Arbor Realty Trust (ABR) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	ARBOR REALTY TRUST INC
Entity Central Index Key	1,253,986
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		50,962,516
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 130,063,658	$ 50,417,745
Restricted cash (includes $75,112,146 and $216,405,894 from consolidated VIEs, respectively)	76,252,399	218,100,529
Loans and investments, net (includes $718,010,449 and $968,600,472 from consolidated VIEs, respectively)	1,468,566,061	1,459,475,650
Available-for-sale securities, at fair value	823,050	2,499,709
Investments in equity affiliates	24,368,379	4,869,066
Real estate owned, net (includes $38,760,450 and $80,732,144 from consolidated VIEs, respectively)	71,888,049	84,925,641
Real estate held-for-sale, net	11,241,531	14,381,733
Due from related party (includes $30,794 and $0 from consolidated VIEs, respectively)	2,499,584	36,515
Other assets (includes $11,920,558 and $14,949,956 from consolidated VIEs, respectively)	47,343,262	45,716,002
Total assets	1,833,045,973	1,880,422,590
Liabilities and Equity:
Credit facilities and repurchase agreements	322,737,195	180,386,200
Collateralized loan obligations (includes $500,250,000 and $458,250,000 from consolidated VIEs, respectively)	500,250,000	458,250,000
Collateralized debt obligations (includes $79,262,601 and $331,395,126 from consolidated VIEs, respectively)	79,262,601	331,395,126
Senior unsecured notes	97,860,025	97,860,025
Junior subordinated notes to subsidiary trust issuing preferred securities	160,108,568	159,833,260
Notes payable	2,300,000	1,300,000
Mortgage note payable - real estate owned	27,155,000	21,865,136
Mortgage note payable - real estate held-for-sale		9,119,221
Due to related party	1,991,665	2,653,333
Due to borrowers (includes $960,164 and $0 from consolidated VIEs, respectively)	36,694,858	32,972,606
Other liabilities (includes $1,572,454 and $7,385,474 from consolidated VIEs, respectively)	48,463,621	49,332,212
Total liabilities	$ 1,276,823,533	$ 1,344,967,119
Commitments and contingencies
Equity:
Preferred stock; 8.25% Series A; 7.75% Series B; 8.50% Series C	$ 89,295,905	$ 89,295,905
Common stock, $0.01 par value: 500,000,000 shares authorized; 53,613,283 and 53,128,075 shares issued, respectively; 50,962,516 and 50,477,308 shares outstanding, respectively	536,132	531,280
Additional paid-in capital	632,303,190	629,880,774
Treasury stock, at cost - 2,650,767 shares	(17,100,916)	(17,100,916)
Accumulated deficit	(141,187,730)	(152,483,322)
Accumulated other comprehensive loss	(7,624,141)	(14,668,250)
Total equity	556,222,440	535,455,471
Total liabilities and equity	$ 1,833,045,973	$ 1,880,422,590

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Restricted cash	$ 76,252,399	$ 218,100,529
Loans and investments, net	1,468,566,061	1,459,475,650
Real estate owned, net	71,888,049	84,925,641
Due from related party	2,499,584	36,515
Other assets	47,343,262	45,716,002
Collateralized loan obligations	500,250,000	458,250,000
Collateralized debt obligations	79,262,601	331,395,126
Due to Borrowers.	36,694,858	32,972,606
Other liabilities	$ 48,463,621	$ 49,332,212
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
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)	53,613,283	53,128,075
Common stock, shares outstanding (in shares)	50,962,516	50,477,308
Treasury stock, shares (in shares)	2,650,767	2,650,767
8.25% Series A preferred stock
Preferred stock, dividend rate (as a percent)	8.25%	8.25%
Preferred stock, aggregate liquidation preference	$ 38,787,500	$ 38,787,500
Preferred stock, shares issued (in shares)	1,551,500	1,551,500
Preferred stock, shares outstanding (in shares)	1,551,500	1,551,500
7.75% Series B preferred stock
Preferred stock, dividend rate (as a percent)	7.75%	7.75%
Preferred stock, aggregate liquidation preference	$ 31,500,000	$ 31,500,000
Preferred stock, shares issued (in shares)	1,260,000	1,260,000
Preferred stock, shares outstanding (in shares)	1,260,000	1,260,000
8.50% Series C preferred stock
Preferred stock, dividend rate (as a percent)	8.50%	8.50%
Preferred stock, aggregate liquidation preference	$ 22,500,000	$ 22,500,000
Preferred stock, shares issued (in shares)	900,000	900,000
Preferred stock, shares outstanding (in shares)	900,000	900,000
Consolidated VIEs
Restricted cash	$ 75,112,146	$ 216,405,894
Loans and investments, net	718,010,449	968,600,472
Real estate owned, net	38,760,450	80,732,144
Due from related party	30,794	0
Other assets	11,920,558	14,949,956
Collateralized loan obligations	500,250,000	458,250,000
Collateralized debt obligations	79,262,601	331,395,126
Due to Borrowers.	960,164	0
Other liabilities	$ 1,572,454	$ 7,385,474

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$ 26,340,585	$ 25,492,429	$ 53,549,980	$ 50,404,284
Other interest income, net	7,884,344		7,884,344
Interest expense	11,592,762	11,222,597	25,520,129	21,813,975
Net interest income	22,632,167	14,269,832	35,914,195	28,590,309
Other revenue:
Property operating income	7,201,834	9,001,383	15,652,177	18,259,471
Other income, net	76,816	150,187	112,816	1,008,583
Total other revenue	7,278,650	9,151,570	15,764,993	19,268,054
Other expenses:
Employee compensation and benefits	4,966,138	3,552,548	9,256,344	6,938,497
Selling and administrative	2,907,804	3,194,845	5,805,614	5,177,064
Property operating expenses	5,967,644	7,423,080	12,352,732	14,420,203
Depreciation and amortization	1,447,642	2,158,353	2,886,319	3,970,036
Impairment loss on real estate owned				250,000
Provision for loan losses (net of recoveries)	1,093,544	(870,187)	2,076,224	(735,843)
Management fee - related party	2,675,000	2,500,000	5,350,000	4,950,000
Total other expenses	19,057,772	17,958,639	37,727,233	34,969,957
Income before gain on acceleration of deferred income, loss on termination of swaps, gain on sale of real estate, gain on sale of equity interest and income from equity affiliates	10,853,045	5,462,763	13,951,955	12,888,406
Gain on acceleration of deferred income			11,009,162
Loss on termination of swaps			(4,289,450)
Gain on sale of real estate			3,984,364
Gain on sale of equity interests		7,851,266		7,851,266
Income from equity affiliates	1,534,025	40,493	4,629,938	80,541
Net income	12,387,070	13,354,522	29,285,969	20,820,213
Preferred stock dividends	1,888,430	1,888,465	3,776,860	3,479,395
Net income attributable to common stockholders	$ 10,498,640	$ 11,466,057	$ 25,509,109	$ 17,340,818
Basic earnings per common share (in dollars per share)	$ 0.21	$ 0.23	$ 0.50	$ 0.35
Diluted earnings per common share (in dollars per share)	0.21	0.23	0.50	0.35
Dividends declared per common share (in dollars per share)	$ 0.15	$ 0.13	$ 0.28	$ 0.26
Weighted average number of shares of common stock outstanding:
Basic (in shares)	50,955,648	50,267,462	50,751,247	49,804,457
Diluted (in shares)	50,955,648	50,701,742	50,894,531	50,229,899

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 12,387,070	$ 13,354,522	$ 29,285,969	$ 20,820,213
Unrealized gain (loss) on securities available-for-sale, net	364,552	29,394	423,341	(29,395)
Reclassification of unrealized gain on securities available-for-sale realized into earnings				(431,476)
Unrealized loss on derivative financial instruments, net	(165,156)	(636,671)	(906,727)	(1,078,444)
Reclassification of net realized loss on derivatives designated as cash flow hedges into loss on termination of swaps			4,285,995
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings	1,510,573	3,114,164	3,241,500	6,555,041
Comprehensive income	14,097,039	15,861,409	36,330,078	25,835,939
Less: Preferred stock dividends	1,888,430	1,888,465	3,776,860	3,479,395
Comprehensive income attributable to common stockholders	$ 12,208,609	$ 13,972,944	$ 32,553,218	$ 22,356,544

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - 6 months ended Jun. 30, 2015 - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated DeficitPrivate REIT preferred stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Private REIT preferred stock	Total
Balance at Dec. 31, 2014	$ 89,295,905	$ 531,280	$ 629,880,774	$ (17,100,916)		$ (152,483,322)	$ (14,668,250)		$ 535,455,471
Balance (in shares) at Dec. 31, 2014	3,711,500	53,128,075		(2,650,767)
Increase (Decrease) in Stockholders' Equity
Stock-based compensation		$ 4,861	2,422,407						2,427,268
Stock-based compensation (in shares)		486,124
Forfeiture of unvested restricted stock		$ (9)	9
Forfeiture of unvested restricted stock (in shares)		(916)
Distributions - common stock						(14,206,565)			(14,206,565)
Distributions - preferred stock					$ (6,952)	(3,776,860)		$ (6,952)	(3,776,860)
Net income						29,285,969			29,285,969
Unrealized gain on securities available-for-sale							423,341		423,341
Unrealized loss on derivative financial instruments, net							(906,727)		(906,727)
Reclassification of net realized loss on derivatives designated as cash flow hedges into loss on termination of swaps							4,285,995		4,285,995
Reclassification of net realized loss on derivatives designated as cash flow hedges into earnings							3,241,500		3,241,500
Balance at Jun. 30, 2015	$ 89,295,905	$ 536,132	$ 632,303,190	$ (17,100,916)		$ (141,187,730)	$ (7,624,141)		$ 556,222,440
Balance (in shares) at Jun. 30, 2015	3,711,500	53,613,283		(2,650,767)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income	$ 29,285,969	$ 20,820,213
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,886,319	3,970,036
Stock-based compensation	2,427,268	1,395,834
Gain on acceleration of deferred income	(11,009,162)
Loss on termination of swaps	4,289,450
Gain on sale of real estate	(3,984,364)
Gain on sale of securities		(518,640)
Provision for loan losses (net of recoveries)	2,076,224	(735,843)
Impairment loss on real estate owned		250,000
Amortization and accretion of interest, fees and intangible assets, net	1,684,017	174,903
Change in fair value of non-qualifying swaps and linked transactions		(42,774)
Gain on sale of equity interests		(7,851,266)
Income from equity affiliates	(4,629,938)	(80,541)
Changes in operating assets and liabilities:
Other assets	(1,922,592)	(1,631,606)
Distributions of operations from equity affiliates	80,542	80,541
Other liabilities	907,146	(359,716)
Change in restricted cash	554,382	(599,081)
Due to/from related party	(3,124,737)	(1,387,472)
Net cash provided by operating activities	19,520,524	13,484,588
Investing activities:
Loans and investments funded, originated and purchased, net	(557,256,118)	(456,177,017)
Payoffs and paydowns of loans and investments	551,201,085	474,807,344
Due to borrowers and reserves		(36,239)
Deferred fees	2,482,316	3,527,198
Principal collection on securities, net	2,100,000	663,684
Investment in real estate, net	(1,393,615)	(2,208,067)
Contributions to equity affiliates	(14,949,918)
Proceeds from sale of real estate, net	18,482,352
Proceeds from sale of available-for-sale securities		33,904,172
Distributions from equity affiliates		7,943,465
Net cash provided by investing activities	666,102	62,424,540
Financing activities:
Proceeds from repurchase agreements, loan participations, credit facilities and notes payable	479,205,709	162,062,708
Paydowns and payoffs of repurchase agreements, loan participations and credit facilities	(335,854,714)	(298,985,189)
Proceeds from mortgage note payable - real estate owned	27,155,000
Paydowns and payoffs of mortgage notes payable - real estate owned	(30,984,357)	(212,367)
Proceeds from collateralized loan obligations	219,000,000	281,250,000
Proceeds from senior unsecured notes		58,637,625
Payoffs and paydowns of collateralized debt obligations	(240,971,174)	(205,956,327)
Payoffs and paydowns of collateralized loan obligations	(177,000,000)
Change in restricted cash	141,293,748	(101,234,072)
Payments on financial instruments underlying linked transactions		(59,613,649)
Receipts on financial instruments underlying linked transactions		66,027,912
Payments on swaps and margin calls to counterparties	(290,000)	(1,022,106)
Receipts on swaps and returns of margin calls from counterparties	2,200,000	5,433,010
Proceeds from issuance of common stock		6,800,000
Expenses paid on issuance of common stock		(221,143)
Proceeds from issuance of preferred stock		22,500,000
Expenses paid on issuance of preferred stock		(779,131)
Distributions paid on common stock	(14,206,565)	(12,905,440)
Distributions paid on preferred stock	(3,776,860)	(3,320,020)
Payment of deferred financing costs	(6,304,548)	(6,939,600)
Net cash provided by (used in) financing activities	59,459,287	(88,484,940)
Net increase (decrease) in cash and cash equivalents	79,645,913	(12,575,812)
Cash and cash equivalents at beginning of period	50,417,745	60,389,552
Cash and cash equivalents at end of period	130,063,658	47,813,740
Supplemental cash flow information:
Cash used to pay interest	22,715,060	20,351,898
Cash used for taxes	345,259	70,256
Supplemental schedule of non-cash investing and financing activities:
Investment transferred from real estate owned, net to real estate held-for-sale, net	11,241,531
Accrued and unpaid expenses on preferred stock offerings		79,619
Accrued and unpaid expenses on common stock offerings		64,857
Investment transferred from real estate held-for-sale, net to real estate owned, net		11,444,812
Mortgage note payable - real estate held-for-sale, net transferred to real estate owned, net		11,005,354
8.25% Series A preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	266,664	266,664
7.75% Series B preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	203,438	203,438
8.50% Series C preferred stock
Supplemental schedule of non-cash investing and financing activities:
Distributions accrued on preferred stock	159,375	159,375
Private REIT preferred stock
Financing activities:
Distributions paid on preferred stock	$ (6,952)	$ (7,151)

CONSOLIDATED STATEMENTS OF CAS8

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
8.25% Series A preferred stock
Preferred stock, dividend rate (as a percent)	8.25%	8.25%	8.25%
7.75% Series B preferred stock
Preferred stock, dividend rate (as a percent)	7.75%	7.75%	7.75%
8.50% Series C preferred stock
Preferred stock, dividend rate (as a percent)	8.50%	8.50%	8.50%

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2015
Description of Business
Description of Business	Note 1 —Description of Business Arbor Realty Trust, Inc. is a Maryland corporation that was formed in June 2003 to invest in a diversified portfolio of multifamily and commercial real estate related assets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgage loans, preferred and direct equity. We may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. We conduct substantially all of our operations through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), and ARLP’s wholly-owned subsidiaries. We are externally managed and advised by Arbor Commercial Mortgage, LLC (our “Manager”). We organize and conduct our operations to qualify as a real estate investment trust (“REIT”) for federal income tax purposes.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
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 unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our 2014 Annual Report, which was filed with the SEC. The accompanying unaudited consolidated financial statements include our financial statements, our wholly-owned subsidiaries, and partnerships or other joint ventures in which we own a voting interest of greater than 50 percent, and variable interest entities (“VIEs”) of which we are 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 us 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, we have separately disclosed parenthetically the assets and liabilities of our collateralized debt obligation (“CDO”) and collateralized loan obligation (“CLO”) subsidiaries on our consolidated balance sheets. Entities in which we have significant influence are accounted for primarily under the equity method. As a REIT, we are generally not subject to federal income tax on our REIT—taxable income that we distribute to our stockholders, provided that we distribute at least 90% of our REIT—taxable income and meet certain other requirements. As of June 30, 2015 and 2014, we were in compliance with all REIT requirements and, therefore, have not provided for income tax expense for the six months ended June 30, 2015 and 2014. Certain of our assets that produce non-qualifying income are owned by our taxable REIT subsidiaries, the income of which is subject to federal and state income taxes. During the six months ended June 30, 2015 and 2014, we did not record any provision for income taxes for these taxable REIT subsidiaries as we expect any income to be offset by available federal and state net operating loss carryforwards. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Significant Accounting Policies As of June 30, 2015, our significant accounting policies, which are detailed in our 2014 Annual Report, have not changed materially. Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) amended its guidance on the balance sheet presentation of debt issuance costs. The guidance is effective for the first quarter of 2016 and we do not expect it to have a material effect on our consolidated financial statements other than the balance sheet presentation of debt and other assets. In February 2015, the FASB amended its guidance on the consolidation analysis of variable interest entities. The guidance is effective for the first quarter of 2016 and we are currently evaluating the impact it may have on our consolidated financial statements. In January 2015, the FASB eliminated the concept of extraordinary items and thus the requirement to assess whether an event or transaction requires extraordinary classification on the financial statements. The guidance is effective for the first quarter of 2016. We early adopted this new guidance in the first quarter of 2015 and it did not have a material effect on our consolidated financial statements.

Loans and Investments

Loans and Investments	6 Months Ended
	Jun. 30, 2015
Loans and Investments
Loans and Investments	Note 3 — Loans and Investments The following table sets forth the composition of our loan and investment portfolio: June 30, 2015 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity Wtd. Avg. First Dollar LTV Ratio (2) Wtd. Avg. Last Dollar LTV Ratio (3) Bridge loans $ % % % % Mezzanine loans % % % % Junior participation loans % % % % Preferred equity investments % % % % % % % % Unearned revenue ) Allowance for loan losses ) Loans and investments, net $ December 31, 2014 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity Wtd. Avg. First Dollar LTV Ratio (2) Wtd. Avg. Last Dollar LTV Ratio (3) Bridge loans $ % % % % Mezzanine loans % % % % Junior participation loans % % % % Preferred equity investments % % % % % % % % Unearned revenue ) Allowance for loan losses ) Loans and investments, net $ (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balances of each loan in our 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 our 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 we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. During the first quarter of 2015, we acquired a $116.0 million defaulted first mortgage, at par. We financed this acquisition primarily with a new $87.0 million warehouse repurchase facility. In April 2015, the first mortgage paid off and as a result, we repaid the $87.0 million warehouse facility and recognized income totaling $6.7 million, net of fees and expenses. The $6.7 million of income is comprised of other interest income totaling $7.9 million, partially offset by $1.2 million of expenses related to this transaction that were recorded in employee compensation and benefits. Concentration of Credit Risk We operate in one portfolio segment, commercial mortgage loans and investments. Commercial mortgage loans and investments can potentially subject us to concentrations of credit risk. We are subject to concentration risk in that, at June 30, 2015, the unpaid principal balance (“UPB”) related to 17 loans with five different borrowers represented approximately 19% of total assets . At December 31, 2014, the UPB related to 31 loans with five different borrowers represented approximately 23% of total assets . We measure our relative loss position for our mezzanine loans, junior participation loans, and preferred equity investments by determining the point where we will be exposed to losses based on our position in the capital stack as compared to the fair value of the underlying collateral. We determine our 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 our 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 we will absorb a total loss of our position. Last dollar LTV is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss. We assign 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 our 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. Assets are subject to, at minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed. Generally speaking, given our typical loan and investment profile, a risk rating of three suggests that we expect 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 we anticipate that the loan will require a modification of some kind. A risk rating of five indicates we expect the loan to underperform over its term, and 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 at June 30, 2015 and December 31, 2014, we identified loans and investments that we consider higher-risk loans that had a carrying value, before loan loss reserves, of approximately $192.0 million and $189.4 million, respectively, and a weighted average last dollar LTV ratio of 95% and 94%, respectively. A summary of the loan portfolio’s weighted average internal risk ratings and LTV ratios by asset class is as follows: June 30, 2015 Asset Class Unpaid Principal Balance Percentage of Portfolio Wtd. Avg. Internal Risk Rating Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multi-family $ % % % Office % % % Land % % % Hotel % % % Other % % % Total $ % % % December 31, 2014 Asset Class Unpaid Principal Balance Percentage of Portfolio Wtd. Avg. Internal Risk Rating Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multi-family $ % % % Office % % % Land % % % Hotel % % % Other % % % Total $ % % % Geographic Concentration Risk As of June 30, 2015, 28%, 14%, 13% and 10% of the outstanding balance of our loan and investment portfolio had underlying properties in New York, Florida, Texas and California, respectively. As of December 31, 2014, 28%, 14% and 10% of the outstanding balance of our loan and investment portfolio had underlying properties in New York, Florida and Texas, respectively. Impaired Loans and Allowance for Loan Losses We perform an evaluation of the loan portfolio quarterly to assess the performance of our loans and whether a reserve for impairment should be recorded. We consider a loan impaired when, based upon current information and events, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. During the three and six months ended June 30, 2015, we recognized provision for loan losses totaling $1.1 million and $2.1 million, respectively. During these periods, we also recorded net recoveries of previously recorded loan losses totaling less than $0.1 million, resulting in a provision for loan losses, net of recoveries totaling $1.1 million and $2.1 million, respectively. During the three and six months ended June 30, 2014 we recognized a provision for loan losses totaling $4.0 million and $5.0 million, respectively. During these periods, we also recorded net recoveries of previously recorded loan losses totaling $4.8 million and $5.7 million, respectively, resulting in a provision for loan losses, net of recoveries totaling $(0.9) million and $(0.7) million, respectively. The provision for loan losses recorded in the three months ended June 30, 2015 was on one loan with a carrying value before reserves of $114.8 million, while the provision for the six months ended June 30, 2015 was comprised of three loans with an aggregate carrying value of $127.8 million. The provision for loan losses recorded in the three months ended June 30, 2014 was comprised of three loans with an aggregate carrying value of $153.7 million, while the provision for the six months ended June 30, 2014 was comprised of four loans with an aggregate carrying value of $158.6 million. A summary of the changes in the allowance for loan losses is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Allowance at beginning of the period $ $ $ $ Provision for loan losses Charge-offs — ) — ) Recoveries of reserves ) ) ) ) Allowance at end of the period $ $ $ $ A summary of charge-offs and recoveries by asset class is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Charge-offs: Multi-family $ — $ ) $ — $ ) Total $ — $ ) $ — $ ) Recoveries: Multi-family $ ) $ ) $ ) $ ) Total $ ) $ ) $ ) $ ) Net Recoveries (Charge-offs) $ $ $ $ ) Ratio of net recoveries (charge-offs) during the period to average loans and investments outstanding during the period % % % )% There were no loans for which the fair value of the collateral securing the loan was less than the carrying value of the loan for which we had not recorded a provision for loan loss as of June 30, 2015 and 2014. We have six loans with a carrying value totaling $114.8 million at June 30, 2015, which mature in September 2017, that are collateralized by a land development project. The loans do not carry a current pay rate of interest, but four of the loans with a carrying value totaling $97.5 million entitle us to a weighted average accrual rate of interest of 9.60%. We 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. We have recorded cumulative allowances for loan losses of $47.6 million related to these loans as of June 30, 2015. 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. A summary of our impaired loans by asset class is as follows: June 30, 2015 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Asset Class Unpaid Principal Balance Carrying Value (1) Allowance for Loan Losses Average Recorded Investment (2) Interest Income Recognized Average Recorded Investment (2) Interest Income Recognized Multi-family $ $ $ $ $ $ $ Office Land — — Hotel Total $ $ $ $ $ $ $ December 31, 2014 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Asset Class Unpaid Principal Balance Carrying Value (1) Allowance for Loan Losses Average Recorded Investment (2) Interest Income Recognized Average Recorded Investment (2) Interest Income Recognized Multi-family $ $ $ $ $ $ $ Office Land — — Hotel Total $ $ $ $ $ $ $ (1) Represents the UPB of impaired loans less unearned revenue and other holdbacks and adjustments by asset class and was comprised of 10 loans at both June 30, 2015 and December 31, 2014. (2) Represents an average of the beginning and ending UPB of each asset class. As of June 30, 2015, three loans with an aggregate net carrying value of $6.5 million, net of related loan loss reserves on two of the loans of $34.5 million, were classified as non-performing. 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. As of December 31, 2014, three loans with an aggregate net carrying value of $7.0 million, net of related loan loss reserves on the two loans of $34.0 million, were classified as non-performing. A summary of our non-performing loans by asset class is as follows: June 30, 2015 December 31, 2014 Asset Class Carrying Value Less Than 90 Days Past Due Greater Than 90 Days Past Due Carrying Value Less Than 90 Days Past Due Greater Than 90 Days Past Due Multi-family $ $ — $ $ $ $ Office — — Total $ $ — $ $ $ $ At June 30, 2015, we did not have any loans contractually past due 90 days or more that are still accruing interest. A summary of loan modifications, refinancings and/or extensions by asset class that we considered to be troubled debt restructurings were as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Asset Class Number of Loans Original Unpaid Principal Balance Original Rate of Interest Modified Unpaid Principal Balance Modified Weighted Average Rate of Interest Number of Loans Original Unpaid Principal Balance Original Weighted Average Rate of Interest Modified Unpaid Principal Balance Modified Weighted Average Rate of Interest Multifamily $ % $ % $ % $ % During the quarter and six months ended June 30, 2014, we had not refinanced, modified or extended any loans which we considered to be troubled debt restructurings. There were no loans in which we considered the modifications to be troubled debt restructurings that were subsequently considered non-performing as of June 30, 2015 and 2014 and no additional loans were considered to be impaired due to our troubled debt restructuring analysis for the three and six months ended June 30, 2015 and 2014. We had no unfunded commitments on the extended loans which were considered troubled debt restructurings as of June 30, 2015. Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve, based on contractual requirements, to cover debt service costs. As of June 30, 2015, we had total interest reserves of $17.7 million on 54 loans with an aggregate UPB of $756.4 million.

Securities

Securities	6 Months Ended
	Jun. 30, 2015
Securities
Securities	Note 4 — Securities The following is a summary of our securities classified as available-for-sale at June 30, 2015: Face Amortized Cumulative Unrealized Carrying Value / Estimated Value Cost Gain Fair Value Common equity securities — The following is a summary of our securities classified as available-for-sale at December 31, 2014: Face Amortized Cumulative Unrealized Carrying Value / Estimated Value Cost (Loss) / Gain Fair Value Commercial mortgage-backed security (CMBS) $ $ $ ) $ Common equity securities — Total available-for-sale securities $ $ $ $ In the second quarter of 2015, our CMBS investment, which had a carrying value of $2.0 million, paid off in full. In connection with this pay off, we received proceeds of $2.1 million and reversed a $0.1 million unrealized loss from accumulated other comprehensive loss on our consolidated balance sheet. Our CMBS investment had an underlying credit rating of CCC- based on the rating published by Standard & Poor’s at December 31, 2014. We own 2,939,465 shares of common stock of CV Holdings, Inc., formerly Realty Finance Corporation, a commercial real estate specialty finance company, which had a fair value of $0.8 million and $0.5 million at June 30, 2015 and December 31, 2014, respectively. Available-for-sale securities are carried at their estimated fair value with unrealized gains and losses reported in accumulated other comprehensive loss. We evaluate 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. Our evaluation is based on our 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. No other-than-temporary impairment was recorded on our available-for-sale securities for the three and six months ended June 30, 2015 and 2014. In the first quarter of 2014, we sold all of our residential mortgage backed securities (“RMBS”) investments, which had an aggregate carrying value of $33.4 million, for $33.9 million and recorded a net gain of $0.5 million to other income, net on our consolidated statements of income, which includes the reclassification of a net unrealized gain of $0.4 million from accumulated other comprehensive loss on our consolidated balance sheet . Included in these sales were two RMBS investments with deteriorated credit quality that had an aggregate carrying value of $25.8 million and that were sold for $25.9 million. The RMBS investments were financed with two repurchase agreements totaling $25.3 million which were repaid with the proceeds. See Note 7 — “Debt Obligations” for further details. The weighted average yield on our CMBS and RMBS investments based on their face values was 1.19% and 1.15%, including the amortization of premium and the accretion of discount, for the three months ended June 30, 2015 and 2014, respectively, and 1.04% and 2.05% for the six months ended June 30, 2015 and 2014, respectively.

Investments in Equity Affiliate

Investments in Equity Affiliates	6 Months Ended
	Jun. 30, 2015
Investments in Equity Affiliates
Investments in Equity Affiliates	Note 5 — Investments in Equity Affiliates The following is a summary of our investments in equity affiliates: Investment in Equity Affiliates at UPB of Loans to Equity Affiliates at Equity Affiliates June 30, 2015 December 31, 2014 June 30, 2015 Arbor Residential Investor LLC $ $ — $ — West Shore Café Lightstone Value Plus REIT L.P. — Issuers of Junior Subordinated Notes — JT Prime — East River Portfolio Lexford Portfolio Ritz-Carlton Club — — — Total $ $ $ We account for all investments in equity affiliates under the equity method. Arbor Residential Investor LLC (“ARI”) — In the first quarter of 2015, we invested $9.6 million for 50% of our Manager’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. Our Manager retained a promote of 25% over a 10% return on this investment. As a result of this transaction, we had an initial indirect interest of 22.5% in the mortgage banking business, which is subject to dilution upon attaining certain profit hurdles of the business. As a result of the business’s profitability to date, we currently own a 20% indirect interest. During the three and six months ended June 30, 2015, we recorded $1.5 million and $4.6 million, respectively, to income from equity affiliates in our consolidated statements of income related to this investment. In the first quarter of 2015, we invested $1.7 million through ARI for 100% of our Manager’s investment in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform, resulting in a non-controlling ownership interest of 50% in this investment. We also funded $1.9 million and $1.7 million of additional mortgage purchases during the first and second quarters of 2015, respectively, for a total investment of $5.3 million as of June 30, 2015. During the three and six months ended June 30, 2015, we recorded a loss of less than $0.1 million for both periods to income from equity affiliates in our consolidated statements of income related to this investment. 930 Flushing & 80 Evergreen — In May 2014, our interest in these properties was sold, and we received $7.9 million in cash. As a result, we recorded a gain on sale of equity interest in our consolidated statements of income of $7.9 million and reduced our investment by its carrying value of $0.1 million. In July 2014, our outstanding loans totaling $22.9 million to this joint venture were repaid in full.

Real Estate Owned and Held-For-

Real Estate Owned and Held-For-Sale	6 Months Ended
	Jun. 30, 2015
Real Estate Owned and Held-For-Sale
Real Estate Owned and Held-For-Sale	Note 6 — Real Estate Owned and Held-For-Sale Our real estate assets were comprised of three multifamily properties (the “Multifamily Portfolio”) and four hotel properties (the “Hotel Portfolio”) at June 30, 2015 and four multifamily properties and five hotel properties at December 31, 2014. As of June 30, 2015 and December 31, 2014, the Multifamily Portfolio had a mortgage note payable of $27.2 million and $31.0 million, respectively. See Note 7 — “Debt Obligations” for further details. Real Estate Owned June 30, 2015 December 31, 2014 Multifamily Portfolio Hotel Portfolio Total Multifamily Portfolio Hotel Portfolio Total Land $ $ $ $ $ $ Building and intangible assets Less: accumulated depreciation and amortization ) ) ) ) ) ) Real estate owned, net $ $ $ $ $ $ As of June 30, 2015 and December 31, 2014, our Multifamily Portfolio had a weighted average occupancy rate of approximately 91% and 90%, respectively. For the six months ended June 30, 2015 and 2014, our Hotel Portfolio had a weighted average occupancy rate of approximately 55% and 58%, respectively, a weighted average daily rate of approximately $96 and $91, respectively, and a weighted average revenue per available room of approximately $53 for both periods. The operation of the hotel properties are seasonal with the majority of revenues earned in the first two quarters of the calendar year. Our real estate assets had restricted cash balances totaling $1.1 million and $1.7 million as of June 30, 2015 and December 31, 2014, respectively, due to escrow requirements. Real Estate Held-For-Sale In the second quarter of 2015, a property in the Hotel Portfolio with a carrying value of $11.2 million was reclassified from real estate owned to real estate held-for-sale due to a proposed sale. This sale transaction is expected to close in late 2015. In the first quarter of 2015, we sold a property in our Multifamily Portfolio as well as a property in the Hotel Portfolio classified as held-for-sale for a total of $18.8 million and recognized a gain of $4.0 million. There were no sales of property in the six months ended June 30, 2014. The results of operations for properties classified as held-for-sale are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Property operating income $ $ $ $ Expenses: Property operating expense Depreciation Net income $ $ $ $

Debt Obligations

Debt Obligations	6 Months Ended
	Jun. 30, 2015
Debt Obligations
Debt Obligations	Note 7 — Debt Obligations We utilize various forms of short-term and long-term financing agreements to finance certain of our loans and investments. Borrowings underlying these arrangements are primarily secured by a significant amount of our loans and investments. Credit Facilities and Repurchase Agreements The following table outlines borrowings under our credit facilities and repurchase agreements: June 30, 2015 December 31, 2014 Debt Collateral Weighted Debt Collateral Weighted Carrying Carrying Average Carrying Carrying Average Value Value Note Rate Value Value Note Rate $150 million warehouse repurchase facility $ $ % $ — $ — — $100 million warehousing credit facility % % $75 million warehousing credit facility % % $75 million warehousing credit facility % % $25 million term credit facility % — — — $15 million term credit facility — % — % Total credit facilities and repurchase agreements $ $ % $ $ % At June 30, 2015 and December 31, 2014, the weighted average interest rate for our credit facilities and repurchase agreements was 2.61% and 2.84%, respectively. Including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, the weighted average interest rate was 2.87% and 3.06% at June 30, 2015 and December 31, 2014, respectively. There were no interest rate swaps on these facilities at June 30, 2015 and December 31, 2014. In January 2015, we entered into a $150.0 million warehouse repurchase facility with a financial institution to finance a significant portion of the unwind of our CDO I and CDO II vehicles. The facility bears interest at a rate of 212.5 basis points over LIBOR on senior mortgage loans, 350.0 basis points over LIBOR on junior mortgage loans, and matures in January 2017 with a one-year extension option. See “Collateralized Debt Obligations” below. In July 2015, we amended the facility to temporarily increase the committed amount to $175.0 million until December 31, 2015. We have a $100.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties that bore interest at a rate of 225 basis points over LIBOR and was to mature in April 2015. In April 2015, we extended the maturity to May 2015. In May 2015, we amended the facility decreasing the rate of interest to 215 basis points over LIBOR and extended the maturity to May 2017 with a one-year extension option subject to certain conditions. The facility has a maximum advance rate of 75% and also has a compensating balance requirement of $50.0 million to be maintained by us and our affiliates. We have a $75.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties that bore interest at a rate of 225 basis points over LIBOR and was to mature in June 2015. In June 2015, we amended the facility, extending the maturity to June 2016, decreasing the rate of interest to 212.5 basis points over LIBOR, and added a new $25.0 million sublimit to finance healthcare related loans. The healthcare related loans will have an interest rate ranging from 225 basis points to 250 basis points over LIBOR depending on the type of facility financed. The facility has a maximum advance rate of 75% of the applicable expected permanent loan amount. We have another $75.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties that bears interest at a rate of 200 basis points over LIBOR and was to mature in April 2015. In April 2015, the facility was increased from $60.0 million to its current $75.0 million and the maturity was extended to April 2016. The facility has a maximum advance rate of 70% or 75%, depending on the property type. In February 2015, we entered into a $25.0 million warehouse facility with a financial institution to finance first mortgage loans on multifamily properties. The facility bears interest at a rate of 200 basis points over LIBOR and matures in February 2016. We had a $15.0 million term facility that bears interest at a fixed rate of 7.5%, matures in August 2015 and is secured by a portion of the bonds originally issued by our CDO III entity that we repurchased. We repaid this facility in full in July 2015. In March 2015, we entered into an $87.0 million warehouse repurchase facility with a financial institution to finance the acquisition of a first mortgage note. The facility bore interest at a rate of 250 basis points over a LIBOR floor of .25% and was to mature in March 2016. The facility was fully repaid in April 2015. Our warehouse credit facilities generally allow for an original warehousing period of up to 24 months from the initial advance on an asset. In addition, our credit facilities and repurchase agreements contain several restrictions including full repayment of an advance if a loan becomes 60 days past due, is in default or is written down by us. Our credit facilities and repurchase agreements also contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types. See “Debt Covenants” below for details. Collateralized Loan Obligations (CLOs) The following table outlines borrowings and the corresponding collateral under our CLOs as of June 30, 2015: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal Value Cash (1) At-Risk (2) CLO III $ $ $ $ $ $ — CLO IV — Total CLOs $ $ $ $ $ $ — The following table outlines borrowings and the corresponding collateral under our CLOs as of December 31, 2014: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal Value Cash (1) At-Risk (2) CLO II $ $ $ $ $ $ — CLO III — Total CLOs $ $ $ $ $ $ — CLO II – Issued two investment grade tranches in January 2013 with a stated maturity date in February 2023. Interest was variable based on three-month LIBOR; the weighted average note rate was 2.56%. CLO III — Issued three investment grade tranches in April 2014 with a replacement period through October 2016 and a stated maturity date in May 2024. Interest is variable based on three-month LIBOR; the weighted average note rate was 2.62% and 2.60% at June 30, 2015 and December 31, 2014, respectively. CLO IV — Issued three investment grade tranches in February 2015 with a replacement period through September 2017 and a stated maturity date in March 2025. Interest is variable based on three-month LIBOR; the weighted average note rate was 2.47% at June 30, 2015. (1) Represents restricted cash held for principal repayments as well as for reinvestment 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. In March 2015, we completed the unwinding of CLO II, redeeming $177.0 million of our outstanding notes which were repaid primarily from the refinancing of the remaining assets within our new and existing financing facilities as well as with cash held by the CLO and expensed approximately $1.5 million of deferred fees in the first quarter of 2015 into interest expense on the consolidated statements of income. In February 2015, we completed our fourth collateralized securitization vehicle (“CLO IV”), issuing to third party investors three tranches of investment grade CLOs through two newly-formed wholly-owned subsidiaries totaling $219.0 million. At closing, the notes were secured by a portfolio of loan obligations with a face value of approximately $250.0 million, consisting primarily of bridge loans that were contributed from our existing loan portfolio. The financing has an approximate 2.5 year replacement period from closing 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 120 days from the closing date of the CLO. In April 2015, the $50.0 million of additional proceeds was fully utilized. The aggregate principal amounts of the three classes of notes are $165.8 million of Class A senior secured floating rate notes, $24.8 million of Class B secured floating rate notes and $28.5 million of Class C secured floating rate notes. We retained a residual interest in the portfolio with a notional amount of approximately $81.0 million. The notes have an initial weighted average interest rate of approximately 2.24% plus one-month LIBOR and interest payments on the notes are payable monthly. Including certain fees and costs, the initial weighted average note rate was 2.96%. At June 30, 2015 and December 31, 2014, the aggregate weighted average note rate for our CLOs was 2.55% and 2.59%, respectively. Including certain fees and costs, the weighted average note rate was 3.12% and 3.14% at June 30, 2015 and December 31, 2014, respectively. Collateralized Debt Obligations (CDOs) The following table outlines borrowings and the corresponding collateral under our CDO as of June 30, 2015: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal (1) Value (1) Cash (2) At-Risk (3) CDO III $ $ $ $ $ $ The following table outlines borrowings and the corresponding collateral under our CDOs as of December 31, 2014: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal (1) Value (1) Cash (2) At-Risk (3) CDO I $ $ $ $ $ $ CDO II CDO III Total CDOs $ $ $ $ $ $ CDO I — Issued four investment grade tranches in January 2005 with a stated maturity date in February 2040. Interest was variable based on three-month LIBOR; the weighted average note rate was 3.23% at December 31, 2014. CDO II — Issued nine investment grade tranches in January 2006 with stated maturity date in April 2038. Interest was variable based on three-month LIBOR; the weighted average note rate was 6.22% at December 31, 2014. CDO III — Issued ten investment grade tranches in December 2006 with a stated maturity date in January 2042. Interest is variable based on three-month LIBOR; the weighted average note rate was 1.42% and 0.98% at June 30, 2015 and December 31, 2014, respectively. (1) Amounts include loans to real estate assets consolidated by us that were reclassified to real estate owned and held-for-sale, net on the consolidated financial statements. (2) Represents restricted cash held for principal repayments in the CDOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. (3) 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 June 30, 2015 and December 31, 2014, the aggregate weighted average note rate for our CDOs , including the cost of interest rate swaps on assets financed in these facilities, was 1.42% and 3.13%, respectively. Excluding the effect of swaps, the weighted average note rate at June 30, 2015 and December 31, 2014 was 1.00% and 1.07%, respectively. Including certain fees and costs, the weighted average note rate was 1.93% and 3.55% at June 30, 2015 and December 31, 2014, respectively. In January 2015, we completed the unwinding of CDO I and CDO II, redeeming $167.9 million of our outstanding notes. The notes were repaid primarily from proceeds received from the refinancing of CDO I and II’s remaining assets within a new $150.0 million warehouse repurchase facility and our existing financing facilities, as well as with cash held by each CDO. As a result of this transaction, we generated approximately $30.0 million in cash equity and expensed $0.5 million of deferred fees in the first quarter of 2015. We also terminated the related basis and interest rate swaps and incurred a loss of $4.3 million in the first quarter of 2015. See Note 8 — “Derivative Financial Instruments” for additional details. In 2010, we re-issued our own CDO bonds we 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 our 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 our CDO bonds that were exchanged and $22.9 million represents the estimated interest due on the reissued bonds through their maturity. In the first quarter of 2015, we unwound our CDO I and CDO II vehicles and reduced the balance of estimated interest by $11.0 million, recording a gain on acceleration of deferred income in the consolidated statements of income, and $8.2 million remains at June 30, 2015. As CDO III is past its reinvestment period, 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. CDO III had a $100.0 million revolving note class that provided a revolving note facility, which was paid off in the first quarter of 2015. In July 2015, we completed the unwind of CDO III, redeeming $71.1 million of outstanding notes. The notes were redeemed and repaid primarily from proceeds received from the refinancing of CDO III’s remaining assets within one of our existing financing facilities, as well as cash held by CDO III. As a result of this transaction, we expect to recognize an $8.2 million gain on the acceleration of deferred income and incur $0.5 million of other costs related to this vehicle in the third quarter of 2015. See Note 8 — “Derivative Financial Instruments” for additional information. We account for our CLO and CDO transactions on our consolidated balance sheet as financing facilities. Our CLOs and CDOs are VIEs for which we are the primary beneficiary and are consolidated in our financial statements accordingly. The investment grade tranches are treated as secured financings, and are non-recourse to us. Senior Unsecured Notes During 2014, we issued $90.0 million aggregate principal amount of 7.375% senior unsecured notes due in 2021 in an underwritten public offering for net proceeds of $85.4 million after deducting the issuance and underwriting discounts and offering expenses. In connection with this offering, the underwriters exercised a portion of their overallotment option for a $7.8 million aggregate principal amount providing additional net proceeds of $7.4 million. The notes can be redeemed by us after May 15, 2017. The interest is paid quarterly in February, May, August, and November starting in August 2014. Including certain fees and costs, the weighted average note rate was 8.11% and 8.06% at June 30, 2015 and December 31, 2014, respectively. We used the net proceeds to make investments, to repurchase or pay liabilities and for general corporate purposes. Junior Subordinated Notes The carrying value of borrowings under our junior subordinated notes was $160.1 million and $159.8 million at June 30, 2015 and December 31, 2014, respectively, which is net of a deferred amount of $15.7 million and $16.0 million, respectively, that is being amortized into interest expense over the life of the notes. These notes have maturities ranging from March 2034 through April 2037, pay interest quarterly at a fixed or floating rate of interest based on three-month LIBOR and were not redeemable for the first two years. The current weighted average note rate was 3.05% and 3.01% at June 30, 2015 and December 31, 2014. Including certain fees and costs, the weighted average note rate was 3.21% and 3.18% at June 30, 2015 and December 31, 2014, respectively. The entities that issued the junior subordinated notes have been deemed VIEs. See Note 9 — “Variable Interest Entities” for further details. Notes Payable The following table outlines borrowings under our notes payable: June 30, 2015 December 31, 2014 Debt Collateral Debt Collateral Carrying Carrying Carrying Carrying Value Value Value Value Junior loan participation, secured by our 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 our interest in a first mortgage loan with a principal balance of $28.8 million, expiration January 2016, interest is based on a portion of the interest received from the loan which has a fixed rate of 15.0% — — Total notes payable $ $ $ $ At June 30, 2015 and December 31, 2014, the weighted average note rate for our notes payable was 6.61%. There were no interest rate swaps on the notes payable at June 30, 2015 and December 31, 2014. Our obligation to pay interest on the junior loan participations is based on the performance of the related loan. Interest expense is based on the portion of the interest received from the loan that is paid to the junior participant. Mortgage Note Payable — Real Estate Owned and Held-For-Sale In the first quarter of 2015, we made required paydowns of $10.3 million and repaid the Multifamily Portfolio mortgage of $20.7 million, replacing it with two new notes payable totaling $27.2 million. At June 30, 2015, the new notes payable consist of a $24.7 million secured loan that bears interest at a fixed rate of 3.00% and matures in December 2017, as well as a $2.5 million, unsecured loan that bears interest at a variable rate of one-month LIBOR plus 2.75% and matures in December 2016. At December 31, 2014, the prior mortgage had an outstanding balance of $31.0 million, bore interest at a variable rate of one-month LIBOR plus 1.23% and was to mature in June 2015. Debt Covenants Our debt facilities contain various financial covenants and restrictions, including a minimum liquidity requirement of $20.0 million, minimum net worth requirement of either $150.0 million or $300.0 million depending on the debt facility and a maximum total liabilities less subordinated debt requirement of $2.0 billion, as well as certain other debt service coverage ratios and debt to equity ratios. We were in compliance with all financial covenants and restrictions at June 30, 2015. Our CDO and CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in our CDO or any of our 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 we would not receive any residual payments until that CDO or CLO regained compliance with such tests. Our CDO and CLOs were in compliance with all such covenants as of June 30, 2015, as well as on the most recent determination dates in July 2015. In the event of a breach of the CDO or CLO covenants that could not be cured in the near-term, we would be required to fund our 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 CLO not in breach of a covenant test, (iii) income from real property and loan assets, (iv) sale of assets, or (v) or accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CDO or CLOs. However, we may not have sufficient liquidity available to do so at such time. The chart below is a summary of our CLO compliance tests as of the most recent determination dates in July 2015: Cash Flow Triggers CLO III CLO IV Overcollateralization (1) Current % % Limit % % Pass / Fail Pass Pass Interest Coverage (2) Current % % Limit % % Pass / Fail Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the 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 CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us. The chart below is a summary of our CDO and CLO overcollateralization ratios as of the following determination dates: Determination Date CDO III CLO III CLO IV July 2015 (1) — % % April 2015 % % % January 2015 % % — October 2014 % % — July 2014 % % — (1) CDO III was redeemed in July 2015. The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CDO 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.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Derivative Financial Instruments	Note 8 — Derivative Financial Instruments The following is a summary of the derivative financial instruments held by us (dollars in thousands): Notional Value Fair Value Designation\ Cash Flow Derivative Count June 30, 2015 Count December 31, 2014 Expiration Date Balance Sheet Location June 30, 2015 December 31, 2014 Non-Qualifying Basis Swaps — $ — 1 $ — Other Assets $ — $ Non-Qualifying LIBOR Cap — $ — 1 $ — Other Assets $ — $ — Qualifying LIBOR Cap 1 $ — $ — 2017 Other Assets $ $ — Qualifying Interest Rate Swaps 6 $ 12 $ 2016 - 2017 Other Liabilities $ ) $ ) The non-qualifying basis swaps hedges were used to manage our exposure to interest rate movements and other identified risks but do not meet hedge accounting requirements. We are exposed to changes in the fair value of certain of our fixed rate obligations due to changes in benchmark interest rates and use interest rate swaps to manage our 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 us making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. D uring the six months ended June 30, 2015, CDO II was unwound and the related basis swap with a notional value of $3.0 million and a fair value of less than $0.1 million was terminated and recorded as a loss in the first quarter of 2015. See Note 7 — “Debt Obligations — Collateralized Debt Obligations” for further details. Also d uring the six months ended June 30, 2015, a non- qualifying LIBOR cap hedge with a notional value of $71.7 million matured. We entered into this LIBOR cap hedge in the first quarter of 2014 due to a loan agreement requiring a LIBOR cap of 6%. During the six months ended June 30, 2014, the notional value on a basis swap decreased by approximately $8.6 million pursuant to the contractual terms of the respective swap agreement. For the three and six months ended June 30, 2015 and 2014, the change in fair value of the non-qualifying basis swaps and LIBOR caps was less than $(0.1) million and was recorded in interest expense on the consolidated statements of income . The changes in the fair value of qualifying interest rate swap cash flow hedges are recorded in accumulated other comprehensive loss o n 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 our variable-rate debt. During the six months ended June 30, 2015, CDO I and CDO II were unwound and the related interest rate swaps with an aggregate notional value of $134.6 million and an aggregate fair value of $(4.3) million were terminated and recorded as a loss in the first quarter of 2015. See Note 7 — “Debt Obligations — Collateralized Debt Obligations” for further details. Also d uring the six months ended June 30, 2015, we entered into a qualifying LIBOR cap hedge due to a CLO agreement requiring a LIBOR cap of 2% . During the six months ended June 30, 2014, two interest swaps matured with a combined notional value of approximately $32.0 million. As of June 30, 2015, we expect to reclassify approximately $(5.6) 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. 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. Gains and losses on terminated swaps are being deferred and recognized in earnings over the original life of the hedged item. As of June 30, 2015 and December 31, 2014, we had a net deferred loss of $0.9 million and $1.1 million, respectively, in accumulated other comprehensive loss related to these terminated swap agreements. We recorded $0.2 million as additional interest expense related to the amortization of the loss for both the three months ended June 30, 2015 and 2014, and less than $0.1 million and $0.1 million as a reduction to interest expense related to the accretion of the net gains for the three months ended June 30, 2015 and 2014, respectively. We recorded $0.3 million as additional interest expense related to the amortization of the loss for both the six months ended June 30, 2015 and 2014, and $0.1 million as a reduction to interest expense related to the accretion of the net gains for both the six months ended June 30, 2015 and 2014. We expect to record approximately $0.5 million of net deferred loss to interest expense over the next twelve months. During the six months ended June 30, 2014, we sold eight remaining RMBS investments, which were accounted for as linked transactions, with an aggregate carrying value of $65.7 million for approximately $65.8 million and recorded a net gain of $0.1 million related to the settlement of these linked transactions. The eight RMBS investments were financed with repurchase agreements totaling $55.4 million which were repaid with the proceeds. For the six months ended June 30, 2014, $0.3 million of net interest income and a less than $0.1 million decrease in fair value was recorded to other income in the consolidated statements of income . In July 2015, CDO III was unwound and the related interest rate swap with a notional value of $7.9 million and a fair value of $0.4 million was terminated and recorded as a loss in the third quarter of 2015. See Note 7 — “Debt Obligations — Collateralized Debt Obligations” for further details. The following table presents the effect of our derivative financial instruments on the Statements of Income (dollars in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) For the Six Months Ended Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Expense (Effective Portion) For the Six Months Ended Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Loss on Termination of Swaps (Ineffective Portion) For the Six Months Ended Amount of Loss Recognized in Loss on Termination of Swaps (Ineffective Portion) For the Six Months Ended Amount of Loss Recognized in Other Income For the Six Months Ended Designation\ Cash Flow Derivative June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Non- Qualifying Basis Swaps $ — $ — $ — $ — $ — $ — $ ) $ — $ — $ — Qualifying Interest Rate Swaps/Cap $ $ $ ) $ ) $ ) $ — $ — $ — $ — $ — Non- Qualifying Forward Contracts $ — $ — $ — $ — $ — $ — $ — $ — $ — $ ) The cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as qualifying hedges as of June 30, 2015 and December 31, 2014 of $(8.4) million and $(15.0) million, respectively, is a combination of the fair value of qualifying cash flow hedges of $(7.5) million and $(13.9) million, respectively, deferred losses on terminated interest rate swaps of $(1.0) million and $(1.2) million, respectively, partially offset by deferred net gains on termination of interest rate swaps of $0.1 million for both periods. We have agreements with certain of our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then we could also be declared in default on our derivative obligations. As of June 30, 2015 and December 31, 2014, 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 $(7.2) million and $(9.2) million, respectively. As of June 30, 2015 and December 31, 2014, we had minimum collateral posting thresholds with certain of our derivative counterparties and had posted collateral of $7.7 million and $9.6 million, respectively, which is recorded in other assets in our consolidated balance sheets.

Variable Interest Entities

Variable Interest Entities	6 Months Ended
	Jun. 30, 2015
Variable Interest Entities
Variable Interest Entities	Note 9 — Variable Interest Entities We have evaluated our loans and investments, mortgage related securities, investments in equity affiliates, senior unsecured notes, junior subordinated notes, CDO and CLOs, in order to determine if they qualify as VIEs or as variable interests in VIEs. This evaluation resulted in determining that our bridge loans, junior participation loans, mezzanine loans, preferred equity investments, investments in equity affiliates, junior subordinated notes, CDO, CLOs and investments in mortgage related securities are potential VIEs. Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments. Consolidated VIEs We consolidate our CDO and CLO subsidiaries, which qualify as VIEs, of which we are 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. We, or one of our affiliates, is named collateral manager, servicer, and special servicer for all CDO and CLO collateral assets which we believe gives us the power to direct the most significant economic activities of the entity. We also have exposure to CDO and CLO losses to the extent of our equity interests and also have 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 sheets reflect both the assets held and debt issued by the CDOs and CLOs to third parties. Our operating results and cash flows include the gross amounts related to CDO and CLO assets and liabilities as opposed to our 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 us 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 our consolidated balance sheets. See Note 7 — “Debt Obligations” for further details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the consolidated CDOs and CLOs . Unconsolidated VIEs We determined that we are not the primary beneficiary of 24 VIEs in which we have a variable interest as of June 30, 2015 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity’s economic performance. VIEs, of which we are not the primary beneficiary, have an aggregate carrying amount of $420.7 million and exposure to real estate debt of approximately $1.9 billion at June 30, 20 15. The following is a summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, as of June 30, 2015: Type Carrying Amount (1) Maximum Exposure to Loss (2) Loans $ $ Loans and equity investments Junior subordinated notes (3) Total $ $ (1) Represents the carrying amount of loans and investments before reserves. At June 30, 2015, $189.2 million of loans to VIEs had corresponding loan loss reserves of approximately $113.2 million and $40.3 million of loans to VIEs were related to loans classified as non-performing. See Note 3 — “Loans and Investments” for further details. (2) Our maximum exposure to loss as of June 30, 2015 would not exceed the carrying amount of its investment. (3) 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 our investments were funded by the entities that issued the junior subordinated notes, it is not considered to be at risk.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2015
Fair Value.
Fair Value	Note 10 — 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 our financial instruments: June 30, 2015 December 31, 2014 Estimated Estimated Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans and investments, net $ $ $ $ Available-for-sale securities Derivative financial instruments Financial liabilities: Credit and repurchase facilities $ $ $ $ Collateralized loan obligations Collateralized debt obligations Senior unsecured notes Junior subordinated notes Notes payable Mortgage note payable - real estate owned and held-for-sale Derivative financial instruments 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 we evaluate our hierarchy disclosures each quarter. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Loans and investments, net: Fair values of loans and investments that are not impaired are estimated using Level 3 inputs based on 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 using Level 3 inputs by us that require 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. 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 value of a CMBS security was estimated by us using Level 3 inputs that required significant judgments, which included 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 and basis swap derivatives and LIBOR caps 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 sheets. We incorporate credit valuation adjustments in the fair values of our derivative financial instruments to reflect counterparty nonperformance risk. Credit facilities, repurchase agreements, 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 obligations: 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. Senior unsecured notes: Fair values are estimated at Level 1 based on current market quotes received from active markets. Junior subordinated notes: 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. We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs as of June 30, 2015: Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Available-for-sale securities $ $ $ $ — $ — Derivative financial instruments — — Financial liabilities: Derivative financial instruments $ $ $ — $ $ — 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 Securities Balance as of December 31, 2014 $ Adjustment to fair value: Change in fair value Payoff of CMBS investment ) Balance as of June 30, 2015 $ — We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair value of these financial assets was determined using the following inputs as of June 30, 2015: Net Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ $ $ — $ — $ (1) We had an allowance for loan losses of $117.6 million relating to 10 loans with an aggregate carrying value, before loan loss reserves, of approximately $224.4 million at June 30, 2015. 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. We consider a loan impaired when, based upon current information and events, it is probable that we will be unable to collect all amounts due for both principal and interest according to the contractual terms of the loan agreement. We perform evaluations of our 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 and discount rates, revenue growth 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. Quantitative information about Level 3 fair value measurements on a recurring and non-recurring basis: June 30, 2015 Valuation Significant Unobservable Range Fair Value Technique(s) Inputs (Weighted Average) Financial assets: Impaired loans (1): Multi-family $ Direct capitalization analysis and discounted cash flows Discount rate Capitalization rate Revenue growth rate 8.00% 6.50% to 9.75% (7.30)% 2.00% Office Discounted cash flows Discount rate Capitalization rate Revenue growth rate 10.00% to 11.25% (10.50)% 8.25% to 9.25% (9.01)% 2.50% to 3.00% (2.63)% Land Discounted cash flows Discount rate Capitalization rate Revenue growth rate 15.00% 7.25% 3.00% Hotel Discounted cash flows Discount rate Capitalization rate Revenue growth rate 9.25% 7.25% 3.00% (1) Includes all impaired loans regardless of the period in which a loan loss provision was recorded. We measure certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities was determined using the following input levels as of June 30, 2015: Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ $ $ — $ — $ Financial liabilities: Credit facilities and repurchase agreements $ $ $ — $ — $ Collateralized loan obligations — — Collateralized debt obligation — — Senior unsecured notes — — Junior subordinated notes — — Notes payable — — Mortgage note payable — real estate owned — —

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	Note 11 — Commitments and Contingencies Contractual Commitments Our debt obligations have approximate maturities of $122.7 million in 2015 (of which $79.3 million related to the unwind of CDO III in July), $221.7 million in 2016, $346.3 million in 2017, $228.3 million in 2018, $12.7 million in 2019 and $273.7 million thereafter. In accordance with certain loans and investments, we have outstanding unfunded commitments of $16.0 million as of June 30, 2015 that we are obligated to fund as the borrowers meet certain requirements. Of this total, we have $4.4 million in restricted cash which was available to fund all of the unfunded commitments for loans financed by our CDO and CLO vehicles. 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. Litigation We currently are neither subject to any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us 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 U.S. 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 were 73 defendants in the three lawsuits, including 55 corporate and partnership entities and 18 individuals. A subsidiary of ours and certain other entities that are affiliates of ours are included as defendants. The New York State Court action has been removed to the Bankruptcy Court. Our 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. Our 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 we have 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 ours, 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. We are 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 us, 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 our affiliates 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 approximately $139.0 million in the aggregate from director designees, portions of which are also sought from our affiliates as well as from unaffiliated defendants. We have moved to dismiss the referenced actions and intend to vigorously defend against the claims asserted therein. During a status conference held on March 18, 2014, the Court heard oral argument on the motion to dismiss and adjourned the case pending a ruling. We have not made a loss accrual for this litigation because we believe that it is not probable that a loss has been incurred and an amount cannot be reasonably estimated.

Equity

Equity	6 Months Ended
	Jun. 30, 2015
Equity
Equity	Note 12 — Equity Preferred Stock In February 2014, we completed an underwritten public offering of 900,000 shares of 8.50% Series C cumulative redeemable preferred stock with a liquidation preference of $25.00 per share, generating net proceeds of approximately $21.6 million after deducting the underwriting discount and other offering expenses. Common Stock In February 2014, we 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 we may issue and sell through JMP up to 7,500,000 shares of our common stock. Sales of the shares are made by means of ordinary brokers’ transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. During the first quarter of 2014, we sold 1,000,000 shares for net proceeds of $6.5 million. As of June 30, 2015, 6,500,000 shares are available for sale under this offering. We used the net proceeds from our preferred and common offerings to make investments, to repurchase or pay liabilities and for general corporate purposes. As of July 31, 2015, we have $330.4 million available under our $500.0 million shelf registration statement that was declared effective by the SEC in August 2013. Distributions The following table presents dividends declared (on a per share basis) for the six months ended June 30, 2015: Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C February 11, 2015 $ February 2, 2015 $ $ $ April 29, 2015 $ April 29, 2015 $ $ $ (1) The dividend declared on February 2, 2015 for the Series A, B and C preferred stock was for the period December 1, 2014 through February 28, 2015. The dividend declared on April 29, 2015 for the Series A, B and C preferred stock was for the period March 1, 2015 through May 31, 2015. Common Stock — On July 29, 2015, the Board of Directors declared a cash dividend of $0.15 per share of common stock. The dividend is payable on August 31, 2015 to common stockholders of record as of the close of business on August 15, 2015. Preferred Stock — On July 29, 2015, the Board of Directors declared a cash dividend of $0.515625 per share of 8.25% Series A preferred stock; a cash dividend of $0.484375 per share of 7.75% Series B preferred stock; and a cash dividend of $0.53125 per share of 8.50% Series C preferred stock. These amounts reflect dividends from June 1, 2015 through August 31, 2015 and are payable on August 31, 2015 to preferred stockholders of record on August 15, 2015. Deferred Compensation In May 2015, we issued 20,430 shares of fully vested common stock to certain independent members of the Board of Directors under the 2014 Omnibus Stock Incentive Plan (the “2014 Plan”) and recorded $0.1 million to selling and administrative expense in our consolidated statements of income. In March 2015, we issued 328,400 shares of restricted common stock under the 2014 Plan to certain employees of ours and our Manager, inclusive of 105,000 shares granted to our chief executive officer, Mr. Ivan Kaufman, with a total grant date fair value of $2.3 million and recorded $0.4 million to employee compensation and benefits and $0.4 million to selling and administrative expense in our consolidated statements of income. One third of the shares vested as of the date of grant, one third will vest in March 2016, and the remaining third will vest in March 2017. In March 2015, we also issued 63,000 shares of fully vested common stock to the independent members of the Board of Directors under the 2014 Plan and recorded $0.4 million to selling and administrative expense in our consolidated statements of income. During the first quarter of 2015, we issued 74,294 shares of restricted common stock to Mr. Kaufman under his 2015 annual incentive agreement with a grant date fair value of $0.5 million and recorded $0.1 million to employee compensation and benefits in our consolidated statements of income. O ne quarter of the shares vest as of the date of grant and one quarter will vest on each of the first, second and third anniversaries of the date of grant. Mr. Kaufman was also granted up to 445,765 performance-based restricted stock units that vest at the end of a four-year performance period based on the our achievement of certain total shareholder return objectives. The restricted stock units had a grant date fair value of $1.2 million and we recorded $0.1 million and $0.2 million to employee compensation and benefits in our consolidated statements of income for the three and six months ended June 30, 2015, respectively. As of June 30, 2015, unvested restricted stock consisted of 213,157 shares granted to our employees with a grant date fair value of $1.5 million and 154,169 shares granted to employees of our Manager with a grant date fair value of $1.1 million, which is subject to remeasurement each reporting period. Expense is recognized ratably over the vesting period in our consolidated statements of income in selling and administrative expense and employee compensation and benefits expense, respectively. During the three months ended June 30, 2015 and 2014, we recorded the ratable portion of the unvested restricted stock to employees as employee compensation and benefits for $0.3 million and $0.1 million, respectively, and for non-employees to selling and administrative expense for $0.2 million and $0.1 million, respectively. During the six months ended June 30, 2015 and 2014, we recorded the ratable portion of the unvested restricted stock to employees as employee compensation and benefits for $0.4 million and $0.1 million, respectively, and for non-employees to selling and administrative expense for $0.4 million and $0.2 million, respectively. During the second quarter of 2015, a total of 916 shares of unvested restricted stock with a grant date value of less than $0.1 million were forfeited. Vesting of restricted shares is dependent on a service requirement. Dividends paid on restricted shares are recorded as dividends on shares of our common stock whether or not they are vested. For accounting purposes, we measure 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 ours 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, we issued Wachovia 1,000,000 warrants at an average strike price of $4.00 and an expiration date in July 2015. On July 1, 2014, we acquired and canceled all of the warrants in return for the payment of $2.6 million, recorded to additional paid in capital, which reflects a 5% discount to the prior day closing price of our common stock of $6.95. Accumulated Other Comprehensive Loss At June 30, 2015, accumulated other comprehensive loss was $7.6 million and consisted of $7.5 million of net unrealized losses on derivatives designated as cash flow hedges, and $0.9 million of net deferred losses on terminated interest swaps, less an $0.8 million unrealized gain related to available-for-sale securities. At December 31, 2014, accumulated other comprehensive loss was $14.7 million and consisted of $13.9 million of net unrealized losses on derivatives designated as cash flow hedges, and $1.1 million of net deferred losses on terminated interest swaps, less a $0.3 million unrealized gain related to available-for-sale securities. Reclassifications out of accumulated other comprehensive loss is as follows: Six Months Ended June 30, 2015 2014 Statement of Income Caption Net realized losses on derivatives designated as cash flow hedges: Interest Rate Swaps $ ) $ ) Interest expense (1) Termination of Interest Rate Swaps $ ) $ — Loss on termination of swaps (1) Net realized gain on sale of available-for-sale investments: RMBS investment $ — $ Other income (2) (1) See Note 8 — “Derivative Financial Instruments” for additional details . (2) See Note 4 — “Securities” for additional details .

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings Per Share	Note 13 — Earnings Per Share Basic EPS is calculated by dividing net income 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 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. Our common stock equivalents include the weighted average dilutive effect of performance-based restricted stock units granted to our chief executive officer in the first quarter of 2015 as well as the weighted average dilutive effect of warrants for the period of time they were outstanding during 2014. The following is a reconciliation of the numerator and denominator of the basic and diluted EPS computations for the periods presented: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ $ $ $ Weighted average number of common shares outstanding Dilutive effect of restricted stock units (2) — — — — Dilutive effect of warrants (3) — — — Weighted average number of common shares outstanding Net income per common share (1) $ $ $ $ Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ $ $ $ Weighted average number of common shares outstanding Dilutive effect of restricted stock units (2) — — — Dilutive effect of warrants (3) — — — Weighted average number of common shares outstanding Net income per common share (1) $ $ $ $ (1) Net of preferred stock dividends. (2) Mr. Kaufman was granted restricted stock units which vest at the end of a four-year performance period based upon our achievement of total shareholder return objectives. See Note 12 — “Equity” for further details. (3) On July 1, 2014, we acquired and canceled all of our warrants. See Note 12 — “Equity” for further details.

Agreements and Tansactions with

Agreements and Tansactions with Related Parties	6 Months Ended
	Jun. 30, 2015
Agreements and Transactions with Related Parties
Agreements and Transactions with Related Parties	Note 14 — Agreements and Transactions with Related Parties Management Agreement We, ARLP and Arbor Realty SR, Inc. have a management agreement with our Manager, pursuant to which our Manager provides certain services and we pay our Manager a base management fee and under certain circumstances, an annual incentive fee. The base management fee is an arrangement whereby we reimburse our Manager for its actual costs incurred in managing our business based on the parties’ agreement in advance on an annual budget with subsequent quarterly true-ups to actual costs. We retain all origination fees on investments. The incentive fee is measured on an annual basis and is calculated as (1) 25% of the amount by which (a) our 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 our Manager to ARLP per ARLP partnership unit, the offering price per share of our 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 our 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 us to consider, from time to time, the payment of additional “success-based” fees to our Manager 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 we terminate or elect not to renew the management agreement without cause, we are required to pay the termination fee of $10.0 million. The following table sets forth our base management fees and incentive fees for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, Management Fees: 2015 2014 2015 2014 Base $ $ $ $ Incentive — — — — Total management fee $ $ $ $ For the three and six months ended June 30, 2015 and 2014, no success-based payments were made. Other Related Party Transactions Due from related party was $2.5 million and less than $0.1 million at June 30, 2015 and December 31, 2014, respectively, and consisted primarily of paydowns to be remitted and escrows held by our Manager and its affiliates related to real estate transactions. Due to related party was $2.0 million at June 30, 2015 and consisted primarily of base management fees due to our Manager , of which $0.7 million will be remitted by us in the following quarter. At December 31, 2014, due to related party was $2.7 million and consisted primarily of base management fees due to our Manager that we remitted in the following quarter. In April 2015, we originated a $6.3 million bridge loan on a multifamily property owned by a consortium of investors consisting of certain of our officers, including Mr. Ivan Kaufman and our Manager, who together own an interest of approximately 90% in the borrowing entity. The loan has an interest rate of LIBOR plus 4.50% with a LIBOR floor of 0.25% and a maturity date of April 2018. Interest income recorded from this loan totaled $0.1 million for the three months ended June 30, 2015. In February 2015, we modified an $18.0 million preferred equity investment, increasing our balance to $23.0 million with a fixed interest rate of 10% and a maturity date of February 2018. In order to accomplish the modification, we formed a joint venture with a consortium of investors consisting of certain of our officers, including Mr. Ivan Kaufman, and other related parties, to invest in an additional $2.0 million preferred equity investment that is generally subordinate to ours. Interest income recorded from this loan was approximately $0.6 million and $1.1 million for the three and six months ended June 30, 2015, respectively. In the first quarter of 2015, we invested $9.6 million for 50% of our Manager’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business. As a result of this transaction, we had an initial indirect interest of 22.5% in this entity. During the six months ended June 30, 2015, we invested $5.3 million through this joint venture in non-qualified residential mortgages purchased from the mortgage banking business’s origination platform. We recorded income of $1.5 million and $4.5 million from these investments during the three and six months ended June 30, 2015, respectively. See Note 5 — “Investment in Equity Affiliates” for further details . During the third quarter of 2014, we invested $0.1 million for a 5% interest in a joint venture that owns two multifamily properties. The joint venture consists of a consortium of investors consisting of certain of our officers, including Mr. Ivan Kaufman, and other related parties, who together own an interest of approximately 95%. In August 2014, we originated two bridge loans totaling $5.0 million to the joint venture with an interest rate of 5.5% over one-month LIBOR and a maturity date of August 2015. Interest income recorded from these loans totaled $0.1 million for both the three and six months ended June 30, 2015. In July 2014, we originated a $30.4 million bridge loan for an office property owned by a consortium of investors including Mr. Ivan Kaufman and his affiliates, who together own an interest of approximately 24% in the borrowing entity. The loan has an interest rate of LIBOR plus 7.90% and a maturity date of January 2016. Interest income recorded from this loan totaled $0.7 million and $1.4 million for the three and six months ended June 30, 2015, respectively. In March 2014, we originated a bridge loan to a third party borrower for a portfolio of properties with an unpaid principal balance of $70.1 million, of which, $15.0 million was financed with junior loan participations to our Manager. The loan has an interest rate of 6.38% and a maturity date of March 2016. In May 2014, the junior loan participations to our Manager were paid off. The participations had a weighted average interest rate of 7.20%. Interest income recorded from this loan totaled $1.2 million and $2.4 million for the three and six months ended June 30, 2015, respectively, and $1.2 million and $1.4 million for the three and six months ended June 30, 2014. We had two loans totaling $22.4 million, which were secured by a property purchased in 2011 by a third party borrower from our Manager . In the first quarter of 2014, our Manager purchased the property from the prior borrower subject to our loans. In connection with this purchase, our Manager paid down the loans by $2.3 million and we restructured our remaining debt outstanding into a first mortgage of $14.6 million with a maturity date of March 2015 and a second mortgage of $5.1 million with a maturity date of April 2015, both with an interest rate of LIBOR plus 4.80%. The maturity date on both of these loans was extended to October 2015 which we considered to be a troubled debt restructuring. Interest income recorded from these loans totaled $0.2 million and $0.4 million for the three and six months ended June 30, 2015, respectively, and $0.2 million and $0.6 million for the three and six months ended June 30, 2014, respectively. In June 2013, our Board of Directors formed a special committee consisting of independent directors in connection with the exploration and evaluation of a potential transaction with our manager involving the acquisition of our Manager’s Fannie Mae, DUS, FHA and CMBS platforms, as well as the internalization of the management of our current business. There were preliminary discussions between the special committee and representatives of our Manager regarding a potential transaction during the second and third quarter of 2013. In connection therewith, the special committee engaged legal, financial and accounting advisors resulting in approximately $1.4 million of advisory fees during 2013. In late June of 2014, preliminary discussions regarding a possible transaction resumed but we cannot provide any assurance whether any transaction between us and our Manager will occur, or if a transaction did occur, any information on 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. In December 2011, we completed a restructuring of a $67.6 million preferred equity investment on the Lexford Portfolio (“Lexford”), which is a portfolio of multifamily assets. We, along with a consortium of independent outside investors, made an additional preferred equity investment of $25.0 million in Lexford of which we held a $10.5 million interest, and Mr. Fred Weber, our 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 and was paid down during 2014 and 2015 to a balance of $8.0 million at June 30, 2015. The additional preferred equity investment had a fixed interest rate of 12% and a maturity date in June 2020. We, along with the same outside investors, also made a $0.1 million equity investment into Lexford, of which we held a $44,000 noncontrolling interest, and do not have the power to control the significant activities of the entity. During the fourth quarter of 2011, we recorded losses from the entity against the equity investment, reducing the balance to zero. 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, our chairman and chief executive officer, and has a contract with the new entity for 7.5 years and is 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. We have provided limited (“bad boy”) guarantees for certain debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us. At June 30, 2015, this debt had an aggregate outstanding balance of $806.1 million and is scheduled to mature between 2017 and 2025. Interest income recorded from loans originated in 2013 or prior years with our affiliates totaled $0.1 million and $0.2 million for the three and six months ended June 30, 2015, respectively and $0.9 million and $1.7 million for the three and six months ended June 30, 2014, respectively. We are dependent upon our Manager with whom we have a conflict of interest, to provide services to us that are vital to its operations. Our chairman, chief executive officer and president, Mr. Ivan Kaufman, is also the chief executive officer and president of our Manager, and, our chief financial officer and treasurer, Mr. Paul Elenio, is the chief financial officer of our Manager. In addition, Mr. Kaufman and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 92% of the outstanding membership interests of our Manager and certain of our employees and directors also hold an ownership interest in our Manager. Furthermore, one of our former directors is general counsel to our Manager and another of our directors also serves as the trustee of one of the Kaufman Entities that holds a majority of the outstanding membership interests in our Manager and co-trustee of another Kaufman Entity that owns an equity interest in our Manager. Our Manager currently holds approximately 5.3 million of our common shares, representing approximately 10% of the voting power of our outstanding stock as of June 30, 2015. Our Board of Directors approved a resolution under our charter allowing Ivan Kaufman and our Manager , (which Mr. Kaufman has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our charter as amended.

Due to Borrowers

Due to Borrowers	6 Months Ended
	Jun. 30, 2015
Due to Borrowers
Due to Borrowers	Note 15 — Due to Borrowers Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our 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 of Significant Accoun24

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our 2014 Annual Report, which was filed with the SEC. The accompanying unaudited consolidated financial statements include our financial statements, our wholly-owned subsidiaries, and partnerships or other joint ventures in which we own a voting interest of greater than 50 percent, and variable interest entities (“VIEs”) of which we are 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 us 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, we have separately disclosed parenthetically the assets and liabilities of our collateralized debt obligation (“CDO”) and collateralized loan obligation (“CLO”) subsidiaries on our consolidated balance sheets. Entities in which we have significant influence are accounted for primarily under the equity method. As a REIT, we are generally not subject to federal income tax on our REIT—taxable income that we distribute to our stockholders, provided that we distribute at least 90% of our REIT—taxable income and meet certain other requirements. As of June 30, 2015 and 2014, we were in compliance with all REIT requirements and, therefore, have not provided for income tax expense for the six months ended June 30, 2015 and 2014. Certain of our assets that produce non-qualifying income are owned by our taxable REIT subsidiaries, the income of which is subject to federal and state income taxes. During the six months ended June 30, 2015 and 2014, we did not record any provision for income taxes for these taxable REIT subsidiaries as we expect any income to be offset by available federal and state net operating loss carryforwards. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) amended its guidance on the balance sheet presentation of debt issuance costs. The guidance is effective for the first quarter of 2016 and we do not expect it to have a material effect on our consolidated financial statements other than the balance sheet presentation of debt and other assets. In February 2015, the FASB amended its guidance on the consolidation analysis of variable interest entities. The guidance is effective for the first quarter of 2016 and we are currently evaluating the impact it may have on our consolidated financial statements. In January 2015, the FASB eliminated the concept of extraordinary items and thus the requirement to assess whether an event or transaction requires extraordinary classification on the financial statements. The guidance is effective for the first quarter of 2016. We early adopted this new guidance in the first quarter of 2015 and it did not have a material effect on our consolidated financial statements.

Loans and Investments (Tables)

Loans and Investments (Tables)	6 Months Ended
	Jun. 30, 2015
Loans and Investments
Schedule of composition of loan and investment portfolio	June 30, 2015 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity Wtd. Avg. First Dollar LTV Ratio (2) Wtd. Avg. Last Dollar LTV Ratio (3) Bridge loans $ % % % % Mezzanine loans % % % % Junior participation loans % % % % Preferred equity investments % % % % % % % % Unearned revenue ) Allowance for loan losses ) Loans and investments, net $ December 31, 2014 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity Wtd. Avg. First Dollar LTV Ratio (2) Wtd. Avg. Last Dollar LTV Ratio (3) Bridge loans $ % % % % Mezzanine loans % % % % Junior participation loans % % % % Preferred equity investments % % % % % % % % Unearned revenue ) Allowance for loan losses ) Loans and investments, net $ (1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balances of each loan in our 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 our 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 we will absorb a total loss of our position. (3) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.
Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class	June 30, 2015 Asset Class Unpaid Principal Balance Percentage of Portfolio Wtd. Avg. Internal Risk Rating Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multi-family $ % % % Office % % % Land % % % Hotel % % % Other % % % Total $ % % % December 31, 2014 Asset Class Unpaid Principal Balance Percentage of Portfolio Wtd. Avg. Internal Risk Rating Wtd. Avg. First Dollar LTV Ratio Wtd. Avg. Last Dollar LTV Ratio Multi-family $ % % % Office % % % Land % % % Hotel % % % Other % % % Total $ % % %
Summary of the changes in the allowance for loan losses	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Allowance at beginning of the period $ $ $ $ Provision for loan losses Charge-offs — ) — ) Recoveries of reserves ) ) ) ) Allowance at end of the period $ $ $ $
Summary of charge-offs and recoveries	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Charge-offs: Multi-family $ — $ ) $ — $ ) Total $ — $ ) $ — $ ) Recoveries: Multi-family $ ) $ ) $ ) $ ) Total $ ) $ ) $ ) $ ) Net Recoveries (Charge-offs) $ $ $ $ ) Ratio of net recoveries (charge-offs) during the period to average loans and investments outstanding during the period % % % )%
Summary of the company's impaired loans by asset class	June 30, 2015 Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Asset Class Unpaid Principal Balance Carrying Value (1) Allowance for Loan Losses Average Recorded Investment (2) Interest Income Recognized Average Recorded Investment (2) Interest Income Recognized Multi-family $ $ $ $ $ $ $ Office Land — — Hotel Total $ $ $ $ $ $ $ December 31, 2014 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Asset Class Unpaid Principal Balance Carrying Value (1) Allowance for Loan Losses Average Recorded Investment (2) Interest Income Recognized Average Recorded Investment (2) Interest Income Recognized Multi-family $ $ $ $ $ $ $ Office Land — — Hotel Total $ $ $ $ $ $ $ (1) Represents the UPB of impaired loans less unearned revenue and other holdbacks and adjustments by asset class and was comprised of 10 loans at both June 30, 2015 and December 31, 2014. (2) Represents an average of the beginning and ending UPB of each asset class.
Summary of the company's non-performing loans by asset class	June 30, 2015 December 31, 2014 Asset Class Carrying Value Less Than 90 Days Past Due Greater Than 90 Days Past Due Carrying Value Less Than 90 Days Past Due Greater Than 90 Days Past Due Multi-family $ $ — $ $ $ $ Office — — Total $ $ — $ $ $ $
Summary of loan modifications and extensions by asset class that the entity considered to be troubled debt restructurings by asset class	Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Asset Class Number of Loans Original Unpaid Principal Balance Original Rate of Interest Modified Unpaid Principal Balance Modified Weighted Average Rate of Interest Number of Loans Original Unpaid Principal Balance Original Weighted Average Rate of Interest Modified Unpaid Principal Balance Modified Weighted Average Rate of Interest Multifamily $ % $ % $ % $ %

Securities (Tables)

Securities (Tables)	6 Months Ended
	Jun. 30, 2015
Securities
Summary of the company's securities classified as available-for-sale	The following is a summary of our securities classified as available-for-sale at June 30, 2015: Face Amortized Cumulative Unrealized Carrying Value / Estimated Value Cost Gain Fair Value Common equity securities — The following is a summary of our securities classified as available-for-sale at December 31, 2014: Face Amortized Cumulative Unrealized Carrying Value / Estimated Value Cost (Loss) / Gain Fair Value Commercial mortgage-backed security (CMBS) $ $ $ ) $ Common equity securities — Total available-for-sale securities $ $ $ $

Investments in Equity Affilia27

Investments in Equity Affiliates (Tables)	6 Months Ended
	Jun. 30, 2015
Investments in Equity Affiliates
Summary of the company's investments in equity affiliates	Investment in Equity Affiliates at UPB of Loans to Equity Affiliates at Equity Affiliates June 30, 2015 December 31, 2014 June 30, 2015 Arbor Residential Investor LLC $ $ — $ — West Shore Café Lightstone Value Plus REIT L.P. — Issuers of Junior Subordinated Notes — JT Prime — East River Portfolio Lexford Portfolio Ritz-Carlton Club — — — Total $ $ $

Real Estate Owned and Held-Fo28

Real Estate Owned and Held-For-Sale (Tables)	6 Months Ended
	Jun. 30, 2015
Real Estate Owned and Held-For-Sale
Schedule of real estate owned	June 30, 2015 December 31, 2014 Multifamily Portfolio Hotel Portfolio Total Multifamily Portfolio Hotel Portfolio Total Land $ $ $ $ $ $ Building and intangible assets Less: accumulated depreciation and amortization ) ) ) ) ) ) Real estate owned, net $ $ $ $ $ $
Schedule of results of operations for properties classified as held-for-sale	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue: Property operating income $ $ $ $ Expenses: Property operating expense Depreciation Net income $ $ $ $

Debt Obligations (Tables)

Debt Obligations (Tables)	6 Months Ended
	Jun. 30, 2015
Credit facilities and repurchase agreements
Debt Obligations
Schedule of borrowings	June 30, 2015 December 31, 2014 Debt Collateral Weighted Debt Collateral Weighted Carrying Carrying Average Carrying Carrying Average Value Value Note Rate Value Value Note Rate $150 million warehouse repurchase facility $ $ % $ — $ — — $100 million warehousing credit facility % % $75 million warehousing credit facility % % $75 million warehousing credit facility % % $25 million term credit facility % — — — $15 million term credit facility — % — % Total credit facilities and repurchase agreements $ $ % $ $ %
Collateralized loan obligations
Debt Obligations
Schedule of borrowings	The following table outlines borrowings and the corresponding collateral under our CLOs as of June 30, 2015: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal Value Cash (1) At-Risk (2) CLO III $ $ $ $ $ $ — CLO IV — Total CLOs $ $ $ $ $ $ — The following table outlines borrowings and the corresponding collateral under our CLOs as of December 31, 2014: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal Value Cash (1) At-Risk (2) CLO II $ $ $ $ $ $ — CLO III — Total CLOs $ $ $ $ $ $ — CLO II – Issued two investment grade tranches in January 2013 with a stated maturity date in February 2023. Interest was variable based on three-month LIBOR; the weighted average note rate was 2.56%. CLO III — Issued three investment grade tranches in April 2014 with a replacement period through October 2016 and a stated maturity date in May 2024. Interest is variable based on three-month LIBOR; the weighted average note rate was 2.62% and 2.60% at June 30, 2015 and December 31, 2014, respectively. CLO IV — Issued three investment grade tranches in February 2015 with a replacement period through September 2017 and a stated maturity date in March 2025. Interest is variable based on three-month LIBOR; the weighted average note rate was 2.47% at June 30, 2015. (1) Represents restricted cash held for principal repayments as well as for reinvestment 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.
Collateralized debt obligations
Debt Obligations
Schedule of borrowings	The following table outlines borrowings and the corresponding collateral under our CDO as of June 30, 2015: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal (1) Value (1) Cash (2) At-Risk (3) CDO III $ $ $ $ $ $ The following table outlines borrowings and the corresponding collateral under our CDOs as of December 31, 2014: Debt Collateral Loans Cash Face Carrying Unpaid Carrying Restricted Collateral Value Value Principal (1) Value (1) Cash (2) At-Risk (3) CDO I $ $ $ $ $ $ CDO II CDO III Total CDOs $ $ $ $ $ $ CDO I — Issued four investment grade tranches in January 2005 with a stated maturity date in February 2040. Interest was variable based on three-month LIBOR; the weighted average note rate was 3.23% at December 31, 2014. CDO II — Issued nine investment grade tranches in January 2006 with stated maturity date in April 2038. Interest was variable based on three-month LIBOR; the weighted average note rate was 6.22% at December 31, 2014. CDO III — Issued ten investment grade tranches in December 2006 with a stated maturity date in January 2042. Interest is variable based on three-month LIBOR; the weighted average note rate was 1.42% and 0.98% at June 30, 2015 and December 31, 2014, respectively. (1) Amounts include loans to real estate assets consolidated by us that were reclassified to real estate owned and held-for-sale, net on the consolidated financial statements. (2) Represents restricted cash held for principal repayments in the CDOs. Does not include restricted cash related to interest payments, delayed fundings and expenses. (3) 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.
Notes payable
Debt Obligations
Schedule of borrowings	June 30, 2015 December 31, 2014 Debt Collateral Debt Collateral Carrying Carrying Carrying Carrying Value Value Value Value Junior loan participation, secured by our 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 our interest in a first mortgage loan with a principal balance of $28.8 million, expiration January 2016, interest is based on a portion of the interest received from the loan which has a fixed rate of 15.0% — — Total notes payable $ $ $ $
Collateralized debt obligations and collateralized loan obligations
Debt Obligations
Summary of the company's CLO compliance tests as of the most recent determination dates	The chart below is a summary of our CLO compliance tests as of the most recent determination dates in July 2015: Cash Flow Triggers CLO III CLO IV Overcollateralization (1) Current % % Limit % % Pass / Fail Pass Pass Interest Coverage (2) Current % % Limit % % Pass / Fail Pass Pass (1) The overcollateralization ratio divides the total principal balance of all collateral in the 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 CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g. CCC-) as defined in each CLO vehicle. (2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.
Summary of the Company's CDO and CLO overcollateralization ratios	Determination Date CDO III CLO III CLO IV July 2015 (1) — % % April 2015 % % % January 2015 % % — October 2014 % % — July 2014 % % — (1) CDO III was redeemed in July 2015.

Derivative Financial Instrume30

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Derivative Financial Instruments
Schedule of derivative financial instruments held by the company	The following is a summary of the derivative financial instruments held by us (dollars in thousands): Notional Value Fair Value Designation\ Cash Flow Derivative Count June 30, 2015 Count December 31, 2014 Expiration Date Balance Sheet Location June 30, 2015 December 31, 2014 Non-Qualifying Basis Swaps — $ — 1 $ — Other Assets $ — $ Non-Qualifying LIBOR Cap — $ — 1 $ — Other Assets $ — $ — Qualifying LIBOR Cap 1 $ — $ — 2017 Other Assets $ $ — Qualifying Interest Rate Swaps 6 $ 12 $ 2016 - 2017 Other Liabilities $ ) $ )
Schedule of the effect of the company's derivative financial instruments on the statements of income	The following table presents the effect of our derivative financial instruments on the Statements of Income (dollars in thousands): Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion) For the Six Months Ended Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Expense (Effective Portion) For the Six Months Ended Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Loss on Termination of Swaps (Ineffective Portion) For the Six Months Ended Amount of Loss Recognized in Loss on Termination of Swaps (Ineffective Portion) For the Six Months Ended Amount of Loss Recognized in Other Income For the Six Months Ended Designation\ Cash Flow Derivative June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Non- Qualifying Basis Swaps $ — $ — $ — $ — $ — $ — $ ) $ — $ — $ — Qualifying Interest Rate Swaps/Cap $ $ $ ) $ ) $ ) $ — $ — $ — $ — $ — Non- Qualifying Forward Contracts $ — $ — $ — $ — $ — $ — $ — $ — $ — $ )

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	6 Months Ended
	Jun. 30, 2015
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 our variable interests in identified VIEs, of which we are not the primary beneficiary, as of June 30, 2015: Type Carrying Amount (1) Maximum Exposure to Loss (2) Loans $ $ Loans and equity investments Junior subordinated notes (3) Total $ $ (1) Represents the carrying amount of loans and investments before reserves. At June 30, 2015, $189.2 million of loans to VIEs had corresponding loan loss reserves of approximately $113.2 million and $40.3 million of loans to VIEs were related to loans classified as non-performing. See Note 3 — “Loans and Investments” for further details. (2) Our maximum exposure to loss as of June 30, 2015 would not exceed the carrying amount of its investment. (3) 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 our investments were funded by the entities that issued the junior subordinated notes, it is not considered to be at risk.

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value.
Summary of the carrying values and the estimated fair values of the Company's financial instruments	June 30, 2015 December 31, 2014 Estimated Estimated Carrying Value Fair Value Carrying Value Fair Value Financial assets: Loans and investments, net $ $ $ $ Available-for-sale securities Derivative financial instruments Financial liabilities: Credit and repurchase facilities $ $ $ $ Collateralized loan obligations Collateralized debt obligations Senior unsecured notes Junior subordinated notes Notes payable Mortgage note payable - real estate owned and held-for-sale Derivative financial instruments
Schedule of certain financial assets and financial liabilities measured at fair value on a recurring basis	We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair value of these financial assets and liabilities was determined using the following inputs as of June 30, 2015: Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Available-for-sale securities $ $ $ $ — $ — Derivative financial instruments — — Financial liabilities: Derivative financial instruments $ $ $ — $ $ —
Schedule of financial assets measured at fair value on a recurring basis using Level 3 inputs	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 Securities Balance as of December 31, 2014 $ Adjustment to fair value: Change in fair value Payoff of CMBS investment ) Balance as of June 30, 2015 $ —
Schedule of certain financial and non-financial assets measured at fair value on a nonrecurring basis	We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair value of these financial assets was determined using the following inputs as of June 30, 2015: Net Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Impaired loans, net (1) $ $ $ — $ — $ (1) We had an allowance for loan losses of $117.6 million relating to 10 loans with an aggregate carrying value, before loan loss reserves, of approximately $224.4 million at June 30, 2015.
Schedule of quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis	June 30, 2015 Valuation Significant Unobservable Range Fair Value Technique(s) Inputs (Weighted Average) Financial assets: Impaired loans (1): Multi-family $ Direct capitalization analysis and discounted cash flows Discount rate Capitalization rate Revenue growth rate 8.00% 6.50% to 9.75% (7.30)% 2.00% Office Discounted cash flows Discount rate Capitalization rate Revenue growth rate 10.00% to 11.25% (10.50)% 8.25% to 9.25% (9.01)% 2.50% to 3.00% (2.63)% Land Discounted cash flows Discount rate Capitalization rate Revenue growth rate 15.00% 7.25% 3.00% Hotel Discounted cash flows Discount rate Capitalization rate Revenue growth rate 9.25% 7.25% 3.00% (1) Includes all impaired loans regardless of the period in which a loan loss provision was recorded.
Schedule of fair value of assets and liabilities	We measure certain assets and liabilities for which fair value is only disclosed. The fair value of these assets and liabilities was determined using the following input levels as of June 30, 2015: Fair Value Measurements Carrying Fair Using Fair Value Hierarchy Value Value Level 1 Level 2 Level 3 Financial assets: Loans and investments, net $ $ $ — $ — $ Financial liabilities: Credit facilities and repurchase agreements $ $ $ — $ — $ Collateralized loan obligations — — Collateralized debt obligation — — Senior unsecured notes — — Junior subordinated notes — — Notes payable — — Mortgage note payable — real estate owned — —

Equity (Tables)

Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Equity
Schedule of dividends declared by the Company (on a per share basis)	The following table presents dividends declared (on a per share basis) for the six months ended June 30, 2015: Common Stock Preferred Stock Dividend (1) Declaration Date Dividend Declaration Date Series A Series B Series C February 11, 2015 $ February 2, 2015 $ $ $ April 29, 2015 $ April 29, 2015 $ $ $ (1) The dividend declared on February 2, 2015 for the Series A, B and C preferred stock was for the period December 1, 2014 through February 28, 2015. The dividend declared on April 29, 2015 for the Series A, B and C preferred stock was for the period March 1, 2015 through May 31, 2015.
Schedule of reclassifications out of accumulated other comprehensive loss	Six Months Ended June 30, 2015 2014 Statement of Income Caption Net realized losses on derivatives designated as cash flow hedges: Interest Rate Swaps $ ) $ ) Interest expense (1) Termination of Interest Rate Swaps $ ) $ — Loss on termination of swaps (1) Net realized gain on sale of available-for-sale investments: RMBS investment $ — $ Other income (2) (1) See Note 8 — “Derivative Financial Instruments” for additional details . (2) See Note 4 — “Securities” for additional details .

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Reconciliation of the numerator and denominator of the basic and diluted EPS computations	Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ $ $ $ Weighted average number of common shares outstanding Dilutive effect of restricted stock units (2) — — — — Dilutive effect of warrants (3) — — — Weighted average number of common shares outstanding Net income per common share (1) $ $ $ $ Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 Basic Diluted Basic Diluted Net income attributable to common stockholders (1) $ $ $ $ Weighted average number of common shares outstanding Dilutive effect of restricted stock units (2) — — — Dilutive effect of warrants (3) — — — Weighted average number of common shares outstanding Net income per common share (1) $ $ $ $ (1) Net of preferred stock dividends. (2) Mr. Kaufman was granted restricted stock units which vest at the end of a four-year performance period based upon our achievement of total shareholder return objectives. See Note 12 — “Equity” for further details. (3) On July 1, 2014, we acquired and canceled all of our warrants. See Note 12 — “Equity” for further details.

Agreements and Transactions wit

Agreements and Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2015
Agreements and Transactions with Related Parties
Schedule of company's base management fees and incentive fees	Three Months Ended June 30, Six Months Ended June 30, Management Fees: 2015 2014 2015 2014 Base $ $ $ $ Incentive — — — — Total management fee $ $ $ $

Loans and Investments (Details)

Loans and Investments (Details) - Subsequent Event Type [Domain]	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)item	Mar. 31, 2015USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Loans and Investments
Loans and investments, gross		$ 1,595,706,784		$ 1,595,706,784		$ 1,587,429,498
Unearned revenue		(9,577,179)		(9,577,179)		(12,466,528)
Allowance for loan losses		(117,563,544)	$ (115,059,988)	(117,563,544)	$ (115,059,988)	(115,487,320)	$ (116,470,000)	$ (116,743,412)	$ (122,277,411)
Loans and investments, net		$ 1,468,566,061		$ 1,468,566,061		$ 1,459,475,650
Percent of Total		100.00%		100.00%		100.00%
Loan Count | item				146		139
Wtd. Avg. Pay Rate (as a percent)				5.65%		5.45%
Wtd. Avg. Remaining Months to Maturity				19 months 12 days		22 months 9 days
First Dollar LTV Ratio (as percent)		10.00%		10.00%		13.00%
Last Dollar LTV Ratio (as percent)		76.00%		76.00%		76.00%
Number of portfolio segments | item				1
Other interest income, net		$ 7,884,344		$ 7,884,344
Labor and Related Expense		4,966,138	$ 3,552,548	9,256,344	$ 6,938,497
$87 million warehouse repurchase facility
Loans and Investments
Committed line							87,000,000
Debt repaid	$ 87,000,000
Gain	6,700,000
Labor and Related Expense	$ 1,200,000
Higher credit risk
Loans and Investments
Loans and investments, gross		$ 192,000,000		$ 192,000,000		$ 189,400,000
Last Dollar LTV Ratio (as percent)		95.00%		95.00%		94.00%
Credit risk concentration
Loans and Investments
Loans and investments, gross		$ 1,595,706,784		$ 1,595,706,784		$ 1,587,429,498
Percent of Total		100.00%		100.00%		100.00%
First Dollar LTV Ratio (as percent)		10.00%		10.00%		13.00%
Last Dollar LTV Ratio (as percent)		76.00%		76.00%		76.00%
Credit risk concentration | Minimum
Loans and Investments
Credit risk individual ratings | item				1
Credit risk concentration | Maximum
Loans and Investments
Credit risk individual ratings | item				5
Credit risk concentration | Risk rating, three
Loans and Investments
Credit risk individual ratings | item				3
Credit risk concentration | Risk rating, four
Loans and Investments
Credit risk individual ratings | item				4
Credit risk concentration | Risk rating, five
Loans and Investments
Credit risk individual ratings | item				5
Credit risk concentration | Risk rating, 3.5
Loans and Investments
Credit risk individual ratings | item				3.5
Credit risk concentration | Risk rating, 4.5
Loans and Investments
Credit risk individual ratings | item				4.5
Total assets | Credit risk concentration
Loans and Investments
Loan Count | item				17		31
Number of different borrowers | item				5		5
Concentration risk, percentage				19.00%		23.00%
Bridge Loans
Loans and Investments
Loans and investments, gross		$ 1,346,226,583		$ 1,346,226,583		$ 1,273,439,238
Percent of Total		84.00%		84.00%		80.00%
Loan Count | item				111		101
Wtd. Avg. Pay Rate (as a percent)				5.51%		5.19%
Wtd. Avg. Remaining Months to Maturity				17 months 21 days		19 months 24 days
First Dollar LTV Ratio (as percent)		0.00%		0.00%		0.00%
Last Dollar LTV Ratio (as percent)		75.00%		75.00%		74.00%
Bridge Loans | First mortgage
Loans and Investments
Loans and investments, gross							$ 116,000,000
Mezzanine Loans
Loans and Investments
Loans and investments, gross		$ 61,952,792		$ 61,952,792		$ 76,392,650
Percent of Total		4.00%		4.00%		5.00%
Loan Count | item				14		17
Wtd. Avg. Pay Rate (as a percent)				9.44%		9.78%
Wtd. Avg. Remaining Months to Maturity				44 months 24 days		37 months 3 days
First Dollar LTV Ratio (as percent)		47.00%		47.00%		47.00%
Last Dollar LTV Ratio (as percent)		82.00%		82.00%		81.00%
Junior mortgage loans
Loans and Investments
Loans and investments, gross		$ 94,256,582		$ 94,256,582		$ 104,091,952
Percent of Total		6.00%		6.00%		7.00%
Loan Count | item				3		4
Wtd. Avg. Pay Rate (as a percent)				4.05%		4.62%
Wtd. Avg. Remaining Months to Maturity				8 months 3 days		12 months 9 days
First Dollar LTV Ratio (as percent)		92.00%		92.00%		86.00%
Last Dollar LTV Ratio (as percent)		90.00%		90.00%		88.00%
Preferred equity investments
Loans and Investments
Loans and investments, gross		$ 93,270,827		$ 93,270,827		$ 133,505,658
Percent of Total		6.00%		6.00%		8.00%
Loan Count | item				18		17
Wtd. Avg. Pay Rate (as a percent)				6.86%		6.11%
Wtd. Avg. Remaining Months to Maturity				39 months 9 days		45 months 15 days
First Dollar LTV Ratio (as percent)		49.00%		49.00%		62.00%
Last Dollar LTV Ratio (as percent)		80.00%		80.00%		84.00%

Loans and Investments (Details

Loans and Investments (Details 2)	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item
Loans and Investments
Unpaid Principal Balance	$ 1,595,706,784	$ 1,587,429,498
Percentage of Portfolio	100.00%	100.00%
First Dollar LTV Ratio (as percent)	10.00%	13.00%
Last Dollar LTV Ratio (as percent)	76.00%	76.00%
Loans and investments portfolio | New York
Loans and Investments
Concentration risk, percentage	28.00%	28.00%
Loans and investments portfolio | Florida
Loans and Investments
Concentration risk, percentage	14.00%	14.00%
Loans and investments portfolio | Texas
Loans and Investments
Concentration risk, percentage	13.00%	10.00%
Loans and investments portfolio | California
Loans and Investments
Concentration risk, percentage	10.00%
Credit risk concentration
Loans and Investments
Unpaid Principal Balance	$ 1,595,706,784	$ 1,587,429,498
Percentage of Portfolio	100.00%	100.00%
First Dollar LTV Ratio (as percent)	10.00%	13.00%
Last Dollar LTV Ratio (as percent)	76.00%	76.00%
Credit risk concentration | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	3.1	3.1
Credit risk concentration | Multifamily
Loans and Investments
Unpaid Principal Balance	$ 1,093,772,546	$ 1,157,462,400
Percentage of Portfolio	68.50%	72.90%
First Dollar LTV Ratio (as percent)	7.00%	10.00%
Last Dollar LTV Ratio (as percent)	74.00%	73.00%
Credit risk concentration | Multifamily | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	2.9	2.9
Credit risk concentration | Office
Loans and Investments
Unpaid Principal Balance	$ 207,730,937	$ 230,491,164
Percentage of Portfolio	13.00%	14.50%
First Dollar LTV Ratio (as percent)	27.00%	29.00%
Last Dollar LTV Ratio (as percent)	82.00%	79.00%
Credit risk concentration | Office | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	3.3	3.3
Credit risk concentration | Land
Loans and Investments
Unpaid Principal Balance	$ 188,844,968	$ 128,367,601
Percentage of Portfolio	11.80%	8.10%
First Dollar LTV Ratio (as percent)	4.00%	6.00%
Last Dollar LTV Ratio (as percent)	85.00%	88.00%
Credit risk concentration | Land | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	3.6	3.9
Credit risk concentration | Hotel
Loans and Investments
Unpaid Principal Balance	$ 66,250,000	$ 66,250,000
Percentage of Portfolio	4.20%	4.20%
First Dollar LTV Ratio (as percent)	32.00%	32.00%
Last Dollar LTV Ratio (as percent)	83.00%	83.00%
Credit risk concentration | Hotel | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	3.5	3.5
Credit risk concentration | Other
Loans and Investments
Unpaid Principal Balance	$ 39,108,333	$ 4,858,333
Percentage of Portfolio	2.50%	0.30%
First Dollar LTV Ratio (as percent)	9.00%	69.00%
Last Dollar LTV Ratio (as percent)	66.00%	75.00%
Credit risk concentration | Other | Weighted average
Loans and Investments
Wtd. Avg. Internal Risk Rating | item	2.6	2.9

Loans and Investments (Detail38

Loans and Investments (Details 3)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Dec. 31, 2014USD ($)item
Loans and Investments
Number of impaired loans | item		3	3	4
Carrying value of impaired loan before loan loss reserves	$ 114,800,000	$ 153,700,000	$ 127,800,000	$ 158,600,000
Impaired loans, provision for loan losses	1,110,629	3,950,000	2,110,629	4,950,000
Loans and Investments
Provision for loan losses (net of recoveries)	$ 1,093,544	(870,187)	$ 2,076,224	(735,843)
Number of impaired loans | item	10		10		10
Charge-offs to previously recorded reserves		832,737		6,501,079
Proceeds from Payoffs and Paydowns of Loans and Investments			$ (551,201,085)	(474,807,344)
Aggregate carrying value of impaired loans before reserves	$ 224,385,928		$ 224,385,928		$ 221,602,399
Number of loans for which no provision for loan loss made | item	0		0		0
Carry value of loans	$ 114,800,000	153,700,000	$ 127,800,000	158,600,000
Changes in allowance for loan losses
Allowance at beginning of the period	116,470,000	116,743,412	115,487,320	122,277,411
Provision for loan losses	1,110,629	3,950,000	2,110,629	4,950,000
Charge-offs		(832,737)		(6,501,079)
Recoveries of reserves	(17,085)	(4,800,687)	(34,405)	(5,666,344)
Allowance at end of the period	117,563,544	$ 115,059,988	$ 117,563,544	$ 115,059,988
Six loans collateralized by a land development project | Maturity date of September 2017
Loans and Investments
Carrying value of impaired loan before loan loss reserves	119,200,000
Loans and Investments
Number of loans with unpaid principal balance | item			6
Carry value of loans	119,200,000
Changes in allowance for loan losses
Allowance at end of the period	47,600,000		$ 47,600,000
Four loans collateralized by a land development project | Maturity date of September 2017
Loans and Investments
Carrying value of impaired loan before loan loss reserves	97,500,000
Loans and Investments
Number of loans with unpaid principal balance | item			4
Carry value of loans	$ 97,500,000
Weighted average accrual rate of interest (as a percent)			9.60%

Loans and Investments (Detail39

Loans and Investments (Details 4)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)item
Loans and Investments
Charge-offs		$ (832,737)		$ (6,501,079)
Recoveries	$ (17,085)	(4,800,687)	$ (34,405)	(5,666,344)
Net Recoveries (Charge-offs)	$ 17,085	$ 3,967,950	$ 34,405	$ (834,735)
Ratio of net charge-offs during the period to average loans and investments outstanding during the period	0.00%	0.20%	0.00%	(0.10%)
Unpaid Principal Balance	$ 234,098,702		$ 234,098,702		$ 231,886,876
Carrying value	224,385,928		224,385,928		221,602,399
Allowance for Loan losses	117,563,544		117,563,544		$ 115,487,320
Average Recorded Investment	233,247,371	$ 229,896,608	232,992,790	$ 232,984,994
Interest Income Recognized	$ 616,982	901,404	$ 1,219,054	1,389,940
Number of impaired loans | item	10		10		10
Multifamily
Loans and Investments
Charge-offs		(832,737)		(6,501,079)
Recoveries	$ (17,085)	(4,800,687)	$ (34,405)	(5,666,344)
Unpaid Principal Balance	39,205,489		39,205,489		$ 39,239,894
Carrying value	39,285,454		39,285,454		39,232,710
Allowance for Loan losses	36,935,489		36,935,489		36,469,894
Average Recorded Investment	39,214,032	54,400,857	39,222,692	57,667,857
Interest Income Recognized	73,892	218,529	143,981	432,270
Office
Loans and Investments
Unpaid Principal Balance	36,086,582		36,086,582		36,086,582
Carrying value	31,013,198		31,013,198		30,498,273
Allowance for Loan losses	24,472,444		24,472,444		23,972,444
Average Recorded Investment	36,086,582	40,586,582	36,086,582	40,586,582
Interest Income Recognized	282,192	511,501	557,045	786,296
Land
Loans and Investments
Unpaid Principal Balance	124,056,631		124,056,631		121,810,400
Carrying value	119,598,388		119,598,388		117,621,457
Allowance for Loan losses	52,455,611		52,455,611		51,344,982
Average Recorded Investment	123,196,757	117,409,169	122,933,516	117,230,555
Interest Income Recognized		171,374
Hotel
Loans and Investments
Unpaid Principal Balance	34,750,000		34,750,000		34,750,000
Carrying value	34,488,888		34,488,888		34,249,959
Allowance for Loan losses	3,700,000		3,700,000		$ 3,700,000
Average Recorded Investment	34,750,000	$ 17,500,000	34,750,000	17,500,000
Interest Income Recognized	$ 260,898		$ 518,028	$ 171,374

Loans and Investments (Detail40

Loans and Investments (Details 5)	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)loanitem	Dec. 31, 2014USD ($)loanitem
Non-performing loans by asset class
Number of loans | item	146	139
Carrying value of loans before loan loss reserves	$ 1,595,706,784	$ 1,587,429,498
Non-performing loans
Non-performing loans by asset class
Number of loans | item	3	3
Carrying value of loans before loan loss reserves	$ 6,500,000	$ 7,000,000
Loan loss reserves	$ 34,500,000	$ 34,000,000
Number of loans classified as non-performing which have loan loss reserve | loan	2	2
Carrying Value	$ 41,043,519	$ 41,043,556
Less Than 90 Days Past Due		765,799
Greater Than 90 Days Past Due	41,043,519	40,277,757
Multifamily | Non-performing loans
Non-performing loans by asset class
Carrying Value	32,765,799	32,765,799
Less Than 90 Days Past Due		765,799
Greater Than 90 Days Past Due	32,765,799	32,000,000
Office | Non-performing loans
Non-performing loans by asset class
Carrying Value	8,277,720	8,277,757
Greater Than 90 Days Past Due	$ 8,277,720	$ 8,277,757

Loans and Investments (Detail41

Loans and Investments (Details 6)	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014item
Troubled debt restructurings by asset class
Unfunded commitments on modified loans classified as troubled debt restructurings | $		$ 0
Number of loans considered to be troubled debt restructurings that subsequently considered non-performing	0	0	0
Number of additional loans considered to be troubled debt restructurings		0	0
Multifamily
Troubled debt restructurings by asset class
Number of loans considered to be troubled debt restructurings	4	5
Original Unpaid Principal Balance | $	$ 29,416,546	$ 35,609,122
Original Weighted Average Rate of Interest (as a percent)	4.95%	5.12%
Modified Unpaid Principal Balance | $	$ 29,416,456	$ 35,609,122
Modified Weighted Average Rate of Interest (as a percent)	4.95%	5.12%

Loans and Investments (Detail42

Loans and Investments (Details 7) - Jun. 30, 2015 $ in Millions	USD ($)item
Loans and Investments
Total interest reserves	$ 17.7
Number of loans | item	54
Aggregate unpaid principal balance	$ 756.4

Securities (Details)

Securities (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)item	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Available-for-sale securities
Carrying Value / Estimated Fair Value	$ 823,050			$ 823,050		$ 2,499,709
Principal paydowns of loan sold				(551,201,085)	$ (474,807,344)
Proceeds from sale of securities					33,904,172
Reverse of unrealized loss from accumulated other comprehensive loss	364,552	$ 29,394		423,341	(29,395)
Gain on sale of securities					518,640
Residential mortgage-backed security (RMBS)
Available-for-sale securities
Number of investments acquired with deteriorated credit quality | item			2
Aggregate carrying value of investment with deteriorated credit quality			$ 25,800,000
Proceeds from sale of securities			25,900,000
Available-for-sale Securities
Available-for-sale securities
Face Value						2,100,000
Amortized Cost						2,158,789
Cumulative Unrealized Gain						340,920
Carrying Value / Estimated Fair Value						2,499,709
Impairment charges	0	$ 0		0	$ 0
Available-for-sale Securities | Realty Finance Corporation
Available-for-sale securities
Carrying Value / Estimated Fair Value	$ 800,000			$ 800,000		500,000
Number of shares of common stock purchased | shares	2,939,465			2,939,465
Available-for-sale Securities | Commercial mortgage-backed security (CMBS)
Available-for-sale securities
Face Value						2,100,000
Amortized Cost						2,100,000
Cumulative Unrealized (Loss)						(100,000)
Carrying Value / Estimated Fair Value	$ 2,000,000			$ 2,000,000		2,000,000
Proceeds from sale of securities	2,100,000
Reverse of unrealized loss from accumulated other comprehensive loss	$ 100,000
Weighted average yield (as a percent)	1.19%			1.04%
Available-for-sale Securities | Residential mortgage-backed security (RMBS)
Available-for-sale securities
Cumulative Unrealized Gain			400,000
Carrying Value / Estimated Fair Value			33,400,000
Proceeds from sale of securities			33,900,000
Gain on sale of securities			$ 500,000
Number of securities | item			2
Investments financed with a repurchase agreement with a financial institution			$ 25,300,000
Weighted average yield (as a percent)		1.15%			2.05%
Available-for-sale Securities | Common Stock
Available-for-sale securities
Amortized Cost	$ 58,789			$ 58,789		58,789
Cumulative Unrealized Gain	764,261			764,261		440,920
Carrying Value / Estimated Fair Value	$ 823,050			$ 823,050		$ 499,709

Investments in Equity Affilia44

Investments in Equity Affiliates (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investment in Equity Affiliates
Investment in Equity Affiliates	$ 24,368,379	$ 4,869,066
UPB of Loans to Equity Affiliates	40,081,666
Arbor Residential Investor LLC
Investment in Equity Affiliates
Investment in Equity Affiliates	19,457,171
West Shore Cafe
Investment in Equity Affiliates
Investment in Equity Affiliates	1,915,565	1,872,661
UPB of Loans to Equity Affiliates	1,687,500
Lightstone Value Plus REIT L.P
Investment in Equity Affiliates
Investment in Equity Affiliates	1,894,727	1,894,727
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	425,000
East River
Investment in Equity Affiliates
Investment in Equity Affiliates	97,816	98,578
UPB of Loans to Equity Affiliates	4,994,166
Lexford Portfolio
Investment in Equity Affiliates
Investment in Equity Affiliates	100	$ 100
UPB of Loans to Equity Affiliates	$ 33,400,000

Investments in Equity Affilia45

Investments in Equity Affiliates (Details 2) - USD ($)	1 Months Ended		3 Months Ended			6 Months Ended
	Jul. 31, 2014	May. 31, 2014	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Investment in Equity Affiliates
Income from equity affiliates			$ 1,534,025		$ 40,493	$ 4,629,938	$ 80,541
Investments in equity affiliates			24,368,379			24,368,379		$ 4,869,066
Mortgage Loans on Real Estate, Carrying Amount of Mortgages			1,595,706,784			1,595,706,784		1,587,429,498
Bridge Loans
Investment in Equity Affiliates
Mortgage Loans on Real Estate, Carrying Amount of Mortgages			1,346,226,583			1,346,226,583		1,273,439,238
Mezzanine Loans
Investment in Equity Affiliates
Mortgage Loans on Real Estate, Carrying Amount of Mortgages			61,952,792			$ 61,952,792		$ 76,392,650
Arbor Residential Investor LLC
Investment in Equity Affiliates
Equity investment				$ 100,000
Indirect ownership percentage				22.50%		20.00%
Income from equity affiliates			1,500,000			$ 4,600,000
Investments in equity affiliates			19,457,171			19,457,171
Arbor Residential Investor LLC | ACM
Investment in Equity Affiliates
Percentage of ownership interest of related party in the entity				50.00%
Promote (as a percent)				25.00%
Return on investment (as a percent)				10.00%
Arbor Residential Investor LLC | Non-qualified Residential Mortgages
Investment in Equity Affiliates
Equity investment				$ 1,700,000
Ownership percentage				50.00%
Arbor Residential Investor LLC | Non-qualified Residential Mortgages | ACM
Investment in Equity Affiliates
Percentage of ownership interest of related party in the entity				100.00%
Arbor Residential Investor LLC | Additional mortgage purchases
Investment in Equity Affiliates
Equity investment			1,700,000	$ 1,900,000		1,700,000
Arbor Residential Investor LLC | Non Qualified and Additional Residential Mortgages
Investment in Equity Affiliates
Equity investment			5,300,000			5,300,000
Income from equity affiliates			$ 100,000			$ 100,000
930 Flushing & 80 Evergreen
Investment in Equity Affiliates
Proceeds from sale of properties		$ 7,900,000
Debt repaid	$ 22,900,000
Investments in equity affiliates		$ 100,000

Real Estate Owned and Held-Fo46

Real Estate Owned and Held-For-Sale (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2015USD ($)item	Mar. 31, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Dec. 31, 2014USD ($)item
Real Estate owned
Real estate owned, net	$ 71,888,049			$ 71,888,049		$ 84,925,641
First lien mortgage - real estate owned	27,155,000			27,155,000		21,865,136
Restricted cash due to escrow requirement	76,252,399			76,252,399		218,100,529
Provision for Loan and Lease Losses Gross	1,110,629		$ 3,950,000	2,110,629	$ 4,950,000
Real Estate Held-For-Sale
Property classified from real estate owned to real estate held-for-sale				11,241,531
Gain on sale of real estate held-for-sale				3,984,364
Real Estate owned
Real Estate owned
Less: accumulated depreciation and amortization	(19,662,186)			(19,662,186)		(20,075,614)
Real estate owned, net	71,888,049			71,888,049		84,925,641
Restricted cash due to escrow requirement	1,100,000			1,100,000		1,700,000
Real Estate owned | Multifamily
Real Estate owned
Less: accumulated depreciation and amortization	(8,420,932)			(8,420,932)		(7,414,267)
Real estate owned, net	$ 29,040,886			$ 29,040,886		$ 29,374,446
Number of properties | item	3			3		4
First lien mortgage - real estate owned	$ 27,200,000			$ 27,200,000		$ 31,000,000
Weighted average occupancy rate of properties (as a percent)	91.00%			91.00%		90.00%
Real Estate owned | Hotel
Real Estate owned
Less: accumulated depreciation and amortization	$ (11,241,254)			$ (11,241,254)		$ (12,661,347)
Real estate owned, net	$ 42,847,163			$ 42,847,163		$ 55,551,195
Number of properties | item	4			4		5
Weighted average occupancy rate of properties (as a percent)	55.00%		58.00%	55.00%	58.00%
Amount of weighted average daily rate of properties				$ 96	$ 91
Amount of weighted average daily revenue of properties				53	$ 53
Real Estate owned | Land
Real Estate owned
Real estate owned, gross	$ 12,632,495			12,632,495		$ 14,932,495
Real Estate owned | Land | Multifamily
Real Estate owned
Real estate owned, gross	5,538,844			5,538,844		5,538,844
Real Estate owned | Land | Hotel
Real Estate owned
Real estate owned, gross	7,093,651			7,093,651		9,393,651
Real Estate owned | Building and intangible assets
Real Estate owned
Real estate owned, gross	78,917,740			78,917,740		90,068,760
Real Estate owned | Building and intangible assets | Multifamily
Real Estate owned
Real estate owned, gross	31,922,974			31,922,974		31,249,869
Real Estate owned | Building and intangible assets | Hotel
Real Estate owned
Real estate owned, gross	46,994,766			$ 46,994,766		$ 58,818,891
Real Estate held for sale
Real Estate Held-For-Sale
Number of properties sold | item					0
Real Estate held for sale | Multifamily and Hotel
Real Estate Held-For-Sale
Proceeds from sale of properties		$ 18,800,000
Gain on sale of property		$ 4,000,000
Real Estate held for sale | Hotel
Real Estate Held-For-Sale
Property classified from real estate owned to real estate held-for-sale	$ 11,200,000

Real Estate Owned and Held-Fo47

Real Estate Owned and Held-For-Sale (Detail 2) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Expenses:
Depreciation	$ 1,447,642	$ 2,158,353	$ 2,886,319	$ 3,970,036
Net income	12,387,070	13,354,522	29,285,969	20,820,213
Real Estate held for sale
Revenue:
Property operating income	1,367,641	2,297,277	3,349,979	4,932,057
Expenses:
Property operating expense	1,016,112	1,747,434	2,323,404	3,512,305
Depreciation	212,020	440,710	436,326	873,168
Net income	$ 139,509	$ 109,133	$ 590,249	$ 546,584

Debt Obligations (Details)

Debt Obligations (Details) - Real Estate [Domain]	1 Months Ended			4 Months Ended	5 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)item	May. 31, 2015	Mar. 31, 2015USD ($)	Apr. 30, 2015	Jun. 30, 2015USD ($)item	Jun. 30, 2015USD ($)item	Dec. 31, 2015USD ($)	Feb. 28, 2015USD ($)	Jan. 31, 2015USD ($)	Dec. 31, 2014USD ($)item
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 322,737,195				$ 322,737,195	$ 322,737,195				$ 180,386,200
Collateral Cash, Restricted Cash	$ 76,252,399				76,252,399	$ 76,252,399				218,100,529
Past due days, full repayment of a advance required						60 days
Maximum
Debt Obligations
Warehousing period						24 months
Healthcare related loans | Minimum | LIBOR
Debt Obligations
Variable rate, spread (as a percent)	2.25%
Healthcare related loans | Maximum | LIBOR
Debt Obligations
Variable rate, spread (as a percent)	2.50%
Credit facilities and repurchase agreements
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 322,737,195				322,737,195	$ 322,737,195				180,386,200
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 451,453,538				$ 451,453,538	$ 451,453,538				$ 232,015,236
Weighted Average Note Rate (as a percent)	2.61%				2.61%	2.61%				2.84%
Weighted average note rate including certain fees and costs (as a percent)	2.87%				2.87%	2.87%				3.06%
Number of interest rate swaps | item	0				0	0				0
$150 million warehouse repurchase facility
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 111,680,600				$ 111,680,600	$ 111,680,600
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 172,521,052				$ 172,521,052	$ 172,521,052
Weighted Average Note Rate (as a percent)	2.43%				2.43%	2.43%
Committed line									$ 150,000,000
Extension of maturity date (in years)						1 year
$150 million warehouse repurchase facility | Subsequent event
Debt Obligations
Committed line							$ 175,000,000
$150 million warehouse repurchase facility | Senior mortgage loans
Debt Obligations
Variable rate, spread (as a percent)						2.125%
Variable interest rate, description						LIBOR
$150 million warehouse repurchase facility | Junior mortgage loans
Debt Obligations
Variable rate, spread (as a percent)						3.50%
Variable interest rate, description						LIBOR
$100 million warehousing credit facility
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 58,643,095				$ 58,643,095	$ 58,643,095				$ 92,520,637
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 87,617,486				$ 87,617,486	$ 87,617,486				$ 128,593,000
Weighted Average Note Rate (as a percent)	2.37%				2.37%	2.37%				2.45%
Committed line	$ 100,000,000				$ 100,000,000	$ 100,000,000
Variable rate, spread (as a percent)		2.15%		2.25%
Collateral Cash, Restricted Cash	50,000,000				50,000,000	$ 50,000,000
Extension of maturity date (in years)		1 year
$100 million warehousing credit facility | Maximum
Debt Obligations
Advance rate (as a percent)						75.00%
$75 million warehousing credit facility - one
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	68,491,000				68,491,000	$ 68,491,000				$ 42,975,000
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 95,390,000				$ 95,390,000	$ 95,390,000				$ 58,000,000
Weighted Average Note Rate (as a percent)	2.40%				2.40%	2.40%				2.45%
Committed line	$ 75,000,000				$ 75,000,000	$ 75,000,000
Variable rate, spread (as a percent)						2.25%
Variable interest rate, description						LIBOR
Advance rate (as a percent)						75.00%
Warehouse credit facility, sublimit	$ 25,000,000				25,000,000	$ 25,000,000
$75 million warehousing credit facility - one | LIBOR
Debt Obligations
Variable rate, spread (as a percent)	2.125%
$75 million warehousing credit facility - two
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 48,802,500				48,802,500	48,802,500				$ 29,890,563
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 70,725,000				$ 70,725,000	$ 70,725,000				$ 45,422,236
Weighted Average Note Rate (as a percent)	2.22%				2.22%	2.22%				2.20%
Committed line	$ 75,000,000		$ 60,000,000		$ 75,000,000	$ 75,000,000
Variable rate, spread (as a percent)				2.00%
$75 million warehousing credit facility - two | Minimum
Debt Obligations
Advance rate (as a percent)						70.00%
$75 million warehousing credit facility - two | Maximum
Debt Obligations
Advance rate (as a percent)						75.00%
$25 million term credit facility
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	20,120,000				20,120,000	$ 20,120,000
Collateral Carrying Value, Total credit facilities and repurchase agreements	$ 25,200,000				$ 25,200,000	$ 25,200,000
Weighted Average Note Rate (as a percent)	2.22%				2.22%	2.22%
Committed line								$ 25,000,000
Variable rate, spread (as a percent)					2.00%
$25 million term credit facility | LIBOR
Debt Obligations
Variable interest rate, description					LIBOR
$15 million term credit facility
Debt Obligations
Debt Carrying Value, Total credit facilities and repurchase agreements	$ 15,000,000				$ 15,000,000	$ 15,000,000				$ 15,000,000
Weighted Average Note Rate (as a percent)	7.60%				7.60%	7.60%				7.50%
Debt, Face Value	$ 15,000,000				$ 15,000,000	$ 15,000,000
Fixed interest rate (as a percent)	7.50%				7.50%	7.50%
$87 million warehouse repurchase facility
Debt Obligations
Committed line			$ 87,000,000
Variable rate, spread (as a percent)			2.50%
Variable interest rate, description			LIBOR floor of .25%

Debt Obligations (Details 2)

Debt Obligations (Details 2)	1 Months Ended	3 Months Ended	6 Months Ended
	Feb. 28, 2015USD ($)item	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Debt Obligations
Debt, Carrying Value			$ 79,262,601	$ 331,395,126
Collateral Cash, Restricted Cash			76,252,399	218,100,529
Collateralized loan obligations
Debt Obligations
Debt, Face Value			500,250,000	458,250,000
Debt, Carrying Value			500,250,000	458,250,000
Collateral Loans, Unpaid Principal			623,494,424	567,743,490
Collateral Loans, Carrying Value			621,169,275	565,590,490
Collateral Cash, Restricted Cash			$ 47,061,855	$ 66,530,102
Weighted average note rate (as a percent)			2.55%	2.59%
Weighted average note rate including certain fees and costs (as a percent)			3.12%	3.14%
CLO II
Debt Obligations
Debt, Face Value				$ 177,000,000
Debt, Carrying Value				177,000,000
Collateral Loans, Unpaid Principal				252,353,210
Collateral Loans, Carrying Value				251,658,406
Collateral Cash, Restricted Cash				7,284,919
Number of investment grade tranches issued | item			2
Variable interest rate, description			three-month LIBOR
Weighted average note rate (as a percent)			2.56%
Debt instrument redemption value		$ 177,000,000
Deferred fees expensed as interest expense		$ 1,500,000
CLO III
Debt Obligations
Debt, Face Value			$ 281,250,000	281,250,000
Debt, Carrying Value			281,250,000	281,250,000
Collateral Loans, Unpaid Principal			329,677,445	315,390,280
Collateral Loans, Carrying Value			328,347,258	313,932,084
Collateral Cash, Restricted Cash			$ 40,878,834	$ 59,245,183
Number of investment grade tranches issued | item			3
Variable interest rate, description			three-month LIBOR
Weighted average note rate (as a percent)			2.62%	2.60%
CLO IV
Debt Obligations
Debt, Face Value			$ 219,000,000
Debt, Carrying Value	$ 219,000,000		219,000,000
Collateral Loans, Unpaid Principal			293,816,979
Collateral Loans, Carrying Value	$ 250,000,000		292,822,017
Collateral Cash, Restricted Cash			$ 6,183,021
Number of investment grade tranches issued | item	3		3
Number of newly-formed wholly-owned subsidiaries | item	2
Variable interest rate, description	one-month LIBOR		three-month LIBOR
Weighted average note rate (as a percent)	2.24%		2.47%
Replacement period	2 years 6 months
Number of classes of secured floating rate notes | item	3
Notional amount of equity interest retained	$ 81,000,000
Weighted average note rate including certain fees and costs (as a percent)	2.96%
Proceeds from additional loan obligations	$ 50,000,000
Period of additional loan obligations	120 days
Class A senior secured floating rate notes
Debt Obligations
Debt, Face Value	$ 165,800,000
Class B secured floating rate notes
Debt Obligations
Debt, Face Value	24,800,000
Class C secured floating rate notes
Debt Obligations
Debt, Face Value	$ 28,500,000

Debt Obligations (Details 3)

Debt Obligations (Details 3)	6 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item	Dec. 31, 2010USD ($)
Debt Obligations
Debt, Carrying Value	$ 79,262,601	$ 331,395,126
Collateral Cash, Restricted Cash	$ 76,252,399	218,100,529
Collateralized debt obligations
Debt Obligations
Debt, Face Value		312,071,055	$ 42,800,000
Debt, Carrying Value		331,395,126
Collateral Loans, Unpaid Principal		618,184,291
Collateral Loans, Carrying Value		489,742,125
Collateral Cash, Restricted Cash		139,416,831
Collateral-At-Risk		$ 433,880,132
Weighted average note rate (as a percent)	1.42%	3.13%
Weighted average note rate excluding the swap effect (as a percent)	1.00%	1.07%
Weighted average note rate including certain fees and costs (as a percent)	1.93%	3.55%
CDO I debt
Debt Obligations
Debt, Face Value		$ 69,972,159
Debt, Carrying Value		75,402,789
Collateral Loans, Unpaid Principal		222,903,486
Collateral Loans, Carrying Value		174,460,160
Collateral Cash, Restricted Cash		5,232,226
Collateral-At-Risk		$ 180,691,292
Number of investment grade tranches issued | item		4
Variable interest rate, description		three-month LIBOR
Weighted average note rate (as a percent)		3.23%
CDO II debt
Debt Obligations
Debt, Face Value		$ 97,906,092
Debt, Carrying Value		103,484,624
Collateral Loans, Unpaid Principal		192,522,685
Collateral Loans, Carrying Value		143,824,571
Collateral Cash, Restricted Cash		69,412,808
Collateral-At-Risk		$ 106,139,494
Number of investment grade tranches issued | item		9
Variable interest rate, description		three-month LIBOR
Weighted average note rate (as a percent)		6.22%
CDO III debt
Debt Obligations
Debt, Face Value	$ 71,099,881	$ 144,192,804
Debt, Carrying Value	79,262,601	152,507,713
Collateral Loans, Unpaid Principal	172,349,012	202,758,120
Collateral Loans, Carrying Value	141,601,623	171,457,394
Collateral Cash, Restricted Cash	22,087,981	64,771,797
Collateral-At-Risk	$ 127,683,921	$ 147,049,346
Number of investment grade tranches issued | item	10
Variable interest rate, description	three-month LIBOR
Weighted average note rate (as a percent)	1.42%	0.98%
Revolving note class
Debt Obligations
Revolving note amount		$ 100,000,000

Debt Obligations (Details 4)

Debt Obligations (Details 4) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Jun. 30, 2015	Dec. 31, 2010	Jul. 31, 2015	Jan. 31, 2015	Dec. 31, 2014
Debt Obligations
Gain on Acceleration of Deferred Income			$ 11,009,162
Loss on termination of swaps			$ 4,289,450
Collateralized debt obligations
Debt Obligations
Debt instrument redemption value						$ 167,900,000
Gain		$ 8,200,000
Face amount of debt instrument re-issued				$ 42,800,000			$ 312,071,055
Additional debt				65,200,000
Portion of the entity's bonds that were exchanged				42,300,000
Estimated interest due on reissued bonds		11,000,000		22,900,000
Collateralized debt obligations | Forecast
Debt Obligations
Gain on Acceleration of Deferred Income	$ 8,200,000
Other costs related to the unwind of CDO	$ (500,000)
$150 million warehouse repurchase facility
Debt Obligations
Committed line						$ 150,000,000
Cash equity generated		30,000,000
Deferred fees expensed as interest expense		500,000
Loss on terminated derivative		$ 4,300,000
Junior subordinated notes
Debt Obligations
Amount of retired debt instrument				$ 114,100,000
Subsequent event | Collateralized debt obligations
Debt Obligations
Debt instrument redemption value					$ 71,100,000

Debt Obligations (Details 5)

Debt Obligations (Details 5) - Senior Unsecured Notes - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2015
Debt Obligations
Face amount	$ 90
Interest rate (as a percent)	7.375%
Net proceeds	$ 85.4
Weighted average note rate (as a percent)	8.06%	8.11%
Over-Allotment Option
Debt Obligations
Face amount	$ 7.8
Net proceeds	$ 7.4

Debt Obligations (Details 6)

Debt Obligations (Details 6) - Range [Domain] - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2010	Dec. 31, 2014
Debt Obligations
Debt Carrying Value	$ 160,108,568		$ 159,833,260
Junior subordinated notes
Debt Obligations
Debt Carrying Value	160,100,000		159,800,000
Deferred amount Due at maturity	$ 15,700,000		$ 16,000,000
Variable interest rate, description	three-month LIBOR
Nonredeemable period from issue date (in years)	2 years
Weighted average note rate (as a percent)	3.05%		3.01%
Weighted average note rate including certain fees and costs (as a percent)	3.21%		3.18%
Amount of retired debt instrument		$ 114,100,000

Debt Obligations (Details 7)

Debt Obligations (Details 7) - Mortgage Loans on Real Estate, Loan Category [Domain]	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item
Notes payable
Debt Obligations
Debt Carrying Value	$ 2,300,000	$ 1,300,000
Collateral Carrying Value	$ 2,300,000	$ 1,300,000
Weighted average note rate (as a percent)	6.61%	6.61%
Number of interest rate swaps | item	0	0
Junior loan participation, secured by our 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%
Debt Obligations
Debt Carrying Value	$ 1,300,000	$ 1,300,000
Collateral Carrying Value	1,300,000	1,300,000
Principal balance	$ 1,300,000	$ 1,300,000
Interest rate (as a percent)	9.57%	9.57%
Junior loan participation, secured by our interest in a first mortgage loan with a principal balance of $28.8 million, expiration January 2016, interest is based on a portion of the interest received from the loan which has a fixed rate of 15.0%
Debt Obligations
Debt Carrying Value	$ 1,000,000
Collateral Carrying Value	1,000,000
Principal balance	$ 28,800,000
Weighted average note rate (as a percent)	15.00%

Debt Obligations (Details 8)

Debt Obligations (Details 8)	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2015USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)item
Debt Obligations
Reduction in mortgage note payable		$ 30,984,357	$ 212,367
Number of loans | item		146		139
Mortgage note payable - real estate owned		$ 27,155,000		$ 21,865,136
Mortgage note payable - real estate held-for-sale				9,119,221
Mortgage Notes Payable - Real Estate Owned and Held-For-Sale | First mortgage | Multifamily
Debt Obligations
Reduction in mortgage note payable	$ 10,300,000
Mortgage note paid - real estate held-for-sale	$ 20,700,000
Number of loans | item	2
Debt, Face Value	$ 27,200,000
Mortgage note payable - real estate owned		$ 24,700,000		$ 31,000,000
Variable interest rate, description				one-month LIBOR
Variable rate, spread (as a percent)				1.23%
Fixed interest rate (as a percent)		3.00%
Mortgage Notes Payable - Real Estate Owned and Held-For-Sale | Unsecured mortgage | Multifamily
Debt Obligations
Debt, Face Value		$ 2,500,000
Variable interest rate, description		one-month LIBOR
Variable rate, spread (as a percent)		2.75%

Debt Obligations (Details 9)

Debt Obligations (Details 9) - USD ($)	1 Months Ended					6 Months Ended
	Jul. 31, 2015	Apr. 30, 2015	Jan. 31, 2015	Oct. 31, 2014	Jul. 31, 2014	Jun. 30, 2015
Debt Covenants
Minimum liquidity requirement						$ 20,000,000
Minimum net worth requirement one						150,000,000
Minimum net worth requirement two						300,000,000
Maximum total liabilities less subordinated debt requirement						2,000,000,000
CDO III debt
Debt Covenants
Current overcollateralization ratio for cash flow triggers (as a percent)		115.97%	111.34%	110.65%	109.20%
CLO III
Debt Covenants
Current overcollateralization ratio for cash flow triggers (as a percent)	133.33%	133.33%	133.33%	133.33%	133.33%
CLO IV
Debt Covenants
Current overcollateralization ratio for cash flow triggers (as a percent)	136.99%	136.99%
Junior subordinated notes
Debt Covenants
Amount payable on default of senior debt						$ 0
Subsequent event | CLO III
Debt Covenants
Current overcollateralization ratio for cash flow triggers (as a percent)	133.33%
Limit overcollateralization ratio for cash flow triggers (as a percent)	132.33%
Current interest coverage ratio for cash flow triggers (as a percent)	266.20%
Limit interest coverage ratio for cash flow triggers (as a percent)	120.00%
Subsequent event | CLO IV
Debt Covenants
Current overcollateralization ratio for cash flow triggers (as a percent)	136.99%
Limit overcollateralization ratio for cash flow triggers (as a percent)	135.99%
Current interest coverage ratio for cash flow triggers (as a percent)	365.63%
Limit interest coverage ratio for cash flow triggers (as a percent)	120.00%

Derivative Financial Instrume57

Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Dec. 31, 2014USD ($)item	Mar. 31, 2014
Non-Qualifying | Basis Swaps
Derivative Financial Instruments
Count | item					1
Notional Value, classified in Other Assets	$ 3,000		$ 3,000		$ 3,000
Fair Value, classified in Other Assets					$ 2
Decrease in notional value				$ 8,600
Non-Qualifying | Basis Swaps | Maximum
Derivative Financial Instruments
Fair Value, classified in Other Assets	100		100
Change in fair value	(100)	$ (100)	(100)	(100)
Non-Qualifying | LIBOR Caps
Derivative Financial Instruments
Count | item					1
Notional Value, classified in Other Assets					$ 71,701
Notional value of matured instruments			71,700
Cap rate (as a percent)						6.00%
Non-Qualifying | LIBOR Caps | Maximum
Derivative Financial Instruments
Change in fair value	$ (100)	$ (100)	$ (100)	$ (100)
Qualifying | LIBOR Caps
Derivative Financial Instruments
Count | item	1		1
Notional Value, classified in Other Assets	$ 43,500		$ 43,500
Fair Value, classified in Other Assets	$ 15		$ 15
Cap rate (as a percent)	2.00%		2.00%
Qualifying | Interest Rate Swaps
Derivative Financial Instruments
Count | item	6		6		12
Notional Value, classified in Other Liabilities	$ 115,721		$ 115,721		$ 250,321
Fair Value, classified in Other Liabilities	(7,546)		(7,546)		$ (13,908)
Number of swaps matured | item		2		2
Notional value of matured instruments				$ 32,000
Interest expense expected to be reclassified from qualifying cash flow hedges over the next twelve months	$ (5,600)		$ (5,600)

Derivative Financial Instrume58

Derivative Financial Instruments (Details 2) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)item	Jul. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2014
Derivative Financial Instruments
Cumulative amount of other comprehensive loss related to net unrealized losses on derivatives designated as qualifying hedges	$ (8,400)		$ (8,400)			$ (15,000)
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	(7,500)		(7,500)			(13,900)
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	(1,000)		(1,000)			(1,200)
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	100		100			100
Fair value of derivatives in a net liability position	(7,200)		(7,200)			(9,200)
Collateral posted	7,700		7,700			9,600
Residential mortgage-backed security (RMBS)
Derivative Financial Instruments
Change in fair value				$ (100)
Number of investments sold | item				8
Aggregate carrying value of investments sold		$ 65,700		$ 65,700
Proceeds from sale of investments				65,800
Net gain on sale of investments				100
Amount of repurchase agreement for financing the purchase of investments				55,400
Net interest income				300
Interest Rate Swaps | Subsequent event
Derivative Financial Instruments
Aggregate notional value					$ 7,900
Aggregate fair value					$ 400
Non-Qualifying | Basis Swaps
Derivative Financial Instruments
Fair Value, classified in Other Assets						2
Non-Qualifying | Basis Swaps | Interest Expense
Derivative Financial Instruments
Change in fair value			(3)
Non-Qualifying | Basis Swaps | Maximum
Derivative Financial Instruments
Change in fair value	(100)	(100)	(100)	(100)
Fair Value, classified in Other Assets	100		100
Non-Qualifying | LIBOR Caps
Derivative Financial Instruments
Cap rate (as a percent)							6.00%
Non-Qualifying | LIBOR Caps | Maximum
Derivative Financial Instruments
Change in fair value	(100)	(100)	(100)	(100)
Non-Qualifying | Forward Contracts | Other Income
Derivative Financial Instruments
Change in fair value				(45)
Qualifying | Interest Rate Swaps
Derivative Financial Instruments
Amount of Loss Recognized in Other Comprehensive Loss (Effective Portion)			907	1,078
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Interest Expense (Effective Portion)			(3,242)	(6,555)
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Loss on Termination of Swaps (Ineffective Portion)			(4,286)
Qualifying | LIBOR Caps
Derivative Financial Instruments
Fair Value, classified in Other Assets	$ 15		$ 15
Cap rate (as a percent)	2.00%		2.00%
Terminated hedges | Interest Rate Swaps
Derivative Financial Instruments
Net deferred loss in accumulated other comprehensive loss	$ 900		$ 900			$ 1,100
Additional interest expense related to the amortization of the loss	200	200	300	300
Reduction to interest expense related to the accretion of the net gains			100	$ 100
Amount of net deferred loss expected to be recorded to interest expense over the next twelve months	500		500
Terminated hedges | Interest Rate Swaps | Maximum
Derivative Financial Instruments
Reduction to interest expense related to the accretion of the net gains	100	$ 100
Terminated hedges | Interest Rate Swaps | Collateralized debt obligations
Derivative Financial Instruments
Aggregate notional value	134,600		134,600
Aggregate fair value	$ (4,300)		$ (4,300)

Variable Interest Entities (Det

Variable Interest Entities (Details)	6 Months Ended
	Jun. 30, 2015USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Variable Interest Entities
Loans to VIEs	$ 1,595,706,784		$ 1,587,429,498
Loan loss reserves related to VIEs	117,563,544	$ 116,470,000	115,487,320	$ 115,059,988	$ 116,743,412	$ 122,277,411
Non-performing loans
Variable Interest Entities
Loans to VIEs	$ 6,500,000		$ 7,000,000
Unconsolidated VIEs
Variable Interest Entities
Number of VIEs where the reporting entity is not VIE's primary beneficiary | item	24
Carrying Amount	$ 420,733,898
Exposure to real estate debt	1,900,000,000
Loans to VIEs	189,200,000
Loan loss reserves related to VIEs	113,200,000
Unconsolidated VIEs | Non-performing loans
Variable Interest Entities
Loans to VIEs	40,300,000
Unconsolidated VIEs | Maximum
Variable Interest Entities
Exposure to loss	420,733,898
Unconsolidated VIEs | Loans
Variable Interest Entities
Carrying Amount	390,116,524
Unconsolidated VIEs | Loans | Maximum
Variable Interest Entities
Exposure to loss	390,116,524
Unconsolidated VIEs | Loans and equity investments
Variable Interest Entities
Carrying Amount	30,039,374
Unconsolidated VIEs | Loans and equity investments | Maximum
Variable Interest Entities
Exposure to loss	30,039,374
Unconsolidated VIEs | Junior subordinated notes
Variable Interest Entities
Carrying Amount	578,000
Unconsolidated VIEs | Junior subordinated notes | Maximum
Variable Interest Entities
Exposure to loss	$ 578,000

Fair Value (Details)

Fair Value (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Loans and investments, net	$ 1,468,566,061	$ 1,459,475,650
Available-for-sale securities, at fair value	823,050	2,499,709
Financial liabilities:
Credit facilities and repurchase agreements	322,737,195	180,386,200
Collateralized loan obligations	500,250,000	458,250,000
Collateralized debt obligations	79,262,601	331,395,126
Senior unsecured notes	97,860,025	97,860,025
Junior subordinated notes	160,108,568	159,833,260
Notes payable	2,300,000	1,300,000
Carrying Value
Financial assets:
Loans and investments, net	1,468,566,061	1,459,475,650
Available-for-sale securities, at fair value	823,050	2,499,709
Derivative financial instruments	14,807	1,995
Financial liabilities:
Credit facilities and repurchase agreements	322,737,195	180,386,200
Collateralized loan obligations	500,250,000	458,250,000
Collateralized debt obligations	79,262,601	331,395,126
Senior unsecured notes	97,860,025	97,860,025
Junior subordinated notes	160,108,568	159,833,260
Notes payable	2,300,000	1,300,000
Mortgage note payable - real estate owned and held-for-sale	27,155,000	30,984,357
Derivative financial instruments	7,545,725	13,908,163
Fair Value
Financial assets:
Loans and investments, net	1,506,763,960	1,478,778,674
Available-for-sale securities, at fair value	823,050	2,499,709
Derivative financial instruments	14,807	1,995
Financial liabilities:
Credit facilities and repurchase agreements	322,221,058	179,964,341
Collateralized loan obligations	500,535,000	459,673,750
Collateralized debt obligations	41,257,763	240,541,397
Senior unsecured notes	96,881,425	95,902,825
Junior subordinated notes	103,350,481	102,600,561
Notes payable	2,282,603	1,292,461
Mortgage note payable - real estate owned and held-for-sale	27,123,440	29,962,066
Derivative financial instruments	$ 7,545,725	$ 13,908,163

Fair Value (Details 2)

Fair Value (Details 2)	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Financial assets:
Available-for-sale securities, at fair value	$ 823,050	$ 2,499,709
Allowance for Loan losses	$ 117,563,544	115,487,320
Number of impaired loans | item	10
Aggregate carrying value, before reserves	$ 224,385,928	$ 221,602,399
Recurring basis | Carrying Value
Financial assets:
Available-for-sale securities, at fair value	823,050
Derivative financial instruments	14,807
Financial liabilities:
Derivative financial instruments	7,545,725
Recurring basis | Fair Value
Financial assets:
Available-for-sale securities, at fair value	823,050
Derivative financial instruments	14,807
Financial liabilities:
Derivative financial instruments	7,545,725
Recurring basis | Level 1
Financial assets:
Available-for-sale securities, at fair value	823,050
Recurring basis | Level 2
Financial assets:
Derivative financial instruments	14,807
Financial liabilities:
Derivative financial instruments	7,545,725
Nonrecurring basis | Carrying Value
Financial assets:
Impaired loans, net	106,822,384
Nonrecurring basis | Fair Value
Financial assets:
Impaired loans, net	106,822,384
Nonrecurring basis | Level 3
Financial assets:
Impaired loans, net	$ 106,822,384

Fair Value (Details 3)

Fair Value (Details 3) - Recurring basis - Level 3	6 Months Ended
	Jun. 30, 2015USD ($)
Available-for-sale Securities
Financial assets
Balance at the beginning of the period	$ 2,000,000
Adjustment to fair value:
Changes in fair value	100,000
Commercial mortgage-backed security (CMBS)
Adjustment to fair value:
Payoff	$ (2,100,000)

Fair Value (Details 4)

Fair Value (Details 4) - Jun. 30, 2015 - Level 3 - USD ($)	Total
Multifamily | Direct capitalization analysis and discounted cash flows
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Impaired loans	$ 2,349,965
Discount rate (as a percent)	8.00%
Revenue growth rate (as a percent)	2.00%
Multifamily | Direct capitalization analysis and discounted cash flows | Minimum
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Capitalization rate (as a percent)	6.50%
Multifamily | Direct capitalization analysis and discounted cash flows | Maximum
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Capitalization rate (as a percent)	9.75%
Multifamily | Direct capitalization analysis and discounted cash flows | Weighted average
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Capitalization rate (as a percent)	7.30%
Office | Discounted cash flows
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Impaired loans	$ 6,540,754
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)	10.00%
Capitalization rate (as a percent)	8.25%
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)	11.25%
Capitalization rate (as a percent)	9.25%
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)	10.50%
Capitalization rate (as a percent)	9.01%
Revenue growth rate (as a percent)	2.63%
Land | Discounted cash flows
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Impaired loans	$ 67,142,777
Discount rate (as a percent)	15.00%
Capitalization rate (as a percent)	7.25%
Revenue growth rate (as a percent)	3.00%
Hotel | Discounted cash flows
Quantitative information about Level 3 Fair Value Measurements on a recurring and non-recurring basis
Impaired loans	$ 30,788,888
Discount rate (as a percent)	9.25%
Capitalization rate (as a percent)	7.25%
Revenue growth rate (as a percent)	3.00%

Fair Value (Details 5)

Fair Value (Details 5) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Financial assets:
Loans and investments, net	$ 1,468,566,061	$ 1,459,475,650
Financial liabilities:
Credit facilities	322,737,195	180,386,200
Collateralized loan obligation	500,250,000	458,250,000
Collateralized debt obligations	79,262,601	331,395,126
Senior unsecured notes	97,860,025	97,860,025
Junior subordinated notes	160,108,568	159,833,260
Notes payable	2,300,000	$ 1,300,000
Carrying Value
Financial assets:
Loans and investments, net	1,468,566,061
Financial liabilities:
Credit facilities	322,737,195
Collateralized loan obligation	500,250,000
Collateralized debt obligations	79,262,601
Senior unsecured notes	97,860,025
Junior subordinated notes	160,108,568
Notes payable	2,300,000
Mortgage note payable - real estate owned and held-for-sale	27,155,000
Fair Value
Financial assets:
Loans and investments, net	1,506,763,960
Financial liabilities:
Credit facilities	322,221,058
Collateralized loan obligation	500,535,000
Collateralized debt obligations	41,257,763
Senior unsecured notes	96,881,425
Junior subordinated notes	103,350,481
Notes payable	2,282,603
Mortgage note payable - real estate owned and held-for-sale	27,123,440
Level 1
Financial liabilities:
Senior unsecured notes	96,881,425
Level 3
Financial assets:
Loans and investments, net	1,506,763,960
Financial liabilities:
Credit facilities	322,221,058
Collateralized loan obligation	500,535,000
Collateralized debt obligations	41,257,763
Junior subordinated notes	103,350,481
Notes payable	2,282,603
Mortgage note payable - real estate owned and held-for-sale	$ 27,123,440

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Jun. 30, 2015USD ($)
Contractual Obligations, Payments Due by Period
2,015	$ 122.7
2,016	221.7
2,017	346.3
2,018	228.3
2,019	12.7
Thereafter	273.7
Unfunded commitments related to loans and investments	16
Available amount to fund unfunded commitments	4.4
CDO III debt
Contractual Obligations, Payments Due by Period
2,015	$ 79.3

Commitments and Contingencies66

Commitments and Contingencies (Details 2) $ in Millions	Jun. 28, 2013USD ($)item	Jun. 15, 2011USD ($)item
Arbor ESH II, LLC
Litigation
Investments in the Series A1 Preferred Units of a holding company of Extended Stay, Inc. | $		$ 115
Lawsuits filed by Extended Stay Litigation Trust (the Trust)
Litigation
Number of lawsuits or complaints filed		3
Number of lawsuits filed in United States Bankruptcy Court		2
Number of defendants		73
Number of defendants who are corporate and partnership entities		55
Number of defendants named in a legal action who are individuals		18
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Fiduciary Duty Claims
Litigation
Number of lawsuits or complaints filed		2
Number of defendants		2
Lawsuits filed by Extended Stay Litigation Trust (the Trust) | Motion to amend the lawsuits
Litigation
Number of defendants who are corporate and partnership entities	16
Number of defendants named in a legal action who are individuals	10
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 ($)

Jul. 29, 2015

Apr. 29, 2015

Feb. 11, 2015

Feb. 02, 2015

May. 31, 2015

Mar. 31, 2015

Feb. 28, 2014

Jun. 30, 2015

Mar. 31, 2015

Jun. 30, 2014

Mar. 31, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Jul. 31, 2015

Preferred Stock

Net proceeds from issuance of preferred stock

$ 22,500,000

Common stock

Proceeds from issuance of shares under public offering

$ 6,800,000

Distributions

Cash dividend declared (in dollars per share)

$ 0.15

$ 0.13

$ 0.28

$ 0.26

Preferred distributions declared and paid

$ 3,776,860

Subsequent event

Common stock

Value of common stock remaining under shelf registration

$ 330,400,000

Aggregate amount of securities for which the entity filed shelf registration statement

$ 500,000,000

Restricted common stock

Deferred Compensation

Total grant date fair value

$ 100,000

Forfeited (in shares)

916

Mr. Ivan Kaufman. | Restricted common stock

Deferred Compensation

Number of fully vested shares issued

74,294

Total grant date fair value

$ 500,000

Vesting percentage

25.00%

Mr. Ivan Kaufman. | Restricted common stock | First Anniversary

Deferred Compensation

Vesting percentage

25.00%

Mr. Ivan Kaufman. | Restricted common stock | Second Anniversary

Deferred Compensation

Vesting percentage

25.00%

Mr. Ivan Kaufman. | Restricted common stock | Third Anniversary

Deferred Compensation

Vesting percentage

25.00%

Mr. Ivan Kaufman. | Performance

Deferred Compensation

Granted (in shares)

445,765

Total grant date fair value

$ 1,200,000

Vesting period

4 years

Mr. Ivan Kaufman. | Employee compensation and benefits | Restricted common stock

Deferred Compensation

Share-based compensation expense

100,000

Mr. Ivan Kaufman. | Employee compensation and benefits | Performance

Deferred Compensation

Share-based compensation expense

100,000

Employees of the company and a related party | Restricted common stock

Deferred Compensation

Number of fully vested shares issued

328,400

Total grant date fair value

$ 2,300,000

Vesting percentage

33.00%

Employees of the company and a related party | Restricted common stock | First Anniversary

Deferred Compensation

Vesting percentage

33.00%

Employees of the company and a related party | Restricted common stock | Second Anniversary

Deferred Compensation

Vesting percentage

33.00%

Employees of the company and a related party | Employee compensation and benefits | Restricted common stock

Deferred Compensation

Share-based compensation expense

400,000

Employees of the company and a related party | Selling and administrative expense | Restricted common stock

Deferred Compensation

Share-based compensation expense

400,000

Employees of the company and a related party | Mr. Ivan Kaufman. | Restricted common stock

Deferred Compensation

Number of fully vested shares issued

105,000

Non-employees | Selling and administrative expense | Restricted common stock

Deferred Compensation

Share-based compensation expense

$ 200,000

$ 100,000

$ 400,000

$ 200,000

Non-employees | ACM | Restricted common stock

Deferred Compensation

Granted (in shares)

154,169

Total grant date fair value

$ 1,100,000

Employees | Restricted common stock

Deferred Compensation

Granted (in shares)

213,157

Total grant date fair value

$ 1,500,000

Employees | Employee compensation and benefits | Restricted common stock

Deferred Compensation

Share-based compensation expense

$ 300,000

400,000

$ 100,000

Employees | Mr. Ivan Kaufman. | Performance

Deferred Compensation

Share-based compensation expense

$ 200,000

Non-management members of the Board of Directors | Common Stock

Deferred Compensation

Number of fully vested shares issued

20,430

Non-management members of the Board of Directors | Selling and administrative expense | Common Stock

Deferred Compensation

Share-based compensation expense

$ 100,000

8.25% Series A preferred stock

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

8.25%

8.25%

8.25%

7.75% Series B preferred stock

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

7.75%

7.75%

7.75%

8.50% Series C preferred stock

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

8.50%

8.50%

8.50%

Preferred Stock | 8.25% Series A preferred stock

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

$ 0.515625

$ 0.515625

Preferred Stock | 8.25% Series A preferred stock | Subsequent event

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

8.25%

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

$ 0.515625

Preferred Stock | 7.75% Series B preferred stock

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

0.48375

0.48375

Preferred Stock | 7.75% Series B preferred stock | Subsequent event

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

7.75%

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

$ 0.484375

Preferred Stock | 8.50% Series C preferred stock

Preferred Stock

Issuance of preferred stock (in shares)

900,000

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

8.50%

Preferred stock, liquidation preference (in dollars per share)

$ 25

Net proceeds from issuance of preferred stock

$ 21,600,000

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

$ 0.53125

$ 0.53125

Preferred Stock | 8.50% Series C preferred stock | Subsequent event

Preferred Stock

Return on the preferred shares issued to third parties by its subsidiary REIT (as a percent)

8.50%

Distributions

Cash dividend declared on redeemable preferred stock (in dollars per share)

$ 0.53125

Common Stock

Common stock

Issuance of common stock (in shares)

1,000,000

Proceeds from issuance of shares under public offering

$ 6,500,000

Number of shares which the entity may issue and sell through JMP

7,500,000

Number of shares available for sale through JMP

6,500,000

6,500,000

Distributions

Cash dividend declared (in dollars per share)

$ 0.13

Common Stock | Subsequent event

Distributions

Cash dividend declared (in dollars per share)

$ 0.15

Common Stock | Non-management members of the Board of Directors

Deferred Compensation

Number of fully vested shares issued

63,000

Common Stock | Non-management members of the Board of Directors | Selling and administrative expense

Deferred Compensation

Share-based compensation expense

$ 400,000

Equity (Details 2)

Equity (Details 2) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Jul. 31, 2014	Dec. 31, 2009	Jun. 30, 2014
Equity
Number of warrants issued		1,000,000
Warrant exercise price		$ 4
Payments for warrants acquired and canceled	$ 2.6
Warrants repurchase price as a discount to closing price of common stock (as a percentage)	5.00%
Common stock closing price (in dollars per share)			$ 6.95

Equity (Details 3)

Equity (Details 3) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Accumulated Other Comprehensive Loss
Net unrealized losses on derivatives designated as cash flow hedges, net of deferred losses on terminated interest swaps	$ 7,500,000		$ 13,900,000
Deferred losses on terminated interest swaps	(900,000)		(1,100,000)
Unrealized gain related to available-for-sale securities	800,000		$ 300,000
Interest Expense
Accumulated Other Comprehensive Loss
Net realized losses on derivatives designated as cash flow hedges	(3,241,500)	$ (6,555,041)
Loss on Termination of Swaps
Accumulated Other Comprehensive Loss
Net realized losses on derivatives designated as cash flow hedges	$ (4,285,995)
Other Income | Residential mortgage-backed security (RMBS)
Accumulated Other Comprehensive Loss
Net realized gain on sale of available-for-sale investments		$ 431,476

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic
Net income attributable to common stockholders	$ 10,498,640	$ 11,466,057	$ 25,509,109	$ 17,340,818
Weighted average number of common shares outstanding	50,955,648	50,267,462	50,751,247	49,804,457
Net income per common share (in dollars per share)	$ 0.21	$ 0.23	$ 0.50	$ 0.35
Diluted
Net income attributable to common stockholders	$ 10,498,640	$ 11,466,057	$ 25,509,109	$ 17,340,818
Weighted average number of common shares outstanding	50,955,648	50,267,462	50,751,247	49,804,457
Dilutive effect of of restricted stock units (in shares)			143,284
Dilutive effect of warrants (in shares)		434,280		425,442
Weighted average number of common shares outstanding	50,955,648	50,701,742	50,894,531	50,229,899
Net income per common share (in dollars per share)	$ 0.21	$ 0.23	$ 0.50	$ 0.35
Mr. Ivan Kaufman. | Performance
Diluted
Vesting period			4 years

Agreements and Transactions w71

Agreements and Transactions with Related Parties (Details) - Equity Award [Domain] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Management Fees:
Incentive	$ 0	$ 0	$ 0	$ 0
Total Management fee	2,675,000	2,500,000	$ 5,350,000	4,950,000
ACM
Agreements and transactions with related parties
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
Management Fees:
Base	2,675,000	2,500,000	$ 5,350,000	4,950,000
Total Management fee	$ 2,675,000	$ 2,500,000	$ 5,350,000	$ 4,950,000

Agreements and Transactions w72

Agreements and Transactions with Related Parties (Details 2) shares in Millions	1 Months Ended						3 Months Ended							6 Months Ended		12 Months Ended
	Apr. 30, 2015USD ($)	Feb. 28, 2015USD ($)	Aug. 31, 2014USD ($)item	Jul. 31, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2011USD ($)	Jun. 30, 2015USD ($)shares	Mar. 31, 2015USD ($)	Sep. 30, 2014USD ($)item	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Sep. 30, 2013USD ($)	Mar. 31, 2012USD ($)	Jun. 30, 2015USD ($)itemshares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Agreements and transactions with related parties
Due from related party							$ 2,499,584							$ 2,499,584		$ 36,515
Due to related party							1,991,665							1,991,665		$ 2,653,333
Interest income recorded							100,000			$ 900,000				200,000	$ 1,700,000
Income from equity affiliates							1,534,025			40,493				$ 4,629,938	80,541
Interest rate (as a percent)														5.65%		5.45%
Investments in equity affiliates							24,368,379							$ 24,368,379		$ 4,869,066
Legal, financial and accounting fees																	$ 1,400,000
Additional preferred equity investment outstanding							$ 1,595,706,784							$ 1,595,706,784		$ 1,587,429,498
Minimum
Agreements and transactions with related parties
Ownership interest allowed under company charter (as a percent)							5.00%							5.00%
Residential Mortgage Banking Company
Agreements and transactions with related parties
Indirect ownership percentage														22.50%
Income from equity affiliates							$ 1,500,000							$ 4,500,000
Mezzanine Loans
Agreements and transactions with related parties
Interest rate (as a percent)														9.44%		9.78%
Additional preferred equity investment outstanding							61,952,792							$ 61,952,792		$ 76,392,650
Preferred equity investments
Agreements and transactions with related parties
Interest rate (as a percent)														6.86%		6.11%
Additional preferred equity investment outstanding							93,270,827							$ 93,270,827		$ 133,505,658
Bridge Loans
Agreements and transactions with related parties
Interest rate (as a percent)														5.51%		5.19%
Additional preferred equity investment outstanding							1,346,226,583							$ 1,346,226,583		$ 1,273,439,238
Bridge Loans | First mortgage
Agreements and transactions with related parties
Additional preferred equity investment outstanding								$ 116,000,000
Maturity date of March 2016 | Bridge Loans
Agreements and transactions with related parties
Interest income recorded							1,200,000			1,200,000				$ 2,400,000	1,400,000
Loan to third party borrower, unpaid principal balance					$ 70,100,000
Interest rate (as a percent)														6.38%
ACM
Agreements and transactions with related parties
Due from related party							2,500,000							$ 2,500,000
Due to related party							$ 2,000,000							2,000,000		2,700,000
Management fees to be remitted														$ 700,000
Number of shares held by related party | shares							5.3							5.3
Percentage of voting power held by related party							10.00%							10.00%
ACM | Maximum
Agreements and transactions with related parties
Due from related party																100,000
ACM | Residential Mortgage Banking Company
Agreements and transactions with related parties
Noncontrolling interest in equity method investment acquired (as a percent)								50.00%
Acquisition purchase price								$ 9,600,000
ACM | Non-qualified Residential Mortgages | Residential Mortgage Banking Company
Agreements and transactions with related parties
Equity investment made														$ 5,300,000
ACM | Maturity date of March 2016 | Bridge Loans
Agreements and transactions with related parties
Amount of bridge loan purchased from related party					$ 15,000,000
Interest rate (as a percent)														7.20%
ACM | Maturity date of June 2014
Agreements and transactions with related parties
Interest income recorded							$ 200,000			$ 200,000				$ 400,000	$ 600,000
Number of mortgage loans secured by property purchased from related party | item														2
Amount of mortgage loan secured by property purchased from related party														$ 22,400,000
Payment of debt											$ 2,300,000
ACM | Maturity date of March 2015 | First mortgage
Agreements and transactions with related parties
Amount of mortgage loan secured by property purchased from related party														$ 14,600,000
Original variable rate basis														LIBOR
Original basis spread (as a percent)										4.80%					4.80%
ACM | Maturity date of April 2015 | Second mortgage
Agreements and transactions with related parties
Amount of mortgage loan secured by property purchased from related party														$ 5,100,000
Original variable rate basis														LIBOR
Original basis spread (as a percent)							4.80%							4.80%
Mr. Ivan Kaufman | Maturity date of February 2018 | Preferred equity investments
Agreements and transactions with related parties
Loan amount retained by related party		$ 23,000,000														$ 18,000,000
Fixed rate of interest (as a percent)		10.00%
Interest income recorded							$ 600,000							$ 1,100,000
Amount of ownership interest of related party in the entity		$ 2,000,000
Mr. Ivan Kaufman | Maturity date of January 2016 | Bridge Loans
Agreements and transactions with related parties
Interest income recorded														1,400,000
Mr. Ivan Kaufman. | Maturity date of August 2015 | Bridge Loans
Agreements and transactions with related parties
Interest income recorded							100,000							$ 100,000
Investments in equity affiliates									$ 100,000
Ownership interest (as a percent)									5.00%
Number of properties owned | item									2
Percentage of ownership interest of related party in the entity									95.00%
Number of bridge loans originated | item			2
Amount of mortgage loan secured by property purchased from related party			$ 5,000,000
Base spread (as a percent)			5.50%
Base rate			one-month LIBOR
Mr. Ivan Kaufman. | Maturity date of January 2016 | Bridge Loans
Agreements and transactions with related parties
Interest income recorded							$ 700,000
Percentage of ownership interest of related party in the entity				24.00%
Amount of mortgage loan secured by property purchased from related party				$ 30,400,000
Base spread (as a percent)				7.90%
Base rate				LIBOR
Kaufman Entities | ACM
Agreements and transactions with related parties
Percentage of outstanding membership interest of related party in another related party							92.00%							92.00%
Lexford Portfolio
Agreements and transactions with related parties
Aggregate outstanding balance of related party debt							$ 806,100,000							$ 806,100,000
Lexford Portfolio | Preferred equity investments
Agreements and transactions with related parties
Noncontrolling interest														44,000
Payment of debt														8,000,000
Loan restructured						$ 67,600,000
Additional preferred equity investment outstanding						25,000,000
Interest held in the additional investment made						10,500,000
Additional investment made by the company along with a consortium of independent outside investors												$ 22,500,000
Equity investment made														$ 100,000
Equity investment, balance						0
Lexford Portfolio | Preferred equity investments | Mr. Fred Weber
Agreements and transactions with related parties
Interest held in the additional investment made						$ 500,000
Lexford Portfolio | Original preferred equity investment
Agreements and transactions with related parties
Fixed rate of interest (as a percent)														2.36%
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%							1.65%
Lexford Portfolio | New preferred equity investment
Agreements and transactions with related parties
Fixed rate of interest (as a percent)														12.00%
Affiliate of Mr. Ivan Kaufman
Agreements and transactions with related parties
Ownership interest (as a percent)							53.90%							53.90%
Contract period with the new entity														7 years 6 months
Fees as a percentage of gross revenues of the underlying properties														4.75%
Affiliate of Mr. Ivan Kaufman | Mr. Fred Weber
Agreements and transactions with related parties
Noncontrolling interest													$ 250,000
Ownership interest (as a percent)							23.50%							23.50%
Certain officers and manager | Maturity date of April 2018 | Bridge Loans
Agreements and transactions with related parties
Interest income recorded	$ 100,000
Percentage of ownership interest of related party in the entity	90.00%
Amount of mortgage loan secured by property purchased from related party	$ 6,300,000
Base spread (as a percent)	4.50%
Interest rate, floor	0.25%