Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 21, 2019 | Jun. 29, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | STARWOOD PROPERTY TRUST, INC. | ||
Entity Central Index Key | 1,465,128 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 5,521,212,127 | ||
Entity Common Stock, Shares Outstanding | 279,277,283 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and cash equivalents | $ 239,824 | $ 369,448 |
Restricted cash | 248,041 | 48,825 |
Loans held-for-investment, net | 8,532,356 | 6,562,495 |
Loans held-for-sale ($671,282 and $745,743 held at fair value) | 1,187,552 | 745,743 |
Loans transferred as secured borrowings | 74,346 | 74,403 |
Investment securities ($262,319 and $284,735 held at fair value) | 906,468 | 718,203 |
Properties, net | 2,784,890 | 2,647,481 |
Intangible assets ($20,557 and $30,759 held at fair value) | 145,033 | 183,092 |
Investment in unconsolidated entities | 171,765 | 185,503 |
Goodwill | 259,846 | 140,437 |
Derivative assets | 52,691 | 33,898 |
Accrued interest receivable | 60,355 | 47,747 |
Other assets | 152,922 | 138,140 |
Variable interest entity (“VIE”) assets, at fair value | 53,446,364 | 51,045,874 |
Total Assets | 68,262,453 | 62,941,289 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 217,663 | 185,117 |
Related-party payable | 44,043 | 42,369 |
Dividends payable | 133,466 | 125,916 |
Derivative liabilities | 15,415 | 36,200 |
Secured financing agreements, net | 8,683,565 | 5,773,056 |
Unsecured senior notes, net | 1,998,831 | 2,125,235 |
Secured borrowings on transferred loans, net | 74,239 | 74,185 |
VIE liabilities, at fair value | 52,195,042 | 50,000,010 |
Total Liabilities | 63,362,264 | 58,362,088 |
Commitments and contingencies (Note 22) | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding | ||
Common stock, $0.01 per share, 500,000,000 shares authorized, 280,839,692 issued and 275,659,552 outstanding as of December 31, 2018 and 265,983,309 issued and 261,376,424 outstanding as of December 31, 2017 | 2,808 | 2,660 |
Additional paid-in capital | 4,995,156 | 4,715,246 |
Treasury stock (5,180,140 shares and 4,606,885 shares) | (104,194) | (92,104) |
Accumulated other comprehensive income | 58,660 | 69,924 |
Accumulated deficit | (348,998) | (217,312) |
Total Starwood Property Trust, Inc. Stockholders’ Equity | 4,603,432 | 4,478,414 |
Non-controlling interests in consolidated subsidiaries | 296,757 | 100,787 |
Total Equity | 4,900,189 | 4,579,201 |
Total Liabilities and Equity | $ 68,262,453 | $ 62,941,289 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Loans-held-for-sale held at fair value | $ 671,282 | $ 745,743 |
Investment securities held at fair value | 262,319 | 284,735 |
Intangible assets held at fair value | $ 20,557 | $ 30,759 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 280,839,692 | 265,983,309 |
Common stock, shares outstanding | 275,659,552 | 261,376,424 |
Treasury stock, shares | 5,180,140 | 4,606,885 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Interest income from loans | $ 620,543 | $ 513,814 | $ 467,195 |
Interest income from investment securities | 56,839 | 52,813 | 70,848 |
Servicing fees | 78,766 | 61,446 | 88,956 |
Rental income | 349,684 | 249,000 | 152,760 |
Other revenues | 3,448 | 2,815 | 4,908 |
Total revenues | 1,109,280 | 879,888 | 784,667 |
Costs and expenses: | |||
Management fees | 129,455 | 122,699 | 117,451 |
Interest expense | 408,188 | 295,666 | 230,799 |
General and administrative | 136,132 | 129,587 | 152,941 |
Acquisition and investment pursuit costs | 8,587 | 3,472 | 13,462 |
Costs of rental operations | 127,068 | 94,258 | 65,101 |
Depreciation and amortization | 132,649 | 93,603 | 66,786 |
Loan loss allowance, net | 34,821 | (5,458) | 3,759 |
Other expense | 732 | 1,422 | 828 |
Total costs and expenses | 977,632 | 735,249 | 651,127 |
Other income (loss): | |||
Change in net assets related to consolidated VIEs | 165,892 | 252,434 | 151,593 |
Change in fair value of servicing rights | (10,202) | (24,323) | (47,149) |
Change in fair value of investment securities, net | 10,345 | (3,811) | (1,401) |
Change in fair value of mortgage loans held-for-sale, net | 40,522 | 66,987 | 74,251 |
Earnings from unconsolidated entities | 10,540 | 30,505 | 21,723 |
Gain on sale of investments and other assets, net | 59,044 | 20,499 | 1,942 |
Gain (loss) on derivative financial instruments, net | 34,603 | (72,532) | 70,734 |
Foreign currency (loss) gain, net | (9,245) | 33,671 | (33,967) |
Total other-than-temporary impairment (“OTTI”) | (180) | (54) | |
Noncredit portion of OTTI recognized in other comprehensive income | 71 | 54 | |
Net impairment losses recognized in earnings | (109) | ||
Loss on extinguishment of debt | (5,808) | (5,915) | (8,781) |
Other (loss) income, net | (812) | 2,244 | 13,510 |
Total other income | 294,879 | 299,650 | 242,455 |
Income before income taxes | 426,527 | 444,289 | 375,995 |
Income tax provision | (15,330) | (31,522) | (8,344) |
Net income | 411,197 | 412,767 | 367,651 |
Net income attributable to non-controlling interests | (25,367) | (11,997) | (2,465) |
Net income attributable to Starwood Property Trust, Inc. | $ 385,830 | $ 400,770 | $ 365,186 |
Earnings per share data attributable to Starwood Property Trust, Inc.: | |||
Basic (in dollars per share) | $ 1.44 | $ 1.53 | $ 1.52 |
Diluted (in dollars per share) | $ 1.42 | $ 1.52 | $ 1.50 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 411,197 | $ 412,767 | $ 367,651 |
Other comprehensive (loss) income (net change by component): | |||
Cash flow hedges | (25) | 51 | 39 |
Available-for-sale securities | (4,374) | 12,960 | 7,622 |
Foreign currency translation | (6,865) | 20,775 | (1,252) |
Other comprehensive (loss) income | (11,264) | 33,786 | 6,409 |
Comprehensive income | 399,933 | 446,553 | 374,060 |
Less: Comprehensive income attributable to non-controlling interests | (25,367) | (11,997) | (2,465) |
Comprehensive income attributable to Starwood Property Trust, Inc. | $ 374,566 | $ 434,556 | $ 371,595 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total Starwood Property Trust, Inc. Stockholders' Equity2023 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity2018 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity2017 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity | Common stock2023 Notes | Common stock | Additional Paid-In Capital2023 Notes | Additional Paid-In Capital2018 Notes | Additional Paid-In Capital2017 Notes | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests | 2023 Notes | 2018 Notes | 2017 Notes | Total |
Balance at Dec. 31, 2015 | $ 4,140,316 | $ 2,410 | $ 4,192,844 | $ (72,381) | $ (12,286) | $ 29,729 | $ 30,627 | $ 4,170,943 | ||||||||||
Balance (in shares) at Dec. 31, 2015 | 241,044,775 | 3,553,996 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Proceeds from public offering of common stock | 448,825 | $ 205 | 448,620 | 448,825 | ||||||||||||||
Proceeds from public offering of common stock (in shares) | 20,470,000 | |||||||||||||||||
Proceeds from DRIP Plan | 405 | 405 | 405 | |||||||||||||||
Proceeds from DRIP Plan (in shares) | 19,451 | |||||||||||||||||
Equity offering costs | (778) | (778) | (778) | |||||||||||||||
Common stock repurchased | (19,723) | $ (19,723) | $ (19,723) | |||||||||||||||
Common stock repurchased (in shares) | 1,052,889 | 1,052,889 | ||||||||||||||||
Equity component of Convertible Senior Notes issuance | $ 400 | |||||||||||||||||
Equity component of Convertible Senior Notes repurchase | $ (355) | $ (355) | $ (355) | |||||||||||||||
Share-based compensation | 32,633 | $ 15 | 32,618 | $ 32,633 | ||||||||||||||
Share-based compensation (in shares) | 1,427,027 | |||||||||||||||||
Manager incentive fee paid in stock | 17,835 | $ 9 | 17,826 | 17,835 | ||||||||||||||
Manager incentive fee paid in stock (in shares) | 932,553 | |||||||||||||||||
Net income | 365,186 | 365,186 | 2,465 | 367,651 | ||||||||||||||
Dividends declared | (468,479) | (468,479) | (468,479) | |||||||||||||||
Other comprehensive income (loss), net | 6,409 | 6,409 | 6,409 | |||||||||||||||
VIE non-controlling interests | 254 | 254 | ||||||||||||||||
Contributions from non-controlling interests | 11,387 | 11,387 | ||||||||||||||||
Distributions to non-controlling interests | (6,934) | (6,934) | ||||||||||||||||
Balance at Dec. 31, 2016 | 4,522,274 | $ 2,639 | 4,691,180 | $ (92,104) | (115,579) | 36,138 | 37,799 | 4,560,073 | ||||||||||
Balance (in shares) at Dec. 31, 2016 | 263,893,806 | 4,606,885 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Proceeds from DRIP Plan | 702 | 702 | 702 | |||||||||||||||
Proceeds from DRIP Plan (in shares) | 31,626 | |||||||||||||||||
Equity offering costs | (15) | (15) | (15) | |||||||||||||||
Equity component of Convertible Senior Notes issuance | $ 3,755 | $ 3,755 | $ 3,755 | |||||||||||||||
Equity component of Convertible Senior Notes repurchase | $ (18,105) | $ (18,105) | $ (18,105) | |||||||||||||||
Share-based compensation | 18,151 | $ 12 | 18,139 | 18,151 | ||||||||||||||
Share-based compensation (in shares) | 1,178,565 | |||||||||||||||||
Manager incentive fee paid in stock | 19,599 | $ 9 | 19,590 | 19,599 | ||||||||||||||
Manager incentive fee paid in stock (in shares) | 879,312 | |||||||||||||||||
Net income | 400,770 | 400,770 | 11,997 | 412,767 | ||||||||||||||
Dividends declared | (502,503) | (502,503) | (502,503) | |||||||||||||||
Other comprehensive income (loss), net | 33,786 | 33,786 | 33,786 | |||||||||||||||
VIE non-controlling interests | 1,718 | 1,718 | ||||||||||||||||
Contributions from non-controlling interests | 145,283 | 145,283 | ||||||||||||||||
Distributions to non-controlling interests | (96,010) | (96,010) | ||||||||||||||||
Balance at Dec. 31, 2017 | 4,478,414 | $ 2,660 | 4,715,246 | $ (92,104) | (217,312) | 69,924 | 100,787 | $ 4,579,201 | ||||||||||
Balance (in shares) at Dec. 31, 2017 | 265,983,309 | 4,606,885 | 265,983,309 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||
Proceeds from DRIP Plan | 608 | 608 | $ 608 | |||||||||||||||
Proceeds from DRIP Plan (in shares) | 28,406 | |||||||||||||||||
Equity offering costs | (22) | (22) | (22) | |||||||||||||||
Conversion of 2019 Convertible Notes | $ 238,884 | $ 124 | $ 238,760 | $ 238,884 | ||||||||||||||
Conversion of 2019 Convertible Notes (Shares) | 12,407,081 | |||||||||||||||||
Common stock repurchased | (12,090) | $ (12,090) | $ (12,090) | |||||||||||||||
Common stock repurchased (in shares) | 573,255 | 573,255 | ||||||||||||||||
Share-based compensation | 22,758 | $ 14 | 22,744 | $ 22,758 | ||||||||||||||
Share-based compensation (in shares) | 1,421,979 | |||||||||||||||||
Manager incentive fee paid in stock | 20,792 | $ 10 | 20,782 | 20,792 | ||||||||||||||
Manager incentive fee paid in stock (in shares) | 998,917 | |||||||||||||||||
Net income | 385,830 | 385,830 | 25,367 | 411,197 | ||||||||||||||
Dividends declared | (517,516) | (517,516) | (517,516) | |||||||||||||||
Other comprehensive income (loss), net | (11,264) | (11,264) | (11,264) | |||||||||||||||
VIE non-controlling interests | (5,669) | (5,669) | ||||||||||||||||
Contributions from non-controlling interests | 430,033 | 430,033 | ||||||||||||||||
Distributions to non-controlling interests | (2,962) | (2,962) | (253,442) | (256,404) | ||||||||||||||
Sale of controlling interest in majority owned property asset | (319) | (319) | ||||||||||||||||
Balance at Dec. 31, 2018 | $ 4,603,432 | $ 2,808 | $ 4,995,156 | $ (104,194) | $ (348,998) | $ 58,660 | $ 296,757 | $ 4,900,189 | ||||||||||
Balance (in shares) at Dec. 31, 2018 | 280,839,692 | 5,180,140 | 280,839,692 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | Nov. 09, 2018 | Aug. 08, 2018 | May 04, 2018 | Feb. 28, 2018 | Nov. 08, 2017 | Aug. 09, 2017 | May 09, 2017 | Feb. 23, 2017 | Nov. 02, 2016 | Aug. 04, 2016 | May 09, 2016 | Feb. 25, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Statements of Equity | |||||||||||||||
Dividends declared per common share | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | $ 1.92 | $ 1.92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 411,197 | $ 412,767 | $ 367,651 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of deferred financing costs, premiums and discounts on secured financing agreements and secured borrowings on transferred loans | 27,832 | 19,298 | 16,190 |
Amortization of discounts and deferred financing costs on senior notes | 11,785 | 21,531 | 21,667 |
Accretion of net discount on investment securities | (15,253) | (15,208) | (16,527) |
Accretion of net deferred loan fees and discounts | (38,099) | (39,084) | (48,384) |
Share-based compensation | 22,758 | 18,151 | 32,633 |
Share-based component of incentive fees | 20,792 | 19,599 | 17,835 |
Change in fair value of investment securities | (10,345) | 3,811 | 1,401 |
Change in fair value of consolidated VIEs | (17,408) | (69,483) | 28,734 |
Change in fair value of servicing rights | 10,202 | 24,323 | 47,149 |
Change in fair value of loans held-for-sale | (40,522) | (66,987) | (74,251) |
Change in fair value of derivatives | (30,828) | 68,309 | (75,122) |
Foreign currency gain (loss), net | 9,158 | (33,439) | 33,660 |
Gain on sale of investments and other assets | (59,044) | (20,499) | (1,942) |
Impairment charges on properties and related intangibles | 1,869 | 1,146 | 728 |
Loan loss allowance, net | 34,821 | (5,458) | 3,759 |
Depreciation and amortization | 130,838 | 90,896 | 61,571 |
Earnings from unconsolidated entities | (10,540) | (30,505) | (21,723) |
Distributions of earnings from unconsolidated entities | 5,917 | 67,542 | 19,983 |
Bargain purchase gain | (8,406) | ||
Loss on extinguishment of debt | 5,808 | 5,915 | 8,781 |
Origination and purchase of loans held-for-sale, net of principal collections | (2,105,232) | (2,199,390) | (1,669,543) |
Proceeds from sale of loans held-for-sale | 2,246,989 | 1,582,050 | 1,884,352 |
Changes in operating assets and liabilities: | |||
Related-party payable, net | 1,674 | 4,551 | (3,137) |
Accrued and capitalized interest receivable, less purchased interest | (62,261) | (94,077) | (76,071) |
Other assets | 8,207 | (35,300) | 12,383 |
Accounts payable, accrued expenses and other liabilities | 25,155 | 22,702 | (6,741) |
Net cash provided by (used in) operating activities | 585,470 | (246,839) | 556,630 |
Cash Flows from Investing Activities: | |||
Origination and purchase of loans held-for-investment | (4,428,891) | (3,234,987) | (2,815,333) |
Proceeds from principal collections on loans | 3,057,430 | 2,562,515 | 2,667,929 |
Proceeds from loans sold | 835,849 | 52,609 | 382,881 |
Purchase of investment securities | (492,400) | (98,394) | (360,341) |
Proceeds from sales of investment securities | 16,427 | 11,579 | 18,725 |
Proceeds from principal collections on investment securities | 382,924 | 232,793 | 108,790 |
Infrastructure lending business combination | (2,158,553) | ||
Real estate business combinations, net of cash and restricted cash acquired | (17,639) | (849,950) | |
Proceeds from sales and insurance recoveries on properties | 311,874 | 55,739 | |
Purchases and additions to properties and other assets | (54,772) | (573,930) | (15,963) |
Investment in unconsolidated entities | (3,100) | (32,186) | (11,148) |
Distribution of capital from unconsolidated entities | 21,461 | 14,252 | 15,895 |
Payments for purchase or termination of derivatives | (29,581) | (40,518) | (27,820) |
Proceeds from termination of derivatives | 20,523 | 31,456 | 85,614 |
Return of investment basis in purchased derivative asset | 151 | 272 | |
Restricted cash divested of European servicing and advisory business | (89) | ||
Net cash used in investing activities | (2,520,809) | (1,036,560) | (800,538) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings | 9,412,715 | 6,273,600 | 6,024,032 |
Principal repayments on and repurchases of borrowings | (6,360,610) | (4,586,509) | (5,266,115) |
Payment of deferred financing costs | (67,218) | (22,703) | (37,304) |
Proceeds from common stock issuances | 608 | 702 | 449,230 |
Payment of equity offering costs | (22) | (647) | (718) |
Payment of dividends | (509,966) | (501,663) | (458,351) |
Contributions from non-controlling interests | 13,407 | 106 | 11,387 |
Distributions to non-controlling interests | (256,404) | (96,010) | (6,934) |
Purchase of treasury stock | (12,090) | (19,723) | |
Issuance of debt of consolidated VIEs | 102,474 | 25,605 | 35,728 |
Repayment of debt of consolidated VIEs | (410,453) | (137,208) | (283,012) |
Distributions of cash from consolidated VIEs | 92,283 | 92,411 | 57,293 |
Net cash provided by financing activities | 2,004,724 | 1,047,684 | 505,513 |
Net (decrease) increase in cash, cash equivalents and restricted cash | 69,385 | (235,715) | 261,605 |
Cash, cash equivalents and restricted cash, beginning of year | 418,273 | 650,755 | 391,884 |
Effect of exchange rate changes on cash | 207 | 3,233 | (2,734) |
Cash, cash equivalents and restricted cash, end of year | 487,865 | 418,273 | 650,755 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 337,605 | 250,690 | 185,053 |
Income taxes paid | 10,900 | 20,767 | 9,742 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividends declared, but not yet paid | 133,237 | 125,844 | 125,075 |
Consolidation of VIEs (VIE asset/liability additions) | 9,885,200 | 3,925,370 | 21,289,873 |
Deconsolidation of VIEs (VIE asset/liability reductions) | 1,649,485 | 2,480,125 | 5,717,982 |
Net assets acquired from consolidated VIEs | 27,737 | 31,547 | 181,689 |
Fair value of assets acquired, net of cash and restricted cash | 2,167,652 | 18,507 | 1,043,112 |
Fair value of liabilities assumed | 9,099 | 760 | 184,756 |
Contribution of Woodstar II Portfolio net assets from non-controlling interests | 416,626 | 145,177 | |
Settlement of 2019 Convertible Notes in shares | $ 271,243 | ||
Settlement of loans transferred as secured borrowings | $ 35,000 | 68,206 | |
Unsettled derivative transactions | 28,472 | ||
Net assets divested of Europe servicing and advisory business, net of cash and restricted cash | 1,349 | ||
Equity interest acquired in Situs Group Holdings Corporation | $ 12,234 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2018 | |
Business and Organization | |
Business and Organization | 1. Business and Organizatio Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering (“IPO”). We are focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in both the United States (“U.S.”) and Europe. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions. We have four reportable business segments as of December 31, 2018 and we refer to the investments within these segments as our target assets: · Real estate commercial and residential lending (the “Commercial and Residential Lending Segment,” formerly known as “Real estate lending”)—engages primarily in originating, acquiring, financing and managing commercial and residential first mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”) and other real estate and real estate-related debt investments in both the U.S. and Europe (including distressed or non-performing loans). · Infrastructure lending (the “Infrastructure Lending Segment”)—engages primarily in originating, acquiring, financing and managing infrastructure debt investments. · Real estate property (the “Property Segment”) —engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, that are held for investment. · Real estate investing and servicing (the “Investing and Servicing Segment”)— includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts. Our segments exclude the consolidation of securitization variable interest entities (“VIEs”). We are organized and conduct our operations to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements. We are organized as a holding company and conduct our business primarily through our various wholly‑owned subsidiaries. We are externally managed and advised by SPT Management, LLC (our “Manager”) pursuant to the terms of a management agreement. Our Manager is controlled by Barry Sternlicht, our Chairman and Chief Executive Officer. Our Manager is an affiliate of Starwood Capital Group, a privately‑held private equity firm founded and controlled by Mr. Sternlicht. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policie Balance Sheet Presentation of Securitization Variable Interest Entities We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. Refer to the segment data in Note 23 for a presentation of our business segments without consolidation of these VIEs. Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. Entities not deemed to be VIEs are consolidated if we own a majority of the voting securities or interests or hold the general partnership interest, except in those instances in which the minority voting interest owner or limited partner can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. Substantive participative rights include the ability to select, terminate and set compensation of the investee’s management, if applicable, and the ability to participate in capital and operating decisions of the investee, including budgets, in the ordinary course of business. We invest in entities with varying structures, many of which do not have voting securities or interests, such as general partnerships, limited partnerships, and limited liability companies. In many of these structures, control of the entity rests with the general partners or managing members, while other members hold passive interests. The general partner or managing member may hold anywhere from a relatively small percentage of the total financial interests to a majority of the financial interests. For entities not deemed to be VIEs, where we serve as the sole general partner or managing member, we are considered to have the controlling financial interest and therefore the entity is consolidated, regardless of our financial interest percentage, unless there are other limited partners or investing members that can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. In those circumstances where we, as majority controlling interest owner, can be removed without cause or cannot cause the entity to take actions that are significant in the ordinary course of business, because such actions could be vetoed by the minority controlling interest owner, we do not consolidate the entity. When we consolidate entities other than securitization VIEs, the third party ownership interests are reflected as non-controlling interests in consolidated subsidiaries, a separate component of equity, in our consolidated balance sheet. When we consolidate securitization VIEs, the third party ownership interests are reflected as VIE liabilities in our consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. Our presentation of net income attributes earnings to controlling and non-controlling interests. Variable Interest Entities In addition to the securitization VIEs, certain other entities in which we hold interests are considered VIEs as the limited partners of these entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include unrated and non‑investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work‑out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, an allocable portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding allocable amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our consolidated statements of operations. The residual difference shown on our consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to nonperformance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust. REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 2% of our consolidated securitization VIE assets, with the remaining 98% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standards Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate. Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for eligible financial assets and liabilities of our consolidated securitization VIEs, loans held‑for‑sale originated or acquired for future securitization, purchased CMBS issued by VIEs we could consolidate in the future and certain investments in marketable equity securities which, effective January 1, 2018, are now required to be carried at fair value through earnings. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. Fair Value Measurements We measure our mortgage‑backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements. Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. Effective with our early adoption of ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business , in December 2017, we apply the asset acquisition provisions of ASC 805 in accounting for acquisitions of real estate with in-place leases where substantially all of the fair value of the assets acquired is concentrated in either a single identifiable asset or group of similar identifiable assets. This results in the acquired properties being recognized initially at their purchase price inclusive of acquisition costs, which are capitalized. All other acquisitions of real estate with in-place leases are accounted for in accordance with the business combination provisions of ASC 805. We also apply the asset acquisition provisions of ASC 805 for acquired real estate assets where a lease is entered into concurrently with the acquisition of the asset, such as in sale leaseback transactions. Prior to our early adoption of ASU 2017-01 , we applied the business combination provisions of ASC 805 in accounting for most acquisitions of real estate assets with in-place leases. Cash and Cash Equivalents Cash and cash equivalents include cash in banks and short‑term investments. Short‑term investments are comprised of highly liquid instruments with original maturities of three months or less. The Company maintains its cash and cash equivalents in multiple financial institutions and at times these balances exceed federally insurable limits. Restricted Cash Restricted cash includes cash and cash equivalents that are legally or contractually restricted as to withdrawal or usage and primarily includes (i) loan payments received by our Infrastructure Lending Segment which are restricted by our lender and periodically applied, in part, to the outstanding balance of the Infrastructure Lending debt facility, (ii) cash collateral associated with derivative financial instruments and (iii) funds held on behalf of borrowers and tenants. Loans Held‑for‑Investment Loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. Loan Impairment We evaluate each loan classified as held-for-investment for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, we record an allowance through the provision for loan losses to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. There may be circumstances where we modify a loan by granting the borrower a concession that we might not otherwise consider when a borrower is experiencing financial difficulty or is expected to experience financial difficulty in the foreseeable future. Such concessionary modifications are classified as troubled debt restructurings (“TDRs”) unless the modification solely results in a delay in payment that is insignificant. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes. Loans Held‑For‑Sale Our loans that we intend to sell or liquidate in the short‑term are classified as held‑for‑sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase. With regards to our Investing and Servicing Segment’s conduit business, we periodically enter into derivative financial instruments to hedge unpredictable changes in fair value of loans held-for-sale, including changes resulting from both interest rates and credit quality. Because these derivatives are not designated, changes in their fair value are recorded in earnings. In order to best reflect the results of the hedged loan portfolio in earnings, we have elected the fair value option for these loans. As a result, changes in the fair value of the loans are also recorded in earnings. Investment Securities We designate our debt investment securities as held-to-maturity, available-for-sale, or trading depending on our investment strategy and ability to hold such securities to maturity. Held-to-maturity debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as available-for-sale and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on available-for-sale debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in stockholders’ equity. When the estimated fair value of a debt security for which we have not elected the fair value option is less than its amortized cost, we consider whether there is OTTI in the value of the security. An impairment is deemed an OTTI if (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovering our cost basis or (iii) we do not expect to recover the entire amortized cost basis of the security even if we do not intend to sell the security or do not believe it is more likely than not that we will be required to sell the security before recovering our cost basis. If the impairment is deemed to be an OTTI, the resulting accounting treatment depends on the factors causing the OTTI. If the OTTI has resulted from (i) our intention to sell the security, or (ii) our judgment that it is more likely than not that we will be required to sell the security before recovering our cost basis, an impairment loss is recognized in earnings equal to the entire difference between our amortized cost basis and fair value. Whereas, if the OTTI has resulted from our conclusion that we will not recover our cost basis even if we do not intend to sell the security or do not believe it is more likely than not that we will be required to sell the security before recovering our cost basis, only the credit loss portion of the impairment is recorded in earnings, and the portion of the loss related to other factors, such as changes in interest rates, continues to be recognized in AOCI. Following the recognition of an OTTI through earnings, a new cost basis is established for the security. Determining whether there is an OTTI may require us to exercise significant judgment and make significant assumptions, including, but not limited to, estimated cash flows, estimated prepayments, loss assumptions, and assumptions regarding changes in interest rates. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. Properties Held-For-Investment Properties, net, as reported on our consolidated balance sheets, consist of commercial real estate properties held-for-investment and are recorded at cost, less accumulated depreciation and impairments, if any. Properties consist primarily of land, buildings and improvements. Land is not depreciated, and buildings and improvements are depreciated on a straight-line basis over their estimated useful lives. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. We review properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is determined by comparing the carrying amount of the property to the undiscounted future net cash flows it is expected to generate. If such carrying amount exceeds the expected undiscounted future net cash flows, we adjust the carrying amount of the property to its estimated fair value. Properties Held-For-Sale Properties and any associated intangible assets are presented within properties held-for-sale on our consolidated balance sheet when the sale of the property is considered probable, at which time we cease depreciation and amortization of the property and the associated intangibles. Held-for-sale properties are reported at the lower of their carrying value or fair value less costs to sell. There were no properties held-for-sale at December 31, 2018 or 2017. Servicing Rights Intangibles Our identifiable intangible assets include U.S. special servicing rights and, until October 2016, also included European servicing rights. For the U.S. special servicing rights, we have elected to apply the fair value measurement method, which is necessary to conform to our election of the fair value option for measuring the assets and liabilities of the VIEs consolidated pursuant to ASC 810. For the European servicing rights, the amortization method was elected and the asset was amortized in proportion to and over the period of estimated net servicing income. Lease Intangibles In connection with our acquisition of properties, we recognize intangible lease assets and liabilities associated with certain noncancelable operating leases of the acquired properties. These intangible lease assets and liabilities include in-place lease intangible assets, favorable lease intangible assets and unfavorable lease liabilities. In-place lease intangible assets reflect the acquired benefit of purchasing properties with in-place leases and are measured based on estimates of direct costs associated with leasing the property and lost rental income during projected lease-up and free rent periods, both of which are avoided due to the presence of in-place leases at the acquisition date. Favorable and unfavorable lease intangible assets and liabilities reflect the terms of in-place tenant leases being either favorable or unfavorable relative to market terms at the acquisition date. The estimated fair values of our favorable and unfavorable lease assets and liabilities at the respective acquisition dates represent the discounted cash flow differential between the contractual cash flows of such leases and the estimated cash flows that comparable leases at market terms would generate. Our intangible lease assets and liabilities are recognized within intangible assets and other liabilities, respectively, in our consolidated balance sheets. Our in-place lease intangible assets are amortized to amortization expense while our favorable and unfavorable lease intangible assets and liabilities where we are the lessor are amortized to rental income. Favorable and unfavorable lease intangible assets and liabilities where we are the lessee are amortized to costs of rental operations, except in the case of our unfavorable lease liability associated with office space occupied by the Company, which is amortized to general and administrative expense. Both our favorable and unfavorable lease intangible assets and liabilities are amortized over the remaining noncancelable term of the respective leases on a straight-line basis. Lease Classification In accordance with ASC 840, Leases , we evaluate all new or amended leases to determine if the lease (i) provides for a transfer of ownership to the lessee at the conclusion of the lease, (ii) provides the lessee with a bargain purchase option, (iii) has a term of 75% or more of the leased asset’s remaining useful life or (iv) has minimum lease payments with a present value of 90% or more of the leased asset’s fair value. If any of these conditions exist, we account for the lease as a capital lease, otherwise, the lease is considered an operating lease. Investment in Unconsolidated Entities We own non‑controlling equity interests in various privately‑held partnerships and limited liability companies. Unless we elect the fair value option under ASC 825, we use the cost method to account for investments in which our interest is so minor that we have virtually no influence over the underlying investees. We use the equity method to account for all other non‑controlling interests in partnerships and limited liability companies. Equity method investments are initially recorded at cost and subsequently adjusted for our share of income or loss, as well as contributions made or distributions received. Prior to January 1, 2018, all cost method investments were initially recorded at cost with income generally recorded when distributions were received. On January 1, 2018, ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , became effective prospectively for public companies with a calendar fiscal year. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures, and limited liability companies, at fair value with changes in fair value recognized within net income. This ASU does not apply to equity method investments, investments in Federal Home Loan Bank (“FHLB”) stock, investments that result in consolidation of the investee or investments in certain investment companies. For investments in equity securities without a readily determinable fair value, an entity is permitted to elect a practicability exception, under which the investment will be measured at cost, less impairment, plus or minus observable price changes from orderly transactions of an identical or similar investment of the same issuer. Our equity investments within the scope of this ASU are limited to our cost method equity investments discussed in Note 8, with the exception of our FHLB stock which is outside the scope of this ASU, and to our marketable equity security discussed in Note 6 for which we had previously elected the fair value option. Our cost method equity investments within the scope of this ASU do not have readily determinable fair values. Therefore, we have elected the practicability exception whereby we measure these investments at cost, less impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. Additionally, this ASU eliminated the requirement to assess whether an impairment of an equity investment is other than temporary. The impairment model for equity investments subject to this election is now a single-step model whereby an entity performs a qualitative assessment to identify impairment. If the qualitative assessment indicates that an impairment exists, the entity would estimate the fair value of the investment and recognize in net income an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. We continue to review our equity method and other i |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 3. Acquisitions and Divestiture Infrastructure Lending Segment On September 19, 2018, we acquired the project finance origination, underwriting and capital markets business of GE Capital Global Holdings, LLC (“GE Capital”) for approximately $2.0 billion (the “Infrastructure Lending Segment”) and on October 15, 2018, we acquired two additional senior secured project finance loans from GE Capital for $147.1 million. In total, the business included $2.1 billion of funded senior secured project finance loans and investment securities and $466.3 million of unfunded lending commitments (the “Infrastructure Lending Portfolio”) which are secured primarily by natural gas and renewable power facilities. We utilized $1.7 billion in new financing in order to fund the acquisition. The Infrastructure Lending Portfolio is 97% floating rate with 74% of the collateral located in the U.S., 12% in Mexico, 5% in the United Kingdom and the remaining collateral dispersed through the Middle East, Ireland, Australia, Canada and Spain. The loans are predominantly denominated in U.S. Dollars (“USD”) and backed by long term power purchase agreements primarily with investment grade counterparties. The Company hired a team of professionals from GE Capital’s project finance division in connection with the acquisition to manage and expand the Infrastructure Lending Portfolio. Goodwill of $119.4 million was recognized in connection with the Infrastructure Lending Segment acquisition as the consideration paid exceeded the fair value of the net assets acquired. From the acquisition dates through December 31, 2018, we have recognized revenues of $30.7 million and a net loss of $2.6 million related to the portfolio. Such net loss primarily reflects interest income from loans and investment securities of $30.1 million, offset by interest expense of $20.9 million, general and administrative expenses of $5.6 million and one-time acquisition-related costs including a $3.0 million commitment fee related to an unused bridge financing facility and legal and due diligence costs of $3.8 million. We applied the provisions of ASC 805, Business Combinations, in accounting for our acquisition of the Infrastructure Lending Segment. In doing so, we have recorded all identifiable assets acquired and liabilities assumed at fair value as of the respective acquisition dates. These amounts are provisional and may be adjusted during the measurement period, which expires no later than one year from the acquisition date, if new information is obtained that, if known, would have affected the amounts recognized as of the respective acquisition dates. During the three months ended December 31, 2018, in accordance with ASU 2015-16, Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments , we adjusted our initial provisional estimates of the acquisition date fair values of the identified assets acquired and liabilities assumed to reflect new information obtained regarding facts and circumstances that existed at the September 19, 2018 acquisition date. The following table summarizes the measurement period adjustment applied to the initial provisional acquisition date balance sheet from the September 19, 2018 acquisition date, as well as the identified assets acquired and liabilities assumed at the October 15, 2018 acquisition date (amounts in thousands): Initial Measurement September 19, 2018 Period October 15, 2018 Adjusted Assets acquired: Acquisition Adjustment Acquisition Amounts Loans held-for-investment $ 1,506,544 $ (3,189) $ 146,275 $ 1,649,630 Loans held-for-sale 319,879 (169) — 319,710 Investment securities 65,060 — — 65,060 Accrued interest receivable 12,566 427 850 13,843 Total identifiable assets acquired 1,904,049 (2,931) 147,125 2,048,243 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,327 490 — 8,817 Derivative liabilities 282 — — 282 Total liabilities assumed 8,609 490 — 9,099 Net assets acquired $ 1,895,440 $ (3,421) $ 147,125 $ 2,039,144 The net income effect associated with the measurement period adjustment during the three months ended December 31, 2018 was immaterial. Investing and Servicing Segment Property Portfolio During the year ended December 31, 2018, our Investing and Servicing Segment acquired $52.7 million in net assets of three commercial real estate properties from CMBS trusts for a total gross purchase price of $53.1 million. These properties, aggregated with the controlling interests in 16 remaining commercial real estate properties acquired from CMBS trusts prior to December 31, 2017 for an aggregate acquisition price of $248.9 million, comprise the Investing and Servicing Segment Property Portfolio (the “REIS Equity Portfolio”). When the properties are acquired from CMBS trusts that are consolidated as VIEs on our balance sheet, the acquisitions are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the year ended December 31, 2018, we sold nine properties within the Investing and Servicing Segment for $77.9 million recognizing a total gain on sale of $26.6 million within gain on sale of investments and other assets in our consolidated statements of operations. One of these properties was acquired by a third party which already held a $0.3 million non-controlling interest in the property. During the year ended December 31, 2018, $5.1 million of the gain on sale was attributable to non-controlling interests. During the year ended December 31, 2017, we sold five properties within the Investing and Servicing Segment for $52.4 million recognizing gain on sale of $19.8 million within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2017, $3.3 million of such gains were attributable to non-controlling interests. No Investing and Servicing segment properties were sold during the year ended December 31, 2016. Woodstar II Portfolio During the year ended December 31, 2018, we acquired the final 19 properties of the 27 affordable housing communities comprising our “Woodstar II Portfolio”. The Woodstar II Portfolio in its entirety is comprised of 6,109 units concentrated primarily in Central and South Florida and is 100% occupied. The 19 affordable housing communities acquired during the year ended December 31, 2018 consist of 4,369 units and were acquired for $438.1 million, including contingent consideration of $29.2 million (the “2018 Closing”). The properties acquired in the 2018 Closing were recognized initially at the purchase price of $408.9 million plus capitalized acquisition costs of $4.1 million. Government sponsored mortgage debt of $27.0 million with weighted average fixed annual interest rates of 3.06% and remaining weighted average terms of 27.5 years was assumed at closing. We financed a portion of the 2018 Closing utilizing new 10-year mortgage debt totaling $300.9 million with weighted average fixed annual interest rates of 3.82% (as set forth in Note 10). In December 2017, we acquired eight of the affordable housing communities (the “2017 Closing”), which include 1,740 units, for $156.2 million, including contingent consideration of $10.8 million. We financed the 2017 Closing utilizing 10-year mortgage debt totaling $116.7 million with a fixed 3.81% interest rate. We effectuated the Woodstar II Portfolio acquisitions via a contribution of the properties by third parties (the “Contributors”) to SPT Dolphin Intermediate LLC (“SPT Dolphin”), a newly-formed, wholly-owned subsidiary of the Company. In exchange for the contribution, the Contributors received cash, Class A units of SPT Dolphin (the “Class A Units”) and rights to receive additional Class A Units if certain contingent events occur. Initially, the Class A unitholders had the right, commencing six months from issuance, to redeem their Class A Units for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. In August 2018, the redemption rights were amended to allow Class A unitholders the option to redeem only after the earlier of (i) October 3, 2018 and (ii) three business days after the August 23, 2018 acquisition of the final property in the Woodstar II Portfolio. No other terms of the redemption rights were amended. No redemptions of Class A Units occurred during the year ended December 31, 2018. The 2018 Closing resulted in the Contributors receiving cash of $225.8 million, 7,403,731 Class A Units and rights to receive an additional 1,411,642 Class A Units if certain contingent events occur. In aggregate, the 2018 Closing and 2017 Closing have resulted in the Contributors receiving cash of $310.7 million, 10,183,505 Class A Units and rights to receive an additional 1,910,563 Class A Units if certain contingent events occur. In November 2018, we issued 1,727,314 of the total 1,910,563 contingent Class A Units to the Contributors. Since substantially all of the fair value of the properties acquired was concentrated in a group of similar identifiable assets, the Woodstar II Portfolio acquisitions were accounted for in accordance with the asset acquisition provisions of ASC 805, Business Combinations . Master Lease Portfolio On September 25, 2017, we acquired 20 retail properties and three industrial properties (the “Master Lease Portfolio”) for a purchase price of $553.3 million, inclusive of $3.7 million of related transaction costs. Concurrently with the acquisition, we leased the properties back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. These properties, which collectively comprise 5.3 million square feet, are geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Utah, Florida, Texas and Minnesota. We utilized $265.9 million in new financing in order to fund the acquisition. This sale leaseback transaction was accounted for as an asset acquisition. During the year ended December 31, 2018, we sold four retail properties and three industrial properties within the Master Lease Portfolio for $235.4 million, recognizing a gain on sale of $28.5 million within gain on sale of investments and other assets in our consolidated statement of operations. There were no properties sold within the Master Lease Portfolio during the year ended December 31, 2017. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired for a purchase price of $758.7 million during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. No goodwill or bargain purchase gains were recognized in connection with the Medical Office Portfolio acquisition as the purchase price equaled the fair value of the net assets acquired. Woodstar I Portfolio The Woodstar I Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar I Portfolio with the final 14 communities acquired during the year ended December 31, 2016 for an aggregate acquisition price of $421.5 million (of which $97.4 million related to 2016). We assumed federal, state and county sponsored financing and other debt in connection with this acquisition. No goodwill was recognized in connection with the Woodstar Portfolio acquisition as the purchase price did not exceed the fair value of the net assets acquired. A bargain purchase gain of $8.4 million was recognized within other income, net in our consolidated statement of operations for the year ended December 31, 2016 as the fair value of the net assets acquired exceeded the purchase price due to favorable changes in net asset fair values occurring between the date the purchase price was negotiated and the closing date. Purchase Price Allocations of Business Combinations We applied the business combination provisions of ASC 805 in accounting for our acquisition of the Infrastructure Lending Segment and, prior to our adoption of ASU 2017-01 in December 2017, the REIS Equity Portfolio, Medical Office Portfolio and the Woodstar I Portfolio. In doing so, we have recorded all identifiable assets acquired and liabilities assumed at fair value as of the respective acquisition dates. These amounts for the Infrastructure Lending Segment are provisional and may be adjusted during the measurement period, which expires no later than one year from the acquisition date, if new information is obtained that, if known, would have affected the amounts recognized as of the acquisition date. The following table summarizes the identified assets acquired and liabilities assumed as of the respective acquisition dates, including the effect of the measurement period adjustments set forth above (amounts in thousands): 2018 2017 2016 Infrastructure REIS Equity Medical Office Woodstar I REIS Equity Assets acquired: Lending Segment Portfolio Portfolio Portfolio Portfolio Cash and cash equivalents $ — $ — $ — $ 6,254 $ — Loans held-for-investment 1,649,630 — — — — Loans held-for-sale 319,710 — — — — Investment securities 65,060 — — — — Properties — 38,770 678,727 245,430 124,479 Intangible assets — 11,955 85,508 8,174 24,836 Accrued interest receivable 13,843 — — — — Other assets — 85 5,233 16,417 2,978 Total identifiable assets acquired 2,048,243 50,810 769,468 276,275 152,293 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 1,516 10,811 19,666 7,216 Derivative liabilities 282 — — — — Secured financing agreements — — — 150,763 — Total liabilities assumed 9,099 1,516 10,811 170,429 7,216 Non-controlling interests — — — — 6,462 Net assets acquired $ 2,039,144 $ 49,294 $ 758,657 $ 105,846 $ 138,615 Goodwill represents the excess of the purchase price over the fair value of the underlying assets acquired and liabilities assumed. This determination of goodwill resulting from the Infrastructure Lending Segment acquisition is as follows (amounts in thousands): 2018 Infrastructure Lending Segment Purchase price $ 2,158,553 Preliminary estimate of the fair value of net assets acquired 2,039,144 Goodwill $ 119,409 Pro Forma Operating Data (Unaudited) The unaudited pro forma revenues and net income attributable to the Company for the years ended December 31, 2018 and 2017, assuming the Infrastructure Lending Segment was acquired on January 1, 2017, are as follows (amounts in thousands, except per share amounts): For the Year Ended December 31, (Unaudited) 2018 2017 Revenues $ 1,182,892 $ 966,636 Net income attributable to STWD 392,505 395,150 Net income per share - Basic 1.47 1.51 Net income per share - Diluted 1.44 1.50 Ireland Portfolio During the year ended December 31, 2017, we sold one office property within the Ireland Portfolio for $3.9 million, recognizing an immaterial gain on sale within gain on sale of investments and other assets in our consolidated statement of operations. There were no properties sold within the Ireland Portfolio during the years ended December 31, 2018 and 2016. Refer to Note 7 for further discussion of the Ireland Portfolio. European Servicing and Advisory Business Divestiture In October 2016, we contributed the equity in the subsidiary which owned our European servicing and advisory business to Situs Group Holdings Corporation (“Situs”) in exchange for a non-controlling 6.25% equity interest valued at $12.2 million. We contributed net assets with a carrying value of $3.2 million and recognized a gain of $0.2 million in connection with the exchange, which includes an $8.8 million loss resulting from a release of the accumulated foreign currency translation adjustment component of equity, all recognized within gain on sale of investments and other assets, net in our consolidated statement of operations for the year ended December 31, 2016. We account for the interest we received in Situs as a cost method investment, as set forth in Note 8. |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash. | |
Restricted Cash | 4. Restricted Cas A summary of our restricted cash as of December 31, 2018 and 2017 is as follows (amounts in thousands): As of December 31, 2018 2017 Cash restricted by lender $ 175,659 $ — Cash collateral for derivative financial instruments 37,245 26,256 Funds held on behalf of borrowers and tenants 12,838 10,918 Other restricted cash 22,299 11,651 $ 248,041 $ 48,825 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Loans | |
Loans | 5. Loan Our loans held‑for‑investment are accounted for at amortized cost and our loans held‑for‑sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option. The following tables summarize our investments in mortgages and loans by subordination class as of December 31, 2018 and 2017 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2018 Value Amount Coupon (years)(1) First mortgages (2) $ 6,607,117 $ 6,631,236 6.9 % 2.0 First priority infrastructure loans 1,456,779 1,465,828 5.7 % 4.5 Subordinated mortgages (3) 52,778 53,996 8.9 % 3.7 Mezzanine loans (2) 393,832 394,739 10.6 % 2.0 Other 61,001 64,658 8.2 % 2.5 Total loans held-for-investment 8,571,507 8,610,457 Loans held-for-sale, fair value option, residential 623,660 609,571 6.3 % 6.6 Loans held-for-sale, commercial ($47,622 under fair value option) 94,117 94,916 5.4 % 6.2 Loans held-for-sale, infrastructure 469,775 486,909 3.5 % 0.3 Loans transferred as secured borrowings 74,346 74,692 7.1 % 1.3 Total gross loans 9,833,405 9,876,545 Loan loss allowance (loans held-for-investment) (39,151) — Total net loans $ 9,794,254 $ 9,876,545 December 31, 2017 First mortgages (2) $ 5,818,804 $ 5,843,623 6.2 % 2.0 Subordinated mortgages (3) 177,115 177,386 10.8 % 1.9 Mezzanine loans (2) 545,299 545,355 11.0 % 1.1 Other 25,607 29,320 8.5 % 3.9 Total loans held-for-investment 6,566,825 6,595,684 Loans held-for-sale, fair value option, residential 613,287 594,105 6.2 % 5.4 Loans held-for-sale, fair value option, commercial 132,456 132,393 4.6 % 10.0 Loans transferred as secured borrowings 74,403 75,000 6.2 % 2.3 Total gross loans 7,386,971 7,397,182 Loan loss allowance (loans held-for-investment) (4,330) — Total net loans $ 7,382,641 $ 7,397,182 (1) Represents the WAL of each respective group of loans as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition. (2) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.0 billion and $851.1 million being classified as first mortgages as of December 31, 2018 and 2017, respectively. (3) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan. During the year ended December 31, 2018, the Company received distributions totaling $15.1 million from a profit participation in a mortgage loan that was repaid in 2016. The loan was secured by a retail and hospitality property located in the Times Square area of New York City. The profit participation is accounted for as a loan in accordance with the acquisition, development and construction accounting guidance within ASC 310-10, which results in distributions in excess of basis being recognized within interest income in our consolidated statements of operations. As of December 31, 2018, approximately $8.1 billion, or 94.0%, of our loans held for-investment were variable rate and paid interest principally at LIBOR plus a weighted‑average spread of 4.3%. We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the collateral. In addition, we consider the overall economic environment, real estate or industry sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants. Our evaluation process, as described above, produces an internal risk rating between 1 and 5, which is a weighted average of the numerical ratings in the following categories: (i) sponsor capability and financial condition, (ii) loan and collateral performance relative to underwriting, (iii) quality and stability of collateral cash flows and (iv) loan structure. We utilize the overall risk ratings as a concise means to monitor any credit migration on a loan as well as on the whole portfolio. While the overall risk rating is generally not the sole factor we use in determining whether a loan is impaired, a loan with a higher overall risk rating would tend to have more adverse indicators of impairment and therefore would be more likely to experience a credit loss. The rating categories for commercial real estate loans generally include the characteristics described below, but these are utilized as guidelines and therefore not every loan will have all of the characteristics described in each category: Rating Characteristics 1 Sponsor capability and financial condition—Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience. Loan collateral and performance relative to underwriting—The collateral has surpassed underwritten expectations. Quality and stability of collateral cash flows—Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. Loan structure—LTV does not exceed 65%. The loan has structural features that enhance the credit profile. 2 Sponsor capability and financial condition—Strong sponsorship with experienced management team and a responsibly leveraged portfolio. Loan collateral and performance relative to underwriting—Collateral performance equals or exceeds underwritten expectations and covenants and performance criteria are being met or exceeded. Quality and stability of collateral cash flows—Occupancy is stabilized with a diverse tenant mix. Loan structure—LTV does not exceed 70% and unique property risks are mitigated by structural features. 3 Sponsor capability and financial condition—Sponsor has historically met its credit obligations, routinely pays off loans at maturity, and has a capable management team. Loan collateral and performance relative to underwriting—Property performance is consistent with underwritten expectations. Quality and stability of collateral cash flows—Occupancy is stabilized, near stabilized, or is on track with underwriting. Loan structure—LTV does not exceed 80%. 4 Sponsor capability and financial condition—Sponsor credit history includes missed payments, past due payment, and maturity extensions. Management team is capable but thin. Loan collateral and performance relative to underwriting—Property performance lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. A sale of the property may be necessary in order for the borrower to pay off the loan at maturity. Quality and stability of collateral cash flows—Occupancy is not stabilized and the property has a large amount of rollover. Loan structure—LTV is 80% to 90%. 5 Sponsor capability and financial condition—Credit history includes defaults, deeds‑in‑lieu, foreclosures, and/or bankruptcies. Loan collateral and performance relative to underwriting—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. Sale proceeds would not be sufficient to pay off the loan at maturity. Quality and stability of collateral cash flows—The property has material vacancy and significant rollover of remaining tenants. Loan structure—LTV exceeds 90%. As of December 31, 2018, the risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans First Priority Transferred % of Risk Rating First Infrastructure Subordinated Mezzanine As Secured Total Category Mortgages Loans Mortgages Loans Other Borrowings Total Loans 1 $ 6,538 $ — $ — $ — $ 23,767 $ — $ 30,305 0.3 % 2 3,356,342 — 7,392 111,466 — 74,346 3,549,546 36.1 % 3 2,987,296 — 33,410 282,366 31,039 — 3,334,111 33.9 % 4 63,094 — — — — — 63,094 0.6 % 5 — — — — — — — — % N/A 193,847 (1) 1,456,779 (2) 11,976 (1) — 6,195 (1) — 1,668,797 17.0 % $ 6,607,117 $ 1,456,779 $ 52,778 $ 393,832 $ 61,001 $ 74,346 8,645,853 Loans held-for-sale 1,187,552 12.1 % Total gross loans $ 9,833,405 100.0 % (1) Represents loans individually evaluated for impairment in accordance with ASC 310-10. (2) First priority infrastructure loans were not risk rated as of December 31, 2018 as the Company is in the process of developing a risk rating policy for these loans. As of December 31, 2017, the risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans Transferred % of Risk Rating First Subordinated Mezzanine As Secured Total Category Mortgages Mortgages Loans Other Borrowings Total Loans 1 $ 2,003 $ — $ — $ 20,267 $ — $ 22,270 0.3 % 2 2,462,268 11,927 137,803 — — 2,611,998 35.4 % 3 3,183,592 165,188 407,496 5,340 74,403 3,836,019 51.9 % 4 120,479 — — — — 120,479 1.6 % 5 50,462 — — — — 50,462 0.7 % N/A — — — — — — — % $ 5,818,804 $ 177,115 $ 545,299 $ 25,607 $ 74,403 6,641,228 Loans held-for-sale 745,743 10.1 % Total gross loans $ 7,386,971 100.0 % In accordance with our loan impairment policy, during the year ended December 31, 2018, we recorded impairment charges of $38.2 million. Of such $38.2 million impairment charges, $21.6 million relates to a residential conversion project located in New York City, for which our recorded investment was as follows as of December 31, 2018: (i) $110.9 million first mortgage loan ($94.8 million unpaid principal balance and $5.5 million provision for impaired loans); (ii) $48.3 million mezzanine loan ($31.2 million unpaid principal balance and $16.1 million provision for impaired loan); and (iii) $6.2 million unsecured promissory note ($6.5 million unpaid principal balance and zero provision for impaired loan). In making our determinations surrounding impairment, we considered the property’s liquidation value, the financial wherewithal of the sponsor, the borrower’s competency in managing and operating the project and the overall economic environment. Impairment charges of $8.3 million recorded during the year ended December 31, 2018 relate to two subordinated mortgages on department stores located in the Greater Chicago area. The sole tenant filed for bankruptcy earlier in the year, and the bankruptcy court ordered liquidation of the retailer during the year ended December 31, 2018. In making the determination that the loans were impaired, we considered the property’s liquidation value and the financial wherewithal of the tenant’s parent company to honor certain guarantees. Our recorded investment in these loans totaled $12.2 million ($12.0 million unpaid principal balance and $8.3 million provision for impaired loan) as of December 31, 2018. The remaining $8.3 million of impairment charges recorded during the year ended December 31, 2018 relate to a first mortgage loan on a grocery distribution facility located in Montgomery, Alabama that is leased to a single tenant. The tenant filed for bankruptcy earlier in the year with the bankruptcy court subsequently rejecting the lease. The tenant has since vacated the property and ceased making debt service payments. In making our determinations surrounding impairment, we considered the property’s liquidation value and our intent to foreclose. Our recorded investment in the loan totaled $20.7 million ($24.3 million unpaid principal balance net of a $3.6 million unamortized discount) as of December 31, 2018. We also have a first mortgage loan on a grocery distribution facility in Orlando, Florida that is leased to the same tenant. This lease was similarly rejected by the bankruptcy court with the tenant vacating and ceasing debt service. In making our determinations surrounding impairment, we considered the property’s liquidation value and our intent to foreclose. Because the value of the property exceeds our recorded investment, we determined that no impairment reserve was required. Our recorded investment in the loan totaled $14.1 million ($17.5 million unpaid principal balance net of a $3.4 million unamortized discount) as of December 31, 2018. We apply the cost recovery method of interest income recognition for these impaired loans. The average recorded investment in the impaired loans for the year ended December 31, 2018 was $221.6 million. During the year ended December 31, 2018, we modified certain loans as TDRs, consisting of the mezzanine loan and unsecured promissory note on the residential conversion project discussed above. In the case of the mezzanine loan, the interest rate was modified to a below market interest rate. In the case of the unsecured promissory note, the maturity date was extended, causing a delay in timing that was not insignificant to the debt’s original contractual maturity. As of December 31, 2018, the mezzanine loan was fully funded and the unsecured promissory note had an unfunded commitment of $5.5 million. There were no TDRs for which interest income was recognized during the year ended December 31, 2018. As of December 31, 2018, the department store loans and the first mortgage loan on a grocery distribution facility located in Montgomery, Alabama discussed above were 90 days or greater past due, as were $3.8 million of residential loans. In accordance with our interest income recognition policy, these loans were placed on cost recovery once 90 days or greater past due. In accordance with our policies, we record an allowance for loan losses equal to (i) 1.5% of the aggregate carrying amount of loans rated as a “4,” plus (ii) 5% of the aggregate carrying amount of loans rated as a “5,” plus (iii) impaired loan reserves, if any. The following table presents the activity in our allowance for loan losses (amounts in thousands): For the year ended December 31, 2018 2017 2016 Allowance for loan losses at January 1 $ 4,330 $ 9,788 $ 6,029 Provision for (reversal of) loan losses (3,384) (5,458) 3,759 Provision for impaired loans 38,205 — — Charge-offs — — — Recoveries — — — Allowance for loan losses at December 31 $ 39,151 $ 4,330 $ 9,788 Recorded investment in loans related to the allowance for loan loss $ $ 170,941 $ 516,450 The activity in our loan portfolio was as follows (amounts in thousands): For the year ended December 31, 2018 2017 2016 Balance at January 1 $ 7,382,641 $ 5,946,274 $ 6,263,517 Acquisition of Infrastructure Lending Portfolio 1,969,340 — — Acquisitions/originations/additional funding 6,723,144 5,500,539 4,502,842 Capitalized interest (1) 63,047 74,339 80,992 Basis of loans sold (2) (3,082,347) (1,634,717) (2,266,901) Loan maturities/principal repayments (3,272,666) (2,658,522) (2,742,462) Discount accretion/premium amortization 38,099 39,084 48,384 Changes in fair value 40,522 66,987 74,251 Unrealized foreign currency translation (loss) gain (32,341) 42,356 (47,906) Change in loan loss allowance, net (34,821) 5,458 (3,759) Transfer to/from other asset classifications (364) 843 37,316 (3) Balance at December 31 $ 9,794,254 $ 7,382,641 $ 5,946,274 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 12 for additional disclosure on these transactions. (3) Primarily represents commercial mortgage loans acquired from CMBS trusts which are consolidated as VIEs on our balance sheet. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Investment Securities | 6. Investment Securitie Investment securities were comprised of the following as of December 31, 2018 and 2017 (amounts in thousands): Carrying Value as of December 31, 2018 2017 RMBS, available-for-sale $ 209,079 $ 247,021 RMBS, fair value option (1) 87,879 — CMBS, fair value option (1) 1,157,508 1,024,143 Held-to-maturity (“HTM”) debt securities, amortized cost 644,149 433,468 Equity security, fair value 11,893 13,523 Subtotal — Investment securities 2,110,508 1,718,155 VIE eliminations (1) (1,204,040) (999,952) Total investment securities $ 906,468 $ 718,203 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. Purchases, sales and principal collections for all investment securities were as follows (amounts in thousands): RMBS, RMBS, fair CMBS, fair HTM Equity Securitization available-for-sale value option value option Securities Security VIEs (1) Total Year Ended December 31, 2018 Purchases $ — $ 90,982 $ 323,071 $ 463,810 $ — $ (385,463) $ 492,400 Acquisition of Infrastructure Lending Portfolio — — — 65,060 — — 65,060 Sales 13,264 — 105,637 — — (102,474) 16,427 Principal collections 34,763 1,439 114,545 327,207 — (95,030) 382,924 Year Ended December 31, 2017 Purchases $ 7,433 $ — $ 125,776 $ 79,163 $ — $ (113,978) $ 98,394 Sales — — 37,184 — — (25,605) 11,579 Principal collections 40,635 — 109,354 182,919 — (100,115) 232,793 Year Ended December 31, 2016 Purchases $ 98,035 $ — $ 167,976 $ 204,730 $ — $ (110,400) $ 360,341 Sales — — 54,453 — — (35,728) 18,725 Principal collections 43,445 — 117,059 6,910 — (58,624) 108,790 (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. RMBS, Available‑for‑Sale The Company classified all of its RMBS not eliminated in consolidation as available‑for‑sale as of December 31, 2018 and 2017. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in AOCI. The tables below summarize various attributes of our investments in available‑for‑sale RMBS as of December 31, 2018 and 2017 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Purchase Recorded Gross Gross Net Amortized Credit Amortized Non-Credit Unrealized Unrealized Fair Value Cost OTTI Cost OTTI Gains Losses Adjustment Fair Value December 31, 2018 RMBS $ 165,461 $ (9,897) $ 155,564 $ (31) $ 53,546 $ — $ 53,515 $ December 31, 2017 RMBS $ 199,029 $ (9,897) $ 189,132 $ (94) $ 58,011 $ (28) $ 57,889 $ 247,021 Weighted Average Coupon (1) Weighted Average WAL December 31, 2018 RMBS 3.7 % CCC- 6.0 December 31, 2017 RMBS 2.8 % B 6.4 (1) Calculated using the December 31, 2018 and 2017 one-month LIBOR rate of 2.503% and 1.564%, respectively, for floating rate securities. (2) Represents the WAL of each respective group of securities as of the respective balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. As of December 31, 2018, approximately $177.4 million, or 84.9%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.22%. As of December 31, 2017, approximately $207.0 million, or 83.8%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.22%. We purchased all of the RMBS at a discount, a portion of which will be accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of this accretable discount. The following table contains a reconciliation of aggregate principal balance to amortized cost for our RMBS as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, 2018 2017 Principal balance $ 309,497 $ 366,711 Accretable yield (54,779) (55,712) Non-accretable difference (99,154) (121,867) Total discount (153,933) (177,579) Amortized cost $ 155,564 $ 189,132 The principal balance of credit deteriorated RMBS was $290.8 million and $345.5 million as of December 31, 2018 and 2017, respectively. Accretable yield related to these securities totaled $49.5 million and $49.2 million as of December 31, 2018 and 2017, respectively. The following table discloses the changes to accretable yield and non‑accretable difference for our RMBS during the years ended December 31, 2018 and 2017 (amounts in thousands): Non-Accretable Accretable Yield Difference Balance as of January 1, 2017 $ 64,290 $ 126,607 Accretion of discount (13,457) — Principal write-downs, net — (5,004) Purchases 311 4,723 Sales — — OTTI 109 — Transfer to/from non-accretable difference 4,459 (4,459) Balance as of December 31, 2017 55,712 121,867 Accretion of discount (10,932) — Principal write-downs, net — (3,682) Purchases — — Sales (9,032) — OTTI — — Transfer to/from non-accretable difference 19,031 (19,031) Balance as of December 31, 2018 $ 54,779 $ 99,154 We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $1.8 million, $1.9 million and $1.8 million for the years ended December 31, 2018, 2017 and 2016, respectively, which has been recorded as management fees in the accompanying consolidated statements of operations. During the year ended December 31, 2018, we sold RMBS for proceeds of $13.3 million and realized gross gains of $3.5 million using the specific identification cost method. There were no sales of RMBS during the years ended December 31, 2017 and 2016. The following table presents the gross unrealized losses and estimated fair value of any available‑for‑sale securities that were in an unrealized loss position as of December 31, 2018 and 2017, and for which OTTIs (full or partial) have not been recognized in earnings (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a loss less than loss greater than loss less than loss greater than 12 months 12 months 12 months 12 months As of December 31, 2018 RMBS $ 2,148 $ — $ (31) $ — As of December 31, 2017 RMBS $ 10,321 $ 643 $ (99) $ (23) As of December 31, 2018 and 2017, there were one and three securities, respectively, with unrealized losses reflected in the table above. After evaluating these securities and recording adjustments for credit-related OTTI, we concluded that the remaining unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, which represent most of the OTTI we record on securities, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or impairments could be materially different from what is currently projected and/or reported. CMBS and RMBS, Fair Value Option As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for certain CMBS and RMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of December 31, 2018, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.2 billion and $3.0 billion, respectively. As of December 31, 2018, the fair value and unpaid principal balance of RMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $87.9 million and $62.4 million, respectively. The $1.2 billion total fair value balance of CMBS and RMBS represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $41.3 million at December 31, 2018) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities. As of December 31, 2018, $158.7 million of our CMBS were variable rate and none of our RMBS were variable rate. HTM Debt Securities, Amortized Cost The table below summarizes unrealized gains and losses of our investments in HTM debt securities as of December 31, 2018 and 2017 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value December 31, 2018 CMBS $ 408,556 $ 2,435 $ (3,349) $ 407,642 Infrastructure bonds 60,768 178 (168) 60,778 Preferred interests 174,825 703 — 175,528 Total $ 644,149 $ 3,316 $ (3,517) $ 643,948 December 31, 2017 CMBS $ $ 2,002 $ (7,779) $ 407,333 Preferred interests 20,358 647 — 21,005 Total $ 433,468 $ 2,649 $ (7,779) $ 428,338 The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2018 (amounts in thousands): Infrastructure Preferred CMBS Bonds Interests Total Less than one year $ 75,313 $ — $ — $ 75,313 One to three years 305,642 12,889 — 318,531 Three to five years 27,601 — 174,825 202,426 Thereafter — 47,879 — 47,879 Total $ 408,556 $ 60,768 $ 174,825 $ 644,149 Equity Security, Fair Value Option During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. The fair value of the investment remeasured in USD was $11.9 million and $13.5 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, our shares represent an approximate 2% interest in SEREF. |
Properties
Properties | 12 Months Ended |
Dec. 31, 2018 | |
Properties | |
Properties | 7. Propertie Our properties are held within the following portfolios: Ireland Portfolio The Ireland Portfolio is comprised of 11 net leased fully occupied office properties and one multifamily property all located in Dublin, Ireland, which the Company acquired during the year ended December 31, 2015. The Ireland Portfolio, which collectively is comprised of approximately 600,000 square feet, includes total gross properties and lease intangibles of $521.5 million and debt of $361.1 million as of December 31, 2018. Woodstar I Portfolio The Woodstar I Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar I Portfolio with the final 14 communities acquired during the year ended December 31, 2016. The Woodstar I Portfolio includes total gross properties and lease intangibles of $623.5 million and federal, state and county sponsored financing and other debt of $407.3 million as of December 31, 2018. Woodstar II Portfolio The Woodstar II Portfolio is comprised of 27 affordable housing communities with 6,109 units concentrated primarily in Central and South Florida. The Woodstar II Portfolio includes total gross properties and lease intangibles of $598.6 million and debt of $437.4 million as of December 31, 2018. Refer to Note 3 for further discussion of the Woodstar II Portfolio. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $760.5 million and debt of $486.3 million as of December 31, 2018. Master Lease Portfolio The Master Lease Portfolio is comprised of 16 retail properties geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Florida, Texas and Minnesota. These properties collectively comprise 1.9 million square feet and were leased back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. The Master Lease Portfolio includes total gross properties of $343.8 million and debt of $192.1 million as of December 31, 2018. Investing and Servicing Segment Property Portfolio The REIS Equity Portfolio is comprised of 19 commercial real estate properties and one equity interest in an unconsolidated commercial real estate property. The REIS Equity Portfolio includes total gross properties and lease intangibles of $350.9 million and debt of $231.0 million as of December 31, 2018. Refer to Note 3 for further discussion of the REIS Equity Portfolio. The table below summarizes our properties held as of December 31, 2018 and December 31, 2017 (dollars in thousands): December 31, Depreciable Life 2018 2017 Property Segment Land and land improvements 0 – 15 years $ 648,972 $ 585,915 Buildings and building improvements 5 – 45 years 1,980,283 Furniture & fixtures 3 – 7 years 46,048 31,028 Investing and Servicing Segment Land and land improvements 0 – 15 years 82,332 86,711 Buildings and building improvements 3 – 40 years 213,010 212,094 Furniture & fixtures 2 – 5 years 2,158 1,036 Properties, cost 2,972,803 Less: accumulated depreciation (187,913) (107,569) Properties, net $ 2,784,890 $ During the years ended December 31, 2018 and 2017, we sold 16 and six operating properties, respectively, for $313.3 million and $56.4 million, respectively, which resulted in gains of $55.1 million and $19.9 million, respectively, recognized within gain on sale of investments and other assets in our consolidated statements of operations. One of these properties sold in March 2018 was acquired by a third party which already held a $0.3 million non-controlling interest in the property. During the years ended December 31, 2018 and 2017, $5.1 million and $3.3 million, respectively, of such gains were attributable to non-controlling interests. There were no properties sold during the year ended December 31, 2016. Future rental payments due to us from tenants under existing non-cancellable operating leases for each of the next five years and thereafter are as follows (in thousands): 2019 $ 211,718 2020 129,825 2021 123,474 2022 113,393 2023 94,771 Thereafter 826,278 Total $ 1,499,459 |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2018 | |
Investment in Unconsolidated Entities | |
Investment in Unconsolidated Entities | 8. Investment in Unconsolidated Entitie The table below summarizes our investments in unconsolidated entities as of December 31, 2018 and 2017 (dollars in thousands): Participation / Carrying value as of December 31, Ownership % (1) 2018 2017 Equity method: Retail Fund (see Note 16) 33% $ 114,362 $ 110,704 Investor entity which owns equity in an online real estate company 50% 9,372 9,312 Equity interests in commercial real estate 50% 6,294 (2) 23,192 Equity interest in and advances to a residential mortgage originator N/A 9,082 (3) 7,742 Various 25% - 50% 6,984 3,538 146,094 154,488 Cost method: Equity interest in a servicing and advisory business 6% 6,207 12,234 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 3% 10,239 9,556 25,671 31,015 $ 171,765 $ 185,503 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) In March 2018, our preferred equity investment in a portfolio of student housing properties was redeemed in full for cash proceeds of $16.7 million. (3) Includes a $2.0 million subordinated loan the Company funded in June 2018. Refer to Note 16 for further discussion. As of December 31, 2018, the carrying value of our equity investment in a residential mortgage originator exceeded the underlying equity in net assets of such investee by $1.6 million. This difference is the result of the Company recording its investment in the investee at its acquisition date fair value, which included certain non-amortizing intangible assets not recognized by the investee. Should the Company determine these intangible assets held by the investee are impaired, the Company will recognize such impairment loss through earnings from unconsolidated entities in our consolidated statement of operations, otherwise, such difference between the carrying value of our equity investment in the residential mortgage originator and the underlying equity in the net assets of the residential mortgage originator will continue to exist. During the year ended December 31, 2017, the Retail Fund, an investment company that measures its assets at fair value on a recurring basis, reported unrealized decreases in the fair value of its real estate properties as a result of lender appraisals obtained by the Retail Fund. We report our interest in the Retail Fund at its liquidation value, which resulted in a $34.7 million decrease to our investment. This amount was recognized within earnings from unconsolidated entities in our consolidated statement of operations during the year ended December 31, 2017. In September 2017, the investor entity which owns equity in an online real estate company sold approximately 88% of its interest in the online real estate company. In October 2017, we received a pre-tax cash distribution of $66.0 million from the investor entity related to the sale. During the year ended December 31, 2017, we recognized $53.9 million of income from our investment in this investor entity as a result of the sale within earnings from unconsolidated entities in our consolidated statement of operations. Other than our equity interest in the residential mortgage originator, there were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of December 31, 2018. During the year ended December 31, 2018, we did not become aware of any observable price changes in our cost method investments that are within the scope of ASU 2016-01 or any indicators of impairment. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangibles | |
Goodwill and Intangibles | 9. Goodwill and Intangibles Goodwill Infrastructure Lending Segment The Infrastructure Lending Segment’s goodwill of $119.4 million at December 31, 2018 represents the excess of consideration transferred over the fair value of net assets acquired on September 19, 2018 and October 15, 2018. The goodwill recognized is attributable to value embedded in the acquired Infrastructure Lending Segment’s origination platform and is fully tax deductible over 15 years. LNR Property LLC (“LNR”) The Investing and Servicing Segment’s goodwill of $140.4 million at both December 31, 2018 and 2017 represents the excess of consideration transferred over the fair value of net assets of LNR acquired on April 19, 2013. The goodwill recognized is attributable to value embedded in LNR’s existing platform, which includes a network of commercial real estate asset managers, work-out specialists, underwriters and administrative support professionals as well as proprietary historical performance data on commercial real estate assets. The tax deductible component of our goodwill as of April 19, 2013 was $149.9 million and is deductible over 15 years. As discussed in Note 2, goodwill is tested for impairment at least annually. Based on our qualitative assessment during the fourth quarter of 2018, we determined that it is not more likely than not that the fair value of the Investing and Servicing Segment reporting unit to which goodwill is attributed is less than its carrying value including goodwill. Therefore, we concluded that the goodwill attributed to the Investing and Servicing segment was not impaired. The first annual goodwill impairment test for the recently-acquired Infrastructure Lending Segment will occur in the fourth quarter of 2019. Intangible Assets Servicing Rights Intangibles In connection with the LNR acquisition, we identified domestic servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. At December 31, 2018 and 2017, the balance of the domestic servicing intangible was net of $24.1 million and $28.2 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of December 31, 2018 and 2017, the domestic servicing intangible had a balance of $44.6 million and $59.0 million, respectively, which represents our economic interest in this asset. Lease Intangibles In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties. The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, 2018 As of December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 20,557 $ — $ 20,557 $ 30,759 $ — $ 30,759 In-place lease intangible assets 198,220 (100,873) 97,347 187,816 (65,351) 122,465 Favorable lease intangible assets 36,895 (9,766) 27,129 37,231 (7,363) 29,868 Total net intangible assets $ 255,672 $ (110,639) $ 145,033 $ 255,806 $ (72,714) $ 183,092 The following table summarizes the activity within intangible assets for the years ended December 31, 2018 and 2017 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2017 $ 55,082 136,877 27,289 219,248 Acquisition of Woodstar II Portfolio properties — 4,155 — 4,155 Acquisition of additional REIS Equity Portfolio properties — 6,524 5,431 11,955 Amortization — (26,850) (3,930) (30,780) Sales — (722) (109) (831) Foreign exchange gain — 4,404 1,177 5,581 Impairment (1) — (1,014) (9) (1,023) Changes in fair value due to changes in inputs and assumptions (24,323) — — (24,323) Measurement period adjustments — (909) 19 (890) Balance as of December 31, 2017 30,759 $ 122,465 $ 29,868 183,092 Acquisition of additional Woodstar II Portfolio properties — 10,792 — 10,792 Acquisition of additional REIS Equity Portfolio properties — 7,342 2,687 10,029 Amortization — (39,830) (4,046) (43,876) Sales — (1,791) (1,036) (2,827) Foreign exchange loss — (1,270) (344) (1,614) Impairment (1) — (361) — (361) Changes in fair value due to changes in inputs and assumptions (10,202) — — (10,202) Balance as of December 31, 2018 $ 20,557 $ 97,347 $ 27,129 $ 145,033 (1) Impairment of intangible lease assets is recognized within other expense in our consolidated statements of operations. The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2019 $ 23,250 2020 17,491 2021 15,047 2022 12,241 2023 8,996 Thereafter 47,451 Total $ 124,476 Lease Liabilities In connection with our acquisition of certain properties within our Medical Office Portfolio, we recognized aggregate unfavorable lease liabilities of $4.8 million with a weighted average life of 9.7 years at acquisition. The liability balance was $2.9 million and $3.7 million as of December 31, 2018 and 2017, respectively. In connection with our acquisition of LNR in 2013, we recognized an unfavorable lease liability of $15.3 million related to an assumed operating lease for our offices in Miami Beach, Florida, which expires in 2021. This liability is being amortized over the remaining three years of the underlying lease term at a rate of approximately $1.9 million per year. The liability balance was $4.7 million and $6.5 million as of December 31, 2018 and 2017, respectively. |
Secured Financing Agreements
Secured Financing Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Secured financing agreements | |
Secured Financing Agreements | |
Secured Financing Agreements | 10. Secured Financing Agreement The following table is a summary of our secured financing agreements in place as of December 31, 2018 and 2017 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum December 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2018 2017 Lender 1 Repo 1 (b) (b) LIBOR + 1.60% to 5.75% $ 1,678,448 $ 2,000,000 $ 1,279,979 $ 1,137,654 Lender 2 Repo 1 Apr 2020 Apr 2023 LIBOR + 1.50% to 2.50% 542,255 900,000 (c) 384,791 238,428 Lender 3 Repo 1 N/A N/A N/A — — — 75,291 Lender 4 Repo 2 May 2021 May 2023 LIBOR + 2.00% to 3.25% 1,141,153 1,000,000 552,345 215,372 Lender 6 Repo 1 Aug 2021 N/A LIBOR + 2.00% to 2.75% 655,536 600,000 507,545 494,353 Lender 6 Repo 2 Oct 2022 Oct 2023 GBP LIBOR + 2.75%, EURIBOR + 2.25% 386,670 422,090 312,437 332,815 Lender 7 Repo 1 Sep 2021 Sep 2023 LIBOR + 1.75% to 2.25% 89,038 250,000 71,720 — Lender 9 Repo 1 N/A N/A N/A — — — 65,762 Lender 10 Repo 1 May 2021 May 2023 LIBOR + 1.50% to 2.75% 200,440 164,840 160,480 77,800 Lender 11 Repo 1 Jun 2019 Jun 2020 LIBOR + 2.10% — 200,000 — — Lender 11 Repo 2 Sep 2019 Sep 2023 LIBOR + 2.00% to 2.50% 355,606 500,000 270,690 — Lender 12 Repo 1 Jun 2021 Jun 2024 LIBOR + 2.10% to 2.45% 57,368 250,000 43,500 — Lender 13 Repo 1 (d) (d) LIBOR + 1.50% 18,425 200,000 14,824 — Lender 7 Secured Financing Feb 2021 Feb 2023 LIBOR + 2.25% (e) 93,085 650,000 (f) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% — — — 15,617 Conduit Repo 2 Nov 2019 Nov 2020 LIBOR + 2.25% 47,622 200,000 35,034 40,075 Conduit Repo 3 Feb 2020 Feb 2021 LIBOR + 2.10% — 150,000 — 26,895 MBS Repo 1 (g) (g) N/A — — — 6,510 MBS Repo 2 Dec 2020 N/A LIBOR + 1.55% to 1.75% 222,333 159,202 159,202 222,672 MBS Repo 3 (h) (h) LIBOR + 1.30% to 1.85% 691,963 427,942 427,942 224,150 MBS Repo 4 (i) N/A LIBOR + 1.70% 155,063 110,000 13,824 77,318 MBS Repo 5 Dec 2028 Jun 2029 4.21% 57,619 150,000 55,437 — Investing and Servicing Segment Property Mortgages May 2020 to N/A Various 263,725 242,499 219,237 177,411 Ireland Mortgage Oct 2025 N/A 1.93% 460,581 362,854 362,854 349,900 Woodstar I Mortgages Nov 2025 to N/A 3.72% to 3.97% 346,402 276,748 276,748 276,748 Woodstar I Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 195,903 131,179 131,179 133,418 Woodstar II Mortgages Jan 2028 to Apr 2028 N/A 3.81% to 3.85% 530,299 417,669 417,669 116,745 Woodstar II Government Financing Jun 2030 to Aug 2052 N/A 1.00% to 3.19% 39,126 25,311 25,311 — Medical Office Mortgages Dec 2021 Dec 2023 LIBOR + 2.50% 680,335 524,499 492,828 497,613 Master Lease Mortgages Oct 2027 N/A 4.38% 333,107 194,900 194,900 265,900 Infrastructure Lending Facility Sep 2021 Sep 2022 Various 1,905,469 2,020,971 1,551,148 — Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (e) 912,857 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (e) — 100,000 — — FHLB Feb 2021 N/A Various 623,660 500,000 500,000 445,000 $ 12,684,088 $ 13,430,704 8,761,624 5,813,447 Unamortized net (discount) premium (963) 2,559 Unamortized deferred financing costs (77,096) (42,950) $ 8,683,565 $ 5,773,056 (a) Subject to certain conditions as defined in the respective facility agreement. (b) Maturity date for borrowings collateralized by loans is September 2019 with an additional extension option to September 2021. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed September 2025. (c) The initial maximum facility size of $600.0 million may be increased to $900.0 million, subject to certain conditions. (d) Maturity date for borrowings collateralized by loans is May 2020 with an additional extension option to August 2021. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (e) Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. (f) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (g) Facility carries a rolling 11-month term which may reset monthly with the lender’s consent. This facility carries no maximum facility size. (h) Facility carries a rolling 12-month term which may reset monthly with the lender’s consent. Current maturity is December 2019. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of December 31, 2018. (i) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2020. In the normal course of business, the Company is in discussions with its lenders to extend or amend any financing facilities which contain near term expirations. During the year ended December 31, 2018, we entered into three mortgage loans with aggregate maximum borrowings of $55.8 million to finance commercial real estate previously acquired by our Investing and Servicing Segment. As of December 31, 2018, these facilities carry a remaining weighted average term of 4.0 years with floating annual interest rates of LIBOR + 2.58%. During the year ended December 31, 2018, we entered into mortgage loans with total borrowings of $300.9 million to finance the 2018 Closing of our Woodstar II Portfolio. The loans carry 10-year terms and weighted average fixed annual interest rates of 3.82%. Additional government sponsored mortgage loans of $27.0 million with weighted average fixed annual interest rates of 3.06% and remaining weighted average terms of 27.5 years were assumed in connection with the 2018 Closing of our Woodstar II Portfolio. In April 2018, we amended the Lender 2 Repo 1 facility to extend the current maturity from October 2018 to April 2020 with three one-year extension options and allow for the option to upsize to $900.0 million, subject to certain conditions. In June 2018, we entered into a $150.0 million repurchase facility (“MBS Repo 5”) to finance vertical risk retention CMBS investments within our Investing and Servicing Segment. The facility carries a ten-year initial term with a six-month extension option. In June 2018, we entered into a $250.0 million repurchase facility (“Lender 12 Repo 1”) to finance certain loans held-for-investment. The facility carries a three-year initial term with three one-year extension options and an annual interest rate of LIBOR + 2.10% to 2.45%, subject to a 25 basis point floor. In August 2018, we entered into a $200.0 million repurchase facility (“Lender 13 Repo 1”) to finance certain loans held-for-investment. The facility has a maturity date of May 2020 with an additional extension option to August 2021 and an annual interest rate of LIBOR + 1.50%. In August and September 2018, we amended the Lender 11 Repo 2 facility to increase available borrowings from $250.0 million to $500.0 million, extend the current maturity from September 2018 to September 2019 with four one-year extension options and decrease the pricing margin from LIBOR + 2.25% to 2.75% to LIBOR + 2.00% to 2.50%. In September 2018, we exercised an option to upsize the Lender 4 Repo 2 facility from $600.0 million to $1.0 billion. In September 2018, we entered into a $250.0 million repurchase facility (“Lender 7 Repo 1”) to finance certain loans held-for-investment. The facility carries a three-year initial term with two one-year extension options and an annual interest rate of LIBOR + 1.75% to 2.25%. In September 2018, we entered into a credit agreement to fund the acquisition and unfunded loan commitments associated with the Infrastructure Lending Segment (the “Infrastructure Lending Facility”), which consists of the following components: (i) a $1.5 billion term loan for fully funded loans; (ii) a $334.0 million delayed draw term loan for future fundings on acquired term loans; and (iii) a $286.9 million revolver for future fundings on acquired revolvers and letters of credit (“LCs”). Each component carries a three-year initial term with a one-year extension option and an annual interest rate of the applicable currency benchmark index + 1.50%. The spread increases 25 bps in each of the second and third years of the facility. The facility also contains commitment fees, including fees paid at inception and ongoing fees associated with unfunded commitments on delayed draw term loans, revolvers and LCs. As of December 31, 2018, the following components were outstanding: (i) $1.5 billion of term loans; and (ii) $23.5 million of revolvers. In October 2018, we refinanced the Ireland Mortgage with a new seven-year, fixed 1.93% annual interest rate mortgage loan. We recognized a loss on extinguishment of debt of $1.8 million in our consolidated statement of operations in connection with this refinancing. Our secured financing agreements contain certain financial tests and covenants. As of December 31, 2018, we were in compliance with all such covenants. The following table sets forth our five‑year principal repayments schedule for secured financings assuming no defaults and excluding loans transferred as secured borrowings. Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands): Repurchase Other Secured Agreements Financing Total 2019 $ 565,219 $ 268,813 $ 834,032 2020 483,962 753,710 1,237,672 2021 776,519 843,872 1,620,391 2022 784,940 940,360 1,725,300 2023 1,546,055 564,789 2,110,844 Thereafter 133,055 1,100,330 1,233,385 Total $ 4,289,750 $ 4,471,874 $ 8,761,624 For the years ended December 31, 2018, 2017 and 2016, approximately $27.0 million, $19.5 million and $16.2 million, respectively, of amortization of deferred financing costs from secured financing agreements were included in interest expense on our consolidated statements of operations. In addition, during the year ended December 31, 2016, we wrote off $8.2 million of deferred financing costs and unamortized discount which are included within loss on extinguishment of debt in our consolidated statement of operations. This $8.2 million write-off was in connection with the repayment of our former term loan in December 2016. The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, Class of Collateral 2018 2017 Loans held-for-investment $ 3,567,786 $ 2,637,475 Loans held-for-sale 65,559 66,970 Investment securities 656,405 530,650 $ 4,289,750 $ 3,235,095 We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 72% of these agreements, do not permit valuation adjustments based on capital markets activity. Instead, margin calls on these facilities are limited to collateral-specific credit marks. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For repurchase agreements containing margin call provisions for general capital markets activity, approximately 26% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreements. |
Unsecured Senior Notes
Unsecured Senior Notes | 12 Months Ended |
Dec. 31, 2018 | |
Convertible Senior Notes | |
Unsecured Senior Notes | |
Unsecured Senior Notes | 11. Unsecured Senior Notes The following table is a summary of our unsecured senior notes outstanding as of December 31, 2018 and 2017 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2018 2017 2018 Convertible Notes N/A N/A N/A N/A — 369,981 2019 Convertible Notes 4.00 % 5.04 % 1/15/2019 years 77,969 341,363 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 years 500,000 — 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 years 500,000 500,000 Total principal amount 2,027,969 2,161,344 Unamortized discount—Convertible Notes (4,644) (11,186) Unamortized discount—Senior Notes (16,416) (16,654) Unamortized deferred financing costs (8,078) (8,269) Carrying amount of debt components $ 1,998,831 $ 2,125,235 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes $ 3,755 $ 31,638 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible senior notes, the value of which reduced the initial liability and was recorded in additional paid‑in‑capital. Senior Notes Due February 2021 On January 29, 2018, we issued $500.0 million of 3.625% Senior Notes due 2021 (the “2021 February Notes”). The 2021 February Notes mature on February 1, 2021. Prior to November 1, 2020, we may redeem some or all of the 2021 February Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after November 1, 2020, we may redeem some or all of the 2021 February Notes at a price equal to 100% of the principal amount thereof. In addition, prior to February 1, 2020, we may redeem up to 40% of the 2021 February Notes at the applicable redemption price using the proceeds of certain equity offerings. The 2021 February Notes were swapped to floating rate (see Note 13). Senior Notes Due December 2021 On December 16, 2016, we issued $700.0 million of 5.00% Senior Notes due 2021 (the “2021 December Notes”). The 2021 December Notes mature on December 15, 2021. Prior to September 15, 2021, we may redeem some or all of the 2021 December Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 15, 2021, we may redeem some or all of the 2021 December Notes at a price equal to 100% of the principal amount thereof. In addition, prior to December 15, 2019, we may redeem up to 35% of the 2021 December Notes at the applicable redemption price using the proceeds of certain equity offerings. Senior Notes Due 2025 On December 4, 2017, we issued $500.0 million of 4.75% Senior Notes due 2025 (the “2025 Notes”). The 2025 Notes mature on March 15, 2025. Prior to September 15, 2024, we may redeem some or all of the 2025 Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 15, 2024, we may redeem some or all of the 2025 Notes at a price equal to 100% of the principal amount thereof. In addition, prior to March 15, 2021, we may redeem up to 40% of the 2025 Notes at the applicable redemption price using the proceeds of certain equity offerings. Convertible Senior Notes On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Notes”). On October 8, 2014, we issued $431.3 million of 3.75% Convertible Senior Notes due 2017 (the “2017 Notes”). On February 15, 2013, we issued $600.0 million of 4.55% Convertible Senior Notes due 2018 (the “2018 Notes”). On July 3, 2013, we issued $460.0 million of 4.00% Convertible Senior Notes due 2019 (the “2019 Notes”). In October 2017, we repaid the full outstanding principal amount of the 2017 Notes in cash upon their maturity. In March 2018, we repaid the full outstanding principal amount of the 2018 Notes in cash upon their maturity. We recognized interest expense of $28.9 million, $72.2 million and $57.1 million during the years ended December 31, 2018, 2017 and 2016, respectively, from our unsecured convertible senior notes (collectively, the “Convertible Notes”). During the year ended December 31, 2018, we received and settled redemption notices related to the 2019 Notes with a par amount totaling $263.4 million. Total consideration of $296.8 million was paid via the issuance of 12.4 million shares and cash payments of $25.5 million. The $264.4 million of settlement consideration attributable to the liability component of the 2019 Notes exceeded the proportionate net carrying amount of the liability component by $2.1 million, which was recognized as a loss on extinguishment of debt in our consolidated statement of operations for the year ended December 31, 2018. The $32.4 million of settlement consideration attributable to the equity component of the 2019 Notes was recognized as a reduction of additional paid-in capital in our consolidated statement of equity for the year ended December 31, 2018, partially offsetting the $271.2 million fair value of the shares issued. Subsequent to December 31, 2018, the remaining $78.0 million of the 2019 Notes were settled through the issuance of 3.6 million shares and cash payments of $12.0 million. On March 29, 2017, the proceeds from the issuance of the 2023 Notes were used to repurchase $230.0 million of the 2018 Notes for $250.7 million. The repurchase price was allocated between the fair value of the liability component and the fair value of the equity component of the 2018 Notes at the repurchase date. The portion of the repurchase price attributable to the equity component totaled $18.1 million and was recognized as a reduction of additional paid-in capital during the year ended December 31, 2017. The portion of the repurchase price attributable to the liability component exceeded the net carrying amount of the liability component by $5.9 million, which was recognized as a loss on extinguishment of debt in our consolidated statement of operations for the year ended December 31, 2017. The repurchase of the 2018 Notes was not considered part of the repurchase program approved by our board of directors (refer to Note 17) and therefore did not reduce our available capacity for future repurchases under the repurchase program. Under the repurchase program approved by our board of directors, we repurchased $19.4 million aggregate principal amount of our 2017 Notes during the year ended December 31, 2016 for $19.9 million. The repurchase price was allocated between the fair value of the liability component and the fair value of the equity component of the convertible security. The portion of the repurchase price attributable to the equity component totaled $0.4 million and was recognized as a reduction of additional paid-in capital during the year ended December 31, 2016. The remaining repurchase price was attributable to the liability component. The difference between this amount and the net carrying amount of the liability and debt issuance costs was reflected as a loss on extinguishment of debt in our consolidated statement of operations. For the year ended December 31, 2016, the loss on extinguishment of debt totaled $0.6 million, consisting principally of the write-off of unamortized debt discount. The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2018 (amounts in thousands, except rates): December 31, 2018 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2018 2017 2016 2018 Notes N/A N/A — 541 1,097 2019 Notes 52.0131 $ 19.23 91 1,358 1,600 2023 Notes 38.5959 $ 25.91 — — — 91 1,899 2,697 (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of Convertible Notes converted, as adjusted in accordance with the indentures governing the Convertible Notes (including the applicable supplemental indentures). (2) As of December 31, 2018, 2017 and 2016, the market price of the Company’s common stock was $19.71, $21.35 and $21.95 per share, respectively. (3) The conversion spread value represents the portion of the Convertible Notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion. The if-converted value of the 2019 Notes exceeded their principal amount by $2.0 million at December 31, 2018 as the closing market price of the Company’s common stock of $19.71 per share exceeded the implicit conversion price of $19.23 per share. However, the if‑converted value of the 2023 Notes was less than their principal amount by $59.8 million at December 31, 2018 as the closing market price of the Company’s common stock was less than the implicit conversion price of $25.91 per share. Effective June 30, 2018, the Company no longer asserts its intent to fully settle the principal amount of the Convertible Notes in cash upon conversion. The if-converted value of the principal amount of the 2019 Notes and 2023 Notes was $79.9 million and $190.2 million, respectively, as of December 31, 2018. Conditions for Conversion Prior to October 1, 2022, the 2023 Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is at least 110% of the conversion price of the 2023 Notes for at least 20 out of 30 trading days prior to the end of the preceding fiscal quarter, (2) the trading price of the 2023 Notes is less than 98% of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five consecutive trading day period, (3) the Company issues certain equity instruments at less than the 10‑day average closing market price of its common stock or the per‑share value of certain distributions exceeds the market price of the Company’s common stock by more than 10% or (4) certain other specified corporate events (significant consolidation, sale, merger, share exchange, fundamental change, etc.) occur. On or after October 1, 2022, holders of the 2023 Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. The 2019 Notes entered the open conversion period on July 15, 2018. |
Loan Securitization_Sale Activi
Loan Securitization/Sale Activities | 12 Months Ended |
Dec. 31, 2018 | |
Loan Securitization/Sale Activities | |
Loan Securitization/Sale Activities | 12. Loan Securitization/Sale Activitie As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control. Conduit Loan Securitizations Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. In certain instances, we retain an interest in the VIE and/or serve as special servicer for the VIE. In these instances, we generally consolidate the VIE into which the loans were sold. The following summarizes the fair value and par value of loans sold from our conduit platform, as well as the amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with these loans for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands): Repayment of repurchase Face Amount Proceeds agreements For the Year Ended December 31, 2018 $ 1,517,599 $ 1,563,433 $ 1,147,316 2017 1,517,368 1,582,050 1,152,938 2016 1,798,215 1,884,380 1,170,230 Securitization Financing Arrangements and Sales Within the Commercial and Residential Lending Segment, we originate or acquire residential and commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. These loans may be sold directly or through a securitization. In certain instances, we retain an interest in the VIE and continue to act as servicer, special servicer or servicing administrator for the loan following its sale. In these instances, similar to the case of our Investing and Servicing Segment described above, we generally consolidate the VIE into which the loans were sold. During the year ended December 31, 2018, we consolidated two securitization VIEs into which our residential loans were sold, along with two securitization VIEs into which our commercial loans were sold. In each of these instances, we retained an interest in the VIE. The following table summarizes our loans sold and loans transferred as secured borrowings by the Commercial and Residential Lending Segment net of expenses (amounts in thousands): Loan Transfers Loan Transfers Accounted for as Sales Accounted for as Secured Commercial Residential Borrowings For the Year Ended December 31, Face Amount Proceeds Face Amount Proceeds Face Amount Proceeds 2018 $ 840,400 $ 835,849 $ 660,865 $ 683,556 $ — $ — 2017 55,470 52,609 — — 75,000 74,098 2016 386,389 382,881 — — — — During the year ended December 31, 2018, a net gain of $1.3 million was recognized within change in fair value of mortgage loans held-for-sale, net in our consolidated statement of operations in connection with residential mortgage loan securitizations. During the years ended December 31, 2018, 2017 and 2016, gains (losses) recognized by the Commercial and Residential Lending Segment on sales of commercial loans were not material. Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 12 Months Ended |
Dec. 31, 2018 | |
Derivatives and Hedging Activity | |
Derivatives and Hedging Activity | 13. Derivatives and Hedging Activit Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, foreign exchange, liquidity and credit risk primarily by managing the amount, sources and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates, credit spreads, and foreign exchange rates. Our derivative financial instruments are used to manage differences in the amount, timing and duration of the known or expected cash receipts and known or expected cash payments principally related to our investments, anticipated level of loan sales, and borrowings. Designated Hedges The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of December 31, 2018, the Company did not have any designated hedges. As of December 31, 2017, the Company had two interest rate swaps that had been designated as cash flow hedges of the interest rate risk associated with forecasted interest payments. As of December 31, 2017, the fair value of our cash flow hedges was not material. Additionally, during the years ended December 31, 2018, 2017 and 2016 the impact of cash flow hedges on our net income was not material, and we did not recognize any hedge ineffectiveness in earnings associated with these cash flow hedges. Non‑designated Hedges and Derivatives Derivatives not designated as hedges are derivatives that do not meet the criteria for hedge accounting under GAAP or which we have not elected to designate as hedges. We do not use these derivatives for speculative purposes but instead they are used to manage our exposure to various risks such as foreign exchange rates, interest rate changes and certain credit spreads. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in gain (loss) on derivative financial instruments in our consolidated statements of operations. We have entered into the following types of non-designated hedges and derivatives: · Foreign exchange (“Fx”) forwards whereby we agree to buy or sell a specified amount of foreign currency for a specified amount of USD at a future date, economically fixing the USD amounts of foreign denominated cash flows we expect to receive or pay related to certain foreign denominated loan investments and properties; · Interest rate contracts, which hedge a portion of our exposure to changes in interest rates; · Credit index instruments, which hedge a portion of our exposure to the credit risk of our commercial loans held-for-sale; · Forward loan purchase commitments whereby we agree to buy a specified amount of residential mortgage loans at a future date for a specified price and the counterparty is contractually obligated to deliver such mortgage loans (see Note 22); and · Interest rate swap guarantees whereby we guarantee the interest rate swap obligations of certain Infrastructure Lending borrowers. Our interest rate swap guarantees were assumed in connection with the acquisition of the Infrastructure Lending Segment. The following table summarizes our non-designated derivatives as of December 31, 2018 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") 62 287,666 EUR January 2019 – October 2022 Fx contracts – Sell Pounds Sterling ("GBP") 147 239,772 GBP January 2019 – October 2022 Fx contracts – Sell Canadian dollar ("CAD") 16 9,055 CAD January 2019 – October 2022 Fx contracts – Sell Australian dollar ("AUD") 4 8,122 AUD January 2019 – October 2019 Interest rate swaps – Paying fixed rates 17 1,027,768 USD April 2019 – December 2028 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021 – March 2025 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 10 127,536 USD October 2019 – December 2021 Credit index instruments 3 24,000 USD November 2054 – September 2058 Forward loan purchase commitments 1 150,000 USD February 2019 Interest rate swap guarantees 10 685,271 USD March 2019 – June 2025 Interest rate swap guarantees 1 11,091 GBP December 2024 Interest rate swap guarantees 1 91,374 CAD June 2045 Total 276 The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2018 and 2017 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) in a Liability Position (2) as of December 31, as of December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ — $ 25 $ — $ — Total derivatives designated as hedging instruments — 25 — — Derivatives not designated as hedging instruments: Interest rate contracts 30,791 27,234 14,457 2,781 Interest rate swap guarantees — — 396 — Foreign exchange contracts 21,346 6,400 562 33,419 Credit index instruments 554 239 — — Total derivatives not designated as hedging instruments 52,691 33,873 15,415 36,200 Total derivatives $ 52,691 $ 33,898 $ 15,415 $ 36,200 (1) Classified as derivative assets in our consolidated balance sheets. (2) Classified as derivative liabilities in our consolidated balance sheets. The tables below present the effect of our derivative financial instruments on the consolidated statements of operations and of comprehensive income for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands): Gain (Loss) Gain (Loss) Reclassified Gain (Loss) Recognized from AOCI Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain (Loss) For the Year Ended December 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2018 $ 8 $ 33 $ — Interest expense 2017 $ 54 $ 3 $ — Interest expense 2016 $ (284) $ (323) $ — Interest expense Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Year Ended December 31, as Hedging Instruments Recognized in Income 2018 2017 2016 Interest rate contracts Gain (loss) on derivative financial instruments $ (1,593) $ (5,165) $ 21,741 Interest rate swap guarantees Gain (loss) on derivative financial instruments (114) — — Foreign exchange contracts Gain (loss) on derivative financial instruments 36,040 (65,645) 51,818 Credit index instruments Gain (loss) on derivative financial instruments 270 (1,722) (2,825) $ 34,603 $ (72,532) $ 70,734 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Offsetting Assets and Liabilities | |
Offsetting Assets and Liabilities | 14. Offsetting Assets and Liabilitie The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210‑20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (iv) Gross Amounts Not Offset in the Statement (ii) (iii) = (i) - (ii) of Financial Position Gross Amounts Net Amounts Cash (i) Offset in the Presented in Collateral Gross Amounts Statement of the Statement of Financial Received / (v) = (iii) - (iv) Recognized Financial Position Financial Position Instruments Pledged Net Amount As of December 31, 2018 Derivative assets $ 52,691 $ — $ 52,691 $ 1,408 $ — $ 51,283 Derivative liabilities $ 15,415 $ — $ 15,415 $ 1,408 $ 8,658 $ 5,349 Repurchase agreements 4,289,750 — 4,289,750 4,289,750 — — $ 4,305,165 $ — $ 4,305,165 $ 4,291,158 $ 8,658 $ 5,349 As of December 31, 2017 Derivative assets $ 33,898 $ — $ 33,898 $ 6,523 $ — $ 27,375 Derivative liabilities $ 36,200 $ — $ 36,200 $ 6,523 $ 15,333 $ 14,344 Repurchase agreements 3,235,095 — 3,235,095 3,235,095 — — $ 3,271,295 $ — $ 3,271,295 $ 3,241,618 $ 15,333 $ 14,344 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities | |
Variable Interest Entities | 15. Variable Interest Entitie Investment Securities As discussed in Note 2, we evaluate all of our investments and other interests in entities for consolidation, including our investments in CMBS, RMBS and our retained interests in securitization transactions we initiated, all of which are generally considered to be variable interests in VIEs. Securitization VIEs consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to us as the primary beneficiary. The VIE liabilities initially represent investment securities on our balance sheet (pre‑consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. VIEs in which we are the Primary Beneficiary The inclusion of the assets and liabilities of securitization VIEs in which we are deemed the primary beneficiary has no economic effect on us. Our exposure to the obligations of securitization VIEs is generally limited to our investment in these entities. We are not obligated to provide, nor have we provided, any financial support for any of these consolidated structures. We also hold controlling interests in non-securitization entities that are considered VIEs, most of which were established to facilitate the acquisition of certain properties. SPT Dolphin, the entity which holds the Woodstar II Portfolio, is a VIE because the third party interest holders do not carry kick-out rights or substantive participating rights. We were deemed to be the primary beneficiary of the VIE because we possess both the power to direct the activities of the VIE that most significantly impact its economic performance and a significant economic interest in the entity. This VIE had net assets of $695.0 million and liabilities of $443.6 million as of December 31, 2018. In total, our consolidated non-securitization VIEs had assets of $798.2 million and liabilities of $524.6 million as of December 31, 2018. VIEs in which we are not the Primary Beneficiary In certain instances, we hold a variable interest in a VIE in the form of CMBS, but either (i) we are not appointed, or do not serve as, special servicer or servicing administrator or (ii) an unrelated third party has the rights to unilaterally remove us as special servicer without cause. In these instances, we do not have the power to direct activities that most significantly impact the VIE’s economic performance. In other cases, the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant. For these structures, we are not deemed to be the primary beneficiary of the VIE, and we do not consolidate these VIEs. As of December 31, 2018, three of our collateralized debt obligation (“CDO”) structures were in default or imminent default, which, pursuant to the underlying indentures, changes the rights of the variable interest holders. Upon default of a CDO, the trustee or senior note holders are allowed to exercise certain rights, including liquidation of the collateral, which at that time, is the activity which would most significantly impact the CDO’s economic performance. Further, when the CDO is in default, the collateral administrator no longer has the option to purchase securities from the CDO. In cases where the CDO is in default and we do not have the ability to exercise rights which would most significantly impact the CDO’s economic performance, we do not consolidate the VIE. As of December 31, 2018, none of these CDO structures were consolidated. As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of December 31, 2018, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $41.3 million on a fair value basis. As of December 31, 2018, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances, excluding the notional value of interest-only securities, of $6.9 billion. The corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations. We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $18.3 million as of December 31, 2018, within investment in unconsolidated entities on our consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related-Party Transactions | |
Related-Party Transactions | 16. Related‑Party Transaction Management Agreement We are party to a management agreement (the “Management Agreement”) with our Manager. Under the Management Agreement, our Manager, subject to the oversight of our board of directors, is required to manage our day to day activities, for which our Manager receives a base management fee and is eligible for an incentive fee and stock awards. Our Manager’s personnel perform certain due diligence, legal, management and other services that outside professionals or consultants would otherwise perform. As such, in accordance with the terms of our Management Agreement, our Manager is paid or reimbursed for the documented costs of performing such tasks, provided that such costs and reimbursements are in amounts no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. In February 2018, our board of directors authorized an amendment to our Management Agreement to adjust the calculation of the base management fee and incentive fee to treat equity securities of subsidiaries issued in exchange for properties as issued common stock, effective December 28, 2017 (the “Amendment”). The terms of the Amendment are reflected in the below descriptions of the base management fee and incentive fee calculations. Base Management Fee . The base management fee is 1.5% of our stockholders’ equity per annum and calculated and payable quarterly in arrears in cash. For purposes of calculating the management fee, our stockholders’ equity means: (a) the sum of (1) the net proceeds from all issuances of our equity securities since inception and equity securities of subsidiaries issued in exchange for properties (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (2) our retained earnings and income to non-controlling interests with respect to equity securities of subsidiaries issued in exchange for properties at the end of the most recently completed calendar quarter (without taking into account any non‑cash equity compensation expense incurred in current or prior periods), less (b) any amount that we pay to repurchase our common stock since inception. It also excludes (1) any unrealized gains and losses and other non‑cash items that have impacted stockholders’ equity as reported in our financial statements prepared in accordance with GAAP, and (2) one‑time events pursuant to changes in GAAP, and certain non‑cash items not otherwise described above, in each case after discussions between our Manager and our independent directors and approval by a majority of our independent directors. As a result, our stockholders’ equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders’ equity shown in our consolidated financial statements. For the years ended December 31, 2018, 2017 and 2016, approximately $73.2 million, $67.8 million and $61.0 million, respectively, was incurred for base management fees. As of December 31, 2018 and 2017, there were $19.2 million and $17.1 million, respectively, of unpaid base management fees included in related-party payable in our consolidated balance sheets. Incentive Fee . Our Manager is entitled to be paid the incentive fee described below with respect to each calendar quarter if (1) our Core Earnings (as defined below) for the previous 12‑month period exceeds an 8% threshold, and (2) our Core Earnings for the 12 most recently completed calendar quarters is greater than zero. The incentive fee is calculated as follows: an amount, not less than zero, equal to the difference between (1) the product of (x) 20% and (y) the difference between (i) our Core Earnings for the previous 12‑month period, and (ii) the product of (A) the weighted average of the issue price per share of our common stock of all of our public offerings and including issue price per equity security of subsidiaries issued in exchange for properties multiplied by the weighted average number of all shares of common stock outstanding (including any RSUs, any RSAs and other shares of common stock underlying awards granted under our equity incentive plans) and equity securities of subsidiaries issued in exchange for properties in such previous 12‑month period, and (B) 8%, and (2) the sum of any incentive fee paid to our Manager with respect to the first three calendar quarters of such previous 12‑month period. One half of each quarterly installment of the incentive fee is payable in shares of our common stock so long as the ownership of such additional number of shares by our Manager would not violate the 9.8% stock ownership limit set forth in our charter, after giving effect to any waiver from such limit that our board of directors may grant in the future. The remainder of the incentive fee is payable in cash. The number of shares to be issued to our Manager is equal to the dollar amount of the portion of the quarterly installment of the incentive fee payable in shares divided by the average of the closing prices of our common stock on the NYSE for the five trading days prior to the date on which such quarterly installment is paid. Core Earnings is a non-GAAP financial measure. We calculate Core Earnings as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization of real estate and associated intangibles, acquisition costs associated with successful acquisitions, any unrealized gains, losses or other non-cash items recorded in net income for the period, regardless of whether such items are included in OCI, or in net income and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by our Manager and approved by a majority of our independent directors. For the years ended December 31, 2018, 2017 and 2016, approximately $41.4 million, $42.1 million and $32.8 million, respectively, was incurred for incentive fees. As of December 31, 2018 and 2017, approximately $21.8 million and $22.0 million, respectively, of unpaid incentive fees were included in related‑party payable in our consolidated balance sheets. Expense Reimbursement. We are required to reimburse our Manager for operating expenses incurred by our Manager on our behalf. In addition, pursuant to the terms of the Management Agreement, we are required to reimburse our Manager for the cost of legal, tax, consulting, accounting and other similar services rendered for us by our Manager’s personnel provided that such costs are no greater than those that would be payable if the services were provided by an independent third party. The expense reimbursement is not subject to any dollar limitations but is subject to review by our independent directors. For the years ended December 31, 2018, 2017 and 2016, approximately $7.7 million, $6.4 million and $5.6 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our consolidated statements of operations. As of December 31, 2018 and 2017, approximately $3.0 million and $3.3 million, respectively, of unpaid reimbursable executive compensation and other expenses were included in related‑party payable in our consolidated balance sheets. Equity Awards. In certain instances, we issue RSAs to certain employees of affiliates of our Manager who perform services for us. During the years ended December 31, 2018, 2017 and 2016, we granted 252,375, 138,264 and 169,104 RSAs, respectively, at grant date fair values of $5.3 million, $3.1 million and $3.3 million, respectively. Expenses related to the vesting of awards to employees of affiliates of our Manager were $2.9 million, $2.7 million and $2.2 million, respectively, for the years ended December 31, 2018, 2017 and 2016 and are reflected in general and administrative expenses in our consolidated statements of operations. These shares generally vest over a three-year period. Payments to Manager Employees. During the year ended December 31, 2018, we made a cash payment of $1.3 million directly to an employee of our Manager in connection with the Company’s Infrastructure Lending Segment acquisition which was recognized within general and administrative expenses in our consolidated statements of operations. No cash payments were made directly to employees of our Manager during the years ended December 31, 2017 and 2016. Termination Fee. We can terminate the Management Agreement without cause, as defined in the Management Agreement, with an affirmative two-thirds vote by our independent directors and 180 days written notice to our Manager. Upon termination without cause, our Manager is due a termination fee equal to three times the sum of the average annual base management fee and incentive fee earned by our Manager over the preceding eight calendar quarters. No termination fee is payable if our Manager is terminated for cause, as defined in the Management Agreement, which can be done at any time with 30 days written notice from our board of directors. Manager Equity Plan In May 2017, the Company’s shareholders approved the Starwood Property Trust, Inc. 2017 Manager Equity Plan (the “2017 Manager Equity Plan”), which replaced the Starwood Property Trust, Inc. Manager Equity Plan (“Manager Equity Plan”). In April 2018, we granted 775,000 RSUs to our Manager under the 2017 Manager Equity Plan. In March 2017, we granted 1,000,000 RSUs to our Manager under the Manager Equity Plan. In May 2015, we granted 675,000 RSUs to our Manager under the Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of $12.6 million, $10.4 million and $21.5 million within management fees in our consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016, respectively. Refer to Note 17 for further discussion of these grants. Investments in Loans and Securities In December 2018, the Company co-originated a £62.5 million mezzanine loan for the development of a residential and hotel property located in Central London with SEREF, an affiliate of our Manager. We originated £21.3 million of the loan and SEREF originated £41.2 million. The loan matures in December 2021. During the year ended December 31, 2018, the Company acquired $135.6 million of loans held-for-sale from a residential mortgage originator in which it holds an equity interest. Also in June 2018, the Company originated a $2.0 million subordinated loan to this residential mortgage originator which carries an 8% fixed interest rate and matures in September 2019. Refer to Note 8 for further discussion. In June 2018, a subordinate CMBS investment in a securitization issued by an affiliate of our Manager was paid off in full. We acquired the security, which was secured by five regional malls in Ohio, California and Washington, for $84.1 million in December 2013. In January 2016, we acquired an additional $9.7 million of this subordinate CMBS investment. In March 2018, the Company acquired a €55.0 million newly-originated loan participation from SEREF, which is secured by a luxury resort in Estepona, Spain. In February 2018, a GBP denominated first mortgage loan that we had co-originated with SEREF in November 2013, which was secured by Centre Point, an iconic tower located in Central London, England, was repaid in full. In January 2018, the Company acquired a $130.0 million first mortgage participation from an unaffiliated third party, which bears interest at LIBOR plus 4.00%. The loan is secured by four U.S. power plants that each have long-term power purchase agreements with investment grade counterparties. The borrower is an affiliate of our Manager. In August 2017, we originated a $339.2 million first mortgage and mezzanine loan for the acquisition of an office campus located in Irvine, California. An affiliate of our Manager has a non-controlling equity interest in the borrower. In June 2016, we co-originated a £75.0 million first mortgage for the development of a three-property mixed use portfolio located in Greater London with SEREF, an affiliate of our Manager. We originated £60.0 million of the loan and SEREF originated £15.0 million. In June 2017, we amended the first mortgage to reduce the total commitment to £69.3 million, of which our share was £55.4 million. In October 2018, we amended the first mortgage to increase the total commitment to £77.0 million, of which our share is £61.6 million, and remove one of the properties from the collateral pool. The loan matures in June 2019. In May 2017, our conduit business acquired certain commercial real estate loans from an unaffiliated third party for an aggregate purchase price of $50.0 million. The underlying borrowers are affiliates of our Manager. Subsequently during the year ended December 31, 2017, the loans were sold. In March 2015, we purchased a subordinate single-borrower CMBS from a third party for $58.6 million which is secured by 85 U.S. hotel properties. The borrower is an affiliate of Starwood Distressed Opportunity Fund IX (“Fund IX”), an affiliate of our Manager. The subordinate single-borrower CMBS was fully repaid in March 2017. In December 2014, we co-originated a £200 million first mortgage for the acquisition of a 17-story office tower located in London with SEREF and other private funds, all affiliates of our Manager. We originated £138.3 million of the loan, SEREF provided £45.0 million and the private funds provided £16.7 million. The first mortgage loan was paid off in full in April 2016. In July 2014, we announced the co-origination of a £101.75 million first mortgage loan for the development of a 46-story residential tower and 18-story housing development containing a total of 366 private residential and affordable housing units located in London. We originated £86.75 million of the loan, and private funds managed by an affiliate of our Manager provided £15.0 million. The first mortgage loan was paid off in full in March 2017. In July 2014, we co-originated a €99.0 million mortgage loan for the refinancing and refurbishment of a 239 key, full service hotel located in Amsterdam, Netherlands with SEREF and other private funds, both affiliates of our Manager. We originated €58.0 million of the loan, SEREF provided €25.0 million and the private funds provided €16.0 million. The first mortgage loan was paid off in full in July 2016. In October 2013, we co-originated a GBP-denominated $467.2 million first mortgage loan with SEREF that is secured by the Heron Tower in London, England. The facility was advanced in October 2013 in a single utilization, with SEREF taking $29.2 million of the total advance. The first mortgage loan was paid off in full in April 2016. In September 2013, we co‑originated a EUR‑denominated first mortgage loan with Starfin Lux S.a.r.l. (“Starfin”), an affiliate of our Manager. The loan had an initial funding of approximately $102.3 million ($53.8 million for us and $48.5 million for Starfin), and future funding commitments totaling $24.6 million, of which we committed to fund $12.9 million and Starfin committed to fund $11.7 million. The loan was secured by a portfolio of approximately 20 retail properties located throughout Finland. The first mortgage loan was paid off in full in April 2016. In August 2013, we co‑originated GBP‑denominated first mortgage and mezzanine loans with Starfin. The loans were collateralized by a development of a 109-unit retirement community and a 30-key nursing home in Battersea Park, London, England. We and Starfin committed $11.3 million and $22.5 million, respectively, in aggregate for the two loans. The first mortgage and mezzanine loans were paid off in full in May 2016 and June 2016, respectively. In April 2013, we purchased two B‑Notes for $146.7 million from entities substantially all of whose equity was owned by an affiliate of our Manager. The B‑Notes are secured by two Class A office buildings located in Austin, Texas. On May 17, 2013, we sold senior participation interests in the B‑Notes to a third party, generating $95.0 million in aggregate proceeds. We retained the subordinated interests. In October 2015, we sold one of the subordinated interests in the B-Notes to a third party, generating $29.2 million in aggregate proceeds. The remaining subordinated interest was paid off in full in April 2017. In December 2012, we acquired 9,140,000 ordinary shares in SEREF, a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange, for approximately $14.7 million, which equated to approximately 4% ownership of SEREF. As of December 31, 2018, our shares represent an approximate 2% interest in SEREF. Refer to Note 6 for additional details. In October 2012, we co‑originated $475.0 million in financing for the acquisition and redevelopment of a 10-story retail building located at 701 Seventh Avenue in the Times Square area of Manhattan through a joint venture with Fund IX, an affiliate of our Manager. In January 2014, we refinanced the initial financing with an $815.0 million first mortgage and mezzanine financing to facilitate the further development of the property. Fund IX did not participate in the refinancing. As such, the joint venture distributed $31.6 million to Fund IX for the liquidation of Fund IX’s interest in the joint venture. The first mortgage and mezzanine financing paid off in full in November 2016. Investment in Unconsolidated Entities In October 2014, we committed $150 million for a 33% equity interest in four regional shopping malls (the “Retail Fund”). In August 2017, we funded the remaining $15.5 million capital commitment associated with this investment. During the years ended December 31, 2018 and 2016, we recognized earnings of $3.7 million and $9.7 million, respectively, from the Retail Fund and received net distributions of $7.2 million during the year ended December 31, 2016. There were no distributions received during the year ended December 31, 2018. During the year ended December 31, 2017, we recognized a loss of $27.7 million from the Retail Fund and received distributions of $2.1 million. The carrying value of the Retail Fund as of December 31, 2018 and 2017 was $114.4 million and $110.7 million, respectively. The Retail Fund was established for the purpose of acquiring and operating four leading regional shopping malls located in Florida, Michigan, North Carolina and Virginia. All leasing services and asset management functions for the properties are conducted by an affiliate of our Manager which specializes in redeveloping, managing and repositioning retail real estate assets. In addition, another affiliate of our Manager serves as general partner of the Retail Fund. In consideration for its services, the general partner will earn incentive distributions that are payable once we, along with the other limited partners, receive 100% of our capital and a preferred return of 8%. In April 2013, in connection with our acquisition of LNR, we acquired 50% of a joint venture which owns equity in an online real estate company. An affiliate of ours, Fund IX, owns the remaining 50% of the venture. Acquisitions from Consolidated CMBS Trusts Our Investing and Servicing Segment acquires interests in properties for its REIS Equity Portfolio from CMBS trusts, some of which are consolidated as VIEs on our balance sheet. Acquisitions from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the years ended December 31, 2018, 2017 and 2016, we acquired $27.7 million, $30.9 million and $136.9 million, respectively, of net real estate assets from consolidated CMBS trusts for a total gross purchase price of $28.0 million, $31.3 million and $128.1 million, respectively, and subsequently issued non-controlling interests of $6.5 million for the year ended December 31, 2016. Refer to Note 3 for further discussion of these acquisitions. Also during the year ended December 31, 2016, a partnership in which we hold a 50% interest acquired a $28.4 million real estate asset from a CMBS trust for a purchase price of $19.0 million. Our Investing and Servicing Segment also acquires controlling interests in performing and non-performing commercial mortgage loans from CMBS trusts, some of which are consolidated as VIEs on our balance sheet. Acquisitions from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the year ended December 31, 2016, we acquired $36.6 million of performing loans from consolidated CMBS trusts. There were no performing loans acquired during the years ended December 31, 2018 and 2017. During the year ended December 31, 2016, we acquired $8.2 million of non-performing loans from consolidated CMBS trusts. There were no non-performing loans acquired during the years ended December 31, 2018 and 2017. Other Related-Party Arrangements During the year ended December 31, 2016, we established a co-investment fund which provides key personnel with the opportunity to invest in certain properties included in our REIS Equity Portfolio. These personnel include certain of our employees as well as employees of affiliates of our Manager (collectively, “Fund Participants”). The fund carries an aggregate commitment of $15.0 million and owns a 10% equity interest in certain REIS Equity Portfolio properties acquired subsequent to January 1, 2015. As of December 31, 2018, Fund Participants have funded $4.9 million of the capital commitment, and it is our current expectation that there will be no additional funding of the commitment. The capital contributed by Fund Participants is reflected on our consolidated balance sheets as non-controlling interests in consolidated subsidiaries. In an effort to retain key personnel, the fund provides for disproportionate distributions which allows Fund Participants to earn an incremental 60% on all operating cash flows attributable to their capital account, net of a 5% preferred return to us as general partner of the fund. Amounts earned by Fund Participants pursuant to this waterfall are reflected within net income attributable to non-controlling interests in our consolidated statements of operations. During the years ended December 31, 2018, 2017 and 2016, the non-controlling interests related to this fund received cash distributions of $2.0 million, $1.4 million and $0.4 million, respectively. In November 2018, we engaged Milestone Management (“Milestone”), an affiliate of our Manager, to provide property management services for our Woodstar I Portfolio. Fees paid to Milestone are calculated as a percentage of gross receipts and are at market terms. During the year ended December 31, 2018, property management fees paid to Milestone were immaterial. |
Stockholders' Equity and Non-Co
Stockholders' Equity and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity and Non-Controlling Interests | |
Stockholders’ Equity and Non-Controlling Interests | 17. Stockholders’ Equit The Company’s authorized capital stock consists of 100,000,000 shares of preferred stock, $0.01 par value per share, and 500,000,000 shares of common stock, $0.01 par value per share. We issued common stock in public offerings as follows during the years ended December 31, 2018, 2017 and 2016: Shares issued Price Proceeds Issuance date (in thousands) per share (in thousands) 12/9/16 20,470 $ 21.93 $ 448,825 In May 2014, we established the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”), which provides stockholders with a means of purchasing additional shares of our common stock by reinvesting the cash dividends paid on our common stock and by making additional optional cash purchases. Shares of our common stock purchased under the DRIP Plan will either be issued directly by the Company or purchased in the open market by the plan administrator. The Company may issue up to 11.0 million shares of common stock under the DRIP Plan. During the years ended December 31, 2018, 2017 and 2016, shares issued under the DRIP Plan were not material. In May 2014, we entered into an amended and restated At-The-Market Equity Offering Sales Agreement (the “ATM Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. Sales of shares under the ATM Agreement are made by means of ordinary brokers’ transactions on the NYSE or otherwise at market prices prevailing at the time of sale or at negotiated prices. During the years ended December 31, 2018, 2017 and 2016, there were no shares issued under the ATM Agreement. In September 2014, our board of directors authorized and announced the repurchase of up to $250 million of our outstanding common stock over a period of one year. Subsequent amendments to the repurchase program approved by our board of directors in December 2014, June 2015, January 2016 and February 2017 resulted in the program being (i) amended to increase maximum repurchases to $500.0 million, (ii) expanded to allow for the repurchase of our outstanding Convertible Notes under the program and (iii) extended through January 2019. Purchases made pursuant to the program are made in either the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases are discretionary and are subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. During the year ended December 31, 2018, we repurchased 573,255 shares of common stock for $12.1 million and there were no Convertible Notes repurchases under our repurchase program. During the year ended December 31, 2016, we repurchased $19.4 million aggregate principal amount of our 2017 Notes for $19.9 million. Also during the year ended December 31, 2016, we repurchased 1,052,889 shares of common stock for $19.7 million under the repurchase program. There were no Convertible Note or common stock repurchases under the repurchase program during the year ended December 31, 2017. As of December 31, 2018, we had $250.1 million of remaining capacity to repurchase common stock and/or Convertible Notes under the repurchase program. During the year ended December 31, 2018, we issued 12.4 million shares in connection with the settlement of $263.4 million of our 2019 Notes. Refer to Note 11 for further discussion. Underwriting and offering costs for the year ended December 31, 2016 were $0.8 million and are reflected as a reduction of additional paid in capital in the consolidated statements of equity. Underwriting and offering costs for the years ended December 31, 2018 and 2017 were not material. Our board of directors declared the following dividends during the years ended December 31 2018, 2017 and 2016: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 11/9/18 12/31/18 12/28/18 1/15/19 $ 0.48 Quarterly 8/8/18 9/28/18 9/27/18 10/15/18 0.48 Quarterly 5/4/18 6/29/18 6/28/18 7/13/18 0.48 Quarterly 2/28/18 3/30/18 3/28/18 4/13/18 0.48 Quarterly 11/8/17 12/29/17 12/28/17 1/12/18 0.48 Quarterly 8/9/17 9/29/17 9/28/17 10/13/17 0.48 Quarterly 5/9/17 6/30/17 6/28/17 7/14/17 0.48 Quarterly 2/23/17 3/31/17 3/29/17 4/14/17 0.48 Quarterly 11/2/16 12/30/16 12/28/16 1/13/17 0.48 Quarterly 8/4/16 9/30/16 9/28/16 10/17/16 0.48 Quarterly 5/9/16 6/30/16 6/28/16 7/15/16 0.48 Quarterly 2/25/16 3/31/16 3/29/16 4/15/16 0.48 Quarterly Equity Incentive Plans In May 2017, the Company’s shareholders approved the 2017 Manager Equity Plan and the Starwood Property Trust, Inc. 2017 Equity Plan (the “2017 Equity Plan”), which allow for the issuance of up to 11,000,000 stock options, stock appreciation rights, RSAs, RSUs or other equity-based awards or any combination thereof to the Manager, directors, employees, consultants or any other party providing services to the Company. The 2017 Manager Equity Plan succeeds and replaces the Manager Equity Plan and the 2017 Equity Plan succeeds and replaces the Starwood Property Trust, Inc. Equity Plan (the “Equity Plan”) and the Starwood Property Trust, Inc. Non-Executive Director Stock Plan (the “Non-Executive Director Stock Plan”). As of December 31, 2018, 9,193,843 share awards were available to be issued under either the 2017 Manager Equity Plan or the 2017 Equity Plan, determined on a combined basis. To date, we have only granted RSAs and RSUs under the equity incentive plans. The holders of awards of RSAs or RSUs are entitled to receive dividends or “distribution equivalents” beginning on either the award’s grant date or vest date, depending on the terms of the award. The table below summarizes our share awards granted or vested under the Manager Equity Plan and the 2017 Manager Equity Plan during the years ended December 31, 2018, 2017 and 2016 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period April 2018 RSU 775,000 $ 16,329 3 years March 2017 RSU 1,000,000 22,240 3 years May 2015 RSU 675,000 16,511 3 years January 2014 RSU 489,281 14,776 3 years January 2014 RSU 2,000,000 55,420 3 years During the years ended December 31, 2018, 2017 and 2016, we granted 851,170, 742,516 and 389,237 RSAs, respectively, under the Equity Plan and the 2017 Equity Plan to a select group of eligible participants which includes our employees, directors and employees of our Manager who perform services for us. We also granted 47,463 RSUs during the year ended December 31, 2016. The awards were granted based on the market price of the Company’s common stock on the respective grant date and generally vest over a three-year period. Expenses related to the vesting of these awards are reflected in general and administrative expenses in our consolidated statements of operations. No RSUs were granted during the years ended December 31, 2018 and 2017. The following shares of common stock were issued, without restriction, to our Manager as part of the incentive compensation due under the Management Agreement during the years ended December 31, 2018, 2017 and 2016: Timing of Issuance Shares of Common Stock Issued Price per share November 2018 98,026 $ 21.94 August 2018 131,179 21.67 May 2018 224,071 21.49 March 2018 545,641 20.13 November 2017 239,757 21.64 August 2017 98,061 22.10 May 2017 123,478 21.83 February 2017 418,016 22.84 November 2016 144,093 22.06 August 2016 65,211 21.99 May 2016 117,083 19.64 March 2016 606,166 18.02 The following table summarizes our share‑based compensation expenses during the years ended December 31, 2018, 2017 and 2016 (in thousands): For the year ended December 31, 2018 2017 2016 Management fees: Manager incentive fee $ 20,700 $ 21,072 $ 16,423 2017 Manager Equity Plan (1) 12,573 10,423 21,484 33,273 31,495 37,907 General and administrative: 2017 Equity Plan (1) 10,185 7,728 11,163 10,185 7,728 11,163 Total share-based compensation expense (2) $ 43,458 $ 39,223 $ 49,070 (1) Share-based compensation expense relating to the Manager Equity Plan is reflected within the 2017 Manager Equity Plan. Share-based compensation expense relating to the Non-Executive Director Stock Plan and the Equity Plan are reflected within the 2017 Equity Plan. (2) The income tax benefit associated with the share-based compensation expense for the year ended December 31, 2018 was $1.3 million. Schedule of Non‑Vested Shares and Share Equivalents (1) 2017 Weighted Average 2017 Manager Grant Date Fair Equity Plan Equity Plan Total Value (per share) Balance as of January 1, 2018 885,138 806,251 1,691,389 $ 21.95 Granted 851,170 775,000 1,626,170 21.20 Vested (287,341) (583,331) (870,672) 21.77 Forfeited (12,522) — (12,522) 21.44 Balance as of December 31, 2018 1,436,445 997,920 2,434,365 21.52 (1) Equity-based award activity for awards granted under the Equity Plan and Non-Executive Director Stock Plan is reflected within the 2017 Equity Plan column, and for awards granted under the Manager Equity Plan, within the 2017 Manager Equity Plan column. The weighted average grant date fair value per share of grants during the years ended December 31, 2018, 2017 and 2016 was $21.20, $22.20 and $19.13, respectively. Vesting Schedule 2017 Manager 2017 Equity Plan Equity Plan Total 2019 501,944 591,667 1,093,611 2020 626,159 341,669 967,828 2021 293,133 64,584 357,717 2022 15,209 — 15,209 Total 1,436,445 997,920 2,434,365 As of December 31, 2018, there was approximately $41.0 million of total unrecognized compensation costs related to unvested share‑based compensation arrangements which are expected to be recognized over a weighted average period of 2.0 years. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 were $18.3 million, $18.3 million and $30.2 million, respectively, as of the respective vesting dates. Non-Controlling Interests in Consolidated Subsidiaries As discussed in Note 3, in connection with our Woodstar II Portfolio acquisitions, we issued 10.2 million Class A Units in SPT Dolphin and rights to receive an additional 1.9 million Class A Units if certain contingent events occur. In November 2018, we issued 1.7 million of the total 1.9 million contingent Class A Units to the Contributors. The Class A Units are redeemable for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. No Class A Units were redeemed through December 31, 2018. In consolidation, the issued Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our consolidated balance sheets. To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our consolidated statements of operations. During the year ended December 31, 2018, we recognized net income attributable to non-controlling interests of $17.6 million associated with these Class A Units. Amounts attributable to the Class A Unitholders were not significant for the year ended December 31, 2017. In March 2018, we acquired the non-controlling interest held by a third party in one of our consolidated REIS Equity Portfolio properties, which was carried at $0.3 million, for $3.3 million. The excess of the consideration paid to acquire the non-controlling interest over the carrying value of the non-controlling interest was recorded as a reduction of stockholders’ equity in March 2018. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per Share | |
Earnings per Share | 18. Earnings per Shar The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Year Ended December 31, 2018 2017 2016 Basic Earnings Income attributable to STWD common stockholders $ 385,830 $ $ 365,186 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,592) (3,183) (2,053) Basic earnings $ 382,238 $ $ 363,133 Diluted Earnings Income attributable to STWD common stockholders $ 385,830 $ $ 365,186 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,592) (3,183) (2,053) Add: Interest expense on Convertible Notes (1) 25,148 — — Add: Loss on extinguishment of Convertible Notes (1) 2,099 — — Diluted earnings $ 409,485 $ $ 363,133 Number of Shares: Basic — Average shares outstanding 238,529 Effect of dilutive securities — Convertible Notes (1) 22,659 1,899 2,697 Effect of dilutive securities — Contingently issuable shares 546 508 473 Effect of dilutive securities — Unvested non-participating shares — 52 95 Diluted — Average shares outstanding 241,794 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.44 $ 1.53 $ 1.52 Diluted $ 1.42 $ 1.52 $ 1.50 (1) Prior to June 30, 2018, the Company had asserted its intent and ability to settle the principal amount of the Convertible Notes in cash. Accordingly, under GAAP, the dilutive effect to EPS for the prior years was determined using the treasury stock method by dividing only the “conversion spread value” of the “in-the-money” Convertible Notes by the Company’s average share price and including the resulting share amount in the diluted EPS denominator. The conversion value of the principal amount of the Convertible Notes was not included. Effective June 30, 2018, the Company no longer asserts its intent to fully settle the principal amount of the Convertible Notes in cash upon conversion. Accordingly, under GAAP, the dilutive effect to EPS for the current year is determined using the “if-converted” method whereby interest expense or any loss on extinguishment of our Convertible Notes is added back to the diluted EPS numerator and the full number of potential shares contingently issuable upon their conversion is included in the diluted EPS denominator, if dilutive. Refer to Note 11 for further discussion. As of December 31, 2018, 2017 and 2016, participating shares of 13.8 million, 4.2 million and 0.6 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at December 31, 2018 include 11.9 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 17. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 19. Accumulated Other Comprehensive Incom The changes in AOCI by component are as follows (amounts in thousands): Cumulative Unrealized Gain Effective Portion of (Loss) on Foreign Cumulative Loss on Available-for- Currency Cash Flow Hedges Sale Securities Translation Total Balance at January 1, 2016 $ (65) $ 37,307 $ (7,513) $ 29,729 OCI before reclassifications (284) 7,622 (10,040) (2,702) Amounts reclassified from AOCI 323 — 8,788 9,111 Net period OCI 39 7,622 (1,252) 6,409 Balance at December 31, 2016 (26) 44,929 (8,765) 36,138 OCI before reclassifications 54 13,055 20,775 33,884 Amounts reclassified from AOCI (3) (95) — (98) Net period OCI 51 12,960 20,775 33,786 Balance at December 31, 2017 25 57,889 12,010 69,924 OCI before reclassifications 8 (1,390) (6,865) (8,247) Amounts reclassified from AOCI (33) (2,984) — (3,017) Net period OCI (25) (4,374) (6,865) (11,264) Balance at December 31, 2018 $ — $ 53,515 $ 5,145 $ 58,660 The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Year Affected Line Item Ended December 31, in the Statements Details about AOCI Components 2018 2017 2016 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 33 $ 3 $ (323) Interest expense Unrealized gains (losses) on available-for-sale securities: Interest realized upon collection 46 95 — Interest income from investment securities Net realized gain on sale of investment 2,938 — — Gain on sale of investments and other assets, net Total 95 Foreign currency translation: Foreign currency loss from European servicing and advisory business divestiture — — (8,788) Gain on sale of investments and other assets, net Total reclassifications for the period $ $ 98 $ |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
Fair Value | 20. Fair Valu GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market‑based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II —Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III —Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation Process We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Pricing Verification —We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market. Unobservable Inputs —Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs. Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date. Fair Value on a Recurring Basis We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows: Loans held-for-sale, commercial We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available. Loans held-for-sale, residential We measure the fair value of our residential mortgage loans held-for-sale based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential mortgage loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III. RMBS RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III. CMBS CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable. Equity security The equity security is publicly registered and traded in the United States and its market price is listed on the London Stock Exchange. The security has been classified within Level I. Domestic servicing rights The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy. Derivatives The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. The valuation of over the counter (“OTC”) derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit index instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable. Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of December 31, 2018 and 2017, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not as significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy. Liabilities of consolidated VIEs We utilize several inputs and factors in determining the fair value of VIE liabilities, including future cash flows, market transaction information, ratings, subordination levels, and current market spread and pricing information where available. Quoted market prices are used when this debt trades as an asset. Depending upon the significance of the fair value inputs used in determining these fair values, these liabilities are classified in either Level II or Level III of the fair value hierarchy. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable. Assets of consolidated VIEs The VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy. Fair Value on a Nonrecurring Basis For those assets acquired in connection with the Infrastructure Lending Segment acquisition and measured at fair value on a nonrecurring basis, we have determined the fair values as follows: Loans held-for-investment and debt investment securities held-to-maturity We measure the fair value of our loans held-for-investment and investment securities held-to-maturity acquired in a business combination by discounting their expected cash flows at a rate we estimate would be demanded by market participants. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these assets would be classified in Level III of the fair value hierarchy. Loans held-for-sale We measure the fair value of our loans held-for-sale acquired in a business combination utilizing bids received from third parties to acquire these assets. As these bids represent observable market data, we have determined that the fair value of these assets would be classified in Level II of the fair value hierarchy. Fair Value Only Disclosed We determine the fair value of our financial instruments and assets where fair value is disclosed as follows: Loans held‑for‑investment, loans held-for-sale and loans transferred as secured borrowings We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy. HTM debt securities We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies using the same methodology described for our loans held‑for‑investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis. Secured financing agreements, unsecured senior notes not convertible and secured borrowings on transferred loans The fair value of the secured financing agreements, unsecured senior notes not convertible and secured borrowings on transferred loans are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy. Convertible Notes The fair value of the debt component of our Convertible Notes is estimated by discounting the contractual cash flows at the interest rate we estimate such notes would bear if sold in the current market without the embedded conversion option which, in accordance with ASC 470, is reflected as a component of equity. We have determined that our valuation of our Convertible Notes should be classified in Level III of the fair value hierarchy. Fair Value Disclosures The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of December 31, 2018 and 2017 (amounts in thousands): December 31, 2018 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 671,282 $ — $ — $ 671,282 RMBS 209,079 — — 209,079 CMBS 41,347 — 16,119 25,228 Equity security 11,893 11,893 — — Domestic servicing rights 20,557 — — 20,557 Derivative assets 52,691 — 52,691 — VIE assets 53,446,364 — — 53,446,364 Total $ 54,453,213 $ 11,893 $ 68,810 $ 54,372,510 Financial Liabilities: Derivative liabilities $ 15,415 $ — $ 15,415 $ — VIE liabilities 52,195,042 — 50,753,596 1,441,446 Total $ 52,210,457 $ — $ 50,769,011 $ 1,441,446 December 31, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 745,743 $ — $ — $ 745,743 RMBS 247,021 — — 247,021 CMBS 24,191 — — 24,191 Equity security 13,523 13,523 — — Domestic servicing rights 30,759 — — 30,759 Derivative assets 33,898 — 33,898 — VIE assets 51,045,874 — — 51,045,874 Total $ 52,141,009 $ 13,523 $ 33,898 $ 52,093,588 Financial Liabilities: Derivative liabilities $ 36,200 $ — $ 36,200 $ — VIE liabilities 50,000,010 — 47,811,073 2,188,937 Total $ 50,036,210 $ — $ 47,847,273 $ 2,188,937 The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2018 and 2017 (amounts in thousands): Domestic Loans Servicing VIE Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2017 balance $ 63,279 253,915 31,546 55,082 67,123,261 (2,585,369) $ 64,941,714 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 66,987 — (3,986) (24,323) (17,522,632) 889,008 (16,594,946) OTTI — (109) — — — — (109) Net accretion — 13,457 — — — — 13,457 Included in OCI — 12,960 — — — — 12,960 Purchases / Originations 2,265,552 7,433 11,798 — — — 2,284,783 Sales (1,582,050) — (11,579) — — — (1,593,629) Issuances — — — — — (25,605) (25,605) Cash repayments / receipts (68,025) (40,635) (9,239) — — (40,544) (158,443) Transfers into Level III — — — — — (629,293) (629,293) Transfers out of Level III — — — — — 303,295 303,295 Consolidation of VIEs — — — — 3,925,370 (195,913) 3,729,457 Deconsolidation of VIEs — — 5,651 — (2,480,125) 95,484 (2,378,990) December 31, 2017 balance 745,743 247,021 24,191 30,759 51,045,874 (2,188,937) 49,904,651 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 40,217 3,527 2,568 (10,202) (5,835,225) 1,022,887 (4,776,228) Net accretion — 10,932 — — — — 10,932 Included in OCI — (4,374) — — — — (4,374) Purchases / Originations 2,276,788 — 3,621 — — — 2,280,409 Sales (2,051,634) (13,264) (3,163) — — — (2,068,061) Issuances — — — — — (102,474) (102,474) Cash repayments / receipts (144,322) (34,763) (23,520) — — (89,747) (292,352) Transfers into Level III — — 16,845 — — (1,043,920) (1,027,075) Transfers out of Level III (195,510) — — — — 922,985 727,475 Consolidation of VIEs — — — — 9,885,200 (212,257) 9,672,943 Deconsolidation of VIEs — — 4,686 — (1,649,485) 250,017 (1,394,782) December 31, 2018 balance $ 671,282 $ 209,079 $ 25,228 $ 20,557 $ 53,446,364 $ (1,441,446) $ 52,931,064 Amount of total gains (losses) included in earnings attributable to assets still held at: December 31, 2017 $ 3,506 13,241 1,711 (24,323) (17,522,632) 889,008 $ (16,639,489) December 31, 2018 (3,753) 10,398 (352) (10,202) (5,835,225) 1,022,887 (4,816,247) Amounts were transferred from Level II to Level III due to a decrease in the observable relevant market activity and amounts were transferred from Level III to Level II due to an increase in the observable relevant market activity. The following table presents the fair values, all of which are classified in Level III of the fair value hierarchy, of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands): December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings $ 9,122,972 $ 9,178,709 $ 6,636,898 $ 6,729,302 HTM debt securities 644,149 643,948 433,468 428,338 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 8,757,804 $ 8,662,548 $ 5,847,241 $ 5,810,998 Unsecured senior notes 1,998,831 1,945,160 2,125,235 2,191,285 The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands): Carrying Value at Valuation Unobservable Range as of (1) December 31, 2018 Technique Input December 31, 2018 December 31, 2017 Loans held-for-sale, fair value option $ 671,282 Discounted cash flow Yield (b) 4.6% - 6.1% 4.3% - 6.0% Duration (c) 2.5 - 14.4 years 1.8 - 12.1 years RMBS 209,079 Discounted cash flow Constant prepayment rate (a) 3.2% - 25.2% 2.5% - 21.4% Constant default rate (b) 1.1% - 5.5% 0.9% - 5.8% Loss severity (b) 0% - 73% (e) 14% - 75% (e) Delinquency rate (c) 4% - 31% 4% - 33% Servicer advances (a) 21% - 83% 20% - 83% Annual coupon deterioration (b) 0% - 1.4% 0% - 0.8% Putback amount per projected total collateral loss (d) 0% - 7% 0% - 7% CMBS 25,228 Discounted cash flow Yield (b) 0% - 473.5% 0% - 168.5% Duration (c) 0 - 9.7 years 0 - 9.7 years Domestic servicing rights 20,557 Discounted cash flow Debt yield (a) 7.75% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 53,446,364 Discounted cash flow Yield (b) 0% - 290.9% 0% - 826.6% Duration (c) 0 - 20.4 years 0 - 14.0 years VIE liabilities (1,441,446) Discounted cash flow Yield (b) 0% - 290.9% 0% - 826.6% Duration (c) 0 - 13.7 years 0 - 14.0 years (1) The ranges of significant unobservable inputs are represented in percentages and years. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (a) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. (b) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. (c) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question. (d) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (e) 55% and 81% of the portfolio falls within a range of 45% ‑ 80% as of December 31, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | 21. Income Taxe Certain of our domestic subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT. Our TRSs engage in various real estate related operations, including special servicing of commercial real estate, originating and securitizing commercial mortgage loans, and investing in entities which engage in real estate-related operations. As of December 31, 2018 and 2017, approximately $553.5 million and $673.1 million, respectively, of assets were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs. Our income tax provision consisted of the following for the years ended December 31, 2018, 2017 and 2016 (in thousands): For the year ended December 31, 2018 2017 2016 Current Federal $ 10,508 $ 17,495 $ 8,878 State 3,010 3,115 2,192 Foreign 293 8 938 Total current 13,811 20,618 12,008 Deferred Federal 1,189 10,815 (2,655) State 330 89 (562) Foreign — — (447) Total deferred 1,519 10,904 (3,664) Total income tax provision $ 15,330 $ 31,522 $ 8,344 On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted which, amongst other corporate and individual tax law changes, lowered the corporate tax rate effective January 1, 2018. The Act reduced our Federal statutory rate from 35% to 21% effective January 1, 2018. As a result of this tax rate change, we remeasured our deferred tax assets, which resulted in a $10.4 million write-off of a portion of these assets. This charge was recognized within income tax provision in our consolidated statement of operations for the year ended December 31, 2017. Deferred income taxes in our U.S. tax jurisdiction reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the tax effects of temporary differences on net deferred tax assets which are classified in other assets in our consolidated balance sheets (in thousands): December 31, 2018 2017 Deferred tax asset, net Reserves and accruals $ 5,161 $ 3,845 Domestic intangible assets 14,022 17,196 Investment securities and loans — (161) Investment in unconsolidated entities (1,842) (2,005) Deferred income 134 294 Other U.S. temporary differences 702 526 Net deferred tax assets $ 18,177 $ 19,695 Unrecognized tax benefits were not material as of and during the years ended December 31, 2018 and 2017. The Company’s tax returns are no longer subject to audit for years ended prior to January 1, 2015. The Company had pre-tax income from foreign operations of $1.4 million and $14.1 million during the years ended December 31, 2018 and 2016, respectively. The Company had pre-tax loss from foreign operations of $26.6 million during the year ended December 31, 2017. The following table is a reconciliation of our U.S. federal income tax determined using our statutory federal tax rate to our reported income tax provision for the years ended December 31, 2018, 2017 and 2016 (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Federal statutory tax rate $ 89,571 21.0 % $ 155,501 35.0 % $ 131,598 35.0 % REIT and other non-taxable income (77,972) (18.3) % (135,830) (30.6) % (123,209) (32.7) % State income taxes 3,038 0.7 % 3,091 0.7 % 1,634 0.4 % Federal benefit of state tax deduction (638) (0.1) % (1,082) (0.2) % (572) (0.2) % Valuation allowance — — % — — % (2,966) (0.8) % Changes in tax law — — % 10,365 2.3 % — — % Other 1,331 0.3 % (523) (0.1) % 1,859 0.5 % Effective tax rate $ 15,330 3.6 % $ 31,522 7.1 % $ 8,344 2.2 % During the year ended December 31, 2017, we recognized $53.9 million in earnings from unconsolidated entities related to our interest in an investor entity which owns equity in an online real estate company (see Note 8). The income tax effect of these earnings, net of the related Manager incentive fee, was $18.3 million in our consolidated statement of operations for the year ended December 31, 2017. During the year ended December 31, 2016, we merged two of our TRSs. In doing so, $7.4 million of net operating loss carryforwards which were previously subject to a full valuation allowance became realizable. As a result, we reversed the valuation allowance, which caused a reduction of $3.0 million to our income tax provision in our consolidated statement of operations for the year ended December 31, 2016. There were no changes in valuation allowance during the year ended December 31, 2018. The changes in the valuation allowance associated with our deferred tax assets are as follows for the years ended December 31, 2017, and 2016 (amounts in thousands): 2017 2016 January 1 balance $ 5,533 $ 10,573 Releases to income tax provision (5,533) (2,966) Provision to return adjustments to deferred tax amounts — — Foreign currency adjustments reflected in OCI — (417) Release due to European servicing and advisory business divestiture — (1,585) Other — (72) December 31 balance $ — $ 5,533 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 22. Commitments and Contingencie As of December 31, 2018, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $2.2 billion, of which we expect to fund $2.0 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Additionally, as of December 31, 2018, our Commercial and Residential Lending Segment had outstanding residential mortgage loan purchase commitments of $150.0 million under an agreement to purchase up to $600.0 million of residential mortgage loans that meet our investment criteria from a third party residential mortgage originator. As of December 31, 2018, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $409.7 million, including $240.5 million under revolvers and LCs, and $169.2 million under delayed draw term loans. As of December 31, 2018, $25.5 million of revolvers and LCs were outstanding. In connection with the Infrastructure Lending Segment acquisition, we assumed guarantees of certain borrowers’ performance under existing interest rate swaps. As of December 31, 2018, we had 12 outstanding guarantees on interest rate swaps maturing between March 2019 and June 2045. Refer to Note 13 for further discussion. Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower. Future minimum rental payments for our corporate offices, sublease income from space subleased to other parties within our corporate offices and future minimum rental payments for ground leases of investment properties for each of the next five years and thereafter are as follows (in thousands): Corporate Sublease Ground Rents Income Leases 2019 $ 6,385 $ 1,819 $ 318 2020 5,678 1,660 319 2021 2,819 834 323 2022 39 — 324 2023 — — 326 Thereafter — — 11,576 Total $ 14,921 $ 4,313 $ 13,186 Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements. |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2018 | |
Segment and Geographic Data | |
Segment and Geographic Data | 23. Segment and Geographic Dat In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis prior to the impact of consolidating securitization VIEs under ASC 810. The segment information within this note is reported on that basis. Effective September 30, 2018, we refer to our former Lending Segment as the Commercial and Residential Lending Segment. We also established a new business segment, the Infrastructure Lending Segment, which we acquired on September 19, 2018 and October 15, 2018. Refer to Note 3 for further discussion of the Infrastructure Lending Segment acquisition. The table below presents our results of operations for the year ended December 31, 2018 by business segment (amounts in thousands): Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 576,564 $ 28,995 $ — $ 14,984 $ — $ 620,543 $ — $ 620,543 Interest income from investment securities 50,063 1,095 — 127,100 — 178,258 (121,419) 56,839 Servicing fees 421 — — 103,866 — 104,287 (25,521) 78,766 Rental income — — 292,453 57,231 — 349,684 — 349,684 Other revenues 902 619 444 1,299 360 3,624 (176) 3,448 Total revenues 627,950 30,709 292,897 304,480 360 (147,116) Costs and expenses: Management fees 1,838 — — 72 127,133 129,043 412 129,455 Interest expense 160,769 20,949 75,192 27,459 124,805 409,174 (986) 408,188 General and administrative 26,324 5,631 7,113 84,978 11,747 135,793 339 136,132 Acquisition and investment pursuit costs 2,490 6,806 (46) (663) — 8,587 — 8,587 Costs of rental operations — — 99,632 27,436 — 127,068 — 127,068 Depreciation and amortization 76 — 110,684 21,889 — 132,649 — 132,649 Loan loss allowance, net 34,821 — — — — 34,821 — 34,821 Other expense 307 — (27) 452 — 732 — 732 Total costs and expenses 226,625 33,386 292,548 161,623 263,685 977,867 (235) 977,632 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 165,892 165,892 Change in fair value of servicing rights — — — (14,373) — (14,373) 4,171 (10,202) Change in fair value of investment securities, net (2,765) — — 33,229 — 30,464 (20,119) 10,345 Change in fair value of mortgage loans held-for-sale, net (6,851) — — 47,373 — 40,522 — 40,522 Earnings from unconsolidated entities 5,063 — 3,658 3,809 — 12,530 (1,990) 10,540 Gain on sale of investments and other assets, net 4,019 — 28,468 26,557 — 59,044 — 59,044 Gain (loss) on derivative financial instruments, net 17,654 1,821 22,756 (298) (7,330) 34,603 — 34,603 Foreign currency loss, net (7,816) (1,425) (2) (2) — (9,245) — (9,245) Loss on extinguishment of debt (730) — (2,661) (318) (2,099) (5,808) — (5,808) Other income (loss), net 43 — 508 (1,363) — (812) — (812) Total other income (loss) 8,617 396 52,727 94,614 (9,429) 146,925 147,954 294,879 Income (loss) before income taxes 409,942 (2,281) 53,076 237,471 (272,754) 425,454 1,073 426,527 Income tax provision (2,801) (292) (7,549) (4,688) — (15,330) — (15,330) Net income (loss) 407,141 (2,573) 45,527 232,783 (272,754) 410,124 1,073 411,197 Net income attributable to non-controlling interests (1,451) — (17,623) (5,220) — (24,294) (1,073) (25,367) Net income (loss) attributable to Starwood Property Trust, Inc . $ 405,690 $ (2,573) $ 27,904 $ 227,563 $ (272,754) $ 385,830 $ — $ 385,830 The table below presents our results of operations for the year ended December 31, 2017 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 499,806 $ — $ 14,008 $ — $ 513,814 $ — $ 513,814 Interest income from investment securities 46,710 — 134,743 — 181,453 (128,640) 52,813 Servicing fees 711 — 111,158 — 111,869 (50,423) 61,446 Rental income — 198,466 50,534 — 249,000 — 249,000 Other revenues 686 645 1,794 — 3,125 (310) 2,815 Total revenues 547,913 199,111 312,237 — 1,059,261 (179,373) 879,888 Costs and expenses: Management fees 1,933 — 72 120,387 122,392 307 122,699 Interest expense 107,167 46,552 19,840 123,201 296,760 (1,094) 295,666 General and administrative 19,981 4,734 94,625 9,911 129,251 336 129,587 Acquisition and investment pursuit costs 3,240 375 (143) — 3,472 — 3,472 Costs of rental operations — 72,208 22,050 — 94,258 — 94,258 Depreciation and amortization 66 73,538 19,999 — 93,603 — 93,603 Loan loss allowance, net (5,458) — — — (5,458) — (5,458) Other expense 149 110 1,163 — 1,422 — 1,422 Total costs and expenses 127,078 197,517 157,606 253,499 735,700 (451) 735,249 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 252,434 252,434 Change in fair value of servicing rights — — (30,315) — (30,315) 5,992 (24,323) Change in fair value of investment securities, net 175 — 54,333 — 54,508 (58,319) (3,811) Change in fair value of mortgage loans held-for-sale, net 2,324 — 64,663 — 66,987 — 66,987 Earnings (loss) from unconsolidated entities 3,365 (27,685) 68,192 — 43,872 (13,367) 30,505 (Loss) gain on sale of investments and other assets, net (59) 77 20,481 — 20,499 — 20,499 Loss on derivative financial instruments, net (35,262) (32,333) (2,497) (2,440) (72,532) — (72,532) Foreign currency gain, net 33,651 14 6 — 33,671 — 33,671 OTTI (109) — — — (109) — (109) Loss on extinguishment of debt — — — (5,915) (5,915) — (5,915) Other income, net — 7 1,105 1,745 2,857 (613) 2,244 Total other income (loss) 4,085 (59,920) 175,968 (6,610) 113,523 186,127 299,650 Income (loss) before income taxes 424,920 (58,326) 330,599 (260,109) 437,084 7,205 444,289 Income tax provision (143) (249) (31,130) — (31,522) — (31,522) Net income (loss) 424,777 (58,575) 299,469 (260,109) 405,562 7,205 412,767 Net income attributable to non-controlling interests (1,419) — (3,373) — (4,792) (7,205) (11,997) Net income (loss) attributable to Starwood Property Trust, Inc . $ 423,358 $ (58,575) $ 296,096 $ (260,109) $ 400,770 $ — $ 400,770 The table below presents our results of operations for the year ended December 31, 2016 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 449,470 $ — $ 17,725 $ — $ 467,195 $ — $ 467,195 Interest income from investment securities 47,241 — 146,692 — 193,933 (123,085) 70,848 Servicing fees 782 — 144,941 — 145,723 (56,767) 88,956 Rental income — 114,537 38,223 — 152,760 — 152,760 Other revenues 242 62 5,255 — 5,559 (651) 4,908 Total revenues 497,735 114,599 352,836 — 965,170 (180,503) 784,667 Costs and expenses: Management fees 1,829 — 78 115,348 117,255 196 117,451 Interest expense 88,000 22,009 15,983 105,267 231,259 (460) 230,799 General and administrative 18,517 3,338 121,140 9,243 152,238 703 152,941 Acquisition and investment pursuit costs 1,665 7,886 2,520 1,391 13,462 — 13,462 Costs of rental operations — 47,463 17,638 — 65,101 — 65,101 Depreciation and amortization — 50,669 16,117 — 66,786 — 66,786 Loan loss allowance, net 3,759 — — — 3,759 — 3,759 Other expense — 513 315 — 828 — 828 Total costs and expenses 113,770 131,878 173,791 231,249 650,688 439 651,127 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 151,593 151,593 Change in fair value of servicing rights — — (43,258) — (43,258) (3,891) (47,149) Change in fair value of investment securities, net 20 — (44,094) — (44,074) 42,673 (1,401) Change in fair value of mortgage loans held-for-sale, net — — 74,251 — 74,251 — 74,251 Earnings from unconsolidated entities 3,447 9,736 8,937 — 22,120 (397) 21,723 Gain on sale of investments and other assets, net 1,716 — 226 — 1,942 — 1,942 Gain (loss) on derivative financial instruments, net 41,576 33,476 (4,318) — 70,734 — 70,734 Foreign currency (loss) gain, net (37,595) (38) 3,661 5 (33,967) — (33,967) Loss on extinguishment of debt — — — (8,781) (8,781) — (8,781) Other income, net — 9,102 8,959 4,271 22,332 (8,822) 13,510 Total other income (loss) 9,164 52,276 4,364 (4,505) 61,299 181,156 242,455 Income (loss) before income taxes 393,129 34,997 183,409 (235,754) 375,781 214 375,995 Income tax benefit (provision) 1,610 — (9,954) — (8,344) — (8,344) Net income (loss) 394,739 34,997 173,455 (235,754) 367,437 214 367,651 Net income attributable to non-controlling interests (1,398) — (853) — (2,251) (214) (2,465) Net income (loss) attributable to Starwood Property Trust, Inc . $ 393,341 $ 34,997 $ 172,602 $ (235,754) $ 365,186 $ — $ 365,186 The table below presents our consolidated balance sheet as of December 31, 2018 by business segment (amounts in thousands): Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 14,385 $ 13 $ 27,408 $ 31,449 $ 164,015 $ 237,270 $ 2,554 $ 239,824 Restricted cash 28,324 175,659 25,144 11,679 7,235 248,041 — 248,041 Loans held-for-investment, net 7,072,220 1,456,779 — 3,357 — 8,532,356 — 8,532,356 Loans held-for-sale 670,155 469,775 — 47,622 — 1,187,552 — 1,187,552 Loans transferred as secured borrowings 74,346 — — — — 74,346 — 74,346 Investment securities 1,050,920 60,768 — 998,820 — 2,110,508 (1,204,040) 906,468 Properties, net — — 2,512,847 272,043 — 2,784,890 — 2,784,890 Intangible assets — — 90,889 78,219 — 169,108 (24,075) 145,033 Investment in unconsolidated entities 35,274 — 114,362 44,129 — 193,765 (22,000) 171,765 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 18,174 1,066 32,733 718 — 52,691 — 52,691 Accrued interest receivable 39,862 6,982 359 616 13,177 60,996 (641) 60,355 Other assets 13,958 20,472 67,098 49,363 2,057 152,948 (26) 152,922 VIE assets, at fair value — — — — — — 53,446,364 53,446,364 Total Assets $ 9,017,618 $ 2,310,923 $ 2,870,840 $ 1,678,452 $ 186,484 $ 16,064,317 $ 52,198,136 $ 68,262,453 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 26,508 $ 26,476 $ 67,415 $ 75,655 $ 21,467 $ 217,521 $ 142 $ 217,663 Related-party payable — — — 53 43,990 44,043 — 44,043 Dividends payable — — — — 133,466 133,466 — 133,466 Derivative liabilities 1,290 477 37 1,423 12,188 15,415 — 15,415 Secured financing agreements, net 4,405,599 1,524,551 1,884,187 585,258 297,920 8,697,515 (13,950) 8,683,565 Unsecured senior notes, net — — — — 1,998,831 1,998,831 — 1,998,831 Secured borrowings on transferred loans, net 74,239 — — — — 74,239 — 74,239 VIE liabilities, at fair value — — — — — — 52,195,042 52,195,042 Total Liabilities 4,507,636 1,551,504 1,951,639 662,389 2,507,862 11,181,030 52,181,234 63,362,264 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,808 2,808 — 2,808 Additional paid-in capital 1,430,503 761,992 645,561 87,779 2,069,321 4,995,156 — 4,995,156 Treasury stock — — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 53,516 — 5,208 (64) — 58,660 — 58,660 Retained earnings (accumulated deficit) 3,015,676 (2,573) 13,570 913,642 (4,289,313) (348,998) — (348,998) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,499,695 759,419 664,339 1,001,357 (2,321,378) 4,603,432 — 4,603,432 Non-controlling interests in consolidated subsidiaries 10,287 — 254,862 14,706 — 279,855 16,902 296,757 Total Equity 4,509,982 759,419 919,201 1,016,063 (2,321,378) 4,883,287 16,902 4,900,189 Total Liabilities and Equity $ 9,017,618 $ 2,310,923 $ 2,870,840 $ 1,678,452 $ 186,484 $ 16,064,317 $ 52,198,136 $ 68,262,453 The table below presents our consolidated balance sheet as of December 31, 2017 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 14,580 $ 10,388 $ 39,446 $ 299,308 $ 363,722 $ 5,726 $ 369,448 Restricted cash 21,555 12,491 10,289 4,490 48,825 — 48,825 Loans held-for-investment, net 6,558,699 — 3,796 — 6,562,495 — 6,562,495 Loans held-for-sale 613,287 — 132,456 — 745,743 — 745,743 Loans transferred as secured borrowings 74,403 — — — 74,403 — 74,403 Investment securities 694,012 — 1,024,143 — 1,718,155 (999,952) 718,203 Properties, net — 2,364,806 282,675 — 2,647,481 — 2,647,481 Intangible assets — 116,081 95,257 — 211,338 (28,246) 183,092 Investment in unconsolidated entities 45,028 110,704 50,759 — 206,491 (20,988) 185,503 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 6,487 26,775 636 — 33,898 — 33,898 Accrued interest receivable 46,650 68 243 786 47,747 — 47,747 Other assets 5,648 71,929 59,676 3,755 141,008 (2,868) 138,140 VIE assets, at fair value — — — — — 51,045,874 51,045,874 Total Assets $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 23,054 $ 62,890 $ 74,426 $ 23,536 $ 183,906 $ 1,211 $ 185,117 Related-party payable 20 — 31 42,318 42,369 — 42,369 Dividends payable — — — 125,916 125,916 — 125,916 Derivative liabilities 20,386 13,063 85 2,666 36,200 — 36,200 Secured financing agreements, net 3,466,487 1,621,885 411,526 296,858 5,796,756 (23,700) 5,773,056 Unsecured senior notes, net — — — 2,125,235 2,125,235 — 2,125,235 Secured borrowings on transferred loans 74,185 — — — 74,185 — 74,185 VIE liabilities, at fair value — — — — — 50,000,010 50,000,010 Total Liabilities 3,584,132 1,697,838 486,068 2,616,529 8,384,567 49,977,521 58,362,088 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,660 2,660 — 2,660 Additional paid-in capital 1,818,559 957,329 659,062 1,280,296 4,715,246 — 4,715,246 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 57,914 12,076 (66) — 69,924 — 69,924 Retained earnings (accumulated deficit) 2,609,050 (14,335) 687,015 (3,499,042) (217,312) — (217,312) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,485,523 955,070 1,346,011 (2,308,190) 4,478,414 — 4,478,414 Non-controlling interests in consolidated subsidiaries 10,694 60,334 7,734 — 78,762 22,025 100,787 Total Equity 4,496,217 1,015,404 1,353,745 (2,308,190) 4,557,176 22,025 4,579,201 Total Liabilities and Equity $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 Revenues generated from foreign sources were $90.5 million, $82.0 million and $100.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. The majority of our revenues generated from foreign sources are derived from Ireland and the United Kingdom. Refer to Schedules III and IV for a detailed listing of the properties and loans held by the Company, including their respective geographic locations. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 24. Quarterly Financial Data (Unaudited The following table summarizes our quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our results of operations (amounts in thousands, except per share amounts): For the Three-Month Periods Ended March 31 June 30 September 30 December 31 2018: Revenues $ 260,587 $ 269,556 $ 285,719 $ Net income 104,794 117,090 89,381 99,932 Net income attributable to Starwood Property Trust, Inc. 99,932 109,230 84,536 92,132 Earnings per share — Basic 0.38 0.41 0.31 0.33 Earnings per share — Diluted 0.38 0.40 0.31 0.33 2017: Revenues $ 198,720 $ 211,569 $ 226,767 $ Net income 102,854 123,233 92,799 93,881 Net income attributable to Starwood Property Trust, Inc. 102,358 117,380 88,428 92,604 Earnings per share — Basic 0.39 0.45 0.34 0.35 Earnings per share — Diluted 0.39 0.44 0.33 0.35 Annual EPS may not equal the sum of each quarter’s EPS due to rounding and other computational factors. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events | 25. Subsequent Event Our significant events subsequent to December 31, 2018 were as follows: 2019 Convertible Notes Subsequent to December 31, 2018, the remaining $78.0 million of the 2019 Notes were settled through the issuance of 3.6 million shares and cash payments of $12.0 million. Refer to Note 11 for further discussion. Dividend Declaration On February 28, 2019, our board of directors declared a dividend of $0.48 per share for the first quarter of 2019, which is payable on April 15, 2019 to common stockholders of record as of March 29, 2019. |
Schedule III-Real Estate and Ac
Schedule III-Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2018 | |
Schedule III-Real Estate and Accumulated Depreciation | |
Schedule III-Real Estate and Accumulated Depreciation | Starwood Property Trust, Inc. and Subsidiaries Schedule III—Real Estate and Accumulated Depreciation December 31, 2018 (Dollars in thousands) Initial Cost Costs Gross Amounts Carried at to Company Capitalized December 31, 2018 Property Type / Depreciable Subsequent to Depreciable Accumulated Acquisition Geographic Location Encumbrances Land Property Acquisition(1) Land Property Total Depreciation(3) Date Aggregated Properties Hotel—U.S., Midwest (1 property) $ — $ — $ 5,565 $ 599 $ — $ 6,164 $ 6,164 $ (767) Feb-18 Medical office—U.S., Midwest (7 properties) 70,184 2,764 97,802 358 2,764 98,160 100,924 (6,510) Dec-16 Medical office—U.S., North East (7 properties) 157,492 11,283 176,999 — 11,283 176,999 188,282 (10,980) Dec-16 Medical office—U.S., South East (6 properties) 87,106 7,930 117,740 98 7,930 117,838 125,768 (7,751) Dec-16 Medical office—U.S., South West (8 properties) 104,637 15,921 127,014 475 15,921 127,489 143,410 (9,130) Dec-16 Medical office—U.S., West (6 properties) 73,408 13,415 107,844 247 13,415 108,091 121,506 (8,432) Dec-16 Mixed Use—U.S., West (1 property) 8,667 1,002 14,323 174 1,002 14,497 15,499 (1,216) Feb-16 Multifamily—Ireland (1 property) 11,887 8,711 9,250 324 8,711 9,574 18,285 (1,219) May-15 Multifamily—U.S., South East (64 properties) 880,149 253,109 932,848 28,668 253,138 961,487 1,214,625 (77,455) Sep-14 to Aug-18 Office—Ireland (11 properties) 350,968 156,104 282,798 6,770 156,104 289,568 445,672 (34,598) May-15 to Jul 15 Office—U.S., North East (1 property) 16,500 7,250 10,699 326 7,250 11,025 18,275 (585) May-18 Office—U.S., South East (4 properties) 56,329 27,497 46,708 10,819 27,497 57,527 85,024 (7,646) May-16 to May-17 Office—U.S., South West (2 properties) 28,333 8,188 28,035 1,779 8,188 29,814 38,002 (1,382) Sep-17 to Feb-18 Office—U.S., West (1 property) — — 4,261 2,791 — 7,052 7,052 (559) Oct-17 Retail—U.S., Mid Atlantic (2 properties) 11,500 6,432 6,315 2,085 6,432 8,400 14,832 (1,374) Mar-16 Retail—U.S., Midwest (7 properties) 79,300 24,384 109,445 1,354 24,384 110,799 135,183 (5,616) Nov-15 to Sep-17 Retail—U.S., North East (2 properties) 22,192 4,989 21,077 851 4,989 21,928 26,917 (2,213) Oct-15 to Nov-15 Retail—U.S., South East (5 properties) 42,200 21,353 60,621 32 21,353 60,653 82,006 (2,484) Sep-16 to Sep-17 Retail—U.S., South West (6 properties) 77,074 37,458 78,579 100 37,458 78,679 116,137 (5,372) Oct-14 to Sep-17 Retail—U.S., West (2 properties) 33,000 18,633 36,794 — 18,633 36,794 55,427 (1,607) Sep-17 Self-storage—U.S., North East (1 property) 9,800 2,202 11,498 113 2,202 11,611 13,813 (1,017) Dec-15 $ 2,120,726 $ 628,625 $ $ 57,963 $ 628,654 $ $ (2) $ (187,913) Notes to Schedule III: (1) No material costs subsequent to acquisition were capitalized to land. (2) The aggregate cost for federal income tax purposes is $3.2 billion. (3) Depreciation is computed based upon estimated useful lives as described in Note 7 to the Consolidated Financial Statements. The following schedule presents our real estate activity during the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Beginning balance, January 1 $ 2,755,050 $ 1,986,285 $ 928,060 Additions during the year: Acquisitions (1) 445,170 725,955 1,048,985 Acquisitions through foreclosure — — 7,248 Improvements 25,764 18,575 15,766 Contingent consideration issued 38,211 — — Measurement period adjustments — 660 — Foreign currency translation — 59,508 — Total additions 509,145 804,698 1,071,999 Deductions during the year: Costs of real estate sold (269,989) (35,774) — Foreign currency translation (21,260) — (13,774) Other (143) (159) — Total deductions (291,392) (35,933) (13,774) Ending balance, December 31 $ 2,972,803 $ 2,755,050 $ 1,986,285 (1) Refer to Note 16 to the Consolidated Financial Statements for a discussion of property acquisitions from related parties. The following schedule presents activity within accumulated depreciation during the years ended December 31, 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Beginning balance, January 1 $ 107,569 $ 41,565 $ 8,835 Depreciation expense 91,188 65,253 33,350 Disposition/write-offs (9,389) (1,785) — Foreign currency translation (1,455) 2,536 (620) Ending balance, December 31 $ 187,913 $ $ 41,565 |
Schedule IV-Mortgage Loans on R
Schedule IV-Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2018 | |
Schedule IV-Mortgage Loans on Real Estate | |
Schedule IV-Mortgage Loans on Real Estate | Starwood Property Trust, Inc. and Subsidiaries Schedule IV—Mortgage Loans on Real Estat December 31, 2018 (Dollars in thousands) Prior Face Carrying Payment Maturity Principal Amount of Description/ Location Liens (1) Amount Amount Interest Rate (2) Terms (3) Date (4) Delinquent Loans Individually Significant First Mortgages: (5) Multifamily, Brooklyn, NY $ — $ 269,846 $ 267,316 L+3.25% to 12.25% I/O 6/11/2020 $ — Multifamily, Various, United Kingdom — 290,286 287,549 3GBP+4.50% I/O 10/26/2021 — Office, Irvine, CA — 298,369 296,237 L+2.25% to 4.50% I/O 9/9/2020 — Office, New York, NY — 239,250 237,690 L+3.25% to 6.50% I/O 7/1/2023 — Aggregated First Mortgages: (5) Hotel, International, Floating (1 mortgage) N/A N/A 29,798 3EU+4.90% N/A — Hotel, Mid Atlantic, Floating (2 mortgages) N/A N/A 79,129 L+2.35% to 7.75% N/A — Hotel, Midwest, Floating (4 mortgages) N/A N/A 53,477 L+2.75% to 9.13% N/A — Hotel, North East, Floating (5 mortgages) N/A N/A 343,880 L+2.50% to 6.90% N/A — Hotel, Various, Floating (5 mortgages) N/A N/A 331,445 L+2.00% to 10.50% N/A — Hotel, West, Floating (11 mortgages) N/A N/A 299,361 L+2.00% to 10.17% N/A 2019-2021 — Industrial, South East, Fixed (8 mortgages) N/A N/A 73,220 N/A 24,253 Industrial, South East, Floating (4 mortgages) N/A N/A 63,224 L+2.75% to 12.75% N/A — Mixed Use, International, Floating (2 mortgages) N/A N/A 101,483 3EU+4.85% N/A — Mixed Use, International, Floating (2 mortgages) N/A N/A 70,440 GBP+5.75% N/A — Mixed Use, Mid Atlantic, Floating (4 mortgages) N/A N/A 118,133 L+4.50% to 10.10% N/A — Mixed Use, South East, Fixed (2 mortgages) N/A N/A 110,515 5.00% to 12.00% N/A — Mixed Use, South West, Floating (9 mortgages) N/A N/A 303,098 L+2.25% to 12.70% N/A 2019-2020 — Mixed Use, West, Floating (2 mortgages) N/A N/A 184,239 L+6.37% N/A — Multifamily, Midwest, Fixed (2 mortgages) N/A N/A 2,874 6.28% to 6.54% N/A 2019-2024 — Multifamily, North East, Floating (6 mortgages) N/A N/A 207,168 L+2.75% to 7.10% N/A — Multifamily, South West, Floating (10 mortgages) N/A N/A 240,821 L+2.75% to 3.15% N/A 2020-2021 — Multifamily, West, Floating (12 mortgages) N/A N/A 5,308 L+2.35% to 8.83% N/A 2019-2020 — Office, International, Fixed (1 mortgage) N/A N/A 53,113 N/A — Office, Mid Atlantic, Floating (8 mortgages) N/A N/A 287,154 L+2.00% to 7.00% N/A — Office, Midwest, Floating (8 mortgages) N/A N/A 237,161 L+1.75% to 10.15% N/A 2020-2021 — Office, North East, Floating (18 mortgages) N/A N/A 461,038 L+2.00% to 12.00% N/A 2019-2022 — Office, South East, Floating (4 mortgages) N/A N/A 112,034 L+2.00% to 8.25% N/A — Office, South West, Floating (12 mortgages) N/A N/A 398,462 L+2.00% to 10.70% N/A 2019-2023 — Office, West, Floating (16 mortgages) N/A N/A 420,025 L+2.00% to 9.45% N/A 2019-2021 — Other, Midwest, Floating (4 mortgages) N/A N/A 60,133 L+4.50% to 11.17% N/A — Other, North East, Floating (1 mortgage) N/A N/A 34,283 L+8.30% N/A — Other, Various, Fixed (1 mortgage) N/A N/A 40,975 N/A — Other, Various, Floating (1 mortgage) N/A N/A 109,552 3M L+4.00% N/A — Other, West, Floating (4 mortgages) N/A N/A 104,982 L+4.50% to 10.50% N/A — Residential, North East, Fixed (1 mortgage) N/A N/A 48,271 N/A — Residential, North East, Floating (11 mortgages) N/A N/A 295,970 L+4.00% to 8.60% N/A 2019-2022 — Residential, West, Floating (4 mortgages) N/A N/A 56,612 L+2.75% to 8.75% N/A — Retail, Mid Atlantic, Fixed (1 mortgage) N/A N/A 157 N/A — Retail, Midwest, Floating (4 mortgages) N/A N/A 38,189 L+2.75% to 10.75% N/A — Retail, North East, Floating (1 mortgage) N/A N/A 77,794 L+6.75% N/A — Retail, South West, Floating (4 mortgages) N/A N/A 63,611 L+2.25% to 15.25% N/A — Retail, South West, Fixed (1 mortgage) N/A N/A 482 N/A — Retail, West, Fixed (2 mortgages) N/A N/A 1,073 7.07% to 7.26% N/A 2019-2023 — Loans Held-for-Sale, Various, Fixed N/A N/A 671,282 3.25% to 9.13% N/A 2028-2058 4,273 Loans Held-for-Sale, Various, Floating N/A N/A 46,734 L+3.00% to 3.15% N/A 2021-2023 — Aggregated Subordinated and Mezzanine Loans: (5) Hotel, South East, Floating (4 mortgages) N/A N/A 119,042 L+6.75% to 8.10% N/A 2020-2022 — Hotel, Various, Floating (1 mortgage) N/A N/A 99,284 L+8.63% N/A — Industrial, South East, Fixed (2 mortgages) N/A N/A 2,747 N/A — Mixed Use, International, Fixed (1 mortgage) N/A N/A 22,434 N/A — Mixed Use, Mid Atlantic, Floating (1 mortgage) N/A N/A 74,346 L+4.50% N/A — Mixed Use, South East, Floating (1 mortgage) N/A N/A 9,875 L+10.25% N/A — Multifamily, Mid Atlantic, Fixed (1 mortgage) N/A N/A 2,968 N/A — Multifamily, Mid Atlantic, Floating (1 mortgage) N/A N/A 3,831 L+9.75% N/A — Multifamily, North East, Floating (1 mortgage) N/A N/A 2,729 L+9.25% N/A — Office, Midwest, Floating (3 mortgages) N/A N/A 13,084 L+8.88% to 9.00% N/A — Office, North East, Fixed (3 mortgages) N/A N/A 84,998 8.72% to 11.00% N/A 2019-2023 — Office, North East, Floating (1 mortgage) N/A N/A 66,240 L+8.00% N/A — Office, South East, Fixed (1 mortgage) N/A N/A 7,392 N/A — Retail, Midwest, Fixed (2 mortgages) N/A N/A 11,977 N/A 11,977 Retail, Midwest, Floating (1 mortgage) N/A N/A 963 L+8.85% N/A — Loan Loss Allowance — — (39,151) — Prepaid Loan Costs, Net — — (1,552) — $ 7,806,699 (6) $ 40,503 Notes to Schedule IV: (1) Represents third party priority liens. Third party portions of pari‑passu participations are not considered prior liens. Additionally, excludes the outstanding debt on third party joint ventures of underlying borrowers. (2) L = one month LIBOR rate, 3M L = three month LIBOR rate, GBP = one month GBP LIBOR rate, 3GBP = three month GBP LIBOR rate, 3EU = three month EURO LIBOR rate. (3) I/O = interest only until maturity. (4) Based on management’s judgment of extension options being exercised. (5) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. (6) The aggregate cost for federal income tax purposes is $7.8 billion. The following schedule presents activity within our Commercial and Residential Lending Segment and Investing and Servicing Segment loan portfolios during the years ended December 31, 2018, 2017 and 2016 (amounts in thousands): For the year ended December 31, 2018 2017 2016 Balance at January 1 $ 7,357,034 $ 5,946,274 $ 6,263,517 Acquisitions/originations/additional funding 6,543,873 5,494,837 4,502,842 Capitalized interest 62,445 73,784 80,992 Basis of loans sold (3,082,347) (1,634,717) (2,266,901) Loan maturities/principal repayments (3,086,107) (2,657,696) (2,742,462) Discount accretion/premium amortization 37,408 38,560 48,384 Changes in fair value 40,522 66,987 74,251 Unrealized foreign currency translation (loss) gain (26,645) 42,356 (47,906) Change in loan loss allowance, net (34,821) 5,458 (3,759) Transfer to/from other asset classifications (4,663) (18,809) 37,316 Balance at December 31 $ 7,806,699 $ 7,357,034 $ 5,946,274 Refer to Note 16 to the Consolidated Financial Statements for a discussion of loan activity with related parties. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Balance Sheet Presentation of Securitization Variable Interest Entities | Balance Sheet Presentation of Securitization Variable Interest Entities We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, an allocable portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. Refer to the segment data in Note 23 for a presentation of our business segments without consolidation of these VIEs. |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. Entities not deemed to be VIEs are consolidated if we own a majority of the voting securities or interests or hold the general partnership interest, except in those instances in which the minority voting interest owner or limited partner can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. Substantive participative rights include the ability to select, terminate and set compensation of the investee’s management, if applicable, and the ability to participate in capital and operating decisions of the investee, including budgets, in the ordinary course of business. We invest in entities with varying structures, many of which do not have voting securities or interests, such as general partnerships, limited partnerships, and limited liability companies. In many of these structures, control of the entity rests with the general partners or managing members, while other members hold passive interests. The general partner or managing member may hold anywhere from a relatively small percentage of the total financial interests to a majority of the financial interests. For entities not deemed to be VIEs, where we serve as the sole general partner or managing member, we are considered to have the controlling financial interest and therefore the entity is consolidated, regardless of our financial interest percentage, unless there are other limited partners or investing members that can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. In those circumstances where we, as majority controlling interest owner, can be removed without cause or cannot cause the entity to take actions that are significant in the ordinary course of business, because such actions could be vetoed by the minority controlling interest owner, we do not consolidate the entity. When we consolidate entities other than securitization VIEs, the third party ownership interests are reflected as non-controlling interests in consolidated subsidiaries, a separate component of equity, in our consolidated balance sheet. When we consolidate securitization VIEs, the third party ownership interests are reflected as VIE liabilities in our consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. Our presentation of net income attributes earnings to controlling and non-controlling interests. |
Variable Interest Entities | Variable Interest Entities In addition to the securitization VIEs, certain other entities in which we hold interests are considered VIEs as the limited partners of these entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include unrated and non‑investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work‑out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, an allocable portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding allocable amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our consolidated statements of operations. The residual difference shown on our consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to nonperformance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust. REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 2% of our consolidated securitization VIE assets, with the remaining 98% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standards Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate. |
Fair Value Option | Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for eligible financial assets and liabilities of our consolidated securitization VIEs, loans held‑for‑sale originated or acquired for future securitization, purchased CMBS issued by VIEs we could consolidate in the future and certain investments in marketable equity securities which, effective January 1, 2018, are now required to be carried at fair value through earnings. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. |
Fair Value Measurements | Fair Value Measurements We measure our mortgage‑backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements. |
Business Combinations | Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. Effective with our early adoption of ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business , in December 2017, we apply the asset acquisition provisions of ASC 805 in accounting for acquisitions of real estate with in-place leases where substantially all of the fair value of the assets acquired is concentrated in either a single identifiable asset or group of similar identifiable assets. This results in the acquired properties being recognized initially at their purchase price inclusive of acquisition costs, which are capitalized. All other acquisitions of real estate with in-place leases are accounted for in accordance with the business combination provisions of ASC 805. We also apply the asset acquisition provisions of ASC 805 for acquired real estate assets where a lease is entered into concurrently with the acquisition of the asset, such as in sale leaseback transactions. Prior to our early adoption of ASU 2017-01 , we applied the business combination provisions of ASC 805 in accounting for most acquisitions of real estate assets with in-place leases. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks and short‑term investments. Short‑term investments are comprised of highly liquid instruments with original maturities of three months or less. The Company maintains its cash and cash equivalents in multiple financial institutions and at times these balances exceed federally insurable limits. |
Restricted Cash | Restricted Cash Restricted cash includes cash and cash equivalents that are legally or contractually restricted as to withdrawal or usage and primarily includes (i) loan payments received by our Infrastructure Lending Segment which are restricted by our lender and periodically applied, in part, to the outstanding balance of the Infrastructure Lending debt facility, (ii) cash collateral associated with derivative financial instruments and (iii) funds held on behalf of borrowers and tenants. |
Loans Held-for-Investment | Loans Held‑for‑Investment Loans that are held for investment are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs as applicable, unless the loans are deemed impaired. Loan Impairment We evaluate each loan classified as held-for-investment for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. If a loan is considered to be impaired, we record an allowance through the provision for loan losses to reduce the carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. There may be circumstances where we modify a loan by granting the borrower a concession that we might not otherwise consider when a borrower is experiencing financial difficulty or is expected to experience financial difficulty in the foreseeable future. Such concessionary modifications are classified as troubled debt restructurings (“TDRs”) unless the modification solely results in a delay in payment that is insignificant. Loans classified as TDRs are considered impaired loans for reporting and measurement purposes. |
Loans Held-For-Sale | Loans Held‑For‑Sale Our loans that we intend to sell or liquidate in the short‑term are classified as held‑for‑sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase. With regards to our Investing and Servicing Segment’s conduit business, we periodically enter into derivative financial instruments to hedge unpredictable changes in fair value of loans held-for-sale, including changes resulting from both interest rates and credit quality. Because these derivatives are not designated, changes in their fair value are recorded in earnings. In order to best reflect the results of the hedged loan portfolio in earnings, we have elected the fair value option for these loans. As a result, changes in the fair value of the loans are also recorded in earnings. |
Investment Securities | Investment Securities We designate our debt investment securities as held-to-maturity, available-for-sale, or trading depending on our investment strategy and ability to hold such securities to maturity. Held-to-maturity debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as available-for-sale and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on available-for-sale debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in stockholders’ equity. When the estimated fair value of a debt security for which we have not elected the fair value option is less than its amortized cost, we consider whether there is OTTI in the value of the security. An impairment is deemed an OTTI if (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovering our cost basis or (iii) we do not expect to recover the entire amortized cost basis of the security even if we do not intend to sell the security or do not believe it is more likely than not that we will be required to sell the security before recovering our cost basis. If the impairment is deemed to be an OTTI, the resulting accounting treatment depends on the factors causing the OTTI. If the OTTI has resulted from (i) our intention to sell the security, or (ii) our judgment that it is more likely than not that we will be required to sell the security before recovering our cost basis, an impairment loss is recognized in earnings equal to the entire difference between our amortized cost basis and fair value. Whereas, if the OTTI has resulted from our conclusion that we will not recover our cost basis even if we do not intend to sell the security or do not believe it is more likely than not that we will be required to sell the security before recovering our cost basis, only the credit loss portion of the impairment is recorded in earnings, and the portion of the loss related to other factors, such as changes in interest rates, continues to be recognized in AOCI. Following the recognition of an OTTI through earnings, a new cost basis is established for the security. Determining whether there is an OTTI may require us to exercise significant judgment and make significant assumptions, including, but not limited to, estimated cash flows, estimated prepayments, loss assumptions, and assumptions regarding changes in interest rates. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. |
Properties Held-For-Investment | Properties Held-For-Investment Properties, net, as reported on our consolidated balance sheets, consist of commercial real estate properties held-for-investment and are recorded at cost, less accumulated depreciation and impairments, if any. Properties consist primarily of land, buildings and improvements. Land is not depreciated, and buildings and improvements are depreciated on a straight-line basis over their estimated useful lives. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. We review properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is determined by comparing the carrying amount of the property to the undiscounted future net cash flows it is expected to generate. If such carrying amount exceeds the expected undiscounted future net cash flows, we adjust the carrying amount of the property to its estimated fair value. |
Properties Held-For-Sale | Properties Held-For-Sale Properties and any associated intangible assets are presented within properties held-for-sale on our consolidated balance sheet when the sale of the property is considered probable, at which time we cease depreciation and amortization of the property and the associated intangibles. Held-for-sale properties are reported at the lower of their carrying value or fair value less costs to sell. There were no properties held-for-sale at December 31, 2018 or 2017. |
Servicing Rights Intangibles | Servicing Rights Intangibles Our identifiable intangible assets include U.S. special servicing rights and, until October 2016, also included European servicing rights. For the U.S. special servicing rights, we have elected to apply the fair value measurement method, which is necessary to conform to our election of the fair value option for measuring the assets and liabilities of the VIEs consolidated pursuant to ASC 810. For the European servicing rights, the amortization method was elected and the asset was amortized in proportion to and over the period of estimated net servicing income. |
Lease Intangibles | Lease Intangibles In connection with our acquisition of properties, we recognize intangible lease assets and liabilities associated with certain noncancelable operating leases of the acquired properties. These intangible lease assets and liabilities include in-place lease intangible assets, favorable lease intangible assets and unfavorable lease liabilities. In-place lease intangible assets reflect the acquired benefit of purchasing properties with in-place leases and are measured based on estimates of direct costs associated with leasing the property and lost rental income during projected lease-up and free rent periods, both of which are avoided due to the presence of in-place leases at the acquisition date. Favorable and unfavorable lease intangible assets and liabilities reflect the terms of in-place tenant leases being either favorable or unfavorable relative to market terms at the acquisition date. The estimated fair values of our favorable and unfavorable lease assets and liabilities at the respective acquisition dates represent the discounted cash flow differential between the contractual cash flows of such leases and the estimated cash flows that comparable leases at market terms would generate. Our intangible lease assets and liabilities are recognized within intangible assets and other liabilities, respectively, in our consolidated balance sheets. Our in-place lease intangible assets are amortized to amortization expense while our favorable and unfavorable lease intangible assets and liabilities where we are the lessor are amortized to rental income. Favorable and unfavorable lease intangible assets and liabilities where we are the lessee are amortized to costs of rental operations, except in the case of our unfavorable lease liability associated with office space occupied by the Company, which is amortized to general and administrative expense. Both our favorable and unfavorable lease intangible assets and liabilities are amortized over the remaining noncancelable term of the respective leases on a straight-line basis. |
Lease Classification | Lease Classification In accordance with ASC 840, Leases , we evaluate all new or amended leases to determine if the lease (i) provides for a transfer of ownership to the lessee at the conclusion of the lease, (ii) provides the lessee with a bargain purchase option, (iii) has a term of 75% or more of the leased asset’s remaining useful life or (iv) has minimum lease payments with a present value of 90% or more of the leased asset’s fair value. If any of these conditions exist, we account for the lease as a capital lease, otherwise, the lease is considered an operating lease. |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities We own non‑controlling equity interests in various privately‑held partnerships and limited liability companies. Unless we elect the fair value option under ASC 825, we use the cost method to account for investments in which our interest is so minor that we have virtually no influence over the underlying investees. We use the equity method to account for all other non‑controlling interests in partnerships and limited liability companies. Equity method investments are initially recorded at cost and subsequently adjusted for our share of income or loss, as well as contributions made or distributions received. Prior to January 1, 2018, all cost method investments were initially recorded at cost with income generally recorded when distributions were received. On January 1, 2018, ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities , became effective prospectively for public companies with a calendar fiscal year. This ASU requires entities to carry all investments in equity securities, including other ownership interests such as partnerships, unincorporated joint ventures, and limited liability companies, at fair value with changes in fair value recognized within net income. This ASU does not apply to equity method investments, investments in Federal Home Loan Bank (“FHLB”) stock, investments that result in consolidation of the investee or investments in certain investment companies. For investments in equity securities without a readily determinable fair value, an entity is permitted to elect a practicability exception, under which the investment will be measured at cost, less impairment, plus or minus observable price changes from orderly transactions of an identical or similar investment of the same issuer. Our equity investments within the scope of this ASU are limited to our cost method equity investments discussed in Note 8, with the exception of our FHLB stock which is outside the scope of this ASU, and to our marketable equity security discussed in Note 6 for which we had previously elected the fair value option. Our cost method equity investments within the scope of this ASU do not have readily determinable fair values. Therefore, we have elected the practicability exception whereby we measure these investments at cost, less impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. Additionally, this ASU eliminated the requirement to assess whether an impairment of an equity investment is other than temporary. The impairment model for equity investments subject to this election is now a single-step model whereby an entity performs a qualitative assessment to identify impairment. If the qualitative assessment indicates that an impairment exists, the entity would estimate the fair value of the investment and recognize in net income an impairment loss equal to the difference between the fair value and the carrying amount of the equity investment. We continue to review our equity method and other investments not subject to this election for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods and available information at the time the analyses are prepared. |
Goodwill | Goodwill Goodwill is not amortized, but rather tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2018 represents the excess of the consideration paid over the fair value of net assets acquired in connection with the acquisitions of LNR Property LLC (“LNR”) in April 2013 and the Infrastructure Lending Segment in September 2018 and October 2018. In testing goodwill for impairment, we follow ASC 350, Intangibles—Goodwill and Other , which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, we compare the fair value of that reporting unit with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss equal to the amount by which the carrying value of the goodwill exceeds the implied fair value of that goodwill. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We record all derivatives on our consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on whether we have elected to designate a derivative in a hedging relationship and have satisfied the criteria necessary to apply hedge accounting under GAAP. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We regularly enter into derivative contracts that are intended to economically hedge certain of our risks, even though the transactions may not qualify for, or we may not elect to pursue, hedge accounting. In such cases, changes in the fair value of the derivatives are recorded in earnings. Generally, our derivatives are subject to master netting arrangements, though we elect to present all derivative assets and liabilities on a gross basis within our consolidated balance sheets. |
Convertible Senior Notes | Convertible Senior Notes ASC 470, Debt , requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. ASC 470-20 requires that the initial proceeds from the sale of these notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by the Company at such time. The equity components of the convertible senior notes have been reflected within additional paid-in capital in our consolidated balance sheets. The resulting debt discount is being amortized over the period during which the convertible senior notes are expected to be outstanding (the maturity date) as additional non-cash interest expense. Upon settlement of convertible debt instruments, ASC 470-20 requires the issuer to allocate total settlement consideration, inclusive of transaction costs, amongst the liability and equity components of the instrument based on the fair value of the liability component immediately prior to repurchase. The difference between the settlement consideration allocated to the liability component and the net carrying value of the liability component, including unamortized debt issuance costs, is recognized as gain (loss) on extinguishment of debt in our consolidated statements of operations. The remaining settlement consideration allocated to the equity component is recognized as a reduction of additional paid-in capital in our consolidated balance sheets. |
Revenue Recognition | Revenue Recognition On January 1, 2018, new accounting rules regarding revenue recognition became effective for public companies with a calendar fiscal year. None of our significant revenue sources – interest income from loans and investment securities, loan servicing fees, and rental income – are within the scope of the new revenue recognition guidance. The revenue recognition guidance also included revisions to existing accounting rules regarding the determination of whether a company is acting as a principal or agent in an arrangement and accounting for sales of nonfinancial assets where the seller has continuing involvement. These additional revisions also did not materially impact the Company. Interest Income Interest income on performing loans and financial instruments is accrued based on the outstanding principal amount and contractual terms of the instrument. For loans where we do not elect the fair value option, origination fees and direct loan origination costs are also recognized in interest income over the loan term as a yield adjustment using the effective interest method. When we elect the fair value option, origination fees and direct loan costs are recorded directly in income and are not deferred. Discounts or premiums associated with the purchase of non-performing loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections. We cease accruing interest on non-performing loans at the earlier of (i) the loan becoming significantly past due or (ii) management concluding that a full recovery of all interest and principal is doubtful. Interest income on non-accrual loans in which management expects a full recovery of the loan’s outstanding principal balance is only recognized when received in cash. If a full recovery of principal is doubtful, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and management believes all future principal and interest will be received according to the contractual loan terms. For loans acquired with deteriorated credit quality, interest income is only recognized to the extent that our estimate of undiscounted expected principal and interest exceeds our investment in the loan. Accretable yield, if any, will be recognized as interest income on a level-yield basis over the life of the loan. Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss). Servicing Fees We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under‑performing and non‑performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met. Rental Income Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor. |
Securitizations, Sales and Financing Arrangements | Securitizations, Sales and Financing Arrangements We periodically sell our financial assets, such as commercial mortgage loans, residential mortgage loans, CMBS, RMBS and other assets. In connection with these transactions, we may retain or acquire senior or subordinated interests in the related assets. Gains and losses on such transactions are recognized in accordance with ASC 860, Transfers and Servicing , which is based on a financial components approach that focuses on control. Under this approach, after a transfer of financial assets that meets the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transferred control—an entity recognizes the financial assets it retains and any liabilities it has incurred, derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished. We determine the gain or loss on sale of the assets by allocating the carrying value of the sold asset between the sold asset and the interests retained based on their relative fair values, as applicable. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the sold asset. If the sold asset is being accounted for pursuant to the fair value option, there is no gain or loss. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with debt issuance are capitalized and amortized to interest expense over the terms of the respective debt agreements. Such costs are presented as a direct deduction from the carrying value of the related debt liability. |
Acquisition and Investment Pursuit Costs | Acquisition and Investment Pursuit Costs Costs incurred in connection with acquisitions of investments, loans and businesses, as well as in pursuing unsuccessful acquisitions and investments, are recorded within acquisition and investment pursuit costs in our consolidated statements of operations when incurred. Costs incurred in connection with acquisitions of real estate not accounted for as business combinations are capitalized within the purchase price. These costs reflect services performed by third parties and principally include due diligence and legal services. |
Share-Based Payments | Share‑Based Payments The fair value of the restricted stock (“RSAs”) or restricted stock units (“RSUs”) granted is recorded as expense on a straight‑line basis over the vesting period for the award, with an offsetting increase in stockholders’ equity. For grants to employees and directors, the fair value is determined based upon the stock price on the grant date. Effective July 1, 2018, we early adopted ASU 2018-07, Compensation – Stock Compensation (Topic 718) –Improvements to Nonemployee Share-Based Payment Accounting , which aligns the accounting for nonemployee share-based compensation with the existing accounting model for employee share based compensation. Prior to our adoption of ASU 2018-07, nonemployee share awards were recognized as an expense on a straight-line basis over the vesting period of the award with the fair value of the award remeasured at each vesting date. After our adoption of ASU 2018-07, nonemployee share awards continue to be recorded as expense on a straight-line basis over their vesting period, however, the fair value of the award will only be determined on the grant date and not remeasured at subsequent vesting dates, consistent with the accounting for employee share awards. For non-employee awards granted prior to our July 1, 2018 adoption date, the awards were remeasured at fair value as of our July 1, 2018 adoption date with no subsequent remeasurement. |
Foreign Currency Translation | Foreign Currency Translation Our assets and liabilities denominated in foreign currencies are translated into U.S. dollars using foreign currency exchange rates at the end of the reporting period. Income and expenses are translated at the average exchange rates for each reporting period. The effects of translating the assets, liabilities and income of our foreign investments held by entities with a U.S. dollar functional currency are included in foreign currency gain (loss) in the consolidated statements of operations or other comprehensive income (“OCI”) for debt securities available-for-sale for which the fair value option has not been elected. The effects of translating the assets, liabilities and income of our foreign investments held by entities with functional currencies other than the U.S. dollar are included in OCI. Realized foreign currency gains and losses and changes in the value of foreign currency denominated monetary assets and liabilities are included in the determination of net income and are reported as foreign currency gain (loss) in our consolidated statements of operations. |
Earnings Per Share | Earnings Per Share We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested RSUs and RSAs, (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our outstanding convertible senior notes (see Notes 11 and 18), and (iv) non-controlling interests that are redeemable with our common stock (see Note 17). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period. Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 17). Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the years ended December 31, 2018, 2017 and 2016, the two-class method resulted in the most dilutive EPS calculation. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, CMBS, RMBS, loan investments and interest receivable. We may place cash investments in excess of insured amounts with high quality financial institutions. We perform an ongoing analysis of credit risk concentrations in our investment portfolio by evaluating exposure to various counterparties, markets, underlying property types, contract terms, tenant mix and other credit metrics. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us 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, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our loans, investment securities and intangible assets, which has a significant impact on the amounts of interest income, credit losses (if any) and fair values that we record and/or disclose. In addition, the fair value of financial assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants would discount the expected cash flows. |
Recent Accounting Developments | Recent Accounting Developments On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which establishes a right-of-use model for lessee accounting which results in the recognition of most leased assets and lease liabilities on the balance sheet of the lessee. Lessor accounting was not significantly changed by this ASU. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018 by applying a modified retrospective approach. Early application is permitted. On July 30, 2018, the FASB issued ASU 2018-11, Leases (Topic 842) – Targeted Improvements , which provides an optional transition method of applying the new leases standard at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. It also provides lessors with a practical expedient to not separate non-lease revenue components from the associated lease component if certain conditions are met. On December 10, 2018, the FASB issued ASU 2018-20, Leases (Topic 842) – Narrow-Scope Improvements for Lessors , which makes amendments related to sales and similar taxes, certain lessor costs and recognition of variable payments for contracts with lease and non-lease components. We currently do not expect the application of these ASUs to have a material impact as the Company primarily acts as a lessor. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments , which mandates use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that current GAAP requires. The “expected loss” model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early application is permitted though no earlier than the first interim or annual period beginning after December 15, 2018. We do not intend to early adopt this ASU. Though we have not completed our assessment of this ASU, we expect the ASU to result in our recognition of higher levels of allowances for loan losses. Our assessment of the estimated amount of such increases remains in process. On January 26, 2017, the FASB issued ASU 2017-04, Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment , which simplifies the method applied for measuring impairment in cases where goodwill is impaired. This ASU specifies that goodwill impairment will be measured as the excess of the reporting unit’s carrying value (inclusive of goodwill) over its fair value, eliminating the requirement that all assets and liabilities of the reporting unit be remeasured individually in connection with measurement of goodwill impairment. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019 and is applied prospectively. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On August 28, 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance regarding the designation and measurement of designated hedging relationships. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2018. Early application is permitted. We do not expect the application of this ASU to materially impact the Company. On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework , which adds new disclosure requirements and modifies or eliminates existing disclosure requirements of ASC 820. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019. Early application is permitted. We do not expect the application of this ASU to materially impact the Company, as it only affects fair value disclosures. On October 31, 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable Interest Entities , which requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. This ASU is effective for annual periods, and interim periods therein, beginning after December 15, 2019. Early application is permitted. We are in the process of assessing the impact this ASU will have on the Company, but do not expect it to be material. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions and Divestitures | |
Schedule of measurement period adjustments | The following table summarizes the measurement period adjustment applied to the initial provisional acquisition date balance sheet from the September 19, 2018 acquisition date, as well as the identified assets acquired and liabilities assumed at the October 15, 2018 acquisition date (amounts in thousands): Initial Measurement September 19, 2018 Period October 15, 2018 Adjusted Assets acquired: Acquisition Adjustment Acquisition Amounts Loans held-for-investment $ 1,506,544 $ (3,189) $ 146,275 $ 1,649,630 Loans held-for-sale 319,879 (169) — 319,710 Investment securities 65,060 — — 65,060 Accrued interest receivable 12,566 427 850 13,843 Total identifiable assets acquired 1,904,049 (2,931) 147,125 2,048,243 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,327 490 — 8,817 Derivative liabilities 282 — — 282 Total liabilities assumed 8,609 490 — 9,099 Net assets acquired $ 1,895,440 $ (3,421) $ 147,125 $ 2,039,144 |
Summary of assets acquired and liabilities assumed | The following table summarizes the identified assets acquired and liabilities assumed as of the respective acquisition dates, including the effect of the measurement period adjustments set forth above (amounts in thousands): 2018 2017 2016 Infrastructure REIS Equity Medical Office Woodstar I REIS Equity Assets acquired: Lending Segment Portfolio Portfolio Portfolio Portfolio Cash and cash equivalents $ — $ — $ — $ 6,254 $ — Loans held-for-investment 1,649,630 — — — — Loans held-for-sale 319,710 — — — — Investment securities 65,060 — — — — Properties — 38,770 678,727 245,430 124,479 Intangible assets — 11,955 85,508 8,174 24,836 Accrued interest receivable 13,843 — — — — Other assets — 85 5,233 16,417 2,978 Total identifiable assets acquired 2,048,243 50,810 769,468 276,275 152,293 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 1,516 10,811 19,666 7,216 Derivative liabilities 282 — — — — Secured financing agreements — — — 150,763 — Total liabilities assumed 9,099 1,516 10,811 170,429 7,216 Non-controlling interests — — — — 6,462 Net assets acquired $ 2,039,144 $ 49,294 $ 758,657 $ 105,846 $ 138,615 |
Schedule of the determination of goodwill | Goodwill represents the excess of the purchase price over the fair value of the underlying assets acquired and liabilities assumed. This determination of goodwill resulting from the Infrastructure Lending Segment acquisition is as follows (amounts in thousands): 2018 Infrastructure Lending Segment Purchase price $ 2,158,553 Preliminary estimate of the fair value of net assets acquired 2,039,144 Goodwill $ 119,409 |
Schedule of pro forma revenue and net income | The unaudited pro forma revenues and net income attributable to the Company for the years ended December 31, 2018 and 2017, assuming the Infrastructure Lending Segment was acquired on January 1, 2017, are as follows (amounts in thousands, except per share amounts): For the Year Ended December 31, (Unaudited) 2018 2017 Revenues $ 1,182,892 $ 966,636 Net income attributable to STWD 392,505 395,150 Net income per share - Basic 1.47 1.51 Net income per share - Diluted 1.44 1.50 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash. | |
Summary of restricted cash | A summary of our restricted cash as of December 31, 2018 and 2017 is as follows (amounts in thousands): As of December 31, 2018 2017 Cash restricted by lender $ 175,659 $ — Cash collateral for derivative financial instruments 37,245 26,256 Funds held on behalf of borrowers and tenants 12,838 10,918 Other restricted cash 22,299 11,651 $ 248,041 $ 48,825 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans | |
Summary of investments in mortgages and loans by subordination class | The following tables summarize our investments in mortgages and loans by subordination class as of December 31, 2018 and 2017 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2018 Value Amount Coupon (years)(1) First mortgages (2) $ 6,607,117 $ 6,631,236 6.9 % 2.0 First priority infrastructure loans 1,456,779 1,465,828 5.7 % 4.5 Subordinated mortgages (3) 52,778 53,996 8.9 % 3.7 Mezzanine loans (2) 393,832 394,739 10.6 % 2.0 Other 61,001 64,658 8.2 % 2.5 Total loans held-for-investment 8,571,507 8,610,457 Loans held-for-sale, fair value option, residential 623,660 609,571 6.3 % 6.6 Loans held-for-sale, commercial ($47,622 under fair value option) 94,117 94,916 5.4 % 6.2 Loans held-for-sale, infrastructure 469,775 486,909 3.5 % 0.3 Loans transferred as secured borrowings 74,346 74,692 7.1 % 1.3 Total gross loans 9,833,405 9,876,545 Loan loss allowance (loans held-for-investment) (39,151) — Total net loans $ 9,794,254 $ 9,876,545 December 31, 2017 First mortgages (2) $ 5,818,804 $ 5,843,623 6.2 % 2.0 Subordinated mortgages (3) 177,115 177,386 10.8 % 1.9 Mezzanine loans (2) 545,299 545,355 11.0 % 1.1 Other 25,607 29,320 8.5 % 3.9 Total loans held-for-investment 6,566,825 6,595,684 Loans held-for-sale, fair value option, residential 613,287 594,105 6.2 % 5.4 Loans held-for-sale, fair value option, commercial 132,456 132,393 4.6 % 10.0 Loans transferred as secured borrowings 74,403 75,000 6.2 % 2.3 Total gross loans 7,386,971 7,397,182 Loan loss allowance (loans held-for-investment) (4,330) — Total net loans $ 7,382,641 $ 7,397,182 (1) Represents the WAL of each respective group of loans as of the respective balance sheet date. The WAL of each individual loan is calculated using amounts and timing of future principal payments, as projected at origination or acquisition. (2) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.0 billion and $851.1 million being classified as first mortgages as of December 31, 2018 and 2017, respectively. (3) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan. |
Schedule of internal rating categories | The rating categories for commercial real estate loans generally include the characteristics described below, but these are utilized as guidelines and therefore not every loan will have all of the characteristics described in each category: Rating Characteristics 1 Sponsor capability and financial condition—Sponsor is highly rated or investment grade or, if private, the equivalent thereof with significant management experience. Loan collateral and performance relative to underwriting—The collateral has surpassed underwritten expectations. Quality and stability of collateral cash flows—Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. Loan structure—LTV does not exceed 65%. The loan has structural features that enhance the credit profile. 2 Sponsor capability and financial condition—Strong sponsorship with experienced management team and a responsibly leveraged portfolio. Loan collateral and performance relative to underwriting—Collateral performance equals or exceeds underwritten expectations and covenants and performance criteria are being met or exceeded. Quality and stability of collateral cash flows—Occupancy is stabilized with a diverse tenant mix. Loan structure—LTV does not exceed 70% and unique property risks are mitigated by structural features. 3 Sponsor capability and financial condition—Sponsor has historically met its credit obligations, routinely pays off loans at maturity, and has a capable management team. Loan collateral and performance relative to underwriting—Property performance is consistent with underwritten expectations. Quality and stability of collateral cash flows—Occupancy is stabilized, near stabilized, or is on track with underwriting. Loan structure—LTV does not exceed 80%. 4 Sponsor capability and financial condition—Sponsor credit history includes missed payments, past due payment, and maturity extensions. Management team is capable but thin. Loan collateral and performance relative to underwriting—Property performance lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. A sale of the property may be necessary in order for the borrower to pay off the loan at maturity. Quality and stability of collateral cash flows—Occupancy is not stabilized and the property has a large amount of rollover. Loan structure—LTV is 80% to 90%. 5 Sponsor capability and financial condition—Credit history includes defaults, deeds‑in‑lieu, foreclosures, and/or bankruptcies. Loan collateral and performance relative to underwriting—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. Sale proceeds would not be sufficient to pay off the loan at maturity. Quality and stability of collateral cash flows—The property has material vacancy and significant rollover of remaining tenants. Loan structure—LTV exceeds 90%. |
Schedule of risk ratings by class of loan | As of December 31, 2018, the risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans First Priority Transferred % of Risk Rating First Infrastructure Subordinated Mezzanine As Secured Total Category Mortgages Loans Mortgages Loans Other Borrowings Total Loans 1 $ 6,538 $ — $ — $ — $ 23,767 $ — $ 30,305 0.3 % 2 3,356,342 — 7,392 111,466 — 74,346 3,549,546 36.1 % 3 2,987,296 — 33,410 282,366 31,039 — 3,334,111 33.9 % 4 63,094 — — — — — 63,094 0.6 % 5 — — — — — — — — % N/A 193,847 (1) 1,456,779 (2) 11,976 (1) — 6,195 (1) — 1,668,797 17.0 % $ 6,607,117 $ 1,456,779 $ 52,778 $ 393,832 $ 61,001 $ 74,346 8,645,853 Loans held-for-sale 1,187,552 12.1 % Total gross loans $ 9,833,405 100.0 % (1) Represents loans individually evaluated for impairment in accordance with ASC 310-10. (2) First priority infrastructure loans were not risk rated as of December 31, 2018 as the Company is in the process of developing a risk rating policy for these loans. As of December 31, 2017, the risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows (dollars in thousands): Balance Sheet Classification Loans Held-For-Investment Loans Transferred % of Risk Rating First Subordinated Mezzanine As Secured Total Category Mortgages Mortgages Loans Other Borrowings Total Loans 1 $ 2,003 $ — $ — $ 20,267 $ — $ 22,270 0.3 % 2 2,462,268 11,927 137,803 — — 2,611,998 35.4 % 3 3,183,592 165,188 407,496 5,340 74,403 3,836,019 51.9 % 4 120,479 — — — — 120,479 1.6 % 5 50,462 — — — — 50,462 0.7 % N/A — — — — — — — % $ 5,818,804 $ 177,115 $ 545,299 $ 25,607 $ 74,403 6,641,228 Loans held-for-sale 745,743 10.1 % Total gross loans $ 7,386,971 100.0 % |
Schedule of activity in allowance for loan losses | The following table presents the activity in our allowance for loan losses (amounts in thousands): For the year ended December 31, 2018 2017 2016 Allowance for loan losses at January 1 $ 4,330 $ 9,788 $ 6,029 Provision for (reversal of) loan losses (3,384) (5,458) 3,759 Provision for impaired loans 38,205 — — Charge-offs — — — Recoveries — — — Allowance for loan losses at December 31 $ 39,151 $ 4,330 $ 9,788 Recorded investment in loans related to the allowance for loan loss $ $ 170,941 $ 516,450 |
Schedule of activity in loan portfolio | The activity in our loan portfolio was as follows (amounts in thousands): For the year ended December 31, 2018 2017 2016 Balance at January 1 $ 7,382,641 $ 5,946,274 $ 6,263,517 Acquisition of Infrastructure Lending Portfolio 1,969,340 — — Acquisitions/originations/additional funding 6,723,144 5,500,539 4,502,842 Capitalized interest (1) 63,047 74,339 80,992 Basis of loans sold (2) (3,082,347) (1,634,717) (2,266,901) Loan maturities/principal repayments (3,272,666) (2,658,522) (2,742,462) Discount accretion/premium amortization 38,099 39,084 48,384 Changes in fair value 40,522 66,987 74,251 Unrealized foreign currency translation (loss) gain (32,341) 42,356 (47,906) Change in loan loss allowance, net (34,821) 5,458 (3,759) Transfer to/from other asset classifications (364) 843 37,316 (3) Balance at December 31 $ 9,794,254 $ 7,382,641 $ 5,946,274 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 12 for additional disclosure on these transactions. Primarily represents commercial mortgage loans acquired from CMBS trusts which are consolidated as VIEs on our balance sheet. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of investment securities | Investment securities were comprised of the following as of December 31, 2018 and 2017 (amounts in thousands): Carrying Value as of December 31, 2018 2017 RMBS, available-for-sale $ 209,079 $ 247,021 RMBS, fair value option (1) 87,879 — CMBS, fair value option (1) 1,157,508 1,024,143 Held-to-maturity (“HTM”) debt securities, amortized cost 644,149 433,468 Equity security, fair value 11,893 13,523 Subtotal — Investment securities 2,110,508 1,718,155 VIE eliminations (1) (1,204,040) (999,952) Total investment securities $ 906,468 $ 718,203 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. |
Schedule of purchases, sales and principal collections for all investment securities | Purchases, sales and principal collections for all investment securities were as follows (amounts in thousands): RMBS, RMBS, fair CMBS, fair HTM Equity Securitization available-for-sale value option value option Securities Security VIEs (1) Total Year Ended December 31, 2018 Purchases $ — $ 90,982 $ 323,071 $ 463,810 $ — $ (385,463) $ 492,400 Acquisition of Infrastructure Lending Portfolio — — — 65,060 — — 65,060 Sales 13,264 — 105,637 — — (102,474) 16,427 Principal collections 34,763 1,439 114,545 327,207 — (95,030) 382,924 Year Ended December 31, 2017 Purchases $ 7,433 $ — $ 125,776 $ 79,163 $ — $ (113,978) $ 98,394 Sales — — 37,184 — — (25,605) 11,579 Principal collections 40,635 — 109,354 182,919 — (100,115) 232,793 Year Ended December 31, 2016 Purchases $ 98,035 $ — $ 167,976 $ 204,730 $ — $ (110,400) $ 360,341 Sales — — 54,453 — — (35,728) 18,725 Principal collections 43,445 — 117,059 6,910 — (58,624) 108,790 (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. |
Summary of investments in available-for-sale RMBS and single-borrower CMBS where the fair value option has not been elected | The tables below summarize various attributes of our investments in available‑for‑sale RMBS as of December 31, 2018 and 2017 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Purchase Recorded Gross Gross Net Amortized Credit Amortized Non-Credit Unrealized Unrealized Fair Value Cost OTTI Cost OTTI Gains Losses Adjustment Fair Value December 31, 2018 RMBS $ 165,461 $ (9,897) $ 155,564 $ (31) $ 53,546 $ — $ 53,515 $ December 31, 2017 RMBS $ 199,029 $ (9,897) $ 189,132 $ (94) $ 58,011 $ (28) $ 57,889 $ 247,021 Weighted Average Coupon (1) Weighted Average WAL December 31, 2018 RMBS 3.7 % CCC- 6.0 December 31, 2017 RMBS 2.8 % B 6.4 (1) Calculated using the December 31, 2018 and 2017 one-month LIBOR rate of 2.503% and 1.564%, respectively, for floating rate securities. (2) Represents the WAL of each respective group of securities as of the respective balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. |
Reconciliation of aggregate principal balance to amortized cost for RMBS and single-borrower CMBS, excluding CMBS where the fair value option is elected | The following table contains a reconciliation of aggregate principal balance to amortized cost for our RMBS as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, 2018 2017 Principal balance $ 309,497 $ 366,711 Accretable yield (54,779) (55,712) Non-accretable difference (99,154) (121,867) Total discount (153,933) (177,579) Amortized cost $ 155,564 $ 189,132 |
Schedule of changes to accretable yield and non-accretable difference for RMBS and single-borrower CMBS, excluding CMBS where the fair value option is elected | The following table discloses the changes to accretable yield and non‑accretable difference for our RMBS during the years ended December 31, 2018 and 2017 (amounts in thousands): Non-Accretable Accretable Yield Difference Balance as of January 1, 2017 $ 64,290 $ 126,607 Accretion of discount (13,457) — Principal write-downs, net — (5,004) Purchases 311 4,723 Sales — — OTTI 109 — Transfer to/from non-accretable difference 4,459 (4,459) Balance as of December 31, 2017 55,712 121,867 Accretion of discount (10,932) — Principal write-downs, net — (3,682) Purchases — — Sales (9,032) — OTTI — — Transfer to/from non-accretable difference 19,031 (19,031) Balance as of December 31, 2018 $ 54,779 $ 99,154 |
Schedule of gross unrealized losses and estimated fair value of securities in an unrealized loss position, excluding CMBS where the fair value option is elected | The following table presents the gross unrealized losses and estimated fair value of any available‑for‑sale securities that were in an unrealized loss position as of December 31, 2018 and 2017, and for which OTTIs (full or partial) have not been recognized in earnings (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a loss less than loss greater than loss less than loss greater than 12 months 12 months 12 months 12 months As of December 31, 2018 RMBS $ 2,148 $ — $ (31) $ — As of December 31, 2017 RMBS $ 10,321 $ 643 $ (99) $ (23) |
Held-to-maturity | |
Summary of investments in HTM securities | The table below summarizes unrealized gains and losses of our investments in HTM debt securities as of December 31, 2018 and 2017 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value December 31, 2018 CMBS $ 408,556 $ 2,435 $ (3,349) $ 407,642 Infrastructure bonds 60,768 178 (168) 60,778 Preferred interests 174,825 703 — 175,528 Total $ 644,149 $ 3,316 $ (3,517) $ 643,948 December 31, 2017 CMBS $ $ 2,002 $ (7,779) $ 407,333 Preferred interests 20,358 647 — 21,005 Total $ 433,468 $ 2,649 $ (7,779) $ 428,338 |
Summary of maturities of preferred equity interests in limited liability companies that own commercial real estate | The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2018 (amounts in thousands): Infrastructure Preferred CMBS Bonds Interests Total Less than one year $ 75,313 $ — $ — $ 75,313 One to three years 305,642 12,889 — 318,531 Three to five years 27,601 — 174,825 202,426 Thereafter — 47,879 — 47,879 Total $ 408,556 $ 60,768 $ 174,825 $ 644,149 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Properties | |
Summary of properties | The table below summarizes our properties held as of December 31, 2018 and December 31, 2017 (dollars in thousands): December 31, Depreciable Life 2018 2017 Property Segment Land and land improvements 0 – 15 years $ 648,972 $ 585,915 Buildings and building improvements 5 – 45 years 1,980,283 Furniture & fixtures 3 – 7 years 46,048 31,028 Investing and Servicing Segment Land and land improvements 0 – 15 years 82,332 86,711 Buildings and building improvements 3 – 40 years 213,010 212,094 Furniture & fixtures 2 – 5 years 2,158 1,036 Properties, cost 2,972,803 Less: accumulated depreciation (187,913) (107,569) Properties, net $ 2,784,890 $ |
Summary of future rental payments due from tenants under existing non-cancellable operating leases | Future rental payments due to us from tenants under existing non-cancellable operating leases for each of the next five years and thereafter are as follows (in thousands): 2019 $ 211,718 2020 129,825 2021 123,474 2022 113,393 2023 94,771 Thereafter 826,278 Total $ 1,499,459 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investment in Unconsolidated Entities | |
Summary of investments in unconsolidated entities | The table below summarizes our investments in unconsolidated entities as of December 31, 2018 and 2017 (dollars in thousands): Participation / Carrying value as of December 31, Ownership % (1) 2018 2017 Equity method: Retail Fund (see Note 16) 33% $ 114,362 $ 110,704 Investor entity which owns equity in an online real estate company 50% 9,372 9,312 Equity interests in commercial real estate 50% 6,294 (2) 23,192 Equity interest in and advances to a residential mortgage originator N/A 9,082 (3) 7,742 Various 25% - 50% 6,984 3,538 146,094 154,488 Cost method: Equity interest in a servicing and advisory business 6% 6,207 12,234 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 3% 10,239 9,556 25,671 31,015 $ 171,765 $ 185,503 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) In March 2018, our preferred equity investment in a portfolio of student housing properties was redeemed in full for cash proceeds of $16.7 million. (3) Includes a $2.0 million subordinated loan the Company funded in June 2018. Refer to Note 16 for further discussion. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangibles | |
Summary of intangibles assets | The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, 2018 As of December 31, 2017 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 20,557 $ — $ 20,557 $ 30,759 $ — $ 30,759 In-place lease intangible assets 198,220 (100,873) 97,347 187,816 (65,351) 122,465 Favorable lease intangible assets 36,895 (9,766) 27,129 37,231 (7,363) 29,868 Total net intangible assets $ 255,672 $ (110,639) $ 145,033 $ 255,806 $ (72,714) $ 183,092 |
Summary of activity within intangible assets | The following table summarizes the activity within intangible assets for the years ended December 31, 2018 and 2017 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2017 $ 55,082 136,877 27,289 219,248 Acquisition of Woodstar II Portfolio properties — 4,155 — 4,155 Acquisition of additional REIS Equity Portfolio properties — 6,524 5,431 11,955 Amortization — (26,850) (3,930) (30,780) Sales — (722) (109) (831) Foreign exchange gain — 4,404 1,177 5,581 Impairment (1) — (1,014) (9) (1,023) Changes in fair value due to changes in inputs and assumptions (24,323) — — (24,323) Measurement period adjustments — (909) 19 (890) Balance as of December 31, 2017 30,759 $ 122,465 $ 29,868 183,092 Acquisition of additional Woodstar II Portfolio properties — 10,792 — 10,792 Acquisition of additional REIS Equity Portfolio properties — 7,342 2,687 10,029 Amortization — (39,830) (4,046) (43,876) Sales — (1,791) (1,036) (2,827) Foreign exchange loss — (1,270) (344) (1,614) Impairment (1) — (361) — (361) Changes in fair value due to changes in inputs and assumptions (10,202) — — (10,202) Balance as of December 31, 2018 $ 20,557 $ 97,347 $ 27,129 $ 145,033 (1) Impairment of intangible lease assets is recognized within other expense in our consolidated statements of operations. |
Schedule of future amortization expense | The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2019 $ 23,250 2020 17,491 2021 15,047 2022 12,241 2023 8,996 Thereafter 47,451 Total $ 124,476 |
Secured Financing Agreements (T
Secured Financing Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Secured Financing Agreements | |
Summary of secured financing agreements | The following table is a summary of our secured financing agreements in place as of December 31, 2018 and 2017 (dollars in thousands): Carrying Value at Current Extended Pledged Asset Maximum December 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2018 2017 Lender 1 Repo 1 (b) (b) LIBOR + 1.60% to 5.75% $ 1,678,448 $ 2,000,000 $ 1,279,979 $ 1,137,654 Lender 2 Repo 1 Apr 2020 Apr 2023 LIBOR + 1.50% to 2.50% 542,255 900,000 (c) 384,791 238,428 Lender 3 Repo 1 N/A N/A N/A — — — 75,291 Lender 4 Repo 2 May 2021 May 2023 LIBOR + 2.00% to 3.25% 1,141,153 1,000,000 552,345 215,372 Lender 6 Repo 1 Aug 2021 N/A LIBOR + 2.00% to 2.75% 655,536 600,000 507,545 494,353 Lender 6 Repo 2 Oct 2022 Oct 2023 GBP LIBOR + 2.75%, EURIBOR + 2.25% 386,670 422,090 312,437 332,815 Lender 7 Repo 1 Sep 2021 Sep 2023 LIBOR + 1.75% to 2.25% 89,038 250,000 71,720 — Lender 9 Repo 1 N/A N/A N/A — — — 65,762 Lender 10 Repo 1 May 2021 May 2023 LIBOR + 1.50% to 2.75% 200,440 164,840 160,480 77,800 Lender 11 Repo 1 Jun 2019 Jun 2020 LIBOR + 2.10% — 200,000 — — Lender 11 Repo 2 Sep 2019 Sep 2023 LIBOR + 2.00% to 2.50% 355,606 500,000 270,690 — Lender 12 Repo 1 Jun 2021 Jun 2024 LIBOR + 2.10% to 2.45% 57,368 250,000 43,500 — Lender 13 Repo 1 (d) (d) LIBOR + 1.50% 18,425 200,000 14,824 — Lender 7 Secured Financing Feb 2021 Feb 2023 LIBOR + 2.25% (e) 93,085 650,000 (f) — — Lender 8 Secured Financing Aug 2019 N/A LIBOR + 4.00% — — — 15,617 Conduit Repo 2 Nov 2019 Nov 2020 LIBOR + 2.25% 47,622 200,000 35,034 40,075 Conduit Repo 3 Feb 2020 Feb 2021 LIBOR + 2.10% — 150,000 — 26,895 MBS Repo 1 (g) (g) N/A — — — 6,510 MBS Repo 2 Dec 2020 N/A LIBOR + 1.55% to 1.75% 222,333 159,202 159,202 222,672 MBS Repo 3 (h) (h) LIBOR + 1.30% to 1.85% 691,963 427,942 427,942 224,150 MBS Repo 4 (i) N/A LIBOR + 1.70% 155,063 110,000 13,824 77,318 MBS Repo 5 Dec 2028 Jun 2029 4.21% 57,619 150,000 55,437 — Investing and Servicing Segment Property Mortgages May 2020 to N/A Various 263,725 242,499 219,237 177,411 Ireland Mortgage Oct 2025 N/A 1.93% 460,581 362,854 362,854 349,900 Woodstar I Mortgages Nov 2025 to N/A 3.72% to 3.97% 346,402 276,748 276,748 276,748 Woodstar I Government Financing Mar 2026 to Jun 2049 N/A 1.00% to 5.00% 195,903 131,179 131,179 133,418 Woodstar II Mortgages Jan 2028 to Apr 2028 N/A 3.81% to 3.85% 530,299 417,669 417,669 116,745 Woodstar II Government Financing Jun 2030 to Aug 2052 N/A 1.00% to 3.19% 39,126 25,311 25,311 — Medical Office Mortgages Dec 2021 Dec 2023 LIBOR + 2.50% 680,335 524,499 492,828 497,613 Master Lease Mortgages Oct 2027 N/A 4.38% 333,107 194,900 194,900 265,900 Infrastructure Lending Facility Sep 2021 Sep 2022 Various 1,905,469 2,020,971 1,551,148 — Term Loan A Dec 2020 Dec 2021 LIBOR + 2.25% (e) 912,857 300,000 300,000 300,000 Revolving Secured Financing Dec 2020 Dec 2021 LIBOR + 2.25% (e) — 100,000 — — FHLB Feb 2021 N/A Various 623,660 500,000 500,000 445,000 $ 12,684,088 $ 13,430,704 8,761,624 5,813,447 Unamortized net (discount) premium (963) 2,559 Unamortized deferred financing costs (77,096) (42,950) $ 8,683,565 $ 5,773,056 (a) Subject to certain conditions as defined in the respective facility agreement. (b) Maturity date for borrowings collateralized by loans is September 2019 with an additional extension option to September 2021. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions and not to exceed September 2025. (c) The initial maximum facility size of $600.0 million may be increased to $900.0 million, subject to certain conditions. (d) Maturity date for borrowings collateralized by loans is May 2020 with an additional extension option to August 2021. Borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (e) Subject to borrower’s option to choose alternative benchmark based rates pursuant to the terms of the credit agreement. (f) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (g) Facility carries a rolling 11-month term which may reset monthly with the lender’s consent. This facility carries no maximum facility size. (h) Facility carries a rolling 12-month term which may reset monthly with the lender’s consent. Current maturity is December 2019. This facility carries no maximum facility size. Amounts reflect the outstanding balance as of December 31, 2018. (i) The date that is 270 days after the buyer delivers notice to seller, subject to a maximum date of May 2020. |
Schedule of five-year principal repayments for secured financings | The amount reflected in each period includes principal repayments on our credit facilities that would be required if (i) we received the repayments that we expect to receive on the investments that have been pledged as collateral under the credit facilities, as applicable, and (ii) the credit facilities that are expected to have amounts outstanding at their current maturity dates are extended where extension options are available to us (amounts in thousands): Repurchase Other Secured Agreements Financing Total 2019 $ 565,219 $ 268,813 $ 834,032 2020 483,962 753,710 1,237,672 2021 776,519 843,872 1,620,391 2022 784,940 940,360 1,725,300 2023 1,546,055 564,789 2,110,844 Thereafter 133,055 1,100,330 1,233,385 Total $ 4,289,750 $ 4,471,874 $ 8,761,624 |
Schedule of outstanding balance of repurchase agreements related to the following asset collateral classes | The following table sets forth our outstanding balance of repurchase agreements related to the following asset collateral classes as of December 31, 2018 and 2017 (amounts in thousands): As of December 31, Class of Collateral 2018 2017 Loans held-for-investment $ 3,567,786 $ 2,637,475 Loans held-for-sale 65,559 66,970 Investment securities 656,405 530,650 $ 4,289,750 $ 3,235,095 |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Unsecured Senior Notes | |
Schedule of unsecured convertible senior notes outstanding | The following table is a summary of our unsecured senior notes outstanding as of December 31, 2018 and 2017 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2018 2017 2018 Convertible Notes N/A N/A N/A N/A — 369,981 2019 Convertible Notes 4.00 % 5.04 % 1/15/2019 years 77,969 341,363 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 years 500,000 — 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 years 500,000 500,000 Total principal amount 2,027,969 2,161,344 Unamortized discount—Convertible Notes (4,644) (11,186) Unamortized discount—Senior Notes (16,416) (16,654) Unamortized deferred financing costs (8,078) (8,269) Carrying amount of debt components $ 1,998,831 $ 2,125,235 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes $ 3,755 $ 31,638 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our convertible senior notes, the value of which reduced the initial liability and was recorded in additional paid‑in‑capital. |
Schedule of conversion attributes on Convertible Notes outstanding | The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2018 (amounts in thousands, except rates): December 31, 2018 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2018 2017 2016 2018 Notes N/A N/A — 541 1,097 2019 Notes 52.0131 $ 19.23 91 1,358 1,600 2023 Notes 38.5959 $ 25.91 — — — 91 1,899 2,697 (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of Convertible Notes converted, as adjusted in accordance with the indentures governing the Convertible Notes (including the applicable supplemental indentures). (2) As of December 31, 2018, 2017 and 2016, the market price of the Company’s common stock was $19.71, $21.35 and $21.95 per share, respectively. (3) The conversion spread value represents the portion of the Convertible Notes that are “in-the-money”, representing the value that would be delivered to investors in shares upon an assumed conversion. |
Loan Securitization_Sale Acti_2
Loan Securitization/Sale Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investing and Servicing Segment | |
Summary of fair value and par value of loans sold and amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with the loans | The following summarizes the fair value and par value of loans sold from our conduit platform, as well as the amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with these loans for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands): Repayment of repurchase Face Amount Proceeds agreements For the Year Ended December 31, 2018 $ 1,517,599 $ 1,563,433 $ 1,147,316 2017 1,517,368 1,582,050 1,152,938 2016 1,798,215 1,884,380 1,170,230 |
Commercial and Residential Lending Segment | |
Summary of loans sold and loans transferred as secured borrowings by the Lending segment net of expenses | The following table summarizes our loans sold and loans transferred as secured borrowings by the Commercial and Residential Lending Segment net of expenses (amounts in thousands): Loan Transfers Loan Transfers Accounted for as Sales Accounted for as Secured Commercial Residential Borrowings For the Year Ended December 31, Face Amount Proceeds Face Amount Proceeds Face Amount Proceeds 2018 $ 840,400 $ 835,849 $ 660,865 $ 683,556 $ — $ — 2017 55,470 52,609 — — 75,000 74,098 2016 386,389 382,881 — — — — |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivatives and Hedging Activity | |
Summary of foreign exchange ("Fx") forwards, interest rate swaps, interest rate caps and credit index instruments | The following table summarizes our non-designated derivatives as of December 31, 2018 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") 62 287,666 EUR January 2019 – October 2022 Fx contracts – Sell Pounds Sterling ("GBP") 147 239,772 GBP January 2019 – October 2022 Fx contracts – Sell Canadian dollar ("CAD") 16 9,055 CAD January 2019 – October 2022 Fx contracts – Sell Australian dollar ("AUD") 4 8,122 AUD January 2019 – October 2019 Interest rate swaps – Paying fixed rates 17 1,027,768 USD April 2019 – December 2028 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021 – March 2025 Interest rate caps 2 294,000 EUR May 2020 Interest rate caps 10 127,536 USD October 2019 – December 2021 Credit index instruments 3 24,000 USD November 2054 – September 2058 Forward loan purchase commitments 1 150,000 USD February 2019 Interest rate swap guarantees 10 685,271 USD March 2019 – June 2025 Interest rate swap guarantees 1 11,091 GBP December 2024 Interest rate swap guarantees 1 91,374 CAD June 2045 Total 276 |
Schedule of fair values of derivative financial instruments | The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2018 and 2017 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) in a Liability Position (2) as of December 31, as of December 31, 2018 2017 2018 2017 Derivatives designated as hedging instruments: Interest rate swaps $ — $ 25 $ — $ — Total derivatives designated as hedging instruments — 25 — — Derivatives not designated as hedging instruments: Interest rate contracts 30,791 27,234 14,457 2,781 Interest rate swap guarantees — — 396 — Foreign exchange contracts 21,346 6,400 562 33,419 Credit index instruments 554 239 — — Total derivatives not designated as hedging instruments 52,691 33,873 15,415 36,200 Total derivatives $ 52,691 $ 33,898 $ 15,415 $ 36,200 (1) Classified as derivative assets in our consolidated balance sheets. (2) Classified as derivative liabilities in our consolidated balance sheets. |
Schedule of effect of derivative financial instruments on the consolidated statements of operations and of comprehensive income | The tables below present the effect of our derivative financial instruments on the consolidated statements of operations and of comprehensive income for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands): Gain (Loss) Gain (Loss) Reclassified Gain (Loss) Recognized from AOCI Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain (Loss) For the Year Ended December 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2018 $ 8 $ 33 $ — Interest expense 2017 $ 54 $ 3 $ — Interest expense 2016 $ (284) $ (323) $ — Interest expense |
Schedule of Gain / (Loss) recognized in Income for Derivatives Not Designated as Hedging Instruments | Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Year Ended December 31, as Hedging Instruments Recognized in Income 2018 2017 2016 Interest rate contracts Gain (loss) on derivative financial instruments $ (1,593) $ (5,165) $ 21,741 Interest rate swap guarantees Gain (loss) on derivative financial instruments (114) — — Foreign exchange contracts Gain (loss) on derivative financial instruments 36,040 (65,645) 51,818 Credit index instruments Gain (loss) on derivative financial instruments 270 (1,722) (2,825) $ 34,603 $ (72,532) $ 70,734 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Offsetting Assets and Liabilities | |
Schedule of offsetting assets and liabilities | The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210‑20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (iv) Gross Amounts Not Offset in the Statement (ii) (iii) = (i) - (ii) of Financial Position Gross Amounts Net Amounts Cash (i) Offset in the Presented in Collateral Gross Amounts Statement of the Statement of Financial Received / (v) = (iii) - (iv) Recognized Financial Position Financial Position Instruments Pledged Net Amount As of December 31, 2018 Derivative assets $ 52,691 $ — $ 52,691 $ 1,408 $ — $ 51,283 Derivative liabilities $ 15,415 $ — $ 15,415 $ 1,408 $ 8,658 $ 5,349 Repurchase agreements 4,289,750 — 4,289,750 4,289,750 — — $ 4,305,165 $ — $ 4,305,165 $ 4,291,158 $ 8,658 $ 5,349 As of December 31, 2017 Derivative assets $ 33,898 $ — $ 33,898 $ 6,523 $ — $ 27,375 Derivative liabilities $ 36,200 $ — $ 36,200 $ 6,523 $ 15,333 $ 14,344 Repurchase agreements 3,235,095 — 3,235,095 3,235,095 — — $ 3,271,295 $ — $ 3,271,295 $ 3,241,618 $ 15,333 $ 14,344 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity and Non-Controlling Interests | |
Schedule of issued common stock | Shares issued Price Proceeds Issuance date (in thousands) per share (in thousands) 12/9/16 20,470 $ 21.93 $ 448,825 |
Schedule of dividends declared by board of directors | Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 11/9/18 12/31/18 12/28/18 1/15/19 $ 0.48 Quarterly 8/8/18 9/28/18 9/27/18 10/15/18 0.48 Quarterly 5/4/18 6/29/18 6/28/18 7/13/18 0.48 Quarterly 2/28/18 3/30/18 3/28/18 4/13/18 0.48 Quarterly 11/8/17 12/29/17 12/28/17 1/12/18 0.48 Quarterly 8/9/17 9/29/17 9/28/17 10/13/17 0.48 Quarterly 5/9/17 6/30/17 6/28/17 7/14/17 0.48 Quarterly 2/23/17 3/31/17 3/29/17 4/14/17 0.48 Quarterly 11/2/16 12/30/16 12/28/16 1/13/17 0.48 Quarterly 8/4/16 9/30/16 9/28/16 10/17/16 0.48 Quarterly 5/9/16 6/30/16 6/28/16 7/15/16 0.48 Quarterly 2/25/16 3/31/16 3/29/16 4/15/16 0.48 Quarterly |
Summary of share awards granted under the Manager Equity Plan | The table below summarizes our share awards granted or vested under the Manager Equity Plan and the 2017 Manager Equity Plan during the years ended December 31, 2018, 2017 and 2016 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period April 2018 RSU 775,000 $ 16,329 3 years March 2017 RSU 1,000,000 22,240 3 years May 2015 RSU 675,000 16,511 3 years January 2014 RSU 489,281 14,776 3 years January 2014 RSU 2,000,000 55,420 3 years |
Schedule of common stock issued as incentive compensation under the Management Agreement | Timing of Issuance Shares of Common Stock Issued Price per share November 2018 98,026 $ 21.94 August 2018 131,179 21.67 May 2018 224,071 21.49 March 2018 545,641 20.13 November 2017 239,757 21.64 August 2017 98,061 22.10 May 2017 123,478 21.83 February 2017 418,016 22.84 November 2016 144,093 22.06 August 2016 65,211 21.99 May 2016 117,083 19.64 March 2016 606,166 18.02 |
Summary of share-based compensation expenses | The following table summarizes our share‑based compensation expenses during the years ended December 31, 2018, 2017 and 2016 (in thousands): For the year ended December 31, 2018 2017 2016 Management fees: Manager incentive fee $ 20,700 $ 21,072 $ 16,423 2017 Manager Equity Plan (1) 12,573 10,423 21,484 33,273 31,495 37,907 General and administrative: 2017 Equity Plan (1) 10,185 7,728 11,163 10,185 7,728 11,163 Total share-based compensation expense (2) $ 43,458 $ 39,223 $ 49,070 (1) Share-based compensation expense relating to the Manager Equity Plan is reflected within the 2017 Manager Equity Plan. Share-based compensation expense relating to the Non-Executive Director Stock Plan and the Equity Plan are reflected within the 2017 Equity Plan. (2) The income tax benefit associated with the share-based compensation expense for the year ended December 31, 2018 was $1.3 million. |
Schedule of Non-Vested Shares and Share Equivalents | 2017 Weighted Average 2017 Manager Grant Date Fair Equity Plan Equity Plan Total Value (per share) Balance as of January 1, 2018 885,138 806,251 1,691,389 $ 21.95 Granted 851,170 775,000 1,626,170 21.20 Vested (287,341) (583,331) (870,672) 21.77 Forfeited (12,522) — (12,522) 21.44 Balance as of December 31, 2018 1,436,445 997,920 2,434,365 21.52 (1) Equity-based award activity for awards granted under the Equity Plan and Non-Executive Director Stock Plan is reflected within the 2017 Equity Plan column, and for awards granted under the Manager Equity Plan, within the 2017 Manager Equity Plan column. |
Vesting Schedule | 2017 Manager 2017 Equity Plan Equity Plan Total 2019 501,944 591,667 1,093,611 2020 626,159 341,669 967,828 2021 293,133 64,584 357,717 2022 15,209 — 15,209 Total 1,436,445 997,920 2,434,365 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per Share | |
Reconciliation of net income from continuing operations and the number of shares of common stock used in the computation of basic EPS and diluted EPS | The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Year Ended December 31, 2018 2017 2016 Basic Earnings Income attributable to STWD common stockholders $ 385,830 $ $ 365,186 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,592) (3,183) (2,053) Basic earnings $ 382,238 $ $ 363,133 Diluted Earnings Income attributable to STWD common stockholders $ 385,830 $ $ 365,186 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,592) (3,183) (2,053) Add: Interest expense on Convertible Notes (1) 25,148 — — Add: Loss on extinguishment of Convertible Notes (1) 2,099 — — Diluted earnings $ 409,485 $ $ 363,133 Number of Shares: Basic — Average shares outstanding 238,529 Effect of dilutive securities — Convertible Notes (1) 22,659 1,899 2,697 Effect of dilutive securities — Contingently issuable shares 546 508 473 Effect of dilutive securities — Unvested non-participating shares — 52 95 Diluted — Average shares outstanding 241,794 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.44 $ 1.53 $ 1.52 Diluted $ 1.42 $ 1.52 $ 1.50 (1) Prior to June 30, 2018, the Company had asserted its intent and ability to settle the principal amount of the Convertible Notes in cash. Accordingly, under GAAP, the dilutive effect to EPS for the prior years was determined using the treasury stock method by dividing only the “conversion spread value” of the “in-the-money” Convertible Notes by the Company’s average share price and including the resulting share amount in the diluted EPS denominator. The conversion value of the principal amount of the Convertible Notes was not included. Effective June 30, 2018, the Company no longer asserts its intent to fully settle the principal amount of the Convertible Notes in cash upon conversion. Accordingly, under GAAP, the dilutive effect to EPS for the current year is determined using the “if-converted” method whereby interest expense or any loss on extinguishment of our Convertible Notes is added back to the diluted EPS numerator and the full number of potential shares contingently issuable upon their conversion is included in the diluted EPS denominator, if dilutive. Refer to Note 11 for further discussion. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |
Schedule of changes in AOCI by component | The changes in AOCI by component are as follows (amounts in thousands): Cumulative Unrealized Gain Effective Portion of (Loss) on Foreign Cumulative Loss on Available-for- Currency Cash Flow Hedges Sale Securities Translation Total Balance at January 1, 2016 $ (65) $ 37,307 $ (7,513) $ 29,729 OCI before reclassifications (284) 7,622 (10,040) (2,702) Amounts reclassified from AOCI 323 — 8,788 9,111 Net period OCI 39 7,622 (1,252) 6,409 Balance at December 31, 2016 (26) 44,929 (8,765) 36,138 OCI before reclassifications 54 13,055 20,775 33,884 Amounts reclassified from AOCI (3) (95) — (98) Net period OCI 51 12,960 20,775 33,786 Balance at December 31, 2017 25 57,889 12,010 69,924 OCI before reclassifications 8 (1,390) (6,865) (8,247) Amounts reclassified from AOCI (33) (2,984) — (3,017) Net period OCI (25) (4,374) (6,865) (11,264) Balance at December 31, 2018 $ — $ 53,515 $ 5,145 $ 58,660 |
Schedule of reclassifications out of AOCI that impacted the condensed consolidated statements of operations | The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2018, 2017 and 2016 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Year Affected Line Item Ended December 31, in the Statements Details about AOCI Components 2018 2017 2016 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ 33 $ 3 $ (323) Interest expense Unrealized gains (losses) on available-for-sale securities: Interest realized upon collection 46 95 — Interest income from investment securities Net realized gain on sale of investment 2,938 — — Gain on sale of investments and other assets, net Total 95 Foreign currency translation: Foreign currency loss from European servicing and advisory business divestiture — — (8,788) Gain on sale of investments and other assets, net Total reclassifications for the period $ $ 98 $ |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
Schedule of financial assets and liabilities carried at fair value on a recurring basis | The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of December 31, 2018 and 2017 (amounts in thousands): December 31, 2018 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 671,282 $ — $ — $ 671,282 RMBS 209,079 — — 209,079 CMBS 41,347 — 16,119 25,228 Equity security 11,893 11,893 — — Domestic servicing rights 20,557 — — 20,557 Derivative assets 52,691 — 52,691 — VIE assets 53,446,364 — — 53,446,364 Total $ 54,453,213 $ 11,893 $ 68,810 $ 54,372,510 Financial Liabilities: Derivative liabilities $ 15,415 $ — $ 15,415 $ — VIE liabilities 52,195,042 — 50,753,596 1,441,446 Total $ 52,210,457 $ — $ 50,769,011 $ 1,441,446 December 31, 2017 Total Level I Level II Level III Financial Assets: Loans held-for-sale, fair value option $ 745,743 $ — $ — $ 745,743 RMBS 247,021 — — 247,021 CMBS 24,191 — — 24,191 Equity security 13,523 13,523 — — Domestic servicing rights 30,759 — — 30,759 Derivative assets 33,898 — 33,898 — VIE assets 51,045,874 — — 51,045,874 Total $ 52,141,009 $ 13,523 $ 33,898 $ 52,093,588 Financial Liabilities: Derivative liabilities $ 36,200 $ — $ 36,200 $ — VIE liabilities 50,000,010 — 47,811,073 2,188,937 Total $ 50,036,210 $ — $ 47,847,273 $ 2,188,937 |
Schedule of changes in financial assets and liabilities classified as Level III | The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2018 and 2017 (amounts in thousands): Domestic Loans Servicing VIE Held ‑ for ‑ sale RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2017 balance $ 63,279 253,915 31,546 55,082 67,123,261 (2,585,369) $ 64,941,714 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 66,987 — (3,986) (24,323) (17,522,632) 889,008 (16,594,946) OTTI — (109) — — — — (109) Net accretion — 13,457 — — — — 13,457 Included in OCI — 12,960 — — — — 12,960 Purchases / Originations 2,265,552 7,433 11,798 — — — 2,284,783 Sales (1,582,050) — (11,579) — — — (1,593,629) Issuances — — — — — (25,605) (25,605) Cash repayments / receipts (68,025) (40,635) (9,239) — — (40,544) (158,443) Transfers into Level III — — — — — (629,293) (629,293) Transfers out of Level III — — — — — 303,295 303,295 Consolidation of VIEs — — — — 3,925,370 (195,913) 3,729,457 Deconsolidation of VIEs — — 5,651 — (2,480,125) 95,484 (2,378,990) December 31, 2017 balance 745,743 247,021 24,191 30,759 51,045,874 (2,188,937) 49,904,651 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 40,217 3,527 2,568 (10,202) (5,835,225) 1,022,887 (4,776,228) Net accretion — 10,932 — — — — 10,932 Included in OCI — (4,374) — — — — (4,374) Purchases / Originations 2,276,788 — 3,621 — — — 2,280,409 Sales (2,051,634) (13,264) (3,163) — — — (2,068,061) Issuances — — — — — (102,474) (102,474) Cash repayments / receipts (144,322) (34,763) (23,520) — — (89,747) (292,352) Transfers into Level III — — 16,845 — — (1,043,920) (1,027,075) Transfers out of Level III (195,510) — — — — 922,985 727,475 Consolidation of VIEs — — — — 9,885,200 (212,257) 9,672,943 Deconsolidation of VIEs — — 4,686 — (1,649,485) 250,017 (1,394,782) December 31, 2018 balance $ 671,282 $ 209,079 $ 25,228 $ 20,557 $ 53,446,364 $ (1,441,446) $ 52,931,064 Amount of total gains (losses) included in earnings attributable to assets still held at: December 31, 2017 $ 3,506 13,241 1,711 (24,323) (17,522,632) 889,008 $ (16,639,489) December 31, 2018 (3,753) 10,398 (352) (10,202) (5,835,225) 1,022,887 (4,816,247) |
Schedule of fair value of financial instruments not carried at fair value | The following table presents the fair values, all of which are classified in Level III of the fair value hierarchy, of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands): December 31, 2018 December 31, 2017 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings $ 9,122,972 $ 9,178,709 $ 6,636,898 $ 6,729,302 HTM debt securities 644,149 643,948 433,468 428,338 Financial liabilities not carried at fair value: Secured financing agreements and secured borrowings on transferred loans $ 8,757,804 $ 8,662,548 $ 5,847,241 $ 5,810,998 Unsecured senior notes 1,998,831 1,945,160 2,125,235 2,191,285 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Schedule of income tax provision | Our income tax provision consisted of the following for the years ended December 31, 2018, 2017 and 2016 (in thousands): For the year ended December 31, 2018 2017 2016 Current Federal $ 10,508 $ 17,495 $ 8,878 State 3,010 3,115 2,192 Foreign 293 8 938 Total current 13,811 20,618 12,008 Deferred Federal 1,189 10,815 (2,655) State 330 89 (562) Foreign — — (447) Total deferred 1,519 10,904 (3,664) Total income tax provision $ 15,330 $ 31,522 $ 8,344 |
Schedule of tax effects of temporary differences on net deferred tax assets | The following table presents the tax effects of temporary differences on net deferred tax assets which are classified in other assets in our consolidated balance sheets (in thousands): December 31, 2018 2017 Deferred tax asset, net Reserves and accruals $ 5,161 $ 3,845 Domestic intangible assets 14,022 17,196 Investment securities and loans — (161) Investment in unconsolidated entities (1,842) (2,005) Deferred income 134 294 Other U.S. temporary differences 702 526 Net deferred tax assets $ 18,177 $ 19,695 |
Schedule of reconciliation of federal income tax determined using statutory federal tax rate to reported income tax provision | The following table is a reconciliation of our U.S. federal income tax determined using our statutory federal tax rate to our reported income tax provision for the years ended December 31, 2018, 2017 and 2016 (dollars in thousands): For the Year Ended December 31, 2018 2017 2016 Federal statutory tax rate $ 89,571 21.0 % $ 155,501 35.0 % $ 131,598 35.0 % REIT and other non-taxable income (77,972) (18.3) % (135,830) (30.6) % (123,209) (32.7) % State income taxes 3,038 0.7 % 3,091 0.7 % 1,634 0.4 % Federal benefit of state tax deduction (638) (0.1) % (1,082) (0.2) % (572) (0.2) % Valuation allowance — — % — — % (2,966) (0.8) % Changes in tax law — — % 10,365 2.3 % — — % Other 1,331 0.3 % (523) (0.1) % 1,859 0.5 % Effective tax rate $ 15,330 3.6 % $ 31,522 7.1 % $ 8,344 2.2 % |
Schedule of Valuation Allowance | There were no changes in valuation allowance during the year ended December 31, 2018. The changes in the valuation allowance associated with our deferred tax assets are as follows for the years ended December 31, 2017, and 2016 (amounts in thousands): 2017 2016 January 1 balance $ 5,533 $ 10,573 Releases to income tax provision (5,533) (2,966) Provision to return adjustments to deferred tax amounts — — Foreign currency adjustments reflected in OCI — (417) Release due to European servicing and advisory business divestiture — (1,585) Other — (72) December 31 balance $ — $ 5,533 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies. | |
Schedule of future minimum rental payments and sublease income related to existing corporate leases and subleases | Future minimum rental payments for our corporate offices, sublease income from space subleased to other parties within our corporate offices and future minimum rental payments for ground leases of investment properties for each of the next five years and thereafter are as follows (in thousands): Corporate Sublease Ground Rents Income Leases 2019 $ 6,385 $ 1,819 $ 318 2020 5,678 1,660 319 2021 2,819 834 323 2022 39 — 324 2023 — — 326 Thereafter — — 11,576 Total $ 14,921 $ 4,313 $ 13,186 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment and Geographic Data | |
Schedule of results of operations by business segment | The table below presents our results of operations for the year ended December 31, 2018 by business segment (amounts in thousands): Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 576,564 $ 28,995 $ — $ 14,984 $ — $ 620,543 $ — $ 620,543 Interest income from investment securities 50,063 1,095 — 127,100 — 178,258 (121,419) 56,839 Servicing fees 421 — — 103,866 — 104,287 (25,521) 78,766 Rental income — — 292,453 57,231 — 349,684 — 349,684 Other revenues 902 619 444 1,299 360 3,624 (176) 3,448 Total revenues 627,950 30,709 292,897 304,480 360 (147,116) Costs and expenses: Management fees 1,838 — — 72 127,133 129,043 412 129,455 Interest expense 160,769 20,949 75,192 27,459 124,805 409,174 (986) 408,188 General and administrative 26,324 5,631 7,113 84,978 11,747 135,793 339 136,132 Acquisition and investment pursuit costs 2,490 6,806 (46) (663) — 8,587 — 8,587 Costs of rental operations — — 99,632 27,436 — 127,068 — 127,068 Depreciation and amortization 76 — 110,684 21,889 — 132,649 — 132,649 Loan loss allowance, net 34,821 — — — — 34,821 — 34,821 Other expense 307 — (27) 452 — 732 — 732 Total costs and expenses 226,625 33,386 292,548 161,623 263,685 977,867 (235) 977,632 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 165,892 165,892 Change in fair value of servicing rights — — — (14,373) — (14,373) 4,171 (10,202) Change in fair value of investment securities, net (2,765) — — 33,229 — 30,464 (20,119) 10,345 Change in fair value of mortgage loans held-for-sale, net (6,851) — — 47,373 — 40,522 — 40,522 Earnings from unconsolidated entities 5,063 — 3,658 3,809 — 12,530 (1,990) 10,540 Gain on sale of investments and other assets, net 4,019 — 28,468 26,557 — 59,044 — 59,044 Gain (loss) on derivative financial instruments, net 17,654 1,821 22,756 (298) (7,330) 34,603 — 34,603 Foreign currency loss, net (7,816) (1,425) (2) (2) — (9,245) — (9,245) Loss on extinguishment of debt (730) — (2,661) (318) (2,099) (5,808) — (5,808) Other income (loss), net 43 — 508 (1,363) — (812) — (812) Total other income (loss) 8,617 396 52,727 94,614 (9,429) 146,925 147,954 294,879 Income (loss) before income taxes 409,942 (2,281) 53,076 237,471 (272,754) 425,454 1,073 426,527 Income tax provision (2,801) (292) (7,549) (4,688) — (15,330) — (15,330) Net income (loss) 407,141 (2,573) 45,527 232,783 (272,754) 410,124 1,073 411,197 Net income attributable to non-controlling interests (1,451) — (17,623) (5,220) — (24,294) (1,073) (25,367) Net income (loss) attributable to Starwood Property Trust, Inc . $ 405,690 $ (2,573) $ 27,904 $ 227,563 $ (272,754) $ 385,830 $ — $ 385,830 The table below presents our results of operations for the year ended December 31, 2017 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 499,806 $ — $ 14,008 $ — $ 513,814 $ — $ 513,814 Interest income from investment securities 46,710 — 134,743 — 181,453 (128,640) 52,813 Servicing fees 711 — 111,158 — 111,869 (50,423) 61,446 Rental income — 198,466 50,534 — 249,000 — 249,000 Other revenues 686 645 1,794 — 3,125 (310) 2,815 Total revenues 547,913 199,111 312,237 — 1,059,261 (179,373) 879,888 Costs and expenses: Management fees 1,933 — 72 120,387 122,392 307 122,699 Interest expense 107,167 46,552 19,840 123,201 296,760 (1,094) 295,666 General and administrative 19,981 4,734 94,625 9,911 129,251 336 129,587 Acquisition and investment pursuit costs 3,240 375 (143) — 3,472 — 3,472 Costs of rental operations — 72,208 22,050 — 94,258 — 94,258 Depreciation and amortization 66 73,538 19,999 — 93,603 — 93,603 Loan loss allowance, net (5,458) — — — (5,458) — (5,458) Other expense 149 110 1,163 — 1,422 — 1,422 Total costs and expenses 127,078 197,517 157,606 253,499 735,700 (451) 735,249 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 252,434 252,434 Change in fair value of servicing rights — — (30,315) — (30,315) 5,992 (24,323) Change in fair value of investment securities, net 175 — 54,333 — 54,508 (58,319) (3,811) Change in fair value of mortgage loans held-for-sale, net 2,324 — 64,663 — 66,987 — 66,987 Earnings (loss) from unconsolidated entities 3,365 (27,685) 68,192 — 43,872 (13,367) 30,505 (Loss) gain on sale of investments and other assets, net (59) 77 20,481 — 20,499 — 20,499 Loss on derivative financial instruments, net (35,262) (32,333) (2,497) (2,440) (72,532) — (72,532) Foreign currency gain, net 33,651 14 6 — 33,671 — 33,671 OTTI (109) — — — (109) — (109) Loss on extinguishment of debt — — — (5,915) (5,915) — (5,915) Other income, net — 7 1,105 1,745 2,857 (613) 2,244 Total other income (loss) 4,085 (59,920) 175,968 (6,610) 113,523 186,127 299,650 Income (loss) before income taxes 424,920 (58,326) 330,599 (260,109) 437,084 7,205 444,289 Income tax provision (143) (249) (31,130) — (31,522) — (31,522) Net income (loss) 424,777 (58,575) 299,469 (260,109) 405,562 7,205 412,767 Net income attributable to non-controlling interests (1,419) — (3,373) — (4,792) (7,205) (11,997) Net income (loss) attributable to Starwood Property Trust, Inc . $ 423,358 $ (58,575) $ 296,096 $ (260,109) $ 400,770 $ — $ 400,770 The table below presents our results of operations for the year ended December 31, 2016 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 449,470 $ — $ 17,725 $ — $ 467,195 $ — $ 467,195 Interest income from investment securities 47,241 — 146,692 — 193,933 (123,085) 70,848 Servicing fees 782 — 144,941 — 145,723 (56,767) 88,956 Rental income — 114,537 38,223 — 152,760 — 152,760 Other revenues 242 62 5,255 — 5,559 (651) 4,908 Total revenues 497,735 114,599 352,836 — 965,170 (180,503) 784,667 Costs and expenses: Management fees 1,829 — 78 115,348 117,255 196 117,451 Interest expense 88,000 22,009 15,983 105,267 231,259 (460) 230,799 General and administrative 18,517 3,338 121,140 9,243 152,238 703 152,941 Acquisition and investment pursuit costs 1,665 7,886 2,520 1,391 13,462 — 13,462 Costs of rental operations — 47,463 17,638 — 65,101 — 65,101 Depreciation and amortization — 50,669 16,117 — 66,786 — 66,786 Loan loss allowance, net 3,759 — — — 3,759 — 3,759 Other expense — 513 315 — 828 — 828 Total costs and expenses 113,770 131,878 173,791 231,249 650,688 439 651,127 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 151,593 151,593 Change in fair value of servicing rights — — (43,258) — (43,258) (3,891) (47,149) Change in fair value of investment securities, net 20 — (44,094) — (44,074) 42,673 (1,401) Change in fair value of mortgage loans held-for-sale, net — — 74,251 — 74,251 — 74,251 Earnings from unconsolidated entities 3,447 9,736 8,937 — 22,120 (397) 21,723 Gain on sale of investments and other assets, net 1,716 — 226 — 1,942 — 1,942 Gain (loss) on derivative financial instruments, net 41,576 33,476 (4,318) — 70,734 — 70,734 Foreign currency (loss) gain, net (37,595) (38) 3,661 5 (33,967) — (33,967) Loss on extinguishment of debt — — — (8,781) (8,781) — (8,781) Other income, net — 9,102 8,959 4,271 22,332 (8,822) 13,510 Total other income (loss) 9,164 52,276 4,364 (4,505) 61,299 181,156 242,455 Income (loss) before income taxes 393,129 34,997 183,409 (235,754) 375,781 214 375,995 Income tax benefit (provision) 1,610 — (9,954) — (8,344) — (8,344) Net income (loss) 394,739 34,997 173,455 (235,754) 367,437 214 367,651 Net income attributable to non-controlling interests (1,398) — (853) — (2,251) (214) (2,465) Net income (loss) attributable to Starwood Property Trust, Inc . $ 393,341 $ 34,997 $ 172,602 $ (235,754) $ 365,186 $ — $ 365,186 |
Schedule of condensed consolidated balance sheet by business segment | Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Revenues: Interest income from loans $ 449,470 $ — $ 17,725 $ — $ 467,195 $ — $ 467,195 Interest income from investment securities 47,241 — 146,692 — 193,933 (123,085) 70,848 Servicing fees 782 — 144,941 — 145,723 (56,767) 88,956 Rental income — 114,537 38,223 — 152,760 — 152,760 Other revenues 242 62 5,255 — 5,559 (651) 4,908 Total revenues 497,735 114,599 352,836 — 965,170 (180,503) 784,667 Costs and expenses: Management fees 1,829 — 78 115,348 117,255 196 117,451 Interest expense 88,000 22,009 15,983 105,267 231,259 (460) 230,799 General and administrative 18,517 3,338 121,140 9,243 152,238 703 152,941 Acquisition and investment pursuit costs 1,665 7,886 2,520 1,391 13,462 — 13,462 Costs of rental operations — 47,463 17,638 — 65,101 — 65,101 Depreciation and amortization — 50,669 16,117 — 66,786 — 66,786 Loan loss allowance, net 3,759 — — — 3,759 — 3,759 Other expense — 513 315 — 828 — 828 Total costs and expenses 113,770 131,878 173,791 231,249 650,688 439 651,127 Other income (loss): Change in net assets related to consolidated VIEs — — — — — 151,593 151,593 Change in fair value of servicing rights — — (43,258) — (43,258) (3,891) (47,149) Change in fair value of investment securities, net 20 — (44,094) — (44,074) 42,673 (1,401) Change in fair value of mortgage loans held-for-sale, net — — 74,251 — 74,251 — 74,251 Earnings from unconsolidated entities 3,447 9,736 8,937 — 22,120 (397) 21,723 Gain on sale of investments and other assets, net 1,716 — 226 — 1,942 — 1,942 Gain (loss) on derivative financial instruments, net 41,576 33,476 (4,318) — 70,734 — 70,734 Foreign currency (loss) gain, net (37,595) (38) 3,661 5 (33,967) — (33,967) Loss on extinguishment of debt — — — (8,781) (8,781) — (8,781) Other income, net — 9,102 8,959 4,271 22,332 (8,822) 13,510 Total other income (loss) 9,164 52,276 4,364 (4,505) 61,299 181,156 242,455 Income (loss) before income taxes 393,129 34,997 183,409 (235,754) 375,781 214 375,995 Income tax benefit (provision) 1,610 — (9,954) — (8,344) — (8,344) Net income (loss) 394,739 34,997 173,455 (235,754) 367,437 214 367,651 Net income attributable to non-controlling interests (1,398) — (853) — (2,251) (214) (2,465) Net income (loss) attributable to Starwood Property Trust, Inc . $ 393,341 $ 34,997 $ 172,602 $ (235,754) $ 365,186 $ — $ 365,186 The table below presents our consolidated balance sheet as of December 31, 2018 by business segment (amounts in thousands): Commercial and Residential Infrastructure Investing Lending Lending Property and Servicing Securitization Segment Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 14,385 $ 13 $ 27,408 $ 31,449 $ 164,015 $ 237,270 $ 2,554 $ 239,824 Restricted cash 28,324 175,659 25,144 11,679 7,235 248,041 — 248,041 Loans held-for-investment, net 7,072,220 1,456,779 — 3,357 — 8,532,356 — 8,532,356 Loans held-for-sale 670,155 469,775 — 47,622 — 1,187,552 — 1,187,552 Loans transferred as secured borrowings 74,346 — — — — 74,346 — 74,346 Investment securities 1,050,920 60,768 — 998,820 — 2,110,508 (1,204,040) 906,468 Properties, net — — 2,512,847 272,043 — 2,784,890 — 2,784,890 Intangible assets — — 90,889 78,219 — 169,108 (24,075) 145,033 Investment in unconsolidated entities 35,274 — 114,362 44,129 — 193,765 (22,000) 171,765 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 18,174 1,066 32,733 718 — 52,691 — 52,691 Accrued interest receivable 39,862 6,982 359 616 13,177 60,996 (641) 60,355 Other assets 13,958 20,472 67,098 49,363 2,057 152,948 (26) 152,922 VIE assets, at fair value — — — — — — 53,446,364 53,446,364 Total Assets $ 9,017,618 $ 2,310,923 $ 2,870,840 $ 1,678,452 $ 186,484 $ 16,064,317 $ 52,198,136 $ 68,262,453 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 26,508 $ 26,476 $ 67,415 $ 75,655 $ 21,467 $ 217,521 $ 142 $ 217,663 Related-party payable — — — 53 43,990 44,043 — 44,043 Dividends payable — — — — 133,466 133,466 — 133,466 Derivative liabilities 1,290 477 37 1,423 12,188 15,415 — 15,415 Secured financing agreements, net 4,405,599 1,524,551 1,884,187 585,258 297,920 8,697,515 (13,950) 8,683,565 Unsecured senior notes, net — — — — 1,998,831 1,998,831 — 1,998,831 Secured borrowings on transferred loans, net 74,239 — — — — 74,239 — 74,239 VIE liabilities, at fair value — — — — — — 52,195,042 52,195,042 Total Liabilities 4,507,636 1,551,504 1,951,639 662,389 2,507,862 11,181,030 52,181,234 63,362,264 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,808 2,808 — 2,808 Additional paid-in capital 1,430,503 761,992 645,561 87,779 2,069,321 4,995,156 — 4,995,156 Treasury stock — — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 53,516 — 5,208 (64) — 58,660 — 58,660 Retained earnings (accumulated deficit) 3,015,676 (2,573) 13,570 913,642 (4,289,313) (348,998) — (348,998) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,499,695 759,419 664,339 1,001,357 (2,321,378) 4,603,432 — 4,603,432 Non-controlling interests in consolidated subsidiaries 10,287 — 254,862 14,706 — 279,855 16,902 296,757 Total Equity 4,509,982 759,419 919,201 1,016,063 (2,321,378) 4,883,287 16,902 4,900,189 Total Liabilities and Equity $ 9,017,618 $ 2,310,923 $ 2,870,840 $ 1,678,452 $ 186,484 $ 16,064,317 $ 52,198,136 $ 68,262,453 The table below presents our consolidated balance sheet as of December 31, 2017 by business segment (amounts in thousands): Commercial and Residential Investing Lending Property and Servicing Securitization Segment Segment Segment Corporate Subtotal VIEs Total Assets: Cash and cash equivalents $ 14,580 $ 10,388 $ 39,446 $ 299,308 $ 363,722 $ 5,726 $ 369,448 Restricted cash 21,555 12,491 10,289 4,490 48,825 — 48,825 Loans held-for-investment, net 6,558,699 — 3,796 — 6,562,495 — 6,562,495 Loans held-for-sale 613,287 — 132,456 — 745,743 — 745,743 Loans transferred as secured borrowings 74,403 — — — 74,403 — 74,403 Investment securities 694,012 — 1,024,143 — 1,718,155 (999,952) 718,203 Properties, net — 2,364,806 282,675 — 2,647,481 — 2,647,481 Intangible assets — 116,081 95,257 — 211,338 (28,246) 183,092 Investment in unconsolidated entities 45,028 110,704 50,759 — 206,491 (20,988) 185,503 Goodwill — — 140,437 — 140,437 — 140,437 Derivative assets 6,487 26,775 636 — 33,898 — 33,898 Accrued interest receivable 46,650 68 243 786 47,747 — 47,747 Other assets 5,648 71,929 59,676 3,755 141,008 (2,868) 138,140 VIE assets, at fair value — — — — — 51,045,874 51,045,874 Total Assets $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 23,054 $ 62,890 $ 74,426 $ 23,536 $ 183,906 $ 1,211 $ 185,117 Related-party payable 20 — 31 42,318 42,369 — 42,369 Dividends payable — — — 125,916 125,916 — 125,916 Derivative liabilities 20,386 13,063 85 2,666 36,200 — 36,200 Secured financing agreements, net 3,466,487 1,621,885 411,526 296,858 5,796,756 (23,700) 5,773,056 Unsecured senior notes, net — — — 2,125,235 2,125,235 — 2,125,235 Secured borrowings on transferred loans 74,185 — — — 74,185 — 74,185 VIE liabilities, at fair value — — — — — 50,000,010 50,000,010 Total Liabilities 3,584,132 1,697,838 486,068 2,616,529 8,384,567 49,977,521 58,362,088 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — 2,660 2,660 — 2,660 Additional paid-in capital 1,818,559 957,329 659,062 1,280,296 4,715,246 — 4,715,246 Treasury stock — — — (92,104) (92,104) — (92,104) Accumulated other comprehensive income (loss) 57,914 12,076 (66) — 69,924 — 69,924 Retained earnings (accumulated deficit) 2,609,050 (14,335) 687,015 (3,499,042) (217,312) — (217,312) Total Starwood Property Trust, Inc. Stockholders’ Equity 4,485,523 955,070 1,346,011 (2,308,190) 4,478,414 — 4,478,414 Non-controlling interests in consolidated subsidiaries 10,694 60,334 7,734 — 78,762 22,025 100,787 Total Equity 4,496,217 1,015,404 1,353,745 (2,308,190) 4,557,176 22,025 4,579,201 Total Liabilities and Equity $ 8,080,349 $ 2,713,242 $ 1,839,813 $ 308,339 $ 12,941,743 $ 49,999,546 $ 62,941,289 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data (Unaudited) | |
Summary of quarterly financial data | The following table summarizes our quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our results of operations (amounts in thousands, except per share amounts): For the Three-Month Periods Ended March 31 June 30 September 30 December 31 2018: Revenues $ 260,587 $ 269,556 $ 285,719 $ Net income 104,794 117,090 89,381 99,932 Net income attributable to Starwood Property Trust, Inc. 99,932 109,230 84,536 92,132 Earnings per share — Basic 0.38 0.41 0.31 0.33 Earnings per share — Diluted 0.38 0.40 0.31 0.33 2017: Revenues $ 198,720 $ 211,569 $ 226,767 $ Net income 102,854 123,233 92,799 93,881 Net income attributable to Starwood Property Trust, Inc. 102,358 117,380 88,428 92,604 Earnings per share — Basic 0.39 0.45 0.34 0.35 Earnings per share — Diluted 0.39 0.44 0.33 0.35 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Business and Organization | |
Number of reportable business segments | 4 |
Minimum annual REIT taxable income distributable to stockholders (as a percent) | 90.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - VIE & Fair Value (Details) $ in Millions | Dec. 31, 2018USD ($) |
Variable Interest Entities | |
REO assets as a percent of consolidated VIE assets | 2.00% |
Loans as a percent of consolidated VIE assets | 98.00% |
Fair Value Measurements | |
Permitted reinvestment under static investment in VIEs | $ 0 |
Minimum | |
Lease Classification | |
Term of lease as a percent of leased asset’s remaining useful life to determine lease classification | 75.00% |
Minimum lease payments present value percentage in excess of leased asset’s fair value to determine lease classification | 90.00% |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) $ / shares in Units, $ in Thousands | Oct. 15, 2018USD ($)loan | Sep. 19, 2018USD ($) | Nov. 30, 2018shares | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)Dproperty$ / sharesshares | Dec. 31, 2017USD ($)property$ / shares | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2018USD ($)shares |
Acquisitions and Divestitures | ||||||||||
Principal Amount | $ 2,027,969 | $ 2,027,969 | $ 2,161,344 | $ 2,027,969 | $ 2,027,969 | |||||
Interest income from loans | 620,543 | 513,814 | $ 467,195 | |||||||
Interest expense | 408,188 | 295,666 | 230,799 | |||||||
General and administrative expenses | 136,132 | 129,587 | 152,941 | |||||||
Foreign Currency Transaction Gain (Loss), before Tax | (9,245) | 33,671 | (33,967) | |||||||
Gain on sale of property | 55,100 | 19,900 | ||||||||
Liabilities assumed: | ||||||||||
Bargain purchase gains | $ 8,406 | |||||||||
Goodwill | 259,846 | 259,846 | 140,437 | 259,846 | 259,846 | |||||
Pro forma revenue and net income | ||||||||||
Revenues | 1,182,892 | 966,636 | ||||||||
Net income attributable to STWD | $ 392,505 | $ 395,150 | ||||||||
Net income per share - Basic | $ / shares | $ 1.47 | $ 1.51 | ||||||||
Net income per share - Diluted | $ / shares | $ 1.44 | $ 1.50 | ||||||||
Infrastructure Lending Segment | ||||||||||
Acquisitions and Divestitures | ||||||||||
Funded commitments | $ 2,100,000 | |||||||||
Unfunded commitments | $ 466,300 | |||||||||
Number of additional loans acquired | loan | 2 | |||||||||
Principal Amount | $ 1,700,000 | |||||||||
Floating rate | 97 | |||||||||
Revenue | 30,700 | |||||||||
Net loss | 2,600 | |||||||||
Interest income from loans | 30,100 | |||||||||
Interest expense | 20,900 | |||||||||
General and administrative expenses | 5,600 | |||||||||
Bridge facility cancellation fee | 3,000 | |||||||||
Legal and due diligence costs | 3,800 | |||||||||
Assets acquired: | ||||||||||
Loans held-for-investment | 146,275 | 1,649,630 | $ 1,649,630 | 1,649,630 | 1,649,630 | |||||
Loans held-for-sale | 319,710 | 319,710 | 319,710 | 319,710 | ||||||
Investment securities | 65,060 | 65,060 | 65,060 | 65,060 | ||||||
Accrued interest receivable | 850 | 13,843 | 13,843 | 13,843 | 13,843 | |||||
Total assets acquired | 147,125 | 2,048,243 | 2,048,243 | 2,048,243 | 2,048,243 | |||||
Liabilities assumed: | ||||||||||
Accounts payable, accrued expenses and other liabilities | 8,817 | 8,817 | 8,817 | 8,817 | ||||||
Derivative liabilities | 282 | 282 | 282 | 282 | ||||||
Total liabilities assumed | 9,099 | 9,099 | 9,099 | 9,099 | ||||||
Net assets acquired | 147,125 | 2,039,144 | 2,039,144 | 2,039,144 | 2,039,144 | |||||
Purchase price | $ 147,100 | $ 2,000,000 | 2,158,553 | |||||||
Goodwill | 119,400 | 119,409 | 119,409 | 119,409 | 119,409 | |||||
Infrastructure Lending Segment | Amount As Previously Reported | ASU 2015-16 | ||||||||||
Assets acquired: | ||||||||||
Loans held-for-investment | 1,506,544 | |||||||||
Loans held-for-sale | 319,879 | |||||||||
Investment securities | 65,060 | |||||||||
Accrued interest receivable | 12,566 | |||||||||
Total assets acquired | 1,904,049 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable, accrued expenses and other liabilities | 8,327 | |||||||||
Derivative liabilities | 282 | |||||||||
Total liabilities assumed | 8,609 | |||||||||
Net assets acquired | $ 1,895,440 | |||||||||
Infrastructure Lending Segment | Reclassification Adjustment | ASU 2015-16 | ||||||||||
Assets acquired: | ||||||||||
Loans held-for-investment | (3,189) | (3,189) | (3,189) | (3,189) | ||||||
Loans held-for-sale | (169) | (169) | (169) | (169) | ||||||
Accrued interest receivable | 427 | 427 | 427 | 427 | ||||||
Total assets acquired | (2,931) | (2,931) | (2,931) | (2,931) | ||||||
Liabilities assumed: | ||||||||||
Accounts payable, accrued expenses and other liabilities | 490 | 490 | 490 | 490 | ||||||
Total liabilities assumed | 490 | 490 | 490 | 490 | ||||||
Net assets acquired | (3,421) | (3,421) | (3,421) | (3,421) | ||||||
Infrastructure Lending Segment | US | ||||||||||
Acquisitions and Divestitures | ||||||||||
Collateral percentage | 74 | |||||||||
Infrastructure Lending Segment | MEXICO | ||||||||||
Acquisitions and Divestitures | ||||||||||
Collateral percentage | 12 | |||||||||
Infrastructure Lending Segment | UNITED KINGDOM | ||||||||||
Acquisitions and Divestitures | ||||||||||
Collateral percentage | 5 | |||||||||
Woodstar II Portfolio | ||||||||||
Acquisitions and Divestitures | ||||||||||
Principal Amount | 300,900 | $ 300,900 | $ 300,900 | 300,900 | ||||||
Number of properties acquired | property | 19 | |||||||||
Number of properties in portfolio investment | property | 27 | 8 | ||||||||
Number of units acquired | property | 4,369 | 1,740 | 6,109 | |||||||
Percentage of occupied portfolio | 100.00% | |||||||||
Initial aggregate purchase price | 438,100 | $ 438,100 | $ 438,100 | 438,100 | ||||||
Contingent consideration | 29,200 | 29,200 | $ 10,800 | 29,200 | 29,200 | |||||
Capitalized acquisition costs | $ 4,100 | $ 4,100 | $ 4,100 | $ 4,100 | ||||||
Amount issued | $ 116,700 | |||||||||
Interest rate (as a percent) | 3.82% | 3.82% | 3.81% | 3.82% | 3.82% | |||||
Maturity period | 10 years | 10 years | ||||||||
Liabilities assumed: | ||||||||||
Total liabilities assumed | $ 437,400 | $ 437,400 | $ 437,400 | $ 437,400 | ||||||
Purchase price | 408,900 | $ 156,200 | ||||||||
Woodstar II Portfolio | SPT Dolphin | ||||||||||
Acquisitions and Divestitures | ||||||||||
Aggregate gross acquisition price | $ 225,800 | $ 310,700 | ||||||||
Woodstar II Portfolio | SPT Dolphin | Class A Units | ||||||||||
Acquisitions and Divestitures | ||||||||||
Period after issuance date for redemption | 6 months | |||||||||
Number of common stock per unit | 1 | |||||||||
Shares issued | shares | 1,727,314 | 7,403,731 | 10,183,505 | |||||||
Number of business days after the closing of the final property | D | 3 | |||||||||
Redemption of units | shares | 0 | |||||||||
Right to receive additional shares | shares | 1,411,642 | 1,910,563 | ||||||||
Woodstar II Portfolio | Additional Mortgage Facilities Acquired | ||||||||||
Acquisitions and Divestitures | ||||||||||
Amount issued | $ 27,000 | $ 27,000 | $ 27,000 | $ 27,000 | ||||||
Interest rate (as a percent) | 3.06% | 3.06% | 3.06% | 3.06% | ||||||
Woodstar II Portfolio | Additional Mortgage Facilities Acquired | Weighted-average | ||||||||||
Acquisitions and Divestitures | ||||||||||
Maturity period | 27 years 6 months | |||||||||
Investing and Servicing Segment | ||||||||||
Acquisitions and Divestitures | ||||||||||
Payment to acquire investment property | $ 52,700 | |||||||||
Number of real estate business acquired | property | 3 | 16 | 16 | 16 | ||||||
Aggregate gross acquisition price | $ 53,100 | |||||||||
Proceeds from sale of property | 77,900 | $ 52,400 | ||||||||
Gain on sale of property | 26,600 | 19,800 | ||||||||
Amount of non-controlling interest already held by a purchaser of a property | $ 300 | |||||||||
Number of properties in portfolio investment | property | 19 | |||||||||
Liabilities assumed: | ||||||||||
Total liabilities assumed | $ 231,000 | $ 231,000 | $ 231,000 | $ 231,000 | ||||||
Purchase price | 248,900 | $ 248,900 | $ 248,900 | |||||||
Goodwill | $ 140,400 | 140,400 | 140,400 | $ 140,400 | $ 140,400 | |||||
Investing and Servicing Segment | Non-Controlling Interests | ||||||||||
Acquisitions and Divestitures | ||||||||||
Gain on sale of property | $ 5,100 | $ 3,300 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Details) $ / shares in Units, $ in Thousands | Oct. 15, 2018USD ($) | Sep. 19, 2018USD ($) | Sep. 25, 2017USD ($)ft²property | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)ft²propertyitem$ / shares | Dec. 31, 2017USD ($)property$ / shares | Dec. 31, 2016USD ($)ft²propertyitem | Dec. 31, 2015USD ($)ft²propertyitem | Dec. 31, 2016USD ($)ft² |
Acquisitions and Divestitures | ||||||||||||||||
Gain on sale of property | $ 55,100 | $ 19,900 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||
Revenues | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 242,832 | $ 226,767 | $ 211,569 | $ 198,720 | 1,109,280 | 879,888 | $ 784,667 | |||||
Net income (loss) | 99,932 | $ 89,381 | $ 117,090 | $ 104,794 | 93,881 | $ 92,799 | $ 123,233 | $ 102,854 | 411,197 | 412,767 | 367,651 | |||||
Bargain purchase gains | 8,406 | |||||||||||||||
Gain (loss) on derivative financial instruments, net | 34,603 | (72,532) | 70,734 | |||||||||||||
Goodwill | 259,846 | 140,437 | 259,846 | 140,437 | ||||||||||||
Pro forma revenue and net income | ||||||||||||||||
Revenues | 1,182,892 | 966,636 | ||||||||||||||
Net income attributable to STWD | $ 392,505 | $ 395,150 | ||||||||||||||
Net income per share - Basic | $ / shares | $ 1.47 | $ 1.51 | ||||||||||||||
Net income per share - Diluted | $ / shares | $ 1.44 | $ 1.50 | ||||||||||||||
Infrastructure Lending Segment | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Purchase price | $ 147,100 | $ 2,000,000 | $ 2,158,553 | |||||||||||||
Assets acquired: | ||||||||||||||||
Loans held-for-investment | 146,275 | 1,649,630 | 1,649,630 | |||||||||||||
Loans held-for-sale | 319,710 | 319,710 | ||||||||||||||
Investment securities | 65,060 | 65,060 | ||||||||||||||
Accrued interest receivable | 850 | 13,843 | 13,843 | |||||||||||||
Total assets acquired | 147,125 | 2,048,243 | 2,048,243 | |||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 8,817 | 8,817 | ||||||||||||||
Derivative liabilities | 282 | 282 | ||||||||||||||
Total liabilities assumed | 9,099 | 9,099 | ||||||||||||||
Net assets acquired | $ 147,125 | 2,039,144 | 2,039,144 | |||||||||||||
Goodwill | 119,400 | 119,409 | 119,409 | |||||||||||||
Infrastructure Lending Segment | ASU 2015-16 | Amount As Previously Reported | ||||||||||||||||
Assets acquired: | ||||||||||||||||
Loans held-for-investment | 1,506,544 | |||||||||||||||
Loans held-for-sale | 319,879 | |||||||||||||||
Investment securities | 65,060 | |||||||||||||||
Accrued interest receivable | 12,566 | |||||||||||||||
Total assets acquired | 1,904,049 | |||||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 8,327 | |||||||||||||||
Derivative liabilities | 282 | |||||||||||||||
Total liabilities assumed | 8,609 | |||||||||||||||
Net assets acquired | $ 1,895,440 | |||||||||||||||
Infrastructure Lending Segment | ASU 2015-16 | Reclassification Adjustment | ||||||||||||||||
Assets acquired: | ||||||||||||||||
Loans held-for-investment | (3,189) | (3,189) | ||||||||||||||
Loans held-for-sale | (169) | (169) | ||||||||||||||
Accrued interest receivable | 427 | 427 | ||||||||||||||
Total assets acquired | (2,931) | (2,931) | ||||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 490 | 490 | ||||||||||||||
Total liabilities assumed | 490 | 490 | ||||||||||||||
Net assets acquired | $ (3,421) | $ (3,421) | ||||||||||||||
Master Lease Mortgages | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Number of retail properties acquired | property | 20 | 16 | ||||||||||||||
Number of industrial properties acquired | property | 3 | |||||||||||||||
Purchase price | $ 553,300 | |||||||||||||||
Acquisition-related costs | $ 3,700 | |||||||||||||||
Term of master lease agreements | 24 years 7 months 6 days | 24 years 7 months 6 days | 24 years 7 months 6 days | |||||||||||||
Number of square feet of properties | ft² | 5,300,000 | 1,900,000 | ||||||||||||||
Maximum borrowing capacity | $ 265,900 | |||||||||||||||
Liabilities assumed: | ||||||||||||||||
Total liabilities assumed | $ 192,100 | $ 192,100 | ||||||||||||||
Master Lease Mortgages | Utah, Florida, Texas and Minnesota | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Concentration risk (as a percent) | 50.00% | 50.00% | ||||||||||||||
Master Lease Mortgages | Disposed of by sale | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Number of industrial properties acquired | property | 3 | |||||||||||||||
Number of properties sold | property | 4 | |||||||||||||||
Proceeds from sale of property | $ 235,400 | |||||||||||||||
Gain on sale of property | $ 28,500 | |||||||||||||||
Medical Office Portfolio | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Purchase price | $ 758,700 | |||||||||||||||
Area of property | ft² | 1,900,000 | 1,900,000 | ||||||||||||||
Number of acquired properties closed | item | 34 | 34 | ||||||||||||||
Assets acquired: | ||||||||||||||||
Properties | $ 678,727 | $ 678,727 | ||||||||||||||
Intangible assets | 85,508 | 85,508 | ||||||||||||||
Other assets | 5,233 | 5,233 | ||||||||||||||
Total assets acquired | 769,468 | 769,468 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 10,811 | 10,811 | ||||||||||||||
Total liabilities assumed | 486,300 | $ 486,300 | 10,811 | 10,811 | ||||||||||||
Net assets acquired | 758,657 | 758,657 | ||||||||||||||
Goodwill | 0 | 0 | ||||||||||||||
Woodstar Portfolio | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Purchase price | $ 97,400 | 421,500 | ||||||||||||||
Number of properties in portfolio investment | property | 32 | |||||||||||||||
Number of acquired properties closed | item | 14 | 18 | ||||||||||||||
Number of units acquired | item | 8,948 | |||||||||||||||
Assets acquired: | ||||||||||||||||
Cash and cash equivalents | $ 6,254 | 6,254 | ||||||||||||||
Properties | 245,430 | 245,430 | ||||||||||||||
Intangible assets | 8,174 | 8,174 | ||||||||||||||
Other assets | 16,417 | 16,417 | ||||||||||||||
Total assets acquired | 276,275 | 276,275 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 19,666 | 19,666 | ||||||||||||||
Secured financing agreements | 150,763 | 150,763 | ||||||||||||||
Total liabilities assumed | 407,300 | $ 407,300 | 170,429 | 170,429 | ||||||||||||
Net assets acquired | 105,846 | 105,846 | ||||||||||||||
Bargain purchase gains | $ 8,400 | |||||||||||||||
Goodwill | 0 | $ 0 | ||||||||||||||
Ireland Portfolio | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Area of property | ft² | 600,000 | |||||||||||||||
Number of properties sold | property | 0 | 1 | 0 | |||||||||||||
Proceeds from sale of property | $ 3,900 | |||||||||||||||
Liabilities assumed: | ||||||||||||||||
Total liabilities assumed | $ 361,100 | |||||||||||||||
Ireland Portfolio | Net Leased Office Property | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Number of properties in portfolio investment | property | 11 | |||||||||||||||
REIS Equity Portfolio | ||||||||||||||||
Assets acquired: | ||||||||||||||||
Properties | 38,770 | 38,770 | $ 124,479 | 124,479 | ||||||||||||
Intangible assets | 11,955 | 11,955 | 24,836 | 24,836 | ||||||||||||
Other assets | 85 | 85 | 2,978 | 2,978 | ||||||||||||
Total assets acquired | 50,810 | 50,810 | 152,293 | 152,293 | ||||||||||||
Liabilities assumed: | ||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 1,516 | 1,516 | 7,216 | 7,216 | ||||||||||||
Total liabilities assumed | 1,516 | 1,516 | 7,216 | 7,216 | ||||||||||||
Non-controlling interests | 6,462 | 6,462 | ||||||||||||||
Net assets acquired | 49,294 | $ 49,294 | 138,615 | $ 138,615 | ||||||||||||
Master Lease Portfolio, REO Portfolio, Medical Office Portfolio and Woodstar Portfolio | Disposed of by sale | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Number of properties sold | property | 0 | |||||||||||||||
Non-Controlling Interests | ||||||||||||||||
Liabilities assumed: | ||||||||||||||||
Net income (loss) | $ 25,367 | $ 11,997 | 2,465 | |||||||||||||
Investing and Servicing Segment | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Purchase price | $ 248,900 | $ 248,900 | $ 248,900 | |||||||||||||
Number of real estate business acquired | property | 3 | 16 | 16 | 16 | ||||||||||||
Number of properties in portfolio investment | property | 19 | |||||||||||||||
Aggregate gross acquisition price | $ 53,100 | |||||||||||||||
Number of properties sold | property | 9 | 5 | 0 | |||||||||||||
Proceeds from sale of property | $ 77,900 | $ 52,400 | ||||||||||||||
Gain on sale of property | 26,600 | 19,800 | ||||||||||||||
Liabilities assumed: | ||||||||||||||||
Total liabilities assumed | 231,000 | 231,000 | ||||||||||||||
Goodwill | $ 140,400 | $ 140,400 | 140,400 | 140,400 | ||||||||||||
Investing and Servicing Segment | Non-Controlling Interests | ||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||
Gain on sale of property | $ 5,100 | $ 3,300 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Purchase Price Allocations (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Sep. 19, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Acquisitions and Divestitures | |||||
Goodwill | $ 259,846 | $ 140,437 | |||
Repayment of debt of consolidated VIEs | 410,453 | $ 137,208 | $ 283,012 | ||
Infrastructure Lending Segment | |||||
Acquisitions and Divestitures | |||||
Purchase price | $ 147,100 | $ 2,000,000 | 2,158,553 | ||
Fair value of net assets acquired | $ 147,125 | 2,039,144 | |||
Goodwill | $ 119,400 | $ 119,409 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestiture and Spin-off (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Divestiture and Spin-Off | ||||
Gain on sale of investments and other assets | $ 59,044 | $ 20,499 | $ 1,942 | |
Cost method investment | $ 25,671 | $ 31,015 | ||
Situs | ||||
Divestiture and Spin-Off | ||||
Ownership percentage | 6.25% | |||
Cost method investment | $ 12,200 | |||
Equity interest in a servicing and advisory business | ||||
Divestiture and Spin-Off | ||||
Carrying value of net assets contributed in exchange for equity interest | 3,200 | |||
Gain on sale of investments and other assets | 200 | |||
Loss resulting from release of accumulated foreign currency translation adjustment component of equity | $ 8,800 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted cash | ||
Cash [Funds] restricted by lender | $ 175,659 | |
Cash collateral for derivative financial instruments | 37,245 | $ 26,256 |
Funds held on behalf of borrowers and tenants | 12,838 | 10,918 |
Other restricted cash | 22,299 | 11,651 |
Restricted cash | $ 248,041 | $ 48,825 |
Loans - Held for Investment (De
Loans - Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in loans | ||||
Total gross loans | $ 9,833,405 | $ 7,386,971 | ||
Loan loss allowance (loans held-for-investment) | (39,151) | (4,330) | $ (9,788) | $ (6,029) |
Carrying Value | 9,794,254 | 7,382,641 | 5,946,274 | $ 6,263,517 |
Carrying Value | 9,794,254 | 7,382,641 | ||
Proceeds from borrowings | 9,412,715 | 6,273,600 | 6,024,032 | |
Payment of debt | 6,360,610 | 4,586,509 | $ 5,266,115 | |
Face Amount | $ 9,876,545 | 7,397,182 | ||
Loans with variable rates of interest (as a percent) | 94.00% | |||
Weighted average spread of loans (as a percent) | 4.30% | |||
Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 8,571,507 | 6,566,825 | ||
Face Amount | 8,610,457 | 6,595,684 | ||
Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 1,187,552 | 745,743 | ||
Loans held-for-sale, residential | ||||
Investments in loans | ||||
Total gross loans | 623,660 | 613,287 | ||
Face Amount | $ 609,571 | $ 594,105 | ||
Weighted Average Life | 6 years 7 months 6 days | 5 years 4 months 24 days | ||
Loans held-for-sale, residential | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.30% | 6.20% | ||
Loans held-for-sale, commercial | ||||
Investments in loans | ||||
Total gross loans | $ 94,117 | $ 132,456 | ||
Carrying amount of commercial loans | 47,622 | |||
Face Amount | $ 94,916 | $ 132,393 | ||
Weighted Average Life | 6 years 2 months 12 days | 10 years | ||
Loans held-for-sale, commercial | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.40% | 4.60% | ||
Loans Held For Sale Infrastructure | ||||
Investments in loans | ||||
Total gross loans | $ 469,775 | |||
Face Amount | $ 486,909 | |||
Weighted Average Life | 3 months 18 days | |||
Loans Held For Sale Infrastructure | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 3.50% | |||
Loans transferred as secured borrowings | ||||
Investments in loans | ||||
Total gross loans | $ 74,346 | $ 74,403 | ||
Face Amount | $ 74,692 | $ 75,000 | ||
Weighted Average Life | 1 year 3 months 18 days | 2 years 3 months 18 days | ||
Loans transferred as secured borrowings | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 7.10% | 6.20% | ||
First mortgage loan participation | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 6,607,117 | $ 5,818,804 | ||
Face Amount | $ 6,631,236 | $ 5,843,623 | ||
Weighted Average Life | 2 years | 2 years | ||
First mortgage loan participation | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.90% | 6.20% | ||
First priority infrastructure receivables | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 1,456,779 | |||
Face Amount | $ 1,465,828 | |||
Weighted Average Life | 4 years 6 months | |||
First priority infrastructure receivables | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.70% | |||
Mortgage, Residual Profit Participation | Retail and Hospitality Property | ||||
Investments in loans | ||||
Total distributions received from residual profit participation | $ 15,100 | |||
Subordinated mortgages | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 52,778 | $ 177,115 | ||
Face Amount | $ 53,996 | $ 177,386 | ||
Weighted Average Life | 3 years 8 months 12 days | 1 year 10 months 24 days | ||
Subordinated mortgages | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.90% | 10.80% | ||
Mezzanine Loans | ||||
Investments in loans | ||||
Carrying Value | $ 1,000,000 | $ 851,100 | ||
Mezzanine Loans | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 393,832 | 545,299 | ||
Face Amount | $ 394,739 | $ 545,355 | ||
Weighted Average Life | 2 years | 1 year 1 month 6 days | ||
Mezzanine Loans | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 10.60% | 11.00% | ||
Other | ||||
Investments in loans | ||||
Total gross loans | $ 61,001 | $ 25,607 | ||
Face Amount | $ 64,658 | $ 29,320 | ||
Weighted Average Life | 2 years 6 months | 3 years 10 months 24 days | ||
Other | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.20% | 8.50% |
Loans - Ratings (Details)
Loans - Ratings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Investments in loans | ||
Total gross loans | $ 9,833,405 | $ 7,386,971 |
Total gross loans (as a percent) | 100.00% | 100.00% |
Provision for Impaired Losses | $ 38,205 | |
Average recorded investment | 221,600 | |
Carrying amount of loans 90 days or more past due | 3,800 | |
New York City | ||
Investments in loans | ||
Provision for Impaired Losses | 21,600 | |
Rating 1 | ||
Investments in loans | ||
Total gross loans | $ 30,305 | $ 22,270 |
Total gross loans (as a percent) | 0.30% | 0.30% |
Rating 1 | Maximum | ||
Investments in loans | ||
LTV (as a percent) | 65.00% | |
Rating 2 | ||
Investments in loans | ||
Total gross loans | $ 3,549,546 | $ 2,611,998 |
Total gross loans (as a percent) | 36.10% | 35.40% |
Rating 2 | Maximum | ||
Investments in loans | ||
LTV (as a percent) | 70.00% | |
Rating 3 | ||
Investments in loans | ||
Total gross loans | $ 3,334,111 | $ 3,836,019 |
Total gross loans (as a percent) | 33.90% | 51.90% |
Rating 3 | Maximum | ||
Investments in loans | ||
LTV (as a percent) | 80.00% | |
Rating 4 | ||
Investments in loans | ||
Total gross loans | $ 63,094 | $ 120,479 |
Total gross loans (as a percent) | 0.60% | 1.60% |
Allowance for loan losses as a percent of carrying amount | 1.50% | |
Rating 4 | Minimum | ||
Investments in loans | ||
LTV (as a percent) | 80.00% | |
Rating 4 | Maximum | ||
Investments in loans | ||
LTV (as a percent) | 90.00% | |
Rating 5 | ||
Investments in loans | ||
Total gross loans | $ 50,462 | |
Total gross loans (as a percent) | 0.70% | |
Allowance for loan losses as a percent of carrying amount | 5.00% | |
Rating 5 | Minimum | ||
Investments in loans | ||
LTV (as a percent) | 90.00% | |
N/A | ||
Investments in loans | ||
Total gross loans | $ 1,668,797 | |
Total gross loans (as a percent) | 17.00% | |
Total | ||
Investments in loans | ||
Total gross loans | $ 8,645,853 | $ 6,641,228 |
First Mortgages, excluding Cost Recovery Loans | New York City | ||
Investments in loans | ||
Recorded investment | 110,900 | |
Unpaid principal balance | 94,800 | |
Provision for Impaired Losses | 5,500 | |
First Mortgages, excluding Cost Recovery Loans | Montgomery, Alabama | ||
Investments in loans | ||
Recorded investment | 20,700 | |
Unpaid principal balance | 24,300 | |
Unamortized discount | 3,600 | |
Provision for Impaired Losses | 8,300 | |
First Mortgages, excluding Cost Recovery Loans | Orlando, Florida | ||
Investments in loans | ||
Recorded investment | 14,100 | |
Unpaid principal balance | 17,500 | |
Unamortized discount | 3,400 | |
Subordinated mortgages | Greater Chicogo | ||
Investments in loans | ||
Recorded investment | 12,200 | |
Unpaid principal balance | 12,000 | |
Provision for Impaired Losses | $ 8,300 | |
Number of Subordinated Mortgages | item | 2 | |
Mezzanine Loans | New York City | ||
Investments in loans | ||
Recorded investment | $ 48,300 | |
Unpaid principal balance | 31,200 | |
Provision for Impaired Losses | 16,100 | |
Unsecured promissory note | ||
Investments in loans | ||
Unfunded commitment | 5,500 | |
Unsecured promissory note | New York City | ||
Investments in loans | ||
Recorded investment | 6,200 | |
Unpaid principal balance | 6,500 | |
Provision for Impaired Losses | 0 | |
Other | ||
Investments in loans | ||
Total gross loans | 61,001 | 25,607 |
Total loans held-for-investment | ||
Investments in loans | ||
Total gross loans | 8,571,507 | 6,566,825 |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 1 | ||
Investments in loans | ||
Total gross loans | 6,538 | 2,003 |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 2 | ||
Investments in loans | ||
Total gross loans | 3,356,342 | 2,462,268 |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 3 | ||
Investments in loans | ||
Total gross loans | 2,987,296 | 3,183,592 |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 4 | ||
Investments in loans | ||
Total gross loans | 63,094 | 120,479 |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 5 | ||
Investments in loans | ||
Total gross loans | 50,462 | |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | N/A | ||
Investments in loans | ||
Total gross loans | 193,847 | |
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Total | ||
Investments in loans | ||
Total gross loans | 6,607,117 | 5,818,804 |
Total loans held-for-investment | First Priority Infrastructure Loans | N/A | ||
Investments in loans | ||
Total gross loans | 1,456,779 | |
Total loans held-for-investment | First Priority Infrastructure Loans | Total | ||
Investments in loans | ||
Total gross loans | 1,456,779 | |
Total loans held-for-investment | Subordinated mortgages | ||
Investments in loans | ||
Total gross loans | 52,778 | 177,115 |
Total loans held-for-investment | Subordinated mortgages | Rating 2 | ||
Investments in loans | ||
Total gross loans | 7,392 | 11,927 |
Total loans held-for-investment | Subordinated mortgages | Rating 3 | ||
Investments in loans | ||
Total gross loans | 33,410 | 165,188 |
Total loans held-for-investment | Subordinated mortgages | N/A | ||
Investments in loans | ||
Total gross loans | 11,976 | |
Total loans held-for-investment | Subordinated mortgages | Total | ||
Investments in loans | ||
Total gross loans | 52,778 | 177,115 |
Total loans held-for-investment | Mezzanine Loans | ||
Investments in loans | ||
Total gross loans | 393,832 | 545,299 |
Total loans held-for-investment | Mezzanine Loans | Rating 2 | ||
Investments in loans | ||
Total gross loans | 111,466 | 137,803 |
Total loans held-for-investment | Mezzanine Loans | Rating 3 | ||
Investments in loans | ||
Total gross loans | 282,366 | 407,496 |
Total loans held-for-investment | Mezzanine Loans | Total | ||
Investments in loans | ||
Total gross loans | 393,832 | 545,299 |
Total loans held-for-investment | Other | Rating 1 | ||
Investments in loans | ||
Total gross loans | 23,767 | 20,267 |
Total loans held-for-investment | Other | Rating 3 | ||
Investments in loans | ||
Total gross loans | 31,039 | 5,340 |
Total loans held-for-investment | Other | N/A | ||
Investments in loans | ||
Total gross loans | 6,195 | |
Total loans held-for-investment | Other | Total | ||
Investments in loans | ||
Total gross loans | 61,001 | 25,607 |
Loans held-for-sale | ||
Investments in loans | ||
Total gross loans | $ 1,187,552 | $ 745,743 |
Total gross loans (as a percent) | 12.10% | 10.10% |
Loans held-for-sale, residential | ||
Investments in loans | ||
Total gross loans | $ 623,660 | $ 613,287 |
Loans held-for-sale, commercial | ||
Investments in loans | ||
Total gross loans | 94,117 | 132,456 |
Loans transferred as secured borrowings | ||
Investments in loans | ||
Total gross loans | 74,346 | 74,403 |
Loans transferred as secured borrowings | Rating 2 | ||
Investments in loans | ||
Total gross loans | 74,346 | |
Loans transferred as secured borrowings | Rating 3 | ||
Investments in loans | ||
Total gross loans | 74,403 | |
Loans transferred as secured borrowings | Total | ||
Investments in loans | ||
Total gross loans | $ 74,346 | $ 74,403 |
Loans - Activity in Portfolio (
Loans - Activity in Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Activity in allowance for loan losses | |||
Allowance for loan losses at the beginning of the period | $ 4,330 | $ 9,788 | $ 6,029 |
Provision for (reversal of) loan losses | (3,384) | (5,458) | 3,759 |
Provision for impaired loans | 38,205 | ||
Allowance for loan losses at the end of the period | 39,151 | 4,330 | 9,788 |
Recorded investment in loans related to the allowance for loan loss | 275,112 | 170,941 | 516,450 |
Activity in loan portfolio | |||
Balance at the beginning of the period | 7,382,641 | 5,946,274 | 6,263,517 |
Acquisition of Infrastructure Lending Portfolio | 1,969,340 | ||
Acquisitions/origination/additional funding | 6,723,144 | 5,500,539 | 4,502,842 |
Capitalized Interest | 63,047 | 74,339 | 80,992 |
Basis of loans sold | (3,082,347) | (1,634,717) | (2,266,901) |
Loan maturities/principal repayments | (3,272,666) | (2,658,522) | (2,742,462) |
Discount accretion/premium amortization | 38,099 | 39,084 | 48,384 |
Changes in fair value | 40,522 | 66,987 | 74,251 |
Unrealized foreign currency translation (loss) gain | (32,341) | 42,356 | (47,906) |
Change in loan loss allowance, net | (34,821) | 5,458 | (3,759) |
Transfer to/from other asset classifications | (364) | 843 | 37,316 |
Balance at the end of the period | $ 9,794,254 | $ 7,382,641 | $ 5,946,274 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Securities | |||||
Investment securities | $ 906,468 | $ 718,203 | |||
Purchases | $ 492,400 | $ 98,394 | $ 360,341 | ||
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||||
Sales | 16,427 | 11,579 | 18,725 | ||
Principal collections | 382,924 | 232,793 | 108,790 | ||
VIE eliminations | |||||
Investment Securities | |||||
Purchases | (385,463) | (113,978) | (110,400) | ||
Sales | (102,474) | (25,605) | (35,728) | ||
Principal collections | (95,030) | (100,115) | (58,624) | ||
Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 2,110,508 | 1,718,155 | |||
Fair value option | VIE eliminations | |||||
Investment Securities | |||||
Investment securities | (1,204,040) | (999,952) | |||
Held-to-maturity | |||||
Investment Securities | |||||
Purchases | 463,810 | 79,163 | 204,730 | ||
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||||
Principal collections | 327,207 | 182,919 | 6,910 | ||
Held-to-maturity | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 644,149 | 433,468 | |||
RMBS | Available-for-sale | |||||
Investment Securities | |||||
Purchases | 7,433 | 98,035 | |||
Sales | 13,264 | ||||
Principal collections | 34,763 | 40,635 | 43,445 | ||
Purchase Amortized Cost | 165,461 | 199,029 | |||
Credit OTTI | (9,897) | (9,897) | |||
Recorded Amortized Cost | 155,564 | 189,132 | |||
Non-Credit OTTI | (31) | (94) | |||
Gross Unrealized Gains | 53,546 | 58,011 | |||
Gross Unrealized Losses | (28) | ||||
Net Fair Value Adjustment | 53,515 | 57,889 | |||
Fair Value | 209,079 | 247,021 | |||
Portion of securities with variable rate | $ 177,400 | $ 207,000 | |||
Portion of securities with variable rate (as a percent) | 84.90% | 83.80% | |||
Principal balance | $ 309,497 | $ 366,711 | |||
Accretable yield | (55,712) | (64,290) | (64,290) | (54,779) | (55,712) |
Non-accretable difference | (99,154) | (121,867) | |||
Total discount | (153,933) | (177,579) | |||
Amortized cost | 155,564 | 189,132 | |||
Credit deteriorated RMBS | 290,800 | 345,500 | |||
Accretable yield related to credit deteriorated RMBS | $ 49,500 | $ 49,200 | |||
Changes to accretable yield | |||||
Balance at the beginning of the period | 55,712 | 64,290 | |||
Accretion of discount | (10,932) | (13,457) | |||
Purchases | 311 | ||||
Sales | (9,032) | ||||
OTTI | 109 | ||||
Transfer to/from non-accretable difference | 19,031 | 4,459 | |||
Balance at the end of the period | 54,779 | 55,712 | 64,290 | ||
Changes to non accretable difference | |||||
Balance at the beginning of the period | 121,867 | 126,607 | |||
Principal write-downs, net | (3,682) | (5,004) | |||
Purchases | 4,723 | ||||
Transfer to/from non-accretable difference | (19,031) | (4,459) | |||
Balance at the end of the period | 99,154 | 121,867 | 126,607 | ||
Cost of third party management | 1,800 | 1,900 | 1,800 | ||
Proceeds from sale of securities | 13,300 | $ 0 | 0 | ||
Realized gain on sale of securities | $ 3,500 | ||||
RMBS | Available-for-sale | LIBOR | |||||
Investment Securities | |||||
Variable rate, weighted average spread (as a percent) | 1.22% | 1.22% | |||
RMBS | Available-for-sale | One-month LIBOR | |||||
Investment Securities | |||||
Effective variable rate basis (as a percent) | 2.503% | 1.564% | |||
RMBS | Available-for-sale | B | |||||
Investment Securities | |||||
Weighted Average Coupon (as a percent) | 2.80% | ||||
WAL (Years) | 6 years 4 months 24 days | ||||
RMBS | Available-for-sale | CCC- | |||||
Investment Securities | |||||
Weighted Average Coupon (as a percent) | 3.70% | ||||
WAL (Years) | 6 years | ||||
RMBS | Available-for-sale | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | $ 209,079 | $ 247,021 | |||
RMBS | Fair value option | |||||
Investment Securities | |||||
Purchases | $ 90,982 | ||||
Principal collections | 1,439 | ||||
RMBS | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 87,879 | ||||
CMBS | Fair value option | |||||
Investment Securities | |||||
Purchases | 323,071 | $ 125,776 | 167,976 | ||
Sales | 105,637 | 37,184 | 54,453 | ||
Principal collections | $ 114,545 | $ 109,354 | $ 117,059 | ||
Portion of securities with variable rate | 158,700 | ||||
CMBS | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 1,157,508 | 1,024,143 | |||
Equity security | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | $ 11,893 | $ 13,523 |
Investment Securities - AFS and
Investment Securities - AFS and Fair Value Option (Details) $ in Thousands | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Mortgage-backed securities | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | $ 1,200,000 | |
RMBS | Available-for-sale | ||
Estimated Fair Value | ||
Securities with a loss less than 12 months | 2,148 | $ 10,321 |
Securities with a loss greater than 12 months | 643 | |
Unrealized Losses | ||
Securities with a loss less than 12 months | $ (31) | (99) |
Securities with a loss greater than 12 months | $ (23) | |
Number of securities with unrealized loss position | security | 1 | 3 |
Portion of securities with variable rate | $ 177,400 | $ 207,000 |
RMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 87,900 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 62,400 | |
CMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 1,200,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 3,000,000 | |
Portion of securities with variable rate | 158,700 | |
VIE eliminations | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs eliminated against VIE liabilities | $ 41,300 |
Investment Securities - HTM (De
Investment Securities - HTM (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | $ 644,149 | $ 433,468 |
Gross Unrealized Holdings Gains | 3,316 | 2,649 |
Gross Unrealized Holdings Losses | (3,517) | (7,779) |
Fair Value | 643,948 | 428,338 |
HTM preferred equity interests | ||
Less than one year | 75,313 | |
One to three years | 318,531 | |
Three to five years | 202,426 | |
Thereafter | 47,879 | |
Total | 644,149 | 433,468 |
CMBS | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 408,556 | 413,110 |
Gross Unrealized Holdings Gains | 2,435 | 2,002 |
Gross Unrealized Holdings Losses | (3,349) | (7,779) |
Fair Value | 407,642 | 407,333 |
HTM preferred equity interests | ||
Less than one year | 75,313 | |
One to three years | 305,642 | |
Three to five years | 27,601 | |
Total | 408,556 | 413,110 |
Infrastructure bonds | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 60,768 | |
Gross Unrealized Holdings Gains | 178 | |
Gross Unrealized Holdings Losses | (168) | |
Fair Value | 60,778 | |
HTM preferred equity interests | ||
One to three years | 12,889 | |
Thereafter | 47,879 | |
Total | 60,768 | |
Preferred Equity Investment | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 174,825 | 20,358 |
Gross Unrealized Holdings Gains | 703 | 647 |
Fair Value | 175,528 | 21,005 |
HTM preferred equity interests | ||
Three to five years | 174,825 | |
Total | $ 174,825 | $ 20,358 |
Investment Securities - SEREF (
Investment Securities - SEREF (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2017 | |
Residential Real Estate | ||||
Fair value of the investment | $ 25,671 | $ 31,015 | ||
Ownership percentage | 2.00% | |||
SEREF | ||||
Residential Real Estate | ||||
Number of shares acquired | 9,140,000 | 9,140,000 | ||
Fair value of the investment | $ 11,900 | $ 13,500 | ||
Ownership percentage | 2.00% |
Properties (Details)
Properties (Details) $ in Thousands | Sep. 25, 2017ft²property | Dec. 31, 2018USD ($)ft²propertyitem | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)ft²propertyitem | Dec. 31, 2015USD ($)ft²propertyitem | Dec. 31, 2018USD ($)property |
Properties | ||||||
Number of properties sold | property | 16 | 6 | 0 | |||
Proceeds from sale of operating properties | $ 313,300 | $ 56,400 | ||||
Gain on sale of property | 55,100 | 19,900 | ||||
Summary of properties | ||||||
Properties, cost | 2,972,803 | 2,755,050 | $ 2,972,803 | |||
Less: accumulated depreciation | (187,913) | (107,569) | (187,913) | |||
Properties, net | 2,784,890 | 2,647,481 | 2,784,890 | |||
Future rental payments due from tenants under existing non-cancellable operating leases | ||||||
2,019 | 211,718 | 211,718 | ||||
2,020 | 129,825 | 129,825 | ||||
2,021 | 123,474 | 123,474 | ||||
2,022 | 113,393 | 113,393 | ||||
2,023 | 94,771 | 94,771 | ||||
Thereafter | 826,278 | 826,278 | ||||
Total | 1,499,459 | 1,499,459 | ||||
Property Segment | ||||||
Summary of properties | ||||||
Land and land improvements | 648,972 | 585,915 | 648,972 | |||
Buildings and building improvements | 1,980,283 | 1,838,266 | 1,980,283 | |||
Furniture & fixtures | $ 46,048 | $ 31,028 | 46,048 | |||
Property Segment | Minimum | ||||||
Summary of properties | ||||||
Land improvements, useful life | 0 years | 0 years | ||||
Building and building improvements, useful life | 5 years | 5 years | ||||
Furniture & fixtures, useful life | 3 years | 3 years | ||||
Property Segment | Maximum | ||||||
Summary of properties | ||||||
Land improvements, useful life | 15 years | 15 years | ||||
Building and building improvements, useful life | 45 years | 45 years | ||||
Furniture & fixtures, useful life | 7 years | 7 years | ||||
Investing and Servicing Segment | ||||||
Properties | ||||||
Number of properties in portfolio investment | property | 19 | |||||
Total gross properties and lease intangibles | $ 350,900 | 350,900 | ||||
Total liabilities assumed | $ 231,000 | 231,000 | ||||
Number of equity interests in unconsolidated commercial real estate properties | property | 1 | |||||
Gain on sale of property | $ 26,600 | $ 19,800 | ||||
Amount of non-controlling interest already held by a purchaser of a property | 300 | |||||
Summary of properties | ||||||
Land and land improvements | 82,332 | 86,711 | 82,332 | |||
Buildings and building improvements | 213,010 | 212,094 | 213,010 | |||
Furniture & fixtures | $ 2,158 | $ 1,036 | 2,158 | |||
Investing and Servicing Segment | Minimum | ||||||
Summary of properties | ||||||
Land improvements, useful life | 0 years | 0 years | ||||
Building and building improvements, useful life | 3 years | 3 years | ||||
Furniture & fixtures, useful life | 2 years | 2 years | ||||
Investing and Servicing Segment | Maximum | ||||||
Summary of properties | ||||||
Land improvements, useful life | 15 years | 15 years | ||||
Building and building improvements, useful life | 40 years | 40 years | ||||
Furniture & fixtures, useful life | 5 years | 5 years | ||||
Investing and Servicing Segment | Non-Controlling Interests | ||||||
Properties | ||||||
Gain on sale of property | $ 5,100 | $ 3,300 | ||||
Ireland Portfolio | ||||||
Properties | ||||||
Area of property | ft² | 600,000 | |||||
Total gross properties and lease intangibles | $ 521,500 | |||||
Total liabilities assumed | $ 361,100 | |||||
Woodstar Portfolio | ||||||
Properties | ||||||
Number of properties in portfolio investment | property | 32 | |||||
Total gross properties and lease intangibles | $ 623,500 | 623,500 | ||||
Total liabilities assumed | $ 407,300 | $ 170,429 | 407,300 | |||
Number of units acquired | item | 8,948 | |||||
Number of acquired properties closed | item | 14 | 18 | ||||
Woodstar II Portfolio | ||||||
Properties | ||||||
Number of properties in portfolio investment | property | 27 | 8 | ||||
Total gross properties and lease intangibles | $ 598,600 | 598,600 | ||||
Total liabilities assumed | $ 437,400 | $ 437,400 | ||||
Number of units acquired | property | 4,369 | 1,740 | 6,109 | |||
Percentage of occupied portfolio | 100.00% | |||||
Medical Office Portfolio | ||||||
Properties | ||||||
Area of property | ft² | 1,900,000 | |||||
Total gross properties and lease intangibles | $ 760,500 | $ 760,500 | ||||
Total liabilities assumed | $ 486,300 | $ 10,811 | 486,300 | |||
Number of acquired properties closed | item | 34 | 34 | ||||
Master Lease Mortgages | ||||||
Properties | ||||||
Total gross properties and lease intangibles | $ 343,800 | 343,800 | ||||
Total liabilities assumed | $ 192,100 | $ 192,100 | ||||
Number of retail properties acquired | property | 20 | 16 | ||||
Number of industrial properties acquired | property | 3 | |||||
Number of square feet of properties | ft² | 5,300,000 | 1,900,000 | ||||
Term of master lease agreements | 24 years 7 months 6 days | 24 years 7 months 6 days | 24 years 7 months 6 days | |||
Master Lease Mortgages | Disposed of by sale | ||||||
Properties | ||||||
Number of industrial properties acquired | property | 3 | |||||
Gain on sale of property | $ 28,500 | |||||
Net Leased Office Property | Ireland Portfolio | ||||||
Properties | ||||||
Number of properties in portfolio investment | property | 11 | |||||
Utah, Florida, Texas and Minnesota | Master Lease Mortgages | ||||||
Properties | ||||||
Concentration risk (as a percent) | 50.00% | 50.00% |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Aug. 31, 2017 | Oct. 31, 2014 | |
Investment in Unconsolidated Entities | |||||||||
Equity method, Carrying value | $ 146,094 | $ 154,488 | |||||||
Cost method, Carrying value | 25,671 | 31,015 | |||||||
Investment in unconsolidated entities | 171,765 | 185,503 | |||||||
Distributions of earnings from unconsolidated entities | 5,917 | 67,542 | $ 19,983 | ||||||
Carrying value over (under) equity in net assets | 0 | ||||||||
Earnings (loss) from unconsolidated entities | $ 10,540 | $ 30,505 | 21,723 | ||||||
Retail Fund | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 33.00% | 33.00% | |||||||
Equity method, Carrying value | $ 114,362 | $ 110,704 | $ 150,000 | ||||||
Investment in unconsolidated entities | $ 15,500 | ||||||||
Unrealized unfavorable changes in fair value | 34,700 | ||||||||
Earnings (loss) from unconsolidated entities | $ 3,700 | $ (27,700) | $ 9,700 | ||||||
Investor entity which owns equity in two real estate services providers | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | |||||||
Equity method, Carrying value | $ 9,372 | $ 9,312 | |||||||
Percentage of equity sold | 88.00% | ||||||||
Distributions of earnings from unconsolidated entities | $ 66,000 | ||||||||
Earnings (loss) from unconsolidated entities | $ 53,900 | ||||||||
Equity interests in commercial real estate | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | |||||||
Equity method, Carrying value | $ 6,294 | $ 23,192 | |||||||
Cash proceeds | $ 16,700 | ||||||||
Equity interest in a residential mortgage originator | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Carrying value | 9,082 | 7,742 | |||||||
Carrying value over (under) equity in net assets | 1,600 | ||||||||
Equity interest in a residential mortgage originator | Subordinated Loans | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Carrying value | $ 2,000 | ||||||||
Various - Equity method | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Carrying value | $ 6,984 | $ 3,538 | |||||||
Various - Equity method | Minimum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 25.00% | 25.00% | |||||||
Various - Equity method | Maximum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | |||||||
Equity interest in a servicing and advisory business | |||||||||
Investment in Unconsolidated Entities | |||||||||
Equity method, Participation / Ownership % | 6.00% | 6.00% | |||||||
Equity method, Carrying value | $ 6,207 | $ 12,234 | |||||||
Investment funds which own equity in a loan servicer and other real estate assets | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Carrying value | $ 9,225 | $ 9,225 | |||||||
Investment funds which own equity in a loan servicer and other real estate assets | Minimum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Ownership % | 4.00% | 4.00% | |||||||
Investment funds which own equity in a loan servicer and other real estate assets | Maximum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Ownership % | 6.00% | 6.00% | |||||||
Various | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Carrying value | $ 10,239 | $ 9,556 | |||||||
Various | Minimum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Ownership % | 0.00% | 0.00% | |||||||
Various | Maximum | |||||||||
Investment in Unconsolidated Entities | |||||||||
Cost method, Ownership % | 3.00% | 3.00% |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Apr. 19, 2013 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible Assets | ||||
Goodwill | $ 259,846 | $ 140,437 | ||
Summary of Intangible Assets | ||||
Gross Carrying Value | 255,672 | 255,806 | ||
Accumulated Amortization | (110,639) | (72,714) | ||
Net Carrying Value | 145,033 | 183,092 | $ 219,248 | |
In-place lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 198,220 | 187,816 | ||
Accumulated Amortization | (100,873) | (65,351) | ||
Net Carrying Value | 97,347 | 122,465 | 136,877 | |
Favorable lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 36,895 | 37,231 | ||
Accumulated Amortization | (9,766) | (7,363) | ||
Net Carrying Value | 27,129 | 29,868 | 27,289 | |
Domestic Servicing Rights | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 20,557 | 30,759 | ||
Net Carrying Value | 20,557 | 30,759 | $ 55,082 | |
Domestic Servicing Rights | Before consolidation of securitization VIEs | ||||
Intangible Assets | ||||
Servicing rights intangibles | 44,600 | 59,000 | ||
Domestic Servicing Rights | VIE eliminations | ||||
Intangible Assets | ||||
Servicing rights intangibles | 24,100 | 28,200 | ||
Woodstar Portfolio | ||||
Intangible Assets | ||||
Goodwill | 0 | |||
Infrastructure Lending Segment | ||||
Intangible Assets | ||||
Goodwill | $ 119,400 | |||
Period over which tax deductible goodwill is deducted | 15 years | |||
Investing and Servicing Segment | ||||
Intangible Assets | ||||
Goodwill | $ 140,400 | $ 140,400 | ||
Expected tax deductible expenses for goodwill | $ 149,900 | |||
Period over which tax deductible goodwill is deducted | 15 years |
Goodwill and Intangibles - Acti
Goodwill and Intangibles - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | |
Summary of activity within intangible assets | ||||
Balance as of beginning of period | $ 183,092 | $ 219,248 | ||
Amortization | (43,876) | (30,780) | ||
Sales | (2,827) | (831) | ||
Foreign exchange gain | (1,614) | 5,581 | ||
Impairment | (361) | (1,023) | ||
Changes in fair value due to changes in inputs and assumptions | (10,202) | (24,323) | ||
Measurement period adjustments | (890) | |||
Balance as of end of period | 145,033 | 183,092 | $ 219,248 | |
Unfavorable lease liability | 2,900 | 3,700 | ||
Future amortization expense for the European servicing rights, in-place lease intangible assets and favorable lease intangible assets | ||||
2,019 | 23,250 | |||
2,020 | 17,491 | |||
2,021 | 15,047 | |||
2,022 | 12,241 | |||
2,023 | 8,996 | |||
Thereafter | 47,451 | |||
Total | 124,476 | |||
Medical Office Portfolio | ||||
Summary of activity within intangible assets | ||||
Unfavorable lease liability | $ 4,800 | |||
Amortization period of unfavorable lease liability | 9 years 8 months 12 days | |||
Woodstar II Portfolio | ||||
Summary of activity within intangible assets | ||||
Acquisition of finite-lived intangibles | 10,792 | 4,155 | ||
REIS Equity Portfolio | ||||
Summary of activity within intangible assets | ||||
Acquisition of finite-lived intangibles | 10,029 | 11,955 | ||
LNR | ||||
Summary of activity within intangible assets | ||||
Unfavorable lease liability | 4,700 | 6,500 | $ 15,300 | |
Amortization period of unfavorable lease liability | 3 years | |||
Amortization of intangible unfavorable lease liability per year | $ 1,900 | |||
In-place lease | ||||
Summary of activity within intangible assets | ||||
Balance as of beginning of period | 122,465 | 136,877 | ||
Amortization | (39,830) | (26,850) | ||
Sales | (1,791) | (722) | ||
Foreign exchange gain | (1,270) | 4,404 | ||
Impairment | (361) | (1,014) | ||
Measurement period adjustments | (909) | |||
Balance as of end of period | 97,347 | 122,465 | $ 136,877 | |
In-place lease | Woodstar II Portfolio | ||||
Summary of activity within intangible assets | ||||
Acquisition of finite-lived intangibles | 10,792 | 4,155 | ||
In-place lease | REIS Equity Portfolio | ||||
Summary of activity within intangible assets | ||||
Acquisition of finite-lived intangibles | 7,342 | 6,524 | ||
Favorable lease | ||||
Summary of activity within intangible assets | ||||
Balance as of beginning of period | 29,868 | 27,289 | ||
Amortization | (4,046) | (3,930) | ||
Sales | (1,036) | (109) | ||
Foreign exchange gain | (344) | 1,177 | ||
Impairment | (9) | |||
Measurement period adjustments | 19 | |||
Balance as of end of period | 27,129 | 29,868 | 27,289 | |
Favorable lease | REIS Equity Portfolio | ||||
Summary of activity within intangible assets | ||||
Acquisition of finite-lived intangibles | 2,687 | 5,431 | ||
Domestic Servicing Rights | ||||
Summary of activity within intangible assets | ||||
Balance as of beginning of period | 30,759 | 55,082 | ||
Changes in fair value due to changes in inputs and assumptions | (10,202) | (24,323) | ||
Balance as of end of period | $ 20,557 | $ 30,759 | $ 55,082 |
Secured Financing Agreements (D
Secured Financing Agreements (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||||||
Oct. 31, 2018 | Sep. 30, 2018USD ($)item | Aug. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($)item | Apr. 30, 2018USD ($)item | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Secured Financing Agreements | ||||||||||
Principal Amount | $ 2,027,969 | $ 2,161,344 | ||||||||
Unamortized deferred financing costs | (8,078) | (8,269) | ||||||||
Carrying Value | 8,683,565 | 5,773,056 | ||||||||
Payment of debt | 6,360,610 | 4,586,509 | $ 5,266,115 | |||||||
Loss on extinguishment of debt | (5,808) | (5,915) | $ (8,781) | |||||||
Lender 2 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | 600,000 | |||||||||
Maximum facility size subject to certain conditions | $ 900,000 | 900,000 | ||||||||
Number of extension options | item | 3 | |||||||||
Extended term / option | 1 year | |||||||||
Lender 4 Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 1,000,000 | $ 600,000 | $ 1,000,000 | |||||||
Lender 7 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 250,000 | 250,000 | ||||||||
Maturity period | 3 years | |||||||||
Number of extension options | item | 2 | |||||||||
Extended term / option | 1 year | |||||||||
Lender 7 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.75% | |||||||||
Lender 7 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Lender 11 Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 500,000 | $ 250,000 | $ 500,000 | |||||||
Number of extension options | item | 4 | |||||||||
Extended term / option | 1 year | |||||||||
Lender 11 Repo 2 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | 2.00% | ||||||||
Lender 11 Repo 2 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.75% | 2.50% | ||||||||
Lender 12 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 250,000 | |||||||||
Maturity period | 3 years | |||||||||
Number of extension options | item | 3 | |||||||||
Extended term / option | 1 year | |||||||||
Floor interest rate (as a percent) | 0.25% | |||||||||
Lender 12 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.10% | |||||||||
Lender 12 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.45% | |||||||||
Lender 13 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 200,000 | |||||||||
Lender 13 Repo 1 Facility | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Lender 7 Secured Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | 300,000 | |||||||||
Maximum facility size subject to certain conditions | $ 650,000 | |||||||||
MBS Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Rolling maturity period | 11 months | |||||||||
MBS Repo 3 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Rolling maturity period | 12 months | |||||||||
MBS Repo 4 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Current maturity period, relative to when the buyer delivers notice to the seller | 270 days | |||||||||
MBS Repo 5 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 150,000 | |||||||||
Maturity period | 10 years | |||||||||
Extended term / option | 6 months | |||||||||
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired | ||||||||||
Secured Financing Agreements | ||||||||||
Number of mortgage facilities executed | item | 3 | |||||||||
Maximum borrowing capacity | $ 55,800 | |||||||||
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired | Weighted-average | ||||||||||
Secured Financing Agreements | ||||||||||
Maturity period | 4 years | |||||||||
Investing and Servicing Segment Property Mortgages | Additional Mortgage Facilities Acquired | LIBOR | Weighted-average | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.58% | |||||||||
Ireland Mortgage | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 1.93% | |||||||||
Maturity period | 7 years | |||||||||
Woodstar II Mortgages | Additional Mortgage Facilities Acquired | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.82% | |||||||||
Principal Amount | $ 300,900 | |||||||||
Maturity period | 10 years | |||||||||
Woodstar II Government Financing | Additional Mortgage Facilities Acquired | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.06% | |||||||||
Principal Amount | $ 27,000 | |||||||||
Maturity period | 27 years 6 months | |||||||||
Infrastructure Lending Term Loan | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Maximum Facility Size | $ 1,500,000 | $ 1,500,000 | ||||||||
Principal Amount | $ 1,500,000 | 1,500,000 | ||||||||
Maturity period | 3 years | |||||||||
Extended term / option | 1 year | |||||||||
Increase in pricing margin every year (as a percent) | 0.25% | |||||||||
Infrastructure Lending Delayed Draw Term Loan | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Maximum Facility Size | $ 334,000 | 334,000 | ||||||||
Maturity period | 3 years | |||||||||
Extended term / option | 1 year | |||||||||
Increase in pricing margin every year (as a percent) | 0.25% | |||||||||
Infrastructure Lending Revolving Secured Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Maximum Facility Size | $ 286,900 | 286,900 | ||||||||
Principal Amount | $ 23,500 | $ 23,500 | ||||||||
Maturity period | 3 years | |||||||||
Extended term / option | 1 year | |||||||||
Increase in pricing margin every year (as a percent) | 0.25% | |||||||||
Secured financing agreements | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 12,684,088 | |||||||||
Maximum Facility Size | 13,430,704 | |||||||||
Principal Amount | 8,761,624 | 5,813,447 | ||||||||
Unamortized premium (discount), net | (963) | 2,559 | ||||||||
Unamortized deferred financing costs | (77,096) | (42,950) | ||||||||
Carrying Value | 8,683,565 | 5,773,056 | ||||||||
Secured financing agreements | Lender 1 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | 1,678,448 | |||||||||
Maximum Facility Size | 2,000,000 | |||||||||
Principal Amount | $ 1,279,979 | 1,137,654 | ||||||||
Secured financing agreements | Lender 1 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.60% | |||||||||
Secured financing agreements | Lender 1 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 5.75% | |||||||||
Secured financing agreements | Lender 2 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 542,255 | |||||||||
Maximum Facility Size | 900,000 | |||||||||
Principal Amount | $ 384,791 | 238,428 | ||||||||
Secured financing agreements | Lender 2 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Secured financing agreements | Lender 2 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.50% | |||||||||
Secured financing agreements | Lender 3 Repo I | ||||||||||
Secured Financing Agreements | ||||||||||
Principal Amount | 75,291 | |||||||||
Secured financing agreements | Lender 4 Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 1,141,153 | |||||||||
Maximum Facility Size | 1,000,000 | |||||||||
Principal Amount | $ 552,345 | 215,372 | ||||||||
Secured financing agreements | Lender 4 Repo 2 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.00% | |||||||||
Secured financing agreements | Lender 4 Repo 2 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 3.25% | |||||||||
Secured financing agreements | Lender 6 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 655,536 | |||||||||
Maximum Facility Size | 600,000 | |||||||||
Principal Amount | $ 507,545 | 494,353 | ||||||||
Secured financing agreements | Lender 6 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.00% | |||||||||
Secured financing agreements | Lender 6 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.75% | |||||||||
Secured financing agreements | Lender 6 Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 386,670 | |||||||||
Maximum Facility Size | 422,090 | |||||||||
Principal Amount | $ 312,437 | 332,815 | ||||||||
Secured financing agreements | Lender 6 Repo 2 Facility | EURIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | Lender 6 Repo 2 Facility | GBP LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.75% | |||||||||
Secured financing agreements | Lender 7 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 89,038 | |||||||||
Maximum Facility Size | 250,000 | |||||||||
Principal Amount | $ 71,720 | |||||||||
Secured financing agreements | Lender 7 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.75% | |||||||||
Secured financing agreements | Lender 7 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | Lender 9 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Principal Amount | 65,762 | |||||||||
Secured financing agreements | Lender 10 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 200,440 | |||||||||
Maximum Facility Size | 164,840 | |||||||||
Principal Amount | $ 160,480 | 77,800 | ||||||||
Secured financing agreements | Lender 10 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Secured financing agreements | Lender 10 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.75% | |||||||||
Secured financing agreements | Lender 11 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 200,000 | |||||||||
Secured financing agreements | Lender 11 Repo 1 Facility | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.10% | |||||||||
Secured financing agreements | Lender 11 Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 355,606 | |||||||||
Maximum Facility Size | 500,000 | |||||||||
Principal Amount | $ 270,690 | |||||||||
Secured financing agreements | Lender 11 Repo 2 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.00% | |||||||||
Secured financing agreements | Lender 11 Repo 2 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.50% | |||||||||
Secured financing agreements | Lender 12 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 57,368 | |||||||||
Maximum Facility Size | 250,000 | |||||||||
Principal Amount | $ 43,500 | |||||||||
Secured financing agreements | Lender 12 Repo 1 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.10% | |||||||||
Secured financing agreements | Lender 12 Repo 1 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.45% | |||||||||
Secured financing agreements | Lender 13 Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 18,425 | |||||||||
Maximum Facility Size | 200,000 | |||||||||
Principal Amount | $ 14,824 | |||||||||
Secured financing agreements | Lender 13 Repo 1 Facility | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.50% | |||||||||
Secured financing agreements | Lender 7 Secured Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 93,085 | |||||||||
Maximum Facility Size | $ 650,000 | |||||||||
Secured financing agreements | Lender 7 Secured Financing | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | Lender 8 Secured Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Principal Amount | 15,617 | |||||||||
Secured financing agreements | Lender 8 Secured Financing | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 4.00% | |||||||||
Secured financing agreements | Conduit Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 47,622 | |||||||||
Maximum Facility Size | 200,000 | |||||||||
Principal Amount | $ 35,034 | 40,075 | ||||||||
Secured financing agreements | Conduit Repo 2 Facility | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | Conduit Repo 3 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 150,000 | |||||||||
Principal Amount | 26,895 | |||||||||
Secured financing agreements | Conduit Repo 3 Facility | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.10% | |||||||||
Secured financing agreements | MBS Repo 1 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Principal Amount | 6,510 | |||||||||
Secured financing agreements | MBS Repo 2 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 222,333 | |||||||||
Maximum Facility Size | 159,202 | |||||||||
Principal Amount | $ 159,202 | 222,672 | ||||||||
Secured financing agreements | MBS Repo 2 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.55% | |||||||||
Secured financing agreements | MBS Repo 2 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.75% | |||||||||
Secured financing agreements | MBS Repo 3 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 691,963 | |||||||||
Maximum Facility Size | 427,942 | |||||||||
Principal Amount | $ 427,942 | 224,150 | ||||||||
Secured financing agreements | MBS Repo 3 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.30% | |||||||||
Secured financing agreements | MBS Repo 3 Facility | LIBOR | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.85% | |||||||||
Secured financing agreements | MBS Repo 4 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 155,063 | |||||||||
Maximum Facility Size | 110,000 | |||||||||
Principal Amount | $ 13,824 | 77,318 | ||||||||
Secured financing agreements | MBS Repo 4 Facility | LIBOR | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 1.70% | |||||||||
Secured financing agreements | MBS Repo 5 Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 4.21% | |||||||||
Pledged Asset Carrying Value | $ 57,619 | |||||||||
Maximum Facility Size | 150,000 | |||||||||
Principal Amount | 55,437 | |||||||||
Secured financing agreements | Investing and Servicing Segment Property Mortgages | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | 263,725 | |||||||||
Maximum Facility Size | 242,499 | |||||||||
Principal Amount | $ 219,237 | 177,411 | ||||||||
Secured financing agreements | Ireland Mortgage | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 1.93% | |||||||||
Pledged Asset Carrying Value | $ 460,581 | |||||||||
Maximum Facility Size | 362,854 | |||||||||
Principal Amount | 362,854 | 349,900 | ||||||||
Secured financing agreements | Woodstar I Mortgages | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | 346,402 | |||||||||
Maximum Facility Size | 276,748 | |||||||||
Principal Amount | $ 276,748 | 276,748 | ||||||||
Secured financing agreements | Woodstar I Mortgages | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.72% | |||||||||
Secured financing agreements | Woodstar I Mortgages | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.97% | |||||||||
Secured financing agreements | Woodstar I Government Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 195,903 | |||||||||
Maximum Facility Size | 131,179 | |||||||||
Principal Amount | $ 131,179 | 133,418 | ||||||||
Secured financing agreements | Woodstar I Government Financing | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 1.00% | |||||||||
Secured financing agreements | Woodstar I Government Financing | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 5.00% | |||||||||
Secured financing agreements | Woodstar II Mortgages | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 530,299 | |||||||||
Maximum Facility Size | 417,669 | |||||||||
Principal Amount | $ 417,669 | 116,745 | ||||||||
Secured financing agreements | Woodstar II Mortgages | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.81% | |||||||||
Secured financing agreements | Woodstar II Mortgages | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.85% | |||||||||
Secured financing agreements | Woodstar II Government Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 39,126 | |||||||||
Maximum Facility Size | 25,311 | |||||||||
Principal Amount | $ 25,311 | |||||||||
Secured financing agreements | Woodstar II Government Financing | Minimum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 1.00% | |||||||||
Secured financing agreements | Woodstar II Government Financing | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 3.19% | |||||||||
Secured financing agreements | Medical Office Mortgages | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 680,335 | |||||||||
Maximum Facility Size | 524,499 | |||||||||
Principal Amount | $ 492,828 | 497,613 | ||||||||
Secured financing agreements | Medical Office Mortgages | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.50% | |||||||||
Secured financing agreements | Master Lease Mortgages | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 333,107 | |||||||||
Maximum Facility Size | 194,900 | |||||||||
Principal Amount | $ 194,900 | 265,900 | ||||||||
Secured financing agreements | Master Lease Mortgages | Maximum | ||||||||||
Secured Financing Agreements | ||||||||||
Interest rate (as a percent) | 4.38% | |||||||||
Secured financing agreements | Infrastructure Lending Facility | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 1,905,469 | |||||||||
Maximum Facility Size | 2,020,971 | |||||||||
Principal Amount | 1,551,148 | |||||||||
Secured financing agreements | Term Loan A | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | 912,857 | |||||||||
Maximum Facility Size | 300,000 | |||||||||
Principal Amount | $ 300,000 | 300,000 | ||||||||
Secured financing agreements | Term Loan A | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | Revolving Secured Financing | ||||||||||
Secured Financing Agreements | ||||||||||
Maximum Facility Size | $ 100,000 | |||||||||
Secured financing agreements | Revolving Secured Financing | LIBOR | ||||||||||
Secured Financing Agreements | ||||||||||
Pricing margin (as a percent) | 2.25% | |||||||||
Secured financing agreements | FHLB | ||||||||||
Secured Financing Agreements | ||||||||||
Pledged Asset Carrying Value | $ 623,660 | |||||||||
Maximum Facility Size | 500,000 | |||||||||
Principal Amount | $ 500,000 | $ 445,000 |
Secured Financing Agreements -
Secured Financing Agreements - Principal Repayments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Repayment of secured financings | |||
Total | $ 2,027,969 | $ 2,161,344 | |
Write-off of deferred financing costs and unamortized discount | $ 8,200 | ||
Secured financing agreements | |||
Repayment of secured financings | |||
2,019 | 834,032 | ||
2,020 | 1,237,672 | ||
2,021 | 1,620,391 | ||
2,022 | 1,725,300 | ||
2,023 | 2,110,844 | ||
Thereafter | 1,233,385 | ||
Total | 8,761,624 | 5,813,447 | |
Amortization of deferred financing costs from secured financing agreements included in interest expense | 27,000 | $ 19,500 | $ 16,200 |
Repurchase Agreements | |||
Repayment of secured financings | |||
2,019 | 565,219 | ||
2,020 | 483,962 | ||
2,021 | 776,519 | ||
2,022 | 784,940 | ||
2,023 | 1,546,055 | ||
Thereafter | 133,055 | ||
Total | 4,289,750 | ||
Other Secured Financing | |||
Repayment of secured financings | |||
2,019 | 268,813 | ||
2,020 | 753,710 | ||
2,021 | 843,872 | ||
2,022 | 940,360 | ||
2,023 | 564,789 | ||
Thereafter | 1,100,330 | ||
Total | $ 4,471,874 |
Secured Financing Agreements _2
Secured Financing Agreements - Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Secured Financing Agreements | ||
Principal Amount | $ 2,027,969 | $ 2,161,344 |
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks | 72.00% | |
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale | 26.00% | |
Secured financing agreements | ||
Secured Financing Agreements | ||
Principal Amount | $ 8,761,624 | 5,813,447 |
Repurchase Agreements | ||
Secured Financing Agreements | ||
Outstanding balance | 4,289,750 | 3,235,095 |
Principal Amount | 4,289,750 | |
Repurchase Agreements | Loans held for investment | ||
Secured Financing Agreements | ||
Outstanding balance | 3,567,786 | 2,637,475 |
Repurchase Agreements | Loans held-for-sale | ||
Secured Financing Agreements | ||
Outstanding balance | 65,559 | 66,970 |
Repurchase Agreements | Investment securities. | ||
Secured Financing Agreements | ||
Outstanding balance | $ 656,405 | $ 530,650 |
Unsecured Secured Notes (Detail
Unsecured Secured Notes (Details) $ / shares in Units, shares in Thousands | Jan. 01, 2019USD ($)shares | Jan. 29, 2018USD ($) | Dec. 04, 2017USD ($) | Dec. 16, 2016USD ($) | Dec. 31, 2018USD ($)item$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Mar. 29, 2017USD ($) | Oct. 08, 2014USD ($) | Jul. 03, 2013USD ($) | Feb. 15, 2013USD ($) |
Unsecured Senior Notes | |||||||||||
Principal Amount | $ 2,027,969,000 | $ 2,161,344,000 | |||||||||
Unamortized deferred financing costs | (8,078,000) | (8,269,000) | |||||||||
Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes | 3,755,000 | 31,638,000 | |||||||||
Carrying amount of debt components | 1,998,831,000 | 2,125,235,000 | |||||||||
Interest expense | 408,188,000 | 295,666,000 | $ 230,799,000 | ||||||||
Loss on extinguishment of debt | $ 5,808,000 | $ 5,915,000 | $ 8,781,000 | ||||||||
Conversion Spread Value - Shares | shares | 91 | 1,899 | 2,697 | ||||||||
Principal amount of notes, basis for conversion | $ 1,000 | ||||||||||
Closing share price (in dollars per share) | $ / shares | $ 19.71 | $ 21.35 | $ 21.95 | ||||||||
Conversion upon satisfaction of closing market price condition | Maximum | |||||||||||
Unsecured Senior Notes | |||||||||||
Period of average closing market price of common stock as a basis for debt conversion | 10 days | ||||||||||
2017 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Loss on extinguishment of debt | $ 600,000 | ||||||||||
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital | 400,000 | ||||||||||
Amount of debt repurchased | 19,400,000 | ||||||||||
Amount paid for debt repurchased | $ 19,900,000 | ||||||||||
2018 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.55% | ||||||||||
Principal Amount | $ 369,981,000 | ||||||||||
Amount issued | $ 600,000,000 | ||||||||||
Conversion Spread Value - Shares | shares | 541 | 1,097 | |||||||||
Amount by which if-converted value of the Notes exceed principal amount | $ 2,000,000 | ||||||||||
2019 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.00% | 4.00% | |||||||||
Effective Rate (as a percent) | 5.04% | ||||||||||
Remaining Period of Amortization | 0 years | ||||||||||
Principal Amount | $ 77,969,000 | $ 341,363,000 | |||||||||
Amount issued | 263,400,000 | $ 460,000,000 | |||||||||
Debt conversion original amount | $ 296,800,000 | ||||||||||
Shares issued to settle redemption | shares | 12,400 | ||||||||||
Cash payments to settle redemptions | $ 25,500,000 | ||||||||||
Settlement consideration attributable to the liability component | 264,400,000 | ||||||||||
Loss on extinguishment of debt | 2,100,000 | ||||||||||
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital | 32,400,000 | ||||||||||
Fair value of shares issued | $ 271,200,000 | ||||||||||
Amount of debt repurchased | $ 19,400,000 | ||||||||||
Conversion Rate | 52.0131 | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 19.23 | ||||||||||
Conversion Spread Value - Shares | shares | 91 | 1,358 | 1,600 | ||||||||
If-converted value | $ 79,900,000 | ||||||||||
2019 Notes | Subsequent event | |||||||||||
Unsecured Senior Notes | |||||||||||
Shares issued to settle redemption | shares | 3,600 | ||||||||||
Cash payments to settle redemptions | $ 12,000,000 | ||||||||||
Value of shares issued to settle redemption | $ 78,000,000 | ||||||||||
2021 Senior Notes 3.625% | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 3.625% | 3.63% | |||||||||
Effective Rate (as a percent) | 3.89% | ||||||||||
Remaining Period of Amortization | 2 years 1 month 6 days | ||||||||||
Principal Amount | $ 500,000,000 | ||||||||||
Amount issued | $ 500,000,000 | ||||||||||
2021 Senior Notes 3.625% | Maximum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 40.00% | ||||||||||
2021 Senior Notes 3.625% | Debt instrument redemption period one | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
2021 Senior Notes 3.625% | Conversion upon satisfaction of trading price condition | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
2021 Senior Notes 5.00% | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 5.00% | 5.00% | |||||||||
Effective Rate (as a percent) | 5.32% | ||||||||||
Remaining Period of Amortization | 3 years | ||||||||||
Principal Amount | $ 700,000,000 | $ 700,000,000 | |||||||||
Amount issued | $ 700,000,000 | ||||||||||
2021 Senior Notes 5.00% | Maximum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 35.00% | ||||||||||
2021 Senior Notes 5.00% | Debt instrument redemption period one | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
2021 Senior Notes 5.00% | Debt instrument redemption period two | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
2023 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.38% | 4.375% | 3.75% | ||||||||
Effective Rate (as a percent) | 4.86% | ||||||||||
Remaining Period of Amortization | 4 years 3 months 18 days | ||||||||||
Principal Amount | $ 250,000,000 | 250,000,000 | |||||||||
Amount issued | $ 250,000,000 | $ 431,300,000 | |||||||||
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital | 3,755,000 | ||||||||||
Conversion Rate | 38.5959 | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 25.91 | ||||||||||
Amount by which if-converted value of the Notes exceed principal amount | $ 59,800,000 | ||||||||||
If-converted value | $ 190,200,000 | ||||||||||
2025 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.75% | 4.75% | |||||||||
Effective Rate (as a percent) | 5.04% | ||||||||||
Remaining Period of Amortization | 6 years 2 months 12 days | ||||||||||
Principal Amount | $ 500,000,000 | 500,000,000 | |||||||||
Amount issued | $ 500,000,000 | ||||||||||
2025 Senior Notes | Maximum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 40.00% | ||||||||||
2025 Senior Notes | Debt instrument redemption period one | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
2025 Senior Notes | Debt instrument redemption period two | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||||
Convertible Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Unamortized discount | (4,644,000) | (11,186,000) | |||||||||
Interest expense | $ 25,148,000 | ||||||||||
Shares issued to settle redemption | shares | 12,400 | ||||||||||
Loss on extinguishment of debt | $ 2,099,000 | ||||||||||
Value of shares issued to settle redemption | $ 263,400,000 | ||||||||||
Amount of debt repurchased | 250,700,000 | ||||||||||
Minimum number of conditions to be satisfied for conversion of debt | item | 1 | ||||||||||
Convertible Senior Notes | Conversion upon satisfaction of closing market price condition | |||||||||||
Unsecured Senior Notes | |||||||||||
Minimum trading period as a basis for debt conversion | 20 days | ||||||||||
Consecutive trading period as a basis for debt conversion | 30 days | ||||||||||
Convertible Senior Notes | Conversion upon satisfaction of closing market price condition | Minimum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of per share value of distributions that exceeds the market price of the entity's common stock as a basis for debt conversion | 10.00% | ||||||||||
Convertible Senior Notes | Conversion upon satisfaction of trading price condition | |||||||||||
Unsecured Senior Notes | |||||||||||
Consecutive trading period as a basis for debt conversion | 5 days | ||||||||||
Convertible Senior Notes | Conversion upon satisfaction of trading price condition | Maximum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of conversion price and last reported sales price as a basis for debt conversion | 98.00% | ||||||||||
Convertible Senior Notes | 2017 Notes | Conversion upon satisfaction of closing market price condition | Minimum | |||||||||||
Unsecured Senior Notes | |||||||||||
Percentage of conversion price as a basis for debt conversion | 110.00% | ||||||||||
Convertible Senior Notes | 2018 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Interest expense | $ 28,900,000 | 72,200,000 | $ 57,100,000 | ||||||||
Loss on extinguishment of debt | 5,900,000 | ||||||||||
Portion of repurchase price attributable to equity component recognized as a reduction of additional paid-in-capital | 18,100,000 | ||||||||||
Amount of debt repurchased | $ 230,000,000 | ||||||||||
Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Unamortized discount | $ (16,416,000) | $ (16,654,000) |
Loan Securitization_Sale Acti_3
Loan Securitization/Sale Activities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loan Transfers Accounted for as Secured Borrowings | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | $ 1,300 | ||
Investing and Servicing Segment | |||
Loan Transfer Activities | |||
Face Amount | 1,517,599 | $ 1,517,368 | $ 1,798,215 |
Proceeds | 1,563,433 | 1,582,050 | 1,884,380 |
Repayment of purchase agreements | $ 1,147,316 | 1,152,938 | 1,170,230 |
Commercial and Residential Lending Segment | |||
Loan Transfers Accounted for as Secured Borrowings | |||
Number of VIEs that were consolidated | item | 2 | ||
Number of VIEs into which the commercial loans were sold | item | 2 | ||
Face Amount | 75,000 | ||
Proceeds | 74,098 | ||
Commercial and Residential Lending Segment | Loans held-for-sale, commercial | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | $ 840,400 | 55,470 | 386,389 |
Proceeds | 835,849 | $ 52,609 | $ 382,881 |
Commercial and Residential Lending Segment | Loans held-for-sale, residential | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 660,865 | ||
Proceeds | $ 683,556 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) $ in Thousands | Dec. 31, 2018USD ($)item | Dec. 31, 2017item |
Derivatives | ||
Number of contracts | 276 | |
Foreign exchange contracts | EUR | Short | ||
Derivatives | ||
Number of contracts | 62 | |
Aggregate notional amount | $ | $ 287,666 | |
Foreign exchange contracts | CAD | Short | ||
Derivatives | ||
Number of contracts | 16 | |
Aggregate notional amount | $ | $ 9,055 | |
Foreign exchange contracts | AUD | Short | ||
Derivatives | ||
Number of contracts | 4 | |
Aggregate notional amount | $ | $ 8,122 | |
Foreign exchange contracts | GBP | Short | ||
Derivatives | ||
Number of contracts | 147 | |
Aggregate notional amount | $ | $ 239,772 | |
Interest rate swaps | Derivatives designated as hedging instruments | ||
Derivatives | ||
Number of contracts | 2 | |
Interest rate swaps - Paying fixed rates | USD | ||
Derivatives | ||
Number of contracts | 17 | |
Aggregate notional amount | $ | $ 1,027,768 | |
Interest rate swaps - Receiving fixed rates | USD | ||
Derivatives | ||
Number of contracts | 2 | |
Aggregate notional amount | $ | $ 970,000 | |
Interest Rate Swap Guarantees | CAD | ||
Derivatives | ||
Number of contracts | 1 | |
Aggregate notional amount | $ | $ 91,374 | |
Interest Rate Swap Guarantees | GBP | ||
Derivatives | ||
Number of contracts | 1 | |
Aggregate notional amount | $ | $ 11,091 | |
Interest Rate Swap Guarantees | USD | ||
Derivatives | ||
Number of contracts | 10 | |
Aggregate notional amount | $ | $ 685,271 | |
Interest rate caps | EUR | ||
Derivatives | ||
Number of contracts | 2 | |
Aggregate notional amount | $ | $ 294,000 | |
Interest rate caps | USD | ||
Derivatives | ||
Number of contracts | 10 | |
Aggregate notional amount | $ | $ 127,536 | |
Credit spread instrument | USD | ||
Derivatives | ||
Number of contracts | 3 | |
Aggregate notional amount | $ | $ 24,000 | |
Forward loan purchase commitments | USD | ||
Derivatives | ||
Number of contracts | 1 | |
Aggregate notional amount | $ | $ 150,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 52,691 | $ 33,898 |
Fair Value of Derivatives in a Liability Position | 15,415 | 36,200 |
Derivatives designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 25 | |
Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 52,691 | 33,873 |
Fair Value of Derivatives in a Liability Position | 15,415 | 36,200 |
Interest rate swaps | Derivatives designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 25 | |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 30,791 | 27,234 |
Fair Value of Derivatives in a Liability Position | 14,457 | 2,781 |
Interest Rate Swap Guarantees | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in a Liability Position | 396 | |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 21,346 | 6,400 |
Fair Value of Derivatives in a Liability Position | 562 | 33,419 |
Credit spread instrument | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 554 | $ 239 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives | |||
Gain (loss) on derivative financial instruments, net | $ 34,603 | $ (72,532) | $ 70,734 |
Derivatives not designated as hedging instruments | |||
Derivatives | |||
Gain (loss) on derivative financial instruments, net | 34,603 | (72,532) | 70,734 |
Interest rate swaps | Derivatives not designated as hedging instruments | |||
Derivatives | |||
Gain (loss) on derivative financial instruments, net | (1,593) | (5,165) | 21,741 |
Interest rate swap guarantees | Derivatives not designated as hedging instruments | |||
Derivatives | |||
Gain (loss) on derivative financial instruments, net | (114) | ||
Foreign exchange contracts | Derivatives not designated as hedging instruments | |||
Derivatives | |||
Gain (loss) on derivative financial instruments, net | 36,040 | (65,645) | 51,818 |
Credit spread instrument | Derivatives not designated as hedging instruments | |||
Derivatives | |||
Gain (loss) on derivative financial instruments, net | 270 | (1,722) | (2,825) |
Cash flow hedges | Interest rate swaps | Derivatives designated as hedging instruments | |||
Derivatives | |||
Gain (Loss) Recognized in OCI (effective portion) | 8 | 54 | (284) |
Gain (Loss) Reclassified from AOCI into Income (effective portion) | $ 33 | $ 3 | $ (323) |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position | $ 52,691 | $ 33,898 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,305,165 | 3,271,295 |
Net Amounts of Liabilities Presented in the Statement of Financial | 4,305,165 | 3,271,295 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 4,291,158 | 3,241,618 |
Cash Collateral Pledged | 8,658 | 15,333 |
Net Amount | 5,349 | 14,344 |
Derivatives | ||
Assets | ||
Gross Amounts of Recognized Assets | 52,691 | 33,898 |
Net Amounts of Assets Presented in the Statement of Financial Position | 52,691 | 33,898 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 1,408 | 6,523 |
Net Amount | 51,283 | 27,375 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 15,415 | 36,200 |
Net Amounts of Liabilities Presented in the Statement of Financial | 15,415 | 36,200 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 1,408 | 6,523 |
Cash Collateral Pledged | 8,658 | 15,333 |
Net Amount | 5,349 | 14,344 |
Repurchase agreements | ||
Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,289,750 | 3,235,095 |
Net Amounts of Liabilities Presented in the Statement of Financial | 4,289,750 | 3,235,095 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | $ 4,289,750 | $ 3,235,095 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Variable interest entities | ||
VIE Assets | $ 53,446,364 | $ 51,045,874 |
VIE Liabilities | 52,195,042 | 50,000,010 |
Debt obligations to beneficial interest holders, unpaid principal balances | 2,027,969 | 2,161,344 |
Interest in VIE | 171,765 | $ 185,503 |
Primary beneficiary | ASU 2015-02 | ||
Variable interest entities | ||
VIE Assets | 798,200 | |
VIE Liabilities | 524,600 | |
Primary beneficiary | SPT Dolphin | ASU 2015-02 | ||
Variable interest entities | ||
VIE Assets | 695,000 | |
VIE Liabilities | $ 443,600 | |
Not primary beneficiary | ||
Variable interest entities | ||
Number of CDO structures currently in default | item | 3 | |
Maximum risk of loss related to VIEs, on fair value basis | $ 41,300 | |
Not primary beneficiary | ASU 2015-02 | ||
Variable interest entities | ||
Interest in VIE | 18,300 | |
Not primary beneficiary | Securitization SPEs | ||
Variable interest entities | ||
Debt obligations to beneficial interest holders, unpaid principal balances | $ 6,900,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Apr. 30, 2018shares | Mar. 31, 2017shares | Jun. 30, 2016GBP (£) | May 31, 2015shares | Dec. 31, 2014GBP (£) | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Termination Fee | |||||||||
Granted (in shares) | shares | 1,626,170 | ||||||||
Total fair value of shares vested | $ 18,300 | $ 18,300 | $ 30,200 | ||||||
Share-based compensation expense, before tax | 43,458 | 39,223 | 49,070 | ||||||
General and administrative: | |||||||||
Termination Fee | |||||||||
Share-based compensation expense, before tax | $ 10,185 | 7,728 | 11,163 | ||||||
Starwood Property Trust, Inc. Manager Equity Plan | |||||||||
Termination Fee | |||||||||
Granted (in shares) | shares | 775,000 | ||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | |||||||||
Termination Fee | |||||||||
Granted (in shares) | shares | 775,000 | 1,000,000 | 675,000 | ||||||
Award vesting period | 3 years | ||||||||
Share-based compensation expense, before tax | $ 12,600 | 10,400 | 21,500 | ||||||
Co-origination of loan with SEREF and private funds, London | |||||||||
Termination Fee | |||||||||
Loans funded by the reporting entity | $ 21,300 | £ 60 | £ 138.3 | ||||||
Manager | |||||||||
Related-Party Transactions | |||||||||
Base management fee as a percentage of stock holders' equity | 1.50% | ||||||||
Base management fee incurred | $ 73,200 | 67,800 | 61,000 | ||||||
Base management fee payable | 19,200 | $ 19,200 | 17,100 | ||||||
Period for calculation of threshold Core Earnings percentage | 12 months | ||||||||
Threshold percentage of Core Earnings for payment of incentive fee | 8.00% | ||||||||
Number of prior calendar quarters for calculation of threshold Core Earnings amount | 3 years | ||||||||
Threshold amount of Core Earnings for payment of incentive fee | $ 0 | ||||||||
Threshold amount of incentive fee to be paid | $ 0 | ||||||||
Incentive fee calculation, multiplication factor (as a percent) | 20.00% | ||||||||
Incentive fee calculation, period | 12 months | ||||||||
Incentive fee calculation, stock value factor (as a percent) | 8.00% | ||||||||
Number of calendar quarters of incentive fee paid subtracted in incentive fee calculation | 9 months | ||||||||
Portion of incentive fee quarterly installment payable in shares (as a percent) | 50.00% | ||||||||
Stock ownership limit (as a percent) | 9.80% | ||||||||
Number of trading days price used to calculate average stock price for payment of incentive fees in shares | item | 5 | ||||||||
Incentive fee incurred | $ 41,400 | 42,100 | 32,800 | ||||||
Incentive fees payable | 21,800 | 21,800 | 22,000 | ||||||
Executive compensation and other reimbursable expenses | 7,700 | 6,400 | $ 5,600 | ||||||
Executive compensation and other reimbursable expense payable | 3,000 | $ 3,000 | $ 3,300 | ||||||
Termination Fee | |||||||||
Affirmative vote required by Company's independent directors for termination of management agreement without cause | two-thirds | ||||||||
Notice period for termination of management agreement without cause | 180 days | ||||||||
Termination fee, factor applied to average base and incentive management fees | item | 3 | ||||||||
Termination period of calculation | 2 years | ||||||||
Termination fee payable upon termination of manager for cause | $ 0 | $ 0 | |||||||
Notice period for termination of management agreement with cause | 30 days | ||||||||
Manager | Restricted stock units | |||||||||
Termination Fee | |||||||||
Granted (in shares) | shares | 252,375 | 138,264 | 169,104 | ||||||
Grant date fair value | $ 5,300 | $ 3,100 | $ 3,300 | ||||||
Share-based compensation expense, before tax | 2,900 | 2,700 | 2,200 | ||||||
Infrastructure Lending Segment | Manager | General and administrative: | |||||||||
Termination Fee | |||||||||
Cash payment | $ 1,300 | $ 0 | $ 0 |
Related-Party Transactions - In
Related-Party Transactions - Investments in Loans and Securities and Other Arrangements (Details) £ in Thousands, $ in Thousands, € in Millions | May 17, 2013USD ($) | Dec. 31, 2018USD ($)item | Oct. 31, 2018GBP (£) | Jun. 30, 2018USD ($)building | Mar. 31, 2018USD ($) | Jan. 31, 2018USD ($)Plant | Aug. 31, 2017USD ($) | Jun. 30, 2017GBP (£) | May 31, 2017USD ($) | Jun. 30, 2016GBP (£)property | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($)loan | Mar. 31, 2015USD ($)property | Dec. 31, 2014GBP (£)item | Oct. 31, 2014USD ($)item | Jul. 31, 2014EUR (€)item | Jul. 31, 2014GBP (£)item | Jan. 31, 2014USD ($) | Oct. 31, 2013USD ($) | Sep. 30, 2013USD ($)item | Aug. 31, 2013USD ($)loanitem | Apr. 30, 2013USD ($)item | Dec. 31, 2012USD ($)shares | Oct. 31, 2012USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($)shares |
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 6,723,144 | $ 5,500,539 | $ 4,502,842 | ||||||||||||||||||||||||||
Spread on interest rate basis (as a percent) | 4.30% | 4.30% | |||||||||||||||||||||||||||
Purchase price of notes | $ 4,428,891 | 3,234,987 | 2,815,333 | ||||||||||||||||||||||||||
Ownership percentage | 2.00% | ||||||||||||||||||||||||||||
Equity method, Carrying value | $ 146,094 | $ 146,094 | 154,488 | ||||||||||||||||||||||||||
Distribution of capital from unconsolidated entities | 21,461 | 14,252 | 15,895 | ||||||||||||||||||||||||||
Earnings (loss) from unconsolidated entities | 10,540 | 30,505 | 21,723 | ||||||||||||||||||||||||||
Interest in VIE | 171,765 | 171,765 | 185,503 | ||||||||||||||||||||||||||
Contribution | $ 13,407 | 106 | 11,387 | ||||||||||||||||||||||||||
CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Payments to acquire security | $ 84,100 | $ 9,700 | |||||||||||||||||||||||||||
Number of regional malls by which investment is secured | building | 5 | ||||||||||||||||||||||||||||
Co-origination of financing through joint venture with Fund IX | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 475,000 | ||||||||||||||||||||||||||||
Number of stories in the building | item | 10 | ||||||||||||||||||||||||||||
Co-origination of financing through joint venture with Fund IX | First mortgage and mezzanine loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 815,000 | ||||||||||||||||||||||||||||
Co-origination of loan with SEREF and private funds, London | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | 62,500 | £ 75,000 | £ 200,000 | ||||||||||||||||||||||||||
Number of properties | property | 3 | ||||||||||||||||||||||||||||
Number of stories in the building | item | 17 | ||||||||||||||||||||||||||||
Loans funded by the reporting entity | 21,300 | £ 60,000 | £ 138,300 | ||||||||||||||||||||||||||
Co-origination of loan with SEREF and private funds | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 99 | ||||||||||||||||||||||||||||
Number of keys in the hotel | item | 239 | 239 | |||||||||||||||||||||||||||
Loans funded by the reporting entity | € | € 58 | ||||||||||||||||||||||||||||
Co-origination of loan with affiliated private funds for London development | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | £ | £ 101,750 | ||||||||||||||||||||||||||||
Number of stories in the building | item | 46 | 46 | |||||||||||||||||||||||||||
Number of stories in the housing development | item | 18 | 18 | |||||||||||||||||||||||||||
Number of private residential and affordable housing units | item | 366 | 366 | |||||||||||||||||||||||||||
Loans funded by the reporting entity | £ | £ 86,750 | ||||||||||||||||||||||||||||
Co-origination of loan with SEREF | GBP-denominated first mortgage loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Total commitments | $ 467,200 | ||||||||||||||||||||||||||||
Purchase of First Mortgage Loan Participation | First mortgage loan participation | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 130,000 | ||||||||||||||||||||||||||||
Number of properties | Plant | 4 | ||||||||||||||||||||||||||||
Purchase of First Mortgage Loan Participation | First mortgage loan participation | LIBOR | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Spread on interest rate basis (as a percent) | 4.00% | ||||||||||||||||||||||||||||
Origination Of Loan For Acquisition Of Office Campus In Irvine, California | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 339,200 | ||||||||||||||||||||||||||||
Purchase of first mortgage loan participation for acquisition of luxury resort, spain from SEREF | First mortgage loan participation | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 55,000 | ||||||||||||||||||||||||||||
Purchase of B-Notes secured by Class-A office buildings | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Aggregate proceeds from sale of interests in notes | $ 95,000 | ||||||||||||||||||||||||||||
Purchase of B-Notes secured by Class-A office buildings | B Notes | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Number of loans | item | 2 | ||||||||||||||||||||||||||||
Purchase price of notes | $ 146,700 | ||||||||||||||||||||||||||||
Number of Class A office buildings with loans | item | 2 | ||||||||||||||||||||||||||||
Number of loans sold | loan | 1 | ||||||||||||||||||||||||||||
Aggregate proceeds from sale of interests in notes | $ 29,200 | ||||||||||||||||||||||||||||
Co-origination of loan with Starfin | First mortgage and mezzanine loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Number of retirement community unit collateralizing loan | item | 109 | ||||||||||||||||||||||||||||
Number of key nursing home collateralizing loan | item | 30 | ||||||||||||||||||||||||||||
Amount committed for loans by the entity | $ 11,300 | ||||||||||||||||||||||||||||
Number of loans | loan | 2 | ||||||||||||||||||||||||||||
Co-origination of loan with Starfin | EUR-denominated first mortgage loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans initially funded | $ 102,300 | ||||||||||||||||||||||||||||
Loans initially funded by the reporting entity | 53,800 | ||||||||||||||||||||||||||||
Future funding | 24,600 | ||||||||||||||||||||||||||||
Future funding commitments by the reporting entity | $ 12,900 | ||||||||||||||||||||||||||||
Number of retail properties | item | 20 | ||||||||||||||||||||||||||||
SEREF | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Number of shares acquired | shares | 9,140,000 | 9,140,000 | |||||||||||||||||||||||||||
Value of shares acquired | $ 14,700 | $ 14,700 | |||||||||||||||||||||||||||
Ownership percentage acquired | 4.00% | ||||||||||||||||||||||||||||
Ownership percentage | 2.00% | ||||||||||||||||||||||||||||
SEREF | Co-origination of loan with SEREF and private funds, London | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | 41,200 | £ 15,000 | |||||||||||||||||||||||||||
Retail Fund | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Equity method, Carrying value | $ 114,362 | $ 150,000 | $ 114,362 | $ 110,704 | |||||||||||||||||||||||||
Equity interest acquired (as a percent) | 33.00% | 33.00% | 33.00% | ||||||||||||||||||||||||||
Distribution of capital from unconsolidated entities | $ 0 | $ 2,100 | 7,200 | ||||||||||||||||||||||||||
Number of regional shopping malls | item | 4 | ||||||||||||||||||||||||||||
Percentage of capital receivable on liquidation before incentive distributions and acquisition fee to GP | 100.00% | 100.00% | |||||||||||||||||||||||||||
Percentage of preferred return receivable on liquidation before incentive distributions and acquisition fee to GP | 8.00% | 8.00% | |||||||||||||||||||||||||||
Earnings (loss) from unconsolidated entities | $ 3,700 | (27,700) | 9,700 | ||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 33.00% | ||||||||||||||||||||||||||||
Interest in VIE | $ 15,500 | ||||||||||||||||||||||||||||
Retail Fund | Properties of unconsolidated entities | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Number of regional shopping malls | item | 4 | 4 | |||||||||||||||||||||||||||
Joint venture | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | ||||||||||||||||||||||||||||
Investing and Servicing Segment | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Purchase price | 248,900 | 248,900 | $ 248,900 | ||||||||||||||||||||||||||
Investing and Servicing Segment | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Purchase price of properties - non-performing loans | $ 0 | 0 | 8,200 | ||||||||||||||||||||||||||
Purchase price of properties - performing loans | 0 | 0 | 36,600 | ||||||||||||||||||||||||||
Investing and Servicing Segment | Co-origination of loan with SEREF and private funds, London | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Total commitments | £ | £ 77,000 | £ 69,300 | |||||||||||||||||||||||||||
Amount committed for loans by the entity | £ | £ 61,600 | £ 55,400 | |||||||||||||||||||||||||||
REO Portfolio | Investing and Servicing Segment | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Net real estate assets | $ 27,700 | 27,700 | 30,900 | 136,900 | |||||||||||||||||||||||||
Non-controlling interest issued | 6,500 | ||||||||||||||||||||||||||||
Purchase price | $ 28,000 | 31,300 | $ 128,100 | ||||||||||||||||||||||||||
REO Portfolio | Investing and Servicing Segment | Joint venture | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Equity interest acquired (as a percent) | 50.00% | ||||||||||||||||||||||||||||
Net real estate assets | $ 28,400 | ||||||||||||||||||||||||||||
Purchase price | 19,000 | ||||||||||||||||||||||||||||
REIS Equity Portfolio | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Net real estate assets | 50,810 | 152,293 | |||||||||||||||||||||||||||
Fund IX | CMBS | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Payments to acquire security | $ 58,600 | ||||||||||||||||||||||||||||
Number of properties | property | 85 | ||||||||||||||||||||||||||||
Fund IX | Co-origination of financing through joint venture with Fund IX | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Distribution for liquidation of interest in joint venture | $ 31,600 | ||||||||||||||||||||||||||||
Fund IX | Joint venture | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | ||||||||||||||||||||||||||||
SEREF | Co-origination of loan with SEREF and private funds, London | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | £ | 45,000 | ||||||||||||||||||||||||||||
SEREF | Co-origination of loan with SEREF and private funds | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | € | € 25 | ||||||||||||||||||||||||||||
SEREF | Co-origination of loan with SEREF | GBP-denominated first mortgage loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | $ 29,200 | ||||||||||||||||||||||||||||
Residential mortgage originator | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 2,000 | ||||||||||||||||||||||||||||
Interest rate (as a percent) | 8.00% | ||||||||||||||||||||||||||||
Payments to loans held-for-sale | $ 135,600 | ||||||||||||||||||||||||||||
Affiliated private funds | Co-origination of loan with SEREF and private funds, London | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | £ | £ 16,700 | ||||||||||||||||||||||||||||
Affiliated private funds | Co-origination of loan with SEREF and private funds | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | € | € 16 | ||||||||||||||||||||||||||||
Affiliated private funds | Co-origination of loan with affiliated private funds for London development | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans funded by the related party | £ | £ 15,000 | ||||||||||||||||||||||||||||
Affiliates of Manager | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Purchase price | $ 50,000 | ||||||||||||||||||||||||||||
Starfin | Co-origination of loan with Starfin | First mortgage and mezzanine loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Amount committed for loans by the third party | $ 22,500 | ||||||||||||||||||||||||||||
Starfin | Co-origination of loan with Starfin | EUR-denominated first mortgage loan | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Loans initially funded by the third party | $ 48,500 | ||||||||||||||||||||||||||||
Future funding commitments by the third party | $ 11,700 | ||||||||||||||||||||||||||||
Fund Participants | REO Portfolio | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Aggregate commitment | 15,000 | ||||||||||||||||||||||||||||
Capital commitments funded | 4,900 | ||||||||||||||||||||||||||||
Amount of additional funding of capital commitments expected | $ 0 | ||||||||||||||||||||||||||||
Incremental percentage to earn on all operating cash flows attributable to capital account, net | 60.00% | ||||||||||||||||||||||||||||
Preferred return to general partner of the fund | 5.00% | ||||||||||||||||||||||||||||
Income recognized by non-controlling interests | $ 2,000 | $ 1,400 | $ 400 | ||||||||||||||||||||||||||
Fund Participants | REO Portfolio | Fund Participants | |||||||||||||||||||||||||||||
Related-Party Transactions | |||||||||||||||||||||||||||||
Equity interest in REO properties acquired after January 1, 2015 (as percent) | 10.00% | 10.00% |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-Controlling Interests (Details) $ / shares in Units, $ in Thousands | Nov. 09, 2018$ / shares | Aug. 08, 2018$ / shares | May 04, 2018$ / shares | Feb. 28, 2018$ / shares | Nov. 08, 2017$ / shares | Aug. 09, 2017$ / shares | May 09, 2017$ / shares | Feb. 23, 2017$ / shares | Dec. 09, 2016USD ($)$ / sharesshares | Nov. 02, 2016$ / shares | Aug. 04, 2016$ / shares | May 09, 2016$ / shares | Feb. 25, 2016$ / shares | Nov. 30, 2018shares | Mar. 31, 2018USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Mar. 29, 2017USD ($) | Jan. 31, 2016USD ($) | Dec. 31, 2014shares | May 31, 2014USD ($) |
Stockholders' Equity | ||||||||||||||||||||||||
Preferred stock, shares authorized | shares | 100,000,000 | 100,000,000 | 100,000,000 | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Common stock, shares authorized | shares | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Shares issued | shares | 20,470,000 | |||||||||||||||||||||||
Price per share | $ / shares | $ 21.93 | |||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ 448,825 | $ 608 | $ 702 | $ 449,230 | ||||||||||||||||||||
Number of shares that may be issued under the DRIP Plan | shares | 11,000,000 | |||||||||||||||||||||||
Value of shares that may be issued under the ATM Agreement | $ 500,000 | |||||||||||||||||||||||
Shares issued under ATM Agreement | shares | 0 | 0 | 0 | |||||||||||||||||||||
Authorized amount of share repurchases | $ 250,000 | $ 500,000 | ||||||||||||||||||||||
Period for repurchase of common stock | 1 year | |||||||||||||||||||||||
Common stock repurchased (in shares) | shares | 573,255 | 1,052,889 | ||||||||||||||||||||||
Repurchase of common stock | $ 12,090 | $ 19,723 | ||||||||||||||||||||||
Dividend declared (in dollars per share) | $ / shares | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | $ 1.92 | $ 1.92 | |||||||||
Net income attributable to non-controlling interests | $ 25,367 | $ 11,997 | $ 2,465 | |||||||||||||||||||||
Payment to acquire non-controlling interest | $ 256,404 | 96,010 | $ 6,934 | |||||||||||||||||||||
Common stock | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Shares issued | shares | 20,470,000 | |||||||||||||||||||||||
2019 Notes | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Face amount of debt repurchased | $ 19,400 | |||||||||||||||||||||||
Debt repurchased amount | $ 19,900 | |||||||||||||||||||||||
Shares issued to settle redemption | shares | 12,400,000 | |||||||||||||||||||||||
Convertible Senior Notes | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Face amount of debt repurchased | $ 250,700 | |||||||||||||||||||||||
Shares issued to settle redemption | shares | 12,400,000 | |||||||||||||||||||||||
Value of shares issued to settle redemption | $ 263,400 | |||||||||||||||||||||||
Convertible Senior Notes | 2019 Notes | Common stock | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Face amount of debt repurchased | $ 0 | |||||||||||||||||||||||
Remaining capacity under repurchase program | 250,100 | $ 250,100 | ||||||||||||||||||||||
Class A Units | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Net income attributable to non-controlling interests | $ 17,600 | |||||||||||||||||||||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Shares issued | shares | 1,727,314 | 7,403,731 | 10,183,505 | |||||||||||||||||||||
Right to receive additional shares | shares | 1,411,642 | 1,910,563 | ||||||||||||||||||||||
Number of common stock per unit | 1 | |||||||||||||||||||||||
Redemption of units | shares | 0 | |||||||||||||||||||||||
REIS Equity Portfolio | ||||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Non-controlling interest | $ 300 | |||||||||||||||||||||||
Payment to acquire non-controlling interest | $ 3,300 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2014 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Mar. 31, 2016 | May 31, 2015 | Jan. 31, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 1,626,170 | |||||||||||||||||||
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Number of shares of authorized for issuance | 11,000,000 | |||||||||||||||||||
Number of shares available for future grants | 9,193,843 | |||||||||||||||||||
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | Restricted stock units | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 2,000,000 | 775,000 | 1,000,000 | 675,000 | 489,281 | |||||||||||||||
Awards granted, fair value | $ 55,420 | $ 16,329 | $ 22,240 | $ 16,511 | $ 14,776 | |||||||||||||||
Award vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | |||||||||||||||
Starwood Property Trust, Inc. Equity Plan | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 851,170 | |||||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||||
Starwood Property Trust, Inc. Equity Plan | Restricted stock | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 851,170 | 742,516 | 389,237 | |||||||||||||||||
Starwood Property Trust, Inc. Equity Plan | Restricted stock units | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 0 | 0 | 47,463 | |||||||||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 775,000 | |||||||||||||||||||
Shares of common stock issued | 98,026 | 131,179 | 224,071 | 545,641 | 239,757 | 98,061 | 123,478 | 418,016 | 144,093 | 65,211 | 117,083 | 606,166 | ||||||||
Price per share | $ 21.94 | $ 21.67 | $ 21.49 | $ 20.13 | $ 21.64 | $ 22.10 | $ 21.83 | $ 22.84 | $ 22.06 | $ 21.99 | $ 19.64 | $ 18.02 | ||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | ||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||
Granted (in shares) | 775,000 | 1,000,000 | 675,000 | |||||||||||||||||
Award vesting period | 3 years |
Stockholders_ Equity and Non-Co
Stockholders’ Equity and Non-Controlling Interests - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based compensation expenses | |||
Total share-based compensation expense | $ 43,458 | $ 39,223 | $ 49,070 |
Income tax effect | 1,300 | ||
Management fees | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 33,273 | 31,495 | 37,907 |
Management fees | Starwood Property Trust, Inc. Manager Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 12,573 | 10,423 | 21,484 |
Management fees | Management agreement | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 20,700 | 21,072 | 16,423 |
General and administrative: | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 10,185 | 7,728 | 11,163 |
General and administrative: | Starwood Property Trust, Inc. Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | $ 10,185 | $ 7,728 | $ 11,163 |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Non-Vested Shares and Share Equivalents activity | ||||
Balance at the beginning of the period (in shares) | 1,691,389 | |||
Granted (in shares) | 1,626,170 | |||
Vested (in shares) | (870,672) | |||
Forfeited (in shares) | (12,522) | |||
Balance at the end of the period (in shares) | 2,434,365 | 1,691,389 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Balance at the beginning of period (in dollars per share) | $ 21.95 | |||
Granted (in dollars per share) | 21.20 | $ 22.20 | $ 19.13 | |
Vested (in dollars per share) | 21.77 | |||
Forfeited (in dollars per share) | 21.44 | |||
Balance at the end of period (in dollars per share) | $ 21.52 | $ 21.95 | ||
Vesting Schedule | ||||
2019 (in shares) | 1,093,611 | |||
2020 (in shares) | 967,828 | |||
2021 (in shares) | 357,717 | |||
2022 (in shares) | 15,209 | |||
Total (in shares) | 1,691,389 | 1,691,389 | 2,434,365 | |
Total unrecognized compensation costs related to unvested share-based compensation | $ 41 | |||
Total fair value of shares vested | $ 18.3 | $ 18.3 | $ 30.2 | |
Period over which unrecognized compensation cost is expected to be recognized | 2 years | |||
Starwood Property Trust, Inc. Equity Plan | ||||
Non-Vested Shares and Share Equivalents activity | ||||
Balance at the beginning of the period (in shares) | 885,138 | |||
Granted (in shares) | 851,170 | |||
Vested (in shares) | (287,341) | |||
Forfeited (in shares) | (12,522) | |||
Balance at the end of the period (in shares) | 1,436,445 | 885,138 | ||
Vesting Schedule | ||||
2019 (in shares) | 501,944 | |||
2020 (in shares) | 626,159 | |||
2021 (in shares) | 293,133 | |||
2022 (in shares) | 15,209 | |||
Total (in shares) | 885,138 | 885,138 | 1,436,445 | |
Starwood Property Trust, Inc. Manager Equity Plan | ||||
Non-Vested Shares and Share Equivalents activity | ||||
Balance at the beginning of the period (in shares) | 806,251 | |||
Granted (in shares) | 775,000 | |||
Vested (in shares) | (583,331) | |||
Balance at the end of the period (in shares) | 997,920 | 806,251 | ||
Vesting Schedule | ||||
2019 (in shares) | 591,667 | |||
2020 (in shares) | 341,669 | |||
2021 (in shares) | 64,584 | |||
Total (in shares) | 806,251 | 806,251 | 997,920 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Continuing Operations: | |||||||||||
Basic - Income attributable to STWD common stockholders | $ 385,830 | $ 400,770 | $ 365,186 | ||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (3,592) | (3,183) | (2,053) | ||||||||
Basic earnings | 382,238 | 397,587 | 363,133 | ||||||||
Continuing Operations: | |||||||||||
Basic - Income attributable to STWD common stockholders | 385,830 | 400,770 | 365,186 | ||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (3,592) | (3,183) | (2,053) | ||||||||
Add: Interest expense on Convertible Notes | 408,188 | 295,666 | 230,799 | ||||||||
Add: Loss on extinguishment of debt | 5,808 | 5,915 | 8,781 | ||||||||
Diluted earnings | $ 409,485 | $ 397,587 | $ 363,133 | ||||||||
Number of Shares: | |||||||||||
Basic - Average shares outstanding | 265,279 | 259,620 | 238,529 | ||||||||
Effect of dilutive securities - Contingently issuable shares (in shares) | 546 | 508 | 473 | ||||||||
Effect of dilutive securities - Unvested non-participating shares | 52 | 95 | |||||||||
Diluted - Average shares outstanding | 288,484 | 262,079 | 241,794 | ||||||||
Basic: | |||||||||||
Basic (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.41 | $ 0.38 | $ 0.35 | $ 0.34 | $ 0.45 | $ 0.39 | $ 1.44 | $ 1.53 | $ 1.52 |
Diluted: | |||||||||||
Diluted (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.40 | $ 0.38 | $ 0.35 | $ 0.33 | $ 0.44 | $ 0.39 | $ 1.42 | $ 1.52 | $ 1.50 |
Convertible Senior Notes | |||||||||||
Continuing Operations: | |||||||||||
Add: Interest expense on Convertible Notes | $ 25,148 | ||||||||||
Add: Loss on extinguishment of debt | $ 2,099 | ||||||||||
Number of Shares: | |||||||||||
Effect of dilutive securities - Convertible Notes (in shares) | 22,659 | 1,899 | 2,697 |
Earnings per Share - Dilutive a
Earnings per Share - Dilutive and Antidilutive securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class A Units | |||
Antidilutive securities and effect of dilutive securities | |||
Number of anti-dilutive common shares excluded from the calculation of diluted income per share | 11.9 | ||
Restricted stock | |||
Antidilutive securities and effect of dilutive securities | |||
Number of anti-dilutive common shares excluded from the calculation of diluted income per share | 13.8 | 4.2 | 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in AOCI by component | |||
Beginning balance | $ 69,924 | $ 36,138 | $ 29,729 |
OCI before reclassifications | (8,247) | 33,884 | (2,702) |
Amounts reclassified from AOCI | (3,017) | (98) | 9,111 |
Net period OCI | (11,264) | 33,786 | 6,409 |
Ending balance | 58,660 | 69,924 | 36,138 |
Effective Portion of Cumulative Loss on Cash Flow Hedges | |||
Changes in AOCI by component | |||
Beginning balance | 25 | (26) | (65) |
OCI before reclassifications | 8 | 54 | (284) |
Amounts reclassified from AOCI | (33) | (3) | 323 |
Net period OCI | (25) | 51 | 39 |
Ending balance | 25 | (26) | |
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Changes in AOCI by component | |||
Beginning balance | 57,889 | 44,929 | 37,307 |
OCI before reclassifications | (1,390) | 13,055 | 7,622 |
Amounts reclassified from AOCI | (2,984) | (95) | |
Net period OCI | (4,374) | 12,960 | 7,622 |
Ending balance | 53,515 | 57,889 | 44,929 |
Foreign Currency Translation | |||
Changes in AOCI by component | |||
Beginning balance | 12,010 | (8,765) | (7,513) |
OCI before reclassifications | (6,865) | 20,775 | (10,040) |
Amounts reclassified from AOCI | 8,788 | ||
Net period OCI | (6,865) | 20,775 | (1,252) |
Ending balance | $ 5,145 | $ 12,010 | $ (8,765) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Impact of Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | $ (408,188) | $ (295,666) | $ (230,799) | ||||||||
Interest income from investment securities | 56,839 | 52,813 | 70,848 | ||||||||
Net income | $ 99,932 | $ 89,381 | $ 117,090 | $ 104,794 | $ 93,881 | $ 92,799 | $ 123,233 | $ 102,854 | 411,197 | 412,767 | 367,651 |
Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Net income | 3,017 | 98 | (9,111) | ||||||||
Effective Portion of Cumulative Loss on Cash Flow Hedges | Interest rate contracts | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | 33 | 3 | (323) | ||||||||
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest income from investment securities | 46 | 95 | |||||||||
Gain on sale of investments and other assets, net | 2,938 | ||||||||||
Total | $ 2,984 | $ 95 | |||||||||
Foreign Currency Translation | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Gain on sale of investments and other assets, net | $ (8,788) |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets and liabilities measured at fair value | ||
Permitted reinvestment under static investment in VIEs | $ 0 | |
Marketable securities | 906,468 | $ 718,203 |
Domestic servicing rights | 20,557 | 30,759 |
Derivative assets | 52,691 | 33,898 |
VIE Assets | 53,446,364 | 51,045,874 |
Derivative liabilities | 15,415 | 36,200 |
VIE Liabilities | 52,195,042 | 50,000,010 |
Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 52,691 | 33,898 |
Total Assets | 54,453,213 | 52,141,009 |
Derivative liabilities | 15,415 | 36,200 |
Total Liabilities | 52,210,457 | 50,036,210 |
Fair value measurements on recurring basis | Loans held-for-sale | ||
Assets and liabilities measured at fair value | ||
Loans held-for-sale, fair value option | 671,282 | 745,743 |
Fair value measurements on recurring basis | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 209,079 | 247,021 |
Fair value measurements on recurring basis | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 41,347 | 24,191 |
Fair value measurements on recurring basis | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 11,893 | 13,523 |
Fair value measurements on recurring basis | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 20,557 | 30,759 |
Fair value measurements on recurring basis | VIE Assets | ||
Assets and liabilities measured at fair value | ||
VIE Assets | 53,446,364 | 51,045,874 |
Fair value measurements on recurring basis | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
VIE Liabilities | 52,195,042 | 50,000,010 |
Fair value measurements on recurring basis | Level I | ||
Assets and liabilities measured at fair value | ||
Total Assets | 11,893 | 13,523 |
Fair value measurements on recurring basis | Level I | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 11,893 | 13,523 |
Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 52,691 | 33,898 |
Total Assets | 68,810 | 33,898 |
Derivative liabilities | 15,415 | 36,200 |
Total Liabilities | 50,769,011 | 47,847,273 |
Fair value measurements on recurring basis | Level II | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 16,119 | |
Fair value measurements on recurring basis | Level II | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
VIE Liabilities | 50,753,596 | 47,811,073 |
Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 54,372,510 | 52,093,588 |
Total Liabilities | 1,441,446 | 2,188,937 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | ||
Assets and liabilities measured at fair value | ||
Loans held-for-sale, fair value option | 671,282 | 745,743 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 209,079 | 247,021 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 25,228 | 24,191 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 20,557 | 30,759 |
Fair value measurements on recurring basis | Level III | VIE Assets | ||
Assets and liabilities measured at fair value | ||
VIE Assets | 53,446,364 | 51,045,874 |
Fair value measurements on recurring basis | Level III | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
VIE Liabilities | $ 1,441,446 | $ 2,188,937 |
Fair Value - Level III (Details
Fair Value - Level III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: OTTI | $ (109) | ||
Included in earnings: Net accretion | $ 15,253 | 15,208 | $ 16,527 |
Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 49,904,651 | 64,941,714 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (4,776,228) | (16,594,946) | |
Included in earnings: OTTI | (4,374) | (109) | |
Included in earnings: Net accretion | 10,932 | 13,457 | |
Included in OCI | 12,960 | ||
Purchases / Originations | 2,280,409 | 2,284,783 | |
Sales | (2,068,061) | (1,593,629) | |
Issuances | (102,474) | 25,605 | |
Cash repayments / receipts | (292,352) | (158,443) | |
Transfers into Level III | (1,027,075) | 629,293 | |
Transfers out of Level III | 727,475 | 303,295 | |
Consolidations of VIEs | 9,672,943 | 3,729,457 | |
Deconsolidations of VIEs | (1,394,782) | (2,378,990) | |
Balance at the end of the period | 52,931,064 | 49,904,651 | 64,941,714 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (4,816,247) | (16,639,489) | |
Loans held-for-sale | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 745,743 | 63,279 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 40,217 | 66,987 | |
Purchases / Originations | 2,276,788 | 2,265,552 | |
Sales | (2,051,634) | (1,582,050) | |
Cash repayments / receipts | (144,322) | (68,025) | |
Transfers out of Level III | (195,510) | ||
Balance at the end of the period | 671,282 | 745,743 | 63,279 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (3,753) | 3,506 | |
RMBS | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 247,021 | 253,915 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 3,527 | ||
Included in earnings: OTTI | (4,374) | (109) | |
Included in earnings: Net accretion | 10,932 | 13,457 | |
Included in OCI | 12,960 | ||
Purchases / Originations | 7,433 | ||
Sales | (13,264) | ||
Cash repayments / receipts | (34,763) | (40,635) | |
Balance at the end of the period | 209,079 | 247,021 | 253,915 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | 10,398 | 13,241 | |
CMBS | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 24,191 | 31,546 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 2,568 | (3,986) | |
Purchases / Originations | 3,621 | 11,798 | |
Sales | (3,163) | (11,579) | |
Cash repayments / receipts | (23,520) | (9,239) | |
Transfers into Level III | 16,845 | ||
Deconsolidations of VIEs | 4,686 | 5,651 | |
Balance at the end of the period | 25,228 | 24,191 | 31,546 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (352) | 1,711 | |
Domestic Servicing Rights | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 30,759 | 55,082 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (10,202) | (24,323) | |
Balance at the end of the period | 20,557 | 30,759 | 55,082 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (10,202) | (24,323) | |
VIE Assets | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 51,045,874 | 67,123,261 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (5,835,225) | (17,522,632) | |
Consolidations of VIEs | 9,885,200 | 3,925,370 | |
Deconsolidations of VIEs | (1,649,485) | (2,480,125) | |
Balance at the end of the period | 53,446,364 | 51,045,874 | 67,123,261 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (5,835,225) | (17,522,632) | |
VIE liabilities | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | (2,188,937) | ||
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 1,022,887 | ||
Balance at the end of the period | (1,441,446) | (2,188,937) | |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | 1,022,887 | ||
Changes in financial liabilities classified as Level III | |||
Balance at the beginning of the period | (2,585,369) | ||
Total realized and unrealized (losses) gains: | |||
Included in earnings: Change in fair value/ gain on sale | 889,008 | ||
Issuances | (25,605) | ||
Cash repayments / receipts | (102,474) | (40,544) | |
Transfers into Level III | (89,747) | (629,293) | |
Transfers out of Level III | (1,043,920) | 303,295 | |
Consolidations of VIEs | 922,985 | (195,913) | |
Deconsolidations of VIEs | (212,257) | 95,484 | |
Balance at the end of the period | $ 250,017 | $ (2,585,369) | |
Amount of total gains (losses) included in earnings attributable to assets still held at end of period | $ 889,008 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets not carried at fair value: | ||
HTM securities | $ 644,149 | $ 433,468 |
Financial liabilities not carried at fair value: | ||
Unsecured senior notes | 1,998,831 | 2,125,235 |
Carrying Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 9,122,972 | 6,636,898 |
HTM securities | 644,149 | 433,468 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 8,757,804 | 5,847,241 |
Unsecured senior notes | 1,998,831 | 2,125,235 |
Fair Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 9,178,709 | 6,729,302 |
HTM securities | 643,948 | 428,338 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 8,662,548 | 5,810,998 |
Unsecured senior notes | $ 1,945,160 | $ 2,191,285 |
Fair Value - Significant unobse
Fair Value - Significant unobservable inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 20,557 | $ 30,759 |
VIE Assets | 53,446,364 | 51,045,874 |
VIE liabilities | (52,195,042) | (50,000,010) |
Fair value measurements on recurring basis | Loans held-for-sale | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, fair value option | 671,282 | 745,743 |
Fair value measurements on recurring basis | RMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | 209,079 | 247,021 |
Fair value measurements on recurring basis | CMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | 41,347 | 24,191 |
Fair value measurements on recurring basis | Domestic Servicing Rights | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 20,557 | 30,759 |
Fair value measurements on recurring basis | VIE Assets | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE Assets | 53,446,364 | 51,045,874 |
Fair value measurements on recurring basis | VIE liabilities | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | $ (52,195,042) | $ (50,000,010) |
Fair value measurements on recurring basis | Level III | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans Held-for-sale, Measurement Input [Extensible List] | us-gaap:MeasurementInputExpectedDividendRateMember | us-gaap:MeasurementInputExpectedDividendRateMember |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, fair value option | $ 671,282 | $ 745,743 |
Loans Held-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, measurement input | 0.046 | 0.043 |
Loans held-for-sale, duration | 2 years 6 months | 1 year 9 months 18 days |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, measurement input | 0.061 | 0.060 |
Loans held-for-sale, duration | 14 years 4 months 24 days | 12 years 1 month 6 days |
Fair value measurements on recurring basis | Level III | RMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | $ 209,079 | $ 247,021 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Portfolio percentage | 55.00% | 81.00% |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loss severity for specified percentage of portfolio (as a percent) | 45.00% | 45.00% |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Contant prepayment rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.032 | 0.025 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Constant default rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.011 | 0.009 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Loss severity | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0.14 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Delinquency rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.04 | 0.04 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Servicer advances | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.21 | 0.20 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Annual coupon deterioration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Putback amount per projected total collateral loss | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loss severity for specified percentage of portfolio (as a percent) | 80.00% | 80.00% |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Contant prepayment rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.252 | 0.214 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Constant default rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.055 | 0.058 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Loss severity | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.73 | 0.75 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Delinquency rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.31 | 0.33 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Servicer advances | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.83 | 0.83 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Annual coupon deterioration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.014 | 0.008 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Putback amount per projected total collateral loss | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.07 | 0.07 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | $ 25,228 | $ 24,191 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | us-gaap:MeasurementInputExpectedDividendRateMember | us-gaap:MeasurementInputExpectedDividendRateMember |
Fair value measurements on recurring basis | Level III | CMBS | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Available-for-sale debt securities, term | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | CMBS | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 4.735 | 1.685 |
Available-for-sale debt securities, term | 9 years 8 months 12 days | 9 years 8 months 12 days |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 20,557 | $ 30,759 |
Servicing Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Servicing asset, measurement input | 0.0775 | 0.0775 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | Discount rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Servicing asset, measurement input | 0.15 | 0.15 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | Minimum | Control migration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Servicing asset, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | Maximum | Control migration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Servicing asset, measurement input | 0.80 | 0.80 |
Fair value measurements on recurring basis | Level III | VIE Assets | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE Assets | $ 53,446,364 | $ 51,045,874 |
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Derivative Asset, Measurement Input [Extensible List] | us-gaap:MeasurementInputExpectedDividendRateMember | us-gaap:MeasurementInputExpectedDividendRateMember |
Fair value measurements on recurring basis | Level III | VIE Assets | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets, measurement input | 0 | 0 |
VIE duration (in years) | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | VIE Assets | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets, measurement input | 2.909 | 8.266 |
VIE duration (in years) | 20 years 4 months 24 days | 14 years |
Fair value measurements on recurring basis | Level III | VIE liabilities | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | $ (1,441,446) | $ (2,188,937) |
Derivative Liability, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Derivative Liability, Measurement Input [Extensible List] | us-gaap:MeasurementInputExpectedDividendRateMember | us-gaap:MeasurementInputExpectedDividendRateMember |
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 0 years | 0 years |
VIE liabilities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 13 years 8 months 12 days | 14 years |
VIE liabilities, measurement input | 2.909 | 8.266 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes | ||||
Assets | $ 68,262,453 | $ 62,941,289 | ||
Cash | 239,824 | 369,448 | ||
Current | ||||
Federal | 10,508 | 17,495 | $ 8,878 | |
Foreign | 293 | 8 | 938 | |
State | 3,010 | 3,115 | 2,192 | |
Total current | 13,811 | 20,618 | 12,008 | |
Deferred | ||||
Federal | 1,189 | 10,815 | (2,655) | |
Foreign | (447) | |||
State | 330 | 89 | (562) | |
Total deferred | 1,519 | 10,904 | (3,664) | |
Total income tax provision | 15,330 | 31,522 | 8,344 | |
Tax Cuts and Jobs Act | ||||
Deferred income tax provision – Tax Cuts and Jobs Act | 10,400 | |||
Deferred tax assets and liabilities | ||||
Valuation allowance | $ (5,533) | $ (10,573) | ||
Net deferred tax assets (liabilities) | 18,177 | 19,695 | ||
U.S. | ||||
Deferred tax assets and liabilities | ||||
Reserves and accruals | 5,161 | 3,845 | ||
Domestic intangible assets | 14,022 | 17,196 | ||
Investment securities and loans. | (161) | |||
Investment in unconsolidated entities | (1,842) | (2,005) | ||
Deferred income | 134 | 294 | ||
Other temporary differences (asset) | 702 | 526 | ||
Investing and Servicing Segment | TRS entities | ||||
Income Taxes | ||||
Assets | $ 553,500 | $ 673,100 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Rate (Details) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)item |
Reconciliation of statutory tax to effective tax | ||||
Federal statutory tax rate | $ 89,571 | $ 155,501 | $ 131,598 | |
REIT and other non-taxable income | (77,972) | (135,830) | (123,209) | |
State income taxes | 3,038 | 3,091 | 1,634 | |
Federal benefit of state tax deduction | (638) | (1,082) | (572) | |
Valuation allowance | (2,966) | |||
Changes in federal tax code | 10,365 | |||
Other | 1,331 | (523) | 1,859 | |
Total income tax provision | 15,330 | 31,522 | 8,344 | |
Discrete income tax provision | 18,300 | |||
Earnings from unconsolidated entities | 53,900 | |||
Pre-tax income (loss) from foreign operations | $ 1,400 | $ (26,600) | $ 14,100 | |
Reconciliation of statutory tax rate to effective tax rate | ||||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% | 35.00% |
REIT and other non-taxable income (as a percent) | (18.30%) | (30.60%) | (32.70%) | |
State income taxes (as a percent) | 0.70% | 0.70% | 0.40% | |
Federal benefit of state tax deduction (as a percent) | (0.10%) | (0.20%) | (0.20%) | |
Valuation allowance (as a percent) | (0.80%) | |||
Changes in federal tax code (as a percent) | 2.30% | |||
Other (as a percent) | 0.30% | (0.10%) | 0.50% | |
Effective tax rate (as a percent) | 3.60% | 7.10% | 2.20% | |
Change in the valuation allowance with deferred tax assets | ||||
Balance | $ 5,533 | $ 10,573 | ||
(Releases) additions to income tax provisions | $ (5,533) | (2,966) | ||
Foreign currency adjustments reflected in OCI | (417) | |||
Release due to European servicing and advisory business divestiture | (1,585) | |||
Other | (72) | |||
Balance | $ 5,533 | |||
TRS entities | ||||
Reconciliation of statutory tax to effective tax | ||||
Number of entities merged | item | 2 | |||
Net operating loss carryforwards previously subject to a full valuation that became realizable | $ 7,400 | |||
Reduction to income tax provision from reversal of valuation allowance | $ 3,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2018USD ($)contractitem | Dec. 31, 2017item |
Operating leases | ||
Number of contracts | item | 276 | |
Corporate Rents | ||
2,019 | $ 6,385 | |
2,020 | 5,678 | |
2,021 | 2,819 | |
2,022 | 39 | |
Total | 14,921 | |
Sublease Income | ||
2,019 | 1,819 | |
2,020 | 1,660 | |
2,021 | 834 | |
Total | 4,313 | |
Ground Leases | ||
2,019 | 318 | |
2,020 | 319 | |
2,021 | 323 | |
2,022 | 324 | |
2,023 | 326 | |
Thereafter | 11,576 | |
Total | $ 13,186 | |
Interest rate swaps | Derivatives designated as hedging instruments | ||
Operating leases | ||
Number of contracts | item | 2 | |
Infrastructure Lending Segment | Interest rate swaps | Derivatives designated as hedging instruments | ||
Operating leases | ||
Number of contracts | contract | 12 | |
Commitments | Commercial and Residential Lending Segment | ||
Operating leases | ||
Value of loans with future funding commitments | $ 2,200,000 | |
Value of loans with future funding commitments expected to fund | 2,000,000 | |
Outstanding residential mortgage loan purchase commitment | 150,000 | |
Agreement to purchase | 600,000 | |
Commitments | Infrastructure Lending Segment | ||
Operating leases | ||
Value of loans with future funding commitments | 409,700 | |
Revolvers and letters of credit | Infrastructure Lending Segment | ||
Operating leases | ||
Value of loans with future funding commitments | 240,500 | |
Outstanding | 25,500 | |
Delayed draw term loans | Infrastructure Lending Segment | ||
Operating leases | ||
Value of loans with future funding commitments | $ 169,200 |
Segment and Geographic Data - R
Segment and Geographic Data - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||
Interest income from loans | $ 620,543 | $ 513,814 | $ 467,195 | ||||||||
Interest income from investment securities | 56,839 | 52,813 | 70,848 | ||||||||
Servicing fees | 78,766 | 61,446 | 88,956 | ||||||||
Rental income | 349,684 | 249,000 | 152,760 | ||||||||
Other revenues | 3,448 | 2,815 | 4,908 | ||||||||
Total revenues | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 242,832 | $ 226,767 | $ 211,569 | $ 198,720 | 1,109,280 | 879,888 | 784,667 |
Costs and expenses: | |||||||||||
Management fees | 129,455 | 122,699 | 117,451 | ||||||||
Interest expense | 408,188 | 295,666 | 230,799 | ||||||||
General and administrative | 136,132 | 129,587 | 152,941 | ||||||||
Acquisition and investment pursuit costs | 8,587 | 3,472 | 13,462 | ||||||||
Costs of rental operations | 127,068 | 94,258 | 65,101 | ||||||||
Depreciation and amortization | 132,649 | 93,603 | 66,786 | ||||||||
Loan loss allowance, net | 34,821 | (5,458) | 3,759 | ||||||||
Other expense | 732 | 1,422 | 828 | ||||||||
Total costs and expenses | 977,632 | 735,249 | 651,127 | ||||||||
Other income (loss): | |||||||||||
Change in net assets related to consolidated VIEs | 165,892 | 252,434 | 151,593 | ||||||||
Change in fair value of servicing rights | (10,202) | (24,323) | (47,149) | ||||||||
Change in fair value of investment securities, net | 10,345 | (3,811) | (1,401) | ||||||||
Change in fair value of mortgage loans held-for-sale, net | 40,522 | 66,987 | 74,251 | ||||||||
Earnings (loss) from unconsolidated entities | 10,540 | 30,505 | 21,723 | ||||||||
Gain on sale of investments and other assets, net | 59,044 | 20,499 | 1,942 | ||||||||
Gain (loss) on derivative financial instruments, net | 34,603 | (72,532) | 70,734 | ||||||||
Foreign currency (loss) gain, net | (9,245) | 33,671 | (33,967) | ||||||||
OTTI/Impairment | (109) | ||||||||||
Loss on extinguishment of debt | (5,808) | (5,915) | (8,781) | ||||||||
Other (loss) income, net | (812) | 2,244 | 13,510 | ||||||||
Total other income | 294,879 | 299,650 | 242,455 | ||||||||
Income before income taxes | 426,527 | 444,289 | 375,995 | ||||||||
Income tax provision | (15,330) | (31,522) | (8,344) | ||||||||
Net income | 99,932 | 89,381 | 117,090 | 104,794 | 93,881 | 92,799 | 123,233 | 102,854 | 411,197 | 412,767 | 367,651 |
Net income attributable to Starwood Property Trust, Inc. | (25,367) | (11,997) | (2,465) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | $ 92,132 | $ 84,536 | $ 109,230 | $ 99,932 | $ 92,604 | $ 88,428 | $ 117,380 | $ 102,358 | 385,830 | 400,770 | 365,186 |
Operating Segments and Corporate | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 620,543 | 513,814 | 467,195 | ||||||||
Interest income from investment securities | 178,258 | 181,453 | 193,933 | ||||||||
Servicing fees | 104,287 | 111,869 | 145,723 | ||||||||
Rental income | 349,684 | 249,000 | 152,760 | ||||||||
Other revenues | 3,624 | 3,125 | 5,559 | ||||||||
Total revenues | 1,256,396 | 1,059,261 | 965,170 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 129,043 | 122,392 | 117,255 | ||||||||
Interest expense | 409,174 | 296,760 | 231,259 | ||||||||
General and administrative | 135,793 | 129,251 | 152,238 | ||||||||
Acquisition and investment pursuit costs | 8,587 | 3,472 | 13,462 | ||||||||
Costs of rental operations | 127,068 | 94,258 | 65,101 | ||||||||
Depreciation and amortization | 132,649 | 93,603 | 66,786 | ||||||||
Loan loss allowance, net | 34,821 | (5,458) | 3,759 | ||||||||
Other expense | 732 | 1,422 | 828 | ||||||||
Total costs and expenses | 977,867 | 735,700 | 650,688 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of servicing rights | (14,373) | (30,315) | (43,258) | ||||||||
Change in fair value of investment securities, net | 30,464 | 54,508 | (44,074) | ||||||||
Change in fair value of mortgage loans held-for-sale, net | 40,522 | 66,987 | 74,251 | ||||||||
Earnings (loss) from unconsolidated entities | 12,530 | 43,872 | 22,120 | ||||||||
Gain on sale of investments and other assets, net | 59,044 | 20,499 | 1,942 | ||||||||
Gain (loss) on derivative financial instruments, net | 34,603 | (72,532) | 70,734 | ||||||||
Foreign currency (loss) gain, net | (9,245) | 33,671 | (33,967) | ||||||||
OTTI/Impairment | (109) | ||||||||||
Loss on extinguishment of debt | (5,808) | (5,915) | (8,781) | ||||||||
Other (loss) income, net | (812) | 2,857 | 22,332 | ||||||||
Total other income | 146,925 | 113,523 | 61,299 | ||||||||
Income before income taxes | 425,454 | 437,084 | 375,781 | ||||||||
Income tax provision | (15,330) | (31,522) | (8,344) | ||||||||
Net income | 410,124 | 405,562 | 367,437 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (24,294) | (4,792) | (2,251) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 385,830 | 400,770 | 365,186 | ||||||||
Operating segment | Commercial and Residential Lending Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 576,564 | 499,806 | 449,470 | ||||||||
Interest income from investment securities | 50,063 | 46,710 | 47,241 | ||||||||
Servicing fees | 421 | 711 | 782 | ||||||||
Other revenues | 902 | 686 | 242 | ||||||||
Total revenues | 627,950 | 547,913 | 497,735 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 1,838 | 1,933 | 1,829 | ||||||||
Interest expense | 160,769 | 107,167 | 88,000 | ||||||||
General and administrative | 26,324 | 19,981 | 18,517 | ||||||||
Acquisition and investment pursuit costs | 2,490 | 3,240 | 1,665 | ||||||||
Depreciation and amortization | 76 | 66 | |||||||||
Loan loss allowance, net | 34,821 | (5,458) | 3,759 | ||||||||
Other expense | 307 | 149 | |||||||||
Total costs and expenses | 226,625 | 127,078 | 113,770 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of investment securities, net | (2,765) | 175 | 20 | ||||||||
Change in fair value of mortgage loans held-for-sale, net | (6,851) | 2,324 | |||||||||
Earnings (loss) from unconsolidated entities | 5,063 | 3,365 | 3,447 | ||||||||
Gain on sale of investments and other assets, net | 4,019 | (59) | 1,716 | ||||||||
Gain (loss) on derivative financial instruments, net | 17,654 | (35,262) | 41,576 | ||||||||
Foreign currency (loss) gain, net | (7,816) | 33,651 | (37,595) | ||||||||
OTTI/Impairment | (109) | ||||||||||
Loss on extinguishment of debt | (730) | ||||||||||
Other (loss) income, net | 43 | ||||||||||
Total other income | 8,617 | 4,085 | 9,164 | ||||||||
Income before income taxes | 409,942 | 424,920 | 393,129 | ||||||||
Income tax provision | (2,801) | (143) | 1,610 | ||||||||
Net income | 407,141 | 424,777 | 394,739 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (1,451) | (1,419) | (1,398) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 405,690 | 423,358 | 393,341 | ||||||||
Operating segment | Investing and Servicing Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 14,984 | 14,008 | 17,725 | ||||||||
Interest income from investment securities | 127,100 | 134,743 | 146,692 | ||||||||
Servicing fees | 103,866 | 111,158 | 144,941 | ||||||||
Rental income | 57,231 | 50,534 | 38,223 | ||||||||
Other revenues | 1,299 | 1,794 | 5,255 | ||||||||
Total revenues | 304,480 | 312,237 | 352,836 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 72 | 72 | 78 | ||||||||
Interest expense | 27,459 | 19,840 | 15,983 | ||||||||
General and administrative | 84,978 | 94,625 | 121,140 | ||||||||
Acquisition and investment pursuit costs | (663) | (143) | 2,520 | ||||||||
Costs of rental operations | 27,436 | 22,050 | 17,638 | ||||||||
Depreciation and amortization | 21,889 | 19,999 | 16,117 | ||||||||
Other expense | 452 | 1,163 | 315 | ||||||||
Total costs and expenses | 161,623 | 157,606 | 173,791 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of servicing rights | (14,373) | (30,315) | (43,258) | ||||||||
Change in fair value of investment securities, net | 33,229 | 54,333 | (44,094) | ||||||||
Change in fair value of mortgage loans held-for-sale, net | 47,373 | 64,663 | 74,251 | ||||||||
Earnings (loss) from unconsolidated entities | 3,809 | 68,192 | 8,937 | ||||||||
Gain on sale of investments and other assets, net | 26,557 | 20,481 | 226 | ||||||||
Gain (loss) on derivative financial instruments, net | (298) | (2,497) | (4,318) | ||||||||
Foreign currency (loss) gain, net | (2) | 6 | 3,661 | ||||||||
Loss on extinguishment of debt | (318) | ||||||||||
Other (loss) income, net | (1,363) | 1,105 | 8,959 | ||||||||
Total other income | 94,614 | 175,968 | 4,364 | ||||||||
Income before income taxes | 237,471 | 330,599 | 183,409 | ||||||||
Income tax provision | (4,688) | (31,130) | (9,954) | ||||||||
Net income | 232,783 | 299,469 | 173,455 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (5,220) | (3,373) | (853) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 227,563 | 296,096 | 172,602 | ||||||||
Operating segment | Infrastructure Lending Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 28,995 | ||||||||||
Interest income from investment securities | 1,095 | ||||||||||
Other revenues | 619 | ||||||||||
Total revenues | 30,709 | ||||||||||
Costs and expenses: | |||||||||||
Interest expense | 20,949 | ||||||||||
General and administrative | 5,631 | ||||||||||
Acquisition and investment pursuit costs | 6,806 | ||||||||||
Total costs and expenses | 33,386 | ||||||||||
Other income (loss): | |||||||||||
Gain (loss) on derivative financial instruments, net | 1,821 | ||||||||||
Foreign currency (loss) gain, net | (1,425) | ||||||||||
Total other income | 396 | ||||||||||
Income before income taxes | (2,281) | ||||||||||
Income tax provision | (292) | ||||||||||
Net income | (2,573) | ||||||||||
Net income attributable to Starwood Property Trust, Inc. | (2,573) | ||||||||||
Operating segment | Property Segment | |||||||||||
Revenues: | |||||||||||
Rental income | 292,453 | 198,466 | 114,537 | ||||||||
Other revenues | 444 | 645 | 62 | ||||||||
Total revenues | 292,897 | 199,111 | 114,599 | ||||||||
Costs and expenses: | |||||||||||
Interest expense | 75,192 | 46,552 | 22,009 | ||||||||
General and administrative | 7,113 | 4,734 | 3,338 | ||||||||
Acquisition and investment pursuit costs | (46) | 375 | 7,886 | ||||||||
Costs of rental operations | 99,632 | 72,208 | 47,463 | ||||||||
Depreciation and amortization | 110,684 | 73,538 | 50,669 | ||||||||
Other expense | (27) | 110 | 513 | ||||||||
Total costs and expenses | 292,548 | 197,517 | 131,878 | ||||||||
Other income (loss): | |||||||||||
Earnings (loss) from unconsolidated entities | 3,658 | (27,685) | 9,736 | ||||||||
Gain on sale of investments and other assets, net | 28,468 | 77 | |||||||||
Gain (loss) on derivative financial instruments, net | 22,756 | (32,333) | 33,476 | ||||||||
Foreign currency (loss) gain, net | (2) | 14 | (38) | ||||||||
Loss on extinguishment of debt | (2,661) | ||||||||||
Other (loss) income, net | 508 | 7 | 9,102 | ||||||||
Total other income | 52,727 | (59,920) | 52,276 | ||||||||
Income before income taxes | 53,076 | (58,326) | 34,997 | ||||||||
Income tax provision | (7,549) | (249) | |||||||||
Net income | 45,527 | (58,575) | 34,997 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (17,623) | ||||||||||
Net income attributable to Starwood Property Trust, Inc. | 27,904 | (58,575) | 34,997 | ||||||||
Corporate | |||||||||||
Revenues: | |||||||||||
Other revenues | 360 | ||||||||||
Total revenues | 360 | ||||||||||
Costs and expenses: | |||||||||||
Management fees | 127,133 | 120,387 | 115,348 | ||||||||
Interest expense | 124,805 | 123,201 | 105,267 | ||||||||
General and administrative | 11,747 | 9,911 | 9,243 | ||||||||
Acquisition and investment pursuit costs | 1,391 | ||||||||||
Total costs and expenses | 263,685 | 253,499 | 231,249 | ||||||||
Other income (loss): | |||||||||||
Gain (loss) on derivative financial instruments, net | (7,330) | (2,440) | |||||||||
Foreign currency (loss) gain, net | 5 | ||||||||||
Loss on extinguishment of debt | (2,099) | (5,915) | (8,781) | ||||||||
Other (loss) income, net | 1,745 | 4,271 | |||||||||
Total other income | (9,429) | (6,610) | (4,505) | ||||||||
Income before income taxes | (272,754) | (260,109) | (235,754) | ||||||||
Net income | (272,754) | (260,109) | (235,754) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (272,754) | (260,109) | (235,754) | ||||||||
LNR VIEs | |||||||||||
Revenues: | |||||||||||
Interest income from investment securities | (121,419) | (128,640) | (123,085) | ||||||||
Servicing fees | (25,521) | (50,423) | (56,767) | ||||||||
Other revenues | (176) | (310) | (651) | ||||||||
Total revenues | (147,116) | (179,373) | (180,503) | ||||||||
Costs and expenses: | |||||||||||
Management fees | 412 | 307 | 196 | ||||||||
Interest expense | (986) | (1,094) | (460) | ||||||||
General and administrative | 339 | 336 | 703 | ||||||||
Total costs and expenses | (235) | (451) | 439 | ||||||||
Other income (loss): | |||||||||||
Change in net assets related to consolidated VIEs | 165,892 | 252,434 | 151,593 | ||||||||
Change in fair value of servicing rights | 4,171 | 5,992 | (3,891) | ||||||||
Change in fair value of investment securities, net | (20,119) | (58,319) | 42,673 | ||||||||
Earnings (loss) from unconsolidated entities | (1,990) | (13,367) | (397) | ||||||||
Other (loss) income, net | (613) | (8,822) | |||||||||
Total other income | 147,954 | 186,127 | 181,156 | ||||||||
Income before income taxes | 1,073 | 7,205 | 214 | ||||||||
Net income | 1,073 | 7,205 | 214 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | $ (1,073) | $ (7,205) | $ (214) |
Segment and Geographic Data - B
Segment and Geographic Data - Balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 239,824 | $ 369,448 | ||
Restricted cash | 248,041 | 48,825 | ||
Loans held-for-investment, net | 8,532,356 | 6,562,495 | ||
Loans held-for-sale | 1,187,552 | 745,743 | ||
Loans transferred as secured borrowings | 74,346 | 74,403 | ||
Investment securities | 906,468 | 718,203 | ||
Properties, net | 2,784,890 | 2,647,481 | ||
Intangible assets | 145,033 | 183,092 | $ 219,248 | |
Investment in unconsolidated entities | 171,765 | 185,503 | ||
Goodwill | 259,846 | 140,437 | ||
Derivative assets | 52,691 | 33,898 | ||
Accrued interest receivable | 60,355 | 47,747 | ||
Other assets | 152,922 | 138,140 | ||
VIE assets, at fair value | 53,446,364 | 51,045,874 | ||
Total Assets | 68,262,453 | 62,941,289 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 217,663 | 185,117 | ||
Related-party payable | 44,043 | 42,369 | ||
Dividends payable | 133,466 | 125,916 | ||
Derivative liabilities | 15,415 | 36,200 | ||
Secured financing agreements, net | 8,683,565 | 5,773,056 | ||
Unsecured senior notes, net | 1,998,831 | 2,125,235 | ||
Secured borrowings on transferred loans, net | 74,239 | 74,185 | ||
VIE liabilities, at fair value | 52,195,042 | 50,000,010 | ||
Total Liabilities | 63,362,264 | 58,362,088 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 2,808 | 2,660 | ||
Additional paid-in capital | 4,995,156 | 4,715,246 | ||
Treasury stock | (104,194) | (92,104) | ||
Accumulated other comprehensive income (loss) | 58,660 | 69,924 | 36,138 | $ 29,729 |
Retained earnings (accumulated deficit) | (348,998) | (217,312) | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 4,603,432 | 4,478,414 | ||
Non-controlling interests in consolidated subsidiaries | 296,757 | 100,787 | ||
Total Equity | 4,900,189 | 4,579,201 | $ 4,560,073 | $ 4,170,943 |
Total Liabilities and Equity | 68,262,453 | 62,941,289 | ||
Infrastructure Lending Segment | ||||
Assets: | ||||
Goodwill | 119,400 | |||
Investing and Servicing Segment | ||||
Assets: | ||||
Goodwill | 140,400 | 140,400 | ||
Operating Segments and Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 237,270 | 363,722 | ||
Restricted cash | 248,041 | 48,825 | ||
Loans held-for-investment, net | 8,532,356 | 6,562,495 | ||
Loans held-for-sale | 1,187,552 | 745,743 | ||
Loans transferred as secured borrowings | 74,346 | 74,403 | ||
Investment securities | 2,110,508 | 1,718,155 | ||
Properties, net | 2,784,890 | 2,647,481 | ||
Intangible assets | 169,108 | 211,338 | ||
Investment in unconsolidated entities | 193,765 | 206,491 | ||
Goodwill | 259,846 | 140,437 | ||
Derivative assets | 52,691 | 33,898 | ||
Accrued interest receivable | 60,996 | 47,747 | ||
Other assets | 152,948 | 141,008 | ||
Total Assets | 16,064,317 | 12,941,743 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 217,521 | 183,906 | ||
Related-party payable | 44,043 | 42,369 | ||
Dividends payable | 133,466 | 125,916 | ||
Derivative liabilities | 15,415 | 36,200 | ||
Secured financing agreements, net | 8,697,515 | 5,796,756 | ||
Unsecured senior notes, net | 1,998,831 | 2,125,235 | ||
Secured borrowings on transferred loans, net | 74,239 | 74,185 | ||
Total Liabilities | 11,181,030 | 8,384,567 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 2,808 | 2,660 | ||
Additional paid-in capital | 4,995,156 | 4,715,246 | ||
Treasury stock | (104,194) | (92,104) | ||
Accumulated other comprehensive income (loss) | 58,660 | 69,924 | ||
Retained earnings (accumulated deficit) | (348,998) | (217,312) | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 4,603,432 | 4,478,414 | ||
Non-controlling interests in consolidated subsidiaries | 279,855 | 78,762 | ||
Total Equity | 4,883,287 | 4,557,176 | ||
Total Liabilities and Equity | 16,064,317 | 12,941,743 | ||
Operating segment | Commercial and Residential Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 14,385 | 14,580 | ||
Restricted cash | 28,324 | 21,555 | ||
Loans held-for-investment, net | 7,072,220 | 6,558,699 | ||
Loans held-for-sale | 670,155 | 613,287 | ||
Loans transferred as secured borrowings | 74,346 | 74,403 | ||
Investment securities | 1,050,920 | 694,012 | ||
Investment in unconsolidated entities | 35,274 | 45,028 | ||
Derivative assets | 18,174 | 6,487 | ||
Accrued interest receivable | 39,862 | 46,650 | ||
Other assets | 13,958 | 5,648 | ||
Total Assets | 9,017,618 | 8,080,349 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 26,508 | 23,054 | ||
Related-party payable | 20 | |||
Derivative liabilities | 1,290 | 20,386 | ||
Secured financing agreements, net | 4,405,599 | 3,466,487 | ||
Secured borrowings on transferred loans, net | 74,239 | 74,185 | ||
Total Liabilities | 4,507,636 | 3,584,132 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Additional paid-in capital | 1,430,503 | 1,818,559 | ||
Accumulated other comprehensive income (loss) | 53,516 | 57,914 | ||
Retained earnings (accumulated deficit) | 3,015,676 | 2,609,050 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 4,499,695 | 4,485,523 | ||
Non-controlling interests in consolidated subsidiaries | 10,287 | 10,694 | ||
Total Equity | 4,509,982 | 4,496,217 | ||
Total Liabilities and Equity | 9,017,618 | 8,080,349 | ||
Operating segment | Infrastructure Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 13 | |||
Restricted cash | 175,659 | |||
Loans held-for-investment, net | 1,456,779 | |||
Loans held-for-sale | 469,775 | |||
Investment securities | 60,768 | |||
Goodwill | 119,409 | |||
Derivative assets | 1,066 | |||
Accrued interest receivable | 6,982 | |||
Other assets | 20,472 | |||
Total Assets | 2,310,923 | |||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 26,476 | |||
Derivative liabilities | 477 | |||
Secured financing agreements, net | 1,524,551 | |||
Total Liabilities | 1,551,504 | |||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Additional paid-in capital | 761,992 | |||
Retained earnings (accumulated deficit) | (2,573) | |||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 759,419 | |||
Total Equity | 759,419 | |||
Total Liabilities and Equity | 2,310,923 | |||
Operating segment | Property Segment | ||||
Assets: | ||||
Cash and cash equivalents | 27,408 | 10,388 | ||
Restricted cash | 25,144 | 12,491 | ||
Properties, net | 2,512,847 | 2,364,806 | ||
Intangible assets | 90,889 | 116,081 | ||
Investment in unconsolidated entities | 114,362 | 110,704 | ||
Derivative assets | 32,733 | 26,775 | ||
Accrued interest receivable | 359 | 68 | ||
Other assets | 67,098 | 71,929 | ||
Total Assets | 2,870,840 | 2,713,242 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 67,415 | 62,890 | ||
Derivative liabilities | 37 | 13,063 | ||
Secured financing agreements, net | 1,884,187 | 1,621,885 | ||
Total Liabilities | 1,951,639 | 1,697,838 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Additional paid-in capital | 645,561 | 957,329 | ||
Accumulated other comprehensive income (loss) | 5,208 | 12,076 | ||
Retained earnings (accumulated deficit) | 13,570 | (14,335) | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 664,339 | 955,070 | ||
Non-controlling interests in consolidated subsidiaries | 254,862 | 60,334 | ||
Total Equity | 919,201 | 1,015,404 | ||
Total Liabilities and Equity | 2,870,840 | 2,713,242 | ||
Operating segment | Investing and Servicing Segment | ||||
Assets: | ||||
Cash and cash equivalents | 31,449 | 39,446 | ||
Restricted cash | 11,679 | 10,289 | ||
Loans held-for-investment, net | 3,357 | 3,796 | ||
Loans held-for-sale | 47,622 | 132,456 | ||
Investment securities | 998,820 | 1,024,143 | ||
Properties, net | 272,043 | 282,675 | ||
Intangible assets | 78,219 | 95,257 | ||
Investment in unconsolidated entities | 44,129 | 50,759 | ||
Goodwill | 140,437 | 140,437 | ||
Derivative assets | 718 | 636 | ||
Accrued interest receivable | 616 | 243 | ||
Other assets | 49,363 | 59,676 | ||
Total Assets | 1,678,452 | 1,839,813 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 75,655 | 74,426 | ||
Related-party payable | 53 | 31 | ||
Derivative liabilities | 1,423 | 85 | ||
Secured financing agreements, net | 585,258 | 411,526 | ||
Total Liabilities | 662,389 | 486,068 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Additional paid-in capital | 87,779 | 659,062 | ||
Accumulated other comprehensive income (loss) | (64) | (66) | ||
Retained earnings (accumulated deficit) | 913,642 | 687,015 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 1,001,357 | 1,346,011 | ||
Non-controlling interests in consolidated subsidiaries | 14,706 | 7,734 | ||
Total Equity | 1,016,063 | 1,353,745 | ||
Total Liabilities and Equity | 1,678,452 | 1,839,813 | ||
Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 164,015 | 299,308 | ||
Restricted cash | 7,235 | 4,490 | ||
Accrued interest receivable | 13,177 | 786 | ||
Other assets | 2,057 | 3,755 | ||
Total Assets | 186,484 | 308,339 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 21,467 | 23,536 | ||
Related-party payable | 43,990 | 42,318 | ||
Dividends payable | 133,466 | 125,916 | ||
Derivative liabilities | 12,188 | 2,666 | ||
Secured financing agreements, net | 297,920 | 296,858 | ||
Unsecured senior notes, net | 1,998,831 | 2,125,235 | ||
Total Liabilities | 2,507,862 | 2,616,529 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 2,808 | 2,660 | ||
Additional paid-in capital | 2,069,321 | 1,280,296 | ||
Treasury stock | (104,194) | (92,104) | ||
Retained earnings (accumulated deficit) | (4,289,313) | (3,499,042) | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | (2,321,378) | (2,308,190) | ||
Total Equity | (2,321,378) | (2,308,190) | ||
Total Liabilities and Equity | 186,484 | 308,339 | ||
LNR VIEs | ||||
Assets: | ||||
Cash and cash equivalents | 2,554 | 5,726 | ||
Investment securities | (1,204,040) | (999,952) | ||
Intangible assets | (24,075) | (28,246) | ||
Investment in unconsolidated entities | (22,000) | (20,988) | ||
Accrued interest receivable | (641) | |||
Other assets | (26) | (2,868) | ||
VIE assets, at fair value | 53,446,364 | 51,045,874 | ||
Total Assets | 52,198,136 | 49,999,546 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 142 | 1,211 | ||
Secured financing agreements, net | (13,950) | (23,700) | ||
VIE liabilities, at fair value | 52,195,042 | 50,000,010 | ||
Total Liabilities | 52,181,234 | 49,977,521 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Non-controlling interests in consolidated subsidiaries | 16,902 | 22,025 | ||
Total Equity | 16,902 | 22,025 | ||
Total Liabilities and Equity | $ 52,198,136 | $ 49,999,546 |
Segment and Geographic Data - F
Segment and Geographic Data - Foreign revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Revenues | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 242,832 | $ 226,767 | $ 211,569 | $ 198,720 | $ 1,109,280 | $ 879,888 | $ 784,667 |
Foreign | |||||||||||
Revenues | |||||||||||
Revenues | $ 90,500 | $ 82,000 | $ 100,100 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Revenues | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 242,832 | $ 226,767 | $ 211,569 | $ 198,720 | $ 1,109,280 | $ 879,888 | $ 784,667 |
Net income | 99,932 | 89,381 | 117,090 | 104,794 | 93,881 | 92,799 | 123,233 | 102,854 | 411,197 | 412,767 | 367,651 |
Net income attributable to Starwood Property Trust, Inc. | $ 92,132 | $ 84,536 | $ 109,230 | $ 99,932 | $ 92,604 | $ 88,428 | $ 117,380 | $ 102,358 | $ 385,830 | $ 400,770 | $ 365,186 |
Basic earnings per share: | |||||||||||
Earnings per share — Basic (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.41 | $ 0.38 | $ 0.35 | $ 0.34 | $ 0.45 | $ 0.39 | $ 1.44 | $ 1.53 | $ 1.52 |
Diluted earnings per share: | |||||||||||
Earnings per share — Diluted (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.40 | $ 0.38 | $ 0.35 | $ 0.33 | $ 0.44 | $ 0.39 | $ 1.42 | $ 1.52 | $ 1.50 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 28, 2019 | Jan. 01, 2019 | Nov. 09, 2018 | Aug. 08, 2018 | May 04, 2018 | Feb. 28, 2018 | Nov. 08, 2017 | Aug. 09, 2017 | May 09, 2017 | Feb. 23, 2017 | Nov. 02, 2016 | Aug. 04, 2016 | May 09, 2016 | Feb. 25, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Subsequent Events | |||||||||||||||||
Dividend declared (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | $ 1.92 | $ 1.92 | ||
2019 Notes | |||||||||||||||||
Subsequent Events | |||||||||||||||||
Shares issued to settle redemption | 12.4 | ||||||||||||||||
Cash payments to settle redemptions | $ 25.5 | ||||||||||||||||
Subsequent event | |||||||||||||||||
Subsequent Events | |||||||||||||||||
Dividend declared (in dollars per share) | $ 0.48 | ||||||||||||||||
Subsequent event | 2019 Notes | |||||||||||||||||
Subsequent Events | |||||||||||||||||
Value of shares issued to settle redemption | $ 78 | ||||||||||||||||
Shares issued to settle redemption | 3.6 | ||||||||||||||||
Cash payments to settle redemptions | $ 12 |
Schedule III-Real Estate and _2
Schedule III-Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Schedule III-Residential Real Estate | ||||
Encumbrances | $ 2,120,726 | |||
Initial Cost to Company | ||||
Land | 628,625 | |||
Depreciable Property | 2,286,215 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Depreciable Property | 57,963 | |||
Gross Amounts Carried | ||||
Land | 628,654 | |||
Depreciable Property | 2,344,149 | |||
Total | 2,972,803 | $ 2,755,050 | $ 1,986,285 | $ 928,060 |
Accumulated Depreciation | (187,913) | $ (107,569) | $ (41,565) | $ (8,835) |
Aggregate cost for federal income tax purposes | $ 3,200,000 | |||
Hotel - U. S. Midwest | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Initial Cost to Company | ||||
Depreciable Property | $ 5,565 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 599 | |||
Gross Amounts Carried | ||||
Depreciable Property | 6,164 | |||
Total | 6,164 | |||
Accumulated Depreciation | $ (767) | |||
Medical office - U.S. Midwest | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 7 | |||
Encumbrances | $ 70,184 | |||
Initial Cost to Company | ||||
Land | 2,764 | |||
Depreciable Property | 97,802 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 358 | |||
Gross Amounts Carried | ||||
Land | 2,764 | |||
Depreciable Property | 98,160 | |||
Total | 100,924 | |||
Accumulated Depreciation | $ (6,510) | |||
Medical office - U.S. North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 7 | |||
Encumbrances | $ 157,492 | |||
Initial Cost to Company | ||||
Land | 11,283 | |||
Depreciable Property | 176,999 | |||
Gross Amounts Carried | ||||
Land | 11,283 | |||
Depreciable Property | 176,999 | |||
Total | 188,282 | |||
Accumulated Depreciation | $ (10,980) | |||
Medical office - U.S. South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 87,106 | |||
Initial Cost to Company | ||||
Land | 7,930 | |||
Depreciable Property | 117,740 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 98 | |||
Gross Amounts Carried | ||||
Land | 7,930 | |||
Depreciable Property | 117,838 | |||
Total | 125,768 | |||
Accumulated Depreciation | $ (7,751) | |||
Medical office - U.S. South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 8 | |||
Encumbrances | $ 104,637 | |||
Initial Cost to Company | ||||
Land | 15,921 | |||
Depreciable Property | 127,014 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 475 | |||
Gross Amounts Carried | ||||
Land | 15,921 | |||
Depreciable Property | 127,489 | |||
Total | 143,410 | |||
Accumulated Depreciation | $ (9,130) | |||
Medical office - U.S. West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 73,408 | |||
Initial Cost to Company | ||||
Land | 13,415 | |||
Depreciable Property | 107,844 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 247 | |||
Gross Amounts Carried | ||||
Land | 13,415 | |||
Depreciable Property | 108,091 | |||
Total | 121,506 | |||
Accumulated Depreciation | $ (8,432) | |||
Mixed Use - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 8,667 | |||
Initial Cost to Company | ||||
Land | 1,002 | |||
Depreciable Property | 14,323 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 174 | |||
Gross Amounts Carried | ||||
Land | 1,002 | |||
Depreciable Property | 14,497 | |||
Total | 15,499 | |||
Accumulated Depreciation | $ (1,216) | |||
Multi-family - Ireland | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 11,887 | |||
Initial Cost to Company | ||||
Land | 8,711 | |||
Depreciable Property | 9,250 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 324 | |||
Gross Amounts Carried | ||||
Land | 8,711 | |||
Depreciable Property | 9,574 | |||
Total | 18,285 | |||
Accumulated Depreciation | $ (1,219) | |||
Multi-family - U.S., South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 64 | |||
Encumbrances | $ 880,149 | |||
Initial Cost to Company | ||||
Land | 253,109 | |||
Depreciable Property | 932,848 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 28,668 | |||
Gross Amounts Carried | ||||
Land | 253,138 | |||
Depreciable Property | 961,487 | |||
Total | 1,214,625 | |||
Accumulated Depreciation | $ (77,455) | |||
Office - Ireland | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 11 | |||
Encumbrances | $ 350,968 | |||
Initial Cost to Company | ||||
Land | 156,104 | |||
Depreciable Property | 282,798 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 6,770 | |||
Gross Amounts Carried | ||||
Land | 156,104 | |||
Depreciable Property | 289,568 | |||
Total | 445,672 | |||
Accumulated Depreciation | $ (34,598) | |||
Office - U.S. North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 16,500 | |||
Initial Cost to Company | ||||
Land | 7,250 | |||
Depreciable Property | 10,699 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 326 | |||
Gross Amounts Carried | ||||
Land | 7,250 | |||
Depreciable Property | 11,025 | |||
Total | 18,275 | |||
Accumulated Depreciation | $ (585) | |||
Office - U.S., South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 4 | |||
Encumbrances | $ 56,329 | |||
Initial Cost to Company | ||||
Land | 27,497 | |||
Depreciable Property | 46,708 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 10,819 | |||
Gross Amounts Carried | ||||
Land | 27,497 | |||
Depreciable Property | 57,527 | |||
Total | 85,024 | |||
Accumulated Depreciation | $ (7,646) | |||
Office - U.S., South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 28,333 | |||
Initial Cost to Company | ||||
Land | 8,188 | |||
Depreciable Property | 28,035 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 1,779 | |||
Gross Amounts Carried | ||||
Land | 8,188 | |||
Depreciable Property | 29,814 | |||
Total | 38,002 | |||
Accumulated Depreciation | $ (1,382) | |||
Office - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Initial Cost to Company | ||||
Depreciable Property | $ 4,261 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 2,791 | |||
Gross Amounts Carried | ||||
Depreciable Property | 7,052 | |||
Total | 7,052 | |||
Accumulated Depreciation | $ (559) | |||
Retail - U.S., Mid Atlantic | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 11,500 | |||
Initial Cost to Company | ||||
Land | 6,432 | |||
Depreciable Property | 6,315 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 2,085 | |||
Gross Amounts Carried | ||||
Land | 6,432 | |||
Depreciable Property | 8,400 | |||
Total | 14,832 | |||
Accumulated Depreciation | $ (1,374) | |||
Retail - U.S., Midwest | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 7 | |||
Encumbrances | $ 79,300 | |||
Initial Cost to Company | ||||
Land | 24,384 | |||
Depreciable Property | 109,445 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 1,354 | |||
Gross Amounts Carried | ||||
Land | 24,384 | |||
Depreciable Property | 110,799 | |||
Total | 135,183 | |||
Accumulated Depreciation | $ (5,616) | |||
Retail - U.S., North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 22,192 | |||
Initial Cost to Company | ||||
Land | 4,989 | |||
Depreciable Property | 21,077 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 851 | |||
Gross Amounts Carried | ||||
Land | 4,989 | |||
Depreciable Property | 21,928 | |||
Total | 26,917 | |||
Accumulated Depreciation | $ (2,213) | |||
Retail - U.S., South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 5 | |||
Encumbrances | $ 42,200 | |||
Initial Cost to Company | ||||
Land | 21,353 | |||
Depreciable Property | 60,621 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 32 | |||
Gross Amounts Carried | ||||
Land | 21,353 | |||
Depreciable Property | 60,653 | |||
Total | 82,006 | |||
Accumulated Depreciation | $ (2,484) | |||
Retail - U.S., South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 77,074 | |||
Initial Cost to Company | ||||
Land | 37,458 | |||
Depreciable Property | 78,579 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 100 | |||
Gross Amounts Carried | ||||
Land | 37,458 | |||
Depreciable Property | 78,679 | |||
Total | 116,137 | |||
Accumulated Depreciation | $ (5,372) | |||
Retail - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 33,000 | |||
Initial Cost to Company | ||||
Land | 18,633 | |||
Depreciable Property | 36,794 | |||
Gross Amounts Carried | ||||
Land | 18,633 | |||
Depreciable Property | 36,794 | |||
Total | 55,427 | |||
Accumulated Depreciation | $ (1,607) | |||
Self-storage - U.S., North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 9,800 | |||
Initial Cost to Company | ||||
Land | 2,202 | |||
Depreciable Property | 11,498 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 113 | |||
Gross Amounts Carried | ||||
Land | 2,202 | |||
Depreciable Property | 11,611 | |||
Total | 13,813 | |||
Accumulated Depreciation | $ (1,017) |
Schedule III-Real Estate and _3
Schedule III-Real Estate and Accumulated Depreciation - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate activity | |||
Beginning balance | $ 2,755,050 | $ 1,986,285 | $ 928,060 |
Additions during the year: | |||
Acquisitions (1) | 445,170 | 725,955 | 1,048,985 |
Acquisitions through foreclosure | 7,248 | ||
Improvements | 25,764 | 18,575 | 15,766 |
Contingent consideration issued | 38,211 | ||
Measurement period adjustments | 660 | ||
Foreign currency translation | 59,508 | ||
Total additions | 509,145 | 804,698 | 1,071,999 |
Deductions during the year: | |||
Costs of real estate sold | (269,989) | (35,774) | |
Foreign currency translation | (21,260) | (13,774) | |
Other | (143) | (159) | |
Total deductions | (291,392) | (35,933) | (13,774) |
Ending balance | 2,972,803 | 2,755,050 | 1,986,285 |
Accumulated depreciation activity | |||
Beginning balance | 107,569 | 41,565 | 8,835 |
Depreciation expense | 91,188 | 65,253 | 33,350 |
Disposition/write-offs | (9,389) | (1,785) | |
Foreign currency translation | (1,455) | 2,536 | (620) |
Ending balance | $ 187,913 | $ 107,569 | $ 41,565 |
Schedule IV-Mortgage Loans on_2
Schedule IV-Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Mortgage Loans on Real Estate | ||||
Face Amount | $ 9,876,545 | $ 7,397,182 | ||
Carrying Amount | $ 9,794,254 | 7,382,641 | $ 5,946,274 | $ 6,263,517 |
Weighted average spread of loans (as a percent) | 4.30% | |||
Principal Amount of Delinquent Loans | $ 40,503 | |||
Aggregate cost for federal income tax purposes | 7,800,000 | |||
Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Loan loss allowance | (39,151) | |||
Prepaid Loan Costs, Net | (1,552) | |||
Multifamily, Brooklyn, NY | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | 269,846 | |||
Carrying Amount | $ 267,316 | |||
Multifamily, Brooklyn, NY | Individually Significant First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.25% | |||
Multifamily, Brooklyn, NY | Individually Significant First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.25% | |||
Multifamily, Various, United Kingdom | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | $ 290,286 | |||
Carrying Amount | $ 287,549 | |||
Multifamily, Various, United Kingdom | Individually Significant First Mortgages | 3 Month GBP LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Office, Irvine, CA | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | $ 298,369 | |||
Carrying Amount | $ 296,237 | |||
Office, Irvine, CA | Individually Significant First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Office, Irvine, CA | Individually Significant First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Office, New York City, NY | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | $ 239,250 | |||
Carrying Amount | $ 237,690 | |||
Office, New York City, NY | Individually Significant First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.25% | |||
Office, New York City, NY | Individually Significant First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.50% | |||
Hotel, International, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 29,798 | |||
Number of loans | loan | 1 | |||
Hotel, International, Floating | Aggregated First Mortgages | Three-month EURIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.90% | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 79,129 | |||
Number of loans | loan | 2 | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.35% | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.75% | |||
Hotel, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 53,477 | |||
Number of loans | loan | 4 | |||
Hotel, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Hotel, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.13% | |||
Hotel, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 343,880 | |||
Number of loans | loan | 5 | |||
Hotel, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.50% | |||
Hotel, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.90% | |||
Hotel, South East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 119,042 | |||
Number of loans | loan | 4 | |||
Hotel, South East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.75% | |||
Hotel, South East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.10% | |||
Hotel, Various, Floating | ||||
Mortgage Loans on Real Estate | ||||
Number of loans | loan | 1 | |||
Hotel, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 331,445 | |||
Number of loans | loan | 5 | |||
Hotel, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Hotel, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.50% | |||
Hotel, Various, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 99,284 | |||
Hotel, Various, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.63% | |||
Hotel, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 299,361 | |||
Number of loans | loan | 11 | |||
Hotel, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Hotel, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.17% | |||
Industrial, South East, Fixed | ||||
Mortgage Loans on Real Estate | ||||
Number of loans | loan | 2 | |||
Industrial, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 73,220 | |||
Weighted Average Coupon (as a percent) | 8.18% | |||
Principal Amount of Delinquent Loans | $ 24,253 | |||
Number of loans | loan | 8 | |||
Industrial, South East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 2,747 | |||
Weighted Average Coupon (as a percent) | 8.18% | |||
Industrial, South East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 63,224 | |||
Number of loans | loan | 4 | |||
Industrial, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Industrial, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.75% | |||
Mixed Use, International, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 101,483 | |||
Number of loans | loan | 2 | |||
Mixed Use, International, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 70,440 | |||
Number of loans | loan | 2 | |||
Mixed Use, International, Floating | Aggregated First Mortgages | Three-month EURIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.85% | |||
Mixed Use, International, Floating | Aggregated First Mortgages | 1-month GBP LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 5.75% | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 118,133 | |||
Number of loans | loan | 4 | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.10% | |||
Mixed Use, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 74,346 | |||
Number of loans | loan | 1 | |||
Mixed Use, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Mixed Use, International, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 22,434 | |||
Weighted Average Coupon (as a percent) | 8.50% | |||
Number of loans | loan | 1 | |||
Mixed Use, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 110,515 | |||
Number of loans | loan | 2 | |||
Mixed Use, South East, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 5.00% | |||
Mixed Use, South East, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 12.00% | |||
Mixed Use South East Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 9,875 | |||
Number of loans | loan | 1 | |||
Mixed Use South East Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.25% | |||
Mixed Use, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 303,098 | |||
Number of loans | loan | 9 | |||
Mixed Use, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Mixed Use, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.70% | |||
Mixed Use, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 184,239 | |||
Number of loans | loan | 2 | |||
Mixed Use, West, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.37% | |||
Multi Family, Midwest, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 2,874 | |||
Number of loans | loan | 2 | |||
Multi Family, Midwest, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 6.28% | |||
Multi Family, Midwest, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 6.54% | |||
Multi-Family, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 207,168 | |||
Number of loans | loan | 6 | |||
Multi-Family, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Multi-Family, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.10% | |||
Multi-Family, North East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 2,729 | |||
Number of loans | loan | 1 | |||
Multi-Family, North East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.25% | |||
Multifamily, South West Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 240,821 | |||
Number of loans | loan | 10 | |||
Multifamily, South West Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Multifamily, South West Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.15% | |||
Multi-Family, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 5,308 | |||
Number of loans | loan | 12 | |||
Multi-Family, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.35% | |||
Multi-Family, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.83% | |||
Office , International , Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 53,113 | |||
Weighted Average Coupon (as a percent) | 5.35% | |||
Number of loans | loan | 1 | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 287,154 | |||
Number of loans | loan | 8 | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.00% | |||
Office, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 13,084 | |||
Office, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 237,161 | |||
Number of loans | loan | 8 | |||
Office, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 1.75% | |||
Office, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.15% | |||
Office, Midwest, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.88% | |||
Office, Midwest, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.00% | |||
Office, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 461,038 | |||
Number of loans | loan | 18 | |||
Office, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Office, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.00% | |||
Office, North East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 66,240 | |||
Number of loans | loan | 1 | |||
Office, North East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.00% | |||
Office , South East , Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 112,034 | |||
Number of loans | loan | 4 | |||
Office , South East , Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.25% | |||
Office, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 398,462 | |||
Number of loans | loan | 12 | |||
Office, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Office, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.70% | |||
Office, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 420,025 | |||
Number of loans | loan | 16 | |||
Office, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Office, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.45% | |||
Other, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 60,133 | |||
Number of loans | loan | 4 | |||
Other, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Other, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 11.17% | |||
Other, Midwest, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Number of loans | loan | 3 | |||
Other, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 34,283 | |||
Number of loans | loan | 1 | |||
Other, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.30% | |||
Other, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 40,975 | |||
Weighted Average Coupon (as a percent) | 10.00% | |||
Number of loans | loan | 1 | |||
Other, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 109,552 | |||
Number of loans | loan | 1 | |||
Other, Various, Floating | Aggregated First Mortgages | 3-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.00% | |||
Other, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 104,982 | |||
Number of loans | loan | 4 | |||
Other, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Other, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.50% | |||
Office, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 84,998 | |||
Number of loans | loan | 3 | |||
Office, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 8.72% | |||
Office, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 11.00% | |||
Other, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Residential, North East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 48,271 | |||
Weighted Average Coupon (as a percent) | 8.00% | |||
Number of loans | loan | 1 | |||
Residential, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 295,970 | |||
Number of loans | loan | 11 | |||
Residential, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.00% | |||
Residential, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.60% | |||
Residential, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 56,612 | |||
Number of loans | loan | 4 | |||
Residential, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Residential, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.75% | |||
Retail Mid Atlantic, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 157 | |||
Weighted Average Coupon (as a percent) | 7.07% | |||
Number of loans | loan | 1 | |||
Retail , Midwest ,Floating | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 963 | |||
Retail , Midwest ,Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 38,189 | |||
Number of loans | loan | 4 | |||
Retail , Midwest ,Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.75% | |||
Retail , Midwest ,Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.75% | |||
Retail , Midwest ,Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Number of loans | loan | 1 | |||
Retail , Midwest ,Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.85% | |||
Retail, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 77,794 | |||
Number of loans | loan | 1 | |||
Retail, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.75% | |||
Retail, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 63,611 | |||
Number of loans | loan | 4 | |||
Retail, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Retail, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 15.25% | |||
Retail, South West, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 482 | |||
Weighted Average Coupon (as a percent) | 8.04% | |||
Number of loans | loan | 1 | |||
Retail, West, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 1,073 | |||
Number of loans | loan | 2 | |||
Retail, West, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 7.07% | |||
Retail, West, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 7.26% | |||
Multi Family, Mid Atlantic, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 2,968 | |||
Weighted Average Coupon (as a percent) | 10.50% | |||
Number of loans | loan | 1 | |||
Multi-family, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 3,831 | |||
Number of loans | loan | 1 | |||
Multi-family, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.75% | |||
Office, South East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 7,392 | |||
Weighted Average Coupon (as a percent) | 8.25% | |||
Number of loans | loan | 1 | |||
Retail, Midwest, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 11,977 | |||
Weighted Average Coupon (as a percent) | 7.16% | |||
Principal Amount of Delinquent Loans | $ 11,977 | |||
Number of loans | loan | 2 | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 671,282 | |||
Principal Amount of Delinquent Loans | $ 4,273 | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 3.25% | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 9.13% | |||
Loans Held-for-Sale, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 46,734 | |||
Loans Held-for-Sale, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.00% | |||
Loans Held-for-Sale, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.15% | |||
Commercial and Residential Lending Segment and Investing and Servicing Segment | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 7,806,699 | $ 7,357,034 | $ 5,946,274 | $ 6,263,517 |
Schedule IV-Mortgage Loans on_3
Schedule IV-Mortgage Loans on Real Estate - Activity of loan portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | $ 7,382,641 | $ 5,946,274 | $ 6,263,517 |
Acquisitions/origination/additional funding | 6,723,144 | 5,500,539 | 4,502,842 |
Capitalized Interest | 63,047 | 74,339 | 80,992 |
Basis of loans sold | (3,082,347) | (1,634,717) | (2,266,901) |
Loan maturities/principal repayments | (3,272,666) | (2,658,522) | (2,742,462) |
Discount accretion/premium amortization | 38,099 | 39,084 | 48,384 |
Changes in fair value | 40,522 | 66,987 | 74,251 |
Unrealized foreign currency translation (loss) gain | (32,341) | 42,356 | (47,906) |
Change in loan loss allowance, net | (34,821) | 5,458 | (3,759) |
Transfer to/from other asset classifications | (364) | 843 | 37,316 |
Balance at the end of the period | 9,794,254 | 7,382,641 | 5,946,274 |
Commercial and Residential Lending Segment and Investing and Servicing Segment | |||
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | 7,357,034 | 5,946,274 | 6,263,517 |
Acquisitions/origination/additional funding | 6,543,873 | 5,494,837 | 4,502,842 |
Capitalized Interest | 62,445 | 73,784 | 80,992 |
Basis of loans sold | (3,082,347) | (1,634,717) | (2,266,901) |
Loan maturities/principal repayments | (3,086,107) | (2,657,696) | (2,742,462) |
Discount accretion/premium amortization | 37,408 | 38,560 | 48,384 |
Changes in fair value | 40,522 | 66,987 | 74,251 |
Unrealized foreign currency translation (loss) gain | (26,645) | 42,356 | (47,906) |
Change in loan loss allowance, net | (34,821) | 5,458 | (3,759) |
Transfer to/from other asset classifications | (4,663) | (18,809) | 37,316 |
Balance at the end of the period | $ 7,806,699 | $ 7,357,034 | $ 5,946,274 |