Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 19, 2021 | Jun. 30, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,069,113,253 | ||
Entity Common Stock, Shares Outstanding | 285,450,156 | ||
Entity Central Index Key | 0001465128 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 563,217 | $ 478,388 |
Restricted cash | 158,945 | 95,643 |
Loans held-for-investment, net of credit loss allowances of $77,444 and $33,415 ($90,684 and $671,572 held at fair value) | 11,087,073 | 10,586,074 |
Loans held-for-sale ($932,295 and $764,622 held at fair value) | 1,052,835 | 884,150 |
Investment securities, net of credit loss allowances of $5,675 and $0 ($198,053 and $239,600 held at fair value) | 736,658 | 810,238 |
Properties, net | 2,271,153 | 2,266,440 |
Intangible assets ($13,202 and $16,917 held at fair value) | 70,117 | 85,700 |
Investment in unconsolidated entities | 108,054 | 84,329 |
Goodwill | 259,846 | 259,846 |
Derivative assets | 40,555 | 28,943 |
Accrued interest receivable | 95,980 | 64,087 |
Other assets | 190,748 | 211,323 |
Total Assets | 80,873,509 | 78,042,336 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 206,845 | 212,006 |
Related-party payable | 39,170 | 40,925 |
Dividends payable | 137,959 | 137,427 |
Derivative liabilities | 41,324 | 8,740 |
Secured financing agreements, net | 10,146,190 | 8,906,048 |
Collateralized loan obligations, net | 930,554 | 928,060 |
Unsecured senior notes, net | 1,732,520 | 1,928,622 |
Total Liabilities | 76,010,933 | 72,905,322 |
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, 292,091,601 issued and 284,642,910 outstanding as of December 31, 2020 and 287,380,891 issued and 282,200,751 outstanding as of December 31, 2019 | 2,921 | 2,874 |
Additional paid-in capital | 5,209,739 | 5,132,532 |
Treasury stock (7,448,691 shares and 5,180,140 shares) | (138,022) | (104,194) |
Accumulated other comprehensive income | 43,993 | 50,932 |
Accumulated deficit | (629,733) | (381,719) |
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,488,898 | 4,700,425 |
Non-controlling interests in consolidated subsidiaries | 373,678 | 436,589 |
Total Equity | 4,862,576 | 5,137,014 |
Total Liabilities and Equity | 80,873,509 | 78,042,336 |
Primary beneficiary | ||
Assets: | ||
Total Assets | 64,238,328 | 62,187,175 |
Liabilities: | ||
Total Liabilities | $ 62,776,371 | $ 60,743,494 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loans held-for-investment, net, credit loss allowances | $ 77,444 | $ 33,611 |
Loans held-for-investment, net, held at fair value | 90,684 | 671,572 |
Loans-held-for-sale, held at fair value | 932,295 | 764,622 |
Investment securities, net, credit loss allowances | 5,675 | 0 |
Investment securities held at fair value | 198,053 | 239,600 |
Intangible assets held at fair value | $ 13,202 | $ 16,917 |
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 | 292,091,601 | 287,380,891 |
Common stock, shares outstanding | 284,642,910 | 282,200,751 |
Treasury stock, shares | 7,448,691 | 5,180,140 |
Total Assets | $ 80,873,509 | $ 78,042,336 |
Total Liabilities | 76,010,933 | 72,905,322 |
Total loans held-for-investment | ||
Loans held-for-investment, net, credit loss allowances | 77,444 | 33,415 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Interest income from loans | $ 751,943 | $ 724,013 | $ 620,543 |
Interest income from investment securities | 54,412 | 76,629 | 56,839 |
Servicing fees | 29,634 | 54,296 | 78,766 |
Rental income | 297,828 | 337,966 | 349,684 |
Other revenues | 2,338 | 3,515 | 3,448 |
Total revenues | 1,136,155 | 1,196,419 | 1,109,280 |
Costs and expenses: | |||
Management fees | 127,127 | 119,132 | 129,455 |
Interest expense | 419,763 | 508,729 | 408,188 |
General and administrative | 157,874 | 155,112 | 136,132 |
Acquisition and investment pursuit costs | 3,572 | 1,056 | 8,587 |
Costs of rental operations | 117,676 | 122,982 | 127,068 |
Depreciation and amortization | 94,405 | 113,322 | 132,649 |
Credit loss provision, net | 43,153 | 7,126 | 34,821 |
Other expense | 838 | 2,365 | 732 |
Total costs and expenses | 964,408 | 1,029,824 | 977,632 |
Other income (loss): | |||
Change in net assets related to consolidated VIEs | 78,258 | 236,309 | 165,892 |
Change in fair value of servicing rights | (3,715) | (3,640) | (10,202) |
Change in fair value of investment securities, net | 5,393 | 833 | 10,345 |
Change in fair value of mortgage loans, net | 133,124 | 71,601 | 40,522 |
Earnings (loss) from unconsolidated entities | 37,317 | (101,354) | 10,540 |
Gain on sale of investments and other assets, net | 7,310 | 188,028 | 59,044 |
(Loss) gain on derivative financial instruments, net | (82,178) | (6,310) | 34,603 |
Foreign currency gain (loss), net | 42,395 | 17,582 | (9,245) |
Total other-than-temporary impairment ("OTTI") | (267) | ||
Noncredit portion of OTTI recognized in other comprehensive income | 267 | ||
Loss on extinguishment of debt | (3,654) | (19,270) | (5,808) |
Other income (loss), net | 281 | (207) | (812) |
Total other income | 214,531 | 383,572 | 294,879 |
Income before income taxes | 386,278 | 550,167 | 426,527 |
Income tax provision | (20,197) | (13,232) | (15,330) |
Net income | 366,081 | 536,935 | 411,197 |
Net income attributable to non-controlling interests | (34,392) | (27,271) | (25,367) |
Net income attributable to Starwood Property Trust, Inc. | $ 331,689 | $ 509,664 | $ 385,830 |
Earnings per share data attributable to Starwood Property Trust, Inc.: | |||
Basic (in dollars per share) | $ 1.16 | $ 1.81 | $ 1.44 |
Diluted (in dollars per share) | $ 1.16 | $ 1.79 | $ 1.42 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 366,081 | $ 536,935 | $ 411,197 |
Other comprehensive loss (net change by component): | |||
Cash flow hedges | (25) | ||
Available-for-sale securities | (6,939) | (2,519) | (4,374) |
Foreign currency translation | (5,209) | (6,865) | |
Other comprehensive loss | (6,939) | (7,728) | (11,264) |
Comprehensive income | 359,142 | 529,207 | 399,933 |
Less: Comprehensive income attributable to non-controlling interests | (34,392) | (27,271) | (25,367) |
Comprehensive income attributable to Starwood Property Trust, Inc. | $ 324,750 | $ 501,936 | $ 374,566 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total Starwood Property Trust, Inc. Stockholders' Equity2019 Notes | Total Starwood Property Trust, Inc. Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Total Starwood Property Trust, Inc. Stockholders' Equity | Common stock2019 Notes | Common stock | Additional Paid-In Capital2019 Notes | Additional Paid-In Capital | Treasury Stock | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | Accumulated Other Comprehensive Income | Non-Controlling Interests | 2019 Notes | Cumulative Effect, Period of Adoption, Adjustment | Total |
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 | |||||||||||||
Share-based compensation | 22,758 | $ 14 | 22,744 | $ 22,758 | |||||||||||
Share-based compensation (in shares) | 1,421,979 | ||||||||||||||
Manager fees paid in stock | 20,792 | $ 10 | 20,782 | 20,792 | |||||||||||
Manager 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 | |||||||||||||
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 | 21,070 | $ 10 | 21,060 | (21,070) | 440,966 | ||||||||||
Redemption of Class A Units (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 fees paid in stock | 11,915 | $ 5 | 11,910 | 11,915 | |||||||||||
Manager 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 | $ (32,286) | 4,700,425 | $ 2,874 | 5,132,532 | $ (104,194) | $ (32,286) | (381,719) | 50,932 | 436,589 | $ (32,286) | $ 5,137,014 | ||||
Balance (in shares) at Dec. 31, 2019 | 287,380,891 | 5,180,140 | 287,380,891 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Proceeds from DRIP Plan | 1,098 | $ 1 | 1,097 | $ 1,098 | |||||||||||
Proceeds from DRIP Plan (in shares) | 71,776 | ||||||||||||||
Redemption of Class A Units | 8,964 | $ 4 | 8,960 | (10,273) | (1,309) | ||||||||||
Redemption of Class A Units (in shares) | 409,712 | ||||||||||||||
Equity offering costs | (95) | (95) | (95) | ||||||||||||
Common stock repurchased | (33,828) | $ (33,828) | $ (33,828) | ||||||||||||
Common stock repurchased (in shares) | 2,268,551 | 2,268,551 | |||||||||||||
Share-based compensation | 31,241 | $ 18 | 31,223 | $ 31,241 | |||||||||||
Share-based compensation (in shares) | 1,807,990 | ||||||||||||||
Manager fees paid in stock | 36,046 | $ 24 | 36,022 | 36,046 | |||||||||||
Manager fee paid in stock (in shares) | 2,421,232 | ||||||||||||||
Net income | 331,689 | 331,689 | 34,392 | 366,081 | |||||||||||
Dividends declared | (547,417) | (547,417) | (547,417) | ||||||||||||
Other comprehensive loss, net | (6,939) | (6,939) | (6,939) | ||||||||||||
VIE non-controlling interests | (2,178) | (2,178) | |||||||||||||
Contributions from non-controlling interests | 13,351 | 13,351 | |||||||||||||
Distributions to non-controlling interests | (98,203) | (98,203) | |||||||||||||
Balance at Dec. 31, 2020 | $ 4,488,898 | $ 2,921 | $ 5,209,739 | $ (138,022) | $ (629,733) | $ 43,993 | $ 373,678 | $ 4,862,576 | |||||||
Balance (in shares) at Dec. 31, 2020 | 292,091,601 | 7,448,691 | 292,091,601 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | Dec. 09, 2020 | Sep. 16, 2020 | Jun. 16, 2020 | 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 | Dec. 31, 2020 | 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 | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Cash Flows from Operating Activities: | |||
Net income | $ 366,081 | $ 536,935 | $ 411,197 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of deferred financing costs, premiums and discounts on secured borrowings | 40,131 | 36,088 | 27,832 |
Amortization of discounts and deferred financing costs on unsecured senior notes | 7,939 | 7,760 | 11,785 |
Accretion of net discount on investment securities | (12,818) | (11,791) | (15,253) |
Accretion of net deferred loan fees and discounts | (42,199) | (35,387) | (38,099) |
Share-based compensation | 31,241 | 36,155 | 22,758 |
Manager fees paid in stock | 36,046 | 11,915 | 20,792 |
Change in fair value of investment securities | (5,393) | (833) | (10,345) |
Change in fair value of consolidated VIEs | 58,160 | (67,798) | (17,408) |
Change in fair value of servicing rights | 3,715 | 3,640 | 10,202 |
Change in fair value of loans | (133,124) | (71,601) | (40,522) |
Change in fair value of derivatives | 88,544 | 11,441 | (30,828) |
Foreign currency (gain) loss, net | (42,395) | (17,582) | 9,158 |
Gain on sale of investments and other assets | (7,310) | (188,028) | (59,044) |
Impairment charges on properties and related intangibles | 1,494 | 1,869 | |
Credit loss provision, net | 43,153 | 7,126 | 34,821 |
Depreciation and amortization | 94,154 | 113,394 | 130,838 |
(Earnings) loss from unconsolidated entities | (37,317) | 101,354 | (10,540) |
Distributions of earnings from unconsolidated entities | 2,978 | 11,631 | 5,917 |
Loss on extinguishment of debt | 3,654 | 19,270 | 5,808 |
Origination and purchase of loans held-for-sale, net of principal collections | (2,074,678) | (3,543,503) | (2,105,232) |
Proceeds from sale of loans held-for-sale | 2,802,118 | 3,177,640 | 2,246,989 |
Changes in operating assets and liabilities: | |||
Related-party payable, net | (1,755) | (3,118) | 1,674 |
Accrued and capitalized interest receivable, less purchased interest | (175,287) | (114,156) | (62,261) |
Other assets | 282 | (29,787) | 8,207 |
Accounts payable, accrued expenses and other liabilities | (372) | (5,458) | 25,155 |
Net cash provided by (used in) operating activities | 1,045,548 | (13,199) | 585,470 |
Cash Flows from Investing Activities: | |||
Origination and purchase of loans held-for-investment | (3,133,196) | (5,473,399) | (4,428,891) |
Proceeds from principal collections on loans | 1,696,244 | 3,132,368 | 3,057,430 |
Proceeds from loans sold | 504,231 | 1,141,411 | 835,849 |
Purchase and funding of investment securities | (22,408) | (98,258) | (492,400) |
Proceeds from sales of investment securities | 7,940 | 7,326 | 16,427 |
Proceeds from principal collections on investment securities | 83,533 | 205,660 | 382,924 |
Infrastructure lending business combination | (2,158,553) | ||
Proceeds from sales of real estate and related businesses, net of cash transferred | 24,541 | 343,896 | 311,874 |
Purchases and additions to properties and other assets | (25,164) | (30,865) | (54,772) |
Investment in unconsolidated entities | (3,133) | (18,055) | (3,100) |
Proceeds from sale of interest in unconsolidated entities | 10,313 | ||
Distribution of capital from unconsolidated entities | 3,422 | 18,127 | 21,461 |
Payments for purchase or termination of derivatives | (74,801) | (42,835) | (29,581) |
Proceeds from termination of derivatives | 16,673 | 38,756 | 20,523 |
Net cash used in investing activities | (911,805) | (775,868) | (2,520,809) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings | 7,100,563 | 10,167,339 | 9,412,715 |
Principal repayments on and repurchases of borrowings | (6,137,778) | (8,671,085) | (6,360,610) |
Payment of deferred financing costs | (27,122) | (72,438) | (67,218) |
Proceeds from common stock issuances | 1,098 | 767 | 608 |
Payment of equity offering costs | (95) | (27) | (22) |
Payment of dividends | (546,885) | (538,424) | (509,966) |
Contributions from non-controlling interests | 11,775 | 183,520 | 13,407 |
Distributions to non-controlling interests | (99,512) | (49,958) | (256,404) |
Purchase of treasury stock | (33,828) | (12,090) | |
Issuance of debt of consolidated VIEs | 187,494 | 184,540 | 102,474 |
Repayment of debt of consolidated VIEs | (522,348) | (373,155) | (410,453) |
Distributions of cash from consolidated VIEs | 79,921 | 45,642 | 92,283 |
Net cash provided by financing activities | 13,283 | 876,721 | 2,004,724 |
Net increase in cash, cash equivalents and restricted cash | 147,026 | 87,654 | 69,385 |
Cash, cash equivalents and restricted cash, beginning of year | 574,031 | 487,865 | 418,273 |
Effect of exchange rate changes on cash | 1,105 | (1,488) | 207 |
Cash, cash equivalents and restricted cash, end of year | 722,162 | 574,031 | 487,865 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 379,949 | 481,483 | 337,605 |
Income taxes paid | 11,369 | 11,284 | 10,900 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividends declared, but not yet paid | 138,075 | 136,715 | 133,237 |
Consolidation of VIEs (VIE asset/liability additions) | 4,665,636 | 10,368,817 | 9,885,200 |
Deconsolidation of VIEs (VIE asset/liability reductions) | 32,270 | 377,071 | 1,649,485 |
Reclassification of loans held-for-investment to loans held-for-sale | 749,995 | ||
Reclassification of loans held-for-sale to loans held-for-investment | 104,327 | 340,948 | |
Transfer of loans from VIE assets to loans held-for-sale upon redemption of a consolidated RMBS trust | 176,614 | ||
Net assets acquired through control, foreclosure or conversion to equity interest | 34,601 | 44,426 | |
Loan principal collections temporarily held at master servicer | 8,538 | 21,070 | |
Redemption of Class A Units | (1,309) | 440,966 | |
Contribution of Woodstar II Portfolio net assets from non-controlling interests | 360,049 | ||
Assets of Ireland real estate subsidiary sold, net of cash | 75,525 | 271,243 | |
Liabilities of Ireland real estate subsidiary sold | 74,692 | ||
Settlement of 2019 Convertible Notes in shares | 71,488 | 53,278 | |
Settlement of loans transferred as secured borrowings | 9,626 | ||
Lease liabilities arising from obtaining right-of-use assets | 8,613 | 27,737 | |
Net assets acquired from consolidated VIEs | $ 1,576 | $ 2,877 | 416,626 |
Fair value of assets acquired, net of cash and restricted cash | 2,167,652 | ||
Fair value of liabilities assumed | $ 9,099 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 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 first mortgages, non-agency residential mortgages (“residential loans”), 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). Our residential loans are secured by a first mortgage lien on residential property and consist of non-agency residential mortgage loans that are not guaranteed by any U.S. Government agency or federally chartered corporation. ● 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, 2020 | |
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, a 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, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding 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 non-performance 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 loans held-for-investment were made in order to maintain consistency across all our residential 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 reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements. Business Combinations Under ASC 805, Business Combinations 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) cash collateral associated with derivative financial instruments, (ii) 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 and (iii) funds held on behalf of borrowers and tenants. Loans Held-for-Investment Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless we have elected to apply the fair value option at purchase. 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. 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 (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM 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 AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. Credit Losses Loans and Debt Securities Measured at Amortized Cost ASC 326, Financial Instruments – Credit Losses , became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL 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 under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our consolidated balance sheet), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. Our adoption of the CECL model resulted in a As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 5 for further discussion of our methodologies. We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration 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 or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral. Available-for-Sale Debt Securities Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. As of the January 1, 2020 effective date, no such credit loss allowance gross-up was required on our AFS debt securities with PCD due to their individual unrealized gain positions as of that date. Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment. 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. 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 sheets as of December 31, 2020 and 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 election 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. Our other equity investments set forth in Note 8 do not have readily determinable fair values. Therefore, we have elected the fair value practicability exception under ASC 321, Equity Securities We review our equity method and other investments not subject to the fair value practicability election for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our investments under the fair value practicability election, we perform a qualitative assessment to identify impairment at the end of each reporting period. 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, 2020 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 Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment 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. Gene |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 3. Acquisitions and Divestiture s 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 14 remaining commercial real estate properties acquired from CMBS trusts prior to December 31, 2018 for an aggregate acquisition price of $207.4 million, comprise the Investing and Servicing Segment Property Portfolio (the “REIS Equity Portfolio”). During the year ended December 31, 2018, our Investing and Servicing Segment acquired During the year ended December 31, 2020, we sold a property within the REIS Equity Portfolio for $24.1 million. In connection with this sale, we recognized a gain of $7.4 million within gain on sale of investments and other assets in our consolidated statement of operations. 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 statement 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 $26.6 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $5.1 million was attributable to non-controlling interests. One of these properties was acquired by a third party which already held a $0.3 million non-controlling interest in the property. Ireland Portfolio Sale On December 23, 2019, we sold the U.S. entity which held the net assets related to our Ireland Portfolio, which was comprised of 11 office properties and one multifamily property all located in Dublin Ireland. 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 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. There were no properties sold within the Ireland Portfolio during the years ended December 31, 2020 and 2018. Infrastructure Lending Segment On September 19, 2018, we acquired the project finance origination, underwriting and capital markets business of GE Capital Global Holdings, LLC (“GE Capital”) for approximately $2.0 billion (the “Infrastructure Lending Segment”) and on October 15, 2018, we acquired two additional senior secured project finance loans from GE Capital for $147.1 million. In total, the business included $2.1 billion of funded senior secured project finance loans and investment securities and $466.3 million of unfunded lending commitments (the “Infrastructure Lending Portfolio”) which are secured primarily by natural gas and renewable power facilities. We utilized $1.7 billion in new financing in order to fund the acquisition. The 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 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, 2020, 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 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, 2020 and 2019. 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. In doing so, we recorded all identifiable assets acquired and liabilities assumed at fair value as of the acquisition dates. The following table summarizes the identified assets acquired and liabilities assumed as of the acquisition dates (amounts in thousands): 2018 Infrastructure Assets acquired: Lending Segment Loans held-for-investment $ 1,649,630 Loans held-for-sale 319,710 Investment securities 65,060 Accrued interest receivable 13,843 Total identifiable assets acquired 2,048,243 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 Derivative liabilities 282 Total liabilities assumed 9,099 Net assets acquired $ 2,039,144 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 year ended December 31, 2018, assuming the Infrastructure Lending Segment was acquired on January 1, 2018, are as follows (amounts in thousands, except per share amounts): For the Year Ended (Unaudited) December 31, 2018 Revenues $ 1,182,892 Net income attributable to STWD 392,505 Net income per share - Basic 1.47 Net income per share - Diluted 1.44 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Cash. | |
Restricted Cash | 4. Restricted Cas h A summary of our restricted cash as of December 31, 2020 and 2019 is as follows (amounts in thousands): As of December 31, 2020 2019 Cash collateral for derivative financial instruments $ 89,323 $ 37,912 Cash restricted by lender 42,992 40,818 Funds held on behalf of borrowers and tenants 19,517 11,903 Other restricted cash 7,113 5,010 $ 158,945 $ 95,643 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Loans | 5. Loan s Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2020 Value Amount Coupon (1) (years)(2) Loans held-for-investment: Commercial loans: First mortgages (3) $ 8,931,772 $ 8,978,373 5.3 % 1.5 Subordinated mortgages (4) 71,185 72,257 8.8 % 2.8 Mezzanine loans (3) 620,319 619,352 10.1 % 1.6 Other 30,284 33,626 8.9 % 1.8 Total commercial loans 9,653,560 9,703,608 Infrastructure first priority loans (5) 1,420,273 1,439,940 4.4 % 4.3 Residential loans, fair value option (6) 90,684 86,796 6.0 % N/A (7) Total loans held-for-investment 11,164,517 11,230,344 Loans held-for-sale: Residential, fair value option (6) 841,963 820,807 6.0 % N/A (7) Commercial, fair value option 90,332 90,789 3.9 % 10.0 Infrastructure, lower of cost or fair value (5) 120,540 120,900 3.1 % 3.2 Total loans held-for-sale 1,052,835 1,032,496 Total gross loans 12,217,352 $ 12,262,840 Credit loss allowances: Commercial loans held-for-investment (69,611) Infrastructure loans held-for-investment (7,833) Total allowances (77,444) Total net loans $ 12,139,908 December 31, 2019 Loans held-for-investment: Commercial loans: First mortgages (3) $ 7,928,026 $ 7,962,788 5.8 % 2.0 Subordinated mortgages (4) 75,724 77,055 8.8 % 3.4 Mezzanine loans (3) 484,164 484,408 11.0 % 1.9 Other 62,555 66,525 8.2 % 1.6 Total commercial loans 8,550,469 8,590,776 Infrastructure first priority loans 1,397,448 1,416,164 5.6 % 4.9 Residential loans, fair value option (6) 671,572 654,925 6.1 % N/A (7) Total loans held-for-investment 10,619,489 10,661,865 Loans held-for-sale: Residential, fair value option (6) 605,384 587,144 6.2 % N/A (7) Commercial, fair value option 159,238 160,635 3.9 % 10.0 Infrastructure, lower of cost or fair value 119,724 121,271 3.3 % 2.1 Total loans held-for-sale 884,346 869,050 Total gross loans 11,503,835 $ 11,530,915 Credit loss allowances: Commercial loans held-for-investment (33,415) Infrastructure loans held-for-investment — Total held-for-investment allowances (33,415) Infrastructure loans held-for-sale with a fair value allowance (196) Total allowances (33,611) Total net loans $ 11,470,224 (1) Calculated using LIBOR or other applicable index rates as of December 31, 2020 and 2019 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 $877.3 million and $967.0 million being classified as first mortgages as of December 31, 2020 and 2019, 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, 2020, $104.3 million of infrastructure loans held-for-sale were reclassified into loans held-for-investment and $174.6 million of infrastructure loans held-for-investment were reclassified into loans held-for-sale. (6) During the year ended December 31, 2020, $575.3 million of residential loans held-for-investment were reclassified into loans held-for-sale. During the year ended December 31, 2019, $340.9 million of residential loans held-for-sale were reclassified into residential loans held-for-investment. (7) Residential loans have a weighted average remaining contractual life of 27.9 years and 29.3 years as of December 31, 2020 and 2019, respectively. 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, 2020 and 2019. As of December 31, 2020, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average December 31, 2020 Value Spread Above Index Commercial loans $ 9,003,590 4.3 % Infrastructure loans 1,420,273 3.8 % Total variable rate loans held-for-investment $ 10,423,863 4.2 % Credit Loss Allowances As discussed in Note 2, we do not have a history of realized credit losses on our HFI loans and HTM securities, so we have subscribed to third party database services to provide us with industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. For our commercial loans, we utilize a loan loss model that is widely used among banks and commercial mortgage REITs and is marketed by a leading CMBS data analytics provider. It employs logistic regression to forecast expected losses at the loan level based on a commercial real estate loan securitization database that contains activity dating back to 1998. We provide specific loan-level inputs which include loan-to-stabilized-value (“LTV”) and debt service coverage ratio (DSCR) metrics, as well as principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates and future fundings. We also select from a group of independent five-year macroeconomic forecasts included in the model that are updated regularly based on current economic trends. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our commercial loans, as set forth in the credit quality indicator table below. A lower LTV ratio typically indicates a lower credit loss risk. The macroeconomic forecasts do not differentiate among property types or asset classes. Instead, these forecasts reference general macroeconomic growth factors which apply broadly across all assets. However, the COVID-19 pandemic has had a more negative impact on certain property types, principally retail and hospitality, which have withstood extended government mandated closures, and more recently office, which is experiencing lower demand due to remote working arrangements. The broad macroeconomic forecasts do not account for such differentiation. Accordingly, we have selected a more adverse macroeconomic recovery forecast related to these property types in determining our credit loss allowance. For our infrastructure loans, we utilize a database of historical infrastructure loan performance that is shared among a consortium of banks and other lenders and compiled by a major bond credit rating agency. The database is representative of industry-wide project finance activity dating back to 1983. We derive historical loss rates from the database filtered by industry, sub-industry, term and construction status for each of our infrastructure loans. Those historical loss rates reflect global economic cycles over a long period of time as well as average recovery rates. We categorize the results between the power and oil and gas industries, which we consider the most significant indicator of credit quality for our infrastructure loans, as set forth in the credit quality indicator table below. As discussed in Note 2, we use a discounted cash flow or collateral value approach, rather than the industry loan loss approach described above, to determine credit loss allowances for any credit deteriorated loans. 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 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. The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of December 31, 2020 (dollars in thousands): Term Loans Revolving Loans Total Credit Amortized Cost Basis by Origination Year Amortized Cost Amortized Loss As of December 31, 2020 2020 2019 2018 2017 2016 Prior Total Cost Basis Allowance Commercial loans: Credit quality indicator: LTV < 60% $ 751,090 $ 1,087,183 $ 1,022,495 $ 1,062,362 $ 134,420 $ 267,650 $ — $ 4,325,200 $ 8,801 LTV 60% - 70% 301,225 1,640,009 1,625,379 36,581 53,482 39,195 — 3,695,871 24,842 LTV > 70% 399,968 632,292 312,640 141,002 — 75,340 — 1,561,242 19,946 Credit deteriorated — — 28,986 7,755 — 11,977 — 48,718 16,022 Defeased and other — — — — — 22,529 — 22,529 — Total commercial $ 1,452,283 $ 3,359,484 $ 2,989,500 $ 1,247,700 $ 187,902 $ 416,691 $ — $ 9,653,560 $ 69,611 Infrastructure loans: Credit quality indicator: Power $ 74,817 $ 222,733 $ 268,960 $ 109,604 $ 166,922 $ 211,795 $ 13,963 $ 1,068,794 $ 4,295 Oil and gas — 244,769 101,677 — — — 5,033 351,479 3,538 Total infrastructure $ 74,817 $ 467,502 $ 370,637 $ 109,604 $ 166,922 $ 211,795 $ 18,996 $ 1,420,273 $ 7,833 Residential loans held-for-investment, fair value option 90,684 — Loans held-for-sale 1,052,835 — Total gross loans $ 12,217,352 $ 77,444 As of December 31, 2020, we had credit deteriorated commercial loans with an amortized cost basis of $48.7 million, of which $29.0 million had no credit loss allowance. These loans were on nonaccrual status, with the cost recovery method of interest income recognition applied. In addition to these credit deteriorated loans, we had a $184.1 million commercial loan and $18.6 million of residential loans that were 90 days or greater past due at December 31, 2020. Any loans which are modified to provide for the deferral of interest are not considered past due and are accounted for in accordance with our revenue recognition policy on interest income. The following table presents the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Loans Held-for-Investment Held-for-Sale Total Year Ended December 31, 2020 Commercial Infrastructure Infrastructure Funded Loans Credit loss allowance at December 31, 2019 $ 33,415 $ — $ 196 $ 33,611 Cumulative effect of ASC 326 effective January 1, 2020 10,112 10,328 — 20,440 Credit loss provision (reversal), net 48,711 (2,495) (125) 46,091 Charge-offs (22,627) (1) — (71) (22,698) Recoveries — — — — Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ — $ 77,444 (1) Primarily relates to the charge-off of the credit loss allowance relating to credit deteriorated first mortgage and contiguous mezzanine loans that were eliminated as a result of consolidating the net assets of the borrower entities upon exercising control over their pledged equity interests in October 2020. Unfunded Commitments Credit Loss Allowance (1) Loans Held-for-Investment Year Ended December 31, 2020 Commercial Infrastructure Total Credit loss allowance at December 31, 2019 $ — $ — $ — Cumulative effect of ASC 326 effective January 1, 2020 8,348 2,205 10,553 Credit loss reversal, net (3,090) (1,393) (4,483) Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ 6,070 Memo: Unfunded commitments as of December 31, 2020 (2) $ 1,341,939 $ 79,593 $ 1,421,532 (1) Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheet. (2) Represents amounts expected to be funded (see Note 22). Loan Portfolio Activity The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Year Ended December 31, 2020 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2019 $ 8,517,054 $ 1,397,448 $ 671,572 $ 884,150 $ 11,470,224 Cumulative effect of ASC 326 effective January 1, 2020 (10,112) (10,328) — — (20,440) Acquisitions/originations/additional funding 2,753,782 278,694 100,720 2,204,203 5,337,399 Capitalized interest (1) 143,818 195 — — 144,013 Basis of loans sold (2) (443,793) — (604) (2,862,606) (3,307,003) Loan maturities/principal repayments (1,398,991) (189,288) (90,273) (142,644) (1,821,196) Discount accretion/premium amortization 39,642 2,447 — 110 42,199 Changes in fair value — — (15,382) 148,506 133,124 Unrealized foreign currency translation gain (loss) 102,748 1,096 — (1,291) 102,553 Credit loss (provision) reversal, net (48,711) 2,495 — 125 (46,091) Transfer to/from other asset classifications (71,488) (3) (70,319) (575,349) 822,282 (4) 105,126 Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Loans Transferred Held-for-Investment Loans As Secured Year Ended December 31, 2019 Commercial Infrastructure Residential Held-for-Sale Loans Borrowings Total Loans Balance at December 31, 2018 $ 7,075,577 $ 1,456,779 — $ 1,187,552 $ 74,346 $ 9,794,254 Acquisitions/originations/additional funding 4,161,584 902,053 394,697 3,636,380 — 9,094,714 Capitalized interest (1) 110,632 — — — — 110,632 Basis of loans sold (2) (743,425) — (106) (3,567,859) — (4,311,390) Loan maturities/principal repayments (2,172,068) (832,998) (62,704) (162,376) (74,692) (3,304,838) Discount accretion/premium amortization 30,128 2,072 — 2,841 346 35,387 Changes in fair value — — (1,314) 72,915 — 71,601 Unrealized foreign currency translation (loss) gain 38,050 — — 2,105 — 40,155 Credit loss provision, net (2,616) (3,314) — (1,196) — (7,126) Loan foreclosures (27,303) — — — — (27,303) Transfer to/from other asset classifications 46,495 (127,144) 340,999 (286,212) — (25,862) Balance at December 31, 2019 $ 8,517,054 $ 1,397,448 $ 671,572 $ 884,150 $ — $ 11,470,224 Loans Transferred Held-for-Investment Loans As Secured Year Ended December 31, 2018 Commercial Infrastructure Residential Held-for-Sale Loans Borrowings Total Loans Balance at December 31, 2017 $ 6,561,296 $ — $ 1,199 $ 745,743 $ 74,403 $ 7,382,641 Acquisitions/originations/additional funding 4,300,406 131,115 146 2,291,477 — 6,723,144 Acquisition of Infrastructure Lending Portfolio — 1,458,835 — 510,505 — 1,969,340 Capitalized interest (1) 63,047 — — — — 63,047 Basis of loans sold (2) (835,358) — — (2,246,989) — (3,082,347) Loan maturities/principal repayments (2,943,602) (133,271) (1,345) (194,140) (308) (3,272,666) Discount accretion/premium amortization 37,748 100 — — 251 38,099 Changes in fair value — — — 40,522 — 40,522 Unrealized foreign currency translation (loss) gain (26,645) — — (5,696) — (32,341) Credit loss provision, net (34,821) — — — — (34,821) Transfer to/from other asset classifications (46,494) — — 46,130 — (364) Balance at December 31, 2018 $ 7,075,577 $ 1,456,779 $ — $ 1,187,552 $ 74,346 $ 9,794,254 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 12 for additional disclosure on these transactions. (3) Represents the net carrying value of credit deteriorated first mortgage and contiguous mezzanine loans related to a residential conversion project located in New York City that is eliminated as a result of consolidating the net assets of the borrower entities upon exercising control over their pledged equity interests in October 2020. (4) Includes $176.6 million of residential loans transferred from VIE assets upon redemption of a consolidated RMBS trust . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investment Securities | |
Investment Securities | 6. Investment Securitie s Investment securities were comprised of the following as of December 31, 2020 and 2019 (amounts in thousands): Carrying Value as of December 31, 2020 2019 RMBS, available-for-sale $ 167,349 $ 189,576 RMBS, fair value option (1) 235,997 147,034 CMBS, fair value option (1), (2) 1,209,030 1,295,363 HTM debt securities, amortized cost net of credit loss allowance of $5,675 and $0 538,605 570,638 Equity security, fair value 11,247 12,664 Subtotal — 2,162,228 2,215,275 VIE eliminations (1) (1,425,570) (1,405,037) Total investment securities $ 736,658 $ 810,238 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $179.5 million and $186.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2020 and 2019, respectively. Purchases, sales and principal collections for all investment securities were as follows (amounts in thousands): RMBS, RMBS, fair CMBS, fair HTM Securitization available-for-sale value option value option Securities VIEs (1) Total Year Ended December 31, 2020 Purchases/fundings $ — $ 282,368 $ 49,416 $ 22,408 $ (331,784) $ 22,408 Sales — 135,567 37,867 — (165,494) 7,940 Principal collections 26,000 44,197 30,079 52,704 (69,447) 83,533 Redemptions — 10,474 — — (10,474) — 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 (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, 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, 2020 and 2019. 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, 2020 and 2019 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Credit Gross Gross Net Amortized Loss Net Unrealized Unrealized Fair Value Cost Allowance Basis Gains Losses Adjustment Fair Value December 31, 2020 RMBS $ 123,292 $ — $ 123,292 $ 44,123 $ (66) $ 44,057 $ 167,349 December 31, 2019 RMBS $ 138,580 N/A $ 138,580 $ 51,310 $ (314) $ 50,996 $ 189,576 Weighted Average Coupon (1) Weighted Average WAL December 31, 2020 RMBS 1.3 % B+ 5.7 (1) Calculated using the December 31, 2020 one-month LIBOR rate of 0.144% for floating rate securities. (2) Represents the remaining WAL of each respective group of securities as of the 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, 2020, approximately $144.9 million, or 86.6%, of RMBS were variable rate. We purchased all of the RMBS at a discount, a portion of which is 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. We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.8 million, $1.5 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, 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, 2020 and 2019. 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, 2020 and 2019, and for which an allowance for credit losses has not been recorded (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, 2020 RMBS $ 438 $ 1,195 $ (25) $ (41) As of December 31, 2019 RMBS $ — $ 1,380 $ — $ (314) As of December 31, 2020 and 2019, there were two securities and one security with unrealized losses reflected in the table above. After evaluating the securities and recording adjustments for credit losses, we concluded that the remaining unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses 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 net amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or credit losses 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, 2020, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.2 billion and $2.8 billion, respectively. As of December 31, 2020, 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 $236.0 million and $142.1 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 $19.5 million at December 31, 2020) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities. As of December 31, 2020, $96.9 million of our CMBS were variable rate and none of our RMBS were variable rate. HTM Debt Securities, Amortized Cost The table below summarizes our investments in HTM debt securities as of December 31, 2020 and 2019 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Cost Basis Allowance Amount Holding Gains Holding Losses Fair Value December 31, 2020 CMBS $ 339,059 $ — $ 339,059 $ — $ (23,286) $ 315,773 Preferred interests 166,614 (2,749) 163,865 432 (913) 163,384 Infrastructure bonds 38,607 (2,926) 35,681 415 — 36,096 Total $ 544,280 $ (5,675) $ 538,605 $ 847 $ (24,199) $ 515,253 December 31, 2019 CMBS $ 383,473 $ — $ 383,473 $ 946 $ (3,001) $ 381,418 Preferred interests 142,012 — 142,012 1,148 (353) 142,807 Infrastructure bonds 45,153 — 45,153 — (651) 44,502 Total $ 570,638 $ — $ 570,638 $ 2,094 $ (4,005) $ 568,727 The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands): Total HTM Preferred Infrastructure Credit Loss Interests Bonds Allowance Year Ended December 31, 2020 Credit loss allowance at December 31, 2019 $ — $ — $ — Cumulative effect of ASC 326 effective January 1, 2020: Beginning accumulated deficit charge 1,114 179 1,293 Gross-up of PCD bond amortized cost basis — 2,837 2,837 Credit loss provision (reversal), net 1,635 (90) 1,545 Credit loss allowance at December 31, 2020 $ 2,749 $ 2,926 $ 5,675 The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2020 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 339,059 $ — $ — $ 339,059 One to three years — 163,865 — 163,865 Three to five years — — — — Thereafter — — 35,681 35,681 Total $ 339,059 $ 163,865 $ 35,681 $ 538,605 Equity Security, Fair Value During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. The fair value of the investment remeasured in USD was $11.2 million and $12.7 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020, our shares represent an approximate 2% interest in SEREF. |
Properties
Properties | 12 Months Ended |
Dec. 31, 2020 | |
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 $635.2 million and debt of $572.5 million as of December 31, 2020. 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. We acquired eight of the 27 affordable housing communities in December 2017, with the final 19 communities acquired during the year ended December 31, 2018. The Woodstar II Portfolio includes total gross properties and lease intangibles of $610.0 million and debt of $437.0 million as of December 31, 2020. Refer to Note 3 for further discussion of the Woodstar II Portfolio. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 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 we 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 $192.7 million as of December 31, 2020. 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 15 commercial real estate properties and one equity interest in an unconsolidated commercial real estate property which we acquired from CMBS trusts over the previous five years. The REIS Equity Portfolio includes total gross properties and lease intangibles of $269.5 million and debt of $192.8 million as of December 31, 2020. Refer to Note 3 for further discussion of the REIS Equity Portfolio. The table below summarizes our properties held as of December 31, 2020 and December 31, 2019 (dollars in thousands): Depreciable Life December 31, 2020 December 31, 2019 Property Segment Land and land improvements 0 – 15 years $ 484,846 $ 484,397 Buildings and building improvements 5 – 45 years 1,690,701 1,687,756 Furniture & fixtures 3 – 7 years 59,632 52,567 Investing and Servicing Segment Land and land improvements 0 – 15 years 50,585 54,052 Buildings and building improvements 3 – 40 years 179,014 182,048 Furniture & fixtures 2 – 5 years 2,606 2,139 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 10 years 11,416 11,386 Buildings and building improvements 10 – 23 years 19,251 16,285 Construction in progress (2) N/A 75,245 — Properties, cost 2,573,296 2,490,630 Less: accumulated depreciation (302,143) (224,190) Properties, net $ 2,271,153 $ 2,266,440 (1) Represents properties acquired through loan foreclosure or exercise of control over loan borrower pledged equity interests. (2) Represents assets related to the borrower entity that we exercised control over. Refer to Note 5 for further detail. an 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 year ended December 31, 2018, we sold 16 operating properties for $313.3 million. In connection with these sales, we recognized a total gain of $55.1 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $5.1 million was attributable to non-controlling interest. One of these properties was acquired by a third party which already held a $0.3 million non-controlling interest in the property. 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): 2021 $ 187,924 2022 103,617 2023 93,914 2024 85,964 2025 78,050 Thereafter 677,142 Total $ 1,226,611 |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (dollars in thousands): Participation / Carrying value as of December 31, Ownership % (1) 2020 2019 Equity method investments: Retail Fund (see Note 16) 33% $ — $ — Equity interest in a natural gas power plant 10% 25,095 25,862 Investor entity which owns equity in an online real estate company 50% 9,397 9,473 Equity interests in commercial real estate 50% 1,543 1,907 Equity interest in and advances to a residential mortgage originator (2) N/A 17,852 12,002 Various 25% - 50% 8,831 8,339 62,718 57,583 Other equity investments: Equity interest in a servicing and advisory business (3) 2% 17,584 — Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 7,267 9,225 Various, including FHLB stock 0% - 2% 20,485 17,521 45,336 26,746 $ 108,054 $ 84,329 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) Includes a $4.5 million subordinated loan as of both December 31, 2020 and 2019. (3) During the year ended December 31, 2019, we received a capital distribution of $8.4 million, our equity interest was reduced to 4% and the carrying value was reduced to zero . During April 2020, we sold 37% of our equity interest for $10.3 million in cash, reducing our interest to 2 %. In connection with the sale, we recognized a gain of $10.3 million. Because the sale represented an observable price change in an orderly transaction, we also increased the value of our remaining investment to reflect its implied fair value. In doing so, we recognized a gain of $17.6 million. These amounts were recognized within earnings (loss) from unconsolidated entities in our consolidated statement of operations during the year ended December 31, 2020. 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. As of December 31, 2019, we impaired the remainder of our investment based on our estimate of unrealized decreases in the fair value of the underlying real estate properties. Such decreases were recognized by the Retail Fund during the period included in the year ended December 31, 2020. As of December 31, 2020, 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. Other than our equity interest in the residential mortgage originator, there were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of December 31, 2020. During the year ended December 31, 2020, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election, except as described above with respect to the servicing and advisory business, or (ii) any indicators of impairment. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 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 2020, 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, 2020 and 2019 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 2020, 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. Future changes in the expectations of the impact of COVID-19 on our operations, financial performance and cash flows could cause our goodwill to be 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, 2020 and 2019, the balance of the domestic servicing intangible was net of $41.4 million and $26.2 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of December 31, 2020 and 2019, the domestic servicing intangible had a balance of $54.6 million and $43.2 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, 2020 and 2019 (amounts in thousands): As of December 31, 2020 As of December 31, 2019 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 13,202 $ — $ 13,202 $ 16,917 $ — $ 16,917 In-place lease intangible assets 133,203 (92,540) 40,663 135,293 (84,383) 50,910 Favorable lease intangible assets 24,181 (7,929) 16,252 24,218 (6,345) 17,873 Total net intangible assets $ 170,586 $ (100,469) $ 70,117 $ 176,428 $ (90,728) $ 85,700 The following table summarizes the activity within intangible assets for the years ended December 31, 2020 and 2019 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2019 $ 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 Amortization — (10,077) (1,621) (11,698) Sales — (170) — (170) Changes in fair value due to changes in inputs and assumptions (3,715) — — (3,715) Balance as of December 31, 2020 $ 13,202 $ 40,663 $ 16,252 $ 70,117 (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): 2021 $ 9,643 2022 7,862 2023 6,115 2024 4,722 2025 3,846 Thereafter 24,727 Total $ 56,915 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 $1.9 million and $2.3 million as of December 31, 2020 and 2019, respectively. |
Secured Borrowings
Secured Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Secured Borrowings | |
Secured Borrowings | |
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, 2020 and 2019 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2020 2019 Repurchase Agreements: Commercial Loans May 2021 to Aug 2025 (b) May 2023 to Mar 2029 (b) (c) $ 7,154,627 $ 8,783,716 (d) $ 4,878,939 $ 3,640,620 Residential Loans Jun 2022 to Oct 2023 N/A LIBOR + 2.64% 36,465 750,000 22,590 11,835 Infrastructure Loans Feb 2022 N/A LIBOR + 2.00% 278,174 500,000 232,961 188,198 Conduit Loans Feb 2021 to Jun 2023 Feb 2022 to Jun 2024 LIBOR + 2.10% 76,613 350,000 53,554 86,575 CMBS/RMBS Jan 2021 to Oct 2030 (e) Dec 2021 to Apr 2031 (e) (f) 1,116,212 770,656 620,763 (g) 682,229 Total Repurchase Agreements 8,662,091 11,154,372 5,808,807 4,609,457 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 56,127 650,000 (h) 43,014 198,955 Commercial Financing Facility Mar 2022 Mar 2029 GBP LIBOR + 1.75% 100,714 81,218 81,218 — Residential Financing Facility Sep 2022 Sep 2025 3.50% 298,008 250,000 215,024 — Infrastructure Acquisition Facility Sep 2021 Sep 2022 (i) 575,193 571,690 467,450 603,642 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.06% 663,702 1,250,000 538,645 428,206 Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (j) N/A 4.00% 1,280,300 1,077,572 1,077,528 1,196,492 Property Mortgages - Variable rate Nov 2021 to Jul 2030 N/A (k) 938,979 986,200 960,903 696,503 Term Loan and Revolver (l) N/A (l) N/A (l) 765,000 645,000 399,000 FHLB Feb 2021 N/A 2.06% 598,027 400,000 396,000 867,870 Total Other Secured Financing 4,511,050 6,031,680 4,424,782 4,390,668 $ 13,173,141 $ 17,186,052 10,233,589 9,000,125 Unamortized net discount (13,569) (8,347) Unamortized deferred financing costs (73,830) (85,730) $ 10,146,190 $ 8,906,048 (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 $1.5 billion as of December 31, 2020 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 2.03% . (d) The aggregate initial maximum facility size of $8.8 billion may be increased at our option, subject to certain conditions. This amount includes such upsizes. (e) Certain facilities with an outstanding balance of $271.0 million as of December 31, 2020 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $212.2 million as of December 31, 2020 has a weighted average fixed annual interest rate of 3.29% . All other facilities are variable rate with a weighted average rate of LIBOR + 1.80% . (g) Includes: (i) $212.2 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $41.3 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15). (h) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (i) Consists of an annual interest rate of the applicable currency benchmark index + 2.00% . (j) The weighted average maturity is 6.8 years as of December 31, 2020. (k) Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of LIBOR + 2.59% . (l) Consists of: (i) a $645.0 million term loan facility that matures in July 2026, of which $395.0 million has an annual interest rate of LIBOR + 2.50% and $250.0 million has an annual interest rate of LIBOR + 3.50% , subject to a 75 bps LIBOR floor, 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 $4.0 billion as of December 31, 2020. In January 2020, we entered into a CMBS/RMBS repurchase facility to finance certain CMBS investments within a consolidated joint venture in which we hold a 51 % ownership interest. The facility carries a rolling 12-month term which may reset quarterly with the lender’s consent and an annual interest rate of three-month LIBOR + 1.35% to 1.85 %. The facility’s maximum facility size is at the discretion of the lender. This facility does not permit valuation adjustments based on capital markets activity. In February 2020, we amended a Commercial Loans repurchase facility to increase available borrowings by $200.0 million to $1.8 billion. In March 2020, we amended an Infrastructure Financing Facility to increase available borrowings by $250.0 million to $750.0 million. In March 2020, we entered into a Commercial Financing Facility to finance non-U.S. commercial loans held-for-investment. The facility carries a two-year initial term with three one-year extension options and includes an option to extend the maturity for each underlying asset for up to four additional years. The facility has an annual interest rate of GBP LIBOR + 1.75%. This facility shares up to $500.0 million of $2.0 billion of maximum borrowings with a Commercial Loans repurchase facility. During the three months ended June 30, 2020, we entered into mortgage loans with total borrowings of $217.1 million to refinance our Woodstar I Portfolio. The loans carry ten-year terms and weighted average annual interest rates of LIBOR + 2.71 %. A portion of the net proceeds from the mortgage loans was used to repay $117.0 million of outstanding government sponsored mortgage loans. We recognized a loss on extinguishment of debt of $2.2 million in our consolidated statement of operations in connection with the repayment of the government sponsored mortgage loans. In September 2020, we entered into a Residential Loan financing facility to finance residential loans held-for-sale. The facility carries a two-year initial term with the option to subsequently convert the loan to a three-year term loan. The facility has a maximum facility size of $250.0 million and an annual interest rate of the greater of 3.50% or one-month LIBOR + 2.75%. This facility does not permit valuation adjustments based on capital markets activity. In October 2020, we amended the Term Loan facility to increase borrowings by $250.0 million. This increase to the Term Loan carries a six-year term and an annual interest rate of LIBOR + 3.50% , subject to a 75 bps LIBOR floor. In October 2020, we entered into a Residential Loans repurchase facility to finance residential loans. The facility carries a three-year term consisting of an 18-month revolving period and an 18 month extension period and an annual interest rate of one-month LIBOR + 2.30 %. The maximum facility size is $350.0 million. In October 2020, we entered into a $50.0 million mortgage loan to finance a property in our Commercial and Residential Lending Segment. The loan carries a three-year term with no prepayment penalty after 12 months or upon sale of the asset, and an annual interest rate of one-month LIBOR + 2.40%. During the year ended December 31, 2020, we extended maturities by a period of one Our secured financing agreements contain certain financial tests and covenants. As of December 31, 2020, 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 the 28% of repurchase agreements containing margin call provisions for general capital markets activity, approximately 15% 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, 2020, 2019 and 2018, approximately $36.4 million, $34.3 million and $27.0 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 years ended December 31, 2020 and 2019, we utilized the reinvestment feature, contributing $134.7 million and $88.1 million, respectively, of additional interests into the CLO. The following table is a summary of our CLO as of December 31, 2020 and 2019 (amounts in thousands): Face Carrying Weighted December 31, 2020 Count Amount Value Average Spread Maturity Collateral assets 23 $ 1,002,445 $ 1,099,439 LIBOR + 3.93% (a) Apr 2024 (b) Financing 1 936,375 930,554 LIBOR + 1.64% (c) July 2038 (d) December 31, 2019 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 years ended December 31, 2020 and 2019. Of the loans financed during the years ended December 31, 2020 and 2019, the weighted-average fixed interest rate earned on fixed-rate loans was 7.07% and 6.84% , respectively. As of December 31, 2020, there were no fixed-rate loans financed by the CLO. (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 years ended December 31, 2020 and 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. For the years ended December 31, 2020 and 2019, approximately $2.5 million and $0.9 million, respectively, of amortization of deferred financing costs was included in interest expense on our consolidated statements of operations. As of December 31, 2020 and 2019, our unamortized issuance costs were $5.8 million and $8.3 million, respectively. 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 2021 $ 656,717 $ 476,484 $ — $ 1,133,201 2022 1,213,850 465,487 — 1,679,337 2023 1,536,451 771,380 — 2,307,831 2024 905,731 299,625 — 1,205,356 2025 1,268,066 461,967 — 1,730,033 Thereafter 227,992 1,949,839 936,375 (a) 3,114,206 Total $ 5,808,807 $ 4,424,782 $ 936,375 $ 11,169,964 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes
Unsecured Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2020 2019 2021 Senior Notes (February) N/A N/A N/A N/A $ — $ 500,000 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 1.0 years 700,000 700,000 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 2.8 years 300,000 — 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 2.2 years 250,000 250,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 4.2 years 500,000 500,000 Total principal amount 1,750,000 1,950,000 Unamortized discount—Convertible Notes (2,559) (3,610) Unamortized discount—Senior Notes (9,332) (12,144) Unamortized deferred financing costs (5,589) (5,624) Carrying amount of debt components $ 1,732,520 $ 1,928,622 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. (2) The coupon on the 2025 Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%. 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 were set to mature on February 1, 2021, however in November 2020, we redeemed all of the 2021 February Notes at a price equal to 100% of the principal amount thereof. 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. Senior Notes Due November 2023 % Senior Notes due 2023 (the “2023 Notes”). The 2023 Notes mature on November 1, 2023. Prior to August 1, 2023, we may redeem some or all of the 2023 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 August 1, 2023, we may redeem some or all of the 2023 Notes at a price equal to 100% of the principal amount thereof. In addition, prior to November 1, 2022, we may redeem up to 40% of the 2023 Notes at a price equal to 105.5 % of the principal amount thereof 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). Our unsecured senior notes contain certain financial tests and covenants. As of December 31, 2020, we were in compliance with all such covenants. Convertible Notes On March 29, 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”) which remain outstanding at December 31, 2020 and mature on April 1, 2023. On July 3, 2013, we issued $460.0 million of 4.00% Convertible Senior Notes due 2019 (the “2019 Convertible Notes”). During the year ended December 31, 2018, we received and settled redemption notices related to the 2019 Convertible Notes with a par amount totaling $263.4 million. Total consideration of $296.8 million was paid via the issuance of 12.4 million shares and cash payments of $25.5 million. The $264.4 million of settlement consideration attributable to the liability component of the 2019 Convertible Notes exceeded the proportionate net carrying amount of the liability component by $2.1 million, which was recognized as a loss on extinguishment of debt in our consolidated statement of operations for the year ended December 31, 2018. The $32.4 million of settlement consideration attributable to the equity component of the 2019 Convertible Notes was recognized as a reduction of additional paid-in capital in our consolidated statement of equity for the year ended December 31, 2018, partially offsetting the $271.2 million fair value of the shares issued. During the year ended December 31, 2019, we settled the remaining $78.0 million principal amount of the 2019 Convertible Notes through the issuance of 3.6 million shares of common stock and cash payments of $12.0 million. We recognized interest expense of $12.2 million, $12.3 million and $28.9 million during the years ended December 31, 2020, 2019 and 2018, respectively, from our Convertible Notes. The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2020 (amounts in thousands, except rates): December 31, 2020 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2020 2019 2018 2019 Convertible Notes N/A N/A — — 91 2023 Convertible Notes 38.5959 $ 25.91 — — — (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, 2020, 2019 and 2018, the market price of the Company’s common stock was $19.30, $24.86 and $19.71 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 $63.8 million at December 31, 2020 as the closing market price of the Company’s common stock of $19.30 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 $186.2 million as of December 31, 2020. 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, 2020 | |
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. 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. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets. In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold. During the year ended December 31, 2020, we exercised the optional redemption on our first residential securitization that closed in 2018. In doing so, we acquired $176.6 million of loans and redeemed $10.5 million of our existing RMBS holdings. The net amount paid to a consolidated VIE to redeem the outstanding principal amount of its RMBS certificates and acquire the underlying loans pursuant to this provision are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. The following summarizes the face amount and proceeds of commercial and residential loans securitized for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Year Ended December 31, 2020 $ 920,282 $ 975,569 $ 1,770,513 $ 1,826,549 2019 1,781,981 1,845,890 1,256,481 1,305,059 2018 1,517,599 1,563,433 654,017 676,484 The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option. 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. Commercial and Residential Loan Sales Within the Commercial and Residential Lending Segment, we originate or acquire 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. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization. The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands): Loan Transfers Accounted for as Sales Commercial Residential For the Year Ended December 31, Face Amount (1) Proceeds (1) Face Amount Proceeds 2020 $ 446,132 $ 442,833 $ 550 $ 604 2019 751,210 748,045 26,046 26,797 2018 840,400 835,849 6,848 7,072 (1) During the year ended December 31, 2020, we sold $277.9 million and $168.2 million of senior interests in first mortgage loans and whole loan interests, respectively, for proceeds of $270.8 million and $172.0 million, respectively. During the years ended December 31, 2019 and 2018, all sales were of senior interests in first mortgage loans. During the years ended December 31, 2020 and 2019, (losses)/gains recognized by the Commercial and Residential Lending Segment on sales of commercial loans were losses of $1.0 million and gains of $4.6 million, respectively. During the year ended December 31, 2018, gains recognized by the Commercial and Residential Lending Segment on sales of commercial loans were not material. Infrastructure Loan Sales During the year ended December 31, 2020, the Infrastructure Lending Segment sold loans held-for-sale with an aggregate face amount of $61.1 million for proceeds of $60.8 million, recognizing gains of $0.3 million. 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 gains 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, 2020 | |
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, 2020 and 2019, the Company did not have any designated hedges and there was no impact of cash flow hedges on our net income during the years ended December 31, 2020 and 2019. During the year ended December 31, 2018, 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 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, 2020 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 1 1,915 EUR November 2022 Fx contracts – Buy Pounds Sterling ("GBP") 1 1,602 GBP January 2021 Fx contracts – Sell EUR 256 254,243 EUR January 2021-November 2025 Fx contracts – Sell GBP 149 431,836 GBP January 2021 - May 2024 Fx contracts – Sell Australian dollar ("AUD") 16 165,200 AUD August 2021 – June 2022 Interest rate swaps – Paying fixed rates 34 1,707,557 USD May 2023 – January 2031 Interest rate swaps – Receiving fixed rates 1 470,000 USD March 2025 Interest rate caps 22 991,354 USD March 2021 – April 2025 Credit index instruments 4 69,000 USD September 2058 – August 2061 Interest rate swap guarantees 6 378,757 USD March 2022 – June 2025 Total 490 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, 2020 and 2019 (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, 2020 2019 2020 2019 Interest rate contracts 33,841 14,385 4 — Interest rate swap guarantees — — 849 614 Foreign exchange contracts 6,585 14,558 39,951 7,834 Credit index instruments 129 — 520 292 Total derivatives $ 40,555 $ 28,943 $ 41,324 $ 8,740 (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, 2020, 2019 and 2018 (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 2020 2019 2018 Interest rate contracts (Loss) gain on derivative financial instruments $ (48,692) $ (10,516) $ (1,593) Interest rate swap guarantees (Loss) gain on derivative financial instruments (235) (3,350) (114) Foreign exchange contracts (Loss) gain on derivative financial instruments (32,561) 8,801 36,040 Credit index instruments (Loss) gain on derivative financial instruments (690) (1,245) 270 $ (82,178) $ (6,310) $ 34,603 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 2020 $ — $ — $ — Interest expense 2019 $ — $ — $ — Interest expense 2018 $ 8 $ 33 $ — Interest expense |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Derivative assets $ 40,555 $ — $ 40,555 $ 6,716 $ 33,772 $ 67 Derivative liabilities $ 41,324 $ — $ 41,324 $ 6,716 $ 27,416 $ 7,192 Repurchase agreements 5,808,807 — 5,808,807 5,808,807 — — $ 5,850,131 $ — $ 5,850,131 $ 5,815,523 $ 27,416 $ 7,192 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 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
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, a 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 as of December 31, 2020 and 2019 (amounts in thousands): December 31, 2020 December 31, 2019 Assets: Cash and cash equivalents $ 96,998 $ — Loans held-for-investment 1,002,441 1,073,504 Accrued interest receivable 5,454 3,129 Other assets 557 26,496 Total Assets $ 1,105,450 $ 1,103,129 Liabilities Accounts payable, accrued expenses and other liabilities $ 663 $ 1,362 Collateralized loan obligations, net 930,554 928,060 Total Liabilities $ 931,217 $ 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 $673.0 million and liabilities of $444.3 million as of December 31, 2020. 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 $330.0 million and liabilities of $85.0 million as of December 31, 2020. Refer to Note 17 for further discussion. In addition to the above non-securitization entities, we have smaller VIEs with total assets of $99.6 million and liabilities of $53.6 million as of December 31, 2020. 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, 2020, five of our six 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. Two of the five CDOs defaulted during the year ended December 31, 2020. 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, 2020, 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, 2020, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $19.5 million on a fair value basis. As of December 31, 2020, 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 $4.0 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 $25.1 million as of December 31, 2020, 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, 2020 | |
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. Base Management Fee For the years ended December 31, 2020, 2019 and 2018, approximately $76.6 million, $77.0 million and $73.2 million, respectively, was incurred for base management fees. In April 2020, our board of directors authorized the payment of our first quarter base management fee of $19.1 million in 1,422,143 shares of our common stock. As of December 31, 2020 and 2019, there were $19.2 million and $19.3 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 an amount, not less than zero, equal to the difference between (1) the product of (x) 20% and (y) the difference between (i) our Core Earnings for the previous 12-month period, and (ii) the product of (A) the weighted average of the issue price per share of our common stock of all of our public offerings and including issue price per equity security of subsidiaries issued in exchange for properties multiplied by the weighted average number of all shares of common stock outstanding (including any RSUs, any RSAs and other shares of common stock underlying awards granted under our equity incentive plans) and equity securities of subsidiaries issued in exchange for properties in such previous 12-month period, and (B) 8%, and (2) the sum of any incentive fee paid to our Manager with respect to the first three One Core Earnings is defined 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, 2020, 2019 and 2018, approximately $30.8 million, $20.2 million and $41.4 million, respectively, was incurred for incentive fees. As of December 31, 2020 and 2019, there were $15.0 million and $18.1 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, 2020, 2019 and 2018, approximately $8.5 million, $7.7 million and $7.7 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, 2020 and 2019, there were $5.0 million and $3.5 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, 2020, 2019 and 2018, we granted Payments to Manager Employees. for that year. No cash payments were made directly to employees of our Manager during the years ended December 31, 2020 and 2019. 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 November 2020, we granted 1,800,000 RSUs to our Manager under the 2017 Manager Equity Plan. In September 2019, we granted 1,200,000 RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted Investments in Loans and Securities In August 2020, the Company received a $245.0 million partial repayment on a $339.2 million first mortgage and mezzanine loan that was originated in August 2017 related to an office campus located in Irvine, California. An affiliate of our Manager has a non-controlling equity interest in the borrower. As of December 31, 2020, the outstanding balance of this loan was $29.4 million. In March 2020, a £75.0 million first mortgage that was co-originated with SEREF in June 2016 for the development of a three -property mixed use portfolio located in Greater London was paid off in full. In January 2020, the Company originated a $3.5 million bridge loan to a third party borrower for the development and recapitalization of luxury cabin rentals. In February 2020, the bridge loan was repaid, and the Company originated a $99.0 million first mortgage loan to the same borrower. The loan bears interest at a fixed rate of 10.5% plus fees and contains a term of 36 months with two one-year extension options. Certain members of our executive team and board of directors own equity interests in the borrower. As of December 31, 2020, the outstanding balance of this loan was $45.3 million. In January 2020, the Company co-originated a €70.3 million mezzanine loan with SEREF, an affiliate of our Manager, to the third party that acquired our property portfolio in Ireland in December 2019. The Company and SEREF each originated During the years ended December 31, 2020, 2019 and 2018, the Company acquired $244.4 million, $353.0 million and $135.6 million, respectively, of loans from a residential mortgage originator in which it holds an equity interest. In September 2020, the Company amended a $4.5 million subordinated loan to this residential mortgage originator, which was entered into in June 2018, to extend the maturity from September 2020 to September 2021. Such loan had been amended in September and October 2019 to extend the maturity from September 2019 to September 2020 and increase the total commitment from $2.0 million to $4.5 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. As of December 31, 2020, the outstanding balance of this loan was In February 2019, the Company acquired a $60.0 million participation in a $925.0 million 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. As of December 31, 2020, the outstanding participation balance in this term loan was 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. 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. As of December 31, 2020, the outstanding balance of this loan was 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. As of December 31, 2020, the outstanding balance of this loan was €52.8 million. 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. As of December 31, 2020, the outstanding balance of this loan was $64.1 million. In December 2012, the Company 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, 2020, 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 and 2018, we recognized a loss of $114.4 million and earnings of $3.7 million, respectively. No earnings or losses were recognized during the year ended December 31, 2020. 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 $47.2 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. Lease Arrangements In March 2020, we entered into an office lease agreement with an entity which is controlled by our Chairman and CEO through majority equity ownership of the entity. The leased premises are currently under construction and will serve as our new Miami Beach office when our existing lease in Miami Beach expires on December 31, 2021. The lease will commence after delivery of the office space to us, but no earlier than July 30, 2021. The lease is for approximately 74,000 square feet of office space, has an initial term of 15 years and requires monthly lease payments starting in the tenth month after lease commencement. The lease payments are based on an annual base rate of $52.00 per square foot that increases by 3% each anniversary following commencement, plus our pro rata share of building operating expenses. In April 2020, we provided a $1.9 million cash security deposit to the landlord. Prior to the execution of this lease, we engaged an independent third party leasing firm and external counsel to advise the independent directors of our board of directors on market terms for the lease. The terms of the lease were approved by our independent directors. 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 and 2018, we acquired net real estate assets acquired from consolidated CMBS trusts during the year ended December 31, 2020. Refer to Note 3 for further discussion of these acquisitions. Acquisitions from Consolidated RMBS Trusts When our Commercial and Residential Lending Segment exercises an optional redemption right in a securitization VIE, it unwinds the securitization structure and acquires the underlying loans from the VIE. Acquisitions of loans from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the year ended December 31, 2020, we acquired million of residential loans from consolidated RMBS trusts at their par amounts. Refer to Note 12 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, 2020, 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, 2020, 2019 and 2018, the non-controlling interests related to this fund received cash distributions of Highmark Residential (“Highmark”), an affiliate of our Manager, now provides property management services for all 32 properties within our Woodstar I Portfolio. Fees paid to Highmark are calculated as a percentage of gross receipts and are at market terms. During the years ended December 31, 2020, 2019 and 2018, property management fees to Highmark of $2.1 million, $1.6 million and $0.1 million, respectively, were recognized in our consolidated statements of operations. |
Stockholders' Equity and Non-Co
Stockholders' Equity and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020, 2019 and 2018, 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, 2020, 2019 and 2018, there were no shares issued under the ATM Agreement. In February 2020, our board of directors authorized the repurchase of up to $400.0 million of our outstanding common shares and Convertible Notes over a period of one year . Purchases made pursuant to the program will be made either in the open market or in privately negotiated transactions from time to time as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases are discretionary and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The program may be suspended or discontinued at any time. During the year ended December 31, 2020, we repurchased Convertible Notes under our repurchase program. As of December 31, 2020, we had 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 Convertible Notes. Refer to Note 11 for further discussion. Our board of directors declared the following dividends during the years ended December 31, 2020, 2019 and 2018: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 12/9/20 12/31/20 12/30/20 1/15/21 $ 0.48 Quarterly 9/16/20 9/30/20 9/29/20 10/15/20 0.48 Quarterly 6/16/20 6/30/20 6/29/20 7/15/20 0.48 Quarterly 2/25/20 3/31/20 3/30/20 4/15/20 0.48 Quarterly 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 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, 2020, 4,709,531 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 effective 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, 2020, 2019 and 2018 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period November 2020 RSU 1,800,000 $ 30,078 3 years 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 (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, 2020, 2019 and 2018, we granted 1,014,753, 520,236 and 851,170 RSAs, respectively, under 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 2017 Equity Plan during the years ended December 31, 2020, 2019 and 2018. The following shares of common stock were issued, without restriction, to our Manager as part of the incentive and base management compensation due under the Management Agreement during the years ended December 31, 2020, 2019 and 2018: Timing of Issuance Shares of Common Stock Issued Price per share May 2020 2,065,322 (1) February 2020 355,910 $ 25.51 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 (1) 1,422,143 shares of common stock were issued with a share price of $13.42 relating to the first quarter base management fee. 643,179 shares of common stock were issued with a share price of $12.25 relating to the first quarter incentive fee. The following table summarizes our share-based compensation expenses during the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Management fees: Manager incentive fee $ 15,405 $ 10,082 $ 20,700 Base management fee 19,088 — — 2017 Manager Equity Plan (1) 17,987 20,255 12,573 52,480 30,337 33,273 General and administrative: 2017 Equity Plan (1) 13,254 15,900 10,185 13,254 15,900 10,185 Total share-based compensation expense (2) $ 65,734 $ 46,237 $ 43,458 (1) Share-based compensation expense relating to the Manager Equity Plan is reflected within the 2017 Manager Equity Plan. Share-based compensation expense relating to the Non-Executive Director Stock Plan and the Equity Plan are reflected within the 2017 Equity Plan. (2) The income tax benefit associated with the share-based compensation expense for the years ended December 31, 2020, 2019 and 2018 was immaterial. 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, 2020 1,413,170 1,305,597 2,718,767 $ 22.74 Granted 1,014,753 1,800,000 2,814,753 14.64 Vested (807,854) (818,701) (1,626,555) 21.93 Forfeited (25,464) — (25,464) 14.06 Balance as of December 31, 2020 1,594,605 2,286,896 3,881,501 17.26 (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, 2020, 2019 and 2018 was $14.64, $24.01 and $21.20, respectively. Vesting Schedule 2017 Equity 2017 Manager Plan Equity Plan Total 2021 790,918 991,619 1,782,537 2022 487,506 845,277 1,332,783 2023 316,181 450,000 766,181 Total 1,594,605 2,286,896 3,881,501 As of December 31, 2020, there was approximately $56.1 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 2.2 years. The total fair value of shares vested during the years ended December 31, 2020, 2019 and 2018 were $35.7 million, $33.2 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 our consolidated subsidiary, 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, 2020, 2019 and 2018, we issued 0.1 million, 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, 2020, redemptions of 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, 2020, 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 sheets, and any net income attributable to this 49% joint venture interest is reflected within net income attributable to non-controlling interests in our consolidated statement of operations. The non-controlling interests in the CMBS JV were 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, 2020 | |
Earnings per Share | |
Earnings per Share | 18. Earnings per Shar e For the Year Ended December 31, 2020 2019 2018 Basic Earnings Income attributable to STWD common stockholders $ 331,689 $ 509,664 $ 385,830 Less: Income attributable to participating shares not already deducted as non-controlling interests (5,216) (3,873) (3,592) Basic earnings $ 326,473 $ 505,791 $ 382,238 Diluted Earnings Income attributable to STWD common stockholders $ 331,689 $ 509,664 $ 385,830 Less: Income attributable to participating shares not already deducted as non-controlling interests (5,216) (3,873) (3,592) Add: Interest expense on Convertible Notes (1) * 12,354 25,148 Add: Loss on extinguishment of Convertible Notes (1) * — 2,099 Diluted earnings $ 326,473 $ 518,145 $ 409,485 Number of Shares: Basic — Average shares outstanding 281,978 279,337 265,279 Effect of dilutive securities — Convertible Notes (1) * 9,805 22,659 Effect of dilutive securities — Contingently issuable shares 383 360 546 Effect of dilutive securities — Unvested non-participating shares 122 210 — Diluted — Average shares outstanding 282,483 289,712 288,484 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.16 $ 1.81 $ 1.44 Diluted $ 1.16 $ 1.79 $ 1.42 (1) The Company does not intend 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, 2020, 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, 2020, 2019 and 2018, participating shares of 14.4 million, 13.3 million and 13.8 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, 2020, 2019 and 2018 included 10.6 million, 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, 2020 | |
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, 2018 $ 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 OCI before reclassifications — (6,939) — (6,939) Amounts reclassified from AOCI — — — — Net period OCI — (6,939) — (6,939) Balance at December 31, 2020 $ — $ 44,057 $ (64) $ 43,993 The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2020, 2019 and 2018 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 2020 2019 2018 of Operations Gain on cash flow hedges: Interest rate contracts — — $ 33 Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection $ — $ 59 46 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 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 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
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 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 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, 2020 and 2019, 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 and loans held-for-sale 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 and unsecured senior notes not convertible The fair value of the secured financing agreements, CLO and unsecured senior notes not convertible 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, 2020 and 2019 (amounts in thousands): December 31, 2020 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 1,022,979 $ — $ — $ 1,022,979 RMBS 167,349 — — 167,349 CMBS 19,457 — — 19,457 Equity security 11,247 11,247 — — Domestic servicing rights 13,202 — — 13,202 Derivative assets 40,555 — 40,555 — VIE assets 64,238,328 — — 64,238,328 Total $ 65,513,117 $ 11,247 $ 40,555 $ 65,461,315 Financial Liabilities: Derivative liabilities $ 41,324 $ — $ 41,324 $ — VIE liabilities 62,776,371 — 60,756,495 2,019,876 Total $ 62,817,695 $ — $ 60,797,819 $ 2,019,876 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 The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2020 and 2019 (amounts in thousands): Domestic Loans at Servicing VIE Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2019 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) 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 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 133,124 — 6,991 (3,715) (2,405,599) 128,747 (2,140,452) Net accretion — 10,712 — — — — 10,712 Included in OCI — (6,939) — — — — (6,939) Purchases / Originations 2,304,924 — — — — — 2,304,924 Sales (2,802,722) — (7,940) — — — (2,810,662) Issuances — — — — — (29,927) (29,927) Cash repayments / receipts (225,155) (26,000) (4,829) — — (9,901) (265,885) Transfers into Level III — — — — — (1,393,905) (1,393,905) Transfers out of Level III — — — — — 1,902,944 1,902,944 Transfers within Level III 176,614 — — — (176,614) — — Consolidation of VIEs — — — — 4,665,636 (101,690) 4,563,946 Deconsolidation of VIEs — — 227 — (32,270) 21,248 (10,795) December 31, 2020 balance $ 1,022,979 $ 167,349 $ 19,457 $ 13,202 $ 64,238,328 $ (2,019,876) $ 63,441,439 Amount of unrealized (losses) gains attributable to assets still held at December 31, 2020: Included in earnings $ 26,041 10,712 1,127 (3,715) (2,327,393) 128,747 $ (2,164,481) Included in OCI — (6,939) — — — — (6,939) Amount of unrealized (losses) gains included in earnings attributable to assets still held at 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, 2020 December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans held-for-sale $ 11,116,929 $ 11,107,316 $ 10,034,030 $ 10,086,372 HTM debt securities 538,605 515,253 570,638 568,727 Financial liabilities not carried at fair value: Secured financing agreements and CLO $ 11,076,744 $ 11,108,364 $ 9,834,108 $ 9,826,511 Unsecured senior notes 1,732,520 1,786,667 1,928,622 2,022,283 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 (Weighted Average) as of (1) December 31, 2020 Technique Input December 31, 2020 December 31, 2019 Loans under fair value option $ 1,022,979 Discounted cash flow, market pricing Coupon (d) 3.3% - 9.7% (5.9%) 3.4% - 5.9% Remaining contractual term (d) 7.3 - 39.3 years ( 26.3 years) 8.3 - 39.9 years FICO score (a) 519 - 823 (727) 580 - 823 LTV (b) 5% - 94% (68%) 6% - 94% Purchase price (d) 84.4% - 104.8% (99.8%) 85.6% - 104.8% RMBS 167,349 Discounted cash flow Constant prepayment rate (a) 3.6% - 19.4% (7.6%) 3.1% - 24.9% Constant default rate (b) 0.7% - 5.4% (2.4%) 0.5% - 5.0% Loss severity (b) 0% - 85% (20%) (f) 0% - 93% (f) Delinquency rate (c) 10% - 32% (19%) 5% - 29% Servicer advances (a) 23% - 82% (54%) 27% - 85% Annual coupon deterioration (b) 0.0% - 0.9% (0.1%) 0% - 1.6% Putback amount per projected total collateral loss (e) 0% -17% (0.8%) 0% - 28% CMBS 19,457 Discounted cash flow Yield (b) 0% - 536.6% (7.1%) 0% - 122.9% Duration (c) 0 - 7.6 years ( 5.3 years) 0 - 9.7 years Domestic servicing rights 13,202 Discounted cash flow Debt yield (a) 7.50% (7.50%) 7.50% Discount rate (b) 15% (15%) 15% VIE assets 64,238,328 Discounted cash flow Yield (b) 0% - 312.2% (14.3%) 0% - 690.7% Duration (c) 0 - 16.3 years ( 3.8 years) 0 - 19.2 years VIE liabilities (2,019,876) Discounted cash flow Yield (b) 0% - 312.2% (14.4%) 0% - 690.7% Duration (c) 0 - 10.8 years ( 3.8 years) 0 - 12.7 years (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of December 31, 2020. Information about Uncertainty of Fair Value Measurements (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) This unobservable input is not subject to variability as of the respective reporting dates. (e) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (f) 23% and 34% of the portfolio falls within a range of 45% - 80% as of December 31, 2020 and 2019, respectively . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
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 mortgage loans, and investing in entities which engage in real estate-related operations. As of December 31, 2020 and 2019, approximately $1.4 billion and $1.6 billion, 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, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Current Federal $ 5,690 $ 4,917 $ 10,508 State 3,201 3,182 3,010 Foreign 195 977 293 Total current 9,086 9,076 13,811 Deferred Federal 8,213 3,869 1,189 State 2,898 287 330 Total deferred 11,111 4,156 1,519 Total income tax provision $ 20,197 $ 13,232 $ 15,330 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, 2020 2019 Deferred tax asset, net Reserves and accruals $ 4,571 $ 4,017 Domestic intangible assets (1,672) 8,185 Lease assets (310) (1,950) Lease liabilities 579 2,752 Investment in unconsolidated entities (1,236) (116) Deferred income — 19 Net operating and capital loss carryforwards 974 885 Other U.S. temporary differences 2 228 Net deferred tax assets $ 2,908 $ 14,020 Unrecognized tax benefits were not material as of and during the years ended December 31, 2020 and 2019. The Company’s tax returns are no longer subject to audit for years ended prior to January 1, 2017. 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. There was no 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, 2020, 2019 and 2018 (dollars in thousands): For the Year Ended December 31, 2020 2019 2018 Federal statutory tax rate $ 81,118 21.0 % $ 115,535 21.0 % $ 89,571 21.0 % REIT and other non-taxable loss (58,265) (15.1) % (106,301) (19.3) % (77,972) (18.3) % State income taxes 7,509 1.9 % 3,034 0.5 % 3,038 0.7 % Federal benefit of state tax deduction (1,577) (0.4) % (637) (0.1) % (638) (0.1) % Net operating loss carryback rate differential (3,387) (0.9) % — — % — — % Intra-entity transfer (5,385) (1.4) % — — % — — Other 184 0.1 % 1,601 0.3 % 1,331 0.3 % Effective tax rate $ 20,197 5.2 % $ 13,232 2.4 % $ 15,330 3.6 % There were no valuation allowances during the years ended December 31, 2020, 2019 and 2018. In response to the COVID-19 pandemic, the U.S. and many other governments have enacted, or are contemplating enacting, measures to provide aid and economic stimulus. These measures include deferring the due dates of tax payments and other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws, and to allow companies to carry back tax net operating losses (“NOLs”) generated in 2018 to 2020 to the five preceding tax years. The Company plans to carry back its NOL generated this year to a year in which the federal tax rate was 35 %, resulting in a tax benefit from the NOL carryback for the year ended December 31, 2020. We continue to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 22. Commitments and Contingencie s As of December 31, 2020, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $1.6 billion, of which we expect to fund $1.3 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. As of December 31, 2020, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $201.2 million, including $121.6 million under revolvers and letters of credit (“LCs”), and $79.6 million under delayed draw term loans. As of December 31, 2020, 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, 2020, we had six 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. The following lease commitment disclosures do not include leases which have not yet commenced, such as the Miami Beach office lease agreement discussed in Note 16. Our lease costs and sublease income were as follows (in thousands): For the Year Ended December 31, 2020 2019 2018 Operating lease costs $ 5,571 $ 5,634 $ 4,962 Short-term lease costs 42 115 210 Sublease income (1,509) (1,613) (1,643) Total lease cost $ 4,104 $ 4,136 $ 3,529 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheets as of December 31, 2020 and 2019, is as follows (dollars in thousands): For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities—operating $ 6,268 $ 5,215 December 31, 2020 December 31, 2019 Weighted-average remaining lease term 7.0 years 6.0 years Weighted-average discount rate 4.1 % 4.4 % Future maturity of operating lease liabilities: 2021 $ 3,480 2022 1,272 2023 1,281 2024 1,290 2025 1,350 Thereafter 4,461 Total 13,134 Less interest component (1,691) Operating lease liability $ 11,443 |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2020 | |
Segment 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, 2020 by business segment (amounts in thousands): The table below presents our results of operations for the year ended December 31, 2020 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 $ 665,503 $ 77,851 $ — $ 8,589 $ — $ 751,943 $ — $ 751,943 Interest income from investment securities 78,490 2,637 — 93,823 — 174,950 (120,538) 54,412 Servicing fees 549 — — 41,806 — 42,355 (12,721) 29,634 Rental income 4,706 — 255,452 37,670 — 297,828 — 297,828 Other revenues 412 499 293 1,139 — 2,343 (5) 2,338 Total revenues 749,660 80,987 255,745 183,027 — 1,269,419 (133,264) 1,136,155 Costs and expenses: Management fees 796 — — 901 125,372 127,069 58 127,127 Interest expense 176,230 40,913 65,390 24,303 113,313 420,149 (386) 419,763 General and administrative 41,972 15,673 4,542 80,039 15,312 157,538 336 157,874 Acquisition and investment pursuit costs 2,406 1,183 12 (29) — 3,572 — 3,572 Costs of rental operations 3,186 — 97,136 17,354 — 117,676 — 117,676 Depreciation and amortization 1,708 342 76,246 16,109 — 94,405 — 94,405 Credit loss provision (reversal), net 47,256 (4,103) — — — 43,153 — 43,153 Other expense 307 — 531 — — 838 — 838 Total costs and expenses 273,861 54,008 243,857 138,677 253,997 964,400 8 964,408 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 78,258 78,258 Change in fair value of servicing rights — — — 11,415 — 11,415 (15,130) (3,715) Change in fair value of investment securities, net (15,108) — — (51,403) — (66,511) 71,904 5,393 Change in fair value of mortgage loans, net 76,897 — — 56,227 — 133,124 — 133,124 Earnings (loss) from unconsolidated entities 8,779 (767) — 30,845 — 38,857 (1,540) 37,317 (Loss) gain on sale of investments and other assets, net (961) 306 — 7,965 — 7,310 — 7,310 (Loss) gain on derivative financial instruments, net (58,664) (1,499) (34,392) (21,269) 33,646 (82,178) — (82,178) Foreign currency gain (loss), net 42,205 207 (14) (3) — 42,395 — 42,395 Loss on extinguishment of debt (22) (959) (2,185) — (488) (3,654) — (3,654) Other (loss) income, net — — (166) 447 — 281 — 281 Total other income (loss) 53,126 (2,712) (36,757) 34,224 33,158 81,039 133,492 214,531 Income (loss) before income taxes 528,925 24,267 (24,869) 78,574 (220,839) 386,058 220 386,278 Income tax (provision) benefit (21,091) (117) — 1,011 — (20,197) — (20,197) Net income (loss) 507,834 24,150 (24,869) 79,585 (220,839) 365,861 220 366,081 Net income attributable to non-controlling interests (14) — (20,394) (13,764) — (34,172) (220) (34,392) Net income (loss) attributable to Starwood Property Trust, Inc . $ 507,820 $ 24,150 $ (45,263) $ 65,821 $ (220,839) $ 331,689 $ — $ 331,689 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 Credit 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, 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 Credit 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, 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 consolidated balance sheet as of December 31, 2020 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 $ 160,007 $ 4,440 $ 32,080 $ 19,546 $ 346,372 $ 562,445 $ 772 $ 563,217 Restricted cash 93,445 45,113 7,192 13,195 — 158,945 — 158,945 Loans held-for-investment, net 9,673,625 1,412,440 — 1,008 — 11,087,073 — 11,087,073 Loans held-for-sale 841,963 120,540 — 90,332 — 1,052,835 — 1,052,835 Investment securities 1,014,402 35,681 — 1,112,145 — 2,162,228 (1,425,570) 736,658 Properties, net 103,896 — 1,969,414 197,843 — 2,271,153 — 2,271,153 Intangible assets — — 40,370 71,123 — 111,493 (41,376) 70,117 Investment in unconsolidated entities 54,407 25,095 — 44,664 — 124,166 (16,112) 108,054 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 6,595 — 41 147 33,772 40,555 — 40,555 Accrued interest receivable 87,922 2,091 — 123 5,978 96,114 (134) 95,980 Other assets 61,638 4,531 69,859 44,579 10,148 190,755 (7) 190,748 VIE assets, at fair value — — — — — — 64,238,328 64,238,328 Total Assets $ 12,097,900 $ 1,769,340 $ 2,118,956 $ 1,735,142 $ 396,270 $ 18,117,608 $ 62,755,901 $ 80,873,509 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 41,104 $ 12,144 $ 43,630 $ 45,309 $ 64,583 $ 206,770 $ 75 $ 206,845 Related-party payable — — — 5 39,165 39,170 — 39,170 Dividends payable — — — — 137,959 137,959 — 137,959 Derivative liabilities 39,082 1,718 — 524 — 41,324 — 41,324 Secured financing agreements, net 5,893,999 1,240,763 1,794,609 606,100 632,719 10,168,190 (22,000) 10,146,190 Collateralized loan obligations, net 930,554 — — — — 930,554 — 930,554 Unsecured senior notes, net — — — — 1,732,520 1,732,520 — 1,732,520 VIE liabilities, at fair value — — — — — — 62,776,371 62,776,371 Total Liabilities 6,904,739 1,254,625 1,838,239 651,938 2,606,946 13,256,487 62,754,446 76,010,933 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,921 2,921 — 2,921 Additional paid-in capital 1,192,584 496,387 98,882 (322,992) 3,744,878 5,209,739 — 5,209,739 Treasury stock — — — — (138,022) (138,022) — (138,022) Accumulated other comprehensive income (loss) 44,057 — — (64) — 43,993 — 43,993 Retained earnings (accumulated deficit) 3,956,405 18,328 (44,832) 1,260,819 (5,820,453) (629,733) — (629,733) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,193,046 514,715 54,050 937,763 (2,210,676) 4,488,898 — 4,488,898 Non-controlling interests in consolidated subsidiaries 115 — 226,667 145,441 — 372,223 1,455 373,678 Total Equity 5,193,161 514,715 280,717 1,083,204 (2,210,676) 4,861,121 1,455 4,862,576 Total Liabilities and Equity $ 12,097,900 $ 1,769,340 $ 2,118,956 $ 1,735,142 $ 396,270 $ 18,117,608 $ 62,755,901 $ 80,873,509 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 Revenues generated from foreign sources were $115.2 million, $115.6 million and $90.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The majority of our revenues generated from foreign sources are derived from the United Kingdom. Refer to Schedules III and IV for a detailed listing of the properties and loans held by the Company, including their respective geographic locations. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020: Revenues $ 312,560 $ 265,606 $ 267,427 $ 290,562 Net (loss) income (66,269) 152,961 164,734 114,655 Net (loss) income attributable to Starwood Property Trust, Inc. (66,769) 139,656 151,834 106,968 (Loss) earnings per share — Basic (0.24) 0.49 0.53 0.37 (Loss) earnings per share — Diluted (0.24) 0.49 0.52 0.37 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 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, 2020 | |
Subsequent Events | |
Subsequent Events | 25. Subsequent Event s Our significant events subsequent to December 31, 2020 were as follows: Secured Financing Agreements In January 2021, we entered into a Residential Loans repurchase facility to finance residential loans. The facility carries a one-year term, which we intend to extend every three months, and an annual interest rate of one-month LIBOR + 2.00% to 2.50% subject to a 25 bps LIBOR floor. The maximum facility size is $375.0 million. Collateralized Loan Obligations In February 2021, we priced STWD 2021-SIF1, a $500.0 million new issue CLO related to a pool of our infrastructure loans held-for-investment, with $410.0 million of third party financing at an average coupon of LIBOR + 181 bps. 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 for a period of three years. The transaction is subject to customary closing conditions. |
Schedule III-Real Estate and Ac
Schedule III-Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (Dollars in thousands) Costs Initial Cost Capitalized Gross Amounts Carried at Property Type / to Company Subsequent to December 31, 2020 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 $ 1,017 $ — $ 6,582 $ 6,582 $ (2,612) Feb-18 Medical office—U.S., Midwest (7 properties) 78,048 2,764 97,797 553 2,764 98,350 101,114 (12,788) Dec-16 Medical office—U.S., North East (7 properties) 191,661 11,283 176,996 — 11,283 176,996 188,279 (21,811) Dec-16 Medical office—U.S., South East (6 properties) 107,252 7,930 117,740 137 7,930 117,877 125,807 (15,310) Dec-16 Medical office—U.S., South West (8 properties) 125,345 15,921 126,842 858 15,921 127,700 143,621 (17,780) Dec-16 Medical office—U.S., West (6 properties) 97,694 13,415 107,844 589 13,415 108,433 121,848 (16,006) Dec-16 Mixed Use—U.S., West (1 property) 8,667 1,001 14,323 525 1,001 14,848 15,849 (2,111) Feb-16 Multifamily—U.S., South East (60 properties) 1,028,902 251,084 928,384 40,175 251,113 968,530 1,219,643 (155,037) Oct-15 to Aug-19 Office—U.S., North East (1 property) 19,018 7,250 10,614 6,783 7,250 17,397 24,647 (2,702) May-18 Office—U.S., South East (1 property) 24,873 4,879 16,862 2,699 4,879 19,561 24,440 (5,565) Oct-16 Office—U.S., South West (2 properties) 31,622 8,188 28,019 5,673 8,188 33,692 41,880 (4,125) Sep-17 to Feb-18 Office—U.S., West (1 property) — — 4,261 8,228 — 12,489 12,489 (2,702) Oct-17 Retail—U.S., Mid Atlantic (1 property) 18,000 6,432 6,315 12,580 6,432 18,895 25,327 (2,975) Mar-16 Retail—U.S., Midwest (7 properties) 79,300 24,384 109,445 1,354 24,384 110,799 135,183 (13,531) Nov-15 to Sep-17 Retail—U.S., North East (1 property) 11,567 472 12,260 625 472 12,885 13,357 (2,346) Nov-15 Retail—U.S., South East (5 properties) 42,469 21,353 60,618 53 21,353 60,671 82,024 (6,221) Sep-16 to Sep-17 Retail—U.S., South West (6 properties) 76,513 37,254 78,579 96 37,254 78,675 115,929 (10,654) Oct-14 to Sep-17 Retail—U.S., West (2 properties) 33,000 18,633 36,794 — 18,633 36,794 55,427 (4,144) Sep-17 Self-storage—U.S., North East (1 property) 14,500 2,202 11,498 239 2,202 11,737 13,939 (1,707) Dec-15 Industrial—U.S., South East (2 properties) 50,000 10,121 17,295 3,250 10,121 20,545 30,666 (2,016) Mar-19 to Apr-19 Residential—U.S., North East (1 property) — — 75,245 — — 75,245 75,245 — Oct-20 $ 2,038,431 $ 444,566 $ 2,043,296 $ 85,434 $ 444,595 $ 2,128,701 $ 2,573,296 (2) $ (302,143) 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 $2.7 billion. (3) Depreciation is computed based upon estimated useful lives as described in Note 7 to the Consolidated Financial Statements. The following schedule presents our real estate activity during the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Beginning balance, January 1 $ 2,490,630 $ 2,972,803 $ 2,755,050 Additions during the year: Acquisitions (1) — 8,472 445,170 Acquisitions through foreclosure and other transfers 75,245 27,416 — Improvements 25,164 30,865 25,764 Contingent consideration issued 1,576 2,877 38,211 Foreign currency translation — — — Total additions 101,985 69,630 509,145 Deductions during the year: Costs of real estate sold (19,319) (535,417) (269,989) Foreign currency translation — (15,702) (21,260) Other — (684) (143) Total deductions (19,319) (551,803) (291,392) Ending balance, December 31 $ 2,573,296 $ 2,490,630 $ 2,972,803 (1) Refer to Note 16 to the Consolidated Financial Statements for a discussion of property acquisitions from related parties. The following schedule presents activity within accumulated depreciation during the years ended December 31, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Beginning balance, January 1 $ 224,190 $ 187,913 $ 107,569 Depreciation expense 81,610 92,024 91,188 Disposition/write-offs (3,657) (54,260) (9,389) Foreign currency translation — (1,487) (1,455) Ending balance, December 31 $ 302,143 $ 224,190 $ 187,913 |
Schedule IV-Mortgage Loans on R
Schedule IV-Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (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 $ — $ 341,688 $ 338,426 3GBP+4.35% I/O 1/11/2024 $ — Aggregated First Mortgages: (5) Hotel, International, Floating (3 mortgages) N/A N/A 63,889 3EU+4.90% N/A 2022 — Hotel, International, Floating (4 mortgages) N/A N/A 36,214 L+3.00% to 9.00% N/A 2021 — Hotel, Mid Atlantic, Floating (5 mortgages) N/A N/A 111,442 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 2021 — Hotel, North East, Floating (5 mortgages) N/A N/A 333,438 L+2.25% to 12.00% N/A 2021-2023 — Hotel, South East, Floating (4 mortgages) N/A N/A 61,836 L+2.40% to 7.40% N/A 2022 — Hotel, South West, Floating (8 mortgages) N/A N/A 173,995 L+2.00% to 7.67% N/A 2023 — Hotel, Various, Fixed (2 mortgages) N/A N/A 45,668 10.50% 2023 — Hotel, Various, Floating (7 mortgages) N/A N/A 410,530 L+2.00% to 10.50% 2021-2023 — Hotel, West, Floating (17 mortgages) N/A N/A 422,293 L+2.00% to 9.50% N/A 2021-2024 — Industrial, International, Floating (3 mortgages) N/A N/A 78,438 3EU+2.25% to 4.65% N/A 2023 — Industrial, International, Floating (2 mortgages) N/A N/A 47,904 3GBP+2.15% to 4.65% N/A 2023 — Industrial, South East, Fixed (4 mortgages) N/A N/A 36,097 8.18% N/A 2024 — Industrial, Various, Floating (4 mortgages) N/A N/A 129,212 L+2.25% to 7.25% N/A 2023 — Mixed Use, International, Fixed (2 mortgages) N/A N/A 41,671 8.50% to 10.00% N/A 2021 — Mixed Use, International, Floating (2 mortgages) N/A N/A 111,444 3EU+4.85% N/A 2023 — Mixed Use, International, Floating (1 mortgage) N/A N/A 177,535 GBP+3.15% N/A 2021 — Mixed Use, Mid Atlantic, Floating (1 mortgage) N/A N/A 41,250 L+3.15% N/A 2024 — Mixed Use, South West, Floating (13 mortgages) N/A N/A 291,401 L+2.50% to 10.00% N/A 2022-2023 — Multi-family, International, Fixed (1 mortgage) N/A N/A 113,650 8.00% N/A 2021 — Multi-family, International, Floating (5 mortgages) N/A N/A 546,878 3GBP+2.66% to 4.50% N/A 2021-2024 — Multi-family, Midwest, Fixed (1 mortgage) N/A N/A 1,008 6.28% N/A 2024 — Multi-family, Mid Atlantic, Floating (4 mortgages) N/A N/A 91,972 L+1.75% to 5.75% N/A 2023 — Multi-family, North East, Floating (8 mortgages) N/A N/A 266,397 L+1.85% to 6.45% N/A 2021 — Multi-family, South East, Floating (1 mortgage) N/A N/A 39,601 L+4.25% N/A 2024 — Multi-family, South West, Floating (13 mortgages) N/A N/A 159,992 L+2.50% to 3.00% N/A 2021-2023 — Multi-family, West, Floating (3 mortgages) N/A N/A 101,473 L+3.75% N/A 2023 — Office, International, Fixed (1 mortgage) N/A N/A 247,151 5.35% N/A 2021 — Office, International, Floating (4 mortgages) N/A N/A 389,472 3GBP+3.50% to 4.25% N/A 2023 — Office, International, Floating (2 mortgages) N/A N/A 84,497 EUR+6.00% to 7.80% N/A 2021-2022 — Office, Mid Atlantic, Floating (26 mortgages) N/A N/A 659,581 L+1.75% to 7.50% N/A 2021-2023 — Office, Midwest, Floating (7 mortgages) N/A N/A 136,479 L+1.75% to 9.75% N/A 2021 — Office, North East, Floating (16 mortgages) N/A N/A 608,148 L+2.80% to 12.00% N/A 2021-2023 — Office, South East, Fixed (2 mortgages) N/A N/A 52,006 5.00% to 12.00% N/A 2024 — Office, South East, Floating (4 mortgages) N/A N/A 46,391 L+2.00% to 8.25% N/A 2021 — Office, South West, Floating (11 mortgages) N/A N/A 280,297 L+2.00% to 8.55% N/A 2021-2023 — Office, West, Floating (41 mortgages) N/A N/A 908,109 L+1.25% to 7.00% N/A 2021-2023 — Other, Midwest, Floating (4 mortgages) N/A N/A 59,927 L+4.50% to 11.17% N/A 2021 — Other, North East, Floating (4 mortgages) N/A N/A 32,539 L+3.75% to 10.63% N/A 2022 — Other, Various, Fixed (1 mortgage) N/A N/A 40,158 10.00% N/A 2025 — Other, Various, Floating (1 mortgage) N/A N/A 62,638 3M L+4.00% N/A 2024 — Other, West, Floating (8 mortgages) N/A N/A 60,781 L+3.75% to 9.25% N/A 2021 — Residential, International, Floating (1 mortgage) N/A N/A 5,700 3GBP+13.00% N/A 2021 — Residential, North East, Floating (10 mortgages) N/A N/A 602,945 L+2.50% to 8.60% N/A 2020-2022 30,874 Residential, South East, Floating (3 mortgages) N/A N/A 57,467 L+3.10% to 9.12% N/A 2022-2023 — Residential, West, Floating (2 mortgages) N/A N/A 16,727 L+2.75% to 8.75% N/A 2021 — Residential, Various, Fixed (177 mortgages) N/A N/A 90,684 3.38% to 9.00% N/A 2030-2049 8,946 Retail, Midwest, Floating (4 mortgages) N/A N/A 40,749 L+2.75% to 10.75% N/A 2021 — Retail, North East, Floating (1 mortgage) N/A N/A 184,135 L+7.25% N/A 2021 184,135 Retail, South West, Floating (8 mortgages) N/A N/A 25,625 L+2.25% to 15.25% N/A 2021 — Retail, West, Fixed (1 mortgage) N/A N/A 366 7.26% N/A 2023 — Loans Held-for-Sale, Various, Fixed N/A N/A 932,295 3.25% to 9.50% N/A 2028-2060 9,841 Aggregated Subordinated and Mezzanine Loans: (5) Hotel, South East, Floating (3 mortgages) N/A N/A 83,424 L+6.75% to 7.04% N/A 2021-2022 — Industrial, South East, Fixed (1 mortgage) N/A N/A 2,668 8.18% N/A 2024 — Industrial, South East, Floating (1 mortgage) N/A N/A 16,029 L+10.15% N/A 2024 — Mixed Use, International, Floating (1 mortgage) N/A N/A 39,865 3EU+7.25% N/A 2022 — Mixed Use, South East, Floating (2 mortgages) N/A N/A 36,581 L+5.50% to 10.25% N/A 2021 — Mixed Use, South West, Floating (1 mortgage) N/A N/A 96,141 L+11.85% N/A 2021 — Multi-family, Mid Atlantic, Floating (1 mortgage) N/A N/A 32,934 L+9.75% N/A 2022 — Multi-family, North East, Floating (4 mortgages) N/A N/A 122,636 L+4.50% to 9.25% N/A 2021-2023 — Office, International, Floating (4 mortgages) N/A N/A 68,298 3EU+7.00% to 8.95% N/A 2024-2025 — Office, North East, Fixed (2 mortgages) N/A N/A 35,022 8.72% N/A 2023 — Prior Face Carrying Payment Maturity Principal Amount of Description/ Location Liens (1) Amount Amount Interest Rate (2) Terms (3) Date (4) Delinquent Loans Office, West, Floating (4 mortgages) N/A N/A 85,129 L+6.24% to 6.67% N/A 2022-2024 — Other, West, Floating (2 mortgages) N/A N/A 60,807 L+11.00% N/A 2021 — Retail, Midwest, Fixed (2 mortgages) N/A N/A 11,977 7.16% N/A 2024 11,977 Loan Loss Allowance — — (61,855) — Prepaid Loan Costs, Net — — 2,741 — $ 10,584,400 (6) $ 245,773 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 $10.7 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, 2020, 2019 and 2018 (amounts in thousands): For the year ended December 31, 2020 2019 2018 Balance at January 1 $ 9,890,693 $ 7,806,699 $ 7,357,034 Cumulative effect of ASC 326 effective January 1, 2020 (10,112) — — Acquisitions/originations/additional funding 5,058,705 8,174,321 6,543,873 Capitalized interest 143,023 109,978 62,445 Basis of loans sold (3,246,515) (3,921,171) (3,082,347) Loan maturities/principal repayments (1,590,379) (2,387,843) (3,086,107) Discount accretion/premium amortization 38,942 29,775 37,408 Changes in fair value 133,124 71,601 40,522 Unrealized foreign currency translation gain (loss) 102,748 38,050 (26,645) Credit loss provision, net (40,955) (2,616) (34,821) Loan foreclosures and other transfers (71,488) (27,303) — Transfer to/from other asset classifications 176,614 (798) (4,663) Balance at December 31 $ 10,584,400 $ 9,890,693 $ 7,806,699 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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, a 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, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding 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 non-performance 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 loans held-for-investment were made in order to maintain consistency across all our residential 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 reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 20 for further discussion regarding our fair value measurements. |
Business Combinations | Business Combinations Under ASC 805, Business Combinations 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) cash collateral associated with derivative financial instruments, (ii) 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 and (iii) funds held on behalf of borrowers and tenants. |
Loans Held-for-Investment | Loans Held-for-Investment Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless we have elected to apply the fair value option at purchase. |
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. 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 (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM 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 AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. |
Credit Losses | Credit Losses Loans and Debt Securities Measured at Amortized Cost ASC 326, Financial Instruments – Credit Losses , became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL 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 under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our consolidated balance sheet), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. Our adoption of the CECL model resulted in a As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 5 for further discussion of our methodologies. We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration 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 or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral. Available-for-Sale Debt Securities Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. As of the January 1, 2020 effective date, no such credit loss allowance gross-up was required on our AFS debt securities with PCD due to their individual unrealized gain positions as of that date. Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment. |
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. 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 sheets as of December 31, 2020 and 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 election 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. Our other equity investments set forth in Note 8 do not have readily determinable fair values. Therefore, we have elected the fair value practicability exception under ASC 321, Equity Securities We review our equity method and other investments not subject to the fair value practicability election for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our investments under the fair value practicability election, we perform a qualitative assessment to identify impairment at the end of each reporting period. 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, 2020 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 Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment |
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 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. Such excess, if any, is recognized as interest income on a level-yield basis over the life of the loan. Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss). Servicing Fees We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under-performing and non-performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met. Rental Income Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor. |
Securitizations, Sales and Financing Arrangements | Securitizations, Sales and Financing Arrangements We periodically sell our financial assets, such as commercial mortgage loans, residential 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 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, 2020, 2019 and 2018, 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. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our investments, which has a significant impact on the amount of income 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. The outbreak of COVID-19 beginning in the first quarter of 2020 has had, and is expected to continue to have, an adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2020. However, uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and our business in particular, makes any estimates and assumptions as of December 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results may ultimately differ from those estimates. |
Recent Accounting Developments | Recent Accounting Developments Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, Reference Rate Reform (Topic 848) – Scope, On August 5, 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40), removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation into a debt component and an equity or derivative component. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives and the convertible instruments are not issued with substantial premiums accounted for as paid-in capital. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. ASU 2020-06 also revises the derivative scope exception for contracts in an entity’s own equity and improves the consistency of EPS calculations. This ASU is effective for larger public business entities’ annual periods, and interim periods therein, beginning after December 15, 2021. Early application is permitted for fiscal years beginning after December 15, 2020. We expect to early adopt this ASU effective January 1, 2021 through the modified retrospective method of transition, resulting in a cumulative adjustment to our beginning stockholders’ equity components as of that date related to our outstanding Convertible Notes. We do not expect the application of this ASU, including the cumulative adjustment upon adoption, to materially impact our consolidated financial statements. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions and Divestitures | |
Summary of assets acquired and liabilities assumed | The following table summarizes the identified assets acquired and liabilities assumed as of the acquisition dates (amounts in thousands): 2018 Infrastructure Assets acquired: Lending Segment Loans held-for-investment $ 1,649,630 Loans held-for-sale 319,710 Investment securities 65,060 Accrued interest receivable 13,843 Total identifiable assets acquired 2,048,243 Liabilities assumed: Accounts payable, accrued expenses and other liabilities 8,817 Derivative liabilities 282 Total liabilities assumed 9,099 Net assets acquired $ 2,039,144 |
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 year ended December 31, 2018, assuming the Infrastructure Lending Segment was acquired on January 1, 2018, are as follows (amounts in thousands, except per share amounts): For the Year Ended (Unaudited) December 31, 2018 Revenues $ 1,182,892 Net income attributable to STWD 392,505 Net income per share - Basic 1.47 Net income per share - Diluted 1.44 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restricted Cash. | |
Summary of restricted cash | A summary of our restricted cash as of December 31, 2020 and 2019 is as follows (amounts in thousands): As of December 31, 2020 2019 Cash collateral for derivative financial instruments $ 89,323 $ 37,912 Cash restricted by lender 42,992 40,818 Funds held on behalf of borrowers and tenants 19,517 11,903 Other restricted cash 7,113 5,010 $ 158,945 $ 95,643 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans | |
Summary of investments in mortgages and loans by subordination class | The following tables summarize our investments in mortgages and loans as of December 31, 2020 and 2019 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) December 31, 2020 Value Amount Coupon (1) (years)(2) Loans held-for-investment: Commercial loans: First mortgages (3) $ 8,931,772 $ 8,978,373 5.3 % 1.5 Subordinated mortgages (4) 71,185 72,257 8.8 % 2.8 Mezzanine loans (3) 620,319 619,352 10.1 % 1.6 Other 30,284 33,626 8.9 % 1.8 Total commercial loans 9,653,560 9,703,608 Infrastructure first priority loans (5) 1,420,273 1,439,940 4.4 % 4.3 Residential loans, fair value option (6) 90,684 86,796 6.0 % N/A (7) Total loans held-for-investment 11,164,517 11,230,344 Loans held-for-sale: Residential, fair value option (6) 841,963 820,807 6.0 % N/A (7) Commercial, fair value option 90,332 90,789 3.9 % 10.0 Infrastructure, lower of cost or fair value (5) 120,540 120,900 3.1 % 3.2 Total loans held-for-sale 1,052,835 1,032,496 Total gross loans 12,217,352 $ 12,262,840 Credit loss allowances: Commercial loans held-for-investment (69,611) Infrastructure loans held-for-investment (7,833) Total allowances (77,444) Total net loans $ 12,139,908 December 31, 2019 Loans held-for-investment: Commercial loans: First mortgages (3) $ 7,928,026 $ 7,962,788 5.8 % 2.0 Subordinated mortgages (4) 75,724 77,055 8.8 % 3.4 Mezzanine loans (3) 484,164 484,408 11.0 % 1.9 Other 62,555 66,525 8.2 % 1.6 Total commercial loans 8,550,469 8,590,776 Infrastructure first priority loans 1,397,448 1,416,164 5.6 % 4.9 Residential loans, fair value option (6) 671,572 654,925 6.1 % N/A (7) Total loans held-for-investment 10,619,489 10,661,865 Loans held-for-sale: Residential, fair value option (6) 605,384 587,144 6.2 % N/A (7) Commercial, fair value option 159,238 160,635 3.9 % 10.0 Infrastructure, lower of cost or fair value 119,724 121,271 3.3 % 2.1 Total loans held-for-sale 884,346 869,050 Total gross loans 11,503,835 $ 11,530,915 Credit loss allowances: Commercial loans held-for-investment (33,415) Infrastructure loans held-for-investment — Total held-for-investment allowances (33,415) Infrastructure loans held-for-sale with a fair value allowance (196) Total allowances (33,611) Total net loans $ 11,470,224 (1) Calculated using LIBOR or other applicable index rates as of December 31, 2020 and 2019 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 $877.3 million and $967.0 million being classified as first mortgages as of December 31, 2020 and 2019, 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, 2020, $104.3 million of infrastructure loans held-for-sale were reclassified into loans held-for-investment and $174.6 million of infrastructure loans held-for-investment were reclassified into loans held-for-sale. (6) During the year ended December 31, 2020, $575.3 million of residential loans held-for-investment were reclassified into loans held-for-sale. During the year ended December 31, 2019, $340.9 million of residential loans held-for-sale were reclassified into residential loans held-for-investment. (7) Residential loans have a weighted average remaining contractual life of 27.9 years and 29.3 years as of December 31, 2020 and 2019, respectively. |
Summary of variable rate loans held-for-investment | As of December 31, 2020, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average December 31, 2020 Value Spread Above Index Commercial loans $ 9,003,590 4.3 % Infrastructure loans 1,420,273 3.8 % Total variable rate loans held-for-investment $ 10,423,863 4.2 % |
Schedule of risk ratings by class of loan | The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of December 31, 2020 (dollars in thousands): Term Loans Revolving Loans Total Credit Amortized Cost Basis by Origination Year Amortized Cost Amortized Loss As of December 31, 2020 2020 2019 2018 2017 2016 Prior Total Cost Basis Allowance Commercial loans: Credit quality indicator: LTV < 60% $ 751,090 $ 1,087,183 $ 1,022,495 $ 1,062,362 $ 134,420 $ 267,650 $ — $ 4,325,200 $ 8,801 LTV 60% - 70% 301,225 1,640,009 1,625,379 36,581 53,482 39,195 — 3,695,871 24,842 LTV > 70% 399,968 632,292 312,640 141,002 — 75,340 — 1,561,242 19,946 Credit deteriorated — — 28,986 7,755 — 11,977 — 48,718 16,022 Defeased and other — — — — — 22,529 — 22,529 — Total commercial $ 1,452,283 $ 3,359,484 $ 2,989,500 $ 1,247,700 $ 187,902 $ 416,691 $ — $ 9,653,560 $ 69,611 Infrastructure loans: Credit quality indicator: Power $ 74,817 $ 222,733 $ 268,960 $ 109,604 $ 166,922 $ 211,795 $ 13,963 $ 1,068,794 $ 4,295 Oil and gas — 244,769 101,677 — — — 5,033 351,479 3,538 Total infrastructure $ 74,817 $ 467,502 $ 370,637 $ 109,604 $ 166,922 $ 211,795 $ 18,996 $ 1,420,273 $ 7,833 Residential loans held-for-investment, fair value option 90,684 — Loans held-for-sale 1,052,835 — Total gross loans $ 12,217,352 $ 77,444 |
Schedule of activity in allowance for loan losses | The following table presents the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Loans Held-for-Investment Held-for-Sale Total Year Ended December 31, 2020 Commercial Infrastructure Infrastructure Funded Loans Credit loss allowance at December 31, 2019 $ 33,415 $ — $ 196 $ 33,611 Cumulative effect of ASC 326 effective January 1, 2020 10,112 10,328 — 20,440 Credit loss provision (reversal), net 48,711 (2,495) (125) 46,091 Charge-offs (22,627) (1) — (71) (22,698) Recoveries — — — — Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ — $ 77,444 (1) Primarily relates to the charge-off of the credit loss allowance relating to credit deteriorated first mortgage and contiguous mezzanine loans that were eliminated as a result of consolidating the net assets of the borrower entities upon exercising control over their pledged equity interests in October 2020. Unfunded Commitments Credit Loss Allowance (1) Loans Held-for-Investment Year Ended December 31, 2020 Commercial Infrastructure Total Credit loss allowance at December 31, 2019 $ — $ — $ — Cumulative effect of ASC 326 effective January 1, 2020 8,348 2,205 10,553 Credit loss reversal, net (3,090) (1,393) (4,483) Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ 6,070 Memo: Unfunded commitments as of December 31, 2020 (2) $ 1,341,939 $ 79,593 $ 1,421,532 (1) Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheet. (2) Represents amounts expected to be funded (see Note 22). |
Schedule of activity in loan portfolio | The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Year Ended December 31, 2020 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2019 $ 8,517,054 $ 1,397,448 $ 671,572 $ 884,150 $ 11,470,224 Cumulative effect of ASC 326 effective January 1, 2020 (10,112) (10,328) — — (20,440) Acquisitions/originations/additional funding 2,753,782 278,694 100,720 2,204,203 5,337,399 Capitalized interest (1) 143,818 195 — — 144,013 Basis of loans sold (2) (443,793) — (604) (2,862,606) (3,307,003) Loan maturities/principal repayments (1,398,991) (189,288) (90,273) (142,644) (1,821,196) Discount accretion/premium amortization 39,642 2,447 — 110 42,199 Changes in fair value — — (15,382) 148,506 133,124 Unrealized foreign currency translation gain (loss) 102,748 1,096 — (1,291) 102,553 Credit loss (provision) reversal, net (48,711) 2,495 — 125 (46,091) Transfer to/from other asset classifications (71,488) (3) (70,319) (575,349) 822,282 (4) 105,126 Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Loans Transferred Held-for-Investment Loans As Secured Year Ended December 31, 2019 Commercial Infrastructure Residential Held-for-Sale Loans Borrowings Total Loans Balance at December 31, 2018 $ 7,075,577 $ 1,456,779 — $ 1,187,552 $ 74,346 $ 9,794,254 Acquisitions/originations/additional funding 4,161,584 902,053 394,697 3,636,380 — 9,094,714 Capitalized interest (1) 110,632 — — — — 110,632 Basis of loans sold (2) (743,425) — (106) (3,567,859) — (4,311,390) Loan maturities/principal repayments (2,172,068) (832,998) (62,704) (162,376) (74,692) (3,304,838) Discount accretion/premium amortization 30,128 2,072 — 2,841 346 35,387 Changes in fair value — — (1,314) 72,915 — 71,601 Unrealized foreign currency translation (loss) gain 38,050 — — 2,105 — 40,155 Credit loss provision, net (2,616) (3,314) — (1,196) — (7,126) Loan foreclosures (27,303) — — — — (27,303) Transfer to/from other asset classifications 46,495 (127,144) 340,999 (286,212) — (25,862) Balance at December 31, 2019 $ 8,517,054 $ 1,397,448 $ 671,572 $ 884,150 $ — $ 11,470,224 Loans Transferred Held-for-Investment Loans As Secured Year Ended December 31, 2018 Commercial Infrastructure Residential Held-for-Sale Loans Borrowings Total Loans Balance at December 31, 2017 $ 6,561,296 $ — $ 1,199 $ 745,743 $ 74,403 $ 7,382,641 Acquisitions/originations/additional funding 4,300,406 131,115 146 2,291,477 — 6,723,144 Acquisition of Infrastructure Lending Portfolio — 1,458,835 — 510,505 — 1,969,340 Capitalized interest (1) 63,047 — — — — 63,047 Basis of loans sold (2) (835,358) — — (2,246,989) — (3,082,347) Loan maturities/principal repayments (2,943,602) (133,271) (1,345) (194,140) (308) (3,272,666) Discount accretion/premium amortization 37,748 100 — — 251 38,099 Changes in fair value — — — 40,522 — 40,522 Unrealized foreign currency translation (loss) gain (26,645) — — (5,696) — (32,341) Credit loss provision, net (34,821) — — — — (34,821) Transfer to/from other asset classifications (46,494) — — 46,130 — (364) Balance at December 31, 2018 $ 7,075,577 $ 1,456,779 $ — $ 1,187,552 $ 74,346 $ 9,794,254 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 12 for additional disclosure on these transactions. (3) Represents the net carrying value of credit deteriorated first mortgage and contiguous mezzanine loans related to a residential conversion project located in New York City that is eliminated as a result of consolidating the net assets of the borrower entities upon exercising control over their pledged equity interests in October 2020. (4) Includes $176.6 million of residential loans transferred from VIE assets upon redemption of a consolidated RMBS trust . |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of investment securities | Investment securities were comprised of the following as of December 31, 2020 and 2019 (amounts in thousands): Carrying Value as of December 31, 2020 2019 RMBS, available-for-sale $ 167,349 $ 189,576 RMBS, fair value option (1) 235,997 147,034 CMBS, fair value option (1), (2) 1,209,030 1,295,363 HTM debt securities, amortized cost net of credit loss allowance of $5,675 and $0 538,605 570,638 Equity security, fair value 11,247 12,664 Subtotal — 2,162,228 2,215,275 VIE eliminations (1) (1,425,570) (1,405,037) Total investment securities $ 736,658 $ 810,238 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $179.5 million and $186.6 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2020 and 2019, 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 Securitization available-for-sale value option value option Securities VIEs (1) Total Year Ended December 31, 2020 Purchases/fundings $ — $ 282,368 $ 49,416 $ 22,408 $ (331,784) $ 22,408 Sales — 135,567 37,867 — (165,494) 7,940 Principal collections 26,000 44,197 30,079 52,704 (69,447) 83,533 Redemptions — 10,474 — — (10,474) — 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 (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, 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, 2020 and 2019 (amounts in thousands): Unrealized Gains or (Losses) Recognized in AOCI Credit Gross Gross Net Amortized Loss Net Unrealized Unrealized Fair Value Cost Allowance Basis Gains Losses Adjustment Fair Value December 31, 2020 RMBS $ 123,292 $ — $ 123,292 $ 44,123 $ (66) $ 44,057 $ 167,349 December 31, 2019 RMBS $ 138,580 N/A $ 138,580 $ 51,310 $ (314) $ 50,996 $ 189,576 Weighted Average Coupon (1) Weighted Average WAL December 31, 2020 RMBS 1.3 % B+ 5.7 (1) Calculated using the December 31, 2020 one-month LIBOR rate of 0.144% for floating rate securities. (2) Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. |
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, 2020 and 2019, and for which an allowance for credit losses has not been recorded (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, 2020 RMBS $ 438 $ 1,195 $ (25) $ (41) As of December 31, 2019 RMBS $ — $ 1,380 $ — $ (314) |
Held-to-maturity | |
Summary of investments in HTM securities | The table below summarizes our investments in HTM debt securities as of December 31, 2020 and 2019 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Cost Basis Allowance Amount Holding Gains Holding Losses Fair Value December 31, 2020 CMBS $ 339,059 $ — $ 339,059 $ — $ (23,286) $ 315,773 Preferred interests 166,614 (2,749) 163,865 432 (913) 163,384 Infrastructure bonds 38,607 (2,926) 35,681 415 — 36,096 Total $ 544,280 $ (5,675) $ 538,605 $ 847 $ (24,199) $ 515,253 December 31, 2019 CMBS $ 383,473 $ — $ 383,473 $ 946 $ (3,001) $ 381,418 Preferred interests 142,012 — 142,012 1,148 (353) 142,807 Infrastructure bonds 45,153 — 45,153 — (651) 44,502 Total $ 570,638 $ — $ 570,638 $ 2,094 $ (4,005) $ 568,727 |
Summary of activity in credit loss allowance for HTM debt securities | The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands): Total HTM Preferred Infrastructure Credit Loss Interests Bonds Allowance Year Ended December 31, 2020 Credit loss allowance at December 31, 2019 $ — $ — $ — Cumulative effect of ASC 326 effective January 1, 2020: Beginning accumulated deficit charge 1,114 179 1,293 Gross-up of PCD bond amortized cost basis — 2,837 2,837 Credit loss provision (reversal), net 1,635 (90) 1,545 Credit loss allowance at December 31, 2020 $ 2,749 $ 2,926 $ 5,675 |
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, 2020 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 339,059 $ — $ — $ 339,059 One to three years — 163,865 — 163,865 Three to five years — — — — Thereafter — — 35,681 35,681 Total $ 339,059 $ 163,865 $ 35,681 $ 538,605 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Properties | |
Summary of properties | The table below summarizes our properties held as of December 31, 2020 and December 31, 2019 (dollars in thousands): Depreciable Life December 31, 2020 December 31, 2019 Property Segment Land and land improvements 0 – 15 years $ 484,846 $ 484,397 Buildings and building improvements 5 – 45 years 1,690,701 1,687,756 Furniture & fixtures 3 – 7 years 59,632 52,567 Investing and Servicing Segment Land and land improvements 0 – 15 years 50,585 54,052 Buildings and building improvements 3 – 40 years 179,014 182,048 Furniture & fixtures 2 – 5 years 2,606 2,139 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 10 years 11,416 11,386 Buildings and building improvements 10 – 23 years 19,251 16,285 Construction in progress (2) N/A 75,245 — Properties, cost 2,573,296 2,490,630 Less: accumulated depreciation (302,143) (224,190) Properties, net $ 2,271,153 $ 2,266,440 (1) Represents properties acquired through loan foreclosure or exercise of control over loan borrower pledged equity interests. (2) Represents assets related to the borrower entity that we exercised control over. Refer to Note 5 for further detail. |
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): 2021 $ 187,924 2022 103,617 2023 93,914 2024 85,964 2025 78,050 Thereafter 677,142 Total $ 1,226,611 |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment in Unconsolidated Entities | |
Summary of investments in unconsolidated entities | The table below summarizes our investments in unconsolidated entities as of December 31, 2020 and 2019 (dollars in thousands): Participation / Carrying value as of December 31, Ownership % (1) 2020 2019 Equity method investments: Retail Fund (see Note 16) 33% $ — $ — Equity interest in a natural gas power plant 10% 25,095 25,862 Investor entity which owns equity in an online real estate company 50% 9,397 9,473 Equity interests in commercial real estate 50% 1,543 1,907 Equity interest in and advances to a residential mortgage originator (2) N/A 17,852 12,002 Various 25% - 50% 8,831 8,339 62,718 57,583 Other equity investments: Equity interest in a servicing and advisory business (3) 2% 17,584 — Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 7,267 9,225 Various, including FHLB stock 0% - 2% 20,485 17,521 45,336 26,746 $ 108,054 $ 84,329 (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) Includes a $4.5 million subordinated loan as of both December 31, 2020 and 2019. (3) During the year ended December 31, 2019, we received a capital distribution of $8.4 million, our equity interest was reduced to 4% and the carrying value was reduced to zero . During April 2020, we sold 37% of our equity interest for $10.3 million in cash, reducing our interest to 2 %. In connection with the sale, we recognized a gain of $10.3 million. Because the sale represented an observable price change in an orderly transaction, we also increased the value of our remaining investment to reflect its implied fair value. In doing so, we recognized a gain of $17.6 million. These amounts were recognized within earnings (loss) from unconsolidated entities in our consolidated statement of operations during the year ended December 31, 2020. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (amounts in thousands): As of December 31, 2020 As of December 31, 2019 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 13,202 $ — $ 13,202 $ 16,917 $ — $ 16,917 In-place lease intangible assets 133,203 (92,540) 40,663 135,293 (84,383) 50,910 Favorable lease intangible assets 24,181 (7,929) 16,252 24,218 (6,345) 17,873 Total net intangible assets $ 170,586 $ (100,469) $ 70,117 $ 176,428 $ (90,728) $ 85,700 |
Summary of activity within intangible assets | The following table summarizes the activity within intangible assets for the years ended December 31, 2020 and 2019 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2019 $ 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 Amortization — (10,077) (1,621) (11,698) Sales — (170) — (170) Changes in fair value due to changes in inputs and assumptions (3,715) — — (3,715) Balance as of December 31, 2020 $ 13,202 $ 40,663 $ 16,252 $ 70,117 (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): 2021 $ 9,643 2022 7,862 2023 6,115 2024 4,722 2025 3,846 Thereafter 24,727 Total $ 56,915 |
Secured Borrowings (Tables)
Secured Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Secured Borrowings | |
Summary of secured financing agreements | The following table is a summary of our secured financing agreements in place as of December 31, 2020 and 2019 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2020 2019 Repurchase Agreements: Commercial Loans May 2021 to Aug 2025 (b) May 2023 to Mar 2029 (b) (c) $ 7,154,627 $ 8,783,716 (d) $ 4,878,939 $ 3,640,620 Residential Loans Jun 2022 to Oct 2023 N/A LIBOR + 2.64% 36,465 750,000 22,590 11,835 Infrastructure Loans Feb 2022 N/A LIBOR + 2.00% 278,174 500,000 232,961 188,198 Conduit Loans Feb 2021 to Jun 2023 Feb 2022 to Jun 2024 LIBOR + 2.10% 76,613 350,000 53,554 86,575 CMBS/RMBS Jan 2021 to Oct 2030 (e) Dec 2021 to Apr 2031 (e) (f) 1,116,212 770,656 620,763 (g) 682,229 Total Repurchase Agreements 8,662,091 11,154,372 5,808,807 4,609,457 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 56,127 650,000 (h) 43,014 198,955 Commercial Financing Facility Mar 2022 Mar 2029 GBP LIBOR + 1.75% 100,714 81,218 81,218 — Residential Financing Facility Sep 2022 Sep 2025 3.50% 298,008 250,000 215,024 — Infrastructure Acquisition Facility Sep 2021 Sep 2022 (i) 575,193 571,690 467,450 603,642 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.06% 663,702 1,250,000 538,645 428,206 Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (j) N/A 4.00% 1,280,300 1,077,572 1,077,528 1,196,492 Property Mortgages - Variable rate Nov 2021 to Jul 2030 N/A (k) 938,979 986,200 960,903 696,503 Term Loan and Revolver (l) N/A (l) N/A (l) 765,000 645,000 399,000 FHLB Feb 2021 N/A 2.06% 598,027 400,000 396,000 867,870 Total Other Secured Financing 4,511,050 6,031,680 4,424,782 4,390,668 $ 13,173,141 $ 17,186,052 10,233,589 9,000,125 Unamortized net discount (13,569) (8,347) Unamortized deferred financing costs (73,830) (85,730) $ 10,146,190 $ 8,906,048 (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 $1.5 billion as of December 31, 2020 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 2.03% . (d) The aggregate initial maximum facility size of $8.8 billion may be increased at our option, subject to certain conditions. This amount includes such upsizes. (e) Certain facilities with an outstanding balance of $271.0 million as of December 31, 2020 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $212.2 million as of December 31, 2020 has a weighted average fixed annual interest rate of 3.29% . All other facilities are variable rate with a weighted average rate of LIBOR + 1.80% . (g) Includes: (i) $212.2 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $41.3 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 15). (h) The initial maximum facility size of $300.0 million may be increased to $650.0 million, subject to certain conditions. (i) Consists of an annual interest rate of the applicable currency benchmark index + 2.00% . (j) The weighted average maturity is 6.8 years as of December 31, 2020. (k) Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of LIBOR + 2.07% that we swapped to a fixed rate of 3.34%. The remainder have a weighted average rate of LIBOR + 2.59% . (l) Consists of: (i) a $645.0 million term loan facility that matures in July 2026, of which $395.0 million has an annual interest rate of LIBOR + 2.50% and $250.0 million has an annual interest rate of LIBOR + 3.50% , subject to a 75 bps LIBOR floor, 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 $4.0 billion as of December 31, 2020. |
Schedule of collateralized loan obligations | The following table is a summary of our CLO as of December 31, 2020 and 2019 (amounts in thousands): Face Carrying Weighted December 31, 2020 Count Amount Value Average Spread Maturity Collateral assets 23 $ 1,002,445 $ 1,099,439 LIBOR + 3.93% (a) Apr 2024 (b) Financing 1 936,375 930,554 LIBOR + 1.64% (c) July 2038 (d) December 31, 2019 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 years ended December 31, 2020 and 2019. Of the loans financed during the years ended December 31, 2020 and 2019, the weighted-average fixed interest rate earned on fixed-rate loans was 7.07% and 6.84% , respectively. As of December 31, 2020, there were no fixed-rate loans financed by the CLO. (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 years ended December 31, 2020 and 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 2021 $ 656,717 $ 476,484 $ — $ 1,133,201 2022 1,213,850 465,487 — 1,679,337 2023 1,536,451 771,380 — 2,307,831 2024 905,731 299,625 — 1,205,356 2025 1,268,066 461,967 — 1,730,033 Thereafter 227,992 1,949,839 936,375 (a) 3,114,206 Total $ 5,808,807 $ 4,424,782 $ 936,375 $ 11,169,964 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at December 31, Rate Rate (1) Date Amortization 2020 2019 2021 Senior Notes (February) N/A N/A N/A N/A $ — $ 500,000 2021 Senior Notes (December) 5.00 % 5.32 % 12/15/2021 1.0 years 700,000 700,000 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 2.8 years 300,000 — 2023 Convertible Notes 4.38 % 4.86 % 4/1/2023 2.2 years 250,000 250,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 4.2 years 500,000 500,000 Total principal amount 1,750,000 1,950,000 Unamortized discount—Convertible Notes (2,559) (3,610) Unamortized discount—Senior Notes (9,332) (12,144) Unamortized deferred financing costs (5,589) (5,624) Carrying amount of debt components $ 1,732,520 $ 1,928,622 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. (2) The coupon on the 2025 Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%. |
Schedule of conversion attributes on Convertible Notes outstanding | The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2020 (amounts in thousands, except rates): December 31, 2020 Conversion Spread Value - Shares (3) Conversion Conversion For the Year Ended December 31, Rate (1) Price (2) 2020 2019 2018 2019 Convertible Notes N/A N/A — — 91 2023 Convertible Notes 38.5959 $ 25.91 — — — (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, 2020, 2019 and 2018, the market price of the Company’s common stock was $19.30, $24.86 and $19.71 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, 2020 | |
Investing and Servicing Segment | |
Summary of fair value and par value of loans sold and amount of sale proceeds used in part to repay the outstanding balance of the repurchase agreements associated with the loans | The following summarizes the face amount and proceeds of commercial and residential loans securitized for the years ended December 31, 2020, 2019 and 2018 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Year Ended December 31, 2020 $ 920,282 $ 975,569 $ 1,770,513 $ 1,826,549 2019 1,781,981 1,845,890 1,256,481 1,305,059 2018 1,517,599 1,563,433 654,017 676,484 |
Commercial and Residential Lending Segment | |
Summary of loans sold and loans transferred as secured borrowings by the Lending segment net of expenses | Loan Transfers Accounted for as Sales Commercial Residential For the Year Ended December 31, Face Amount (1) Proceeds (1) Face Amount Proceeds 2020 $ 446,132 $ 442,833 $ 550 $ 604 2019 751,210 748,045 26,046 26,797 2018 840,400 835,849 6,848 7,072 (1) During the year ended December 31, 2020, we sold $277.9 million and $168.2 million of senior interests in first mortgage loans and whole loan interests, respectively, for proceeds of $270.8 million and $172.0 million, respectively. During the years ended December 31, 2019 and 2018, all sales were of senior interests in first mortgage loans. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 1 1,915 EUR November 2022 Fx contracts – Buy Pounds Sterling ("GBP") 1 1,602 GBP January 2021 Fx contracts – Sell EUR 256 254,243 EUR January 2021-November 2025 Fx contracts – Sell GBP 149 431,836 GBP January 2021 - May 2024 Fx contracts – Sell Australian dollar ("AUD") 16 165,200 AUD August 2021 – June 2022 Interest rate swaps – Paying fixed rates 34 1,707,557 USD May 2023 – January 2031 Interest rate swaps – Receiving fixed rates 1 470,000 USD March 2025 Interest rate caps 22 991,354 USD March 2021 – April 2025 Credit index instruments 4 69,000 USD September 2058 – August 2061 Interest rate swap guarantees 6 378,757 USD March 2022 – June 2025 Total 490 |
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, 2020 and 2019 (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, 2020 2019 2020 2019 Interest rate contracts 33,841 14,385 4 — Interest rate swap guarantees — — 849 614 Foreign exchange contracts 6,585 14,558 39,951 7,834 Credit index instruments 129 — 520 292 Total derivatives $ 40,555 $ 28,943 $ 41,324 $ 8,740 (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 2020 2019 2018 Interest rate contracts (Loss) gain on derivative financial instruments $ (48,692) $ (10,516) $ (1,593) Interest rate swap guarantees (Loss) gain on derivative financial instruments (235) (3,350) (114) Foreign exchange contracts (Loss) gain on derivative financial instruments (32,561) 8,801 36,040 Credit index instruments (Loss) gain on derivative financial instruments (690) (1,245) 270 $ (82,178) $ (6,310) $ 34,603 |
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 2020 $ — $ — $ — Interest expense 2019 $ — $ — $ — Interest expense 2018 $ 8 $ 33 $ — Interest expense |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Derivative assets $ 40,555 $ — $ 40,555 $ 6,716 $ 33,772 $ 67 Derivative liabilities $ 41,324 $ — $ 41,324 $ 6,716 $ 27,416 $ 7,192 Repurchase agreements 5,808,807 — 5,808,807 5,808,807 — — $ 5,850,131 $ — $ 5,850,131 $ 5,815,523 $ 27,416 $ 7,192 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities | |
Summary of assets and liabilities of our consolidated CLO | The following table details the assets and liabilities of our consolidated CLO as of December 31, 2020 and 2019 (amounts in thousands): December 31, 2020 December 31, 2019 Assets: Cash and cash equivalents $ 96,998 $ — Loans held-for-investment 1,002,441 1,073,504 Accrued interest receivable 5,454 3,129 Other assets 557 26,496 Total Assets $ 1,105,450 $ 1,103,129 Liabilities Accounts payable, accrued expenses and other liabilities $ 663 $ 1,362 Collateralized loan obligations, net 930,554 928,060 Total Liabilities $ 931,217 $ 929,422 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 12/9/20 12/31/20 12/30/20 1/15/21 $ 0.48 Quarterly 9/16/20 9/30/20 9/29/20 10/15/20 0.48 Quarterly 6/16/20 6/30/20 6/29/20 7/15/20 0.48 Quarterly 2/25/20 3/31/20 3/30/20 4/15/20 0.48 Quarterly 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 |
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, 2020, 2019 and 2018 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period November 2020 RSU 1,800,000 $ 30,078 3 years 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 (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 May 2020 2,065,322 (1) February 2020 355,910 $ 25.51 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 (1) 1,422,143 shares of common stock were issued with a share price of $13.42 relating to the first quarter base management fee. 643,179 shares of common stock were issued with a share price of $12.25 relating to the first quarter incentive fee. |
Summary of share-based compensation expenses | The following table summarizes our share-based compensation expenses during the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Management fees: Manager incentive fee $ 15,405 $ 10,082 $ 20,700 Base management fee 19,088 — — 2017 Manager Equity Plan (1) 17,987 20,255 12,573 52,480 30,337 33,273 General and administrative: 2017 Equity Plan (1) 13,254 15,900 10,185 13,254 15,900 10,185 Total share-based compensation expense (2) $ 65,734 $ 46,237 $ 43,458 (1) Share-based compensation expense relating to the Manager Equity Plan is reflected within the 2017 Manager Equity Plan. Share-based compensation expense relating to the Non-Executive Director Stock Plan and the Equity Plan are reflected within the 2017 Equity Plan. (2) The income tax benefit associated with the share-based compensation expense for the years ended December 31, 2020, 2019 and 2018 was immaterial. |
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, 2020 1,413,170 1,305,597 2,718,767 $ 22.74 Granted 1,014,753 1,800,000 2,814,753 14.64 Vested (807,854) (818,701) (1,626,555) 21.93 Forfeited (25,464) — (25,464) 14.06 Balance as of December 31, 2020 1,594,605 2,286,896 3,881,501 17.26 (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 2021 790,918 991,619 1,782,537 2022 487,506 845,277 1,332,783 2023 316,181 450,000 766,181 Total 1,594,605 2,286,896 3,881,501 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 2018 Basic Earnings Income attributable to STWD common stockholders $ 331,689 $ 509,664 $ 385,830 Less: Income attributable to participating shares not already deducted as non-controlling interests (5,216) (3,873) (3,592) Basic earnings $ 326,473 $ 505,791 $ 382,238 Diluted Earnings Income attributable to STWD common stockholders $ 331,689 $ 509,664 $ 385,830 Less: Income attributable to participating shares not already deducted as non-controlling interests (5,216) (3,873) (3,592) Add: Interest expense on Convertible Notes (1) * 12,354 25,148 Add: Loss on extinguishment of Convertible Notes (1) * — 2,099 Diluted earnings $ 326,473 $ 518,145 $ 409,485 Number of Shares: Basic — Average shares outstanding 281,978 279,337 265,279 Effect of dilutive securities — Convertible Notes (1) * 9,805 22,659 Effect of dilutive securities — Contingently issuable shares 383 360 546 Effect of dilutive securities — Unvested non-participating shares 122 210 — Diluted — Average shares outstanding 282,483 289,712 288,484 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.16 $ 1.81 $ 1.44 Diluted $ 1.16 $ 1.79 $ 1.42 (1) The Company does not intend 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, 2020, 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, 2020 | |
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, 2018 $ 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 OCI before reclassifications — (6,939) — (6,939) Amounts reclassified from AOCI — — — — Net period OCI — (6,939) — (6,939) Balance at December 31, 2020 $ — $ 44,057 $ (64) $ 43,993 |
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, 2020, 2019 and 2018 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 2020 2019 2018 of Operations Gain on cash flow hedges: Interest rate contracts — — $ 33 Interest expense Unrealized gains on available-for-sale securities: Interest realized upon collection $ — $ 59 46 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 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 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 (amounts in thousands): December 31, 2020 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 1,022,979 $ — $ — $ 1,022,979 RMBS 167,349 — — 167,349 CMBS 19,457 — — 19,457 Equity security 11,247 11,247 — — Domestic servicing rights 13,202 — — 13,202 Derivative assets 40,555 — 40,555 — VIE assets 64,238,328 — — 64,238,328 Total $ 65,513,117 $ 11,247 $ 40,555 $ 65,461,315 Financial Liabilities: Derivative liabilities $ 41,324 $ — $ 41,324 $ — VIE liabilities 62,776,371 — 60,756,495 2,019,876 Total $ 62,817,695 $ — $ 60,797,819 $ 2,019,876 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 |
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, 2020 and 2019 (amounts in thousands): Domestic Loans at Servicing VIE Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2019 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) 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 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 133,124 — 6,991 (3,715) (2,405,599) 128,747 (2,140,452) Net accretion — 10,712 — — — — 10,712 Included in OCI — (6,939) — — — — (6,939) Purchases / Originations 2,304,924 — — — — — 2,304,924 Sales (2,802,722) — (7,940) — — — (2,810,662) Issuances — — — — — (29,927) (29,927) Cash repayments / receipts (225,155) (26,000) (4,829) — — (9,901) (265,885) Transfers into Level III — — — — — (1,393,905) (1,393,905) Transfers out of Level III — — — — — 1,902,944 1,902,944 Transfers within Level III 176,614 — — — (176,614) — — Consolidation of VIEs — — — — 4,665,636 (101,690) 4,563,946 Deconsolidation of VIEs — — 227 — (32,270) 21,248 (10,795) December 31, 2020 balance $ 1,022,979 $ 167,349 $ 19,457 $ 13,202 $ 64,238,328 $ (2,019,876) $ 63,441,439 Amount of unrealized (losses) gains attributable to assets still held at December 31, 2020: Included in earnings $ 26,041 10,712 1,127 (3,715) (2,327,393) 128,747 $ (2,164,481) Included in OCI — (6,939) — — — — (6,939) Amount of unrealized (losses) gains included in earnings attributable to assets still held at 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, 2020 December 31, 2019 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans held-for-sale $ 11,116,929 $ 11,107,316 $ 10,034,030 $ 10,086,372 HTM debt securities 538,605 515,253 570,638 568,727 Financial liabilities not carried at fair value: Secured financing agreements and CLO $ 11,076,744 $ 11,108,364 $ 9,834,108 $ 9,826,511 Unsecured senior notes 1,732,520 1,786,667 1,928,622 2,022,283 |
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 (Weighted Average) as of (1) December 31, 2020 Technique Input December 31, 2020 December 31, 2019 Loans under fair value option $ 1,022,979 Discounted cash flow, market pricing Coupon (d) 3.3% - 9.7% (5.9%) 3.4% - 5.9% Remaining contractual term (d) 7.3 - 39.3 years ( 26.3 years) 8.3 - 39.9 years FICO score (a) 519 - 823 (727) 580 - 823 LTV (b) 5% - 94% (68%) 6% - 94% Purchase price (d) 84.4% - 104.8% (99.8%) 85.6% - 104.8% RMBS 167,349 Discounted cash flow Constant prepayment rate (a) 3.6% - 19.4% (7.6%) 3.1% - 24.9% Constant default rate (b) 0.7% - 5.4% (2.4%) 0.5% - 5.0% Loss severity (b) 0% - 85% (20%) (f) 0% - 93% (f) Delinquency rate (c) 10% - 32% (19%) 5% - 29% Servicer advances (a) 23% - 82% (54%) 27% - 85% Annual coupon deterioration (b) 0.0% - 0.9% (0.1%) 0% - 1.6% Putback amount per projected total collateral loss (e) 0% -17% (0.8%) 0% - 28% CMBS 19,457 Discounted cash flow Yield (b) 0% - 536.6% (7.1%) 0% - 122.9% Duration (c) 0 - 7.6 years ( 5.3 years) 0 - 9.7 years Domestic servicing rights 13,202 Discounted cash flow Debt yield (a) 7.50% (7.50%) 7.50% Discount rate (b) 15% (15%) 15% VIE assets 64,238,328 Discounted cash flow Yield (b) 0% - 312.2% (14.3%) 0% - 690.7% Duration (c) 0 - 16.3 years ( 3.8 years) 0 - 19.2 years VIE liabilities (2,019,876) Discounted cash flow Yield (b) 0% - 312.2% (14.4%) 0% - 690.7% Duration (c) 0 - 10.8 years ( 3.8 years) 0 - 12.7 years (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of December 31, 2020. Information about Uncertainty of Fair Value Measurements (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) This unobservable input is not subject to variability as of the respective reporting dates. (e) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (f) 23% and 34% of the portfolio falls within a range of 45% - 80% as of December 31, 2020 and 2019, respectively . |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes | |
Schedule of income tax provision | Our income tax provision consisted of the following for the years ended December 31, 2020, 2019 and 2018 (in thousands): For the year ended December 31, 2020 2019 2018 Current Federal $ 5,690 $ 4,917 $ 10,508 State 3,201 3,182 3,010 Foreign 195 977 293 Total current 9,086 9,076 13,811 Deferred Federal 8,213 3,869 1,189 State 2,898 287 330 Total deferred 11,111 4,156 1,519 Total income tax provision $ 20,197 $ 13,232 $ 15,330 |
Schedule of tax effects of temporary differences on net deferred tax assets | December 31, 2020 2019 Deferred tax asset, net Reserves and accruals $ 4,571 $ 4,017 Domestic intangible assets (1,672) 8,185 Lease assets (310) (1,950) Lease liabilities 579 2,752 Investment in unconsolidated entities (1,236) (116) Deferred income — 19 Net operating and capital loss carryforwards 974 885 Other U.S. temporary differences 2 228 Net deferred tax assets $ 2,908 $ 14,020 |
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, 2020, 2019 and 2018 (dollars in thousands): For the Year Ended December 31, 2020 2019 2018 Federal statutory tax rate $ 81,118 21.0 % $ 115,535 21.0 % $ 89,571 21.0 % REIT and other non-taxable loss (58,265) (15.1) % (106,301) (19.3) % (77,972) (18.3) % State income taxes 7,509 1.9 % 3,034 0.5 % 3,038 0.7 % Federal benefit of state tax deduction (1,577) (0.4) % (637) (0.1) % (638) (0.1) % Net operating loss carryback rate differential (3,387) (0.9) % — — % — — % Intra-entity transfer (5,385) (1.4) % — — % — — Other 184 0.1 % 1,601 0.3 % 1,331 0.3 % Effective tax rate $ 20,197 5.2 % $ 13,232 2.4 % $ 15,330 3.6 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies. | |
Schedule of lease costs and sublease income | For the Year Ended December 31, 2020 2019 2018 Operating lease costs $ 5,571 $ 5,634 $ 4,962 Short-term lease costs 42 115 210 Sublease income (1,509) (1,613) (1,643) Total lease cost $ 4,104 $ 4,136 $ 3,529 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheets as of December 31, 2020 and 2019, is as follows (dollars in thousands): For the Year Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities—operating $ 6,268 $ 5,215 December 31, 2020 December 31, 2019 Weighted-average remaining lease term 7.0 years 6.0 years Weighted-average discount rate 4.1 % 4.4 % |
Schedule of Future maturity of operating lease liabilities | Future maturity of operating lease liabilities: 2021 $ 3,480 2022 1,272 2023 1,281 2024 1,290 2025 1,350 Thereafter 4,461 Total 13,134 Less interest component (1,691) Operating lease liability $ 11,443 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment and Geographic Data | |
Schedule of results of operations by business segment | The table below presents our results of operations for the year ended December 31, 2020 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 $ 665,503 $ 77,851 $ — $ 8,589 $ — $ 751,943 $ — $ 751,943 Interest income from investment securities 78,490 2,637 — 93,823 — 174,950 (120,538) 54,412 Servicing fees 549 — — 41,806 — 42,355 (12,721) 29,634 Rental income 4,706 — 255,452 37,670 — 297,828 — 297,828 Other revenues 412 499 293 1,139 — 2,343 (5) 2,338 Total revenues 749,660 80,987 255,745 183,027 — 1,269,419 (133,264) 1,136,155 Costs and expenses: Management fees 796 — — 901 125,372 127,069 58 127,127 Interest expense 176,230 40,913 65,390 24,303 113,313 420,149 (386) 419,763 General and administrative 41,972 15,673 4,542 80,039 15,312 157,538 336 157,874 Acquisition and investment pursuit costs 2,406 1,183 12 (29) — 3,572 — 3,572 Costs of rental operations 3,186 — 97,136 17,354 — 117,676 — 117,676 Depreciation and amortization 1,708 342 76,246 16,109 — 94,405 — 94,405 Credit loss provision (reversal), net 47,256 (4,103) — — — 43,153 — 43,153 Other expense 307 — 531 — — 838 — 838 Total costs and expenses 273,861 54,008 243,857 138,677 253,997 964,400 8 964,408 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 78,258 78,258 Change in fair value of servicing rights — — — 11,415 — 11,415 (15,130) (3,715) Change in fair value of investment securities, net (15,108) — — (51,403) — (66,511) 71,904 5,393 Change in fair value of mortgage loans, net 76,897 — — 56,227 — 133,124 — 133,124 Earnings (loss) from unconsolidated entities 8,779 (767) — 30,845 — 38,857 (1,540) 37,317 (Loss) gain on sale of investments and other assets, net (961) 306 — 7,965 — 7,310 — 7,310 (Loss) gain on derivative financial instruments, net (58,664) (1,499) (34,392) (21,269) 33,646 (82,178) — (82,178) Foreign currency gain (loss), net 42,205 207 (14) (3) — 42,395 — 42,395 Loss on extinguishment of debt (22) (959) (2,185) — (488) (3,654) — (3,654) Other (loss) income, net — — (166) 447 — 281 — 281 Total other income (loss) 53,126 (2,712) (36,757) 34,224 33,158 81,039 133,492 214,531 Income (loss) before income taxes 528,925 24,267 (24,869) 78,574 (220,839) 386,058 220 386,278 Income tax (provision) benefit (21,091) (117) — 1,011 — (20,197) — (20,197) Net income (loss) 507,834 24,150 (24,869) 79,585 (220,839) 365,861 220 366,081 Net income attributable to non-controlling interests (14) — (20,394) (13,764) — (34,172) (220) (34,392) Net income (loss) attributable to Starwood Property Trust, Inc . $ 507,820 $ 24,150 $ (45,263) $ 65,821 $ (220,839) $ 331,689 $ — $ 331,689 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 Credit 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, 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 Credit 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, 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 |
Schedule of consolidated balance sheet by business segment | The table below presents our consolidated balance sheet as of December 31, 2020 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 $ 160,007 $ 4,440 $ 32,080 $ 19,546 $ 346,372 $ 562,445 $ 772 $ 563,217 Restricted cash 93,445 45,113 7,192 13,195 — 158,945 — 158,945 Loans held-for-investment, net 9,673,625 1,412,440 — 1,008 — 11,087,073 — 11,087,073 Loans held-for-sale 841,963 120,540 — 90,332 — 1,052,835 — 1,052,835 Investment securities 1,014,402 35,681 — 1,112,145 — 2,162,228 (1,425,570) 736,658 Properties, net 103,896 — 1,969,414 197,843 — 2,271,153 — 2,271,153 Intangible assets — — 40,370 71,123 — 111,493 (41,376) 70,117 Investment in unconsolidated entities 54,407 25,095 — 44,664 — 124,166 (16,112) 108,054 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 6,595 — 41 147 33,772 40,555 — 40,555 Accrued interest receivable 87,922 2,091 — 123 5,978 96,114 (134) 95,980 Other assets 61,638 4,531 69,859 44,579 10,148 190,755 (7) 190,748 VIE assets, at fair value — — — — — — 64,238,328 64,238,328 Total Assets $ 12,097,900 $ 1,769,340 $ 2,118,956 $ 1,735,142 $ 396,270 $ 18,117,608 $ 62,755,901 $ 80,873,509 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 41,104 $ 12,144 $ 43,630 $ 45,309 $ 64,583 $ 206,770 $ 75 $ 206,845 Related-party payable — — — 5 39,165 39,170 — 39,170 Dividends payable — — — — 137,959 137,959 — 137,959 Derivative liabilities 39,082 1,718 — 524 — 41,324 — 41,324 Secured financing agreements, net 5,893,999 1,240,763 1,794,609 606,100 632,719 10,168,190 (22,000) 10,146,190 Collateralized loan obligations, net 930,554 — — — — 930,554 — 930,554 Unsecured senior notes, net — — — — 1,732,520 1,732,520 — 1,732,520 VIE liabilities, at fair value — — — — — — 62,776,371 62,776,371 Total Liabilities 6,904,739 1,254,625 1,838,239 651,938 2,606,946 13,256,487 62,754,446 76,010,933 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,921 2,921 — 2,921 Additional paid-in capital 1,192,584 496,387 98,882 (322,992) 3,744,878 5,209,739 — 5,209,739 Treasury stock — — — — (138,022) (138,022) — (138,022) Accumulated other comprehensive income (loss) 44,057 — — (64) — 43,993 — 43,993 Retained earnings (accumulated deficit) 3,956,405 18,328 (44,832) 1,260,819 (5,820,453) (629,733) — (629,733) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,193,046 514,715 54,050 937,763 (2,210,676) 4,488,898 — 4,488,898 Non-controlling interests in consolidated subsidiaries 115 — 226,667 145,441 — 372,223 1,455 373,678 Total Equity 5,193,161 514,715 280,717 1,083,204 (2,210,676) 4,861,121 1,455 4,862,576 Total Liabilities and Equity $ 12,097,900 $ 1,769,340 $ 2,118,956 $ 1,735,142 $ 396,270 $ 18,117,608 $ 62,755,901 $ 80,873,509 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 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020: Revenues $ 312,560 $ 265,606 $ 267,427 $ 290,562 Net (loss) income (66,269) 152,961 164,734 114,655 Net (loss) income attributable to Starwood Property Trust, Inc. (66,769) 139,656 151,834 106,968 (Loss) earnings per share — Basic (0.24) 0.49 0.53 0.37 (Loss) earnings per share — Diluted (0.24) 0.49 0.52 0.37 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 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
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 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
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] | us-gaap:OtherAssetsMember | |||
Operating Lease, Liability | $ 11,443 | $ 12,000 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | ||
Assets: | ||||
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 | |||
ASU 2016-13 | Reclassification Adjustment | ||||
Credit Losses | ||||
Allowance for credit losses | $ 32,300 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Details) $ / shares in Units, $ in Thousands, € in Millions, ft² in Millions | Dec. 23, 2019USD ($)property | Dec. 23, 2019EUR (€)property | Oct. 15, 2018USD ($)item | Sep. 19, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)itemproperty | Sep. 30, 2017ft²property | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)propertyitemshares | Dec. 31, 2019USD ($)propertyshares | Dec. 31, 2018USD ($)propertyitem$ / sharesshares | Dec. 31, 2017USD ($)propertyshares | Dec. 31, 2016USD ($)ft²itemproperty | Dec. 31, 2015USD ($)itemproperty | Dec. 31, 2018USD ($)property | Dec. 31, 2018USD ($)shares | Dec. 31, 2016ft²property | Dec. 23, 2019EUR (€) |
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | ||||||||||||||||||||||||
Non-controlling interest | $ 300 | ||||||||||||||||||||||||
Principal Amount | $ 1,750,000 | $ 1,950,000 | $ 1,750,000 | $ 1,950,000 | |||||||||||||||||||||
Number of properties sold | property | 16 | ||||||||||||||||||||||||
Proceeds from sale of operating properties | $ 313,300 | ||||||||||||||||||||||||
Gain on sale of property | 7,900 | 59,700 | 55,100 | ||||||||||||||||||||||
Liabilities assumed: | |||||||||||||||||||||||||
Revenues | 290,562 | $ 267,427 | $ 265,606 | $ 312,560 | 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | 1,136,155 | 1,196,419 | 1,109,280 | ||||||||||||||
Net income (loss) | 114,655 | $ 164,734 | $ 152,961 | $ (66,269) | 177,980 | $ 150,001 | $ 132,446 | $ 76,508 | 366,081 | 536,935 | 411,197 | ||||||||||||||
(Loss) gain on derivative financial instruments, net | (82,178) | (6,310) | 34,603 | ||||||||||||||||||||||
Goodwill | 259,846 | 259,846 | $ 259,846 | $ 259,846 | |||||||||||||||||||||
Ireland Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Accumulated depreciation | € | € 67.5 | ||||||||||||||||||||||||
Basis in assets | € | 394.7 | ||||||||||||||||||||||||
Gain (Loss) on Disposition of Assets | $ 119,700 | € 108 | |||||||||||||||||||||||
Withhold Tax Reduction Of Purchase Price | € | 20.7 | ||||||||||||||||||||||||
Aggregate gross acquisition price | € | € 530 | ||||||||||||||||||||||||
Ireland Portfolio | Net Leased Office Property | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of industrial properties sold | property | 11 | 11 | |||||||||||||||||||||||
Ireland Portfolio | Multifamily Property | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of industrial properties sold | property | 1 | 1 | |||||||||||||||||||||||
Infrastructure Lending Segment of GE Capital | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Purchase price | $ 147,100 | $ 2,000,000 | 2,158,553 | ||||||||||||||||||||||
Funded commitments | $ 2,100,000 | ||||||||||||||||||||||||
Number of additional loans acquired | item | 2 | ||||||||||||||||||||||||
Unfunded commitments | $ 466,300 | ||||||||||||||||||||||||
Principal Amount | 1,700,000 | ||||||||||||||||||||||||
Assets acquired: | |||||||||||||||||||||||||
Loans held-for-investment | 1,649,630 | $ 1,649,630 | $ 1,649,630 | ||||||||||||||||||||||
Loans held-for-sale | 319,710 | 319,710 | 319,710 | ||||||||||||||||||||||
Investment securities | 65,060 | 65,060 | 65,060 | ||||||||||||||||||||||
Accrued interest receivable | 13,843 | 13,843 | 13,843 | ||||||||||||||||||||||
Total assets acquired | 2,048,243 | 2,048,243 | 2,048,243 | ||||||||||||||||||||||
Liabilities assumed: | |||||||||||||||||||||||||
Accounts payable, accrued expenses and other liabilities | 8,817 | 8,817 | 8,817 | ||||||||||||||||||||||
Derivative liabilities | 282 | 282 | 282 | ||||||||||||||||||||||
Total liabilities assumed | 9,099 | 9,099 | 9,099 | ||||||||||||||||||||||
Net assets acquired | 2,039,144 | 2,039,144 | 2,039,144 | ||||||||||||||||||||||
Goodwill | $ 119,400 | 119,409 | 119,409 | 119,409 | |||||||||||||||||||||
Pro forma revenue and net income | |||||||||||||||||||||||||
Revenues | 1,182,892 | ||||||||||||||||||||||||
Net income attributable to STWD | $ 392,505 | ||||||||||||||||||||||||
Net income per share - Basic | $ / shares | $ 1.47 | ||||||||||||||||||||||||
Net income per share - Diluted | $ / shares | $ 1.44 | ||||||||||||||||||||||||
Master Lease Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of retail properties acquired | property | 16 | ||||||||||||||||||||||||
Term of master lease agreements | 24 years 7 months 6 days | ||||||||||||||||||||||||
Number of square feet of properties | ft² | 1.9 | ||||||||||||||||||||||||
Master Lease Portfolio | Utah, Florida, Texas and Minnesota | Minimum | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Concentration risk (as a percent) | 50.00% | ||||||||||||||||||||||||
Master Lease Portfolio | Disposed of by sale | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of industrial properties sold | property | 3 | ||||||||||||||||||||||||
Number of properties sold | property | 0 | 0 | 4 | ||||||||||||||||||||||
Proceeds from sale of property | $ 235,400 | ||||||||||||||||||||||||
Gain on sale of property | $ 28,500 | ||||||||||||||||||||||||
Medical Office Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Area of property | ft² | 1.9 | 1.9 | |||||||||||||||||||||||
Number of acquired properties closed | item | 34 | ||||||||||||||||||||||||
Woodstar Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of properties in portfolio investment | property | 32 | 32 | |||||||||||||||||||||||
Number of acquired properties closed | item | 14 | 18 | |||||||||||||||||||||||
Number of units acquired | item | 8,948 | ||||||||||||||||||||||||
Ireland Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Purchase price | € | € 507.6 | ||||||||||||||||||||||||
Fair Value Hedge Assets | $ 16,600 | ||||||||||||||||||||||||
Number of properties sold | property | 0 | 4 | 0 | ||||||||||||||||||||||
Proceeds from sale of operating properties | $ 407,200 | ||||||||||||||||||||||||
Ireland Portfolio | Ireland Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Third party debt | € | € 316.3 | ||||||||||||||||||||||||
REIS Equity Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Number of properties sold | property | 1 | ||||||||||||||||||||||||
Proceeds from sale of operating properties | $ 25,000 | $ 145,900 | |||||||||||||||||||||||
REIS Equity Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Non-controlling interest | $ 300 | ||||||||||||||||||||||||
Woodstar II Portfolio | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Purchase price | $ 156,200 | $ 408,900 | |||||||||||||||||||||||
Contingent consideration | $ 10,800 | $ 29,200 | $ 10,800 | 29,200 | 29,200 | ||||||||||||||||||||
Maturity period | 10 years | 10 years | |||||||||||||||||||||||
Amount issued | $ 116,700 | $ 116,700 | |||||||||||||||||||||||
Interest rate (as a percent) | 3.81% | 3.81% | |||||||||||||||||||||||
Number of properties acquired | property | 19 | ||||||||||||||||||||||||
Percentage of occupied portfolio | 100.00% | ||||||||||||||||||||||||
Capitalized acquisition costs | $ 4,100 | 4,100 | 4,100 | ||||||||||||||||||||||
Principal Amount | $ 300,900 | 300,900 | 300,900 | ||||||||||||||||||||||
Number of properties in portfolio investment | property | 8 | 27 | 27 | ||||||||||||||||||||||
Initial aggregate purchase price | $ 438,100 | $ 438,100 | $ 438,100 | ||||||||||||||||||||||
Number of acquired properties closed | item | 8 | 19 | |||||||||||||||||||||||
Number of units acquired | property | 1,740 | 6,109 | 4,369 | 6,109 | |||||||||||||||||||||
Woodstar II Portfolio | Class A Units | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Shares issued | shares | 100,000 | 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 | $ 310,700 | |||||||||||||||||||||||
Woodstar II Portfolio | SPT Dolphin | Class A Units | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Shares issued | shares | 7,403,731 | 10,183,505 | 10,200,000 | ||||||||||||||||||||||
Number of Shares Issued for contingent consideration | shares | 62,323 | 120,926 | 1,727,314 | ||||||||||||||||||||||
Right to receive additional shares | shares | 1,910,563 | 1,411,642 | 1,910,563 | 1,900,000 | |||||||||||||||||||||
Redemption of units | shares | 493,318 | 974,176 | 0 | ||||||||||||||||||||||
Number of common stock per unit | shares | 1 | 1 | |||||||||||||||||||||||
Woodstar II Portfolio | Weighted-average | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Interest rate (as a percent) | 3.82% | 3.82% | 3.82% | ||||||||||||||||||||||
Woodstar II Portfolio | Additional Mortgage Facilities Acquired | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Amount issued | $ 27,000 | $ 27,000 | $ 27,000 | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Non-Controlling Interests | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Gain on sale of property | $ 100 | $ 5,300 | $ 5,100 | ||||||||||||||||||||||
Liabilities assumed: | |||||||||||||||||||||||||
Net income (loss) | $ 34,392 | $ 27,271 | 25,367 | ||||||||||||||||||||||
Non-Controlling Interests | Woodstar II Portfolio | SPT Dolphin | Class A Units | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Redemption of units | shares | 226,700,000 | 235,900,000 | |||||||||||||||||||||||
Investing and Servicing Segment | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Payment to acquire investment property | $ 8,600 | $ 52,700 | |||||||||||||||||||||||
Number of retail properties acquired | property | 0 | ||||||||||||||||||||||||
Number of industrial properties acquired | property | 3 | ||||||||||||||||||||||||
Purchase price | $ 207,400 | $ 207,400 | $ 207,400 | $ 207,400 | |||||||||||||||||||||
Number of properties acquired by a third party which already held a non-controlling interest in the property | property | 1 | ||||||||||||||||||||||||
Non-controlling interest | $ 300 | ||||||||||||||||||||||||
Number of real estate businesses acquired | property | 14 | 14 | 14 | 14 | |||||||||||||||||||||
Number of properties in portfolio investment | property | 15 | ||||||||||||||||||||||||
Aggregate gross acquisition price | $ 8,800 | $ 53,100 | |||||||||||||||||||||||
Number of properties sold | property | 1 | 4 | 9 | ||||||||||||||||||||||
Proceeds from sale of property | $ 24,100 | $ 145,900 | $ 77,900 | ||||||||||||||||||||||
Gain on sale of property | 7,400 | 59,700 | 26,600 | ||||||||||||||||||||||
Liabilities assumed: | |||||||||||||||||||||||||
Goodwill | $ 140,400 | $ 140,400 | $ 140,400 | 140,400 | |||||||||||||||||||||
Investing and Servicing Segment | Non-Controlling Interests | |||||||||||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||||||||||
Gain on sale of property | $ 5,300 | $ 5,100 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Determination of Goodwill (Details) - USD ($) $ in Thousands | Oct. 15, 2018 | Sep. 19, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Acquisitions and Divestitures | |||||
Goodwill | $ 259,846 | $ 259,846 | |||
Repayment of debt of consolidated VIEs | $ 522,348 | $ 373,155 | $ 410,453 | ||
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, 2020 | Dec. 31, 2019 |
Restricted cash | ||
Cash collateral for derivative financial instruments | $ 89,323 | $ 37,912 |
Cash restricted by lender | 42,992 | 40,818 |
Funds held on behalf of borrowers and tenants | 19,517 | 11,903 |
Other restricted cash | 7,113 | 5,010 |
Restricted cash | $ 158,945 | $ 95,643 |
Loans - Held for Investment (De
Loans - Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in loans | ||||
Total gross loans | $ 12,217,352 | $ 11,503,835 | ||
Face Amount | 12,262,840 | 11,530,915 | ||
Total allowance | (77,444) | (33,611) | ||
Carrying Value | 12,139,908 | 11,470,224 | $ 9,794,254 | $ 7,382,641 |
Total distributions received from residual profit participation | 0 | 0 | ||
Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 11,164,517 | 10,619,489 | ||
Face Amount | 11,230,344 | 10,661,865 | ||
Total allowance | (77,444) | (33,415) | ||
Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 1,052,835 | 884,346 | ||
Face Amount | 1,032,496 | 869,050 | ||
Carrying Value | 1,052,835 | 884,150 | 1,187,552 | 745,743 |
Commercial Portfolio Segment | ||||
Investments in loans | ||||
Total gross loans | 9,653,560 | |||
Loans with no related allowance | 29,000 | |||
Commercial Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 9,653,560 | 8,550,469 | ||
Face Amount | 9,703,608 | 8,590,776 | ||
Total allowance | (69,611) | (33,415) | ||
Carrying Value | 9,583,949 | 8,517,054 | 7,075,577 | 6,561,296 |
Infrastructure Portfolio Segment | ||||
Investments in loans | ||||
Total gross loans | 1,420,273 | |||
Reclassification to held-for-sale | 174,600 | |||
Reclassification to held for investment | 104,300 | |||
Infrastructure Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 1,420,273 | 1,397,448 | ||
Face Amount | $ 1,439,940 | $ 1,416,164 | ||
Weighted Average Life | 4 years 3 months 18 days | 4 years 10 months 24 days | ||
Total allowance | $ (7,833) | |||
Carrying Value | $ 1,412,440 | $ 1,397,448 | 1,456,779 | |
Infrastructure Portfolio Segment | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 4.40% | 5.60% | ||
Infrastructure Portfolio Segment | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 120,540 | $ 119,724 | ||
Face Amount | $ 120,900 | $ 121,271 | ||
Weighted Average Life | 3 years 2 months 12 days | 2 years 1 month 6 days | ||
Total allowance | $ (196) | |||
Infrastructure Portfolio Segment | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 3.10% | 3.30% | ||
Residential Portfolio Segment | ||||
Investments in loans | ||||
Weighted Average Life | 27 years 10 months 24 days | 29 years 3 months 18 days | ||
Residential Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Carrying Value | $ 90,684 | $ 671,572 | $ 1,199 | |
Residential Portfolio Segment | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 90,684 | |||
RMBS, fair value option | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 841,963 | 605,384 | ||
Face Amount | $ 820,807 | $ 587,144 | ||
RMBS, fair value option | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.00% | 6.20% | ||
CMBS, fair value option | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 90,332 | $ 159,238 | ||
Face Amount | $ 90,789 | $ 160,635 | ||
Weighted Average Life | 10 years | 10 years | ||
CMBS, fair value option | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 3.90% | 3.90% | ||
First mortgage loan participation | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 8,931,772 | $ 7,928,026 | ||
Face Amount | $ 8,978,373 | $ 7,962,788 | ||
Weighted Average Life | 1 year 6 months | 2 years | ||
First mortgage loan participation | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.30% | 5.80% | ||
Subordinated mortgages | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 71,185 | $ 75,724 | ||
Face Amount | $ 72,257 | $ 77,055 | ||
Weighted Average Life | 2 years 9 months 18 days | 3 years 4 months 24 days | ||
Subordinated mortgages | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.80% | 8.80% | ||
Mezzanine Loans | ||||
Investments in loans | ||||
Carrying Value | $ 877,300 | $ 967,000 | ||
Mezzanine Loans | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 620,319 | 484,164 | ||
Face Amount | $ 619,352 | $ 484,408 | ||
Weighted Average Life | 1 year 7 months 6 days | 1 year 10 months 24 days | ||
Mezzanine Loans | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 10.10% | 11.00% | ||
Other | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 30,284 | $ 62,555 | ||
Face Amount | $ 33,626 | $ 66,525 | ||
Weighted Average Life | 1 year 9 months 18 days | 1 year 7 months 6 days | ||
Other | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.90% | 8.20% | ||
Mortgage, Residual Profit Participation | Retail and Hospitality Property | ||||
Investments in loans | ||||
Total distributions received from residual profit participation | $ 15,100 | |||
Residential loans, fair value option | ||||
Investments in loans | ||||
Reclassification to held-for-sale | $ 575,300 | |||
Reclassification to held for investment | $ 340,900 | |||
Residential loans, fair value option | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 90,684 | 671,572 | ||
Face Amount | $ 86,796 | $ 654,925 | ||
Residential loans, fair value option | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.00% | 6.10% |
Loans - Variable Rate Loans Hel
Loans - Variable Rate Loans Held for Investment (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 10,423,863 |
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 | $ 9,003,590 |
Weighted average spread of loans (as a percent) | 4.30% |
Infrastructure loans | |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 1,420,273 |
Weighted average spread of loans (as a percent) | 3.80% |
Loans - Ratings (Details)
Loans - Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in loans | ||
Loans Amortized Cost Basis | $ 12,217,352 | $ 11,503,835 |
Credit Loss Allowance | 77,444 | |
Total loans held-for-investment | ||
Investments in loans | ||
Loans Amortized Cost Basis | 11,164,517 | 10,619,489 |
Total loans held-for-investment | First mortgage loan participation | ||
Investments in loans | ||
Loans Amortized Cost Basis | 8,931,772 | 7,928,026 |
Total loans held-for-investment | Subordinated mortgages | ||
Investments in loans | ||
Loans Amortized Cost Basis | 71,185 | 75,724 |
Total loans held-for-investment | Mezzanine Loans | ||
Investments in loans | ||
Loans Amortized Cost Basis | 620,319 | 484,164 |
Total loans held-for-investment | Residential loans, fair value option | ||
Investments in loans | ||
Loans Amortized Cost Basis | 90,684 | 671,572 |
Total loans held-for-investment | Other | ||
Investments in loans | ||
Loans Amortized Cost Basis | 30,284 | 62,555 |
Loans held-for-sale | ||
Investments in loans | ||
Loans Amortized Cost Basis | 1,052,835 | 884,346 |
Commercial Portfolio Segment | ||
Investments in loans | ||
2020 | 1,452,283 | |
2019 | 3,359,484 | |
2018 | 2,989,500 | |
2017 | 1,247,700 | |
2016 | 187,902 | |
Prior | 416,691 | |
Loans Amortized Cost Basis | 9,653,560 | |
Credit Loss Allowance | 69,611 | |
Commercial Portfolio Segment | 90 days or greater past due | ||
Investments in loans | ||
Loans Amortized Cost Basis | 184,100 | |
Commercial Portfolio Segment | LTV Less than 60% | ||
Investments in loans | ||
2020 | 751,090 | |
2019 | 1,087,183 | |
2018 | 1,022,495 | |
2017 | 1,062,362 | |
2016 | 134,420 | |
Prior | 267,650 | |
Loans Amortized Cost Basis | 4,325,200 | |
Credit Loss Allowance | 8,801 | |
Commercial Portfolio Segment | LTV 60% - 70% | ||
Investments in loans | ||
2020 | 301,225 | |
2019 | 1,640,009 | |
2018 | 1,625,379 | |
2017 | 36,581 | |
2016 | 53,482 | |
Prior | 39,195 | |
Loans Amortized Cost Basis | 3,695,871 | |
Credit Loss Allowance | 24,842 | |
Commercial Portfolio Segment | LTV > 70% | ||
Investments in loans | ||
2020 | 399,968 | |
2019 | 632,292 | |
2018 | 312,640 | |
2017 | 141,002 | |
Prior | 75,340 | |
Loans Amortized Cost Basis | 1,561,242 | |
Credit Loss Allowance | 19,946 | |
Commercial Portfolio Segment | Credit deteriorated | ||
Investments in loans | ||
2018 | 28,986 | |
2017 | 7,755 | |
Prior | 11,977 | |
Loans Amortized Cost Basis | 48,718 | |
Credit Loss Allowance | 16,022 | |
Commercial Portfolio Segment | Defeased and other | ||
Investments in loans | ||
Prior | 22,529 | |
Loans Amortized Cost Basis | 22,529 | |
Commercial Portfolio Segment | Total loans held-for-investment | ||
Investments in loans | ||
Loans Amortized Cost Basis | 9,653,560 | 8,550,469 |
Infrastructure Portfolio Segment | ||
Investments in loans | ||
2020 | 74,817 | |
2019 | 467,502 | |
2018 | 370,637 | |
2017 | 109,604 | |
2016 | 166,922 | |
Prior | 211,795 | |
Revolving Loans Amortized Cost Total | 18,996 | |
Loans Amortized Cost Basis | 1,420,273 | |
Credit Loss Allowance | 7,833 | |
Infrastructure Portfolio Segment | Power | ||
Investments in loans | ||
2020 | 74,817 | |
2019 | 222,733 | |
2018 | 268,960 | |
2017 | 109,604 | |
2016 | 166,922 | |
Prior | 211,795 | |
Revolving Loans Amortized Cost Total | 13,963 | |
Loans Amortized Cost Basis | 1,068,794 | |
Credit Loss Allowance | 4,295 | |
Infrastructure Portfolio Segment | Oil and gas | ||
Investments in loans | ||
2019 | 244,769 | |
2018 | 101,677 | |
Revolving Loans Amortized Cost Total | 5,033 | |
Loans Amortized Cost Basis | 351,479 | |
Credit Loss Allowance | 3,538 | |
Infrastructure Portfolio Segment | Total loans held-for-investment | ||
Investments in loans | ||
Loans Amortized Cost Basis | 1,420,273 | 1,397,448 |
Infrastructure Portfolio Segment | Loans held-for-sale | ||
Investments in loans | ||
Loans Amortized Cost Basis | 120,540 | $ 119,724 |
Residential Portfolio Segment | 90 days or greater past due | ||
Investments in loans | ||
Loans Amortized Cost Basis | 18,600 | |
Residential Portfolio Segment | Loans held-for-sale | ||
Investments in loans | ||
Loans Amortized Cost Basis | $ 90,684 |
Loans - Activity in Portfolio (
Loans - Activity in Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | $ 33,611 | ||
Credit loss allowance at the end of the period | 77,444 | $ 33,611 | |
Activity in loan portfolio | |||
Balance at the beginning of the period | 11,470,224 | 9,794,254 | $ 7,382,641 |
Acquisitions/origination/additional funding | 5,337,399 | 9,094,714 | 6,723,144 |
Acquisition of Infrastructure Lending Portfolio | 1,969,340 | ||
Capitalized Interest | 144,013 | 110,632 | 63,047 |
Basis of loans sold | (3,307,003) | (4,311,390) | (3,082,347) |
Loan maturities/principal repayments | (1,821,196) | (3,304,838) | (3,272,666) |
Discount accretion/premium amortization | 42,199 | 35,387 | 38,099 |
Changes in fair value | 133,124 | 71,601 | 40,522 |
Unrealized foreign currency translation (loss) gain | 102,553 | 40,155 | (32,341) |
Credit loss provision, net | (46,091) | (7,126) | (34,821) |
Loan foreclosure | (27,303) | ||
Transfer to/from other asset classifications | 105,126 | (25,862) | (364) |
Balance at the end of the period | 12,139,908 | 11,470,224 | 9,794,254 |
ASU 2016-13 | |||
Activity in loan portfolio | |||
Loan maturities/principal repayments | (20,440) | ||
Total loans held-for-investment | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 33,415 | ||
Credit loss allowance at the end of the period | 77,444 | 33,415 | |
Loans held-for-sale | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 884,150 | 1,187,552 | 745,743 |
Acquisitions/origination/additional funding | 2,204,203 | 3,636,380 | 2,291,477 |
Acquisition of Infrastructure Lending Portfolio | 510,505 | ||
Basis of loans sold | (2,862,606) | (3,567,859) | (2,246,989) |
Loan maturities/principal repayments | (142,644) | (162,376) | (194,140) |
Discount accretion/premium amortization | 110 | 2,841 | |
Changes in fair value | 148,506 | 72,915 | 40,522 |
Unrealized foreign currency translation (loss) gain | (1,291) | 2,105 | (5,696) |
Credit loss provision, net | 125 | (1,196) | |
Transfer to/from other asset classifications | 822,282 | (286,212) | 46,130 |
Balance at the end of the period | 1,052,835 | 884,150 | 1,187,552 |
Loans held-for-sale | RMBS | |||
Activity in loan portfolio | |||
Transfer to/from other asset classifications | 176,600 | ||
Loans transferred as secured borrowings | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 74,346 | 74,403 | |
Loan maturities/principal repayments | (74,692) | (308) | |
Discount accretion/premium amortization | 346 | 251 | |
Balance at the end of the period | 74,346 | ||
Funded commitments | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 33,611 | ||
Credit loss provision (reversal), net | 46,091 | ||
Charge-offs | (22,698) | ||
Credit loss allowance at the end of the period | 77,444 | 33,611 | |
Funded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 20,440 | ||
Unfunded commitments | |||
Activity in allowance for loan losses | |||
Credit loss provision (reversal), net | (4,483) | ||
Credit loss allowance at the end of the period | 6,070 | ||
Unfunded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 10,553 | ||
Unfunded commitments | 1,421,532 | ||
Commercial Portfolio Segment | Total loans held-for-investment | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 33,415 | ||
Credit loss allowance at the end of the period | 69,611 | 33,415 | |
Activity in loan portfolio | |||
Balance at the beginning of the period | 8,517,054 | 7,075,577 | 6,561,296 |
Acquisitions/origination/additional funding | 2,753,782 | 4,161,584 | 4,300,406 |
Capitalized Interest | 143,818 | 110,632 | 63,047 |
Basis of loans sold | (443,793) | (743,425) | (835,358) |
Loan maturities/principal repayments | (1,398,991) | (2,172,068) | (2,943,602) |
Discount accretion/premium amortization | 39,642 | 30,128 | 37,748 |
Unrealized foreign currency translation (loss) gain | 102,748 | 38,050 | (26,645) |
Credit loss provision, net | (48,711) | (2,616) | (34,821) |
Loan foreclosure | (27,303) | ||
Transfer to/from other asset classifications | (71,488) | 46,495 | (46,494) |
Balance at the end of the period | 9,583,949 | 8,517,054 | 7,075,577 |
Commercial Portfolio Segment | Total loans held-for-investment | ASU 2016-13 | |||
Activity in loan portfolio | |||
Loan maturities/principal repayments | (10,112) | ||
Commercial Portfolio Segment | Funded commitments | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 33,415 | ||
Credit loss provision (reversal), net | 48,711 | ||
Charge-offs | (22,627) | ||
Credit loss allowance at the end of the period | 69,611 | 33,415 | |
Commercial Portfolio Segment | Funded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 10,112 | ||
Commercial Portfolio Segment | Unfunded commitments | |||
Activity in allowance for loan losses | |||
Credit loss provision (reversal), net | (3,090) | ||
Credit loss allowance at the end of the period | 5,258 | ||
Commercial Portfolio Segment | Unfunded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 8,348 | ||
Unfunded commitments | 1,341,939 | ||
Infrastructure Portfolio Segment | Total loans held-for-investment | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the end of the period | 7,833 | ||
Activity in loan portfolio | |||
Balance at the beginning of the period | 1,397,448 | 1,456,779 | |
Acquisitions/origination/additional funding | 278,694 | 902,053 | 131,115 |
Acquisition of Infrastructure Lending Portfolio | 1,458,835 | ||
Capitalized Interest | 195 | ||
Loan maturities/principal repayments | (189,288) | (832,998) | (133,271) |
Discount accretion/premium amortization | 2,447 | 2,072 | 100 |
Unrealized foreign currency translation (loss) gain | 1,096 | ||
Credit loss provision, net | 2,495 | (3,314) | |
Transfer to/from other asset classifications | (70,319) | (127,144) | |
Balance at the end of the period | 1,412,440 | 1,397,448 | 1,456,779 |
Infrastructure Portfolio Segment | Total loans held-for-investment | ASU 2016-13 | |||
Activity in loan portfolio | |||
Loan maturities/principal repayments | (10,328) | ||
Infrastructure Portfolio Segment | Loans held-for-sale | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 196 | ||
Credit loss allowance at the end of the period | 196 | ||
Infrastructure Portfolio Segment | Funded commitments | |||
Activity in allowance for loan losses | |||
Credit loss provision (reversal), net | (2,495) | ||
Credit loss allowance at the end of the period | 7,833 | ||
Infrastructure Portfolio Segment | Funded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 10,328 | ||
Infrastructure Portfolio Segment | Unfunded commitments | |||
Activity in allowance for loan losses | |||
Credit loss provision (reversal), net | (1,393) | ||
Credit loss allowance at the end of the period | 812 | ||
Infrastructure Portfolio Segment | Unfunded commitments | ASU 2016-13 | |||
Activity in allowance for loan losses | |||
Provision for impaired loans | 2,205 | ||
Unfunded commitments | 79,593 | ||
Loans Held For Sale Infrastructure | Funded commitments | |||
Activity in allowance for loan losses | |||
Credit loss allowance at the beginning of the period | 196 | ||
Credit loss provision (reversal), net | (125) | ||
Charge-offs | (71) | ||
Credit loss allowance at the end of the period | 196 | ||
Residential Portfolio Segment | Total loans held-for-investment | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 671,572 | 1,199 | |
Acquisitions/origination/additional funding | 100,720 | 394,697 | 146 |
Basis of loans sold | (604) | (106) | |
Loan maturities/principal repayments | (90,273) | (62,704) | $ (1,345) |
Changes in fair value | (15,382) | (1,314) | |
Transfer to/from other asset classifications | (575,349) | 340,999 | |
Balance at the end of the period | $ 90,684 | $ 671,572 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | |||
Investment securities | $ 736,658 | $ 810,238 | |
Credit Loss Allowance | 5,675 | ||
Purchases | 22,408 | 98,258 | $ 492,400 |
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||
Sales | 7,940 | 7,326 | 16,427 |
Principal collections | 83,533 | 205,660 | 382,924 |
VIE eliminations | |||
Investment Securities | |||
Purchases | (331,784) | (351,220) | (385,463) |
Sales | (165,494) | (184,540) | (102,474) |
Principal collections | (69,447) | (45,642) | (95,030) |
Redemptions | (10,474) | ||
Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 2,162,228 | 2,215,275 | |
Fair value option | VIE eliminations | |||
Investment Securities | |||
Investment securities | (1,425,570) | (1,405,037) | |
Held-to-maturity | |||
Investment Securities | |||
Credit Loss Allowance | 5,675 | 0 | |
Purchases | 22,408 | 91,162 | 463,810 |
Acquisition of Infrastructure Lending Portfolio | 65,060 | ||
Principal collections | 52,704 | 167,383 | 327,207 |
Held-to-maturity | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 538,605 | 570,638 | |
RMBS | Available-for-sale | |||
Investment Securities | |||
Sales | 13,264 | ||
Principal collections | 26,000 | 26,929 | 34,763 |
Purchase Amortized Cost | 123,292 | 138,580 | |
Recorded Amortized Cost | 123,292 | 138,580 | |
Gross Unrealized Gains | 44,123 | 51,310 | |
Gross Unrealized Losses | (66) | (314) | |
Net Fair Value Adjustment | 44,057 | 50,996 | |
Fair Value | 167,349 | 189,576 | |
Portion of securities with variable rate | $ 144,900 | ||
Portion of securities with variable rate (as a percent) | 86.60% | ||
Cost of third party management | $ 800 | 1,500 | 1,800 |
Proceeds from sale of securities | $ 0 | 0 | 13,300 |
Realized gain on sale of securities | 3,500 | ||
RMBS | Available-for-sale | One-month LIBOR | |||
Investment Securities | |||
Effective variable rate basis (as a percent) | 0.144% | ||
RMBS | Available-for-sale | B+ | |||
Investment Securities | |||
Weighted Average Coupon (as a percent) | 1.30% | ||
WAL (Years) | 5 years 8 months 12 days | ||
RMBS | Available-for-sale | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | $ 167,349 | 189,576 | |
RMBS | Fair value option | |||
Investment Securities | |||
Purchases | 282,368 | 120,103 | 90,982 |
Sales | 135,567 | 41,501 | |
Principal collections | 44,197 | 16,500 | 1,439 |
Redemptions | 10,500 | 10,474 | |
Portion of securities with variable rate | 0 | ||
RMBS | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 235,997 | 147,034 | |
CMBS | |||
Investment Securities | |||
Amount not rated | 179,500 | 186,600 | |
CMBS | Fair value option | |||
Investment Securities | |||
Purchases | 49,416 | 238,213 | 323,071 |
Sales | 37,867 | 150,365 | 105,637 |
Principal collections | 30,079 | 40,490 | $ 114,545 |
Portion of securities with variable rate | 96,900 | ||
CMBS | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 1,209,030 | 1,295,363 | |
Equity security | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 11,247 | $ 12,664 | |
Infrastructure bonds | |||
Investment Securities | |||
Credit Loss Allowance | $ 2,926 |
Investment Securities - AFS and
Investment Securities - AFS and Fair Value Option (Details) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)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 | 438 | |
Securities with a loss greater than 12 months | 1,195 | $ 1,380 |
Unrealized Losses | ||
Securities with a loss less than 12 months | (25) | |
Securities with a loss greater than 12 months | $ (41) | $ (314) |
Number of securities with unrealized loss position | security | 2 | 1 |
Portion of securities with variable rate | $ 144,900 | |
RMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 236,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 142,100 | |
Portion of securities with variable rate | 0 | |
CMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 1,200,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 2,800,000 | |
Portion of securities with variable rate | 96,900 | |
VIE eliminations | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs eliminated against VIE liabilities | $ 19,500 |
Investment Securities - HTM (De
Investment Securities - HTM (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
HTM Securities | ||||
Amortized Cost Basis | $ 544,280 | $ 570,638 | ||
Credit Loss Allowance | $ (5,675) | (5,675) | ||
Net Carrying Amount | 538,605 | 570,638 | ||
Gross Unrealized Holdings Gains | 847 | 2,094 | ||
Gross Unrealized Holdings Losses | (24,199) | (4,005) | ||
Fair Value | 515,253 | 568,727 | ||
Activity in credit loss allowance for HTM debt securities | ||||
Credit loss provision, net | 1,545 | |||
Credit loss allowance at ending | 5,675 | |||
HTM preferred equity interests | ||||
Less than one year | 339,059 | |||
One to three years | 163,865 | |||
Thereafter | 35,681 | |||
Total | 538,605 | 570,638 | ||
CMBS | ||||
HTM Securities | ||||
Amortized Cost Basis | 339,059 | 383,473 | ||
Net Carrying Amount | 339,059 | 383,473 | ||
Gross Unrealized Holdings Gains | 946 | |||
Gross Unrealized Holdings Losses | (23,286) | (3,001) | ||
Fair Value | 315,773 | 381,418 | ||
HTM preferred equity interests | ||||
Less than one year | 339,059 | |||
Total | 339,059 | 383,473 | ||
Preferred interests | ||||
HTM Securities | ||||
Amortized Cost Basis | 166,614 | 142,012 | ||
Credit Loss Allowance | (2,749) | (2,749) | ||
Net Carrying Amount | 163,865 | 142,012 | ||
Gross Unrealized Holdings Gains | 432 | 1,148 | ||
Gross Unrealized Holdings Losses | (913) | (353) | ||
Fair Value | 163,384 | 142,807 | ||
Activity in credit loss allowance for HTM debt securities | ||||
Credit loss provision, net | 1,635 | |||
Credit loss allowance at ending | 2,749 | |||
HTM preferred equity interests | ||||
One to three years | 163,865 | |||
Total | 163,865 | 142,012 | ||
Infrastructure bonds | ||||
HTM Securities | ||||
Amortized Cost Basis | 38,607 | 45,153 | ||
Credit Loss Allowance | (2,926) | (2,926) | ||
Net Carrying Amount | 35,681 | 45,153 | ||
Gross Unrealized Holdings Gains | 415 | |||
Gross Unrealized Holdings Losses | (651) | |||
Fair Value | 36,096 | 44,502 | ||
Activity in credit loss allowance for HTM debt securities | ||||
Credit loss provision, net | (90) | |||
Credit loss allowance at ending | $ 2,926 | |||
HTM preferred equity interests | ||||
Thereafter | 35,681 | |||
Total | $ 35,681 | $ 45,153 | ||
ASU 2016-13 | ||||
Activity in credit loss allowance for HTM debt securities | ||||
Accumulated deficit charge | $ 1,293 | |||
Gross-up of PCD bond amortized cost basis | 2,837 | |||
ASU 2016-13 | Preferred interests | ||||
Activity in credit loss allowance for HTM debt securities | ||||
Accumulated deficit charge | 1,114 | |||
ASU 2016-13 | Infrastructure bonds | ||||
Activity in credit loss allowance for HTM debt securities | ||||
Accumulated deficit charge | 179 | |||
Gross-up of PCD bond amortized cost basis | $ 2,837 |
Investment Securities - SEREF (
Investment Securities - SEREF (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2012 | Dec. 31, 2019 | |
Residential Real Estate | |||
Fair value of the investment | $ 45,336 | $ 26,746 | |
Ownership percentage | 2.00% | ||
SEREF | |||
Residential Real Estate | |||
Number of shares acquired | 9,140,000 | ||
Fair value of the investment | $ 11,200 | $ 12,700 |
Properties (Details)
Properties (Details) $ in Thousands, ft² in Millions | 1 Months Ended | 12 Months Ended | 13 Months Ended | 24 Months Ended | ||||||
Dec. 31, 2017itemproperty | Sep. 30, 2017ft²property | Dec. 31, 2020USD ($)propertyitem | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)propertyitem | Dec. 31, 2016ft²item | Dec. 31, 2015item | Dec. 31, 2018property | Dec. 31, 2018property | Dec. 31, 2016ft²property | |
Properties | ||||||||||
Number of properties sold | property | 16 | |||||||||
Proceeds from sale of operating properties | $ 313,300 | |||||||||
Gain on sale of property | $ 7,900 | $ 59,700 | 55,100 | |||||||
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 | 2,573,296 | $ 2,490,630 | ||||||||
Less: accumulated depreciation | (302,143) | (224,190) | ||||||||
Properties, net | 2,271,153 | 2,266,440 | ||||||||
Future rental payments due from tenants under existing non-cancellable operating leases | ||||||||||
2021 | 187,924 | |||||||||
2022 | 103,617 | |||||||||
2023 | 93,914 | |||||||||
2024 | 85,964 | |||||||||
2025 | 78,050 | |||||||||
Thereafter | 677,142 | |||||||||
Total | 1,226,611 | |||||||||
Non-Controlling Interests | ||||||||||
Properties | ||||||||||
Gain on sale of property | 100 | 5,300 | $ 5,100 | |||||||
Property Segment | ||||||||||
Summary of properties | ||||||||||
Land and land improvements | 484,846 | 484,397 | ||||||||
Buildings and building improvements | 1,690,701 | 1,687,756 | ||||||||
Furniture & fixtures | $ 59,632 | $ 52,567 | ||||||||
Property Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and 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 and land improvements, useful life | 15 years | |||||||||
Building and building improvements, useful life | 45 years | |||||||||
Furniture & fixtures, useful life | 7 years | |||||||||
Investing and Servicing Segment | ||||||||||
Properties | ||||||||||
Number of properties in portfolio investment | property | 15 | |||||||||
Total gross properties and lease intangibles | $ 269,500 | |||||||||
Debt | $ 192,800 | |||||||||
Number of retail properties acquired | property | 0 | |||||||||
Number of equity interests in unconsolidated commercial real estate properties | property | 1 | |||||||||
Number of industrial properties acquired | property | 3 | |||||||||
Number of properties sold | property | 1 | 4 | 9 | |||||||
Gain on sale of property | $ 7,400 | $ 59,700 | $ 26,600 | |||||||
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 | 50,585 | 54,052 | ||||||||
Buildings and building improvements | 179,014 | 182,048 | ||||||||
Furniture & fixtures | $ 2,606 | $ 2,139 | ||||||||
Investing and Servicing Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and 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 and land improvements, useful life | 15 years | |||||||||
Building and building improvements, useful life | 40 years | |||||||||
Furniture & fixtures, useful life | 5 years | |||||||||
Investing and Servicing Segment | Non-Controlling Interests | ||||||||||
Properties | ||||||||||
Gain on sale of property | $ 5,300 | $ 5,100 | ||||||||
Commercial and Residential Lending Segment | ||||||||||
Summary of properties | ||||||||||
Land and land improvements | $ 11,416 | 11,386 | ||||||||
Buildings and building improvements | 19,251 | $ 16,285 | ||||||||
Construction in progress | $ 75,245 | |||||||||
Commercial and Residential Lending Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 0 years | 0 years | ||||||||
Building and building improvements, useful life | 10 years | 10 years | ||||||||
Commercial and Residential Lending Segment | Maximum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 10 years | |||||||||
Building and building improvements, useful life | 23 years | |||||||||
Ireland Portfolio | ||||||||||
Properties | ||||||||||
Number of properties sold | property | 0 | 4 | 0 | |||||||
Proceeds from sale of operating properties | $ 407,200 | |||||||||
Woodstar Portfolio | ||||||||||
Properties | ||||||||||
Number of properties in portfolio investment | property | 32 | 32 | ||||||||
Total gross properties and lease intangibles | $ 635,200 | |||||||||
Debt | $ 572,500 | |||||||||
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 | $ 610,000 | |||||||||
Debt | $ 437,000 | |||||||||
Number of units acquired | property | 1,740 | 6,109 | 4,369 | 6,109 | ||||||
Number of units in portfolio investment | property | 27 | |||||||||
Percentage of occupied portfolio | 100.00% | |||||||||
Number of acquired properties closed | item | 8 | 19 | ||||||||
Medical Office Portfolio | ||||||||||
Properties | ||||||||||
Area of property | ft² | 1.9 | 1.9 | ||||||||
Total gross properties and lease intangibles | $ 760,200 | |||||||||
Debt | 592,400 | |||||||||
Number of acquired properties closed | item | 34 | |||||||||
Master Lease Portfolio | ||||||||||
Properties | ||||||||||
Total gross properties and lease intangibles | 343,800 | |||||||||
Debt | $ 192,700 | |||||||||
Number of retail properties acquired | property | 16 | |||||||||
Number of square feet of properties | ft² | 1.9 | |||||||||
Term of master lease agreements | 24 years 7 months 6 days | |||||||||
Master Lease Portfolio | Disposed of by sale | ||||||||||
Properties | ||||||||||
Number of properties sold | property | 0 | 0 | 4 | |||||||
Gain on sale of property | $ 28,500 | |||||||||
REIS Equity Portfolio | ||||||||||
Properties | ||||||||||
Number of properties sold | property | 1 | |||||||||
Proceeds from sale of operating properties | $ 25,000 | $ 145,900 | ||||||||
Utah, Florida, Texas and Minnesota | Master Lease Portfolio | Minimum | ||||||||||
Properties | ||||||||||
Concentration risk (as a percent) | 50.00% |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2020USD ($) | Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Oct. 31, 2014USD ($) | |
Investment in Unconsolidated Entities | ||||||
Equity method, Carrying value | $ 62,718 | $ 57,583 | ||||
Number of publicly traded investments | item | 0 | |||||
Fair value of the investment | $ 45,336 | 26,746 | ||||
Investment in unconsolidated entities | 108,054 | 84,329 | ||||
Capital distribution | $ 3,422 | $ 18,127 | $ 21,461 | |||
Retail Fund | ||||||
Investment in Unconsolidated Entities | ||||||
Equity method, Participation / Ownership % | 33.00% | 33.00% | ||||
Equity method, Carrying value | $ 150,000 | |||||
Investment in unconsolidated entities | $ 15,500 | |||||
Number of regional shopping malls | item | 4 | |||||
Equity interest in a natural gas power plant | ||||||
Investment in Unconsolidated Entities | ||||||
Equity method, Participation / Ownership % | 10.00% | 10.00% | ||||
Equity method, Carrying value | $ 25,095 | $ 25,862 | ||||
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 | $ 9,397 | $ 9,473 | ||||
Equity interests in commercial real estate | ||||||
Investment in Unconsolidated Entities | ||||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | ||||
Equity method, Carrying value | $ 1,543 | $ 1,907 | ||||
Equity interest in a residential mortgage originator | ||||||
Investment in Unconsolidated Entities | ||||||
Equity method, Carrying value | 17,852 | 12,002 | ||||
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 | 4,500 | ||||
Various - Equity method | ||||||
Investment in Unconsolidated Entities | ||||||
Equity method, Carrying value | $ 8,831 | $ 8,339 | ||||
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 % | 0.02% | 2.00% | 0.04% | |||
Equity method, Carrying value | $ 17,584 | $ 0 | ||||
Capital distribution | 8,400 | |||||
Gain on sale of equity method investments | $ 10,300 | 17,600 | ||||
Cash proceeds | $ 10,300 | |||||
Equity method investment, ownership percentage sold | 0.37% | |||||
Investment funds which own equity in a loan servicer and other real estate assets | ||||||
Investment in Unconsolidated Entities | ||||||
Fair value of the investment | $ 7,267 | $ 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 | $ 20,485 | $ 17,521 | ||||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets | ||||
Goodwill | $ 259,846 | $ 259,846 | ||
Summary of Intangible Assets | ||||
Gross Carrying Value | 170,586 | 176,428 | ||
Accumulated Amortization | (100,469) | (90,728) | ||
Net Carrying Value | 70,117 | 85,700 | $ 145,033 | |
In-place lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 133,203 | 135,293 | ||
Accumulated Amortization | (92,540) | (84,383) | ||
Net Carrying Value | 40,663 | 50,910 | 97,347 | |
Favorable lease | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 24,181 | 24,218 | ||
Accumulated Amortization | (7,929) | (6,345) | ||
Net Carrying Value | 16,252 | 17,873 | 27,129 | |
Domestic Servicing Rights | ||||
Summary of Intangible Assets | ||||
Gross Carrying Value | 13,202 | 16,917 | ||
Net Carrying Value | 13,202 | 16,917 | $ 20,557 | |
Domestic Servicing Rights | Before consolidation of securitization VIEs | ||||
Intangible Assets | ||||
Servicing rights intangibles | 54,600 | 43,200 | ||
Domestic Servicing Rights | VIE eliminations | ||||
Intangible Assets | ||||
Servicing rights intangibles | 41,400 | 26,200 | ||
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, 2020 | Dec. 31, 2019 | |
Summary of activity within intangible assets | ||
Balance as of beginning of period | $ 85,700 | $ 145,033 |
Amortization | (11,698) | (22,553) |
Sales | (170) | |
Foreign exchange loss | (1,027) | |
Impairment | (1,244) | |
Changes in fair value due to changes in inputs and assumptions | (3,715) | (3,640) |
Balance as of end of period | 70,117 | 85,700 |
Unfavorable lease liability | 1,900 | 2,300 |
Future rental payments due to us from tenants under existing non-cancellable operating leases | ||
2021 | 9,643 | |
2022 | 7,862 | |
2023 | 6,115 | |
2024 | 4,722 | |
2025 | 3,846 | |
Thereafter | 24,727 | |
Total | 56,915 | |
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 | |
REIS Equity Portfolio | ||
Summary of activity within intangible assets | ||
Acquisition of properties | 277 | |
Sales | (5,221) | |
Ireland Portfolio | ||
Summary of activity within intangible assets | ||
Sales | (25,925) | |
In-place lease | ||
Summary of activity within intangible assets | ||
Balance as of beginning of period | $ 50,910 | 97,347 |
Amortization | (10,077) | (19,297) |
Sales | (170) | |
Foreign exchange loss | (806) | |
Impairment | (1,132) | |
Balance as of end of period | 40,663 | 50,910 |
In-place lease | REIS Equity Portfolio | ||
Summary of activity within intangible assets | ||
Acquisition of properties | 277 | |
Sales | (5,208) | |
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 | 17,873 | 27,129 |
Amortization | (1,621) | (3,256) |
Foreign exchange loss | (221) | |
Impairment | (112) | |
Balance as of end of period | 16,252 | 17,873 |
Favorable lease | REIS Equity Portfolio | ||
Summary of activity within intangible assets | ||
Sales | (13) | |
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 | 16,917 | 20,557 |
Changes in fair value due to changes in inputs and assumptions | (3,715) | (3,640) |
Balance as of end of period | $ 13,202 | $ 16,917 |
Secured Borrowings (Details)
Secured Borrowings (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)Option | Feb. 29, 2020USD ($) | Jan. 31, 2020 | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)facility | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 31, 2019USD ($) | Jan. 29, 2018USD ($) | |
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.00% | ||||||||||
Principal Amount | $ 1,750,000 | $ 1,950,000 | |||||||||
Carrying Value | 10,146,190 | 8,906,048 | |||||||||
Loss on extinguishment of debt | (3,654) | (19,270) | $ (5,808) | ||||||||
Long-term Debt | 1,732,520 | 1,928,622 | |||||||||
Payment of debt | 6,137,778 | 8,671,085 | $ 6,360,610 | ||||||||
Revolving credit facility | |||||||||||
Secured Borrowings | |||||||||||
Equity interests in certain subsidiaries used to secure facilities | 4,000,000 | ||||||||||
Maximum borrowing capacity | $ 120,000 | ||||||||||
Revolving credit facility | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.00% | ||||||||||
Maturity Extended Credit Facility | |||||||||||
Secured Borrowings | |||||||||||
Number of facility maturities extended | facility | 10 | ||||||||||
Maximum borrowing capacity | $ 6,000,000 | ||||||||||
Maturity Extended Credit Facility | Minimum | |||||||||||
Secured Borrowings | |||||||||||
Extension term | 1 year | ||||||||||
Maturity Extended Credit Facility | Maximum | |||||||||||
Secured Borrowings | |||||||||||
Extension term | 2 years | ||||||||||
Commercial Lending Facility | |||||||||||
Secured Borrowings | |||||||||||
Maximum borrowing capacity | $ 4,900,000 | ||||||||||
Infrastructure Lending Facility | |||||||||||
Secured Borrowings | |||||||||||
Maximum borrowing capacity | 500,000 | ||||||||||
Woodstar I Portfolio | |||||||||||
Secured Borrowings | |||||||||||
Loss on extinguishment of debt | $ 2,200 | ||||||||||
Maximum borrowing capacity | $ 217,100 | ||||||||||
Maturity period | 10 years | ||||||||||
Payment of debt | $ 117,000 | ||||||||||
Woodstar I Portfolio | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.71% | ||||||||||
Revolving Credit Agreement | |||||||||||
Secured Borrowings | |||||||||||
Maximum Facility Size | 300,000 | ||||||||||
Maximum facility size subject to certain conditions | $ 650,000 | ||||||||||
Residential Financing Facility | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.50% | ||||||||||
Maximum borrowing capacity | $ 250,000 | ||||||||||
Maturity period | 2 years | ||||||||||
Extension term | 3 years | ||||||||||
Residential Financing Facility | One-month LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.75% | ||||||||||
Property Mortgages - Fixed rate | |||||||||||
Secured Borrowings | |||||||||||
Maturity period | 6 years 9 months 18 days | ||||||||||
Collateralized Loan Obligation | |||||||||||
Secured Borrowings | |||||||||||
Principal Amount | $ 86,600 | ||||||||||
Principal amount of notes | 1,100,000 | ||||||||||
Liquidation preference | $ 77,000 | ||||||||||
Term loan facility | |||||||||||
Secured Borrowings | |||||||||||
Maximum borrowing capacity | $ 645,000 | ||||||||||
Floor interest rate (as a percent) | 0.75% | ||||||||||
Term loan facility | LIBOR + 2.50% | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.50% | ||||||||||
Maximum borrowing capacity | $ 395,000 | ||||||||||
Term loan facility | LIBOR + 3.50% | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 3.50% | ||||||||||
Maximum borrowing capacity | $ 250,000 | ||||||||||
2021 Senior Notes 3.63% | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.625% | ||||||||||
Principal Amount | 500,000 | ||||||||||
Principal amount of notes | $ 500,000 | ||||||||||
Commercial Loans | |||||||||||
Secured Borrowings | |||||||||||
Maximum Facility Size | 8,800,000 | ||||||||||
Carrying Value | $ 1,500,000 | ||||||||||
Commercial Loans | LIBOR | Weighted-average | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.03% | ||||||||||
CMBS/RMBS | |||||||||||
Secured Borrowings | |||||||||||
Carrying Value | $ 212,200 | ||||||||||
Amount outstanding on a repurchase facility not subject to margin calls | 212,200 | ||||||||||
Amount outstanding on repurchase facility | $ 41,300 | ||||||||||
Pro rata share owned by a non-controlling partner in a consolidated joint venture | 49.00% | ||||||||||
CMBS/RMBS | Weighted-average | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.29% | ||||||||||
CMBS/RMBS | LIBOR | Weighted-average | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 1.80% | ||||||||||
CMBS/RMBS | Certain Facilities | |||||||||||
Secured Borrowings | |||||||||||
Maximum Facility Size | $ 271,000 | ||||||||||
Rolling maturity period | 11 months | ||||||||||
Maturity period | 12 months | ||||||||||
Primary beneficiary | |||||||||||
Secured Borrowings | |||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | |||||||||
Secured Borrowings | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 13,173,141 | ||||||||||
Maximum Facility Size | 17,186,052 | ||||||||||
Principal Amount | 10,233,589 | 9,000,125 | |||||||||
Unamortized net discount | (13,569) | (8,347) | |||||||||
Unamortized deferred financing costs | (73,830) | (85,730) | |||||||||
Carrying Value | 10,146,190 | 8,906,048 | |||||||||
Secured Borrowings | Other Secured Financing | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 4,511,050 | ||||||||||
Maximum Facility Size | 6,031,680 | ||||||||||
Principal Amount | 4,424,782 | 4,390,668 | |||||||||
Secured Borrowings | Revolving Credit Agreement | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 56,127 | ||||||||||
Maximum Facility Size | 650,000 | ||||||||||
Principal Amount | $ 43,014 | 198,955 | |||||||||
Secured Borrowings | Revolving Credit Agreement | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.25% | ||||||||||
Secured Borrowings | Commercial Financing Facility | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 100,714 | ||||||||||
Maximum Facility Size | 81,218 | ||||||||||
Principal Amount | $ 81,218 | ||||||||||
Maximum borrowing capacity | $ 2,000,000 | ||||||||||
Maturity period | 2 years | ||||||||||
Number of extension options | Option | 3 | ||||||||||
Extension term | 1 year | ||||||||||
Additional extension term | 4 years | ||||||||||
Secured Borrowings | Commercial Financing Facility | GBP LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 1.75% | 1.75% | |||||||||
Secured Borrowings | Residential Financing Facility | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.50% | ||||||||||
Pledged Asset Carrying Value | $ 298,008 | ||||||||||
Maximum Facility Size | 250,000 | ||||||||||
Principal Amount | 215,024 | ||||||||||
Secured Borrowings | Infrastructure Acquisition Facility | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 575,193 | ||||||||||
Maximum Facility Size | 571,690 | ||||||||||
Principal Amount | 467,450 | 603,642 | |||||||||
Secured Borrowings | Infrastructure Financing Facilities | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 663,702 | ||||||||||
Maximum Facility Size | 1,250,000 | ||||||||||
Principal Amount | $ 538,645 | 428,206 | |||||||||
Maximum borrowing capacity | $ 750,000 | ||||||||||
Increase in available borrowings | 250,000 | ||||||||||
Secured Borrowings | Infrastructure Financing Facilities | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.06% | ||||||||||
Secured Borrowings | Property Mortgages - Fixed rate | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 1,280,300 | ||||||||||
Maximum Facility Size | 1,077,572 | ||||||||||
Principal Amount | $ 1,077,528 | 1,196,492 | |||||||||
Secured Borrowings | Property Mortgages - Fixed rate | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 4.00% | ||||||||||
Secured Borrowings | Property Mortgages - Variable rate | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 938,979 | ||||||||||
Maximum Facility Size | 986,200 | ||||||||||
Principal Amount | $ 960,903 | 696,503 | |||||||||
Secured Borrowings | Property Mortgages - Variable rate | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.59% | ||||||||||
Secured Borrowings | Term Loan and Revolver | |||||||||||
Secured Borrowings | |||||||||||
Maximum Facility Size | $ 765,000 | ||||||||||
Principal Amount | $ 645,000 | 399,000 | |||||||||
Secured Borrowings | FHLB | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 2.06% | ||||||||||
Pledged Asset Carrying Value | $ 598,027 | ||||||||||
Maximum Facility Size | 400,000 | ||||||||||
Principal Amount | $ 396,000 | 867,870 | |||||||||
Secured Borrowings | Term loan facility | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 3.50% | ||||||||||
Maximum borrowing capacity | $ 250,000 | ||||||||||
Maturity period | 6 years | ||||||||||
Floor interest rate (as a percent) | 0.75% | ||||||||||
Secured Borrowings | First Mortgage And Mezzanine | |||||||||||
Secured Borrowings | |||||||||||
Interest rate (as a percent) | 3.34% | ||||||||||
Principal Amount | $ 600,000 | ||||||||||
Secured Borrowings | First Mortgage And Mezzanine | LIBOR | Weighted-average | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.07% | ||||||||||
Secured Borrowings | Wells Orlando Property Mortgage | |||||||||||
Secured Borrowings | |||||||||||
Principal Amount | $ 50,000 | ||||||||||
Maturity period | 3 years | ||||||||||
Secured Borrowings | Wells Orlando Property Mortgage | One-month LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.40% | ||||||||||
Secured Borrowings | Repurchase Agreements | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 8,662,091 | ||||||||||
Maximum Facility Size | 11,154,372 | ||||||||||
Principal Amount | 5,808,807 | 4,609,457 | |||||||||
Secured Borrowings | Commercial Loans | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 7,154,627 | ||||||||||
Maximum Facility Size | 8,783,716 | ||||||||||
Principal Amount | 4,878,939 | 3,640,620 | |||||||||
Maximum borrowing capacity | $ 1,800,000 | ||||||||||
Increase in available borrowings | $ 200,000 | ||||||||||
Secured Borrowings | Residential Loans | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | 36,465 | ||||||||||
Maximum Facility Size | $ 350,000 | 750,000 | |||||||||
Principal Amount | $ 22,590 | 11,835 | |||||||||
Maturity period | 3 years | ||||||||||
Extension term | 18 months | ||||||||||
Secured Borrowings | Residential Loans | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.64% | ||||||||||
Secured Borrowings | Residential Loans | One-month LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.30% | ||||||||||
Secured Borrowings | Residential Loans | Revolving credit facility | |||||||||||
Secured Borrowings | |||||||||||
Maturity period | 18 months | ||||||||||
Secured Borrowings | Infrastructure Loans | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 278,174 | ||||||||||
Maximum Facility Size | 500,000 | ||||||||||
Principal Amount | $ 232,961 | 188,198 | |||||||||
Secured Borrowings | Infrastructure Loans | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.00% | ||||||||||
Secured Borrowings | Conduit Loans | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 76,613 | ||||||||||
Maximum Facility Size | 350,000 | ||||||||||
Principal Amount | $ 53,554 | 86,575 | |||||||||
Secured Borrowings | Conduit Loans | LIBOR | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 2.10% | ||||||||||
Secured Borrowings | CMBS/RMBS | |||||||||||
Secured Borrowings | |||||||||||
Pledged Asset Carrying Value | $ 1,116,212 | ||||||||||
Maximum Facility Size | 770,656 | ||||||||||
Principal Amount | $ 620,763 | $ 682,229 | |||||||||
Maturity period | 12 months | ||||||||||
Secured Borrowings | CMBS/RMBS | Three Month LIBOR | Minimum | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 1.35% | ||||||||||
Secured Borrowings | CMBS/RMBS | Three Month LIBOR | Maximum | |||||||||||
Secured Borrowings | |||||||||||
Pricing margin (as a percent) | 1.85% | ||||||||||
Repurchase Agreements | Commercial Financing Facility | |||||||||||
Secured Borrowings | |||||||||||
Maximum borrowing capacity | $ 500,000 |
Secured Borrowings - Principal
Secured Borrowings - Principal Repayments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
CLO | |
Repayment of secured financings | |
Thereafter | $ 936,375 |
Total | 936,375 |
Secured Borrowings | |
Repayment of secured financings | |
2021 | 1,133,201 |
2022 | 1,679,337 |
2023 | 2,307,831 |
2024 | 1,205,356 |
2025 | 1,730,033 |
Thereafter | 3,114,206 |
Total | 11,169,964 |
Repurchase Agreements | |
Repayment of secured financings | |
2021 | 656,717 |
2022 | 1,213,850 |
2023 | 1,536,451 |
2024 | 905,731 |
2025 | 1,268,066 |
Thereafter | 227,992 |
Total | 5,808,807 |
Other Secured Financing | |
Repayment of secured financings | |
2021 | 476,484 |
2022 | 465,487 |
2023 | 771,380 |
2024 | 299,625 |
2025 | 461,967 |
Thereafter | 1,949,839 |
Total | $ 4,424,782 |
Secured Borrowings - Repurchase
Secured Borrowings - Repurchase Agreements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Secured Borrowings | |||
Secured Borrowings | |||
Amortization of deferred financing costs | $ 36.4 | $ 34.3 | $ 27 |
Repurchase Agreements | |||
Secured Borrowings | |||
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks | 72.00% | ||
Percentage of repurchase agreements containing margin call provisions for general capital market activity | 28.00% | ||
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale | 15.00% |
Secured Borrowings- Collaterali
Secured Borrowings- Collateralized Loan Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | |
Summary of CLO | |||
Principal Amount | $ 1,750,000 | $ 1,950,000 | |
Carrying value | $ 930,554 | 928,060 | |
Spread (as a percent) | 2.00% | ||
Deferred financing costs, net of amortization | $ 5,589 | $ 5,624 | |
Collateral assets | |||
Summary of CLO | |||
Count | 23 | 20 | |
Amount issued | $ 1,002,445 | $ 1,073,504 | |
Carrying value | $ 1,099,439 | $ 1,073,504 | |
Financing | |||
Summary of CLO | |||
Count | 1 | 1 | |
Amount issued | $ 936,375 | $ 936,375 | |
Carrying value | 930,554 | 928,060 | |
Collateralized Loan Obligation | |||
Summary of CLO | |||
Amount issued | $ 1,100,000 | ||
Principal Amount | 86,600 | ||
Carrying value | 936,400 | ||
Liquidation preference | $ 77,000 | ||
Amortization of deferred financing costs | 2,500 | 900 | |
Deferred financing costs, net of amortization | 9,200 | ||
Unamortized issuance costs | 5,800 | 8,300 | |
Additional Contribution to CLO | $ 134,700 | $ 88,100 | |
Collateralized Loan Obligation | Collateral assets | |||
Summary of CLO | |||
Fixed weighted average interest | 7.07% | 6.84% | |
Collateralized Loan Obligation | LIBOR | Collateral assets | |||
Summary of CLO | |||
Spread (as a percent) | 3.93% | 3.34% | |
Collateralized Loan Obligation | LIBOR | Financing | |||
Summary of CLO | |||
Spread (as a percent) | 1.64% | 1.65% |
Unsecured Senior Notes (Details
Unsecured Senior Notes (Details) $ / shares in Units, shares in Thousands | Nov. 02, 2020USD ($) | Jan. 29, 2018USD ($) | Dec. 04, 2017USD ($) | Dec. 16, 2016USD ($) | Dec. 31, 2020USD ($)item$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Mar. 29, 2017USD ($) | Jul. 03, 2013USD ($) |
Unsecured Senior Notes | |||||||||
Pricing margin (as a percent) | 2.00% | ||||||||
Principal Amount | $ 1,750,000,000 | $ 1,950,000,000 | |||||||
Unamortized deferred financing costs | (5,589,000) | (5,624,000) | |||||||
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 | 1,732,520,000 | 1,928,622,000 | |||||||
Interest expense | 419,763,000 | 508,729,000 | $ 408,188,000 | ||||||
Loss on extinguishment of debt | (3,654,000) | $ (19,270,000) | $ (5,808,000) | ||||||
Principal amount of notes, basis for conversion | $ 1,000 | ||||||||
Closing share price (in dollars per share) | $ / shares | $ 19.30 | $ 24.86 | $ 19.71 | ||||||
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 | ||||||||
2019 Notes | |||||||||
Unsecured Senior Notes | |||||||||
Coupon Rate (as a percent) | 4.00% | ||||||||
Principal Amount | $ 78,000,000 | ||||||||
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 | $ 12,000,000 | $ 25,500,000 | |||||||
Loss on extinguishment of debt | 2,100,000 | ||||||||
Settlement consideration attributable to the liability component | 264,400,000 | ||||||||
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 | ||||||||
2021 Senior Notes 3.63% | |||||||||
Unsecured Senior Notes | |||||||||
Coupon Rate (as a percent) | 3.625% | ||||||||
Principal Amount | 500,000,000 | ||||||||
Amount issued | $ 500,000,000 | ||||||||
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 | 1 year | ||||||||
Principal Amount | $ 700,000,000 | 700,000,000 | |||||||
Amount issued | $ 700,000,000 | ||||||||
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% | ||||||||
Senior notes 5.50 | |||||||||
Unsecured Senior Notes | |||||||||
Coupon Rate (as a percent) | 5.50% | 5.50% | |||||||
Effective Rate (as a percent) | 5.71% | ||||||||
Remaining Period of Amortization | 2 years 9 months 18 days | ||||||||
Principal Amount | $ 300,000,000 | ||||||||
Amount issued | $ 300,000,000 | ||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||
Senior notes 5.50 | Maximum | |||||||||
Unsecured Senior Notes | |||||||||
Percentage of principal amount that may be redeemed | 105.50% | ||||||||
Senior notes 5.50 | Debt instrument redemption period one | |||||||||
Unsecured Senior Notes | |||||||||
Percentage of principal amount that may be redeemed | 100.00% | ||||||||
Senior notes 5.50 | Debt instrument redemption period two | |||||||||
Unsecured Senior Notes | |||||||||
Percentage of principal amount that may be redeemed | 40.00% | ||||||||
2023 Convertible Notes | |||||||||
Unsecured Senior Notes | |||||||||
Coupon Rate (as a percent) | 4.38% | 4.375% | |||||||
Effective Rate (as a percent) | 4.86% | ||||||||
Remaining Period of Amortization | 2 years 2 months 12 days | ||||||||
Principal Amount | $ 250,000,000 | 250,000,000 | |||||||
Amount issued | $ 250,000,000 | ||||||||
Conversion Rate | 38.5959 | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 25.91 | ||||||||
Closing share price (in dollars per share) | $ / shares | $ 19.30 | ||||||||
If-converted value | $ 186,200,000 | ||||||||
Amount by which if-converted value of the Notes are less than principal amount | $ 63,800,000 | ||||||||
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 | 4 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% | ||||||||
2025 Senior Notes | LIBOR | |||||||||
Unsecured Senior Notes | |||||||||
Pricing margin (as a percent) | 2.53% | ||||||||
Principal Amount | $ 470,000,000 | ||||||||
Convertible Senior Notes | |||||||||
Unsecured Senior Notes | |||||||||
Unamortized discount | (2,559,000) | (3,610,000) | |||||||
Interest expense | $ 12,200,000 | 12,300,000 | $ 28,900,000 | ||||||
Loss on extinguishment of debt | $ 2,099,000 | ||||||||
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% | ||||||||
Senior Notes | |||||||||
Unsecured Senior Notes | |||||||||
Unamortized discount | $ (9,332,000) | $ (12,144,000) |
Loan Securitization_Sale Acti_3
Loan Securitization/Sale Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RMBS | |||
Loan Transfers Accounted for as Sales | |||
Payments to acquire security | $ 176,600 | ||
Investing and Servicing Segment | Loans held-for-sale, commercial | |||
Loan Transfer Activities | |||
Face Amount | 920,282 | $ 1,781,981 | $ 1,517,599 |
Proceeds | 975,569 | 1,845,890 | 1,563,433 |
Investing and Servicing Segment | Loans held-for-sale, residential | |||
Loan Transfer Activities | |||
Face Amount | 1,770,513 | 1,256,481 | 654,017 |
Proceeds | 1,826,549 | 1,305,059 | 676,484 |
Commercial and Residential Lending Segment | |||
Loan Transfers Accounted for as Sales | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | 1,000 | 4,600 | |
Commercial and Residential Lending Segment | Loans held-for-sale, commercial | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 446,132 | 751,210 | 840,400 |
Proceeds | 442,833 | 748,045 | 835,849 |
Commercial and Residential Lending Segment | Loans held-for-sale, residential | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 550 | 26,046 | 6,848 |
Proceeds | 604 | 26,797 | 7,072 |
Infrastructure Lending Segment | |||
Loan Transfer Activities | |||
Face Amount | 61,100 | 404,100 | $ 0 |
Proceeds | 60,800 | 393,300 | |
Loan Transfers Accounted for as Sales | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | 300 | 3,100 | |
Cash consideration | 3,100 | ||
Decrease in fair value within loss on derivative financial instruments | 2,700 | ||
First Mortgage Loans | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 277,900 | ||
Proceeds | 270,800 | ||
Whole Loan Interest | |||
Loan Transfers Accounted for as Sales | |||
Face Amount | 168,200 | ||
Proceeds | 172,000 | ||
Fair value option | RMBS | |||
Loan Transfers Accounted for as Sales | |||
Redemptions | $ 10,500 | $ 10,474 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2020EUR (€)item | Dec. 31, 2020GBP (£)item | Dec. 31, 2020AUD ($)item | Dec. 31, 2020USD ($)item |
Derivatives | ||||
Number of contracts | 490 | 490 | 490 | 490 |
Foreign exchange contracts | EUR | Long | ||||
Derivatives | ||||
Number of contracts | 1 | 1 | 1 | 1 |
Aggregate notional amount | € | € 1,915 | |||
Foreign exchange contracts | EUR | Short | ||||
Derivatives | ||||
Number of contracts | 256 | 256 | 256 | 256 |
Aggregate notional amount | € | € 254,243 | |||
Foreign exchange contracts | AUD | Short | ||||
Derivatives | ||||
Number of contracts | 16 | 16 | 16 | 16 |
Aggregate notional amount | $ | $ 165,200 | |||
Foreign exchange contracts | GBP | Long | ||||
Derivatives | ||||
Number of contracts | 1 | 1 | 1 | 1 |
Aggregate notional amount | £ | £ 1,602 | |||
Foreign exchange contracts | GBP | Short | ||||
Derivatives | ||||
Number of contracts | 149 | 149 | 149 | 149 |
Aggregate notional amount | £ | £ 431,836 | |||
Interest rate swaps - Paying fixed rates | USD | ||||
Derivatives | ||||
Number of contracts | 34 | 34 | 34 | 34 |
Aggregate notional amount | $ | $ 1,707,557 | |||
Interest rate swaps - Receiving fixed rates | USD | ||||
Derivatives | ||||
Number of contracts | 1 | 1 | 1 | 1 |
Aggregate notional amount | $ | $ 470,000 | |||
Interest Rate Swap Guarantees | USD | ||||
Derivatives | ||||
Number of contracts | 6 | 6 | 6 | 6 |
Aggregate notional amount | $ | $ 378,757 | |||
Interest rate caps | USD | ||||
Derivatives | ||||
Number of contracts | 22 | 22 | 22 | 22 |
Aggregate notional amount | $ | $ 991,354 | |||
Credit spread instrument | USD | ||||
Derivatives | ||||
Number of contracts | 4 | 4 | 4 | 4 |
Aggregate notional amount | $ | $ 69,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 40,555 | $ 28,943 |
Fair Value of Derivatives in a Liability Position | 41,324 | 8,740 |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 33,841 | 14,385 |
Fair Value of Derivatives in a Liability Position | 4 | |
Interest Rate Swap Guarantees | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in a Liability Position | 849 | 614 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 6,585 | 14,558 |
Fair Value of Derivatives in a Liability Position | 39,951 | 7,834 |
Credit spread instrument | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 129 | |
Fair Value of Derivatives in a Liability Position | $ 520 | $ 292 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives | |||
Gain Reclassified from AOCI into Income (effective portion) | $ (6,939) | $ (7,728) | $ (11,264) |
(Loss) gain on derivative financial instruments, net | (82,178) | (6,310) | 34,603 |
Interest rate swaps | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | (48,692) | (10,516) | (1,593) |
Interest rate swaps | Cash flow hedges | Derivatives designated as hedging instruments | |||
Derivatives | |||
Gain Recognized in OCI (effective portion) | 8 | ||
Gain Reclassified from AOCI into Income (effective portion) | 33 | ||
Interest rate swap guarantees | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | (235) | (3,350) | (114) |
Foreign exchange contracts | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | (32,561) | 8,801 | 36,040 |
Credit spread instrument | |||
Derivatives | |||
(Loss) gain on derivative financial instruments, net | $ (690) | $ (1,245) | $ 270 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position | $ 40,555 | $ 28,943 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,850,131 | 4,618,197 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 5,850,131 | 4,618,197 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 5,815,523 | 4,614,769 |
Cash Collateral Pledged | 27,416 | 292 |
Net Amount | 7,192 | 3,136 |
Derivatives | ||
Assets | ||
Gross Amounts of Recognized Assets | 40,555 | 28,943 |
Net Amounts of Assets Presented in the Statement of Financial Position | 40,555 | 28,943 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 6,716 | 5,312 |
Cash Collateral Received | 33,772 | 14,208 |
Net Amount | 67 | 9,423 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 41,324 | 8,740 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 41,324 | 8,740 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 6,716 | 5,312 |
Cash Collateral Pledged | 27,416 | 292 |
Net Amount | 7,192 | 3,136 |
Repurchase Agreements | ||
Liabilities | ||
Gross Amounts of Recognized Liabilities | 5,808,807 | 4,609,457 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 5,808,807 | 4,609,457 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | $ 5,808,807 | $ 4,609,457 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated CLO (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 |
Assets: | |||
Cash and cash equivalents | $ 563,217 | $ 478,388 | |
Loans held-for-investment | 11,087,073 | 10,586,074 | |
Accrued interest receivable | 95,980 | 64,087 | |
Other assets | 190,748 | 211,323 | |
Total Assets | 80,873,509 | 78,042,336 | |
Accounts payable, accrued expenses and other liabilities | 206,845 | 212,006 | |
Collateralized loan obligations, net | 930,554 | 928,060 | |
Liabilities | 76,010,933 | 72,905,322 | |
Primary beneficiary | |||
Assets: | |||
Total Assets | 64,238,328 | 62,187,175 | |
Liabilities | 62,776,371 | 60,743,494 | |
Collateralized Loan Obligation | |||
Assets: | |||
Collateralized loan obligations, net | $ 936,400 | ||
Collateralized Loan Obligation | Primary beneficiary | |||
Assets: | |||
Cash and cash equivalents | 96,998 | ||
Loans held-for-investment | 1,002,441 | 1,073,504 | |
Accrued interest receivable | 5,454 | 3,129 | |
Other assets | 557 | 26,496 | |
Total Assets | 1,105,450 | 1,103,129 | |
Accounts payable, accrued expenses and other liabilities | 663 | 1,362 | |
Collateralized loan obligations, net | 930,554 | 928,060 | |
Liabilities | $ 931,217 | $ 929,422 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)item | Jan. 31, 2020 | Dec. 31, 2019USD ($) | |
Variable interest entities | |||
Total Assets | $ 80,873,509 | $ 78,042,336 | |
Total Liabilities | $ 76,010,933 | 72,905,322 | |
Number of collateralized debt obligation | item | 0 | ||
Debt obligations to beneficial interest holders, unpaid principal balances | $ 1,750,000 | 1,950,000 | |
Investment in unconsolidated entities | 108,054 | 84,329 | |
Primary beneficiary | |||
Variable interest entities | |||
Total Assets | 64,238,328 | 62,187,175 | |
Total Liabilities | $ 62,776,371 | $ 60,743,494 | |
Equity interest | 51.00% | 51.00% | |
Primary beneficiary | ASU 2015-02 | |||
Variable interest entities | |||
Total Assets | $ 99,600 | ||
Total Liabilities | 53,600 | ||
Primary beneficiary | CMBS Venture Holdings | |||
Variable interest entities | |||
Total Assets | 330,000 | ||
Total Liabilities | 85,000 | ||
Primary beneficiary | SPT Dolphin | ASU 2015-02 | |||
Variable interest entities | |||
Total Assets | 673,000 | ||
Total Liabilities | $ 444,300 | ||
Not primary beneficiary | |||
Variable interest entities | |||
Number of CDO structures currently in default | item | 5 | ||
Number of CDO structures | item | 6 | ||
Number of CDO structures that entered default during the period | item | 2 | ||
Maximum risk of loss related to VIEs, on fair value basis | $ 19,500 | ||
Not primary beneficiary | ASU 2015-02 | Measurement Period Adjustments | |||
Variable interest entities | |||
Investment in unconsolidated entities | 25,100 | ||
Not primary beneficiary | Securitization SPEs | |||
Variable interest entities | |||
Debt obligations to beneficial interest holders, unpaid principal balances | $ 4,000,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2020shares | Apr. 30, 2020USD ($)shares | Sep. 30, 2019shares | Dec. 31, 2018GBP (£) | Apr. 30, 2018shares | Mar. 31, 2017shares | May 31, 2015shares | Dec. 31, 2020USD ($)itemshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | |
Termination Fee | ||||||||||
Granted (in shares) | shares | 2,814,753 | |||||||||
Total fair value of shares vested | $ 35,700 | $ 33,200 | $ 18,300 | |||||||
Share-based compensation expense, before tax | 65,734 | 46,237 | 43,458 | |||||||
General and administrative: | ||||||||||
Termination Fee | ||||||||||
Share-based compensation expense, before tax | $ 13,254 | 15,900 | 10,185 | |||||||
Starwood Property Trust, Inc. Manager Equity Plan | ||||||||||
Termination Fee | ||||||||||
Granted (in shares) | shares | 1,800,000 | |||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | ||||||||||
Termination Fee | ||||||||||
Granted (in shares) | shares | 1,800,000 | 1,200,000 | 775,000 | 1,000,000 | 675,000 | |||||
Award vesting period | 3 years | |||||||||
Share-based compensation expense, before tax | $ 18,000 | 20,200 | 12,600 | |||||||
Co-origination of loan with SEREF and private funds, London | ||||||||||
Termination Fee | ||||||||||
Loans funded by the reporting entity | £ | £ 21.3 | |||||||||
Manager | ||||||||||
Related-Party Transactions | ||||||||||
Base management fee as a percentage of stock holders' equity | 1.50% | |||||||||
Base management fee incurred | $ 19,100 | $ 76,600 | 77,000 | 73,200 | ||||||
Base management fee in shares of common stock | shares | 1,422,143 | |||||||||
Base management fee payable | $ 19,200 | 19,300 | ||||||||
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 | $ 30,800 | 20,200 | 41,400 | |||||||
Incentive fees payable | 15,000 | 18,100 | ||||||||
Executive compensation and other reimbursable expenses | 8,500 | 7,700 | $ 7,700 | |||||||
Executive compensation and other reimbursable expense payable | $ 5,000 | $ 3,500 | ||||||||
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 | 341,635 | 182,861 | 252,375 | |||||||
Grant date fair value | $ 3,900 | $ 4,100 | $ 5,300 | |||||||
Share-based compensation expense, before tax | 3,400 | 4,100 | 2,900 | |||||||
Infrastructure Lending Segment | Manager | General and administrative: | ||||||||||
Termination Fee | ||||||||||
Cash payment | $ 0 | $ 0 | $ 1,300 |
Related-Party Transactions - In
Related-Party Transactions - Investments in Loans and Securities and Other Arrangements (Details) $ in Thousands, € in Millions, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
Aug. 31, 2020USD ($) | Mar. 31, 2020GBP (£)ft²property$ / ft² | Feb. 29, 2020USD ($)Option | Jan. 31, 2020USD ($) | Jan. 31, 2020EUR (€) | Nov. 30, 2019EUR (€) | Sep. 30, 2019EUR (€) | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2019USD ($)Plant | Dec. 31, 2018GBP (£) | Jun. 30, 2018USD ($)building | Mar. 31, 2018EUR (€) | Jan. 31, 2018USD ($)Plant | Jan. 31, 2016USD ($) | Oct. 31, 2014item | Apr. 30, 2013 | Dec. 31, 2012USD ($)shares | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Sep. 30, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019EUR (€)item | |
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 5,337,399 | $ 9,094,714 | $ 6,723,144 | |||||||||||||||||||||||||||
Outstanding amount | $ 12,139,908 | 11,470,224 | 9,794,254 | $ 7,382,641 | ||||||||||||||||||||||||||
Ownership percentage | 2.00% | |||||||||||||||||||||||||||||
Income (Loss) from Equity Method Investments | $ 37,317 | (101,354) | 10,540 | |||||||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") | $ 267 | |||||||||||||||||||||||||||||
RMBS | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Payments to acquire security | 176,600 | |||||||||||||||||||||||||||||
CMBS | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Number of regional malls by which investment is secured | building | 5 | |||||||||||||||||||||||||||||
Payments to acquire security | $ 84,100 | $ 9,700 | ||||||||||||||||||||||||||||
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 | $ 925,000 | |||||||||||||||||||||||||||||
Outstanding amount | 78,300 | |||||||||||||||||||||||||||||
Upsize to term loan | $ 350,000 | |||||||||||||||||||||||||||||
Number of domestic natural gas power plants | Plant | 5 | |||||||||||||||||||||||||||||
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 | £ | £ 62.5 | |||||||||||||||||||||||||||||
Loans repaid by the borrower | £ | £ 75 | |||||||||||||||||||||||||||||
Loans funded by the reporting entity | £ | 21.3 | |||||||||||||||||||||||||||||
Co-origination of loan with SEREF | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Outstanding amount | € | € 14.2 | |||||||||||||||||||||||||||||
Number of properties | property | 3 | |||||||||||||||||||||||||||||
Purchase of First Mortgage Loan Participation | First mortgage loan participation | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 130,000 | |||||||||||||||||||||||||||||
Outstanding amount | 64,100 | |||||||||||||||||||||||||||||
Number of properties | Plant | 4 | |||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||
Outstanding amount | € | 52.8 | |||||||||||||||||||||||||||||
Development of Grade A office building and convention center | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 58.9 | |||||||||||||||||||||||||||||
Joint venture | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | |||||||||||||||||||||||||||||
Retail Fund | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Number of properties | item | 4 | 4 | 4 | |||||||||||||||||||||||||||
Income (Loss) from Equity Method Investments | $ 0 | $ 114,400 | 3,700 | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates, at Fair Value, Gross Reductions | 47,200 | |||||||||||||||||||||||||||||
Total other-than-temporary impairment ("OTTI") | 71,900 | |||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 33.00% | |||||||||||||||||||||||||||||
Fund IX | Joint venture | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Percentage of acquired interest in joint venture | 50.00% | |||||||||||||||||||||||||||||
SEREF | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | 14.7 | |||||||||||||||||||||||||||||
First priority infrastructure term loan | € | € 15 | |||||||||||||||||||||||||||||
Ownership percentage | 2.00% | |||||||||||||||||||||||||||||
Number of shares acquired | shares | 9,140,000 | |||||||||||||||||||||||||||||
Value of shares acquired | $ 14,700 | |||||||||||||||||||||||||||||
Ownership percentage acquired | 4.00% | |||||||||||||||||||||||||||||
SEREF | Mezzanine Loans | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Payments to Fund Long-term Loans to Related Parties | € | € 70.3 | |||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 35.2 | |||||||||||||||||||||||||||||
SEREF | Co-origination of loan with SEREF and private funds, London | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Outstanding amount | £ | £ 20.6 | |||||||||||||||||||||||||||||
Loans funded by the related party | £ | £ 41.2 | |||||||||||||||||||||||||||||
SEREF | Development of Grade A office building and convention center | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | € | € 39 | € 73.6 | ||||||||||||||||||||||||||||
First priority infrastructure term loan | € | € 192 | |||||||||||||||||||||||||||||
Outstanding amount | € | € 21.3 | |||||||||||||||||||||||||||||
Residential mortgage originator | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Subordinated loan to a residential mortgage | $ 2,000 | $ 4,500 | ||||||||||||||||||||||||||||
Highmark Residential | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Number of additional properties under management | property | 32 | |||||||||||||||||||||||||||||
Payments to related party | $ 2,100 | 1,600 | 100 | |||||||||||||||||||||||||||
Affiliates of Manager | Origination Of Loan For Development And Recapitalization Of Luxury Cabin Rentals | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Payments to Fund Long-term Loans to Related Parties | $ 3,500 | |||||||||||||||||||||||||||||
Outstanding amount | 45,300 | |||||||||||||||||||||||||||||
Affiliates of Manager | Origination Of First Mortgage Loan | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Payments to Fund Long-term Loans to Related Parties | $ 99,000 | |||||||||||||||||||||||||||||
Interest rate | 10.50% | |||||||||||||||||||||||||||||
Term | 36 months | |||||||||||||||||||||||||||||
Number of options | Option | 2 | |||||||||||||||||||||||||||||
Renewal term | 1 year | |||||||||||||||||||||||||||||
Partial repayment on a first mortgage and mezzanine loan received | 245,000 | |||||||||||||||||||||||||||||
First priority infrastructure term loan | $ 339,200 | |||||||||||||||||||||||||||||
Outstanding amount | 29,400 | |||||||||||||||||||||||||||||
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 | $ 1,800 | 1,300 | 2,000 | |||||||||||||||||||||||||||
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% | 10.00% | |||||||||||||||||||||||||||
Affiliates Of Chairman And CEO | Office Lease Agreement With Affiliate Of Chairman And CEO | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Area of office space | ft² | 74,000 | |||||||||||||||||||||||||||||
Lease Term | 15 years | |||||||||||||||||||||||||||||
Operating Lease, Annual Base Rent Per Square Foot | $ / ft² | 52 | |||||||||||||||||||||||||||||
Operating Lease, Percentage Of Increase in Annual Base Rent | 3.00% | |||||||||||||||||||||||||||||
Security Deposit | $ 1,900 | |||||||||||||||||||||||||||||
Loans held-for-sale, residential | Residential mortgage originator | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Acquisitions and originations of mortgage financing | $ 244,400 | 353,000 | 135,600 | |||||||||||||||||||||||||||
Investing and Servicing Segment | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Purchase price | 207,400 | $ 207,400 | $ 207,400 | $ 207,400 | ||||||||||||||||||||||||||
Investing and Servicing Segment | REO Portfolio | CMBS | ||||||||||||||||||||||||||||||
Related-Party Transactions | ||||||||||||||||||||||||||||||
Net real estate assets | $ 0 | 8,600 | 27,700 | |||||||||||||||||||||||||||
Purchase price | $ 8,800 | $ 28,000 |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-Controlling Interests (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 09, 2020 | Sep. 16, 2020 | Jun. 16, 2020 | 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 | Feb. 29, 2020 | Dec. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Nov. 30, 2019 | 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 | $ 400,000 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Period for repurchase of common stock | 1 year | |||||||||||||||||||||
Common stock repurchased (in shares) | 2,268,551 | 573,255 | ||||||||||||||||||||
Repurchase of common stock | $ 33,828 | $ 12,090 | ||||||||||||||||||||
Debt repurchased amount | 0 | 0 | $ 0 | |||||||||||||||||||
Remaining capacity to repurchase common stock | 366,200 | |||||||||||||||||||||
Net income attributable to non-controlling interests | 34,392 | $ 27,271 | 25,367 | |||||||||||||||||||
Investment securities | $ 810,238 | 736,658 | 810,238 | |||||||||||||||||||
Accrued interest receivable | $ 64,087 | 95,980 | 64,087 | |||||||||||||||||||
Amount of non-controlling interest already held by a purchaser of a property | 300 | |||||||||||||||||||||
Payment to acquire non-controlling interest | $ 99,512 | $ 49,958 | $ 256,404 | |||||||||||||||||||
2019 Notes | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued to settle redemption | 3,600,000 | 12,400,000 | ||||||||||||||||||||
Value of shares issued to settle redemption | $ 78,000 | $ 263,400 | ||||||||||||||||||||
Class A Units | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Number of shares of redemption | 500,000 | 0 | ||||||||||||||||||||
Number of shares settled in common stock | 400,000 | 1,000,000 | ||||||||||||||||||||
Number of shares settled in cash | 100,000 | |||||||||||||||||||||
Cash amount settled | $ 1,300 | |||||||||||||||||||||
CMBS JV | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | 51.00% | ||||||||||||||||||||
Net income attributable to non-controlling interests | 9,300 | |||||||||||||||||||||
Assets sold to joint venture | $ 333,000 | $ 333,000 | ||||||||||||||||||||
Investment securities | 318,300 | 318,300 | $ 24,500 | |||||||||||||||||||
Investments in existing CMBS JV | 13,300 | 13,300 | ||||||||||||||||||||
Accrued interest receivable | 1,400 | 1,400 | ||||||||||||||||||||
Amount of equity method investment funded | 169,800 | |||||||||||||||||||||
Non-controlling interest | $ 175,600 | $ 126,700 | $ 175,600 | $ 11,200 | ||||||||||||||||||
CMBS JV | Joint Venture Partner | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | 49.00% | ||||||||||||||||||||
Amount of equity method investment funded | $ 163,200 | |||||||||||||||||||||
Woodstar II Portfolio | Class A Units | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued | 100,000 | 100,000 | 1,700,000 | |||||||||||||||||||
Right to receive additional shares | 1,900,000 | |||||||||||||||||||||
Net income attributable to non-controlling interests | $ 20,400 | $ 21,600 | $ 17,600 | |||||||||||||||||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Shares issued | 7,403,731 | 10,183,505 | 10,200,000 | |||||||||||||||||||
Right to receive additional shares | 1,910,563 | 1,411,642 | 1,910,563 | 1,900,000 | ||||||||||||||||||
Number of common stock per unit | 1 | 1 | ||||||||||||||||||||
Redemption of units | 493,318 | 974,176 | 0 | |||||||||||||||||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | Non-Controlling Interests | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Redemption of units | 226,700,000 | 235,900,000 | ||||||||||||||||||||
REIS Equity Portfolio | ||||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||
Amount of non-controlling interest already held by a purchaser of a property | $ 300 | |||||||||||||||||||||
Payment to acquire non-controlling interest | $ 3,300 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2020 | Nov. 30, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | May 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2017 |
Equity Incentive Plans | ||||||||||||||||||
Share-based compensation expense, before tax | $ 65,734 | $ 46,237 | $ 43,458 | |||||||||||||||
Granted (in shares) | 2,814,753 | |||||||||||||||||
Management fees | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Share-based compensation expense, before tax | $ 52,480 | $ 30,337 | $ 33,273 | |||||||||||||||
Vested immediately on the grant date | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Granted (in shares) | 218,898 | |||||||||||||||||
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 | 4,709,531 | |||||||||||||||||
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | Restricted stock units | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Granted (in shares) | 1,800,000 | 1,200,000 | 775,000 | 1,000,000 | 675,000 | |||||||||||||
Awards granted, fair value | $ 30,078 | $ 29,484 | $ 16,329 | $ 22,240 | $ 16,511 | |||||||||||||
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) | 1,014,753 | |||||||||||||||||
Award vesting period | 3 years | |||||||||||||||||
Starwood Property Trust, Inc. Equity Plan | Restricted stock | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Granted (in shares) | 1,014,753 | 520,236 | 851,170 | |||||||||||||||
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) | 1,800,000 | |||||||||||||||||
Shares of common stock issued | 2,065,322 | 355,910 | 38,942 | 495,363 | 98,026 | 131,179 | 224,071 | 545,641 | ||||||||||
Price per share | $ 25.51 | $ 24.08 | $ 22.16 | $ 21.94 | $ 21.67 | $ 21.49 | $ 20.13 | |||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Base management fee | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Shares of common stock issued | 1,422,143 | |||||||||||||||||
Price per share | $ 13.42 | |||||||||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Management fees | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Share-based compensation expense, before tax | $ 17,987 | $ 20,255 | $ 12,573 | |||||||||||||||
Shares of common stock issued | 643,179 | |||||||||||||||||
Price per share | $ 12.25 | |||||||||||||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | ||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||
Share-based compensation expense, before tax | $ 18,000 | $ 20,200 | $ 12,600 | |||||||||||||||
Granted (in shares) | 1,800,000 | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based compensation expenses | |||
Total share-based compensation expense | $ 65,734 | $ 46,237 | $ 43,458 |
Management fees | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 52,480 | 30,337 | 33,273 |
Management fees | Starwood Property Trust, Inc. Manager Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 17,987 | 20,255 | 12,573 |
Management fees | Management agreement | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 15,405 | 10,082 | 20,700 |
Management fees | Base management fee | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 19,088 | ||
General and administrative: | |||
Share-based compensation expenses | |||
Total share-based compensation expense | 13,254 | 15,900 | 10,185 |
General and administrative: | Starwood Property Trust, Inc. Equity Plan | |||
Share-based compensation expenses | |||
Total share-based compensation expense | $ 13,254 | $ 15,900 | $ 10,185 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 2,718,767 | ||
Granted (in shares) | 2,814,753 | ||
Vested (in shares) | (1,626,555) | ||
Forfeited (in shares) | (25,464) | ||
Balance at the end of the period (in shares) | 3,881,501 | 2,718,767 | |
Weighted Average Grant Date Fair Value (per share) | |||
Balance at the beginning of period (in dollars per share) | $ 22.74 | ||
Granted (in dollars per share) | 14.64 | $ 24.01 | $ 21.20 |
Vested (in dollars per share) | 21.93 | ||
Forfeited (in dollars per share) | 14.06 | ||
Balance at the end of period (in dollars per share) | $ 17.26 | $ 22.74 | |
Vesting Schedule | |||
2021 (in shares) | 1,782,537 | ||
2022 (in shares) | 1,332,783 | ||
2023 (in shares) | 766,181 | ||
Total unrecognized compensation costs related to unvested share-based compensation | $ 56.1 | ||
Total fair value of shares vested | $ 35.7 | $ 33.2 | $ 18.3 |
Period over which unrecognized compensation cost is expected to be recognized | 2 years 2 months 12 days | ||
Starwood Property Trust, Inc. Equity Plan | |||
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 1,413,170 | ||
Granted (in shares) | 1,014,753 | ||
Vested (in shares) | (807,854) | ||
Forfeited (in shares) | (25,464) | ||
Balance at the end of the period (in shares) | 1,594,605 | 1,413,170 | |
Vesting Schedule | |||
2021 (in shares) | 790,918 | ||
2022 (in shares) | 487,506 | ||
2023 (in shares) | 316,181 | ||
Starwood Property Trust, Inc. Manager Equity Plan | |||
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 1,305,597 | ||
Granted (in shares) | 1,800,000 | ||
Vested (in shares) | (818,701) | ||
Balance at the end of the period (in shares) | 2,286,896 | 1,305,597 | |
Vesting Schedule | |||
2021 (in shares) | 991,619 | ||
2022 (in shares) | 845,277 | ||
2023 (in shares) | 450,000 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Continuing Operations: | |||||||||||
Basic - Income attributable to STWD common stockholders | $ 331,689 | $ 509,664 | $ 385,830 | ||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (5,216) | (3,873) | (3,592) | ||||||||
Basic earnings | 326,473 | 505,791 | 382,238 | ||||||||
Continuing Operations: | |||||||||||
Basic - Income attributable to STWD common stockholders | 331,689 | 509,664 | 385,830 | ||||||||
Less: Income attributable to participating shares not already deducted as non-controlling interests | (5,216) | (3,873) | (3,592) | ||||||||
Loss on extinguishment of debt | (3,654) | (19,270) | (5,808) | ||||||||
Diluted earnings | $ 326,473 | $ 518,145 | $ 409,485 | ||||||||
Number of Shares: | |||||||||||
Basic - Average shares outstanding | 281,978 | 279,337 | 265,279 | ||||||||
Effect of dilutive securities - Contingently issuable shares (in shares) | 383 | 360 | 546 | ||||||||
Effect of dilutive securities - Unvested non-participating shares | 122 | 210 | |||||||||
Diluted - Average shares outstanding | 282,483 | 289,712 | 288,484 | ||||||||
Basic: | |||||||||||
Basic (in dollars per share) | $ 0.37 | $ 0.53 | $ 0.49 | $ (0.24) | $ 0.61 | $ 0.50 | $ 0.45 | $ 0.25 | $ 1.16 | $ 1.81 | $ 1.44 |
Diluted: | |||||||||||
Diluted (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.49 | $ (0.24) | $ 0.60 | $ 0.49 | $ 0.45 | $ 0.25 | $ 1.16 | $ 1.79 | $ 1.42 |
Convertible Senior Notes | |||||||||||
Continuing Operations: | |||||||||||
Add: Interest expense on Convertible Notes | $ 12,354 | $ 25,148 | |||||||||
Loss on extinguishment of debt | $ 2,099 | ||||||||||
Number of Shares: | |||||||||||
Effect of dilutive securities - Convertible Notes (in shares) | 9,805 | 22,659 |
Earnings per Share - Dilutive a
Earnings per Share - Dilutive and Antidilutive securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 10.6 | 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 | 14.4 | 13.3 | 13.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in AOCI by component | |||
Beginning balance | $ 50,932 | $ 58,660 | $ 69,924 |
OCI before reclassifications | (6,939) | (6,125) | (8,247) |
Amounts reclassified from AOCI | (1,603) | (3,017) | |
Net period OCI | (6,939) | (7,728) | (11,264) |
Ending balance | 43,993 | 50,932 | 58,660 |
Effective Portion of Cumulative Loss on Cash Flow Hedges | |||
Changes in AOCI by component | |||
Beginning balance | 25 | ||
OCI before reclassifications | 8 | ||
Amounts reclassified from AOCI | (33) | ||
Net period OCI | (25) | ||
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Changes in AOCI by component | |||
Beginning balance | 50,996 | 53,515 | 57,889 |
OCI before reclassifications | (6,939) | (2,460) | (1,390) |
Amounts reclassified from AOCI | (59) | (2,984) | |
Net period OCI | (6,939) | (2,519) | (4,374) |
Ending balance | 44,057 | 50,996 | 53,515 |
Foreign Currency Translation | |||
Changes in AOCI by component | |||
Beginning balance | (64) | 5,145 | 12,010 |
OCI before reclassifications | (3,665) | (6,865) | |
Amounts reclassified from AOCI | (1,544) | ||
Net period OCI | (5,209) | (6,865) | |
Ending balance | $ (64) | $ (64) | $ 5,145 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | $ (419,763) | $ (508,729) | $ (408,188) | ||||||||
Interest income from investment securities | 54,412 | 76,629 | 56,839 | ||||||||
Foreign currency gain (loss), net | 42,395 | 17,582 | (9,245) | ||||||||
Net income | $ 114,655 | $ 164,734 | $ 152,961 | $ (66,269) | $ 177,980 | $ 150,001 | $ 132,446 | $ 76,508 | $ 366,081 | 536,935 | 411,197 |
Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Net income | 1,603 | 3,017 | |||||||||
Effective Portion of Cumulative Loss on Cash Flow Hedges | Interest rate contracts | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest expense | 33 | ||||||||||
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | Amounts Reclassified from AOCI | |||||||||||
Accumulated Other Comprehensive Income | |||||||||||
Interest income from investment securities | 59 | 46 | |||||||||
Gain on sale of investments and other assets, net | 2,938 | ||||||||||
Total | 59 | $ 2,984 | |||||||||
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, 2020 | Dec. 31, 2019 |
Assets and liabilities measured at fair value | ||
Permitted reinvestment under static investment in VIEs | $ 0 | |
Marketable securities | 736,658 | $ 810,238 |
Domestic servicing rights | 13,202 | 16,917 |
Derivative assets | 40,555 | 28,943 |
Total Assets | 80,873,509 | 78,042,336 |
Total Liabilities | 76,010,933 | 72,905,322 |
Derivative liabilities | 41,324 | 8,740 |
Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 28,943 | |
Total Assets | 65,513,117 | 63,908,829 |
Derivative liabilities | 41,324 | 8,740 |
Total Liabilities | 62,817,695 | 60,752,234 |
Fair value measurements on recurring basis | Loans held-for-sale | ||
Assets and liabilities measured at fair value | ||
Loans held-for-sale, fair value option | 1,022,979 | 1,436,194 |
Fair value measurements on recurring basis | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 167,349 | 189,576 |
Fair value measurements on recurring basis | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 19,457 | 37,360 |
Fair value measurements on recurring basis | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 11,247 | 12,664 |
Fair value measurements on recurring basis | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 13,202 | 16,917 |
Fair value measurements on recurring basis | Level I | ||
Assets and liabilities measured at fair value | ||
Total Assets | 11,247 | 12,664 |
Fair value measurements on recurring basis | Level I | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 11,247 | 12,664 |
Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 28,943 | |
Total Assets | 40,555 | 41,295 |
Derivative liabilities | 41,324 | 8,740 |
Total Liabilities | 60,797,819 | 58,214,842 |
Fair value measurements on recurring basis | Level II | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 12,352 | |
Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 65,461,315 | 63,854,870 |
Total Liabilities | 2,019,876 | 2,537,392 |
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 | 1,022,979 | 1,436,194 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 167,349 | 189,576 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 19,457 | 25,008 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 13,202 | 16,917 |
Primary beneficiary | ||
Assets and liabilities measured at fair value | ||
Total Assets | 64,238,328 | 62,187,175 |
Total Liabilities | 62,776,371 | 60,743,494 |
Primary beneficiary | Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 40,555 | |
Total Assets | 64,238,328 | 62,187,175 |
Total Liabilities | 62,776,371 | 60,743,494 |
Primary beneficiary | Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 40,555 | |
Total Liabilities | 60,756,495 | 58,206,102 |
Primary beneficiary | Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 64,238,328 | 62,187,175 |
Total Liabilities | 2,019,876 | $ 2,537,392 |
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE Assets | ||
Assets and liabilities measured at fair value | ||
Total Assets | 64,238,328 | |
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
Total Liabilities | $ 2,019,876 |
Fair Value - Level III (Details
Fair Value - Level III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Net accretion | $ 12,818 | $ 11,791 | $ 15,253 |
Level III | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 61,317,478 | 52,931,064 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (2,140,452) | (1,135,425) | |
Included in earnings: Net accretion | 10,712 | 9,945 | |
Included in OCI | (6,939) | (2,519) | |
Purchases / Originations | 2,304,924 | 4,020,332 | |
Sales | (2,810,662) | (2,959,039) | |
Issuances | (29,927) | (116,273) | |
Cash repayments / receipts | (265,885) | (198,436) | |
Transfers into Level III | (1,393,905) | (1,723,212) | |
Transfers out of Level III | 1,902,944 | 765,565 | |
Consolidations of VIEs | 4,563,946 | 10,057,069 | |
Deconsolidations of VIEs | (10,795) | (331,593) | |
Balance at the end of the period | 63,441,439 | 61,317,478 | 52,931,064 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (2,164,481) | (1,202,534) | |
Amount of unrealized gains (losses) included in OCI attributable to assets still held at period end | (6,939) | ||
Level III | Loans held-for-sale | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 1,436,194 | 671,282 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 133,124 | 71,337 | |
Purchases / Originations | 2,304,924 | 4,015,167 | |
Sales | (2,802,722) | (2,951,713) | |
Cash repayments / receipts | (225,155) | (144,066) | |
Transfers out of Level III | (225,813) | ||
Transfers within Level III | 176,614 | ||
Balance at the end of the period | 1,022,979 | 1,436,194 | 671,282 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | 26,041 | (4,459) | |
Level III | RMBS | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 189,576 | 209,079 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Net accretion | 10,712 | 9,945 | |
Included in OCI | (6,939) | (2,519) | |
Cash repayments / receipts | (26,000) | (26,929) | |
Balance at the end of the period | 167,349 | 189,576 | 209,079 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | 10,712 | 9,858 | |
Amount of unrealized gains (losses) included in OCI attributable to assets still held at period end | (6,939) | ||
Level III | CMBS | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 25,008 | 25,228 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 6,991 | 505 | |
Purchases / Originations | 5,165 | ||
Sales | (7,940) | (7,326) | |
Cash repayments / receipts | (4,829) | (11,348) | |
Transfers into Level III | 5,350 | ||
Deconsolidations of VIEs | 227 | 7,434 | |
Balance at the end of the period | 19,457 | 25,008 | 25,228 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | 1,127 | (666) | |
Level III | Domestic Servicing Rights | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 16,917 | 20,557 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (3,715) | (3,640) | |
Balance at the end of the period | 13,202 | 16,917 | 20,557 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (3,715) | (3,640) | |
Level III | VIE Assets | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | 62,187,175 | 53,446,364 | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | (2,405,599) | (1,250,935) | |
Transfers within Level III | (176,614) | ||
Consolidations of VIEs | 4,665,636 | 10,368,817 | |
Deconsolidations of VIEs | (32,270) | (377,071) | |
Balance at the end of the period | 64,238,328 | 62,187,175 | 53,446,364 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (2,327,393) | (1,250,935) | |
Level III | VIE liabilities | |||
Changes in financial assets classified as Level III | |||
Balance at the beginning of the period | (2,537,392) | (1,441,446) | |
Total realized and unrealized gains (losses): | |||
Included in earnings: Change in fair value / gain on sale | 128,747 | 47,308 | |
Issuances | (29,927) | (116,273) | |
Cash repayments / receipts | (9,901) | (16,093) | |
Transfers into Level III | (1,393,905) | (1,728,562) | |
Transfers out of Level III | 1,902,944 | 991,378 | |
Consolidations of VIEs | (101,690) | (311,748) | |
Deconsolidations of VIEs | 21,248 | 38,044 | |
Balance at the end of the period | (2,019,876) | (2,537,392) | $ (1,441,446) |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | $ 128,747 | $ 47,308 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets not carried at fair value: | ||
HTM securities | $ 544,280 | $ 570,638 |
Financial liabilities not carried at fair value: | ||
Unsecured senior notes | 1,732,520 | 1,928,622 |
Carrying Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 11,116,929 | 10,034,030 |
HTM securities | 538,605 | 570,638 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 11,076,744 | 9,834,108 |
Unsecured senior notes | 1,732,520 | 1,928,622 |
Fair Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 11,107,316 | 10,086,372 |
HTM securities | 515,253 | 568,727 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 11,108,364 | 9,826,511 |
Unsecured senior notes | $ 1,786,667 | $ 2,022,283 |
Fair Value - Significant unobse
Fair Value - Significant unobservable inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Dec. 31, 2019USD ($)item | |
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 13,202 | $ 16,917 |
Total Assets | 80,873,509 | 78,042,336 |
Total Liabilities | 76,010,933 | 72,905,322 |
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 | 1,022,979 | 1,436,194 |
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 | 167,349 | 189,576 |
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 | 19,457 | 37,360 |
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 | 13,202 | 16,917 |
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 | $ 1,022,979 | $ 1,436,194 |
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 | 7 years 3 months 18 days | 8 years 3 months 18 days |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | Coupon | ||
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 | 0.033 | 0.034 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | FICO score | ||
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 | item | 519 | 580 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | LTV | ||
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 | 0.05 | 0.06 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | Purchase price | ||
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 | 0.844 | 0.856 |
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 | 39 years 3 months 18 days | 39 years 10 months 24 days |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | Coupon | ||
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 | 0.097 | 0.059 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | FICO score | ||
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 | item | 823 | 823 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | LTV | ||
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 | 0.94 | 0.94 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | Purchase price | ||
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 | 1.048 | 1.048 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, duration | 26 years 3 months 18 days | |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | Coupon | ||
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 | |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | FICO score | ||
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 | item | 727 | |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | LTV | ||
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 | 0.68 | |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | Purchase price | ||
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 | 0.998 | |
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 | $ 167,349 | $ 189,576 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Portfolio percentage | 23.00% | 34.00% |
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 | 0.036 | 0.031 |
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 | 0.007 | 0.005 |
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 | 0.10 | 0.05 |
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 | 0.23 | 0.27 |
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 | 0.194 | 0.249 |
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 | 0.054 | 0.050 |
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 | 0.85 | 0.93 |
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 | 0.32 | 0.29 |
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 | 0.82 | 0.85 |
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 | 0.009 | 0.016 |
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 | (0.17) | 0.28 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.076 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.024 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.20 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.19 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.54 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.001 | |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | 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 | 0.008 | |
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 | $ 19,457 | $ 25,008 |
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 debt securities, term | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | CMBS | Minimum | Debt yield | ||
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 | CMBS | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale debt securities, term | 7 years 7 months 6 days | 9 years 8 months 12 days |
Fair value measurements on recurring basis | Level III | CMBS | Maximum | Debt yield | ||
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 | 5.366 | 1.229 |
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale debt securities, term | 5 years 3 months 18 days | |
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average | Debt yield | ||
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 | 0.071 | |
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 | $ 13,202 | $ 16,917 |
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 | 0.0750 | 0.0750 |
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 | Weighted-average | 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 | 0.0750 | |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | Weighted-average | 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 | |
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 duration (in years) | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | VIE Assets | Minimum | Debt yield | ||
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 |
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 duration (in years) | 16 years 3 months 18 days | 19 years 2 months 12 days |
Fair value measurements on recurring basis | Level III | VIE Assets | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets, measurement input | 3.122 | 6.907 |
Fair value measurements on recurring basis | Level III | VIE Assets | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 3 years 9 months 18 days | |
Fair value measurements on recurring basis | Level III | VIE Assets | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets, measurement input | 0.143 | |
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 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
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) | 10 years 9 months 18 days | 12 years 8 months 12 days |
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities, measurement input | 3.122 | 6.907 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 3 years 9 months 18 days | |
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities, measurement input | 0.144 | |
Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Assets | $ 64,238,328 | $ 62,187,175 |
Total Liabilities | 62,776,371 | 60,743,494 |
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 | 64,238,328 | 62,187,175 |
Total Liabilities | 62,776,371 | 60,743,494 |
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 | 64,238,328 | 62,187,175 |
Total Liabilities | 2,019,876 | $ 2,537,392 |
Primary beneficiary | 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 | ||
Total Assets | $ 64,238,328 | |
Derivative Asset, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Primary beneficiary | 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 | ||
Total Liabilities | $ 2,019,876 | |
Derivative Liability, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes | |||
Assets | $ 80,873,509 | $ 78,042,336 | |
Cash | 563,217 | 478,388 | |
Current | |||
Federal | 5,690 | 4,917 | $ 10,508 |
Foreign | 195 | 977 | 293 |
State | 3,201 | 3,182 | 3,010 |
Total current | 9,086 | 9,076 | 13,811 |
Deferred | |||
Federal | 8,213 | 3,869 | 1,189 |
State | 2,898 | 287 | 330 |
Total deferred | 11,111 | 4,156 | 1,519 |
Total income tax provision | 20,197 | 13,232 | $ 15,330 |
Deferred tax assets and liabilities | |||
Lease assets | (310) | (1,950) | |
Lease liabilities | 579 | 2,752 | |
Net deferred tax assets (liabilities) | 2,908 | 14,020 | |
U.S. | |||
Deferred tax assets and liabilities | |||
Reserves and accruals | 4,571 | 4,017 | |
Domestic intangible assets | (1,672) | 8,185 | |
Investment in unconsolidated entities | (1,236) | (116) | |
Deferred income | 19 | ||
Net operating and capital loss carryforwards | 974 | 885 | |
Other temporary differences (asset) | 2 | 228 | |
Investing and Servicing Segment | TRS entities | |||
Income Taxes | |||
Assets | $ 1,400,000 | $ 1,600,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of statutory tax to effective tax | ||||
Federal statutory tax rate | $ 81,118 | $ 115,535 | $ 89,571 | |
REIT and other non-taxable income | (58,265) | (106,301) | (77,972) | |
State income taxes | 7,509 | 3,034 | 3,038 | |
Federal benefit of state tax deduction | (1,577) | (637) | (638) | |
Net operating loss carryback rate differential | (3,387) | |||
Intra-entity transfer | (5,385) | |||
Valuation allowance | 0 | 0 | 0 | |
Other | 184 | 1,601 | 1,331 | |
Total income tax provision | 20,197 | 13,232 | 15,330 | |
Pre-tax income (loss) from foreign operations | $ 0 | $ 900 | $ 1,400 | |
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) | (15.10%) | (19.30%) | (18.30%) | |
State income taxes (as a percent) | 1.90% | 0.50% | 0.70% | |
Federal benefit of state tax deduction (as a percent) | (0.40%) | (0.10%) | (0.10%) | |
Net operating loss carryback rate differential (as a percent) | (0.90%) | |||
Intra-entity transfer | (1.40%) | |||
Other (as a percent) | 0.10% | 0.30% | 0.30% | |
Effective tax rate (as a percent) | 5.20% | 2.40% | 3.60% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2020USD ($)itemcontract |
Lessee, Lease, Description [Line Items] | |
Number of contracts | item | 490 |
Infrastructure Lending Segment | Interest rate swaps | Derivatives designated as hedging instruments | |
Lessee, Lease, Description [Line Items] | |
Number of contracts | contract | 6 |
Commitments | Commercial and Residential Lending Segment | |
Lessee, Lease, Description [Line Items] | |
Value of loans with future funding commitments | $ 1,600 |
Value of loans with future funding commitments expected to fund | 1,300 |
Commitments | Infrastructure Lending Segment | |
Lessee, Lease, Description [Line Items] | |
Value of loans with future funding commitments | 201.2 |
Revolvers and letters of credit | Infrastructure Lending Segment | |
Lessee, Lease, Description [Line Items] | |
Value of loans with future funding commitments | 121.6 |
Outstanding | 19.5 |
Delayed draw term loans | Infrastructure Lending Segment | |
Lessee, Lease, Description [Line Items] | |
Value of loans with future funding commitments | $ 79.6 |
Commitments and Contingencies -
Commitments and Contingencies - Lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies. | |||
Operating lease costs | $ 5,571 | $ 5,634 | $ 4,962 |
Short-term lease costs | 42 | 115 | 210 |
Sublease income | (1,509) | (1,613) | (1,643) |
Total lease cost | $ 4,104 | $ 4,136 | $ 3,529 |
Commitments and Contingencies_3
Commitments and Contingencies - Cash paid (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies. | ||
Cash paid for amounts included in the measurement of lease liabilities-operating | $ 6,268 | $ 5,215 |
Commitments and Contingencies_4
Commitments and Contingencies - Weighted average lease (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies. | ||
Weighted-average remaining lease term | 7 years | 6 years |
Weighted-average discount rate | 4.10% | 4.40% |
Commitments and Contingencies_5
Commitments and Contingencies - Future maturity of lease (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2019 |
Future maturity of operating lease liabilities: | ||
2021 | $ 3,480 | |
2022 | 1,272 | |
2023 | 1,281 | |
2024 | 1,290 | |
2025 | 1,350 | |
Thereafter | 4,461 | |
Total | 13,134 | |
Less interest component | (1,691) | |
Operating lease liability | $ 11,443 | $ 12,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesMember | us-gaap:AccountsPayableAndAccruedLiabilitiesMember |
Segment and Geographic Data - R
Segment and Geographic Data - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||||||||||
Interest income from loans | $ 751,943 | $ 724,013 | $ 620,543 | ||||||||
Interest income from investment securities | 54,412 | 76,629 | 56,839 | ||||||||
Servicing fees | 29,634 | 54,296 | 78,766 | ||||||||
Rental income | 297,828 | 337,966 | 349,684 | ||||||||
Other revenues | 2,338 | 3,515 | 3,448 | ||||||||
Total revenues | $ 290,562 | $ 267,427 | $ 265,606 | $ 312,560 | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | 1,136,155 | 1,196,419 | 1,109,280 |
Costs and expenses: | |||||||||||
Management fees | 127,127 | 119,132 | 129,455 | ||||||||
Interest expense | 419,763 | 508,729 | 408,188 | ||||||||
General and administrative | 157,874 | 155,112 | 136,132 | ||||||||
Acquisition and investment pursuit costs | 3,572 | 1,056 | 8,587 | ||||||||
Costs of rental operations | 117,676 | 122,982 | 127,068 | ||||||||
Depreciation and amortization | 94,405 | 113,322 | 132,649 | ||||||||
Credit loss provision (reversal), net | 43,153 | 7,126 | 34,821 | ||||||||
Other expense | 838 | 2,365 | 732 | ||||||||
Total costs and expenses | 964,408 | 1,029,824 | 977,632 | ||||||||
Other income (loss): | |||||||||||
Change in net assets related to consolidated VIEs | 78,258 | 236,309 | 165,892 | ||||||||
Change in fair value of servicing rights | (3,715) | (3,640) | (10,202) | ||||||||
Change in fair value of investment securities, net | 5,393 | 833 | 10,345 | ||||||||
Change in fair value of mortgage loans, net | 133,124 | 71,601 | 40,522 | ||||||||
Earnings (loss) from unconsolidated entities | 37,317 | (101,354) | 10,540 | ||||||||
Gain (loss) on sale of investments and other assets, net | 7,310 | 188,028 | 59,044 | ||||||||
(Loss) gain on derivative financial instruments, net | (82,178) | (6,310) | 34,603 | ||||||||
Foreign currency (loss) gain, net | 42,395 | 17,582 | (9,245) | ||||||||
Loss on extinguishment of debt | (3,654) | (19,270) | (5,808) | ||||||||
Other income (loss), net | 281 | (207) | (812) | ||||||||
Total other income | 214,531 | 383,572 | 294,879 | ||||||||
Income before income taxes | 386,278 | 550,167 | 426,527 | ||||||||
Income tax (provision) benefit | (20,197) | (13,232) | (15,330) | ||||||||
Net income | 114,655 | 164,734 | 152,961 | (66,269) | 177,980 | 150,001 | 132,446 | 76,508 | 366,081 | 536,935 | 411,197 |
Net income attributable to Starwood Property Trust, Inc. | (34,392) | (27,271) | (25,367) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | $ 106,968 | $ 151,834 | $ 139,656 | $ (66,769) | $ 171,869 | $ 140,396 | $ 127,016 | $ 70,383 | 331,689 | 509,664 | 385,830 |
Operating Segments and Corporate | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 751,943 | 724,013 | 620,543 | ||||||||
Interest income from investment securities | 174,950 | 205,236 | 178,258 | ||||||||
Servicing fees | 42,355 | 70,385 | 104,287 | ||||||||
Rental income | 297,828 | 337,966 | 349,684 | ||||||||
Other revenues | 2,343 | 3,541 | 3,624 | ||||||||
Total revenues | 1,269,419 | 1,341,141 | 1,256,396 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 127,069 | 118,971 | 129,043 | ||||||||
Interest expense | 420,149 | 509,377 | 409,174 | ||||||||
General and administrative | 157,538 | 154,769 | 135,793 | ||||||||
Acquisition and investment pursuit costs | 3,572 | 1,056 | 8,587 | ||||||||
Costs of rental operations | 117,676 | 122,982 | 127,068 | ||||||||
Depreciation and amortization | 94,405 | 113,322 | 132,649 | ||||||||
Credit loss provision (reversal), net | 43,153 | 7,126 | 34,821 | ||||||||
Other expense | 838 | 2,365 | 732 | ||||||||
Total costs and expenses | 964,400 | 1,029,968 | 977,867 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of servicing rights | 11,415 | (1,468) | (14,373) | ||||||||
Change in fair value of investment securities, net | (66,511) | 88,122 | 30,464 | ||||||||
Change in fair value of mortgage loans, net | 133,124 | 71,601 | 40,522 | ||||||||
Earnings (loss) from unconsolidated entities | 38,857 | (99,547) | 12,530 | ||||||||
Gain (loss) on sale of investments and other assets, net | 7,310 | 188,028 | 59,044 | ||||||||
(Loss) gain on derivative financial instruments, net | (82,178) | (6,310) | 34,603 | ||||||||
Foreign currency (loss) gain, net | 42,395 | 17,582 | (9,245) | ||||||||
Loss on extinguishment of debt | (3,654) | (19,270) | (5,808) | ||||||||
Other income (loss), net | 281 | (207) | (812) | ||||||||
Total other income | 81,039 | 238,531 | 146,925 | ||||||||
Income before income taxes | 386,058 | 549,704 | 425,454 | ||||||||
Income tax (provision) benefit | (20,197) | (13,232) | (15,330) | ||||||||
Net income | 365,861 | 536,472 | 410,124 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (34,172) | (26,808) | (24,294) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 331,689 | 509,664 | 385,830 | ||||||||
Operating segment | Commercial and Residential Lending Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 665,503 | 610,316 | 576,564 | ||||||||
Interest income from investment securities | 78,490 | 81,255 | 50,063 | ||||||||
Servicing fees | 549 | 423 | 421 | ||||||||
Rental income | 4,706 | ||||||||||
Other revenues | 412 | 1,038 | 902 | ||||||||
Total revenues | 749,660 | 693,032 | 627,950 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 796 | 1,495 | 1,838 | ||||||||
Interest expense | 176,230 | 222,118 | 160,769 | ||||||||
General and administrative | 41,972 | 29,481 | 26,324 | ||||||||
Acquisition and investment pursuit costs | 2,406 | 1,351 | 2,490 | ||||||||
Costs of rental operations | 3,186 | 2,691 | |||||||||
Depreciation and amortization | 1,708 | 1,091 | 76 | ||||||||
Credit loss provision (reversal), net | 47,256 | 2,616 | 34,821 | ||||||||
Other expense | 307 | 307 | 307 | ||||||||
Total costs and expenses | 273,861 | 261,150 | 226,625 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of investment securities, net | (15,108) | (1,084) | (2,765) | ||||||||
Change in fair value of mortgage loans, net | 76,897 | 10,462 | (6,851) | ||||||||
Earnings (loss) from unconsolidated entities | 8,779 | 10,649 | 5,063 | ||||||||
Gain (loss) on sale of investments and other assets, net | (961) | 4,619 | 4,019 | ||||||||
(Loss) gain on derivative financial instruments, net | (58,664) | (20,325) | 17,654 | ||||||||
Foreign currency (loss) gain, net | 42,205 | 17,342 | (7,816) | ||||||||
Loss on extinguishment of debt | (22) | (857) | (730) | ||||||||
Other income (loss), net | 43 | ||||||||||
Total other income | 53,126 | 20,806 | 8,617 | ||||||||
Income before income taxes | 528,925 | 452,688 | 409,942 | ||||||||
Income tax (provision) benefit | (21,091) | (4,818) | (2,801) | ||||||||
Net income | 507,834 | 447,870 | 407,141 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (14) | (392) | (1,451) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 507,820 | 447,478 | 405,690 | ||||||||
Operating segment | Infrastructure Lending Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 77,851 | 99,580 | 28,995 | ||||||||
Interest income from investment securities | 2,637 | 6,318 | 1,095 | ||||||||
Other revenues | 499 | 751 | 619 | ||||||||
Total revenues | 80,987 | 106,649 | 30,709 | ||||||||
Costs and expenses: | |||||||||||
Interest expense | 40,913 | 62,836 | 20,949 | ||||||||
General and administrative | 15,673 | 18,260 | 5,631 | ||||||||
Acquisition and investment pursuit costs | 1,183 | 75 | 6,806 | ||||||||
Depreciation and amortization | 342 | 83 | |||||||||
Credit loss provision (reversal), net | (4,103) | 4,510 | |||||||||
Total costs and expenses | 54,008 | 85,764 | 33,386 | ||||||||
Other income (loss): | |||||||||||
Earnings (loss) from unconsolidated entities | (767) | ||||||||||
Gain (loss) on sale of investments and other assets, net | 306 | 3,041 | |||||||||
(Loss) gain on derivative financial instruments, net | (1,499) | (3,349) | 1,821 | ||||||||
Foreign currency (loss) gain, net | 207 | 205 | (1,425) | ||||||||
Loss on extinguishment of debt | (959) | (11,357) | |||||||||
Other income (loss), net | (50) | ||||||||||
Total other income | (2,712) | (11,510) | 396 | ||||||||
Income before income taxes | 24,267 | 9,375 | (2,281) | ||||||||
Income tax (provision) benefit | (117) | 89 | (292) | ||||||||
Net income | 24,150 | 9,464 | (2,573) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 24,150 | 9,464 | (2,573) | ||||||||
Operating segment | Investing and Servicing Segment | |||||||||||
Revenues: | |||||||||||
Interest income from loans | 8,589 | 14,117 | 14,984 | ||||||||
Interest income from investment securities | 93,823 | 117,663 | 127,100 | ||||||||
Servicing fees | 41,806 | 69,962 | 103,866 | ||||||||
Rental income | 37,670 | 50,872 | 57,231 | ||||||||
Other revenues | 1,139 | 1,317 | 1,299 | ||||||||
Total revenues | 183,027 | 253,931 | 304,480 | ||||||||
Costs and expenses: | |||||||||||
Management fees | 901 | 72 | 72 | ||||||||
Interest expense | 24,303 | 33,621 | 27,459 | ||||||||
General and administrative | 80,039 | 87,115 | 84,978 | ||||||||
Acquisition and investment pursuit costs | (29) | (587) | (663) | ||||||||
Costs of rental operations | 17,354 | 24,921 | 27,436 | ||||||||
Depreciation and amortization | 16,109 | 19,587 | 21,889 | ||||||||
Other expense | 365 | 452 | |||||||||
Total costs and expenses | 138,677 | 165,094 | 161,623 | ||||||||
Other income (loss): | |||||||||||
Change in fair value of servicing rights | 11,415 | (1,468) | (14,373) | ||||||||
Change in fair value of investment securities, net | (51,403) | 89,206 | 33,229 | ||||||||
Change in fair value of mortgage loans, net | 56,227 | 61,139 | 47,373 | ||||||||
Earnings (loss) from unconsolidated entities | 30,845 | 4,166 | 3,809 | ||||||||
Gain (loss) on sale of investments and other assets, net | 7,965 | 60,622 | 26,557 | ||||||||
(Loss) gain on derivative financial instruments, net | (21,269) | (7,414) | (298) | ||||||||
Foreign currency (loss) gain, net | (3) | (2) | (2) | ||||||||
Loss on extinguishment of debt | (845) | (318) | |||||||||
Other income (loss), net | 447 | 16 | (1,363) | ||||||||
Total other income | 34,224 | 205,420 | 94,614 | ||||||||
Income before income taxes | 78,574 | 294,257 | 237,471 | ||||||||
Income tax (provision) benefit | 1,011 | (8,110) | (4,688) | ||||||||
Net income | 79,585 | 286,147 | 232,783 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (13,764) | (4,786) | (5,220) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | 65,821 | 281,361 | 227,563 | ||||||||
Operating segment | Property Segment | |||||||||||
Revenues: | |||||||||||
Rental income | 255,452 | 287,094 | 292,453 | ||||||||
Other revenues | 293 | 409 | 444 | ||||||||
Total revenues | 255,745 | 287,503 | 292,897 | ||||||||
Costs and expenses: | |||||||||||
Interest expense | 65,390 | 76,838 | 75,192 | ||||||||
General and administrative | 4,542 | 6,232 | 7,113 | ||||||||
Acquisition and investment pursuit costs | 12 | 217 | (46) | ||||||||
Costs of rental operations | 97,136 | 95,370 | 99,632 | ||||||||
Depreciation and amortization | 76,246 | 92,561 | 110,684 | ||||||||
Other expense | 531 | 1,693 | (27) | ||||||||
Total costs and expenses | 243,857 | 272,911 | 292,548 | ||||||||
Other income (loss): | |||||||||||
Earnings (loss) from unconsolidated entities | (114,362) | 3,658 | |||||||||
Gain (loss) on sale of investments and other assets, net | 119,746 | 28,468 | |||||||||
(Loss) gain on derivative financial instruments, net | (34,392) | (1,284) | 22,756 | ||||||||
Foreign currency (loss) gain, net | (14) | 37 | (2) | ||||||||
Loss on extinguishment of debt | (2,185) | (4,745) | (2,661) | ||||||||
Other income (loss), net | (166) | (100) | 508 | ||||||||
Total other income | (36,757) | (708) | 52,727 | ||||||||
Income before income taxes | (24,869) | 13,884 | 53,076 | ||||||||
Income tax (provision) benefit | (393) | (7,549) | |||||||||
Net income | (24,869) | 13,491 | 45,527 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (20,394) | (21,630) | (17,623) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (45,263) | (8,139) | 27,904 | ||||||||
Corporate | |||||||||||
Revenues: | |||||||||||
Other revenues | 26 | 360 | |||||||||
Total revenues | 26 | 360 | |||||||||
Costs and expenses: | |||||||||||
Management fees | 125,372 | 117,404 | 127,133 | ||||||||
Interest expense | 113,313 | 113,964 | 124,805 | ||||||||
General and administrative | 15,312 | 13,681 | 11,747 | ||||||||
Total costs and expenses | 253,997 | 245,049 | 263,685 | ||||||||
Other income (loss): | |||||||||||
(Loss) gain on derivative financial instruments, net | 33,646 | 26,062 | (7,330) | ||||||||
Loss on extinguishment of debt | (488) | (1,466) | (2,099) | ||||||||
Other income (loss), net | (73) | ||||||||||
Total other income | 33,158 | 24,523 | (9,429) | ||||||||
Income before income taxes | (220,839) | (220,500) | (272,754) | ||||||||
Net income | (220,839) | (220,500) | (272,754) | ||||||||
Net income attributable to Starwood Property Trust, Inc. | (220,839) | (220,500) | (272,754) | ||||||||
LNR VIEs | |||||||||||
Revenues: | |||||||||||
Interest income from investment securities | (120,538) | (128,607) | (121,419) | ||||||||
Servicing fees | (12,721) | (16,089) | (25,521) | ||||||||
Other revenues | (5) | (26) | (176) | ||||||||
Total revenues | (133,264) | (144,722) | (147,116) | ||||||||
Costs and expenses: | |||||||||||
Management fees | 58 | 161 | 412 | ||||||||
Interest expense | (386) | (648) | (986) | ||||||||
General and administrative | 336 | 343 | 339 | ||||||||
Total costs and expenses | 8 | (144) | (235) | ||||||||
Other income (loss): | |||||||||||
Change in net assets related to consolidated VIEs | 78,258 | 236,309 | 165,892 | ||||||||
Change in fair value of servicing rights | (15,130) | (2,172) | 4,171 | ||||||||
Change in fair value of investment securities, net | 71,904 | (87,289) | (20,119) | ||||||||
Earnings (loss) from unconsolidated entities | (1,540) | (1,807) | (1,990) | ||||||||
Total other income | 133,492 | 145,041 | 147,954 | ||||||||
Income before income taxes | 220 | 463 | 1,073 | ||||||||
Net income | 220 | 463 | 1,073 | ||||||||
Net income attributable to Starwood Property Trust, Inc. | $ (220) | $ (463) | $ (1,073) |
Segment and Geographic Data - B
Segment and Geographic Data - Balance sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Cash and cash equivalents | $ 563,217 | $ 478,388 | ||
Restricted cash | 158,945 | 95,643 | ||
Loans held-for-investment | 11,087,073 | 10,586,074 | ||
Loans held-for-sale | 1,052,835 | 884,150 | ||
Investment securities | 736,658 | 810,238 | ||
Properties, net | 2,271,153 | 2,266,440 | ||
Intangible assets | 70,117 | 85,700 | $ 145,033 | |
Investment in unconsolidated entities | 108,054 | 84,329 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 40,555 | 28,943 | ||
Accrued interest receivable | 95,980 | 64,087 | ||
Other assets | 190,748 | 211,323 | ||
Total Assets | 80,873,509 | 78,042,336 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 206,845 | 212,006 | ||
Related-party payable | 39,170 | 40,925 | ||
Dividends payable | 137,959 | 137,427 | ||
Derivative liabilities | 41,324 | 8,740 | ||
Secured financing agreements, net | 10,146,190 | 8,906,048 | ||
Collateralized loan obligations, net | 930,554 | 928,060 | ||
Unsecured senior notes, net | 1,732,520 | 1,928,622 | ||
Total Liabilities | 76,010,933 | 72,905,322 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,921 | 2,874 | ||
Additional paid-in capital | 5,209,739 | 5,132,532 | ||
Treasury stock | (138,022) | (104,194) | ||
Accumulated other comprehensive income (loss) | 43,993 | 50,932 | 58,660 | $ 69,924 |
Retained earnings (accumulated deficit) | (629,733) | (381,719) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,488,898 | 4,700,425 | ||
Non-controlling interests in consolidated subsidiaries | 373,678 | 436,589 | ||
Total Equity | 4,862,576 | 5,137,014 | $ 4,900,189 | $ 4,579,201 |
Total Liabilities and Equity | 80,873,509 | 78,042,336 | ||
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 | 562,445 | 477,167 | ||
Restricted cash | 158,945 | 95,643 | ||
Loans held-for-investment | 11,087,073 | 10,586,074 | ||
Loans held-for-sale | 1,052,835 | 884,150 | ||
Investment securities | 2,162,228 | 2,215,275 | ||
Properties, net | 2,271,153 | 2,266,440 | ||
Intangible assets | 111,493 | 111,947 | ||
Investment in unconsolidated entities | 124,166 | 104,966 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 40,555 | 28,943 | ||
Accrued interest receivable | 96,114 | 64,893 | ||
Other assets | 190,755 | 211,330 | ||
Total Assets | 18,117,608 | 17,306,674 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 206,770 | 211,922 | ||
Related-party payable | 39,170 | 40,925 | ||
Dividends payable | 137,959 | 137,427 | ||
Derivative liabilities | 41,324 | 8,740 | ||
Secured financing agreements, net | 10,168,190 | 8,919,998 | ||
Collateralized loan obligations, net | 930,554 | 928,060 | ||
Unsecured senior notes, net | 1,732,520 | 1,928,622 | ||
Total Liabilities | 13,256,487 | 12,175,694 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,921 | 2,874 | ||
Additional paid-in capital | 5,209,739 | 5,132,532 | ||
Treasury stock | (138,022) | (104,194) | ||
Accumulated other comprehensive income (loss) | 43,993 | 50,932 | ||
Retained earnings (accumulated deficit) | (629,733) | (381,719) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,488,898 | 4,700,425 | ||
Non-controlling interests in consolidated subsidiaries | 372,223 | 430,555 | ||
Total Equity | 4,861,121 | 5,130,980 | ||
Total Liabilities and Equity | 18,117,608 | 17,306,674 | ||
Operating segment | Commercial and Residential Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 160,007 | 26,278 | ||
Restricted cash | 93,445 | 36,135 | ||
Loans held-for-investment | 9,673,625 | 9,187,332 | ||
Loans held-for-sale | 841,963 | 605,384 | ||
Investment securities | 1,014,402 | 992,974 | ||
Properties, net | 103,896 | 26,834 | ||
Investment in unconsolidated entities | 54,407 | 46,921 | ||
Derivative assets | 6,595 | 14,718 | ||
Accrued interest receivable | 87,922 | 45,996 | ||
Other assets | 61,638 | 59,170 | ||
Total Assets | 12,097,900 | 11,041,742 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 41,104 | 30,594 | ||
Derivative liabilities | 39,082 | 7,698 | ||
Secured financing agreements, net | 5,893,999 | 5,038,876 | ||
Collateralized loan obligations, net | 930,554 | 928,060 | ||
Total Liabilities | 6,904,739 | 6,005,228 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 1,192,584 | 1,522,360 | ||
Accumulated other comprehensive income (loss) | 44,057 | 50,996 | ||
Retained earnings (accumulated deficit) | 3,956,405 | 3,463,158 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 5,193,046 | 5,036,514 | ||
Non-controlling interests in consolidated subsidiaries | 115 | |||
Total Equity | 5,193,161 | 5,036,514 | ||
Total Liabilities and Equity | 12,097,900 | 11,041,742 | ||
Operating segment | Infrastructure Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 4,440 | 2,209 | ||
Restricted cash | 45,113 | 41,967 | ||
Loans held-for-investment | 1,412,440 | 1,397,448 | ||
Loans held-for-sale | 120,540 | 119,528 | ||
Investment securities | 35,681 | 45,153 | ||
Investment in unconsolidated entities | 25,095 | 25,862 | ||
Goodwill | 119,409 | 119,409 | ||
Derivative assets | 7 | |||
Accrued interest receivable | 2,091 | 3,134 | ||
Other assets | 4,531 | 6,101 | ||
Total Assets | 1,769,340 | 1,760,818 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 12,144 | 6,443 | ||
Derivative liabilities | 1,718 | 750 | ||
Secured financing agreements, net | 1,240,763 | 1,217,066 | ||
Total Liabilities | 1,254,625 | 1,224,259 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 496,387 | 529,668 | ||
Retained earnings (accumulated deficit) | 18,328 | 6,891 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 514,715 | 536,559 | ||
Total Equity | 514,715 | 536,559 | ||
Total Liabilities and Equity | 1,769,340 | 1,760,818 | ||
Operating segment | Property Segment | ||||
Assets: | ||||
Cash and cash equivalents | 32,080 | 30,123 | ||
Restricted cash | 7,192 | 7,171 | ||
Properties, net | 1,969,414 | 2,029,024 | ||
Intangible assets | 40,370 | 47,303 | ||
Derivative assets | 41 | 3 | ||
Accrued interest receivable | 133 | |||
Other assets | 69,859 | 82,910 | ||
Total Assets | 2,118,956 | 2,196,667 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 43,630 | 48,370 | ||
Secured financing agreements, net | 1,794,609 | 1,698,334 | ||
Total Liabilities | 1,838,239 | 1,746,704 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 98,882 | 208,650 | ||
Retained earnings (accumulated deficit) | (44,832) | 5,431 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 54,050 | 214,081 | ||
Non-controlling interests in consolidated subsidiaries | 226,667 | 235,882 | ||
Total Equity | 280,717 | 449,963 | ||
Total Liabilities and Equity | 2,118,956 | 2,196,667 | ||
Operating segment | Investing and Servicing Segment | ||||
Assets: | ||||
Cash and cash equivalents | 19,546 | 61,693 | ||
Restricted cash | 13,195 | 10,370 | ||
Loans held-for-investment | 1,008 | 1,294 | ||
Loans held-for-sale | 90,332 | 159,238 | ||
Investment securities | 1,112,145 | 1,177,148 | ||
Properties, net | 197,843 | 210,582 | ||
Intangible assets | 71,123 | 64,644 | ||
Investment in unconsolidated entities | 44,664 | 32,183 | ||
Goodwill | 140,437 | 140,437 | ||
Derivative assets | 147 | 7 | ||
Accrued interest receivable | 123 | 2,388 | ||
Other assets | 44,579 | 54,238 | ||
Total Assets | 1,735,142 | 1,914,222 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 45,309 | 73,021 | ||
Related-party payable | 5 | 5 | ||
Derivative liabilities | 524 | 292 | ||
Secured financing agreements, net | 606,100 | 574,507 | ||
Total Liabilities | 651,938 | 647,825 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | (322,992) | (123,210) | ||
Accumulated other comprehensive income (loss) | (64) | (64) | ||
Retained earnings (accumulated deficit) | 1,260,819 | 1,194,998 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 937,763 | 1,071,724 | ||
Non-controlling interests in consolidated subsidiaries | 145,441 | 194,673 | ||
Total Equity | 1,083,204 | 1,266,397 | ||
Total Liabilities and Equity | 1,735,142 | 1,914,222 | ||
Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 346,372 | 356,864 | ||
Derivative assets | 33,772 | 14,208 | ||
Accrued interest receivable | 5,978 | 13,242 | ||
Other assets | 10,148 | 8,911 | ||
Total Assets | 396,270 | 393,225 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 64,583 | 53,494 | ||
Related-party payable | 39,165 | 40,920 | ||
Dividends payable | 137,959 | 137,427 | ||
Secured financing agreements, net | 632,719 | 391,215 | ||
Unsecured senior notes, net | 1,732,520 | 1,928,622 | ||
Total Liabilities | 2,606,946 | 2,551,678 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,921 | 2,874 | ||
Additional paid-in capital | 3,744,878 | 2,995,064 | ||
Treasury stock | (138,022) | (104,194) | ||
Retained earnings (accumulated deficit) | (5,820,453) | (5,052,197) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | (2,210,676) | (2,158,453) | ||
Total Equity | (2,210,676) | (2,158,453) | ||
Total Liabilities and Equity | 396,270 | 393,225 | ||
LNR VIEs | ||||
Assets: | ||||
Cash and cash equivalents | 772 | 1,221 | ||
Investment securities | (1,425,570) | (1,405,037) | ||
Intangible assets | (41,376) | (26,247) | ||
Investment in unconsolidated entities | (16,112) | (20,637) | ||
Accrued interest receivable | (134) | (806) | ||
Other assets | (7) | (7) | ||
Total Assets | 62,755,901 | 60,735,662 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 75 | 84 | ||
Secured financing agreements, net | (22,000) | (13,950) | ||
Total Liabilities | 62,754,446 | 60,729,628 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Non-controlling interests in consolidated subsidiaries | 1,455 | 6,034 | ||
Total Equity | 1,455 | 6,034 | ||
Total Liabilities and Equity | 62,755,901 | 60,735,662 | ||
Primary beneficiary | ||||
Assets: | ||||
Total Assets | 64,238,328 | 62,187,175 | ||
Liabilities: | ||||
Total Liabilities | 62,776,371 | 60,743,494 | ||
Primary beneficiary | LNR VIEs | ||||
Assets: | ||||
Total Assets | 64,238,328 | 62,187,175 | ||
Liabilities: | ||||
Total Liabilities | $ 62,776,371 | $ 60,743,494 |
Segment and Geographic Data - F
Segment and Geographic Data - Foreign revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||||||||||
Revenues | $ 290,562 | $ 267,427 | $ 265,606 | $ 312,560 | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | $ 1,136,155 | $ 1,196,419 | $ 1,109,280 |
Foreign | |||||||||||
Revenues | |||||||||||
Revenues | $ 115,200 | $ 115,600 | $ 90,500 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Revenues | $ 290,562 | $ 267,427 | $ 265,606 | $ 312,560 | $ 286,428 | $ 288,330 | $ 311,181 | $ 310,480 | $ 1,136,155 | $ 1,196,419 | $ 1,109,280 |
Net (loss) income | 114,655 | 164,734 | 152,961 | (66,269) | 177,980 | 150,001 | 132,446 | 76,508 | 366,081 | 536,935 | 411,197 |
Net income attributable to Starwood Property Trust, Inc. | $ 106,968 | $ 151,834 | $ 139,656 | $ (66,769) | $ 171,869 | $ 140,396 | $ 127,016 | $ 70,383 | $ 331,689 | $ 509,664 | $ 385,830 |
Basic earnings per share: | |||||||||||
Earnings per share - Basic (in dollars per share) | $ 0.37 | $ 0.53 | $ 0.49 | $ (0.24) | $ 0.61 | $ 0.50 | $ 0.45 | $ 0.25 | $ 1.16 | $ 1.81 | $ 1.44 |
Diluted earnings per share: | |||||||||||
Earnings per share - Diluted (in dollars per share) | $ 0.37 | $ 0.52 | $ 0.49 | $ (0.24) | $ 0.60 | $ 0.49 | $ 0.45 | $ 0.25 | $ 1.16 | $ 1.79 | $ 1.42 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 25, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | |
Subsequent Events | |||||
Carrying Amount | $ 1,750,000 | $ 1,950,000 | |||
Pricing margin (as a percent) | 2.00% | ||||
Secured Borrowings | |||||
Subsequent Events | |||||
Carrying Amount | $ 10,233,589 | $ 9,000,125 | |||
Collateralized Loan Obligation | |||||
Subsequent Events | |||||
Amount issued | $ 1,100,000 | ||||
Carrying Amount | $ 86,600 | ||||
Subsequent event | Residential Repurchase Facility | One-month LIBOR | |||||
Subsequent Events | |||||
Floor interest rate (as a percent) | 0.25% | ||||
Subsequent event | Residential Repurchase Facility | One-month LIBOR | Maximum | |||||
Subsequent Events | |||||
Pricing margin (as a percent) | 2.50% | ||||
Subsequent event | Residential Repurchase Facility | Secured Borrowings | |||||
Subsequent Events | |||||
Maximum borrowing capacity | $ 375,000 | ||||
Maturity period | 1 year | ||||
Subsequent event | Residential Repurchase Facility | Secured Borrowings | One-month LIBOR | Minimum | |||||
Subsequent Events | |||||
Pricing margin (as a percent) | 2.00% | ||||
Subsequent event | Collateralized Loan Obligation | |||||
Subsequent Events | |||||
Amount issued | $ 500,000 | ||||
Principal amount of rated bonds | $ 410,000 | ||||
Subsequent event | Collateralized Loan Obligation | LIBOR | |||||
Subsequent Events | |||||
Pricing margin (as a percent) | 1.81% |
Schedule III-Real Estate and _2
Schedule III-Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule III-Residential Real Estate | ||||
Encumbrances | $ 2,038,431 | |||
Initial Cost to Company | ||||
Land | 444,566 | |||
Depreciable Property | 2,043,296 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Depreciable Property | 85,434 | |||
Gross Amounts Carried | ||||
Land | 444,595 | |||
Depreciable Property | 2,128,701 | |||
Total | 2,573,296 | $ 2,490,630 | $ 2,972,803 | $ 2,755,050 |
Accumulated Depreciation | (302,143) | $ (224,190) | $ (187,913) | $ (107,569) |
Aggregate cost for federal income tax purposes | $ 2,700,000 | |||
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 | 1,017 | |||
Gross Amounts Carried | ||||
Depreciable Property | 6,582 | |||
Total | 6,582 | |||
Accumulated Depreciation | $ (2,612) | |||
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 | 97,797 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 553 | |||
Gross Amounts Carried | ||||
Land | 2,764 | |||
Depreciable Property | 98,350 | |||
Total | 101,114 | |||
Accumulated Depreciation | $ (12,788) | |||
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 | 176,996 | |||
Gross Amounts Carried | ||||
Land | 11,283 | |||
Depreciable Property | 176,996 | |||
Total | 188,279 | |||
Accumulated Depreciation | $ (21,811) | |||
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 | 137 | |||
Gross Amounts Carried | ||||
Land | 7,930 | |||
Depreciable Property | 117,877 | |||
Total | 125,807 | |||
Accumulated Depreciation | $ (15,310) | |||
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 | 858 | |||
Gross Amounts Carried | ||||
Land | 15,921 | |||
Depreciable Property | 127,700 | |||
Total | 143,621 | |||
Accumulated Depreciation | $ (17,780) | |||
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 | 589 | |||
Gross Amounts Carried | ||||
Land | 13,415 | |||
Depreciable Property | 108,433 | |||
Total | 121,848 | |||
Accumulated Depreciation | $ (16,006) | |||
Mixed Use - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 8,667 | |||
Initial Cost to Company | ||||
Land | 1,001 | |||
Depreciable Property | 14,323 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 525 | |||
Gross Amounts Carried | ||||
Land | 1,001 | |||
Depreciable Property | 14,848 | |||
Total | 15,849 | |||
Accumulated Depreciation | $ (2,111) | |||
Multifamily - U.S., South East (60 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 60 | |||
Encumbrances | $ 1,028,902 | |||
Initial Cost to Company | ||||
Land | 251,084 | |||
Depreciable Property | 928,384 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 40,175 | |||
Gross Amounts Carried | ||||
Land | 251,113 | |||
Depreciable Property | 968,530 | |||
Total | 1,219,643 | |||
Accumulated Depreciation | $ (155,037) | |||
Office - U.S. North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 19,018 | |||
Initial Cost to Company | ||||
Land | 7,250 | |||
Depreciable Property | 10,614 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 6,783 | |||
Gross Amounts Carried | ||||
Land | 7,250 | |||
Depreciable Property | 17,397 | |||
Total | 24,647 | |||
Accumulated Depreciation | $ (2,702) | |||
Office - U.S., South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 24,873 | |||
Initial Cost to Company | ||||
Land | 4,879 | |||
Depreciable Property | 16,862 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 2,699 | |||
Gross Amounts Carried | ||||
Land | 4,879 | |||
Depreciable Property | 19,561 | |||
Total | 24,440 | |||
Accumulated Depreciation | $ (5,565) | |||
Office - U.S., South West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 31,622 | |||
Initial Cost to Company | ||||
Land | 8,188 | |||
Depreciable Property | 28,019 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 5,673 | |||
Gross Amounts Carried | ||||
Land | 8,188 | |||
Depreciable Property | 33,692 | |||
Total | 41,880 | |||
Accumulated Depreciation | $ (4,125) | |||
Office - U.S., West | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Initial Cost to Company | ||||
Depreciable Property | $ 4,261 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 8,228 | |||
Gross Amounts Carried | ||||
Depreciable Property | 12,489 | |||
Total | 12,489 | |||
Accumulated Depreciation | $ (2,702) | |||
Retail - U.S., Mid Atlantic | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 18,000 | |||
Initial Cost to Company | ||||
Land | 6,432 | |||
Depreciable Property | 6,315 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 12,580 | |||
Gross Amounts Carried | ||||
Land | 6,432 | |||
Depreciable Property | 18,895 | |||
Total | 25,327 | |||
Accumulated Depreciation | $ (2,975) | |||
Retail - U.S., Midwest (8 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 | $ (13,531) | |||
Retail - U.S., North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 11,567 | |||
Initial Cost to Company | ||||
Land | 472 | |||
Depreciable Property | 12,260 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 625 | |||
Gross Amounts Carried | ||||
Land | 472 | |||
Depreciable Property | 12,885 | |||
Total | 13,357 | |||
Accumulated Depreciation | $ (2,346) | |||
Retail - U.S., South East (7 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 5 | |||
Encumbrances | $ 42,469 | |||
Initial Cost to Company | ||||
Land | 21,353 | |||
Depreciable Property | 60,618 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 53 | |||
Gross Amounts Carried | ||||
Land | 21,353 | |||
Depreciable Property | 60,671 | |||
Total | 82,024 | |||
Accumulated Depreciation | $ (6,221) | |||
Retail - U.S., South West (6 properties) | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 76,513 | |||
Initial Cost to Company | ||||
Land | 37,254 | |||
Depreciable Property | 78,579 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 96 | |||
Gross Amounts Carried | ||||
Land | 37,254 | |||
Depreciable Property | 78,675 | |||
Total | 115,929 | |||
Accumulated Depreciation | $ (10,654) | |||
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 | $ (4,144) | |||
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 | 239 | |||
Gross Amounts Carried | ||||
Land | 2,202 | |||
Depreciable Property | 11,737 | |||
Total | 13,939 | |||
Accumulated Depreciation | $ (1,707) | |||
Industrial - U.S. South East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 50,000 | |||
Initial Cost to Company | ||||
Land | 10,121 | |||
Depreciable Property | 17,295 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Depreciable Property | 3,250 | |||
Gross Amounts Carried | ||||
Land | 10,121 | |||
Depreciable Property | 20,545 | |||
Total | 30,666 | |||
Accumulated Depreciation | $ (2,016) | |||
Residential - US North East | ||||
Schedule III-Residential Real Estate | ||||
Number of properties | property | 1 | |||
Initial Cost to Company | ||||
Depreciable Property | $ 75,245 | |||
Gross Amounts Carried | ||||
Depreciable Property | 75,245 | |||
Total | $ 75,245 |
Schedule III-Real Estate and _3
Schedule III-Real Estate and Accumulated Depreciation - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate activity | |||
Beginning balance | $ 2,490,630 | $ 2,972,803 | $ 2,755,050 |
Additions during the year: | |||
Acquisitions (1) | 8,472 | 445,170 | |
Acquisitions through foreclosure | 75,245 | 27,416 | |
Improvements | 25,164 | 30,865 | 25,764 |
Contingent consideration issued | 1,576 | 2,877 | 38,211 |
Total additions | 101,985 | 69,630 | 509,145 |
Deductions during the year: | |||
Costs of real estate sold | (19,319) | (535,417) | (269,989) |
Foreign currency translation | (15,702) | (21,260) | |
Other | (684) | (143) | |
Total deductions | (19,319) | (551,803) | (291,392) |
Ending balance | 2,573,296 | 2,490,630 | 2,972,803 |
Accumulated depreciation activity | |||
Beginning balance | 224,190 | 187,913 | 107,569 |
Depreciation expense | 81,610 | 92,024 | 91,188 |
Disposition/write-offs | (3,657) | (54,260) | (9,389) |
Foreign currency translation | (1,487) | (1,455) | |
Ending balance | $ 302,143 | $ 224,190 | $ 187,913 |
Schedule IV-Mortgage Loans on_2
Schedule IV-Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Mortgage Loans on Real Estate | ||||
Face Amount | $ 12,262,840 | $ 11,530,915 | ||
Carrying Amount | $ 12,139,908 | 11,470,224 | $ 9,794,254 | $ 7,382,641 |
Weighted average spread of loans (as a percent) | 4.20% | |||
Principal Amount of Delinquent Loans | $ 245,773 | |||
Aggregate cost for federal income tax purposes | 10,700,000 | |||
Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Loan loss allowance | (61,855) | |||
Prepaid Loan Costs, Net | 2,741 | |||
Mixed Use, Birmingham, United Kingdom | Individually Significant First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Face Amount | 341,688 | |||
Carrying Amount | $ 338,426 | |||
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% | |||
Hotel, International, Floating (3 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 63,889 | |||
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 (4 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 36,214 | |||
Number of loans | loan | 4 | |||
Hotel, International, Floating (4 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 (4 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 | $ 111,442 | |||
Number of loans | loan | 5 | |||
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 | $ 333,438 | |||
Number of loans | loan | 5 | |||
Hotel, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Hotel, 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% | |||
Hotel, South East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 61,836 | |||
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 | $ 83,424 | |||
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 | $ 173,995 | |||
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, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 45,668 | |||
Weighted Average Coupon (as a percent) | 10.50% | |||
Number of loans | loan | 2 | |||
Hotel, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 410,530 | |||
Number of loans | loan | 7 | |||
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 | $ 422,293 | |||
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, International, Floating (3 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 78,438 | |||
Number of loans | loan | 3 | |||
Industrial, International, Floating (3 mortgages) | Aggregated First Mortgages | Three-month EURIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Industrial, International, Floating (3 mortgages) | Aggregated First Mortgages | Three-month EURIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.65% | |||
Industrial, International, Floating (2 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 47,904 | |||
Number of loans | loan | 2 | |||
Industrial, International, Floating (2 mortgages) | Aggregated First Mortgages | 3 Month GBP LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.15% | |||
Industrial, International, Floating (2 mortgages) | Aggregated First Mortgages | 3 Month GBP LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.65% | |||
Industrial, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 36,097 | |||
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 | $ 2,668 | |||
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 | $ 16,029 | |||
Number of loans | loan | 1 | |||
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) | 10.15% | |||
Industrial, Various, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 129,212 | |||
Number of loans | loan | 4 | |||
Industrial, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.25% | |||
Industrial, Various, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.25% | |||
Mixed Use, International, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 41,671 | |||
Number of loans | loan | 2 | |||
Mixed Use, International, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 8.50% | |||
Mixed Use, International, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 10.00% | |||
Mixed Use, International, Floating (1 mortgage) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 177,535 | |||
Number of loans | loan | 1 | |||
Mixed Use, International, Floating (1 mortgage) | 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 (1 mortgage) | Aggregated First Mortgages | 3 Month GBP LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.15% | |||
Mixed Use, International, Floating (1 mortgage) | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 39,865 | |||
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, International, Floating (2 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 111,444 | |||
Number of loans | loan | 2 | |||
Mixed Use, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 41,250 | |||
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 West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 291,401 | |||
Number of loans | loan | 13 | |||
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 | $ 96,141 | |||
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 South East Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 36,581 | |||
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% | |||
Multi-family, International, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 113,650 | |||
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 | $ 1,008 | |||
Weighted Average Coupon (as a percent) | 6.28% | |||
Number of loans | loan | 1 | |||
Multi-family, International, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 546,878 | |||
Number of loans | loan | 5 | |||
Multi-family, International, Floating | Aggregated First Mortgages | 3 Month GBP LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 2.66% | |||
Multi-family, International, Floating | Aggregated First Mortgages | 3 Month GBP LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.50% | |||
Multi-Family, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 91,972 | |||
Number of loans | loan | 4 | |||
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 | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 32,934 | |||
Number of loans | loan | 1 | |||
Multi-Family, Mid Atlantic, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.75% | |||
Multi-Family, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 266,397 | |||
Number of loans | loan | 8 | |||
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 | $ 122,636 | |||
Number of loans | loan | 4 | |||
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) | 4.50% | |||
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% | |||
Multi-family, South East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 39,601 | |||
Number of loans | loan | 1 | |||
Multi-family, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.25% | |||
Multifamily, South West Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 159,992 | |||
Number of loans | loan | 13 | |||
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 | $ 101,473 | |||
Number of loans | loan | 3 | |||
Multi-Family, West, Floating | Aggregated First Mortgages | 1-month LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.75% | |||
Office , International , Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 247,151 | |||
Weighted Average Coupon (as a percent) | 5.35% | |||
Number of loans | loan | 1 | |||
Office, International, Floating (4 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 389,472 | |||
Number of loans | loan | 4 | |||
Office, International, Floating (4 mortgages) | 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 (4 mortgages) | Aggregated First Mortgages | 3 Month GBP LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 4.25% | |||
Office, International, Floating (4 mortgages) | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 68,298 | |||
Number of loans | loan | 4 | |||
Office, International, Floating (4 mortgages) | Aggregated Subordinated and Mezzanine Loans | Three-month EURIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.00% | |||
Office, International, Floating (4 mortgages) | Aggregated Subordinated and Mezzanine Loans | Three-month EURIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 8.95% | |||
Office, International, Floating (2 mortgages) | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 84,497 | |||
Number of loans | loan | 2 | |||
Office, International, Floating (2 mortgages) | 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 (2 mortgages) | Aggregated First Mortgages | One-month EURIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 7.80% | |||
Office, Mid Atlantic, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 659,581 | |||
Number of loans | loan | 26 | |||
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 | $ 136,479 | |||
Number of loans | loan | 7 | |||
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 | $ 608,148 | |||
Number of loans | loan | 16 | |||
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 | One-month EURIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 12.00% | |||
Office, South East, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 52,006 | |||
Number of loans | loan | 2 | |||
Office, South East, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 5.00% | |||
Office, South East, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 12.00% | |||
Office , South East , Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 46,391 | |||
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 | $ 280,297 | |||
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, North East, Fixed | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 35,022 | |||
Weighted Average Coupon (as a percent) | 8.72% | |||
Number of loans | loan | 2 | |||
Office, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 908,109 | |||
Number of loans | loan | 41 | |||
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) | 7.00% | |||
Office, West, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 85,129 | |||
Number of loans | loan | 4 | |||
Office, West, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 6.24% | |||
Office, West, Floating | Aggregated Subordinated and Mezzanine Loans | 1-month LIBOR | Maximum | ||||
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 | $ 59,927 | |||
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, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 32,539 | |||
Number of loans | loan | 4 | |||
Other, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.75% | |||
Other, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 10.63% | |||
Other, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 40,158 | |||
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 | $ 62,638 | |||
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 | $ 60,781 | |||
Number of loans | loan | 8 | |||
Other, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.75% | |||
Other, West, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.25% | |||
Other, West, Floating | Aggregated Subordinated and Mezzanine Loans | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 60,807 | |||
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% | |||
Residential, International, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 5,700 | |||
Number of loans | loan | 1 | |||
Residential, International, Floating | Aggregated First Mortgages | 3 Month GBP LIBOR | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 13.00% | |||
Residential, North East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 602,945 | |||
Principal Amount of Delinquent Loans | $ 30,874 | |||
Number of loans | loan | 10 | |||
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, South East, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 57,467 | |||
Number of loans | loan | 3 | |||
Residential, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.10% | |||
Residential, South East, Floating | Aggregated First Mortgages | 1-month LIBOR | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 9.12% | |||
Residential, West, Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 16,727 | |||
Number of loans | loan | 2 | |||
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% | |||
Residential, Various, Fixed | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 90,684 | |||
Principal Amount of Delinquent Loans | $ 8,946 | |||
Number of loans | loan | 177 | |||
Residential, Various, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 3.38% | |||
Residential, Various, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 9.00% | |||
Retail , Midwest ,Floating | Aggregated First Mortgages | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 40,749 | |||
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 | $ 184,135 | |||
Principal Amount of Delinquent Loans | $ 184,135 | |||
Number of loans | loan | 1 | |||
Retail, North East, Floating | Aggregated First Mortgages | 1-month LIBOR | Minimum | ||||
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 | $ 25,625 | |||
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 | $ 366 | |||
Weighted Average Coupon (as a percent) | 7.26% | |||
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 | $ 932,295 | |||
Principal Amount of Delinquent Loans | $ 9,841 | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Minimum | ||||
Mortgage Loans on Real Estate | ||||
Weighted average spread of loans (as a percent) | 3.25% | |||
Loans Held-for-Sale, Various, Fixed | Aggregated First Mortgages | Maximum | ||||
Mortgage Loans on Real Estate | ||||
Weighted Average Coupon (as a percent) | 9.50% | |||
Commercial and Residential Lending Segment and Investing and Servicing Segment | ||||
Mortgage Loans on Real Estate | ||||
Carrying Amount | $ 10,584,400 | $ 9,890,693 | $ 7,806,699 | $ 7,357,034 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | $ 11,470,224 | $ 9,794,254 | $ 7,382,641 |
Acquisitions/origination/additional funding | 5,337,399 | 9,094,714 | 6,723,144 |
Capitalized Interest | 144,013 | 110,632 | 63,047 |
Basis of loans sold | (3,307,003) | (4,311,390) | (3,082,347) |
Loan maturities/principal repayments | (1,821,196) | (3,304,838) | (3,272,666) |
Discount accretion/premium amortization | 42,199 | 35,387 | 38,099 |
Changes in fair value | 133,124 | 71,601 | 40,522 |
Unrealized foreign currency translation (loss) gain | 102,553 | 40,155 | (32,341) |
Credit loss provision, net | (46,091) | (7,126) | (34,821) |
Transfer to/from other asset classifications | 105,126 | (25,862) | (364) |
Balance at the end of the period | 12,139,908 | 11,470,224 | 9,794,254 |
Commercial and Residential Lending Segment and Investing and Servicing Segment | |||
Mortgage Loans on Real Estate | |||
Balance at the beginning of the period | 9,890,693 | 7,806,699 | 7,357,034 |
Acquisitions/origination/additional funding | 5,058,705 | 8,174,321 | 6,543,873 |
Capitalized Interest | 143,023 | 109,978 | 62,445 |
Basis of loans sold | (3,246,515) | (3,921,171) | (3,082,347) |
Loan maturities/principal repayments | (1,590,379) | (2,387,843) | (3,086,107) |
Discount accretion/premium amortization | 38,942 | 29,775 | 37,408 |
Changes in fair value | 133,124 | 71,601 | 40,522 |
Unrealized foreign currency translation (loss) gain | 102,748 | 38,050 | (26,645) |
Credit loss provision, net | (40,955) | (2,616) | (34,821) |
Loan foreclosures | (71,488) | (27,303) | |
Transfer to/from other asset classifications | 176,614 | (798) | (4,663) |
Balance at the end of the period | 10,584,400 | $ 9,890,693 | $ 7,806,699 |
ASU 2016-13 | |||
Mortgage Loans on Real Estate | |||
Loan maturities/principal repayments | (20,440) | ||
ASU 2016-13 | Commercial and Residential Lending Segment and Investing and Servicing Segment | |||
Mortgage Loans on Real Estate | |||
Loan maturities/principal repayments | $ (10,112) |