Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-34452 | ||
Entity Registrant Name | APOLLO COMMERCIAL REAL ESTATE FINANCE, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-0467113 | ||
Entity Address, Address Line One | 9 West 57th Street | ||
Entity Address, Address Line Two | 43rd Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10019 | ||
City Area Code | 212 | ||
Local Phone Number | 515-3200 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | ARI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Small Business Entity | false | ||
Emerging Growth Company | false | ||
Shell Company | false | ||
Entity Public Float | $ 2,768,982,061 | ||
Entity Common Stock, Shares Outstanding | 154,040,547 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for the 2020 annual meeting of stockholders scheduled to be held on or about June 2, 2020 are incorporated by reference into Part III of this annual report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001467760 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 452,282 | $ 109,806 |
Commercial mortgage loans and subordinate loans and other lending assets, net | 6,375,093 | 4,927,593 |
Other assets | 52,716 | 33,720 |
Loan proceeds held by servicer | 8,272 | 1,000 |
Derivative assets, net | 0 | 23,700 |
Total Assets | 6,888,363 | 5,095,819 |
Liabilities: | ||
Secured debt arrangements, net (net of deferred financing costs of $17,190 and $17,555 in 2019 and 2018, respectively) | 3,078,366 | 1,879,522 |
Convertible senior notes, net | 561,573 | 592,000 |
Senior secured term loan, net (net of deferred financing costs of $7,277 and $0 in 2019 and 2018, respectively) | 487,961 | 0 |
Accounts payable, accrued expenses and other liabilities | 100,712 | 104,746 |
Derivative liabilities, net | 19,346 | 0 |
Payable to related party | 10,430 | 9,804 |
Total Liabilities | 4,258,388 | 2,586,072 |
Commitments and Contingencies (see Note 15) | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value, 450,000,000 shares authorized, 153,537,296 and 133,853,565 shares issued and outstanding in 2019 and 2018, respectively | 1,535 | 1,339 |
Additional paid-in-capital | 2,825,317 | 2,638,441 |
Accumulated deficit | (196,945) | (130,170) |
Total Stockholders’ Equity | 2,629,975 | 2,509,747 |
Total Liabilities and Stockholders’ Equity | 6,888,363 | 5,095,819 |
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 68 | 68 |
Series C Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 0 | 69 |
Commercial Mortgage Portfolio Segment | ||
Assets: | ||
Commercial mortgage loans and subordinate loans and other lending assets, net | 5,326,967 | 3,878,981 |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | ||
Assets: | ||
Commercial mortgage loans and subordinate loans and other lending assets, net | $ 1,048,126 | $ 1,048,612 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred financing costs | $ 24,500 | $ 17,600 |
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) | 153,537,296 | 133,853,565 |
Common stock, shares outstanding (in shares) | 153,537,296 | 133,853,565 |
Series B Preferred Stock | ||
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, liquidation preference | $ 169,260 | $ 169,260 |
Series C Preferred Stock | ||
Preferred stock, shares issued (in shares) | 0 | 6,900,000 |
Preferred stock, shares outstanding (in shares) | 0 | 6,900,000 |
Preferred stock, liquidation preference | $ 0 | $ 172,500 |
Commercial Mortgage Portfolio Segment | ||
Loans pledged as collateral | 4,852,087 | 3,197,900 |
Secured Debt | ||
Deferred financing costs | 7,277 | 0 |
Line of Credit | ||
Deferred financing costs | 17,190 | 17,555 |
Deferred financing costs | $ 17,190 | $ 17,555 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net interest income: | |||
Interest income from commercial mortgage loans | $ 322,475 | $ 263,709 | $ 158,632 |
Interest income from subordinate loans and other lending assets | 164,933 | 140,180 | 179,889 |
Interest expense | (152,926) | (114,597) | (78,057) |
Net interest income | 334,482 | 289,292 | 260,464 |
Operating expenses: | |||
General and administrative expenses (includes equity-based compensation of $15,897 in 2019, $13,588 in 2018, and $13,314 in 2017) | (24,097) | (20,470) | (20,725) |
Management fees to related party | (40,734) | (36,424) | (31,652) |
Total operating expenses | (64,831) | (56,894) | (52,377) |
Loss from unconsolidated joint venture | 0 | 0 | (2,847) |
Other income | 2,113 | 1,438 | 940 |
Provision for loan losses and impairments, net of reversals | (20,000) | (20,000) | (5,000) |
Realized loss on investments | (12,513) | 0 | (42,693) |
Unrealized gain on securities | 0 | 0 | 37,165 |
Foreign currency gain (loss) | 19,818 | (30,335) | 18,506 |
Loss on early extinguishment of debt | 0 | (2,573) | (1,947) |
Gain (loss) on foreign currency forwards | (14,425) | 39,058 | (19,180) |
Gain (loss) on interest rate swap | (14,470) | 0 | 0 |
Net income | 230,174 | 219,986 | 193,031 |
Preferred dividends | (18,525) | (27,340) | (36,761) |
Net income available to common stockholders | $ 211,649 | $ 192,646 | $ 156,270 |
Net income per share of common stock: | |||
Basic (in dollars per share) | $ 1.41 | $ 1.52 | $ 1.54 |
Diluted (in dollars per share) | $ 1.40 | $ 1.48 | $ 1.54 |
Basic weighted-average shares of common stock outstanding (in shares) | 146,881,231 | 124,147,073 | 99,859,153 |
Diluted weighted-average shares of common stock outstanding (in shares) | 175,794,896 | 153,821,515 | 101,232,610 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
General and administrative expenses, equity-based compensation | $ 15,897 | $ 13,588 | $ 13,314 |
Unrealized gain (loss) on derivatives | $ (28,576) | $ 29,345 | $ (11,523) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income available to common stockholders | $ 211,649 | $ 192,646 | $ 156,270 |
Foreign currency translation adjustment | 0 | 0 | 3,811 |
Comprehensive income | $ 211,649 | $ 192,646 | $ 160,081 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2016 | 18,350,000 | 91,422,676 | ||||
Stockholders' equity, beginning 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Capital increase related to Equity Incentive Plan (in shares) | 466,370 | |||||
Capital increase related to Equity Incentive Plan | 10,901 | $ 4 | 10,897 | |||
Issuance of common stock (in shares) | 17,250,000 | |||||
Issuance of common stock | 315,157 | $ 172 | 314,985 | |||
Redemption of preferred stock (in shares) | (6,900,000) | |||||
Redemption of preferred stock | (172,500) | $ (69) | (172,431) | |||
Exchange of the Notes for common stock (in shares) | 1,967,361 | |||||
Exchange of Notes for common stock | 33,778 | $ 20 | 33,758 | |||
Offering costs | (333) | (333) | ||||
Net income | 230,174 | 230,174 | ||||
Dividends declared on preferred stock | (18,525) | (18,525) | ||||
Dividends declared on common stock - $1.84 per share | (278,424) | (278,424) | ||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 6,770,393 | 153,537,296 | ||||
Stockholders' equity, ending balance at Dec. 31, 2019 | $ 2,629,975 | $ 68 | $ 1,535 | $ 2,825,317 | $ (196,945) | $ 0 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared on common stock (in dollars per share) | $ 1.84 | $ 1.84 | $ 1.84 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows (used in) provided by operating activities: | |||
Net income | $ 230,174 | $ 219,986 | $ 193,031 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of discount/premium and PIK | (81,611) | (64,269) | (48,062) |
Amortization of deferred financing costs | 11,969 | 11,186 | 6,669 |
Equity-based compensation | 15,897 | 8,809 | 10,977 |
Unrealized loss on securities | 0 | 0 | (37,165) |
Provision for loan losses and impairment, net of reversals | 20,000 | 20,000 | 5,000 |
Loss from unconsolidated joint venture | 0 | 0 | 2,259 |
Foreign currency (gain) loss | 3,768 | 29,617 | (18,645) |
Realized loss on derivative instruments | 0 | 0 | 289 |
Unrealized (gain) loss on derivative instruments | 43,046 | (29,345) | 11,523 |
Loss on early extinguishment of debt | 0 | 2,573 | 0 |
Realized loss on investment | 12,513 | 0 | 42,693 |
Changes in operating assets and liabilities: | |||
Proceeds received from PIK | 16,469 | 75,652 | 0 |
Other assets | (4,926) | (10,198) | (5,192) |
Loan proceeds held by servicer | 454 | 0 | (6,306) |
Accounts payable, accrued expenses and other liabilities | 5,056 | 317 | (3,351) |
Payable to related party | 626 | 1,636 | 1,153 |
Net cash provided by operating activities | 273,435 | 265,964 | 154,873 |
Cash flows used in investing activities: | |||
New funding of commercial mortgage loans | (2,526,384) | (1,849,100) | (1,136,252) |
Add-on funding of commercial mortgage loans | (385,508) | (131,718) | (82,240) |
New funding of subordinate loans and other lending assets | (493,017) | (220,809) | (497,629) |
Add-on funding of subordinate loans and other lending assets | (30,549) | (149,238) | (112,637) |
Proceeds and payments received on commercial mortgage loans | 1,428,535 | 675,140 | 218,002 |
Proceeds and payments received on subordinate loans and other lending assets, net | 560,089 | 610,051 | 376,727 |
Origination and exit fees received on commercial mortgage and subordinate loans and other lending assets, net | 45,882 | 41,822 | 27,904 |
Funding of unconsolidated joint venture | 0 | 0 | (726) |
Funding of other assets | 0 | 0 | (1,379) |
Payments on settlements of derivative instruments | 0 | 0 | (201) |
Increase (decrease) in collateral related to derivative contracts | (34,160) | 24,930 | (4,952) |
Payments and proceeds received on securities | 0 | 0 | 468,171 |
Proceeds from sale of investments in unconsolidated joint venture | 0 | 0 | 24,498 |
Net cash used in investing activities | (1,435,112) | (998,922) | (720,714) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 315,158 | 275,879 | 279,816 |
Redemption of preferred stock | (172,500) | 0 | (116,990) |
Payment of offering costs | (333) | (484) | (924) |
Proceeds from secured debt arrangements | 3,451,172 | 2,153,846 | 1,239,515 |
Repayments of secured debt arrangements | (2,273,750) | (1,580,343) | (1,045,614) |
Repayments of senior secured term loan principal | (2,500) | 0 | 0 |
Proceeds from issuance of senior secured term loan | 497,500 | 0 | 0 |
Proceeds from issuance of Notes | 0 | 226,550 | 343,275 |
Exchanges and conversions of Notes | (704) | (40,461) | 0 |
Repayments of participations sold | 0 | 0 | (85,081) |
Payment of deferred financing costs | (13,688) | (15,337) | (14,254) |
Other financing activities | (4,996) | 0 | 0 |
Dividends on common stock | (269,232) | (227,217) | (183,877) |
Dividends on preferred stock | (21,974) | (27,340) | (35,807) |
Net cash provided by financing activities | 1,504,153 | 765,093 | 380,059 |
Net increase (decrease) in cash and cash equivalents | 342,476 | 32,135 | (185,782) |
Cash and cash equivalents, beginning of period | 109,806 | 77,671 | 263,453 |
Cash and cash equivalents, end of period | 452,282 | 109,806 | 77,671 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 133,469 | 97,880 | 55,835 |
Supplemental disclosure of non-cash financing activities: | |||
Exchange of Notes for common stock | 33,778 | 180,016 | 0 |
Dividend declared, not yet paid | 74,771 | 69,033 | 56,576 |
Loan proceeds held by servicer | 7,775 | 1,000 | 302,756 |
Deferred financing costs, not yet paid | $ 5,193 | $ 0 | $ 0 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
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, Inc. (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, 2019 | |
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 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. We currently operate in one reporting segment. Classification of Investments and Valuations of Financial Instruments Our investments consist primarily of commercial mortgage loans, subordinate loans, and other lending assets that are classified as held-to-maturity. Prior to 2018, we invested in CMBS which were classified as available-for-sale and recorded at fair value. 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. 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 flows 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. A loan is considered impaired 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 underlying collateral and other provisions such as guarantees. Fair Value Election Securities at estimated fair value consisted 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 where we elect the fair market value option 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. Investments in unconsolidated joint venture Investments are accounted for under the equity method when (i) requirements for consolidation are not met, and (ii) 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 our lending assets 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. Loans that have been assigned a risk rating of 4 or 5, discussed in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net," may be placed on non-accrual. When a loan is placed on non-accrual, interest is only recorded as interest income when it's received. Under certain circumstances, we may apply cost recovery under which interest collected on a loan is a reduction to its amortized cost. The cost recovery method will no longer apply if collection of all principal and interest is reasonably assured. 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, 2019 and 2018 , we had $24.5 million and $17.6 million of capitalized financing costs, respectively, net of amortization, included as a direct deduction from the carrying amount of our debt. 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. Since 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 years ended December 31, 2019 and 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, at the time of entering into the hedge, between the applicable local base rate of our foreign currency investments and the comparable rate in the U.S. 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. 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. Senior Secured Term Loan We include our senior secured term loan in our consolidated balance sheet as a liability, net of deferred financing costs. Discount or transaction expenses are deferred and amortized through the maturity. Interest paid in accordance with our senior secured term loan is recorded in interest expense net of our interest rate swap. 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 is measured at its fair value at the grant date, and amortized into expense over the vesting period on a straight-line basis. 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 2016 through 2019. 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 4 – Commercial Mortgage, Subordinate Loans and Other Lending Assets, 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 June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13") and in April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" ("ASU 2019-04"), collectively the "CECL Standard". These updates change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaces the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost. The CECL Standard requires entities to record allowances for held-to-maturity and available-for-sale debt securities that is deducted from the carrying amount of the assets to present the net carrying value at the amounts expected to be collected on the assets. We will continue to record loan specific reserves consistent with our existing accounting policy ("Loan Specific Reserve"). In addition, we will now record a general reserve in accordance with the CECL Standard on the remainder of the loan portfolio (“General CECL Reserve"). The CECL Standard 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; as such, we will adopt CECL as of January 1, 2020. At adoption, on January 1, 2020, we expect the General CECL Reserve to be approximately $31.0 million , which equates to 0.50% of $6.2 billion carrying value of our loan portfolio. This excludes two loans that previously had an aggregate of $60 million of Loan Specific Reserves and carrying value of $136.3 million as of December 31, 2019 . 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 adopted ASU 2018-07 in the first quarter of 2019 and it did not have any impact on our consolidated financial statements. Reclassification To conform to the 2019 presentation of the consolidated income statement, we reclassified $14.6 million of interest income from securities, from 2017, into interest income from subordinate loans and other lending assets, which included $4.1 million from CMBS (Held-to-Maturity) and $10.5 million from CMBS (Fair Value Option). These reclassifications had no impact on our consolidated statement of operations. |
Fair Value Disclosure
Fair Value Disclosure | 12 Months Ended |
Dec. 31, 2019 | |
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 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. The fair value of the interest rate swap is determined by comparing the present value of remaining fixed payments to the present value of expected floating rate payments based on the forward one-month LIBOR curve. 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, 2019 and 2018 ($ in thousands): Fair Value as of December 31, 2019 Fair Value as of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Derivative assets (liabilities), net $ — $ (4,876 ) $ — $ (4,876 ) $ — $ 23,700 $ — $ 23,700 Interest rate swap liability — (14,470 ) — (14,470 ) — — — — Total $ — $ (19,346 ) $ — $ (19,346 ) $ — $ 23,700 $ — $ 23,700 |
Commercial Mortgage, Subordinat
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net | Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net Our loan portfolio was comprised of the following at December 31, 2019 and 2018 ($ in thousands): Loan Type December 31, 2019 December 31, 2018 Commercial mortgage loans, net $ 5,326,967 $ 3,878,981 Subordinate loans and other lending assets, net 1,048,126 1,048,612 Total loans, net $ 6,375,093 $ 4,927,593 Our loan portfolio consisted of 95% and 91% floating rate loans, based on amortized cost, as of December 31, 2019 and 2018 , respectively. Activity relating to our loan investment portfolio, for the year ended December 31, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 3,019,401 — — 3,019,401 Add-on loan fundings (3) 416,056 — — 416,056 Loan repayments (2,037,322 ) — — (2,037,322 ) Gain (loss) on foreign currency translation 44,338 (689 ) — 43,649 Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (46,275 ) — (46,275 ) PIK interest, amortization of fees and other items 55,368 29,136 — 84,504 December 31, 2019 $ 6,467,842 $ (35,768 ) $ (56,981 ) $ 6,375,093 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH. (2) In addition to the $57.0 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. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Number of loans 72 69 Principal balance $ 6,467,842 $ 4,982,514 Carrying value $ 6,375,093 $ 4,927,593 Unfunded loan commitments (1) $ 1,952,887 $ 1,095,598 Weighted-average cash coupon (2) 6.5 % 8.4 % Weighted-average remaining term (3) 3.3 years 2.8 years Weighted-average expected maturity (4) 1.8 years 1.9 years ——————— (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. (3) Assumes all extension options are exercised. (4) Expected maturity represents our estimated timing of repayments as of December 31, 2019. Property Type The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,660,162 26.0 % $ 1,286,590 26.1 % Office 1,401,400 22.0 % 832,620 16.9 % Residential-for-sale: construction 692,816 10.9 % 528,510 10.7 % Residential-for-sale: inventory 321,673 5.1 % 577,053 11.7 % Urban Retail 643,706 10.1 % — — % Urban Predevelopment 409,864 6.4 % 683,886 13.9 % Healthcare 371,423 5.8 % 156,814 3.2 % Other 874,049 13.7 % 862,120 17.5 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,793,570 28.1 % $ 1,669,145 33.9 % Brooklyn, NY 373,917 5.9 % 346,056 7.0 % Northeast 110,771 1.7 % 23,479 0.5 % West 728,182 11.4 % 614,160 12.5 % Midwest 614,337 9.6 % 631,710 12.8 % Southeast 564,166 8.9 % 559,043 11.3 % United Kingdom 1,274,390 20.0 % 700,460 14.2 % Other 915,760 14.4 % 383,540 7.8 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % Risk Rating 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 an impairment has been recorded 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, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 8 348,324 5 % 3 138,040 3 % 3 61 5,707,555 90 % 63 4,573,930 93 % 4 1 182,910 3 % — — — % 5 2 136,304 2 % 3 215,623 4 % 72 $ 6,375,093 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 Provision for Loan Losses and Impairment 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 and/or substantial modification, under ASC 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, OH, with a principal balance of $171.2 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity in which we own an interest and which 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 loan loss provision of $15.0 million and due to factors including continued weakness in the retail sector, we recorded an additional $32.0 million loan loss provision during the third quarter of 2019, bringing the total provision for loan loss to $47.0 million . The carrying value, as a result of the provision, of the loan was $124.6 million and $156.1 million as of December 31, 2019 and 2018, respectively. 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 input used in determining the collateral value was the capitalization rate which was 7.75% and 6.75% as of December 31, 2019 and 2018, respectively. Effective September 30, 2019, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis (all proceeds are applied towards the carrying value of the loan for accounting purposes). During the year ended December 31, 2019, $1.4 million of interest paid was applied towards reducing the carrying value of the loan to $124.6 million at December 31, 2019. As of December 31, 2019 and 2018, this loan was assigned a risk rating of 5. We recorded an aggregate $13.0 million loan loss provision and impairment against a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. Each of the loan loss provisions were due to factors including slower than expected sales pace of the underlying condominium units and were comprised of (i) $3.0 million loan loss recorded during the third quarter of 2019, (ii) $5.0 million loan loss recorded during the second quarter of 2018, and (iii) $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. After the loan loss provisions and related impairment, the amortized cost balance of the loan was $11.7 million and $27.2 million as of December 31, 2019 and 2018, respectively. 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 $573 and $662 per square foot across properties and 10% and 15% as of December 31, 2019 and 2018, respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis. As of December 31, 2019 and 2018, 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. We ceased accruing interest associated with the loan and only recognized interest income upon receipt of cash. As of December 31, 2018, the amortized cost of the loan, net of the loan loss provision, was $32.4 million and was assigned a risk rating of 5. During the second quarter of 2019, the remaining underlying collateral was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. As of December 31, 2019 and 2018, the aggregate loan loss provision was $57.0 million and $37.0 million for commercial mortgage loans and subordinate loans, respectively. Non-Accrual On December 31, 2019, the borrower of a $180 million first mortgage predevelopment loan secured by properties in Miami, Florida, ceased paying interest. As of December 1, 2019, we transferred this loan to non-accrual status and will recognize income on a cash basis. The loan was evaluated for potential impairment and we determined that the loan is not impaired. As of December 31, 2019, and 2018 the loan had carrying value of $182.9 million and $222.0 million and was assigned a risk rating of 4 and 3, respectively. The underlying properties are being marketed for sale. Other Loan and Lending Assets Activity During the year ended December 31, 2019, we sold a $30.3 million and a $122.3 million (both fully funded at close) subordinate position of our $470.8 million loans for an urban retail property in New York, NY. As of December 31, 2019, our exposure to the property is limited to a $318.1 million mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualified as a sale and was accounted for as such. 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, WA. As of December 31, 2019 , our exposure to the property is limited to a $190.0 million ( $128.0 million funded) mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualified as a sale and was accounted for as such. During the years ended December 31, 2019 , 2018 and 2017 , we recognized PIK interest of $54.6 million , $43.5 million and $25.2 million , respectively. During the years ended December 31, 2019 , 2018 and 2017 , we collected PIK of $16.5 million , $75.7 million , and $0.0 million , respectively. During the years ended December 31, 2019 , 2018 and 2017 , we recognized pre-payment penalties and accelerated fees of $6.1 million , $2.3 million and $5.4 million , respectively. We previously held CMBS where we elected the fair value option, which were all sold in 2017 resulting in a net realized loss of $5.5 million. Our portfolio includes two other lending assets, which are subordinate risk retention interests in securitization vehicles. The underlying mortgages related to our subordinate risk retention interests are secured by a portfolio of properties located throughout the United States. Our maximum exposure to loss from the subordinate risk retention interests is limited to the book value of such interests of $68.3 million as of December 31, 2019 . These interests have a weighted average fully-extended maturity of 6.81 years . We are not obligated to provide, and do not intend to provide financial support to these subordinate risk retention interests. Both interests are accounted for as held-to-maturity and recorded at amortized cost on the consolidated balance sheet. We did not hold any collateral securing our subordinate risk retention interests as of December 31, 2018. 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 $8.3 million and $1.0 million as of December 31, 2019 and 2018 , respectively. |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loan Proceeds Held by Servicer | Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net Our loan portfolio was comprised of the following at December 31, 2019 and 2018 ($ in thousands): Loan Type December 31, 2019 December 31, 2018 Commercial mortgage loans, net $ 5,326,967 $ 3,878,981 Subordinate loans and other lending assets, net 1,048,126 1,048,612 Total loans, net $ 6,375,093 $ 4,927,593 Our loan portfolio consisted of 95% and 91% floating rate loans, based on amortized cost, as of December 31, 2019 and 2018 , respectively. Activity relating to our loan investment portfolio, for the year ended December 31, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 3,019,401 — — 3,019,401 Add-on loan fundings (3) 416,056 — — 416,056 Loan repayments (2,037,322 ) — — (2,037,322 ) Gain (loss) on foreign currency translation 44,338 (689 ) — 43,649 Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (46,275 ) — (46,275 ) PIK interest, amortization of fees and other items 55,368 29,136 — 84,504 December 31, 2019 $ 6,467,842 $ (35,768 ) $ (56,981 ) $ 6,375,093 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH. (2) In addition to the $57.0 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. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Number of loans 72 69 Principal balance $ 6,467,842 $ 4,982,514 Carrying value $ 6,375,093 $ 4,927,593 Unfunded loan commitments (1) $ 1,952,887 $ 1,095,598 Weighted-average cash coupon (2) 6.5 % 8.4 % Weighted-average remaining term (3) 3.3 years 2.8 years Weighted-average expected maturity (4) 1.8 years 1.9 years ——————— (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. (3) Assumes all extension options are exercised. (4) Expected maturity represents our estimated timing of repayments as of December 31, 2019. Property Type The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,660,162 26.0 % $ 1,286,590 26.1 % Office 1,401,400 22.0 % 832,620 16.9 % Residential-for-sale: construction 692,816 10.9 % 528,510 10.7 % Residential-for-sale: inventory 321,673 5.1 % 577,053 11.7 % Urban Retail 643,706 10.1 % — — % Urban Predevelopment 409,864 6.4 % 683,886 13.9 % Healthcare 371,423 5.8 % 156,814 3.2 % Other 874,049 13.7 % 862,120 17.5 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,793,570 28.1 % $ 1,669,145 33.9 % Brooklyn, NY 373,917 5.9 % 346,056 7.0 % Northeast 110,771 1.7 % 23,479 0.5 % West 728,182 11.4 % 614,160 12.5 % Midwest 614,337 9.6 % 631,710 12.8 % Southeast 564,166 8.9 % 559,043 11.3 % United Kingdom 1,274,390 20.0 % 700,460 14.2 % Other 915,760 14.4 % 383,540 7.8 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % Risk Rating 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 an impairment has been recorded 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, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 8 348,324 5 % 3 138,040 3 % 3 61 5,707,555 90 % 63 4,573,930 93 % 4 1 182,910 3 % — — — % 5 2 136,304 2 % 3 215,623 4 % 72 $ 6,375,093 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 Provision for Loan Losses and Impairment 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 and/or substantial modification, under ASC 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, OH, with a principal balance of $171.2 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity in which we own an interest and which 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 loan loss provision of $15.0 million and due to factors including continued weakness in the retail sector, we recorded an additional $32.0 million loan loss provision during the third quarter of 2019, bringing the total provision for loan loss to $47.0 million . The carrying value, as a result of the provision, of the loan was $124.6 million and $156.1 million as of December 31, 2019 and 2018, respectively. 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 input used in determining the collateral value was the capitalization rate which was 7.75% and 6.75% as of December 31, 2019 and 2018, respectively. Effective September 30, 2019, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis (all proceeds are applied towards the carrying value of the loan for accounting purposes). During the year ended December 31, 2019, $1.4 million of interest paid was applied towards reducing the carrying value of the loan to $124.6 million at December 31, 2019. As of December 31, 2019 and 2018, this loan was assigned a risk rating of 5. We recorded an aggregate $13.0 million loan loss provision and impairment against a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. Each of the loan loss provisions were due to factors including slower than expected sales pace of the underlying condominium units and were comprised of (i) $3.0 million loan loss recorded during the third quarter of 2019, (ii) $5.0 million loan loss recorded during the second quarter of 2018, and (iii) $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. After the loan loss provisions and related impairment, the amortized cost balance of the loan was $11.7 million and $27.2 million as of December 31, 2019 and 2018, respectively. 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 $573 and $662 per square foot across properties and 10% and 15% as of December 31, 2019 and 2018, respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis. As of December 31, 2019 and 2018, 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. We ceased accruing interest associated with the loan and only recognized interest income upon receipt of cash. As of December 31, 2018, the amortized cost of the loan, net of the loan loss provision, was $32.4 million and was assigned a risk rating of 5. During the second quarter of 2019, the remaining underlying collateral was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. As of December 31, 2019 and 2018, the aggregate loan loss provision was $57.0 million and $37.0 million for commercial mortgage loans and subordinate loans, respectively. Non-Accrual On December 31, 2019, the borrower of a $180 million first mortgage predevelopment loan secured by properties in Miami, Florida, ceased paying interest. As of December 1, 2019, we transferred this loan to non-accrual status and will recognize income on a cash basis. The loan was evaluated for potential impairment and we determined that the loan is not impaired. As of December 31, 2019, and 2018 the loan had carrying value of $182.9 million and $222.0 million and was assigned a risk rating of 4 and 3, respectively. The underlying properties are being marketed for sale. Other Loan and Lending Assets Activity During the year ended December 31, 2019, we sold a $30.3 million and a $122.3 million (both fully funded at close) subordinate position of our $470.8 million loans for an urban retail property in New York, NY. As of December 31, 2019, our exposure to the property is limited to a $318.1 million mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualified as a sale and was accounted for as such. 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, WA. As of December 31, 2019 , our exposure to the property is limited to a $190.0 million ( $128.0 million funded) mortgage loan. This transaction was evaluated under ASC 860 - Transfers and Servicing and we determined that it qualified as a sale and was accounted for as such. During the years ended December 31, 2019 , 2018 and 2017 , we recognized PIK interest of $54.6 million , $43.5 million and $25.2 million , respectively. During the years ended December 31, 2019 , 2018 and 2017 , we collected PIK of $16.5 million , $75.7 million , and $0.0 million , respectively. During the years ended December 31, 2019 , 2018 and 2017 , we recognized pre-payment penalties and accelerated fees of $6.1 million , $2.3 million and $5.4 million , respectively. We previously held CMBS where we elected the fair value option, which were all sold in 2017 resulting in a net realized loss of $5.5 million. Our portfolio includes two other lending assets, which are subordinate risk retention interests in securitization vehicles. The underlying mortgages related to our subordinate risk retention interests are secured by a portfolio of properties located throughout the United States. Our maximum exposure to loss from the subordinate risk retention interests is limited to the book value of such interests of $68.3 million as of December 31, 2019 . These interests have a weighted average fully-extended maturity of 6.81 years . We are not obligated to provide, and do not intend to provide financial support to these subordinate risk retention interests. Both interests are accounted for as held-to-maturity and recorded at amortized cost on the consolidated balance sheet. We did not hold any collateral securing our subordinate risk retention interests as of December 31, 2018. 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 $8.3 million and $1.0 million as of December 31, 2019 and 2018 , respectively. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table details the components of our other assets at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Interest receivable $ 35,581 $ 33,399 Collateral deposited under derivative agreements 17,090 — Other 45 321 Total $ 52,716 $ 33,720 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Secured Debt Arrangements, Net | Secured Debt Arrangements, Net At December 31, 2019 and 2018 , our borrowings had the following secured debt arrangements, maturities and weighted- average interest rates ($ in thousands): December 31, 2019 (2) December 31, 2018 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,154,109 $ 1,090,160 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 51,702 50,410 June 2024 48,497 48,497 June 2021 JPMorgan Facility (EUR) 94,189 94,189 June 2024 N/A N/A N/A DB Repurchase Facility (USD) 1,250,000 513,876 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) N/A N/A N/A 150,819 150,819 March 2021 Goldman Facility (USD) 500,000 322,170 November 2021 300,000 210,072 November 2020 CS Facility - USD 226,068 218,644 June 2020 187,117 187,117 June 2019 CS Facility - GBP 93,915 93,915 June 2020 151,773 151,773 June 2019 HSBC Facility - USD 50,625 50,625 October 2020 N/A N/A N/A HSBC Facility - GBP 34,634 34,634 June 2020 48,835 48,835 December 2019 HSBC Facility - EUR 154,037 154,037 January 2021 N/A N/A N/A Barclays Facility (GBP) 538,916 290,347 February 2024 N/A N/A N/A Barclays Facility (EUR) 182,549 182,549 November 2020 N/A N/A N/A Sub-total 4,330,744 3,095,556 3,124,725 1,897,077 less: deferred financing costs N/A (17,190 ) N/A (17,555 ) Total / Weighted-Average $ 4,330,744 $ 3,078,366 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rate as of December 31, 2019 was USD L + 2.07% / GBP L + 1.75% / EUR L + 1.36% . JPMorgan Facility In November 2019, through three indirect wholly-owned subsidiaries, we entered into a Sixth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association. The JPMorgan Facility allows for $1.3 billion of maximum borrowings (with amounts borrowed in British pounds and Euros converted to U.S. dollars for purposes of calculating availability based on the greater of the spot rate as of the initial financing under the corresponding mortgage loan and the then-current spot rate) and matures in June 2022, plus two one -year extensions available, which are subject to the approval of JPMorgan and certain other conditions. The JPMorgan Facility enables us to elect to receive advances in U.S. Dollars, British pounds, or Euros. 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, 2019 , we had $1.2 billion (including £38.0 million and €84.0 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 2019, and provides for advances of up to $1.25 billion , and enables us to elect to receive advances in U.S. dollars, British pounds, or Euros. The repurchase facility matures in March 2020, plus a one -year extension available at our option, subject to certain conditions. 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, 2019 , we had $513.9 million 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 was upsized in March 2019 from $300.0 million to $500.0 million and matures in November 2020, 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 our indirect wholly-owned subsidiaries under this facility. As of December 31, 2019 , we had $322.2 million of borrowings outstanding under the Goldman Facility secured by certain of our commercial mortgage loans. 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 in June 2020 (or, if earlier, six months after Credit Suisse AG notifies us of their 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 subsidiary under this facility. As of December 31, 2019 , we had $218.6 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 subsidiary under this facility. As of December 31, 2019 , we had $93.9 million ( £70.8 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 - USD In October 2019, 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 is initially scheduled to mature in October 2020 and unless terminated by either party, automatically extends for further periods prior to maturity. Margin calls may occur any time at specified aggregate margin thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of December 31, 2019 , we had $50.6 million of borrowings under the HSBC Facility - USD secured by one of our commercial mortgage loans. HSBC Facility - GBP 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, which was extended in December 2019, is scheduled to mature in June 2020 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 subsidiary under this facility. As of December 31, 2019 , we had $34.6 million ( £26.1 million assuming conversion into U.S. dollars) of borrowings outstanding under the HSBC Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - EUR In July 2019, 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 January 2021 . 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 subsidiary under this facility. As of December 31, 2019 , we had $154.0 million ( €137.4 million assuming conversion into U.S. dollars) of borrowings outstanding under the HSBC Facility - EUR secured by one of our commercial mortgage loans. Barclays Facility Beginning in October 2019, through an indirect wholly-owned subsidiary, we entered into three secured debt arrangements pursuant to a Global Master Repurchase Agreement with Barclays Bank plc, which provide for single asset financing. The financings mature in November 2020, March 2022, and October 2022 with extension options to match the duration of the corresponding mortgage loans, subject to certain conditions. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of December 31, 2019 , we had $472.9 million ( £219.0 million and €162.8 million assuming conversion into U.S. dollars) of borrowings outstanding under the Barclays Facility secured by three of our commercial mortgage loans. At December 31, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 143,841 $ 251,002 $ 839,916 $ — $ 1,234,759 DB Repurchase Facility 32,400 481,476 — — 513,876 Goldman Facility — 322,170 — — 322,170 CS Facility - USD 218,644 — — — 218,644 CS Facility - GBP 93,915 — — — 93,915 HSBC Facility - USD 50,625 — — — 50,625 HSBC Facility - GBP 34,634 — — — 34,634 HSBC Facility - EUR — 154,037 — — 154,037 Barclays Facility (GBP) — — 290,347 — 290,347 Barclays Facility (EUR) 182,549 — — — 182,549 Total $ 756,608 $ 1,208,685 $ 1,130,263 $ — $ 3,095,556 ——————— (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, 2019 , as well as the maximum and average month-end balances for the year ended December 31, 2019 for our borrowings under secured debt arrangements ($ in thousands). For the year ended December 31, 2019 Balance at December 31, 2019 Amortized Cost of collateral at December 31, 2019 Maximum Month-End Average Month-End JPMorgan Facility $ 1,234,759 $ 1,845,400 $ 1,234,759 $ 947,400 DB Repurchase Facility 513,876 766,676 757,117 604,067 Goldman Facility 322,170 513,559 324,821 246,318 CS Facility - USD 218,644 308,884 218,644 182,646 CS Facility - GBP 93,915 129,723 150,811 134,694 HSBC Facility - USD 50,625 66,960 50,625 50,625 HSBC Facility - GBP 34,634 49,976 50,784 42,296 HSBC Facility - EUR 154,037 190,780 154,037 151,889 Barclays Facility (GBP) 290,347 738,455 290,347 139,004 Barclays Facility (EUR) 182,549 241,674 182,549 181,159 Total $ 3,095,556 $ 4,852,087 We were in compliance with the covenants under each of our secured debt arrangements at December 31, 2019 and 2018. In May 2019, we entered into a $500.0 million senior secured term loan. The senior secured term loan bears interest at LIBOR plus 2.75% and was issued at a price of 99.5% . The senior secured term loan matures in May 2026 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. For the year ended December 31, 2019 , we repaid $2.5 million of principal related to the senior secured term loan. The outstanding principal balance as of December 31, 2019 was $497.5 million . As of December 31, 2019 , the senior secured term loan had a carrying value of $488.0 million net of deferred financing costs of $7.3 million and an unamortized discount of $2.2 million . Covenants The senior secured term loan includes the following financial covenants: (i) our ratio of total recourse debt to tangible net worth cannot be greater than 3 :1; and (ii) our ratio of total unencumbered assets to total pari-passu indebtedness must be at least 1.25 :1. We were in compliance with the covenants under the senior secured term loan at December 31, 2019 . Interest Rate Swap In connection with the senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% effectively fixing our all-in coupon on the senior secured term loan at 4.87% |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 12 Months Ended |
Dec. 31, 2019 | |
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 $248.6 million , after deducting the underwriting discount offering expenses. The 2019 Notes were exchanged or converted for shares of our common stock and cash 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 $47.9 million of the 2019 Notes, which were settled for an aggregate of (a) 2,775,509 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. These conversions occurred from August 2018 through maturity. The remaining $0.7 million in principal amount of the 2019 Notes were repaid at maturity on March 15, 2019. 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 year ended December 31, 2019 and 2017. In two separate offerings during 2017, we issued an aggregate principal amount of $345.0 million of the 2022 Notes, for which we received $337.5 million , after deducting the underwriting discount and offering expenses. At December 31, 2019, the 2022 Notes had a carrying value of $337.8 million and an unamortized discount of $7.2 million . During the fourth quarter of 2018, we issued an aggregate principal amount of $230.0 million of 2023 Notes, for which we received $223.7 million , after deducting the underwriting discount and offering expenses. At December 31, 2019 , the 2023 Notes had a carrying value of $223.8 million and an unamortized discount of $6.2 million . The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2022 Notes $ 345,000 4.75 % 5.60 % 50.2260 8/23/2022 2.65 years 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 3.79 years Total $ 575,000 ——————— (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, 2019 of $18.29 was less than the per share conversion price of the Notes. 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 $15.4 million of the proceeds to the equity component of the 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, 2019 . 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. The aggregate contractual interest expense was approximately $29.1 million, $28.2 million and $18.7 million for the years ended December 31, 2019 , 2018 and 2017 , 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 $6.0 million , $7.1 million , and $4.7 million for the years ended December 31, 2019 , 2018 and 2017 |
Senior Secured Term Loan, Net
Senior Secured Term Loan, Net | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Senior Secured Term Loan, Net | Secured Debt Arrangements, Net At December 31, 2019 and 2018 , our borrowings had the following secured debt arrangements, maturities and weighted- average interest rates ($ in thousands): December 31, 2019 (2) December 31, 2018 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,154,109 $ 1,090,160 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 51,702 50,410 June 2024 48,497 48,497 June 2021 JPMorgan Facility (EUR) 94,189 94,189 June 2024 N/A N/A N/A DB Repurchase Facility (USD) 1,250,000 513,876 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) N/A N/A N/A 150,819 150,819 March 2021 Goldman Facility (USD) 500,000 322,170 November 2021 300,000 210,072 November 2020 CS Facility - USD 226,068 218,644 June 2020 187,117 187,117 June 2019 CS Facility - GBP 93,915 93,915 June 2020 151,773 151,773 June 2019 HSBC Facility - USD 50,625 50,625 October 2020 N/A N/A N/A HSBC Facility - GBP 34,634 34,634 June 2020 48,835 48,835 December 2019 HSBC Facility - EUR 154,037 154,037 January 2021 N/A N/A N/A Barclays Facility (GBP) 538,916 290,347 February 2024 N/A N/A N/A Barclays Facility (EUR) 182,549 182,549 November 2020 N/A N/A N/A Sub-total 4,330,744 3,095,556 3,124,725 1,897,077 less: deferred financing costs N/A (17,190 ) N/A (17,555 ) Total / Weighted-Average $ 4,330,744 $ 3,078,366 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rate as of December 31, 2019 was USD L + 2.07% / GBP L + 1.75% / EUR L + 1.36% . JPMorgan Facility In November 2019, through three indirect wholly-owned subsidiaries, we entered into a Sixth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association. The JPMorgan Facility allows for $1.3 billion of maximum borrowings (with amounts borrowed in British pounds and Euros converted to U.S. dollars for purposes of calculating availability based on the greater of the spot rate as of the initial financing under the corresponding mortgage loan and the then-current spot rate) and matures in June 2022, plus two one -year extensions available, which are subject to the approval of JPMorgan and certain other conditions. The JPMorgan Facility enables us to elect to receive advances in U.S. Dollars, British pounds, or Euros. 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, 2019 , we had $1.2 billion (including £38.0 million and €84.0 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 2019, and provides for advances of up to $1.25 billion , and enables us to elect to receive advances in U.S. dollars, British pounds, or Euros. The repurchase facility matures in March 2020, plus a one -year extension available at our option, subject to certain conditions. 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, 2019 , we had $513.9 million 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 was upsized in March 2019 from $300.0 million to $500.0 million and matures in November 2020, 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 our indirect wholly-owned subsidiaries under this facility. As of December 31, 2019 , we had $322.2 million of borrowings outstanding under the Goldman Facility secured by certain of our commercial mortgage loans. 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 in June 2020 (or, if earlier, six months after Credit Suisse AG notifies us of their 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 subsidiary under this facility. As of December 31, 2019 , we had $218.6 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 subsidiary under this facility. As of December 31, 2019 , we had $93.9 million ( £70.8 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 - USD In October 2019, 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 is initially scheduled to mature in October 2020 and unless terminated by either party, automatically extends for further periods prior to maturity. Margin calls may occur any time at specified aggregate margin thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of December 31, 2019 , we had $50.6 million of borrowings under the HSBC Facility - USD secured by one of our commercial mortgage loans. HSBC Facility - GBP 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, which was extended in December 2019, is scheduled to mature in June 2020 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 subsidiary under this facility. As of December 31, 2019 , we had $34.6 million ( £26.1 million assuming conversion into U.S. dollars) of borrowings outstanding under the HSBC Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - EUR In July 2019, 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 January 2021 . 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 subsidiary under this facility. As of December 31, 2019 , we had $154.0 million ( €137.4 million assuming conversion into U.S. dollars) of borrowings outstanding under the HSBC Facility - EUR secured by one of our commercial mortgage loans. Barclays Facility Beginning in October 2019, through an indirect wholly-owned subsidiary, we entered into three secured debt arrangements pursuant to a Global Master Repurchase Agreement with Barclays Bank plc, which provide for single asset financing. The financings mature in November 2020, March 2022, and October 2022 with extension options to match the duration of the corresponding mortgage loans, subject to certain conditions. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of December 31, 2019 , we had $472.9 million ( £219.0 million and €162.8 million assuming conversion into U.S. dollars) of borrowings outstanding under the Barclays Facility secured by three of our commercial mortgage loans. At December 31, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 143,841 $ 251,002 $ 839,916 $ — $ 1,234,759 DB Repurchase Facility 32,400 481,476 — — 513,876 Goldman Facility — 322,170 — — 322,170 CS Facility - USD 218,644 — — — 218,644 CS Facility - GBP 93,915 — — — 93,915 HSBC Facility - USD 50,625 — — — 50,625 HSBC Facility - GBP 34,634 — — — 34,634 HSBC Facility - EUR — 154,037 — — 154,037 Barclays Facility (GBP) — — 290,347 — 290,347 Barclays Facility (EUR) 182,549 — — — 182,549 Total $ 756,608 $ 1,208,685 $ 1,130,263 $ — $ 3,095,556 ——————— (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, 2019 , as well as the maximum and average month-end balances for the year ended December 31, 2019 for our borrowings under secured debt arrangements ($ in thousands). For the year ended December 31, 2019 Balance at December 31, 2019 Amortized Cost of collateral at December 31, 2019 Maximum Month-End Average Month-End JPMorgan Facility $ 1,234,759 $ 1,845,400 $ 1,234,759 $ 947,400 DB Repurchase Facility 513,876 766,676 757,117 604,067 Goldman Facility 322,170 513,559 324,821 246,318 CS Facility - USD 218,644 308,884 218,644 182,646 CS Facility - GBP 93,915 129,723 150,811 134,694 HSBC Facility - USD 50,625 66,960 50,625 50,625 HSBC Facility - GBP 34,634 49,976 50,784 42,296 HSBC Facility - EUR 154,037 190,780 154,037 151,889 Barclays Facility (GBP) 290,347 738,455 290,347 139,004 Barclays Facility (EUR) 182,549 241,674 182,549 181,159 Total $ 3,095,556 $ 4,852,087 We were in compliance with the covenants under each of our secured debt arrangements at December 31, 2019 and 2018. In May 2019, we entered into a $500.0 million senior secured term loan. The senior secured term loan bears interest at LIBOR plus 2.75% and was issued at a price of 99.5% . The senior secured term loan matures in May 2026 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. For the year ended December 31, 2019 , we repaid $2.5 million of principal related to the senior secured term loan. The outstanding principal balance as of December 31, 2019 was $497.5 million . As of December 31, 2019 , the senior secured term loan had a carrying value of $488.0 million net of deferred financing costs of $7.3 million and an unamortized discount of $2.2 million . Covenants The senior secured term loan includes the following financial covenants: (i) our ratio of total recourse debt to tangible net worth cannot be greater than 3 :1; and (ii) our ratio of total unencumbered assets to total pari-passu indebtedness must be at least 1.25 :1. We were in compliance with the covenants under the senior secured term loan at December 31, 2019 . Interest Rate Swap In connection with the senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% effectively fixing our all-in coupon on the senior secured term loan at 4.87% |
Derivatives, Net
Derivatives, Net | 12 Months Ended |
Dec. 31, 2019 | |
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 (GBP and EUR) for an agreed upon amount of U.S. dollars at various dates through December 2024 . 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 forwards and our interest rate swap as of December 31, 2019 : Type of Derivative December 31, 2019 Number of Contracts Aggregate Notional Amount (in Thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 156 735,349 GBP January 2020 - December 2024 1.49 Fx Contracts - EUR 44 168,879 EUR February 2020 - August 2024 3.22 Interest Rate Swap 1 500,000 USD May 2026 6.37 The following table summarizes our non-designated Fx forwards as of December 31, 2018 : Type of Derivative December 31, 2018 Number of Contracts Aggregate Notional Amount (in Thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 0.69 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, 2019 , 2018 and 2017 ($ in thousands): Amount of gain (loss) recognized in income Location of Gain (Loss) Recognized in Income 2019 2018 2017 Forward currency contracts Gain (loss) on derivative instruments - unrealized $ (28,576 ) $ 29,345 $ (11,527 ) Forward currency contracts Gain (loss) on derivative instruments - realized 14,151 9,713 (7,657 ) Interest rate caps (1) Gain on derivative instruments - unrealized — — 4 Sub-total $ (14,425 ) $ 39,058 $ (19,180 ) Forward currency contracts Loss from unconsolidated joint venture — — (587 ) Total $ (14,425 ) $ 39,058 $ (19,767 ) ——————— (1) With a notional amount of $0.0 million , $34.9 million , and $40.2 million at December 31, 2019 , 2018 , and 2017 , respectively. In connection with our senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% or an all-in interest rate of 4.87% . We use our interest rate swap to manage exposure to variable cash flows on our borrowings under our senior secured term loan. Our interest rate swap allows us to receive a variable rate cash flow based on LIBOR and pay a fixed rate cash flow, mitigating the impact of this exposure. Gains or losses related to the interest rate swap are recorded net under interest expense in our consolidated statement of operations. Amount of loss recognized in income Location of Loss Recognized in Income 2019 2018 2017 Interest rate swap (1) Unrealized loss on interest rate swap $ (14,470 ) $ — $ — ——————— (1) With a notional amount of $500.0 million , $0.0 million , and $0.0 million at December 31, 2019 , 2018 , and 2017 , respectively. The following table summarizes the gross asset and liability amounts related to our derivatives at December 31, 2019 and 2018 ($ in thousands). December 31, 2019 December 31, 2018 Gross Amount of Gross Amounts Net Amounts Gross Gross Net Amounts Interest rate swap $ (14,470 ) $ — $ (14,470 ) $ — $ — $ — Forward currency contracts (12,687 ) 7,811 (4,876 ) 23,753 (53 ) 23,700 Total derivative instruments $ (27,157 ) $ 7,811 $ (19,346 ) $ 23,753 $ (53 ) $ 23,700 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Accrued dividends payable $ 74,771 $ 69,033 Accrued interest payable 16,089 14,208 Accounts payable and other liabilities 6,922 1,505 Collateral deposited under derivative agreements 2,930 20,000 Total $ 100,712 $ 104,746 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions 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 will expire on September 29, 2020, 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 2020, 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 2019 , 2018 , and 2017 , we incurred approximately $40.7 million , $36.4 million , and $31.7 million , respectively, 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 2019 , 2018 , and 2017 , we paid expenses totaling $3.6 million , $3.1 million , and $2.6 million , respectively, 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, 2019 and 2018 are approximately $10.4 million and $9.8 million , respectively, for base management fees incurred but not yet paid under the Management Agreement. Unconsolidated Joint Venture In September 2014, we, through a wholly owned subsidiary, acquired a 59% ownership interest in Champ Limited Partnership, a financial services company ("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. We have had no interest in Champ LP since December 2017. 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. In December 2019, we sold $30.3 million and $122.3 million in mezzanine loans secured by an urban retail property to two funds managed by an affiliate of the Manager, that were originated by us in August 2019. This transaction was evaluated under ASC 860 - Transfers and Servicing, and we determined that it qualifies as a sale and accounted for as such (see " Note 4 -Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net"). We recorded no gain or loss related to this sale. Senior Secured Term Loan In May 2019, Apollo Global Funding, LLC, an affiliate of the Manager, served as one of the five arrangers for the issuance of our senior secured term loan and received $0.6 million of arrangement fees. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 and on April 16, 2019, our board of directors approved the Amended and Restated Apollo Commercial Real Estate Finance, Inc. 2019 Equity Incentive Plan, which amended and restated the 2009 LTIP. Following the approval of the 2019 LTIP by our stockholders at our 2019 annual meeting of stockholders on June 12, 2019, no additional awards will be granted under the 2009 LTIP and all outstanding awards granted under the 2009 LTIP remain in effect in accordance with the terms in the 2009 LTIP. The 2019 LTIP provides for grants of restricted common stock, RSUs and other equity-based awards up to an aggregate of 7,000,000 shares of our common stock. The LTIPs are administered by the Compensation Committee of our board of directors and all grants under the LTIPs must be approved by the Compensation Committee. We recognized stock-based compensation expense of $15.9 million , $13.6 million , and $13.3 million during 2019, 2018 and 2017, respectively, related to restricted stock and RSU vesting. We adopted ASU 2018-07 on January 1, 2019 and the stock-based compensation expense for grants before the adoption of ASU 2018-07 is based on the closing price of our common stock of $16.66 on December 31, 2018, which was the last business day before we adopted ASU 2018-07. Refer to " Note 2 - Summary of Significant Accounting Policies" for further discussion on our adoption of ASU 2018-07. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during 2019 , 2018 and 2017 : Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) 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 Grant 27,245 1,069,202 20,483 Vested (67,586 ) (877,261 ) N/A Forfeiture — (37,543 ) N/A Outstanding at December 31,2019 25,356 2,007,355 Below is a summary of restricted stock and RSU vesting dates as of December 31, 2019 : Vesting Year Restricted Stock RSU Total Awards 2020 25,356 964,829 990,185 2021 — 686,126 686,126 2022 — 356,400 356,400 Total 25,356 2,007,355 2,032,711 At December 31, 2019 , we had unrecognized compensation expense of approximately $35.1 million and $0.1 million, respectively, related to the vesting of RSUs and restricted stock awards noted in the table above. RSU Deliveries During 2019 , 2018 and 2017 , we delivered 433,585 , 378,855 and 200,859 shares of common stock, respectively, for 730,980 , 741,210 and 938,541 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 $5.0 million, $4.8 million and $2.3 million in 2019 , 2018 and 2017 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 153,537,296 shares of common stock were issued and outstanding, and 6,770,393 shares of Series B Preferred Stock were issued and outstanding. On June 10, 2019, we redeemed all 6,900,000 shares of Series C Preferred Stock outstanding. Holders of the Series C Preferred Stock received the redemption price of $25.00 plus accumulated but unpaid dividends to the redemption date of $0.2223 per share. In October 2017, we concurrently entered into a common stock purchase agreement and a preferred stock repurchase agreement with QH RE Assets Company, LLC ("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 2019 , 2018 and 2017 , we declared the following dividends: Dividend declared per share of: 2019 2018 2017 Common Stock (1) $1.84 $1.84 $1.84 Series A Preferred Stock (2) N/A N/A 1.19 Series B Preferred Stock 2.00 2.00 2.00 Series C Preferred Stock (3) 0.72 2.00 2.00 ——————— (1) As our aggregate 2019 distributions exceeded our earnings and profits, $0.46 of the January 2020 distribution declared in the fourth quarter of 2019 are payable to common stockholders of record as of December 31, 2019 will be treated as a 2020 distribution for U.S. federal income tax purposes. (2) The Series A Preferred Stock shares were redeemed in full in August 2017. (3) The Series C Preferred Stock shares were redeemed in full in June 2019. Common Stock Offerings. During the second quarter of 2019, we completed a follow-on public offering of 17,250,000 shares of our common stock, including shares issued pursuant to the underwriters' option to purchase additional shares, at a price of $18.27 per share. The aggregate net proceeds from the offering were $314.8 million after deducting offering expenses. During the first quarter of 2018, we completed a follow-on public offering of 15,525,000 shares of our common stock, including shares issued pursuant to the underwriters' option to purchase additional shares at a price of $17.77 per share. The aggregate net proceeds from the offering were $275.9 million after deducting offering expenses. During the first quarter of 2019, we issued 1,967,361 shares of our common stock, at a per share conversion price of $17.17 , related to conversions of the 2019 Notes, the remainder of which matured on March 15, 2019. We recorded a $33.8 million increase in additional paid in capital in the consolidated statement of changes in stockholders' equity. Refer to " Note 9 - Convertible Senior Notes, Net" for a further discussion on the conversions of the 2019 Notes. During 2018, we issued 10,828,475 shares of our common stock related to exchanges and conversions of the 2019 Notes. Refer to " Note 9 - 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, including shares issued pursuant to the underwriters' option to purchase additional shares, at a price of $18.05 per share. The aggregate net proceeds from the offering were $248.9 million after deducting estimated offering expenses. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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' motion to dismiss was granted on October 23, 2019 and the Court entered judgment dismissing the complaint in its entirety on November 8, 2019. Plaintiffs filed a timely notice of appeal on December 6, 2019 but have not yet filed their appellate brief. We believe the claims are without merit and plan to vigorously defend the case on appeal. We do not believe this will have a material adverse effect on our consolidated financial statements. Loan Commitments. As described in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net," at December 31, 2019 , we had $2.0 billion of unfunded commitments related to our commercial mortgage and subordinate loan portfolios. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the consolidated balance sheet at December 31, 2019 and 2018 ($ in thousands): December 31, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 452,282 $ 452,282 $ 109,806 $ 109,806 Commercial mortgage loans, net 5,326,967 5,380,693 3,878,981 3,894,947 Subordinate loans and other lending assets, net (1) 1,048,126 1,050,961 1,048,612 1,047,854 Secured debt arrangements, net (3,078,366 ) (3,078,366 ) (1,897,077 ) (1,897,077 ) Senior secured term loan, net (487,961 ) (499,988 ) — — 2019 Notes — — (34,278 ) (35,276 ) 2022 Notes (337,755 ) (348,060 ) (335,291 ) (326,025 ) 2023 Notes (223,818 ) (234,600 ) (222,431 ) (221,964 ) ——————— (1) As of December 31, 2019 includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying values. We did not hold any such instruments as of December 31, 2018. 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, convertible senior notes, net and senior secured term loan, 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 per Share
Net Income per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income 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, 2019 , 2018 , and 2017 ($ in thousands except per share data): For the year ended 2019 2018 2017 Basic Earnings Net income $ 230,174 $ 219,986 $ 193,031 Less: Preferred dividends (18,525 ) (27,340 ) (36,761 ) Net income available to common stockholders $ 211,649 $ 192,646 $ 156,270 Less: Dividends on participating securities (3,867 ) (3,405 ) (2,913 ) Basic Earnings $ 207,782 $ 189,241 $ 153,357 Diluted Earnings Net income $ 230,174 $ 219,986 $ 193,031 Less: Preferred dividends (18,525 ) (27,340 ) (36,761 ) Net income available to common stockholders $ 211,649 $ 192,646 $ 156,270 Add: Interest expense on Notes 35,173 34,779 N/A Diluted Earnings $ 246,822 $ 227,425 $ 156,270 Number of Shares: Basic weighted-average shares of common stock outstanding 146,881,231 124,147,073 99,859,153 Diluted weighted-average shares of common stock outstanding 175,794,896 153,821,515 101,232,610 Earnings Per Share Attributable to common stockholders Basic $ 1.41 $ 1.52 $ 1.54 Diluted $ 1.40 $ 1.48 $ 1.54 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 years ended December 31, 2019 and 2018, 28,913,665 and 29,674,442 weighted-average potentially issuable shares with respect to the Notes, respectively, were included in the dilutive earnings per share denominator. Refer to " Note 9 - Convertible Senior Notes, Net" for further discussion. For the years ended December 31, 2019 , 2018 , and 2017 , 1,836,210 , 1,612,676 and 1,373,457 weighted-average unvested RSUs, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. |
Summarized Quarterly Results (U
Summarized Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2019 2018 2019 2018 2019 2018 Net interest income: Interest income from commercial mortgage loans $ 78,286 $ 52,114 $ 77,458 $ 65,141 $ 81,136 $ 71,179 $ 85,595 $ 75,275 Interest income from subordinate loans and other lending assets 40,839 33,853 41,043 34,075 43,421 37,308 39,630 34,944 Interest expense (36,295 ) (22,740 ) (33,511 ) (28,437 ) (39,341 ) (31,007 ) (43,779 ) (32,413 ) Net interest income 82,830 63,227 84,990 70,779 85,216 77,480 81,446 77,806 Operating expenses: General and administrative expenses (6,151 ) (4,998 ) (6,574 ) (5,652 ) (5,839 ) (5,843 ) (5,533 ) (3,977 ) Management fees to related party (9,613 ) (8,092 ) (10,259 ) (9,013 ) (10,434 ) (9,515 ) (10,428 ) (9,804 ) Total operating expenses (15,764 ) (13,090 ) (16,833 ) (14,665 ) (16,273 ) (15,358 ) (15,961 ) (13,781 ) Other income 518 203 484 343 429 427 682 465 Reversal of (provision for) loan losses and impairments — — 15,000 (5,000 ) (35,000 ) — — (15,000 ) Realized loss on investments — — (12,513 ) — — — — — Foreign currency gain (loss) 6,894 10,125 (7,777 ) (29,649 ) (19,129 ) (4,050 ) 39,830 (6,761 ) Loss on early extinguishment of debt — — — — — (2,573 ) — — Gain (loss) on foreign currency forwards (6,720 ) (11,032 ) 11,186 33,538 24,153 6,291 (43,044 ) 10,261 Gain (loss) on interest rate swap — — (13,113 ) — (10,307 ) — 8,950 — Net income $ 67,758 $ 49,433 $ 61,424 $ 55,346 $ 29,089 $ 62,217 $ 71,903 $ 52,990 Preferred dividends (6,835 ) (6,835 ) (4,919 ) (6,834 ) (3,385 ) (6,836 ) (3,386 ) (6,835 ) Net income available to common stockholders $ 60,923 $ 42,598 $ 56,505 $ 48,512 $ 25,704 $ 55,381 $ 68,517 $ 46,155 Net income per share of common stock: Basic $0.45 $0.38 $0.38 $0.39 $0.16 $0.42 $0.44 $0.34 Diluted $0.43 $0.38 $0.37 $0.39 $0.16 $0.40 $0.42 $0.34 Basic weighted-average shares of common stock outstanding 134,607,107 110,211,853 145,567,963 123,019,993 153,531,678 129,188,343 153,537,074 133,852,915 Diluted weighted-average shares of common stock outstanding 164,683,086 111,871,429 174,101,234 124,629,317 153,531,678 153,918,435 182,070,345 163,900,633 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, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment activity . Subsequent to December 31, 2019, we committed capital of $560.9 million ( $438.6 million of which was funded at closing) of first mortgage loans. In addition, we funded approximately $49.2 million for loans closed prior to the quarter. Loan Repayments. S ubsequent to December 31, 2019, we received approximately $191.7 |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Schedule IV — Mortgage Loans on Real Estate As of December 31, 2019 ($ in thousands) Description Number of Loans Property Type/location 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 Retail/United Kingdom 4.96% Dec 2023 Principal and Interest $ 331,425 $ 328,145 — Loan B Urban Retail/Manhattan, NY 4.75% Sep 2024 Interest Only 318,106 315,561 — Loan C Hotel/Spain 3.00% Aug 2024 Interest Only 244,321 241,674 — Loan D Healthcare/United Kingdom 4.56% Oct 2024 Principal and Interest 229,183 226,761 — Loan E Industrial/Brooklyn, NY 5.95% Feb 2024 Interest Only 197,000 195,940 — Commercial mortgage loans individually <3% First Mortgage 46 Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various 0.0% - 9.2% 2020-2026 Principal and Interest / Interest Only 4,102,073 4,018,886 — Total Commercial mortgage loans $ 5,422,108 $ 5,326,967 — Subordinate loans and other lending assets individually >3% Loan F Residential-for-sale: construction/Manhattan, NY 17.22% Feb 2021 Interest Only 206,624 209,582 — Subordinate loans and other lending assets individually <3% Subordinate Mortgage and other lending assets 20 Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various 7.0% - 19.2% 2020-2028 Principal and Interest / Interest Only 839,110 838,544 — Total Subordinate loans and other lending assets (3) $ 1,045,734 $ 1,048,126 — Total loans (4) $ 6,467,842 $ 6,375,093 — ——————— (1) Assumes applicable benchmark rate as of December 31, 2019 for all floating rate loans (2) Assumes all extension options are exercised. (3) Subject to prior liens of approximately $4.3 billion . (4) The aggregate cost for U.S. federal income tax purposes is $6.4 billion . The following table summarizes the changes in the carrying amounts of our loan investment portfolio during 2019 and 2018 ($ in thousands): Year Ended Year Ended Reconciliation of Carrying Amount of Loans December 31, 2019 December 31, 2018 Balance at beginning of year $ 4,927,593 $ 3,679,758 Loan fundings (1) 3,435,457 2,350,865 Loan repayments (2) (2,037,322 ) (1,066,843 ) Gain (loss) on foreign currency translation 43,649 (51,013 ) Realized loss on investment, net of provision for loan loss reversal (3) 2,487 — Provision for loan losses (4) (35,000 ) (20,000 ) Deferred Fees (46,275 ) (34,066 ) PIK interest, amortization of fees and other items (5) 84,504 68,892 Balance at the close of year $ 6,375,093 $ 4,927,593 ——————— (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, 2019, we sold $152.6 million in mezzanine loans secured by an urban retail property to two funds managed by an affiliate of the Manager. (3) During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (4) During the year ended December 31, 2019 , we recorded $35.0 million for provision for loan losses and impairments, comprised of a (i) $32.0 million loan loss provision recorded against a commercial mortgage loan secured by a retail center located in Cincinnati, OH, and (ii) $3.0 million loan loss provision recorded against a commercial mortgage loan secured by a fully-built, for-sale residential condominium units located in Bethesda, MD. During the year ended December 31, 2018, we recorded $20.0 million for provision for loan losses and impairments, comprised of a (i) $15.0 million and (ii) $5.0 million loan loss provision against the same loans as in 2019, respectively. (5) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 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 |
Classification of Loans and Loan Impairment | 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. 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 flows 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. A loan is considered impaired 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 underlying collateral and other provisions such as guarantees. |
Fair Value Election | Fair Value Election |
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 (i) requirements for consolidation are not met, and (ii) 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 our lending assets 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. Loans that have been assigned a risk rating of 4 or 5, discussed in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net," may be placed on non-accrual. When a loan is placed on non-accrual, interest is only recorded as interest income when it's received. Under certain circumstances, we may apply cost recovery under which interest collected on a loan is a reduction to its amortized cost. The cost recovery method will no longer apply if collection of all principal and interest is reasonably assured. |
Deferred Financing Costs | Deferred Financing Costs |
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, at the time of entering into the hedge, between the applicable local base rate of our foreign currency investments and the comparable rate in the U.S. 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. |
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. |
Senior Secured Term Loan | Senior Secured Term Loan |
Share-based Payments | Share-based Payments |
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 2016 through 2019. 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 |
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 June 2016, the FASB issued ASU 2016-13 "Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13") and in April 2019, the FASB issued ASU 2019-04 "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" ("ASU 2019-04"), collectively the "CECL Standard". These updates change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaces the "incurred loss" approach under existing guidance with an "expected loss" model for instruments measured at amortized cost. The CECL Standard requires entities to record allowances for held-to-maturity and available-for-sale debt securities that is deducted from the carrying amount of the assets to present the net carrying value at the amounts expected to be collected on the assets. We will continue to record loan specific reserves consistent with our existing accounting policy ("Loan Specific Reserve"). In addition, we will now record a general reserve in accordance with the CECL Standard on the remainder of the loan portfolio (“General CECL Reserve"). The CECL Standard 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; as such, we will adopt CECL as of January 1, 2020. At adoption, on January 1, 2020, we expect the General CECL Reserve to be approximately $31.0 million , which equates to 0.50% of $6.2 billion carrying value of our loan portfolio. This excludes two loans that previously had an aggregate of $60 million of Loan Specific Reserves and carrying value of $136.3 million as of December 31, 2019 . 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 adopted ASU 2018-07 in the first quarter of 2019 and it did not have any impact on our consolidated financial statements. |
Reclassification | Reclassification To conform to the 2019 presentation of the consolidated income statement, we reclassified $14.6 million of interest income from securities, from 2017, into interest income from subordinate loans and other lending assets, which included $4.1 million from CMBS (Held-to-Maturity) and $10.5 million from CMBS (Fair Value Option). These reclassifications had no impact on our consolidated statement of operations. |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Levels in Fair Value Hierarchy of Financial Instruments | The following table summarizes the levels in the fair value hierarchy into which our financial instruments were categorized as of December 31, 2019 and 2018 ($ in thousands): Fair Value as of December 31, 2019 Fair Value as of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Derivative assets (liabilities), net $ — $ (4,876 ) $ — $ (4,876 ) $ — $ 23,700 $ — $ 23,700 Interest rate swap liability — (14,470 ) — (14,470 ) — — — — Total $ — $ (19,346 ) $ — $ (19,346 ) $ — $ 23,700 $ — $ 23,700 |
Commercial Mortgage, Subordin_2
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at December 31, 2019 and 2018 ($ in thousands): Loan Type December 31, 2019 December 31, 2018 Commercial mortgage loans, net $ 5,326,967 $ 3,878,981 Subordinate loans and other lending assets, net 1,048,126 1,048,612 Total loans, net $ 6,375,093 $ 4,927,593 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the year ended December 31, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 3,019,401 — — 3,019,401 Add-on loan fundings (3) 416,056 — — 416,056 Loan repayments (2,037,322 ) — — (2,037,322 ) Gain (loss) on foreign currency translation 44,338 (689 ) — 43,649 Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (46,275 ) — (46,275 ) PIK interest, amortization of fees and other items 55,368 29,136 — 84,504 December 31, 2019 $ 6,467,842 $ (35,768 ) $ (56,981 ) $ 6,375,093 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH. (2) In addition to the $57.0 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. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . |
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Number of loans 72 69 Principal balance $ 6,467,842 $ 4,982,514 Carrying value $ 6,375,093 $ 4,927,593 Unfunded loan commitments (1) $ 1,952,887 $ 1,095,598 Weighted-average cash coupon (2) 6.5 % 8.4 % Weighted-average remaining term (3) 3.3 years 2.8 years Weighted-average expected maturity (4) 1.8 years 1.9 years ——————— (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. (3) Assumes all extension options are exercised. (4) Expected maturity represents our estimated timing of repayments as of December 31, 2019. |
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, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,660,162 26.0 % $ 1,286,590 26.1 % Office 1,401,400 22.0 % 832,620 16.9 % Residential-for-sale: construction 692,816 10.9 % 528,510 10.7 % Residential-for-sale: inventory 321,673 5.1 % 577,053 11.7 % Urban Retail 643,706 10.1 % — — % Urban Predevelopment 409,864 6.4 % 683,886 13.9 % Healthcare 371,423 5.8 % 156,814 3.2 % Other 874,049 13.7 % 862,120 17.5 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): December 31, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 1,793,570 28.1 % $ 1,669,145 33.9 % Brooklyn, NY 373,917 5.9 % 346,056 7.0 % Northeast 110,771 1.7 % 23,479 0.5 % West 728,182 11.4 % 614,160 12.5 % Midwest 614,337 9.6 % 631,710 12.8 % Southeast 564,166 8.9 % 559,043 11.3 % United Kingdom 1,274,390 20.0 % 700,460 14.2 % Other 915,760 14.4 % 383,540 7.8 % Total $ 6,375,093 100.0 % $ 4,927,593 100.0 % |
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, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 8 348,324 5 % 3 138,040 3 % 3 61 5,707,555 90 % 63 4,573,930 93 % 4 1 182,910 3 % — — — % 5 2 136,304 2 % 3 215,623 4 % 72 $ 6,375,093 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Interest receivable $ 35,581 $ 33,399 Collateral deposited under derivative agreements 17,090 — Other 45 321 Total $ 52,716 $ 33,720 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Weighted Average Maturities and Interest Rates of Borrowings | At December 31, 2019 and 2018 , our borrowings had the following secured debt arrangements, maturities and weighted- average interest rates ($ in thousands): December 31, 2019 (2) December 31, 2018 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,154,109 $ 1,090,160 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 51,702 50,410 June 2024 48,497 48,497 June 2021 JPMorgan Facility (EUR) 94,189 94,189 June 2024 N/A N/A N/A DB Repurchase Facility (USD) 1,250,000 513,876 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) N/A N/A N/A 150,819 150,819 March 2021 Goldman Facility (USD) 500,000 322,170 November 2021 300,000 210,072 November 2020 CS Facility - USD 226,068 218,644 June 2020 187,117 187,117 June 2019 CS Facility - GBP 93,915 93,915 June 2020 151,773 151,773 June 2019 HSBC Facility - USD 50,625 50,625 October 2020 N/A N/A N/A HSBC Facility - GBP 34,634 34,634 June 2020 48,835 48,835 December 2019 HSBC Facility - EUR 154,037 154,037 January 2021 N/A N/A N/A Barclays Facility (GBP) 538,916 290,347 February 2024 N/A N/A N/A Barclays Facility (EUR) 182,549 182,549 November 2020 N/A N/A N/A Sub-total 4,330,744 3,095,556 3,124,725 1,897,077 less: deferred financing costs N/A (17,190 ) N/A (17,555 ) Total / Weighted-Average $ 4,330,744 $ 3,078,366 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rate as of December 31, 2019 was USD L + 2.07% / GBP L + 1.75% / EUR L + 1.36% . |
Remaining Maturities of Borrowings | At December 31, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 143,841 $ 251,002 $ 839,916 $ — $ 1,234,759 DB Repurchase Facility 32,400 481,476 — — 513,876 Goldman Facility — 322,170 — — 322,170 CS Facility - USD 218,644 — — — 218,644 CS Facility - GBP 93,915 — — — 93,915 HSBC Facility - USD 50,625 — — — 50,625 HSBC Facility - GBP 34,634 — — — 34,634 HSBC Facility - EUR — 154,037 — — 154,037 Barclays Facility (GBP) — — 290,347 — 290,347 Barclays Facility (EUR) 182,549 — — — 182,549 Total $ 756,608 $ 1,208,685 $ 1,130,263 $ — $ 3,095,556 ——————— (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, 2019 , as well as the maximum and average month-end balances for the year ended December 31, 2019 for our borrowings under secured debt arrangements ($ in thousands). For the year ended December 31, 2019 Balance at December 31, 2019 Amortized Cost of collateral at December 31, 2019 Maximum Month-End Average Month-End JPMorgan Facility $ 1,234,759 $ 1,845,400 $ 1,234,759 $ 947,400 DB Repurchase Facility 513,876 766,676 757,117 604,067 Goldman Facility 322,170 513,559 324,821 246,318 CS Facility - USD 218,644 308,884 218,644 182,646 CS Facility - GBP 93,915 129,723 150,811 134,694 HSBC Facility - USD 50,625 66,960 50,625 50,625 HSBC Facility - GBP 34,634 49,976 50,784 42,296 HSBC Facility - EUR 154,037 190,780 154,037 151,889 Barclays Facility (GBP) 290,347 738,455 290,347 139,004 Barclays Facility (EUR) 182,549 241,674 182,549 181,159 Total $ 3,095,556 $ 4,852,087 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2022 Notes $ 345,000 4.75 % 5.60 % 50.2260 8/23/2022 2.65 years 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 3.79 years Total $ 575,000 ——————— (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, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Non-Designated Foreign Exchange Forwards | The following table summarizes our non-designated foreign exchange forwards and our interest rate swap as of December 31, 2019 : Type of Derivative December 31, 2019 Number of Contracts Aggregate Notional Amount (in Thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 156 735,349 GBP January 2020 - December 2024 1.49 Fx Contracts - EUR 44 168,879 EUR February 2020 - August 2024 3.22 Interest Rate Swap 1 500,000 USD May 2026 6.37 The following table summarizes our non-designated Fx forwards as of December 31, 2018 : Type of Derivative December 31, 2018 Number of Contracts Aggregate Notional Amount (in Thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 0.69 |
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, 2019 , 2018 and 2017 ($ in thousands): Amount of gain (loss) recognized in income Location of Gain (Loss) Recognized in Income 2019 2018 2017 Forward currency contracts Gain (loss) on derivative instruments - unrealized $ (28,576 ) $ 29,345 $ (11,527 ) Forward currency contracts Gain (loss) on derivative instruments - realized 14,151 9,713 (7,657 ) Interest rate caps (1) Gain on derivative instruments - unrealized — — 4 Sub-total $ (14,425 ) $ 39,058 $ (19,180 ) Forward currency contracts Loss from unconsolidated joint venture — — (587 ) Total $ (14,425 ) $ 39,058 $ (19,767 ) ——————— (1) With a notional amount of $0.0 million , $34.9 million , and $40.2 million at December 31, 2019 , 2018 , and 2017 , respectively. In connection with our senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% or an all-in interest rate of 4.87% . We use our interest rate swap to manage exposure to variable cash flows on our borrowings under our senior secured term loan. Our interest rate swap allows us to receive a variable rate cash flow based on LIBOR and pay a fixed rate cash flow, mitigating the impact of this exposure. Gains or losses related to the interest rate swap are recorded net under interest expense in our consolidated statement of operations. Amount of loss recognized in income Location of Loss Recognized in Income 2019 2018 2017 Interest rate swap (1) Unrealized loss on interest rate swap $ (14,470 ) $ — $ — ——————— (1) With a notional amount of $500.0 million , $0.0 million , and $0.0 million at December 31, 2019 , 2018 , and 2017 , respectively. |
Summarizes Gross Asset and Liability Amounts Related to Derivatives | The following table summarizes the gross asset and liability amounts related to our derivatives at December 31, 2019 and 2018 ($ in thousands). December 31, 2019 December 31, 2018 Gross Amount of Gross Amounts Net Amounts Gross Gross Net Amounts Interest rate swap $ (14,470 ) $ — $ (14,470 ) $ — $ — $ — Forward currency contracts (12,687 ) 7,811 (4,876 ) 23,753 (53 ) 23,700 Total derivative instruments $ (27,157 ) $ 7,811 $ (19,346 ) $ 23,753 $ (53 ) $ 23,700 |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 December 31, 2018 Accrued dividends payable $ 74,771 $ 69,033 Accrued interest payable 16,089 14,208 Accounts payable and other liabilities 6,922 1,505 Collateral deposited under derivative agreements 2,930 20,000 Total $ 100,712 $ 104,746 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [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 2019 , 2018 and 2017 : Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) 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 Grant 27,245 1,069,202 20,483 Vested (67,586 ) (877,261 ) N/A Forfeiture — (37,543 ) N/A Outstanding at December 31,2019 25,356 2,007,355 Below is a summary of restricted stock and RSU vesting dates as of December 31, 2019 : Vesting Year Restricted Stock RSU Total Awards 2020 25,356 964,829 990,185 2021 — 686,126 686,126 2022 — 356,400 356,400 Total 25,356 2,007,355 2,032,711 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | During 2019 , 2018 and 2017 , we declared the following dividends: Dividend declared per share of: 2019 2018 2017 Common Stock (1) $1.84 $1.84 $1.84 Series A Preferred Stock (2) N/A N/A 1.19 Series B Preferred Stock 2.00 2.00 2.00 Series C Preferred Stock (3) 0.72 2.00 2.00 ——————— (1) As our aggregate 2019 distributions exceeded our earnings and profits, $0.46 of the January 2020 distribution declared in the fourth quarter of 2019 are payable to common stockholders of record as of December 31, 2019 will be treated as a 2020 distribution for U.S. federal income tax purposes. (2) The Series A Preferred Stock shares were redeemed in full in August 2017. (3) The Series C Preferred Stock shares were redeemed in full in June 2019. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Financial Instruments | The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the consolidated balance sheet at December 31, 2019 and 2018 ($ in thousands): December 31, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 452,282 $ 452,282 $ 109,806 $ 109,806 Commercial mortgage loans, net 5,326,967 5,380,693 3,878,981 3,894,947 Subordinate loans and other lending assets, net (1) 1,048,126 1,050,961 1,048,612 1,047,854 Secured debt arrangements, net (3,078,366 ) (3,078,366 ) (1,897,077 ) (1,897,077 ) Senior secured term loan, net (487,961 ) (499,988 ) — — 2019 Notes — — (34,278 ) (35,276 ) 2022 Notes (337,755 ) (348,060 ) (335,291 ) (326,025 ) 2023 Notes (223,818 ) (234,600 ) (222,431 ) (221,964 ) ——————— (1) As of December 31, 2019 includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying values. We did not hold any such instruments as of December 31, 2018. |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 , and 2017 ($ in thousands except per share data): For the year ended 2019 2018 2017 Basic Earnings Net income $ 230,174 $ 219,986 $ 193,031 Less: Preferred dividends (18,525 ) (27,340 ) (36,761 ) Net income available to common stockholders $ 211,649 $ 192,646 $ 156,270 Less: Dividends on participating securities (3,867 ) (3,405 ) (2,913 ) Basic Earnings $ 207,782 $ 189,241 $ 153,357 Diluted Earnings Net income $ 230,174 $ 219,986 $ 193,031 Less: Preferred dividends (18,525 ) (27,340 ) (36,761 ) Net income available to common stockholders $ 211,649 $ 192,646 $ 156,270 Add: Interest expense on Notes 35,173 34,779 N/A Diluted Earnings $ 246,822 $ 227,425 $ 156,270 Number of Shares: Basic weighted-average shares of common stock outstanding 146,881,231 124,147,073 99,859,153 Diluted weighted-average shares of common stock outstanding 175,794,896 153,821,515 101,232,610 Earnings Per Share Attributable to common stockholders Basic $ 1.41 $ 1.52 $ 1.54 Diluted $ 1.40 $ 1.48 $ 1.54 |
Summarized Quarterly Results _2
Summarized Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Summarized Quarterly Results | March 31, June 30, September 30, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Net interest income: Interest income from commercial mortgage loans $ 78,286 $ 52,114 $ 77,458 $ 65,141 $ 81,136 $ 71,179 $ 85,595 $ 75,275 Interest income from subordinate loans and other lending assets 40,839 33,853 41,043 34,075 43,421 37,308 39,630 34,944 Interest expense (36,295 ) (22,740 ) (33,511 ) (28,437 ) (39,341 ) (31,007 ) (43,779 ) (32,413 ) Net interest income 82,830 63,227 84,990 70,779 85,216 77,480 81,446 77,806 Operating expenses: General and administrative expenses (6,151 ) (4,998 ) (6,574 ) (5,652 ) (5,839 ) (5,843 ) (5,533 ) (3,977 ) Management fees to related party (9,613 ) (8,092 ) (10,259 ) (9,013 ) (10,434 ) (9,515 ) (10,428 ) (9,804 ) Total operating expenses (15,764 ) (13,090 ) (16,833 ) (14,665 ) (16,273 ) (15,358 ) (15,961 ) (13,781 ) Other income 518 203 484 343 429 427 682 465 Reversal of (provision for) loan losses and impairments — — 15,000 (5,000 ) (35,000 ) — — (15,000 ) Realized loss on investments — — (12,513 ) — — — — — Foreign currency gain (loss) 6,894 10,125 (7,777 ) (29,649 ) (19,129 ) (4,050 ) 39,830 (6,761 ) Loss on early extinguishment of debt — — — — — (2,573 ) — — Gain (loss) on foreign currency forwards (6,720 ) (11,032 ) 11,186 33,538 24,153 6,291 (43,044 ) 10,261 Gain (loss) on interest rate swap — — (13,113 ) — (10,307 ) — 8,950 — Net income $ 67,758 $ 49,433 $ 61,424 $ 55,346 $ 29,089 $ 62,217 $ 71,903 $ 52,990 Preferred dividends (6,835 ) (6,835 ) (4,919 ) (6,834 ) (3,385 ) (6,836 ) (3,386 ) (6,835 ) Net income available to common stockholders $ 60,923 $ 42,598 $ 56,505 $ 48,512 $ 25,704 $ 55,381 $ 68,517 $ 46,155 Net income per share of common stock: Basic $0.45 $0.38 $0.38 $0.39 $0.16 $0.42 $0.44 $0.34 Diluted $0.43 $0.38 $0.37 $0.39 $0.16 $0.40 $0.42 $0.34 Basic weighted-average shares of common stock outstanding 134,607,107 110,211,853 145,567,963 123,019,993 153,531,678 129,188,343 153,537,074 133,852,915 Diluted weighted-average shares of common stock outstanding 164,683,086 111,871,429 174,101,234 124,629,317 153,531,678 153,918,435 182,070,345 163,900,633 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_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Jan. 01, 2020USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |||
Number of business segments | segment | 1 | ||
Capitalized financing costs | $ 24.5 | $ 17.6 | |
Debt Securities, Available-for-sale [Line Items] | |||
Allowance reserve | 60 | ||
Commercial Mortgage Backed Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investment income, interest | 14.6 | ||
CMBS (Held-to-maturity Securities) | |||
Debt Securities, Available-for-sale [Line Items] | |||
Interest income from subordinate loans and other lending assets | 4.1 | ||
(CBMS) Fair Value Option | |||
Debt Securities, Available-for-sale [Line Items] | |||
Interest income from subordinate loans and other lending assets | 10.5 | ||
ASU 2016-13 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Loan carrying value | $ 136.3 | ||
Forecast | ASU 2016-13 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Allowance reserve | $ 31 | ||
Allowance reserve as a percentage of our loan portfolio | 0.50% | ||
Carrying value of loan portfolio excluding loans with reserve | $ 6,200 |
Fair Value Disclosure - Summari
Fair Value Disclosure - Summarizes Levels in Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | $ 0 | $ 23,700 |
Interest rate swap liability | (19,346) | 0 |
Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | (4,876) | 23,700 |
Interest rate swap liability | (14,470) | 0 |
Total | (19,346) | 23,700 |
Level 1 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Total | 0 | 0 |
Level 2 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | (4,876) | 23,700 |
Interest rate swap liability | (14,470) | 0 |
Total | (19,346) | 23,700 |
Level 3 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), net | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Total | $ 0 | $ 0 |
Commercial Mortgage, Subordin_3
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 6,375,093 | $ 4,927,593 |
Commercial Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | 5,326,967 | 3,878,981 |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 1,048,126 | $ 1,048,612 |
Commercial Mortgage, Subordin_4
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Activity Relating to Loan Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principal Balance | |||||||||||
Loan repayments | $ (1,428,535) | $ (675,140) | $ (218,002) | ||||||||
Gain (loss) on foreign currency translation | 43,649 | (51,013) | |||||||||
Realized loss on investment, net of provision for loan loss reversal | 2,487 | 0 | |||||||||
Provision for Loan Loss | |||||||||||
Provision for loan losses | $ 0 | $ (35,000) | $ 15,000 | $ 0 | $ (15,000) | $ 0 | $ (5,000) | $ 0 | (20,000) | (20,000) | $ (5,000) |
Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||
Principal Balance | |||||||||||
Principal balance, beginning | 4,982,514 | 4,982,514 | |||||||||
New loan fundings | 3,019,401 | ||||||||||
Add-on loan fundings | 416,056 | ||||||||||
Loan repayments | (2,037,322) | ||||||||||
Gain (loss) on foreign currency translation | 44,338 | ||||||||||
Realized loss on investment, net of provision for loan loss reversal | 12,500 | (12,513) | |||||||||
PIK interest, amortization of fees and other items | 55,368 | ||||||||||
Principal balance, ending | 6,467,842 | 4,982,514 | 6,467,842 | 4,982,514 | |||||||
Deferred Fees/Other Items | |||||||||||
Deferred fees/other items, beginning | (17,940) | (17,940) | |||||||||
Gain (loss) on foreign currency translation | (689) | ||||||||||
Deferred fees | (46,275) | ||||||||||
PIK interest, amortization of fees and other items | 29,136 | ||||||||||
Deferred fees/other items, ending | (35,768) | (17,940) | (35,768) | (17,940) | |||||||
Provision for Loan Loss | |||||||||||
Provision for loans, beginning | (36,981) | (36,981) | |||||||||
Realized loss on investment, net of provision for loan loss reversal | $ 15,000 | 15,000 | |||||||||
Provision for loan losses | (35,000) | ||||||||||
Provision for loans, ending | (56,981) | (36,981) | (56,981) | (36,981) | |||||||
Carrying Value | |||||||||||
Carrying value, beginning balance | $ 4,927,593 | 4,927,593 | |||||||||
Gain (loss) on foreign currency translation | 43,649 | ||||||||||
Realized loss on investment, net of provision for loan loss reversal | 2,487 | ||||||||||
Deferred fees | (46,275) | ||||||||||
PIK interest, amortization of fees and other items | 84,504 | ||||||||||
Carrying value, ending balance | $ 6,375,093 | $ 4,927,593 | 6,375,093 | $ 4,927,593 | |||||||
Other Assets | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||
Carrying Value | |||||||||||
Impairment | 3,000 | ||||||||||
Retail Center - Cincinnati, OH | |||||||||||
Carrying Value | |||||||||||
Proceeds on commercial mortgage loan | $ 1,400 |
Commercial Mortgage, Subordin_5
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019USD ($)$ / ft² | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / ft² | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)loan | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($)$ / ft² | Dec. 31, 2018USD ($)$ / ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2018USD ($) | Sep. 30, 2017USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Percentage of loan portfolio | 100.00% | 100.00% | |||||||||||||
Provision for loan losses and impairment, net of reversals | $ 0 | $ 35,000 | $ (15,000) | $ 0 | $ 15,000 | $ 0 | $ 5,000 | $ 0 | $ 20,000 | $ 20,000 | $ 5,000 | ||||
Payment in kind interest | 54,600 | 43,500 | 25,200 | ||||||||||||
Proceeds received from PIK | 16,469 | 75,652 | 0 | ||||||||||||
Loan loss provision and impairment | 35,000 | (20,000) | |||||||||||||
Realized loss on investment, net of provision for loan loss reversal | 2,487 | 0 | |||||||||||||
Carrying value | 6,375,093 | 4,927,593 | 6,375,093 | 4,927,593 | |||||||||||
Proceeds from pre-payment penalties or accelerated fees | 6,100 | 2,300 | $ 5,400 | ||||||||||||
Realized (loss) gain on sale of securities | (5,500) | ||||||||||||||
Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Provision for loan losses and impairment, net of reversals | 35,000 | ||||||||||||||
Loans and leases receivable, net amount | 6,375,093 | 4,927,593 | 6,375,093 | 4,927,593 | |||||||||||
Loan loss provision and impairment | 57,000 | 37,000 | |||||||||||||
Realized loss on investment, net of provision for loan loss reversal | 12,500 | (12,513) | |||||||||||||
Financing receivable, credit loss, expense (reversal) | $ 15,000 | 15,000 | |||||||||||||
Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Carrying value | 5,326,967 | 3,878,981 | 5,326,967 | 3,878,981 | |||||||||||
Subordinate Mortgage and Other Lending Assets Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Carrying value | 1,048,126 | 1,048,612 | 1,048,126 | 1,048,612 | |||||||||||
Guarantor obligations, maximum exposure, undiscounted | 68,300 | $ 68,300 | |||||||||||||
Guarantor obligations, maximum exposure, term | 6 years 9 months 21 days | ||||||||||||||
Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Provision for loan losses and impairment, net of reversals | 32,000 | 15,000 | $ 47,000 | ||||||||||||
Loans and leases receivable, net amount | 124,600 | 156,100 | 124,600 | 156,100 | |||||||||||
Payment in kind interest | 1,400 | ||||||||||||||
Loan loss provision and impairment | 32,000 | 15,000 | |||||||||||||
Residential Condominium - Bethesda, MD | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Provision for loan losses and impairment, net of reversals | $ 3,000 | $ 5,000 | $ 2,000 | ||||||||||||
Loans and leases receivable, net amount | 11,700 | 27,200 | 11,700 | 27,200 | |||||||||||
Loan loss provision and impairment | 13,000 | ||||||||||||||
Impairment | 3,000 | ||||||||||||||
Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan loss provision and impairment | 3,000 | 5,000 | |||||||||||||
Multifamily - Williston, ND | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loans and leases receivable, net amount | 32,400 | 32,400 | |||||||||||||
Multifamily - Williston, ND | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Provision for loan losses and impairment, net of reversals | $ 10,000 | ||||||||||||||
Multifamily - Williston, ND | Subordinate Mortgage and Other Lending Assets Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Provision for loan losses and impairment, net of reversals | $ 5,000 | ||||||||||||||
Retail, New York, NY | Subordinate Mortgage and Other Lending Assets Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Carrying value | 470,800 | 470,800 | |||||||||||||
Exposure to mortgage loan | 318,100 | 318,100 | |||||||||||||
Office Campus - Renton, WA | Subordinate Mortgage and Other Lending Assets Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Carrying value | $ 265,000 | 265,000 | |||||||||||||
Proceeds from sale of loan | 75,000 | ||||||||||||||
Exposure to mortgage loan | 190,000 | 190,000 | |||||||||||||
Proceeds from sale of loan, amount funded | $ 17,700 | ||||||||||||||
Exposure to mortgage loan, amount funded | $ 128,000 | $ 128,000 | |||||||||||||
Capitalization rate | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan collateral, measurement input | 0.0775 | 0.0675 | 0.0775 | 0.0675 | |||||||||||
Dollars per square foot | Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan collateral, measurement input | $ / ft² | 573 | 662 | 573 | 662 | |||||||||||
Discount rate | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan collateral, measurement input | 0.10 | ||||||||||||||
Discount rate | Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan collateral, measurement input | 0.10 | 0.15 | 0.10 | 0.15 | |||||||||||
Terminal capitalization rate | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Loan collateral, measurement input | 0.11 | ||||||||||||||
Contractual Interest Rate Reduction | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Number of loans restructured | loan | 1 | ||||||||||||||
Unpaid principal balance of loan restructured | $ 171,200 | ||||||||||||||
Contractual Interest Rate Reduction | London Interbank Offered Rate (LIBOR) | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Basis spread on variable rate | 3.00% | 5.50% | |||||||||||||
Other Assets | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Impairment | $ 3,000 | ||||||||||||||
Floating Rate Loan | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Percentage of loan portfolio | 95.00% | 91.00% | |||||||||||||
Mortgage loans | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Original face amount of mortgage | $ 6,467,842 | $ 4,982,514 | $ 6,467,842 | $ 4,982,514 | |||||||||||
Affiliated Entity | Commercial Mortgage Portfolio Segment | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Carrying value | $ 100,000 | $ 300,000 | $ 125,000 | ||||||||||||
Miami, Florida | Mortgage loans | |||||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||||
Original face amount of mortgage | 180,000 | 180,000 | |||||||||||||
Mortgage loan in nonaccrual status | $ 182,900 | $ 222,000 | $ 182,900 | $ 222,000 |
Commercial Mortgage, Subordin_6
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Statistics for Loan Portfolio (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 72 | 69 |
Carrying value | $ 6,375,093 | $ 4,927,593 |
Unfunded loan commitments | $ 1,952,887 | $ 1,095,598 |
Weighted-average cash coupon | 6.50% | 8.40% |
Weighted-average remaining term | 3 years 3 months 18 days | 2 years 9 months 18 days |
Weighted-average expected maturity | 1 year 9 months 18 days | 1 year 10 months 24 days |
Mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Principal balance | $ 6,467,842 | $ 4,982,514 |
Commercial Mortgage, Subordin_7
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 6,375,093 | $ 4,927,593 |
% of Portfolio | 100.00% | 100.00% |
Manhattan, NY | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,793,570 | $ 1,669,145 |
% of Portfolio | 28.10% | 33.90% |
Brooklyn, NY | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 373,917 | $ 346,056 |
% of Portfolio | 5.90% | 7.00% |
Northeast | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 110,771 | $ 23,479 |
% of Portfolio | 1.70% | 0.50% |
West | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 728,182 | $ 614,160 |
% of Portfolio | 11.40% | 12.50% |
Midwest | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 614,337 | $ 631,710 |
% of Portfolio | 9.60% | 12.80% |
Southeast | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 564,166 | $ 559,043 |
% of Portfolio | 8.90% | 11.30% |
United Kingdom | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,274,390 | $ 700,460 |
% of Portfolio | 20.00% | 14.20% |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 915,760 | $ 383,540 |
% of Portfolio | 14.40% | 7.80% |
Hotel | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,660,162 | $ 1,286,590 |
% of Portfolio | 26.00% | 26.10% |
Office | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,401,400 | $ 832,620 |
% of Portfolio | 22.00% | 16.90% |
Residential-for-sale: construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 692,816 | $ 528,510 |
% of Portfolio | 10.90% | 10.70% |
Residential-for-sale: inventory | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 321,673 | $ 577,053 |
% of Portfolio | 5.10% | 11.70% |
Urban Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 643,706 | $ 0 |
% of Portfolio | 10.10% | 0.00% |
Urban Predevelopment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 409,864 | $ 683,886 |
% of Portfolio | 6.40% | 13.90% |
Healthcare | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 371,423 | $ 156,814 |
% of Portfolio | 5.80% | 3.20% |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 874,049 | $ 862,120 |
% of Portfolio | 13.70% | 17.50% |
Commercial Mortgage, Subordin_8
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Allocation of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 72 | 69 |
Carrying value | $ | $ 6,375,093 | $ 4,927,593 |
% of Portfolio | 100.00% | 100.00% |
Weighted-average risk rating | 3 | 3.1 |
1 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Carrying value | $ | $ 0 | $ 0 |
% of Portfolio | 0.00% | 0.00% |
2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 8 | 3 |
Carrying value | $ | $ 348,324 | $ 138,040 |
% of Portfolio | 5.00% | 3.00% |
3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 61 | 63 |
Carrying value | $ | $ 5,707,555 | $ 4,573,930 |
% of Portfolio | 90.00% | 93.00% |
4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Carrying value | $ | $ 182,910 | $ 0 |
% of Portfolio | 3.00% | 0.00% |
5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 2 | 3 |
Carrying value | $ | $ 136,304 | $ 215,623 |
% of Portfolio | 2.00% | 4.00% |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loan proceeds held by servicer | $ 8,272 | $ 1,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 35,581 | $ 33,399 |
Collateral deposited under derivative agreements | 17,090 | 0 |
Other | 45 | 321 |
Total | $ 52,716 | $ 33,720 |
Secured Debt Arrangements, Ne_2
Secured Debt Arrangements, Net - Weighted Average Maturities and Interest Rates of Borrowings (Details) € in Millions, £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||
Borrowings Outstanding | $ 3,078,366,000 | $ 1,879,522,000 | |||||
less: deferred financing costs | (24,500,000) | (17,600,000) | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 4,330,744,000 | 3,124,725,000 | |||||
Borrowings Outstanding | 3,078,366,000 | 1,879,522,000 | |||||
less: deferred financing costs | $ (17,190,000) | (17,555,000) | |||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average rate | 2.07% | ||||||
Line of Credit | GBP London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average rate | 1.75% | ||||||
Line of Credit | EUR London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average rate | 1.36% | ||||||
Line of Credit | JP Morgan Chase, DB Repurchase Facility, Goldman Sachs, Credit Suisse, Barclays Facility And HSBC Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | $ 4,330,744,000 | 3,124,725,000 | |||||
Borrowings Outstanding | 3,095,556,000 | 1,897,077,000 | |||||
Line of Credit | Deutsche Bank Repurchase Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | $ 1,250,000,000 | ||||||
Borrowings Outstanding | 513,900,000 | ||||||
Line of Credit | Goldman Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | $ 500,000,000 | $ 300,000,000 | |||||
Borrowings Outstanding | 322,200,000 | ||||||
Line of Credit | Barclays Facility | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings Outstanding | 472,900,000 | ||||||
USD | Line of Credit | JP Morgan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 1,154,109,000 | 1,333,503,000 | |||||
Borrowings Outstanding | 1,090,160,000 | 680,141,000 | |||||
USD | Line of Credit | Deutsche Bank Repurchase Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 1,250,000,000 | 904,181,000 | |||||
Borrowings Outstanding | 513,876,000 | 419,823,000 | |||||
USD | Line of Credit | Goldman Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 500,000,000 | 300,000,000 | |||||
Borrowings Outstanding | 322,170,000 | 210,072,000 | |||||
USD | Line of Credit | Credit Suisse Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 226,068,000 | 187,117,000 | |||||
Borrowings Outstanding | 218,644,000 | 187,117,000 | |||||
USD | Line of Credit | HSBC Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 50,625,000 | ||||||
Borrowings Outstanding | 50,625,000 | ||||||
GBP | Line of Credit | JP Morgan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 51,702,000 | 48,497,000 | |||||
Borrowings Outstanding | 50,410,000 | 48,497,000 | |||||
GBP | Line of Credit | Deutsche Bank Repurchase Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 150,819,000 | ||||||
Borrowings Outstanding | 150,819,000 | ||||||
GBP | Line of Credit | Credit Suisse Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 93,915,000 | 151,773,000 | |||||
Borrowings Outstanding | 93,900,000 | £ 70.8 | 151,773,000 | ||||
GBP | Line of Credit | HSBC Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 34,634,000 | 48,835,000 | |||||
Borrowings Outstanding | 34,634,000 | 26.1 | $ 48,835,000 | ||||
GBP | Line of Credit | Barclays Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 538,916,000 | ||||||
Borrowings Outstanding | 290,347,000 | £ 219 | |||||
EUR | Line of Credit | JP Morgan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 94,189,000 | ||||||
Borrowings Outstanding | 94,189,000 | ||||||
EUR | Line of Credit | HSBC Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 154,037,000 | ||||||
Borrowings Outstanding | 154,037,000 | € 137.4 | |||||
EUR | Line of Credit | Barclays Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Amount of Borrowings | 182,549,000 | ||||||
Borrowings Outstanding | $ 182,549,000 |
Secured Debt Arrangements, Ne_3
Secured Debt Arrangements, Net - Additional Information (Details) € in Millions, £ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2019USD ($)extensionsubsidiary | Jul. 31, 2018 | Jun. 30, 2018 | Nov. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019GBP (£) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Borrowings Outstanding | $ 3,078,366,000 | $ 1,879,522,000 | ||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 4,330,744,000 | 3,124,725,000 | ||||||||
Securities sold under agreements to repurchase, gross | 3,095,556,000 | |||||||||
Borrowings Outstanding | 3,078,366,000 | 1,879,522,000 | ||||||||
Line of Credit | JP Morgan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Securities sold under agreements to repurchase, gross | $ 1,234,759,000 | |||||||||
Line of Credit | Deutsche Bank Repurchase Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | $ 1,250,000,000 | |||||||||
Extension option | 1 year | |||||||||
Securities sold under agreements to repurchase, gross | $ 513,876,000 | |||||||||
Borrowings Outstanding | 513,900,000 | |||||||||
Line of Credit | Goldman Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | $ 300,000,000 | $ 500,000,000 | ||||||||
Extension option | 1 year | |||||||||
Securities sold under agreements to repurchase, gross | 322,170,000 | |||||||||
Borrowings Outstanding | 322,200,000 | |||||||||
Line of Credit | Barclays Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings Outstanding | 472,900,000 | |||||||||
Amended and Restated JPMorgan Facility | Line of Credit | JP Morgan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of subsidiaries | subsidiary | 3 | |||||||||
Maximum borrowing under facility | $ 1,300,000,000 | |||||||||
Debt instrument, number of extensions available | extension | 2 | |||||||||
Extension option | 1 year | |||||||||
Securities sold under agreements to repurchase, gross | 1,200,000,000 | € 84 | £ 38 | |||||||
USD | Line of Credit | JP Morgan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 1,154,109,000 | 1,333,503,000 | ||||||||
Borrowings Outstanding | 1,090,160,000 | 680,141,000 | ||||||||
USD | Line of Credit | Deutsche Bank Repurchase Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 1,250,000,000 | 904,181,000 | ||||||||
Borrowings Outstanding | 513,876,000 | 419,823,000 | ||||||||
USD | Line of Credit | Goldman Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 500,000,000 | 300,000,000 | ||||||||
Borrowings Outstanding | 322,170,000 | 210,072,000 | ||||||||
USD | Line of Credit | Credit Suisse Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 226,068,000 | 187,117,000 | ||||||||
Securities sold under agreements to repurchase, gross | 218,644,000 | |||||||||
Borrowings Outstanding | 218,644,000 | 187,117,000 | ||||||||
Term after either party notifies the other party of intention to terminate | 6 months | |||||||||
USD | Line of Credit | HSBC Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 50,625,000 | |||||||||
Securities sold under agreements to repurchase, gross | 50,625,000 | |||||||||
Borrowings Outstanding | 50,625,000 | |||||||||
GBP | Line of Credit | JP Morgan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 51,702,000 | 48,497,000 | ||||||||
Borrowings Outstanding | 50,410,000 | 48,497,000 | ||||||||
GBP | Line of Credit | Deutsche Bank Repurchase Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 150,819,000 | |||||||||
Borrowings Outstanding | 150,819,000 | |||||||||
GBP | Line of Credit | Credit Suisse Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 93,915,000 | 151,773,000 | ||||||||
Securities sold under agreements to repurchase, gross | 93,915,000 | |||||||||
Borrowings Outstanding | 93,900,000 | 70.8 | 151,773,000 | |||||||
Term after either party notifies the other party of intention to terminate | 6 months | |||||||||
GBP | Line of Credit | HSBC Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 34,634,000 | 48,835,000 | ||||||||
Securities sold under agreements to repurchase, gross | 34,634,000 | |||||||||
Borrowings Outstanding | 34,634,000 | 26.1 | $ 48,835,000 | |||||||
GBP | Line of Credit | Barclays Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 538,916,000 | |||||||||
Securities sold under agreements to repurchase, gross | 290,347,000 | |||||||||
Borrowings Outstanding | 290,347,000 | £ 219 | ||||||||
EUR | Line of Credit | JP Morgan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 94,189,000 | |||||||||
Borrowings Outstanding | 94,189,000 | |||||||||
EUR | Line of Credit | HSBC Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 154,037,000 | |||||||||
Securities sold under agreements to repurchase, gross | 154,037,000 | |||||||||
Borrowings Outstanding | 154,037,000 | € 137.4 | ||||||||
EUR | Line of Credit | Barclays Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing under facility | 182,549,000 | |||||||||
Securities sold under agreements to repurchase, gross | 182,549,000 | |||||||||
Borrowings Outstanding | $ 182,549,000 |
Secured Debt Arrangements, Ne_4
Secured Debt Arrangements, Net - Remaining Maturities of Borrowings (Details) - Line of Credit $ in Thousands | Dec. 31, 2019USD ($) |
Line of Credit Facility [Line Items] | |
Less than 1 year | $ 756,608 |
1 to 3 years | 1,208,685 |
3 to 5 years | 1,130,263 |
More than 5 years | 0 |
Total | 3,095,556 |
JP Morgan Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 143,841 |
1 to 3 years | 251,002 |
3 to 5 years | 839,916 |
More than 5 years | 0 |
Total | 1,234,759 |
Deutsche Bank Repurchase Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 32,400 |
1 to 3 years | 481,476 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 513,876 |
Goldman Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 322,170 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 322,170 |
USD | Credit Suisse Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 218,644 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 218,644 |
USD | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 50,625 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 50,625 |
GBP | Credit Suisse Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 93,915 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 93,915 |
GBP | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 34,634 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 34,634 |
GBP | Barclays Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 0 |
3 to 5 years | 290,347 |
More than 5 years | 0 |
Total | 290,347 |
EUR | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 154,037 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 154,037 |
EUR | Barclays Facility | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 182,549 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | $ 182,549 |
Secured Debt Arrangements, Ne_5
Secured Debt Arrangements, Net - Summary of Outstanding Balances, Maximum and Average Balances of Borrowings (Details) - Line of Credit $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Balance | $ 3,095,556 |
Amortized Cost of Collateral | 4,852,087 |
JP Morgan Facility | |
Line of Credit Facility [Line Items] | |
Balance | 1,234,759 |
Amortized Cost of Collateral | 1,845,400 |
Maximum Month-End Balance | 1,234,759 |
Average Month-End Balance | 947,400 |
Deutsche Bank Repurchase Facility | |
Line of Credit Facility [Line Items] | |
Balance | 513,876 |
Amortized Cost of Collateral | 766,676 |
Maximum Month-End Balance | 757,117 |
Average Month-End Balance | 604,067 |
Goldman Facility | |
Line of Credit Facility [Line Items] | |
Balance | 322,170 |
Amortized Cost of Collateral | 513,559 |
Maximum Month-End Balance | 324,821 |
Average Month-End Balance | 246,318 |
USD | Credit Suisse Facility | |
Line of Credit Facility [Line Items] | |
Balance | 218,644 |
Amortized Cost of Collateral | 308,884 |
Maximum Month-End Balance | 218,644 |
Average Month-End Balance | 182,646 |
USD | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Balance | 50,625 |
Amortized Cost of Collateral | 66,960 |
Maximum Month-End Balance | 50,625 |
Average Month-End Balance | 50,625 |
GBP | Credit Suisse Facility | |
Line of Credit Facility [Line Items] | |
Balance | 93,915 |
Amortized Cost of Collateral | 129,723 |
Maximum Month-End Balance | 150,811 |
Average Month-End Balance | 134,694 |
GBP | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Balance | 34,634 |
Amortized Cost of Collateral | 49,976 |
Maximum Month-End Balance | 50,784 |
Average Month-End Balance | 42,296 |
GBP | Barclays Facility | |
Line of Credit Facility [Line Items] | |
Balance | 290,347 |
Amortized Cost of Collateral | 738,455 |
Maximum Month-End Balance | 290,347 |
Average Month-End Balance | 139,004 |
EUR | HSBC Facility | |
Line of Credit Facility [Line Items] | |
Balance | 154,037 |
Amortized Cost of Collateral | 190,780 |
Maximum Month-End Balance | 154,037 |
Average Month-End Balance | 151,889 |
EUR | Barclays Facility | |
Line of Credit Facility [Line Items] | |
Balance | 182,549 |
Amortized Cost of Collateral | 241,674 |
Maximum Month-End Balance | 182,549 |
Average Month-End Balance | $ 181,159 |
Senior Secured Term Loan, Net (
Senior Secured Term Loan, Net (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Repayments of senior secured term loan principal | $ 2,500,000 | $ 0 | $ 0 | |
Deferred financing costs | 24,500,000 | 17,600,000 | ||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 500,000,000 | |||
Debt instrument, issuance price as a percentage | 99.50% | |||
Outstanding principal balance | 497,500,000 | |||
Senior secured term loan carrying value | 488,000,000 | |||
Deferred financing costs | 7,277,000 | $ 0 | ||
Unamortized discount | $ 2,200,000 | |||
Debt instrument, covenant, non-recourse debt to tangible net worth ratio, maximum | 3 | |||
Debt instrument, covenant, unencumbered assets to pari-passu indebtedness ratio, maximum | 1.25 | |||
Effective interest rate | 4.87% | |||
London Interbank Offered Rate (LIBOR) | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.12% |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Additional Information (Details) | Mar. 15, 2019USD ($) | Aug. 02, 2018USD ($)shares | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)offering | Dec. 31, 2014USD ($)offering |
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from issuance of convertible senior notes | $ 0 | $ 226,550,000 | $ 343,275,000 | ||||||||||||
Cash payment for debt redemption | 704,000 | 40,461,000 | 0 | ||||||||||||
Exchange of Notes for common stock | 33,778,000 | 180,016,000 | |||||||||||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (2,573,000) | $ 0 | $ 0 | 0 | 2,573,000 | 1,947,000 | ||||
Convertible senior notes, net | 561,573,000 | 592,000,000 | $ 592,000,000 | 561,573,000 | 592,000,000 | ||||||||||
Convertible Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 575,000,000 | 575,000,000 | |||||||||||||
Interest expense on debt | 29,100,000 | 28,200,000 | 18,700,000 | ||||||||||||
Additional non-cash interest expense | 6,000,000 | 7,100,000 | 4,700,000 | ||||||||||||
Convertible Debt | 2019 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of debt offerings issued | offering | 2 | ||||||||||||||
Principal Amount | $ 254,800,000 | ||||||||||||||
Proceeds from issuance of convertible senior notes | $ 248,600,000 | ||||||||||||||
Principal amount redeemed | $ 206,200,000 | 47,900,000 | |||||||||||||
Cash payment for debt redemption | $ 700,000 | $ 39,300,000 | 200,000 | ||||||||||||
Loss on early extinguishment of debt | 0 | 2,600,000 | $ 0 | ||||||||||||
Convertible Debt | 2022 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Number of debt offerings issued | offering | 2 | ||||||||||||||
Principal Amount | $ 345,000,000 | ||||||||||||||
Proceeds from issuance of convertible senior notes | $ 337,500,000 | ||||||||||||||
Convertible senior notes, net | 337,800,000 | 337,800,000 | |||||||||||||
Unamortized discount | 7,200,000 | 7,200,000 | |||||||||||||
Convertible Debt | 2023 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal Amount | 230,000,000 | $ 230,000,000 | $ 230,000,000 | ||||||||||||
Proceeds from issuance of convertible senior notes | $ 223,700,000 | ||||||||||||||
Convertible senior notes, net | 223,800,000 | 223,800,000 | |||||||||||||
Unamortized discount | $ 6,200,000 | $ 6,200,000 | |||||||||||||
Common Stock | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of convertible senior notes for common stock (in shares) | shares | 1,967,361 | 10,828,475 | |||||||||||||
Exchange of Notes for common stock | $ 20,000 | $ 108,000 | |||||||||||||
Share price (in dollars per share) | $ / shares | $ 18.29 | $ 16.66 | $ 16.66 | $ 18.29 | $ 16.66 | ||||||||||
Common Stock | Convertible Debt | 2019 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of convertible senior notes for common stock (in shares) | shares | 10,020,328 | 1,967,361 | 2,775,509 | 10,828,475 | |||||||||||
Exchange of Notes for common stock | $ 33,800,000 | ||||||||||||||
Additional Paid-In-Capital | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of Notes for common stock | $ 33,758,000 | $ 179,908,000 | |||||||||||||
Additional Paid-In-Capital | Convertible Debt | 2019 and 2022 Notes [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of Notes for common stock | 15,400,000 | ||||||||||||||
Additional Paid-In-Capital | Convertible Debt | 2019 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of Notes for common stock | $ 166,000,000 | $ 13,900,000 | |||||||||||||
Additional Paid-In-Capital | Convertible Debt | 2022 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Exchange of Notes for common stock | 11,000,000 | ||||||||||||||
Additional Paid-In-Capital | Convertible Debt | 2023 Notes | |||||||||||||||
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 | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 575,000,000 | ||
Conversion rate basis, principal amount | $ 1,000,000 | ||
2022 Notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 345,000,000 | ||
Coupon Rate | 4.75% | ||
Effective interest rate | 5.60% | ||
Conversion rate | 0.0502260 | ||
Remaining Period of Amortization | 2 years 7 months 24 days | ||
2023 Notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 230,000,000 | ||
Coupon Rate | 5.38% | ||
Effective interest rate | 6.16% | ||
Conversion rate | 0.0487187 | ||
Remaining Period of Amortization | 3 years 9 months 14 days |
Derivatives, Net - Summary of N
Derivatives, Net - Summary of Non-Designated Foreign Exchange Forwards (Details) - Not Designated as Hedging Instrument | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 1 | |
Aggregate Notional Amount (in Thousands) | $ | $ 500,000,000 | |
Weighted-Average Years to Maturity | 6 years 4 months 13 days | 8 months 8 days |
GBP | Forward Currency Contract | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 156 | 43 |
Aggregate Notional Amount (in Thousands) | $ | $ 735,349,000 | $ 270,161 |
Weighted-Average Years to Maturity | 1 year 5 months 26 days | |
EUR | Forward Currency Contract | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 44 | |
Aggregate Notional Amount (in Thousands) | $ | $ 168,879,000 | |
Weighted-Average Years to Maturity | 3 years 2 months 19 days |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Unrealized (gain) loss on derivative instruments | $ 8,950 | $ (10,307) | $ (13,113) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (43,046) | $ 29,345 | $ (11,523) |
Gain on derivative instruments - unrealized | (14,470) | 0 | 0 | ||||||||
Gain (loss) on foreign currency forwards | (43,044) | $ 24,153 | $ 11,186 | $ (6,720) | 10,261 | $ 6,291 | $ 33,538 | $ (11,032) | (14,425) | 39,058 | (19,180) |
Total | (14,425) | 39,058 | (19,767) | ||||||||
Forward Currency Contract | Gain (Loss) on Derivative Instruments | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Unrealized (gain) loss on derivative instruments | (28,576) | 29,345 | (11,527) | ||||||||
Gain (loss) on derivative instruments - realized | 14,151 | 9,713 | (7,657) | ||||||||
Forward Currency Contract | Loss From Unconsolidated Joint Venture | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) on derivative instruments - realized | 0 | 0 | (587) | ||||||||
Interest Rate Cap | Gain (Loss) on Derivative Instruments | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Unrealized (gain) loss on derivative instruments | 0 | 0 | 4 | ||||||||
Notional amount | 0 | 34,900 | 0 | 34,900 | 40,200 | ||||||
Interest Rate Swap | Gain (Loss) on Derivative Instruments | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain on derivative instruments - unrealized | (14,470) | 0 | 0 | ||||||||
Notional amount | $ 500,000 | $ 0 | $ 500,000 | $ 0 | $ 0 |
Derivatives, Net - Additional I
Derivatives, Net - Additional Information (Details) | May 31, 2019 |
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | |
Derivative [Line Items] | |
Fixed interest rate | 2.12% |
Secured Debt | |
Derivative [Line Items] | |
Effective interest rate | 4.87% |
Derivatives, Net - Summarizes G
Derivatives, Net - Summarizes Gross Asset and Liability Amounts Related to Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | $ (27,157) | |
Gross Amounts Offset in the Consolidated Balance Sheet | 7,811 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | (19,346) | |
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 | |
Interest Rate Swap | ||
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | (14,470) | |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | (14,470) | |
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 | |
Forward Currency Contract | ||
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | (12,687) | |
Gross Amounts Offset in the Consolidated Balance Sheet | 7,811 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ (4,876) | |
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 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued dividends payable | $ 74,771 | $ 69,033 |
Accrued interest payable | 16,089 | 14,208 |
Accounts payable and other liabilities | 6,922 | 1,505 |
Collateral deposited under derivative agreements | 2,930 | 20,000 |
Total | $ 100,712 | $ 104,746 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, € in Millions, £ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
May 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | May 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | May 31, 2017EUR (€) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party expenses | $ 10,428 | $ 10,434 | $ 10,259 | $ 9,613 | $ 9,804 | $ 9,515 | $ 9,013 | $ 8,092 | $ 40,734 | $ 36,424 | $ 31,652 | |||||||||
Base management fees incurred but not yet paid | 10,430 | 9,804 | 10,430 | 9,804 | ||||||||||||||||
Commercial mortgage loans and subordinate loans and other lending assets, net | $ 6,375,093 | 4,927,593 | 6,375,093 | 4,927,593 | ||||||||||||||||
Arrangement Fees | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party expenses | $ 600 | |||||||||||||||||||
Sale of mezzanine loan one | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from sale of loan | 30,300 | |||||||||||||||||||
Sale of mezzanine loan two | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from sale of loan | $ 122,300 | |||||||||||||||||||
Limited Liability Company | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Rate of management fees | 1.50% | |||||||||||||||||||
Extension period | 1 year | |||||||||||||||||||
Period of termination | 180 days | |||||||||||||||||||
Termination fee calculation period | 24 months | |||||||||||||||||||
Affiliated Entity | Management Fees | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party expenses | $ 40,700 | 36,400 | 31,700 | |||||||||||||||||
Affiliated Entity | Reimbursements | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Related party expenses | $ 3,600 | 3,100 | $ 2,600 | |||||||||||||||||
Champ Limited Partnership | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from sale of ownership interest in equity method investment | $ 24,500 | € 21.8 | ||||||||||||||||||
Loss from sale of ownership interest | $ 3,300 | |||||||||||||||||||
Champ Limited Partnership | Subsidiaries | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Indirect ownership interest from limited partnership | 0.00% | 0.00% | 59.00% | |||||||||||||||||
Commercial Mortgage Portfolio Segment | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Commercial mortgage loans and subordinate loans and other lending assets, net | $ 5,326,967 | $ 3,878,981 | $ 5,326,967 | $ 3,878,981 | ||||||||||||||||
Commercial Mortgage Portfolio Segment | Affiliated Entity | ||||||||||||||||||||
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 and other lending assets, net | $ 300,000 | $ 125,000 | $ 100,000 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 16, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 15,897 | $ 13,588 | $ 13,314 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 100 | |||
RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 35,100 | |||
LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 7,000,000 | |||
Common stock, shares delivered (in shares) | 433,585 | 378,855 | 200,859 | |
LTIP | RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units vested (in shares) | 730,980 | 741,210 | 938,541 | |
Adjustments to additional paid in capital, income tax deficiency from share-based compensation | $ 5,000 | $ 4,800 | $ 2,300 | |
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share price (in dollars per share) | $ 18.29 | $ 16.66 | ||
Common stock, shares delivered (in shares) | 466,370 | 378,855 | 200,859 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs (Details) - LTIP - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grant Date Fair Value | $ 20,483 | $ 19,148 | $ 17,496 |
Restricted Stock | |||
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) | 65,697 | 105,561 | 150,110 |
Grant (in shares) | 27,245 | 28,070 | 27,700 |
Vested (in shares) | (67,586) | (67,934) | (72,249) |
Forfeitures (in shares) | 0 | 0 | 0 |
Outstanding, ending balance (in shares) | 25,356 | 65,697 | 105,561 |
RSU | |||
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) | 1,852,957 | 1,632,746 | 1,703,775 |
Grant (in shares) | 1,069,202 | 1,006,800 | 912,916 |
Vested (in shares) | (877,261) | (739,388) | (938,541) |
Forfeitures (in shares) | (37,543) | (47,201) | (45,404) |
Outstanding, ending balance (in shares) | 2,007,355 | 1,852,957 | 1,632,746 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Restricted Stock and RSU Vesting Dates (Details) - LTIP | Dec. 31, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 2,032,711 |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 990,185 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 686,126 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 356,400 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 25,356 |
Restricted Stock | 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 25,356 |
Restricted Stock | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 0 |
Restricted Stock | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 0 |
RSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 2,007,355 |
RSU | 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 964,829 |
RSU | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 686,126 |
RSU | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 356,400 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2019 | Aug. 02, 2018 | Oct. 31, 2017 | Aug. 31, 2017 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||||||||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | 450,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Common stock, shares issued (in shares) | 133,853,565 | 153,537,296 | 133,853,565 | |||||||||
Common shares outstanding (in shares) | 133,853,565 | 153,537,296 | 133,853,565 | |||||||||
Stock issued during period, value, conversion of convertible securities | $ 33,778 | $ 180,016 | ||||||||||
Proceeds from issuance of common stock, net of offering costs | $ 314,800 | $ 275,900 | $ 248,900 | |||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ 16.66 | $ 18.29 | $ 16.66 | |||||||||
Issuance of stock (in shares) | 17,250,000 | 15,525,000 | 15,470,000 | |||||||||
Stock issued during period, value, conversion of convertible securities | $ 20 | $ 108 | ||||||||||
Exchange of convertible senior notes for common stock (in shares) | 1,967,361 | 10,828,475 | ||||||||||
Common Stock | Convertible Debt | 2019 Notes | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Price per share of issued stock (in dollars per share) | $ 17.17 | |||||||||||
Stock issued during period, value, conversion of convertible securities | $ 33,800 | |||||||||||
Exchange of convertible senior notes for common stock (in shares) | 10,020,328 | 1,967,361 | 2,775,509 | 10,828,475 | ||||||||
Common Stock | Follow-on public offering | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of stock (in shares) | 17,250,000 | 15,525,000 | 13,800,000 | |||||||||
Price per share of issued stock (in dollars per share) | $ 18.27 | $ 17.77 | $ 18.05 | |||||||||
QHREAC | ||||||||||||
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 | $ 30,800 | |||||||||||
Share price (in dollars per share) | $ 18.44 | |||||||||||
Series B Preferred Stock | ||||||||||||
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 | 6,770,393 | |||||||||
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 | 6,770,393 | |||||||||
Stock repurchased (in shares) | 1,229,607 | |||||||||||
Value of stock repurchased | $ 30,800 | |||||||||||
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 | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Preferred stock, shares issued (in shares) | 6,900,000 | 0 | 6,900,000 | |||||||||
Preferred stock, shares outstanding (in shares) | 6,900,000 | 6,900,000 | 0 | 6,900,000 | ||||||||
Redemption of preferred stock (in shares) | 6,900,000 | |||||||||||
Preferred stock, redemption price (in dollars per share) | $ 25 | |||||||||||
Preferred stock, dividends per share, declared (in dollars per share) | $ 0.2223 | |||||||||||
Series A Preferred Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Redemption of preferred stock (in shares) | 3,450,000 | |||||||||||
Preferred stock, redemption price (in dollars per share) | $ 25 | |||||||||||
Preferred stock, accumulated and unpaid dividends (in dollars per share) | $ 0.1079 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared (in dollars per share) | $ 0.46 | $ 1.84 | $ 1.84 | $ 1.84 | |||||||
Series A Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared (in dollars per share) | 1.19 | ||||||||||
Series B Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared (in dollars per share) | 2 | 2 | 2 | ||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared (in dollars per share) | $ 0.72 | $ 2 | $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Total damages including punitive | $ 70,000 | |
Damages sought by plaintiff | 700,000 | |
Unfunded loan commitments | 1,952,887 | $ 1,095,598 |
Commercial Mortgage and Subordinated Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded loan commitments | $ 2,000,000 |
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, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | $ 452,282 | $ 109,806 |
Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (3,078,366) | (1,897,077) |
Senior secured term loan, net | (487,961) | 0 |
Estimate of Fair Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | 452,282 | 109,806 |
Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (3,078,366) | (1,897,077) |
Senior secured term loan, net | (499,988) | 0 |
Commercial Mortgage Portfolio Segment | Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,326,967 | 3,878,981 |
Commercial Mortgage Portfolio Segment | Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,380,693 | 3,894,947 |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,048,126 | 1,048,612 |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,050,961 | 1,047,854 |
2019 Notes | Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | 0 | (34,278) |
2019 Notes | Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | 0 | (35,276) |
2022 Notes | Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (337,755) | (335,291) |
2022 Notes | Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (348,060) | (326,025) |
2023 Notes | Carrying Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (223,818) | (222,431) |
2023 Notes | Estimate of Fair Value | Level 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | $ (234,600) | $ (221,964) |
Net Income per Share - Basic an
Net Income 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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic Earnings | |||||||||||
Net income | $ 71,903 | $ 29,089 | $ 61,424 | $ 67,758 | $ 52,990 | $ 62,217 | $ 55,346 | $ 49,433 | $ 230,174 | $ 219,986 | $ 193,031 |
Less: Preferred dividends | (3,386) | (3,385) | (4,919) | (6,835) | (6,835) | (6,836) | (6,834) | (6,835) | (18,525) | (27,340) | (36,761) |
Net income available to common stockholders | $ 68,517 | $ 25,704 | $ 56,505 | $ 60,923 | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | 211,649 | 192,646 | 156,270 |
Less: Dividends on participating securities | (3,867) | (3,405) | (2,913) | ||||||||
Basic Earnings | 207,782 | 189,241 | 153,357 | ||||||||
Diluted Earnings | |||||||||||
Net income available to common stockholders | 211,649 | 192,646 | 156,270 | ||||||||
Add: Interest expense on Notes | 35,173 | 34,779 | |||||||||
Diluted Earnings | $ 246,822 | $ 227,425 | $ 156,270 | ||||||||
Number of Shares: | |||||||||||
Basic weighted-average shares of common stock outstanding (in shares) | 153,537,074 | 153,531,678 | 145,567,963 | 134,607,107 | 133,852,915 | 129,188,343 | 123,019,993 | 110,211,853 | 146,881,231 | 124,147,073 | 99,859,153 |
Diluted weighted-average shares of common stock outstanding (in shares) | 182,070,345 | 153,531,678 | 174,101,234 | 164,683,086 | 163,900,633 | 153,918,435 | 124,629,317 | 111,871,429 | 175,794,896 | 153,821,515 | 101,232,610 |
Earnings Per Share Attributable to common stockholders | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.16 | $ 0.38 | $ 0.45 | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.38 | $ 1.41 | $ 1.52 | $ 1.54 |
Diluted (in dollars per share) | $ 0.42 | $ 0.16 | $ 0.37 | $ 0.43 | $ 0.34 | $ 0.40 | $ 0.39 | $ 0.38 | $ 1.40 | $ 1.48 | $ 1.54 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Effect of dilutive securities - Convertible Notes (in shares) | 28,913,665 | 29,674,442 | |
RSU | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Unvested RSUs (in shares) | 1,836,210 | 1,612,676 | 1,373,457 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net interest income: | |||||||||||
Interest income from commercial mortgage loans | $ 85,595 | $ 81,136 | $ 77,458 | $ 78,286 | $ 75,275 | $ 71,179 | $ 65,141 | $ 52,114 | $ 322,475 | $ 263,709 | $ 158,632 |
Interest income from subordinate loans and other lending assets | 39,630 | 43,421 | 41,043 | 40,839 | 34,944 | 37,308 | 34,075 | 33,853 | 164,933 | 140,180 | 179,889 |
Interest expense | (43,779) | (39,341) | (33,511) | (36,295) | (32,413) | (31,007) | (28,437) | (22,740) | (152,926) | (114,597) | (78,057) |
Net interest income | 81,446 | 85,216 | 84,990 | 82,830 | 77,806 | 77,480 | 70,779 | 63,227 | 334,482 | 289,292 | 260,464 |
Operating expenses: | |||||||||||
General and administrative expenses | (5,533) | (5,839) | (6,574) | (6,151) | (3,977) | (5,843) | (5,652) | (4,998) | (24,097) | (20,470) | (20,725) |
Management fees to related party | (10,428) | (10,434) | (10,259) | (9,613) | (9,804) | (9,515) | (9,013) | (8,092) | (40,734) | (36,424) | (31,652) |
Total operating expenses | (15,961) | (16,273) | (16,833) | (15,764) | (13,781) | (15,358) | (14,665) | (13,090) | (64,831) | (56,894) | (52,377) |
Other income | 682 | 429 | 484 | 518 | 465 | 427 | 343 | 203 | 2,113 | 1,438 | 940 |
Provision for loan losses and impairments, net of reversals | 0 | (35,000) | 15,000 | 0 | (15,000) | 0 | (5,000) | 0 | (20,000) | (20,000) | (5,000) |
Realized loss on investments | 0 | 0 | (12,513) | 0 | 0 | 0 | 0 | 0 | (12,513) | 0 | (42,693) |
Foreign currency gain (loss) | 39,830 | (19,129) | (7,777) | 6,894 | (6,761) | (4,050) | (29,649) | 10,125 | 19,818 | (30,335) | 18,506 |
Loss on early extinguishment of debt | 0 | 0 | 0 | 0 | 0 | (2,573) | 0 | 0 | 0 | 2,573 | 1,947 |
Gain (loss) on foreign currency forwards | (43,044) | 24,153 | 11,186 | (6,720) | 10,261 | 6,291 | 33,538 | (11,032) | (14,425) | 39,058 | (19,180) |
Gain (loss) on interest rate swap | 8,950 | (10,307) | (13,113) | 0 | 0 | 0 | 0 | 0 | (43,046) | 29,345 | (11,523) |
Net income | 71,903 | 29,089 | 61,424 | 67,758 | 52,990 | 62,217 | 55,346 | 49,433 | 230,174 | 219,986 | 193,031 |
Preferred dividends | (3,386) | (3,385) | (4,919) | (6,835) | (6,835) | (6,836) | (6,834) | (6,835) | (18,525) | (27,340) | (36,761) |
Net income available to common stockholders | $ 68,517 | $ 25,704 | $ 56,505 | $ 60,923 | $ 46,155 | $ 55,381 | $ 48,512 | $ 42,598 | $ 211,649 | $ 192,646 | $ 156,270 |
Net income per share of common stock: | |||||||||||
Basic (in dollars per share) | $ 0.44 | $ 0.16 | $ 0.38 | $ 0.45 | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.38 | $ 1.41 | $ 1.52 | $ 1.54 |
Diluted (in dollars per share) | $ 0.42 | $ 0.16 | $ 0.37 | $ 0.43 | $ 0.34 | $ 0.40 | $ 0.39 | $ 0.38 | $ 1.40 | $ 1.48 | $ 1.54 |
Basic weighted-average shares of common stock outstanding (in shares) | 153,537,074 | 153,531,678 | 145,567,963 | 134,607,107 | 133,852,915 | 129,188,343 | 123,019,993 | 110,211,853 | 146,881,231 | 124,147,073 | 99,859,153 |
Diluted weighted-average shares of common stock outstanding (in shares) | 182,070,345 | 153,531,678 | 174,101,234 | 164,683,086 | 163,900,633 | 153,918,435 | 124,629,317 | 111,871,429 | 175,794,896 | 153,821,515 | 101,232,610 |
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 | 1 Months Ended | |
Feb. 13, 2020 | Dec. 31, 2019 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from loan repayments | $ 191.7 | |
Commercial Mortgage Portfolio Segment | ||
Subsequent Event [Line Items] | ||
Funded amount of mortgages | $ 49.2 | |
Commercial Mortgage Portfolio Segment | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Original face amount | 560.9 | |
Funded amount of mortgages | $ 438.6 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | $ 6,467,842 | |
Carrying value | 6,375,093 | $ 4,927,593 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Commercial Mortgage Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 5,422,108 | |
Carrying value | 5,326,967 | 3,878,981 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 1,045,734 | |
Carrying value | 1,048,126 | $ 1,048,612 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Urban Retail/United Kingdom | Urban Retail/United Kingdom, December 2023 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 331,425 | |
Carrying value | 328,145 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Urban Retail/Manhattan, NY | Urban Retail/Manhattan, NY September 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 318,106 | |
Carrying value | 315,561 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Hotel/Spain | Hotel/Spain August 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 244,321 | |
Carrying value | 241,674 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Healthcare/United Kingdom | Healthcare/United Kingdom October 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 229,183 | |
Carrying value | 226,761 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Industrial/Brooklyn, NY | Industrial/Brooklyn, NY February 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 197,000 | |
Carrying value | 195,940 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various | Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various 2020-2026 | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 46 | |
Principal Balance | $ 4,102,073 | |
Carrying value | 4,018,886 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 | |
Residential-for-sale: construction/Manhattan, NY | Residential-for-sale: construction/Manhattan, NY February 2021 | Subordinate Mortgage Portfolio Segment, Loans and Other Lending Assets In Excess Of 3% Of Carrying Amount Of Total Subordinate Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Principal Balance | 206,624 | |
Carrying value | 209,582 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various | Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various 2020-2028 | Subordinate Mortgage Portfolio Segment, Loans and Other Lending Assets Less Than 3% Of The Carrying Amount Of Total Subordinate Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 20 | |
Principal Balance | $ 839,110 | |
Carrying value | 838,544 | |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $ 0 | |
London Interbank Offered Rate (LIBOR) | Urban Retail/United Kingdom | Urban Retail/United Kingdom, December 2023 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 4.96% | |
London Interbank Offered Rate (LIBOR) | Urban Retail/Manhattan, NY | Urban Retail/Manhattan, NY September 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 4.75% | |
London Interbank Offered Rate (LIBOR) | Hotel/Spain | Hotel/Spain August 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 3.00% | |
London Interbank Offered Rate (LIBOR) | Healthcare/United Kingdom | Healthcare/United Kingdom October 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 4.56% | |
London Interbank Offered Rate (LIBOR) | Industrial/Brooklyn, NY | Industrial/Brooklyn, NY February 2024 | Commercial Mortgage Portfolio Segment, Loans In Excess Of 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 5.95% | |
London Interbank Offered Rate (LIBOR) | Residential-for-sale: construction/Manhattan, NY | Residential-for-sale: construction/Manhattan, NY February 2021 | Subordinate Mortgage Portfolio Segment, Loans and Other Lending Assets In Excess Of 3% Of Carrying Amount Of Total Subordinate Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 17.22% | |
Minimum | London Interbank Offered Rate (LIBOR) | Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various | Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various 2020-2026 | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans | ||
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 | London Interbank Offered Rate (LIBOR) | Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various | Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various 2020-2028 | Subordinate Mortgage Portfolio Segment, Loans and Other Lending Assets Less Than 3% Of The Carrying Amount Of Total Subordinate Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 7.00% | |
Maximum | London Interbank Offered Rate (LIBOR) | Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various | Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various 2020-2026 | Commercial Mortgage Portfolio Segment, Loans Less Than 3% Of The Carrying Amount Of Total Senior Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 9.20% | |
Maximum | London Interbank Offered Rate (LIBOR) | Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various | Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various 2020-2028 | Subordinate Mortgage Portfolio Segment, Loans and Other Lending Assets Less Than 3% Of The Carrying Amount Of Total Subordinate Loans | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Basis spread on variable interest rate | 19.20% |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate (Details 2) $ in Billions | Dec. 31, 2019USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Aggregate cost of mortgage loans on real estate | $ 6.4 |
Subordinate Mortgage and Other Lending Assets Portfolio Segment | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |
Prior liens | $ 4.3 |
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 | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 4,927,593 | $ 3,679,758 | |
Loan fundings | 3,435,457 | 2,350,865 | |
Loan repayments | (2,037,322) | (1,066,843) | |
Gain (loss) on foreign currency translation | 43,649 | (51,013) | |
Realized loss on investment, net of provision for loan loss reversal | 2,487 | 0 | |
Provision for loan losses | (35,000) | (20,000) | |
Deferred Fees | (46,275) | (34,066) | |
PIK interest, amortization of fees and other items | 84,504 | 68,892 | |
Balance at close of the year | 6,375,093 | 4,927,593 | |
Provision for loan losses and impairment, net of reversals | 35,000 | (20,000) | |
Commercial Mortgage and Subordinated Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Gain (loss) on foreign currency translation | 44,338 | ||
Realized loss on investment, net of provision for loan loss reversal | $ 12,500 | (12,513) | |
Financing receivable, credit loss, expense (reversal) | $ 15,000 | 15,000 | |
Provision for loan losses and impairment, net of reversals | 57,000 | 37,000 | |
Affiliated Entity | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Loan fundings | 34,600 | ||
Sale Of Mezzanine Loan | Commercial Mortgage and Subordinated Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Sale of mezzanine loan | (152,600) | ||
Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Provision for loan losses and impairment, net of reversals | 3,000 | 5,000 | |
Residential Condominium - Bethesda, MD | Commercial Mortgage and Subordinated Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Provision for loan losses and impairment, net of reversals | 13,000 | ||
Retail Center - Cincinnati, OH | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Loan and leases receivable, cost recovery | 1,400 | ||
Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Provision for loan losses and impairment, net of reversals | $ 32,000 | $ 15,000 |