Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Realty Finance Trust, Inc. | ||
Entity Central Index Key | 1,562,528 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 31,561,665 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans pledged as collateral | $ 426,155 | $ 0 | |
Allowance for loan losses | 888,000 | 570,000 | |
ASSETS | |||
Cash | 14,807,000 | 386,000 | |
Restricted cash | 5,366,000 | 68,000 | |
Commercial mortgage loans | [1],[2] | 1,124,201,000 | 456,884,000 |
Real estate securities, at fair value | 130,754,000 | 50,234,000 | |
Receivable for loan repayment | 1,307,000 | 0 | |
Accrued interest receivable | 5,360,000 | 2,866,000 | |
Prepaid expenses and other assets | 689,000 | 3,782,000 | |
Total assets | 1,282,484,000 | 514,220,000 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Collateralized loan obligations | 287,229,000 | 0 | |
Interest payable | 792,000 | 232,000 | |
Distributions payable | 5,552,000 | 2,623,000 | |
Accounts payable and accrued expenses | 6,805,000 | 2,385,000 | |
Due to affiliate | 4,327,000 | 2,035,000 | |
Total liabilities | $ 628,155,000 | $ 183,713,000 | |
Commitments and Contingencies | |||
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2015 and 2014 | $ 0 | $ 0 | |
Convertible stock (promote shares); $0.01 par value, 1,000 shares authorized, issued and outstanding as of December 31, 2015 and 2014 | 1,000 | 1,000 | |
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,385,280 and 15,472,192 shares issued and outstanding as of December 31, 2015 and 2014, respectively | 314,000 | 155,000 | |
Additional paid-in capital | 691,590,000 | 340,874,000 | |
Accumulated other comprehensive loss | (2,254,000) | (307,000) | |
Accumulated deficit | (35,322,000) | (10,216,000) | |
Total stockholders' equity | 654,329,000 | 330,507,000 | |
Total liabilities and stockholders' equity | 1,282,484,000 | 514,220,000 | |
Commercial Mortgage Loans | |||
ASSETS | |||
Real estate securities, at fair value | 130,754,000 | 50,234,000 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | 206,239,000 | 150,169,000 | |
Real Estate Securities | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | $ 117,211,000 | $ 26,269,000 | |
[1] | Includes $426,155 and $0 of loans pledged as collateral on collateralized loan obligations as of December 31, 2015 and 2014, respectively. | ||
[2] | Net of allowance for loan loss of $0.9 million and $0.6 million as of December 31, 2015 and 2014, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Convertible stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible stock, shares authorized (in shares) | 1,000 | 1,000 |
Convertible stock, shares issued (in shares) | 1,000 | 1,000 |
Convertible stock, shares outstanding (in shares) | 1,000 | 1,000 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 949,999,000 | 949,999,000 |
Common stock, shares issued (in shares) | 31,385,280 | 15,472,192 |
Common stock, shares outstanding (in shares) | 31,385,280 | 15,472,192 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income: | |||
Interest income | $ 59,393 | $ 15,466 | $ 775 |
Interest expense | 12,268 | 2,196 | 32 |
Net interest income | 47,125 | 13,270 | 743 |
Expenses: | |||
Acquisition fees | 7,916 | 4,386 | 0 |
Asset management and subordinated performance fee | 7,615 | 604 | 0 |
Professional fees | 4,997 | 1,050 | 71 |
Other expenses | 1,346 | 1,148 | 570 |
Loan loss provision | 318 | 570 | 0 |
Total expenses | 22,192 | 7,758 | 641 |
Gain on sale of loan | 0 | 112 | 0 |
Income before income taxes | 24,933 | 5,624 | 102 |
Income tax provision | 0 | 209 | 0 |
Net income | $ 24,933 | $ 5,415 | $ 102 |
Basic net income per share (in dollars per share) | $ 1.03 | $ 0.75 | $ 0.19 |
Diluted net income per share (in dollars per share) | $ 1.03 | $ 0.75 | $ 0.19 |
Basic weighted average shares outstanding (in shares) | 24,253,905 | 7,227,169 | 526,084 |
Diluted weighted average shares outstanding (in shares) | 24,259,169 | 7,232,559 | 530,096 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 24,933 | $ 5,415 | $ 102 |
Unrealized loss on available-for-sale securities | (1,947) | (297) | (10) |
Comprehensive income attributable to Realty Finance Trust, Inc. | $ 22,986 | $ 5,118 | $ 92 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Convertible Stock |
Balance, shares at Dec. 31, 2012 | 8,888 | 0 | ||||
Balance at Dec. 31, 2012 | $ 184 | $ 0 | $ 200 | $ 0 | $ (16) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 1,311,226 | |||||
Issuance of common stock | 32,207 | $ 13 | 32,194 | |||
Common stock repurchases (in shares) | (1,400) | |||||
Common stock repurchases | (35) | (35) | ||||
Common stock offering costs, commissions and dealer manager fees | (5,944) | (5,944) | ||||
Common stock issued through distribution reinvestment plan (in shares) | 7,956 | |||||
Common stock issued through distribution reinvestment plan | 189 | 189 | ||||
Share-based compensation (in shares) | 3,999 | |||||
Share-based compensation | 16 | 16 | ||||
Net income | 102 | 102 | ||||
Distributions declared | (691) | (691) | ||||
Other comprehensive loss | (10) | (10) | ||||
Balance, shares at Dec. 31, 2013 | 1,330,669 | 0 | ||||
Balance at Dec. 31, 2013 | 26,018 | $ 13 | 26,620 | (10) | (605) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 13,947,701 | |||||
Issuance of common stock | 347,012 | $ 140 | 346,872 | |||
Issuance of convertible stock (in shares) | 1,000 | |||||
Issuance of convertible stock | 1 | $ 1 | ||||
Common stock repurchases (in shares) | (19,355) | |||||
Common stock repurchases | (464) | (464) | ||||
Common stock offering costs, commissions and dealer manager fees | (37,206) | (37,206) | ||||
Common stock issued through distribution reinvestment plan (in shares) | 211,577 | |||||
Common stock issued through distribution reinvestment plan | 5,027 | $ 2 | 5,025 | |||
Share-based compensation (in shares) | 1,600 | |||||
Share-based compensation | 27 | 27 | ||||
Net income | 5,415 | 5,415 | ||||
Distributions declared | (15,026) | (15,026) | ||||
Other comprehensive loss | (297) | (297) | ||||
Balance, shares at Dec. 31, 2014 | 15,472,192 | 1,000 | ||||
Balance at Dec. 31, 2014 | 330,507 | $ 155 | 340,874 | (307) | (10,216) | $ 1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 15,428,195 | |||||
Issuance of common stock | 385,155 | $ 155 | 385,000 | |||
Common stock repurchases (in shares) | (360,719) | |||||
Common stock repurchases | (8,554) | $ (4) | (8,550) | |||
Common stock offering costs, commissions and dealer manager fees | $ (45,917) | (45,917) | ||||
Common stock issued through distribution reinvestment plan (in shares) | 1,062,479 | 842,946 | ||||
Common stock issued through distribution reinvestment plan | $ 20,161 | $ 8 | 20,153 | |||
Share-based compensation (in shares) | 2,666 | |||||
Share-based compensation | 30 | 30 | ||||
Net income | 24,933 | 24,933 | ||||
Distributions declared | (50,039) | (50,039) | ||||
Other comprehensive loss | (1,947) | (1,947) | ||||
Balance, shares at Dec. 31, 2015 | 31,385,280 | 1,000 | ||||
Balance at Dec. 31, 2015 | $ 654,329 | $ 314 | $ 691,590 | $ (2,254) | $ (35,322) | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 24,933 | $ 5,415 | $ 102 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Premium amortization and (discount accretion), net | (1,561) | (399) | (91) |
Accretion of deferred commitment fees | (1,068) | (166) | 0 |
Amortization of deferred financing costs | 2,819 | 479 | 0 |
Realized gain on sale of commercial mortgage loan | 0 | (112) | 0 |
Share-based compensation | 30 | 27 | 16 |
Loan loss provision | 318 | 570 | 0 |
Changes in assets and liabilities: | |||
Accrued interest receivable | (1,426) | (2,574) | (126) |
Prepaid expenses and other assets | 723 | (18) | (229) |
Accounts payable and accrued expenses | (1,707) | (276) | 1,090 |
Due to affiliate | 1,812 | (478) | 0 |
Interest payable | 560 | 217 | 14 |
Net cash provided by operating activities: | 25,433 | 2,685 | 776 |
Cash flows from investing activities: | |||
Origination and purchase of commercial mortgage loans | (793,731) | (429,941) | (30,787) |
Purchase of real estate securities | (85,463) | (45,597) | (5,015) |
Proceeds from sale of commercial mortgage loan | 0 | 3,692 | 0 |
Principal repayments received on commercial mortgage loans | 126,336 | 136 | 47 |
Principal repayments received on real estate securities | 3,010 | 73 | 0 |
Net cash used in investing activities | (749,848) | (471,637) | (35,755) |
Cash flows from financing activities: | |||
Proceeds from issuances of common stock | 385,203 | 345,944 | 32,207 |
Common stock repurchases | (2,555) | (464) | (35) |
Proceeds from issuances of convertible stock | 0 | 1 | 0 |
Payments of offering costs and fees related to common stock issuances | (45,357) | (35,598) | (4,991) |
Proceeds from issuance of collateralized loan obligations | 292,484 | 0 | 0 |
Borrowings on repurchase agreements - commercial mortgage loans | 423,538 | 150,169 | 0 |
Repayments of repurchase agreements - commercial mortgage loans | (367,468) | 0 | 0 |
Borrowings on repurchase agreements - real estate securities | 690,406 | 31,598 | 0 |
Repayments of repurchase agreements - real estate securities | (599,464) | (5,329) | 0 |
Borrowings on revolving line of credit with affiliate | 0 | 5,550 | 16,845 |
Repayments of revolving line of credit with affiliate | 0 | (12,855) | (9,540) |
Increase in restricted cash related to financing activities | (5,298) | (68) | 0 |
Advances from affiliate | 0 | 0 | 956 |
Payments of deferred financing costs | (5,704) | (2,196) | 0 |
Distributions paid | (26,949) | (7,592) | (286) |
Net cash provided by financing activities: | 738,836 | 469,160 | 35,156 |
Net change in cash | 14,421 | 208 | 177 |
Cash, beginning of period | 386 | 178 | 1 |
Cash, end of period | 14,807 | 386 | 178 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 159 | 50 | 0 |
Interest paid | 8,889 | 1,500 | 0 |
Supplemental disclosures of non-cash flow information: | |||
Distributions payable | 5,552 | 2,623 | 216 |
Common stock issued through distribution reinvestment plan | 20,161 | 5,027 | 189 |
Receivable for common stock issued | 0 | 1,068 | 122 |
Reclassification of deferred offering costs to additional paid-in capital | $ 0 | $ 0 | $ 941 |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Realty Finance Trust, Inc. (the "Company") was incorporated in Maryland on November 15, 2012 and conducts its operations to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the filing of its tax return for the taxable year ended December 31, 2013 . On May 14, 2013 , the Company commenced business operations after raising in excess of $2.0 million of equity, the amount required for the Company to release equity proceeds from escrow. Prior to January 2016 the Company was offering for sale a maximum of 80.0 million shares of common stock, $0.01 par value per share, on a reasonable best efforts basis, pursuant to a registration statement on Form S-11 (the "Offering") filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended. The Offering also covered the offer and sale of up to approximately 16.8 million shares of common stock pursuant to a distribution reinvestment plan (the "DRIP") under which common stockholders may elect to have their distributions reinvested in additional shares of the Company’s common stock. Effective January 2016, the Company terminated the Offering, deregistered 4,069 unsold shares from the Offering and reallocated 49.7 million unsold shares from the Offering to the DRIP offering. Prior to the NAV pricing date (as described below), we offered shares of our common stock in the Offering through Realty Capital Securities, LLC (the "Former Dealer Manager") at a per share price of up to $25.00 per share (including the maximum allowed to be charged for commissions and fees, subject to certain discounts as described in the Company's prospectus). Prior to the NAV pricing date, the Company has offered shares of its common stock through the DRIP, at a price equal to $23.75 per share, which is 95% of the primary offering price. As of close of business on November 10, 2015 (the "NAV pricing date"), pursuant to the net asset value ("NAV") as determined by the board of directors, the Company began offering shares of its common stock in the Offering at a price of up to $28.08 per share, inclusive of applicable commissions and dealer manager fees and through the DRIP at a price equal to $25.27 , the NAV per share. Beginning with the NAV pricing date, the per share price for shares in the DRIP will vary and will be equal to the Company's most recent reported NAV, divided by the number of shares of the Company's common stock outstanding as of such date the NAV was calculated. As of December 31, 2015 , the aggregate gross proceeds from the sale of common stock in the Offering, including DRIP was $789.8 million . The Company was formed to originate, acquire and manage a diversified portfolio of commercial real estate debt investments secured by properties located both within and outside of the United States. The Company may also invest in commercial real estate securities and commercial real estate properties. Commercial real estate debt investments may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Real estate securities may include commercial mortgage-backed securities ("CMBS"), senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs"). The Company has no direct employees. The Company has retained Realty Finance Advisors, LLC (the "Advisor") to manage the Company's affairs on a day-to-day basis. The Former Dealer Manager served as the dealer manager of the Offering. The Advisor and Former Dealer Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of American Realty Capital VIII, LLC (the "Sponsor"), as a result they are related parties and each of them has received or will receive compensation and fees for services related to the Offering, the investment and management of the Company's assets, the operations of the Company and the liquidation of the Company. The Former Dealer Manager served as the dealer manager of our primary offering and, together with certain of its affiliates, continued to provide us with various services through December 31, 2015. RCS Capital Corporation, the parent company of our Former Dealer Manager and certain of its affiliates that provided us with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of our Sponsor. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements of the Company are prepared on an accrual basis of accounting. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. Use of Estimates The preparation of financial statements in conformity with GAAP requires management 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 period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments and derivative financial instruments and hedging activities, as applicable. Acquisition Fees and Acquisition Expenses The Company incurs acquisition fees and acquisition expenses payable to the Advisor. The Company pays the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities. Acquisition fees paid and acquisition expenses reimbursed to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. Commercial Mortgage Loans Commercial mortgage loans are held for investment purposes and are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operation. Allowance for Loan Losses The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the loan loss provision on the Company's condensed consolidated statement of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component. General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged. Real Estate Securities On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such real estate securities will be recorded in the Company’s consolidated statement of operations. No such election has been made to date. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Impairment Analysis of Real Estate Securities Commercial real estate securities for which the fair value option has not been elected are periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security is considered impaired. Impairment of a security is considered other-than-temporary when (i) the Company has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Company does not expect to recover the entire amortized cost of the security. If the Company determines that an other-than-temporary impairment exists and a sale is likely, the impairment charge is recognized as an impairment of assets on the Company's consolidated statement of operations. If a sale is not expected, the portion of the impairment charge related to credit factors is recorded as an impairment of assets on the Company's consolidated statement of operations with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss. The Company did not have any other-than-temporary impairment for the years ended December 31, 2015 and 2014. Commercial real estate securities for which the fair value option has been elected are not evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations. No such election has been made to date. Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. Cash and Cash Equivalents Cash represents deposits with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds. Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements. Prepaid Expenses Prepaid expenses consists of deferred financing cost related to issuance of our revolving debt as well as certain subscription cost. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in the interest expense on the accompanying consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 4, 2015 based on our net asset value as of September 30, 2015 and was equal to $25.27 . When a stockholder requests a redemption and the redemption is approved, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP are recorded to equity in the consolidated balance sheet in the period distributions are declared. There have been 1,062,479 shares issued under the DRIP as of December 31, 2015 . Offering and Related Costs Offering and related costs include all expenses incurred in connection with the Offering. Offering costs (other than selling commissions and the dealer manager fee) of the Company may be paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity on the day the Company commenced its operations. Offering costs include all expenses incurred by the Company in connection with its Offering as of the balance sheet date presented. These costs include but are not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it may pay to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company to the extent organizational and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in the Offering do not exceed 2% of gross offering proceeds. The Advisor is required to reimburse the Company to the extent that organization and offering and related costs paid by the Company exceed 2% of gross offering proceeds. As a result, these costs are only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs do not exceed 12% of the gross Offering proceeds determined at the end of the Offering. See Note 9 - Related Party Transactions and Arrangements . Share-Based Compensation The Company has a share-based incentive plan for certain of the Company's directors, officers and employees of the Advisor and its affiliates. Share-based awards are measured at the grant date fair value and is recognized as compensation expense on a on a straight line basis over the related vesting period of the award. See Note 10 - Share-Based Compensation . Income Taxes The Company conducts its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its tax return for the taxable year ended December 31, 2013 . As a REIT, the Company generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders and a number of other organizational and operational requirements. However, even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income in addition to federal income and excise taxes on our undistributed income. Income tax of $0.2 million for the year ended December 31, 2014 represents the New York City Unincorporated Business Tax. The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2013 and concluded that there were no material uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. The Company has not recognized any interest and penalties related to tax uncertainties for the years ended December 31, 2015, 2014 and 2013. The estimated tax character of the $2.06 distributions per common share declared during 2015 was $1.31 ordinary income and $0.75 return of capital. Per Share Data The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive. Reportable Segments The Company conducts its business through the following segments: • The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities. See Note 13 - Segment Reporting for further information regarding the Company's segments. Reclassification and Presentation During the year ended December 31, 2014, the Company previously disclosed common stock repurchase of $0.5 million on the statement of cash flows within Proceeds from issuances of common stock. For the period ended December 31, 2015, the amount is presented separately within Common stock repurchases line within the statement of cash flows. The Company previously disclosed board and insurance expenses of $0.3 million and $0.2 million respectively for year ended December 31, 2014 and $0.2 million and $0.2 million for year ended December 31, 2013 within the statements of operations. The Company combined the board and insurance expenses of $0.2 million and $0.2 million , respectively for period ending December 31, 2015 within Other Expenses in the statement of operations. The change is applied retrospectively for all periods presented within the financial statements. Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all variable interest entities ("VIE") of which we are considered the primarily 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. Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments are consistent with the accounting guidance related to debt discounts. This guidance is effective for the first interim or annual period beginning after December 15, 2015 and to be applied retrospectively. Early adoption of ASU 2015-03 is permissible. The Company has adopted the ASU and presented the debt arising from issuance of our collateralized debt obligation net of $6.96 million the debt issuance cost on our statements of financial condition as of December 31, 2015. The Company did not have any collateralized debt obligation debt during years prior to December 31, 2015 as such, there were no impact to the Company’s prior year’s balance sheets. In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which amends ASC 835-30, Interest - Imputation of Interest. This update clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be deferred and presented as an asset and subsequently amortized ratably over the term of the revolving debt arrangement. The Company has adopted this ASU for presentation of debt issuance cost related to the Company’s Master Repurchase Agreements with Barclays Bank PLC and JPM Morgan Chase, N.A. The Company has deferred $0.6 million of debt issuance cost related to the Master Repurchase Agreements as of December 31, 2015 and is reported within Prepaid expenses and other assets line of the balance sheets. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. |
Commercial Mortgage Loans
Commercial Mortgage Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Commercial Mortgage Loans | Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loans by class (in thousands): December 31, 2015 December 31, 2014 Senior loans $ 894,075 $ 250,093 Mezzanine loans 221,014 191,863 Subordinated loans 10,000 15,498 Total gross carrying value of loans 1,125,089 457,454 Less: Allowance for loan losses 888 570 Total commercial mortgage loans, net $ 1,124,201 $ 456,884 The following table presents the activity in the Company's allowance for loan losses (in thousands): Year Ended December 31, 2015 2014 Beginning of period $ 570 $ — Provision for loan losses 318 570 Charge-offs — — Recoveries — — Ending allowance for loan loss $ 888 $ 570 As of December 31, 2015 and 2014 , the Company's commercial mortgage loan portfolio comprised of 77 and 38 loans, respectively. December 31, 2015 December 31, 2014 Par Value Percentage Par Value Percentage Office $ 307,876 27.2 % $ 217,480 47.1 % Multifamily 305,129 26.9 % 22,957 5.0 % Hospitality 171,752 15.1 % 74,566 16.2 % Retail 158,784 14.0 % 45,513 9.9 % Mixed Use 138,798 12.2 % 100,699 21.8 % Industrial 52,107 4.6 % — — % $ 1,134,446 100.0 % $ 461,215 100.0 % Credit Characteristics As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows: Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. All commercial mortgage loans are assigned an initial risk rating of 2.0 . As of December 31, 2015 and 2014 , the weighted average risk rating of loans was 2.0 and 2.0 . As of December 31, 2015 and 2014 , the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. For the year ended December 31, 2015 and 2014 , the activity in the Company's loan portfolio was as follows (in thousands): Year Ended December 31, 2015 2014 Balance at Beginning of Year $ 456,884 $ 30,832 Acquisitions and originations 793,731 429,941 Dispositions — (3,580 ) Principal repayments (127,643 ) (136 ) Discount accretion and premium amortization* 1,547 397 Provision for loan losses (318 ) (570 ) Balance at End of Year $ 1,124,201 $ 456,884 ________________________ * Includes amortization of capitalized acquisition fees and expenses. |
Real Estate Securities
Real Estate Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Real Estate Securities | Real Estate Securities The following is a summary of the Company's real estate securities, CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value December 31, 2015 16 4.71 % February 2019 $ 133,183 $ 130,754 December 31, 2014 8 3.28 % November 2017 50,447 50,234 The Company classified its CMBS investments as available-for-sale as of December 31, 2015 and 2014 . These investments are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income or loss. The following table shows the changes in fair value of the Company's CMBS investments (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2015 $ 133,008 $ — $ (2,254 ) $ 130,754 December 31, 2014 50,541 14 (321 ) 50,234 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Repurchase Agreements - Commercial Mortgage Loans The Company entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility") and Barclays Bank PLC (the "Barclays Repo Facility"). The JPM Repo Facility provides up to $150.0 million in advances. The Barclays Repo Facility provides up to $150.0 million in advances. Both, the JPM Repo Facility and Barclays Repo Facility are subject to adjustment. The Company expects to use advances from the JPM Repo Facility and the Barclays Repo Facility to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. The initial maturity date of the JPM Repo Facility is June 18, 2016, with a one-year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The Company exercised its first extension on the Barclays Repo Facility, and extended the maturity date to March 3, 2016, with three six-month extensions remaining at the Company’s option, which may be exercised upon the satisfaction of certain conditions. As of December 31, 2015, the Company is in compliance with all debt covenants. As of December 31, 2015 and 2014 , the Company had $84.3 million and $76.5 million outstanding under the JPM Repo Facility. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.25% to 4.50% , depending on the attributes of the purchased assets. As of December 31, 2015 and 2014 , the weighted average interest rate on advances was 3.11% and 3.84% respectively. The Company incurred $4.2 million and $1.2 million in interest expense on the JPM Repo Facility for the year ended December 31, 2015 and 2014 , respectively. As of December 31, 2015 and 2014 , the Company had $121.9 million and $73.7 million outstanding under the Barclays Repo Facility. Advances under the Barclays Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.00% to 2.50% , depending on the attributes of the purchased assets. As of December 31, 2015 and 2014 , the weighted average interest rate on advances was 2.39% and 2.16% respectively. The Company incurred $3.0 million and $0.3 million of interest expense on the Barclays Repo Facility for the year ended December 31, 2015 and 2014 , respectively. The JPM Repo Facility and the Barclay’s Repo Facility generally provide that in the event of a decrease in the value of our collateral, the lenders can demand additional collateral. Should the value of the Company’s collateral decrease, whether as a result of deteriorating credit quality, an increase in credit market spreads or otherwise, resulting margin calls may cause an adverse change in the Company’s liquidity position. Repurchase Agreements - Real Estate Securities The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 - 90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of December 31, 2015 and 2014 (in thousands). As of December 31, 2015 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 86,898 $ 108 $ 130,618 2.03 % 8 Citigroup Global Markets, Inc. 26,619 71 35,528 2.00 % 45 Wells Fargo Securities, LLC 3,694 3 4,925 1.67 % 13 Total/Weighted Average $ 117,211 $ 182 $ 171,071 2.01 % 17 ________________________ * Includes $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2015. As of December 31, 2014 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged Interest Rate Days to Maturity JP Morgan Securities LLC $ 18,528 $ 8 $ 23,843 1.44 % 20 Citigroup Global Markets, Inc. 4,010 2 5,015 1.46 % 20 Wells Fargo Securities, LLC 3,731 2 4,975 1.52 % 20 Total/Weighted Average $ 26,269 $ 12 $ 33,833 1.46 % 20 Collateralized Loan Obligation On October 19, 2015, RFT 2015-FL1 Issuer, Ltd. (the “Issuer”) and RFT 2015-FL1 Co-Issuer, LLC (the “Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an indenture with the Realty Finance Operating Partnership, L.P. (“RFT OP”), as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $ 350.2 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the Issuer also issued 78,188,494 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the Issuer and Co-Issuer are disregarded entities. The Notes are collateralized by interests in a pool of 28 mortgage assets having a total principal balance of $428.4 million (the “Mortgage Assets”) originated by a subsidiary of the Company. The sale of the Mortgage Assets to the Issuer is governed by a Mortgage Asset Purchase Agreement dated as of October 19, 2015 , between the Company and the Issuer. In connection with the securitization, the Issuer and Co-Issuer offered and sold the following classes of Notes: Class A, Class B, Class C Notes to third parties. A wholly owned subsidiary of the Company retained approximately $56.0 million of the total $76.0 million of Class C and all of the preferred equity in the Issuer. The retained Class C and the preferred equity as well as the related interest are eliminated in the Company's consolidated financial statements. The Company, as the holder of preferred equity in the Issuer, will absorb the first losses of the collateralized loan obligation, as such may have negative impact to our result of operations. The issuance of the CLO also results in increase in interest expense within the consolidated statement of operations due to increased interest expense. The following table represents the terms of the CLO issued. As of December 31, 2015 Facility Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date Tranche A $ 231,345 $ 231,345 1M LIBOR + 175 8/1/2030 Tranche B 42,841 42,841 1M LIBOR + 388 8/1/2030 Tranche C 76,044 20,000 1M LIBOR + 525 8/1/2030 $ 350,230 $ 294,186 ________________________ * Excludes $56,044 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2015. The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into our consolidated financial statements as of December 31, 2015 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLO because (i) the Company has 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. Assets December 31, 2015 December 31, 2014 Cash $ 5 $ — Commercial mortgage loans, held for investment, net 426,155 — Accrued interest receivable 1,048 — Total Assets $ 427,208 $ — Liabilities Notes payable (*) $ 348,269 $ — Accrued interest payable 513 — Total Liabilities $ 348,782 $ — ________________________ * Includes $55,769 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of December 31, 2015. Revolving Line of Credit with Affiliate On May 15, 2013, the Company entered into an unsecured $5.0 million revolving line of credit with an affiliate of the Sponsor (the "Revolver"). The Revolver bears interest at a per annum fixed rate of 3.25% and provides for quarterly interest payments. The Revolver matures in one year, subject to two successive extension terms by the Company of one year each. Principal may be drawn or repaid from time-to-time, in whole or in part, without premium or penalty and there are no unused facility fees. On July 17, 2013, the Company entered into an amendment to its Revolver. The amendment increased the aggregate financing available under the Revolver from $5.0 million to $10.0 million . The amendment did not change any of the other terms of the Revolver. The Company did not exercise the extension options provided under the terms of the Revolver and allowed it to mature on May 15, 2014. The Company did not have an outstanding balance on the date of maturity. The Company incurred $0 , $16,881 and $30,007 in interest expense on the Revolver for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table is a summary of the basic and diluted net income per share computation for the years ended December 31, 2015 , 2014 and 2013 , respectively: Years Ended December 31, 2015 2014 2013 Net income (in thousands) $ 24,933 $ 5,415 $ 102 Basic weighted average shares outstanding 24,253,905 7,227,169 526,084 Unvested restricted shares 5,264 5,390 4,012 Diluted weighted average shares outstanding 24,259,169 7,232,559 530,096 Basic net income per share $ 1.03 $ 0.75 $ 0.19 Diluted net income per share $ 1.03 $ 0.75 $ 0.19 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Stock | Common Stock As of December 31, 2015 and 2014 , the Company had 31,385,280 and 15,472,192 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP and unvested restricted shares. As of December 31, 2015 and 2014 , the Company had received net proceeds of approximately $755.5 million and $378.9 million , respectively, excluding shares issued pursuant to the DRIP and share-based compensation. On December 30, 2014, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary to its charter that reclassified 1,000 authorized but unissued shares of the Company’s common stock as shares of convertible stock and set the terms of such convertible shares. The Company then issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares will automatically convert to shares of common stock upon the first occurrence of any of the following triggering events: (i) the Company has paid total distributions on the then-outstanding shares of common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company’s charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company’s shares of common stock on a national securities exchange and (iii) the termination of the Company’s advisory agreement under certain circumstances. In general, but with certain exceptions as outlined in the articles supplementary, each convertible share will convert into a number of common shares equal to 1/1000 of the quotient of (a) the conversion product (the product of 0.15 times the amount, if any, by which (i) the sum of the enterprise value as of the date of the triggering event plus total distributions paid to the Company’s stockholders through the date of the triggering event exceeds (ii) the sum of the Company's stockholders’ invested capital plus a 6.0% return as of the date of the triggering event) divided by (b) the quotient of the enterprise value divided by the number of shares of the Company’s common stock outstanding (on an as-converted basis) on the date of the triggering event. The conversion product will be reduced by the amounts payable pursuant to the annual subordinated performance fee as realized appreciation in the Company’s assets during the time that the Advisor or one of its affiliates acts as the Company’s advisor. As of December 31, 2015, the Company did not incur any of the aforementioned trigger events. Distributions In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate federal income taxes. On May 13, 2013, the Company's board of directors authorized, and the Company declared a distribution, which is calculated based on stockholders of record each day during the applicable period at a rate of $ 0.00565068493 per day. The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The Board may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured. The Company distributed $47.1 million during the year ended December 31, 2015, comprised of $27.0 million in cash and $20.2 million in shares of common stock issued under the DRIP. The Company distributed $12.6 million during the year ended December 31, 2014, comprised of $7.6 million in cash and $5.0 million in shares of common stock issued under the DRIP. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans As of December 31, 2015 and 2014 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration December 31, 2015 December 31, 2014 2015 $ — $ 3,450 2016 890 26,701 2017 16,072 20,810 2018 104,428 7,169 2019 16,939 1,240 2020 — 4,175 $ 138,329 $ 63,545 Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time. |
Related Party Transactions and
Related Party Transactions and Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Related Party Transactions and Arrangements As of December 31, 2015 , an entity wholly-owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock. Fees Paid in Connection with the Offering The Former Dealer Manager received fees and compensation in connection with the sale of the Company’s common stock in the Offering. The Former Dealer Manager received a selling commission of up to 7.0% of the per share purchase price of the Company's offering proceeds before reallowance of commissions earned by soliciting dealers. In addition, the Former Dealer Manager receives up to 3.0% of the gross proceeds from the sale of shares, before reallowance to soliciting dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to such soliciting dealers. A soliciting dealer was permitted to elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such soliciting dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option was elected, the dealer manager fee was reduced to 2.5% of gross proceeds (not including selling commissions and Former Dealer Manager fees). The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. The Company is also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. Subsequently, effective February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the years ended December 31, 2015 , 2014 and 2013 , respectively, and the associated payable as of December 31, 2015 and 2014 , respectively (in thousands): Years Ended December 31, Payable as of December 31, 2015 2014 2013 2015 2014 Total commissions and fees incurred from the Former Dealer Manager $ 37,092 $ 33,190 $ 2,705 $ — $ 119 Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager $ 7,442 $ 2,627 $ 1,250 $ 480 $ 1,725 The payables as of December 31, 2015 and 2014 in the table above are included in "due to affiliate" on the Company's consolidated balance sheets. The fees incurred are recorded within additional paid in capital line in the consolidated balance sheets. The Company is responsible for organizational and offering costs from the ongoing Offering, excluding commissions and Former Dealer Manager fees, up to a maximum of 2.0% of gross proceeds from its ongoing Offering of common stock, measured at the end of the Offering. Organizational and offering costs in excess of the 2.0% cap as of the end of the Offering are the Advisor's responsibility. As of December 31, 2015 , organizational and offering costs exceeded 2.0% of cap of gross proceeds received from the Offering by $0.8 million . Fees Paid in Connection with the Operations of the Company The Advisor receives an acquisition fee of 1.0% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and 1.0% of the anticipated net equity funded by the Company to acquire real estate securities. The Company reimburses the Advisor for expenses incurred by the Advisor on behalf of the Company related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent fundings to investments in the Company's portfolio. During the years ended December 31, 2015 , 2014 and 2013 , acquisition fees of $7.9 million , $4.4 million and $0 , respectively, have been recognized in Acquisition fees line within the consolidated statement of operations. In addition, over the same periods, the Company capitalized $4.4 million , $2.2 million and $0.5 million , respectively, of acquisition expenses in Commercial mortgage loans line within the Company's consolidated balance sheets, which will be amortized over the life of each investment using the effective interest method. The Company will pay the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 0.75% of the cost of the Company's assets. Commencing on the NAV pricing date, the asset management fee is based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value consist of the market value of each portfolio investment as determined by the Advisor in accordance with the Company's valuation guidelines). During the year ended December 31, 2015 and 2014 , the Company incurred $4.6 million and $0.0 million in asset management fees, respectively, which are recorded in Asset management and subordinated performance fee within the statements of operations. During the year ended December 31, 2013 , $29,297 was earned but permanently waived by the Advisor. Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that funds from operations as defined by the National Association of Real Estate Investment Trusts ("FFO"), as adjusted, during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee was payable, was less than distributions declared during the same period. For purposes of this determination, FFO, as adjusted, is FFO adjusted to (i) include acquisition fees and acquisition expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) impairments and loan loss reserves on investments, if any (including commercial mortgage loans and other debt investments). FFO, as adjusted, is not the same as FFO. The Company will pay the Advisor, an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other event which results in the Company's return on stockholders’ capital exceeding 6.0% per annum. During the years ended December 31, 2015 , 2014 and 2013 , the Company incurred an annual subordinated performance fee of $3.0 million , $0.6 million and $0 , respectively, which is recorded within Asset management and subordinated performance fee within the consolidated statements of operations. Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. The Company prepaid the cost of $0.9 million associated with this agreement and amortizes the cost over the estimated life of the Offering into "Other expense" on the Company's consolidated statements of operations. The unamortized cost of less than $0.1 million associated with this agreement is included in "Prepaid expenses and other assets" on the Company's consolidated balance sheets as of December 31, 2015 and 2014. The table below depicts related party fees and reimbursements in connection with the operations of the Company for the years ended December 31, 2015 , 2014 and 2013 and the associated payable as of December 31, 2015 and 2014 (in thousands): Years Ended December 31, Payable as of December 31, 2015 2014 2013 2015 2014 Acquisition fees and acquisition expenses (*) $ 13,294 $ 6,578 $ 470 $ 55 $ — Advisory and investment banking fee 56 542 316 — — Asset management and subordinated performance fee 7,615 604 — 3,792 191 Total related party fees and reimbursements $ 20,965 $ 7,724 $ 786 $ 3,847 $ 191 ________________________ * Includes amortization of capitalized acquisition fees and expenses. The payables as of December 31, 2015 and 2014 in the table above are included in due to affiliate on the Company's consolidated balance sheets. In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor. The Advisor earned management fees of $29,297 for the year ended December 31, 2014 , and has permanently waived these fees. The Advisor has also permanently waived a portion of the acquisition fees and expenses earned on the acquisition of the Company's CMBS in the amount of $0.8 million , $0.6 million and $0.1 million for the years ended December 31, 2015 , 2014 and 2013, respectively. Subject to the limitations outlined below, the Company will reimburse the Advisor's cost of providing administrative services and personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or disposition fees. For the year ended December 31, 2015 , $0.6 million was reimbursed in connection with the operations of the Company. The Company did not have any reimbursements for years ended December 31, 2014 and 2013 . The Advisor must pay any expenses in which the Company's operating expenses as defined by North American Securities Administrators Association at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period, unless a majority of the Company's independent directors determine the excess expenses were justified based on unusual and nonrecurring factors. The Advisor at its election may also contribute capital to enhance the Company’s cash position for working capital and distribution purposes. Any contributed capital amounts are not reimbursable to the Advisor. Further, any capital contributions are made without any corresponding issuance of common or preferred shares. The Advisor did not contribute capital to enhance the Company's cash position for working capital or distribution purposes during the years ended December 31, 2015 , 2014 or 2013. Fees Paid in Connection with the Liquidation of Assets or Listing of the Company's Common Stock or Termination of the Advisory Agreement The Company will pay a disposition fee of 1.0% of the contract sales price of each commercial mortgage loans or other investment sold, including CMBS or CDOs issued by a subsidiary of the Company as part of a securitization transaction. The Company will not be obligated to pay a disposition fee upon the maturity, prepayment, workout, modification or extension of commercial real estate debt unless there is a corresponding fee paid by the borrower, in which case the disposition fee will be the lesser of (i) 1.0% of the principal amount of the debt prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership of a property as a result of a workout or foreclosure of a loan, it will pay a disposition fee upon the sale of such property. On December 30, 2014, the Company issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares issued to the Advisor will automatically convert to shares of the Company’s common stock upon the first to occur of any of the Triggering Events described in Note 7. During the years ended December 31, 2015, 2014 and 2013, no fees were paid in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement. The Company has also established a restricted share plan for the benefit of employees, directors, employees of the Advisor and its affiliates. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Restricted Share Plan The Company has an employee and director incentive restricted share plan (the "RSP"), which provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company or certain consultants to the Company, the Advisor and its affiliates. The total number of common shares granted under the RSP shall not exceed 5.0% of the Company’s authorized common shares pursuant to the Offering, and in any event, will not exceed 4.0 million shares (as such number may be adjusted for stock splits, stock distributions, combinations and similar events). Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient’s employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. The fair value of the restricted share awards are expensed over the vesting period of five years . The RSP also provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company’s board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder’s meeting. Restricted stock issued to independent directors will vest over a five years period with 20.0% of the granted shares vesting upon each of the first, second, third, fourth and fifth anniversaries of the applicable grant date. As of December 31, 2015 , the Company had granted 10,666 restricted shares to its independent directors, of which 2,399 were forfeited and 1,867 have vested, leaving a balance of 6,400 unvested restricted shares. As of December 31, 2014, the Company had granted 7,998 restricted shares to its independent directors, of which 2,399 were forfeited and 800 have vested, leaving a balance of 4,799 unvested restricted shares. Based on a share price of $22.50 , the compensation expense associated with the restricted share grants was $29,588 , $27,281 and $15,876 , for the years ended December 31, 2015 , 2014 and 2013, respectively and are included within Other expenses line on the statements of operations. Other Share-Based Compensation The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. During the year ended December 31, 2014 , 39 shares were issued to one of the Company's independent directors for services performed and compensation expense of $876 was incurred. The Company did not issue any common stock in lieu of cash to pay fees earned by the Company's directors for the years ended December 31, 2015 and 2013. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: • Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. • Level III - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar real estate securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all real CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of December 31, 2015 and 2014 , the Company received broker quotes on each CMBS investment used in determining the fair value and have been classified as Level II due to the observable nature of many of the market inputs. The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2015 and 2014 (in thousands): Total Level I Level II Level III December 31, 2015 Real estate securities $ 130,754 $ — $ 130,754 $ — December 31, 2014 Real estate securities 50,234 — 50,234 — A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between levels within fair value hierarchy during the years ended December 31, 2015 and 2014 . There are no financial instruments carried at fair value on a non-recurring basis as of December 31, 2015 and 2014 . The fair value of cash and cash equivalents and restricted cash measured using observable quoted market prices, or Level I inputs. The fair value of short-term financial instruments, such as accrued interest receivable, prepaid expenses and other assets, accounts payable and accrued expenses, distributions payable, interest payable and due to affiliate are approximated by their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs. The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of December 31, 2015 and 2014 (in thousands): Level Carrying Amount Fair Value December 31, 2015 Commercial mortgage loans Asset III $ 1,125,089 $ 1,138,841 Collateralized loan obligation Liability II 287,229 289,733 Repurchase agreements - loans Liability II 206,239 206,239 Repurchase agreements - real estate securities Liability II 117,211 117,211 December 31, 2014 Commercial mortgage loans Asset III 457,454 474,932 Repurchase agreements - loans Liability II 150,169 150,169 Repurchase agreements - real estate securities Liability II 26,269 26,269 The fair value of the commercial mortgage loans is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities The Company's consolidated balance sheets used a gross presentation of repurchase agreements. The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting , as of December 31, 2015 and 2014 (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount December 31, 2015 Commercial mortgage loans $ 206,239 $ — $ 206,239 $ 355,802 $ 5,000 $ — Real estate securities (*) 117,211 — 117,211 171,071 366 — December 31, 2014 Commercial mortgage loans 150,169 — 150,169 301,704 — — Real estate securities 26,269 — 26,269 33,833 68 — ________________________ * Includes $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Repurchase agreement-real estate securities line of the consolidated balance sheets as of December 31, 2015. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts its business through the following segments: • The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities. The following table represents the Company's operations by segment for the years ended December 31, 2015 , 2014 and 2013 (in thousands): December 31, 2015 Total Real Estate Debt Real Estate Securities Interest income $ 59,393 $ 56,040 $ 3,353 Interest expense 12,268 11,149 1,119 Net income 24,933 24,401 532 Total assets 1,282,484 1,150,858 131,626 December 31, 2014 Interest income 15,466 14,733 733 Interest expense 2,196 1,985 211 Realized gain on sale 112 112 — Net income 5,415 5,209 206 Total assets $ 514,220 $ 463,526 $ 50,694 December 31, 2013 Interest income 775 767 8 Interest expense 32 32 — Net income 102 94 8 Total assets $ 36,370 $ 31,357 $ 5,013 For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans, net and real estate securities, at fair value as the denominator and commercial mortgage loans, net and real estate securities, at fair value as the numerators, respectively. |
Economic Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2015 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company's common stock available for issue, transfer agency services, as well as other administrative responsibilities for the Company including accounting services, transaction management services and investor relations. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions: Distributions Paid On January 4, 2016 , the Company paid a distribution of $5.5 million to stockholders of record during the month of December 2015 . Approximately $3.2 million of the distribution was paid in cash, while $2.3 million was used to purchase 91,837 shares for those stockholders that chose to reinvest distributions through the DRIP. Share Repurchase Program On January 28, 2016, the Board unanimously approved an amended and restated share repurchase program (the “ SRP”) which became effective on February 28, 2016. Under the SRP, subject to certain conditions, stockholders that purchased shares of common stock of the Company or received their shares from the Company (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that the Company repurchase their shares of common stock of the Company so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of the Company’s common stock calculated by the Company’s advisor in accordance with the Company’s valuation guidelines (the “Estimated Per-Share NAV”) multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the Estimated Per-Share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any distribution reinvestment plan in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. The Company will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. As previously announced, the Company's Board unanimously determined to change the frequency with which the Company calculates its Estimated Per-Share NAV. Pursuant to the Board’s determination, calculation of the Company's Estimated Per-Share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, the Company's Estimated Per-Share NAV will be disclosed in a periodic report. The most recent calculation of the Company's Estimated Per-Share NAV approved by the Board occurred on November 4, 2015 based on its NAV as of September 30, 2015. Sponsor Transaction In January 2016, AR Global became the successor business to AR Capital, LLC and became the parent of the Company's current Sponsor. RCS Capital Corporation Bankruptcy RCS Capital Corporation, the parent company of the Former Dealer Manager and certain of its affiliates that provided us with services through December 31, 2015, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's sponsor. American National Stock Transfer, LLC Termination On February 10, 2016, AR Global received written notice from ANST, the Company's transfer agent and an affiliate of the Company's Former Dealer Manager,that it would wind down operations by the end of the month. ANST withdrew as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., its previous provider of sub-transfer agency services, to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). |
Schedule IV - Mortgage Loans o
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2015 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Face Carrying Interest Payment Maturity Description Property Type Amount Amount Rate Terms Date Senior 1 Retail $ 7,460 $ 7,430 1M LIBOR + 4.75% Interest Only 10/9/2017 Senior 2 Office 8,500 8,433 1M LIBOR + 4.65% Interest Only 6/9/2018 Senior 3 Mixed Use 11,000 10,967 1M LIBOR + 9.00% Interest Only 4/9/2016 Senior 4 Office 34,500 34,220 1M LIBOR + 5.25% Interest Only 12/9/2018 Senior 5 Office 11,750 11,694 1M LIBOR + 4.75% Interest Only 3/9/2019 Senior 6 Retail 14,600 14,537 1M LIBOR + 4.25% Interest Only 5/9/2018 Senior 7 Retail 11,636 11,595 1M LIBOR + 5.00% Interest Only 6/9/2017 Senior 8 Office 19,250 19,209 1M LIBOR + 4.55% Interest Only 12/9/2018 Senior 9 Multifamily 16,449 16,338 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 10 Multifamily 13,745 13,659 1M LIBOR + 4.50% Interest Only 5/9/2018 Senior 11 Office 12,000 11,967 1M LIBOR + 4.75% Interest Only 11/9/2019 Senior 12 Multifamily 21,100 21,021 1M LIBOR + 4.25% Interest Only 11/9/2018 Senior 13 Multifamily 8,229 8,174 1M LIBOR + 4.75% Interest Only 5/9/2018 Senior 14 Retail 9,850 9,799 1M LIBOR + 5.25% Interest Only 3/9/2018 Senior 15 Industrial 18,452 18,339 1M LIBOR + 4.25% Interest Only 7/9/2018 Senior 16 Hospitality 10,350 10,281 1M LIBOR + 5.50% Interest Only 7/9/2018 Senior 17 Office 27,490 27,303 1M LIBOR + 4.65% Interest Only 11/9/2017 Senior 18 Retail 4,725 4,682 1M LIBOR + 5.50% Interest Only 8/9/2018 Senior 19 Retail 18,350 18,178 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 20 Multifamily 39,200 39,053 1M LIBOR + 4.00% Interest Only 11/9/2018 Senior 21 Retail 7,500 7,434 1M LIBOR + 5.00% Interest Only 7/9/2018 Senior 22 Office 12,790 12,713 1M LIBOR + 5.00% Interest Only 1/9/2018 Senior 23 Hospitality 11,482 11,449 1M LIBOR + 5.75% Interest Only 10/9/2017 Senior 24 Hospitality 11,893 11,826 1M LIBOR + 5.30% Interest Only 7/9/2018 Senior 25 Mixed Use 26,623 26,484 1M LIBOR + 5.50% Interest Only 9/9/2019 Senior 26 Multifamily 17,560 17,488 1M LIBOR + 4.20% Interest Only 7/9/2018 Senior 27 Mixed Use 10,018 9,965 1M LIBOR + 5.10% Interest Only 1/9/2018 Senior 28 Multifamily 39,200 38,922 1M LIBOR + 4.25% Interest Only 8/9/2018 Senior 29 Retail 9,450 9,421 1M LIBOR + 4.90% Interest Only 9/9/2017 Senior 30 Industrial 33,655 33,625 1M LIBOR + 4.00% Interest Only 11/9/2018 Senior 31 Mixed Use 45,100 44,836 1M LIBOR + 5.50% Interest Only 7/9/2018 Senior 32 Multifamily 8,850 8,808 1M LIBOR + 4.70% Interest Only 2/9/2018 Senior 33 Office 24,500 24,345 1M LIBOR + 4.60% Interest Only 2/9/2019 Senior 34 Mixed Use 7,806 7,769 1M LIBOR + 4.75% Interest Only 2/9/2018 Senior 35 Hospitality 16,800 16,752 1M LIBOR + 4.90% Interest Only 4/9/2018 Senior 36 Office 35,000 34,926 1M LIBOR + 5.00% Interest Only 11/9/2018 Senior 37 Office 6,070 6,064 1M LIBOR + 4.90% Interest Only 8/9/2017 Senior 38 Retail 11,800 11,759 1M LIBOR + 4.75% Interest Only 11/9/2017 Senior 39 Retail 13,500 13,460 1M LIBOR + 5.00% Interest Only 4/9/2017 Senior 40 Retail 11,450 11,396 1M LIBOR + 4.50% Interest Only 2/9/2019 Senior 41 Multifamily 18,075 18,013 1M LIBOR + 4.50% Interest Only 12/9/2018 Senior 42 Mixed Use 31,250 31,144 1M LIBOR + 4.50% Interest Only 9/9/2017 Senior 43 Multifamily 24,000 23,854 1M LIBOR + 4.25% Interest Only 5/9/2018 Senior 44 Office 9,150 9,121 1M LIBOR + 5.50% Interest Only 11/9/2016 Senior 45 Multifamily 28,406 28,452 1M LIBOR + 3.85% Interest Only 11/9/2018 Senior 46 Multifamily 10,785 10,800 1M LIBOR + 3.95% Interest Only 11/9/2018 Senior 47 Multifamily 12,009 12,030 1M LIBOR + 3.95% Interest Only 11/9/2018 Senior 48 Multifamily 5,800 5,807 1M LIBOR + 4.05% Interest Only 11/9/2018 Senior 49 Office 28,000 27,921 1M LIBOR + 4.25% Interest Only 1/9/2019 Senior 50 Multifamily 13,792 13,731 1M LIBOR + 5.00% Interest Only 2/9/2018 Senior 51 Retail 26,500 26,474 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 52 Multifamily 10,450 10,407 1M LIBOR + 4.75% Interest Only 4/9/2018 Mezzanine 1 (1) Mixed Use 7,000 6,980 1M LIBOR + 10.50% Interest Only 7/9/2017 Mezzanine 2 (1) Office 5,000 5,066 11.0% Interest Only 1/6/2024 Mezzanine 3 (1) Hospitality 12,350 12,350 1M LIBOR + 10.00% Interest Only 7/9/2017 Mezzanine 4 (1) Hospitality 3,000 3,015 11.0% Interest Only 8/1/2018 Mezzanine 5 (1) Hospitality 11,000 11,005 1M LIBOR + 7.05% Interest Only 3/9/2016 Mezzanine 6 (1) Office 22,777 22,836 1M LIBOR + 7.25% Interest Only 8/9/2016 Mezzanine 7 (1) Office 7,000 7,025 12.0% Interest Only 5/1/2019 Mezzanine 8 (1) Hospitality 12,000 12,022 1M LIBOR + 9.00% Interest Only 9/9/2016 Mezzanine 9 (1) Retail 1,962 1,971 13.0% Interest Only 6/1/2024 Mezzanine 10 (1) Office 5,100 5,100 3M LIBOR + 10.00% Interest Only 10/31/2017 Mezzanine 11 (1) Hospitality 45,000 45,000 1M LIBOR + 10.00% Interest Only 5/9/2017 Mezzanine 12 (1) Multifamily 5,000 5,032 9.0% Interest Only 9/1/2018 Mezzanine 13 (1) Multifamily 3,480 3,496 9.5% Interest Only 7/1/2024 Mezzanine 14 (1) Office 10,000 10,005 1M LIBOR + 8.00% Interest Only 5/9/2016 Mezzanine 15 (1) Multifamily 4,000 4,053 12.0% Interest Only 1/6/2024 Mezzanine 16 (1) Office 10,000 9,490 10.0% Interest Only 9/6/2024 Mezzanine 17 (1) Office 10,000 9,079 1M LIBOR + 10.75% Interest Only 7/10/2018 Mezzanine 18 (1) Multifamily 5,000 5,005 1M LIBOR + 7.50% Interest Only 8/9/2016 Mezzanine 19 (1) Hospitality 7,140 6,543 10.0% Interest Only 11/1/2024 Mezzanine 20 (1) Hospitality 3,900 3,574 10.0% Interest Only 11/1/2024 Mezzanine 21 (1) Hospitality 12,510 11,463 10.0% Interest Only 11/1/2024 Mezzanine 22 (1) Hospitality 8,050 7,377 10.0% Interest Only 11/1/2024 Mezzanine 23 (1) Office 9,000 9,036 10.5% Interest Only 10/6/2019 Mezzanine 24 (1) Hospitality 6,277 4,491 5.5% 30 Year Amortization 5/6/2023 Mezzanine 25 (1) Retail 10,000 10,000 11.0% Interest Only 4/1/2024 $ 1,134,446 $ 1,125,089 ________________ (1) Subject to prior liens. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements and related footnotes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements of the Company are prepared on an accrual basis of accounting. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management 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 period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments and derivative financial instruments and hedging activities, as applicable. |
Acquisition Fees and Acquisition Expenses | Acquisition Fees and Acquisition Expenses The Company incurs acquisition fees and acquisition expenses payable to the Advisor. The Company pays the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities. Acquisition fees paid and acquisition expenses reimbursed to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. |
Commercial Mortgage Loans | Commercial Mortgage Loans Commercial mortgage loans are held for investment purposes and are anticipated to be held until maturity, and accordingly, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operation. Allowance for Loan Losses The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the loan loss provision on the Company's condensed consolidated statement of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component. General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged. |
Real Estate Securities | Real Estate Securities On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such real estate securities will be recorded in the Company’s consolidated statement of operations. No such election has been made to date. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Impairment Analysis of Real Estate Securities Commercial real estate securities for which the fair value option has not been elected are periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security is considered impaired. Impairment of a security is considered other-than-temporary when (i) the Company has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Company does not expect to recover the entire amortized cost of the security. If the Company determines that an other-than-temporary impairment exists and a sale is likely, the impairment charge is recognized as an impairment of assets on the Company's consolidated statement of operations. If a sale is not expected, the portion of the impairment charge related to credit factors is recorded as an impairment of assets on the Company's consolidated statement of operations with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss. The Company did not have any other-than-temporary impairment for the years ended December 31, 2015 and 2014. Commercial real estate securities for which the fair value option has been elected are not evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations. No such election has been made to date. |
Repurchase Agreements | Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 4, 2015 based on our net asset value as of September 30, 2015 and was equal to $25.27 . When a stockholder requests a redemption and the redemption is approved, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash represents deposits with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements. |
Share Repurchase Program | Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 4, 2015 based on our net asset value as of September 30, 2015 and was equal to $25.27 . When a stockholder requests a redemption and the redemption is approved, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. |
Distribution Reinvestment Plan | Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP are recorded to equity in the consolidated balance sheet in the period distributions are declared. |
Offering and Related Costs | Offering and Related Costs Offering and related costs include all expenses incurred in connection with the Offering. Offering costs (other than selling commissions and the dealer manager fee) of the Company may be paid by the Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity on the day the Company commenced its operations. Offering costs include all expenses incurred by the Company in connection with its Offering as of the balance sheet date presented. These costs include but are not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it may pay to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company to the extent organizational and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in the Offering do not exceed 2% of gross offering proceeds. The Advisor is required to reimburse the Company to the extent that organization and offering and related costs paid by the Company exceed 2% of gross offering proceeds. As a result, these costs are only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs do not exceed 12% of the gross Offering proceeds determined at the end of the Offering. |
Share-Based Compensation | Share-Based Compensation The Company has a share-based incentive plan for certain of the Company's directors, officers and employees of the Advisor and its affiliates. Share-based awards are measured at the grant date fair value and is recognized as compensation expense on a on a straight line basis over the related vesting period of the award. |
Income Taxes | Income Taxes The Company conducts its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its tax return for the taxable year ended December 31, 2013 . As a REIT, the Company generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders and a number of other organizational and operational requirements. However, even if we continue to qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income in addition to federal income and excise taxes on our undistributed income. Income tax of $0.2 million for the year ended December 31, 2014 represents the New York City Unincorporated Business Tax. The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2013 and concluded that there were no material uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. |
Per Share Data | Per Share Data The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive. |
Reportable Segments | Reportable Segments The Company conducts its business through the following segments: • The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03 "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 simplifies the presentation of debt issuance costs by amending the accounting guidance to require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability. The amendments are consistent with the accounting guidance related to debt discounts. This guidance is effective for the first interim or annual period beginning after December 15, 2015 and to be applied retrospectively. Early adoption of ASU 2015-03 is permissible. The Company has adopted the ASU and presented the debt arising from issuance of our collateralized debt obligation net of $6.96 million the debt issuance cost on our statements of financial condition as of December 31, 2015. The Company did not have any collateralized debt obligation debt during years prior to December 31, 2015 as such, there were no impact to the Company’s prior year’s balance sheets. In August 2015, FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which amends ASC 835-30, Interest - Imputation of Interest. This update clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be deferred and presented as an asset and subsequently amortized ratably over the term of the revolving debt arrangement. The Company has adopted this ASU for presentation of debt issuance cost related to the Company’s Master Repurchase Agreements with Barclays Bank PLC and JPM Morgan Chase, N.A. The Company has deferred $0.6 million of debt issuance cost related to the Master Repurchase Agreements as of December 31, 2015 and is reported within Prepaid expenses and other assets line of the balance sheets. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The guidance is not expected to have a significant impact on the Company's financial position, results of operations or cash flows. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: • Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. • Level III - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar real estate securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all real CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of December 31, 2015 and 2014 , the Company received broker quotes on each CMBS investment used in determining the fair value and have been classified as Level II due to the observable nature of many of the market inputs. |
Commercial Mortgage Loans (Tabl
Commercial Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Loans Receivable by Class | The following table presents the activity in the Company's allowance for loan losses (in thousands): Year Ended December 31, 2015 2014 Beginning of period $ 570 $ — Provision for loan losses 318 570 Charge-offs — — Recoveries — — Ending allowance for loan loss $ 888 $ 570 The following table is a summary of the Company's commercial mortgage loans by class (in thousands): December 31, 2015 December 31, 2014 Senior loans $ 894,075 $ 250,093 Mezzanine loans 221,014 191,863 Subordinated loans 10,000 15,498 Total gross carrying value of loans 1,125,089 457,454 Less: Allowance for loan losses 888 570 Total commercial mortgage loans, net $ 1,124,201 $ 456,884 As of December 31, 2015 and 2014 , the Company's commercial mortgage loan portfolio comprised of 77 and 38 loans, respectively. December 31, 2015 December 31, 2014 Par Value Percentage Par Value Percentage Office $ 307,876 27.2 % $ 217,480 47.1 % Multifamily 305,129 26.9 % 22,957 5.0 % Hospitality 171,752 15.1 % 74,566 16.2 % Retail 158,784 14.0 % 45,513 9.9 % Mixed Use 138,798 12.2 % 100,699 21.8 % Industrial 52,107 4.6 % — — % $ 1,134,446 100.0 % $ 461,215 100.0 % |
Loan Portfolio Assessment and Risk Ratings | As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows: Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. |
Real Estate Notes Receivable Rollforward | For the year ended December 31, 2015 and 2014 , the activity in the Company's loan portfolio was as follows (in thousands): Year Ended December 31, 2015 2014 Balance at Beginning of Year $ 456,884 $ 30,832 Acquisitions and originations 793,731 429,941 Dispositions — (3,580 ) Principal repayments (127,643 ) (136 ) Discount accretion and premium amortization* 1,547 397 Provision for loan losses (318 ) (570 ) Balance at End of Year $ 1,124,201 $ 456,884 ________________________ * Includes amortization of capitalized acquisition fees and expenses. |
Real Estate Securities (Tables)
Real Estate Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following is a summary of the Company's real estate securities, CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value December 31, 2015 16 4.71 % February 2019 $ 133,183 $ 130,754 December 31, 2014 8 3.28 % November 2017 50,447 50,234 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2015 and 2014 (in thousands): Total Level I Level II Level III December 31, 2015 Real estate securities $ 130,754 $ — $ 130,754 $ — December 31, 2014 Real estate securities 50,234 — 50,234 — |
Available-for-Sale Securities | The following table shows the changes in fair value of the Company's CMBS investments (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2015 $ 133,008 $ — $ (2,254 ) $ 130,754 December 31, 2014 50,541 14 (321 ) 50,234 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Master Repurchase Agreements | Below is a summary of the Company's MRAs as of December 31, 2015 and 2014 (in thousands). As of December 31, 2015 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 86,898 $ 108 $ 130,618 2.03 % 8 Citigroup Global Markets, Inc. 26,619 71 35,528 2.00 % 45 Wells Fargo Securities, LLC 3,694 3 4,925 1.67 % 13 Total/Weighted Average $ 117,211 $ 182 $ 171,071 2.01 % 17 ________________________ * Includes $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2015. As of December 31, 2014 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged Interest Rate Days to Maturity JP Morgan Securities LLC $ 18,528 $ 8 $ 23,843 1.44 % 20 Citigroup Global Markets, Inc. 4,010 2 5,015 1.46 % 20 Wells Fargo Securities, LLC 3,731 2 4,975 1.52 % 20 Total/Weighted Average $ 26,269 $ 12 $ 33,833 1.46 % 20 |
Schedule of Collateralized Loan Obligation Tranches | The following table represents the terms of the CLO issued. As of December 31, 2015 Facility Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date Tranche A $ 231,345 $ 231,345 1M LIBOR + 175 8/1/2030 Tranche B 42,841 42,841 1M LIBOR + 388 8/1/2030 Tranche C 76,044 20,000 1M LIBOR + 525 8/1/2030 $ 350,230 $ 294,186 ________________________ * Excludes $56,044 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2015. |
Schedule of Variable Interest Entities | The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into our consolidated financial statements as of December 31, 2015 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLO because (i) the Company has 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. Assets December 31, 2015 December 31, 2014 Cash $ 5 $ — Commercial mortgage loans, held for investment, net 426,155 — Accrued interest receivable 1,048 — Total Assets $ 427,208 $ — Liabilities Notes payable (*) $ 348,269 $ — Accrued interest payable 513 — Total Liabilities $ 348,782 $ — ________________________ * Includes $55,769 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of December 31, 2015. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Summary of the Basic and Diluted Earnings Per Share | The following table is a summary of the basic and diluted net income per share computation for the years ended December 31, 2015 , 2014 and 2013 , respectively: Years Ended December 31, 2015 2014 2013 Net income (in thousands) $ 24,933 $ 5,415 $ 102 Basic weighted average shares outstanding 24,253,905 7,227,169 526,084 Unvested restricted shares 5,264 5,390 4,012 Diluted weighted average shares outstanding 24,259,169 7,232,559 530,096 Basic net income per share $ 1.03 $ 0.75 $ 0.19 Diluted net income per share $ 1.03 $ 0.75 $ 0.19 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded Commitments Under Commercial Mortgage Loans | As of December 31, 2015 and 2014 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration December 31, 2015 December 31, 2014 2015 $ — $ 3,450 2016 890 26,701 2017 16,072 20,810 2018 104,428 7,169 2019 16,939 1,240 2020 — 4,175 $ 138,329 $ 63,545 |
Related Party Transactions an30
Related Party Transactions and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate | The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the years ended December 31, 2015 , 2014 and 2013 , respectively, and the associated payable as of December 31, 2015 and 2014 , respectively (in thousands): Years Ended December 31, Payable as of December 31, 2015 2014 2013 2015 2014 Total commissions and fees incurred from the Former Dealer Manager $ 37,092 $ 33,190 $ 2,705 $ — $ 119 |
Schedule of Offering Cost Reimbursements to Related Party | The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the years ended December 31, 2015 , 2014 and 2013 , respectively, and the associated payable as of December 31, 2015 and 2014 , respectively (in thousands): Years Ended December 31, Payable as of December 31, 2015 2014 2013 2015 2014 Total commissions and fees incurred from the Former Dealer Manager $ 37,092 $ 33,190 $ 2,705 $ — $ 119 Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager $ 7,442 $ 2,627 $ 1,250 $ 480 $ 1,725 |
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services | The table below depicts related party fees and reimbursements in connection with the operations of the Company for the years ended December 31, 2015 , 2014 and 2013 and the associated payable as of December 31, 2015 and 2014 (in thousands): Years Ended December 31, Payable as of December 31, 2015 2014 2013 2015 2014 Acquisition fees and acquisition expenses (*) $ 13,294 $ 6,578 $ 470 $ 55 $ — Advisory and investment banking fee 56 542 316 — — Asset management and subordinated performance fee 7,615 604 — 3,792 191 Total related party fees and reimbursements $ 20,965 $ 7,724 $ 786 $ 3,847 $ 191 ________________________ * Includes amortization of capitalized acquisition fees and expenses. |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following is a summary of the Company's real estate securities, CMBS (in thousands): Weighted Average Number of Investments Interest Rate Maturity Par Value Fair Value December 31, 2015 16 4.71 % February 2019 $ 133,183 $ 130,754 December 31, 2014 8 3.28 % November 2017 50,447 50,234 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2015 and 2014 (in thousands): Total Level I Level II Level III December 31, 2015 Real estate securities $ 130,754 $ — $ 130,754 $ — December 31, 2014 Real estate securities 50,234 — 50,234 — |
Fair Value by Balance Sheet Grouping | The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of December 31, 2015 and 2014 (in thousands): Level Carrying Amount Fair Value December 31, 2015 Commercial mortgage loans Asset III $ 1,125,089 $ 1,138,841 Collateralized loan obligation Liability II 287,229 289,733 Repurchase agreements - loans Liability II 206,239 206,239 Repurchase agreements - real estate securities Liability II 117,211 117,211 December 31, 2014 Commercial mortgage loans Asset III 457,454 474,932 Repurchase agreements - loans Liability II 150,169 150,169 Repurchase agreements - real estate securities Liability II 26,269 26,269 |
Offsetting Assets and Liabili32
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Offsetting Liabilities | The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting , as of December 31, 2015 and 2014 (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount December 31, 2015 Commercial mortgage loans $ 206,239 $ — $ 206,239 $ 355,802 $ 5,000 $ — Real estate securities (*) 117,211 — 117,211 171,071 366 — December 31, 2014 Commercial mortgage loans 150,169 — 150,169 301,704 — — Real estate securities 26,269 — 26,269 33,833 68 — ________________________ * Includes $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Repurchase agreement-real estate securities line of the consolidated balance sheets as of December 31, 2015. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table represents the Company's operations by segment for the years ended December 31, 2015 , 2014 and 2013 (in thousands): December 31, 2015 Total Real Estate Debt Real Estate Securities Interest income $ 59,393 $ 56,040 $ 3,353 Interest expense 12,268 11,149 1,119 Net income 24,933 24,401 532 Total assets 1,282,484 1,150,858 131,626 December 31, 2014 Interest income 15,466 14,733 733 Interest expense 2,196 1,985 211 Realized gain on sale 112 112 — Net income 5,415 5,209 206 Total assets $ 514,220 $ 463,526 $ 50,694 December 31, 2013 Interest income 775 767 8 Interest expense 32 32 — Net income 102 94 8 Total assets $ 36,370 $ 31,357 $ 5,013 |
Organization and Business Ope34
Organization and Business Operations - Narrative (Details) - USD ($) | May. 14, 2013 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 10, 2015 | Nov. 04, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from issuances of common stock | $ 2,000,000 | $ 385,203,000 | $ 345,944,000 | $ 32,207,000 | |||
Sale of stock | $ 80,000,000 | ||||||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Share price (usd per share) | $ 25 | ||||||
NAV per share | $ 28.08 | $ 25.27 | |||||
NAV per share through DRIP | $ 25.27 | ||||||
Common stock value | $ 789,800,000 | ||||||
Subsequent Event | Common Stock | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Unsold stock deregistered | 4,069 | ||||||
Distribution Reinvestment Plan | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Sale of stock | $ 16,800,000 | ||||||
Share price under DRIP (usd per share) | $ 23.75 | ||||||
Shares repurchased, percentage of original price per share | 95.00% | ||||||
Distribution Reinvestment Plan | Subsequent Event | Common Stock | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Sale of stock | $ 49,700,000 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2016 | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 10, 2015 | Nov. 04, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||||||
NAV per share | $ 28.08 | $ 25.27 | |||||
Shares issued under DRIP (in shares) | 1,062,479 | ||||||
Minimum distribution percentage to qualify for REIT taxation status | 90.00% | ||||||
Income tax expense | $ 0 | $ 209 | $ 0 | ||||
Dividends declared per share | $ 2.06 | ||||||
Ordinary income declared per share | 1.31 | ||||||
Return of capital declared per share | $ 0.75 | ||||||
Payments for repurchase of common stock | $ 2,555 | 464 | 35 | ||||
Revolving Credit Facility | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Debt issuance costs | 600 | ||||||
Secured Debt | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Debt issuance costs | $ 6,960 | ||||||
Advisor | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Offering costs reimbursable percentage | 2.00% | ||||||
Dealer Manager | Maximum | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Dealer fees and offering costs, percentage | 12.00% | ||||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchase price percent of NAV per share year one | 92.50% | ||||||
Repurchase price percent of NAV per share year two | 95.00% | ||||||
Repurchase price percent of NAV per share year three | 97.50% | ||||||
Repurchase price percent of NAV per share year four | 100.00% | ||||||
Repurchase limit percent per fiscal semester | 2.50% | ||||||
Repurchase limit percent per fiscal year | 5.00% | ||||||
Shares issued under DRIP (in shares) | 91,837 | ||||||
Board Expense | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reclassification and presentation adjustments | 300 | 200 | |||||
Insurance Expense | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reclassification and presentation adjustments | $ 200 | $ 200 | |||||
Other Expenses, Board Expense | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reclassification and presentation adjustments | $ 200 | ||||||
Other Expenses, Insurance Expense | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Reclassification and presentation adjustments | $ 200 | ||||||
Common Stock | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Shares issued under DRIP (in shares) | 842,946 | 211,577 | 7,956 | ||||
Reclassification and presentation adjustments | $ 500 |
Commercial Mortgage Loans - Nar
Commercial Mortgage Loans - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2015ratingloan | Dec. 31, 2014ratingloan | |
Receivables [Abstract] | ||
Number of mezzanine loans funded | loan | 77 | 38 |
Weighted average risk rating of loans | rating | 2 | 2 |
Commercial Mortgage Loans - Loa
Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | ||||
Senior loans | $ 894,075 | $ 250,093 | ||
Mezzanine loans | 221,014 | 191,863 | ||
Subordinated loans | 10,000 | 15,498 | ||
Total gross carrying value of loans | 1,125,089 | 457,454 | ||
Allowance for loan losses | 888 | 570 | $ 0 | |
Total commercial mortgage loans, net | [1],[2] | $ 1,124,201 | $ 456,884 | |
[1] | Includes $426,155 and $0 of loans pledged as collateral on collateralized loan obligations as of December 31, 2015 and 2014, respectively. | |||
[2] | Net of allowance for loan loss of $0.9 million and $0.6 million as of December 31, 2015 and 2014, respectively. |
Commercial Mortgage Loans - Pro
Commercial Mortgage Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 570 | $ 0 | |
Loan loss provision | 318 | 570 | $ 0 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | $ 888 | $ 570 | $ 0 |
Commercial Mortgage Loans - L39
Commercial Mortgage Loans - Loans Receivable Portfolio (Details) - First Mortgage - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 1,134,446 | $ 461,215 |
Percentage | 100.00% | 100.00% |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 307,876 | $ 217,480 |
Percentage | 27.20% | 47.10% |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 305,129 | $ 22,957 |
Percentage | 26.90% | 5.00% |
Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 171,752 | $ 74,566 |
Percentage | 15.10% | 16.20% |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 158,784 | $ 45,513 |
Percentage | 14.00% | 9.90% |
Mixed Use | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 138,798 | $ 100,699 |
Percentage | 12.20% | 21.80% |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 52,107 | $ 0 |
Percentage | 4.60% | 0.00% |
Commercial Mortgage Loans - Rea
Commercial Mortgage Loans - Real Estate Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at Beginning of Year | $ 456,884 | $ 30,832 | |
Acquisitions and originations | 793,731 | 429,941 | |
Dispositions | 0 | (3,580) | |
Principal repayments | (127,643) | (136) | |
Discount accretion and premium amortization | 1,547 | 397 | |
Provision for loan losses | (318) | (570) | $ 0 |
Balance at End of Year | $ 1,124,201 | $ 456,884 | $ 30,832 |
Real Estate Securities - Fair V
Real Estate Securities - Fair Value Measurements, Recurring and Nonrecurring (Details) - CMBS $ in Thousands | Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($)investment |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Investments | investment | 16 | 8 |
Weighted Average Interest Rate | 4.71% | 3.28% |
Par Value | $ 133,183 | $ 50,447 |
Fair Value | $ 130,754 | $ 50,234 |
Real Estate Securities - Availa
Real Estate Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 130,754 | $ 50,234 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 133,008 | 50,541 |
Unrealized Gains | 0 | 14 |
Unrealized Losses | (2,254) | (321) |
Fair Value | $ 130,754 | $ 50,234 |
Debt - Narrative (Details)
Debt - Narrative (Details) | May. 15, 2013USD ($)extension | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | Oct. 19, 2015USD ($)mortgage_asset$ / sharesshares | Jul. 17, 2013USD ($) |
Line of Credit Facility [Line Items] | ||||||
Preferred stock, shares issued (in shares) | shares | 0 | 0 | ||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||
Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Master Repurchase Agreements maturity (days) | 30 days | |||||
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Master Repurchase Agreements maturity (days) | 90 days | |||||
U.S. Bank National Association | ||||||
Line of Credit Facility [Line Items] | ||||||
Preferred stock, shares issued (in shares) | shares | 78,188,494 | |||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | |||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | |||||
Secured Debt | U.S. Bank National Association | ||||||
Line of Credit Facility [Line Items] | ||||||
Notes payable | $ 350,230,000 | $ 350,200,000 | ||||
Secured Debt | U.S. Bank National Association | Tranche C | ||||||
Line of Credit Facility [Line Items] | ||||||
Notes payable | 76,044,000 | |||||
Secured Debt | U.S. Bank National Association | Subsidiaries | Tranche C | ||||||
Line of Credit Facility [Line Items] | ||||||
Notes payable | 56,000,000 | |||||
Secured Debt | Collateralized Loan Obligations | U.S. Bank National Association | ||||||
Line of Credit Facility [Line Items] | ||||||
Collateral (mortgage asset) | mortgage_asset | 28 | |||||
Collateral amount | $ 428,400,000 | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Amount Outstanding | $ 117,211,000 | $ 26,269,000 | ||||
Interest Rate | 2.01% | 1.46% | ||||
Revolving Credit Facility | JPM Repo Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Unsecured line of credit | $ 150,000,000 | |||||
Amount Outstanding | 84,300,000 | $ 76,500,000 | ||||
Interest expense | $ 4,200,000 | $ 1,200,000 | ||||
Weighted average interest rate | 3.11% | 3.84% | ||||
Revolving Credit Facility | Barclays Repo Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Unsecured line of credit | $ 150,000,000 | |||||
Amount Outstanding | 121,900,000 | $ 73,700,000 | ||||
Interest expense | $ 3,000,000 | $ 300,000 | ||||
Weighted average interest rate | 2.39% | 2.16% | ||||
Revolving Credit Facility | AR Capital, LLC | ||||||
Line of Credit Facility [Line Items] | ||||||
Unsecured line of credit | $ 5,000,000 | $ 10,000,000 | ||||
Interest expense | $ 0 | $ 16,881 | $ 30,007 | |||
Interest Rate | 3.25% | |||||
Maturity period (years) | 1 year | |||||
Number of one year extensions | extension | 2 | |||||
LIBOR | Secured Debt | Tranche C | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate | 5.25% | |||||
LIBOR | Revolving Credit Facility | JPM Repo Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate | 2.25% | |||||
LIBOR | Revolving Credit Facility | JPM Repo Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate | 4.50% | |||||
LIBOR | Revolving Credit Facility | Barclays Repo Facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate | 2.00% | |||||
LIBOR | Revolving Credit Facility | Barclays Repo Facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest Rate | 2.50% |
Debt - Schedule of Master Repur
Debt - Schedule of Master Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Accrued Interest | $ 792 | $ 232 |
Real estate securities, at fair value | 130,754 | 50,234 |
Secured Debt | U.S. Bank National Association | Tranche C | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Real estate securities, at fair value | 56,044 | |
Revolving Credit Facility | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 117,211 | 26,269 |
Accrued Interest | 182 | 12 |
Collateral Pledged | $ 171,071 | $ 33,833 |
Interest Rate | 2.01% | 1.46% |
Days to Maturity | 17 days | 20 days |
Revolving Credit Facility | JP Morgan Securities LLC | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | $ 86,898 | $ 18,528 |
Accrued Interest | 108 | 8 |
Collateral Pledged | $ 130,618 | $ 23,843 |
Interest Rate | 2.03% | 1.44% |
Days to Maturity | 8 days | 20 days |
Revolving Credit Facility | Citigroup Global Markets, Inc. | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | $ 26,619 | $ 4,010 |
Accrued Interest | 71 | 2 |
Collateral Pledged | $ 35,528 | $ 5,015 |
Interest Rate | 2.00% | 1.46% |
Days to Maturity | 45 days | 20 days |
Revolving Credit Facility | Wells Fargo Securities, LLC | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | $ 3,694 | $ 3,731 |
Accrued Interest | 3 | 2 |
Collateral Pledged | $ 4,925 | $ 4,975 |
Interest Rate | 1.67% | 1.52% |
Days to Maturity | 13 days | 20 days |
Debt - Collateralized Loan Obli
Debt - Collateralized Loan Obligation by Tranche (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Oct. 19, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Real estate securities, at fair value | $ 130,754 | $ 50,234 | |
Secured Debt | Tranche A | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 1.75% | ||
Secured Debt | Tranche B | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 3.88% | ||
Secured Debt | Tranche C | LIBOR | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.25% | ||
U.S. Bank National Association | Secured Debt | |||
Debt Instrument [Line Items] | |||
Par Value Issued | $ 350,230 | $ 350,200 | |
Par Value Outstanding | 294,186 | ||
U.S. Bank National Association | Secured Debt | Tranche A | |||
Debt Instrument [Line Items] | |||
Par Value Issued | 231,345 | ||
Par Value Outstanding | 231,345 | ||
U.S. Bank National Association | Secured Debt | Tranche B | |||
Debt Instrument [Line Items] | |||
Par Value Issued | 42,841 | ||
Par Value Outstanding | 42,841 | ||
U.S. Bank National Association | Secured Debt | Tranche C | |||
Debt Instrument [Line Items] | |||
Par Value Issued | 76,044 | ||
Par Value Outstanding | 20,000 | ||
Real estate securities, at fair value | $ 56,044 |
Debt - Collateralized Loan Ob46
Debt - Collateralized Loan Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Oct. 19, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Variable Interest Entity [Line Items] | ||||||
Cash | $ 14,807 | $ 386 | $ 178 | $ 1 | ||
Commercial mortgage loans | [1],[2] | 1,124,201 | 456,884 | |||
Accrued interest receivable | 5,360 | 2,866 | ||||
Total assets | 1,282,484 | 514,220 | $ 36,370 | |||
Interest payable | 792 | 232 | ||||
Liabilities | 628,155 | 183,713 | ||||
Collateralized loan obligations | 287,229 | 0 | ||||
Secured Debt | U.S. Bank National Association | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable | 350,230 | $ 350,200 | ||||
Secured Debt | Tranche C | U.S. Bank National Association | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable | 76,044 | |||||
Collateralized loan obligations | 55,769 | |||||
Variable Interest Entity, Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash | 5 | 0 | ||||
Commercial mortgage loans | 426,155 | 0 | ||||
Accrued interest receivable | 1,048 | 0 | ||||
Total assets | 427,208 | 0 | ||||
Notes payable | 348,269 | 0 | ||||
Interest payable | 513 | 0 | ||||
Liabilities | $ 348,782 | $ 0 | ||||
[1] | Includes $426,155 and $0 of loans pledged as collateral on collateralized loan obligations as of December 31, 2015 and 2014, respectively. | |||||
[2] | Net of allowance for loan loss of $0.9 million and $0.6 million as of December 31, 2015 and 2014, respectively. |
Net Income Per Share - Summary
Net Income Per Share - Summary of the Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Net income | $ 24,933 | $ 5,415 | $ 102 |
Basic weighted average shares outstanding | 24,253,905 | 7,227,169 | 526,084 |
Unvested restricted shares | 5,264 | 5,390 | 4,012 |
Diluted weighted average shares outstanding | 24,259,169 | 7,232,559 | 530,096 |
Basic net income per share (in dollars per share) | $ 1.03 | $ 0.75 | $ 0.19 |
Diluted net income per share (in dollars per share) | $ 1.03 | $ 0.75 | $ 0.19 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) $ / shares in Units, $ in Millions | Dec. 30, 2014$ / sharesshares | May. 13, 2013$ / shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | Dec. 31, 2012shares |
Class of Stock [Line Items] | ||||||
Proceeds from issuance | $ | $ 755.5 | $ 378.9 | ||||
Cumulative capital investment return, percentage of benchmark | 6.00% | |||||
Convertible common stock, quotient | 0.15 | |||||
Minimum distribution percentage to qualify for REIT taxation status | 90.00% | |||||
Distribution percentage required to avoid paying federal income taxes | 100.00% | |||||
Common stock, dividends, per share per day, declared (in dollars per share) | $ / shares | $ 0.00565068493 | |||||
Total distributions | $ | $ 47.1 | 12.6 | ||||
Cash distributions | $ | 27 | 7.6 | ||||
Common stock issued under DRIP | $ | $ 20.2 | $ 5 | ||||
Convertible Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares outstanding (in shares) | shares | 1,000 | 1,000 | 0 | 0 | ||
Issuance of convertible stock (in shares) | shares | 1,000 | 1,000 | ||||
Advisor | Convertible Stock | ||||||
Class of Stock [Line Items] | ||||||
Issuance of convertible stock (in shares) | shares | 1,000 | |||||
Convertible stock, per share value | $ / shares | $ 1 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares outstanding (in shares) | shares | 31,385,280 | 15,472,192 | 1,330,669 | 8,888 |
Commitments and Contingencies49
Commitments and Contingencies (Details) - Unfunded Commitments Under Commercial Mortgage Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
2,015 | $ 0 | $ 3,450 |
2,016 | 890 | 26,701 |
2,017 | 16,072 | 20,810 |
2,018 | 104,428 | 7,169 |
2,019 | 16,939 | 1,240 |
2,020 | 0 | 4,175 |
Total | $ 138,329 | $ 63,545 |
Related Party Transactions an50
Related Party Transactions and Arrangements - Narrative (Details) - USD ($) | Dec. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 01, 2013 |
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding and owned by related party (in shares) | 31,385,280 | 15,472,192 | |||
Selling commission, organizational and offering costs, maximum | 2.00% | ||||
Proceeds received from the offering | $ 800,000 | ||||
Prepaid expenses and other assets | 689,000 | $ 3,782,000 | $ 900,000 | ||
Asset management and subordinated performance fee | $ 7,615,000 | $ 604,000 | $ 0 | ||
Disposition fee (percent) | 1.00% | ||||
Disposition fee, percent of principal amount of debt | 1.00% | ||||
Convertible Stock | |||||
Related Party Transaction [Line Items] | |||||
Issuance of convertible stock (in shares) | 1,000 | 1,000 | |||
Sponsor | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding and owned by related party (in shares) | 8,888 | ||||
Participating Broker Dealers | |||||
Related Party Transaction [Line Items] | |||||
Selling commission, percentage of offering proceeds | 7.50% | ||||
Selling commission, percentage of offering proceeds, first payment | 2.50% | ||||
Selling commission, percentage of offering proceeds, subsequent payments | 1.00% | ||||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Total commissions and fees incurred from the Dealer Manager | $ 20,965,000 | $ 7,724,000 | 786,000 | ||
Affiliated Entity | Advisor | Asset Management Fee | |||||
Related Party Transaction [Line Items] | |||||
Total commissions and fees incurred from the Dealer Manager | $ 4,600,000 | 0 | |||
Dealer Manager | |||||
Related Party Transaction [Line Items] | |||||
Selling commission, percentage of offering proceeds | 7.00% | ||||
Selling commission, percentage of offering proceeds, reallowance fee | 3.00% | ||||
Selling commission, percentage of offering proceeds, reduction fee | 2.50% | ||||
Total commissions and fees incurred from the Dealer Manager | $ 37,092,000 | 33,190,000 | 2,705,000 | ||
Prepaid expenses and other assets | $ 100,000 | 100,000 | |||
Advisor | |||||
Related Party Transaction [Line Items] | |||||
Real estate acquisition fee, percentage | 1.00% | ||||
Real estate acquisition fee, percentage reimbursement of acquisition costs, maximum exposure | 4.50% | ||||
Annual asset management fee, percentage based on the lower of total costs of assets or net asset value | 0.75% | ||||
Subordinated performance fee, percent that total return exceeds per year | 6.00% | ||||
Percent of excess total return | 15.00% | ||||
Maximum annual subordinated performance fee payable percent of total return | 10.00% | ||||
Asset management and subordinated performance fee | $ 3,000,000 | 600,000 | 0 | ||
Advisor expenses payable, percent of average invested assets | 2.00% | ||||
Advisor expenses payable, percent of net income | 25.00% | ||||
Advisor | Convertible Stock | |||||
Related Party Transaction [Line Items] | |||||
Issuance of convertible stock (in shares) | 1,000 | ||||
Convertible stock, per share value | $ 1 | ||||
Advisor | Fee to Acquire and Originate Real Estate Debt | |||||
Related Party Transaction [Line Items] | |||||
Transaction rate | 0.50% | ||||
Advisor | Administrative Service and Personnel Cost Reimbursements | |||||
Related Party Transaction [Line Items] | |||||
Total commissions and fees incurred from the Dealer Manager | $ 600,000 | 0 | 0 | ||
Advisor | Incurred | Acquisition and Related Expenses | |||||
Related Party Transaction [Line Items] | |||||
Total commissions and fees incurred from the Dealer Manager | 7,900,000 | 4,400,000 | 0 | ||
Advisor | Payable | Acquisition and Related Expenses | |||||
Related Party Transaction [Line Items] | |||||
Total commissions and fees incurred from the Dealer Manager | 4,400,000 | 2,200,000 | 500,000 | ||
Advisor | Waived | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees | 29,297 | 29,297 | |||
Acquisition related expenses and fees | $ 800,000 | $ 600,000 | $ 100,000 |
Related Party Transactions an51
Related Party Transactions and Arrangements - Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Payable to related party | $ 4,327 | $ 2,035 | |
Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Total commissions and fees incurred from the Dealer Manager | 37,092 | 33,190 | $ 2,705 |
Payable to related party | $ 0 | $ 119 |
Related Party Transactions an52
Related Party Transactions and Arrangements - Schedule of Offering Cost Reimbursements to Related Party (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Payable to related party | $ 4,327 | $ 2,035 | |
Fees and Expense Reimbursement, Stock Offering | Advisor and Dealer Manager | |||
Related Party Transaction [Line Items] | |||
Total compensation and reimbursement for services provided by the Advisor and affiliates | 7,442 | 2,627 | $ 1,250 |
Payable to related party | $ 480 | $ 1,725 |
Related Party Transactions an53
Related Party Transactions and Arrangements - Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Payable to related party | $ 4,327 | $ 2,035 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Total related party fees and reimbursements | 20,965 | 7,724 | $ 786 |
Payable to related party | 3,847 | 191 | |
Affiliated Entity | Acquisition fees and acquisition expenses | Nonrecurring Fees | |||
Related Party Transaction [Line Items] | |||
Total related party fees and reimbursements | 13,294 | 6,578 | 470 |
Payable to related party | 55 | 0 | |
Affiliated Entity | Advisory and investment banking fee | Nonrecurring Fees | |||
Related Party Transaction [Line Items] | |||
Total related party fees and reimbursements | 56 | 542 | 316 |
Payable to related party | 0 | 0 | |
Affiliated Entity | Asset management and subordinated performance fee | Nonrecurring Fees | |||
Related Party Transaction [Line Items] | |||
Total related party fees and reimbursements | 7,615 | 604 | $ 0 |
Payable to related party | $ 3,792 | $ 191 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 876 | ||
Shares issued for services (in shares) | 39 | ||
Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, price per share | $ 22.50 | ||
Restricted Shares and Unvested Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 10,666 | 7,998 | |
Restricted Unvested Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 6,400 | 4,799 | |
Forfeited Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 2,399 | 2,399 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 1,867 | 800 | |
Restricted Share Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted under restricted share plan, maximum percentage of total shares allowed | 5.00% | ||
Maximum shares allowed to be granted under restricted share plan (in shares) | 4,000,000 | ||
Vesting period for plan | 5 years | ||
Restricted Share Plan | Restricted Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in increments per annum | 20.00% | ||
Restricted Share Plan | Restricted Common Stock | Independent Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 5 years | ||
Stock option grants (in shares) | 1,333 | ||
Restricted Share Plan | Restricted Common Stock | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 29,588 | $ 27,281 | $ 15,876 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | $ 130,754 | $ 50,234 |
Real estate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | 130,754 | 50,234 |
Fair Value, Measurements, Recurring | Real estate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | 130,754 | 50,234 |
Level I | Fair Value, Measurements, Recurring | Real estate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | 0 | 0 |
Level II | Fair Value, Measurements, Recurring | Real estate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | 130,754 | 50,234 |
Level III | Fair Value, Measurements, Recurring | Real estate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans | [1],[2] | $ 1,124,201 | $ 456,884 |
Collateralized loan obligations | 287,229 | 0 | |
Commercial Mortgage Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | 206,239 | 150,169 | |
Real Estate Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | 117,211 | 26,269 | |
Carrying Amount | Level III | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans | 1,125,089 | 457,454 | |
Carrying Amount | Level II | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateralized loan obligations | 287,229 | ||
Carrying Amount | Level II | Commercial Mortgage Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | 206,239 | 150,169 | |
Carrying Amount | Level II | Real Estate Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | 117,211 | 26,269 | |
Fair Value | Level III | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Commercial mortgage loans | 1,138,841 | 474,932 | |
Fair Value | Level II | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Collateralized loan obligations | 289,733 | ||
Fair Value | Level II | Commercial Mortgage Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | 206,239 | 150,169 | |
Fair Value | Level II | Real Estate Securities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Repurchase agreements | $ 117,211 | $ 26,269 | |
[1] | Includes $426,155 and $0 of loans pledged as collateral on collateralized loan obligations as of December 31, 2015 and 2014, respectively. | ||
[2] | Net of allowance for loan loss of $0.9 million and $0.6 million as of December 31, 2015 and 2014, respectively. |
Offsetting Assets and Liabili57
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commercial mortgage loans | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | $ 206,239 | $ 150,169 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amount of Liabilities Presented on the Balance Sheet | 206,239 | 150,169 |
Financial Instruments | 355,802 | 301,704 |
Cash Collateral Pledged | 5,000 | 0 |
Net Amount | 0 | 0 |
Real Estate Securities | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 117,211 | 26,269 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amount of Liabilities Presented on the Balance Sheet | 117,211 | 26,269 |
Financial Instruments | 171,071 | 33,833 |
Cash Collateral Pledged | 366 | 68 |
Net Amount | 0 | $ 0 |
Real Estate Securities | Secured Debt | U.S. Bank National Association | Tranche C | ||
Offsetting Liabilities [Line Items] | ||
Net Amount of Liabilities Presented on the Balance Sheet | $ 56,044 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 59,393 | $ 15,466 | $ 775 |
Interest expense | 12,268 | 2,196 | 32 |
Realized gain on sale | 0 | 112 | 0 |
Net income | 24,933 | 5,415 | 102 |
Total assets | 1,282,484 | 514,220 | 36,370 |
Operating Segments | Real Estate Debt | |||
Segment Reporting Information [Line Items] | |||
Interest income | 56,040 | 14,733 | 767 |
Interest expense | 11,149 | 1,985 | 32 |
Realized gain on sale | 112 | ||
Net income | 24,401 | 5,209 | 94 |
Total assets | 1,150,858 | 463,526 | 31,357 |
Operating Segments | Real Estate Securities | |||
Segment Reporting Information [Line Items] | |||
Interest income | 3,353 | 733 | 8 |
Interest expense | 1,119 | 211 | 0 |
Realized gain on sale | 0 | ||
Net income | 532 | 206 | 8 |
Total assets | $ 131,626 | $ 50,694 | $ 5,013 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ in Thousands | Feb. 28, 2016 | Jan. 04, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | |||||
Distributions paid | $ 26,949 | $ 7,592 | $ 286 | ||
Cash distributions | 27,000 | 7,600 | |||
Common stock issued through distribution reinvestment plan | $ 20,161 | $ 5,027 | $ 189 | ||
Shares issued under DRIP (in shares) | 1,062,479 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Distributions paid | $ 5,500 | ||||
Cash distributions | 3,200 | ||||
Common stock issued through distribution reinvestment plan | $ 2,300 | ||||
Shares issued under DRIP (in shares) | 91,837 | ||||
Repurchase price percent of NAV per share year one | 92.50% | ||||
Repurchase price percent of NAV per share year two | 95.00% | ||||
Repurchase price percent of NAV per share year three | 97.50% | ||||
Repurchase price percent of NAV per share year four | 100.00% | ||||
Repurchase limit percent per fiscal semester | 2.50% | ||||
Repurchase limit percent per fiscal year | 5.00% |
Schedule IV - Mortgage Loans60
Schedule IV - Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | ||
Carrying Amount | $ 1,125,089 | $ 457,454 |
Office | Senior 2 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.65% | |
Office | Senior 4 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.25% | |
Office | Senior 5 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Office | Senior 8 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.55% | |
Office | Senior 11 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Office | Senior 17 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.65% | |
Office | Senior 22 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Office | Senior 33 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.60% | |
Office | Senior 36 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Office | Senior 37 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.90% | |
Office | Senior 44 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.50% | |
Office | Senior 49 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Office | Mezzanine 6 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 7.25% | |
Office | Mezzanine 10 | 3M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 10.00% | |
Office | Mezzanine 14 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 8.00% | |
Office | Mezzanine 17 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 10.75% | |
Hospitality | Senior 16 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.50% | |
Hospitality | Senior 23 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.75% | |
Hospitality | Senior 24 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.30% | |
Hospitality | Senior 35 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.90% | |
Hospitality | Mezzanine 3 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 10.00% | |
Hospitality | Mezzanine 5 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 7.05% | |
Hospitality | Mezzanine 8 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 9.00% | |
Hospitality | Mezzanine 11 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 10.00% | |
Retail | Senior 1 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Retail | Senior 6 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Retail | Senior 7 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Retail | Senior 14 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.25% | |
Retail | Senior 18 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.50% | |
Retail | Senior 19 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Retail | Senior 21 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Retail | Senior 29 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.90% | |
Retail | Senior 38 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Retail | Senior 39 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Retail | Senior 40 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.50% | |
Retail | Senior 51 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Industrial | Senior 15 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Industrial | Senior 30 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.00% | |
Mixed Use | Senior 3 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 9.00% | |
Mixed Use | Senior 25 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.50% | |
Mixed Use | Senior 27 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.10% | |
Mixed Use | Senior 31 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.50% | |
Mixed Use | Senior 34 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Mixed Use | Senior 42 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.50% | |
Mixed Use | Mezzanine 1 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 10.50% | |
Multifamily | Senior 9 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Multifamily | Senior 10 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.50% | |
Multifamily | Senior 12 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Multifamily | Senior 13 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Multifamily | Senior 20 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.00% | |
Multifamily | Senior 26 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.20% | |
Multifamily | Senior 28 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Multifamily | Senior 32 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.70% | |
Multifamily | Senior 41 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.50% | |
Multifamily | Senior 43 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.25% | |
Multifamily | Senior 45 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 3.85% | |
Multifamily | Senior 46 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 3.95% | |
Multifamily | Senior 47 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 3.95% | |
Multifamily | Senior 48 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.05% | |
Multifamily | Senior 50 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 5.00% | |
Multifamily | Senior 52 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 4.75% | |
Multifamily | Mezzanine 18 | 1M LIBOR | ||
Mortgage Loans on Real Estate [Line Items] | ||
Interest Rate | 7.50% | |
First Mortgage | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 1,134,446 | 461,215 |
Carrying Amount | 1,125,089 | |
First Mortgage | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 307,876 | 217,480 |
First Mortgage | Office | Senior 2 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 8,500 | |
Carrying Amount | 8,433 | |
First Mortgage | Office | Senior 4 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 34,500 | |
Carrying Amount | 34,220 | |
First Mortgage | Office | Senior 5 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,750 | |
Carrying Amount | 11,694 | |
First Mortgage | Office | Senior 8 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 19,250 | |
Carrying Amount | 19,209 | |
First Mortgage | Office | Senior 11 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 12,000 | |
Carrying Amount | 11,967 | |
First Mortgage | Office | Senior 17 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 27,490 | |
Carrying Amount | 27,303 | |
First Mortgage | Office | Senior 22 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 12,790 | |
Carrying Amount | 12,713 | |
First Mortgage | Office | Senior 33 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 24,500 | |
Carrying Amount | 24,345 | |
First Mortgage | Office | Senior 36 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 35,000 | |
Carrying Amount | 34,926 | |
First Mortgage | Office | Senior 37 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 6,070 | |
Carrying Amount | 6,064 | |
First Mortgage | Office | Senior 44 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 9,150 | |
Carrying Amount | 9,121 | |
First Mortgage | Office | Senior 49 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 28,000 | |
Carrying Amount | 27,921 | |
First Mortgage | Office | Mezzanine 2 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 5,000 | |
Carrying Amount | $ 5,066 | |
Interest Rate | 11.00% | |
First Mortgage | Office | Mezzanine 6 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 22,777 | |
Carrying Amount | 22,836 | |
First Mortgage | Office | Mezzanine 7 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,000 | |
Carrying Amount | $ 7,025 | |
Interest Rate | 12.00% | |
First Mortgage | Office | Mezzanine 10 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,100 | |
Carrying Amount | 5,100 | |
First Mortgage | Office | Mezzanine 14 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,000 | |
Carrying Amount | 10,005 | |
First Mortgage | Office | Mezzanine 16 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,000 | |
Carrying Amount | $ 9,490 | |
Interest Rate | 10.00% | |
First Mortgage | Office | Mezzanine 17 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | 9,079 | |
First Mortgage | Office | Mezzanine 23 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 9,000 | |
Carrying Amount | $ 9,036 | |
Interest Rate | 10.50% | |
First Mortgage | Hospitality | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 171,752 | 74,566 |
First Mortgage | Hospitality | Senior 16 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,350 | |
Carrying Amount | 10,281 | |
First Mortgage | Hospitality | Senior 23 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,482 | |
Carrying Amount | 11,449 | |
First Mortgage | Hospitality | Senior 24 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,893 | |
Carrying Amount | 11,826 | |
First Mortgage | Hospitality | Senior 35 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 16,800 | |
Carrying Amount | 16,752 | |
First Mortgage | Hospitality | Mezzanine 3 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 12,350 | |
Carrying Amount | 12,350 | |
First Mortgage | Hospitality | Mezzanine 4 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 3,000 | |
Carrying Amount | $ 3,015 | |
Interest Rate | 11.00% | |
First Mortgage | Hospitality | Mezzanine 5 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 11,000 | |
Carrying Amount | 11,005 | |
First Mortgage | Hospitality | Mezzanine 8 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 12,000 | |
Carrying Amount | 12,022 | |
First Mortgage | Hospitality | Mezzanine 11 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 45,000 | |
Carrying Amount | 45,000 | |
First Mortgage | Hospitality | Mezzanine 19 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,140 | |
Carrying Amount | $ 6,543 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 20 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 3,900 | |
Carrying Amount | $ 3,574 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 21 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 12,510 | |
Carrying Amount | $ 11,463 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 22 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 8,050 | |
Carrying Amount | $ 7,377 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 24 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 6,277 | |
Carrying Amount | $ 4,491 | |
Interest Rate | 5.50% | |
Payment Terms | 30 years | |
First Mortgage | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 158,784 | 45,513 |
First Mortgage | Retail | Senior 1 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,460 | |
Carrying Amount | 7,430 | |
First Mortgage | Retail | Senior 6 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 14,600 | |
Carrying Amount | 14,537 | |
First Mortgage | Retail | Senior 7 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,636 | |
Carrying Amount | 11,595 | |
First Mortgage | Retail | Senior 14 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 9,850 | |
Carrying Amount | 9,799 | |
First Mortgage | Retail | Senior 18 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 4,725 | |
Carrying Amount | 4,682 | |
First Mortgage | Retail | Senior 19 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 18,350 | |
Carrying Amount | 18,178 | |
First Mortgage | Retail | Senior 21 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,500 | |
Carrying Amount | 7,434 | |
First Mortgage | Retail | Senior 29 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 9,450 | |
Carrying Amount | 9,421 | |
First Mortgage | Retail | Senior 38 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,800 | |
Carrying Amount | 11,759 | |
First Mortgage | Retail | Senior 39 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 13,500 | |
Carrying Amount | 13,460 | |
First Mortgage | Retail | Senior 40 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,450 | |
Carrying Amount | 11,396 | |
First Mortgage | Retail | Senior 51 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 26,500 | |
Carrying Amount | 26,474 | |
First Mortgage | Retail | Mezzanine 9 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 1,962 | |
Carrying Amount | $ 1,971 | |
Interest Rate | 13.00% | |
First Mortgage | Retail | Mezzanine 25 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | $ 10,000 | |
Interest Rate | 11.00% | |
First Mortgage | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 52,107 | 0 |
First Mortgage | Industrial | Senior 15 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 18,452 | |
Carrying Amount | 18,339 | |
First Mortgage | Industrial | Senior 30 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 33,655 | |
Carrying Amount | 33,625 | |
First Mortgage | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 138,798 | $ 100,699 |
First Mortgage | Mixed Use | Senior 3 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 11,000 | |
Carrying Amount | 10,967 | |
First Mortgage | Mixed Use | Senior 25 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 26,623 | |
Carrying Amount | 26,484 | |
First Mortgage | Mixed Use | Senior 27 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,018 | |
Carrying Amount | 9,965 | |
First Mortgage | Mixed Use | Senior 31 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 45,100 | |
Carrying Amount | 44,836 | |
First Mortgage | Mixed Use | Senior 34 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,806 | |
Carrying Amount | 7,769 | |
First Mortgage | Mixed Use | Senior 42 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 31,250 | |
Carrying Amount | 31,144 | |
First Mortgage | Mixed Use | Mezzanine 1 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,000 | |
Carrying Amount | 6,980 | |
First Mortgage | Multifamily | Senior 9 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 16,449 | |
Carrying Amount | 16,338 | |
First Mortgage | Multifamily | Senior 10 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 13,745 | |
Carrying Amount | 13,659 | |
First Mortgage | Multifamily | Senior 12 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 21,100 | |
Carrying Amount | 21,021 | |
First Mortgage | Multifamily | Senior 13 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 8,229 | |
Carrying Amount | 8,174 | |
First Mortgage | Multifamily | Senior 20 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 39,200 | |
Carrying Amount | 39,053 | |
First Mortgage | Multifamily | Senior 26 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 17,560 | |
Carrying Amount | 17,488 | |
First Mortgage | Multifamily | Senior 28 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 39,200 | |
Carrying Amount | 38,922 | |
First Mortgage | Multifamily | Senior 32 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 8,850 | |
Carrying Amount | 8,808 | |
First Mortgage | Multifamily | Senior 41 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 18,075 | |
Carrying Amount | 18,013 | |
First Mortgage | Multifamily | Senior 43 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 24,000 | |
Carrying Amount | 23,854 | |
First Mortgage | Multifamily | Senior 45 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 28,406 | |
Carrying Amount | 28,452 | |
First Mortgage | Multifamily | Senior 46 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,785 | |
Carrying Amount | 10,800 | |
First Mortgage | Multifamily | Senior 47 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 12,009 | |
Carrying Amount | 12,030 | |
First Mortgage | Multifamily | Senior 48 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 5,800 | |
Carrying Amount | 5,807 | |
First Mortgage | Multifamily | Senior 50 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 13,792 | |
Carrying Amount | 13,731 | |
First Mortgage | Multifamily | Senior 52 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,450 | |
Carrying Amount | 10,407 | |
First Mortgage | Multifamily | Mezzanine 12 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 5,000 | |
Carrying Amount | $ 5,032 | |
Interest Rate | 9.00% | |
First Mortgage | Multifamily | Mezzanine 13 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 3,480 | |
Carrying Amount | $ 3,496 | |
Interest Rate | 9.50% | |
First Mortgage | Multifamily | Mezzanine 15 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 4,000 | |
Carrying Amount | $ 4,053 | |
Interest Rate | 12.00% | |
First Mortgage | Multifamily | Mezzanine 18 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,000 | |
Carrying Amount | $ 5,005 |