Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Entity Registrant Name | ACRES COMMERCIAL REALTY CORP. | ||
Entity Central Index Key | 0001332551 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,890,045 | ||
Entity Public Float | $ 143,419,028 | ||
Entity File Number | 1-32733 | ||
Entity Tax Identification Number | 20-2287134 | ||
Entity Address, Address Line One | 390 RXR Plaza | ||
Entity Address, City or Town | Uniondale | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11556 | ||
City Area Code | 516 | ||
Local Phone Number | 535-0015 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | MD | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Philadelphia, Pennsylvania | ||
Auditor Firm ID | 248 | ||
Documents Incorporated by Reference | The information required by Part III of this Form 10-K, to the extent not set forth herein or by amendment, is incorporated by reference from the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2021. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | ACR | ||
Security Exchange Name | NYSE | ||
8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | ||
Trading Symbol | ACRPrC | ||
Security Exchange Name | NYSE | ||
7.875% Series D Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 7.875% Series D Cumulative Redeemable Preferred Stock | ||
Trading Symbol | ACRPrD | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Cash and cash equivalents | $ 35,500 | $ 29,355 |
Restricted cash | 248,431 | 38,386 |
Accrued interest receivable | 6,112 | 7,372 |
CRE loans | 1,882,551 | 1,541,992 |
Less: allowance for credit losses | (8,805) | (34,310) |
CRE loans, net | 1,873,746 | 1,507,682 |
Investment securities available-for-sale | 2,080 | |
Principal paydowns receivable | 14,899 | 4,250 |
Loan receivable - related party | 11,575 | 11,875 |
Investments in unconsolidated entities | 1,548 | 1,548 |
Property held for sale | 17,846 | |
Investment in real estate | 59,308 | 33,806 |
Right of use assets | 5,951 | 5,592 |
Intangible assets | 3,877 | 3,294 |
Other assets | 5,482 | 8,783 |
Assets held for sale | 61 | |
Total assets | 2,284,275 | 1,654,084 |
LIABILITIES | ||
Accounts payable and other liabilities | 7,025 | 2,068 |
Management fee payable - related party | 561 | 442 |
Accrued interest payable | 5,937 | 6,036 |
Borrowings | 1,814,424 | 1,304,727 |
Lease liabilities | 3,537 | 3,107 |
Distributions payable | 3,262 | 1,725 |
Accrued tax liability | 1 | 57 |
Liabilities held for sale | 1,333 | 1,540 |
Total liabilities | 1,836,080 | 1,319,702 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $0.001: 41,666,666 and 125,000,000 shares authorized; 9,149,079 and 10,162,289 shares issued and outstanding (including 333,329 and 11,610 unvested restricted shares) | 9 | 10 |
Additional paid-in capital | 1,179,863 | 1,085,941 |
Accumulated other comprehensive loss | (8,127) | (9,978) |
Distributions in excess of earnings | (723,560) | (741,596) |
Total stockholders’ equity | 448,195 | 334,382 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 2,284,275 | 1,654,084 |
8.625% Series C Preferred Stock | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, value | 5 | $ 5 |
7.875% Series D Preferred Stock | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, value | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 41,666,666 | 125,000,000 |
Common stock, shares issued (in shares) | 9,149,079 | 10,162,289 |
Common stock, shares outstanding (in shares) | 9,149,079 | 10,162,289 |
Common stock, shares issued, non-vested restricted shares (in shares) | 333,329 | 11,610 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 248,431 | $ 38,386 |
Accrued interest receivable | 6,112 | 7,372 |
Other assets | 5,482 | 8,783 |
Total assets of consolidated VIEs | 2,284,275 | 1,654,084 |
Accounts payable and other liabilities | 7,025 | 2,068 |
Accrued interest payable | 5,937 | 6,036 |
Borrowings | 1,814,424 | 1,304,727 |
Total liabilities of consolidated VIEs | $ 1,836,080 | $ 1,319,702 |
7.875% Series D Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 6,800,000 | 6,800,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized | 7.875% | 7.875% |
Preferred stock, shares issued (in shares) | 4,607,857 | 0 |
Preferred stock, shares outstanding (in shares) | 4,607,857 | 0 |
8.625% Series C Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized | 8.625% | 8.625% |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
VIE, Primary Beneficiary | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 248,371 | $ 38,353 |
Accrued interest receivable | 3,826 | 5,398 |
CRE loans, pledged as collateral | 1,601,482 | 1,231,184 |
Principal paydowns receivable | 14,899 | 4,250 |
Other assets | 36 | 114 |
Total assets of consolidated VIEs | 1,868,614 | 1,279,299 |
Accounts payable and other liabilities | 315 | 136 |
Accrued interest payable | 997 | 806 |
Borrowings | 1,466,499 | 1,027,929 |
Total liabilities of consolidated VIEs | $ 1,467,811 | $ 1,028,871 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
CRE loans | $ 100,774 | $ 101,303 | $ 118,060 |
Securities | 161 | 6,717 | 26,190 |
Other | 97 | 223 | 636 |
Total interest income | 101,032 | 108,243 | 144,886 |
Interest expense | 61,575 | 58,008 | 83,837 |
Net interest income | 39,457 | 50,235 | 61,049 |
Real estate income | 10,553 | ||
Other revenue | $ 65 | $ 76 | $ 101 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember |
Total revenues | $ 50,075 | $ 50,311 | $ 61,150 |
OPERATING EXPENSES | |||
Management fees - related party | 6,089 | 6,054 | 8,954 |
Equity compensation - related party | 1,722 | 3,136 | 2,212 |
Real estate operating expense | 10,601 | 298 | |
General and administrative | 11,602 | 14,335 | 10,392 |
Depreciation and amortization | 94 | 49 | 47 |
(Reversal of) provision for credit losses, net | (21,262) | 30,815 | 58 |
Total operating expenses | 8,846 | 54,687 | 21,663 |
Net interest and other revenues less operating expenses | 41,229 | (4,376) | 39,487 |
OTHER INCOME (EXPENSE) | |||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | 878 | (186,610) | 4 |
Fair value adjustments on financial assets held for sale | (8,768) | (4,682) | |
Gain on conversion of real estate | 1,570 | ||
Loss on extinguishment of debt | (9,006) | ||
Other income | 822 | 471 | 1,408 |
Total other expense | (7,306) | (193,337) | (3,270) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE TAXES | 33,923 | (197,713) | 36,217 |
Income tax benefit | 0 | 0 | 0 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 33,923 | (197,713) | 36,217 |
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (251) | ||
NET INCOME (LOSS) | 33,923 | (197,713) | 35,966 |
Net income allocated to preferred shares | (15,887) | (10,350) | (10,350) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 18,036 | $ (208,063) | $ 25,616 |
CONTINUING OPERATIONS (in dollars per share) | $ 1.85 | $ (19.33) | $ 2.47 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | ||
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC | 1.85 | (19.33) | 2.45 |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED: | |||
CONTINUING OPERATIONS (in dollars per share) | 1.85 | (19.33) | 2.45 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | ||
TOTAL NET INCOME (LOSS) PER COMMON SHARE - DILUTED | $ 1.85 | $ (19.33) | $ 2.43 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 9,736,268 | 10,763,261 | 10,476,704 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 9,763,217 | 10,763,261 | 10,556,785 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 33,923 | $ (197,713) | $ 35,966 |
Other comprehensive income (loss): | |||
Reclassification adjustments for realized losses (gains) on investment securities available-for-sale included in net income (loss) | 0 | 185,463 | (4) |
Unrealized (losses) gains on investment securities available-for-sale, net | 0 | (191,283) | 9,444 |
Reclassification adjustments associated with net unrealized losses (gains) from interest rate swaps included in net income (loss) | 1,851 | 1,254 | (91) |
Unrealized losses on derivatives, net | 0 | (7,233) | (4,471) |
Total other comprehensive income (loss) | 1,851 | (11,799) | 4,878 |
Comprehensive income (loss) before allocation to preferred shares | 35,774 | (209,512) | 40,844 |
Net income allocated to preferred shares | (15,887) | (10,350) | (10,350) |
Comprehensive income (loss) allocable to common shares | $ 19,887 | $ (219,862) | $ 30,494 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock8.625% Series C Preferred Stock | Preferred Stock8.625% Series C Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock7.875% Series D Preferred Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings (Distributions In Excess of Earnings) | Retained Earnings (Distributions In Excess of Earnings)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Distributions In Excess of Earnings)Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Dec. 31, 2018 | $ 553,819 | $ 11 | $ 5 | $ 1,082,698 | $ (3,057) | $ (525,838) | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 10,552,499 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 152 | 152 | |||||||||||||
Stock-based compensation (in shares) | 79,077 | ||||||||||||||
Amortization of stock-based compensation | 2,212 | 2,212 | |||||||||||||
Forfeiture of unvested stock (in shares) | (4,712) | ||||||||||||||
Net income (loss) | 35,966 | 35,966 | |||||||||||||
Distributions and accrual of cumulative on preferred stock dividends | (10,350) | (10,350) | |||||||||||||
Securities available-for-sale without an allowance for credit losses, fair value adjustment, net | 9,440 | 9,440 | |||||||||||||
Designated derivatives, fair value adjustment | (4,562) | (4,562) | |||||||||||||
Distributions on common stock | (30,279) | (30,279) | |||||||||||||
Ending balance at Dec. 31, 2019 | 556,398 | $ (3,032) | $ 553,366 | $ 11 | $ 11 | 5 | $ 5 | 1,085,062 | $ 1,085,062 | 1,821 | $ 1,821 | (530,501) | $ (3,032) | $ (533,533) | |
Ending balance (in shares) at Dec. 31, 2019 | 10,626,864 | 10,626,864 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Equity component of 12% Senior Unsecured Notes | 3,108 | 3,108 | |||||||||||||
Purchase and retirement of common stock | (5,365) | $ (1) | (5,364) | ||||||||||||
Purchase and retirement of common stock (in shares) | (535,485) | ||||||||||||||
Stock-based compensation | (1) | (1) | |||||||||||||
Stock-based compensation (in shares) | 80,906 | ||||||||||||||
Amortization of stock-based compensation | 3,136 | 3,136 | |||||||||||||
Forfeiture of unvested stock (in shares) | (9,996) | ||||||||||||||
Net income (loss) | (197,713) | (197,713) | |||||||||||||
Distributions and accrual of cumulative on preferred stock dividends | (10,350) | (10,350) | |||||||||||||
Securities available-for-sale without an allowance for credit losses, fair value adjustment, net | (5,820) | (5,820) | |||||||||||||
Designated derivatives, fair value adjustment | (5,979) | (5,979) | |||||||||||||
Ending balance at Dec. 31, 2020 | $ 334,382 | $ 10 | 5 | 1,085,941 | (9,978) | (741,596) | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 10,162,289 | 10,162,289 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Proceeds from issuance of preferred stock | $ 115,194 | $ 5 | 115,189 | ||||||||||||
Offering costs | (4,589) | (4,589) | |||||||||||||
Purchase and retirement of common stock | (18,401) | $ (1) | (18,400) | ||||||||||||
Purchase and retirement of common stock (in shares) | (1,346,539) | ||||||||||||||
Stock-based compensation (in shares) | 333,329 | ||||||||||||||
Amortization of stock-based compensation | 1,722 | 1,722 | |||||||||||||
Net income (loss) | 33,923 | 33,923 | |||||||||||||
Distributions and accrual of cumulative on preferred stock dividends | (15,887) | (15,887) | |||||||||||||
Amortization of terminated derivatives | 1,851 | 1,851 | |||||||||||||
Ending balance at Dec. 31, 2021 | $ 448,195 | $ 9 | $ 5 | $ 5 | $ 1,179,863 | $ (8,127) | $ (723,560) | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 9,149,079 | 9,149,079 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | Dec. 31, 2020 |
12% Senior Unsecured Notes | |
Debt instrument, interest rate, stated percentage | 12.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | $ 33,923 | $ (197,713) | $ 35,966 |
Net loss from discontinued operations, net of tax | 251 | ||
Net income (loss) from continuing operations | 33,923 | (197,713) | 36,217 |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by continuing operating activities: | |||
(Reversal of) provision for credit losses, net | (21,262) | 30,815 | 58 |
Depreciation, amortization and accretion | 13,988 | 6,524 | 3,399 |
Amortization of stock-based compensation | 1,722 | 3,136 | 2,212 |
Sale of and principal payments on syndicated corporate loans held for sale | 43 | ||
Loss on the extinguishment of debt | 4,043 | ||
Net realized and unrealized (gain) loss on investment securities available-for-sale and loans and derivatives | (878) | 186,545 | (4) |
Net gain on conversion to real estate | (1,794) | ||
Fair value and other adjustments on asset held for sale | 8,768 | 4,682 | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accrued interest receivable, net of purchased interest | 1,347 | (322) | 353 |
Increase in interest receivable - related party | (39) | ||
Increase (decrease) in management fee payable | 119 | (259) | (85) |
Increase (decrease) in accounts payable and other liabilities | 4,101 | (559) | (4,160) |
Decrease in lease liability | (39) | ||
(Decrease) increase in accrued interest payable | (39) | 1,536 | 185 |
Decrease (increase) in other assets | 3,567 | (4,828) | 492 |
Net cash provided by continuing operating activities | 40,592 | 31,810 | 43,392 |
Net cash used in discontinued operating activities | (59) | ||
Net cash provided by operating activities | 40,592 | 31,810 | 43,333 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Origination and purchase of loans | (1,381,660) | (298,094) | (918,917) |
Principal payments received on loans and leases | 1,008,967 | 509,236 | 695,409 |
Investments in real estate | (28,924) | ||
Proceeds from sale of loans or assets previously held for sale | 7,915 | 27,745 | |
Purchase of investment securities available-for-sale | (24,610) | (146,627) | |
Principal payments on investment securities available-for-sale | 4,733 | 56,295 | |
Proceeds from sale of investment securities available-for-sale | 2,958 | 37,764 | 638 |
Purchase of furniture and fixtures | (61) | (5) | |
Investment in loan - related party | (12,000) | ||
Principal payments received on loan - related party | 300 | 125 | |
Net cash (used in) provided by continuing investing activities | (390,505) | 244,894 | (313,202) |
Net cash provided by discontinued investing activities | 135 | ||
Net cash (used in) provided by investing activities | (390,505) | 244,894 | (313,067) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of preferred shares (net of offering costs of $4,589) | 110,605 | ||
Repurchase of common stock | (18,401) | (5,365) | |
Proceeds from borrowings: | |||
Securitizations | 1,242,223 | 639,074 | 575,811 |
Senior secured financing facility | 173,087 | 128,495 | |
Warehouse financing facilities and repurchase agreements | 862,681 | 288,555 | 913,865 |
Senior unsecured notes | 150,000 | 50,000 | |
Payments on borrowings: | |||
Securitizations | (801,622) | (413,023) | (329,717) |
Senior secured financing facility | (206,447) | (95,135) | |
Warehouse financing facilities and repurchase agreements | (805,119) | (827,684) | (847,334) |
Convertible senior notes | (55,736) | (21,182) | |
Senior unsecured notes | (50,000) | ||
Payment of debt issuance costs | (20,818) | (16,253) | (6,529) |
Settlement of derivative instruments | (11,762) | ||
Distributions paid on preferred stock | (14,350) | (10,350) | (10,350) |
Distributions paid on common stock | (8,767) | (27,052) | |
Net cash provided by (used in) continuing financing activities | 566,103 | (303,397) | 268,694 |
Net cash provided by (used in) financing activities | 566,103 | (303,397) | 268,694 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | 216,190 | (26,693) | (1,040) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 67,741 | 94,434 | 95,474 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | $ 283,931 | $ 67,741 | $ 94,434 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statement Of Cash Flows [Abstract] | |
Underwriting discounts and offering costs | $ 4,589 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION ACRES Commercial Realty Corp., a Maryland corporation, along with its subsidiaries (collectively, the “Company”), is a real estate investment trust (“REIT”) that is primarily focused on originating, holding and managing commercial real estate (“CRE”) mortgage loans and other commercial real estate-related debt investments. On July 31, 2020, the Company’s management contract was acquired from Exantas Capital Manager Inc. (the “Prior Manager”), a subsidiary of C-III Capital Partners LLC (“C-III”), by ACRES Capital, LLC (the “Manager”), a subsidiary of ACRES Capital Corp. (collectively, “ACRES”), a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, office and industrial property in top United States (“U.S.”) markets (the “ACRES acquisition”). The Company has qualified, and expects to qualify in the current fiscal year, as a REIT. The Company conducts its operations through the use of subsidiaries that it consolidates into its financial statements. The Company’s core assets are consolidated through its investment in ACRES Realty Funding, Inc. (“ACRES RF”), a wholly-owned subsidiary that holds CRE loans, CRE-related securities and investments in CRE securitizations, which are consolidated as VIEs as discussed in Note 3, and special purpose entities. Reverse Stock Split Effective February 16, 2021, the Company completed a one-for-three |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) 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. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and within the period of financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated useful lives used to calculate depreciation, the expected lives over which to amortize premiums and accrete discounts, reversals of or provisions for expected credit losses and the disclosure of contingent liabilities. The coronavirus (“COVID-19”) pandemic continues to plague countries throughout the globe as virus variants have emerged, which, when recognized, led numerous countries, including the U.S., to declare national emergencies. Many countries responded to the initial outbreak beginning in late 2019 by instituting quarantines and restrictions on travel and limiting operations of non-essential offices and retail centers, which resulted in the closure or remote operation of non-essential businesses, increased rates of unemployment and market disruption in connection with the economic uncertainty. While the U.S. and certain countries around the world have eased restrictions and financial markets have stabilized to some degree in connection with the discovery and distribution of vaccines and other treatments, the pandemic, exacerbated by virus variants, continues to cause uncertainty on the U.S. and global economies, generally, and the CRE business in particular, which make estimates and assumptions as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19, particularly the reinstatement of restrictions placed on businesses. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available at December 31, 2021. Actual results may ultimately differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2021 and 2020, approximately $33.3 million and $27.3 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company’s cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums as well as cash held for primarily for the Company’s CRE debt securitizations as well as cash held in the CRE debt securitizations and the syndicated corporate loan collateralized debt obligations (“CDOs”). The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2021 2020 Cash and cash equivalents $ 35,500 $ 29,355 Restricted cash 248,431 38,386 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 283,931 $ 67,741 Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets are accounted for under the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Investment Securities The Company classified its investment securities portfolio as available-for-sale. The Company, from time to time, historically sold its investments due to changes in market conditions or in accordance with its investment strategy. The Company historically reported its investment securities available-for-sale at fair value. To determine fair value, the Company used an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluated the reasonableness of the valuation it received by using a dealer quote, bid, or internal model. If there was a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company evaluated the difference, which could have resulted in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorized these investments as either Level 2 or Level 3 in the fair value hierarchy. Historically, any changes in fair value of the Company’s investment securities available-for-sale were recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluated available-for-sale securities with fair values below their amortized cost bases to determine the estimate of expected credit losses. Evidence of the need for an allowance for credit losses was based on consideration of several factors, including (i) if the Company intended to sell the security, (ii) if it was more likely than not that the Company would be required to sell the security before recovering its cost, or (iii) whether a portion of the unrealized loss was a result of credit losses or other market factors. A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intended to sell a debt security with a fair value below the amortized cost basis or it was more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, a write-off was recognized in earnings through a charge to the amortized cost of the security and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company did not intend nor was it more likely than not that it would be required to sell before recovery, the loss would be separated into (i) the estimated amount relating to the credit loss and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized in earnings through an increase to the allowance for credit losses, with the remainder of the loss recognized in other comprehensive income. If the Company used a discounted cash flow approach to estimate expected credit losses, changes in the present value attributable to the passage of time were recorded in the provision for credit losses. Estimating cash flows and determining whether there were credit losses required management to exercise judgment and to make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual losses, and the timing of income recognized on these securities, could have differed from reported amounts. Historically, investment security transactions were recorded on the trade date. Realized gains and losses on investment securities were determined on the specific identification method. Investment Security Interest Income Recognition Historically, interest income on the Company’s mortgage-backed securities (“MBS”) was accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts were amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield was the contractual interest rate on the investment. If the investment was purchased at a discount or at a premium, the effective yield was computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method required the Company to make estimates of future prepayment rates for its investments that could be contractually prepaid before the contractual maturity date so that the purchase discount could be accreted, or the purchase premium could be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company used directly impacted the estimated remaining lives of its investments. Actual prepayment estimates were reviewed at each quarter end or more frequently if the Company became aware of any material information that would lead it to believe that an adjustment was necessary. For MBS that was not of high credit quality or that could be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may have resulted in a prospective change in interest income recognized. For MBS that was of high credit quality, changes in the original or most recent cash flow projections may have resulted in an immediate cumulative adjustment in interest income recognized. The Company recorded interest receivable on its available-for-sale debt securities in accrued interest receivable on its consolidated balance sheet. The Company analyzed the interest receivable balances on a timely basis, or at least quarterly, to determine if they were uncollectible. If an interest receivable balance was deemed uncollectible, then the Company wrote off the balance of the interest receivable through a reversal of interest income. Loans The Company acquires loans through direct origination and occasionally through purchases from third-parties and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records loans at the amount funded for originated loans or at the acquisition price for loans purchased, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related write-off considerations prior to the transfer of the loan to loans held for sale are accounted for through the allowance for credit losses on the Company’s consolidated balance sheets. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. The Company records interest receivable on its loans in accrued interest receivable on its consolidated balance sheets. The Company analyzes the interest receivable balances on a timely basis, or at least quarterly, to determine if they are uncollectible. If an interest receivable balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. Preferred Equity Investment Historically, the Company invested in preferred equity investments. Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, could be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments were accounted for as CRE loans held for investment, were carried at cost, net of unamortized loan fees and origination costs, and were included within CRE loans on the Company’s consolidated balance sheets. The Company accreted or amortized any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees were recognized as income subject to recoverability, which was substantiated by obtaining annual appraisals on the underlying property. Allowance for Credit Losses The Company maintains an allowance for credit loss on its loans held for investment. Effective January 1, 2020, the Company determines its allowance for credit losses by measuring the current expected credit losses (“CECL”) on the loan portfolio on a quarterly basis. The Company utilizes a probability of default and loss given default methodology together with collateral-specific data for each loan over a reasonable and supportable forecast period after which it reverts to its historical mean loss ratio, utilizing a blended approach sourced from its own historical losses and the market losses from an engaged third party’s database, to be applied for the remaining estimable period. The CECL model requires the Company to make significant judgements, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection and weighting of appropriate macroeconomic forecast scenarios, (iii) projections for the amounts and timing of future fundings of committed balances and prepayments on CRE investments, (iv) the determination of the risk characteristics in which to pool financial assets, and (v) the appropriate historical loss data to use in the model. Unfunded commitments are not considered in the CECL reserve if they are unconditionally cancellable by the Company. The Company measures the loan portfolio’s credit losses by grouping loans based on similar risk characteristics under CECL, which is typically based on the loan’s collateral type. The Company regularly evaluates the risk characteristics of its loan portfolio to determine whether a different pooling methodology is more accurate. Further, if the Company determines that foreclosure of a loan’s collateral is probable or repayment of the loan is expected through sale or operation of the collateral and the borrower is experiencing financial difficulty, expected credit losses are measured as the difference between the current fair value of the collateral and the amortized cost of the loan. Fair value may be determined based on (i) the present value of estimated cash flows; (ii) the market price, if available; or (iii) the fair value of the collateral less estimated disposition costs. While a loan exhibiting credit quality deterioration may remain on accrual status, the loan is placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the credit deterioration; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. The Company utilizes the contractual life of its loans to estimate the period over which it measures expected credit losses. Estimates for prepayments and extensions are incorporated into the inputs for the Company’s CECL model. Modifications to loan terms, such as a modification in connection with a troubled debt restructuring (“TDR”), where a concession is granted to a borrower experiencing financial difficulty, may result in the extension of the loan’s life and an increase in the allowance for credit losses. In March 2020, the Financial Accounting Standards Board (“FASB”) concurred with a joint statement of federal and state banking regulators that eased the requirements to classify a modification as a TDR if the modification was granted in connection with the effects of the COVID-19 pandemic. If the concession granted on a TDR can only be captured through a discounted cash flow analysis, then the Company will individually assess the loan for expected credit losses using the discounted cash flow method. In order to calculate the historical mean loss ratio applied to the loan portfolio, the Company utilizes historical losses from its full underwriting history, along with the market loss history of a selected population of loans from a third party’s database that are similar to the Company’s loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. The Company may make adjustments to the historical loss history for qualitative or environmental factors if it believes there is evidence that the estimate for expected credit losses should be increased or decreased. The Company records write-offs against the allowance for credit losses if it deems that all or a portion of a loan’s balance is uncollectible. If the Company receives cash in excess of some or all of the amounts it previously wrote off, it records the recovery by increas ing the allowance for credit losses. As part of the evaluation of the loan portfolio, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from the least risk to the greatest risk, in connection with this review. Prior to the implementation of CECL, the Company calculated its allowance for credit losses through the calculation of general and specific reserves. The general reserve, established for loans not determined to be impaired individually, was based on the Company’s loan risk ratings. The Company recorded a general reserve equal to 1.5% of the aggregate face values of loans with a risk rating of “3,” plus 5.0% of the aggregate face values of loans with a risk rating of “4.” Loans with a risk rating of “5” were individually measured for impairment to be included in a specific reserve on a quarterly basis. The Company considered a loan to be impaired if at least one of two conditions exists. The first condition was if, based on the Company’s evaluation as part of the loan risk rating process, management believed that a loss event had occurred that made it probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition was that the loan was deemed to be a TDR. These TDRs may not have had an associated specific credit loss allowance if the principal and interest amount was considered recoverable based on market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan was impaired under either of these two conditions, the allowance for credit losses was increased by the amount of the excess of the amortized cost basis of the loan over its fair value. When a loan, or a portion thereof, was considered uncollectible and pursuit of collection was not warranted, the Company recorded a charge-off or write-down of the loan against the allowance for credit losses. Operating Revenue at Properties Through its investments in real estate, the Company earns revenue associated with rental operations and hotel operations, which are presented in real estate income on the consolidated statements of operations. The Company’s rental operating revenue consists of fixed contractual base rent arising from tenant leases at the Company’s office properties under operating leases. Revenue is recognized on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s consolidated balance sheet. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any uncollectible receivable balance will be written off. Hotel operating revenue consists of amounts derived from hotel operations, including room sales and other hotel revenues. The Company recognizes hotel operating revenue when guest rooms are occupied, services have been provided or fees have been earned. Revenues are recorded net of any sales, occupancy or other taxes collected from customers on behalf of third parties. The following provides additional detail on room revenue and other operating revenue: • • Investment in Real Estate The Company acquires investments in real estate through direct equity investments and as a result of its lending activities (i.e. through the receipt of the deed-in-lieu of foreclosure on a property). Acquired investments in real estate assets are recorded initially at fair value in accordance with U.S. GAAP. The Company allocates the purchase price of its acquired assets and assumed liabilities based on the relative fair values of the assets acquired and liabilities assumed. The Company accounts for leases that it acquires as operating leases. The Company evaluates whether property obtained as a result of its lending activities should be identified as held for sale. If a property is determined to be held for sale, all of the acquired assets and assumed liabilities will be recorded in property held for sale on the consolidation balance sheet and recorded at the lower of cost or fair value, see the “Assets and Liabilities Held for Sale” section below. Once a property is classified as held for sale, depreciation expense is no longer recorded. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property, building and tenant improvements and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets. The Company amortizes any acquired intangible assets using the straight-line method over the estimated useful lives of the intangible assets. The Company amortizes the value allocated to lease right of use assets and related in-place lease liabilities, when determined to be operating leases, using the straight-line method over the remaining lease term. The value allocated to any associated above or below market lease intangible asset or liability is amortized to lease expense over the remaining lease term. Ordinary repairs and maintenance are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 10 years Tenant improvements 180 days to 3 years FF&E 5 years Right of use assets 66.3 years Intangible assets 180 days to 16.5 years Lease liabilities 66.3 years Leases The value of the operating leases are determined through the discounted cash flow method and are recognized on the consolidated balance sheet as offsetting right of use assets and lease liabilities. The operating lease for the Company’s office space is amortized over the lease term, or 7.3 years, using the effective-interest method. The Company’s operating lease for office equipment is amortized over the lease term, or three years, using the straight-line method. Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 - VARIABLE INTEREST ENTITIES The Company has evaluated its loans, investments in unconsolidated entities, liabilities to subsidiary trusts issuing preferred securities (consisting of unsecured junior subordinated notes), securitizations, guarantees and other financial contracts in order to determine if they are variable interests in VIEs. The Company regularly monitors these legal interests and contracts and, to the extent it has determined that it has a variable interest, analyzes the related entity for potential consolidation. Consolidated VIEs (the Company is the primary beneficiary) Based on management’s analysis, the Company was the primary beneficiary of seven and six VIEs at December 31, 2021 and 2020, respectively (collectively, the “Consolidated VIEs”). The Consolidated VIEs are CRE securitizations and CDOs that were formed on behalf of the Company to invest in real estate-related securities, commercial mortgage-backed securities (“CMBS”), syndicated corporate loans, corporate bonds and ABS, and were financed by the issuance of debt securities. By financing these assets with long-term borrowings through the issuance of debt securities, the Company seeks to generate attractive risk-adjusted equity returns and to match the term of its assets and liabilities. The primary beneficiary determination for each of these VIEs was made at each VIE’s inception and is continually assessed The Company has exposure to losses on its securitizations to the extent of its investments in the subordinated debt and preferred equity of each securitization. The Company is entitled to receive payments of principal and interest on the debt securities it holds and, to the extent revenues exceed debt service requirements and other expenses of the securitizations, distributions with respect to its preferred equity interests. As a result of consolidation, the debt and equity interests the Company holds in these securitizations have been eliminated, and the Company’s consolidated balance sheets reflect the assets held, debt issued by the securitizations to third parties and any accrued payables to third parties. The Company’s operating results and cash flows include the gross amounts related to the securitizations’ assets and liabilities as opposed to the Company’s net economic interests in the securitizations. Assets and liabilities related to the securitizations are disclosed, in the aggregate, on the Company’s consolidated balance sheets. For a discussion of the debt issued through the securitizations see Note 12. Creditors of the Company ’ s Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the years ended December 31, 2021, 2020 and 2019 , the Company did not provide any financial support to any of its VIEs nor does it have any requirement to do so, although it may choose to do so in the future to maximize future cash flows on such investments by the Company. There are no explicit arrangements that obligate the Company to provide financial support to any of its Consolidated VIEs. The following table shows the classification and carrying values of assets and liabilities of the Company’s Consolidated VIEs at December 31, 2021 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 247,966 $ 405 $ 248,371 Accrued interest receivable 3,826 — 3,826 CRE loans, pledged as collateral (1) 1,601,482 — 1,601,482 Principal paydowns receivable 14,899 — 14,899 Other assets 36 — 36 Total assets (2) $ 1,868,209 $ 405 $ 1,868,614 LIABILITIES Accounts payable and other liabilities $ 315 $ — $ 315 Accrued interest payable 997 — 997 Borrowings 1,466,499 — 1,466,499 Total liabilities $ 1,467,811 $ — $ 1,467,811 (1) Excludes allowance for credit losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s financial statements at December 31, 2021. The Company continuously reassesses whether it is deemed to be the primary beneficiary of its unconsolidated VIEs. The Company’s maximum exposure to risk for each of these unconsolidated VIEs is set forth in the “Maximum Exposure to Loss” column in the table below. Unsecured Junior Subordinated Debentures The Company has a 100% interest in the common shares of Resource Capital Trust I (“RCT I”) and RCC Trust II (“RCT II”), respectively, with a value of $1.5 million in the aggregate, or 3.0% of each trust, at December 31, 2021. RCT I and RCT II were formed for the purposes of providing debt financing to the Company. The Company completed a qualitative analysis to determine whether it is the primary beneficiary of each of the trusts and determined that it was not the primary beneficiary of either trust because it does not have the power to direct the activities most significant to the trusts, which include the collection of principal and interest through servicing rights. Accordingly, neither trust is consolidated into the Company’s consolidated financial statements. The Company records its investments in RCT I and RCT II’s common shares of $774,000 each as investments in unconsolidated entities using the cost method, recording dividend income when declared by RCT I and RCT II. The trusts each hold subordinated debentures, for which the Company is the obligor, in the amount of $25.8 million for each of RCT I and RCT II. The debentures were funded by the issuance of trust preferred securities of RCT I and RCT II. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2021 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 6 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,554 LIABILITIES Accrued interest payable 184 N/A Borrowings 51,548 N/A Total liabilities 51,732 N/A Net (liability) asset $ (50,178 ) N/A At December 31, 2021, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2021 2020 2019 Supplemental cash flows: Interest expense paid in cash $ 42,345 $ 44,677 $ 73,963 Income taxes paid in cash $ — $ — $ — Non-cash continuing operating activities include the following: Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure $ — $ (2,490 ) $ — Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure $ — $ (3,113 ) $ — Assumption of operating lease related to the receipt of deed in lieu of foreclosure $ — $ 3,113 $ — Acquisition of other right of use assets $ (479 ) $ — $ — Assumption of other operating lease liabilities $ 479 $ — $ — Non-cash continuing investing activities include the following: Investment in property held for sale related to the receipt of deed in lieu of foreclosure $ (17,600 ) $ — $ — Proceeds from the relinquishment of investment securities available-for-sale $ — $ 369,873 $ — Proceeds from the receipt of deed in lieu of foreclosure on loan $ 17,600 $ 39,750 $ — Investment in real estate assets related to the receipt of deed in lieu of foreclosure $ — $ (33,924 ) $ — Investment in intangible assets related to the receipt of deed in lieu of foreclosure $ — $ (3,336 ) $ — Non-cash continuing financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ — $ (369,873 ) $ — Distributions on common stock accrued but not paid $ — $ — $ 8,767 Distributions on preferred stock accrued but not paid $ 3,262 $ 1,725 $ 1,725 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company’s restricted cash (in thousands): December 31, 2021 2020 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 248,071 $ 38,353 Restricted cash pledged with minimum reserve balance requirements 360 33 Total $ 248,431 $ 38,386 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2021 | |
Loans Held For Investment [Abstract] | |
LOANS | NOTE 6 - LOANS The following is a summary of the Company’s loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Credit Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4) At December 31, 2021: CRE loans held for investment: Whole loans (5)(6) 93 $ 1,891,795 $ (13,944 ) $ 1,877,851 $ (8,550 ) $ 1,869,301 1M BR plus 2.70% to 1M BR plus 8.50% January 2022 to September 2025 Mezzanine loan (5) 1 4,700 — 4,700 (255 ) 4,445 10.00% June 2028 Total CRE loans held for investment $ 1,896,495 $ (13,944 ) $ 1,882,551 $ (8,805 ) $ 1,873,746 At December 31, 2020: CRE loans held for investment: Whole loans (5)(6) 95 $ 1,515,722 $ (6,144 ) $ 1,509,578 $ (32,283 ) $ 1,477,295 1M BR plus 2.70% to 1M BR plus 9.00% January 2021 to January 2024 Mezzanine loan (5) 1 4,700 — 4,700 (301 ) 4,399 10.00% June 2028 Preferred equity investments (7) 2 27,650 64 27,714 (1,726 ) 25,988 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,548,072 $ (6,080 ) $ 1,541,992 $ (34,310 ) $ 1,507,682 (1) Amounts include unamortized loan origination fees of $13.6 million and $5.7 million and deferred amendment fees of $307,000 and $495,000 at December 31, 2021 and 2020, respectively. Additionally, the amounts include unamortized loan acquisition costs of $7,300 and $118,000 at December 31, 2021 and 2020, respectively. (2) The Company’s whole loan portfolio of $1.9 billion and $1.5 billion had a weighted-average one-month benchmark rate (“BR”) floor of 0.75% and 1.88% at December 31, 2021 and 2020, respectively. Benchmark rates comprise one-month LIBOR or one-month Term SOFR. At December 31, 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. At December 31, 2020, all whole loans had one-month LIBOR floors. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) Maturity (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2021 and 2020. (6) CRE whole loans (7) The interest rate The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2022 2023 2024 and Thereafter Total At December 31, 2021: Whole loans (1) $ 377,024 $ 230,872 $ 1,242,013 $ 1,849,909 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 377,024 $ 230,872 $ 1,246,713 $ 1,854,609 Description 2021 2022 2023 and Thereafter Total At December 31, 2020: Whole loans (1) $ 599,053 $ 540,639 $ 330,143 $ 1,469,835 Mezzanine loan — — 4,700 4,700 Preferred equity investment — 6,452 21,262 27,714 Total CRE loans (2) $ 599,053 $ 547,091 $ 356,105 $ 1,502,249 (1) Maturity dates exclude three whole loans with amortized costs of $27.9 million, and three whole loans with an amortized cost of $39.7 million in maturity default at December 31, 2021 and 2020, respectively. (2) At December 31, 2021, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $52.0 million, $127.6 million and $1.7 billion in 2022, 2023 and 2024 and thereafter, respectively. At December 31, 2020, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $112.4 million, $125.1 million and $1.3 billion in 2021, 2022 and 2023 and thereafter, respectively. At December 31, 2021, approximately 28.4%, 18.4% and 15.2% of the Company’s CRE loan portfolio was concentrated in the Southeast, Southwest and Mid-Atlantic regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries. At December 31, 2020, approximately 21.4%, 17.9% and 16.1% of the Company’s CRE loan portfolio was concentrated in the Mountain, Southwest and Southeast regions, respectively, based on carrying value. No single loan or investment represented more than 10% of the Company’s total assets and no single investment group generated over 10% of its total revenue. Principal Paydowns Receivable Principal paydowns receivable represents loan principal payments that have been received by the Company’s servicers and trustees but have not been remitted to the Company. At December 31, 2021, the Company had $14.9 million of loan principal paydowns receivable, all of which was received in cash by the Company during January 2022. At December 31, 2020, the Company had $4.3 million of loan principal paydowns receivable, all of which was received by the Company during January 2021. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7 - FINANCING RECEIVABLES The following tables show the activity in the allowance for credit losses for the years ended December 31, 2021 and 2020 (in thousands): Years Ended December 31, 2021 2020 CRE Loans CRE Loans Allowance for credit losses: Allowance for credit losses at beginning of year $ 34,310 $ 1,460 Adoption of the new accounting guidance — 3,032 (Reversal of) provision for credit losses (21,262 ) 30,815 Charge offs (4,243 ) (997 ) Allowance for credit losses at end of year $ 8,805 $ 34,310 During the year ended December 31, 2020, higher expected unemployment and increased volatility in CRE asset pricing and liquidity as a result of the COVID-19 pandemic significantly impacted assumptions in the Company’s CECL estimates and resulted in a net provision for credit losses of $30.8 million. However, the discovery and distribution of vaccines and other treatments for COVID-19 led to a recovery of the global economy and markets worldwide during the year ended The ensuing improvements in expected unemployment and macroeconomic conditions, as well as improved collateral operating performance, resulted in a net reversal of expected credit losses of $21.3 million during the year ended December 31, 2021. In addition to the Company’s general estimate of credit losses, the Company may also be required to individually evaluate collateral-dependent loans for credit losses if it has determined that foreclosure or sale of the loan or the underlying collateral is probable. At December 31, 2021 and 2020, $2.3 million and $1.9 million, respectively, of the Company’s allowance for credit losses resulted from collateral-dependent loans that were individually evaluated for credit losses, details of which follow: During the year ended December 31, 2021, the Company individually evaluated the following loans: • An office loan in the East North Central region with a $19.9 million principal balance. The Company recorded a $2.3 million CECL allowance in the third quarter of 2021 to reflect the as-is appraised value of the property of $17.6 million. Upon receipt of the property in full satisfaction of the loan in the fourth quarter of 2021, the Company charged off the $2.3 million CECL allowance and recorded the property as a property held for sale on its consolidated balance sheet at its fair value of $17.6 million (see Note 8). • A hotel loan in the Northeast region with a $9.3 million principal balance. The Company recorded a $1.8 million CECL allowance in the third quarter of 2021 that reflected the Company’s estimate of fair value less costs of sale of $7.5 million at September 30, 2021. Upon sale of the loan in November 2021, the Company received proceeds of $7.6 million, net of costs of sale, and charged off the remaining $1.7 million CECL allowance. • A retail loan in the Pacific region with an $11.5 million principal balance. At December 31, 2021, the Company had a recorded $2.3 million CECL allowance that reflected the loss taken on the loan as a result of a discounted payoff received on the loan in January 2022 in full satisfaction of the loan. • A hotel loan in the East North Central region with an $8.4 million principal balance. The Company received payment in full on this loan in January 2022; and, as such, there was no CECL allowance recorded at December 31, 2021. • A hotel in the Northeast region with a $14.0 million principal balance. The hotel has an as-is appraised value in excess of its principal balance, and, as such, had no CECL allowance at December 31, 2021. During the year ended December 31, 2020, the Company individually evaluated a hotel loan in the Northeast region with a $37.9 million principal balance for which foreclosure was deemed probable. In November 2020, the Company received the deed-in-lieu of foreclosure on the property. In conjunction with the receipt of the deed, the Company obtained an updated appraisal that indicated an as-is appraised value of $39.8 million (see Note 8) and consequently reversed the then-outstanding $8.0 million CECL allowance and recorded the property as an investment in real estate on the consolidated balance sheet at its appraised value. Also at December 31, 2020, the Company individually evaluated a loan on an office property in the North East Central region with a $19.9 million principal balance and a hotel loan in the Northeast region with a $14.0 million par balance for which foreclosure was determined to be probable. The Company determined that these loans had CECL allowances of $1.9 million and $0, respectively, calculated as the difference between the as-is appraised values and the loans’ amortized costs. In June 2020, the Company sold one CRE whole loan note for $17.4 million, which resulted in a realized loss of $1.0 million recorded in the provision for credit losses during the year ended December 31, 2020. Credit quality indicators Commercial Real Estate Loans CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, loan structure and exit plan. Depending on the loan’s performance against these various factors, loans are rated on a scale from 1 to 5, with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with the lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company’s loan portfolio; as such, a loan’s rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Risk Rating Risk Characteristics 1 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Mezzanine loans and preferred equity investments may experience greater credit risks due to their nature as subordinated investments. For the purpose of calculating the quarterly provision for credit losses under CECL, the Company pools CRE loans based on the underlying collateral property type and utilizes a probability of default and loss given default methodology for approximately one year after which it immediately reverts to a historical mean loss ratio. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amounts in the footnote): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2021: Whole loans, floating-rate $ — $ 1,456,330 273,078 $ 123,762 $ 24,681 $ 1,877,851 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,456,330 $ 273,078 $ 128,462 $ 24,681 $ 1,882,551 At December 31, 2020: Whole loans, floating-rate $ — $ 611,838 $ 599,208 $ 262,398 $ 36,134 $ 1,509,578 Mezzanine loan — — 4,700 — — 4,700 Preferred equity investments — — 6,452 21,262 — 27,714 Total $ — $ 611,838 $ 610,360 $ 283,660 $ 36,134 $ 1,541,992 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2021 2020 2019 2018 2017 Prior Total (1) At December 31, 2021: Whole loans, floating-rate: (2) Rating 2 $ 1,230,810 $ 150,513 $ 55,510 $ 19,497 $ — $ — $ 1,456,330 Rating 3 33,781 24,604 136,305 60,888 — 17,500 273,078 Rating 4 — — 28,446 86,096 — 9,220 123,762 Rating 5 — — 22,385 — — 2,296 24,681 Total whole loans, floating-rate 1,264,591 175,117 242,646 166,481 — 29,016 1,877,851 Mezzanine loan (rating 4) — — — 4,700 — — 4,700 Total $ 1,264,591 $ 175,117 $ 242,646 $ 171,181 $ — $ 29,016 $ 1,882,551 2020 2019 2018 2017 2016 Prior Total (1) At December 31, 2020: Whole loans, floating-rate: (2) Rating 2 $ 221,364 $ 279,077 $ 111,397 $ — $ — $ — $ 611,838 Rating 3 43,579 246,073 246,944 45,142 — 17,470 599,208 Rating 4 — 77,495 129,536 46,220 — 9,147 262,398 Rating 5 — 13,938 — 19,900 — 2,296 36,134 Total whole loans, floating-rate 264,943 616,583 487,877 111,262 — 28,913 1,509,578 Mezzanine loan (rating 3) — — 4,700 — — — 4,700 Preferred equity investments: Rating 3 — 6,452 — — — — 6,452 Rating 4 — — 21,262 — — — 21,262 Total preferred equity investments — 6,452 21,262 — — — 27,714 Total $ 264,943 $ 623,035 $ 513,839 $ 111,262 $ — $ 28,913 $ 1,541,992 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. At December 31, 2021 and 2020, the Company had one mezzanine loan included in assets held for sale that had no carrying value. Loan Portfolios Aging Analysis The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing At December 31, 2021: Whole loans, floating-rate $ — $ — $ 19,916 $ 19,916 $ 1,857,935 $ 1,877,851 $ 19,916 Mezzanine loan — — — — 4,700 4,700 — Total $ — $ — $ 19,916 $ 19,916 $ 1,862,635 $ 1,882,551 $ 19,916 At December 31, 2020: Whole loans, floating-rate $ — $ — $ 11,443 $ 11,443 $ 1,498,135 $ 1,509,578 $ 11,443 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 27,714 27,714 — Total $ — $ — $ 11,443 $ 11,443 $ 1,530,549 $ 1,541,992 $ 11,443 (1) During the years ended December 31, 2021, 2020 and 2019, the Company recognized interest income of $1.2 million, $1.3 million and $1.1 million, respectively, on two loans with principal payments past due greater than 90 days at December 31, 2021. (2) Includes one whole loan and two whole loans with total amortized costs of $8.0 million and $28.3 million, respectively, in maturity default at December 31, 2021 and 2020, respectively. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, the Company had three whole loans in maturity default with total amortized costs of $27.9 million and $39.7 million, respectively During the year ended December 31, 2021, the Company received the deed-in-lieu of foreclosure on a property that collateralized a whole loan that was in maturity default at December 31, 2020 with an amortized cost of $19.9 million. At December 31, 2021, three whole loans, including two loans that had maturity defaults, with a total amortized cost of $30.4 million were past due on interest payments. In January 2022, two whole loans in maturity default at December 31, 2021 and 2020, including one loan that was past due on interest payments at December 31, 2021, paid off principal of $17.6 million. The payoff on one loan was the result of a discounted payoff and resulted in a realized loss of $2.3 million for which a CECL allowance was established as of December 31, 2021. Troubled-Debt Restructurings There were no TDRs during the year ended December 31, 2021 . During the year ended December 31, 2020, two loans underwent TDRs. In November 2020 and October 2021, the Company received the properties collateralizing both loans that underwent TDRs during the year ended December 31, 2020 through the receipt of the deeds-in-lieu of foreclosure on the properties. During the year ended December 31, 2021 the Company entered into 14 agreements that extended loans by a weighted average period of 11 months and, in certain cases, modified certain other loan terms. Two formerly forborne borrowers and one borrower performing in accordance with a forbearance agreement were in maturity default at December 31, 2021 . No loan modifications during the year ended December 31, 2021 |
INVESTMENTS IN REAL ESTATE AND
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Investments In Real Estate And Other Acquired Assets And Assumed Liabilities | NOTE 8 - INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES During the year ended December 31, 2021, the Company acquired investments in real estate through direct equity investments and as a result of its lending activities (primarily through foreclosure or deed-in-lieu of foreclosure in full or partial satisfaction of non-performing loans). The following table summarizes the acquisition date values of the acquired assets and assumed liabilities during the year ended December 31, 2021 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 22,359 Building 4,211 Building and tenant improvements 495 Investments in real estate 27,065 Intangible assets 1,726 Total 28,791 Liabilities assumed: Other liabilities (247 ) Fair value of net assets acquired 28,544 Investments in real estate from lending activities: Assets acquired: Property held for sale 17,889 Total fair value at acquisition of net assets acquired $ 46,433 The following table summarizes the book value of the Company’s acquired assets and assumed liabilities (in thousands, except amounts in the footnotes): December 31, 2021 December 31, 2020 Cost Basis Accumulated Depreciation & Amortization Carrying Value Cost Basis Accumulated Depreciation & Amortization Carrying Value Assets acquired: Investments in real estate, equity: Investments in real estate (1) $ 27,065 $ (191 ) $ 26,874 $ — $ — $ — Intangible assets (2) 1,726 (806 ) 920 — — — Subtotal 28,791 (997 ) 27,794 — — — Investments in real estate from lending activities: Investment in real estate (3) 34,124 (1,689 ) 32,435 33,929 (123 ) 33,806 Property held for sale (4) 17,846 — 17,846 — — — Right of use assets (5)(6) 5,603 (95 ) 5,508 5,603 (11 ) 5,592 Intangible assets (7) 3,337 (380 ) 2,957 3,336 (42 ) 3,294 Subtotal 60,910 (2,164 ) 58,746 42,868 (176 ) 42,692 Total 89,701 (3,161 ) 86,540 42,868 (176 ) 42,692 Liabilities assumed: Investments in real estate, equity: Other liabilities (247 ) 78 (169 ) — — — Investments in real estate from lending activities: Lease liabilities (6) (3,113 ) 53 (3,060 ) (3,113 ) 6 (3,107 ) Total (3,360 ) 131 (3,229 ) (3,113 ) 6 (3,107 ) $ 86,341 $ 83,311 $ 39,755 $ 39,585 (1) Includes (2) Carrying value includes approximately $819,000 of an acquired in-place lease intangible asset and $101,000 of an acquired leasing commission intangible asset at December 31, 2021. (3) Includes $129,000 of building renovations assets at carrying value at December 31, 2021 made subsequent to the date of acquisition of a property. Additionally, carrying value i ncludes approximately $60,000 and $5,000 of furniture and fixtures purchased for a property subsequent to the date of acquisition, at December 31, 2021 and 2020, respectively (4) Includes a property acquired in October 2021 that is being marketed for sale. (5) Right of use assets include a right of use asset associated with an acquired ground lease of $3.1 million accounted for as an operating lease and a below-market lease intangible asset of $2.4 million and $2.5 million at December 31, 2021 and 2020, respectively. (6) Refer to Note 9 for additional information on the Company’s remaining operating leases. (7) Carrying value includes franchise agreement intangible assets of $2.6 million and $2.8 million and a customer list intangible asset of $311,000 and $477,000 at December 31, 2021 and 2020, respectively. The right of use assets and lease liabilities comprised a ground lease acquired, determined to be an operating lease. The lease payments consist of air rights rent, retail rent and parking rent, the amounts of which are specifically determined in the executed lease agreement and subsequently increased based on the increase of the consumer price index over a specified amount of periods. The Company recorded approximately $47,000 and $6,000 of offsetting amortization and accretion on its right of use assets and lease liabilities during the years ended December 31, 2021 and 2020, respectively. There were no leases outstanding during the year ended December 31, 2019. During the years ended December 31, 2021 and 2020, the Company recorded amortization expense of approximately $1.2 million and $47,000, respectively, on its intangible assets. There were no intangible assets held during the year ended December 31, 2019. The Company expects to record amortization expense of $1.2 million, $401,000, $244,000, $210,000 and $210,000 during the 2022, 2023, 2024, 2025 and 2026 fiscal years, respectively, on its intangible assets. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 9 - LEASES In addition to the ground lease discussed in Note 8, the Company has operating leases for office space and office equipment. The leases have terms that expire between January 2024 and July 2028. The leases on the office space and office equipment contain options for early termination granted to the Company and the lessor. Lease payments are determined as follows: • Office space: payments are made on a fixed schedule, escalating annually, and include the Company’s responsibility for a percentage of increases in the building’s property taxes and operating expenses over the base year. • Office equipment: payments are made on a fixed schedule. The following table summarizes the Company’s operating leases (in thousands): December 31, 2021 Operating Leases: Right of use assets $ 443 Lease liabilities $ (477 ) Weighted average remaining lease term: 6.6 years Weighted average discount rate: 10.65 % The following table summarizes the Company’s operating lease costs and cash payments during the period (in thousands): Year Ended December 31, 2021 Lease Cost: Operating lease cost $ 75 The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands): Operating Leases 2022 $ 97 2023 99 2024 99 2025 102 2026 104 Thereafter 170 Subtotal 671 Less: impact of discount (194 ) Total $ 477 |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2021 | |
Available For Sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 10 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value At December 31, 2020: CMBS, fixed-rate $ 2,080 $ — $ — $ 2,080 (1) The amortized cost of CMBS excluded accrued interest receivable of $56,000 at December 31, 2020. Beginning in the first quarter of 2020, the COVID-19 pandemic produced material and previously unforeseeable liquidity shocks to credit markets, resulting in significant declines in the pricing of the Company’s investment securities available-for-sale. This triggered substantial margin calls by the Company’s counterparties and, in certain cases, formal notices of events of default, all of which were withdrawn or rescinded as of April 19, 2020 (see Note 12). As a result of these circumstances and the uncertainty caused by the COVID-19 pandemic, substantially all the Company’s remaining CMBS available-for-sale were sold as of April 2020. During the year ended December 31, 2020 During the year ended December 31, 2019 , the Company sold one CMBS position resulting in proceeds of $638,000 and a realized gain of $4,000. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 11 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The Company’s investments in unconsolidated entities at December 31, 2021 and December 31, 2020 comprised a 100% interest in the common shares of RCT I and RCT II with a value of $1.5 million in the aggregate, or 3.0% of each trust. The Company records its investments in RCT I’s and RCT II’s common shares as investments in unconsolidated entities using the cost method, recording dividend income when declared by RCT I and RCT II. During the years ended December 31, 2021, 2020 and 2019 the Company recorded dividends from its investments in RCT I’s and RCT II’s common shares, reported in other revenue on the consolidated statement of operations, of $65,000, $76,000, and $101,000, respectively |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 12 - BORROWINGS The Company historically has financed the acquisition of its investments, including investment securities and loans, through the use of secured and unsecured borrowings in the form of securitized notes, repurchase agreements, secured term warehouse financing facilities, a senior secured financing facility, senior unsecured notes, convertible senior notes and trust preferred securities issuances. Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2021: XAN 2020-RSO8 Senior Notes $ 142,375 $ 577 $ 141,798 2.18% 13.2 years $ 229,263 XAN 2020-RSO9 Senior Notes 94,814 489 94,325 4.25% 15.3 years 144,361 ACR 2021-FL1 Senior Notes (1) 675,223 5,410 669,813 1.60% 14.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 6,437 560,563 1.90% 15.1 years 700,000 Senior secured financing facility — 3,432 (3,432 ) 5.75% 6.2 years 170,791 CRE - term warehouse financing facilities (2)(3) 71,078 4,307 66,771 2.27% 2.8 years 102,027 4.50% Convertible Senior Notes 88,014 1,583 86,431 4.50% 227 days — 5.75% Senior Unsecured Notes (4) 150,000 3,393 146,607 5.75% 4.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.12% 14.7 years — Total $ 1,840,052 $ 25,628 $ 1,814,424 2.44% 12.7 years $ 2,149,085 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2020: XAN 2019-RSO7 Senior Notes $ 415,621 $ 2,861 $ 412,760 1.60% 15.3 years $ 516,979 XAN 2020-RSO8 Senior Notes 388,459 4,164 384,295 1.62% 14.2 years 475,347 XAN 2020-RSO9 Senior Notes 234,731 3,857 230,874 3.31% 16.3 years 285,862 Senior secured financing facility 33,360 4,046 29,314 5.75% 6.6 years 239,385 CRE - term warehouse financing facilities (2) 13,516 1,258 12,258 2.66% 299 days 20,000 4.50% Convertible Senior Notes 143,750 6,498 137,252 4.50% 1.6 years — 12.00% Senior Unsecured Notes 50,000 3,574 46,426 12.00% 6.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.18% 15.7 years — Total $ 1,330,985 $ 26,258 $ 1,304,727 2.83% 13.0 years $ 1,537,573 (1) Value of collateral excludes (2) Principal outstanding includes accrued interest payable of $58,000 and $16,000 at December 31, 2021 and 2020, respectively. (3) In October 2021, the (4) Includes deferred debt issuance costs of $306,000 at December 31, 2021 from the unused 12.00% senior unsecured notes (“12.00% Senior Unsecured Notes”). Securitizations The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2021 (in thousands): Closing Date Maturity Date Permitted Funded Companion Participation Acquisition Period End (1) Reinvestment Period End (2) Total Note Paydowns from Closing Date through December 31, 2021 XAN 2020-RSO8 March 2020 March 2035 March 2023 N/A $ 293,368 XAN 2020-RSO9 (3) September 2020 April 2037 N/A N/A $ 150,980 ACR 2021-FL1 May 2021 June 2036 N/A May 2023 $ — ACR 2021-FL2 (4) December 2021 January 2037 N/A December 2023 $ — (1) The permitted funded companion participation period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) The reinvestment period is the period in which principal proceeds received may be used to acquire CRE loans for reinvestment into the securitization. (3) XAN 2020-RSO9 (4) Includes a 180-day ramp up acquisition period that allows the securitization to acquire CRE loans using unused proceeds of $98.9 million at December 31, 2021 from the issuance of the non-recourse floating-rate notes. The investments held by the Company’s securitizations collateralize the securitizations’ borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes of the securitizations held by the Company at December 31, 2021 and 2020 were eliminated in consolidation. XAN 2019-RSO7 In April 2019, the Company closed Exantas Capital Corp. 2019-RSO7, Ltd. (“XAN 2019-RSO7”), a $687.2 million CRE debt securitization transaction that provided financing for CRE loans. In May 2021, the Company exercised the optional redemption of XAN 2019-RSO7, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. XAN 2020-RSO8 In March 2020, the Company closed XAN 2020-RSO8, a $522.6 million CRE debt securitization transaction that provided financing for CRE loans. XAN 2020-RSO8 issued a total of $435.7 million of non-recourse, floating-rate notes at par, of which ACRES RF purchased 100% of the Class D and Class E notes. The Company’s investments in the Class D and Class E notes were financed by CMBS short-term repurchase agreements and were sold in conjunction with the disposition of the Company’s CMBS portfolio in April 2020 (See Note 10). Additionally, ACRES RF purchased 100% of the Class F and Class G notes and a subsidiary of ACRES RF purchased 100% of the outstanding preference shares. The notes purchased by ACRES RF are subordinated in right of payment to all other senior notes issued by XAN 2020-RSO8, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2020-RSO8. At closing, the senior notes issued to investors consisted of the following classes: (i) $295.3 million of Class A notes bearing interest at one-month LIBOR plus 1.15%, increasing to 1.40% in November 2024; (ii) $39.2 million of Class A-S notes bearing interest at one-month LIBOR plus 1.45%, increasing to 1.70% in December 2024; (iii) $26.1 million of Class B notes bearing interest at one-month LIBOR plus 1.75%, increasing to 2.25% in January 2025; (iv) $32.7 million of Class C notes bearing interest at one-month LIBOR plus 2.15%, increasing to 2.65% in January 2025; (v) $26.1 million of Class D notes bearing interest at one-month LIBOR plus 2.50%, increasing to 3.00% in February 2025; and (vi) $16.3 million of Class E notes bearing interest at one-month LIBOR plus 2.80%, increasing to 3.30% in February 2025. All of the notes issued mature in March 2035, although the Company has the right to call the notes beginning on the payment date in March 2022 and thereafter. Principal repayments received, after closing and ending in March 2023, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. In June 2021, the benchmark rate on XAN 2020-RSO8’s senior notes, previously one-month LIBOR, was replaced with Compounded SOFR plus a benchmark adjustment. XAN 2020-RSO9 In September 2020, the Company closed XAN 2020-RSO9, a $297.0 million CRE debt securitization transaction that provided financing for CRE loans. XAN 2020-RSO9 issued a total of $245.8 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100% of the Class E and Class F notes and a subsidiary of ACRES RF retained 100% of the outstanding preference shares. The notes purchased by ACRES RF are subordinated in right of payment to all other senior notes issued by XAN 2020-RSO9, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2020-RSO9. At closing, the senior notes issued to investors consisted of the following classes: (i) $158.9 million of Class A notes bearing interest at one-month LIBOR plus 2.50%, increasing to 2.75% in June 2024; (ii) $26.7 million of Class A-S notes bearing interest at one-month LIBOR plus 3.50%, increasing to 3.75% in July 2025; (iii) $16.7 million of Class B notes bearing interest at one-month LIBOR plus 3.90%, increasing to 4.40% in July 2025; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 4.25%, increasing to 4.75% in August 2025; and (v) $22.7 million of Class D notes bearing interest at one-month LIBOR plus 5.50%, increasing to 6.00% in August 2025. All of the notes issued mature in April 2037, although the Company has the right to call the notes beginning on the earlier of the payment date in September 2022 and thereafter or the payment date on which the aggregate outstanding amount of the Class A notes has been reduced to zero. In June 2021, the benchmark rate on XAN 2020-RSO9’s senior notes, previously one-month LIBOR, was replaced with Compounded SOFR plus a benchmark adjustment. In February 2022, the Company exercised the optional redemption of XAN 2020-RSO9, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. ACR 2021-FL1 In May 2021, the Company closed ACRES Commercial Realty 2021-FL1 Issuer, Ltd. (“ACR 2021-FL1”), a $802.6 million CRE debt securitization transaction that provided financing for CRE loans. ACR 2021-FL1 issued a total of $675.2 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100% of the Class F and Class G notes and a subsidiary of ACRES RF retained 100% of the outstanding preference shares. The preference shares are subordinated in right of payment to all other securities issued by ACR 2021-FL1. ACR 2021-F1 includes a reinvestment period, which ends in May 2023, that allows it to acquire CRE loans for reinvestment into the securitization using uninvested principal proceeds. At closing, the senior notes issued to investors consisted of the following classes: (i) $431.4 million of Class A notes bearing interest at one-month LIBOR plus 1.20%; (ii) $100.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.60%; (iii) $37.1 million of Class B notes bearing interest at one-month LIBOR plus 1.80%; (iv) $43.1 million of Class C notes bearing interest at one-month LIBOR plus 2.00%; (v) $50.2 million of Class D notes bearing interest at one-month LIBOR plus 2.65%; and (vi) $13.0 million of Class E notes bearing interest at one-month LIBOR plus 3.10%. All of the notes issued mature in June 2036, although the Company has the right to call the notes beginning on the payment date in May 2023 and thereafter. ACR 2021-FL2 In December 2021, the Company closed ACRES Commercial Realty 2021-FL2 Issuer, Ltd. (“ACR 2021-FL2”), a CRE debt securitization transaction that can finance up to $700.0 million of CRE loans. ACR 2021-FL2 issued a total of $567.0 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100% of the Class F and Class G notes and a subsidiary of ACRES RF retained 100% of the outstanding preference shares. The preference shares are subordinated in right of payment to all other securities issued by ACR 2021-FL2. ACR 2021-FL2 includes a 180-day ramp up acquisition period that allows it to acquire CRE loans using unused proceeds from the issuance of the non-recourse floating-rate notes. Additionally, ACR 2021-FL2 includes a reinvestment period, which ends in December 2023, that allows it to acquire CRE loans for reinvestment into the securitization using uninvested principal proceeds. At closing, the senior notes issued to investors consisted of the following classes: (i) $385.0 million of Class A notes bearing interest at one-month LIBOR plus 1.40%; (ii) $30.6 million of Class A-S notes bearing interest at one-month LIBOR plus 1.75%; (iii) $38.5 million of Class B notes bearing interest at one-month LIBOR plus 2.25%; (iv) $47.3 million of Class C notes bearing interest at one-month LIBOR plus 2.65%; (v) $51.6 million of Class D notes bearing interest at one-month LIBOR plus 3.10%; and (vi) $14.0 million of Class E notes bearing interest at one-month LIBOR plus 4.00%; All of the notes issued mature in January 2037, although the Company has the right to call the notes beginning on the payment date in December 2023 and thereafter. Corporate Debt Unsecured Junior Subordinated Debentures During 2006, the Company formed RCT I and RCT II for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II were included in borrowings and were amortized into interest expense on the consolidated statements of operations using the effective yield method over a ten year period. There were no unamortized debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II outstanding at December 31, 2021 and 2020. The interest rates for RCT I and RCT II, at December 31, 2021, were 4.17% and 4.08%, respectively. The interest rates for RCT I and RCT II, at December 31, 2020, were 4.19% and 4.16%, respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve in May 2041 and RCT II will dissolve in September 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, which mature in June 2036 and October 2036, respectively, and may currently be called at par. 4.50% Convertible Senior Notes and 8.00% Convertible Senior Notes The Company issued $100.0 million aggregate principal of its 8.00% convertible senior notes due 2020 (“8.00% Convertible Senior Notes”) During the year ended December 31, 2021, the Company repurchased $55.7 million of its 4.50% Convertible Senior Notes, resulting in a charge to earnings of $1.5 million, comprising an extinguishment of debt charge of $1.2 million in connection with the acceleration of the market discount and interest expense of $304,000 in connection with the acceleration of deferred debt issuance costs. In February 2022, the Company repurchased $39.8 million of its 4.50% Convertible Senior Notes. The following table summarizes the 4.50% Convertible Senior Notes at December 31, 2021 (dollars in thousands, except the conversion price and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3)(4) Conversion Price (4) Maturity Date 4.50% Convertible Senior Notes $ 88,014 4.50 % 7.43 % 27.7222 $ 36.06 August 15, 2022 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the 4.50% Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) During the years ended December 31, 2021 and 2020 the effective interest rate for the 4.50% Convertible Senior Notes was 7.43%. (3) Represents the number of shares of common stock per $1,000 principal amount of the 4.50% Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture (4) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2021 are adjusted to reflect quarterly cash dividends in excess of a $0.30 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. The 4.50% Convertible Senior Notes are convertible at the option of the holder at any time up until one business day before the maturity date and may be settled in cash, the Company’s common stock or a combination of cash and the Company’s common stock, at the Company’s election. The Company may not redeem the 4.50% Convertible Senior Notes prior to maturity. The closing price of the Company’s common stock was $12.47 on December 31, 2021, which did not exceed the conversion price of its 4.50% Convertible Senior Notes at December 31, 2021. Senior Unsecured Notes 5.75% Senior Unsecured Notes Due 2026 On August 16, 2021, the Company issued $150.0 million of its 5.75% senior unsecured notes due 2026 (the “5.75% Senior Unsecured Notes”) pursuant to its Indenture, dated August 16, 2021 (the “Base Indenture”), between it and Wells Fargo, now Computershare Trust Company, N.A. (“CTC”), as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated August 16, 2021, between it and Wells Fargo, now CTC, (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Prior to May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, in whole or in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date, and (ii) a make-whole premium. On or after May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of the 5.75% Senior Unsecured Notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date. The Indenture contains restrictive covenants that, among other things, require the Company to maintain certain financial ratios. The foregoing limitations are subject to exceptions as set forth in the Supplemental Indenture. At December 31, 2021, the Company was in compliance with these covenants. The Indenture provides for customary events of default that include, among other things (subject in certain cases to customary grace and cure periods): (i) non-payment of principal or interest, (ii) breach of certain covenants contained in the Indenture or the 5.75% Senior Unsecured Notes, (iii) an event of default or acceleration of certain other indebtedness of the Company or a subsidiary in which the Company has invested at least $75 million in capital within the applicable grace period and (iv) certain events of bankruptcy or insolvency. Generally, if an event of default occurs (subject to certain exceptions), CTC or the holders of at least 25% in aggregate principal amount of the then outstanding 5.75% Senior Unsecured Notes may declare all of the notes to be due and payable. 12.00% Senior Unsecured Notes On July 31, 2020, the Company entered into a Note and Warrant Purchase Agreement (the “Note and Warrant Purchase Agreement”) with Oaktree Capital Management, L.P. (“Oaktree”) and Massachusetts Mutual Life Insurance Company (“MassMutual”) pursuant to which the Company may issue to Oaktree and MassMutual from time to time up to $125.0 million aggregate principal amount of 12.00% Senior Unsecured Notes. The 12.00% Senior Unsecured Notes had an annual interest rate of 12.00%, payable up to 3.25% (at the election of the Company) as pay-in-kind interest and the remainder as cash interest. On July 31, 2020, the Company issued to Oaktree $42.0 million aggregate principal amount of the 12.00% Senior Unsecured Notes. In addition, on July 31, 2020, the Company issued to MassMutual $8.0 million aggregate principal amount of the 12.00% Senior Unsecured Notes. At December 31, 2020, the Company had a discount of $3.1 million (the offset of which was recorded in additional paid-in capital) on the 12.00% Senior Unsecured Notes. On August 18, 2021, the Company entered into an agreement with Oaktree and MassMutual that provided for the redemption in full of the outstanding balance of the 12.00% Senior Unsecured Notes, including a waiver of certain sections of the Note and Warrant Purchase Agreement. On August 20, 2021, the redemption was consummated and a payment to Oaktree and MassMutual was made for an aggregate $55.3 million, which consisted of (i) principal in the amount of $50.0 million, (ii) interest in the amount of approximately $329,000 and (iii) a make-whole amount of approximately $5.0 million. In connection with the redemption, the Company recorded a charge to earnings of $8.0 million, comprising an extinguishment of debt charge of $7.8 million in connection with (i) the $5.0 million net make-whole amount and (ii) the $2.8 million acceleration of the remaining market discount; and interest expense of $218,000 in connection with the acceleration of deferred debt issuance costs. In January 2022, the Company entered into an amendment of the Note and Warrant Purchase Agreement that extended the time to July 2022 that the Company may elect to issue to Oaktree and MassMutual up to $75.0 million of principal of additional notes. At any time and from time to time prior to July 31, 2022, the Company may elect to issue to Oaktree and MassMutual warrants to purchase an additional 699,992 shares of the common stock for a purchase price equal to the principal amount of the 12.00% Senior Unsecured Notes being issued. The warrants are immediately exercisable on issuance and expire seven years from the issuance date. The warrants can be exercised with cash or as a net exercise. Senior Secured Financing Facility, Term Warehouse Financing Facilities and Repurchase Agreements Borrowings under the Company’s senior secured financing facility, term warehouse facilities and repurchase agreements senior secured financing facility, term warehouse facilities and December 31, 2021 December 31, 2020 Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Senior Secured Financing Facility Massachusetts Mutual Life Insurance Company (1) $ (3,432 ) $ 170,791 9 5.75% $ 29,314 $ 239,385 17 5.75% CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 18,875 37,167 3 2.85% 12,258 20,000 1 2.66% Morgan Stanley Mortgage Capital Holdings LLC (4) 47,896 64,860 3 2.03% — — — —% Total $ 63,339 $ 272,818 $ 41,572 $ 259,385 (1) Includes $3.4 million and $4.0 million of deferred debt issuance costs at December 31, 2021 and December 31, 2020, respectively. There was no outstanding balance at December 31, 2021. (2) Outstanding borrowings include accrued interest payable. (3) Includes $1.8 million and $1.3 million of deferred debt issuance costs at December 31, 2021 and 2020, respectively, which includes 356,000 (4) Includes $2.2 million of deferred debt issuance costs at December 31, 2021. The following table shows information about the amount at risk under the warehouse financing facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2021: CRE - Term Warehouse Financing Facilities JPMorgan Chase Bank, N. A. $ 16,329 2.8 years 2.85% Morgan Stanley Mortgage Capital Holdings LLC $ 14,871 2.8 years 2.03% (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. The Company was in compliance with all financial covenants in each agreement at December 31, 2021. Senior Secured Financing Facility On July 31, 2020, an indirect, wholly owned subsidiary (“Holdings”), along with its direct wholly owned subsidiary (the “Borrower”), of the Company entered into a $250.0 million Loan and Servicing Agreement (the “MassMutual Loan Agreement”) with MassMutual and the other lenders party thereto (the “Lenders”). The asset-based revolving loan facility (the “MassMutual Facility”) provided under the MassMutual Loan Agreement will be used to finance the Company’s core CRE lending business. The MassMutual Facility has an interest rate of 5.75% per annum payable monthly. The MassMutual Facility matures on July 31, 2027. The Company paid a commitment fee as well as other reasonable closing costs. The loans under the MassMutual Facility are available for drawing during the first two years of the MassMutual Facility (the “Availability Period”). During the Availability Period, an unused commitment fee of 0.50% per annum (payable monthly) on unused commitments under the MassMutual Loan Agreement is payable for each day on which less than 75% of the total commitment is drawn. Pursuant to the MassMutual Loan Agreement, the Borrower’s obligations under the MassMutual Loan Agreement are secured by the Borrower’s assets and Holdings’ equity interests in the Borrower, including all distributions, proceeds and profits from Holdings’ interests in the Borrower. In September 2020, the MassMutual Loan Agreement was amended pursuant to which (i) the i nitial p ortfolio a ssets w ere revised and an agreed advance rate for each i nitial p ortfolio a sset (each, an “Initial Portfolio Asset Advance Rate”) was set, and (ii) the revolving loan facility under the MassMutual Loan Agreement was amended to require the i nitial l ender (currently MassMutual) to provide a specific advance rate for any future e ligible p ortfolio a ssets and to limit the aggregate total amount of a dvances outstanding at any time to both the t otal f acility a mount and, in lieu of a 55 % LTV, a b orrowing b ase as of any required date of determination equal to the sum of, in each case, the product of the advance rate for such e ligible p ortfolio a sset (including in respect of the i nitial p ortfolio a ssets, the applicable Initial Portfolio Asset Advance Rate therefor) and the then determined v alue of such e ligible p ortfolio a sset. In May 2021, the MassMutual Loan Agreement was amended pursuant to which (i) Mass Mutual consented to Borrower’s formation of certain subsidiaries to hold real estate and (ii) such subsidiaries agreed to entered into guaranty agreements in favor of the secured parties under the Mass Mutual Loan Agreement. In connection with the MassMutual Loan Agreement, the Company entered into a Guaranty (the “MassMutual Guaranty”) among the Company, Exantas Real Estate Funding 2018-RSO6 Investor, LLC (“RSO6”), Exantas Real Estate Funding 2019-RSO7 Investor, LLC (“RSO7”) and Exantas Real Estate Funding 2020-RSO8 Investor, LLC (“RSO8”), each an indirect, wholly owned subsidiary of the Company, in favor of the secured parties under the MassMutual Loan Agreement. As of December 31, 2021, RSO6 and RSO7 no longer exist. The MassMutual Loan Agreement contains events of default, subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of transaction. CRE - Term Warehouse Financing Facilities In February 2012, a wholly-owned subsidiary entered into a master repurchase and securities agreement (the “2012 Facility”) with Wells Fargo to finance the origination of CRE loans. In July 2018, the subsidiary entered into an amended and restated master repurchase agreement (the “2018 Facility”), in exchange for an extension fee and other reasonable costs, that maintained the $250.0 million maximum facility amount and extended the term of the facility to July 2020 with three one-year In April 2018, the Company’s indirect wholly-owned subsidiary entered into a master repurchase agreement (the “Barclays Facility”) with Barclays to finance the origination of CRE loans. In connection with the Barclays Facility, the Company entered into a guaranty agreement (the “Barclays Guaranty”) pursuant to which the Company fully guaranteed all payments and performance under the Barclays Facility. As of December 31, 2021, there have been two amendments on the Barclays Facility and three amendments of the Barclays Guaranty. In May 2020, the Company entered into an amendment to the Barclays Guaranty that revised its minimum equity financial covenant as of March 1, 2020. Barclays also provided a framework to avoid credit-based markdowns for approximately four months, ending August 31, 2020. In October 2020, the Company entered into an amendment to the Barclays Guaranty that revised a covenant definition so that credit losses are determined in accordance with a risk rating-based methodology. In October 2021, the Barclays Facility and the Barclays Guaranty were amended to extend the revolving period of the facility to October 2022 and to modify the guaranty to limit financial covenants to be applicable when there are outstanding transactions. The Barclays Facility contains margin call provisions that provide Barclays with certain rights when there has been a decline in the value of purchased assets. Under these circumstances, Barclays may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset that resulted in the margin call. In connection with the Barclays Facility, the Company fully guaranteed all payments and performance under the Barclays Facility pursuant to the Barclays Guaranty. The Barclays Guaranty includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total indebtedness to equity and EBITDA requirements. Also, ACRES RF, the direct owner of the wholly-owned subsidiary borrower, executed a pledge and security agreement with Barclays whereby it agreed to pledge and grant to Barclays a continuing security interest in any and all of its right, title and interest in and to the wholly-owned subsidiary, including all distributions, proceeds, payments, income and profits from its interests in the wholly-owned subsidiary. The Barclays Facility contains events of default , subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the Barclay Facility and the liquidation by Barclays of purchased assets then subject to the Barclays Facility. In October 2018, an indirect wholly-owned subsidiary of the Company entered into a master repurchase agreement (the “JPMorgan Chase Facility”) with JPMorgan Chase to finance the origination of CRE loans. In connection with the JPMorgan Chase Facility, the Company entered into a guarantee agreement (the “JPMorgan Chase Guarantee”) pursuant to which the Company fully guaranteed all payments and performance under the JPMorgan Chase Facility. In May 2020, the Company entered into an amendment to the JPMorgan Chase Guarantee that revised its minimum equity financial covenant as of February 29, 2020. In October 2020, the Company entered into an amendment to the JPMorgan Chase Guarantee that revised a covenant definition so that credit losses are determined in accordance with a risk rating-based methodology . $250.0 million The JPMorgan Chase Facility contains margin call provisions that provide JPMorgan Chase with certain rights if the value of purchased assets declines. Under these circumstances, JPMorgan Chase may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset(s) that resulted in the margin call. In connection with the JPMorgan Chase Facility, the Company guaranteed the payment and performance under the JPMorgan Chase Facility pursuant to the JPMorgan Chase Guarantee subject to a limit of 25% of the then currently unpaid aggregate repurchase price of all purchased assets. The JPMorgan Chase Guarantee includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total indebtedness to equity and EBITDA requirements. Also, ACRES RF, the direct owner of the wholly-owned subsidiary borrower, executed a pledge agreement with JPMorgan Chase pursuant to which it pledged and granted to JPMorgan Chase a continuing security interest in any and all of its right, title and interest in and to the wholly-owned subsidiary, including all distributions, proceeds, payments, income and profits from its interests in the wholly-owne |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 13 - SHARE ISSUANCE AND REPURCHASE In May 2021, and subsequently in June 2021, the Company issued a total of 4.6 million shares of 7.875% Series D Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”) at a public offering price of $25.00 per share. The Company received net proceeds of $110.4 million after $4.6 million of underwriting discounts and other offering expenses. Dividends are payable quarterly in arrears at the end of January, April, July and October. The Series D Preferred Stock has no maturity date and the Company is not required to redeem the Series D Preferred Stock at any time. On or after May 21, 2026, the Company may, at its option, redeem the Series D Preferred Stock, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. On October 4, 2021, the Company and the Manager entered into an Equity Distribution Agreement with JonesTrading Institutional Services LLC, as placement agent (“JonesTrading”), pursuant to which the Company may issue and sell from time to time up to 2.2 million shares of the Series D Preferred Stock. Sales of the Series D Preferred Stock may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 of the Securities Act of 1933, as amended, including without limitation, sales made directly on the New York Stock Exchange, on any other existing trading market for the shares or to or through a market maker. Subject to the terms of the Company’s notice, JonesTrading may also sell the shares by any other method permitted by law, including but not limited to in privately negotiated transactions. The Company will pay JonesTrading a commission up to 3.0% of the gross proceeds from the sales of the Series D Preferred Stock pursuant to the agreement. The terms and conditions of the agreement include various representations and warranties, conditions to closing, indemnification rights and obligations of the parties and termination provisions. During the year ended December 31, 2021, the Company received net proceeds of approximately $194,000 from the issuance of 7,857 shares of Series D Preferred Stock governed by the agreement. On or after July 30, 2024, the Company may, at its option, redeem its 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), in whole or in part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. Effective July 30, 2024 and thereafter, the Company will pay cumulative distributions on the Series C Preferred Stock at a floating rate equal to three-month LIBOR plus a spread of 5.927% per annum based on the $25.00 liquidation preference, provided that such floating rate shall not be less than the initial rate of 8.625% at any date of determination. At December 31, 2021, the Company had 4.8 million shares of Series C Preferred Stock and 4.6 million shares of Series D Preferred Stock outstanding, with weighted average issuance prices, excluding offering costs, of $25.00. In March 2016, the board of directors (the “Board”) approved a securities repurchase plan and i n November 2020, the Board reauthorized and approved the continued use of this plan to repurchase up to $20.0 million of the outstanding shares of the Company’s common stock. Additionally, the Board authorized the Company to enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 (“the Exchange Act”). In July 2021, the authorized amount was fully utilized. In November 2021, the Board authorized and approved the continued use of its existing share repurchase program to repurchase an additional $20.0 million of the outstanding shares of the Company's common stock. Under the share repurchase program, the Company intends to repurchase shares through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 and 10b5-1 of the Exchange Act. During the years ended December 31, 2021 and 2020, the Company repurchased $18.4 million and $5.4 million of its common stock, representing approximately 1,346,424 and 535,485 shares, respectively. At December 31, 2021, $16.3 million remains available under this repurchase plan. In connection with the Note and Warrant Purchase Agreement, the 12.00% Senior Unsecured Notes give Oaktree and MassMutual warrants to purchase an aggregate of up to 1,166,653 shares of common stock at an exercise price of $0.03 per share, subject to certain potential adjustments. On July 31, 2020, concurrently with the issuance of the 12.00% Senior Unsecured Notes, the Company issued to Oaktree warrants to purchase 391,995 shares of common stock for an aggregate purchase price of $42.0 million and issued to MassMutual warrants to purchase 74,666 shares of common stock for an aggregate purchase price of $8.0 million. The warrants are recorded in additional paid-in capital on the consolidated balance sheet at their fair value of $3.1 million at issuance. At any time and from time to time prior to July 31, 2022, the Company may elect to issue to Oaktree and MassMutual warrants to purchase an additional 699,992 shares of the common stock for a purchase price equal to the principal amount of the 12.00% Senior Unsecured Notes being issued. The warrants are immediately exercisable on issuance and expire seven years from the issuance date. The warrants can be exercised with cash or as a net exercise. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 14 - SHARE-BASED COMPENSATION In June 2021, the Company’s shareholders approved the ACRES Commercial Realty Corp. Third Amended and Restated Omnibus Equity Compensation Plan (the “Omnibus Plan”) and the ACRES Commercial Realty Corp. Manager Incentive Plan (the “Manager Plan” and together with the Omnibus Plan, the “Plans”). The Omnibus Plan was amended (i) increase the number of shares authorized for issuance by an additional 1,100,000 shares of common stock less any shares of common stock issued or subject to awards granted under the Manager Plan; and (ii) extend the expiration date of the Omnibus Plan from June 2029 to June 2031. The maximum number of shares that may be subject to awards granted under the Omnibus Plan and the Manager Plan, determined on a combined basis, will be 1,700,817 shares of common stock. The Company recognized stock-based compensation expense of $1.7 million, $3.1 million and $2.2 million during the years ended December 31, 2021 , respectively, related to restricted stock. The following table summarizes the Company’s restricted common stock transactions: Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2021 11,610 $ 6.46 Issued 333,329 17.39 Vested (11,610 ) 6.46 Forfeited — — Unvested shares at December 31, 2021 333,329 $ 17.39 The unvested restricted common stock shares are expected to vest during the following years : Year Shares 2022 83,331 2023 83,331 2024 83,331 2025 83,336 Total 333,329 The shares issued during the year ended December 31, 2021 will vest in installments over a four-year The following table summarizes the status of the Company’s vested stock options at December 31, 2021: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2021 3,333 $ 76.80 Vested — — Exercised — — Forfeited — — Expired (3,333 ) 76.80 Vested at December 31, 2021 — $ — — $ — There were no options granted during the years ended December 31, 2021 or 2020. The outstanding stock options had contractual terms of ten years and expired in May 2021. Under the Company’s Fourth Amended and Restated Management Agreement, as amended (“Management Agreement”), incentive compensation is paid quarterly. Up to 75% of the incentive compensation is paid in cash and at least 25% is paid in the form of an award of common stock recorded in management fees on the consolidated statements of operations. No incentive compensation was paid to the Manager for the years ended December 31, 2021 and 2020. During the year ended December 31, 2019, the Company incurred incentive compensation payable to the Prior Manager of $606,000 of which $455,000 was paid in cash and $151,000, representing 4,435 shares, was paid in common stock. The Omnibus Plan and the Manager Plan are administered by the compensation committee of our Board (the “Compensation Committee”). In 2020, the Compensation Committee and the Board created parameters for equity awards, whereby they are no longer discretionary but are now based upon the Company’s achievement of performance parameters using book value of the common stock as the appropriate benchmark. See Note 18 for a description of awards made under the Manager Plan. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 15 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2021 2020 2019 Net income (loss) from continuing operations $ 33,923 $ (197,713 ) $ 36,217 Net income allocated to preferred shares (15,887 ) (10,350 ) (10,350 ) Net income (loss) from continuing operations allocable to common shares 18,036 (208,063 ) 25,867 Net loss from discontinued operations, net of tax — — (251 ) Net income (loss) allocable to common shares $ 18,036 $ (208,063 ) $ 25,616 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 9,269,607 10,566,904 10,476,704 Weighted average number of warrants outstanding (1) 466,661 196,357 — Total weighted average number of common shares outstanding - basic 9,736,268 10,763,261 10,476,704 Effect of dilutive securities - unvested restricted stock 26,949 — 80,081 Weighted average number of common shares outstanding - diluted 9,763,217 10,763,261 10,556,785 Net income (loss) per common share - basic: Continuing operations $ 1.85 $ (19.33 ) $ 2.47 Discontinued operations — — (0.02 ) Net income (loss) per common share - basic $ 1.85 $ (19.33 ) $ 2.45 Net income (loss) per common share - diluted: Continuing operations $ 1.85 $ (19.33 ) $ 2.45 Discontinued operations — — (0.02 ) Net income (loss) per common share - diluted $ 1.85 $ (19.33 ) $ 2.43 (1) See Note 13 for further details regarding the warrants. For the 4.50% Convertible Senior Notes, the Company has the intent and ability to settle the principal amount in cash and intends to settle the conversion feature for the amount above the conversion price, or the conversion spread, if any, in common stock. The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted EPS, if applicable. The conversion spread will have a dilutive impact on diluted EPS when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 4.50% Convertible Senior Notes. 8.00% |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 16 - DISTRIBUTIONS In order to qualify as a REIT, the Company must currently distribute at least 90% of its taxable income. In addition, the Company must distribute 100% of its taxable income in order to not be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation), in certain circumstances the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow funds to make sufficient distribution payments. The Company’s 2022 dividends will be determined by the Company’s Board, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional shares of common stock. For the years ended December 31, 2021 and The following tables present dividends declared (on a per share basis) for the years ended December 31, 2021, 2020 and 2019 with respect to the Company’s common stock, Series C Preferred Stock and Series D Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.825 September 30 October 25 $ 7,967 $ 0.75 June 30 July 26 $ 7,172 $ 0.675 March 31 April 26 $ 6,373 $ 0.60 Series C Preferred Stock Series D Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2021 December 31 January 31, 2022 $ 2,588 $ 0.5390625 January 31, 2022 $ 2,268 $ 0.4921875 September 30 November 1 $ 2,588 $ 0.5390625 November 1 $ 2,264 $ 0.4921875 June 30 July 30 $ 2,588 $ 0.5390625 July 30 $ 1,736 $ 0.3773440 March 31 April 30 $ 2,588 $ 0.5390625 N/A N/A N/A 2020 December 31 February 1, 2021 $ 2,587 $ 0.5390625 N/A N/A N/A March 31, June 30, and September 30 October 25 $ 7,763 $ 1.6171875 N/A N/A N/A 2019 December 31 January 30, 2020 $ 2,587 $ 0.5390625 N/A N/A N/A September 30 October 30 $ 2,588 $ 0.5390625 N/A N/A N/A June 30 July 30 $ 2,587 $ 0.5390625 N/A N/A N/A March 31 April 30 $ 2,588 $ 0.5390625 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2021 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Gain on Derivatives Balance at January 1, 2021 $ (9,978 ) Amounts reclassified from accumulated other comprehensive loss (1) 1,851 Balance at December 31, 2021 $ (8,127 ) (1) Amounts reclassified from accumulated other comprehensive loss are reclassified to interest expense on the Company’s consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 18 - RELATED PARTY TRANSACTIONS Management Agreement In March 2005, the Company entered into a Management Agreement, which was last amended on February 16, 2021, with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations. The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the policies and investment guidelines established by the Company’s Board. The Manager provides its services under the supervision and direction of the Company’s Board. The Manager is responsible for the selection, purchase and sale of the Company’s portfolio investments, its financing activities and providing investment advisory services. The Manager and its affiliates also provide the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12th of the amount of the Company’s equity multiplied by 1.50%; provided, however, that for each calendar month through July 31, 2022, such fee is equal to a minimum of $442,000. Under the Management Agreement, “equity” is equal to the net proceeds from issuances of shares of capital stock (or the value of common shares upon the conversion of convertible securities), after deducting any underwriting discounts and commissions and other expenses and costs relating to such issuance, plus or minus the Company’s retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less all amounts the Company has paid for common stock and preferred stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the Company’s independent directors. • Incentive compensation, calculated quarterly until the quarter ended December 31, 2022 as follows: (A) 20% of the amount by which the Company’s core earnings (as defined in the Management Agreement) for a quarter exceeds the product of (i) the weighted average of (x) the book value divided by 10,293,783 and (y) the per share price (including the conversion price, if applicable) paid for the Company’s common shares in each offering (or issuance, upon the conversion of convertible securities) by it subsequent to September 30, 2017, multiplied by (ii) the greater of (x) 1.75% and (y) 0.4375% plus one-fourth of the Ten Year Treasury Rate for such quarter; multiplied by (B) the weighted average number of common shares outstanding during such quarter; subject to adjustment (a) to exclude events pursuant to changes in GAAP or the application of GAAP as well as non-recurring or unusual transactions or events, after discussion between the Manager and the independent directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events, and (b) to deduct an amount equal to any fees paid directly by a TRS (or any subsidiary thereof) to employees, agents and/or affiliates of the Manager with respect to profits of such TRS (or subsidiary thereof) generated from the services of such employees, agents and/or affiliates, the fee structure of which shall have been approved by a majority of the independent directors and which fees may not exceed 20% of the net income (before such fees) of such TRS (or subsidiary thereof). With respect to each fiscal quarter commencing with the quarter ending December 31, 2022, an incentive management fee calculated and payable in arrears in an amount, not less than zero, equal to • for the first full calendar quarter ending December 31, 2022 , the product of (a) 20% and (b) the excess of (i) core earnings of the Company for such calendar quarter, over (ii) the product of (A) the Company’s book value equity as of the end of such calendar quarter, and (B) 7% per annum; • for each of the second, third and fourth full calendar quarters following the calendar quarter ending December 31, 2022, the excess of (1) the product of (a) 20% and (b) the excess of (i) core earnings of the Company for the calendar quarter(s) following September 30, 2022, over (ii) the product of (A) the Company’s book value equity in the calendar quarter(s) following September 30, 2022, and (B) 7% • for each calendar quarter thereafter, the excess of (1) the product of (a) 20% and (b) the excess of (i) core earnings of the Company for the previous 12-month period, over (ii) the product of (A) the Company’s book value equity in the previous 12-month period, and (B) 7% per annum, over (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of such previous 12-month period; provided , however, that no incentive compensation shall be payable with respect to any calendar quarter unless Core Earnings for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters from September 30, 2022) in the aggregate is greater than zero. • Per loan underwriting and review fees in connection with valuations of and potential investments in certain subordinate commercial mortgage pass-through certificates, in amounts approved by a majority of the independent directors. • Reimbursement of expenses for personnel of the Manager or its affiliates for their services in connection with the making of fixed-rate commercial real estate loans by the Company, in an amount equal to one percent of the principal amount of each such loan made. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager and its affiliates that relate directly to the Company and its operations. • Reimbursement of the Manager’s and its affiliates’ expenses for (A) wages, salaries and benefits of the Company’s Chief Financial Officer, and (B) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel’s percentage of time allocated to its operations. Incentive compensation is calculated and payable quarterly to the Manager to the extent it is earned. Up to 75% of the incentive compensation is payable in cash and at least 25% is payable in the form of an award of common stock. The Manager may elect to receive more than 25% in incentive compensation in common stock. All shares are fully vested upon issuance, however, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable unless the Management Agreement is terminated. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the 30-day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the 30-day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, at the fair market value as reasonably determined in good faith by the Board of the Company. The Management Agreement’s current contract term ends on July 31, 2023 and the agreement provides for automatic one year renewals on such date and on each July 31 thereafter until terminated. The Company’s Board reviews the Manager’s performance annually. The Management Agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company’s independent directors, or by the affirmative vote of the holders of at least a majority of the outstanding shares of its common stock, based upon unsatisfactory performance that is materially detrimental to the Company or a determination by its independent directors that the management fees payable to the Manager are not fair, subject to the Manager’s right to prevent such a compensation termination by accepting a mutually acceptable reduction of management fees. The Company’s Board must provide 180 days’ prior notice of any such termination. If the Company terminates the Management Agreement, the Manager is entitled to a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive compensation earned by the Manager during the two 12-month periods immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter before the date of termination. The Company may also terminate the Management Agreement for cause with 30 days’ prior written notice from its Board. No termination fee is payable in the event of a termination for cause. The Management Agreement defines cause as: • the Manager’s continued material breach of any provision of the Management Agreement following a period of 30 days after written notice thereof; • the Manager’s fraud, misappropriation of funds, or embezzlement against the Company; • the Manager’s gross negligence in the performance of its duties under the Management Agreement; • the dissolution, bankruptcy or insolvency, or the filing of a voluntary bankruptcy petition, by the Manager; or • a change of control (as defined in the Management Agreement) of the Manager if a majority of the Company’s independent directors determines, at any point during the 18 months following the change of control, that the change of control was detrimental to the ability of the Manager to perform its duties in substantially the same manner conducted before the change of control. Cause does not include unsatisfactory performance that is materially detrimental to the Company’s business. The Manager may terminate the Management Agreement at its option, (A) in the event that the Company defaults in the performance or observance of any material term, condition or covenant contained in the Management Agreement and such default continues for a period of 30 days after written notice thereof, or (B) without payment of a termination fee by the Company, if it becomes regulated as an investment company under the Investment Company Act of 1940, with such termination deemed to occur immediately before such event. Relationship with ACRES Capital Corp. and certain of its Subsidiaries Relationship with ACRES Capital Corp. and certain of its Subsidiaries. The Manager is a subsidiary of ACRES Capital Corp., of which Andrew Fentress, the Company’s Chairman, serves as Managing Partner and Mark Fogel, the Company’s President, Chief Executive Officer and Director, serves as Chief Executive Officer and President. Mr. Fentress and Mr. Fogel are also shareholders and board members of ACRES Capital Corp. Effective on July 31, 2020, the Company has a Management Agreement with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations and receives management fees. For the years ended December 31, 2021 and 2020, the Manager earned base management fees of approximately $6.1 million and $2.2 million. No incentive compensation was earned for the years ended December 31, 2021 and 2020. At December 31, 2021 and 2020, $561,000 and $442,000 of base management fees were payable by the Company to the Manager. There was no incentive compensation payable at December 31, 2021 and 2020. The Manager and its affiliates provided the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimbursed the Manager’s expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, and (b) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel’s percentage of time allocated to the Company’s operations. The Company reimbursed out-of-pocket expenses and certain other costs incurred by the Manager that related directly to the Company’s operations. For the years ended December 31, 2021 and 2020, the Company reimbursed the Manager $4.7 million and $1.8 million for all such compensation and costs. At December 31, 2021 and 2020, the Company had payables to the Manager pursuant to the Management Agreement totaling approximately $1.2 million and $380,000, respectively, related to such compensation and costs. The Company’s base management fee payable and expense reimbursements payable were recorded in management fee payable and accounts payable and other liabilities on the consolidated balance sheet, respectively. On July 31, 2020, ACRES RF, a direct, wholly owned subsidiary of the Company, provided a $12.0 million loan (the “ACRES Loan”) to ACRES Capital Corp. evidenced by the Promissory Note from ACRES Capital Corp. The ACRES Loan accrues interest at 3.00% per annum payable monthly. The monthly amortization payment is $25,000. The ACRES Loan matures in July 2026, subject to two one-year During the years ended December 31, 2021 and 2020, the Company recorded interest income of $357,000 and $153,000 on the ACRES Loan in other income on the consolidated statements of operations. At December 31, 2021 and 2020, the ACRES Loan had a principal balance of $11.6 million and $11.9 million recorded in loan receivable - related party on the consolidated balance sheet. At December 31, 2021 and 2020, the ACRES loan had no interest receivable. The Company did not originate any loans that were refinanced from loans originated by affiliates of the Manager during the year ended December 31, 2021. During the year ended December 31, 2020, the Company originated two CRE whole loans with a total par value of $24.0 million that were refinanced from loans originated by affiliates of the Manager. At December 31, 2021, the Company retained equity in three securitization entities that were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for executing this transaction and was not separately compensated for managing the securitization entity and its assets. Relationship with ACRES Capital Servicing LLC. Under the MassMutual Loan Agreement, ACRES Capital Servicing LLC (“ACRES Capital Servicing”), an affiliate of ACRES Capital Corp. and the Manager, serves as the portfolio servicer. Additionally, ACRES Capital Servicing served as the special servicer of XAN 2019-RSO7 and serves as special servicer of XAN 2020-RSO8, XAN 2020-RSO9, ACR 2021-FL1, and ACR 2021-FL2. During the year ended December 31, 2021, ACRES Capital Servicing received no portfolio servicing fees. During the year ended December 31, 2021, ACRES Capital Servicing received $14,000 in special servicing fees recorded as a reduction to interest income in the consolidated statements of operations. During the year ended December 31, 2020, ACRES Capital Servicing received no portfolio servicing fees or special servicing fees. Relationship with ACRES Collateral Manager, LLC. ACRES Collateral Manager, LLC, an affiliate of ACRES Capital Corp. and the Manager, serves as the collateral manager of ACR 2021-FL1 and ACR 2021-FL2, a role for which it waived its fee. Relationship with ACRES Development, LLC. ACRES Development Management, LLC (“DevCo”) is a wholly owned subsidiary of ACRES Capital Corp., the parent of the Manager. DevCo acts in various capacities as a co-developer or owner’s representative for direct equity investments within the Company’s portfolio. In November 2021 and December 2021, the joint venture entities of the two CRE equity investments acquired through direct investment entered into development agreements with DevCo (the “Development Agreements”). Pursuant to the Development Agreements, DevCo agreed to manage the development of the projects associated with each equity investment in accordance with a development standard in exchange for fees equal to between Relationship with ACRES Share Holdings, LLC. In June 2021, the Company’s Manager Incentive Plan was approved by its shareholders, which authorized up to 1,100,000 shares of common stock for issuance to the Manager (less shares of common stock issued or subject to awards under the Omnibus Plan). ACRES Share Holdings, LLC, an affiliate of ACRES Capital Corp. and the Manager, was granted 299,999 shares during the year ended December 31, 2021, which will vest 25% for four years, on each anniversary of the issuance date. See Note 14 for additional details. Relationship with C-III and certain of its Subsidiaries Relationship with C-III and certain of its Subsidiaries. The Prior Manager was a wholly-owned subsidiary of Resource America, Inc. (“Resource America”), which is a wholly-owned subsidiary of C-III. C-III is indirectly controlled and partially owned by Island Capital Group LLC (“Island Capital”). Effective July 31, 2020, in connection with the ACRES acquisition, Andrew L. Farkas, the managing member of Island Capital and the chairman and chief executive officer of C-III, resigned his position as the Company’s Chairman. In addition, Robert C. Lieber and Matthew J. Stern, each executive managing directors of both C-III and Island Capital, resigned their positions as the Company’s Chief Executive Officer and President, respectively. Lastly, Jeffrey P. Cohen, president of C-III and Island Capital, resigned his position as a member of the Board. Those officers and the Company’s other executive officers were also officers of the Company’s Prior Manager, Resource America, C-III and/or affiliates of those companies. Prior to September 8, 2020, a non-employee director of the Company held the position of Executive Vice President at Resource America. Prior to July 31, 2020, the Company had a management agreement with the Prior Manager pursuant to which the Prior Manager provided the day-to-day management of the Company’s operations and received substantial fees. For the years ended 2020 and 2019, the Prior Manager earned base management fees of $3.8 million and $8.3 million, respectively. The Prior Manager did not earn incentive compensation for the year ended December 31, 2020. For the year ended December 31, 2019, the Prior Manager earned incentive compensation of $606,000, of which $455,000 was paid in cash and $151,000 was paid in common stock. At December 31, 2020, there were no base management fees payable by the Company to the Prior Manager. There was no incentive compensation payable at December 31, 2020. The Prior Manager and its affiliates provided the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimbursed the Prior Manager’s and its affiliates’ expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, (b) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel’s percentage of time allocated to the Company’s operations, and (c) personnel principally devoted to the Company’s ancillary operating subsidiaries. The Company reimbursed out-of-pocket expenses and certain other costs incurred by the Prior Manager and its affiliates that related directly to the Company’s operations. For the years ended December 31, 2020 and 2019, the Company reimbursed the Prior Manager $4.1 million and $4.2 million, respectively, for all such compensation and costs. The Company had no payables to Resource America and its subsidiaries at December 31, 2020. The Company’s base management fee payable and expense reimbursements payable were recorded in management fee payable and accounts payable and other liabilities on the consolidated balance sheets, respectively. At December 31, 2021, the Company retained equity in four securitization entities, respectively, that were structured for the Company by the Prior Manager, although three of the securitization entities were substantially liquidated as of December 31, 2021. Under the Management Agreement, the Prior Manager was not separately compensated by the Company for executing these transactions and was not separately compensated for managing the securitizations entities and their assets. Relationship with Resource Real Estate, LLC. Resource Real Estate, LLC (“Resource Real Estate”), an indirect wholly-owned subsidiary of Resource America and C-III, originated, financed and managed the Company’s CRE loan portfolio until the ACRES acquisition on July 31, 2020. The Company reimbursed Resource Real Estate for loan origination costs associated with all loans originated. Resource Real Estate served as special servicer for the following liquidated real estate securitization transactions, which provided financing for CRE loans: (i) Resource Capital Corp. 2014-CRE2, Ltd., a $353.9 million securitization that closed in July 2014 and liquidated in August 2017; (ii) Resource Capital Corp. 2015-CRE3, Ltd., a $346.2 million securitization that closed in February 2015 and liquidated in August 2018; (iii) Resource Capital Corp. 2015-CRE4, Ltd., a $312.9 million securitization that closed in August 2015 and liquidated in July 2018; and (iv) Resource Capital Corp. 2017-CRE5, Ltd. (“RCC 2017-CRE5”), a $376.7 million securitization that closed in July 2017 and liquidated in July 2019. Resource Real Estate also served as special servicer for XAN 2020-RSO8, a $522.6 million securitization that closed in March 2020. Resource Real Estate did not earn any special servicing fees during the years ended December 31, 2020 and 2019. Relationship with C-III Commercial Mortgage LLC and C3AM. In May 2019, ACRES RF entered into a Mortgage Loan Sale and Purchase Agreement (the “May 2019 Loan Acquisition Agreement”) with C-III Commercial Mortgage LLC (“C-III Commercial Mortgage”), a wholly-owned subsidiary of C-III, that provided for the acquisition by ACRES RF of certain CRE loans on a servicing-released basis at par, plus accrued and unpaid interest on each loan for an aggregate purchase price of $197.6 million. In accordance with the terms of the May 2019 Loan Acquisition Agreement, C-III Commercial Mortgage retains its title to all exit fees in excess of 0.50% of the outstanding principal balance. During the years ended December 31, 2021 , C-III Commercial Mortgage earned approximately $361,000, $74,000 and $108,000, respectively, in exit fees. The Company had no outstanding payables to C-III Commercial Mortgage of at December 31, 2021 and outstanding payables of $48,000 at December 31, 2020. C-III Asset Management LLC (“C3AM”) served as the primary servicer for the CRE loans acquired in the May 2019 Loan Acquisition Agreement and for the CRE loans collateralizing RCC 2017-CRE5, XAN 2018-RSO6, a $514.2 million securitization that closed in June 2018 and liquidated in September 2020, and XAN 2019-RSO7, a $687.2 million securitization that closed in April 2019 and liquidated in May 2021. C3AM received servicing fees, payable monthly on an asset-by-asset basis. C3AM served as special servicer for C40, XAN 2018-RSO6 and XAN 2019-RSO7, under which it received a base special servicing fee. On December 31, 2019, C3AM was sold by C-III to an unaffiliated third party. As such, C3AM ceased being a related party under common control effective January 1, 2020. Relationship with Resource Real Estate Opportunity REIT In July 2020, ACRES and the Company entered into agreements with Resource America pursuant to which Resource America provided office space and other office-related services as well as performed an internal audit program. In September 2020, the sublease was assigned from Resource America to Resource Real Estate Opportunity REIT and the internal audit engagement letter was assigned from Resource America to Resource NewCo LLC, a subsidiary of Resource Real Estate Opportunity REIT. A former non-employee director of the Company is an executive at, and a director of, Resource Real Estate Opportunity REIT. During the years ended December 31, 2021 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 19 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company’s financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2020: Assets: Investment securities available-for-sale $ — $ — $ 2,080 $ 2,080 In accordance with guidance on fair value measurements and disclosures, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained for investment securities available-for-sale and derivatives from third-party pricing sources. The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2021 $ 2,080 Included in earnings 878 Sales (2,958 ) Balance, December 31, 2021 $ — In November 2020, the Company received the deed-in-lieu of foreclosure on a property that formerly collateralized a CRE whole loan. The property was appraised and determined to have a total fair value of $39.8 million, comprising a building, building improvements, site improvements, furniture and fixtures, a below market lease intangible asset, a franchise intangible asset and value relating to the existing customer list, at the time of acquisition. In October 2021, the Company received the deed in lieu of foreclosure on a property that formerly collateralized a CRE whole loan. The property was appraised and determined to have a fair value of $17.6 million at the time of acquisition. In November 2019, the Company foreclosed on its remaining legacy CRE loan held for sale, and obtained ownership of the underlying property, which remained classified as an asset held for sale on the consolidated balance sheets, recorded at the lower of cost or fair market value. The property was sold in December 2020 for proceeds of $10.3 million. During the years ended December 31, 2020 and 2019, the Company recorded losses of and , respectively, on the remaining CRE asset held for sale, which included protective advances to cover borrower operating losses of and respectively. During the year ended December 31, 2020, the loss was primarily attributable to fair value charges of $6.2 million in connection with the offers received on the property adjusted for the estimated costs to sell. The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair values of the Company’s short-term financial instruments such as cash and cash equivalents, restricted cash, accrued interest receivable, principal paydowns receivable, accrued interest payable and distributions payable approximate their carrying values on the consolidated balance sheets. The fair value of the Company’s investment securities available-for-sale are reported in Note 10. The fair values of the Company’s derivative instruments are reported in Note 20. The fair values of the Company’s loans held for investment are measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Par values of loans with variable interest rates are expected to approximate fair value unless evidence of credit deterioration exists, in which case the fair value approximates the par value less the loan’s allowance estimated through individual evaluation. Fair values of loans with fixed rates are calculated using the net present values of future cash flows, discounted at market rates. The Company’s floating-rate CRE loans had interest rates from 3.01% to 9.00% and 4.10% to 9.75% at December 31, 2021 and 2020, respectively. The fair value of the Company’s mezzanine loan is measured by discounting the remaining contractual cash flows using the current interest rates at which similar instruments would be originated for the same remaining maturity. The fair values of the Company’s preferred equity investments were measured by discounting the instruments’ remaining contractual cash flows using current interest rates at which similar instruments would be originated for the same remaining maturities. The Company’s fixed-rate CRE loans were valued using third-party pricing sources. In March 2021, the fixed-rate CRE loans were sold at par for cash proceeds of $4.8 million. The Company’s loan receivable - related party is estimated using a discounted cash flow model. Senior notes in CRE securitizations are estimated using a discounted cash flow model with implied yields based on trades for similar securities. The fair value of the senior secured financing facility is measured by discounting the facility’s remaining contractual cash flows using the current interest rate at which a similar debt instrument would be issued for the same remaining maturity. The fair value of the senior secured financing facility is estimated using a discounted cash flow model that discounts the expected future cash flows at a rate of 5.75%. At December 31, 2021, there were no borrowings outstanding on the senior secured financing facility. Warehouse financing facilities are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. The fair value of the 4.50% Convertible Senior Notes is determined using a discounted cash flow model that discounts the issuance’s contractual future cash flows using the current interest rate on similar debt issuances with similar terms and similar remaining maturities that do not have a conversion option. The Company’s 5.75% Senior Unsecured Notes are estimated and 12.00% Senior Unsecured Notes were estimated by using a discounted cash flow model. The fair values of the junior unsubordinated notes RCT I and RCT II are estimated by using a discounted cash flow model. The fair values of the Company’s remaining financial and non-financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands, except amount in footnotes): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2021: Assets: CRE whole loans $ 1,869,301 $ 1,889,499 $ — $ — $ 1,889,499 CRE mezzanine loan $ 4,445 $ 4,700 $ — $ — $ 4,700 Loan receivable - related party $ 11,575 $ 10,407 $ — $ — $ 10,407 Liabilities: Senior notes in CRE securitizations $ 1,466,499 $ 1,473,893 $ — $ — $ 1,473,893 Warehouse financing facilities $ 66,771 $ 68,905 $ — $ — $ 68,905 4.50% Convertible Senior Notes $ 86,431 $ 87,873 $ — $ — $ 87,873 5.75% Senior Unsecured Notes (1) $ 146,607 $ 148,125 $ — $ — $ 148,125 Junior subordinated notes $ 51,548 $ 41,424 $ — $ — $ 41,424 At December 31, 2020: Assets: CRE whole loans $ 1,477,295 $ 1,513,822 $ — $ — $ 1,513,822 CRE mezzanine loan $ 4,399 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,988 $ 27,650 $ — $ — $ 27,650 CRE whole loans, fixed-rate (2) $ 4,809 $ 4,809 $ — $ — $ 4,809 Loan receivable - related party $ 11,875 $ 10,184 $ — $ — $ 10,184 Liabilities: Senior notes in CRE securitizations $ 1,027,929 $ 1,030,854 $ — $ — $ 1,030,854 Senior secured financing facility $ 29,314 $ 33,360 $ — $ — $ 33,360 Warehouse financing facility $ 12,258 $ 13,516 $ — $ — $ 13,516 4.50% Convertible Senior Notes $ 137,252 $ 132,437 $ — $ — $ 132,437 12.00% Senior Unsecured Notes $ 46,426 $ 58,910 $ — $ — $ 58,910 Junior unsubordinated notes $ 51,548 $ 31,955 $ — $ — $ 31,955 (1) Carrying value includes deferred debt issuance costs of $307,000 from the redeemed 12.00% Senior Unsecured Notes. (2) Classified as other assets on the consolidated balance sheet. |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 20 - MARKET RISK AND DERIVATIVE INSTRUMENTS The Company is affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” When deemed appropriate, the Company used derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments were interest rate risk and market price risk. The Company also historically managed its interest rate risk with interest rate swaps. Interest rate swaps are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. The Company seeks to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable-rate assets with variable-rate borrowings. The Company classified its interest rate swap contracts as cash flow hedges, which are hedges that eliminate the risk of changes in the cash flows of a financial asset or liability. The Company terminated all of its interest rate swap positions associated with its financed CMBS portfolio in April 2020. At termination, the Company realized a loss of $11.8 million. At the Company had losses of $8.5 million and $10.4 million, respectively, recorded in accumulated other comprehensive (loss) income, which will be amortized into earnings over the remaining life of the debt. During the years ended the Company recorded amortization expense, reported in interest expense on the consolidated statements of operations, of $1.9 million and $1.3 million, respectively. At December 31, 2021 and 2020, the Company had an unrealized gain of $347,000 and $438,000, respectively, attributable to two terminated interest rate swaps in accumulated other comprehensive income (loss) on the consolidated balance sheets, to be accreted into earnings over the remaining life of the debt. The Company recorded accretion income, reported in interest expense on the consolidated statements of operations, of $91,000, $92,000 and $91,000 into earnings during the years ended December 31, 2021, 2020, and 2019, respectively. The Company’s prior origination of fixed-rate CRE whole loans exposed it to market pricing risk in connection with the fluctuations of market interest rates. As market interest rates increase or decrease, the fair value of the fixed-rate CRE whole loans will decrease or increase accordingly. In order to mitigate this market price risk, the Company entered into interest rate swap contracts in which it pays a fixed rate of interest in exchange for a variable rate of interest, usually three-month LIBOR. Unrealized gains and losses on the value of these swap contracts were recorded in other income (expense) on the consolidated statements of operations. In December 2020, these interest rate swap contracts were terminated. The following tables present the effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2021, 2020 and 2019: The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2021 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (1,851 ) Derivatives Year Ended December 31, 2020 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Other (expense) income $ (10 ) Interest rate swap contracts, hedging Interest expense $ (1,562 ) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 21 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — At December 31, 2020: Warehouse financing facilities (2) $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities, repurchase agreements and derivatives. (2) The combined fair value of securities and loans pledged against the Company’s various warehouse financing facilities and repurchase agreements was $102.0 million and $20.0 million at December 31, 2021 and 2020, respectively All balances associated with warehouse financing facilities are presented on a gross basis on the Company’s consolidated balance sheets. Certain of the Company’s warehouse financing facilities are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 22 - INCOME TAXES The following table details the components of income taxes at the Company’s TRSs (in thousands): Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense: Current: Federal $ — $ — $ — State — — — Total current — — — Deferred: Federal — — — State — — — Total deferred — — — Total $ — $ — $ — A reconciliation of the income tax expense based upon the statutory tax rate to the effective income tax rate was as follows for the Company’s TRSs for the years presented (in thousands): Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense: Statutory tax $ (66 ) $ (37 ) $ 6 State and local taxes, net of federal benefit (59 ) (3,353 ) 2,716 True-up of prior period tax expense — — 816 Valuation allowance 125 6,407 (5,402 ) Discontinued operations adjustment — — 863 Other items — (3,017 ) 1,001 Total $ — $ — $ — The components of deferred tax assets and liabilities were as follows for the Company’s TRSs (in thousands): December 31, 2021 2020 Deferred tax assets related to: Federal, state and local loss carryforwards $ 14,362 $ 13,764 Charitable contribution carryforward 58 58 Capital loss carryforward 327 327 Equity investments 6,728 7,369 Interest expense limitation 163(j) 202 — Total deferred tax assets 21,677 21,518 Valuation allowance (21,360 ) (21,235 ) Total deferred tax assets, net of valuation allowance $ 317 $ 283 Deferred tax liabilities related to: Amortization of intangibles $ (260 ) $ (252 ) Unrealized gains (57 ) (31 ) Total deferred tax liabilities $ (317 ) $ (283 ) Deferred tax assets, net $ — $ — At December 31, 2021 and 2020, the Company had $61.1 million and $59.4 million, respectively, of gross federal and $1.9 million and $1.6 million, respectively, of gross state and local net operating tax loss carryforwards (a collective deferred tax asset of $14.4 million and $13.8 million, respectively) reported in other assets in the Company’s consolidated balance sheets. The Company also generated a gross capital loss carryforward of $969,000 (tax effected expense of $327,000) in 2021 and 2020. Due to changes in management’s focus regarding the non-core asset classes, the Company determined that it no longer expected to have sufficient forecasted taxable income to completely realize the tax benefits of the deferred tax assets at December 31, 2021 and 2020. Therefore, a full valuation allowance with a tax effected expense of $21.4 million and $21.2 million has been recorded against the deferred tax asset at December 31, 2021 and 2020, respectively. Management will continue to assess its estimate of the amount of deferred tax assets that the Company will be able to utilize. The Company is subject to examination by the Internal Revenue Service for calendar years including and subsequent to 2018, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2018. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 23 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2021: Interest income $ 24,749 $ 25,793 $ 23,986 $ 26,504 Interest expense 13,724 18,702 14,534 14,615 Net interest income $ 11,025 $ 7,091 $ 9,452 $ 11,889 Net income (loss) $ 13,056 $ 13,639 $ (4,928 ) $ 12,156 Net income allocated to preferred shares (2,588 ) (3,568 ) (4,877 ) (4,854 ) Net income (loss) allocable to common shares $ 10,468 $ 10,071 $ (9,805 ) $ 7,302 Net income (loss) per common share - basic $ 1.03 $ 1.04 $ (1.03 ) $ 0.77 Net income (loss) per common share - diluted $ 1.03 $ 1.04 $ (1.03 ) $ 0.76 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2020: Interest income $ 33,290 $ 27,243 $ 24,638 $ 23,072 Interest expense 18,394 12,547 13,033 14,034 Net interest income $ 14,896 $ 14,696 $ 11,605 $ 9,038 Net (loss) income $ (196,521 ) $ (33,400 ) $ 8,159 $ 24,049 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net (loss) income allocable to common shares $ (199,109 ) $ (35,987 ) $ 5,571 $ 21,462 Net (loss) income per common share - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net (loss) income per common share - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 - COMMITMENTS AND CONTINGENCIES The Company may become involved in litigation on various matters due to the nature of the Company’s business activities. The resolution of these matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. In addition, the Company may enter into settlements on certain matters in order to avoid the additional costs of engaging in litigation. Except as discussed below, the Company is unaware of any contingencies arising from such litigation that would require accrual or disclosure in the consolidated financial statements at December 31, 2021. Primary Capital Mortgage, LLC (“PCM”) is subject to potential litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At December 31, 2021 and 2020, no such litigation demand was outstanding. Reserves for such potential litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.3 million and $1.5 million at December 31, 2021 and 2020, respectively. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. Settled and Dismissed Litigation Matters The Company did not have any general litigation reserve at December 31, 2021 or 2020. The Company previously disclosed two consolidated shareholder derivative actions filed in the Court that purported to assert claims on behalf of the Company similar to the claims in the New York State Actions (defined below) (collectively, the “Federal Actions”): (a) by shareholders who declined to make a demand on the Board prior to filing suit (the “Federal Demand Futile Actions”), which comprised a suit filed in January 2017 (the “Greenberg Action”), and another suit filed in January 2017 (the “DeCaro Action”) and (b) by shareholders who served demands on the Board to bring litigation and allege that their demands were wrongfully refused (the “Federal Demand Refused Actions”), which comprised a suit filed in February 2017 (the “McKinney Action”), a suit filed in March 2017 (the “Sherek/Speigel Action”) and a suit filed in April 2017 (the “Sebenoler Action”). In January 2019, the parties to the Federal Actions executed a stipulation and agreement of settlement (the “Federal Actions Settlement Agreement”), which received final approval from the Court on May 17, 2019. Under the Federal Actions Settlement Agreement, the Company agreed to implement certain corporate governance changes and paid $550,000 in plaintiffs’ attorneys’ fees, funded by the Company’s insurers. In exchange for the settlement consideration, the defendants were released from liability for certain claims, including all claims asserted in the Federal Actions. Among other terms and conditions, the Federal Actions Settlement Agreement provided that the defendants deny any and all allegations of wrongdoing and maintained that they have acted lawfully and in accordance with their fiduciary duties at all times. The Company previously disclosed six separate, additional shareholder derivative suits filed in the Supreme Court of New York purporting to assert claims on behalf of the Company (the “New York State Actions”) that were filed on the following dates: December 2015 (the “Reaves Action”); February 2017 (the “Caito Action”); March 2017 (the “Simpson Action”); March 2017 (the “Heckel Action”); May 2017 (the “Schwartz Action”); and August 2017 (the “Greff Action”). Plaintiffs in the Schwartz Action and Greff Action made demands on the Company’s Board before filing suit, but plaintiffs in the Reaves Action, Caito Action, Simpson Action and Heckel Action did not. All of the shareholder derivative suits were substantially similar and alleged that certain of the Company’s current and former officers and directors breached their fiduciary duties, wasted corporate assets and/or were unjustly enriched. Certain complaints asserted additional claims against the Manager and Resource America for unjust enrichment based on allegations that the Manager received excessive management fees from the Company. In June 2019 and July 2019, the Schwartz Action and Greff Action, respectively, were dismissed. In October 2019, the four remaining New York State Actions were dismissed. The Company previously disclosed another shareholder derivative action filed in the United States District Court for the District of Maryland against certain of the Company’s former officers and directors and the Manager (the “Hafkey Action”). The complaint asserted a breach of fiduciary duty claim that was substantially similar to the claims at issue in the Federal Actions. In May 2019, the plaintiff in the Hafkey Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. The Company previously disclosed another shareholder derivative action filed in the Maryland Circuit Court against certain of the Company’s current and former officers and directors, as well as the Manager and Resource America (the “Canoles Action”). The complaint (as amended) in the Canoles Action asserted a variety of claims, including claims for breach of fiduciary duty, unjust enrichment and corporate waste, which were based on allegations substantially similar to those at issue in the Federal Demand Futile Actions. In July 2019, the plaintiff in the Canoles Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. Impact of COVID-19 As discussed in Note 2, the COVID-19 pandemic continues to plague countries throughout the globe as virus variants have emerged. While the U.S. and certain countries around the world have eased restrictions and financial markets and unemployment rates have stabilized to some degree, due in large part to the discovery and distribution of vaccines and other treatments, the pandemic continues to cause uncertainty on the U.S. and global economies, generally, and the CRE business in particular. The reinstatement of nationwide restrictions placed on businesses in response to COVID-19 may cause significant cash flow disruptions across the economy that may impact the Company’s borrowers and their ability to stay current with their debt obligations in the near term. Due to the fluidity of this situation, along with other world events, any prediction as to the ultimate adverse impact of the pandemic on economic and market conditions remains difficult to assess. The Company had no contingent liabilities recorded in connection with the COVID-19 pandemic at December 31, 2021 or 2020. However, the impact of the COVID-19 pandemic has had and may continue to have a long-term and material impact on its results of operations, financial condition and cash flows through the fiscal year 2022. Other Contingencies As part of the May 2017 sale of its equity interest in Pearlmark Mezzanine Realty Partners IV, L.P., the Company entered into an indemnification agreement pursuant to which the Company agreed to indemnify the purchaser against realized losses of up to $4.3 million on one mezzanine loan until its final maturity date in 2020. As a result of the indemnified party’s partial sale of the mezzanine loan, the maximum exposure was reduced to $536,000 in 2019. In October 2020, the mezzanine loan paid off its balance to the indemnified party, resulting in the extinguishment of the Company’s liability. PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At December 31, 2021 and 2020, outstanding demands for indemnification, repurchase or make whole payments totaled $3.3 million. The Company’s estimated exposure for such outstanding claims, as well as unasserted claims, is included in its reserve for mortgage repurchases and indemnifications. Unfunded Commitments Unfunded commitments on the Company’s originated CRE loans generally fall into two categories: (1) pre-approved capital improvement projects; and (2) new or additional construction costs subject, in each case, to the borrower meeting specified criteria. Upon completion of the improvements or construction, the Company would receive additional interest income on the advanced amount. Whole loans had $157.6 million and $67.2 million in unfunded loan commitments at December 31, 2021 and 2020, respectively. Preferred equity investments had $2.5 million in unfunded investment commitments at December 31, 2020. The preferred equity investments paid off during the year ended December 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that, except for the subsequent events referred to in Note 7 and Note 12, there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II ACRES Commercial Realty Corp. Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Adoption of Updated Accounting Guidance Charge to Expense Loans Charged off/Recovered Balance at End of Period Allowance for credit losses: Year Ended December 31, 2021 $ 34,310 $ — $ (21,262 ) $ (4,243 ) $ 8,805 Year Ended December 31, 2020 $ 1,460 $ 3,032 $ 30,815 $ (997 ) $ 34,310 Year Ended December 31, 2019 $ 1,401 $ — $ 59 $ — $ 1,460 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III Real Estate and Accumulated Depreciation | SCHEDULE III ACRES Commercial Realty Corp. Real Estate and Accumulated Depreciation (in thousands) Initial Cost to Company Gross Amount of Which Carried at Close of Period Encumbrances Land Buildings and Improvements Costs Capitalized Subsequent to Acquisition - Improvements Land Buildings and Improvements Total Accumulated Depreciation Year of Construction Date Acquired Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed Hotel property, Northeast region (1)(2) N/A $ — $ 30,944 $ 134 $ — $ 31,078 $ 31,078 $ (1,013 ) 2000 November 2020 34.8 years Office property, Northeast region (1) N/A 8,188 4,706 — 8,188 4,706 12,894 (191 ) 1999 October 2021 36.1 years Office property (held for sale), Northeast region (2)(3) N/A — 17,889 — — 17,846 17,846 — 1928 October 2021 N/A Unimproved land, Northeast region N/A 14,171 — — 14,171 — 14,171 — N/A November 2021 N/A Total $ 22,359 $ 53,539 $ 134 $ 22,359 $ 53,630 $ 75,989 $ (1,204 ) (1) The life on which depreciation in latest statements of comprehensive income is computed was calculated as the weighted average of the useful lives of the building, site improvements and tenant improvements, which comprise the investments in the properties. (2) The property was acquired through a deed in lieu of foreclosure transaction. (3) The property is being held for sale and is evaluated at the lower of cost or fair value. The following table rolls forward our gross investment in real estate and the related accumulated depreciation (in thousands): Years Ended December 31, 2021 2020 2019 Investments in Real Estate: Balance at beginning of period $ 30,944 $ — $ — Additions during period: Acquisitions through deed-in-lieu of foreclosure 17,889 30,944 — Other acquisitions 27,065 — — Improvements, etc. 134 — — Deductions during period: Other (43 ) — — Balance at close of period $ 75,989 $ 30,944 $ — Accumulated Depreciation: Balance at beginning of period $ (112 ) $ — $ — Additions during period: Depreciation expense (1,092 ) (112 ) — Balance at close of period $ (1,204 ) $ (112 ) $ — |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2021 | |
Mortgage Loans On Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV ACRES Commercial Realty Corp. Mortgage Loans on Real Estate At (in thousands, except amounts in footnotes) Type of Loan/ Borrower Description / Location Interest Payment Rates (1) Maturity Date (2) Periodic Payment Terms (3) Prior Liens Face Amount of Loans Net Carrying Amount of Loans (4) Principal Amount of Loans Subject to Delinquent Principal or Interest CRE whole loans: CRE whole loans in excess of 3% of the carrying amount of total loans Borrower A Multifamily/Rock Hill, SC 1M BR + 3.30% FLOOR 0.10% 2025 I/O — $ 67,500 $ 66,792 $ — Borrower B Hotel/Phoenix, AZ 1M BR + 3.83% FLOOR 1.92% 2022 I/O — 56,470 56,362 — CRE whole loans less than 3% of the carrying amount of total loans CRE whole loan (5) Multifamily/ Various 1M BR + 2.70% - 6.00% FLOOR 0.10% - 2.50% 2022-2025 I/O — 1,253,718 1,243,103 — CRE whole loan Office/ Various 1M BR + 2.82% - 5.85% FLOOR 0.10% - 2.50% 2022-2024 I/O — 267,908 266,824 — CRE whole loan (6) Hotel/ Various 1M BR + 3.90% - 8.50% FLOOR 0.10% - 2.45% 2022-2024 I/O — 124,088 123,344 8,400 CRE whole loan Self-Storage/ Various 1M BR + 3.85% - 5.50% FLOOR 0.10% - 1.00% 2024-2025 I/O — 57,278 56,658 — CRE whole loan (6)(7)(8) Retail/ Various 1M BR + 3.25% - 5.00% FLOOR 1.00% - 2.15% 2022 I/O — 50,651 48,334 19,541 CRE whole loan Other/ Various 1M BR + 3.50% - 4.25% FLOOR 2.40% - 2.50% 2022-2023 I/O — 14,181 14,137 — Total CRE whole loans 1,891,794 1,875,554 27,941 Mezzanine loans: Mezzanine loans less than 3% of the carrying amount of total loans (9) 42,772 4,700 38,072 Total mezzanine loans 42,772 4,700 38,072 General allowance for loan loss (6,508 ) Total loans $ 1,934,566 $ 1,873,746 $ 66,013 (1) The benchmark rate, “BR”, comprises of the London Interbank Offered Rate (“LIBOR”) and the Term Secured Overnight Financing Rate (“SOFR”), which are used as benchmarks on the Company’s CRE whole loans. Effective June 30, 2023, one-month LIBOR will no longer be published. (2) Maturity dates exclude extension options that may be available to borrower. (3) I/O = interest only (4) The net carrying amount of loans includes an individually determined allowance for credit losses of $2.3 million and a general allowance for credit losses of $6.5 million at December 31, 2021. (5) Benchmark rates exclude one interest-only multifamily loan with no benchmark floor. (6) Maturity dates exclude one hotel loan and two retail loans in maturity default at December 31, 2021. In January 2022, one hotel loan and one retail loan in maturity default at December 31, 2021 paid off. (7) Includes one interest-only retail loan with a face amount of $11.5 million that had an individually determined reserve of $2.3 million. (8) Includes one retail loan with a face amount of $16.3 million that is an amortizing loan. (9) Includes one mezzanine loan with a par of $38.1 million and a carrying value of zero in default at December 31, 2021. The following table reconciles our CRE loans carrying amounts for the periods indicated (in thousands): Years Ended December 31, 2021 2020 2019 Balance at beginning of year $ 1,507,682 $ 1,789,985 $ 1,568,967 Additions during the period: New loans originated or acquired 1,367,157 263,081 874,936 Funding of existing loan commitments 29,855 34,981 43,203 Amortization of loan origination fees and costs, net 8,337 5,555 6,053 Protective advances on legacy CRE loans held for sale — — 645 Reversal of (provision for) credit losses, net 21,262 (30,815 ) (58 ) Loans charged-off 4,243 997 — Capitalized interest and loan acquisition costs 228 1,126 3,418 Deductions during the period: Payoff and paydown of loans (1,019,616 ) (493,968 ) (682,846 ) Deed in lieu of foreclosure (19,900 ) (37,956 ) (18,515 ) Capitalized origination fees (16,202 ) (3,821 ) (6,687 ) Cost of loans sold (9,300 ) (18,451 ) — Cumulative effect of accounting change for adoption of credit loss guidance — (3,032 ) — Loans held for sale fair value adjustments — — 869 Balance at end of year $ 1,873,746 $ 1,507,682 $ 1,789,985 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) 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. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. |
Voting Interest Entities | Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and within the period of financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated useful lives used to calculate depreciation, the expected lives over which to amortize premiums and accrete discounts, reversals of or provisions for expected credit losses and the disclosure of contingent liabilities. The coronavirus (“COVID-19”) pandemic continues to plague countries throughout the globe as virus variants have emerged, which, when recognized, led numerous countries, including the U.S., to declare national emergencies. Many countries responded to the initial outbreak beginning in late 2019 by instituting quarantines and restrictions on travel and limiting operations of non-essential offices and retail centers, which resulted in the closure or remote operation of non-essential businesses, increased rates of unemployment and market disruption in connection with the economic uncertainty. While the U.S. and certain countries around the world have eased restrictions and financial markets have stabilized to some degree in connection with the discovery and distribution of vaccines and other treatments, the pandemic, exacerbated by virus variants, continues to cause uncertainty on the U.S. and global economies, generally, and the CRE business in particular, which make estimates and assumptions as of December 31, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19, particularly the reinstatement of restrictions placed on businesses. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available at December 31, 2021. Actual results may ultimately differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2021 and 2020, approximately $33.3 million and $27.3 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company’s cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums as well as cash held for primarily for the Company’s CRE debt securitizations as well as cash held in the CRE debt securitizations and the syndicated corporate loan collateralized debt obligations (“CDOs”). The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2021 2020 Cash and cash equivalents $ 35,500 $ 29,355 Restricted cash 248,431 38,386 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 283,931 $ 67,741 |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets are accounted for under the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Investment Securities | Investment Securities The Company classified its investment securities portfolio as available-for-sale. The Company, from time to time, historically sold its investments due to changes in market conditions or in accordance with its investment strategy. The Company historically reported its investment securities available-for-sale at fair value. To determine fair value, the Company used an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluated the reasonableness of the valuation it received by using a dealer quote, bid, or internal model. If there was a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company evaluated the difference, which could have resulted in an updated valuation from the third-party or a revised dealer quote. Based on a prioritization of inputs used in the valuation of each position, the Company categorized these investments as either Level 2 or Level 3 in the fair value hierarchy. Historically, any changes in fair value of the Company’s investment securities available-for-sale were recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluated available-for-sale securities with fair values below their amortized cost bases to determine the estimate of expected credit losses. Evidence of the need for an allowance for credit losses was based on consideration of several factors, including (i) if the Company intended to sell the security, (ii) if it was more likely than not that the Company would be required to sell the security before recovering its cost, or (iii) whether a portion of the unrealized loss was a result of credit losses or other market factors. A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intended to sell a debt security with a fair value below the amortized cost basis or it was more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, a write-off was recognized in earnings through a charge to the amortized cost of the security and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company did not intend nor was it more likely than not that it would be required to sell before recovery, the loss would be separated into (i) the estimated amount relating to the credit loss and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized in earnings through an increase to the allowance for credit losses, with the remainder of the loss recognized in other comprehensive income. If the Company used a discounted cash flow approach to estimate expected credit losses, changes in the present value attributable to the passage of time were recorded in the provision for credit losses. Estimating cash flows and determining whether there were credit losses required management to exercise judgment and to make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual losses, and the timing of income recognized on these securities, could have differed from reported amounts. Historically, investment security transactions were recorded on the trade date. Realized gains and losses on investment securities were determined on the specific identification method. |
Investment Security Interest Income Recognition | Investment Security Interest Income Recognition Historically, interest income on the Company’s mortgage-backed securities (“MBS”) was accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts were amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield was the contractual interest rate on the investment. If the investment was purchased at a discount or at a premium, the effective yield was computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method required the Company to make estimates of future prepayment rates for its investments that could be contractually prepaid before the contractual maturity date so that the purchase discount could be accreted, or the purchase premium could be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company used directly impacted the estimated remaining lives of its investments. Actual prepayment estimates were reviewed at each quarter end or more frequently if the Company became aware of any material information that would lead it to believe that an adjustment was necessary. For MBS that was not of high credit quality or that could be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may have resulted in a prospective change in interest income recognized. For MBS that was of high credit quality, changes in the original or most recent cash flow projections may have resulted in an immediate cumulative adjustment in interest income recognized. The Company recorded interest receivable on its available-for-sale debt securities in accrued interest receivable on its consolidated balance sheet. The Company analyzed the interest receivable balances on a timely basis, or at least quarterly, to determine if they were uncollectible. If an interest receivable balance was deemed uncollectible, then the Company wrote off the balance of the interest receivable through a reversal of interest income. |
Loans and Loan Interest Income Recognition | Loans The Company acquires loans through direct origination and occasionally through purchases from third-parties and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records loans at the amount funded for originated loans or at the acquisition price for loans purchased, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related write-off considerations prior to the transfer of the loan to loans held for sale are accounted for through the allowance for credit losses on the Company’s consolidated balance sheets. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. The Company records interest receivable on its loans in accrued interest receivable on its consolidated balance sheets. The Company analyzes the interest receivable balances on a timely basis, or at least quarterly, to determine if they are uncollectible. If an interest receivable balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. |
Preferred Equity Investment | Preferred Equity Investment Historically, the Company invested in preferred equity investments. Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, could be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments were accounted for as CRE loans held for investment, were carried at cost, net of unamortized loan fees and origination costs, and were included within CRE loans on the Company’s consolidated balance sheets. The Company accreted or amortized any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees were recognized as income subject to recoverability, which was substantiated by obtaining annual appraisals on the underlying property. |
Allowance for Credit Losses | Allowance for Credit Losses The Company maintains an allowance for credit loss on its loans held for investment. Effective January 1, 2020, the Company determines its allowance for credit losses by measuring the current expected credit losses (“CECL”) on the loan portfolio on a quarterly basis. The Company utilizes a probability of default and loss given default methodology together with collateral-specific data for each loan over a reasonable and supportable forecast period after which it reverts to its historical mean loss ratio, utilizing a blended approach sourced from its own historical losses and the market losses from an engaged third party’s database, to be applied for the remaining estimable period. The CECL model requires the Company to make significant judgements, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection and weighting of appropriate macroeconomic forecast scenarios, (iii) projections for the amounts and timing of future fundings of committed balances and prepayments on CRE investments, (iv) the determination of the risk characteristics in which to pool financial assets, and (v) the appropriate historical loss data to use in the model. Unfunded commitments are not considered in the CECL reserve if they are unconditionally cancellable by the Company. The Company measures the loan portfolio’s credit losses by grouping loans based on similar risk characteristics under CECL, which is typically based on the loan’s collateral type. The Company regularly evaluates the risk characteristics of its loan portfolio to determine whether a different pooling methodology is more accurate. Further, if the Company determines that foreclosure of a loan’s collateral is probable or repayment of the loan is expected through sale or operation of the collateral and the borrower is experiencing financial difficulty, expected credit losses are measured as the difference between the current fair value of the collateral and the amortized cost of the loan. Fair value may be determined based on (i) the present value of estimated cash flows; (ii) the market price, if available; or (iii) the fair value of the collateral less estimated disposition costs. While a loan exhibiting credit quality deterioration may remain on accrual status, the loan is placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the credit deterioration; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued interest is reversed from interest income. The Company utilizes the contractual life of its loans to estimate the period over which it measures expected credit losses. Estimates for prepayments and extensions are incorporated into the inputs for the Company’s CECL model. Modifications to loan terms, such as a modification in connection with a troubled debt restructuring (“TDR”), where a concession is granted to a borrower experiencing financial difficulty, may result in the extension of the loan’s life and an increase in the allowance for credit losses. In March 2020, the Financial Accounting Standards Board (“FASB”) concurred with a joint statement of federal and state banking regulators that eased the requirements to classify a modification as a TDR if the modification was granted in connection with the effects of the COVID-19 pandemic. If the concession granted on a TDR can only be captured through a discounted cash flow analysis, then the Company will individually assess the loan for expected credit losses using the discounted cash flow method. In order to calculate the historical mean loss ratio applied to the loan portfolio, the Company utilizes historical losses from its full underwriting history, along with the market loss history of a selected population of loans from a third party’s database that are similar to the Company’s loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. The Company may make adjustments to the historical loss history for qualitative or environmental factors if it believes there is evidence that the estimate for expected credit losses should be increased or decreased. The Company records write-offs against the allowance for credit losses if it deems that all or a portion of a loan’s balance is uncollectible. If the Company receives cash in excess of some or all of the amounts it previously wrote off, it records the recovery by increas ing the allowance for credit losses. As part of the evaluation of the loan portfolio, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from the least risk to the greatest risk, in connection with this review. Prior to the implementation of CECL, the Company calculated its allowance for credit losses through the calculation of general and specific reserves. The general reserve, established for loans not determined to be impaired individually, was based on the Company’s loan risk ratings. The Company recorded a general reserve equal to 1.5% of the aggregate face values of loans with a risk rating of “3,” plus 5.0% of the aggregate face values of loans with a risk rating of “4.” Loans with a risk rating of “5” were individually measured for impairment to be included in a specific reserve on a quarterly basis. The Company considered a loan to be impaired if at least one of two conditions exists. The first condition was if, based on the Company’s evaluation as part of the loan risk rating process, management believed that a loss event had occurred that made it probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition was that the loan was deemed to be a TDR. These TDRs may not have had an associated specific credit loss allowance if the principal and interest amount was considered recoverable based on market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan was impaired under either of these two conditions, the allowance for credit losses was increased by the amount of the excess of the amortized cost basis of the loan over its fair value. When a loan, or a portion thereof, was considered uncollectible and pursuit of collection was not warranted, the Company recorded a charge-off or write-down of the loan against the allowance for credit losses. |
Operating Revenue at Properties | Operating Revenue at Properties Through its investments in real estate, the Company earns revenue associated with rental operations and hotel operations, which are presented in real estate income on the consolidated statements of operations. The Company’s rental operating revenue consists of fixed contractual base rent arising from tenant leases at the Company’s office properties under operating leases. Revenue is recognized on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s consolidated balance sheet. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any uncollectible receivable balance will be written off. Hotel operating revenue consists of amounts derived from hotel operations, including room sales and other hotel revenues. The Company recognizes hotel operating revenue when guest rooms are occupied, services have been provided or fees have been earned. Revenues are recorded net of any sales, occupancy or other taxes collected from customers on behalf of third parties. The following provides additional detail on room revenue and other operating revenue: • • |
Investment in Real Estate | Investment in Real Estate The Company acquires investments in real estate through direct equity investments and as a result of its lending activities (i.e. through the receipt of the deed-in-lieu of foreclosure on a property). Acquired investments in real estate assets are recorded initially at fair value in accordance with U.S. GAAP. The Company allocates the purchase price of its acquired assets and assumed liabilities based on the relative fair values of the assets acquired and liabilities assumed. The Company accounts for leases that it acquires as operating leases. The Company evaluates whether property obtained as a result of its lending activities should be identified as held for sale. If a property is determined to be held for sale, all of the acquired assets and assumed liabilities will be recorded in property held for sale on the consolidation balance sheet and recorded at the lower of cost or fair value, see the “Assets and Liabilities Held for Sale” section below. Once a property is classified as held for sale, depreciation expense is no longer recorded. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property, building and tenant improvements and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets. The Company amortizes any acquired intangible assets using the straight-line method over the estimated useful lives of the intangible assets. The Company amortizes the value allocated to lease right of use assets and related in-place lease liabilities, when determined to be operating leases, using the straight-line method over the remaining lease term. The value allocated to any associated above or below market lease intangible asset or liability is amortized to lease expense over the remaining lease term. Ordinary repairs and maintenance are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 10 years Tenant improvements 180 days to 3 years FF&E 5 years Right of use assets 66.3 years Intangible assets 180 days to 16.5 years Lease liabilities 66.3 years |
Leases | Leases The value of the operating leases are determined through the discounted cash flow method and are recognized on the consolidated balance sheet as offsetting right of use assets and lease liabilities. The operating lease for the Company’s office space is amortized over the lease term, or 7.3 years, using the effective-interest method. The Company’s operating lease for office equipment is amortized over the lease term, or three years, using the straight-line method. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities and derivative instruments that were used to hedge exposure to interest rate fluctuations. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company’s taxable REIT subsidiaries (“TRSs”), is subject to federal, state and local income taxes. The Company’s TRS’ income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company’s foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. Despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset that was tax effected at $21.4 million and $21.2 million, at December 31, 2021 and 2020, respectively, as the Company believed it was more likely than not that all of the deferred tax assets would not be realized. This assessment was based on the Company’s cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years in its TRSs. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company’s financial position. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. In accordance with GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. |
Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) allocable to common shareholders by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. |
Fair Value Measurement | Fair Value Measurements In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value inputs are observable. Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, for example, when there is little or no market activity for an investment at the end of the period, unobservable inputs may be used. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Transfers between levels are determined by the Company at the end of the reporting period. However, the Company expects that changes in classifications between levels will be rare. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in In March 2020, the FASB issued guidance that provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives and other contracts, related to the expected market transition from the London Interbank Offered Rate (“LIBOR”), and certain other floating-rate benchmark indices to alternative reference rates. The guidance generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. In June 2021, Exantas Capital Corp. 2020-RSO8, Ltd.’s (“XAN 2020-RSO8”) and Exantas Capital Corp. 2020-RSO9, Ltd.’s (“XAN 2020-RSO9”) senior notes’ benchmark rate, one-month LIBOR, was replaced with the compounded Secured Overnight Financing Rate (“SOFR”) plus a benchmark adjustment. As each securitizations’ indentures included terms referencing a benchmark rate replacement, no amendments to the indentures were required. Additionally, in September 2021, January 2022 and February 2022, the term warehouse financing facilities with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) , Morgan Stanley Mortgage Capital Holdings LLC (“Morgan Stanley”) and Barclays Bank PLC (“Barclays”) , respectively, were amended to allow for the transition to alternative rates , including rates tied to SOFR , subject to benchmark transition events. The Company will apply the replacement of the benchmark rate prospectively by adjusting the effective interest rate. All of the Company’s underwritten loans contain terms that allow for a change to an alternative benchmark rate upon the discontinuation of LIBOR. During the year ended December 31, 2021, the Company originated its first CRE loan benchmarked to the Term Secured Overnight Finance Rate. For the Company’s remaining financial instruments utilizing LIBOR as a benchmark rate, the guidance is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. Accounting Standards to be Adopted in Future Periods In August 2020, the FASB issued guidance that removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation into a debt component and an equity or derivative component. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives and the convertible instrument are not issued with substantial premiums accounted for as paid-in capital. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. The guidance also revises the derivative scope exception for contracts in an entity’s own equity and improves the consistency of EPS calculations. The guidance is effective for larger public business entities’ annual periods, and interim periods therein, beginning after December 15, 2021 and for smaller reporting entities after December 15, 2023. Early application is permitted for fiscal years beginning after December 15, 2020. The Company is in the process of evaluating the impact of this guidance. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2020 and 2019 consolidated financial statements, including the consolidated statement of cash flows, to conform to the 2021 presentation. These reclassifications had no effect on net income (loss) reported nor the total change in cash flows for each type of cash flow activity on the consolidated statement of cash flows. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2021 2020 Cash and cash equivalents $ 35,500 $ 29,355 Restricted cash 248,431 38,386 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 283,931 $ 67,741 |
Schedule of Investments in Real Estate and Amortizes Intangible Assets Over The Estimated Useful Lives of Assets | The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 10 years Tenant improvements 180 days to 3 years FF&E 5 years Right of use assets 66.3 years Intangible assets 180 days to 16.5 years Lease liabilities 66.3 years |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
VIE, Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification and carrying values of assets and liabilities of the Company’s Consolidated VIEs at December 31, 2021 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 247,966 $ 405 $ 248,371 Accrued interest receivable 3,826 — 3,826 CRE loans, pledged as collateral (1) 1,601,482 — 1,601,482 Principal paydowns receivable 14,899 — 14,899 Other assets 36 — 36 Total assets (2) $ 1,868,209 $ 405 $ 1,868,614 LIABILITIES Accounts payable and other liabilities $ 315 $ — $ 315 Accrued interest payable 997 — 997 Borrowings 1,466,499 — 1,466,499 Total liabilities $ 1,467,811 $ — $ 1,467,811 (1) Excludes allowance for credit losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VIE, Not Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2021 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 6 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,554 LIABILITIES Accrued interest payable 184 N/A Borrowings 51,548 N/A Total liabilities 51,732 N/A Net (liability) asset $ (50,178 ) N/A |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule Of Supplemental Cash Flows and Other Significant Noncash Transactions | The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2021 2020 2019 Supplemental cash flows: Interest expense paid in cash $ 42,345 $ 44,677 $ 73,963 Income taxes paid in cash $ — $ — $ — Non-cash continuing operating activities include the following: Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure $ — $ (2,490 ) $ — Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure $ — $ (3,113 ) $ — Assumption of operating lease related to the receipt of deed in lieu of foreclosure $ — $ 3,113 $ — Acquisition of other right of use assets $ (479 ) $ — $ — Assumption of other operating lease liabilities $ 479 $ — $ — Non-cash continuing investing activities include the following: Investment in property held for sale related to the receipt of deed in lieu of foreclosure $ (17,600 ) $ — $ — Proceeds from the relinquishment of investment securities available-for-sale $ — $ 369,873 $ — Proceeds from the receipt of deed in lieu of foreclosure on loan $ 17,600 $ 39,750 $ — Investment in real estate assets related to the receipt of deed in lieu of foreclosure $ — $ (33,924 ) $ — Investment in intangible assets related to the receipt of deed in lieu of foreclosure $ — $ (3,336 ) $ — Non-cash continuing financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ — $ (369,873 ) $ — Distributions on common stock accrued but not paid $ — $ — $ 8,767 Distributions on preferred stock accrued but not paid $ 3,262 $ 1,725 $ 1,725 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company’s restricted cash (in thousands): December 31, 2021 2020 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 248,071 $ 38,353 Restricted cash pledged with minimum reserve balance requirements 360 33 Total $ 248,431 $ 38,386 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans Held For Investment [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company’s loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Credit Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4) At December 31, 2021: CRE loans held for investment: Whole loans (5)(6) 93 $ 1,891,795 $ (13,944 ) $ 1,877,851 $ (8,550 ) $ 1,869,301 1M BR plus 2.70% to 1M BR plus 8.50% January 2022 to September 2025 Mezzanine loan (5) 1 4,700 — 4,700 (255 ) 4,445 10.00% June 2028 Total CRE loans held for investment $ 1,896,495 $ (13,944 ) $ 1,882,551 $ (8,805 ) $ 1,873,746 At December 31, 2020: CRE loans held for investment: Whole loans (5)(6) 95 $ 1,515,722 $ (6,144 ) $ 1,509,578 $ (32,283 ) $ 1,477,295 1M BR plus 2.70% to 1M BR plus 9.00% January 2021 to January 2024 Mezzanine loan (5) 1 4,700 — 4,700 (301 ) 4,399 10.00% June 2028 Preferred equity investments (7) 2 27,650 64 27,714 (1,726 ) 25,988 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,548,072 $ (6,080 ) $ 1,541,992 $ (34,310 ) $ 1,507,682 (1) Amounts include unamortized loan origination fees of $13.6 million and $5.7 million and deferred amendment fees of $307,000 and $495,000 at December 31, 2021 and 2020, respectively. Additionally, the amounts include unamortized loan acquisition costs of $7,300 and $118,000 at December 31, 2021 and 2020, respectively. (2) The Company’s whole loan portfolio of $1.9 billion and $1.5 billion had a weighted-average one-month benchmark rate (“BR”) floor of 0.75% and 1.88% at December 31, 2021 and 2020, respectively. Benchmark rates comprise one-month LIBOR or one-month Term SOFR. At December 31, 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. At December 31, 2020, all whole loans had one-month LIBOR floors. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) Maturity (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2021 and 2020. (6) CRE whole loans (7) The interest rate |
Summary of Contractual Maturities of Commercial Real Estate Loans at Amortized Cost | The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2022 2023 2024 and Thereafter Total At December 31, 2021: Whole loans (1) $ 377,024 $ 230,872 $ 1,242,013 $ 1,849,909 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 377,024 $ 230,872 $ 1,246,713 $ 1,854,609 Description 2021 2022 2023 and Thereafter Total At December 31, 2020: Whole loans (1) $ 599,053 $ 540,639 $ 330,143 $ 1,469,835 Mezzanine loan — — 4,700 4,700 Preferred equity investment — 6,452 21,262 27,714 Total CRE loans (2) $ 599,053 $ 547,091 $ 356,105 $ 1,502,249 (1) Maturity dates exclude three whole loans with amortized costs of $27.9 million, and three whole loans with an amortized cost of $39.7 million in maturity default at December 31, 2021 and 2020, respectively. (2) At December 31, 2021, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $52.0 million, $127.6 million and $1.7 billion in 2022, 2023 and 2024 and thereafter, respectively. At December 31, 2020, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $112.4 million, $125.1 million and $1.3 billion in 2021, 2022 and 2023 and thereafter, respectively. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Activity in Allowance for Credit Losses | The following tables show the activity in the allowance for credit losses for the years ended December 31, 2021 and 2020 (in thousands): Years Ended December 31, 2021 2020 CRE Loans CRE Loans Allowance for credit losses: Allowance for credit losses at beginning of year $ 34,310 $ 1,460 Adoption of the new accounting guidance — 3,032 (Reversal of) provision for credit losses (21,262 ) 30,815 Charge offs (4,243 ) (997 ) Allowance for credit losses at end of year $ 8,805 $ 34,310 |
Credit quality indicators for bank loans and commercial real estate loans | The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Risk Rating Risk Characteristics 1 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Mezzanine loans and preferred equity investments may experience greater credit risks due to their nature as subordinated investments. For the purpose of calculating the quarterly provision for credit losses under CECL, the Company pools CRE loans based on the underlying collateral property type and utilizes a probability of default and loss given default methodology for approximately one year after which it immediately reverts to a historical mean loss ratio. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amounts in the footnote): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2021: Whole loans, floating-rate $ — $ 1,456,330 273,078 $ 123,762 $ 24,681 $ 1,877,851 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,456,330 $ 273,078 $ 128,462 $ 24,681 $ 1,882,551 At December 31, 2020: Whole loans, floating-rate $ — $ 611,838 $ 599,208 $ 262,398 $ 36,134 $ 1,509,578 Mezzanine loan — — 4,700 — — 4,700 Preferred equity investments — — 6,452 21,262 — 27,714 Total $ — $ 611,838 $ 610,360 $ 283,660 $ 36,134 $ 1,541,992 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2021 2020 2019 2018 2017 Prior Total (1) At December 31, 2021: Whole loans, floating-rate: (2) Rating 2 $ 1,230,810 $ 150,513 $ 55,510 $ 19,497 $ — $ — $ 1,456,330 Rating 3 33,781 24,604 136,305 60,888 — 17,500 273,078 Rating 4 — — 28,446 86,096 — 9,220 123,762 Rating 5 — — 22,385 — — 2,296 24,681 Total whole loans, floating-rate 1,264,591 175,117 242,646 166,481 — 29,016 1,877,851 Mezzanine loan (rating 4) — — — 4,700 — — 4,700 Total $ 1,264,591 $ 175,117 $ 242,646 $ 171,181 $ — $ 29,016 $ 1,882,551 2020 2019 2018 2017 2016 Prior Total (1) At December 31, 2020: Whole loans, floating-rate: (2) Rating 2 $ 221,364 $ 279,077 $ 111,397 $ — $ — $ — $ 611,838 Rating 3 43,579 246,073 246,944 45,142 — 17,470 599,208 Rating 4 — 77,495 129,536 46,220 — 9,147 262,398 Rating 5 — 13,938 — 19,900 — 2,296 36,134 Total whole loans, floating-rate 264,943 616,583 487,877 111,262 — 28,913 1,509,578 Mezzanine loan (rating 3) — — 4,700 — — — 4,700 Preferred equity investments: Rating 3 — 6,452 — — — — 6,452 Rating 4 — — 21,262 — — — 21,262 Total preferred equity investments — 6,452 21,262 — — — 27,714 Total $ 264,943 $ 623,035 $ 513,839 $ 111,262 $ — $ 28,913 $ 1,541,992 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. At December 31, 2021 and 2020, the Company had one mezzanine loan included in assets held for sale that had no carrying value. |
Loan portfolios aging analysis | The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 Days (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing At December 31, 2021: Whole loans, floating-rate $ — $ — $ 19,916 $ 19,916 $ 1,857,935 $ 1,877,851 $ 19,916 Mezzanine loan — — — — 4,700 4,700 — Total $ — $ — $ 19,916 $ 19,916 $ 1,862,635 $ 1,882,551 $ 19,916 At December 31, 2020: Whole loans, floating-rate $ — $ — $ 11,443 $ 11,443 $ 1,498,135 $ 1,509,578 $ 11,443 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 27,714 27,714 — Total $ — $ — $ 11,443 $ 11,443 $ 1,530,549 $ 1,541,992 $ 11,443 (1) During the years ended December 31, 2021, 2020 and 2019, the Company recognized interest income of $1.2 million, $1.3 million and $1.1 million, respectively, on two loans with principal payments past due greater than 90 days at December 31, 2021. (2) Includes one whole loan and two whole loans with total amortized costs of $8.0 million and $28.3 million, respectively, in maturity default at December 31, 2021 and 2020, respectively. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $6.1 million and $7.3 million at December 31, 2021 and 2020, respectively. |
INVESTMENTS IN REAL ESTATE AN_2
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Summary of Acquisition Date Values of Acquired Assets and Assumed Liabilities | During the year ended December 31, 2021, the Company acquired investments in real estate through direct equity investments and as a result of its lending activities (primarily through foreclosure or deed-in-lieu of foreclosure in full or partial satisfaction of non-performing loans). The following table summarizes the acquisition date values of the acquired assets and assumed liabilities during the year ended December 31, 2021 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 22,359 Building 4,211 Building and tenant improvements 495 Investments in real estate 27,065 Intangible assets 1,726 Total 28,791 Liabilities assumed: Other liabilities (247 ) Fair value of net assets acquired 28,544 Investments in real estate from lending activities: Assets acquired: Property held for sale 17,889 Total fair value at acquisition of net assets acquired $ 46,433 |
Schedule of Acquired Assets and Assumed Liabilities | The following table summarizes the book value of the Company’s acquired assets and assumed liabilities (in thousands, except amounts in the footnotes): December 31, 2021 December 31, 2020 Cost Basis Accumulated Depreciation & Amortization Carrying Value Cost Basis Accumulated Depreciation & Amortization Carrying Value Assets acquired: Investments in real estate, equity: Investments in real estate (1) $ 27,065 $ (191 ) $ 26,874 $ — $ — $ — Intangible assets (2) 1,726 (806 ) 920 — — — Subtotal 28,791 (997 ) 27,794 — — — Investments in real estate from lending activities: Investment in real estate (3) 34,124 (1,689 ) 32,435 33,929 (123 ) 33,806 Property held for sale (4) 17,846 — 17,846 — — — Right of use assets (5)(6) 5,603 (95 ) 5,508 5,603 (11 ) 5,592 Intangible assets (7) 3,337 (380 ) 2,957 3,336 (42 ) 3,294 Subtotal 60,910 (2,164 ) 58,746 42,868 (176 ) 42,692 Total 89,701 (3,161 ) 86,540 42,868 (176 ) 42,692 Liabilities assumed: Investments in real estate, equity: Other liabilities (247 ) 78 (169 ) — — — Investments in real estate from lending activities: Lease liabilities (6) (3,113 ) 53 (3,060 ) (3,113 ) 6 (3,107 ) Total (3,360 ) 131 (3,229 ) (3,113 ) 6 (3,107 ) $ 86,341 $ 83,311 $ 39,755 $ 39,585 (1) Includes (2) Carrying value includes approximately $819,000 of an acquired in-place lease intangible asset and $101,000 of an acquired leasing commission intangible asset at December 31, 2021. (3) Includes $129,000 of building renovations assets at carrying value at December 31, 2021 made subsequent to the date of acquisition of a property. Additionally, carrying value i ncludes approximately $60,000 and $5,000 of furniture and fixtures purchased for a property subsequent to the date of acquisition, at December 31, 2021 and 2020, respectively (4) Includes a property acquired in October 2021 that is being marketed for sale. (5) Right of use assets include a right of use asset associated with an acquired ground lease of $3.1 million accounted for as an operating lease and a below-market lease intangible asset of $2.4 million and $2.5 million at December 31, 2021 and 2020, respectively. (6) Refer to Note 9 for additional information on the Company’s remaining operating leases. (7) Carrying value includes franchise agreement intangible assets of $2.6 million and $2.8 million and a customer list intangible asset of $311,000 and $477,000 at December 31, 2021 and 2020, respectively. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Operating Leases | The following table summarizes the Company’s operating leases (in thousands): December 31, 2021 Operating Leases: Right of use assets $ 443 Lease liabilities $ (477 ) Weighted average remaining lease term: 6.6 years Weighted average discount rate: 10.65 % |
Summary of Operating Lease Costs and Cash Payments | The following table summarizes the Company’s operating lease costs and cash payments during the period (in thousands): Year Ended December 31, 2021 Lease Cost: Operating lease cost $ 75 |
Summary of Operating Leases Cash Flow Obligations on Undiscounted, Annual Basis | The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands): Operating Leases 2022 $ 97 2023 99 2024 99 2025 102 2026 104 Thereafter 170 Subtotal 671 Less: impact of discount (194 ) Total $ 477 |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Available For Sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value At December 31, 2020: CMBS, fixed-rate $ 2,080 $ — $ — $ 2,080 (1) The amortized cost of CMBS excluded accrued interest receivable of $56,000 at December 31, 2020. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Information with respect to borrowings | Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2021: XAN 2020-RSO8 Senior Notes $ 142,375 $ 577 $ 141,798 2.18% 13.2 years $ 229,263 XAN 2020-RSO9 Senior Notes 94,814 489 94,325 4.25% 15.3 years 144,361 ACR 2021-FL1 Senior Notes (1) 675,223 5,410 669,813 1.60% 14.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 6,437 560,563 1.90% 15.1 years 700,000 Senior secured financing facility — 3,432 (3,432 ) 5.75% 6.2 years 170,791 CRE - term warehouse financing facilities (2)(3) 71,078 4,307 66,771 2.27% 2.8 years 102,027 4.50% Convertible Senior Notes 88,014 1,583 86,431 4.50% 227 days — 5.75% Senior Unsecured Notes (4) 150,000 3,393 146,607 5.75% 4.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.12% 14.7 years — Total $ 1,840,052 $ 25,628 $ 1,814,424 2.44% 12.7 years $ 2,149,085 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2020: XAN 2019-RSO7 Senior Notes $ 415,621 $ 2,861 $ 412,760 1.60% 15.3 years $ 516,979 XAN 2020-RSO8 Senior Notes 388,459 4,164 384,295 1.62% 14.2 years 475,347 XAN 2020-RSO9 Senior Notes 234,731 3,857 230,874 3.31% 16.3 years 285,862 Senior secured financing facility 33,360 4,046 29,314 5.75% 6.6 years 239,385 CRE - term warehouse financing facilities (2) 13,516 1,258 12,258 2.66% 299 days 20,000 4.50% Convertible Senior Notes 143,750 6,498 137,252 4.50% 1.6 years — 12.00% Senior Unsecured Notes 50,000 3,574 46,426 12.00% 6.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.18% 15.7 years — Total $ 1,330,985 $ 26,258 $ 1,304,727 2.83% 13.0 years $ 1,537,573 (1) Value of collateral excludes (2) Principal outstanding includes accrued interest payable of $58,000 and $16,000 at December 31, 2021 and 2020, respectively. (3) In October 2021, the (4) Includes deferred debt issuance costs of $306,000 at December 31, 2021 from the unused 12.00% senior unsecured notes (“12.00% Senior Unsecured Notes”). |
Schedule of securitizations | The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2021 (in thousands): Closing Date Maturity Date Permitted Funded Companion Participation Acquisition Period End (1) Reinvestment Period End (2) Total Note Paydowns from Closing Date through December 31, 2021 XAN 2020-RSO8 March 2020 March 2035 March 2023 N/A $ 293,368 XAN 2020-RSO9 (3) September 2020 April 2037 N/A N/A $ 150,980 ACR 2021-FL1 May 2021 June 2036 N/A May 2023 $ — ACR 2021-FL2 (4) December 2021 January 2037 N/A December 2023 $ — (1) The permitted funded companion participation period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) The reinvestment period is the period in which principal proceeds received may be used to acquire CRE loans for reinvestment into the securitization. (3) XAN 2020-RSO9 (4) Includes a 180-day ramp up acquisition period that allows the securitization to acquire CRE loans using unused proceeds of $98.9 million at December 31, 2021 from the issuance of the non-recourse floating-rate notes. |
Schedule of convertible senior notes | The following table summarizes the 4.50% Convertible Senior Notes at December 31, 2021 (dollars in thousands, except the conversion price and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3)(4) Conversion Price (4) Maturity Date 4.50% Convertible Senior Notes $ 88,014 4.50 % 7.43 % 27.7222 $ 36.06 August 15, 2022 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the 4.50% Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) During the years ended December 31, 2021 and 2020 the effective interest rate for the 4.50% Convertible Senior Notes was 7.43%. (3) Represents the number of shares of common stock per $1,000 principal amount of the 4.50% Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture (4) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2021 are adjusted to reflect quarterly cash dividends in excess of a $0.30 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. |
Senior secured warehouse financing facilities and repurchase agreements | The following table sets forth certain information with respect to the Company’s senior secured financing facility, term warehouse facilities and December 31, 2021 December 31, 2020 Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Senior Secured Financing Facility Massachusetts Mutual Life Insurance Company (1) $ (3,432 ) $ 170,791 9 5.75% $ 29,314 $ 239,385 17 5.75% CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 18,875 37,167 3 2.85% 12,258 20,000 1 2.66% Morgan Stanley Mortgage Capital Holdings LLC (4) 47,896 64,860 3 2.03% — — — —% Total $ 63,339 $ 272,818 $ 41,572 $ 259,385 (1) Includes $3.4 million and $4.0 million of deferred debt issuance costs at December 31, 2021 and December 31, 2020, respectively. There was no outstanding balance at December 31, 2021. (2) Outstanding borrowings include accrued interest payable. (3) Includes $1.8 million and $1.3 million of deferred debt issuance costs at December 31, 2021 and 2020, respectively, which includes 356,000 (4) Includes $2.2 million of deferred debt issuance costs at December 31, 2021. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the warehouse financing facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2021: CRE - Term Warehouse Financing Facilities JPMorgan Chase Bank, N. A. $ 16,329 2.8 years 2.85% Morgan Stanley Mortgage Capital Holdings LLC $ 14,871 2.8 years 2.03% (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. |
Schedule of contractual obligations and commitments | Contractual maturity dates of the Company’s borrowings’ principal outstanding by category and year are presented in the table below (in thousands, except amounts in footnotes): Total 2022 2023 2024 2025 2026 and Thereafter At December 31, 2021: CRE securitizations (1) $ 1,479,412 $ — $ — $ — $ — $ 1,479,412 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes (2) 88,014 88,014 — — — — 5.75% Senior Unsecured Notes 150,000 — — — — 150,000 CRE - term warehouse financing facilities (3) 71,078 — — 71,078 — — Total $ 1,840,052 $ 88,014 $ — $ 71,078 $ — $ 1,680,960 (1) In February 2022, XAN 2020-RSO9’s non-recourse floating rate notes (2) In February 2022, the Company repurchased (3) Includes accrued interest payable in the balances of principal outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company’s restricted common stock transactions: Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2021 11,610 $ 6.46 Issued 333,329 17.39 Vested (11,610 ) 6.46 Forfeited — — Unvested shares at December 31, 2021 333,329 $ 17.39 |
Summary of unvested restricted common stock expected to vest | The unvested restricted common stock shares are expected to vest during the following years : Year Shares 2022 83,331 2023 83,331 2024 83,331 2025 83,336 Total 333,329 |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options at December 31, 2021: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2021 3,333 $ 76.80 Vested — — Exercised — — Forfeited — — Expired (3,333 ) 76.80 Vested at December 31, 2021 — $ — — $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted (losses) earnings per common share | The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2021 2020 2019 Net income (loss) from continuing operations $ 33,923 $ (197,713 ) $ 36,217 Net income allocated to preferred shares (15,887 ) (10,350 ) (10,350 ) Net income (loss) from continuing operations allocable to common shares 18,036 (208,063 ) 25,867 Net loss from discontinued operations, net of tax — — (251 ) Net income (loss) allocable to common shares $ 18,036 $ (208,063 ) $ 25,616 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 9,269,607 10,566,904 10,476,704 Weighted average number of warrants outstanding (1) 466,661 196,357 — Total weighted average number of common shares outstanding - basic 9,736,268 10,763,261 10,476,704 Effect of dilutive securities - unvested restricted stock 26,949 — 80,081 Weighted average number of common shares outstanding - diluted 9,763,217 10,763,261 10,556,785 Net income (loss) per common share - basic: Continuing operations $ 1.85 $ (19.33 ) $ 2.47 Discontinued operations — — (0.02 ) Net income (loss) per common share - basic $ 1.85 $ (19.33 ) $ 2.45 Net income (loss) per common share - diluted: Continuing operations $ 1.85 $ (19.33 ) $ 2.45 Discontinued operations — — (0.02 ) Net income (loss) per common share - diluted $ 1.85 $ (19.33 ) $ 2.43 (1) See Note 13 for further details regarding the warrants. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Distributions [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the years ended December 31, 2021, 2020 and 2019 with respect to the Company’s common stock, Series C Preferred Stock and Series D Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.825 September 30 October 25 $ 7,967 $ 0.75 June 30 July 26 $ 7,172 $ 0.675 March 31 April 26 $ 6,373 $ 0.60 Series C Preferred Stock Series D Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2021 December 31 January 31, 2022 $ 2,588 $ 0.5390625 January 31, 2022 $ 2,268 $ 0.4921875 September 30 November 1 $ 2,588 $ 0.5390625 November 1 $ 2,264 $ 0.4921875 June 30 July 30 $ 2,588 $ 0.5390625 July 30 $ 1,736 $ 0.3773440 March 31 April 30 $ 2,588 $ 0.5390625 N/A N/A N/A 2020 December 31 February 1, 2021 $ 2,587 $ 0.5390625 N/A N/A N/A March 31, June 30, and September 30 October 25 $ 7,763 $ 1.6171875 N/A N/A N/A 2019 December 31 January 30, 2020 $ 2,587 $ 0.5390625 N/A N/A N/A September 30 October 30 $ 2,588 $ 0.5390625 N/A N/A N/A June 30 July 30 $ 2,587 $ 0.5390625 N/A N/A N/A March 31 April 30 $ 2,588 $ 0.5390625 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2021 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Gain on Derivatives Balance at January 1, 2021 $ (9,978 ) Amounts reclassified from accumulated other comprehensive loss (1) 1,851 Balance at December 31, 2021 $ (8,127 ) (1) Amounts reclassified from accumulated other comprehensive loss are reclassified to interest expense on the Company’s consolidated statements of operations. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments measured on recurring basis | The following table presents the Company’s financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2020: Assets: Investment securities available-for-sale $ — $ — $ 2,080 $ 2,080 |
Fair value assets unobservable input reconciliation | The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2021 $ 2,080 Included in earnings 878 Sales (2,958 ) Balance, December 31, 2021 $ — |
Fair value financial and non-financial instruments not reported at fair value | The fair values of the Company’s remaining financial and non-financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands, except amount in footnotes): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2021: Assets: CRE whole loans $ 1,869,301 $ 1,889,499 $ — $ — $ 1,889,499 CRE mezzanine loan $ 4,445 $ 4,700 $ — $ — $ 4,700 Loan receivable - related party $ 11,575 $ 10,407 $ — $ — $ 10,407 Liabilities: Senior notes in CRE securitizations $ 1,466,499 $ 1,473,893 $ — $ — $ 1,473,893 Warehouse financing facilities $ 66,771 $ 68,905 $ — $ — $ 68,905 4.50% Convertible Senior Notes $ 86,431 $ 87,873 $ — $ — $ 87,873 5.75% Senior Unsecured Notes (1) $ 146,607 $ 148,125 $ — $ — $ 148,125 Junior subordinated notes $ 51,548 $ 41,424 $ — $ — $ 41,424 At December 31, 2020: Assets: CRE whole loans $ 1,477,295 $ 1,513,822 $ — $ — $ 1,513,822 CRE mezzanine loan $ 4,399 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,988 $ 27,650 $ — $ — $ 27,650 CRE whole loans, fixed-rate (2) $ 4,809 $ 4,809 $ — $ — $ 4,809 Loan receivable - related party $ 11,875 $ 10,184 $ — $ — $ 10,184 Liabilities: Senior notes in CRE securitizations $ 1,027,929 $ 1,030,854 $ — $ — $ 1,030,854 Senior secured financing facility $ 29,314 $ 33,360 $ — $ — $ 33,360 Warehouse financing facility $ 12,258 $ 13,516 $ — $ — $ 13,516 4.50% Convertible Senior Notes $ 137,252 $ 132,437 $ — $ — $ 132,437 12.00% Senior Unsecured Notes $ 46,426 $ 58,910 $ — $ — $ 58,910 Junior unsubordinated notes $ 51,548 $ 31,955 $ — $ — $ 31,955 (1) Carrying value includes deferred debt issuance costs of $307,000 from the redeemed 12.00% Senior Unsecured Notes. (2) Classified as other assets on the consolidated balance sheet. |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
The effect of derivative instruments on the statement of income | The following tables present the effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2021, 2020 and 2019: The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2021 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (1,851 ) Derivatives Year Ended December 31, 2020 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Other (expense) income $ (10 ) Interest rate swap contracts, hedging Interest expense $ (1,562 ) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Offsetting [Abstract] | |
Offsetting financial liabilities | The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — At December 31, 2020: Warehouse financing facilities (2) $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities, repurchase agreements and derivatives. (2) The combined fair value of securities and loans pledged against the Company’s various warehouse financing facilities and repurchase agreements was $102.0 million and $20.0 million at December 31, 2021 and 2020, respectively |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | The following table details the components of income taxes at the Company’s TRSs (in thousands): Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense: Current: Federal $ — $ — $ — State — — — Total current — — — Deferred: Federal — — — State — — — Total deferred — — — Total $ — $ — $ — |
Reconciliation between federal statutory income tax rate and effective income tax rate | A reconciliation of the income tax expense based upon the statutory tax rate to the effective income tax rate was as follows for the Company’s TRSs for the years presented (in thousands): Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense: Statutory tax $ (66 ) $ (37 ) $ 6 State and local taxes, net of federal benefit (59 ) (3,353 ) 2,716 True-up of prior period tax expense — — 816 Valuation allowance 125 6,407 (5,402 ) Discontinued operations adjustment — — 863 Other items — (3,017 ) 1,001 Total $ — $ — $ — |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities were as follows for the Company’s TRSs (in thousands): December 31, 2021 2020 Deferred tax assets related to: Federal, state and local loss carryforwards $ 14,362 $ 13,764 Charitable contribution carryforward 58 58 Capital loss carryforward 327 327 Equity investments 6,728 7,369 Interest expense limitation 163(j) 202 — Total deferred tax assets 21,677 21,518 Valuation allowance (21,360 ) (21,235 ) Total deferred tax assets, net of valuation allowance $ 317 $ 283 Deferred tax liabilities related to: Amortization of intangibles $ (260 ) $ (252 ) Unrealized gains (57 ) (31 ) Total deferred tax liabilities $ (317 ) $ (283 ) Deferred tax assets, net $ — $ — |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations | The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2021: Interest income $ 24,749 $ 25,793 $ 23,986 $ 26,504 Interest expense 13,724 18,702 14,534 14,615 Net interest income $ 11,025 $ 7,091 $ 9,452 $ 11,889 Net income (loss) $ 13,056 $ 13,639 $ (4,928 ) $ 12,156 Net income allocated to preferred shares (2,588 ) (3,568 ) (4,877 ) (4,854 ) Net income (loss) allocable to common shares $ 10,468 $ 10,071 $ (9,805 ) $ 7,302 Net income (loss) per common share - basic $ 1.03 $ 1.04 $ (1.03 ) $ 0.77 Net income (loss) per common share - diluted $ 1.03 $ 1.04 $ (1.03 ) $ 0.76 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2020: Interest income $ 33,290 $ 27,243 $ 24,638 $ 23,072 Interest expense 18,394 12,547 13,033 14,034 Net interest income $ 14,896 $ 14,696 $ 11,605 $ 9,038 Net (loss) income $ (196,521 ) $ (33,400 ) $ 8,159 $ 24,049 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net (loss) income allocable to common shares $ (199,109 ) $ (35,987 ) $ 5,571 $ 21,462 Net (loss) income per common share - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net (loss) income per common share - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Feb. 16, 2021$ / sharesshares | Dec. 31, 2021$ / sharesshares | May 31, 2021shares | Apr. 30, 2021shares | Dec. 31, 2020$ / sharesshares |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||
Reverse stock split of common stock | 0.333 | ||||
Number of fractional shares issued | 0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Capital stock, shares authorized | 141,666,666 | 225,000,000 | |||
Common stock, shares authorized (in shares) | 41,666,666 | 41,666,666 | 125,000,000 | 125,000,000 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash balance in excess of federal deposit Insurance limit, amount | $ 33,300 | $ 27,300 | |
Percentage of REIT taxable income distributed to stockholders not subject to federal corporate tax | 100.00% | ||
Provision for Income Tax | $ 0 | 0 | $ 0 |
Operating loss carryforwards, valuation allowance, tax expense impact | 21,400 | $ 21,200 | |
Foreign TRS | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Provision for Income Tax | $ 0 | ||
Office Space | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease term | 7 years 3 months 18 days | ||
Office Equipment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease term | 3 years | ||
Commercial Real Estate Loans | Rating 3 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Financing receivable, allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | ||
Commercial Real Estate Loans | Rating 4 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Financing receivable, allowance for credit losses, percentage of outstanding par amount of loans | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 35,500 | $ 29,355 | ||
Restricted cash | 248,431 | 38,386 | ||
Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows | $ 283,931 | $ 67,741 | $ 94,434 | $ 95,474 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Investments in Real Estate and Amortizes Intangible Assets Over The Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |
Building improvements | 10 years |
FF&E | 5 years |
Right of use assets | 66 years 3 months 18 days |
Lease liabilities | 66 years 3 months 18 days |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 35 years |
Tenant improvements | 180 days |
Intangible assets | 180 days |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 40 years |
Tenant improvements | 3 years |
Intangible assets | 16 years 6 months |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 12 Months Ended | ||
Dec. 31, 2021USD ($)entity | Dec. 31, 2020USD ($)entity | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | |||
Number of consolidated VIEs | entity | 7 | 6 | |
Financial support, amount | $ | $ 0 | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Restricted cash | $ 248,431 | $ 38,386 |
Accrued interest receivable | 6,112 | 7,372 |
Principal paydowns receivable | 14,899 | 4,250 |
Other assets | 5,482 | 8,783 |
Total assets | 2,284,275 | 1,654,084 |
LIABILITIES | ||
Accounts payable and other liabilities | 7,025 | 2,068 |
Accrued interest payable | 5,937 | 6,036 |
Borrowings | 1,814,424 | 1,304,727 |
Total liabilities | 1,836,080 | 1,319,702 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 248,371 | 38,353 |
Accrued interest receivable | 3,826 | 5,398 |
CRE loans, pledged as collateral | 1,601,482 | 1,231,184 |
Principal paydowns receivable | 14,899 | |
Other assets | 36 | 114 |
Total assets | 1,868,614 | 1,279,299 |
LIABILITIES | ||
Accounts payable and other liabilities | 315 | 136 |
Accrued interest payable | 997 | 806 |
Borrowings | 1,466,499 | 1,027,929 |
Total liabilities | 1,467,811 | $ 1,028,871 |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 247,966 | |
Accrued interest receivable | 3,826 | |
CRE loans, pledged as collateral | 1,601,482 | |
Principal paydowns receivable | 14,899 | |
Other assets | 36 | |
Total assets | 1,868,209 | |
LIABILITIES | ||
Accounts payable and other liabilities | 315 | |
Accrued interest payable | 997 | |
Borrowings | 1,466,499 | |
Total liabilities | 1,467,811 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 405 | |
Accrued interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Principal paydowns receivable | 0 | |
Other assets | 0 | |
Total assets | 405 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 |
Borrowings | $ 1,814,424,000 | $ 1,304,727,000 |
VIE, Not Primary Beneficiary | Investment in RCT I and II | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100.00% | |
Investments in unconsolidated entities | $ 1,500,000 | |
VIE, Not Primary Beneficiary | Interest in RCT I | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 774,000 | |
Percentage of value of trusts owned | 3.00% | |
Borrowings | $ 25,800,000 | |
VIE, Not Primary Beneficiary | Interest in RCT II | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 774,000 | |
Percentage of value of trusts owned | 3.00% | |
Borrowings | $ 25,800,000 |
VARIABLE INTEREST ENTITIES (S_2
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS: | ||
Total assets | $ 2,284,275 | $ 1,654,084 |
LIABILITIES | ||
Total liabilities | 1,836,080 | $ 1,319,702 |
VIE, Not Primary Beneficiary | Interest Receivable | ||
LIABILITIES | ||
Maximum Exposure to Loss | 0 | |
VIE, Not Primary Beneficiary | Investments in Unconsolidated Entities | ||
LIABILITIES | ||
Maximum Exposure to Loss | 1,548 | |
Unsecured Junior Subordinated Debentures | VIE, Not Primary Beneficiary | ||
ASSETS: | ||
Accrued interest receivable | 6 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,554 | |
LIABILITIES | ||
Accrued interest payable | 184 | |
Borrowings | 51,548 | |
Total liabilities | 51,732 | |
Net (liability) asset | $ (50,178) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental cash flows: | |||
Interest expense paid in cash | $ 42,345 | $ 44,677 | $ 73,963 |
Non-cash continuing operating activities include the following: | |||
Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure | (2,490) | ||
Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure | (3,113) | ||
Assumption of operating lease related to the receipt of deed in lieu of foreclosure | 3,113 | ||
Acquisition of other right of use assets | (479) | ||
Assumption of other operating lease liabilities | 479 | ||
Non-cash continuing investing activities include the following: | |||
Investment in property held for sale related to the receipt of deed in lieu of foreclosure | (17,600) | ||
Proceeds from the relinquishment of investment securities available-for-sale | 369,873 | ||
Proceeds from the receipt of deed in lieu of foreclosure on loan | 17,600 | 39,750 | |
Investment in real estate assets related to the receipt of deed in lieu of foreclosure | (33,924) | ||
Investment in intangible assets related to the receipt of deed in lieu of foreclosure | (3,336) | ||
Non-cash continuing financing activities include the following: | |||
Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale | (369,873) | ||
Common Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | 8,767 | ||
Preferred Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | $ 3,262 | $ 1,725 | $ 1,725 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 248,431 | $ 38,386 |
Cash held by consolidated CRE securitizations, CDOs and CLOs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 248,071 | 38,353 |
Restricted cash pledged with minimum reserve balance requirements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 360 | $ 33 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) | Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) |
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 1,882,551,000 | $ 1,541,992,000 | |
Allowance for Credit Losses | (8,805,000) | (34,310,000) | |
Commercial Real Estate Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 1,896,495,000 | 1,548,072,000 | |
Unamortized (Discount) Premium, net | (13,944,000) | (6,080,000) | |
Amortized Cost, Loans held for investment | 1,882,551,000 | 1,541,992,000 | |
Allowance for Credit Losses | (8,805,000) | (34,310,000) | $ (1,460,000) |
Carrying Value, Loans held for investment | 1,873,746,000 | 1,507,682,000 | |
Loan origination fees | 13,600,000 | 5,700,000 | |
Deferred amendment fees | 307,000 | 495,000 | |
Unamortized loan acquisition costs | 7,300 | 118,000 | |
Commercial Real Estate Loans | Whole Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 1,891,795,000 | 1,515,722,000 | |
Unamortized (Discount) Premium, net | (13,944,000) | (6,144,000) | |
Amortized Cost, Loans held for investment | 1,877,851,000 | 1,509,578,000 | |
Allowance for Credit Losses | (8,550,000) | (32,283,000) | |
Carrying Value, Loans held for investment | $ 1,869,301,000 | $ 1,477,295,000 | |
Quantity | Loan | 93 | 95 | |
Loans held for investment, unfunded loan commitments | $ 157,600,000 | $ 67,200,000 | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | |||
Receivables With Imputed Interest [Line Items] | |||
Loan receivable, floor interest rate | 0.75% | 1.88% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Minimum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 2.70% | 2.70% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Maximum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 8.50% | 9.00% | |
Commercial Real Estate Loans | Mezzanine loan | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | $ 4,700,000 | $ 4,700,000 | |
Amortized Cost, Loans held for investment | 4,700,000 | 4,700,000 | |
Allowance for Credit Losses | (255,000) | (301,000) | |
Carrying Value, Loans held for investment | $ 4,445,000 | $ 4,399,000 | |
Quantity | Loan | 1 | 1 | |
Contractual Interest Rates | 10.00% | 10.00% | |
Commercial Real Estate Loans | Preferred equity investments | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | $ 27,650,000 | ||
Unamortized (Discount) Premium, net | 64,000 | ||
Amortized Cost, Loans held for investment | 27,714,000 | ||
Allowance for Credit Losses | (1,726,000) | ||
Carrying Value, Loans held for investment | $ 25,988,000 | ||
Quantity | Loan | 2 | ||
Loans held for investment, unfunded loan commitments | $ 2,500,000 | ||
Loans receivable, contracted interest rate | 8.00% | ||
Commercial Real Estate Loans | Preferred equity investments | Minimum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 11.00% | ||
Commercial Real Estate Loans | Preferred equity investments | Maximum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 11.50% | ||
Commercial Real Estate Loans | Whole Loans in Default | |||
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 27,900,000 | $ 39,700,000 | |
Quantity | Loan | 3 | 3 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan |
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 1,882,551 | $ 1,541,992 |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | 1,882,551 | 1,541,992 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 27,900 | $ 39,700 |
Number of loans | Loan | 3 | 3 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | $ 377,024 | $ 599,053 |
2023 | 230,872 | 547,091 |
2024 and Thereafter | 1,246,713 | 356,105 |
Amortized Cost, Loans held for investment | 1,854,609 | 1,502,249 |
Commercial Real Estate Debt Investments | Whole Loans | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | 377,024 | 599,053 |
2023 | 230,872 | 540,639 |
2024 and Thereafter | 1,242,013 | 330,143 |
Amortized Cost, Loans held for investment | 1,849,909 | 1,469,835 |
Commercial Real Estate Debt Investments | Whole Loans | Whole Loan in Extension Option | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | 52,000 | 112,400 |
2023 | 127,600 | 125,100 |
2024 and Thereafter | 1,700,000 | 1,300,000 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
2024 and Thereafter | 4,700 | 4,700 |
Amortized Cost, Loans held for investment | $ 4,700 | 4,700 |
Commercial Real Estate Debt Investments | Preferred equity investments | ||
Receivables With Imputed Interest [Line Items] | ||
2023 | 6,452 | |
2024 and Thereafter | 21,262 | |
Amortized Cost, Loans held for investment | $ 27,714 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Principal paydowns receivable | $ 14,899 | $ 4,250 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 18.40% | 17.90% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 28.40% | 21.40% |
Commercial Real Estate Loans | Southeast Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 15.20% | 16.10% |
FINANCING RECEIVABLES (Activity
FINANCING RECEIVABLES (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for credit losses: | |||
Allowance for credit losses at beginning of year | $ 34,310 | ||
(Reversal of) provision for credit losses, net | (21,262) | $ 30,815 | $ 58 |
Allowance for credit losses at end of year | 8,805 | 34,310 | |
Commercial Real Estate Loans | |||
Allowance for credit losses: | |||
Allowance for credit losses at beginning of year | 34,310 | 1,460 | |
(Reversal of) provision for credit losses, net | (21,262) | 30,815 | |
Charge offs | (4,243) | (997) | |
Allowance for credit losses at end of year | $ 8,805 | 34,310 | $ 1,460 |
Commercial Real Estate Loans | ASU 2016-13 (CECL Guidance) | |||
Allowance for credit losses: | |||
Adoption of the new accounting guidance | $ 3,032 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2021USD ($) | Nov. 30, 2020USD ($) | Jun. 30, 2020USD ($)Note | Dec. 31, 2021USD ($)LoanNoteContractBorrower | Dec. 31, 2020USD ($)LoanNote | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
(Reversal of) provision for credit losses, net | $ (21,262,000) | $ 30,815,000 | $ 58,000 | ||||
Financing Receivable, Allowance for Credit Loss | 8,805,000 | $ 34,310,000 | |||||
Current expected credit losses (CECL) allowance | $ 2,300,000 | ||||||
Reversal of CECL allowance | $ 8,000,000 | ||||||
Number of bank loans | Loan | 2 | 1 | |||||
Troubled-debt restructurings | $ 0 | ||||||
Extension Agreements | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
No of extension agreements | Contract | 14 | ||||||
Weighted average extension period of contracts | 11 months | ||||||
Principal Forgiveness | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of borrowers | Borrower | 2 | ||||||
Number of borrowers, default | Borrower | 1 | ||||||
Commercial Real Estate Debt Investments | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Fair value of assets acquired | $ 39,800,000 | ||||||
Collateral Dependent Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | $ 2,300,000 | $ 1,900,000 | |||||
Office Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current expected credit losses (CECL) allowance | 1,900,000 | ||||||
Hotel Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Current expected credit losses (CECL) allowance | $ 0 | ||||||
Mezzanine loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of bank loans | Note | 1 | 1 | |||||
Northeast Region | Office Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance individually evaluated | $ 19,900,000 | $ 19,900,000 | |||||
Current expected credit losses (CECL) allowance | 2,300,000 | $ 2,300,000 | |||||
Loan appraised value | 17,600,000 | ||||||
Northeast Region | Hotel Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance individually evaluated | $ 37,900,000 | 14,000,000 | 14,000,000 | 9,300,000 | |||
Current expected credit losses (CECL) allowance | 1,700,000 | 0 | 1,800,000 | ||||
Estimate of fair value | $ 7,500,000 | ||||||
Proceeds from sale of notes receivable | $ 7,600,000 | ||||||
Asia Pacific | Retail Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance individually evaluated | 11,500,000 | ||||||
Current expected credit losses (CECL) allowance | 2,300,000 | ||||||
East North Central Region | Hotel Loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Principal balance individually evaluated | 8,400,000 | ||||||
Current expected credit losses (CECL) allowance | 0 | ||||||
Commercial Real Estate Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
(Reversal of) provision for credit losses, net | (21,262,000) | 30,815,000 | |||||
Financing Receivable, Allowance for Credit Loss | $ 8,805,000 | 34,310,000 | $ 1,460,000 | ||||
Proceeds from sale of notes receivable | $ 17,400,000 | ||||||
Number of notes receivable sold | Note | 1 | ||||||
Realized loss on sale of notes receivable | 1,000,000 | ||||||
Number of bank loans | Loan | 3 | ||||||
Loan appraised value | 19,900,000 | ||||||
No of extension agreements | Loan | 2 | ||||||
Commercial Real Estate Loans | Mezzanine loan | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | $ 255,000 | $ 301,000 | |||||
Commercial Real Estate Loans | Whole Loans Floating Rate | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of bank loans | Loan | 3 | 3 | |||||
Recorded investment | $ 27,900,000 | $ 39,700,000 | |||||
Commercial Real Estate Loans | Two Whole Loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Recorded investment | 30,400,000 | ||||||
Commercial Real Estate Loans | Principal Receivable | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Proceeds from the payoffs of loans receivable | $ 17,600,000 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 1,882,551 | $ 1,541,992 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,882,551 | 1,541,992 |
Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,877,851 | 1,509,578 |
Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 27,714 | |
Rating 1 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | |
Rating 2 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,456,330 | 611,838 |
Rating 2 | Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,456,330 | 611,838 |
Rating 2 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 2 | Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | |
Rating 3 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 273,078 | 610,360 |
Rating 3 | Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 273,078 | 599,208 |
Rating 3 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 4,700 |
Rating 3 | Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 6,452 | |
Rating 4 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 128,462 | 283,660 |
Rating 4 | Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 123,762 | 262,398 |
Rating 4 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 4,700 | 0 |
Rating 4 | Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 21,262 | |
Rating 5 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 24,681 | 36,134 |
Rating 5 | Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 24,681 | 36,134 |
Rating 5 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 0 | 0 |
Rating 5 | Commercial Real Estate Loans | Preferred equity investments | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 0 |
FINANCING RECEIVABLES (Credit_2
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commercial Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 6.1 | $ 7.3 |
FINANCING RECEIVABLES (Credit_3
FINANCING RECEIVABLES (Credit Risk Profiles of CRE Loans by Origination Year at Amortized Costs) (Details) - Commercial Real Estate Loans - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | $ 1,264,591 | $ 264,943 |
Loans and receivables by origination year, 2020 | 175,117 | 623,035 |
Loans and receivables by origination year, 2019 | 242,646 | 513,839 |
Loans and receivables by origination year, 2018 | 171,181 | 111,262 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 29,016 | 28,913 |
Loans and receivables by origination year, Total | 1,882,551 | 1,541,992 |
Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 1,264,591 | 264,943 |
Loans and receivables by origination year, 2020 | 175,117 | 616,583 |
Loans and receivables by origination year, 2019 | 242,646 | 487,877 |
Loans and receivables by origination year, 2018 | 166,481 | 111,262 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 29,016 | 28,913 |
Loans and receivables by origination year, Total | 1,877,851 | 1,509,578 |
Whole Loans Floating Rate | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 1,230,810 | 221,364 |
Loans and receivables by origination year, 2020 | 150,513 | 279,077 |
Loans and receivables by origination year, 2019 | 55,510 | 111,397 |
Loans and receivables by origination year, 2018 | 19,497 | 0 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 0 |
Loans and receivables by origination year, Total | 1,456,330 | 611,838 |
Whole Loans Floating Rate | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 33,781 | 43,579 |
Loans and receivables by origination year, 2020 | 24,604 | 246,073 |
Loans and receivables by origination year, 2019 | 136,305 | 246,944 |
Loans and receivables by origination year, 2018 | 60,888 | 45,142 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 17,500 | 17,470 |
Loans and receivables by origination year, Total | 273,078 | 599,208 |
Whole Loans Floating Rate | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 77,495 |
Loans and receivables by origination year, 2019 | 28,446 | 129,536 |
Loans and receivables by origination year, 2018 | 86,096 | 46,220 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 9,220 | 9,147 |
Loans and receivables by origination year, Total | 123,762 | 262,398 |
Whole Loans Floating Rate | Rating 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 13,938 |
Loans and receivables by origination year, 2019 | 22,385 | 0 |
Loans and receivables by origination year, 2018 | 0 | 19,900 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 2,296 | 2,296 |
Loans and receivables by origination year, Total | 24,681 | 36,134 |
Mezzanine loan | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 0 |
Loans and receivables by origination year, 2019 | 0 | 4,700 |
Loans and receivables by origination year, 2018 | 4,700 | 0 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 0 |
Loans and receivables by origination year, Total | $ 4,700 | 4,700 |
Preferred equity investments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | |
Loans and receivables by origination year, 2020 | 6,452 | |
Loans and receivables by origination year, 2019 | 21,262 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | 27,714 | |
Preferred equity investments | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | |
Loans and receivables by origination year, 2020 | 6,452 | |
Loans and receivables by origination year, 2019 | 0 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | 6,452 | |
Preferred equity investments | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2021 | 0 | |
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 21,262 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | $ 21,262 |
FINANCING RECEIVABLES (Credit_4
FINANCING RECEIVABLES (Credit Risk Profiles of CRE Loans by Origination Year at Amortized Costs) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 6.1 | $ 7.3 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 1,882,551 | $ 1,541,992 |
Total Loans > Than 90 days and Accruing | 19,916 | 11,443 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Greater than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 19,916 | 11,443 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 19,916 | 11,443 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 1,862,635 | 1,530,549 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 1,882,551 | 1,541,992 |
Commercial Real Estate Loans | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 1,877,851 | 1,509,578 |
Total Loans > Than 90 days and Accruing | 19,916 | 11,443 |
Commercial Real Estate Loans | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Total Loans > Than 90 days and Accruing | 0 | 0 |
Commercial Real Estate Loans | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 27,714 | |
Total Loans > Than 90 days and Accruing | 0 | |
Commercial Real Estate Loans | 30-59 Days | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | |
Commercial Real Estate Loans | 60-89 Days | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | |
Commercial Real Estate Loans | Greater than 90 Days | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 19,916 | 11,443 |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | |
Commercial Real Estate Loans | Total Past Due | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 19,916 | 11,443 |
Commercial Real Estate Loans | Total Past Due | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Total Past Due | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | |
Commercial Real Estate Loans | Current | Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 1,857,935 | 1,498,135 |
Commercial Real Estate Loans | Current | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 4,700 | 4,700 |
Commercial Real Estate Loans | Current | Preferred equity investments | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 27,714 |
FINANCING RECEIVABLES (Loan P_2
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Parenthetical) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)Loan | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($)Loan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | $ 26,504 | $ 23,986 | $ 25,793 | $ 24,749 | $ 23,072 | $ 24,638 | $ 27,243 | $ 33,290 | $ 101,032 | $ 108,243 | $ 144,886 |
Number of bank loans | Loan | 2 | 1 | 2 | 1 | |||||||
Recorded investment excluded accrued interest receivable | $ 100,774 | $ 101,303 | 118,060 | ||||||||
Whole Loans In Maturity Default | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of bank loans | Loan | 1 | 2 | 1 | 2 | |||||||
Recorded investment | $ 8,000 | $ 28,300 | $ 8,000 | $ 28,300 | |||||||
Commercial Real Estate Loans | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | $ 1,200 | 1,300 | $ 1,100 | ||||||||
Number of bank loans | Loan | 3 | 3 | |||||||||
Recorded investment excluded accrued interest receivable | $ 6,100 | $ 7,300 | |||||||||
Commercial Real Estate Loans | Greater than 90 Days | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of bank loans | Loan | 2 | 2 |
INVESTMENTS IN REAL ESTATE AN_3
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Summary of Acquisition Date Values of Acquired Assets and Assumed Liabilities) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Assets acquired: | |
Fair value of net assets acquired | $ 46,433 |
Liabilities assumed: | |
Fair value of net assets acquired | 46,433 |
Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 27,065 |
Intangible assets | 1,726 |
Total | 28,791 |
Fair value of net assets acquired | 28,544 |
Liabilities assumed: | |
Other liabilities | (247) |
Fair value of net assets acquired | 28,544 |
Investments In Real Estate From Lending Activities | |
Assets acquired: | |
Property held for sale | 17,889 |
Land | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 22,359 |
Building | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 4,211 |
Building and Tenant Improvements | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | $ 495 |
INVESTMENTS IN REAL ESTATE AN_4
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investment in Real Estate, Carrying Value | $ 59,308 | $ 33,806 |
Right of use Assets, Carrying Value | 5,951 | 5,592 |
Assets Acquired, Cost Basis | 89,701 | 42,868 |
Assets Acquired, Accumulated Depreciation & Amortization | (3,161) | (176) |
Assets Acquired, Carrying Value | 86,540 | 42,692 |
Liabilities Assumed, Cost Basis | (3,360) | (3,113) |
Liabilities Assumed, Accumulated Depreciation & Amortization | 131 | 6 |
Liabilities Assumed, Carrying Value | (3,229) | (3,107) |
Assets Acquired and Liabilities Assumed, Cost Basis | 86,341 | 39,755 |
Asset Acquired and Liabilities Assumed, Carrying Value | 83,311 | 39,585 |
Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investment in Real Estate, Cost Basis | 27,065 | |
Investment in Real Estate Accumulated Depreciation & Amortization | (191) | |
Investment in Real Estate, Carrying Value | 26,874 | |
Intangible Assets, Cost Basis | 1,726 | |
Intangible Assets, Accumulated Depreciation & Amortization | (806) | |
Intangible Assets, Carrying Value | 920 | |
Assets Acquired, Cost Basis | 28,791 | |
Assets Acquired, Accumulated Depreciation & Amortization | (997) | |
Assets Acquired, Carrying Value | 27,794 | |
Other Liabilities, Cost Basis | (247) | |
Other Liabilities, Accumulated Depreciation & Amortization | 78 | |
Other Liabilities, Carrying Value | (169) | |
Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investment in Real Estate, Cost Basis | 34,124 | 33,929 |
Investment in Real Estate Accumulated Depreciation & Amortization | (1,689) | (123) |
Investment in Real Estate, Carrying Value | 32,435 | 33,806 |
Right of use Assets, Cost Basis | 5,603 | 5,603 |
Right of use Assets Accumulated Depreciation & Amortization | (95) | (11) |
Right of use Assets, Carrying Value | 5,508 | 5,592 |
Intangible Assets, Cost Basis | 3,337 | 3,336 |
Intangible Assets, Accumulated Depreciation & Amortization | (380) | (42) |
Intangible Assets, Carrying Value | 2,957 | 3,294 |
Property Held for Sale, Cost Basis | 17,846 | |
Property Held for Sale, Carrying Value | 17,846 | |
Assets Acquired, Cost Basis | 60,910 | 42,868 |
Assets Acquired, Accumulated Depreciation & Amortization | (2,164) | (176) |
Assets Acquired, Carrying Value | 58,746 | 42,692 |
Lease Liabilities, Cost Basis | (3,113) | (3,113) |
Lease Liabilities, Accumulated Depreciation & Amortization | 53 | 6 |
Lease Liabilities, Carrying Value | $ (3,060) | $ (3,107) |
INVESTMENTS IN REAL ESTATE AN_5
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Acquired Assets and Assumed Liabilities (Parenthetical) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investments in real estate | $ 27,065,000 | |
Acquired in-place lease intangible asset | 819,000 | |
Leasing commission intangible asset | 101,000 | |
Intangible assets | 920,000 | |
Investments In Real Estate Equity | Land | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investments in real estate | 22,359,000 | |
Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Building renovation assets | 129,000 | |
Furniture and fixtures purchased for the property | 60,000 | $ 5,000 |
Ground leases | 3,100,000 | |
Below market lease intangible asset | 2,400,000 | 2,500,000 |
Intangible assets | 2,957,000 | 3,294,000 |
Investments In Real Estate From Lending Activities | Franchise Rights | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 2,600,000 | 2,800,000 |
Investments In Real Estate From Lending Activities | Customer Lists | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | $ 311,000 | $ 477,000 |
INVESTMENTS IN REAL ESTATE AN_6
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | ||
Offsetting amortization and accretion on right of use assets and lease liabilities | $ 47,000 | $ 6,000 |
Intangible assets held | 0 | 0 |
Amortization expense on intangible assets | 1,200,000 | $ 47,000 |
Amortization expense on intangible assets during 2022 | 1,200,000 | |
Amortization expense on intangible assets during 2023 | 401,000 | |
Amortization expense on intangible assets during 2024 | 244,000 | |
Amortization expense on intangible assets during 2025 | 210,000 | |
Amortization expense on intangible assets during 2026 | $ 210,000 |
LEASES (Details)
LEASES (Details) - Office Space and Office Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration date | 2024-01 |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration date | 2028-07 |
LEASES (Summary of Operating Le
LEASES (Summary of Operating Leases) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Right of use assets | $ 443 |
Lease liabilities | $ (477) |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
Weighted average remaining lease term: | 6 years 7 months 6 days |
Weighted average discount rate: | 10.65% |
LEASES (Summary of Operating _2
LEASES (Summary of Operating Lease Costs and Cash Payments) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lease Cost: | |
Operating lease cost | $ 75 |
LEASES (Summary of Operating _3
LEASES (Summary of Operating Leases Cash Flow Obligations on Undiscounted, Annual Basis) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 97 |
2023 | 99 |
2024 | 99 |
2025 | 102 |
2026 | 104 |
Thereafter | 170 |
Subtotal | 671 |
Less: impact of discount | (194) |
Total | $ 477 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - CMBS, Fixed Rate $ in Thousands | Dec. 31, 2020USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized Cost | $ 2,080 |
Fair Value | $ 2,080 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Parenthetical) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 6,112,000 | $ 7,372,000 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 56,000 |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021position | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)position | Dec. 31, 2019USD ($)position | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Total losses | $ 186,400,000 | |||
Proceeds from sale of investment securities available-for-sale | $ 2,958,000 | 37,764,000 | $ 638,000 | |
67 CMBS | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Realized losses | $ 180,300,000 | |||
Positions Sold/Redeemed | position | 67 | |||
CMBS | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Unrealized losses | $ 6,100,000 | |||
Positions Sold/Redeemed | position | 2 | 2 | 1 | |
Proceeds from sale of investment securities available-for-sale | 3,000,000 | $ 638,000 | ||
Realized gain | $ 878,000 | $ 4,000 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | |
VIE, Not Primary Beneficiary | Investment in RCT I and II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership percentage in VIE | 100.00% | 100.00% | |
Investments in unconsolidated entities | $ 1,500,000 | $ 1,500,000 | |
Dividends from investments in unconsolidated entities | $ 65,000 | $ 76,000 | $ 101,000 |
VIE, Not Primary Beneficiary | Interest in RCT I | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of value of trusts owned | 3.00% | 3.00% | |
VIE, Not Primary Beneficiary | Interest in RCT II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of value of trusts owned | 3.00% | 3.00% |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 1,840,052,000 | $ 1,330,985,000 |
Unamortized Issuance Costs and Discounts | 25,628,000 | 26,258,000 |
Outstanding Borrowings | $ 1,814,424,000 | $ 1,304,727,000 |
Weighted Average Borrowing Rate | 2.44% | 2.83% |
Weighted Average Remaining Maturity | 12 years 8 months 12 days | 13 years |
Value of Collateral | $ 2,149,085,000 | $ 1,537,573,000 |
XAN 2019-RSO7 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 415,621,000 | |
Unamortized Issuance Costs and Discounts | 2,861,000 | |
Outstanding Borrowings | $ 412,760,000 | |
Weighted Average Borrowing Rate | 1.60% | |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | |
Value of Collateral | $ 516,979,000 | |
XAN 2020-RSO8 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 142,375,000 | 388,459,000 |
Unamortized Issuance Costs and Discounts | 577,000 | 4,164,000 |
Outstanding Borrowings | $ 141,798,000 | $ 384,295,000 |
Weighted Average Borrowing Rate | 2.18% | 1.62% |
Weighted Average Remaining Maturity | 13 years 2 months 12 days | 14 years 2 months 12 days |
Value of Collateral | $ 229,263,000 | $ 475,347,000 |
XAN 2020-RSO9 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 94,814,000 | 234,731,000 |
Unamortized Issuance Costs and Discounts | 489,000 | 3,857,000 |
Outstanding Borrowings | $ 94,325,000 | $ 230,874,000 |
Weighted Average Borrowing Rate | 4.25% | 3.31% |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | 16 years 3 months 18 days |
Value of Collateral | $ 144,361,000 | $ 285,862,000 |
ACR 2021-FL1 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 675,223,000 | |
Unamortized Issuance Costs and Discounts | 5,410,000 | |
Outstanding Borrowings | $ 669,813,000 | |
Weighted Average Borrowing Rate | 1.60% | |
Weighted Average Remaining Maturity | 14 years 6 months | |
Value of Collateral | $ 802,643,000 | |
ACR 2021-FL2 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 567,000,000 | |
Unamortized Issuance Costs and Discounts | 6,437,000 | |
Outstanding Borrowings | $ 560,563,000 | |
Weighted Average Borrowing Rate | 1.90% | |
Weighted Average Remaining Maturity | 15 years 1 month 6 days | |
Value of Collateral | $ 700,000,000 | |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 0 | 33,360,000 |
Unamortized Issuance Costs and Discounts | 3,432,000 | 4,046,000 |
Outstanding Borrowings | $ 29,314,000 | |
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ (3,432,000) | |
Weighted Average Borrowing Rate | 5.75% | 5.75% |
Weighted Average Remaining Maturity | 6 years 2 months 12 days | 6 years 7 months 6 days |
Value of Collateral | $ 170,791,000 | $ 239,385,000 |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 71,078,000 | 13,516,000 |
Unamortized Issuance Costs and Discounts | 4,307,000 | 1,258,000 |
Outstanding Borrowings | $ 66,771,000 | $ 12,258,000 |
Weighted Average Borrowing Rate | 2.27% | 2.66% |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | 299 days |
Value of Collateral | $ 102,027,000 | $ 20,000,000 |
4.50% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 88,014,000 | 143,750,000 |
Unamortized Issuance Costs and Discounts | 1,583,000 | 6,498,000 |
Outstanding Borrowings | $ 86,431,000 | $ 137,252,000 |
Weighted Average Borrowing Rate | 4.50% | 4.50% |
Weighted Average Remaining Maturity | 227 days | 1 year 7 months 6 days |
Value of Collateral | $ 0 | $ 0 |
5.75% Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 150,000,000 | |
Unamortized Issuance Costs and Discounts | 3,393,000 | |
Outstanding Borrowings | $ 146,607,000 | |
Weighted Average Borrowing Rate | 5.75% | |
Weighted Average Remaining Maturity | 4 years 7 months 6 days | |
Value of Collateral | $ 0 | |
12.00% Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 50,000,000 | |
Unamortized Issuance Costs and Discounts | 306,000 | 3,574,000 |
Outstanding Borrowings | $ 46,426,000 | |
Weighted Average Borrowing Rate | 12.00% | |
Weighted Average Remaining Maturity | 6 years 7 months 6 days | |
Value of Collateral | $ 0 | |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 51,548,000 | 51,548,000 |
Unamortized Issuance Costs and Discounts | 0 | 0 |
Outstanding Borrowings | $ 51,548,000 | $ 51,548,000 |
Weighted Average Borrowing Rate | 4.12% | 4.18% |
Weighted Average Remaining Maturity | 14 years 8 months 12 days | 15 years 8 months 12 days |
Value of Collateral | $ 0 | $ 0 |
BORROWINGS (Schedule of Debt)_2
BORROWINGS (Schedule of Debt) (Parenthetical) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 16, 2021 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Interest income | $ 100,774,000 | $ 101,303,000 | $ 118,060,000 | |||
Accrued interest payable | 5,937,000 | 6,036,000 | ||||
Unamortized issuance costs and discounts | $ 25,628,000 | $ 26,258,000 | ||||
4.50% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | ||
Unamortized issuance costs and discounts | $ 1,583,000 | $ 6,498,000 | ||||
5.75% Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.75% | 5.75% | ||||
Unamortized issuance costs and discounts | $ 3,393,000 | |||||
12.00% Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 12.00% | |||||
Unamortized issuance costs and discounts | 306,000 | $ 3,574,000 | ||||
ACR 2021-FL1 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Exit fees | 228,000 | |||||
Interest income | 730,000 | |||||
Unamortized issuance costs and discounts | 5,410,000 | |||||
CRE - Term Warehouse Financing Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest payable | 58,000 | 16,000 | ||||
Unamortized issuance costs and discounts | $ 4,307,000 | $ 1,258,000 | ||||
CRE - Term Warehouse Financing Facilities | Barclays Bank PLC | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument extended maturity year and month | 2022-10 | |||||
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument extended maturity year and month | 2024-10 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
XAN 2020-RSO8 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2020-03 |
Maturity Date | 2035-03 |
Permitted Funded Companion Participation Acquisition Period End | 2023-03 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 293,368 |
XAN 2020-RSO9 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2020-09 |
Maturity Date | 2037-04 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 150,980 |
ACR 2021-FL1 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2021-05 |
Maturity Date | 2036-06 |
End of Designated Principal Reinvestment Period | 2023-05 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 0 |
ACR 2021-FL2 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2021-12 |
Maturity Date | 2037-01 |
End of Designated Principal Reinvestment Period | 2023-12 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 0 |
BORROWINGS (Securitization) (Pa
BORROWINGS (Securitization) (Parenthetical) (Details) $ in Millions | Dec. 31, 2021USD ($) |
XAN 2020-RSO9 Senior Notes | |
Debt Instrument [Line Items] | |
Future advance reserve account to unfunded commitments | $ 7.4 |
CRE - Term Warehouse Financing Facilities | |
Debt Instrument [Line Items] | |
Unused proceeds from issuance of non-recourse floating-rate notes | $ 98.9 |
BORROWINGS (XAN 2019-RSO7) (Det
BORROWINGS (XAN 2019-RSO7) (Details) $ in Millions | Apr. 30, 2019USD ($) |
XAN 2019-RSO7 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 687.2 |
BORROWINGS (XAN 2020-RSO8) (Det
BORROWINGS (XAN 2020-RSO8) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339 | $ 41,572 | |
XAN 2020-RSO8 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 522,600 | ||
Face amount of debt issued | $ 435,700 | ||
Maturity Date | 2035-03 | ||
XAN 2020-RSO8 Senior Notes | Preferred Stock | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,100 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | February 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 295,300 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.15% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | November 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 39,200 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.45% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | December 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,100 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | January 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 32,700 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.15% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | January 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 16,300 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.80% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | February 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% |
BORROWINGS (XAN 2020-RSO9) (Det
BORROWINGS (XAN 2020-RSO9) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339 | $ 41,572 | |
XAN 2020-RSO9 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 297,000 | ||
Face amount of debt issued | $ 245,800 | $ 94,800 | |
Maturity Date | 2037-04 | ||
XAN 2020-RSO9 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class E | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 158,900 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | June 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | July 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 16,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.90% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | July 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.40% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 20,800 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.25% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | August 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 22,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 5.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | August 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 6.00% |
BORROWINGS (ACR 2021-FL1) (Deta
BORROWINGS (ACR 2021-FL1) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339 | $ 41,572 | |
ACR 2021-FL1 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 802,600 | ||
Face amount of debt issued | $ 675,200 | ||
Maturity Date | 2036-06 | ||
ACR 2021-FL1 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 431,400 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.20% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 100,300 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.60% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 37,100 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.80% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 43,100 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 50,200 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 13,000 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.10% |
BORROWINGS (ACR 2021-FL2) (Deta
BORROWINGS (ACR 2021-FL2) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339 | $ 63,339 | $ 41,572 |
ACR 2021-FL2 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | 700,000 | 700,000 | |
Face amount of debt issued | $ 567,000 | $ 567,000 | |
Maturity Date | 2037-01 | ||
ACR 2021-FL2 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | 100.00% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | 100.00% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | 100.00% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 385,000 | $ 385,000 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 30,600 | 30,600 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
ACR 2021-FL2 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 38,500 | 38,500 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
ACR 2021-FL2 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 47,300 | 47,300 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
ACR 2021-FL2 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 51,600 | 51,600 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.10% | ||
ACR 2021-FL2 Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 14,000 | $ 14,000 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.00% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2016 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | |
Unsecured Junior Subordinated Debentures | RCT I entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 4.17% | 4.19% | |
Unamortized debt issuance costs | $ 0 | $ 0 | |
Maturity Date | 2036-06 | ||
Unsecured Junior Subordinated Debentures | RCT II entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 4.08% | 4.16% | |
Unamortized debt issuance costs | $ 0 | $ 0 | |
Maturity Date | 2036-10 |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes and 8.00% Convertible Senior Notes) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2017 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2022 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | $ 63,339,000 | $ 41,572,000 | ||||||||||
Loss on extinguishment of debt | (9,006,000) | |||||||||||||
Interest expense | $ 14,615,000 | $ 14,534,000 | $ 18,702,000 | $ 13,724,000 | $ 14,034,000 | $ 13,033,000 | $ 12,547,000 | $ 18,394,000 | $ 61,575,000 | $ 58,008,000 | $ 83,837,000 | |||
8.00% Convertible Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 100,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | ||||||||
Extinguishment of debt, amount | $ 78,800,000 | |||||||||||||
4.50% Convertible Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 143,800,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||
Repurchase of convertible senior notes | $ 55,700,000 | $ 55,700,000 | ||||||||||||
Charge to earnings | 1,500,000 | |||||||||||||
Loss on extinguishment of debt | 1,200,000 | |||||||||||||
Interest expense | $ 304,000 | |||||||||||||
Closing price of common stock | $ 12.47 | $ 12.47 | ||||||||||||
4.50% Convertible Senior Notes | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repurchase of convertible senior notes | $ 39,800,000 |
BORROWINGS (Schedule of Convert
BORROWINGS (Schedule of Convertible Senior Notes) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,840,052 | $ 1,330,985 | ||
4.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 88,014 | $ 143,750 | ||
Borrowing Rate | 4.50% | 4.50% | 4.50% | 4.50% |
Effective Rate | 7.43% | 7.43% | ||
Conversion Rate | 27.7222 | |||
Conversion Price | $ / shares | $ 36.06 | |||
Maturity Date | Aug. 15, 2022 |
BORROWINGS (Schedule of Conve_2
BORROWINGS (Schedule of Convertible Senior Notes) (Parenthetical) (Details) - 4.50% Convertible Senior Notes - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Effective interest rate | 7.43% | 7.43% | ||
Conversion principal amount | $ 1,000 | |||
Debt instrument convertible dividend threshold (in dollars per share) | $ 0.30 | |||
Borrowing Rate | 4.50% | 4.50% | 4.50% | 4.50% |
BORROWINGS (5.75% Senior Unsecu
BORROWINGS (5.75% Senior Unsecured Notes Due 2026) (Details) - USD ($) | Aug. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | |
5.75% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 150,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |
Percentage of principal amount to be redeemed | 100.00% | ||
Debt instrument redemption term | Prior to May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, in whole or in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date, and (ii) a make-whole premium. On or after May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of the 5.75% Senior Unsecured Notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date | ||
Minimum invested amount in capital | $ 75,000,000 | ||
Minimum percentage of aggregate principal amount | 25.00% |
BORROWINGS (12.00% Senior Unsec
BORROWINGS (12.00% Senior Unsecured Notes) (Details) - USD ($) | Aug. 18, 2021 | Jul. 31, 2020 | Jan. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | $ 63,339,000 | $ 41,572,000 | ||||||||||
Loss on extinguishment of debt | (9,006,000) | |||||||||||||
Interest expense | $ 14,615,000 | $ 14,534,000 | $ 18,702,000 | $ 13,724,000 | 14,034,000 | $ 13,033,000 | $ 12,547,000 | $ 18,394,000 | $ 61,575,000 | 58,008,000 | $ 83,837,000 | |||
Note and Warrant Purchase Agreement | 12.00% Senior Unsecured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, discount | $ 3,100,000 | $ 3,100,000 | ||||||||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Warrants to purchase additional shares of common stock | 699,992 | |||||||||||||
Date from which remaining unissued warrants can be issued | Jul. 31, 2022 | |||||||||||||
Warrants expiration term | 7 years | |||||||||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | 12.00% Senior Unsecured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, maximum borrowing capacity | $ 125,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 12.00% | |||||||||||||
Debt instrument, pay-in-kind interest rate maximum percentage | 3.25% | |||||||||||||
Face amount of debt issued | $ 50,000,000 | |||||||||||||
Debt instrument, redemption amount | 55,300,000 | |||||||||||||
Debt instrument redemption interest amount | 329,000 | |||||||||||||
Debt instrument make-whole amount | 5,000,000 | |||||||||||||
Debt instrument, charge to earnings in connection with redemption | 8,000,000 | |||||||||||||
Loss on extinguishment of debt | 7,800,000 | |||||||||||||
Debt instrument net make-whole amount | 5,000,000 | |||||||||||||
Debt instrument, acceleration of remaining market discount | 2,800,000 | |||||||||||||
Interest expense | $ 218,000 | |||||||||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | 12.00% Senior Unsecured Notes | Subsequent Event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 75,000,000 | |||||||||||||
Warrants to purchase additional shares of common stock | 699,992 | |||||||||||||
Date from which remaining unissued warrants can be issued | Jul. 31, 2022 | |||||||||||||
Warrants expiration term | 7 years | |||||||||||||
Note and Warrant Purchase Agreement | Oaktree | 12.00% Senior Unsecured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 42,000,000 | |||||||||||||
Note and Warrant Purchase Agreement | MassMutual | 12.00% Senior Unsecured Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 8,000,000 |
BORROWINGS (Senior Secured Fina
BORROWINGS (Senior Secured Financing, Term Warehouse Financing Facilities and Repurchase Agreements) (Details) $ in Thousands | Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($)Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 63,339 | $ 41,572 |
Value of Collateral | $ 272,818 | $ 259,385 |
Weighted Average Interest Rate | 2.44% | 2.83% |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 29,314 | |
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ (3,432) | |
Value of Collateral | $ 170,791 | $ 239,385 |
Number of Positions as Collateral | Loan | 9 | 17 |
Weighted Average Interest Rate | 5.75% | 5.75% |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 18,875 | $ 12,258 |
Value of Collateral | $ 37,167 | $ 20,000 |
Number of Positions as Collateral | Loan | 3 | 1 |
Weighted Average Interest Rate | 2.85% | 2.66% |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 47,896 | |
Value of Collateral | $ 64,860 | |
Number of Positions as Collateral | Loan | 3 | |
Weighted Average Interest Rate | 2.03% |
BORROWINGS (Senior Secured Fi_2
BORROWINGS (Senior Secured Financing, Term Warehouse Financing Facilities and Repurchase Agreements) (Parenthetical) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 25,628,000 | $ 26,258,000 |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 3,400,000 | 4,000,000 |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,800,000 | 1,300,000 |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 2,200,000 | |
Interest Receivable | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 356,000 | $ 678,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Warehouse Financing Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 12 years 8 months 12 days | 13 years |
Weighted Average Interest Rate | 2.44% | 2.83% |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 2 years 9 months 18 days | 299 days |
Weighted Average Interest Rate | 2.27% | 2.66% |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 16,329 | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | |
Weighted Average Interest Rate | 2.85% | |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 14,871 | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | |
Weighted Average Interest Rate | 2.03% |
BORROWINGS (Senior Secured Fi_3
BORROWINGS (Senior Secured Financing Facility) (Details) - USD ($) | Jul. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | |
Loan and Servicing Agreement | Senior Secured Financing Facility | MassMutual and Other Lenders | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 250,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.75% | ||
Debt instrument, initial availability period | 2 years | ||
Debt instrument, unused commitment fee | 0.50% | ||
Debt instrument, frequency of commitment fee payment | monthly | ||
Maximum commitment drawn percentage to be maintained to avoid unused commitment fee | 75.00% | ||
Percentage of loan to collateral value | 55.00% | ||
Loan and Servicing Agreement | Senior Secured Financing Facility | MassMutual and Other Lenders | If Borrower Obtains Rating of BBB or Higher by October 31, 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jul. 31, 2027 |
BORROWINGS (CRE - Term Warehous
BORROWINGS (CRE - Term Warehouse Financing Facilities) (Details) - CRE - Term Warehouse Financing Facilities | Nov. 08, 2021USD ($)extension | Oct. 31, 2021 | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($)extension | Apr. 30, 2018USD ($) |
Master Repurchase and Securities Agreement | Wells Fargo Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2020-07 | ||||
Number of options to extend | extension | 3 | ||||
Option to extend, term | 1 year | ||||
Master Repurchase Agreement | Barclays Bank PLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2022-10 | ||||
Debt extended maturity month and year | 2021-10 | ||||
Master Repurchase Agreement | Barclays Bank PLC | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Master Repurchase Agreement | Barclays Bank PLC | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.50% | ||||
Master Repurchase Agreement | JP Morgan Chase Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2024-10 | ||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25.00% | ||||
Master Repurchase Agreement | JP Morgan Chase Bank, N.A. | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Master Repurchase Agreement | JP Morgan Chase Bank, N.A. | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
Master Repurchase and Securities Contract Agreement | Morgan Stanley Mortgage Capital Holdings LLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2022-11 | ||||
Number of options to extend | extension | 2 | ||||
Option to extend, term | 1 year | ||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25.00% |
BORROWINGS (CMBS - Short-Term R
BORROWINGS (CMBS - Short-Term Repurchase Agreements) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 |
CMBS - Short Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 0 | $ 0 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,840,052 |
2022 | 88,014 |
2023 | 0 |
2024 | 71,078 |
2025 | 0 |
2026 and Thereafter | 1,680,960 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 1,479,412 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 1,479,412 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 51,548 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 88,014 |
2022 | 88,014 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 0 |
5.75% Senior Unsecured Notes | |
Debt Instrument [Line Items] | |
Total | 150,000 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 150,000 |
CRE - Term Warehouse Financing Facilities | |
Debt Instrument [Line Items] | |
Total | 71,078 |
2022 | 0 |
2023 | 0 |
2024 | 71,078 |
2025 | 0 |
2026 and Thereafter | $ 0 |
BORROWINGS (Contractual Commi_2
BORROWINGS (Contractual Commitments) (Parenthetical) (Details) - USD ($) | Feb. 28, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2017 |
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 63,339,000 | $ 41,572,000 | |||
XAN 2020-RSO9 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | 94,800,000 | $ 245,800,000 | |||
4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 143,800,000 | ||||
Repurchase of convertible senior notes | $ 55,700,000 | ||||
4.50% Convertible Senior Notes | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Repurchase of convertible senior notes | $ 39,800,000 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | Jul. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2021 | Oct. 04, 2021 | Nov. 30, 2020 |
Class Of Stock [Line Items] | |||||||
Proceeds from issuance of preferred stock, net | $ 110,605,000 | ||||||
Proceeds from issuance of preferred stock, net | 110,605,000 | ||||||
Shares repurchased during period, value | $ 18,400,000 | $ 5,400,000 | |||||
Shares repurchased during period, shares | 1,346,424 | 535,485 | |||||
Equity and Debt Securities Repurchase Program | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount (up to) | $ 20,000,000 | $ 20,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 16,300,000 | ||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | |||||||
Class Of Stock [Line Items] | |||||||
Warrant Exercise price | $ 0.03 | ||||||
Warrants recorded in additional paid-in capital, fair value | $ 3,100,000 | ||||||
Date from which remaining unissued warrants can be issued | Jul. 31, 2022 | ||||||
Warrants to purchase additional shares of common stock | 699,992 | ||||||
Warrants expiration term | 7 years | ||||||
Note and Warrant Purchase Agreement | Oaktree | |||||||
Class Of Stock [Line Items] | |||||||
Warrants issued to purchase common stock | 391,995 | ||||||
Purchase price of common stock for warrants issued | $ 42,000,000 | ||||||
Note and Warrant Purchase Agreement | MassMutual | |||||||
Class Of Stock [Line Items] | |||||||
Warrants issued to purchase common stock | 74,666 | ||||||
Purchase price of common stock for warrants issued | $ 8,000,000 | ||||||
Note and Warrant Purchase Agreement | Maximum | Oaktree and MassMutual | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate purchase of common stock warrants | 1,166,653 | ||||||
7.875% Series D Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Preferred stock, shares issued (in shares) | 4,600,000 | 4,607,857 | 0 | ||||
Preferred stock, coupon authorized | 7.875% | 7.875% | 7.875% | ||||
Offering price | $ 25 | ||||||
Proceeds from issuance of preferred stock, net | $ 110,400,000 | ||||||
Underwriting discounts and other offering expenses | 4,600,000 | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | |||||
Proceeds from issuance of preferred stock, net | $ 110,400,000 | ||||||
Preferred stock, shares outstanding (in shares) | 4,607,857 | 0 | |||||
Series D Preferred Stock | Equity Distribution Agreement | |||||||
Class Of Stock [Line Items] | |||||||
Preferred stock, shares issued (in shares) | 7,857 | ||||||
Proceeds from issuance of preferred stock, net | $ 194,000 | ||||||
Proceeds from issuance of preferred stock, net | $ 194,000 | ||||||
Series D Preferred Stock | Equity Distribution Agreement | Maximum | JonesTrading Institutional Services LLC | |||||||
Class Of Stock [Line Items] | |||||||
Number of shares that may be issued or sold from time to time under agreement | 2,200,000 | ||||||
Commission fee payable of gross proceeds from sale of stock in percentage | 3.00% | ||||||
8.625% Series C Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 | |||||
Preferred stock, coupon authorized | 8.625% | 8.625% | |||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | |||||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | |||||
Preferred stock, weighted average issuance price (in dollars per share) | $ 25 | ||||||
8.625% Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||
Class Of Stock [Line Items] | |||||||
Dividend payment rate, variable, basis spread on variable rate | 5.927% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | May 31, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vest in installments | 4 years | ||||
Total unrecognized compensation costs related to unvested restricted stock | $ 4,100,000 | ||||
Cost is expected to be recognized over a weighted average period | 3 years 6 months | ||||
Manager Pursuant To Management Agreement | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cash awards, percentage (up to) | 75.00% | ||||
Common stock awards, percentage (at least) | 25.00% | ||||
Incentive management fee pursuant to the management agreement | $ 0 | $ 0 | $ 606,000,000 | ||
Incentive management fee paid or payable in cash pursuant to the management agreement | 455,000,000 | ||||
Incentive management fee paid or payable in common stock pursuant to the management agreement | $ 151,000,000 | ||||
Manager Pursuant To Management Agreement | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued pursuant to the management agreement (in shares) | 4,435 | ||||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation expense | $ 1,700,000 | $ 3,100,000 | $ 2,200,000 | ||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation expiration period | 2021-05 | ||||
Grants in period (in shares) | 0 | 0 | |||
Contractual term | 10 years | ||||
2007 Omnibus Equity Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of share authorized for issue (in shares) | 1,100,000 | ||||
Share based compensation expiration period | 2029-06 | 2031-06 | |||
Common shares granted | 1,700,817 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | shares | 11,610 |
Issued (shares) | shares | 333,329 |
Vested (shares) | shares | (11,610) |
Unvested shares, end of period (in shares) | shares | 333,329 |
Weighted-Average Grant-Date Fair Value, beginning of period (in shares) | $ / shares | $ 6.46 |
Weighted-Average Grant-Date Fair Value, Issued | $ / shares | 17.39 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 6.46 |
Weighted-Average Grant-Date Fair Value, end of period (in shares) | $ / shares | $ 17.39 |
SHARE-BASED COMPENSATION (Com_2
SHARE-BASED COMPENSATION (Common Stock Expected to Vest) (Details) - Restricted Stock - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
2022 | 83,331 | |
2023 | 83,331 | |
2024 | 83,331 | |
2025 | 83,336 | |
Total | 333,329 | 11,610 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning of period (in shares) | shares | 3,333 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | (3,333) |
Outstanding end of period (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 76.80 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (USD per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 76.80 |
Outstanding end of period (in dollars per share) | $ / shares | $ 0 |
Weighted Average Remaining Contractual Term | 0 years |
Aggregate Intrinsic Value | $ | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) from continuing operations | $ 33,923 | $ (197,713) | $ 36,217 | ||||||||
Net income allocated to preferred shares | $ (4,854) | $ (4,877) | $ (3,568) | $ (2,588) | $ (2,587) | $ (2,588) | $ (2,587) | $ (2,588) | (15,887) | (10,350) | (10,350) |
Net income (loss) from continuing operations allocable to common shares | 18,036 | (208,063) | 25,867 | ||||||||
NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | (251) | ||||||||||
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 7,302 | $ (9,805) | $ 10,071 | $ 10,468 | $ 21,462 | $ 5,571 | $ (35,987) | $ (199,109) | $ 18,036 | $ (208,063) | $ 25,616 |
Weighted average number of common shares outstanding: | |||||||||||
Weighted average number of common shares outstanding - basic | 9,269,607 | 10,566,904 | 10,476,704 | ||||||||
Weighted average number of warrants outstanding | 466,661 | 196,357 | |||||||||
Total weighted average number of common shares outstanding - basic | 9,736,268 | 10,763,261 | 10,476,704 | ||||||||
Effect of dilutive securities - unvested restricted stock | 26,949 | 80,081 | |||||||||
Weighted average number of common shares outstanding - diluted | 9,763,217 | 10,763,261 | 10,556,785 | ||||||||
Net income (loss) per common share - basic: | |||||||||||
Continuing operations (in dollars per share) | $ 1.85 | $ (19.33) | $ 2.47 | ||||||||
Discontinued operations (in dollars per share) | (0.02) | ||||||||||
TOTAL NET INCOME (LOSS) PER COMMON SHARE - BASIC | $ 0.77 | $ (1.03) | $ 1.04 | $ 1.03 | $ 1.96 | $ 0.51 | $ (3.41) | $ (18.89) | 1.85 | (19.33) | 2.45 |
Net income (loss) per common share - diluted: | |||||||||||
Continuing operations (in dollars per share) | 1.85 | (19.33) | 2.45 | ||||||||
Discontinued operations (in dollars per share) | (0.02) | ||||||||||
TOTAL NET INCOME (LOSS) PER COMMON SHARE - DILUTED | $ 0.76 | $ (1.03) | $ 1.04 | $ 1.03 | $ 1.95 | $ 0.51 | $ (3.41) | $ (18.89) | $ 1.85 | $ (19.33) | $ 2.43 |
EARNINGS PER SHARE (Additional
EARNINGS PER SHARE (Additional Information) (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2017 | Jan. 31, 2015 |
4.50% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | |
8.00% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Distributions [Abstract] | ||
REIT required taxable income distribution, percentage (at least) | 90.00% | |
REIT taxable income distribution required for exempt federal income taxes, percentage | 100.00% | |
Dividend per share (in dollars per share) | $ 2.85 |
DISTRIBUTIONS (Dividends Declar
DISTRIBUTIONS (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Class Of Stock [Line Items] | |||||||||||
Dividend Per Share | $ 2.85 | ||||||||||
Common Stock | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Date Paid | Jan. 28, 2020 | Oct. 25, 2019 | Jul. 26, 2019 | Apr. 26, 2019 | |||||||
Total Dividend Paid | $ 8,767 | $ 7,967 | $ 7,172 | $ 6,373 | |||||||
Dividend Per Share | $ 0.825 | $ 0.75 | $ 0.675 | $ 0.60 | |||||||
Series D Preferred Stock | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Date Paid | Jan. 31, 2022 | Nov. 1, 2021 | Jul. 30, 2021 | ||||||||
Total Dividend Paid | $ 2,268 | $ 2,264 | $ 1,736 | ||||||||
Dividend Per Share | $ 0.4921875 | $ 0.4921875 | $ 0.3773440 | ||||||||
Series C Preferred Stock | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Date Paid | Jan. 31, 2022 | Nov. 1, 2021 | Jul. 30, 2021 | Apr. 30, 2021 | Feb. 1, 2021 | Jan. 30, 2020 | Oct. 30, 2019 | Jul. 30, 2019 | Apr. 30, 2019 | Oct. 25, 2020 | |
Total Dividend Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,587 | $ 2,587 | $ 2,588 | $ 2,587 | $ 2,588 | $ 7,763 | |
Dividend Per Share | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 1.6171875 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 334,382 |
Ending balance | 448,195 |
Net Unrealized (Loss) Gain on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (9,978) |
Amounts reclassified from accumulated other comprehensive loss | 1,851 |
Ending balance | $ (8,127) |
RELATED PARTY TRANSACTIONS (Man
RELATED PARTY TRANSACTIONS (Management Agreement) (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022USD ($)shares | Dec. 31, 2021USD ($)period | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||||
Investment management fee equity multiplier | 1.50% | ||||||
Minimum monthly compensation amount included in base management fees payable | $ 442,000 | ||||||
Incentive compensation multiplier | 20.00% | ||||||
Incentive compensation multiplier, weighted average shares | shares | 10,293,783 | ||||||
Incentive compensation, weighted average price share multiplier, one | 1.75% | ||||||
Weighted average price share multiplier | 0.4375% | ||||||
Weighted average price share multiplier, description | one-fourth of the Ten Year Treasury Rate for such quarter | ||||||
Incentive compensation, maximum percentage of net income before such fees | 20.00% | ||||||
Incentive compensation paid in common stock minimum holding period before sale | 1 year | ||||||
Average closing price period for shares traded on a securities exchange | 30 days | ||||||
Average closing price time period before issuance for shares traded on a securities exchange | 3 days | ||||||
Average closing price period for shares traded over-the-counter | 30 days | ||||||
Average closing price time period before issuance for shares traded over-the-counter | 3 days | ||||||
Renewal period | 1 year | ||||||
Management agreement, required termination notice period | 180 days | ||||||
Number of 12-month periods for measurement of termination fee for investment management agreement | period | 2 | ||||||
Management agreement, required termination notice period, with cause | 30 days | ||||||
Management agreement, termination fee payable with cause | $ 0 | ||||||
Management agreement, termination for cause terms, continued material breach of provision of agreement, period | 30 days | ||||||
Management agreement, termination for cause terms, period following change in control, change in control detrimental to manager | 18 months | ||||||
Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of incentive compensation manager may elect to receive in common stock | 25.00% | ||||||
Manager | Fixed-Rate Commercial Real Estate Loans Held For Sale | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of reimbursement out-of-pocket expenses on principal amount of loan issued | 1.00% | ||||||
Manager pursuant to the Management Agreement | ACRES Commercial Realty Corp | |||||||
Related Party Transaction [Line Items] | |||||||
Incentive compensation | $ 0 | $ 0 | |||||
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | ||||||
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | ||||||
Forecast | Manager pursuant to the Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Incentive compensation multiplier | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ||
Incentive compensation | $ 0 | $ 0 | |||||
Incentive compensation multiplier per annum | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with ACRES Capital Corp and Certain of its Subsidiaries) (Details) | Jul. 31, 2020USD ($)extension | Dec. 31, 2021USD ($)shares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)entityPropertyshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Related Party Transaction [Line Items] | ||||||||||||
Base management fees paid by the Company | $ 6,089,000 | $ 6,054,000 | $ 8,954,000 | |||||||||
General and administrative | 11,602,000 | 14,335,000 | 10,392,000 | |||||||||
Interest income | $ 26,504,000 | $ 23,986,000 | $ 25,793,000 | $ 24,749,000 | $ 23,072,000 | $ 24,638,000 | $ 27,243,000 | $ 33,290,000 | 101,032,000 | 108,243,000 | $ 144,886,000 | |
Accrued interest receivable | 6,112,000 | 7,372,000 | 6,112,000 | 7,372,000 | ||||||||
CRE whole loans | 1,934,566,000 | $ 1,934,566,000 | ||||||||||
Vest in installments | 4 years | |||||||||||
Whole Loans Refinanced from Affiliates of Manager | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
CRE whole loans | 24,000,000 | $ 24,000,000 | ||||||||||
Percentage of interest acquired in property | 100.00% | |||||||||||
Number of properties acquired | Property | 1 | |||||||||||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Base management fees paid by the Company | $ 6,100,000 | $ 2,200,000 | ||||||||||
Incentive compensation | 0 | 0 | ||||||||||
Incentive compensation payable and Servicing fees payable | 0 | 0 | 0 | 0 | ||||||||
Total indebtedness | 561,000 | 442,000 | 561,000 | 442,000 | ||||||||
General and administrative | 4,700,000 | 1,800,000 | ||||||||||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | Other Liabilities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Total indebtedness | 1,200,000 | 380,000 | $ 1,200,000 | 380,000 | ||||||||
ACRES Capital Corp | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of securitization entity | entity | 3 | |||||||||||
ACRES Capital Corp | XAN 2020-RSO9 Senior Notes | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Portfolio servicing fees | $ 0 | 0 | ||||||||||
Special servicing fees | 14,000 | 0 | ||||||||||
ACRES Capital Corp | ACRES Commercial Realty Corp | Loan Evidenced by Promissory Note | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction, loan amount | $ 12,000,000 | |||||||||||
Related party transaction, interest rate | 3.00% | |||||||||||
Related party transaction, monthly amortization payment | $ 25,000 | |||||||||||
Related party debt, term | 2026-07 | |||||||||||
Number of options to extend | extension | 2 | |||||||||||
Related party debt, extension term | 1 year | |||||||||||
Related party debt, percentage of extension fee | 0.50% | |||||||||||
Principal balance | 11,600,000 | 11,900,000 | 11,600,000 | 11,900,000 | ||||||||
Accrued interest receivable | 0 | $ 0 | 0 | 0 | ||||||||
ACRES Capital Corp | ACRES Commercial Realty Corp | Loan Evidenced by Promissory Note | Other Income | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Interest income | 357,000 | $ 153,000 | ||||||||||
DevCo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Fees payments | $ 0 | $ 0 | ||||||||||
DevCo | Minimum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Market rate for fees | 1.25% | |||||||||||
DevCo | Maximum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Market rate for fees | 1.50% | |||||||||||
ACRES Share Holdings, LLC | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of share authorized for issue (in shares) | shares | 1,100,000 | 1,100,000 | ||||||||||
Common shares granted | shares | 299,999 | 299,999 | ||||||||||
Shares of common stock vest percentage | 25.00% | |||||||||||
Vest in installments | 4 years |
RELATED PARTY TRANSACTIONS (R_2
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of its Subsidiaries) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | $ 6,089,000 | $ 6,054,000 | $ 8,954,000 |
General and administrative | $ 11,602,000 | 14,335,000 | 10,392,000 |
Prior Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | |||
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | 3,800,000 | 8,300,000 | |
Incentive compensation | 0 | 606,000 | |
Incentive compensation payable in cash | 455,000,000 | ||
Incentive compensation payable in common stock | 151,000,000 | ||
Total indebtedness | 0 | ||
Incentive compensation payable and Servicing fees payable | 0 | ||
General and administrative | 4,100,000 | $ 4,200,000 | |
Resource America | ACRES Commercial Realty Corp | |||
Related Party Transaction [Line Items] | |||
Total indebtedness | $ 0 |
RELATED PARTY TRANSACTIONS (R_3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate, LLC) (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Jul. 31, 2017 | Aug. 31, 2015 | Feb. 28, 2015 | Jul. 31, 2014 | |
Resource Real Estate | |||||||
Related Party Transaction [Line Items] | |||||||
Special servicing fees | $ 0 | $ 0 | |||||
Resource Capital Corp. 2014-CRE2, Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 353,900,000 | ||||||
Resource Capital Corp. 2015-CRE3, Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 346,200,000 | ||||||
Resource Capital Corp. 2015-CRE4, Ltd. | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 312,900,000 | ||||||
RCC 2017-CRE5 | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 376,700,000 | ||||||
XAN 2020-RSO8 Senior Notes | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 522,600,000 |
RELATED PARTY TRANSACTIONS (R_4
RELATED PARTY TRANSACTIONS (Relationship with C3AM and C-III Commercial Mortgage) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
May 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | Jun. 30, 2018 | Jul. 31, 2017 | |
RCC 2017-CRE5 | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 376,700,000 | ||||||
C-III Commercial Mortgage LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate purchase price of loan acquired | $ 197,600,000 | ||||||
Deferred origination fee and exit fee excess percentage on outstanding principal | 0.50% | ||||||
Exit fee earned | $ 361,000 | $ 74,000 | $ 108,000 | ||||
Total indebtedness | $ 0 | $ 48,000 | |||||
C3AM | XAN 2018-RSO6 Senior Notes | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 514,200,000 | ||||||
C3AM | XAN 2019-RSO7 Senior Notes | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Closing transaction amount | $ 687,200,000 | ||||||
C3AM | RCC 2017-CRE5 | Asset Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Servicing fees earned | $ 565,000 |
RELATED PARTY TRANSACTIONS (R_5
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate Opportunity REIT) (Details) - Resource Real Estate Opportunity REIT - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Expense in connection with agreement | $ 67,000 | $ 45,000 |
Payables for rent and professional services | $ 0 | $ 0 |
Agreement termination date | Mar. 31, 2021 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - Recurring Basis $ in Thousands | Dec. 31, 2020USD ($) |
Assets: | |
Investment securities available-for-sale | $ 2,080 |
Level 1 | |
Assets: | |
Investment securities available-for-sale | 0 |
Level 2 | |
Assets: | |
Investment securities available-for-sale | 0 |
Level 3 | |
Assets: | |
Investment securities available-for-sale | $ 2,080 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 - Recurring Basis - CMBS $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2021 | $ 2,080 |
Included in earnings | 878 |
Sales | (2,958) |
Balance, December 31, 2021 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Oct. 31, 2021 | Nov. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total fair value of real estate owned property | $ 17,600,000 | $ 39,800,000 | ||||
Fair value adjustments on financial assets held for sale | $ (8,768,000) | $ (4,682,000) | ||||
Provision for loan and lease losses, net | 645,000 | |||||
Cash proceeds from sale of fixed-rate CRE loans | $ 4,800,000 | |||||
Mezzanine loan | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1000 | |||||
Preferred equity investments | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Rating 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1208 | |||||
Preferred equity investments | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Rating 4 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1154 | |||||
Senior Secured Financing Facility | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Borrowings outstanding | $ 0 | |||||
Senior Secured Financing Facility | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0575 | |||||
Minimum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 4.10% | 3.01% | ||||
Maximum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loans receivable, interest rate, stated percentage | 9.75% | 9.00% | ||||
Commercial Real Estate Loans | Legacy CRE Loans Held For Sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value adjustments on financial assets held for sale | $ 8,800,000 | 4,700,000 | ||||
Property sold | 10,300,000 | |||||
Loss on fair value charges | 6,200,000 | |||||
Provision for loan and lease losses, net | $ 2,700,000 | $ 1,200,000 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | $ 1,873,746 | $ 1,507,682 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Warehouse financing facilities | 0 | 0 |
Junior subordinated notes | 0 | |
Junior unsubordinated notes | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | 12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Warehouse financing facilities | 0 | 0 |
Junior subordinated notes | 0 | |
Junior unsubordinated notes | 0 | |
Significant Other Observable Inputs (Level 2) | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Significant Other Observable Inputs (Level 2) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 0 | |
Significant Other Observable Inputs (Level 2) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 0 | 0 |
Significant Other Observable Inputs (Level 2) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | |
Significant Other Observable Inputs (Level 2) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Significant Other Observable Inputs (Level 2) | 12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 10,407 | 10,184 |
Senior notes in CRE securitizations | 1,473,893 | 1,030,854 |
Warehouse financing facilities | 68,905 | 13,516 |
Junior subordinated notes | 41,424 | |
Junior unsubordinated notes | 31,955 | |
Significant Unobservable Inputs (Level 3) | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 1,889,499 | 1,513,822 |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Significant Unobservable Inputs (Level 3) | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Significant Unobservable Inputs (Level 3) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 33,360 | |
Significant Unobservable Inputs (Level 3) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 87,873 | 132,437 |
Significant Unobservable Inputs (Level 3) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 148,125 | |
Significant Unobservable Inputs (Level 3) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 27,650 | |
Significant Unobservable Inputs (Level 3) | 12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 58,910 | |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 11,575 | 11,875 |
Senior notes in CRE securitizations | 1,466,499 | 1,027,929 |
Warehouse financing facilities | 66,771 | 12,258 |
Junior subordinated notes | 51,548 | |
Junior unsubordinated notes | 51,548 | |
Carrying Value | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 1,869,301 | 1,477,295 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,445 | 4,399 |
Carrying Value | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Carrying Value | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 29,314 | |
Carrying Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 86,431 | 137,252 |
Carrying Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 146,607 | |
Carrying Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 25,988 | |
Carrying Value | 12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 46,426 | |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 10,407 | 10,184 |
Senior notes in CRE securitizations | 1,473,893 | 1,030,854 |
Warehouse financing facilities | 68,905 | 13,516 |
Junior subordinated notes | 41,424 | |
Junior unsubordinated notes | 31,955 | |
Fair Value | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 1,889,499 | 1,513,822 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Fair Value | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Fair Value | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 33,360 | |
Fair Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 87,873 | 132,437 |
Fair Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | $ 148,125 | |
Fair Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 27,650 | |
Fair Value | 12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | $ 58,910 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Parenthetical) (Details) - USD ($) | Dec. 31, 2021 | Aug. 16, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2017 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Unamortized issuance costs and discounts | $ 25,628,000 | $ 26,258,000 | |||
12.00% Senior Unsecured Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Unamortized issuance costs and discounts | $ 307,000,000 | ||||
4.50% Convertible Senior Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | |
Unamortized issuance costs and discounts | $ 1,583,000 | $ 6,498,000 | |||
5.75% Senior Unsecured Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |||
Unamortized issuance costs and discounts | $ 3,393,000 | ||||
12.00% Senior Unsecured Notes | |||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 12.00% | ||||
Unamortized issuance costs and discounts | $ 306,000 | $ 3,574,000 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) - Terminated interest rate swap | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020USD ($) | Dec. 31, 2021USD ($)derivative | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
Realized loss on derivatives, net | $ (11,800,000) | |||
Amortization expense reported in interest expense | $ 1,900,000 | $ 1,300,000 | ||
Gain (loss) on derivatives | (8,500,000) | (10,400,000) | ||
Unrealized gains (loss) on derivatives, net | $ 347,000 | 438,000 | ||
Number of hedges terminated | derivative | 2 | |||
Interest expense to fully amortize | $ 91,000 | $ 92,000 | $ 91,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other (Expense) Income | |||
Derivatives, Fair Value [Line Items] | |||
Realized and Unrealized Gain (Loss) | $ (10) | ||
Interest rate swaps | Interest expense | |||
Derivatives, Fair Value [Line Items] | |||
Realized and Unrealized Gain (Loss) | $ (1,851) | $ (1,562) | $ (138) |
OFFSETTING OF FINANCIAL LIABILI
OFFSETTING OF FINANCIAL LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Warehouse financing facilities | ||
Gross Amounts of Recognized Liabilities | $ 66,771 | $ 12,258 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 66,771 | 12,258 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 66,771 | 12,258 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Fair value of securities pledged against term warehouse financing facilities | $ 102,000 | $ 20,000 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | 0 |
Total current | 0 | 0 | 0 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total deferred | 0 | 0 | 0 |
Total | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ (66) | $ (37) | $ 6 |
State and local taxes, net of federal benefit | (59) | (3,353) | 2,716 |
True-up of prior period tax expense | 0 | 0 | 816 |
Valuation allowance | 125 | 6,407 | (5,402) |
Discontinued operations adjustment | 0 | 0 | 863 |
Other items | 0 | (3,017) | 1,001 |
Total | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets related to: | ||
Federal, state and local loss carryforwards | $ 14,362,000 | $ 13,764,000 |
Charitable contribution carryforward | 58,000 | 58,000 |
Capital loss carryforward | 327,000 | 327,000 |
Equity investments | 6,728,000 | 7,369,000 |
Interest expense limitation 163(j) | 202,000 | 0 |
Total deferred tax assets | 21,677,000 | 21,518,000 |
Valuation allowance | (21,360,000) | (21,235,000) |
Total deferred tax assets, net of valuation allowance | 317,000 | 283,000 |
Deferred tax liabilities related to: | ||
Amortization of intangibles | (260,000) | (252,000) |
Unrealized gains | (57,000) | (31,000) |
Total deferred tax liabilities | (317,000) | (283,000) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes [Line Items] | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 61,100,000 | $ 59,400,000 |
Deferred tax assets, operating loss carryforwards, state and local | 1,900,000 | 1,600,000 |
Capital loss carryforward | 327,000 | 327,000 |
Operating loss carryforwards, valuation allowance, tax expense impact | 21,400,000 | 21,200,000 |
Other Assets | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 14,400,000 | 13,800,000 |
Capital Loss Carryforward | ||
Income Taxes [Line Items] | ||
Gross capital loss carryforward | $ 969,000 | $ 969,000 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 26,504 | $ 23,986 | $ 25,793 | $ 24,749 | $ 23,072 | $ 24,638 | $ 27,243 | $ 33,290 | $ 101,032 | $ 108,243 | $ 144,886 |
Interest expense | 14,615 | 14,534 | 18,702 | 13,724 | 14,034 | 13,033 | 12,547 | 18,394 | 61,575 | 58,008 | 83,837 |
Net interest income | 11,889 | 9,452 | 7,091 | 11,025 | 9,038 | 11,605 | 14,696 | 14,896 | 39,457 | 50,235 | 61,049 |
Net income (loss) | 12,156 | (4,928) | 13,639 | 13,056 | 24,049 | 8,159 | (33,400) | (196,521) | 33,923 | (197,713) | 35,966 |
Net income allocated to preferred shares | (4,854) | (4,877) | (3,568) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (15,887) | (10,350) | (10,350) |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 7,302 | $ (9,805) | $ 10,071 | $ 10,468 | $ 21,462 | $ 5,571 | $ (35,987) | $ (199,109) | $ 18,036 | $ (208,063) | $ 25,616 |
Net income (loss) per common share - basic | $ 0.77 | $ (1.03) | $ 1.04 | $ 1.03 | $ 1.96 | $ 0.51 | $ (3.41) | $ (18.89) | $ 1.85 | $ (19.33) | $ 2.45 |
Net income (loss) per common share - diluted | $ 0.76 | $ (1.03) | $ 1.04 | $ 1.03 | $ 1.95 | $ 0.51 | $ (3.41) | $ (18.89) | $ 1.85 | $ (19.33) | $ 2.43 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 12 Months Ended | 21 Months Ended | |||
Oct. 31, 2019claim | May 31, 2017USD ($)Loan | Dec. 31, 2021USD ($)claim | Aug. 31, 2017claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | ||||||
Estimated litigation liability | $ 0 | $ 0 | ||||
Commercial Real Estate Loans | Whole Loans | ||||||
Loss Contingencies [Line Items] | ||||||
Loans held for investment, unfunded loan commitments | 157,600,000 | 67,200,000 | ||||
Commercial Real Estate Loans | Preferred equity investments | ||||||
Loss Contingencies [Line Items] | ||||||
Loans held for investment, unfunded loan commitments | 2,500,000 | |||||
Indemnification Agreement | ||||||
Loss Contingencies [Line Items] | ||||||
Estimated litigation liability | 1,300,000 | 1,500,000 | ||||
Indemnification Agreement | Pearlmark Mezzanine Realty Partners IV, L.P. | ||||||
Loss Contingencies [Line Items] | ||||||
Number of instruments held | Loan | 1 | |||||
Indemnification Agreement | Pearlmark Mezzanine Realty Partners IV, L.P. | Maximum | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 4,300,000 | $ 536,000 | ||||
PCM | ||||||
Loss Contingencies [Line Items] | ||||||
Outstanding demands to indemnify purchaser of residential mortgage loans | 3,300,000 | 3,300,000 | ||||
PCM | Indemnification Agreement | ||||||
Loss Contingencies [Line Items] | ||||||
Outstanding litigation demands | $ 0 | $ 0 | ||||
Federal Actions | Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, new claims filed, number | claim | 2 | |||||
Estimate of possible loss to be funded by insurance company | $ 550,000 | |||||
Reaves, Caito, Simpson, and Heckel Complaints | Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, new claims filed, number | claim | 6 | |||||
Loss contingency, claims dismissed, number | claim | 4 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 34,310 | $ 1,460 | $ 1,401 |
Charge to Expense | (21,262) | 30,815 | 59 |
Loans Charged off/Recovered | (4,243) | (997) | 0 |
Balance at End of Period | $ 8,805 | 34,310 | 1,460 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 (CECL Guidance) | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3,032 | ||
Balance at End of Period | $ 3,032 |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate And Accumulated Depreciation [Line Items] | ||
Initial Cost to Company, Land | $ 22,359 | |
Initial Cost to Company, Buildings and Improvements | 53,539 | |
Costs Capitalized Subsequent to Acquisition - Improvements | 134 | |
Gross Amount of Which Carried at Close of Period, Land | 22,359 | |
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 53,630 | |
Total | 75,989 | $ 30,944 |
Accumulated Depreciation | (1,204) | $ (112) |
Hotel Property, Northeast Region | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Initial Cost to Company, Buildings and Improvements | 30,944 | |
Costs Capitalized Subsequent to Acquisition - Improvements | 134 | |
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 31,078 | |
Total | 31,078 | |
Accumulated Depreciation | $ (1,013) | |
Year of Construction | 2000 | |
Date Acquired | Nov. 30, 2020 | |
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 34 years 9 months 18 days | |
Office Property, Northeast Region | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Initial Cost to Company, Land | $ 8,188 | |
Initial Cost to Company, Buildings and Improvements | 4,706 | |
Gross Amount of Which Carried at Close of Period, Land | 8,188 | |
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 4,706 | |
Total | 12,894 | |
Accumulated Depreciation | $ (191) | |
Year of Construction | 1999 | |
Date Acquired | Oct. 31, 2021 | |
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 36 years 1 month 6 days | |
Office Property (Held for Sale), Northeast Region | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Initial Cost to Company, Buildings and Improvements | $ 17,889 | |
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 17,846 | |
Total | $ 17,846 | |
Year of Construction | 1928 | |
Date Acquired | Oct. 31, 2021 | |
Unimproved Land, Northeast Region | ||
Real Estate And Accumulated Depreciation [Line Items] | ||
Initial Cost to Company, Land | $ 14,171 | |
Gross Amount of Which Carried at Close of Period, Land | 14,171 | |
Total | $ 14,171 | |
Date Acquired | Nov. 30, 2021 |
Schedule III Real Estate and _3
Schedule III Real Estate and Accumulated Depreciation - Schedule of Rolls Forward our Gross Investment in Real Estate and the Related Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Real Estate: | ||
Balance at beginning of period | $ 30,944 | |
Additions during period: | ||
Acquisitions through deed-in-lieu of foreclosure | 17,889 | $ 30,944 |
Other acquisitions | 27,065 | |
Improvements, etc. | 134 | |
Deductions during period: | ||
Other | (43) | |
Balance at close of period | 75,989 | 30,944 |
Accumulated Depreciation: | ||
Balance at beginning of period | (112) | |
Additions during period: | ||
Depreciation expense | (1,092) | (112) |
Balance at close of period | $ (1,204) | $ (112) |
Schedule IV Mortgage Loans on_2
Schedule IV Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)Loan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 1,934,566 | |||
Net Carrying Amount of Loans | 1,873,746 | $ 1,507,682 | $ 1,789,985 | $ 1,568,967 |
General allowance for loan loss | (6,508) | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 66,013 | |||
CRE Whole loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 1,891,794 | |||
Net Carrying Amount of Loans | 1,875,554 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 27,941 | |||
Allowance for credit losses individually determined | 2,300 | |||
Allowance for credit losses general | 6,500 | |||
CRE Whole loans | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 11,500 | |||
Allowance for credit losses individually determined | 2,300 | |||
CRE Whole loans | Rock Hill, SC | Multifamily | Borrower A | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | 0 | |||
CRE whole loans | 67,500 | |||
Net Carrying Amount of Loans | 66,792 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Rock Hill, SC | Multifamily | Borrower A | Benchmark Rate (BR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.30% | |||
CRE Whole loans | Phoenix AZ | Hotel | Borrower B | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 56,470 | |||
Net Carrying Amount of Loans | $ 56,362 | |||
Variable rate basis, floor | 1.92% | |||
Maturity Date | 2022 | |||
CRE Whole loans | Phoenix AZ | Hotel | Borrower B | Benchmark Rate (BR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.83% | |||
CRE Whole loans | Various | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 1,253,718 | |||
Net Carrying Amount of Loans | 1,243,103 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE Whole loans | Various | Multifamily | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2022 | |||
CRE Whole loans | Various | Multifamily | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Various | Multifamily | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.70% | |||
CRE Whole loans | Various | Multifamily | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 6.00% | |||
CRE Whole loans | Various | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 124,088 | |||
Net Carrying Amount of Loans | 123,344 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 8,400 | |||
CRE Whole loans | Various | Hotel | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2022 | |||
CRE Whole loans | Various | Hotel | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.45% | |||
Maturity Date | 2024 | |||
CRE Whole loans | Various | Hotel | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.90% | |||
CRE Whole loans | Various | Hotel | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 8.50% | |||
CRE Whole loans | Various | Office Building | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 267,908 | |||
Net Carrying Amount of Loans | 266,824 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE Whole loans | Various | Office Building | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2022 | |||
CRE Whole loans | Various | Office Building | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2024 | |||
CRE Whole loans | Various | Office Building | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.82% | |||
CRE Whole loans | Various | Office Building | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.85% | |||
CRE Whole loans | Various | Self Storage | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 57,278 | |||
Net Carrying Amount of Loans | $ 56,658 | |||
CRE Whole loans | Various | Self Storage | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2024 | |||
CRE Whole loans | Various | Self Storage | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.00% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Various | Self Storage | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.85% | |||
CRE Whole loans | Various | Self Storage | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.50% | |||
CRE Whole loans | Various | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 50,651 | |||
Net Carrying Amount of Loans | 48,334 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 19,541 | |||
Maturity Date | 2022 | |||
CRE Whole loans | Various | Retail Site | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.00% | |||
CRE Whole loans | Various | Retail Site | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.15% | |||
CRE Whole loans | Various | Retail Site | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
CRE Whole loans | Various | Retail Site | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.00% | |||
CRE Whole loans | Various | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 14,181 | |||
Net Carrying Amount of Loans | $ 14,137 | |||
CRE Whole loans | Various | Other | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.40% | |||
Maturity Date | 2022 | |||
CRE Whole loans | Various | Other | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE Whole loans | Various | Other | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
CRE Whole loans | Various | Other | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.25% | |||
Mezzanine loans less than 3% of the carrying amount of total loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
Mezzanine loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
One Mezzanine Loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 38,100 | |||
Net Carrying Amount of Loans | $ 0 | |||
Quantity | Loan | 1 | |||
Interest Only Loans | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Quantity | Loan | 1 | |||
Interest Only Loans | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Quantity | Loan | 1 |
Schedule IV Mortgage Loans on_3
Schedule IV Mortgage Loans on Real Estate - Reconciliation of Loans and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,507,682 | $ 1,789,985 | $ 1,568,967 |
Additions during the period: | |||
New loans originated or acquired | 1,367,157 | 263,081 | 874,936 |
Funding of existing loan commitments | 29,855 | 34,981 | 43,203 |
Amortization of loan origination fees and costs, net | 8,337 | 5,555 | 6,053 |
Protective advances on legacy CRE loans held for sale | 645 | ||
Reversal of (provision for) credit losses, net | 21,262 | (30,815) | (58) |
Loans charged-off | 4,243 | 997 | |
Capitalized interest and loan acquisition costs | 228 | 1,126 | 3,418 |
Deductions during the period: | |||
Payoff and paydown of loans | (1,019,616) | (493,968) | (682,846) |
Deed in lieu of foreclosure | (19,900) | (37,956) | (18,515) |
Capitalized origination fees | (16,202) | (3,821) | (6,687) |
Cost of loans sold | (9,300) | $ (18,451) | |
Accounting Standards Update [Extensible List] | ASU 2016-13 (CECL Guidance) | ||
Loans held for sale fair value adjustments | 869 | ||
Balance at end of year | $ 1,873,746 | $ 1,507,682 | $ 1,789,985 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Deductions during the period: | |||
Cumulative effect of accounting change for adoption of credit loss guidance | $ (3,032) |