Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 12, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document type | 10-K | ||
Amendment flag | false | ||
Document period end date | Dec. 31, 2018 | ||
Document fiscal year focus | 2,018 | ||
Document fiscal period focus | FY | ||
Trading symbol | ARI | ||
Entity registrant name | Apollo Commercial Real Estate Finance, Inc. | ||
Entity central index key | 1,467,760 | ||
Current fiscal year end date | --12-31 | ||
Entity well-known seasoned issuer | Yes | ||
Entity current reporting status | Yes | ||
Entity voluntary filers | No | ||
Shell company | false | ||
Entity filer category | Large Accelerated Filer | ||
Emerging growth company | false | ||
Small business entity | false | ||
Entity common stock, shares outstanding | 134,287,398 | ||
Entity public float | $ 2,193,170,128 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and cash equivalents | $ 109,806 | $ 77,671 |
Commercial mortgage loans and subordinate loans, net | 4,927,593 | 3,679,758 |
Loan proceeds held by servicer | 1,000 | 302,756 |
Other assets | 33,720 | 28,420 |
Derivative assets, net | 23,700 | 0 |
Total Assets | 5,095,819 | 4,088,605 |
Liabilities: | ||
Secured debt arrangements, net (net of deferred financing costs of $17,555 and $14,348 in 2018 and 2017, respectively) | 1,879,522 | 1,330,847 |
Convertible senior notes, net | 592,000 | 584,897 |
Derivative liabilities, net | 0 | 5,644 |
Accounts payable, accrued expenses and other liabilities | 104,746 | 70,906 |
Payable to related party | 9,804 | 8,168 |
Total Liabilities | 2,586,072 | 2,000,462 |
Commitments and Contingencies (see Note 16) | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value, 450,000,000 shares authorized, 133,853,565 and 107,121,235 shares issued and outstanding in 2018 and 2017, respectively | 1,339 | 1,071 |
Additional paid-in-capital | 2,638,441 | 2,170,078 |
Accumulated deficit | (130,170) | (83,143) |
Total Stockholders’ Equity | 2,509,747 | 2,088,143 |
Total Liabilities and Stockholders’ Equity | 5,095,819 | 4,088,605 |
Commercial Mortgage Portfolio Segment [Member] | ||
Assets: | ||
Commercial mortgage loans and subordinate loans, net | 3,878,981 | 2,653,826 |
Subordinate Mortgage Portfolio Segment [Member] | ||
Assets: | ||
Commercial mortgage loans and subordinate loans, net | 1,048,612 | 1,025,932 |
Series B Preferred Stock [Member] | ||
Stockholders’ Equity: | ||
Preferred stock | 68 | 68 |
Series C Preferred Stock [Member] | ||
Stockholders’ Equity: | ||
Preferred stock | $ 69 | $ 69 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred financing costs | $ 17,555 | $ 14,348 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 133,853,565 | 107,121,235 |
Common stock, shares outstanding (in shares) | 133,853,565 | 107,121,235 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 6,770,393 | 6,770,393 |
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 |
Preferred stock, aggregate liquidation preference | $ 169,260 | $ 169,260 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 6,900,000 | 6,900,000 |
Preferred stock, shares outstanding (in shares) | 6,900,000 | 6,900,000 |
Preferred stock, aggregate liquidation preference | $ 172,500 | $ 172,500 |
Commercial Mortgage Portfolio Segment [Member] | ||
Loans pledged as collateral | $ 3,197,900 | $ 2,148,368 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net interest income: | |||||||||||
Interest income from commercial mortgage loans | $ 75,275 | $ 71,179 | $ 65,141 | $ 52,114 | $ 45,942 | $ 41,203 | $ 37,089 | $ 34,398 | $ 263,709 | $ 158,632 | $ 102,927 |
Interest income from subordinate loans | 34,944 | 37,308 | 34,075 | 33,853 | 43,993 | 47,268 | 39,640 | 34,390 | 140,180 | 165,291 | 122,394 |
Interest income from securities | 0 | 0 | 0 | 0 | 1,219 | 2,625 | 4,700 | 6,054 | 0 | 14,598 | 39,055 |
Interest expense | (32,413) | (31,007) | (28,437) | (22,740) | (21,967) | (19,855) | (19,205) | (17,030) | (114,597) | (78,057) | (63,759) |
Net interest income | 77,806 | 77,480 | 70,779 | 63,227 | 69,187 | 71,241 | 62,224 | 57,812 | 289,292 | 260,464 | 200,617 |
Operating expenses: | |||||||||||
General and administrative expenses (includes equity-based compensation of $13,588 in 2018, $13,314 in 2017, and $7,090 in 2016) | (3,977) | (5,843) | (5,652) | (4,998) | (5,138) | (4,629) | (5,200) | (5,758) | (20,470) | (20,725) | (24,983) |
Management fees to related party | (9,804) | (9,515) | (9,013) | (8,092) | (8,169) | (8,309) | (7,742) | (7,432) | (36,424) | (31,652) | (23,388) |
Total operating expenses | (13,781) | (15,358) | (14,665) | (13,090) | (13,307) | (12,938) | (12,942) | (13,190) | (56,894) | (52,377) | (48,371) |
Loss from unconsolidated joint venture | 0 | 0 | 0 | 0 | 0 | 0 | (3,305) | 458 | 0 | (2,847) | (96) |
Other income | 465 | 427 | 343 | 203 | 229 | 359 | 244 | 108 | 1,438 | 940 | 1,094 |
Provision for loan losses and impairments | (15,000) | 0 | (5,000) | 0 | 0 | 0 | (5,000) | 0 | (20,000) | (5,000) | (15,000) |
Realized gain (loss) on sale of assets | 0 | 0 | 0 | 0 | (37,575) | (4,076) | 0 | (1,042) | 0 | (42,693) | 3,834 |
Unrealized gain (loss) on securities | 0 | 0 | 0 | 0 | 25,335 | 13,488 | (4,510) | 2,852 | 0 | 37,165 | (26,099) |
Foreign currency gain (loss) | (6,761) | (4,050) | (29,649) | 10,125 | 658 | 7,763 | 6,913 | 3,172 | (30,335) | 18,506 | (29,284) |
Bargain purchase gain | 0 | 0 | 40,021 | ||||||||
Loss on early extinguishment of debt | 0 | (2,573) | 0 | 0 | (1,947) | 0 | 0 | 0 | (2,573) | (1,947) | 0 |
Gain (loss) on derivative instruments (includes unrealized gains (losses) of $29,345 in 2018, $(11,523) in 2017, and $2,608 in 2016) | 10,261 | 6,291 | 33,538 | (11,032) | (1,265) | (7,481) | (7,389) | (3,045) | 39,058 | (19,180) | 31,160 |
Net income | 52,990 | 62,217 | 55,346 | 49,433 | 41,315 | 68,356 | 36,235 | 47,125 | 219,986 | 193,031 | 157,876 |
Preferred dividends | (6,835) | (6,836) | (6,834) | (6,835) | (6,993) | (11,148) | (9,310) | (9,310) | (27,340) | (36,761) | (30,295) |
Net income available to common stockholders | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | $ 34,322 | $ 57,208 | $ 26,925 | $ 37,815 | $ 192,646 | $ 156,270 | $ 127,581 |
Net income per share of common stock: | |||||||||||
Basic (in dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.52 | $ 1.54 | $ 1.74 |
Diluted (in dollars per share) | $ 0.34 | $ 0.40 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.48 | $ 1.54 | $ 1.74 |
Basic weighted average shares of common stock outstanding (in shares) | 133,852,915 | 129,188,343 | 123,019,993 | 110,211,853 | 106,721,887 | 105,446,704 | 95,428,134 | 91,612,447 | 124,147,073 | 99,859,153 | 72,371,374 |
Diluted weighted average shares of common stock outstanding (in shares) | 163,900,633 | 153,918,435 | 124,629,317 | 111,871,429 | 108,095,950 | 106,812,721 | 96,796,289 | 92,998,250 | 153,821,515 | 101,232,610 | 73,305,101 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
General and administrative expenses, equity-based compensation | $ 13,588 | $ 13,314 | $ 7,090 |
Unrealized gain (loss) on derivatives | $ 29,345 | $ (11,523) | $ 2,608 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income available to common stockholders | $ 192,646 | $ 156,270 | $ 127,581 |
Foreign currency translation adjustment | 0 | 3,811 | (638) |
Comprehensive income | $ 192,646 | $ 160,081 | $ 126,943 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | AOCI Attributable to Parent [Member] |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2015 | 11,450,000 | 67,195,252 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2015 | $ 1,375,424 | $ 115 | $ 672 | $ 1,410,138 | $ (32,328) | $ (3,173) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Capital increase related to Equity Incentive Plan (in shares) | 236,782 | |||||
Capital increase related to Equity Incentive Plan | 4,461 | $ 2 | 4,459 | |||
Issuance of common stock (in shares) | 10,500,000 | |||||
Issuance of common stock | 178,185 | $ 105 | 178,080 | |||
Issuance of common stock - AMTG Merger (in shares) | 13,398,586 | |||||
Issuance of common stock - AMTG Merger | 218,397 | $ 134 | 218,263 | |||
Issuance of restricted common stock (in shares) | 92,056 | |||||
Issuance of restricted common stock | 1 | $ 1 | ||||
Issuance of preferred stock - AMTG Merger (in shares) | 6,900,000 | |||||
Issuance of preferred stock - AMTG Merger | 172,500 | $ 69 | 172,431 | |||
Offering costs | (361) | (361) | ||||
Net income | 157,876 | 157,876 | ||||
Change in other comprehensive loss | (638) | (638) | ||||
Dividends declared on preferred stock | (30,295) | (30,295) | ||||
Dividends declared on common stock - $1.84 per share | (143,323) | (143,323) | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2016 | 18,350,000 | 91,422,676 | ||||
Stockholders' equity, ending balance at Dec. 31, 2016 | 1,932,227 | $ 184 | $ 914 | 1,983,010 | (48,070) | (3,811) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Capital increase related to Equity Incentive Plan (in shares) | 200,859 | |||||
Capital increase related to Equity Incentive Plan | 10,980 | $ 3 | 10,977 | |||
Issuance of common stock (in shares) | 15,470,000 | |||||
Issuance of common stock | 279,827 | $ 154 | 279,673 | |||
Issuance of restricted common stock (in shares) | 27,700 | |||||
Redemption of preferred stock (in shares) | (4,679,607) | |||||
Redemption of preferred stock | (117,002) | $ (47) | (116,955) | |||
Preferred stock redemption charge | 3,016 | 3,016 | ||||
Issuance of Notes | 11,002 | 11,002 | ||||
Offering costs | (645) | (645) | ||||
Net income | 193,031 | 193,031 | ||||
Change in other comprehensive loss | 3,811 | 3,811 | ||||
Dividends declared on preferred stock | (36,761) | (36,761) | ||||
Dividends declared on common stock - $1.84 per share | (191,343) | (191,343) | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2017 | 13,670,393 | 107,121,235 | ||||
Stockholders' equity, ending balance at Dec. 31, 2017 | 2,088,143 | $ 137 | $ 1,071 | 2,170,078 | (83,143) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Capital increase related to Equity Incentive Plan (in shares) | 378,855 | |||||
Capital increase related to Equity Incentive Plan | 8,814 | $ 5 | 8,809 | |||
Issuance of common stock (in shares) | 15,525,000 | |||||
Issuance of common stock | 275,879 | $ 155 | 275,724 | |||
Issuance of Notes | 4,406 | 4,406 | ||||
Exchange of the Notes for common stock (in shares) | 10,828,475 | |||||
Exchange of Notes for common stock | 180,016 | $ 108 | 179,908 | |||
Offering costs | (484) | (484) | ||||
Net income | 219,986 | 219,986 | ||||
Dividends declared on preferred stock | (27,340) | (27,340) | ||||
Dividends declared on common stock - $1.84 per share | (239,673) | (239,673) | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2018 | 13,670,393 | 133,853,565 | ||||
Stockholders' equity, ending balance at Dec. 31, 2018 | $ 2,509,747 | $ 137 | $ 1,339 | $ 2,638,441 | $ (130,170) | $ 0 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared on common stock (in dollars per share) | $ 1.84 | $ 1.84 | $ 1.84 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows (used in) provided by operating activities: | |||
Net income | $ 219,986 | $ 193,031 | $ 157,876 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of discount/premium and PIK | (64,269) | (48,062) | (10,679) |
Amortization of deferred financing costs | 11,186 | 6,669 | 4,607 |
Equity-based compensation | 8,809 | 10,977 | 4,464 |
Unrealized (gain) loss on securities | 0 | (37,165) | 26,099 |
Provision for loan losses and impairment | 20,000 | 5,000 | 15,000 |
Loss from unconsolidated joint venture | 0 | 2,259 | 97 |
Foreign currency (gain) loss | 29,617 | (18,645) | 28,790 |
Unrealized (gain) loss on derivative instruments | (29,345) | 11,523 | (2,608) |
Loss on early extinguishment of debt | 2,573 | 0 | 0 |
Realized (gain) loss on derivative instruments | 0 | 289 | (28,552) |
Realized (gain) loss on sale of assets | 0 | 42,693 | (3,834) |
Bargain purchase gain | 0 | 0 | (40,021) |
Changes in operating assets and liabilities: | |||
Proceeds received from PIK | 75,652 | 0 | 5,004 |
Other assets | (10,198) | (5,192) | (25,579) |
Loan proceeds held by servicer | 0 | (6,306) | 0 |
Accounts payable, accrued expenses and other liabilities | 317 | (3,351) | (8,496) |
Payable to related party | 1,636 | 1,153 | 1,718 |
Net cash (used in) provided by operating activities | 265,964 | 154,873 | 123,886 |
Cash flows used in investing activities: | |||
New funding of commercial mortgage loans | (1,849,100) | (1,136,252) | (625,800) |
Add-on funding of commercial mortgage loans | (131,718) | (82,240) | (224,611) |
New funding of subordinate loans | (220,809) | (497,629) | (209,119) |
Add-on funding of subordinate loans | (149,238) | (112,637) | (76,199) |
Proceeds and payments received on commercial mortgage loans | 675,140 | 218,002 | 205,226 |
Proceeds and payments received on subordinate loans | 610,051 | 376,727 | 117,149 |
Origination and exit fees received on commercial mortgage and subordinate loans | 41,822 | 27,904 | 12,500 |
Funding of unconsolidated joint venture | 0 | (726) | (362) |
Funding of other assets | 0 | (1,379) | (1,640) |
Proceeds (payments) on settlements of derivative instruments | 0 | (201) | 28,552 |
Increase (decrease) in collateral held related to derivative contracts | 24,930 | (4,952) | 2,480 |
Payments and proceeds received on securities | 0 | 468,171 | 140,228 |
Proceeds from sale of investments in unconsolidated joint venture | 0 | 24,498 | 0 |
Payments received on other assets | 0 | 0 | 132 |
Net cash (used in) provided by investing activities | (998,922) | (720,714) | 1,066,529 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 275,879 | 279,816 | 178,185 |
Redemption of preferred stock | 0 | (116,990) | 0 |
Payment of offering costs | (484) | (924) | (406) |
Proceeds from secured debt arrangements | 2,153,846 | 1,239,515 | 721,992 |
Repayments of secured debt arrangements | (1,580,343) | (1,045,614) | (501,200) |
Proceeds from issuance of Notes | 226,550 | 343,275 | 0 |
Exchanges and conversions of Notes | (40,461) | 0 | 0 |
Repayments of participations sold | 0 | (85,081) | (4,372) |
Payment of deferred financing costs | (15,337) | (14,254) | (4,017) |
Dividends on common stock | (227,217) | (183,877) | (132,213) |
Dividends on preferred stock | (27,340) | (35,807) | (27,956) |
Net cash (used in) provided by financing activities | 765,093 | 380,059 | (1,024,504) |
Net increase (decrease) in cash and cash equivalents | 32,135 | (185,782) | 165,911 |
Cash, cash equivalents, and restricted cash, beginning of period | 77,671 | 263,453 | 97,542 |
Cash, cash equivalents, and restricted cash, end of period | 109,806 | 77,671 | 263,453 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 97,880 | 55,835 | 52,708 |
Supplemental disclosure of non-cash financing activities: | |||
Exchange of Notes for common stock | 180,016 | 0 | 0 |
Dividend declared, not yet paid | 69,033 | 56,576 | 51,278 |
Offering costs payable | 0 | 0 | 279 |
Loan proceeds held by servicer | 1,000 | 302,756 | 0 |
AMTG [Member] | |||
Cash flows used in investing activities: | |||
Proceeds from sale of AMTG assets, net | 0 | 0 | 1,508,198 |
ARI Investment in AMTG, net of cash acquired | 0 | 0 | 189,795 |
Cash flows from financing activities: | |||
Repayments of secured debt arrangements | 0 | 0 | (1,254,517) |
Supplemental disclosure of non-cash financing activities: | |||
Fair value of assets acquired from AMTG | 0 | 0 | 1,936,260 |
Fair value of liabilities assumed from AMTG | 0 | 0 | (1,285,183) |
Fair value of common stock issued to AMTG | 0 | 0 | 218,397 |
Fair value of preferred stock issued to AMTG | $ 0 | $ 0 | $ 172,500 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Apollo Commercial Real Estate Finance, Inc. (together with its consolidated subsidiaries, is referred to throughout this report as the "Company," "ARI," "we," "us" and "our") is a corporation that has elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes and primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments. These asset classes are referred to as our target assets. We were formed in Maryland on June 29, 2009 , commenced operations on September 29, 2009 and are externally managed and advised by ACREFI Management, LLC (the "Manager"), an indirect subsidiary of Apollo Global Management, LLC (together with its subsidiaries, "Apollo"). We elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2009. To maintain our tax qualification as a REIT, we are required to distribute at least 90% of our taxable income, excluding net capital gains, to stockholders and meet certain other asset, income, and ownership tests. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("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 and the reported amounts of revenues and expenses during the reporting periods. Our most significant estimates include loan loss reserves and impairment. Actual results could differ from those estimates. On August 31, 2016, we, pursuant to the terms and conditions of the Agreement and Plan of Merger, dated February 26, 2016 (as amended, the "AMTG Merger Agreement"), acquired Apollo Residential Mortgage, Inc. ("AMTG"). AMTG merged with and into ARI (the "AMTG Merger"), with ARI continuing as the surviving entity. As a result, all operations of AMTG and its former subsidiaries are consolidated with our operations. As of December 31, 2016, all assets acquired from AMTG were sold. Under Financial Accounting Standards Board (the "FASB") ASC Topic 805, "Business Combinations" ("ASC 805"), the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. We applied the provisions of ASC 805 in accounting for our acquisition of AMTG. In doing so, we recorded provisional amounts for certain items as of the date of the acquisition, including the fair value of certain assets and liabilities. During the measurement period, a period which shall not exceed one year, we retrospectively adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of such date that, if known, would have affected the measurement of the amounts recognized. See further discussion in "Note 19 - Business Combination." We currently operate in one reporting segment. Classification of Investments and Valuations of Financial Instruments Our investments consist primarily of commercial mortgage loans and subordinate loans that are classified as held-to-maturity. Prior to 2018, we invested in CMBS classified as either available-for-sale or held-to-maturity and we elected the fair value option for certain of those. Classification of Loans Loans held-for-investment are stated at the principal amount outstanding, adjusted for deferred fees and impairment, if any, in accordance with GAAP. To conform to the 2017 and 2018 presentation of the Consolidated Statement of Cash Flows, we reclassified $12.5 million into origination and exit fees received on commercial mortgage loans and subordinate loans for 2016. These amounts were previously recorded in funding of and payments received on commercial mortgage and subordinate loans. Loan Impairment Our loans are typically collateralized by commercial real estate. As a result, we regularly evaluate the extent and impact of any credit migration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations are 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 property’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 properties. In addition, we consider the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel, who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. We evaluate the loans for possible impairment on a quarterly basis. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Impairment, for collateral dependent loans, is then measured as the difference between the carrying value of the loan and the fair value of the collateral. Upon measurement of impairment, we record an allowance to reduce the carrying value of the loan with a corresponding charge to net income. Significant judgments are required in determining impairment, including assumptions regarding the value of the loan, the value of the underlying collateral and other provisions such as guarantees. Fair Value Election Securities at estimated fair value consist of CMBS. In accordance with GAAP, we elected the fair value option for these securities at the date of purchase in order to allow us to measure these securities at fair value with the change in estimated fair value included as a component of earnings in order to reflect the performance of the investments in a timely manner. We have not owned any securities since December 31, 2017. Securities, held-to-maturity GAAP requires that at the time of purchase, we designate investment securities as held-to-maturity or trading, depending on our investment strategy and ability to hold such securities to maturity. Held-to-maturity securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. We have not owned any securities since December 31, 2017. Investments in unconsolidated joint venture Investments are accounted for under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity method investments are initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. Investments in unconsolidated joint ventures are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods and available information at the time the analyses are prepared. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Interest Income Recognition Interest income on commercial mortgage loans, subordinate loans, and CMBS is accrued based on the actual coupon rate adjusted for accretion of any purchase discounts, the amortization of any purchase premiums and the accretion of any deferred fees, in accordance with GAAP. We sold all CMBS prior to 2018. Deferred Financing Costs Costs incurred in connection with financings are capitalized and amortized over the respective financing terms and are reflected on the accompanying consolidated statement of operations as a component of interest expense. At December 31, 2018 and 2017, respectively, we had $17.6 million and $14.3 million of capitalized financing costs, net of amortization included, as a direct deduction from the carrying amount of debt obligations. Earnings per Share GAAP requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock. Prior to the three months ended September 30, 2018, we asserted our intent and ability to settle the principal amount of the Notes in cash and, as a result, the Notes did not have any impact on our diluted earnings per share. As of September 30, 2018, we no longer assert our intent to fully settle the principal amount of the Notes in cash upon conversion. Accordingly, the dilutive effect to earnings per share for the year ended December 31, 2018 is determined using the "if-converted" method whereby interest expense on the outstanding Notes is added back to the diluted earnings numerator and all of the potentially dilutive shares are included in the diluted common shares outstanding denominator for the computation of diluted earnings per share. Foreign Currency We enter into transactions not denominated in U.S. dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statement of operations. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the prevailing exchange rate on the dates that they were recorded. Hedging Instruments and Hedging Activities Consistent with maintaining our qualification as a REIT, in the normal course of business, we use a variety of derivative financial instruments to manage, or hedge, interest rate and foreign currency risk. Derivatives are used for hedging purposes rather than speculation. There is a gain or loss associated with forward points on our foreign currency hedges, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. We determine their fair value using quotations from a third party expert to facilitate the process, which are determined by comparing the contracted forward exchange rate to the current market exchange rate, as well as by using a discounted cash flow analysis on the expected cash flows of each derivative. If our hedging activities do not achieve the desired results, reported earnings may be adversely affected. GAAP requires an entity to recognize all derivatives as either assets or liabilities in the balance sheets and to measure those instruments at fair value. To the extent the instrument qualifies for hedge accounting, the fair value adjustments will be recorded as a component of other comprehensive income in stockholders’ equity until the hedged item is recognized in earnings. Whenever we decide not to pursue hedge accounting, the fair value adjustments will be recorded in earnings immediately based on changes in the fair market value of those instruments. We have not designated any of our derivative instruments as hedges under GAAP and therefore, changes in the fair value of our derivatives are recorded directly in earnings. Secured Debt Arrangements Secured debt arrangements are treated as collateralized financing transactions, unless they meet sales treatment. Securities financed through a secured debt arrangement remain on our balance sheet as an asset and cash received from the purchaser is recorded on our consolidated balance sheet as a liability. Interest paid in accordance with secured debt arrangements is recorded in interest expense. Share-based Payments We account for share-based compensation to our independent directors, Manager and to employees of the Manager and its affiliates using the fair value based methodology prescribed by GAAP. Compensation cost related to restricted common stock issued to our independent directors is measured at its estimated fair value at the grant date, and amortized into expense over the vesting period on a straight-line basis. Compensation cost related to restricted common stock issued to the Manager and to employees of the Manager and its affiliates will initially be measured at estimated fair value at the grant date, and remeasured on subsequent dates to the extent the awards are unvested. To amortize compensation expense for the restricted common stock granted to the Manager and to employees of the Manager and its affiliates, we use the graded vesting attribution method. Income Taxes We have elected to be taxed as a REIT under Sections 856-859 of the Internal Revenue Code of 1986, as amended. Under those sections, a REIT which distributes at least 90% of its REIT taxable income, excluding net capital gains and determined without regard to the dividends paid deduction, as a dividend to its stockholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its stockholders. We have elected to treat certain consolidated subsidiaries, and may in the future elect to treat newly formed subsidiaries, as taxable REIT subsidiaries. Taxable REIT subsidiaries may participate in non-real estate related activities and/or perform non-customary services for tenants and are subject to U.S. federal and state income tax at regular corporate tax rates. Our major tax jurisdictions are U.S. federal, New York State and New York City and the statute of limitations is open for all jurisdictions for the years 2015 through 2018. We do not have any unrecognized tax benefits and do not expect a change in our position for unrecognized tax benefits in the next 12 months. Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. See further discussion in "Note 5 - Commercial Mortgage and Subordinate Loans, Net." Securitization/Sale and Financing Arrangements We periodically sell our financial assets, such as commercial mortgage loans, CMBS and other assets. In connection with these transactions, we may retain or acquire senior or subordinated interests in the related assets. Gains and losses on such transactions are recognized using the guidance in Accounting Standards Codification ("ASC") Topic 860, "Transfers and Servicing", which is based on a financial components approach that focuses on control. Under this approach, after a transfer of financial assets that meets the criteria for treatment as a sale-legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transferred control an entity recognizes the financial assets it retains and any liabilities it has incurred, derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished. We determine the gain or loss on sale of the assets by allocating the carrying value of the sold asset between the sold asset and the interests retained based on their relative fair values, as applicable. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the sold asset. If the sold asset is being accounted for pursuant to the fair value option, there is no gain or loss. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes the fair value measurement disclosure requirements of ASC 820 "Fair Value Measurement" by adding, eliminating, and modifying certain disclosure requirements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and requires application of the prospective method of transition. We are currently assessing the impact the guidance will have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting" ("ASU 2018-07"). The intention of ASU 2018-07 is to expand the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees. These share-based payments will now be measured at grant-date fair value of the equity instrument issued. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be remeasured through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-07 is effective for fiscal years beginning after December 15, 2019 and is applied retrospectively. We are currently assessing the impact the guidance will have on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The intention of ASU 2017-12 is to align an entity’s financial reporting for hedging activities with the economic objectives of those activities. Upon adoption of ASU 2017-12, the cumulative ineffectiveness previously recognized on existing cash flow and net investment hedges will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income (loss). We note that this guidance will not have a material impact on our consolidated financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. We early adopted ASU 2016-18 on June 30, 2017, which changed our consolidated statement of cash flows and related disclosures for all periods presented. The following is a reconciliation of our cash and cash equivalents, and restricted cash to the total presented in our consolidated statement of cash flows for the years ended December 31, 2018 and 2017, respectively ($ in thousands): Balance at December 31, 2018 Balance at December 31, 2017 Cash and cash equivalents $ 109,806 $ 140,229 Restricted cash — 76 Total cash and cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 109,806 $ 140,305 In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements, we expect that the adoption will result in a higher provision for loan losses. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure GAAP establishes a hierarchy of valuation techniques based on the observability of the inputs utilized in measuring financial instruments at fair values. Market based or observable inputs are the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy as noted in ASC 820 " Fair Value Measurements and Disclosures" are described below: Level I — Quoted prices in active markets for identical assets or liabilities. Level II — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level III — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. While we anticipate that our valuation methods will be appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. We will use inputs that are current as of the measurement date, which may include periods of market dislocation, during which price transparency may be reduced. The estimated fair values of our derivative instruments are determined using a discounted cash flow analysis on the expected cash flows of each derivative. The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts (or payments) that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected cash flows are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair values of foreign exchange forwards are determined by comparing the contracted forward exchange rate to the current market exchange rate. The current market exchange rates are determined by using market spot rates, forward rates and interest rate curves for the underlying countries. Our derivative instruments are classified as Level II in the fair value hierarchy. The following table summarizes the levels in the fair value hierarchy into which our financial instruments were categorized as of December 31, 2018 and 2017 ($ in thousands): Fair Value as of December 31, 2018 Fair Value as of December 31, 2017 Level I Level II Level III Total Level I Level II Level III Total Derivative assets (liabilities), net $ — $ 23,700 $ — $ 23,700 $ — $ (5,644 ) $ — $ (5,644 ) |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities We previously held CMBS, which were all sold in 2017 resulting in a net realized loss of $5.5 million. During 2016, we sold securities resulting in a net realized gain of $1.5 million. During 2017 and 2016, we recorded interest income from securities of $14.6 million and $39.1 million , respectively. For the year ended 2017, there was $4.1 million from CMBS (Held-to-Maturity) and $10.5 million from CMBS (Fair Value Option). For the year ended 2016, there was $11.5 million from CMBS (Held-to-Maturity) and $27.6 million from CMBS (Fair Value Option). To conform to the 2018 presentation of the consolidated statement of cash flows, we reclassified (i) $146.5 million of payments received on securities, held-to-maturity, (ii) $295.7 million of proceeds from sale of securities, and (iii) $26.0 million of payments received on securities in 2017, and combined the line items into payments and proceeds received on securities. We reclassified (i) $6.7 million of payments received on securities, held-to-maturity, (ii) $97.9 million of proceeds from sale of securities, and (iii) $35.6 million of payments received on securities in 2016, and combined the line items into payments and proceeds received on securities. |
Commercial Mortgage and Subordi
Commercial Mortgage and Subordinate Loans, Net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Commercial Mortgage and Subordinate Loans, Net | Commercial Mortgage and Subordinate Loans, Net Our loan portfolio was comprised of the following at December 31, 2018 and 2017 ($ in thousands): Loan Type December 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,878,981 $ 2,653,826 Subordinate loans, net 1,048,612 1,025,932 Total loans, net $ 4,927,593 $ 3,679,758 Our loan portfolio consisted of 91% and 88% floating rate loans, based on amortized cost, as of December 31, 2018 and 2017, respectively. Activity relating to our loan investment portfolio, for the year ended December 31, 2018 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 2,069,909 — — 2,069,909 Add-on loan fundings (3) 280,956 — — 280,956 Loan repayments (1,066,843 ) — — (1,066,843 ) Unrealized gain (loss) on foreign currency translation (51,202 ) 189 — (51,013 ) Provision for loan loss (2) — — (20,000 ) (20,000 ) Deferred fees and other items (1) — (34,066 ) — (34,066 ) PIK interest, amortization of fees and other items (1) 43,525 25,367 — 68,892 December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $37.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our consolidated balance sheet. (3) Represents fundings for loans closed prior to 2018. The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Number of loans 69 59 Principal balance $ 4,982,514 $ 3,706,169 Carrying value $ 4,927,593 $ 3,679,758 Unfunded loan commitments (1) $ 1,095,598 $ 435,627 Weighted-average cash coupon (2) 8.4 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Hotel $ 1,286,590 26.1 % $ 645,056 17.6 % Residential-for-sale: inventory (1) 577,053 11.7 % 92,438 2.5 % Residential-for-sale: construction (1) 528,510 10.7 % 349,739 9.5 % Office 832,620 16.9 % 513,830 14.0 % Urban Predevelopment 683,886 13.9 % 654,736 17.8 % Multifamily 448,899 9.1 % 465,057 12.6 % Healthcare 156,814 3.2 % 173,870 4.7 % Retail Center 156,067 3.2 % 198,913 5.4 % Other 151,197 3.1 % 154,141 4.2 % Mixed Use 73,957 1.5 % 354,640 9.6 % Industrial 32,000 0.6 % 77,338 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % (1) To conform to the current period’s presentation, loans with a combined carrying value of $442.2 million classified as residential-for-sale as of December 31, 2017 were broken out into $349.8 million of residential-for-sale: construction and $92.4 million of residential-for-sale: inventory. The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,669,145 33.9 % $ 1,173,833 31.9 % Brooklyn, NY 346,056 7.0 % 357,611 9.7 % Northeast 23,479 0.5 % 100,536 2.7 % Midwest 631,710 12.8 % 683,380 18.6 % West 614,160 12.5 % 227,024 6.2 % Southeast 559,043 11.3 % 531,582 14.4 % Mid Atlantic 211,775 4.3 % 191,976 5.2 % Southwest 96,345 2.0 % 33,615 0.9 % United Kingdom 700,460 14.2 % 303,488 8.3 % Other International 75,420 1.5 % 76,713 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % We assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1. Very low risk 2. Low risk 3. Moderate/average risk 4. High risk/potential for loss: a loan that has a risk of realizing a principal loss 5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or has been impaired The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 3 138,040 3 % 5 399,326 10 % 3 63 4,573,930 93 % 51 3,034,358 83 % 4 — — — % 1 168,208 5 % 5 3 215,623 4 % 2 77,866 2 % 69 $ 4,927,593 100 % 59 $ 3,679,758 100 % We evaluate our loans for possible impairment on a quarterly basis. We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash 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 property’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 properties. In addition, we consider the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. Such loan loss analysis is completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. An allowance for loan loss is established when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. We evaluate modifications to our loan portfolio to determine if the modifications constitute a troubled debt restructuring ("TDR") and/or substantial modification, under ASC Topic 310, "Receivables." During the second quarter of 2018, we determined that a modification of one commercial mortgage loan, secured by a retail center in Cincinnati, Ohio, with a principal balance of $169.0 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity that we are a part of and owns the underlying property was deemed to be a VIE and it was determined that we are not the primary beneficiary of that VIE. During the fourth quarter of 2018, we recorded a $15.0 million loan loss provision against this loan. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using the direct capitalization method. The significant unobservable inputs used in determining the collateral value were in-place net operating income and capitalization rate which were $10.5 million and 6.75% , respectively. As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5 and 4, respectively. We have recorded $10.0 million loan loss provision and impairment against a commercial mortgage loan secured by a fully-built, for-sale residential condominium units located in Bethesda, MD. This was comprised of (i) $5.0 million loan loss recorded during the second quarter of 2018, and (ii) $2.0 million loan loss provision and $3.0 million of impairment recorded during the second quarter of 2017. The impairment was recorded on an investment previously recorded under other assets on our consolidated balance sheet. The loan loss provision and impairment were based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision and related impairment). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were sales price per square foot and discount rate which were an average of $662 per square foot across properties and 15% , respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and accounts for the loan on a cost-recovery basis (all proceeds are applied towards the loan balance). As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5. During 2016, we recorded a loan loss provision of $10.0 million on a commercial mortgage loan and $5.0 million on a contiguous subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were terminal capitalization rate and discount rate which were 11% and 10% , respectively. The entity that we are a part of and owns the underlying property was deemed to be a VIE and it was determined that we are not the primary beneficiary of that VIE. We ceased accruing interest associated with the loan and only recognize interest income upon receipt of cash. As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5. During the year ended December 31, 2018, we sold a $75.0 million ( $17.7 million funded) subordinate position of our $265.0 million loans for the construction of an office campus in Renton, Washington. As of December 31, 2018, our exposure to the property is limited to a $190.0 million ( $82.0 million funded) mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualifies as a sale and accounted for as such. As of December 31, 2018 and 2017, the aggregate loan loss provision on our portfolio was $37.0 million and $17.0 million. During the years ended December 31, 2018, 2017 and 2016, we recognized PIK interest of $43.5 million, $25.2 million and $24.4 million, respectively. During the years ended December 31, 2018, 2017 and 2016, we recognized pre-payment penalties and accelerated fees of $2.3 million, $5.4 million and $5.2 million, respectively. Loan Proceeds Held by Servicer Loan proceeds held by servicer represents principal payments held by our third-party loan servicer as of the balance sheet date which were remitted to us subsequent to the balance sheet date. Loan proceeds held by servicer were $1.0 million and $302.8 million as of December 31, 2018 and 2017, respectively. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture In September 2014, we, through a wholly owned subsidiary, acquired a 59% ownership interest in Champ LP. We evaluated Champ LP to determine if it met the definition of a VIE in accordance with ASC 810, Consolidation. We determined that Champ LP met the definition of a VIE, however, we were not the primary beneficiary; therefore, we were not required to consolidate the assets and liabilities of the partnership in accordance with the authoritative guidance. Additionally, Champ LP is an Investment Company under GAAP, and is therefore reflected at fair value. Our investment in Champ LP was accounted for as an equity method investment and therefore we recorded our proportionate share of the net asset value in accordance with ASC 323, Investments - Equity Method and Joint Ventures . In May 2017, we sold our remaining ownership interest in Champ LP to unaffiliated third parties for €21.8 million or $24.5 million, resulting in a loss of $3.3 million. As of December 31, 2018 , we had no interest in Champ LP. |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loan Proceeds Held by Servicer | Commercial Mortgage and Subordinate Loans, Net Our loan portfolio was comprised of the following at December 31, 2018 and 2017 ($ in thousands): Loan Type December 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,878,981 $ 2,653,826 Subordinate loans, net 1,048,612 1,025,932 Total loans, net $ 4,927,593 $ 3,679,758 Our loan portfolio consisted of 91% and 88% floating rate loans, based on amortized cost, as of December 31, 2018 and 2017, respectively. Activity relating to our loan investment portfolio, for the year ended December 31, 2018 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 2,069,909 — — 2,069,909 Add-on loan fundings (3) 280,956 — — 280,956 Loan repayments (1,066,843 ) — — (1,066,843 ) Unrealized gain (loss) on foreign currency translation (51,202 ) 189 — (51,013 ) Provision for loan loss (2) — — (20,000 ) (20,000 ) Deferred fees and other items (1) — (34,066 ) — (34,066 ) PIK interest, amortization of fees and other items (1) 43,525 25,367 — 68,892 December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $37.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our consolidated balance sheet. (3) Represents fundings for loans closed prior to 2018. The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Number of loans 69 59 Principal balance $ 4,982,514 $ 3,706,169 Carrying value $ 4,927,593 $ 3,679,758 Unfunded loan commitments (1) $ 1,095,598 $ 435,627 Weighted-average cash coupon (2) 8.4 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Hotel $ 1,286,590 26.1 % $ 645,056 17.6 % Residential-for-sale: inventory (1) 577,053 11.7 % 92,438 2.5 % Residential-for-sale: construction (1) 528,510 10.7 % 349,739 9.5 % Office 832,620 16.9 % 513,830 14.0 % Urban Predevelopment 683,886 13.9 % 654,736 17.8 % Multifamily 448,899 9.1 % 465,057 12.6 % Healthcare 156,814 3.2 % 173,870 4.7 % Retail Center 156,067 3.2 % 198,913 5.4 % Other 151,197 3.1 % 154,141 4.2 % Mixed Use 73,957 1.5 % 354,640 9.6 % Industrial 32,000 0.6 % 77,338 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % (1) To conform to the current period’s presentation, loans with a combined carrying value of $442.2 million classified as residential-for-sale as of December 31, 2017 were broken out into $349.8 million of residential-for-sale: construction and $92.4 million of residential-for-sale: inventory. The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,669,145 33.9 % $ 1,173,833 31.9 % Brooklyn, NY 346,056 7.0 % 357,611 9.7 % Northeast 23,479 0.5 % 100,536 2.7 % Midwest 631,710 12.8 % 683,380 18.6 % West 614,160 12.5 % 227,024 6.2 % Southeast 559,043 11.3 % 531,582 14.4 % Mid Atlantic 211,775 4.3 % 191,976 5.2 % Southwest 96,345 2.0 % 33,615 0.9 % United Kingdom 700,460 14.2 % 303,488 8.3 % Other International 75,420 1.5 % 76,713 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % We assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1. Very low risk 2. Low risk 3. Moderate/average risk 4. High risk/potential for loss: a loan that has a risk of realizing a principal loss 5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or has been impaired The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 3 138,040 3 % 5 399,326 10 % 3 63 4,573,930 93 % 51 3,034,358 83 % 4 — — — % 1 168,208 5 % 5 3 215,623 4 % 2 77,866 2 % 69 $ 4,927,593 100 % 59 $ 3,679,758 100 % We evaluate our loans for possible impairment on a quarterly basis. We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash 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 property’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 properties. In addition, we consider the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. Such loan loss analysis is completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. An allowance for loan loss is established when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. We evaluate modifications to our loan portfolio to determine if the modifications constitute a troubled debt restructuring ("TDR") and/or substantial modification, under ASC Topic 310, "Receivables." During the second quarter of 2018, we determined that a modification of one commercial mortgage loan, secured by a retail center in Cincinnati, Ohio, with a principal balance of $169.0 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity that we are a part of and owns the underlying property was deemed to be a VIE and it was determined that we are not the primary beneficiary of that VIE. During the fourth quarter of 2018, we recorded a $15.0 million loan loss provision against this loan. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using the direct capitalization method. The significant unobservable inputs used in determining the collateral value were in-place net operating income and capitalization rate which were $10.5 million and 6.75% , respectively. As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5 and 4, respectively. We have recorded $10.0 million loan loss provision and impairment against a commercial mortgage loan secured by a fully-built, for-sale residential condominium units located in Bethesda, MD. This was comprised of (i) $5.0 million loan loss recorded during the second quarter of 2018, and (ii) $2.0 million loan loss provision and $3.0 million of impairment recorded during the second quarter of 2017. The impairment was recorded on an investment previously recorded under other assets on our consolidated balance sheet. The loan loss provision and impairment were based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision and related impairment). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were sales price per square foot and discount rate which were an average of $662 per square foot across properties and 15% , respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and accounts for the loan on a cost-recovery basis (all proceeds are applied towards the loan balance). As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5. During 2016, we recorded a loan loss provision of $10.0 million on a commercial mortgage loan and $5.0 million on a contiguous subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were terminal capitalization rate and discount rate which were 11% and 10% , respectively. The entity that we are a part of and owns the underlying property was deemed to be a VIE and it was determined that we are not the primary beneficiary of that VIE. We ceased accruing interest associated with the loan and only recognize interest income upon receipt of cash. As of December 31, 2018 and 2017, this loan was assigned a risk rating of 5. During the year ended December 31, 2018, we sold a $75.0 million ( $17.7 million funded) subordinate position of our $265.0 million loans for the construction of an office campus in Renton, Washington. As of December 31, 2018, our exposure to the property is limited to a $190.0 million ( $82.0 million funded) mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualifies as a sale and accounted for as such. As of December 31, 2018 and 2017, the aggregate loan loss provision on our portfolio was $37.0 million and $17.0 million. During the years ended December 31, 2018, 2017 and 2016, we recognized PIK interest of $43.5 million, $25.2 million and $24.4 million, respectively. During the years ended December 31, 2018, 2017 and 2016, we recognized pre-payment penalties and accelerated fees of $2.3 million, $5.4 million and $5.2 million, respectively. Loan Proceeds Held by Servicer Loan proceeds held by servicer represents principal payments held by our third-party loan servicer as of the balance sheet date which were remitted to us subsequent to the balance sheet date. Loan proceeds held by servicer were $1.0 million and $302.8 million as of December 31, 2018 and 2017, respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table details the components of our other assets at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Interest receivable $ 33,399 $ 23,101 Collateral deposited under derivative agreements — 4,930 Other 321 389 Total $ 33,720 $ 28,420 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Secured Debt Arrangements, Net | Secured Debt Arrangements, Net At December 31, 2018 and 2017, our borrowings had the following secured debt arrangements, maturities and weighted- average interest rates ($ in thousands): December 31, 2018 (2) December 31, 2017 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted- JPMorgan Facility (USD) $ 1,333,503 $ 680,141 June 2021 $ 1,393,000 $ 944,529 March 2020 USD L + 2.30% JPMorgan Facility (GBP) 48,497 48,497 June 2021 N/A N/A N/A N/A DB Repurchase Facility (USD) 904,181 419,823 March 2021 472,090 225,367 March 2020 USD L + 2.56% DB Repurchase Facility (GBP) 150,819 150,819 March 2021 93,919 93,919 March 2020 GBP L + 2.60% Goldman Facility 300,000 210,072 November 2020 331,130 81,380 November 2020 USD L + 2.73% CS Facility (USD) 187,117 187,117 June 2019 N/A N/A N/A N/A CS Facility (GBP) 151,773 151,773 June 2019 N/A N/A N/A N/A HSBC Facility (GBP) 48,835 48,835 December 2019 N/A N/A N/A N/A Sub-total 3,124,725 1,897,077 2,290,139 1,345,195 less: deferred financing costs N/A (17,555 ) N/A (14,348 ) N/A Total / Weighted-Average $ 3,124,725 $ 1,879,522 $2,290,139 $1,330,847 USD L + 2.37% / GBP L + 2.60% ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rate as of December 31, 2018 was USD L + 2.17% / GBP L + 2.28% . JPMorgan Facility In May 2017, through two indirect wholly-owned subsidiaries, we entered into the Fifth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association. The JPMorgan Facility provides for maximum total borrowing capacity of $ 1.4 billion, comprised of a $ 1.25 billion repurchase facility and a $ 132.0 million asset specific financing and enables us to elect to receive advances in either U.S. dollars, GBP, or EUR. The repurchase facility matures in June 2020, plus a one -year extension available at our option, subject to certain conditions. The asset specific financing matures in February 2019. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under the JPMorgan Facility. As of December 31, 2018 , we had $728.6 million (including £ 38.0 million assuming conversion into U.S. dollars) of borrowings outstanding under the JPMorgan Facility secured by certain of our commercial mortgage loans. DB Repurchase Facility In April 2018, through an indirect wholly-owned subsidiary, we entered into a Second Amended and Restated Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch, which was upsized in September 2018, and provides for advances of up to $1.0 billion for the sale and repurchase of eligible first mortgage loans secured by commercial or multifamily properties located in the United States, United Kingdom and the European Union, and enables us to elect to receive advances in either U.S. dollars, GBP, or EUR. Additionally, we have a $54.7 million of asset specific financing with Deutsche Bank in connection with financing a first mortgage loan secured by real estate. The repurchase facility matures in March 2020, plus a one -year extension available at our option, subject to certain conditions. The asset specific financing matures in April 2019. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of December 31, 2018 , we had $ 570.6 million (including £ 118.3 million assuming conversion into U.S. dollars) of borrowings outstanding under the DB Repurchase Facility secured by certain of our commercial mortgage loans. Goldman Facility In November 2017, through an indirect wholly-owned subsidiary, we entered into a master repurchase and securities contract agreement with Goldman Sachs Bank USA, which provides for advances of up to $300.0 million and matures in November 2019, plus a one -year extension available at our option, subject to certain conditions. Margin calls may occur any time at specified margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of the seller under the Goldman Facility. As of December 31, 2018 , we had total borrowings of $210.1 million of borrowings outstanding under the Goldman Facility. CS Facility - USD In July 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd, which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - USD matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of December 31, 2018 , we had total borrowings of $187.1 million of borrowings outstanding under the CS Facility - USD secured by certain of our commercial mortgage loans. CS Facility - GBP In June 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd, which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - GBP matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of December 31, 2018 , we had total borrowings of $151.8 million (£ 119.0 million assuming conversion into U.S. dollars) of borrowings outstanding under the CS Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility In September 2018, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement with HSBC Bank plc, which provides for a single asset financing. The facility matures in December 2019 and unless terminated by either party, automatically extends for further periods prior to maturity. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of December 31, 2018 , we had total borrowings of $48.8 million ( £38.3 million assuming conversion into U.S. dollars) of borrowings outstanding under the HSBC Facility secured by one of our commercial mortgage loans. At December 31, 2018 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 153,759 $ 574,879 $ — $ — $ 728,638 DB Repurchase Facility 174,293 396,349 — — 570,642 Goldman Facility — 210,072 — — 210,072 CS Facility - USD 187,117 — — — 187,117 CS Facility - GBP 151,773 — — — 151,773 HSBC Facility 48,835 — — — 48,835 Total $ 715,777 $ 1,181,300 $ — $ — $ 1,897,077 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. The table below summarizes the outstanding balances at December 31, 2018 , as well as the maximum and average month-end balances for the year ended December 31, 2018 for our borrowings under secured debt arrangements ($ in thousands). For the year ended December 31, 2018 Balance at December 31, 2018 Amortized Cost of collateral at December 31, 2018 Maximum Month-End Average Month-End JPMorgan Facility $ 728,638 $ 1,374,235 $ 1,000,854 $ 885,203 DB Repurchase Facility 570,642 921,424 707,405 524,727 Goldman Facility 210,072 362,577 261,691 176,145 CS Facility - USD 187,117 254,064 189,839 109,453 CS Facility - GBP 151,773 216,167 151,915 147,651 HSBC Facility 48,835 69,433 49,896 49,107 Total $ 1,897,077 $ 3,197,900 We were in compliance with the covenants under each of our secured debt arrangements at December 31, 2018 and 2017. |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net In two separate offerings during 2014, we issued an aggregate principal amount of $254.8 million of 2019 Notes, for which we received aggregate net proceeds of approximately $248.6 million , after deducting the underwriting discount and estimated offering expenses payable by us. During the year ended December 31, 2018 , we exchanged or converted $220.3 million in aggregate principal of the 2019 Notes as follows: (i) on August 2, 2018, we entered into privately negotiated exchange agreements with a limited number of holders of the 2019 Notes pursuant to which we exchanged $206.2 million of the 2019 Notes for an aggregate of (a) 10,020,328 newly issued shares of our common stock, and (b) $39.3 million in cash. We recorded $166.0 million of additional paid-in-capital in the consolidated statement of changes in stockholders' equity in connection with these transactions, (ii) certain holders elected to convert $14.1 million of the 2019 Notes through multiple transactions for an aggregate of (a) 808,148 newly issued shares of our common stock, and (b) $0.2 million in cash. We recorded $13.9 million of additional paid-in-capital in the consolidated statement of changes in stockholders' equity in connection with these transactions. During the year ended December 31, 2018 , we recorded a loss on early extinguishment of debt of $2.6 million , in connection with the exchange and conversions of the 2019 Notes. This includes fees and accelerated amortization of capitalized costs. There was no such loss related to the 2019 Notes during the years ended December 31, 2017 and 2016. At December 31, 2018 , the outstanding 2019 Notes had a carrying value of $34.3 million and an unamortized discount of $0.2 million . In two separate offerings during 2017, we issued an aggregate principal amount of $345.0 million of the 2022 Notes, for which we received aggregate net proceeds of approximately $337.5 million , after deducting the underwriting discount and offering expenses payable by us. At December 31, 2018, the 2022 Notes had a carrying value of $335.3 million and an unamortized discount of $9.7 million . During the fourth quarter of 2018, we issued $230.0 million in 2023 Notes, for which we received net proceeds of approximately $223.7 million, after deducting the underwriting discount and offering expenses payable by us. At December 31, 2018 , the 2023 Notes had a carrying value of $222.4 million and an unamortized discount of $7.6 million. The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2019 Notes $ 34,482 5.50 % 8.31 % 58.2442 3/15/2019 0.21 years 2022 Notes 345,000 4.75 % 5.60 % 50.2260 8/23/2022 3.65 years 2023 Notes 230,000 5.375 % 6.16 % 48.7187 10/15/2023 4.79 years Total $ 609,482 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See endnote (2) below), the value of which reduced the initial liability and was recorded in additional paid-in-capital. (2) We have the option to settle any conversions in cash, shares of common stock or a combination thereof. The conversion rate represents the number of shares of common stock issuable per one thousand principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by us to stockholders that have been deferred and carried-forward in accordance with, and are not yet required to be made pursuant to, the terms of the applicable supplemental indenture. We may not redeem the Notes prior to maturity except in limited circumstances. The closing price of our common stock on December 31, 2018 of $16.66 was less than the per share conversion price of the Notes. As of September 30, 2018, we no longer asserted our intent to fully settle the principal amount of the Notes in cash upon conversion. On December 14, 2018, pursuant to the terms of the indenture governing the 2019 Notes, we elected to settle conversions on or after December 15, 2018 of the remaining principal of the 2019 Notes, due March 15, 2019, through issuance of shares of our common stock. Noteholders may elect to convert their 2019 Notes to common stock at any time prior to the close of business on March 13, 2019, which is the second trading day immediately preceding the maturity date. The noteholders, if any, that do not convert their 2019 Notes prior to such date will be paid the outstanding principal amount plus accrued and unpaid interest on the maturity date. In accordance with ASC 470 - Debt, the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) is to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. GAAP requires that the initial proceeds from the sale of the Notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by us at such time. We measured the fair value of the debt components of the Notes as of their issuance date based on effective interest rates. As a result, we attributed approximately $26.8 million of the proceeds to the equity component of the Notes ( $11.4 million to the 2019 Notes, $11.0 million to the 2022 Notes and $4.4 million to the 2023 Notes), which represents the excess proceeds received over the fair value of the liability component of the Notes at the date of issuance. The equity component of the Notes has been reflected within additional paid-in capital in the consolidated balance sheet as of December 31, 2018 . The resulting debt discount is being amortized over the period during which the Notes are expected to be outstanding (the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to each of the Notes will increase in subsequent reporting periods through the maturity date as the Notes accrete to their par value over the same period. When there is a partial or full exchange or conversion of the Notes, we measure the fair value of the debt component on the exchange or conversion date. The fair value of the debt component of the exchanged and converted 2019 Notes exceeded the total consideration to exchange or convert those Notes by $27.2 million, which has been reflected within additional paid-in capital in the consolidated balance sheet as of December 31, 2018 . The aggregate contractual interest expense was approximately $28.2 million, $18.7 million and $14.0 million for the years ended December 31, 2018, 2017 and 2016, respectively. With respect to the amortization of the discount on the liability component of the Notes as well as the amortization of deferred financing costs, we reported additional non-cash interest expense of approximately $7.1 million, $4.7 million and $3.5 million for the years ended December 31, 2018, 2017 and 2016, respectively. |
Derivatives, Net
Derivatives, Net | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Net | Derivatives, Net We use forward currency contracts to economically hedge interest and principal payments due under our loans denominated in currencies other than U.S. dollars. We have entered into a series of forward contracts to sell an amount of foreign currency (British pounds) for an agreed upon amount of U.S. dollars at various dates through November 2020. These forward contracts were executed to economically fix the U.S. dollar amounts of foreign denominated cash flows expected to be received by us related to foreign denominated loan investments. The following table summarizes our non-designated foreign exchange ("Fx") forwards as of December 31, 2018 : Type of Derivative December 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 The following table summarizes our non-designated Fx forwards as of December 31, 2017 : Type of Derivative December 31, 2017 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 24 177,077 GBP January 2018- November 2020 We have not designated any of our derivative instruments as hedges as defined in ASC 815 " Derivatives and Hedging" and, therefore, changes in the fair value of our derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the consolidated statements of operations related to our derivatives for the years ended December 31, 2018 , 2017 and 2016 ($ in thousands): Amount of gain (loss) recognized in income Location of Gain (Loss) Recognized in Income 2018 2017 2016 Forward currency contracts Gain (loss) on derivative instruments - unrealized $ 29,345 $ (11,527 ) $ 2,665 Forward currency contracts Gain (loss) on derivative instruments - realized 9,713 (7,657 ) 28,552 Interest rate caps (1) Gain (loss) on derivative instruments - unrealized — 4 (57 ) Sub-total $ 39,058 $ (19,180 ) $ 31,160 Forward currency contracts Loss from unconsolidated joint venture — (587 ) — Total $ 39,058 $ (19,767 ) $ 31,160 ——————— (1) With a notional amount of $34.9 million, $40.2 million and $45.5 million at December 31, 2018 , 2017 and 2016 , respectively. The following table summarizes the gross asset and liability amounts related to our derivatives at December 31, 2018 and 2017 ($ in thousands). December 31, 2018 December 31, 2017 Gross Gross Net Amounts Gross Gross Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheet Interest rate caps $ — $ — $ — $ — $ 1 $ 1 Forward currency contracts 23,753 (53 ) 23,700 (5,645 ) — (5,645 ) Total derivative instruments $ 23,753 $ (53 ) $ 23,700 $ (5,645 ) $ 1 $ (5,644 ) |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities The following table details the components of our accounts payable, accrued expense and other liabilities ($ in thousands): December 31, 2018 December 31, 2017 Accrued dividends payable $ 69,033 $ 56,576 Collateral deposited under derivative agreements 20,000 — Accrued interest payable 14,208 12,796 Accounts payable and other liabilities 1,505 1,534 Total $ 104,746 $ 70,906 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions AMTG Merger As fully described in "Note 19- Business Combination", in August 2016, we acquired AMTG, an entity managed by an affiliate of Apollo. Management Agreement In connection with our initial public offering in September 2009, we entered into a management agreement (the "Management Agreement") with the Manager, which describes the services to be provided by the Manager and its compensation for those services. The Manager is responsible for managing our day-to-day operations, subject to the direction and oversight of our board of directors. Pursuant to the terms of the Management Agreement, the Manager is paid a base management fee equal to 1.5% per annum of our stockholders’ equity (as defined in the Management Agreement), calculated and payable (in cash) quarterly in arrears. The current term of the Management Agreement was renewed during the period and expires on September 29, 2019 and is automatically renewed for successive one -year terms on each anniversary thereafter. The Management Agreement may be terminated upon expiration of the one -year extension term only upon the affirmative vote of at least two-thirds of our independent directors, based upon (1) unsatisfactory performance by the Manager that is materially detrimental to ARI or (2) a determination that the management fee payable to the Manager is not fair, subject to the Manager’s right to prevent such a termination based on unfair fees by accepting a mutually acceptable reduction of management fees agreed to by at least two-thirds of our independent directors. The Manager must be provided with written notice of any such termination at least 180 days prior to the expiration of the then existing term and will be paid a termination fee equal to three times the sum of the average annual base management fee during the 24 -month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Following a meeting by our independent directors in February 2018, which included a discussion of the Manager’s performance and the level of the management fees thereunder, we determined not to seek termination of the Management Agreement. For 2018, 2017, and 2016, respectively, we incurred approximately $36.4 million, $31.7 million, and $23.4 million in base management fees under the Management Agreement. In addition to the base management fee, we are also responsible for reimbursing the Manager for certain expenses paid by the Manager on our behalf or for certain services provided by the Manager to us. For 2018, 2017, and 2016, respectively, we paid expenses totaling $3.1 million, $2.6 million, and $2.5 million related to reimbursements for certain expenses paid by the Manager on our behalf under the Management Agreement. Expenses incurred by the Manager and reimbursed by us are reflected in the respective consolidated statement of operations expense category or the consolidated balance sheet based on the nature of the item. Included in payable to related party on the consolidated balance sheet at December 31, 2018 and 2017 are approximately $9.8 million and $8.2 million, respectively, for base management fees incurred but not yet paid under the Management Agreement. Unconsolidated Joint Venture In September 2014, through a wholly owned subsidiary, we acquired a 59% ownership interest in Champ LP. In May 2017, we sold our remaining ownership interest in Champ LP, to unaffiliated third parties. As such, in 2018 we no longer held any interest in Champ LP. Loans receivable In June 2017, we increased our outstanding loan commitment through the acquisition of an additional $25.0 million of interests in an existing subordinate loan from a fund managed by an affiliate of the Manager, increasing our total outstanding loan commitment to $100.0 million . Furthermore, in September 2017 we funded an additional $25.0 million to acquire a portion of the same pre-development subordinate loan from a fund managed by an affiliate of the Manager, increasing our total outstanding loan commitment to $125.0 million . In May 2018, we increased our outstanding principal balance through the acquisition of an additional $28.2 million interest in the same subordinate loan from a fund managed by an affiliate of the Manager. The pre-development subordinate loan is for the construction of a residential condominium building in New York, New York and is part of a $300.0 million subordinate loan. In June 2018, we increased our outstanding loan commitment through the acquisition of £4.8 million ( $6.4 million assuming conversion into U.S. dollars) pari-passu interest in an existing subordinate loan from a fund managed by an affiliate of the Manager. The subordinate loan is secured by a healthcare portfolio located in the United Kingdom. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments On September 23, 2009, our board of directors approved the Apollo Commercial Real Estate Finance, Inc., 2009 Equity Incentive Plan (as amended from time to time, the "LTIP"). The LTIP provides for grants of restricted common stock, RSUs and other equity-based awards up to an aggregate of 7.5% of the issued and outstanding shares of our common stock. The LTIP is administered by the compensation committee of our board of directors (the "Compensation Committee") and all grants under the LTIP must be approved by the Compensation Committee. We recognized stock-based compensation expense of $13.6 million, $13.3 million and $7.1 million during 2018, 2017 and 2016, respectively, related to restricted stock and RSU vesting. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during 2018, 2017 and 2016: Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) Outstanding at December 31, 2015 107,385 1,242,810 Grant 92,056 903,068 16,477 Vested (49,331 ) (397,030 ) N/A Forfeiture — (45,073 ) N/A Outstanding at December 31, 2016 150,110 1,703,775 Grant 27,700 912,916 17,496 Vested (72,249 ) (938,541 ) N/A Forfeiture — (45,404 ) N/A Outstanding at December 31, 2017 105,561 1,632,746 Grant 28,070 1,006,800 19,148 Vested (67,934 ) (739,388 ) N/A Forfeiture — (47,201 ) N/A Outstanding at December 31, 2018 65,697 1,852,957 Below is a summary of restricted stock and RSU vesting dates as of December 31, 2018 : Vesting Year Restricted Stock RSU Total Awards 2019 60,803 889,734 950,537 2020 4,894 628,310 633,204 2021 — 334,913 334,913 Total 65,697 1,852,957 1,918,654 At December 31, 2018 , we had unrecognized compensation expense of approximately $30.8 million and $0.8 million, respectively, related to the vesting of RSUs and restricted stock awards noted in the table above. RSU Deliveries During 2018, 2017 and 2016, respectively, we delivered 378,855 , 200,859 and 236,782 shares of common stock for 741,210 , 938,541 and 397,030 vested RSUs, respectively. We allow RSU participants to settle their tax liabilities with a reduction of their share delivery from the originally granted and vested RSUs. The amount, when agreed to by the participant, results in a cash payment to the Manager related to this tax liability and a corresponding adjustment to additional paid in capital on the consolidated statement of changes in stockholders' equity. The adjustments were $4.8 million, $2.3 million and $2.6 million in 2018, 2017 and 2016, respectively and is included as a reduction of capital related to our equity incentive plan in the consolidated statement of changes in stockholders' equity. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Our authorized capital stock consists of 450,000,000 shares of common stock, $0.01 par value per share and 50,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2018 , 133,853,565 shares of common stock were issued and outstanding, 6,770,393 shares of Series B Preferred Stock were issued and outstanding, and 6,900,000 shares of Series C Preferred Stock were issued and outstanding. In October 2017, we concurrently entered into a common stock purchase agreement and a preferred stock repurchase agreement with QHREAC. Pursuant to the agreements, (i) QHREAC purchased 1,670,000 shares of our common stock, par value $0.01 per share, for cash at an aggregate purchase price of $30.8 million ( $18.44 per share), and (ii) we repurchased from QHREAC 1,229,607 shares of our Series B Preferred Stock, par value $0.01 per share, for an aggregate purchase price of $30.8 million (approximately $25.04 per share, made up of $25.00 liquidation value per share, plus $0.04 per share of accumulated and unpaid dividends to, but not including, the closing date of the transaction). In August 2017, we redeemed all 3,450,000 shares of Series A Preferred Stock. Holders of the Series A Preferred Stock received the redemption price of $25.00 plus accumulated but unpaid dividends to the redemption date of $0.1079 per share. Dividends. During 2018 , 2017 and 2016, we declared the following dividends: Dividend declared per share of: 2018 2017 2016 Common Stock (1) $1.84 $1.84 $1.84 Series A Preferred Stock (2) N/A 1.19 2.16 Series B Preferred Stock 2.00 2.00 2.00 Series C Preferred Stock 2.00 2.00 1.00 ——————— (1) As our aggregate 2018 distributions exceeded our earnings and profits, $0.46 of the January 2019 distribution declared in the fourth quarter of 2018 are payable to common stockholders of record as of December 31, 2018 will be treated as a 2019 distribution for U.S. federal income tax purposes. (2) The Series A Preferred Stock shares were redeemed in full in August 2017. Common Stock Issuances. During the first quarter of 2018, we completed a follow-on public offering of 15,525,000 shares of our common stock, at a price of $17.77 per share. The aggregate net proceeds from the offering, including proceeds from the sale of the additional shares, were approximately $275.9 million after deducting the underwriting discount and estimated offering expenses payable by us. During 2018, we issued 10,828,475 shares of our common stock related to exchanges and conversions of the 2019 Notes. Refer to "Note 10 - Convertible Senior Notes, Net" for a further discussion on the exchanges and conversions of the 2019 Notes. During the second quarter of 2017, we completed a follow-on public offering of 13,800,000 shares of our common stock, at a price of $18.05 per share. The aggregate net proceeds from the offering, including proceeds from the sale of the additional shares, were approximately $248.9 million after deducting estimated offering expenses payable by us. During the fourth quarter of 2016, we completed a follow-on public offering of 10,500,000 shares of our common stock, at a price of $16.97 per share. The aggregate net proceeds from the offering, including proceeds from the sale of the additional shares, were approximately $177.8 million after deducting estimated offering expenses payable by us. AMTG Merger. In addition, we issued common and preferred equity in connection with the AMTG Merger as described in "Note 19 - Business Combination." |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings. From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. On June 28, 2018, AmBase Corporation, 111 West 57th Street Manager Funding LLC and 111 West 57th Investment LLC commenced an action captioned AmBase Corporation et al v. ACREFI Mortgage Lending, LLC et al (No. 653251/2018) in New York Supreme Court. The complaint names as defendants (i) ACREFI Mortgage Lending, LLC, a subsidiary of the Company, (ii) the Company, and (iii) certain funds managed by Apollo, who are co-lenders on a mezzanine loan against the development of a residential condominium building in Manhattan, New York. The plaintiffs allege that the defendants tortiously interfered with the contractual equity put right in the plaintiffs’ joint venture agreement with the developers of the project, and that the defendants aided and abetted breaches of fiduciary duty by the developers of the project. The plaintiffs allege the loss of a $70.0 million investment as part of total damages of $700.0 million , which includes punitive damages. The defendants moved to dismiss the complaint on August 17, 2018, and the motion was fully briefed in October 2018. Oral argument is scheduled for February 2019. We believe the claims are without merit and plan to vigorously defend the case. On January 4, 2017, the United States Department of Justice served the Request on the Company, in connection with a preliminary investigation into certain aspects of our former residential real estate portfolio, which we acquired in connection with the merger of Apollo Residential Mortgage, Inc. with and into the Company and subsequently sold in 2016. The Request sought a range of information in connection with the residential real estate portfolio, including, among other things, information concerning policies, procedures, and practices related to advertising, marketing, identifying, or acquiring residential properties for sale or rent, and various data for all rental and sales contracts executed since January 1, 2012. We fully cooperated with the Department of Justice, and were advised, by a letter dated May 2, 2018, that the Department of Justice did not intend to take any further actions in this matter as it relates to us. Loan Commitments. As described in "Note 5 - Commercial Mortgage and Subordinate Loans, Net," at December 31, 2018 , we had $1.1 billion of unfunded commitments related to our commercial mortgage and subordinate loan portfolios. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the consolidated balance sheet at December 31, 2018 and 2017 ($ in thousands): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 109,806 $ 109,806 $ 77,671 $ 77,671 Commercial first mortgage loans, net 3,878,981 3,894,947 2,653,826 2,657,262 Subordinate loans, net 1,048,612 1,047,854 1,025,932 1,029,390 Secured debt arrangements (1,897,077 ) (1,897,077 ) (1,345,195 ) (1,345,195 ) 2019 Notes (34,278 ) (35,276 ) (251,935 ) (276,506 ) 2022 Notes (335,291 ) (326,025 ) (332,962 ) (350,175 ) 2023 Notes (222,431 ) (221,964 ) — — To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount we could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. Estimates of fair value for cash and cash equivalents and convertible senior notes, net are measured using observable Level I inputs as defined in "Note 3 - Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 - Fair Value Disclosure." |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income per Share ASC 260 "Earnings per share" requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock. The table below presents the computation of basic and diluted net income per share of common stock for the years ended December 31, 2018, 2017 and 2016 ($ in thousands except per share data): For the year ended 2018 2017 2016 Basic Earnings Net income $ 219,986 $ 193,031 $ 157,876 Less: Preferred dividends (27,340 ) (36,761 ) (30,295 ) Net income available to common stockholders $ 192,646 $ 156,270 $ 127,581 Less: Dividends on participating securities (3,405 ) (2,913 ) (2,087 ) Basic Earnings $ 189,241 $ 153,357 $ 125,494 Diluted Earnings Net income $ 219,986 $ 193,031 $ 157,876 Less: Preferred dividends (27,340 ) (36,761 ) (30,295 ) Net income available to common stockholders $ 192,646 $ 156,270 $ 127,581 Add: Interest expense on Notes 34,779 N/A N/A Diluted Earnings $ 227,425 $ 156,270 $ 127,581 Number of Shares: Basic weighted-average shares of common stock outstanding 124,147,073 99,859,153 72,371,374 Diluted weighted-average shares of common stock outstanding 153,821,515 101,232,610 73,305,101 Earnings Per Share Attributable to common stockholders Basic $ 1.52 $ 1.54 $ 1.74 Diluted $ 1.48 $ 1.54 $ 1.74 Prior to the three months ended September 30, 2018, we asserted our intent and ability to settle the principal amount of the Notes in cash and, as a result, the Notes did not have any impact on our diluted earnings per share. As of September 30, 2018, we no longer asserted our intent to fully settle the principal amount of the Notes in cash upon conversion. Accordingly, the dilutive effect to earnings per share for the current year periods is determined using the "if-converted" method whereby interest expense on the outstanding Notes is added back to the diluted earnings per share numerator and all of the potentially dilutive shares are included in the diluted earnings per share denominator. For the year ended December 31, 2018, 29,674,442 weighted-average potentially issuable shares from the Notes were included in the dilutive earnings per share denominator. Refer to "Note 10 - Convertible Senior Notes, Net" for further discussion. For the years ended December 31, 2018, 2017 and 2016, 1,612,676 , 1,373,457 and 933,727 weighted-average unvested RSUs, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On August 31, 2016, we, pursuant to the terms and conditions of the AMTG Merger Agreement, acquired AMTG for consideration of common stock and preferred stock, as applicable and cash. AMTG merged with and into ARI, with ARI continuing as the surviving entity. As a result, all operations of AMTG and its former subsidiaries are consolidated with our operations. In connection with financing the AMTG Merger, on August 31, 2016, we entered into a Loan Agreement (the "Athene Loan Agreement") with Athene USA Corporation, a subsidiary of Athene Holding Ltd., as lender ("Athene USA"), pursuant to which we borrowed $175.0 million in order to fund a portion of our obligations under the AMTG Merger Agreement. The Athene Loan Agreement was repaid in full and terminated on September 1, 2016. On August 31, 2016, pursuant to an Asset Purchase and Sale Agreement, dated February 26, 2016 (as amended, the "Asset Purchase Agreement") by and among Athene Annuity & Life Assurance Company and Athene Annuity and Life Company (collectively, "Athene Annuity") and us, we sold primarily non-agency residential mortgage backed securities previously held by AMTG to Athene Annuity for cash consideration of approximately $1.1 billion. Proceeds from the sale were used to repay approximately $804.0 million in associated financing, $175.0 million to satisfy the Athene Loan Agreement and for general corporate purposes. All of the assets acquired from AMTG were sold during 2016. The AMTG Merger was accounted for as a business combination in accordance with ASC 805, Business Combinations. The transactions pursuant to the Athene Loan Agreement and the Asset Purchase Agreement were contemporaneous with and contingent on the AMTG Merger, therefore we recorded the transaction net. We were designated as the accounting acquirer. The total purchase price has been allocated based upon management’s estimates of fair value. The difference between the fair value of net assets of AMTG and the consideration was recorded as a bargain purchase gain. The bargain purchase gain was computed as follows: Consideration Paid: $ (in thousands) Cash $ 220,159 Common stock issued 218,397 Preferred stock assumed 172,500 Total consideration paid $ 611,056 Assets acquired: Cash and cash equivalents 399,402 Restricted cash 10,552 Investments 1,491,484 Other assets 34,822 Liabilities assumed: Borrowings under repurchase agreements (1,254,518 ) Other liabilities (30,665 ) Net assets acquired 651,077 Bargain purchase gain $ 40,021 We incurred $11.4 million of transaction-related expenses related to the AMTG Merger during the year ended December 31, 2016. Transaction-related expenses are comprised primarily of transaction fees and AMTG Merger costs, including legal, finance, consulting, professional fees and other third-party costs. The following table provides the pro forma consolidated operational data as if the AMTG Merger had occurred on January 1, 2016: Year ended (in thousands, except per share data) December 31, 2016 Total revenue $ 349,948 Net income attributable to common stockholders 89,877 Common shares outstanding at December 31, 2016 91,422,676 Net income per common share, basic and diluted $ 0.98 The pro forma consolidated operational data is based on assumptions and estimates considered appropriate by our management; however, these pro forma results are not necessarily indicative of the results of operations that would have been obtained had the AMTG Merger occurred at the beginning of the period presented, nor do they purport to represent the consolidated results of operations for future periods. The pro forma consolidated operational data does not include the impact of any synergies that may be achieved from the AMTG Merger or any strategies that management may consider in order to continue to efficiently manage operations. |
Summarized Quarterly Results (U
Summarized Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Results (Unaudited) | Summarized Quarterly Results (Unaudited) ($ in thousands except per share data) March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Net interest income: Interest income from commercial mortgage loans $ 52,114 $ 34,398 $ 65,141 $ 37,089 $ 71,179 $ 41,203 $ 75,275 $ 45,942 Interest income from subordinate loans 33,853 34,390 34,075 39,640 37,308 47,268 34,944 43,993 Interest income from securities — 6,054 — 4,700 — 2,625 — 1,219 Interest expense (22,740 ) (17,030 ) (28,437 ) (19,205 ) (31,007 ) (19,855 ) (32,413 ) (21,967 ) Net interest income 63,227 57,812 70,779 62,224 77,480 71,241 77,806 69,187 Operating expenses: General and administrative expenses (4,998 ) (5,758 ) (5,652 ) (5,200 ) (5,843 ) (4,629 ) (3,977 ) (5,138 ) Management fees to related party (8,092 ) (7,432 ) (9,013 ) (7,742 ) (9,515 ) (8,309 ) (9,804 ) (8,169 ) Total operating expenses (13,090 ) (13,190 ) (14,665 ) (12,942 ) (15,358 ) (12,938 ) (13,781 ) (13,307 ) Income (loss) from unconsolidated joint venture — 458 — (3,305 ) — — — — Other income 203 108 343 244 427 359 465 229 Provision for loan losses and impairments — — (5,000 ) (5,000 ) — — (15,000 ) — Realized loss on sale of assets — (1,042 ) — — — (4,076 ) — (37,575 ) Unrealized gain (loss) on securities — 2,852 — (4,510 ) — 13,488 — 25,335 Foreign currency gain (loss) 10,125 3,172 (29,649 ) 6,913 (4,050 ) 7,763 (6,761 ) 658 Loss on early extinguishment of debt — — — — (2,573 ) — — (1,947 ) Gain (loss) on derivative instruments (11,032 ) (3,045 ) 33,538 (7,389 ) 6,291 (7,481 ) 10,261 (1,265 ) Net income $ 49,433 $ 47,125 $ 55,346 $ 36,235 $ 62,217 $ 68,356 $ 52,990 $ 41,315 Preferred dividends (6,835 ) (9,310 ) (6,834 ) (9,310 ) (6,836 ) (11,148 ) (6,835 ) (6,993 ) Net income available to common stockholders $ 42,598 $ 37,815 $ 48,512 $ 26,925 $ 55,381 $ 57,208 $ 46,155 $ 34,322 Net income per share of common stock: Basic $ 0.38 $ 0.41 $ 0.39 $ 0.28 $ 0.42 $ 0.54 $ 0.34 $ 0.32 Diluted $ 0.38 $ 0.41 $ 0.39 $ 0.28 $ 0.40 $ 0.54 $ 0.34 $ 0.32 Basic weighted-average shares of common stock outstanding 110,211,853 91,612,447 123,019,993 95,428,134 129,188,343 105,446,704 133,852,915 106,721,887 Diluted weighted-average shares of common stock outstanding 111,871,429 92,998,250 124,629,317 96,796,289 153,918,435 106,812,721 163,900,633 108,095,950 Dividend declared per share of common stock $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment activity . Subsequent to the end of the quarter, we committed capital of $203.8 million ( $197.0 million of which was funded at closing) and $228.0 million (all of which was funded at closing), of first mortgage loans and subordinate loans, respectively. In addition, we funded approximately $65.2 million for loans closed prior to the quarter. Loan Repayments. S ubsequent to the end of the quarter, we received approximately $213.9 million from loan repayments. |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Schedule IV — Mortgage Loans on Real Estate ($ in thousands) December 31, 2018 Description Number of Loans Property Type Contractual Interest Rate (1) Maturity Date (2) Periodic Payment Principal Balance Carrying Value Principal Amount of Mortgages Subject to Delinquent Principal or Interest Commercial mortgage loans individually >3% Loan A Urban Predevelopment 8.80% Jul 2019 Interest Only $220,000 $222,017 — Loan B Residential-for-sale: inventory 7.20% Mar 2021 Interest Only 216,818 216,168 — Loan C Hotel 7.00% Jan 2022 Interest Only 215,000 215,323 — Loan D Urban Predevelopment 5.90% Mar 2019 Interest Only 178,556 178,117 — Loan E Office 5.90% Oct 2021 Interest Only 177,617 176,260 — Loan F Office 7.30% Jan 2023 Principal and Interest 172,626 171,312 — Loan G Retail Center 5.50% Sep 2020 Interest Only 169,035 156,067 — Loan H Hotel 5.80% Apr 2023 Interest Only 151,550 150,959 — Commercial mortgage loans individually <3% First Mortgage 37 Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Other, Mixed Use 0.0% - 9.8% 2019 - 2024 Principal and Interest / Interest Only 2,427,032 2,392,758 — Total Commercial mortgage loans $3,928,234 $3,878,981 — Subordinate loans individually >3%(3) Loan I Residential-for-sale: construction 16.80% Jul 2020 Interest Only 181,572 182,895 — Subordinate loans individually <3%(3) Subordinate Mortgage 23 Residential-for-sale: construction, Hotel, Multifamily, Other, Mixed Use, Residential-for-sale: inventory, Industrial, Office 0.0% - 20.0% 2019 - 2028 Principal and Interest / Interest Only 872,708 865,717 — Total Subordinate loans $1,054,280 $1,048,612 — Total loans (4) $4,982,514 $4,927,593 — ——————— (1) Assumes applicable benchmark rate for all floating rate loans (2) Assumes all extension options are exercised. (3) Subject to prior liens. (4) The aggregate cost for federal income tax purposes is $5.0 billion. The following table summarizes the changes in the carrying amounts of our loan investment portfolio during 2018 and 2017 ($ in thousands): Year Ended Year Ended Reconciliation of Carrying Amount of Loans December 31, 2018 December 31, 2017 Balance at beginning of year $ 3,679,758 $ 2,693,092 Loan fundings (1) 2,350,865 1,828,758 Loan repayments (1,066,843 ) (891,848 ) Unrealized gain (loss) on foreign currency translation (51,013 ) 23,612 Discount accretion — — Provision for loan losses (2) and impairments (20,000 ) (1,981 ) Deferred Fees (34,066 ) (27,424 ) PIK interest, amortization of fees and other items 68,892 55,549 Balance at the close of year $ 4,927,593 $ 3,679,758 ——————— (1) During the year ended December 31, 2018, $34.6 million was purchased from a fund managed by an affiliate of the Manager. (2) During the year ended December 31, 2018, we recorded a loan loss provision of $20.0 million, made up of $5.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD, and $15.0 million on a commercial mortgage loan, secured by a retail center in Cincinnati, Ohio. During the year ended December 31, 2017, we recorded a loan loss provision of $2.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. In addition to the $2.0 million provision for loan loss, we recorded an impairment of $3.0 million on a related investment previously recorded under other assets on our consolidated balance sheet. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries. All intercompany amounts have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("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 and the reported amounts of revenues and expenses during the reporting periods. Our most significant estimates include loan loss reserves and impairment. Actual results could differ from those estimates. |
Classification of Investments and Valuations of Financial Instruments | Classification of Investments and Valuations of Financial Instruments Our investments consist primarily of commercial mortgage loans and subordinate loans that are classified as held-to-maturity. |
Classification of Loans and Loan Impairment | Loan Impairment Our loans are typically collateralized by commercial real estate. As a result, we regularly evaluate the extent and impact of any credit migration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations are 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 property’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 properties. In addition, we consider the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management and finance personnel, who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. We evaluate the loans for possible impairment on a quarterly basis. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Impairment, for collateral dependent loans, is then measured as the difference between the carrying value of the loan and the fair value of the collateral. Upon measurement of impairment, we record an allowance to reduce the carrying value of the loan with a corresponding charge to net income. Significant judgments are required in determining impairment, including assumptions regarding the value of the loan, the value of the underlying collateral and other provisions such as guarantees. Classification of Loans Loans held-for-investment are stated at the principal amount outstanding, adjusted for deferred fees and impairment, if any, in accordance with GAAP. |
Fair Value Election | Fair Value Election Securities at estimated fair value consist of CMBS. In accordance with GAAP, we elected the fair value option for these securities at the date of purchase in order to allow us to measure these securities at fair value with the change in estimated fair value included as a component of earnings in order to reflect the performance of the investments in a timely manner. |
Securities, held-to-maturity | Securities, held-to-maturity GAAP requires that at the time of purchase, we designate investment securities as held-to-maturity or trading, depending on our investment strategy and ability to hold such securities to maturity. Held-to-maturity securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. |
Investments in unconsolidated joint venture | Investments in unconsolidated joint venture Investments are accounted for under the equity method when the requirements for consolidation are not met, and we have significant influence over the operations of the investee. Equity method investments are initially recorded at cost and subsequently adjusted for our share of net income or loss and cash contributions and distributions each period. Investments in unconsolidated joint ventures are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods and available information at the time the analyses are prepared. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. |
Interest Income Recognition | Interest Income Recognition Interest income on commercial mortgage loans, subordinate loans, and CMBS is accrued based on the actual coupon rate adjusted for accretion of any purchase discounts, the amortization of any purchase premiums and the accretion of any deferred fees, in accordance with GAAP. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with financings are capitalized and amortized over the respective financing terms and are reflected on the accompanying consolidated statement of operations as a component of interest expense. |
Earnings per Share | Earnings per Share GAAP requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock. |
Foreign Currency | Foreign Currency We enter into transactions not denominated in U.S. dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statement of operations. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the prevailing exchange rate on the dates that they were recorded. |
Hedging Instruments and Hedging Activities | Hedging Instruments and Hedging Activities Consistent with maintaining our qualification as a REIT, in the normal course of business, we use a variety of derivative financial instruments to manage, or hedge, interest rate and foreign currency risk. Derivatives are used for hedging purposes rather than speculation. There is a gain or loss associated with forward points on our foreign currency hedges, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. We determine their fair value using quotations from a third party expert to facilitate the process, which are determined by comparing the contracted forward exchange rate to the current market exchange rate, as well as by using a discounted cash flow analysis on the expected cash flows of each derivative. If our hedging activities do not achieve the desired results, reported earnings may be adversely affected. GAAP requires an entity to recognize all derivatives as either assets or liabilities in the balance sheets and to measure those instruments at fair value. To the extent the instrument qualifies for hedge accounting, the fair value adjustments will be recorded as a component of other comprehensive income in stockholders’ equity until the hedged item is recognized in earnings. Whenever we decide not to pursue hedge accounting, the fair value adjustments will be recorded in earnings immediately based on changes in the fair market value of those instruments. We have not designated any of our derivative instruments as hedges under GAAP and therefore, changes in the fair value of our derivatives are recorded directly in earnings. |
Secured Debt Arrangements | Secured Debt Arrangements Secured debt arrangements are treated as collateralized financing transactions, unless they meet sales treatment. Securities financed through a secured debt arrangement remain on our balance sheet as an asset and cash received from the purchaser is recorded on our consolidated balance sheet as a liability. Interest paid in accordance with secured debt arrangements is recorded in interest expense. |
Share-based Payments | Share-based Payments We account for share-based compensation to our independent directors, Manager and to employees of the Manager and its affiliates using the fair value based methodology prescribed by GAAP. Compensation cost related to restricted common stock issued to our independent directors is measured at its estimated fair value at the grant date, and amortized into expense over the vesting period on a straight-line basis. Compensation cost related to restricted common stock issued to the Manager and to employees of the Manager and its affiliates will initially be measured at estimated fair value at the grant date, and remeasured on subsequent dates to the extent the awards are unvested. To amortize compensation expense for the restricted common stock granted to the Manager and to employees of the Manager and its affiliates, we use the graded vesting attribution method. |
Income Taxes | Income Taxes We have elected to be taxed as a REIT under Sections 856-859 of the Internal Revenue Code of 1986, as amended. Under those sections, a REIT which distributes at least 90% of its REIT taxable income, excluding net capital gains and determined without regard to the dividends paid deduction, as a dividend to its stockholders each year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its stockholders. We have elected to treat certain consolidated subsidiaries, and may in the future elect to treat newly formed subsidiaries, as taxable REIT subsidiaries. Taxable REIT subsidiaries may participate in non-real estate related activities and/or perform non-customary services for tenants and are subject to U.S. federal and state income tax at regular corporate tax rates. Our major tax jurisdictions are U.S. federal, New York State and New York City and the statute of limitations is open for all jurisdictions for the years 2015 through 2018. We do not have any unrecognized tax benefits and do not expect a change in our position for unrecognized tax benefits in the next 12 months. |
Principles of Consolidation | Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance, and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. |
Securitization/Sale and Financing Arrangements | Securitization/Sale and Financing Arrangements We periodically sell our financial assets, such as commercial mortgage loans, CMBS and other assets. In connection with these transactions, we may retain or acquire senior or subordinated interests in the related assets. Gains and losses on such transactions are recognized using the guidance in Accounting Standards Codification ("ASC") Topic 860, "Transfers and Servicing", which is based on a financial components approach that focuses on control. Under this approach, after a transfer of financial assets that meets the criteria for treatment as a sale-legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transferred control an entity recognizes the financial assets it retains and any liabilities it has incurred, derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished. We determine the gain or loss on sale of the assets by allocating the carrying value of the sold asset between the sold asset and the interests retained based on their relative fair values, as applicable. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the sold asset. If the sold asset is being accounted for pursuant to the fair value option, there is no gain or loss. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-13 "Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 changes the fair value measurement disclosure requirements of ASC 820 "Fair Value Measurement" by adding, eliminating, and modifying certain disclosure requirements. ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019 and requires application of the prospective method of transition. We are currently assessing the impact the guidance will have on our consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting" ("ASU 2018-07"). The intention of ASU 2018-07 is to expand the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees. These share-based payments will now be measured at grant-date fair value of the equity instrument issued. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be remeasured through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-07 is effective for fiscal years beginning after December 15, 2019 and is applied retrospectively. We are currently assessing the impact the guidance will have on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The intention of ASU 2017-12 is to align an entity’s financial reporting for hedging activities with the economic objectives of those activities. Upon adoption of ASU 2017-12, the cumulative ineffectiveness previously recognized on existing cash flow and net investment hedges will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income (loss). We note that this guidance will not have a material impact on our consolidated financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. In November 2016, the FASB issued ASU 2016-18 "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. We early adopted ASU 2016-18 on June 30, 2017, which changed our consolidated statement of cash flows and related disclosures for all periods presented. The following is a reconciliation of our cash and cash equivalents, and restricted cash to the total presented in our consolidated statement of cash flows for the years ended December 31, 2018 and 2017, respectively ($ in thousands): Balance at December 31, 2018 Balance at December 31, 2017 Cash and cash equivalents $ 109,806 $ 140,229 Restricted cash — 76 Total cash and cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 109,806 $ 140,305 In June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While we are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements, we expect that the adoption will result in a higher provision for loan losses. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents, and restricted cash to the total presented in our consolidated statement of cash flows for the years ended December 31, 2018 and 2017, respectively ($ in thousands): Balance at December 31, 2018 Balance at December 31, 2017 Cash and cash equivalents $ 109,806 $ 140,229 Restricted cash — 76 Total cash and cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 109,806 $ 140,305 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following is a reconciliation of our cash and cash equivalents, and restricted cash to the total presented in our consolidated statement of cash flows for the years ended December 31, 2018 and 2017, respectively ($ in thousands): Balance at December 31, 2018 Balance at December 31, 2017 Cash and cash equivalents $ 109,806 $ 140,229 Restricted cash — 76 Total cash and cash equivalents and restricted cash shown in the consolidated statement of cash flows $ 109,806 $ 140,305 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Levels in Fair Value Hierarchy of Financial Instruments | The following table summarizes the levels in the fair value hierarchy into which our financial instruments were categorized as of December 31, 2018 and 2017 ($ in thousands): Fair Value as of December 31, 2018 Fair Value as of December 31, 2017 Level I Level II Level III Total Level I Level II Level III Total Derivative assets (liabilities), net $ — $ 23,700 $ — $ 23,700 $ — $ (5,644 ) $ — $ (5,644 ) |
Commercial Mortgage and Subor_2
Commercial Mortgage and Subordinate Loans, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at December 31, 2018 and 2017 ($ in thousands): Loan Type December 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,878,981 $ 2,653,826 Subordinate loans, net 1,048,612 1,025,932 Total loans, net $ 4,927,593 $ 3,679,758 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the year ended December 31, 2018 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 2,069,909 — — 2,069,909 Add-on loan fundings (3) 280,956 — — 280,956 Loan repayments (1,066,843 ) — — (1,066,843 ) Unrealized gain (loss) on foreign currency translation (51,202 ) 189 — (51,013 ) Provision for loan loss (2) — — (20,000 ) (20,000 ) Deferred fees and other items (1) — (34,066 ) — (34,066 ) PIK interest, amortization of fees and other items (1) 43,525 25,367 — 68,892 December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $37.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our consolidated balance sheet. (3) Represents fundings for loans closed prior to 2018. |
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Number of loans 69 59 Principal balance $ 4,982,514 $ 3,706,169 Carrying value $ 4,927,593 $ 3,679,758 Unfunded loan commitments (1) $ 1,095,598 $ 435,627 Weighted-average cash coupon (2) 8.4 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. |
Schedule of Mortgage Loans on Real Estate | The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Hotel $ 1,286,590 26.1 % $ 645,056 17.6 % Residential-for-sale: inventory (1) 577,053 11.7 % 92,438 2.5 % Residential-for-sale: construction (1) 528,510 10.7 % 349,739 9.5 % Office 832,620 16.9 % 513,830 14.0 % Urban Predevelopment 683,886 13.9 % 654,736 17.8 % Multifamily 448,899 9.1 % 465,057 12.6 % Healthcare 156,814 3.2 % 173,870 4.7 % Retail Center 156,067 3.2 % 198,913 5.4 % Other 151,197 3.1 % 154,141 4.2 % Mixed Use 73,957 1.5 % 354,640 9.6 % Industrial 32,000 0.6 % 77,338 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % (1) To conform to the current period’s presentation, loans with a combined carrying value of $442.2 million classified as residential-for-sale as of December 31, 2017 were broken out into $349.8 million of residential-for-sale: construction and $92.4 million of residential-for-sale: inventory. The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,669,145 33.9 % $ 1,173,833 31.9 % Brooklyn, NY 346,056 7.0 % 357,611 9.7 % Northeast 23,479 0.5 % 100,536 2.7 % Midwest 631,710 12.8 % 683,380 18.6 % West 614,160 12.5 % 227,024 6.2 % Southeast 559,043 11.3 % 531,582 14.4 % Mid Atlantic 211,775 4.3 % 191,976 5.2 % Southwest 96,345 2.0 % 33,615 0.9 % United Kingdom 700,460 14.2 % 303,488 8.3 % Other International 75,420 1.5 % 76,713 2.1 % Total $ 4,927,593 100.0 % $ 3,679,758 100.0 % |
Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 3 138,040 3 % 5 399,326 10 % 3 63 4,573,930 93 % 51 3,034,358 83 % 4 — — — % 1 168,208 5 % 5 3 215,623 4 % 2 77,866 2 % 69 $ 4,927,593 100 % 59 $ 3,679,758 100 % |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Components of Other Assets | The following table details the components of our other assets at the dates indicated ($ in thousands): December 31, 2018 December 31, 2017 Interest receivable $ 33,399 $ 23,101 Collateral deposited under derivative agreements — 4,930 Other 321 389 Total $ 33,720 $ 28,420 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Weighted Average Maturities and Interest Rates of Borrowings | At December 31, 2018 and 2017, our borrowings had the following secured debt arrangements, maturities and weighted- average interest rates ($ in thousands): December 31, 2018 (2) December 31, 2017 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted- JPMorgan Facility (USD) $ 1,333,503 $ 680,141 June 2021 $ 1,393,000 $ 944,529 March 2020 USD L + 2.30% JPMorgan Facility (GBP) 48,497 48,497 June 2021 N/A N/A N/A N/A DB Repurchase Facility (USD) 904,181 419,823 March 2021 472,090 225,367 March 2020 USD L + 2.56% DB Repurchase Facility (GBP) 150,819 150,819 March 2021 93,919 93,919 March 2020 GBP L + 2.60% Goldman Facility 300,000 210,072 November 2020 331,130 81,380 November 2020 USD L + 2.73% CS Facility (USD) 187,117 187,117 June 2019 N/A N/A N/A N/A CS Facility (GBP) 151,773 151,773 June 2019 N/A N/A N/A N/A HSBC Facility (GBP) 48,835 48,835 December 2019 N/A N/A N/A N/A Sub-total 3,124,725 1,897,077 2,290,139 1,345,195 less: deferred financing costs N/A (17,555 ) N/A (14,348 ) N/A Total / Weighted-Average $ 3,124,725 $ 1,879,522 $2,290,139 $1,330,847 USD L + 2.37% / GBP L + 2.60% ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rate as of December 31, 2018 was USD L + 2.17% / GBP L + 2.28% . |
Remaining Maturities of Borrowings | At December 31, 2018 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 153,759 $ 574,879 $ — $ — $ 728,638 DB Repurchase Facility 174,293 396,349 — — 570,642 Goldman Facility — 210,072 — — 210,072 CS Facility - USD 187,117 — — — 187,117 CS Facility - GBP 151,773 — — — 151,773 HSBC Facility 48,835 — — — 48,835 Total $ 715,777 $ 1,181,300 $ — $ — $ 1,897,077 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. |
Schedule of Outstanding, Maximum and Average Balances of Debt | The table below summarizes the outstanding balances at December 31, 2018 , as well as the maximum and average month-end balances for the year ended December 31, 2018 for our borrowings under secured debt arrangements ($ in thousands). For the year ended December 31, 2018 Balance at December 31, 2018 Amortized Cost of collateral at December 31, 2018 Maximum Month-End Average Month-End JPMorgan Facility $ 728,638 $ 1,374,235 $ 1,000,854 $ 885,203 DB Repurchase Facility 570,642 921,424 707,405 524,727 Goldman Facility 210,072 362,577 261,691 176,145 CS Facility - USD 187,117 254,064 189,839 109,453 CS Facility - GBP 151,773 216,167 151,915 147,651 HSBC Facility 48,835 69,433 49,896 49,107 Total $ 1,897,077 $ 3,197,900 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2019 Notes $ 34,482 5.50 % 8.31 % 58.2442 3/15/2019 0.21 years 2022 Notes 345,000 4.75 % 5.60 % 50.2260 8/23/2022 3.65 years 2023 Notes 230,000 5.375 % 6.16 % 48.7187 10/15/2023 4.79 years Total $ 609,482 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See endnote (2) below), the value of which reduced the initial liability and was recorded in additional paid-in-capital. (2) We have the option to settle any conversions in cash, shares of common stock or a combination thereof. The conversion rate represents the number of shares of common stock issuable per one thousand principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by us to stockholders that have been deferred and carried-forward in accordance with, and are not yet required to be made pursuant to, the terms of the applicable supplemental indenture. |
Derivatives, Net (Tables)
Derivatives, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Non-Designated Foreign Exchange Forwards | The following table summarizes our non-designated foreign exchange ("Fx") forwards as of December 31, 2018 : Type of Derivative December 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 The following table summarizes our non-designated Fx forwards as of December 31, 2017 : Type of Derivative December 31, 2017 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 24 177,077 GBP January 2018- November 2020 |
Summary of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives | The following table summarizes the amounts recognized on the consolidated statements of operations related to our derivatives for the years ended December 31, 2018 , 2017 and 2016 ($ in thousands): Amount of gain (loss) recognized in income Location of Gain (Loss) Recognized in Income 2018 2017 2016 Forward currency contracts Gain (loss) on derivative instruments - unrealized $ 29,345 $ (11,527 ) $ 2,665 Forward currency contracts Gain (loss) on derivative instruments - realized 9,713 (7,657 ) 28,552 Interest rate caps (1) Gain (loss) on derivative instruments - unrealized — 4 (57 ) Sub-total $ 39,058 $ (19,180 ) $ 31,160 Forward currency contracts Loss from unconsolidated joint venture — (587 ) — Total $ 39,058 $ (19,767 ) $ 31,160 ——————— (1) With a notional amount of $34.9 million, $40.2 million and $45.5 million at December 31, 2018 , 2017 and 2016 , respectively. |
Summarizes Gross Asset and Liability Amounts Related to Derivatives | The following table summarizes the gross asset and liability amounts related to our derivatives at December 31, 2018 and 2017 ($ in thousands). December 31, 2018 December 31, 2017 Gross Gross Net Amounts Gross Gross Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheet Interest rate caps $ — $ — $ — $ — $ 1 $ 1 Forward currency contracts 23,753 (53 ) 23,700 (5,645 ) — (5,645 ) Total derivative instruments $ 23,753 $ (53 ) $ 23,700 $ (5,645 ) $ 1 $ (5,644 ) |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued Expense and Other Liabilities | The following table details the components of our accounts payable, accrued expense and other liabilities ($ in thousands): December 31, 2018 December 31, 2017 Accrued dividends payable $ 69,033 $ 56,576 Collateral deposited under derivative agreements 20,000 — Accrued interest payable 14,208 12,796 Accounts payable and other liabilities 1,505 1,534 Total $ 104,746 $ 70,906 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs | The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during 2018, 2017 and 2016: Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) Outstanding at December 31, 2015 107,385 1,242,810 Grant 92,056 903,068 16,477 Vested (49,331 ) (397,030 ) N/A Forfeiture — (45,073 ) N/A Outstanding at December 31, 2016 150,110 1,703,775 Grant 27,700 912,916 17,496 Vested (72,249 ) (938,541 ) N/A Forfeiture — (45,404 ) N/A Outstanding at December 31, 2017 105,561 1,632,746 Grant 28,070 1,006,800 19,148 Vested (67,934 ) (739,388 ) N/A Forfeiture — (47,201 ) N/A Outstanding at December 31, 2018 65,697 1,852,957 Below is a summary of restricted stock and RSU vesting dates as of December 31, 2018 : Vesting Year Restricted Stock RSU Total Awards 2019 60,803 889,734 950,537 2020 4,894 628,310 633,204 2021 — 334,913 334,913 Total 65,697 1,852,957 1,918,654 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Declared | During 2018 , 2017 and 2016, we declared the following dividends: Dividend declared per share of: 2018 2017 2016 Common Stock (1) $1.84 $1.84 $1.84 Series A Preferred Stock (2) N/A 1.19 2.16 Series B Preferred Stock 2.00 2.00 2.00 Series C Preferred Stock 2.00 2.00 1.00 ——————— (1) As our aggregate 2018 distributions exceeded our earnings and profits, $0.46 of the January 2019 distribution declared in the fourth quarter of 2018 are payable to common stockholders of record as of December 31, 2018 will be treated as a 2019 distribution for U.S. federal income tax purposes. (2) The Series A Preferred Stock shares were redeemed in full in August 2017. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Financial Instruments | The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the consolidated balance sheet at December 31, 2018 and 2017 ($ in thousands): December 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 109,806 $ 109,806 $ 77,671 $ 77,671 Commercial first mortgage loans, net 3,878,981 3,894,947 2,653,826 2,657,262 Subordinate loans, net 1,048,612 1,047,854 1,025,932 1,029,390 Secured debt arrangements (1,897,077 ) (1,897,077 ) (1,345,195 ) (1,345,195 ) 2019 Notes (34,278 ) (35,276 ) (251,935 ) (276,506 ) 2022 Notes (335,291 ) (326,025 ) (332,962 ) (350,175 ) 2023 Notes (222,431 ) (221,964 ) — — |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method | The table below presents the computation of basic and diluted net income per share of common stock for the years ended December 31, 2018, 2017 and 2016 ($ in thousands except per share data): For the year ended 2018 2017 2016 Basic Earnings Net income $ 219,986 $ 193,031 $ 157,876 Less: Preferred dividends (27,340 ) (36,761 ) (30,295 ) Net income available to common stockholders $ 192,646 $ 156,270 $ 127,581 Less: Dividends on participating securities (3,405 ) (2,913 ) (2,087 ) Basic Earnings $ 189,241 $ 153,357 $ 125,494 Diluted Earnings Net income $ 219,986 $ 193,031 $ 157,876 Less: Preferred dividends (27,340 ) (36,761 ) (30,295 ) Net income available to common stockholders $ 192,646 $ 156,270 $ 127,581 Add: Interest expense on Notes 34,779 N/A N/A Diluted Earnings $ 227,425 $ 156,270 $ 127,581 Number of Shares: Basic weighted-average shares of common stock outstanding 124,147,073 99,859,153 72,371,374 Diluted weighted-average shares of common stock outstanding 153,821,515 101,232,610 73,305,101 Earnings Per Share Attributable to common stockholders Basic $ 1.52 $ 1.54 $ 1.74 Diluted $ 1.48 $ 1.54 $ 1.74 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The following table provides the pro forma consolidated operational data as if the AMTG Merger had occurred on January 1, 2016: Year ended (in thousands, except per share data) December 31, 2016 Total revenue $ 349,948 Net income attributable to common stockholders 89,877 Common shares outstanding at December 31, 2016 91,422,676 Net income per common share, basic and diluted $ 0.98 The bargain purchase gain was computed as follows: Consideration Paid: $ (in thousands) Cash $ 220,159 Common stock issued 218,397 Preferred stock assumed 172,500 Total consideration paid $ 611,056 Assets acquired: Cash and cash equivalents 399,402 Restricted cash 10,552 Investments 1,491,484 Other assets 34,822 Liabilities assumed: Borrowings under repurchase agreements (1,254,518 ) Other liabilities (30,665 ) Net assets acquired 651,077 Bargain purchase gain $ 40,021 |
Summarized Quarterly Results _2
Summarized Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Summarized Quarterly Results | March 31, June 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 2018 2017 Net interest income: Interest income from commercial mortgage loans $ 52,114 $ 34,398 $ 65,141 $ 37,089 $ 71,179 $ 41,203 $ 75,275 $ 45,942 Interest income from subordinate loans 33,853 34,390 34,075 39,640 37,308 47,268 34,944 43,993 Interest income from securities — 6,054 — 4,700 — 2,625 — 1,219 Interest expense (22,740 ) (17,030 ) (28,437 ) (19,205 ) (31,007 ) (19,855 ) (32,413 ) (21,967 ) Net interest income 63,227 57,812 70,779 62,224 77,480 71,241 77,806 69,187 Operating expenses: General and administrative expenses (4,998 ) (5,758 ) (5,652 ) (5,200 ) (5,843 ) (4,629 ) (3,977 ) (5,138 ) Management fees to related party (8,092 ) (7,432 ) (9,013 ) (7,742 ) (9,515 ) (8,309 ) (9,804 ) (8,169 ) Total operating expenses (13,090 ) (13,190 ) (14,665 ) (12,942 ) (15,358 ) (12,938 ) (13,781 ) (13,307 ) Income (loss) from unconsolidated joint venture — 458 — (3,305 ) — — — — Other income 203 108 343 244 427 359 465 229 Provision for loan losses and impairments — — (5,000 ) (5,000 ) — — (15,000 ) — Realized loss on sale of assets — (1,042 ) — — — (4,076 ) — (37,575 ) Unrealized gain (loss) on securities — 2,852 — (4,510 ) — 13,488 — 25,335 Foreign currency gain (loss) 10,125 3,172 (29,649 ) 6,913 (4,050 ) 7,763 (6,761 ) 658 Loss on early extinguishment of debt — — — — (2,573 ) — — (1,947 ) Gain (loss) on derivative instruments (11,032 ) (3,045 ) 33,538 (7,389 ) 6,291 (7,481 ) 10,261 (1,265 ) Net income $ 49,433 $ 47,125 $ 55,346 $ 36,235 $ 62,217 $ 68,356 $ 52,990 $ 41,315 Preferred dividends (6,835 ) (9,310 ) (6,834 ) (9,310 ) (6,836 ) (11,148 ) (6,835 ) (6,993 ) Net income available to common stockholders $ 42,598 $ 37,815 $ 48,512 $ 26,925 $ 55,381 $ 57,208 $ 46,155 $ 34,322 Net income per share of common stock: Basic $ 0.38 $ 0.41 $ 0.39 $ 0.28 $ 0.42 $ 0.54 $ 0.34 $ 0.32 Diluted $ 0.38 $ 0.41 $ 0.39 $ 0.28 $ 0.40 $ 0.54 $ 0.34 $ 0.32 Basic weighted-average shares of common stock outstanding 110,211,853 91,612,447 123,019,993 95,428,134 129,188,343 105,446,704 133,852,915 106,721,887 Diluted weighted-average shares of common stock outstanding 111,871,429 92,998,250 124,629,317 96,796,289 153,918,435 106,812,721 163,900,633 108,095,950 Dividend declared per share of common stock $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 $ 0.46 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Number of business segments | Segment | 1 | ||
Proceeds reclassified into origination and exit fees received | $ 41,822 | $ 27,904 | $ 12,500 |
Capitalized financing costs | $ 17,555 | $ 14,348 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 109,806 | $ 77,671 | $ 140,229 | ||
Restricted cash | 0 | 76 | |||
Total cash and cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 109,806 | $ 77,671 | $ 140,305 | $ 263,453 | $ 97,542 |
Fair Value Disclosure - Summari
Fair Value Disclosure - Summarizes Levels in Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | $ 23,700 | $ 0 |
Estimate of Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | 23,700 | (5,644) |
Level 1 [Member] | Estimate of Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | 0 | 0 |
Level 2 [Member] | Estimate of Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | 23,700 | (5,644) |
Level 3 [Member] | Estimate of Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | $ 0 | $ 0 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Realized (loss) gain on sale of securities | $ (5,500) | $ 1,500 | |||||||||
Interest income from securities | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,219 | $ 2,625 | $ 4,700 | $ 6,054 | $ 0 | 14,598 | 39,055 |
Payments and proceeds received on securities | 0 | 468,171 | 140,228 | ||||||||
Commercial Mortgage Backed Securities [Member] | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Interest income from securities | 14,600 | 39,100 | |||||||||
CMBS (Held-to-maturity Securities) [Member] | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Interest income from securities | 4,100 | 11,500 | |||||||||
(CBMS) Fair Value Option [Member] | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Interest income from securities | $ 10,500 | 27,600 | |||||||||
Restatement Adjustment [Member] | |||||||||||
Debt Securities, Available-for-sale [Line Items] | |||||||||||
Proceeds from payments received on held-to-maturity securities reclassified | (146,500) | (6,700) | |||||||||
Payments and proceeds received on securities | 295,700 | 97,900 | |||||||||
Payments received on securities reclassified | $ 26,000 | $ 35,600 |
Commercial Mortgage and Subor_3
Commercial Mortgage and Subordinate Loans, Net - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 4,927,593 | $ 3,679,758 |
Commercial Mortgage Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | 3,878,981 | 2,653,826 |
Subordinate Mortgage Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 1,048,612 | $ 1,025,932 |
Commercial Mortgage and Subor_4
Commercial Mortgage and Subordinate Loans, Net - Activity Relating to Loan Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Principal Balance | |||||||||||
Loan repayments | $ (675,140) | $ (218,002) | $ (205,226) | ||||||||
Provision for Loan Loss | |||||||||||
Provision for loan losses | $ (15,000) | $ 0 | $ (5,000) | $ 0 | $ 0 | $ 0 | $ (5,000) | $ 0 | (20,000) | (5,000) | $ (15,000) |
Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
Principal Balance | |||||||||||
Principal balance, beginning | 3,706,169 | 3,706,169 | |||||||||
New loan fundings | 2,069,909 | ||||||||||
Add-on loan fundings | 280,956 | ||||||||||
Loan repayments | (1,066,843) | ||||||||||
Unrealized gain (loss) on foreign currency translation | (51,202) | ||||||||||
PIK interest, amortization of fees and other items | 43,525 | ||||||||||
Principal balance, ending | 4,982,514 | 3,706,169 | 4,982,514 | 3,706,169 | |||||||
Deferred Fees/Other Items | |||||||||||
Deferred fees/other items, beginning | (9,430) | (9,430) | |||||||||
Unrealized gain (loss) on foreign currency translation | 189 | ||||||||||
Deferred fees and other items | (34,066) | ||||||||||
PIK interest, amortization of fees and other items | 25,367 | ||||||||||
Deferred fees/other items, ending | (17,940) | (9,430) | (17,940) | (9,430) | |||||||
Provision for Loan Loss | |||||||||||
Provision for loans, beginning | (16,981) | (16,981) | |||||||||
Provision for loan losses | (20,000) | ||||||||||
Provision for loans, ending | (36,981) | (16,981) | (36,981) | (16,981) | |||||||
Carrying Value | |||||||||||
Carrying value, beginning balance | $ 3,679,758 | 3,679,758 | |||||||||
Unrealized gain (loss) on foreign currency translation | (51,013) | ||||||||||
Deferred fees and other items | (34,066) | ||||||||||
PIK interest, amortization of fees and other items | 68,892 | ||||||||||
Carrying value, ending balance | $ 4,927,593 | $ 3,679,758 | 4,927,593 | $ 3,679,758 | |||||||
Other Assets [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
Carrying Value | |||||||||||
Impairment | $ 3,000 | $ 3,000 |
Commercial Mortgage and Subor_5
Commercial Mortgage and Subordinate Loans, Net - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)$ / ft² | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)loan | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)$ / ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Percentage of loan portfolio | 100.00% | 100.00% | |||||||||
Provision for loan losses and impairment | $ 15,000 | $ 0 | $ 5,000 | $ 0 | $ 0 | $ 0 | $ 5,000 | $ 0 | $ 20,000 | $ 5,000 | $ 15,000 |
Carrying value | 4,927,593 | 3,679,758 | 4,927,593 | 3,679,758 | |||||||
Payment in kind interest | 43,500 | 25,200 | 24,400 | ||||||||
Proceeds from pre-payment penalties or accelerated fees | 2,300 | 5,400 | 5,200 | ||||||||
Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan loss provision and impairment | 37,000 | 17,000 | |||||||||
Provision for loan losses and impairment | 20,000 | ||||||||||
Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | 37,000 | ||||||||||
Carrying value | 3,878,981 | 2,653,826 | 3,878,981 | 2,653,826 | |||||||
Subordinate Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | 17,000 | ||||||||||
Carrying value | 1,048,612 | $ 1,025,932 | 1,048,612 | 1,025,932 | |||||||
Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | 15,000 | 15,000 | |||||||||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan loss provision and impairment | 10,000 | ||||||||||
Provision for loan losses and impairment | $ 5,000 | 2,000 | 2,000 | ||||||||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | 5,000 | ||||||||||
Multifamily - Williston, ND [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | 10,000 | ||||||||||
Multifamily - Williston, ND [Member] | Subordinate Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Provision for loan losses and impairment | $ 5,000 | ||||||||||
Office Campus - Renton, WA [Member] | Subordinate Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Proceeds from sale of loan | 75,000 | ||||||||||
Proceeds from sale of loan, amount funded | 17,700 | ||||||||||
Carrying value | 265,000 | 265,000 | |||||||||
Exposure to mortgage loan | 190,000 | 190,000 | |||||||||
Exposure to mortgage loan, amount funded | 82,000 | 82,000 | |||||||||
Other Assets [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Impairment | $ 3,000 | $ 3,000 | |||||||||
Other Assets [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Impairment | $ 3,000 | ||||||||||
Floating Rate Loan [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Percentage of loan portfolio | 91.00% | 88.00% | |||||||||
Net operating income [Member] | Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan Collateral | $ 10,500 | $ 10,500 | |||||||||
Capitalization rate [Member] | Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan collateral, measurement input | 0.0675 | ||||||||||
Discount rate [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan collateral, measurement input | 0.10 | ||||||||||
Discount rate [Member] | Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan collateral, measurement input | 0.15 | 0.15 | |||||||||
Terminal capitalization rate [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan collateral, measurement input | 0.11 | ||||||||||
Dollars per square foot [Member] | Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Loan collateral, measurement input | $ / ft² | 662 | 662 | |||||||||
Contractual Interest Rate Reduction [Member] | Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Number of loans restructured | loan | 1 | ||||||||||
Unpaid principal balance of loan restructured | $ 169,000 | ||||||||||
Contractual Interest Rate Reduction [Member] | London Interbank Offered Rate (LIBOR) [Member] | Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Basis spread on variable rate | 3.00% | 5.50% |
Commercial Mortgage and Subor_6
Commercial Mortgage and Subordinate Loans, Net - Statistics for Loan Portfolio (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 69 | 59 |
Principal balance | $ 4,982,514 | $ 3,706,169 |
Carrying value | 4,927,593 | 3,679,758 |
Unfunded loan commitments | $ 1,095,598 | $ 435,627 |
Weighted-average cash coupon | 8.40% | 8.40% |
Commercial Mortgage and Subor_7
Commercial Mortgage and Subordinate Loans, Net - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 4,927,593 | $ 3,679,758 |
% of Portfolio | 100.00% | 100.00% |
Hotel [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,286,590 | $ 645,056 |
% of Portfolio | 26.10% | 17.60% |
Residential-for Sale [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 442,200 | |
Residential-for-sale: inventory [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 577,053 | $ 92,438 |
% of Portfolio | 11.70% | 2.50% |
Residential-for-sale: construction [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 528,510 | $ 349,739 |
% of Portfolio | 10.70% | 9.50% |
Office [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 832,620 | $ 513,830 |
% of Portfolio | 16.90% | 14.00% |
Urban Predevelopment [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 683,886 | $ 654,736 |
% of Portfolio | 13.90% | 17.80% |
Multifamily [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 448,899 | $ 465,057 |
% of Portfolio | 9.10% | 12.60% |
Healthcare [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 156,814 | $ 173,870 |
% of Portfolio | 3.20% | 4.70% |
Retail Center [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 156,067 | $ 198,913 |
% of Portfolio | 3.20% | 5.40% |
Other [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 151,197 | $ 154,141 |
% of Portfolio | 3.10% | 4.20% |
Mixed Use [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 73,957 | $ 354,640 |
% of Portfolio | 1.50% | 9.60% |
Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 32,000 | $ 77,338 |
% of Portfolio | 0.60% | 2.10% |
Manhattan, NY [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,669,145 | $ 1,173,833 |
% of Portfolio | 33.90% | 31.90% |
Brooklyn, NY [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 346,056 | $ 357,611 |
% of Portfolio | 7.00% | 9.70% |
Northeast [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 23,479 | $ 100,536 |
% of Portfolio | 0.50% | 2.70% |
Midwest [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 631,710 | $ 683,380 |
% of Portfolio | 12.80% | 18.60% |
West [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 614,160 | $ 227,024 |
% of Portfolio | 12.50% | 6.20% |
Southeast [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 559,043 | $ 531,582 |
% of Portfolio | 11.30% | 14.40% |
Mid Atlantic [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 211,775 | $ 191,976 |
% of Portfolio | 4.30% | 5.20% |
Southwest [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 96,345 | $ 33,615 |
% of Portfolio | 2.00% | 0.90% |
UNITED KINGDOM | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 700,460 | $ 303,488 |
% of Portfolio | 14.20% | 8.30% |
Other International [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 75,420 | $ 76,713 |
% of Portfolio | 1.50% | 2.10% |
Commercial Mortgage and Subor_8
Commercial Mortgage and Subordinate Loans, Net - Allocation of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 69 | 59 |
Carrying value | $ | $ 4,927,593 | $ 3,679,758 |
% of Portfolio | 100.00% | 100.00% |
1 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Carrying value | $ | $ 0 | $ 0 |
% of Portfolio | 0.00% | 0.00% |
2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 3 | 5 |
Carrying value | $ | $ 138,040 | $ 399,326 |
% of Portfolio | 3.00% | 10.00% |
3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 63 | 51 |
Carrying value | $ | $ 4,573,930 | $ 3,034,358 |
% of Portfolio | 93.00% | 83.00% |
4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Carrying value | $ | $ 0 | $ 168,208 |
% of Portfolio | 0.00% | 5.00% |
5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of Loans | loan | 3 | 2 |
Carrying value | $ | $ 215,623 | $ 77,866 |
% of Portfolio | 4.00% | 2.00% |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Details) - Champ LP [Member] € in Millions, $ in Millions | 1 Months Ended | ||||
May 31, 2018USD ($) | May 31, 2018EUR (€) | May 31, 2017USD ($) | Dec. 31, 2018 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale of ownership interest in equity method investment | $ 24.5 | € 21.8 | |||
Loss from sale of ownership interest | $ 3.3 | ||||
Wholly owned subsidiary [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 0.00% | 59.00% |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Loan proceeds held by servicer | $ 1,000 | $ 302,756 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 33,399 | $ 23,101 |
Collateral deposited under derivative agreements | 0 | 4,930 |
Other | 321 | 389 |
Other Assets | $ 33,720 | $ 28,420 |
Secured Debt Arrangements, Ne_2
Secured Debt Arrangements, Net - Weighted Average Maturities and Interest Rates of Borrowings (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018GBP (£) | Sep. 30, 2018USD ($) | Dec. 31, 2017GBP (£) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 1,879,522,000 | $ 1,330,847,000 | ||||
less: deferred financing costs | (17,555,000) | (14,348,000) | ||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 3,124,725,000 | 2,290,139,000 | ||||
Borrowings outstanding | 1,879,522,000 | 1,330,847,000 | ||||
less: deferred financing costs | $ (17,555,000) | $ (14,348,000) | ||||
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.17% | 2.37% | ||||
Line of Credit [Member] | GBP London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.28% | 2.60% | ||||
Line of Credit [Member] | JP Morgan Chase, DB Repurchase Facility, Goldman Sachs, Credit Suisse and HSBC Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 3,124,725,000 | $ 2,290,139,000 | ||||
Borrowings outstanding | 1,897,077,000 | $ 1,345,195,000 | ||||
Line of Credit [Member] | JP Morgan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.30% | |||||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 1,000,000,000 | |||||
Borrowings outstanding | 570,600,000 | £ 118,300,000 | ||||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.56% | |||||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | GBP London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.60% | |||||
Line of Credit [Member] | Goldman Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 300,000,000 | $ 331,130,000 | $ 300,000,000 | |||
Borrowings outstanding | 210,072,000 | $ 81,380,000 | ||||
Line of Credit [Member] | Goldman Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.73% | |||||
USD | Line of Credit [Member] | JP Morgan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 1,333,503,000 | $ 1,393,000,000 | ||||
Borrowings outstanding | 680,141,000 | 944,529,000 | ||||
USD | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 904,181,000 | 472,090,000 | ||||
Borrowings outstanding | 419,823,000 | $ 225,367,000 | ||||
USD | Line of Credit [Member] | Credit Suisse Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 187,117,000 | |||||
Borrowings outstanding | 187,117,000 | |||||
GBP | Line of Credit [Member] | JP Morgan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 48,497,000 | |||||
Borrowings outstanding | 48,497,000 | |||||
GBP | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | £ | 150,819,000 | £ 93,919,000 | ||||
Borrowings outstanding | £ | 150,819,000 | £ 93,919,000 | ||||
GBP | Line of Credit [Member] | Credit Suisse Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 151,773,000 | |||||
Borrowings outstanding | 151,773,000 | £ 119,000,000 | ||||
GBP | Line of Credit [Member] | HSBC Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 48,835,000 | |||||
Borrowings outstanding | $ 48,835,000 |
Secured Debt Arrangements, Ne_3
Secured Debt Arrangements, Net - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Jun. 30, 2018 | Nov. 30, 2017USD ($) | May 31, 2017USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | |
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | $ 1,879,522,000 | $ 1,330,847,000 | |||||||
Line of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 3,124,725,000 | 2,290,139,000 | |||||||
Securities sold under agreements to repurchase, gross | 1,897,077,000 | ||||||||
Borrowings outstanding | 1,879,522,000 | 1,330,847,000 | |||||||
Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Securities sold under agreements to repurchase, gross | $ 728,638,000 | ||||||||
Line of Credit [Member] | DB Repurchase Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 1,000,000,000 | ||||||||
Extension option | 1 year | ||||||||
Securities sold under agreements to repurchase, gross | $ 570,642,000 | ||||||||
Borrowings outstanding | 570,600,000 | £ 118,300,000 | |||||||
Line of Credit [Member] | Goldman Sachs Repurchase Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 300,000,000 | 300,000,000 | 331,130,000 | ||||||
Extension option | 1 year | ||||||||
Securities sold under agreements to repurchase, gross | 210,072,000 | ||||||||
Borrowings outstanding | 210,072,000 | 81,380,000 | |||||||
Line of Credit [Member] | Credit Suisse Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Term after either party notifies the other party of intention to terminate | 6 months | ||||||||
Line of Credit [Member] | HSBC Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Securities sold under agreements to repurchase, gross | 48,835,000 | ||||||||
Line of credit, amount outstanding | 48,800,000 | 38,300,000 | |||||||
JP Morgan Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of subsidiaries | subsidiary | 2 | ||||||||
Amended and Restated JPMorgan Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 1,382,000 | ||||||||
Extension option | 1 year | ||||||||
Securities sold under agreements to repurchase, gross | 728,600,000 | 38,000,000 | |||||||
Repurchase Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 1,250,000 | ||||||||
Asset Specific Financing [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 132,000,000 | ||||||||
Asset Specific Financing [Member] | Line of Credit [Member] | DB Repurchase Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, amount outstanding | 54,700,000 | ||||||||
USD | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 1,333,503,000 | 1,393,000,000 | |||||||
Borrowings outstanding | 680,141,000 | 944,529,000 | |||||||
USD | Line of Credit [Member] | DB Repurchase Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 904,181,000 | 472,090,000 | |||||||
Borrowings outstanding | 419,823,000 | $ 225,367,000 | |||||||
USD | Line of Credit [Member] | Credit Suisse Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 187,117,000 | ||||||||
Securities sold under agreements to repurchase, gross | 187,117,000 | ||||||||
Borrowings outstanding | 187,117,000 | ||||||||
Term after either party notifies the other party of intention to terminate | 6 months | ||||||||
GBP | Line of Credit [Member] | JP Morgan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 48,497,000 | ||||||||
Borrowings outstanding | 48,497,000 | ||||||||
GBP | Line of Credit [Member] | DB Repurchase Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | £ | 150,819,000 | £ 93,919,000 | |||||||
Borrowings outstanding | £ | 150,819,000 | £ 93,919,000 | |||||||
GBP | Line of Credit [Member] | Credit Suisse Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 151,773,000 | ||||||||
Securities sold under agreements to repurchase, gross | 151,773,000 | ||||||||
Borrowings outstanding | 151,773,000 | £ 119,000,000 | |||||||
GBP | Line of Credit [Member] | HSBC Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 48,835,000 | ||||||||
Borrowings outstanding | $ 48,835,000 |
Secured Debt Arrangements, Ne_4
Secured Debt Arrangements, Net - Remaining Maturities of Borrowings (Details) - Line of Credit [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Less than 1 year | $ 715,777 |
1 to 3 years | 1,181,300 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 1,897,077 |
JP Morgan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 153,759 |
1 to 3 years | 574,879 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 728,638 |
DB Repurchase Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 174,293 |
1 to 3 years | 396,349 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 570,642 |
Goldman Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 210,072 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 210,072 |
HSBC Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 48,835 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 48,835 |
USD | CS Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 187,117 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 187,117 |
GBP | CS Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 151,773 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | $ 151,773 |
Secured Debt Arrangements, Ne_5
Secured Debt Arrangements, Net - Summary of Outstanding Balances, Maximum and Average Balances of Borrowings (Details) - Line of Credit [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | $ 1,897,077 |
Amortized Cost of Collateral | 3,197,900 |
JP Morgan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 728,638 |
Amortized Cost of Collateral | 1,374,235 |
Maximum Month-End Balance | 1,000,854 |
Average Month-End Balance | 885,203 |
DB Repurchase Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 570,642 |
Amortized Cost of Collateral | 921,424 |
Maximum Month-End Balance | 707,405 |
Average Month-End Balance | 524,727 |
Goldman Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 210,072 |
Amortized Cost of Collateral | 362,577 |
Maximum Month-End Balance | 261,691 |
Average Month-End Balance | 176,145 |
HSBC Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 48,835 |
Amortized Cost of Collateral | 69,433 |
Maximum Month-End Balance | 49,896 |
Average Month-End Balance | 49,107 |
USD | CS Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 187,117 |
Amortized Cost of Collateral | 254,064 |
Maximum Month-End Balance | 189,839 |
Average Month-End Balance | 109,453 |
GBP | CS Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 151,773 |
Amortized Cost of Collateral | 216,167 |
Maximum Month-End Balance | 151,915 |
Average Month-End Balance | $ 147,651 |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Additional Information (Details) | Aug. 02, 2018USD ($)shares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)offering | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($)offering | Oct. 05, 2018USD ($) | Mar. 17, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible senior notes | $ 226,550,000 | $ 343,275,000 | $ 0 | |||||||||||||
Cash payment for debt redemption | 40,461,000 | 0 | 0 | |||||||||||||
Loss on early extinguishment of debt | $ 0 | $ 2,573,000 | $ 0 | $ 0 | $ 1,947,000 | $ 0 | $ 0 | $ 0 | 2,573,000 | 1,947,000 | 0 | |||||
Convertible senior notes, net | $ 592,000,000 | 584,897,000 | $ 592,000,000 | $ 592,000,000 | 584,897,000 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 16.66 | $ 16.66 | $ 16.66 | |||||||||||||
Exchange of Notes for common stock | $ 180,016,000 | |||||||||||||||
2019 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on early extinguishment of debt | 2,600,000 | |||||||||||||||
Convertible Debt [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal Amount | $ 609,482,000 | $ 609,482,000 | 609,482,000 | |||||||||||||
Interest expense on debt | 28,200,000 | 18,700,000 | 14,000,000 | |||||||||||||
Additional non-cash interest expense | 7,100,000 | $ 4,700,000 | $ 3,500,000 | |||||||||||||
Convertible Debt [Member] | 2019 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of debt offerings issued | offering | 2 | |||||||||||||||
Principal Amount | $ 254,800,000 | $ 34,482,000 | ||||||||||||||
Coupon Rate | 5.50% | |||||||||||||||
Proceeds from issuance of convertible senior notes | $ 248,600,000 | |||||||||||||||
Principal amount redeemed | $ 206,200,000 | 14,100,000 | 220,300,000 | |||||||||||||
Cash payment for debt redemption | $ 39,300,000 | 200,000 | ||||||||||||||
Convertible senior notes, net | 34,300,000 | 34,300,000 | 34,300,000 | |||||||||||||
Unamortized discount | 200,000 | 200,000 | 200,000 | |||||||||||||
Convertible Debt [Member] | 2022 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Number of debt offerings issued | offering | 2 | |||||||||||||||
Principal Amount | $ 345,000,000 | $ 345,000,000 | ||||||||||||||
Coupon Rate | 4.75% | 4.75% | ||||||||||||||
Proceeds from issuance of convertible senior notes | $ 337,500,000 | |||||||||||||||
Convertible senior notes, net | 335,300,000 | 335,300,000 | 335,300,000 | |||||||||||||
Unamortized discount | 9,700,000 | 9,700,000 | 9,700,000 | |||||||||||||
Convertible Debt [Member] | 2023 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Principal Amount | 230,000,000 | 230,000,000 | 230,000,000 | $ 230,000,000 | ||||||||||||
Coupon Rate | 5.375% | |||||||||||||||
Proceeds from issuance of convertible senior notes | 223,700,000 | |||||||||||||||
Convertible senior notes, net | 222,400,000 | 222,400,000 | 222,400,000 | |||||||||||||
Unamortized discount | 7,600,000 | $ 7,600,000 | $ 7,600,000 | |||||||||||||
Common Stock [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of convertible senior notes for common stock (in shares) | shares | 10,828,475 | |||||||||||||||
Exchange of Notes for common stock | $ 108,000 | |||||||||||||||
Common Stock [Member] | Convertible Debt [Member] | 2019 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of convertible senior notes for common stock (in shares) | shares | 10,020,328 | 808,148 | ||||||||||||||
Additional Paid In Capital [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of Notes for common stock | 179,908,000 | |||||||||||||||
Fair value of debt component of exchanged and converted Notes | $ 27,200,000 | $ 27,200,000 | 27,200,000 | |||||||||||||
Additional Paid In Capital [Member] | Convertible Debt [Member] | 2019 and 2022 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of Notes for common stock | 26,800,000 | |||||||||||||||
Additional Paid In Capital [Member] | Convertible Debt [Member] | 2019 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of Notes for common stock | $ 166,000,000 | $ 13,900,000 | 11,400,000 | |||||||||||||
Additional Paid In Capital [Member] | Convertible Debt [Member] | 2022 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of Notes for common stock | 11,000,000 | |||||||||||||||
Additional Paid In Capital [Member] | Convertible Debt [Member] | 2023 Notes [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange of Notes for common stock | $ 4,400,000 |
Convertible Senior Notes, Net_2
Convertible Senior Notes, Net - Summary of Terms of Notes (Details) - Convertible Debt [Member] | Oct. 05, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) | Mar. 17, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Principal Amount | $ 609,482,000 | ||||
Conversion rate basis, principal amount | 1,000 | ||||
2019 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 254,800,000 | $ 34,482,000 | |||
Coupon Rate | 5.50% | ||||
Effective Rate | 8.31% | ||||
Conversion Rate | 0.0582442 | ||||
Remaining Period of Amortization | 2 months 15 days | ||||
2022 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 345,000,000 | ||||
Coupon Rate | 4.75% | ||||
Effective Rate | 5.60% | ||||
Conversion Rate | 0.0502260 | ||||
Remaining Period of Amortization | 3 years 7 months 23 days | ||||
2023 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal Amount | $ 230,000,000 | $ 230,000,000 | |||
Coupon Rate | 5.375% | ||||
Effective Rate | 6.16% | ||||
Conversion Rate | 0.0487187 | ||||
Remaining Period of Amortization | 4 years 9 months 15 days |
Derivatives, Net - Summary of N
Derivatives, Net - Summary of Non-Designated Foreign Exchange Forwards (Details) - GBP - Not Designated as Hedging Instrument [Member] - Forward Currency Contract [Member] | Dec. 31, 2018GBP (£)contract | Dec. 31, 2017GBP (£)contract |
Derivative [Line Items] | ||
Number of Contracts | contract | 43 | 24 |
Aggregate Notional Amount (in thousands) | £ | £ 270,161,484 | £ 177,077,000 |
Derivatives, Net - Summary of A
Derivatives, Net - Summary of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivative instruments - unrealized | $ 29,345 | $ (11,523) | $ 2,608 | ||||||||
Gain (loss) on derivative instruments - realized | 0 | (289) | 28,552 | ||||||||
Gain (loss) on derivative instruments | $ 10,261 | $ 6,291 | $ 33,538 | $ (11,032) | $ (1,265) | $ (7,481) | $ (7,389) | $ (3,045) | 39,058 | (19,180) | 31,160 |
Total | 39,058 | (19,767) | 31,160 | ||||||||
Forward Currency Contract [Member] | Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivative instruments - unrealized | 29,345 | (11,527) | 2,665 | ||||||||
Gain (loss) on derivative instruments - realized | 9,713 | (7,657) | 28,552 | ||||||||
Forward Currency Contract [Member] | Loss From Unconsolidated Joint Venture [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivative instruments - realized | 0 | (587) | 0 | ||||||||
Interest Rate Cap [Member] | Gain (Loss) on Derivative Instruments [Member] | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivative instruments - unrealized | 0 | 4 | (57) | ||||||||
Notional amount | $ 34,900 | $ 40,200 | $ 34,900 | $ 40,200 | $ 45,500 |
Derivatives, Net - Summarizes G
Derivatives, Net - Summarizes Gross Asset and Liability Amounts Related to Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Asset [Abstract] | ||
Gross Amount of Recognized Assets | $ 23,753 | |
Gross Amounts Offset in the Consolidated Balance Sheet | (53) | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 23,700 | $ 0 |
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | (5,645) | |
Gross Amounts Offset in the Consolidated Balance Sheet | 1 | |
Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheet | 0 | (5,644) |
Interest Rate Cap [Member] | ||
Derivative Asset [Abstract] | ||
Gross Amount of Recognized Assets | 0 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 0 | |
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | 0 | |
Gross Amounts Offset in the Consolidated Balance Sheet | 1 | |
Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheet | 1 | |
Forward Currency Contract [Member] | ||
Derivative Asset [Abstract] | ||
Gross Amount of Recognized Assets | 23,753 | |
Gross Amounts Offset in the Consolidated Balance Sheet | (53) | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 23,700 | |
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | (5,645) | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Amounts of Assets (Liabilities) Presented in the Consolidated Balance Sheet | $ (5,645) |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued dividends payable | $ 69,033 | $ 56,576 |
Collateral deposited under derivative agreements | 20,000 | 0 |
Accrued interest payable | 14,208 | 12,796 |
Accounts payable and other liabilities | 1,505 | 1,534 |
Total | $ 104,746 | $ 70,906 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | May 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | |||||||||||||||||
Related party expenses | $ 9,804 | $ 9,515 | $ 9,013 | $ 8,092 | $ 8,169 | $ 8,309 | $ 7,742 | $ 7,432 | $ 36,424 | $ 31,652 | $ 23,388 | ||||||
Base management fees incurred but not yet paid | 9,804 | 8,168 | 9,804 | 8,168 | |||||||||||||
Commercial mortgage loans and subordinate loans, net | 4,927,593 | 3,679,758 | $ 4,927,593 | 3,679,758 | |||||||||||||
Limited Liability Company [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Rate of management fees | 1.50% | ||||||||||||||||
Extension period | 1 year | ||||||||||||||||
Voting requirement to termination management agreement, percentage | 66.66% | ||||||||||||||||
Period of termination | 180 days | ||||||||||||||||
Termination vote threshold rate, percentage | 300.00% | ||||||||||||||||
Termination fee calculation period | 24 months | ||||||||||||||||
Limited Liability Company [Member] | Management Fees [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Base management fees incurred but not yet paid | $ 9,800 | 8,200 | $ 9,800 | 8,200 | |||||||||||||
Affiliated Entity [Member] | Management Fees [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party expenses | 36,400 | 31,700 | 23,400 | ||||||||||||||
Affiliated Entity [Member] | Reimbursements [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related party expenses | $ 3,100 | 2,600 | $ 2,500 | ||||||||||||||
Champ Limited Partnership [Member] | Subsidiaries [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Indirect ownership interest from limited partnership | 0.00% | 0.00% | 59.00% | ||||||||||||||
Commercial Mortgage Portfolio Segment [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Commercial mortgage loans and subordinate loans, net | $ 3,878,981 | $ 2,653,826 | $ 3,878,981 | $ 2,653,826 | |||||||||||||
Commercial Mortgage Portfolio Segment [Member] | Affiliated Entity [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payments to acquire loans receivable | $ 6,400 | £ 4.8 | $ 28,200 | $ 25,000 | $ 25,000 | ||||||||||||
Commercial mortgage loans and subordinate loans, net | $ 300,000 | $ 125,000 | $ 100,000 | $ 125,000 | $ 100,000 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 23, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 13,588 | $ 13,314 | $ 7,090 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 800 | |||
RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 30,800 | |||
LTIP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of issued and outstanding shares of common stock provides for grants of restricted common stock, restricted stock units and other equity-based awards | 7.50% | |||
Common stock, shares delivered (in shares) | 378,855 | 200,859 | 236,782 | |
LTIP [Member] | RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units vested (in shares) | 741,210 | 938,541 | 397,030 | |
Adjustments to additional paid in capital, income tax deficiency from share-based compensation | $ 4,800 | $ 2,300 | $ 2,600 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs (Details) - LTIP [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grant Date Fair Value | $ 19,148 | $ 17,496 | $ 16,477 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 105,561 | 150,110 | 107,385 |
Grant (in shares) | 28,070 | 27,700 | 92,056 |
Vested (in shares) | (67,934) | (72,249) | (49,331) |
Forfeitures (in shares) | 0 | 0 | 0 |
Outstanding, ending balance (in shares) | 65,697 | 105,561 | 150,110 |
RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 1,632,746 | 1,703,775 | 1,242,810 |
Grant (in shares) | 1,006,800 | 912,916 | 903,068 |
Vested (in shares) | (739,388) | (938,541) | (397,030) |
Forfeitures (in shares) | (47,201) | (45,404) | (45,073) |
Outstanding, ending balance (in shares) | 1,852,957 | 1,632,746 | 1,703,775 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Restricted Stock and RSU Vesting Dates (Details) - LTIP [Member] | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,918,654 |
2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 950,537 |
2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 633,204 |
2021 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 334,913 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 65,697 |
Restricted Stock [Member] | 2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 60,803 |
Restricted Stock [Member] | 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 4,894 |
Restricted Stock [Member] | 2021 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 0 |
RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,852,957 |
RSU [Member] | 2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 889,734 |
RSU [Member] | 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 628,310 |
RSU [Member] | 2021 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 334,913 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Oct. 31, 2017 | Aug. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||||||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||||
Common stock, shares issued (in shares) | 133,853,565 | 107,121,235 | ||||||
Common shares outstanding (in shares) | 133,853,565 | 107,121,235 | ||||||
Share price (in dollars per share) | $ 16.66 | |||||||
Proceeds from issuance of common stock, net of offering costs | $ 275.9 | $ 248.9 | $ 177.8 | |||||
Series B Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | |||||||
Preferred stock, shares issued (in shares) | 6,770,393 | 6,770,393 | ||||||
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 | ||||||
Stock repurchased (in shares) | 1,229,607 | |||||||
Value of stock repurchased | $ 30.8 | |||||||
Share price (in dollars per share) | $ 25.04 | |||||||
Preferred stock, liquidation value per share (in dollars per share) | 25 | |||||||
Preferred stock, accumulated and unpaid dividends (in dollars per share) | 0.04 | |||||||
Series C Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 6,900,000 | 6,900,000 | ||||||
Preferred stock, shares outstanding (in shares) | 6,900,000 | 6,900,000 | ||||||
Series A Preferred Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 3,450,000 | |||||||
Preferred stock, accumulated and unpaid dividends (in dollars per share) | $ 0.1079 | |||||||
Preferred stock, redemption price (in dollars per share) | $ 25 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of stock (in shares) | 15,525,000 | 15,470,000 | 10,500,000 | |||||
Exchange of convertible senior notes for common stock (in shares) | 10,828,475 | |||||||
Common Stock [Member] | Follow-on public offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of stock (in shares) | 15,525,000 | 13,800,000 | 10,500,000 | |||||
Price per share of issued stock (in dollars per share) | $ 17.77 | $ 18.05 | $ 16.97 | $ 16.97 | ||||
QHREAC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | |||||||
Stock repurchased (in shares) | 1,670,000 | |||||||
Value of stock repurchased | $ 30.8 | |||||||
Share price (in dollars per share) | $ 18.44 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | |
Common stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.46 | 1.84 | 1.84 | $ 1.84 | |||||
Series A Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | 1.19 | 2.16 | |||||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | 2 | 2 | 2 | ||||||
Series C Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 2 | $ 1 | $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Total damages including punitive | $ 70,000 | ||
Damages sought by plaintiff | $ 700,000 | ||
Unfunded loan commitments | $ 1,095,598 | $ 435,627 | |
Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Unfunded loan commitments | $ 1,100,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | $ 109,806 | $ 77,671 |
Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements | (1,897,077) | (1,345,195) |
Estimated Fair Value [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | 109,806 | 77,671 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements | (1,897,077) | (1,345,195) |
Commercial Mortgage Portfolio Segment [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,878,981 | 2,653,826 |
Commercial Mortgage Portfolio Segment [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,894,947 | 2,657,262 |
Subordinate Mortgage Portfolio Segment [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,048,612 | 1,025,932 |
Subordinate Mortgage Portfolio Segment [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,047,854 | 1,029,390 |
2019 Notes [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (34,278) | (251,935) |
2019 Notes [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (35,276) | (276,506) |
2022 Notes [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (335,291) | (332,962) |
2022 Notes [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (326,025) | (350,175) |
2023 Notes [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (222,431) | 0 |
2023 Notes [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | $ (221,964) | $ 0 |
Net Income (Loss) per Share - B
Net Income (Loss) per Share - Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic Earnings | |||||||||||
Net income | $ 52,990 | $ 62,217 | $ 55,346 | $ 49,433 | $ 41,315 | $ 68,356 | $ 36,235 | $ 47,125 | $ 219,986 | $ 193,031 | $ 157,876 |
Preferred dividends | (6,835) | (6,836) | (6,834) | (6,835) | (6,993) | (11,148) | (9,310) | (9,310) | (27,340) | (36,761) | (30,295) |
Net income available to common stockholders | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | $ 34,322 | $ 57,208 | $ 26,925 | $ 37,815 | 192,646 | 156,270 | 127,581 |
Less: Dividends on participating securities | (3,405) | (2,913) | (2,087) | ||||||||
Basic Earnings | 189,241 | 153,357 | 125,494 | ||||||||
Diluted Earnings | |||||||||||
Net income available to common stockholders | 192,646 | 156,270 | 127,581 | ||||||||
Add: Interest expense on Notes | 34,779 | ||||||||||
Diluted Earnings | $ 227,425 | $ 156,270 | $ 127,581 | ||||||||
Number of Shares: | |||||||||||
Basic weighted average shares of common stock outstanding (in shares) | 133,852,915 | 129,188,343 | 123,019,993 | 110,211,853 | 106,721,887 | 105,446,704 | 95,428,134 | 91,612,447 | 124,147,073 | 99,859,153 | 72,371,374 |
Diluted weighted average shares of common stock outstanding (in shares) | 163,900,633 | 153,918,435 | 124,629,317 | 111,871,429 | 108,095,950 | 106,812,721 | 96,796,289 | 92,998,250 | 153,821,515 | 101,232,610 | 73,305,101 |
Earnings Per Share Attributable to common stockholders | |||||||||||
Basic (in dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.52 | $ 1.54 | $ 1.74 |
Diluted (in dollars per share) | $ 0.34 | $ 0.40 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.48 | $ 1.54 | $ 1.74 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially issuable shares from Notes included in the dilutive earnings per share denominator (in shares) | 29,674,442 | ||
RSU [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Unvested RSUs (in shares) | 1,612,676 | 1,373,457 | 933,727 |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) | Aug. 31, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Proceeds from sale of mortgage based securities | $ 1,100,000,000 | |
Apollo Residential Mortgage, Inc. Merger [Member] | ||
Business Acquisition [Line Items] | ||
Transaction-related expenses | $ 11,400,000 | |
Loans Payable [Member] | ||
Business Acquisition [Line Items] | ||
Repayments of debt | 804,000,000 | |
Loans Payable [Member] | Athene Loan Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Principal Amount | 175,000,000 | |
Repayments of debt | $ 175,000,000 |
Business Combination - Fair Val
Business Combination - Fair Value of Net Assets and Consideration Paid (Details) - USD ($) $ in Thousands | Aug. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities assumed: | ||||
Bargain purchase gain | $ 0 | $ 0 | $ 40,021 | |
Apollo Residential Mortgage, Inc. Merger [Member] | ||||
Consideration Paid: | ||||
Cash | $ 220,159 | |||
Total consideration paid | 611,056 | |||
Assets acquired: | ||||
Cash and cash equivalents | 399,402 | |||
Restricted cash | 10,552 | |||
Investments | 1,491,484 | |||
Other assets | 34,822 | |||
Liabilities assumed: | ||||
Borrowings under repurchase agreements | (1,254,518) | |||
Other liabilities | (30,665) | |||
Net assets acquired | 651,077 | |||
Bargain purchase gain | 40,021 | |||
Common Stock [Member] | Apollo Residential Mortgage, Inc. Merger [Member] | ||||
Consideration Paid: | ||||
Consideration transferred, equity interests issued and issuable | 218,397 | |||
Preferred Stock [Member] | Apollo Residential Mortgage, Inc. Merger [Member] | ||||
Consideration Paid: | ||||
Consideration transferred, equity interests issued and issuable | $ 172,500 |
Business Combination - Bargain
Business Combination - Bargain Purchase Gain (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||||||||
Net income available to common stockholders | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | $ 34,322 | $ 57,208 | $ 26,925 | $ 37,815 | $ 192,646 | $ 156,270 | $ 127,581 |
Common shares outstanding (in shares) | 133,853,565 | 107,121,235 | 133,853,565 | 107,121,235 | |||||||
Apollo Residential Mortgage, Inc. Merger [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Total revenue | 349,948 | ||||||||||
Net income available to common stockholders | $ 89,877 | ||||||||||
Common shares outstanding (in shares) | 91,422,676 | ||||||||||
Net income per common share, basic and diluted (in dollars per share) | $ 0.98 |
Summarized Quarterly Results _3
Summarized Quarterly Results (Unaudited) - Schedule of Summarized Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net interest income: | |||||||||||
Interest income from commercial mortgage loans | $ 75,275 | $ 71,179 | $ 65,141 | $ 52,114 | $ 45,942 | $ 41,203 | $ 37,089 | $ 34,398 | $ 263,709 | $ 158,632 | $ 102,927 |
Interest income from subordinate loans | 34,944 | 37,308 | 34,075 | 33,853 | 43,993 | 47,268 | 39,640 | 34,390 | 140,180 | 165,291 | 122,394 |
Interest income from securities | 0 | 0 | 0 | 0 | 1,219 | 2,625 | 4,700 | 6,054 | 0 | 14,598 | 39,055 |
Interest expense | (32,413) | (31,007) | (28,437) | (22,740) | (21,967) | (19,855) | (19,205) | (17,030) | (114,597) | (78,057) | (63,759) |
Net interest income | 77,806 | 77,480 | 70,779 | 63,227 | 69,187 | 71,241 | 62,224 | 57,812 | 289,292 | 260,464 | 200,617 |
Operating expenses: | |||||||||||
General and administrative expenses | (3,977) | (5,843) | (5,652) | (4,998) | (5,138) | (4,629) | (5,200) | (5,758) | (20,470) | (20,725) | (24,983) |
Management fees to related party | (9,804) | (9,515) | (9,013) | (8,092) | (8,169) | (8,309) | (7,742) | (7,432) | (36,424) | (31,652) | (23,388) |
Total operating expenses | (13,781) | (15,358) | (14,665) | (13,090) | (13,307) | (12,938) | (12,942) | (13,190) | (56,894) | (52,377) | (48,371) |
Income (loss) from unconsolidated joint venture | 0 | 0 | 0 | 0 | 0 | 0 | (3,305) | 458 | 0 | (2,847) | (96) |
Other income | 465 | 427 | 343 | 203 | 229 | 359 | 244 | 108 | 1,438 | 940 | 1,094 |
Provision for loan losses and impairments | (15,000) | 0 | (5,000) | 0 | 0 | 0 | (5,000) | 0 | (20,000) | (5,000) | (15,000) |
Realized loss on sale of assets | 0 | 0 | 0 | 0 | (37,575) | (4,076) | 0 | (1,042) | 0 | (42,693) | 3,834 |
Unrealized gain (loss) on securities | 0 | 0 | 0 | 0 | 25,335 | 13,488 | (4,510) | 2,852 | 0 | 37,165 | (26,099) |
Foreign currency gain (loss) | (6,761) | (4,050) | (29,649) | 10,125 | 658 | 7,763 | 6,913 | 3,172 | (30,335) | 18,506 | (29,284) |
Loss on early extinguishment of debt | 0 | (2,573) | 0 | 0 | (1,947) | 0 | 0 | 0 | (2,573) | (1,947) | 0 |
Gain (loss) on derivative instruments | 10,261 | 6,291 | 33,538 | (11,032) | (1,265) | (7,481) | (7,389) | (3,045) | 39,058 | (19,180) | 31,160 |
Net income | 52,990 | 62,217 | 55,346 | 49,433 | 41,315 | 68,356 | 36,235 | 47,125 | 219,986 | 193,031 | 157,876 |
Preferred dividends | (6,835) | (6,836) | (6,834) | (6,835) | (6,993) | (11,148) | (9,310) | (9,310) | (27,340) | (36,761) | (30,295) |
Net income available to common stockholders | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | $ 34,322 | $ 57,208 | $ 26,925 | $ 37,815 | $ 192,646 | $ 156,270 | $ 127,581 |
Net income per share of common stock: | |||||||||||
Basic (in dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.52 | $ 1.54 | $ 1.74 |
Diluted (in dollars per share) | $ 0.34 | $ 0.40 | $ 0.39 | $ 0.38 | $ 0.32 | $ 0.54 | $ 0.28 | $ 0.41 | $ 1.48 | $ 1.54 | $ 1.74 |
Basic weighted average shares of common stock outstanding (in shares) | 133,852,915 | 129,188,343 | 123,019,993 | 110,211,853 | 106,721,887 | 105,446,704 | 95,428,134 | 91,612,447 | 124,147,073 | 99,859,153 | 72,371,374 |
Diluted weighted average shares of common stock outstanding (in shares) | 163,900,633 | 153,918,435 | 124,629,317 | 111,871,429 | 108,095,950 | 106,812,721 | 96,796,289 | 92,998,250 | 153,821,515 | 101,232,610 | 73,305,101 |
Dividend declared per share of common stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 2 Months Ended | |
Feb. 14, 2019 | Dec. 31, 2018 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Proceeds from loan repayments | $ 213.9 | |
Commercial Mortgage Portfolio Segment [Member] | ||
Subsequent Event [Line Items] | ||
Funded amount of mortgages | $ 65.2 | |
Commercial Mortgage Portfolio Segment [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Original face amount | 203.8 | |
Funded amount of mortgages | 197 | |
Subordinate Mortgage Portfolio Segment [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Original face amount | $ 228 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | $ 4,982,514 | |
Carrying value | 4,927,593 | $ 3,679,758 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Commercial Mortgage Portfolio Segment [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 3,928,234 | |
Carrying value | 3,878,981 | 2,653,826 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Subordinate Mortgage Portfolio Segment [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 1,054,280 | |
Carrying value | 1,048,612 | 1,025,932 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Urban Retail Predevelopment [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | 683,886 | 654,736 |
Urban Retail Predevelopment [Member] | Urban Retail Predevelopment, July 2019 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 220,000 | |
Carrying value | 222,017 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Urban Retail Predevelopment [Member] | Urban Retail Predevelopment, March 2019 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 178,556 | |
Carrying value | 178,117 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Residential-for-sale: inventory [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | 577,053 | 92,438 |
Residential-for-sale: inventory [Member] | Residential-For-Sale, Inventory, March 2021 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 216,818 | |
Carrying value | 216,168 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Hotel [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | 1,286,590 | 645,056 |
Hotel [Member] | Hotel, January 2022 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 215,000 | |
Carrying value | 215,323 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Hotel [Member] | Hotel, April 2023 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 151,550 | |
Carrying value | 150,959 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Office [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | 832,620 | 513,830 |
Office [Member] | Office, October 2021 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 177,617 | |
Carrying value | 176,260 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Office [Member] | Office, January 2023 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 172,626 | |
Carrying value | 171,312 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Retail Center [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | 156,067 | 198,913 |
Retail Center [Member] | Retail Center, September 2020 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 169,035 | |
Carrying value | 156,067 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
Hotel, Office, Multifamily, Residential-For-Sale: Inventory, Urban Retail Predevelopment, Residential-For-Sale: Construction, Other, Mixed Use [Member] | Hotel, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale, Retail Center, Urbain Retail Predevelopment, 2018 - 2022 [Member] | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 37 | |
Principal Balance | $ 2,427,032 | |
Carrying value | 2,392,758 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Residential-for Sale [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 442,200 | |
Residential-for Sale [Member] | Residential-for Sale, July 2020 | Subordinate Mortgage Portfolio Segment, Loans In Excess Of 3% Of Carrying Amount Of Total Subordinate Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 181,572 | |
Carrying value | 182,895 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
Residential-for Sale: Construction, Hotel, Multifamily, Other, Mixed Use, Residential-For-Sale: Inventory, Industrial, Office [Member] | Healthcare, Hotel, Industrial, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale 2018 - 2027 [Member] | Subordinate Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Subordinate Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 23 | |
Principal Balance | $ 872,708 | |
Carrying value | 865,717 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
London Interbank Offered Rate (LIBOR) [Member] | Urban Retail Predevelopment [Member] | Urban Retail Predevelopment, July 2019 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 8.80% | |
London Interbank Offered Rate (LIBOR) [Member] | Urban Retail Predevelopment [Member] | Urban Retail Predevelopment, March 2019 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 5.90% | |
London Interbank Offered Rate (LIBOR) [Member] | Residential-for-sale: inventory [Member] | Residential-For-Sale, Inventory, March 2021 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 7.20% | |
London Interbank Offered Rate (LIBOR) [Member] | Hotel [Member] | Hotel, January 2022 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 7.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Hotel [Member] | Hotel, April 2023 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 5.80% | |
London Interbank Offered Rate (LIBOR) [Member] | Office [Member] | Office, October 2021 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 5.90% | |
London Interbank Offered Rate (LIBOR) [Member] | Office [Member] | Office, January 2023 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 7.30% | |
London Interbank Offered Rate (LIBOR) [Member] | Retail Center [Member] | Retail Center, September 2020 [Member] | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 5.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Residential-for Sale [Member] | Residential-for Sale, July 2020 | Subordinate Mortgage Portfolio Segment, Loans In Excess Of 3% Of Carrying Amount Of Total Subordinate Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 16.80% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Hotel, Office, Multifamily, Residential-For-Sale: Inventory, Urban Retail Predevelopment, Residential-For-Sale: Construction, Other, Mixed Use [Member] | Hotel, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale, Retail Center, Urbain Retail Predevelopment, 2018 - 2022 [Member] | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 0.00% | |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Residential-for Sale: Construction, Hotel, Multifamily, Other, Mixed Use, Residential-For-Sale: Inventory, Industrial, Office [Member] | Healthcare, Hotel, Industrial, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale 2018 - 2027 [Member] | Subordinate Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Subordinate Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 0.00% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Hotel, Office, Multifamily, Residential-For-Sale: Inventory, Urban Retail Predevelopment, Residential-For-Sale: Construction, Other, Mixed Use [Member] | Hotel, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale, Retail Center, Urbain Retail Predevelopment, 2018 - 2022 [Member] | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 9.80% | |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Residential-for Sale: Construction, Hotel, Multifamily, Other, Mixed Use, Residential-For-Sale: Inventory, Industrial, Office [Member] | Healthcare, Hotel, Industrial, Mixed Use, Office, Other, Residential-for Rent, Residential-for Sale 2018 - 2027 [Member] | Subordinate Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Subordinate Loans [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 20.00% |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate (Details 2) $ in Billions | Dec. 31, 2018USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Aggregate cost of mortgage loans on real estate | $ 5 |
Schedule IV - Mortgage Loans _4
Schedule IV - Mortgage Loans on Real Estate - Summary of Changes in Carrying Amounts of Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Balance at beginning of year | $ 3,679,758 | $ 2,693,092 | $ 3,679,758 | $ 2,693,092 | |||||||
Loan fundings | 2,350,865 | 1,828,758 | |||||||||
Loan repayments | (1,066,843) | (891,848) | |||||||||
Unrealized gain (loss) on foreign currency translation | (51,013) | 23,612 | |||||||||
Discount accretion | 0 | 0 | |||||||||
Provision for loan losses | (20,000) | (1,981) | |||||||||
Deferred Fees | (34,066) | (27,424) | |||||||||
PIK interest, amortization of fees and other items | 68,892 | 55,549 | |||||||||
Balance at close of the year | $ 4,927,593 | $ 3,679,758 | 4,927,593 | 3,679,758 | $ 2,693,092 | ||||||
Provision for loan losses and impairment | 15,000 | $ 0 | $ 5,000 | $ 0 | $ 0 | $ 0 | $ 5,000 | $ 0 | 20,000 | 5,000 | $ 15,000 |
Commercial Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | 37,000 | ||||||||||
Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | 20,000 | ||||||||||
Subordinate Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | 17,000 | ||||||||||
Other Assets [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Impairment | 3,000 | ||||||||||
Other Assets [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Impairment | 3,000 | 3,000 | |||||||||
Affiliated Entity [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Loan fundings | 34,600 | ||||||||||
Residential Condominium - Bethesda, MD And Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | 20,000 | ||||||||||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | 5,000 | ||||||||||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | $ 5,000 | $ 2,000 | $ 2,000 | ||||||||
Retail Center - Cincinnati, OH [Member] | Commercial Mortgage Portfolio Segment [Member] | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||||||
Provision for loan losses and impairment | $ 15,000 | $ 15,000 |