Franklin BSP Realty Trust (FBRT) 10-Q 13 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
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-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,732,229

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents		$ 49,207	$ 14,807
Restricted cash		6,498	5,366
Commercial mortgage loans, held for investment, net	[1]	1,126,350	1,124,201
Real estate securities, available for sale, at fair value		124,871	130,754
Receivable for loan repayment		3	1,307
Accrued interest receivable	[2]	5,160	5,360
Prepaid expenses and other assets		649	689
Total assets		1,312,738	1,282,484
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations		287,320	287,229
Interest payable	[3]	924	792
Distributions payable		5,530	5,552
Accounts payable and accrued expenses		1,340	6,805
Due to affiliate		4,403	4,327
Total liabilities		$ 663,549	$ 628,155
Commitments and Contingencies
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of March 31, 2016 and December 31, 2015		$ 0	$ 0
Convertible stock (promote shares); $0.01 par value, 1,000 shares authorized, issued and outstanding as of March 31, 2016 and December 31, 2015		1	1
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,645,633 and 31,385,280 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively		316	314
Additional paid-in capital		698,171	691,590
Accumulated other comprehensive loss		(7,218)	(2,254)
Accumulated deficit		(42,081)	(35,322)
Total stockholders' equity		649,189	654,329
Total liabilities and stockholders' equity		1,312,738	1,282,484
Commercial mortgage loans
ASSETS
Real estate securities, available for sale, at fair value		124,871	130,754
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements		243,583	206,239
Real estate securities
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements		$ 120,449	$ 117,211
[1]	Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.
[2]	Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.
[3]	Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Allowance		$ 1,053	$ 888
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)		31,645,633	31,385,280
Common stock, shares outstanding (in shares)		31,645,633	31,385,280
Loans pledged as collateral		$ 426,447	$ 426,155
Interest receivable	[1]	5,160	5,360
Interest payable	[2]	924	792
Variable Interest Entity, Primary Beneficiary
Interest receivable		1,076	1,048
Interest payable		$ 530	$ 513
[1]	Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.
[2]	Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income:
Interest income	$ 20,291	$ 9,605
Interest expense	4,768	1,933
Net interest income	15,523	7,672
Expenses:
Asset management and subordinated performance fee	3,010	362
Acquisition fees	157	1,032
Administrative services expenses	816	0
Professional fees	1,261	1,379
Other expenses	694	123
Loan loss provision	165	144
Total expenses	6,103	3,040
Income before income taxes	9,420	4,632
Income tax provision	0	0
Net income	$ 9,420	$ 4,632
Basic net income per share (in dollars per share)	$ 0.30	$ 0.27
Diluted net income per share (in dollars per share)	$ 0.30	$ 0.27
Basic weighted average shares outstanding (in shares)	31,548,897	17,279,713
Diluted weighted average shares outstanding (in shares)	31,555,011	17,284,086

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 9,420	$ 4,632
Unrealized (loss)/gain on available-for-sale securities	(4,964)	141
Comprehensive income attributable to Realty Finance Trust, Inc.	$ 4,456	$ 4,773

Consolidated Statements of Chan

Consolidated Statements of Changes In Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Convertible Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance, shares at Dec. 31, 2015		1,000	31,385,280
Balance at Dec. 31, 2015	$ 654,329	$ 1	$ 314	$ 691,590	$ (2,254)	$ (35,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock repurchases	(8)			(8)
Common stock issued under DRIP (in shares)			260,353
Common stock issued through distribution reinvestment plan	6,582		$ 2	6,580
Share-based compensation	9			9
Net income	9,420					9,420
Distributions declared	(16,179)					(16,179)
Other comprehensive loss	(4,964)				(4,964)
Balance, shares at Mar. 31, 2016		1,000	31,645,633
Balance at Mar. 31, 2016	$ 649,189	$ 1	$ 316	$ 698,171	$ (7,218)	$ (42,081)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 9,420	$ 4,632
Adjustments to reconcile net income to net cash provided by operating activities:
Premium amortization and (discount accretion), net	(575)	(189)
Accretion of deferred commitment fees	(382)	(145)
Amortization of deferred financing costs	541	479
Share-based compensation	9	6
Loan loss provision	165	144
Changes in assets and liabilities:
Accrued interest receivable	582	705
Prepaid expenses and other assets	(35)	859
Accounts payable and accrued expenses	155	(364)
Due to affiliates	76	(894)
Interest payable	132	25
Net cash provided by operating activities	10,088	5,258
Cash flows from investing activities:
Origination and purchase of commercial mortgage loans	(9,697)	(116,434)
Purchase of real estate securities	0	(8,016)
Principal repayments received on commercial mortgage loans	9,253	14,321
Principal repayments received on real estate securities	928	0
Net cash provided by (used in) investing activities	484	(110,129)
Cash flows from financing activities:
Proceeds from issuances of common stock	0	92,806
Common stock repurchases	(6,003)	(144)
Payments of offering costs and fees related to common stock issuances	0	(9,178)
Borrowings on repurchase agreements - commercial mortgage loans	85,614	38,376
Repayments of repurchase agreements - commercial mortgage loans	(48,270)	(6,238)
Borrowings on repurchase agreements - real estate securities	319,001	99,560
Repayments of repurchase agreements - real estate securities	(315,763)	(88,095)
Increase in restricted cash related to financing activities	(1,132)	0
Payments of deferred financing costs	0	(750)
Distributions paid	(9,619)	(4,697)
Net cash provided by financing activities	23,828	121,640
Net change in cash	34,400	16,769
Cash, beginning of period	14,807	386
Cash, end of period	49,207	17,155
Supplemental disclosures of cash flow information:
Income taxes paid	0	9
Interest paid	4,095	2,471
Supplemental disclosures of non-cash flow information:
Distributions payable	5,530	3,269
Common stock issued through distribution reinvestment plan	6,582	3,445
Receivable for common stock issued	$ 0	$ 3,006

Organization and Business Opera

Organization and Business Operations	3 Months Ended
	Mar. 31, 2016
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 taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through Realty Finance Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. Realty Finance Advisors, LLC is the Company's advisor (the "Advisor"). The Company is the sole general partner and directly or indirectly hold all of the units of limited partner interests in the OP. Additionally, the Advisor contributed $1,000 to the Company in exchange for 1,000 convertible shares of Realty Finance Trust, Inc. The convertible shares will automatically convert to shares of the Company's common stock upon the first occurrence of any of the following triggering events, (each a "Triggering Event"): (i) the Company has paid total distributions on the then-outstanding shares of the Company's 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 or (iii) the termination of the Company's advisory agreement under certain circumstances. The Company did not incur any of the aforementioned trigger events to date. 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. The Company is in business to originate, acquire and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. The Company also invests in commercial real estate securities. Commercial real estate debt 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 employees. The Company has retained the Advisor to manage the Company's affairs on a day-to-day basis. The Advisor is controlled by AR Global Investments, LLC ("AR Global"), the parent of American Realty Capital VIII, LLC (the "Sponsor"), as a result of which they are related parties and each of them has received or will receive compensation and fees for services related to the investment and management of the Company's assets, the operations of the Company and the liquidation of the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Accounting The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 11, 2016. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016 , other than the updates described below. Principles of Consolidation The Company consolidate all entities that the Company control through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is 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. The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, 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 ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. The accompanying consolidated financial statements include the accounts of a collateralized loan obligation ("CLO") issued and securitized by a wholly owned subsidiary of the Company. The Company has determined the CLO is a VIE of which the Company's subsidiary is the primary beneficiary. The Company has disclosed the assets and liabilities of the CLO on the face of the balance sheet in accordance with ASC 810 - Consolidation. 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 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. 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 12 - Segment Reporting for further information regarding the Company's segments. Recently Issued Accounting Pronouncements 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 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 was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the Company’s OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligation, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating impact of this new guidance, however, adoption of the guidance is not expected to have material impact to the Company's consolidated financial statements.

Commercial Mortgage Loans

Commercial Mortgage Loans	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Commercial Mortgage Loans	Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loan carrying values by class (in thousands): March 31, 2016 December 31, 2015 Senior loans $ 901,272 $ 894,075 Mezzanine loans 216,131 221,014 Subordinated loans 10,000 10,000 Total gross carrying value of loans 1,127,403 1,125,089 Less: Allowance for loan losses 1,053 888 Total commercial mortgage loans, net $ 1,126,350 $ 1,124,201 The following table presents the activity in the Company's allowance for loan losses (in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning of period $ 888 $ 570 Provision for loan losses 165 144 Charge-offs — — Recoveries — — Ending allowance for loan losses $ 1,053 $ 714 As of March 31, 2016 and December 31, 2015 , the Company's commercial mortgage loan portfolio comprised 76 and 77 loans, respectively. March 31, 2016 December 31, 2015 Loan Type Par Value Percentage Par Value Percentage Office $ 312,957 27.5 % $ 307,876 27.2 % Multifamily 302,436 26.6 % 305,129 26.9 % Hospitality 172,086 15.1 % 171,752 15.1 % Retail 159,476 14.0 % 158,784 14.0 % Mixed Use 136,925 12.1 % 138,798 12.2 % Industrial 52,313 4.7 % 52,107 4.6 % $ 1,136,193 100.0 % $ 1,134,446 100.0 % 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 loans. The loans are scored on a scale of 1 to 5 as follows: Investment 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 March 31, 2016 and December 31, 2015 , the weighted average risk rating of loans was 2.0 and 2.0 , respectively. As of March 31, 2016 and December 31, 2015 , the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. For the three months ended March 31, 2016 and March 31, 2015 , the activity in the Company's loan portfolio was as follows (in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Balance at Beginning of Year $ 1,124,201 $ 456,884 Acquisitions and originations 9,697 116,434 Dispositions — — Principal repayments (7,949 ) (14,321 ) Discount accretion and premium amortization* 566 205 Provision for loan losses (165 ) (144 ) Balance at End of Period $ 1,126,350 $ 559,058 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Real Estate Securities

Real Estate Securities	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 16 4.81 % January 2019 $ 132,255 $ 124,871 December 31, 2015 16 4.71 % February 2019 133,183 130,754 The Company classified its CMBS as available-for-sale as of March 31, 2016 and December 31, 2015 . 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 amortized cost, unrealized gains/losses and fair value of the Company's CMBS investments as of March 31, 2016 and December 31, 2015 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2016 $ 132,089 $ 8 $ (7,226 ) $ 124,871 December 31, 2015 133,008 — (2,254 ) 130,754 As of March 31, 2016 , the Company held 16 CMBS positions for an aggregate carrying value of $132.1 million , with an unrealized loss of $7.2 million , of which 7 positions had a total unrealized loss of $0.2 million for a period greater than 12 months.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
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 adjustments. 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 entered into an amendment of the Barclays Repo Facility, dated as of May 12, 2016 (the “Barclays Amendment”), pursuant to which the maturity date of the Barclays Repo Facility was extended to September 6, 2016, and the pricing rate for each purchased asset was increased by 0.50% per annum. There are two six months extensions remaining under the Barclays Repo Facility, which may be granted by the lender in its sole discretion upon the satisfaction of certain conditions. As of March 31, 2016, the Company is in compliance with all debt covenants. As of March 31, 2016 and December 31, 2015, the Company had $121.7 million and $84.3 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 4.5% , depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.7% and 3.1% , respectively. The Company incurred $0.8 million and $0.7 million in interest expense on the JPM Repo Facility for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016 and December 31, 2015, the Company had $121.9 million and $121.9 million outstanding under the Barclays Repo Facility. After giving effect to the Barclays Amendment, 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 2.5% to 3.0% , depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.5% and 2.4% , respectively. The Company incurred $0.8 million and $0.5 million of interest expense on the Barclays Repo Facility for the three months ended March 31, 2016 and 2015, respectively. The JPM Repo Facility and the Barclays Repo Facility generally provide that in the event of a decrease in the value of the Company's 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 to 90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of March 31, 2016 and December 31, 2015 (in thousands): Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity As of March 31, 2016 J.P. Morgan Securities LLC $ 90,897 $ 159 $ 137,487 2.25 % 1 Citigroup Global Markets, Inc. 26,177 81 34,559 2.32 % 44 Wells Fargo Securities, LLC 3,375 3 4,500 1.79 % 13 Total/Weighted Average $ 120,449 $ 243 $ 176,546 2.25 % 11 As of December 31, 2015 J.P. 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 $52,962 and $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 March 31, 2016 and December 31, 2015, respectively. 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 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 to third parties: Class A, Class B, Class C. 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 its related interest income and the preferred equity 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 CLO, which may have a negative impact to the Company's result of operations. The issuance of the CLO also results in an 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. Facility ($000s) Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date As of March 31, 2016 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 As of December 31, 2015 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 $52,962 and $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 March 31, 2016 and December 31, 2015, respectively. The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into the Company's consolidated financial statements as of March 31, 2016 and 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 ($000s) March 31, 2016 December 31, 2015 Cash $ 5 $ 5 Commercial mortgage loans, held for investment, net 426,447 426,155 Accrued interest receivable 1,076 1,048 Total Assets $ 427,528 $ 427,208 Liabilities Notes payable (1)(2) $ 343,096 $ 342,998 Accrued interest payable 530 513 Total Liabilities $ 343,626 $ 343,511 ________________________ (1) Includes $55,776 and $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 March 31, 2016 and December 31, 2015 , respectively. (2) The balance is presented net of deferred financing cost and discount of $7,134 and $7,232 as of March 31, 2016 and December 31, 2015 , respectively. The notes payable balance as of December 31, 2015 of $348,269 as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of deferred financing cost of $5,271 .

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 , respectively: Three Months Ended March 31, 2016 2015 Net income (in thousands) $ 9,420 $ 4,632 Basic weighted average shares outstanding 31,548,897 17,279,713 Unvested restricted shares 6,114 4,373 Diluted weighted average shares outstanding 31,555,011 17,284,086 Basic net income per share $ 0.30 $ 0.27 Diluted net income per share $ 0.30 $ 0.27

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Common Stock	Common Stock As of March 31, 2016 and December 31, 2015 , the Company had 31,645,633 and 31,385,280 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP and unvested restricted shares. As of March 31, 2016 and December 31, 2015 , the Company had received total proceeds of $755.5 million and $755.5 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 following triggering events (the "Triggering Event"): (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 or (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 March 31, 2016, the Triggering Event had not occurred. 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. In May 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $ 0.00565068493 per day, which is equivalent to $2.0625 per annum, per share of common stock . In March 2016 , the Company's board of directors ratified the existing distribution amount a change to the daily distribution amount equivalent to $2.0625 per annum and for calendar year 2016, affirmed a change to the daily distribution amount to $0.0056352459 per day per share of common stock, effective January 1, 2016, to accurately reflect that 2016 is a leap year. 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 $16.2 million during the three months ended March 31, 2016 , comprised of $9.6 million in cash and $6.6 million in shares of common stock issued under the DRIP. The Company distributed $47.1 million during the year ended December 31, 2015 , comprised of $26.9 million in cash and $20.2 million in shares of common stock issued under the DRIP. Share Repurchase Program The Company did not sell any equity securities that were not registered under the Securities Act during the three months ended March 31, 2016 . The Company's Board unanimously approved an amended and restated share repurchase program (the “SRP”), which became effective on February 28, 2016. The SRP enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of the Company's 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 the Company 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 the Company's common stock calculated by the Company's Advisor and approved by the Company's board of directors in accordance with the Company's 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. Any repurchase requests received during such fiscal semester will be paid at a price based on the Company's estimated per share NAV applicable on the last day of such fiscal semester, as described above. Due to these limitations, the Company cannot guarantee that the Company 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 the Company honors the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. 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. Calculations 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 the Company's net asset value as of September 30, 2015 and was equal to $25.27 . When a stockholder requests redemption and the redemption is approved, the Company 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. The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016 : Number of Requests Number of Shares Repurchased Average Price per Share Cumulative as of December 31, 2015 301 381,474 23.72 January 1 - January 31, 2016 — — — February 1 - February 29, 2016 — — — March 1 - March 31, 2016 — — — Cumulative as of March 31, 2016 301 381,474 23.72

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans As of March 31, 2016 and December 31, 2015 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration March 31, 2016 December 31, 2015 2016 $ 468 $ 890 2017 13,052 16,072 2018 99,079 104,428 2019 16,032 16,939 2020 — — 2021 — — Total $ 128,631 $ 138,329 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	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Related Party Transactions and Arrangements As of March 31, 2016 and December 31, 2015 , an entity wholly-owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock. Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the Company's Offering through December 31, 2015. American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager ("ANST"), provided the Company with transfer agency services through February 2016. RCS Capital Corporation, the parent company of the Company's Former Dealer Manager and certain of its affiliates that provided the Company 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 the Company's Sponsor. 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% 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 received up to 3% 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% 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 was 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., a third-party and 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 three months ended March 31, 2016 and 2015 , respectively, and the associated payable as of March 31, 2016 and December 31, 2015 , respectively (in thousands): Three Months Ended March 31, Payable as of 2016 2015 March 31, 2016 December 31, 2015 Total commissions and fees incurred from the Former Dealer Manager $ — $ 9,247 $ — $ — Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager $ — $ 1,962 $ 472 $ 480 The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" 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 March 31, 2016 and December 31, 2015, organizational and offering costs exceeded 2.0% of cap of gross proceeds received from the Offering by $0.8 million and $0.8 million , respectively which has been recorded in Additional Paid-In Capital of the Company's financial statements as the Advisor has not reimbursed the Company for these costs. 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 three months ended March 31, 2016 and 2015 , acquisition fees of $0.2 million and $1.0 million , respectively, have been recognized in the Acquisition fees within the consolidated statement of operations. In addition, for the three months ended March 31, 2015 the Company capitalized $0.7 million , 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 did not capitalize any acquisitions expenses for the three months ended March 31, 2016 . The Company pays 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 will consist of the market value of each portfolio investment as determined by the Advisor in accordance with the Company's valuation guidelines). During the three months ended March 31, 2016 and 2015 , the Company incurred $2.4 million and $0 in asset management fees, respectively, which are recorded in Asset management and subordinated performance fee within the statement of operations. 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 events which result in the Company's return on stockholders’ capital exceeding 6.0% per annum. During the three months ended March 31, 2016 and 2015 , the Company incurred an annual subordinated performance fee of $0.6 million and $0.4 million , respectively, which are recorded in Asset management and subordinated performance fee within the statement 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 an one-time $0.9 million associated with this agreement and amortizes the cost over the estimated life of the Offering into Other expenses on the Company's consolidated statements of operations. For period ending December 31, 2015 , the Company had approximately $6,000 of unamortized cost. There was no remaining unamortized cost as of March 31, 2016 and these services are no longer being provided. The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three months ended March 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in thousands): Three Months Ended March 31, Payable as of 2016 2015 March 31, 2016 December 31, 2015 Acquisition fees and expense and others (*) $ 157 $ 1,781 $ — $ 55 Administrative services and expenses 816 — — 187 — Advisory and investment banking fee 6 14 — — Asset management and subordinated performance fee 3,010 362 3,683 3,792 Other related party expenses 26 21 61 — Total related party fees and reimbursements $ 4,015 $ 2,178 $ 3,931 $ 3,847 ________________________ * Includes amortization of capitalized acquisition fees and expenses. The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" 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 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 $0.1 million for the three months ended March 31, 2015 . The Company did not purchase any CMBS positions during the three months ended March 31, 2016 as such did not incur any acquisition fees and expenses for CMBS purchases. 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 three months ended March 31, 2016 , the Company reimbursed the Advisor $0.8 million of administrative costs in connection with the operations of the Company. The Company did not incur such expense for the three months ended March 31, 2015 . 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 for such expense year. 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 loan 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 three months ended March 31, 2016 and 2015 , 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 , 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 sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands): Total Level I Level II Level III March 31, 2016 Real estate securities $ 124,871 $ — $ 124,871 $ — December 31, 2015 Real estate securities 130,754 — 130,754 — 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. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no transfers between levels within fair value hierarchy during the three months ended March 31, 2016 and 2015 . There are no financial instruments carried at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015. The fair value of cash and cash equivalents and restricted cash are 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, borrowings under repurchase agreements and due to affiliate approximate 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 March 31, 2016 and December 31, 2015 (in thousands): Level Carrying Amount Fair Value March 31, 2016 Commercial mortgage loans Asset III $ 1,127,403 $ 1,133,935 Collateralized loan obligation Liability II 287,320 289,080 December 31, 2015 Commercial mortgage loans Asset III 1,125,089 1,138,841 Collateralized loan obligation Liability II 287,229 289,733 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. The Company received broker quotes for each tranche of CLO to determine the fair value of the debt.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	3 Months Ended
	Mar. 31, 2016
Offsetting [Abstract]
Offsetting Assets and Liabilities	Offsetting Assets and Liabilities The Company's consolidated balance sheets used a gross presentation of repurchase agreements and collateral pledged. 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 March 31, 2016 and December 31, 2015 , respectively (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 as Collateral Pledged Cash Collateral Pledged Net Amount March 31, 2016 Commercial mortgage loans $ 243,583 $ — $ 243,583 $ 377,231 $ 5,000 $ — Real estate securities (*) 120,449 — 120,449 179,628 1,498 — December 31, 2015 Commercial mortgage loans 206,239 — 206,239 355,802 5,000 — Real estate securities (*) 117,211 — 117,211 171,071 366 — * Includes $56,044 and $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 March 31, 2016 and December 31, 2015, respectively.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 Total Real Estate Debt Real Estate Securities Interest income $ 20,291 $ 18,676 $ 1,615 Interest expense 4,768 4,091 677 Net income 9,420 9,059 361 Three Months Ended March 31, 2015 Interest income 9,605 9,196 409 Interest expense 1,933 1,804 129 Net income 4,632 4,546 86 The following table represents the Company's total assets by segment as of March 31, 2016 and December 31, 2015 (in thousands): As of March 31, 2016 Total Real Estate Debt Real Estate Securities Total Assets $ 1,312,738 $ 1,186,001 $ 126,737 As of December 31, 2015 Total Assets 1,282,484 1,150,858 131,626 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.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q 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 April 1, 2016 , the Company paid a distribution of $5.5 million to stockholders of record during the month of March 2016 . The Company paid $3.3 million of the distribution in cash, while $2.2 million was used to purchase 86,595 shares through the DRIP. Formation of Special Committee On May 6, 2016, the Company announced that the Company’s Board, with the unanimous agreement of all directors, had recently formed a special committee, consisting exclusively of independent directors, to explore a potential strategic transaction with a related party. The Board granted the special committee the exclusive authority to consider, review, evaluate and, if appropriate, negotiate a strategic transaction on behalf of the Company. In addition, the Board granted the special committee the authority, when considering such strategic transaction, to solicit expressions of interest or other proposals for, and to consider, any alternative transactions. These transactions may include a possible sale or merger with one or more related or unrelated entities, listing the Company’s shares on a national exchange or the sale of assets. The special committee has retained special legal counsel and is in the process of engaging a leading real estate investment banking group as financial advisor. To date, the special committee has not engaged in any substantive discussions or negotiations related to the terms of a transaction with this related party or any other party. In addition, there has not been any exchange of information or any entry into non-disclosure agreements with any party. There are no assurances that the consideration of any strategic alternative will result in a transaction. The Company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure is appropriate or required.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting	Basis of Accounting The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 11, 2016. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016 , other than the updates described below.
Principles of Consolidation	Principles of Consolidation The Company consolidate all entities that the Company control through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is 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. The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, 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 ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. The accompanying consolidated financial statements include the accounts of a collateralized loan obligation ("CLO") issued and securitized by a wholly owned subsidiary of the Company. The Company has determined the CLO is a VIE of which the Company's subsidiary is the primary beneficiary. The Company has disclosed the assets and liabilities of the CLO on the face of the balance sheet in accordance with ASC 810 - Consolidation.
Allowance for Loan Losses	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 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.
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.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements 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 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 was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the Company’s OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligation, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating impact of this new guidance, however, adoption of the guidance is not expected to have material impact to the Company's consolidated financial statements.

Commercial Mortgage Loans (Tabl

Commercial Mortgage Loans (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Summary of the company's loans receivable by class	The following table presents the activity in the Company's allowance for loan losses (in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning of period $ 888 $ 570 Provision for loan losses 165 144 Charge-offs — — Recoveries — — Ending allowance for loan losses $ 1,053 $ 714 As of March 31, 2016 and December 31, 2015 , the Company's commercial mortgage loan portfolio comprised 76 and 77 loans, respectively. March 31, 2016 December 31, 2015 Loan Type Par Value Percentage Par Value Percentage Office $ 312,957 27.5 % $ 307,876 27.2 % Multifamily 302,436 26.6 % 305,129 26.9 % Hospitality 172,086 15.1 % 171,752 15.1 % Retail 159,476 14.0 % 158,784 14.0 % Mixed Use 136,925 12.1 % 138,798 12.2 % Industrial 52,313 4.7 % 52,107 4.6 % $ 1,136,193 100.0 % $ 1,134,446 100.0 % The following table is a summary of the Company's commercial mortgage loan carrying values by class (in thousands): March 31, 2016 December 31, 2015 Senior loans $ 901,272 $ 894,075 Mezzanine loans 216,131 221,014 Subordinated loans 10,000 10,000 Total gross carrying value of loans 1,127,403 1,125,089 Less: Allowance for loan losses 1,053 888 Total commercial mortgage loans, net $ 1,126,350 $ 1,124,201
Loans and Leases Receivable, Allowance for Loan Losses Policy	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 loans. The loans are scored on a scale of 1 to 5 as follows: Investment 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 three months ended March 31, 2016 and March 31, 2015 , the activity in the Company's loan portfolio was as follows (in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Balance at Beginning of Year $ 1,124,201 $ 456,884 Acquisitions and originations 9,697 116,434 Dispositions — — Principal repayments (7,949 ) (14,321 ) Discount accretion and premium amortization* 566 205 Provision for loan losses (165 ) (144 ) Balance at End of Period $ 1,126,350 $ 559,058 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Real Estate Securities (Tables)

Real Estate Securities (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 16 4.81 % January 2019 $ 132,255 $ 124,871 December 31, 2015 16 4.71 % February 2019 133,183 130,754 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands): Total Level I Level II Level III March 31, 2016 Real estate securities $ 124,871 $ — $ 124,871 $ — December 31, 2015 Real estate securities 130,754 — 130,754 —
Available-for-Sale Securities	The following table shows the amortized cost, unrealized gains/losses and fair value of the Company's CMBS investments as of March 31, 2016 and December 31, 2015 (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2016 $ 132,089 $ 8 $ (7,226 ) $ 124,871 December 31, 2015 133,008 — (2,254 ) 130,754

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Master Repurchase Agreements	Below is a summary of the Company's MRAs as of March 31, 2016 and December 31, 2015 (in thousands): Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity As of March 31, 2016 J.P. Morgan Securities LLC $ 90,897 $ 159 $ 137,487 2.25 % 1 Citigroup Global Markets, Inc. 26,177 81 34,559 2.32 % 44 Wells Fargo Securities, LLC 3,375 3 4,500 1.79 % 13 Total/Weighted Average $ 120,449 $ 243 $ 176,546 2.25 % 11 As of December 31, 2015 J.P. 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 $52,962 and $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 March 31, 2016 and December 31, 2015, respectively.
Schedule of Long-term Debt Instruments	The following table represents the terms of the CLO issued. Facility ($000s) Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date As of March 31, 2016 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 As of December 31, 2015 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 $52,962 and $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 March 31, 2016 and December 31, 2015, respectively.
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 the Company's consolidated financial statements as of March 31, 2016 and 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 ($000s) March 31, 2016 December 31, 2015 Cash $ 5 $ 5 Commercial mortgage loans, held for investment, net 426,447 426,155 Accrued interest receivable 1,076 1,048 Total Assets $ 427,528 $ 427,208 Liabilities Notes payable (1)(2) $ 343,096 $ 342,998 Accrued interest payable 530 513 Total Liabilities $ 343,626 $ 343,511 ________________________ (1) Includes $55,776 and $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 March 31, 2016 and December 31, 2015 , respectively. (2) The balance is presented net of deferred financing cost and discount of $7,134 and $7,232 as of March 31, 2016 and December 31, 2015 , respectively. The notes payable balance as of December 31, 2015 of $348,269 as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of deferred financing cost of $5,271 .

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 , respectively: Three Months Ended March 31, 2016 2015 Net income (in thousands) $ 9,420 $ 4,632 Basic weighted average shares outstanding 31,548,897 17,279,713 Unvested restricted shares 6,114 4,373 Diluted weighted average shares outstanding 31,555,011 17,284,086 Basic net income per share $ 0.30 $ 0.27 Diluted net income per share $ 0.30 $ 0.27

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of Share Repurchases	The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016 : Number of Requests Number of Shares Repurchased Average Price per Share Cumulative as of December 31, 2015 301 381,474 23.72 January 1 - January 31, 2016 — — — February 1 - February 29, 2016 — — — March 1 - March 31, 2016 — — — Cumulative as of March 31, 2016 301 381,474 23.72

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Unfunded Commitments Under Commercial Mortgage Loans	As of March 31, 2016 and December 31, 2015 , the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers. Funding Expiration March 31, 2016 December 31, 2015 2016 $ 468 $ 890 2017 13,052 16,072 2018 99,079 104,428 2019 16,032 16,939 2020 — — 2021 — — Total $ 128,631 $ 138,329

Related Party Transactions an28

Related Party Transactions and Arrangements (Tables)	3 Months Ended
	Mar. 31, 2016
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 three months ended March 31, 2016 and 2015 , respectively, and the associated payable as of March 31, 2016 and December 31, 2015 , respectively (in thousands): Three Months Ended March 31, Payable as of 2016 2015 March 31, 2016 December 31, 2015 Total commissions and fees incurred from the Former Dealer Manager $ — $ 9,247 $ — $ — Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager $ — $ 1,962 $ 472 $ 480
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 three months ended March 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in thousands): Three Months Ended March 31, Payable as of 2016 2015 March 31, 2016 December 31, 2015 Acquisition fees and expense and others (*) $ 157 $ 1,781 $ — $ 55 Administrative services and expenses 816 — — 187 — Advisory and investment banking fee 6 14 — — Asset management and subordinated performance fee 3,010 362 3,683 3,792 Other related party expenses 26 21 61 — Total related party fees and reimbursements $ 4,015 $ 2,178 $ 3,931 $ 3,847 ________________________ * Includes amortization of capitalized acquisition fees and expenses.

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 16 4.81 % January 2019 $ 132,255 $ 124,871 December 31, 2015 16 4.71 % February 2019 133,183 130,754 The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands): Total Level I Level II Level III March 31, 2016 Real estate securities $ 124,871 $ — $ 124,871 $ — December 31, 2015 Real estate securities 130,754 — 130,754 —
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 March 31, 2016 and December 31, 2015 (in thousands): Level Carrying Amount Fair Value March 31, 2016 Commercial mortgage loans Asset III $ 1,127,403 $ 1,133,935 Collateralized loan obligation Liability II 287,320 289,080 December 31, 2015 Commercial mortgage loans Asset III 1,125,089 1,138,841 Collateralized loan obligation Liability II 287,229 289,733

Offsetting Assets and Liabili30

Offsetting Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015 , respectively (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 as Collateral Pledged Cash Collateral Pledged Net Amount March 31, 2016 Commercial mortgage loans $ 243,583 $ — $ 243,583 $ 377,231 $ 5,000 $ — Real estate securities (*) 120,449 — 120,449 179,628 1,498 — December 31, 2015 Commercial mortgage loans 206,239 — 206,239 355,802 5,000 — Real estate securities (*) 117,211 — 117,211 171,071 366 —

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table represents the Company's operations by segment for the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 Total Real Estate Debt Real Estate Securities Interest income $ 20,291 $ 18,676 $ 1,615 Interest expense 4,768 4,091 677 Net income 9,420 9,059 361 Three Months Ended March 31, 2015 Interest income 9,605 9,196 409 Interest expense 1,933 1,804 129 Net income 4,632 4,546 86 The following table represents the Company's total assets by segment as of March 31, 2016 and December 31, 2015 (in thousands): As of March 31, 2016 Total Real Estate Debt Real Estate Securities Total Assets $ 1,312,738 $ 1,186,001 $ 126,737 As of December 31, 2015 Total Assets 1,282,484 1,150,858 131,626

Organization and Business Ope32

Organization and Business Operations - Narrative (Details) - USD ($)	Nov. 15, 2012	Jan. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Dec. 30, 2014
Schedule of Equity Method Investments [Line Items]
Cumulative capital investment return, percentage of benchmark	6.00%				6.00%
Intentional maximum sale of stock			$ 80,000,000
Common stock, par value per share (in dollars per share)			$ 0.01	$ 0.01
Common Stock
Schedule of Equity Method Investments [Line Items]
Unsold shares deregistered (shares)		4,069
DRIP
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock			$ 16,800,000
DRIP | Common Stock
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock		$ 49,700,000
Advisor
Schedule of Equity Method Investments [Line Items]
Contributions from advisor	$ 1,000
Advisor | Convertible Stock
Schedule of Equity Method Investments [Line Items]
Issuance of stock (in shares)	1,000

Commercial Mortgage Loans - Loa

Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Senior loans		$ 901,272	$ 894,075
Mezzanine loans		216,131	221,014
Subordinated loans		10,000	10,000
Total gross carrying value of loans		1,127,403	1,125,089
Less: Allowance for loan losses		1,053	888	$ 714	$ 570
Total commercial mortgage loans, net	[1]	$ 1,126,350	$ 1,124,201
[1]	Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

Commercial Mortgage Loans - Pro

Commercial Mortgage Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 888	$ 570
Provision for loan losses	165	144
Charge-offs	0	0
Recoveries	0	0
Ending balance	$ 1,053	$ 714

Commercial Mortgage Loans - Nar

Commercial Mortgage Loans - Narrative (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016ratingloan	Dec. 31, 2015loan
Receivables [Abstract]
Number of mezzanine loans funded | loan	76	77
Weighted average risk rating of loans | rating	2

Commercial Mortgage Loans - L36

Commercial Mortgage Loans - Loans Receivable Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 1,127,403	$ 1,125,089
First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 1,136,193	$ 1,134,446
Loan type as a percent of total loans, percent	100.00%	100.00%
First Mortgage | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 312,957	$ 307,876
Loan type as a percent of total loans, percent	27.50%	27.20%
First Mortgage | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 302,436	$ 305,129
Loan type as a percent of total loans, percent	26.60%	26.90%
First Mortgage | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 172,086	$ 171,752
Loan type as a percent of total loans, percent	15.10%	15.10%
First Mortgage | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 159,476	$ 158,784
Loan type as a percent of total loans, percent	14.00%	14.00%
First Mortgage | Mixed Use
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 136,925	$ 138,798
Loan type as a percent of total loans, percent	12.10%	12.20%
First Mortgage | Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 52,313	$ 52,107
Loan type as a percent of total loans, percent	4.70%	4.60%

Commercial Mortgage Loans - Rea

Commercial Mortgage Loans - Real Estate Notes Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at Beginning of Year	$ 1,124,201	$ 456,884
Acquisitions and originations	9,697	116,434
Dispositions	0	0
Principal repayments	(7,949)	(14,321)
Discount accretion and premium amortization	566	205
Provision for loan losses	(165)	(144)
Balance at End of Period	$ 1,126,350	$ 559,058

Real Estate Securities - Fair V

Real Estate Securities - Fair Value Measurements, Recurring and Nonrecurring (Details) - Real estate securities $ in Thousands	Mar. 31, 2016USD ($)investment	Dec. 31, 2015USD ($)investment
Schedule of Available-for-sale Securities [Line Items]
Number of Investments | investment	16	16
Interest Rate	4.81%	4.71%
Par value of investments	$ 132,255	$ 133,183
Fair value of investments	$ 124,871	$ 130,754

Real Estate Securities - Availa

Real Estate Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Real estate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	132,089	133,008
Unrealized Gains	8	0
Unrealized Losses	(7,226)	(2,254)
Real estate securities, at fair value	$ 124,871	$ 130,754

Real Estate Securities - Narrat

Real Estate Securities - Narrative (Details) - Real estate securities $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)investment	Dec. 31, 2015USD ($)investment
Schedule of Available-for-sale Securities [Line Items]
Number of Investments | investment	16	16
Aggregate carrying value	$ 132,089	$ 133,008
Unrealized loss	$ 7,226	$ 2,254
Number of investments in an unrealized loss position, 12 months or longer | investment	7
Unrealized loss for 12 months or longer	$ 200

Debt - Narrative (Details)

Debt - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016USD ($)extension$ / sharesshares	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Oct. 19, 2015USD ($)mortgage_asset$ / sharesshares
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
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
U.S. Bank National Association | Secured Debt
Line of Credit Facility [Line Items]
Notes payable	$ 350,230,000		$ 350,230,000	$ 350,200,000
U.S. Bank National Association | Secured Debt | Class C Notes
Line of Credit Facility [Line Items]
Notes payable	$ 76,044,000		$ 76,044,000	$ 76,000,000
U.S. Bank National Association | Secured Debt | Collateralized Loan Obligations
Line of Credit Facility [Line Items]
Number of mortgage assets pledged as collateral (mortgage asset) | mortgage_asset				28
Principal balance of collateral				$ 428,400,000
U.S. Bank National Association | Secured Debt | Subsidiaries | Class C Notes
Line of Credit Facility [Line Items]
Notes payable				$ 56,000,000
London Interbank Offered Rate (LIBOR) | Secured Debt | Class C Notes
Line of Credit Facility [Line Items]
Variable interest rate	5.25%		5.25%
Minimum
Line of Credit Facility [Line Items]
MRA maturity term (days)	30 days
Maximum
Line of Credit Facility [Line Items]
MRA maturity term (days)	90 days
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving line of credit	$ 120,449,000		$ 117,211,000
Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	150,000,000
Revolving line of credit	$ 121,700,000		$ 84,300,000
Weighted average interest rate	2.70%		3.10%
Interest expense	$ 800,000	$ 700,000
Revolving Credit Facility | JPM Repo Facility | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	2.25%
Revolving Credit Facility | JPM Repo Facility | Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	4.50%
Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	$ 150,000,000
Extension on initial maturity date (years)	1 year
Increase in pricing rate per year	0.50%
Number of extensions (extension) | extension	2
Extension on extended maturity date (months)	6 months
Revolving line of credit	$ 121,900,000		$ 121,900,000
Weighted average interest rate	2.50%		2.40%
Interest expense	$ 800,000	$ 500,000
Revolving Credit Facility | Barclays Repo Facility | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	2.50%
Revolving Credit Facility | Barclays Repo Facility | Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	3.00%

Debt - Schedule of Master Repur

Debt - Schedule of Master Repurchase Agreements (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Accrued Interest	[1]	$ 924	$ 792
Real estate securities, at fair value		124,871	130,754
Class C Notes | Secured Debt | U.S. Bank National Association
Assets Sold under Agreements to Repurchase [Line Items]
Real estate securities, at fair value		52,962	56,044
Revolving Credit Facility
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		120,449	117,211
Accrued Interest		243	182
Collateral Pledged		$ 176,546	$ 171,071
Interest Rate		2.25%	2.01%
Days to Maturity		11 days	17 days
Revolving Credit Facility | J.P. Morgan Securities LLC
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 90,897	$ 86,898
Accrued Interest		159	108
Collateral Pledged		$ 137,487	$ 130,618
Interest Rate		2.25%	2.03%
Days to Maturity		1 day	8 days
Revolving Credit Facility | Citigroup Global Markets, Inc.
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 26,177	$ 26,619
Accrued Interest		81	71
Collateral Pledged		$ 34,559	$ 35,528
Interest Rate		2.32%	2.00%
Days to Maturity		44 days	45 days
Revolving Credit Facility | Wells Fargo Securities, LLC
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 3,375	$ 3,694
Accrued Interest		3	3
Collateral Pledged		$ 4,500	$ 4,925
Interest Rate		1.79%	1.67%
Days to Maturity		13 days	13 days
[1]	Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

Debt - Schedule of CLO Issued (

Debt - Schedule of CLO Issued (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Oct. 19, 2015
Debt Instrument [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Secured Debt | Tranche A | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	1.75%	1.75%
Secured Debt | Tranche B | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	3.88%	3.88%
Secured Debt | Tranche C | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	5.25%	5.25%
U.S. Bank National Association | Secured Debt
Debt Instrument [Line Items]
Par value issued	$ 350,230	$ 350,230	$ 350,200
Par value outstanding	294,186	294,186
U.S. Bank National Association | Secured Debt | Tranche A
Debt Instrument [Line Items]
Par value issued	231,345	231,345
Par value outstanding	231,345	231,345
U.S. Bank National Association | Secured Debt | Tranche B
Debt Instrument [Line Items]
Par value issued	42,841	42,841
Par value outstanding	42,841	42,841
U.S. Bank National Association | Secured Debt | Tranche C
Debt Instrument [Line Items]
Par value issued	76,044	76,044	$ 76,000
Par value outstanding	20,000	20,000
Real estate securities, at fair value	$ 52,962	$ 56,044

Debt - Assets and Liabilities o

Debt - Assets and Liabilities of the Company's VIE (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015	Oct. 19, 2015	Mar. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Cash		$ 49,207	$ 14,807		$ 17,155	$ 386
Commercial mortgage loans, held for investment, net	[1]	1,126,350	1,124,201
Accrued interest receivable	[2]	5,160	5,360
Total assets		1,312,738	1,282,484
Accrued Interest	[3]	924	792
Total liabilities		663,549	628,155
Collateralized loan obligation		287,320	287,229
U.S. Bank National Association | Secured Debt
Variable Interest Entity [Line Items]
Notes payable		350,230	350,230	$ 350,200
U.S. Bank National Association | Secured Debt | Class C Notes
Variable Interest Entity [Line Items]
Notes payable		76,044	76,044	$ 76,000
Collateralized loan obligation		55,776	55,769
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Cash		5	5
Commercial mortgage loans, held for investment, net		426,447	426,155
Accrued interest receivable		1,076	1,048
Total assets		427,528	427,208
Notes payable		343,096	342,998
Accrued Interest		530	513
Total liabilities		343,626	343,511
Deferred financing cost and discount		$ 7,134	7,232
Variable Interest Entity, Primary Beneficiary | Notes Payable
Variable Interest Entity [Line Items]
Notes payable gross			348,269
Deferred financing cost			$ 5,271
[1]	Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.
[2]	Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.
[3]	Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

Net Income Per Share - Summary

Net Income Per Share - Summary of the Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 9,420	$ 4,632
Basic weighted average shares outstanding	31,548,897	17,279,713
Unvested restricted shares	6,114	4,373
Diluted weighted average shares outstanding	31,555,011	17,284,086
Basic net income (loss) per share (in dollars per share)	$ 0.30	$ 0.27
Diluted net income (loss) per share (in dollars per share)	$ 0.30	$ 0.27

Common Stock - Narrative (Detai

Common Stock - Narrative (Details) $ / shares in Units, $ in Millions	Feb. 28, 2016	Dec. 30, 2014$ / sharesshares	Mar. 31, 2016$ / sharesshares	May. 31, 2013$ / shares	Mar. 31, 2016USD ($)shares	Dec. 31, 2015USD ($)shares	Nov. 04, 2015$ / shares	Nov. 15, 2012
Class of Stock [Line Items]
Proceeds from issuance of common stock, DRIP | $					$ 755.5	$ 755.5
Cumulative capital investment return, percentage of benchmark		6.00%						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)				$ 0.00565068493
Common stock, dividends, per share per day, declared if it's a leap year (in dollars per share)			$ 0.0056352459
Common stock, dividends, per share per year, declared (in dollars per share)			$ 2.0625	$ 2.0625
Total distributions | $					$ 16.2	47.1
Cash distributions | $					9.6	26.9
Common stock distributions | $					$ 6.6	$ 20.2
Maximum share repurchases per fiscal semester	2.50%
Maximum share repurchases per fiscal year	5.00%
NAV per share (in dollars per share)							$ 25.27
Convertible Stock
Class of Stock [Line Items]
Shares outstanding (in shares) | shares			1,000		1,000	1,000
Issuance of convertible stock (in shares) | shares		1,000
Advisor | Convertible Stock
Class of Stock [Line Items]
Issuance of convertible stock (in shares) | shares		1,000
Convertible stock, per share value		$ 1
Common Stock
Class of Stock [Line Items]
Shares outstanding (in shares) | shares			31,645,633		31,645,633	31,385,280
Share Repurchase Program (SRP)
Class of Stock [Line Items]
Share repurchase program, NAV multiplier year one	92.50%
Share repurchase program, NAV multiplier year two	95.00%
Share repurchase program, NAV multiplier year three	97.50%
Share repurchase program, NAV multiplier year four	100.00%

Common Stock - Shares Repurchas

Common Stock - Shares Repurchased During the Period (Details) - Share Repurchase Program (SRP) - Common Stock	1 Months Ended
	Mar. 31, 2016share_repurchase_requestshares$ / shares	Feb. 29, 2016share_repurchase_request$ / sharesshares	Jan. 31, 2016share_repurchase_request$ / sharesshares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, number of requests (share repurchase request) | share_repurchase_request			301
Number of requests during the period (share repurchase request) | share_repurchase_request	0	0	0
Ending balance, number of requests (share repurchase request)	301
Beginning balance, number of shares repurchased (shares)			381,474
Number of shares repurchased (shares)	0	0	0
Ending balance, number of shares repurchased (shares)	381,474
Beginning balance, average price per share (usd per share) | $ / shares			$ 23.72
Repurchases, average price per share (usd per share) | $ / shares	$ 0	$ 0	$ 0
Ending balance, average price per share (usd per share) | $ / shares	$ 23.72

Commitments and Contingencies48

Commitments and Contingencies (Details) - Loan Origination Commitments - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Unrecorded Unconditional Purchase Obligation [Line Items]
2,016	$ 468	$ 890
2,017	13,052	16,072
2,018	99,079	104,428
2,019	16,032	16,939
2,020	0	0
2,021	0	0
Total unfunded commitments	$ 128,631	$ 138,329

Related Party Transactions an49

Related Party Transactions and Arrangements - Narrative (Details) - USD ($)	Dec. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jun. 01, 2013
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares)		31,645,633		31,385,280
Selling commission, organizational and offering costs, maximum		2.00%
Organizational and offering costs, amount exceeding offering proceeds		$ 800,000		$ 800,000
Asset management and subordinated performance fee		3,010,000	$ 362,000
Prepaid expenses and other assets		649,000		$ 689,000	$ 900,000
Acquisition related expenses and fees		$ 157,000	1,032,000
Convertible Stock
Related Party Transaction [Line Items]
Issuance of convertible stock (in shares)	1,000
Sponsor
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares)		8,888		888
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%
Related party expenses		$ 0	9,247,000
Prepaid expenses and other assets				$ 6,000
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%
Affiliate
Related Party Transaction [Line Items]
Related party expenses		$ 4,015,000	2,178,000
Affiliate | Advisor | Asset Management Fee
Related Party Transaction [Line Items]
Related party expenses		$ 2,400,000	0
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, total return threshold		6.00%
Subordinated participation in asset sale fee		15.00%
Subordinated participation in asset sale fee maximum		10.00%
Asset management and subordinated performance fee		$ 600,000	400,000
Administrative services reimbursement, limitation, percentage of average invested assets		2.00%
Administrative services reimbursement, limitation, percentage of net income		25.00%
Real estate disposition fee, percentage		1.00%
Principal amount of debt, obligated to pay as disposition fee for each investment sold		1.00%
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]
Related party expenses		$ 800,000
Advisor | Incurred | Acquisition fees and acquisition expenses
Related Party Transaction [Line Items]
Related party expenses		$ 200,000	1,000,000
Advisor | Payable | Acquisition fees and acquisition expenses
Related Party Transaction [Line Items]
Related party expenses			700,000
Advisor | Waived
Related Party Transaction [Line Items]
Acquisition related expenses and fees			$ 100,000

Related Party Transactions an50

Related Party Transactions and Arrangements - Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable to related party	$ 4,403		$ 4,327
Dealer Manager
Related Party Transaction [Line Items]
Related party expenses	0	$ 9,247
Payable to related party	0		0
Advisor and Dealer Manager | Fees and Expense Reimbursement, Stock Offering
Related Party Transaction [Line Items]
Related party expenses	0	$ 1,962
Payable to related party	$ 472		$ 480

Related Party Transactions an51

Related Party Transactions and Arrangements - Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable to related party	$ 4,403,000		$ 4,327,000
Affiliate
Related Party Transaction [Line Items]
Related party expenses	4,015,000	$ 2,178,000
Payable to related party	3,931,000		3,847,000
Affiliate | Nonrecurring Fees | Acquisition fees and expenses
Related Party Transaction [Line Items]
Related party expenses	157,000	1,781,000
Payable to related party	0		55,000
Affiliate | Nonrecurring Fees | Administrative services and expenses
Related Party Transaction [Line Items]
Related party expenses	816,000	0
Payable to related party	187,000		0
Affiliate | Nonrecurring Fees | Advisory and investment banking fee
Related Party Transaction [Line Items]
Related party expenses	6,385	14,000
Payable to related party	0		0
Affiliate | Nonrecurring Fees | Asset management and subordinated performance fee
Related Party Transaction [Line Items]
Related party expenses	3,010,000	362,000
Payable to related party	3,683,000		3,792,000
Affiliate | Nonrecurring Fees | Other related party expenses
Related Party Transaction [Line Items]
Related party expenses	26,000	$ 21,000
Payable to related party	$ 61,000		$ 0

Fair Value of Financial Instr52

Fair Value of Financial Instruments - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	124,871	130,754
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	124,871	130,754
Fair Value, Measurements, Recurring | Real estate securities | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	0	0
Fair Value, Measurements, Recurring | Real estate securities | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	124,871	130,754
Fair Value, Measurements, Recurring | Real estate securities | Level III
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 Instr53

Fair Value of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans	[1]	$ 1,126,350	$ 1,124,201
Collateralized loan obligation		287,320	287,229
Carrying Amount | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans		1,127,403	1,125,089
Carrying Amount | Level II
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligation		287,320	287,229
Fair Value | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans		1,133,935	1,138,841
Fair Value | Level II
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligation		$ 289,080	$ 289,733
[1]	Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

Offsetting Assets and Liabili54

Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commercial mortgage loans
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 243,583	$ 206,239
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	243,583	206,239
Financial Instruments as Collateral Pledged	377,231	355,802
Cash Collateral Pledged	5,000	5,000
Net Amount	0	0
Real Estate Securities
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	120,449	117,211
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	120,449	117,211
Financial Instruments as Collateral Pledged	179,628	171,071
Cash Collateral Pledged	1,498	366
Net Amount	0	0
Real Estate Securities | U.S. Bank National Association | Class C Notes | Secured Debt
Offsetting Liabilities [Line Items]
Net Amount of Liabilities Presented on the Balance Sheet	$ 56,044	$ 56,044

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 20,291	$ 9,605
Interest expense	4,768	1,933
Net income	9,420	4,632
Total assets	1,312,738		$ 1,282,484
Operating Segments | Real Estate Debt
Segment Reporting Information [Line Items]
Interest income	18,676	9,196
Interest expense	4,091	1,804
Net income	9,059	4,546
Total assets	1,186,001		1,150,858
Operating Segments | Real Estate Securities
Segment Reporting Information [Line Items]
Interest income	1,615	409
Interest expense	677	129
Net income	361	$ 86
Total assets	$ 126,737		$ 131,626

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($) $ in Thousands	Apr. 01, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Subsequent Event [Line Items]
Distributions paid		$ 9,619	$ 4,697
Dividends in cash		9,600		$ 26,900
Common stock issued through distribution reinvestment plan		$ 6,582
Subsequent Event
Subsequent Event [Line Items]
Distributions paid	$ 5,500
Dividends in cash	3,300
Common stock issued through distribution reinvestment plan	$ 2,200
Shares issued under DRIP (in shares)	86,595