Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'ARBOR REALTY TRUST INC | ' | ' |
Entity Central Index Key | '0001253986 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $217.20 |
Entity Common Stock, Shares Outstanding | ' | 49,136,308 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Cash and cash equivalents | $60,389,552 | $29,188,889 |
Restricted cash (includes $54,051,439 and $41,537,212 from consolidated VIEs, respectively) | 54,962,316 | 42,535,514 |
Loans and investments, net (includes $1,196,434,032 and $1,113,745,356 from consolidated VIEs, respectively) | 1,523,699,653 | 1,325,667,053 |
Available-for-sale securities, at fair value (includes $0 and $1,100,000 from consolidated VIEs, respectively) | 37,315,652 | 3,552,736 |
Securities held-to-maturity, net | ' | 42,986,980 |
Investments in equity affiliates | 4,680,306 | 59,581,242 |
Real estate owned, net (includes $80,787,215 and $80,787,215 from consolidated VIEs, respectively) | 111,718,177 | 124,148,199 |
Real estate held-for-sale, net | 11,477,676 | ' |
Due from related party (includes $91,988 and $0 from consolidated VIEs, respectively) | 98,058 | 24,094 |
Prepaid management fee - related party | 19,047,949 | 19,047,949 |
Other assets (includes $19,861,310 and $11,709,103 from consolidated VIEs, respectively) | 54,083,143 | 55,148,624 |
Total assets | 1,877,472,482 | 1,701,881,280 |
Liabilities and Equity: | ' | ' |
Repurchase agreements and credit facilities | 159,125,023 | 130,661,619 |
Collateralized debt obligations (includes $639,622,981 and $812,452,845 from consolidated VIEs, respectively) | 639,622,981 | 812,452,845 |
Collateralized loan obligations (includes $264,500,000 and $87,500,000 from consolidated VIEs, respectively) | 264,500,000 | 87,500,000 |
Junior subordinated notes to subsidiary trust issuing preferred securities | 159,291,427 | 158,767,145 |
Notes payable | 2,500,000 | 51,457,708 |
Mortgage note payable - real estate owned | 42,745,650 | 53,751,004 |
Mortgage note payable - real estate held-for-sale | 11,005,354 | ' |
Due to related party | 2,794,087 | 3,084,627 |
Due to borrowers (includes $0 and $1,320,943 from consolidated VIEs, respectively) | 20,326,030 | 23,056,640 |
Deferred revenue | 77,123,133 | 77,123,133 |
Other liabilities (includes $13,944,737 and $22,013,896 from consolidated VIEs, respectively) | 60,842,515 | 72,765,437 |
Total liabilities | 1,439,876,200 | 1,470,620,158 |
Commitments and contingencies | ' | ' |
Arbor Realty Trust, Inc. stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value: 100,000,000 shares authorized; 8.25% Series A cumulative redeemable preferred stock, $38,787,500 aggregate liquidation preference; 1,551,500 shares issued and outstanding at December 31, 2013, no shares issued and outstanding at December 31, 2012; 7.75% Series B cumulative redeemable preferred stock, $31,500,000 aggregate liquidation preference; 1,260,000 shares issued and outstanding at December 31, 2013, no shares issued and outstanding at December 31, 2012 | 67,654,655 | ' |
Common stock, $0.01 par value: 500,000,000 shares authorized; 51,787,075 shares issued, 49,136,308 shares outstanding at December 31, 2013 and 33,899,992 shares issued, 31,249,225 shares outstanding at December 31, 2012 | 517,870 | 339,000 |
Additional paid-in capital | 623,993,245 | 493,211,222 |
Treasury stock, at cost - 2,650,767 shares at December 31, 2013 and 2012 | -17,100,916 | -17,100,916 |
Accumulated deficit | -212,231,319 | -207,558,257 |
Accumulated other comprehensive loss | -25,237,253 | -39,561,700 |
Total Arbor Realty Trust, Inc. stockholders' equity | 437,596,282 | 229,329,349 |
Noncontrolling interest in consolidated entity | 0 | 1,931,773 |
Total equity | 437,596,282 | 231,261,122 |
Total liabilities and equity | $1,877,472,482 | $1,701,881,280 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted cash | $54,962,316 | $42,535,514 |
Loans and investments, net | 1,523,699,653 | 1,325,667,053 |
Available-for-sale securities, at fair value | 37,315,652 | 3,552,736 |
Real estate owned, net | 111,718,177 | 124,148,199 |
Due from related party | 98,058 | 24,094 |
Other assets | 54,083,143 | 55,148,624 |
Collateralized debt obligations | 639,622,981 | 812,452,845 |
Collateralized loan obligations | 264,500,000 | 87,500,000 |
Due to borrowers | 20,326,030 | 23,056,640 |
Other liabilities | 60,842,515 | 72,765,437 |
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, dividend rate (as a percent) | 12.50% | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 51,787,075 | 33,899,992 |
Common stock, shares outstanding (in shares) | 49,136,308 | 31,249,225 |
Treasury stock, shares (in shares) | 2,650,767 | 2,650,767 |
8.25% Series A cumulative redeemable preferred stock | ' | ' |
Preferred stock, dividend rate (as a percent) | 8.25% | ' |
Preferred stock, aggregate liquidation preference | 38,787,500 | ' |
Preferred stock, shares issued (in shares) | 1,551,500 | 0 |
Preferred stock, shares outstanding (in shares) | 1,551,500 | 0 |
7.75% Series B cumulative redeemable preferred stock | ' | ' |
Preferred stock, dividend rate (as a percent) | 7.75% | ' |
Preferred stock, aggregate liquidation preference | 31,500,000 | ' |
Preferred stock, shares issued (in shares) | 1,260,000 | 0 |
Preferred stock, shares outstanding (in shares) | 1,260,000 | 0 |
Consolidated VIEs | ' | ' |
Restricted cash | 54,051,439 | 41,537,212 |
Loans and investments, net | 1,196,434,032 | 1,113,745,356 |
Available-for-sale securities, at fair value | 0 | 1,100,000 |
Real estate owned, net | 80,787,215 | 80,787,215 |
Due from related party | 91,988 | 0 |
Other assets | 19,861,310 | 11,709,103 |
Collateralized debt obligations | 639,622,981 | 812,452,845 |
Collateralized loan obligations | 264,500,000 | 87,500,000 |
Due to borrowers | 0 | 1,320,943 |
Other liabilities | $13,944,737 | $22,013,896 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Interest income | $99,031,623 | $79,998,762 | $73,867,556 |
Interest expense | 42,065,151 | 40,866,832 | 51,651,933 |
Net interest income | 56,966,472 | 39,131,930 | 22,215,623 |
Other revenue: | ' | ' | ' |
Property operating income | 27,829,358 | 28,021,646 | 21,937,250 |
Other income, net | 2,290,714 | 1,280,289 | 188,485 |
Total other revenue | 30,120,072 | 29,301,935 | 22,125,735 |
Other expenses: | ' | ' | ' |
Employee compensation and benefits | 12,042,332 | 10,173,572 | 11,195,663 |
Selling and administrative | 10,603,247 | 7,882,914 | 7,325,801 |
Property operating expenses | 24,568,369 | 25,958,586 | 20,122,864 |
Depreciation and amortization | 6,668,381 | 5,327,493 | 4,789,911 |
Impairment loss on real estate owned | 1,000,000 | ' | ' |
Provision for loan losses (net of recoveries) | 4,287,652 | 22,946,396 | 38,542,888 |
Loss on sale and restructuring of loans | ' | ' | 5,710,000 |
Management fee - related party | 10,900,000 | 10,000,000 | 8,300,000 |
Total other expenses | 70,069,981 | 82,288,961 | 95,987,127 |
Income (loss) from continuing operations before gain on extinguishment of debt, (loss) income from equity affiliates and benefit from income taxes | 17,016,563 | -13,855,096 | -51,645,769 |
Gain on extinguishment of debt | 4,930,772 | 30,459,023 | 10,878,218 |
(Loss) income from equity affiliates | -204,475 | -697,856 | 3,671,386 |
Income (loss) before benefit from income taxes | 21,742,860 | 15,906,071 | -37,096,165 |
Benefit from income taxes | ' | 801,558 | ' |
Income (loss) from continuing operations | 21,742,860 | 16,707,629 | -37,096,165 |
Impairment loss on real estate held-for-sale | ' | ' | -1,450,000 |
Gain on sale of real estate held-for-sale | ' | 3,953,455 | ' |
(Loss) income from operations of real estate held-for-sale | -444,123 | 1,055,371 | -1,549,892 |
(Loss) income from discontinued operations | -444,123 | 5,008,826 | -2,999,892 |
Net income (loss) | 21,298,737 | 21,716,455 | -40,096,057 |
Preferred stock dividends | 4,506,583 | ' | ' |
Net income attributable to noncontrolling interest | 124,199 | 215,567 | 215,656 |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders | $16,667,955 | $21,500,888 | ($40,311,713) |
Basic earnings (loss) per common share: | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends (in dollars per share) | $0.40 | $0.61 | ($1.49) |
(Loss) income from discontinued operations (in dollars per share) | ($0.01) | $0.19 | ($0.12) |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.39 | $0.80 | ($1.61) |
Diluted earnings (loss) per common share: | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends (in dollars per share) | $0.40 | $0.61 | ($1.49) |
(Loss) income from discontinued operations (in dollars per share) | ($0.01) | $0.18 | ($0.12) |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.39 | $0.79 | ($1.61) |
Weighted average number of shares of common stock outstanding: | ' | ' | ' |
Basic (in shares) | 42,399,872 | 26,956,938 | 24,968,894 |
Diluted (in shares) | 42,835,144 | 27,211,287 | 24,968,894 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income (loss) | $21,298,737 | $21,716,455 | ($40,096,057) |
Unrealized gain (loss) on securities available-for-sale, net | 382,130 | -723,632 | 1,000,000 |
Net unrealized gain on securities transferred to available-for-sale from held-to-maturity | 431,476 | ' | ' |
Reclassification of unrealized gain on securities available-for-sale realized into earnings | -100,000 | ' | ' |
Unrealized loss on derivative financial instruments, net | -520,195 | -7,698,630 | -20,698,621 |
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 14,131,036 | 16,564,607 | 27,163,893 |
Comprehensive income (loss) | 35,623,184 | 29,858,800 | -32,630,785 |
Less: Preferred stock dividends | 4,506,583 | ' | ' |
Comprehensive income attributable to noncontrolling interest | 124,199 | 215,567 | 215,656 |
Comprehensive income (loss) attributable to Arbor Realty Trust, Inc. common stockholders | $30,992,402 | $29,643,233 | ($32,846,441) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Private REIT preferred stock | 8.25% Series A preferred stock | 7.75% Series B preferred stock | Total Arbor Realty Trust, Inc. Stockholders' Equity | Total Arbor Realty Trust, Inc. Stockholders' Equity | Total Arbor Realty Trust, Inc. Stockholders' Equity | Total Arbor Realty Trust, Inc. Stockholders' Equity | Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non-controlling Interest |
Private REIT preferred stock | 8.25% Series A preferred stock | 7.75% Series B preferred stock | 8.25% Series A preferred stock | 7.75% Series B preferred stock | Private REIT preferred stock | |||||||||||||
Balance at Dec. 31, 2010 | $206,415,243 | ' | ' | ' | $204,415,381 | ' | ' | ' | ' | ' | ' | $257,568 | $450,686,382 | ($10,669,585) | ($180,689,667) | ' | ($55,169,317) | $1,999,862 |
Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,756,810 | ' | -980,597 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 3,974,882 | ' | ' | ' | 3,974,882 | ' | ' | ' | ' | ' | ' | 6,669 | 3,968,213 | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 666,927 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | -5,746,567 | ' | ' | ' | -5,746,567 | ' | ' | ' | ' | ' | ' | ' | ' | -5,746,567 | ' | ' | ' | ' |
Purchase of treasury stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,500,000 | ' | ' | ' | ' |
Stock-based compensation | 1,343,650 | ' | ' | ' | 1,343,650 | ' | ' | ' | ' | ' | ' | 3,550 | 1,340,100 | ' | ' | ' | ' | ' |
Stock-based compensation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 355,000 | ' | ' | ' | ' | ' | ' |
Distributions-preferred stock | -14,500 | -14,500 | ' | ' | ' | -14,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14,500 | ' | ' |
Net income (loss) | -40,096,057 | ' | ' | ' | -40,311,713 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -40,311,713 | ' | ' | 215,656 |
Decrease in non-controlling interest | -281,390 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -281,390 |
Unrealized gain (loss) on securities available-for-sale, net | 1,000,000 | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Unrealized loss on derivative financial instruments, net | -20,698,621 | ' | ' | ' | -20,698,621 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -20,698,621 | ' |
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 27,163,893 | ' | ' | ' | 27,163,893 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,163,893 | ' |
Balance at Dec. 31, 2011 | 173,060,533 | ' | ' | ' | 171,126,405 | ' | ' | ' | ' | ' | ' | 267,787 | 455,994,695 | -16,416,152 | -221,015,880 | ' | -47,704,045 | 1,934,128 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,778,737 | ' | -2,480,597 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 36,645,500 | ' | ' | ' | 36,645,500 | ' | ' | ' | ' | ' | ' | 70,000 | 36,575,500 | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' |
Purchase of treasury stock | -684,764 | ' | ' | ' | -684,764 | ' | ' | ' | ' | ' | ' | ' | ' | -684,764 | ' | ' | ' | ' |
Purchase of treasury stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -170,170 | ' | ' | ' | ' |
Stock-based compensation | 642,240 | ' | ' | ' | 642,240 | ' | ' | ' | ' | ' | ' | 1,213 | 641,027 | ' | ' | ' | ' | ' |
Stock-based compensation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 121,255 | ' | ' | ' | ' | ' | ' |
Distributions-common stock | -8,031,029 | ' | ' | ' | -8,031,029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,031,029 | ' | ' | ' |
Distributions-preferred stock | -12,236 | -12,236 | ' | ' | ' | -12,236 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,236 | ' | ' |
Net income (loss) | 21,716,455 | ' | ' | ' | 21,500,888 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,500,888 | ' | ' | 215,567 |
Decrease in non-controlling interest | -217,922 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -217,922 |
Unrealized gain (loss) on securities available-for-sale, net | -723,632 | ' | ' | ' | -723,632 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -723,632 | ' |
Unrealized loss on derivative financial instruments, net | -7,698,630 | ' | ' | ' | -7,698,630 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,698,630 | ' |
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 16,564,607 | ' | ' | ' | 16,564,607 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,564,607 | ' |
Balance at Dec. 31, 2012 | 231,261,122 | ' | ' | ' | 229,329,349 | ' | ' | ' | ' | ' | ' | 339,000 | 493,211,222 | -17,100,916 | -207,558,257 | ' | -39,561,700 | 1,931,773 |
Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,899,992 | ' | -2,650,767 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | 129,360,751 | ' | ' | ' | 129,360,751 | ' | ' | ' | ' | ' | ' | 176,250 | 129,184,501 | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,625,000 | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock | ' | ' | 37,315,694 | 30,338,961 | ' | ' | 37,315,694 | 30,338,961 | ' | 37,315,694 | 30,338,961 | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,551,500 | 1,260,000 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 1,600,142 | ' | ' | ' | 1,600,142 | ' | ' | ' | ' | ' | ' | 2,627 | 1,597,515 | ' | ' | ' | ' | ' |
Stock-based compensation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,750 | ' | ' | ' | ' | ' | ' |
Forfeiture of unvested restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7 | 7 | ' | ' | ' | ' | ' |
Forfeiture of unvested restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -667 | ' | ' | ' | ' | ' | ' |
Distributions-common stock | -21,326,517 | ' | ' | ' | -21,326,517 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21,326,517 | ' | ' | ' |
Distributions-preferred stock | -4,506,583 | -14,500 | ' | ' | -4,506,583 | -14,500 | ' | ' | ' | ' | ' | ' | ' | ' | -4,506,583 | -14,500 | ' | ' |
Net income (loss) | 21,298,737 | ' | ' | ' | 21,174,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,174,538 | ' | ' | 124,199 |
Decrease in non-controlling interest | -2,055,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,055,972 |
Unrealized gain (loss) on securities available-for-sale, net | 382,130 | ' | ' | ' | 382,130 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 382,130 | ' |
Net unrealized gain on securities transferred to available-for-sale from held-to-maturity | 431,476 | ' | ' | ' | 431,476 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 431,476 | ' |
Reclassification of unrealized gain on securities available-for-sale realized into earnings | -100,000 | ' | ' | ' | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 | ' |
Unrealized loss on derivative financial instruments, net | -520,195 | ' | ' | ' | -520,195 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -520,195 | ' |
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings | 14,131,036 | ' | ' | ' | 14,131,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,131,036 | ' |
Balance at Dec. 31, 2013 | $437,596,282 | ' | ' | ' | $437,596,282 | ' | ' | ' | $67,654,655 | ' | ' | $517,870 | $623,993,245 | ($17,100,916) | ($212,231,319) | ' | ($25,237,253) | ' |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 2,811,500 | ' | ' | 51,787,075 | ' | -2,650,767 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2013 | |
Preferred stock, dividend rate (as a percent) | 12.50% |
8.25% Series A preferred stock | ' |
Preferred stock, dividend rate (as a percent) | 8.25% |
7.75% Series B preferred stock | ' |
Preferred stock, dividend rate (as a percent) | 7.75% |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net income (loss) | $21,298,737 | $21,716,455 | ($40,096,057) |
Adjustments to reconcile net income (loss) to net cash provided by / (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 7,250,601 | 5,904,089 | 5,951,525 |
Stock-based compensation | 1,600,142 | 578,190 | 1,407,700 |
Gain on sale of securities | -1,100,000 | ' | ' |
Gain on sale of real estate held-for-sale | ' | -3,953,455 | ' |
Reversal of liabilities related to discontinued operations | ' | -1,175,120 | ' |
Impairment loss on real estate owned | 1,000,000 | ' | ' |
Impairment loss on real estate held-for-sale | ' | ' | 1,450,000 |
Gain on extinguishment of debt | -4,930,772 | -30,459,023 | -10,878,218 |
Provision for loan losses (net of recoveries) | 4,287,652 | 22,946,396 | 38,542,888 |
Loss on sale and restructuring of loans | ' | ' | 4,710,000 |
Amortization and accretion of interest, fees and intangible asset, net | -3,127,093 | 1,634,410 | 10,167,955 |
Change in fair value of non-qualifying swaps and linked transactions | 1,798,161 | 1,334,189 | -246,284 |
Loss (income) from equity affiliates | 204,475 | 697,856 | -3,671,386 |
Changes in operating assets and liabilities: | ' | ' | ' |
Other assets | -6,282,439 | 835,678 | -964,199 |
Distributions of operations from equity affiliates | 114,277 | 97,863 | 96,991 |
Other liabilities | 685,682 | -1,633,474 | 3,324,496 |
Change in restricted cash | 87,425 | 970,235 | 576,447 |
Due to/from related party | -364,504 | 671,762 | -10,761,480 |
Net cash provided by / (used in) operating activities | 22,522,344 | 20,166,051 | -389,622 |
Investing activities: | ' | ' | ' |
Loans and investments funded, originated and purchased, net | -594,127,146 | -261,875,190 | -219,608,438 |
Payoffs and paydowns of loans and investments | 378,738,674 | 185,675,195 | 157,753,440 |
Proceeds from sale of loans | 4,424,097 | 17,945,000 | 45,590,400 |
Due to borrowers and reserves | -585,143 | -505,093 | -1,397,413 |
Change in restricted cash | ' | ' | -1,050,000 |
Deferred fees | 5,305,848 | 3,062,425 | 2,860,067 |
Purchases of securities, net | -29,024,327 | -69,041,570 | -36,464,628 |
Principal collection on securities, net | 38,614,122 | 55,895,146 | 6,515,800 |
Investment in real estate, net | -8,004,139 | -4,206,576 | -1,388,695 |
Proceeds from sale of available-for-sale security | 2,100,000 | ' | ' |
Redemption of investment in preferred shares, net | 2,418,528 | ' | ' |
Proceeds from investments in real estate, net | ' | ' | 1,497,278 |
Proceeds from sale of real estate, net | ' | 26,443,882 | 1,600,000 |
Contributions to equity affiliates | ' | -257,505 | -793,500 |
Distributions from equity affiliates | 62,500 | 330,608 | 4,536,716 |
Net cash used in investing activities | -200,076,986 | -46,533,678 | -40,348,973 |
Financing activities: | ' | ' | ' |
Proceeds from repurchase agreements, loan participations, credit facilities and notes payable | 235,145,560 | 162,922,840 | 110,763,000 |
Payoffs and paydowns of repurchase agreements, loan participations and credit facilities | -205,482,156 | -108,366,221 | -4,848,997 |
Payoff and paydown of mortgage notes payable | ' | -20,750,000 | -1,600,000 |
Proceeds from collateralized debt obligations | ' | ' | 7,800,000 |
Proceeds from collateralized loan obligations | 177,000,000 | 87,500,000 | ' |
Payoffs and paydowns of collateralized debt obligations | -167,154,040 | -158,956,432 | -64,413,892 |
Change in restricted cash | -12,514,227 | 23,820,781 | -45,425,223 |
Payments on financial instruments underlying linked transactions | -165,385,926 | -91,346,499 | ' |
Receipts on financial instruments underlying linked transactions | 175,181,262 | 80,645,124 | ' |
Payments on swaps and margin calls to counterparties | -75,139,934 | -61,541,697 | -15,930,000 |
Receipts on swaps and margin calls to counterparties | 80,653,523 | 61,478,418 | 15,280,000 |
Purchases of treasury stock | ' | -684,764 | -5,746,567 |
Distributions paid to noncontrolling interest | -175,559 | -217,922 | -281,390 |
Proceeds from issuance of common stock | 134,176,328 | 39,200,000 | ' |
Expenses paid on issuance of common stock | -4,788,877 | -2,520,616 | ' |
Proceeds from issuance of preferred stock | 70,287,500 | ' | ' |
Expenses paid on issuance of preferred stock | -2,632,845 | ' | ' |
Distributions paid on common stock | -21,326,517 | -8,031,029 | ' |
Distributions paid on preferred stock | -4,036,481 | ' | ' |
Payment of deferred financing costs | -5,037,806 | -2,819,710 | -731,921 |
Net cash provided by / (used in) financing activities | 208,755,305 | 320,037 | -5,149,490 |
Net increase (decrease) in cash and cash equivalents | 31,200,663 | -26,047,590 | -45,888,085 |
Cash and cash equivalents at beginning of period | 29,188,889 | 55,236,479 | 101,124,564 |
Cash and cash equivalents at end of period | 60,389,552 | 29,188,889 | 55,236,479 |
Supplemental cash flow information: | ' | ' | ' |
Cash used to pay interest | 46,717,669 | 38,566,933 | 41,559,813 |
Cash used for taxes | 462,356 | 1,159,076 | 161,185 |
Supplemental schedule of non-cash investing and financing activities: | ' | ' | ' |
Accrued and unpaid expenses on common stock offerings | 26,700 | ' | ' |
Accrued and unpaid expenses on CLO offerings | 500,000 | ' | ' |
Investment transferred to real estate held-for-sale, net | 11,540,649 | ' | 22,094,412 |
Mortgage note payable - real estate owned transferred to held-for-sale | 11,005,354 | ' | ' |
Transfer of held to maturity securities, net to available for sale, net | 34,049,310 | ' | ' |
Satisfaction of notes payable from real estate partnership | 33,438,472 | ' | ' |
Redemption of preferred investment from real estate partnership | 33,438,472 | ' | ' |
Deconsolidation of assets from real estate partnership | 18,662,363 | ' | ' |
Deconsolidation of liabilities from real estate partnership | 16,781,950 | ' | ' |
Deconsolidation of noncontrolling interest from real estate partnership | 1,880,413 | ' | ' |
Loan converted to other assets | 6,000,000 | ' | ' |
Transfer of real estate held-for-sale to first lien holder | ' | 41,440,000 | ' |
Release of mortgage note payable held-for-sale | ' | 41,440,000 | ' |
Satisfaction of participation loans | ' | 34,000,000 | ' |
Retirement of participation liabilities | ' | 34,000,000 | ' |
Loans converted to real estate owned, net | ' | ' | 83,099,540 |
Investment in real estate, net | ' | ' | 55,351,004 |
Assumption of mortgage notes payable - real estate owned | ' | ' | 55,351,004 |
Issuance of common stock for management incentive fee | ' | ' | 3,974,882 |
Acquisition of tangible asset through restructure of loan | ' | ' | 1,885,284 |
8.25% Series A cumulative redeemable preferred stock | ' | ' | ' |
Supplemental schedule of non-cash investing and financing activities: | ' | ' | ' |
Distributions accrued on preferred stock | 266,664 | ' | ' |
7.75% Series B cumulative redeemable preferred stock | ' | ' | ' |
Supplemental schedule of non-cash investing and financing activities: | ' | ' | ' |
Distributions accrued on preferred stock | 203,438 | ' | ' |
Private REIT preferred stock | ' | ' | ' |
Financing activities: | ' | ' | ' |
Distributions paid on preferred stock | ($14,500) | ($12,236) | ($14,500) |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2013 | |
Preferred stock, dividend rate (as a percent) | 12.50% |
8.25% Series A cumulative redeemable preferred stock | ' |
Preferred stock, dividend rate (as a percent) | 8.25% |
7.75% Series B cumulative redeemable preferred stock | ' |
Preferred stock, dividend rate (as a percent) | 7.75% |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business | ' |
Description of Business | ' |
Note 1—Description of Business | |
Arbor Realty Trust, Inc. (the "Company") is a Maryland corporation that was formed in June 2003 to invest in a diversified portfolio of multi-family and commercial real estate related assets, primarily consisting of bridge loans, mezzanine loans, junior participating interests in first mortgage loans, and preferred and direct equity. The Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. The Company conducts substantially all of its operations through its operating partnership, Arbor Realty Limited Partnership ("ARLP"), and ARLP's wholly-owned subsidiaries. The Company is externally managed and advised by Arbor Commercial Mortgage, LLC ("ACM"). | |
The Company is organized and conducts its operations to qualify as a real estate investment trust ("REIT") for federal income tax purposes. A REIT is generally not subject to federal income tax on its REIT—taxable income that it distributes to its stockholders, provided that it distributes at least 90% of its REIT—taxable income and meets certain other requirements. Certain assets of the Company that produce non-qualifying income are owned by its taxable REIT subsidiaries, the income of which is subject to federal and state income taxes. | |
The Company's charter provides for the issuance of up to 500 million shares of common stock, with a par value of $0.01 per share, and 100 million shares of preferred stock, with a par value of $0.01 per share. The Company was initially capitalized through the sale of 67 shares of common stock for $1,005. | |
On July 1, 2003, ACM contributed $213.1 million of structured finance assets and $169.2 million of borrowings supported by $43.9 million of equity in exchange for a commensurate equity ownership in ARLP. In addition, certain employees of ACM were transferred to ARLP. At that time, these assets, liabilities and employees represented a substantial portion of ACM's structured finance business. The Company is externally managed and advised by ACM and pays ACM a management fee in accordance with a management agreement. ACM also sources originations, provides underwriting services, and services all structured finance assets on behalf of ARLP and its wholly owned subsidiaries. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 2—Summary of Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | |
The accompanying consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, and partnerships or other joint ventures in which the Company owns a voting interest of greater than 50 percent, and Variable Interest Entities ("VIEs") of which the Company is the primary beneficiary. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Current accounting guidance requires the Company to present a) assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE, and b) liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of the primary beneficiary. As a result of this guidance, the Company has separately disclosed parenthetically the assets and liabilities of its three collateralized debt obligation ("CDO") and two collateralized loan obligation ("CLO") subsidiaries on its Consolidated Balance Sheets. Entities in which the Company owns a voting interest of 20 percent to 50 percent are accounted for primarily under the equity method. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All significant inter-company transactions and balances have been eliminated in consolidation. | |
The preparation of consolidated financial statements in conformity with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™, the authoritative reference for accounting principles generally acceptable in the United States ("GAAP"), requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Further, in connection with preparation of the Consolidated Financial Statements, the Company evaluated events subsequent to the balance sheet date of December 31, 2013 through the issuance of the Consolidated Financial Statements. | |
Certain prior year amounts have been reclassified to conform to current period presentation. During the third quarter of 2013, the Company classified a real estate investment that was part of a portfolio of multifamily properties as held-for-sale and during the fourth quarter of 2012, the Company sold a real estate investment that was part of a portfolio of hotel properties, resulting in reclassifications of property operating activity and related depreciation to discontinued operations for all prior periods presented. | |
Cash and Cash Equivalents | |
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company places its cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed Federal Deposit Insurance Corporation (FDIC) insurance coverage and the Company believes that this risk is not significant. | |
Restricted Cash | |
Restricted cash primarily represents proceeds from loan repayments on deposit with the trustees for the Company's CDOs which will be used for principal repayments, unfunded loan commitments and interest payments received from loans. All three of the CDOs have reached their replenishment dates and principal repayments are remitted quarterly to the bond holders and the Company in the month following the quarter. See Note 7—"Debt Obligations." Restricted cash is also held by the Company's CLOs which will be used to purchase underlying assets as well as by the Company's real estate owned assets due to escrow requirements. | |
Loans, Investments and Securities | |
At the time of purchase, the Company designates a security as available-for-sale, held-to-maturity, or trading depending on the Company's ability and intent to hold it to maturity. The Company does not have any securities designated as held-to-maturity or trading as of December 31, 2013. Securities available-for-sale are reported at fair value with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss, while securities held-to-maturity are reported at amortized cost. Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions. The process may include, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as the Company's ability and intent to hold the investment to maturity. Management closely monitors market conditions on which it bases such decisions. | |
The Company also assesses certain of its securities, other than those of high credit quality, to determine whether significant changes in estimated cash flows or unrealized losses on these securities, if any, reflect a decline in value that is other-than-temporary and, accordingly, should be written down to their fair value against earnings. On a quarterly basis, the Company reviews these changes in estimated cash flows, which could occur due to actual prepayment and credit loss experience, to determine if an other-than-temporary impairment is deemed to have occurred. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The Company calculates a revised yield based on the current amortized cost of the investment, including any other-than-temporary impairments recognized to date, and the revised yield is then applied prospectively to recognize interest income. | |
Securities that are purchased at a discount and that are not of high credit quality at the time of purchase are accounted for as debt securities acquired with deteriorated credit quality. Interest income on these securities is recognized using the effective interest method based on the Company's estimates of expected cash flows to be received, which include assumptions related to fluctuations in prepayment speeds and the timing and amount of credit losses, which are reviewed on an ongoing basis. | |
Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses when such loan or investment is deemed to be impaired. The Company invests in preferred equity interests that, in some cases, allow the Company to participate in a percentage of the underlying property's cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, management must determine whether such investment should be accounted for as a loan, joint venture or as real estate. To date, management has determined that all such investments are properly accounted for and reported as loans. | |
From time to time, the Company may enter into an agreement to sell a loan. These loans are considered held-for-sale and are valued at the lower of the loan's carrying amount or fair value less costs to sell. For the sale of loans, recognition occurs when ownership passes to the buyer. | |
Impaired Loans, Allowance for Loan Losses, Loss on Sale and Restructuring of Loans and Charge-offs | |
The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. The Company evaluates each loan in its portfolio on a quarterly basis. The Company's loans are individually specific and unique as it relates to product type, geographic location, and collateral type, as well as to the rights and remedies and the position in the capital structure the Company's loans and investments have in relation to the underlying collateral. The Company evaluates all of this information as well as general market trends related to specific classes of assets, collateral type and geographic locations, when determining the appropriate assumptions such as capitalization and market discount rates, as well as the borrower's operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. The Company utilizes internally developed valuation models and techniques primarily consisting of discounted cash flow and direct capitalization models in determining the fair value of the underlying collateral on an individual loan. The Company may also obtain a third party appraisal, which may value the collateral through an "as-is" or "stabilized value" methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. Included in the evaluation of the capitalization and market discount rates, the Company considers not only assumptions specific to the collateral but also considers geographical and industry trends that could impact the collateral's value. | |
If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, an allowance is created with a corresponding charge to the provision for loan losses. The allowance for each loan is maintained at a level that is believed to be adequate by management to absorb probable losses. | |
Loan terms may be modified if the Company determines that based on the individual circumstances of a loan and the underlying collateral, a modification would more likely increase the total recovery of the combined principal and interest from the loan. Any loan modification is predicated upon a goal of maximizing the collection of the loan. Typical triggers for a modification would include situations where the projected cash flow is insufficient to cover required debt service, when asset performance is lagging the initial projections, where there is a requirement for rebalancing, where there is an impending maturity of the loan, and where there is an actual loan default. Loan terms that have been modified have included, but are not limited to interest rate, maturity date and in certain cases, principal amount. Length and amounts of each modification have varied based on individual circumstances and are determined on a case by case basis. If the loan modification constitutes a concession whereas the Company does not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by the Company to be a troubled debt restructuring. If the Company receives a benefit, either monetary or strategic, and the above criteria are not met, the modification is not considered to be a troubled debt restructuring. The Company records interest on modified loans on an accrual basis to the extent that the modified loan is contractually current. | |
Loss on restructured loans is recorded when the Company has granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when the Company incurs costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, the Company records its investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. The reduction in the recorded investment is recorded as a charge to the Consolidated Statements of Operations in the period in which the loan is restructured. In addition, a gain or loss may be recorded upon the sale of a loan to a third party as a charge to the Consolidated Statements of Operations in the period in which the loan was sold. | |
Charge-offs to the allowance for loan losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which the Company grants a concession to a borrower or agrees to a discount in full or partial satisfaction of the loan; when the Company takes ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. | |
Real Estate Owned and Held-For-Sale | |
Real estate owned, shown net of accumulated depreciation and impairment charges, is comprised of real property acquired by foreclosure or through partial or full settlement of mortgage debt. The real estate acquired is recorded at the estimated fair value at the time of acquisition. | |
Costs incurred in connection with the foreclosure of the properties collateralizing the real estate loans are expensed as incurred and costs subsequently incurred to extend the life or improve the assets subsequent to foreclosure are capitalized. | |
The Company allocates the purchase price of its operating properties to land, building, tenant improvements, deferred lease costs for the origination costs of the in-place leases, intangibles for the value of the above or below market leases at fair value and to any other identified intangible assets or liabilities. The Company finalizes its purchase price allocation on these assets within one year of the acquisition date. The Company amortizes the value allocated to the in-place leases over the remaining lease term. The value allocated to the above or below market leases are amortized over the remaining lease term as an adjustment to rental income. | |
Real estate assets, including assets acquired by foreclosure or through partial or full settlement of mortgage debt, that are operated for the production of income are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. | |
The Company's properties are individually reviewed for impairment each quarter, if events or circumstances change indicating that the carrying amount of the assets may not be recoverable. The Company recognizes impairment if the undiscounted estimated cash flows to be generated by the assets are less than the carrying amount of those assets. Measurement of impairment is based upon the estimated fair value of the asset. Upon evaluating a property for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of such real estate owned in the ordinary course of business. Valuation adjustments may be necessary in the event that effective interest rates, rent-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. If future evaluations result in a diminution in the value of the property, the reduction will be recognized as an impairment charge at that time. | |
Real estate is classified as held-for-sale when management commits to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Properties classified as held-for-sale are not depreciated and the results of their operations are shown in discontinued operations. Real estate assets that are expected to be disposed of are valued, on an individual asset basis, at the lower of their carrying amount or their fair value less costs to sell. | |
The Company recognizes sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized upon closing using the full accrual method when the collectability of the sale price is reasonably assured and the Company is not obligated to perform significant activities after the sale. Profit may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. | |
Revenue Recognition | |
Interest income—Interest income is recognized on the accrual basis as it is earned from loans, investments and securities. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or "interest" method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in the opinion of management, a full recovery of all contractual principal is not probable. Income recognition is resumed when the loan becomes contractually current and performance is resumed. The Company records interest income on certain impaired loans to the extent cash is received, in which a loan loss reserve has been recorded, as the borrower continues to make interest payments. The Company recorded loan loss reserves related to these loans as it was deemed that full recovery of principal and interest was not probable. | |
Several of the Company's loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. | |
Given the transitional nature of some of the Company's real estate loans, the Company may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. The Company will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves. The Company will not recognize any interest income on loans in which the borrower has failed to make the contractual interest payment due or has not replenished the interest reserve account. Income from non-performing loans is generally recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. | |
Additionally, interest income is recorded when earned from equity participation interests, referred to as equity kickers. These equity kickers have the potential to generate additional revenues to the Company as a result of excess cash flow distributions and/or as appreciated properties are sold or refinanced. | |
Property operating income—Property operating income represents income associated with the operations of commercial real estate properties classified as real estate owned. The Company recognizes revenue for these activities when the fees are fixed or determinable, or are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. | |
Other income, net—Other income, net represents net interest income and gains and losses recorded on the Company's linked transactions, as well, as loan structuring, defeasance, and miscellaneous asset management fees associated with the Company's loans and investments portfolio. The Company recognizes these forms of income when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. | |
Investments in Equity Affiliates | |
The Company invests in joint ventures that are formed to acquire, develop and/or sell real estate assets. These joint ventures are not majority owned or controlled by the Company, or are VIEs for which the Company is not the primary beneficiary, and are not consolidated in its financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. The Company records its share of the net income and losses from the underlying properties of its equity method investments and any other-than-temporary impairment on these investments on a single line item in the Consolidated Statements of Operations as income or losses from equity affiliates. | |
Stock-Based Compensation | |
The Company has granted certain of its employees, directors, and employees of ACM, stock awards consisting of shares of the Company's common stock that vest immediately or annually over a multi-year period, subject to the recipient's continued service to the Company. The Company records stock-based compensation expense at the grant date fair value of the related stock-based award with subsequent remeasurement for any unvested shares granted to non-employees of the Company with such amounts expensed against earnings, at the grant date (for the portion that vests immediately) or ratably over the respective vesting periods. Dividends are paid on restricted stock as dividends are paid on shares of the Company's common stock whether or not they are vested. Stock-based compensation is disclosed in the Company's Consolidated Statements of Operations under "employee compensation and benefits" for employees and under "selling and administrative" expense for non-employees. | |
Income Taxes | |
The Company is organized and conducts its operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto. A REIT is generally not subject to federal income tax on taxable income that is distributed to its stockholders, provided that the Company distributes at least 90% of its taxable income and meets certain other requirements. Certain REIT income may be subject to state and local income taxes. The Company's assets or operations that would not otherwise comply with the REIT requirements are owned or conducted by the Company's taxable REIT subsidiaries, the income of which is subject to federal and state income tax. Under current federal tax law, the income and any tax on or distribution requirements attributable to certain debt extinguishment transactions realized in 2009 and 2010 have been deferred to future periods at the Company's election. | |
Current accounting guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This guidance also provides clarity on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. | |
Other Comprehensive Income / (Loss) | |
The Company divides comprehensive income or loss into net income (loss) and other comprehensive income (loss), which includes unrealized gains and losses on available-for-sale securities. In addition, to the extent the Company's derivative instruments qualify as hedges, net unrealized gains or losses are reported as a component of accumulated other comprehensive income (loss). | |
Earnings (Loss) Per Share | |
The Company presents both basic and diluted earnings (loss) per share. Basic earnings (loss) per share excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower per share amount. | |
Hedging Activities and Derivatives | |
The Company recognizes all derivatives as either assets or liabilities at fair value and these amounts are recorded in other assets or other liabilities on the Consolidated Balance Sheets. Additionally, the fair value adjustments will affect either accumulated other comprehensive income (loss) until the hedged item is recognized in earnings, or net income (loss) depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. The Company uses derivatives for hedging purposes rather than speculation. Fair values are approximated based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. | |
The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The ineffective portion of a derivative's change in fair value is recognized immediately in earnings. | |
In connection with the Company's interest rate risk management, the Company periodically hedges a portion of its interest rate risk by entering into derivative financial instrument contracts. Specifically, the Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of its expected cash receipts and its expected cash payments principally related to its investments and borrowings. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has entered into various interest rate swap agreements to hedge its exposure to interest rate risk on (i) variable rate borrowings as it relates to fixed rate loans; (ii) the difference between the CDO investor return being based on the three-month LIBOR index while the supporting assets of the CDO are based on the one-month LIBOR index; and (iii) use of LIBOR rate caps in loan agreements. | |
In the normal course of business, the Company may use a variety of derivative financial instruments to manage, or hedge, interest rate risk. The Company does not use derivatives for trading or speculative purposes. These derivative financial instruments must be effective in reducing its interest rate risk exposure in order to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income (loss) for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in net income (loss). In cases where a derivative financial instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. | |
In certain circumstances, the Company may finance the purchase of Residential Mortgage Backed Securities ("RMBS") investments through a repurchase agreement with the same counterparty, which may qualify as a linked transaction. If both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed to be linked transactions unless certain criteria are met, and the Company accounts for the purchase of such securities and the repurchase agreement on a combined basis as a forward contract derivative at fair value which is reported in other assets on the Consolidated Balance Sheets with changes in the fair value of the assets and liabilities underlying linked transactions and associated interest income and expense reported in other income on the Consolidated Statements of Operations. The analysis of transactions under these rules requires management's judgment and experience. The fair value of linked transactions reflect the value of the underlying RMBS, linked repurchase agreement borrowings and accrued interest receivable/payable on such instruments. The Company's linked transactions are not designated as hedging instruments and, as a result, the change in the fair value and net interest income from linked transactions is reported in other income on the Consolidated Statements of Operations. | |
The Company has no master netting or similar arrangements and does not offset derivatives. | |
Variable Interest Entities | |
The Company has evaluated its loans and investments, mortgage related securities, investments in equity affiliates, junior subordinated notes, CDOs and CLOs, in order to determine if they qualify as VIEs or as variable interests in VIEs. This evaluation resulted in the Company determining that its bridge loans, junior participation loans, mezzanine loans, preferred equity investments, investments in equity affiliates, junior subordinated notes, CDOs, CLOs, and investments in debt securities were potential VIEs or variable interests in VIEs. See Note 9—"Variable Interest Entities" for the Company's evaluation of the periods presented. | |
Recently Issued Accounting Pronouncements | |
In July 2013, the FASB issued updated guidance that resolves the diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new accounting guidance requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of an uncertain tax position. This guidance is effective as of the first quarter of 2014 and the Company is currently evaluating the impact it may have on its Consolidated Financial Statements. | |
In June 2013, the FASB issued updated guidance on the definition and measurement of investment companies. The guidance does not address the applicability of investment company accounting for real estate entities and thus does not have a material effect on the Company's Consolidated Financial Statements. | |
In February 2013, the FASB issued updated guidance on the disclosure of reclassification adjustments related to comprehensive income. The updated guidance requires the Company to disclose, either on the face of the financial statements or in the notes to the financial statements, the financial statement effects on earnings from items that are reclassified out of other comprehensive income, by component. This guidance was effective as of the first quarter of 2013 and its adoption did not have a material effect on the Company's Consolidated Financial Statements. | |
In December 2011, the FASB issued updated guidance on disclosure about offsetting assets and liabilities that amends U.S. GAAP to conform more to the disclosure requirements of IFRS. Under the updated guidance, an entity is required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued further guidance clarifying the scope of disclosures about offsetting assets and liabilities. The scope applies to certain derivatives (including bifurcated embedded derivatives,) repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance was effective as of the first quarter of 2013 and its adoption did not have a material effect on the Company's Consolidated Financial Statements. | |
Loans_and_Investments
Loans and Investments | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Loans and Investments | ' | ||||||||||||||||||||||
Loans and Investments | ' | ||||||||||||||||||||||
Note 3—Loans and Investments | |||||||||||||||||||||||
The following table sets forth the composition of the Company's loan and investment portfolio at December 31, 2013 and December 31, 2012: | |||||||||||||||||||||||
December 31, | Percent of | Loan | Wtd. Avg. | Wtd. Avg. | First | Last | |||||||||||||||||
2013 | Total | Count | Pay Rate(1) | Remaining | Dollar | Dollar | |||||||||||||||||
Months to | LTV | LTV | |||||||||||||||||||||
Maturity | Ratio(2) | Ratio(3) | |||||||||||||||||||||
Bridge loans | $ | 1,171,783,914 | 71 | % | 95 | 5.11 | % | 18.5 | 0 | % | 76 | % | |||||||||||
Mezzanine loans | 118,550,172 | 7 | % | 27 | 7.02 | % | 58.2 | 56 | % | 83 | % | ||||||||||||
Junior participation loans | 248,337,542 | 15 | % | 7 | 4.21 | % | 19.6 | 60 | % | 81 | % | ||||||||||||
Preferred equity investments | 121,523,673 | 7 | % | 15 | 7.2 | % | 45.5 | 58 | % | 79 | % | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
1,660,195,301 | 100 | % | 144 | 5.26 | % | 23.5 | 17 | % | 77 | % | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | (14,218,237 | ) | |||||||||||||||||||||
Allowance for loan losses | (122,277,411 | ) | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Loans and investments, net | $ | 1,523,699,653 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, | Percent of | Loan | Wtd. Avg. | Wtd. Avg. | First | Last | |||||||||||||||||
2012 | Total | Count | Pay Rate(1) | Remaining | Dollar | Dollar | |||||||||||||||||
Months to | LTV | LTV | |||||||||||||||||||||
Maturity | Ratio(2) | Ratio(3) | |||||||||||||||||||||
Bridge loans | $ | 1,006,726,838 | 67 | % | 83 | 4.87 | % | 25 | 0 | % | 75 | % | |||||||||||
Mezzanine loans | 112,843,639 | 7 | % | 24 | 4.94 | % | 62.6 | 59 | % | 88 | % | ||||||||||||
Junior participation loans | 280,662,498 | 19 | % | 9 | 3.9 | % | 29.1 | 59 | % | 79 | % | ||||||||||||
Preferred equity investments | 100,823,672 | 7 | % | 12 | 6.04 | % | 72.2 | 77 | % | 97 | % | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
1,501,056,647 | 100 | % | 128 | 4.77 | % | 31.8 | 21 | % | 80 | % | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | (13,683,281 | ) | |||||||||||||||||||||
Allowance for loan losses | (161,706,313 | ) | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Loans and investments, net | $ | 1,325,667,053 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||
"Weighted Average Pay Rate" is a weighted average, based on the unpaid principal balances of each loan in the Company's portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest "Accrual Rate" to be paid at the maturity are not included in the weighted average pay rate as shown in the table. | |||||||||||||||||||||||
-2 | |||||||||||||||||||||||
The "First Dollar LTV Ratio" is calculated by comparing the total of the Company's senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will absorb a total loss of its position. | |||||||||||||||||||||||
-3 | |||||||||||||||||||||||
The "Last Dollar LTV Ratio" is calculated by comparing the total of the carrying value of the Company's loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will initially absorb a loss. | |||||||||||||||||||||||
Bridge loans are loans to borrowers who are typically seeking short-term capital to be used in an acquisition of a property and are predominantly secured by first mortgage liens on the property. | |||||||||||||||||||||||
Mezzanine loans and junior participating interests in senior debt are loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction. Mezzanine financing may take the form of loans secured by pledges of ownership interests in entities that directly or indirectly control the real property or subordinated loans secured by second mortgage liens on the property. | |||||||||||||||||||||||
A preferred equity investment is another method of financing in which preferred equity investments in entities that directly or indirectly own real property are formed. In cases where the terms of a first mortgage prohibit additional liens on the ownership entity, investments structured as preferred equity in the entity owning the property serve as viable financing substitutes. With preferred equity investments, the Company typically becomes a member in the ownership entity. | |||||||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||||||
The Company operates in one portfolio segment, commercial mortgage loans and investments. Commercial mortgage loans and investments can potentially subject the Company to concentrations of credit risk. The Company is subject to concentration risk in that, as of December 31, 2013, the unpaid principal balance related to 28 loans with five different borrowers represented approximately 30% of total assets. At December 31, 2012, the unpaid principal balance related to 23 loans with five different borrowers represented approximately 31% of total assets. In addition, in 2013 and 2012, no single loan or investment represented 10% of the Company's total assets. In 2013, the Company generated approximately 11% of revenue from the Chetrit Group L.L.C. | |||||||||||||||||||||||
The Company measures its relative loss position for its mezzanine loans, junior participation loans, and preferred equity investments by determining the point where the Company will be exposed to losses based on its position in the capital stack as compared to the fair value of the underlying collateral. The Company determines its loss position on both a first dollar loan-to-value ("LTV") and a last dollar LTV basis. First dollar LTV is calculated by comparing the total of the Company's senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will absorb a total loss of its position. Last dollar LTV is calculated by comparing the total of the carrying value of the Company's loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will initially absorb a loss. | |||||||||||||||||||||||
The Company assigns a credit risk rating to each loan and investment. Individual ratings range from one to five, with one being the lowest risk and five being the highest. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, and funded cash reserves. Other factors such as guarantees, market strength, remaining loan term, and borrower equity are also reviewed and factored into determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. Given the Company's asset management approach, however, the risk rating process does not result in differing levels of diligence contingent upon credit rating. That is because all portfolio assets are subject to the level of scrutiny and ongoing analysis consistent with that of a 'high-risk" loan. All assets are subject to, at minimum, a thorough quarterly financial evaluation in which historical operating performance is reviewed, and forward-looking projections are created. Generally speaking, given the Company's typical loan and investment profile, a risk rating of three suggests that the Company expects the loan to make both principal and interest payments according to the contractual terms of the loan agreement, and is not considered impaired. A risk rating of four indicates the Company anticipates that the loan will require a modification of some kind. A risk rating of five indicates the Company expects the loan to underperform over its term, and that there could be loss of interest and/or principal. Ratings of 3.5 and 4.5 generally indicate loans that have characteristics of both the immediately higher and lower classifications. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as borrower strength, condition of the market of the underlying collateral, additional collateral or other credit enhancements, or loan terms, may result in a rating that is higher or lower than might be indicated by any risk rating matrix. | |||||||||||||||||||||||
As a result of the loan review process, the Company identified loans and investments that it considers higher-risk loans that had a carrying value, before loan loss reserves, of approximately $187.5 million and a weighted average LTV ratio of 93% at December 31, 2013 compared to approximately $231.1 million and a weighted average LTV ratio of 90% at December 31, 2012. | |||||||||||||||||||||||
A summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class as of December 31, 2013 and 2012 is as follows: | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Asset Class | Unpaid | Percentage | Wtd. Avg. | First Dollar | Last Dollar | ||||||||||||||||||
Principal | of Portfolio | Internal | LTV Ratio | LTV Ratio | |||||||||||||||||||
Balance | Risk Rating | ||||||||||||||||||||||
Multi-family | $ | 1,068,529,815 | 64.4 | % | 3.3 | 14 | % | 75 | % | ||||||||||||||
Office | 358,832,526 | 21.6 | % | 3.2 | 32 | % | 82 | % | |||||||||||||||
Land | 116,751,563 | 7 | % | 4 | 3 | % | 88 | % | |||||||||||||||
Hotel | 69,181,252 | 4.2 | % | 3.8 | 26 | % | 84 | % | |||||||||||||||
Commercial | 24,900,145 | 1.5 | % | 3 | 3 | % | 49 | % | |||||||||||||||
Condo | 15,250,000 | 0.9 | % | 3.7 | 41 | % | 65 | % | |||||||||||||||
Retail | 6,750,000 | 0.4 | % | 2.5 | 0 | % | 63 | % | |||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 1,660,195,301 | 100 | % | 3.3 | 17 | % | 77 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
December 31, 2012 | |||||||||||||||||||||||
Asset Class | Unpaid | Percentage | Wtd. Avg. | First Dollar | Last Dollar | ||||||||||||||||||
Principal | of Portfolio | Internal | LTV Ratio | LTV Ratio | |||||||||||||||||||
Balance | Risk Rating | ||||||||||||||||||||||
Multi-family | $ | 771,140,021 | 51.4 | % | 3.4 | 19 | % | 79 | % | ||||||||||||||
Office | 415,162,338 | 27.6 | % | 3.2 | 31 | % | 81 | % | |||||||||||||||
Land | 140,745,980 | 9.4 | % | 4.2 | 0 | % | 86 | % | |||||||||||||||
Hotel | 105,613,791 | 7 | % | 3.6 | 22 | % | 78 | % | |||||||||||||||
Commercial | 23,794,517 | 1.6 | % | 3 | 0 | % | 50 | % | |||||||||||||||
Condo | 25,250,000 | 1.7 | % | 4.2 | 58 | % | 90 | % | |||||||||||||||
Retail | 19,350,000 | 1.3 | % | 2.9 | 0 | % | 61 | % | |||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 1,501,056,647 | 100 | % | 3.4 | 21 | % | 80 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Geographic Concentration Risk | |||||||||||||||||||||||
As of December 31, 2013, 36% and 10% of the outstanding balance of the Company's loans and investments portfolio had underlying properties in New York and Texas, respectively. As of December 31, 2012, 34%, 11% and 10% of the outstanding balance of the Company's loans and investments portfolio had underlying properties in New York, California and Texas, respectively. | |||||||||||||||||||||||
Impaired Loans and Allowance for Loan Losses | |||||||||||||||||||||||
The Company performs an evaluation of the loan portfolio quarterly to assess the performance of its loans and whether a reserve for impairment should be recorded. The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. | |||||||||||||||||||||||
During the year ended December 31, 2013, the Company determined that the fair value of the underlying collateral securing five impaired loans with an aggregate carrying value of $31.5 million was less than the net carrying value of the loans, resulting in a $6.5 million provision for loan losses. In addition, during 2013, the Company recorded $2.2 million of net recoveries of previously recorded loan loss reserves resulting in a $4.3 million provision for loan losses. These recoveries were recorded in provision for loan losses on the Consolidated Statements of Operations. Of the $6.5 million of loan loss reserves recorded during the year ended December 31, 2013, $1.0 million was attributable to loans on which the Company had previously recorded reserves, while $5.5 million of reserves related to other loans in the Company's portfolio. | |||||||||||||||||||||||
During the year ended December 31, 2012 the Company determined that the fair value of the underlying collateral securing eight impaired loans with an aggregate carrying value of $94.6 million was less than the net carrying value of the loans, resulting in a $23.8 million provision for loan losses. In addition, during 2012, the Company recorded $0.9 million of net recoveries of previously recorded loan loss reserves resulting in a provision for loan losses, net of recoveries, of $22.9 million. Of the $23.8 million of loan loss reserves recorded during the year ended December 31, 2012, $18.9 million was attributable to loans on which the Company had previously recorded reserves, while $4.9 million of reserves related to other loans in the Company's portfolio. | |||||||||||||||||||||||
The Company recorded a $44.8 million provision for loan losses during the year ended December 31, 2011 when it performed an evaluation of its loan portfolio and determined that the fair value of the underlying collateral securing 11 impaired loans with an aggregate carrying value of $109.5 million were less than the net carrying value of the loans. In addition, the Company recorded $6.3 million in net recoveries of previously recorded loan loss reserves. The effect of these recoveries resulted in a provision for loan losses, net of recoveries, of $38.5 million for the year ended December 31, 2011. Loss on sale and restructuring of loans of $5.7 million during the year ended December 31, 2011 represents $4.7 million from the sale of a $30.0 million portion of a $67.0 million loan to a third party for $25.3 million as well as $1.0 million from the execution of a forbearance agreement in the first quarter of 2011 on a loan modified in the second quarter of 2011. | |||||||||||||||||||||||
There were no loans for which the collateral securing the loan was less than the carrying value of the loan for which the Company had not recorded a provision for loan loss as of December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||
At December 31, 2013, the Company had a total of 15 loans with an aggregate carrying value, before loan loss reserves, of $207.5 million for which impairment reserves have been recorded. At December 31, 2012, the Company had a total of 20 loans with an aggregate carrying value, before loan loss reserves, of $240.2 million for which impairment reserves have been recorded. Additionally, the Company has five loans with an unpaid principal balance totaling approximately $111.3 million at December 31, 2013, which mature in September 2014, that are collateralized by a land development project. The loans do not carry a pay rate of interest, but four of the loans with an unpaid principal balance totaling approximately $101.9 million entitle the Company to a weighted average accrual rate of interest of approximately 9.60%. During the fourth quarter of 2010, the Company suspended the recording of the accrual rate of interest on these loans, as these loans were impaired and management deemed the collection of this interest to be doubtful. The Company has recorded cumulative allowances for loan losses of $43.7 million related to these loans as of December 31, 2013. The loans are subject to certain risks associated with a development project including, but not limited to, availability of construction financing, increases in projected construction costs, demand for the development's outputs upon completion of the project, and litigation risk. Additionally, these loans were not classified as non-performing as the borrower is in compliance with all of the terms and conditions of the loans. | |||||||||||||||||||||||
Fiscal 2013 charge-off activity was comprised of a $23.2 million charge-off to previously recorded reserves from the write-off of several loans that had an aggregate carrying value of $23.2 million; a $19.0 million charge-off in connection with the transfer of land that was held as collateral for a $25.0 million loan to other assets at a fair value of $6.0 million; and a $1.5 million charge-off in connection with receiving proceeds of $4.4 million from the sale of a $5.9 million bridge loan. The land transferred to other assets is 20.5 acres of usable land and 2.3 acres of submerged land located on the banks of the St. John's River in downtown Jacksonville, Florida and is currently zoned for the development of up to 60 dwellings per acre. This land was held as collateral by a joint venture that the Company assumed full ownership of and the related loan was consolidated. | |||||||||||||||||||||||
Fiscal 2012 charge-off activity was comprised of a $42.8 million charge-off to previously recorded reserves from the write-off of several loans that had an aggregate carrying value of $43.4 million; and a $3.8 million charge-off to previously recorded reserves as a result of the Company receiving principal payoffs of $1.6 million on two loans with a total carrying value of $5.5 million. | |||||||||||||||||||||||
Fiscal 2011 charge-off activity was comprised of a $27.1 million charge-off to previously recorded reserves from the write-off of several loans that had an aggregate carrying value of $119.9 million. The Company also charged-off $31.7 million of loan loss reserves related to two loans with carrying values totaling approximately $77.2 million, net of reserves and assumed debt, on properties that were transferred to the Company by the owner, a creditor trust as well as purchased by the Company out of bankruptcy and recorded to real estate owned, net on the Company's Consolidated Balance Sheet in the first quarter of 2011. | |||||||||||||||||||||||
A summary of the changes in the allowance for loan losses is as follows: | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||
Allowance at beginning of the period | $ | 161,706,313 | $ | 185,381,855 | $ | 205,470,302 | |||||||||||||||||
Provision for loan losses | 6,500,000 | 23,828,224 | 44,810,000 | ||||||||||||||||||||
Charge-offs | (24,713,459 | ) | (46,585,800 | ) | (27,062,564 | ) | |||||||||||||||||
Charge-off on loan converted to other assets | (19,000,000 | ) | — | — | |||||||||||||||||||
Charge-off on loans converted to real estate owned, net | — | — | (31,710,929 | ) | |||||||||||||||||||
Recoveries of reserves | (2,215,443 | ) | (917,966 | ) | (6,124,954 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Allowance at end of the period | $ | 122,277,411 | $ | 161,706,313 | $ | 185,381,855 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
A summary of charge-offs and recoveries is as follows: | |||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2012 | |||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||
Multi-family | $ | (4,789,815 | ) | $ | (10,773,141 | ) | $ | (38,308,816 | ) | ||||||||||||||
Office | (6,252,129 | ) | (5,812,659 | ) | (7,114,677 | ) | |||||||||||||||||
Land | (19,000,000 | ) | — | — | |||||||||||||||||||
Hotel | (3,671,515 | ) | (30,000,000 | ) | (13,350,000 | ) | |||||||||||||||||
Condo | (10,000,000 | ) | — | — | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | (43,713,459 | ) | $ | (46,585,800 | ) | $ | (58,773,493 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Recoveries: | |||||||||||||||||||||||
Multi-family | $ | (1,510,949 | ) | $ | (121,898 | ) | $ | (2,243,197 | ) | ||||||||||||||
Office | (704,494 | ) | (796,068 | ) | (3,881,757 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | (2,215,443 | ) | $ | (917,966 | ) | $ | (6,124,954 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Net Charge-offs | $ | (41,498,016 | ) | $ | (45,667,834 | ) | $ | (52,648,539 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Ratio of net charge-offs during the period to average loans and investments outstanding during the period | 2.6 | % | 3 | % | 3.4 | % | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
A summary of the Company's impaired loans by asset class is as follows: | |||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Asset Class | Unpaid | Carrying | Allowance for | Average Recorded | Interest Income | ||||||||||||||||||
Principal Balance | Value(1) | Loan Losses | Investment(2) | Recognized | |||||||||||||||||||
Multi-family | $ | 65,735,773 | $ | 65,186,623 | $ | 50,786,697 | $ | 62,602,118 | $ | 2,566,914 | |||||||||||||
Office | 36,086,582 | 29,474,065 | 23,972,444 | 37,224,695 | 1,585,520 | ||||||||||||||||||
Land | 116,085,950 | 112,810,558 | 47,518,270 | 127,561,228 | — | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 217,908,305 | $ | 207,471,246 | $ | 122,277,411 | $ | 227,388,042 | $ | 4,152,434 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Asset Class | Unpaid | Carrying | Allowance for | Average Recorded | Interest Income | ||||||||||||||||||
Principal Balance | Value(1) | Loan Losses | Investment(2) | Recognized | |||||||||||||||||||
Multi-family | $ | 59,468,463 | $ | 59,277,872 | $ | 53,587,461 | $ | 63,331,880 | $ | 794,633 | |||||||||||||
Office | 38,362,808 | 30,545,156 | 28,929,067 | 41,732,535 | 1,419,615 | ||||||||||||||||||
Land | 139,036,505 | 136,716,617 | 65,518,270 | 136,185,941 | — | ||||||||||||||||||
Hotel | 3,671,507 | 3,671,507 | 3,671,515 | 18,671,507 | 596,643 | ||||||||||||||||||
Condo | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 173,920 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 250,539,283 | $ | 240,211,152 | $ | 161,706,313 | $ | 269,921,863 | $ | 2,984,811 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
-1 | |||||||||||||||||||||||
Represents the unpaid principal balance of impaired loans less unearned revenue and other holdbacks and adjustments by asset class. | |||||||||||||||||||||||
-2 | |||||||||||||||||||||||
Represents an average of the beginning and ending unpaid principal balance of each asset class. | |||||||||||||||||||||||
As of December 31, 2013, five loans with an aggregate carrying value of approximately $10.7 million, net of related loan loss reserves of $39.6 million, were classified as non-performing, of which one loan with a carrying value of $0.6 million did not have a loan loss reserve. Income from non-performing loans is recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. As of December 31, 2012, nine loans with an aggregate carrying value of approximately $14.9 million, net of related loan loss reserves of $45.1 million, were classified as non-performing, of which one loan with a carrying value of $5.0 million did not have a loan loss reserve. | |||||||||||||||||||||||
A summary of the Company's non-performing loans by asset class as of December 31, 2013 and 2012 is as follows: | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Asset Class | Carrying | Less Than | Greater | Carrying | Less Than | Greater | |||||||||||||||||
Value | 90 Days | Than | Value | 90 Days | Than | ||||||||||||||||||
Past Due | 90 Days | Past Due | 90 Days | ||||||||||||||||||||
Past Due | Past Due | ||||||||||||||||||||||
Multi-family | $ | 42,054,539 | $ | 32,000,000 | $ | 10,054,539 | $ | 10,951,549 | $ | — | $ | 10,951,549 | |||||||||||
Office | 8,277,844 | — | 8,277,844 | 10,373,229 | — | 10,373,229 | |||||||||||||||||
Land | — | — | — | 24,999,972 | — | 24,999,972 | |||||||||||||||||
Hotel | — | — | — | 3,671,507 | — | 3,671,507 | |||||||||||||||||
Condo | — | — | — | 10,000,000 | — | 10,000,000 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 50,332,383 | $ | 32,000,000 | $ | 18,332,383 | $ | 59,996,257 | $ | — | $ | 59,996,257 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
At December 31, 2013, the Company did not have any loans contractually past due 90 days or more that are still accruing interest. During the year ended December 31, 2013, the Company refinanced and/or modified four loans with an aggregate unpaid principal balance of $52.5 million, which were not considered by the Company to be troubled debt restructurings; however, two loans with a combined unpaid principal balance of $14.6 million that were extended during 2013 were considered to be trouble debt restructurings. During the year ended December 31, 2012, the Company refinanced and/or modified two loans with a combined unpaid principal balance of $57.4 million, which were considered by the Company to be troubled debt restructurings and six loans with a combined unpaid principal balance of $144.9 million, which were not considered by the Company to be troubled debt restructurings. In addition, the Company had two loans with a combined unpaid principal balance of $37.8 million that were extended during 2012 which were considered troubled debt restructurings. The Company had no unfunded commitments on the modified and extended loans which were considered troubled debt restructurings as of December 31, 2013 and 2012. | |||||||||||||||||||||||
A summary of loan modifications and extensions by asset class that the Company considered to be troubled debt restructurings during the year ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Asset Class | Number | Original | Original | Modified | Modified | ||||||||||||||||||
of Loans | Unpaid | Weighted | Unpaid | Weighted | |||||||||||||||||||
Principal | Average | Principal | Average | ||||||||||||||||||||
Balance | Rate of | Balance | Rate of | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Multi-family | 1 | $ | 6,192,666 | 5.96 | % | $ | 6,192,666 | 5.96 | % | ||||||||||||||
Office | 1 | 8,400,000 | 8.24 | % | 8,400,000 | 8.24 | % | ||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | 2 | $ | 14,592,666 | 7.27 | % | $ | 14,592,666 | 7.27 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Asset Class | Number | Original | Original | Modified | Modified | ||||||||||||||||||
of Loans | Unpaid | Weighted | Unpaid | Weighted | |||||||||||||||||||
Principal | Average | Principal | Average | ||||||||||||||||||||
Balance | Rate of | Balance | Rate of | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Multi-family | 1 | $ | 32,000,000 | 2 | % | $ | 32,000,000 | 1.13 | % | ||||||||||||||
Office | 1 | 25,361,932 | 5.32 | % | 25,332,451 | 4 | % | ||||||||||||||||
Land | 1 | 2,818,270 | — | 2,818,270 | — | ||||||||||||||||||
Hotel | 1 | 35,000,000 | 2 | % | 35,000,000 | 2 | % | ||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | 4 | $ | 95,180,202 | 2.83 | % | $ | 95,150,721 | 2.18 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
There was one loan for $32.0 million in which the Company considered the modification to be troubled debt restructuring that was subsequently considered non-performing as of December 31, 2013 and 2012 and no additional loans were considered to be impaired due to the Company's troubled debt restructuring analysis for the years ended December 31, 2013 and 2012. These loans were modified to increase the total recovery of the combined principal and interest from the loan. | |||||||||||||||||||||||
As of December 31, 2013, the Company had total interest reserves of $11.7 million on 48 loans with an aggregate unpaid principal balance of $598.6 million and had two non-performing loans with an aggregate unpaid principal balance of $4.7 million with a funded interest reserve of $0.1 million. | |||||||||||||||||||||||
Securities
Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Securities | ' | |||||||||||||||||||
Note 4—Securities | ||||||||||||||||||||
The following is a summary of the Company's securities classified as available-for-sale at December 31, 2013: | ||||||||||||||||||||
Face | Amortized | Cumulative | Cumulative | Carrying | ||||||||||||||||
Value | Cost | Unrealized | Unrealized | Value / | ||||||||||||||||
Gain | Loss | Estimated | ||||||||||||||||||
Fair Value | ||||||||||||||||||||
Residential mortgage-backed security (RMBS) | $ | 39,013,690 | $ | 34,049,310 | $ | 437,774 | $ | (6,298 | ) | $ | 34,480,786 | |||||||||
Commercial mortgage-backed security (CMBS) | 2,100,000 | 2,100,000 | — | — | 2,100,000 | |||||||||||||||
Common equity securities | — | 58,789 | 676,077 | — | 734,866 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total available-for-sale securities | $ | 41,113,690 | $ | 36,208,099 | $ | 1,113,851 | $ | (6,298 | ) | $ | 37,315,652 | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
The following is a summary of the Company's securities classified as available-for-sale at December 31, 2012: | ||||||||||||||||||||
Face | Amortized | Cumulative | Carrying | |||||||||||||||||
Value | Cost | Unrealized | Value / | |||||||||||||||||
Gain | Estimated | |||||||||||||||||||
Fair Value | ||||||||||||||||||||
Collateralized debt obligation (CDO) bond | $ | 10,000,000 | $ | 1,000,000 | $ | 100,000 | $ | 1,100,000 | ||||||||||||
Commercial mortgage-backed security (CMBS) | 2,100,000 | 2,100,000 | — | 2,100,000 | ||||||||||||||||
Common equity securities | — | 58,789 | 293,947 | 352,736 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total available-for-sale securities | $ | 12,100,000 | $ | 3,158,789 | $ | 393,947 | $ | 3,552,736 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
The following is a summary of the underlying credit rating of the Company's available-for-sale debt securities at December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Rating(1) | # | Amortized | Percent | # | Amortized | Percent | ||||||||||||||
Cost | of Total | Cost | of Total | |||||||||||||||||
AA+ | 1 | $ | 93,715 | — | — | $ | — | — | ||||||||||||
CCC | 1 | 18,417,402 | 51 | % | — | — | — | |||||||||||||
CCC- | 2 | 2,100,000 | 6 | % | 2 | 3,100,000 | 100 | % | ||||||||||||
NR | 7 | 15,538,193 | 43 | % | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
11 | $ | 36,149,310 | 100 | % | 2 | $ | 3,100,000 | 100 | % | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Based on the rating published by Standard & Poor's for each security. NR stands for "not rated." | ||||||||||||||||||||
During the fourth quarter of 2013, the Company's RMBS investments were reclassified as available-for-sale from held-to-maturity as a result of a change in intent to hold the securities to maturity due to management's decision to redeploy capital into the core lending business. Accordingly, the Company reclassified RMBS investments with a carrying amount of $34.0 million, to available-for-sale at their estimated fair value of $34.4 million, with a net unrealized gain of $0.4 million recorded in accumulated other comprehensive loss on the Company's Consolidated Balance Sheet. In the first quarter of 2014, the Company sold the majority of its RMBS investments with an aggregate carrying value of $32.9 million for approximately $33.4 million. These RMBS investments were financed with repurchase agreements totaling $24.8 million which were repaid with the proceeds. | ||||||||||||||||||||
The Company owns a CMBS investment, purchased at a premium in 2010 for $2.1 million, which is collateralized by a portfolio of hotel properties. The Company had two fully reserved mezzanine loans with a total carrying value before loan loss reserves of $30.0 million related to this portfolio that were charged off in the fourth quarter of 2012. The CMBS investment bears interest at a spread of 89 basis points over LIBOR, has a stated maturity of 6.5 years, but has an estimated life of 0.4 years based on the extended maturity of the underlying asset and a fair value of $2.1 million at December 31, 2013 and 2012. | ||||||||||||||||||||
The Company owns 2,939,465 shares of common stock of Realty Finance Corporation, formerly CBRE Realty Finance, Inc., a commercial real estate specialty finance company, which had a fair value of $0.7 million and $0.4 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
In May 2013, the Company sold a CDO bond investment that had a carrying value of $1.1 million for approximately $2.1 million and recorded a gain of approximately $1.1 million in other income in the Company's Consolidated Statements of Operations, which includes the realization of an unrealized gain of $0.1 million that was reclassified out of accumulated other comprehensive loss. | ||||||||||||||||||||
Available-for-sale securities are carried at their estimated fair value with unrealized gains and losses reported in accumulated other comprehensive loss. The Company evaluates these securities periodically to determine whether a decline in their value is other-than-temporary, though such a determination is not intended to indicate a permanent decline in value. The Company's evaluation is based on its assessment of cash flows which is supplemented by third-party research reports, internal review of the underlying assets securing the investments, levels of subordination and the ratings of the securities and the underlying collateral. The Company's estimation of cash flows expected to be generated by the securities portfolio is based upon an internal review of the underlying mortgage loans securing the investments both on an absolute basis and compared to the Company's initial underwriting for each investment and efforts are supplemented by third party research reports, third party market assessments and dialogue with market participants. Management closely monitors market conditions on which it bases such decisions. No impairment was recorded on the Company's available-for-sale securities for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||
The following is a summary of the Company's securities classified as held-to-maturity at December 31, 2012: | ||||||||||||||||||||
Face | Amortized | Carrying | Unrealized | Unrealized | Estimated | |||||||||||||||
Value | Cost | Value | Gain | Loss | Fair Value | |||||||||||||||
Residential mortgage-backed securities (RMBS) | $ | 44,431,768 | $ | 42,986,980 | $ | 42,986,980 | $ | 169,450 | $ | (3,306 | ) | $ | 43,153,124 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The following is a summary of the underlying credit ratings of the Company's RMBS and CMBS investments held-to-maturity at December 31, 2012: | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Rating(1) | # | Amortized | Percent | |||||||||||||||||
Cost | of Total | |||||||||||||||||||
AAA | 2 | $ | 407,514 | 1 | % | |||||||||||||||
AA | 1 | 167,196 | 1 | % | ||||||||||||||||
BB | 3 | 8,742,011 | 20 | % | ||||||||||||||||
D | 1 | 9,496,933 | 22 | % | ||||||||||||||||
NR | 9 | 24,173,326 | 56 | % | ||||||||||||||||
| | | | | | | | | | | ||||||||||
16 | $ | 42,986,980 | 100 | % | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
Based on the rating published by Standard & Poor's for each security. NR stands for "not rated". | ||||||||||||||||||||
During the year ended December 31, 2013, the Company purchased three RMBS investments, at a discount of $4.7 million, for $25.8 million and two RMBS investments, at par, for a total of $3.2 million and received total principal paydowns of $38.6 million on the portfolio. The RMBS investments are collateralized by portfolios of residential properties, bear interest at a weighted average fixed rate of 2.72%, have a weighted average stated maturity of 19.0 years, but have weighted average estimated lives of 6.8 years based on the estimated maturity of the RMBS investments, at December 31, 2013. Approximately $8.7 million is estimated to mature after one year through five years, and $25.8 million is estimated to mature after ten years. The RMBS investments were financed with two repurchase agreements with financial institutions which generally finance between 80% to 90% of the value of each individual investment. During year ended December 31, 2013, the Company financed $22.0 million of the RMBS investments and paid down the total debt by $30.9 million due to the principal paydowns received on the RMBS investments. The total repurchase agreement debt balance was $26.9 million at December 31, 2013. See Note 7—"Debt Obligations" for further details. As described in more detail above, during the fourth quarter of 2013, the Company's RMBS investments were reclassified as available-for-sale from held-to-maturity. | ||||||||||||||||||||
During the year ended December 31, 2012, the Company purchased eight RMBS investments, at par, for a total of $31.8 million, eight RMBS investments, at a combined premium of $0.2 million, for a total of $22.9 million, and two RMBS investments, at a combined discount of $1.5 million, for $14.4 million, and received total principal paydowns of $55.2 million on the portfolio. During the year ended December 31, 2012, the Company financed $55.5 million of the RMBS investments and paid down the total debt by $45.9 million due to the principal paydowns received on the RMBS investments. The total repurchase agreement debt balance was $35.8 million at December 31, 2012. See Note 7—"Debt Obligations" for further details. | ||||||||||||||||||||
At December 31, 2013 and 2012, the Company owned two and one RMBS investments, respectively, with deteriorated credit quality that had a total aggregate carrying value of $25.8 million and $9.5 million, respectively. These investments were sold for $26.0 million in the first quarter of 2014. | ||||||||||||||||||||
For the years ended December 31, 2013 and 2012, approximately $0.1 million of premium was amortized and approximately $0.3 million of discount was accreted from the Company's held-to-maturity investments. | ||||||||||||||||||||
Securities held-to-maturity are carried at cost, net of unamortized premiums and discounts. The Company evaluates these securities periodically to determine whether a decline in their value is other-than-temporary, though such a determination is not intended to indicate a permanent decline in value. The Company's evaluation is based on its assessment of cash flows, which is supplemented by third-party research reports, internal review of the underlying assets securing the investments, levels of subordination and the ratings of the securities and the underlying collateral. The Company's estimation of cash flows expected to be generated by the securities portfolio is based upon an internal review of the underlying mortgage loans securing the investments both on an absolute basis and compared to the Company's initial underwriting for each investment and efforts are supplemented by third party research reports, third party market assessments and dialogue with market participants. Management closely monitors market conditions on which it bases such decisions. No impairment was recorded on the Company's securities held-to-maturity for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||
The weighted average yield on the Company's CDO bond, CMBS and RMBS investments available-for-sale and held-to-maturity based on their face values was 4.29% and 4.51%, including the amortization of premium and the accretion of discount, for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
Investments_in_Equity_Affiliat
Investments in Equity Affiliates | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Investments in Equity Affiliates | ' | ||||||||||
Investments in Equity Affiliates | ' | ||||||||||
Note 5—Investments in Equity Affiliates | |||||||||||
The following is a summary of the Company's investments in equity affiliates at December 31, 2013 and 2012: | |||||||||||
Investments in Equity | Unpaid Principal | ||||||||||
Affiliates at | Balance of Loans | ||||||||||
to Equity | |||||||||||
Affiliates at | |||||||||||
Equity Affiliates | December 31, | December 31, | December 31, | ||||||||
2013 | 2012 | 2013 | |||||||||
Lightstone Value Plus REIT L.P | $ | 1,894,727 | $ | 55,988,409 | $ | — | |||||
West Shore Café | 1,690,280 | 1,821,536 | — | ||||||||
Issuers of Junior Subordinated Notes | 578,000 | 578,000 | — | ||||||||
JT Prime | 425,000 | 851,000 | — | ||||||||
930 Flushing & 80 Evergreen | 92,199 | 342,197 | 23,200,145 | ||||||||
Lexford Portfolio | 100 | 100 | 116,131,813 | ||||||||
St. John's Development | — | — | — | ||||||||
450 West 33rd Street | — | — | — | ||||||||
Ritz-Carlton Club | — | — | — | ||||||||
| | | | | | | | | | | |
Total | $ | 4,680,306 | $ | 59,581,242 | $ | 139,331,958 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company accounts for the Lightstone Value Plus REIT L.P. ("Lightstone") and 450 West 33rd Street investments under the cost method of accounting and the remaining investments under the equity method. | |||||||||||
Lightstone Value Plus REIT L.P. / JT Prime—The Company owned approximately $56.0 million of preferred and common operating partnership units of Lightstone through a consolidated entity in which the Company has a two thirds interest. In addition, the consolidated entity had debt of approximately $50.2 million, which was secured by these operating partnership units. In September 2013, the Company's portion of the preferred operating partnership units were redeemed by Lightstone for cash, at par, and the note related to the Company's portion was repaid in full. As a result, the Company received cash of $2.0 million, reflecting the Company's equity in the preferred operating partnership units redeemed. In the fourth quarter of 2013, the entity's operating agreement was amended to provide joint control to the members of the entity, and therefore, the entity was deconsolidated. The investment balance of approximately $1.9 million reflects the carrying value of the remaining common operating partnership units of Lightstone. At the time of deconsolidation, the $1.9 million carrying value of the Company's remaining interest approximated its fair value. The fair value was determined by the latest issued tender offer by Lightstone for its common stock. | |||||||||||
The Company owns a 50% non-controlling interest in an unconsolidated joint venture, JT Prime, which holds preferred and common operating partnership units of Lightstone as well as a promissory note secured by these operating partnership units. In September 2013, the Company's portion of the preferred operating partnership units were redeemed by Lightstone for cash, at par, and the note related to the Company's portion was repaid in full. As a result, the Company received cash of $0.4 million and the carrying value of the Company's investment in JT Prime was reduced to $0.4 million, reflecting the Company's remaining interest in the common operating partnership units. | |||||||||||
The preferred operating partnership units yielded 4.63% and the loan bore interest at a rate of 4.00%. During each of the years ended December 31, 2013, 2012 and 2011, the Company recorded $1.8 million, $2.7 million and $2.7 million, respectively, of dividends from the preferred and common operating partnership units which were reflected in interest income, and $1.3 million, $2.0 million and $2.0 million, respectively, of interest expense in the Company's Consolidated Statement of Operations. | |||||||||||
West Shore Café—The Company owns a 50% noncontrolling interest with a 20% preferred return subject to certain conditions in the West Shore Lake Café, a restaurant/inn lakefront property in Lake Tahoe, California. For the years ended December 31, 2013 and 2012 the Company recorded $0.1 million of losses each year from the entity against the equity investment. For 2011, the Company received distributions of $0.1 million related to the preferred return, which were recorded as a return of investment. During the third quarter of 2013, the Company also received the payoff of a $5.5 million first mortgage loan that it provided to the equity affiliate which bore interest at a yield of 10.5%. | |||||||||||
Issuers of Junior Subordinated Notes—The Company has invested a total of $0.6 million for 100% of the common shares of two affiliated entities of the Company. These entities pay dividends on both the common shares and preferred securities on a quarterly basis at variable rates based on three-month LIBOR. See Note 7—"Debt Obligations" for further details. | |||||||||||
930 Flushing & 80 Evergreen—The Company has a 12.5% preferred interest in a joint venture that owns and operates two commercial properties. The Company has a bridge loan outstanding to affiliated entities of the joint venture with a scheduled maturity of August 2017, has a variable rate of LIBOR plus 3.23%, and has an outstanding principal balance of $22.7 million at December 31, 2013. During 2012, the Company originated a $0.5 million mezzanine loan to the joint venture that matures in 2017, has a variable rate of LIBOR plus 4.23% with a LIBOR floor of 0.24% and has an outstanding principal balance of $0.5 million at December 31, 2013. Also during 2012, the Company contributed $0.2 million of capital to the entity. For the years ended December 31, 2013, 2012 and 2011, the Company recorded losses from the entity against the equity investment of $0.2 million, $0.1 million and $0.3 million, respectively. | |||||||||||
Lexford Portfolio—The Company, along with third party investors, made a $0.1 million equity investment into Lexford, a portfolio of multi-family assets. The Company's portion of this investment is a $44,000 noncontrolling interest. The Company also had a $10.5 million interest in a $25.0 million preferred equity investment in Lexford with the same third party investors that was repaid during 2013. See Note 15—"Related Party Transactions" for further details about this investment. | |||||||||||
St. John's Development—The Company owned a 50% noncontrolling interest in a joint venture that owned more than 20 acres of land in Jacksonville, Florida that was used as collateral for a $25.0 million loan originated and held by the Company with an interest rate of LIBOR plus 6.48% and a LIBOR floor of 4.50%. Ownership of the remaining 50% interest in the joint venture was transferred to Company during the fourth quarter of 2013 and as a result the land was transferred to other assets at its fair value of $6.0 million. See Note 3—"Loans and Investments" for further details. | |||||||||||
450 West 33rd Street—The Company is a participant in an investor group that owns a non-controlling interest in an office building at 450 West 33rd Street in Manhattan, New York. The investor group as a whole has a 2% retained ownership interest in the property and 50% of the property's air rights. The Company has a 29% interest in the 2% retained ownership interest. In accordance with this transaction, the joint venture members agreed to guarantee $258.1 million of the $517.0 million of new debt outstanding on the property. The guarantee expires at the earlier of maturity or prepayment of the debt and was allocated to the members in accordance with their ownership percentages. The guarantee is callable, on a pro-rata basis, if the market value of the property declines below the $258.1 million of guaranteed debt. The Company's portion of the guarantee is $76.3 million. As a result of recording an other-than-temporary impairment during 2010, the balance of the Company's investment was reduced to $0. During 2012, the Company sold a $50.0 million mezzanine loan that had been entered into in a prior year to a third party, which relieved the Company of its liability on this loan. See Note 17—"Management Agreement" for details of the Company recording $77.1 million of deferred revenue and $19.0 million of prepaid management fees during 2007 related to this investment. | |||||||||||
Ritz-Carlton Club—The Company owns a 19.41% non-controlling interest with a 10% return subject to certain conditions in the Ritz-Carlton Club, a condominium project in Lake Tahoe, California. During 2012, the Company recorded $0.8 million of losses from the entity against the equity investment reducing the balance of the Company's investment to $0 at December 31, 2012. | |||||||||||
Summarized Financial Information | |||||||||||
The condensed combined balance sheets for the Company's unconsolidated investments in equity affiliates accounted for under the equity method at December 31, 2013 and 2012 are as follows (amounts in thousands): | |||||||||||
December 31, | |||||||||||
Condensed Combined Balance Sheets | 2013 | 2012 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 13,101 | $ | 4,727 | |||||||
Real estate assets | 697,484 | 699,474 | |||||||||
Other assets | 19,618 | 22,473 | |||||||||
| | | | | | | | ||||
Total assets | $ | 730,203 | $ | 726,674 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Notes payable | $ | 734,693 | $ | 737,350 | |||||||
Other liabilities | 19,607 | 23,796 | |||||||||
| | | | | | | | ||||
Total liabilities | 754,300 | 761,146 | |||||||||
| | | | | | | | ||||
Stockholders' equity Arbor(1) | 4,102 | 3,015 | |||||||||
Stockholders' (deficit) equity | (28,199 | ) | (37,487 | ) | |||||||
| | | | | | | | ||||
Total stockholders' (deficit) equity | (24,097 | ) | (34,472 | ) | |||||||
| | | | | | | | ||||
Total liabilities and deficit | $ | 730,203 | $ | 726,674 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
-1 | |||||||||||
Combined with $0.6 million of equity relating to the issuance of junior subordinated notes, equals $4.7 million of investments in equity affiliates, at December 31, 2013. Combined with $56.0 million of cost method investments and $0.6 million of equity relating to the issuance of junior subordinated notes, equals $59.6 million of investments in equity affiliates, at December 31, 2012. | |||||||||||
The condensed combined statements of operations for the Company's unconsolidated investments in equity affiliates accounted for under the equity method for the years ended December 31, 2013, 2012 and 2011, are as follows (amounts in thousands): | |||||||||||
Year Ended | |||||||||||
Statements of Operations: | 2013 | 2012(1) | 2011 | ||||||||
Revenue: | |||||||||||
Rental income | $ | 85,551 | $ | 80,472 | $ | 10,626 | |||||
Interest income | 478 | 813 | 814 | ||||||||
Operating income | 5,709 | 8,619 | 13,299 | ||||||||
Reimbursement income | 6,653 | 5,427 | 461 | ||||||||
Other income | 6,686 | 6,436 | 3,268 | ||||||||
| | | | | | | | | | | |
Total revenues | 105,077 | 101,767 | 28,468 | ||||||||
| | | | | | | | | | | |
Expenses: | |||||||||||
Operating expenses | 58,265 | 60,257 | 16,749 | ||||||||
Interest expense | 36,061 | 36,315 | 6,944 | ||||||||
Depreciation and amortization | 23,345 | 22,283 | 2,725 | ||||||||
Other expenses | 493 | 27 | 619 | ||||||||
| | | | | | | | | | | |
Total expenses | 118,164 | 118,882 | 27,037 | ||||||||
| | | | | | | | | | | |
Net (loss) income | $ | (13,087 | ) | $ | (17,115 | ) | $ | 1,431 | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Arbor's Share of net (loss) income. | $ | (204 | ) | $ | (698 | ) | $ | (218 | )(2) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
The increase in revenues, expenses and net loss was due to the Lexford investment. See Note 15—"Related Party Transactions" for more details. | |||||||||||
-2 | |||||||||||
Combined with a $3.9 million gain on the sale of an equity method investment, equals $3.7 million of income from equity affiliates for the year ended December 31, 2011. | |||||||||||
Real_Estate_Owned_and_HeldForS
Real Estate Owned and Held-For-Sale | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Real Estate Owned and Held-For-Sale | ' | |||||||||||||||||||
Real Estate Owned and Held-For-Sale | ' | |||||||||||||||||||
Note 6—Real Estate Owned and Held-For-Sale | ||||||||||||||||||||
Real Estate Owned | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Multifamily | Hotel | Total | Multifamily | Hotel | Total | |||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||
Land | $ | 11,382,579 | $ | 10,893,651 | $ | 22,276,230 | $ | 15,651,047 | $ | 10,893,651 | $ | 26,544,698 | ||||||||
Building and intangible assets | 46,115,430 | 61,632,645 | 107,748,075 | 52,747,149 | 56,946,750 | 109,693,899 | ||||||||||||||
Less: | ||||||||||||||||||||
Accumulated depreciation and amortization | (8,598,915 | ) | (9,707,213 | ) | (18,306,128 | ) | (6,216,409 | ) | (5,873,989 | ) | (12,090,398 | ) | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Real estate owned, net | $ | 48,899,094 | $ | 62,819,083 | $ | 111,718,177 | $ | 62,181,787 | $ | 61,966,412 | $ | 124,148,199 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013, the Company's six multifamily properties ("Multifamily Portfolio") classified as real estate owned had a weighted average occupancy rate of approximately 85%. At December 31, 2012 and 2011, seven multifamily properties classified as real estate owned had a weighted average occupancy rate of approximately 85% and 79%, respectively. In the third quarter of 2013, one of the properties in this portfolio with a carrying value of $11.5 million, as well as an $11.0 million portion of a first lien mortgage, was classified as held-for-sale and its results of operations were reclassified as discontinued operations. During the fourth quarter of 2013, through site visits and discussion with market participants, the Company determined that one of the properties exhibited indicators of impairment and performed an impairment analysis. As a result of the impairment analysis based on the indicators of value from the market participants, the Company recorded an impairment loss of $1.0 million in the Consolidated Statement of Operations. | ||||||||||||||||||||
The Multifamily Portfolio had a mortgage note payable of $42.7 million and $53.8 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
For the years ended December 31, 2013 and 2012, the Company's five hotel properties in Florida ("Hotel Portfolio") classified as real estate owned had a weighted average occupancy rate of approximately 48%, respectively, a weighted average daily rate of approximately $79 and $86, respectively, and a weighted average revenue per available room of approximately $38 and $41, respectively. For the year ended December 31, 2011, six hotel properties classified as real estate owned had a weighted average occupancy rate of approximately 46%, a weighted average daily rate of approximately $88 and a weighted average revenue per available room of approximately $40. | ||||||||||||||||||||
The Company's real estate assets had restricted cash balances totaling $0.9 million and $1.0 million as of December 31, 2013 and 2012, respectively, due to escrow requirements. | ||||||||||||||||||||
Real Estate Held-For-Sale | ||||||||||||||||||||
The results of operations for properties classified as held-for-sale or that have been sold and with which the Company has no continuing involvement are reflected on the consolidated financial statements as discontinued operations and are summarized as follows: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Revenue: | ||||||||||||||||||||
Property operating income | $ | 2,297,902 | $ | 3,420,885 | $ | 5,011,311 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Property operating expense | 2,159,805 | 2,964,038 | 5,399,589 | |||||||||||||||||
Depreciation | 582,220 | 576,596 | 1,161,614 | |||||||||||||||||
Impairment loss on real estate held-for-sale | — | — | (1,450,000 | ) | ||||||||||||||||
Gain on reversal of accrued liabilities | — | 1,175,120 | — | |||||||||||||||||
Gain on sale of real estate held-for-sale | — | 3,953,455 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
(Loss) income from discontinued operations | $ | (444,123 | ) | $ | 5,008,826 | $ | (2,999,892 | ) | ||||||||||||
| | | | | | | | | | | ||||||||||
In the third quarter of 2013, a property in the Multifamily Portfolio was classified as held-for-sale due to a proposed sale transaction. The corresponding results of operations were reclassified as discontinued operations for all prior periods presented. The Multifamily Portfolio property had a mortgage note payable of $11.0 million at December 31, 2013. | ||||||||||||||||||||
During the year ended December 31, 2012, the Company sold an apartment building in Tucson, Arizona and a hotel in St. Louis, Missouri and recorded a net gain on sale of real estate held-for-sale of $3.5 million in its Consolidated Statements of Operations. Additionally, one of the properties in the Hotel Portfolio was sold to a third party and the Company recorded a gain on sale of $0.5 million, and the Company surrendered an office building in Indianapolis, Indiana to the first mortgage lender in full satisfaction of the mortgage note payable and recorded income from discontinued operations of $1.2 million related to the reversal of accrued liabilities which were not incurred. | ||||||||||||||||||||
During the year ended December 31, 2011, through site visits and discussion with market participants, the Company determined that a hotel in St. Louis, Missouri exhibited indicators of impairment and performed an impairment analysis. As a result of the impairment analysis based on the indicators of value from the market participants, the Company recorded a total impairment loss of $1.5 million in the Consolidated Statements of Operations. The Company sold the property in the first quarter of 2012 and recorded a gain on sale of real estate held-for-sale of less than $0.1 million in its Consolidated Statements of Operations. | ||||||||||||||||||||
Debt_Obligations
Debt Obligations | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Note 7—Debt Obligations | |||||||||||||||||||||||||||||
The Company utilizes various forms of short-term and long-term financing agreements to finance certain of its loans and investments. Borrowings underlying these arrangements are primarily secured by a significant amount of the Company's loans and investments. | |||||||||||||||||||||||||||||
Repurchase Agreements and Credit Facilities | |||||||||||||||||||||||||||||
The following table outlines borrowings under the Company's repurchase agreements and credit facilities as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Debt | Collateral | Weighted | Debt | Collateral | Weighted | ||||||||||||||||||||||||
Carrying | Carrying | Average | Carrying | Carrying | Average | ||||||||||||||||||||||||
Value | Value | Note Rate | Value | Value | Note Rate | ||||||||||||||||||||||||
Repurchase agreement | $ | 12,497,000 | $ | 15,536,049 | 1.75 | % | $ | 35,072,000 | $ | 43,604,281 | 1.75 | % | |||||||||||||||||
Repurchase agreement | 14,425,553 | 18,944,735 | 2 | % | 689,619 | 827,488 | 1.73 | % | |||||||||||||||||||||
$75.0 million warehousing credit facility | 33,300,540 | 45,705,813 | 2.46 | % | 50,000,000 | 70,075,000 | 3 | % | |||||||||||||||||||||
$50.0 million warehousing credit facility | 30,838,180 | 46,774,000 | 2.7 | % | — | — | — | ||||||||||||||||||||||
$40.0 million warehousing credit facility | 15,063,750 | 21,800,000 | 2.2 | % | — | — | — | ||||||||||||||||||||||
$33.0 million warehousing credit facility | 33,000,000 | 55,000,000 | 2.45 | % | — | — | — | ||||||||||||||||||||||
$17.3 million warehousing credit facility | — | — | — | 17,300,000 | 30,000,000 | 3 | % | ||||||||||||||||||||||
$12.6 million warehousing credit facility | — | — | — | 12,600,000 | 18,000,000 | 3 | % | ||||||||||||||||||||||
$20.0 million revolving credit facility | 20,000,000 | — | 8.5 | % | 15,000,000 | — | 8.5 | % | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total repurchase agreements and credit facilities | $ | 159,125,023 | $ | 203,760,597 | 3.16 | % | $ | 130,661,619 | $ | 162,506,769 | 3.25 | % | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
At December 31, 2013 and 2012, the weighted average note rate for the Company's repurchase agreements and credit facilities was 3.16% and 3.25%, respectively. There were no interest rate swaps on these facilities at December 31, 2013 and 2012. Including certain fees and costs, the weighted average note rate was 3.57% and 3.82% at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
In July 2011, the Company entered into a repurchase agreement with a financial institution to finance the purchase of RMBS investments. During the year ended December 31, 2013, the Company financed the purchase of four RMBS investments with this repurchase agreement for a total of $6.4 million and paid down the total debt by $29.0 million due to principal paydowns received on the RMBS investments. During the year ended December 31, 2012, the Company financed the purchase of 17 RMBS investments with this repurchase agreement for a total of $54.7 million and paid down the total debt by $45.7 million due to principal paydowns received on the RMBS investments. See Note 4—"Securities" for further details. The total debt balance was $12.5 million at December 31, 2013. The facility generally finances between 60% and 90% of the value of each investment, has a rolling monthly term, and bears interest at a rate of 125 to 200 basis points over LIBOR. The facility also includes a minimum net worth covenant of $100.0 million. | |||||||||||||||||||||||||||||
In June 2012, the Company entered into another repurchase agreement with a financial institution to finance the purchase of RMBS investments. During year ended December 31, 2013, the Company financed the purchase of an RMBS investment with this repurchase agreement for $15.6 million and paid down the total debt by $1.9 million due to principal paydowns received on the RMBS investments. During the year ended December 31, 2012, the Company financed the purchase of an RMBS investment for $0.8 million and paid down the debt by $0.1 million due to principal paydowns received on the RMBS investment. The total debt balance was $14.4 million at December 31, 2013. See Note 4—"Securities" for further details. The facility generally finances between 75% and 80% of the value of the investment, has a rolling monthly term, and bears interest at a rate of 180 to185 basis points over LIBOR. | |||||||||||||||||||||||||||||
In July 2011, the Company entered into a two year, $50.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties. In January 2013, the Company amended the facility, increasing the committed amount to $75.0 million. In April 2013, the facility was amended to bear interest at a rate of 225 basis points over LIBOR which was originally 275 basis points over LIBOR, require a 0.25% commitment fee, which was originally 1.0%, upon closing, matures in April 2015 with a one year extension option on outstanding advances that requires two 5% paydowns and has warehousing and non-use fees. The facility also has a maximum advance rate of 75% and contains several restrictions including full repayment of an advance if a loan becomes 60 days past due, is in default or is written down by the Company. The facility also includes various financial covenants including a minimum liquidity requirement of $20.0 million, minimum tangible net worth which includes junior subordinated notes as equity of $150.0 million, maximum total liabilities less subordinate debt of $2.0 billion, as well as certain other debt service coverage ratios and debt to equity ratios. The facility also has a compensating balance requirement of $50.0 million to be maintained by the Company and its affiliates. At December 31, 2013, the outstanding balance of this facility was $33.3 million. | |||||||||||||||||||||||||||||
In February 2013, the Company entered into a one year, $50.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties. The facility bears interest at a rate of 250 basis points over LIBOR, requires a 12.5 basis point commitment fee upon closing, had an original maturity in February 2014 that was extended to May 2014, has warehousing and non-use fees and allows for an original warehousing period of up to 24 months from the initial advance on an asset. The facility has a maximum advance rate of 75% and contains certain restrictions including partial prepayment of an advance if a loan becomes 90 days past due or in the process of foreclosure, subject to certain conditions. The facility also includes various financial covenants including a minimum liquidity requirement of $20.0 million, minimum tangible net worth which includes junior subordinated notes as equity of $150.0 million, maximum total liabilities less subordinate debt of $2.0 billion, as well as certain other debt service coverage ratios and debt to equity ratios. At December 31, 2013, the outstanding balance of this facility was $30.8 million. | |||||||||||||||||||||||||||||
In June 2013, the Company entered into a one year, $40.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties, including a $10.0 million sublimit to finance retail and office properties. The facility bears interest at a rate of 200 basis points over LIBOR, matures in June 2014, has warehousing fees and allows for an original warehousing period of up to 24 months from the initial advance on an asset. The facility also has a maximum advance rate of 70% or 75%, depending on the property type, and contains certain restrictions including prepayment of an advance if a loan becomes 60 days past due or in the process of foreclosure, subject to certain conditions. The facility also includes various financial covenants including a minimum liquidity requirement of $20.0 million, minimum tangible net worth of $150.0 million, as well as a minimum debt service coverage ratio. At December 31, 2013, the outstanding balance of this facility was $15.1 million. | |||||||||||||||||||||||||||||
In December 2013, the Company entered into a $33.0 million warehouse facility with a financial institution to finance the first mortgage loan on a multifamily property. The facility bears interest at a rate of 225 basis points over LIBOR which increases to 250 basis points over LIBOR in February 2014, requires up to a 45 basis point commitment fee and matures in November 2015 with a one year extension option. The facility also includes various financial covenants including a minimum liquidity requirement of $20.0 million, minimum tangible net worth which includes junior subordinated notes as equity of $150.0 million, maximum total liabilities less subordinate debt of $2.0 billion, as well as certain other debt service coverage ratios and debt to equity ratios. At December 31, 2013, the outstanding balance of this facility was $33.0 million. | |||||||||||||||||||||||||||||
In December 2012, the Company entered into a $17.3 million warehouse facility with a financial institution to finance the first mortgage loan on a multifamily property. The facility bore interest at a rate of 275 basis points over LIBOR or Prime at the Company's election, required a 1% commitment fee upon closing and had a maturity of December 2017. In January 2013, the facility was repaid in full as part of the issuance of a second CLO. | |||||||||||||||||||||||||||||
In June 2012, the Company entered into a $12.6 million warehouse facility with a financial institution to finance the first mortgage loan on a multifamily property. The facility bore interest at a rate of 275 basis points over LIBOR or Prime at the Company's election, required a 1% commitment fee upon closing, had a maturity of December 2013 and had a non-use fee. In January 2013, the facility was repaid in full as part of the issuance of a second CLO. | |||||||||||||||||||||||||||||
In May 2012, the Company entered into a $15.0 million committed revolving line of credit with a one year term maturing in May 2013, which is secured by a portion of the bonds originally issued by the Company's CDO entities that have been repurchased by the Company. This facility has a 1% commitment fee, a 1% non-use fee and pays interest at a fixed rate of 8% on any drawn portion of the line. The facility also includes a debt service coverage ratio requirement for the posting of collateral. In January 2013, the Company amended the facility, increasing the committed amount to $20.0 million and a fixed rate of interest of 8.5% on any drawn portion of the $20.0 million commitment. The amendment also included a one year extension option upon maturity in May 2013 and required a 1% commitment fee and a 1% non-use fee. In May 2013, the Company extended the facility to a maturity in May 2014 with a one year extension option and a 1% extension fee, as well as amended the facility to have an 8.5% non-use fee on the first $5.0 million not borrowed and a 1% non-use fee on the remaining funds not borrowed. If not extended in May 2014, there will be $0.1 million fee. At December 31, 2013, the outstanding balance of this facility was $20.0 million. | |||||||||||||||||||||||||||||
Collateralized Debt Obligations | |||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's collateralized debt obligations as of December 31, 2013: | |||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
Debt | Loans | Securities | Cash | ||||||||||||||||||||||||||
Face | Carrying | Unpaid | Carrying | Face | Carrying | Fair | Restricted | Collateral | |||||||||||||||||||||
Value | Value | Principal(1) | Value(1) | Value | Value | Value | Cash(3) | At-Risk(4) | |||||||||||||||||||||
CDO I | $ | 126,753,077 | $ | 132,399,560 | $ | 284,758,473 | $ | 237,194,618 | $ | — | $ | — | $ | — | $ | 79,986 | $ | 179,466,954 | |||||||||||
CDO II | 196,046,587 | 201,847,417 | 362,150,693 | 312,859,875 | — | — | — | 1,719,760 | 187,213,841 | ||||||||||||||||||||
CDO III | 296,754,194 | 305,376,004 | 395,783,494 | 365,236,505 | — | — | — | 23,607,813 | 240,503,823 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total CDOs | $ | 619,553,858 | $ | 639,622,981 | $ | 1,042,692,660 | $ | 915,290,998 | $ | — | $ | — | $ | — | $ | 25,407,559 | $ | 607,184,618 | |||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CDO I—Issued four investment grade tranches in January 2005 with a reinvestment period through April 2009 and a stated maturity date of February 2040. Interest is variable based on three-month LIBOR; the weighted average note rate was 3.12%. | |||||||||||||||||||||||||||||
CDO II—Issued nine investment grade tranches in January 2006 with a reinvestment period through April 2011 and a stated maturity date of April 2038. Interest is variable based on three-month LIBOR; the weighted average note rate was 3.74%. | |||||||||||||||||||||||||||||
CDO III—Issued ten investment grade tranches in December 2006 with a reinvestment period through January 2012 and a stated maturity date of January 2042. Interest is variable based on three-month LIBOR; the weighted average note rate was 0.75%. | |||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's collateralized debt obligations as of December 31, 2012: | |||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
Debt | Loans | Securities | Cash | ||||||||||||||||||||||||||
Face | Carrying | Unpaid | Carrying | Face | Carrying | Fair | Restricted | Collateral | |||||||||||||||||||||
Value | Value | Principal(1) | Value(1) | Value | Value | Value(2) | Cash(3) | At-Risk(4) | |||||||||||||||||||||
CDO I | $ | 133,994,136 | $ | 139,856,472 | $ | 299,881,599 | $ | 238,852,726 | $ | — | $ | — | $ | — | $ | 1,036,155 | $ | 207,772,049 | |||||||||||
CDO II | 231,186,301 | 237,209,429 | 395,266,909 | 345,919,525 | 10,000,000 | 1,100,000 | 1,100,000 | 470,952 | 188,271,174 | ||||||||||||||||||||
CDO III | 426,458,233 | 435,386,944 | 515,403,735 | 485,235,214 | — | — | — | 24,819,361 | 244,697,945 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total CDOs | $ | 791,638,670 | $ | 812,452,845 | $ | 1,210,552,243 | $ | 1,070,007,465 | $ | 10,000,000 | $ | 1,100,000 | $ | 1,100,000 | $ | 26,326,468 | $ | 640,741,168 | |||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||||||||
Amounts include loans to real estate assets consolidated by the Company that were reclassified to real estate owned and held-for-sale, net on the Consolidated Financial Statements. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
The security with a fair value of $1.1 million was rated a CCC- at December 31, 2012 by Standard & Poor's and was sold in May 2013. | |||||||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||||
Represents restricted cash held for principal repayments in the CDOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. | |||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||
Amounts represent the face value of collateral in default, as defined by the CDO indenture, as well as assets deemed to be "credit risk." Credit risk assets are reported by each of the CDOs and are generally defined as one that, in the CDO collateral manager's reasonable business judgment, has a significant risk of declining in credit quality or, with a passage of time, becoming a defaulted asset. | |||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the aggregate weighted average note rate for the Company's CDOs, including the cost of interest rate swaps on assets financed in these facilities, was 2.18% and 1.87%, respectively. Excluding the effect of swaps, the weighted average note rate at December 31, 2013 and 2012 was 0.83% and 0.86%, respectively. Including certain fees and costs, the weighted average note rate was 3.26% and 2.77% at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
On January 19, 2005, the Company completed its first CDO vehicle, issuing to third party investors four tranches of investment grade collateralized debt obligations ("CDO I") through a newly-formed wholly-owned subsidiary, Arbor Realty Mortgage Securities Series 2004-1, Ltd. ("the Issuer"). At inception, the Issuer held assets, consisting primarily of bridge loans, mezzanine loans and cash totaling approximately $469.0 million, which serve as collateral for CDO I. The Issuer issued investment grade notes with an initial principal amount of approximately $305.0 million and a wholly-owned subsidiary of the Company purchased the preferred equity interests of the Issuer. The four investment grade tranches were issued with floating rate coupons with an initial combined weighted average rate of three-month LIBOR plus 0.77%. The outstanding debt balance is reduced as loans are repaid. The Company incurred approximately $7.2 million of issuance costs which is amortized on a level yield basis over the average estimated life of CDO I. Investor capital is repaid quarterly from proceeds received from loan repayments held as collateral in accordance with the terms of the CDO. Proceeds distributed are recorded as a reduction of the CDO liability. Proceeds of $7.2 million and $26.4 million were distributed in 2013 and 2012, respectively. The CDO liability is also reduced as the investment grade notes are purchased by the Company—see below. | |||||||||||||||||||||||||||||
On January 11, 2006, the Company completed its second CDO vehicle, issuing to third party investors nine tranches of investment grade collateralized debt obligations ("CDO II") through a newly-formed wholly-owned subsidiary, Arbor Realty Mortgage Securities Series 2005-1, Ltd. ("the Issuer II"). At inception, the Issuer II held assets, consisting primarily of bridge loans, mezzanine loans and cash totaling approximately $475.0 million, which serve as collateral for CDO II. The Issuer II issued investment grade notes with an initial principal amount of approximately $356.0 million and a wholly-owned subsidiary of the Company purchased the preferred equity interests of the Issuer II. The nine investment grade tranches were issued with floating rate coupons with an initial combined weighted average rate of three-month LIBOR plus 0.74%. The outstanding debt balance is reduced as loans are repaid. The Company incurred approximately $6.2 million of issuance costs which is being amortized on a level yield basis over the average estimated life of CDO II. Investor capital is repaid quarterly from proceeds received from loan repayments held as collateral in accordance with the terms of the CDO. Proceeds distributed are recorded as a reduction of the CDO liability. Proceeds of $34.1 million and $46.0 million were distributed and recorded as a reduction of the CDO II liability during both 2013 and 2012, respectively. The CDO liability is also reduced as the investment grade notes are purchased by the Company—see below. | |||||||||||||||||||||||||||||
On December 14, 2006, the Company completed its third CDO vehicle, issuing to third party investors ten tranches of investment grade collateralized debt obligations ("CDO III") through a newly-formed wholly-owned subsidiary, Arbor Realty Mortgage Securities Series 2006-1, Ltd. ("the Issuer III"). At inception, the Issuer III held assets, consisting primarily of bridge loans, mezzanine loans, junior participation loans, preferred equity investments and cash totaling approximately $500.0 million, which serve as collateral for CDO III. The Issuer III issued investment grade notes with an initial principal amount of approximately $547.5 million, including a $100.0 million revolving note class that provides a revolving note facility and a wholly-owned subsidiary of the Company purchased the preferred equity interests of the Issuer III. The ten investment grade tranches were issued with floating rate coupons with an initial combined weighted average rate of three-month LIBOR plus 0.44% and the revolving note facility has a commitment fee of 0.22% per annum on the undrawn portion of the facility. The outstanding debt balance will be reduced as loans are repaid. Investor capital will be repaid quarterly from proceeds received from loan repayments held as collateral in accordance with the terms of the CDO. Proceeds distributed are recorded as a reduction of the CDO liability. Proceeds of $120.8 million and $50.7 million were distributed and recorded as a reduction of the CDO III liability during both 2013 and 2012, respectively. The CDO liability is also reduced as the investment grade notes are purchased by the Company—see below. The Company incurred approximately $9.7 million of issuance costs which is being amortized on a level yield basis over the average estimated life of CDO III. The outstanding note balance for CDO III was $257.4 million and $350.8 million at December 31, 2013 and 2012, respectively. CDO III has $100.0 million revolving note class that provides a revolving note facility. The outstanding revolving note facility for CDO III was $48.0 million and $84.6 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Proceeds from the sale of the 23 investment grade tranches issued in CDO I, CDO II and CDO III were used to repay outstanding debt under the Company's repurchase agreements and notes payable. The assets pledged as collateral were contributed from the Company's existing portfolio of assets. Each CDO has reached the end of their replenishment period. | |||||||||||||||||||||||||||||
The Company accounts for these transactions on its Consolidated Balance Sheet as financing facilities. The Company's CDOs are VIEs for which the Company is the primary beneficiary and are consolidated in the Company's Financial Statements accordingly. The investment grade tranches are treated as secured financings, and are non-recourse to the Company. | |||||||||||||||||||||||||||||
In 2010, the Company re-issued its own CDO bonds it had acquired throughout 2009 with an aggregate face amount of approximately $42.8 million as part of an exchange for the retirement of $114.1 million of its junior subordinated notes. This transaction resulted in the recording of $65.2 million of additional CDO debt, of which $42.3 million represents the portion of the Company's CDO bonds that were exchanged and $22.9 million represents the estimated interest due on the reissued bonds through their maturity, of which $20.1 million remains at December 31, 2013. | |||||||||||||||||||||||||||||
The following table sets forth the face amount and gain on extinguishment of the Company's CDO bonds repurchased in the following periods by bond class: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Class: | Face | Gain | Face | Gain | Face | Gain | |||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||
B | $ | — | $ | — | $ | 13,000,000 | $ | 4,615,000 | $ | 5,654,540 | $ | 2,086,799 | |||||||||||||||||
C | — | — | 3,329,509 | 1,200,182 | 7,005,291 | 3,502,815 | |||||||||||||||||||||||
D | — | — | 13,350,000 | 5,819,066 | 2,433,912 | 1,428,950 | |||||||||||||||||||||||
E | — | — | 13,765,276 | 6,445,033 | 2,291,855 | 1,403,761 | |||||||||||||||||||||||
F | — | — | 9,708,556 | 5,048,417 | 3,918,343 | 2,455,892 | |||||||||||||||||||||||
G | — | — | 8,672,039 | 4,777,138 | — | — | |||||||||||||||||||||||
H | 9,935,088 | 4,930,772 | 4,403,771 | 2,554,187 | — | — | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total | $ | 9,935,088 | $ | 4,930,772 | $ | 66,229,151 | $ | 30,459,023 | $ | 21,303,941 | $ | 10,878,217 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Collateralized Loan Obligations | |||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's CLOs as of December 31, 2013: | |||||||||||||||||||||||||||||
Debt | Collateral | ||||||||||||||||||||||||||||
Loans | Cash | ||||||||||||||||||||||||||||
Face Value | Carrying | Unpaid | Carrying | Restricted | Collateral | ||||||||||||||||||||||||
Value | Principal | Value | Cash(1) | At-Risk(2) | |||||||||||||||||||||||||
CLO I | $ | 87,500,000 | $ | 87,500,000 | $ | 114,414,154 | $ | 113,940,857 | $ | 10,672,496 | $ | — | |||||||||||||||||
CLO II | 177,000,000 | 177,000,000 | 255,016,564 | 253,989,391 | 4,621,675 | — | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total CLOs | $ | 264,500,000 | $ | 264,500,000 | $ | 369,430,718 | $ | 367,930,248 | $ | 15,294,171 | $ | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
CLO I—Issued two investment grade tranches in September 2012 with a replacement period through September 2014 and a stated maturity date of October 2022. Interest is variable based on three-month LIBOR; the weighted average note rate was 3.61%. | |||||||||||||||||||||||||||||
CLO II—Issued two investment grade tranches in January 2013 with a replacement period through January 2015 and a stated maturity date of February 2023. Interest is variable based on three-month LIBOR; the weighted average note rate was 2.56%. | |||||||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||
Represents restricted cash held for principal repayments in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
Amounts represent the face value of collateral in default, as defined by the CLO indenture, as well as assets deemed to be "credit risk." Credit risk assets are reported by each of the CLOs and are generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of declining in credit quality or, with a passage of time, becoming a defaulted asset. | |||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's CLOs as of December 31, 2012: | |||||||||||||||||||||||||||||
Debt | Collateral | ||||||||||||||||||||||||||||
Loans | Cash | ||||||||||||||||||||||||||||
Face Value | Carrying | Unpaid | Carrying | Restricted | |||||||||||||||||||||||||
Value | Principal | Value | Cash | ||||||||||||||||||||||||||
CLO I | $ | 87,500,000 | $ | 87,500,000 | $ | 125,086,650 | $ | 124,525,103 | $ | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
In September 2012, the Company completed its first collateralized loan obligation, or CLO, issuing to third party investors two tranches of investment grade collateralized loan obligations through newly-formed wholly-owned subsidiaries, Arbor Realty Collateralized Loan Obligation 2012-1, Ltd. and Arbor Realty Collateralized Loan Obligation 2012-1, LLC. Initially, the notes are secured by a portfolio of loan obligations with a face value of approximately $125.1 million, consisting primarily of bridge loans and a senior participation interest in a first mortgage loan that were contributed from the Company's existing loan portfolio. The financing has a two-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. The aggregate principal amounts of the two classes of notes were $75.0 million of Class A senior secured floating rate notes and $12.5 million of Class B secured floating rate notes. The Company retained a residual interest in the portfolio with a notional amount of $37.6 million. The notes have an initial weighted average interest rate of approximately 3.39% plus one-month LIBOR and interest payments on the notes are payable monthly, beginning on November 15, 2012, to and including October 15, 2022, the stated maturity date of the notes. The Company incurred approximately $2.4 million of issuance costs which is being amortized on a level yield basis over the average estimated life of the CLO. Including certain fees and costs, the initial weighted average note rate was 4.35%. The Company accounts for this transaction on its balance sheet as a financing facility. | |||||||||||||||||||||||||||||
In January 2013, the Company completed its second CLO, issuing to third party investors two tranches of investment grade collateralized loan obligations through newly-formed wholly-owned subsidiaries, Arbor Realty Collateralized Loan Obligation 2013-1, Ltd. and Arbor Realty Collateralized Loan Obligation 2013-1, LLC. As of the CLO closing date, the notes are secured by a portfolio of loan obligations with a face value of approximately $210.0 million, consisting primarily of bridge loans and a senior participation interest in a first mortgage loan that were contributed from the Company's existing loan portfolio. The financing has a two-year replacement period that allows the principal proceeds and sale proceeds (if any) of the loan obligations to be reinvested in qualifying replacement loan obligations, subject to the satisfaction of certain conditions set forth in the indenture. Thereafter, the outstanding debt balance will be reduced as loans are repaid. Initially, the proceeds of the issuance of the securities also included $50.0 million for the purpose of acquiring additional loan obligations for a period of up to 90 days from the closing date of the CLO. Subsequently, the issuer owns loan obligations with a face value of approximately $260.0 million. The aggregate principal amounts of the two classes of notes were $156.0 million of Class A senior secured floating rate notes and $21.0 million of Class B secured floating rate notes. The Company retained a residual interest in the portfolio with a notional amount of approximately $83.0 million. The notes have an initial weighted average interest rate of approximately 2.36% plus one-month LIBOR and interest payments on the notes are payable monthly, beginning on March 15, 2013, to and including February 15, 2023, the stated maturity date of the notes. The Company incurred approximately $3.2 million of issuance costs which is being amortized on a level yield basis over the average estimated life of the CLO. Including certain fees and costs, the initial weighted average note rate was 3.00%. The Company accounts for this transaction on its balance sheet as a financing facility. | |||||||||||||||||||||||||||||
The Company's CLO vehicles are VIEs for which the Company is the primary beneficiary and are consolidated in the Company's Financial Statements. The two investment grade tranches are treated as a secured financing, and are non-recourse to the Company. | |||||||||||||||||||||||||||||
At December 31, 2013 and 2012, the aggregate weighted average note rate for the Company's collateralized loan obligations was 2.91% and 3.65%, respectively. Including certain fees and costs, the weighted average note rate was 3.49% and 4.33% at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Junior Subordinated Notes | |||||||||||||||||||||||||||||
The carrying value of borrowings under the Company's junior subordinated notes was $159.3 million and $158.8 million at December 31, 2013 and 2012, respectively, which is net of a deferred amount of $16.6 million and $17.1 million, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a fixed or floating rate of interest based on three-month LIBOR and, absent the occurrence of special events, were not redeemable for the first two years. The current weighted average note rate was 3.01% and 3.08% at December 31, 2013 and 2012, respectively, however, based upon the accounting treatment for the restructuring mentioned below, the effective rate was 3.06% and 3.12%, at December 31, 2013 and 2012, respectively. Including certain fees and costs, the weighted average note rate was 3.18% and 3.35%, respectively. The impact of these variable interest entities with respect to consolidation is discussed in Note 9—"Variable Interest Entities." | |||||||||||||||||||||||||||||
In 2009, the Company retired $265.8 million of its then outstanding trust preferred securities, primarily consisting of $258.4 million of junior subordinated notes issued to third party investors and $7.4 million of common equity issued to the Company in exchange for $289.4 million of newly issued unsecured junior subordinated notes, representing 112% of the original face amount. The notes bore a fixed interest rate of 0.50% per annum until March 31, 2012 or April 30, 2012 (the "Modification Period"). Thereafter, interest is to be paid at the rates set forth in the existing trust agreements until maturity, equal to three month LIBOR plus a weighted average spread of 2.77% for the years ended 2013, 2012 and 2011. The 12% increase to the face amount due upon maturity, which had a balance of $16.6 million at December 31, 2013, is being amortized into interest expense over the life of the notes. The Company also paid transaction fees of approximately $1.3 million to the issuers of the junior subordinated notes related to this restructuring which is being amortized over the life of the notes. The terms of the Modification Period expired in April 2012. | |||||||||||||||||||||||||||||
Notes Payable | |||||||||||||||||||||||||||||
The following table outlines borrowings under the Company's notes payable as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Debt | Collateral | Debt | Collateral | ||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||
Note payable relating to investment in equity affiliate, expiration July 2016, interest is fixed, the weighted average note rate was 4.06% | $ | — | $ | — | $ | 50,157,708 | $ | 55,988,411 | |||||||||||||||||||||
Junior loan participation, secured by the Company's interest in a first mortgage loan with a principal balance of $1.3 million, participation interest was based on a portion of the interest received from the loan which has a fixed rate of 9.57% | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | |||||||||||||||||||||||||
Junior loan participation, maturity of March 2014, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 15.00% | 450,000 | 450,000 | — | — | |||||||||||||||||||||||||
Junior loan participation, maturity of October 2018, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 13.00% | 750,000 | 750,000 | — | — | |||||||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
Total notes payable | $ | 2,500,000 | $ | 2,500,000 | $ | 51,457,708 | $ | 57,288,411 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
At December 31, 2013 and 2012, the aggregate weighted average note rate for the Company's notes payable was 4.26% and 3.91%, respectively. There were no interest rate swaps on the notes payable at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
In September 2013, the $50.2 million outstanding balance of a note payable related to the Company's interest in Lightstone was paid off upon the redemption of the preferred operating partnership units in Lightstone. The note payable originated in 2008 after the Company received cash related to a transaction with Lightstone to exchange the Company's profits interest in Prime Outlets Member, LLC ("POM") for operating partnership units in Lightstone. In addition, during the fourth quarter of 2013, the Company deconsolidated the entity that held the remaining portion of the note payable. See Note 5—"Investments in equity affiliates" for further details. | |||||||||||||||||||||||||||||
In October 2013, the Company entered into a non-recourse junior loan participation for approximately $0.8 million on a $3.0 million mezzanine loan. In September 2013, the Company entered into a non-recourse junior loan participation for approximately $0.5 million on another $3.0 million mezzanine loan. Interest expense is based on the portion of the interest received from the loan that is paid to the junior participant. The Company's obligation to pay interest on the participation is based on the performance of the related loan. | |||||||||||||||||||||||||||||
Mortgage Note Payable—Real Estate Owned and Held-For-Sale | |||||||||||||||||||||||||||||
During 2011, the Company assumed a $55.4 million interest-only first lien mortgage in connection with the acquisition of real property pursuant to bankruptcy proceedings for an entity in which the Company had a $29.8 million loan secured by the Multifamily Portfolio. The mortgage bears interest at a variable rate of one-month LIBOR plus 1.23% and has a maturity date of March 2014 with a one year and three month extension option, subject to certain conditions. In 2011, one of the properties in the Multifamily Portfolio was sold to a third party for $1.6 million and the proceeds were used to pay down the first lien mortgage to a balance of $53.8 million. In September 2013, one of the properties in the Multifamily Portfolio was classified as held-for-sale and thus $11.0 million of the first lien mortgage was classified as held-for-sale and the balance of $42.7 million was classified as real estate owned at December 31, 2013. | |||||||||||||||||||||||||||||
Debt Covenants | |||||||||||||||||||||||||||||
The Company's debt facilities contain various financial covenants and restrictions, including minimum net worth, minimum liquidity and maximum debt balance requirements, as well as certain other debt service coverage ratios and debt to equity ratios. The Company was in compliance with all financial covenants and restrictions at December 31, 2013. | |||||||||||||||||||||||||||||
The Company's CDO and CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for the Company to receive such payments. If the Company fails these covenants in any of its CDOs or CLOs, all cash flows from the applicable CDO or CLO would be diverted to repay principal and interest on the outstanding CDO or CLO bonds and the Company would not receive any residual payments until that CDO or CLO regained compliance with such tests. The Company's CDOs and CLOs were in compliance with all such covenants as of December 31, 2013, as well as on the most recent determination date in January 2014. In the event of a breach of the CDO or CLO covenants that could not be cured in the near-term, the Company would be required to fund its non-CDO or non-CLO expenses, including management fees and employee costs, distributions required to maintain REIT status, debt costs, and other expenses with (i) cash on hand, (ii) income from any CDO or CLO not in breach of a covenant test, (iii) income from real property and loan assets, (iv) sale of assets, or (v) accessing the equity or debt capital markets, if available. The Company has the right to cure covenant breaches which would resume normal residual payments to it by purchasing non-performing loans out of the CDOs or CLOs. However, the Company may not have sufficient liquidity available to do so at such time. | |||||||||||||||||||||||||||||
The chart below is a summary of the Company's CDO and CLO compliance tests as of the most recent determination dates in January 2014: | |||||||||||||||||||||||||||||
Cash Flow Triggers | CDO I | CDO II | CDO III | CLO I | CLO II | ||||||||||||||||||||||||
Overcollateralization(1) | |||||||||||||||||||||||||||||
Current | 167.15 | % | 137.87 | % | 107.8 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Limit | 145 | % | 127.3 | % | 105.6 | % | 137.86 | % | 144.25 | % | |||||||||||||||||||
Pass / Fail | Pass | Pass | Pass | Pass | Pass | ||||||||||||||||||||||||
Interest Coverage(2) | |||||||||||||||||||||||||||||
Current | 547.23 | % | 430.96 | % | 779.18 | % | 289.34 | % | 325.74 | % | |||||||||||||||||||
Limit | 160 | % | 147.3 | % | 105.6 | % | 120 | % | 120 | % | |||||||||||||||||||
Pass / Fail | Pass | Pass | Pass | Pass | Pass | ||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||
The overcollateralization ratio divides the total principal balance of all collateral in the CDO and CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset's principal balance for purposes of the overcollateralization test is the lesser of the asset's market value or the principal balance of the defaulted asset multiplied by the asset's recovery rate which is determined by the rating agencies. Rating downgrades of CDO and CLO collateral will generally not have a direct impact on the principal balance of a CDO and CLO asset for purposes of calculating the CDO and CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CDO and CLO vehicle. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by the Company. | |||||||||||||||||||||||||||||
The chart below is a summary of the Company's CDO and CLO overcollateralization ratios as of the following determination dates: | |||||||||||||||||||||||||||||
Determination Date | CDO I | CDO II | CDO III | CLO I | CLO II | ||||||||||||||||||||||||
Jan-14 | 167.15 | % | 137.87 | % | 107.8 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Oct-13 | 166.88 | % | 133.77 | % | 106.64 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Jul-13 | 176.69 | % | 139.1 | % | 106.61 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Apr-13 | 174.76 | % | 138.97 | % | 106.56 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Jan-13 | 172.73 | % | 138.89 | % | 105.9 | % | 142.96 | % | — | ||||||||||||||||||||
The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CDOs and CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the Junior Subordinated Indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The Junior Subordinated Indentures are also cross-defaulted with each other. | |||||||||||||||||||||||||||||
Noncontrolling_Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2013 | |
Noncontrolling Interest | ' |
Noncontrolling Interest | ' |
Note 8—Noncontrolling Interest | |
Noncontrolling interest of $1.9 million as of December 31, 2012 represents a third party's one third interest in the equity of a consolidated subsidiary that owns an investment that carried a note payable related to the exchange of POM profits interest transaction discussed in Note 7—"Debt Obligations." In September 2013, a portion of the investment was redeemed by Lightstone and the related note payable was repaid. In the fourth quarter of 2013, the entity's operating agreement was amended to provide joint control to the members of the entity, and therefore, the entity was deconsolidated. Upon completion of this transaction, the Company deconsolidated the entity and noncontrolling interest was reduced to zero. See Note 5—"Investments in equity affiliates" for further details. For the years ended December 31, 2013 and 2012, the Company recorded income of $0.1 million and $0.2 million, respectively, as well as distributions of $2.1 million which included a distribution of $0.9 million related to the transaction discussed above, and $0.2 million, respectively, attributable to the noncontrolling interest. | |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Variable Interest Entities | ' | |||||||
Note 9—Variable Interest Entities | ||||||||
The Company has evaluated its loans and investments, mortgage related securities, investments in equity affiliates, junior subordinated notes, CDOs and CLOs, in order to determine if they qualify as VIEs or as variable interests in VIEs. This evaluation resulted in the Company determining that its bridge loans, junior participation loans, mezzanine loans, preferred equity investments, investments in equity affiliates, junior subordinated notes, CDOs, CLOs and investments in mortgage related securities are potential VIEs. | ||||||||
The Company's involvement with VIEs primarily affects its financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with its derivative instruments. | ||||||||
Consolidated VIEs | ||||||||
The Company consolidates its three CDO and two CLO subsidiaries, which qualify as VIEs, of which the Company is the primary beneficiary. These CDOs and CLOs invest in real estate and real estate-related securities and are financed by the issuance of CDO and CLO debt securities. The Company, or one of its affiliates, is named collateral manager, servicer, and special servicer for all CDO and CLO collateral assets which the Company believes gives it the power to direct the most significant economic activities of the entity. The Company also has exposure to CDO and CLO losses to the extent of its equity interests and also has rights to waterfall payments in excess of required payments to CDO and CLO bond investors. As a result of consolidation, equity interests in these CDOs and CLOs have been eliminated, and the Consolidated Balance Sheet reflects both the assets held and debt issued by the CDOs and CLOs to third parties. The Company's operating results and cash flows include the gross amounts related to CDO and CLO assets and liabilities as opposed to the Company's net economic interests in the CDO and CLO entities. | ||||||||
Assets held by the CDOs and CLOs are restricted and can be used only to settle obligations of the CDOs and CLOs. The liabilities of the CDOs and CLOs are non-recourse to the Company and can only be satisfied from each CDOs and CLOs respective asset pool. Assets and liabilities related to the CDOs and CLOs are disclosed parenthetically, in the aggregate, in the Company's Consolidated Balance Sheets. See Note 7—"Debt Obligations" for further details. | ||||||||
The Company is not obligated to provide, has not provided, and does not intend to provide financial support to any of the consolidated CDOs and CLOs. | ||||||||
Unconsolidated VIEs | ||||||||
The Company determined that it is not the primary beneficiary of 40 VIEs in which it has a variable interest as of December 31, 2013 because it does not have the ability to direct the activities of the VIEs that most significantly impact each entity's economic performance. VIEs, of which the Company is not the primary beneficiary, have an aggregate carrying amount of $645.0 million and exposure to real estate debt of approximately $3.7 billion at December 31, 2013. | ||||||||
The following is a summary of the Company's variable interests in identified VIEs, of which the Company is not the primary beneficiary, as of December 31, 2013: | ||||||||
Type | Carrying | Maximum | ||||||
Amount(1) | Exposure to | |||||||
Loss(2) | ||||||||
Loans | $ | 417,998,101 | $ | 417,998,101 | ||||
Loans and equity investments | 115,253,740 | 115,253,740 | ||||||
RMBS | 109,041,129 | 109,041,129 | ||||||
CMBS | 2,100,000 | 2,100,000 | ||||||
Junior subordinated notes(3) | 578,000 | 578,000 | ||||||
| | | | | | | | |
Total | $ | 644,970,970 | $ | 644,970,970 | ||||
| | | | | | | | |
| | | | | | | | |
-1 | ||||||||
Represents the carrying amount of loans and investments before reserves. At December 31, 2013, $185.0 million of loans to VIEs had corresponding loan loss reserves of approximately $110.9 million and $44.3 million of loans to VIEs were related to loans classified as non-performing. See Note 3—"Loans and Investments" for further details. | ||||||||
-2 | ||||||||
The Company's maximum exposure to loss as of December 31, 2013 would not exceed the carrying amount of its investment. | ||||||||
-3 | ||||||||
These entities that issued the junior subordinated notes are VIEs. It is not appropriate to consolidate these entities as equity interests are variable interests only to the extent that the investment is considered to be at risk. Since the Company's investments were funded by the entities that issued the junior subordinated notes, it is not considered to be at risk. | ||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||||
Note 10—Derivative Financial Instruments | ||||||||||||||||||||||||||||||||||||||||
The following is a summary of the derivative financial instruments held by the Company as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
Notional Value | Fair Value | |||||||||||||||||||||||||||||||||||||||
Designation\Cash Flow | Derivative | Count | December 31, | Count | December 31, | Expiration | Balance | December 31, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | Date | Sheet | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Location | ||||||||||||||||||||||||||||||||||||||||
Non-Qualifying | Basis Swaps | 1 | $ | 11,600 | 8 | $ | 603,524 | 2015 | Other Assets | $ | 5 | $ | 128 | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Non-Qualifying | LIBOR Caps | — | $ | — | 1 | $ | 6,000 | — | Other Assets | $ | — | $ | — | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Qualifying | LIBOR Cap | — | $ | — | 1 | $ | 73,301 | — | Other Assets | $ | — | $ | — | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Qualifying | Interest Rate Swaps | 14 | $ | 297,532 | 14 | $ | 312,227 | 2014 - 2017 | Other Liabilities | $ | (24,794 | ) | $ | (37,755 | ) | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Non-Qualifying | Forward Contracts | 8 | $ | — | 12 | $ | — | 2016 - 2036 | Other Assets | $ | 6,397 | $ | 10,800 | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
The Non-Qualifying Basis Swaps Hedges are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet hedge accounting requirements. The Company is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in benchmark interest rates and uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. These interest rate swaps designated as fair value hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. During the year ended December 31, 2013, seven basis swaps matured with a combined notional value of approximately $499.4 million and the notional value of one basis swap decreased by approximately $92.6 million pursuant to the contractual terms of the respective swap agreement. The Non-Qualifying LIBOR Cap Hedge with a notional value of approximately $6.0 million at December 31, 2012 also matured during the year ended December 31, 2013. The Company entered into these hedges in the fourth quarter of 2010 and the first quarter of 2011 due to loan agreements which required LIBOR Caps of 1% to 2%. During the year ended December 31, 2012, a basis swap matured with a notional value of approximately $110.1 million and the notional value of four basis swaps decreased by approximately $140.4 million pursuant to the contractual terms of the respective swap agreements. For the years ended December 31, 2013, 2012 and 2011, the change in fair value of the Non-Qualifying Swaps was $(0.1) million, $(1.4) million and $0.2 million, respectively, and was recorded in interest expense on the Consolidated Statements of Operations. | ||||||||||||||||||||||||||||||||||||||||
The change in the fair value of Qualifying Interest Rate Swap Cash Flow Hedges was recorded in accumulated other comprehensive loss on the Consolidated Balance Sheets. These interest rate swaps are used to hedge the variable cash flows associated with existing variable-rate debt, and amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the year ended December 31, 2013, the notional value on an interest rate swap decreased by approximately $14.5 million pursuant to the contractual terms of the respective swap agreement. The Qualifying LIBOR Cap Hedge with a notional value of approximately $73.3 million at December 31, 2012 also matured during the year ended December 31, 2013. During the year ended December 31, 2012, ten interest rate swaps matured with a combined notional value of approximately $196.4 million and the notional value on an interest rate swap decreased by approximately $6.4 million pursuant to the contractual terms of the respective swap agreement. As of December 31, 2013, the Company expects to reclassify approximately $(12.3) million of other comprehensive loss from Qualifying Cash Flow Hedges to interest expense over the next twelve months assuming interest rates on that date are held constant. Gains and losses on terminated swaps are being deferred and recognized in earnings over the original life of the hedged item. These swap agreements must be effective in reducing the variability of cash flows of the hedged items in order to qualify for the aforementioned hedge accounting treatment. As of December 31, 2013 and 2012, the Company has a net deferred loss of $1.6 million and $2.2 million, respectively, in accumulated other comprehensive loss. The Company recorded $0.9 million, $0.9 million and $1.8 million as additional interest expense related to the amortization of the loss for the years ended December 31, 2013, 2012 and 2011, respectively, and $0.2 million as a reduction to interest expense related to the accretion of the net gains for each of the years ended December 31, 2013, 2012 and 2011. The Company expects to record approximately $0.5 million of net deferred loss to interest expense over the next twelve months. | ||||||||||||||||||||||||||||||||||||||||
The fair value of Non-Qualifying Forward Contracts was $6.4 million as of December 31, 2013 and was recorded in other assets on the Consolidated Balance Sheets and consisted of $66.0 million of RMBS investments, which is net of $1.5 million of net losses in fair value, and $59.6 million of repurchase financing. The fair value of Non-Qualifying Forward Contracts was $10.8 million as of December 31, 2012 and was recorded in other assets on the Consolidated Balance Sheets and consisted of $75.3 million of RMBS investments, net of $64.6 million of repurchase financing. During the year ended December 31, 2013, the Company purchased nine RMBS investments for $85.3 million and financed the purchases with repurchase agreements totaling $73.7 million, which are accounted for as linked transactions and considered forward contracts. The repurchase agreements generally finance 80%—90% of the purchase and bear interest at a rate of 125 to 175 basis points over LIBOR. The Company received total principal paydowns on the RMBS of $31.9 million and paid down the associated repurchase agreement by $27.7 million. During the year ended December 31, 2013, the Company sold 11 RMBS investments, which were accounted for as linked transactions, with an aggregate carrying value of $61.0 million for approximately $61.4 million and recorded a net gain of $0.4 million related to the settlement of these linked transactions. The 11 RMBS investments were financed with repurchase agreements totaling $52.4 million which were repaid with the proceeds. During the year ended December 31, 2012, the Company purchased 12 RMBS investments for $84.6 million and financed 80%—90% of the purchases with repurchase agreements totaling $71.3 million that bear interest at a rate of 125 to 175 basis points over LIBOR and that are accounted for as linked transactions and considered forward contracts. The Company received total principal paydowns on the RMBS of $9.3 million and paid down the associated repurchase agreement by $6.7 million. For the year ended December 31, 2013, $1.9 million of net interest income and a $1.7 million decrease in fair value was recorded to other income on the Consolidated Statements of Operations. For the year ended December 31, 2012, $1.1 million of net interest income and a $0.2 million increase in fair value was recorded to other income in the Consolidated Statements of Operations. The RMBS investments bear interest at a weighted average fixed rate of 3.34%, have a weighted average stated maturity of 23.1 years, but have weighted average estimated lives of 9.0 years based on the estimated maturities of the RMBS investments. In the first quarter of 2014, the Company sold the majority of its RMBS investments accounted for as linked transactions with an aggregate carrying value of $48.3 million for approximately $48.5 million. These RMBS investments were financed with repurchase agreements totaling $36.0 million which were repaid with the proceeds. | ||||||||||||||||||||||||||||||||||||||||
The following table presents the effect of the Company's derivative financial instruments on the Statements of Operations as of December 31, 2013, 2012 and 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
Amount of Loss | Amount of Loss | Amount of (Loss) | Amount of (Loss) | |||||||||||||||||||||||||||||||||||||
Recognized | Reclassified from | Gain Recognized | Gain Recognized | |||||||||||||||||||||||||||||||||||||
in Other | Accumulated Other | in Interest Expense | in Other Income | |||||||||||||||||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss into | (Ineffective Portion) | For the Year Ended | |||||||||||||||||||||||||||||||||||||
(Effective Portion) | Interest Expense | For the Year Ended | December 31, | |||||||||||||||||||||||||||||||||||||
For the Year Ended | (Effective Portion) | December 31, | ||||||||||||||||||||||||||||||||||||||
December 31, | For the Year Ended | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
Designation\Cash Flow | Derivative | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Non-Qualifying | Basis Swaps / Caps | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (12 | ) | $ | (22 | ) | $ | 827 | $ | — | $ | — | $ | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Qualifying | Interest Rate Swaps / Cap | $ | 520 | $ | 7,699 | $ | 20,698 | $ | (14,131 | ) | $ | (16,565 | ) | $ | (27,164 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Qualifying | Forward Contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1,676 | ) | $ | 167 | $ | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as qualifying hedges as of December 31, 2013 and 2012 of approximately $(26.3) million and $(40.0) million, respectively, is a combination of the fair value of qualifying cash flow hedges of $(24.8) million and $(37.8) million, respectively, deferred losses on terminated interest swaps of $(1.9) million and $(2.7) million as of December 31, 2013 and 2012, respectively, and deferred net gains on termination of interest swaps of $0.3 million and $0.5 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||
The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. As of December 31, 2013 and 2012, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $(13.8) million and $(19.2) million, respectively. As of December 31, 2013 and 2012, the Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted collateral of $14.2 million and $20.0 million, respectively, which is recorded in other assets in the Company's Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||||||||||
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value | ' | ||||||||||||||||
Fair Value | ' | ||||||||||||||||
Note 11—Fair Value | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the carrying values and the estimated fair values of the Company's financial instruments as of December 31, 2013 and 2012: | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Carrying Value | Estimated | Carrying Value | Estimated | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Loans and investments, net | $ | 1,523,699,653 | $ | 1,550,248,793 | $ | 1,325,667,053 | $ | 1,316,001,339 | |||||||||
Available-for-sale securities | 37,315,652 | 37,315,652 | 3,552,736 | 3,552,736 | |||||||||||||
Securities held-to-maturity, net | — | — | 42,986,980 | 43,153,124 | |||||||||||||
Derivative financial instruments | 6,402,336 | 6,402,336 | 10,927,551 | 10,927,551 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Repurchase agreements and credit facilities. | $ | 159,125,023 | $ | 158,735,570 | $ | 130,661,619 | $ | 130,363,126 | |||||||||
Collateralized debt obligations | 639,622,981 | 521,938,885 | 812,452,845 | 590,901,757 | |||||||||||||
Collateralized loan obligations | 264,500,000 | 266,436,250 | 87,500,000 | 87,500,000 | |||||||||||||
Junior subordinated notes | 159,291,427 | 101,240,185 | 158,767,145 | 99,984,066 | |||||||||||||
Notes payable | 2,500,000 | 2,487,287 | 51,457,708 | 46,743,406 | |||||||||||||
Mortgage note payable—real estate owned and held-for-sale | 53,751,004 | 52,943,305 | 53,751,004 | 50,005,874 | |||||||||||||
Derivative financial instruments | 24,794,051 | 24,794,051 | 37,754,775 | 37,754,775 | |||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value of each class of financial instrument: | |||||||||||||||||
Loans and investments, net: Fair values of loans and investments that are not impaired are estimated using discounted cash flow methodology, using discount rates, which, in the opinion of management, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Fair values of loans and investments that are impaired are estimated by the Company using significant judgments, which include assumptions regarding discount rates, capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders and other factors deemed necessary by management. | |||||||||||||||||
Available-for-sale securities: Fair values are approximated based on current market quotes received from active markets or financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. Fair values of RMBS investments are approximated based on internally developed valuation models, which are compared to current non-binding market quotes received from financial sources that trade such securities. The fair values of certain CMBS securities are estimated by the Company using significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders and other factors deemed necessary by management. | |||||||||||||||||
Held-to-maturity securities: Fair values are approximated based on internally developed valuation models, which are compared to current non-binding market quotes received from financial sources that trade such securities. | |||||||||||||||||
Derivative financial instruments: Fair values of interest rate swap derivatives are approximated based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. These items are included in other assets and other liabilities on the Consolidated Balance Sheets. The Company incorporates credit valuation adjustments in the fair values of its derivative financial instruments to reflect counterparty nonperformance risk. The fair values of RMBS underlying linked transactions are estimated based on internally developed valuation models, which are compared to broker quotations. The value of the underlying RMBS is then netted against the carrying amount (which approximates fair value) of the repurchase agreement borrowing at the valuation date. The fair value of linked transactions also includes accrued interest receivable on the RMBS and accrued interest payable on the underlying repurchase agreement borrowings. | |||||||||||||||||
Repurchase agreements, credit facilities, notes payable and mortgage notes payable: Fair values are estimated using discounted cash flow methodology, using discount rates, which, in the opinion of management, best reflect current market interest rates for financing with similar characteristics and credit quality. | |||||||||||||||||
Collateralized debt obligations and collateralized loan obligations: Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads. | |||||||||||||||||
Junior subordinated notes: Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads. | |||||||||||||||||
Fair Value Measurement | |||||||||||||||||
Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability's fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments' complexity. | |||||||||||||||||
Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows: | |||||||||||||||||
• | |||||||||||||||||
Level 1—Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities at the measurement date. The types of assets and liabilities carried at Level 1 fair value generally are government and agency securities, equities listed in active markets, investments in publicly traded mutual funds with quoted market prices and listed derivatives. | |||||||||||||||||
• | |||||||||||||||||
Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. Level 2 inputs include quoted market prices in markets that are not active for an identical or similar asset or liability, and quoted market prices in active markets for a similar asset or liability. Fair valued assets and liabilities that are generally included in this category are non-government securities, municipal bonds, certain hybrid financial instruments, certain mortgage and asset-backed securities, certain corporate debt, certain commitments and guarantees, certain private equity investments and certain derivatives. | |||||||||||||||||
• | |||||||||||||||||
Level 3—Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. These valuations are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Generally, assets and liabilities carried at fair value and included in this category are certain mortgage and asset-backed securities, certain corporate debt, certain private equity investments, certain municipal bonds, certain commitments and guarantees and certain derivatives. | |||||||||||||||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment and the Company evaluates its hierarchy disclosures each quarter. | |||||||||||||||||
The Company measures certain financial assets and financial liabilities at fair value on a recurring basis, including available—for—sale securities and derivative financial instruments. The fair value of these financial assets and liabilities was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying | Fair | Using Fair Value Hierarchy | |||||||||||||||
Value | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Available-for-sale securities(1) | $ | 37,315,652 | $ | 37,315,652 | $ | 734,866 | $ | — | $ | 36,580,786 | |||||||
Derivative financial instruments(2) | 6,402,336 | 6,402,336 | — | 5,483 | 6,396,853 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 24,794,051 | 24,794,051 | — | 24,794,051 | — | ||||||||||||
-1 | |||||||||||||||||
The Company's equity securities available-for-sale were measured using Level 1 inputs and the Company's RMBS and CMBS investments available-for-sale were measured using Level 3 inputs. | |||||||||||||||||
-2 | |||||||||||||||||
The Company's basis swap derivatives were measured using Level 2 inputs and the Company's forward contract derivatives were measured using Level 3 inputs. | |||||||||||||||||
Available-for-sale securities: Fair values are approximated based on current market quotes received from active markets or financial sources that trade such securities. The fair values of available-for-sale equity securities traded in active markets are approximated using Level 1 inputs, while the fair values of available-for-sale debt securities that are approximated using current, non-binding market quotes received from financial sources that trade such investments are valued using Level 3 inputs. The fair values of RMBS investments are approximated using Level 3 inputs that require significant judgments, and are used in internally developed valuation models, which are compared to current non-binding market quotes received from financial sources that trade such securities. The fair value of a CMBS security is estimated by the Company using Level 3 inputs that require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders and other factors deemed necessary by management. | |||||||||||||||||
Derivative financial instruments: Fair values of interest rate swap derivatives are approximated using Level 2 inputs based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles including counterparty risks, credit spreads and interest rate projections, as well as reasonable estimates about relevant future market conditions. These items are included in other assets and other liabilities on the Consolidated Balance Sheet. The Company incorporates credit valuation adjustments in the fair values of its derivative financial instruments to reflect counterparty nonperformance risk. The fair values of forward contract derivatives are approximated using Level 3 inputs in internally developed valuation models, which are compared to current non-binding market quotes for the underlying RMBS received from pricing services and financial sources that trade such investments. | |||||||||||||||||
The following roll forward table reconciles the beginning and ending balances of financial assets measured at fair value on a recurring basis using Level 3 inputs: | |||||||||||||||||
Available-for-sale | Derivative Financial | ||||||||||||||||
Securities | Instruments | ||||||||||||||||
Balance as of December 31, 2012 | $ | 3,200,000 | $ | 10,799,536 | |||||||||||||
Adjustments to fair value: | |||||||||||||||||
Additions(1) | 34,480,786 | 10,285,729 | |||||||||||||||
Paydowns(2) | — | (4,468,205 | ) | ||||||||||||||
Net changes in fair value(3) | — | (1,675,629 | ) | ||||||||||||||
Sales and settlements(4) | (1,100,000 | ) | (8,544,578 | ) | |||||||||||||
| | | | | | | | ||||||||||
Balance as of December 31, 2013 | $ | 36,580,786 | $ | 6,396,853 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
-1 | |||||||||||||||||
Represents RMBS investments transferred from held-to-maturity to available-for-sale and forward contract derivatives recorded at fair value in the year ended December 31, 2013. | |||||||||||||||||
-2 | |||||||||||||||||
Represents the paydowns on the forward contracts during the year ended December 31, 2013. | |||||||||||||||||
-3 | |||||||||||||||||
Represents the net change in fair value recorded to other income during the year ended December 31, 2013. | |||||||||||||||||
-4 | |||||||||||||||||
Represents the sale of a CDO bond investment and the settlement of forward contract derivatives during the year ended December 31, 2013. | |||||||||||||||||
The Company measures certain financial and non-financial assets at fair value on a nonrecurring basis, such as impaired loans, impaired real estate owned and land investments. The fair value of these assets was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Net | Fair | Using Fair Value Hierarchy | |||||||||||||||
Carrying | Value | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets: | |||||||||||||||||
Impaired loans, net(1) | $ | 85,193,835 | $ | 103,951,397 | $ | — | $ | — | $ | 103,951,397 | |||||||
Non-financial assets: | |||||||||||||||||
Impaired real estate owned(2) | 3,437,152 | 3,437,152 | — | — | 3,437,152 | ||||||||||||
Land investment(3) | 6,061,498 | 6,061,498 | — | — | 6,061,498 | ||||||||||||
-1 | |||||||||||||||||
The Company had an allowance for loan losses of $122.3 million relating to 15 loans with an aggregate carrying value, before loan loss reserves, of approximately $207.5 million at December 31, 2013. | |||||||||||||||||
-2 | |||||||||||||||||
The Company recorded an impairment loss on one of the properties in its multifamily portfolio in the fourth quarter of 2013. | |||||||||||||||||
-3 | |||||||||||||||||
The Company recorded land held as collateral for a loan that was transferred to other assets at fair value in the fourth quarter of 2013. | |||||||||||||||||
Loan impairment assessments: Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses when such loan or investment is deemed to be impaired. The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. The Company performs evaluations of its loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance and corresponding charge to the provision for loan losses. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders and other factors deemed necessary by management. The table above includes all impaired loans, regardless of the period in which an impairment was recognized. | |||||||||||||||||
Real estate owned and land investments: The Company performs evaluations of its real estate owned and land investments to determine if the fair value of the property is less than the net carrying value, which may result in impairment. These valuations require significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, comparable sales and other factors deemed necessary by management. | |||||||||||||||||
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||
Financial assets: | |||||||||||||||||
Impaired loans(1): | |||||||||||||||||
Multi-family | $ | 24,472,539 | Direct capitalization analysis | Discount rate | 7.50% to 8.00% (6.30%) | ||||||||||||
and discounted cash flows | Capitalization rate | 6.00% to 8.25% (6.98%) | |||||||||||||||
Revenue growth rate | 2.00% to 3.00% (1.73%) | ||||||||||||||||
Office | 7,330,000 | Discounted cash flows | Discount rate | 9.25% to 10.00% (9.45%) | |||||||||||||
Capitalization rate | 8.00% to 8.50% (8.16)% | ||||||||||||||||
Revenue growth rate | 2.50% to 3.00% (2.96)% | ||||||||||||||||
Land | 72,148,858 | Discounted cash flows | Discount rate | 15.00% | |||||||||||||
Capitalization rate | 7.25% | ||||||||||||||||
Revenue growth rate | 3.00% | ||||||||||||||||
CMBS | 2,100,000 | Discounted cash flows | Discount rate | 17.17% | |||||||||||||
RMBS | 34,480,786 | Valuation models | Discount rate | -2 | |||||||||||||
Loss severity | -2 | ||||||||||||||||
Forward Contract Derivatives | 6,396,853 | Valuation models | Cumulative default rate | -2 | |||||||||||||
Voluntary prepayment rate | -2 | ||||||||||||||||
Non-financial assets: | |||||||||||||||||
Impaired real estate owned | 3,437,152 | Discounted cash flows | Discount rate | 10.00% | |||||||||||||
Capitalization rate | 8.00% | ||||||||||||||||
Revenue growth rate | 2.35% | ||||||||||||||||
Land | 6,061,498 | Comparable sales and | Dollar per acre | $293K/Acre | |||||||||||||
discounted cash flows | Discount rate | 11.00% | |||||||||||||||
-1 | |||||||||||||||||
Includes all impaired loans regardless of the period in which provision was recorded. | |||||||||||||||||
-2 | |||||||||||||||||
Each RMBS and forward contract derivative is associated with an underlying security that is individually modeled and valued based on the security's specific characteristics, which include current collateral composition, collateral performance projections, tranche credit enhancement and other market factors. Accordingly, as the range of the unobservable inputs used to value each individual security varies greatly, disclosing a range or weighted average of such inputs would not be meaningful. In the first quarter of 2014, the Company sold the majority of these RMBS investments and forward contract derivatives. | |||||||||||||||||
Impaired Loans and CMBS: The Company analyzes valuation policies and procedures and analyzes changes in fair value from period to period through its quarterly impairment analysis. Many methods are used to develop and substantiate unobservable inputs such as analyzing discount and capitalization rates as well as researching revenue and expense growth. Significant increases in discount or capitalization rates in isolation would result in a significantly lower fair value measurement while significant increases in revenue growth rates in isolation would result in a significantly higher fair value measurement. Significant decreases in discount or capitalization rates in isolation would result in a significantly higher fair value measurement while significant decreases in revenue growth rates in isolation would result in a significantly lower fair value measurement. | |||||||||||||||||
RMBS and Forward Contract Derivatives: Fair value is approximated based on internally developed valuation models, which are compared to current non-binding market quotes received from financial sources that trade such securities. Significant unobservable inputs used to calculate the quotes are not readily available to the Company. | |||||||||||||||||
Real estate owned and land investment: The Asset Management department is responsible for the Company's valuation policies and procedures and analyzes changes in fair value from period to period through its quarterly impairment analysis. Many methods are used to develop and substantiate unobservable inputs such as analyzing discount and capitalization rates as well as researching revenue and expense growth. Significant increases in discount or capitalization rates and comparable sales in isolation would result in a significantly lower fair value measurement while significant increases in revenue growth rates in isolation would result in a significantly higher fair value measurement. Significant decreases in discount or capitalization rates and comparable sales in isolation would result in a significantly higher fair value measurement while significant decreases in revenue growth rates in isolation would result in a significantly lower fair value measurement. | |||||||||||||||||
The Company measures certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Fair Value Hierarchy | |||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Loans and investments, net | $ | 1,523,699,653 | $ | 1,550,248,793 | $ | — | $ | — | $ | 1,550,248,793 | |||||||
Financial liabilities: | |||||||||||||||||
Repurchase agreements and credit facilities | $ | 159,125,023 | $ | 158,735,570 | $ | — | $ | — | $ | 158,735,570 | |||||||
Collateralized debt obligations | 639,622,981 | 521,938,885 | — | — | 521,938,885 | ||||||||||||
Collateralized loan obligations | 264,500,000 | 266,436,250 | — | — | 266,436,250 | ||||||||||||
Junior subordinated notes | 159,291,427 | 101,240,185 | — | — | 101,240,185 | ||||||||||||
Notes payable | 2,500,000 | 2,487,287 | — | — | 2,487,287 | ||||||||||||
Mortgage note payable—real estate owned and held-for-sale | 53,751,004 | 52,943,305 | — | — | 52,943,305 | ||||||||||||
Loans and investments, net: Fair values of loans and investments that are not impaired are estimated using Level 3 inputs in a discounted cash flow model, using discount rates, which, in the opinion of management, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Fair values of loans and investments that are impaired are estimated at Level 3 by the Company using significant judgments, which include assumptions regarding capitalization rates, leasing, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan, loan sponsorship, actions of other lenders and other factors deemed necessary by management. | |||||||||||||||||
Repurchase agreements, credit facilities, notes payable and mortgage notes payable: Fair values are estimated at Level 3 using discounted cash flow methodology, using discount rates, which, in the opinion of management, best reflect current market interest rates for financing with similar characteristics and credit quality. | |||||||||||||||||
Collateralized debt obligations and collateralized loan obligation: Fair values are estimated at Level 3 based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads. | |||||||||||||||||
Junior subordinated notes: Fair values are estimated at Level 3 based on discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 12—Commitments and Contingencies | |
Contractual Commitments | |
The Company's debt facilities which include repurchase agreements, credit facilities, CDOs, CLOs, junior subordinated notes, notes payable and mortgage notes payable have approximate maturities of $531.4 million in 2014, $203.4 million in 2015, $194.2 in 2016, $106.3 million in 2017, $84.2 million in 2018 and $175.9 million thereafter. | |
In accordance with certain loans and investments, the Company has outstanding unfunded commitments of $5.8 million as of December 31, 2013 that the Company is obligated to fund as the borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction, and building conversions based on criteria met by the borrower in accordance with the loan agreements. In relation to the $5.8 million outstanding balance at December 31, 2013, the Company's restricted cash balance contained approximately $5.8 million available to fund the portion of the unfunded commitments for loans financed by the Company's CDO vehicles. | |
Litigation | |
The Company currently is neither subject to any material litigation nor, to management's knowledge, is any material litigation currently threatened against the Company other than the following: | |
On June 15, 2011, three related lawsuits were filed by the Extended Stay Litigation Trust (the "Trust"), a post-bankruptcy litigation trust alleged to have standing to pursue claims that previously had been held by Extended Stay, Inc. and the Homestead Village L.L.C. family of companies (together "ESI") (formerly Chapter 11 debtors, together the "Debtors") that have emerged from bankruptcy. Two of the lawsuits were filed in the United States Bankruptcy Court for the Southern District of New York, and the third in the Supreme Court of the State of New York, New York County. There are 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of the Company and certain other entities that are affiliates of the Company are included as defendants. The New York State Court action has been removed to the Bankruptcy Court. The Company's affiliates filed a motion to dismiss the three lawsuits. | |
The lawsuits all allege, as a factual basis and background certain facts surrounding the June 2007 leveraged buyout of ESI from affiliates of Blackstone Capital. The Company's subsidiary, Arbor ESH II, LLC, had a $115.0 million investment in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. The New York State Court action and one of the two federal court actions name as defendants, Arbor ESH II, LLC, Arbor Commercial Mortgage, LLC and ABT-ESI LLC, an entity in which the Company has a membership interest, among the broad group of defendants. These two actions were commenced by substantially identical complaints. The defendants are alleged in these complaints, among other things, to have breached fiduciary and contractual duties by causing or allowing the Debtors to pay illegal dividends or other improper distributions of value at a time when the Debtors were insolvent. These two complaints also allege that the defendants aided and abetted, induced, or participated in breaches of fiduciary duty, waste, and unjust enrichment ("Fiduciary Duty Claims") and name a director of the Company, and a former general counsel of Arbor Commercial Mortgage, LLC, each of whom had served on the Board of Directors of ESI for a period of time. The Company is defending these two defendants and paying the costs of such defense. On the basis of the foregoing allegations, the Trust has asserted claims under a number of common law theories, seeking the return of assets transferred by the Debtors prior to the Debtors' bankruptcy filing. | |
In the third action, filed in Bankruptcy Court, the same plaintiff, the Trust, has named Arbor Commercial Mortgage, LLC and ABT-ESI LLC, together with a number of other defendants and asserts claims, including constructive and fraudulent conveyance claims under state and federal statutes, as well as a claim under the Federal Debt Collection Procedure Act. | |
On June 28, 2013, the Trust filed a motion to amend the lawsuits, to, among other things, (i) consolidate the lawsuits into one lawsuit, (ii) remove 47 defendants, none of whom are related to the Company, from the lawsuits so that there are 26 remaining defendants, including 16 corporate and partnership entities and 10 individuals, and (iii) reduce the counts within the lawsuits from over 100 down to 17. The remaining counts in the amended complaint against affiliates of the Company are principally state law claims for breach of fiduciary duties, waste, unlawful dividends and unjust enrichment, and claims under the Bankruptcy Code for avoidance and recovery actions, among others. The bankruptcy court granted the motion and the amended complaint has been filed. The amended complaint seeks $139 million in the aggregate from director designees and affiliates of the Company. The Company has moved to dismiss the referenced actions and intends to vigorously defend against the claims asserted therein. A hearing date for the motion to dismiss has not been set yet. | |
The Company has not made a loss accrual for this litigation because it believes that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated. | |
Equity
Equity | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equity | ' | ||||||||
Equity | ' | ||||||||
Note 13—Equity | |||||||||
Preferred Stock | |||||||||
In February 2013, the Company completed an underwritten public offering of 1,400,000 shares of 8.25% Series A cumulative redeemable preferred stock with a liquidation preference of $25.00 per share, generating net proceeds of approximately $33.6 million after deducting the underwriting discount and other offering expenses. Also in February 2013, the underwriters exercised a portion of their over-allotment option for 151,500 shares providing additional net proceeds of approximately $3.7 million. | |||||||||
In May 2013, the Company completed an underwritten public offering of 1,200,000 shares of 7.75% Series B cumulative redeemable preferred stock generating net proceeds of approximately $28.9 million after deducting the underwriting discount and other offering expenses. Also in May 2013, the underwriters exercised a portion of their over-allotment option for 60,000 shares providing additional net proceeds of approximately $1.5 million. | |||||||||
Common Stock | |||||||||
In June 2012, the Company completed a public offering in which it sold 3,500,000 shares of its common stock for $5.40 per share, and received net proceeds of approximately $17.5 million after deducting the underwriting discount and other offering expenses. | |||||||||
In October 2012, the Company completed another public offering in which it sold 3,500,000 shares of its common stock for $5.80 per share, and received net proceeds of approximately $19.2 million after deducting the underwriting discount and other offering expenses. | |||||||||
In December 2012, the Company entered into an "At-The-Market" ("ATM") equity offering sales agreement with JMP Securities LLC ("JMP") whereby, in accordance with the terms of the agreement, from time to time the Company could issue and sell through JMP up to 6,000,000 shares of its common stock. Sales of the shares were made by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. As of March 15, 2013, JMP sold all of the 6,000,000 shares for net proceeds of $45.6 million. | |||||||||
In March 2013, the Company completed another public offering in which it sold 5,625,000 shares of its common stock for $8.00 per share, and received net proceeds of approximately $43.0 million after deducting the underwriting discount and other offering expenses. | |||||||||
In June 2013, the Company filed a shelf registration statement on Form S-3 with the SEC under the 1933 Act with respect to an aggregate of $500.0 million of debt securities, common stock, preferred stock, depositary shares and warrants that may be sold by the Company from time to time pursuant to Rule 415 of the 1933 Act. On August 5, 2013, the SEC declared this shelf registration statement effective. | |||||||||
In September 2013, the Company completed another public offering in which it sold 6,000,000 shares of its common stock for $7.08 per share, and received net proceeds of approximately $40.9 million after deducting the underwriting discount and other offering expenses. | |||||||||
The Company used the net proceeds from its preferred and common offerings to make investments, to repurchase or pay liabilities and for general corporate purposes. | |||||||||
In February 2014, we entered into an ATM equity offering sales agreement with JMP whereby, in accordance with the terms of the agreement, from time to time we may issue and sell through JMP up to 7,500,000 shares of our common stock. Sales of the shares, if any, will be made by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. As of February 14, 2014, no shares have been sold. | |||||||||
As of February 14, 2014, the Company has $457.5 million available under its $500.0 million shelf registration statement that was declared effective by the SEC in August 2013. | |||||||||
Deferred Compensation | |||||||||
The Company has a stock incentive plan under which the Board of Directors has the authority to issue shares of stock to certain directors, officers of the Company and employees of the Company and ACM. On May 1, 2013, the Company issued 70,000 shares of fully vested common stock to the independent members of the Board of Directors under the 2003 Stock Incentive Plan, as amended and restated in 2009 (the "Plan"), and recorded $0.5 million to selling and administrative expense in its Consolidated Statements of Operations in the second quarter of 2013. On February 28, 2013, the Company issued 192,750 shares of restricted common stock under the Plan to certain employees of the Company and ACM with a total grant date fair value of $1.5 million and recorded $0.2 million to employee compensation and benefits and $0.4 million to selling and administrative expense in the Company's Consolidated Statements of Operations in the first quarter of 2013. One third of the shares vested as of the date of grant, one third will vest in February 2014, and the remaining third will vest in February 2015. During the third quarter of 2013, a total of 667 shares of unvested restricted stock with a grant date fair value of less than $0.1 million were forfeited. As of December 31, 2013, unvested restricted stock consisted of 82,500 shares granted to non-employees with a grant date fair value of $0.7 million, which is subject to remeasurement each reporting period, and 45,333 shares granted to employees of the Company with a grant date fair value of $0.4 million. Expense is recognized ratably over the vesting period in the Company's Consolidated Statements of Operations in selling and administrative expense and employee compensation and benefits expense, respectively. During the year ended December 31, 2013, the Company recorded the ratable portion of the unvested restricted stock to employee compensation and benefits for $0.2 million and to selling and administrative expense for $0.3 million in its Consolidated Statements of Operations. | |||||||||
On April 3, 2012, the Company issued an aggregate of 90,000 shares of fully vested common stock to the non-management members of the Board of Directors, as well as 6,255 shares of fully vested common stock to a former director who was also the corporate secretary, under the 2003 Stock Incentive Plan, as amended and restated in 2009 (the "Plan"), and recorded approximately $0.5 million to selling and administrative expense in its Consolidated Statement of Operations for the year ended December 31, 2012. On March 19, 2012, the Company issued 10,000 shares of fully vested common stock under the Plan to a director who is also an officer of the managing member of ACM, and recorded approximately $0.1 million to selling and administrative expense in the Company's Consolidated Statement of Operations for the year ended December 31, 2012. On January 22, 2012, the Company issued 15,000 shares of fully vested common stock under the Plan to a director who was re-appointed to the Board of Directors on December 19, 2011, and accrued approximately $0.1 million to selling and administrative expense in the Company's Consolidated Statement of Operations for the year ended December 31, 2011. In February 2013, the Board of Directors authorized the issuance of approximately 200,000 shares of restricted common stock under the Plan to certain employees of the Company and ACM. The effective date of the grant will be February 28, 2013 and will vest over a two year period. One third of the shares will vest as of the date of grant, one third will vest in February 2014, and the remaining third will vest in February 2015. | |||||||||
On December 12, 2011, the Company issued an aggregate of 250,000 shares of common stock under the Plan to certain employees of the Company and ACM. The 250,000 common shares underlying the stock awards granted were fully vested as of the date of grant and the Company recorded approximately $0.4 million to employee compensation and benefits and approximately $0.5 million to selling and administrative expense in its Consolidated Statement of Operations for the year ended December 31, 2011. On July 22, 2011, the Company issued an aggregate of 105,000 shares of common stock under the Plan to the non-management members of the Board of Directors. The 105,000 common shares underlying the stock awards granted were fully vested as of the date of grant and the Company recorded approximately $0.5 million to selling and administrative expense in its Consolidated Statement of Operations for the year ended December 31, 2011. On April 1, 2010, the Company issued an aggregate of 90,000 shares of common stock under the Plan to the independent members of the Board of Directors. The 90,000 common shares underlying the stock awards granted were fully vested as of the date of grant and the Company recorded $0.3 million to selling and administrative expense in its Consolidated Statement of Operations for the year ended December 31, 2010. In May 2009, the Company's stockholders approved an amendment to the Plan to authorize the grant of stock options, as well as the authorization of an additional 1,250,000 shares of the Company's common stock to be reserved for issuance under the Plan. | |||||||||
Vesting is dependent on a service requirement. Dividends paid on restricted shares are recorded as dividends on shares of the Company's common stock whether or not they are vested. For accounting purposes, the Company measures the compensation costs for these shares as of the date of the grant, with subsequent remeasurement for any unvested shares granted to non-employees of the Company with such amounts expensed against earnings, at the grant date (for the portion that vest immediately) or ratably over the respective vesting periods. | |||||||||
Warrants | |||||||||
In connection with a debt restructuring with Wachovia Bank in 2009, the Company issued Wachovia 1.0 million warrants at an average strike price of $4.00. Of such warrants, 500,000 warrants are exercisable at a price of $3.50, 250,000 warrants are exercisable at a price of $4.00 and 250,000 warrants are exercisable at a price of $5.00. As of December 31, 2013, all of the warrants were exercisable, expire on July 23, 2015 and no warrants have been exercised to date. | |||||||||
Accumulated Other Comprehensive Loss | |||||||||
At December 31, 2013, accumulated other comprehensive loss was $25.2 million and consisted of $26.3 million of net unrealized losses on derivatives designated as cash flow hedges and a $1.1 million unrealized gain related to available-for-sale securities. At December 31, 2012, accumulated other comprehensive loss was $39.6 million and consisted of $40.0 million of net unrealized losses on derivatives designated as cash flow hedges and a $0.4 million unrealized gain related to available-for-sale securities. | |||||||||
Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2013 and 2012 were as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 31, | Statement of | ||||||||
2013 | 2012 | Operations Caption | |||||||
Net realized losses on derivatives designated as cash flow hedges: | |||||||||
Interest Rate Swaps / Cap | $ | (14,131 | ) | $ | (16,565 | ) | Interest expense(1) | ||
| | | | | | | | | |
| | | | | | | | | |
Net realized gain on sale of available-for-sale investments: | |||||||||
CDO bond investment | $ | 100 | $ | — | Other income(2) | ||||
| | | | | | | | | |
| | | | | | | | | |
-1 | |||||||||
See Note 10—"Derivative Financial Instruments" for additional details. | |||||||||
-2 | |||||||||
See Note 4—"Securities" for additional details. | |||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||
Note 14—Earnings Per Share | ||||||||||||||||||||
Basic earnings per share ("EPS") is calculated by dividing net income (loss) attributable to Arbor Realty Trust, Inc. by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method. The Company's common stock equivalents include the dilutive effect of warrants outstanding. | ||||||||||||||||||||
The following is a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 17,112,078 | $ | 17,112,078 | $ | 16,492,062 | $ | 16,492,062 | $ | (37,311,821 | ) | $ | (37,311,821 | ) | ||||||
(Loss) income from discontinued operations | (444,123 | ) | (444,123 | ) | 5,008,826 | 5,008,826 | (2,999,892 | ) | (2,999,892 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders(1) | $ | 16,667,955 | $ | 16,667,955 | $ | 21,500,888 | $ | 21,500,888 | $ | (40,311,713 | ) | $ | (40,311,713 | ) | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding | 42,399,872 | 42,399,872 | 26,956,938 | 26,956,938 | 24,968,894 | 24,968,894 | ||||||||||||||
Dilutive effect of warrants(2) | — | 435,272 | — | 254,349 | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding | 42,399,872 | 42,835,144 | 26,956,938 | 27,211,287 | 24,968,894 | 24,968,894 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends, per common share | $ | 0.4 | $ | 0.4 | $ | 0.61 | $ | 0.61 | $ | (1.49 | ) | $ | (1.49 | ) | ||||||
Income (loss) from discontinued operations per common share | (0.01 | ) | (0.01 | ) | 0.19 | 0.18 | (0.12 | ) | (0.12 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Arbor Realty Trust, Inc. per common share(1) | $ | 0.39 | $ | 0.39 | $ | 0.8 | $ | 0.79 | $ | (1.61 | ) | $ | (1.61 | ) | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Net of noncontrolling interest and preferred stock dividends. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
In connection with a debt restructuring with Wachovia Bank in the third quarter of 2009, the Company issued Wachovia 1.0 million warrants at an average strike price of $4.00. For the year ended December 31, 2011, the Company had a net loss and thus did not have a dilutive effect from the warrants. | ||||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 15—Related Party Transactions | |
Due from related party was approximately $0.1 million at both December 31, 2013 and 2012 and consisted primarily of escrows held by ACM and its affiliates related to real estate transactions. | |
Due to related party was $2.8 million and $3.1 million at December 31, 2013 and December 31, 2012, respectively, and consisted primarily of base management fees due to ACM that were remitted by the Company in the following quarter. | |
In October 2013, the Company purchased, at par, a $3.0 million mezzanine loan from ACM who originated the loan in September 2013 to a third party entity. The loan has a fixed interest rate of 13.00% and a maturity date of October 2018. Interest income recorded from this loan was approximately $0.1 million for the year ended December 31, 2013. | |
In June 2013, the Company's board of directors formed a Special Committee consisting of independent directors in connection with the exploration and evaluation of a potential transaction with the Company's manager involving the acquisition of its manager's Fannie Mae, DUS, FHA and CMBS platforms, as well as the internalization of the management of its current business. Although there have been preliminary discussions between the Special Committee and representatives of the Company's manager, it cannot provide any assurance regarding the timing, terms or form of any such transaction, including the amount or type of consideration (including the issuance of common stock) or related financing, or whether any transaction between the Company and its manager will occur at all. Also, in connection with evaluating a potential transaction with the Company's manager, the Special Committee has engaged legal, financial and accounting advisors resulting in approximately $1.4 million of advisory fees to date. | |
In April 2013, the Company originated six bridge loans totaling $53.0 million for a portfolio of multifamily properties owned by a consortium of investors including Mr. Ivan Kaufman and his affiliates and Mr. Fred Weber, who together own an interest of approximately 19% in the borrowing entity. The loans had an interest rate of one-month LIBOR plus 7.25% and a maturity date of April 2015, which were paid off in the fourth quarter of 2013. In November 2013, we originated a new bridge loan for $2.0 million with an interest rate of one-month LIBOR plus 5.50%. Interest income recorded from these loans totaled approximately $3.1 million for the year ended December 31, 2013. | |
In April 2013, the Company also purchased, at par, a $6.4 million bridge loan from ACM who originated the loan in March 2013 to a third party entity that acquired a property from an entity owned by Mr. Ivan Kaufman and his affiliates and Mr. Fred Weber, who together also provided a $1.1 million preferred equity contribution to the overall transaction. Mr. Ivan Kaufman also provided a $1.0 million personal guaranty on the bridge loan. The bridge loan bears interest at a rate of one-month LIBOR plus 5.00% for the first year then one-month LIBOR plus 6.00% thereafter and has a maturity date of March 2015 with three one year extension options. Interest income recorded from this loan totaled approximately $0.2 million for the year ended December 31, 2013. | |
In January 2013, the Company originated a $7.5 million bridge loan for a multifamily property in Charlotte, North Carolina. William C. Green, who serves on the Company's Board of Directors, holds a 6.6% partnership interest in the borrowing entity and is the chief financial officer of an affiliated entity that is a partner in, and the management company for, the borrowing entity. Mr. Green also provided a $0.4 million personal guaranty on the bridge loan. The loan bears interest at a rate of one-month LIBOR plus 6.00% and has a maturity date of January 2015. Interest income recorded from this loan totaled approximately $0.5 million for the year ended December 31, 2013. | |
In December 2012, ACM acquired a multifamily property in Detroit, Michigan and simultaneously sold the property to a third party, who received a $30.0 million bridge loan from the Company. ACM retained a $6.0 million preferred equity interest in the entity. The loan to the Company bears interest at a rate of one-month LIBOR plus 5.00% with a LIBOR cap of 1.00% and has a maturity date of November 2014 with three one year extension options. Interest income recorded from this loan totaled approximately $1.6 million and $0.2 million for the years ended December 31, 2013 and 2012, respectively. | |
In September 2012, the Company purchased, at par, a $5.1 million bridge loan from ACM. The loan was originated by ACM in May 2012 to a third party entity that acquired a multifamily property from ACM. The loan bears interest at a rate of one-month LIBOR plus 5.50% with a LIBOR floor of 0.24% and has a maturity date of May 2015. Interest income recorded from this loan totaled approximately $0.3 million and $0.1 million for the years ended December 31, 2013 and 2012, respectively. | |
In December 2011, the Company completed a restructuring of a $67.6 million preferred equity investment on the Lexford Portfolio ("Lexford"), which is a portfolio of multi-family assets. The Company, along with a consortium of independent outside investors, made an additional preferred equity investment of $25.0 million in Lexford of which the Company held a $10.5 million interest, and Mr. Fred Weber, the Company's executive vice president of structured finance, held a $0.5 million interest, which was paid down to $22.5 million in the third quarter of 2013, and then paid off in the fourth quarter of 2013. The original preferred equity investment now bears a fixed rate of interest of 2.36%, revised from an original rate of LIBOR plus 5.00% (the loan was paying a modified rate of LIBOR plus 1.65% at the time of the new investment). The original preferred equity investment matures in June 2020. Interest income recorded from the preferred equity investment totaled approximately $1.1 million, $1.3 million and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. The new preferred equity investment had a fixed interest rate of 12% and a maturity date in June 2020. The Company, along with the same outside investors, also made a $0.1 million equity investment into Lexford, of which the Company held a $44,000 noncontrolling interest, and does not have the power to control the significant activities of the entity. During the fourth quarter of 2011, the Company recorded losses from the entity against the equity investment, reducing the balance to zero. The Company records this investment under the equity method of accounting. In addition, under the terms of the restructuring, Lexford's first mortgage lender required a change of property manager for the underlying assets. The new management company is an affiliate of Mr. Ivan Kaufman, the Company's chairman and chief executive officer, and has a contract with the new entity for 7.5 years and will be entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or refinancing of the debt should the management company remain engaged by the new entity at the time of such capital event. In the first quarter of 2012, Mr. Fred Weber invested $250,000 in the new management company and currently owns a 23.5% ownership interest. Mr. Ivan Kaufman and his affiliates currently own a 53.9% ownership interest. The Company has provided limited ("bad boy") guarantees for certain debt controlled by Lexford. The bad boy guarantees may become a liability for the Company upon standard "bad" acts such as fraud or a material misrepresentation by Lexford or the Company. At December 31, 2013, this debt had an aggregate outstanding balance of $703.6 million and is scheduled to mature between 2017 and 2023. | |
During the second quarter of 2011, the Company originated a mortgage loan to a third party borrower secured by property purchased from ACM. The loan had an unpaid principal balance of $6.2 million, a maturity date of May 2014 and a variable interest rate of LIBOR plus 6.00%. Upon approving the transaction, the independent directors committee of the Board of Directors required the Company to sell the loan in 90 days and ACM agreed to guarantee the loan until it was sold. In the third quarter of 2011, the loan was sold to an affiliated entity of Mr. Ivan Kaufman for $6.2 million. Interest income recorded from this loan for the year ended December 31, 2011 was approximately $0.2 million. | |
During the second quarter of 2011, the Company originated a loan to a third party borrower for a portfolio of properties with an unpaid principal balance of $24.4 million, of which one property in the portfolio was previously financed with an $11.7 million loan that was purchased by ACM. The $11.7 million loan was repaid as part of the $24.4 million loan on the portfolio. The new loan had a variable interest rate of LIBOR plus 4.75% and was repaid in full in January 2013. Interest income recorded from this loan totaled approximately $0.1 million, $1.7 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
During the first quarter of 2011, the Company originated four mortgage loans totaling $28.4 million to borrowers which were secured by property purchased from ACM or its affiliate. Two of the loans totaling $22.4 million have maturity dates of March 2014 and a combined weighted average variable interest rate of 6.20% as of December 31, 2013 and were secured by the same property. The third was a $2.0 million bridge loan with a maturity date of February 2013 and an interest rate of one-month LIBOR plus 6.00%, which was paid off in the third quarter of 2012. The fourth was a $4.0 million bridge loan with an original maturity date in April 2013 which was extended to March 2014 and an interest rate of one-month LIBOR plus 6.00%. Interest income recorded from these loans totaled approximately $1.8 million, $1.9 million and $1.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
In October 2010, the Company purchased, at par, a $4.7 million bridge loan from ACM. The loan was originated by ACM in June 2010 to a joint venture that acquired a condo development property in Brooklyn, New York. The loan bore interest at a rate of one-month LIBOR plus 8% with a LIBOR floor of 0.5% and a LIBOR cap of 1.5% and had a maturity date of June 2012. In the second quarter of 2012, the loan matured and was paid off. In addition, ACM contributed $0.9 million for a 50% non-controlling interest in an entity, which owns 28% of this joint venture. In the third quarter of 2011, ACM sold its investment in this joint venture to an affiliated entity of Mr. Ivan Kaufman for $0.9 million. Interest income recorded from this loan totaled approximately $0.1 million and $0.4 million for the years ended December 31, 2012 and 2011, respectively. | |
The Company is dependent upon its manager, ACM, with whom it has a conflict of interest, to provide services to the Company that are vital to its operations. The Company's chairman, chief executive officer and president, Mr. Ivan Kaufman, is also the chief executive officer and president of ACM, and, the Company's chief financial officer and treasurer, Mr. Paul Elenio, is the chief financial officer of ACM. In addition, Mr. Kaufman and his affiliated entities ("the Kaufman Entities") together beneficially own approximately 92% of the outstanding membership interests of ACM and certain of the Company's employees and directors also hold an ownership interest in ACM. Furthermore, one of the Company's former directors is general counsel to ACM and another of the Company's directors also serves as the trustee of one of the Kaufman Entities that holds a majority of the outstanding membership interests in ACM and co-trustee of another Kaufman Entity that owns an equity interest in ACM. ACM currently holds approximately 5.3 million of the Company's common shares, representing approximately 11% of the voting power of the Company's outstanding stock as of December 31, 2013. The Company's Board of Directors approved a resolution under the Company's charter allowing Ivan Kaufman and ACM, (which Mr. Kaufman has a controlling equity interest in), to own more than the ownership interest limit of the Company's common stock stated in the Company's charter as amended. In May 2012, the Company's charter was amended to lower each of the general aggregate stock ownership limit and the general common stock ownership limit from 7% to 5% unless an exemption is granted by the Company's Board of Directors. | |
Distributions
Distributions | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Note 16—Distributions | |||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's common stock from January 1, 2013 through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration | For Quarter | Record | Payment | Dividend | |||||||||||||||||||||||||
Date | Ended | Date | Date | Per Share | |||||||||||||||||||||||||
November 6, 2013 | September 30, 2013 | November 20, 2013 | December 2, 2013 | $ | 0.13 | ||||||||||||||||||||||||
July 31, 2013 | June 30, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.13 | ||||||||||||||||||||||||
May 1, 2013 | March 31, 2013 | May 15, 2013 | May 31, 2013 | $ | 0.12 | ||||||||||||||||||||||||
February 12, 2013 | December 31, 2012 | March 5, 2013 | March 12, 2013 | $ | 0.12 | ||||||||||||||||||||||||
On February 12, 2014, the Board of Directors declared a cash dividend of $0.13 for the quarter ended December 31, 2013. The dividend is payable on February 28, 2014 to common stockholders of record on February 25, 2014. | |||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's 8.25% Series A preferred stock from February 1, 2013 (date of issuance) through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration Date | For Period | For Period | Record | Payment | Dividend | ||||||||||||||||||||||||
Beginning | Ended | Date | Date | Per Share | |||||||||||||||||||||||||
October 25, 2013 | September 1, 2013 | November 30, 2013 | November 15, 2013 | December 2, 2013 | $ | 0.515625 | |||||||||||||||||||||||
July 31, 2013 | June 1, 2013 | August 31, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.515625 | |||||||||||||||||||||||
May 1, 2013 | February 1, 2013 | May 31, 2013 | May 15, 2013 | May 31, 2013 | $ | 0.6875 | |||||||||||||||||||||||
On February 3, 2014, the Board of Directors declared a cash dividend of $0.515625 per share of 8.25% Series A cumulative redeemable preferred stock reflecting dividends from December 1, 2013, through February 28, 2014. The dividend is payable on February 28, 2014 to preferred stockholders of record on February 15, 2014. The Company accrued dividends of $0.3 million in the fourth quarter of 2013. | |||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's 7.75% Series B preferred stock from May 9, 2013 (date of issuance) through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration | For Period | For Period | Record | Payment | Dividend | ||||||||||||||||||||||||
Date | Beginning | Ended | Date | Date | Per Share | ||||||||||||||||||||||||
October 25, 2013 | September 1, 2013 | November 30, 2013 | November 15, 2013 | December 2, 2013 | $ | 0.484375 | |||||||||||||||||||||||
July 31, 2013 | May 9, 2013 | August 31, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.6028 | |||||||||||||||||||||||
On February 3, 2014, the Board of Directors also declared a cash dividend of $0.484375 per share of 7.75% Series B cumulative redeemable preferred stock reflecting dividends from December 1, 2013, through February 28, 2014. The dividend is payable on February 28, 2014 to preferred stockholders of record on February 15, 2014. The Company accrued dividends of $0.2 million in the fourth quarter of 2013. | |||||||||||||||||||||||||||||
The Company declared and paid distributions of $14,500, $12,236 and $14,500 for the years ended December 31, 2013, 2012 and 2011, respectively, representing the 12.5% return on the preferred shares issued to third parties by its subsidiary REIT. | |||||||||||||||||||||||||||||
The Company must currently distribute at least 90% of its taxable income in order to qualify as a REIT and must distribute 100% of its taxable income in order not to be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as depreciation or provision for loan losses), in certain circumstances, the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow to make sufficient distribution payments. The Company was in compliance with all REIT requirements as of December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
The following table presents dividends paid by the Company on its common and preferred stock for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
For Tax Purposes | |||||||||||||||||||||||||||||
Dividend Classified as | Capital Gain | Dividend Classified | |||||||||||||||||||||||||||
Ordinary Income | Distribution | as Return of Capital | |||||||||||||||||||||||||||
Year | Total | Dividend | Percent | Dividend | Qualified | Percent | Dividend | Percent | Dividend | ||||||||||||||||||||
Dividends | Paid | Paid | Dividend | Paid | Paid | ||||||||||||||||||||||||
Paid(1) | Per Share | Per | Income(2) | Per | Per | ||||||||||||||||||||||||
(In Thousands) | Share | Share | Share | ||||||||||||||||||||||||||
Common Stock: | |||||||||||||||||||||||||||||
2013 | $ | 21,327 | $ | 0.5 | 100 | % | $ | 0.5 | — | — | — | — | — | ||||||||||||||||
2012 | $ | 8,031 | $ | 0.285 | 100 | % | $ | 0.285 | — | — | — | — | — | ||||||||||||||||
8.25% Series A Preferred Stock: | |||||||||||||||||||||||||||||
2013 | $ | 2,667 | $ | 1.719 | 100 | % | $ | 1.719 | — | — | — | — | — | ||||||||||||||||
7.75% Series B Preferred Stock: | |||||||||||||||||||||||||||||
2013 | $ | 1,370 | $ | 1.087 | 100 | % | $ | 1.087 | — | — | — | — | — | ||||||||||||||||
-1 | |||||||||||||||||||||||||||||
The Company did not pay dividends on its common stock in 2011 and 2013 is the initial year for the preferred stock dividends. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
Qualified dividend income is eligible for reduced dividend rates. | |||||||||||||||||||||||||||||
Management_Agreement
Management Agreement | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Management Agreement | ' | ||||||||||
Management Agreement | ' | ||||||||||
Note 17—Management Agreement | |||||||||||
The Company, ARLP and Arbor Realty SR, Inc. have a management agreement with ACM, pursuant to which ACM provides certain services and the Company pays ACM a base management fee and under certain circumstances, an annual incentive fee. | |||||||||||
The Company's chief executive officer is also ACM's chief executive officer and controlling equity owner and the Company's chief financial officer and treasurer is also ACM's chief financial officer. ACM has agreed to provide the Company with structured finance investment opportunities and loan servicing as well as other services necessary to operate its business. The Company relies to a significant extent on the facilities and resources of ACM to conduct its operations. ACM's management of the Company is under the direction or supervision of the Company's Board of Directors. The management agreement requires ACM to manage the business affairs in conformity with the policies and the general investment guidelines that are approved and monitored by the Company's Board of Directors. | |||||||||||
The Company and its operating partnership have also entered into a services agreement with ACM pursuant to which its asset management group provides asset management services to ACM. In the event the services provided by its asset management group pursuant to the agreement exceed by more than 15% per quarter the level of activity anticipated by the Board of Directors, it will negotiate in good faith with its manager an adjustment to the manager's base management fee under the management agreement, to reflect the scope of the services, the quantity of serviced assets or the time required to be devoted to the services by its asset management group. | |||||||||||
The base management fee is an arrangement whereby the Company reimburses ACM for its actual costs incurred in managing the Company's business based on the parties' agreement in advance on an annual budget with subsequent quarterly true-ups to actual costs. All origination fees on investments are retained by the Company. | |||||||||||
The incentive fee is calculated as (1) 25% of the amount by which (a) the Company's funds from operations per share, adjusted for certain gains and losses including gains from the retirement and restructuring of debt and 60% of any loan loss reserve recoveries (spread over a three year period), exceeds (b) the product of (x) 9.5% per annum or the Ten Year U.S. Treasury Rate plus 3.5%, whichever is greater, and (y) the greater of $10.00 or the weighted average of book value of the net assets contributed by ACM to ARLP per ARLP partnership unit, the offering price per share of the Company's common equity in the private offering on July 1, 2003 and subsequent offerings and the issue price per ARLP partnership unit for subsequent contributions to ARLP, multiplied by (2) the weighted average of the Company's outstanding shares. | |||||||||||
The minimum return, or incentive fee hurdle to be reached before an incentive fee is earned, is a percentage applied on a per share basis to the greater of $10.00 or the average gross proceeds per share. In addition, 60% of any loan loss and other reserve recoveries are eligible to be included in the incentive fee calculation, which recoveries are spread over a three year period. | |||||||||||
The management agreement also allows the Company to consider, from time to time, the payment of additional "success-based" fees to ACM for accomplishing certain specified corporate objectives; has a termination fee of $10.0 million; and is renewable automatically for successive one-year terms, unless terminated with six months prior written notice. If the Company terminates or elects not to renew the management agreement without cause, it is required to pay the termination fee of $10.0 million. | |||||||||||
The incentive fee is measured on an annual basis. However, when applicable, the Company will pay the annual incentive fee in quarterly installments, each within 60 days of each fiscal quarter. The quarterly installments are calculated based on the results for the period of twelve months ending on the last day of each quarter with respect to which such installment is payable. Each quarterly installment payment is deemed to be an advance of a portion of the incentive fee payable for the year, with an adjustment at year end to reflect the full year's results. At least 25% of any incentive fee is paid to ACM in shares of the Company's common stock, subject to ownership limitations in the Company's charter. For purposes of determining the number of shares that are paid to ACM to satisfy the common stock portion of the incentive fee from and after the date the Company's common shares are publicly traded, each common share shall have a value equal to the average closing price per common share based on the last twenty days of the fiscal quarter with respect to which the incentive fee is being paid. | |||||||||||
The incentive fee is accrued as it is earned. The expense incurred for incentive fee paid in common stock is determined using the amount of stock calculated as noted above and the quoted market price of the stock on the last day of each quarter. At December 31 of each year, the Company remeasures the incentive fee expense paid to ACM in shares of the Company's common stock in accordance with current accounting guidance, which discusses how to determine the expense when certain terms are not known prior to the measurement date. Accordingly, any expense recorded related to common stock issued as a portion of incentive fee is adjusted to reflect the fair value of the stock on the measurement date when the final calculation of the total incentive fee is determined. In the event the calculated incentive fee for the full year is an amount less than the total of the installment payments made to ACM for the year, ACM will refund to the Company the amount of such overpayment in cash regardless of whether such installments were paid in cash or common stock. In such a case, the Company would record a negative incentive fee expense in the quarter when such overpayment is determined. | |||||||||||
ACM is responsible for all costs incident to the performance of its duties under the management agreement, including compensation of its employees, rent for facilities and other "overhead" expenses. The Company is required to pay ACM management fees as well as reimburse ACM for all expenses incurred on behalf of the Company in connection with the raising of capital or the incurrence of debt, interest expenses, taxes and license fees, litigation and extraordinary or non recurring expenses. | |||||||||||
ACM, pursuant to the management agreement with the Company, and Mr. Kaufman, pursuant to his non-competition agreement with the Company, have granted the Company a right of first refusal to pursue all opportunities identified by them or their affiliates to invest in multifamily and commercial mortgage loans and customized financing transactions, including bridge loans, mezzanine loans, preferred equity investments, note acquisitions and participation interests in owners of real properties (collectively, "Structured Finance Investments") as long as such investment opportunities are consistent with the Company's investment objectives and guidelines and such investments would not adversely affect the Company's status as a REIT. These agreements also provide that ACM or Mr. Kaufman, as the case may be, may pursue any opportunity in Structured Finance Investments if the opportunity is rejected by both the Company's credit committee and a majority of the Company's independent directors. | |||||||||||
Pursuant to the management agreement and Mr. Kaufman's non-competition agreement, the Company has agreed not to pursue, and to allow ACM and its affiliates, including Mr. Kaufman, to pursue opportunities to invest in multi-family and commercial mortgage loans that meet the underwriting and approval guidelines of Fannie Mae, the Federal Housing Administration and conduit commercial lending programs secured by first liens on real property (collectively, the "Manager Target Investments"). In addition to its exclusive right to pursue Manager Target Investments, ACM and its affiliates may pursue any other type of investment (except Structured Finance Investments) without the Company's consent. | |||||||||||
The following table sets forth the Company's base management fees and incentive fees for the periods indicated: | |||||||||||
Year Ended December 31, | |||||||||||
Management Fees: | 2013 | 2012 | 2011 | ||||||||
Base(1) | $ | 10,900,000 | $ | 10,000,000 | $ | 8,300,000 | |||||
Incentive | — | — | — | ||||||||
| | | | | | | | | | | |
Total management fee | $ | 10,900,000 | $ | 10,000,000 | $ | 8,300,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Included in base management fees at December 31, 2013 and 2012 was $2.8 million and $3.1 million, respectively, which was included in due to related party. These amounts are paid in the quarters subsequent to each respective year end. | |||||||||||
For the years ended December 31, 2013, 2012 and 2011, no "success-based" payments were made. | |||||||||||
Installments of the annual incentive fee are subject to quarterly recalculation and potential reconciliation at the end of the fiscal year, and any overpayments are required to be repaid in accordance with the management agreement. For the years ended December 31, 2013, 2012 and 2011, ACM did not earn an incentive management fee. | |||||||||||
Additionally, in 2007, ACM, received an incentive fee installment totaling $19.0 million which was recorded as a prepaid management fee related to the incentive fee on $77.1 million of deferred revenue recognized on the transfer of control of the 450 West 33rd Street property, which is one of the Company's equity affiliates. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
Note 18—Income Taxes | |||||||||||
The Company is organized and conducts its operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto. A REIT is generally not subject to federal income tax on taxable income which is distributed to its stockholders, provided that at least 90% of taxable income is distributed and provided that certain other requirements are met. The Company did not have REIT—federal taxable income net of dividends paid and net operating loss deductions for the years ended December 31, 2013, 2012 and 2011, and therefore, has not provided for federal income tax expense, except for $0.4 million of federal alternative minimum tax recorded in 2012. | |||||||||||
Certain of the Company's assets or operations that would not otherwise comply with the REIT requirements, are owned or conducted by its taxable REIT subsidiaries, the income of which is subject to federal and state income taxes. The Company did not record a provision for current income taxes related to the assets that are held in taxable REIT subsidiaries for the years ended December 31, 2013, 2012 and 2011 as they were in a net loss position. However, during the year ended December 31, 2012, the Company recorded a $1.4 million benefit from income taxes for the receipt of a refund of federal income taxes paid by a taxable REIT subsidiary in a prior year. | |||||||||||
In 2012, the Company recorded $0.2 million of estimated state income taxes incurred in those states that did not adopt the federal tax law that allows the Company to elect to defer income generated from certain debt extinguishment transactions. There were no such estimated income taxes for the years ended December 31, 2013 and 2011. For the 2009 and 2010 tax years, the income and the tax on certain debt extinguishment transactions was, at the Company's election, deferred to future periods. | |||||||||||
The Company's (benefit) provision for income taxes was comprised as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax (benefit) provision: | |||||||||||
Federal | $ | — | $ | (1,025,508 | ) | $ | — | ||||
State | — | 245,517 | — | ||||||||
| | | | | | | | | | | |
Total current tax (benefit) provision | — | (779,991 | ) | — | |||||||
| | | | | | | | | | | |
Deferred tax (benefit) provision: | |||||||||||
Federal—net of valuation allowance | — | (13,695 | ) | — | |||||||
State—net of valuation allowance | — | (7,872 | ) | — | |||||||
| | | | | | | | | | | |
Total deferred tax (benefit) provision | — | (21,567 | ) | — | |||||||
| | | | | | | | | | | |
Total (benefit) provision | $ | — | $ | (801,558 | ) | $ | — | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company's effective income tax rate as a percentage of pretax income or loss differed from the U.S. federal statutory rate was as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
REIT non-taxable income | (35.7 | ) | (41.0 | ) | (41.9 | ) | |||||
State and local income taxes, net of federal tax benefit | (1.1 | ) | (1.1 | ) | (0.9 | ) | |||||
Change in valuation allowance | 1.8 | 9.8 | 7.8 | ||||||||
Refund | — | (6.5 | ) | — | |||||||
| | | | | | | | | | | |
Effective income tax rate | — | % | (3.8 | )% | — | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The significant components of deferred tax assets (liabilities) were as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets (liabilities): | |||||||||||
Expenses not currently deductible | $ | 1,585,723 | $ | 1,705,929 | |||||||
Net operating and capital loss carryforwards | 5,534,018 | 3,180,736 | |||||||||
Interest in equity affiliates—net | (1,489,269 | ) | (1,034,317 | ) | |||||||
| | | | | | | | ||||
Deferred tax assets | 5,630,472 | 3,852,348 | |||||||||
Valuation allowance | (5,608,905 | ) | (3,830,781 | ) | |||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 21,567 | $ | 21,567 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Deferred tax assets, net of deferred tax liabilities, are included in other assets in the Consolidated Balance Sheet. At December 31, 2013, the Company had approximately $7.1 million of deferred tax assets consisting of expenses not currently deductible, net operating loss carryforwards and capital loss carryforwards. The Company's deferred tax assets are offset by approximately $1.5 million in deferred tax liabilities consisting of timing differences from investments in equity affiliates, and a valuation allowance of approximately $5.6 million. | |||||||||||
At December 31, 2012, the Company had approximately $4.8 million of deferred tax assets consisting of expenses not currently deductible, net operating loss carryforwards and capital loss carryforwards. The Company's deferred tax assets are offset by approximately $1.0 million of deferred tax liabilities resulting from timing differences relating to investments in equity affiliates, and a valuation allowance of approximately $3.8 million. | |||||||||||
The taxable REIT subsidiaries have federal and state net operating loss carryforwards as of December 31, 2013 and 2012 of approximately $13.0 million and $17.5 million, respectively, which will expire through 2034 and 2033, respectively. The taxable REIT subsidiaries also have a federal and state capital loss carryover as of December 31, 2013 of approximately $2.4 million, of which $2.0 million will expire in 2017 and $0.4 million will expire in 2019. The Company has concluded that it is more likely than not that the net operating and capital loss carryforwards will not be utilized during the carryforward period, and as such, net of deferred tax liabilities, the Company has established a valuation allowance against substantially all of these net deferred tax assets. | |||||||||||
As of December 31, 2013, the Company (excluding the taxable REIT subsidiaries) will have approximately $182.0 million of federal and state net operating loss carryforwards and approximately $90.0 million of capital loss carryforwards. The net operating losses will expire through 2034 and the capital losses will expire through 2018. In 2013, the Company recorded $113.0 million in capital gain from the redemption of preferred stock in Lightstone. The Capital gain was fully offset by available capital loss carryforwards. | |||||||||||
The Company has assessed its tax positions for all open tax years, which includes 2011 to 2013, and concluded there were no material uncertainties to be recognized. The Company's accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. The Company has not recognized any interest and penalties related to tax uncertainties for the years ended December 31, 2013, 2012 and 2011. | |||||||||||
Due_to_Borrowers
Due to Borrowers | 12 Months Ended |
Dec. 31, 2013 | |
Due to Borrowers | ' |
Due to Borrowers | ' |
Note 19—Due to Borrowers | |
Due to borrowers represents borrowers' funds held by the Company to fund certain expenditures or to be released at the Company's discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers' loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with. | |
Summary_Quarterly_Consolidated
Summary Quarterly Consolidated Financial Information - Unaudited | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Summary Quarterly Consolidated Financial Information - Unaudited | ' | |||||||||||||
Summary Quarterly Consolidated Financial Information - Unaudited | ' | |||||||||||||
Note 20—Summary Quarterly Consolidated Financial Information—Unaudited | ||||||||||||||
The following tables represent summarized quarterly financial data of the Company for the years ended December 31, 2013 and 2012 which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's results of operations. | ||||||||||||||
Net income (loss) shown agrees with the Company's quarterly report(s) on Form 10-Q as filed with the Securities and Exchange Commission. However, individual line items vary from such reports due to the presentation of discontinued operations being retroactively reclassified from property operating activity and related depreciation due to the classification of a real estate investment that was part of a portfolio of multifamily properties as held-for-sale sale in 2013 and the sale of a real estate investment that was part of a portfolio of hotel properties in 2012. | ||||||||||||||
Three Months Ended | ||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||
Net interest income | $ | 15,526,603 | $ | 15,097,248 | $ | 13,996,043 | $ | 12,346,578 | ||||||
Total other revenue | 5,465,819 | 6,688,523 | 8,251,944 | 9,713,786 | ||||||||||
Total other expenses | 16,083,239 | 17,700,377 | 17,873,676 | 18,412,689 | ||||||||||
| | | | | | | | | | | | | | |
Income from continuing operations before gain on extinguishment of debt and income (loss) from equity affiliates | 4,909,183 | 4,085,394 | 4,374,311 | 3,647,675 | ||||||||||
Gain on extinguishment of debt | — | 1,167,772 | — | 3,763,000 | ||||||||||
Income (loss) from equity affiliates | 40,937 | (81,723 | ) | (81,804 | ) | (81,885 | ) | |||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 4,950,120 | 5,171,443 | 4,292,507 | 7,328,790 | ||||||||||
Loss from discontinued operations | (172,644 | ) | (79,716 | ) | (90,191 | ) | (101,572 | ) | ||||||
| | | | | | | | | | | | | | |
Net income | 4,777,476 | 5,091,727 | 4,202,316 | 7,227,218 | ||||||||||
| | | | | | | | | | | | | | |
Preferred stock dividends | 1,410,305 | 1,410,333 | 1,152,617 | 533,328 | ||||||||||
Net income attributable to noncontrolling interest | — | 16,715 | 53,833 | 53,651 | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 3,367,171 | $ | 3,664,679 | $ | 2,995,866 | $ | 6,640,239 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic earnings per common share(1): | ||||||||||||||
Income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.2 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.2 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Diluted earnings per common share(1): | ||||||||||||||
Income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.19 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.19 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Three Months Ended | ||||||||||||||
December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | |||||||||||
Net interest income | $ | 11,034,505 | $ | 10,520,512 | $ | 9,731,906 | $ | 7,845,007 | ||||||
Total other revenue | 5,580,252 | 7,477,408 | 7,931,963 | 8,312,312 | ||||||||||
Total other expenses | 17,473,474 | 19,439,955 | 23,310,912 | 22,064,620 | ||||||||||
| | | | | | | | | | | | | | |
Loss from continuing operations before gain on extinguishment of debt, income (loss) from equity affiliates and benefit (provision) for income taxes | (858,717 | ) | (1,442,035 | ) | (5,647,043 | ) | (5,907,301 | ) | ||||||
Gain on extinguishment of debt | — | 4,144,688 | 20,968,214 | 5,346,121 | ||||||||||
Income (loss) from equity affiliates | 2,347 | (225,493 | ) | (224,136 | ) | (250,574 | ) | |||||||
| | | | | | | | | | | | | | |
(Loss) income before benefit (provision) for income taxes | (856,370 | ) | 2,477,160 | 15,097,035 | (811,754 | ) | ||||||||
Benefit (provision) for income taxes | 275,000 | (275,000 | ) | (600,000 | ) | 1,401,558 | ||||||||
| | | | | | | | | | | | | | |
(Loss) income from continuing operations | (581,370 | ) | 2,202,160 | 14,497,035 | 589,804 | |||||||||
| | | | | | | | | | | | | | |
Gain on sale of real estate held-for-sale | 466,310 | — | — | 3,487,145 | ||||||||||
(Loss) income from operations of real estate held-for-sale | (98,210 | ) | (87,855 | ) | 1,102,794 | 138,642 | ||||||||
| | | | | | | | | | | | | | |
Income (loss) from discontinued operations | 368,100 | (87,855 | ) | 1,102,794 | 3,625,787 | |||||||||
| | | | | | | | | | | | | | |
Net (loss) income | (213,270 | ) | 2,114,305 | 15,599,829 | 4,215,591 | |||||||||
Net income attributable to noncontrolling interest | 53,969 | 53,976 | 53,811 | 53,811 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (267,239 | ) | $ | 2,060,329 | $ | 15,546,018 | $ | 4,161,780 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic (loss) earnings per common share(1): | ||||||||||||||
(Loss) income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | (0.02 | ) | $ | 0.07 | $ | 0.58 | $ | 0.02 | |||||
Income (loss) from discontinued operations | 0.01 | — | 0.04 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (0.01 | ) | $ | 0.07 | $ | 0.62 | $ | 0.17 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Diluted (loss) earnings per common share(1): | ||||||||||||||
(Loss) income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | (0.02 | ) | $ | 0.07 | $ | 0.58 | $ | 0.02 | |||||
Income (loss) from discontinued operations | 0.01 | — | 0.04 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (0.01 | ) | $ | 0.07 | $ | 0.62 | $ | 0.17 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
The total for the year may differ from the sum of the quarters as a result of weighting. | ||||||||||||||
SCHEDULE_IV_LOANS_AND_OTHER_LE
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | ' | ||||||||||||||||||||||
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS | ' | ||||||||||||||||||||||
SCHEDULE IV—LOANS AND OTHER LENDING INVESTMENTS | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
Type | Location | Periodic | Maturity | Interest Pay | Prior Liens | Face | Carrying | Carrying | |||||||||||||||
Payment | Date(2) | Rate | Amount(4) | Amount(5) | Amount | ||||||||||||||||||
Terms(1) | Index(3) | Subject to | |||||||||||||||||||||
Delinquent | |||||||||||||||||||||||
Interest | |||||||||||||||||||||||
Bridge Loans: | |||||||||||||||||||||||
Bridge loans in excess of 3% of carrying amount of total loans: | |||||||||||||||||||||||
Multi-family | Various | IO | 2014 - 2017 | LIBOR + 3.49% - 5.60% | $ | — | $ | 219,930,532 | $ | 214,377,554 | $ | — | |||||||||||
Floor 0.25% - 0.48% | |||||||||||||||||||||||
Bridge loans less than 3% of carrying amount of total loans(6): | |||||||||||||||||||||||
Multi-family | Various | IO | 2014 - 2020 | LIBOR + 2.60% - 15.64% | 11,000,000 | 624,059,592 | 616,544,218 | 4,006,693 | |||||||||||||||
Floor 0.17% - 1.50% | |||||||||||||||||||||||
Fixed 10.00% - 15.00% | |||||||||||||||||||||||
Office | Various | IO | 2014 - 2020 | LIBOR + 3.10% - 8.00% | — | 156,715,698 | 152,482,970 | 6,277,844 | |||||||||||||||
Floor 0.24% - 4.25% | |||||||||||||||||||||||
Fixed 4.00% - 6.30% | |||||||||||||||||||||||
Land | Various | IO | 2014 - 2016 | LIBOR + 4.50% | 2,855,000 | 107,418,594 | 69,233,293 | — | |||||||||||||||
Fixed 7.00% - 11.64% | |||||||||||||||||||||||
Hotel | Various | IO / PI | 2017 | LIBOR + 7.25% | — | 34,181,252 | 34,181,252 | — | |||||||||||||||
Floor 0.50% | |||||||||||||||||||||||
Commercial | NY | PI | 2017 | LIBOR + 3.23% | — | 22,728,245 | 22,728,245 | — | |||||||||||||||
Floor 0.24% | |||||||||||||||||||||||
Retail | NJ | IO | 2014 | LIBOR + 5.75% | — | 6,750,000 | 6,750,000 | — | |||||||||||||||
Floor 0.29% | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
13,855,000 | 951,853,382 | 901,919,978 | 10,284,537 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Bridge Loans | 13,855,000 | 1,171,783,914 | 1,116,297,532 | 10,284,537 | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Mezzanine Loans: | |||||||||||||||||||||||
Mezzanine loans less than 3% of carrying amount of total loans(6): | |||||||||||||||||||||||
Multi-family | Various | IO / PI | 2014 - 2045 | LIBOR + 3.51% - 12.00% | 493,840,977 | 89,966,018 | 75,832,439 | 447,846 | |||||||||||||||
Fixed 4.00% - 15.00% | |||||||||||||||||||||||
Office | Various | IO / PI | 2015 | Fixed 9.39% - 10.00% | 142,020,551 | 18,779,285 | 18,735,412 | — | |||||||||||||||
Land | CA | IO | 2014 | — | — | 9,332,969 | — | — | |||||||||||||||
Commercial | NY | PI | 2017 | LIBOR + 4.23% | — | 471,900 | 469,618 | — | |||||||||||||||
Floor 0.24% | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Mezzanine Loans | 635,861,528 | 118,550,172 | 95,037,469 | 447,846 | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Type | Location | Periodic | Maturity | Interest Pay | Prior Liens | Face | Carrying | Carrying | |||||||||||||||
Payment | Date(2) | Rate | Amount(4) | Amount(5) | Amount | ||||||||||||||||||
Terms(1) | Index(3) | Subject to | |||||||||||||||||||||
Delinquent | |||||||||||||||||||||||
Interest | |||||||||||||||||||||||
Junior Participations: | |||||||||||||||||||||||
Junior participation loans in excess of 3% of carrying amount of total loans: | |||||||||||||||||||||||
Office | Various | IO | 2016 | LIBOR + 2.00% - 6.71% | 88,500,000 | 95,000,000 | 95,000,000 | — | |||||||||||||||
Junior participation loans less than 3% of carrying amount of total loans(6): | |||||||||||||||||||||||
Multi-family | Various | IO | 2014 | LIBOR + 1.25% | 185,000,000 | 32,000,000 | — | — | |||||||||||||||
Office | Various | IO / PI | 2014 - 2017 | LIBOR + 5.29% | 1,334,319,803 | 86,337,542 | 61,050,989 | — | |||||||||||||||
Fixed 4.00% - 10.07% | |||||||||||||||||||||||
Hotel | Various | IO / PI | 2014 | LIBOR + 1.79% | 46,347,139 | 35,000,000 | 35,000,000 | — | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Junior Participations | 1,654,166,942 | 248,337,542 | 191,050,989 | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Preferred Equity Loans: | |||||||||||||||||||||||
Preferred equity loans less than 3% of carrying amount of total loans(6): | |||||||||||||||||||||||
Multi-family | Various | IO | 2014 - 2020 | LIBOR + 9.85% | 557,207,083 | 102,573,673 | 102,389,316 | — | |||||||||||||||
Fixed 2.36% - 15.00% | |||||||||||||||||||||||
Office | NY | IO | 2014 | LIBOR + 6.75% | — | 2,000,000 | 2,000,000 | — | |||||||||||||||
Floor 0.25% | |||||||||||||||||||||||
Commercial | NY | IO | 2017 | Fixed 12.00% | 22,750,000 | 1,700,000 | 1,700,000 | — | |||||||||||||||
Condo | NY | IO | 2014 | Fixed 17.00% | 25,603,873 | 15,250,000 | 15,224,347 | — | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Preferred Equity Loans | 605,560,956 | 121,523,673 | 121,313,663 | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | $ | 2,909,444,426 | $ | 1,660,195,301 | $ | 1,523,699,653 | $ | 10,732,383 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||
IO =nterest Only, PI =rincipal and Interest. | |||||||||||||||||||||||
-2 | |||||||||||||||||||||||
Maturity date does not include possible extensions. | |||||||||||||||||||||||
-3 | |||||||||||||||||||||||
References to LIBOR are to one-month LIBOR unless specifically stated otherwise. | |||||||||||||||||||||||
-4 | |||||||||||||||||||||||
During 2013, $52.5 million of loans were modified to $51.7 million and $189.5 million of loans were extended. | |||||||||||||||||||||||
-5 | |||||||||||||||||||||||
The federal income tax basis is approximately $1.5 billion. | |||||||||||||||||||||||
-6 | |||||||||||||||||||||||
Individual loans each have a carrying value less than 3% of total loans. | |||||||||||||||||||||||
The following table reconciles the Company's loans and investments carrying amounts for the periods indicated: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Balance at beginning of year | $ | 1,325,667,053 | $ | 1,302,440,660 | $ | 1,414,225,388 | |||||||||||||||||
Additions during period: | |||||||||||||||||||||||
New loan originations | 591,537,200 | 275,633,168 | 206,477,919 | ||||||||||||||||||||
Funding of unfunded loan commitments(1) | 322,926 | 7,271,166 | 3,660,638 | ||||||||||||||||||||
Accretion of unearned revenue | 5,385,999 | 2,794,627 | 2,203,739 | ||||||||||||||||||||
Loan charge-offs | 24,713,459 | 46,585,800 | 27,062,564 | ||||||||||||||||||||
Recoveries of reserves | 2,215,443 | 917,966 | 6,124,954 | ||||||||||||||||||||
Charge-off on loan converted to other assets | 19,000,000 | — | — | ||||||||||||||||||||
Charge-off on loans converted to real estate owned | — | — | 31,710,929 | ||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||
Loan payoffs | (324,358,463 | ) | (171,822,185 | ) | (108,668,220 | ) | |||||||||||||||||
Proceeds and receivables from sale of loans | (4,424,097 | ) | (17,945,000 | ) | (31,450,000 | ) | |||||||||||||||||
Proceeds used against junior loan participations | — | (34,000,000 | ) | — | |||||||||||||||||||
Loan paydowns | (54,261,753 | ) | (13,889,148 | ) | (55,307,130 | ) | |||||||||||||||||
Loss on sale and restructuring of loans | — | — | (4,710,000 | ) | |||||||||||||||||||
Use of loan charge-offs | (24,713,459 | ) | (46,585,800 | ) | (27,062,564 | ) | |||||||||||||||||
Loans converted to real estate owned | — | — | (114,810,469 | ) | |||||||||||||||||||
Loan converted to other assets | (25,000,000 | ) | — | — | |||||||||||||||||||
Provision for loan losses | (6,500,000 | ) | (23,828,224 | ) | (44,810,000 | ) | |||||||||||||||||
Unearned revenue and costs | (5,884,655 | ) | (1,905,977 | ) | (2,207,088 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Balance at end of year | $ | 1,523,699,653 | $ | 1,325,667,053 | $ | 1,302,440,660 | |||||||||||||||||
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| | | | | | | | | | | |||||||||||||
-1 | |||||||||||||||||||||||
In accordance with certain loans and investments, the Company has outstanding unfunded commitments that it is obligated to fund as the borrowers meet certain requirements. Specific requirements include but are not limited to property renovations, building construction, and building conversions based on criteria met by the borrower in accordance with the loan agreements. | |||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Basis of Presentation and Principles of Consolidation | ' |
Basis of Presentation and Principles of Consolidation | |
The accompanying consolidated financial statements include the financial statements of the Company, its wholly owned subsidiaries, and partnerships or other joint ventures in which the Company owns a voting interest of greater than 50 percent, and Variable Interest Entities ("VIEs") of which the Company is the primary beneficiary. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Current accounting guidance requires the Company to present a) assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE, and b) liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of the primary beneficiary. As a result of this guidance, the Company has separately disclosed parenthetically the assets and liabilities of its three collateralized debt obligation ("CDO") and two collateralized loan obligation ("CLO") subsidiaries on its Consolidated Balance Sheets. Entities in which the Company owns a voting interest of 20 percent to 50 percent are accounted for primarily under the equity method. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All significant inter-company transactions and balances have been eliminated in consolidation. | |
The preparation of consolidated financial statements in conformity with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification™, the authoritative reference for accounting principles generally acceptable in the United States ("GAAP"), requires management to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Further, in connection with preparation of the Consolidated Financial Statements, the Company evaluated events subsequent to the balance sheet date of December 31, 2013 through the issuance of the Consolidated Financial Statements. | |
Certain prior year amounts have been reclassified to conform to current period presentation. During the third quarter of 2013, the Company classified a real estate investment that was part of a portfolio of multifamily properties as held-for-sale and during the fourth quarter of 2012, the Company sold a real estate investment that was part of a portfolio of hotel properties, resulting in reclassifications of property operating activity and related depreciation to discontinued operations for all prior periods presented. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
All highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company places its cash and cash equivalents in high quality financial institutions. The consolidated account balances at each institution periodically exceed Federal Deposit Insurance Corporation (FDIC) insurance coverage and the Company believes that this risk is not significant. | |
Restricted Cash | ' |
Restricted Cash | |
Restricted cash primarily represents proceeds from loan repayments on deposit with the trustees for the Company's CDOs which will be used for principal repayments, unfunded loan commitments and interest payments received from loans. All three of the CDOs have reached their replenishment dates and principal repayments are remitted quarterly to the bond holders and the Company in the month following the quarter. See Note 7—"Debt Obligations." Restricted cash is also held by the Company's CLOs which will be used to purchase underlying assets as well as by the Company's real estate owned assets due to escrow requirements. | |
Loans, Investments and Securities | ' |
Loans, Investments and Securities | |
At the time of purchase, the Company designates a security as available-for-sale, held-to-maturity, or trading depending on the Company's ability and intent to hold it to maturity. The Company does not have any securities designated as held-to-maturity or trading as of December 31, 2013. Securities available-for-sale are reported at fair value with the net unrealized gains or losses reported as a component of accumulated other comprehensive loss, while securities held-to-maturity are reported at amortized cost. Unrealized losses that are determined to be other-than-temporary are recognized in earnings up to their credit component. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions. The process may include, but is not limited to, assessment of recent market events and prospects for near-term recovery, assessment of cash flows, internal review of the underlying assets securing the investments, credit of the issuer and the rating of the security, as well as the Company's ability and intent to hold the investment to maturity. Management closely monitors market conditions on which it bases such decisions. | |
The Company also assesses certain of its securities, other than those of high credit quality, to determine whether significant changes in estimated cash flows or unrealized losses on these securities, if any, reflect a decline in value that is other-than-temporary and, accordingly, should be written down to their fair value against earnings. On a quarterly basis, the Company reviews these changes in estimated cash flows, which could occur due to actual prepayment and credit loss experience, to determine if an other-than-temporary impairment is deemed to have occurred. The determination of other-than-temporary impairment is a subjective process requiring judgments and assumptions and is not necessarily intended to indicate a permanent decline in value. The Company calculates a revised yield based on the current amortized cost of the investment, including any other-than-temporary impairments recognized to date, and the revised yield is then applied prospectively to recognize interest income. | |
Securities that are purchased at a discount and that are not of high credit quality at the time of purchase are accounted for as debt securities acquired with deteriorated credit quality. Interest income on these securities is recognized using the effective interest method based on the Company's estimates of expected cash flows to be received, which include assumptions related to fluctuations in prepayment speeds and the timing and amount of credit losses, which are reviewed on an ongoing basis. | |
Loans held for investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of the allowance for loan losses when such loan or investment is deemed to be impaired. The Company invests in preferred equity interests that, in some cases, allow the Company to participate in a percentage of the underlying property's cash flows from operations and proceeds from a sale or refinancing. At the inception of each such investment, management must determine whether such investment should be accounted for as a loan, joint venture or as real estate. To date, management has determined that all such investments are properly accounted for and reported as loans. | |
From time to time, the Company may enter into an agreement to sell a loan. These loans are considered held-for-sale and are valued at the lower of the loan's carrying amount or fair value less costs to sell. For the sale of loans, recognition occurs when ownership passes to the buyer. | |
Impaired Loans, Allowance for Loan Losses, Loss on Sale and Restructuring of Loans and Charge-offs | ' |
Impaired Loans, Allowance for Loan Losses, Loss on Sale and Restructuring of Loans and Charge-offs | |
The Company considers a loan impaired when, based upon current information and events, it is probable that it will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. The Company evaluates each loan in its portfolio on a quarterly basis. The Company's loans are individually specific and unique as it relates to product type, geographic location, and collateral type, as well as to the rights and remedies and the position in the capital structure the Company's loans and investments have in relation to the underlying collateral. The Company evaluates all of this information as well as general market trends related to specific classes of assets, collateral type and geographic locations, when determining the appropriate assumptions such as capitalization and market discount rates, as well as the borrower's operating income and cash flows, in estimating the value of the underlying collateral when determining if a loan is impaired. The Company utilizes internally developed valuation models and techniques primarily consisting of discounted cash flow and direct capitalization models in determining the fair value of the underlying collateral on an individual loan. The Company may also obtain a third party appraisal, which may value the collateral through an "as-is" or "stabilized value" methodology. Such appraisals may be used as an additional source of valuation information only and no adjustments are made to appraisals. Included in the evaluation of the capitalization and market discount rates, the Company considers not only assumptions specific to the collateral but also considers geographical and industry trends that could impact the collateral's value. | |
If upon completion of the valuation, the fair value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, an allowance is created with a corresponding charge to the provision for loan losses. The allowance for each loan is maintained at a level that is believed to be adequate by management to absorb probable losses. | |
Loan terms may be modified if the Company determines that based on the individual circumstances of a loan and the underlying collateral, a modification would more likely increase the total recovery of the combined principal and interest from the loan. Any loan modification is predicated upon a goal of maximizing the collection of the loan. Typical triggers for a modification would include situations where the projected cash flow is insufficient to cover required debt service, when asset performance is lagging the initial projections, where there is a requirement for rebalancing, where there is an impending maturity of the loan, and where there is an actual loan default. Loan terms that have been modified have included, but are not limited to interest rate, maturity date and in certain cases, principal amount. Length and amounts of each modification have varied based on individual circumstances and are determined on a case by case basis. If the loan modification constitutes a concession whereas the Company does not receive ample consideration in return for the modification, and the borrower is experiencing financial difficulties and cannot repay the loan under the current terms, then the modification is considered by the Company to be a troubled debt restructuring. If the Company receives a benefit, either monetary or strategic, and the above criteria are not met, the modification is not considered to be a troubled debt restructuring. The Company records interest on modified loans on an accrual basis to the extent that the modified loan is contractually current. | |
Loss on restructured loans is recorded when the Company has granted a concession to the borrower in the form of principal forgiveness related to the payoff or the substitution or addition of a new debtor for the original borrower or when the Company incurs costs on behalf of the borrower related to the modification, payoff or the substitution or addition of a new debtor for the original borrower. When a loan is restructured, the Company records its investment at net realizable value, taking into account the cost of all concessions at the date of restructuring. The reduction in the recorded investment is recorded as a charge to the Consolidated Statements of Operations in the period in which the loan is restructured. In addition, a gain or loss may be recorded upon the sale of a loan to a third party as a charge to the Consolidated Statements of Operations in the period in which the loan was sold. | |
Charge-offs to the allowance for loan losses occur when losses are confirmed through the receipt of cash or other consideration from the completion of a sale; when a modification or restructuring takes place in which the Company grants a concession to a borrower or agrees to a discount in full or partial satisfaction of the loan; when the Company takes ownership and control of the underlying collateral in full satisfaction of the loan; when loans are reclassified as other investments; or when significant collection efforts have ceased and it is highly likely that a loss has been realized. | |
Real Estate Owned and Held-For-Sale | ' |
Real Estate Owned and Held-For-Sale | |
Real estate owned, shown net of accumulated depreciation and impairment charges, is comprised of real property acquired by foreclosure or through partial or full settlement of mortgage debt. The real estate acquired is recorded at the estimated fair value at the time of acquisition. | |
Costs incurred in connection with the foreclosure of the properties collateralizing the real estate loans are expensed as incurred and costs subsequently incurred to extend the life or improve the assets subsequent to foreclosure are capitalized. | |
The Company allocates the purchase price of its operating properties to land, building, tenant improvements, deferred lease costs for the origination costs of the in-place leases, intangibles for the value of the above or below market leases at fair value and to any other identified intangible assets or liabilities. The Company finalizes its purchase price allocation on these assets within one year of the acquisition date. The Company amortizes the value allocated to the in-place leases over the remaining lease term. The value allocated to the above or below market leases are amortized over the remaining lease term as an adjustment to rental income. | |
Real estate assets, including assets acquired by foreclosure or through partial or full settlement of mortgage debt, that are operated for the production of income are depreciated using the straight-line method over their estimated useful lives. Ordinary repairs and maintenance which are not reimbursed by the tenants are expensed as incurred. Major replacements and betterments which improve or extend the life of the asset are capitalized and depreciated over their estimated useful life. | |
The Company's properties are individually reviewed for impairment each quarter, if events or circumstances change indicating that the carrying amount of the assets may not be recoverable. The Company recognizes impairment if the undiscounted estimated cash flows to be generated by the assets are less than the carrying amount of those assets. Measurement of impairment is based upon the estimated fair value of the asset. Upon evaluating a property for impairment, many factors are considered, including estimated current and expected operating cash flows from the property during the projected holding period, costs necessary to extend the life or improve the asset, expected capitalization rates, projected stabilized net operating income, selling costs, and the ability to hold and dispose of such real estate owned in the ordinary course of business. Valuation adjustments may be necessary in the event that effective interest rates, rent-up periods, future economic conditions, and other relevant factors vary significantly from those assumed in valuing the property. If future evaluations result in a diminution in the value of the property, the reduction will be recognized as an impairment charge at that time. | |
Real estate is classified as held-for-sale when management commits to a plan of sale, the asset is available for immediate sale, there is an active program to locate a buyer, and it is probable the sale will be completed within one year. Properties classified as held-for-sale are not depreciated and the results of their operations are shown in discontinued operations. Real estate assets that are expected to be disposed of are valued, on an individual asset basis, at the lower of their carrying amount or their fair value less costs to sell. | |
The Company recognizes sales of real estate properties upon closing. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized upon closing using the full accrual method when the collectability of the sale price is reasonably assured and the Company is not obligated to perform significant activities after the sale. Profit may be deferred in whole or in part until collectability of the sales price is reasonably assured and the earnings process is complete. | |
Revenue Recognition | ' |
Revenue Recognition | |
Interest income—Interest income is recognized on the accrual basis as it is earned from loans, investments and securities. In certain instances, the borrower pays an additional amount of interest at the time the loan is closed, an origination fee, a prepayment fee and/or deferred interest upon maturity. In some cases, interest income may also include the amortization or accretion of premiums and discounts arising from the purchase or origination of the loan or security. This additional income, net of any direct loan origination costs incurred, is deferred and accreted into interest income on an effective yield or "interest" method adjusted for actual prepayment activity over the life of the related loan or security as a yield adjustment. Income recognition is suspended for loans when, in the opinion of management, a full recovery of all contractual principal is not probable. Income recognition is resumed when the loan becomes contractually current and performance is resumed. The Company records interest income on certain impaired loans to the extent cash is received, in which a loan loss reserve has been recorded, as the borrower continues to make interest payments. The Company recorded loan loss reserves related to these loans as it was deemed that full recovery of principal and interest was not probable. | |
Several of the Company's loans provide for accrual of interest at specified rates, which differ from current payment terms. Interest is recognized on such loans at the accrual rate subject to management's determination that accrued interest and outstanding principal are ultimately collectible, based on the underlying collateral and operations of the asset. If management cannot make this determination, interest income above the current pay rate is recognized only upon actual receipt. | |
Given the transitional nature of some of the Company's real estate loans, the Company may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. The Company will analyze these interest reserves on a periodic basis and determine if any additional interest reserves are needed. Recognition of income on loans with funded interest reserves are accounted for in the same manner as loans without funded interest reserves. The Company will not recognize any interest income on loans in which the borrower has failed to make the contractual interest payment due or has not replenished the interest reserve account. Income from non-performing loans is generally recognized on a cash basis only to the extent it is received. Full income recognition will resume when the loan becomes contractually current and performance has recommenced. | |
Additionally, interest income is recorded when earned from equity participation interests, referred to as equity kickers. These equity kickers have the potential to generate additional revenues to the Company as a result of excess cash flow distributions and/or as appreciated properties are sold or refinanced. | |
Property operating income—Property operating income represents income associated with the operations of commercial real estate properties classified as real estate owned. The Company recognizes revenue for these activities when the fees are fixed or determinable, or are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. | |
Other income, net—Other income, net represents net interest income and gains and losses recorded on the Company's linked transactions, as well, as loan structuring, defeasance, and miscellaneous asset management fees associated with the Company's loans and investments portfolio. The Company recognizes these forms of income when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. | |
Investments in Equity Affiliates | ' |
Investments in Equity Affiliates | |
The Company invests in joint ventures that are formed to acquire, develop and/or sell real estate assets. These joint ventures are not majority owned or controlled by the Company, or are VIEs for which the Company is not the primary beneficiary, and are not consolidated in its financial statements. These investments are recorded under either the equity or cost method of accounting as deemed appropriate. The Company records its share of the net income and losses from the underlying properties of its equity method investments and any other-than-temporary impairment on these investments on a single line item in the Consolidated Statements of Operations as income or losses from equity affiliates. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company has granted certain of its employees, directors, and employees of ACM, stock awards consisting of shares of the Company's common stock that vest immediately or annually over a multi-year period, subject to the recipient's continued service to the Company. The Company records stock-based compensation expense at the grant date fair value of the related stock-based award with subsequent remeasurement for any unvested shares granted to non-employees of the Company with such amounts expensed against earnings, at the grant date (for the portion that vests immediately) or ratably over the respective vesting periods. Dividends are paid on restricted stock as dividends are paid on shares of the Company's common stock whether or not they are vested. Stock-based compensation is disclosed in the Company's Consolidated Statements of Operations under "employee compensation and benefits" for employees and under "selling and administrative" expense for non-employees. | |
Income Taxes | ' |
Income Taxes | |
The Company is organized and conducts its operations to qualify as a REIT and to comply with the provisions of the Internal Revenue Code with respect thereto. A REIT is generally not subject to federal income tax on taxable income that is distributed to its stockholders, provided that the Company distributes at least 90% of its taxable income and meets certain other requirements. Certain REIT income may be subject to state and local income taxes. The Company's assets or operations that would not otherwise comply with the REIT requirements are owned or conducted by the Company's taxable REIT subsidiaries, the income of which is subject to federal and state income tax. Under current federal tax law, the income and any tax on or distribution requirements attributable to certain debt extinguishment transactions realized in 2009 and 2010 have been deferred to future periods at the Company's election. | |
Current accounting guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This guidance also provides clarity on derecognition, classification, interest and penalties, accounting in interim periods and disclosure. | |
Other Comprehensive Income / (Loss) | ' |
Other Comprehensive Income / (Loss) | |
The Company divides comprehensive income or loss into net income (loss) and other comprehensive income (loss), which includes unrealized gains and losses on available-for-sale securities. In addition, to the extent the Company's derivative instruments qualify as hedges, net unrealized gains or losses are reported as a component of accumulated other comprehensive income (loss). | |
Earnings (Loss) Per Share | ' |
Earnings (Loss) Per Share | |
The Company presents both basic and diluted earnings (loss) per share. Basic earnings (loss) per share excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower per share amount. | |
Hedging Activities and Derivatives | ' |
Hedging Activities and Derivatives | |
The Company recognizes all derivatives as either assets or liabilities at fair value and these amounts are recorded in other assets or other liabilities on the Consolidated Balance Sheets. Additionally, the fair value adjustments will affect either accumulated other comprehensive income (loss) until the hedged item is recognized in earnings, or net income (loss) depending on whether the derivative instrument qualifies as a hedge for accounting purposes and, if so, the nature of the hedging activity. The Company uses derivatives for hedging purposes rather than speculation. Fair values are approximated based on current market data received from financial sources that trade such instruments and are based on prevailing market data and derived from third party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions. | |
The Company records all derivatives on the Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The ineffective portion of a derivative's change in fair value is recognized immediately in earnings. | |
In connection with the Company's interest rate risk management, the Company periodically hedges a portion of its interest rate risk by entering into derivative financial instrument contracts. Specifically, the Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of its expected cash receipts and its expected cash payments principally related to its investments and borrowings. The Company's objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has entered into various interest rate swap agreements to hedge its exposure to interest rate risk on (i) variable rate borrowings as it relates to fixed rate loans; (ii) the difference between the CDO investor return being based on the three-month LIBOR index while the supporting assets of the CDO are based on the one-month LIBOR index; and (iii) use of LIBOR rate caps in loan agreements. | |
In the normal course of business, the Company may use a variety of derivative financial instruments to manage, or hedge, interest rate risk. The Company does not use derivatives for trading or speculative purposes. These derivative financial instruments must be effective in reducing its interest rate risk exposure in order to qualify for hedge accounting. When the terms of an underlying transaction are modified, or when the underlying hedged item ceases to exist, all changes in the fair value of the instrument are marked-to-market with changes in value included in net income (loss) for each period until the derivative instrument matures or is settled. Any derivative instrument used for risk management that does not meet the hedging criteria is marked-to-market with the changes in value included in net income (loss). In cases where a derivative financial instrument is terminated early, any gain or loss is generally amortized over the remaining life of the hedged item. | |
In certain circumstances, the Company may finance the purchase of Residential Mortgage Backed Securities ("RMBS") investments through a repurchase agreement with the same counterparty, which may qualify as a linked transaction. If both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed to be linked transactions unless certain criteria are met, and the Company accounts for the purchase of such securities and the repurchase agreement on a combined basis as a forward contract derivative at fair value which is reported in other assets on the Consolidated Balance Sheets with changes in the fair value of the assets and liabilities underlying linked transactions and associated interest income and expense reported in other income on the Consolidated Statements of Operations. The analysis of transactions under these rules requires management's judgment and experience. The fair value of linked transactions reflect the value of the underlying RMBS, linked repurchase agreement borrowings and accrued interest receivable/payable on such instruments. The Company's linked transactions are not designated as hedging instruments and, as a result, the change in the fair value and net interest income from linked transactions is reported in other income on the Consolidated Statements of Operations. | |
The Company has no master netting or similar arrangements and does not offset derivatives. | |
Variable Interest Entities | ' |
Variable Interest Entities | |
The Company has evaluated its loans and investments, mortgage related securities, investments in equity affiliates, junior subordinated notes, CDOs and CLOs, in order to determine if they qualify as VIEs or as variable interests in VIEs. This evaluation resulted in the Company determining that its bridge loans, junior participation loans, mezzanine loans, preferred equity investments, investments in equity affiliates, junior subordinated notes, CDOs, CLOs, and investments in debt securities were potential VIEs or variable interests in VIEs. See Note 9—"Variable Interest Entities" for the Company's evaluation of the periods presented. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In July 2013, the FASB issued updated guidance that resolves the diversity in practice for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new accounting guidance requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of an uncertain tax position. This guidance is effective as of the first quarter of 2014 and the Company is currently evaluating the impact it may have on its Consolidated Financial Statements. | |
In June 2013, the FASB issued updated guidance on the definition and measurement of investment companies. The guidance does not address the applicability of investment company accounting for real estate entities and thus does not have a material effect on the Company's Consolidated Financial Statements. | |
In February 2013, the FASB issued updated guidance on the disclosure of reclassification adjustments related to comprehensive income. The updated guidance requires the Company to disclose, either on the face of the financial statements or in the notes to the financial statements, the financial statement effects on earnings from items that are reclassified out of other comprehensive income, by component. This guidance was effective as of the first quarter of 2013 and its adoption did not have a material effect on the Company's Consolidated Financial Statements. | |
In December 2011, the FASB issued updated guidance on disclosure about offsetting assets and liabilities that amends U.S. GAAP to conform more to the disclosure requirements of IFRS. Under the updated guidance, an entity is required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued further guidance clarifying the scope of disclosures about offsetting assets and liabilities. The scope applies to certain derivatives (including bifurcated embedded derivatives,) repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance was effective as of the first quarter of 2013 and its adoption did not have a material effect on the Company's Consolidated Financial Statements. | |
Loans_and_Investments_Tables
Loans and Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Loans and Investments | ' | ||||||||||||||||||||||
Schedule of composition of loan and investment portfolio | ' | ||||||||||||||||||||||
December 31, | Percent of | Loan | Wtd. Avg. | Wtd. Avg. | First | Last | |||||||||||||||||
2013 | Total | Count | Pay Rate(1) | Remaining | Dollar | Dollar | |||||||||||||||||
Months to | LTV | LTV | |||||||||||||||||||||
Maturity | Ratio(2) | Ratio(3) | |||||||||||||||||||||
Bridge loans | $ | 1,171,783,914 | 71 | % | 95 | 5.11 | % | 18.5 | 0 | % | 76 | % | |||||||||||
Mezzanine loans | 118,550,172 | 7 | % | 27 | 7.02 | % | 58.2 | 56 | % | 83 | % | ||||||||||||
Junior participation loans | 248,337,542 | 15 | % | 7 | 4.21 | % | 19.6 | 60 | % | 81 | % | ||||||||||||
Preferred equity investments | 121,523,673 | 7 | % | 15 | 7.2 | % | 45.5 | 58 | % | 79 | % | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
1,660,195,301 | 100 | % | 144 | 5.26 | % | 23.5 | 17 | % | 77 | % | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | (14,218,237 | ) | |||||||||||||||||||||
Allowance for loan losses | (122,277,411 | ) | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Loans and investments, net | $ | 1,523,699,653 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
December 31, | Percent of | Loan | Wtd. Avg. | Wtd. Avg. | First | Last | |||||||||||||||||
2012 | Total | Count | Pay Rate(1) | Remaining | Dollar | Dollar | |||||||||||||||||
Months to | LTV | LTV | |||||||||||||||||||||
Maturity | Ratio(2) | Ratio(3) | |||||||||||||||||||||
Bridge loans | $ | 1,006,726,838 | 67 | % | 83 | 4.87 | % | 25 | 0 | % | 75 | % | |||||||||||
Mezzanine loans | 112,843,639 | 7 | % | 24 | 4.94 | % | 62.6 | 59 | % | 88 | % | ||||||||||||
Junior participation loans | 280,662,498 | 19 | % | 9 | 3.9 | % | 29.1 | 59 | % | 79 | % | ||||||||||||
Preferred equity investments | 100,823,672 | 7 | % | 12 | 6.04 | % | 72.2 | 77 | % | 97 | % | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
1,501,056,647 | 100 | % | 128 | 4.77 | % | 31.8 | 21 | % | 80 | % | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Unearned revenue | (13,683,281 | ) | |||||||||||||||||||||
Allowance for loan losses | (161,706,313 | ) | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Loans and investments, net | $ | 1,325,667,053 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||
"Weighted Average Pay Rate" is a weighted average, based on the unpaid principal balances of each loan in the Company's portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest "Accrual Rate" to be paid at the maturity are not included in the weighted average pay rate as shown in the table. | |||||||||||||||||||||||
-2 | |||||||||||||||||||||||
The "First Dollar LTV Ratio" is calculated by comparing the total of the Company's senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will absorb a total loss of its position. | |||||||||||||||||||||||
-3 | |||||||||||||||||||||||
The "Last Dollar LTV Ratio" is calculated by comparing the total of the carrying value of the Company's loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which the Company will initially absorb a loss. | |||||||||||||||||||||||
Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class | ' | ||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Asset Class | Unpaid | Percentage | Wtd. Avg. | First Dollar | Last Dollar | ||||||||||||||||||
Principal | of Portfolio | Internal | LTV Ratio | LTV Ratio | |||||||||||||||||||
Balance | Risk Rating | ||||||||||||||||||||||
Multi-family | $ | 1,068,529,815 | 64.4 | % | 3.3 | 14 | % | 75 | % | ||||||||||||||
Office | 358,832,526 | 21.6 | % | 3.2 | 32 | % | 82 | % | |||||||||||||||
Land | 116,751,563 | 7 | % | 4 | 3 | % | 88 | % | |||||||||||||||
Hotel | 69,181,252 | 4.2 | % | 3.8 | 26 | % | 84 | % | |||||||||||||||
Commercial | 24,900,145 | 1.5 | % | 3 | 3 | % | 49 | % | |||||||||||||||
Condo | 15,250,000 | 0.9 | % | 3.7 | 41 | % | 65 | % | |||||||||||||||
Retail | 6,750,000 | 0.4 | % | 2.5 | 0 | % | 63 | % | |||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 1,660,195,301 | 100 | % | 3.3 | 17 | % | 77 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
December 31, 2012 | |||||||||||||||||||||||
Asset Class | Unpaid | Percentage | Wtd. Avg. | First Dollar | Last Dollar | ||||||||||||||||||
Principal | of Portfolio | Internal | LTV Ratio | LTV Ratio | |||||||||||||||||||
Balance | Risk Rating | ||||||||||||||||||||||
Multi-family | $ | 771,140,021 | 51.4 | % | 3.4 | 19 | % | 79 | % | ||||||||||||||
Office | 415,162,338 | 27.6 | % | 3.2 | 31 | % | 81 | % | |||||||||||||||
Land | 140,745,980 | 9.4 | % | 4.2 | 0 | % | 86 | % | |||||||||||||||
Hotel | 105,613,791 | 7 | % | 3.6 | 22 | % | 78 | % | |||||||||||||||
Commercial | 23,794,517 | 1.6 | % | 3 | 0 | % | 50 | % | |||||||||||||||
Condo | 25,250,000 | 1.7 | % | 4.2 | 58 | % | 90 | % | |||||||||||||||
Retail | 19,350,000 | 1.3 | % | 2.9 | 0 | % | 61 | % | |||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 1,501,056,647 | 100 | % | 3.4 | 21 | % | 80 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Summary of the changes in the allowance for loan losses | ' | ||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||
Allowance at beginning of the period | $ | 161,706,313 | $ | 185,381,855 | $ | 205,470,302 | |||||||||||||||||
Provision for loan losses | 6,500,000 | 23,828,224 | 44,810,000 | ||||||||||||||||||||
Charge-offs | (24,713,459 | ) | (46,585,800 | ) | (27,062,564 | ) | |||||||||||||||||
Charge-off on loan converted to other assets | (19,000,000 | ) | — | — | |||||||||||||||||||
Charge-off on loans converted to real estate owned, net | — | — | (31,710,929 | ) | |||||||||||||||||||
Recoveries of reserves | (2,215,443 | ) | (917,966 | ) | (6,124,954 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Allowance at end of the period | $ | 122,277,411 | $ | 161,706,313 | $ | 185,381,855 | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Summary of charge-offs and recoveries | ' | ||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2012 | |||||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||
Multi-family | $ | (4,789,815 | ) | $ | (10,773,141 | ) | $ | (38,308,816 | ) | ||||||||||||||
Office | (6,252,129 | ) | (5,812,659 | ) | (7,114,677 | ) | |||||||||||||||||
Land | (19,000,000 | ) | — | — | |||||||||||||||||||
Hotel | (3,671,515 | ) | (30,000,000 | ) | (13,350,000 | ) | |||||||||||||||||
Condo | (10,000,000 | ) | — | — | |||||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | (43,713,459 | ) | $ | (46,585,800 | ) | $ | (58,773,493 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Recoveries: | |||||||||||||||||||||||
Multi-family | $ | (1,510,949 | ) | $ | (121,898 | ) | $ | (2,243,197 | ) | ||||||||||||||
Office | (704,494 | ) | (796,068 | ) | (3,881,757 | ) | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
Total | $ | (2,215,443 | ) | $ | (917,966 | ) | $ | (6,124,954 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Net Charge-offs | $ | (41,498,016 | ) | $ | (45,667,834 | ) | $ | (52,648,539 | ) | ||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Ratio of net charge-offs during the period to average loans and investments outstanding during the period | 2.6 | % | 3 | % | 3.4 | % | |||||||||||||||||
| | | | | | | | | | | |||||||||||||
| | | | | | | | | | | |||||||||||||
Summary of the company's impaired loans by asset class | ' | ||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Asset Class | Unpaid | Carrying | Allowance for | Average Recorded | Interest Income | ||||||||||||||||||
Principal Balance | Value(1) | Loan Losses | Investment(2) | Recognized | |||||||||||||||||||
Multi-family | $ | 65,735,773 | $ | 65,186,623 | $ | 50,786,697 | $ | 62,602,118 | $ | 2,566,914 | |||||||||||||
Office | 36,086,582 | 29,474,065 | 23,972,444 | 37,224,695 | 1,585,520 | ||||||||||||||||||
Land | 116,085,950 | 112,810,558 | 47,518,270 | 127,561,228 | — | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 217,908,305 | $ | 207,471,246 | $ | 122,277,411 | $ | 227,388,042 | $ | 4,152,434 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Asset Class | Unpaid | Carrying | Allowance for | Average Recorded | Interest Income | ||||||||||||||||||
Principal Balance | Value(1) | Loan Losses | Investment(2) | Recognized | |||||||||||||||||||
Multi-family | $ | 59,468,463 | $ | 59,277,872 | $ | 53,587,461 | $ | 63,331,880 | $ | 794,633 | |||||||||||||
Office | 38,362,808 | 30,545,156 | 28,929,067 | 41,732,535 | 1,419,615 | ||||||||||||||||||
Land | 139,036,505 | 136,716,617 | 65,518,270 | 136,185,941 | — | ||||||||||||||||||
Hotel | 3,671,507 | 3,671,507 | 3,671,515 | 18,671,507 | 596,643 | ||||||||||||||||||
Condo | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 173,920 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | $ | 250,539,283 | $ | 240,211,152 | $ | 161,706,313 | $ | 269,921,863 | $ | 2,984,811 | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
-1 | |||||||||||||||||||||||
Represents the unpaid principal balance of impaired loans less unearned revenue and other holdbacks and adjustments by asset class. | |||||||||||||||||||||||
-2 | |||||||||||||||||||||||
Represents an average of the beginning and ending unpaid principal balance of each asset class. | |||||||||||||||||||||||
Summary of the company's non-performing loans by asset class | ' | ||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
Asset Class | Carrying | Less Than | Greater | Carrying | Less Than | Greater | |||||||||||||||||
Value | 90 Days | Than | Value | 90 Days | Than | ||||||||||||||||||
Past Due | 90 Days | Past Due | 90 Days | ||||||||||||||||||||
Past Due | Past Due | ||||||||||||||||||||||
Multi-family | $ | 42,054,539 | $ | 32,000,000 | $ | 10,054,539 | $ | 10,951,549 | $ | — | $ | 10,951,549 | |||||||||||
Office | 8,277,844 | — | 8,277,844 | 10,373,229 | — | 10,373,229 | |||||||||||||||||
Land | — | — | — | 24,999,972 | — | 24,999,972 | |||||||||||||||||
Hotel | — | — | — | 3,671,507 | — | 3,671,507 | |||||||||||||||||
Condo | — | — | — | 10,000,000 | — | 10,000,000 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
Total | $ | 50,332,383 | $ | 32,000,000 | $ | 18,332,383 | $ | 59,996,257 | $ | — | $ | 59,996,257 | |||||||||||
| | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | ||||
Summary of loan modifications and extensions by asset class that the entity considered to be troubled debt restructurings by asset class | ' | ||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||
Asset Class | Number | Original | Original | Modified | Modified | ||||||||||||||||||
of Loans | Unpaid | Weighted | Unpaid | Weighted | |||||||||||||||||||
Principal | Average | Principal | Average | ||||||||||||||||||||
Balance | Rate of | Balance | Rate of | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Multi-family | 1 | $ | 6,192,666 | 5.96 | % | $ | 6,192,666 | 5.96 | % | ||||||||||||||
Office | 1 | 8,400,000 | 8.24 | % | 8,400,000 | 8.24 | % | ||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | 2 | $ | 14,592,666 | 7.27 | % | $ | 14,592,666 | 7.27 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||
Asset Class | Number | Original | Original | Modified | Modified | ||||||||||||||||||
of Loans | Unpaid | Weighted | Unpaid | Weighted | |||||||||||||||||||
Principal | Average | Principal | Average | ||||||||||||||||||||
Balance | Rate of | Balance | Rate of | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||
Multi-family | 1 | $ | 32,000,000 | 2 | % | $ | 32,000,000 | 1.13 | % | ||||||||||||||
Office | 1 | 25,361,932 | 5.32 | % | 25,332,451 | 4 | % | ||||||||||||||||
Land | 1 | 2,818,270 | — | 2,818,270 | — | ||||||||||||||||||
Hotel | 1 | 35,000,000 | 2 | % | 35,000,000 | 2 | % | ||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
Total | 4 | $ | 95,180,202 | 2.83 | % | $ | 95,150,721 | 2.18 | % | ||||||||||||||
| | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | |||||||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Securities | ' | |||||||||||||||||||
Summary of the company's securities classified as available-for-sale | ' | |||||||||||||||||||
The following is a summary of the Company's securities classified as available-for-sale at December 31, 2013: | ||||||||||||||||||||
Face | Amortized | Cumulative | Cumulative | Carrying | ||||||||||||||||
Value | Cost | Unrealized | Unrealized | Value / | ||||||||||||||||
Gain | Loss | Estimated | ||||||||||||||||||
Fair Value | ||||||||||||||||||||
Residential mortgage-backed security (RMBS) | $ | 39,013,690 | $ | 34,049,310 | $ | 437,774 | $ | (6,298 | ) | $ | 34,480,786 | |||||||||
Commercial mortgage-backed security (CMBS) | 2,100,000 | 2,100,000 | — | — | 2,100,000 | |||||||||||||||
Common equity securities | — | 58,789 | 676,077 | — | 734,866 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total available-for-sale securities | $ | 41,113,690 | $ | 36,208,099 | $ | 1,113,851 | $ | (6,298 | ) | $ | 37,315,652 | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
The following is a summary of the Company's securities classified as available-for-sale at December 31, 2012: | ||||||||||||||||||||
Face | Amortized | Cumulative | Carrying | |||||||||||||||||
Value | Cost | Unrealized | Value / | |||||||||||||||||
Gain | Estimated | |||||||||||||||||||
Fair Value | ||||||||||||||||||||
Collateralized debt obligation (CDO) bond | $ | 10,000,000 | $ | 1,000,000 | $ | 100,000 | $ | 1,100,000 | ||||||||||||
Commercial mortgage-backed security (CMBS) | 2,100,000 | 2,100,000 | — | 2,100,000 | ||||||||||||||||
Common equity securities | — | 58,789 | 293,947 | 352,736 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total available-for-sale securities | $ | 12,100,000 | $ | 3,158,789 | $ | 393,947 | $ | 3,552,736 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Summary of the underlying credit rating of the Company's available-for-sale securities | ' | |||||||||||||||||||
The following is a summary of the underlying credit rating of the Company's available-for-sale debt securities at December 31, 2013 and 2012: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Rating(1) | # | Amortized | Percent | # | Amortized | Percent | ||||||||||||||
Cost | of Total | Cost | of Total | |||||||||||||||||
AA+ | 1 | $ | 93,715 | — | — | $ | — | — | ||||||||||||
CCC | 1 | 18,417,402 | 51 | % | — | — | — | |||||||||||||
CCC- | 2 | 2,100,000 | 6 | % | 2 | 3,100,000 | 100 | % | ||||||||||||
NR | 7 | 15,538,193 | 43 | % | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
11 | $ | 36,149,310 | 100 | % | 2 | $ | 3,100,000 | 100 | % | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Based on the rating published by Standard & Poor's for each security. NR stands for "not rated." | ||||||||||||||||||||
Summary of the company's securities classified as held-to-maturity | ' | |||||||||||||||||||
The following is a summary of the Company's securities classified as held-to-maturity at December 31, 2012: | ||||||||||||||||||||
Face | Amortized | Carrying | Unrealized | Unrealized | Estimated | |||||||||||||||
Value | Cost | Value | Gain | Loss | Fair Value | |||||||||||||||
Residential mortgage-backed securities (RMBS) | $ | 44,431,768 | $ | 42,986,980 | $ | 42,986,980 | $ | 169,450 | $ | (3,306 | ) | $ | 43,153,124 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Summary of the underlying credit ratings of the company's RMBS and CMBS investments held-to-maturity | ' | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Rating(1) | # | Amortized | Percent | |||||||||||||||||
Cost | of Total | |||||||||||||||||||
AAA | 2 | $ | 407,514 | 1 | % | |||||||||||||||
AA | 1 | 167,196 | 1 | % | ||||||||||||||||
BB | 3 | 8,742,011 | 20 | % | ||||||||||||||||
D | 1 | 9,496,933 | 22 | % | ||||||||||||||||
NR | 9 | 24,173,326 | 56 | % | ||||||||||||||||
| | | | | | | | | | | ||||||||||
16 | $ | 42,986,980 | 100 | % | ||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
-1 | ||||||||||||||||||||
Based on the rating published by Standard & Poor's for each security. NR stands for "not rated". | ||||||||||||||||||||
Investments_in_Equity_Affiliat1
Investments in Equity Affiliates (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Investments in Equity Affiliates | ' | ||||||||||
Summary of the company's investments in equity affiliates | ' | ||||||||||
Investments in Equity | Unpaid Principal | ||||||||||
Affiliates at | Balance of Loans | ||||||||||
to Equity | |||||||||||
Affiliates at | |||||||||||
Equity Affiliates | December 31, | December 31, | December 31, | ||||||||
2013 | 2012 | 2013 | |||||||||
Lightstone Value Plus REIT L.P | $ | 1,894,727 | $ | 55,988,409 | $ | — | |||||
West Shore Café | 1,690,280 | 1,821,536 | — | ||||||||
Issuers of Junior Subordinated Notes | 578,000 | 578,000 | — | ||||||||
JT Prime | 425,000 | 851,000 | — | ||||||||
930 Flushing & 80 Evergreen | 92,199 | 342,197 | 23,200,145 | ||||||||
Lexford Portfolio | 100 | 100 | 116,131,813 | ||||||||
St. John's Development | — | — | — | ||||||||
450 West 33rd Street | — | — | — | ||||||||
Ritz-Carlton Club | — | — | — | ||||||||
| | | | | | | | | | | |
Total | $ | 4,680,306 | $ | 59,581,242 | $ | 139,331,958 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary of condensed combined balance sheets for the Company's unconsolidated investments in equity affiliates | ' | ||||||||||
The condensed combined balance sheets for the Company's unconsolidated investments in equity affiliates accounted for under the equity method at December 31, 2013 and 2012 are as follows (amounts in thousands): | |||||||||||
December 31, | |||||||||||
Condensed Combined Balance Sheets | 2013 | 2012 | |||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 13,101 | $ | 4,727 | |||||||
Real estate assets | 697,484 | 699,474 | |||||||||
Other assets | 19,618 | 22,473 | |||||||||
| | | | | | | | ||||
Total assets | $ | 730,203 | $ | 726,674 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Liabilities: | |||||||||||
Notes payable | $ | 734,693 | $ | 737,350 | |||||||
Other liabilities | 19,607 | 23,796 | |||||||||
| | | | | | | | ||||
Total liabilities | 754,300 | 761,146 | |||||||||
| | | | | | | | ||||
Stockholders' equity Arbor(1) | 4,102 | 3,015 | |||||||||
Stockholders' (deficit) equity | (28,199 | ) | (37,487 | ) | |||||||
| | | | | | | | ||||
Total stockholders' (deficit) equity | (24,097 | ) | (34,472 | ) | |||||||
| | | | | | | | ||||
Total liabilities and deficit | $ | 730,203 | $ | 726,674 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
-1 | |||||||||||
Combined with $0.6 million of equity relating to the issuance of junior subordinated notes, equals $4.7 million of investments in equity affiliates, at December 31, 2013. Combined with $56.0 million of cost method investments and $0.6 million of equity relating to the issuance of junior subordinated notes, equals $59.6 million of investments in equity affiliates, at December 31, 2012. | |||||||||||
Summary of condensed combined statements of operations for the Company's unconsolidated investments in equity affiliates | ' | ||||||||||
The condensed combined statements of operations for the Company's unconsolidated investments in equity affiliates accounted for under the equity method for the years ended December 31, 2013, 2012 and 2011, are as follows (amounts in thousands): | |||||||||||
Year Ended | |||||||||||
Statements of Operations: | 2013 | 2012(1) | 2011 | ||||||||
Revenue: | |||||||||||
Rental income | $ | 85,551 | $ | 80,472 | $ | 10,626 | |||||
Interest income | 478 | 813 | 814 | ||||||||
Operating income | 5,709 | 8,619 | 13,299 | ||||||||
Reimbursement income | 6,653 | 5,427 | 461 | ||||||||
Other income | 6,686 | 6,436 | 3,268 | ||||||||
| | | | | | | | | | | |
Total revenues | 105,077 | 101,767 | 28,468 | ||||||||
| | | | | | | | | | | |
Expenses: | |||||||||||
Operating expenses | 58,265 | 60,257 | 16,749 | ||||||||
Interest expense | 36,061 | 36,315 | 6,944 | ||||||||
Depreciation and amortization | 23,345 | 22,283 | 2,725 | ||||||||
Other expenses | 493 | 27 | 619 | ||||||||
| | | | | | | | | | | |
Total expenses | 118,164 | 118,882 | 27,037 | ||||||||
| | | | | | | | | | | |
Net (loss) income | $ | (13,087 | ) | $ | (17,115 | ) | $ | 1,431 | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Arbor's Share of net (loss) income. | $ | (204 | ) | $ | (698 | ) | $ | (218 | )(2) | ||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
The increase in revenues, expenses and net loss was due to the Lexford investment. See Note 15—"Related Party Transactions" for more details. | |||||||||||
-2 | |||||||||||
Combined with a $3.9 million gain on the sale of an equity method investment, equals $3.7 million of income from equity affiliates for the year ended December 31, 2011. | |||||||||||
Real_Estate_Owned_and_HeldForS1
Real Estate Owned and Held-For-Sale (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Real Estate Owned and Held-For-Sale | ' | |||||||||||||||||||
Schedule of real estate owned | ' | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Multifamily | Hotel | Total | Multifamily | Hotel | Total | |||||||||||||||
Portfolio | Portfolio | Portfolio | Portfolio | |||||||||||||||||
Land | $ | 11,382,579 | $ | 10,893,651 | $ | 22,276,230 | $ | 15,651,047 | $ | 10,893,651 | $ | 26,544,698 | ||||||||
Building and intangible assets | 46,115,430 | 61,632,645 | 107,748,075 | 52,747,149 | 56,946,750 | 109,693,899 | ||||||||||||||
Less: | ||||||||||||||||||||
Accumulated depreciation and amortization | (8,598,915 | ) | (9,707,213 | ) | (18,306,128 | ) | (6,216,409 | ) | (5,873,989 | ) | (12,090,398 | ) | ||||||||
| | | | | | | | | | | | | | | | | | | | |
Real estate owned, net | $ | 48,899,094 | $ | 62,819,083 | $ | 111,718,177 | $ | 62,181,787 | $ | 61,966,412 | $ | 124,148,199 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of real estate held-for-sale | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Revenue: | ||||||||||||||||||||
Property operating income | $ | 2,297,902 | $ | 3,420,885 | $ | 5,011,311 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Property operating expense | 2,159,805 | 2,964,038 | 5,399,589 | |||||||||||||||||
Depreciation | 582,220 | 576,596 | 1,161,614 | |||||||||||||||||
Impairment loss on real estate held-for-sale | — | — | (1,450,000 | ) | ||||||||||||||||
Gain on reversal of accrued liabilities | — | 1,175,120 | — | |||||||||||||||||
Gain on sale of real estate held-for-sale | — | 3,953,455 | — | |||||||||||||||||
| | | | | | | | | | | ||||||||||
(Loss) income from discontinued operations | $ | (444,123 | ) | $ | 5,008,826 | $ | (2,999,892 | ) | ||||||||||||
| | | | | | | | | | |
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Repurchase agreements and credit facilities | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Schedule of borrowings | ' | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Debt | Collateral | Weighted | Debt | Collateral | Weighted | ||||||||||||||||||||||||
Carrying | Carrying | Average | Carrying | Carrying | Average | ||||||||||||||||||||||||
Value | Value | Note Rate | Value | Value | Note Rate | ||||||||||||||||||||||||
Repurchase agreement | $ | 12,497,000 | $ | 15,536,049 | 1.75 | % | $ | 35,072,000 | $ | 43,604,281 | 1.75 | % | |||||||||||||||||
Repurchase agreement | 14,425,553 | 18,944,735 | 2 | % | 689,619 | 827,488 | 1.73 | % | |||||||||||||||||||||
$75.0 million warehousing credit facility | 33,300,540 | 45,705,813 | 2.46 | % | 50,000,000 | 70,075,000 | 3 | % | |||||||||||||||||||||
$50.0 million warehousing credit facility | 30,838,180 | 46,774,000 | 2.7 | % | — | — | — | ||||||||||||||||||||||
$40.0 million warehousing credit facility | 15,063,750 | 21,800,000 | 2.2 | % | — | — | — | ||||||||||||||||||||||
$33.0 million warehousing credit facility | 33,000,000 | 55,000,000 | 2.45 | % | — | — | — | ||||||||||||||||||||||
$17.3 million warehousing credit facility | — | — | — | 17,300,000 | 30,000,000 | 3 | % | ||||||||||||||||||||||
$12.6 million warehousing credit facility | — | — | — | 12,600,000 | 18,000,000 | 3 | % | ||||||||||||||||||||||
$20.0 million revolving credit facility | 20,000,000 | — | 8.5 | % | 15,000,000 | — | 8.5 | % | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total repurchase agreements and credit facilities | $ | 159,125,023 | $ | 203,760,597 | 3.16 | % | $ | 130,661,619 | $ | 162,506,769 | 3.25 | % | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Collateralized debt obligations | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Schedule of borrowings | ' | ||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's collateralized debt obligations as of December 31, 2013: | |||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
Debt | Loans | Securities | Cash | ||||||||||||||||||||||||||
Face | Carrying | Unpaid | Carrying | Face | Carrying | Fair | Restricted | Collateral | |||||||||||||||||||||
Value | Value | Principal(1) | Value(1) | Value | Value | Value | Cash(3) | At-Risk(4) | |||||||||||||||||||||
CDO I | $ | 126,753,077 | $ | 132,399,560 | $ | 284,758,473 | $ | 237,194,618 | $ | — | $ | — | $ | — | $ | 79,986 | $ | 179,466,954 | |||||||||||
CDO II | 196,046,587 | 201,847,417 | 362,150,693 | 312,859,875 | — | — | — | 1,719,760 | 187,213,841 | ||||||||||||||||||||
CDO III | 296,754,194 | 305,376,004 | 395,783,494 | 365,236,505 | — | — | — | 23,607,813 | 240,503,823 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total CDOs | $ | 619,553,858 | $ | 639,622,981 | $ | 1,042,692,660 | $ | 915,290,998 | $ | — | $ | — | $ | — | $ | 25,407,559 | $ | 607,184,618 | |||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table outlines borrowings and the corresponding collateral under the Company's collateralized debt obligations as of December 31, 2012: | |||||||||||||||||||||||||||||
Collateral | |||||||||||||||||||||||||||||
Debt | Loans | Securities | Cash | ||||||||||||||||||||||||||
Face | Carrying | Unpaid | Carrying | Face | Carrying | Fair | Restricted | Collateral | |||||||||||||||||||||
Value | Value | Principal(1) | Value(1) | Value | Value | Value(2) | Cash(3) | At-Risk(4) | |||||||||||||||||||||
CDO I | $ | 133,994,136 | $ | 139,856,472 | $ | 299,881,599 | $ | 238,852,726 | $ | — | $ | — | $ | — | $ | 1,036,155 | $ | 207,772,049 | |||||||||||
CDO II | 231,186,301 | 237,209,429 | 395,266,909 | 345,919,525 | 10,000,000 | 1,100,000 | 1,100,000 | 470,952 | 188,271,174 | ||||||||||||||||||||
CDO III | 426,458,233 | 435,386,944 | 515,403,735 | 485,235,214 | — | — | — | 24,819,361 | 244,697,945 | ||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total CDOs | $ | 791,638,670 | $ | 812,452,845 | $ | 1,210,552,243 | $ | 1,070,007,465 | $ | 10,000,000 | $ | 1,100,000 | $ | 1,100,000 | $ | 26,326,468 | $ | 640,741,168 | |||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||||||||
Amounts include loans to real estate assets consolidated by the Company that were reclassified to real estate owned and held-for-sale, net on the Consolidated Financial Statements. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
The security with a fair value of $1.1 million was rated a CCC- at December 31, 2012 by Standard & Poor's and was sold in May 2013. | |||||||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||||
Represents restricted cash held for principal repayments in the CDOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. | |||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||
Amounts represent the face value of collateral in default, as defined by the CDO indenture, as well as assets deemed to be "credit risk." Credit risk assets are reported by each of the CDOs and are generally defined as one that, in the CDO collateral manager's reasonable business judgment, has a significant risk of declining in credit quality or, with a passage of time, becoming a defaulted asset. | |||||||||||||||||||||||||||||
Schedule of face amount and gain on extinguishment of the company's CDO bonds repurchased by bond class | ' | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Class: | Face | Gain | Face | Gain | Face | Gain | |||||||||||||||||||||||
Amount | Amount | Amount | |||||||||||||||||||||||||||
B | $ | — | $ | — | $ | 13,000,000 | $ | 4,615,000 | $ | 5,654,540 | $ | 2,086,799 | |||||||||||||||||
C | — | — | 3,329,509 | 1,200,182 | 7,005,291 | 3,502,815 | |||||||||||||||||||||||
D | — | — | 13,350,000 | 5,819,066 | 2,433,912 | 1,428,950 | |||||||||||||||||||||||
E | — | — | 13,765,276 | 6,445,033 | 2,291,855 | 1,403,761 | |||||||||||||||||||||||
F | — | — | 9,708,556 | 5,048,417 | 3,918,343 | 2,455,892 | |||||||||||||||||||||||
G | — | — | 8,672,039 | 4,777,138 | — | — | |||||||||||||||||||||||
H | 9,935,088 | 4,930,772 | 4,403,771 | 2,554,187 | — | — | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total | $ | 9,935,088 | $ | 4,930,772 | $ | 66,229,151 | $ | 30,459,023 | $ | 21,303,941 | $ | 10,878,217 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Collateralized loan obligations | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Schedule of borrowings | ' | ||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's CLOs as of December 31, 2013: | |||||||||||||||||||||||||||||
Debt | Collateral | ||||||||||||||||||||||||||||
Loans | Cash | ||||||||||||||||||||||||||||
Face Value | Carrying | Unpaid | Carrying | Restricted | Collateral | ||||||||||||||||||||||||
Value | Principal | Value | Cash(1) | At-Risk(2) | |||||||||||||||||||||||||
CLO I | $ | 87,500,000 | $ | 87,500,000 | $ | 114,414,154 | $ | 113,940,857 | $ | 10,672,496 | $ | — | |||||||||||||||||
CLO II | 177,000,000 | 177,000,000 | 255,016,564 | 253,989,391 | 4,621,675 | — | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
Total CLOs | $ | 264,500,000 | $ | 264,500,000 | $ | 369,430,718 | $ | 367,930,248 | $ | 15,294,171 | $ | — | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | ||||||||||
-1 | |||||||||||||||||||||||||||||
Represents restricted cash held for principal repayments in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
Amounts represent the face value of collateral in default, as defined by the CLO indenture, as well as assets deemed to be "credit risk." Credit risk assets are reported by each of the CLOs and are generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of declining in credit quality or, with a passage of time, becoming a defaulted asset. | |||||||||||||||||||||||||||||
The following table outlines borrowings and the corresponding collateral under the Company's CLOs as of December 31, 2012: | |||||||||||||||||||||||||||||
Debt | Collateral | ||||||||||||||||||||||||||||
Loans | Cash | ||||||||||||||||||||||||||||
Face Value | Carrying | Unpaid | Carrying | Restricted | |||||||||||||||||||||||||
Value | Principal | Value | Cash | ||||||||||||||||||||||||||
CLO I | $ | 87,500,000 | $ | 87,500,000 | $ | 125,086,650 | $ | 124,525,103 | $ | — | |||||||||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | | | | |||||||||||||
Notes payable | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Schedule of borrowings | ' | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Debt | Collateral | Debt | Collateral | ||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||
Note payable relating to investment in equity affiliate, expiration July 2016, interest is fixed, the weighted average note rate was 4.06% | $ | — | $ | — | $ | 50,157,708 | $ | 55,988,411 | |||||||||||||||||||||
Junior loan participation, secured by the Company's interest in a first mortgage loan with a principal balance of $1.3 million, participation interest was based on a portion of the interest received from the loan which has a fixed rate of 9.57% | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | |||||||||||||||||||||||||
Junior loan participation, maturity of March 2014, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 15.00% | 450,000 | 450,000 | — | — | |||||||||||||||||||||||||
Junior loan participation, maturity of October 2018, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 13.00% | 750,000 | 750,000 | — | — | |||||||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
Total notes payable | $ | 2,500,000 | $ | 2,500,000 | $ | 51,457,708 | $ | 57,288,411 | |||||||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
| | | | | | | | | | | | | | ||||||||||||||||
Collateralized debt obligations and collateralized loan obligations | ' | ||||||||||||||||||||||||||||
Debt Obligations | ' | ||||||||||||||||||||||||||||
Summary of the company's CDO and CLO compliance tests as of the most recent determination dates | ' | ||||||||||||||||||||||||||||
The chart below is a summary of the Company's CDO and CLO compliance tests as of the most recent determination dates in January 2014: | |||||||||||||||||||||||||||||
Cash Flow Triggers | CDO I | CDO II | CDO III | CLO I | CLO II | ||||||||||||||||||||||||
Overcollateralization(1) | |||||||||||||||||||||||||||||
Current | 167.15 | % | 137.87 | % | 107.8 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Limit | 145 | % | 127.3 | % | 105.6 | % | 137.86 | % | 144.25 | % | |||||||||||||||||||
Pass / Fail | Pass | Pass | Pass | Pass | Pass | ||||||||||||||||||||||||
Interest Coverage(2) | |||||||||||||||||||||||||||||
Current | 547.23 | % | 430.96 | % | 779.18 | % | 289.34 | % | 325.74 | % | |||||||||||||||||||
Limit | 160 | % | 147.3 | % | 105.6 | % | 120 | % | 120 | % | |||||||||||||||||||
Pass / Fail | Pass | Pass | Pass | Pass | Pass | ||||||||||||||||||||||||
-1 | |||||||||||||||||||||||||||||
The overcollateralization ratio divides the total principal balance of all collateral in the CDO and CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset's principal balance for purposes of the overcollateralization test is the lesser of the asset's market value or the principal balance of the defaulted asset multiplied by the asset's recovery rate which is determined by the rating agencies. Rating downgrades of CDO and CLO collateral will generally not have a direct impact on the principal balance of a CDO and CLO asset for purposes of calculating the CDO and CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CDO and CLO vehicle. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by the Company. | |||||||||||||||||||||||||||||
Summary of the Company's CDO and CLO overcollateralization ratios | ' | ||||||||||||||||||||||||||||
Determination Date | CDO I | CDO II | CDO III | CLO I | CLO II | ||||||||||||||||||||||||
Jan-14 | 167.15 | % | 137.87 | % | 107.8 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Oct-13 | 166.88 | % | 133.77 | % | 106.64 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Jul-13 | 176.69 | % | 139.1 | % | 106.61 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Apr-13 | 174.76 | % | 138.97 | % | 106.56 | % | 142.96 | % | 146.89 | % | |||||||||||||||||||
Jan-13 | 172.73 | % | 138.89 | % | 105.9 | % | 142.96 | % | — |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Variable Interest Entities | ' | |||||||
Summary of the company's variable interests in identified VIEs, of which the company is not the primary beneficiary | ' | |||||||
The following is a summary of the Company's variable interests in identified VIEs, of which the Company is not the primary beneficiary, as of December 31, 2013: | ||||||||
Type | Carrying | Maximum | ||||||
Amount(1) | Exposure to | |||||||
Loss(2) | ||||||||
Loans | $ | 417,998,101 | $ | 417,998,101 | ||||
Loans and equity investments | 115,253,740 | 115,253,740 | ||||||
RMBS | 109,041,129 | 109,041,129 | ||||||
CMBS | 2,100,000 | 2,100,000 | ||||||
Junior subordinated notes(3) | 578,000 | 578,000 | ||||||
| | | | | | | | |
Total | $ | 644,970,970 | $ | 644,970,970 | ||||
| | | | | | | | |
| | | | | | | | |
-1 | ||||||||
Represents the carrying amount of loans and investments before reserves. At December 31, 2013, $185.0 million of loans to VIEs had corresponding loan loss reserves of approximately $110.9 million and $44.3 million of loans to VIEs were related to loans classified as non-performing. See Note 3—"Loans and Investments" for further details. | ||||||||
-2 | ||||||||
The Company's maximum exposure to loss as of December 31, 2013 would not exceed the carrying amount of its investment. | ||||||||
-3 | ||||||||
These entities that issued the junior subordinated notes are VIEs. It is not appropriate to consolidate these entities as equity interests are variable interests only to the extent that the investment is considered to be at risk. Since the Company's investments were funded by the entities that issued the junior subordinated notes, it is not considered to be at risk. | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments held by the company | ' | |||||||||||||||||||||||||||||||||||||||
The following is a summary of the derivative financial instruments held by the Company as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
Notional Value | Fair Value | |||||||||||||||||||||||||||||||||||||||
Designation\Cash Flow | Derivative | Count | December 31, | Count | December 31, | Expiration | Balance | December 31, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | Date | Sheet | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Location | ||||||||||||||||||||||||||||||||||||||||
Non-Qualifying | Basis Swaps | 1 | $ | 11,600 | 8 | $ | 603,524 | 2015 | Other Assets | $ | 5 | $ | 128 | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Non-Qualifying | LIBOR Caps | — | $ | — | 1 | $ | 6,000 | — | Other Assets | $ | — | $ | — | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Qualifying | LIBOR Cap | — | $ | — | 1 | $ | 73,301 | — | Other Assets | $ | — | $ | — | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Qualifying | Interest Rate Swaps | 14 | $ | 297,532 | 14 | $ | 312,227 | 2014 - 2017 | Other Liabilities | $ | (24,794 | ) | $ | (37,755 | ) | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Non-Qualifying | Forward Contracts | 8 | $ | — | 12 | $ | — | 2016 - 2036 | Other Assets | $ | 6,397 | $ | 10,800 | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Schedule of the effect of the company's derivative financial instruments on the statements of operations | ' | |||||||||||||||||||||||||||||||||||||||
The following table presents the effect of the Company's derivative financial instruments on the Statements of Operations as of December 31, 2013, 2012 and 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||
Amount of Loss | Amount of Loss | Amount of (Loss) | Amount of (Loss) | |||||||||||||||||||||||||||||||||||||
Recognized | Reclassified from | Gain Recognized | Gain Recognized | |||||||||||||||||||||||||||||||||||||
in Other | Accumulated Other | in Interest Expense | in Other Income | |||||||||||||||||||||||||||||||||||||
Comprehensive Loss | Comprehensive Loss into | (Ineffective Portion) | For the Year Ended | |||||||||||||||||||||||||||||||||||||
(Effective Portion) | Interest Expense | For the Year Ended | December 31, | |||||||||||||||||||||||||||||||||||||
For the Year Ended | (Effective Portion) | December 31, | ||||||||||||||||||||||||||||||||||||||
December 31, | For the Year Ended | |||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
Designation\Cash Flow | Derivative | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Non-Qualifying | Basis Swaps / Caps | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (12 | ) | $ | (22 | ) | $ | 827 | $ | — | $ | — | $ | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Qualifying | Interest Rate Swaps / Cap | $ | 520 | $ | 7,699 | $ | 20,698 | $ | (14,131 | ) | $ | (16,565 | ) | $ | (27,164 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Qualifying | Forward Contracts | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1,676 | ) | $ | 167 | $ | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value | ' | ||||||||||||||||
Summary of the carrying values and the estimated fair values of the Company's financial instruments | ' | ||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Carrying Value | Estimated | Carrying Value | Estimated | ||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Financial assets: | |||||||||||||||||
Loans and investments, net | $ | 1,523,699,653 | $ | 1,550,248,793 | $ | 1,325,667,053 | $ | 1,316,001,339 | |||||||||
Available-for-sale securities | 37,315,652 | 37,315,652 | 3,552,736 | 3,552,736 | |||||||||||||
Securities held-to-maturity, net | — | — | 42,986,980 | 43,153,124 | |||||||||||||
Derivative financial instruments | 6,402,336 | 6,402,336 | 10,927,551 | 10,927,551 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Repurchase agreements and credit facilities. | $ | 159,125,023 | $ | 158,735,570 | $ | 130,661,619 | $ | 130,363,126 | |||||||||
Collateralized debt obligations | 639,622,981 | 521,938,885 | 812,452,845 | 590,901,757 | |||||||||||||
Collateralized loan obligations | 264,500,000 | 266,436,250 | 87,500,000 | 87,500,000 | |||||||||||||
Junior subordinated notes | 159,291,427 | 101,240,185 | 158,767,145 | 99,984,066 | |||||||||||||
Notes payable | 2,500,000 | 2,487,287 | 51,457,708 | 46,743,406 | |||||||||||||
Mortgage note payable—real estate owned and held-for-sale | 53,751,004 | 52,943,305 | 53,751,004 | 50,005,874 | |||||||||||||
Derivative financial instruments | 24,794,051 | 24,794,051 | 37,754,775 | 37,754,775 | |||||||||||||
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
The fair value of these financial assets and liabilities was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying | Fair | Using Fair Value Hierarchy | |||||||||||||||
Value | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Available-for-sale securities(1) | $ | 37,315,652 | $ | 37,315,652 | $ | 734,866 | $ | — | $ | 36,580,786 | |||||||
Derivative financial instruments(2) | 6,402,336 | 6,402,336 | — | 5,483 | 6,396,853 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Derivative financial instruments | 24,794,051 | 24,794,051 | — | 24,794,051 | — | ||||||||||||
-1 | |||||||||||||||||
The Company's equity securities available-for-sale were measured using Level 1 inputs and the Company's RMBS and CMBS investments available-for-sale were measured using Level 3 inputs. | |||||||||||||||||
-2 | |||||||||||||||||
The Company's basis swap derivatives were measured using Level 2 inputs and the Company's forward contract derivatives were measured using Level 3 inputs. | |||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ||||||||||||||||
Available-for-sale | Derivative Financial | ||||||||||||||||
Securities | Instruments | ||||||||||||||||
Balance as of December 31, 2012 | $ | 3,200,000 | $ | 10,799,536 | |||||||||||||
Adjustments to fair value: | |||||||||||||||||
Additions(1) | 34,480,786 | 10,285,729 | |||||||||||||||
Paydowns(2) | — | (4,468,205 | ) | ||||||||||||||
Net changes in fair value(3) | — | (1,675,629 | ) | ||||||||||||||
Sales and settlements(4) | (1,100,000 | ) | (8,544,578 | ) | |||||||||||||
| | | | | | | | ||||||||||
Balance as of December 31, 2013 | $ | 36,580,786 | $ | 6,396,853 | |||||||||||||
| | | | | | | | ||||||||||
| | | | | | | | ||||||||||
-1 | |||||||||||||||||
Represents RMBS investments transferred from held-to-maturity to available-for-sale and forward contract derivatives recorded at fair value in the year ended December 31, 2013. | |||||||||||||||||
-2 | |||||||||||||||||
Represents the paydowns on the forward contracts during the year ended December 31, 2013. | |||||||||||||||||
-3 | |||||||||||||||||
Represents the net change in fair value recorded to other income during the year ended December 31, 2013. | |||||||||||||||||
-4 | |||||||||||||||||
Represents the sale of a CDO bond investment and the settlement of forward contract derivatives during the year ended December 31, 2013. | |||||||||||||||||
Schedule of certain financial and non-financial assets measured at fair value on a nonrecurring basis | ' | ||||||||||||||||
The fair value of these assets was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Net | Fair | Using Fair Value Hierarchy | |||||||||||||||
Carrying | Value | ||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial assets: | |||||||||||||||||
Impaired loans, net(1) | $ | 85,193,835 | $ | 103,951,397 | $ | — | $ | — | $ | 103,951,397 | |||||||
Non-financial assets: | |||||||||||||||||
Impaired real estate owned(2) | 3,437,152 | 3,437,152 | — | — | 3,437,152 | ||||||||||||
Land investment(3) | 6,061,498 | 6,061,498 | — | — | 6,061,498 | ||||||||||||
-1 | |||||||||||||||||
The Company had an allowance for loan losses of $122.3 million relating to 15 loans with an aggregate carrying value, before loan loss reserves, of approximately $207.5 million at December 31, 2013. | |||||||||||||||||
-2 | |||||||||||||||||
The Company recorded an impairment loss on one of the properties in its multifamily portfolio in the fourth quarter of 2013. | |||||||||||||||||
-3 | |||||||||||||||||
The Company recorded land held as collateral for a loan that was transferred to other assets at fair value in the fourth quarter of 2013. | |||||||||||||||||
Schedule of quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||
Financial assets: | |||||||||||||||||
Impaired loans(1): | |||||||||||||||||
Multi-family | $ | 24,472,539 | Direct capitalization analysis | Discount rate | 7.50% to 8.00% (6.30%) | ||||||||||||
and discounted cash flows | Capitalization rate | 6.00% to 8.25% (6.98%) | |||||||||||||||
Revenue growth rate | 2.00% to 3.00% (1.73%) | ||||||||||||||||
Office | 7,330,000 | Discounted cash flows | Discount rate | 9.25% to 10.00% (9.45%) | |||||||||||||
Capitalization rate | 8.00% to 8.50% (8.16)% | ||||||||||||||||
Revenue growth rate | 2.50% to 3.00% (2.96)% | ||||||||||||||||
Land | 72,148,858 | Discounted cash flows | Discount rate | 15.00% | |||||||||||||
Capitalization rate | 7.25% | ||||||||||||||||
Revenue growth rate | 3.00% | ||||||||||||||||
CMBS | 2,100,000 | Discounted cash flows | Discount rate | 17.17% | |||||||||||||
RMBS | 34,480,786 | Valuation models | Discount rate | -2 | |||||||||||||
Loss severity | -2 | ||||||||||||||||
Forward Contract Derivatives | 6,396,853 | Valuation models | Cumulative default rate | -2 | |||||||||||||
Voluntary prepayment rate | -2 | ||||||||||||||||
Non-financial assets: | |||||||||||||||||
Impaired real estate owned | 3,437,152 | Discounted cash flows | Discount rate | 10.00% | |||||||||||||
Capitalization rate | 8.00% | ||||||||||||||||
Revenue growth rate | 2.35% | ||||||||||||||||
Land | 6,061,498 | Comparable sales and | Dollar per acre | $293K/Acre | |||||||||||||
discounted cash flows | Discount rate | 11.00% | |||||||||||||||
-1 | |||||||||||||||||
Includes all impaired loans regardless of the period in which provision was recorded. | |||||||||||||||||
-2 | |||||||||||||||||
Each RMBS and forward contract derivative is associated with an underlying security that is individually modeled and valued based on the security's specific characteristics, which include current collateral composition, collateral performance projections, tranche credit enhancement and other market factors. Accordingly, as the range of the unobservable inputs used to value each individual security varies greatly, disclosing a range or weighted average of such inputs would not be meaningful. In the first quarter of 2014, the Company sold the majority of these RMBS investments and forward contract derivatives. | |||||||||||||||||
Schedule of fair value of assets and liabilities | ' | ||||||||||||||||
The fair value of these assets and liabilities was determined using the following inputs as of December 31, 2013: | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Using Fair Value Hierarchy | |||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Loans and investments, net | $ | 1,523,699,653 | $ | 1,550,248,793 | $ | — | $ | — | $ | 1,550,248,793 | |||||||
Financial liabilities: | |||||||||||||||||
Repurchase agreements and credit facilities | $ | 159,125,023 | $ | 158,735,570 | $ | — | $ | — | $ | 158,735,570 | |||||||
Collateralized debt obligations | 639,622,981 | 521,938,885 | — | — | 521,938,885 | ||||||||||||
Collateralized loan obligations | 264,500,000 | 266,436,250 | — | — | 266,436,250 | ||||||||||||
Junior subordinated notes | 159,291,427 | 101,240,185 | — | — | 101,240,185 | ||||||||||||
Notes payable | 2,500,000 | 2,487,287 | — | — | 2,487,287 | ||||||||||||
Mortgage note payable—real estate owned and held-for-sale | 53,751,004 | 52,943,305 | — | — | 52,943,305 |
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Equity | ' | ||||||||
Schedule of reclassifications out of accumulated other comprehensive loss | ' | ||||||||
Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2013 and 2012 were as follows (in thousands): | |||||||||
Year Ended | |||||||||
December 31, | Statement of | ||||||||
2013 | 2012 | Operations Caption | |||||||
Net realized losses on derivatives designated as cash flow hedges: | |||||||||
Interest Rate Swaps / Cap | $ | (14,131 | ) | $ | (16,565 | ) | Interest expense(1) | ||
| | | | | | | | | |
| | | | | | | | | |
Net realized gain on sale of available-for-sale investments: | |||||||||
CDO bond investment | $ | 100 | $ | — | Other income(2) | ||||
| | | | | | | | | |
| | | | | | | | | |
-1 | |||||||||
See Note 10—"Derivative Financial Instruments" for additional details. | |||||||||
-2 | |||||||||
See Note 4—"Securities" for additional details. | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||||
Reconciliation of the numerator and denominator of the basic and diluted earnings per share computations | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 17,112,078 | $ | 17,112,078 | $ | 16,492,062 | $ | 16,492,062 | $ | (37,311,821 | ) | $ | (37,311,821 | ) | ||||||
(Loss) income from discontinued operations | (444,123 | ) | (444,123 | ) | 5,008,826 | 5,008,826 | (2,999,892 | ) | (2,999,892 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders(1) | $ | 16,667,955 | $ | 16,667,955 | $ | 21,500,888 | $ | 21,500,888 | $ | (40,311,713 | ) | $ | (40,311,713 | ) | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding | 42,399,872 | 42,399,872 | 26,956,938 | 26,956,938 | 24,968,894 | 24,968,894 | ||||||||||||||
Dilutive effect of warrants(2) | — | 435,272 | — | 254,349 | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding | 42,399,872 | 42,835,144 | 26,956,938 | 27,211,287 | 24,968,894 | 24,968,894 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends, per common share | $ | 0.4 | $ | 0.4 | $ | 0.61 | $ | 0.61 | $ | (1.49 | ) | $ | (1.49 | ) | ||||||
Income (loss) from discontinued operations per common share | (0.01 | ) | (0.01 | ) | 0.19 | 0.18 | (0.12 | ) | (0.12 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Arbor Realty Trust, Inc. per common share(1) | $ | 0.39 | $ | 0.39 | $ | 0.8 | $ | 0.79 | $ | (1.61 | ) | $ | (1.61 | ) | ||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
Net of noncontrolling interest and preferred stock dividends. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
In connection with a debt restructuring with Wachovia Bank in the third quarter of 2009, the Company issued Wachovia 1.0 million warrants at an average strike price of $4.00. For the year ended December 31, 2011, the Company had a net loss and thus did not have a dilutive effect from the warrants. | ||||||||||||||||||||
Distributions_Tables
Distributions (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Schedule of dividends paid by the Company on its common and preferred stock | ' | ||||||||||||||||||||||||||||
For Tax Purposes | |||||||||||||||||||||||||||||
Dividend Classified as | Capital Gain | Dividend Classified | |||||||||||||||||||||||||||
Ordinary Income | Distribution | as Return of Capital | |||||||||||||||||||||||||||
Year | Total | Dividend | Percent | Dividend | Qualified | Percent | Dividend | Percent | Dividend | ||||||||||||||||||||
Dividends | Paid | Paid | Dividend | Paid | Paid | ||||||||||||||||||||||||
Paid(1) | Per Share | Per | Income(2) | Per | Per | ||||||||||||||||||||||||
(In Thousands) | Share | Share | Share | ||||||||||||||||||||||||||
Common Stock: | |||||||||||||||||||||||||||||
2013 | $ | 21,327 | $ | 0.5 | 100 | % | $ | 0.5 | — | — | — | — | — | ||||||||||||||||
2012 | $ | 8,031 | $ | 0.285 | 100 | % | $ | 0.285 | — | — | — | — | — | ||||||||||||||||
8.25% Series A Preferred Stock: | |||||||||||||||||||||||||||||
2013 | $ | 2,667 | $ | 1.719 | 100 | % | $ | 1.719 | — | — | — | — | — | ||||||||||||||||
7.75% Series B Preferred Stock: | |||||||||||||||||||||||||||||
2013 | $ | 1,370 | $ | 1.087 | 100 | % | $ | 1.087 | — | — | — | — | — | ||||||||||||||||
-1 | |||||||||||||||||||||||||||||
The Company did not pay dividends on its common stock in 2011 and 2013 is the initial year for the preferred stock dividends. | |||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||
Qualified dividend income is eligible for reduced dividend rates. | |||||||||||||||||||||||||||||
Common Stock | ' | ||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Schedule of dividends declared by the Board of Directors | ' | ||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's common stock from January 1, 2013 through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration | For Quarter | Record | Payment | Dividend | |||||||||||||||||||||||||
Date | Ended | Date | Date | Per Share | |||||||||||||||||||||||||
November 6, 2013 | September 30, 2013 | November 20, 2013 | December 2, 2013 | $ | 0.13 | ||||||||||||||||||||||||
July 31, 2013 | June 30, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.13 | ||||||||||||||||||||||||
May 1, 2013 | March 31, 2013 | May 15, 2013 | May 31, 2013 | $ | 0.12 | ||||||||||||||||||||||||
February 12, 2013 | December 31, 2012 | March 5, 2013 | March 12, 2013 | $ | 0.12 | ||||||||||||||||||||||||
Preferred Stock | 8.25% Series A cumulative redeemable preferred stock | ' | ||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Schedule of dividends declared by the Board of Directors | ' | ||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's 8.25% Series A preferred stock from February 1, 2013 (date of issuance) through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration Date | For Period | For Period | Record | Payment | Dividend | ||||||||||||||||||||||||
Beginning | Ended | Date | Date | Per Share | |||||||||||||||||||||||||
October 25, 2013 | September 1, 2013 | November 30, 2013 | November 15, 2013 | December 2, 2013 | $ | 0.515625 | |||||||||||||||||||||||
July 31, 2013 | June 1, 2013 | August 31, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.515625 | |||||||||||||||||||||||
May 1, 2013 | February 1, 2013 | May 31, 2013 | May 15, 2013 | May 31, 2013 | $ | 0.6875 | |||||||||||||||||||||||
Preferred Stock | 7.75% Series B cumulative redeemable preferred stock | ' | ||||||||||||||||||||||||||||
Distributions | ' | ||||||||||||||||||||||||||||
Schedule of dividends declared by the Board of Directors | ' | ||||||||||||||||||||||||||||
The following table presents dividends declared by the Board of Directors on the Company's 7.75% Series B preferred stock from May 9, 2013 (date of issuance) through December 31, 2013: | |||||||||||||||||||||||||||||
Declaration | For Period | For Period | Record | Payment | Dividend | ||||||||||||||||||||||||
Date | Beginning | Ended | Date | Date | Per Share | ||||||||||||||||||||||||
October 25, 2013 | September 1, 2013 | November 30, 2013 | November 15, 2013 | December 2, 2013 | $ | 0.484375 | |||||||||||||||||||||||
July 31, 2013 | May 9, 2013 | August 31, 2013 | August 14, 2013 | September 3, 2013 | $ | 0.6028 |
Management_Agreement_Tables
Management Agreement (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Management Agreement | ' | ||||||||||
Schedule of Company's base and incentive compensation management fees | ' | ||||||||||
Year Ended December 31, | |||||||||||
Management Fees: | 2013 | 2012 | 2011 | ||||||||
Base(1) | $ | 10,900,000 | $ | 10,000,000 | $ | 8,300,000 | |||||
Incentive | — | — | — | ||||||||
| | | | | | | | | | | |
Total management fee | $ | 10,900,000 | $ | 10,000,000 | $ | 8,300,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | |||||||||||
Included in base management fees at December 31, 2013 and 2012 was $2.8 million and $3.1 million, respectively, which was included in due to related party. These amounts are paid in the quarters subsequent to each respective year end. | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of (benefit) provision for income taxes | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current tax (benefit) provision: | |||||||||||
Federal | $ | — | $ | (1,025,508 | ) | $ | — | ||||
State | — | 245,517 | — | ||||||||
| | | | | | | | | | | |
Total current tax (benefit) provision | — | (779,991 | ) | — | |||||||
| | | | | | | | | | | |
Deferred tax (benefit) provision: | |||||||||||
Federal—net of valuation allowance | — | (13,695 | ) | — | |||||||
State—net of valuation allowance | — | (7,872 | ) | — | |||||||
| | | | | | | | | | | |
Total deferred tax (benefit) provision | — | (21,567 | ) | — | |||||||
| | | | | | | | | | | |
Total (benefit) provision | $ | — | $ | (801,558 | ) | $ | — | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of difference between effective income tax rate as a percentage of pretax income or loss that and the U.S. federal statutory rate | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
REIT non-taxable income | (35.7 | ) | (41.0 | ) | (41.9 | ) | |||||
State and local income taxes, net of federal tax benefit | (1.1 | ) | (1.1 | ) | (0.9 | ) | |||||
Change in valuation allowance | 1.8 | 9.8 | 7.8 | ||||||||
Refund | — | (6.5 | ) | — | |||||||
| | | | | | | | | | | |
Effective income tax rate | — | % | (3.8 | )% | — | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary of significant components of deferred tax assets (liabilities) | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets (liabilities): | |||||||||||
Expenses not currently deductible | $ | 1,585,723 | $ | 1,705,929 | |||||||
Net operating and capital loss carryforwards | 5,534,018 | 3,180,736 | |||||||||
Interest in equity affiliates—net | (1,489,269 | ) | (1,034,317 | ) | |||||||
| | | | | | | | ||||
Deferred tax assets | 5,630,472 | 3,852,348 | |||||||||
Valuation allowance | (5,608,905 | ) | (3,830,781 | ) | |||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 21,567 | $ | 21,567 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Summary_Quarterly_Consolidated1
Summary Quarterly Consolidated Financial Information - Unaudited (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Summary Quarterly Consolidated Financial Information - Unaudited | ' | |||||||||||||
Summary of quarterly financial data | ' | |||||||||||||
Three Months Ended | ||||||||||||||
December 31, 2013 | September 30, 2013 | June 30, 2013 | March 31, 2013 | |||||||||||
Net interest income | $ | 15,526,603 | $ | 15,097,248 | $ | 13,996,043 | $ | 12,346,578 | ||||||
Total other revenue | 5,465,819 | 6,688,523 | 8,251,944 | 9,713,786 | ||||||||||
Total other expenses | 16,083,239 | 17,700,377 | 17,873,676 | 18,412,689 | ||||||||||
| | | | | | | | | | | | | | |
Income from continuing operations before gain on extinguishment of debt and income (loss) from equity affiliates | 4,909,183 | 4,085,394 | 4,374,311 | 3,647,675 | ||||||||||
Gain on extinguishment of debt | — | 1,167,772 | — | 3,763,000 | ||||||||||
Income (loss) from equity affiliates | 40,937 | (81,723 | ) | (81,804 | ) | (81,885 | ) | |||||||
| | | | | | | | | | | | | | |
Income from continuing operations | 4,950,120 | 5,171,443 | 4,292,507 | 7,328,790 | ||||||||||
Loss from discontinued operations | (172,644 | ) | (79,716 | ) | (90,191 | ) | (101,572 | ) | ||||||
| | | | | | | | | | | | | | |
Net income | 4,777,476 | 5,091,727 | 4,202,316 | 7,227,218 | ||||||||||
| | | | | | | | | | | | | | |
Preferred stock dividends | 1,410,305 | 1,410,333 | 1,152,617 | 533,328 | ||||||||||
Net income attributable to noncontrolling interest | — | 16,715 | 53,833 | 53,651 | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 3,367,171 | $ | 3,664,679 | $ | 2,995,866 | $ | 6,640,239 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic earnings per common share(1): | ||||||||||||||
Income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.2 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.2 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Diluted earnings per common share(1): | ||||||||||||||
Income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.19 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
| | | | | | | | | | | | | | |
Net income attributable to Arbor Realty Trust, Inc. common stockholders | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.19 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Three Months Ended | ||||||||||||||
December 31, 2012 | September 30, 2012 | June 30, 2012 | March 31, 2012 | |||||||||||
Net interest income | $ | 11,034,505 | $ | 10,520,512 | $ | 9,731,906 | $ | 7,845,007 | ||||||
Total other revenue | 5,580,252 | 7,477,408 | 7,931,963 | 8,312,312 | ||||||||||
Total other expenses | 17,473,474 | 19,439,955 | 23,310,912 | 22,064,620 | ||||||||||
| | | | | | | | | | | | | | |
Loss from continuing operations before gain on extinguishment of debt, income (loss) from equity affiliates and benefit (provision) for income taxes | (858,717 | ) | (1,442,035 | ) | (5,647,043 | ) | (5,907,301 | ) | ||||||
Gain on extinguishment of debt | — | 4,144,688 | 20,968,214 | 5,346,121 | ||||||||||
Income (loss) from equity affiliates | 2,347 | (225,493 | ) | (224,136 | ) | (250,574 | ) | |||||||
| | | | | | | | | | | | | | |
(Loss) income before benefit (provision) for income taxes | (856,370 | ) | 2,477,160 | 15,097,035 | (811,754 | ) | ||||||||
Benefit (provision) for income taxes | 275,000 | (275,000 | ) | (600,000 | ) | 1,401,558 | ||||||||
| | | | | | | | | | | | | | |
(Loss) income from continuing operations | (581,370 | ) | 2,202,160 | 14,497,035 | 589,804 | |||||||||
| | | | | | | | | | | | | | |
Gain on sale of real estate held-for-sale | 466,310 | — | — | 3,487,145 | ||||||||||
(Loss) income from operations of real estate held-for-sale | (98,210 | ) | (87,855 | ) | 1,102,794 | 138,642 | ||||||||
| | | | | | | | | | | | | | |
Income (loss) from discontinued operations | 368,100 | (87,855 | ) | 1,102,794 | 3,625,787 | |||||||||
| | | | | | | | | | | | | | |
Net (loss) income | (213,270 | ) | 2,114,305 | 15,599,829 | 4,215,591 | |||||||||
Net income attributable to noncontrolling interest | 53,969 | 53,976 | 53,811 | 53,811 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (267,239 | ) | $ | 2,060,329 | $ | 15,546,018 | $ | 4,161,780 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Basic (loss) earnings per common share(1): | ||||||||||||||
(Loss) income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | (0.02 | ) | $ | 0.07 | $ | 0.58 | $ | 0.02 | |||||
Income (loss) from discontinued operations | 0.01 | — | 0.04 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (0.01 | ) | $ | 0.07 | $ | 0.62 | $ | 0.17 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Diluted (loss) earnings per common share(1): | ||||||||||||||
(Loss) income from continuing operations, net of noncontrolling interest and preferred stock dividends | $ | (0.02 | ) | $ | 0.07 | $ | 0.58 | $ | 0.02 | |||||
Income (loss) from discontinued operations | 0.01 | — | 0.04 | 0.15 | ||||||||||
| | | | | | | | | | | | | | |
Net (loss) income attributable to Arbor Realty Trust, Inc. common stockholders | $ | (0.01 | ) | $ | 0.07 | $ | 0.62 | $ | 0.17 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
-1 | ||||||||||||||
The total for the year may differ from the sum of the quarters as a result of weighting. | ||||||||||||||
Description_of_Business_Detail
Description of Business (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 02, 2003 | Mar. 15, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2003 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 14, 2014 | |
ACM | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | |||
Subsequent event | |||||||||||||
Description of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock authorized for issuance | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of preferred stock authorized for issuance | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | 6,000,000 | 6,000,000 | 5,625,000 | 3,500,000 | 3,500,000 | 67 | 17,625,000 | 7,000,000 | 666,927 | 0 |
Proceeds from issuance of common stock | $134,176,328 | $39,200,000 | ' | $45,600,000 | $40,900,000 | $43,000,000 | $19,200,000 | $17,500,000 | $1,005 | ' | ' | ' | ' |
Structured finance assets contribution amount for commensurate equity ownership under operating partnership | ' | ' | 213,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings supported by equity contributed for commensurate equity ownership under operating partnership | ' | ' | 169,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment for commensurate equity ownership under operating partnership | ' | ' | $43,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Summary of Significant Accounting Policies | ' |
Number of collateralized debt obligation subsidiaries | 3 |
Number of collateralized loan obligation subsidiaries | 2 |
Period following the date of acquisition in which the entity finalizes the purchase price allocation of the real estate properties acquired | '1 year |
Impaired Loans, Allowance for Loan Losses, Loss on Sale and Restructuring of Loans and Charge-offs | ' |
Adjustments made to appraisals | $0 |
Minimum | ' |
Summary of Significant Accounting Policies | ' |
Voting interest in entities accounted for primarily under the equity method (as a percent) | 20.00% |
Maximum | ' |
Summary of Significant Accounting Policies | ' |
Voting interest in entities accounted for primarily under the equity method (as a percent) | 50.00% |
Loans_and_Investments_Details
Loans and Investments (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
item | item | |||
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | $1,660,195,301 | $1,501,056,647 | ' | ' |
Unearned revenue | -14,218,237 | -13,683,281 | ' | ' |
Allowance for loan losses | -122,277,411 | -161,706,313 | -185,381,855 | -205,470,302 |
Loans and investments, net | 1,523,699,653 | 1,325,667,053 | ' | ' |
Percent of Total | 100.00% | 100.00% | ' | ' |
Loan Count | 144 | 128 | ' | ' |
Wtd. Avg. Pay Rate (as a percent) | 5.26% | 4.77% | ' | ' |
Wtd. Avg. Remaining Months to Maturity | '23 months 15 days | '31 months 24 days | ' | ' |
First Dollar LTV Ratio (as percent) | 17.00% | 21.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 77.00% | 80.00% | ' | ' |
Number of portfolio segments | 1 | ' | ' | ' |
Higher credit risk | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 187,500,000 | 231,100,000 | ' | ' |
Last Dollar LTV Ratio (as percent) | 93.00% | 90.00% | ' | ' |
Credit risk concentration | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 1,660,195,301 | 1,501,056,647 | ' | ' |
Percent of Total | 100.00% | 100.00% | ' | ' |
First Dollar LTV Ratio (as percent) | 17.00% | 21.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 77.00% | 80.00% | ' | ' |
Credit risk concentration | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 1 | ' | ' | ' |
Credit risk concentration | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 5 | ' | ' | ' |
Credit risk concentration | Risk rating, three | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 3 | ' | ' | ' |
Credit risk concentration | Risk rating, four | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 4 | ' | ' | ' |
Credit risk concentration | Risk rating, five | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 5 | ' | ' | ' |
Credit risk concentration | Risk rating, 3.5 | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 3.5 | ' | ' | ' |
Credit risk concentration | Risk rating, 4.5 | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Credit risk individual ratings | 4.5 | ' | ' | ' |
Total assets | Credit risk concentration | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loan Count | 28 | 23 | ' | ' |
Number of different borrowers | 5 | 5 | ' | ' |
Concentration risk, percentage | 30.00% | 31.00% | ' | ' |
Revenue | Customer risk concentration | Chetrit Group L.L.C. | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Concentration risk, percentage | 11.00% | ' | ' | ' |
Bridge Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 1,171,783,914 | 1,006,726,838 | ' | ' |
Percent of Total | 71.00% | 67.00% | ' | ' |
Loan Count | 95 | 83 | ' | ' |
Wtd. Avg. Pay Rate (as a percent) | 5.11% | 4.87% | ' | ' |
Wtd. Avg. Remaining Months to Maturity | '18 months 15 days | '25 months | ' | ' |
First Dollar LTV Ratio (as percent) | 0.00% | 0.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 76.00% | 75.00% | ' | ' |
Mezzanine Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 118,550,172 | 112,843,639 | ' | ' |
Percent of Total | 7.00% | 7.00% | ' | ' |
Loan Count | 27 | 24 | ' | ' |
Wtd. Avg. Pay Rate (as a percent) | 7.02% | 4.94% | ' | ' |
Wtd. Avg. Remaining Months to Maturity | '58 months 6 days | '62 months 18 days | ' | ' |
First Dollar LTV Ratio (as percent) | 56.00% | 59.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 83.00% | 88.00% | ' | ' |
Junior Participations Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 248,337,542 | 280,662,498 | ' | ' |
Percent of Total | 15.00% | 19.00% | ' | ' |
Loan Count | 7 | 9 | ' | ' |
Wtd. Avg. Pay Rate (as a percent) | 4.21% | 3.90% | ' | ' |
Wtd. Avg. Remaining Months to Maturity | '19 months 18 days | '29 months 3 days | ' | ' |
First Dollar LTV Ratio (as percent) | 60.00% | 59.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 81.00% | 79.00% | ' | ' |
Preferred equity investments | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | $121,523,673 | $100,823,672 | ' | ' |
Percent of Total | 7.00% | 7.00% | ' | ' |
Loan Count | 15 | 12 | ' | ' |
Wtd. Avg. Pay Rate (as a percent) | 7.20% | 6.04% | ' | ' |
Wtd. Avg. Remaining Months to Maturity | '45 months 15 days | '72 months 6 days | ' | ' |
First Dollar LTV Ratio (as percent) | 58.00% | 77.00% | ' | ' |
Last Dollar LTV Ratio (as percent) | 79.00% | 97.00% | ' | ' |
Loans_and_Investments_Details_
Loans and Investments (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 1,660,195,301 | 1,501,056,647 |
Percentage of Portfolio | 100.00% | 100.00% |
First Dollar LTV Ratio (as percent) | 17.00% | 21.00% |
Last Dollar LTV Ratio (as percent) | 77.00% | 80.00% |
Loans and investments portfolio | New York | ' | ' |
Loans and Investments | ' | ' |
Concentration risk, percentage | 36.00% | 34.00% |
Loans and investments portfolio | California | ' | ' |
Loans and Investments | ' | ' |
Concentration risk, percentage | ' | 11.00% |
Loans and investments portfolio | Texas | ' | ' |
Loans and Investments | ' | ' |
Concentration risk, percentage | 10.00% | 10.00% |
Credit risk concentration | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 1,660,195,301 | 1,501,056,647 |
Percentage of Portfolio | 100.00% | 100.00% |
First Dollar LTV Ratio (as percent) | 17.00% | 21.00% |
Last Dollar LTV Ratio (as percent) | 77.00% | 80.00% |
Credit risk concentration | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3.3 | 3.4 |
Credit risk concentration | Multi-family | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 1,068,529,815 | 771,140,021 |
Percentage of Portfolio | 64.40% | 51.40% |
First Dollar LTV Ratio (as percent) | 14.00% | 19.00% |
Last Dollar LTV Ratio (as percent) | 75.00% | 79.00% |
Credit risk concentration | Multi-family | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3.3 | 3.4 |
Credit risk concentration | Office | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 358,832,526 | 415,162,338 |
Percentage of Portfolio | 21.60% | 27.60% |
First Dollar LTV Ratio (as percent) | 32.00% | 31.00% |
Last Dollar LTV Ratio (as percent) | 82.00% | 81.00% |
Credit risk concentration | Office | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3.2 | 3.2 |
Credit risk concentration | Land | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 116,751,563 | 140,745,980 |
Percentage of Portfolio | 7.00% | 9.40% |
First Dollar LTV Ratio (as percent) | 3.00% | 0.00% |
Last Dollar LTV Ratio (as percent) | 88.00% | 86.00% |
Credit risk concentration | Land | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 4 | 4.2 |
Credit risk concentration | Hotel | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 69,181,252 | 105,613,791 |
Percentage of Portfolio | 4.20% | 7.00% |
First Dollar LTV Ratio (as percent) | 26.00% | 22.00% |
Last Dollar LTV Ratio (as percent) | 84.00% | 78.00% |
Credit risk concentration | Hotel | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3.8 | 3.6 |
Credit risk concentration | Commercial | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 24,900,145 | 23,794,517 |
Percentage of Portfolio | 1.50% | 1.60% |
First Dollar LTV Ratio (as percent) | 3.00% | 0.00% |
Last Dollar LTV Ratio (as percent) | 49.00% | 50.00% |
Credit risk concentration | Commercial | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3 | 3 |
Credit risk concentration | Condo | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 15,250,000 | 25,250,000 |
Percentage of Portfolio | 0.90% | 1.70% |
First Dollar LTV Ratio (as percent) | 41.00% | 58.00% |
Last Dollar LTV Ratio (as percent) | 65.00% | 90.00% |
Credit risk concentration | Condo | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 3.7 | 4.2 |
Credit risk concentration | Retail | ' | ' |
Loans and Investments | ' | ' |
Unpaid Principal Balance | 6,750,000 | 19,350,000 |
Percentage of Portfolio | 0.40% | 1.30% |
First Dollar LTV Ratio (as percent) | 0.00% | 0.00% |
Last Dollar LTV Ratio (as percent) | 63.00% | 61.00% |
Credit risk concentration | Retail | Weighted average | ' | ' |
Loans and Investments | ' | ' |
Wtd. Avg. Internal Risk Rating | 2.5 | 2.9 |
Loans_and_Investments_Details_1
Loans and Investments (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
item | item | item | |
Loans and Investments | ' | ' | ' |
Number of impaired loans | 5 | 8 | 11 |
Carrying value of impaired loans | $31,500,000 | $94,600,000 | $109,500,000 |
Impaired loans, provision for loan losses | 6,500,000 | 23,828,224 | 44,810,000 |
Loans and Investments | ' | ' | ' |
Net recoveries of previously recorded loan loss reserves | 2,200,000 | 900,000 | 6,300,000 |
Loans with previous reserves | 1,000,000 | 18,900,000 | ' |
Loans without previous reserves | 5,500,000 | 4,900,000 | ' |
Provision for loan losses (net of recoveries) | 4,287,652 | 22,946,396 | 38,542,888 |
Number of loans for which no provision for loan loss made | 0 | 0 | 0 |
Number of impaired loans | 15 | 20 | ' |
Aggregate carrying value of impaired loans before reserves | 207,471,246 | 240,211,152 | ' |
Loss on sale and restructuring of loans | ' | ' | 5,710,000 |
Loss on sale and restructuring of loans from the sale of loan to a third party | ' | ' | 4,700,000 |
Carrying value of loans sold to third party | ' | ' | 30,000,000 |
Aggregate carrying value of loans related to which a portion has been sold to third party | ' | ' | 67,000,000 |
Sale value of loan sold to third party | ' | ' | 25,300,000 |
Loss on sale and restructuring of loans from the execution of a forbearance agreement | ' | ' | 1,000,000 |
Charge-offs to previously recorded reserves | 43,713,459 | 46,585,800 | 58,773,493 |
Proceeds from sale of loans | 4,424,097 | 17,945,000 | 45,590,400 |
Principal payoffs | ' | ' | 1,497,278 |
Changes in allowance for loan losses | ' | ' | ' |
Allowance at beginning of the period | 161,706,313 | 185,381,855 | 205,470,302 |
Impaired loans, provision for loan losses | 6,500,000 | 23,828,224 | 44,810,000 |
Charge-offs | -24,713,459 | -46,585,800 | -27,062,564 |
Charge-off on loan converted to other assets | -19,000,000 | ' | ' |
Charge-off on loans converted to real estate owned, net | ' | ' | -31,710,929 |
Recoveries of reserves | -2,215,443 | -917,966 | -6,124,954 |
Allowance at end of the period | 122,277,411 | 161,706,313 | 185,381,855 |
Write-off of several loans | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Aggregate carrying value of impaired loans before reserves | 23,200,000 | 43,400,000 | 119,900,000 |
Charge-offs to previously recorded reserves | 23,200,000 | 42,800,000 | 27,100,000 |
Two loans transferred to the company and purchased out of bankruptcy | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Aggregate carrying value of impaired loans before reserves | ' | ' | 77,200,000 |
Charge-offs to previously recorded reserves | ' | ' | 31,700,000 |
Number of loans reclassified to real estate owned | ' | ' | 2 |
Transfer of land held as collateral | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Aggregate carrying value of impaired loans before reserves | 25,000,000 | ' | ' |
Charge-offs to previously recorded reserves | 19,000,000 | ' | ' |
Fair value | 6,000,000 | ' | ' |
Bridge Loans | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Aggregate carrying value of impaired loans before reserves | 5,900,000 | ' | ' |
Charge-offs to previously recorded reserves | 1,500,000 | ' | ' |
Proceeds from sale of loans | 4,400,000 | ' | ' |
Bridge Loans | St. John's Development | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Fair value | 6,000,000 | ' | ' |
Area of pledged usable land (in acres) | 20.5 | ' | ' |
Area of pledged submerged land (in acres) | 2.3 | ' | ' |
Pledged land, number of dwellings per acre | 60 | ' | ' |
Bridge loan and a preferred equity loan | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Aggregate carrying value of impaired loans before reserves | ' | 5,500,000 | ' |
Charge-offs to previously recorded reserves | ' | 3,800,000 | ' |
Principal payoffs | ' | 1,600,000 | ' |
Number of loans written off | ' | 2 | ' |
Five loans collateralized by a land development project | Maturity date of September 2014 | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Number of loans with unpaid principal balance | 5 | ' | ' |
Unpaid principal balance on loans | 111,300,000 | ' | ' |
Changes in allowance for loan losses | ' | ' | ' |
Allowance at end of the period | 43,700,000 | ' | ' |
Four loans collateralized by a land development project | Maturity date of September 2014 | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Number of loans with unpaid principal balance | 4 | ' | ' |
Unpaid principal balance on loans | $101,900,000 | ' | ' |
Weighted average accrual rate of interest (as a percent) | 9.60% | ' | ' |
Loans_and_Investments_Details_2
Loans and Investments (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loans and Investments | ' | ' | ' |
Charge-offs | ($43,713,459) | ($46,585,800) | ($58,773,493) |
Recoveries | -2,215,443 | -917,966 | -6,124,954 |
Net Charge-offs | -41,498,016 | -45,667,834 | -52,648,539 |
Ratio of net charge-offs during the period to average loans and investments outstanding during the period | 0.026 | 0.03 | 0.034 |
Unpaid Principal Balance | 217,908,305 | 250,539,283 | ' |
Carrying value | 207,471,246 | 240,211,152 | ' |
Allowance for Loan losses | 122,277,411 | 161,706,313 | ' |
Average Recorded Investment | 227,388,042 | 269,921,863 | ' |
Interest Income Recognized | 4,152,434 | 2,984,811 | ' |
Multi-family | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Charge-offs | -4,789,815 | -10,773,141 | -38,308,816 |
Recoveries | -1,510,949 | -121,898 | -2,243,197 |
Unpaid Principal Balance | 65,735,773 | 59,468,463 | ' |
Carrying value | 65,186,623 | 59,277,872 | ' |
Allowance for Loan losses | 50,786,697 | 53,587,461 | ' |
Average Recorded Investment | 62,602,118 | 63,331,880 | ' |
Interest Income Recognized | 2,566,914 | 794,633 | ' |
Office | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Charge-offs | -6,252,129 | -5,812,659 | -7,114,677 |
Recoveries | -704,494 | -796,068 | -3,881,757 |
Unpaid Principal Balance | 36,086,582 | 38,362,808 | ' |
Carrying value | 29,474,065 | 30,545,156 | ' |
Allowance for Loan losses | 23,972,444 | 28,929,067 | ' |
Average Recorded Investment | 37,224,695 | 41,732,535 | ' |
Interest Income Recognized | 1,585,520 | 1,419,615 | ' |
Land | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Charge-offs | -19,000,000 | ' | ' |
Unpaid Principal Balance | 116,085,950 | 139,036,505 | ' |
Carrying value | 112,810,558 | 136,716,617 | ' |
Allowance for Loan losses | 47,518,270 | 65,518,270 | ' |
Average Recorded Investment | 127,561,228 | 136,185,941 | ' |
Hotel | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Charge-offs | -3,671,515 | -30,000,000 | -13,350,000 |
Unpaid Principal Balance | ' | 3,671,507 | ' |
Carrying value | ' | 3,671,507 | ' |
Allowance for Loan losses | ' | 3,671,515 | ' |
Average Recorded Investment | ' | 18,671,507 | ' |
Interest Income Recognized | ' | 596,643 | ' |
Condo | ' | ' | ' |
Loans and Investments | ' | ' | ' |
Charge-offs | -10,000,000 | ' | ' |
Unpaid Principal Balance | ' | 10,000,000 | ' |
Carrying value | ' | 10,000,000 | ' |
Allowance for Loan losses | ' | 10,000,000 | ' |
Average Recorded Investment | ' | 10,000,000 | ' |
Interest Income Recognized | ' | $173,920 | ' |
Loans_and_Investments_Details_3
Loans and Investments (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Non-performing loans by asset class | ' | ' |
Number of loans | 144 | 128 |
Carrying value of loans before loan loss reserves | $1,660,195,301 | $1,501,056,647 |
Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Number of loans | 5 | 9 |
Carrying value of loans before loan loss reserves | 10,700,000 | 14,900,000 |
Loan loss reserves | 39,600,000 | 45,100,000 |
Number of loans classified as non-performing which did not have loan loss reserve | 1 | 1 |
Carrying value of loans classified as non-performing which did not have loan loss reserve | 600,000 | 5,000,000 |
Carrying Value | 50,332,383 | 59,996,257 |
Less Than 90 Days Past Due | 32,000,000 | ' |
Greater Than 90 Days Past Due | 18,332,383 | 59,996,257 |
Multi-family | Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Carrying Value | 42,054,539 | 10,951,549 |
Less Than 90 Days Past Due | 32,000,000 | ' |
Greater Than 90 Days Past Due | 10,054,539 | 10,951,549 |
Office | Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Carrying Value | 8,277,844 | 10,373,229 |
Greater Than 90 Days Past Due | 8,277,844 | 10,373,229 |
Land | Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Carrying Value | ' | 24,999,972 |
Greater Than 90 Days Past Due | ' | 24,999,972 |
Hotel | Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Carrying Value | ' | 3,671,507 |
Greater Than 90 Days Past Due | ' | 3,671,507 |
Condo | Non-performing loans | ' | ' |
Non-performing loans by asset class | ' | ' |
Carrying Value | ' | 10,000,000 |
Greater Than 90 Days Past Due | ' | $10,000,000 |
Loans_and_Investments_Details_4
Loans and Investments (Details 6) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Loans and Investments | ' | ' |
Number of loans that were refinanced and/or modified | 4 | ' |
Amount of loans that were refinanced and/or modified | $52,500,000 | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | 2 | 4 |
Unfunded commitments on modified loans classified as troubled debt restructurings | 0 | 0 |
Number of loans not considered to be troubled debt restructurings | ' | 6 |
Unpaid principal balance of loans not considered to be troubled debt restructurings | ' | 144,900,000 |
Original Unpaid Principal Balance | 14,592,666 | 95,180,202 |
Original Weighted Average Rate of Interest (as a percent) | 7.27% | 2.83% |
Modified Unpaid Principal Balance | 14,592,666 | 95,150,721 |
Modified Weighted Average Rate of Interest (as a percent) | 7.27% | 2.18% |
Number of loans considered to be troubled debt restructurings that subsequently considered non-performing | 1 | 1 |
Amount of loans considered to be troubled debt restructurings that subsequently considered non-performing | 32,000,000 | 32,000,000 |
Number of additional loans considered to be troubled debt restructurings | 0 | 0 |
Multi-family | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | 1 | 1 |
Original Unpaid Principal Balance | 6,192,666 | 32,000,000 |
Original Weighted Average Rate of Interest (as a percent) | 5.96% | 2.00% |
Modified Unpaid Principal Balance | 6,192,666 | 32,000,000 |
Modified Weighted Average Rate of Interest (as a percent) | 5.96% | 1.13% |
Office | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | 1 | 1 |
Original Unpaid Principal Balance | 8,400,000 | 25,361,932 |
Original Weighted Average Rate of Interest (as a percent) | 8.24% | 5.32% |
Modified Unpaid Principal Balance | 8,400,000 | 25,332,451 |
Modified Weighted Average Rate of Interest (as a percent) | 8.24% | 4.00% |
Land | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | ' | 1 |
Original Unpaid Principal Balance | ' | 2,818,270 |
Modified Unpaid Principal Balance | ' | 2,818,270 |
Hotel | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | ' | 1 |
Original Unpaid Principal Balance | ' | 35,000,000 |
Original Weighted Average Rate of Interest (as a percent) | ' | 2.00% |
Modified Unpaid Principal Balance | ' | 35,000,000 |
Modified Weighted Average Rate of Interest (as a percent) | ' | 2.00% |
Multi-family and Office | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | 2 | 2 |
Original Unpaid Principal Balance | 14,600,000 | 57,400,000 |
Land and Hotel | ' | ' |
Troubled debt restructurings by asset class | ' | ' |
Number of loans considered to be troubled debt restructurings | ' | 2 |
Original Unpaid Principal Balance | ' | $37,800,000 |
Loans_and_Investments_Details_5
Loans and Investments (Details 7) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | item |
Financing Receivable, Impaired [Line Items] | ' |
Total interest reserves | $11.70 |
Number of loans | 48 |
Aggregate unpaid principal balance | 598.6 |
Non-performing loans | ' |
Financing Receivable, Impaired [Line Items] | ' |
Total interest reserves | 0.1 |
Number of loans | 2 |
Aggregate unpaid principal balance | $4.70 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2014 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | Mezzanine Loans | Mezzanine Loans | Residential mortgage-backed security (RMBS) | CDO bond and CMBS investments | CDO bond and CMBS investments | CDO bond and CMBS investments | CDO bond and CMBS investments | CDO bond and CMBS investments | CDO bond and CMBS investments | CDO bond and CMBS investments | Collateralized debt obligation (CDO) bond | Commercial mortgage-backed security (CMBS) | Commercial mortgage-backed security (CMBS) | Common equity securities | Common equity securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | |
item | item | item | item | AA+ | CCC | CCC- | CCC- | NR | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Collateralized debt obligation (CDO) bond | Commercial mortgage-backed security (CMBS) | Commercial mortgage-backed security (CMBS) | Commercial mortgage-backed security (CMBS) | Commercial mortgage-backed security (CMBS) | Common equity securities | Common equity securities | ||||||||||||
item | item | item | item | item | Subsequent event | Mezzanine Loans | Realty Finance Corporation | Realty Finance Corporation | |||||||||||||||||||||
item | |||||||||||||||||||||||||||||
Available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Value | $41,113,690 | $12,100,000 | ' | ' | $39,013,690 | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | $2,100,000 | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized Cost | 36,208,099 | 3,158,789 | ' | ' | 34,049,310 | 36,149,310 | 3,100,000 | 93,715 | 18,417,402 | 2,100,000 | 3,100,000 | 15,538,193 | 1,000,000 | 2,100,000 | 2,100,000 | 58,789 | 58,789 | ' | ' | ' | 34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative Unrealized Gain | 1,113,851 | 393,947 | ' | ' | 437,774 | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | 676,077 | 293,947 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative Unrealized Loss | -6,298 | ' | ' | ' | -6,298 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value / Estimated Fair Value | 37,315,652 | 3,552,736 | ' | ' | 34,480,786 | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | 2,100,000 | 2,100,000 | 734,866 | 352,736 | ' | ' | ' | 34,400,000 | 32,900,000 | 1,100,000 | 2,100,000 | 2,100,000 | ' | ' | 700,000 | 400,000 |
Number of securities | ' | ' | ' | ' | ' | 11 | 2 | 1 | 1 | 2 | 2 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Total | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | 51.00% | 6.00% | 100.00% | 43.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative Unrealized Gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Investments financed with a repurchase agreement with a financial institution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,800,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' |
Number of loans | 144 | 128 | 27 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Carrying value of loans before loan loss reserves | 1,660,195,301 | 1,501,056,647 | 118,550,172 | 112,843,639 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' |
Base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' |
Interest spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.89% | 0.89% | ' | ' | ' | ' |
Stated maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 6 months | '6 years 6 months | ' | ' | ' | ' |
Estimated remaining life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 months 24 days | '4 months 24 days | ' | ' | ' | ' |
Number of shares of common stock purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,939,465 | ' |
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of securities | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,400,000 | 2,100,000 | ' | ' | ' | ' | ' | ' |
Gain on sale of securities | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' |
Realization of unrealized gain reclassified out of accumulated other comprehensive loss | ($100,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' |
Securities_Details_2
Securities (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | AAA | AA | BB | D | NR | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | Held-to-maturity securities | |||
item | item | item | item | item | item | item | Subsequent event | Weighted average | Minimum | Minimum | Maximum | Maximum | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | RMBS investment purchased at par | RMBS investment purchased at par | RMBS investment purchased at premium | RMBS investment purchased at discount | RMBS investment purchased at discount | |||||||
Weighted average | item | item | item | item | item | ||||||||||||||||||||||
Held-to-maturity securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44,431,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized Cost | ' | 42,986,980 | ' | 407,514 | 167,196 | 8,742,011 | 9,496,933 | 24,173,326 | ' | ' | 42,986,980 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | ' | 42,986,980 | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | 42,986,980 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Gain | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 169,450 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,306 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,153,124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities | ' | 16 | ' | 2 | 1 | 3 | 1 | 9 | ' | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of Total | ' | 100.00% | ' | 1.00% | 1.00% | 20.00% | 22.00% | 56.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investments purchased at par | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 8 | ' | ' | ' |
Number of investments purchased at premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Number of investments purchased at discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 |
Purchase price | 29,024,327 | 69,041,570 | 36,464,628 | ' | ' | ' | ' | ' | ' | 85,300,000 | 84,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 | 31,800,000 | 22,900,000 | 25,800,000 | 14,400,000 |
Premium paid to acquire investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Discount received to acquire investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | 1,500,000 |
Total principal paydowns | 38,614,122 | 55,895,146 | 6,515,800 | ' | ' | ' | ' | ' | ' | 31,900,000 | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 38,600,000 | 55,200,000 | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.34% | ' | ' | ' | ' | ' | ' | ' | ' | 2.72% | ' | ' | ' | ' | ' |
Stated maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '23 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | '19 years | ' | ' | ' | ' | ' |
Estimated remaining life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 9 months 18 days | ' | ' | ' | ' | ' |
Maturing after one year through five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturing after ten years | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments financed with a repurchase agreement with a financial institution | ' | ' | ' | ' | ' | ' | ' | ' | 36,000,000 | 52,400,000 | 71,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 55,500,000 | ' | ' | ' | ' | ' | ' |
Percentage of finance to individual investment by financial institution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 80.00% | 90.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt paid down due to principal paydowns received | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,700,000 | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | 30,900,000 | 45,900,000 | ' | ' | ' | ' | ' | ' |
Total debt amount | 159,125,023 | 130,661,619 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,900,000 | 35,800,000 | ' | ' | ' | ' | ' | ' |
Proceeds from sale of securities | ' | ' | ' | ' | ' | ' | ' | ' | 48,500,000 | 61,400,000 | ' | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium amortized/accretion of discount into interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | 100,000 | -300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Securities_Details_3
Securities (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Held-to-maturity securities | ' | ' |
Weighted average yield (as a percent) | 4.29% | 4.51% |
Residential mortgage-backed security (RMBS) | ' | ' |
Held-to-maturity securities | ' | ' |
Number of investments acquired with deteriorated credit quality had accretable yields | 2 | 1 |
Aggregate carrying value of investment with deteriorated credit quality | 25.8 | 9.5 |
Investments_in_Equity_Affiliat2
Investments in Equity Affiliates (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | $4,680,306 | $59,581,242 |
Unpaid Principal Balance of Loans to Equity Affiliates | 139,331,958 | ' |
Lightstone Value Plus REIT L.P | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 1,894,727 | 55,988,409 |
West Shore Cafe | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 1,690,280 | 1,821,536 |
Issuers of Junior Subordinated Notes | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 578,000 | 578,000 |
JT Prime | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 425,000 | 851,000 |
930 Flushing & 80 Evergreen | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 92,199 | 342,197 |
Unpaid Principal Balance of Loans to Equity Affiliates | 23,200,145 | ' |
Lexford Portfolio | ' | ' |
Investment in Equity Affiliates | ' | ' |
Investment in Equity Affiliates | 100 | 100 |
Unpaid Principal Balance of Loans to Equity Affiliates | $116,131,813 | ' |
Investments_in_Equity_Affiliat3
Investments in Equity Affiliates (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | |
Lightstone Value Plus REIT L.P | Lightstone Value Plus REIT L.P | Lightstone Value Plus REIT L.P | Lightstone Value Plus REIT L.P | Lightstone Value Plus REIT L.P | JT Prime | ||||
Investment through consolidated entity | Investment through consolidated entity | Investment through consolidated entity | |||||||
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment made | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 |
Noncontrolling interest in equity method investment acquired (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% |
Ownership percentage | ' | ' | ' | ' | ' | 66.70% | ' | ' | ' |
Proceeds from equity affiliates | 114,277 | 97,863 | 96,991 | 2,000,000 | ' | 1,800,000 | 2,700,000 | 2,700,000 | 400,000 |
Secured debt | 639,622,981 | 812,452,845 | ' | ' | ' | 50,200,000 | ' | ' | ' |
Equity investment, balance | ' | ' | ' | ' | 1,900,000 | 56,000,000 | ' | ' | ' |
Preferred return on investment (as a percent) | ' | ' | ' | ' | ' | 4.63% | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | 4.00% | ' | ' | ' |
Interest expense | $36,061,000 | $36,315,000 | $6,944,000 | ' | ' | $1,300,000 | $2,000,000 | $2,000,000 | ' |
Investments_in_Equity_Affiliat4
Investments in Equity Affiliates (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss (income) from equity affiliates | ($40,937) | $81,723 | $81,804 | $81,885 | ($2,347) | $225,493 | $224,136 | $250,574 | $204,475 | $697,856 | ($3,671,386) |
Amount of payoff received on mortgage notes payable | ' | ' | ' | ' | ' | ' | ' | ' | 235,145,560 | 162,922,840 | 110,763,000 |
West Shore Cafe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest in equity method investment acquired (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Preferred return on investment (as a percent) | 20.00% | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Loss (income) from equity affiliates | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | ' |
Return on investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
West Shore Cafe | First mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of payoff received on mortgage notes payable | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' |
Interest rate (as a percent) | 10.50% | ' | ' | ' | ' | ' | ' | ' | 10.50% | ' | ' |
Issuers of Junior Subordinated Notes | Affiliate entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment made | ' | ' | ' | ' | ' | ' | ' | ' | $600,000 | ' | ' |
Ownership interest (as a percent) | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Number of affiliate entities formed | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Preferred stock, dividend, variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | ' |
Investments_in_Equity_Affiliat5
Investments in Equity Affiliates (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Bridge Loans | Bridge Loans | Mezzanine Loans | Mezzanine Loans | Preferred equity investments | Preferred equity investments | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | 930 Flushing & 80 Evergreen | Lexford Portfolio | Lexford Portfolio | Lexford Portfolio | ||||||||||||
item | Bridge Loans | Mezzanine Loans | Mezzanine Loans | Mezzanine Loans | Preferred equity investments | ||||||||||||||||||||||
Minimum | |||||||||||||||||||||||||||
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred interest in a joint venture (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 5.26% | 4.77% | ' | 5.11% | 4.87% | 7.02% | 4.94% | 7.20% | 6.04% | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Original variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' |
Original basis spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.23% | 4.23% | ' | 0.24% | ' | ' | ' |
Unpaid Principal Balance of Loans to Equity Affiliates | $139,331,958 | ' | ' | ' | ' | ' | ' | ' | $139,331,958 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $23,200,145 | ' | $22,700,000 | $500,000 | ' | ' | $116,131,813 | ' | ' |
Investment in Equity Affiliates | 4,680,306 | ' | ' | ' | 59,581,242 | ' | ' | ' | 4,680,306 | 59,581,242 | ' | ' | ' | ' | ' | ' | ' | ' | 92,199 | 342,197 | ' | ' | 500,000 | ' | 100 | 100 | ' |
Equity investment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Loss (income) from equity affiliates | -40,937 | 81,723 | 81,804 | 81,885 | -2,347 | 225,493 | 224,136 | 250,574 | 204,475 | 697,856 | -3,671,386 | ' | ' | ' | ' | ' | ' | 300,000 | 200,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Equity investment, balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 300,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Additional investment made by the company along with a consortium of independent outside investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 |
Interest held in the additional investment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 |
Equity investment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | $44,000 |
Investments_in_Equity_Affiliat6
Investments in Equity Affiliates (Details 5) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Dec. 31, 2013 | |
acre | acre | |
Investment in Equity Affiliates | ' | ' |
Face value | $52,500,000 | $52,500,000 |
St. John's Development | Bridge Loans | ' | ' |
Investment in Equity Affiliates | ' | ' |
Noncontrolling interest in equity method investment (as a percent) | 50.00% | ' |
Area of pledged usable land (in acres) | 20.5 | 20.5 |
Face value | 25,000,000 | 25,000,000 |
Original variable rate basis | ' | 'LIBOR |
Original basis spread (as a percent) | 6.48% | 6.48% |
LIBOR floor (as a percent) | 4.50% | 4.50% |
Fair value | $6,000,000 | $6,000,000 |
Investments_in_Equity_Affiliat7
Investments in Equity Affiliates (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2010 | 31-May-07 | Dec. 31, 2013 |
Mezzanine Loans | 450 West 33rd Street | 450 West 33rd Street | 450 West 33rd Street | 450 West 33rd Street | ||||
Joint venture members | ||||||||
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest retained | ' | ' | ' | ' | 2.00% | ' | ' | ' |
Property air rights retained | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Retained interest (as a percent) | ' | ' | ' | ' | 29.00% | ' | ' | ' |
Amount of new debt guaranteed | ' | ' | ' | ' | $76,300,000 | ' | ' | $258,100,000 |
Outstanding debt | ' | ' | ' | ' | 517,000,000 | ' | ' | ' |
Equity investment, balance | ' | ' | ' | ' | ' | 0 | ' | ' |
Debt sold to third party | ' | ' | ' | 50,000,000 | ' | ' | ' | ' |
Deferred revenue recorded as a result of the guarantee on a portion of the new debt | 77,123,133 | 77,123,133 | 77,100,000 | ' | ' | ' | 77,100,000 | ' |
Prepaid management fees | ' | ' | ' | ' | ' | ' | $19,000,000 | ' |
Investments_in_Equity_Affiliat8
Investments in Equity Affiliates (Details 7) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss (income) from equity affiliates | ($40,937) | $81,723 | $81,804 | $81,885 | ($2,347) | $225,493 | $224,136 | $250,574 | $204,475 | $697,856 | ($3,671,386) |
Ritz-Carlton Club | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in Equity Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest in equity method investment acquired (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 19.41% | ' | ' |
Return on investment (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Loss (income) from equity affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' |
Equity investment, balance | ' | ' | ' | ' | $0 | ' | ' | ' | ' | $0 | ' |
Investments_in_Equity_Affiliat9
Investments in Equity Affiliates (Details 8) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Cash and cash equivalents | $13,101,000 | $4,727,000 |
Real estate assets | 697,484,000 | 699,474,000 |
Other assets | 19,618,000 | 22,473,000 |
Total assets | 730,203,000 | 726,674,000 |
Liabilities: | ' | ' |
Notes payable | 734,693,000 | 737,350,000 |
Other liabilities | 19,607,000 | 23,796,000 |
Total liabilities | 754,300,000 | 761,146,000 |
Stockholders' equity Arbor | 4,102,000 | 3,015,000 |
Stockholders' (deficit) equity | -28,199,000 | -37,487,000 |
Total stockholders' (deficit) equity | -24,097,000 | -34,472,000 |
Total liabilities and deficit | 730,203,000 | 726,674,000 |
Investment in Equity Affiliates | ' | ' |
Cost method investments | ' | 56,000,000 |
Investment in Equity Affiliates | 4,680,306 | 59,581,242 |
Issuers of Junior Subordinated Notes | ' | ' |
Investment in Equity Affiliates | ' | ' |
Equity Investment | 600,000 | 600,000 |
Investment in Equity Affiliates | $578,000 | $578,000 |
Recovered_Sheet1
Investments in Equity Affiliates (Details 9) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental income | ' | ' | ' | ' | ' | ' | ' | ' | $85,551,000 | $80,472,000 | $10,626,000 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 478,000 | 813,000 | 814,000 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 5,709,000 | 8,619,000 | 13,299,000 |
Reimbursement income | ' | ' | ' | ' | ' | ' | ' | ' | 6,653,000 | 5,427,000 | 461,000 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 6,686,000 | 6,436,000 | 3,268,000 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 105,077,000 | 101,767,000 | 28,468,000 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 58,265,000 | 60,257,000 | 16,749,000 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 36,061,000 | 36,315,000 | 6,944,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 23,345,000 | 22,283,000 | 2,725,000 |
Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 493,000 | 27,000 | 619,000 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 118,164,000 | 118,882,000 | 27,037,000 |
Net (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -13,087,000 | -17,115,000 | 1,431,000 |
Arbor's Share of net (loss) income | ' | ' | ' | ' | ' | ' | ' | ' | -204,000 | -698,000 | -218,000 |
Gain on the sale of an equity method investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 |
(Loss) income from equity affiliates | $40,937 | ($81,723) | ($81,804) | ($81,885) | $2,347 | ($225,493) | ($224,136) | ($250,574) | ($204,475) | ($697,856) | $3,671,386 |
Real_Estate_Owned_and_HeldForS2
Real Estate Owned and Held-For-Sale (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | |
Multifamily Portfolio | Multifamily Portfolio | Hotel Portfolio | Hotel Portfolio | Land | Land | Land | Land | Land | Land | Building and intangible assets | Building and intangible assets | Building and intangible assets | Building and intangible assets | Building and intangible assets | Building and intangible assets | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate owned | Real Estate held for sale | Real Estate held for sale | First lien mortgage | ||||
Multifamily Portfolio | Multifamily Portfolio | Hotel Portfolio | Hotel Portfolio | Multifamily Portfolio | Multifamily Portfolio | Hotel Portfolio | Hotel Portfolio | Multifamily Portfolio | Multifamily Portfolio | Multifamily Portfolio | Hotel Portfolio | Hotel Portfolio | Hotel Portfolio | Multifamily Portfolio | Multifamily Portfolio | |||||||||||||||
item | item | item | Florida | Florida | Florida | item | ||||||||||||||||||||||||
item | item | item | ||||||||||||||||||||||||||||
Real Estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate owned, gross | ' | ' | ' | ' | ' | ' | ' | $22,276,230 | $26,544,698 | $11,382,579 | $15,651,047 | $10,893,651 | $10,893,651 | $107,748,075 | $109,693,899 | $46,115,430 | $52,747,149 | $61,632,645 | $56,946,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Accumulated depreciation and amortization | -18,306,128 | ' | -12,090,398 | -8,598,915 | -6,216,409 | -9,707,213 | -5,873,989 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate owned, net | 111,718,177 | ' | 124,148,199 | 48,899,094 | 62,181,787 | 62,819,083 | 61,966,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties classified as real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 7 | 7 | 5 | 5 | 6 | ' | ' | ' |
Weighted average occupancy rate of properties classified as real estate owned (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | 85.00% | 79.00% | 48.00% | 48.00% | 46.00% | ' | ' | ' |
Impairment loss on real estate owned | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of weighted average daily rate of properties classified as real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,000,000 | 86,000,000 | 88,000,000 | ' | ' | ' |
Amount of weighted average daily rate of properties classified as real estate owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | 41,000,000 | 40,000,000 | ' | ' | ' |
Mortgage note payable - real estate owned | 42,745,650 | ' | 53,751,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,700,000 | 53,800,000 | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on real estate held-for-sale | ' | -1,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,000,000 | ' | ' | ' | ' | ' | -1,450,000 | ' | ' |
Number of real estate properties classified as held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Carrying value of real estate properties classified as held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,500,000 | 11,000,000 |
Restricted cash due to escrow requirement | $54,962,316 | ' | $42,535,514 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real_Estate_Owned_and_HeldForS3
Real Estate Owned and Held-For-Sale (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage notes payable-held-for-sale | $11,005,354 | ' | ' | ' | ' | ' | ' | ' | $11,005,354 | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,450,000 |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | 466,310 | ' | ' | 3,487,145 | ' | 3,953,455 | ' |
(Loss) income from discontinued operations | -172,644 | -79,716 | -90,191 | -101,572 | 368,100 | -87,855 | 1,102,794 | 3,625,787 | -444,123 | 5,008,826 | -2,999,892 |
Real Estate held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property operating income | ' | ' | ' | ' | ' | ' | ' | ' | 2,297,902 | 3,420,885 | 5,011,311 |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property operating expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,159,805 | 2,964,038 | 5,399,589 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 582,220 | 576,596 | 1,161,614 |
Impairment loss on real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,450,000 |
Gain on reversal of accrued liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,175,120 | ' |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,953,455 | ' |
(Loss) income from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | -444,123 | 5,008,826 | -2,999,892 |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' |
Real Estate held for sale | First mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) income from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' |
Real Estate held for sale | Hotel Portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' |
Number of properties sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Real Estate held for sale | Hotel Portfolio | St. Louis, Missouri | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss on real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,500,000 |
Real Estate held for sale | Hotel Portfolio | St. Louis, Missouri | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' |
Real Estate held for sale | Multifamily Portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage notes payable-held-for-sale | $11,000,000 | ' | ' | ' | ' | ' | ' | ' | $11,000,000 | ' | ' |
Debt_Obligations_Details
Debt Obligations (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Jul. 31, 2011 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Feb. 28, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-13 | Jan. 31, 2013 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | 31-May-13 | |
item | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Repurchase agreements and credit facilities | Repurchase agreements and credit facilities | Repurchase agreement | Repurchase agreement | Repurchase agreement, one | Repurchase agreement, one | Repurchase agreement, one | Repurchase agreement, one | Repurchase agreement, one | Repurchase agreement, two | Repurchase agreement, two | Repurchase agreement, two | Repurchase agreement, two | Repurchase agreement, two | Repurchase agreement, two | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $75.0 million warehousing credit facility | $50.0 million warehousing credit facility | $50.0 million warehousing credit facility | $50.0 million warehousing credit facility | $50.0 million warehousing credit facility | $40.0 million warehousing credit facility | $40.0 million warehousing credit facility | $40.0 million warehousing credit facility | $40.0 million warehousing credit facility | $40.0 million warehousing credit facility | $40.0 million warehousing credit facility | $17.3 million warehousing credit facility | $17.3 million warehousing credit facility | $17.3 million warehousing credit facility | $12.6 million warehousing credit facility | $12.6 million warehousing credit facility | $12.6 million warehousing credit facility | $12.6 million warehousing credit facility | $30.0 million warehousing credit facility | $30.0 million warehousing credit facility | $30.0 million warehousing credit facility | $30.0 million warehousing credit facility | $30.0 million warehousing credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | ||
item | item | Minimum | Minimum | Maximum | Maximum | item | item | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Minimum | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | Residential mortgage-backed security (RMBS) | item | Minimum | Maximum | Minimum | Maximum | Minimum | Minimum | Maximum | LIBOR | LIBOR | Prime | LIBOR | Prime | Minimum | Maximum | First 5.0 million | Excess of 5.0 million | |||||||||||||||||||||||||||
item | item | Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Carrying Value, Total repurchase agreements and credit facilities | $130,661,619 | $159,125,023 | ' | ' | ' | ' | ' | ' | ' | $159,125,023 | $130,661,619 | ' | ' | $12,497,000 | $35,072,000 | ' | ' | ' | $14,425,553 | $689,619 | $14,400,000 | ' | ' | ' | ' | ' | $33,300,540 | ' | $50,000,000 | ' | ' | ' | $30,838,180 | ' | ' | ' | $15,063,750 | ' | ' | ' | ' | $17,300,000 | ' | ' | ' | $12,600,000 | ' | ' | ' | $33,000,000 | $33,000,000 | ' | ' | ' | ' | ' | $20,000,000 | $15,000,000 | ' | ' |
Collateral Carrying Value, Total repurchase agreements and credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | 203,760,597 | 162,506,769 | ' | ' | 15,536,049 | 43,604,281 | ' | ' | ' | 18,944,735 | 827,488 | ' | ' | ' | ' | ' | ' | 45,705,813 | ' | 70,075,000 | ' | ' | ' | 46,774,000 | ' | ' | ' | 21,800,000 | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | 18,000,000 | ' | ' | ' | 55,000,000 | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate, description | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Prime | ' | ' | 'LIBOR | 'Prime | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Note Rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.16% | 3.25% | ' | ' | 1.75% | 1.75% | ' | ' | ' | 2.00% | 1.73% | ' | ' | ' | ' | ' | ' | 2.46% | ' | 3.00% | ' | ' | ' | 2.70% | ' | ' | ' | 2.20% | ' | ' | ' | ' | 3.00% | ' | ' | ' | 3.00% | ' | ' | ' | 2.45% | 2.45% | ' | ' | ' | ' | ' | 8.50% | 8.50% | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | 8.00% | ' | ' | ' | ' |
Non-use fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | ' | ' | 8.50% | 1.00% |
Threshold for non-use fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' |
Committed line | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | 75,000,000 | 75,000,000 | ' | ' | ' | 50,000,000 | 50,000,000 | ' | ' | 40,000,000 | 40,000,000 | ' | ' | ' | ' | 17,300,000 | ' | ' | 12,600,000 | 12,600,000 | ' | ' | ' | 33,000,000 | 33,000,000 | ' | ' | ' | 20,000,000 | 15,000,000 | 20,000,000 | ' | ' | ' |
Number of interest rate swaps | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average note rate including certain fees and costs (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.57% | 3.82% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investments financed with a repurchase agreement with a financial institution | 16 | ' | ' | 2 | 1 | ' | ' | ' | ' | ' | ' | 4 | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase amount of securities financed by financial institution | ' | ' | 36,000,000 | 52,400,000 | 71,300,000 | ' | ' | ' | ' | ' | ' | 6,400,000 | 54,700,000 | ' | ' | ' | ' | ' | ' | ' | 15,600,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of debt | ' | ' | ' | 27,700,000 | 6,700,000 | ' | ' | ' | ' | ' | ' | 29,000,000 | 45,700,000 | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of finance to individual investment by financial institution | ' | ' | ' | ' | ' | 80.00% | 80.00% | 90.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | 60.00% | 90.00% | ' | ' | ' | ' | 75.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate, spread (as a percent) | ' | ' | ' | ' | ' | 1.25% | 1.25% | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | 1.25% | 2.00% | ' | ' | ' | ' | 1.80% | 1.85% | 2.25% | 2.75% | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | 2.75% | 2.75% | ' | ' | 2.75% | 2.75% | 2.50% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net worth required under covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Amount of the facility used to finance retail and office properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee upon closing (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 1.00% | ' | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | 0.45% | ' | 1.00% | 1.00% | ' | ' | ' | ' |
Extension of maturity date (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' |
Number of paydowns | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Paydowns (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advance rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | 75.00% | ' | ' | 70.00% | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period by which loans become past due requiring full payment of an advance (in days) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | '90 days | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible net worth including junior subordinated notes as equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities less subordinated debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | ' | ' | ' | ' |
Required compensating balance to be maintained by the entity and its affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance of facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,300,000 | ' | ' | ' | ' | ' | 30,800,000 | ' | ' | ' | 15,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | 33,000,000 | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' |
Warehousing period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Fee for not extending line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' |
Debt_Obligations_Details_2
Debt Obligations (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Jan. 19, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 11, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 14, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 14, 2006 | Dec. 31, 2013 | Dec. 31, 2012 |
Collateralized debt obligations | Collateralized debt obligations | Collateralized debt obligations | CDO I | CDO I | CDO I | CDO II | CDO II | CDO II | CDO II | CDO III | CDO III | CDO III | Revolving note class | Revolving note class | Revolving note facility | Revolving note facility | Revolving note facility | |||
item | item | item | item | item | Standard & Poor's CCC- rating | item | item | |||||||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Face Value | ' | ' | $619,553,858 | $791,638,670 | $42,800,000 | $305,000,000 | $126,753,077 | $133,994,136 | $356,000,000 | $196,046,587 | $231,186,301 | ' | $547,500,000 | $296,754,194 | $426,458,233 | ' | ' | ' | ' | ' |
Debt, Carrying Value | 639,622,981 | 812,452,845 | 639,622,981 | 812,452,845 | ' | ' | 132,399,560 | 139,856,472 | ' | 201,847,417 | 237,209,429 | ' | ' | 305,376,004 | 435,386,944 | 257,400,000 | 350,800,000 | ' | ' | ' |
Collateral Loans, Unpaid Principal | ' | ' | 1,042,692,660 | 1,210,552,243 | ' | ' | 284,758,473 | 299,881,599 | ' | 362,150,693 | 395,266,909 | ' | ' | 395,783,494 | 515,403,735 | ' | ' | ' | ' | ' |
Collateral Loans, Carrying Value | ' | ' | 915,290,998 | 1,070,007,465 | ' | ' | 237,194,618 | 238,852,726 | ' | 312,859,875 | 345,919,525 | ' | ' | 365,236,505 | 485,235,214 | ' | ' | ' | ' | ' |
Collateral Securities, Face Value | 41,113,690 | 12,100,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral Securities, Carrying Value | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral Securities, Fair Value | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | 1,100,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral Cash, Restricted Cash | 54,962,316 | 42,535,514 | 25,407,559 | 26,326,468 | ' | ' | 79,986 | 1,036,155 | ' | 1,719,760 | 470,952 | ' | ' | 23,607,813 | 24,819,361 | ' | ' | ' | ' | ' |
Collateral-At-Risk | ' | ' | 607,184,618 | 640,741,168 | ' | ' | 179,466,954 | 207,772,049 | ' | 187,213,841 | 188,271,174 | ' | ' | 240,503,823 | 244,697,945 | ' | ' | ' | ' | ' |
Number of investment grade tranches issued | ' | ' | 23 | ' | ' | 4 | 4 | ' | 9 | 9 | ' | ' | 10 | 10 | ' | ' | ' | ' | ' | ' |
Variable interest rate, description | ' | ' | ' | ' | ' | 'three-month LIBOR | 'three-month LIBOR | ' | 'three-month LIBOR | 'three-month LIBOR | ' | ' | 'three-month LIBOR | 'three-month LIBOR | ' | ' | ' | ' | ' | ' |
Weighted average note rate (as a percent) | ' | ' | 2.18% | 1.87% | ' | ' | 3.12% | ' | ' | 3.74% | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' |
Weighted average note rate excluding the swap effect (as a percent) | ' | ' | 0.83% | 0.86% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average note rate including certain fees and costs (as a percent) | ' | ' | 3.26% | 2.77% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets serving as collateral | ' | ' | ' | ' | ' | 469,000,000 | ' | ' | 475,000,000 | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' |
Variable rate, spread (as a percent) | ' | ' | ' | ' | ' | 0.77% | ' | ' | 0.74% | ' | ' | ' | 0.44% | ' | ' | ' | ' | ' | ' | ' |
Issuance costs | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | 6,200,000 | ' | ' | ' | 9,700,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds received from loan repayments held as collateral | ' | ' | ' | ' | ' | ' | 7,200,000 | 26,400,000 | ' | 34,100,000 | 46,000,000 | ' | ' | 120,800,000 | 50,700,000 | ' | ' | ' | ' | ' |
Revolving note amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | $48,000,000 | $84,600,000 |
Commitment fee on the undrawn portion (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.22% | ' | ' |
Debt_Obligations_Details_3
Debt Obligations (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Junior subordinated notes | Junior subordinated notes | Collateralized debt obligations | Collateralized debt obligations | Collateralized debt obligations | Collateralized debt obligations | Class B | Class B | Class C | Class C | Class D | Class D | Class E | Class E | Class F | Class F | Class G | Class H | Class H | |||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,935,088 | $66,229,151 | $21,303,941 | ' | $13,000,000 | $5,654,540 | $3,329,509 | $7,005,291 | $13,350,000 | $2,433,912 | $13,765,276 | $2,291,855 | $9,708,556 | $3,918,343 | $8,672,039 | $9,935,088 | $4,403,771 |
Gain | 1,167,772 | 3,763,000 | 4,144,688 | 20,968,214 | 5,346,121 | 4,930,772 | 30,459,023 | 10,878,218 | ' | ' | 4,930,772 | 30,459,023 | 10,878,217 | ' | 4,615,000 | 2,086,799 | 1,200,182 | 3,502,815 | 5,819,066 | 1,428,950 | 6,445,033 | 1,403,761 | 5,048,417 | 2,455,892 | 4,777,138 | 4,930,772 | 2,554,187 |
Face amount of debt instrument re-issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 289,400,000 | 619,553,858 | 791,638,670 | ' | 42,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of retired debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | 114,100,000 | 258,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the entity's bonds that were exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated interest due on reissued bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,100,000 | ' | ' | $22,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Obligations_Details_4
Debt Obligations (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2012 |
Collateralized loan obligation | Collateralized loan obligation | CLO I | CLO I | CLO I | CLO II | CLO II | Class A senior secured floating rate notes | Class A senior secured floating rate notes | Class B secured floating rate notes | Class B secured floating rate notes | |||
item | item | item | item | ||||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Face Value | ' | ' | $264,500,000 | ' | ' | $87,500,000 | $87,500,000 | $260,000,000 | $177,000,000 | $156,000,000 | $75,000,000 | $21,000,000 | $12,500,000 |
Debt, Carrying Value | 639,622,981 | 812,452,845 | 264,500,000 | ' | ' | 87,500,000 | 87,500,000 | ' | 177,000,000 | ' | ' | ' | ' |
Collateral Loans, Unpaid Principal | ' | ' | 369,430,718 | ' | 125,100,000 | 114,414,154 | 125,086,650 | ' | 255,016,564 | ' | ' | ' | ' |
Collateral Loans, Carrying Value | ' | ' | 367,930,248 | ' | ' | 113,940,857 | 124,525,103 | 210,000,000 | 253,989,391 | ' | ' | ' | ' |
Collateral Cash, Restricted Cash | 54,962,316 | 42,535,514 | 15,294,171 | ' | ' | 10,672,496 | ' | ' | 4,621,675 | ' | ' | ' | ' |
Number of investment grade tranches issued | ' | ' | ' | ' | 2 | 2 | ' | 2 | 2 | ' | ' | ' | ' |
Variable interest rate, description | ' | ' | ' | ' | 'one-month LIBOR | 'three-month LIBOR | ' | 'one-month LIBOR | 'three-month LIBOR | ' | ' | ' | ' |
Weighted average note rate (as a percent) | ' | ' | 2.91% | 3.65% | 3.39% | 3.61% | ' | 2.36% | 2.56% | ' | ' | ' | ' |
Replacement period | ' | ' | ' | ' | '2 years | ' | ' | '2 years | ' | ' | ' | ' | ' |
Number of classes of secured floating rate notes | ' | ' | ' | ' | 2 | ' | ' | 2 | ' | ' | ' | ' | ' |
Notional amount of equity interest retained | ' | ' | ' | ' | 37,600,000 | ' | ' | 83,000,000 | ' | ' | ' | ' | ' |
Issuance costs | ' | ' | ' | ' | 2,400,000 | ' | ' | 3,200,000 | ' | ' | ' | ' | ' |
Weighted average note rate including certain fees and costs (as a percent) | ' | ' | 3.49% | 4.33% | 4.35% | ' | ' | 3.00% | ' | ' | ' | ' | ' |
Proceeds from additional loan obligations | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' | ' |
Period of additional loan obligations | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' |
Debt_Obligations_Details_5
Debt Obligations (Details 5) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Apr. 30, 2012 | Mar. 31, 2012 | |
Debt Obligations | ' | ' | ' | ' | ' | ' | ' |
Debt Carrying Value | $159,291,427 | $158,767,145 | ' | ' | ' | ' | ' |
Common stock issued to entity | ' | ' | ' | ' | 7,400,000 | ' | ' |
Junior subordinated notes | ' | ' | ' | ' | ' | ' | ' |
Debt Obligations | ' | ' | ' | ' | ' | ' | ' |
Debt Carrying Value | 159,300,000 | 158,800,000 | ' | ' | ' | ' | ' |
Deferred amount Due at maturity | 16,600,000 | 17,100,000 | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | 289,400,000 | ' | ' |
Variable interest rate, description | 'three-month LIBOR | 'three-month LIBOR | 'three-month LIBOR | ' | ' | ' | ' |
Nonredeemable period from issue date (in years) | '2 years | ' | ' | ' | ' | ' | ' |
Weighted average note rate (as a percent) | 3.01% | 3.08% | ' | ' | ' | ' | ' |
Effective rate (as a percent) | 3.06% | 3.12% | ' | ' | ' | ' | ' |
Weighted average note rate including certain fees and costs (as a percent) | 3.18% | 3.35% | ' | ' | ' | ' | ' |
Amount of retired debt instrument | ' | ' | ' | 114,100,000 | 258,400,000 | ' | ' |
Percentage of original face amount at which debt was issued | ' | ' | ' | ' | 112.00% | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | 0.50% | 0.50% |
Weighted average spread (as a percent) | 2.77% | 2.77% | 2.77% | ' | ' | ' | ' |
Percentage above face value at which debt was issued (as a percent) | 12.00% | ' | ' | ' | ' | ' | ' |
Transaction fees related to the restructuring of notes | 1,300,000 | ' | ' | ' | ' | ' | ' |
Retired outstanding trust preferred securities | ' | ' | ' | ' | ' | ' | ' |
Debt Obligations | ' | ' | ' | ' | ' | ' | ' |
Amount of retired debt instrument | ' | ' | ' | ' | $265,800,000 | ' | ' |
Debt_Obligations_Details_6
Debt Obligations (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
Notes payable | Notes payable | Note payable relating to investment in equity affiliate, expiration July 2016, interest is fixed, the weighted average note rate was 4.06% | Note payable relating to investment in equity affiliate, expiration July 2016, interest is fixed, the weighted average note rate was 4.06% | Junior loan participation, secured by the Company's interest in a first mortgage loan with a principal balance of $1.3 million, participation interest was based on a portion of the interest received from the loan which has a fixed rate of 9.57% | Junior loan participation, secured by the Company's interest in a first mortgage loan with a principal balance of $1.3 million, participation interest was based on a portion of the interest received from the loan which has a fixed rate of 9.57% | Junior loan participation, maturity of March 2014, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 15.00% | Junior loan participation, maturity of March 2014, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 15.00% | Junior loan participation, maturity of March 2014, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 15.00% | Junior loan participation, maturity of October 2018, secured by the Company's interest in a mezzanine loan with a principal balance of $3.0 million, participation interest is a fixed rate of 13.00% | ||
item | item | Mezzanine Loans | Mezzanine Loans | ||||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Carrying Value | ' | $2,500,000 | $51,457,708 | $50,200,000 | $50,157,708 | $1,300,000 | $1,300,000 | $450,000 | ' | ' | $750,000 |
Collateral Carrying Value | ' | 2,500,000 | 57,288,411 | ' | 55,988,411 | 1,300,000 | 1,300,000 | 450,000 | ' | ' | 750,000 |
Principal balance | 52,500,000 | ' | ' | ' | ' | 1,300,000 | 1,300,000 | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
Weighted average note rate (as a percent) | ' | 4.26% | 3.91% | ' | 4.06% | ' | ' | ' | ' | ' | ' |
Number of interest rate swaps | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
New note payable | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | $500,000 | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | 9.57% | 9.57% | 15.00% | ' | ' | 13.00% |
Debt_Obligations_Details_7
Debt Obligations (Details 7) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | |
Mortgage Notes Payable - Real Estate Owned with maturity date of March 2014 | Mortgage Notes Payable - Real Estate Owned with maturity date of March 2014 | Mortgage Notes Payable - Real Estate Owned with maturity date of March 2014 | Mortgage Notes Payable - Real Estate Owned with maturity date of March 2014 | Mortgage Notes Payable - Real Estate Owned with maturity date of March 2014 | ||||
Multifamily Portfolio | First mortgage | First mortgage | First mortgage | First mortgage | ||||
item | item | Multifamily Portfolio | ||||||
Debt Obligations | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage note payable - real estate owned | $42,745,650 | $53,751,004 | ' | ' | ' | $53,800,000 | $42,700,000 | ' |
New mortgage note payable assumed | 591,537,200 | 275,633,168 | 206,477,919 | ' | ' | 55,400,000 | ' | ' |
Secured amount of loan | ' | ' | ' | ' | ' | ' | ' | 29,800,000 |
Variable interest rate, description | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' |
Variable rate, spread (as a percent) | ' | ' | ' | ' | ' | 1.23% | ' | ' |
Optional extension period (in years) | ' | ' | ' | ' | ' | '1 year 3 months | ' | ' |
Number of properties sold | ' | ' | ' | 1 | ' | ' | ' | ' |
Number of real estate properties classified as held-for-sale | ' | ' | ' | ' | 1 | ' | ' | ' |
Investment classified as real estate held-for-sale | 11,540,649 | ' | 22,094,412 | ' | 11,000,000 | ' | ' | ' |
Proceeds from sale of properties | $235,145,560 | $162,922,840 | $110,763,000 | $1,600,000 | ' | ' | ' | ' |
Debt_Obligations_Details_8
Debt Obligations (Details 8) (USD $) | 1 Months Ended | ||||||||||||||||||||||||
Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | |
CDO I | CDO I | CDO I | CDO I | CDO I | CDO II | CDO II | CDO II | CDO II | CDO II | CDO III | CDO III | CDO III | CDO III | CDO III | CLO I | CLO I | CLO I | CLO I | CLO I | CLO II | CLO II | CLO II | CLO II | Junior subordinated notes | |
Debt Covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current overcollateralization ratio for cash flow triggers (as a percent) | 167.15% | 166.88% | 176.69% | 174.76% | 172.73% | 137.87% | 133.77% | 139.10% | 138.97% | 138.89% | 107.80% | 106.64% | 106.61% | 106.56% | 105.90% | 142.96% | 142.96% | 142.96% | 142.96% | 142.96% | 146.89% | 146.89% | 146.89% | 146.89% | ' |
Limit overcollateralization ratio for cash flow triggers (as a percent) | 145.00% | ' | ' | ' | ' | 127.30% | ' | ' | ' | ' | 105.60% | ' | ' | ' | ' | 137.86% | ' | ' | ' | ' | 144.25% | ' | ' | ' | ' |
Current interest coverage ratio for cash flow triggers (as a percent) | 547.23% | ' | ' | ' | ' | 430.96% | ' | ' | ' | ' | 779.18% | ' | ' | ' | ' | 289.34% | ' | ' | ' | ' | 325.74% | ' | ' | ' | ' |
Limit interest coverage ratio for cash flow triggers (as a percent) | 160.00% | ' | ' | ' | ' | 147.30% | ' | ' | ' | ' | 105.60% | ' | ' | ' | ' | 120.00% | ' | ' | ' | ' | 120.00% | ' | ' | ' | ' |
Amount payable on default of senior debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 |
Noncontrolling_Interest_Detail
Noncontrolling Interest (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Noncontrolling Interest | ' | ' | ' |
Noncontrolling interest in the entity | $0 | $1,931,773 | ' |
Third party's interest in the equity of a consolidated subsidiary | ' | 33.00% | ' |
Income attributable to noncontrolling interest | 100,000 | 200,000 | ' |
Distributions attributable to noncontrolling interest | 2,055,972 | 217,922 | 281,390 |
Note payable related to the exchange of POM profits interest transaction | ' | ' | ' |
Noncontrolling Interest | ' | ' | ' |
Distributions attributable to noncontrolling interest | $900,000 | ' | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
item | ||||
Variable Interest Entities | ' | ' | ' | ' |
Number of consolidated CDO subsidiaries which qualify as VIEs where the reporting entity is primary beneficiary | 3 | ' | ' | ' |
Number of consolidated CLO subsidiaries which qualify as VIEs where the reporting entity is primary beneficiary | 2 | ' | ' | ' |
Loans to VIEs | $1,660,195,301 | $1,501,056,647 | ' | ' |
Loan loss reserves related to VIEs | 122,277,411 | 161,706,313 | 185,381,855 | 205,470,302 |
Non-performing | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Loans to VIEs | 10,700,000 | 14,900,000 | ' | ' |
Unconsolidated VIEs | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Number of VIEs where the reporting entity is not VIE's primary beneficiary | 40 | ' | ' | ' |
Carrying Amount | 644,970,970 | ' | ' | ' |
Exposure to real estate debt | 3,700,000,000 | ' | ' | ' |
Loans to VIEs | 185,000,000 | ' | ' | ' |
Loan loss reserves related to VIEs | 110,900,000 | ' | ' | ' |
Unconsolidated VIEs | Non-performing | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Loans to VIEs | 44,300,000 | ' | ' | ' |
Unconsolidated VIEs | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | 644,970,970 | ' | ' | ' |
Loans | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Carrying Amount | 417,998,101 | ' | ' | ' |
Loans | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | 417,998,101 | ' | ' | ' |
Loans and equity investments | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Carrying Amount | 115,253,740 | ' | ' | ' |
Loans and equity investments | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | 115,253,740 | ' | ' | ' |
RMBS | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Carrying Amount | 109,041,129 | ' | ' | ' |
RMBS | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | 109,041,129 | ' | ' | ' |
CMBS | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Carrying Amount | 2,100,000 | ' | ' | ' |
CMBS | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | 2,100,000 | ' | ' | ' |
Junior subordinated notes | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Carrying Amount | 578,000 | ' | ' | ' |
Junior subordinated notes | Maximum | ' | ' | ' | ' |
Variable Interest Entities | ' | ' | ' | ' |
Exposure to loss | $578,000 | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Non-Qualifying | Basis Swaps | ' | ' |
Derivative Financial Instruments | ' | ' |
Count | 1 | 8 |
Notional Value, classified in Other Assets | $11,600,000 | $603,524,000 |
Fair Value, classified in Other Assets | 5,000 | 128,000 |
Number of swaps matured | 7 | ' |
Notional value of matured instruments | 499,400,000 | 110,100,000 |
Number of derivative instruments, the notional amount of which decreased | 1 | 4 |
Decrease in notional value | 92,600,000 | 140,400,000 |
Non-Qualifying | LIBOR Caps | ' | ' |
Derivative Financial Instruments | ' | ' |
Count | ' | 1 |
Notional Value, classified in Other Assets | ' | 6,000,000 |
Notional value of matured instruments | 6,000,000 | ' |
Non-Qualifying | LIBOR Caps | Minimum | ' | ' |
Derivative Financial Instruments | ' | ' |
Cap rate (as a percent) | 1.00% | ' |
Non-Qualifying | LIBOR Caps | Maximum | ' | ' |
Derivative Financial Instruments | ' | ' |
Cap rate (as a percent) | 2.00% | ' |
Non-Qualifying | Forward Contracts | ' | ' |
Derivative Financial Instruments | ' | ' |
Count | 8 | 12 |
Fair Value, classified in Other Assets | 6,397,000 | 10,800,000 |
Qualifying | LIBOR Caps | ' | ' |
Derivative Financial Instruments | ' | ' |
Count | ' | 1 |
Notional Value, classified in Other Assets | ' | 73,301,000 |
Notional value of matured instruments | 73,300,000 | ' |
Qualifying | Interest Rate Swaps | ' | ' |
Derivative Financial Instruments | ' | ' |
Count | 14 | 14 |
Notional Value, classified in Other Liabilities | 297,532,000 | 312,227,000 |
Fair Value, classified in Other Liabilities | -24,794,000 | -37,755,000 |
Number of swaps matured | ' | 10 |
Notional value of matured instruments | ' | 196,400,000 |
Decrease in notional value | $14,500,000 | $6,400,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | RMBS | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Non-Qualifying | Qualifying | Qualifying | Qualifying | Qualifying | Terminated hedges | Terminated hedges | Terminated hedges | Terminated hedges | ||||
item | item | Minimum | Minimum | Maximum | Maximum | Weighted average | Basis Swaps | Basis Swaps | Basis Swaps | Basis Swaps / Caps | Basis Swaps / Caps | Basis Swaps / Caps | Forward Contracts | Forward Contracts | Forward Contracts | Forward Contracts | Interest Rate Swaps / Caps | Interest Rate Swaps / Caps | Interest Rate Swaps / Caps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps / Caps | ||||||
Interest Expense | Interest Expense | Interest Expense | Other Income | Other Income | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value | ' | ' | ' | ' | ($1,700,000) | $200,000 | ' | ' | ' | ' | ' | ($100,000) | ($1,400,000) | $200,000 | ($12,000) | ($22,000) | $827,000 | ' | ' | ($1,676,000) | $167,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense expected to be reclassified from qualifying cash flow hedges over the next twelve months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,300,000 | ' | ' | ' | ' | ' | ' | ' |
Net deferred loss in accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | 2,200,000 | ' | ' |
Additional interest expense related to the amortization of the loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 900,000 | 1,800,000 | ' |
Reduction to interest expense related to the accretion of the net gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | 200,000 | ' |
Amount of net deferred loss expected to be recorded to interest expense over the next twelve months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 |
Fair Value, classified in Other Assets | ' | ' | ' | ' | 66,000,000 | 75,300,000 | ' | ' | ' | ' | ' | 5,000 | 128,000 | ' | ' | ' | ' | 6,397,000 | 10,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net losses in fair value of RMBS investments | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase financing | ' | ' | ' | ' | 59,600,000 | 64,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investments purchased | ' | ' | ' | ' | 9 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments purchased | 29,024,327 | 69,041,570 | 36,464,628 | ' | 85,300,000 | 84,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of repurchase agreement for financing the purchase of investments | ' | ' | ' | 36,000,000 | 52,400,000 | 71,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of finance to individual investment | ' | ' | ' | ' | ' | ' | 80.00% | 80.00% | 90.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate, spread (as a percent) | ' | ' | ' | ' | ' | ' | 1.25% | 1.25% | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate, description | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total principal paydowns | 38,614,122 | 55,895,146 | 6,515,800 | ' | 31,900,000 | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt paid down due to principal paydowns received | ' | ' | ' | ' | 27,700,000 | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investments sold | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate carrying value of investments sold | ' | ' | ' | 48,300,000 | 61,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of investments | ' | ' | ' | 48,500,000 | 61,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net gain on sale of investments | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | ' | ' | ' | ' | 1,900,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.34% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated maturity period (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '23 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated remaining life (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 520,000 | 7,699,000 | 20,698,000 | ' | ' | ' | ' |
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Expense (Effective Portion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -14,131,000 | -16,565,000 | -27,164,000 | ' | ' | ' | ' |
Cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as qualifying hedges | -26,300,000 | -40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as cash flow hedges attributable to fair value of qualifying cash flow hedges | -24,800,000 | -37,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as cash flow hedges attributable to deferred losses terminated interest swaps | -1,900,000 | -2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as cash flow hedges attributable to deferred gains on terminated interest swaps | 300,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivatives in a net liability position | -13,800,000 | -19,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral posted | $14,200,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets: | ' | ' |
Loans and investments, net | $1,523,699,653 | $1,325,667,053 |
Available-for-sale securities | 37,315,652 | 3,552,736 |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 159,125,023 | 130,661,619 |
Collateralized debt obligations | 639,622,981 | 812,452,845 |
Collateralized loan obligations | 264,500,000 | 87,500,000 |
Junior subordinated notes | 159,291,427 | 158,767,145 |
Notes payable | 2,500,000 | 51,457,708 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Loans and investments, net | 1,523,699,653 | 1,325,667,053 |
Available-for-sale securities | 37,315,652 | 3,552,736 |
Securities held-to-maturity, net | ' | 42,986,980 |
Derivative financial instruments | 6,402,336 | 10,927,551 |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 159,125,023 | 130,661,619 |
Collateralized debt obligations | 639,622,981 | 812,452,845 |
Collateralized loan obligations | 264,500,000 | 87,500,000 |
Junior subordinated notes | 159,291,427 | 158,767,145 |
Notes payable | 2,500,000 | 51,457,708 |
Mortgage note payable - real estate owned and held-for-sale | 53,751,004 | 53,751,004 |
Derivative financial instruments | 24,794,051 | 37,754,775 |
Estimated Fair Value | ' | ' |
Financial assets: | ' | ' |
Loans and investments, net | 1,550,248,793 | 1,316,001,339 |
Available-for-sale securities | 37,315,652 | 3,552,736 |
Securities held-to-maturity, net | ' | 43,153,124 |
Derivative financial instruments | 6,402,336 | 10,927,551 |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 158,735,570 | 130,363,126 |
Collateralized debt obligations | 521,938,885 | 590,901,757 |
Collateralized loan obligations | 266,436,250 | 87,500,000 |
Junior subordinated notes | 101,240,185 | 99,984,066 |
Notes payable | 2,487,287 | 46,743,406 |
Mortgage note payable - real estate owned and held-for-sale | 52,943,305 | 50,005,874 |
Derivative financial instruments | $24,794,051 | $37,754,775 |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||
Financial assets: | ' | ' |
Available-for-sale securities | $37,315,652 | $3,552,736 |
Allowance for Loan losses | 122,277,411 | 161,706,313 |
Number of impaired loans | 15 | ' |
Aggregate carrying value, before reserves | 207,471,246 | 240,211,152 |
Recurring basis | Carrying Value | ' | ' |
Financial assets: | ' | ' |
Available-for-sale securities | 37,315,652 | ' |
Derivative financial instruments | 6,402,336 | ' |
Financial liabilities: | ' | ' |
Derivative financial instruments | 24,794,051 | ' |
Recurring basis | Fair Value | ' | ' |
Financial assets: | ' | ' |
Available-for-sale securities | 37,315,652 | ' |
Derivative financial instruments | 6,402,336 | ' |
Financial liabilities: | ' | ' |
Derivative financial instruments | 24,794,051 | ' |
Recurring basis | Level 1 | ' | ' |
Financial assets: | ' | ' |
Available-for-sale securities | 734,866 | ' |
Recurring basis | Level 2 | ' | ' |
Financial assets: | ' | ' |
Derivative financial instruments | 5,483 | ' |
Financial liabilities: | ' | ' |
Derivative financial instruments | 24,794,051 | ' |
Recurring basis | Level 3 | ' | ' |
Financial assets: | ' | ' |
Available-for-sale securities | 36,580,786 | ' |
Derivative financial instruments | 6,396,853 | ' |
Nonrecurring basis | Carrying Value | ' | ' |
Financial assets: | ' | ' |
Impaired loans, net | 85,193,835 | ' |
Non-financial assets: | ' | ' |
Impaired real estate owned | 3,437,152 | ' |
Land investment | 6,061,498 | ' |
Nonrecurring basis | Fair Value | ' | ' |
Financial assets: | ' | ' |
Impaired loans, net | 103,951,397 | ' |
Non-financial assets: | ' | ' |
Impaired real estate owned | 3,437,152 | ' |
Land investment | 6,061,498 | ' |
Nonrecurring basis | Level 3 | ' | ' |
Financial assets: | ' | ' |
Impaired loans, net | 103,951,397 | ' |
Non-financial assets: | ' | ' |
Impaired real estate owned | 3,437,152 | ' |
Land investment | $6,061,498 | ' |
Fair_Value_Details_3
Fair Value (Details 3) (Recurring basis, Level 3, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Available-for-sale Securities | ' |
Financial assets | ' |
Balance at the beginning of the period | $3,200,000 |
Adjustments to fair value: | ' |
Additions | 34,480,786 |
Sales and settlements | -1,100,000 |
Balance at the end of the period | 36,580,786 |
Derivative Financial Instruments | ' |
Financial assets | ' |
Balance at the beginning of the period | 10,799,536 |
Adjustments to fair value: | ' |
Additions | 10,285,729 |
Paydowns | -4,468,205 |
Net changes in fair value | -1,675,629 |
Sales and settlements | -8,544,578 |
Balance at the end of the period | $6,396,853 |
Fair_Value_Details_4
Fair Value (Details 4) (Level 3, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Impaired real estate owned | $3,437,152 |
Discount rate (as a percent) | 10.00% |
Capitalization rate (as a percent) | 8.00% |
Revenue growth rate (as a percent) | 2.35% |
Comparable sales and discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Land investment | 6,061,498 |
Discount rate (as a percent) | 11.00% |
Dollar per acre | 293,000 |
Valuation models | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
RMBS | 34,480,786 |
Forward Contract Derivatives | 6,396,853 |
Multifamily Portfolio | Direct capitalization analysis and discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Impaired loans | 24,472,539 |
Multifamily Portfolio | Direct capitalization analysis and discounted cash flows | Minimum | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 7.50% |
Capitalization rate (as a percent) | 6.00% |
Revenue growth rate (as a percent) | 2.00% |
Multifamily Portfolio | Direct capitalization analysis and discounted cash flows | Maximum | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 8.00% |
Capitalization rate (as a percent) | 8.25% |
Revenue growth rate (as a percent) | 3.00% |
Multifamily Portfolio | Direct capitalization analysis and discounted cash flows | Weighted Average | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 6.30% |
Capitalization rate (as a percent) | 6.98% |
Revenue growth rate (as a percent) | 1.73% |
Office | Discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Impaired loans | 7,330,000 |
Office | Discounted cash flows | Minimum | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 9.25% |
Capitalization rate (as a percent) | 8.00% |
Revenue growth rate (as a percent) | 2.50% |
Office | Discounted cash flows | Maximum | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 10.00% |
Capitalization rate (as a percent) | 8.50% |
Revenue growth rate (as a percent) | 3.00% |
Office | Discounted cash flows | Weighted Average | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Discount rate (as a percent) | 9.45% |
Capitalization rate (as a percent) | 8.16% |
Revenue growth rate (as a percent) | 2.96% |
Land | Discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
Impaired loans | 72,148,858 |
Discount rate (as a percent) | 15.00% |
Capitalization rate (as a percent) | 7.25% |
Revenue growth rate (as a percent) | 3.00% |
CMBS | Discounted cash flows | ' |
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis | ' |
CMBS | $2,100,000 |
Discount rate (as a percent) | 17.17% |
Fair_Value_Details_5
Fair Value (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets: | ' | ' |
Loans and investments, net | $1,523,699,653 | $1,325,667,053 |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 159,125,023 | 130,661,619 |
Collateralized debt obligations | 639,622,981 | 812,452,845 |
Collateralized loan obligations | 264,500,000 | 87,500,000 |
Junior subordinated notes | 159,291,427 | 158,767,145 |
Notes payable | 2,500,000 | 51,457,708 |
Mortgage note payable - real estate owned and held-for-sale | 42,745,650 | 53,751,004 |
Carrying Value | ' | ' |
Financial assets: | ' | ' |
Loans and investments, net | 1,523,699,653 | ' |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 159,125,023 | ' |
Collateralized debt obligations | 639,622,981 | ' |
Collateralized loan obligations | 264,500,000 | ' |
Junior subordinated notes | 159,291,427 | ' |
Notes payable | 2,500,000 | ' |
Mortgage note payable - real estate owned and held-for-sale | 53,751,004 | ' |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Loans and investments, net | 1,550,248,793 | ' |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 158,735,570 | ' |
Collateralized debt obligations | 521,938,885 | ' |
Collateralized loan obligations | 266,436,250 | ' |
Junior subordinated notes | 101,240,185 | ' |
Notes payable | 2,487,287 | ' |
Mortgage note payable - real estate owned and held-for-sale | 52,943,305 | ' |
Level 3 | ' | ' |
Financial assets: | ' | ' |
Loans and investments, net | 1,550,248,793 | ' |
Financial liabilities: | ' | ' |
Repurchase agreements and credit facilities | 158,735,570 | ' |
Collateralized debt obligations | 521,938,885 | ' |
Collateralized loan obligations | 266,436,250 | ' |
Junior subordinated notes | 101,240,185 | ' |
Notes payable | 2,487,287 | ' |
Mortgage note payable - real estate owned and held-for-sale | $52,943,305 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Contractual Obligations, Payments Due by Period | ' |
2014 | $531.40 |
2015 | 203.4 |
2016 | 194.2 |
2017 | 106.3 |
2018 | 84.2 |
Thereafter | 175.9 |
Unfunded commitments related to loans and investments | 5.8 |
Available amount to fund unfunded commitments | $5.80 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | Dec. 31, 2013 | Jun. 15, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 28, 2013 |
In Millions, unless otherwise specified | Arbor ESH II, LLC | Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Lawsuits filed by Extended Stay Litigation Trust (the Trust) |
item | item | Fiduciary Duty Claims | Motion to amend the lawsuits | ||
item | item | ||||
Litigation | ' | ' | ' | ' | ' |
Number of lawsuits or complaints filed | ' | 3 | ' | 2 | ' |
Number of lawsuits filed in United States Bankruptcy Court | ' | 2 | ' | ' | ' |
Number of defendants | ' | ' | 73 | 2 | ' |
Number of defendants who are corporate and partnership entities | ' | ' | 55 | ' | 16 |
Number of defendants named in a legal action who are individuals | ' | ' | 18 | ' | 10 |
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. | $115 | ' | ' | ' | ' |
Number of lawsuits consolidated | ' | ' | ' | ' | 1 |
Number of defendants removed due to consolidation of lawsuits | ' | ' | ' | ' | 47 |
Number of defendants related to the entity | ' | ' | ' | ' | 0 |
Number of defendants remaining due to consolidation of lawsuits | ' | ' | ' | ' | 26 |
Number of lawsuits before amendment | ' | ' | ' | ' | 100 |
Number of lawsuits after amendment | ' | ' | ' | ' | 17 |
Aggregate amount which the Trust would be seeking from the affiliates of the entity | ' | ' | ' | ' | $139 |
Equity_Details
Equity (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 14, 2014 | 31-May-09 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Jul. 31, 2011 | Dec. 31, 2011 | Feb. 28, 2013 | Feb. 28, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2010 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | Jun. 30, 2012 | Jun. 30, 2003 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 14, 2014 | Feb. 28, 2014 | 2-May-13 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
ACM | ACM | ACM | ACM | Non-management members of the Board of Directors | Non-management members of the Board of Directors | Non-management members of the Board of Directors | Employees of the company and a related party | Employees of the company and a related party | Employees of the company and a related party | Employees of the company and a related party | Non-employees | Employees | Director who was also the corporate secretary | Director who was also the corporate secretary | Director is also an officer of the managing member of related party | Director is also an officer of the managing member of related party | Director who was re-appointed to the board of directors on December 19, 2011 | Director who was re-appointed to the board of directors on December 19, 2011 | Independent members | Independent members | 8.25% Series A cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | |||||
Restricted common stock | Restricted common stock | Employee compensation and benefits | Selling and administrative expense | Selling and administrative expense | ACM | ACM | ACM | ACM | ACM | ACM | Selling and administrative expense | ACM | ACM | Selling and administrative expense | Selling and administrative expense | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | Subsequent event | Subsequent event | Non-management members of the Board of Directors | Non-management members of the Board of Directors | Employees of the company and a related party | Employees of the company and a related party | Employees of the company and a related party | |||||||||||||||||||||
Maximum | Restricted common stock | Restricted common stock | Restricted common stock | Restricted common stock | Employee compensation and benefits | Selling and administrative expense | Restricted common stock | Restricted common stock | Selling and administrative expense | Selling and administrative expense | ACM | ACM | ACM | ||||||||||||||||||||||||||||||||||
Restricted common stock | Employee compensation and benefits | Selling and administrative expense | |||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 1,551,500 | 1,200,000 | 1,260,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | 7.75% | 8.25% | 8.25% | 7.75% | 7.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of preferred stock | $70,287,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $33,600,000 | ' | $28,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option exercised by underwriters (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 151,500 | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional net proceeds from exercise of option by underwriters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 6,000,000 | 5,625,000 | 3,500,000 | 3,500,000 | 67 | 17,625,000 | 7,000,000 | 666,927 | 0 | ' | ' | ' | ' | ' | ' |
Value of common shares issued to the public (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.08 | $8 | $5.80 | $5.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of shares under public offering | 134,176,328 | 39,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,600,000 | 40,900,000 | 43,000,000 | 19,200,000 | 17,500,000 | 1,005 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares which the entity may issue and sell through JMP | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | 7,500,000 | ' | ' | ' | ' | ' |
Number of shares of common stock remain available under shelf registration | ' | ' | 457,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate amount of securities for which the entity filed shelf registration statement | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of fully vested shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 90,000 | 105,000 | ' | ' | ' | ' | ' | ' | ' | 6,255 | ' | 10,000 | ' | 15,000 | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000 | ' | 250,000 | ' | ' |
Accrued deferred compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 200,000 | 400,000 | ' | ' | ' | 500,000 | ' | 100,000 | ' | 100,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 500,000 |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 192,750 | 200,000 | ' | ' | 82,500 | 45,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total grant date fair value | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | 700,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | 667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional stock reserved for issuance (in shares) | ' | ' | ' | 1,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | $200,000 | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' |
Equity_Details_2
Equity (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2009 | |
Warrants | ' | ' | ' |
Number of warrants issued | 1,000,000 | ' | 1,000,000 |
Warrant exercise price | $4 | ' | $4 |
Warrants exercised (in shares) | ' | 0 | ' |
Warrants exercisable at $3.50 | ' | ' | ' |
Warrants | ' | ' | ' |
Number of warrants issued | ' | 500,000 | ' |
Warrant exercise price | ' | 3.5 | ' |
Warrants exercisable at $4.00 | ' | ' | ' |
Warrants | ' | ' | ' |
Number of warrants issued | ' | 250,000 | ' |
Warrant exercise price | ' | 4 | ' |
Warrants exercisable at $5.00 | ' | ' | ' |
Warrants | ' | ' | ' |
Number of warrants issued | ' | 250,000 | ' |
Warrant exercise price | ' | 5 | ' |
Equity_Details_3
Equity (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accumulated Other Comprehensive Loss | ' | ' |
Accumulated other comprehensive loss | $25,237,253 | $39,561,700 |
Net unrealized losses on derivatives designated as cash flow hedges | 26,300,000 | 40,000,000 |
Unrealized gain related to available-for-sale securities | 1,100,000 | 400,000 |
Interest expense | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' |
Net realized losses on derivatives designated as cash flow hedges | -14,131,000 | -16,565,000 |
Other income | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' |
Net realized gain on sale of available-for-sale investments | $100,000 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17,112,078 | $16,492,062 | ($37,311,821) | ' |
(Loss) income from discontinued operations | -172,644 | -79,716 | -90,191 | -101,572 | 368,100 | -87,855 | 1,102,794 | 3,625,787 | ' | -444,123 | 5,008,826 | -2,999,892 | ' |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders | 3,367,171 | 3,664,679 | 2,995,866 | 6,640,239 | -267,239 | 2,060,329 | 15,546,018 | 4,161,780 | ' | 16,667,955 | 21,500,888 | -40,311,713 | ' |
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,399,872 | 26,956,938 | 24,968,894 | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends, per common share | $0.07 | $0.08 | $0.07 | $0.20 | ($0.02) | $0.07 | $0.58 | $0.02 | ' | $0.40 | $0.61 | ($1.49) | ' |
Income (loss) from discontinued operations per common share (in dollars per share) | ' | ' | ' | ' | $0.01 | ' | $0.04 | $0.15 | ' | ($0.01) | $0.19 | ($0.12) | ' |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.20 | ($0.01) | $0.07 | $0.62 | $0.17 | ' | $0.39 | $0.80 | ($1.61) | ' |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,112,078 | 16,492,062 | -37,311,821 | ' |
(Loss) income from discontinued operations | -172,644 | -79,716 | -90,191 | -101,572 | 368,100 | -87,855 | 1,102,794 | 3,625,787 | ' | -444,123 | 5,008,826 | -2,999,892 | ' |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders | $3,367,171 | $3,664,679 | $2,995,866 | $6,640,239 | ($267,239) | $2,060,329 | $15,546,018 | $4,161,780 | ' | $16,667,955 | $21,500,888 | ($40,311,713) | ' |
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,399,872 | 26,956,938 | 24,968,894 | ' |
Dilutive effect of warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 435,272 | 254,349 | ' | ' |
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,835,144 | 27,211,287 | 24,968,894 | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends, per common share | $0.07 | $0.08 | $0.07 | $0.19 | ($0.02) | $0.07 | $0.58 | $0.02 | ' | $0.40 | $0.61 | ($1.49) | ' |
Income (loss) from discontinued operations per common share (in dollars per share) | ' | ' | ' | ' | $0.01 | ' | $0.04 | $0.15 | ' | ($0.01) | $0.18 | ($0.12) | ' |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.19 | ($0.01) | $0.07 | $0.62 | $0.17 | ' | $0.39 | $0.79 | ($1.61) | ' |
Number of warrants issued | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | 1,000,000 |
Exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | ' | ' | $4 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 7 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2010 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2011 | Mar. 31, 2011 | Oct. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Nov. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 |
Mezzanine loan | Mezzanine loan | Preferred equity investments | Preferred equity investments | Bridge Loans | Bridge Loans | Minimum | Maximum | ACM | ACM | ACM | ACM | ACM | ACM | Maturity date of October 2018 | Maturity date of October 2018 | Maturity date of May 2015 | Maturity date of May 2015 | Maturity date of May 2015 | Maturity date of May 2015 | Maturity date of May 2016 | Maturity date of May 2016 | Maturity date of May 2016 | Maturity date of May 2016 | Maturity date of March 2014 | Maturity date of March 2014 | Maturity date of February 2013 | Maturity date of April 2013 | Maturity date of June 2012 | Maturity date of June 2012 | Maturity date of June 2012 | Maturity date of June 2012 | Maturity date of June 2012 | Maturity date of June 2012 | Maturity date of May 2014 | Maturity date of May 2014 | Maturity date of May 2014 | Maturity date of November 2014 | Maturity date of November 2014 | Maturity date of November 2014 | Maturity date of November 2014 | Maturity date of January 2015 | Maturity date of January 2015 | Maturity date of March 2015 | Maturity date of March 2015 | Affiliated entity of Mr. Ivan Kaufman | Affiliated entity of Mr. Ivan Kaufman | Affiliated entity of Mr. Ivan Kaufman | Affiliated entity of Mr. Ivan Kaufman | Affiliated entity of Mr. Ivan Kaufman | Kaufman Entities | Kaufman Entities | Kaufman Entities | Kaufman Entities | Kaufman Entities | Kaufman Entities | Kaufman Entities | Mr. Ivan Kaufman | Lexford | Lexford | Lexford | Lexford | Lexford | Lexford | Lexford | Lexford | Lexford | William C. Green | William C. Green | |||||
item | item | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | ACM | Mr. Fred Weber | Mr. Fred Weber | ACM | Maturity date of May 2014 | ACM | Maturity date of March 2015 | Maturity date of March 2015 | Maturity date of March 2015 | Maturity date of April 2015 | Maturity date of April 2015 | Maturity date of April 2015 | Maturity date of March 2015 | Preferred equity investments | Preferred equity investments | Preferred equity investments | Preferred equity investments | Preferred equity investments | Preferred equity investments | Original preferred equity investment | New preferred equity investment | Maturity date of January 2015 | Maturity date of January 2015 | |||||||||||||||||||
Mezzanine loan | Mezzanine loan | Minimum | item | Minimum | Maximum | Preferred equity investments | Bridge Loans | Bridge Loans | Bridge Loans | Bridge Loans | Bridge Loans | ACM | ACM | ACM | ACM | Bridge Loans | Bridge Loans | Bridge Loans | ACM | Mr. Fred Weber | ACM | ACM | |||||||||||||||||||||||||||||||||||||||||||||||||||
item | Bridge Loans | Bridge Loans | Bridge Loans | Mr. Fred Weber | Mr. Fred Weber | Mr. Fred Weber | Bridge Loans | Bridge Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Fred Weber | Mr. Fred Weber | Mr. Fred Weber | item | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
item | First year | Thereafter | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related party transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due from related party | $98,058 | $98,058 | $24,094 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to related party | 2,794,087 | 2,794,087 | 3,084,627 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of mezzanine loan purchased from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal, financial and accounting fees | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan restructured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of bridge loans originated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional investment made by the company along with a consortium of independent outside investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,500,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' |
Additional preferred equity investment outstanding | 1,660,195,301 | 1,660,195,301 | 1,501,056,647 | ' | 118,550,172 | 112,843,639 | 121,523,673 | 100,823,672 | 1,171,783,914 | 1,006,726,838 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' |
Interest held in the additional investment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | 500,000 | ' | ' | ' | ' |
Fixed rate of interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.36% | 12.00% | ' | ' |
Original variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' |
Original basis spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Modified variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' |
Modified basis spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.65% | ' | ' | ' |
Equity investment made | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,000 | ' | ' | ' | ' | ' | ' | ' |
Equity investment, balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Contract period with the new entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees as a percentage of gross revenues of the underlying properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.90% | ' | 23.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate outstanding balance of related party debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan to third party borrower, unpaid principal balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties purchased by the related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan amount purchased by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan amount retained by related party | 52,500,000 | 52,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loan that was repaid by third party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | 'one-month LIBOR | 'one-month LIBOR | ' | 'one-month LIBOR | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | 'one-month LIBOR | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | 0.24% | ' | 4.75% | ' | ' | ' | ' | 6.00% | 6.00% | ' | 8.00% | ' | ' | 0.50% | 1.50% | 6.00% | 6.00% | ' | ' | ' | 5.00% | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 6.00% | 5.50% | 7.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Libor cap (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options to extend loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended period of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income recorded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | 1,900,000 | 1,500,000 | ' | 100,000 | ' | 300,000 | 100,000 | ' | ' | 100,000 | 1,700,000 | 800,000 | ' | ' | ' | ' | ' | ' | 100,000 | 400,000 | ' | ' | ' | ' | 200,000 | ' | ' | 1,600,000 | 200,000 | ' | 500,000 | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | 1,100,000 | 1,300,000 | 200,000 | ' | ' | ' | ' | ' |
Period within which the entity must sell the loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of mortgage loans secured by property purchased from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of mortgage loan secured by property purchased from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,400,000 | ' | 2,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average variable interest rate (as a percent) | ' | 5.26% | 4.77% | ' | 7.02% | 4.94% | 7.20% | 6.04% | 5.11% | 4.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of bridge loan purchased from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 53,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest of related party in the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.60% | ' |
Contribution by related party for acquiring non-controlling interest in a third party entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of non-controlling interest acquired on contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership of third party entity in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount received by related party on sale of investment in joint venture to a related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding membership interest of related party in another related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares held by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of voting power held by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest allowed under company charter before amendment (as a percent) | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest allowed under company charter (as a percent) | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face Amount | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Personal guaranty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400,000 |
Distributions_Details
Distributions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 12, 2014 | Nov. 06, 2013 | Jul. 31, 2013 | 2-May-13 | Feb. 12, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 03, 2014 | Oct. 25, 2013 | Jul. 31, 2013 | 2-May-13 | Feb. 28, 2013 | Dec. 31, 2013 | Feb. 03, 2014 | Oct. 25, 2013 | Jul. 31, 2013 | 31-May-13 | Dec. 31, 2013 | |
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | Preferred Stock | ||||
Dividend Classified as Ordinary Income | Dividend Classified as Ordinary Income | Dividend Classified as Ordinary Income | Dividend Classified as Ordinary Income | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 8.25% Series A cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | 7.75% Series B cumulative redeemable preferred stock | |||||||||||||
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend declared (in dollars per share) | ' | ' | ' | $0.13 | $0.13 | $0.13 | $0.12 | $0.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend declared on redeemable preferred stock (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.52 | $0.52 | $0.52 | $0.69 | ' | ' | $0.48 | $0.48 | $0.60 | ' | ' |
Preferred dividend accrued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | $200,000 |
Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent) | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.25% | ' | 7.75% | ' | ' | ' | ' | ' | 8.25% | 8.25% | ' | ' | ' | 7.75% | 7.75% |
Total Dividends Paid | ' | ' | ' | ' | ' | ' | ' | ' | 21,327,000 | 8,031,000 | ' | ' | 2,667,000 | ' | 1,370,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend Paid Per Share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.50 | $0.28 | $0.50 | $0.28 | $1.72 | $1.72 | $1.09 | $1.09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage rate used to calculate dividends payments on common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions declared and paid on preferred shares issued to third parties by its subsidiary REIT | $4,506,583 | $12,236 | $14,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum taxable income to be distributed in order not to be subject to corporate federal income taxes on retained income (as a percent) | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management_Agreement_Details
Management Agreement (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2007 | |
Management Fees: | ' | ' | ' | ' |
Total Management fee | $10,900,000 | $10,000,000 | $8,300,000 | ' |
Incentive fee installment recorded as prepaid management fee | 19,047,949 | 19,047,949 | ' | ' |
Deferred revenue recognized on transfer of control of 450 West 33rd Street property | 77,123,133 | 77,123,133 | ' | 77,100,000 |
ACM | ' | ' | ' | ' |
Management Agreement | ' | ' | ' | ' |
Incentive fee calculation percentage | 25.00% | ' | ' | ' |
Percentage of loan loss reserve recoveries used in calculation of incentive fee | 60.00% | ' | ' | ' |
Period during which the loan loss reserve recoveries are to be taken into consideration for calculation of incentive fee | '3 years | ' | ' | ' |
Annual interest rate used in computation of incentive fee (as a percent) | 9.50% | ' | ' | ' |
Term of U.S. Treasury Rate used in computation of incentive fee | '10 years | ' | ' | ' |
Basis spread added to the U.S. Treasury Rate for computation of incentive fee (as a percent) | 3.50% | ' | ' | ' |
Multiplier used in computation of incentive fee | 10 | ' | ' | ' |
Termination fee | 10,000,000 | ' | ' | ' |
Renewable period for management agreement | '1 year | ' | ' | ' |
Prior written notice period for termination | '6 months | ' | ' | ' |
Period after each fiscal quarter in which the incentive fee is payable | '60 days | ' | ' | ' |
Number of days during the end of fiscal quarter with respect to which incentive fee is being paid | '20 days | ' | ' | ' |
Management Fees: | ' | ' | ' | ' |
Base | 10,900,000 | 10,000,000 | 8,300,000 | ' |
Total Management fee | 10,900,000 | 10,000,000 | 8,300,000 | ' |
Base management fee expenses due to related party | 2,800,000 | 3,100,000 | ' | ' |
Incentive fee installment recorded as prepaid management fee | ' | ' | ' | $19,000,000 |
ACM | Minimum | ' | ' | ' | ' |
Management Agreement | ' | ' | ' | ' |
Percentage of services provided by asset management group per quarter over the level of activity anticipated based on which base management fee can be negotiated in good faith | 15.00% | ' | ' | ' |
Percentage of incentive fee paid by issuance of common stock shares | 25.00% | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes | ' | ' | ' | ' | ' | ' | ' |
Alternative minimum tax | ' | ' | ' | ' | ' | $400,000 | ' |
Income tax receivable for the expected refund of income taxes paid by a taxable REIT subsidiary | 1,400,000 | ' | ' | ' | ' | 1,400,000 | ' |
State taxes for the entity's taxable REIT subsidiaries | ' | ' | ' | ' | 0 | 200,000 | 0 |
Current tax (benefit) provision: | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | -1,025,508 | ' |
State | ' | ' | ' | ' | ' | 245,517 | ' |
Total current tax (benefit) provision | ' | ' | ' | ' | ' | -779,991 | ' |
Deferred tax (benefit) provision: | ' | ' | ' | ' | ' | ' | ' |
Federal-net of valuation allowance | ' | ' | ' | ' | ' | -13,695 | ' |
State-net of valuation allowance | ' | ' | ' | ' | ' | -7,872 | ' |
Total deferred tax (benefit) provision | ' | ' | ' | ' | ' | -21,567 | ' |
Total (benefit) provision | -275,000 | 275,000 | 600,000 | -1,401,558 | ' | -801,558 | ' |
Effective income tax rate as a percentage of pretax income or loss differed from the U.S. federal statutory rate | ' | ' | ' | ' | ' | ' | ' |
U.S. federal statutory rate (as a percent) | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
REIT non-taxable income (as a percent) | ' | ' | ' | ' | -35.70% | -41.00% | -41.90% |
State and local income taxes, net of federal tax benefit (as a percent) | ' | ' | ' | ' | -1.10% | -1.10% | -0.90% |
Change in valuation allowance (as a percent) | ' | ' | ' | ' | 1.80% | 9.80% | 7.80% |
Refund (as a percent) | ' | ' | ' | ' | ' | -6.50% | ' |
Effective income tax rate (as a percent) | ' | ' | ' | ' | ' | -3.80% | ' |
Deferred tax assets (liabilities): | ' | ' | ' | ' | ' | ' | ' |
Expenses not currently deductible | 1,705,929 | ' | ' | ' | 1,585,723 | 1,705,929 | ' |
Net operating and capital loss carryforwards | 3,180,736 | ' | ' | ' | 5,534,018 | 3,180,736 | ' |
Interest in equity affiliates-net | -1,034,317 | ' | ' | ' | -1,489,269 | -1,034,317 | ' |
Deferred tax assets | 3,852,348 | ' | ' | ' | 5,630,472 | 3,852,348 | ' |
Valuation allowance | -3,830,781 | ' | ' | ' | -5,608,905 | -3,830,781 | ' |
Net deferred tax asset | 21,567 | ' | ' | ' | 21,567 | 21,567 | ' |
Gross deferred tax assets | $4,800,000 | ' | ' | ' | $7,100,000 | $4,800,000 | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Lightstone Value Plus REIT L.P | Capital Loss Carryforward | REIT subsidiaries | REIT subsidiaries | REIT subsidiaries | ||
Capital Loss Carryforward | ||||||
Income Taxes | ' | ' | ' | ' | ' | ' |
Federal and state net operating and capital loss carryforwards | $182,000,000 | ' | ' | $13,000,000 | $17,500,000 | ' |
Federal and state capital loss carryover | ' | ' | 90,000,000 | ' | ' | 2,400,000 |
Federal and state capital loss carryover that will expire in 2017 | ' | ' | ' | ' | ' | 2,000,000 |
Federal and state capital loss carryover that will expire in 2019 | ' | ' | ' | ' | ' | 400,000 |
Amount recorded in capital gain from the redemption of preferred stock | $2,418,528 | $113,000,000 | ' | ' | ' | ' |
Summary_Quarterly_Consolidated2
Summary Quarterly Consolidated Financial Information - Unaudited (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary Quarterly Consolidated Financial Information - Unaudited | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income | $15,526,603 | $15,097,248 | $13,996,043 | $12,346,578 | $11,034,505 | $10,520,512 | $9,731,906 | $7,845,007 | $56,966,472 | $39,131,930 | $22,215,623 |
Total other revenue | 5,465,819 | 6,688,523 | 8,251,944 | 9,713,786 | 5,580,252 | 7,477,408 | 7,931,963 | 8,312,312 | 30,120,072 | 29,301,935 | 22,125,735 |
Total other expenses | 16,083,239 | 17,700,377 | 17,873,676 | 18,412,689 | 17,473,474 | 19,439,955 | 23,310,912 | 22,064,620 | 70,069,981 | 82,288,961 | 95,987,127 |
Income (loss) from continuing operations before gain on extinguishment of debt, (loss) income from equity affiliates and benefit from income taxes | 4,909,183 | 4,085,394 | 4,374,311 | 3,647,675 | -858,717 | -1,442,035 | -5,647,043 | -5,907,301 | 17,016,563 | -13,855,096 | -51,645,769 |
Gain on extinguishment of debt | ' | 1,167,772 | ' | 3,763,000 | ' | 4,144,688 | 20,968,214 | 5,346,121 | 4,930,772 | 30,459,023 | 10,878,218 |
Income (loss) from equity affiliates | 40,937 | -81,723 | -81,804 | -81,885 | 2,347 | -225,493 | -224,136 | -250,574 | -204,475 | -697,856 | 3,671,386 |
Income (loss) before benefit from income taxes | ' | ' | ' | ' | -856,370 | 2,477,160 | 15,097,035 | -811,754 | 21,742,860 | 15,906,071 | -37,096,165 |
Benefit from income taxes | ' | ' | ' | ' | 275,000 | -275,000 | -600,000 | 1,401,558 | ' | 801,558 | ' |
Income (loss) from continuing operations | 4,950,120 | 5,171,443 | 4,292,507 | 7,328,790 | -581,370 | 2,202,160 | 14,497,035 | 589,804 | 21,742,860 | 16,707,629 | -37,096,165 |
Gain on sale of real estate held-for-sale | ' | ' | ' | ' | 466,310 | ' | ' | 3,487,145 | ' | 3,953,455 | ' |
(Loss) income from operations of real estate held-for-sale | ' | ' | ' | ' | -98,210 | -87,855 | 1,102,794 | 138,642 | -444,123 | 1,055,371 | -1,549,892 |
(Loss) income from discontinued operations | -172,644 | -79,716 | -90,191 | -101,572 | 368,100 | -87,855 | 1,102,794 | 3,625,787 | -444,123 | 5,008,826 | -2,999,892 |
Net income (loss) | 4,777,476 | 5,091,727 | 4,202,316 | 7,227,218 | -213,270 | 2,114,305 | 15,599,829 | 4,215,591 | 21,298,737 | 21,716,455 | -40,096,057 |
Preferred stock dividends | 1,410,305 | 1,410,333 | 1,152,617 | 533,328 | ' | ' | ' | ' | 4,506,583 | ' | ' |
Net income attributable to noncontrolling interest | ' | 16,715 | 53,833 | 53,651 | 53,969 | 53,976 | 53,811 | 53,811 | 124,199 | 215,567 | 215,656 |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders | $3,367,171 | $3,664,679 | $2,995,866 | $6,640,239 | ($267,239) | $2,060,329 | $15,546,018 | $4,161,780 | $16,667,955 | $21,500,888 | ($40,311,713) |
Basic (loss) earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.20 | ($0.02) | $0.07 | $0.58 | $0.02 | $0.40 | $0.61 | ($1.49) |
(Loss) income from discontinued operations (in dollars per share) | ' | ' | ' | ' | $0.01 | ' | $0.04 | $0.15 | ($0.01) | $0.19 | ($0.12) |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.20 | ($0.01) | $0.07 | $0.62 | $0.17 | $0.39 | $0.80 | ($1.61) |
Diluted (loss) earnings per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations, net of noncontrolling interest and preferred stock dividends (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.19 | ($0.02) | $0.07 | $0.58 | $0.02 | $0.40 | $0.61 | ($1.49) |
(Loss) income from discontinued operations (in dollars per share) | ' | ' | ' | ' | $0.01 | ' | $0.04 | $0.15 | ($0.01) | $0.18 | ($0.12) |
Net income (loss) attributable to Arbor Realty Trust, Inc. common stockholders (in dollars per share) | $0.07 | $0.08 | $0.07 | $0.19 | ($0.01) | $0.07 | $0.62 | $0.17 | $0.39 | $0.79 | ($1.61) |
SCHEDULE_IV_LOANS_AND_OTHER_LE1
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 5.26% | 4.77% | ' | ' |
Prior Liens | $2,909,444,426 | ' | ' | ' |
Loans and investments, gross | 1,660,195,301 | 1,501,056,647 | ' | ' |
Loan Carrying Value | 1,523,699,653 | 1,325,667,053 | 1,302,440,660 | 1,414,225,388 |
Carrying Amount Subject to Delinquent Interest | 10,732,383 | ' | ' | ' |
Principal balance | 52,500,000 | ' | ' | ' |
Modified loans | 51,700,000 | ' | ' | ' |
Amount of loans extended | 189,500,000 | ' | ' | ' |
Federal income tax basis | 1,500,000,000 | ' | ' | ' |
Bridge Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 5.11% | 4.87% | ' | ' |
Prior Liens | 13,855,000 | ' | ' | ' |
Loans and investments, gross | 1,171,783,914 | 1,006,726,838 | ' | ' |
Loan Carrying Value | 1,116,297,532 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 10,284,537 | ' | ' | ' |
Bridge Loans | Loans in excess of 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Prior Liens | 13,855,000 | ' | ' | ' |
Loans and investments, gross | 951,853,382 | ' | ' | ' |
Loan Carrying Value | 901,919,978 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 10,284,537 | ' | ' | ' |
Mezzanine Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 7.02% | 4.94% | ' | ' |
Prior Liens | 635,861,528 | ' | ' | ' |
Loans and investments, gross | 118,550,172 | 112,843,639 | ' | ' |
Loan Carrying Value | 95,037,469 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 447,846 | ' | ' | ' |
Mezzanine Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Junior Participations Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 4.21% | 3.90% | ' | ' |
Prior Liens | 1,654,166,942 | ' | ' | ' |
Loans and investments, gross | 248,337,542 | 280,662,498 | ' | ' |
Loan Carrying Value | 191,050,989 | ' | ' | ' |
Junior Participations Loans | Loans in excess of 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Junior Participations Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Preferred Equity Loans | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 7.20% | 6.04% | ' | ' |
Prior Liens | 605,560,956 | ' | ' | ' |
Loans and investments, gross | 121,523,673 | 100,823,672 | ' | ' |
Loan Carrying Value | 121,313,663 | ' | ' | ' |
Preferred Equity Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Threshold for reporting loans (as a percent) | 3.00% | ' | ' | ' |
Multi-family | Bridge Loans | Loans in excess of 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Loans and investments, gross | 219,930,532 | ' | ' | ' |
Loan Carrying Value | 214,377,554 | ' | ' | ' |
Multi-family | Bridge Loans | Loans in excess of 3% | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 3.49% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.25% | ' | ' | ' |
Multi-family | Bridge Loans | Loans in excess of 3% | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 5.60% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.48% | ' | ' | ' |
Multi-family | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 10.00% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 15.00% | ' | ' | ' |
Prior Liens | 11,000,000 | ' | ' | ' |
Loans and investments, gross | 624,059,592 | ' | ' | ' |
Loan Carrying Value | 616,544,218 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 4,006,693 | ' | ' | ' |
Multi-family | Bridge Loans | Loans less than 3% | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 2.60% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.17% | ' | ' | ' |
Multi-family | Bridge Loans | Loans less than 3% | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 15.64% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 1.50% | ' | ' | ' |
Multi-family | Mezzanine Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 4.00% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 15.00% | ' | ' | ' |
Prior Liens | 493,840,977 | ' | ' | ' |
Loans and investments, gross | 89,966,018 | ' | ' | ' |
Loan Carrying Value | 75,832,439 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 447,846 | ' | ' | ' |
Multi-family | Mezzanine Loans | Loans less than 3% | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 3.51% | ' | ' | ' |
Multi-family | Mezzanine Loans | Loans less than 3% | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 12.00% | ' | ' | ' |
Multi-family | Junior Participations Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 1.25% | ' | ' | ' |
Prior Liens | 185,000,000 | ' | ' | ' |
Loans and investments, gross | 32,000,000 | ' | ' | ' |
Multi-family | Preferred Equity Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 9.85% | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 2.36% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 15.00% | ' | ' | ' |
Prior Liens | 557,207,083 | ' | ' | ' |
Loans and investments, gross | 102,573,673 | ' | ' | ' |
Loan Carrying Value | 102,389,316 | ' | ' | ' |
Office | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 4.00% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 6.30% | ' | ' | ' |
Loans and investments, gross | 156,715,698 | ' | ' | ' |
Loan Carrying Value | 152,482,970 | ' | ' | ' |
Carrying Amount Subject to Delinquent Interest | 6,277,844 | ' | ' | ' |
Office | Bridge Loans | Loans less than 3% | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 3.10% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.24% | ' | ' | ' |
Office | Bridge Loans | Loans less than 3% | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 8.00% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 4.25% | ' | ' | ' |
Office | Mezzanine Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 9.39% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 10.00% | ' | ' | ' |
Prior Liens | 142,020,551 | ' | ' | ' |
Loans and investments, gross | 18,779,285 | ' | ' | ' |
Loan Carrying Value | 18,735,412 | ' | ' | ' |
Office | Junior Participations Loans | Loans in excess of 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Prior Liens | 88,500,000 | ' | ' | ' |
Loans and investments, gross | 95,000,000 | ' | ' | ' |
Loan Carrying Value | 95,000,000 | ' | ' | ' |
Office | Junior Participations Loans | Loans in excess of 3% | Minimum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 2.00% | ' | ' | ' |
Office | Junior Participations Loans | Loans in excess of 3% | Maximum | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 6.71% | ' | ' | ' |
Office | Junior Participations Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 5.29% | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 4.00% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 10.07% | ' | ' | ' |
Prior Liens | 1,334,319,803 | ' | ' | ' |
Loans and investments, gross | 86,337,542 | ' | ' | ' |
Loan Carrying Value | 61,050,989 | ' | ' | ' |
Office | Preferred Equity Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 6.75% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.25% | ' | ' | ' |
Loans and investments, gross | 2,000,000 | ' | ' | ' |
Loan Carrying Value | 2,000,000 | ' | ' | ' |
Land | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 4.50% | ' | ' | ' |
Fixed interest rate, minimum (as a percent) | 7.00% | ' | ' | ' |
Fixed interest rate, maximum (as a percent) | 11.64% | ' | ' | ' |
Prior Liens | 2,855,000 | ' | ' | ' |
Loans and investments, gross | 107,418,594 | ' | ' | ' |
Loan Carrying Value | 69,233,293 | ' | ' | ' |
Land | Mezzanine Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Loans and investments, gross | 9,332,969 | ' | ' | ' |
Hotel | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 7.25% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.50% | ' | ' | ' |
Loans and investments, gross | 34,181,252 | ' | ' | ' |
Loan Carrying Value | 34,181,252 | ' | ' | ' |
Hotel | Junior Participations Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 1.79% | ' | ' | ' |
Prior Liens | 46,347,139 | ' | ' | ' |
Loans and investments, gross | 35,000,000 | ' | ' | ' |
Loan Carrying Value | 35,000,000 | ' | ' | ' |
Commercial | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 3.23% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.24% | ' | ' | ' |
Loans and investments, gross | 22,728,245 | ' | ' | ' |
Loan Carrying Value | 22,728,245 | ' | ' | ' |
Commercial | Mezzanine Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 4.23% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.24% | ' | ' | ' |
Loans and investments, gross | 471,900 | ' | ' | ' |
Loan Carrying Value | 469,618 | ' | ' | ' |
Commercial | Preferred Equity Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base spread (as a percent) | 12.00% | ' | ' | ' |
Prior Liens | 22,750,000 | ' | ' | ' |
Loans and investments, gross | 1,700,000 | ' | ' | ' |
Loan Carrying Value | 1,700,000 | ' | ' | ' |
Retail | Bridge Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Base rate | 'LIBOR | ' | ' | ' |
Base spread (as a percent) | 5.75% | ' | ' | ' |
LIBOR Floor rate (as a percent) | 0.29% | ' | ' | ' |
Loans and investments, gross | 6,750,000 | ' | ' | ' |
Loan Carrying Value | 6,750,000 | ' | ' | ' |
Condo | Preferred Equity Loans | Loans less than 3% | ' | ' | ' | ' |
Loans and Investments | ' | ' | ' | ' |
Fixed interest rate (as a percent) | 17.00% | ' | ' | ' |
Prior Liens | 25,603,873 | ' | ' | ' |
Loans and investments, gross | 15,250,000 | ' | ' | ' |
Loan Carrying Value | $15,224,347 | ' | ' | ' |
SCHEDULE_IV_LOANS_AND_OTHER_LE2
SCHEDULE IV - LOANS AND OTHER LENDING INVESTMENTS (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of the Company's loans and investments carrying amounts | ' | ' | ' |
Balance at beginning of year | $1,325,667,053 | $1,302,440,660 | $1,414,225,388 |
Additions during period: | ' | ' | ' |
New loan originations | 591,537,200 | 275,633,168 | 206,477,919 |
Funding of unfunded loan commitments | 322,926 | 7,271,166 | 3,660,638 |
Accretion of unearned revenue | 5,385,999 | 2,794,627 | 2,203,739 |
Loan charge-offs | 24,713,459 | 46,585,800 | 27,062,564 |
Recoveries of reserves | 2,215,443 | 917,966 | 6,124,954 |
Charge-off on loan converted to other assets | 19,000,000 | ' | ' |
Charge-off on loans converted to real estate owned | ' | ' | 31,710,929 |
Deductions during period: | ' | ' | ' |
Loan payoffs | -324,358,463 | -171,822,185 | -108,668,220 |
Proceeds and receivables from sale of loans | -4,424,097 | -17,945,000 | -31,450,000 |
Proceeds used against junior loan participations | ' | -34,000,000 | ' |
Loan paydowns | -54,261,753 | -13,889,148 | -55,307,130 |
Loss on sale and restructuring of loans | ' | ' | -4,710,000 |
Use of loan charge-offs | -24,713,459 | -46,585,800 | -27,062,564 |
Loans converted to real estate owned | ' | ' | -114,810,469 |
Loan converted to other assets | -25,000,000 | ' | ' |
Provision for loan losses | -6,500,000 | -23,828,224 | -44,810,000 |
Unearned revenue and costs | -5,884,655 | -1,905,977 | -2,207,088 |
Balance at end of year | $1,523,699,653 | $1,325,667,053 | $1,302,440,660 |