Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 20, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-34436 | ||
Entity Registrant Name | Starwood Property Trust, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-0247747 | ||
Entity Address, Address Line One | 591 West Putnam Avenue | ||
Entity Address, City or Town | Greenwich | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06830 | ||
City Area Code | 203 | ||
Local Phone Number | 422-7700 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | STWD | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 282,613,156 | ||
Entity Central Index Key | 0001465128 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 6,183,846,104 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 478,388 | $ 239,824 |
Restricted cash | 95,643 | 248,041 |
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 10,586,074 | 8,532,356 |
Loans held-for-sale ($764,622 and $671,282 held at fair value) | 884,150 | 1,187,552 |
Loans transferred as secured borrowings | 74,346 | |
Investment securities ($239,600 and $262,319 held at fair value) | 810,238 | 906,468 |
Properties, net | 2,266,440 | 2,784,890 |
Intangible assets ($16,917 and $20,557 held at fair value) | 85,700 | 145,033 |
Investment in unconsolidated entities | 84,329 | 171,765 |
Goodwill | 259,846 | 259,846 |
Derivative assets | 28,943 | 52,691 |
Accrued interest receivable | 64,087 | 60,355 |
Other assets | 211,323 | 152,922 |
Total Assets | 78,042,336 | 68,262,453 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 212,006 | 217,663 |
Related-party payable | 40,925 | 44,043 |
Dividends payable | 137,427 | 133,466 |
Derivative liabilities | 8,740 | 15,415 |
Secured financing agreements, net | 8,906,048 | 8,683,565 |
Collateralized loan obligations, net | 928,060 | |
Unsecured senior notes, net | 1,928,622 | 1,998,831 |
Secured borrowings on transferred loans, net | 74,239 | |
Total Liabilities | 72,905,322 | 63,362,264 |
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, 287,380,891 issued and 282,200,751 outstanding as of December 31, 2019 and 280,839,692 issued and 275,659,552 outstanding as of December 31, 2018 | 2,874 | 2,808 |
Additional paid-in capital | 5,132,532 | 4,995,156 |
Treasury stock (5,180,140 shares) | (104,194) | (104,194) |
Accumulated other comprehensive income | 50,932 | 58,660 |
Accumulated deficit | (381,719) | (348,998) |
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,700,425 | 4,603,432 |
Non-controlling interests in consolidated subsidiaries | 436,589 | 296,757 |
Total Equity | 5,137,014 | 4,900,189 |
Total Liabilities and Equity | 78,042,336 | 68,262,453 |
Primary beneficiary | ||
Assets: | ||
Total Assets | 62,187,175 | 53,446,364 |
Liabilities: | ||
Total Liabilities | $ 60,743,494 | $ 52,195,042 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans held-for-investment, net held at fair value | $ 671,572 | $ 0 |
Loans-held-for-sale held at fair value | 764,622 | 671,282 |
Investment securities held at fair value | 239,600 | 262,319 |
Intangible assets held at fair value | $ 16,917 | $ 20,557 |
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 | 287,380,891 | 280,839,692 |
Common stock, shares outstanding | 282,200,751 | 275,659,552 |
Treasury stock, shares | 5,180,140 | 5,180,140 |
Total Assets | $ 78,042,336 | $ 68,262,453 |
Total Liabilities | 72,905,322 | 63,362,264 |
Primary beneficiary | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | 60,743,494 | $ 52,195,042 |
Primary beneficiary | Collateralized Loan Obligation | ||
Total Assets | 1,100,000 | |
Total Liabilities | $ 900,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Revenues: | ||
Interest income from loans | $ 724,013 | $ 513,814 |
Interest income from investment securities | 76,629 | 52,813 |
Servicing fees | 54,296 | 61,446 |
Rental income | 337,966 | 249,000 |
Other revenues | 3,515 | 2,815 |
Total revenues | 1,196,419 | 879,888 |
Costs and expenses: | ||
Management fees | 119,132 | 122,699 |
Interest expense | 508,729 | 295,666 |
General and administrative | 155,112 | 129,587 |
Acquisition and investment pursuit costs | 1,056 | 3,472 |
Costs of rental operations | 122,982 | 94,258 |
Depreciation and amortization | 113,322 | 93,603 |
Loan loss provision, net | 7,126 | (5,458) |
Other expense | 2,365 | 1,422 |
Total costs and expenses | 1,029,824 | 735,249 |
Other income (loss): | ||
Change in net assets related to consolidated VIEs | 236,309 | 252,434 |
Change in fair value of servicing rights | (3,640) | (24,323) |
Change in fair value of investment securities, net | 833 | (3,811) |
Change in fair value of mortgage loans held-for-sale, net | 71,601 | 66,987 |
(Loss) earnings from unconsolidated entities | (101,354) | 30,505 |
Gain on sale of investments and other assets, net | 188,028 | 20,499 |
(Loss) gain on derivative financial instruments, net | (6,310) | (72,532) |
Foreign currency gain (loss), net | 17,582 | 33,671 |
Total other-than-temporary impairment ("OTTI") | (267) | (180) |
Noncredit portion of OTTI recognized in other comprehensive income | 267 | 71 |
Net impairment losses recognized in earnings | (109) | |
Loss on extinguishment of debt | (19,270) | (5,915) |
Other (loss) income, net | (207) | 2,244 |
Total other income | 383,572 | 299,650 |
Income before income taxes | 550,167 | 444,289 |
Income tax provision | (13,232) | (31,522) |
Net income | 536,935 | 412,767 |
Net income attributable to non-controlling interests | (27,271) | (11,997) |
Net income attributable to Starwood Property Trust, Inc. | $ 509,664 | $ 400,770 |
Earnings per share data attributable to Starwood Property Trust, Inc.: | ||
Basic (in dollars per share) | $ 1.81 | $ 1.53 |
Diluted (in dollars per share) | $ 1.79 | $ 1.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 536,935 | $ 411,197 | $ 412,767 |
Other comprehensive (loss) income (net change by component): | |||
Cash flow hedges | (25) | 51 | |
Available-for-sale securities | (2,519) | (4,374) | 12,960 |
Foreign currency translation | (5,209) | (6,865) | 20,775 |
Other comprehensive (loss) income | (7,728) | (11,264) | 33,786 |
Comprehensive income | 529,207 | 399,933 | 446,553 |
Less: Comprehensive income attributable to non-controlling interests | (27,271) | (25,367) | (11,997) |
Comprehensive income attributable to Starwood Property Trust, Inc. | $ 501,936 | $ 374,566 | $ 434,556 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total Starwood Property Trust, Inc. Stockholders' Equity2018 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity2019 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity2023 Notes | Total Starwood Property Trust, Inc. Stockholders' Equity | Common stock2019 Notes | Common stock | Additional Paid-In Capital2018 Notes | Additional Paid-In Capital2019 Notes | Additional Paid-In Capital2023 Notes | Additional Paid-In Capital | Treasury Stock2023 Notes | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income | Non-Controlling Interests | 2018 Notes | 2019 Notes | 2023 Notes | Total |
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 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 | |||||||||||||||||
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 | |||||||||||||||||
Equity component of Convertible Senior Notes issuance | 32,400 | ||||||||||||||||||
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 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 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Proceeds from DRIP Plan | 767 | 767 | $ 767 | ||||||||||||||||
Proceeds from DRIP Plan (in shares) | 33,454 | ||||||||||||||||||
Redemption of Class A Units for common stock | 21,070 | $ 10 | 21,060 | (21,070) | 21,070 | ||||||||||||||
Redemption of Class A Units for common stock (in shares) | 974,176 | ||||||||||||||||||
Equity offering costs | (27) | (27) | (27) | ||||||||||||||||
Conversion of 2019 Convertible Notes | $ 67,562 | $ 36 | $ 67,526 | $ 67,562 | |||||||||||||||
Conversion of 2019 Convertible Notes (Shares) | 3,611,918 | ||||||||||||||||||
Share-based compensation | 36,155 | $ 15 | 36,140 | 36,155 | |||||||||||||||
Share-based compensation (in shares) | 1,387,346 | ||||||||||||||||||
Manager incentive fee paid in stock | 11,915 | $ 5 | 11,910 | 11,915 | |||||||||||||||
Manager incentive fee paid in stock (in shares) | 534,305 | ||||||||||||||||||
Net income | 509,664 | 509,664 | 27,271 | 536,935 | |||||||||||||||
Dividends declared | (542,385) | (542,385) | (542,385) | ||||||||||||||||
Other comprehensive loss, net | (7,728) | (7,728) | (7,728) | ||||||||||||||||
VIE non-controlling interests | (2,808) | (2,808) | |||||||||||||||||
Contributions from non-controlling interests | 186,397 | 186,397 | |||||||||||||||||
Distributions to non-controlling interests | (49,958) | (49,958) | |||||||||||||||||
Balance at Dec. 31, 2019 | $ 4,700,425 | $ 2,874 | $ 5,132,532 | $ (104,194) | $ (381,719) | $ 50,932 | $ 436,589 | $ 5,137,014 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 287,380,891 | 5,180,140 | 287,380,891 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | Nov. 08, 2019 | Aug. 07, 2019 | May 08, 2019 | Feb. 28, 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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
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, € in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 536,935 | $ 411,197 | $ 412,767 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Amortization of deferred financing costs, premiums and discounts on secured borrowings | 36,088 | 27,832 | 19,298 |
Amortization of discounts and deferred financing costs on unsecured senior notes | 7,760 | 11,785 | 21,531 |
Accretion of net discount on investment securities | (11,791) | (15,253) | (15,208) |
Accretion of net deferred loan fees and discounts | (35,387) | (38,099) | (39,084) |
Share-based compensation | 36,155 | 22,758 | 18,151 |
Share-based component of incentive fees | 11,915 | 20,792 | 19,599 |
Change in fair value of investment securities | (833) | (10,345) | 3,811 |
Change in fair value of consolidated VIEs | (67,798) | (17,408) | (69,483) |
Change in fair value of servicing rights | 3,640 | 10,202 | 24,323 |
Change in fair value of loans held-for-sale | (71,601) | (40,522) | (66,987) |
Change in fair value of derivatives | 11,441 | (30,828) | 68,309 |
Foreign currency (loss) gain, net | (17,582) | 9,158 | (33,439) |
Gain on sale of investments and other assets | (188,028) | (59,044) | (20,499) |
Impairment charges on properties and related intangibles | 1,494 | 1,869 | 1,146 |
Loan loss provision, net | 7,126 | 34,821 | (5,458) |
Depreciation and amortization | 113,394 | 130,838 | 90,896 |
Loss (earnings) from unconsolidated entities | 101,354 | (10,540) | (30,505) |
Distributions of earnings from unconsolidated entities | 11,631 | 5,917 | 67,542 |
Loss on extinguishment of debt | (19,270) | (5,808) | (5,915) |
Origination and purchase of loans held-for-sale, net of principal collections | (3,543,503) | (2,105,232) | (2,199,390) |
Proceeds from sale of loans held-for-sale | 3,177,640 | 2,246,989 | 1,582,050 |
Changes in operating assets and liabilities: | |||
Related-party payable, net | (3,118) | 1,674 | 4,551 |
Accrued and capitalized interest receivable, less purchased interest | (114,156) | (62,261) | (94,077) |
Other assets | (29,787) | 8,207 | (35,300) |
Accounts payable, accrued expenses and other liabilities | (5,458) | 25,155 | 22,702 |
Net cash (used in) provided by operating activities | (13,199) | 585,470 | (246,839) |
Cash Flows from Investing Activities: | |||
Origination and purchase of loans held-for-investment | (5,473,399) | (4,428,891) | (3,234,987) |
Proceeds from principal collections on loans | 3,132,368 | 3,057,430 | 2,562,515 |
Proceeds from loans sold | 1,141,411 | 835,849 | 52,609 |
Purchase of investment securities | (98,258) | (492,400) | (98,394) |
Proceeds from sales of investment securities | 7,326 | 16,427 | 11,579 |
Proceeds from principal collections on investment securities | 205,660 | 382,924 | 232,793 |
Infrastructure lending business combination | (2,158,553) | ||
Real estate business combinations, net of cash and restricted cash acquired | (17,639) | ||
Proceeds from sales of real estate and related businesses, net of cash sold | 343,896 | 311,874 | 55,739 |
Purchases and additions to properties and other assets | (30,865) | (54,772) | (573,930) |
Investment in unconsolidated entities | (18,055) | (3,100) | (32,186) |
Distribution of capital from unconsolidated entities | 18,127 | 21,461 | 14,252 |
Payments for purchase or termination of derivatives | (42,835) | (29,581) | (40,518) |
Proceeds from termination of derivatives | 38,756 | 20,523 | 31,456 |
Return of investment basis in purchased derivative asset | 151 | ||
Net cash used in investing activities | (775,868) | (2,520,809) | (1,036,560) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings | 10,167,339 | 9,412,715 | 6,273,600 |
Principal repayments on and repurchases of borrowings | (8,671,085) | (6,360,610) | (4,586,509) |
Payment of deferred financing costs | (72,438) | (67,218) | (22,703) |
Proceeds from common stock issuances | 767 | 608 | 702 |
Payment of equity offering costs | (27) | (22) | (647) |
Payment of dividends | (538,424) | (509,966) | (501,663) |
Contributions from non-controlling interests | 183,520 | 13,407 | 106 |
Distributions to non-controlling interests | (49,958) | (256,404) | (96,010) |
Purchase of treasury stock | (12,090) | ||
Issuance of debt of consolidated VIEs | 184,540 | 102,474 | 25,605 |
Repayment of debt of consolidated VIEs | (373,155) | (410,453) | (137,208) |
Distributions of cash from consolidated VIEs | 45,642 | 92,283 | 92,411 |
Net cash provided by financing activities | 876,721 | 2,004,724 | 1,047,684 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 87,654 | 69,385 | (235,715) |
Cash, cash equivalents and restricted cash, beginning of year | 487,865 | 418,273 | 650,755 |
Effect of exchange rate changes on cash | (1,488) | 207 | 3,233 |
Cash, cash equivalents and restricted cash, end of year | 574,031 | 487,865 | 418,273 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 481,483 | 337,605 | 250,690 |
Income taxes paid | 11,284 | 10,900 | 20,767 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividends declared, but not yet paid | 136,715 | 133,237 | 125,844 |
Consolidation of VIEs (VIE asset/liability additions) | 10,368,817 | 9,885,200 | 3,925,370 |
Deconsolidation of VIEs (VIE asset/liability reductions) | 377,071 | 1,649,485 | 2,480,125 |
Assets of Ireland real estate subsidiary sold, net of cash | 440,966 | ||
Liabilities of Ireland real estate subsidiary sold | 360,049 | ||
Reclassification of residential loans held-for-sale to held-for-investment | 340,948 | ||
Settlement of 2019 Convertible Notes in shares | 75,525 | 271,243 | |
Settlement of loans transferred as secured borrowings | 74,692 | 35,000 | |
Net assets acquired through foreclosure | 53,278 | ||
Redemption of Class A Units for common stock | 21,070 | ||
Lease liabilities arising from obtaining right-of-use assets | 9,626 | ||
Net assets acquired from consolidated VIEs | 8,613 | 27,737 | 31,547 |
Fair value of assets acquired, net of cash and restricted cash | 2,167,652 | 18,507 | |
Fair value of liabilities assumed | 9,099 | 760 | |
Contribution of Woodstar II Portfolio net assets from non-controlling interests | 2,877 | $ 416,626 | $ 145,177 |
Loan principal collections temporarily held at master servicer | $ 44,426 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2019 | |
Business and Organization | |
Business and Organization | 1. Business and Organizatio n 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. 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, 2019 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”)—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 by Mr. Sternlicht. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policie s 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, we have financed a pool of our loans through a collateralized loan obligation (“CLO”) which is considered a VIE. We also hold interests in certain other entities which are considered VIEs as the limited partners of those 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 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 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 We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. 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 residential mortgage loans held-for-investment were made in order to maintain consistency across all our residential mortgage loans. 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 Business Combinations Under ASC 805, Business Combinations 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. 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 or we have elected to apply the fair value option at purchase. Loan Impairment We evaluate each loan classified as held-for-investment not under the fair value option 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 Servicing Rights Intangibles Our identifiable intangible assets include domestic special servicing rights for which 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. 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. Leases On January 1, 2019, ASC 842 , Leases , became effective for the Company. ASC 842 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 affected by this ASC. We elected to apply the provisions of ASC 842 as of January 1, 2019 and not to retrospectively adjust prior periods presented. Such application did not result in any cumulative-effect adjustment as of January 1, 2019. We elected the “package of practical expedients” for transition purposes, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs for leases that commenced prior to January 1, 2019. We also elected not to apply the recognition provisions of ASC 842 to short-term leases, which have original lease terms of 12 months or less. As a lessor, we elected not to separate nonlease components, such as reimbursements from tenants for common area maintenance (“CAM”), from lease components for all classes of underlying assets, and continue to recognize such nonlease components ratably in rental income. We also elected to continue to exclude from rental income all sales, use and other similar taxes collected from lessees. As required by ASC 842, we no longer record as revenues and expenses lessor costs (such as property taxes) paid directly by the lessees. The application of ASC 842 has had no material effect on our consolidated financial statements, as all of our leases, as both lessor and lessee, are currently classified as operating leases, which are subject to essentially the same straight-line revenue and expense recognition as in the past. As a lessee, our only significant long-term lease as of January 1, 2019 resulted in the recognition of a $12.0 million lease liability and corresponding right-of-use asset , which are classified within “ Accounts payable, accrued expenses and other liabilities ” and “ Other assets ”, respectively, in our consolidated balance sheet as of December 31, 2019. 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 fair value practicability exception described below 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 other equity investments set forth 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 other 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, estimated fair values of underlying assets and available information at the time the analyses are prepared. 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, 2019 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 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 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 3. Acquisitions and Divestiture s Ireland Portfolio Sale On December 23, 2019, we sold the U.S. entity which held the net assets related to our Ireland Portfolio. The properties within the entity were sold for a gross purchase price of million. After certain adjustments, including a million, plus estimated net working capital. In connection with the transaction, the buyer assumed our existing third party debt totaling million. Our basis in these assets was million of accumulated depreciation. The resulting gain, after selling costs, was ) million. This amount is included within gain on sale of investments and other assets in our consolidated statement of operations. Upon receipt of the net proceeds from the sale, we unwound all of our foreign currency hedges related to this portfolio, which had a fair value of $16.6 million at the unwind date. 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 year ended December 31, 2018. Investing and Servicing Segment Property Portfolio During the year ended December 31, 2019, our Investing and Servicing Segment acquired $8.6 million in net assets of a commercial real estate property from a CMBS trust for a gross purchase price of $8.8 million. This property, aggregated with the controlling interests in 15 remaining commercial real estate properties acquired from CMBS trusts prior to December 31, 2018 for an aggregate acquisition price of $227.3 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, our Investing and Servicing Segment acquired $52.7 million in net assets of three commercial real estate properties from CMBS trusts for a gross purchase price of $53.1 million. During the year ended December 31, 2017, our Investing and Servicing Segment acquired the net equity of million. We applied the business combination provisions of ASC 805 in accounting for the acquisitions in 2017 since they occurred prior to our adoption of ASU 2017-01 in December 2017, whereas we applied the asset acquisition provisions of ASC 805 for the acquisitions in 2018 and 2019. During the year ended December 31, 2019, we sold four properties within the Investing and Servicing Segment for $145.9 million. In connection with these sales, we recognized a total gain of $59.7 million within gain on sale of investments and other assets in our consolidated statements of operations, of which $5.3 million was attributable to non-controlling interests. During the year ended December 31, 2018, we sold nine properties within the Investing and Servicing Segment for $77.9 million. In connection with these sales, we recognized a total gain of million was attributable to non-controlling interests. million non-controlling interest in the property. During the year ended December 31, 2017, we sold million. In connection with these sales, we recognized a total gain of 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. As of the acquisition dates, the Infrastructure Lending Portfolio was 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 were 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. We applied the provisions of ASC 805, Business Combinations, 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% . 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. The Class A unitholders have the right to redeem their Class A Units for consideration equal to the current share price of the Company’s common stock on a -for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. 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. During the years ended December 31, 2019 and 2018, we issued 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. 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 comprised 5.3 million square feet, are geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in 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 years ended December 31, 2019 and 2017. 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. In doing so, we recorded all identifiable assets acquired and liabilities assumed at fair value as of the respective acquisition dates. The following table summarizes the identified assets acquired and liabilities assumed as of the respective acquisition dates (amounts in thousands): 2018 2017 Infrastructure REIS Equity Assets acquired: Lending Segment Portfolio Loans held-for-investment $ 1,649,630 $ — Loans held-for-sale 319,710 — Investment securities 65,060 — Properties — 38,770 Intangible assets — 11,955 Accrued interest receivable 13,843 — Other assets — 85 Total identifiable assets acquired 2,048,243 50,810 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 1,516 Derivative liabilities 282 — Total liabilities assumed 9,099 1,516 Net assets acquired $ 2,039,144 $ 49,294 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 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 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Cash. | |
Restricted Cash | 4. Restricted Cas h A summary of our restricted cash as of December 31, 2019 and 2018 is as follows (amounts in thousands): As of December 31, 2019 2018 Cash restricted by lender $ 40,818 $ 175,659 Cash collateral for derivative financial instruments 37,912 37,245 Funds held on behalf of borrowers and tenants 11,903 12,838 Other restricted cash 5,010 22,299 $ 95,643 $ 248,041 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Loans | |
Loans | 5. Loan s 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 for either. The following tables summarize our investments in mortgages and loans by subordination class as of December 31, 2019 and 2018 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2019 Value Amount Coupon (1) (years)(2) First mortgages (3) $ 7,928,026 $ 7,962,788 5.8 % 2.0 First priority infrastructure loans 1,397,448 1,416,164 5.6 % 4.9 Subordinated mortgages (4) 75,724 77,055 8.8 % 3.4 Mezzanine loans (3) 484,164 484,408 11.0 % 1.9 Residential loans, fair value option (5) 671,572 654,925 6.1 % 3.8 Other 62,555 66,525 8.2 % 1.6 Total loans held-for-investment 10,619,489 10,661,865 Loans held-for-sale, fair value option, residential (5) 605,384 587,144 6.2 % 3.9 Loans held-for-sale, fair value option, commercial 159,238 160,635 3.9 % 10.0 Loans held-for-sale, infrastructure 119,724 121,271 3.3 % 2.1 Total gross loans 11,503,835 11,530,915 Loan loss allowance (33,611) — Total net loans $ 11,470,224 $ 11,530,915 December 31, 2018 First mortgages (3) $ 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 (4) 52,778 53,996 8.9 % 3.7 Mezzanine loans (3) 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 (39,151) — Total net loans $ 9,794,254 $ 9,876,545 (1) Calculated using LIBOR or other applicable index rates as of December 31, 2019 and 2018 for variable rate loans. (2) 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. (3) 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 $967.0 million and $1.0 billion being classified as first mortgages as of December 31, 2019 and 2018, respectively. (4) 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. (5) During the year ended December 31, 2019, $340.9 million of residential loans held-for-sale were reclassified into residential loans held-for-investment. 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 resulted in distributions in excess of basis being recognized within interest income in our consolidated statements of operations. There were no distributions from profit participations received during the years ended December 31, 2019 and 2017. As of December 31, 2019, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average December 31, 2019 Value Spread Above Index Commercial loans $ 8,030,499 4.2 % First priority infrastructure loans 1,397,448 3.8 % Total variable rate loans held-for-investment $ 9,427,947 4.2 % 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—Loan to collateral value ratio (“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%. The risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows as of December 31, 2019 and 2018 (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 December 31, 2019 1 $ 503 $ — $ — $ — $ 23,550 $ — $ 24,053 0.2 % 2 4,186,776 — 37,980 120,372 31,178 — 4,376,306 38.0 % 3 3,509,601 — 25,767 363,792 — — 3,899,160 33.9 % 4 40,436 — — — — — 40,436 0.4 % 5 59,116 — — — — — 59,116 0.5 % N/A 131,594 (1) 1,397,448 (2) 11,977 (1) — 7,827 (1) — 1,548,846 13.5 % $ 7,928,026 $ 1,397,448 $ 75,724 $ 484,164 $ 62,555 $ — 9,947,917 Residential loans held-for-investment, fair value option 671,572 5.8 % Loans held-for-sale 884,346 7.7 % Total gross loans $ 11,503,835 100.0 % December 31, 2018 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) Principally represents loans individually evaluated for impairment in accordance with ASC 310-10. (2) First priority infrastructure loans were not risk rated as the Company is in the process of developing a risk rating policy for these loans. In accordance with our loan impairment policy, during the year ended December 31, 2018, we recorded impairment charges of $38.2 million. During the year ended December 31, 2019, we recorded an impairment charge of million non-accretable difference). The During the year ended December 31, 2019, we also charged-off an allowance for impaired loans of $8.3 million relating to a first mortgage loan on a grocery distribution facility located in Montgomery, Alabama that we foreclosed on in March 2019 and obtained physical possession of the underlying collateral property. As of the foreclosure date, our carrying value of the loan totaled $9.0 million ($20.9 million unpaid principal balance net of an $8.3 million allowance for impaired loan and $3.6 million of unamortized discount). In April 2019, we foreclosed on a first mortgage loan on a grocery distribution facility located in Orlando, Florida and obtained physical possession of the underlying collateral property. As of the foreclosure date, the appraised value of the property exceeded the loan ($21.9 million unpaid principal and interest balance net of a $3.4 million unamortized discount, and no reserve for impaired loan). As of December 31, 2019, we had allowances for impaired loans of $29.9 million. Of this amount, Also included in the allowance for impaired loans is $8.3 million related to two subordinated mortgages on department stores located in the Greater Chicago area. Our recorded investment in these loans totaled $12.2 million ($12.0 million unpaid principal balance and $8.3 million allowance for impaired loans) as of December 31, 2019. 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, 2019 was $172.8 million. As of December 31, 2019, we held TDRs with unfunded commitments of $3.1 million. There were no TDRs for which interest income was recognized during the year ended December 31, 2019. As of December 31, 2019, certain of the residential conversion project first mortgage and mezzanine loans with a recorded investment of $93.6 million and the department store loans discussed above were 90 days or greater past due, as were $7.4 million of residential loans. In accordance with our interest income recognition policy, these loans were placed on non-accrual status. 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) allowance for infrastructure loans held-for-sale where amortized cost is in excess of fair value, plus (iv) 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, 2019 2018 2017 Allowance for loan losses at January 1 $ 39,151 $ 4,330 $ 9,788 Provision for (reversal of) loan losses 3,812 (3,384) (5,458) Provision for impaired loans 3,314 38,205 — Charge-offs (12,666) — — Recoveries — — — Allowance for loan losses at December 31 $ 33,611 $ 39,151 $ 4,330 Recorded investment in loans related to the allowance for loan loss $ 291,768 $ 275,112 $ 170,941 The activity in our loan portfolio was as follows (amounts in thousands): For the year ended December 31, 2019 2018 2017 Balance at January 1 $ 9,794,254 $ 7,382,641 $ 5,946,274 Acquisitions/originations/additional funding 9,094,714 6,723,144 5,500,539 Acquisition of Infrastructure Lending Portfolio — 1,969,340 — Capitalized interest (1) 110,632 63,047 74,339 Basis of loans sold (2) (4,311,390) (3,082,347) (1,634,717) Loan maturities/principal repayments (3,304,838) (3,272,666) (2,658,522) Discount accretion/premium amortization 35,387 38,099 39,084 Changes in fair value 71,601 40,522 66,987 Unrealized foreign currency translation gain (loss) 40,155 (32,341) 42,356 Loan loss provision, net (7,126) (34,821) 5,458 Loan foreclosures (27,303) — — Transfer to/from other asset classifications (25,862) (364) 843 Balance at December 31 $ 11,470,224 $ 9,794,254 $ 7,382,641 (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. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities | |
Investment Securities | 6. Investment Securitie s Investment securities were comprised of the following as of December 31, 2019 and 2018 (amounts in thousands): Carrying Value as of December 31, 2019 December 31, 2018 RMBS, available-for-sale $ 189,576 $ 209,079 RMBS, fair value option (1) 147,034 87,879 CMBS, fair value option (1), (2) 1,295,363 1,157,508 Held-to-maturity (“HTM”) debt securities, amortized cost 570,638 644,149 Equity security, fair value 12,664 11,893 Subtotal — 2,215,275 2,110,508 VIE eliminations (1) (1,405,037) (1,204,040) Total investment securities $ 810,238 $ 906,468 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $186.6 million and $8.4 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2019 and 2018, respectively. 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, 2019 Purchases $ — $ 120,103 $ 238,213 $ 91,162 $ — $ (351,220) $ 98,258 Sales — 41,501 150,365 — — (184,540) 7,326 Principal collections 26,929 16,500 40,490 167,383 — (45,642) 205,660 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 (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, 2019 and 2018. 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, 2019 and 2018 (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, 2019 RMBS $ 148,385 $ (9,805) $ 138,580 $ (314) $ 51,310 $ — $ 50,996 $ 189,576 December 31, 2018 RMBS $ 165,461 $ (9,897) $ 155,564 $ (31) $ 53,546 $ — $ 53,515 $ 209,079 Weighted Average Coupon (1) Weighted Average WAL December 31, 2019 RMBS 3.1 % BB- 5.6 December 31, 2018 RMBS 3.7 % CCC- 6.0 (1) Calculated using the December 31, 2019 and 2018 one-month LIBOR rate of 1.763% and 2.503%, respectively, for floating rate securities. (2) Represents the remaining 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, 2019, approximately $160.9 million, or 84.9%, of RMBS were variable rate and paid interest at LIBOR plus a weighted average spread of 1.24%. 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%. 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, 2019 and 2018 (amounts in thousands): December 31, 2019 December 31, 2018 Principal balance $ 278,853 $ 309,497 Accretable yield (56,108) (54,779) Non-accretable difference (84,165) (99,154) Total discount (140,273) (153,933) Amortized cost $ 138,580 $ 155,564 The principal balance of credit deteriorated RMBS was $263.7 million and $290.8 million as of December 31, 2019 and 2018, respectively. Accretable yield related to these securities totaled $50.3 million and $49.5 million as of December 31, 2019 and 2018, respectively. The following table discloses the changes to accretable yield and non-accretable difference for our RMBS during the years ended December 31, 2019 and 2018 (amounts in thousands): Non-Accretable Accretable Yield Difference Balance as of January 1, 2018 $ 55,712 $ 121,867 Accretion of discount (10,932) — Principal write-downs, net — (3,682) Sales (9,032) — Transfer to/from non-accretable difference 19,031 (19,031) Balance as of December 31, 2018 54,779 99,154 Accretion of discount (9,945) — Principal write-downs, net — (3,715) Transfer to/from non-accretable difference 11,274 (11,274) Balance as of December 31, 2019 $ 56,108 $ 84,165 We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $1.5 million, $1.8 million and $1.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, 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, 2019 and 2017. 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, 2019 and 2018, 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, 2019 RMBS $ — $ 1,380 $ — $ (314) As of December 31, 2018 RMBS $ 2,148 $ — $ (31) $ — As of both December 31, 2019 and 2018, there was one security with unrealized losses reflected in the table above. After evaluating the security 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 security’s estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the security, it was not considered more likely than not that we would be forced to sell the security 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, 2019, 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 $1.3 billion and $3.0 billion, respectively. As of December 31, 2019, 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 $147.0 million and $87.4 million, respectively. The $1.4 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 $37.4 million at December 31, 2019) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities. As of December 31, 2019, $118.2 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, 2019 and 2018 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value December 31, 2019 CMBS $ 383,473 $ 946 $ (3,001) $ 381,418 Preferred interests 142,012 1,148 (353) 142,807 Infrastructure bonds 45,153 — (651) 44,502 Total $ 570,638 $ 2,094 $ (4,005) $ 568,727 December 31, 2018 CMBS $ 408,556 $ 2,435 $ (3,349) $ 407,642 Preferred interests 174,825 703 — 175,528 Infrastructure bonds 60,768 178 (168) 60,778 Total $ 644,149 $ 3,316 $ (3,517) $ 643,948 The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2019 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 284,251 $ — $ 5,371 $ 289,622 One to three years 99,222 141,659 — 240,881 Three to five years — 353 — 353 Thereafter — — 39,782 39,782 Total $ 383,473 $ 142,012 $ 45,153 $ 570,638 As of December 31, 2019 and 2018, $19.8 million and $21.2 million, respectively, of our infrastructure bonds with an aggregate principal balance of $32.8 million and $34.2 million, respectively, were originally acquired with deteriorated credit quality and had no accretable yield and an aggregate non-accretable difference of $13.0 million. 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 $12.7 million and $11.9 million as of December 31, 2019 and 2018, respectively. As of December 31, 2019, our shares represent an approximate 2% interest in SEREF. |
Properties
Properties | 12 Months Ended |
Dec. 31, 2019 | |
Properties | |
Properties | 7. Propertie s Our properties are held within the following portfolios: 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 $629.5 million and federal, state and county sponsored financing and other debt of $478.2 million as of December 31, 2019. 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 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 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, which were acquired in September 2017, 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 $192.4 million as of December 31, 2019. Refer to Note 3 for further discussion of the Master Lease Portfolio. Investing and Servicing Segment Property Portfolio The REIS Equity Portfolio is comprised of 16 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 $277.8 million and debt of $187.9 million as of December 31, 2019. Refer to Note 3 for further discussion of the REIS Equity Portfolio. The table below summarizes our properties held as of December 31, 2019 and December 31, 2018 (dollars in thousands): Depreciable Life December 31, 2019 December 31, 2018 Property Segment Land and land improvements 0 – 15 years $ 484,397 $ 648,972 Buildings and building improvements 5 – 45 years 1,687,756 1,980,283 Furniture & fixtures 3 – 7 years 52,567 46,048 Investing and Servicing Segment Land and land improvements 0 – 15 years 54,052 82,332 Buildings and building improvements 3 – 40 years 182,048 213,010 Furniture & fixtures 2 – 5 years 2,139 2,158 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 7 years 11,386 — Buildings and building improvements 10 – 23 years 16,285 — Properties, cost 2,490,630 2,972,803 Less: accumulated depreciation (224,190) (187,913) Properties, net $ 2,266,440 $ 2,784,890 (1) Represents properties acquired through loan foreclosure. Refer to Note 5 for further discussion. During the year ended December 31, 2019, we sold $407.2 million of net property assets relating to the Ireland Portfolio. Refer to Note 3 for further discussion. Also during the year ended December 31, 2019, we sold million. In connection with these REIS Equity Portfolio sales, we recognized a total gain of million was attributable to non-controlling interests. 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. In connection with these sales, we recognized a total gain of $55.1 million and $19.9 million, respectively, within gain on sale of investments and other assets in our consolidated statements of operations, of which $5.1 million and $3.3 million, respectively, was attributable to non-controlling interests. 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): 2020 $ 177,516 2021 95,524 2022 89,602 2023 79,177 2024 71,271 Thereafter 688,437 Total $ 1,201,527 |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Unconsolidated Entities | |
Investment in Unconsolidated Entities | 8. Investment in Unconsolidated Entitie s 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) 2019 2018 Equity method: Retail Fund (see Note 16) 33% $ — $ 114,362 Equity interest in a natural gas power plant (2) 10% 25,862 — Investor entity which owns equity in an online real estate company 50% 9,473 9,372 Equity interests in commercial real estate 50% 1,907 6,294 Equity interest in and advances to a residential mortgage originator (3) N/A 12,002 9,082 Various 25% - 50% 8,339 6,984 57,583 146,094 Other: Equity interest in a servicing and advisory business (4) 4% — 6,207 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 2% 17,521 10,239 26,746 25,671 $ 84,329 $ 171,765 (1) (2) (3) (4) We own a 33% equity interest in a fund that owns four regional shopping malls (the “Retail Fund”). The fund is an investment company which measures its assets at fair value on a recurring basis. We report our interest in the Retail Fund on a three-month lag basis at its liquidation value. During the three months ended March 31, 2019, we recorded a In November 2019, the Retail Fund’s secured financing matured and was not repaid. In light of these events, we commissioned independent appraisals of the underlying assets in order to estimate the fair value of our investment in the Retail Fund as of December 31, 2019. Based upon the results of these appraisals, we recorded an impairment charge of million against the remainder of our investment as of December 31, 2019. These amounts were recognized within (loss) earnings from unconsolidated entities in our consolidated statement of operations during the year ended December 31, 2019. The impairment charge resulted in a As of December 31, 2019, 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 investor entity which owns equity in an online real estate company sold approximately 88% of its interest in the online real estate company and we received a pre-tax cash distribution of $66.0 million from the investor entity related to the sale. 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 during the year ended December 31, 2017. Other than our equity interests in the Retail Fund and 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, 2019. During the year ended December 31, 2019, we did not become aware of any observable price changes in our other investments accounted for under the fair value practicability exception discussed in Note 2 or any indicators of impairment. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
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 both December 31, 2019 and 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 lending platform and is fully tax deductible over 15 years. As discussed in Note 2, goodwill is tested for impairment at least annually. Based on our quantitative assessment during the fourth quarter of 2019, we determined that the fair value of the Infrastructure Lending Segment reporting unit to which goodwill is attributed exceeded its carrying value including goodwill. Therefore, we concluded that the goodwill attributed to the Infrastructure Lending Segment was not impaired. LNR Property LLC (“LNR”) The Investing and Servicing Segment’s goodwill of $140.4 million at both December 31, 2019 and 2018 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 this goodwill as of April 19, 2013 was Based on our qualitative assessment during the fourth quarter of 2019, 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. 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. As of December 31, 2019 and 2018, the balance of the domestic servicing intangible was net of $26.2 million and $24.1 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, 2019 and 2018, the domestic servicing intangible had a balance of $43.2 million and $44.6 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, 2019 and 2018 (amounts in thousands): As of December 31, 2019 As of December 31, 2018 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 16,917 $ — $ 16,917 $ 20,557 $ — $ 20,557 In-place lease intangible assets 135,293 (84,383) 50,910 198,220 (100,873) 97,347 Favorable lease intangible assets 24,218 (6,345) 17,873 36,895 (9,766) 27,129 Total net intangible assets $ 176,428 $ (90,728) $ 85,700 $ 255,672 $ (110,639) $ 145,033 The following table summarizes the activity within intangible assets for the years ended December 31, 2019 and 2018 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2018 $ 30,759 $ 122,465 $ 29,868 $ 183,092 Acquisition of 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 Sale of Ireland Portfolio — (20,271) (5,654) (25,925) Sale of certain REIS Equity Portfolio properties — (5,208) (13) (5,221) Acquisition of additional REIS Equity Portfolio property — 277 — 277 Amortization — (19,297) (3,256) (22,553) Foreign exchange loss — (806) (221) (1,027) Impairment (1) — (1,132) (112) (1,244) Changes in fair value due to changes in inputs and assumptions (3,640) — — (3,640) Balance as of December 31, 2019 $ 16,917 $ 50,910 $ 17,873 $ 85,700 (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): 2020 $ 11,699 2021 9,674 2022 7,892 2023 6,136 2024 4,742 Thereafter 28,640 Total $ 68,783 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 $2.3 million and $2.9 million as of December 31, 2019 and 2018, 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 1.5 years of the underlying lease term at a rate of approximately $1.9 million per year. The liability balance was $2.8 million and $4.7 million as of December 31, 2019 and 2018, respectively. |
Secured Borrowings
Secured Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Secured financing agreements | |
Secured Financing Agreements | |
Secured Borrowings | 10. Secured Borrowings Secured Financing Agreements The following table is a summary of our secured financing agreements in place as of December 31, 2019 and 2018 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum December 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2019 2018 Repurchase Agreements: Commercial Loans Aug 2020 to Jan 2024 (b) Aug 2021 to Apr 2028 (b) (c) $ 5,327,761 $ 9,066,480 (d) $ 3,640,620 $ 3,598,311 Residential Loans Feb 2021 N/A LIBOR + 2.10% 14,704 400,000 11,835 — Infrastructure Loans Feb 2020 Feb 2021 LIBOR + 1.75% 227,463 500,000 188,198 — Conduit Loans Feb 2020 to Jun 2022 Feb 2021 to Jun 2023 LIBOR + 2.10% 109,864 350,000 86,575 35,034 CMBS/RMBS Sep 2020 to Dec 2029 (e) Dec 2020 to June 2030 (e) (f) 1,005,348 837,566 682,229 656,405 Total Repurchase Agreements 6,685,140 11,154,046 4,609,457 4,289,750 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 542,281 650,000 (g) 198,955 — Infrastructure Acquisition Facility Sep 2021 Sep 2022 (h) 754,443 771,534 603,642 1,551,148 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.12% 524,197 1,000,000 428,206 — Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (i) N/A 3.94% 1,499,356 1,196,698 1,196,492 1,475,382 Property Mortgages - Variable rate May 2020 to Jun 2026 N/A LIBOR + 2.49% 783,460 714,810 696,503 645,344 Term Loan and Revolver (j) N/A (j) N/A (j) 519,000 399,000 300,000 FHLB Feb 2021 N/A (k) 1,262,250 2,000,000 867,870 500,000 Total Other Secured Financing 5,365,987 6,852,042 4,390,668 4,471,874 $ 12,051,127 $ 18,006,088 9,000,125 8,761,624 Unamortized net discount (8,347) (963) Unamortized deferred financing costs (85,730) (77,096) $ 8,906,048 $ 8,683,565 (a) Subject to certain conditions as defined in the respective facility agreement. (b) For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (c) Certain facilities with an outstanding balance of $874.9 million as of December 31, 2019 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 1.90% . (d) The aggregate initial maximum facility size of $8.9 billion may be increased at our option, subject to certain conditions. This amount includes such upsizes. (e) Certain facilities with an outstanding balance of $295.0 million as of December 31, 2019 carry a rolling 11-month or 12-month term which may reset monthly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $184.7 million as of December 31, 2019 has a fixed annual interest rate of 3.49% . All other facilities are variable rate with a weighted average rate of LIBOR + 1.58% . (g) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (h) Consists of 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, which was entered into in September 2018. (i) The weighted average maturity is 9.8 years as of December 31, 2019. (j) Consists of: (i) a $399.0 million term loan facility that matures in July 2026 with an annual interest rate of LIBOR + 2.50% ; and (ii) a $120.0 million revolving credit facility that matures in July 2024 with an annual interest rate of LIBOR + 3.00% . These facilities are secured by the equity interests in certain of our subsidiaries which totaled $3.1 billion as of December 31, 2019. (k) FHLB financing with an outstanding balance of $438.5 million as of December 31, 2019 has a weighted average fixed annual interest rate of 2.01% . The remainder is variable rate with a weighted average rate of LIBOR + 0.28% . In February 2019, we entered into a $500.0 million Infrastructure Loans repurchase facility. The facility carries a one-year initial term with a one-year extension option and an annual interest rate of LIBOR + 1.75%. In February 2019, we amended a Residential Loans repurchase facility to increase available borrowings by $200.0 million and extend the current maturity from June 2019 to February 2021. In March 2019, we amended the FHLB facility to increase available borrowings from $500.0 million to $2.0 billion, subject to scheduled reductions to available capacity from September 2020 through maturity in February 2021. In April 2019, we amended the Borrowing Base Facility to extend the current maturity from February 2021 to April 2022 with two one-year extension options. In July 2019, we entered into the following credit agreements: (i) a $400.0 million term loan facility that carries a seven-year term and an annual interest rate of LIBOR + 2.50%; and (ii) a $100.0 million revolving credit facility that carries a five-year term and an annual interest rate of LIBOR + 3.00%. A portion of the net proceeds from the term loan was used to repay the amount outstanding under our previous term loan. We recognized a loss on extinguishment of debt of $1.5 million in our consolidated statement of operations in connection with the repayment of our previous term loan. In December 2019, the revolving credit facility was amended to increase available borrowings from In July 2019, we entered into a $500.0 million Infrastructure Financing Facility to finance loans within the Infrastructure Lending Segment. The facility carries a of which is at our discretion. The facility also carries a term-match to the respective collateral for an additional life of the facility. The facility has an annual interest rate between In October 2019, we entered into a $500.0 million Infrastructure Financing Facility to finance loans within the Infrastructure Lending Segment. The facility carries a In October 2019, we entered into a $600.0 million first mortgage and mezzanine loan to refinance our existing Medical Office Portfolio debt of $494.3 million. The facility carries a two-year term with three one-year extension options and a weighted average floating rate of interest of LIBOR + 2.07% . Using proceeds from the unwind of our hedge on the existing debt, we swapped the interest to a fixed rate of . We recognized loss on extinguishment of debt of In November 2019, we entered into mortgage loans with total borrowings of $84.5 million to finance our Woodstar I Portfolio. The loans carry . A portion of the net proceeds from the mortgage loans was used to repay million of outstanding government sponsored mortgage loans. In December 2019, we amended a CMBS/RMBS repurchase facility to increase available borrowings from $150.0 million to $300.0 million. During the year ended December 31, 2019, we entered into and amended several Commercial Loans repurchase facilities resulting in an aggregate upsize of $2.8 billion. Our secured financing agreements contain certain financial tests and covenants. As of December 31, 2019, we were in compliance with all such covenants. 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 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 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 agreement. For the years ended December 31, 2019, 2018 and 2017, approximately $34.3 million, $27.0 million and $19.5 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our consolidated statements of operations. Collateralized Loan Obligations In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion principal amount of notes, of which $936.4 million was purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the year ended December 31, 2019, we utilized the reinvestment feature, contributing $88.4 million of additional interests into the CLO. The following table is a summary of our CLO as of December 31, 2019 (amounts in thousands): Face Carrying Weighted Count Amount Value Average Spread Maturity Collateral assets 20 $ 1,073,504 $ 1,073,504 LIBOR + 3.34% (a) Nov 2023 (b) Financing 1 936,375 928,060 LIBOR + 1.65% (c) July 2038 (d) (a) Represents the weighted-average coupon earned on variable rate loans during the year ended December 31, 2019. Of the loans financed by the CLO, 9% earned fixed weighted average interest of 6.84% . (b) Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets. (c) Represents the weighted-average cost of financing incurred during the year ended December 31, 2019, inclusive of deferred issuance costs. (d) Repayments of the CLO are tied to timing of the related collateral asset repayments. The term of the CLO financing obligation represents the legal final maturity date. We incurred $9.2 million of issuance costs in connection with the CLO, which are amortized on an effective yield basis over the estimated life of the CLO. As of December 31, 2019, our unamortized issuance costs were $8.3 million. The CLO is considered a VIE, for which we are deemed the primary beneficiary. We therefore consolidate the CLO. Refer to Note 15 for further discussion. Maturities 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 following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands): Repurchase Other Secured Agreements Financing CLO Total 2020 $ 480,249 $ 564,886 $ — $ 1,045,135 2021 625,956 857,429 — 1,483,385 2022 1,010,970 552,175 — 1,563,145 2023 1,056,812 705,283 — 1,762,095 2024 1,065,312 284,235 — 1,349,547 Thereafter 370,158 1,426,660 936,375 (a) 2,733,193 Total $ 4,609,457 $ 4,390,668 $ 936,375 $ 9,936,500 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes
Unsecured Senior Notes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2019 2018 2019 Convertible Notes N/A N/A N/A N/A $ — $ 77,969 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 1.1 years 500,000 500,000 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 2.0 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 3.3 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 5.2 years 500,000 500,000 Total principal amount 1,950,000 2,027,969 Unamortized discount—Convertible Notes (3,610) (4,644) Unamortized discount—Senior Notes (12,144) (16,416) Unamortized deferred financing costs (5,624) (8,078) Carrying amount of debt components $ 1,928,622 $ 1,998,831 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes $ 3,755 $ 3,755 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our Convertible 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 Senior Notes Due December 2021 % 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 % 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. The 2025 Notes were swapped to floating rate (see Note 13). Convertible 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. During the year ended December 31, 2019, we settled the remaining $78.0 million principal amount of the 2019 Notes through the issuance of 3.6 million shares of common stock and cash payments of $12.0 million. During the year ended December 31, 2018, we received and settled redemption notices related to the 2019 Notes with a par amount totaling 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. We recognized interest expense of $12.3 million, $28.9 million and $72.2 million during the years ended December 31, 2019, 2018 and 2017, respectively, from our Convertible Notes. The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2019 (amounts in thousands, except rates): December 31, 2019 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2019 2018 2017 2018 Notes N/A N/A — — 541 2019 Notes N/A N/A — 91 1,358 2023 Notes 38.5959 $ 25.91 — — — — 91 1,899 (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, 2019, 2018 and 2017, the market price of the Company’s common stock was $24.86, $19.71 and $21.35 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 2023 Notes was less than their principal amount by $10.1 million at December 31, 2019 as the closing market price of the Company’s common stock of $24.86 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 2023 Notes was $239.9 million as of December 31, 2019. 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. |
Loan Securitization_Sale Activi
Loan Securitization/Sale Activities | 12 Months Ended |
Dec. 31, 2019 | |
Loan Securitization/Sale Activities | |
Loan Securitization/Sale Activities | 12. Loan Securitization/Sale Activitie s 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 circumstances, 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, 2019, 2018 and 2017 (amounts in thousands): Repayment of repurchase Face Amount Proceeds agreements For the Year Ended December 31, 2019 $ 1,781,981 $ 1,845,890 $ 1,289,129 2018 1,517,599 1,563,433 1,147,316 2017 1,517,368 1,582,050 1,152,938 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 circumstances, 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, 2019, we sold residential loans into securitization VIEs into which our commercial loans were sold. In each of these instances, we retained interests in the VIEs. 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 2019 $ 751,210 $ 748,045 $ 1,282,527 $ 1,331,856 $ — $ — 2018 840,400 835,849 660,865 683,556 — — 2017 55,470 52,609 — — 75,000 74,098 During the years ended December 31, 2019 and 2018, we recognized a $6.9 million and $1.3 million, respectively, change in fair value of mortgage loans held-for-sale, net in our consolidated statements of operations in connection with residential mortgage loan securitizations. During the year ended December 31, 2019, gains recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $4.6 million. During the years ended December 31, 2018 and 2017, 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. Infrastructure Loan Sales During the year ended December 31, 2019, the Infrastructure Lending Segment sold loans held-for-sale with an aggregate face amount of $404.1 million for proceeds of $393.3 million, recognizing a gain of $3.1 million. In connection with these sales, we sold an interest rate swap guarantee for cash payment of $3.1 million and recognized a decrease in fair value of $2.7 million within (loss) gain on derivative financial instruments, net in our consolidated statement of operations during the year ended December 31, 2019. Refer to Note 13 for further discussion of our interest rate swap guarantees. There were no sales of loans by the Infrastructure Lending Segment during the year ended December 31, 2018. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives and Hedging Activity | |
Derivatives and Hedging Activity | 13. Derivatives and Hedging Activit y 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, 2019 and 2018, the Company did not have any designated hedges. Additionally, during the years ended December 31, 2019, 2018 and 2017 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; 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, 2019 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") 168 199,183 EUR January 2020 – June 2023 Fx contracts – Sell Pounds Sterling ("GBP") 93 444,236 GBP January 2020 – December 2023 Fx contracts – Sell Australian dollar ("AUD") 4 25,850 AUD March 2020 – November 2021 Interest rate swaps – Paying fixed rates 37 1,299,466 USD July 2022 – January 2030 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021- March 2025 Interest rate caps 12 742,299 USD January 2020 – August 2023 Credit index instruments 5 89,000 USD November 2054 – August 2061 Interest rate swap guarantees 6 394,671 USD March 2022 – June 2025 Interest rate swap guarantees 1 9,390 GBP December 2024 Total 328 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, 2019 and 2018 (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, 2019 2018 2019 2018 Interest rate contracts 14,385 30,791 — 14,457 Interest rate swap guarantees — — 614 396 Foreign exchange contracts 14,558 21,346 7,834 562 Credit index instruments — 554 292 — Total derivatives $ 28,943 $ 52,691 $ 8,740 $ 15,415 (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, 2019, 2018 and 2017 (amounts in thousands): a 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 2019 2018 2017 Interest rate contracts (Loss) gain on derivative financial instruments $ (10,516) $ (1,593) $ (5,165) Interest rate swap guarantees (Loss) gain on derivative financial instruments (3,350) (114) — Foreign exchange contracts (Loss) gain on derivative financial instruments 8,801 36,040 (65,645) Credit index instruments (Loss) gain on derivative financial instruments (1,245) 270 (1,722) $ (6,310) $ 34,603 $ (72,532) Gain Gain Reclassified Recognized from AOCI Gain Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain For the Year Ended December 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2019 $ — $ — $ — Interest expense 2018 $ 8 $ 33 $ — Interest expense 2017 $ 54 $ 3 $ — Interest expense |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting Assets and Liabilities | |
Offsetting Assets and Liabilities | 14. Offsetting Assets and Liabilitie s 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 (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, 2019 Derivative assets $ 28,943 $ — $ 28,943 $ 5,312 $ 14,208 $ 9,423 Derivative liabilities $ 8,740 $ — $ 8,740 $ 5,312 $ 292 $ 3,136 Repurchase agreements 4,609,457 — 4,609,457 4,609,457 — — $ 4,618,197 $ — $ 4,618,197 $ 4,614,769 $ 292 $ 3,136 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 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Variable Interest Entities | 15. Variable Interest Entitie s 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. During the year ended December 31, 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, which is considered to be a VIE. We are the primary beneficiary of, and therefore consolidate, the CLO in our financial statements as we have both (i) the power to direct the activities in our role as collateral manager that most significantly impact the CLO’s economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the CLO that could be potentially significant through the subordinate interests we own. The following table details the assets and liabilities of our consolidated CLO (amounts in thousands): As of December 31, 2019 Assets: Loans held-for-investment $ 1,073,504 Accrued interest receivable 3,129 Other assets 26,496 Total Assets $ 1,103,129 Liabilities Accounts payable, accrued expenses and other liabilities $ 1,362 Collateralized loan obligations, net 928,060 Total Liabilities $ 929,422 Assets held by this CLO are restricted and can be used only to settle obligations of the CLO, including the subordinate interests owned by us. The liabilities of this CLO are non-recourse to us and can only be satisfied from the assets of the CLO. We also hold controlling interests in other non-securitization entities that are considered VIEs. 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 total assets of $684.1 million and liabilities of $444.4 million as of December 31, 2019. In December 2019, we entered into a newly-formed joint venture (the “CMBS JV”) within our Investing and Servicing Segment, which is considered a VIE because the third party interest holder does not carry kick-out rights or substantive participating rights. We hold a 51 % ownership interest and are deemed the primary beneficiary of the CMBS JV. This VIE had total assets of $347.2 million and liabilities of $0.4 million as of December 31, 2019. Refer to Note 17 for further discussion. In total, our other consolidated non-securitization VIEs had total assets of $1.1 billion and liabilities of $491.8 million as of December 31, 2019. 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, 2019, four of our collateralized debt obligation (“CDO”) structures within our Investing and Servicing Segment 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, 2019, 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, 2019, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $37.4 million on a fair value basis. As of December 31, 2019, 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 $6.1 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 $21.2 million as of December 31, 2019, 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, 2019 | |
Related-Party Transactions | |
Related-Party Transactions | 16. Related-Party Transaction s 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 For the years ended December 31, 2019, 2018 and 2017, approximately $77.0 million, $73.2 million and $67.8 million, respectively, was incurred for base management fees. As of December 31, 2019 and 2018, there were $19.3 million and $19.2 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 three One 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, 2019, 2018 and 2017, approximately $20.2 million, $41.4 million and $42.1 million, respectively, was incurred for incentive fees. As of December 31, 2019 and 2018, there were $18.1 million and $21.8 million, respectively, of unpaid incentive fees 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, 2019, 2018 and 2017, approximately $7.7 million, $7.7 million and $6.4 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, 2019 and 2018, there were $3.5 million and $3.0 million, respectively, of unpaid reimbursable executive compensation and other expenses 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, 2019, 2018 and 2017, we granted Payments to Manager Employees. 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 September 2019, we granted RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted recognized share-based compensation expense of $20.2 million, $12.6 million and $10.4 million within management fees in our consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017, respectively. Refer to Note 17 for further discussion of these grants. Investments in Loans and Securities In November 2019, the Company and SEREF, an affiliate of our Manager, each originated €39.0 million of a €192.0 million first mortgage and subordinated loan. The loan was to a third party borrower for the acquisition of an office portfolio located in Spain. The loan matures in November 2023. In December 2019, we sold the first mortgage of million. In September 2019, the Company co-originated a €73.6 million first mortgage loan with SEREF, an affiliate of our Manager. The loan was to a third party borrower for the development of a Grade A office building and convention center in Dublin, Ireland. The Company originated €58.9 million of the loan and SEREF originated €14.7 million. The loan matures in May 2022. In February 2019, the Company acquired a $60.0 million participation in a $1.0 billion f irst priority infrastructure term loan. In April 2019 and July 2019, the Company acquired participations of domestic natural gas power plants. An affiliate of our Manager, Starwood Energy Group, is the borrower under the term loan. In March 2019, the Company originated a $22.5 million loan to refinance the debt of a commercial real estate partnership in which we hold a 50% equity interest. During the years ended December 31, 2019 and 2018, the Company acquired $353.0 million and $135.6 million, respectively, of loans from a residential mortgage originator in which it holds an equity interest. Also in September 2019 and October 2019, the Company amended a $2.0 million subordinated loan to this residential mortgage originator, which was entered into in June 2018, to extend the maturity from September 2019 to September 2020 and increase the total commitment to $4.5 million. Refer to Note 8 for further discussion. 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. 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. The loan matures in March 2023. 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. 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 February 2020. 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 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 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, 2019, our shares represent an approximate 2% interest in SEREF. Refer to Note 6 for additional details. 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, 2019, 2018 and 2017, we recognized a loss of $114.4 million, earnings of $3.7 million and a loss of $27.7 million, respectively, and received distributions of $2.1 million during the year ended December 31, 2017. During the period included in our year ended December 31, 2019, the Retail Fund reported unrealized decreases in the fair value of its real estate properties, which resulted in a million decrease to our investment. In addition, we provided an impairment charge of million against the remainder of the investment based on our estimate of the fair value of the underlying retail assets as of December 31, 2019. Refer to Note 8 for further detail. 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 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, 2019, 2018 and 2017, we acquired million, respectively. Refer to Note 3 for further discussion of these acquisitions. 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 equity interest in certain REIS Equity Portfolio properties acquired subsequent to January 1, 2015. As of December 31, 2019, Fund Participants have funded 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 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, 2019, 2018 and 2017, the non-controlling interests related to this fund received cash distributions of During the years ended December 31, 2019 and 2018, we engaged Highmark Residential (“Highmark”) (formerly known as Milestone Management), an affiliate of our Manager, to provide property management services for 11 and ten properties within our Woodstar I Portfolio, respectively, bringing the total number of our properties managed by Highmark to 21. Fees paid to Highmark are calculated as a percentage of gross receipts and are at market terms. During the years ended December 31, 2019 and 2018, property management fees paid to Highmark were $1.6 million and $0.1 million, respectively. |
Stockholders' Equity and Non-Co
Stockholders' Equity and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Non-Controlling Interests | |
Stockholders' Equity and Non-Controlling Interests | 17. Stockholders’ Equit y and Non-Controlling Interests 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. 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, 2019, 2018 and 2017, 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, 2019, 2018 and 2017, 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 were 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 were discretionary and subject to economic and market conditions, stock price, applicable legal requirements and other factors. There were Convertible Note or common stock repurchases under the repurchase program during the years ended December 31, 2019 and 2017. During the year ended December 31, 2018, we repurchased During the years ended December 31, 2019 and 2018, we issued 3.6 million shares and 12.4 million shares, respectively, in connection with the settlement of $78.0 million and $263.4 million, respectively, of our 2019 Notes. Refer to Note 11 for further discussion. Our board of directors declared the following dividends during the years ended December 31 2019, 2018 and 2017: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 11/8/19 12/31/19 12/30/19 1/15/20 $ 0.48 Quarterly 8/7/19 9/30/19 9/27/19 10/15/19 0.48 Quarterly 5/8/19 6/28/19 6/27/19 7/15/19 0.48 Quarterly 2/28/19 3/29/19 3/28/19 4/15/19 0.48 Quarterly 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 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, 2019, 7,498,820 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, 2019, 2018 and 2017 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period September 2019 RSU 1,200,000 $ 29,484 (1) 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 (1) Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period. During the years ended December 31, 2019, 2018 and 2017, we granted 520,236, 851,170 and 742,516 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. 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 under the Equity Plan and the 2017 Equity Plan during the years ended December 31, 2019, 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, 2019, 2018 and 2017: Timing of Issuance Shares of Common Stock Issued Price per share November 2019 38,942 $ 24.08 March 2019 495,363 22.16 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 The following table summarizes our share-based compensation expenses during the years ended December 31, 2019, 2018 and 2017 (in thousands): For the year ended December 31, 2019 2018 2017 Management fees: Manager incentive fee $ 10,082 $ 20,700 $ 21,072 2017 Manager Equity Plan (1) 20,255 12,573 10,423 30,337 33,273 31,495 General and administrative: 2017 Equity Plan (1) 15,900 10,185 7,728 15,900 10,185 7,728 Total share-based compensation expense (2) $ 46,237 $ 43,458 $ 39,223 (1) (2) 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, 2019 1,436,445 997,920 2,434,365 $ 21.52 Granted 520,236 1,200,000 1,720,236 24.01 Vested (518,298) (892,323) (1,410,621) 22.20 Forfeited (25,213) — (25,213) 21.84 Balance as of December 31, 2019 1,413,170 1,305,597 2,718,767 22.74 (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, 2019, 2018 and 2017 was $24.01, $21.20 and $22.20, respectively. Vesting Schedule 2017 Equity 2017 Manager Plan Equity Plan Total 2020 799,039 668,701 1,467,740 2021 440,173 391,619 831,792 2022 173,958 245,277 419,235 Total 1,413,170 1,305,597 2,718,767 As of December 31, 2019, there was approximately $49.3 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, 2019, 2018 and 2017 were $33.2 million, $18.3 million and $18.3 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. During the years ended December 31, 2019 and 2018, we issued 0.1 million and 1.7 million, respectively, 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. During the year ended December 31, 2019, redemptions of Class A Units were redeemed during the year ended December 31, 2018. In consolidation, the outstanding Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our consolidated balance sheets, the balance of which was $235.9 million and $254.9 million as of December 31, 2019 and 2018, respectively. 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 years ended December 31, 2019 and 2018, we recognized net income attributable to non-controlling interests of As discussed in Note 15, we entered into the CMBS JV within our Investing and Servicing Segment in December 2019. In connection with the formation of this venture, we sold assets totaling million of related interest receivables. We obtained a million of joint venture interests that we contributed into the CMBS JV relate to joint ventures which we consolidate. The CMBS within these ventures carried a fair value of Because the CMBS JV was deemed a VIE for which we were the primary beneficiary (see Note 15), this transaction was not recognized as a sale for GAAP purposes. Instead, the 49% interest of our joint venture partner is reflected as a non-controlling interest in consolidated subsidiaries on our consolidated balance sheet, and any net income attributable to this 49% joint venture interest will be reflected within net income attributable to non-controlling interests in our consolidated statement of operations. The non-controlling interests in CMBS JV was million as of December 31, 2019. During the year ended December 31, 2019, net income attributable to non-controlling interests was immaterial. 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, 2019 | |
Earnings per Share | |
Earnings per Share | 18. Earnings per Shar e For the Year Ended December 31, 2019 2018 2017 Basic Earnings Income attributable to STWD common stockholders $ 509,664 $ 385,830 $ 400,770 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,873) (3,592) (3,183) Basic earnings $ 505,791 $ 382,238 $ 397,587 Diluted Earnings Income attributable to STWD common stockholders $ 509,664 $ 385,830 $ 400,770 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,873) (3,592) (3,183) Add: Interest expense on Convertible Notes (1) 12,354 25,148 — Add: Loss on extinguishment of Convertible Notes (1) — 2,099 — Diluted earnings $ 518,145 $ 409,485 $ 397,587 Number of Shares: Basic — Average shares outstanding 279,337 265,279 259,620 Effect of dilutive securities — Convertible Notes (1) 9,805 22,659 1,899 Effect of dilutive securities — Contingently issuable shares 360 546 508 Effect of dilutive securities — Unvested non-participating shares 210 — 52 Diluted — Average shares outstanding 289,712 288,484 262,079 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.81 $ 1.44 $ 1.53 Diluted $ 1.79 $ 1.42 $ 1.52 (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 was previously 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 years ended December 31, 2019 and 2018 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, 2019, 2018 and 2017, participating shares of 13.3 million, 13.8 million and 4.2 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, 2019 and 2018 include 11.0 million and 11.9 million potential shares, respectively, 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, 2019 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 19. Accumulated Other Comprehensive Incom e 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, 2017 $ (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 OCI before reclassifications — (2,460) (3,665) (6,125) Amounts reclassified from AOCI — (59) (1,544) (1,603) Net period OCI — (2,519) (5,209) (7,728) Balance at December 31, 2019 $ — $ 50,996 $ (64) $ 50,932 The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2019, 2018 and 2017 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 2019 2018 2017 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ — $ 33 $ 3 Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection 59 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 59 2,984 95 Foreign currency translation: Foreign currency gain from sale of Ireland Portfolio 1,544 — — Gain on sale of investments and other assets, net Total reclassifications for the period $ 1,603 $ 3,017 $ 98 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value | |
Fair Value | 20. Fair Valu e 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 Level II Level III 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 Unobservable Inputs Fair Value on a Recurring Basis Loans held-for-sale, commercial 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 and loans held-for-investment, residential We measure the fair value of our residential mortgage loans held-for-sale and held-for-investment 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 CMBS Equity security Domestic servicing rights Derivatives 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, 2019 and 2018, 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 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 Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels. For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. 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 Fair Value on a Nonrecurring Basis We determine the fair value of our financial assets and liabilities measured at fair value on a nonrecurring basis as follows: Loans held-for-sale, infrastructure We measure the fair value of infrastructure loans held-for-sale, which are carried at the lower of amortized cost or fair value, utilizing bids periodically 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 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 and infrastructure bonds 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, CLO, unsecured senior notes not convertible and secured borrowings on transferred loans The fair value of the secured financing agreements, CLO, 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, 2019 and 2018 (amounts in thousands): December 31, 2019 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 1,436,194 $ — $ — $ 1,436,194 RMBS 189,576 — — 189,576 CMBS 37,360 — 12,352 25,008 Equity security 12,664 12,664 — — Domestic servicing rights 16,917 — — 16,917 Derivative assets 28,943 — 28,943 — VIE assets 62,187,175 — 62,187,175 Total $ 63,908,829 $ 12,664 $ 41,295 $ 63,854,870 Financial Liabilities: Derivative liabilities $ 8,740 $ — $ 8,740 $ — VIE liabilities 60,743,494 — 58,206,102 2,537,392 Total $ 60,752,234 $ — $ 58,214,842 $ 2,537,392 December 31, 2018 Total Level I Level II Level III Financial Assets: Loans under 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 The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2019 and 2018 (amounts in thousands): Domestic Loans at Servicing VIE Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2018 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 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 71,337 — 505 (3,640) (1,250,935) 47,308 (1,135,425) OTTI — — — — — — — Net accretion — 9,945 — — — — 9,945 Included in OCI — (2,519) — — — — (2,519) Purchases / Originations 4,015,167 — 5,165 — — — 4,020,332 Sales (2,951,713) — (7,326) — — — (2,959,039) Issuances — — — — — (116,273) (116,273) Cash repayments / receipts (144,066) (26,929) (11,348) — — (16,093) (198,436) Transfers into Level III — — 5,350 — — (1,728,562) (1,723,212) Transfers out of Level III (225,813) — — — — 991,378 765,565 Consolidation of VIEs — — — — 10,368,817 (311,748) 10,057,069 Deconsolidation of VIEs — — 7,434 — (377,071) 38,044 (331,593) December 31, 2019 balance $ 1,436,194 $ 189,576 $ 25,008 $ 16,917 $ 62,187,175 $ (2,537,392) $ 61,317,478 Amount of total (losses) gains included in earnings attributable to assets still held at: December 31, 2018 $ (3,753) 10,398 (352) (10,202) (5,835,225) 1,022,887 $ (4,816,247) December 31, 2019 (4,459) 9,858 (666) (3,640) (1,250,935) 47,308 (1,202,534) 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, 2019 December 31, 2018 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 $ 10,034,030 $ 10,086,372 $ 9,122,972 $ 9,178,709 HTM debt securities 570,638 568,727 644,149 643,948 Financial liabilities not carried at fair value: Secured financing agreements, CLO and secured borrowings on transferred loans $ 9,834,108 $ 9,826,511 $ 8,757,804 $ 8,662,548 Unsecured senior notes 1,928,622 2,022,283 1,998,831 1,945,160 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, 2019 Technique Input December 31, 2019 December 31, 2018 Loans under fair value option $ 1,436,194 Discounted cash flow Yield (b) 3.4% - 5.9% 4.6% - 6.1% Duration (c) 1.3 - 11.3 years 2.5 - 14.4 years RMBS 189,576 Discounted cash flow Constant prepayment rate (a) 3.1% - 24.9% 3.2% - 25.2% Constant default rate (b) 0.5% - 5.0% 1.1% - 5.5% Loss severity (b) 0% - 93% (e) 0% - 73% (e) Delinquency rate (c) 5% - 29% 4% - 31% Servicer advances (a) 27% - 85% 21% - 83% Annual coupon deterioration (b) 0% - 1.6% 0% - 1.4% Putback amount per projected total collateral loss (d) 0% - 28% 0% - 7% CMBS 25,008 Discounted cash flow Yield (b) 0% - 122.9% 0% - 473.5% Duration (c) 0 - 9.7 years 0 - 9.7 years Domestic servicing rights 16,917 Discounted cash flow Debt yield (a) 7.5% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 62,187,175 Discounted cash flow Yield (b) 0% - 690.7% 0% - 290.9% Duration (c) 0 - 19.2 years 0 - 20.4 years VIE liabilities (2,537,392) Discounted cash flow Yield (b) 0% - 690.7% 0% - 290.9% Duration (c) 0 - 12.7 years 0 - 13.7 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) 34% and 55% of the portfolio falls within a range of 45% - 80% as of December 31, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | 21. Income Taxe s 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, 2019 and 2018, approximately $1.6 billion and $553.5 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, 2019, 2018 and 2017 (in thousands): For the year ended December 31, 2019 2018 2017 Current Federal $ 4,917 $ 10,508 $ 17,495 State 3,182 3,010 3,115 Foreign 977 293 8 Total current 9,076 13,811 20,618 Deferred Federal 3,869 1,189 10,815 State 287 330 89 Total deferred 4,156 1,519 10,904 Total income tax provision $ 13,232 $ 15,330 $ 31,522 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, 2019 2018 Deferred tax asset, net Reserves and accruals $ 4,017 $ 5,161 Domestic intangible assets 8,185 14,022 Lease assets (1,950) — Lease liabilities 2,752 — Investment in unconsolidated entities (116) (1,842) Deferred income 19 134 Net operating and capital loss carryforwards 885 — Other U.S. temporary differences 228 702 Net deferred tax assets $ 14,020 $ 18,177 Unrecognized tax benefits were not material as of and during the years ended December 31, 2019 and 2018. The Company’s tax returns are no longer subject to audit for years ended prior to January 1, 2016. The Company had pre-tax income from foreign operations of $0.9 million and $1.4 million during the years ended December 31, 2019 and 2018, 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, 2019, 2018 and 2017 (dollars in thousands): For the Year Ended December 31, 2019 2018 2017 Federal statutory tax rate $ 115,535 21.0 % $ 89,571 21.0 % $ 155,501 35.0 % REIT and other non-taxable income (106,301) (19.3) % (77,972) (18.3) % (135,830) (30.6) % State income taxes 3,034 0.5 % 3,038 0.7 % 3,091 0.7 % Federal benefit of state tax deduction (637) (0.1) % (638) (0.1) % (1,082) (0.2) % Changes in tax law — — % — — % 10,365 2.3 % Other 1,601 0.3 % 1,331 0.3 % (523) (0.1) % Effective tax rate $ 13,232 2.4 % $ 15,330 3.6 % $ 31,522 7.1 % 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. There were no valuation allowances during the years ended December 31, 2019 and 2018. During the year ended December 31, 2017, $5.5 million of a valuation allowance associated with our deferred tax assets was released to the income tax provision. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 22. Commitments and Contingencie s As of December 31, 2019, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $3.2 billion, of which we expect to fund $2.9 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. As of December 31, 2019, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $360.6 million, including $145.1 million under revolvers and letters of credit (“LCs”), and $215.5 million under delayed draw term loans. As of December 31, 2019, 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, 2019, we had seven outstanding guarantees on interest rate swaps maturing between March 2022 and June 2025. 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. 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. Lease Commitment Disclosures Our lease commitments consist of corporate office leases and ground leases for investment properties, all of which are classified as operating leases. We sublease some of the space within our corporate offices to third parties. Our lease costs and sublease income were as follows (in thousands): For the Year Ended December 31, 2019 2018 2017 Operating lease costs $ 5,634 $ 4,962 $ 4,699 Short-term lease costs 115 210 96 Sublease income (1,613) (1,643) (1,500) Total lease cost $ 4,136 $ 3,529 $ 3,295 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheet as of December 31, 2019, is as follows (dollars in thousands): For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities—operating $ 5,215 December 31, 2019 Weighted-average remaining lease term 6.0 years Weighted-average discount rate 4.4 % Future maturity of operating lease liabilities: 2020 $ 6,163 2021 3,480 2022 1,272 2023 1,281 2024 6,206 Thereafter 1,002 Total 19,404 Less interest component (2,316) Operating lease liability $ 17,088 |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Data and Geographic Data | |
Segment and Geographic Data | 23. Segment and Geographic Dat a 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. The table below presents our results of operations for the year ended December 31, 2019 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 $ 610,316 $ 99,580 $ — $ 14,117 $ — $ 724,013 $ — $ 724,013 Interest income from investment securities 81,255 6,318 — 117,663 — 205,236 (128,607) 76,629 Servicing fees 423 — — 69,962 — 70,385 (16,089) 54,296 Rental income — — 287,094 50,872 — 337,966 — 337,966 Other revenues 1,038 751 409 1,317 26 3,541 (26) 3,515 Total revenues 693,032 106,649 287,503 253,931 26 1,341,141 (144,722) 1,196,419 Costs and expenses: Management fees 1,495 — — 72 117,404 118,971 161 119,132 Interest expense 222,118 62,836 76,838 33,621 113,964 509,377 (648) 508,729 General and administrative 29,481 18,260 6,232 87,115 13,681 154,769 343 155,112 Acquisition and investment pursuit costs 1,351 75 217 (587) — 1,056 — 1,056 Costs of rental operations 2,691 — 95,370 24,921 — 122,982 — 122,982 Depreciation and amortization 1,091 83 92,561 19,587 — 113,322 — 113,322 Loan loss provision, net 2,616 4,510 — — — 7,126 — 7,126 Other expense 307 — 1,693 365 — 2,365 — 2,365 Total costs and expenses 261,150 85,764 272,911 165,094 245,049 1,029,968 (144) 1,029,824 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 236,309 236,309 Change in fair value of servicing rights — — — (1,468) — (1,468) (2,172) (3,640) Change in fair value of investment securities, net (1,084) — — 89,206 — 88,122 (87,289) 833 Change in fair value of mortgage loans held-for-sale, net 10,462 — — 61,139 — 71,601 — 71,601 Earnings (loss) from unconsolidated entities 10,649 — (114,362) 4,166 — (99,547) (1,807) (101,354) Gain on sale of investments and other assets, net 4,619 3,041 119,746 60,622 — 188,028 — 188,028 (Loss) gain on derivative financial instruments, net (20,325) (3,349) (1,284) (7,414) 26,062 (6,310) — (6,310) Foreign currency gain (loss), net 17,342 205 37 (2) — 17,582 — 17,582 Loss on extinguishment of debt (857) (11,357) (4,745) (845) (1,466) (19,270) — (19,270) Other (loss) income, net — (50) (100) 16 (73) (207) — (207) Total other income (loss) 20,806 (11,510) (708) 205,420 24,523 238,531 145,041 383,572 Income (loss) before income taxes 452,688 9,375 13,884 294,257 (220,500) 549,704 463 550,167 Income tax (provision) benefit (4,818) 89 (393) (8,110) — (13,232) — (13,232) Net income (loss) 447,870 9,464 13,491 286,147 (220,500) 536,472 463 536,935 Net income attributable to non-controlling interests (392) — (21,630) (4,786) — (26,808) (463) (27,271) Net income (loss) attributable to Starwood Property Trust, Inc . $ 447,478 $ 9,464 $ (8,139) $ 281,361 $ (220,500) $ 509,664 $ — $ 509,664 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 1,256,396 (147,116) 1,109,280 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 provision, 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 provision, 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 consolidated balance sheet as of December 31, 2019 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 $ 26,278 $ 2,209 $ 30,123 $ 61,693 $ 356,864 $ 477,167 $ 1,221 $ 478,388 Restricted cash 36,135 41,967 7,171 10,370 — 95,643 — 95,643 Loans held-for-investment, net 9,187,332 1,397,448 — 1,294 — 10,586,074 — 10,586,074 Loans held-for-sale 605,384 119,528 — 159,238 — 884,150 — 884,150 Investment securities 992,974 45,153 — 1,177,148 — 2,215,275 (1,405,037) 810,238 Properties, net 26,834 — 2,029,024 210,582 — 2,266,440 — 2,266,440 Intangible assets — — 47,303 64,644 — 111,947 (26,247) 85,700 Investment in unconsolidated entities 46,921 25,862 — 32,183 — 104,966 (20,637) 84,329 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 14,718 7 3 7 14,208 28,943 — 28,943 Accrued interest receivable 45,996 3,134 133 2,388 13,242 64,893 (806) 64,087 Other assets 59,170 6,101 82,910 54,238 8,911 211,330 (7) 211,323 VIE assets, at fair value — — — — — — 62,187,175 62,187,175 Total Assets $ 11,041,742 $ 1,760,818 $ 2,196,667 $ 1,914,222 $ 393,225 $ 17,306,674 $ 60,735,662 $ 78,042,336 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 30,594 $ 6,443 $ 48,370 $ 73,021 $ 53,494 $ 211,922 $ 84 $ 212,006 Related-party payable — — — 5 40,920 40,925 — 40,925 Dividends payable — — — — 137,427 137,427 — 137,427 Derivative liabilities 7,698 750 — 292 — 8,740 — 8,740 Secured financing agreements, net 5,038,876 1,217,066 1,698,334 574,507 391,215 8,919,998 (13,950) 8,906,048 Collateralized loan obligations, net 928,060 — — — — 928,060 — 928,060 Unsecured senior notes, net — — — — 1,928,622 1,928,622 — 1,928,622 VIE liabilities, at fair value — — — — — — 60,743,494 60,743,494 Total Liabilities 6,005,228 1,224,259 1,746,704 647,825 2,551,678 12,175,694 60,729,628 72,905,322 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,874 2,874 — 2,874 Additional paid-in capital 1,522,360 529,668 208,650 (123,210) 2,995,064 5,132,532 — 5,132,532 Treasury stock — — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 50,996 — — (64) — 50,932 — 50,932 Retained earnings (accumulated deficit) 3,463,158 6,891 5,431 1,194,998 (5,052,197) (381,719) — (381,719) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,036,514 536,559 214,081 1,071,724 (2,158,453) 4,700,425 — 4,700,425 Non-controlling interests in consolidated subsidiaries — — 235,882 194,673 — 430,555 6,034 436,589 Total Equity 5,036,514 536,559 449,963 1,266,397 (2,158,453) 5,130,980 6,034 5,137,014 Total Liabilities and Equity $ 11,041,742 $ 1,760,818 $ 2,196,667 $ 1,914,222 $ 393,225 $ 17,306,674 $ 60,735,662 $ 78,042,336 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 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 Revenues generated from foreign sources were $115.6 million, $90.5 million and $82.0 million for the years ended December 31, 2019, 2018 and 2017, respectively. The majority of our revenues generated from foreign sources are derived from the United Kingdom and Ireland. 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, 2019 | |
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 2019: Revenues $ 310,480 $ 311,181 $ 288,330 $ 286,428 Net income 76,508 132,446 150,001 177,980 Net income attributable to Starwood Property Trust, Inc. 70,383 127,016 140,396 171,869 Earnings per share — Basic 0.25 0.45 0.50 0.61 Earnings per share — Diluted 0.25 0.45 0.49 0.60 2018: Revenues $ 260,587 $ 269,556 $ 285,719 $ 293,418 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 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, 2019 | |
Subsequent Events | |
Subsequent Events | 25. Subsequent Event s Our significant events subsequent to December 31, 2019 were as follows: Residential Mortgage Loan Securitization In February 2020, we securitized residential mortgage loans held-for-sale with a principal balance of $381.3 million. Dividend Declaration On February 25, 2020, our board of directors declared a dividend of $0.48 per share for the first quarter of 2020, which is payable on April 15, 2020 to common stockholders of record as of March 31, 2020. |
Schedule III-Real Estate and Ac
Schedule III-Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 (Dollars in thousands) Initial Cost Costs Gross Amounts Carried at to Company Capitalized December 31, 2019 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 $ 929 $ — $ 6,494 $ 6,494 $ (1,807) Feb-18 Medical office—U.S., Midwest (7 properties) 78,048 2,764 97,802 503 2,764 98,305 101,069 (9,705) Dec-16 Medical office—U.S., North East (7 properties) 191,661 11,283 176,999 — 11,283 176,999 188,282 (16,437) Dec-16 Medical office—U.S., South East (6 properties) 107,252 7,930 117,740 159 7,930 117,899 125,829 (11,555) Dec-16 Medical office—U.S., South West (8 properties) 125,345 15,921 126,842 667 15,921 127,509 143,430 (13,493) Dec-16 Medical office—U.S., West (6 properties) 97,694 13,415 107,844 488 13,415 108,332 121,747 (12,243) Dec-16 Mixed Use—U.S., West (1 property) 8,667 1,002 14,323 246 1,002 14,569 15,571 (1,659) Feb-16 Multifamily—U.S., South East (60 properties) 930,351 251,084 926,809 31,202 251,113 957,982 1,209,095 (113,293) Oct-15 to Aug-19 Office—U.S., North East (1 property) 17,474 7,250 10,614 2,538 7,250 13,152 20,402 (1,505) May-18 Office—U.S., South East (2 properties) 23,809 7,081 31,528 3,503 7,081 35,031 42,112 (7,585) May-16 to Oct-16 Office—U.S., South West (2 properties) 28,334 8,188 28,019 2,252 8,188 30,271 38,459 (2,735) Sep-17 to Feb-18 Office—U.S., West (1 property) 15,448 — 4,261 5,592 — 9,853 9,853 (1,301) Oct-17 Retail—U.S., Mid Atlantic (1 property) 11,438 6,432 6,315 11,940 6,432 18,255 24,687 (1,985) Mar-16 Retail—U.S., Midwest (7 properties) 79,300 24,384 109,445 1,354 24,384 110,799 135,183 (9,573) Nov-15 to Sep-17 Retail—U.S., North East (1 property) 11,580 472 12,260 568 472 12,828 13,300 (1,877) Nov-15 Retail—U.S., South East (5 properties) 42,200 21,353 60,618 49 21,353 60,667 82,020 (4,352) Sep-16 to Sep-17 Retail—U.S., South West (6 properties) 76,894 37,458 78,579 90 37,458 78,669 116,127 (8,012) Oct-14 to Sep-17 Retail—U.S., West (2 properties) 33,000 18,633 36,794 — 18,633 36,794 55,427 (2,875) Sep-17 Self-storage—U.S., North East (1 property) 14,500 2,202 11,498 172 2,202 11,670 13,872 (1,361) Dec-15 Industrial—U.S., South East (2 properties) — 10,121 17,295 255 10,121 17,550 27,671 (837) Mar-19 to Apr-19 $ 1,892,995 $ 446,973 $ 1,981,150 $ 62,507 $ 447,002 $ 2,043,628 $ 2,490,630 (2) $ (224,190) 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 $2.6 billion. (3) Depreciation is computed based upon estimated useful lives as described in Note 7 to the Consolidated Financial Statements. 2019 2018 2017 Beginning balance, January 1 $ 2,972,803 $ 2,755,050 $ 1,986,285 Additions during the year: Acquisitions (1) 8,472 445,170 725,955 Acquisitions through foreclosure 27,416 — — Improvements 30,865 25,764 18,575 Contingent consideration issued 2,877 38,211 — Measurement period adjustments — — 660 Foreign currency translation — — 59,508 Total additions 69,630 509,145 804,698 Deductions during the year: Costs of real estate sold (535,417) (269,989) (35,774) Foreign currency translation (15,702) (21,260) — Other (684) (143) (159) Total deductions (551,803) (291,392) (35,933) Ending balance, December 31 $ 2,490,630 $ 2,972,803 $ 2,755,050 (1) Refer to Note 16 to the Consolidated Financial Statements for a discussion of property acquisitions from related parties. 2019 2018 2017 Beginning balance, January 1 $ 187,913 $ 107,569 $ 41,565 Depreciation expense 92,024 91,188 65,253 Disposition/write-offs (54,260) (9,389) (1,785) Foreign currency translation (1,487) (1,455) 2,536 Ending balance, December 31 $ 224,190 $ 187,913 $ 107,569 |
Schedule IV-Mortgage Loans on R
Schedule IV-Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
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 e December 31, 2019 (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) Mixed Use, Birmingham, United Kingdom $ — $ 331,342 $ 327,235 3GBP+4.35% I/O 1/11/2024 $ — Multifamily, Various, United Kingdom — 301,709 299,822 3GBP+4.50% I/O 10/26/2021 — Office, Irvine, CA — 303,516 302,496 L+2.25% to 4.50% I/O 9/9/2020 — Aggregated First Mortgages: (5) Hotel, International, Floating (3 mortgages) N/A N/A 33,265 3EU+4.90% N/A 2022 — Hotel, International, Floating (2 mortgages) N/A N/A 32,798 L+3.00% to 9.00% N/A 2021 — Hotel, Mid Atlantic, Floating (4 mortgages) N/A N/A 95,277 L+2.00% to 6.80% N/A 2022 — Hotel, Midwest, Floating (4 mortgages) N/A N/A 53,482 L+2.25% to 8.63% N/A 2020 — Hotel, North East, Floating (4 mortgages) N/A N/A 159,787 L+2.50% to 10.00% N/A 2020-2023 — Hotel, South East, Floating (4 mortgages) N/A N/A 59,462 L+2.40% to 7.40% N/A 2022 — Hotel, South West, Floating (8 mortgages) N/A N/A 158,577 L+2.00% to 7.67% N/A 2023 — Hotel, Various, Floating (9 mortgages) N/A N/A 364,603 L+2.00% to 10.50% N/A 2021 — Hotel, West, Floating (17 mortgages) N/A N/A 414,745 L+2.00% to 9.50% N/A 2021-2024 — Industrial, South East, Fixed (4 mortgages) N/A N/A 37,365 8.18% N/A 2024 — Mixed Use, International, Fixed (1 mortgage) N/A N/A 27,069 8.50% N/A 2021 — Mixed Use, International, Floating (2 mortgages) N/A N/A 98,646 3EU+4.85% N/A 2023 — Mixed Use, International, Floating (3 mortgages) N/A N/A 118,001 GBP+3.15% to 5.75% N/A 2020-2022 — Mixed Use, Mid Atlantic, Floating (1 mortgage) N/A N/A 3,796 L+3.15% N/A 2024 — Mixed Use, South East, Fixed (4 mortgages) N/A N/A 108,133 5.00% to 12.00% N/A 2024 — Mixed Use, South West, Floating (10 mortgages) N/A N/A 129,970 L+2.50% to 10.00% N/A 2020-2022 — Mixed Use, West, Floating (2 mortgages) N/A N/A 208,279 L+6.37% N/A 2020 — Multi-family, International, Fixed (1 mortgage) N/A N/A 10,655 8.00% N/A 2021 — Multi-family, Midwest, Fixed (1 mortgage) N/A N/A 1,294 6.28% N/A 2024 — Multi-family, Mid Atlantic, Floating (2 mortgages) N/A N/A 89,970 L+1.75% to 5.75% N/A 2023 — Multi-family, North East, Floating (7 mortgages) N/A N/A 280,322 L+1.85% to 6.45% N/A 2021-2023 — Multi-family, South West, Floating (10 mortgages) N/A N/A 183,159 L+2.50% to 3.00% N/A 2021-2022 — Multi-family, West, Floating (4 mortgages) N/A N/A 24,201 L+3.75% to 9.25% N/A 2020 — Office, International, Fixed (1 mortgage) N/A N/A 151,772 5.35% N/A 2021 — Office, International, Floating (2 mortgages) N/A N/A 259,567 3GBP+3.50% to 3.65% N/A 2023 — Office, International, Floating (2 mortgages) N/A N/A 26,780 EUR+6.00% to 7.80% N/A 2021-2022 — Office, Mid Atlantic, Floating (25 mortgages) N/A N/A 609,434 L+1.75% to 7.50% N/A 2021-2023 — Office, Midwest, Floating (6 mortgages) N/A N/A 129,593 L+1.75% to 9.75% N/A 2021 — Office, North East, Floating (22 mortgages) N/A N/A 826,429 L+2.80% to 12.00% N/A 2020-2023 — Office, South East, Floating (4 mortgages) N/A N/A 126,443 L+2.00% to 8.25% N/A 2020 — Office, South West, Floating (11 mortgages) N/A N/A 271,045 L+2.00% to 8.55% N/A 2020-2023 — Office, West, Floating (19 mortgages) N/A N/A 631,645 L+1.25% to 8.60% N/A 2021-2024 — Other, Midwest, Floating (4 mortgages) N/A N/A 59,729 L+4.50% to 11.17% N/A 2021 — Other, Various, Fixed (1 mortgage) N/A N/A 40,583 10.00% N/A 2025 — Other, Various, Floating (1 mortgage) N/A N/A 76,583 3M L+4.00% N/A 2024 — Other, West, Floating (4 mortgages) N/A N/A 24,356 L+7.00% N/A 2021 — Residential, North East, Fixed (1 mortgage) N/A N/A 31,855 8.00% N/A 2020 16,167 Residential, North East, Floating (16 mortgages) N/A N/A 727,851 L+2.50% to 8.60% N/A 2020-2022 49,149 Residential, West, Floating (3 mortgages) N/A N/A 34,118 L+2.75% to 8.75% N/A 2021 — Residential, Various, Fixed (1,197 mortgages) N/A N/A 671,572 3.25% to 9.00% N/A 2013-2019 5,619 Retail, Midwest, Floating (4 mortgages) N/A N/A 40,436 L+2.75% to 10.75% N/A 2020 — Retail, North East, Floating (1 mortgage) N/A N/A 167,678 L+7.25% N/A 2021 — Retail, South West, Floating (8 mortgages) N/A N/A 71,350 L+2.25% to 15.25% N/A 2020 — Retail, West, Fixed (1 mortgage) N/A N/A 503 7.26% N/A 2023 — Loans Held-for-Sale, Various, Fixed N/A N/A 764,622 3.40% to 9.13% N/A 2015-2029 2,528 Aggregated Subordinated and Mezzanine Loans: (5) Hotel, North East, Floating (2 mortgages) N/A N/A 36,167 L+7.55% to 9.00% N/A 2021 — Hotel, South East, Floating (3 mortgages) N/A N/A 82,947 L+6.75% to 7.04% N/A 2021-2022 — Industrial, South East, Fixed (1 mortgage) N/A N/A 2,337 8.18% N/A 2024 — Industrial, South East, Floating (2 mortgages) N/A N/A 21,882 L+12.75% N/A 2020 — Mixed Use, International, Floating (1 mortgage) N/A N/A 56,515 3EU+7.25% N/A 2022 — Mixed Use, South East, Floating (2 mortgages) N/A N/A 25,628 L+5.50% to 10.25% N/A 2021 — Mixed Use, South West, Floating (1 mortgage) N/A N/A 83,353 L+11.85% N/A 2021 — Multi-family, Mid Atlantic, Floating (1 mortgage) N/A N/A 24,330 L+9.75% N/A 2022 — Multi-family, North East, Floating (3 mortgages) N/A N/A 62,780 L+7.10% to 9.25% N/A 2021-2023 — Office, International, Floating (2 mortgages) N/A N/A 23,491 3EU+8.95% N/A 2024 — Office, North East, Fixed (2 mortgages) N/A N/A 34,456 8.72% N/A 2023 — Office, South East, Fixed (1 mortgage) N/A N/A 7,245 8.25% N/A 2020 — Office, West, Floating (1 mortgage) N/A N/A 25,300 L+6.67% N/A 2022 — Other, West, Floating (2 mortgages) N/A N/A 61,577 L+11.00% N/A 2021 — Retail, Midwest, Fixed (2 mortgages) N/A N/A 11,977 7.16% N/A 2024 11,977 Prior Face Carrying Payment Maturity Principal Amount of Description/ Location Liens (1) Amount Amount Interest Rate (2) Terms (3) Date (4) Delinquent Loans Loan Loss Allowance — — (33,415) — Prepaid Loan Costs, Net — — (2,230) — $ 9,890,693 (6) $ 85,440 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 $10.0 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, 2019, 2018 and 2017 (amounts in thousands): For the year ended December 31, 2019 2018 2017 Balance at January 1 $ 7,806,699 $ 7,357,034 $ 5,946,274 Acquisitions/originations/additional funding 8,174,321 6,543,873 5,494,837 Capitalized interest 109,978 62,445 73,784 Basis of loans sold (3,921,171) (3,082,347) (1,634,717) Loan maturities/principal repayments (2,387,843) (3,086,107) (2,657,696) Discount accretion/premium amortization 29,775 37,408 38,560 Changes in fair value 71,601 40,522 66,987 Unrealized foreign currency translation gain (loss) 38,050 (26,645) 42,356 Loan loss provision, net (2,616) (34,821) 5,458 Loan foreclosures (27,303) — — Transfer to/from other asset classifications (798) (4,663) (18,809) Balance at December 31 $ 9,890,693 $ 7,806,699 $ 7,357,034 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, we have financed a pool of our loans through a collateralized loan obligation (“CLO”) which is considered a VIE. We also hold interests in certain other entities which are considered VIEs as the limited partners of those 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 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 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 We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. 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 residential mortgage loans held-for-investment were made in order to maintain consistency across all our residential mortgage loans. |
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 |
Business Combinations | Business Combinations Under ASC 805, Business Combinations 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. |
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 or we have elected to apply the fair value option at purchase. |
Loan Impairment | Loan Impairment We evaluate each loan classified as held-for-investment not under the fair value option 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 |
Servicing Rights Intangibles | Servicing Rights Intangibles Our identifiable intangible assets include domestic special servicing rights for which 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. |
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. |
Leases (Lessee) | Leases On January 1, 2019, ASC 842 , Leases , became effective for the Company. ASC 842 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 affected by this ASC. We elected to apply the provisions of ASC 842 as of January 1, 2019 and not to retrospectively adjust prior periods presented. Such application did not result in any cumulative-effect adjustment as of January 1, 2019. We elected the “package of practical expedients” for transition purposes, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs for leases that commenced prior to January 1, 2019. We also elected not to apply the recognition provisions of ASC 842 to short-term leases, which have original lease terms of 12 months or less. As a lessor, we elected not to separate nonlease components, such as reimbursements from tenants for common area maintenance (“CAM”), from lease components for all classes of underlying assets, and continue to recognize such nonlease components ratably in rental income. We also elected to continue to exclude from rental income all sales, use and other similar taxes collected from lessees. As required by ASC 842, we no longer record as revenues and expenses lessor costs (such as property taxes) paid directly by the lessees. The application of ASC 842 has had no material effect on our consolidated financial statements, as all of our leases, as both lessor and lessee, are currently classified as operating leases, which are subject to essentially the same straight-line revenue and expense recognition as in the past. As a lessee, our only significant long-term lease as of January 1, 2019 resulted in the recognition of a $12.0 million lease liability and corresponding right-of-use asset , which are classified within “ Accounts payable, accrued expenses and other liabilities ” and “ Other assets ”, respectively, in our consolidated balance sheet as of December 31, 2019. |
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 fair value practicability exception described below 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 other equity investments set forth 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 other 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, estimated fair values of underlying assets 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, 2019 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 |
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 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, is recognized as interest income on a level-yield basis over the life of the loan. difference. This amount of non-accretable difference may change over time based on the actual performance of these securities, their underlying collateral, actual and projected cash flow from such collateral, economic conditions and other factors. If the performance of a credit deteriorated security is more favorable than forecasted, we will generally accrete more credit discount into interest income than initially or previously expected. These adjustments are made prospectively beginning in the period subsequent to the determination that a favorable change in performance is projected. Conversely, if the performance of a credit deteriorated security is less favorable than forecasted, an OTTI may be taken, and the amount of discount accreted into income will generally be less than previously expected. 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 |
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 is only 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. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under the Code. The Company is subject to federal income taxation at corporate rates on its REIT taxable income, however, the Company is allowed a deduction for the amount of dividends paid to its stockholders in arriving at its REIT taxable income. As a result, distributed net income of the Company is subjected to taxation at the stockholder level only. The Company intends to continue operating in a manner that will permit it to maintain its qualification as a REIT for tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company evaluates the realizability of its deferred tax assets and recognizes a valuation allowance if, based on the available evidence, both positive and negative, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers, among other matters, estimates of expected future taxable income, nature of current and cumulative losses, existing and projected book/tax differences, tax planning strategies available, and the general and industry specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods. We recognize tax positions in the financial statements only when it is more likely than not that, based on the technical merits of the tax position, the position will be sustained upon examination by the relevant taxing authority. A tax position is measured at the largest amount of benefit that will more likely than not be realized upon settlement. If, as a result of new events or information, a recognized tax position no longer is considered more likely than not to be sustained upon examination, a liability is established for the unrecognized benefit with a corresponding charge to income tax expense in our consolidated statement of operations. We report interest and penalties, if any, related to income tax matters as a component of income tax expense. |
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 RSAs and RSUs, (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our outstanding Convertible 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, 2019, 2018 and 2017, 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 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. We expect this ASU to result in our recognition of higher levels of potential credit losses earlier in the credit cycle. Though we are still in the process of finalizing the effect of this ASU, we expect to record an initial increase in our allowance for credit losses of between On January 26, 2017, the FASB issued ASU 2017-04, Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment On August 28, 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework On October 31, 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable Interest Entities |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Divestitures | |
Summary of assets acquired and liabilities assumed | The following table summarizes the identified assets acquired and liabilities assumed as of the respective acquisition dates (amounts in thousands): 2018 2017 Infrastructure REIS Equity Assets acquired: Lending Segment Portfolio Loans held-for-investment $ 1,649,630 $ — Loans held-for-sale 319,710 — Investment securities 65,060 — Properties — 38,770 Intangible assets — 11,955 Accrued interest receivable 13,843 — Other assets — 85 Total identifiable assets acquired 2,048,243 50,810 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 1,516 Derivative liabilities 282 — Total liabilities assumed 9,099 1,516 Net assets acquired $ 2,039,144 $ 49,294 |
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 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, 2019 | |
Restricted Cash. | |
Summary of restricted cash | A summary of our restricted cash as of December 31, 2019 and 2018 is as follows (amounts in thousands): As of December 31, 2019 2018 Cash restricted by lender $ 40,818 $ 175,659 Cash collateral for derivative financial instruments 37,912 37,245 Funds held on behalf of borrowers and tenants 11,903 12,838 Other restricted cash 5,010 22,299 $ 95,643 $ 248,041 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2019 Value Amount Coupon (1) (years)(2) First mortgages (3) $ 7,928,026 $ 7,962,788 5.8 % 2.0 First priority infrastructure loans 1,397,448 1,416,164 5.6 % 4.9 Subordinated mortgages (4) 75,724 77,055 8.8 % 3.4 Mezzanine loans (3) 484,164 484,408 11.0 % 1.9 Residential loans, fair value option (5) 671,572 654,925 6.1 % 3.8 Other 62,555 66,525 8.2 % 1.6 Total loans held-for-investment 10,619,489 10,661,865 Loans held-for-sale, fair value option, residential (5) 605,384 587,144 6.2 % 3.9 Loans held-for-sale, fair value option, commercial 159,238 160,635 3.9 % 10.0 Loans held-for-sale, infrastructure 119,724 121,271 3.3 % 2.1 Total gross loans 11,503,835 11,530,915 Loan loss allowance (33,611) — Total net loans $ 11,470,224 $ 11,530,915 December 31, 2018 First mortgages (3) $ 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 (4) 52,778 53,996 8.9 % 3.7 Mezzanine loans (3) 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 (39,151) — Total net loans $ 9,794,254 $ 9,876,545 (1) Calculated using LIBOR or other applicable index rates as of December 31, 2019 and 2018 for variable rate loans. (2) 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. (3) 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 $967.0 million and $1.0 billion being classified as first mortgages as of December 31, 2019 and 2018, respectively. (4) 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. (5) During the year ended December 31, 2019, $340.9 million of residential loans held-for-sale were reclassified into residential loans held-for-investment. |
Summary of variable rate loans held-for-investment | As of December 31, 2019, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average December 31, 2019 Value Spread Above Index Commercial loans $ 8,030,499 4.2 % First priority infrastructure loans 1,397,448 3.8 % Total variable rate loans held-for-investment $ 9,427,947 4.2 % |
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—Loan to collateral value ratio (“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 | The risk ratings for loans subject to our rating system, which excludes loans held-for-sale, by class of loan were as follows as of December 31, 2019 and 2018 (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 December 31, 2019 1 $ 503 $ — $ — $ — $ 23,550 $ — $ 24,053 0.2 % 2 4,186,776 — 37,980 120,372 31,178 — 4,376,306 38.0 % 3 3,509,601 — 25,767 363,792 — — 3,899,160 33.9 % 4 40,436 — — — — — 40,436 0.4 % 5 59,116 — — — — — 59,116 0.5 % N/A 131,594 (1) 1,397,448 (2) 11,977 (1) — 7,827 (1) — 1,548,846 13.5 % $ 7,928,026 $ 1,397,448 $ 75,724 $ 484,164 $ 62,555 $ — 9,947,917 Residential loans held-for-investment, fair value option 671,572 5.8 % Loans held-for-sale 884,346 7.7 % Total gross loans $ 11,503,835 100.0 % December 31, 2018 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) Principally represents loans individually evaluated for impairment in accordance with ASC 310-10. (2) First priority infrastructure loans were not risk rated as the Company is in the process of developing a risk rating policy for these loans. |
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, 2019 2018 2017 Allowance for loan losses at January 1 $ 39,151 $ 4,330 $ 9,788 Provision for (reversal of) loan losses 3,812 (3,384) (5,458) Provision for impaired loans 3,314 38,205 — Charge-offs (12,666) — — Recoveries — — — Allowance for loan losses at December 31 $ 33,611 $ 39,151 $ 4,330 Recorded investment in loans related to the allowance for loan loss $ 291,768 $ 275,112 $ 170,941 |
Schedule of activity in loan portfolio | The activity in our loan portfolio was as follows (amounts in thousands): For the year ended December 31, 2019 2018 2017 Balance at January 1 $ 9,794,254 $ 7,382,641 $ 5,946,274 Acquisitions/originations/additional funding 9,094,714 6,723,144 5,500,539 Acquisition of Infrastructure Lending Portfolio — 1,969,340 — Capitalized interest (1) 110,632 63,047 74,339 Basis of loans sold (2) (4,311,390) (3,082,347) (1,634,717) Loan maturities/principal repayments (3,304,838) (3,272,666) (2,658,522) Discount accretion/premium amortization 35,387 38,099 39,084 Changes in fair value 71,601 40,522 66,987 Unrealized foreign currency translation gain (loss) 40,155 (32,341) 42,356 Loan loss provision, net (7,126) (34,821) 5,458 Loan foreclosures (27,303) — — Transfer to/from other asset classifications (25,862) (364) 843 Balance at December 31 $ 11,470,224 $ 9,794,254 $ 7,382,641 (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. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of investment securities | Investment securities were comprised of the following as of December 31, 2019 and 2018 (amounts in thousands): Carrying Value as of December 31, 2019 December 31, 2018 RMBS, available-for-sale $ 189,576 $ 209,079 RMBS, fair value option (1) 147,034 87,879 CMBS, fair value option (1), (2) 1,295,363 1,157,508 Held-to-maturity (“HTM”) debt securities, amortized cost 570,638 644,149 Equity security, fair value 12,664 11,893 Subtotal — 2,215,275 2,110,508 VIE eliminations (1) (1,405,037) (1,204,040) Total investment securities $ 810,238 $ 906,468 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $186.6 million and $8.4 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2019 and 2018, respectively. |
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, 2019 Purchases $ — $ 120,103 $ 238,213 $ 91,162 $ — $ (351,220) $ 98,258 Sales — 41,501 150,365 — — (184,540) 7,326 Principal collections 26,929 16,500 40,490 167,383 — (45,642) 205,660 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 (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 | The tables below summarize various attributes of our investments in available-for-sale RMBS as of December 31, 2019 and 2018 (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, 2019 RMBS $ 148,385 $ (9,805) $ 138,580 $ (314) $ 51,310 $ — $ 50,996 $ 189,576 December 31, 2018 RMBS $ 165,461 $ (9,897) $ 155,564 $ (31) $ 53,546 $ — $ 53,515 $ 209,079 Weighted Average Coupon (1) Weighted Average WAL December 31, 2019 RMBS 3.1 % BB- 5.6 December 31, 2018 RMBS 3.7 % CCC- 6.0 (1) Calculated using the December 31, 2019 and 2018 one-month LIBOR rate of 1.763% and 2.503%, respectively, for floating rate securities. (2) Represents the remaining 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, 2019 and 2018 (amounts in thousands): December 31, 2019 December 31, 2018 Principal balance $ 278,853 $ 309,497 Accretable yield (56,108) (54,779) Non-accretable difference (84,165) (99,154) Total discount (140,273) (153,933) Amortized cost $ 138,580 $ 155,564 |
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, 2019 and 2018 (amounts in thousands): Non-Accretable Accretable Yield Difference Balance as of January 1, 2018 $ 55,712 $ 121,867 Accretion of discount (10,932) — Principal write-downs, net — (3,682) Sales (9,032) — Transfer to/from non-accretable difference 19,031 (19,031) Balance as of December 31, 2018 54,779 99,154 Accretion of discount (9,945) — Principal write-downs, net — (3,715) Transfer to/from non-accretable difference 11,274 (11,274) Balance as of December 31, 2019 $ 56,108 $ 84,165 |
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, 2019 and 2018, 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, 2019 RMBS $ — $ 1,380 $ — $ (314) As of December 31, 2018 RMBS $ 2,148 $ — $ (31) $ — |
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, 2019 and 2018 (amounts in thousands): Net Carrying Amount Gross Unrealized Gross Unrealized (Amortized Cost) Holding Gains Holding Losses Fair Value December 31, 2019 CMBS $ 383,473 $ 946 $ (3,001) $ 381,418 Preferred interests 142,012 1,148 (353) 142,807 Infrastructure bonds 45,153 — (651) 44,502 Total $ 570,638 $ 2,094 $ (4,005) $ 568,727 December 31, 2018 CMBS $ 408,556 $ 2,435 $ (3,349) $ 407,642 Preferred interests 174,825 703 — 175,528 Infrastructure bonds 60,768 178 (168) 60,778 Total $ 644,149 $ 3,316 $ (3,517) $ 643,948 |
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, 2019 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 284,251 $ — $ 5,371 $ 289,622 One to three years 99,222 141,659 — 240,881 Three to five years — 353 — 353 Thereafter — — 39,782 39,782 Total $ 383,473 $ 142,012 $ 45,153 $ 570,638 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Properties | |
Summary of properties | The table below summarizes our properties held as of December 31, 2019 and December 31, 2018 (dollars in thousands): Depreciable Life December 31, 2019 December 31, 2018 Property Segment Land and land improvements 0 – 15 years $ 484,397 $ 648,972 Buildings and building improvements 5 – 45 years 1,687,756 1,980,283 Furniture & fixtures 3 – 7 years 52,567 46,048 Investing and Servicing Segment Land and land improvements 0 – 15 years 54,052 82,332 Buildings and building improvements 3 – 40 years 182,048 213,010 Furniture & fixtures 2 – 5 years 2,139 2,158 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 7 years 11,386 — Buildings and building improvements 10 – 23 years 16,285 — Properties, cost 2,490,630 2,972,803 Less: accumulated depreciation (224,190) (187,913) Properties, net $ 2,266,440 $ 2,784,890 (1) Represents properties acquired through loan foreclosure. Refer to Note 5 for further discussion. |
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): 2020 $ 177,516 2021 95,524 2022 89,602 2023 79,177 2024 71,271 Thereafter 688,437 Total $ 1,201,527 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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) 2019 2018 Equity method: Retail Fund (see Note 16) 33% $ — $ 114,362 Equity interest in a natural gas power plant (2) 10% 25,862 — Investor entity which owns equity in an online real estate company 50% 9,473 9,372 Equity interests in commercial real estate 50% 1,907 6,294 Equity interest in and advances to a residential mortgage originator (3) N/A 12,002 9,082 Various 25% - 50% 8,339 6,984 57,583 146,094 Other: Equity interest in a servicing and advisory business (4) 4% — 6,207 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 9,225 9,225 Various 0% - 2% 17,521 10,239 26,746 25,671 $ 84,329 $ 171,765 (1) (2) (3) (4) |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (amounts in thousands): As of December 31, 2019 As of December 31, 2018 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 16,917 $ — $ 16,917 $ 20,557 $ — $ 20,557 In-place lease intangible assets 135,293 (84,383) 50,910 198,220 (100,873) 97,347 Favorable lease intangible assets 24,218 (6,345) 17,873 36,895 (9,766) 27,129 Total net intangible assets $ 176,428 $ (90,728) $ 85,700 $ 255,672 $ (110,639) $ 145,033 |
Summary of activity within intangible assets | The following table summarizes the activity within intangible assets for the years ended December 31, 2019 and 2018 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2018 $ 30,759 $ 122,465 $ 29,868 $ 183,092 Acquisition of 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 Sale of Ireland Portfolio — (20,271) (5,654) (25,925) Sale of certain REIS Equity Portfolio properties — (5,208) (13) (5,221) Acquisition of additional REIS Equity Portfolio property — 277 — 277 Amortization — (19,297) (3,256) (22,553) Foreign exchange loss — (806) (221) (1,027) Impairment (1) — (1,132) (112) (1,244) Changes in fair value due to changes in inputs and assumptions (3,640) — — (3,640) Balance as of December 31, 2019 $ 16,917 $ 50,910 $ 17,873 $ 85,700 (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): 2020 $ 11,699 2021 9,674 2022 7,892 2023 6,136 2024 4,742 Thereafter 28,640 Total $ 68,783 |
Secured Borrowings (Tables)
Secured Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Secured Borrowings | |
Summary of secured financing agreements | The following table is a summary of our secured financing agreements in place as of December 31, 2019 and 2018 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum December 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2019 2018 Repurchase Agreements: Commercial Loans Aug 2020 to Jan 2024 (b) Aug 2021 to Apr 2028 (b) (c) $ 5,327,761 $ 9,066,480 (d) $ 3,640,620 $ 3,598,311 Residential Loans Feb 2021 N/A LIBOR + 2.10% 14,704 400,000 11,835 — Infrastructure Loans Feb 2020 Feb 2021 LIBOR + 1.75% 227,463 500,000 188,198 — Conduit Loans Feb 2020 to Jun 2022 Feb 2021 to Jun 2023 LIBOR + 2.10% 109,864 350,000 86,575 35,034 CMBS/RMBS Sep 2020 to Dec 2029 (e) Dec 2020 to June 2030 (e) (f) 1,005,348 837,566 682,229 656,405 Total Repurchase Agreements 6,685,140 11,154,046 4,609,457 4,289,750 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 542,281 650,000 (g) 198,955 — Infrastructure Acquisition Facility Sep 2021 Sep 2022 (h) 754,443 771,534 603,642 1,551,148 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.12% 524,197 1,000,000 428,206 — Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (i) N/A 3.94% 1,499,356 1,196,698 1,196,492 1,475,382 Property Mortgages - Variable rate May 2020 to Jun 2026 N/A LIBOR + 2.49% 783,460 714,810 696,503 645,344 Term Loan and Revolver (j) N/A (j) N/A (j) 519,000 399,000 300,000 FHLB Feb 2021 N/A (k) 1,262,250 2,000,000 867,870 500,000 Total Other Secured Financing 5,365,987 6,852,042 4,390,668 4,471,874 $ 12,051,127 $ 18,006,088 9,000,125 8,761,624 Unamortized net discount (8,347) (963) Unamortized deferred financing costs (85,730) (77,096) $ 8,906,048 $ 8,683,565 (a) Subject to certain conditions as defined in the respective facility agreement. (b) For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (c) Certain facilities with an outstanding balance of $874.9 million as of December 31, 2019 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 1.90% . (d) The aggregate initial maximum facility size of $8.9 billion may be increased at our option, subject to certain conditions. This amount includes such upsizes. (e) Certain facilities with an outstanding balance of $295.0 million as of December 31, 2019 carry a rolling 11-month or 12-month term which may reset monthly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $184.7 million as of December 31, 2019 has a fixed annual interest rate of 3.49% . All other facilities are variable rate with a weighted average rate of LIBOR + 1.58% . (g) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (h) Consists of 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, which was entered into in September 2018. (i) The weighted average maturity is 9.8 years as of December 31, 2019. (j) Consists of: (i) a $399.0 million term loan facility that matures in July 2026 with an annual interest rate of LIBOR + 2.50% ; and (ii) a $120.0 million revolving credit facility that matures in July 2024 with an annual interest rate of LIBOR + 3.00% . These facilities are secured by the equity interests in certain of our subsidiaries which totaled $3.1 billion as of December 31, 2019. (k) FHLB financing with an outstanding balance of $438.5 million as of December 31, 2019 has a weighted average fixed annual interest rate of 2.01% . The remainder is variable rate with a weighted average rate of LIBOR + 0.28% . |
Schedule of collateralized loan obligations | The following table is a summary of our CLO as of December 31, 2019 (amounts in thousands): Face Carrying Weighted Count Amount Value Average Spread Maturity Collateral assets 20 $ 1,073,504 $ 1,073,504 LIBOR + 3.34% (a) Nov 2023 (b) Financing 1 936,375 928,060 LIBOR + 1.65% (c) July 2038 (d) (a) Represents the weighted-average coupon earned on variable rate loans during the year ended December 31, 2019. Of the loans financed by the CLO, 9% earned fixed weighted average interest of 6.84% . (b) Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets. (c) Represents the weighted-average cost of financing incurred during the year ended December 31, 2019, inclusive of deferred issuance costs. (d) Repayments of the CLO are tied to timing of the related collateral asset repayments. The term of the CLO financing obligation represents the legal final maturity date. |
Schedule of five-year principal repayments for secured financings | 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 following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands): Repurchase Other Secured Agreements Financing CLO Total 2020 $ 480,249 $ 564,886 $ — $ 1,045,135 2021 625,956 857,429 — 1,483,385 2022 1,010,970 552,175 — 1,563,145 2023 1,056,812 705,283 — 1,762,095 2024 1,065,312 284,235 — 1,349,547 Thereafter 370,158 1,426,660 936,375 (a) 2,733,193 Total $ 4,609,457 $ 4,390,668 $ 936,375 $ 9,936,500 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2019 2018 2019 Convertible Notes N/A N/A N/A N/A $ — $ 77,969 2021 Senior Notes (February) 3.63 % 3.89 % 2/1/2021 1.1 years 500,000 500,000 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 2.0 years 700,000 700,000 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 3.3 years 250,000 250,000 2025 Senior Notes 4.75 % 5.04 % 3/15/2025 5.2 years 500,000 500,000 Total principal amount 1,950,000 2,027,969 Unamortized discount—Convertible Notes (3,610) (4,644) Unamortized discount—Senior Notes (12,144) (16,416) Unamortized deferred financing costs (5,624) (8,078) Carrying amount of debt components $ 1,928,622 $ 1,998,831 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes $ 3,755 $ 3,755 (1) Effective rate includes the effects of underwriter purchase discount and the adjustment for the conversion option on our Convertible 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, 2019 (amounts in thousands, except rates): December 31, 2019 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2019 2018 2017 2018 Notes N/A N/A — — 541 2019 Notes N/A N/A — 91 1,358 2023 Notes 38.5959 $ 25.91 — — — — 91 1,899 (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, 2019, 2018 and 2017, the market price of the Company’s common stock was $24.86, $19.71 and $21.35 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, 2019 | |
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 | Repayment of repurchase Face Amount Proceeds agreements For the Year Ended December 31, 2019 $ 1,781,981 $ 1,845,890 $ 1,289,129 2018 1,517,599 1,563,433 1,147,316 2017 1,517,368 1,582,050 1,152,938 |
Commercial and Residential Lending Segment | |
Summary of loans sold and loans transferred as secured borrowings by the Lending segment net of expenses | 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 2019 $ 751,210 $ 748,045 $ 1,282,527 $ 1,331,856 $ — $ — 2018 840,400 835,849 660,865 683,556 — — 2017 55,470 52,609 — — 75,000 74,098 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Sell Euros ("EUR") 168 199,183 EUR January 2020 – June 2023 Fx contracts – Sell Pounds Sterling ("GBP") 93 444,236 GBP January 2020 – December 2023 Fx contracts – Sell Australian dollar ("AUD") 4 25,850 AUD March 2020 – November 2021 Interest rate swaps – Paying fixed rates 37 1,299,466 USD July 2022 – January 2030 Interest rate swaps – Receiving fixed rates 2 970,000 USD January 2021- March 2025 Interest rate caps 12 742,299 USD January 2020 – August 2023 Credit index instruments 5 89,000 USD November 2054 – August 2061 Interest rate swap guarantees 6 394,671 USD March 2022 – June 2025 Interest rate swap guarantees 1 9,390 GBP December 2024 Total 328 |
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, 2019 and 2018 (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, 2019 2018 2019 2018 Interest rate contracts 14,385 30,791 — 14,457 Interest rate swap guarantees — — 614 396 Foreign exchange contracts 14,558 21,346 7,834 562 Credit index instruments — 554 292 — Total derivatives $ 28,943 $ 52,691 $ 8,740 $ 15,415 (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 | a 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 2019 2018 2017 Interest rate contracts (Loss) gain on derivative financial instruments $ (10,516) $ (1,593) $ (5,165) Interest rate swap guarantees (Loss) gain on derivative financial instruments (3,350) (114) — Foreign exchange contracts (Loss) gain on derivative financial instruments 8,801 36,040 (65,645) Credit index instruments (Loss) gain on derivative financial instruments (1,245) 270 (1,722) $ (6,310) $ 34,603 $ (72,532) |
Schedule of Gain / (Loss) recognized in Income for Derivatives Not Designated as Hedging Instruments | Gain Gain Reclassified Recognized from AOCI Gain Recognized Derivatives Designated as Hedging Instruments in OCI into Income in Income Location of Gain For the Year Ended December 31, (effective portion) (effective portion) (ineffective portion) Recognized in Income 2019 $ — $ — $ — Interest expense 2018 $ 8 $ 33 $ — Interest expense 2017 $ 54 $ 3 $ — Interest expense |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 (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, 2019 Derivative assets $ 28,943 $ — $ 28,943 $ 5,312 $ 14,208 $ 9,423 Derivative liabilities $ 8,740 $ — $ 8,740 $ 5,312 $ 292 $ 3,136 Repurchase agreements 4,609,457 — 4,609,457 4,609,457 — — $ 4,618,197 $ — $ 4,618,197 $ 4,614,769 $ 292 $ 3,136 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities | |
Summary of assets and liabilities of our consolidated CLO | The following table details the assets and liabilities of our consolidated CLO (amounts in thousands): As of December 31, 2019 Assets: Loans held-for-investment $ 1,073,504 Accrued interest receivable 3,129 Other assets 26,496 Total Assets $ 1,103,129 Liabilities Accounts payable, accrued expenses and other liabilities $ 1,362 Collateralized loan obligations, net 928,060 Total Liabilities $ 929,422 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity and Non-Controlling Interests | |
Schedule of dividends declared by board of directors | Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 11/8/19 12/31/19 12/30/19 1/15/20 $ 0.48 Quarterly 8/7/19 9/30/19 9/27/19 10/15/19 0.48 Quarterly 5/8/19 6/28/19 6/27/19 7/15/19 0.48 Quarterly 2/28/19 3/29/19 3/28/19 4/15/19 0.48 Quarterly 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 |
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, 2019, 2018 and 2017 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period September 2019 RSU 1,200,000 $ 29,484 (1) 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 (1) Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period. |
Schedule of common stock issued as incentive compensation under the Management Agreement | Timing of Issuance Shares of Common Stock Issued Price per share November 2019 38,942 $ 24.08 March 2019 495,363 22.16 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 |
Summary of share-based compensation expenses | The following table summarizes our share-based compensation expenses during the years ended December 31, 2019, 2018 and 2017 (in thousands): For the year ended December 31, 2019 2018 2017 Management fees: Manager incentive fee $ 10,082 $ 20,700 $ 21,072 2017 Manager Equity Plan (1) 20,255 12,573 10,423 30,337 33,273 31,495 General and administrative: 2017 Equity Plan (1) 15,900 10,185 7,728 15,900 10,185 7,728 Total share-based compensation expense (2) $ 46,237 $ 43,458 $ 39,223 (1) (2) |
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, 2019 1,436,445 997,920 2,434,365 $ 21.52 Granted 520,236 1,200,000 1,720,236 24.01 Vested (518,298) (892,323) (1,410,621) 22.20 Forfeited (25,213) — (25,213) 21.84 Balance as of December 31, 2019 1,413,170 1,305,597 2,718,767 22.74 (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 Equity 2017 Manager Plan Equity Plan Total 2020 799,039 668,701 1,467,740 2021 440,173 391,619 831,792 2022 173,958 245,277 419,235 Total 1,413,170 1,305,597 2,718,767 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 | For the Year Ended December 31, 2019 2018 2017 Basic Earnings Income attributable to STWD common stockholders $ 509,664 $ 385,830 $ 400,770 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,873) (3,592) (3,183) Basic earnings $ 505,791 $ 382,238 $ 397,587 Diluted Earnings Income attributable to STWD common stockholders $ 509,664 $ 385,830 $ 400,770 Less: Income attributable to participating shares not already deducted as non-controlling interests (3,873) (3,592) (3,183) Add: Interest expense on Convertible Notes (1) 12,354 25,148 — Add: Loss on extinguishment of Convertible Notes (1) — 2,099 — Diluted earnings $ 518,145 $ 409,485 $ 397,587 Number of Shares: Basic — Average shares outstanding 279,337 265,279 259,620 Effect of dilutive securities — Convertible Notes (1) 9,805 22,659 1,899 Effect of dilutive securities — Contingently issuable shares 360 546 508 Effect of dilutive securities — Unvested non-participating shares 210 — 52 Diluted — Average shares outstanding 289,712 288,484 262,079 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.81 $ 1.44 $ 1.53 Diluted $ 1.79 $ 1.42 $ 1.52 (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 was previously 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 years ended December 31, 2019 and 2018 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, 2019 | |
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, 2017 $ (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 OCI before reclassifications — (2,460) (3,665) (6,125) Amounts reclassified from AOCI — (59) (1,544) (1,603) Net period OCI — (2,519) (5,209) (7,728) Balance at December 31, 2019 $ — $ 50,996 $ (64) $ 50,932 |
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, 2019, 2018 and 2017 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 2019 2018 2017 of Operations Gain (loss) on cash flow hedges: Interest rate contracts $ — $ 33 $ 3 Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection 59 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 59 2,984 95 Foreign currency translation: Foreign currency gain from sale of Ireland Portfolio 1,544 — — Gain on sale of investments and other assets, net Total reclassifications for the period $ 1,603 $ 3,017 $ 98 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 (amounts in thousands): December 31, 2019 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 1,436,194 $ — $ — $ 1,436,194 RMBS 189,576 — — 189,576 CMBS 37,360 — 12,352 25,008 Equity security 12,664 12,664 — — Domestic servicing rights 16,917 — — 16,917 Derivative assets 28,943 — 28,943 — VIE assets 62,187,175 — 62,187,175 Total $ 63,908,829 $ 12,664 $ 41,295 $ 63,854,870 Financial Liabilities: Derivative liabilities $ 8,740 $ — $ 8,740 $ — VIE liabilities 60,743,494 — 58,206,102 2,537,392 Total $ 60,752,234 $ — $ 58,214,842 $ 2,537,392 December 31, 2018 Total Level I Level II Level III Financial Assets: Loans under 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 |
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, 2019 and 2018 (amounts in thousands): Domestic Loans at Servicing VIE Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2018 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 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 71,337 — 505 (3,640) (1,250,935) 47,308 (1,135,425) OTTI — — — — — — — Net accretion — 9,945 — — — — 9,945 Included in OCI — (2,519) — — — — (2,519) Purchases / Originations 4,015,167 — 5,165 — — — 4,020,332 Sales (2,951,713) — (7,326) — — — (2,959,039) Issuances — — — — — (116,273) (116,273) Cash repayments / receipts (144,066) (26,929) (11,348) — — (16,093) (198,436) Transfers into Level III — — 5,350 — — (1,728,562) (1,723,212) Transfers out of Level III (225,813) — — — — 991,378 765,565 Consolidation of VIEs — — — — 10,368,817 (311,748) 10,057,069 Deconsolidation of VIEs — — 7,434 — (377,071) 38,044 (331,593) December 31, 2019 balance $ 1,436,194 $ 189,576 $ 25,008 $ 16,917 $ 62,187,175 $ (2,537,392) $ 61,317,478 Amount of total (losses) gains included in earnings attributable to assets still held at: December 31, 2018 $ (3,753) 10,398 (352) (10,202) (5,835,225) 1,022,887 $ (4,816,247) December 31, 2019 (4,459) 9,858 (666) (3,640) (1,250,935) 47,308 (1,202,534) |
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, 2019 December 31, 2018 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 $ 10,034,030 $ 10,086,372 $ 9,122,972 $ 9,178,709 HTM debt securities 570,638 568,727 644,149 643,948 Financial liabilities not carried at fair value: Secured financing agreements, CLO and secured borrowings on transferred loans $ 9,834,108 $ 9,826,511 $ 8,757,804 $ 8,662,548 Unsecured senior notes 1,928,622 2,022,283 1,998,831 1,945,160 |
Schedule of quantitative information for Level 3 Measurements for assets and liabilities measured at fair value on recurring basis | 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, 2019 Technique Input December 31, 2019 December 31, 2018 Loans under fair value option $ 1,436,194 Discounted cash flow Yield (b) 3.4% - 5.9% 4.6% - 6.1% Duration (c) 1.3 - 11.3 years 2.5 - 14.4 years RMBS 189,576 Discounted cash flow Constant prepayment rate (a) 3.1% - 24.9% 3.2% - 25.2% Constant default rate (b) 0.5% - 5.0% 1.1% - 5.5% Loss severity (b) 0% - 93% (e) 0% - 73% (e) Delinquency rate (c) 5% - 29% 4% - 31% Servicer advances (a) 27% - 85% 21% - 83% Annual coupon deterioration (b) 0% - 1.6% 0% - 1.4% Putback amount per projected total collateral loss (d) 0% - 28% 0% - 7% CMBS 25,008 Discounted cash flow Yield (b) 0% - 122.9% 0% - 473.5% Duration (c) 0 - 9.7 years 0 - 9.7 years Domestic servicing rights 16,917 Discounted cash flow Debt yield (a) 7.5% 7.75% Discount rate (b) 15% 15% Control migration (b) 0% - 80% 0% - 80% VIE assets 62,187,175 Discounted cash flow Yield (b) 0% - 690.7% 0% - 290.9% Duration (c) 0 - 19.2 years 0 - 20.4 years VIE liabilities (2,537,392) Discounted cash flow Yield (b) 0% - 690.7% 0% - 290.9% Duration (c) 0 - 12.7 years 0 - 13.7 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) 34% and 55% of the portfolio falls within a range of 45% - 80% as of December 31, 2019 and 2018, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of income tax provision | Our income tax provision consisted of the following for the years ended December 31, 2019, 2018 and 2017 (in thousands): For the year ended December 31, 2019 2018 2017 Current Federal $ 4,917 $ 10,508 $ 17,495 State 3,182 3,010 3,115 Foreign 977 293 8 Total current 9,076 13,811 20,618 Deferred Federal 3,869 1,189 10,815 State 287 330 89 Total deferred 4,156 1,519 10,904 Total income tax provision $ 13,232 $ 15,330 $ 31,522 |
Schedule of tax effects of temporary differences on net deferred tax assets | December 31, 2019 2018 Deferred tax asset, net Reserves and accruals $ 4,017 $ 5,161 Domestic intangible assets 8,185 14,022 Lease assets (1,950) — Lease liabilities 2,752 — Investment in unconsolidated entities (116) (1,842) Deferred income 19 134 Net operating and capital loss carryforwards 885 — Other U.S. temporary differences 228 702 Net deferred tax assets $ 14,020 $ 18,177 |
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, 2019, 2018 and 2017 (dollars in thousands): For the Year Ended December 31, 2019 2018 2017 Federal statutory tax rate $ 115,535 21.0 % $ 89,571 21.0 % $ 155,501 35.0 % REIT and other non-taxable income (106,301) (19.3) % (77,972) (18.3) % (135,830) (30.6) % State income taxes 3,034 0.5 % 3,038 0.7 % 3,091 0.7 % Federal benefit of state tax deduction (637) (0.1) % (638) (0.1) % (1,082) (0.2) % Changes in tax law — — % — — % 10,365 2.3 % Other 1,601 0.3 % 1,331 0.3 % (523) (0.1) % Effective tax rate $ 13,232 2.4 % $ 15,330 3.6 % $ 31,522 7.1 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies. | |
Schedule of lease costs and sublease income | For the Year Ended December 31, 2019 2018 2017 Operating lease costs $ 5,634 $ 4,962 $ 4,699 Short-term lease costs 115 210 96 Sublease income (1,613) (1,643) (1,500) Total lease cost $ 4,136 $ 3,529 $ 3,295 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheet as of December 31, 2019, is as follows (dollars in thousands): For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities—operating $ 5,215 December 31, 2019 Weighted-average remaining lease term 6.0 years Weighted-average discount rate 4.4 % |
Schedule of future minimum rental payments and sublease income related to existing corporate leases and subleases | Future maturity of operating lease liabilities: 2020 $ 6,163 2021 3,480 2022 1,272 2023 1,281 2024 6,206 Thereafter 1,002 Total 19,404 Less interest component (2,316) Operating lease liability $ 17,088 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Data 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, 2019 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 $ 610,316 $ 99,580 $ — $ 14,117 $ — $ 724,013 $ — $ 724,013 Interest income from investment securities 81,255 6,318 — 117,663 — 205,236 (128,607) 76,629 Servicing fees 423 — — 69,962 — 70,385 (16,089) 54,296 Rental income — — 287,094 50,872 — 337,966 — 337,966 Other revenues 1,038 751 409 1,317 26 3,541 (26) 3,515 Total revenues 693,032 106,649 287,503 253,931 26 1,341,141 (144,722) 1,196,419 Costs and expenses: Management fees 1,495 — — 72 117,404 118,971 161 119,132 Interest expense 222,118 62,836 76,838 33,621 113,964 509,377 (648) 508,729 General and administrative 29,481 18,260 6,232 87,115 13,681 154,769 343 155,112 Acquisition and investment pursuit costs 1,351 75 217 (587) — 1,056 — 1,056 Costs of rental operations 2,691 — 95,370 24,921 — 122,982 — 122,982 Depreciation and amortization 1,091 83 92,561 19,587 — 113,322 — 113,322 Loan loss provision, net 2,616 4,510 — — — 7,126 — 7,126 Other expense 307 — 1,693 365 — 2,365 — 2,365 Total costs and expenses 261,150 85,764 272,911 165,094 245,049 1,029,968 (144) 1,029,824 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 236,309 236,309 Change in fair value of servicing rights — — — (1,468) — (1,468) (2,172) (3,640) Change in fair value of investment securities, net (1,084) — — 89,206 — 88,122 (87,289) 833 Change in fair value of mortgage loans held-for-sale, net 10,462 — — 61,139 — 71,601 — 71,601 Earnings (loss) from unconsolidated entities 10,649 — (114,362) 4,166 — (99,547) (1,807) (101,354) Gain on sale of investments and other assets, net 4,619 3,041 119,746 60,622 — 188,028 — 188,028 (Loss) gain on derivative financial instruments, net (20,325) (3,349) (1,284) (7,414) 26,062 (6,310) — (6,310) Foreign currency gain (loss), net 17,342 205 37 (2) — 17,582 — 17,582 Loss on extinguishment of debt (857) (11,357) (4,745) (845) (1,466) (19,270) — (19,270) Other (loss) income, net — (50) (100) 16 (73) (207) — (207) Total other income (loss) 20,806 (11,510) (708) 205,420 24,523 238,531 145,041 383,572 Income (loss) before income taxes 452,688 9,375 13,884 294,257 (220,500) 549,704 463 550,167 Income tax (provision) benefit (4,818) 89 (393) (8,110) — (13,232) — (13,232) Net income (loss) 447,870 9,464 13,491 286,147 (220,500) 536,472 463 536,935 Net income attributable to non-controlling interests (392) — (21,630) (4,786) — (26,808) (463) (27,271) Net income (loss) attributable to Starwood Property Trust, Inc . $ 447,478 $ 9,464 $ (8,139) $ 281,361 $ (220,500) $ 509,664 $ — $ 509,664 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 1,256,396 (147,116) 1,109,280 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 provision, 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 provision, 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 consolidated balance sheet as of December 31, 2019 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 $ 26,278 $ 2,209 $ 30,123 $ 61,693 $ 356,864 $ 477,167 $ 1,221 $ 478,388 Restricted cash 36,135 41,967 7,171 10,370 — 95,643 — 95,643 Loans held-for-investment, net 9,187,332 1,397,448 — 1,294 — 10,586,074 — 10,586,074 Loans held-for-sale 605,384 119,528 — 159,238 — 884,150 — 884,150 Investment securities 992,974 45,153 — 1,177,148 — 2,215,275 (1,405,037) 810,238 Properties, net 26,834 — 2,029,024 210,582 — 2,266,440 — 2,266,440 Intangible assets — — 47,303 64,644 — 111,947 (26,247) 85,700 Investment in unconsolidated entities 46,921 25,862 — 32,183 — 104,966 (20,637) 84,329 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 14,718 7 3 7 14,208 28,943 — 28,943 Accrued interest receivable 45,996 3,134 133 2,388 13,242 64,893 (806) 64,087 Other assets 59,170 6,101 82,910 54,238 8,911 211,330 (7) 211,323 VIE assets, at fair value — — — — — — 62,187,175 62,187,175 Total Assets $ 11,041,742 $ 1,760,818 $ 2,196,667 $ 1,914,222 $ 393,225 $ 17,306,674 $ 60,735,662 $ 78,042,336 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 30,594 $ 6,443 $ 48,370 $ 73,021 $ 53,494 $ 211,922 $ 84 $ 212,006 Related-party payable — — — 5 40,920 40,925 — 40,925 Dividends payable — — — — 137,427 137,427 — 137,427 Derivative liabilities 7,698 750 — 292 — 8,740 — 8,740 Secured financing agreements, net 5,038,876 1,217,066 1,698,334 574,507 391,215 8,919,998 (13,950) 8,906,048 Collateralized loan obligations, net 928,060 — — — — 928,060 — 928,060 Unsecured senior notes, net — — — — 1,928,622 1,928,622 — 1,928,622 VIE liabilities, at fair value — — — — — — 60,743,494 60,743,494 Total Liabilities 6,005,228 1,224,259 1,746,704 647,825 2,551,678 12,175,694 60,729,628 72,905,322 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,874 2,874 — 2,874 Additional paid-in capital 1,522,360 529,668 208,650 (123,210) 2,995,064 5,132,532 — 5,132,532 Treasury stock — — — — (104,194) (104,194) — (104,194) Accumulated other comprehensive income (loss) 50,996 — — (64) — 50,932 — 50,932 Retained earnings (accumulated deficit) 3,463,158 6,891 5,431 1,194,998 (5,052,197) (381,719) — (381,719) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,036,514 536,559 214,081 1,071,724 (2,158,453) 4,700,425 — 4,700,425 Non-controlling interests in consolidated subsidiaries — — 235,882 194,673 — 430,555 6,034 436,589 Total Equity 5,036,514 536,559 449,963 1,266,397 (2,158,453) 5,130,980 6,034 5,137,014 Total Liabilities and Equity $ 11,041,742 $ 1,760,818 $ 2,196,667 $ 1,914,222 $ 393,225 $ 17,306,674 $ 60,735,662 $ 78,042,336 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 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 |
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 $ 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 provision, 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 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019: Revenues $ 310,480 $ 311,181 $ 288,330 $ 286,428 Net income 76,508 132,446 150,001 177,980 Net income attributable to Starwood Property Trust, Inc. 70,383 127,016 140,396 171,869 Earnings per share — Basic 0.25 0.45 0.50 0.61 Earnings per share — Diluted 0.25 0.45 0.49 0.60 2018: Revenues $ 260,587 $ 269,556 $ 285,719 $ 293,418 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 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
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 (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Properties held-for-sale | $ 0 | $ 0 | ||
Leases | ||||
Right-of-use asset | $ 12,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Usgaap:OtherAssetsMember | |||
Operating Lease, Liability | $ 12,000 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | ||
Variable Interest Entities | ||||
REO assets as a percent of consolidated VIE assets | 1.00% | |||
Loans as a percent of consolidated VIE assets | 99.00% | |||
Fair Value Measurements | ||||
Permitted reinvestment under static investment in VIEs | $ 0 | |||
Minimum | Forecast | ASU 2016-13 | ||||
Fair Value Measurements | ||||
Initial increase in allowance for credit losses | $ 30,000 | |||
Maximum | Forecast | ASU 2016-13 | ||||
Fair Value Measurements | ||||
Initial increase in allowance for credit losses | $ 40,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) $ / shares in Units, € in Millions, ft² in Millions | Dec. 23, 2019EUR (€) | Dec. 23, 2019USD ($) | Oct. 15, 2018USD ($)item | Sep. 19, 2018USD ($) | Sep. 25, 2017USD ($)ft²property | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)property | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)ft²propertyitemshares | Dec. 31, 2018USD ($)property$ / sharesshares | Dec. 31, 2017USD ($)property$ / sharesshares | Dec. 31, 2016USD ($)ft²itemproperty | Dec. 31, 2015USD ($)itemproperty | Dec. 31, 2018USD ($)property | Dec. 23, 2019USD ($) |
Acquisitions and Divestitures | ||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | € 507.6 | $ 17,639,000 | ||||||||||||||||||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | |||||||||||||||||||||
Non-controlling interest | $ 300,000 | |||||||||||||||||||||
Principal Amount | $ 1,950,000,000 | $ 2,027,969,000 | $ 1,950,000,000 | $ 2,027,969,000 | $ 2,027,969,000 | |||||||||||||||||
Number of properties sold | property | 16 | 6 | ||||||||||||||||||||
Gain on sale of property | 59,700,000 | $ 55,100,000 | $ 19,900,000 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Revenues | 286,428,000 | $ 288,330,000 | $ 311,181,000 | $ 310,480,000 | 293,418,000 | $ 285,719,000 | $ 269,556,000 | $ 260,587,000 | 1,196,419,000 | 1,109,280,000 | 879,888,000 | |||||||||||
Net income (loss) | 177,980,000 | $ 150,001,000 | $ 132,446,000 | $ 76,508,000 | 99,932,000 | $ 89,381,000 | $ 117,090,000 | $ 104,794,000 | 536,935,000 | 411,197,000 | 412,767,000 | |||||||||||
(Loss) gain on derivative financial instruments, net | (6,310,000) | 34,603,000 | (72,532,000) | |||||||||||||||||||
Goodwill | $ 259,846,000 | 259,846,000 | $ 259,846,000 | 259,846,000 | 259,846,000 | |||||||||||||||||
Pro forma revenue and net income | ||||||||||||||||||||||
Revenues | 1,182,892,000 | 966,636,000 | ||||||||||||||||||||
Net income attributable to STWD | $ 392,505,000 | $ 395,150,000 | ||||||||||||||||||||
Net income per share - Basic | $ / shares | $ 1.47 | $ 1.51 | ||||||||||||||||||||
Net income per share - Diluted | $ / shares | $ 1.44 | $ 1.50 | ||||||||||||||||||||
Ireland Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Accumulated depreciation | € | 67.5 | |||||||||||||||||||||
Basis in assets | € | 394.7 | |||||||||||||||||||||
Gain (Loss) on Disposition of Assets | 108 | $ 119,700,000 | ||||||||||||||||||||
Withhold Tax Reduction Of Purchase Price | € | 20.7 | |||||||||||||||||||||
Aggregate gross acquisition price | € | 530 | |||||||||||||||||||||
Infrastructure Lending Segment of GE Capital | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Purchase price | $ 147,100,000 | $ 2,000,000,000 | $ 2,158,553,000 | |||||||||||||||||||
Funded commitments | $ 2,100,000,000 | |||||||||||||||||||||
Number of additional loans acquired | item | 2 | |||||||||||||||||||||
Unfunded commitments | $ 466,300,000 | |||||||||||||||||||||
Percentage of floating rate | 97.00% | |||||||||||||||||||||
Principal Amount | $ 1,700,000,000 | |||||||||||||||||||||
Assets acquired: | ||||||||||||||||||||||
Loans held-for-investment | 1,649,630,000 | 1,649,630,000 | 1,649,630,000 | |||||||||||||||||||
Loans held-for-sale | 319,710,000 | 319,710,000 | 319,710,000 | |||||||||||||||||||
Investment securities | 65,060,000 | 65,060,000 | 65,060,000 | |||||||||||||||||||
Accrued interest receivable | 13,843,000 | 13,843,000 | 13,843,000 | |||||||||||||||||||
Total assets acquired | 2,048,243,000 | 2,048,243,000 | 2,048,243,000 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 8,817,000 | 8,817,000 | 8,817,000 | |||||||||||||||||||
Derivative liabilities | 282,000 | 282,000 | 282,000 | |||||||||||||||||||
Total liabilities assumed | 9,099,000 | 9,099,000 | 9,099,000 | |||||||||||||||||||
Net assets acquired | 2,039,144,000 | 2,039,144,000 | 2,039,144,000 | |||||||||||||||||||
Goodwill | $ 119,400,000 | 119,409,000 | $ 119,409,000 | 119,409,000 | ||||||||||||||||||
Infrastructure Lending Segment of GE Capital | MEXICO | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Percentage of floating rate | 12.00% | |||||||||||||||||||||
Infrastructure Lending Segment of GE Capital | UNITED KINGDOM | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Percentage of floating rate | 5.00% | 5.00% | ||||||||||||||||||||
Infrastructure Lending Segment of GE Capital | US | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Percentage of floating rate | 74.00% | |||||||||||||||||||||
Master Lease Mortgages | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Number of retail properties acquired | property | 20 | 16 | ||||||||||||||||||||
Number of industrial properties acquired | property | 3 | |||||||||||||||||||||
Purchase price | $ 553,300,000 | |||||||||||||||||||||
Acquisition-related costs | $ 3,700,000 | |||||||||||||||||||||
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 | 5.3 | 1.9 | ||||||||||||||||||||
Maximum borrowing capacity | $ 265,900,000 | |||||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Total liabilities assumed | $ 192,400,000 | $ 192,400,000 | ||||||||||||||||||||
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 | $ 235,400,000 | |||||||||||||||||||||
Gain on sale of property | $ 28,500,000 | |||||||||||||||||||||
Medical Office Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Area of property | ft² | 1.9 | |||||||||||||||||||||
Number of acquired properties closed | item | 34 | |||||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Total liabilities assumed | 590,900,000 | $ 590,900,000 | ||||||||||||||||||||
Woodstar Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Number of properties in portfolio investment | property | 32 | |||||||||||||||||||||
Number of acquired properties closed | item | 14 | 18 | ||||||||||||||||||||
Number of units acquired | item | 8,948 | |||||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Total liabilities assumed | $ 478,200,000 | $ 478,200,000 | ||||||||||||||||||||
Ireland Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Fair Value Hedge Assets | $ 16,600,000 | |||||||||||||||||||||
Number of properties sold | property | 4 | 0 | 1 | |||||||||||||||||||
Proceeds from sale of property | $ 3,900,000 | |||||||||||||||||||||
Ireland Portfolio | Ireland Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Third party debt | € | € 316.3 | |||||||||||||||||||||
REIS Equity Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Non-controlling interest | $ 300,000 | |||||||||||||||||||||
Assets acquired: | ||||||||||||||||||||||
Properties | $ 38,770,000 | 38,770,000 | ||||||||||||||||||||
Intangible assets | 11,955,000 | 11,955,000 | ||||||||||||||||||||
Other assets | 85,000 | 85,000 | ||||||||||||||||||||
Total assets acquired | 50,810,000 | 50,810,000 | ||||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 1,516,000 | 1,516,000 | ||||||||||||||||||||
Total liabilities assumed | 1,516,000 | 1,516,000 | ||||||||||||||||||||
Net assets acquired | 49,294,000 | 49,294,000 | ||||||||||||||||||||
Woodstar II Portfolio | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Purchase price | 156,200,000 | $ 408,900,000 | ||||||||||||||||||||
Contingent consideration | $ 10,800,000 | 29,200,000 | $ 29,200,000 | 10,800,000 | 29,200,000 | |||||||||||||||||
Maturity period | 10 years | 10 years | ||||||||||||||||||||
Amount issued | $ 116,700,000 | $ 116,700,000 | ||||||||||||||||||||
Interest rate (as a percent) | 3.81% | 3.82% | 3.82% | 3.81% | ||||||||||||||||||
Number of properties acquired | property | 19 | |||||||||||||||||||||
Percentage of occupied portfolio | 100.00% | |||||||||||||||||||||
Capitalized acquisition costs | 4,100,000 | $ 4,100,000 | 4,100,000 | |||||||||||||||||||
Principal Amount | 300,900,000 | $ 300,900,000 | 300,900,000 | |||||||||||||||||||
Number of properties in portfolio investment | property | 8 | 27 | 27 | |||||||||||||||||||
Initial aggregate purchase price | 438,100,000 | $ 438,100,000 | $ 438,100,000 | |||||||||||||||||||
Number of units acquired | property | 1,740 | 4,369 | 6,109 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Total liabilities assumed | $ 436,900,000 | $ 436,900,000 | ||||||||||||||||||||
Woodstar II Portfolio | Class A Units | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Shares issued | shares | 100,000 | 1,700,000 | ||||||||||||||||||||
Right to receive additional shares | shares | 1,900,000 | |||||||||||||||||||||
Woodstar II Portfolio | SPT Dolphin | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Aggregate gross acquisition price | $ 225,800,000 | $ 310,700,000 | ||||||||||||||||||||
Woodstar II Portfolio | SPT Dolphin | Class A Units | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Shares issued | shares | 10,200,000 | 7,403,731 | 10,183,505 | |||||||||||||||||||
Number of Shares Issued for contingent consideration | shares | 120,926 | 1,727,314 | ||||||||||||||||||||
Right to receive additional shares | shares | 1,910,563 | 1,411,642 | 1,910,563 | |||||||||||||||||||
Redemption of units | shares | 974,176 | 0 | ||||||||||||||||||||
Number of common stock per unit | 1 | 1 | ||||||||||||||||||||
Woodstar II Portfolio | Additional Mortgage Facilities Acquired | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Amount issued | $ 27,000,000 | $ 27,000,000 | $ 27,000,000 | |||||||||||||||||||
Interest rate (as a percent) | 3.06% | 3.06% | 3.06% | |||||||||||||||||||
Woodstar II Portfolio | Additional Mortgage Facilities Acquired | Weighted-average | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Maturity period | 27 years 6 months | |||||||||||||||||||||
Master Lease Portfolio, REO Portfolio, Medical Office Portfolio and Woodstar Portfolio | Disposed of by sale | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Number of properties sold | property | 0 | 0 | ||||||||||||||||||||
Non-Controlling Interests | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Gain on sale of property | $ 5,300,000 | $ 5,100,000 | $ 3,300,000 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Net income (loss) | $ 27,271,000 | $ 25,367,000 | $ 11,997,000 | |||||||||||||||||||
Non-Controlling Interests | Woodstar II Portfolio | SPT Dolphin | Class A Units | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Redemption of units | shares | 235,900,000 | 254,900,000 | ||||||||||||||||||||
Investing and Servicing Segment | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Payment to acquire investment property | $ 8,600,000 | $ 52,700,000 | ||||||||||||||||||||
Number of retail properties acquired | property | 3 | |||||||||||||||||||||
Number of industrial properties acquired | property | 3 | |||||||||||||||||||||
Purchase price | $ 227,300,000 | $ 227,300,000 | $ 227,300,000 | $ 227,300,000 | ||||||||||||||||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | |||||||||||||||||||||
Non-controlling interest | $ 300,000 | |||||||||||||||||||||
Number of real estate businesses acquired | property | 15 | 15 | 15 | 15 | ||||||||||||||||||
Number of properties in portfolio investment | property | 16 | |||||||||||||||||||||
Aggregate gross acquisition price | $ 8,800,000 | $ 53,100,000 | $ 48,700,000 | |||||||||||||||||||
Number of properties sold | property | 4 | 9 | 5 | |||||||||||||||||||
Proceeds from sale of property | $ 145,900,000 | $ 77,900,000 | $ 52,400,000 | |||||||||||||||||||
Gain on sale of property | 59,700,000 | 26,600,000 | 19,800,000 | |||||||||||||||||||
Liabilities assumed: | ||||||||||||||||||||||
Total liabilities assumed | 187,900,000 | 187,900,000 | ||||||||||||||||||||
Goodwill | $ 140,400,000 | $ 140,400,000 | 140,400,000 | 140,400,000 | $ 140,400,000 | |||||||||||||||||
Investing and Servicing Segment | Non-Controlling Interests | ||||||||||||||||||||||
Acquisitions and Divestitures | ||||||||||||||||||||||
Gain on sale of property | $ 5,300,000 | $ 5,100,000 | $ 3,300,000 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Determination of Goodwill (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Sep. 19, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Acquisitions and Divestitures | |||||
Goodwill | $ 259,846 | $ 259,846 | |||
Repayment of debt of consolidated VIEs | $ 373,155 | 410,453 | $ 137,208 | ||
Infrastructure Lending Segment of GE Capital | |||||
Acquisitions and Divestitures | |||||
Purchase price | $ 147,100 | $ 2,000,000 | 2,158,553 | ||
Fair value of net assets acquired | 2,039,144 | ||||
Goodwill | $ 119,400 | $ 119,409 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Restricted cash | ||
Cash restricted by lender | $ 40,818 | $ 175,659 |
Cash collateral for derivative financial instruments | 37,912 | 37,245 |
Funds held on behalf of borrowers and tenants | 11,903 | 12,838 |
Other restricted cash | 5,010 | 22,299 |
Restricted cash | $ 95,643 | $ 248,041 |
Loans - Held for Investment (De
Loans - Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments in loans | ||||
Total gross loans | $ 11,503,835 | $ 9,833,405 | ||
Loan loss allowance (loans held-for-investment) | (33,611) | (39,151) | $ (4,330) | $ (9,788) |
Carrying amount of commercial loans | 47,622 | |||
Carrying Value | 11,470,224 | 9,794,254 | 7,382,641 | $ 5,946,274 |
Carrying Value | 11,470,224 | 9,794,254 | ||
Total distributions received from residual profit participation | 0 | |||
Proceeds from borrowings | 10,167,339 | 9,412,715 | 6,273,600 | |
Payment of debt | 8,671,085 | 6,360,610 | $ 4,586,509 | |
Face Amount | 11,530,915 | 9,876,545 | ||
Loans with variable rates of interest | $ 9,427,947 | |||
Weighted average spread of loans (as a percent) | 4.20% | |||
Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 10,619,489 | 8,571,507 | ||
Face Amount | 10,661,865 | 8,610,457 | ||
Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 884,346 | 1,187,552 | ||
Loans held-for-sale, residential | ||||
Investments in loans | ||||
Total gross loans | 605,384 | 623,660 | ||
Face Amount | $ 587,144 | $ 609,571 | ||
Weighted Average Life | 3 years 10 months 24 days | 6 years 7 months 6 days | ||
Loans held-for-sale, residential | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.20% | 6.30% | ||
Loans held-for-sale, commercial | ||||
Investments in loans | ||||
Total gross loans | $ 159,238 | $ 94,117 | ||
Face Amount | $ 160,635 | $ 94,916 | ||
Weighted Average Life | 10 years | 6 years 2 months 12 days | ||
Loans held-for-sale, commercial | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 3.90% | 5.40% | ||
Loans Held For Sale Infrastructure | ||||
Investments in loans | ||||
Total gross loans | $ 119,724 | $ 469,775 | ||
Face Amount | $ 121,271 | $ 486,909 | ||
Weighted Average Life | 2 years 1 month 6 days | 3 months 18 days | ||
Loans Held For Sale Infrastructure | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 3.30% | 3.50% | ||
Loans transferred as secured borrowings | ||||
Investments in loans | ||||
Total gross loans | $ 74,346 | |||
Face Amount | $ 74,692 | |||
Weighted Average Life | 1 year 3 months 18 days | |||
Loans transferred as secured borrowings | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 7.10% | |||
First mortgage loan participation | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 7,928,026 | $ 6,607,117 | ||
Face Amount | $ 7,962,788 | $ 6,631,236 | ||
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) | 5.80% | 6.90% | ||
First priority infrastructure receivables | ||||
Investments in loans | ||||
Loans with variable rates of interest | $ 1,397,448 | |||
Weighted average spread of loans (as a percent) | 3.80% | |||
First priority infrastructure receivables | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 1,397,448 | $ 1,456,779 | ||
Face Amount | $ 1,416,164 | $ 1,465,828 | ||
Weighted Average Life | 4 years 10 months 24 days | 4 years 6 months | ||
First priority infrastructure receivables | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.60% | 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 | $ 75,724 | 52,778 | ||
Face Amount | $ 77,055 | $ 53,996 | ||
Weighted Average Life | 3 years 4 months 24 days | 3 years 8 months 12 days | ||
Subordinated mortgages | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.80% | 8.90% | ||
Mezzanine Loans | ||||
Investments in loans | ||||
Carrying Value | $ 967,000,000 | $ 1,000 | ||
Mezzanine Loans | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 484,164 | 393,832 | ||
Face Amount | $ 484,408 | $ 394,739 | ||
Weighted Average Life | 1 year 10 months 24 days | 2 years | ||
Mezzanine Loans | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 11.00% | 10.60% | ||
Residential loans, fair value option | ||||
Investments in loans | ||||
Reclassification to held for investment | $ 340,900 | |||
Residential loans, fair value option | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 671,572 | |||
Face Amount | $ 654,925 | |||
Weighted Average Life | 3 years 9 months 18 days | |||
Residential loans, fair value option | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.10% | |||
Other | ||||
Investments in loans | ||||
Total gross loans | $ 62,555 | $ 61,001 | ||
Face Amount | $ 66,525 | $ 64,658 | ||
Weighted Average Life | 1 year 7 months 6 days | 2 years 6 months | ||
Other | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.20% | 8.20% |
Loans - Variable Rate Loans Hel
Loans - Variable Rate Loans Held for Investment (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 9,427,947 |
Weighted average spread of loans (as a percent) | 4.20% |
Commercial loans | |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 8,030,499 |
Weighted average spread of loans (as a percent) | 4.20% |
First priority infrastructure receivables | |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 1,397,448 |
Weighted average spread of loans (as a percent) | 3.80% |
Loans - Ratings (Details)
Loans - Ratings (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Investments in loans | ||||
Total gross loans | $ 11,503,835 | $ 9,833,405 | ||
Total gross loans (as a percent) | 100.00% | 100.00% | ||
Allowance for impaired loans | $ 29,900 | $ 8,300 | ||
Impairment charges recorded | $ 38,200 | |||
Unpaid principal balance | 20,900 | |||
Unamortized discount | 3,600 | |||
Provision for impaired loans | 3,314 | 38,205 | ||
Average recorded investment | 172,800 | |||
Carrying amount of loans 90 days or more past due | 7,400 | |||
Unfunded commitment | 3,100 | |||
TDRs for which interest income was recognized | 0 | |||
New York City | ||||
Investments in loans | ||||
Allowance for impaired loans | 21,600 | |||
Greater Chicago | ||||
Investments in loans | ||||
Allowance for impaired loans | 8,300 | |||
Recorded investment | 12,200 | |||
Unpaid principal balance | 12,000 | |||
Provision for impaired loans | $ 8,300 | |||
Number of Subordinated Mortgages | item | 2 | |||
Montgomery, Alabama | ||||
Investments in loans | ||||
Allowance for impaired loans | $ 8,300 | |||
Recorded investment | $ 9,000 | |||
Orlando, Florida | ||||
Investments in loans | ||||
Recorded investment | $ 18,500 | |||
Unpaid principal balance | 21,900 | |||
Unamortized discount | 3,400 | |||
Provision for impaired loans | $ 0 | |||
Rating 1 | ||||
Investments in loans | ||||
Total gross loans | $ 24,053 | $ 30,305 | ||
Total gross loans (as a percent) | 0.20% | 0.30% | ||
Rating 1 | Maximum | ||||
Investments in loans | ||||
LTV (as a percent) | 65.00% | |||
Rating 2 | ||||
Investments in loans | ||||
Total gross loans | $ 4,376,306 | $ 3,549,546 | ||
Total gross loans (as a percent) | 38.00% | 36.10% | ||
Rating 2 | Maximum | ||||
Investments in loans | ||||
LTV (as a percent) | 70.00% | |||
Rating 3 | ||||
Investments in loans | ||||
Total gross loans | $ 3,899,160 | $ 3,334,111 | ||
Total gross loans (as a percent) | 33.90% | 33.90% | ||
Rating 3 | Maximum | ||||
Investments in loans | ||||
LTV (as a percent) | 80.00% | |||
Rating 4 | ||||
Investments in loans | ||||
Total gross loans | $ 40,436 | $ 63,094 | ||
Total gross loans (as a percent) | 0.40% | 0.60% | ||
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 | $ 59,116 | |||
Total gross loans (as a percent) | 0.50% | |||
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 | $ 1,548,846 | $ 1,668,797 | ||
Total gross loans (as a percent) | 13.50% | 17.00% | ||
Total | ||||
Investments in loans | ||||
Total gross loans | $ 9,947,917 | $ 8,645,853 | ||
First Mortgages, excluding Cost Recovery Loans | New York City | ||||
Investments in loans | ||||
Recorded investment | 131,600 | |||
Unpaid principal balance | 104,200 | |||
Provision for impaired loans | 21,600 | |||
Interest income accrued on loans | 38,400 | |||
Unsecured promissory note | New York City | ||||
Investments in loans | ||||
Allowance for impaired loans | 0 | |||
Recorded investment | 7,800 | |||
Unpaid principal balance | 8,900 | |||
First Mortgage Loan and Mezzanine Loan | ||||
Investments in loans | ||||
Recorded investment | 93,600 | |||
Other | ||||
Investments in loans | ||||
Total gross loans | 62,555 | 61,001 | ||
Infrastructure Loans | ||||
Investments in loans | ||||
Allowance for impaired loans | 3,300 | |||
Recorded investment | 29,200 | |||
Impairment charges recorded | 3,300 | |||
Unpaid principal balance | 36,200 | |||
Non-accretable difference | 7,000 | |||
Carrying amount of loans in default | 25,900 | |||
Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 10,619,489 | 8,571,507 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 1 | ||||
Investments in loans | ||||
Total gross loans | 503 | 6,538 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 2 | ||||
Investments in loans | ||||
Total gross loans | 4,186,776 | 3,356,342 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 3 | ||||
Investments in loans | ||||
Total gross loans | 3,509,601 | 2,987,296 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 4 | ||||
Investments in loans | ||||
Total gross loans | 40,436 | 63,094 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Rating 5 | ||||
Investments in loans | ||||
Total gross loans | 59,116 | |||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | N/A | ||||
Investments in loans | ||||
Total gross loans | 131,594 | 193,847 | ||
Total loans held-for-investment | First Mortgages, excluding Cost Recovery Loans | Total | ||||
Investments in loans | ||||
Total gross loans | 7,928,026 | 6,607,117 | ||
Total loans held-for-investment | First Priority Infrastructure Loans | N/A | ||||
Investments in loans | ||||
Total gross loans | 1,397,448 | 1,456,779 | ||
Total loans held-for-investment | First Priority Infrastructure Loans | Total | ||||
Investments in loans | ||||
Total gross loans | 1,397,448 | 1,456,779 | ||
Total loans held-for-investment | Subordinated mortgages | ||||
Investments in loans | ||||
Total gross loans | 75,724 | 52,778 | ||
Total loans held-for-investment | Subordinated mortgages | Rating 2 | ||||
Investments in loans | ||||
Total gross loans | 37,980 | 7,392 | ||
Total loans held-for-investment | Subordinated mortgages | Rating 3 | ||||
Investments in loans | ||||
Total gross loans | 25,767 | 33,410 | ||
Total loans held-for-investment | Subordinated mortgages | N/A | ||||
Investments in loans | ||||
Total gross loans | 11,977 | 11,976 | ||
Total loans held-for-investment | Subordinated mortgages | Total | ||||
Investments in loans | ||||
Total gross loans | 75,724 | 52,778 | ||
Total loans held-for-investment | Mezzanine Loans | ||||
Investments in loans | ||||
Total gross loans | 484,164 | 393,832 | ||
Total loans held-for-investment | Mezzanine Loans | Rating 2 | ||||
Investments in loans | ||||
Total gross loans | 120,372 | 111,466 | ||
Total loans held-for-investment | Mezzanine Loans | Rating 3 | ||||
Investments in loans | ||||
Total gross loans | 363,792 | 282,366 | ||
Total loans held-for-investment | Mezzanine Loans | Total | ||||
Investments in loans | ||||
Total gross loans | 484,164 | 393,832 | ||
Total loans held-for-investment | Residential loans, fair value option | ||||
Investments in loans | ||||
Total gross loans | $ 671,572 | |||
Total gross loans (as a percent) | 5.80% | |||
Total loans held-for-investment | Other | Rating 1 | ||||
Investments in loans | ||||
Total gross loans | $ 23,550 | 23,767 | ||
Total loans held-for-investment | Other | Rating 2 | ||||
Investments in loans | ||||
Total gross loans | 31,178 | |||
Total loans held-for-investment | Other | Rating 3 | ||||
Investments in loans | ||||
Total gross loans | 31,039 | |||
Total loans held-for-investment | Other | N/A | ||||
Investments in loans | ||||
Total gross loans | 7,827 | 6,195 | ||
Total loans held-for-investment | Other | Total | ||||
Investments in loans | ||||
Total gross loans | 62,555 | 61,001 | ||
Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 884,346 | $ 1,187,552 | ||
Total gross loans (as a percent) | 7.70% | 12.10% | ||
Loans held-for-sale, residential | ||||
Investments in loans | ||||
Total gross loans | $ 605,384 | $ 623,660 | ||
Loans held-for-sale, commercial | ||||
Investments in loans | ||||
Total gross loans | 159,238 | 94,117 | ||
Loans Held For Sale Infrastructure | ||||
Investments in loans | ||||
Total gross loans | $ 119,724 | 469,775 | ||
Loans transferred as secured borrowings | ||||
Investments in loans | ||||
Total gross loans | 74,346 | |||
Loans transferred as secured borrowings | Rating 2 | ||||
Investments in loans | ||||
Total gross loans | 74,346 | |||
Loans transferred as secured borrowings | Total | ||||
Investments in loans | ||||
Total gross loans | $ 74,346 |
Loans - Activity in Portfolio (
Loans - Activity in Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Activity in allowance for loan losses | |||
Allowance for loan losses at the beginning of the period | $ 39,151 | $ 4,330 | $ 9,788 |
Provision for (reversal of) loan losses | (3,812) | 3,384 | 5,458 |
Provision for impaired loans | 3,314 | 38,205 | |
Charge-offs | (12,666) | ||
Allowance for loan losses at the end of the period | 33,611 | 39,151 | 4,330 |
Recorded investment in loans related to the allowance for loan loss | 291,768 | 275,112 | 170,941 |
Activity in loan portfolio | |||
Balance at the beginning of the period | 9,794,254 | 7,382,641 | 5,946,274 |
Acquisitions/origination/additional funding | 9,094,714 | 6,723,144 | 5,500,539 |
Acquisition of Infrastructure Lending Portfolio | 1,969,340 | ||
Capitalized Interest | 110,632 | 63,047 | 74,339 |
Basis of loans sold | (4,311,390) | (3,082,347) | (1,634,717) |
Loan maturities/principal repayments | (3,304,838) | (3,272,666) | (2,658,522) |
Discount accretion/premium amortization | 35,387 | 38,099 | 39,084 |
Changes in fair value | 71,601 | 40,522 | 66,987 |
Unrealized foreign currency translation (loss) gain | 40,155 | (32,341) | 42,356 |
Loan loss provision, net | (7,126) | (34,821) | 5,458 |
Loan foreclosure | (27,303) | ||
Transfer to/from other asset classifications | (25,862) | (364) | 843 |
Balance at the end of the period | $ 11,470,224 | $ 9,794,254 | $ 7,382,641 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | |||||
Investment securities | $ 810,238 | $ 906,468 | |||
Purchases | $ 98,258 | $ 492,400 | $ 98,394 | ||
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||||
Sales | 7,326 | 16,427 | 11,579 | ||
Principal collections | 205,660 | 382,924 | 232,793 | ||
VIE eliminations | |||||
Investment Securities | |||||
Purchases | (351,220) | (385,463) | (113,978) | ||
Sales | (184,540) | (102,474) | (25,605) | ||
Principal collections | (45,642) | (95,030) | (100,115) | ||
Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 2,215,275 | 2,110,508 | |||
Fair value option | VIE eliminations | |||||
Investment Securities | |||||
Investment securities | (1,405,037) | (1,204,040) | |||
Held-to-maturity | |||||
Investment Securities | |||||
Purchases | 91,162 | 463,810 | 79,163 | ||
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||||
Principal collections | 167,383 | 327,207 | 182,919 | ||
Held-to-maturity | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 570,638 | 644,149 | |||
RMBS | Available-for-sale | |||||
Investment Securities | |||||
Purchases | 7,433 | ||||
Sales | 13,264 | ||||
Principal collections | 26,929 | 34,763 | 40,635 | ||
Purchase Amortized Cost | 148,385 | 165,461 | |||
Credit OTTI | (9,805) | (9,897) | |||
Recorded Amortized Cost | 138,580 | 155,564 | |||
Non-Credit OTTI | (314) | (31) | |||
Gross Unrealized Gains | 51,310 | 53,546 | |||
Net Fair Value Adjustment | 50,996 | 53,515 | |||
Fair Value | 189,576 | 209,079 | |||
Portion of securities with variable rate | $ 160,900 | $ 177,400 | |||
Portion of securities with variable rate (as a percent) | 84.90% | 84.90% | |||
Principal balance | $ 278,853 | $ 309,497 | |||
Accretable yield | (54,779) | (55,712) | (55,712) | (56,108) | (54,779) |
Non-accretable difference | (84,165) | (99,154) | |||
Total discount | (140,273) | (153,933) | |||
Amortized cost | 138,580 | 155,564 | |||
Credit deteriorated RMBS | 263,700 | 290,800 | |||
Accretable yield related to credit deteriorated RMBS | $ 50,300 | $ 49,500 | |||
Changes to accretable yield | |||||
Balance at the beginning of the period | 54,779 | 55,712 | |||
Accretion of discount | (9,945) | (10,932) | |||
Sales | (9,032) | ||||
Transfer to/from non-accretable difference | 11,274 | 19,031 | |||
Balance at the end of the period | 56,108 | 54,779 | 55,712 | ||
Changes to non accretable difference | |||||
Balance at the beginning of the period | 99,154 | 121,867 | |||
Principal write-downs, net | (3,715) | (3,682) | |||
Transfer to/from non-accretable difference | (11,274) | (19,031) | |||
Balance at the end of the period | 84,165 | 99,154 | 121,867 | ||
Cost of third party management | 1,500 | 1,800 | 1,900 | ||
Proceeds from sale of securities | $ 0 | 13,300 | 0 | ||
Realized gain on sale of securities | $ 3,500 | ||||
RMBS | Available-for-sale | LIBOR | |||||
Investment Securities | |||||
Variable rate, weighted average spread (as a percent) | 1.24% | 1.22% | |||
RMBS | Available-for-sale | One-month LIBOR | |||||
Investment Securities | |||||
Effective variable rate basis (as a percent) | 1.763% | 2.503% | |||
RMBS | Available-for-sale | B | |||||
Investment Securities | |||||
Weighted Average Coupon (as a percent) | 3.70% | ||||
WAL (Years) | 6 years | ||||
RMBS | Available-for-sale | CCC- | |||||
Investment Securities | |||||
Weighted Average Coupon (as a percent) | 3.10% | ||||
WAL (Years) | 5 years 7 months 6 days | ||||
RMBS | Available-for-sale | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | $ 189,576 | $ 209,079 | |||
RMBS | Fair value option | |||||
Investment Securities | |||||
Purchases | $ 120,103 | $ 90,982 | |||
Sales | 41,501 | ||||
Principal collections | 16,500 | 1,439 | |||
Portion of securities with variable rate | 0 | ||||
RMBS | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 147,034 | 87,879 | |||
CMBS | |||||
Investment Securities | |||||
Amount not rated | 186,600 | 8,400 | |||
CMBS | Fair value option | |||||
Investment Securities | |||||
Purchases | 238,213 | 323,071 | 125,776 | ||
Sales | 150,365 | 105,637 | 37,184 | ||
Principal collections | $ 40,490 | $ 114,545 | $ 109,354 | ||
Portion of securities with variable rate | 118,200 | ||||
CMBS | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 1,295,363 | 1,157,508 | |||
Equity security | Fair value option | Before consolidation of securitization VIEs | |||||
Investment Securities | |||||
Investment securities | 12,664 | 11,893 | |||
Infrastructure bonds | |||||
Investment Securities | |||||
Principal balance | 32,800 | 34,200 | |||
Non-accretable difference | (13,000) | ||||
Amortized cost | $ 19,800 | $ 21,200 |
Investment Securities - AFS and
Investment Securities - AFS and Fair Value Option (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
CMBS/RMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | $ 1,400,000 | |
RMBS | Available-for-sale | ||
Estimated Fair Value | ||
Securities with a loss less than 12 months | $ 2,148 | |
Securities with a loss greater than 12 months | 1,380 | |
Unrealized Losses | ||
Securities with a loss less than 12 months | $ (31) | |
Securities with a loss greater than 12 months | $ (314) | |
Number of securities with unrealized loss position | security | 1 | 1 |
Portion of securities with variable rate | $ 160,900 | $ 177,400 |
RMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 147,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 87,400 | |
Portion of securities with variable rate | 0 | |
CMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 1,300,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 3,000,000 | |
Portion of securities with variable rate | 118,200 | |
VIE eliminations | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs eliminated against VIE liabilities | $ 37,400 |
Investment Securities - HTM (De
Investment Securities - HTM (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | $ 570,638 | $ 644,149 |
Gross Unrealized Holdings Gains | 2,094 | 3,316 |
Gross Unrealized Holdings Losses | (4,005) | (3,517) |
Fair Value | 568,727 | 643,948 |
HTM preferred equity interests | ||
Less than one year | 289,622 | |
One to three years | 240,881 | |
Three to five years | 353 | |
Thereafter | 39,782 | |
Total | 570,638 | 644,149 |
CMBS | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 383,473 | 408,556 |
Gross Unrealized Holdings Gains | 946 | 2,435 |
Gross Unrealized Holdings Losses | (3,001) | (3,349) |
Fair Value | 381,418 | 407,642 |
HTM preferred equity interests | ||
Less than one year | 284,251 | |
One to three years | 99,222 | |
Total | 383,473 | 408,556 |
Preferred interests | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 142,012 | 174,825 |
Gross Unrealized Holdings Gains | 1,148 | 703 |
Gross Unrealized Holdings Losses | (353) | |
Fair Value | 142,807 | 175,528 |
HTM preferred equity interests | ||
One to three years | 141,659 | |
Three to five years | 353 | |
Total | 142,012 | 174,825 |
Infrastructure bonds | ||
HTM Securities | ||
Net Carrying Amount (Amortized Cost) | 45,153 | 60,768 |
Gross Unrealized Holdings Gains | 178 | |
Gross Unrealized Holdings Losses | (651) | (168) |
Fair Value | 44,502 | 60,778 |
Accretable yield | 0 | |
HTM preferred equity interests | ||
Less than one year | 5,371 | |
Thereafter | 39,782 | |
Total | $ 45,153 | $ 60,768 |
Investment Securities - SEREF (
Investment Securities - SEREF (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2019 | Dec. 31, 2012 | Dec. 31, 2018 | |
Residential Real Estate | ||||
Fair value of the investment | $ 26,746 | $ 25,671 | ||
Ownership percentage | 2.00% | |||
SEREF | ||||
Residential Real Estate | ||||
Number of shares acquired | 9,140,000 | 9,140,000 | ||
Fair value of the investment | $ 12,700 | $ 11,900 | ||
Ownership percentage | 2.00% |
Properties (Details)
Properties (Details) $ in Thousands, ft² in Millions | Sep. 25, 2017ft²property | Dec. 31, 2017property | Dec. 31, 2019USD ($)ft²propertyitem | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | Dec. 31, 2016ft²item | Dec. 31, 2015item | Dec. 31, 2018USD ($)property |
Properties | ||||||||
Number of properties sold | property | 16 | 6 | ||||||
Proceeds from sale of operating properties | $ 313,300 | $ 56,400 | ||||||
Gain on sale of property | $ 59,700 | $ 55,100 | 19,900 | |||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | |||||||
Amount of non-controlling interest already held by a purchaser of a property | $ 300 | |||||||
Summary of properties | ||||||||
Properties, cost | 2,490,630 | 2,972,803 | $ 2,972,803 | |||||
Less: accumulated depreciation | (224,190) | (187,913) | (187,913) | |||||
Properties, net | 2,266,440 | 2,784,890 | 2,784,890 | |||||
Future rental payments due from tenants under existing non-cancellable operating leases | ||||||||
2020 | 177,516 | |||||||
2021 | 95,524 | |||||||
2022 | 89,602 | |||||||
2023 | 79,177 | |||||||
2024 | 71,271 | |||||||
Thereafter | 688,437 | |||||||
Total | 1,201,527 | |||||||
Non-Controlling Interests | ||||||||
Properties | ||||||||
Gain on sale of property | 5,300 | 5,100 | $ 3,300 | |||||
Property Segment | ||||||||
Summary of properties | ||||||||
Land and land improvements | 484,397 | 648,972 | 648,972 | |||||
Buildings and building improvements | 1,687,756 | 1,980,283 | 1,980,283 | |||||
Furniture & fixtures | $ 52,567 | $ 46,048 | 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 | 16 | |||||||
Total gross properties and lease intangibles | $ 277,800 | |||||||
Total liabilities assumed | $ 187,900 | |||||||
Number of retail properties acquired | property | 3 | |||||||
Number of equity interests in unconsolidated commercial real estate properties | property | 1 | |||||||
Number of industrial properties acquired | property | 3 | |||||||
Number of properties sold | property | 4 | 9 | 5 | |||||
Gain on sale of property | $ 59,700 | $ 26,600 | $ 19,800 | |||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | |||||||
Amount of non-controlling interest already held by a purchaser of a property | $ 300 | |||||||
Summary of properties | ||||||||
Land and land improvements | 54,052 | 82,332 | 82,332 | |||||
Buildings and building improvements | 182,048 | 213,010 | 213,010 | |||||
Furniture & fixtures | $ 2,139 | $ 2,158 | $ 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 | $ 5,300 | $ 5,100 | $ 3,300 | |||||
Commercial and Residential Lending Segment | ||||||||
Summary of properties | ||||||||
Land and land improvements | 11,386 | |||||||
Buildings and building improvements | $ 16,285 | |||||||
Commercial and Residential Lending Segment | Minimum | ||||||||
Summary of properties | ||||||||
Land improvements, useful life | 0 years | |||||||
Building and building improvements, useful life | 10 years | |||||||
Commercial and Residential Lending Segment | Maximum | ||||||||
Summary of properties | ||||||||
Land improvements, useful life | 7 years | |||||||
Building and building improvements, useful life | 23 years | |||||||
Ireland Portfolio | ||||||||
Properties | ||||||||
Number of properties sold | property | 4 | 0 | 1 | |||||
Proceeds from sale of operating properties | $ 407,200 | |||||||
Woodstar Portfolio | ||||||||
Properties | ||||||||
Number of properties in portfolio investment | property | 32 | |||||||
Total gross properties and lease intangibles | $ 629,500 | |||||||
Total liabilities assumed | $ 478,200 | |||||||
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 | 8 | 27 | 27 | |||||
Total gross properties and lease intangibles | $ 605,500 | |||||||
Total liabilities assumed | 436,900 | |||||||
Number of units acquired | property | 1,740 | 4,369 | 6,109 | |||||
Percentage of occupied portfolio | 100.00% | |||||||
Medical Office Portfolio | ||||||||
Properties | ||||||||
Area of property | ft² | 1.9 | |||||||
Total gross properties and lease intangibles | 759,900 | |||||||
Total liabilities assumed | 590,900 | |||||||
Number of acquired properties closed | item | 34 | |||||||
Master Lease Mortgages | ||||||||
Properties | ||||||||
Total gross properties and lease intangibles | 343,800 | |||||||
Total liabilities assumed | $ 192,400 | |||||||
Number of retail properties acquired | property | 20 | 16 | ||||||
Number of industrial properties acquired | property | 3 | |||||||
Number of square feet of properties | ft² | 5.3 | 1.9 | ||||||
Term of master lease agreements | 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 | |||||||
Number of properties sold | property | 4 | |||||||
Gain on sale of property | $ 28,500 | |||||||
REIS Equity Portfolio | ||||||||
Properties | ||||||||
Proceeds from sale of operating properties | $ 145,900 | |||||||
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) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2017USD ($) | Oct. 31, 2014USD ($) | |
Investment in Unconsolidated Entities | |||||||
Equity method, Carrying value | $ 57,583 | $ 146,094 | |||||
Fair value of the investment | 26,746 | 25,671 | |||||
Investment in unconsolidated entities | 84,329 | 171,765 | |||||
Capital distribution | $ 18,127 | $ 21,461 | $ 14,252 | ||||
Retail Fund | |||||||
Investment in Unconsolidated Entities | |||||||
Equity method, Participation / Ownership % | 33.00% | 33.00% | |||||
Equity method, Carrying value | $ 114,362 | $ 150,000 | |||||
Investment in unconsolidated entities | $ 15,500 | ||||||
Carrying amount | $ 0 | ||||||
Number of regional shopping malls | item | 4 | ||||||
Decrease in investment | $ 44,900 | ||||||
Capital distribution | $ 2,100 | ||||||
Impairment charge | $ 71,900 | ||||||
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 | $ 9,473 | $ 9,372 | |||||
Percentage of equity sold | 88.00% | ||||||
Equity interest in a natural gas power plant | |||||||
Investment in Unconsolidated Entities | |||||||
Equity method, Participation / Ownership % | 10.00% | 10.00% | 10.00% | ||||
Equity method, Carrying value | $ 25,862 | ||||||
Equity interest in a natural gas power plant | Infrastructure Loans | |||||||
Investment in Unconsolidated Entities | |||||||
Past due loan amount | $ 36,200 | ||||||
Carrying amount | $ 25,900 | ||||||
Time lag for reporting financial information | 3 months | ||||||
Equity interests in commercial real estate | |||||||
Investment in Unconsolidated Entities | |||||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | |||||
Equity method, Carrying value | $ 1,907 | $ 6,294 | |||||
Cash proceeds | $ 66,000 | ||||||
Income on sale of investments | $ 53,900 | ||||||
Equity interest in a residential mortgage originator | |||||||
Investment in Unconsolidated Entities | |||||||
Equity method, Carrying value | 12,002 | 9,082 | |||||
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 | 4,500 | 2,000 | |||||
Various - Equity method | |||||||
Investment in Unconsolidated Entities | |||||||
Equity method, Carrying value | $ 8,339 | $ 6,984 | |||||
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 % | 4.00% | 4.00% | |||||
Equity method, Carrying value | $ 6,207 | ||||||
Capital distribution | $ 8,400 | ||||||
Investment funds which own equity in a loan servicer and other real estate assets | |||||||
Investment in Unconsolidated Entities | |||||||
Fair value of the investment | $ 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 | |||||||
Fair value of the investment | $ 17,521 | $ 10,239 | |||||
Various | Minimum | |||||||
Investment in Unconsolidated Entities | |||||||
Cost method, Ownership % | 0.00% | 0.00% | |||||
Various | Maximum | |||||||
Investment in Unconsolidated Entities | |||||||
Cost method, Ownership % | 2.00% | 2.00% |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Apr. 19, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets | ||||
Goodwill | $ 259,846 | $ 259,846 | ||
Summary of Intangible Assets | ||||
Gross Carrying Value | 176,428 | 255,672 | ||
Accumulated Amortization | (90,728) | (110,639) | ||
Net Carrying Value | 85,700 | 145,033 | $ 183,092 | |
In-place lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 135,293 | 198,220 | ||
Accumulated Amortization | (84,383) | (100,873) | ||
Net Carrying Value | 50,910 | 97,347 | 122,465 | |
Favorable lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 24,218 | 36,895 | ||
Accumulated Amortization | (6,345) | (9,766) | ||
Net Carrying Value | 17,873 | 27,129 | 29,868 | |
Domestic Servicing Rights | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 16,917 | 20,557 | ||
Net Carrying Value | 16,917 | 20,557 | $ 30,759 | |
Domestic Servicing Rights | Before consolidation of securitization VIEs | ||||
Intangible Assets | ||||
Servicing rights intangibles | 43,200 | 44,600 | ||
Domestic Servicing Rights | VIE eliminations | ||||
Intangible Assets | ||||
Servicing rights intangibles | 26,200 | 24,100 | ||
Infrastructure Lending Segment | ||||
Intangible Assets | ||||
Goodwill | $ 119,400 | 119,400 | ||
Amortization period (in years) | 15 years | |||
Investing and Servicing Segment | ||||
Intangible Assets | ||||
Goodwill | $ 140,400 | $ 140,400 | ||
Amortization period (in years) | 15 years | |||
Expected tax deductible expenses for goodwill | $ 149,900 |
Goodwill and Intangibles - Acti
Goodwill and Intangibles - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Summary of activity within intangible assets | |||
Balance as of beginning of period | $ 145,033 | $ 183,092 | |
Amortization | (22,553) | (43,876) | |
Sales | (5,221) | (2,827) | |
Foreign exchange loss | 1,027 | 1,614 | |
Impairment | (1,244) | (361) | |
Changes in fair value due to changes in inputs and assumptions | (3,640) | (10,202) | |
Balance as of end of period | 85,700 | 145,033 | |
Unfavorable lease liability | 2,300 | 2,900 | |
Future rental payments due to us from tenants under existing non-cancellable operating leases | |||
2020 | 11,699 | ||
2021 | 9,674 | ||
2022 | 7,892 | ||
2023 | 6,136 | ||
2024 | 4,742 | ||
Thereafter | 28,640 | ||
Total | 68,783 | ||
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 properties | 10,792 | ||
REIS Equity Portfolio | |||
Summary of activity within intangible assets | |||
Acquisition of properties | $ 277 | 10,029 | |
Ireland Portfolio | |||
Summary of activity within intangible assets | |||
Sales | (25,925) | ||
LNR | |||
Summary of activity within intangible assets | |||
Unfavorable lease liability | 2,800 | 4,700 | $ 15,300 |
Amortization period of unfavorable lease liability | 1 year 6 months | ||
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 | 97,347 | 122,465 | |
Amortization | (19,297) | (39,830) | |
Sales | (5,208) | (1,791) | |
Foreign exchange loss | 806 | 1,270 | |
Impairment | (1,132) | (361) | |
Balance as of end of period | 50,910 | 97,347 | |
In-place lease | Woodstar II Portfolio | |||
Summary of activity within intangible assets | |||
Acquisition of properties | 10,792 | ||
In-place lease | REIS Equity Portfolio | |||
Summary of activity within intangible assets | |||
Acquisition of properties | 277 | 7,342 | |
In-place lease | Ireland Portfolio | |||
Summary of activity within intangible assets | |||
Sales | (20,271) | ||
Favorable lease | |||
Summary of activity within intangible assets | |||
Balance as of beginning of period | 27,129 | 29,868 | |
Amortization | (3,256) | (4,046) | |
Sales | (13) | (1,036) | |
Foreign exchange loss | 221 | 344 | |
Impairment | (112) | ||
Balance as of end of period | 17,873 | 27,129 | |
Favorable lease | REIS Equity Portfolio | |||
Summary of activity within intangible assets | |||
Acquisition of properties | 2,687 | ||
Favorable lease | Ireland Portfolio | |||
Summary of activity within intangible assets | |||
Sales | (5,654) | ||
Domestic Servicing Rights | |||
Summary of activity within intangible assets | |||
Balance as of beginning of period | 20,557 | 30,759 | |
Changes in fair value due to changes in inputs and assumptions | (3,640) | (10,202) | |
Balance as of end of period | $ 16,917 | $ 20,557 |
Secured Borrowings (Details)
Secured Borrowings (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($) | Oct. 31, 2019USD ($)Optionitem | Jul. 31, 2019USD ($)Option | Apr. 30, 2019item | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 1.50% | ||||||||||
Increase in spread in each of the second and third years of the facility | 0.25% | ||||||||||
Principal Amount | $ 1,950,000 | $ 1,950,000 | $ 2,027,969 | ||||||||
Carrying Value | 8,906,048 | 8,906,048 | 8,683,565 | ||||||||
Loss on extinguishment of debt | $ 1,500 | (19,270) | (5,808) | $ (5,915) | |||||||
Purchased by investors | 928,060 | 928,060 | |||||||||
Long-term Debt | 1,928,622 | 1,928,622 | 1,998,831 | ||||||||
Payment of debt | 8,671,085 | 6,360,610 | $ 4,586,509 | ||||||||
Revolving credit facility | |||||||||||
Secured Financing Agreements | |||||||||||
Equity interests in certain subsidiaries used to secure facilities | 3,100 | ||||||||||
Maximum borrowing capacity | $ 120,000 | $ 100,000 | $ 100,000 | $ 120,000 | |||||||
Maturity period | 5 years | ||||||||||
Revolving credit facility | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 3.00% | ||||||||||
Interest rate (as a percent) | 3.00% | 3.00% | |||||||||
Lender 7 Secured Financing | |||||||||||
Secured Financing Agreements | |||||||||||
Number of extension options | item | 2 | ||||||||||
Extended term / option | 1 year | ||||||||||
Woodstar I Portfolio | |||||||||||
Secured Financing Agreements | |||||||||||
Interest rate (as a percent) | 4.79% | ||||||||||
Maximum Facility Size | $ 84,500 | ||||||||||
Maturity period | 6 years | ||||||||||
Payment of debt | $ 9,200 | ||||||||||
Infrastructure Loans Repurchase Facility | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum Facility Size | $ 500,000 | ||||||||||
Maturity period | 1 year | ||||||||||
Extended term / option | 1 year | ||||||||||
Infrastructure Loans Repurchase Facility | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 1.75% | ||||||||||
Infrastructure Loans Repurchase Facility | Revolving credit facility | Minimum | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.00% | ||||||||||
Infrastructure Loans Repurchase Facility | Revolving credit facility | Maximum | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.85% | ||||||||||
Residential Loans repurchase facility | |||||||||||
Secured Financing Agreements | |||||||||||
Increase in available borrowings | $ 200,000 | ||||||||||
Medical Office Portfolio | |||||||||||
Secured Financing Agreements | |||||||||||
Loss on extinguishment of debt | $ 4,700 | ||||||||||
Maturity period | 2 years | ||||||||||
Number of extension options | item | 3 | ||||||||||
Extended term / option | 1 year | ||||||||||
Long-term Debt | $ 494,300 | ||||||||||
Medical Office Portfolio | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Interest rate (as a percent) | 3.30% | ||||||||||
Medical Office Portfolio | LIBOR | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.07% | ||||||||||
Revolving Credit Agreement | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum Facility Size | $ 300,000 | $ 300,000 | |||||||||
Maximum facility size subject to certain conditions | 650,000 | $ 650,000 | |||||||||
Property Mortgages - Fixed rate | |||||||||||
Secured Financing Agreements | |||||||||||
Maturity period | 9 years 9 months 18 days | ||||||||||
FHLB | |||||||||||
Secured Financing Agreements | |||||||||||
Carrying Value | $ 438,500 | $ 438,500 | |||||||||
Maximum borrowing capacity | $ 500,000 | $ 2,000,000 | |||||||||
FHLB | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Interest rate (as a percent) | 2.01% | 2.01% | |||||||||
FHLB | LIBOR | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 0.28% | ||||||||||
Collateralized Loan Obligation | |||||||||||
Secured Financing Agreements | |||||||||||
Principal Amount | $ 86,600 | ||||||||||
Principal amount of notes | 1,100,000 | ||||||||||
Purchased by investors | 936,400 | ||||||||||
Liquidation preference | $ 77,000 | ||||||||||
Additional Contribution to CLO | $ 88,400 | ||||||||||
Term loan facility | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum borrowing capacity | $ 399,000 | $ 400,000 | $ 399,000 | ||||||||
Maturity period | 7 years | ||||||||||
Term loan facility | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.50% | 2.50% | |||||||||
Commercial Loans | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum Facility Size | 8,900,000 | $ 8,900,000 | |||||||||
Carrying Value | $ 874,900 | $ 874,900 | |||||||||
Commercial Loans | LIBOR | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Interest rate (as a percent) | 1.90% | 1.90% | |||||||||
Commercial Loans | Repurchase facility | |||||||||||
Secured Financing Agreements | |||||||||||
Aggregate upsize | $ 2,800,000 | ||||||||||
Infrastructure Loans | Revolving credit facility | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum borrowing capacity | $ 500,000 | $ 500,000 | |||||||||
Maturity period | 3 years | 3 years | |||||||||
Number of extension options | 2 | 2 | |||||||||
Number of extension options at Company's discretion | Option | 1 | ||||||||||
Extended term / option | 1 year | 1 year | |||||||||
Maximum term of the facility | 8 years | ||||||||||
Extension term | 5 years | ||||||||||
Infrastructure Loans | Revolving credit facility | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 1.75% | ||||||||||
Mezzanine [Member] | Revolving credit facility | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum borrowing capacity | $ 600,000 | ||||||||||
CMBS/RMBS | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 3.49% | ||||||||||
Carrying Value | $ 184,700 | $ 184,700 | |||||||||
Increase in available borrowings | $ 300,000 | $ 150,000 | |||||||||
CMBS/RMBS | LIBOR | Weighted-average | |||||||||||
Secured Financing Agreements | |||||||||||
Interest rate (as a percent) | 1.58% | 1.58% | |||||||||
CMBS/RMBS | Certain Facilities | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum Facility Size | $ 295,000 | $ 295,000 | |||||||||
Rolling maturity period | 11 months | ||||||||||
Maturity period | 12 months | ||||||||||
Secured financing agreements | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 12,051,127 | $ 12,051,127 | |||||||||
Maximum Facility Size | 18,006,088 | 18,006,088 | |||||||||
Principal Amount | 9,000,125 | 9,000,125 | 8,761,624 | ||||||||
Unamortized net discount | (8,347) | (8,347) | (963) | ||||||||
Unamortized deferred financing costs | (85,730) | (85,730) | (77,096) | ||||||||
Carrying Value | 8,906,048 | 8,906,048 | 8,683,565 | ||||||||
Secured financing agreements | Other Secured Financing | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 5,365,987 | 5,365,987 | |||||||||
Maximum Facility Size | 6,852,042 | 6,852,042 | |||||||||
Principal Amount | 4,390,668 | 4,390,668 | 4,471,874 | ||||||||
Secured financing agreements | Revolving Credit Agreement | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 542,281 | 542,281 | |||||||||
Maximum Facility Size | 650,000 | 650,000 | |||||||||
Principal Amount | 198,955 | $ 198,955 | |||||||||
Secured financing agreements | Revolving Credit Agreement | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.25% | ||||||||||
Secured financing agreements | Infrastructure Acquisition Facility | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 754,443 | $ 754,443 | |||||||||
Maximum Facility Size | 771,534 | 771,534 | |||||||||
Principal Amount | 603,642 | 603,642 | 1,551,148 | ||||||||
Secured financing agreements | Infrastructure Revolvers | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 524,197 | 524,197 | |||||||||
Maximum Facility Size | 1,000,000 | 1,000,000 | |||||||||
Principal Amount | 428,206 | $ 428,206 | |||||||||
Secured financing agreements | Infrastructure Revolvers | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.12% | ||||||||||
Secured financing agreements | Property Mortgages - Fixed rate | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 1,499,356 | $ 1,499,356 | |||||||||
Maximum Facility Size | 1,196,698 | 1,196,698 | |||||||||
Principal Amount | 1,196,492 | $ 1,196,492 | 1,475,382 | ||||||||
Secured financing agreements | Property Mortgages - Fixed rate | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 3.94% | ||||||||||
Secured financing agreements | Property Mortgages - Variable rate | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 783,460 | $ 783,460 | |||||||||
Maximum Facility Size | 714,810 | 714,810 | |||||||||
Principal Amount | 696,503 | $ 696,503 | 645,344 | ||||||||
Secured financing agreements | Property Mortgages - Variable rate | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.49% | ||||||||||
Secured financing agreements | Term Loan and Revolver | |||||||||||
Secured Financing Agreements | |||||||||||
Maximum Facility Size | 519,000 | $ 519,000 | |||||||||
Principal Amount | 399,000 | 399,000 | 300,000 | ||||||||
Secured financing agreements | FHLB | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 1,262,250 | 1,262,250 | |||||||||
Maximum Facility Size | 2,000,000 | 2,000,000 | |||||||||
Principal Amount | 867,870 | 867,870 | 500,000 | ||||||||
Secured financing agreements | Repurchase Agreements | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 6,685,140 | 6,685,140 | |||||||||
Maximum Facility Size | 11,154,046 | 11,154,046 | |||||||||
Principal Amount | 4,609,457 | 4,609,457 | 4,289,750 | ||||||||
Secured financing agreements | Commercial Loans | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 5,327,761 | 5,327,761 | |||||||||
Maximum Facility Size | 9,066,480 | 9,066,480 | |||||||||
Principal Amount | 3,640,620 | 3,640,620 | 3,598,311 | ||||||||
Secured financing agreements | Residential Loans | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 14,704 | 14,704 | |||||||||
Maximum Facility Size | 400,000 | 400,000 | |||||||||
Principal Amount | 11,835 | $ 11,835 | |||||||||
Secured financing agreements | Residential Loans | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.10% | ||||||||||
Secured financing agreements | Infrastructure Loans | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 227,463 | $ 227,463 | |||||||||
Maximum Facility Size | 500,000 | 500,000 | |||||||||
Principal Amount | 188,198 | $ 188,198 | |||||||||
Secured financing agreements | Infrastructure Loans | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 1.75% | ||||||||||
Secured financing agreements | Conduit Loans | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 109,864 | $ 109,864 | |||||||||
Maximum Facility Size | 350,000 | 350,000 | |||||||||
Principal Amount | 86,575 | $ 86,575 | 35,034 | ||||||||
Secured financing agreements | Conduit Loans | LIBOR | |||||||||||
Secured Financing Agreements | |||||||||||
Pricing margin (as a percent) | 2.10% | ||||||||||
Secured financing agreements | CMBS/RMBS | |||||||||||
Secured Financing Agreements | |||||||||||
Pledged Asset Carrying Value | 1,005,348 | $ 1,005,348 | |||||||||
Maximum Facility Size | 837,566 | 837,566 | |||||||||
Principal Amount | $ 682,229 | $ 682,229 | $ 656,405 |
Secured Borrowings - Principal
Secured Borrowings - Principal Repayments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Repayment of secured financings | |||
Amortization of deferred financing costs | $ 34,300 | $ 27,000 | $ 19,500 |
CLO | |||
Repayment of secured financings | |||
Thereafter | 936,375 | ||
Total | 936,375 | ||
Secured financing agreements | |||
Repayment of secured financings | |||
2020 | 1,045,135 | ||
2021 | 1,483,385 | ||
2022 | 1,563,145 | ||
2023 | 1,762,095 | ||
2024 | 1,349,547 | ||
Thereafter | 2,733,193 | ||
Total | 9,936,500 | ||
Repurchase Agreements | |||
Repayment of secured financings | |||
2020 | 480,249 | ||
2021 | 625,956 | ||
2022 | 1,010,970 | ||
2023 | 1,056,812 | ||
2024 | 1,065,312 | ||
Thereafter | 370,158 | ||
Total | 4,609,457 | ||
Other Secured Financing | |||
Repayment of secured financings | |||
2020 | 564,886 | ||
2021 | 857,429 | ||
2022 | 552,175 | ||
2023 | 705,283 | ||
2024 | 284,235 | ||
Thereafter | 1,426,660 | ||
Total | $ 4,390,668 |
Secured Borrowings - Repurchase
Secured Borrowings - Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Secured Financing Agreements | ||
Principal Amount | $ 1,950,000 | $ 2,027,969 |
Secured financing agreements | ||
Secured Financing Agreements | ||
Principal Amount | $ 9,000,125 | $ 8,761,624 |
Repurchase Agreements | ||
Secured Financing Agreements | ||
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks | 78.00% | |
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale | 22.00% |
Secured Borrowings- Collaterali
Secured Borrowings- Collateralized Loan Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2019 | |
Summary of CLO | ||||
Collateralized loan obligations, net | $ 928,060 | |||
Spread (as a percent) | 1.50% | |||
Amortization of deferred financing costs | $ 34,300 | $ 27,000 | $ 19,500 | |
Deferred financing costs, net of amortization | $ 5,624 | $ 8,078 | ||
Collateral assets | ||||
Summary of CLO | ||||
Count | 20 | |||
Amount issued | $ 1,073,504 | |||
Collateralized loan obligations, net | $ 1,073,504 | |||
Financing | ||||
Summary of CLO | ||||
Count | 1 | |||
Amount issued | $ 936,375 | |||
Collateralized loan obligations, net | 928,060 | |||
Collateralized Loan Obligation | ||||
Summary of CLO | ||||
Amount issued | $ 1,100,000 | |||
Collateralized loan obligations, net | $ 936,400 | |||
Deferred financing costs, net of amortization | 9,200 | |||
Unamortized issuance costs | $ 8,300 | |||
Collateralized Loan Obligation | Collateral assets | ||||
Summary of CLO | ||||
Loans financed by the CLO (as a percent) | 9.00% | |||
Fixed weighted average interest | 6.84% | |||
Collateralized Loan Obligation | LIBOR | Collateral assets | ||||
Summary of CLO | ||||
Spread (as a percent) | 3.34% | |||
Collateralized Loan Obligation | LIBOR | Financing | ||||
Summary of CLO | ||||
Spread (as a percent) | 1.65% |
Unsecured Secured Notes (Detail
Unsecured Secured Notes (Details) $ / shares in Units, shares in Thousands | Jan. 29, 2018USD ($) | Dec. 04, 2017USD ($) | Dec. 16, 2016USD ($) | Jul. 31, 2019USD ($) | Dec. 31, 2019USD ($)item$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Mar. 29, 2017USD ($) | Oct. 08, 2014USD ($) | Jul. 03, 2013USD ($) | Feb. 15, 2013USD ($) |
Unsecured Senior Notes | |||||||||||
Principal Amount | $ 1,950,000,000 | $ 2,027,969,000 | |||||||||
Unamortized deferred financing costs | (5,624,000) | (8,078,000) | |||||||||
Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes | 3,755,000 | 3,755,000 | |||||||||
Carrying amount of debt components | 1,928,622,000 | 1,998,831,000 | |||||||||
Interest expense | 508,729,000 | 408,188,000 | $ 295,666,000 | ||||||||
Loss on extinguishment of debt | $ (1,500,000) | 19,270,000 | $ 5,808,000 | $ 5,915,000 | |||||||
Conversion Spread Value - Shares | shares | 91 | 1,899 | |||||||||
Principal amount of notes, basis for conversion | $ 1,000 | ||||||||||
Closing share price (in dollars per share) | $ / shares | $ 24.86 | $ 19.71 | $ 21.35 | ||||||||
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 | ||||||||||
2018 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.55% | ||||||||||
Amount issued | $ 600,000,000 | ||||||||||
Conversion Spread Value - Shares | shares | 541 | ||||||||||
2019 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate (as a percent) | 4.00% | ||||||||||
Principal Amount | $ 77,969,000 | ||||||||||
Amount issued | 263,400,000 | $ 460,000,000 | |||||||||
Debt conversion original amount | $ 296,800,000 | ||||||||||
Shares issued to settle redemption | shares | 3,600 | 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 | ||||||||||
Value of shares issued to settle redemption | $ 78,000,000 | $ 263,400,000 | |||||||||
Conversion Spread Value - Shares | shares | 91 | 1,358 | |||||||||
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 | 1 year 1 month 6 days | ||||||||||
Principal Amount | $ 500,000,000 | $ 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 | 2 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 | 3 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 | ||||||||||
Closing share price (in dollars per share) | $ / shares | $ 24.86 | ||||||||||
If-converted value | $ 239,900,000 | ||||||||||
Amount by which if-converted value of the Notes are less than principal amount | $ 10,100,000 | ||||||||||
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 | 5 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 | (3,610,000) | (4,644,000) | |||||||||
Interest expense | $ 12,354,000 | 25,148,000 | |||||||||
Loss on extinguishment of debt | 2,099,000 | ||||||||||
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 | |||||||||||
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 | ||||||||||
Convertible Senior Notes | 2019 Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Interest expense | $ 12,300,000 | 28,900,000 | $ 72,200,000 | ||||||||
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 | ||||||||||
Amount of debt repurchased | 0 | ||||||||||
Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Unamortized discount | $ (12,144,000) | $ (16,416,000) |
Loan Securitization_Sale Acti_3
Loan Securitization/Sale Activities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Loan Transfers Accounted for as Secured Borrowings | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | $ 6,900 | $ 1,300 | |
Interest Rate Swap Guarantees | |||
Loan Transfers Accounted for as Secured Borrowings | |||
Cash consideration | 3,100 | ||
Investing and Servicing Segment | |||
Loan Transfer Activities | |||
Face Amount | 1,781,981 | 1,517,599 | $ 1,517,368 |
Proceeds | 1,845,890 | 1,563,433 | 1,582,050 |
Repayment of purchase agreements | $ 1,289,129 | $ 1,147,316 | 1,152,938 |
Commercial and Residential Lending Segment | |||
Loan Transfers Accounted for as Secured Borrowings | |||
Number of VIEs that were consolidated | item | 3 | 2 | |
Number of VIEs into which the commercial loans were sold | item | 2 | ||
Face Amount | 75,000 | ||
Proceeds | 74,098 | ||
Net gains (losses) on the sale of loan qualifying for sales treatment | $ 4,600 | ||
Commercial and Residential Lending Segment | Loans held-for-sale, commercial | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 751,210 | $ 840,400 | 55,470 |
Proceeds | 748,045 | 835,849 | $ 52,609 |
Commercial and Residential Lending Segment | Loans held-for-sale, residential | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 1,282,527 | 660,865 | |
Proceeds | 1,331,856 | 683,556 | |
Infrastructure Lending Segment | |||
Loan Transfer Activities | |||
Face Amount | 404,100 | $ 0 | |
Proceeds | 393,300 | ||
Loan Transfers Accounted for as Secured Borrowings | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | 3,100 | ||
Decrease in fair value within (loss) gain on derivative financial instruments | $ 2,700 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) $ in Thousands | Dec. 31, 2019USD ($)item |
Derivatives | |
Number of contracts | 328 |
Foreign exchange contracts | EUR | Short | |
Derivatives | |
Number of contracts | 168 |
Aggregate notional amount | $ | $ 199,183 |
Foreign exchange contracts | AUD | Short | |
Derivatives | |
Number of contracts | 4 |
Aggregate notional amount | $ | $ 25,850 |
Foreign exchange contracts | GBP | Short | |
Derivatives | |
Number of contracts | 93 |
Aggregate notional amount | $ | $ 444,236 |
Interest rate swaps - Paying fixed rates | USD | |
Derivatives | |
Number of contracts | 37 |
Aggregate notional amount | $ | $ 1,299,466 |
Interest rate swaps - Receiving fixed rates | USD | |
Derivatives | |
Number of contracts | 2 |
Aggregate notional amount | $ | $ 970,000 |
Interest Rate Swap Guarantees | GBP | |
Derivatives | |
Number of contracts | 1 |
Aggregate notional amount | $ | $ 9,390 |
Interest Rate Swap Guarantees | USD | |
Derivatives | |
Number of contracts | 6 |
Aggregate notional amount | $ | $ 394,671 |
Interest rate caps | USD | |
Derivatives | |
Number of contracts | 12 |
Aggregate notional amount | $ | $ 742,299 |
Credit spread instrument | USD | |
Derivatives | |
Number of contracts | 5 |
Aggregate notional amount | $ | $ 89,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 28,943 | $ 52,691 |
Fair Value of Derivatives in a Liability Position | 8,740 | 15,415 |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 14,385 | 30,791 |
Fair Value of Derivatives in a Liability Position | 14,457 | |
Interest Rate Swap Guarantees | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in a Liability Position | 614 | 396 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 14,558 | 21,346 |
Fair Value of Derivatives in a Liability Position | 7,834 | 562 |
Credit spread instrument | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 554 | |
Fair Value of Derivatives in a Liability Position | $ 292 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives | |||
(Loss) gain on derivative financial instruments, net | $ (6,310) | $ 34,603 | $ (72,532) |
Interest rate swaps | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | (10,516) | (1,593) | (5,165) |
Interest rate swap guarantees | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | (3,350) | (114) | |
Foreign exchange contracts | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | 8,801 | 36,040 | (65,645) |
Credit spread instrument | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | $ (1,245) | 270 | (1,722) |
Cash flow hedges | Interest rate swaps | Derivatives designated as hedging instruments | |||
Derivatives | |||
Gain (Loss) Recognized in OCI (effective portion) | 8 | 54 | |
Gain (Loss) Reclassified from AOCI into Income (effective portion) | $ 33 | $ 3 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position | $ 28,943 | $ 52,691 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,618,197 | 4,305,165 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 4,618,197 | 4,305,165 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 4,614,769 | 4,291,158 |
Cash Collateral Pledged | 292 | 8,658 |
Net Amount | 3,136 | 5,349 |
Derivatives | ||
Assets | ||
Gross Amounts of Recognized Assets | 28,943 | 52,691 |
Net Amounts of Assets Presented in the Statement of Financial Position | 28,943 | 52,691 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 5,312 | 1,408 |
Cash Collateral Received | 14,208 | |
Net Amount | 9,423 | 51,283 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 8,740 | 15,415 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 8,740 | 15,415 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 5,312 | 1,408 |
Cash Collateral Pledged | 292 | 8,658 |
Net Amount | 3,136 | 5,349 |
Repurchase Agreements | ||
Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,609,457 | 4,289,750 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 4,609,457 | 4,289,750 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | $ 4,609,457 | $ 4,289,750 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated CLO (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Total Assets | $ 78,042,336 | $ 68,262,453 |
Liabilities | ||
Total Liabilities | 72,905,322 | $ 63,362,264 |
Collateralized Loan Obligation | ||
Assets: | ||
Loans held-for-investment, net | 1,073,504 | |
Accrued interest receivable | 3,129 | |
Other assets | 26,496 | |
Total Assets | 1,103,129 | |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 1,362 | |
Collateralized loan obligations, net | 928,060 | |
Total Liabilities | $ 929,422 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) |
Variable interest entities | ||
Total Assets | $ 78,042,336 | $ 68,262,453 |
Total Liabilities | 72,905,322 | 63,362,264 |
Debt obligations to beneficial interest holders, unpaid principal balances | 1,950,000 | 2,027,969 |
Interest in VIE | $ 84,329 | 171,765 |
Not primary beneficiary | ||
Variable interest entities | ||
Number of CDO structures currently in default | item | 4 | |
Maximum risk of loss related to VIEs, on fair value basis | $ 37,400 | |
Not primary beneficiary | ASU 2015-02 | ||
Variable interest entities | ||
Interest in VIE | 21,200 | |
Not primary beneficiary | Securitization SPEs | ||
Variable interest entities | ||
Debt obligations to beneficial interest holders, unpaid principal balances | 6,100,000 | |
Primary beneficiary | ||
Variable interest entities | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | $ 60,743,494 | $ 52,195,042 |
Equity Method Investment, Ownership Percentage | 51.00% | |
Primary beneficiary | ASU 2015-02 | ||
Variable interest entities | ||
Total Assets | $ 1,100,000 | |
Total Liabilities | 491,800 | |
Primary beneficiary | CMBS Venture Holdings | ||
Variable interest entities | ||
Total Assets | 347,200 | |
Total Liabilities | 400 | |
Primary beneficiary | SPT Dolphin | ASU 2015-02 | ||
Variable interest entities | ||
Total Assets | 684,100 | |
Total Liabilities | $ 444,400 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019shares | Dec. 31, 2018USD ($) | Apr. 30, 2018shares | May 31, 2017USD ($) | Mar. 31, 2017shares | Jun. 30, 2016GBP (£) | May 31, 2015shares | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Termination Fee | ||||||||||||
Granted (in shares) | shares | 1,720,236 | |||||||||||
Total fair value of shares vested | $ 33,200 | $ 18,300 | $ 18,300 | |||||||||
Share-based compensation expense, before tax | $ 46,237 | 43,458 | 39,223 | |||||||||
Ownership percentage | 2.00% | |||||||||||
General and administrative: | ||||||||||||
Termination Fee | ||||||||||||
Share-based compensation expense, before tax | $ 15,900 | 10,185 | 7,728 | |||||||||
Starwood Property Trust, Inc. Manager Equity Plan | ||||||||||||
Termination Fee | ||||||||||||
Granted (in shares) | shares | 1,200,000 | |||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | ||||||||||||
Termination Fee | ||||||||||||
Granted (in shares) | shares | 1,200,000 | 775,000 | 1,000,000 | 675,000 | ||||||||
Award vesting period | 3 years | |||||||||||
Share-based compensation expense, before tax | $ 20,200 | 12,600 | 10,400 | |||||||||
Co-origination of loan with SEREF and private funds, London | ||||||||||||
Termination Fee | ||||||||||||
Loans funded by the reporting entity | $ 21,300 | £ 60 | ||||||||||
Manager | ||||||||||||
Related-Party Transactions | ||||||||||||
Base management fee as a percentage of stock holders' equity | 1.50% | |||||||||||
Base management fee incurred | $ 77,000 | 73,200 | 67,800 | |||||||||
Base management fee payable | 19,200 | $ 19,300 | 19,200 | |||||||||
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 | $ 20,200 | 41,400 | 42,100 | |||||||||
Incentive fees payable | 21,800 | 18,100 | 21,800 | |||||||||
Executive compensation and other reimbursable expenses | 7,700 | 7,700 | $ 6,400 | |||||||||
Executive compensation and other reimbursable expense payable | $ 3,000 | $ 3,500 | $ 3,000 | |||||||||
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 | |||||||||||
Notice period for termination of management agreement with cause | 30 days | |||||||||||
Manager | Restricted stock units | ||||||||||||
Termination Fee | ||||||||||||
Granted (in shares) | shares | 182,861 | 252,375 | 138,264 | |||||||||
Grant date fair value | $ 4,100 | $ 5,300 | $ 3,100 | |||||||||
Share-based compensation expense, before tax | 4,100 | 2,900 | 2,700 | |||||||||
Affiliates of Manager | ||||||||||||
Termination Fee | ||||||||||||
Purchase price | $ 50,000 | |||||||||||
Investing and Servicing Segment | ||||||||||||
Termination Fee | ||||||||||||
Purchase price | 227,300 | 227,300 | $ 227,300 | $ 227,300 | ||||||||
Infrastructure Lending Segment | Manager | General and administrative: | ||||||||||||
Termination Fee | ||||||||||||
Cash payment | 0 | 1,300 | 0 | |||||||||
CMBS | Investing and Servicing Segment | REO Portfolio | ||||||||||||
Termination Fee | ||||||||||||
Purchase price | $ 8,800 | $ 28,000 | $ 31,300 |
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 ($) | Nov. 30, 2019EUR (€) | Sep. 30, 2019EUR (€) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($)Plant | Dec. 31, 2018USD ($)property | 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 | Oct. 31, 2014USD ($)item | Jul. 31, 2014GBP (£)item | Apr. 30, 2013USD ($)item | Dec. 31, 2012USD ($)shares | Oct. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2012USD ($)shares | Dec. 31, 2019EUR (€)itemproperty | Dec. 31, 2019USD ($)itemproperty |
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 9,094,714 | $ 6,723,144 | $ 5,500,539 | |||||||||||||||||||||||||||||
Spread on interest rate basis (as a percent) | 4.20% | 4.20% | ||||||||||||||||||||||||||||||
Purchase price of notes | $ 5,473,399 | 4,428,891 | 3,234,987 | |||||||||||||||||||||||||||||
Ownership percentage | 2.00% | |||||||||||||||||||||||||||||||
Equity method, Carrying value | $ 146,094 | 146,094 | $ 57,583 | |||||||||||||||||||||||||||||
Distribution of capital from unconsolidated entities | $ 18,127 | 21,461 | 14,252 | |||||||||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") | 267 | 180 | ||||||||||||||||||||||||||||||
Earnings (loss) from unconsolidated entities | (101,354) | 10,540 | 30,505 | |||||||||||||||||||||||||||||
Interest in VIE | 171,765 | 171,765 | $ 84,329 | |||||||||||||||||||||||||||||
Contribution | $ 183,520 | 13,407 | 106 | |||||||||||||||||||||||||||||
CMBS | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Payments to acquire security | $ 84,100 | $ 9,700 | ||||||||||||||||||||||||||||||
Number of regional malls by which investment is secured | building | 5 | |||||||||||||||||||||||||||||||
Purchase of first priority infrastructure term loan participation | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 16,000 | $ 5,000 | $ 60,000 | |||||||||||||||||||||||||||||
First priority infrastructure term loan | $ 1,000,000 | |||||||||||||||||||||||||||||||
Upsize to term loan | $ 300,000,000 | |||||||||||||||||||||||||||||||
Number of domestic natural gas power plants | Plant | 2 | |||||||||||||||||||||||||||||||
Origination of loan to refinance the debt of a commercial real estate partnership | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 22,500 | |||||||||||||||||||||||||||||||
Ownership percentage | 50.00% | |||||||||||||||||||||||||||||||
Co-origination of loan with SEREF and private funds, London | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | 62,500 | £ 75,000 | ||||||||||||||||||||||||||||||
Number of properties | property | 3 | |||||||||||||||||||||||||||||||
Loans funded by the reporting entity | 21,300 | £ 60,000 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Number of stories in the housing development | item | 18 | |||||||||||||||||||||||||||||||
Number of private residential and affordable housing units | item | 366 | |||||||||||||||||||||||||||||||
Loans funded by the reporting entity | £ | £ 86,750 | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
Development of Grade A office building and convention center | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 58.9 | |||||||||||||||||||||||||||||||
SEREF | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | 14.7 | |||||||||||||||||||||||||||||||
First priority infrastructure term loan | € | € 15 | |||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||
SEREF | Development of Grade A office building and convention center | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 39 | € 73.6 | ||||||||||||||||||||||||||||||
Retail Fund | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Equity method, Carrying value | 114,362 | $ 150,000 | 114,362 | |||||||||||||||||||||||||||||
Distribution of capital from unconsolidated entities | 2,100 | |||||||||||||||||||||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Gross Reductions | $ 47,200 | |||||||||||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") | 71,900 | |||||||||||||||||||||||||||||||
Number of regional shopping malls | item | 4 | 4 | 4 | |||||||||||||||||||||||||||||
Earnings (loss) from unconsolidated entities | 114,400 | 3,700 | 27,700 | |||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 33.00% | |||||||||||||||||||||||||||||||
Interest in VIE | $ 15,500 | |||||||||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | |||||||||||||||||||||||||||||||
Investing and Servicing Segment | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Purchase price | 227,300 | 227,300 | $ 227,300 | $ 227,300 | ||||||||||||||||||||||||||||
Investing and Servicing Segment | Co-origination of loan with SEREF and private funds, London | CMBS | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Total commitments | £ 77,000 | $ 4,500 | £ 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 | $ 8,600 | ||||||||||||||||||||||||||||
Purchase price | 8,800 | $ 28,000 | 31,300 | |||||||||||||||||||||||||||||
REIS Equity Portfolio | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Net real estate assets | 50,810 | |||||||||||||||||||||||||||||||
Fund IX | CMBS | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Payments to acquire security | $ 58,600 | |||||||||||||||||||||||||||||||
Number of properties | property | 85 | |||||||||||||||||||||||||||||||
Fund IX | Joint venture | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | |||||||||||||||||||||||||||||||
SEREF | Development of Grade A office building and convention center | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
First priority infrastructure term loan | € | € 192 | |||||||||||||||||||||||||||||||
Highmark Residential | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Number of properties under management | property | 10 | 10 | 11 | 11 | ||||||||||||||||||||||||||||
Payments to related party | 1,600 | $ 100 | ||||||||||||||||||||||||||||||
Highmark Residential | SEREF | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Number of properties under management | property | 21 | 21 | ||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||
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 | $ 1,300 | 2,000 | $ 1,400 | |||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||
Loans held-for-sale, residential | Residential mortgage originator | ||||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 2,000 | $ 353,000 | $ 135,600 |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-Controlling Interests (Details) - USD ($) | Nov. 08, 2019 | Aug. 07, 2019 | May 08, 2019 | Feb. 28, 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 | Dec. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2019 | Mar. 29, 2017 | Jan. 31, 2016 | May 31, 2014 |
Stockholders' Equity | ||||||||||||||||||||||
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 | |||||||
Shares issued under ATM Agreement | 0 | 0 | 0 | |||||||||||||||||||
Authorized amount of share repurchases | $ 250,000,000 | $ 500,000,000 | ||||||||||||||||||||
Number of shares that may be issued under the DRIP Plan | 11,000,000 | |||||||||||||||||||||
Value of shares that may be issued under the ATM Agreement | $ 500,000,000 | |||||||||||||||||||||
Period for repurchase of common stock | 1 year | |||||||||||||||||||||
Common stock repurchased (in shares) | 573,255 | |||||||||||||||||||||
Repurchase of common stock | $ 12,090,000 | |||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 84,329,000 | $ 84,329,000 | 171,765,000 | |||||||||||||||||||
Net income attributable to non-controlling interests | 27,271,000 | 25,367,000 | $ 11,997,000 | |||||||||||||||||||
Investment securities | 810,238,000 | 810,238,000 | 906,468,000 | |||||||||||||||||||
Accrued interest receivable | 64,087,000 | 64,087,000 | 60,355,000 | |||||||||||||||||||
Amount of non-controlling interest already held by a purchaser of a property | 300,000 | |||||||||||||||||||||
Payment to acquire non-controlling interest | $ 49,958,000 | $ 256,404,000 | 96,010,000 | |||||||||||||||||||
2019 Notes | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued to settle redemption | 3,600,000 | 12,400,000 | ||||||||||||||||||||
Value of shares issued to settle redemption | $ 78,000,000 | $ 263,400,000 | ||||||||||||||||||||
Convertible Senior Notes | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Face amount of debt repurchased | $ 250,700,000 | |||||||||||||||||||||
Convertible Senior Notes | 2019 Notes | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued to settle redemption | 3,600,000 | |||||||||||||||||||||
Value of shares issued to settle redemption | $ 78,000,000 | |||||||||||||||||||||
Face amount of debt repurchased | 0 | |||||||||||||||||||||
Convertible Senior Notes | 2019 Notes | Common stock | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Face amount of debt repurchased | $ 0 | 0 | $ 0 | |||||||||||||||||||
Class A Units | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Net income attributable to non-controlling interests | $ 21,600,000 | $ 17,600,000 | ||||||||||||||||||||
CMBS JV | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | ||||||||||||||||||||
Assets sold to joint venture | $ 333,000,000 | $ 333,000,000 | ||||||||||||||||||||
Investment securities | 318,300,000 | 318,300,000 | $ 24,500,000 | |||||||||||||||||||
Investments in existing CMBS JV | 13,300,000 | 13,300,000 | ||||||||||||||||||||
Accrued interest receivable | 1,400,000 | 1,400,000 | ||||||||||||||||||||
Amount of equity method investment funded | 169,800,000 | |||||||||||||||||||||
Non-controlling interest | $ 175,600,000 | $ 175,600,000 | $ 11,200,000 | |||||||||||||||||||
CMBS JV | Joint Venture Partner | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||||||||||||||
Amount of equity method investment funded | $ 163,200,000 | |||||||||||||||||||||
Woodstar II Portfolio | Class A Units | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued | 100,000 | 1,700,000 | ||||||||||||||||||||
Right to receive additional shares | 1,900,000 | |||||||||||||||||||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued | 10,200,000 | 7,403,731 | 10,183,505 | |||||||||||||||||||
Right to receive additional shares | 1,910,563 | 1,411,642 | 1,910,563 | |||||||||||||||||||
Number of common stock per unit | 1 | 1 | ||||||||||||||||||||
Redemption of units | 974,176 | 0 | ||||||||||||||||||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | Non-Controlling Interests | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Redemption of units | 235,900,000 | 254,900,000 | ||||||||||||||||||||
REIS Equity Portfolio | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Amount of non-controlling interest already held by a purchaser of a property | $ 300,000 | |||||||||||||||||||||
Payment to acquire non-controlling interest | $ 3,300,000 |
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, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | 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 | May 31, 2015 | Jan. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity Incentive Plans | |||||||||||||||||||
Share-based compensation expense, before tax | $ 46,237 | $ 43,458 | $ 39,223 | ||||||||||||||||
Granted (in shares) | 1,720,236 | ||||||||||||||||||
Vested immediately on the grant date | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Granted (in shares) | 218,898 | ||||||||||||||||||
Remaining vesting | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||||
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 | 7,498,820 | ||||||||||||||||||
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | Restricted stock units | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Granted (in shares) | 2,000,000 | 1,200,000 | 775,000 | 1,000,000 | 675,000 | 489,281 | |||||||||||||
Awards granted, fair value | $ 55,420 | $ 29,484 | $ 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) | 520,236 | ||||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||||
Starwood Property Trust, Inc. Equity Plan | Restricted stock | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Granted (in shares) | 520,236 | 851,170 | 742,516 | ||||||||||||||||
Starwood Property Trust, Inc. Equity Plan | Restricted stock units | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Granted (in shares) | 0 | 0 | 0 | ||||||||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Granted (in shares) | 1,200,000 | ||||||||||||||||||
Shares of common stock issued | 38,942 | 495,363 | 98,026 | 131,179 | 224,071 | 545,641 | 239,757 | 98,061 | 123,478 | 418,016 | |||||||||
Price per share | $ 24.08 | $ 22.16 | $ 21.94 | $ 21.67 | $ 21.49 | $ 20.13 | $ 21.64 | $ 22.10 | $ 21.83 | $ 22.84 | |||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | |||||||||||||||||||
Equity Incentive Plans | |||||||||||||||||||
Share-based compensation expense, before tax | $ 20,200 | $ 12,600 | $ 10,400 | ||||||||||||||||
Granted (in shares) | 1,200,000 | 775,000 | 1,000,000 | 675,000 | |||||||||||||||
Award vesting period | 3 years |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-Controlling Interests - Share-based Compensation Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation expenses | |||
Total share-based compensation expense | $ 46,237 | $ 43,458 | $ 39,223 |
Income tax effect | 1,700 | 1,300 | |
Management fees | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 30,337 | 33,273 | 31,495 |
Management fees | Starwood Property Trust, Inc. Manager Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 20,255 | 12,573 | 10,423 |
Management fees | Management agreement | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 10,082 | 20,700 | 21,072 |
General and administrative: | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 15,900 | 10,185 | 7,728 |
General and administrative: | Starwood Property Trust, Inc. Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | $ 15,900 | $ 10,185 | $ 7,728 |
Stockholders' Equity and Non-_6
Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Non-Vested Shares and Share Equivalents activity | ||||
Balance at the beginning of the period (in shares) | 2,434,365 | |||
Granted (in shares) | 1,720,236 | |||
Vested (in shares) | (1,410,621) | |||
Forfeited (in shares) | (25,213) | |||
Balance at the end of the period (in shares) | 2,718,767 | 2,434,365 | ||
Weighted Average Grant Date Fair Value (per share) | ||||
Balance at the beginning of period (in dollars per share) | $ 21.52 | |||
Granted (in dollars per share) | 24.01 | $ 21.20 | $ 22.20 | |
Vested (in dollars per share) | 22.20 | |||
Forfeited (in dollars per share) | 21.84 | |||
Balance at the end of period (in dollars per share) | $ 22.74 | $ 21.52 | ||
Vesting Schedule | ||||
2020 (in shares) | 1,467,740 | |||
2021 (in shares) | 831,792 | |||
2022 (in shares) | 419,235 | |||
Total (in shares) | 2,718,767 | 2,434,365 | 2,718,767 | |
Total unrecognized compensation costs related to unvested share-based compensation | $ 49.3 | |||
Total fair value of shares vested | $ 33.2 | $ 18.3 | $ 18.3 | |
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) | 1,436,445 | |||
Granted (in shares) | 520,236 | |||
Vested (in shares) | (518,298) | |||
Forfeited (in shares) | (25,213) | |||
Balance at the end of the period (in shares) | 1,413,170 | 1,436,445 | ||
Vesting Schedule | ||||
2020 (in shares) | 799,039 | |||
2021 (in shares) | 440,173 | |||
2022 (in shares) | 173,958 | |||
Total (in shares) | 1,413,170 | 1,436,445 | 1,413,170 | |
Starwood Property Trust, Inc. Manager Equity Plan | ||||
Non-Vested Shares and Share Equivalents activity | ||||
Balance at the beginning of the period (in shares) | 997,920 | |||
Granted (in shares) | 1,200,000 | |||
Vested (in shares) | (892,323) | |||
Balance at the end of the period (in shares) | 1,305,597 | 997,920 | ||
Vesting Schedule | ||||
2020 (in shares) | 668,701 | |||
2021 (in shares) | 391,619 | |||
2022 (in shares) | 245,277 | |||
Total (in shares) | 1,305,597 | 997,920 | 1,305,597 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Continuing Operations: | ||||||||||||
Basic - Income attributable to STWD common stockholders | $ 509,664 | $ 385,830 | $ 400,770 | |||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (3,873) | (3,592) | (3,183) | |||||||||
Basic earnings | 505,791 | 382,238 | 397,587 | |||||||||
Continuing Operations: | ||||||||||||
Basic - Income attributable to STWD common stockholders | 509,664 | 385,830 | 400,770 | |||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (3,873) | (3,592) | (3,183) | |||||||||
Add: Loss on extinguishment of debt | $ (1,500) | 19,270 | 5,808 | 5,915 | ||||||||
Diluted earnings | $ 518,145 | $ 409,485 | $ 397,587 | |||||||||
Number of Shares: | ||||||||||||
Basic - Average shares outstanding | 279,337 | 265,279 | 259,620 | |||||||||
Effect of dilutive securities - Contingently issuable shares (in shares) | 360 | 546 | 508 | |||||||||
Effect of dilutive securities - Unvested non-participating shares | 210 | 52 | ||||||||||
Diluted - Average shares outstanding | 289,712 | 288,484 | 262,079 | |||||||||
Basic: | ||||||||||||
Basic (in dollars per share) | $ 0.61 | $ 0.50 | $ 0.45 | $ 0.25 | $ 0.33 | $ 0.31 | $ 0.41 | $ 0.38 | $ 1.81 | $ 1.44 | $ 1.53 | |
Diluted: | ||||||||||||
Diluted (in dollars per share) | $ 0.60 | $ 0.49 | $ 0.45 | $ 0.25 | $ 0.33 | $ 0.31 | $ 0.40 | $ 0.38 | $ 1.79 | $ 1.42 | $ 1.52 | |
Convertible Senior Notes | ||||||||||||
Continuing Operations: | ||||||||||||
Add: Loss on extinguishment of debt | $ 2,099 | |||||||||||
Number of Shares: | ||||||||||||
Effect of dilutive securities - Convertible Notes (in shares) | 9,805 | 22,659 | 1,899 |
Earnings per Share - Dilutive a
Earnings per Share - Dilutive and Antidilutive securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 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 | 13.3 | 13.8 | 4.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in AOCI by component | |||
Beginning balance | $ 58,660 | $ 69,924 | $ 36,138 |
OCI before reclassifications | (6,125) | (8,247) | 33,884 |
Amounts reclassified from AOCI | (1,603) | (3,017) | (98) |
Net period OCI | (7,728) | (11,264) | 33,786 |
Ending balance | 50,932 | 58,660 | 69,924 |
Effective Portion of Cumulative Loss on Cash Flow Hedges | |||
Changes in AOCI by component | |||
Beginning balance | 25 | (26) | |
OCI before reclassifications | 8 | 54 | |
Amounts reclassified from AOCI | (33) | (3) | |
Net period OCI | (25) | 51 | |
Ending balance | 25 | ||
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Changes in AOCI by component | |||
Beginning balance | 53,515 | 57,889 | 44,929 |
OCI before reclassifications | (2,460) | (1,390) | 13,055 |
Amounts reclassified from AOCI | (59) | (2,984) | (95) |
Net period OCI | (2,519) | (4,374) | 12,960 |
Ending balance | 50,996 | 53,515 | 57,889 |
Foreign Currency Translation | |||
Changes in AOCI by component | |||
Beginning balance | 5,145 | 12,010 | (8,765) |
OCI before reclassifications | (3,665) | (6,865) | 20,775 |
Amounts reclassified from AOCI | (1,544) | ||
Net period OCI | (5,209) | (6,865) | 20,775 |
Ending balance | $ (64) | $ 5,145 | $ 12,010 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | $ (508,729) | $ (408,188) | $ (295,666) | ||||||||
Interest income from investment securities | 76,629 | 56,839 | 52,813 | ||||||||
Foreign currency gain (loss), net | 17,582 | (9,245) | 33,671 | ||||||||
Net income | $ 177,980 | $ 150,001 | $ 132,446 | $ 76,508 | $ 99,932 | $ 89,381 | $ 117,090 | $ 104,794 | 536,935 | 411,197 | 412,767 |
Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Net income | 1,603 | 3,017 | 98 | ||||||||
Effective Portion of Cumulative Loss on Cash Flow Hedges | Interest rate contracts | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | 33 | 3 | |||||||||
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest income from investment securities | 59 | 46 | 95 | ||||||||
Gain on sale of investments and other assets, net | 2,938 | ||||||||||
Total | 59 | $ 2,984 | $ 95 | ||||||||
Foreign Currency Translation | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Foreign currency gain (loss), net | $ 1,544 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets and liabilities measured at fair value | ||
Permitted reinvestment under static investment in VIEs | $ 0 | |
Marketable securities | 810,238 | $ 906,468 |
Domestic servicing rights | 16,917 | 20,557 |
Derivative assets | 28,943 | 52,691 |
Total Assets | 78,042,336 | 68,262,453 |
Total Liabilities | 72,905,322 | 63,362,264 |
Derivative liabilities | 8,740 | 15,415 |
Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 52,691 | |
Total Assets | 63,908,829 | 54,453,213 |
Derivative liabilities | 8,740 | 15,415 |
Total Liabilities | 60,752,234 | 52,210,457 |
Fair value measurements on recurring basis | Loans held-for-sale | ||
Assets and liabilities measured at fair value | ||
Loans held-for-sale, fair value option | 1,436,194 | 671,282 |
Fair value measurements on recurring basis | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 189,576 | 209,079 |
Fair value measurements on recurring basis | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 37,360 | 41,347 |
Fair value measurements on recurring basis | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 12,664 | 11,893 |
Fair value measurements on recurring basis | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 16,917 | 20,557 |
Fair value measurements on recurring basis | Level I | ||
Assets and liabilities measured at fair value | ||
Total Assets | 12,664 | 11,893 |
Fair value measurements on recurring basis | Level I | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 12,664 | 11,893 |
Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 52,691 | |
Total Assets | 41,295 | 68,810 |
Derivative liabilities | 8,740 | 15,415 |
Total Liabilities | 58,214,842 | 50,769,011 |
Fair value measurements on recurring basis | Level II | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 12,352 | 16,119 |
Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 63,854,870 | 54,372,510 |
Total Liabilities | 2,537,392 | 1,441,446 |
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 | 1,436,194 | 671,282 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 189,576 | 209,079 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 25,008 | 25,228 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 16,917 | 20,557 |
Primary beneficiary | ||
Assets and liabilities measured at fair value | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | 60,743,494 | 52,195,042 |
Primary beneficiary | Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 28,943 | |
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | 60,743,494 | 52,195,042 |
Primary beneficiary | Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 28,943 | |
Total Liabilities | 58,206,102 | 50,753,596 |
Primary beneficiary | Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | $ 2,537,392 | $ 1,441,446 |
Fair Value - Level III (Details
Fair Value - Level III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: OTTI | $ (109) | ||
Included in earnings: Net accretion | $ 11,791 | $ 15,253 | 15,208 |
Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 52,931,064 | 49,904,651 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (1,135,425) | (4,776,228) | |
Included in earnings: Net accretion | 9,945 | 10,932 | |
Included in OCI | (2,519) | (4,374) | |
Purchases / Originations | 4,020,332 | 2,280,409 | |
Sales | (2,959,039) | (2,068,061) | |
Issuances | 116,273 | 102,474 | |
Cash repayments / receipts | (198,436) | (292,352) | |
Transfers into Level III | 1,723,212 | 1,027,075 | |
Transfers out of Level III | 765,565 | 727,475 | |
Consolidations of VIEs | 10,057,069 | 9,672,943 | |
Deconsolidations of VIEs | (331,593) | (1,394,782) | |
Balance at the end of the period | 61,317,478 | 52,931,064 | 49,904,651 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (1,202,534) | (4,816,247) | |
Loans held-for-sale | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 671,282 | 745,743 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 71,337 | 40,217 | |
Purchases / Originations | 4,015,167 | 2,276,788 | |
Sales | (2,951,713) | (2,051,634) | |
Cash repayments / receipts | (144,066) | (144,322) | |
Transfers out of Level III | (225,813) | (195,510) | |
Balance at the end of the period | 1,436,194 | 671,282 | 745,743 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (4,459) | (3,753) | |
RMBS | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 209,079 | 247,021 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 3,527 | ||
Included in earnings: Net accretion | 9,945 | 10,932 | |
Included in OCI | (2,519) | (4,374) | |
Sales | (13,264) | ||
Cash repayments / receipts | (26,929) | (34,763) | |
Balance at the end of the period | 189,576 | 209,079 | 247,021 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | 9,858 | 10,398 | |
CMBS | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 25,228 | 24,191 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 505 | 2,568 | |
Purchases / Originations | 5,165 | 3,621 | |
Sales | (7,326) | (3,163) | |
Cash repayments / receipts | (11,348) | (23,520) | |
Transfers into Level III | (5,350) | (16,845) | |
Deconsolidations of VIEs | 7,434 | 4,686 | |
Balance at the end of the period | 25,008 | 25,228 | 24,191 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (666) | (352) | |
Domestic Servicing Rights | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 20,557 | 30,759 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (3,640) | (10,202) | |
Balance at the end of the period | 16,917 | 20,557 | 30,759 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (3,640) | (10,202) | |
VIE Assets | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 53,446,364 | 51,045,874 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (1,250,935) | (5,835,225) | |
Consolidations of VIEs | 10,368,817 | 9,885,200 | |
Deconsolidations of VIEs | (377,071) | (1,649,485) | |
Balance at the end of the period | 62,187,175 | 53,446,364 | 51,045,874 |
Amount of total (losses) gains included in earnings attributable to assets still held at period end | (1,250,935) | (5,835,225) | |
VIE liabilities | Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | (1,441,446) | (2,188,937) | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 47,308 | 1,022,887 | |
Issuances | 116,273 | 102,474 | |
Cash repayments / receipts | (16,093) | (89,747) | |
Transfers into Level III | 1,728,562 | 1,043,920 | |
Transfers out of Level III | 991,378 | 922,985 | |
Consolidations of VIEs | (311,748) | (212,257) | |
Deconsolidations of VIEs | 38,044 | 250,017 | |
Balance at the end of the period | (2,537,392) | (1,441,446) | $ (2,188,937) |
Changes in financial liabilities classified as Level III | |||
Amount of total gains (losses) included in earnings attributable to assets still held at end of period | $ 47,308 | $ 1,022,887 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets not carried at fair value: | ||
HTM securities | $ 570,638 | $ 644,149 |
Financial liabilities not carried at fair value: | ||
Unsecured senior notes | 1,928,622 | 1,998,831 |
Carrying Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 10,034,030 | 9,122,972 |
HTM securities | 570,638 | 644,149 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 9,834,108 | 8,757,804 |
Unsecured senior notes | 1,928,622 | 1,998,831 |
Fair Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 10,086,372 | 9,178,709 |
HTM securities | 568,727 | 643,948 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 9,826,511 | 8,662,548 |
Unsecured senior notes | $ 2,022,283 | $ 1,945,160 |
Fair Value - Significant unobse
Fair Value - Significant unobservable inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 16,917 | $ 20,557 |
Total Assets | 78,042,336 | 68,262,453 |
Total Liabilities | 72,905,322 | 63,362,264 |
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 | 1,436,194 | 671,282 |
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 | 189,576 | 209,079 |
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 | 37,360 | 41,347 |
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 | 16,917 | 20,557 |
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 | $ 1,436,194 | $ 671,282 |
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, duration | 1 year 3 months 18 days | 2 years 6 months |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | Debt yield | ||
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 | 0.034 | 0.046 |
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, duration | 11 years 3 months 18 days | 14 years 4 months 24 days |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | Debt yield | ||
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 | 0.059 | 0.061 |
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 | $ 189,576 | $ 209,079 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Portfolio percentage | 34.00% | 55.00% |
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 | Constant 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 | 0.031 | 0.032 |
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 | 0.005 | 0.011 |
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 |
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 | 0.05 | 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 | 0.27 | 0.21 |
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 | Constant 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 | 0.249 | 0.252 |
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 | 0.050 | 0.055 |
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 | 0.93 | 0.73 |
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 | 0.29 | 0.31 |
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 | 0.85 | 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 | 0.016 | 0.014 |
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 | 0.28 | 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 | $ 25,008 | $ 25,228 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
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 | 1.229 | 4.735 |
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 | $ 16,917 | $ 20,557 |
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 | 0.075 | 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 | ||
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
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 | 6.907 | 2.909 |
VIE duration (in years) | 19 years 2 months 12 days | 20 years 4 months 24 days |
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 | ||
Derivative Liability, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
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) | 12 years 8 months 12 days | 13 years 8 months 12 days |
VIE liabilities, measurement input | 6.907 | 2.909 |
Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Assets | $ 62,187,175 | $ 53,446,364 |
Total Liabilities | 60,743,494 | 52,195,042 |
Primary beneficiary | Fair value measurements on recurring basis | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | 60,743,494 | 52,195,042 |
Primary beneficiary | 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 | ||
Total Assets | 62,187,175 | 53,446,364 |
Total Liabilities | $ 2,537,392 | $ 1,441,446 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | |||
Assets | $ 78,042,336 | $ 68,262,453 | |
Cash | 478,388 | 239,824 | |
Current | |||
Federal | 4,917 | 10,508 | $ 17,495 |
Foreign | 977 | 293 | 8 |
State | 3,182 | 3,010 | 3,115 |
Total current | 9,076 | 13,811 | 20,618 |
Deferred | |||
Federal | 3,869 | 1,189 | 10,815 |
State | 287 | 330 | 89 |
Total deferred | 4,156 | 1,519 | 10,904 |
Total income tax provision | 13,232 | 15,330 | 31,522 |
Tax Cuts and Jobs Act | |||
Deferred income tax provision - Tax Cuts and Jobs Act | $ 10,400 | ||
Deferred tax assets and liabilities | |||
Lease assets | (1,950) | ||
Lease liabilities | 2,752 | ||
Net deferred tax assets (liabilities) | 14,020 | 18,177 | |
U.S. | |||
Deferred tax assets and liabilities | |||
Reserves and accruals | 4,017 | 5,161 | |
Domestic intangible assets | 8,185 | 14,022 | |
Investment in unconsolidated entities | (116) | (1,842) | |
Deferred income | 19 | 134 | |
Net operating and capital loss carryforwards | 885 | ||
Other temporary differences (asset) | 228 | 702 | |
Investing and Servicing Segment | TRS entities | |||
Income Taxes | |||
Assets | $ 1,600 | $ 553,500 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Reconciliation of statutory tax to effective tax | |||||
Federal statutory tax rate | $ 35 | $ 115,535,000 | $ 89,571,000 | $ 155,501,000 | |
REIT and other non-taxable income | (106,301,000) | (77,972,000) | (135,830,000) | ||
State income taxes | 3,034,000 | 3,038,000 | 3,091,000 | ||
Federal benefit of state tax deduction | (637,000) | (638,000) | (1,082,000) | ||
Valuation allowance | 0 | 0 | 5,500,000 | ||
Changes in tax law | 10,365,000 | ||||
Other | 1,601,000 | 1,331,000 | (523,000) | ||
Total income tax provision | 13,232,000 | 15,330,000 | 31,522,000 | ||
Discrete income tax provision | 18,300,000 | ||||
Earnings from unconsolidated entities | 53,900,000 | ||||
Pre-tax income (loss) from foreign operations | $ 900,000 | $ 1,400,000 | $ (26,600,000) | ||
Reconciliation of statutory tax rate to effective tax rate | |||||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 35.00% | |
REIT and other non-taxable income (as a percent) | (19.30%) | (18.30%) | (30.60%) | ||
State income taxes (as a percent) | 0.50% | 0.70% | 0.70% | ||
Federal benefit of state tax deduction (as a percent) | (0.10%) | (0.10%) | (0.20%) | ||
Changes in federal tax code (as a percent) | 2.30% | ||||
Other (as a percent) | 0.30% | 0.30% | (0.10%) | ||
Effective tax rate (as a percent) | 2.40% | 3.60% | 7.10% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2019USD ($)itemcontract |
Operating leases | |
Number of contracts | item | 328 |
Infrastructure Lending Segment | Interest rate swaps | Derivatives designated as hedging instruments | |
Operating leases | |
Number of contracts | contract | 7 |
Commitments | Commercial and Residential Lending Segment | |
Operating leases | |
Value of loans with future funding commitments | $ 3,200 |
Value of loans with future funding commitments expected to fund | 2,900 |
Commitments | Infrastructure Lending Segment | |
Operating leases | |
Value of loans with future funding commitments | 360.6 |
Revolvers and letters of credit | Infrastructure Lending Segment | |
Operating leases | |
Value of loans with future funding commitments | 145.1 |
Outstanding | 19.7 |
Delayed draw term loans | Infrastructure Lending Segment | |
Operating leases | |
Value of loans with future funding commitments | $ 215.5 |
Commitments and Contingencies -
Commitments and Contingencies - Lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies. | |||
Operating lease costs | $ 5,634 | $ 4,962 | $ 4,699 |
Short-term lease costs | 115 | 210 | 96 |
Sublease income | (1,613) | (1,643) | (1,500) |
Total lease cost | $ 4,136 | $ 3,529 | $ 3,295 |
Commitments and Contingencies_3
Commitments and Contingencies - Cash paid (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments and Contingencies. | |
Cash paid for amounts included in the measurement of lease liabilities-operating | $ 5,215 |
Commitments and Contingencies_4
Commitments and Contingencies - Weighted average lease (Details) | Dec. 31, 2019 |
Commitments and Contingencies. | |
Weighted-average remaining lease term | 6 years |
Weighted-average discount rate | 4.40% |
Commitments and Contingencies_5
Commitments and Contingencies - Future maturity of lease (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Future maturity of operating lease liabilities: | ||
2020 | $ 6,163 | |
2021 | 3,480 | |
2022 | 1,272 | |
2023 | 1,281 | |
2024 | 6,206 | |
Thereafter | 1,002 | |
Total | 19,404 | |
Less interest component | $ (2,316) | |
Operating lease liability | $ 12,000 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember |
Segment Data and Geographic Dat
Segment Data and Geographic Data - Results of Operations (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||||||||||||
Interest income from loans | $ 724,013 | $ 620,543 | $ 513,814 | |||||||||
Interest income from investment securities | 76,629 | 56,839 | 52,813 | |||||||||
Servicing fees | 54,296 | 78,766 | 61,446 | |||||||||
Rental income | 337,966 | 349,684 | 249,000 | |||||||||
Other revenues | 3,515 | 3,448 | 2,815 | |||||||||
Total revenues | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | 1,196,419 | 1,109,280 | 879,888 | |
Costs and expenses: | ||||||||||||
Management fees | 119,132 | 129,455 | 122,699 | |||||||||
Interest expense | 508,729 | 408,188 | 295,666 | |||||||||
General and administrative | 155,112 | 136,132 | 129,587 | |||||||||
Acquisition and investment pursuit costs | 1,056 | 8,587 | 3,472 | |||||||||
Costs of rental operations | 122,982 | 127,068 | 94,258 | |||||||||
Depreciation and amortization | 113,322 | 132,649 | 93,603 | |||||||||
Loan loss provision, net | 7,126 | 34,821 | (5,458) | |||||||||
Other expense | 2,365 | 732 | 1,422 | |||||||||
Total costs and expenses | 1,029,824 | 977,632 | 735,249 | |||||||||
Other income (loss): | ||||||||||||
Change in net assets related to consolidated VIEs | 236,309 | 165,892 | 252,434 | |||||||||
Change in fair value of servicing rights | (3,640) | (10,202) | (24,323) | |||||||||
Change in fair value of investment securities, net | 833 | 10,345 | (3,811) | |||||||||
Change in fair value of mortgage loans held-for-sale, net | 71,601 | 40,522 | 66,987 | |||||||||
Earnings (loss) from unconsolidated entities | (101,354) | 10,540 | 30,505 | |||||||||
(Loss) gain on derivative financial instruments, net | 188,028 | 59,044 | 20,499 | |||||||||
(Loss) gain on derivative financial instruments, net | (6,310) | 34,603 | (72,532) | |||||||||
Foreign currency gain (loss), net | 17,582 | (9,245) | 33,671 | |||||||||
OTTI/Impairment | (109) | |||||||||||
Loss on extinguishment of debt | $ 1,500 | (19,270) | (5,808) | (5,915) | ||||||||
Other (loss) income, net | (207) | (812) | 2,244 | |||||||||
Total other income | 383,572 | 294,879 | 299,650 | |||||||||
Income before income taxes | 550,167 | 426,527 | 444,289 | |||||||||
Income tax provision | (13,232) | (15,330) | (31,522) | |||||||||
Net income | 177,980 | 150,001 | 132,446 | 76,508 | 99,932 | 89,381 | 117,090 | 104,794 | 536,935 | 411,197 | 412,767 | |
Net income attributable to Starwood Property Trust, Inc. | (27,271) | (25,367) | (11,997) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | $ 171,869 | $ 140,396 | $ 127,016 | $ 70,383 | $ 92,132 | $ 84,536 | $ 109,230 | $ 99,932 | 509,664 | 385,830 | 400,770 | |
Operating Segments and Corporate | ||||||||||||
Revenues: | ||||||||||||
Interest income from loans | 724,013 | 620,543 | 513,814 | |||||||||
Interest income from investment securities | 205,236 | 178,258 | 181,453 | |||||||||
Servicing fees | 70,385 | 104,287 | 111,869 | |||||||||
Rental income | 337,966 | 349,684 | 249,000 | |||||||||
Other revenues | 3,541 | 3,624 | 3,125 | |||||||||
Total revenues | 1,341,141 | 1,256,396 | 1,059,261 | |||||||||
Costs and expenses: | ||||||||||||
Management fees | 118,971 | 129,043 | 122,392 | |||||||||
Interest expense | 509,377 | 409,174 | 296,760 | |||||||||
General and administrative | 154,769 | 135,793 | 129,251 | |||||||||
Acquisition and investment pursuit costs | 1,056 | 8,587 | 3,472 | |||||||||
Costs of rental operations | 122,982 | 127,068 | 94,258 | |||||||||
Depreciation and amortization | 113,322 | 132,649 | 93,603 | |||||||||
Loan loss provision, net | 7,126 | 34,821 | (5,458) | |||||||||
Other expense | 2,365 | 732 | 1,422 | |||||||||
Total costs and expenses | 1,029,968 | 977,867 | 735,700 | |||||||||
Other income (loss): | ||||||||||||
Change in fair value of servicing rights | (1,468) | (14,373) | (30,315) | |||||||||
Change in fair value of investment securities, net | 88,122 | 30,464 | 54,508 | |||||||||
Change in fair value of mortgage loans held-for-sale, net | 71,601 | 40,522 | 66,987 | |||||||||
Earnings (loss) from unconsolidated entities | (99,547) | 12,530 | 43,872 | |||||||||
(Loss) gain on derivative financial instruments, net | 188,028 | 59,044 | 20,499 | |||||||||
(Loss) gain on derivative financial instruments, net | (6,310) | 34,603 | (72,532) | |||||||||
Foreign currency gain (loss), net | 17,582 | (9,245) | 33,671 | |||||||||
OTTI/Impairment | (109) | |||||||||||
Loss on extinguishment of debt | (19,270) | (5,808) | (5,915) | |||||||||
Other (loss) income, net | (207) | (812) | 2,857 | |||||||||
Total other income | 238,531 | 146,925 | 113,523 | |||||||||
Income before income taxes | 549,704 | 425,454 | 437,084 | |||||||||
Income tax provision | (13,232) | (15,330) | (31,522) | |||||||||
Net income | 536,472 | 410,124 | 405,562 | |||||||||
Net income attributable to Starwood Property Trust, Inc. | (26,808) | (24,294) | (4,792) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | 509,664 | 385,830 | 400,770 | |||||||||
Operating segment | Commercial and Residential Lending Segment | ||||||||||||
Revenues: | ||||||||||||
Interest income from loans | 610,316 | 576,564 | 499,806 | |||||||||
Interest income from investment securities | 81,255 | 50,063 | 46,710 | |||||||||
Servicing fees | 423 | 421 | 711 | |||||||||
Other revenues | 1,038 | 902 | 686 | |||||||||
Total revenues | 693,032 | 627,950 | 547,913 | |||||||||
Costs and expenses: | ||||||||||||
Management fees | 1,495 | 1,838 | 1,933 | |||||||||
Interest expense | 222,118 | 160,769 | 107,167 | |||||||||
General and administrative | 29,481 | 26,324 | 19,981 | |||||||||
Acquisition and investment pursuit costs | 1,351 | 2,490 | 3,240 | |||||||||
Costs of rental operations | 2,691 | |||||||||||
Depreciation and amortization | 1,091 | 76 | 66 | |||||||||
Loan loss provision, net | 2,616 | 34,821 | (5,458) | |||||||||
Other expense | 307 | 307 | 149 | |||||||||
Total costs and expenses | 261,150 | 226,625 | 127,078 | |||||||||
Other income (loss): | ||||||||||||
Change in fair value of investment securities, net | (1,084) | (2,765) | 175 | |||||||||
Change in fair value of mortgage loans held-for-sale, net | 10,462 | (6,851) | 2,324 | |||||||||
Earnings (loss) from unconsolidated entities | 10,649 | 5,063 | 3,365 | |||||||||
(Loss) gain on derivative financial instruments, net | 4,619 | 4,019 | (59) | |||||||||
(Loss) gain on derivative financial instruments, net | (20,325) | 17,654 | (35,262) | |||||||||
Foreign currency gain (loss), net | 17,342 | (7,816) | 33,651 | |||||||||
OTTI/Impairment | (109) | |||||||||||
Loss on extinguishment of debt | (857) | (730) | ||||||||||
Other (loss) income, net | 43 | |||||||||||
Total other income | 20,806 | 8,617 | 4,085 | |||||||||
Income before income taxes | 452,688 | 409,942 | 424,920 | |||||||||
Income tax provision | (4,818) | (2,801) | (143) | |||||||||
Net income | 447,870 | 407,141 | 424,777 | |||||||||
Net income attributable to Starwood Property Trust, Inc. | (392) | (1,451) | (1,419) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | 447,478 | 405,690 | 423,358 | |||||||||
Operating segment | Infrastructure Lending Segment | ||||||||||||
Revenues: | ||||||||||||
Interest income from loans | 99,580 | 28,995 | ||||||||||
Interest income from investment securities | 6,318 | 1,095 | ||||||||||
Other revenues | 751 | 619 | ||||||||||
Total revenues | 106,649 | 30,709 | ||||||||||
Costs and expenses: | ||||||||||||
Interest expense | 62,836 | 20,949 | ||||||||||
General and administrative | 18,260 | 5,631 | ||||||||||
Acquisition and investment pursuit costs | 75 | 6,806 | ||||||||||
Depreciation and amortization | 83 | |||||||||||
Loan loss provision, net | 4,510 | |||||||||||
Total costs and expenses | 85,764 | 33,386 | ||||||||||
Other income (loss): | ||||||||||||
(Loss) gain on derivative financial instruments, net | 3,041 | |||||||||||
(Loss) gain on derivative financial instruments, net | (3,349) | 1,821 | ||||||||||
Foreign currency gain (loss), net | 205 | (1,425) | ||||||||||
Loss on extinguishment of debt | (11,357) | |||||||||||
Other (loss) income, net | (50) | |||||||||||
Total other income | (11,510) | 396 | ||||||||||
Income before income taxes | 9,375 | (2,281) | ||||||||||
Income tax provision | 89 | (292) | ||||||||||
Net income | 9,464 | (2,573) | ||||||||||
Net income attributable to Starwood Property Trust, Inc. | 9,464 | (2,573) | ||||||||||
Operating segment | Investing and Servicing Segment | ||||||||||||
Revenues: | ||||||||||||
Interest income from loans | 14,117 | 14,984 | 14,008 | |||||||||
Interest income from investment securities | 117,663 | 127,100 | 134,743 | |||||||||
Servicing fees | 69,962 | 103,866 | 111,158 | |||||||||
Rental income | 50,872 | 57,231 | 50,534 | |||||||||
Other revenues | 1,317 | 1,299 | 1,794 | |||||||||
Total revenues | 253,931 | 304,480 | 312,237 | |||||||||
Costs and expenses: | ||||||||||||
Management fees | 72 | 72 | 72 | |||||||||
Interest expense | 33,621 | 27,459 | 19,840 | |||||||||
General and administrative | 87,115 | 84,978 | 94,625 | |||||||||
Acquisition and investment pursuit costs | (587) | (663) | (143) | |||||||||
Costs of rental operations | 24,921 | 27,436 | 22,050 | |||||||||
Depreciation and amortization | 19,587 | 21,889 | 19,999 | |||||||||
Other expense | 365 | 452 | 1,163 | |||||||||
Total costs and expenses | 165,094 | 161,623 | 157,606 | |||||||||
Other income (loss): | ||||||||||||
Change in fair value of servicing rights | (1,468) | (14,373) | (30,315) | |||||||||
Change in fair value of investment securities, net | 89,206 | 33,229 | 54,333 | |||||||||
Change in fair value of mortgage loans held-for-sale, net | 61,139 | 47,373 | 64,663 | |||||||||
Earnings (loss) from unconsolidated entities | 4,166 | 3,809 | 68,192 | |||||||||
(Loss) gain on derivative financial instruments, net | 60,622 | 26,557 | 20,481 | |||||||||
(Loss) gain on derivative financial instruments, net | (7,414) | (298) | (2,497) | |||||||||
Foreign currency gain (loss), net | (2) | (2) | 6 | |||||||||
Loss on extinguishment of debt | (845) | (318) | ||||||||||
Other (loss) income, net | 16 | (1,363) | 1,105 | |||||||||
Total other income | 205,420 | 94,614 | 175,968 | |||||||||
Income before income taxes | 294,257 | 237,471 | 330,599 | |||||||||
Income tax provision | (8,110) | (4,688) | (31,130) | |||||||||
Net income | 286,147 | 232,783 | 299,469 | |||||||||
Net income attributable to Starwood Property Trust, Inc. | (4,786) | (5,220) | (3,373) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | 281,361 | 227,563 | 296,096 | |||||||||
Operating segment | Property Segment | ||||||||||||
Revenues: | ||||||||||||
Rental income | 287,094 | 292,453 | 198,466 | |||||||||
Other revenues | 409 | 444 | 645 | |||||||||
Total revenues | 287,503 | 292,897 | 199,111 | |||||||||
Costs and expenses: | ||||||||||||
Interest expense | 76,838 | 75,192 | 46,552 | |||||||||
General and administrative | 6,232 | 7,113 | 4,734 | |||||||||
Acquisition and investment pursuit costs | 217 | (46) | 375 | |||||||||
Costs of rental operations | 95,370 | 99,632 | 72,208 | |||||||||
Depreciation and amortization | 92,561 | 110,684 | 73,538 | |||||||||
Other expense | 1,693 | (27) | 110 | |||||||||
Total costs and expenses | 272,911 | 292,548 | 197,517 | |||||||||
Other income (loss): | ||||||||||||
Earnings (loss) from unconsolidated entities | (114,362) | 3,658 | (27,685) | |||||||||
(Loss) gain on derivative financial instruments, net | 119,746 | 28,468 | 77 | |||||||||
(Loss) gain on derivative financial instruments, net | (1,284) | 22,756 | (32,333) | |||||||||
Foreign currency gain (loss), net | 37 | (2) | 14 | |||||||||
Loss on extinguishment of debt | (4,745) | (2,661) | ||||||||||
Other (loss) income, net | (100) | 508 | 7 | |||||||||
Total other income | (708) | 52,727 | (59,920) | |||||||||
Income before income taxes | 13,884 | 53,076 | (58,326) | |||||||||
Income tax provision | (393) | (7,549) | (249) | |||||||||
Net income | 13,491 | 45,527 | (58,575) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | (21,630) | (17,623) | ||||||||||
Net income attributable to Starwood Property Trust, Inc. | (8,139) | 27,904 | (58,575) | |||||||||
Corporate | ||||||||||||
Revenues: | ||||||||||||
Other revenues | 26 | 360 | ||||||||||
Total revenues | 26 | 360 | ||||||||||
Costs and expenses: | ||||||||||||
Management fees | 117,404 | 127,133 | 120,387 | |||||||||
Interest expense | 113,964 | 124,805 | 123,201 | |||||||||
General and administrative | 13,681 | 11,747 | 9,911 | |||||||||
Total costs and expenses | 245,049 | 263,685 | 253,499 | |||||||||
Other income (loss): | ||||||||||||
(Loss) gain on derivative financial instruments, net | 26,062 | (7,330) | (2,440) | |||||||||
Loss on extinguishment of debt | (1,466) | (2,099) | (5,915) | |||||||||
Other (loss) income, net | (73) | 1,745 | ||||||||||
Total other income | 24,523 | (9,429) | (6,610) | |||||||||
Income before income taxes | (220,500) | (272,754) | (260,109) | |||||||||
Net income | (220,500) | (272,754) | (260,109) | |||||||||
Net income attributable to Starwood Property Trust, Inc. | (220,500) | (272,754) | (260,109) | |||||||||
LNR VIEs | ||||||||||||
Revenues: | ||||||||||||
Interest income from investment securities | (128,607) | (121,419) | (128,640) | |||||||||
Servicing fees | (16,089) | (25,521) | (50,423) | |||||||||
Other revenues | (26) | (176) | (310) | |||||||||
Total revenues | (144,722) | (147,116) | (179,373) | |||||||||
Costs and expenses: | ||||||||||||
Management fees | 161 | 412 | 307 | |||||||||
Interest expense | (648) | (986) | (1,094) | |||||||||
General and administrative | 343 | 339 | 336 | |||||||||
Total costs and expenses | (144) | (235) | (451) | |||||||||
Other income (loss): | ||||||||||||
Change in net assets related to consolidated VIEs | 236,309 | 165,892 | 252,434 | |||||||||
Change in fair value of servicing rights | (2,172) | 4,171 | 5,992 | |||||||||
Change in fair value of investment securities, net | (87,289) | (20,119) | (58,319) | |||||||||
Earnings (loss) from unconsolidated entities | (1,807) | (1,990) | (13,367) | |||||||||
Other (loss) income, net | (613) | |||||||||||
Total other income | 145,041 | 147,954 | 186,127 | |||||||||
Income before income taxes | 463 | 1,073 | 7,205 | |||||||||
Net income | 463 | 1,073 | 7,205 | |||||||||
Net income attributable to Starwood Property Trust, Inc. | $ (463) | $ (1,073) | $ (7,205) |
Segment Data and Geographic D_2
Segment Data and Geographic Data - Balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Cash and cash equivalents | $ 478,388 | $ 239,824 | ||
Restricted cash | 95,643 | 248,041 | ||
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 10,586,074 | 8,532,356 | ||
Loans held-for-sale | 884,150 | 1,187,552 | ||
Loans transferred as secured borrowings | 74,346 | |||
Investment securities | 810,238 | 906,468 | ||
Properties, net | 2,266,440 | 2,784,890 | ||
Intangible assets | 85,700 | 145,033 | $ 183,092 | |
Investment in unconsolidated entities | 84,329 | 171,765 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 28,943 | 52,691 | ||
Accrued interest receivable | 64,087 | 60,355 | ||
Other assets | 211,323 | 152,922 | ||
Total Assets | 78,042,336 | 68,262,453 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 212,006 | 217,663 | ||
Related-party payable | 40,925 | 44,043 | ||
Dividends payable | 137,427 | 133,466 | ||
Derivative liabilities | 8,740 | 15,415 | ||
Secured financing agreements, net | 8,906,048 | 8,683,565 | ||
Collateralized loan obligations, net | 928,060 | |||
Unsecured senior notes, net | 1,928,622 | 1,998,831 | ||
Secured borrowings on transferred loans, net | 74,239 | |||
Total Liabilities | 72,905,322 | 63,362,264 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,874 | 2,808 | ||
Additional paid-in capital | 5,132,532 | 4,995,156 | ||
Treasury stock | (104,194) | (104,194) | ||
Accumulated other comprehensive income (loss) | 50,932 | 58,660 | 69,924 | $ 36,138 |
Retained earnings (accumulated deficit) | (381,719) | (348,998) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,700,425 | 4,603,432 | ||
Non-controlling interests in consolidated subsidiaries | 436,589 | 296,757 | ||
Total Equity | 5,137,014 | 4,900,189 | $ 4,579,201 | $ 4,560,073 |
Total Liabilities and Equity | 78,042,336 | 68,262,453 | ||
Infrastructure Lending Segment | ||||
Assets: | ||||
Goodwill | 119,400 | 119,400 | ||
Investing and Servicing Segment | ||||
Assets: | ||||
Goodwill | 140,400 | 140,400 | ||
Operating Segments and Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 477,167 | 237,270 | ||
Restricted cash | 95,643 | 248,041 | ||
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 10,586,074 | 8,532,356 | ||
Loans held-for-sale | 884,150 | 1,187,552 | ||
Loans transferred as secured borrowings | 74,346 | |||
Investment securities | 2,215,275 | 2,110,508 | ||
Properties, net | 2,266,440 | 2,784,890 | ||
Intangible assets | 111,947 | 169,108 | ||
Investment in unconsolidated entities | 104,966 | 193,765 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 28,943 | 52,691 | ||
Accrued interest receivable | 64,893 | 60,996 | ||
Other assets | 211,330 | 152,948 | ||
Total Assets | 17,306,674 | 16,064,317 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 211,922 | 217,521 | ||
Related-party payable | 40,925 | 44,043 | ||
Dividends payable | 137,427 | 133,466 | ||
Derivative liabilities | 8,740 | 15,415 | ||
Secured financing agreements, net | 8,919,998 | 8,697,515 | ||
Collateralized loan obligations, net | 928,060 | |||
Unsecured senior notes, net | 1,928,622 | 1,998,831 | ||
Secured borrowings on transferred loans, net | 74,239 | |||
Total Liabilities | 12,175,694 | 11,181,030 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,874 | 2,808 | ||
Additional paid-in capital | 5,132,532 | 4,995,156 | ||
Treasury stock | (104,194) | (104,194) | ||
Accumulated other comprehensive income (loss) | 50,932 | 58,660 | ||
Retained earnings (accumulated deficit) | (381,719) | (348,998) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,700,425 | 4,603,432 | ||
Non-controlling interests in consolidated subsidiaries | 430,555 | 279,855 | ||
Total Equity | 5,130,980 | 4,883,287 | ||
Total Liabilities and Equity | 17,306,674 | 16,064,317 | ||
Operating segment | Commercial and Residential Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 26,278 | 14,385 | ||
Restricted cash | 36,135 | 28,324 | ||
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 9,187,332 | 7,072,220 | ||
Loans held-for-sale | 605,384 | 670,155 | ||
Loans transferred as secured borrowings | 74,346 | |||
Investment securities | 992,974 | 1,050,920 | ||
Properties, net | 26,834 | |||
Investment in unconsolidated entities | 46,921 | 35,274 | ||
Derivative assets | 14,718 | 18,174 | ||
Accrued interest receivable | 45,996 | 39,862 | ||
Other assets | 59,170 | 13,958 | ||
Total Assets | 11,041,742 | 9,017,618 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 30,594 | 26,508 | ||
Derivative liabilities | 7,698 | 1,290 | ||
Secured financing agreements, net | 5,038,876 | 4,405,599 | ||
Collateralized loan obligations, net | 928,060 | |||
Secured borrowings on transferred loans, net | 74,239 | |||
Total Liabilities | 6,005,228 | 4,507,636 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 1,522,360 | 1,430,503 | ||
Accumulated other comprehensive income (loss) | 50,996 | 53,516 | ||
Retained earnings (accumulated deficit) | 3,463,158 | 3,015,676 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 5,036,514 | 4,499,695 | ||
Non-controlling interests in consolidated subsidiaries | 10,287 | |||
Total Equity | 5,036,514 | 4,509,982 | ||
Total Liabilities and Equity | 11,041,742 | 9,017,618 | ||
Operating segment | Infrastructure Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 2,209 | 13 | ||
Restricted cash | 41,967 | 175,659 | ||
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 1,397,448 | 1,456,779 | ||
Loans held-for-sale | 119,528 | 469,775 | ||
Investment securities | 45,153 | 60,768 | ||
Investment in unconsolidated entities | 25,862 | |||
Goodwill | 119,409 | 119,409 | ||
Derivative assets | 7 | 1,066 | ||
Accrued interest receivable | 3,134 | 6,982 | ||
Other assets | 6,101 | 20,472 | ||
Total Assets | 1,760,818 | 2,310,923 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 6,443 | 26,476 | ||
Derivative liabilities | 750 | 477 | ||
Secured financing agreements, net | 1,217,066 | 1,524,551 | ||
Total Liabilities | 1,224,259 | 1,551,504 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 529,668 | 761,992 | ||
Retained earnings (accumulated deficit) | 6,891 | (2,573) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 536,559 | 759,419 | ||
Total Equity | 536,559 | 759,419 | ||
Total Liabilities and Equity | 1,760,818 | 2,310,923 | ||
Operating segment | Property Segment | ||||
Assets: | ||||
Cash and cash equivalents | 30,123 | 27,408 | ||
Restricted cash | 7,171 | 25,144 | ||
Properties, net | 2,029,024 | 2,512,847 | ||
Intangible assets | 47,303 | 90,889 | ||
Investment in unconsolidated entities | 114,362 | |||
Derivative assets | 3 | 32,733 | ||
Accrued interest receivable | 133 | 359 | ||
Other assets | 82,910 | 67,098 | ||
Total Assets | 2,196,667 | 2,870,840 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 48,370 | 67,415 | ||
Derivative liabilities | 37 | |||
Secured financing agreements, net | 1,698,334 | 1,884,187 | ||
Total Liabilities | 1,746,704 | 1,951,639 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 208,650 | 645,561 | ||
Accumulated other comprehensive income (loss) | 5,208 | |||
Retained earnings (accumulated deficit) | 5,431 | 13,570 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 214,081 | 664,339 | ||
Non-controlling interests in consolidated subsidiaries | 235,882 | 254,862 | ||
Total Equity | 449,963 | 919,201 | ||
Total Liabilities and Equity | 2,196,667 | 2,870,840 | ||
Operating segment | Investing and Servicing Segment | ||||
Assets: | ||||
Cash and cash equivalents | 61,693 | 31,449 | ||
Restricted cash | 10,370 | 11,679 | ||
Loans held-for-investment, net ($671,572 and $0 held at fair value) | 1,294 | 3,357 | ||
Loans held-for-sale | 159,238 | 47,622 | ||
Investment securities | 1,177,148 | 998,820 | ||
Properties, net | 210,582 | 272,043 | ||
Intangible assets | 64,644 | 78,219 | ||
Investment in unconsolidated entities | 32,183 | 44,129 | ||
Goodwill | 140,437 | 140,437 | ||
Derivative assets | 7 | 718 | ||
Accrued interest receivable | 2,388 | 616 | ||
Other assets | 54,238 | 49,363 | ||
Total Assets | 1,914,222 | 1,678,452 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 73,021 | 75,655 | ||
Related-party payable | 5 | 53 | ||
Derivative liabilities | 292 | 1,423 | ||
Secured financing agreements, net | 574,507 | 585,258 | ||
Total Liabilities | 647,825 | 662,389 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | (123,210) | 87,779 | ||
Accumulated other comprehensive income (loss) | (64) | (64) | ||
Retained earnings (accumulated deficit) | 1,194,998 | 913,642 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 1,071,724 | 1,001,357 | ||
Non-controlling interests in consolidated subsidiaries | 194,673 | 14,706 | ||
Total Equity | 1,266,397 | 1,016,063 | ||
Total Liabilities and Equity | 1,914,222 | 1,678,452 | ||
Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 356,864 | 164,015 | ||
Restricted cash | 7,235 | |||
Derivative assets | 14,208 | |||
Accrued interest receivable | 13,242 | 13,177 | ||
Other assets | 8,911 | 2,057 | ||
Total Assets | 393,225 | 186,484 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 53,494 | 21,467 | ||
Related-party payable | 40,920 | 43,990 | ||
Dividends payable | 137,427 | 133,466 | ||
Derivative liabilities | 12,188 | |||
Secured financing agreements, net | 391,215 | 297,920 | ||
Unsecured senior notes, net | 1,928,622 | 1,998,831 | ||
Total Liabilities | 2,551,678 | 2,507,862 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,874 | 2,808 | ||
Additional paid-in capital | 2,995,064 | 2,069,321 | ||
Treasury stock | (104,194) | (104,194) | ||
Retained earnings (accumulated deficit) | (5,052,197) | (4,289,313) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | (2,158,453) | (2,321,378) | ||
Total Equity | (2,158,453) | (2,321,378) | ||
Total Liabilities and Equity | 393,225 | 186,484 | ||
LNR VIEs | ||||
Assets: | ||||
Cash and cash equivalents | 1,221 | 2,554 | ||
Investment securities | (1,405,037) | (1,204,040) | ||
Intangible assets | (26,247) | (24,075) | ||
Investment in unconsolidated entities | (20,637) | (22,000) | ||
Accrued interest receivable | (806) | (641) | ||
Other assets | (7) | (26) | ||
Total Assets | 60,735,662 | 52,198,136 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 84 | 142 | ||
Secured financing agreements, net | (13,950) | (13,950) | ||
Total Liabilities | 60,729,628 | 52,181,234 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Non-controlling interests in consolidated subsidiaries | 6,034 | 16,902 | ||
Total Equity | 6,034 | 16,902 | ||
Total Liabilities and Equity | 60,735,662 | 52,198,136 | ||
Primary beneficiary | ||||
Assets: | ||||
Total Assets | 62,187,175 | 53,446,364 | ||
Liabilities: | ||||
Total Liabilities | 60,743,494 | 52,195,042 | ||
Primary beneficiary | LNR VIEs | ||||
Assets: | ||||
Total Assets | 62,187,175 | 53,446,364 | ||
Liabilities: | ||||
Total Liabilities | $ 60,743,494 | $ 52,195,042 |
Segment and Geographic Data - F
Segment and Geographic Data - Foreign revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Revenues | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 1,196,419 | $ 1,109,280 | $ 879,888 |
Foreign | |||||||||||
Revenues | |||||||||||
Revenues | $ 115,600 | $ 90,500 | $ 82,000 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Revenues | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | $ 293,418 | $ 285,719 | $ 269,556 | $ 260,587 | $ 1,196,419 | $ 1,109,280 | $ 879,888 |
Net income | 177,980 | 150,001 | 132,446 | 76,508 | 99,932 | 89,381 | 117,090 | 104,794 | 536,935 | 411,197 | 412,767 |
Net income attributable to Starwood Property Trust, Inc. | $ 171,869 | $ 140,396 | $ 127,016 | $ 70,383 | $ 92,132 | $ 84,536 | $ 109,230 | $ 99,932 | $ 509,664 | $ 385,830 | $ 400,770 |
Basic earnings per share: | |||||||||||
Earnings per share - Basic (in dollars per share) | $ 0.61 | $ 0.50 | $ 0.45 | $ 0.25 | $ 0.33 | $ 0.31 | $ 0.41 | $ 0.38 | $ 1.81 | $ 1.44 | $ 1.53 |
Diluted earnings per share: | |||||||||||
Earnings per share - Diluted (in dollars per share) | $ 0.60 | $ 0.49 | $ 0.45 | $ 0.25 | $ 0.33 | $ 0.31 | $ 0.40 | $ 0.38 | $ 1.79 | $ 1.42 | $ 1.52 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 25, 2020 | Nov. 08, 2019 | Aug. 07, 2019 | May 08, 2019 | Feb. 28, 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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 29, 2020 |
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 | ||
Subsequent event | |||||||||||||||||
Subsequent Events | |||||||||||||||||
Dividend declared (in dollars per share) | $ 0.48 | ||||||||||||||||
Subsequent event | RMBS | |||||||||||||||||
Subsequent Events | |||||||||||||||||
Securitization of loans held for sale | $ 381.3 |
Schedule III-Real Estate and _2
Schedule III-Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule III-Residential Real Estate | ||||
Encumbrances | $ 1,892,995 | |||
Initial Cost to Company | ||||
Land | 446,973 | |||
Depreciable Property | 1,981,150 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Depreciable Property | 62,507 | |||
Gross Amounts Carried | ||||
Land | 447,002 | |||
Depreciable Property | 2,043,628 | |||
Total | 2,490,630 | $ 2,972,803 | $ 2,755,050 | $ 1,986,285 |
Accumulated Depreciation | (224,190) | $ (187,913) | $ (107,569) | $ (41,565) |
Aggregate cost for federal income tax purposes | $ 2,600,000 | |||
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 | 929 | |||
Gross Amounts Carried | ||||
Depreciable Property | 6,494 | |||
Total | 6,494 | |||
Accumulated Depreciation | $ (1,807) | |||
Medical office - U.S. Midwest | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (7) | |||
Encumbrances | $ 78,048 | |||
Initial Cost to Company | ||||
Land | 2,764 | |||
Depreciable Property | 97,802 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 503 | |||
Gross Amounts Carried | ||||
Land | 2,764 | |||
Depreciable Property | 98,305 | |||
Total | 101,069 | |||
Accumulated Depreciation | $ (9,705) | |||
Medical office - U.S. North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (7) | |||
Encumbrances | $ 191,661 | |||
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 | $ (16,437) | |||
Medical office - U.S. South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (6) | |||
Encumbrances | $ 107,252 | |||
Initial Cost to Company | ||||
Land | 7,930 | |||
Depreciable Property | 117,740 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 159 | |||
Gross Amounts Carried | ||||
Land | 7,930 | |||
Depreciable Property | 117,899 | |||
Total | 125,829 | |||
Accumulated Depreciation | $ (11,555) | |||
Medical office - U.S. South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (8) | |||
Encumbrances | $ 125,345 | |||
Initial Cost to Company | ||||
Land | 15,921 | |||
Depreciable Property | 126,842 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 667 | |||
Gross Amounts Carried | ||||
Land | 15,921 | |||
Depreciable Property | 127,509 | |||
Total | 143,430 | |||
Accumulated Depreciation | $ (13,493) | |||
Medical office - U.S. West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (6) | |||
Encumbrances | $ 97,694 | |||
Initial Cost to Company | ||||
Land | 13,415 | |||
Depreciable Property | 107,844 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 488 | |||
Gross Amounts Carried | ||||
Land | 13,415 | |||
Depreciable Property | 108,332 | |||
Total | 121,747 | |||
Accumulated Depreciation | $ (12,243) | |||
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 | 246 | |||
Gross Amounts Carried | ||||
Land | 1,002 | |||
Depreciable Property | 14,569 | |||
Total | 15,571 | |||
Accumulated Depreciation | $ (1,659) | |||
Multifamily - U.S., South East (64 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (60) | |||
Encumbrances | $ 930,351 | |||
Initial Cost to Company | ||||
Land | 251,084 | |||
Depreciable Property | 926,809 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 31,202 | |||
Gross Amounts Carried | ||||
Land | 251,113 | |||
Depreciable Property | 957,982 | |||
Total | 1,209,095 | |||
Accumulated Depreciation | $ (113,293) | |||
Office - U.S. North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (1) | |||
Encumbrances | $ 17,474 | |||
Initial Cost to Company | ||||
Land | 7,250 | |||
Depreciable Property | 10,614 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 2,538 | |||
Gross Amounts Carried | ||||
Land | 7,250 | |||
Depreciable Property | 13,152 | |||
Total | 20,402 | |||
Accumulated Depreciation | $ (1,505) | |||
Office - U.S., South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (2) | |||
Encumbrances | $ 23,809 | |||
Initial Cost to Company | ||||
Land | 7,081 | |||
Depreciable Property | 31,528 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 3,503 | |||
Gross Amounts Carried | ||||
Land | 7,081 | |||
Depreciable Property | 35,031 | |||
Total | 42,112 | |||
Accumulated Depreciation | $ (7,585) | |||
Office - U.S., South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (2) | |||
Encumbrances | $ 28,334 | |||
Initial Cost to Company | ||||
Land | 8,188 | |||
Depreciable Property | 28,019 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 2,252 | |||
Gross Amounts Carried | ||||
Land | 8,188 | |||
Depreciable Property | 30,271 | |||
Total | 38,459 | |||
Accumulated Depreciation | $ (2,735) | |||
Office - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (1) | |||
Encumbrances | $ 15,448 | |||
Initial Cost to Company | ||||
Depreciable Property | 4,261 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 5,592 | |||
Gross Amounts Carried | ||||
Depreciable Property | 9,853 | |||
Total | 9,853 | |||
Accumulated Depreciation | $ (1,301) | |||
Retail - U.S., Mid Atlantic | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (1) | |||
Encumbrances | $ 11,438 | |||
Initial Cost to Company | ||||
Land | 6,432 | |||
Depreciable Property | 6,315 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 11,940 | |||
Gross Amounts Carried | ||||
Land | 6,432 | |||
Depreciable Property | 18,255 | |||
Total | 24,687 | |||
Accumulated Depreciation | $ (1,985) | |||
Retail - U.S., Midwest (7 properties) | ||||
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 | $ (9,573) | |||
Retail - U.S., North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (1) | |||
Encumbrances | $ 11,580 | |||
Initial Cost to Company | ||||
Land | 472 | |||
Depreciable Property | 12,260 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 568 | |||
Gross Amounts Carried | ||||
Land | 472 | |||
Depreciable Property | 12,828 | |||
Total | 13,300 | |||
Accumulated Depreciation | $ (1,877) | |||
Retail - U.S., South East (5 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (5) | |||
Encumbrances | $ 42,200 | |||
Initial Cost to Company | ||||
Land | 21,353 | |||
Depreciable Property | 60,618 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 49 | |||
Gross Amounts Carried | ||||
Land | 21,353 | |||
Depreciable Property | 60,667 | |||
Total | 82,020 | |||
Accumulated Depreciation | $ (4,352) | |||
Retail - U.S., South West (6 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (6) | |||
Encumbrances | $ 76,894 | |||
Initial Cost to Company | ||||
Land | 37,458 | |||
Depreciable Property | 78,579 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 90 | |||
Gross Amounts Carried | ||||
Land | 37,458 | |||
Depreciable Property | 78,669 | |||
Total | 116,127 | |||
Accumulated Depreciation | $ (8,012) | |||
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 | $ (2,875) | |||
Self-storage - U.S., North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (1) | |||
Encumbrances | $ 14,500 | |||
Initial Cost to Company | ||||
Land | 2,202 | |||
Depreciable Property | 11,498 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 172 | |||
Gross Amounts Carried | ||||
Land | 2,202 | |||
Depreciable Property | 11,670 | |||
Total | 13,872 | |||
Accumulated Depreciation | $ (1,361) | |||
Industrial - U.S. South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | (2) | |||
Initial Cost to Company | ||||
Land | $ 10,121 | |||
Depreciable Property | 17,295 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 255 | |||
Gross Amounts Carried | ||||
Land | 10,121 | |||
Depreciable Property | 17,550 | |||
Total | 27,671 | |||
Accumulated Depreciation | $ (837) |
Schedule III-Real Estate and _3
Schedule III-Real Estate and Accumulated Depreciation - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate activity | |||
Beginning balance | $ 2,972,803 | $ 2,755,050 | $ 1,986,285 |
Additions during the year: | |||
Acquisitions (1) | 8,472 | 445,170 | 725,955 |
Acquisitions through foreclosure | 27,416 | ||
Improvements | 30,865 | 25,764 | 18,575 |
Contingent consideration issued | 2,877 | 38,211 | |
Measurement period adjustments | 660 | ||
Foreign currency translation | 59,508 | ||
Total additions | 69,630 | 509,145 | 804,698 |
Deductions during the year: | |||
Costs of real estate sold | (535,417) | (269,989) | (35,774) |
Foreign currency translation | (15,702) | (21,260) | |
Other | (684) | (143) | (159) |
Total deductions | (551,803) | (291,392) | (35,933) |
Ending balance | 2,490,630 | 2,972,803 | 2,755,050 |
Accumulated depreciation activity | |||
Beginning balance | 187,913 | 107,569 | 41,565 |
Depreciation expense | 92,024 | 91,188 | 65,253 |
Disposition/write-offs | (54,260) | (9,389) | (1,785) |
Foreign currency translation | (1,487) | (1,455) | 2,536 |
Ending balance | $ 224,190 | $ 187,913 | $ 107,569 |
Schedule IV-Mortgage Loans on_2
Schedule IV-Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Mortgage Loans on Real Estate | ||||
Face Amount | $ 11,530,915 | $ 9,876,545 | ||
Carrying Amount | $ 11,470,224 | 9,794,254 | $ 7,382,641 | $ 5,946,274 |
Weighted average spread of loans (as a percent) | 4.20% | |||
Principal Amount of Delinquent Loans | $ 85,440 | |||
Aggregate cost for federal income tax purposes | 10,000,000 | |||
Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Loan loss allowance | (33,415) | |||
Prepaid Loan Costs, Net | (2,230) | |||
Mixed Use, Birmingham, United Kingdom | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | 331,342 | |||
Carrying Amount | $ 327,235 | |||
Mixed Use, Birmingham, United Kingdom | Individually Significant First Mortgages | 3 Month GBP LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.35% | |||
Multifamily, Various, United Kingdom | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | $ 301,709 | |||
Carrying Amount | $ 299,822 | |||
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 | $ 303,516 | |||
Carrying Amount | $ 302,496 | |||
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% | |||
Hotel, International, Floating (3 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 33,265 | |||
Number of loans | loan | 3 | |||
Hotel, International, Floating (3 mortgages) | Aggregated First Mortgages | Three-month EURIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.90% | |||
Hotel, International, Floating (2 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 32,798 | |||
Number of loans | loan | 2 | |||
Hotel, International, Floating (2 mortgages) | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.00% | |||
Hotel, International, Floating (2 mortgages) | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.00% | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 95,277 | |||
Number of loans | loan | 4 | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.00% | |||
Hotel, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.80% | |||
Hotel, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 53,482 | |||
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) | 2.25% | |||
Hotel, Midwest, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.63% | |||
Hotel, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 159,787 | |||
Number of loans | loan | 4 | |||
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) | 10.00% | |||
Hotel, North East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 36,167 | |||
Number of loans | loan | 2 | |||
Hotel, North East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.55% | |||
Hotel, North East, 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% | |||
Hotel, South East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 59,462 | |||
Number of loans | loan | 4 | |||
Hotel, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.40% | |||
Hotel, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.40% | |||
Hotel, South East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 82,947 | |||
Number of loans | loan | 3 | |||
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) | 7.04% | |||
Hotel, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 158,577 | |||
Number of loans | loan | 8 | |||
Hotel, 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% | |||
Hotel, South West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.67% | |||
Hotel, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 364,603 | |||
Number of loans | loan | 9 | |||
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, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 414,745 | |||
Number of loans | loan | 17 | |||
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) | 9.50% | |||
Industrial, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 37,365 | |||
Weighted Average Coupon (as a percent) | 8.18% | |||
Number of loans | loan | 4 | |||
Industrial, South East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 2,337 | |||
Weighted Average Coupon (as a percent) | 8.18% | |||
Number of loans | loan | 1 | |||
Industrial, South East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 21,882 | |||
Number of loans | loan | 2 | |||
Industrial, South East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.75% | |||
Mixed Use, International, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 27,069 | |||
Weighted Average Coupon (as a percent) | 8.50% | |||
Number of loans | loan | 1 | |||
Mixed Use, International, Floating (2 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 98,646 | |||
Number of loans | loan | 2 | |||
Mixed Use, International, Floating (2 mortgages) | 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 (3 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 118,001 | |||
Number of loans | loan | 3 | |||
Mixed Use, International, Floating (3 mortgages) | Aggregated First Mortgages | 1-month GBP LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.15% | |||
Mixed Use, International, Floating (3 mortgages) | Aggregated First Mortgages | 1-month GBP LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 5.75% | |||
Mixed Use, International, Floating (1 mortgage) | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 56,515 | |||
Number of loans | loan | 1 | |||
Mixed Use, International, Floating (1 mortgage) | Aggregated Subordinated and Mezzanine Loans | Three-month EURIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.25% | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 3,796 | |||
Number of loans | loan | 1 | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.15% | |||
Mixed Use, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 108,133 | |||
Number of loans | loan | 4 | |||
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 | $ 25,628 | |||
Number of loans | loan | 2 | |||
Mixed Use 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) | 5.50% | |||
Mixed Use 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) | 10.25% | |||
Mixed Use, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 129,970 | |||
Number of loans | loan | 10 | |||
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) | 2.50% | |||
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) | 10.00% | |||
Mixed Use, South West, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 83,353 | |||
Number of loans | loan | 1 | |||
Mixed Use, South West, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 11.85% | |||
Mixed Use, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 208,279 | |||
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, International, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 10,655 | |||
Weighted Average Coupon (as a percent) | 8.00% | |||
Number of loans | loan | 1 | |||
Multi Family, Midwest, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 1,294 | |||
Weighted Average Coupon (as a percent) | 6.28% | |||
Number of loans | loan | 1 | |||
Multi-Family, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 89,970 | |||
Number of loans | loan | 2 | |||
Multi-Family, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 1.75% | |||
Multi-Family, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 5.75% | |||
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% | |||
Multi-Family, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 280,322 | |||
Number of loans | loan | 7 | |||
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) | 1.85% | |||
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) | 6.45% | |||
Multi-Family, North East, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 62,780 | |||
Number of loans | loan | 3 | |||
Multi-Family, North East, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Minimum | ||||
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 | 1-month LIBOR | Maximum | ||||
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 | $ 183,159 | |||
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) | 2.50% | |||
Multifamily, South West Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.00% | |||
Multi-Family, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 24,201 | |||
Number of loans | loan | 4 | |||
Multi-Family, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.75% | |||
Multi-Family, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.25% | |||
Office , International , Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 151,772 | |||
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 | $ 609,434 | |||
Number of loans | loan | 25 | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 1.75% | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.50% | |||
Office, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 129,593 | |||
Number of loans | loan | 6 | |||
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) | 9.75% | |||
Office, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 826,429 | |||
Number of loans | loan | 22 | |||
Office, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.80% | |||
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 , South East , Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 126,443 | |||
Number of loans | loan | 4 | |||
Office , 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% | |||
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 | $ 271,045 | |||
Number of loans | loan | 11 | |||
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) | 8.55% | |||
Office, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 631,645 | |||
Number of loans | loan | 19 | |||
Office, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 1.25% | |||
Office, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.60% | |||
Office, West, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 25,300 | |||
Number of loans | loan | 1 | |||
Office, West, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.67% | |||
Other, Midwest, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 59,729 | |||
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, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 40,583 | |||
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 | $ 76,583 | |||
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 | $ 24,356 | |||
Number of loans | loan | 4 | |||
Other, West, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.00% | |||
Other, West, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 61,577 | |||
Number of loans | loan | 2 | |||
Other, West, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 11.00% | |||
Office , International , Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 259,567 | |||
Number of loans | loan | 2 | |||
Office , International , Floating | Aggregated First Mortgages | 3 Month GBP LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.50% | |||
Office , International , Floating | Aggregated First Mortgages | 3 Month GBP LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.65% | |||
Office , International , Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 23,491 | |||
Number of loans | loan | 2 | |||
Office , International , Floating | Aggregated Subordinated and Mezzanine Loans | Three-month EURIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.95% | |||
Office , International , Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 26,780 | |||
Number of loans | loan | 2 | |||
Office , International , Floating | Aggregated First Mortgages | One-month EURIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.00% | |||
Office , International , Floating | Aggregated First Mortgages | One-month EURIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.80% | |||
Office, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 34,456 | |||
Weighted Average Coupon (as a percent) | 8.72% | |||
Number of loans | loan | 2 | |||
Office, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 8.72% | |||
Residential, North East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 31,855 | |||
Weighted Average Coupon (as a percent) | 8.00% | |||
Principal Amount of Delinquent Loans | $ 16,167 | |||
Number of loans | loan | 1 | |||
Residential, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 727,851 | |||
Principal Amount of Delinquent Loans | $ 49,149 | |||
Number of loans | loan | 16 | |||
Residential, 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% | |||
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 | $ 34,118 | |||
Number of loans | loan | 3 | |||
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 , Midwest ,Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 40,436 | |||
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, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 167,678 | |||
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) | 7.25% | |||
Retail, South West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 71,350 | |||
Number of loans | loan | 8 | |||
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, West, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 503 | |||
Weighted Average Coupon (as a percent) | 7.26% | |||
Number of loans | loan | 1 | |||
Multi-family, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 24,330 | |||
Number of loans | loan | 1 | |||
Office, South East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 7,245 | |||
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 | $ 764,622 | |||
Principal Amount of Delinquent Loans | $ 2,528 | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.40% | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 9.13% | |||
Residential, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 671,572 | |||
Principal Amount of Delinquent Loans | $ 5,619 | |||
Number of loans | loan | 1,197 | |||
Residential, Various, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.25% | |||
Residential, Various, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.00% | |||
Commercial and Residential Lending Segment and Investing and Servicing Segment | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 9,890,693 | $ 7,806,699 | $ 7,357,034 | $ 5,946,274 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | $ 9,794,254 | $ 7,382,641 | $ 5,946,274 |
Acquisitions/origination/additional funding | 9,094,714 | 6,723,144 | 5,500,539 |
Capitalized Interest | 110,632 | 63,047 | 74,339 |
Basis of loans sold | (4,311,390) | (3,082,347) | (1,634,717) |
Loan maturities/principal repayments | (3,304,838) | (3,272,666) | (2,658,522) |
Discount accretion/premium amortization | 35,387 | 38,099 | 39,084 |
Changes in fair value | 71,601 | 40,522 | 66,987 |
Unrealized foreign currency translation (loss) gain | 40,155 | (32,341) | 42,356 |
Loan loss provision, net | (7,126) | (34,821) | 5,458 |
Transfer to/from other asset classifications | (25,862) | (364) | 843 |
Balance at the end of the period | 11,470,224 | 9,794,254 | 7,382,641 |
Commercial and Residential Lending Segment and Investing and Servicing Segment | |||
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | 7,806,699 | 7,357,034 | 5,946,274 |
Acquisitions/origination/additional funding | 8,174,321 | 6,543,873 | 5,494,837 |
Capitalized Interest | 109,978 | 62,445 | 73,784 |
Basis of loans sold | (3,921,171) | (3,082,347) | (1,634,717) |
Loan maturities/principal repayments | (2,387,843) | (3,086,107) | (2,657,696) |
Discount accretion/premium amortization | 29,775 | 37,408 | 38,560 |
Changes in fair value | 71,601 | 40,522 | 66,987 |
Unrealized foreign currency translation (loss) gain | 38,050 | (26,645) | 42,356 |
Loan loss provision, net | (2,616) | (34,821) | 5,458 |
Loan foreclosures | (27,303) | ||
Transfer to/from other asset classifications | (798) | (4,663) | (18,809) |
Balance at the end of the period | $ 9,890,693 | $ 7,806,699 | $ 7,357,034 |