Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-34436 | |
Entity Registrant Name | Starwood Property Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-0247747 | |
Entity Address, Address Line One | 591 West Putnam Avenue | |
Entity Address, City or Town | Greenwich | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06830 | |
City Area Code | 203 | |
Local Phone Number | 422-7700 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | STWD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 286,985,112 | |
Entity Central Index Key | 0001465128 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 351,190 | $ 563,217 |
Restricted cash | 118,724 | 158,945 |
Loans held-for-investment, net of credit loss allowances of $72,284 and $77,444 ($150,712 and $90,684 held at fair value) | 12,321,493 | 11,087,073 |
Loans held-for-sale ($613,061 and $932,295 held at fair value) | 844,631 | 1,052,835 |
Investment securities, net of credit loss allowances of $5,387 and $5,675 ($190,212 and $198,053 held at fair value) | 678,287 | 736,658 |
Properties, net | 2,244,748 | 2,271,153 |
Intangible assets ($12,406 and $13,202 held at fair value) | 66,772 | 70,117 |
Investment in unconsolidated entities | 100,907 | 108,054 |
Goodwill | 259,846 | 259,846 |
Derivative assets | 38,029 | 40,555 |
Accrued interest receivable | 101,713 | 95,980 |
Other assets | 208,873 | 190,748 |
Total Assets | 79,702,323 | 80,873,509 |
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 178,215 | 206,845 |
Related-party payable | 36,135 | 39,170 |
Dividends payable | 138,906 | 137,959 |
Derivative liabilities | 34,805 | 41,324 |
Secured financing agreements, net | 10,895,932 | 10,146,190 |
Collateralized loan obligations, net | 931,178 | 930,554 |
Unsecured senior notes, net | 1,735,658 | 1,732,520 |
Total Liabilities | 74,847,538 | 76,010,933 |
Commitments and contingencies (Note 21) | ||
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, 294,300,251 issued and 286,851,560 outstanding as of March 31, 2021 and 292,091,601 issued and 284,642,910 outstanding as of December 31, 2020 | 2,943 | 2,921 |
Additional paid-in capital | 5,225,037 | 5,209,739 |
Treasury stock (7,448,691 shares) | (138,022) | (138,022) |
Accumulated other comprehensive income | 41,654 | 43,993 |
Accumulated deficit | (654,750) | (629,733) |
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,476,862 | 4,488,898 |
Non-controlling interests in consolidated subsidiaries | 377,923 | 373,678 |
Total Equity | 4,854,785 | 4,862,576 |
Total Liabilities and Equity | 79,702,323 | 80,873,509 |
Primary beneficiary | ||
Assets: | ||
Total Assets | 62,367,110 | 64,238,328 |
Liabilities: | ||
Total Liabilities | $ 60,896,709 | $ 62,776,371 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Loans held-for-investment, net, credit loss allowances | $ 72,284 | $ 77,444 |
Loans held-for-investment, net, held at fair value | 150,712 | 90,684 |
Loans-held-for-sale, held at fair value | 613,061 | 932,295 |
Investment securities, net, credit loss allowances | 5,387 | 5,675 |
Investment securities held at fair value | 190,212 | 198,053 |
Intangible assets held at fair value | $ 12,406 | $ 13,202 |
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 | 294,300,251 | 292,091,601 |
Common stock, shares outstanding | 286,851,560 | 284,642,910 |
Treasury stock, shares | 7,448,691 | 7,448,691 |
Total Assets | $ 79,702,323 | $ 80,873,509 |
Total Liabilities | 74,847,538 | 76,010,933 |
Total loans held-for-investment | ||
Loans held-for-investment, net, credit loss allowances | 72,284 | 77,444 |
Collateralized Loan Obligation | ||
Total Assets | 1,100,000 | 1,100,000 |
Total Liabilities | $ 900,000 | $ 900,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Interest income from loans | $ 190,575 | $ 217,427 |
Interest income from investment securities | 11,610 | 15,240 |
Servicing fees | 8,402 | 4,793 |
Rental income | 76,338 | 74,146 |
Other revenues | 305 | 954 |
Total revenues | 287,230 | 312,560 |
Costs and expenses: | ||
Management fees | 38,736 | 40,728 |
Interest expense | 103,374 | 120,025 |
General and administrative | 38,636 | 38,702 |
Acquisition and investment pursuit costs | 185 | 909 |
Costs of rental operations | 28,745 | 28,214 |
Depreciation and amortization | 22,474 | 23,980 |
Credit loss provision, net | 44 | 48,669 |
Other expense | 685 | 388 |
Total costs and expenses | 232,879 | 301,615 |
Other income (loss): | ||
Change in net assets related to consolidated VIEs | 39,745 | (45,493) |
Change in fair value of servicing rights | (796) | (393) |
Change in fair value of investment securities, net | (306) | 2,504 |
Change in fair value of mortgage loans, net | (9,478) | (16,134) |
Earnings from unconsolidated entities | 1,734 | 97 |
Gain on sale of investments and other assets, net | 17,693 | 296 |
Gain on derivative financial instruments | 33,989 | 9,710 |
Foreign currency loss, net | (11,681) | (34,486) |
Loss on extinguishment of debt | (516) | (170) |
Other income, net | 21 | 126 |
Total other income (loss) | 70,405 | (83,943) |
Income (loss) before income taxes | 124,756 | (72,998) |
Income tax (provision) benefit | (2,230) | 6,729 |
Net income (loss) | 122,526 | (66,269) |
Net income attributable to non-controlling interests | (11,148) | (500) |
Net income (loss) attributable to Starwood Property Trust, Inc. | $ 111,378 | $ (66,769) |
Earnings (loss) per share data attributable to Starwood Property Trust, Inc.: | ||
Basic (in dollars per share) | $ 0.39 | $ (0.24) |
Diluted (in dollars per share) | $ 0.38 | $ (0.24) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Comprehensive Income | ||
Net income (loss) | $ 122,526 | $ (66,269) |
Other comprehensive income (loss) (net change by component): | ||
Available-for-sale securities | (2,403) | (15,048) |
Foreign currency translation | 64 | |
Other comprehensive loss | (2,339) | (15,048) |
Comprehensive income (loss) | 120,187 | (81,317) |
Less: Comprehensive income attributable to non-controlling interests | (11,148) | (500) |
Comprehensive income (loss) attributable to Starwood Property Trust, Inc. | $ 109,039 | $ (81,817) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity $ in Thousands | Total Starwood Property Trust, Inc. Stockholders' EquityCumulative Effect, Period of Adoption, AdjustmentUSD ($) | Total Starwood Property Trust, Inc. Stockholders' EquityUSD ($) | Common stockUSD ($)shares | Additional Paid-In CapitalCumulative Effect, Period of Adoption, AdjustmentUSD ($) | Additional Paid-In CapitalUSD ($) | Treasury StockUSD ($)shares | Accumulated DeficitCumulative Effect, Period of Adoption, AdjustmentUSD ($) | Accumulated DeficitUSD ($) | Accumulated Other Comprehensive IncomeUSD ($) | Non-Controlling InterestsUSD ($) | Cumulative Effect, Period of Adoption, AdjustmentUSD ($) | USD ($)shares |
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 | shares | 287,380,891 | 5,180,140 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Proceeds from DRIP Plan | 153 | 153 | 153 | |||||||||
Proceeds from DRIP Plan (in shares) | shares | 7,718 | |||||||||||
Redemption of Class A Units | 8,538 | $ 4 | 8,534 | (8,538) | ||||||||
Redemption of Class A Units (in shares) | 409,712 | |||||||||||
Equity offering costs | (14) | (14) | (14) | |||||||||
Common stock repurchased | (28,830) | $ (28,830) | (28,830) | |||||||||
Common stock repurchased (in shares) | shares | 1,925,421 | |||||||||||
Share-based compensation | 8,800 | $ 12 | 8,788 | 8,800 | ||||||||
Share-based compensation (in shares) | shares | 1,195,208 | |||||||||||
Manager fees paid in stock | 9,080 | $ 4 | 9,076 | 9,080 | ||||||||
Manager fee paid in stock (in shares) | shares | 355,910 | |||||||||||
Net income (loss) | (66,769) | (66,769) | 500 | (66,269) | ||||||||
Dividends declared | (135,991) | (135,991) | (135,991) | |||||||||
Other comprehensive loss, net | (15,048) | (15,048) | (15,048) | |||||||||
VIE non-controlling interests | (2,188) | (2,188) | ||||||||||
Contributions from non-controlling interests | 9,406 | 9,406 | ||||||||||
Distributions to non-controlling interests | (66,476) | (66,476) | ||||||||||
Balance at Mar. 31, 2020 | 4,448,058 | $ 2,894 | 5,159,069 | $ (133,024) | (616,765) | 35,884 | 369,293 | 4,817,351 | ||||
Balance (in shares) at Mar. 31, 2020 | shares | 289,349,439 | 7,105,561 | ||||||||||
Balance at Dec. 31, 2020 | $ (1,536) | 4,488,898 | $ 2,921 | $ (3,755) | 5,209,739 | $ (138,022) | $ 2,219 | (629,733) | 43,993 | 373,678 | $ (1,536) | $ 4,862,576 |
Balance (in shares) at Dec. 31, 2020 | shares | 292,091,601 | 7,448,691 | 292,091,601 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Proceeds from DRIP Plan | 262 | 262 | $ 262 | |||||||||
Proceeds from DRIP Plan (in shares) | shares | 12,234 | |||||||||||
Redemption of Class A Units | 1,039 | $ 1 | 1,038 | (1,039) | ||||||||
Redemption of Class A Units (in shares) | 50,000 | |||||||||||
Equity offering costs | (22) | (22) | (22) | |||||||||
Share-based compensation | 10,310 | $ 18 | 10,292 | 10,310 | ||||||||
Share-based compensation (in shares) | shares | 1,814,414 | |||||||||||
Manager fees paid in stock | 7,486 | $ 3 | 7,483 | 7,486 | ||||||||
Manager fee paid in stock (in shares) | shares | 332,002 | |||||||||||
Net income (loss) | 111,378 | 111,378 | 11,148 | 122,526 | ||||||||
Dividends declared | (138,614) | (138,614) | (138,614) | |||||||||
Other comprehensive loss, net | (2,339) | (2,339) | (2,339) | |||||||||
Contributions from non-controlling interests | 2,969 | 2,969 | ||||||||||
Distributions to non-controlling interests | (8,833) | (8,833) | ||||||||||
Balance at Mar. 31, 2021 | $ 4,476,862 | $ 2,943 | $ 5,225,037 | $ (138,022) | $ (654,750) | $ 41,654 | $ 377,923 | $ 4,854,785 | ||||
Balance (in shares) at Mar. 31, 2021 | shares | 294,300,251 | 7,448,691 | 294,300,251 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidated Statements of Equity | ||
Dividends declared per common share | $ 0.48 | $ 0.48 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 122,526 | $ (66,269) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of deferred financing costs, premiums and discounts on secured borrowings | 10,515 | 9,634 |
Amortization of discounts and deferred financing costs on unsecured senior notes | 1,726 | 1,962 |
Accretion of net discount on investment securities | (3,476) | (2,783) |
Accretion of net deferred loan fees and discounts | (16,745) | (12,080) |
Share-based compensation | 10,310 | 8,800 |
Manager fees paid in stock | 7,486 | 9,080 |
Change in fair value of investment securities | 306 | (2,504) |
Change in fair value of consolidated VIEs | (7,042) | 80,683 |
Change in fair value of servicing rights | 796 | 393 |
Change in fair value of loans | 9,478 | 16,134 |
Change in fair value of derivatives | (34,768) | (7,617) |
Foreign currency loss, net | 11,681 | 34,486 |
Gain on sale of investments and other assets | (17,693) | (296) |
Credit loss provision, net | 44 | 48,669 |
Depreciation and amortization | 22,528 | 23,864 |
Earnings from unconsolidated entities | (1,734) | (97) |
Distributions of earnings from unconsolidated entities | 17 | 27 |
Loss on extinguishment of debt | 516 | 170 |
Origination and purchase of loans held-for-sale, net of principal collections | (327,352) | (621,832) |
Proceeds from sale of loans held-for-sale | 571,927 | 751,140 |
Changes in operating assets and liabilities: | ||
Related-party payable, net | (3,035) | (1,659) |
Accrued and capitalized interest receivable, less purchased interest | (41,833) | (31,465) |
Other assets | (19,467) | (40,944) |
Accounts payable, accrued expenses and other liabilities | (25,945) | (6,764) |
Net cash provided by operating activities | 270,766 | 190,732 |
Cash Flows from Investing Activities: | ||
Origination and purchase of loans held-for-investment | (2,296,124) | (1,252,745) |
Proceeds from principal collections on loans | 1,051,695 | 812,187 |
Proceeds from loans sold | 39,019 | |
Purchase and funding of investment securities | (5,729) | |
Proceeds from sales of investment securities | 7,940 | |
Proceeds from principal collections on investment securities | 59,514 | 13,559 |
Proceeds from sales of real estate | 30,566 | |
Purchases and additions to properties and other assets | (3,512) | (7,056) |
Investment in unconsolidated entities | (3,100) | |
Distribution of capital from unconsolidated entities | 15,980 | 153 |
Payments for purchase or termination of derivatives | (851) | (67,323) |
Proceeds from termination of derivatives | 23,527 | 8,912 |
Net cash used in investing activities | (1,119,205) | (454,183) |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings | 2,748,317 | 2,756,915 |
Principal repayments on and repurchases of borrowings | (2,001,336) | (1,923,754) |
Payment of deferred financing costs | (5,052) | (3,577) |
Proceeds from common stock issuances | 262 | 153 |
Payment of equity offering costs | (22) | (14) |
Payment of dividends | (137,667) | (135,889) |
Contributions from non-controlling interests | 2,969 | 9,406 |
Distributions to non-controlling interests | (8,833) | (66,476) |
Purchase of treasury stock | (28,830) | |
Issuance of debt of consolidated VIEs | 11,604 | 24,376 |
Repayment of debt of consolidated VIEs | (27,490) | (36,953) |
Distributions of cash from consolidated VIEs | 14,481 | 24,723 |
Net cash provided by financing activities | 597,233 | 620,080 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (251,206) | 356,629 |
Cash, cash equivalents and restricted cash, beginning of year | 722,162 | 574,031 |
Effect of exchange rate changes on cash | (1,042) | 733 |
Cash, cash equivalents and restricted cash, end of year | 469,914 | 931,393 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 80,624 | 109,341 |
Income taxes paid | 425 | 569 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividends declared, but not yet paid | 139,113 | 135,994 |
Consolidation of VIEs (VIE asset/liability additions) | 393,373 | 2,477,422 |
Reclassification of loans held-for-investment to loans held-for-sale | 166,901 | 422,691 |
Reclassification of loans held-for-sale to loans held-for-investment | 124,935 | |
Loan principal collections temporarily held at master servicer | 7,320 | |
Net assets acquired through conversion to equity interest | 31,965 | 9,779 |
Redemption of Class A Units for common stock | $ 1,039 | $ 8,538 |
Business and Organization
Business and Organization | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 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 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 | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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 22 for a presentation of our business segments without consolidation of these VIEs. Basis of Accounting and Principles of Consolidation The accompanying condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (our “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the operating results for the full year. Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, (iii) became significant since December 31, 2020 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). 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 condensed consolidated statements of operations. The residual difference shown on our condensed 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 condensed 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 1% of our consolidated securitization VIE assets, with the remaining 99 % 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 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. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. Fair Value Measurements We measure our mortgage-backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 19 for further discussion regarding our fair value measurements. 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 the loans are credit deteriorated or 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. 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 condensed 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 our 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 condensed 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 4 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. Convertible Senior Notes Effective January 1, 2021, the Company early adopted 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), 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, our convertible senior notes (the “Convertible Notes”), which were previously accounted for as having separate liability and equity components, are now accounted for as a single liability measured at amortized cost. The standard was adopted using the modified restrospective method of transition, which resulted in a cumulative decrease to additional paid-in capital of $3.7 million, partially offset by a cumulative decrease to accumulated deficit of $2.2 million as of January 1, 2021. 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. 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. 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 restricted stock (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our Convertible Notes (see Notes 10 and 17) and (iv) non-controlling interests that are redeemable with our common stock (see Note 16). 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 16). 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 three months ended March 31, 2021 and 2020, the two-class method resulted in the most dilutive EPS calculation. 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 March 31, 2021. 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 March 31, 2021 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 Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting, Reference Rate Reform (Topic 848) – Scope, |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2021 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | 3. Acquisitions and Divestitures During the three months ended March 31, 2021, we sold an operating property within the Commercial and Residential Lending Segment relating to a grocery distribution facility located in Montgomery, Alabama that was previously acquired in March 2019 through foreclosure of a loan with a carrying value of $9.0 million ($20.9 million unpaid principal balance net of an $8.3 million allowance and $3.6 million of unamortized discount) at the foreclosure date. The operating property was sold for $30.6 million and we recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. During the three months ended March 31, 2021 and 2020, we had no significant acquisitions of properties or businesses. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2021 | |
Loans | |
Loans | 4. Loans Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option for either. The following tables summarize our investments in mortgages and loans as of March 31, 2021 and December 31, 2020 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) March 31, 2021 Value Amount Coupon (1) (years)(2) Loans held-for-investment: Commercial loans: First mortgages (3), (8) $ 9,955,674 $ 10,003,057 5.1 % 1.7 Subordinated mortgages (4) 70,457 71,428 8.8 % 2.5 Mezzanine loans (3) 603,119 601,080 10.1 % 1.4 Other 18,200 20,267 8.2 % 2.6 Total commercial loans 10,647,450 10,695,832 Infrastructure first priority loans (5) 1,595,615 1,616,716 4.3 % 4.1 Residential loans, fair value option (6) 150,712 149,404 6.2 % N/A (7) Total loans held-for-investment 12,393,777 12,461,952 Loans held-for-sale: Residential, fair value option (6) 444,835 435,025 5.7 % N/A (7) Commercial, $168,226 under fair value option (8) 310,428 314,917 4.3 % 5.7 Infrastructure, lower of cost or fair value (5) 89,368 89,601 2.9 % 2.6 Total loans held-for-sale 844,631 839,543 Total gross loans 13,238,408 $ 13,301,495 Credit loss allowances: Commercial loans held-for-investment (63,477) Infrastructure loans held-for-investment (8,807) Total allowances (72,284) Total net loans $ 13,166,124 December 31, 2020 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 1,420,273 1,439,940 4.4 % 4.3 Residential loans, fair value option 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 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 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 (1) Calculated using LIBOR or other applicable index rates as of March 31, 2021 and December 31, 2020 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 $917.8 million and $877.3 million being classified as first mortgages as of March 31, 2021 and December 31, 2020, 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 three months ended March 31, 2021, $30.7 million of infrastructure loans held-for-sale were reclassified into loans held-for-investment. (6) During the three months ended March 31, 2021, a net amount of $69.5 million of residential loans held-for-sale were reclassified into loans held-for-investment. (7) Residential loans have a weighted average remaining contractual life of 28.9 years and 27.9 years as of March 31, 2021 and December 31, 2020, respectively. (8) During the three months ended March 31, 2021, $142.2 million of commercial loans held-for-investment were reclassified into loans held-for-sale. As of March 31, 2021, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average March 31, 2021 Value Spread Above Index Commercial loans $ 9,969,387 4.3 % Infrastructure loans 1,595,615 3.8 % Total variable rate loans held-for-investment $ 11,565,002 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 March 31, 2021 (dollars in thousands): Term Loans Revolving Loans Total Credit Amortized Cost Basis by Origination Year Amortized Cost Amortized Loss As of March 31, 2021 2021 2020 2019 2018 2017 Prior Total Cost Basis Allowance Commercial loans: Credit quality indicator: LTV < 60% $ 1,152,309 $ 709,735 $ 1,314,912 $ 1,225,605 $ 729,227 $ 425,570 $ — $ 5,557,358 $ 7,015 LTV 60% - 70% 859,035 480,542 1,530,002 825,212 39,916 82,088 — 3,816,795 31,535 LTV > 70% — 240,217 599,518 312,972 — 61,426 — 1,214,133 16,661 Credit deteriorated — — — 28,986 — 11,977 — 40,963 8,266 Defeased and other — — — — — 18,201 — 18,201 — Total commercial $ 2,011,344 $ 1,430,494 $ 3,444,432 $ 2,392,775 $ 769,143 $ 599,262 $ — $ 10,647,450 $ 63,477 Infrastructure loans: Credit quality indicator: Power $ — $ 77,525 $ 220,901 $ 397,619 $ 124,959 $ 371,072 $ 10,057 $ 1,202,133 $ 5,074 Oil and gas — 19,902 267,727 100,803 — — 5,050 393,482 3,733 Total infrastructure $ — $ 97,427 $ 488,628 $ 498,422 $ 124,959 $ 371,072 $ 15,107 $ 1,595,615 $ 8,807 Residential loans held-for-investment, fair value option 150,712 — Loans held-for-sale 844,631 — Total gross loans $ 13,238,408 $ 72,284 As of March 31, 2021, we had credit deteriorated commercial loans with an amortized cost basis of $41.0 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 $187.6 million commercial loan and $20.2 million of residential loans that were 90 days or greater past due at March 31, 2021. In March 2021, $7.3 million relating to the $187.6 million commercial loan that was 90 days or greater past due was converted to equity interests pursuant to a consensual transfer under pre-existing equity pledges of additional collateral (see Note 7). The million infrastructure loan in forbearance, were placed on nonaccrual status during the three months ended March 31, 2021, but are not considered credit deteriorated as we presently expect to recover all amounts due. 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 tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Held-for-Investment Total Three Months Ended March 31, 2021 Commercial Infrastructure Funded Loans Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ 77,444 Credit loss provision (reversal), net 1,880 717 2,597 Charge-offs (7,757) (1) — (7,757) Recoveries — — — Transfers (257) 257 — Credit loss allowance at March 31, 2021 $ 63,477 $ 8,807 $ 72,284 Unfunded Commitments Credit Loss Allowance (2) Loans Held-for-Investment Three Months Ended March 31, 2021 Commercial Infrastructure Total Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ 6,070 Credit loss reversal, net (2,122) (143) (2,265) Credit loss allowance at March 31, 2021 $ 3,136 $ 669 $ 3,805 Memo: Unfunded commitments as of March 31, 2021 (3) $ 1,291,304 $ 65,791 $ 1,357,095 (1) Relates to an unsecured promissory note deemed uncollectible in connection with a residential conversion project located in New York City. The note was previously considered credit deteriorated and was fully reserved. (2) Included in accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets. (3) Represents amounts expected to be funded (see Note 21). Loan Portfolio Activity The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Three Months Ended March 31, 2021 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Acquisitions/originations/additional funding 2,196,813 99,311 — 375,270 2,671,394 Capitalized interest (1) 36,646 — — — 36,646 Basis of loans sold (2) — — — (571,927) (571,927) Loan maturities/principal repayments (1,021,393) (18,055) (9,210) (44,326) (1,092,984) Discount accretion/premium amortization 15,824 921 — — 16,745 Changes in fair value — — (290) (9,188) (9,478) Unrealized foreign currency translation loss (14,082) (181) — — (14,263) Credit loss provision, net (1,880) (717) — — (2,597) Transfer to/from other asset classifications or between segments (211,904) 93,089 69,528 41,967 (7,320) Balance at March 31, 2021 $ 10,583,973 $ 1,586,808 $ 150,712 $ 844,631 $ 13,166,124 Held-for-Investment Loans Three Months Ended March 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 1,089,096 62,929 100,720 646,160 1,898,905 Capitalized interest (1) 36,072 — — — 36,072 Basis of loans sold (2) — — (604) (789,259) (789,863) Loan maturities/principal repayments (689,972) (37,051) (48,620) (20,680) (796,323) Discount accretion/premium amortization 11,559 411 — 110 12,080 Changes in fair value — — (25,619) 9,485 (16,134) Unrealized foreign currency translation loss (83,263) — — (4,056) (87,319) Credit loss provision, net (37,527) (5,805) — — (43,332) Transfer to/from other asset classifications — (26,333) (422,691) 449,024 — Balance at March 31, 2020 $ 8,832,907 $ 1,381,271 $ 274,758 $ 1,174,934 $ 11,663,870 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 11 for additional disclosure on these transactions. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Investment Securities | 5. Investment Securities Investment securities were comprised of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands): Carrying Value as of March 31, 2021 December 31, 2020 RMBS, available-for-sale $ 160,301 $ 167,349 RMBS, fair value option (1) 249,005 235,997 CMBS, fair value option (1), (2) 1,202,883 1,209,030 HTM debt securities, amortized cost net of credit loss allowance of $5,387 and $5,675 488,075 538,605 Equity security, fair value 10,655 11,247 Subtotal — 2,110,919 2,162,228 VIE eliminations (1) (1,432,632) (1,425,570) Total investment securities $ 678,287 $ 736,658 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $180.9 million and $179.5 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of March 31, 2021 and December 31, 2020, 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 Three Months Ended March 31, 2021 Purchases $ — $ 27,333 $ — $ — $ (27,333) $ — Sales — — 11,604 — (11,604) — Principal collections 7,251 13,344 1,710 51,690 (14,481) 59,514 Three Months Ended March 31, 2020 Purchases/fundings $ — $ 29,292 $ 7,661 $ 5,729 $ (36,953) $ 5,729 Sales — — 32,316 — (24,376) 7,940 Principal collections 6,549 8,572 16,523 6,638 (24,723) 13,559 (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 condensed 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 March 31, 2021 and December 31, 2020. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”). The tables below summarize various attributes of our investments in available-for-sale RMBS as of March 31, 2021 and December 31, 2020 (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 March 31, 2021 RMBS $ 118,647 $ — $ 118,647 $ 41,688 $ (34) $ 41,654 $ 160,301 December 31, 2020 RMBS $ 123,292 $ — $ 123,292 $ 44,123 $ (66) $ 44,057 $ 167,349 Weighted Average Coupon (1) WAL March 31, 2021 RMBS 1.2 % 5.9 (1) Calculated using the March 31, 2021 one-month LIBOR rate of 0.111% 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 March 31, 2021, approximately $139.4 million, or 87.0%, 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 $0.3 million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively, recorded as management fees in the accompanying condensed consolidated statements of operations. 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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 RMBS $ — $ 1,170 $ — $ (34) As of December 31, 2020 RMBS $ 438 $ 1,195 $ (25) $ (41) As of March 31, 2021 and December 31, 2020, there were one and two securities, respectively, 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 March 31, 2021, 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 $2.7 billion, respectively. As of March 31, 2021, 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 $249.0 million and $160.1 million, respectively. The $1.5 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 $19.3 million at March 31, 2021) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities. As of March 31, 2021, $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 March 31, 2021 and December 31, 2020 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Cost Basis Allowance Amount Holding Gains Holding Losses Fair Value March 31, 2021 CMBS $ 339,120 $ — $ 339,120 $ — $ (25,169) $ 313,951 Preferred interests 116,466 (2,462) 114,004 3,346 — 117,350 Infrastructure bonds 37,876 (2,925) 34,951 435 — 35,386 Total $ 493,462 $ (5,387) $ 488,075 $ 3,781 $ (25,169) $ 466,687 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 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 Three Months Ended March 31, 2021 Credit loss allowance at December 31, 2020 $ 2,749 $ 2,926 $ 5,675 Credit loss reversal, net (287) (1) (288) Credit loss allowance at March 31, 2021 $ 2,462 $ 2,925 $ 5,387 The table below summarizes the maturities of our HTM debt securities by type as of March 31, 2021 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 313,863 $ — $ — $ 313,863 One to three years 25,257 114,004 — 139,261 Three to five years — — — — Thereafter — — 34,951 34,951 Total $ 339,120 $ 114,004 $ 34,951 $ 488,075 Equity Security, Fair Value Option During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. The fair value of the investment remeasured in USD was $10.7 million and $11.2 million as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, our shares represent an approximate 2% interest in SEREF. |
Properties
Properties | 3 Months Ended |
Mar. 31, 2021 | |
Properties | |
Properties | 6. 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 $636.7 million and debt of $572.8 million as of March 31, 2021. 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 $610.6 million and debt of $512.6 million as of March 31, 2021. Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $760.3 million and debt of $592.9 million as of March 31, 2021. 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 $192.8 million as of March 31, 2021. Investing and Servicing Segment Property Portfolio The Investing and Servicing Segment Property Portfolio (“REIS Equity Portfolio”) is comprised of 15 commercial real estate properties and one equity interest in an unconsolidated commercial real estate property which were acquired from CMBS trusts during the previous five years. The REIS Equity Portfolio includes total gross properties and lease intangibles of $270.4 million and debt of $192.6 million as of March 31, 2021. The table below summarizes our properties held as of March 31, 2021 and December 31, 2020 (dollars in thousands): Depreciable Life March 31, 2021 December 31, 2020 Property Segment Land and land improvements 0 – 15 years $ 485,026 $ 484,846 Buildings and building improvements 5 – 45 years 1,691,423 1,690,701 Furniture & fixtures 3 – 7 years 60,926 59,632 Investing and Servicing Segment Land and land improvements 0 – 15 years 50,617 50,585 Buildings and building improvements 3 – 40 years 179,813 179,014 Furniture & fixtures 2 – 5 years 2,804 2,606 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 7 years 9,691 11,416 Buildings and building improvements 10 – 20 years 9,927 19,251 Construction in progress N/A 75,245 75,245 Properties, cost 2,565,472 2,573,296 Less: accumulated depreciation (320,724) (302,143) Properties, net $ 2,244,748 $ 2,271,153 (1) Represents properties acquired through loan foreclosure or exercise of control over loan borrower pledged equity interests. During the three months ended March 31, 2021, we sold an operating property within the Commercial and Residential Lending Segment for $30.6 million and recognized a gain of $17.7 million within gain on sale of investments and other assets in our condensed consolidated statement of operations. Refer to Note 3 for further discussion. No operating properties were sold during the three months ended March 31, 2020. |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 3 Months Ended |
Mar. 31, 2021 | |
Investment in Unconsolidated Entities | |
Investment in Unconsolidated Entities | 7. Investment in Unconsolidated Entities The table below summarizes our investments in unconsolidated entities as of March 31, 2021 and December 31, 2020 (dollars in thousands): Participation / Carrying value as of Ownership % (1) March 31, 2021 December 31, 2020 Equity method investments: Equity interest in a natural gas power plant 10% $ 24,840 $ 25,095 Investor entity which owns equity in an online real estate company 50% 9,573 9,397 Equity interests in commercial real estate 50% 1,368 1,543 Equity interest in and advances to a residential mortgage originator (2) N/A 18,458 17,852 Various (3) 15% - 50% 16,896 8,831 71,135 62,718 Other equity investments: Equity interest in a servicing and advisory business 2% 17,584 17,584 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 7,267 7,267 Various, including Federal Home Loan Bank stock 0% - 2% 4,921 20,485 29,772 45,336 $ 100,907 $ 108,054 (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 March 31, 2020 and December 31, 2020. (3) In March 2021, we obtained 15% equity interests in two investor entities that own 49% equity interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. As discussed in Note 4, the equity interests in the entertainment and retail centers were transferred under pre-existing equity pledges of additional collateral for the commercial loan. As of March 31, 2021, 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 March 31, 2021. During the three months ended March 31, 2021, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election or (ii) any indicators of impairment. |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangibles | |
Goodwill and Intangibles | 8. Goodwil l and Intangibles Goodwill Infrastructure Lending Segment The Infrastructure Lending Segment’s goodwill of $119.4 million at both March 31, 2021 and December 31, 2020 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. LNR Property LLC (“LNR”) The Investing and Servicing Segment’s goodwill of $140.4 million at both March 31, 2021 and December 31, 2020 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. 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 March 31, 2021 and December 31, 2020, the balance of the domestic servicing intangible was net of $42.9 million and $41.4 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 March 31, 2021 and December 31, 2020, the domestic servicing intangible had a balance of $55.3 million and $54.6 million, respectively, which represents our economic interest in this asset. Lease Intangibles In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties. The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of March 31, 2021 and December 31, 2020 (amounts in thousands): As of March 31, 2021 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 12,406 $ — $ 12,406 $ 13,202 $ — $ 13,202 In-place lease intangible assets 133,203 (94,726) 38,477 133,203 (92,540) 40,663 Favorable lease intangible assets 24,181 (8,292) 15,889 24,181 (7,929) 16,252 Total net intangible assets $ 169,790 $ (103,018) $ 66,772 $ 170,586 $ (100,469) $ 70,117 The following table summarizes the activity within intangible assets for the three months ended March 31, 2021 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2021 $ 13,202 $ 40,663 $ 16,252 $ 70,117 Amortization — (2,186) (363) (2,549) Changes in fair value due to changes in inputs and assumptions (796) — — (796) Balance as of March 31, 2021 $ 12,406 $ 38,477 $ 15,889 $ 66,772 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 (remainder of) $ 7,094 2022 7,862 2023 6,115 2024 4,722 2025 3,846 Thereafter 24,727 Total $ 54,366 |
Secured Borrowings
Secured Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Secured Borrowings | |
Secured Borrowings | |
Secured Borrowings | 9. Secured Borrowings Secured Financing Agreements The following table is a summary of our secured financing agreements in place as of March 31, 2021 and December 31, 2020 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum March 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2021 2020 Repurchase Agreements: Commercial Loans May 2021 to Aug 2025 (b) May 2023 to Mar 2029 (b) (c) $ 8,088,081 $ 9,164,525 (d) $ 5,592,652 $ 4,878,939 Residential Loans Jan 2022 to Oct 2023 N/A LIBOR + 2.09% 428,877 1,750,000 328,620 22,590 Infrastructure Loans Feb 2022 N/A LIBOR + 2.00% 295,516 500,000 246,136 232,961 Conduit Loans Feb 2022 to Jun 2023 Feb 2023 to Jun 2024 LIBOR + 2.15% 147,523 350,000 111,087 53,554 CMBS/RMBS Dec 2021 to Oct 2030 (e) Mar 2022 to Apr 2031 (e) (f) 1,112,819 823,365 668,993 (g) 620,763 Total Repurchase Agreements 10,072,816 12,587,890 6,947,488 5,808,807 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 304,076 650,000 (h) 223,302 43,014 Commercial Financing Facility Mar 2022 Mar 2029 GBP LIBOR + 1.75% 101,559 81,847 81,847 81,218 Residential Financing Facility Sep 2022 Sep 2025 3.50% 163,545 250,000 1,515 215,024 Infrastructure Acquisition Facility Sep 2021 Sep 2022 (i) 525,611 517,498 414,503 467,450 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.04% 699,684 1,250,000 548,956 538,645 Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (j) N/A 4.03% 1,271,385 1,155,306 1,155,306 1,077,528 Property Mortgages - Variable rate Nov 2021 to Jul 2030 N/A (k) 929,800 985,453 960,901 960,903 Term Loan and Revolver (l) N/A (l) N/A (l) 763,375 643,375 645,000 Federal Home Loan Bank N/A N/A N/A — — — 396,000 Total Other Secured Financing 3,995,660 5,653,479 4,029,705 4,424,782 $ 14,068,476 $ 18,241,369 10,977,193 10,233,589 Unamortized net discount (13,149) (13,569) Unamortized deferred financing costs (68,112) (73,830) $ 10,895,932 $ 10,146,190 (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 $1.9 billion as of March 31, 2021 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 2.01%. (d) The aggregate initial maximum facility size may be increased at our option, subject to certain conditions. The $9.2 billion amount includes such upsizes. (e) Certain facilities with an outstanding balance of $280.3 million as of March 31, 2021 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 $212.0 million as of March 31, 2021 has a weighted average fixed annual interest rate of 3.29 %. All other facilities are variable rate with a weighted average rate of LIBOR + 1.92%. (g) Includes: (i) $212.0 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $38.3 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 14). (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 6.5 years as of March 31, 2021. (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 643.4 million term loan facility that matures in July 2026, of which $394.0 million has an annual interest rate of LIBOR + 2.50% and $249.4 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 $4.2 billion as of March 31, 2021. In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations. 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 In March 2021, we entered into mortgage loans with total borrowings of $82.9 million to refinance our Woodstar II Portfolio. The loans carry seven-year terms and a weighted average fixed annual interest rate of 4.36%. A portion of the net proceeds from the mortgage loans was used to repay $4.9 million of outstanding government sponsored mortgage loans. Our secured financing agreements contain certain financial tests and covenants. As of March 31, 2021, 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 72 % of these agreements, do not permit valuation adjustments based on capital markets activity. Instead, margin calls on these facilities are limited to collateral-specific credit marks. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For 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 three months ended March 31, 2021 and 2020, approximately $9.5 million and $8.8 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our condensed 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 three months ended March 31, 2021, we utilized the reinvestment feature, contributing $98.6 million of additional interests into the CLO. The following table is a summary of our CLO as of March 31, 2021 and December 31, 2020 (amounts in thousands): Face Carrying Weighted March 31, 2021 Count Amount Value Average Spread Maturity Collateral assets 25 $ 1,099,693 $ 1,099,639 LIBOR + 4.21% (a) May 2024 (b) Financing 1 936,375 931,178 LIBOR + 1.63% (c) July 2038 (d) December 31, 2020 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) (a) Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. There were no fixed-rate loans financed by the CLO as of March 31, 2021 and December 31, 2020. (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 respective year-to-date period, 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 both the three months ended March 31, 2021 and 2020, approximately $0.6 million of amortization of deferred financing costs was included in interest expense on our condensed consolidated statements of operations. As of March 31, 2021 and December 31, 2020, our unamortized issuance costs were $5.2 million and $5.8 million, respectively. The CLO is considered a VIE, for which we are deemed the primary beneficiary. We therefore consolidate the CLO. Refer to Note 14 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 (remainder of) $ 302,200 $ 58,768 $ — $ 360,968 2022 1,548,791 419,128 — 1,967,919 2023 1,450,262 803,315 — 2,253,577 2024 1,480,044 475,383 — 1,955,427 2025 1,510,607 248,376 — 1,758,983 Thereafter 655,584 2,024,735 936,375 (a) 3,616,694 Total $ 6,947,488 $ 4,029,705 $ 936,375 $ 11,913,568 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes
Unsecured Senior Notes | 3 Months Ended |
Mar. 31, 2021 | |
Convertible Senior Notes | |
Unsecured Senior Notes | |
Unsecured Senior Notes | 10. Unsecured Senior Notes The following table is a summary of our unsecured senior notes outstanding as of March 31, 2021 and December 31, 2020 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization March 31, 2021 December 31, 2020 2021 Senior Notes 5.00 % 5.32 % 12/15/2021 0.7 years $ 700,000 $ 700,000 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 2.6 years 300,000 300,000 2023 Convertible Notes 4.38 % 4.57 % 4/1/2023 2.0 years 250,000 250,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 4.0 years 500,000 500,000 Total principal amount 1,750,000 1,750,000 Unamortized discount—Convertible Notes (910) (2,559) Unamortized discount—Senior Notes (8,356) (9,332) Unamortized deferred financing costs (5,076) (5,589) Carrying amount of debt components $ 1,735,658 $ 1,732,520 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes N/A $ 3,755 (1) Effective rate includes the effects of underwriter purchase discount. (2) The coupon on the 2025 Senior Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%. Our unsecured senior notes contain certain financial tests and covenants. As of March 31, 2021, we were in compliance with all such covenants. Convertible Senior 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 March 31, 2021 and mature on April 1, 2023. We recognized interest expense of $2.9 million and $3.0 million during the three months ended March 31, 2021 and 2020, respectively, from our Convertible Notes. The following table details the conversion attributes of our Convertible Notes outstanding as of March 31, 2021 (amounts in thousands, except rates): March 31, 2021 Conversion Conversion Rate (1) Price (2) 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 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture). (2) As of March 31, 2021, the market price of the Company’s common stock was $24.74. The if-converted value of the 2023 Convertible Notes was less than their principal amount by $11.3 million at March 31, 2021 as the closing market price per share. The if-converted value of the principal amount of the 2023 Convertible Notes was $238.7 million as of March 31, 2021. As of March 31, 2021, the net carrying amount and fair value of the 2023 Convertible Notes was $248.6 million and $255.8 million, respectively. Conditions for Conversion Prior to October 1, 2022, the 2023 Convertible 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 Convertible 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 Convertible 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 Convertible 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 | 3 Months Ended |
Mar. 31, 2021 | |
Loan Securitization/Sale Activities | |
Loan Securitization/Sale Activities | 11. Loan Securitization/Sale Activities 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. The following summarizes the face amount and proceeds of commercial and residential loans securitized for the three months ended March 31, 2021 and 2020 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Three Months Ended March 31, 2021 $ 85,037 $ 89,710 $ 383,549 $ 389,798 2020 335,835 352,393 381,279 398,747 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): Residential Face Amount Proceeds For the Three Months Ended March 31, 2021 $ 89,418 $ 92,419 2020 550 604 There were no sales of commercial loans within the Commercial and Residential Lending Segment during the three months ended March 31, 2021 and 2020. Infrastructure Loan Sales During the three months ended March 31, 2020, the Infrastructure Lending Segment sold loans held-for-sale with an aggregate face amount of $38.7 million for proceeds of $38.4 million, recognizing gains of $0.3 million. There were no sales of loans within the Infrastructure Lending Segment during the three months ended March 31, 2021. |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 3 Months Ended |
Mar. 31, 2021 | |
Derivatives and Hedging Activity | |
Derivatives and Hedging Activity | 12. Derivatives and Hedging Activity Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. Refer to Note 13 to the consolidated financial statements included in our Form 10-K for further discussion of our risk management objectives and policies. Designated Hedges The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of March 31, 2021 and December 31, 2020, the Company did not have any designated hedges. Non-designated Hedges and Derivatives 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 March 31, 2021 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 2 3,973 EUR November 2022 Fx contracts – Buy Pounds Sterling ("GBP") 8 16,675 GBP April 2021 – July 2022 Fx contracts – Sell EUR 208 252,796 EUR April 2021 – November 2025 Fx contracts – Sell GBP 156 556,798 GBP April 2021 – May 2024 Fx contracts – Sell Australian dollar ("AUD") 19 188,554 AUD August 2021 – June 2022 Interest rate swaps – Paying fixed rates 46 1,791,332 USD May 2023 – April 2031 Interest rate swaps – Receiving fixed rates 1 470,000 USD March 2025 Interest rate caps 22 985,635 USD April 2021 – April 2025 Credit index instruments 3 49,000 USD September 2058 – August 2061 Interest rate swap guarantees 6 371,890 USD March 2022 – June 2025 Total 471 The table below presents the fair value of our derivative financial instruments as well as their classification on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) as of in a Liability Position (2) as of March 31, December 31, March 31, December 31, 2021 2020 2021 2020 Interest rate contracts $ 25,331 $ 33,841 $ 4 $ 4 Interest rate swap guarantees — — 498 849 Foreign exchange contracts 12,617 6,585 34,002 39,951 Credit index instruments 81 129 301 520 Total derivatives $ 38,029 $ 40,555 $ 34,805 $ 41,324 (1) Classified as derivative assets in our condensed consolidated balance sheets. (2) Classified as derivative liabilities in our condensed consolidated balance sheets. The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (amounts in thousands): Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended March 31, as Hedging Instruments Recognized in Income 2021 2020 Interest rate contracts Gain on derivative financial instruments $ 20,158 $ (45,125) Interest rate swap guarantees Gain on derivative financial instruments 351 (675) Foreign exchange contracts Gain on derivative financial instruments 13,602 53,265 Credit index instruments Gain on derivative financial instruments (122) 2,245 $ 33,989 $ 9,710 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Offsetting Assets and Liabilities | |
Offsetting Assets and Liabilities | 13. 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 March 31, 2021 Derivative assets $ 38,029 $ — $ 38,029 $ 11,491 $ 24,235 $ 2,303 Derivative liabilities $ 34,805 $ — $ 34,805 $ 11,491 $ 22,618 $ 696 Repurchase agreements 6,947,488 — 6,947,488 6,947,488 — — $ 6,982,293 $ — $ 6,982,293 $ 6,958,979 $ 22,618 $ 696 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 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entities | |
Variable Interest Entities | 14. Variable Interest Entities 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 March 31, 2021 and December 31, 2020 (amounts in thousands): March 31, 2021 December 31, 2020 Assets: Cash and cash equivalents $ — $ 96,998 Loans held-for-investment 1,099,639 1,002,441 Accrued interest receivable 4,068 5,454 Other assets 307 557 Total Assets $ 1,104,014 $ 1,105,450 Liabilities Accounts payable, accrued expenses and other liabilities $ 640 $ 663 Collateralized loan obligations, net 931,178 930,554 Total Liabilities $ 931,818 $ 931,217 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 Intermediate LLC (“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 $685.4 million and liabilities of $520.6 million as of March 31, 2021. We also hold a 51 % controlling interest in a 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 are deemed the primary beneficiary of the CMBS JV. This VIE had total assets of $335.4 million and liabilities of $78.9 million as of March 31, 2021. Refer to Note 16 for further discussion. In addition to the above non-securitization entities, we have smaller VIEs with total assets of $98.7 million and liabilities of $53.8 million as of March 31, 2021. 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 March 31, 2021, 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 March 31, 2021, none of these five CDO structures were consolidated. As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of March 31, 2021, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $19.3 million on a fair value basis. As of March 31, 2021, 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 $3.9 billion. The corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations. We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $25.7 million as of March 31, 2021, within investment in unconsolidated entities on our condensed consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments. |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related-Party Transactions | |
Related-Party Transactions | 15. 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. Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of this agreement. Base Management Fee. Incentive Fee. Expense Reimbursement. For the three months ended March 31, 2021 and 2020, approximately $1.5 million and $2.2 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our condensed consolidated statements of operations. As of March 31, 2021 and December 31, 2020, there were $3.8 million and $5.0 million, respectively, of unpaid reimbursable executive compensation and other expenses included in related-party payable in our condensed consolidated balance sheets. Equity Awards. 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 RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted RSUs to our Manager under the 2017 Manager Equity Plan. In March 2017, we granted RSUs to our Manager under the Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of Investments in Loans and Securities During the three months ended March 31, 2021, the Company acquired $141.6 million of loans from a residential mortgage originator in which it holds an equity interest. Additionally, as of March 31, 2021, the Company had outstanding residential mortgage loan purchase commitments of $27.4 million to this residential mortgage originator. Refer to Note 7 for further discussion. 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. Other Related-Party Arrangements Highmark Residential (“Highmark”), an affiliate of our Manager, provides property management services for the 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 three months ended March 31, 2021 and 2020, property management fees to Highmark of Refer to Note 16 to the consolidated financial statements included in our Form 10-K for further discussion of related-party agreements. |
Stockholders' Equity and Non-Co
Stockholders' Equity and Non-Controlling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity and Non-Controlling Interests | |
Stockholders' Equity and Non-Controlling Interests | 16. Stockholders’ Equity and Non-Controlling Interests During the three months ended March 31, 2021, our board of directors declared the following dividends: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 3/11/21 3/31/21 3/30/21 4/15/21 0.48 Quarterly During the three months ended March 31, 2021 and 2020, there were no shares issued under our At-The-Market Equity Offering Sales Agreement. During the three months ended March 31, 2021 and 2020, shares issued under the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”) were not material. 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”). The table below summarizes our share awards granted or vested under the Manager Equity Plan and the 2017 Manager Equity Plan during the three months ended March 31, 2021 and 2020 (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 (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 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, 2021 1,594,605 2,286,896 3,881,501 $ 17.26 Granted 1,518,072 — 1,518,072 21.81 Vested (633,893) (296,342) (930,235) 17.48 Balance as of March 31, 2021 2,478,784 1,990,554 4,469,338 18.76 As of March 31, 2021, there were 3.2 million shares of common stock available for future grants under the 2017 Manager Equity Plan and the 2017 Equity Plan. Non-Controlling Interests in Consolidated Subsidiaries 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. As of March 31, 2021, all of the 1.9 million contingent Class A Units were issued. 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 three months ended March 31, 2021, redemptions of 0.1 million of the Class A Units were received and settled in common stock, leaving 10.6 million Class A Units outstanding as of March 31, 2021. In consolidation, the outstanding Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our condensed consolidated balance sheets, the balance of which was $225.6 million and $226.7 million as of March 31, 2021 and December 31, 2020, respectively. To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our condensed consolidated statements of operations. During both the three months ended March 31, 2021 and 2020, we recognized net income attributable to non-controlling interests of $5.1 million associated with these Class A Units. As discussed in Note 14, we hold a 51% controlling interest in the CMBS JV within our Investing and Servicing Segment. Because the CMBS JV is deemed a VIE for which we are the primary beneficiary, the 49% interest of our joint venture partner is reflected as a non-controlling interest in consolidated subsidiaries on our condensed 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 $132.4 million and $126.7 million as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, net income (loss) attributable to non-controlling interests was $5.4 million and $(6.0) million, respectively. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share | |
Earnings per Share | 17. Earnings per Share The following table provides a reconciliation of net income (loss) and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended March 31, 2021 2020 Basic Earnings (Loss) Income (loss) attributable to STWD common stockholders $ 111,378 $ (66,769) Less: Income attributable to participating shares not already deducted as non-controlling interests (1,925) (1,222) Basic earnings (loss) $ 109,453 $ (67,991) Diluted Earnings (Loss) Income (loss) attributable to STWD common stockholders $ 111,378 $ (66,769) Less: Income attributable to participating shares not already deducted as non-controlling interests (1,925) (1,222) Add: Interest expense on Convertible Notes 2,916 * Diluted earnings (loss) $ 112,369 $ (67,991) Number of Shares: Basic — Average shares outstanding 283,319 280,990 Effect of dilutive securities — Convertible Notes 9,649 * Effect of dilutive securities — Contingently issuable shares 263 — Diluted — Average shares outstanding 293,231 280,990 Earnings (Loss) Per Share Attributable to STWD Common Stockholders: Basic $ 0.39 $ (0.24) Diluted $ 0.38 $ (0.24) * As of March 31, 2021 and 2020, participating shares of 14.6 million and 13.2 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at both March 31, 2021 and 2020 included 10.6 million potential shares of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 16. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | 18. Accumulated Other Comprehensive Income The changes in AOCI by component are as follows (amounts in thousands): Cumulative Unrealized Gain (Loss) on Foreign Available-for- Currency Sale Securities Translation Total Three Months Ended March 31, 2021 Balance at January 1, 2021 $ 44,057 $ (64) $ 43,993 OCI before reclassifications (2,403) — (2,403) Amounts reclassified from AOCI — 64 64 Net period OCI (2,403) 64 (2,339) Balance at March 31, 2021 $ 41,654 $ — $ 41,654 Three Months Ended March 31, 2020 Balance at January 1, 2020 $ 50,996 $ (64) $ 50,932 OCI before reclassifications (15,048) — (15,048) Amounts reclassified from AOCI — — — Net period OCI (15,048) — (15,048) Balance at March 31, 2020 $ 35,948 $ (64) $ 35,884 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value | |
Fair Value | 19. Fair Value 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 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 March 31, 2021 and December 31, 2020, 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 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 and CLO The fair value of the secured financing agreements and CLO 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. Unsecured senior notes The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II 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 condensed consolidated balance sheets by their level in the fair value hierarchy as of March 31, 2021 and December 31, 2020 (amounts in thousands): March 31, 2021 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 763,773 $ — $ — $ 763,773 RMBS 160,301 — — 160,301 CMBS 19,256 — — 19,256 Equity security 10,655 10,655 — — Domestic servicing rights 12,406 — — 12,406 Derivative assets 38,029 — 38,029 — VIE assets 62,367,110 — — 62,367,110 Total $ 63,371,530 $ 10,655 $ 38,029 $ 63,322,846 Financial Liabilities: Derivative liabilities $ 34,805 $ — $ 34,805 $ — VIE liabilities 60,896,709 — 58,669,281 2,227,428 Total $ 60,931,514 $ — $ 58,704,086 $ 2,227,428 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 The changes in financial assets and liabilities classified as Level III are as follows for the three months ended March 31, 2021 and 2020 (amounts in thousands): Domestic Loans at Servicing VIE Three Months Ended March 31, 2021 Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2021 balance $ 1,022,979 $ 167,349 $ 19,457 $ 13,202 $ 64,238,328 $ (2,019,876) $ 63,441,439 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale (9,478) — 372 (796) (2,264,591) 65,681 (2,208,812) Net accretion — 2,606 — — — — 2,606 Included in OCI — (2,403) — — — — (2,403) Purchases / Originations 375,270 — — — — — 375,270 Sales (571,927) — — — — — (571,927) Issuances — — — — — (11,604) (11,604) Cash repayments / receipts (53,071) (7,251) (573) — — (1,137) (62,032) Transfers into Level III — — — — — (409,267) (409,267) Transfers out of Level III — — — — — 148,775 148,775 Consolidation of VIEs — — — — 393,373 — 393,373 March 31, 2021 balance $ 763,773 $ 160,301 $ 19,256 $ 12,406 $ 62,367,110 $ (2,227,428) $ 61,095,418 Amount of unrealized gains (losses) attributable to assets still held at March 31, 2021: Included in earnings $ (7,708) $ 2,606 $ 372 $ (796) $ (2,264,591) $ 65,681 $ (2,204,436) Included in OCI $ — $ (2,403) $ — $ — $ — $ — $ (2,403) Domestic Loans at Servicing VIE Three Months Ended March 31, 2020 Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2020 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 (16,134) — 5,738 (393) (3,506,792) 146,282 (3,371,299) Net accretion — 2,661 — — — — 2,661 Included in OCI — (15,048) — — — — (15,048) Purchases / Originations 746,880 — — — — — 746,880 Sales (751,746) — (7,940) — — — (759,686) Issuances — — — — — (24,376) (24,376) Cash repayments / receipts (67,397) (6,549) (371) — — (8,916) (83,233) Transfers into Level III — — — — — (101,265) (101,265) Transfers out of Level III — — — — — 1,090,325 1,090,325 Consolidation of VIEs — — — — 2,477,422 (71,095) 2,406,327 March 31, 2020 balance $ 1,347,797 $ 170,640 $ 22,435 $ 16,524 $ 61,157,805 $ (1,506,437) $ 61,208,764 Amount of unrealized (losses) gains attributable to assets still held at March 31, 2020: Included in earnings $ (39,070) $ 2,661 $ (647) $ (393) $ (3,506,792) $ 146,282 $ (3,397,959) Included in OCI $ — $ (15,048) $ — $ — $ — $ — $ (15,048) 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 of our financial instruments not carried at fair value on the condensed consolidated balance sheets (amounts in thousands): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans held-for-sale $ 12,402,351 $ 12,460,388 $ 11,116,929 $ 11,107,316 HTM debt securities 488,075 466,687 538,605 515,253 Financial liabilities not carried at fair value: Secured financing agreements and CLO $ 11,827,110 $ 11,900,381 $ 11,076,744 $ 11,108,364 Unsecured senior notes 1,735,658 1,803,224 1,732,520 1,786,667 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) March 31, 2021 Technique Input March 31, 2021 December 31, 2020 Loans under fair value option $ 763,773 Discounted cash flow, market pricing Coupon (d) 3.4% - 9.5% (5.5%) 3.3% - 9.7% (5.9%) Remaining contractual term (d) 7.0 - 39.0 years ( 24.7 years) 7.3 - 39.3 years ( 26.3 years) FICO score (a) 519 - 823 (732) 519 - 823 (727) LTV (b) 15% - 94% (66%) 5% - 94% (68%) Purchase price (d) 85.6% - 104.8% (101.7%) 84.4% - 104.8% (99.8%) RMBS 160,301 Discounted cash flow Constant prepayment rate (a) 3.5% - 17.3% (7.4%) 3.6% - 19.4% (7.6%) Constant default rate (b) 0.7% - 5.0% (2.2%) 0.7% - 5.4% (2.4%) Loss severity (b) 0% - 84% (17%) (f) 0% - 85% (20%) (f) Delinquency rate (c) 9% - 32% (18%) 10% - 32% (19%) Servicer advances (a) 23% - 84% (53%) 23% - 82% (54%) Annual coupon deterioration (b) 0.0% - 1.2% (0.1%) 0.0% - 0.9% (0.1%) Putback amount per projected total collateral loss (e) 0% -17% (0.8%) 0% -17% (0.8%) CMBS 19,256 Discounted cash flow Yield (b) 0% - 298.5% (5.9%) 0% - 536.6% (7.1%) Duration (c) 0 - 7.6 years ( 6.0 years) 0 - 7.6 years ( 5.3 years) Domestic servicing rights 12,406 Discounted cash flow Debt yield (a) 7.25% (7.25%) 7.50% (7.50%) Discount rate (b) 15% (15%) 15% (15%) VIE assets 62,367,110 Discounted cash flow Yield (b) 0% - 752.4% (16.9%) 0% - 312.2% (14.3%) Duration (c) 0 - 20.6 years ( 3.8 years) 0 - 16.3 years ( 3.8 years) VIE liabilities (2,227,428) Discounted cash flow Yield (b) 0% - 752.4% (17.3%) 0% - 312.2% (14.4%) Duration (c) 0 - 11.0 years ( 3.7 years) 0 - 10.8 years ( 3.8 years) (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of March 31, 2021 and 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) 14% and 23% of the portfolio falls within a range of 45% - 80% as of March 31, 2021 and December 31, 2020, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
Income Taxes | 20. Income Taxes 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 March 31, 2021 and December 31, 2020, approximately $959.6 million and $1.4 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. The following table is a reconciliation of our U.S. federal income tax provision (benefit) determined using our statutory federal tax rate to our reported income tax (benefit) provision for the three months ended March 31, 2021 and 2020 (dollars in thousands): For the Three Months Ended March 31, 2021 2020 Federal statutory tax rate $ 26,199 21.0 % $ (15,329) 21.0 % REIT and other non-taxable loss (24,501) (19.6) % 9,914 (13.6) % State income taxes 558 0.4 % (1,779) 2.4 % Federal benefit of state tax deduction (117) (0.1) % 374 (0.5) % Other 91 0.1 % 91 (0.1) % Effective tax rate $ 2,230 1.8 % $ (6,729) 9.2 % 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 included 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., included measures to assist companies, including temporary changes to income and non-income-based tax laws, and allowed 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 in 2020 to a year in which the federal tax rate was 35 %. We continue to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. The Company used the discrete tax approach in calculating the tax benefit for the three months ended March 31, 2020 due to the fact that a relatively small change in the Company’s projected pre-tax net loss could have resulted in a volatile effective tax rate. Under the discrete method, the tax benefit was determined based upon actual results as if the interim period was an annual period. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 21. Commitments and Contingencie s As of March 31, 2021, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $1.5 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. Additionally, as of March 31, 2021, our Commercial and Residential Lending Segment had outstanding residential mortgage loan purchase commitments of $82.7 million. As of March 31, 2021, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $192.5 million, including $126.7 million under revolvers and letters of credit (“LCs”), and $65.8 million under delayed draw term loans. As of March 31, 2021, $15.6 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 March 31, 2021, we had six outstanding guarantees on interest rate swaps maturing between March 2022 and June 2025. Refer to Note 12 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 condensed consolidated financial statements. |
Segment Data
Segment Data | 3 Months Ended |
Mar. 31, 2021 | |
Segment Data | |
Segment Data | 22. Segment 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 three months ended March 31, 2021 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 $ 170,593 $ 18,808 $ — $ 1,174 $ — $ 190,575 $ — $ 190,575 Interest income from investment securities 18,385 564 — 20,940 — 39,889 (28,279) 11,610 Servicing fees 124 — — 12,456 — 12,580 (4,178) 8,402 Rental income 1,339 — 65,104 9,895 — 76,338 — 76,338 Other revenues 90 93 40 82 — 305 — 305 Total revenues 190,531 19,465 65,144 44,547 — 319,687 (32,457) 287,230 Costs and expenses: Management fees 315 — — 222 38,188 38,725 11 38,736 Interest expense 44,295 8,841 15,832 5,449 29,148 103,565 (191) 103,374 General and administrative 11,333 3,442 1,023 18,440 4,311 38,549 87 38,636 Acquisition and investment pursuit costs 185 — — — — 185 — 185 Costs of rental operations 477 — 23,960 4,308 — 28,745 — 28,745 Depreciation and amortization 307 100 18,100 3,967 — 22,474 — 22,474 Credit loss (reversal) provision, net (529) 573 — — — 44 — 44 Other expense 31 — 583 71 — 685 — 685 Total costs and expenses 56,414 12,956 59,498 32,457 71,647 232,972 (93) 232,879 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 39,745 39,745 Change in fair value of servicing rights — — — 745 — 745 (1,541) (796) Change in fair value of investment securities, net (2,050) — — 7,170 — 5,120 (5,426) (306) Change in fair value of mortgage loans, net (10,714) — — 1,236 — (9,478) — (9,478) Earnings (loss) from unconsolidated entities 1,753 (254) — 589 — 2,088 (354) 1,734 Gain on sale of investments and other assets, net 17,693 — — — — 17,693 — 17,693 Gain (loss) on derivative financial instruments, net 26,141 684 4,724 9,283 (6,843) 33,989 — 33,989 Foreign currency (loss) gain, net (11,594) (49) 25 (63) — (11,681) — (11,681) Loss on extinguishment of debt (68) (307) (141) — — (516) — (516) Other income, net — 21 — — — 21 — 21 Total other income (loss) 21,161 95 4,608 18,960 (6,843) 37,981 32,424 70,405 Income (loss) before income taxes 155,278 6,604 10,254 31,050 (78,490) 124,696 60 124,756 Income tax provision (1,505) (92) — (633) — (2,230) — (2,230) Net income (loss) 153,773 6,512 10,254 30,417 (78,490) 122,466 60 122,526 Net income attributable to non-controlling interests (3) — (5,077) (6,008) — (11,088) (60) (11,148) Net income (loss) attributable to Starwood Property Trust, Inc . $ 153,770 $ 6,512 $ 5,177 $ 24,409 $ (78,490) $ 111,378 $ — $ 111,378 The table below presents our results of operations for the three months ended March 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 $ 192,381 $ 22,413 $ — $ 2,633 $ — $ 217,427 $ — $ 217,427 Interest income from investment securities 18,628 701 — 24,800 — 44,129 (28,889) 15,240 Servicing fees 172 — — 6,442 — 6,614 (1,821) 4,793 Rental income 78 — 63,961 10,107 — 74,146 — 74,146 Other revenues 178 143 122 513 — 956 (2) 954 Total revenues 211,437 23,257 64,083 44,495 — 343,272 (30,712) 312,560 Costs and expenses: Management fees 351 — — 239 40,107 40,697 31 40,728 Interest expense 53,950 13,117 17,121 7,194 28,805 120,187 (162) 120,025 General and administrative 8,132 4,423 1,078 20,684 4,301 38,618 84 38,702 Acquisition and investment pursuit costs 860 17 12 20 — 909 — 909 Costs of rental operations 778 — 22,852 4,584 — 28,214 — 28,214 Depreciation and amortization 415 70 19,288 4,207 — 23,980 — 23,980 Credit loss provision, net 40,217 8,452 — — — 48,669 — 48,669 Other expense 77 — 311 — — 388 — 388 Total costs and expenses 104,780 26,079 60,662 36,928 73,213 301,662 (47) 301,615 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — (45,493) (45,493) Change in fair value of servicing rights — — — 318 — 318 (711) (393) Change in fair value of investment securities, net (27,879) — — (47,216) — (75,095) 77,599 2,504 Change in fair value of mortgage loans, net (35,517) — — 19,383 — (16,134) — (16,134) Earnings (loss) from unconsolidated entities 51 — — 620 — 671 (574) 97 Gain on sale of investments and other assets, net — 296 — — — 296 — 296 Gain (loss) on derivative financial instruments, net 30,805 (1,001) (30,223) (19,106) 29,235 9,710 — 9,710 Foreign currency (loss) gain, net (34,001) (473) (19) 7 — (34,486) — (34,486) Loss on extinguishment of debt — (170) — — — (170) — (170) Other income, net — — 50 76 — 126 — 126 Total other income (loss) (66,541) (1,348) (30,192) (45,918) 29,235 (114,764) 30,821 (83,943) Income (loss) before income taxes 40,116 (4,170) (26,771) (38,351) (43,978) (73,154) 156 (72,998) Income tax benefit 4,422 145 — 2,162 — 6,729 — 6,729 Net income (loss) 44,538 (4,025) (26,771) (36,189) (43,978) (66,425) 156 (66,269) Net (income) loss attributable to non-controlling interests (3) — (5,111) 4,770 — (344) (156) (500) Net income (loss) attributable to Starwood Property Trust, Inc . $ 44,535 $ (4,025) $ (31,882) $ (31,419) $ (43,978) $ (66,769) $ — $ (66,769) The table below presents our condensed consolidated balance sheet as of March 31, 2021 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 $ 56,629 $ 7,873 $ 39,791 $ 29,064 $ 217,049 $ 350,406 $ 784 $ 351,190 Restricted cash 69,882 27,973 6,672 14,197 — 118,724 — 118,724 Loans held-for-investment, net 10,733,752 1,586,808 — 933 — 12,321,493 — 12,321,493 Loans held-for-sale 587,037 89,368 — 168,226 — 844,631 — 844,631 Investment securities 969,968 34,951 — 1,106,000 — 2,110,919 (1,432,632) 678,287 Properties, net 93,718 — 1,954,880 196,150 — 2,244,748 — 2,244,748 Intangible assets — — 38,833 70,857 — 109,690 (42,918) 66,772 Investment in unconsolidated entities 47,514 24,840 — 44,435 — 116,789 (15,882) 100,907 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 13,088 — 162 320 24,459 38,029 — 38,029 Accrued interest receivable 97,853 3,310 — 274 408 101,845 (132) 101,713 Other assets 61,677 7,107 85,740 44,719 9,646 208,889 (16) 208,873 VIE assets, at fair value — — — — — — 62,367,110 62,367,110 Total Assets $ 12,731,118 $ 1,901,639 $ 2,126,078 $ 1,815,612 $ 251,562 $ 18,826,009 $ 60,876,314 $ 79,702,323 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 37,206 $ 16,010 $ 44,184 $ 24,110 $ 56,614 $ 178,124 $ 91 $ 178,215 Related-party payable — — — — 36,135 36,135 — 36,135 Dividends payable — — — — 138,906 138,906 — 138,906 Derivative liabilities 33,190 1,310 — 305 — 34,805 — 34,805 Secured financing agreements, net 6,502,059 1,259,813 1,871,026 653,222 631,655 10,917,775 (21,843) 10,895,932 Collateralized loan obligations, net 931,178 — — — — 931,178 — 931,178 Unsecured senior notes, net — — — — 1,735,658 1,735,658 — 1,735,658 VIE liabilities, at fair value — — — — — — 60,896,709 60,896,709 Total Liabilities 7,503,633 1,277,133 1,915,210 677,637 2,598,968 13,972,581 60,874,957 74,847,538 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,943 2,943 — 2,943 Additional paid-in capital 1,074,553 599,666 25,905 (298,098) 3,823,011 5,225,037 — 5,225,037 Treasury stock — — — — (138,022) (138,022) — (138,022) Accumulated other comprehensive income 41,654 — — — — 41,654 — 41,654 Retained earnings (accumulated deficit) 4,111,160 24,840 (40,641) 1,285,229 (6,035,338) (654,750) — (654,750) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,227,367 624,506 (14,736) 987,131 (2,347,406) 4,476,862 — 4,476,862 Non-controlling interests in consolidated subsidiaries 118 — 225,604 150,844 — 376,566 1,357 377,923 Total Equity 5,227,485 624,506 210,868 1,137,975 (2,347,406) 4,853,428 1,357 4,854,785 Total Liabilities and Equity $ 12,731,118 $ 1,901,639 $ 2,126,078 $ 1,815,612 $ 251,562 $ 18,826,009 $ 60,876,314 $ 79,702,323 The table below presents our condensed 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 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 23. Subsequent Events Our significant events subsequent to March 31, 2021 were as follows: Collateralized Loan Obligations In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a $500.0 million new issue CLO, STWD 2021-SIF1, 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 . In May 2021, we refinanced a pool of our commercial loans held-for-investment through a $1.3 billion CLO, STWD 2021-FL2, with $1.1 billion of third party financing at an average coupon of LIBOR + 150 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 two years . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 22 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 condensed consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (our “Form 10-K”), as filed with the Securities and Exchange Commission (“SEC”). The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the operating results for the full year. Refer to our Form 10-K for a description of our recurring accounting policies. We have included disclosure in this Note 2 regarding principles of consolidation and other accounting policies that (i) are required to be disclosed quarterly, (ii) we view as critical, (iii) became significant since December 31, 2020 due to a corporate action or increase in the significance of the underlying business activity or (iv) changed upon adoption of an Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). |
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 condensed consolidated statements of operations. The residual difference shown on our condensed 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 condensed 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 1% of our consolidated securitization VIE assets, with the remaining 99 % 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 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. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. |
Fair Value Measurements | Fair Value Measurements We measure our mortgage-backed securities, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 19 for further discussion regarding our fair value measurements. |
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 the loans are credit deteriorated or 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. |
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 condensed 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 our 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 condensed 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 4 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. |
Convertible Senior Notes | Convertible Senior Notes Effective January 1, 2021, the Company early adopted 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), 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, our convertible senior notes (the “Convertible Notes”), which were previously accounted for as having separate liability and equity components, are now accounted for as a single liability measured at amortized cost. The standard was adopted using the modified restrospective method of transition, which resulted in a cumulative decrease to additional paid-in capital of $3.7 million, partially offset by a cumulative decrease to accumulated deficit of $2.2 million as of January 1, 2021. |
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. 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. |
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 restricted stock (“RSAs”) and restricted stock units (“RSUs”), (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our Convertible Notes (see Notes 10 and 17) and (iv) non-controlling interests that are redeemable with our common stock (see Note 16). 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 16). 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 three months ended March 31, 2021 and 2020, the two-class method resulted in the most dilutive EPS calculation. |
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 March 31, 2021. 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 March 31, 2021 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, |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans | |
Summary of investments in mortgages and loans by subordination class | The following tables summarize our investments in mortgages and loans as of March 31, 2021 and December 31, 2020 (dollars in thousands): Weighted Weighted Average Life Carrying Face Average (“WAL”) March 31, 2021 Value Amount Coupon (1) (years)(2) Loans held-for-investment: Commercial loans: First mortgages (3), (8) $ 9,955,674 $ 10,003,057 5.1 % 1.7 Subordinated mortgages (4) 70,457 71,428 8.8 % 2.5 Mezzanine loans (3) 603,119 601,080 10.1 % 1.4 Other 18,200 20,267 8.2 % 2.6 Total commercial loans 10,647,450 10,695,832 Infrastructure first priority loans (5) 1,595,615 1,616,716 4.3 % 4.1 Residential loans, fair value option (6) 150,712 149,404 6.2 % N/A (7) Total loans held-for-investment 12,393,777 12,461,952 Loans held-for-sale: Residential, fair value option (6) 444,835 435,025 5.7 % N/A (7) Commercial, $168,226 under fair value option (8) 310,428 314,917 4.3 % 5.7 Infrastructure, lower of cost or fair value (5) 89,368 89,601 2.9 % 2.6 Total loans held-for-sale 844,631 839,543 Total gross loans 13,238,408 $ 13,301,495 Credit loss allowances: Commercial loans held-for-investment (63,477) Infrastructure loans held-for-investment (8,807) Total allowances (72,284) Total net loans $ 13,166,124 December 31, 2020 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 1,420,273 1,439,940 4.4 % 4.3 Residential loans, fair value option 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 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 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 (1) Calculated using LIBOR or other applicable index rates as of March 31, 2021 and December 31, 2020 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 $917.8 million and $877.3 million being classified as first mortgages as of March 31, 2021 and December 31, 2020, 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 three months ended March 31, 2021, $30.7 million of infrastructure loans held-for-sale were reclassified into loans held-for-investment. (6) During the three months ended March 31, 2021, a net amount of $69.5 million of residential loans held-for-sale were reclassified into loans held-for-investment. (7) Residential loans have a weighted average remaining contractual life of 28.9 years and 27.9 years as of March 31, 2021 and December 31, 2020, respectively. (8) During the three months ended March 31, 2021, $142.2 million of commercial loans held-for-investment were reclassified into loans held-for-sale. |
Summary of variable rate loans held-for-investment | As of March 31, 2021, our variable rate loans held-for-investment were as follows (dollars in thousands): Carrying Weighted-average March 31, 2021 Value Spread Above Index Commercial loans $ 9,969,387 4.3 % Infrastructure loans 1,595,615 3.8 % Total variable rate loans held-for-investment $ 11,565,002 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 March 31, 2021 (dollars in thousands): Term Loans Revolving Loans Total Credit Amortized Cost Basis by Origination Year Amortized Cost Amortized Loss As of March 31, 2021 2021 2020 2019 2018 2017 Prior Total Cost Basis Allowance Commercial loans: Credit quality indicator: LTV < 60% $ 1,152,309 $ 709,735 $ 1,314,912 $ 1,225,605 $ 729,227 $ 425,570 $ — $ 5,557,358 $ 7,015 LTV 60% - 70% 859,035 480,542 1,530,002 825,212 39,916 82,088 — 3,816,795 31,535 LTV > 70% — 240,217 599,518 312,972 — 61,426 — 1,214,133 16,661 Credit deteriorated — — — 28,986 — 11,977 — 40,963 8,266 Defeased and other — — — — — 18,201 — 18,201 — Total commercial $ 2,011,344 $ 1,430,494 $ 3,444,432 $ 2,392,775 $ 769,143 $ 599,262 $ — $ 10,647,450 $ 63,477 Infrastructure loans: Credit quality indicator: Power $ — $ 77,525 $ 220,901 $ 397,619 $ 124,959 $ 371,072 $ 10,057 $ 1,202,133 $ 5,074 Oil and gas — 19,902 267,727 100,803 — — 5,050 393,482 3,733 Total infrastructure $ — $ 97,427 $ 488,628 $ 498,422 $ 124,959 $ 371,072 $ 15,107 $ 1,595,615 $ 8,807 Residential loans held-for-investment, fair value option 150,712 — Loans held-for-sale 844,631 — Total gross loans $ 13,238,408 $ 72,284 |
Schedule of activity in allowance for loan losses | The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Held-for-Investment Total Three Months Ended March 31, 2021 Commercial Infrastructure Funded Loans Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ 77,444 Credit loss provision (reversal), net 1,880 717 2,597 Charge-offs (7,757) (1) — (7,757) Recoveries — — — Transfers (257) 257 — Credit loss allowance at March 31, 2021 $ 63,477 $ 8,807 $ 72,284 Unfunded Commitments Credit Loss Allowance (2) Loans Held-for-Investment Three Months Ended March 31, 2021 Commercial Infrastructure Total Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ 6,070 Credit loss reversal, net (2,122) (143) (2,265) Credit loss allowance at March 31, 2021 $ 3,136 $ 669 $ 3,805 Memo: Unfunded commitments as of March 31, 2021 (3) $ 1,291,304 $ 65,791 $ 1,357,095 (1) Relates to an unsecured promissory note deemed uncollectible in connection with a residential conversion project located in New York City. The note was previously considered credit deteriorated and was fully reserved. (2) Included in accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets. (3) Represents amounts expected to be funded (see Note 21). |
Schedule of activity in loan portfolio | The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Three Months Ended March 31, 2021 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Acquisitions/originations/additional funding 2,196,813 99,311 — 375,270 2,671,394 Capitalized interest (1) 36,646 — — — 36,646 Basis of loans sold (2) — — — (571,927) (571,927) Loan maturities/principal repayments (1,021,393) (18,055) (9,210) (44,326) (1,092,984) Discount accretion/premium amortization 15,824 921 — — 16,745 Changes in fair value — — (290) (9,188) (9,478) Unrealized foreign currency translation loss (14,082) (181) — — (14,263) Credit loss provision, net (1,880) (717) — — (2,597) Transfer to/from other asset classifications or between segments (211,904) 93,089 69,528 41,967 (7,320) Balance at March 31, 2021 $ 10,583,973 $ 1,586,808 $ 150,712 $ 844,631 $ 13,166,124 Held-for-Investment Loans Three Months Ended March 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 1,089,096 62,929 100,720 646,160 1,898,905 Capitalized interest (1) 36,072 — — — 36,072 Basis of loans sold (2) — — (604) (789,259) (789,863) Loan maturities/principal repayments (689,972) (37,051) (48,620) (20,680) (796,323) Discount accretion/premium amortization 11,559 411 — 110 12,080 Changes in fair value — — (25,619) 9,485 (16,134) Unrealized foreign currency translation loss (83,263) — — (4,056) (87,319) Credit loss provision, net (37,527) (5,805) — — (43,332) Transfer to/from other asset classifications — (26,333) (422,691) 449,024 — Balance at March 31, 2020 $ 8,832,907 $ 1,381,271 $ 274,758 $ 1,174,934 $ 11,663,870 (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 11 for additional disclosure on these transactions. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of investment securities | Investment securities were comprised of the following as of March 31, 2021 and December 31, 2020 (amounts in thousands): Carrying Value as of March 31, 2021 December 31, 2020 RMBS, available-for-sale $ 160,301 $ 167,349 RMBS, fair value option (1) 249,005 235,997 CMBS, fair value option (1), (2) 1,202,883 1,209,030 HTM debt securities, amortized cost net of credit loss allowance of $5,387 and $5,675 488,075 538,605 Equity security, fair value 10,655 11,247 Subtotal — 2,110,919 2,162,228 VIE eliminations (1) (1,432,632) (1,425,570) Total investment securities $ 678,287 $ 736,658 (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $180.9 million and $179.5 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of March 31, 2021 and December 31, 2020, 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 Three Months Ended March 31, 2021 Purchases $ — $ 27,333 $ — $ — $ (27,333) $ — Sales — — 11,604 — (11,604) — Principal collections 7,251 13,344 1,710 51,690 (14,481) 59,514 Three Months Ended March 31, 2020 Purchases/fundings $ — $ 29,292 $ 7,661 $ 5,729 $ (36,953) $ 5,729 Sales — — 32,316 — (24,376) 7,940 Principal collections 6,549 8,572 16,523 6,638 (24,723) 13,559 (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 condensed 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 March 31, 2021 and December 31, 2020 (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 March 31, 2021 RMBS $ 118,647 $ — $ 118,647 $ 41,688 $ (34) $ 41,654 $ 160,301 December 31, 2020 RMBS $ 123,292 $ — $ 123,292 $ 44,123 $ (66) $ 44,057 $ 167,349 Weighted Average Coupon (1) WAL March 31, 2021 RMBS 1.2 % 5.9 (1) Calculated using the March 31, 2021 one-month LIBOR rate of 0.111% 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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 RMBS $ — $ 1,170 $ — $ (34) As of December 31, 2020 RMBS $ 438 $ 1,195 $ (25) $ (41) |
Held-to-maturity | |
Summary of investments in HTM securities | The table below summarizes our investments in HTM debt securities as of March 31, 2021 and December 31, 2020 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Cost Basis Allowance Amount Holding Gains Holding Losses Fair Value March 31, 2021 CMBS $ 339,120 $ — $ 339,120 $ — $ (25,169) $ 313,951 Preferred interests 116,466 (2,462) 114,004 3,346 — 117,350 Infrastructure bonds 37,876 (2,925) 34,951 435 — 35,386 Total $ 493,462 $ (5,387) $ 488,075 $ 3,781 $ (25,169) $ 466,687 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 |
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 Three Months Ended March 31, 2021 Credit loss allowance at December 31, 2020 $ 2,749 $ 2,926 $ 5,675 Credit loss reversal, net (287) (1) (288) Credit loss allowance at March 31, 2021 $ 2,462 $ 2,925 $ 5,387 |
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 March 31, 2021 (amounts in thousands): Preferred Infrastructure CMBS Interests Bonds Total Less than one year $ 313,863 $ — $ — $ 313,863 One to three years 25,257 114,004 — 139,261 Three to five years — — — — Thereafter — — 34,951 34,951 Total $ 339,120 $ 114,004 $ 34,951 $ 488,075 |
Properties (Tables)
Properties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Properties | |
Summary of properties | The table below summarizes our properties held as of March 31, 2021 and December 31, 2020 (dollars in thousands): Depreciable Life March 31, 2021 December 31, 2020 Property Segment Land and land improvements 0 – 15 years $ 485,026 $ 484,846 Buildings and building improvements 5 – 45 years 1,691,423 1,690,701 Furniture & fixtures 3 – 7 years 60,926 59,632 Investing and Servicing Segment Land and land improvements 0 – 15 years 50,617 50,585 Buildings and building improvements 3 – 40 years 179,813 179,014 Furniture & fixtures 2 – 5 years 2,804 2,606 Commercial and Residential Lending Segment (1) Land and land improvements 0 – 7 years 9,691 11,416 Buildings and building improvements 10 – 20 years 9,927 19,251 Construction in progress N/A 75,245 75,245 Properties, cost 2,565,472 2,573,296 Less: accumulated depreciation (320,724) (302,143) Properties, net $ 2,244,748 $ 2,271,153 (1) Represents properties acquired through loan foreclosure or exercise of control over loan borrower pledged equity interests. |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment in Unconsolidated Entities | |
Summary of investments in unconsolidated entities | The table below summarizes our investments in unconsolidated entities as of March 31, 2021 and December 31, 2020 (dollars in thousands): Participation / Carrying value as of Ownership % (1) March 31, 2021 December 31, 2020 Equity method investments: Equity interest in a natural gas power plant 10% $ 24,840 $ 25,095 Investor entity which owns equity in an online real estate company 50% 9,573 9,397 Equity interests in commercial real estate 50% 1,368 1,543 Equity interest in and advances to a residential mortgage originator (2) N/A 18,458 17,852 Various (3) 15% - 50% 16,896 8,831 71,135 62,718 Other equity investments: Equity interest in a servicing and advisory business 2% 17,584 17,584 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 7,267 7,267 Various, including Federal Home Loan Bank stock 0% - 2% 4,921 20,485 29,772 45,336 $ 100,907 $ 108,054 (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 March 31, 2020 and December 31, 2020. (3) In March 2021, we obtained 15% equity interests in two investor entities that own 49% equity interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. As discussed in Note 4, the equity interests in the entertainment and retail centers were transferred under pre-existing equity pledges of additional collateral for the commercial loan. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 (amounts in thousands): As of March 31, 2021 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Value Amortization Value Value Amortization Value Domestic servicing rights, at fair value $ 12,406 $ — $ 12,406 $ 13,202 $ — $ 13,202 In-place lease intangible assets 133,203 (94,726) 38,477 133,203 (92,540) 40,663 Favorable lease intangible assets 24,181 (8,292) 15,889 24,181 (7,929) 16,252 Total net intangible assets $ 169,790 $ (103,018) $ 66,772 $ 170,586 $ (100,469) $ 70,117 |
Summary of activity within intangible assets | The following table summarizes the activity within intangible assets for the three months ended March 31, 2021 (amounts in thousands): Domestic In-place Lease Favorable Lease Servicing Intangible Intangible Rights Assets Assets Total Balance as of January 1, 2021 $ 13,202 $ 40,663 $ 16,252 $ 70,117 Amortization — (2,186) (363) (2,549) Changes in fair value due to changes in inputs and assumptions (796) — — (796) Balance as of March 31, 2021 $ 12,406 $ 38,477 $ 15,889 $ 66,772 |
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 (remainder of) $ 7,094 2022 7,862 2023 6,115 2024 4,722 2025 3,846 Thereafter 24,727 Total $ 54,366 |
Secured Borrowings (Tables)
Secured Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Secured Borrowings | |
Summary of secured financing agreements | The following table is a summary of our secured financing agreements in place as of March 31, 2021 and December 31, 2020 (dollars in thousands): Outstanding Balance at Current Extended Weighted Average Pledged Asset Maximum March 31, December 31, Maturity Maturity (a) Pricing Carrying Value Facility Size 2021 2020 Repurchase Agreements: Commercial Loans May 2021 to Aug 2025 (b) May 2023 to Mar 2029 (b) (c) $ 8,088,081 $ 9,164,525 (d) $ 5,592,652 $ 4,878,939 Residential Loans Jan 2022 to Oct 2023 N/A LIBOR + 2.09% 428,877 1,750,000 328,620 22,590 Infrastructure Loans Feb 2022 N/A LIBOR + 2.00% 295,516 500,000 246,136 232,961 Conduit Loans Feb 2022 to Jun 2023 Feb 2023 to Jun 2024 LIBOR + 2.15% 147,523 350,000 111,087 53,554 CMBS/RMBS Dec 2021 to Oct 2030 (e) Mar 2022 to Apr 2031 (e) (f) 1,112,819 823,365 668,993 (g) 620,763 Total Repurchase Agreements 10,072,816 12,587,890 6,947,488 5,808,807 Other Secured Financing: Borrowing Base Facility Apr 2022 Apr 2024 LIBOR + 2.25% 304,076 650,000 (h) 223,302 43,014 Commercial Financing Facility Mar 2022 Mar 2029 GBP LIBOR + 1.75% 101,559 81,847 81,847 81,218 Residential Financing Facility Sep 2022 Sep 2025 3.50% 163,545 250,000 1,515 215,024 Infrastructure Acquisition Facility Sep 2021 Sep 2022 (i) 525,611 517,498 414,503 467,450 Infrastructure Financing Facilities Jul 2022 to Oct 2022 Oct 2024 to Jul 2027 LIBOR + 2.04% 699,684 1,250,000 548,956 538,645 Property Mortgages - Fixed rate Nov 2024 to Aug 2052 (j) N/A 4.03% 1,271,385 1,155,306 1,155,306 1,077,528 Property Mortgages - Variable rate Nov 2021 to Jul 2030 N/A (k) 929,800 985,453 960,901 960,903 Term Loan and Revolver (l) N/A (l) N/A (l) 763,375 643,375 645,000 Federal Home Loan Bank N/A N/A N/A — — — 396,000 Total Other Secured Financing 3,995,660 5,653,479 4,029,705 4,424,782 $ 14,068,476 $ 18,241,369 10,977,193 10,233,589 Unamortized net discount (13,149) (13,569) Unamortized deferred financing costs (68,112) (73,830) $ 10,895,932 $ 10,146,190 (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 $1.9 billion as of March 31, 2021 are indexed to GBP LIBOR and EURIBOR. The remainder have a weighted average rate of LIBOR + 2.01%. (d) The aggregate initial maximum facility size may be increased at our option, subject to certain conditions. The $9.2 billion amount includes such upsizes. (e) Certain facilities with an outstanding balance of $280.3 million as of March 31, 2021 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 $212.0 million as of March 31, 2021 has a weighted average fixed annual interest rate of 3.29 %. All other facilities are variable rate with a weighted average rate of LIBOR + 1.92%. (g) Includes: (i) $212.0 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $38.3 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 14). (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 6.5 years as of March 31, 2021. (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 643.4 million term loan facility that matures in July 2026, of which $394.0 million has an annual interest rate of LIBOR + 2.50% and $249.4 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 $4.2 billion as of March 31, 2021. |
Schedule of collateralized loan obligations | The following table is a summary of our CLO as of March 31, 2021 and December 31, 2020 (amounts in thousands): Face Carrying Weighted March 31, 2021 Count Amount Value Average Spread Maturity Collateral assets 25 $ 1,099,693 $ 1,099,639 LIBOR + 4.21% (a) May 2024 (b) Financing 1 936,375 931,178 LIBOR + 1.63% (c) July 2038 (d) December 31, 2020 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) (a) Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period. There were no fixed-rate loans financed by the CLO as of March 31, 2021 and December 31, 2020. (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 respective year-to-date period, 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 | Repurchase Other Secured Agreements Financing CLO Total 2021 (remainder of) $ 302,200 $ 58,768 $ — $ 360,968 2022 1,548,791 419,128 — 1,967,919 2023 1,450,262 803,315 — 2,253,577 2024 1,480,044 475,383 — 1,955,427 2025 1,510,607 248,376 — 1,758,983 Thereafter 655,584 2,024,735 936,375 (a) 3,616,694 Total $ 6,947,488 $ 4,029,705 $ 936,375 $ 11,913,568 (a) Assumes utilization of the reinvestment feature. |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Unsecured Senior Notes | |
Schedule of unsecured convertible senior notes outstanding | The following table is a summary of our unsecured senior notes outstanding as of March 31, 2021 and December 31, 2020 (dollars in thousands): Remaining Coupon Effective Maturity Period of Carrying Value at Rate Rate (1) Date Amortization March 31, 2021 December 31, 2020 2021 Senior Notes 5.00 % 5.32 % 12/15/2021 0.7 years $ 700,000 $ 700,000 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 2.6 years 300,000 300,000 2023 Convertible Notes 4.38 % 4.57 % 4/1/2023 2.0 years 250,000 250,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 4.0 years 500,000 500,000 Total principal amount 1,750,000 1,750,000 Unamortized discount—Convertible Notes (910) (2,559) Unamortized discount—Senior Notes (8,356) (9,332) Unamortized deferred financing costs (5,076) (5,589) Carrying amount of debt components $ 1,735,658 $ 1,732,520 Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes N/A $ 3,755 (1) Effective rate includes the effects of underwriter purchase discount. (2) The coupon on the 2025 Senior 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 March 31, 2021 (amounts in thousands, except rates): March 31, 2021 Conversion Conversion Rate (1) Price (2) 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 2023 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2023 Convertible Notes (including the applicable supplemental indenture). (2) As of March 31, 2021, the market price of the Company’s common stock was $24.74. |
Loan Securitization_Sale Acti_2
Loan Securitization/Sale Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 three months ended March 31, 2021 and 2020 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Three Months Ended March 31, 2021 $ 85,037 $ 89,710 $ 383,549 $ 389,798 2020 335,835 352,393 381,279 398,747 |
Commercial and Residential Lending Segment | |
Summary of loans sold and loans transferred as secured borrowings by the Lending segment net of expenses | The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands): Residential Face Amount Proceeds For the Three Months Ended March 31, 2021 $ 89,418 $ 92,419 2020 550 604 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros ("EUR") 2 3,973 EUR November 2022 Fx contracts – Buy Pounds Sterling ("GBP") 8 16,675 GBP April 2021 – July 2022 Fx contracts – Sell EUR 208 252,796 EUR April 2021 – November 2025 Fx contracts – Sell GBP 156 556,798 GBP April 2021 – May 2024 Fx contracts – Sell Australian dollar ("AUD") 19 188,554 AUD August 2021 – June 2022 Interest rate swaps – Paying fixed rates 46 1,791,332 USD May 2023 – April 2031 Interest rate swaps – Receiving fixed rates 1 470,000 USD March 2025 Interest rate caps 22 985,635 USD April 2021 – April 2025 Credit index instruments 3 49,000 USD September 2058 – August 2061 Interest rate swap guarantees 6 371,890 USD March 2022 – June 2025 Total 471 |
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 condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (amounts in thousands): Fair Value of Derivatives Fair Value of Derivatives in an Asset Position (1) as of in a Liability Position (2) as of March 31, December 31, March 31, December 31, 2021 2020 2021 2020 Interest rate contracts $ 25,331 $ 33,841 $ 4 $ 4 Interest rate swap guarantees — — 498 849 Foreign exchange contracts 12,617 6,585 34,002 39,951 Credit index instruments 81 129 301 520 Total derivatives $ 38,029 $ 40,555 $ 34,805 $ 41,324 (1) Classified as derivative assets in our condensed consolidated balance sheets. (2) Classified as derivative liabilities in our condensed consolidated balance sheets. |
Schedule of effect of derivative financial instruments on the consolidated statements of operations and of comprehensive income | The table below presents the effect of our derivative financial instruments on the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 (amounts in thousands): Amount of Gain (Loss) Recognized in Income for the Derivatives Not Designated Location of Gain (Loss) Three Months Ended March 31, as Hedging Instruments Recognized in Income 2021 2020 Interest rate contracts Gain on derivative financial instruments $ 20,158 $ (45,125) Interest rate swap guarantees Gain on derivative financial instruments 351 (675) Foreign exchange contracts Gain on derivative financial instruments 13,602 53,265 Credit index instruments Gain on derivative financial instruments (122) 2,245 $ 33,989 $ 9,710 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 Derivative assets $ 38,029 $ — $ 38,029 $ 11,491 $ 24,235 $ 2,303 Derivative liabilities $ 34,805 $ — $ 34,805 $ 11,491 $ 22,618 $ 696 Repurchase agreements 6,947,488 — 6,947,488 6,947,488 — — $ 6,982,293 $ — $ 6,982,293 $ 6,958,979 $ 22,618 $ 696 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 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 (amounts in thousands): March 31, 2021 December 31, 2020 Assets: Cash and cash equivalents $ — $ 96,998 Loans held-for-investment 1,099,639 1,002,441 Accrued interest receivable 4,068 5,454 Other assets 307 557 Total Assets $ 1,104,014 $ 1,105,450 Liabilities Accounts payable, accrued expenses and other liabilities $ 640 $ 663 Collateralized loan obligations, net 931,178 930,554 Total Liabilities $ 931,818 $ 931,217 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-Controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity and Non-Controlling Interests | |
Schedule of dividends declared by board of directors | During the three months ended March 31, 2021, our board of directors declared the following dividends: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 3/11/21 3/31/21 3/30/21 4/15/21 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 three months ended March 31, 2021 and 2020 (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 (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 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, 2021 1,594,605 2,286,896 3,881,501 $ 17.26 Granted 1,518,072 — 1,518,072 21.81 Vested (633,893) (296,342) (930,235) 17.48 Balance as of March 31, 2021 2,478,784 1,990,554 4,469,338 18.76 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per Share | |
Reconciliation of net income from continuing operations and the number of shares of common stock used in the computation of basic EPS and diluted EPS | The following table provides a reconciliation of net income (loss) and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Three Months Ended March 31, 2021 2020 Basic Earnings (Loss) Income (loss) attributable to STWD common stockholders $ 111,378 $ (66,769) Less: Income attributable to participating shares not already deducted as non-controlling interests (1,925) (1,222) Basic earnings (loss) $ 109,453 $ (67,991) Diluted Earnings (Loss) Income (loss) attributable to STWD common stockholders $ 111,378 $ (66,769) Less: Income attributable to participating shares not already deducted as non-controlling interests (1,925) (1,222) Add: Interest expense on Convertible Notes 2,916 * Diluted earnings (loss) $ 112,369 $ (67,991) Number of Shares: Basic — Average shares outstanding 283,319 280,990 Effect of dilutive securities — Convertible Notes 9,649 * Effect of dilutive securities — Contingently issuable shares 263 — Diluted — Average shares outstanding 293,231 280,990 Earnings (Loss) Per Share Attributable to STWD Common Stockholders: Basic $ 0.39 $ (0.24) Diluted $ 0.38 $ (0.24) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 (Loss) on Foreign Available-for- Currency Sale Securities Translation Total Three Months Ended March 31, 2021 Balance at January 1, 2021 $ 44,057 $ (64) $ 43,993 OCI before reclassifications (2,403) — (2,403) Amounts reclassified from AOCI — 64 64 Net period OCI (2,403) 64 (2,339) Balance at March 31, 2021 $ 41,654 $ — $ 41,654 Three Months Ended March 31, 2020 Balance at January 1, 2020 $ 50,996 $ (64) $ 50,932 OCI before reclassifications (15,048) — (15,048) Amounts reclassified from AOCI — — — Net period OCI (15,048) — (15,048) Balance at March 31, 2020 $ 35,948 $ (64) $ 35,884 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 condensed consolidated balance sheets by their level in the fair value hierarchy as of March 31, 2021 and December 31, 2020 (amounts in thousands): March 31, 2021 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 763,773 $ — $ — $ 763,773 RMBS 160,301 — — 160,301 CMBS 19,256 — — 19,256 Equity security 10,655 10,655 — — Domestic servicing rights 12,406 — — 12,406 Derivative assets 38,029 — 38,029 — VIE assets 62,367,110 — — 62,367,110 Total $ 63,371,530 $ 10,655 $ 38,029 $ 63,322,846 Financial Liabilities: Derivative liabilities $ 34,805 $ — $ 34,805 $ — VIE liabilities 60,896,709 — 58,669,281 2,227,428 Total $ 60,931,514 $ — $ 58,704,086 $ 2,227,428 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 |
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 three months ended March 31, 2021 and 2020 (amounts in thousands): Domestic Loans at Servicing VIE Three Months Ended March 31, 2021 Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2021 balance $ 1,022,979 $ 167,349 $ 19,457 $ 13,202 $ 64,238,328 $ (2,019,876) $ 63,441,439 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale (9,478) — 372 (796) (2,264,591) 65,681 (2,208,812) Net accretion — 2,606 — — — — 2,606 Included in OCI — (2,403) — — — — (2,403) Purchases / Originations 375,270 — — — — — 375,270 Sales (571,927) — — — — — (571,927) Issuances — — — — — (11,604) (11,604) Cash repayments / receipts (53,071) (7,251) (573) — — (1,137) (62,032) Transfers into Level III — — — — — (409,267) (409,267) Transfers out of Level III — — — — — 148,775 148,775 Consolidation of VIEs — — — — 393,373 — 393,373 March 31, 2021 balance $ 763,773 $ 160,301 $ 19,256 $ 12,406 $ 62,367,110 $ (2,227,428) $ 61,095,418 Amount of unrealized gains (losses) attributable to assets still held at March 31, 2021: Included in earnings $ (7,708) $ 2,606 $ 372 $ (796) $ (2,264,591) $ 65,681 $ (2,204,436) Included in OCI $ — $ (2,403) $ — $ — $ — $ — $ (2,403) Domestic Loans at Servicing VIE Three Months Ended March 31, 2020 Fair Value RMBS CMBS Rights VIE Assets Liabilities Total January 1, 2020 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 (16,134) — 5,738 (393) (3,506,792) 146,282 (3,371,299) Net accretion — 2,661 — — — — 2,661 Included in OCI — (15,048) — — — — (15,048) Purchases / Originations 746,880 — — — — — 746,880 Sales (751,746) — (7,940) — — — (759,686) Issuances — — — — — (24,376) (24,376) Cash repayments / receipts (67,397) (6,549) (371) — — (8,916) (83,233) Transfers into Level III — — — — — (101,265) (101,265) Transfers out of Level III — — — — — 1,090,325 1,090,325 Consolidation of VIEs — — — — 2,477,422 (71,095) 2,406,327 March 31, 2020 balance $ 1,347,797 $ 170,640 $ 22,435 $ 16,524 $ 61,157,805 $ (1,506,437) $ 61,208,764 Amount of unrealized (losses) gains attributable to assets still held at March 31, 2020: Included in earnings $ (39,070) $ 2,661 $ (647) $ (393) $ (3,506,792) $ 146,282 $ (3,397,959) Included in OCI $ — $ (15,048) $ — $ — $ — $ — $ (15,048) |
Schedule of fair value of financial instruments not carried at fair value | The following table presents the fair values of our financial instruments not carried at fair value on the condensed consolidated balance sheets (amounts in thousands): March 31, 2021 December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Financial assets not carried at fair value: Loans held-for-investment and loans held-for-sale $ 12,402,351 $ 12,460,388 $ 11,116,929 $ 11,107,316 HTM debt securities 488,075 466,687 538,605 515,253 Financial liabilities not carried at fair value: Secured financing agreements and CLO $ 11,827,110 $ 11,900,381 $ 11,076,744 $ 11,108,364 Unsecured senior notes 1,735,658 1,803,224 1,732,520 1,786,667 |
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) March 31, 2021 Technique Input March 31, 2021 December 31, 2020 Loans under fair value option $ 763,773 Discounted cash flow, market pricing Coupon (d) 3.4% - 9.5% (5.5%) 3.3% - 9.7% (5.9%) Remaining contractual term (d) 7.0 - 39.0 years ( 24.7 years) 7.3 - 39.3 years ( 26.3 years) FICO score (a) 519 - 823 (732) 519 - 823 (727) LTV (b) 15% - 94% (66%) 5% - 94% (68%) Purchase price (d) 85.6% - 104.8% (101.7%) 84.4% - 104.8% (99.8%) RMBS 160,301 Discounted cash flow Constant prepayment rate (a) 3.5% - 17.3% (7.4%) 3.6% - 19.4% (7.6%) Constant default rate (b) 0.7% - 5.0% (2.2%) 0.7% - 5.4% (2.4%) Loss severity (b) 0% - 84% (17%) (f) 0% - 85% (20%) (f) Delinquency rate (c) 9% - 32% (18%) 10% - 32% (19%) Servicer advances (a) 23% - 84% (53%) 23% - 82% (54%) Annual coupon deterioration (b) 0.0% - 1.2% (0.1%) 0.0% - 0.9% (0.1%) Putback amount per projected total collateral loss (e) 0% -17% (0.8%) 0% -17% (0.8%) CMBS 19,256 Discounted cash flow Yield (b) 0% - 298.5% (5.9%) 0% - 536.6% (7.1%) Duration (c) 0 - 7.6 years ( 6.0 years) 0 - 7.6 years ( 5.3 years) Domestic servicing rights 12,406 Discounted cash flow Debt yield (a) 7.25% (7.25%) 7.50% (7.50%) Discount rate (b) 15% (15%) 15% (15%) VIE assets 62,367,110 Discounted cash flow Yield (b) 0% - 752.4% (16.9%) 0% - 312.2% (14.3%) Duration (c) 0 - 20.6 years ( 3.8 years) 0 - 16.3 years ( 3.8 years) VIE liabilities (2,227,428) Discounted cash flow Yield (b) 0% - 752.4% (17.3%) 0% - 312.2% (14.4%) Duration (c) 0 - 11.0 years ( 3.7 years) 0 - 10.8 years ( 3.8 years) (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of March 31, 2021 and 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) 14% and 23% of the portfolio falls within a range of 45% - 80% as of March 31, 2021 and December 31, 2020, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Taxes | |
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 provision (benefit) determined using our statutory federal tax rate to our reported income tax (benefit) provision for the three months ended March 31, 2021 and 2020 (dollars in thousands): For the Three Months Ended March 31, 2021 2020 Federal statutory tax rate $ 26,199 21.0 % $ (15,329) 21.0 % REIT and other non-taxable loss (24,501) (19.6) % 9,914 (13.6) % State income taxes 558 0.4 % (1,779) 2.4 % Federal benefit of state tax deduction (117) (0.1) % 374 (0.5) % Other 91 0.1 % 91 (0.1) % Effective tax rate $ 2,230 1.8 % $ (6,729) 9.2 % |
Segment Data (Tables)
Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Data | |
Schedule of results of operations by business segment | The table below presents our results of operations for the three months ended March 31, 2021 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 $ 170,593 $ 18,808 $ — $ 1,174 $ — $ 190,575 $ — $ 190,575 Interest income from investment securities 18,385 564 — 20,940 — 39,889 (28,279) 11,610 Servicing fees 124 — — 12,456 — 12,580 (4,178) 8,402 Rental income 1,339 — 65,104 9,895 — 76,338 — 76,338 Other revenues 90 93 40 82 — 305 — 305 Total revenues 190,531 19,465 65,144 44,547 — 319,687 (32,457) 287,230 Costs and expenses: Management fees 315 — — 222 38,188 38,725 11 38,736 Interest expense 44,295 8,841 15,832 5,449 29,148 103,565 (191) 103,374 General and administrative 11,333 3,442 1,023 18,440 4,311 38,549 87 38,636 Acquisition and investment pursuit costs 185 — — — — 185 — 185 Costs of rental operations 477 — 23,960 4,308 — 28,745 — 28,745 Depreciation and amortization 307 100 18,100 3,967 — 22,474 — 22,474 Credit loss (reversal) provision, net (529) 573 — — — 44 — 44 Other expense 31 — 583 71 — 685 — 685 Total costs and expenses 56,414 12,956 59,498 32,457 71,647 232,972 (93) 232,879 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 39,745 39,745 Change in fair value of servicing rights — — — 745 — 745 (1,541) (796) Change in fair value of investment securities, net (2,050) — — 7,170 — 5,120 (5,426) (306) Change in fair value of mortgage loans, net (10,714) — — 1,236 — (9,478) — (9,478) Earnings (loss) from unconsolidated entities 1,753 (254) — 589 — 2,088 (354) 1,734 Gain on sale of investments and other assets, net 17,693 — — — — 17,693 — 17,693 Gain (loss) on derivative financial instruments, net 26,141 684 4,724 9,283 (6,843) 33,989 — 33,989 Foreign currency (loss) gain, net (11,594) (49) 25 (63) — (11,681) — (11,681) Loss on extinguishment of debt (68) (307) (141) — — (516) — (516) Other income, net — 21 — — — 21 — 21 Total other income (loss) 21,161 95 4,608 18,960 (6,843) 37,981 32,424 70,405 Income (loss) before income taxes 155,278 6,604 10,254 31,050 (78,490) 124,696 60 124,756 Income tax provision (1,505) (92) — (633) — (2,230) — (2,230) Net income (loss) 153,773 6,512 10,254 30,417 (78,490) 122,466 60 122,526 Net income attributable to non-controlling interests (3) — (5,077) (6,008) — (11,088) (60) (11,148) Net income (loss) attributable to Starwood Property Trust, Inc . $ 153,770 $ 6,512 $ 5,177 $ 24,409 $ (78,490) $ 111,378 $ — $ 111,378 The table below presents our results of operations for the three months ended March 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 $ 192,381 $ 22,413 $ — $ 2,633 $ — $ 217,427 $ — $ 217,427 Interest income from investment securities 18,628 701 — 24,800 — 44,129 (28,889) 15,240 Servicing fees 172 — — 6,442 — 6,614 (1,821) 4,793 Rental income 78 — 63,961 10,107 — 74,146 — 74,146 Other revenues 178 143 122 513 — 956 (2) 954 Total revenues 211,437 23,257 64,083 44,495 — 343,272 (30,712) 312,560 Costs and expenses: Management fees 351 — — 239 40,107 40,697 31 40,728 Interest expense 53,950 13,117 17,121 7,194 28,805 120,187 (162) 120,025 General and administrative 8,132 4,423 1,078 20,684 4,301 38,618 84 38,702 Acquisition and investment pursuit costs 860 17 12 20 — 909 — 909 Costs of rental operations 778 — 22,852 4,584 — 28,214 — 28,214 Depreciation and amortization 415 70 19,288 4,207 — 23,980 — 23,980 Credit loss provision, net 40,217 8,452 — — — 48,669 — 48,669 Other expense 77 — 311 — — 388 — 388 Total costs and expenses 104,780 26,079 60,662 36,928 73,213 301,662 (47) 301,615 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — (45,493) (45,493) Change in fair value of servicing rights — — — 318 — 318 (711) (393) Change in fair value of investment securities, net (27,879) — — (47,216) — (75,095) 77,599 2,504 Change in fair value of mortgage loans, net (35,517) — — 19,383 — (16,134) — (16,134) Earnings (loss) from unconsolidated entities 51 — — 620 — 671 (574) 97 Gain on sale of investments and other assets, net — 296 — — — 296 — 296 Gain (loss) on derivative financial instruments, net 30,805 (1,001) (30,223) (19,106) 29,235 9,710 — 9,710 Foreign currency (loss) gain, net (34,001) (473) (19) 7 — (34,486) — (34,486) Loss on extinguishment of debt — (170) — — — (170) — (170) Other income, net — — 50 76 — 126 — 126 Total other income (loss) (66,541) (1,348) (30,192) (45,918) 29,235 (114,764) 30,821 (83,943) Income (loss) before income taxes 40,116 (4,170) (26,771) (38,351) (43,978) (73,154) 156 (72,998) Income tax benefit 4,422 145 — 2,162 — 6,729 — 6,729 Net income (loss) 44,538 (4,025) (26,771) (36,189) (43,978) (66,425) 156 (66,269) Net (income) loss attributable to non-controlling interests (3) — (5,111) 4,770 — (344) (156) (500) Net income (loss) attributable to Starwood Property Trust, Inc . $ 44,535 $ (4,025) $ (31,882) $ (31,419) $ (43,978) $ (66,769) $ — $ (66,769) |
Schedule of consolidated balance sheet by business segment | The table below presents our condensed consolidated balance sheet as of March 31, 2021 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 $ 56,629 $ 7,873 $ 39,791 $ 29,064 $ 217,049 $ 350,406 $ 784 $ 351,190 Restricted cash 69,882 27,973 6,672 14,197 — 118,724 — 118,724 Loans held-for-investment, net 10,733,752 1,586,808 — 933 — 12,321,493 — 12,321,493 Loans held-for-sale 587,037 89,368 — 168,226 — 844,631 — 844,631 Investment securities 969,968 34,951 — 1,106,000 — 2,110,919 (1,432,632) 678,287 Properties, net 93,718 — 1,954,880 196,150 — 2,244,748 — 2,244,748 Intangible assets — — 38,833 70,857 — 109,690 (42,918) 66,772 Investment in unconsolidated entities 47,514 24,840 — 44,435 — 116,789 (15,882) 100,907 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Derivative assets 13,088 — 162 320 24,459 38,029 — 38,029 Accrued interest receivable 97,853 3,310 — 274 408 101,845 (132) 101,713 Other assets 61,677 7,107 85,740 44,719 9,646 208,889 (16) 208,873 VIE assets, at fair value — — — — — — 62,367,110 62,367,110 Total Assets $ 12,731,118 $ 1,901,639 $ 2,126,078 $ 1,815,612 $ 251,562 $ 18,826,009 $ 60,876,314 $ 79,702,323 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 37,206 $ 16,010 $ 44,184 $ 24,110 $ 56,614 $ 178,124 $ 91 $ 178,215 Related-party payable — — — — 36,135 36,135 — 36,135 Dividends payable — — — — 138,906 138,906 — 138,906 Derivative liabilities 33,190 1,310 — 305 — 34,805 — 34,805 Secured financing agreements, net 6,502,059 1,259,813 1,871,026 653,222 631,655 10,917,775 (21,843) 10,895,932 Collateralized loan obligations, net 931,178 — — — — 931,178 — 931,178 Unsecured senior notes, net — — — — 1,735,658 1,735,658 — 1,735,658 VIE liabilities, at fair value — — — — — — 60,896,709 60,896,709 Total Liabilities 7,503,633 1,277,133 1,915,210 677,637 2,598,968 13,972,581 60,874,957 74,847,538 Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 2,943 2,943 — 2,943 Additional paid-in capital 1,074,553 599,666 25,905 (298,098) 3,823,011 5,225,037 — 5,225,037 Treasury stock — — — — (138,022) (138,022) — (138,022) Accumulated other comprehensive income 41,654 — — — — 41,654 — 41,654 Retained earnings (accumulated deficit) 4,111,160 24,840 (40,641) 1,285,229 (6,035,338) (654,750) — (654,750) Total Starwood Property Trust, Inc. Stockholders’ Equity 5,227,367 624,506 (14,736) 987,131 (2,347,406) 4,476,862 — 4,476,862 Non-controlling interests in consolidated subsidiaries 118 — 225,604 150,844 — 376,566 1,357 377,923 Total Equity 5,227,485 624,506 210,868 1,137,975 (2,347,406) 4,853,428 1,357 4,854,785 Total Liabilities and Equity $ 12,731,118 $ 1,901,639 $ 2,126,078 $ 1,815,612 $ 251,562 $ 18,826,009 $ 60,876,314 $ 79,702,323 The table below presents our condensed 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 |
Business and Organization (Deta
Business and Organization (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
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 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
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 | |||
Retained Earnings (Accumulated Deficit). | $ (654,750) | $ (629,733) | ||
ASU 2016-13 | Reclassification Adjustment | ||||
Credit Losses | ||||
Allowance for credit losses | $ 32,300 | |||
ASU 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | ||||
Fair Value Measurements | ||||
Additional paid-in capital | $ (3,700) | |||
Retained Earnings (Accumulated Deficit). | $ (2,200) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Sale of operating property - (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Acquisitions and Divestitures | |||
Loan carrying value | $ 13,238,408,000 | $ 12,217,352,000 | |
Unpaid principal balance | 13,301,495,000 | 12,262,840,000 | |
Allowance | 72,284,000 | $ 77,444,000 | |
Proceeds from sale of operating properties | $ 0 | ||
Operating properties | Commercial and Residential Lending Segment | |||
Acquisitions and Divestitures | |||
Loan carrying value | 9,000,000 | ||
Unpaid principal balance | 20,900,000 | ||
Allowance | 8,300,000 | ||
Unamortized discount | 3,600,000 | ||
Proceeds from sale of operating properties | 30,600,000 | ||
Gain on sale of property | $ 17,700,000 |
Loans - Held for Investment (De
Loans - Held for Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Investments in loans | ||||
Total gross loans | $ 13,238,408 | $ 12,217,352 | ||
Face Amount | 13,301,495 | 12,262,840 | ||
Total allowance | (72,284) | (77,444) | ||
Carrying Value | 13,166,124 | 12,139,908 | $ 11,663,870 | $ 11,470,224 |
Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 12,393,777 | 11,164,517 | ||
Face Amount | 12,461,952 | 11,230,344 | ||
Total allowance | (72,284) | (77,444) | ||
Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 844,631 | 1,052,835 | ||
Face Amount | 839,543 | 1,032,496 | ||
Carrying Value | 844,631 | 1,052,835 | 1,174,934 | 884,150 |
Commercial Portfolio Segment | ||||
Investments in loans | ||||
Total gross loans | 10,647,450 | |||
Reclassification to held-for-sale | 142,200 | |||
Loans with no related allowance | 29,000 | |||
Commercial Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 10,647,450 | 9,653,560 | ||
Face Amount | 10,695,832 | 9,703,608 | ||
Total allowance | (63,477) | (69,611) | ||
Carrying Value | 10,583,973 | 9,583,949 | 8,832,907 | 8,517,054 |
Infrastructure Portfolio Segment | ||||
Investments in loans | ||||
Total gross loans | 1,595,615 | |||
Reclassification to held for investment | 30,700 | |||
Infrastructure Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 1,595,615 | 1,420,273 | ||
Face Amount | $ 1,616,716 | $ 1,439,940 | ||
Weighted Average Life | 4 years 1 month 6 days | 4 years 3 months 18 days | ||
Total allowance | $ (8,807) | $ (7,833) | ||
Carrying Value | $ 1,586,808 | $ 1,412,440 | 1,381,271 | 1,397,448 |
Infrastructure Portfolio Segment | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 4.30% | 4.40% | ||
Infrastructure Portfolio Segment | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 89,368 | $ 120,540 | ||
Face Amount | $ 89,601 | $ 120,900 | ||
Weighted Average Life | 2 years 7 months 6 days | 3 years 2 months 12 days | ||
Infrastructure Portfolio Segment | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 2.90% | 3.10% | ||
Residential Portfolio Segment | ||||
Investments in loans | ||||
Total gross loans | $ 150,712 | |||
Weighted Average Life | 28 years 10 months 24 days | 27 years 10 months 24 days | ||
Reclassification to held for investment | $ 69,500 | |||
Residential Portfolio Segment | Total loans held-for-investment | ||||
Investments in loans | ||||
Carrying Value | 150,712 | $ 90,684 | $ 274,758 | $ 671,572 |
RMBS, fair value option | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | 444,835 | 841,963 | ||
Face Amount | $ 435,025 | $ 820,807 | ||
RMBS, fair value option | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.70% | 6.00% | ||
CMBS, fair value option | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 310,428 | $ 90,332 | ||
Face Amount | $ 314,917 | $ 90,789 | ||
Weighted Average Life | 5 years 8 months 12 days | 10 years | ||
CMBS, fair value option | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 4.30% | 3.90% | ||
First mortgage loan participation | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 9,955,674 | |||
Face Amount | $ 10,003,057 | |||
Weighted Average Life | 1 year 8 months 12 days | |||
First mortgage loan participation | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.10% | |||
First mortgage loan participation | Loans held-for-sale | ||||
Investments in loans | ||||
Total gross loans | $ 8,931,772 | |||
Face Amount | $ 8,978,373 | |||
Weighted Average Life | 1 year 6 months | |||
First mortgage loan participation | Loans held-for-sale | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 5.30% | |||
Subordinated mortgages | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 70,457 | $ 71,185 | ||
Face Amount | $ 71,428 | $ 72,257 | ||
Weighted Average Life | 2 years 6 months | 2 years 9 months 18 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 | $ 917,800 | $ 877,300 | ||
Mezzanine Loans | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | 603,119 | 620,319 | ||
Face Amount | $ 601,080 | $ 619,352 | ||
Weighted Average Life | 1 year 4 months 24 days | 1 year 7 months 6 days | ||
Mezzanine Loans | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 10.10% | 10.10% | ||
Other | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 18,200 | $ 30,284 | ||
Face Amount | $ 20,267 | $ 33,626 | ||
Weighted Average Life | 2 years 7 months 6 days | 1 year 9 months 18 days | ||
Other | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 8.20% | 8.90% | ||
Residential loans, fair value option | Total loans held-for-investment | ||||
Investments in loans | ||||
Total gross loans | $ 150,712 | $ 90,684 | ||
Face Amount | $ 149,404 | $ 86,796 | ||
Residential loans, fair value option | Total loans held-for-investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon (as a percent) | 6.20% | 6.00% | ||
Commercial loans, fair value option | ||||
Investments in loans | ||||
Total gross loans | $ 168,226 |
Loans - Variable Rate Loans Hel
Loans - Variable Rate Loans Held for Investment (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Variable rate loans held-for-investment | |
Total variable rate loans held-for-investment, carrying value | $ 11,565,002 |
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 | $ 9,969,387 |
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 | $ 1,595,615 |
Weighted average spread of loans (as a percent) | 3.80% |
Loans - Ratings (Details)
Loans - Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Investments in loans | |||
Loans Amortized Cost Basis | $ 13,238,408 | $ 12,217,352 | |
Credit Loss Allowance | 72,284 | ||
Past due loan converted to equity interests | 7,300 | ||
Commercial Loans | |||
Investments in loans | |||
Nonaccrual status | 187,600 | ||
Infrastructure Loans | |||
Investments in loans | |||
Nonaccrual status | 14,800 | ||
Total loans held-for-investment | |||
Investments in loans | |||
Loans Amortized Cost Basis | 12,393,777 | 11,164,517 | |
Total loans held-for-investment | First mortgage loan participation | |||
Investments in loans | |||
Loans Amortized Cost Basis | 9,955,674 | ||
Total loans held-for-investment | Subordinated mortgages | |||
Investments in loans | |||
Loans Amortized Cost Basis | 70,457 | 71,185 | |
Total loans held-for-investment | Mezzanine Loans | |||
Investments in loans | |||
Loans Amortized Cost Basis | 603,119 | 620,319 | |
Total loans held-for-investment | Residential loans, fair value option | |||
Investments in loans | |||
Loans Amortized Cost Basis | 150,712 | 90,684 | |
Total loans held-for-investment | Other | |||
Investments in loans | |||
Loans Amortized Cost Basis | 18,200 | 30,284 | |
Loans held-for-sale | |||
Investments in loans | |||
Loans Amortized Cost Basis | 844,631 | 1,052,835 | |
Loans held-for-sale | First mortgage loan participation | |||
Investments in loans | |||
Loans Amortized Cost Basis | 8,931,772 | ||
Commercial Portfolio Segment | |||
Investments in loans | |||
2021 | 2,011,344 | ||
2020 | 1,430,494 | ||
2019 | 3,444,432 | ||
2018 | 2,392,775 | ||
2017 | 769,143 | ||
Prior | 599,262 | ||
Loans Amortized Cost Basis | 10,647,450 | ||
Credit Loss Allowance | 63,477 | ||
Loans with no related allowance | 29,000 | ||
Commercial Portfolio Segment | 90 days or greater past due | |||
Investments in loans | |||
Loans Amortized Cost Basis | 187,600 | ||
Commercial Portfolio Segment | LTV Less than 60% | |||
Investments in loans | |||
2021 | 1,152,309 | ||
2020 | 709,735 | ||
2019 | 1,314,912 | ||
2018 | 1,225,605 | ||
2017 | 729,227 | ||
Prior | 425,570 | ||
Loans Amortized Cost Basis | 5,557,358 | ||
Credit Loss Allowance | 7,015 | ||
Commercial Portfolio Segment | LTV 60% - 70% | |||
Investments in loans | |||
2021 | 859,035 | ||
2020 | 480,542 | ||
2019 | 1,530,002 | ||
2018 | 825,212 | ||
2017 | 39,916 | ||
Prior | 82,088 | ||
Loans Amortized Cost Basis | 3,816,795 | ||
Credit Loss Allowance | 31,535 | ||
Commercial Portfolio Segment | LTV > 70% | |||
Investments in loans | |||
2020 | 240,217 | ||
2019 | 599,518 | ||
2018 | 312,972 | ||
Prior | 61,426 | ||
Loans Amortized Cost Basis | 1,214,133 | ||
Credit Loss Allowance | 16,661 | ||
Commercial Portfolio Segment | Credit deteriorated | |||
Investments in loans | |||
2018 | 28,986 | ||
Prior | 11,977 | ||
Loans Amortized Cost Basis | $ 41,000 | 40,963 | |
Credit Loss Allowance | 8,266 | ||
Commercial Portfolio Segment | Defeased and other | |||
Investments in loans | |||
Prior | 18,201 | ||
Loans Amortized Cost Basis | 18,201 | ||
Commercial Portfolio Segment | Total loans held-for-investment | |||
Investments in loans | |||
Loans Amortized Cost Basis | 10,647,450 | 9,653,560 | |
Infrastructure Portfolio Segment | |||
Investments in loans | |||
2020 | 97,427 | ||
2019 | 488,628 | ||
2018 | 498,422 | ||
2017 | 124,959 | ||
Prior | 371,072 | ||
Revolving Loans Amortized Cost Total | 15,107 | ||
Loans Amortized Cost Basis | 1,595,615 | ||
Credit Loss Allowance | 8,807 | ||
Infrastructure Portfolio Segment | Power | |||
Investments in loans | |||
2020 | 77,525 | ||
2019 | 220,901 | ||
2018 | 397,619 | ||
2017 | 124,959 | ||
Prior | 371,072 | ||
Revolving Loans Amortized Cost Total | 10,057 | ||
Loans Amortized Cost Basis | 1,202,133 | ||
Credit Loss Allowance | 5,074 | ||
Infrastructure Portfolio Segment | Oil and gas | |||
Investments in loans | |||
2020 | 19,902 | ||
2019 | 267,727 | ||
2018 | 100,803 | ||
Revolving Loans Amortized Cost Total | 5,050 | ||
Loans Amortized Cost Basis | 393,482 | ||
Credit Loss Allowance | 3,733 | ||
Infrastructure Portfolio Segment | Total loans held-for-investment | |||
Investments in loans | |||
Loans Amortized Cost Basis | 1,595,615 | 1,420,273 | |
Infrastructure Portfolio Segment | Loans held-for-sale | |||
Investments in loans | |||
Loans Amortized Cost Basis | 89,368 | $ 120,540 | |
Residential Portfolio Segment | |||
Investments in loans | |||
Loans Amortized Cost Basis | 150,712 | ||
Residential Portfolio Segment | 90 days or greater past due | |||
Investments in loans | |||
Loans Amortized Cost Basis | $ 20,200 |
Loans - Activity in Portfolio (
Loans - Activity in Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | $ 77,444 | |
Credit loss allowance at the end of the period | 72,284 | |
Activity in loan portfolio | ||
Balance at the beginning of the period | 12,139,908 | $ 11,470,224 |
Acquisitions/origination/additional funding | 2,671,394 | 1,898,905 |
Capitalized Interest | 36,646 | 36,072 |
Basis of loans sold | (571,927) | (789,863) |
Loan maturities/principal repayments | (1,092,984) | (796,323) |
Discount accretion/premium amortization | 16,745 | 12,080 |
Changes in fair value | (9,478) | (16,134) |
Unrealized foreign currency translation (loss) gain | (14,263) | (87,319) |
Credit loss provision, net | (2,597) | (43,332) |
Transfer to/from other asset classifications | (7,320) | |
Balance at the end of the period | 13,166,124 | 11,663,870 |
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 | 77,444 | |
Credit loss allowance at the end of the period | 72,284 | |
Loans held-for-sale | ||
Activity in loan portfolio | ||
Balance at the beginning of the period | 1,052,835 | 884,150 |
Acquisitions/origination/additional funding | 375,270 | 646,160 |
Basis of loans sold | (571,927) | (789,259) |
Loan maturities/principal repayments | (44,326) | (20,680) |
Discount accretion/premium amortization | 110 | |
Changes in fair value | (9,188) | 9,485 |
Unrealized foreign currency translation (loss) gain | (4,056) | |
Transfer to/from other asset classifications | 41,967 | 449,024 |
Balance at the end of the period | 844,631 | 1,174,934 |
Funded commitments | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 77,444 | |
Credit loss provision (reversal), net | 2,597 | |
Charge-offs | (7,757) | |
Credit loss allowance at the end of the period | 72,284 | |
Unfunded commitments | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 6,070 | |
Credit loss provision (reversal), net | (2,265) | |
Credit loss allowance at the end of the period | 3,805 | |
Unfunded commitments | 1,357,095 | |
Commercial Portfolio Segment | Total loans held-for-investment | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 69,611 | |
Credit loss allowance at the end of the period | 63,477 | |
Activity in loan portfolio | ||
Balance at the beginning of the period | 9,583,949 | 8,517,054 |
Acquisitions/origination/additional funding | 2,196,813 | 1,089,096 |
Capitalized Interest | 36,646 | 36,072 |
Loan maturities/principal repayments | (1,021,393) | (689,972) |
Discount accretion/premium amortization | 15,824 | 11,559 |
Unrealized foreign currency translation (loss) gain | (14,082) | (83,263) |
Credit loss provision, net | (1,880) | (37,527) |
Transfer to/from other asset classifications | (211,904) | |
Balance at the end of the period | 10,583,973 | 8,832,907 |
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 | 69,611 | |
Credit loss provision (reversal), net | 1,880 | |
Charge-offs | (7,757) | |
Transfers | (257) | |
Credit loss allowance at the end of the period | 63,477 | |
Commercial Portfolio Segment | Unfunded commitments | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 5,258 | |
Credit loss provision (reversal), net | (2,122) | |
Credit loss allowance at the end of the period | 3,136 | |
Unfunded commitments | 1,291,304 | |
Infrastructure Portfolio Segment | Total loans held-for-investment | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 7,833 | |
Credit loss allowance at the end of the period | 8,807 | |
Activity in loan portfolio | ||
Balance at the beginning of the period | 1,412,440 | 1,397,448 |
Acquisitions/origination/additional funding | 99,311 | 62,929 |
Loan maturities/principal repayments | (18,055) | (37,051) |
Discount accretion/premium amortization | 921 | 411 |
Unrealized foreign currency translation (loss) gain | (181) | |
Credit loss provision, net | (717) | (5,805) |
Transfer to/from other asset classifications | 93,089 | (26,333) |
Balance at the end of the period | 1,586,808 | 1,381,271 |
Infrastructure Portfolio Segment | Total loans held-for-investment | ASU 2016-13 | ||
Activity in loan portfolio | ||
Loan maturities/principal repayments | (10,328) | |
Infrastructure Portfolio Segment | Funded commitments | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 7,833 | |
Credit loss provision (reversal), net | 717 | |
Transfers | 257 | |
Credit loss allowance at the end of the period | 8,807 | |
Infrastructure Portfolio Segment | Unfunded commitments | ||
Activity in allowance for loan losses | ||
Credit loss allowance at the beginning of the period | 812 | |
Credit loss provision (reversal), net | (143) | |
Credit loss allowance at the end of the period | 669 | |
Unfunded commitments | 65,791 | |
Residential Portfolio Segment | Total loans held-for-investment | ||
Activity in loan portfolio | ||
Balance at the beginning of the period | 90,684 | 671,572 |
Acquisitions/origination/additional funding | 100,720 | |
Basis of loans sold | (604) | |
Loan maturities/principal repayments | (9,210) | (48,620) |
Changes in fair value | (290) | (25,619) |
Transfer to/from other asset classifications | 69,528 | (422,691) |
Balance at the end of the period | $ 150,712 | $ 274,758 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Investment Securities | |||
Investment securities | $ 678,287 | $ 736,658 | |
Credit Loss Allowance | 5,387 | 5,675 | |
Purchases | $ 5,729 | ||
Sales | 7,940 | ||
Principal collections | 59,514 | 13,559 | |
VIE eliminations | |||
Investment Securities | |||
Purchases | (27,333) | (36,953) | |
Sales | (11,604) | (24,376) | |
Principal collections | (14,481) | (24,723) | |
Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | $ 2,110,919 | 2,162,228 | |
Available-for-sale | One-month LIBOR | |||
Investment Securities | |||
Effective variable rate basis (as a percent) | 0.111% | ||
Fair value option | |||
Investment Securities | |||
Fair Value | $ 1,500 | ||
Fair value option | VIE eliminations | |||
Investment Securities | |||
Investment securities | (1,432,632) | (1,425,570) | |
Held-to-maturity | |||
Investment Securities | |||
Credit Loss Allowance | 5,387 | 5,675 | |
Purchases | 5,729 | ||
Principal collections | 51,690 | 6,638 | |
Held-to-maturity | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 488,075 | 538,605 | |
RMBS | |||
Investment Securities | |||
Portion of securities with variable rate | 139,400 | ||
RMBS | Available-for-sale | |||
Investment Securities | |||
Principal collections | 7,251 | 6,549 | |
Purchase Amortized Cost | 118,647 | 123,292 | |
Recorded Amortized Cost | 118,647 | 123,292 | |
Gross Unrealized Gains | 41,688 | 44,123 | |
Gross Unrealized Losses | (34) | (66) | |
Net Fair Value Adjustment | 41,654 | 44,057 | |
Fair Value | $ 160,301 | 167,349 | |
Portion of securities with variable rate (as a percent) | 87.00% | ||
Cost of third party management | $ 300 | 400 | |
RMBS | Available-for-sale | B- | |||
Investment Securities | |||
Weighted Average Coupon (as a percent) | 1.20% | ||
WAL (Years) | 5 years 10 months 24 days | ||
RMBS | Available-for-sale | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | $ 160,301 | 167,349 | |
RMBS | Fair value option | |||
Investment Securities | |||
Purchases | 27,333 | 29,292 | |
Principal collections | 13,344 | 8,572 | |
Portion of securities with variable rate | 0 | ||
RMBS | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 249,005 | 235,997 | |
CMBS | Fair value option | |||
Investment Securities | |||
Purchases | 7,661 | ||
Sales | 11,604 | 32,316 | |
Principal collections | 1,710 | $ 16,523 | |
Portion of securities with variable rate | 96,900 | ||
CMBS | Fair value option | Non-Controlling Interests | |||
Investment Securities | |||
Investment securities | 180,900 | 179,500 | |
CMBS | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 1,202,883 | 1,209,030 | |
Equity security | Fair value option | Before consolidation of securitization VIEs | |||
Investment Securities | |||
Investment securities | 10,655 | 11,247 | |
Infrastructure bonds | |||
Investment Securities | |||
Credit Loss Allowance | $ 2,925 | $ 2,926 |
Investment Securities - AFS and
Investment Securities - AFS and Fair Value Option (Details) $ in Thousands | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security |
Unrealized Losses | ||
Number of securities with unrealized losses | security | 1 | 2 |
RMBS | ||
Estimated Fair Value | ||
Securities with a loss less than 12 months | $ 438 | |
Securities with a loss greater than 12 months | $ 1,170 | 1,195 |
Unrealized Losses | ||
Securities with a loss less than 12 months | (25) | |
Securities with a loss greater than 12 months | (34) | $ (41) |
Portion of securities with variable rate | 139,400 | |
RMBS | Fair value option | ||
Unrealized Losses | ||
Fair value of investment securities before consolidation of VIEs | 249,000 | |
Unpaid principal balance of investment securities before consolidation of VIEs | 160,100 | |
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 | 2,700,000 | |
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 | $ 19,300 |
Investment Securities - HTM (De
Investment Securities - HTM (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
HTM Securities | |||
Amortized Cost Basis | $ 493,462 | $ 544,280 | |
Credit Loss Allowance | $ (5,387) | (5,387) | (5,675) |
Net Carrying Amount | 488,075 | 538,605 | |
Gross Unrealized Holdings Gains | 3,781 | 847 | |
Gross Unrealized Holdings Losses | (25,169) | (24,199) | |
Fair Value | 466,687 | 515,253 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 5,675 | ||
Credit loss provision, net | (288) | ||
Credit loss allowance at ending | 5,387 | ||
HTM preferred equity interests | |||
Less than one year | 313,863 | ||
One to three years | 139,261 | ||
Thereafter | 34,951 | ||
Total | 488,075 | 538,605 | |
CMBS | |||
HTM Securities | |||
Amortized Cost Basis | 339,120 | 339,059 | |
Net Carrying Amount | 339,120 | 339,059 | |
Gross Unrealized Holdings Losses | (25,169) | (23,286) | |
Fair Value | 313,951 | 315,773 | |
HTM preferred equity interests | |||
Less than one year | 313,863 | ||
One to three years | 25,257 | ||
Total | 339,120 | 339,059 | |
Preferred interests | |||
HTM Securities | |||
Amortized Cost Basis | 116,466 | 166,614 | |
Credit Loss Allowance | (2,462) | (2,462) | (2,749) |
Net Carrying Amount | 114,004 | 163,865 | |
Gross Unrealized Holdings Gains | 3,346 | 432 | |
Gross Unrealized Holdings Losses | (913) | ||
Fair Value | 117,350 | 163,384 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 2,749 | ||
Credit loss provision, net | (287) | ||
Credit loss allowance at ending | 2,462 | ||
HTM preferred equity interests | |||
One to three years | 114,004 | ||
Total | 114,004 | 163,865 | |
Infrastructure bonds | |||
HTM Securities | |||
Amortized Cost Basis | 37,876 | 38,607 | |
Credit Loss Allowance | (2,925) | (2,925) | (2,926) |
Net Carrying Amount | 34,951 | 35,681 | |
Gross Unrealized Holdings Gains | 435 | 415 | |
Fair Value | 35,386 | 36,096 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 2,926 | ||
Credit loss provision, net | (1) | ||
Credit loss allowance at ending | $ 2,925 | ||
HTM preferred equity interests | |||
Thereafter | 34,951 | ||
Total | $ 34,951 | $ 35,681 |
Investment Securities - SEREF (
Investment Securities - SEREF (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2012 | Dec. 31, 2020 | |
Residential Real Estate | |||
Fair value of the investment | $ 29,772 | $ 45,336 | |
SEREF | |||
Residential Real Estate | |||
Number of shares acquired | 9,140,000 | ||
Fair value of the investment | $ 10,700 | $ 11,200 | |
Ownership percentage | 2.00% |
Properties (Details)
Properties (Details) ft² in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | 24 Months Ended | |||||
Dec. 31, 2017item | Sep. 30, 2017ft²property | Mar. 31, 2021USD ($)itemproperty | Mar. 31, 2020USD ($) | Dec. 31, 2018item | Dec. 31, 2016ft²item | Dec. 31, 2015item | Dec. 31, 2018item | Dec. 31, 2016ft²item | Dec. 31, 2020USD ($) | |
Summary of properties | ||||||||||
Properties, cost | $ 2,565,472,000 | $ 2,573,296,000 | ||||||||
Less: accumulated depreciation | (320,724,000) | (302,143,000) | ||||||||
Properties, net | 2,244,748,000 | 2,271,153,000 | ||||||||
Proceeds from sale of operating properties | $ 0 | |||||||||
Property Segment | ||||||||||
Summary of properties | ||||||||||
Land and land improvements | 485,026,000 | 484,846,000 | ||||||||
Buildings and building improvements | 1,691,423,000 | 1,690,701,000 | ||||||||
Furniture & fixtures | $ 60,926,000 | 59,632,000 | ||||||||
Property Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 0 years | |||||||||
Building and building improvements, useful life | 5 years | |||||||||
Furniture & fixtures, useful life | 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 | ||||||||||
Summary of properties | ||||||||||
Land and land improvements | $ 50,617,000 | 50,585,000 | ||||||||
Buildings and building improvements | 179,813,000 | 179,014,000 | ||||||||
Furniture & fixtures | $ 2,804,000 | 2,606,000 | ||||||||
Investing and Servicing Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 0 years | |||||||||
Building and building improvements, useful life | 3 years | |||||||||
Furniture & fixtures, useful life | 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 | |||||||||
Commercial and Residential Lending Segment | ||||||||||
Summary of properties | ||||||||||
Land and land improvements | $ 9,691,000 | 11,416,000 | ||||||||
Buildings | 9,927,000 | 19,251,000 | ||||||||
Construction in progress | $ 75,245,000 | $ 75,245,000 | ||||||||
Commercial and Residential Lending Segment | Minimum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 0 years | |||||||||
Building and building improvements, useful life | 10 years | |||||||||
Commercial and Residential Lending Segment | Maximum | ||||||||||
Summary of properties | ||||||||||
Land and land improvements, useful life | 7 years | |||||||||
Building and building improvements, useful life | 20 years | |||||||||
Commercial and Residential Lending Segment | Operating properties | ||||||||||
Summary of properties | ||||||||||
Proceeds from sale of operating properties | $ 30,600,000 | |||||||||
Gain on sale of property | $ 17,700,000 | |||||||||
Woodstar Portfolio | ||||||||||
Properties | ||||||||||
Number of properties in portfolio investment | item | 32 | 32 | ||||||||
Total gross properties and lease intangibles | $ 636,700,000 | |||||||||
Debt | $ 572,800,000 | |||||||||
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 | item | 27 | |||||||||
Total gross properties and lease intangibles | $ 610,600,000 | |||||||||
Debt | $ 512,600,000 | |||||||||
Number of units in portfolio investment | item | 6,109 | |||||||||
Number of acquired properties closed | item | 8 | 19 | 27 | |||||||
Medical Office Portfolio | ||||||||||
Properties | ||||||||||
Area of property | ft² | 1.9 | 1.9 | ||||||||
Total gross properties and lease intangibles | $ 760,300,000 | |||||||||
Debt | 592,900,000 | |||||||||
Number of acquired properties closed | item | 34 | |||||||||
Master Lease Portfolio | ||||||||||
Properties | ||||||||||
Total gross properties and lease intangibles | 343,800,000 | |||||||||
Debt | 192,800,000 | |||||||||
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 | |||||||||
REIS Equity Portfolio | ||||||||||
Properties | ||||||||||
Total gross properties and lease intangibles | 270,400,000 | |||||||||
Debt | $ 192,600,000 | |||||||||
Number of retail properties acquired | property | 15 | |||||||||
Number of equity interests in unconsolidated commercial real estate properties | property | 1 | |||||||||
Utah, Florida, Texas and Minnesota | Master Lease Portfolio | Geographic Concentration Risk | Minimum | Retail Properties [Member] | ||||||||||
Properties | ||||||||||
Concentration risk (as a percent) | 50.00% |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021USD ($)itementity | Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Investment in Unconsolidated Entities | ||||
Equity method, Carrying value | $ 71,135 | $ 71,135 | $ 62,718 | |
Number of publicly traded investments | item | 0 | 0 | ||
Fair value of the investment | $ 29,772 | $ 29,772 | 45,336 | |
Investment in unconsolidated entities | 100,907 | 100,907 | 108,054 | |
Capital distribution | 15,980 | $ 153 | ||
Carrying value over (under) equity in net assets | 0 | 0 | ||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 100,907 | $ 100,907 | 108,054 | |
Equity interest in a natural gas power plant | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 10.00% | 10.00% | ||
Equity method, Carrying value | $ 24,840 | $ 24,840 | 25,095 | |
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 | $ 9,573 | $ 9,573 | 9,397 | |
Equity interests in commercial real estate | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | ||
Equity method, Carrying value | $ 1,368 | $ 1,368 | 1,543 | |
Equity interest in a residential mortgage originator | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Carrying value | 18,458 | 18,458 | 17,852 | |
Carrying value over (under) equity in net assets | 1,600 | 1,600 | ||
Equity interest in a residential mortgage originator | Subordinated Loans | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Carrying value | $ 4,500 | $ 4,500 | 4,500 | |
Various - Equity method | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 15.00% | 15.00% | ||
Equity method, Carrying value | $ 16,896 | $ 16,896 | $ 8,831 | |
Investment in unconsolidated entities | $ 7,300 | 7,300 | ||
Percentage Of Equity Interest Owned By Investor Entities | 49.00% | |||
Equity Method Investments, Number Of Investor Entities | entity | 2 | |||
Number Of Shopping Malls | item | 2 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 7,300 | $ 7,300 | ||
Various - Equity method | Minimum | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 15.00% | 15.00% | 15.00% | |
Various - Equity method | Maximum | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 50.00% | 50.00% | 50.00% | |
Equity interest in a servicing and advisory business | ||||
Investment in Unconsolidated Entities | ||||
Equity method, Participation / Ownership % | 2.00% | 2.00% | ||
Fair value of the investment | $ 17,584 | $ 17,584 | $ 17,584 | |
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 | $ 7,267 | $ 7,267 | |
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% | 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% | 6.00% | |
Various | ||||
Investment in Unconsolidated Entities | ||||
Fair value of the investment | $ 4,921 | $ 4,921 | $ 20,485 | |
Various | Minimum | ||||
Investment in Unconsolidated Entities | ||||
Cost method, Ownership % | 0.00% | 0.00% | 0.00% | |
Various | Maximum | ||||
Investment in Unconsolidated Entities | ||||
Cost method, Ownership % | 2.00% | 2.00% | 2.00% |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
Goodwill | $ 259,846 | $ 259,846 |
Summary of Intangible Assets | ||
Gross Carrying Value | 169,790 | 170,586 |
Accumulated Amortization | (103,018) | (100,469) |
Net Carrying Value | 66,772 | 70,117 |
In-place lease | ||
Summary of Intangible Assets | ||
Gross Carrying Value | 133,203 | 133,203 |
Accumulated Amortization | (94,726) | (92,540) |
Net Carrying Value | 38,477 | 40,663 |
Favorable lease | ||
Summary of Intangible Assets | ||
Gross Carrying Value | 24,181 | 24,181 |
Accumulated Amortization | (8,292) | (7,929) |
Net Carrying Value | 15,889 | 16,252 |
Domestic Servicing Rights | ||
Summary of Intangible Assets | ||
Gross Carrying Value | 12,406 | 13,202 |
Net Carrying Value | 12,406 | 13,202 |
Domestic Servicing Rights | Before consolidation of securitization VIEs | ||
Intangible Assets | ||
Servicing rights intangibles | 55,300 | 54,600 |
Domestic Servicing Rights | VIE eliminations | ||
Intangible Assets | ||
Servicing rights intangibles | 42,900 | 41,400 |
Infrastructure Lending Segment | ||
Intangible Assets | ||
Goodwill | 119,400 | 119,400 |
Investing and Servicing Segment | ||
Intangible Assets | ||
Goodwill | $ 140,400 | $ 140,400 |
Goodwill and Intangibles - Acti
Goodwill and Intangibles - Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Summary of activity within intangible assets | |
Balance as of beginning of period | $ 70,117 |
Amortization | (2,549) |
Changes in fair value due to changes in inputs and assumptions | (796) |
Balance as of end of period | 66,772 |
Future rental payments due to us from tenants under existing non-cancellable operating leases | |
2021 (remainder of) | 7,094 |
2022 | 7,862 |
2023 | 6,115 |
2024 | 4,722 |
2025 | 3,846 |
Thereafter | 24,727 |
Total | 54,366 |
In-place lease | |
Summary of activity within intangible assets | |
Balance as of beginning of period | 40,663 |
Amortization | (2,186) |
Balance as of end of period | 38,477 |
Favorable lease | |
Summary of activity within intangible assets | |
Balance as of beginning of period | 16,252 |
Amortization | (363) |
Balance as of end of period | 15,889 |
Domestic Servicing Rights | |
Summary of activity within intangible assets | |
Balance as of beginning of period | 13,202 |
Changes in fair value due to changes in inputs and assumptions | (796) |
Balance as of end of period | $ 12,406 |
Secured Borrowings (Details)
Secured Borrowings (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Aug. 31, 2019 | |
Secured Borrowings | |||||
Carrying Value | $ 10,895,932 | $ 10,146,190 | |||
Maximum borrowing capacity | $ 375,000 | 1,000,000 | |||
Payment of debt | 2,001,336 | $ 1,923,754 | |||
Revolving credit facility | |||||
Secured Borrowings | |||||
Equity interests in certain subsidiaries used to secure facilities | 4,200,000 | ||||
Maximum borrowing capacity | $ 120,000 | ||||
Revolving credit facility | LIBOR | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 3.00% | ||||
Residential Repurchase Facility | One-month LIBOR | |||||
Secured Borrowings | |||||
Floor interest rate (as a percent) | 0.25% | ||||
Residential Repurchase Facility | One-month LIBOR | Maximum | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.50% | ||||
Spread (as a percent) | 2.50% | ||||
Woodstar I Portfolio | |||||
Secured Borrowings | |||||
Maximum borrowing capacity | $ 82,900 | ||||
Maturity period | 7 years | ||||
Payment of debt | $ 4,900 | ||||
Woodstar I Portfolio | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 4.36% | ||||
Spread (as a percent) | 4.36% | ||||
Revolving Credit Agreement | |||||
Secured Borrowings | |||||
Maximum Facility Size | $ 300,000 | ||||
Maximum facility size subject to certain conditions | $ 650,000 | ||||
Infrastructure Acquisition Facility | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.00% | ||||
Spread (as a percent) | 2.00% | ||||
Property Mortgages - Fixed rate | |||||
Secured Borrowings | |||||
Maturity period | 6 years 6 months | ||||
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 | $ 643,400 | ||||
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 | $ 394,000 | ||||
Spread (as a percent) | 2.50% | ||||
Term loan facility | LIBOR + 3.50% | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 3.50% | ||||
Maximum borrowing capacity | $ 249,400 | ||||
Spread (as a percent) | 3.50% | ||||
Commercial Loans | |||||
Secured Borrowings | |||||
Maximum Facility Size | $ 9,200,000 | ||||
Carrying Value | $ 1,900,000 | ||||
Commercial Loans | LIBOR | Weighted-average | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 2.01% | ||||
CMBS/RMBS | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 3.29% | ||||
Carrying Value | $ 212,000 | ||||
Amount outstanding on a repurchase facility not subject to margin calls | 212,000 | ||||
Amount outstanding on repurchase facility | $ 38,300 | ||||
Pro rata share owned by a non-controlling partner in a consolidated joint venture | 49.00% | ||||
CMBS/RMBS | LIBOR | Weighted-average | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 1.92% | ||||
CMBS/RMBS | Certain Facilities | |||||
Secured Borrowings | |||||
Carrying Value | $ 280,300 | ||||
Rolling maturity period | 11 months | ||||
Maturity period | 12 months | ||||
Secured Borrowings | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 14,068,476 | ||||
Maximum Facility Size | 18,241,369 | ||||
Principal Amount | 10,977,193 | 10,233,589 | |||
Unamortized net discount | (13,149) | (13,569) | |||
Unamortized deferred financing costs | (68,112) | (73,830) | |||
Carrying Value | 10,895,932 | 10,146,190 | |||
Secured Borrowings | Residential Repurchase Facility | |||||
Secured Borrowings | |||||
Maturity period | 1 year | ||||
Secured Borrowings | Residential Repurchase Facility | One-month LIBOR | Minimum | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.00% | ||||
Spread (as a percent) | 2.00% | ||||
Secured Borrowings | Other Secured Financing | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 3,995,660 | ||||
Maximum Facility Size | 5,653,479 | ||||
Principal Amount | 4,029,705 | 4,424,782 | |||
Secured Borrowings | Revolving Credit Agreement | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 304,076 | ||||
Maximum Facility Size | 650,000 | ||||
Principal Amount | $ 223,302 | 43,014 | |||
Secured Borrowings | Revolving Credit Agreement | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.25% | ||||
Spread (as a percent) | 2.25% | ||||
Secured Borrowings | Commercial Financing Facility | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 101,559 | ||||
Maximum Facility Size | 81,847 | ||||
Principal Amount | $ 81,847 | 81,218 | |||
Secured Borrowings | Commercial Financing Facility | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 1.75% | ||||
Spread (as a percent) | 1.75% | ||||
Secured Borrowings | Residential Financing Facility | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 3.50% | ||||
Pledged Asset Carrying Value | $ 163,545 | ||||
Maximum Facility Size | 250,000 | ||||
Principal Amount | 1,515 | 215,024 | |||
Secured Borrowings | Infrastructure Acquisition Facility | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 525,611 | ||||
Maximum Facility Size | 517,498 | ||||
Principal Amount | 414,503 | 467,450 | |||
Secured Borrowings | Infrastructure Financing Facilities | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 699,684 | ||||
Maximum Facility Size | 1,250,000 | ||||
Principal Amount | $ 548,956 | 538,645 | |||
Secured Borrowings | Infrastructure Financing Facilities | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.04% | ||||
Spread (as a percent) | 2.04% | ||||
Secured Borrowings | Property Mortgages - Fixed rate | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 4.03% | ||||
Pledged Asset Carrying Value | $ 1,271,385 | ||||
Maximum Facility Size | 1,155,306 | ||||
Principal Amount | 1,155,306 | 1,077,528 | |||
Secured Borrowings | Property Mortgages - Variable rate | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 929,800 | ||||
Maximum Facility Size | 985,453 | ||||
Principal Amount | $ 960,901 | 960,903 | |||
Secured Borrowings | Property Mortgages - Variable rate | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.59% | ||||
Spread (as a percent) | 2.59% | ||||
Secured Borrowings | Term Loan and Revolver | |||||
Secured Borrowings | |||||
Maximum Facility Size | $ 763,375 | ||||
Principal Amount | 643,375 | 645,000 | |||
Secured Borrowings | FHLB | |||||
Secured Borrowings | |||||
Principal Amount | 396,000 | ||||
Secured Borrowings | First Mortgage And Mezzanine | |||||
Secured Borrowings | |||||
Principal Amount | $ 600,000 | ||||
Secured Borrowings | First Mortgage And Mezzanine | LIBOR | |||||
Secured Borrowings | |||||
Interest rate (as a percent) | 3.34% | ||||
Secured Borrowings | First Mortgage And Mezzanine | LIBOR | Weighted-average | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.07% | ||||
Spread (as a percent) | 2.07% | ||||
Secured Borrowings | Repurchase Agreements | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 10,072,816 | ||||
Maximum Facility Size | 12,587,890 | ||||
Principal Amount | 6,947,488 | 5,808,807 | |||
Secured Borrowings | Commercial Loans | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 8,088,081 | ||||
Maximum Facility Size | 9,164,525 | ||||
Principal Amount | 5,592,652 | 4,878,939 | |||
Secured Borrowings | Residential Loans | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | 428,877 | ||||
Maximum Facility Size | 1,750,000 | ||||
Principal Amount | $ 328,620 | 22,590 | |||
Secured Borrowings | Residential Loans | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.09% | ||||
Spread (as a percent) | 2.09% | ||||
Secured Borrowings | Infrastructure Loans | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 295,516 | ||||
Maximum Facility Size | 500,000 | ||||
Principal Amount | $ 246,136 | 232,961 | |||
Secured Borrowings | Infrastructure Loans | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.00% | ||||
Spread (as a percent) | 2.00% | ||||
Secured Borrowings | Conduit Loans | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 147,523 | ||||
Maximum Facility Size | 350,000 | ||||
Principal Amount | $ 111,087 | 53,554 | |||
Secured Borrowings | Conduit Loans | LIBOR | |||||
Secured Borrowings | |||||
Pricing margin (as a percent) | 2.15% | ||||
Spread (as a percent) | 2.15% | ||||
Secured Borrowings | CMBS/RMBS | |||||
Secured Borrowings | |||||
Pledged Asset Carrying Value | $ 1,112,819 | ||||
Maximum Facility Size | 823,365 | ||||
Principal Amount | $ 668,993 | $ 620,763 |
Secured Borrowings - Repurchase
Secured Borrowings - Repurchase Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Secured Borrowings | ||
Secured Borrowings | ||
Amortization of deferred financing costs | $ 9.5 | $ 8.8 |
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) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2019USD ($) | Mar. 31, 2021USD ($)item | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)item | |
Summary of CLO | ||||
Carrying value | $ 931,178 | $ 930,554 | ||
LIBOR | Collateral assets | ||||
Summary of CLO | ||||
Spread (as a percent) | 4.21% | 3.93% | ||
LIBOR | Financing | ||||
Summary of CLO | ||||
Spread (as a percent) | 1.63% | 1.64% | ||
Collateralized Loan Obligation | ||||
Summary of CLO | ||||
Amount issued | $ 1,100,000 | |||
Principal Amount | 86,600 | |||
Liquidation preference | 77,000 | |||
Incurred debt issuance costs | 9,200 | |||
Amortization of deferred financing costs | $ 600 | $ 600 | ||
Deferred financing costs, net of amortization | 5,200 | $ 5,800 | ||
Principal amount of notes purchased by third-party investors | $ 936,400 | |||
Additional Contribution to CLO | $ 98,600 | |||
Collateralized Loan Obligation | Collateral assets | ||||
Summary of CLO | ||||
Count | item | 25 | 23 | ||
Amount issued | $ 1,099,693 | $ 1,002,445 | ||
Carrying value | $ 1,099,639 | $ 1,099,439 | ||
Collateralized Loan Obligation | Financing | ||||
Summary of CLO | ||||
Count | item | 1 | 1 | ||
Amount issued | $ 936,375 | $ 936,375 | ||
Carrying value | $ 931,178 | $ 930,554 |
Secured Borrowings - Principal
Secured Borrowings - Principal Repayments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Collateralized Loan Obligation | |
Repayment of secured financings | |
Thereafter | $ 936,375 |
Total | 936,375 |
Secured Borrowings | |
Repayment of secured financings | |
2021 (remainder of) | 360,968 |
2022 | 1,967,919 |
2023 | 2,253,577 |
2024 | 1,955,427 |
2025 | 1,758,983 |
Thereafter | 3,616,694 |
Total | 11,913,568 |
Repurchase Agreements | |
Repayment of secured financings | |
2021 (remainder of) | 302,200 |
2022 | 1,548,791 |
2023 | 1,450,262 |
2024 | 1,480,044 |
2025 | 1,510,607 |
Thereafter | 655,584 |
Total | 6,947,488 |
Other Secured Financing | |
Repayment of secured financings | |
2021 (remainder of) | 58,768 |
2022 | 419,128 |
2023 | 803,315 |
2024 | 475,383 |
2025 | 248,376 |
Thereafter | 2,024,735 |
Total | $ 4,029,705 |
Unsecured Senior Notes (Details
Unsecured Senior Notes (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($)item$ / shares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 29, 2017USD ($) | |
Unsecured Senior Notes | ||||
Interest expense | $ 103,374,000 | $ 120,025,000 | ||
Add: Loss on extinguishment of Convertible Notes | (516,000) | (170,000) | ||
Principal amount of notes, basis for conversion | $ 1,000 | |||
Closing share price (in dollars per share) | $ / shares | $ 24.74 | |||
Conversion upon satisfaction of closing market price condition | Minimum | ||||
Unsecured Senior Notes | ||||
Period of average closing market price of common stock as a basis for debt conversion | 10 days | |||
2021 Senior Notes 5.00% | ||||
Unsecured Senior Notes | ||||
Coupon Rate (as a percent) | 5.00% | |||
Effective Rate (as a percent) | 5.32% | |||
Remaining Period of Amortization | 8 months 12 days | |||
Principal Amount | $ 700,000,000 | $ 700,000,000 | ||
Senior Notes 2023 | ||||
Unsecured Senior Notes | ||||
Coupon Rate (as a percent) | 5.50% | |||
Effective Rate (as a percent) | 5.71% | |||
Remaining Period of Amortization | 2 years 7 months 6 days | |||
Principal Amount | $ 300,000,000 | 300,000,000 | ||
2023 Convertible Notes | ||||
Unsecured Senior Notes | ||||
Coupon Rate (as a percent) | 4.38% | 4.375% | ||
Effective Rate (as a percent) | 4.57% | |||
Remaining Period of Amortization | 2 years | |||
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 | $ 24.74 | |||
If-converted value | $ 238,700,000 | |||
Amount by which if-converted value of the Notes are less than principal amount | 11,300,000 | |||
Convertible notes fair value | 255,800,000 | |||
Convertible notes carrying value | $ 248,600,000 | |||
2025 Senior Notes | ||||
Unsecured Senior Notes | ||||
Coupon Rate (as a percent) | 4.75% | |||
Effective Rate (as a percent) | 5.04% | |||
Remaining Period of Amortization | 4 years | |||
Principal Amount | $ 500,000,000 | 500,000,000 | ||
2025 Senior Notes | LIBOR | ||||
Unsecured Senior Notes | ||||
Pricing margin (as a percent) | 2.53% | |||
Principal Amount | $ 470,000,000 | |||
Unsecured Senior Notes | ||||
Unsecured Senior Notes | ||||
Principal Amount | 1,750,000,000 | 1,750,000,000 | ||
Unamortized deferred financing costs | (5,076,000) | (5,589,000) | ||
Carrying amount of conversion option equity components recorded in additional paid-in capital for outstanding convertible notes | 3,755,000 | |||
Carrying amount of debt components | 1,735,658,000 | 1,732,520,000 | ||
Convertible Senior Notes | ||||
Unsecured Senior Notes | ||||
Unamortized discount | (910,000) | (2,559,000) | ||
Interest expense | $ 2,900,000 | $ 3,000,000 | ||
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% | |||
Senior Notes | ||||
Unsecured Senior Notes | ||||
Unamortized discount | $ (8,356,000) | $ (9,332,000) | ||
Convertible Notes and 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% |
Loan Securitization_Sale Acti_3
Loan Securitization/Sale Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investing and Servicing Segment | Loans held-for-sale, commercial | ||
Loan Transfer Activities | ||
Face Amount | $ 85,037 | $ 335,835 |
Proceeds | 89,710 | 352,393 |
Investing and Servicing Segment | Loans held-for-sale, residential | ||
Loan Transfer Activities | ||
Face Amount | 383,549 | 381,279 |
Proceeds | 389,798 | 398,747 |
Commercial and Residential Lending Segment | Loans held-for-sale, residential | ||
Loan Transfers Accounted for as Sales | ||
Face Amount | 89,418 | 550 |
Proceeds | $ 92,419 | 604 |
Infrastructure Lending Segment | ||
Loan Transfer Activities | ||
Face Amount | 38,700 | |
Proceeds | 38,400 | |
Loan Transfers Accounted for as Sales | ||
Net gains (losses) on the sale of loan qualifying for sales treatment | $ 300 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | Mar. 31, 2021EUR (€)item | Mar. 31, 2021USD ($)item | Mar. 31, 2021GBP (£)item | Mar. 31, 2021AUD ($)item |
Derivatives | ||||
Number of contracts | 471 | 471 | 471 | 471 |
Foreign exchange contracts | EUR | Long | ||||
Derivatives | ||||
Number of contracts | 2 | 2 | 2 | 2 |
Aggregate notional amount | € | € 3,973 | |||
Foreign exchange contracts | EUR | Short | ||||
Derivatives | ||||
Number of contracts | 208 | 208 | 208 | 208 |
Aggregate notional amount | € | € 252,796 | |||
Foreign exchange contracts | AUD | Short | ||||
Derivatives | ||||
Number of contracts | 19 | 19 | 19 | 19 |
Aggregate notional amount | $ | $ 188,554 | |||
Foreign exchange contracts | GBP | Long | ||||
Derivatives | ||||
Number of contracts | 8 | 8 | 8 | 8 |
Aggregate notional amount | $ | $ 16,675 | |||
Foreign exchange contracts | GBP | Short | ||||
Derivatives | ||||
Number of contracts | 156 | 156 | 156 | 156 |
Aggregate notional amount | £ | £ 556,798 | |||
Interest rate swaps - Paying fixed rates | USD | ||||
Derivatives | ||||
Number of contracts | 46 | 46 | 46 | 46 |
Aggregate notional amount | $ | $ 1,791,332 | |||
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 | $ | $ 371,890 | |||
Interest rate caps | USD | ||||
Derivatives | ||||
Number of contracts | 22 | 22 | 22 | 22 |
Aggregate notional amount | $ | $ 985,635 | |||
Credit spread instrument | USD | ||||
Derivatives | ||||
Number of contracts | 3 | 3 | 3 | 3 |
Aggregate notional amount | $ | $ 49,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 38,029 | $ 40,555 |
Fair Value of Derivatives in a Liability Position | 34,805 | 41,324 |
Interest rate swaps | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 25,331 | 33,841 |
Fair Value of Derivatives in a Liability Position | 4 | 4 |
Interest Rate Swap Guarantees | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in a Liability Position | 498 | 849 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 12,617 | 6,585 |
Fair Value of Derivatives in a Liability Position | 34,002 | 39,951 |
Credit spread instrument | Derivatives not designated as hedging instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 81 | 129 |
Fair Value of Derivatives in a Liability Position | $ 301 | $ 520 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives | ||
Gain on derivative financial instruments | $ 33,989 | $ 9,710 |
Interest rate swaps | ||
Derivatives | ||
Gain on derivative financial instruments | 20,158 | (45,125) |
Interest rate swap guarantees | ||
Derivatives | ||
Gain on derivative financial instruments | 351 | (675) |
Foreign exchange contracts | ||
Derivatives | ||
Gain on derivative financial instruments | 13,602 | 53,265 |
Credit spread instrument | ||
Derivatives | ||
Gain on derivative financial instruments | $ (122) | $ 2,245 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position | $ 38,029 | $ 40,555 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,982,293 | 5,850,131 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 6,982,293 | 5,850,131 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 6,958,979 | 5,815,523 |
Cash Collateral Pledged | 22,618 | 27,416 |
Net Amount | 696 | 7,192 |
Derivatives | ||
Assets | ||
Gross Amounts of Recognized Assets | 38,029 | 40,555 |
Net Amounts of Assets Presented in the Statement of Financial Position | 38,029 | 40,555 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 11,491 | 6,716 |
Cash Collateral Received | 24,235 | 33,772 |
Net Amount | 2,303 | 67 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 34,805 | 41,324 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 34,805 | 41,324 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | 11,491 | 6,716 |
Cash Collateral Pledged | 22,618 | 27,416 |
Net Amount | 696 | 7,192 |
Repurchase Agreements | ||
Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,947,488 | 5,808,807 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 6,947,488 | 5,808,807 |
Gross Amounts Not Offset in the Statement of Financial Position | ||
Financial Instruments | $ 6,947,488 | $ 5,808,807 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated CLO (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 351,190 | $ 563,217 |
Loans held-for-investment, net | 12,321,493 | 11,087,073 |
Accrued interest receivable | 101,713 | 95,980 |
Other assets | 208,873 | 190,748 |
Total Assets | 79,702,323 | 80,873,509 |
Accounts payable, accrued expenses and other liabilities | 178,215 | 206,845 |
Collateralized loan obligations, net | 931,178 | 930,554 |
Liabilities | 74,847,538 | 76,010,933 |
Primary beneficiary | ||
Assets: | ||
Total Assets | 62,367,110 | 64,238,328 |
Liabilities | 60,896,709 | 62,776,371 |
Collateralized Loan Obligation | Primary beneficiary | ||
Assets: | ||
Cash and cash equivalents | 96,998 | |
Total Assets | 1,104,014 | 1,105,450 |
Liabilities | 931,818 | 931,217 |
Accounts payable, accrued expenses and other liabilities | 640 | 663 |
Loans held-for-investment, net | 1,099,639 | 1,002,441 |
Collateralized loan obligations, net | 931,178 | 930,554 |
Accrued interest receivable | 4,068 | 5,454 |
Other assets | $ 307 | $ 557 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)item | Mar. 31, 2021USD ($)item | |
Variable interest entities | ||
Total Assets | $ 80,873,509 | $ 79,702,323 |
Total Liabilities | 76,010,933 | $ 74,847,538 |
Number of collateralized debt obligation | item | 0 | |
Investment in unconsolidated entities | 108,054 | $ 100,907 |
CMBS JV | ||
Variable interest entities | ||
Ownership percentage | 51.00% | |
Primary beneficiary | ||
Variable interest entities | ||
Total Assets | 64,238,328 | $ 62,367,110 |
Total Liabilities | $ 62,776,371 | 60,896,709 |
Primary beneficiary | ASU 2015-02 | ||
Variable interest entities | ||
Total Assets | 98,700 | |
Total Liabilities | 53,800 | |
Primary beneficiary | CMBS Venture Holdings | ||
Variable interest entities | ||
Total Assets | 335,400 | |
Total Liabilities | 78,900 | |
Primary beneficiary | SPT Dolphin | ASU 2015-02 | ||
Variable interest entities | ||
Total Assets | 685,400 | |
Total Liabilities | $ 520,600 | |
Not primary beneficiary | ||
Variable interest entities | ||
Number of CDO structures currently in default | item | 5 | |
Number of CDO structures | item | 5 | 6 |
Number of CDO structures that entered default during the period | item | 2 | |
Maximum risk of loss related to VIEs, on fair value basis | $ 19,300 | |
Not primary beneficiary | ASU 2015-02 | Measurement Period Adjustments | ||
Variable interest entities | ||
Investment in unconsolidated entities | 25,700 | |
Not primary beneficiary | Securitization SPEs | ||
Variable interest entities | ||
Debt obligations to beneficial interest holders, unpaid principal balances | $ 3,900,000 |
Related-Party Transactions (Det
Related-Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Nov. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2018 | Mar. 31, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related-Party Transactions | |||||||
Granted (in shares) | 1,518,072 | ||||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | |||||||
Related-Party Transactions | |||||||
Granted (in shares) | 1,800,000 | 1,200,000 | 775,000 | 1,000,000 | |||
Award vesting period | 3 years | 3 years | 3 years | ||||
Share-based compensation expense, before tax | $ 5.9 | $ 5.2 | |||||
Manager | |||||||
Related-Party Transactions | |||||||
Base management fee incurred | 19.2 | 19.1 | |||||
Base management fee payable | 19.2 | ||||||
Incentive fee incurred | 13.1 | 15.8 | |||||
Incentive fees payable | 13.1 | $ 15 | |||||
Executive compensation and other reimbursable expenses | 1.5 | $ 2.2 | |||||
Executive compensation and other reimbursable expense payable | $ 3.8 | $ 5 | |||||
Manager | RSAs | |||||||
Related-Party Transactions | |||||||
Granted (in shares) | 981,951 | 341,635 | |||||
Grant date fair value | $ 19.6 | $ 3.9 | |||||
Share-based compensation expense, before tax | $ 2.4 | $ 1.1 | |||||
Manager | Starwood Property Trust, Inc. Manager Equity Plan | RSAs | |||||||
Related-Party Transactions | |||||||
Award vesting period | 3 years | 3 years |
Related-Party Transactions - In
Related-Party Transactions - Investments in Loans and Securities and Other Arrangements (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2020ft²$ / ft² | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Apr. 30, 2020USD ($) | |
Related-Party Transactions | ||||
Acquisitions and originations of mortgage financing | $ 2,671,394 | $ 1,898,905 | ||
Highmark Residential | ||||
Related-Party Transactions | ||||
Payments to related party | 700 | $ 500 | ||
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 | 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 | 141,600 | |||
Loan Purchase Commitment | $ 27,400 |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-Controlling Interests (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Stockholders' Equity | |||||
Dividend declared (in dollars per share) | $ 0.48 | $ 0.48 | |||
Shares issued under ATM Agreement | 0 | 0 | |||
Repurchase of common stock | $ 28,830 | ||||
Net income attributable to non-controlling interests | $ 11,148 | 500 | |||
Investment securities | 678,287 | $ 736,658 | |||
Accrued interest receivable | 101,713 | 95,980 | |||
Payment to acquire non-controlling interest | $ 8,833 | 66,476 | |||
CMBS JV | |||||
Stockholders' Equity | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | ||||
Class A Units | |||||
Stockholders' Equity | |||||
Number of units outstanding | 10,600,000 | ||||
Value of shares issued to settle redemption | $ 100 | ||||
CMBS JV | |||||
Stockholders' Equity | |||||
Non-controlling interest | 132,400 | $ 126,700 | |||
CMBS JV | Joint Venture Partner | |||||
Stockholders' Equity | |||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||
Woodstar II Portfolio | Class A Units | |||||
Stockholders' Equity | |||||
Net income attributable to non-controlling interests | $ 5,100 | ||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | |||||
Stockholders' Equity | |||||
Shares issued | 10,200,000 | ||||
Right to receive additional shares | 1,900,000 | 1,900,000 | |||
Number of common stock per unit | 1 | ||||
Woodstar II Portfolio | Class A Units | SPT Dolphin | Non-Controlling Interests | |||||
Stockholders' Equity | |||||
Redemption of units | 225,600,000 | 226,700,000 | |||
Woodstar II Portfolio | CMBS JV | Class A Units | |||||
Stockholders' Equity | |||||
Net income attributable to non-controlling interests | $ 5,400 | $ (6,000) |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Nov. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2018 | Mar. 31, 2017 | Mar. 31, 2021 | May 31, 2017 | |
Equity Incentive Plans | ||||||
Granted (in shares) | 1,518,072 | |||||
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 | 3,200,000 | |||||
Starwood Property Trust, Inc. Equity Plan | ||||||
Equity Incentive Plans | ||||||
Granted (in shares) | 1,518,072 | |||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | ||||||
Equity Incentive Plans | ||||||
Granted (in shares) | 1,800,000 | 1,200,000 | 775,000 | 1,000,000 | ||
Awards granted, fair value | $ 30,078 | $ 29,484 | $ 16,329 | $ 22,240 | ||
Award vesting period | 3 years | 3 years | 3 years | |||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | Vested immediately on the grant date | ||||||
Equity Incentive Plans | ||||||
Granted (in shares) | 218,898 | |||||
Starwood Property Trust, Inc. Manager Equity Plan | Restricted stock units | Remaining vesting | ||||||
Equity Incentive Plans | ||||||
Award vesting period | 3 years |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Non-Vested Shares and Share Equivalents activity | |
Balance at the beginning of the period (in shares) | 3,881,501 |
Granted (in shares) | 1,518,072 |
Vested (in shares) | (930,235) |
Balance at the end of the period (in shares) | 4,469,338 |
Weighted Average Grant Date Fair Value (per share) | |
Balance at the beginning of period (in dollars per share) | $ / shares | $ 17.26 |
Granted (in dollars per share) | $ / shares | 21.81 |
Vested (in dollars per share) | $ / shares | 17.48 |
Balance at the end of period (in dollars per share) | $ / shares | $ 18.76 |
Starwood Property Trust, Inc. Equity Plan | |
Non-Vested Shares and Share Equivalents activity | |
Balance at the beginning of the period (in shares) | 1,594,605 |
Granted (in shares) | 1,518,072 |
Vested (in shares) | (633,893) |
Balance at the end of the period (in shares) | 2,478,784 |
Starwood Property Trust, Inc. Manager Equity Plan | |
Non-Vested Shares and Share Equivalents activity | |
Balance at the beginning of the period (in shares) | 2,286,896 |
Vested (in shares) | (296,342) |
Balance at the end of the period (in shares) | 1,990,554 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Continuing Operations: | ||
Basic - Income (loss) attributable to STWD common stockholders | $ 111,378 | $ (66,769) |
Less: Income attributable to participating shares not already deducted as non-controlling interests | (1,925) | (1,222) |
Basic earnings (loss) | 109,453 | (67,991) |
Continuing Operations: | ||
Basic - Income (loss) attributable to STWD common stockholders | 111,378 | (66,769) |
Less: Income attributable to participating shares not already deducted as non-controlling interests | (1,925) | (1,222) |
Add: Loss on extinguishment of Convertible Notes | (516) | (170) |
Diluted earnings (loss) | $ 112,369 | $ (67,991) |
Number of Shares: | ||
Basic - Average shares outstanding | 283,319 | 280,990 |
Effect of dilutive securities - Contingently issuable shares (in shares) | 263 | |
Diluted - Average shares outstanding | 293,231 | 280,990 |
Basic: | ||
Basic (in dollars per share) | $ 0.39 | $ (0.24) |
Diluted: | ||
Diluted (in dollars per share) | $ 0.38 | $ (0.24) |
Convertible Senior Notes | ||
Continuing Operations: | ||
Add: Interest expense on Convertible Notes | $ 2,916 | |
Number of Shares: | ||
Effect of dilutive securities - Convertible Notes (in shares) | 9,649 |
Earnings per Share - Dilutive a
Earnings per Share - Dilutive and Antidilutive securities (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | |
Restricted stock | ||
Antidilutive securities and effect of dilutive securities | ||
Number of anti-dilutive common shares excluded from the calculation of diluted income per share | 14.6 | 13.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in AOCI by component | ||
Beginning balance | $ 43,993 | $ 50,932 |
OCI before reclassifications | (2,403) | (15,048) |
Amounts reclassified from AOCI | 64 | |
Net period OCI | (2,339) | (15,048) |
Ending balance | 41,654 | 35,884 |
Cumulative Unrealized Gain (Loss) on Available-for-Sale Securities | ||
Changes in AOCI by component | ||
Beginning balance | 44,057 | 50,996 |
OCI before reclassifications | (2,403) | (15,048) |
Net period OCI | (2,403) | (15,048) |
Ending balance | 41,654 | 35,948 |
Foreign Currency Translation | ||
Changes in AOCI by component | ||
Beginning balance | (64) | (64) |
Amounts reclassified from AOCI | 64 | |
Net period OCI | $ 64 | |
Ending balance | $ (64) |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets and liabilities measured at fair value | ||
Permitted reinvestment under static investment in VIEs | $ 0 | |
Marketable securities | 678,287 | $ 736,658 |
Domestic servicing rights | 12,406 | 13,202 |
Derivative assets | 38,029 | 40,555 |
Total Assets | 79,702,323 | 80,873,509 |
Total Liabilities | 74,847,538 | 76,010,933 |
Derivative liabilities | 34,805 | 41,324 |
Fair value measurements on recurring basis | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 38,029 | 40,555 |
Total Assets | 63,371,530 | 65,513,117 |
Derivative liabilities | 34,805 | 41,324 |
Total Liabilities | 60,931,514 | 62,817,695 |
Fair value measurements on recurring basis | Loans held-for-sale | ||
Assets and liabilities measured at fair value | ||
Loans held-for-sale, fair value option | 763,773 | 1,022,979 |
Fair value measurements on recurring basis | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 160,301 | 167,349 |
Fair value measurements on recurring basis | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 19,256 | 19,457 |
Fair value measurements on recurring basis | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 10,655 | 11,247 |
Fair value measurements on recurring basis | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 12,406 | 13,202 |
Fair value measurements on recurring basis | Level I | ||
Assets and liabilities measured at fair value | ||
Total Assets | 10,655 | 11,247 |
Fair value measurements on recurring basis | Level I | Equity security | ||
Assets and liabilities measured at fair value | ||
Marketable securities | 10,655 | 11,247 |
Fair value measurements on recurring basis | Level II | ||
Assets and liabilities measured at fair value | ||
Derivative assets | 38,029 | 40,555 |
Total Assets | 38,029 | 40,555 |
Derivative liabilities | 34,805 | 41,324 |
Total Liabilities | 58,704,086 | 60,797,819 |
Fair value measurements on recurring basis | Level III | ||
Assets and liabilities measured at fair value | ||
Total Assets | 63,322,846 | 65,461,315 |
Total Liabilities | 2,227,428 | 2,019,876 |
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 | 763,773 | 1,022,979 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 160,301 | 167,349 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Assets and liabilities measured at fair value | ||
Available-for-sale securities | 19,256 | 19,457 |
Fair value measurements on recurring basis | Level III | Domestic Servicing Rights | ||
Assets and liabilities measured at fair value | ||
Domestic servicing rights | 12,406 | 13,202 |
Primary beneficiary | ||
Assets and liabilities measured at fair value | ||
Total Assets | 62,367,110 | 64,238,328 |
Total Liabilities | 60,896,709 | 62,776,371 |
Primary beneficiary | Fair value measurements on recurring basis | VIE Assets | ||
Assets and liabilities measured at fair value | ||
Total Assets | 62,367,110 | 64,238,328 |
Primary beneficiary | Fair value measurements on recurring basis | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
Total Liabilities | 60,896,709 | 62,776,371 |
Primary beneficiary | Fair value measurements on recurring basis | Level II | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
Total Liabilities | 58,669,281 | 60,756,495 |
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE Assets | ||
Assets and liabilities measured at fair value | ||
Total Assets | 62,367,110 | 64,238,328 |
Primary beneficiary | Fair value measurements on recurring basis | Level III | VIE liabilities | ||
Assets and liabilities measured at fair value | ||
Total Liabilities | $ 2,227,428 | $ 2,019,876 |
Fair Value - Level III (Details
Fair Value - Level III (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Total realized and unrealized gains (losses): | ||
Included in earnings: Net accretion | $ 3,476 | $ 2,783 |
Level III | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 63,441,439 | 61,317,478 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | (2,208,812) | (3,371,299) |
Included in earnings: Net accretion | 2,606 | 2,661 |
Included in OCI | (2,403) | (15,048) |
Purchases / Originations | 375,270 | 746,880 |
Sales | (571,927) | (759,686) |
Issuances | (11,604) | (24,376) |
Cash repayments / receipts | (62,032) | (83,233) |
Transfers into Level III | (409,267) | (101,265) |
Transfers out of Level III | 148,775 | 1,090,325 |
Consolidations of VIEs | 393,373 | 2,406,327 |
Balance at the end of the period | 61,095,418 | 61,208,764 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (2,204,436) | (3,397,959) |
Amount of unrealized gains (losses) included in OCI attributable to assets still held at period end | (2,403) | (15,048) |
Level III | Loans held-for-sale | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 1,022,979 | 1,436,194 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | (9,478) | (16,134) |
Purchases / Originations | 375,270 | 746,880 |
Sales | (571,927) | (751,746) |
Cash repayments / receipts | (53,071) | (67,397) |
Balance at the end of the period | 763,773 | 1,347,797 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (7,708) | (39,070) |
Level III | RMBS | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 167,349 | 189,576 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Net accretion | 2,606 | 2,661 |
Included in OCI | (2,403) | (15,048) |
Cash repayments / receipts | (7,251) | (6,549) |
Balance at the end of the period | 160,301 | 170,640 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | 2,606 | 2,661 |
Amount of unrealized gains (losses) included in OCI attributable to assets still held at period end | (2,403) | (15,048) |
Level III | CMBS | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 19,457 | 25,008 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | 372 | 5,738 |
Sales | (7,940) | |
Cash repayments / receipts | (573) | (371) |
Balance at the end of the period | 19,256 | 22,435 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | 372 | (647) |
Level III | Domestic Servicing Rights | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 13,202 | 16,917 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | (796) | (393) |
Balance at the end of the period | 12,406 | 16,524 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (796) | (393) |
Level III | VIE Assets | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 64,238,328 | 62,187,175 |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | (2,264,591) | (3,506,792) |
Consolidations of VIEs | 393,373 | 2,477,422 |
Balance at the end of the period | 62,367,110 | 61,157,805 |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | (2,264,591) | (3,506,792) |
Level III | VIE liabilities | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | (2,019,876) | (2,537,392) |
Total realized and unrealized gains (losses): | ||
Included in earnings: Change in fair value / gain on sale | 65,681 | 146,282 |
Issuances | (11,604) | (24,376) |
Cash repayments / receipts | (1,137) | (8,916) |
Transfers into Level III | (409,267) | (101,265) |
Transfers out of Level III | 148,775 | 1,090,325 |
Consolidations of VIEs | (71,095) | |
Balance at the end of the period | (2,227,428) | (1,506,437) |
Amount of unrealized gains (losses) included in earnings attributable to assets still held at period end | $ 65,681 | $ 146,282 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets not carried at fair value: | ||
HTM securities | $ 493,462 | $ 544,280 |
Carrying Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 12,402,351 | 11,116,929 |
HTM securities | 488,075 | 538,605 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 11,827,110 | 11,076,744 |
Unsecured senior notes | 1,735,658 | 1,732,520 |
Fair Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment, loans held-for-sale and loans transferred as secured borrowings | 12,460,388 | 11,107,316 |
HTM securities | 466,687 | 515,253 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements and secured borrowings on transferred loans | 11,900,381 | 11,108,364 |
Unsecured senior notes | $ 1,803,224 | $ 1,786,667 |
Fair Value - Significant unobse
Fair Value - Significant unobservable inputs (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 12,406,000 | $ 13,202,000 |
Total Assets | 79,702,323,000 | 80,873,509,000 |
Total Liabilities | 74,847,538,000 | 76,010,933,000 |
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 | 763,773,000 | 1,022,979,000 |
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 | 160,301,000 | 167,349,000 |
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 | 19,256,000 | 19,457,000 |
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 | 12,406,000 | 13,202,000 |
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 | $ 763,773,000 | $ 1,022,979,000 |
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 | 7 years 3 months 18 days |
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 | 519 |
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 | 15 | 5 |
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 | 85.6 | 84.4 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, measurement input | 3.4 | 3.3 |
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 | 39 years 3 months 18 days |
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 | 94 | 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 | 104.8 | 104.8 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, measurement input | 9.5 | 9.7 |
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 | 24 years 8 months 12 days | 26 years 3 months 18 days |
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 | (732) | (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 | 66 | 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 | 101.7 | 99.8 |
Fair value measurements on recurring basis | Level III | Loans held-for-sale | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans held-for-sale, measurement input | 5.5 | 5.9 |
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 | $ 160,301,000 | $ 167,349,000 |
Debt Securities, Available-for-sale, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Loss severity for specified percentage of portfolio (as a percent) | 14.00% | 23.00% |
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 | 3.5 | 3.6 |
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 | 0.7 | 0.7 |
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 | 9 | 10 |
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 | 23 | 23 |
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 | 17.3 | 19.4 |
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 | 5 | 5.4 |
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 | 84 | 85 |
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 | 32 | 32 |
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 | 84 | 82 |
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 | 1.2 | 0.9 |
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 | 17 | 17 |
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 | 7.4 | 7.6 |
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 | 2.2 | 2.4 |
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 | 17 | 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 | 18 | 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 | 53 | 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 | 0.1 | 0.1 |
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 | 0.8 | 0.8 |
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 | $ 19,256,000 | $ 19,457,000 |
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 | 7 years 7 months 6 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 | 298.5 | 536.6 |
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 | 6 years | 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 | 5.9 | 7.1 |
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 | $ 12,406,000 | $ 13,202,000 |
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 | 7.25 | |
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 | 15 | 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 | 7.25 | 7.50 |
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 | 15 | 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) | 20 years 7 months 6 days | 16 years 3 months 18 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 | 752.4 | 312.2 |
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 | 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 | 16.9 | 14.3 |
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) | 11 years | 10 years 9 months 18 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 | 752.4 | 312.2 |
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 | 17.3 | 14.4 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Discounted cash flow | 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 8 months 12 days | |
Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Assets | $ 62,367,110,000 | $ 64,238,328,000 |
Total Liabilities | 60,896,709,000 | 62,776,371,000 |
Primary beneficiary | Fair value measurements on recurring basis | VIE Assets | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Assets | 62,367,110,000 | 64,238,328,000 |
Primary beneficiary | Fair value measurements on recurring basis | VIE liabilities | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Total Liabilities | 60,896,709,000 | 62,776,371,000 |
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 | $ 62,367,110,000 | $ 64,238,328,000 |
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 | $ 2,227,428,000 | $ 2,019,876,000 |
Derivative Liability, Valuation Technique [Extensible List] | us-gaap:ValuationTechniqueDiscountedCashFlowMember | us-gaap:ValuationTechniqueDiscountedCashFlowMember |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Income Taxes | ||
Assets | $ 79,702,323 | $ 80,873,509 |
Investing and Servicing Segment | TRS entities | ||
Income Taxes | ||
Assets | $ 959,600,000 | $ 1,400,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2017 | |
Reconciliation of statutory tax to effective tax | |||
Federal statutory tax rate | $ 26,199 | $ (15,329) | |
REIT and other non-taxable income | (24,501) | 9,914 | |
State income taxes | 558 | (1,779) | |
Federal benefit of state tax deduction | (117) | 374 | |
Other | 91 | 91 | |
Total income tax provision | $ 2,230 | $ (6,729) | |
Reconciliation of statutory tax rate to effective tax rate | |||
Federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
REIT and other non-taxable income (as a percent) | (19.60%) | (13.60%) | |
State income taxes (as a percent) | 0.40% | 2.40% | |
Federal benefit of state tax deduction (as a percent) | (0.10%) | (0.50%) | |
Other (as a percent) | 0.10% | (0.10%) | |
Effective tax rate (as a percent) | 1.80% | 9.20% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2021USD ($)item |
Infrastructure Lending Segment | Interest rate swaps | Derivatives designated as hedging instruments | |
Commitments and Contingencies | |
Number of guarantees | item | 6 |
Commitments | Commercial and Residential Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | $ 1,500 |
Value of loans with future funding commitments expected to fund | 1,300 |
Outstanding | 82.7 |
Commitments | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | 192.5 |
Revolvers and letters of credit | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | 126.7 |
Outstanding | 15.6 |
Delayed draw term loans | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | $ 65.8 |
Segment and Geographic Data - R
Segment and Geographic Data - Results of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Interest income from loans | $ 190,575 | $ 217,427 |
Interest income from investment securities | 11,610 | 15,240 |
Servicing fees | 8,402 | 4,793 |
Rental income | 76,338 | 74,146 |
Other revenues | 305 | 954 |
Total revenues | 287,230 | 312,560 |
Costs and expenses: | ||
Management fees | 38,736 | 40,728 |
Interest expense | 103,374 | 120,025 |
General and administrative | 38,636 | 38,702 |
Acquisition and investment pursuit costs | 185 | 909 |
Costs of rental operations | 28,745 | 28,214 |
Depreciation and amortization | 22,474 | 23,980 |
Credit loss provision (reversal), net | 44 | 48,669 |
Other expense | 685 | 388 |
Total costs and expenses | 232,879 | 301,615 |
Other income (loss): | ||
Change in net assets related to consolidated VIEs | 39,745 | (45,493) |
Change in fair value of servicing rights | (796) | (393) |
Change in fair value of investment securities, net | (306) | 2,504 |
Change in fair value of mortgage loans, net | (9,478) | (16,134) |
Earnings from unconsolidated entities | 1,734 | 97 |
(Loss) gain on sale of investments and other assets, net | 17,693 | 296 |
(Loss) gain on derivative financial instruments, net | 33,989 | 9,710 |
Foreign currency (loss) gain, net | (11,681) | (34,486) |
Add: Loss on extinguishment of Convertible Notes | (516) | (170) |
Other income, net | 21 | 126 |
Total other income (loss) | 70,405 | (83,943) |
Income (loss) before income taxes | 124,756 | (72,998) |
Income tax (provision) benefit | (2,230) | 6,729 |
Net income (loss) | 122,526 | (66,269) |
Net income attributable to non-controlling interests | (11,148) | (500) |
Net income (loss) attributable to Starwood Property Trust, Inc. | 111,378 | (66,769) |
Operating Segments and Corporate | ||
Revenues: | ||
Interest income from loans | 190,575 | 217,427 |
Interest income from investment securities | 39,889 | 44,129 |
Servicing fees | 12,580 | 6,614 |
Rental income | 76,338 | 74,146 |
Other revenues | 305 | 956 |
Total revenues | 319,687 | 343,272 |
Costs and expenses: | ||
Management fees | 38,725 | 40,697 |
Interest expense | 103,565 | 120,187 |
General and administrative | 38,549 | 38,618 |
Acquisition and investment pursuit costs | 185 | 909 |
Costs of rental operations | 28,745 | 28,214 |
Depreciation and amortization | 22,474 | 23,980 |
Credit loss provision (reversal), net | 44 | 48,669 |
Other expense | 685 | 388 |
Total costs and expenses | 232,972 | 301,662 |
Other income (loss): | ||
Change in fair value of servicing rights | 745 | 318 |
Change in fair value of investment securities, net | 5,120 | (75,095) |
Change in fair value of mortgage loans, net | (9,478) | (16,134) |
Earnings from unconsolidated entities | 2,088 | 671 |
(Loss) gain on sale of investments and other assets, net | 17,693 | 296 |
(Loss) gain on derivative financial instruments, net | 33,989 | 9,710 |
Foreign currency (loss) gain, net | (11,681) | (34,486) |
Add: Loss on extinguishment of Convertible Notes | (516) | (170) |
Other income, net | 21 | 126 |
Total other income (loss) | 37,981 | (114,764) |
Income (loss) before income taxes | 124,696 | (73,154) |
Income tax (provision) benefit | (2,230) | 6,729 |
Net income (loss) | 122,466 | (66,425) |
Net income attributable to non-controlling interests | (11,088) | (344) |
Net income (loss) attributable to Starwood Property Trust, Inc. | 111,378 | (66,769) |
Operating segment | Commercial and Residential Lending Segment | ||
Revenues: | ||
Interest income from loans | 170,593 | 192,381 |
Interest income from investment securities | 18,385 | 18,628 |
Servicing fees | 124 | 172 |
Rental income | 1,339 | 78 |
Other revenues | 90 | 178 |
Total revenues | 190,531 | 211,437 |
Costs and expenses: | ||
Management fees | 315 | 351 |
Interest expense | 44,295 | 53,950 |
General and administrative | 11,333 | 8,132 |
Acquisition and investment pursuit costs | 185 | 860 |
Costs of rental operations | 477 | 778 |
Depreciation and amortization | 307 | 415 |
Credit loss provision (reversal), net | (529) | 40,217 |
Other expense | 31 | 77 |
Total costs and expenses | 56,414 | 104,780 |
Other income (loss): | ||
Change in fair value of investment securities, net | (2,050) | (27,879) |
Change in fair value of mortgage loans, net | (10,714) | (35,517) |
Earnings from unconsolidated entities | 1,753 | 51 |
(Loss) gain on sale of investments and other assets, net | 17,693 | |
(Loss) gain on derivative financial instruments, net | 26,141 | 30,805 |
Foreign currency (loss) gain, net | (11,594) | (34,001) |
Add: Loss on extinguishment of Convertible Notes | (68) | |
Total other income (loss) | 21,161 | (66,541) |
Income (loss) before income taxes | 155,278 | 40,116 |
Income tax (provision) benefit | (1,505) | 4,422 |
Net income (loss) | 153,773 | 44,538 |
Net income attributable to non-controlling interests | (3) | (3) |
Net income (loss) attributable to Starwood Property Trust, Inc. | 153,770 | 44,535 |
Operating segment | Infrastructure Lending Segment | ||
Revenues: | ||
Interest income from loans | 18,808 | 22,413 |
Interest income from investment securities | 564 | 701 |
Other revenues | 93 | 143 |
Total revenues | 19,465 | 23,257 |
Costs and expenses: | ||
Interest expense | 8,841 | 13,117 |
General and administrative | 3,442 | 4,423 |
Acquisition and investment pursuit costs | 17 | |
Depreciation and amortization | 100 | 70 |
Credit loss provision (reversal), net | 573 | 8,452 |
Total costs and expenses | 12,956 | 26,079 |
Other income (loss): | ||
Earnings from unconsolidated entities | (254) | |
(Loss) gain on sale of investments and other assets, net | 296 | |
(Loss) gain on derivative financial instruments, net | 684 | (1,001) |
Foreign currency (loss) gain, net | (49) | (473) |
Add: Loss on extinguishment of Convertible Notes | (307) | (170) |
Other income, net | 21 | |
Total other income (loss) | 95 | (1,348) |
Income (loss) before income taxes | 6,604 | (4,170) |
Income tax (provision) benefit | (92) | 145 |
Net income (loss) | 6,512 | (4,025) |
Net income (loss) attributable to Starwood Property Trust, Inc. | 6,512 | (4,025) |
Operating segment | Investing and Servicing Segment | ||
Revenues: | ||
Interest income from loans | 1,174 | 2,633 |
Interest income from investment securities | 20,940 | 24,800 |
Servicing fees | 12,456 | 6,442 |
Rental income | 9,895 | 10,107 |
Other revenues | 82 | 513 |
Total revenues | 44,547 | 44,495 |
Costs and expenses: | ||
Management fees | 222 | 239 |
Interest expense | 5,449 | 7,194 |
General and administrative | 18,440 | 20,684 |
Acquisition and investment pursuit costs | 20 | |
Costs of rental operations | 4,308 | 4,584 |
Depreciation and amortization | 3,967 | 4,207 |
Other expense | 71 | |
Total costs and expenses | 32,457 | 36,928 |
Other income (loss): | ||
Change in fair value of servicing rights | 745 | 318 |
Change in fair value of investment securities, net | 7,170 | (47,216) |
Change in fair value of mortgage loans, net | 1,236 | 19,383 |
Earnings from unconsolidated entities | 589 | 620 |
(Loss) gain on derivative financial instruments, net | 9,283 | (19,106) |
Foreign currency (loss) gain, net | (63) | 7 |
Other income, net | 76 | |
Total other income (loss) | 18,960 | (45,918) |
Income (loss) before income taxes | 31,050 | (38,351) |
Income tax (provision) benefit | (633) | 2,162 |
Net income (loss) | 30,417 | (36,189) |
Net income attributable to non-controlling interests | (6,008) | 4,770 |
Net income (loss) attributable to Starwood Property Trust, Inc. | 24,409 | (31,419) |
Operating segment | Property Segment | ||
Revenues: | ||
Rental income | 65,104 | 63,961 |
Other revenues | 40 | 122 |
Total revenues | 65,144 | 64,083 |
Costs and expenses: | ||
Interest expense | 15,832 | 17,121 |
General and administrative | 1,023 | 1,078 |
Acquisition and investment pursuit costs | 12 | |
Costs of rental operations | 23,960 | 22,852 |
Depreciation and amortization | 18,100 | 19,288 |
Other expense | 583 | 311 |
Total costs and expenses | 59,498 | 60,662 |
Other income (loss): | ||
(Loss) gain on derivative financial instruments, net | 4,724 | (30,223) |
Foreign currency (loss) gain, net | 25 | (19) |
Add: Loss on extinguishment of Convertible Notes | (141) | |
Other income, net | 50 | |
Total other income (loss) | 4,608 | (30,192) |
Income (loss) before income taxes | 10,254 | (26,771) |
Net income (loss) | 10,254 | (26,771) |
Net income attributable to non-controlling interests | (5,077) | (5,111) |
Net income (loss) attributable to Starwood Property Trust, Inc. | 5,177 | (31,882) |
Corporate | ||
Costs and expenses: | ||
Management fees | 38,188 | 40,107 |
Interest expense | 29,148 | 28,805 |
General and administrative | 4,311 | 4,301 |
Total costs and expenses | 71,647 | 73,213 |
Other income (loss): | ||
(Loss) gain on derivative financial instruments, net | (6,843) | 29,235 |
Total other income (loss) | (6,843) | 29,235 |
Income (loss) before income taxes | (78,490) | (43,978) |
Net income (loss) | (78,490) | (43,978) |
Net income (loss) attributable to Starwood Property Trust, Inc. | (78,490) | (43,978) |
LNR VIEs | ||
Revenues: | ||
Interest income from investment securities | (28,279) | (28,889) |
Servicing fees | (4,178) | (1,821) |
Other revenues | (2) | |
Total revenues | (32,457) | (30,712) |
Costs and expenses: | ||
Management fees | 11 | 31 |
Interest expense | (191) | (162) |
General and administrative | 87 | 84 |
Total costs and expenses | (93) | (47) |
Other income (loss): | ||
Change in net assets related to consolidated VIEs | 39,745 | (45,493) |
Change in fair value of servicing rights | (1,541) | (711) |
Change in fair value of investment securities, net | (5,426) | 77,599 |
Earnings from unconsolidated entities | (354) | (574) |
Total other income (loss) | 32,424 | 30,821 |
Income (loss) before income taxes | 60 | 156 |
Net income (loss) | 60 | 156 |
Net income attributable to non-controlling interests | $ (60) | $ (156) |
Segment and Geographic Data - B
Segment and Geographic Data - Balance sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||||
Cash and cash equivalents | $ 351,190 | $ 563,217 | ||
Restricted cash | 118,724 | 158,945 | ||
Loans held-for-investment, net | 12,321,493 | 11,087,073 | ||
Loans held-for-sale | 844,631 | 1,052,835 | ||
Investment securities | 678,287 | 736,658 | ||
Properties, net | 2,244,748 | 2,271,153 | ||
Intangible assets | 66,772 | 70,117 | ||
Investment in unconsolidated entities | 100,907 | 108,054 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 38,029 | 40,555 | ||
Accrued interest receivable | 101,713 | 95,980 | ||
Other assets | 208,873 | 190,748 | ||
Total Assets | 79,702,323 | 80,873,509 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 178,215 | 206,845 | ||
Related-party payable | 36,135 | 39,170 | ||
Dividends payable | 138,906 | 137,959 | ||
Derivative liabilities | 34,805 | 41,324 | ||
Secured financing agreements, net | 10,895,932 | 10,146,190 | ||
Collateralized loan obligations, net | 931,178 | 930,554 | ||
Unsecured senior notes, net | 1,735,658 | 1,732,520 | ||
Total Liabilities | 74,847,538 | 76,010,933 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,943 | 2,921 | ||
Additional paid-in capital | 5,225,037 | 5,209,739 | ||
Treasury stock | (138,022) | (138,022) | ||
Accumulated other comprehensive income (loss) | 41,654 | 43,993 | $ 35,884 | $ 50,932 |
Retained earnings (accumulated deficit) | (654,750) | (629,733) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,476,862 | 4,488,898 | ||
Non-controlling interests in consolidated subsidiaries | 377,923 | 373,678 | ||
Total Equity | 4,854,785 | 4,862,576 | $ 4,817,351 | $ 5,137,014 |
Total Liabilities and Equity | 79,702,323 | 80,873,509 | ||
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 | 350,406 | 562,445 | ||
Restricted cash | 118,724 | 158,945 | ||
Loans held-for-investment, net | 12,321,493 | 11,087,073 | ||
Loans held-for-sale | 844,631 | 1,052,835 | ||
Investment securities | 2,110,919 | 2,162,228 | ||
Properties, net | 2,244,748 | 2,271,153 | ||
Intangible assets | 109,690 | 111,493 | ||
Investment in unconsolidated entities | 116,789 | 124,166 | ||
Goodwill | 259,846 | 259,846 | ||
Derivative assets | 38,029 | 40,555 | ||
Accrued interest receivable | 101,845 | 96,114 | ||
Other assets | 208,889 | 190,755 | ||
Total Assets | 18,826,009 | 18,117,608 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 178,124 | 206,770 | ||
Related-party payable | 36,135 | 39,170 | ||
Dividends payable | 138,906 | 137,959 | ||
Derivative liabilities | 34,805 | 41,324 | ||
Secured financing agreements, net | 10,917,775 | 10,168,190 | ||
Collateralized loan obligations, net | 931,178 | 930,554 | ||
Unsecured senior notes, net | 1,735,658 | 1,732,520 | ||
Total Liabilities | 13,972,581 | 13,256,487 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,943 | 2,921 | ||
Additional paid-in capital | 5,225,037 | 5,209,739 | ||
Treasury stock | (138,022) | (138,022) | ||
Accumulated other comprehensive income (loss) | 41,654 | 43,993 | ||
Retained earnings (accumulated deficit) | (654,750) | (629,733) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 4,476,862 | 4,488,898 | ||
Non-controlling interests in consolidated subsidiaries | 376,566 | 372,223 | ||
Total Equity | 4,853,428 | 4,861,121 | ||
Total Liabilities and Equity | 18,826,009 | 18,117,608 | ||
Operating segment | Commercial and Residential Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 56,629 | 160,007 | ||
Restricted cash | 69,882 | 93,445 | ||
Loans held-for-investment, net | 10,733,752 | 9,673,625 | ||
Loans held-for-sale | 587,037 | 841,963 | ||
Investment securities | 969,968 | 1,014,402 | ||
Properties, net | 93,718 | 103,896 | ||
Investment in unconsolidated entities | 47,514 | 54,407 | ||
Derivative assets | 13,088 | 6,595 | ||
Accrued interest receivable | 97,853 | 87,922 | ||
Other assets | 61,677 | 61,638 | ||
Total Assets | 12,731,118 | 12,097,900 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 37,206 | 41,104 | ||
Derivative liabilities | 33,190 | 39,082 | ||
Secured financing agreements, net | 6,502,059 | 5,893,999 | ||
Collateralized loan obligations, net | 931,178 | 930,554 | ||
Total Liabilities | 7,503,633 | 6,904,739 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 1,074,553 | 1,192,584 | ||
Accumulated other comprehensive income (loss) | 41,654 | 44,057 | ||
Retained earnings (accumulated deficit) | 4,111,160 | 3,956,405 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 5,227,367 | 5,193,046 | ||
Non-controlling interests in consolidated subsidiaries | 118 | 115 | ||
Total Equity | 5,227,485 | 5,193,161 | ||
Total Liabilities and Equity | 12,731,118 | 12,097,900 | ||
Operating segment | Infrastructure Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 7,873 | 4,440 | ||
Restricted cash | 27,973 | 45,113 | ||
Loans held-for-investment, net | 1,586,808 | 1,412,440 | ||
Loans held-for-sale | 89,368 | 120,540 | ||
Investment securities | 34,951 | 35,681 | ||
Investment in unconsolidated entities | 24,840 | 25,095 | ||
Goodwill | 119,409 | 119,409 | ||
Accrued interest receivable | 3,310 | 2,091 | ||
Other assets | 7,107 | 4,531 | ||
Total Assets | 1,901,639 | 1,769,340 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 16,010 | 12,144 | ||
Derivative liabilities | 1,310 | 1,718 | ||
Secured financing agreements, net | 1,259,813 | 1,240,763 | ||
Total Liabilities | 1,277,133 | 1,254,625 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 599,666 | 496,387 | ||
Retained earnings (accumulated deficit) | 24,840 | 18,328 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 624,506 | 514,715 | ||
Total Equity | 624,506 | 514,715 | ||
Total Liabilities and Equity | 1,901,639 | 1,769,340 | ||
Operating segment | Property Segment | ||||
Assets: | ||||
Cash and cash equivalents | 39,791 | 32,080 | ||
Restricted cash | 6,672 | 7,192 | ||
Properties, net | 1,954,880 | 1,969,414 | ||
Intangible assets | 38,833 | 40,370 | ||
Derivative assets | 162 | 41 | ||
Other assets | 85,740 | 69,859 | ||
Total Assets | 2,126,078 | 2,118,956 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 44,184 | 43,630 | ||
Secured financing agreements, net | 1,871,026 | 1,794,609 | ||
Total Liabilities | 1,915,210 | 1,838,239 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | 25,905 | 98,882 | ||
Retained earnings (accumulated deficit) | (40,641) | (44,832) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | (14,736) | 54,050 | ||
Non-controlling interests in consolidated subsidiaries | 225,604 | 226,667 | ||
Total Equity | 210,868 | 280,717 | ||
Total Liabilities and Equity | 2,126,078 | 2,118,956 | ||
Operating segment | Investing and Servicing Segment | ||||
Assets: | ||||
Cash and cash equivalents | 29,064 | 19,546 | ||
Restricted cash | 14,197 | 13,195 | ||
Loans held-for-investment, net | 933 | 1,008 | ||
Loans held-for-sale | 168,226 | 90,332 | ||
Investment securities | 1,106,000 | 1,112,145 | ||
Properties, net | 196,150 | 197,843 | ||
Intangible assets | 70,857 | 71,123 | ||
Investment in unconsolidated entities | 44,435 | 44,664 | ||
Goodwill | 140,437 | 140,437 | ||
Derivative assets | 320 | 147 | ||
Accrued interest receivable | 274 | 123 | ||
Other assets | 44,719 | 44,579 | ||
Total Assets | 1,815,612 | 1,735,142 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 24,110 | 45,309 | ||
Related-party payable | 5 | |||
Derivative liabilities | 305 | 524 | ||
Secured financing agreements, net | 653,222 | 606,100 | ||
Total Liabilities | 677,637 | 651,938 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Additional paid-in capital | (298,098) | (322,992) | ||
Accumulated other comprehensive income (loss) | (64) | |||
Retained earnings (accumulated deficit) | 1,285,229 | 1,260,819 | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | 987,131 | 937,763 | ||
Non-controlling interests in consolidated subsidiaries | 150,844 | 145,441 | ||
Total Equity | 1,137,975 | 1,083,204 | ||
Total Liabilities and Equity | 1,815,612 | 1,735,142 | ||
Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 217,049 | 346,372 | ||
Derivative assets | 24,459 | 33,772 | ||
Accrued interest receivable | 408 | 5,978 | ||
Other assets | 9,646 | 10,148 | ||
Total Assets | 251,562 | 396,270 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 56,614 | 64,583 | ||
Related-party payable | 36,135 | 39,165 | ||
Dividends payable | 138,906 | 137,959 | ||
Secured financing agreements, net | 631,655 | 632,719 | ||
Unsecured senior notes, net | 1,735,658 | 1,732,520 | ||
Total Liabilities | 2,598,968 | 2,606,946 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Common stock | 2,943 | 2,921 | ||
Additional paid-in capital | 3,823,011 | 3,744,878 | ||
Treasury stock | (138,022) | (138,022) | ||
Retained earnings (accumulated deficit) | (6,035,338) | (5,820,453) | ||
Total Starwood Property Trust, Inc. Stockholders' Equity | (2,347,406) | (2,210,676) | ||
Total Equity | (2,347,406) | (2,210,676) | ||
Total Liabilities and Equity | 251,562 | 396,270 | ||
LNR VIEs | ||||
Assets: | ||||
Cash and cash equivalents | 784 | 772 | ||
Investment securities | (1,432,632) | (1,425,570) | ||
Intangible assets | (42,918) | (41,376) | ||
Investment in unconsolidated entities | (15,882) | (16,112) | ||
Accrued interest receivable | (132) | (134) | ||
Other assets | (16) | (7) | ||
Total Assets | 60,876,314 | 62,755,901 | ||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 91 | 75 | ||
Secured financing agreements, net | (21,843) | (22,000) | ||
Total Liabilities | 60,874,957 | 62,754,446 | ||
Starwood Property Trust, Inc. Stockholders' Equity: | ||||
Non-controlling interests in consolidated subsidiaries | 1,357 | 1,455 | ||
Total Equity | 1,357 | 1,455 | ||
Total Liabilities and Equity | 60,876,314 | 62,755,901 | ||
Primary beneficiary | ||||
Assets: | ||||
Total Assets | 62,367,110 | 64,238,328 | ||
Liabilities: | ||||
Total Liabilities | 60,896,709 | 62,776,371 | ||
Primary beneficiary | LNR VIEs | ||||
Assets: | ||||
Total Assets | 62,367,110 | 64,238,328 | ||
Liabilities: | ||||
Total Liabilities | $ 60,896,709 | $ 62,776,371 |
Subsequent Events (Details)
Subsequent Events (Details) - Collateralized Loan Obligation - USD ($) $ in Millions | 1 Months Ended | ||
May 31, 2021 | Apr. 30, 2021 | Aug. 31, 2019 | |
Subsequent Events | |||
Amount issued | $ 1,100 | ||
Principal amount of rated bonds | $ 936.4 | ||
Total loans held-for-investment | Commercial Portfolio Segment | Subsequent event | |||
Subsequent Events | |||
Amount issued | $ 1,300 | ||
Principal amount of rated bonds | $ 1,100 | ||
Period for which allows us to contribute new loans or participation interests in loans | 2 years | ||
Total loans held-for-investment | Commercial Portfolio Segment | Subsequent event | LIBOR | |||
Subsequent Events | |||
Pricing margin (as a percent) | 150.00% | ||
Total loans held-for-investment | Infrastructure Portfolio Segment | Subsequent event | |||
Subsequent Events | |||
Amount issued | $ 500 | ||
Principal amount of rated bonds | $ 410 | ||
Period for which allows us to contribute new loans or participation interests in loans | 3 years | ||
Total loans held-for-investment | Infrastructure Portfolio Segment | Subsequent event | LIBOR | |||
Subsequent Events | |||
Pricing margin (as a percent) | 181.00% |