Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 05, 2022 | |
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 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 8,934,708 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | MD | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 34,870 | $ 35,500 |
Restricted cash | 25,367 | 248,431 |
Accrued interest receivable | 7,162 | 6,112 |
CRE loans | 2,074,689 | 1,882,551 |
Less: allowance for credit losses | (5,230) | (8,805) |
CRE loans, net | 2,069,459 | 1,873,746 |
Principal paydowns receivable | 0 | 14,899 |
Loan receivable - related party | 11,450 | 11,575 |
Investments in unconsolidated entities | 1,548 | 1,548 |
Property held for sale | 17,657 | 17,846 |
Investments in real estate | 144,356 | 59,308 |
Right of use assets | 25,480 | 5,951 |
Intangible assets | 12,170 | 3,877 |
Other assets | 6,907 | 5,482 |
Total assets | 2,356,426 | 2,284,275 |
LIABILITIES | ||
Accounts payable and other liabilities | 10,838 | 7,025 |
Management fee payable - related party | 558 | 561 |
Accrued interest payable | 5,752 | 5,937 |
Borrowings | 1,841,965 | 1,814,424 |
Lease liabilities | 46,620 | 3,537 |
Distributions payable | 3,262 | 3,262 |
Accrued tax liability | 105 | 1 |
Liabilities held for sale | 1,333 | |
Total liabilities | 1,909,100 | 1,836,080 |
EQUITY | ||
Common stock, par value $0.001: 41,666,666 shares authorized; 8,930,130 and 9,149,079 shares issued and outstanding (including 583,333 and 333,329 of unvested restricted shares) | 9 | 9 |
Additional paid-in capital | 1,175,146 | 1,179,863 |
Accumulated other comprehensive loss | (7,210) | (8,127) |
Distributions in excess of earnings | (725,641) | (723,560) |
Total stockholders’ equity | 442,314 | 448,195 |
Non-controlling interests | 5,012 | |
Total equity | 447,326 | 448,195 |
TOTAL LIABILITIES AND EQUITY | 2,356,426 | 2,284,275 |
8.625% Series C Preferred Stock | ||
EQUITY | ||
Preferred stock, value | 5 | 5 |
7.875% Series D Preferred Stock | ||
EQUITY | ||
Preferred stock, value | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 41,666,666 | 41,666,666 |
Common stock, shares issued (in shares) | 8,930,130 | 9,149,079 |
Common stock, shares outstanding (in shares) | 8,930,130 | 9,149,079 |
Common stock, shares issued, non-vested restricted shares (in shares) | 583,333 | 333,329 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 25,367 | $ 248,431 |
Accrued interest receivable | 7,162 | 6,112 |
CRE loans | 2,069,459 | 1,873,746 |
Other assets | 6,907 | 5,482 |
Total assets of consolidated VIEs | 2,356,426 | 2,284,275 |
Accounts payable and other liabilities | 10,838 | 7,025 |
Accrued interest payable | 5,752 | 5,937 |
Borrowings | 1,841,965 | 1,814,424 |
Total liabilities of consolidated VIEs | $ 1,909,100 | $ 1,836,080 |
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 |
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 | 4,607,857 |
Preferred stock, shares outstanding (in shares) | 4,607,857 | 4,607,857 |
VIE, Primary Beneficiary | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 24,888 | $ 248,371 |
Accrued interest receivable | 4,893 | 3,826 |
Principal paydowns receivable | 0 | 14,899 |
Other assets | 117 | 36 |
Total assets of consolidated VIEs | 1,497,901 | 1,868,614 |
Accounts payable and other liabilities | 87 | 315 |
Accrued interest payable | 1,415 | 997 |
Borrowings | 1,231,957 | 1,466,499 |
Total liabilities of consolidated VIEs | 1,233,459 | 1,467,811 |
VIE, Primary Beneficiary | Pledged as Collateral | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
CRE loans | $ 1,468,003 | $ 1,601,482 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest income: | ||||
CRE loans | $ 26,964 | $ 25,773 | $ 49,621 | $ 50,348 |
Securities | 161 | |||
Other | 55 | 20 | 74 | 33 |
Total interest income | 27,019 | 25,793 | 49,695 | 50,542 |
Interest expense | 15,745 | 18,702 | 30,652 | 32,426 |
Net interest income | 11,274 | 7,091 | 19,043 | 18,116 |
Real estate income | 8,777 | 2,732 | 11,915 | 4,386 |
Other revenue | 19 | 16 | 35 | 32 |
Total revenues | 20,070 | 9,839 | 30,993 | 22,534 |
OPERATING EXPENSES | ||||
General and administrative | 2,353 | 2,716 | 5,810 | 5,869 |
Real estate expenses | 9,162 | 2,481 | 13,956 | 4,312 |
Management fees - related party | 1,672 | 1,379 | 3,354 | 2,705 |
Equity compensation - related party | 991 | 171 | 1,735 | 190 |
Corporate depreciation and amortization | 21 | 15 | 43 | 59 |
Provision for (reversal of) credit losses, net | 524 | (10,343) | (1,278) | (15,984) |
Total operating expenses | 14,723 | (3,581) | 23,620 | (2,849) |
Net interest and other revenues less operating expenses | 5,347 | 13,420 | 7,373 | 25,383 |
OTHER INCOME (EXPENSE) | ||||
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | 878 | |||
Loss on extinguishment of debt | (460) | |||
Other income | 175 | 219 | 973 | 434 |
Total other income | 175 | 219 | 513 | 1,312 |
INCOME BEFORE TAXES | 5,522 | 13,639 | 7,886 | 26,695 |
Income tax expense | (280) | |||
NET INCOME | 5,522 | 13,639 | 7,606 | 26,695 |
Net income allocated to preferred shares | (4,856) | (3,568) | (9,711) | (6,156) |
Net loss allocable to non-controlling interest | 24 | 0 | 24 | 0 |
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 690 | $ 10,071 | $ (2,081) | $ 20,539 |
NET INCOME (LOSS) PER COMMON SHARE - BASIC | $ 0.08 | $ 1.04 | $ (0.23) | $ 2.06 |
NET INCOME (LOSS) PER COMMON SHARE - DILUTED | $ 0.08 | $ 1.04 | $ (0.23) | $ 2.06 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 8,888,461 | 9,711,940 | 8,992,142 | 9,952,254 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 8,914,172 | 9,720,609 | 8,992,142 | 9,961,211 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 5,522 | $ 13,639 | $ 7,606 | $ 26,695 |
Other comprehensive income: | ||||
Reclassification adjustments associated with net unrealized losses from interest rate swaps included in net income | 461 | 462 | 917 | 918 |
Total other comprehensive income | 461 | 462 | 917 | 918 |
Comprehensive income before allocation to preferred shares | 5,983 | 14,101 | 8,523 | 27,613 |
Net income allocated to preferred shares | (4,856) | (3,568) | (9,711) | (6,156) |
Net loss allocated to non-controlling interest | 24 | 24 | ||
Comprehensive income (loss) allocable to common shares | $ 1,151 | $ 10,533 | $ (1,164) | $ 21,457 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock 8.625% Series C Preferred Stock | Preferred Stock 7.875% Series D Preferred Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Retained Earnings (Distributions In Excess of Earnings) | Parent | Non-Controlling Interest |
Beginning balance at Dec. 31, 2020 | $ 334,382 | $ 10 | $ 5 | $ 1,085,941 | $ (9,978) | $ (741,596) | $ 334,382 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 10,162,289 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Purchase and retirement of common stock | (9,519) | $ (1) | (9,518) | (9,519) | |||||
Purchase and retirement of common stock (in shares) | (744,778) | ||||||||
Amortization of stock-based compensation | 19 | 19 | 19 | ||||||
Net income | 13,056 | 13,056 | 13,056 | ||||||
Distributions and accrual of cumulative preferred stock dividends | (2,588) | (2,588) | (2,588) | ||||||
Amortization of terminated derivatives | 456 | 456 | 456 | ||||||
Ending balance at Mar. 31, 2021 | 335,806 | $ 9 | 5 | 1,076,442 | (9,522) | (731,128) | 335,806 | ||
Ending balance (in shares) at Mar. 31, 2021 | 9,417,511 | ||||||||
Beginning balance at Dec. 31, 2020 | 334,382 | $ 10 | 5 | 1,085,941 | (9,978) | (741,596) | 334,382 | ||
Beginning balance (in shares) at Dec. 31, 2020 | 10,162,289 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 26,695 | ||||||||
Ending balance at Jun. 30, 2021 | 452,958 | $ 9 | 5 | $ 5 | 1,183,056 | (9,060) | (721,057) | 452,958 | |
Ending balance (in shares) at Jun. 30, 2021 | 9,477,051 | ||||||||
Beginning balance at Mar. 31, 2021 | 335,806 | $ 9 | 5 | 1,076,442 | (9,522) | (731,128) | 335,806 | ||
Beginning balance (in shares) at Mar. 31, 2021 | 9,417,511 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Proceeds from issuance of preferred stock | 115,000 | 5 | 114,995 | 115,000 | |||||
Offering costs | (4,235) | (4,235) | (4,235) | ||||||
Purchase and retirement of common stock | (4,317) | (4,317) | (4,317) | ||||||
Purchase and retirement of common stock (in shares) | (273,789) | ||||||||
Stock-based compensation (in shares) | 333,329 | ||||||||
Amortization of stock-based compensation | 171 | 171 | 171 | ||||||
Net income | 13,639 | 13,639 | 13,639 | ||||||
Distributions and accrual of cumulative preferred stock dividends | (3,568) | (3,568) | (3,568) | ||||||
Amortization of terminated derivatives | 462 | 462 | 462 | ||||||
Ending balance at Jun. 30, 2021 | 452,958 | $ 9 | 5 | 5 | 1,183,056 | (9,060) | (721,057) | 452,958 | |
Ending balance (in shares) at Jun. 30, 2021 | 9,477,051 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 448,195 | $ 9 | 5 | 5 | 1,179,863 | (8,127) | (723,560) | 448,195 | |
Beginning balance (in shares) at Dec. 31, 2021 | 9,149,079 | 9,149,079 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Offering costs | $ (37) | (37) | (37) | ||||||
Purchase and retirement of common stock | (3,885) | (3,885) | (3,885) | ||||||
Purchase and retirement of common stock (in shares) | (314,552) | ||||||||
Amortization of stock-based compensation | 744 | 744 | 744 | ||||||
Net income | 2,084 | 2,084 | 2,084 | ||||||
Distributions and accrual of cumulative preferred stock dividends | (4,855) | (4,855) | (4,855) | ||||||
Amortization of terminated derivatives | 456 | 456 | 456 | ||||||
Ending balance at Mar. 31, 2022 | 442,702 | $ 9 | 5 | 5 | 1,176,685 | (7,671) | (726,331) | 442,702 | |
Ending balance (in shares) at Mar. 31, 2022 | 8,834,527 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 448,195 | $ 9 | 5 | 5 | 1,179,863 | (8,127) | (723,560) | 448,195 | |
Beginning balance (in shares) at Dec. 31, 2021 | 9,149,079 | 9,149,079 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 7,606 | ||||||||
Ending balance at Jun. 30, 2022 | $ 447,326 | $ 9 | 5 | 5 | 1,175,146 | (7,210) | (725,641) | 442,314 | $ 5,012 |
Ending balance (in shares) at Jun. 30, 2022 | 8,930,130 | 8,930,130 | |||||||
Beginning balance at Mar. 31, 2022 | $ 442,702 | $ 9 | 5 | 5 | 1,176,685 | (7,671) | (726,331) | 442,702 | |
Beginning balance (in shares) at Mar. 31, 2022 | 8,834,527 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Offering costs | (33) | (33) | (33) | ||||||
Purchase and retirement of common stock | (2,497) | (2,497) | (2,497) | ||||||
Purchase and retirement of common stock (in shares) | (237,730) | ||||||||
Stock-based compensation (in shares) | 333,333 | ||||||||
Amortization of stock-based compensation | 991 | 991 | 991 | ||||||
Contributions from non-controlling interests | 5,036 | 5,036 | |||||||
Net income | 5,522 | 5,546 | 5,546 | (24) | |||||
Distributions and accrual of cumulative preferred stock dividends | (4,856) | (4,856) | (4,856) | ||||||
Amortization of terminated derivatives | 461 | 461 | 461 | ||||||
Ending balance at Jun. 30, 2022 | $ 447,326 | $ 9 | $ 5 | $ 5 | $ 1,175,146 | $ (7,210) | $ (725,641) | $ 442,314 | $ 5,012 |
Ending balance (in shares) at Jun. 30, 2022 | 8,930,130 | 8,930,130 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 7,606 | $ 26,695 |
Adjustments to reconcile net income from operations to net cash provided by operating activities: | ||
Reversal of credit losses, net | (1,278) | (15,984) |
Depreciation, amortization and accretion | 5,364 | 8,890 |
Amortization of stock-based compensation | 1,735 | 190 |
Net realized and unrealized gain on investment securities available-for-sale and loans and derivatives | (878) | |
Loss on extinguishment of debt | 460 | |
Changes in operating assets and liabilities | (170) | 4,731 |
Net cash provided by operating activities | 13,717 | 23,644 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Origination and purchase of loans | (392,121) | (563,801) |
Principal payments received on loans | 216,368 | 453,794 |
Investments in real estate | (72,279) | |
Principal payments on investment securities available-for-sale | 2,958 | |
Principal payments received on loan - related party | 125 | 125 |
Purchase of furniture and fixtures | (20) | (108) |
Net cash used in investing activities | (247,927) | (107,032) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (6,382) | (13,836) |
Proceeds from issuance of preferred stock (net of $70 and $4,235 of underwriting discounts and offering costs) | (70) | 110,765 |
Proceeds from borrowings: | ||
Securitizations | 675,223 | |
Senior secured financing facility | 30,025 | 58,846 |
Warehouse financing facilities and repurchase agreements | 298,882 | 334,432 |
Mortgage payable | 18,710 | |
Payments on borrowings: | ||
Securitizations | (237,189) | (659,709) |
Senior secured financing facility | (10,150) | (87,831) |
Convertible senior notes | (39,839) | |
Warehouse financing facilities and repurchase agreements | (38,150) | (284,890) |
Payment of debt issuance costs | (646) | (6,370) |
Proceeds received from non-controlling interests | 5,036 | |
Distributions paid on preferred stock | (9,711) | (5,175) |
Net cash provided by financing activities | 10,516 | 121,455 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (223,694) | 38,067 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEG. OF PERIOD | 283,931 | 67,741 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 60,237 | $ 105,808 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Cash Flows [Abstract] | ||
Underwriting discounts and offering costs | $ 70 | $ 4,235 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2022 | |
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 equity investments in commercial real estate properties through direct ownership and joint ventures. The Company’s manager is 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 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, investments in commercial real estate properties and investments in CRE securitizations, which are consolidated as VIEs as discussed in Note 3. Reverse Stock Split Effective February 16, 2021, the Company completed a one-for-three In May 2021, the Company adopted articles of amendment to its charter to decrease its authorized shares of capital stock from 225,000,000 shares, consisting of 125,000,000 shares of common stock and 100,000,000 shares of preferred stock to 141,666,666 shares, consisting of 41,666,666 shares of common stock and 100,000,000 shares of preferred stock. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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. Basis of Presentation All adjustments necessary to fairly present the Company’s financial position, results of operations and cash flows have been made. 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. Many countries responded to the initial outbreak in late 2019 by instituting quarantines, restricting 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 most countries around the world have eased restrictions and financial markets have stabilized to some degree in connection with the development and distribution of vaccines and other effective COVID-19 treatments, the pandemic continues to cause uncertainty on the U.S. and global economies, generally, and the CRE business, specifically. Estimates and assumptions as of June 30, 2022, are 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 June 30, 2022 . 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 June 30, 2022 and December 31, 2021, approximately $31.2 million and $33.3 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 primarily for the Company’s CRE debt securitizations, term warehouse financing facilities and repurchase agreements as well as cash held in 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): June 30, 2022 2021 Cash and cash equivalents $ 34,870 $ 90,805 Restricted cash 25,367 15,003 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 60,237 $ 105,808 Investment in Real Estate The Company depreciates investments in real estate and amortizes related intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements 180 days to 3 years FF&E 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years Income Taxes The Company recorded a full valuation allowance against its net deferred tax assets (tax effected expense of $21.6 million) at June 30, 2022, as the Company believes it is more likely than not that the deferred tax assets will 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 by the Company’s taxable REIT subsidiaries. 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. Recent Accounting Standards Accounting Standards Adopted in 2022 In August 2020, the Financial Accounting Standards Board (“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, if no other features require bifurcation and recognition as derivatives and the convertible instrument is 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. Adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards to be Adopted in Future Periods In March 2022, the FASB issued an amendment eliminating certain previously issued accounting guidance for troubled debt restructurings (“TDRs”) and enhancing disclosure requirements surrounding refinancings, restructurings, and write-offs. Current GAAP provides an exception to general recognition and measurement guidance for loan restructurings if they meet specific criteria to be considered TDRs. If a modification is a TDR, incremental expected losses are recorded in the allowance for credit losses upon modification and specific disclosures are required. The new amendment eliminates the TDR recognition and measurement guidance and requires the reporting entity to evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with accounting for other loan modifications. The amendment also requires public business entities to disclose current-period gross write-offs by year of origination for certain financing receivables and net investments in leases. For entities that have adopted the previously issued guidance amended by this update, which the Company did during the year ended December 31, 2020, this update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for entities that have adopted the previously issued guidance amended by this update. The Company is in the process of evaluating the impact of this guidance. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 five and seven VIEs at June 30, 2022 and December 31, 2021, 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 and corporate bonds 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. In April 2022, the Company contributed an initial investment of $13.0 million for a 72.1% interest in Charles Street-ACRES FSU Student Venture, LLC (the “FSU Student Venture”). The FSU Student Venture, a joint venture between the Company and two unrelated third parties, was formed for the purpose of developing a student housing project. The FSU Student Venture was determined to not be a VIE as there was sufficient equity at risk, it does not have disproportionate voting rights and its members all have the following characteristics: (1) the power to direct activities (2) the obligation to absorb losses and (3) the right to receive residual returns. However, the Company consolidated the FSU Student Venture due to its 72.1% interest that provided the Company with unilateral control over all major decisions of the joint venture. The portion of the joint venture that the Company does not own is presented as non-controlling interest at and for the periods presented in the Company’s consolidated financial statements. 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 10. Creditors of the Company’s Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the six months ended June 30, 2022 and 2021, 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 from such investments to 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 June 30, 2022 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 24,571 $ 317 $ 24,888 Accrued interest receivable 4,893 — 4,893 CRE loans, pledged as collateral (1) 1,468,003 — 1,468,003 Other assets 61 56 117 Total assets (2) $ 1,497,528 $ 373 $ 1,497,901 LIABILITIES Accounts payable and other liabilities $ 87 $ — $ 87 Accrued interest payable 1,415 — 1,415 Borrowings 1,231,957 — 1,231,957 Total liabilities $ 1,233,459 $ — $ 1,233,459 (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 June 30, 2022. 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 each of Resource Capital Trust I (“RCT I”) and RCC Trust II (“RCT II”), with a value of $1.5 million in the aggregate, or 3.0% of each trust, at June 30, 2022. 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 The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at June 30, 2022 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 7 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,555 LIABILITIES Accrued interest payable 229 N/A Borrowings 51,548 N/A Total liabilities 51,777 Net (liability) asset $ (50,222 ) At June 30, 2022, 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 | 6 Months Ended |
Jun. 30, 2022 | |
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): For the Six Months Ended June 30, 2022 2021 Supplemental cash flows: Interest expense paid in cash $ 24,736 $ 20,132 Income taxes paid in cash $ 180 $ — Non-cash operating activities include the following: Receipt of right of use assets $ — $ (479 ) Execution of operating leases $ — $ 479 Non-cash financing activities include the following: Distributions on preferred stock accrued but not paid $ 3,262 $ 2,706 |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2022 | |
Loans Held For Investment [Abstract] | |
LOANS | NOTE 5 - 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 June 30, 2022: CRE loans held for investment: Whole loans (5)(6) 88 $ 2,084,242 $ (14,253 ) $ 2,069,989 $ (5,003 ) $ 2,064,986 1M BR plus 2.75% to 1M BR plus 8.50% July 2022 to July 2026 Mezzanine loan (5) 1 4,700 — 4,700 (227 ) 4,473 10.00% June 2028 Total CRE loans held for investment $ 2,088,942 $ (14,253 ) $ 2,074,689 $ (5,230 ) $ 2,069,459 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 (1) Amounts include unamortized loan origination fees of $14.1 million and $13.6 million and deferred amendment fees of $132,000 and $307,000 at June 30, 2022 and December 31, 2021, respectively. Additionally, the amounts include unamortized loan acquisition costs of $7,300 at December 31, 2021. ( 2 ) The Company’s whole loan portfolio of $2.1 billion and $1.9 billion had weighted-average one-month benchmark rate (“BR”) floors of 0.62% and 0.75% at June 30, 2022 and December 31, 2021, respectively. Benchmark rates comprise one-month London Interbank Offered Rate (“LIBOR”) or one-month Term Secured Overnight Financing Rate (“SOFR”). At June 30, 2022 and December 31, 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. ( 3 ) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms that may be available to the borrowers. ( 4 ) Maturity dates exclude three whole loans, with amortized costs of $43.8 million and $27.9 million, in maturity default at June 30, 2022 and December 31, 2021, respectively. ( 5 ) Substantially all loans are pledged as collateral under various borrowings at June 30, 2022 and December 31, 2021. ( 6 ) CRE whole loans had $167.9 million and $157.6 million in unfunded loan commitments at June 30, 2022 and December 31, 2021, respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. 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 June 30, 2022: Whole loans (1) $ 220,638 $ 229,483 $ 1,576,093 $ 2,026,214 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 220,638 $ 229,483 $ 1,580,793 $ 2,030,914 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 (1) Maturity dates exclude three whole loans with amortized costs of $43.8 million and $27.9 million, in maturity default at June 30, 2022 and December 31, 2021, respectively. ( 2 ) At June 30, 2022, the amortized costs of the floating-rate CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $17.5 million, $106.7 million and $1.9 billion in 2022, 2023 and 2024 and thereafter, respectively. At December 31, 2021, the amortized costs of the floating-rate 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 June 30, 2022, approximately 25.6%, 24.1% and 16.5% of the Company’s CRE loan portfolio was concentrated in the Southwest, Southeast and Mountain regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries. 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. At June 30, 2022 and December 31, 2021, no single loan or investment represented more than 10% of the Company’s total assets, and no single investor group generated over 10% of the Company’s 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 June 30, 2022, the Company had no loan principal paydowns receivable. 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 in January 2022. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 6 - FINANCING RECEIVABLES The following table shows the activity in the allowance for credit losses for the six months ended June 30, 2022 and year ended December 31, 2021 (in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 CRE Loans CRE Loans Allowance for credit losses: Allowance for credit losses at beginning of period $ 8,805 $ 34,310 Reversal of credit losses, net (1,278 ) (21,262 ) Charge offs (2,297 ) (4,243 ) Allowance for credit losses at end of period $ 5,230 $ 8,805 During the three months ended June 30, 2022, the Company recorded a provision for expected credit losses of approximately $524,000 primarily attributable to the negative impact of macroeconomic factors focused on increases in inflation, energy costs and interest rates, partially offset by improvements in property-level cash flows. During the six months ended June 30, 2022, reversal of expected credit losses in the first quarter of 2022 outpaced the provision during the second quarter of 2022, resulting in a net reversal of $1.3 million in connection with resolutions of loans with specific reserves and continued improvements in property-level operations. During the three and six months ended June 30, 2021, the Company recorded a reversal of expected credit losses of $10.3 million and $16.0 million, respectively, in connection with declines in expected unemployment and continued improvement in macroeconomic factors, loan paydowns and improved collateral operating performance . At June 30, 2022, the Company individually evaluated one hotel loan in the Northeast region with a principal balance of $14.0 million, one retail loan in the Northeast region with a principal balance of $8.0 million and one office loan in the Southwest region with principal balance $21.8 million for which foreclosure was determined to be probable. Each loan had an as-is appraised value in excess of its principal and interest balances, and, as such, had no current expected credit losses (“CECL”) allowance at June 30, 2022. In July 2022, the Company received the deed-in-lieu of foreclosure on the hotel property. At December 31, 2021, two additional loans were individually evaluated for impairment: a retail loan in the Pacific region and a hotel loan in the East North Central region. Both loans were repaid in January 2022. The repayment of the retail loan in the Pacific region resulted in a charge off of $2.3 million against the allowance for credit losses. An individual CECL allowance was established for this loan during the fourth quarter of 2021. 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 reunderwritten loan-to-collateral value 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. Loans are rated a 2 at origination. 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 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high-quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has a material vacancy rate and significant rollover of remaining tenants. • An updated appraisal is required upon designation and updated on an as-needed basis. 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. In order to calculate the historical mean loss ratio, the Company utilizes its full, 16-year underwriting history in the determination of historical losses, along with the market loss history from a selected population from an engaged third-party provider’s database that were similar to its loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amount s in the footnote s ): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At June 30, 2022: Whole loans, floating-rate $ — $ 1,757,379 $ 182,918 $ 115,692 $ 14,000 $ 2,069,989 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,757,379 $ 182,918 $ 120,392 $ 14,000 $ 2,074,689 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 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in the footnotes): 2022 2021 2020 2019 2018 Prior Total (1) At June 30, 2022: Whole loans, floating-rate: (2) Rating 2 $ 365,066 $ 1,206,132 $ 120,232 $ 46,463 $ 19,486 $ — $ 1,757,379 Rating 3 — 47,882 25,357 47,565 44,616 17,498 182,918 Rating 4 — — — 51,234 64,458 — 115,692 Rating 5 — — — 14,000 — — 14,000 Total whole loans, floating-rate 365,066 1,254,014 145,589 159,262 128,560 17,498 2,069,989 Mezzanine loan (rating 4) — — — — 4,700 — 4,700 Total $ 365,066 $ 1,254,014 $ 145,589 $ 159,262 $ 133,260 $ 17,498 $ 2,074,689 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 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively (2) Acquired CRE whole loans are grouped within each loan’s year of origination. At June 30, 2022 and December 31, 2021, the Company had one mezzanine loan included in other assets that had no carrying value. Loan Portfolio 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 June 30, 2022: Whole loans, floating-rate $ 14,000 $ — $ 8,025 $ 22,025 $ 2,047,964 $ 2,069,989 $ — Mezzanine loan — — — — 4,700 4,700 — Total $ 14,000 $ — $ 8,025 $ 22,025 $ 2,052,664 $ 2,074,689 $ — 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 (1) During the three and six months ended June 30, 2022, the Company did not recognize interest income on one loan with a principal payment greater than 90 days past due at June 30, 2022. During the three and six months ended June 30, 2021, the Company recognized interest income of $572,000 and $1.2 million, respectively, on three loans with principal payments greater than 90 days past due at June 30, 2021. (2) Includes one whole loan, with an amortized costs of $21.8 million, in maturity default at June 30, 2022. Includes one whole loan, with an amortized cost of $8.0 million, in maturity default at December 31, 2021. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022 and December 31, 2021, the Company had three CRE loans in maturity default with total amortized costs of $43.8 million and $27.9 million, respectively. During the six months ended June 30, 2022, two whole loans in maturity default 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. At June 30, 2022, three whole loans that had maturity defaults, with a total amortized cost of $43.8 million, were past due on interest payments. 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. Troubled Debt Restructurings There were no TDRs for the six months ended June 30, 2022 and 2021. During the six months ended June 30, 2022, the Company entered into six agreements that extended loans by a weighted average period of two months and, in certain cases, modified certain other loan terms. One formerly forborne borrower was in maturity default at June 30, 2022. No loan modifications during the resulted in TDRs. |
INVESTMENTS IN REAL ESTATE AND
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES | NOTE 7 - INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES During the six months ended June 30, 2022 the Company acquired two real estate properties through direct equity investments. The following table summarizes the acquisition date values of acquired assets and assumed liabilities during the six months ended June 30, 2022 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 16,327 Building 65,488 Building and tenant improvements 577 Personal property 4,402 Investment in real estate 86,794 Right of use assets 19,664 Cash and other assets 2,117 Intangible assets 9,748 Total 118,323 Liabilities assumed: Mortgage payable (18,089 ) Operating leases (43,260 ) Other liabilities (311 ) Subtotal (61,660 ) Fair value of net asset acquired 56,663 Non-controlling interest (5,036 ) Total fair value at acquisition of net assets acquired $ 51,627 The following table summarizes the book value of the Company’s investments in real estate and related intangible assets (in thousands, except amounts in the footnotes): June 30, 2022 December 31, 2021 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) $ 113,502 $ (998 ) $ 112,504 $ 27,065 $ (191 ) $ 26,874 Right of use assets (2)(3) 19,664 (68 ) 19,596 — — — Intangible assets (4) 11,474 (2,091 ) 9,383 1,726 (806 ) 920 Subtotal 144,640 (3,157 ) 141,483 28,791 (997 ) 27,794 Investments in real estate from lending activities: Investment in real estate (5) 34,302 (2,450 ) 31,852 34,124 (1,689 ) 32,435 Property held for sale (6) 17,657 — 17,657 17,846 — 17,846 Right of use assets (3)(7) 5,603 (138 ) 5,465 5,603 (95 ) 5,508 Intangible assets (8) 3,337 (550 ) 2,787 3,337 (380 ) 2,957 Subtotal 60,899 (3,138 ) 57,761 60,910 (2,164 ) 58,746 Total 205,539 (6,295 ) 199,244 89,701 (3,161 ) 86,540 Liabilities assumed: Investments in real estate, equity: Mortgage payable (18,089 ) (52 ) (18,141 ) — — — Lease liabilities (3) (43,260 ) 131 (43,129 ) — — — Other liabilities (9) (247 ) 165 (82 ) (247 ) 78 (169 ) Subtotal (61,596 ) 244 (61,352 ) (247 ) 78 (169 ) Investments in real estate from lending activities: Lease liabilities (3) (3,113 ) 76 (3,037 ) (3,113 ) 53 (3,060 ) Total (64,709 ) 320 (64,389 ) (3,360 ) 131 (3,229 ) Total net assets ( 9) $ 140,830 $ 134,855 $ 86,341 $ 83,311 (1) Includes $38.7 million and $22.4 million of land, which is not depreciable, at June 30, 2022 and December 31, 2021, respectively. (2) Right of use assets include a right of use associated with an acquired ground lease of $42.7 million accounted for as an operating lease, an above-market lease intangible asset of $19.1 million and a customer list intangible of $491,000 at June 30, 2022. Amortization of the below-market and above-market lease intangible is booked to real estate expenses on the consolidated statements of operations. (3) Refer to Note 8 for additional information on the Company’s remaining operating leases. (4) Carrying value includes approximately $53,000 and $819,000 of an acquired in-place lease intangible asset and $50,000 and $101,000 of an acquired leasing commission intangible asset at June 30, 2022 and December 31, 2021, respectively. (5) Includes $134,000 and $129,000 of building renovation assets at carrying value at June 30, 2022 and December 31, 2021, respectively, made subsequent to the date of acquisition. (6) Includes a property acquired in October 2021 that is being marketed for sale. (7) Right of use assets include a and December 31, 2021, respectively. (8) Carrying value includes franchise agreement intangible ass ets of $2.6 million and $2.6 million and a customer list intangible asset of $228,000 and $311,000 at June 30, 2022 and December 31, 2021, respectively. (9) Excludes items of working capital, either acquired or assumed. The right of use assets and lease liabilities comprises the following two acquired ground leases determined to be operating leases: • The first has an associated below-market lease intangible asset. The lease payments on the ground lease 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 number of periods. The Company recorded offsetting amortization and accretion on its ground lease right of use assets and lease liabilities of approximately $12,000 during the three months ended June 30, 2022 and 2021 and $23,000 during the six months ended June 30, 2022 and 2021, respectively. • The second has an associated above-market lease intangible liability. The Company recorded an amortization of $51,000 related to the right of use asset and amortization on its ground lease liability of $114,000 during the three and six months ended June 30, 2022. During the three and six months ended June 30, 2022, the Company recorded amortization expense of approximately $437,000 and $1.4 million, respectively, on its intangible assets. During the three and six months ended June 30, 2021, the Company recorded amortization expense of $94,000 and $188,000, respectively, on its intangible assets. The Company expects to record amortization expense of $2.4 million, $2.0 million, $1.4 million, $1.3 million and $1.2 million during the 2022, 2023, 2024, 2025 and 2026 fiscal years, respectively, on its intangible assets. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 8 - LEASES In addition to the ground lease discussed in Note 7, 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 also 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): June 30, 2022 December 31, 2021 Operating Leases: Right of use assets $ 419 $ 443 Lease liabilities $ (454 ) $ (477 ) Weighted average remaining lease term: 6.1 years 6.6 years Weighted average discount rate: 10.65 % 10.65 % The following table summarizes the Company’s operating lease costs and cash payments for the periods presented (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Lease Cost: Operating lease cost $ 24 $ 25 $ 48 $ 25 Other Information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24 $ — $ 47 $ — 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 (217 ) Total $ 454 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 9 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The Company’s investments in unconsolidated entities at June 30, 2022 and December 31, 2021 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 three and six months ended June 30, 2022, 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 $19,000 and $35,000, respectively. During the three and six months ended June 30, 2021, the Company recorded dividends of $16,000 and $32,000, respectively. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 10 - 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, secured term warehouse financing facilities, a senior secured financing facility, a mortgage payable, 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 the footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2022: ACR 2021-FL1 Senior Notes $ 675,223 $ 4,618 $ 670,605 3.01 % 14.0 years $ 802,643 ACR 2021-FL2 Senior Notes 567,000 5,648 561,352 3.32 % 14.6 years 700,000 Senior secured financing facility 19,875 3,127 16,748 5.75 % 5.1 years 176,545 CRE - term warehouse financing facilities (1) 331,810 3,408 328,402 3.62 % 2.3 years 434,671 Mortgage payable 18,710 569 18,141 5.00 % 2.8 years 25,400 4.50% Convertible Senior Notes 48,175 179 47,996 4.50 % 46 days — 5.75% Senior Unsecured Notes (2) 150,000 2,827 147,173 5.75 % 4.1 years — Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.09 % 14.2 years — Total $ 1,862,341 $ 20,376 $ 1,841,965 3.58 % 10.7 years $ 2,139,259 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 (3) 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 (1) 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 (2) 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 ( 1 ) Principal outstanding includes accrued interest payable of $409,000 and $58,000 at June 30, 2022 and December 31, 2021, respectively. ( 2 ) Includes deferred debt issuance costs of $32,000 and $306,000 at June 30, 2022 and December 31, 2021, respectively, associated with the 12.00% senior unsecured notes due 2027 (“12.00% Senior Unsecured Notes”) that had no outstanding balance at June 30, 2022 and December 31, 2021, respectively. ( 3 ) Value of collateral excludes interest income of $730,000 and exit fees of $228,000 received as of December 31, 2021. Securitizations The following table sets forth certain information with respect to the Company’s consolidated securitizations at June 30, 2022 (in thousands, except amount in footnotes): Closing Date Maturity Date Permitted Funded Companion Participation Acquisition Period End (1) Reinvestment Period End (2) Total Note Paydowns Received from Closing Date through June 30, 2022 ACR 2021-FL1 May 2021 June 2036 N/A May 2023 $ — ACR 2021-FL2 December 2021 January 2037 N/A December 2023 $ — (1) The permitted funded companion participation acquisition 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 before the end of the period may be used to acquire CRE loans for reinvestment into the securitization. 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 and preferred shares of the securitizations held by the Company at June 30, 2022 and December 31, 2021 were eliminated in consolidation. XAN 2020-RSO8 In March 2020, the Company closed Exantas Capital Corp. 2020-RSO8, Ltd. (“XAN 2020-RSO8”), a $522.6 million CRE debt securitization transaction that provided financing for CRE loans. In March 2022, the Company exercised the optional redemption of XAN 2020-RSO8, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. XAN 2020-RSO9 In September 2020, the Company closed Exantas Capital Corp. 2020-RSO9, Ltd. (“XAN 2020-RSO9”), a $297.0 million CRE debt securitization transaction that provided financing for CRE loans. 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. Corporate Debt 4.50% Convertible Senior Notes The Company issued $143.8 million aggregate principal of its 4.50% convertible senior notes due 2022 (“4.50% Convertible Senior Notes”) in August 2017. During the six months ended June 30, 2022, the Company repurchased $39.8 million of its 4.50% Convertible Senior Notes, resulting in a charge to earnings of $574,000, comprising an extinguishment of debt charge of $460,000 in connection with the acceleration of the market discount and interest expense of $114,000 in connection with the acceleration of deferred debt issuance costs. During the year ended December 31, 2021, the Company repurchased $55.7 million of its 4.50% Convertible Senior Notes. The following table summarizes the 4.50% Convertible Senior Notes at June 30, 2022 (dollars in thousands, except the conversion rate, conversion price and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3) Conversion Price Maturity Date 4.50% Convertible Senior Notes $ 48,175 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 three and six months ended June 30, 2022 and 2021, 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”). The 4.50% Convertible Senior Notes are convertible at the option of the holder at any time up until one business day before the respective 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 closing price of the Company’s common stock was $8.19 on June 30, 2022, which did not exceed the conversion price of its 4.50% Convertible Senior Notes at June 30, 2022. Senior Unsecured Notes 12.00% Senior Unsecured Notes Due 2027 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 and MassMutual $42.0 million and $8.0 million aggregate principal amount, respectively, of 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. The Company did not issue any additional notes under this agreement and it expired as of July 31, 2022. Senior Secured Financing Facility, Term Warehouse Financing Facilities and Mortgage Payable Borrowings under the Company’s senior secured financing facility, term warehouse financing facilities and mortgage payable are guaranteed by the Company or one or more of its subsidiaries. The following table sets forth certain information with respect to the Company’s senior secured financing, term warehouse financing facilities and mortgage payable (dollars in thousands, except amounts in footnotes): June 30, 2022 December 31, 2021 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) $ 16,748 $ 176,545 7 5.75 % $ (3,432 ) $ 170,791 9 5.75 % CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 207,784 274,798 11 3.54 % 18,875 37,167 3 2.85 % Morgan Stanley Mortgage Capital Holdings LLC (4) 120,618 159,873 9 3.75 % 47,896 64,860 3 2.03 % Mortgage Payable Readycap Commercial, LLC (5) 18,141 25,400 1 5.00 % — — — — Total $ 363,291 $ 636,616 $ 63,339 $ 272,818 (1) Includes $3.1 million and $3.4 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively. (2) Outstanding borrowings include accrued interest payable. ( 3 ) Includes $1.5 million and $1.8 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively, in addition to $142,000 and $356,000 of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively, from other term warehouse financing facilities with no balance. ( 4 ) Includes $1.8 million and $2.2 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively. (5) Includes $569,000 of deferred debt issuance costs at June 30, 2022. The following table shows information about the amount at risk under the warehouse financing facilities and mortgage payable (dollars in thousands): Amount at Risk Weighted Average Remaining Maturity Weighted Average Interest Rate At June 30, 2022: Senior Secured Financing Facility (1) Massachusetts Mutual Life Insurance Company $ 157,214 5.1 years 5.75 % CRE - Term Warehouse Financing Facilities (1) JPMorgan Chase Bank, N.A. $ 66,315 2.3 years 3.54 % Morgan Stanley Mortgage Capital Holdings LLC $ 38,020 2.4 years 3.75 % Mortgage Payable (2) Readycap Commercial, LLC $ 6,635 2.8 years 5.00 % (1) Equal to the total of the estimated fair value of real estate owned property or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. (2) Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the mortgage payable agreement liability and accrued interest payable. The Company was in compliance with all financial covenants in each of the respective agreements at June 30, 2022 and Senior Secured Financing Facility In July 2020, an indirect, wholly-owned subsidiary of the Company (“Holdings”), along with its direct wholly-owned subsidiary (the “Borrower”), entered into a loan and servicing agreement (the “MassMutual Loan Agreement”) with MassMutual and the other lenders party thereto (the “Lenders”) to finance the Company’s core CRE lending business. In connection with the MassMutual Loan Agreement, the Company , with certain of its subsidiaries , entered into a Guaranty (the “MassMutual Guaranty”) in favor of the secured parties under the MassMutual Loan Agreement. Pursuant to the MassMutual Guaranty, the Company fully guaranteed all payments and performance of the Borrower and Holdings under the MassMutual Loan Agreement. Additionally, the Company and certain of its subsidiaries made certain representations and warranties and agreed not to incur debt or liens, each subject to certain exceptions, and agreed to provide the Lenders with certain information. The MassMutual Loan Agreement was amended in several instances pursuant to which (i) MassMutual consented to the formation of certain subsidiaries to hold real estate and (ii) such subsidiaries agreed to enter into guaranty agreements in favor of the secured parties under the MassMutual Loan Agreement. In July 2022, Holdings, the Borrower and the Lenders entered into the Fifth Amendment to the MassMutual Loan Agreement (the “Amendment”) to (i) extend the availability period from July 31, 2022 to August 31, 2022 and (ii) amend the interest rate on the outstanding principal amount of the borrowings, with respect to borrowings made in connection with eligible portfolio assets transferred to any borrower after the effective date of the Amendment to the rate per annum determined by the initial lender or otherwise 5.75% per annum. CRE - Term Warehouse Financing Facilities In April 2018, an indirect, wholly-owned subsidiary of the Company entered into a master repurchase agreement (the “Barclays Facility”) with Barclays Bank PLC (“Barclays”) to finance the origination of CRE loans. In February 2022, such subsidiary entered into the Third Amendment to Master Repurchase Agreement (the “Barclays Amendment”) with Barclays, which amended the Barclays Facility to add market terms regarding the replacement of LIBOR upon determination of a benchmark transition event. In November 2021, an indirect, wholly-owned subsidiary of the Company entered into a master repurchase and securities contract agreement (the “Morgan Stanley Facility”) with Morgan Stanley Mortgage Capital Holdings LLC (“Morgan Stanley”) to finance the origination of CRE loans. In January 2022, such subsidiary entered into the First Amendment to Master Repurchase and Securities Contract Agreement (the “Morgan Stanley Amendment”) with Morgan Stanley, which amended the Morgan Stanley Facility to add market terms regarding the replacement of LIBOR upon determination of a benchmark transition event. Mortgage Payable In April 2022, Chapel Drive West, LLC, a wholly owned subsidiary of the FSU Student Venture, entered into a Loan Agreement (the “Mortgage”) with Readycap Commercial, LLC (“Readycap”) to finance the acquisition of a student housing complex. The Mortgage is interest only and has a maximum principal balance of $20.4 million, of which, $18.7 million was advanced in the initial funding. The Mortgage charges interest of one-month SOFR plus a spread of 3.80% and matures in April 2025, subject to two one-year The Mortgage 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. Contractual maturity dates of the Company’s borrowings’ principal outstanding by category and year are presented in the table below (in thousands): Total 2022 2023 2024 2025 2026 and Thereafter At June 30, 2022: CRE securitizations $ 1,242,223 $ — $ — $ — $ — $ 1,242,223 Senior secured financing facility 19,875 — — — — 19,875 CRE - term warehouse financing facilities (1) 331,810 — — 331,810 — — Mortgage payable 18,710 — — — 18,710 — 4.50% Convertible Senior Notes 48,175 48,175 — — — — 5.75% Senior Unsecured Notes 150,000 — — — — 150,000 Unsecured junior subordinated debentures 51,548 — — — — 51,548 Total $ 1,862,341 $ 48,175 $ — $ 331,810 $ 18,710 $ 1,463,646 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 11 - SHARE ISSUANCE AND REPURCHASE In May 2021, and subsequently in June 2021, the Company issued a total of % Series D Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”) at a public offering price of $ 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 % 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 six months ended June 30, 2022 , the Company did not issue any Series D Preferred Stock through this 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 distributions, 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 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 June 30, 2022, 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, and in 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 six months ended June 30, 2022 and 2021, the Company repurchased $6.4 million and $13.8 million of its common stock, respectively, representing approximately 552,282 and 1,018,453 shares, respectively. At June 30, 2022, $10.0 million remains available under this repurchase plan. In connection with the Note and Warrant Purchase Agreement, the 12.00% Senior Unsecured Notes Oaktree and MassMutual On July 6, 2022, MassMutual exercised their warrants to purchase 74,666 shares. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 12 - 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 to (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 Plans, determined on a combined basis, is 1,700,817 shares of common stock. The Company recognized restricted stock-based compensation expense of $991,000 and $1.7 million during the three and six months ended June 30, 2022, respectively, and $171,000 and $190,000 during the three and six months ended June 30, 2021, respectively. The following table summarizes the Company’s restricted common stock transactions: Manager Directors Total Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2022 299,999 33,330 333,329 $ 17.39 Issued 299,999 33,334 333,333 11.85 Vested (74,999 ) (8,330 ) (83,329 ) 17.39 Forfeited — — — — Unvested shares at June 30, 2022 524,999 58,334 583,333 $ 14.22 The unvested restricted common stock shares are expected to vest during the following years: Year Shares 2023 166,658 2024 166,658 2025 166,671 2026 83,346 Total 583,333 The shares issued during the six months ended June 30, 2022 will vest in installments over a four-year 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 three and six months ended June 30, 2022 or 2021. The Omnibus Plan and the Manager Plan are administered by the compensation committee of the 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 16 for a description of awards made under the Manager Plan. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented (dollars in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income $ 5,522 $ 13,639 $ 7,606 $ 26,695 Net income allocated to preferred shares (4,856 ) (3,568 ) (9,711 ) (6,156 ) Net loss allocable to non-controlling interest, net of taxes 24 — 24 — Net income (loss) allocable to common shares $ 690 $ 10,071 $ (2,081 ) $ 20,539 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 8,421,800 9,245,279 8,525,481 9,485,593 Weighted average number of warrants outstanding (1) 466,661 466,661 466,661 466,661 Total weighted average number of common shares outstanding - basic 8,888,461 9,711,940 8,992,142 9,952,254 Effect of dilutive securities - unvested restricted stock 25,711 8,669 — 8,957 Weighted average number of common shares outstanding - diluted 8,914,172 9,720,609 8,992,142 9,961,211 Net income (loss) per common share - basic $ 0.08 $ 1.04 $ (0.23 ) $ 2.06 Net income (loss) per common share - diluted $ 0.08 $ 1.04 $ (0.23 ) $ 2.06 (1) See Note 11 for further details regarding the warrants. |
DISTRIBUTIONS
DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 14 - 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) and tax loss carryforwards, 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 distributions are, and will be, determined by the Board, which will also consider the composition of any distributions declared, including the option of paying a portion in cash and the balance in additional shares of common stock. For the three months ended June 30, 2022, the Company declared and subsequently paid its Series C Preferred Stock and Series D Preferred Stock distributions of $0.54 per share and $0.49 per share, respectively. For the three months ended June 30, 2021, the Company declared and subsequently paid its Series C Preferred Stock and Series D Preferred Stock distributions of $0.54 and $0.38 per share, respectively. The Company did not pay any common share distributions for the three months ended June 30, 2022 and 2021. The following tables present distributions declared (on a per share basis) for the six months ended June 30, 2022 and the year ended December 31, 2021: Series C Preferred Stock Series D Preferred Stock Date Paid Total Distributions Paid Distributions Per Share Date Paid Total Distributions Paid Distributions Per Share (in thousands) (in thousands) 2022 June 30 August 1 $ 2,588 $ 0.5390625 August 1 $ 2,268 $ 0.4921875 March 31 May 2 $ 2,588 $ 0.5390625 May 2 $ 2,268 $ 0.4921875 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 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 15 - ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in net unrealized loss on derivatives, the sole component of accumulated other comprehensive loss, for the six months ended June 30, 2022 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Loss on Derivatives Balance at January 1, 2022 $ (8,127 ) Amounts reclassified from accumulated other comprehensive loss (1) 917 Balance at June 30, 2022 $ (7,210 ) (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 | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 16 - RELATED PARTY TRANSACTIONS 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 three and six months ended June 30, 2022, the Manager earned base management fees of approximately $1.7 million and $3.4 million, respectively. For the three and six months ended June 30, 2021, the Manager earned base management fees of approximately $1.4 million and $2.7 million, respectively. No incentive compensation was earned for the three and six months ended June 30, 2022 and 2021. At June 30, 2022 and December 31, 2021, $558,000 and $561,000, respectively, of base management fees were payable by the Company to the Manager. There was no incentive compensation payable at June 30, 2022 and December 31, 2021. The Manager and its affiliates provide the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimburses 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 reimburses out-of-pocket expenses and certain other costs incurred by the Manager that related directly to the Company’s operations. For the three and six months ended June 30, 2022, the Company reimbursed the Manager $1.0 million and $3.0 million, respectively, for all such compensation and costs. For the three and six months ended June 30, 2021, the Company reimbursed the Manager $1.4 million and $2.6 million, respectively, for all such compensation and costs. At June 30, 2022 and December 31, 2021, the Company had payables to the Manager pursuant to the Management Agreement totaling approximately $362,000 and $1.2 million, respectively, related to such compensation and costs. The Company’s base management fee payable and expense reimbursements payable were recorded in management fee payable - related party and accounts payable and other liabilities on the consolidated balance sheet, respectively. On July 31, 2020, ACRES RF, then known as RCC Real Estate, Inc., 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 three and six months ended June 30, 2022, the Company recorded interest income of $87,000 and $174,000, respectively, on the ACRES Loan in other income (expense) on the consolidated statements of operations. During three and six months ended June 30, 2021, the Company recorded interest income of $89,000 and $178,000, respectively, on the ACRES Loan. At June 30, 2022, the ACRES Loan had a principal balance and accrued interest receivable of $11.5 million and $29,000, respectively, recorded in loan receivable - related party and accrued interest receivable, respectively, on the consolidated balance sheet. At December 31, 2021, the ACRES Loan had a principal balance of $11.6 million, recorded in loan receivable - related party on the consolidated balance sheet, and no accrued interest receivable. During the six months ended June 30, 2022, the Company originated one CRE whole loan with a par value of $38.6 million that was refinanced from a loan originated by affiliates of the Manager. 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 six months ended June 30, 2022, the Company acquired % equity in property for $38.6 million, that previously served as collateral for a loan held by an affiliate of the Manager prior to the acquisition. During the year ended December 31, 2021, the Company acquired 100% equity in one property for $14.2 million, that previously served as collateral for a loan held by an affiliate of the Manager prior to the acquisition. At June 30, 2022, the Company retained equity in two 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 these transactions and was not separately compensated for managing the securitization entities and their 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 Exantas Capital Corp. 2019-RSO7, Ltd. (“XAN 2019-RSO7”), XAN 2020-RSO8 and XAN 2020-RSO9 and serves as special servicer of ACRES Commercial Realty 2021-FL1 Issuer, Ltd. (“ACR 2021-FL1”) and ACRES Commercial Realty 2021-FL2 Issuer, Ltd. (“ACR 2021-FL2”). During the three and six months ended June 30, 2022, ACRES Capital Servicing received no portfolio servicing fees and $23,000 in special servicing fees recorded as a reduction to interest income in the consolidated statement of operations. During three and six months ended June 30, 2021, ACRES Capital Servicing received no portfolio servicing fees and $14,000 in 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 Management, 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, December 2021 and April 2022, the joint venture entities of the three 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 1.25% and 1.5% of all project costs. During the three and six months ended June 30, 2022 $16,000 in fees were incurred and paid to DevCo for services rendered under the Development Agreements . Relationship with ACRES Share Holdings, LLC. In June 2021, the Company’s Manager 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 six months ended June 30, 2022 that will vest 25% each year on the anniversary of the issuance date over four years. During the year ended December 31, 2021, the Company issued 299,999 restricted shares to ACRES Share Holdings, LLC under the Manager Plan that will vest 25% each year on the anniversary of the issuance date over four years. See Note 12 for additional details. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 17 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company had no financial instruments carried at fair value on a recurring basis at June 30, 2022 and December 31, 2021. 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 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 4.02% to 9.62% and 3.01% to 9.00% at June 30, 2022 and December 31, 2021, 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 Company’s mezzanine loan is discounted at a rate of 10.00%. 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 and the mortgage payable are both variable-rate debt instruments indexed to either LIBOR or Term SOFR and reset periodically. 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 by using a discounted cash flow model. The fair values of the junior subordinated 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 assets that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): 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 June 30, 2022: Assets: CRE whole loans $ 2,064,986 $ 2,084,242 $ — $ — $ 2,084,242 CRE mezzanine loan $ 4,473 $ 4,700 $ — $ — $ 4,700 Loan receivable - related party $ 11,450 $ 9,876 $ — $ — $ 9,876 Liabilities: . Senior notes in CRE securitizations $ 1,231,957 $ 1,190,771 $ — $ — $ 1,190,771 Senior secured financing facility $ 16,748 $ 19,875 $ — $ — $ 19,875 Warehouse financing facilities $ 328,402 $ 331,810 $ — $ — $ 331,810 Mortgage payable $ 18,141 $ 18,710 $ — $ — $ 18,710 4.50% Convertible Senior Notes $ 47,996 $ 48,108 $ — $ — $ 48,108 5.75% Senior Unsecured Notes (1) $ 147,173 $ 140,190 $ — $ — $ 140,190 Junior subordinated notes $ 51,548 $ 35,702 $ — $ — $ 35,702 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 facility $ 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 (1) Carrying value at June 30, 2022 and December 31, 2021 includes deferred debt issuance costs of $32,000 and $307,000, respectively, associated with the 12.00% Senior Unsecured Notes, that had no outstanding balance at both June 30, 2022 and December 31, 2021. |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 18 - 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 historically 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 prior financed CMBS portfolio in April 2020. At termination, the Company realized a loss of $11.8 million. At June 30, 2022 and December 31, 2021 At June 30, 2022 and December 31, 2021, the Company had an unrealized gain of $302,000 and $347,000, respectively, attributable to two terminated interest rate swaps, in accumulated other comprehensive loss on the consolidated balance sheets, to be accreted into earnings over the remaining life of the debt. For each of the three months ended June 30, 2022 and 2021, the Company recorded accretion income, reported in interest expense on the consolidated statements of operations, of $23,000 to accrete the accumulated other comprehensive income on the terminated swap agreements. For each of the six months ended June 30, 2022 and 2021 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. In order to mitigate this market price risk, the Company entered into interest rate swap contracts in which it paid 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 for the six months ended June 30, 2022 and 2021 (in thousands): Derivatives Six Months Ended June 30, 2022 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (917 ) Derivatives Six Months Ended June 30, 2021 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (918 ) (1) Negative values indicate a decrease to the associated consolidated statement of operations line items. |
OFFSETTING OF FINANCIAL LIABILI
OFFSETTING OF FINANCIAL LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL LIABILITIES | NOTE 19 - OFFSETTING OF FINANCIAL LIABILITIES The following table presents a summary of the Company’s offsetting of financial liabilities (in thousands, except amounts in footnotes): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Liabilities (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Liabilities Included on the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At June 30, 2022: Warehouse financing facilities (2) $ 328,402 $ — $ 328,402 $ 328,402 $ — $ — At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities and repurchase agreements. ( 2 ) The combined fair values of loans pledged against the Company’s various term warehouse financing facilities and repurchase agreements was $434.7 million and $102.0 million at June 30, 2022 and December 31, 2021, 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 20 - 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 June 30, 2022. The Company’s subsidiary, 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 June 30, 2022 and December 31, 2021, no such litigation demand was outstanding. Reserves for such litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.2 million and $1.3 million at June 30, 2022 and December 31, 2021, respectively. The reserves for mortgage repurchases and indemnifications are included in accounts payable and other liabilities on the consolidated balance sheets. The Company did not have any pending litigation matters or general litigation reserve at June 30, 2022 or December 31, 2021. 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 June 30, 2022 Other Contingencies PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At June 30, 2022 and December 31, 2021, 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 $167.9 million and $157.6 million in unfunded loan commitments at June 30, 2022 and December 31, 2021, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 21 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events, other than those described in Notes 6, 10 and 11, that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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. |
Basis of Presentation | Basis of Presentation All adjustments necessary to fairly present the Company’s financial position, results of operations and cash flows have been made. |
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. Many countries responded to the initial outbreak in late 2019 by instituting quarantines, restricting 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 most countries around the world have eased restrictions and financial markets have stabilized to some degree in connection with the development and distribution of vaccines and other effective COVID-19 treatments, the pandemic continues to cause uncertainty on the U.S. and global economies, generally, and the CRE business, specifically. Estimates and assumptions as of June 30, 2022, are 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 June 30, 2022 . 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 June 30, 2022 and December 31, 2021, approximately $31.2 million and $33.3 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 primarily for the Company’s CRE debt securitizations, term warehouse financing facilities and repurchase agreements as well as cash held in 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): June 30, 2022 2021 Cash and cash equivalents $ 34,870 $ 90,805 Restricted cash 25,367 15,003 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 60,237 $ 105,808 |
Investment In Real Estate | Investment in Real Estate The Company depreciates investments in real estate and amortizes related intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements 180 days to 3 years FF&E 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years |
Income Taxes | Income Taxes The Company recorded a full valuation allowance against its net deferred tax assets (tax effected expense of $21.6 million) at June 30, 2022, as the Company believes it is more likely than not that the deferred tax assets will 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 by the Company’s taxable REIT subsidiaries. |
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. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in 2022 In August 2020, the Financial Accounting Standards Board (“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, if no other features require bifurcation and recognition as derivatives and the convertible instrument is 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. Adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards to be Adopted in Future Periods In March 2022, the FASB issued an amendment eliminating certain previously issued accounting guidance for troubled debt restructurings (“TDRs”) and enhancing disclosure requirements surrounding refinancings, restructurings, and write-offs. Current GAAP provides an exception to general recognition and measurement guidance for loan restructurings if they meet specific criteria to be considered TDRs. If a modification is a TDR, incremental expected losses are recorded in the allowance for credit losses upon modification and specific disclosures are required. The new amendment eliminates the TDR recognition and measurement guidance and requires the reporting entity to evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with accounting for other loan modifications. The amendment also requires public business entities to disclose current-period gross write-offs by year of origination for certain financing receivables and net investments in leases. For entities that have adopted the previously issued guidance amended by this update, which the Company did during the year ended December 31, 2020, this update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for entities that have adopted the previously issued guidance amended by this update. The Company is in the process of evaluating the impact of this guidance. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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): June 30, 2022 2021 Cash and cash equivalents $ 34,870 $ 90,805 Restricted cash 25,367 15,003 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 60,237 $ 105,808 |
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 related intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements 180 days to 3 years FF&E 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 24,571 $ 317 $ 24,888 Accrued interest receivable 4,893 — 4,893 CRE loans, pledged as collateral (1) 1,468,003 — 1,468,003 Other assets 61 56 117 Total assets (2) $ 1,497,528 $ 373 $ 1,497,901 LIABILITIES Accounts payable and other liabilities $ 87 $ — $ 87 Accrued interest payable 1,415 — 1,415 Borrowings 1,231,957 — 1,231,957 Total liabilities $ 1,233,459 $ — $ 1,233,459 (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 June 30, 2022 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 7 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,555 LIABILITIES Accrued interest payable 229 N/A Borrowings 51,548 N/A Total liabilities 51,777 Net (liability) asset $ (50,222 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): For the Six Months Ended June 30, 2022 2021 Supplemental cash flows: Interest expense paid in cash $ 24,736 $ 20,132 Income taxes paid in cash $ 180 $ — Non-cash operating activities include the following: Receipt of right of use assets $ — $ (479 ) Execution of operating leases $ — $ 479 Non-cash financing activities include the following: Distributions on preferred stock accrued but not paid $ 3,262 $ 2,706 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022: CRE loans held for investment: Whole loans (5)(6) 88 $ 2,084,242 $ (14,253 ) $ 2,069,989 $ (5,003 ) $ 2,064,986 1M BR plus 2.75% to 1M BR plus 8.50% July 2022 to July 2026 Mezzanine loan (5) 1 4,700 — 4,700 (227 ) 4,473 10.00% June 2028 Total CRE loans held for investment $ 2,088,942 $ (14,253 ) $ 2,074,689 $ (5,230 ) $ 2,069,459 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 (1) Amounts include unamortized loan origination fees of $14.1 million and $13.6 million and deferred amendment fees of $132,000 and $307,000 at June 30, 2022 and December 31, 2021, respectively. Additionally, the amounts include unamortized loan acquisition costs of $7,300 at December 31, 2021. ( 2 ) The Company’s whole loan portfolio of $2.1 billion and $1.9 billion had weighted-average one-month benchmark rate (“BR”) floors of 0.62% and 0.75% at June 30, 2022 and December 31, 2021, respectively. Benchmark rates comprise one-month London Interbank Offered Rate (“LIBOR”) or one-month Term Secured Overnight Financing Rate (“SOFR”). At June 30, 2022 and December 31, 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. ( 3 ) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms that may be available to the borrowers. ( 4 ) Maturity dates exclude three whole loans, with amortized costs of $43.8 million and $27.9 million, in maturity default at June 30, 2022 and December 31, 2021, respectively. ( 5 ) Substantially all loans are pledged as collateral under various borrowings at June 30, 2022 and December 31, 2021. ( 6 ) CRE whole loans had $167.9 million and $157.6 million in unfunded loan commitments at June 30, 2022 and December 31, 2021, respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the loan agreement, and any necessary approvals have been obtained. |
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 June 30, 2022: Whole loans (1) $ 220,638 $ 229,483 $ 1,576,093 $ 2,026,214 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 220,638 $ 229,483 $ 1,580,793 $ 2,030,914 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 (1) Maturity dates exclude three whole loans with amortized costs of $43.8 million and $27.9 million, in maturity default at June 30, 2022 and December 31, 2021, respectively. ( 2 ) At June 30, 2022, the amortized costs of the floating-rate CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $17.5 million, $106.7 million and $1.9 billion in 2022, 2023 and 2024 and thereafter, respectively. At December 31, 2021, the amortized costs of the floating-rate 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. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Activity in Allowance for Credit Losses | The following table shows the activity in the allowance for credit losses for the six months ended June 30, 2022 and year ended December 31, 2021 (in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 CRE Loans CRE Loans Allowance for credit losses: Allowance for credit losses at beginning of period $ 8,805 $ 34,310 Reversal of credit losses, net (1,278 ) (21,262 ) Charge offs (2,297 ) (4,243 ) Allowance for credit losses at end of period $ 5,230 $ 8,805 |
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 • Property performance has surpassed underwritten expectations. • Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high-quality tenant mix. 2 • Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. • Occupancy is stabilized, near stabilized or is on track with underwriting. 3 • Property performance lags behind underwritten expectations. • Occupancy is not stabilized and the property has some tenancy rollover. 4 • Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. • Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 • Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. • The property has a material vacancy rate and significant rollover of remaining tenants. • An updated appraisal is required upon designation and updated on an as-needed basis. 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. In order to calculate the historical mean loss ratio, the Company utilizes its full, 16-year underwriting history in the determination of historical losses, along with the market loss history from a selected population from an engaged third-party provider’s database that were similar to its loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amount s in the footnote s ): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At June 30, 2022: Whole loans, floating-rate $ — $ 1,757,379 $ 182,918 $ 115,692 $ 14,000 $ 2,069,989 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,757,379 $ 182,918 $ 120,392 $ 14,000 $ 2,074,689 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 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in the footnotes): 2022 2021 2020 2019 2018 Prior Total (1) At June 30, 2022: Whole loans, floating-rate: (2) Rating 2 $ 365,066 $ 1,206,132 $ 120,232 $ 46,463 $ 19,486 $ — $ 1,757,379 Rating 3 — 47,882 25,357 47,565 44,616 17,498 182,918 Rating 4 — — — 51,234 64,458 — 115,692 Rating 5 — — — 14,000 — — 14,000 Total whole loans, floating-rate 365,066 1,254,014 145,589 159,262 128,560 17,498 2,069,989 Mezzanine loan (rating 4) — — — — 4,700 — 4,700 Total $ 365,066 $ 1,254,014 $ 145,589 $ 159,262 $ 133,260 $ 17,498 $ 2,074,689 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 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively (2) Acquired CRE whole loans are grouped within each loan’s year of origination. |
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 June 30, 2022: Whole loans, floating-rate $ 14,000 $ — $ 8,025 $ 22,025 $ 2,047,964 $ 2,069,989 $ — Mezzanine loan — — — — 4,700 4,700 — Total $ 14,000 $ — $ 8,025 $ 22,025 $ 2,052,664 $ 2,074,689 $ — 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 (1) During the three and six months ended June 30, 2022, the Company did not recognize interest income on one loan with a principal payment greater than 90 days past due at June 30, 2022. During the three and six months ended June 30, 2021, the Company recognized interest income of $572,000 and $1.2 million, respectively, on three loans with principal payments greater than 90 days past due at June 30, 2021. (2) Includes one whole loan, with an amortized costs of $21.8 million, in maturity default at June 30, 2022. Includes one whole loan, with an amortized cost of $8.0 million, in maturity default at December 31, 2021. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $7.1 million and $6.1 million at June 30, 2022 and December 31, 2021, respectively. |
INVESTMENTS IN REAL ESTATE AN_2
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Summary of Acquisition Date Values of Acquired Assets and Assumed Liabilities | The following table summarizes the acquisition date values of acquired assets and assumed liabilities during the six months ended June 30, 2022 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 16,327 Building 65,488 Building and tenant improvements 577 Personal property 4,402 Investment in real estate 86,794 Right of use assets 19,664 Cash and other assets 2,117 Intangible assets 9,748 Total 118,323 Liabilities assumed: Mortgage payable (18,089 ) Operating leases (43,260 ) Other liabilities (311 ) Subtotal (61,660 ) Fair value of net asset acquired 56,663 Non-controlling interest (5,036 ) Total fair value at acquisition of net assets acquired $ 51,627 |
Schedule of Investments in Real Estate and Related Intangible Assets | The following table summarizes the book value of the Company’s investments in real estate and related intangible assets (in thousands, except amounts in the footnotes): June 30, 2022 December 31, 2021 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) $ 113,502 $ (998 ) $ 112,504 $ 27,065 $ (191 ) $ 26,874 Right of use assets (2)(3) 19,664 (68 ) 19,596 — — — Intangible assets (4) 11,474 (2,091 ) 9,383 1,726 (806 ) 920 Subtotal 144,640 (3,157 ) 141,483 28,791 (997 ) 27,794 Investments in real estate from lending activities: Investment in real estate (5) 34,302 (2,450 ) 31,852 34,124 (1,689 ) 32,435 Property held for sale (6) 17,657 — 17,657 17,846 — 17,846 Right of use assets (3)(7) 5,603 (138 ) 5,465 5,603 (95 ) 5,508 Intangible assets (8) 3,337 (550 ) 2,787 3,337 (380 ) 2,957 Subtotal 60,899 (3,138 ) 57,761 60,910 (2,164 ) 58,746 Total 205,539 (6,295 ) 199,244 89,701 (3,161 ) 86,540 Liabilities assumed: Investments in real estate, equity: Mortgage payable (18,089 ) (52 ) (18,141 ) — — — Lease liabilities (3) (43,260 ) 131 (43,129 ) — — — Other liabilities (9) (247 ) 165 (82 ) (247 ) 78 (169 ) Subtotal (61,596 ) 244 (61,352 ) (247 ) 78 (169 ) Investments in real estate from lending activities: Lease liabilities (3) (3,113 ) 76 (3,037 ) (3,113 ) 53 (3,060 ) Total (64,709 ) 320 (64,389 ) (3,360 ) 131 (3,229 ) Total net assets ( 9) $ 140,830 $ 134,855 $ 86,341 $ 83,311 (1) Includes $38.7 million and $22.4 million of land, which is not depreciable, at June 30, 2022 and December 31, 2021, respectively. (2) Right of use assets include a right of use associated with an acquired ground lease of $42.7 million accounted for as an operating lease, an above-market lease intangible asset of $19.1 million and a customer list intangible of $491,000 at June 30, 2022. Amortization of the below-market and above-market lease intangible is booked to real estate expenses on the consolidated statements of operations. (3) Refer to Note 8 for additional information on the Company’s remaining operating leases. (4) Carrying value includes approximately $53,000 and $819,000 of an acquired in-place lease intangible asset and $50,000 and $101,000 of an acquired leasing commission intangible asset at June 30, 2022 and December 31, 2021, respectively. (5) Includes $134,000 and $129,000 of building renovation assets at carrying value at June 30, 2022 and December 31, 2021, respectively, made subsequent to the date of acquisition. (6) Includes a property acquired in October 2021 that is being marketed for sale. (7) Right of use assets include a and December 31, 2021, respectively. (8) Carrying value includes franchise agreement intangible ass ets of $2.6 million and $2.6 million and a customer list intangible asset of $228,000 and $311,000 at June 30, 2022 and December 31, 2021, respectively. (9) Excludes items of working capital, either acquired or assumed. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Summary of Operating Leases | The following table summarizes the Company’s operating leases (in thousands): June 30, 2022 December 31, 2021 Operating Leases: Right of use assets $ 419 $ 443 Lease liabilities $ (454 ) $ (477 ) Weighted average remaining lease term: 6.1 years 6.6 years Weighted average discount rate: 10.65 % 10.65 % |
Summary of Operating Lease Costs and Cash Payments | The following table summarizes the Company’s operating lease costs and cash payments for the periods presented (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Lease Cost: Operating lease cost $ 24 $ 25 $ 48 $ 25 Other Information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 24 $ — $ 47 $ — |
Summary of Operating Leases by Maturity Date Based on Undiscounted Cash Flows | 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 (217 ) Total $ 454 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 the footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At June 30, 2022: ACR 2021-FL1 Senior Notes $ 675,223 $ 4,618 $ 670,605 3.01 % 14.0 years $ 802,643 ACR 2021-FL2 Senior Notes 567,000 5,648 561,352 3.32 % 14.6 years 700,000 Senior secured financing facility 19,875 3,127 16,748 5.75 % 5.1 years 176,545 CRE - term warehouse financing facilities (1) 331,810 3,408 328,402 3.62 % 2.3 years 434,671 Mortgage payable 18,710 569 18,141 5.00 % 2.8 years 25,400 4.50% Convertible Senior Notes 48,175 179 47,996 4.50 % 46 days — 5.75% Senior Unsecured Notes (2) 150,000 2,827 147,173 5.75 % 4.1 years — Unsecured Junior Subordinated Debentures 51,548 — 51,548 5.09 % 14.2 years — Total $ 1,862,341 $ 20,376 $ 1,841,965 3.58 % 10.7 years $ 2,139,259 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 (3) 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 (1) 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 (2) 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 ( 1 ) Principal outstanding includes accrued interest payable of $409,000 and $58,000 at June 30, 2022 and December 31, 2021, respectively. ( 2 ) Includes deferred debt issuance costs of $32,000 and $306,000 at June 30, 2022 and December 31, 2021, respectively, associated with the 12.00% senior unsecured notes due 2027 (“12.00% Senior Unsecured Notes”) that had no outstanding balance at June 30, 2022 and December 31, 2021, respectively. ( 3 ) Value of collateral excludes interest income of $730,000 and exit fees of $228,000 received as of December 31, 2021. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company’s consolidated securitizations at June 30, 2022 (in thousands, except amount in footnotes): Closing Date Maturity Date Permitted Funded Companion Participation Acquisition Period End (1) Reinvestment Period End (2) Total Note Paydowns Received from Closing Date through June 30, 2022 ACR 2021-FL1 May 2021 June 2036 N/A May 2023 $ — ACR 2021-FL2 December 2021 January 2037 N/A December 2023 $ — (1) The permitted funded companion participation acquisition 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 before the end of the period may be used to acquire CRE loans for reinvestment into the securitization. |
Schedule of convertible senior notes | The following table summarizes the 4.50% Convertible Senior Notes at June 30, 2022 (dollars in thousands, except the conversion rate, conversion price and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3) Conversion Price Maturity Date 4.50% Convertible Senior Notes $ 48,175 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 three and six months ended June 30, 2022 and 2021, 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”). |
Senior secured warehouse financing facilities and repurchase agreements | The following table sets forth certain information with respect to the Company’s senior secured financing, term warehouse financing facilities and mortgage payable (dollars in thousands, except amounts in footnotes): June 30, 2022 December 31, 2021 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) $ 16,748 $ 176,545 7 5.75 % $ (3,432 ) $ 170,791 9 5.75 % CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 207,784 274,798 11 3.54 % 18,875 37,167 3 2.85 % Morgan Stanley Mortgage Capital Holdings LLC (4) 120,618 159,873 9 3.75 % 47,896 64,860 3 2.03 % Mortgage Payable Readycap Commercial, LLC (5) 18,141 25,400 1 5.00 % — — — — Total $ 363,291 $ 636,616 $ 63,339 $ 272,818 (1) Includes $3.1 million and $3.4 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively. (2) Outstanding borrowings include accrued interest payable. ( 3 ) Includes $1.5 million and $1.8 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively, in addition to $142,000 and $356,000 of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively, from other term warehouse financing facilities with no balance. ( 4 ) Includes $1.8 million and $2.2 million of deferred debt issuance costs at June 30, 2022 and December 31, 2021, respectively. (5) Includes $569,000 of deferred debt issuance costs at June 30, 2022. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the warehouse financing facilities and mortgage payable (dollars in thousands): Amount at Risk Weighted Average Remaining Maturity Weighted Average Interest Rate At June 30, 2022: Senior Secured Financing Facility (1) Massachusetts Mutual Life Insurance Company $ 157,214 5.1 years 5.75 % CRE - Term Warehouse Financing Facilities (1) JPMorgan Chase Bank, N.A. $ 66,315 2.3 years 3.54 % Morgan Stanley Mortgage Capital Holdings LLC $ 38,020 2.4 years 3.75 % Mortgage Payable (2) Readycap Commercial, LLC $ 6,635 2.8 years 5.00 % (1) Equal to the total of the estimated fair value of real estate owned property or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. (2) Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the mortgage payable agreement liability 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): Total 2022 2023 2024 2025 2026 and Thereafter At June 30, 2022: CRE securitizations $ 1,242,223 $ — $ — $ — $ — $ 1,242,223 Senior secured financing facility 19,875 — — — — 19,875 CRE - term warehouse financing facilities (1) 331,810 — — 331,810 — — Mortgage payable 18,710 — — — 18,710 — 4.50% Convertible Senior Notes 48,175 48,175 — — — — 5.75% Senior Unsecured Notes 150,000 — — — — 150,000 Unsecured junior subordinated debentures 51,548 — — — — 51,548 Total $ 1,862,341 $ 48,175 $ — $ 331,810 $ 18,710 $ 1,463,646 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: Manager Directors Total Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2022 299,999 33,330 333,329 $ 17.39 Issued 299,999 33,334 333,333 11.85 Vested (74,999 ) (8,330 ) (83,329 ) 17.39 Forfeited — — — — Unvested shares at June 30, 2022 524,999 58,334 583,333 $ 14.22 |
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 2023 166,658 2024 166,658 2025 166,671 2026 83,346 Total 583,333 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings (losses) per common share | The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented (dollars in thousands, except per share amounts): For the Three Months Ended For the Six Months Ended June 30, June 30, 2022 2021 2022 2021 Net income $ 5,522 $ 13,639 $ 7,606 $ 26,695 Net income allocated to preferred shares (4,856 ) (3,568 ) (9,711 ) (6,156 ) Net loss allocable to non-controlling interest, net of taxes 24 — 24 — Net income (loss) allocable to common shares $ 690 $ 10,071 $ (2,081 ) $ 20,539 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 8,421,800 9,245,279 8,525,481 9,485,593 Weighted average number of warrants outstanding (1) 466,661 466,661 466,661 466,661 Total weighted average number of common shares outstanding - basic 8,888,461 9,711,940 8,992,142 9,952,254 Effect of dilutive securities - unvested restricted stock 25,711 8,669 — 8,957 Weighted average number of common shares outstanding - diluted 8,914,172 9,720,609 8,992,142 9,961,211 Net income (loss) per common share - basic $ 0.08 $ 1.04 $ (0.23 ) $ 2.06 Net income (loss) per common share - diluted $ 0.08 $ 1.04 $ (0.23 ) $ 2.06 (1) See Note 11 for further details regarding the warrants. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Distributions [Abstract] | |
Distributions Declared | The following tables present distributions declared (on a per share basis) for the six months ended June 30, 2022 and the year ended December 31, 2021: Series C Preferred Stock Series D Preferred Stock Date Paid Total Distributions Paid Distributions Per Share Date Paid Total Distributions Paid Distributions Per Share (in thousands) (in thousands) 2022 June 30 August 1 $ 2,588 $ 0.5390625 August 1 $ 2,268 $ 0.4921875 March 31 May 2 $ 2,588 $ 0.5390625 May 2 $ 2,268 $ 0.4921875 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 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive loss | The following table presents the changes in net unrealized loss on derivatives, the sole component of accumulated other comprehensive loss, for the six months ended June 30, 2022 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Loss on Derivatives Balance at January 1, 2022 $ (8,127 ) Amounts reclassified from accumulated other comprehensive loss (1) 917 Balance at June 30, 2022 $ (7,210 ) (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) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value financial and non-financial assets not reported at fair value | The fair values of the Company’s remaining financial and non-financial assets that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): 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 June 30, 2022: Assets: CRE whole loans $ 2,064,986 $ 2,084,242 $ — $ — $ 2,084,242 CRE mezzanine loan $ 4,473 $ 4,700 $ — $ — $ 4,700 Loan receivable - related party $ 11,450 $ 9,876 $ — $ — $ 9,876 Liabilities: . Senior notes in CRE securitizations $ 1,231,957 $ 1,190,771 $ — $ — $ 1,190,771 Senior secured financing facility $ 16,748 $ 19,875 $ — $ — $ 19,875 Warehouse financing facilities $ 328,402 $ 331,810 $ — $ — $ 331,810 Mortgage payable $ 18,141 $ 18,710 $ — $ — $ 18,710 4.50% Convertible Senior Notes $ 47,996 $ 48,108 $ — $ — $ 48,108 5.75% Senior Unsecured Notes (1) $ 147,173 $ 140,190 $ — $ — $ 140,190 Junior subordinated notes $ 51,548 $ 35,702 $ — $ — $ 35,702 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 facility $ 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 (1) Carrying value at June 30, 2022 and December 31, 2021 includes deferred debt issuance costs of $32,000 and $307,000, respectively, associated with the 12.00% Senior Unsecured Notes, that had no outstanding balance at both June 30, 2022 and December 31, 2021. |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 for the six months ended June 30, 2022 and 2021 (in thousands): Derivatives Six Months Ended June 30, 2022 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (917 ) Derivatives Six Months Ended June 30, 2021 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (918 ) (1) Negative values indicate a decrease to the associated consolidated statement of operations line items. |
OFFSETTING OF FINANCIAL LIABI_2
OFFSETTING OF FINANCIAL LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Offsetting [Abstract] | |
Offsetting financial liabilities | The following table presents a summary of the Company’s offsetting of financial liabilities (in thousands, except amounts in footnotes): (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets (i) Gross Amounts of Recognized Liabilities (ii) Gross Amounts Offset on the Consolidated Balance Sheets (iii) = (i) - (ii) Net Amounts of Liabilities Included on the Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At June 30, 2022: Warehouse financing facilities (2) $ 328,402 $ — $ 328,402 $ 328,402 $ — $ — At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities and repurchase agreements. ( 2 ) The combined fair values of loans pledged against the Company’s various term warehouse financing facilities and repurchase agreements was $434.7 million and $102.0 million at June 30, 2022 and December 31, 2021, respectively. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Feb. 16, 2021 $ / shares shares | Jun. 30, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | May 31, 2021 shares | Apr. 30, 2021 shares |
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 | 41,666,666 | 41,666,666 | 41,666,666 | 125,000,000 | |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Cash balance in excess of federal deposit Insurance limit, amount | $ 31.2 | $ 33.3 |
Operating loss carryforwards, valuation allowance, tax expense impact | $ 21.6 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 34,870 | $ 35,500 | $ 90,805 | |
Restricted cash | 25,367 | 248,431 | 15,003 | |
Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows | $ 60,237 | $ 283,931 | $ 105,808 | $ 67,741 |
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) | 6 Months Ended |
Jun. 30, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 35 years |
Building improvements | 8 years |
Site improvements | 10 years |
Tenant improvements | 180 days |
FF&E | 3 years |
Right of use assets | 7 years |
Intangible assets | 90 days |
Lease liabilities | 7 years |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 40 years |
Building improvements | 35 years |
Tenant improvements | 3 years |
FF&E | 12 years |
Right of use assets | 94 years |
Intangible assets | 18 years |
Lease liabilities | 94 years |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 6 Months Ended | ||
Jun. 30, 2022 USD ($) entity | Jun. 30, 2021 USD ($) | Dec. 31, 2021 entity | |
Variable Interest Entity [Line Items] | |||
Number of consolidated VIEs | entity | 5 | 7 | |
Financial support, amount | $ | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Cha
VARIABLE INTEREST ENTITIES (Charles Street-ACRES FSU Student Venture, LLC) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated entities | $ 1,548 | $ 1,548 | |
VIE, Not Primary Beneficiary | Charles Street-ACRES FSU Student Venture, LLC | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 72.10% | ||
Investments in unconsolidated entities | $ 13,000 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
ASSETS: | |||
Restricted cash | $ 25,367 | $ 248,431 | $ 15,003 |
Accrued interest receivable | 7,162 | 6,112 | |
CRE loans | 2,069,459 | 1,873,746 | |
Other assets | 6,907 | 5,482 | |
Total assets | 2,356,426 | 2,284,275 | |
LIABILITIES | |||
Accounts payable and other liabilities | 10,838 | 7,025 | |
Accrued interest payable | 5,752 | 5,937 | |
Borrowings | 1,841,965 | 1,814,424 | |
Total liabilities | 1,909,100 | 1,836,080 | |
VIE, Primary Beneficiary | |||
ASSETS: | |||
Restricted cash | 24,888 | 248,371 | |
Accrued interest receivable | 4,893 | 3,826 | |
Other assets | 117 | 36 | |
Total assets | 1,497,901 | 1,868,614 | |
LIABILITIES | |||
Accounts payable and other liabilities | 87 | 315 | |
Accrued interest payable | 1,415 | 997 | |
Borrowings | 1,231,957 | 1,466,499 | |
Total liabilities | 1,233,459 | 1,467,811 | |
Pledged as Collateral | VIE, Primary Beneficiary | |||
ASSETS: | |||
CRE loans | 1,468,003 | $ 1,601,482 | |
CRE Securitizations | VIE, Primary Beneficiary | |||
ASSETS: | |||
Restricted cash | 24,571 | ||
Accrued interest receivable | 4,893 | ||
Other assets | 61 | ||
Total assets | 1,497,528 | ||
LIABILITIES | |||
Accounts payable and other liabilities | 87 | ||
Accrued interest payable | 1,415 | ||
Borrowings | 1,231,957 | ||
Total liabilities | 1,233,459 | ||
CRE Securitizations | Pledged as Collateral | VIE, Primary Beneficiary | |||
ASSETS: | |||
CRE loans | 1,468,003 | ||
Other | VIE, Primary Beneficiary | |||
ASSETS: | |||
Restricted cash | 317 | ||
Accrued interest receivable | 0 | ||
Other assets | 56 | ||
Total assets | 373 | ||
LIABILITIES | |||
Accounts payable and other liabilities | 0 | ||
Accrued interest payable | 0 | ||
Borrowings | 0 | ||
Total liabilities | 0 | ||
Other | Pledged as Collateral | VIE, Primary Beneficiary | |||
ASSETS: | |||
CRE loans | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 |
Borrowings | $ 1,841,965,000 | $ 1,814,424,000 |
VIE, Not Primary Beneficiary | Investment in RCT I and II | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100% | |
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% | |
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% | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Total assets | $ 2,356,426 | $ 2,284,275 |
LIABILITIES | ||
Total liabilities | 1,909,100 | $ 1,836,080 |
VIE, Not Primary Beneficiary | Interest Receivable | ||
ASSETS: | ||
Maximum Exposure to Loss | 0 | |
VIE, Not Primary Beneficiary | Investments in Unconsolidated Entities | ||
ASSETS: | ||
Maximum Exposure to Loss | 1,548 | |
Unsecured Junior Subordinated Debentures | VIE, Not Primary Beneficiary | ||
ASSETS: | ||
Accrued interest receivable | 7 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,555 | |
LIABILITIES | ||
Accrued interest payable | 229 | |
Borrowings | 51,548 | |
Total liabilities | 51,777 | |
Net (liability) asset | $ (50,222) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental cash flows: | ||
Interest expense paid in cash | $ 24,736 | $ 20,132 |
Income taxes paid in cash | 180 | |
Non-cash operating activities include the following: | ||
Receipt of right of use assets | (479) | |
Execution of operating leases | 479 | |
Preferred Stock | ||
Non-cash financing activities include the following: | ||
Distributions accrued but not paid | $ 3,262 | $ 2,706 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) | Jun. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2020 USD ($) |
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 2,074,689,000 | $ 1,882,551,000 | |
Allowance for Credit Losses | (5,230,000) | (8,805,000) | |
Commercial Real Estate Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 2,088,942,000 | 1,896,495,000 | |
Unamortized (Discount) Premium, net | (14,253,000) | (13,944,000) | |
Amortized Cost, Loans held for investment | 2,074,689,000 | 1,882,551,000 | |
Allowance for Credit Losses | (5,230,000) | (8,805,000) | $ (34,310,000) |
Carrying Value, Loans held for investment | 2,069,459,000 | 1,873,746,000 | |
Loan origination fees | 14,100,000 | 13,600,000 | |
Deferred amendment fees | 132,000 | 307,000 | |
Unamortized loan acquisition costs | 7,300 | ||
Commercial Real Estate Loans | Whole Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 2,084,242,000 | 1,891,795,000 | |
Unamortized (Discount) Premium, net | (14,253,000) | (13,944,000) | |
Amortized Cost, Loans held for investment | 2,069,989,000 | 1,877,851,000 | |
Allowance for Credit Losses | (5,003,000) | (8,550,000) | |
Carrying Value, Loans held for investment | $ 2,064,986,000 | $ 1,869,301,000 | |
Quantity | Loan | 88 | 93 | |
Loans held for investment, unfunded loan commitments | $ 167,900,000 | $ 157,600,000 | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | |||
Receivables With Imputed Interest [Line Items] | |||
Loan receivable, floor interest rate | 0.62% | 0.75% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Minimum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 2.75% | 2.70% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Maximum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 8.50% | 8.50% | |
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 | (227,000) | (255,000) | |
Carrying Value, Loans held for investment | $ 4,473,000 | $ 4,445,000 | |
Quantity | Loan | 1 | 1 | |
Contractual Interest Rates | 10% | 10% | |
Commercial Real Estate Loans | Whole Loans in Default | |||
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 43,800,000 | $ 27,900,000 | |
Quantity | Loan | 3 | 3 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Jun. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan |
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 2,074,689 | $ 1,882,551 |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | 2,074,689 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 43,800 | $ 27,900 |
Number of loans | Loan | 3 | 3 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | $ 220,638 | $ 377,024 |
2023 | 229,483 | 230,872 |
2024 and Thereafter | 1,580,793 | 1,246,713 |
Amortized Cost, Loans held for investment | 2,030,914 | 1,854,609 |
Commercial Real Estate Debt Investments | Whole Loans | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | 220,638 | 377,024 |
2023 | 229,483 | 230,872 |
2024 and Thereafter | 1,576,093 | 1,242,013 |
Amortized Cost, Loans held for investment | 2,026,214 | 1,849,909 |
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 | Whole Loans | Whole Loan in Extension Option | ||
Receivables With Imputed Interest [Line Items] | ||
2022 | 17,500 | 52,000 |
2023 | 106,700 | 127,600 |
2024 and Thereafter | $ 1,900,000 | $ 1,700,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Principal paydowns receivable | $ 0 | $ 14,899 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 25.60% | 18.40% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 16.50% | |
Commercial Real Estate Loans | Southeast Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 24.10% | 28.40% |
Commercial Real Estate Loans | Mid-Atlantic regions | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 15.20% |
FINANCING RECEIVABLES (Activity
FINANCING RECEIVABLES (Activity in Allowance for Credit Losses) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for credit losses: | |||||
Allowance for credit losses at beginning of period | $ 8,805,000 | ||||
Reversal of credit losses, net | (1,278,000) | $ (15,984,000) | |||
Allowance for credit losses at end of period | $ 5,230,000 | 5,230,000 | $ 8,805,000 | ||
Commercial Real Estate Loans | |||||
Allowance for credit losses: | |||||
Allowance for credit losses at beginning of period | 8,805,000 | 34,310,000 | 34,310,000 | ||
Reversal of credit losses, net | (524,000) | $ (10,300,000) | (1,278,000) | $ (16,000,000) | (21,262,000) |
Charge offs | (2,297,000) | (4,243,000) | |||
Allowance for credit losses at end of period | $ 5,230,000 | $ 5,230,000 | $ 8,805,000 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 USD ($) Loan | Jun. 30, 2022 USD ($) Loan Contract Borrower | Jun. 30, 2021 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Reversal of credit losses, net | $ (1,278,000) | $ (15,984,000) | |||
Number of defaulted additional loans | Loan | 2 | ||||
Repayment of additional loans | 2022-01 | ||||
Recorded investment | $ 43,800,000 | 43,800,000 | $ 30,400,000 | ||
Troubled-debt restructurings | 0 | $ 0 | $ 0 | $ 0 | |
Extension Agreements | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
No of extension agreements | Contract | 6 | ||||
Weighted average extension period of contracts | 2 months | ||||
Principal Forgiveness | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of borrowers | Borrower | 1 | ||||
Hotel Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current expected credit losses (CECL) allowance | 0 | $ 0 | |||
Retail Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Current expected credit losses (CECL) allowance | $ 0 | $ 0 | |||
Whole Loans In Maturity Default | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of bank loans | Loan | 1 | 1 | 1 | 1 | |
Recorded investment | $ 21,800,000 | $ 21,800,000 | 8,000,000 | ||
Northeast Region | Hotel Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Principal balance individually evaluated | 14,000,000 | $ 14,000,000 | |||
Number of loans individually evaluated | Loan | 1 | ||||
Northeast Region | Retail Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Principal balance individually evaluated | 8,000,000 | $ 8,000,000 | |||
Number of loans individually evaluated | Loan | 1 | ||||
Pacific Region | Retail Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Charge offs | 2,300,000 | ||||
Southwest Region | Retail Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Principal balance individually evaluated | 21,800,000 | $ 21,800,000 | |||
Commercial Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Reversal of credit losses, net | (524,000) | $ (10,300,000) | (1,278,000) | $ (16,000,000) | (21,262,000) |
Current expected credit losses (CECL) allowance | 2,300,000 | ||||
Charge offs | 2,297,000 | $ 4,243,000 | |||
Number of bank loans | Loan | 3 | ||||
Recorded investment | $ 43,800,000 | $ 43,800,000 | $ 27,900,000 | ||
Commercial Real Estate Loans | Whole Loans In Maturity Default | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of bank loans | Loan | 2 | ||||
Commercial Real Estate Loans | Principal Receivable | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Proceeds from the payoffs of loans receivable | $ 17,600,000 | ||||
Commercial Real Estate Loans | Whole Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of bank loans | Loan | 3 | 3 | 3 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 2,074,689 | $ 1,882,551 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 2,074,689 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 2,069,989 | 1,877,851 |
Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Rating 1 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Whole Loans | ||
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 2 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,757,379 | 1,456,330 |
Rating 2 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,757,379 | 1,456,330 |
Rating 2 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 3 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 182,918 | 273,078 |
Rating 3 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 182,918 | 273,078 |
Rating 3 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 4 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 120,392 | 128,462 |
Rating 4 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 115,692 | 123,762 |
Rating 4 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Rating 5 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 14,000 | 24,681 |
Rating 5 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 14,000 | 24,681 |
Rating 5 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit_2
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Commercial Real Estate Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded investment excluded accrued interest receivable | $ 7.1 | $ 6.1 | $ 6.1 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | $ 365,066 | $ 1,264,591 |
Loans and receivables by origination year, 2021 | 1,254,014 | 175,117 |
Loans and receivables by origination year, 2020 | 145,589 | 242,646 |
Loans and receivables by origination year, 2019 | 159,262 | 171,181 |
Loans and receivables by origination year, 2018 | 133,260 | 0 |
Loans and receivables by origination year, Prior | 17,498 | 29,016 |
Loans and receivables by origination year, Total | 2,074,689 | 1,882,551 |
Whole Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 365,066 | 1,264,591 |
Loans and receivables by origination year, 2021 | 1,254,014 | 175,117 |
Loans and receivables by origination year, 2020 | 145,589 | 242,646 |
Loans and receivables by origination year, 2019 | 159,262 | 166,481 |
Loans and receivables by origination year, 2018 | 128,560 | 0 |
Loans and receivables by origination year, Prior | 17,498 | 29,016 |
Loans and receivables by origination year, Total | 2,069,989 | 1,877,851 |
Whole Loans | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 365,066 | 1,230,810 |
Loans and receivables by origination year, 2021 | 1,206,132 | 150,513 |
Loans and receivables by origination year, 2020 | 120,232 | 55,510 |
Loans and receivables by origination year, 2019 | 46,463 | 19,497 |
Loans and receivables by origination year, 2018 | 19,486 | 0 |
Loans and receivables by origination year, Prior | 0 | 0 |
Loans and receivables by origination year, Total | 1,757,379 | 1,456,330 |
Whole Loans | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 33,781 |
Loans and receivables by origination year, 2021 | 47,882 | 24,604 |
Loans and receivables by origination year, 2020 | 25,357 | 136,305 |
Loans and receivables by origination year, 2019 | 47,565 | 60,888 |
Loans and receivables by origination year, 2018 | 44,616 | 0 |
Loans and receivables by origination year, Prior | 17,498 | 17,500 |
Loans and receivables by origination year, Total | 182,918 | 273,078 |
Whole Loans | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 0 |
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 28,446 |
Loans and receivables by origination year, 2019 | 51,234 | 86,096 |
Loans and receivables by origination year, 2018 | 64,458 | 0 |
Loans and receivables by origination year, Prior | 0 | 9,220 |
Loans and receivables by origination year, Total | 115,692 | 123,762 |
Whole Loans | Rating 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 0 |
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 22,385 |
Loans and receivables by origination year, 2019 | 14,000 | 0 |
Loans and receivables by origination year, 2018 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 2,296 |
Loans and receivables by origination year, Total | 14,000 | 24,681 |
Mezzanine loan | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 0 |
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, Prior | 0 | 0 |
Loans and receivables by origination year, Total | $ 4,700 | $ 4,700 |
FINANCING RECEIVABLES (Credit_4
FINANCING RECEIVABLES (Credit Risk Profiles of CRE Loans by Origination Year at Amortized Costs) (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Commercial Real Estate Loans | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Recorded investment excluded accrued interest receivable | $ 7.1 | $ 6.1 | $ 6.1 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 2,074,689 | $ 1,882,551 |
CRE loans | 2,074,689 | 1,882,551 |
CRE loans | 0 | 19,916 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 14,000 | 0 |
CRE loans | 14,000 | 0 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
CRE loans | 0 | 0 |
Greater than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 8,025 | 19,916 |
CRE loans | 8,025 | 19,916 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 22,025 | 19,916 |
CRE loans | 22,025 | 19,916 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,052,664 | 1,862,635 |
CRE loans | 2,052,664 | 1,862,635 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,074,689 | 1,882,551 |
CRE loans | 2,074,689 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,069,989 | 1,877,851 |
CRE loans | 2,069,989 | 1,877,851 |
CRE loans | 0 | 19,916 |
Commercial Real Estate Loans | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 4,700 | 4,700 |
CRE loans | 4,700 | 4,700 |
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 14,000 | 0 |
CRE loans | 14,000 | 0 |
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
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 |
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 8,025 | 19,916 |
CRE loans | 8,025 | 19,916 |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Total Past Due | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 22,025 | 19,916 |
CRE loans | 22,025 | 19,916 |
Commercial Real Estate Loans | Total Past Due | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Current | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,047,964 | 1,857,935 |
CRE loans | 2,047,964 | 1,857,935 |
Commercial Real Estate Loans | Current | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 4,700 | 4,700 |
CRE loans | $ 4,700 | $ 4,700 |
FINANCING RECEIVABLES (Loan P_2
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Parenthetical) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 USD ($) Loan | Jun. 30, 2022 USD ($) Loan | Jun. 30, 2021 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Interest income | $ 27,019,000 | $ 25,793,000 | $ 49,695,000 | $ 50,542,000 | |
Recorded investment | $ 43,800,000 | $ 43,800,000 | $ 30,400,000 | ||
Whole Loans In Maturity Default | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of bank loans | Loan | 1 | 1 | 1 | 1 | |
Recorded investment | $ 21,800,000 | $ 21,800,000 | $ 8,000,000 | ||
Whole Loans In Maturity Default | Greater than 90 Days | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of bank loans | Loan | 3 | 3 | 1 | ||
Commercial Real Estate Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of bank loans | Loan | 3 | ||||
Recorded investment | 43,800,000 | 43,800,000 | $ 27,900,000 | ||
Recorded investment excluded accrued interest receivable | 7,100,000 | $ 6,100,000 | 7,100,000 | $ 6,100,000 | $ 6,100,000 |
Commercial Real Estate Loans | Whole Loans In Maturity Default | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Interest income | $ 0 | $ 572,000 | $ 0 | $ 1,200,000 | |
Number of bank loans | Loan | 2 |
INVESTMENT IN REAL ESTATE AND O
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Summary of Acquisition Date Value of Acquired Assets and Liabilities) (Details) - Investments In Real Estate Equity $ in Thousands | Jun. 30, 2022 USD ($) |
Assets acquired: | |
Investment in real estate | $ 86,794 |
Right of use assets | 19,664 |
Cash and other assets | 2,117 |
Intangible assets | 9,748 |
Total | 118,323 |
Liabilities assumed: | |
Mortgage payable | (18,089) |
Operating leases | (43,260) |
Other liabilities | (311) |
Subtotal | (61,660) |
Fair value of net asset acquired | 56,663 |
Non-controlling interest | (5,036) |
Total fair value at acquisition of net assets acquired | 51,627 |
Land | |
Assets acquired: | |
Investment in real estate | 16,327 |
Building | |
Assets acquired: | |
Investment in real estate | 65,488 |
Building and Tenant Improvements | |
Assets acquired: | |
Investment in real estate | 577 |
Personal Property | |
Assets acquired: | |
Investment in real estate | $ 4,402 |
INVESTMENTS IN REAL ESTATE AN_3
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Investments in Real Estate and Related Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investment in Real Estate, Carrying Value | $ 144,356 | $ 59,308 |
Assets Acquired, Cost | 205,539 | 89,701 |
Assets Acquired, Accumulated Depreciation & Amortization | (6,295) | (3,161) |
Assets Acquired, Carrying Value | 199,244 | 86,540 |
Liabilities Assumed, Cost | (64,709) | (3,360) |
Liabilities Assumed, Accumulated Depreciation & Amortization | 320 | 131 |
Liabilities Assumed, Carrying Value | (64,389) | (3,229) |
Assets Acquired and Liabilities Assumed, Cost | 140,830 | 86,341 |
Asset Acquired and Liabilities Assumed, Carrying Value | 134,855 | 83,311 |
Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investment in Real Estate, Cost | 113,502 | 27,065 |
Investment in Real Estate Accumulated Depreciation & Amortization | (998) | (191) |
Investment in Real Estate, Carrying Value | 112,504 | 26,874 |
Right of use Assets, Cost | 19,664 | |
Right of use Assets Accumulated Depreciation & Amortization | (68) | |
Right of use Assets, Carrying Value | 19,596 | |
Intangible Assets, Cost | 11,474 | 1,726 |
Intangible Assets, Accumulated Depreciation & Amortization | (2,091) | (806) |
Intangible Assets, Carrying Value | 9,383 | 920 |
Assets Acquired, Cost | 144,640 | 28,791 |
Assets Acquired, Accumulated Depreciation & Amortization | (3,157) | (997) |
Assets Acquired, Carrying Value | 141,483 | 27,794 |
Mortgage payable, Cost | (18,089) | |
Mortgage payable, Accumulated Depreciation & Amortization | (52) | |
Mortgage payable, Carrying Value | (18,141) | |
Lease liabilities, Cost | (43,260) | |
Lease liabilities, Accumulated Depreciation & Amortization | 131 | |
Lease liabilities, Carrying Value | (43,129) | |
Other liabilities, Cost | (247) | (247) |
Other liabilities, Accumulated Depreciation & Amortization | 165 | 78 |
Other liabilities, Carrying Value | (82) | (169) |
Liabilities Assumed, Cost | (61,596) | (247) |
Liabilities Assumed, Accumulated Depreciation & Amortization | 244 | 78 |
Liabilities Assumed, Carrying Value | (61,352) | (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 | 34,302 | 34,124 |
Investment in Real Estate Accumulated Depreciation & Amortization | (2,450) | (1,689) |
Investment in Real Estate, Carrying Value | 31,852 | 32,435 |
Right of use Assets, Cost | 5,603 | 5,603 |
Right of use Assets Accumulated Depreciation & Amortization | (138) | (95) |
Right of use Assets, Carrying Value | 5,465 | 5,508 |
Intangible Assets, Cost | 3,337 | 3,337 |
Intangible Assets, Accumulated Depreciation & Amortization | (550) | (380) |
Intangible Assets, Carrying Value | 2,787 | 2,957 |
Property Held for Sale, Cost | 17,657 | 17,846 |
Property Held for Sale, Carrying Value | 17,657 | 17,846 |
Assets Acquired, Cost | 60,899 | 60,910 |
Assets Acquired, Accumulated Depreciation & Amortization | (3,138) | (2,164) |
Assets Acquired, Carrying Value | 57,761 | 58,746 |
Lease liabilities, Cost | (3,113) | (3,113) |
Lease liabilities, Accumulated Depreciation & Amortization | 76 | 53 |
Lease liabilities, Carrying Value | $ (3,037) | $ (3,060) |
INVESTMENTS IN REAL ESTATE AN_4
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Investments in Real Estate and Related Intangible Assets) (Parenthetical) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Above market lease intangible asset | $ 19,100,000 | |
Intangible assets | 9,383,000 | $ 920,000 |
Ground leases | 42,700,000 | |
Acquired in-place lease intangible asset | 53,000 | 819,000 |
Leasing commission intangible asset | 50,000 | 101,000 |
Investments In Real Estate Equity | Land | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investments in real estate | 38,700,000 | 22,400,000 |
Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 2,787,000 | 2,957,000 |
Ground leases | 3,000,000 | 3,100,000 |
Building renovation assets | 134,000 | 129,000 |
Below market lease intangible asset | 2,400,000 | 2,400,000 |
Customer Lists | Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 491,000 | |
Customer Lists | Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 228,000 | 311,000 |
Franchise Agreement | Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | $ 2,600,000 | $ 2,600,000 |
INVESTMENTS IN REAL ESTATE AN_5
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Property | Jun. 30, 2021 USD ($) | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||
Amortization expense on intangible assets | $ 437,000 | $ 94,000 | $ 1,400,000 | $ 188,000 |
Amortization expense on intangible assets during 2022 | 2,400,000 | 2,400,000 | ||
Amortization expense on intangible assets during 2023 | 2,000,000 | 2,000,000 | ||
Amortization expense on intangible assets during 2024 | 1,400,000 | 1,400,000 | ||
Amortization expense on intangible assets during 2025 | 1,300,000 | 1,300,000 | ||
Amortization expense on intangible assets during 2026 | 1,200,000 | $ 1,200,000 | ||
Investments In Real Estate Equity | ||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||
Number of properties acquired | Property | 2 | |||
Ground Lease | ||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||
Offsetting amortization and accretion on right of use assets and lease liabilities | 12,000 | $ 12,000 | $ 23,000 | $ 23,000 |
Ground Lease | Above-market Leases | ||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||
Offsetting amortization on right of use assets and amortization lease liability | $ 51,000 | $ 114,000 |
LEASES (Details)
LEASES (Details) - Office Space and Office Equipment | 6 Months Ended |
Jun. 30, 2022 | |
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) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right of use assets | $ 419 | $ 443 |
Lease liabilities | $ (454) | $ (477) |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
Weighted average remaining lease term: | 6 years 1 month 6 days | 6 years 7 months 6 days |
Weighted average discount rate: | 10.65% | 10.65% |
LEASES (Summary of Operating _2
LEASES (Summary of Operating Lease Costs and Cash Payments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease Cost: | ||||
Operating lease cost | $ 24 | $ 25 | $ 48 | $ 25 |
Other Information: | ||||
Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases | $ 24 | $ 47 |
LEASES (Summary of Operating _3
LEASES (Summary of Operating Leases by Maturity Date Based on Undiscounted Cash Flows) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2022 | $ 97 | |
2023 | 99 | |
2024 | 99 | |
2025 | 102 | |
2026 | 104 | |
Thereafter | 170 | |
Subtotal | 671 | |
Less: impact of discount | (217) | |
Total | $ 454 | $ 477 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Investments in unconsolidated entities | $ 1,548,000 | $ 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% | 100% | |||
Investments in unconsolidated entities | 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||
Dividends from investments in unconsolidated entities | $ 19,000 | $ 16,000 | $ 35,000 | $ 32,000 | |
VIE, Not Primary Beneficiary | Interest in RCT I | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of value of trusts owned | 3% | 3% | 3% | ||
VIE, Not Primary Beneficiary | Interest in RCT II | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Percentage of value of trusts owned | 3% | 3% | 3% |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 1,862,341 | $ 1,840,052 |
Unamortized Issuance Costs and Discounts | 20,376 | 25,628 |
Outstanding Borrowings | $ 1,841,965 | $ 1,814,424 |
Weighted Average Borrowing Rate | 3.58% | 2.44% |
Weighted Average Remaining Maturity | 10 years 8 months 12 days | 12 years 8 months 12 days |
Value of Collateral | $ 2,139,259 | $ 2,149,085 |
XAN 2020-RSO8 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 142,375 | |
Unamortized Issuance Costs and Discounts | 577 | |
Outstanding Borrowings | $ 141,798 | |
Weighted Average Borrowing Rate | 2.18% | |
Weighted Average Remaining Maturity | 13 years 2 months 12 days | |
Value of Collateral | $ 229,263 | |
XAN 2020-RSO9 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 94,814 | |
Unamortized Issuance Costs and Discounts | 489 | |
Outstanding Borrowings | $ 94,325 | |
Weighted Average Borrowing Rate | 4.25% | |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | |
Value of Collateral | $ 144,361 | |
ACR 2021-FL1 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 675,223 | 675,223 |
Unamortized Issuance Costs and Discounts | 4,618 | 5,410 |
Outstanding Borrowings | $ 670,605 | $ 669,813 |
Weighted Average Borrowing Rate | 3.01% | 1.60% |
Weighted Average Remaining Maturity | 14 years | 14 years 6 months |
Value of Collateral | $ 802,643 | $ 802,643 |
ACR 2021-FL2 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 567,000 | 567,000 |
Unamortized Issuance Costs and Discounts | 5,648 | 6,437 |
Outstanding Borrowings | $ 561,352 | $ 560,563 |
Weighted Average Borrowing Rate | 3.32% | 1.90% |
Weighted Average Remaining Maturity | 14 years 7 months 6 days | 15 years 1 month 6 days |
Value of Collateral | $ 700,000 | $ 700,000 |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 19,875 | |
Unamortized Issuance Costs and Discounts | 3,127 | 3,432 |
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ 16,748 | $ (3,432) |
Weighted Average Borrowing Rate | 5.75% | 5.75% |
Weighted Average Remaining Maturity | 5 years 1 month 6 days | 6 years 2 months 12 days |
Value of Collateral | $ 176,545 | $ 170,791 |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 331,810 | 71,078 |
Unamortized Issuance Costs and Discounts | 3,408 | 4,307 |
Outstanding Borrowings | $ 328,402 | $ 66,771 |
Weighted Average Borrowing Rate | 3.62% | 2.27% |
Weighted Average Remaining Maturity | 2 years 3 months 18 days | 2 years 9 months 18 days |
Value of Collateral | $ 434,671 | $ 102,027 |
Mortgage Payable | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 18,710 | |
Unamortized Issuance Costs and Discounts | 569 | |
Outstanding Borrowings | $ 18,141 | |
Weighted Average Borrowing Rate | 5% | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | |
Value of Collateral | $ 25,400 | |
4.50% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 48,175 | 88,014 |
Unamortized Issuance Costs and Discounts | 179 | 1,583 |
Outstanding Borrowings | $ 47,996 | $ 86,431 |
Weighted Average Borrowing Rate | 4.50% | 4.50% |
Weighted Average Remaining Maturity | 46 days | 227 days |
Value of Collateral | $ 0 | $ 0 |
5.75% Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 150,000 | 150,000 |
Unamortized Issuance Costs and Discounts | 2,827 | 3,393 |
Outstanding Borrowings | $ 147,173 | $ 146,607 |
Weighted Average Borrowing Rate | 5.75% | 5.75% |
Weighted Average Remaining Maturity | 4 years 1 month 6 days | 4 years 7 months 6 days |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 51,548 | $ 51,548 |
Unamortized Issuance Costs and Discounts | 0 | |
Outstanding Borrowings | $ 51,548 | $ 51,548 |
Weighted Average Borrowing Rate | 5.09% | 4.12% |
Weighted Average Remaining Maturity | 14 years 2 months 12 days | 14 years 8 months 12 days |
Value of Collateral | $ 0 |
BORROWINGS (Schedule of Debt)_2
BORROWINGS (Schedule of Debt) (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Accrued interest payable | $ 5,752,000 | $ 5,752,000 | $ 5,937,000 | |||
Unamortized issuance costs and discounts | 20,376,000 | 20,376,000 | 25,628,000 | |||
Outstanding Borrowings | 1,841,965,000 | 1,841,965,000 | $ 1,814,424,000 | |||
Interest income | $ 26,964,000 | $ 25,773,000 | $ 49,621,000 | $ 50,348,000 | ||
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 | $ 179,000 | $ 179,000 | $ 1,583,000 | |||
Outstanding Borrowings | $ 47,996,000 | $ 47,996,000 | $ 86,431,000 | |||
5.75% Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | |||
Unamortized issuance costs and discounts | $ 2,827,000 | $ 2,827,000 | $ 3,393,000 | |||
Outstanding Borrowings | 147,173,000 | 147,173,000 | 146,607,000 | |||
CRE - Term Warehouse Financing Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest payable | 409,000 | 409,000 | 58,000 | |||
Unamortized issuance costs and discounts | 3,408,000 | 3,408,000 | 4,307,000 | |||
Outstanding Borrowings | 328,402,000 | 328,402,000 | 66,771,000 | |||
12.00% Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized issuance costs and discounts | 32,000 | 32,000 | 306,000 | |||
Outstanding Borrowings | 0 | 0 | 0 | |||
ACR 2021-FL1 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized issuance costs and discounts | 4,618,000 | 4,618,000 | 5,410,000 | |||
Outstanding Borrowings | $ 670,605,000 | $ 670,605,000 | 669,813,000 | |||
Exit fees | 228,000 | |||||
Interest income | $ 730,000 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
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 Received from Closing Date through June 30, 2022 | $ 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 Received from Closing Date through June 30, 2022 | $ 0 |
BORROWINGS (XAN 2020-RSO8) (Det
BORROWINGS (XAN 2020-RSO8) (Details) $ in Millions | Mar. 31, 2020 USD ($) |
XAN 2020-RSO8 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 522.6 |
BORROWINGS (XAN 2020-RSO9) (Det
BORROWINGS (XAN 2020-RSO9) (Details) $ in Millions | Sep. 30, 2020 USD ($) |
XAN 2020-RSO9 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 297 |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||||
Face amount of debt issued | $ 363,291,000 | $ 363,291,000 | $ 63,339,000 | |||
Loss on extinguishment of debt | (460,000) | |||||
Interest expense | $ 15,745,000 | $ 18,702,000 | $ 30,652,000 | $ 32,426,000 | ||
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% | ||
Repurchase of convertible senior notes | $ 39,800,000 | $ 39,800,000 | $ 55,700,000 | |||
Charge to earnings | 574,000 | |||||
Loss on extinguishment of debt | 460,000 | |||||
Interest expense | $ 114,000 | |||||
Closing price of common stock | $ 8.19 | $ 8.19 |
BORROWINGS (Schedule of Convert
BORROWINGS (Schedule of Convertible Senior Notes) (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Jun. 30, 2021 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,862,341 | $ 1,840,052 | ||
4.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 48,175 | $ 88,014 | ||
Borrowing Rate | 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 ($) | Jun. 30, 2022 | Jun. 30, 2021 | Aug. 31, 2017 |
Debt Instrument [Line Items] | |||
Effective interest rate | 7.43% | 7.43% | |
Conversion principal amount | $ 1,000 |
BORROWINGS (12.00% Senior Unsec
BORROWINGS (12.00% Senior Unsecured Notes Due 2027) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Aug. 18, 2021 | Jul. 31, 2020 | Jan. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||
Face amount of debt issued | $ 363,291,000 | $ 363,291,000 | $ 63,339,000 | |||||
Loss on extinguishment of debt | (460,000) | |||||||
Interest expense | $ 15,745,000 | $ 18,702,000 | $ 30,652,000 | $ 32,426,000 | ||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | ||||||||
Debt Instrument [Line Items] | ||||||||
Date from which any additional notes under agreement and it expired | Jul. 31, 2022 | |||||||
12.00% Senior Unsecured Notes | Note and Warrant Purchase Agreement | Oaktree and MassMutual | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maximum borrowing capacity | $ 125,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 12% | |||||||
Debt instrument, pay-in-kind interest rate maximum percentage | 3.25% | |||||||
Face amount of debt issued | $ 50,000,000 | $ 75,000,000 | ||||||
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 | |||||||
Date from which any additional notes under agreement and it expired | Jul. 31, 2022 | |||||||
12.00% Senior Unsecured Notes | Note and Warrant Purchase Agreement | Oaktree | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt issued | $ 42,000,000 | |||||||
12.00% Senior Unsecured Notes | Note and Warrant Purchase Agreement | MassMutual | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt issued | $ 8,000,000 |
BORROWINGS (Senior Secured Fina
BORROWINGS (Senior Secured Financing Facility and Term Warehouse Financing Facilities and Mortgage Payable) (Details) $ in Thousands | Jun. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 363,291 | $ 63,339 |
Value of Collateral | $ 636,616 | $ 272,818 |
Weighted Average Interest Rate | 3.58% | 2.44% |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ 16,748 | $ (3,432) |
Value of Collateral | $ 176,545 | $ 170,791 |
Number of Positions as Collateral | Loan | 7 | 9 |
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 | $ 207,784 | $ 18,875 |
Value of Collateral | $ 274,798 | $ 37,167 |
Number of Positions as Collateral | Loan | 11 | 3 |
Weighted Average Interest Rate | 3.54% | 2.85% |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 120,618 | $ 47,896 |
Value of Collateral | $ 159,873 | $ 64,860 |
Number of Positions as Collateral | Loan | 9 | 3 |
Weighted Average Interest Rate | 3.75% | 2.03% |
Mortgage Payable | Readycap Commercial, LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 18,141 | |
Value of Collateral | $ 25,400 | |
Number of Positions as Collateral | Loan | 1 | |
Weighted Average Interest Rate | 5% |
BORROWINGS (Senior Secured Fi_2
BORROWINGS (Senior Secured Financing Facility and Term Warehouse Financing Facilities and Mortgage Payable (Parenthetical) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 20,376,000 | $ 25,628,000 |
Readycap Commercial, LLC | Mortgage Payable | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 569,000 | |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 3,100,000 | 3,400,000 |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,500,000 | 1,800,000 |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,800,000 | 2,200,000 |
Interest Receivable | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 142,000 | $ 356,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Warehouse Financing Facilities and Mortgage Payable) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 10 years 8 months 12 days | 12 years 8 months 12 days |
Weighted Average Interest Rate | 3.58% | 2.44% |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 5 years 1 month 6 days | 6 years 2 months 12 days |
Weighted Average Interest Rate | 5.75% | 5.75% |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 157,214 | |
Weighted Average Remaining Maturity | 5 years 1 month 6 days | |
Weighted Average Interest Rate | 5.75% | |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 2 years 3 months 18 days | 2 years 9 months 18 days |
Weighted Average Interest Rate | 3.62% | 2.27% |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 66,315 | |
Weighted Average Remaining Maturity | 2 years 3 months 18 days | |
Weighted Average Interest Rate | 3.54% | |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 38,020 | |
Weighted Average Remaining Maturity | 2 years 4 months 24 days | |
Weighted Average Interest Rate | 3.75% | |
Mortgage Payable | Readycap Commercial, LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,635 | |
Weighted Average Remaining Maturity | 2 years 9 months 18 days | |
Weighted Average Interest Rate | 5% |
BORROWINGS (Senior Secured Fi_3
BORROWINGS (Senior Secured Financing Facility) (Details) - Subsequent Event - MassMutual Loan Agreement - Senior Secured Financing Facility | 1 Months Ended |
Jul. 31, 2022 | |
Debt Instrument [Line Items] | |
Initial availability date | Jul. 31, 2022 |
Extended availability date | Aug. 31, 2022 |
Debt instrument, interest rate | 5.75% |
BORROWINGS (Mortgage Payable) (
BORROWINGS (Mortgage Payable) (Details) - MassMutual Loan Agreement - Mortgage Payable - Readycap Commercial, LLC $ in Millions | 1 Months Ended |
Apr. 30, 2022 USD ($) extension | |
Debt Instrument [Line Items] | |
Maximum facility amount | $ 20.4 |
Advanced in initial funding | $ 18.7 |
Maturity Date | 2025-04 |
Number of options to extend | extension | 2 |
Option to extend, term | 1 year |
One-Month SOFR Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.80% |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,862,341 |
2022 | 48,175 |
2023 | 0 |
2024 | 331,810 |
2025 | 18,710 |
2026 and Thereafter | 1,463,646 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 1,242,223 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 1,242,223 |
Senior Secured Financing Facility | |
Debt Instrument [Line Items] | |
Total | 19,875 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | 19,875 |
CRE - Term Warehouse Financing Facilities | |
Debt Instrument [Line Items] | |
Total | 331,810 |
2022 | 0 |
2023 | 0 |
2024 | 331,810 |
2025 | 0 |
2026 and Thereafter | 0 |
Mortgage Payable | |
Debt Instrument [Line Items] | |
Total | 18,710 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 18,710 |
2026 and Thereafter | 0 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 48,175 |
2022 | 48,175 |
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 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 and Thereafter | $ 51,548 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Jul. 06, 2022 | Nov. 30, 2021 | Nov. 30, 2020 | |
Class Of Stock [Line Items] | ||||||||
Proceeds from issuance of preferred stock, net | $ (70,000) | $ 110,765,000 | ||||||
Shares repurchased during period, value | $ 6,400,000 | $ 13,800,000 | ||||||
Shares repurchased during period, shares | 552,282 | 1,018,453 | ||||||
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 | $ 10,000,000 | |||||||
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 any additional notes under agreement and it expired | 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 | MassMutual | Subsequent Event | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrants to purchase additional shares of common stock | 74,666 | |||||||
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 | 4,600,000 | 4,607,857 | ||||
Preferred stock, coupon authorized | 7.875% | 7.875% | 7.875% | |||||
Offering price | $ 25 | $ 25 | ||||||
Proceeds from issuance of preferred stock, net | $ 110,400,000 | |||||||
Payment of underwriting discounts and other offering expenses | $ 4,600,000 | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||||
Preferred stock, shares outstanding (in shares) | 4,607,857 | 4,607,857 | ||||||
Series D Preferred Stock | Equity Distribution Agreement | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 0 | |||||||
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% | |||||||
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 ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 6,300,000 | $ 6,300,000 | ||||
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% | |||||
Common stock awards, percentage (at least) | 25% | |||||
Incentive management fee pursuant to the management agreement | 0 | $ 0 | ||||
Restricted Stock | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 991,000 | $ 171,000 | $ 1,700,000 | $ 190,000 | ||
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 | 1,100,000 | ||||
Share based compensation expiration period | 2029-06 | 2031-06 | ||||
Common shares granted | 1,700,817 | 1,700,817 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 333,329 |
Issued (shares) | 333,333 |
Vested (shares) | (83,329) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 583,333 |
Weighted-Average Grant-Date Fair Value, beginning of period (in shares) | $ / shares | $ 17.39 |
Weighted-Average Grant-Date Fair Value, Issued | $ / shares | 11.85 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 17.39 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value, end of period (in shares) | $ / shares | $ 14.22 |
Manager | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 299,999 |
Issued (shares) | 299,999 |
Vested (shares) | (74,999) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 524,999 |
Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 33,330 |
Issued (shares) | 33,334 |
Vested (shares) | (8,330) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 58,334 |
SHARE-BASED COMPENSATION (Com_2
SHARE-BASED COMPENSATION (Common Stock Expected to Vest) (Details) - Restricted Stock - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
2023 | 166,658 | |
2024 | 166,658 | |
2025 | 166,671 | |
2026 | 83,346 | |
Total | 583,333 | 333,329 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 5,522 | $ 2,084 | $ 13,639 | $ 13,056 | $ 7,606 | $ 26,695 |
Net income allocated to preferred shares | (4,856) | (3,568) | (9,711) | (6,156) | ||
Net loss allocable to non-controlling interest, net of taxes | 24 | 0 | 24 | 0 | ||
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ 690 | $ 10,071 | $ (2,081) | $ 20,539 | ||
Weighted average number of common shares outstanding: | ||||||
Weighted average number of common shares outstanding - basic | 8,421,800 | 9,245,279 | 8,525,481 | 9,485,593 | ||
Weighted average number of warrants outstanding | 466,661 | 466,661 | 466,661 | 466,661 | ||
Total weighted average number of common shares outstanding - basic | 8,888,461 | 9,711,940 | 8,992,142 | 9,952,254 | ||
Effect of dilutive securities - unvested restricted stock | 25,711 | 8,669 | 0 | 8,957 | ||
Weighted average number of common shares outstanding - diluted | 8,914,172 | 9,720,609 | 8,992,142 | 9,961,211 | ||
Net income (loss) per common share - basic | $ 0.08 | $ 1.04 | $ (0.23) | $ 2.06 | ||
Net income (loss) per common share - diluted | $ 0.08 | $ 1.04 | $ (0.23) | $ 2.06 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
Class Of Stock [Line Items] | |||||||
REIT required taxable income distribution, percentage (at least) | 90% | ||||||
REIT taxable income distribution required for exempt federal income taxes, percentage | 100% | ||||||
Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Dividend per share (in dollars per share) | $ 0 | $ 0 | |||||
Series C Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Dividend per share (in dollars per share) | 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | 0.5390625 | $ 0.5390625 | |
Series D Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Dividend per share (in dollars per share) | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.3773440 |
DISTRIBUTIONS (Distributions De
DISTRIBUTIONS (Distributions Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Series C Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Date Paid | Aug. 02, 2022 | May 02, 2022 | Jan. 31, 2022 | Nov. 01, 2021 | Jul. 30, 2021 | Apr. 30, 2021 |
Total Distributions Paid | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 |
Distributions Per Share | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 |
Series D Preferred Stock | ||||||
Class Of Stock [Line Items] | ||||||
Date Paid | Aug. 02, 2022 | May 02, 2022 | Jan. 31, 2022 | Nov. 01, 2021 | Jul. 30, 2021 | |
Total Distributions Paid | $ 2,268 | $ 2,268 | $ 2,268 | $ 2,264 | $ 1,736 | |
Distributions Per Share | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.3773440 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | $ 448,195 |
Ending balance | 442,314 |
Net Unrealized Loss on Derivatives | |
Accumulated Other Comprehensive Loss [Roll Forward] | |
Beginning balance | (8,127) |
Amounts reclassified from accumulated other comprehensive loss | 917 |
Ending balance | $ (7,210) |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with ACRES Capital Corp and Certain of its Subsidiaries) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2020 USD ($) extension | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) entity Property shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) Property shares | |
Related Party Transaction [Line Items] | ||||||
Base management fees paid by the Company | $ 1,672,000 | $ 1,379,000 | $ 3,354,000 | $ 2,705,000 | ||
General and administrative | 2,353,000 | 2,716,000 | 5,810,000 | 5,869,000 | ||
Interest income | 27,019,000 | 25,793,000 | 49,695,000 | 50,542,000 | ||
Accrued interest receivable | 7,162,000 | $ 7,162,000 | $ 6,112,000 | |||
Vest in installments | 4 years | |||||
Commercial Real Estate Loans | ||||||
Related Party Transaction [Line Items] | ||||||
Loans refinanced by affiliates | $ 38,600,000 | $ 0 | ||||
Percentage of interest acquired in property | 100% | 100% | ||||
Number of properties acquired | Property | 1 | 1 | ||||
Acquisition price of property served as collateral for loan prior to acquisition | 38,600,000 | $ 38,600,000 | $ 14,200,000 | |||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Base management fees paid by the Company | 1,700,000 | 1,400,000 | 3,400,000 | 2,700,000 | ||
Incentive compensation | 0 | 0 | 0 | 0 | ||
Total indebtedness | 558,000,000 | 558,000,000 | 561,000,000 | |||
Incentive compensation payable and Servicing fees payable | 0 | 0 | 0 | 0 | ||
General and administrative | 1,000,000 | 1,400,000 | 3,000,000 | 2,600,000 | ||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | Other Liabilities | ||||||
Related Party Transaction [Line Items] | ||||||
Total indebtedness | 362,000 | $ 362,000 | 1,200,000 | |||
ACRES Capital Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Number of securitization entities | entity | 2 | |||||
ACRES Capital Corp | XAN 2020-RSO9 Senior Notes | ||||||
Related Party Transaction [Line Items] | ||||||
Portfolio servicing fees | 0 | 0 | $ 0 | 0 | ||
Special servicing fees | 23,000 | 14,000 | 23,000 | 14,000 | ||
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% | |||||
Related party transaction, monthly amortization payment | $ 25,000 | |||||
Related party debt, maturity month and year | 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 | 11,500,000 | 11,500,000 | 11,600,000 | |||
Accrued interest receivable | 29,000 | 29,000 | $ 0 | |||
ACRES Capital Corp | ACRES Commercial Realty Corp | Loan Evidenced by Promissory Note | Other Income (Expense) | ||||||
Related Party Transaction [Line Items] | ||||||
Interest income | 87,000 | $ 89,000 | 174,000 | $ 178,000 | ||
DevCo | ||||||
Related Party Transaction [Line Items] | ||||||
Fees payments | $ 16,000,000 | $ 16,000,000 | ||||
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% | |||||
Vest in installments | 4 years | |||||
ACRES Share Holdings, LLC | Restricted Stock | Manager | ||||||
Related Party Transaction [Line Items] | ||||||
Shares of common stock vest percentage | 25% | |||||
Vest in installments | 4 years | |||||
Shares of common stock issued | shares | 299,999 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
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 | |
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 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Borrowings outstanding | $ 19,875,000 | |
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 | 4.02% | 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 | 9.62% | 9% |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial instruments carried at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | $ 2,069,459 | $ 1,873,746 |
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 |
Senior secured financing facility | 0 | |
Warehouse financing facilities | 0 | 0 |
Mortgage payable | 0 | |
Junior subordinated notes | 0 | 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) | 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 | 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 |
Senior secured financing facility | 0 | |
Warehouse financing facilities | 0 | 0 |
Mortgage payable | 0 | |
Junior subordinated notes | 0 | 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) | 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 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 9,876 | 10,407 |
Senior notes in CRE securitizations | 1,190,771 | 1,473,893 |
Senior secured financing facility | 19,875 | |
Warehouse financing facilities | 331,810 | 68,905 |
Mortgage payable | 18,710 | |
Junior subordinated notes | 35,702 | 41,424 |
Significant Unobservable Inputs (Level 3) | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,084,242 | 1,889,499 |
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) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 48,108 | 87,873 |
Significant Unobservable Inputs (Level 3) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 140,190 | 148,125 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 11,450 | 11,575 |
Senior notes in CRE securitizations | 1,231,957 | 1,466,499 |
Senior secured financing facility | 16,748 | |
Warehouse financing facilities | 328,402 | 66,771 |
Mortgage payable | 18,141 | |
Junior subordinated notes | 51,548 | 51,548 |
Carrying Value | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,064,986 | 1,869,301 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,473 | 4,445 |
Carrying Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 47,996 | 86,431 |
Carrying Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 147,173 | 146,607 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 9,876 | 10,407 |
Senior notes in CRE securitizations | 1,190,771 | 1,473,893 |
Senior secured financing facility | 19,875 | |
Warehouse financing facilities | 331,810 | 68,905 |
Mortgage payable | 18,710 | |
Junior subordinated notes | 35,702 | 41,424 |
Fair Value | CRE whole loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,084,242 | 1,889,499 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Fair Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 48,108 | 87,873 |
Fair Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | $ 140,190 | $ 148,125 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Parenthetical) (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized issuance costs and discounts | $ 20,376,000 | $ 25,628,000 |
Outstanding Borrowings | 1,841,965,000 | 1,814,424,000 |
12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized issuance costs and discounts | 32,000 | 307,000 |
Outstanding Borrowings | $ 0 | $ 0 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) - Terminated interest rate swap | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) derivative | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Realized loss on derivatives, net | $ (11,800,000) | |||||
Gain (loss) on derivatives | $ (7,500,000) | $ (8,500,000) | ||||
Amortization expense reported in interest expense | $ 484,000 | $ 484,000 | 963,000 | $ 963,000 | ||
Unrealized gains (loss) on derivatives, net | $ 302,000 | $ 347,000 | ||||
Number of hedges terminated | derivative | 2 | |||||
Interest expense to fully amortize | $ 23,000 | $ 23,000 | $ 45,000 | $ 45,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Interest rate swaps | Interest expense | ||
Derivatives, Fair Value [Line Items] | ||
Realized and Unrealized Gain (Loss) | $ (917) | $ (918) |
OFFSETTING OF FINANCIAL LIABI_3
OFFSETTING OF FINANCIAL LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Warehouse financing facilities | ||
Gross Amounts of Recognized Liabilities | $ 328,402 | $ 66,771 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Included on the Consolidated Balance Sheets | 328,402 | 66,771 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 328,402 | 66,771 |
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 | $ 434,700 | $ 102,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Estimated litigation liability | $ 0 | $ 0 |
Commercial Real Estate Loans | CRE whole loans | ||
Loss Contingencies [Line Items] | ||
Loans held for investment, unfunded loan commitments | 167,900,000 | 157,600,000 |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 1,200,000 | 1,300,000 |
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 |