Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 26, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | DRIVE SHACK INC. | |
Entity Central Index Key | 1,175,483 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 66,842,378 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Real estate securities, available-for-sale | $ 2,032 | $ 1,950 |
Real estate securities, available-for-sale - pledged as collateral | 326,878 | 627,304 |
Real estate related and other loans, held-for-sale, net | 59,043 | 55,612 |
Investments in real estate, net of accumulated depreciation | 216,452 | 217,611 |
Intangibles, net of accumulated amortization | 63,366 | 65,112 |
Other investments | 19,636 | 19,256 |
Cash and cash equivalents | 126,970 | 140,140 |
Restricted cash | 7,213 | 6,404 |
Receivables from brokers, dealers and clearing organizations | 0 | 552 |
Receivables and other assets | 38,165 | 38,017 |
Total Assets | 859,755 | 1,171,958 |
Liabilities | ||
Repurchase agreements | 310,630 | 600,964 |
Credit facilities and obligations under capital leases | 114,851 | 115,284 |
Junior subordinated notes payable | 51,214 | 51,217 |
Dividends payable | 930 | 8,949 |
Membership deposit liabilities | 90,570 | 89,040 |
Accounts payable, accrued expenses and other liabilities | 87,720 | 88,437 |
Total Liabilities | 655,915 | 953,891 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of March 31, 2017 and December 31, 2016 | 61,583 | 61,583 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 66,842,378 and 66,824,304 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 668 | 668 |
Additional paid-in capital | 3,172,795 | 3,172,720 |
Accumulated deficit | (3,032,421) | (3,018,072) |
Accumulated other comprehensive income | 1,215 | 1,168 |
Total Drive Shack Inc. Stockholders’ Equity | 203,840 | 218,067 |
Noncontrolling interest | 0 | 0 |
Total Equity | 203,840 | 218,067 |
Total Liabilities and Equity | $ 859,755 | $ 1,171,958 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock liquidation preference, (in dollars per share) | $ 25 | $ 25 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 66,842,378 | 66,824,304 |
Common stock, shares outstanding (in shares) | 66,842,378 | 66,824,304 |
Series B Cumulative Redeemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 1,347,321 | 1,347,321 |
Preferred stock, shares outstanding (in shares) | 1,347,321 | 1,347,321 |
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% |
Series C Cumulative Redeemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 496,000 | 496,000 |
Preferred stock, shares outstanding (in shares) | 496,000 | 496,000 |
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% |
Series D Cumulative Redemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 620,000 | 620,000 |
Preferred stock, shares outstanding (in shares) | 620,000 | 620,000 |
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Golf course operations | $ 46,296 | $ 48,597 |
Sales of food and beverages | 12,845 | 13,561 |
Total revenues | 59,141 | 62,158 |
Operating costs | ||
Operating expenses | 54,431 | 58,219 |
Cost of sales - food and beverages | 4,032 | 4,597 |
General and administrative expense | 3,565 | 2,937 |
Management fee to affiliate | 2,677 | 2,675 |
Depreciation and amortization | 5,793 | 6,031 |
Impairment | 0 | 2,308 |
Realized/unrealized loss on investments | 3,389 | 2,007 |
Total operating costs | 73,887 | 78,774 |
Operating loss | (14,746) | (16,616) |
Other income (expenses) | ||
Interest and investment income | 7,888 | 21,039 |
Interest expense | (5,434) | (13,534) |
Gain on deconsolidation | 0 | 82,130 |
Other income (loss), net | (123) | 320 |
Total other income (expenses) | 2,331 | 89,955 |
(Loss) Income before income tax | (12,415) | 73,339 |
Income tax expense | 539 | 44 |
Net (Loss) Income | (12,954) | 73,295 |
Preferred dividends | (1,395) | (1,395) |
Net loss attributable to noncontrolling interest | 0 | 124 |
(Loss) Income Applicable to Common Stockholders | $ (14,349) | $ 72,024 |
Income Applicable to Common Stock, per share | ||
Basic (in dollars per share) | $ (0.21) | $ 1.08 |
Diluted (in dollars per share) | $ (0.21) | $ 1.05 |
Weighted Average Number of Shares of Common Stock Outstanding | ||
Basic (in shares) | 66,841,977 | 66,654,598 |
Diluted (in shares) | 66,841,977 | 68,284,898 |
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0 | $ 0.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (12,954) | $ 73,295 |
Other comprehensive income (loss): | ||
Net unrealized (loss) gain on available-for-sale securities | 47 | 5,301 |
Reclassification of net realized loss (gain) on securities into earnings | 0 | (5,863) |
Reclassification of net realized gain on deconsolidation of CDO VI | 0 | (20,682) |
Reclassification of net realized gain on derivatives designated as cash flow hedges into earnings | 0 | (20) |
Other comprehensive income (loss) | 47 | (21,264) |
Total comprehensive (loss) income | (12,907) | 52,031 |
Comprehensive (loss) income attributable to Drive Shack Inc. stockholders’ equity | (12,907) | 52,155 |
Comprehensive loss attributable to noncontrolling interest | $ 0 | $ (124) |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comp. Income (Loss) | Total Drive Shack Inc. Stockholders’ Equity | Noncontrolling Interest |
Equity (deficit), beginning (in shares) at Dec. 31, 2016 | 2,463,321 | 66,824,304 | ||||||
Equity (deficit), beginning at Dec. 31, 2016 | $ 218,067 | $ 61,583 | $ 668 | $ 3,172,720 | $ (3,018,072) | $ 1,168 | $ 218,067 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends declared | (1,395) | (1,395) | (1,395) | |||||
Issuance of common stock (directors) (in shares) | 18,074 | |||||||
Issuance of common stock (directors) | 75 | 75 | 75 | |||||
Comprehensive income (loss) | ||||||||
Net loss | (12,954) | (12,954) | (12,954) | 0 | ||||
Other comprehensive income | 47 | 47 | 47 | |||||
Total comprehensive (loss) income | (12,907) | (12,907) | 0 | |||||
Equity (deficit), ending (in shares) at Mar. 31, 2017 | 2,463,321 | 66,842,378 | ||||||
Equity (deficit), ending at Mar. 31, 2017 | $ 203,840 | $ 61,583 | $ 668 | $ 3,172,795 | $ (3,032,421) | $ 1,215 | $ 203,840 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ (12,954) | $ 73,295 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 5,793 | 6,031 |
Amortization of discount and premium | 620 | 463 |
Other amortization | 2,614 | 2,635 |
Net interest income on investments accrued to principal balance | (3,431) | (7,931) |
Amortization of revenue on golf membership deposit liabilities | (305) | (185) |
Amortization of prepaid golf membership dues | (6,283) | (6,222) |
Non-cash directors’ compensation | 75 | 0 |
Valuation allowance on loans | 0 | 2,198 |
Other-than-temporary impairment on securities | 0 | 110 |
Equity in earnings from equity method investments, net of distributions | (379) | (371) |
Gain on deconsolidation | 0 | (82,130) |
Loss on settlement of investments, net | 473 | 1,725 |
Unrealized loss on securities, intent-to-sell | 558 | 0 |
Unrealized loss on non-hedge derivatives | 2,502 | 341 |
Loss on extinguishment of debt, net | 146 | 232 |
Change in: | ||
Restricted cash | 330 | (482) |
Receivables and other assets | (645) | (1,313) |
Accounts payable, accrued expenses and other liabilities | 1,474 | 2,250 |
Net cash used in operating activities | (9,412) | (9,354) |
Cash Flows From Investing Activities | ||
Principal repayments from investments | 10,707 | 5,444 |
Purchase of real estate securities | 0 | (364,072) |
Proceeds from sale of investments | 286,639 | 361,341 |
Net proceeds from (payments for) settlement of TBAs | 2,474 | (7,536) |
Acquisition and additions of investments in real estate | (3,971) | (1,972) |
Deposits paid on investments | (80) | 0 |
Net cash provided by (used in) investing activities | 295,769 | (6,795) |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 1,007 | 363,741 |
Repayments of debt obligations | (292,237) | (352,211) |
Margin deposits under repurchase agreements and derivatives | (49,545) | (9,406) |
Return of margin deposits under repurchase agreements and derivatives | 50,156 | 9,636 |
Golf membership deposits received | 695 | 679 |
Common stock dividends paid | (8,019) | (7,999) |
Preferred stock dividends paid | (1,395) | (1,395) |
Payment of deferred financing costs | (22) | (263) |
Other financing activities | (167) | (158) |
Net cash (used in) provided by financing activities | (299,527) | 2,624 |
Net Decrease in Cash and Cash Equivalents | (13,170) | (13,525) |
Cash and Cash Equivalents, Beginning of Period | 140,140 | 45,651 |
Cash and Cash Equivalents, End of Period | 126,970 | 32,126 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Preferred stock dividends declared but not paid | 930 | 930 |
Common stock dividends declared but not paid | 0 | 7,999 |
Additions to capital lease assets and liabilities | $ 254 | $ 718 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Drive Shack Inc. (and with its subsidiaries, “Drive Shack Inc.” or the “Company”), is a leading owner and operator of golf-related leisure and entertainment businesses. On December 28, 2016, the Company changed its name from Newcastle Investment Corp. to Drive Shack Inc. in connection with its transformation to a leisure and entertainment company. The Company, a Maryland corporation, was formed in 2002, and its common stock is traded on the NYSE under the symbol “DS.” The Company conducts its business through the following segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments and (iv) corporate. For a further discussion of the reportable segments, see Note 3. The Company’s Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of March 31, 2017 , the Company owned, leased or managed 78 properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally which combine golf, competition, dining and fun. The Company plans to monetize the remaining loans and securities in its Debt Investments segment as part of the transformation to a leisure and entertainment company. On February 23, 2017, the Company revoked its election to be treated as a real estate investment trust (“REIT”), effective January 1, 2017. The Company operated in a manner intended to qualify as a REIT for federal income tax purposes through December 31, 2016. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. 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. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2017. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2016 . Certain prior period amounts have been reclassified to conform to the current period’s presentation. In connection with the Company’s continued transformation from a financial services company to a leisure and entertainment company, including the announcement of the new management team in September 2016, the revocation of its REIT election effective January 1, 2017, as well as the monetization and planned exit of our real estate related debt positions, the Company’s Consolidated Statements of Operations have been changed to reflect an operating company presentation. We have reclassified driving range revenue, including the monthly membership program offered at most of our public properties (“The Players Club’’) and miscellaneous revenue associated with operations from “Other revenue” to “Golf course operations”. We have reclassified expenses associated with the cost of merchandise sold from “Cost of sales - golf” to “Operating expenses.” We have added “Loan and security servicing expense” to “General and administrative expense.” The gains and losses associated with derivative instruments have been reclassified from “Other income (loss), net” to “Realized/unrealized (gain) loss on investments” to include balances as part of our operating income (loss). The Company did not make changes to its Consolidated Balance Sheets given the carrying value of the real estate related investments, including agency FNMA/FHLMC securities, held by the Company still represents a significant amount on the Company's Consolidated Balance Sheets at March 31, 2017 . As of March 31, 2017 , the Company’s significant accounting policies for these financial statements are summarized below and should be read in conjunction with the Summary of Significant Accounting Policies detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . REVENUE RECOGNITION Golf Course Operations — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) are generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues is recognized in the month earned. Membership dues received in advance are included in deferred revenues and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. The membership dues are generally structured to cover the club operating costs and membership services. Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. Realized/Unrealized Loss on Investments and Other Income (Loss), Net — These items are comprised of the following: Three Months Ended March 31, 2017 2016 (Gain) on settlement of real estate securities $ — $ (5,917 ) Loss on settlement of real estate securities 2,803 — Unrealized loss on securities, intent-to-sell 558 — Loss on repayment/disposition of loans held-for-sale — 47 Realized (gain) loss on settlement of TBAs, net (2,474 ) 7,536 Unrealized loss on non-hedge derivative instruments 2,502 341 Realized/unrealized loss on investments $ 3,389 $ 2,007 Loss on lease modifications and terminations $ (158 ) $ (60 ) Loss on extinguishment of debt, net (146 ) (232 ) Collateral management fee income, net 122 232 Equity in earnings of equity method investees 379 371 Gain (loss) on disposal of long-lived assets 26 (6 ) Other (loss) income (346 ) 15 Other (loss) income, net $ (123 ) $ 320 Reclassification From Accumulated Other Comprehensive Income Into Net (Loss) Income — The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net (loss) income: Three Months Ended March 31, Accumulated Other Comprehensive Income ("AOCI") Components Income Statement Location 2017 2016 Net realized (gain) loss on securities Impairment Impairment $ — $ 54 (Gain) on settlement of real estate securities Realized/unrealized (gain) loss on investments — (5,917 ) Realized (gain) on deconsolidation of CDO VI Gain on deconsolidation — (20,682 ) $ — $ (26,545 ) Net realized (gain) loss on derivatives designated as cash flow hedges Amortization of deferred hedge (gain) Interest expense $ — $ (20 ) $ — $ (20 ) Total reclassifications $ — $ (26,565 ) EXPENSE RECOGNITION Operating Expenses — Operating expenses for Traditional Golf consist primarily of payroll, equipment and cart leases, utilities, repairs and maintenance, supplies, seed, soil and fertilizer, marketing and operating lease rent expense. Many of the Traditional Golf properties and related facilities are leased under long-term operating leases. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. The majority of lease terms range from 10 to 20 years , and typically, the leases contain renewal options. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease. These scheduled rent increases or decreases are recognized on a straight-line basis over the term of the lease. Increases result in an accrual, which is included in accounts payable, accrued expenses and other liabilities, and decreases result in a receivable, which is included in receivables and other assets, for the amount by which the cumulative straight-line rent differs from the contractual cash rent. Derivatives and Hedging Activities — All derivatives are recognized as either assets or liabilities on the balance sheet and measured at fair value. The Company reports the fair value of derivative instruments gross of cash paid or received pursuant to credit support agreements and fair value is reflected on a net counterparty basis when the Company believes a legal right of offset exists under an enforceable netting agreement. Fair value adjustments affect either equity or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge or a fair value hedge. Derivative transactions are entered into by the Company solely for risk management purposes in the ordinary course of business. In determining whether to hedge a risk, the Company may consider whether other assets, liabilities, firm commitments and anticipated transactions already offset or reduce the risk. All transactions undertaken as hedges are entered into with a view towards minimizing the potential for economic losses that could be incurred by the Company. As of March 31, 2017 , the Company has no derivative instruments that qualify and are designated as hedging instruments, but has one interest rate cap with a fair value of $0.4 million which is not designated as a hedge. The Company transacts in the To Be Announced mortgage backed securities (“TBA”) market. TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. The Company primarily engages in TBA transactions for purposes of managing interest rate risk and market risk associated with our Agency residential mortgage backed securities (“RMBS”) investments for which we have exposure to interest rate and market risk volatility. The Company typically does not take delivery of TBAs, but rather settles the associated receivable and payable with its trading counterparties on a net basis. As part of its TBA activities, the Company may “roll” its TBA positions, whereby it may sell (buy) securities for delivery (receipt) in an earlier month and simultaneously contract to repurchase (sell) similar securities at an agreed-upon price on a fixed date in a later month. The Company accounts for its TBA transactions as non-hedge instruments, with changes in market value recorded in the Statement of Operations. As of March 31, 2017 , the Company held two short TBA contracts totaling $319.0 million in notional amount of Agency RMBS. As of March 31, 2017 and December 31, 2016 , the Company funded approximately $1.1 million and zero , respectively, for margin calls related to TBA contracts. The Company’s derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company seeks to reduce such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. Management does not expect any material losses as a result of default by other parties. BALANCE SHEET MEASUREMENT Investments in Real Estate, Net — Real estate and related improvements are recorded at cost less accumulated depreciation. Costs that both materially add value to an asset and extend the useful life of an asset by more than a year are capitalized. With respect to golf course improvements (included in buildings and improvements), costs associated with original construction, significant replacements, permanent landscaping, sand traps, fairways, tee boxes or greens are capitalized. All other asset-related costs that do not meet these criteria, such as minor repairs and routine maintenance, are expensed as incurred. Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs of sale. A disposal of a component of an entity or a group of components of an entity are reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Discontinued operations are retroactively reclassified to income (loss) from discontinued operations for all periods presented. Traditional Golf leases certain golf carts and other equipment that are classified as capital leases. The value of capital leases is recorded as an asset on the balance sheet, along with a liability related to the associated payments. Depreciation of capital lease assets is calculated using the straight-line method over the shorter of the estimated useful lives and the expected lease terms. The cost of equipment under capital leases is included in investments in real estate in the Consolidated Balance Sheets. Payments under the leases are treated as reductions of the liability, with a portion being recorded as interest expense under the effective interest method. Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years Intangibles — Intangible assets and liabilities relating to Traditional Golf consist primarily of leasehold advantages (disadvantages), management contracts and membership base. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of the transaction. The value of a leasehold advantage (disadvantage) is calculated based on the differential between market and contracted rent, which is tax effected and discounted to present value based on an after-tax discount rate corresponding to each golf property and is amortized over the term of the underlying lease agreement. The management contract intangible represents the Company’s golf course management contracts for both leased and managed properties. The management contract intangible for leased and managed properties is valued utilizing a discounted cash flow methodology under the income approach and is amortized over the term of the underlying lease or management agreements, respectively. The membership base intangible represents the Company’s relationship with its private country club members. The membership base intangible is valued using the multi-period excess earnings method under the income approach, and is amortized over the expected life of an active membership. Amortization of leasehold intangible assets and liabilities is included within operating expenses and amortization of all other intangible assets is included within depreciation and amortization in the Consolidated Statements of Operations. Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1 -26 years Management contracts 1 -26 years Internally-developed software 5 years Membership base 7 years Membership Deposit Liabilities — Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf course operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. Other Investment — The Company owns a 23% economic interest in a limited liability company which owns preferred equity secured by a commercial real estate project. The Company accounts for this investment as an equity method investment. As of March 31, 2017 and December 31, 2016 , the carrying value of this investment was $19.6 million and $19.3 million , respectively. The Company evaluates its equity method investment for other than temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. Impairment of Real Estate and Finite-lived Intangible Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. Investments in CDO Servicing Rights — In February 2011, the Company, through one of its subsidiaries, purchased the management rights with respect to certain C-BASS Investment Management LLC (“C-BASS”) Collateralized Debt Obligations (“CDOs”) for $2.2 million pursuant to a bankruptcy proceeding. The Company initially recorded the cost of acquiring the collateral management rights as a servicing asset and subsequently amortizes this asset in proportion to, and over the period of, estimated net servicing income. Servicing assets are assessed for impairment on a quarterly basis, with impairment recognized as a valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing assets include the prepayment speeds of the underlying collateral, default rates, loss severities and discount rates. During both the three months ended March 31, 2017 and 2016 , the Company recorded $0.1 million of servicing rights amortization and no servicing rights impairment. As of March 31, 2017 and December 31, 2016 , the Company’s servicing assets had a carrying value of $0.3 million and $0.4 million , respectively, recorded in receivables and other assets. Variable Interest Entities (“VIEs”) - There are no assets or liabilities of consolidated VIEs included in the Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016 . The Company sold its remaining variable interests in Newcastle CDO V and Newcastle CDO VI during 2016 but continue to receive servicing fees as collateral manager, which are not considered variable interests. Supplemental Non-Cash Investing and Financing Activities Related to CDOs - The Company considers all activity in its CDOs’ restricted cash accounts to be non-cash activity for purposes of its Consolidated Statement of Cash Flows since transactions conducted with restricted cash have no effect on its cash and cash equivalents. Supplemental non-cash investing and financing activities relating to CDOs for the three months ended March 31, 2016 are disclosed below. There were no non-cash investing and financing activities relating to CDOs for the three months ended March 31, 2017 . Three Months Ended March 31, 2016 Restricted cash generated from pay downs on securities and loans 2,310 Restricted cash used for repayments of CDO and other bonds payable 2,748 CDO VI deconsolidation: Real estate securities 43,889 Restricted cash 67 CDO and other bonds payable 105,423 Receivables and Other Assets The following table summarizes the Company's receivables and other assets: March 31, 2017 December 31, 2016 Accounts receivable, net $ 7,657 $ 8,047 Prepaid expenses 4,243 3,654 Interest receivable 932 1,697 Deposits 4,833 4,105 Inventory 5,010 4,496 Derivative assets 364 856 Residential mortgage loans, held-for-sale, net 228 231 Miscellaneous assets, net (A) 14,898 14,931 $ 38,165 $ 38,017 (A) Includes one owned property in Annandale, New Jersey in the Traditional Golf segment classified as held-for-sale as of December 31, 2016. We expect to close on this property during 2017 . Accounts Payable, Accrued Expenses and Other Liabilities The following table summarizes the Company's accounts payable, accrued expenses and other liabilities: March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 24,849 $ 26,249 Deferred revenue 30,255 36,107 Security deposits payable 9,392 6,073 Unfavorable leasehold interests 4,012 4,225 Derivative liabilities 2,010 — Accrued rent 2,031 2,613 Due to affiliates 892 892 Miscellaneous liabilities 14,279 12,278 $ 87,720 $ 88,437 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year. The standard will be effective for annual and interim periods beginning after December 15, 2017; however, all entities are allowed to adopt the standard as early as the original effective date (annual periods beginning after December 15, 2016). Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how to apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB issued ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers which amends the new revenue recognition guidance on performance obligations and 12 additional technical corrections and improvements. The Company is evaluating potential impacts of adopting this standard, and is in the process of reviewing customer contracts and revenue streams, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized. The Company expects to adopt the requirements of the new standard in the first quarter of 2018, and anticipates using the modified retrospective transition method. In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) . The standard requires lessees to recognize most leases on the balance sheet and addresses certain aspects of lessor accounting. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with an option to use certain relief. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount under the other-than-temporary impairment model. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted for annual periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The standard provides specific guidance over eight identified cash flow issues in order to reduce diversity in practice over the presentation and classification of certain types of cash receipts and cash payments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities should apply the standard using a retrospective transition method to each period presented. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230), Restricted Cash. The standard requires entities to show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows and provide a reconciliation to the related line items in the balance sheet. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance retrospectively when adopted and provide the relevant disclosures in ASC 250 in the first interim and annual periods in which the guidance is adopted. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805), Clarifying the Definition of a Business . The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets of businesses. The effective date of the standard will be for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance on a prospective basis. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and related disclosures. The FASB has recently issued or discussed a number of proposed standards on topics such as financial statement presentation, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on the Company’s reporting. The Company has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company currently has four reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments, and (iv) corporate. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of March 31, 2017 , the Company owned, leased or managed 78 properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. The Debt Investment segment consists primarily of loans and securities which the Company plans to monetize as part of its transformation to a leisure and entertainment company. The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable (Note 8) and management fees pursuant to the Management Agreement (Note 12). Segment information for previously reported periods has been restated to reflect the change to the reportable segments in the fourth quarter of 2016. Summary financial data on the Company’s segments is given below, together with reconciliation to the same data for the Company as a whole: Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total Three Months Ended March 31, 2017 Revenues Golf course operations $ 46,296 $ — $ — $ — $ 46,296 Sales of food and beverages 12,845 — — — 12,845 Total revenues 59,141 — — — 59,141 Operating costs Operating expenses (B) 54,431 — — — 54,431 Cost of sales - food and beverages 4,032 — — — 4,032 General and administrative expense 700 65 1 1,145 1,911 General and administrative expense - acquisition and transaction expenses (C) 276 1,261 — 117 1,654 Management fee to affiliate — — — 2,677 2,677 Depreciation and amortization 5,793 — — — 5,793 Realized/unrealized loss on investments 120 — 3,269 — 3,389 Total operating costs 65,352 1,326 3,270 3,939 73,887 Operating loss (6,211 ) (1,326 ) (3,270 ) (3,939 ) (14,746 ) Other income (expenses) Interest and investment income 39 — 7,802 47 7,888 Interest expense (3,817 ) — (1,206 ) (411 ) (5,434 ) Other (loss) income, net (624 ) — 501 — (123 ) Total other income (expenses) (4,402 ) — 7,097 (364 ) 2,331 Income tax expense (D) — — — 539 539 Net (loss) income (10,613 ) (1,326 ) 3,827 (4,842 ) (12,954 ) Preferred dividends — — — (1,395 ) (1,395 ) (Loss) income applicable to common stockholders $ (10,613 ) $ (1,326 ) $ 3,827 $ (6,237 ) $ (14,349 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total March 31, 2017 Investments $ 278,686 $ 1,132 $ 407,589 $ — $ 687,407 Cash and restricted cash 13,681 1,254 1,545 117,703 134,183 Other assets 34,427 2,136 1,444 158 38,165 Total assets 326,794 4,522 410,578 117,861 859,755 Debt, net 114,851 — 310,630 51,214 476,695 Other liabilities 167,342 1,578 5,967 4,333 179,220 Total liabilities 282,193 1,578 316,597 55,547 655,915 Preferred stock — — — 61,583 61,583 Noncontrolling interest — — — — — Equity attributable to common stockholders $ 44,601 $ 2,944 $ 93,981 $ 731 $ 142,257 Additions to investments in real estate during the three months ended March 31, 2017 $ 3,496 $ 138 $ — $ — $ 3,634 Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total Three Months Ended March 31, 2016 Revenues Golf course operations $ 48,597 $ — $ — $ — $ 48,597 Sales of food and beverages 13,561 — — — 13,561 Total revenues 62,158 — — — 62,158 Operating costs Operating expenses (B) 58,219 — — — 58,219 Cost of sales - food and beverages 4,597 — — — 4,597 General and administrative expense 839 2 37 1,883 2,761 General and administrative expense - acquisition and transaction expenses (C) 126 12 — 38 176 Management fee to affiliate — — — 2,675 2,675 Depreciation and amortization 6,031 — — — 6,031 Impairment — — 2,308 — 2,308 Realized/unrealized loss on investments 1 — 2,006 — 2,007 Total operating costs 69,813 14 4,351 4,596 78,774 Operating loss (7,655 ) (14 ) (4,351 ) (4,596 ) (16,616 ) Other income (expenses) Interest and investment income 42 — 20,991 6 21,039 Interest expense (2,665 ) — (9,924 ) (945 ) (13,534 ) Gain on deconsolidation — — 82,130 — 82,130 Other (loss) income, net (283 ) — 603 — 320 Total other income (expenses) (2,906 ) — 93,800 (939 ) 89,955 Income tax expense 44 — — — 44 Net (loss) income (10,605 ) (14 ) 89,449 (5,535 ) 73,295 Preferred dividends — — — (1,395 ) (1,395 ) Net loss attributable to noncontrolling interest 124 — — — 124 (Loss) income applicable to common stockholders $ (10,481 ) $ (14 ) $ 89,449 $ (6,930 ) $ 72,024 (A) The following table summarizes the investments and debt in the Debt Investments segment: March 31, 2017 Investments Debt Outstanding Carrying Outstanding Carrying Unlevered real estate securities $ 4,000 $ 2,032 $ — $ — Levered real estate securities 319,380 326,878 310,630 310,630 Real estate related and other loans (E) 78,125 59,043 — — Other investments N/A 19,636 — — $ 401,505 $ 407,589 $ 310,630 $ 310,630 (B) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.8 million and $1.0 million for the three months ended March 31, 2017 and 2016 , respectively. (C) Acquisition and transaction expense includes costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expense also includes personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues. (D) Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment. (E) Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million . |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | REAL ESTATE SECURITIES The following is a summary of the Company’s real estate securities at March 31, 2017 , all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gains Losses Carrying Number of Securities Rating (C) Coupon Yield Life Principal Subordination (E) ABS - Non-Agency RMBS $ 4,000 $ 2,338 $ (1,521 ) $ 817 $ 1,215 $ — $ 2,032 1 C 1.37 % 25.44 % 9.2 28.8 % Total Securities, Available-for-Sale (F) $ 4,000 $ 2,338 $ (1,521 ) $ 817 $ 1,215 $ — $ 2,032 1 FNMA/FHLMC (A) 319,380 337,972 (11,094 ) 326,878 — — 326,878 1 AAA 3.50 % 3.13 % 7.7 N/A Total Securities, Pledged as Collateral (F) $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 (A) As of March 31, 2017 , the Company reclassified gross unrealized losses of $11.1 million from other comprehensive income into earnings on FNMA/FHLMC securities that the Company intends to sell and recorded in realized/unrealized (gain) loss on investments in the Consolidated Statements of Operations. (B) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (C) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. The Company uses an implied AAA rating for the Fannie Mae/Freddie Mac ( “ FNMA/FHLMC ”) securities. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (D) The weighted average life is based on the timing of expected cash flows on the assets. (E) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. (F) The total outstanding face amount was $319.4 million for fixed rate securities and $4.0 million for floating rate securities. Unrealized losses that are considered other-than-temporary are recognized currently in earnings. During the three months ended March 31, 2017 , the Company recorded other-than-temporary impairment charges (“OTTI”) of $0.6 million with respect to real estate securities (gross of $0.0 million of other-than-temporary impairment recognized in other comprehensive income). Based on management’s analysis of the securities, the performance of the underlying loans and changes in market factors, the Company noted adverse changes in the expected cash flows on certain of these securities and concluded that they were other-than-temporarily impaired. Any remaining unrealized losses on the Company’s securities were primarily the result of changes in market factors, rather than issuer-specific credit impairment. The Company performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support that the carrying values of such securities were fully recoverable over their expected holding period. The following table summarizes the Company's securities in an unrealized loss position as of March 31, 2017 . Amortized Cost Basis Gross Unrealized Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-than-Temporary Impairment (A) After Impairment Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Less Than Twelve $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 AAA 3.50 % 3.13 % 7.7 Twelve or More — — — — — — — — — — % — % — Total $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 AAA 3.50 % 3.13 % 7.7 (A) As of March 31, 2017 , the Company reclassified gross unrealized losses of $11.1 million from other comprehensive income into earnings on FNMA/FHLMC securities that the Company intends to sell and recorded in realized/unrealized (gain) loss on investments in the Consolidated Statements of Operations. The Company performed an assessment of all of its debt securities that are in an unrealized loss position (unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value). The securities that the Company intends to sell have a fair value of $326.9 million and amortized cost basis after impairment of $326.9 million as of March 31, 2017 . The Company has no activity related to credit losses on debt securities for the three months ended March 31, 2017 . The table below summarizes the geographic distribution of the collateral securing the asset-backed securities (“ABS”) at March 31, 2017 : ABS - Non-Agency RMBS Geographic Location Outstanding Face Amount Percentage Western U.S. $ 1,295 32.4 % Northeastern U.S. 605 15.1 % Southeastern U.S. 1,065 26.6 % Midwestern U.S. 430 10.8 % Southwestern U.S. 605 15.1 % $ 4,000 100.0 % Geographic concentrations of investments expose the Company to the risk of economic downturns within the relevant regions, particularly given the current unfavorable market conditions. These market conditions may make regions more vulnerable to downturns in certain market factors. Any such downturn in a region where the Company holds significant investments could have a material, negative impact on the Company. In March 2017, the Company sold $289.7 million face amount of agency FNMA/FHLMC fixed-rate securities at an average price of 98.8% of par for total proceeds of $286.1 million and recognized a loss on sale of securities of $2.8 million . The Company repaid $277.8 million of repurchase agreements associated with these securities. Securities Pledged as Collateral These government agency securities were sold under agreements to repurchase which are treated as collateralized financing transactions. Although being pledged as collateral, securities financed through a repurchase agreement remains on the Company's Consolidated Balance Sheets as an asset and cash received from the purchaser is recorded on the Company's Consolidated Balance Sheets as a liability. |
REAL ESTATE RELATED AND OTHER L
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTAGE LOANS | REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS Loans are accounted for based on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. Loans acquired with the intent to sell are classified as held-for-sale. The following is a summary of real estate related and other loans and residential mortgage loans at March 31, 2017 . The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment. Loan Type Outstanding Carrying Loan Weighted Weighted Average Coupon Weighted Average Life Floating Rate Loans as % of Face Amount Delinquent Face Amount (C) Mezzanine Loans $ 17,767 $ — 2 0.00 % 8.39 % 0.0 100.0 % $ 17,767 Corporate Loans 123,812 59,043 4 22.49 % 15.40 % 0.5 — % 59,384 Total Real Estate Related and other Loans Held-for-Sale, Net $ 141,579 $ 59,043 6 22.49 % 14.52 % 0.5 12.5 % $ 77,151 Residential Mortgage Loans Held-for-Sale, Net (D) $ 769 $ 228 3 3.11 % 3.42 % 0.4 100.0 % $ 628 (A) Carrying value includes negligible interest receivable for the residential housing loans. (B) The weighted average maturity is based on the timing of expected cash flows on the assets. (C) Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of March 31, 2017 , $77.2 million face amount of real estate related and other loans was on non-accrual status. (D) Loans acquired at a discount for credit quality. Residential mortgage loans held-for-sale, net is recorded in receivables and other assets on the Consolidated Balance Sheets. The following is a summary of real estate related and other loans by maturities at March 31, 2017 : Year of Maturity Outstanding Face Amount Carrying Value Number of Loans Delinquent (A) $ 77,151 $ 147 5 Period from April 1, 2017 to December 31, 2017 — — — 2018 — — — 2019 64,428 58,896 1 2020 — — — 2021 — — — 2022 — — — Thereafter — — — Total $ 141,579 $ 59,043 6 (A) Includes loans that are non-performing, in foreclosure, or under bankruptcy Activities relating to the carrying value of the Company’s real estate related and other loans and residential mortgage loans are as follows: Held-for-Sale Real Estate Related and Other Loans Residential Mortgage Loans (A) Balance at December 31, 2016 $ 55,612 $ 231 Purchases / additional fundings — — Interest accrued to principal balance 3,431 — Principal pay downs — (3 ) Balance at March 31, 2017 $ 59,043 $ 228 (A) Recorded in receivables and other assets on the Consolidated Balance Sheets. There was no change in the loss allowance on the Company's real estate related and other loans and residential mortgage loans during the three months ended March 31, 2017 . The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at March 31, 2017 : Real Estate Related Residential Mortgage Loans Geographic Location Outstanding Face Amount Percentage Outstanding Face Amount Percentage Northeastern U.S. $ — — % $ 523 68.0 % Southeastern U.S. — — % 246 32.0 % Foreign 63,454 100.0 % — — % $ 63,454 100.0 % $ 769 100.0 % Other (A) 78,125 $ 141,579 (A) Includes corporate loans which are not directly secured by real estate assets. |
INVESTMENTS IN REAL ESTATE, NET
INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECATION | INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION The following table summarizes the Company’s investments in real estate related to its Traditional and Entertainment Golf businesses: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 84,319 $ — $ 84,319 $ 84,319 $ — $ 84,319 Buildings and improvements 145,243 (42,737 ) 102,506 144,690 (39,402 ) 105,288 Furniture, fixtures and equipment 29,900 (21,250 ) 8,650 29,132 (20,516 ) 8,616 Capital leases - equipment 20,945 (5,645 ) 15,300 20,844 (4,818 ) 16,026 Construction in progress 5,677 — 5,677 3,362 — 3,362 Total Investments in Real Estate $ 286,084 $ (69,632 ) $ 216,452 $ 282,347 $ (64,736 ) $ 217,611 |
INTANGIBLES, NET OF ACCUMULATED
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | INTANGIBLES, NET OF ACCUMULATED AMORTIZATION The following table summarizes the Company’s intangible assets related to the Traditional and Entertainment Golf businesses: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (76 ) $ 624 $ 700 $ (70 ) $ 630 Leasehold intangibles (A) 48,107 (13,591 ) 34,516 48,107 (12,550 ) 35,557 Management contracts 35,207 (11,242 ) 23,965 35,207 (10,434 ) 24,773 Internally-developed software 800 (520 ) 280 800 (480 ) 320 Membership base 5,236 (2,431 ) 2,805 5,236 (2,244 ) 2,992 Nonamortizable liquor licenses 1,176 — 1,176 840 — 840 Total Intangibles $ 91,226 $ (27,860 ) $ 63,366 $ 90,890 $ (25,778 ) $ 65,112 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding the Company’s debt obligations at March 31, 2017 : Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life(Years) Face Amount of Repurchase Agreements (C) FNMA/FHLMC Securities Mar 2017 $ 310,630 $ 310,630 Apr 2017 1.02% 1.02 % 0.1 $ — 310,630 310,630 1.02 % 0.1 — Credit Facilities and Capital Leases Traditional Golf Term Loan (D)(E) June 2016 102,000 98,979 Jul 2019 LIBOR+4.70% 7.92 % 2.3 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 26.7 200 Capital Leases (Equipment) May 2014 - Mar 2017 15,672 15,672 Sep 2018 - Sep 2022 3.00% to 16.16% 6.56 % 3.9 — 117,872 114,851 7.72 % 2.5 102,200 Corporate Junior subordinated notes payable (F) Mar 2006 51,004 51,214 Apr 2035 LIBOR+2.25% 3.26 % 18.1 51,004 51,004 51,214 3.26 % 18.1 51,004 Total debt obligations $ 479,506 $ 476,695 2.88 % 2.6 $ 153,204 (A) Weighted average, including floating and fixed rate classes. (B) Including the effect of deferred financing costs. (C) The repurchase agreement had $0.2 million of accrued interest payable at March 31, 2017 . The counterparty on the repurchase agreement is Jefferies. The Company has margin exposures on the repurchase agreement related to the financing of FNMA/FHLMC securities. The underlying collateral of the repurchase agreement is fixed rate FNMA/FHLMC securities with the following value at March 31, 2017 : $319.4 million outstanding face amount, $326.9 million amortized cost basis, $326.9 million carrying value and a weighted average life of 7.7 years . To the extent that the value of the collateral underlying the repurchase agreement declines, the Company may be required to post margin, which could significantly impact its liquidity. (D) The golf term loan is collateralized by 22 golf properties. The carrying amount of the golf term loan is reported net of amortized deferred financing costs of $3.0 million as of March 31, 2017 . (E) Interest rate based on 1 month LIBOR plus 4.70% with a LIBOR floor of 1.80% . At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80% . (F) Interest rate based on 3 month LIBOR plus 2.25% . See Note 4 for information about the FNMA/FHLMC repurchase agreement activity for the three months ended March 31, 2017 . Traditional Golf leases certain golf carts and other equipment under capital lease agreements. The agreements typically provide for minimum rentals plus executory costs. Lease terms range from 36 to 66 months. Certain leases include bargain purchase options at lease expiration. The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of March 31, 2017 are as follows: April 1, 2017 - December 31, 2017 $ 3,521 2018 4,685 2019 4,540 2020 3,259 2021 1,684 2022 173 Thereafter — Total minimum lease payments 17,862 Less: imputed interest (2,190 ) Present value of net minimum lease payments $ 15,672 The Company’s credit facilities contain various customary loan covenants, including certain coverage ratios. The Company was in compliance with all of these covenants as of March 31, 2017 . |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company’s derivative instruments are comprised of an interest rate cap and TBAs. Derivative assets with a fair value of $0.4 million and $0.9 million as of March 31, 2017 and December 31, 2016 , respectively, were recorded within receivables and other assets on the Consolidated Balance Sheets. Derivative liabilities with a fair value of $2.0 million and zero as of March 31, 2017 and December 31, 2016 , respectively, were recorded within accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets. The following table summarizes (gains) losses recorded in relation to derivatives: Three Months Ended March 31, Income Statement Location 2017 2016 Cash flow hedges Deferred hedge gain reclassified from Accumulated Other Comprehensive Income (“AOCI”) into earnings Interest expense — (20 ) Non-hedge derivatives Unrealized loss on interest rate derivatives Realized/unrealized (gain) loss on investments $ 120 $ — Unrealized loss recognized related to TBAs Realized/unrealized (gain) loss on investments 2,382 341 Realized (gain) loss on settlement of TBAs Realized/unrealized (gain) loss on investments (2,474 ) 7,536 As of both March 31, 2017 and December 31, 2016 , the Company had zero expected reclassification of deferred hedges from AOCI into earnings over the next 12 months. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Summary Table The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2017 : Carrying Estimated Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,032 $ 2,032 Pricing models Real estate securities, available-for-sale - pledged as collateral 326,878 326,878 Broker/counterparty quotations, pricing services Real estate related and other loans, held-for-sale, net 59,043 64,575 Pricing models Residential mortgage loans, held-for-sale, net (B) 228 259 Broker/counterparty quotations, pricing models Cash and cash equivalents 126,970 126,970 Restricted cash 7,213 7,213 Non-hedge derivative assets (C) 364 364 Counterparty quotations, pricing services Liabilities Repurchase agreements 310,630 310,630 Counterparty quotations, market comparables Credit facilities and obligations under capital leases 114,851 117,872 Pricing models Junior subordinated notes payable 51,214 26,714 Pricing models Non-hedge derivative liabilities (C) 2,010 2,010 Counterparty quotations, pricing services (A) Methods are listed in order of priority. In the case of real estate securities and real estate related and other loans, broker quotations are obtained if available and practicable, otherwise counterparty quotations or pricing service valuations are obtained or, finally, internal pricing models are used. Internal pricing models are only used for (i) securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) loans or debt obligations which are private and untraded. (B) Residential mortgage loans held-for-sale, net is recorded in receivables and other assets on the Consolidated Balance Sheets. (C) Represents derivative assets and liabilities, including an interest rate cap and TBA forward contracts (Note 9). Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using non-binding market quotations, pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair value may be based upon broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications or management’s good faith estimate, and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. A significant portion of the Company’s loans, securities and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models or quotations subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, The Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities, real estate related and other loans and residential mortgage loans categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Significant increases (decreases) in any of the discount rates, default rates or loss severities in isolation would result in a significantly lower (higher) fair value measurement. The impact of changes in prepayment speeds would have differing impacts on fair value, depending on the seniority of the investment. Generally, a change in the default assumption is accompanied by directionally similar changes in the assumptions used for the loss severity and the prepayment speed. Recurring Fair Value Measurements - Real Estate Securities and Derivatives The following table summarizes financial assets and liabilities measured at fair value on a recurring basis at March 31, 2017 : Fair Value Carrying Value Level 2 Level 3 Total Market Quotations (Observable) Market Quotations (Unobservable) Internal Pricing Models Assets Real estate securities, available-for-sale: ABS - Non-Agency RMBS $ 2,032 $ — $ — $ 2,032 $ 2,032 Real estate securities, available-for-sale total $ 2,032 $ — $ — $ 2,032 $ 2,032 Real estate securities, available-for-sale - pledged as collateral: FNMA/FHLMC $ 326,878 $ 326,878 $ — $ — $ 326,878 Real estate securities, available-for-sale - pledged as collateral total $ 326,878 $ 326,878 $ — $ — $ 326,878 Derivative assets: Interest rate cap, not treated as hedge $ 364 $ 364 $ — $ — $ 364 Derivative assets total $ 364 $ 364 $ — $ — $ 364 Liabilities Derivative liabilities: TBAs, not treated as hedges $ 2,010 $ 2,010 $ — $ — $ 2,010 Derivative liabilities total $ 2,010 $ 2,010 $ — $ — $ 2,010 Significant Unobservable Inputs The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 . Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 817 $ 2,032 12.0 % 4.6 % 4.2 % 64.9 % Total $ 817 $ 2,032 All of the inputs used have some degree of market observability, based on the Company’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions. The Company uses assumptions that generate its best estimate of future cash flows of each respective security. The discount rates the Company uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which the Company transacts have become less liquid, the Company has had to rely on fewer data points in this analysis. Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model. The prepayment speed vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment speed vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan-level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services. Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. The Company typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also affect loss severity. The Company considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections. The Company’s investments in instruments measured at fair value on a recurring basis using Level 3 inputs changed during the three months ended March 31, 2017 as follows: ABS - Non-Agency RMBS Balance at December 31, 2016 $ 1,950 Total gains (losses) (A) Included in other comprehensive income (loss) 47 Amortization included in interest income 47 Purchases, sales and repayments (A) Proceeds (12 ) Balance at March 31, 2017 $ 2,032 (A) None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. There were no purchases or sales during the three months ended March 31, 2017 . There were no transfers into or out of Level 3 during the three months ended March 31, 2017 . Non-Recurring Fair Value Measurements - Loans Loans which the Company does not have the ability or intent to hold into the foreseeable future are classified as held-for-sale. Held-for-sale loans are carried at the lower of amortized cost or fair value and are therefore recorded at fair value on a non-recurring basis. These loans were written down to fair value at the time of the impairment, based on broker quotations, pricing service quotations or internal pricing models. All the loans were within Level 3 of the fair value hierarchy. For real estate related and other loans, the most significant inputs used in the valuations are the amount and timing of expected future cash flows, market yields and the estimated collateral value of such loan investments. The following table summarizes certain information for real estate related and other loans as of March 31, 2017 : Significant Input Range Weighted Average Loan Type Carrying Value Fair Value Discount Rate Loss Severity Discount Rate Loss Severity Corporate Loans 59,043 64,575 0.0%-22.5% 0.0%-100.0% 22.5 % 48.0 % Total Real Estate Related and Other Loans Held-for-Sale, Net (A) $ 59,043 $ 64,575 (A) Excludes $17.8 million face amount of mezzanine loans which have a zero carrying value. Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Repurchase agreements Level 2 Valuation technique is based on market comparables. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Collateral funding spreads Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE A. Equity The following is a summary of the changes in the Company’s outstanding options for the three months ended March 31, 2017 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2016 5,126,906 $ 2.79 Expired (40,330 ) 14.44 Balance at March 31, 2017 5,086,576 $ 2.70 5.91 Exercisable at March 31, 2017 3,934,081 $ 2.77 5.81 As of March 31, 2017 , the Company’s outstanding options were summarized as follows: Issued Prior to 2011 Issued in 2011 and thereafter Total Held by the Manager 71,915 3,857,748 3,929,663 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 4,085 1,152,495 1,156,580 Issued to the independent directors — 333 333 Total 76,000 5,010,576 5,086,576 Weighted average strike price $ 12.44 $ 2.55 $ 2.70 On February 27, 2017 , the Company declared dividends of $0.609375 , $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning February 1, 2017 and ending April 30, 2017. Dividends totaling $1.4 million were paid on April 28, 2017 . In January 2017, the Company issued a total of 18,074 shares of its common stock to its independent directors as a component of their annual compensation. B. Earnings Per Share The Company is required to present both basic and diluted earnings per share (“EPS”). The following table shows the amounts used in computing basic and diluted EPS: Three Months Ended March 31, 2017 2016 Numerator for basic and diluted earnings per share: (Loss) Income Applicable to Common Stockholders $ (14,349 ) $ 72,024 Denominator: Denominator for basic earnings per share - weighted average shares 66,841,977 66,654,598 Effect of dilutive securities Options — 1,630,300 Denominator for diluted earnings per share - adjusted weighted average shares 66,841,977 68,284,898 Basic earnings per share: (Loss) Income Applicable to Common Stock, per share $ (0.21 ) $ 1.08 Diluted earnings per share: (Loss) Income Applicable to Common Stock, per share $ (0.21 ) $ 1.05 Basic EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. The Company’s common stock equivalents are its outstanding stock options. During the three months ended March 31, 2017 and 2016 , the Company had 151,234 and 455,115 antidilutive options, respectively. During the three months ended March 31, 2017 , based on the treasury stock method, the Company had 1,941,409 potentially dilutive common stock equivalents which were excluded due to the Company's loss position. During the three months ended March 31, 2016 , based on the treasury stock method, the Company had 1,630,300 dilutive common stock equivalents, resulting from its outstanding options. Income (loss) applicable to common stockholders is equal to net income (loss) less preferred dividends and net income (loss) attributable to noncontrolling interest. |
TRANSACTIONS WITH AFFILIATES AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 3 Months Ended |
Mar. 31, 2017 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES Management Agreement The Company is party to a Management Agreement with FIG LLC, its Manager and an affiliate of Fortress, which provides for automatically renewing one -year terms subject to certain termination rights. The Manager’s performance is reviewed annually and the Management Agreement may be terminated by the Company by payment of a termination fee, as defined in the Management Agreement, equal to the amount of management fees earned by the Manager during the 12 consecutive calendar months immediately preceding the termination, upon the affirmative vote of at least two-thirds of the independent directors, or by a majority vote of the holders of common stock. Pursuant to the Management Agreement, the Manager provides for a management team and other professionals who are responsible for implementing our business strategy, subject to the supervision of our board of directors. Our Manager is responsible for, among other things, (i) setting investment criteria in accordance with broad investment guidelines adopted by our board of directors, (ii) sourcing, analyzing and executing acquisitions, (iii) providing financial and accounting management services and (iv) performing other duties as specified in the Management Agreement. For performing these services, the Company pays the Manager an annual management fee equal to 1.5% of the gross equity of the Company, as defined, including adjustments for return of capital dividends. The Management Agreement provides that the Company will reimburse the Manager for various expenses incurred by the Manager or its officers, employees and agents on the Company’s behalf, including costs of legal, accounting, tax, auditing, administrative and other similar services rendered for the Company by providers retained by the Manager or, if provided by the Manager’s employees, in amounts which are no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. In addition to expense reimbursements for expenses incurred by the Manager, the Company is responsible for reimbursing the Manager for certain expenses incurred by the Company that are initially paid by the Manager on behalf of the Company. To provide an incentive for the Manager to enhance the value of the common stock, the Manager is entitled to receive an incentive return (the “Incentive Compensation’’) on a cumulative, but not compounding, basis in an amount equal to the product of (A) 25% of the dollar amount by which (1) (a) the Funds from Operations (defined as the net income applicable to common stockholders before Incentive Compensation, excluding extraordinary items, plus depreciation of operating real estate and after adjustments for unconsolidated subsidiaries, if any) of the Company per share of common stock (based on the weighted average number of shares of common stock outstanding) plus (b) gains (or losses) from debt restructuring and from sales of property and other assets per share of common stock (based on the weighted average number of shares of common stock outstanding), exceed (2) an amount equal to (a) the weighted average of the price per share of common stock in the initial public offering (“IPO”) and the value attributed to the net assets transferred to the Company by its predecessor, and in any subsequent offerings by the Company (adjusted for prior return of capital dividends or capital distributions) multiplied by (b) a simple interest rate of 10% per annum (divided by four to adjust for quarterly calculations) multiplied by (B) the weighted average number of shares of common stock outstanding. Amounts incurred under the Management Agreement Three Months Ended March 31, 2017 2016 Management fees $ 2,552 $ 2,550 Expense reimbursement to the Manager 125 125 Incentive compensation — — Total Management fee to affiliate $ 2,677 $ 2,675 At March 31, 2017 , Fortress, through its affiliates, and principals of Fortress, owned 5.1 million shares of the Company’s common stock and Fortress, through its affiliates, had options relating to an additional 3.9 million shares of the Company’s common stock (Note 11). At both March 31, 2017 and December 31, 2016 , due to affiliates was comprised of $0.9 million in management fees and expense reimbursements payable to the Manager. Other Affiliated Entities In April 2006, the Company securitized Subprime Portfolio I and, through Securitization Trust 2006, entered into a servicing agreement with a subprime home equity mortgage lender (the “Subprime Servicer”) to service this portfolio. In July 2006, private equity funds managed by an affiliate of the Company’s Manager completed the acquisition of the Subprime Servicer. As compensation under the servicing agreement, the Subprime Servicer receives, on a monthly basis, a net servicing fee equal to 0.5% per annum on the unpaid principal balance of the portfolio. In March 2007, through Securitization Trust 2007, the Company entered into a servicing agreement with the Subprime Servicer to service Subprime Portfolio II under substantially the same terms. At March 31, 2017 , the outstanding unpaid principal balances of Subprime Portfolios I and II were approximately $227.3 million and $338.4 million , respectively. The Company received negligible cash inflows from the retained interests of Subprime Portfolios I and II during the three months ended March 31, 2017 and 2016 . The Company's exposure to loss is solely limited to the carrying amount of the residual interests and retained bonds which are issued by Subprime Portfolios I and II. In April 2010, the Company, through two of its CDOs, made a cash investment of $75.0 million in a corporate loan in the resorts industry (“the resorts-related loan”) to a portfolio company of a private equity fund managed by an affiliate of the Company’s Manager. The Company’s chairman is a director of and has an indirect ownership interest in the borrower. This investment improved the applicable CDOs’ results under some of their respective tests, and is expected to yield approximately 22.5% . The maturity of the resorts-related loan has been extended to June 2019. Interest on the loan will be accrued and deferred until maturity. In September 2016, the Company received a $109.9 million pay down on the loan. As of March 31, 2017 , the Company held on its balance sheet total investments of $64.4 million face amount of loans issued by affiliates of the Manager. The Company earned approximately $3.4 million and $8.1 million of interest on investments issued by affiliates of the Manager for the three months ended March 31, 2017 and 2016 , respectively. In each instance described above, affiliates of the Company’s Manager have an investment in the applicable affiliated fund and receive from the fund, in addition to management fees, incentive compensation if the fund’s aggregate investment returns exceed certain thresholds. A principal of the Manager owned or leased aircraft that the Company chartered from a third-party aircraft operator for business purposes in the course of operations. The Company paid the aircraft operator market rates for the charters. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is and may become, from time to time, involved in legal actions in the ordinary course of business, including governmental and administrative investigations, inquiries and proceedings concerning employment, labor, environmental and other claims. Although management is unable to predict with certainty the eventual outcome of any legal action, management believes the ultimate liability arising from such actions, individually and in the aggregate, which existed at March 31, 2017 , will not materially affect the Company’s consolidated results of operations, financial position or cash flow. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on our financial results. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following: Three Months Ended March 31, 2017 2016 Current: Federal $ 539 $ 43 State and Local — 11 Total Current Provision $ 539 $ 54 Deferred: Federal $ — $ (9 ) State and Local — (1 ) Total Deferred Benefit $ — $ (10 ) Total Provision for Income Taxes $ 539 $ 44 On February 23, 2017, the Company revoked its election to be treated as a REIT effective January 1, 2017. The Company operated in a manner intended to qualify as a REIT for federal income tax purposes through December 31, 2016. The change in tax status has had no effect on the Company’s Consolidated Financial Statements as the corresponding net deferred tax asset created as a result of the tax status change has been fully offset with a valuation allowance. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of March 31, 2017 are presented below: March 31, 2017 December 31, 2016 Deferred tax assets: Allowance for loan losses $ 391 $ 358 Depreciation and amortization 39,039 38,598 Accrued expenses 1,764 2,885 Interest 13,234 16,503 Net operating losses 176,821 162,629 Other 2,094 2,036 Total deferred tax assets 233,343 223,009 Less valuation allowance (153,541 ) (133,192 ) Net deferred tax assets $ 79,802 $ 89,817 Deferred tax liabilities: Leaseholds 13,529 13,681 Cancellation of debt 66,178 75,632 Other 95 504 Total deferred tax liabilities $ 79,802 $ 89,817 Net deferred tax assets (A) $ — $ — (A) Recorded in receivables and other assets on the Consolidated Balance Sheets. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. The Company recorded a valuation allowance against its deferred tax assets as of March 31, 2017 as management does not believe that it is more likely than not that the deferred tax assets will be realized. |
IMPAIRMENT
IMPAIRMENT | 3 Months Ended |
Mar. 31, 2017 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
IMPAIRMENT | IMPAIRMENT The following table summarizes the amounts the Company recorded in the Consolidated Statement of Operations: Three Months Ended March 31, 2017 2016 Debt securities — 110 Valuation allowance on loans — 2,198 Total impairment $ — $ 2,308 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These Consolidated Financial Statements include a discussion of material events, if any, that have occurred subsequent to March 31, 2017 through the issuance of these Consolidated Financial Statements. On May 4, 2017, the Company declared dividends of $0.609375 , $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning May 1, 2017 and ending July 31, 2017. Dividends totaling $1.4 million will be paid on July 31, 2017 to shareholders of record on May 15, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. 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. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2017. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2016 . |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period’s presentation. In connection with the Company’s continued transformation from a financial services company to a leisure and entertainment company, including the announcement of the new management team in September 2016, the revocation of its REIT election effective January 1, 2017, as well as the monetization and planned exit of our real estate related debt positions, the Company’s Consolidated Statements of Operations have been changed to reflect an operating company presentation. We have reclassified driving range revenue, including the monthly membership program offered at most of our public properties (“The Players Club’’) and miscellaneous revenue associated with operations from “Other revenue” to “Golf course operations”. We have reclassified expenses associated with the cost of merchandise sold from “Cost of sales - golf” to “Operating expenses.” We have added “Loan and security servicing expense” to “General and administrative expense.” The gains and losses associated with derivative instruments have been reclassified from “Other income (loss), net” to “Realized/unrealized (gain) loss on investments” to include balances as part of our operating income (loss). The Company did not make changes to its Consolidated Balance Sheets given the carrying value of the real estate related investments, including agency FNMA/FHLMC securities, held by the Company still represents a significant amount on the Company's Consolidated Balance Sheets at March 31, 2017 . |
Golf Course Operations | Golf Course Operations — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) are generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues is recognized in the month earned. Membership dues received in advance are included in deferred revenues and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. The membership dues are generally structured to cover the club operating costs and membership services. Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. |
Operating Expenses | Operating Expenses — Operating expenses for Traditional Golf consist primarily of payroll, equipment and cart leases, utilities, repairs and maintenance, supplies, seed, soil and fertilizer, marketing and operating lease rent expense. Many of the Traditional Golf properties and related facilities are leased under long-term operating leases. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. The majority of lease terms range from 10 to 20 years , and typically, the leases contain renewal options. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease. These scheduled rent increases or decreases are recognized on a straight-line basis over the term of the lease. Increases result in an accrual, which is included in accounts payable, accrued expenses and other liabilities, and decreases result in a receivable, which is included in receivables and other assets, for the amount by which the cumulative straight-line rent differs from the contractual cash rent. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities — All derivatives are recognized as either assets or liabilities on the balance sheet and measured at fair value. The Company reports the fair value of derivative instruments gross of cash paid or received pursuant to credit support agreements and fair value is reflected on a net counterparty basis when the Company believes a legal right of offset exists under an enforceable netting agreement. Fair value adjustments affect either equity or net income depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as a cash flow hedge or a fair value hedge. Derivative transactions are entered into by the Company solely for risk management purposes in the ordinary course of business. In determining whether to hedge a risk, the Company may consider whether other assets, liabilities, firm commitments and anticipated transactions already offset or reduce the risk. All transactions undertaken as hedges are entered into with a view towards minimizing the potential for economic losses that could be incurred by the Company. As of March 31, 2017 , the Company has no derivative instruments that qualify and are designated as hedging instruments, but has one interest rate cap with a fair value of $0.4 million which is not designated as a hedge. The Company transacts in the To Be Announced mortgage backed securities (“TBA”) market. TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. The Company primarily engages in TBA transactions for purposes of managing interest rate risk and market risk associated with our Agency residential mortgage backed securities (“RMBS”) investments for which we have exposure to interest rate and market risk volatility. The Company typically does not take delivery of TBAs, but rather settles the associated receivable and payable with its trading counterparties on a net basis. As part of its TBA activities, the Company may “roll” its TBA positions, whereby it may sell (buy) securities for delivery (receipt) in an earlier month and simultaneously contract to repurchase (sell) similar securities at an agreed-upon price on a fixed date in a later month. The Company accounts for its TBA transactions as non-hedge instruments, with changes in market value recorded in the Statement of Operations. As of March 31, 2017 , the Company held two short TBA contracts totaling $319.0 million in notional amount of Agency RMBS. As of March 31, 2017 and December 31, 2016 , the Company funded approximately $1.1 million and zero , respectively, for margin calls related to TBA contracts. The Company’s derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company seeks to reduce such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. Management does not expect any material losses as a result of default by other parties. |
Investments in Real Estate, Net | Investments in Real Estate, Net — Real estate and related improvements are recorded at cost less accumulated depreciation. Costs that both materially add value to an asset and extend the useful life of an asset by more than a year are capitalized. With respect to golf course improvements (included in buildings and improvements), costs associated with original construction, significant replacements, permanent landscaping, sand traps, fairways, tee boxes or greens are capitalized. All other asset-related costs that do not meet these criteria, such as minor repairs and routine maintenance, are expensed as incurred. Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs of sale. A disposal of a component of an entity or a group of components of an entity are reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Discontinued operations are retroactively reclassified to income (loss) from discontinued operations for all periods presented. Traditional Golf leases certain golf carts and other equipment that are classified as capital leases. The value of capital leases is recorded as an asset on the balance sheet, along with a liability related to the associated payments. Depreciation of capital lease assets is calculated using the straight-line method over the shorter of the estimated useful lives and the expected lease terms. The cost of equipment under capital leases is included in investments in real estate in the Consolidated Balance Sheets. Payments under the leases are treated as reductions of the liability, with a portion being recorded as interest expense under the effective interest method. Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years |
Intangibles | Intangibles — Intangible assets and liabilities relating to Traditional Golf consist primarily of leasehold advantages (disadvantages), management contracts and membership base. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of the transaction. The value of a leasehold advantage (disadvantage) is calculated based on the differential between market and contracted rent, which is tax effected and discounted to present value based on an after-tax discount rate corresponding to each golf property and is amortized over the term of the underlying lease agreement. The management contract intangible represents the Company’s golf course management contracts for both leased and managed properties. The management contract intangible for leased and managed properties is valued utilizing a discounted cash flow methodology under the income approach and is amortized over the term of the underlying lease or management agreements, respectively. The membership base intangible represents the Company’s relationship with its private country club members. The membership base intangible is valued using the multi-period excess earnings method under the income approach, and is amortized over the expected life of an active membership. Amortization of leasehold intangible assets and liabilities is included within operating expenses and amortization of all other intangible assets is included within depreciation and amortization in the Consolidated Statements of Operations. Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1 -26 years Management contracts 1 -26 years Internally-developed software 5 years Membership base 7 years |
Membership Deposit Liabilities | Membership Deposit Liabilities — Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf course operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. |
Other Investment | Other Investment — The Company owns a 23% economic interest in a limited liability company which owns preferred equity secured by a commercial real estate project. The Company accounts for this investment as an equity method investment. As of March 31, 2017 and December 31, 2016 , the carrying value of this investment was $19.6 million and $19.3 million , respectively. The Company evaluates its equity method investment for other than temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. |
Impairment of Real Estate and Finite-lived Intangible Assets | Impairment of Real Estate and Finite-lived Intangible Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. |
Investment in CDO Servicing Rights | Investments in CDO Servicing Rights — In February 2011, the Company, through one of its subsidiaries, purchased the management rights with respect to certain C-BASS Investment Management LLC (“C-BASS”) Collateralized Debt Obligations (“CDOs”) for $2.2 million pursuant to a bankruptcy proceeding. The Company initially recorded the cost of acquiring the collateral management rights as a servicing asset and subsequently amortizes this asset in proportion to, and over the period of, estimated net servicing income. Servicing assets are assessed for impairment on a quarterly basis, with impairment recognized as a valuation allowance. Key economic assumptions used in measuring any potential impairment of the servicing assets include the prepayment speeds of the underlying collateral, default rates, loss severities and discount rates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year. The standard will be effective for annual and interim periods beginning after December 15, 2017; however, all entities are allowed to adopt the standard as early as the original effective date (annual periods beginning after December 15, 2016). Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how to apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB issued ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers which amends the new revenue recognition guidance on performance obligations and 12 additional technical corrections and improvements. The Company is evaluating potential impacts of adopting this standard, and is in the process of reviewing customer contracts and revenue streams, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized. The Company expects to adopt the requirements of the new standard in the first quarter of 2018, and anticipates using the modified retrospective transition method. In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) . The standard requires lessees to recognize most leases on the balance sheet and addresses certain aspects of lessor accounting. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with an option to use certain relief. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount under the other-than-temporary impairment model. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted for annual periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The standard provides specific guidance over eight identified cash flow issues in order to reduce diversity in practice over the presentation and classification of certain types of cash receipts and cash payments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities should apply the standard using a retrospective transition method to each period presented. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230), Restricted Cash. The standard requires entities to show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows and provide a reconciliation to the related line items in the balance sheet. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance retrospectively when adopted and provide the relevant disclosures in ASC 250 in the first interim and annual periods in which the guidance is adopted. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805), Clarifying the Definition of a Business . The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets of businesses. The effective date of the standard will be for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance on a prospective basis. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and related disclosures. The FASB has recently issued or discussed a number of proposed standards on topics such as financial statement presentation, financial instruments and hedging. Some of the proposed changes are significant and could have a material impact on the Company’s reporting. The Company has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
Segment Reporting | SEGMENT REPORTING The Company currently has four reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments, and (iv) corporate. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of March 31, 2017 , the Company owned, leased or managed 78 properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. The Debt Investment segment consists primarily of loans and securities which the Company plans to monetize as part of its transformation to a leisure and entertainment company. The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable (Note 8) and management fees pursuant to the Management Agreement (Note 12). Segment information for previously reported periods has been restated to reflect the change to the reportable segments in the fourth quarter of 2016. |
Fair Value Measurements | Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Repurchase agreements Level 2 Valuation technique is based on market comparables. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Collateral funding spreads Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using non-binding market quotations, pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair value may be based upon broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications or management’s good faith estimate, and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. A significant portion of the Company’s loans, securities and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models or quotations subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, The Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities, real estate related and other loans and residential mortgage loans categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Significant increases (decreases) in any of the discount rates, default rates or loss severities in isolation would result in a significantly lower (higher) fair value measurement. The impact of changes in prepayment speeds would have differing impacts on fair value, depending on the seniority of the investment. Generally, a change in the default assumption is accompanied by directionally similar changes in the assumptions used for the loss severity and the prepayment speed. Significant Unobservable Inputs The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 . Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 817 $ 2,032 12.0 % 4.6 % 4.2 % 64.9 % Total $ 817 $ 2,032 All of the inputs used have some degree of market observability, based on the Company’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class (e.g., CMBS projections are developed differently than home equity ABS projections) but conform to industry conventions. The Company uses assumptions that generate its best estimate of future cash flows of each respective security. The discount rates the Company uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which the Company transacts have become less liquid, the Company has had to rely on fewer data points in this analysis. Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model. The prepayment speed vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment speed vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan-level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services. Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. The Company typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also affect loss severity. The Company considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections. |
Earnings Per Share | Basic EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. The Company’s common stock equivalents are its outstanding stock options. |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is and may become, from time to time, involved in legal actions in the ordinary course of business, including governmental and administrative investigations, inquiries and proceedings concerning employment, labor, environmental and other claims. Although management is unable to predict with certainty the eventual outcome of any legal action, management believes the ultimate liability arising from such actions, individually and in the aggregate, which existed at March 31, 2017 , will not materially affect the Company’s consolidated results of operations, financial position or cash flow. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on our financial results. |
Income Taxes | In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of realized/unrealized loss on investments and other income (loss), net | These items are comprised of the following: Three Months Ended March 31, 2017 2016 (Gain) on settlement of real estate securities $ — $ (5,917 ) Loss on settlement of real estate securities 2,803 — Unrealized loss on securities, intent-to-sell 558 — Loss on repayment/disposition of loans held-for-sale — 47 Realized (gain) loss on settlement of TBAs, net (2,474 ) 7,536 Unrealized loss on non-hedge derivative instruments 2,502 341 Realized/unrealized loss on investments $ 3,389 $ 2,007 Loss on lease modifications and terminations $ (158 ) $ (60 ) Loss on extinguishment of debt, net (146 ) (232 ) Collateral management fee income, net 122 232 Equity in earnings of equity method investees 379 371 Gain (loss) on disposal of long-lived assets 26 (6 ) Other (loss) income (346 ) 15 Other (loss) income, net $ (123 ) $ 320 |
Schedule of reclassification from accumulated other comprehensive income into net (loss) income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net (loss) income: Three Months Ended March 31, Accumulated Other Comprehensive Income ("AOCI") Components Income Statement Location 2017 2016 Net realized (gain) loss on securities Impairment Impairment $ — $ 54 (Gain) on settlement of real estate securities Realized/unrealized (gain) loss on investments — (5,917 ) Realized (gain) on deconsolidation of CDO VI Gain on deconsolidation — (20,682 ) $ — $ (26,545 ) Net realized (gain) loss on derivatives designated as cash flow hedges Amortization of deferred hedge (gain) Interest expense $ — $ (20 ) $ — $ (20 ) Total reclassifications $ — $ (26,565 ) |
Schedule of useful lives of property, plant, and equipment | Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years |
Schedule of amortization period | Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1 -26 years Management contracts 1 -26 years Internally-developed software 5 years Membership base 7 years |
Schedule of supplemental non cash investing and financing activities relating to CDOs | Three Months Ended March 31, 2016 Restricted cash generated from pay downs on securities and loans 2,310 Restricted cash used for repayments of CDO and other bonds payable 2,748 CDO VI deconsolidation: Real estate securities 43,889 Restricted cash 67 CDO and other bonds payable 105,423 |
Schedule of receivables and other assets | The following table summarizes the Company's receivables and other assets: March 31, 2017 December 31, 2016 Accounts receivable, net $ 7,657 $ 8,047 Prepaid expenses 4,243 3,654 Interest receivable 932 1,697 Deposits 4,833 4,105 Inventory 5,010 4,496 Derivative assets 364 856 Residential mortgage loans, held-for-sale, net 228 231 Miscellaneous assets, net (A) 14,898 14,931 $ 38,165 $ 38,017 (A) Includes one owned property in Annandale, New Jersey in the Traditional Golf segment classified as held-for-sale as of December 31, 2016. We expect to close on this property during 2017 . |
Schedule of accounts payable, accrued expenses and other liabilities | The following table summarizes the Company's accounts payable, accrued expenses and other liabilities: March 31, 2017 December 31, 2016 Accounts payable and accrued expenses $ 24,849 $ 26,249 Deferred revenue 30,255 36,107 Security deposits payable 9,392 6,073 Unfavorable leasehold interests 4,012 4,225 Derivative liabilities 2,010 — Accrued rent 2,031 2,613 Due to affiliates 892 892 Miscellaneous liabilities 14,279 12,278 $ 87,720 $ 88,437 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting | Summary financial data on the Company’s segments is given below, together with reconciliation to the same data for the Company as a whole: Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total Three Months Ended March 31, 2017 Revenues Golf course operations $ 46,296 $ — $ — $ — $ 46,296 Sales of food and beverages 12,845 — — — 12,845 Total revenues 59,141 — — — 59,141 Operating costs Operating expenses (B) 54,431 — — — 54,431 Cost of sales - food and beverages 4,032 — — — 4,032 General and administrative expense 700 65 1 1,145 1,911 General and administrative expense - acquisition and transaction expenses (C) 276 1,261 — 117 1,654 Management fee to affiliate — — — 2,677 2,677 Depreciation and amortization 5,793 — — — 5,793 Realized/unrealized loss on investments 120 — 3,269 — 3,389 Total operating costs 65,352 1,326 3,270 3,939 73,887 Operating loss (6,211 ) (1,326 ) (3,270 ) (3,939 ) (14,746 ) Other income (expenses) Interest and investment income 39 — 7,802 47 7,888 Interest expense (3,817 ) — (1,206 ) (411 ) (5,434 ) Other (loss) income, net (624 ) — 501 — (123 ) Total other income (expenses) (4,402 ) — 7,097 (364 ) 2,331 Income tax expense (D) — — — 539 539 Net (loss) income (10,613 ) (1,326 ) 3,827 (4,842 ) (12,954 ) Preferred dividends — — — (1,395 ) (1,395 ) (Loss) income applicable to common stockholders $ (10,613 ) $ (1,326 ) $ 3,827 $ (6,237 ) $ (14,349 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total March 31, 2017 Investments $ 278,686 $ 1,132 $ 407,589 $ — $ 687,407 Cash and restricted cash 13,681 1,254 1,545 117,703 134,183 Other assets 34,427 2,136 1,444 158 38,165 Total assets 326,794 4,522 410,578 117,861 859,755 Debt, net 114,851 — 310,630 51,214 476,695 Other liabilities 167,342 1,578 5,967 4,333 179,220 Total liabilities 282,193 1,578 316,597 55,547 655,915 Preferred stock — — — 61,583 61,583 Noncontrolling interest — — — — — Equity attributable to common stockholders $ 44,601 $ 2,944 $ 93,981 $ 731 $ 142,257 Additions to investments in real estate during the three months ended March 31, 2017 $ 3,496 $ 138 $ — $ — $ 3,634 Traditional Golf Entertainment Golf Debt Investments (A) Corporate Total Three Months Ended March 31, 2016 Revenues Golf course operations $ 48,597 $ — $ — $ — $ 48,597 Sales of food and beverages 13,561 — — — 13,561 Total revenues 62,158 — — — 62,158 Operating costs Operating expenses (B) 58,219 — — — 58,219 Cost of sales - food and beverages 4,597 — — — 4,597 General and administrative expense 839 2 37 1,883 2,761 General and administrative expense - acquisition and transaction expenses (C) 126 12 — 38 176 Management fee to affiliate — — — 2,675 2,675 Depreciation and amortization 6,031 — — — 6,031 Impairment — — 2,308 — 2,308 Realized/unrealized loss on investments 1 — 2,006 — 2,007 Total operating costs 69,813 14 4,351 4,596 78,774 Operating loss (7,655 ) (14 ) (4,351 ) (4,596 ) (16,616 ) Other income (expenses) Interest and investment income 42 — 20,991 6 21,039 Interest expense (2,665 ) — (9,924 ) (945 ) (13,534 ) Gain on deconsolidation — — 82,130 — 82,130 Other (loss) income, net (283 ) — 603 — 320 Total other income (expenses) (2,906 ) — 93,800 (939 ) 89,955 Income tax expense 44 — — — 44 Net (loss) income (10,605 ) (14 ) 89,449 (5,535 ) 73,295 Preferred dividends — — — (1,395 ) (1,395 ) Net loss attributable to noncontrolling interest 124 — — — 124 (Loss) income applicable to common stockholders $ (10,481 ) $ (14 ) $ 89,449 $ (6,930 ) $ 72,024 (A) The following table summarizes the investments and debt in the Debt Investments segment: March 31, 2017 Investments Debt Outstanding Carrying Outstanding Carrying Unlevered real estate securities $ 4,000 $ 2,032 $ — $ — Levered real estate securities 319,380 326,878 310,630 310,630 Real estate related and other loans (E) 78,125 59,043 — — Other investments N/A 19,636 — — $ 401,505 $ 407,589 $ 310,630 $ 310,630 (B) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.8 million and $1.0 million for the three months ended March 31, 2017 and 2016 , respectively. (C) Acquisition and transaction expense includes costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expense also includes personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues. (D) Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment. (E) Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million . |
Schedule of other debt segment investments and debt | The following table summarizes the investments and debt in the Debt Investments segment: March 31, 2017 Investments Debt Outstanding Carrying Outstanding Carrying Unlevered real estate securities $ 4,000 $ 2,032 $ — $ — Levered real estate securities 319,380 326,878 310,630 310,630 Real estate related and other loans (E) 78,125 59,043 — — Other investments N/A 19,636 — — $ 401,505 $ 407,589 $ 310,630 $ 310,630 (B) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.8 million and $1.0 million for the three months ended March 31, 2017 and 2016 , respectively. (C) Acquisition and transaction expense includes costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expense also includes personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues. (D) Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment. (E) Excludes two mezzanine loans with zero carrying value, which had an aggregate face amount of $17.8 million and two corporate loans with zero carrying value, which had an aggregate face amount of $45.7 million . |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of real estate securities holdings | The following is a summary of the Company’s real estate securities at March 31, 2017 , all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment (A) After Impairment Gains Losses Carrying Number of Securities Rating (C) Coupon Yield Life Principal Subordination (E) ABS - Non-Agency RMBS $ 4,000 $ 2,338 $ (1,521 ) $ 817 $ 1,215 $ — $ 2,032 1 C 1.37 % 25.44 % 9.2 28.8 % Total Securities, Available-for-Sale (F) $ 4,000 $ 2,338 $ (1,521 ) $ 817 $ 1,215 $ — $ 2,032 1 FNMA/FHLMC (A) 319,380 337,972 (11,094 ) 326,878 — — 326,878 1 AAA 3.50 % 3.13 % 7.7 N/A Total Securities, Pledged as Collateral (F) $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 (A) As of March 31, 2017 , the Company reclassified gross unrealized losses of $11.1 million from other comprehensive income into earnings on FNMA/FHLMC securities that the Company intends to sell and recorded in realized/unrealized (gain) loss on investments in the Consolidated Statements of Operations. (B) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (C) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. The Company uses an implied AAA rating for the Fannie Mae/Freddie Mac ( “ FNMA/FHLMC ”) securities. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (D) The weighted average life is based on the timing of expected cash flows on the assets. (E) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. (F) The total outstanding face amount was $319.4 million for fixed rate securities and $4.0 million for floating rate securities. |
Schedule of real estate securities holdings in an unrealized loss position | The following table summarizes the Company's securities in an unrealized loss position as of March 31, 2017 . Amortized Cost Basis Gross Unrealized Weighted Average Securities in an Unrealized Loss Position Outstanding Face Amount Before Impairment Other-than-Temporary Impairment (A) After Impairment Gains Losses Carrying Value Number of Securities Rating Coupon Yield Life (Years) Less Than Twelve $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 AAA 3.50 % 3.13 % 7.7 Twelve or More — — — — — — — — — — % — % — Total $ 319,380 $ 337,972 $ (11,094 ) $ 326,878 $ — $ — $ 326,878 1 AAA 3.50 % 3.13 % 7.7 (A) As of March 31, 2017 , the Company reclassified gross unrealized losses of $11.1 million from other comprehensive income into earnings on FNMA/FHLMC securities that the Company intends to sell and recorded in realized/unrealized (gain) loss on investments in the Consolidated Statements of Operations. |
Schedule of geographic distribution of collateral securing Drive Shack's ABS | The table below summarizes the geographic distribution of the collateral securing the asset-backed securities (“ABS”) at March 31, 2017 : ABS - Non-Agency RMBS Geographic Location Outstanding Face Amount Percentage Western U.S. $ 1,295 32.4 % Northeastern U.S. 605 15.1 % Southeastern U.S. 1,065 26.6 % Midwestern U.S. 430 10.8 % Southwestern U.S. 605 15.1 % $ 4,000 100.0 % |
REAL ESTATE RELATED AND OTHER28
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule of real estate and other related loans, residential mortgage loans and subprime mortgage loans | The following is a summary of real estate related and other loans and residential mortgage loans at March 31, 2017 . The loans contain various terms, including fixed and floating rates, self-amortizing and interest only. They are generally subject to prepayment. Loan Type Outstanding Carrying Loan Weighted Weighted Average Coupon Weighted Average Life Floating Rate Loans as % of Face Amount Delinquent Face Amount (C) Mezzanine Loans $ 17,767 $ — 2 0.00 % 8.39 % 0.0 100.0 % $ 17,767 Corporate Loans 123,812 59,043 4 22.49 % 15.40 % 0.5 — % 59,384 Total Real Estate Related and other Loans Held-for-Sale, Net $ 141,579 $ 59,043 6 22.49 % 14.52 % 0.5 12.5 % $ 77,151 Residential Mortgage Loans Held-for-Sale, Net (D) $ 769 $ 228 3 3.11 % 3.42 % 0.4 100.0 % $ 628 (A) Carrying value includes negligible interest receivable for the residential housing loans. (B) The weighted average maturity is based on the timing of expected cash flows on the assets. (C) Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of March 31, 2017 , $77.2 million face amount of real estate related and other loans was on non-accrual status. (D) Loans acquired at a discount for credit quality. Residential mortgage loans held-for-sale, net is recorded in receivables and other assets on the Consolidated Balance Sheets. |
Schedule of real estate related and other loans by maturity | The following is a summary of real estate related and other loans by maturities at March 31, 2017 : Year of Maturity Outstanding Face Amount Carrying Value Number of Loans Delinquent (A) $ 77,151 $ 147 5 Period from April 1, 2017 to December 31, 2017 — — — 2018 — — — 2019 64,428 58,896 1 2020 — — — 2021 — — — 2022 — — — Thereafter — — — Total $ 141,579 $ 59,043 6 (A) Includes loans that are non-performing, in foreclosure, or under bankruptcy |
Schedule of activity in carrying value of real estate related and other loans and residential mortgage loans | Activities relating to the carrying value of the Company’s real estate related and other loans and residential mortgage loans are as follows: Held-for-Sale Real Estate Related and Other Loans Residential Mortgage Loans (A) Balance at December 31, 2016 $ 55,612 $ 231 Purchases / additional fundings — — Interest accrued to principal balance 3,431 — Principal pay downs — (3 ) Balance at March 31, 2017 $ 59,043 $ 228 (A) Recorded in receivables and other assets on the Consolidated Balance Sheets. |
Schedule of geographic distribution of real estate related and other loans and residential mortgage loans | The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at March 31, 2017 : Real Estate Related Residential Mortgage Loans Geographic Location Outstanding Face Amount Percentage Outstanding Face Amount Percentage Northeastern U.S. $ — — % $ 523 68.0 % Southeastern U.S. — — % 246 32.0 % Foreign 63,454 100.0 % — — % $ 63,454 100.0 % $ 769 100.0 % Other (A) 78,125 $ 141,579 (A) Includes corporate loans which are not directly secured by real estate assets. |
INVESTMENTS IN REAL ESTATE, N29
INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of investments in real estate related to Traditional Golf business | The following table summarizes the Company’s investments in real estate related to its Traditional and Entertainment Golf businesses: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 84,319 $ — $ 84,319 $ 84,319 $ — $ 84,319 Buildings and improvements 145,243 (42,737 ) 102,506 144,690 (39,402 ) 105,288 Furniture, fixtures and equipment 29,900 (21,250 ) 8,650 29,132 (20,516 ) 8,616 Capital leases - equipment 20,945 (5,645 ) 15,300 20,844 (4,818 ) 16,026 Construction in progress 5,677 — 5,677 3,362 — 3,362 Total Investments in Real Estate $ 286,084 $ (69,632 ) $ 216,452 $ 282,347 $ (64,736 ) $ 217,611 |
INTANGIBLES, NET OF ACCUMULAT30
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes the Company’s intangible assets related to the Traditional and Entertainment Golf businesses: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (76 ) $ 624 $ 700 $ (70 ) $ 630 Leasehold intangibles (A) 48,107 (13,591 ) 34,516 48,107 (12,550 ) 35,557 Management contracts 35,207 (11,242 ) 23,965 35,207 (10,434 ) 24,773 Internally-developed software 800 (520 ) 280 800 (480 ) 320 Membership base 5,236 (2,431 ) 2,805 5,236 (2,244 ) 2,992 Nonamortizable liquor licenses 1,176 — 1,176 840 — 840 Total Intangibles $ 91,226 $ (27,860 ) $ 63,366 $ 90,890 $ (25,778 ) $ 65,112 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations and related hedges | The following table presents certain information regarding the Company’s debt obligations at March 31, 2017 : Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life(Years) Face Amount of Repurchase Agreements (C) FNMA/FHLMC Securities Mar 2017 $ 310,630 $ 310,630 Apr 2017 1.02% 1.02 % 0.1 $ — 310,630 310,630 1.02 % 0.1 — Credit Facilities and Capital Leases Traditional Golf Term Loan (D)(E) June 2016 102,000 98,979 Jul 2019 LIBOR+4.70% 7.92 % 2.3 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 26.7 200 Capital Leases (Equipment) May 2014 - Mar 2017 15,672 15,672 Sep 2018 - Sep 2022 3.00% to 16.16% 6.56 % 3.9 — 117,872 114,851 7.72 % 2.5 102,200 Corporate Junior subordinated notes payable (F) Mar 2006 51,004 51,214 Apr 2035 LIBOR+2.25% 3.26 % 18.1 51,004 51,004 51,214 3.26 % 18.1 51,004 Total debt obligations $ 479,506 $ 476,695 2.88 % 2.6 $ 153,204 (A) Weighted average, including floating and fixed rate classes. (B) Including the effect of deferred financing costs. (C) The repurchase agreement had $0.2 million of accrued interest payable at March 31, 2017 . The counterparty on the repurchase agreement is Jefferies. The Company has margin exposures on the repurchase agreement related to the financing of FNMA/FHLMC securities. The underlying collateral of the repurchase agreement is fixed rate FNMA/FHLMC securities with the following value at March 31, 2017 : $319.4 million outstanding face amount, $326.9 million amortized cost basis, $326.9 million carrying value and a weighted average life of 7.7 years . To the extent that the value of the collateral underlying the repurchase agreement declines, the Company may be required to post margin, which could significantly impact its liquidity. (D) The golf term loan is collateralized by 22 golf properties. The carrying amount of the golf term loan is reported net of amortized deferred financing costs of $3.0 million as of March 31, 2017 . (E) Interest rate based on 1 month LIBOR plus 4.70% with a LIBOR floor of 1.80% . At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80% . (F) Interest rate based on 3 month LIBOR plus 2.25% . |
Schedule of future minimum lease payments under capital leases | The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of March 31, 2017 are as follows: April 1, 2017 - December 31, 2017 $ 3,521 2018 4,685 2019 4,540 2020 3,259 2021 1,684 2022 173 Thereafter — Total minimum lease payments 17,862 Less: imputed interest (2,190 ) Present value of net minimum lease payments $ 15,672 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of (gains) recorded in relation to derivatives | The following table summarizes (gains) losses recorded in relation to derivatives: Three Months Ended March 31, Income Statement Location 2017 2016 Cash flow hedges Deferred hedge gain reclassified from Accumulated Other Comprehensive Income (“AOCI”) into earnings Interest expense — (20 ) Non-hedge derivatives Unrealized loss on interest rate derivatives Realized/unrealized (gain) loss on investments $ 120 $ — Unrealized loss recognized related to TBAs Realized/unrealized (gain) loss on investments 2,382 341 Realized (gain) loss on settlement of TBAs Realized/unrealized (gain) loss on investments (2,474 ) 7,536 |
FAIR VALUE OF FINANCIAL INSTR33
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and estimated fair value of assets and liabilities | The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2017 : Carrying Estimated Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,032 $ 2,032 Pricing models Real estate securities, available-for-sale - pledged as collateral 326,878 326,878 Broker/counterparty quotations, pricing services Real estate related and other loans, held-for-sale, net 59,043 64,575 Pricing models Residential mortgage loans, held-for-sale, net (B) 228 259 Broker/counterparty quotations, pricing models Cash and cash equivalents 126,970 126,970 Restricted cash 7,213 7,213 Non-hedge derivative assets (C) 364 364 Counterparty quotations, pricing services Liabilities Repurchase agreements 310,630 310,630 Counterparty quotations, market comparables Credit facilities and obligations under capital leases 114,851 117,872 Pricing models Junior subordinated notes payable 51,214 26,714 Pricing models Non-hedge derivative liabilities (C) 2,010 2,010 Counterparty quotations, pricing services (A) Methods are listed in order of priority. In the case of real estate securities and real estate related and other loans, broker quotations are obtained if available and practicable, otherwise counterparty quotations or pricing service valuations are obtained or, finally, internal pricing models are used. Internal pricing models are only used for (i) securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) loans or debt obligations which are private and untraded. (B) Residential mortgage loans held-for-sale, net is recorded in receivables and other assets on the Consolidated Balance Sheets. (C) Represents derivative assets and liabilities, including an interest rate cap and TBA forward contracts (Note 9). |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes financial assets and liabilities measured at fair value on a recurring basis at March 31, 2017 : Fair Value Carrying Value Level 2 Level 3 Total Market Quotations (Observable) Market Quotations (Unobservable) Internal Pricing Models Assets Real estate securities, available-for-sale: ABS - Non-Agency RMBS $ 2,032 $ — $ — $ 2,032 $ 2,032 Real estate securities, available-for-sale total $ 2,032 $ — $ — $ 2,032 $ 2,032 Real estate securities, available-for-sale - pledged as collateral: FNMA/FHLMC $ 326,878 $ 326,878 $ — $ — $ 326,878 Real estate securities, available-for-sale - pledged as collateral total $ 326,878 $ 326,878 $ — $ — $ 326,878 Derivative assets: Interest rate cap, not treated as hedge $ 364 $ 364 $ — $ — $ 364 Derivative assets total $ 364 $ 364 $ — $ — $ 364 Liabilities Derivative liabilities: TBAs, not treated as hedges $ 2,010 $ 2,010 $ — $ — $ 2,010 Derivative liabilities total $ 2,010 $ 2,010 $ — $ — $ 2,010 |
Schedule of quantitative information regarding significant unobservable inputs | The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 . Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 817 $ 2,032 12.0 % 4.6 % 4.2 % 64.9 % Total $ 817 $ 2,032 |
Schedule of change in fair value of Level 3 investments | The Company’s investments in instruments measured at fair value on a recurring basis using Level 3 inputs changed during the three months ended March 31, 2017 as follows: ABS - Non-Agency RMBS Balance at December 31, 2016 $ 1,950 Total gains (losses) (A) Included in other comprehensive income (loss) 47 Amortization included in interest income 47 Purchases, sales and repayments (A) Proceeds (12 ) Balance at March 31, 2017 $ 2,032 (A) None of the gains (losses) recorded in earnings during the period is attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. There were no purchases or sales during the three months ended March 31, 2017 . There were no transfers into or out of Level 3 during the three months ended March 31, 2017 . |
Schedule of fair value for real estate related and other loans | The following table summarizes certain information for real estate related and other loans as of March 31, 2017 : Significant Input Range Weighted Average Loan Type Carrying Value Fair Value Discount Rate Loss Severity Discount Rate Loss Severity Corporate Loans 59,043 64,575 0.0%-22.5% 0.0%-100.0% 22.5 % 48.0 % Total Real Estate Related and Other Loans Held-for-Sale, Net (A) $ 59,043 $ 64,575 (A) Excludes $17.8 million face amount of mezzanine loans which have a zero carrying value. |
Liabilities for which fair value is only disclosed | The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Repurchase agreements Level 2 Valuation technique is based on market comparables. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Collateral funding spreads Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of outstanding options | The following is a summary of the changes in the Company’s outstanding options for the three months ended March 31, 2017 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2016 5,126,906 $ 2.79 Expired (40,330 ) 14.44 Balance at March 31, 2017 5,086,576 $ 2.70 5.91 Exercisable at March 31, 2017 3,934,081 $ 2.77 5.81 |
Schedule of outstanding options summary | As of March 31, 2017 , the Company’s outstanding options were summarized as follows: Issued Prior to 2011 Issued in 2011 and thereafter Total Held by the Manager 71,915 3,857,748 3,929,663 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 4,085 1,152,495 1,156,580 Issued to the independent directors — 333 333 Total 76,000 5,010,576 5,086,576 Weighted average strike price $ 12.44 $ 2.55 $ 2.70 |
Schedule of amounts used in computing basic and diluted EPS | The following table shows the amounts used in computing basic and diluted EPS: Three Months Ended March 31, 2017 2016 Numerator for basic and diluted earnings per share: (Loss) Income Applicable to Common Stockholders $ (14,349 ) $ 72,024 Denominator: Denominator for basic earnings per share - weighted average shares 66,841,977 66,654,598 Effect of dilutive securities Options — 1,630,300 Denominator for diluted earnings per share - adjusted weighted average shares 66,841,977 68,284,898 Basic earnings per share: (Loss) Income Applicable to Common Stock, per share $ (0.21 ) $ 1.08 Diluted earnings per share: (Loss) Income Applicable to Common Stock, per share $ (0.21 ) $ 1.05 |
TRANSACTIONS WITH AFFILIATES 35
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
Schedule of amounts Incurred under management agreement | Amounts incurred under the Management Agreement Three Months Ended March 31, 2017 2016 Management fees $ 2,552 $ 2,550 Expense reimbursement to the Manager 125 125 Incentive compensation — — Total Management fee to affiliate $ 2,677 $ 2,675 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of provisions for income taxes | The provision for income taxes consists of the following: Three Months Ended March 31, 2017 2016 Current: Federal $ 539 $ 43 State and Local — 11 Total Current Provision $ 539 $ 54 Deferred: Federal $ — $ (9 ) State and Local — (1 ) Total Deferred Benefit $ — $ (10 ) Total Provision for Income Taxes $ 539 $ 44 |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of March 31, 2017 are presented below: March 31, 2017 December 31, 2016 Deferred tax assets: Allowance for loan losses $ 391 $ 358 Depreciation and amortization 39,039 38,598 Accrued expenses 1,764 2,885 Interest 13,234 16,503 Net operating losses 176,821 162,629 Other 2,094 2,036 Total deferred tax assets 233,343 223,009 Less valuation allowance (153,541 ) (133,192 ) Net deferred tax assets $ 79,802 $ 89,817 Deferred tax liabilities: Leaseholds 13,529 13,681 Cancellation of debt 66,178 75,632 Other 95 504 Total deferred tax liabilities $ 79,802 $ 89,817 Net deferred tax assets (A) $ — $ — (A) Recorded in receivables and other assets on the Consolidated Balance Sheets. |
IMPAIRMENT (Tables)
IMPAIRMENT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other than Temporary Impairment Losses, Investments [Abstract] | |
Summary of impairment (reversal) | The following table summarizes the amounts the Company recorded in the Consolidated Statement of Operations: Three Months Ended March 31, 2017 2016 Debt securities — 110 Valuation allowance on loans — 2,198 Total impairment $ — $ 2,308 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Mar. 31, 2017stateproperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of golf properties (in properties) | property | 78 |
Number of states in which properties owned (in states) | state | 13 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2011USD ($) | Mar. 31, 2017USD ($)derivative_instrumentcontract | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | ||||
Refundable term for initiation fees | 30 years | |||
Expected life of active golf membership | 7 years | |||
Ownership in equity investment (as percent) | 23.00% | |||
Other investments | $ 19,636,000 | $ 19,256,000 | ||
Acquisition of servicing rights | $ 2,200,000 | |||
Amortization of servicing rights | 100,000 | $ 100,000 | ||
MSR impairment | 0 | $ 0 | ||
Servicing assets | 300,000 | 400,000 | ||
VIE assets | 0 | 0 | ||
VIE liabilities | 0 | 0 | ||
Interest rate cap | ||||
Derivative [Line Items] | ||||
Interest rate derivative instruments not designated as hedging instruments at fair value, net | $ 400,000 | |||
Interest rate cap | Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Number of interest rate derivatives held (in derivatives) | derivative_instrument | 1 | |||
Other Contract | Not designated as hedging instrument | Short | ||||
Derivative [Line Items] | ||||
Derivative, number of instruments held (in instruments) | contract | 2 | |||
Notional amount | $ 319,000,000 | |||
Other Contract | Not designated as hedging instrument | Short | TBA contracts | ||||
Derivative [Line Items] | ||||
Margin deposit assets | $ 1,100,000 | $ 0 | ||
Lower Range | ||||
Derivative [Line Items] | ||||
Operating lease term | 10 years | |||
Upper Range | ||||
Derivative [Line Items] | ||||
Operating lease term | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Realized/unrealized loss on investments and other income (loss), net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Realized/unrealized (gain) loss on investments | ||
(Gain) on settlement of real estate securities | $ 0 | $ (5,917) |
Loss on settlement of real estate securities | 2,803 | 0 |
Unrealized loss on securities, intent-to-sell | 558 | 0 |
Loss on repayment/disposition of loans held-for-sale | 0 | 47 |
Realized (gain) loss on settlement of TBAs, net | (2,474) | 7,536 |
Unrealized loss on non-hedge derivative instruments | 2,502 | 341 |
Realized/unrealized loss on investments | 3,389 | 2,007 |
Other income (loss), net | ||
Loss on lease modifications and terminations | (158) | (60) |
Loss on extinguishment of debt, net | (146) | (232) |
Collateral management fee income, net | 122 | 232 |
Equity in earnings of equity method investees | 379 | 371 |
Gain (loss) on disposal of long-lived assets | 26 | (6) |
Other (loss) income | (346) | 15 |
Other (loss) income, net | $ (123) | $ 320 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassification from accumulated other comprehensive income into net (loss) income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (“AOCI”) Components | ||
Impairment | $ 0 | $ 2,308 |
Realized/unrealized (gain) loss on investments | 3,389 | 2,007 |
Gain on deconsolidation | 0 | (82,130) |
Interest expense | 5,434 | 13,534 |
Net (loss) income | 12,954 | (73,295) |
Total reclassifications | 0 | (26,565) |
Net realized (gain) loss on securities | Reclassification from AOCI into earnings | ||
Accumulated Other Comprehensive Income (“AOCI”) Components | ||
Impairment | 0 | 54 |
Realized/unrealized (gain) loss on investments | 0 | (5,917) |
Gain on deconsolidation | 0 | (20,682) |
Net (loss) income | 0 | (26,545) |
Net realized (gain) loss on derivatives designated as cash flow hedges | Reclassification from AOCI into earnings | ||
Accumulated Other Comprehensive Income (“AOCI”) Components | ||
Interest expense | 0 | (20) |
Net (loss) income | $ 0 | $ (20) |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives) (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Buildings and improvements | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings and improvements | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Capital leases - equipment | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Capital leases - equipment | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Furniture, fixtures and equipment | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, fixtures and equipment | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives for amortization) (Details) - Traditional Golf | 3 Months Ended |
Mar. 31, 2017 | |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 30 years |
Leasehold Intangibles | Lower Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Leasehold Intangibles | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 26 years |
Management contracts | Lower Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Management contracts | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 26 years |
Internally-developed software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Membership base | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Supplemental non-cash investing and financing activities relating to CDOS) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restricted Cash activity: | |
Restricted cash generated from pay downs on securities and loans | $ 2,310 |
Restricted cash used for repayments of CDO and other bonds payable | 2,748 |
Variable Interest Entity, Primary Beneficiary | CDO VI | |
CDO VI deconsolidation: | |
Real estate securities | 43,889 |
Restricted cash | 67 |
CDO and other bonds payable | $ 105,423 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of receivables and other assets) (Details) $ in Thousands | Mar. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 7,657 | $ 8,047 |
Prepaid expenses | 4,243 | 3,654 |
Interest receivable | 932 | 1,697 |
Deposits | 4,833 | 4,105 |
Inventory | 5,010 | 4,496 |
Derivative assets | 364 | 856 |
Residential mortgage loans, held-for-sale, net | 228 | 231 |
Miscellaneous assets, net | 14,898 | 14,931 |
Receivables and other assets | $ 38,165 | $ 38,017 |
Number of golf properties (in properties) | property | 78 | |
Held-for-sale | Annandale, New Jersey | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of golf properties (in properties) | property | 1 |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of accounts payable, accrued expenses and other liabilities) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Accounts payable and accrued expenses | $ 24,849,000 | $ 26,249,000 |
Deferred revenue | 30,255,000 | 36,107,000 |
Security deposits payable | 9,392,000 | 6,073,000 |
Unfavorable leasehold interests | 4,012,000 | 4,225,000 |
Derivative liabilities | 2,010,000 | 0 |
Accrued rent | 2,031,000 | 2,613,000 |
Due to affiliates | 892,000 | 892,000 |
Miscellaneous liabilities | 14,279,000 | 12,278,000 |
Total Accounts Payable, Accrued Expenses and Other Liabilities | $ 87,720,000 | $ 88,437,000 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)statesegmentpropertyloan | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments (in segments) | segment | 4 | |
Number of golf properties (in properties) | property | 78 | |
Number of states in which properties owned (in states) | state | 13 | |
Loan count (in loans) | loan | 6 | |
Face amount | $ 141,579 | |
Traditional Golf | ||
Segment Reporting Information [Line Items] | ||
Rental expense - carts and equipment | 800 | $ 1,000 |
Real Estate Related and Other Loans | ||
Segment Reporting Information [Line Items] | ||
Face amount | $ 141,579 | |
Real Estate Related and Other Loans | Held-for-sale | ||
Segment Reporting Information [Line Items] | ||
Loan count (in loans) | loan | 6 | |
Face amount | $ 141,579 | |
Real Estate Related and Other Loans | Mezzanine Loans | Held-for-sale | ||
Segment Reporting Information [Line Items] | ||
Loan count (in loans) | loan | 2 | |
Face amount | $ 17,767 | |
Real Estate Related and Other Loans | Corporate Loans | ||
Segment Reporting Information [Line Items] | ||
Loan count (in loans) | loan | 2 | |
Face amount | $ 45,700 |
SEGMENT REPORTING (Segment Repo
SEGMENT REPORTING (Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues | |||
Golf course operations | $ 46,296 | $ 48,597 | |
Sales of food and beverages | 12,845 | 13,561 | |
Total revenues | 59,141 | 62,158 | |
Operating costs | |||
Operating expenses | 54,431 | 58,219 | |
Cost of sales - food and beverages | 4,032 | 4,597 | |
General and administrative expense | 1,911 | 2,761 | |
General and administrative expense - acquisition and transaction expenses | 1,654 | 176 | |
Management fee to affiliate | 2,677 | 2,675 | |
Depreciation and amortization | 5,793 | 6,031 | |
Impairment | 0 | 2,308 | |
Realized/unrealized loss on investments | 3,389 | 2,007 | |
Total operating costs | 73,887 | 78,774 | |
Operating loss | (14,746) | (16,616) | |
Other income (expenses) | |||
Interest and investment income | 7,888 | 21,039 | |
Interest expense | (5,434) | (13,534) | |
Gain on deconsolidation | 0 | 82,130 | |
Other (loss) income, net | (123) | 320 | |
Total other income (expenses) | 2,331 | 89,955 | |
Income tax expense | 539 | 44 | |
Net (Loss) Income | (12,954) | 73,295 | |
Preferred dividends | (1,395) | (1,395) | |
Net loss attributable to noncontrolling interest | 0 | 124 | |
(Loss) Income Applicable to Common Stockholders | (14,349) | 72,024 | |
Investments | 687,407 | ||
Cash and restricted cash | 134,183 | ||
Other assets | 38,165 | ||
Total Assets | 859,755 | $ 1,171,958 | |
Debt, net | 476,695 | ||
Other liabilities | 179,220 | ||
Total Liabilities | 655,915 | 953,891 | |
Preferred stock | 61,583 | 61,583 | |
Noncontrolling interest | 0 | $ 0 | |
Equity attributable to common stockholders | 142,257 | ||
Additions to investments in real estate during the three months ended March 31, 2017 | 3,634 | ||
Traditional Golf | Operating Segments | |||
Revenues | |||
Golf course operations | 46,296 | 48,597 | |
Sales of food and beverages | 12,845 | 13,561 | |
Total revenues | 59,141 | 62,158 | |
Operating costs | |||
Operating expenses | 54,431 | 58,219 | |
Cost of sales - food and beverages | 4,032 | 4,597 | |
General and administrative expense | 700 | 839 | |
General and administrative expense - acquisition and transaction expenses | 276 | 126 | |
Management fee to affiliate | 0 | 0 | |
Depreciation and amortization | 5,793 | 6,031 | |
Impairment | 0 | ||
Realized/unrealized loss on investments | 120 | 1 | |
Total operating costs | 65,352 | 69,813 | |
Operating loss | (6,211) | (7,655) | |
Other income (expenses) | |||
Interest and investment income | 39 | 42 | |
Interest expense | (3,817) | (2,665) | |
Gain on deconsolidation | 0 | ||
Other (loss) income, net | (624) | (283) | |
Total other income (expenses) | (4,402) | (2,906) | |
Income tax expense | 0 | 44 | |
Net (Loss) Income | (10,613) | (10,605) | |
Preferred dividends | 0 | 0 | |
Net loss attributable to noncontrolling interest | 124 | ||
(Loss) Income Applicable to Common Stockholders | (10,613) | (10,481) | |
Investments | 278,686 | ||
Cash and restricted cash | 13,681 | ||
Other assets | 34,427 | ||
Total Assets | 326,794 | ||
Debt, net | 114,851 | ||
Other liabilities | 167,342 | ||
Total Liabilities | 282,193 | ||
Preferred stock | 0 | ||
Noncontrolling interest | 0 | ||
Equity attributable to common stockholders | 44,601 | ||
Additions to investments in real estate during the three months ended March 31, 2017 | 3,496 | ||
Entertainment Golf | Operating Segments | |||
Revenues | |||
Golf course operations | 0 | 0 | |
Sales of food and beverages | 0 | 0 | |
Total revenues | 0 | 0 | |
Operating costs | |||
Operating expenses | 0 | 0 | |
Cost of sales - food and beverages | 0 | 0 | |
General and administrative expense | 65 | 2 | |
General and administrative expense - acquisition and transaction expenses | 1,261 | 12 | |
Management fee to affiliate | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Impairment | 0 | ||
Realized/unrealized loss on investments | 0 | 0 | |
Total operating costs | 1,326 | 14 | |
Operating loss | (1,326) | (14) | |
Other income (expenses) | |||
Interest and investment income | 0 | 0 | |
Interest expense | 0 | 0 | |
Gain on deconsolidation | 0 | ||
Other (loss) income, net | 0 | 0 | |
Total other income (expenses) | 0 | 0 | |
Income tax expense | 0 | 0 | |
Net (Loss) Income | (1,326) | (14) | |
Preferred dividends | 0 | 0 | |
Net loss attributable to noncontrolling interest | 0 | ||
(Loss) Income Applicable to Common Stockholders | (1,326) | (14) | |
Investments | 1,132 | ||
Cash and restricted cash | 1,254 | ||
Other assets | 2,136 | ||
Total Assets | 4,522 | ||
Debt, net | 0 | ||
Other liabilities | 1,578 | ||
Total Liabilities | 1,578 | ||
Preferred stock | 0 | ||
Noncontrolling interest | 0 | ||
Equity attributable to common stockholders | 2,944 | ||
Additions to investments in real estate during the three months ended March 31, 2017 | 138 | ||
Debt Investments | |||
Other income (expenses) | |||
Investments | 407,589 | ||
Debt Investments | Operating Segments | |||
Revenues | |||
Golf course operations | 0 | 0 | |
Sales of food and beverages | 0 | 0 | |
Total revenues | 0 | 0 | |
Operating costs | |||
Operating expenses | 0 | 0 | |
Cost of sales - food and beverages | 0 | 0 | |
General and administrative expense | 1 | 37 | |
General and administrative expense - acquisition and transaction expenses | 0 | 0 | |
Management fee to affiliate | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Impairment | 2,308 | ||
Realized/unrealized loss on investments | 3,269 | 2,006 | |
Total operating costs | 3,270 | 4,351 | |
Operating loss | (3,270) | (4,351) | |
Other income (expenses) | |||
Interest and investment income | 7,802 | 20,991 | |
Interest expense | (1,206) | (9,924) | |
Gain on deconsolidation | 82,130 | ||
Other (loss) income, net | 501 | 603 | |
Total other income (expenses) | 7,097 | 93,800 | |
Income tax expense | 0 | 0 | |
Net (Loss) Income | 3,827 | 89,449 | |
Preferred dividends | 0 | 0 | |
Net loss attributable to noncontrolling interest | 0 | ||
(Loss) Income Applicable to Common Stockholders | 3,827 | 89,449 | |
Investments | 407,589 | ||
Cash and restricted cash | 1,545 | ||
Other assets | 1,444 | ||
Total Assets | 410,578 | ||
Debt, net | 310,630 | ||
Other liabilities | 5,967 | ||
Total Liabilities | 316,597 | ||
Preferred stock | 0 | ||
Noncontrolling interest | 0 | ||
Equity attributable to common stockholders | 93,981 | ||
Additions to investments in real estate during the three months ended March 31, 2017 | 0 | ||
Corporate | Operating Segments | |||
Revenues | |||
Golf course operations | 0 | 0 | |
Sales of food and beverages | 0 | 0 | |
Total revenues | 0 | 0 | |
Operating costs | |||
Operating expenses | 0 | 0 | |
Cost of sales - food and beverages | 0 | 0 | |
General and administrative expense | 1,145 | 1,883 | |
General and administrative expense - acquisition and transaction expenses | 117 | 38 | |
Management fee to affiliate | 2,677 | 2,675 | |
Depreciation and amortization | 0 | 0 | |
Impairment | 0 | ||
Realized/unrealized loss on investments | 0 | 0 | |
Total operating costs | 3,939 | 4,596 | |
Operating loss | (3,939) | (4,596) | |
Other income (expenses) | |||
Interest and investment income | 47 | 6 | |
Interest expense | (411) | (945) | |
Gain on deconsolidation | 0 | ||
Other (loss) income, net | 0 | 0 | |
Total other income (expenses) | (364) | (939) | |
Income tax expense | 539 | 0 | |
Net (Loss) Income | (4,842) | (5,535) | |
Preferred dividends | (1,395) | (1,395) | |
Net loss attributable to noncontrolling interest | 0 | ||
(Loss) Income Applicable to Common Stockholders | (6,237) | $ (6,930) | |
Investments | 0 | ||
Cash and restricted cash | 117,703 | ||
Other assets | 158 | ||
Total Assets | 117,861 | ||
Debt, net | 51,214 | ||
Other liabilities | 4,333 | ||
Total Liabilities | 55,547 | ||
Preferred stock | 61,583 | ||
Noncontrolling interest | 0 | ||
Equity attributable to common stockholders | 731 | ||
Additions to investments in real estate during the three months ended March 31, 2017 | $ 0 |
SEGMENT REPORTING (Debt Investm
SEGMENT REPORTING (Debt Investments) (Details) | Mar. 31, 2017USD ($) |
Segment Reporting Information [Line Items] | |
Investments, Carrying Value | $ 687,407,000 |
Debt Investments | |
Segment Reporting Information [Line Items] | |
Investments, Outstanding Face Amount | 401,505,000 |
Investments, Carrying Value | 407,589,000 |
Debt, Outstanding Face Amount | 310,630,000 |
Debt, Carrying Value | 310,630,000 |
Unlevered real estate securities | |
Segment Reporting Information [Line Items] | |
Investments, Outstanding Face Amount | 4,000,000 |
Investments, Carrying Value | 2,032,000 |
Unlevered real estate securities | Debt Investments | |
Segment Reporting Information [Line Items] | |
Debt, Outstanding Face Amount | 0 |
Debt, Carrying Value | 0 |
Levered real estate securities | |
Segment Reporting Information [Line Items] | |
Investments, Outstanding Face Amount | 319,380,000 |
Investments, Carrying Value | 326,878,000 |
Levered real estate securities | Debt Investments | |
Segment Reporting Information [Line Items] | |
Debt, Outstanding Face Amount | 310,630,000 |
Debt, Carrying Value | 310,630,000 |
Real estate related and other loans | |
Segment Reporting Information [Line Items] | |
Investments, Outstanding Face Amount | 78,125,000 |
Investments, Carrying Value | 59,043,000 |
Real estate related and other loans | Debt Investments | |
Segment Reporting Information [Line Items] | |
Debt, Outstanding Face Amount | 0 |
Debt, Carrying Value | 0 |
Other investments | |
Segment Reporting Information [Line Items] | |
Investments, Carrying Value | 19,636,000 |
Other investments | Debt Investments | |
Segment Reporting Information [Line Items] | |
Debt, Outstanding Face Amount | 0 |
Debt, Carrying Value | $ 0 |
REAL ESTATE SECURITIES (Real Es
REAL ESTATE SECURITIES (Real Estate Securities Holdings) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)security | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
After Impairment - Amortized Cost Basis | $ 817 | ||
Carrying Value | 2,032 | $ 1,950 | |
Realized/unrealized loss on investments | 3,389 | $ 2,007 | |
Total outstanding face amount of fixed rate securities | 319,400 | ||
Total outstanding face amount of floating rate securities | 4,000 | ||
Total Securities, Pledged as Collateral | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | 319,380 | ||
Before Impairment - Amortized Cost Basis | 337,972 | ||
Other-Than-Temporary Impairment - Amortized Cost Basis | (11,094) | ||
After Impairment - Amortized Cost Basis | 326,878 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Carrying Value | $ 326,878 | ||
Number of securities (in securities) | security | 1 | ||
Total Securities, Available-for-Sale (F) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 4,000 | ||
Before Impairment - Amortized Cost Basis | 2,338 | ||
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | ||
After Impairment - Amortized Cost Basis | 817 | ||
Gross Unrealized Gains | 1,215 | ||
Gross Unrealized Losses | 0 | ||
Carrying Value | $ 2,032 | ||
Number of securities (in securities) | security | 1 | ||
ABS - Non-Agency RMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | $ 4,000 | ||
Before Impairment - Amortized Cost Basis | 2,338 | ||
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | ||
After Impairment - Amortized Cost Basis | 817 | ||
Gross Unrealized Gains | 1,215 | ||
Gross Unrealized Losses | 0 | ||
Carrying Value | $ 2,032 | ||
Number of securities (in securities) | security | 1 | ||
Weighted Average Rating | C | ||
Weighted Average Coupon (as percent) | 1.37% | ||
Weighted Average Yield (as percent) | 25.44% | ||
Weighted Average Life | 9 years 2 months 1 day | ||
Weighted Average Principal Subordination (as percent) | 28.80% | ||
ABS - Non-Agency RMBS | Total Securities, Available-for-Sale (F) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
After Impairment - Amortized Cost Basis | $ 817 | ||
Carrying Value | 2,032 | ||
FNMA/FHLMC | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Outstanding Face Amount | 319,380 | ||
Before Impairment - Amortized Cost Basis | 337,972 | ||
Other-Than-Temporary Impairment - Amortized Cost Basis | (11,094) | ||
After Impairment - Amortized Cost Basis | 326,878 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Carrying Value | $ 326,878 | ||
Number of securities (in securities) | security | 1 | ||
Weighted Average Rating | AAA | ||
Weighted Average Coupon (as percent) | 3.50% | ||
Weighted Average Yield (as percent) | 3.13% | ||
Weighted Average Life | 7 years 8 months 1 day | ||
FNMA/FHLMC | Reclassification from AOCI into earnings | Unrealized loss on real estate securities, intent-to-sell, reclassified from AOCI into income | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Realized/unrealized loss on investments | $ 11,100 |
REAL ESTATE SECURITIES (Narrati
REAL ESTATE SECURITIES (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | |
Investment [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 326,878,000 | $ 326,878,000 | |
Other-than-temporary impairment on securities and other investments | 0 | $ 2,308,000 | |
Proceeds from transaction | 286,639,000 | $ 361,341,000 | |
Real Estate Securities | |||
Investment [Line Items] | |||
Other-than-temporary impairment on securities and other investments | 600,000 | ||
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss) | 0 | ||
RE Securities Intended to Sell | |||
Investment [Line Items] | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 326,900,000 | $ 326,900,000 | |
FNMA/FHLMC | |||
Investment [Line Items] | |||
Face amount of securities sold | $ 289,700,000 | ||
Average price percentage - sold (as percent) | 98.80% | ||
Proceeds from transaction | $ 286,100,000 | ||
Recognized loss on sale of securities | 2,800,000 | ||
Repayments of repurchase agreements | $ 277,800,000 |
REAL ESTATE SECURITIES (Securit
REAL ESTATE SECURITIES (Securities in Unrealized Loss Position) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)security | Mar. 31, 2016USD ($) | |
Investment [Line Items] | ||
After Impairment - Amortized Cost Basis | $ 817 | |
Gross unrealized losses, less than twelve months | 326,878 | |
Gross unrealized losses, twelve months or more | 0 | |
Gross unrealized losses | $ 326,878 | |
Number of securities, less than twelve months (in securities) | security | 1 | |
Number of securities, twelve months or more (in securities) | security | 0 | |
Number of securities (in securities) | security | 1 | |
Realized/unrealized loss on investments | $ 3,389 | $ 2,007 |
FNMA/FHLMC | ||
Investment [Line Items] | ||
Outstanding Face Amount | 319,380 | |
Amortized Cost Basis Other -Than-Temporary Impairment | (11,094) | |
After Impairment - Amortized Cost Basis | 326,878 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | $ 0 | |
Weighted Average Rating | AAA | |
Weighted Average Coupon (as percent) | 3.50% | |
Weighted Average Yield (as percent) | 3.13% | |
Weighted Average Life (Years) | 7 years 8 months 1 day | |
FNMA/FHLMC | Reclassification from AOCI into earnings | Unrealized loss on real estate securities, intent-to-sell, reclassified from AOCI into income | ||
Investment [Line Items] | ||
Realized/unrealized loss on investments | $ 11,100 | |
Securities in an Unrealized Loss Position | ||
Investment [Line Items] | ||
Outstanding Face Amount | 319,380 | |
Amortized Cost Basis - Before Impairment | 337,972 | |
Amortized Cost Basis Other -Than-Temporary Impairment | (11,094) | |
After Impairment - Amortized Cost Basis | 326,878 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | $ 0 | |
Weighted Average Rating | AAA | |
Weighted Average Coupon (as percent) | 3.50% | |
Weighted Average Yield (as percent) | 3.13% | |
Weighted Average Life (Years) | 7 years 8 months 1 day | |
Less Than Twelve Months | ||
Investment [Line Items] | ||
Outstanding Face Amount | $ 319,380 | |
Amortized Cost Basis - Before Impairment | 337,972 | |
Amortized Cost Basis Other -Than-Temporary Impairment | (11,094) | |
After Impairment - Amortized Cost Basis | 326,878 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | $ 0 | |
Weighted Average Rating | AAA | |
Weighted Average Coupon (as percent) | 3.50% | |
Weighted Average Yield (as percent) | 3.13% | |
Weighted Average Life (Years) | 7 years 8 months 1 day | |
Twelve or More Months | ||
Investment [Line Items] | ||
Outstanding Face Amount | $ 0 | |
Amortized Cost Basis - Before Impairment | 0 | |
Amortized Cost Basis Other -Than-Temporary Impairment | 0 | |
After Impairment - Amortized Cost Basis | 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | $ 0 | |
Weighted Average Coupon (as percent) | 0.00% | |
Weighted Average Yield (as percent) | 0.00% |
REAL ESTATE SECURITIES (Geograp
REAL ESTATE SECURITIES (Geographic Distribution of Collateral Securing Drive Shack's ABS) (Details) - ABS - Non-Agency RMBS $ in Thousands | Mar. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 4,000 |
Percentage | 100.00% |
Western U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 1,295 |
Percentage | 32.40% |
Northeastern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 605 |
Percentage | 15.10% |
Southeastern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 1,065 |
Percentage | 26.60% |
Midwestern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 430 |
Percentage | 10.80% |
Southwestern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 605 |
Percentage | 15.10% |
REAL ESTATE RELATED AND OTHER54
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Schedule of Loans) (Details) | 3 Months Ended | |
Mar. 31, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | $ 141,579,000 | |
Carrying Value | $ 59,043,000 | |
Loan Count (in loans) | loan | 6 | |
Delinquent Face Amount | $ 77,151,000 | |
Real Estate Related and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 141,579,000 | |
Carrying Value | 59,043,000 | $ 55,612,000 |
Real Estate Related and Other Loans | Held-for-sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 141,579,000 | |
Carrying Value | $ 59,043,000 | |
Loan Count (in loans) | loan | 6 | |
Weighted Average Yield (as percent) | 22.49% | |
Weighted Average Coupon (as percent) | 14.52% | |
Weighted Average Life | 6 months 1 day | |
Floating Rate Loans as % of Face Amount (as percent) | 12.50% | |
Delinquent Face Amount | $ 77,151,000 | |
Real Estate Related and Other Loans | Held-for-sale | Mezzanine Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 17,767,000 | |
Carrying Value | $ 0 | |
Loan Count (in loans) | loan | 2 | |
Weighted Average Yield (as percent) | 0.00% | |
Weighted Average Coupon (as percent) | 8.39% | |
Weighted Average Life | 6 days | |
Floating Rate Loans as % of Face Amount (as percent) | 100.00% | |
Delinquent Face Amount | $ 17,767,000 | |
Real Estate Related and Other Loans | Held-for-sale | Corporate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 123,812,000 | |
Carrying Value | $ 59,043,000 | |
Loan Count (in loans) | loan | 4 | |
Weighted Average Yield (as percent) | 22.49% | |
Weighted Average Coupon (as percent) | 15.40% | |
Weighted Average Life | 6 months 1 day | |
Floating Rate Loans as % of Face Amount (as percent) | 0.00% | |
Delinquent Face Amount | $ 59,384,000 | |
Residential | Held-for-sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 769,000 | |
Carrying Value | $ 228,000 | |
Loan Count (in loans) | loan | 3 | |
Weighted Average Yield (as percent) | 3.11% | |
Weighted Average Coupon (as percent) | 3.42% | |
Weighted Average Life | 5 months 1 day | |
Floating Rate Loans as % of Face Amount (as percent) | 100.00% | |
Delinquent Face Amount | $ 628,000 | |
Face amount of real estate related loans on non-accrual status | $ 77,200,000 |
REAL ESTATE RELATED AND OTHER55
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Loans By Maturity) (Details) $ in Thousands | Mar. 31, 2017USD ($)loan |
Outstanding Face Amount | |
Delinquent | $ 77,151 |
Period from April 1, 2017 to December 31, 2017 | 0 |
2,018 | 0 |
2,019 | 64,428 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total | 141,579 |
Carrying Value | |
Delinquent | 147 |
Period from April 1, 2017 to December 31, 2017 | 0 |
2,018 | 0 |
2,019 | 58,896 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 0 |
Total | $ 59,043 |
Number of Loans | |
Delinquent (in loans) | loan | 5 |
Period from April 1, 2017 to December 31, 2017 (in loans) | loan | 0 |
2018 (in loans) | loan | 0 |
2019 (in loans) | loan | 1 |
2020 (in loans) | loan | 0 |
2021 (in loans) | loan | 0 |
2022 (in loans) | loan | 0 |
Thereafter (in loans) | loan | 0 |
Total (in loans) | loan | 6 |
REAL ESTATE RELATED AND OTHER56
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Activity in Carrying Value) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Held-for-Sale | |
Balance at March 31, 2017 | $ 59,043 |
Real Estate Related and Other Loans | |
Held-for-Sale | |
Balance at December 31, 2016 | 55,612 |
Purchases / additional fundings | 0 |
Interest accrued to principal balance | 3,431 |
Principal pay downs | 0 |
Balance at March 31, 2017 | 59,043 |
Residential | Residential Mortgage Loans | |
Held-for-Sale | |
Balance at December 31, 2016 | 231 |
Purchases / additional fundings | 0 |
Interest accrued to principal balance | 0 |
Principal pay downs | (3) |
Balance at March 31, 2017 | $ 228 |
REAL ESTATE RELATED AND OTHER57
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Real Estate Related and Other Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Change in the loss allowance | $ 0 |
REAL ESTATE RELATED AND OTHER58
REAL ESTATE RELATED AND OTHER LOANS, RESIDENTIAL MORTGAGE LOANS AND SUBPRIME MORTGAGE LOANS (Geographic Distribution) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 141,579 |
Real Estate Related and Other Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 141,579 |
Percentage of loans (as percent) | 100.00% |
Real Estate Related and Other Loans | Northeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of loans (as percent) | 0.00% |
Real Estate Related and Other Loans | Southeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of loans (as percent) | 0.00% |
Real Estate Related and Other Loans | Foreign | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of loans (as percent) | 100.00% |
Real Estate Related and Other Loans | Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 63,454 |
Real Estate Related and Other Loans | Real Estate | Northeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | 0 |
Real Estate Related and Other Loans | Real Estate | Southeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | 0 |
Real Estate Related and Other Loans | Real Estate | Foreign | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | 63,454 |
Real Estate Related and Other Loans | Other | Other | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | 78,125 |
Residential | Residential Mortgage Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 769 |
Percentage of loans (as percent) | 100.00% |
Residential | Residential Mortgage Loans | Northeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 523 |
Percentage of loans (as percent) | 68.00% |
Residential | Residential Mortgage Loans | Southeastern U.S. | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 246 |
Percentage of loans (as percent) | 32.00% |
Residential | Residential Mortgage Loans | Foreign | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 0 |
Percentage of loans (as percent) | 0.00% |
INVESTMENTS IN REAL ESTATE, N59
INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION - Investments in Other Real Estate (Details) - Golf Investments - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment [Line Items] | ||
Gross Carrying Amount | $ 286,084 | $ 282,347 |
Accumulated Depreciation | (69,632) | (64,736) |
Net Carrying Value | 216,452 | 217,611 |
Land | ||
Investment [Line Items] | ||
Gross Carrying Amount | 84,319 | 84,319 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | 84,319 | 84,319 |
Buildings and improvements | ||
Investment [Line Items] | ||
Gross Carrying Amount | 145,243 | 144,690 |
Accumulated Depreciation | (42,737) | (39,402) |
Net Carrying Value | 102,506 | 105,288 |
Furniture, fixtures and equipment | ||
Investment [Line Items] | ||
Gross Carrying Amount | 29,900 | 29,132 |
Accumulated Depreciation | (21,250) | (20,516) |
Net Carrying Value | 8,650 | 8,616 |
Capital leases - equipment | ||
Investment [Line Items] | ||
Gross Carrying Amount | 20,945 | 20,844 |
Accumulated Depreciation | (5,645) | (4,818) |
Net Carrying Value | 15,300 | 16,026 |
Construction in progress | ||
Investment [Line Items] | ||
Gross Carrying Amount | 5,677 | 3,362 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | $ 5,677 | $ 3,362 |
INTANGIBLES, NET OF ACCUMULAT60
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized intangible assets: | ||
Total Intangibles, Net Carrying Value | $ 63,366 | $ 65,112 |
Golf Investments | ||
Amortized intangible assets: | ||
Accumulated Amortization | (27,860) | (25,778) |
Nonamortizable liquor licenses | 1,176 | 840 |
Total Intangibles, Gross Carrying Amount | 91,226 | 90,890 |
Total Intangibles, Net Carrying Value | 63,366 | 65,112 |
Golf Investments | Trade name | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 700 | 700 |
Accumulated Amortization | (76) | (70) |
Net Carrying Value | 624 | 630 |
Golf Investments | Leasehold Intangibles | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 48,107 | 48,107 |
Accumulated Amortization | (13,591) | (12,550) |
Net Carrying Value | 34,516 | 35,557 |
Golf Investments | Management contracts | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 35,207 | 35,207 |
Accumulated Amortization | (11,242) | (10,434) |
Net Carrying Value | 23,965 | 24,773 |
Golf Investments | Internally-developed software | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 800 | 800 |
Accumulated Amortization | (520) | (480) |
Net Carrying Value | 280 | 320 |
Golf Investments | Membership base | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 5,236 | 5,236 |
Accumulated Amortization | (2,431) | (2,244) |
Net Carrying Value | $ 2,805 | $ 2,992 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) | 3 Months Ended |
Mar. 31, 2017USD ($)property | |
Debt Instrument [Line Items] | |
Carrying Value | $ 476,695,000 |
Number of golf properties (in properties) | property | 78 |
Repurchase Agreements | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 310,630,000 |
Carrying Value | $ 310,630,000 |
Weighted Average Funding (as percent) | 1.02% |
Weighted Average Life | 1 month 1 day |
Face Amount of Floating Rate Debt | $ 0 |
Accrued interest payable | 200,000 |
FNMA/FHLMC Securities | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | 310,630,000 |
Carrying Value | $ 310,630,000 |
Weighted Average Coupon (as percent) | 1.02% |
Weighted Average Funding (as percent) | 1.02% |
Weighted Average Life | 1 month 1 day |
Face Amount of Floating Rate Debt | $ 0 |
FNMA/FHLMC Securities | Jefferies | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | 319,400,000 |
Amortized cost basis | 326,900,000 |
Carrying value | $ 326,900,000 |
Weighted average life | 7 years 8 months 1 day |
Credit Facilities and Capital Leases | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 117,872,000 |
Carrying Value | $ 114,851,000 |
Weighted Average Funding (as percent) | 7.72% |
Weighted Average Life | 2 years 6 months 1 day |
Face Amount of Floating Rate Debt | $ 102,200,000 |
Golf Term Loans | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | 102,000,000 |
Carrying Value | $ 98,979,000 |
Weighted Average Funding (as percent) | 7.92% |
Weighted Average Life | 2 years 3 months 1 day |
Face Amount of Floating Rate Debt | $ 102,000,000 |
Number of golf properties (in properties) | property | 22 |
Deferred financing costs | $ 3,000,000 |
Golf Term Loans | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Variable interest rate spread (as percent) | 4.70% |
Variable rate (as percent) | 1.80% |
Golf Term Loans | London Interbank Offered Rate (LIBOR) | Interest rate cap | |
Debt Instrument [Line Items] | |
Variable rate (as percent) | 1.80% |
Vineyard II | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 200,000 |
Carrying Value | $ 200,000 |
Weighted Average Coupon (as percent) | 2.20% |
Weighted Average Funding (as percent) | 2.20% |
Weighted Average Life | 26 years 8 months 1 day |
Face Amount of Floating Rate Debt | $ 200,000 |
Capital Leases (Equipment) | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | 15,672,000 |
Carrying Value | $ 15,672,000 |
Weighted Average Funding (as percent) | 6.56% |
Weighted Average Life | 3 years 11 months 1 day |
Face Amount of Floating Rate Debt | $ 0 |
Capital Leases (Equipment) | Lower Range | |
Debt Instrument [Line Items] | |
Weighted Average Coupon (as percent) | 3.00% |
Capital Leases (Equipment) | Upper Range | |
Debt Instrument [Line Items] | |
Weighted Average Coupon (as percent) | 16.16% |
Corporate | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 51,004,000 |
Carrying Value | $ 51,214,000 |
Weighted Average Funding (as percent) | 3.26% |
Weighted Average Life | 18 years 1 month 1 day |
Face Amount of Floating Rate Debt | $ 51,004,000 |
Junior subordinated notes payable (F) | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | 51,004,000 |
Carrying Value | $ 51,214,000 |
Weighted Average Funding (as percent) | 3.26% |
Weighted Average Life | 18 years 1 month 1 day |
Face Amount of Floating Rate Debt | $ 51,004,000 |
Junior subordinated notes payable (F) | London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Variable interest rate spread (as percent) | 2.25% |
Total debt obligations | |
Debt Instrument [Line Items] | |
Outstanding Face Amount | $ 479,506,000 |
Carrying Value | $ 476,695,000 |
Weighted Average Funding (as percent) | 2.88% |
Weighted Average Life | 2 years 7 months 1 day |
Face Amount of Floating Rate Debt | $ 153,204,000 |
DEBT OBLIGATIONS (Narrative) (D
DEBT OBLIGATIONS (Narrative) (Details) - Capital Leases (Equipment) | 3 Months Ended |
Mar. 31, 2017 | |
Lower Range | |
Debt Instrument [Line Items] | |
Debt instrument, term | 36 months |
Upper Range | |
Debt Instrument [Line Items] | |
Debt instrument, term | 66 months |
DEBT OBLIGATIONS (Future Minimu
DEBT OBLIGATIONS (Future Minimum Lease Payments) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Future minimum lease payments due | |
April 1, 2017 - December 31, 2017 | $ 3,521 |
2,018 | 4,685 |
2,019 | 4,540 |
2,020 | 3,259 |
2,021 | 1,684 |
2,022 | 173 |
Thereafter | 0 |
Total minimum lease payments | 17,862 |
Less: imputed interest | (2,190) |
Present value of net minimum lease payments | $ 15,672 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 364,000 | $ 856,000 |
Derivative liabilities | 2,010,000 | 0 |
Deferred | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Expected reclassification of current hedges from AOCI into earnings over the next 12 months (less than in 2015) | $ 0 | $ 0 |
DERIVATIVES (Schedule of (Gains
DERIVATIVES (Schedule of (Gains) Losses Recorded In Relation to Derivatives) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative [Line Items] | ||
Deferred hedge gain reclassified from Accumulated Other Comprehensive Income (“AOCI”) into earnings | $ 5,434 | $ 13,534 |
Realized (gain) loss on settlement of TBAs, net | (2,474) | 7,536 |
Not designated as hedging instrument | Realized/unrealized (gain) loss on investments | Interest rate swap | ||
Derivative [Line Items] | ||
Unrealized loss on interest rate derivatives | 120 | 0 |
Not designated as hedging instrument | Realized/unrealized (gain) loss on investments | Other Contract | ||
Derivative [Line Items] | ||
Unrealized loss recognized related to TBAs | 2,382 | 341 |
Realized (gain) loss on settlement of TBAs, net | (2,474) | 7,536 |
Reclassification from AOCI into earnings | Net realized (gain) loss on derivatives designated as cash flow hedges | ||
Derivative [Line Items] | ||
Deferred hedge gain reclassified from Accumulated Other Comprehensive Income (“AOCI”) into earnings | 0 | (20) |
Reclassification from AOCI into earnings | Cash flow hedges | Designated as hedging instrument | Net realized (gain) loss on derivatives designated as cash flow hedges | Interest expense | ||
Derivative [Line Items] | ||
Deferred hedge gain reclassified from Accumulated Other Comprehensive Income (“AOCI”) into earnings | $ 0 | $ (20) |
FAIR VALUE OF FINANCIAL INSTR66
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Values and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Real estate securities, available-for-sale | $ 2,032 | $ 1,950 | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878 | 627,304 | ||
Real estate related and other loans, held-for-sale, net | 59,043 | 55,612 | ||
Cash and cash equivalents | 126,970 | 140,140 | $ 32,126 | $ 45,651 |
Restricted cash | 7,213 | 6,404 | ||
Liabilities | ||||
Repurchase agreements | 310,630 | 600,964 | ||
Credit facilities and obligations under capital leases | 114,851 | 115,284 | ||
Junior subordinated notes payable | 51,214 | $ 51,217 | ||
Carrying Value | ||||
Assets | ||||
Real estate securities, available-for-sale | 2,032 | |||
Real estate securities, available-for-sale - pledged as collateral | 326,878 | |||
Real estate related and other loans, held-for-sale, net | 59,043 | |||
Residential mortgage loans, held-for-sale, net | 228 | |||
Cash and cash equivalents | 126,970 | |||
Restricted cash | 7,213 | |||
Non-hedge derivative assets | 364 | |||
Liabilities | ||||
Repurchase agreements | 310,630 | |||
Credit facilities and obligations under capital leases | 114,851 | |||
Junior subordinated notes payable | 51,214 | |||
Non-hedge derivative liabilities | 2,010 | |||
Estimated Fair Value | ||||
Assets | ||||
Real estate securities, available-for-sale | 2,032 | |||
Real estate securities, available-for-sale - pledged as collateral | 326,878 | |||
Real estate related and other loans, held-for-sale, net | 64,575 | |||
Residential mortgage loans, held-for-sale, net | 259 | |||
Cash and cash equivalents | 126,970 | |||
Restricted cash | 7,213 | |||
Non-hedge derivative assets | 364 | |||
Liabilities | ||||
Repurchase agreements | 310,630 | |||
Credit facilities and obligations under capital leases | 117,872 | |||
Junior subordinated notes payable | 26,714 | |||
Non-hedge derivative liabilities | $ 2,010 |
FAIR VALUE OF FINANCIAL INSTR67
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Fair Value Recurring Basis) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | $ 326,878,000 | $ 627,304,000 |
Derivative assets total | 364,000 | 856,000 |
Derivative liabilities: | ||
Derivative liabilities total | 2,010,000 | $ 0 |
Carrying Value | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Non-hedge derivative assets | 364,000 | |
Derivative liabilities: | ||
TBAs, not treated as hedges | 2,010,000 | |
Carrying Value | Measured on a Recurring Basis | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Derivative assets total | 364,000 | |
Derivative liabilities: | ||
Derivative liabilities total | 2,010,000 | |
Carrying Value | Measured on a Recurring Basis | Not designated as hedging instrument | ||
Derivative liabilities: | ||
TBAs, not treated as hedges | 2,010,000 | |
Carrying Value | Measured on a Recurring Basis | Not designated as hedging instrument | Interest rate cap | ||
Derivative assets: | ||
Non-hedge derivative assets | 364,000 | |
Carrying Value | Measured on a Recurring Basis | ABS - Non-Agency RMBS | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Carrying Value | Measured on a Recurring Basis | FNMA/FHLMC | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Estimated Fair Value | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Non-hedge derivative assets | 364,000 | |
Derivative liabilities: | ||
TBAs, not treated as hedges | 2,010,000 | |
Estimated Fair Value | Measured on a Recurring Basis | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Derivative assets total | 364,000 | |
Derivative liabilities: | ||
Derivative liabilities total | 2,010,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Not designated as hedging instrument | ||
Derivative liabilities: | ||
TBAs, not treated as hedges | 2,010,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Not designated as hedging instrument | Interest rate cap | ||
Derivative assets: | ||
Non-hedge derivative assets | 364,000 | |
Estimated Fair Value | Measured on a Recurring Basis | ABS - Non-Agency RMBS | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Estimated Fair Value | Measured on a Recurring Basis | FNMA/FHLMC | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 0 | |
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Derivative assets total | 364,000 | |
Derivative liabilities: | ||
Derivative liabilities total | 2,010,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | Not designated as hedging instrument | ||
Derivative liabilities: | ||
TBAs, not treated as hedges | 2,010,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | Not designated as hedging instrument | Interest rate cap | ||
Derivative assets: | ||
Non-hedge derivative assets | 364,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | ABS - Non-Agency RMBS | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | FNMA/FHLMC | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 326,878,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Market Quotations (Unobservable) | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 0 | |
Real estate securities, available-for-sale - pledged as collateral | 0 | |
Derivative assets total | 0 | |
Derivative liabilities: | ||
Derivative liabilities total | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Market Quotations (Unobservable) | Not designated as hedging instrument | ||
Derivative liabilities: | ||
TBAs, not treated as hedges | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Market Quotations (Unobservable) | Not designated as hedging instrument | Interest rate cap | ||
Derivative assets: | ||
Non-hedge derivative assets | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Market Quotations (Unobservable) | ABS - Non-Agency RMBS | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Market Quotations (Unobservable) | FNMA/FHLMC | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Internal Pricing Models | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Real estate securities, available-for-sale - pledged as collateral | 0 | |
Derivative assets total | 0 | |
Derivative liabilities: | ||
Derivative liabilities total | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Internal Pricing Models | Not designated as hedging instrument | ||
Derivative liabilities: | ||
TBAs, not treated as hedges | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Internal Pricing Models | Not designated as hedging instrument | Interest rate cap | ||
Derivative assets: | ||
Non-hedge derivative assets | 0 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Internal Pricing Models | ABS - Non-Agency RMBS | ||
Derivative assets: | ||
Real estate securities, available-for-sale: | 2,032,000 | |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 Market Quotations (Unobservable) | Internal Pricing Models | FNMA/FHLMC | ||
Derivative assets: | ||
Real estate securities, available-for-sale - pledged as collateral | $ 0 |
FAIR VALUE OF FINANCIAL INSTR68
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amortized Cost Basis | $ 817 | |
Real estate securities, available-for-sale | $ 2,032 | $ 1,950 |
Discount Rate (as percent) | 12.00% | |
Prepayment Speed (as percent) | 4.60% | |
Cumulative Default Rate (as percent) | 4.20% | |
Loss Severity (as percent) | 64.90% | |
ABS - Non-Agency RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amortized Cost Basis | $ 817 | |
Real estate securities, available-for-sale | 2,032 | |
Real Estate Securities Available For Sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amortized Cost Basis | 817 | |
Real estate securities, available-for-sale | 2,032 | |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Amortized Cost Basis | 817 | |
Real estate securities, available-for-sale | $ 2,032 |
FAIR VALUE OF FINANCIAL INSTR69
FAIR VALUE OF FINANCIAL INSTRUMENTS (Change in Fair Value of Level 3 Investments) (Details) | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Purchases, sales and repayments (A) | |
Transfers into Level 3 | $ 0 |
Transfers out of Level 3 | 0 |
Level 3 Market Quotations (Unobservable) | Measured on a Recurring Basis | ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at December 31, 2016 | 1,950,000 |
Total gains (losses) | |
Included in other comprehensive income (loss) | 47,000 |
Amortization included in interest income | 47,000 |
Purchases, sales and repayments (A) | |
Proceeds | (12,000) |
Balance at March 31, 2017 | 2,032,000 |
Purchases | 0 |
Sales | $ 0 |
FAIR VALUE OF FINANCIAL INSTR70
FAIR VALUE OF FINANCIAL INSTRUMENTS (Loan Valuation) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 59,043,000 | |
Discount Rate (as percent) | 12.00% | |
Loss Severity (as percent) | 64.90% | |
Face amount | $ 141,579,000 | |
Corporate Loans | Lower Range | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Discount Rate (as percent) | 0.00% | |
Loss Severity (as percent) | 0.00% | |
Corporate Loans | Upper Range | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Discount Rate (as percent) | 22.50% | |
Loss Severity (as percent) | 100.00% | |
Corporate Loans | Weighted Average | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Discount Rate (as percent) | 22.50% | |
Loss Severity (as percent) | 48.00% | |
Real Estate Related and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 59,043,000 | $ 55,612,000 |
Fair Value | 64,575,000 | |
Face amount | 141,579,000 | |
Real Estate Related and Other Loans | Held-for-sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 59,043,000 | |
Face amount | 141,579,000 | |
Real Estate Related and Other Loans | Held-for-sale | Corporate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 59,043,000 | |
Fair Value | 64,575,000 | |
Face amount | 123,812,000 | |
Real Estate Related and Other Loans | Held-for-sale | Mezzanine Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | 0 | |
Face amount | $ 17,767,000 |
EQUITY AND EARNINGS PER SHARE71
EQUITY AND EARNINGS PER SHARE (Outstanding Options) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Options [Roll Forward] | |
Balance (in shares) | shares | 5,126,906 |
Expired (in shares) | shares | (40,330) |
Balance (in shares) | shares | 5,086,576 |
Exercisable (in shares) | shares | 3,934,081 |
Weighted Average Strike Price [Roll Forward] | |
Outstanding (in dollars per share) | $ / shares | $ 2.79 |
Expirations (in dollars per share) | $ / shares | 14.44 |
Outstanding (in dollars per share) | $ / shares | 2.70 |
Exercisable (in dollars per share) | $ / shares | $ 2.77 |
Weighted Average Life Remaining | |
Outstanding, Weighted Average Life Remaining | 5 years 10 months 28 days |
Exercisable, Weighted Average Life Remaining | 5 years 9 months 22 days |
EQUITY AND EARNINGS PER SHARE72
EQUITY AND EARNINGS PER SHARE (Outstanding Options Summary) (Details) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 5,086,576 | |
Weighted average strike price (in dollars per share) | $ 2.70 | $ 2.79 |
Issued Prior to 2011 | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 76,000 | |
Weighted average strike price (in dollars per share) | $ 12.44 | |
Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 5,010,576 | |
Weighted average strike price (in dollars per share) | $ 2.55 | |
Held by the Manager | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 3,929,663 | |
Held by the Manager | Issued Prior to 2011 | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 71,915 | |
Held by the Manager | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 3,857,748 | |
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 1,156,580 | |
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | Issued Prior to 2011 | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 4,085 | |
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 1,152,495 | |
Issued to the independent directors | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 333 | |
Issued to the independent directors | Issued Prior to 2011 | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 0 | |
Issued to the independent directors | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 333 |
EQUITY AND EARNINGS PER SHARE73
EQUITY AND EARNINGS PER SHARE (Details) (Narrative) - USD ($) $ / shares in Units, $ in Millions | May 04, 2017 | Apr. 28, 2017 | Feb. 27, 2017 | Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||
Dilutive common stock equivalents (in shares) | 1,630,300 | ||||||
Stock options | |||||||
Class of Stock [Line Items] | |||||||
Potentially dilutive securities (in shares) | 151,234 | 455,115 | |||||
Common stock equivalents | |||||||
Class of Stock [Line Items] | |||||||
Potentially dilutive securities (in shares) | 1,941,409 | ||||||
Issued to the independent directors | |||||||
Class of Stock [Line Items] | |||||||
Shares issued to independent directors (in shares) | 18,074 | ||||||
Subsequent event | |||||||
Class of Stock [Line Items] | |||||||
Dividends paid | $ 1.4 | ||||||
Series B Cumulative Redeemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | ||||||
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% | 9.75% | ||||
Series B Cumulative Redeemable Preferred Stock | Subsequent event | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | ||||||
Preferred stock, dividend rate (as percent) | 9.75% | ||||||
Series C Cumulative Redeemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | ||||||
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% | 8.05% | ||||
Series C Cumulative Redeemable Preferred Stock | Subsequent event | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | ||||||
Preferred stock, dividend rate (as percent) | 8.05% | ||||||
Series D Cumulative Redemable Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | ||||||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | ||||
Series D Cumulative Redemable Preferred Stock | Subsequent event | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | ||||||
Preferred stock, dividend rate (as percent) | 8.375% |
EQUITY AND EARNINGS PER SHARE74
EQUITY AND EARNINGS PER SHARE (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator for basic and diluted earnings per share: | ||
(Loss) Income Applicable to Common Stockholders | $ (14,349) | $ 72,024 |
Denominator: | ||
Denominator for basic earnings per share - weighted average shares (in shares) | 66,841,977 | 66,654,598 |
Effect of dilutive securities | ||
Options (in shares) | 1,630,300 | |
Denominator for diluted earnings per share - adjusted weighted average shares (in shares) | 66,841,977 | 68,284,898 |
Basic earnings per share: | ||
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | $ (0.21) | $ 1.08 |
Diluted earnings per share: | ||
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | $ (0.21) | $ 1.05 |
TRANSACTIONS WITH AFFILIATES 75
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Sep. 30, 2016USD ($) | Apr. 30, 2010USD ($)security | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2006 | |
Related Party Transaction [Line Items] | ||||||
Lease term | 1 year | |||||
Period management fee earned | 12 months | |||||
Manager advisory fee (as percent) | 1.50% | |||||
Incentive compensation percentage (as percent) | 25.00% | |||||
Simple interest rate in incentive calculation (as percent) | 10.00% | |||||
Shares held by Fortress and affiliates (in shares) | shares | 5,100,000 | |||||
Stock options outstanding (in shares) | shares | 5,086,576 | |||||
Due to affiliates | $ 892 | $ 892 | ||||
Investments in and advances to affiliates, at fair value, gross additions | $ 75,000 | |||||
Expected yield (as percent) | 22.50% | |||||
Proceeds from collection of notes receivable | $ 109,900 | |||||
Corporate loan investment | 2,032 | $ 1,950 | ||||
Interest income | $ 7,888 | $ 21,039 | ||||
CDO | ||||||
Related Party Transaction [Line Items] | ||||||
Number of securities (in securities) | security | 2 | |||||
Subprime Portfolio I | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fee percentage (as percent) | 0.50% | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options outstanding (in shares) | shares | 3,900,000 | |||||
Corporate loan investment | $ 64,400 | |||||
Interest income | 3,400 | $ 8,100 | ||||
Subprime Mortgage Loans Subject to Call Option | Subprime Portfolio I | ||||||
Related Party Transaction [Line Items] | ||||||
Total securitized loans (unpaid principal balance) | 227,300 | |||||
Subprime Mortgage Loans Subject to Call Option | Subprime Portfolio II | ||||||
Related Party Transaction [Line Items] | ||||||
Total securitized loans (unpaid principal balance) | $ 338,400 |
TRANSACTIONS WITH AFFILIATES 76
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Amounts Incurred Under Management Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | ||
Management fees | $ 2,552 | $ 2,550 |
Expense reimbursement to the Manager | 125 | 125 |
Incentive compensation | 0 | 0 |
Total Management fee to affiliate | $ 2,677 | $ 2,675 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Current: | ||
Federal | $ 539 | $ 43 |
State and Local | 0 | 11 |
Total Current Provision | 539 | 54 |
Deferred: | ||
Federal | 0 | (9) |
State and Local | 0 | (1) |
Total Deferred Benefit | 0 | (10) |
Total Provision for Income Taxes | $ 539 | $ 44 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 391 | $ 358 |
Depreciation and amortization | 39,039 | 38,598 |
Accrued expenses | 1,764 | 2,885 |
Interest | 13,234 | 16,503 |
Net operating losses | 176,821 | 162,629 |
Other | 2,094 | 2,036 |
Total deferred tax assets | 233,343 | 223,009 |
Less valuation allowance | (153,541) | (133,192) |
Net deferred tax assets | 79,802 | 89,817 |
Deferred tax liabilities: | ||
Leaseholds | 13,529 | 13,681 |
Cancellation of debt | 66,178 | 75,632 |
Other | 95 | 504 |
Total deferred tax liabilities | 79,802 | 89,817 |
Net deferred income tax assets | $ 0 | $ 0 |
IMPAIRMENT (Details)
IMPAIRMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Investments [Line Items] | ||
Debt securities | $ 0 | $ 110 |
Valuation allowance on loans | 0 | 2,198 |
Total impairment | 0 | 2,308 |
Debt securities | ||
Schedule of Investments [Line Items] | ||
Debt securities | $ 0 | $ 110 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | May 04, 2017 | Feb. 27, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||||
Dividends declared | $ 1,395 | |||
Series B preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | |||
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% | 9.75% | |
Series C preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | |||
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% | 8.05% | |
Series D preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | |||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | |
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividends declared | $ 1,400 | |||
Subsequent event | Series B preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | |||
Preferred stock, dividend rate (as percent) | 9.75% | |||
Subsequent event | Series C preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | |||
Preferred stock, dividend rate (as percent) | 8.05% | |||
Subsequent event | Series D preferred stock | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | |||
Preferred stock, dividend rate (as percent) | 8.375% |