Balance at Jun. 30, 2014 | 1,282,025 | 1,767,954 | 2,728 | (531,858) | 1,239,308 | 42,717 | 484 |
Balance at Dec. 31, 2014 | 1,500,886 | 2,027,404 | (15,024) | (547,592) | 1,465,371 | 35,515 | 583 |
Shares of class A common stock issued, net | 1,029,557 | 1,029,208 | 1,029,557 | 349 | |||
Restricted class A common stock earned | 6,504 | 6,504 | 6,504 | ||||
Dividends reinvested | 7 | 125 | (118) | 7 | |||
Deferred directors' compensation | 188 | 188 | 188 | ||||
Other comprehensive income (loss) | (4,308) | (4,308) | (4,308) | ||||
Net income | 78,512 | 64,679 | 64,679 | 13,833 | |||
Dividends declared on common stock | (78,874) | (78,874) | (78,874) | ||||
Distributions to non-controlling interests | (36,985) | (36,985) | |||||
Balance at Jun. 30, 2015 | $ 2,495,487 | $ 3,063,429 | $ (19,332) | $ (561,905) | $ 2,483,124 | $ 12,363 | $ 932 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 78,512 | $ 51,555 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized gain on investments at fair value | (22,190) | (5,824) |
Income from equity investments in unconsolidated subsidiaries | (5,659) | (24,294) |
Non-cash compensation expense | 11,184 | 4,769 |
Distributions of income from unconsolidated subsidiaries | 5,007 | 14,125 |
Amortization of deferred interest on loans | (12,198) | (7,702) |
Amortization of deferred financing costs and premiums/discount on debt obligations | 7,955 | 4,103 |
Changes in assets and liabilities, net | ||
Accrued interest receivable, prepaid expenses, and other assets | (56,703) | (5,236) |
Accounts payable, accrued expenses, and other liabilities | 443 | 2,513 |
Net cash provided by operating activities | 6,351 | 34,009 |
Cash flows from investing activities | ||
Originations and fundings of loans receivable | (6,430,243) | (1,740,977) |
Origination and exit fees received on loans receivable | 16,373 | 21,751 |
Principal collections and proceeds from the sale of loans receivable and other assets | 686,037 | 271,884 |
Decrease (increase) in restricted cash | 4,566 | (1,296) |
Net cash used in investing activities | (5,723,267) | (1,448,638) |
Cash flows from financing activities | ||
Borrowings under secured debt agreements | 6,241,975 | 1,835,136 |
Repayments under secured debt agreements | (1,520,790) | (1,167,507) |
Repayment of other liabilities | (20,794) | |
Proceeds from sales of loan participations | 256,000 | 368,850 |
Repayment of loan participations | (124,164) | |
Payment of deferred financing costs | (17,712) | (10,510) |
Payments under derivative financial instruments | 1,062 | |
Purchase of and distributions to non-controlling interests | (36,985) | (1,148) |
Proceeds from issuance of class A common stock | 1,029,557 | 510,845 |
Dividends paid on class A common stock | (60,695) | (32,129) |
Net cash provided by financing activities | 5,768,248 | 1,482,743 |
Net increase in cash and cash equivalents | 51,332 | 68,114 |
Cash and cash equivalents at beginning of period | 51,810 | 52,342 |
Effects of currency translation on cash and cash equivalents | 1,110 | |
Cash and cash equivalents at end of period | 104,252 | 120,456 |
Supplemental disclosure of cash flows information | ||
Payments of interest | (43,558) | (21,522) |
Payments of income taxes | (126) | (1,159) |
Supplemental disclosure of non-cash investing and financing activities | ||
Dividends declared, not paid | (48,480) | (23,322) |
Participations sold, net | $ 131,836 | $ 368,850 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization | 1. ORGANIZATION References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise. Blackstone Mortgage Trust is a real estate finance company that originates and purchases senior loans collateralized by properties in North America and Europe. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of The Blackstone Group L.P., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” We are headquartered in New York City. We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain our exemption from registration under the Investment Company Act of 1940, as amended, or the Investment Company Act. We are organized as a holding company and conduct our business primarily through our various subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing its consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission. Basis of Presentation The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain of the assets and credit of our consolidated subsidiaries are not available to satisfy the debt or other obligations of us, our affiliates, or other entities. One of our subsidiaries, CT Legacy Partners, LLC, or CT Legacy Partners, accounts for its operations in accordance with industry-specific GAAP accounting guidance for investment companies, pursuant to which it reports its investments at fair value. We have retained this accounting treatment in consolidation and, accordingly, report the loans and other investments of CT Legacy Partners at fair value on our consolidated balance sheets. Certain reclassifications have been made in the presentation of the prior period consolidated balance sheet and statement of cash flows to conform to the current period presentation. Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2014, we no longer had any assets or liabilities on our consolidated balance sheet attributable to any consolidated VIEs. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates. Revenue Recognition Interest income from our loans receivable is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred until the loan is advanced and is then recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. Income is then recorded on the basis of cash received until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are similarly deferred, however expenses related to loans acquired are included in general and administrative expenses as incurred. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. Restricted Cash We classify the cash balances held by CT Legacy Partners as restricted because, while these cash balances are available for use by CT Legacy Partners for its operations, they cannot be used by us until our allocable share is distributed from CT Legacy Partners and cannot be commingled with any of our unrestricted cash balances. Loans Receivable and Provision for Loan Losses We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. We are required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. If a loan is determined to be impaired, we write down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. Actual losses, if any, could ultimately differ from these estimates. Our Manager performs a quarterly review of our portfolio of loans. In conjunction with this review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: 1 - Very Low Risk 2 - Low Risk 3 - Medium Risk 4 - High Risk/Potential for Loss: 5 - Impaired/Loss Likely: During the three months ended June 30, 2015, we acquired a portfolio of loans from General Electric Capital Corporation and certain of its affiliates for a total purchase price of $4.7 billion. We allocated the aggregate purchase price between each loan based on its fair value relative to the overall portfolio, which allocation resulted in purchase discounts or premiums determined on an asset-by-asset basis. Each loan will accrete from its allocated purchase price to its principal balance over the life of the loan, consistent with the other loans in our portfolio. Equity Investments in Unconsolidated Subsidiaries Our carried interest in CT Opportunity Partners I, LP, or CTOPI, is accounted for using the equity method. CTOPI’s assets and liabilities are not consolidated into our financial statements due to our determination that (i) it is not a VIE and (ii) the other investors in CTOPI have sufficient rights to preclude consolidation by us. As such, we report our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The recognition of income from CTOPI is generally deferred until cash is collected or appropriate contingencies have been eliminated. Derivative Financial Instruments We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value. On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or freestanding derivative. For all derivatives other than those designated as freestanding derivatives, we formally document our hedge relationships and designation at inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. Changes in the fair value of the effective portion of our hedges are reflected in accumulated other comprehensive income (loss) on our consolidated financial statements. Changes in the fair value of the ineffective portion of our hedges are included in net income (loss). Amounts are reclassified out of accumulated other comprehensive income (loss) and into net income (loss) when the hedged item is either sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a freestanding derivative, the changes in its value are included in net income (loss). Repurchase Agreements We record investments financed with repurchase agreements as separate assets and the related borrowings under any repurchase agreements are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the repurchase agreements are reported separately on our consolidated statements of operations. Loan Participations Sold Loan participations sold represent senior interests in certain loans that we sold, however, we present such loan participations sold as liabilities because these arrangements do not qualify as sales under GAAP. These participations are non-recourse and remain on our consolidated balance sheet until the loan is repaid. The gross presentation of loan participations sold does not impact stockholders’ equity or net income. Convertible Notes The “Debt with Conversion and Other Options” Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity component of the convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to the convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period. Deferred Financing Costs The deferred financing costs that are included in accrued interest receivable, prepaid expenses, and other assets on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations. Fair Value of Financial Instruments The “Fair Value Measurements and Disclosures” Topic, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: • Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. • Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. • Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers. Certain of our other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 13. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our Manager’s estimation of fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. We are also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. • Restricted cash: The carrying amount of restricted cash approximates fair value. • Loans receivable, net: The fair values for these loans were estimated by our Manager taking into consideration factors, including capitalization rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. • Derivative financial instruments: The fair value of our foreign currency contracts and interest rates caps was valued using advice from a third party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. • Repurchase obligations: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced. • Convertible notes, net: The convertible notes are actively traded and their fair values were obtained using quoted market prices for these instruments. • Loan participations sold: The fair value of these instruments were estimated based on the value of the related loan receivable asset. Income Taxes Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 11 for additional information. Stock-Based Compensation Our stock-based compensation consists of awards issued to our Manager and certain of its employees that vest over the life of the awards as well as deferred stock units issued to certain members of our Board of Directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 12 for additional information. Earnings per Share Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses. Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of class A common stock, including restricted class A common stock and deferred stock units. Refer to Note 9 for additional discussion of earnings per share. Foreign Currency In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income. Underwriting Commissions and Offering Costs Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. Segment Reporting We previously operated our business through two segments, the Loan Origination segment and the CT Legacy Portfolio segment. In the first quarter of 2015, as a result of asset resolutions in our CT Legacy Portfolio, our Manager determined that the CT Legacy Portfolio segment was no longer a distinct and separately managed business. Accordingly, we no longer present segment reporting. Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” or ASU 2015-03. ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments presented in ASU 2015-03 are consistent with the accounting guidance related to debt discounts. ASU 2015-03 is effective for the first interim or annual period beginning after December 15, 2015. Early adoption is permitted, and we are currently assessing the impact of ASU 2015-03 on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” or ASU 2015-02. ASU 2015-02 amends the guidance related to accounting for the consolidation of certain legal entities. The modifications made in ASU 2015-02 impact limited partnerships and similar legal entities, the evaluation of (i) fees paid to a decision maker or a service provider as a variable interest, (ii) fee arrangements, and (iii) related parties on the primary beneficiary determination. ASU 2015-02 is effective for the first interim or annual period beginning after December 15, 2015. We have elected early adoption of ASU 2015-02 and determined there to be no material impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures,” or ASU 2014-11. ASU 2014-11 amends the accounting guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings, and requires additional disclosure about certain transactions by the transferor. ASU 2014-11 is effective for certain transactions that qualify for sales treatment for the first interim or annual period beginning after December 15, 2014. The new disclosure requirements for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that qualify for secured borrowing treatment is effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. We have historically recorded our repurchase arrangements as secured borrowings and, accordingly, the adoption of ASU 2014-11 did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) , |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans Receivable | 3. LOANS RECEIVABLE During the second quarter of 2015, we completed the acquisition of a $4.9 billion portfolio of commercial mortgage loans secured by properties located in North America and Europe from General Electric Capital Corporation, or GE, and certain of its affiliates and joint venture partnerships. The purchase price for this GE portfolio was $4.7 billion and we assumed $202.1 million of unfunded commitments. The following table details overall statistics for our loans receivable portfolio as of June 30, 2015 ($ in thousands): Floating Rate Loans Fixed Rate Loans Total Number of loans 101 37 138 Principal balance $ 8,009,046 $ 2,160,563 $ 10,169,609 Net book value $ 7,969,227 $ 2,162,096 $ 10,131,323 Unfunded loan commitments (1) $ 786,419 $ 4,735 $ 791,154 Weighted-average cash coupon (2) L+4.21 % 5.33 % 4.72 % Weighted-average all-in yield (2) L+4.59 % 5.54 % 5.06 % Weighted-average maximum maturity (years) (3) 3.5 2.9 3.4 (1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next four years. (2) As of June 30, 2015, our floating rate loans were indexed to various benchmark rates, with 80% of floating rate loans indexed to USD LIBOR. In addition, $1.2 billion of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 0.59%, as of June 30, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees. Coupon and all-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of June 30, 2015, 69% of our loans were subject to yield maintenance or other prepayment restrictions and 31% were open to repayment by the borrower without penalty. The following table details overall statistics for our loans receivable portfolio as of December 31, 2014 ($ in thousands): December 31, 2014 Number of loans 60 Principal balance $ 4,462,897 Net book value $ 4,428,500 Unfunded loan commitments (1) $ 513,229 Weighted-average cash coupon (2) L+4.36 % Weighted-average all-in yield (2) L+4.81 % Weighted-average maximum maturity (years) (3) 3.9 (1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next four years. (2) As of December 31, 2014, all of our loans were floating rate loans and were indexed to various benchmark rates, with 79% of floating rate loans indexed to USD LIBOR. In addition, 14% of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 0.31%, as of December 31, 2014. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of December 31, 2014, 85% of our loans were subject to yield maintenance or other prepayment restrictions and 15% were open to repayment by the borrower without penalty. Activity relating to our loans receivable was as follows ($ in thousands): Principal Deferred Fees / (1) Net Book December 31, 2014 $ 4,462,897 $ (34,397 ) $ 4,428,500 Loan purchases and fundings 6,430,243 — 6,430,243 Loan repayments and sales (723,922 ) — (723,922 ) Unrealized gain (loss) on foreign currency translation 391 286 677 Deferred fees and other items (1) — (16,373 ) (16,373 ) Amortization of fees and other items (1) — 12,198 12,198 June 30, 2015 $ 10,169,609 $ (38,286 ) $ 10,131,323 (1) Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses. The tables below detail the types of loans in our loan portfolio, as well as the property type and geographic distribution of the properties securing these loans ($ in thousands): June 30, 2015 December 31, 2014 Asset Type Net Book Percentage Net Book Percentage Senior loans (1) $ 9,977,017 98 % $ 4,340,586 98 % Subordinate loans (2) 154,306 2 87,914 2 $ 10,131,323 100 % $ 4,428,500 100 % Property Type Net Book Percentage Net Book Percentage Office $ 4,088,256 40 % $ 1,878,605 42 % Hotel 2,231,682 22 1,267,486 29 Manufactured housing 1,415,800 14 — — Retail 773,034 8 270,812 6 Multifamily 472,867 5 426,094 10 Condominium 352,152 3 315,686 7 Other 797,532 8 269,817 6 $ 10,131,323 100 % $ 4,428,500 100 % Geographic Location Net Book Percentage Net Book Percentage United States Northeast $ 2,275,132 22 % $ 1,383,258 31 % Southeast 1,952,500 19 657,484 15 West 1,293,416 13 628,275 14 Southwest 1,266,544 13 405,741 9 Midwest 607,835 6 335,406 8 Northwest 398,951 4 138,796 3 Subtotal 7,794,378 77 3,548,960 80 International United Kingdom 1,159,450 11 622,692 14 Canada 806,010 8 137,024 3 Germany 230,565 2 — — Spain 79,875 1 86,289 2 Netherlands 61,045 1 33,535 1 Subtotal 2,336,945 23 879,540 20 Total $ 10,131,323 100 % $ 4,428,500 100 % (1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans. (2) Includes mezzanine loans and subordinate interests in mortgages. Loan Risk Ratings As further described in Note 2, our Manager evaluates our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2. The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands): June 30, 2015 December 31, 2014 Risk Rating Number Principal Net Number Principal Net 1 9 $ 970,624 $ 963,451 5 $ 209,961 $ 209,112 2 87 6,626,108 6,601,541 44 3,339,972 3,313,906 3 42 2,572,877 2,566,331 11 912,964 905,482 4 - 5 — — — — — — 138 $ 10,169,609 $ 10,131,323 60 $ 4,462,897 $ 4,428,500 We do not have any loan impairments, nonaccrual loans, or loans in maturity default as of June 30, 2015 or December 31, 2014. |
Equity Investments in Unconsoli
Equity Investments in Unconsolidated Subsidiaries | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments in Unconsolidated Subsidiaries | 4. EQUITY INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES As of June 30, 2015, our equity investments in unconsolidated subsidiaries consisted solely of our carried interest in CTOPI, a fund sponsored and managed by an affiliate of our Manager. Activity relating to our equity investments in unconsolidated subsidiaries was as follows ($ in thousands): CTOPI Total as of December 31, 2014 $ 10,604 Distributions (5,007 ) Income allocation (1) 1,809 Total as of June 30, 2015 $ 7,406 (1) In instances where we have not received cash or all appropriate contingencies have not been eliminated, we have deferred the recognition of promote revenue allocated to us from CTOPI in respect of our carried interest in CTOPI, and recorded an offsetting liability as a component of accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets. Our carried interest in CTOPI entitles us to earn promote revenue in an amount equal to 17.7% of the fund’s profits, after a 9% preferred return and 100% return of capital to the CTOPI partners. As of June 30, 2015, we had been allocated $7.4 million of promote revenue from CTOPI based on a hypothetical liquidation of the fund at its net asset value. Accordingly, we have recognized this allocation as an equity investment in CTOPI on our consolidated balance sheets. Generally, we defer recognition of income from CTOPI until cash is received or earned, pending distribution, and appropriate contingencies have been eliminated. During the six months ended June 30, 2015, we recognized $5.7 million of promote income from CTOPI in respect of our carried interest and recorded such amount as income in our consolidated statement of operations. This carried interest was either received in cash, or was earned and available in cash at CTOPI pending future distribution as of June 30, 2015. CTOPI Incentive Management Fee Grants In January 2011, we created a management compensation pool for employees equal to 45% of the CTOPI promote distributions received by us. Approximately 68% of the pool is two-thirds vested as of June 30, 2015, with the remainder contingent on continued employment with an affiliate of our Manager and upon our receipt of promote distributions from CTOPI. The remaining 32% of the pool is fully vested as a result of an acceleration event. During the six months ended June 30, 2015, we accrued $2.5 million under the CTOPI incentive plan, which amount was recognized as a component of general and administrative expenses in our consolidated statement of operations. |
Secured Debt Agreements
Secured Debt Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Secured Debt Agreements | 5. SECURED DEBT AGREEMENTS As of June 30, 2015, our secured financings included revolving repurchase facilities, the GE portfolio acquisition facility, and asset-specific repurchase agreements. The following table details our secured debt agreements ($ in thousands): Secured Debt Agreements June 30, 2015 December 31, 2014 Revolving repurchase facilities $ 2,636,822 $ 2,040,783 GE portfolio acquisition facility 4,038,165 — Asset-specific repurchase agreements 413,751 324,553 $ 7,088,738 $ 2,365,336 Revolving Repurchase Facilities During the six months ended June 30, 2015, we increased the maximum facility size of three of our revolving repurchase facilities, providing an additional $762.5 million of credit capacity. The following table details our revolving repurchase facilities as of June 30, 2015 ($ in thousands): Maximum Facility Size (1) Collateral Assets (2) Repurchase Borrowings Lender Potential Outstanding Available (3) Bank of America $ 750,000 $ 815,125 $ 642,169 $ 606,535 $ 35,634 JP Morgan (4) 753,348 832,222 653,830 566,063 87,767 Wells Fargo 1,000,000 887,926 689,679 549,858 139,821 MetLife 750,000 556,409 433,445 364,153 69,292 Citibank 500,000 575,506 439,239 362,562 76,677 Morgan Stanley (5) 393,450 243,383 190,850 187,651 3,199 $ 4,146,798 $ 3,910,571 $ 3,049,212 $ 2,636,822 $ 412,390 (1) Maximum facility size represents the total amount of borrowings in each repurchase agreement, however these borrowings are only available to us once sufficient collateral assets have been pledged under each facility at the discretion of the lender. (2) Represents the principal balance of the collateral assets. (3) Potential borrowings represent the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility. (4) The JP Morgan maximum facility size is composed of a $250.0 million facility and a £153.0 million ($240.8 million) facility, and $262.5 million related solely to a specific asset with a repurchase date of January 9, 2018. (5) The Morgan Stanley maximum facility size represents a £250.0 million ($393.5 million) facility. The weighted-average outstanding balance of our revolving repurchase facilities was $2.2 billion for the six months ended June 30, 2015. As of June 30, 2015, we had aggregate borrowings of $2.6 billion outstanding under our revolving repurchase facilities, with a weighted-average cash coupon of LIBOR plus 1.83% per annum and a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 2.05% per annum. As of June 30, 2015, outstanding borrowings under these facilities had a weighted-average maturity, excluding extension options and term-out provisions, of 1.7 years. Borrowings under each facility are subject to the initial approval of eligible collateral loans by the lender and the maximum advance rate and pricing rate of individual advances are determined with reference to the attributes of the respective collateral loan. The following table outlines the key terms of our revolving repurchase facilities: Lender Rate (1)(2) Guarantee (1)(3) Advance Rate (1) Margin Call (4) Term/Maturity Bank of America L+1.69 % 50% 79.5% Collateral marks only May 21, 2019 (5) JP Morgan L+1.81 % 25% 80.3% Collateral marks only Term matched (6)(7) Wells Fargo L+1.80 % 25% 79.2% Collateral marks only Term matched (6) MetLife L+1.80 % 50% 77.9% Collateral marks only February 24, 2021 (8) Citibank L+1.93 % 25% 76.7% Collateral marks only Term matched (6) Morgan Stanley L+2.34 % 25% 78.4% Collateral marks only March 3, 2017 (1) Represents a weighted-average based on collateral assets pledged and borrowings outstanding as of June 30, 2015. (2) Represents weighted-average cash coupon on borrowings outstanding as of June 30, 2015. As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. (3) Other than amounts guaranteed based on specific collateral asset types, borrowings under our revolving repurchase facilities are not recourse to us. (4) Margin call provisions under our revolving repurchase facilities do not permit valuation adjustments based on capital markets activity, and are limited to collateral-specific credit marks. (5) Includes two one-year extension options which may be exercised at our sole discretion. (6) These revolving repurchase facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset. (7) Borrowings denominated in British pound sterling under this facility mature on January 7, 2018. (8) Includes five one-year extension options which may be exercised at our sole discretion. GE Portfolio Acquisition Facility During the second quarter of 2015, concurrently with our acquisition of the GE loan portfolio, we entered into an agreement with Wells Fargo to provide us with $4.2 billion of financing secured by the portfolio. Of this amount, an aggregate of $4.0 billion was advanced at closings that were completed in stages during the quarter, and an additional $162.0 million is available to finance future loan fundings. The GE portfolio acquisition facility is non-revolving and consists of a single master repurchase agreement providing for both (i) asset-specific borrowings for each collateral asset as well as (ii) a sequential pay advance feature. Asset-Specific Borrowings The asset-specific borrowings under the GE portfolio acquisition facility were advanced at a weighted average rate of 80% of our purchase price of the collateral assets and will be repaid pro rata from collateral asset repayment proceeds. The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. As of June 30, 2015, those borrowings were denominated in U.S. Dollars, Canadian Dollars, British Pounds Sterling, and Euros. The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. We guarantee obligations under the GE portfolio acquisition facility in an amount equal to the greater of (i) 25% of outstanding asset-specific borrowings, and (ii) $250.0 million. As of June 30, 2015, we had outstanding asset-specific borrowings of $3.8 billion under the GE portfolio acquisition facility. Sequential Pay Advance The GE portfolio acquisition facility also includes a sequential pay advance feature that provides $237.2 million of borrowings, representing an additional 5% advance against each collateral asset pledged under the facility. Borrowings under the sequential pay advance accrue interest at a rate equal to the sum of (i) 30-day LIBOR plus (ii) a margin of 3.10%. The sequential pay advance is denominated in U.S. Dollars and will be repaid from collateral loan principal repayments, after repayment of the related asset-specific borrowing. The sequential pay advances each have a maturity date that is one year from the date of funding, and we guarantee 100% of outstanding borrowings of the sequential pay advance. As of June 30, 2015, we had outstanding sequential pay advance borrowings of $236.7 million under the GE portfolio acquisition facility. Asset-Specific Repurchase Agreements During the six months ended June 30, 2015, we entered into one asset-specific repurchase agreement providing an additional $103.1 million of credit capacity. The following table details statistics for our asset-specific repurchase agreements ($ in thousands): June 30, 2015 December 31, 2014 Repurchase Collateral Repurchase Collateral Number of loans 4 5 3 4 Principal balance $ 413,751 $ 548,837 $ 324,553 $ 429,197 Weighted-average cash coupon (1) L+2.75 % L+5.21 % L+2.68 % L+5.07 % Weighted-average cost / all-in yield (1) L+3.19 % L+5.70 % L+3.16 % L+5.53 % (1) As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, cost / all-in yield includes the amortization of deferred origination fees / financing costs. The weighted-average outstanding balance of our asset-specific repurchase agreements was $375.5 million for the six months ended June 30, 2015. Debt Covenants Each of the guarantees related to our secured debt agreements contain the following uniform financial covenants: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges shall be not less than 1.40 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $1.9 billion as of June 30, 2015 plus 75% of the net cash proceeds of future equity issuances subsequent to June 30, 2015; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of June 30, 2015 and December 31, 2014, we were in compliance with these covenants. |
Loan Participations Sold
Loan Participations Sold | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Loan Participations Sold | 6. LOAN PARTICIPATIONS SOLD The financing of a loan by the non-recourse sale of a senior interest in the loan through a participation agreement does not qualify as a sale under GAAP. Therefore, in the instance of such sales, we present the whole loan as an asset and the loan participation sold as a liability on our consolidated balance sheet until the loan is repaid. The gross presentation of loan participations sold does not impact stockholders’ equity or net income. During the six months ended June 30, 2015, we sold one senior loan participation, providing an additional $256.0 million of credit capacity. The following table details statistics for our loan participations sold ($ in thousands): June 30, 2015 December 31, 2014 Participations Underlying Participations Underlying Number of loans 4 4 4 4 Principal balance $ 635,581 $ 786,511 $ 499,433 $ 635,701 Weighted-average cash coupon (1) L+2.39 % L+4.03 % L+2.51 % L+4.10 % Weighted-average all-in cost / yield (1) L+2.64 % L+4.26 % L+2.71 % L+4.71 % (1) As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in cost / yield includes the amortization of deferred origination fees / financing costs. |
Convertible Notes, Net
Convertible Notes, Net | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Convertible Notes, Net | 7. CONVERTIBLE NOTES, NET In November 2013, we issued $172.5 million of 5.25% convertible senior notes due on December 1, 2018, or Convertible Notes. The Convertible Notes’ issuance costs are amortized through interest expense over the life of the Convertible Notes using the effective interest method. Including this amortization, our all-in cost of the Convertible Notes is 5.87% per annum. The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances, prior to the close of business on August 31, 2018, at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The Convertible Notes were not convertible as of June 30, 2015. The conversion rate was initially set to equal 34.8943 shares of class A common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of $28.66 per share of class A common stock, subject to adjustment upon the occurrence of certain events. We may not redeem the Convertible Notes prior to maturity. As of June 30, 2015, the conversion option value was zero based on the price of our class A common stock of $27.82. In addition, we had the intent and ability to settle the Convertible Notes in cash. As a result, the Convertible Notes did not have any impact on our diluted earnings per share. We recorded a $13.2 million discount upon issuance of the Convertible Notes, including $4.1 million of initial issuance costs, based on the implied value of the conversion option and an assumed effective interest rate of 6.50%. Including the amortization of this discount and the issuance costs, our total cost of the Convertible Notes is 7.16% per annum. During the six months ended June 30, 2015, we incurred total interest on our convertible notes of $5.8 million, of which $4.5 million related to cash coupon and $1.3 million related to the amortization of discount and certain issuance costs. During the six months ended June 30, 2014, we incurred total interest on our convertible notes of $5.7 million, of which $4.5 million related to cash coupon and $1.2 million related to the amortization of discount and certain issuance costs. As of June 30, 2015, the Convertible Notes were carried on our consolidated balance sheet at $163.1 million, net of an unamortized discount of $9.4 million. Refer to Note 2 for additional discussion of our accounting policies for the Convertible Notes. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives We use derivative financial instruments, which include interest rate caps and may also include interest rate swaps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with our borrowings. In addition, certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. Dollar. We enter into derivative financial instruments to protect the value or fix the amount of certain obligations in terms of the U.S. Dollar. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financing structure as well as to hedge specific transactions. We do not intend to utilize derivatives for speculative or other purposes. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, we only enter into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which we and our affiliates may also have other financial relationships. We do not anticipate that any of the counterparties will fail to meet their obligations. Cash Flow Hedges of Interest Rate Risk Our objective in using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. In addition, we may be required by our lenders to enter into certain derivative contracts related to our credit facilities. To accomplish this objective, we primarily use interest rate caps. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above a certain level in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged transaction affects earnings. During the six months ended June 30, 2015, such derivatives were used to hedge the variable cash flows associated with floating rate debt. The ineffective portion of the change in fair value of such derivatives is recognized directly in earnings. During the six months ended June 30, 2015, we recorded no hedge ineffectiveness in our consolidated statement of operations. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our floating rate debt. During the twelve months following June 30, 2015, we estimate that an additional $131,000 will be reclassified from other comprehensive income as an increase to interest expense. As of June 30, 2015, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands): Interest Rate Derivatives Number of Notional Strike Index Wtd. Avg. Interest Rate Caps 26 $ 1,097,632 2% USD LIBOR 1.8 Interest Rate Caps 11 C$ 550,589 2% CDOR 1.7 Interest Rate Caps 1 € 152,710 2% EURIBOR 1.5 Interest Rate Caps 1 £ 15,142 2% GBP LIBOR 1.8 Net Investment Hedges of Foreign Currency Risk We have made investments in foreign entities which expose us to fluctuations between the U.S. Dollar and the foreign currency of the investment. Currently, we use derivative financial instruments to manage, or hedge, the variability in the carrying value of certain of our net investments in consolidated, foreign currency-denominated subsidiaries caused by the fluctuations in foreign currency exchange rates. For derivatives that are designated and qualify as a hedge of our net investment in a foreign currency, the gain or loss on such derivatives is reported in other comprehensive income as part of the cumulative translation adjustment to the extent it is effective. Any ineffective portion of a net investment hedge is recognized in our consolidated statement of operations. For derivatives that are not designated as hedging instruments, gains or losses are recognized in our consolidated statement of operations during the current period. As of June 30, 2015, we had the following outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands): Foreign Currency Derivatives Number of Notional Sell CAD Forward 2 C$ 204,261 Sell GBP Forward 2 £ 64,000 Sell EUR Forward 2 € 51,000 Non-designated Hedges Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks, but do not meet the strict hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. During both the three and six months ended June 30, 2015, we recorded losses of $11,000 related to non-designated hedges. As of June 30, 2015, we had the following outstanding non-designated hedges (notional amount in thousands): Interest Rate Derivatives Number of Notional Interest Rate Caps 2 $ 42,240 Interest Rate Caps 1 £ 619 The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an (1) Fair Value of Derivatives in a (2) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments: Interest rate caps $ 919 $ — $ — $ — Foreign exchange contracts 1,672 1,138 2,506 — Total derivatives designated as hedging instruments $ 2,591 $ 1,138 $ 2,506 $ — (1) Included in accrued interest receivable, prepaid expenses, and other assets in our consolidated balance sheet. (2) Included in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheet. The following table presents the effect of our derivative financial instruments on our consolidated statement of operations for the three and six months ended June 30, 2015 ($ in thousands): Amount of Gain (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Income (Effective Portion) Derivatives in Hedging Relationships Three Months Six Months Three Months Six Months Cash Flow Hedges Interest rate caps $ 823 $ 823 Interest Expense $ — $ — Net Investment Hedges Foreign exchange contracts 2,485 (851 ) Gain (Loss) on Sale of Subsidiary — — Total $ 3,308 $ (28 ) $ — $ — (1) During the six months ended June 30, 2015, we received net cash settlements of $2.8 million on our foreign currency forward contracts. Those amounts are included as a component of Other Comprehensive Income on our consolidated balance sheet. Credit-Risk Related Contingent Features We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of June 30, 2015, we were in a net asset position of $921,964 with one of our derivative counterparties and a net liability position of $1.3 million with another of our derivative counterparties. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity | 9. EQUITY Stock and Stock Equivalents Authorized Capital As of June 30, 2015, we had the authority to issue up to 300,000,000 shares of stock, consisting of 200,000,000 shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock. We do not have any shares of preferred stock issued and outstanding as of June 30, 2015. Class A Common Stock and Deferred Stock Units Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive such dividends as may be authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any. The following table details our issuance of class A common stock during the six months ended June 30, 2015 ($ in thousands, except share and per share data): Class A Common Stock Offerings 2015 Total / Wtd. Avg. April 2015 May 2015 (3) June 2015 Shares issued 23,000,000 280,025 11,500,000 34,780,025 Share issue price (1) $ 29.75 $ 29.97 $ 29.42 $ 29.64 Net proceeds (2) $ 683,727 $ 7,895 $ 337,935 $ 1,029,557 (1) Represents price per share paid by the underwriters or sales agents, as applicable, after underwriting or sales discounts and commissions. (2) Net proceeds represents proceeds received from the underwriters less applicable transaction costs. (3) Issuance represents 280,025 shares issued over a five-day period in May 2015 under our at-the-market program, with a weighted average issue price of $29.97, and generating net proceeds of $7.9 million after allocable expenses. We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 12 for additional discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors in lieu of cash compensation for services rendered. These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock. The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units: Six Months Ended June 30, Common Stock Outstanding (1) 2015 2014 Beginning balance 58,388,808 29,602,884 Issuance of class A common stock 34,780,298 18,975,001 Issuance of restricted class A common stock, net 179,799 — Issuance of deferred stock units 10,665 10,009 Ending balance 93,359,570 48,587,894 (1) Deferred stock units held by members of our board of directors totalled 129,584 and 106,188 as of June 30, 2015 and 2014, respectively. Dividend Reinvestment and Direct Stock Purchase Plan On March 25, 2014, we adopted a dividend reinvestment and direct stock purchase plan, under which we registered and reserved for issuance, in the aggregate, 10,000,000 shares of class A common stock. Under the dividend reinvestment component of this plan, our class A common stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common stock. The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us. During the six months ended June 30, 2015, we issued 273 shares of class A common stock under the dividend reinvestment component and did not issue shares under the direct stock purchase plan component. As of June 30, 2015, a total of 9,999,721 shares of class A common stock remain available for issuance under the dividend reinvestment and direct stock purchase plan. At the Market Stock Offering Program On May 9, 2014, we entered into equity distribution agreements, or ATM Agreements, pursuant to which we may sell, from time to time, up to an aggregate sales price of $200.0 million of our class A common stock. Sales of class A common stock made pursuant to the ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales will depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. During the six months ended June 30, 2015, we sold 280,025 shares of class A common stock under the ATM Agreements, with net proceeds totaling $7.9 million. As of June 30, 2015, sales of our class A common stock with an aggregate sales price of $188.6 million remain available for issuance under the ATM Agreements. Dividends We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant. On June 30, 2015, we declared a dividend of $0.52 per share, or $48.5 million, which was paid on July 15, 2015, to stockholders of record as of June 30, 2015. During the six months ended June 30, 2015, we declared aggregate dividends of $1.04 per share, or $78.9 million. During the six months ended June 30, 2014, we declared aggregate dividends of $0.96 per share, or $42.1 million. Earnings Per Share We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted shares have the same rights as our other shares of class A common stock, including participating in any gains and losses, and therefore have been included in our basic and diluted net income per share calculation. The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding for the indicated periods ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income (1) $ 29,284 $ 33,466 $ 64,679 $ 46,531 Weighted-average shares outstanding, basic and diluted 80,940,535 47,977,813 69,820,061 43,000,242 Per share amount, basic and diluted $ 0.36 $ 0.70 $ 0.93 $ 1.08 (1) Represents net income attributable to Blackstone Mortgage Trust, Inc. Other Balance Sheet Items Accumulated Other Comprehensive Loss As of June 30, 2015, total accumulated other comprehensive loss was $19.3 million, primarily representing (i) $20.5 million of cumulative currency translation adjustment on assets and liabilities denominated in foreign currencies and (ii) an offsetting $1.2 million gain related to changes in the fair value of derivative instruments. As of December 31, 2014, total accumulated other comprehensive loss was $15.0 million, primarily representing the cumulative currency translation adjustment on assets and liabilities denominated in a foreign currency. Non-Controlling Interests The non-controlling interests included on our consolidated balance sheets represent the equity interests in CT Legacy Partners that are not owned by us. A portion of CT Legacy Partners’ consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of CT Legacy Partners. As of June 30, 2015, CT Legacy Partners’ total equity was $21.2 million, of which $8.8 million was owned by Blackstone Mortgage Trust, Inc., and $12.4 million was allocated to non-controlling interests. |
Other Expenses
Other Expenses | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 10. OTHER EXPENSES Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses. Management and Incentive Fees Pursuant to our management agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the management agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in the management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period (or the period since the date of the first offering of our class A common stock following December 19, 2012, whichever is shorter) is greater than zero. Core Earnings is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items and (ii) the net income (loss) related to our legacy portfolio. During the six months ended June 30, 2015 and 2014, we incurred $13.5 million and $7.8 million of management fees payable to our Manager, respectively. During the six months ended June 30, 2015, we incurred $1.2 million of incentive fees payable to our Manager. We did not incur any incentive fees payable to our Manager during the six months ended June 30, 2014. General and Administrative Expenses General and administrative expenses consisted of the following ($ in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Professional services $ 777 $ 648 $ 1,476 $ 1,098 Operating and other costs 554 469 1,112 1,031 GE transaction costs 9,013 — 9,213 — Subtotal 10,344 1,117 11,801 2,129 Non-cash and CT Legacy Portfolio compensation expenses Management incentive awards plan - CTOPI (1) 828 11,190 2,605 11,190 Management incentive awards plan - CT Legacy Partners (2) 1,024 416 2,054 552 Restricted class A common stock earned 3,303 2,289 6,506 4,029 Director stock-based compensation 94 94 188 188 Subtotal 5,249 13,989 11,353 15,959 Total BXMT expenses 15,593 15,106 23,154 18,088 Expenses of consolidated subsidiaries 105 250 205 466 Total general and administrative expenses $ 15,698 $ 15,356 $ 23,359 $ 18,554 (1) Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion. (2) Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan. CT Legacy Partners Management Incentive Awards Plan In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of CT Legacy Partners (subject to certain caps and priority distributions). Approximately 50% of the pool is three-fourths vested as of June 30, 2015, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 33% vest only upon our receipt of distributions from CT Legacy Partners. We accrue a liability for the amounts due under these grants based on the value of CT Legacy Partners and the periodic vesting of the awards granted. Accrued payables for these awards were $1.2 million and $2.8 million as of June 30, 2015 and December 31, 2014, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES We elected to be taxed as a REIT, effective January 1, 2003, under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of June 30, 2015 and December 31, 2014, we were in compliance with all REIT requirements. During the six months ended June 30, 2015 and 2014, we recorded a current income tax provision of $350,000 and $530,000, respectively, related to our taxable REIT subsidiaries as well as various state and local taxes. We did not have any deferred tax assets or liabilities as of June 30, 2015 or December 31, 2014. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our net operating losses, or NOLs, and net capital losses, or NCLs, is generally limited to $2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service, or the IRS, with respect to the ownership of Blackstone Mortgage Trust. As of December 31, 2014, we had NOLs of $159.0 million and NCLs of $32.0 million available to be carried forward and utilized in current or future periods. If we are unable to utilize our NOLs, they will expire in 2029. If we are unable to utilize our NCLs, $31.4 million will expire in 2015, and $602,000 will expire in 2016 or later. As of June 30, 2015, tax years 2011 through 2014 remain subject to examination by taxing authorities, however no such examinations are ongoing. |
Stock-Based Incentive Plans
Stock-Based Incentive Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Incentive Plans | 12. STOCK-BASED INCENTIVE PLANS We do not have any employees as we are externally managed by our Manager. However, as of June 30, 2015, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors are compensated, in part, through the issuance of stock-based instruments. We had stock-based incentive awards outstanding under five benefit plans as of June 30, 2015: (i) our amended and restated 1997 non-employee director stock plan, or 1997 Plan; (ii) our 2007 long-term incentive plan, or 2007 Plan; (iii) our 2011 long-term incentive plan, or 2011 Plan; (iv) our 2013 stock incentive plan, or 2013 Plan; and (v) our 2013 manager incentive plan, or 2013 Manager Plan. We refer to our 1997 Plan, our 2007 Plan, and our 2011 Plan collectively as our Expired Plans and we refer to our 2013 Plan and 2013 Manager Plan collectively as our Current Plans. Our Expired Plans have expired and no new awards may be issued under them. Under our Current Plans, a maximum of 2,160,106 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of June 30, 2015, there were 748,855 shares available under the Current Plans. During the six months ended June 30, 2015, we issued 190,674 shares of restricted class A common stock under our Current Plans. These shares generally vest in quarterly installments over a three-year period, pursuant to the terms of the respective award agreements and the terms of the Current Plans. The 869,948 shares of restricted class A common stock outstanding as of June 30, 2015 will vest as follows: 227,761 shares will vest in 2015; 416,339 shares will vest in 2016; and 225,598 shares will vest in 2017. As of June 30, 2015, total unrecognized compensation cost relating to nonvested share-based compensation arrangements was $24.2 million. This cost is expected to be recognized over a weighted average period of 1.5 years from June 30, 2015. The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share: Restricted Class A Weighted-Average Balance as of December 31, 2014 919,719 $ 26.86 Granted 190,674 29.39 Vested (229,570 ) 26.95 Forfeited (10,875 ) 28.02 Balance as of June 30, 2015 869,948 $ 27.38 |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Values | 13. FAIR VALUES Assets and Liabilities Recorded at Fair Value The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value Assets Derivatives $ — $ 2,591 $ — $ 2,591 $ — $ 1,138 $ — $ 1,138 Other assets, at fair value (1) $ — $ 1,251 $ 12,696 $ 13,947 $ — $ 1,510 $ 47,507 $ 49,017 Liabilities Derivatives $ — $ 2,506 $ — $ 2,506 $ — $ — $ — $ — (1) Other assets include loans, securities, equity investments, and other receivables carried at fair value. The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Six Months Ended June 30, 2015 2014 January 1, $ 47,507 $ 54,461 Proceeds from investments (57,039 ) (326 ) Adjustments to fair value included in earnings Unrealized gain on investments at fair value 22,228 5,829 June 30, $ 12,696 $ 59,964 Our other assets include loans, securities, equity investments, and other receivables that are carried at fair value. The following describes the key assumptions used in arriving at the fair value of each of these assets as of June 30, 2015 and December 31, 2014. Securities: As of June 30, 2015, our securities, which had a book value of $11.0 million, were valued by obtaining assessments from third-party dealers. Loans: As of June 30, 2015, we had no loans carried at fair value. As of December 31, 2014, we had one hotel loan and one office loan with an aggregate fair value of $19.0 million. The discount rate used to value the hotel loan that was outstanding as of December 31, 2014, was 7% and a 100 bp discount rate increase would have resulted in a decrease in fair value of 0.3%. The discount rate used to value the office loan that was outstanding as of December 31, 2014, was 15% and a 100 bp discount rate increase would have resulted in a decrease in fair value of 1.1%. Equity investments and other receivables: As of June 30, 2015, equity investments and other receivables, which had an aggregate book value of $2.9 million, were generally valued by discounting expected cash flows. Refer to Note 2 for further discussion regarding fair value measurement. Fair Value of Financial Instruments As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the statement of financial position, for which it is practicable to estimate that value. The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands): June 30, 2015 December 31, 2014 Carrying Face Amount Fair Value Carrying Face Fair Value Financial assets Cash and cash equivalents $ 104,252 $ 104,252 $ 104,252 $ 51,810 $ 51,810 $ 51,810 Restricted cash 7,025 7,025 7,025 11,591 11,591 11,591 Loans receivable, net 10,131,323 10,169,609 10,154,374 4,428,500 4,462,897 4,462,897 Financial liabilities Secured debt agreements 7,088,738 7,088,738 7,088,738 2,040,783 2,040,783 2,040,783 Loan participations sold 635,581 635,581 635,581 499,433 499,433 499,433 Convertible notes, net 163,073 172,500 185,006 161,853 172,500 181,341 Estimates of fair value for cash, cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 14. TRANSACTIONS WITH RELATED PARTIES We are managed by our Manager pursuant to a management agreement, the initial term of which expires on December 19, 2016 and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated. As of June 30, 2015, our consolidated balance sheet included $8.1 million of accrued management and incentive fees payable to our Manager. During the six months ended June 30, 2015, we paid $12.9 million of management and incentive fees to our Manager and reimbursed our Manager for $139,000 of expenses incurred on our behalf. In addition, as of June 30, 2015, our consolidated balance sheet includes $83,333 of preferred distributions payable by CT Legacy Partners to an affiliate of our Manager. During the six months ended June 30, 2015, CT Legacy Partners made aggregate preferred distributions of $841,000 to such affiliate. On October 23, 2014, we issued 337,941 shares of restricted class A common stock with a fair value of $9.4 million as of the grant date to our Manager under the 2013 Manager Plan. On October 3, 2013, we issued 339,431 shares of restricted class A common stock with a grant date fair value of $8.5 million to our Manager under the 2013 Manager Plan. The shares of restricted class A common stock vest ratably in quarterly installments over three years from the date of issuance. During the six months ended June 30, 2015 and 2014, we recorded a non-cash expense related to these shares of $3.3 million and $1.7 million, respectively. Refer to Note 12 for further discussion of our restricted class A common stock. In conjunction with our April 2015 stock offering, affiliates of our Manager, including certain of our executive officers and directors, purchased 1,885,245 shares of our class A common at the same $30.50 per share price offered to the public. We did not, however, pay the underwriters any fees for these affiliate share purchases. Blackstone Capital Markets acted as co-manager of the offering, for which it was compensated $761,000 on terms consistent with those for other non-affiliated underwriters. On April 10, 2015, we entered into a memorandum of designation and understanding, or Designation Agreement, with GE and certain affiliates of our Manager to acquire a $4.6 billion portfolio of commercial mortgage loans from GE. Pursuant to the terms of the Designation Agreement, we were designated as the purchaser of this loan portfolio by an affiliate of our Manager that entered into a purchase and sale agreement dated as of April 10, 2015 with GE to acquire the majority of GE’s global real estate debt and equity business for an aggregate purchase price of approximately $23.0 billion. Certain transaction-related expenses incurred by us in connection with the acquisition of this loan portfolio represent an allocation of transaction expenses paid by affiliates of our Manager in connection with the overall acquisition transaction with GE. On May 8, 2015, a joint venture of CT Legacy Partners, certain affiliates of our Manager, and other non-affiliated parties, which we refer to as the Three-Pack JV, sold a hotel portfolio it owned to an investment vehicle managed by an affiliate of our Manager. We consented to the sale of the hotel portfolio by the Three-Pack JV, which sale will result in the ultimate liquidation of the Three-Pack JV and distribution of net sale proceeds to CT Legacy Partners in respect of its investment therein. As of December 31, 2014, CT Legacy Partners carried its investment in the Three-Pack JV at $18.5 million. During the six months ended June 30, 2015, we recognized a gain of $22.1 million on our consolidated statement of operations to reflect the $40.6 million of expected net sales proceeds to be received by CT Legacy Partners, of which $37.7 million has been received as of June 30, 2015. As a result of the sale transaction, certain employees of our Manager, including certain of our executive officers, will receive incentive compensation payments of an aggregate $2.7 million under the CT Legacy Partners Management Incentive Awards Plan, of which $2.5 million has already been paid, based on $40.6 million of net sale proceeds to CT Legacy Partners. See Note 10 for further discussion of the CT Legacy Partners Management Incentive Awards Plan. On May 15, 2015 we originated a $590.0 million loan, the proceeds of which were used by the borrower to repay an existing loan owned by an affiliate of our Manager. During the three months ended March 31, 2015, we originated a $320.0 million loan to a third-party. In conjunction with the origination of our loan and repayment of the pre-existing financing, an affiliate of our Manager earned a modification fee of $354,000. During the six months ended June 30, 2015, we incurred $129,000 of expenses for various administrative and capital market data services to third-party service providers that are affiliates of our Manager. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. COMMITMENTS AND CONTINGENCIES Unfunded Commitments Under Loans Receivable As of June 30, 2015, we had unfunded commitments of $791.2 million related to 72 loans receivable, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers. These future commitments will expire over the next four years. Income Tax Audits of CTIMCO The IRS and the State of New York are separately undergoing examinations of the income tax returns for the years ended December 31, 2012 and 2011 of our former subsidiary, CT Investment Management Co., LLC, or CTIMCO. The examinations are on-going, and no adjustments have been communicated to us. When we sold CTIMCO in December 2012, we provided certain indemnifications related to its operations, and any amounts determined to be owed by CTIMCO would ultimately be paid by us. As of June 30, 2015, there are no reserves recorded for the CTIMCO examinations. Litigation From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of June 30, 2015, we were not involved in any material legal proceedings. Board of Directors’ Compensation As of June 30, 2015, of the eight members of our board of directors, our five independent directors are entitled to annual compensation of $125,000 each. The other three board members, including our chairman and our chief executive officer, serve as directors with no compensation. As of June 30, 2015, the annual compensation for our directors was paid 40% in cash and 60% in the form of deferred stock units. In addition, the member of our board of directors that serves as the chairperson of the audit committee of our board of directors receives additional annual cash compensation of $12,000. Compensation to the board of directors is payable in four equal quarterly installments. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain of the assets and credit of our consolidated subsidiaries are not available to satisfy the debt or other obligations of us, our affiliates, or other entities. One of our subsidiaries, CT Legacy Partners, LLC, or CT Legacy Partners, accounts for its operations in accordance with industry-specific GAAP accounting guidance for investment companies, pursuant to which it reports its investments at fair value. We have retained this accounting treatment in consolidation and, accordingly, report the loans and other investments of CT Legacy Partners at fair value on our consolidated balance sheets. Certain reclassifications have been made in the presentation of the prior period consolidated balance sheet and statement of cash flows to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2014, we no longer had any assets or liabilities on our consolidated balance sheet attributable to any consolidated VIEs. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ from those estimates. |
Revenue Recognition | Revenue Recognition Interest income from our loans receivable is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred until the loan is advanced and is then recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. Income is then recorded on the basis of cash received until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are similarly deferred, however expenses related to loans acquired are included in general and administrative expenses as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. |
Restricted Cash | Restricted Cash We classify the cash balances held by CT Legacy Partners as restricted because, while these cash balances are available for use by CT Legacy Partners for its operations, they cannot be used by us until our allocable share is distributed from CT Legacy Partners and cannot be commingled with any of our unrestricted cash balances. |
Loans Receivable and Provision for Loan Losses | Loans Receivable and Provision for Loan Losses We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. We are required to periodically evaluate each of these loans for possible impairment. Impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. If a loan is determined to be impaired, we write down the loan through a charge to the provision for loan losses. Impairment of these loans, which are collateral dependent, is measured by comparing the estimated fair value of the underlying collateral to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. Actual losses, if any, could ultimately differ from these estimates. Our Manager performs a quarterly review of our portfolio of loans. In conjunction with this review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio, or LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: 1 - Very Low Risk 2 - Low Risk 3 - Medium Risk 4 - High Risk/Potential for Loss: 5 - Impaired/Loss Likely: During the three months ended June 30, 2015, we acquired a portfolio of loans from General Electric Capital Corporation and certain of its affiliates for a total purchase price of $4.7 billion. We allocated the aggregate purchase price between each loan based on its fair value relative to the overall portfolio, which allocation resulted in purchase discounts or premiums determined on an asset-by-asset basis. Each loan will accrete from its allocated purchase price to its principal balance over the life of the loan, consistent with the other loans in our portfolio. |
Equity Investments in Unconsolidated Subsidiaries | Equity Investments in Unconsolidated Subsidiaries Our carried interest in CT Opportunity Partners I, LP, or CTOPI, is accounted for using the equity method. CTOPI’s assets and liabilities are not consolidated into our financial statements due to our determination that (i) it is not a VIE and (ii) the other investors in CTOPI have sufficient rights to preclude consolidation by us. As such, we report our allocable percentage of the net assets of CTOPI on our consolidated balance sheets. The recognition of income from CTOPI is generally deferred until cash is collected or appropriate contingencies have been eliminated. |
Derivative Financial Instruments | Derivative Financial Instruments We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value. On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or freestanding derivative. For all derivatives other than those designated as freestanding derivatives, we formally document our hedge relationships and designation at inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. Changes in the fair value of the effective portion of our hedges are reflected in accumulated other comprehensive income (loss) on our consolidated financial statements. Changes in the fair value of the ineffective portion of our hedges are included in net income (loss). Amounts are reclassified out of accumulated other comprehensive income (loss) and into net income (loss) when the hedged item is either sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a freestanding derivative, the changes in its value are included in net income (loss). |
Repurchase Agreements | Repurchase Agreements We record investments financed with repurchase agreements as separate assets and the related borrowings under any repurchase agreements are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the repurchase agreements are reported separately on our consolidated statements of operations. |
Loan Participations Sold | Loan Participations Sold Loan participations sold represent senior interests in certain loans that we sold, however, we present such loan participations sold as liabilities because these arrangements do not qualify as sales under GAAP. These participations are non-recourse and remain on our consolidated balance sheet until the loan is repaid. The gross presentation of loan participations sold does not impact stockholders’ equity or net income. |
Convertible Notes | Convertible Notes The “Debt with Conversion and Other Options” Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity component of the convertible notes is reflected within additional paid-in capital on our consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to the convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period. |
Deferred Financing Costs | Deferred Financing Costs The deferred financing costs that are included in accrued interest receivable, prepaid expenses, and other assets on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The “Fair Value Measurements and Disclosures” Topic, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: • Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. • Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. • Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of senior management of our Manager, including our Chief Executive Officer, Chief Financial Officer, and other senior officers. Certain of our other assets are reported at fair value either (i) on a recurring basis, as of each quarter-end, or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 13. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our Manager’s estimation of fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations may require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders, and other factors deemed necessary by our Manager. We are also required by GAAP to disclose fair value information about financial instruments, that are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash on deposit and in money market funds approximates fair value. • Restricted cash: The carrying amount of restricted cash approximates fair value. • Loans receivable, net: The fair values for these loans were estimated by our Manager taking into consideration factors, including capitalization rates, leasing, occupancy rates, availability and cost of financing, exit plan, sponsorship, actions of other lenders, and indications of market value from other market participants. • Derivative financial instruments: The fair value of our foreign currency contracts and interest rates caps was valued using advice from a third party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. • Repurchase obligations: The fair values for these instruments were estimated based on the rate at which a similar credit facility would have currently priced. • Convertible notes, net: The convertible notes are actively traded and their fair values were obtained using quoted market prices for these instruments. • Loan participations sold: The fair value of these instruments were estimated based on the value of the related loan receivable asset. |
Income Taxes | Income Taxes Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 11 for additional information. |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation consists of awards issued to our Manager and certain of its employees that vest over the life of the awards as well as deferred stock units issued to certain members of our Board of Directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 12 for additional information. |
Earnings per Share | Earnings per Share Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses. Diluted earnings per share, or Diluted EPS, is determined using the treasury stock method, and is based on the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by the weighted-average number of shares of class A common stock, including restricted class A common stock and deferred stock units. Refer to Note 9 for additional discussion of earnings per share. |
Foreign Currency | Foreign Currency In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income. |
Underwriting Commissions and Offering Costs | Underwriting Commissions and Offering Costs Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. |
Segment Reporting | Segment Reporting We previously operated our business through two segments, the Loan Origination segment and the CT Legacy Portfolio segment. In the first quarter of 2015, as a result of asset resolutions in our CT Legacy Portfolio, our Manager determined that the CT Legacy Portfolio segment was no longer a distinct and separately managed business. Accordingly, we no longer present segment reporting. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” or ASU 2015-03. ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments presented in ASU 2015-03 are consistent with the accounting guidance related to debt discounts. ASU 2015-03 is effective for the first interim or annual period beginning after December 15, 2015. Early adoption is permitted, and we are currently assessing the impact of ASU 2015-03 on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” or ASU 2015-02. ASU 2015-02 amends the guidance related to accounting for the consolidation of certain legal entities. The modifications made in ASU 2015-02 impact limited partnerships and similar legal entities, the evaluation of (i) fees paid to a decision maker or a service provider as a variable interest, (ii) fee arrangements, and (iii) related parties on the primary beneficiary determination. ASU 2015-02 is effective for the first interim or annual period beginning after December 15, 2015. We have elected early adoption of ASU 2015-02 and determined there to be no material impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 2015-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016. We do not anticipate that the adoption of ASU 2014-15 will have a material impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures,” or ASU 2014-11. ASU 2014-11 amends the accounting guidance for repurchase-to-maturity transactions and repurchase agreements executed as repurchase financings, and requires additional disclosure about certain transactions by the transferor. ASU 2014-11 is effective for certain transactions that qualify for sales treatment for the first interim or annual period beginning after December 15, 2014. The new disclosure requirements for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that qualify for secured borrowing treatment is effective for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. We have historically recorded our repurchase arrangements as secured borrowings and, accordingly, the adoption of ASU 2014-11 did not have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) , |
Loans Receivable (Tables)
Loans Receivable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Overall Statistics for Loans Receivable Portfolio | The following table details overall statistics for our loans receivable portfolio as of June 30, 2015 ($ in thousands): Floating Rate Loans Fixed Rate Loans Total Number of loans 101 37 138 Principal balance $ 8,009,046 $ 2,160,563 $ 10,169,609 Net book value $ 7,969,227 $ 2,162,096 $ 10,131,323 Unfunded loan commitments (1) $ 786,419 $ 4,735 $ 791,154 Weighted-average cash coupon (2) L+4.21 % 5.33 % 4.72 % Weighted-average all-in yield (2) L+4.59 % 5.54 % 5.06 % Weighted-average maximum maturity (years) (3) 3.5 2.9 3.4 (1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next four years. (2) As of June 30, 2015, our floating rate loans were indexed to various benchmark rates, with 80% of floating rate loans indexed to USD LIBOR. In addition, $1.2 billion of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 0.59%, as of June 30, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees. Coupon and all-in yield for the total portfolio assume applicable floating benchmark rates for weighted-average calculation. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of June 30, 2015, 69% of our loans were subject to yield maintenance or other prepayment restrictions and 31% were open to repayment by the borrower without penalty. The following table details overall statistics for our loans receivable portfolio as of December 31, 2014 ($ in thousands): December 31, 2014 Number of loans 60 Principal balance $ 4,462,897 Net book value $ 4,428,500 Unfunded loan commitments (1) $ 513,229 Weighted-average cash coupon (2) L+4.36 % Weighted-average all-in yield (2) L+4.81 % Weighted-average maximum maturity (years) (3) 3.9 (1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next four years. (2) As of December 31, 2014, all of our loans were floating rate loans and were indexed to various benchmark rates, with 79% of floating rate loans indexed to USD LIBOR. In addition, 14% of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 0.31%, as of December 31, 2014. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of December 31, 2014, 85% of our loans were subject to yield maintenance, or other prepayment restrictions and 15% were open to repayment by the borrower without penalty. |
Activity Relating to Loans Receivable | Activity relating to our loans receivable was as follows ($ in thousands): Principal Deferred Fees / (1) Net Book December 31, 2014 $ 4,462,897 $ (34,397 ) $ 4,428,500 Loan purchases and fundings 6,430,243 — 6,430,243 Loan repayments and sales (723,922 ) — (723,922 ) Unrealized gain (loss) on foreign currency translation 391 286 677 Deferred fees and other items (1) — (16,373 ) (16,373 ) Amortization of fees and other items (1) — 12,198 12,198 June 30, 2015 $ 10,169,609 $ (38,286 ) $ 10,131,323 (1) Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses. |
Types of Loans in Loan Portfolio, as well as Property Type and Geographic Distribution of Properties Securing these Loans | The tables below detail the types of loans in our loan portfolio, as well as the property type and geographic distribution of the properties securing these loans ($ in thousands): June 30, 2015 December 31, 2014 Asset Type Net Book Percentage Net Book Percentage Senior loans (1) $ 9,977,017 98 % $ 4,340,586 98 % Subordinate loans (2) 154,306 2 87,914 2 $ 10,131,323 100 % $ 4,428,500 100 % Property Type Net Book Percentage Net Book Percentage Office $ 4,088,256 40 % $ 1,878,605 42 % Hotel 2,231,682 22 1,267,486 29 Manufactured housing 1,415,800 14 — — Retail 773,034 8 270,812 6 Multifamily 472,867 5 426,094 10 Condominium 352,152 3 315,686 7 Other 797,532 8 269,817 6 $ 10,131,323 100 % $ 4,428,500 100 % Geographic Location Net Book Percentage Net Book Percentage United States Northeast $ 2,275,132 22 % $ 1,383,258 31 % Southeast 1,952,500 19 657,484 15 West 1,293,416 13 628,275 14 Southwest 1,266,544 13 405,741 9 Midwest 607,835 6 335,406 8 Northwest 398,951 4 138,796 3 Subtotal 7,794,378 77 3,548,960 80 International United Kingdom 1,159,450 11 622,692 14 Canada 806,010 8 137,024 3 Germany 230,565 2 — — Spain 79,875 1 86,289 2 Netherlands 61,045 1 33,535 1 Subtotal 2,336,945 23 879,540 20 Total $ 10,131,323 100 % $ 4,428,500 100 % (1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans. (2) Includes mezzanine loans and subordinate interests in mortgages. |
Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings | The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands): June 30, 2015 December 31, 2014 Risk Rating Number Principal Net Number Principal Net 1 9 $ 970,624 $ 963,451 5 $ 209,961 $ 209,112 2 87 6,626,108 6,601,541 44 3,339,972 3,313,906 3 42 2,572,877 2,566,331 11 912,964 905,482 4 - 5 — — — — — — 138 $ 10,169,609 $ 10,131,323 60 $ 4,462,897 $ 4,428,500 |
Equity Investments in Unconso25
Equity Investments in Unconsolidated Subsidiaries (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Activity Relating to Our Equity Investments in Unconsolidated Subsidiaries | Activity relating to our equity investments in unconsolidated subsidiaries was as follows ($ in thousands): CTOPI Total as of December 31, 2014 $ 10,604 Distributions (5,007 ) Income allocation (1) 1,809 Total as of June 30, 2015 $ 7,406 (1) In instances where we have not received cash or all appropriate contingencies have not been eliminated, we have deferred the recognition of promote revenue allocated to us from CTOPI in respect of our carried interest in CTOPI, and recorded an offsetting liability as a component of accounts payable, accrued expenses, and other liabilities on our consolidated balance sheets. |
Secured Debt Agreements (Tables
Secured Debt Agreements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Debt Agreements | The following table details our secured debt agreements ($ in thousands): Secured Debt Agreements June 30, 2015 December 31, 2014 Revolving repurchase facilities $ 2,636,822 $ 2,040,783 GE portfolio acquisition facility 4,038,165 — Asset-specific repurchase agreements 413,751 324,553 $ 7,088,738 $ 2,365,336 |
Revolving Repurchase Facilities | The following table details our revolving repurchase facilities as of June 30, 2015 ($ in thousands): Maximum Facility Size (1) Collateral Assets (2) Repurchase Borrowings Lender Potential Outstanding Available (3) Bank of America $ 750,000 $ 815,125 $ 642,169 $ 606,535 $ 35,634 JP Morgan (4) 753,348 832,222 653,830 566,063 87,767 Wells Fargo 1,000,000 887,926 689,679 549,858 139,821 MetLife 750,000 556,409 433,445 364,153 69,292 Citibank 500,000 575,506 439,239 362,562 76,677 Morgan Stanley (5) 393,450 243,383 190,850 187,651 3,199 $ 4,146,798 $ 3,910,571 $ 3,049,212 $ 2,636,822 $ 412,390 (1) Maximum facility size represents the total amount of borrowings in each repurchase agreement, however these borrowings are only available to us once sufficient collateral assets have been pledged under each facility at the discretion of the lender. (2) Represents the principal balance of the collateral assets. (3) Potential borrowings represent the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each revolving credit facility. (4) The JP Morgan maximum facility size is composed of a $250.0 million facility and a £153.0 million ($240.8 million) facility, and $262.5 million related solely to a specific asset with a repurchase date of January 9, 2018. (5) The Morgan Stanley maximum facility size represents a £250.0 million ($393.5 million) facility. |
Summary of Key Terms of Revolving Repurchase Facilities | The following table outlines the key terms of our revolving repurchase facilities: Lender Rate (1)(2) Guarantee (1)(3) Advance Rate (1) Margin Call (4) Term/Maturity Bank of America L+1.69 % 50% 79.5% Collateral marks only May 21, 2019 (5) JP Morgan L+1.81 % 25% 80.3% Collateral marks only Term matched (6)(7) Wells Fargo L+1.80 % 25% 79.2% Collateral marks only Term matched (6) MetLife L+1.80 % 50% 77.9% Collateral marks only February 24, 2021 (8) Citibank L+1.93 % 25% 76.7% Collateral marks only Term matched (6) Morgan Stanley L+2.34 % 25% 78.4% Collateral marks only March 3, 2017 (1) Represents a weighted-average based on collateral assets pledged and borrowings outstanding as of June 30, 2015. (2) Represents weighted-average cash coupon on borrowings outstanding as of June 30, 2015. As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. (3) Other than amounts guaranteed based on specific collateral asset types, borrowings under our revolving repurchase facilities are not recourse to us. (4) Margin call provisions under our revolving repurchase facilities do not permit valuation adjustments based on capital markets activity, and are limited to collateral-specific credit marks. (5) Includes two one-year extension options which may be exercised at our sole discretion. (6) These revolving repurchase facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset. (7) Borrowings denominated in British pound sterling under this facility mature on January 7, 2018. (8) Includes five one-year extension options which may be exercised at our sole discretion. |
Summary of Statistics for Asset-Specific Repurchase Agreements | The following table details statistics for our asset-specific repurchase agreements ($ in thousands): June 30, 2015 December 31, 2014 Repurchase Collateral Repurchase Collateral Number of loans 4 5 3 4 Principal balance $ 413,751 $ 548,837 $ 324,553 $ 429,197 Weighted-average cash coupon (1) L+2.75 % L+5.21 % L+2.68 % L+5.07 % Weighted-average cost / all-in yield (1) L+3.19 % L+5.70 % L+3.16 % L+5.53 % (1) As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, cost / all-in yield includes the amortization of deferred origination fees / financing costs. |
Loan Participations Sold (Table
Loan Participations Sold (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Statistics for Loan Participations Sold | The following table details statistics for our loan participations sold ($ in thousands): June 30, 2015 December 31, 2014 Participations Underlying Participations Underlying Number of loans 4 4 4 4 Principal balance $ 635,581 $ 786,511 $ 499,433 $ 635,701 Weighted-average cash coupon (1) L+2.39 % L+4.03 % L+2.51 % L+4.10 % Weighted-average all-in cost / yield (1) L+2.64 % L+4.26 % L+2.71 % L+4.71 % (1) As of June 30, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, all-in cost / yield includes the amortization of deferred origination fees / financing costs. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk | As of June 30, 2015, we had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (notional amount in thousands): Interest Rate Derivatives Number of Notional Strike Index Wtd. Avg. Interest Rate Caps 26 $ 1,097,632 2% USD LIBOR 1.8 Interest Rate Caps 11 C$ 550,589 2% CDOR 1.7 Interest Rate Caps 1 € 152,710 2% EURIBOR 1.5 Interest Rate Caps 1 £ 15,142 2% GBP LIBOR 1.8 |
Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk | As of June 30, 2015, we had the following outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands): Foreign Currency Derivatives Number of Notional Sell CAD Forward 2 C$ 204,261 Sell GBP Forward 2 £ 64,000 Sell EUR Forward 2 € 51,000 |
Summary of Outstanding Non-designated Hedges | As of June 30, 2015, we had the following outstanding non-designated hedges (notional amount in thousands): Interest Rate Derivatives Number of Notional Interest Rate Caps 2 $ 42,240 Interest Rate Caps 1 £ 619 |
Summary of Fair Value of Derivative Financial Instruments | The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an (1) Fair Value of Derivatives in a (2) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Derivatives designated as hedging instruments: Interest rate caps $ 919 $ — $ — $ — Foreign exchange contracts 1,672 1,138 2,506 — Total derivatives designated as hedging instruments $ 2,591 $ 1,138 $ 2,506 $ — (1) Included in accrued interest receivable, prepaid expenses, and other assets in our consolidated balance sheet. (2) Included in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheet. |
Summary of Effect of Derivative Financial Instruments on Consolidated Statement of Operations | The following table presents the effect of our derivative financial instruments on our consolidated statement of operations for the three and six months ended June 30, 2015 ($ in thousands): Amount of Gain (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Income (Effective Portion) Derivatives in Hedging Relationships Three Months Six Months Three Months Six Months Cash Flow Hedges Interest rate caps $ 823 $ 823 Interest Expense $ — $ — Net Investment Hedges Foreign exchange contracts 2,485 (851 ) Gain (Loss) on Sale of Subsidiary — — Total $ 3,308 $ (28 ) $ — $ — (1) During the six months ended June 30, 2015, we received net cash settlements of $2.8 million on our foreign currency forward contracts. Those amounts are included as a component of Other Comprehensive Income on our consolidated balance sheet. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of Class A Common Stock Issuances | The following table details our issuance of class A common stock during the six months ended June 30, 2015 ($ in thousands, except share and per share data): Class A Common Stock Offerings 2015 Total / Wtd. Avg. April 2015 May 2015 (3) June 2015 Shares issued 23,000,000 280,025 11,500,000 34,780,025 Share issue price (1) $ 29.75 $ 29.97 $ 29.42 $ 29.64 Net proceeds (2) $ 683,727 $ 7,895 $ 337,935 $ 1,029,557 (1) Represents price per share paid by the underwriters or sales agents, as applicable, after underwriting or sales discounts and commissions. (2) Net proceeds represents proceeds received from the underwriters less applicable transaction costs. (3) Issuance represents 280,025 shares issued over a five-day period in May 2015 under our at-the-market program, with a weighted average issue price of $29.97, and generating net proceeds of $7.9 million after allocable expenses. |
Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units | The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units: Six Months Ended June 30, Common Stock Outstanding (1) 2015 2014 Beginning balance 58,388,808 29,602,884 Issuance of class A common stock 34,780,298 18,975,001 Issuance of restricted class A common stock, net 179,799 — Issuance of deferred stock units 10,665 10,009 Ending balance 93,359,570 48,587,894 (1) Deferred stock units held by members of our board of directors totalled 129,584 and 106,188 as of June 30, 2015 and 2014, respectively. |
Schedule of Basic and Diluted Earnings Per Share, or EPS, Based on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding | The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding for the indicated periods ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income (1) $ 29,284 $ 33,466 $ 64,679 $ 46,531 Weighted-average shares outstanding, basic and diluted 80,940,535 47,977,813 69,820,061 43,000,242 Per share amount, basic and diluted $ 0.36 $ 0.70 $ 0.93 $ 1.08 (1) Represents net income attributable to Blackstone Mortgage Trust, Inc. |
Other Expenses (Tables)
Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of General and Administrative Expenses | General and administrative expenses consisted of the following ($ in thousands): Three Months Ended Six Months Ended 2015 2014 2015 2014 Professional services $ 777 $ 648 $ 1,476 $ 1,098 Operating and other costs 554 469 1,112 1,031 GE transaction costs 9,013 — 9,213 — Subtotal 10,344 1,117 11,801 2,129 Non-cash and CT Legacy Portfolio compensation expenses Management incentive awards plan - CTOPI (1) 828 11,190 2,605 11,190 Management incentive awards plan - CT Legacy Partners (2) 1,024 416 2,054 552 Restricted class A common stock earned 3,303 2,289 6,506 4,029 Director stock-based compensation 94 94 188 188 Subtotal 5,249 13,989 11,353 15,959 Total BXMT expenses 15,593 15,106 23,154 18,088 Expenses of consolidated subsidiaries 105 250 205 466 Total general and administrative expenses $ 15,698 $ 15,356 $ 23,359 $ 18,554 (1) Represents the portion of CTOPI promote revenue accrued under compensation awards. See Note 4 for further discussion. (2) Represents the accrual of amounts payable under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan. |
Stock-Based Incentive Plans (Ta
Stock-Based Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share | The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share: Restricted Class A Weighted-Average Balance as of December 31, 2014 919,719 $ 26.86 Granted 190,674 29.39 Vested (229,570 ) 26.95 Forfeited (10,875 ) 28.02 Balance as of June 30, 2015 869,948 $ 27.38 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value Assets Derivatives $ — $ 2,591 $ — $ 2,591 $ — $ 1,138 $ — $ 1,138 Other assets, at fair value (1) $ — $ 1,251 $ 12,696 $ 13,947 $ — $ 1,510 $ 47,507 $ 49,017 Liabilities Derivatives $ — $ 2,506 $ — $ 2,506 $ — $ — $ — $ — (1) Other assets include loans, securities, equity investments, and other receivables carried at fair value. |
Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs | The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands): Six Months Ended June 30, 2015 2014 January 1, $ 47,507 $ 54,461 Proceeds from investments (57,039 ) (326 ) Adjustments to fair value included in earnings Unrealized gain on investments at fair value 22,228 5,829 June 30, $ 12,696 $ 59,964 |
Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments | The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands): June 30, 2015 December 31, 2014 Carrying Face Amount Fair Value Carrying Face Fair Value Financial assets Cash and cash equivalents $ 104,252 $ 104,252 $ 104,252 $ 51,810 $ 51,810 $ 51,810 Restricted cash 7,025 7,025 7,025 11,591 11,591 11,591 Loans receivable, net 10,131,323 10,169,609 10,154,374 4,428,500 4,462,897 4,462,897 Financial liabilities Secured debt agreements 7,088,738 7,088,738 7,088,738 2,040,783 2,040,783 2,040,783 Loan participations sold 635,581 635,581 635,581 499,433 499,433 499,433 Convertible notes, net 163,073 172,500 185,006 161,853 172,500 181,341 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015USD ($)Segment | Dec. 31, 2014USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets attributable to consolidated VIEs | $ 0 | |
Liabilities attributable to consolidated VIEs | $ 0 | |
Income accrual, description | Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of our Manager, recovery of income and principal becomes doubtful. | |
Cash and cash equivalents, description | Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. | |
Number of operating segment | Segment | 2 | |
General Electrical Capital Corporation [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Purchase price of Loan Portfolio | $ 4,700,000,000 | |
Cash and Cash Equivalents [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Expected loss | $ 0 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Apr. 10, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan impairments, nonaccrual loans or loans in maturity | $ 0 | $ 0 | |
General Electrical Capital Corporation [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchase price of Loan Portfolio | 4,700,000,000 | ||
Loan Purchase Commitments [Member] | Commercial Portfolio Segment [Member] | General Electrical Capital Corporation [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Portfolio of loans acquired | 4,900,000,000 | $ 4,600,000,000 | |
Purchase price of Loan Portfolio | 4,700,000,000 | $ 23,000,000,000 | |
Unfunded commitments assumed | $ 202,100,000 |
Loans Receivable - Overall Stat
Loans Receivable - Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)SecurityLoan | Dec. 31, 2014USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 138 | 60 |
Principal Balance | $ 10,169,609 | $ 4,462,897 |
Net book value | 10,131,323 | $ 4,428,500 |
Unfunded loan commitments | $ 791,200 | |
Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 138 | 60 |
Principal Balance | $ 10,169,609 | $ 4,462,897 |
Net book value | 10,131,323 | 4,428,500 |
Unfunded loan commitments | $ 791,154 | $ 513,229 |
Weighted-average maximum maturity (years) | 3 years 4 months 24 days | 3 years 10 months 24 days |
Loans Receivable [Member] | LIBOR [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted-average cash coupon, rate | 4.72% | 4.36% |
Weighted-average all-in yield, rate | 5.06% | 4.81% |
Floating Rate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 101 | |
Principal Balance | $ 8,009,046 | |
Net book value | 7,969,227 | |
Unfunded loan commitments | $ 786,419 | |
Weighted-average cash coupon | L+4.21 % | |
Weighted-average all-in yield | L+4.59 % | |
Weighted-average maximum maturity (years) | 3 years 6 months | |
Fixed Rate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 37 | |
Principal Balance | $ 2,160,563 | |
Net book value | 2,162,096 | |
Unfunded loan commitments | $ 4,735 | |
Weighted-average maximum maturity (years) | 2 years 10 months 24 days | |
Fixed Rate Loans [Member] | LIBOR [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted-average cash coupon, rate | 5.33% | |
Weighted-average all-in yield, rate | 5.54% |
Loans Receivable - Overall St36
Loans Receivable - Overall Statistics for Loans Receivable Portfolio (Parenthetical) (Detail) - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments expiration period | 4 years | |
Percentage of loans receivable by type | 14.00% | |
Floating rate loans | $ 1.2 | |
Average floor rate | 0.59% | 0.31% |
Percentage of loans subject to yield maintenance, or other prepayment restrictions | 69.00% | 85.00% |
Percentage of loans open to repayment by borrower without penalty | 31.00% | 15.00% |
USD LIBOR [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of loans receivable by type | 80.00% | 79.00% |
Unfunded Commitments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments expiration period | 4 years | 4 years |
Loans Receivable - Activity Rel
Loans Receivable - Activity Relating to Loans Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
December 31, 2014 | $ 4,428,500 | |||
Unrealized gain (loss) on foreign currency translation | $ 15,732 | $ 1,894 | (4,336) | $ 1,930 |
June 30, 2015 | 10,131,323 | 10,131,323 | ||
Principal Balance [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
December 31, 2014 | 4,462,897 | |||
Loan purchases and fundings | 6,430,243 | |||
Loan repayments and sales | 723,922 | |||
Unrealized gain (loss) on foreign currency translation | 391 | |||
June 30, 2015 | 10,169,609 | 10,169,609 | ||
Deferred Fees/Other Items [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
December 31, 2014 | (34,397) | |||
Unrealized gain (loss) on foreign currency translation | (286) | |||
Deferred fees and other items | (16,373) | |||
Amortization of fees and other items | 12,198 | |||
June 30, 2015 | (38,286) | (38,286) | ||
Net Book Value [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
December 31, 2014 | 4,428,500 | |||
Loan purchases and fundings | 6,430,243 | |||
Loan repayments and sales | 723,922 | |||
Unrealized gain (loss) on foreign currency translation | 677 | |||
Deferred fees and other items | 16,373 | |||
Amortization of fees and other items | (12,198) | |||
June 30, 2015 | $ 10,131,323 | $ 10,131,323 |
Loans Receivable - Types of Loa
Loans Receivable - Types of Loans in Loan Portfolio, as well as Property Type and Geographic Distribution of Properties Securing these Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 10,131,323 | $ 4,428,500 |
Percentage of Book Value | 100.00% | 100.00% |
Senior Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 9,977,017 | $ 4,340,586 |
Percentage of Book Value | 98.00% | 98.00% |
Subordinate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 154,306 | $ 87,914 |
Percentage of Book Value | 2.00% | 2.00% |
Loans Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 10,131,323 | $ 4,428,500 |
Percentage of Book Value | 100.00% | 100.00% |
Office [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 4,088,256 | $ 1,878,605 |
Percentage of Book Value | 40.00% | 42.00% |
Hotel [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 2,231,682 | $ 1,267,486 |
Percentage of Book Value | 22.00% | 29.00% |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 472,867 | $ 426,094 |
Percentage of Book Value | 5.00% | 10.00% |
Condominium [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 352,152 | $ 315,686 |
Percentage of Book Value | 3.00% | 7.00% |
Retail [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 773,034 | $ 270,812 |
Percentage of Book Value | 8.00% | 6.00% |
Manufactured Housing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 1,415,800 | |
Percentage of Book Value | 14.00% | |
Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 797,532 | $ 269,817 |
Percentage of Book Value | 8.00% | 6.00% |
United States Northeast [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 2,275,132 | $ 1,383,258 |
Percentage of Book Value | 22.00% | 31.00% |
United States West [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 1,293,416 | $ 628,275 |
Percentage of Book Value | 13.00% | 14.00% |
United States Southeast [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 1,952,500 | $ 657,484 |
Percentage of Book Value | 19.00% | 15.00% |
United States Northwest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 398,951 | $ 138,796 |
Percentage of Book Value | 4.00% | 3.00% |
United States Midwest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 607,835 | $ 335,406 |
Percentage of Book Value | 6.00% | 8.00% |
United States Southwest [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 1,266,544 | $ 405,741 |
Percentage of Book Value | 13.00% | 9.00% |
United States [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 7,794,378 | $ 3,548,960 |
Percentage of Book Value | 77.00% | 80.00% |
United Kingdom [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 1,159,450 | $ 622,692 |
Percentage of Book Value | 11.00% | 14.00% |
Canada [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 806,010 | $ 137,024 |
Percentage of Book Value | 8.00% | 3.00% |
Spain [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 79,875 | $ 86,289 |
Percentage of Book Value | 1.00% | 2.00% |
Netherlands [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 61,045 | $ 33,535 |
Percentage of Book Value | 1.00% | 1.00% |
Germany [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 230,565 | |
Percentage of Book Value | 2.00% | |
International [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net book value | $ 2,336,945 | $ 879,540 |
Percentage of Book Value | 23.00% | 20.00% |
Loans Receivable - Principal Ba
Loans Receivable - Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)SecurityLoan | Dec. 31, 2014USD ($)SecurityLoan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 138 | 60 |
Principal Balance | $ 10,169,609 | $ 4,462,897 |
Net book value | $ 10,131,323 | $ 4,428,500 |
Risk Rating One [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 9 | 5 |
Principal Balance | $ 970,624 | $ 209,961 |
Net book value | $ 963,451 | $ 209,112 |
Risk Rating Two [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 87 | 44 |
Principal Balance | $ 6,626,108 | $ 3,339,972 |
Net book value | $ 6,601,541 | $ 3,313,906 |
Risk Rating 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 42 | 11 |
Principal Balance | $ 2,572,877 | $ 912,964 |
Net book value | $ 2,566,331 | $ 905,482 |
Equity Investments in Unconso40
Equity Investments in Unconsolidated Subsidiaries - Activity Relating to Our Equity Investments in Unconsolidated Subsidiaries (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Beginning Balance | $ 10,604 |
Ending Balance | 7,406 |
CTOPI Carried Interest [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Beginning Balance | 10,604 |
Distributions | (5,007) |
Income allocation | 1,809 |
Ending Balance | $ 7,406 |
Equity Investments in Unconso41
Equity Investments in Unconsolidated Subsidiaries - Additional Information (Detail) - CT Opportunity Partners I, LP [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jan. 31, 2011 | |
Schedule of Equity Method Investments [Line Items] | ||
Carried interest revenue, percentage of fund's profit | 17.70% | |
Preferred return | 9.00% | |
Return of capital to partners | 100.00% | |
Carried interest revenue | $ 7.4 | |
Promote income recognized | $ 5.7 | |
Percentage of carried interest distributions pool for employees | 45.00% | |
Percentage of pool vested | 68.00% | |
Description of incentive management fee grants to employees vesting schedule | Approximately 68% of the pool is two-thirds vested as of June 30, 2015, with the remainder contingent on continued employment with an affiliate of our Manager and upon our receipt of promote distributions from CTOPI. The remaining 32% of the pool is fully vested as a result of an acceleration event. During the six months ended June 30, 2015, we accrued $2.5 million under the CTOPI incentive plan, which amount was recognized as a component of general and administrative expenses in our consolidated statement of operations. | |
Accrued expenses for incentive plan | $ 2.5 | |
Acceleration Event [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Fully vested pool, percentage | 32.00% |
Secured Debt Agreements - Sched
Secured Debt Agreements - Schedule of Secured Debt Agreements (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Secured debt agreements borrowings outstanding | $ 7,088,738 | $ 2,365,336 |
Revolving Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Secured debt agreements borrowings outstanding | 2,636,822 | 2,040,783 |
GE Portfolio Acquisition Facility [Member] | ||
Debt Instrument [Line Items] | ||
Secured debt agreements borrowings outstanding | 4,038,165 | |
Asset-Specific Repurchase Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Secured debt agreements borrowings outstanding | $ 413,751 | $ 324,553 |
Secured Debt Agreements - Addit
Secured Debt Agreements - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)FacilityAssets | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from line of credit | $ 256,000,000 | ||
Secured debt agreements borrowings outstanding | $ 7,088,738,000 | 7,088,738,000 | $ 2,365,336,000 |
Covenants, minimum tangible net worth | $ 1,900,000,000 | $ 1,900,000,000 | |
Covenants, percentage of tangible assets on cash proceeds from equity issuances | 75.00% | ||
Covenants, percentage of recourse indebtedness | 5.00% | 5.00% | |
Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Covenants, EBITDA to fixed charges | 1.40% | ||
Covenants, indebtedness to total assets | 83.33% | 83.33% | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Covenants, EBITDA to fixed charges | 1.00% | ||
Covenants, minimum cash liquidity amount | $ 10,000,000 | $ 10,000,000 | |
Asset-Specific Repurchase Agreements [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from line of credit | 103,100,000 | ||
Weighted-average outstanding balance | $ 375,500,000 | ||
Closing of asset specific repurchase facilities | Assets | 1 | ||
Revolving Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Number of revolving repurchase facilities closed | Facility | 3 | ||
Proceeds from line of credit | $ 762,500,000 | ||
Aggregate borrowings | 2,600,000,000 | $ 2,600,000,000 | |
Weighted-average initial maturity | 1 year 8 months 12 days | ||
Weighted-average outstanding balance | $ 2,200,000,000 | ||
Approximate credit line amount | 3,049,212,000 | 3,049,212,000 | |
Amount available for potential future fundings of loan | 412,390,000 | 412,390,000 | |
Secured debt agreements borrowings outstanding | 2,636,822,000 | 2,636,822,000 | $ 2,040,783,000 |
Current borrowing capacity | 2,636,822,000 | $ 2,636,822,000 | |
Revolving Repurchase Facilities [Member] | Wells Fargo [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation, description | L+1.80 % | ||
LIBOR basis spread on debt obligation | 1.80% | ||
Approximate credit line amount | 689,679,000 | $ 689,679,000 | |
Amount available for potential future fundings of loan | 139,821,000 | $ 139,821,000 | |
Borrowings maturity term | Term matched | ||
Current borrowing capacity | 549,858,000 | $ 549,858,000 | |
GE Portfolio Acquisition Facility [Member] | |||
Debt Instrument [Line Items] | |||
Approximate credit line, advanced upon closing amount | 4,000,000,000 | 4,000,000,000 | |
Amount available for potential future fundings of loan | 162,000,000 | 162,000,000 | |
Secured debt agreements borrowings outstanding | 4,038,165,000 | 4,038,165,000 | |
GE Portfolio Acquisition Facility [Member] | Sequential Repay Advance [Member] | |||
Debt Instrument [Line Items] | |||
Secured debt agreements borrowings outstanding | 236,700,000 | 236,700,000 | |
Current borrowing capacity | $ 237,200,000 | $ 237,200,000 | |
Percentage of additional advance | 5.00% | 5.00% | |
Term of maturity date | 1 year | ||
Sequential Repay Advance, percentage of guarantee rate | 100.00% | 100.00% | |
GE Portfolio Acquisition Facility [Member] | Wells Fargo [Member] | |||
Debt Instrument [Line Items] | |||
Approximate credit line amount | $ 4,200,000,000 | $ 4,200,000,000 | |
GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average rate | 80.00% | ||
Maturity date | May 20, 2020 | ||
Borrowings maturity term | The asset-specific borrowings are term matched to the underlying collateral assets with an outside maturity date of May 20, 2020, which may be extended pursuant to two one-year extension options. | ||
Secured debt agreements borrowings outstanding | $ 3,800,000,000 | $ 3,800,000,000 | |
GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of guarantee rate | 25.00% | 25.00% | |
Guarantee of outstanding borrowings | $ 250,000,000 | ||
Weighted-Average Cash Coupon [Member] | Revolving Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation, description | LIBOR plus 1.83% per annum | ||
LIBOR basis spread on debt obligation | 1.83% | ||
Weighted-Average All-in Cost of Credit [Member] | Revolving Repurchase Facilities [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation, description | LIBOR plus 2.05% per annum | ||
LIBOR basis spread on debt obligation | 2.05% | ||
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation, description | The asset-specific borrowings are currency matched to the collateral assets and accrue interest at a rate equal to the sum of (i) the applicable base rate plus (ii) a margin of 1.75%, which will increase to 1.80% and 1.85% in year four and year five, respectively. | ||
LIBOR basis spread on debt obligation | 1.75% | ||
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member] | Year Four [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation | 1.80% | ||
Base Rate [Member] | GE Portfolio Acquisition Facility [Member] | Asset Specific Borrowings [Member] | Primary [Member] | Year Five [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation | 1.85% | ||
LIBOR [Member] | GE Portfolio Acquisition Facility [Member] | Sequential Repay Advance [Member] | |||
Debt Instrument [Line Items] | |||
LIBOR basis spread on debt obligation, description | Accrue interest at a rate equal to the sum of (i) 30-day LIBOR plus (ii) a margin of 3.10%. | ||
LIBOR basis spread on debt obligation | 3.10% |
Secured Debt Agreements - Revol
Secured Debt Agreements - Revolving Repurchase Facilities (Detail) - Revolving Repurchase Facilities [Member] | Jun. 30, 2015USD ($) |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | $ 4,146,798,000 |
Collateral Assets | 3,910,571,000 |
Potential | 3,049,212,000 |
Repurchase Borrowings Outstanding | 2,636,822,000 |
Available | 412,390,000 |
Wells Fargo [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 1,000,000,000 |
Collateral Assets | 887,926,000 |
Potential | 689,679,000 |
Repurchase Borrowings Outstanding | 549,858,000 |
Available | 139,821,000 |
JP Morgan [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 753,348,000 |
Collateral Assets | 832,222,000 |
Potential | 653,830,000 |
Repurchase Borrowings Outstanding | 566,063,000 |
Available | 87,767,000 |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 750,000,000 |
Collateral Assets | 815,125,000 |
Potential | 642,169,000 |
Repurchase Borrowings Outstanding | 606,535,000 |
Available | 35,634,000 |
MetLife [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 750,000,000 |
Collateral Assets | 556,409,000 |
Potential | 433,445,000 |
Repurchase Borrowings Outstanding | 364,153,000 |
Available | 69,292,000 |
Citibank [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 500,000,000 |
Collateral Assets | 575,506,000 |
Potential | 439,239,000 |
Repurchase Borrowings Outstanding | 362,562,000 |
Available | 76,677,000 |
Morgan Stanley [Member] | |
Line of Credit Facility [Line Items] | |
Maximum Facility Size | 393,450,000 |
Collateral Assets | 243,383,000 |
Potential | 190,850,000 |
Repurchase Borrowings Outstanding | 187,651,000 |
Available | $ 3,199,000 |
Secured Debt Agreements - Rev45
Secured Debt Agreements - Revolving Repurchase Facilities (Parenthetical) (Detail) - Jun. 30, 2015 | USD ($) | GBP (£) |
JP Morgan [Member] | Revolving Repurchase Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Facility size | $ 240,800,000 | £ 153,000,000 |
Facility repurchase date | Jan. 9, 2018 | |
JP Morgan [Member] | Revolving Repurchase Facilities [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Facility size | $ 250,000,000 | |
JP Morgan [Member] | Asset-Specific Repurchase Agreements [Member] | ||
Line of Credit Facility [Line Items] | ||
Facility size | 262,500,000 | |
Morgan Stanley [Member] | Revolving Repurchase Facilities [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Facility size | $ 393,500,000 | £ 250,000,000 |
Secured Debt Agreements - Summa
Secured Debt Agreements - Summary of Key Terms of Revolving Repurchase Facilities (Detail) - 6 months ended Jun. 30, 2015 - Revolving Repurchase Facilities [Member] | Total |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+1.69 % |
Rate | 1.69% |
Guarantee | 50.00% |
Advance Rate | 79.50% |
Margin Call | Collateral marks only |
Term/Maturity | May 21, 2019 |
JP Morgan [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+1.81 % |
Rate | 1.81% |
Guarantee | 25.00% |
Advance Rate | 80.30% |
Margin Call | Collateral marks only |
Term/Maturity | Term matched |
Wells Fargo [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+1.80 % |
Rate | 1.80% |
Guarantee | 25.00% |
Advance Rate | 79.20% |
Margin Call | Collateral marks only |
Term/Maturity | Term matched |
MetLife [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+1.80 % |
Rate | 1.80% |
Guarantee | 50.00% |
Advance Rate | 77.90% |
Margin Call | Collateral marks only |
Term/Maturity | February 24, 2021 |
Citibank [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+1.93 % |
Rate | 1.93% |
Guarantee | 25.00% |
Advance Rate | 76.70% |
Margin Call | Collateral marks only |
Term/Maturity | Term matched |
Morgan Stanley [Member] | |
Line of Credit Facility [Line Items] | |
LIBOR basis spread on debt obligation | L+2.34 % |
Rate | 2.34% |
Guarantee | 25.00% |
Advance Rate | 78.40% |
Margin Call | Collateral marks only |
Term/Maturity | March 3, 2017 |
Secured Debt Agreements - Sum47
Secured Debt Agreements - Summary of Key Terms of Revolving Repurchase Facilities (Parenthetical) (Detail) - Revolving Repurchase Facilities [Member] | 6 Months Ended |
Jun. 30, 2015 | |
Line of Credit Facility [Line Items] | |
Facility mature date | Jan. 7, 2018 |
Bank of America [Member] | |
Line of Credit Facility [Line Items] | |
Maturity period | Includes two one-year extension options which may be exercised at our sole discretion. |
MetLife [Member] | |
Line of Credit Facility [Line Items] | |
Maturity period | Includes five one-year extension options which may be exercised at our sole discretion. |
Secured Debt Agreements - Sum48
Secured Debt Agreements - Summary of Statistics for Asset-Specific Repurchase Agreements (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)Loans | Dec. 31, 2014USD ($)Loans | |
Assets Sold Under Agreements To Repurchase Carrying Amounts [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Number of loans | Loans | 4 | 3 |
Principal balance | $ 413,751 | $ 324,553 |
Weighted-average cash coupon | L+2.75 % | L+2.68 % |
Weighted-average cost / all-in yield | L+3.19 % | L+3.16 % |
Assets Sold Under Agreements To Repurchase Carrying Amounts [Member] | LIBOR [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Weighted-average cash coupon | 2.75% | 2.68% |
Weighted-average cost / all-in yield | 3.19% | 3.16% |
Collateral Assets [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Number of loans | Loans | 5 | 4 |
Principal balance | $ 548,837 | $ 429,197 |
Weighted-average cash coupon | L+5.21 % | L+5.07 % |
Weighted-average cost / all-in yield | L+5.70 % | L+5.53 % |
Collateral Assets [Member] | LIBOR [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Weighted-average cash coupon | 5.21% | 5.07% |
Weighted-average cost / all-in yield | 5.70% | 5.53% |
Loan Participations Sold - Addi
Loan Participations Sold - Additional Information (Detail) - 6 months ended Jun. 30, 2015 $ in Millions | USD ($)Participants |
Debt Disclosure [Abstract] | |
Number of senior loan participation sold | Participants | 1 |
Proceeds from line of credit | $ 256 |
Loan Participations Sold - Summ
Loan Participations Sold - Summary of Statistics for Loan Participations Sold (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)Participants | Dec. 31, 2014USD ($)Participants | |
Participating Mortgage Loans [Line Items] | ||
Participations Sold, Number of loans | Participants | 4 | 4 |
Principal balance, Participations Sold | $ 635,581 | $ 499,433 |
Weighted-average cash coupon, Participations Sold | L+2.39 % | |
Weighted-average all-in cost / yield, Participations Sold | L+2.64 % | |
Underlying Loans, Number of loans | Participants | 4 | 4 |
Principal balance, Underlying Loans | $ 786,511 | $ 635,701 |
Weighted-average cash coupon, Underlying Loans | L+4.03 % | |
Weighted-average all-in cost / yield, Underlying Loans | L+4.26 % | |
LIBOR [Member] | ||
Participating Mortgage Loans [Line Items] | ||
Weighted-average cash coupon, Participations Sold, rate | 2.39% | 2.51% |
Weighted-average all-in cost / yield, Participations Sold | 2.64% | 2.71% |
Weighted-average cash coupon, Underlying Loans, rate | 4.03% | 4.10% |
Weighted-average all-in cost / yield, Underlying Loans | 4.26% | 4.71% |
Convertible Notes, Net - Additi
Convertible Notes, Net - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Convertible notes, net | $ 163,073,000 | $ 161,853,000 | ||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Senior Notes, Principal amount | $ 172,500,000 | |||
Convertible Senior Notes, Interest rate | 5.25% | |||
Maturity date | Dec. 1, 2018 | |||
Convertible Senior Notes, Interest rate including underwriter discounts | 5.87% | |||
Description of Convertible Notes conversion | The Convertible Notes are convertible at the holders' option into shares of our class A common stock, only under specific circumstances, prior to the close of business on August 31, 2018, at the applicable conversion rate in effect on the conversion date. | |||
Discount upon issuance of Convertible Notes | $ 13,200,000 | $ 9,400,000 | ||
Debt issuance costs | $ 4,100,000 | |||
Convertible Notes, assumed effective interest rate | 6.50% | |||
Convertible Senior Notes, Interest rate including amortization of discount upon issuance | 7.16% | |||
Total interest on convertible notes | 5,800,000 | $ 5,700,000 | ||
Interest on convertible notes related to cash coupon | 4,500,000 | 4,500,000 | ||
Interest on convertible notes related to amortization of discount and certain issuance costs | 1,300,000 | $ 1,200,000 | ||
Convertible Senior Notes [Member] | Class A Common Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Notes, debt conversion, common stock issued | 34.8943 | |||
Convertible Notes, debt conversion, principal amount | $ 1,000 | $ 0 | ||
Debt instrument, conversion price | $ 28.66 | $ 27.82 |
Derivative Financial Instrume52
Derivative Financial Instruments - Additional Information (Detail) - Jun. 30, 2015 | USD ($)Counterparty | USD ($)Counterparty |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of derivative counterparties in net asset position | Counterparty | 1 | 1 |
Number of derivative counterparties in net liability position | Counterparty | 1 | 1 |
Credit-Risk Related Contingent Features, net asset position | $ 921,964 | $ 921,964 |
Credit-Risk Related Contingent Features, net liability position | 1,300,000 | 1,300,000 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivatives recorded losses during the period | $ 11,000 | 11,000 |
Interest Rate Caps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash flow hedge ineffectiveness | 0 | |
Reclassification from other comprehensive income as increase to interest expense | $ 131,000 |
Derivative Financial Instrume53
Derivative Financial Instruments - Summary of Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk (Detail) - Jun. 30, 2015 - Cash Flow Hedges [Member] - Designated as Hedging Instrument [Member] - Interest Rate Caps [Member] | USD ($)DerivativeInstrument | GBP (£)DerivativeInstrument | CADDerivativeInstrument | EUR (€)DerivativeInstrument |
USD [Member] | USD LIBOR [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 26 | 26 | 26 | 26 |
Notional Amount | $ | $ 1,097,632,000 | |||
Strike | 2.00% | 2.00% | 2.00% | 2.00% |
Wtd. Avg. Maturity (Years) | 1 year 9 months 18 days | |||
CAD [Member] | CDOR [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 11 | 11 | 11 | 11 |
Notional Amount | CAD | CAD 550,589,000 | |||
Strike | 2.00% | 2.00% | 2.00% | 2.00% |
Wtd. Avg. Maturity (Years) | 1 year 8 months 12 days | |||
EUR [Member] | EURIBOR [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 1 | 1 | 1 | 1 |
Notional Amount | € | € 152,710,000 | |||
Strike | 2.00% | 2.00% | 2.00% | 2.00% |
Wtd. Avg. Maturity (Years) | 1 year 6 months | |||
GBP [Member] | GBP LIBOR [Member] | ||||
Derivative [Line Items] | ||||
Number of Instruments | 1 | 1 | 1 | 1 |
Notional Amount | £ | £ 15,142,000 | |||
Strike | 2.00% | 2.00% | 2.00% | 2.00% |
Wtd. Avg. Maturity (Years) | 1 year 9 months 18 days |
Derivative Financial Instrume54
Derivative Financial Instruments - Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk (Detail) - Jun. 30, 2015 - Sell [Member] - Designated as Hedging Instrument [Member] - Canadian Dollar Forward [Member] - Cash Flow Hedges [Member] | GBP (£)DerivativeInstrument | CADDerivativeInstrument | EUR (€)DerivativeInstrument |
CAD [Member] | |||
Derivative [Line Items] | |||
Number of Instruments | 2 | 2 | 2 |
Notional Amount | CAD | CAD 204,261,000 | ||
GBP [Member] | |||
Derivative [Line Items] | |||
Number of Instruments | 2 | 2 | 2 |
Notional Amount | £ | £ 64,000,000 | ||
EUR [Member] | |||
Derivative [Line Items] | |||
Number of Instruments | 2 | 2 | 2 |
Notional Amount | € | € 51,000,000 |
Derivative Financial Instrume55
Derivative Financial Instruments - Summary of Outstanding Non-designated Hedges (Detail) - Jun. 30, 2015 - Not Designated as Hedging Instrument [Member] - Interest Rate Caps [Member] | USD ($)DerivativeInstrument | GBP (£)DerivativeInstrument |
USD [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of Instruments | 2 | 2 |
Notional Amount | $ | $ 42,240,000 | |
GBP [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Number of Instruments | 1 | 1 |
Notional Amount | £ | £ 619,000 |
Derivative Financial Instrume56
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives in an Asset Position | $ 2,591 | $ 1,138 |
Fair Value of Derivatives in a Liability Position | 2,506 | |
Interest Rate Caps [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives in an Asset Position | 919 | |
Foreign Currency Contracts [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair Value of Derivatives in an Asset Position | 1,672 | $ 1,138 |
Fair Value of Derivatives in a Liability Position | $ 2,506 |
Derivative Financial Instrume57
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statement of Operations (Detail) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total | Total |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 1,200 | $ 3,308 | $ (28) |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 | |
Cash Flow Hedges [Member] | Interest Rate Caps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 823 | $ 823 | |
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Interest Expense | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | $ 0 | |
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 2,485 | $ (851) | |
Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Gain (Loss) on Sale of Subsidiary | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ 0 |
Derivative Financial Instrume58
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statement of Operations (Parenthetical) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Net Investment Hedges [Member] | Foreign Currency Contracts [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Net cash settlements on our foreign currency forward contracts | $ 2.8 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 15, 2015 | Jun. 30, 2015 | May. 09, 2014 | Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 25, 2014 | May. 31, 2013 |
Class of Stock [Line Items] | |||||||||||||
Total stock, shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | 300,000,000 | |||||||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||
Preferred stock issued | 0 | 0 | 0 | 0 | |||||||||
Preferred stock outstanding | 0 | 0 | 0 | 0 | |||||||||
Plan adoption date | Mar. 25, 2014 | ||||||||||||
Number of shares sold during period | 280,025 | 34,780,298 | 18,975,001 | ||||||||||
Net proceeds from issuance of common stock | $ 7,900 | $ 1,029,557 | $ 510,845 | ||||||||||
Dividends paid | $ 60,695 | $ 32,129 | |||||||||||
Dividends declared per common stock | $ 0.52 | $ 0.52 | $ 0.48 | $ 1.04 | $ 0.96 | ||||||||
Date of dividend paid | Jul. 15, 2015 | ||||||||||||
Date of dividend declared | Jun. 30, 2015 | ||||||||||||
Record date of dividend paid | Jun. 30, 2015 | ||||||||||||
Accumulated other comprehensive loss | $ (19,332) | $ (19,332) | $ (19,332) | $ (19,332) | $ (15,024) | ||||||||
Gain related to changes in fair value of derivative instruments | 1,200 | 3,308 | (28) | ||||||||||
Cumulative currency translation adjustment on assets and liabilities denominated in foreign currencies | 20,500 | 20,500 | 20,500 | 20,500 | |||||||||
CT Legacy Partners' total equity | 21,200 | 21,200 | 21,200 | 21,200 | |||||||||
Equity interests owned by Blackstone Mortgage Trust, Inc. | 8,800 | 8,800 | 8,800 | 8,800 | |||||||||
Non-controlling interests in CT Legacy Partners | $ 12,400 | $ 12,400 | $ 12,400 | 12,400 | |||||||||
Subsequent Events [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends paid | $ 48,500 | ||||||||||||
Dividends paid per common stock | $ 0.52 | ||||||||||||
Installment 1 Fiscal Year 2015 [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends paid | $ 78,900 | $ 42,100 | |||||||||||
Class A Common Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Common stock, shares issued | 93,229,986 | 93,229,986 | 93,229,986 | 93,229,986 | 58,269,889 | 25,875,000 | |||||||
Common stock, shares issued under dividend reinvestment component | 273 | ||||||||||||
Aggregate sales price | $ 200,000 | ||||||||||||
Number of shares sold during period | 11,500,000 | 280,025 | 23,000,000 | 34,780,025 | |||||||||
Net proceeds from issuance of common stock | $ 337,935 | $ 7,895 | $ 683,727 | $ 1,029,557 | |||||||||
Class A Common Stock [Member] | ATM Agreements [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares sold during period | 280,025 | ||||||||||||
Net proceeds from issuance of common stock | $ 7,900 | ||||||||||||
Aggregate sales price remaining available | $ 188,600 | $ 188,600 | $ 188,600 | $ 188,600 | |||||||||
Class A Common Stock [Member] | Direct Stock Purchase Plan [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares issued | 0 | 0 | 0 | 0 | |||||||||
Class A Common Stock [Member] | Dividend Reinvestment and Direct Stock Purchase Plan [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Reserved for issuance of class A common stock | 9,999,721 | 9,999,721 | 9,999,721 | 9,999,721 | 10,000,000 |
Equity - Summary of Class A Com
Equity - Summary of Class A Common Stock Issuances (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Shares issued | 280,025 | 34,780,298 | 18,975,001 | ||
Net proceeds | $ 7,900 | $ 1,029,557 | $ 510,845 | ||
Class A Common Stock [Member] | |||||
Shares issued | 11,500,000 | 280,025 | 23,000,000 | 34,780,025 | |
Share issue price | $ 29.42 | $ 29.97 | $ 29.75 | $ 29.64 | |
Net proceeds | $ 337,935 | $ 7,895 | $ 683,727 | $ 1,029,557 |
Equity - Summary of Class A C61
Equity - Summary of Class A Common Stock Issuances (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
May. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | |||
Shares issued | 280,025 | 34,780,298 | 18,975,001 |
Weighted average issue price | $ 29.97 | ||
Net proceeds | $ 7,900 | $ 1,029,557 | $ 510,845 |
Equity - Schedule of Movement i
Equity - Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units (Detail) - shares | 1 Months Ended | 6 Months Ended | |
May. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Abstract] | |||
Beginning balance | 58,388,808 | 29,602,884 | |
Issuance of class A common stock | 280,025 | 34,780,298 | 18,975,001 |
Issuance of restricted class A common stock, net | 179,799 | ||
Issuance of deferred stock units | 10,665 | 10,009 | |
Ending balance | 93,359,570 | 48,587,894 |
Equity - Schedule of Movement63
Equity - Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units (Parenthetical) (Detail) - shares | Jun. 30, 2015 | Jun. 30, 2014 |
Equity [Abstract] | ||
Deferred stock units held by directors | 129,584 | 106,188 |
Equity - Schedule of Basic and
Equity - Schedule of Basic and Diluted Earnings Per Share, or EPS, Based on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 29,284 | $ 33,466 | $ 64,679 | $ 46,531 |
Weighted-average shares outstanding, basic and diluted | 80,940,535 | 47,977,813 | 69,820,061 | 43,000,242 |
Per share amount, basic and diluted | $ 0.36 | $ 0.70 | $ 0.93 | $ 1.08 |
Other Expenses - Additional Inf
Other Expenses - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Management fee - percent of outstanding equity balance | 1.50% | ||||
Incentive fee computation-percent of the product per agreement | 20.00% | ||||
Incentive fee computation-percent of outstanding Equity per annum | 7.00% | ||||
Management fees description | Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in the management agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period (or the period since the date of the first offering of our class A common stock following December 19, 2012, whichever is shorter) is greater than zero. Core Earnings is generally equal to our net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items and (ii) the net income (loss) related to our legacy portfolio. | ||||
Management fees | $ 8,051,000 | $ 4,410,000 | $ 14,721,000 | $ 7,807,000 | |
Manager [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Management fees | 13,500,000 | 7,800,000 | |||
Incentive fees payable | $ 1,200,000 | $ 0 | |||
Incentive Awards Plan [Member] | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Percentage of the dividends paid to common equity holders created employee pool | 6.75% | 6.75% | |||
Percentage of pool three fourths vested | 50.00% | 50.00% | |||
Percentage of remaining pool after vesting | 50.00% | ||||
Fully vested pool, percentage | 27.00% | 27.00% | |||
Percentage of pool vesting upon receipt of dividends | 33.00% | 33.00% | |||
Description of incentive management fee awards to employees vesting schedule | Approximately 50% of the pool is three-fourths vested as of June 30, 2015, with the remainder contingent on continued employment with an affiliate of our Manager and our receipt of distributions from CT Legacy Partners. Of the remaining 50% of the pool, 27% is fully vested as a result of an acceleration event, and 33% vest only upon our receipt of distributions from CT Legacy Partners. | ||||
Accrued payables, awards | $ 1,200,000 | $ 1,200,000 | $ 2,800,000 |
Other Expenses - Schedule of Ge
Other Expenses - Schedule of General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Professional services | $ 777 | $ 648 | $ 1,476 | $ 1,098 |
Operating and other costs | 554 | 469 | 1,112 | 1,031 |
Subtotal | 10,344 | 1,117 | 11,801 | 2,129 |
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Restricted class A common stock earned | 3,303 | 2,289 | 6,506 | 4,029 |
Subtotal | 5,249 | 13,989 | 11,353 | 15,959 |
Total BXMT expenses | 15,698 | 15,356 | 23,359 | 18,554 |
Expenses of consolidated subsidiaries | 15,698 | 15,356 | 23,359 | 18,554 |
General and Administrative Expense [Member] | ||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Director stock-based compensation | 94 | 94 | 188 | 188 |
CT Legacy Partners [Member] | ||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Management incentive awards plan | 1,024 | 416 | 2,054 | 552 |
Blackstone [Member] | ||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Total BXMT expenses | 15,593 | 15,106 | 23,154 | 18,088 |
Expenses of consolidated subsidiaries | 15,593 | 15,106 | 23,154 | 18,088 |
REIT [Member] | ||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Total BXMT expenses | 105 | 250 | 205 | 466 |
Expenses of consolidated subsidiaries | 105 | 250 | 205 | 466 |
GE Portfolio Acquisition Facility [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
GE transaction costs | 9,013 | 9,213 | ||
CT Opportunity Partners I, LP [Member] | ||||
Non-cash and CT Legacy Portfolio compensation expenses | ||||
Management incentive awards plan | $ 828 | $ 11,190 | $ 2,605 | $ 11,190 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | May. 31, 2013 | |
Tax Credit Carryforward [Line Items] | ||||||
Annual distribution of net taxable income for U.S. federal income tax not to apply to our earnings that we distribute (percent) | 90.00% | |||||
Net taxable income subject to distribution (percent) | 100.00% | |||||
Excise tax rate | 4.00% | |||||
Income tax provision | $ 105,000 | $ (2,000) | $ 350,000 | $ 530,000 | ||
Deferred tax assets | 0 | 0 | $ 0 | |||
Deferred tax liabilities | 0 | $ 0 | 0 | |||
Net operating losses carried forward | 159,000,000 | |||||
Net capital losses carried forward | $ 32,000,000 | |||||
NOLs expiration date | Expire in 2029 | |||||
Capital Loss Carryforwards Expiring 2014 [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Net capital losses carried forward | 31,400,000 | $ 31,400,000 | ||||
Capital Loss Carryforwards Expiring 2015 [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Net capital losses carried forward | 602,000 | 602,000 | ||||
Internal Revenue Service [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Net operating losses and net capital losses | $ 2,000,000 | $ 2,000,000 | ||||
Class A Common Stock [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Common stock, shares issued | 93,229,986 | 93,229,986 | 58,269,889 | 25,875,000 | ||
Earliest Tax Year [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Open tax year | 2,011 | |||||
Latest Tax Year [Member] | ||||||
Tax Credit Carryforward [Line Items] | ||||||
Open tax year | 2,014 |
Stock-Based Incentive Plans - A
Stock-Based Incentive Plans - Additional Information (Detail) $ in Millions | Jun. 30, 2015USD ($)Plansshares | Jun. 30, 2015USD ($)Plansshares | Dec. 31, 2014shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of benefit plans | Plans | 5 | 5 | |
Issuance of restricted class A common stock, net | 179,799 | ||
Restricted Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of restricted class A common stock, net | 190,674 | ||
Restricted shares, vesting period | 3 years | ||
Number of shares of restricted class A common stock outstanding | 869,948 | 869,948 | 919,719 |
Unrecognized compensation cost relating to nonvested share-based compensation | $ | $ 24.2 | $ 24.2 | |
Unrecognized compensation cost expected to be recognized over weighted average period | 1 year 6 months | ||
Vest in 2015 [Member] | Restricted Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted class A common stock outstanding | 227,761 | 227,761 | |
Vest in 2016 [Member] | Restricted Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted class A common stock outstanding | 416,339 | 416,339 | |
Vest in 2017 [Member] | Restricted Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted class A common stock outstanding | 225,598 | 225,598 | |
2013 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available under plan | 748,855 | 748,855 | |
2013 Manager Plan [Member] | Maximum [Member] | Class A Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available under plan | 2,160,106 | 2,160,106 | |
Expired Plans [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares available under plan | 0 | 0 |
Stock-Based Incentive Plans - M
Stock-Based Incentive Plans - Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share (Detail) - 6 months ended Jun. 30, 2015 - Restricted Class A Common Stock [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Class A Common Stock, Beginning Balance | 919,719 |
Restricted Class A Common Stock, Granted | 190,674 |
Restricted Class A Common Stock, Vested | (229,570) |
Restricted Class A Common Stock, Forfeited | (10,875) |
Restricted Class A Common Stock, Ending Balance | 869,948 |
Weighted-Average Grant Date Fair Value Per Share, Beginning Balance | $ 26.86 |
Weighted-Average Grant Date Fair Value Per Share, Granted | 29.39 |
Weighted-Average Grant Date Fair Value Per Share, Vested | 26.95 |
Weighted-Average Grant Date Fair Value Per Share, Forfeited | 28.02 |
Weighted-Average Grant Date Fair Value Per Share, Ending Balance | $ 27.38 |
Fair Values - Assets and Liabil
Fair Values - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Derivatives | $ 2,591 | $ 1,138 |
Other assets, at fair value | 13,947 | 49,017 |
Liabilities | ||
Derivatives | 2,506 | |
Level 2 [Member] | ||
Assets | ||
Derivatives | 2,591 | 1,138 |
Other assets, at fair value | 1,251 | 1,510 |
Liabilities | ||
Derivatives | 2,506 | |
Level 3 [Member] | ||
Assets | ||
Other assets, at fair value | $ 12,696 | $ 47,507 |
Fair Values - Reconciliation of
Fair Values - Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Adjustments to fair value included in earnings | ||||
Unrealized gain on investments at fair value | $ 4,714 | $ 7,163 | $ 22,190 | $ 5,824 |
Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning | 47,507 | 54,461 | ||
Proceeds from investments | (57,039) | (326) | ||
Adjustments to fair value included in earnings | ||||
Unrealized gain on investments at fair value | 22,228 | 5,829 | ||
Balance, ending | $ 12,696 | $ 59,964 | $ 12,696 | $ 59,964 |
Fair Values - Additional Inform
Fair Values - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2014USD ($)SecurityLoan | Jun. 30, 2015USD ($)SecurityLoan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Book value of securities | $ 11 | |
Loans receivable | $ 19 | |
Number of loans | SecurityLoan | 0 | |
Aggregate book value of equity investments and other receivables | $ 2.9 | |
Hotel [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of loans | SecurityLoan | 1 | |
Discount rate | 7.00% | |
Fair value of a 100 bp discount rate increase | 0.30% | |
Office [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of loans | SecurityLoan | 1 | |
Discount rate | 15.00% | |
Fair value of a 100 bp discount rate increase | 1.10% |
Fair Values - Schedule of Detai
Fair Values - Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets | ||
Loans receivable, net | $ 19,000 | |
Financial liabilities | ||
Secured debt agreements | $ 7,088,738 | 2,365,336 |
Loan participations sold | 635,581 | 499,433 |
Carrying Amount [Member] | ||
Financial assets | ||
Cash and cash equivalents | 104,252 | 51,810 |
Restricted cash | 7,025 | 11,591 |
Loans receivable, net | 10,131,323 | 4,428,500 |
Financial liabilities | ||
Secured debt agreements | 7,088,738 | 2,040,783 |
Loan participations sold | 635,581 | 499,433 |
Convertible notes, net | 163,073 | 161,853 |
Face Amount [Member] | ||
Financial assets | ||
Cash and cash equivalents | 104,252 | 51,810 |
Restricted cash | 7,025 | 11,591 |
Loans receivable, net | 10,169,609 | 4,462,897 |
Financial liabilities | ||
Secured debt agreements | 7,088,738 | 2,040,783 |
Loan participations sold | 635,581 | 499,433 |
Convertible notes, net | 172,500 | 172,500 |
Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 104,252 | 51,810 |
Restricted cash | 7,025 | 11,591 |
Loans receivable, net | 10,154,374 | 4,462,897 |
Financial liabilities | ||
Secured debt agreements | 7,088,738 | 2,040,783 |
Loan participations sold | 635,581 | 499,433 |
Convertible notes, net | $ 185,006 | $ 181,341 |
Transactions with Related Par74
Transactions with Related Parties - Additional Information (Detail) - USD ($) | May. 15, 2015 | May. 08, 2015 | Oct. 23, 2014 | Oct. 03, 2013 | Apr. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 10, 2015 | Dec. 31, 2014 | May. 31, 2013 |
Related Party Transaction [Line Items] | |||||||||||||
Issuance of restricted class A common stock | 179,799 | ||||||||||||
Unrealized gain on investments at fair value | $ 4,714,000 | $ 7,163,000 | $ 22,190,000 | $ 5,824,000 | |||||||||
Amount of loan originated | $ 590,000,000 | $ 320,000,000 | |||||||||||
Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Fair value of restricted class A common stock | $ 932,000 | $ 932,000 | $ 583,000 | ||||||||||
Common stock, shares issued | 93,229,986 | 93,229,986 | 58,269,889 | 25,875,000 | |||||||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
General Electrical Capital Corporation [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Purchase price of Loan Portfolio | $ 4,700,000,000 | $ 4,700,000,000 | |||||||||||
IPO [Member] | Blackstone Capital Markets [Member] | Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Compensation made to co-manager for stock offering | $ 761,000 | ||||||||||||
Loan Purchase Commitments [Member] | Commercial Portfolio Segment [Member] | General Electrical Capital Corporation [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Portfolio of loans acquired | 4,900,000,000 | 4,900,000,000 | $ 4,600,000,000 | ||||||||||
Purchase price of Loan Portfolio | 4,700,000,000 | $ 4,700,000,000 | $ 23,000,000,000 | ||||||||||
Restricted Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Issuance of restricted class A common stock | 190,674 | ||||||||||||
Vesting period of restricted class A common stock | 3 years | ||||||||||||
Manager [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Management Agreement expiration date | Dec. 19, 2016 | ||||||||||||
Management Agreement renewal term, description | The initial term of which expires on December 19, 2016 and will be automatically renewed for a one-year term each anniversary thereafter unless earlier terminated. | ||||||||||||
Accrued management fees payable | 8,100,000 | $ 8,100,000 | |||||||||||
Management fees paid to Manager | 12,900,000 | ||||||||||||
Preferred distributions payable to affiliate of our Manager | 139,000 | ||||||||||||
Manager [Member] | CT Legacy Partners [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount of investment in Three-Pack JV | $ 18,500,000 | ||||||||||||
Unrealized gain on investments at fair value | 22,100,000 | ||||||||||||
Net sale proceeds assumed | 40,600,000 | ||||||||||||
Expected net sales proceeds, amount received | $ 37,700,000 | ||||||||||||
Manager [Member] | CT Legacy Partners [Member] | Incentive Awards Plan [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Aggregate incentive compensation payments | 2,700,000 | ||||||||||||
Incentive compensation amount paid | $ 2,500,000 | ||||||||||||
Manager [Member] | IPO [Member] | Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Common stock, shares issued | 1,885,245 | ||||||||||||
Common stock, par value | $ 30.50 | ||||||||||||
Manager [Member] | Restricted Class A Common Stock [Member] | Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Issuance of restricted class A common stock | 337,941 | 339,431 | |||||||||||
Fair value of restricted class A common stock | $ 9,400,000 | $ 8,500,000 | |||||||||||
Vesting period of restricted class A common stock | 3 years | ||||||||||||
Non-cash expense | 3,300,000 | $ 1,700,000 | |||||||||||
BXMT Advisors Limited Liability Company and Affiliates [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payments of preferred distributions to affiliate of our Manager | 841,000 | ||||||||||||
Preferred distributions payable to affiliate of our Manager | $ 83,333 | 83,333 | |||||||||||
Modification fee | $ 354,000 | ||||||||||||
Affiliates of Manager [Member] | Third-Party Service Provider [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Administrative services expenses incurred | $ 129,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Jun. 30, 2015 | USD ($)LoansInstallmentsDirectors |
Commitments And Contingencies [Line Items] | |
Unfunded loan commitments | $ 791,200,000 |
Commitments expiration period | 4 years |
Number of loans receivable | Loans | 72 |
Percentage of compensation paid in cash | 40.00% |
Percentage of compensation in the form of deferred stock units | 60.00% |
Number of board of directors | Directors | 8 |
Number of independent directors entitled to annual compensation | Directors | 5 |
Number of equal quarterly installments | Installments | 4 |
CT Investment Management Co LLC [Member] | |
Commitments And Contingencies [Line Items] | |
Income tax examinations, reserves | $ 0 |
Five Independent Board of Directors [Member] | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 125,000 |
Three Board of Directors [Member] | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 0 |
Chairperson of Audit Committee [Member] | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | $ 12,000 |
Uncategorized Items - bxmt-2015
Label | Element | Value |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ 32,417 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | 38,439 |
Income (Loss) from Equity Method Investments | us-gaap_IncomeLossFromEquityMethodInvestments | 1,710 |
Income (Loss) from Equity Method Investments | us-gaap_IncomeLossFromEquityMethodInvestments | $ 24,294 |